Document:

Exhibit 10.4

 

 

 

FORM OF INTERCREDITOR AGREEMENT

 

by and among

 

JPMORGAN CHASE BANK, N.A., as Senior
Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as First
Mezzanine Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as Second
Mezzanine Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as Third
Mezzanine Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as Fourth
Mezzanine Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as Fifth
Mezzanine Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as Sixth
Mezzanine Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as Seventh
Mezzanine Lender

 

Dated as of December 21, 2007

 

 

 

 

FORM OF
INTERCREDITOR AGREEMENT

 

THIS INTERCREDITOR AGREEMENT (this “Agreement”), dated as of December 21,
2007, by and among JPMORGAN CHASE
BANK, N.A., a banking association chartered under the laws of
the United States of America (together with its successors and assigns, “Senior Lender”), as collateral agent for
itself and the other Senior Noteholders (as defined below), JPMORGAN CHASE BANK, N.A., a banking
association chartered under the laws of the United States of America (together
with its successors and assigns, “First
Mezzanine Lender”), as collateral agent for itself and the other
First Mezzanine Noteholders (as defined below), JPMORGAN CHASE BANK, N.A., a banking association
chartered under the laws of the United States of America (together with its
successors and assigns, “Second Mezzanine
Lender”), as collateral agent for itself and the other Second
Mezzanine Noteholders (as defined below), JPMORGAN
CHASE BANK, N.A., a banking association chartered under the
laws of the United States of America (together with its successors and assigns,
“Third Mezzanine Lender”), as
collateral agent for itself and the other Third Mezzanine Noteholders (as
defined below), JPMORGAN CHASE
BANK, N.A., a banking association chartered under the laws of
the United States of America (together with its successors and assigns, “Fourth Mezzanine Lender”), as collateral
agent for itself and the other Fourth Mezzanine Noteholders (as defined below),
JPMORGAN CHASE BANK, N.A., a
banking association chartered under the laws of the United States of America
(together with its successors and assigns, “Fifth
Mezzanine Lender”), as collateral agent for itself and the other
Fifth Mezzanine Noteholders (as defined below), JPMORGAN CHASE BANK, N.A., a banking association
chartered under the laws of the United States of America (together with its
successors and assigns, “Sixth Mezzanine
Lender”), as collateral agent for itself and the other Sixth
Mezzanine Noteholders (as defined below), and JPMORGAN
CHASE BANK, N.A., a banking association chartered under the
laws of the United States of America (together with its successors and assigns,
“Seventh Mezzanine Lender”), as
collateral agent for itself and the other Seventh Mezzanine Noteholders (as
defined below). First Mezzanine Lender, Second Mezzanine Lender, Third
Mezzanine Lender, Fourth Mezzanine Lender, Fifth Mezzanine Lender, Sixth
Mezzanine Lender and Seventh Mezzanine Lender are each a “Junior Lender” and, collectively, “Junior Lenders”.

 

RECITALS

 

WHEREAS, pursuant to the terms, provisions and
conditions set forth in that certain Loan Agreement, dated as of the date
hereof by and between Senior Borrower (as defined below) and Senior Lender (as
the same may be amended, replaced, restated, supplemented or otherwise modified
from time to time, the “Senior Loan Agreement”),
Senior Lender has made a loan to Senior Borrower in the original principal
amount of Three Billion and No/100 Dollars ($3,000,000,000.00) (the “Senior Loan”), which Senior Loan is
evidenced by that certain Promissory Note, dated as of the date hereof, given
by Senior Borrower to JPMorgan Chase Bank, N.A., a banking association
chartered under the laws of the United States of America, Column
Financial, Inc., a Delaware corporation, and Bank of America, N.A., a
banking association chartered under the laws of the United States of America
(collectively, the “Senior Noteholders”),
in the stated principal amount of Three Billion and No/100 Dollars
($3,000,000,000.00) (as the same may be consolidated, extended, severed, split,
amended, replaced, restated, supplemented or otherwise modified from time to
time, the “Senior Note”), and
secured by, among other things, the Mortgages (as defined below), which
Mortgages encumber the real property and all improvements thereon and
appurtenances thereto described therein (collectively, the “Premises”) (the Mortgages, and together
with the Senior Loan Agreement, the Senior Note and the other agreements,
instruments and documents set forth on Exhibit A
hereto, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time, subject to the terms and conditions
contained in this Agreement, collectively, the “Senior Loan Documents”);

 

WHEREAS, pursuant to the terms, provisions and
conditions set forth in that certain Loan Agreement (First Mezzanine Loan),
dated as of the date hereof by and between First Mezzanine Borrower (as defined
below) and First Mezzanine Lender (as the same may be amended, replaced,
restated, supplemented or otherwise modified from time to time, the “First Mezzanine Loan Agreement”), First
Mezzanine Lender has made a loan to First Mezzanine Borrower in the original 

 

 

principal amount of One
Hundred Million and No/100 Dollars ($100,000,000.00) (the “First Mezzanine Loan”), which First
Mezzanine Loan is evidenced by that certain Promissory Note (First Mezzanine
Loan), dated as of the date hereof, given by First Mezzanine Borrower to
JPMorgan Chase Bank, N.A., a banking association chartered under the laws
of the United States of America, Column Financial, Inc., a Delaware
corporation, and Bank of America, N.A., a banking association chartered
under the laws of the United States of America (collectively, the “First Mezzanine Noteholders”), in the stated
principal amount of One Hundred Million and No/100 Dollars ($100,000,000.00)
(as the same may be consolidated, extended, severed, split, amended, replaced,
restated, supplemented or otherwise modified from time to time, the “First Mezzanine Note”), and secured by,
among other things, certain Pledge and Security Agreement (First Mezzanine
Loan), dated as of the date hereof, from First Mezzanine Borrower in favor of
First Mezzanine Lender (as the same may be amended, replaced, restated,
supplemented or otherwise modified from time to time, the “First Mezzanine Pledge Agreement”),
pursuant to which First Mezzanine Lender is granted a first priority security
interest in the Pledged Collateral (as defined in and more fully described
therein). The First Mezzanine Pledge Agreement, together with the First
Mezzanine Loan Agreement, the First Mezzanine Note and the other agreements,
instruments and documents set forth on Exhibit B
attached hereto, as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time, subject to the terms and conditions
contained in this Agreement, are herein collectively referred to as the “First Mezzanine Loan Documents”;

 

WHEREAS, pursuant to the terms, provisions and
conditions set forth in that certain Loan Agreement (Second Mezzanine Loan),
dated as of the date hereof, by and between Second Mezzanine Borrower (as
defined below) and Second Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Second Mezzanine Loan Agreement”), Second
Mezzanine Lender has made a loan to Second Mezzanine Borrower in the original
principal amount of Two Hundred Fifty Million and No/100 Dollars
($250,000,000.00) (the “Second Mezzanine Loan”),
which Second Mezzanine Loan is evidenced by that certain Promissory Note
(Second Mezzanine Loan), dated as of the date hereof, given by Second Mezzanine
Borrower to JPMorgan Chase Bank, N.A., a banking association chartered
under the laws of the United States of America, Column Financial, Inc., a
Delaware corporation, and Bank of America, N.A., a banking association
chartered under the laws of the United States of America (collectively, the “Second Mezzanine Noteholders”), in the
stated principal amount of Two Hundred Fifty Million and No/100 Dollars
($250,000,000.00) (as the same may be consolidated, extended, severed, split,
amended, replaced, restated, supplemented or otherwise modified from time to
time, the “Second Mezzanine Note”),
and secured by, among other things, certain Pledge and Security Agreement
(Second Mezzanine Loan), dated as of the date hereof from Second Mezzanine
Borrower in favor of Second Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Second Mezzanine Pledge Agreement”),
pursuant to which Second Mezzanine Lender is granted a first priority security
interest in the Pledged Collateral (as defined in and more fully described
therein). The Second Mezzanine Pledge Agreement, together with the Second
Mezzanine Loan Agreement, the Second Mezzanine Note and the other agreements,
instruments and documents set forth on Exhibit C
attached hereto, as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time, subject to the terms and conditions
contained in this Agreement, are herein collectively referred to as the “Second Mezzanine Loan Documents”;

 

WHEREAS, pursuant to the terms, provisions and
conditions set forth in that certain Loan Agreement (Third Mezzanine Loan),
dated as of the date hereof by and between Third Mezzanine Borrower (as defined
below) and Third Mezzanine Lender (as the same may be amended, replaced,
restated, supplemented or otherwise modified from time to time, the “Third Mezzanine Loan Agreement”), Third
Mezzanine Lender has made a loan to Third Mezzanine Borrower in the original
principal amount of Two Hundred Fifty Million and No/100 Dollars
($250,000,000.00) (the “Third Mezzanine Loan”),
which Third Mezzanine Loan is evidenced by that certain Promissory Note (Third 

 

2

 

Mezzanine Loan), dated as of the date hereof,
given by Third Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking
association chartered under the laws of the United States of America, Column
Financial, Inc., a Delaware corporation, and Bank of America, N.A., a
banking association chartered under the laws of the United States of America
(collectively, the “Third Mezzanine
Noteholders”), in the stated principal amount of Two Hundred Fifty
Million and No/100 Dollars ($250,000,000.00) (as the same may be consolidated,
extended, severed, split, amended, replaced, restated, supplemented or
otherwise modified from time to time, the “Third
Mezzanine Note”), and secured by, among other things, certain Pledge
and Security Agreement (Third Mezzanine Loan), dated as of the date hereof,
from Third Mezzanine Borrower in favor of Third Mezzanine Lender (as the same
may be amended, replaced, restated, supplemented or otherwise modified from
time to time, the “Third Mezzanine Pledge
Agreement”), pursuant to which Third Mezzanine Lender is granted a
first priority security interest in the Pledged Collateral (as defined in and
more fully described therein). The Third Mezzanine Pledge Agreement, together
with the Third Mezzanine Loan Agreement, the Third Mezzanine Note and the other
agreements, instruments and documents set forth on Exhibit D attached hereto, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time,
subject to the terms and conditions contained in this Agreement, are herein
collectively referred to as the “Third
Mezzanine Loan Documents”;

 

WHEREAS, pursuant to the terms, provisions and
conditions set forth in that certain Loan Agreement (Fourth Mezzanine Loan),
dated as of the date hereof, by and between Fourth Mezzanine Borrower (as
defined below) and Fourth Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Fourth Mezzanine Loan Agreement”), Fourth
Mezzanine Lender has made a loan to Fourth Mezzanine Borrower in the original
principal amount of Two Hundred Fifty Million and No/100 Dollars
($250,000,000.00) (the “Fourth Mezzanine Loan”),
which Fourth Mezzanine Loan is evidenced by that certain Promissory Note
(Fourth Mezzanine Loan), dated as of the date hereof, given by Fourth Mezzanine
Borrower to JPMorgan Chase Bank, N.A., a banking association chartered
under the laws of the United States of America, Column Financial, Inc., a
Delaware corporation, and Bank of America, N.A., a banking association
chartered under the laws of the United States of America (collectively, the “Fourth Mezzanine Noteholders”), in the
stated principal amount of Two Hundred Fifty Million and No/100 Dollars
($250,000,000.00) (as the same may be consolidated, extended, severed, split,
amended, replaced, restated, supplemented or otherwise modified from time to
time, the “Fourth Mezzanine Note”),
and secured by, among other things, certain Pledge and Security Agreement
(Fourth Mezzanine Loan), dated as of the date hereof, from Fourth Mezzanine
Borrower in favor of Fourth Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Fourth Mezzanine Pledge Agreement”),
pursuant to which Fourth Mezzanine Lender is granted a first priority security
interest in the Pledged Collateral (as defined in and more fully described
therein). The Fourth Mezzanine Pledge Agreement, together with the Fourth
Mezzanine Loan Agreement, the Fourth Mezzanine Note and the other agreements,
instruments and documents set forth on Exhibit E
attached hereto, as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time, subject to the terms and conditions
contained in this Agreement, are herein collectively referred to as the “Fourth Mezzanine Loan Documents”;

 

WHEREAS, pursuant to the terms, provisions and
conditions set forth in that certain Loan Agreement (Fifth Mezzanine Loan),
dated as of the date hereof, by and between Fifth Mezzanine Borrower (as
defined below) and Fifth Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Fifth Mezzanine Loan Agreement”), Fifth
Mezzanine Lender has made a loan to Fifth Mezzanine Borrower in the original
principal amount of Two Hundred Fifty Million and No/100 Dollars
($250,000,000.00) (the “Fifth Mezzanine Loan”),
which Fifth Mezzanine Loan is evidenced by that certain Promissory Note (Fifth
Mezzanine Loan), dated as of the date hereof, given by Fifth Mezzanine Borrower
to JPMorgan Chase Bank, N.A., a banking association chartered under the
laws of the United States of America, Column 

 

3

 

Financial, Inc., a Delaware corporation,
and Bank of America, N.A., a banking association chartered under the laws
of the United States of America (collectively, the “Fifth Mezzanine Noteholders”), in the stated principal amount
of Two Hundred Fifty Million and No/100 Dollars ($250,000,000.00) (as the same
may be consolidated, extended, severed, split, amended, replaced, restated,
supplemented or otherwise modified from time to time, the “Fifth Mezzanine Note”), and secured by,
among other things, certain Pledge and Security Agreement (Fifth Mezzanine
Loan), dated as of the date hereof, from Fifth Mezzanine Borrower in favor of
Fifth Mezzanine Lender (as the same may be amended, replaced, restated,
supplemented or otherwise modified from time to time, the “Fifth Mezzanine Pledge Agreement”),
pursuant to which Fifth Mezzanine Lender is granted a first priority security
interest in the Pledged Collateral (as defined in and more fully described
therein). The Fifth Mezzanine Pledge Agreement, together with the Fifth
Mezzanine Loan Agreement, the Fifth Mezzanine Note and the other agreements,
instruments and documents set forth on Exhibit F
attached hereto, as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time, subject to the terms and conditions
contained in this Agreement, are herein collectively referred to as the “Fifth Mezzanine Loan Documents”;

 

WHEREAS, pursuant to the terms, provisions and
conditions set forth in that certain Loan Agreement (Sixth Mezzanine Loan),
dated as of the date hereof, by and between Sixth Mezzanine Borrower (as
defined below) and Sixth Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Sixth Mezzanine Loan Agreement”), Sixth
Mezzanine Lender has made a loan to Sixth Mezzanine Borrower in the original
principal amount of Two Hundred Fifty Million and No/100 Dollars
($250,000,000.00) (the “Sixth Mezzanine Loan”),
which Sixth Mezzanine Loan is evidenced by that certain Promissory Note (Sixth
Mezzanine Loan), dated as of the date hereof, given by Sixth Mezzanine Borrower
to JPMorgan Chase Bank, N.A., a banking association chartered under the
laws of the United States of America, Column Financial, Inc., a Delaware
corporation, and Bank of America, N.A., a banking association chartered
under the laws of the United States of America (collectively, the “Sixth Mezzanine Noteholders”), in the
stated principal amount of Two Hundred Fifty Million and No/100 Dollars
($250,000,000.00) (as the same may be consolidated, extended, severed, split,
amended, replaced, restated, supplemented or otherwise modified from time to
time, the “Sixth Mezzanine Note”),
and secured by, among other things, certain Pledge and Security Agreement
(Sixth Mezzanine Loan), dated as of the date hereof, from Sixth Mezzanine
Borrower in favor of Sixth Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Sixth Mezzanine Pledge Agreement”),
pursuant to which Sixth Mezzanine Lender is granted a first priority security
interest in the Pledged Collateral (as defined in and more fully described
therein). The Sixth Mezzanine Pledge Agreement, together with the Sixth
Mezzanine Loan Agreement, the Sixth Mezzanine Note and the other agreements,
instruments and documents set forth on Exhibit G
attached hereto, as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time, subject to the terms and conditions
contained in this Agreement, are herein collectively referred to as the “Sixth Mezzanine Loan Documents”;

 

WHEREAS, pursuant to the terms, provisions and
conditions set forth in that certain Loan Agreement (Seventh Mezzanine Loan),
dated as of the date hereof, by and between Seventh Mezzanine Borrower (as
defined below) and Seventh Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Seventh Mezzanine Loan Agreement”), Seventh
Mezzanine Lender has made a loan to Seventh Mezzanine Borrower in the original
principal amount of Two Hundred Fifty Million and No/100 Dollars
($250,000,000.00) (the “Seventh Mezzanine
Loan”), which Seventh Mezzanine Loan is evidenced by that certain
Promissory Note (Seventh Mezzanine Loan), dated as of the date hereof, given by
Seventh Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking
association chartered under the laws of the United States of America, Column Financial, Inc.,
a Delaware corporation, and Bank of America, N.A., a banking association
chartered under the laws of the United States of America 

 

4

 

(collectively, the “Seventh Mezzanine Noteholders”), in the
stated principal amount of Two Hundred Fifty Million and No/100 Dollars
($250,000,000.00) (as the same may be consolidated, extended, severed, split,
amended, replaced, restated, supplemented or otherwise modified from time to
time, the “Seventh Mezzanine Note”),
and secured by, among other things, certain Pledge and Security Agreement
(Seventh Mezzanine Loan), dated as of the date hereof, from Seventh Mezzanine
Borrower in favor of Seventh Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Seventh Mezzanine Pledge Agreement”),
pursuant to which Seventh Mezzanine Lender is granted a first priority security
interest in the Pledged Collateral (as defined in and more fully described therein).
The Seventh Mezzanine Pledge Agreement, together with the Seventh Mezzanine
Loan Agreement, the Seventh Mezzanine Note and the other agreements,
instruments and documents set forth on Exhibit H
attached hereto, as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time, subject to the terms and conditions
contained in this Agreement, are herein collectively referred to as the “Seventh Mezzanine Loan Documents”;

 

WHEREAS, Senior Lender and Junior Lenders desire to
enter into this Agreement to provide for the relative priority of, and to
evidence certain agreements with respect to, the Senior Loan Documents, the
First Mezzanine Loan Documents, the Second Mezzanine Loan Documents, the Third
Mezzanine Loan Documents, the Fourth Mezzanine Loan Documents, the Fifth
Mezzanine Loan Documents, the Sixth Mezzanine Loan Documents and the Seventh
Mezzanine Loan Documents on the terms and conditions hereinbelow set forth.

 

NOW, THEREFORE, in consideration of the
foregoing recitals and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Senior Lender and Junior
Lenders hereby agree as follows:

 

Section 1.  Certain
Definitions; Rules of Construction.  (a) As used in this Agreement, the
following capitalized terms shall have the following meanings:

 

“Accepted Servicing Practices” means any
servicing standard by which Senior Lender may be bound under the applicable
servicing agreement pursuant to which the Senior Loan is serviced.

 

“Additional Covered Junior Loans” has the
meaning provided in Section 14(c) hereof.

 

“Affected Property” has the meaning provided
in Section 15(n) hereof.

 

“Affiliate” means, as to any particular
Person (as hereinafter defined), any Person directly or indirectly, through one
or more intermediaries, Controlling, Controlled by or under common Control with
the Person or Persons in question.

 

“Affiliate Junior Lender” shall have the
meaning set forth in Section 38
hereof.

 

“Agreement” means this Agreement, as the
same may be amended and in effect from time to time, pursuant to the terms
hereof.

 

“Award” has the meaning set forth in Section 10(e) hereof.

 

“BofA” means Bank of America, N.A., a
national banking association, and its successors in interest.

 

“Borrower Group” has the meaning set forth
in Section 11(d)(ii) hereof.

 

“Business Day” means any day other than a
Saturday, Sunday or any other day on which national banks in New York, New York
or the place of business of any servicer of the Loans are not open for
business.

 

“CDO” has the meaning set forth in the
definition of the term “Qualified Transferee”.

 

5

 

“CDO Asset Manager” with respect to any
Securitization Vehicle (hereinafter defined) that is a CDO, means the entity
that is responsible for managing or administering any Junior Loan (or any
interest therein) as an underlying asset of such Securitization Vehicle or, if
applicable, as an asset of any Intervening Trust Vehicle (including, without
limitation, the right to exercise any consent and control rights available to
the holder of a Junior Loan).

 

“Certificates” means any securities
(including all classes thereof) representing beneficial ownership interests in
the Senior Loan or in a pool of mortgage loans including the Senior Loan issued
in connection with a Securitization of the Senior Loan.

 

“Column” means Column Financial, Inc.,
a Delaware corporation, and its successors in interest.

 

“Conduit” has the meaning set forth in Section 16(b) hereof.

 

“Conduit Credit Enhancer” has the meaning
set forth in Section 16(b)(i) hereof.

 

“Conduit Inventory Loan” has the meaning set
forth in Section 16(b)(i) hereof.

 

“Control” means the ownership, directly or
indirectly, in the aggregate of more than fifty percent (50%) of the beneficial
ownership interests of an entity and the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of an
entity, whether through the ability to exercise voting power, by contract or
otherwise. “Controlled by,” “Controlling” and “under common Control with” shall
have the respective correlative meaning thereto.

 

“Cooperation Agreement” means that certain
Cooperation Agreement of even date herewith by and among the Senior Lender, each
Junior Lender, Senior Borrower and each Junior Borrower, as the same may be
amended, replaced, restated, supplemented or otherwise modified from time to
time.

 

“CS” means CS Securities (USA) LLC, a
Delaware limited liability company, and its successors interest.

 

“Deed in Lieu” has the meaning provided in Section 14(b) hereof.

 

“Directing Junior Lender” has the meaning
provided in Section 5(c) hereof.

 

“Directing Senior Lender” has the meaning
provided in Section 5(d) hereof.

 

“Eligibility Requirements” means, with
respect to any Person, that such Person (i) has total assets (in name or
under management) in excess of $650,000,000 and (except with respect to a
pension advisory firm or similar fiduciary) capital/statutory surplus or
shareholder’s equity of $250,000,000 and (ii) is regularly engaged in the
business of making or owning commercial real estate loans (including mezzanine
loans with respect to commercial real estate) or owning or operating commercial
real estate properties.

 

“Enforcement Action” means any
(i) judicial or non-judicial foreclosure proceeding, the exercise of any
power of sale, the taking of a deed or assignment in lieu of foreclosure, the
obtaining of a receiver or the taking of any other enforcement action against
the Premises or any portion thereof, or Senior Borrower, including, without
limitation, the taking of possession or control of the Premises or any portion
thereof, (ii) acceleration of, or demand or action taken in order to
collect, all or any indebtedness secured by the Premises (other than giving
notices of default and statements of overdue amounts) or (iii) exercise of
any right or remedy available to Senior Lender under the Senior Loan Documents,
at law, in equity or otherwise with respect to Senior Borrower and/or the Premises
or any portion thereof.

 

“Equity Collateral” means the equity
interests in Senior Borrower or any Junior Borrower and all other collateral,
products, proceeds, rights and remedies granted or pledged pursuant to any of
the Junior Loan Documents, as the context may require.

 

6

 

“Equity Collateral Enforcement Action” means
any action or proceeding or other exercise of a Junior Lender’s rights and
remedies commenced by such Junior Lender, in law or in equity, or otherwise, in
order to realize upon the Equity Collateral (including, without limitation, an
assignment in lieu of foreclosure or other negotiated settlement in lieu of any
such enforcement action) other than the giving of notices of default and statements
of overdue amounts.

 

“Event of Default” as used herein means
(i) with respect to the Senior Loan and the Senior Loan Documents, any “Event
of Default” (as defined therein) thereunder which has occurred and is
continuing (i.e., has not been
cured by Senior Borrower, waived by Senior Lender (in writing and not through
operation of law) and has not otherwise been or is not then being cured by a
Junior Lender in accordance with the terms of this Agreement or as to which the
cure period available to a Junior Lender hereunder has expired without a cure);
(ii) with respect to the First Mezzanine Loan and the First Mezzanine Loan
Documents, any “Event of Default” (as defined therein) thereunder which has
occurred and is continuing (i.e.,
has not been cured by First Mezzanine Borrower, waived by First Mezzanine
Lender (in writing and not through operation of law) and has not otherwise been
or is not then being cured by a Junior Lender in accordance with the terms of
this Agreement or as to which the cure period available to a Junior Lender
hereunder has expired without a cure); (iii) with respect to the Second
Mezzanine Loan and the Second Mezzanine Loan Documents, any “Event of Default”
(as defined therein) thereunder which has occurred and is continuing (i.e., has not been cured by Second
Mezzanine Borrower, waived by Second Mezzanine Lender (in writing and not
through operation of law) and has not otherwise been or is not then being cured
by a Junior Lender in accordance with the terms of this Agreement or as to
which the cure period available to a Junior Lender hereunder has expired
without a cure); (iv) with respect to the Third Mezzanine Loan and the
Third Mezzanine Loan Documents, any “Event of Default” (as defined therein)
thereunder which has occurred and is continuing (i.e., has not been cured by Third Mezzanine Borrower, waived
by Third Mezzanine Lender (in writing and not through operation of law) and has
not otherwise been or is not then being cured by a Junior Lender in accordance
with the terms of this Agreement or as to which the cure period available to a
Junior Lender hereunder has expired without a cure); (v) with respect to
the Fourth Mezzanine Loan and the Fourth Mezzanine Loan Documents, any “Event
of Default” (as defined therein) thereunder which has occurred and is
continuing (i.e., has not been
cured by Fourth Mezzanine Borrower, waived by Fourth Mezzanine Lender (in
writing and not through operation of law) and has not otherwise been or is not
then being cured by a Junior Lender in accordance with the terms of this
Agreement or as to which the cure period available to a Junior Lender hereunder
has expired without a cure); (vi) with respect to the Fifth Mezzanine Loan
and the Fifth Mezzanine Loan Documents, any “Event of Default” (as defined
therein) thereunder which has occurred and is continuing (i.e., has not been cured by Fifth
Mezzanine Borrower, waived by Fifth Mezzanine Lender (in writing and not
through operation of law) and has not otherwise been or is not then being cured
by a Junior Lender in accordance with the terms of this Agreement or as to
which the cure period available to a Junior Lender hereunder has expired
without a cure), (vii) with respect to the Sixth Mezzanine Loan and the
Sixth Mezzanine Loan Documents, any “Event of Default” (as defined therein)
thereunder which has occurred and is continuing (i.e., has not been cured by Sixth Mezzanine Borrower, waived
by Sixth Mezzanine Lender (in writing and not through operation of law) and has
not otherwise been or is not then being cured by a Junior Lender in accordance
with the terms of this Agreement or as to which the cure period available to a
Junior Lender hereunder has expired without a cure), and (viii) with
respect to the Seventh Mezzanine Loan and the Seventh Mezzanine Loan Documents,
any “Event of Default” (as defined therein) thereunder which has occurred and
is continuing (i.e., has not been
cured by Seventh Mezzanine Borrower, waived by Seventh Mezzanine Lender (in
writing and not through operation of law) and has not otherwise been or is not
then being cured by a Junior Lender in accordance with the terms of this
Agreement or as to which the cure period available to a Junior Lender hereunder
has expired without a cure).

 

“Extended Monetary Cure Period” has the
meaning set forth in Section 12(a)(i) hereof.

 

“Extended Non-Monetary Cure Period” has the
meaning set forth in Section 12(a)(ii) hereof.

 

7

 

“Fifth Mezzanine Borrower” has the meaning
set forth on Schedule 1
attached hereto.

 

“Fifth Mezzanine Cash Management Agreement”
means any cash management agreement executed in connection with, or the cash
management provisions of, the Fifth Mezzanine Loan Documents.

 

“Fifth Mezzanine Lender” has the meaning set
forth in the Recitals hereto.

 

“Fifth Mezzanine Loan” has the meaning set
forth in the Recitals hereto.

 

“Fifth Mezzanine Loan Agreement” has the
meaning set forth in the Recitals
hereto.

 

“Fifth Mezzanine Loan Documents” has the
meaning set forth in the Recitals
hereto.

 

“Fifth Mezzanine Loan Liabilities” means,
collectively, all of the indebtedness, liabilities and obligations of Fifth
Mezzanine Borrower under any Fifth Mezzanine Loan Document, including, without
limitation (i) the principal amount of, and accrued interest on
(including, without limitation, any interest which accrues after the
commencement of any case, proceeding or other action relating to the
bankruptcy, insolvency or reorganization of Fifth Mezzanine Borrower, whether
or not such interest would be allowed in such case, proceeding or action), the
Fifth Mezzanine Loan, (ii) all other indebtedness, obligations and
liabilities of Fifth Mezzanine Borrower to Fifth Mezzanine Lender now existing
or hereafter incurred or created under the Fifth Mezzanine Loan Documents, and
(iii) all other indebtedness, obligations and liabilities of Fifth
Mezzanine Borrower to Fifth Mezzanine Lender now existing or hereafter
incurred, created and arising from or relating to the Fifth Mezzanine Loan,
including, without limitation, any late charges, default interest, prepayment
fees or premiums (including spread maintenance and yield maintenance premiums),
exit fees, advances and post-petition interest.

 

“Fifth Mezzanine Note” has the meaning set
forth in the Recitals hereto.

 

“Fifth Mezzanine Noteholders” has the
meaning provided in the Recitals hereto.

 

“Fifth Mezzanine Pledge Agreement” has the
meaning set forth in the Recitals
hereto.

 

“First Mezzanine Borrower” has the meaning
set forth on Schedule 1
attached hereto.

 

“First Mezzanine Cash Management Agreement”
means any cash management agreement executed in connection with, or the cash
management provisions of, the First Mezzanine Loan Documents.

 

“First Mezzanine Lender” has the meaning set
forth in the Recitals hereto.

 

“First Mezzanine Loan” has the meaning set
forth in the Recitals hereto.

 

“First Mezzanine Loan Agreement” has the
meaning set forth in the Recitals
hereto.

 

“First Mezzanine Loan Documents” has the
meaning set forth in the Recitals
hereto.

 

“First Mezzanine Loan Liabilities” means,
collectively, all of the indebtedness, liabilities and obligations of the First
Mezzanine Borrower under any First Mezzanine Loan Document, including, without
limitation (i) the principal amount of, and accrued interest on (including,
without limitation, any interest which accrues after the commencement of any
case, proceeding or other action relating to the bankruptcy, insolvency or
reorganization of First Mezzanine Borrower, whether or not such interest would
be allowed in such case, proceeding or action), the First Mezzanine Loan,
(ii) all other indebtedness, obligations and liabilities of the First
Mezzanine Borrower to First Mezzanine Lender now existing or hereafter incurred
or created under the First Mezzanine Loan Documents, and (iii) all other
indebtedness, obligations and liabilities of First Mezzanine Borrower to First
Mezzanine Lender now existing or hereafter incurred, created and arising from
or relating to the First Mezzanine Loan, including, without limitation, any late
charges, default interest, prepayment fees or premiums (including spread
maintenance and yield maintenance premiums), exit fees, advances and
post-petition interest.

 

8

 

“First Mezzanine Note” has the meaning set
forth in the Recitals hereto.

 

“First Mezzanine Noteholders” has the
meaning provided in the Recitals hereto.

 

“First Mezzanine Pledge Agreement” has the
meaning set forth in the Recitals
hereto.

 

“Fitch” means Fitch, Inc., and its
successors in interest.

 

“Fourth Mezzanine Borrower” has the meaning
set forth on Schedule 1
attached hereto.

 

“Fourth Mezzanine Cash Management Agreement”
means any cash management agreement executed in connection with, or the cash
management provisions of, the Fourth Mezzanine Loan Documents.

 

“Fourth Mezzanine Lender” has the meaning
set forth in the Recitals hereto.

 

“Fourth Mezzanine Loan” has the meaning set
forth in the Recitals hereto.

 

“Fourth Mezzanine Loan Agreement” has the
meaning set forth in the Recitals
hereto.

 

“Fourth Mezzanine Loan Documents” has the
meaning set forth in the Recitals
hereto.

 

“Fourth Mezzanine Loan Liabilities” means,
collectively, all of the indebtedness, liabilities and obligations of Fourth
Mezzanine Borrower under any Fourth Mezzanine Loan Document, including, without
limitation (i) the principal amount of, and accrued interest on
(including, without limitation, any interest which accrues after the
commencement of any case, proceeding or other action relating to the
bankruptcy, insolvency or reorganization of Fourth Mezzanine Borrower, whether
or not such interest would be allowed in such case, proceeding or action), the
Fourth Mezzanine Loan, (ii) all other indebtedness, obligations and
liabilities of Fourth Mezzanine Borrower to Fourth Mezzanine Lender now
existing or hereafter incurred or created under the Fourth Mezzanine Loan
Documents, and (iii) all other indebtedness, obligations and liabilities
of Fourth Mezzanine Borrower to Fourth Mezzanine Lender now existing or
hereafter incurred, created and arising from or relating to the Fourth
Mezzanine Loan, including, without limitation, any late charges, default
interest, prepayment fees or premiums (including spread maintenance and yield
maintenance premiums), exit fees, advances and post-petition interest.

 

“Fourth Mezzanine Note” has the meaning set
forth in the Recitals hereto.

 

“Fourth Mezzanine Noteholders” has the
meaning provided in the Recitals hereto.

 

“Fourth Mezzanine Pledge Agreement” has the
meaning set forth in the Recitals
hereto.

 

“Ground Lease” shall mean, individually and
collectively, as the context requires, those certain ground leases described on
Schedule 2 hereto.

 

“Ground Lease Default” has the meaning
provided in Section 15(r) hereof.

 

“Guarantor” has the meaning provided in Section 6(b) hereof.

 

“Guaranty Claim” has the meaning provided in
Section 6(b) hereof.

 

“Indemnified Parties” means each Senior
Lender as of the date hereof, and each of its affiliates and their respective
successors and assigns (including any owner or holder of the Senior Note and/or
any owner or holder of any right, title and interest in the Senior Note) (and
also including their respective officers, directors, partners, members,
employees, attorneys, accountants, professionals and agents and each other
person, if any, controlling Senior Lender or any of its affiliates within the
meaning of either Section 15 of the Securities Act of 1933, as amended, or
Section 20 of the Securities Exchange Act of 1934, as amended).

 

“Individual Property” has the meaning set
forth in the Senior Loan Agreement.

 

9

 

“Initial Junior Loan Non-Monetary Cure Period”
has the meaning provided in Section 12(b)(ii).

 

“Intervening Trust Vehicle” shall mean with
respect to any Securitization Vehicle that is a CDO, a trust vehicle or entity
which holds a Junior Loan (or any interest therein) as collateral securing (in
whole or in part) any obligation or security held by such Securitization
Vehicle as collateral for the CDO.

 

“JPMorgan” mean JPMorgan Chase Bank, N.A., a
banking association chartered under the laws of the United States of America,
and its successors in interest.

 

“Junior Borrower” means, collectively, First
Mezzanine Borrower, Second Mezzanine Borrower, Third Mezzanine Borrower, Fourth
Mezzanine Borrower, Fifth Mezzanine Borrower, Sixth Mezzanine Borrower and
Seventh Mezzanine Borrower, unless the context otherwise requires, in which
case it shall mean either First Mezzanine Borrower, Second Mezzanine Borrower,
Third Mezzanine Borrower, Fourth Mezzanine Borrower, Fifth Mezzanine Borrower,
Sixth Mezzanine Borrower or Seventh Mezzanine Borrower.

 

“Junior Borrower Group” has the meaning
provided in Section 11(d)(iii) hereof.

 

“Junior Lender” means, collectively, First
Mezzanine Lender, Second Mezzanine Lender, Third Mezzanine Lender, Fourth
Mezzanine Lender, Fifth Mezzanine Lender, Sixth Mezzanine Borrower and Seventh
Mezzanine Borrower, unless the context otherwise requires, in which case it
shall mean either First Mezzanine Lender, Second Mezzanine Lender, Third
Mezzanine Lender, Fourth Mezzanine Lender, Fifth Mezzanine Lender, Sixth
Mezzanine Borrower or Seventh Mezzanine Borrower, individually. As the context
requires, Junior Lenders shall have the following order of priority:
(i) first, First Mezzanine Lender; (ii) second, Second Mezzanine
Lender; (iii) third, Third Mezzanine Lender; (iv) fourth, Fourth
Mezzanine Lender; (v) fifth, Fifth Mezzanine Lender, (vi) sixth,
Sixth Mezzanine Lender and (vii) seventh, Seventh Mezzanine Lender.

 

“Junior Loan” means, collectively, First
Mezzanine Loan, Second Mezzanine Loan, Third Mezzanine Loan, Fourth Mezzanine
Loan, Fifth Mezzanine Loan, Sixth Mezzanine Borrower and Seventh Mezzanine
Borrower, unless the context otherwise requires, in which case it shall mean
either First Mezzanine Loan, Second Mezzanine Loan, Third Mezzanine Loan,
Fourth Mezzanine Loan, Fifth Mezzanine Loan, Sixth Mezzanine Borrower or
Seventh Mezzanine Borrower, individually.

 

“Junior Loan Agreement” means, collectively,
the First Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement, the
Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan Agreement, the Fifth
Mezzanine Loan Agreement, the Sixth Mezzanine Loan Agreement and the Seventh
Mezzanine Loan Agreement, unless the context otherwise requires, in which case
it shall mean either the First Mezzanine Loan Agreement, the Second Mezzanine
Loan Agreement, the Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan
Agreement, the Fifth Mezzanine Loan Agreement, the Sixth Mezzanine Loan
Agreement or the Seventh Mezzanine Loan Agreement, individually.

 

“Junior Loan Cash Management Agreement”
means, collectively, the First Mezzanine Cash Management Agreement, the Second
Mezzanine Cash Management Agreement, the Third Mezzanine Cash Management
Agreement, the Fourth Mezzanine Cash Management Agreement, the Fifth Mezzanine
Cash Management Agreement, the Sixth Mezzanine Cash Management Agreement and
the Seventh Mezzanine Cash Management Agreement, unless the context otherwise
requires, in which case it shall mean either the First Mezzanine Cash
Management Agreement, the Second Mezzanine Cash Management Agreement, the Third
Mezzanine Cash Management Agreement, the Fourth Mezzanine Cash Management
Agreement, the Fifth Mezzanine Cash Management Agreement, the Sixth Mezzanine
Cash Management Agreement or the Seventh Mezzanine Cash Management Agreement,
individually.

 

10

 

“Junior Loan Default Notice” has the meaning
provided in Section 12(b) hereof.

 

“Junior Loan Documents” means, collectively,
the First Mezzanine Loan Documents, the Second Mezzanine Loan Documents, the
Third Mezzanine Loan Documents, the Fourth Mezzanine Loan Documents, the Fifth
Mezzanine Loan Documents, the Sixth Mezzanine Loan Documents and the Seventh
Mezzanine Loan Documents, unless the context otherwise requires, in which case
it shall mean either the First Mezzanine Loan Documents, the Second Mezzanine
Loan Documents, the Third Mezzanine Loan Documents, the Fourth Mezzanine Loan
Documents, the Fifth Mezzanine Loan Documents, the Sixth Mezzanine Loan
Documents or the Seventh Mezzanine Loan Documents, individually.

 

“Junior Loan Extended Monetary Cure Period”
has the meaning provided in Section 12(b)(i) hereof.

 

“Junior Loan Extended Non-Monetary Cure Period”
has the meaning provided in Section 12(b)(ii) hereof.

 

“Junior Loan Liabilities” means,
collectively, the First Mezzanine Loan Liabilities, the Second Mezzanine Loan
Liabilities, the Third Mezzanine Loan Liabilities, the Fourth Mezzanine Loan
Liabilities, the Fifth Mezzanine Loan Liabilities, the Sixth Mezzanine Loan
Liabilities and the Seventh Mezzanine Loan Liabilities, unless the context
otherwise requires, in which case it shall mean either the First Mezzanine Loan
Liabilities, the Second Mezzanine Loan Liabilities, the Third Mezzanine Loan
Liabilities, the Fourth Mezzanine Loan Liabilities, the Fifth Mezzanine Loan
Liabilities, the Sixth Mezzanine Loan Liabilities, or the Seventh Mezzanine
Loan Liabilities, individually.

 

“Junior Loan Modification” has the meaning
provided in Section 8(b) hereof.

 

“Junior Loan Monetary Cure Period” has the
meaning provided in Section 12(b)(i) hereof.

 

“Junior Loan Non-Monetary Cure Period” has
the meaning provided in Section 12(b)(ii) hereof.

 

“Junior Loan Purchase Option Event” has the
meaning provided in Section 14(c) hereof.

 

“Junior Note” means, collectively, the First
Mezzanine Note, the Second Mezzanine Note, the Third Mezzanine Note, the Fourth
Mezzanine Note, the Fifth Mezzanine Note, the Sixth Mezzanine Note and the
Seventh Mezzanine Note, unless the context otherwise requires, in which case it
shall mean either the First Mezzanine Note, the Second Mezzanine Note, the
Third Mezzanine Note, the Fourth Mezzanine Note, the Fifth Mezzanine Note, the
Sixth Mezzanine Note or the Seventh Mezzanine Note, individually.

 

“Junior Noteholders” shall mean one or more
of the First Mezzanine Noteholders, the Second Mezzanine Noteholders, the Third
Mezzanine Noteholders, the Fourth Mezzanine Noteholders, the Fifth Mezzanine
Noteholders, the Sixth Mezzanine Noteholders and the Seventh Mezzanine
Noteholders.

 

“Junior Purchase Notice” has the meaning
provided in Section 14(c) hereof.

 

“Loan Pledgee” has the meaning set forth in Section 16(a) hereof.

 

“Mezzanine Lease Notice” has the meaning set
forth in Section 15(q) hereof.

 

“Monetary Cure Period” means, with respect
to each Junior Lender, the applicable cure period provided in Section 12(a)(i) for a monetary
default identified in a Senior Loan Default Notice.

 

“Moody’s” means Moody’s Investor
Service, Inc., and its successors in interest.

 

“Mortgage” or “Mortgages” has the meaning assigned to such term in the Senior
Loan Agreement.

 

11

 

“New Lease” means a new or replacement
ground lease which the leasehold mortgagee or its nominee or Mezzanine Nominee
may enter into with the ground lessor upon the termination of the Ground Lease.

 

“Non-Monetary Cure Period” means, with
respect to each Junior Lender, the applicable cure period provided in Section 12(a)(ii) for a
non-monetary default identified in a Senior Loan Default Notice.

 

“Notice” has the meaning provided in Section 18 hereof.

 

“OpCo” shall have the meaning set forth in Section 15(q) hereof.

 

“Optioned Junior Lender” has the meaning
provided in Section 14(c) hereof.

 

“Optioned Junior Loan” has the meaning
provided in Section 14(c) hereof.

 

“Permitted Fund Manager” means any Person
that on the date of determination is not subject to a Proceeding and is either
(i) one of the entities listed on Exhibit L
or any other nationally-recognized manager of investment funds investing in
debt or equity interests relating to commercial real estate, (ii) an
entity that is a Qualified Transferee pursuant to clause (ix)(A), (B),
(C), (D) or (G) of the definition thereof or (iii) any Junior
Lender in each case, which are investing through a fund with or has committed
capital of at least $250,000,000.

 

“Permitted Investment Fund” has the meaning
set forth in the definition of Qualified Transferee.

 

“Person” means any individual, sole proprietorship,
corporation, general partnership, limited partnership, limited liability
company or partnership, joint venture, association, joint stock company, bank,
trust, estate unincorporated organization, any federal, state, county or
municipal government (or any agency or political subdivision thereof) endowment
fund or any other form of entity and any fiduciary acting in such capacity on
behalf of any of the foregoing.

 

“Pledge” has the meaning set forth in Section 16(a) hereof.

 

“Pledge Agreement” means, collectively, the
First Mezzanine Pledge Agreement, the Second Mezzanine Pledge Agreement, the
Third Mezzanine Pledge Agreement, the Fourth Mezzanine Pledge Agreement, the
Fifth Mezzanine Pledge Agreement, the Sixth Mezzanine Pledge Agreement and the Seventh
Mezzanine Pledge Agreement, unless the context otherwise requires, in which
case it shall mean either the First Mezzanine Pledge Agreement, the Second
Mezzanine Pledge Agreement, the Third Mezzanine Pledge Agreement, the Fourth
Mezzanine Pledge Agreement or the Fifth Mezzanine Pledge Agreement, the Sixth
Mezzanine Pledge Agreement or the Seventh Mezzanine Pledge Agreement,
individually.

 

“Policies” has the meaning provided in Section 10(f) hereof.

 

“Premises” has the meaning set forth in the Recitals hereto.

 

“Proceeding” has the meaning set forth in Section 11(d)(i) hereof.

 

“Protective Advances” means all sums
advanced for the purpose of payment of real estate taxes (including special
assessments or payments in lieu of real estate taxes), maintenance costs,
insurance premiums, ground rents or other items (including capital expenses and
leasing costs such as (without limitation) leasing commissions and tenant
improvement allowances) reasonably necessary to protect any of the Premises or
the Separate Collateral, respectively, or any portion thereof (including, but
not limited to, all reasonable attorneys’ fees, costs relating to the entry
upon the Premises or any portion thereof to make repairs and the payment,
purchase, contest or compromise of any encumbrance, charge or lien which in the
judgment of Senior Lender or the applicable Senior Junior Lender appears to be
prior or superior to the Senior Loan Documents or the applicable Senior Junior
Loan Documents) or the Separate Collateral or any portion thereof,
respectively, from forfeiture, casualty, loss or waste or 

 

12

 

to protect, preserve or defend the lien of
the Senior Loan Documents or any of the Junior Loan Documents, as applicable,
including, with respect to a Junior Loan, amounts advanced by a Junior Lender
to effect a cure in accordance with Section 12
hereof.

 

“Purchase Notice” has the meaning set forth
in Section 14(a) hereof.

 

“Purchase Option Event” has the meaning set
forth in Section 14(a) hereof.

 

“Qualified Transferee” means
(i) JPMorgan or an Affiliate of JPMorgan, (ii) CS or an Affiliate of
CS, (iii) BofA or an Affiliate of BofA, (iv) HCP, Inc., a
Maryland corporation, or an Affiliate of HCP, Inc. and (v) one or
more of the following:

 

(A)          a real estate investment trust, bank,
saving and loan association, investment bank, insurance company, trust company,
commercial credit corporation, pension plan, pension fund or pension advisory
firm, mutual fund, government entity or plan, provided
that any such Person referred to in this clause (A) satisfies
the Eligibility Requirements;

 

(B)           an investment company, money
management firm or “qualified institutional buyer” within the meaning of
Rule 144A under the Securities Act of 1933, as amended, or an
institutional “accredited investor” within the meaning of Regulation D
under the Securities Act of 1933, as amended, provided that any such Person
referred to in this clause (B) satisfies
the Eligibility Requirements;

 

(C)           an institution substantially similar
to any of the foregoing entities described in clause (v)(A),
(v)(B) or (v)(F) that satisfies the Eligibility
Requirements;

 

(D)          any entity Controlled by, Controlling
or under common Control with any of the entities described in clause (v)(A), (v)(B) or (v)(C) above or clauses (v)(F) or
(iv)(G) below;

 

(E)           a Qualified Trustee (or in the case
of a CDO, a single purpose bankruptcy remote entity which contemporaneously
assigns or pledges its interest in a Junior Loan, or a participation interest
therein (or any portion thereof) to a Qualified Trustee) in connection with
(aa) a securitization of, (bb) the creation of collateralized debt obligations
(“CDO”) secured by, or (cc) a
financing through an “owner trust” of, a Junior Loan or any interest therein
(any of the foregoing, a “Securitization
Vehicle”), provided
that (1) one or more classes of securities issued by such Securitization
Vehicle is initially rated at least investment grade by each of the Rating
Agencies which assigned a rating to one or more classes of securities issued in
connection with a Securitization (it being understood that with respect to any
Rating Agency that assigned such a rating to the securities issued by such
Securitization Vehicle, a Rating Agency Confirmation will not be required in
connection with a transfer of the Junior Loan or any interest therein to such
Securitization Vehicle (except that if one or more classes of securities issued
in connection with a Securitization is rated by Moody’s, the transferee may not
rely on this clause (1) with respect to Moody’s); (2) in the
case of a Securitization Vehicle that is not a CDO, the special servicer of
such Securitization Vehicle has the Required Special Servicer Rating at the
time of Transfer and the related transaction documents for such Securitization
Vehicle require that any successor have the Required Special Servicer Rating
(such entity, an “Approved Servicer”)
and such Approved Servicer is required to service and administer such Junior
Loan or any interest therein in accordance with servicing arrangements for the
assets held by the Securitization Vehicle which require that such Approved
Servicer act in accordance with a servicing standard notwithstanding any
contrary direction or instruction from any other Person; or (3) in the case
of a Securitization Vehicle that is a CDO, the CDO Asset Manager and, if
applicable, each Intervening Trust Vehicle that is not administered and managed
by a CDO Asset Manager which is a Qualified Transferee, are each Qualified
Transferees under clause (v)(A),
(B), (C), (D), (F) or (G) of this definition;

 

13

 

(F)           an investment fund, limited liability
company, limited partnership or general partnership (a “Permitted Investment Fund”) where a
Permitted Fund Manager acts as the general partner, managing member or fund
manager and at least fifty percent (50%) of the equity interests in such
investment vehicle are owned, directly or indirectly, by one or more of the
following: a Qualified Transferee, an institutional “accredited investor”,
within the meaning of Regulation D promulgated under the Securities Act of
1933, as amended, and/or a “qualified institutional buyer” or both within the
meaning of Rule 144A promulgated under the Securities Exchange Act of 1934,
as amended, provided such institutional “accredited investors” or “qualified
institutional buyers” that are used to satisfy the 50% test set forth above in
this clause (F) satisfy
the financial tests in clause (i) of
the definition of Eligibility Requirements; or

 

(G)           any Person for which the Rating
Agencies have issued a Rating Agency Confirmation with respect to such
Transfer.

 

“Qualified Trustee” means (i) a
corporation, national bank, national banking association or a trust company,
organized and doing business under the laws of any state or the United States
of America, authorized under such laws to exercise corporate trust powers and
to accept the trust conferred, having a combined capital and surplus of at
least $100,000,000 and subject to supervision or examination by federal or
state authority, (ii) an institution insured by the Federal Deposit
Insurance Corporation or (iii) an institution whose long-term senior
unsecured debt is rated either of the then in effect top two (2) rating
categories of S&P and either Fitch or Moody’s (provided, however,
if the Senior Loan has been securitized, the rating requirement of any agency
not a Rating Agency will be disregarded).

 

“Rated Final Distribution Date” has the
meaning set forth in the pooling and servicing agreement pursuant to which the
Senior Loan is Securitized and serviced until such time that the Senior Loan is
no longer subject to such pooling and servicing agreement.

 

“Rating Agencies” shall mean, prior to the
final Securitization of the Senior Loan, collectively, S&P, Moody’s and
Fitch, and any other nationally- recognized statistical rating agency which has
been designated by Senior Lender and, after the Securitization of the Senior
Loan, shall mean any of the foregoing that have rated any of the Certificates.

 

“Rating Agency Confirmation” means a written
affirmation from each of the Rating Agencies that the credit rating of the
Certificates assigned by such Rating Agency immediately prior to the occurrence
of the event with respect to which such Rating Agency Confirmation is sought
will not be qualified, downgraded or withdrawn as a result of the occurrence of
such event. In the event that no Certificates are outstanding or the Senior
Loan is not part of a Securitization, any action that would otherwise require a
Rating Agency Confirmation shall instead require the consent of Senior Lender,
which consent shall not be unreasonably withheld or delayed. All fees and
expenses of the Rating Agencies incurred in connection with any Rating Agency
Confirmation required pursuant to this Agreement as the result of a request or
action of a Junior Lender shall be paid by such Junior Lender.

 

“Redirection Notice” has the meaning set
forth in Section 16(a) hereof.

 

“Repo Agreement” has the meaning set forth
in Section 16(a) hereof.

 

“Required Special Servicer Rating” means a
special servicer that (i) has a rating of “CSS1” in the case of Fitch,
(ii) is on S&P’s Select Servicer List as a US Commercial Mortgage
Special Servicer in the case of S&P and (iii) in the case of Moody’s,
such special servicer is acting as special servicer for a loan in a commercial
mortgage loan securitization that was rated by Moody’s within the twelve
(12) month period prior to the date of determination and Moody’s has not
downgraded or withdrawn the then-current rating on any class of commercial
mortgage securities or placed any class of commercial mortgage securities on
watch citing the continuation of such special servicer as special servicer of
such commercial mortgage securities. The requirement of any agency not a Rating
Agency shall be disregarded.

 

14

 

“Resized Components” has the meaning set
forth in Section 15(m) hereof.

 

“Resizing Date” has the meaning set forth in
Section 15(m) hereof.

 

“Resizing Notice” has the meaning set forth
in Section 15(m) hereof.

 

“S&P” means Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc., and its
successors in interest.

 

“Second Mezzanine Borrower” has the meaning
set forth on Schedule 1
attached hereto.

 

“Second Mezzanine Cash Management Agreement”
means any cash management agreement executed in connection with, or the cash
management provisions of, the Second Mezzanine Loan Documents.

 

“Second Mezzanine Lender” has the meaning
set forth in the Recitals hereto.

 

“Second Mezzanine Loan” has the meaning set
forth in the Recitals hereto.

 

“Second Mezzanine Loan Agreement” has the
meaning set forth in the Recitals
hereto.

 

“Second Mezzanine Loan Documents” has the
meaning set forth in the Recitals
hereto.

 

“Second Mezzanine Loan Liabilities” means,
collectively, all of the indebtedness, liabilities and obligations of Second
Mezzanine Borrower under any Second Mezzanine Loan Document, including, without
limitation (i) the principal amount of, and accrued interest on
(including, without limitation, any interest which accrues after the
commencement of any case, proceeding or other action relating to the
bankruptcy, insolvency or reorganization of Second Mezzanine Borrower, whether
or not such interest would be allowed in such case, proceeding or action), the
Second Mezzanine Loan, (ii) all other indebtedness, obligations and
liabilities of Second Mezzanine Borrower to Second Mezzanine Lender now
existing or hereafter incurred or created under the Second Mezzanine Loan
Documents, and (iii) all other indebtedness, obligations and liabilities
of Second Mezzanine Borrower to Second Mezzanine Lender now existing or
hereafter incurred, created and arising from or relating to the Second Mezzanine
Loan, including, without limitation, any late charges, default interest,
prepayment fees or premiums (including spread maintenance and yield maintenance
premiums), exit fees, advances and post-petition interest.

 

“Second Mezzanine Note” has the meaning set
forth in the Recitals hereto.

 

“Second Mezzanine Noteholders” has the
meaning provided in the Recitals hereto.

 

“Second Mezzanine Pledge Agreement” has the
meaning set forth in the Recitals
hereto.

 

“Securitization” has the meaning set forth
in the Senior Loan Agreement.

 

“Securitization Vehicle” has the meaning set
forth in the definition of the term “Qualified Transferee”.

 

“Senior Borrower” has the meaning set forth
on Schedule 1 attached
hereto.

 

“Senior Junior Borrowers” means
(i) with respect to the First Mezzanine Loan, none of the other Junior
Borrowers; (ii) with respect to the Second Mezzanine Loan, the First
Mezzanine Borrower; (iii) with respect to the Third Mezzanine Loan, the
First Mezzanine Borrower and the Second Mezzanine Borrower; (iv) with
respect to the Fourth Mezzanine Loan, the First Mezzanine Borrower, the Second
Mezzanine Borrower, and the Third Mezzanine Borrower; (v) with respect to
the Fifth Mezzanine Loan, the First Mezzanine Borrower, the Second Mezzanine
Borrower, the Third Mezzanine Borrower and the Fourth Mezzanine Borrower,
(vi) with respect to the Sixth Mezzanine Loan, the First Mezzanine
Borrower, the Second Mezzanine Borrower, the Third Mezzanine Borrower, the
Fourth Mezzanine Borrower and the Fifth Mezzanine Borrower and (vii) with
respect to the 

 

15

 

Seventh Mezzanine Loan, the First Mezzanine
Borrower, the Second Mezzanine Borrower, the Third Mezzanine Borrower, the
Fourth Mezzanine Borrower, the Fifth Mezzanine Borrower and the Sixth Mezzanine
Borrower.

 

“Senior Junior Lenders” means (i) with
respect to the First Mezzanine Loan, none of the other Junior Lenders;
(ii) with respect to the Second Mezzanine Loan, First Mezzanine Lender;
(iii) with respect to the Third Mezzanine Loan, the First Mezzanine Lender
and the Second Mezzanine Lender; (iv) with respect to the Fourth Mezzanine
Loan, the First Mezzanine Lender, the Second Mezzanine Lender, and the Third
Mezzanine Lender; (v) with respect to the Fifth Mezzanine Loan, the First
Mezzanine Lender, the Second Mezzanine Lender, the Third Mezzanine Lender and
the Fourth Mezzanine Lender, (vi) with respect to the Sixth Mezzanine
Loan, the First Mezzanine Lender, the Second Mezzanine Lender, the Third
Mezzanine Lender, the Fourth Mezzanine Lender and the Fifth Mezzanine Lender
and (vii) with respect to the Seventh Mezzanine Loan, the First Mezzanine
Lender, the Second Mezzanine Lender, the Third Mezzanine Lender, the Fourth
Mezzanine Lender, the Fifth Mezzanine Lender and the Sixth Mezzanine Lender. As
the context requires, Senior Junior Lenders shall have the following order of
priority: (i) first, the First Mezzanine Lender; (ii) second, the
Second Mezzanine Lender; (iii) third, the Third Mezzanine Lender; (iv) fourth,
the Fourth Mezzanine Lender; (v) fifth, the Fifth Mezzanine Lender,
(vi) sixth, the Sixth Mezzanine Lender and (vii) seventh, the Seventh
Mezzanine Lender.

 

“Senior Junior Loan Agreements” means
(i) with respect to the First Mezzanine Loan, none of the other Junior
Loan Agreements; (ii) with respect to the Second Mezzanine Loan, the First
Mezzanine Loan Agreement; (iii) with respect to the Third Mezzanine Loan,
the First Mezzanine Loan Agreement and the Second Mezzanine Loan Agreement;
(iv) with respect to the Fourth Mezzanine Loan, the First Mezzanine Loan
Agreement, the Second Mezzanine Loan Agreement and the Third Mezzanine Loan
Agreement; (v) with respect to the Fifth Mezzanine Loan, the First
Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement, the Third
Mezzanine Loan Agreement and the Fourth Mezzanine Loan Agreement,
(vi) with respect to the Sixth Mezzanine Loan, the First Mezzanine Loan
Agreement, the Second Mezzanine Loan Agreement, the Third Mezzanine Loan
Agreement, the Fourth Mezzanine Loan Agreement and the Fifth Mezzanine Loan
Agreement, (vii) with respect to the Seventh Mezzanine Loan, the First
Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement, the Third
Mezzanine Loan Agreement, the Fourth Mezzanine Loan Agreement, the Fifth Mezzanine
Loan Agreement and the Sixth Mezzanine Loan Agreement. As the context requires,
the Senior Junior Loan Agreements shall have the following order of priority:
(i) first, the First Mezzanine Loan Agreement; (ii) second, the
Second Mezzanine Loan Agreement; (iii) third, the Third Mezzanine Loan
Agreement; (iv) fourth, the Fourth Mezzanine Loan Agreement;
(v) fifth, the Fifth Mezzanine Loan Agreement, (vi) sixth, the Sixth
Mezzanine Loan Agreement and (vii) seventh, the Seventh Mezzanine Loan
Agreement.

 

“Senior Junior Loan Cash Management Agreements”
means (i) with respect to the First Mezzanine Loan, none of the other
Junior Loan Cash Management Agreements; (ii) with respect to the Second
Mezzanine Loan, the First Mezzanine Cash Management Agreement; (iii) with
respect to the Third Mezzanine Loan, the First Mezzanine Cash Management
Agreement and the Second Mezzanine Cash Management Agreement; (iv) with
respect to the Fourth Mezzanine Loan, the First Mezzanine Cash Management
Agreement, the Second Mezzanine Cash Management Agreement and the Third
Mezzanine Cash Management Agreement; (v) with respect to the Fifth
Mezzanine Loan, the First Mezzanine Cash Management Agreement, the Second
Mezzanine Cash Management Agreement, the Third Mezzanine Cash Management
Agreement and the Fourth Mezzanine Cash Management Agreement; (vi) with
respect to the Sixth Mezzanine Loan, the First Mezzanine Cash Management
Agreement, the Second Mezzanine Cash Management Agreement, the Third Mezzanine
Cash Management Agreement, the Fourth Mezzanine Cash Management Agreement and
the Fifth Mezzanine Cash Management Agreement; (vii) with respect to the
Seventh Mezzanine Loan, the First 

 

16

 

Mezzanine Cash Management Agreement, the
Second Mezzanine Cash Management Agreement, the Third Mezzanine Cash Management
Agreement, the Fourth Mezzanine Cash Management Agreement the Fifth Mezzanine
Cash Management Agreement and the Sixth Mezzanine Cash Management Agreement. As
the context requires, the Senior Junior Loan Cash Management Agreements shall
have the following order of priority: (i) first, the First Mezzanine Cash
Management Agreement; (ii) second, the Second Mezzanine Cash Management
Agreement; (iii) third, the Third Mezzanine Cash Management Agreement;
(iv) fourth, the Fourth Mezzanine Cash Management Agreement;
(v) fifth, the Fifth Mezzanine Cash Management Agreement; (vi) sixth,
the Sixth Mezzanine Cash Management Agreement and (vii) seventh, the
Seventh Mezzanine Cash Management Agreement.

 

“Senior Junior Loan Documents” means
(i) with respect to the First Mezzanine Loan, none of the other Junior
Loan Documents; (ii) with respect to the Second Mezzanine Loan, the First
Mezzanine Loan Documents; (iii) with respect to the Third Mezzanine Loan,
the First Mezzanine Loan Documents and the Second Mezzanine Loan Documents;
(iv) with respect to the Fourth Mezzanine Loan, the First Mezzanine Loan
Documents, the Second Mezzanine Loan Documents and the Third Mezzanine Loan
Documents; (v) with respect to the Fifth Mezzanine Loan, the First
Mezzanine Loan Documents, the Second Mezzanine Loan Documents, the Third
Mezzanine Loan Documents and the Fourth Mezzanine Loan Documents,
(vi) with respect to the Sixth Mezzanine Loan, the First Mezzanine Loan
Documents, the Second Mezzanine Loan Documents, the Third Mezzanine Loan
Documents, the Fourth Mezzanine Loan Documents and the Fifth Mezzanine Loan
Documents and (vii) with respect to the Seventh Mezzanine Loan, the First
Mezzanine Loan Documents, the Second Mezzanine Loan Documents, the Third
Mezzanine Loan Documents, the Fourth Mezzanine Loan Documents, the Fifth
Mezzanine Loan Documents and the Sixth Mezzanine Loan Documents. As the context
requires, the Senior Junior Loan Documents shall have the following order of
priority: (i) first, the First Mezzanine Loan Documents; (ii) second,
the Second Mezzanine Loan Documents; (iii) third, the Third Mezzanine Loan
Documents; (iv) fourth, the Fourth Mezzanine Loan Documents;
(v) fifth, the Fifth Mezzanine Loan Documents; (vi) sixth, the Sixth
Mezzanine Loan Documents and (vii) seventh, the Seventh Mezzanine Loan
Documents.

 

“Senior Junior Loan Liabilities” means
(i) with respect to the First Mezzanine Loan, none of the other Junior
Loan Liabilities; (ii) with respect to the Second Mezzanine Loan, the
First Mezzanine Loan Liabilities; (iii) with respect to the Third
Mezzanine Loan, the First Mezzanine Loan Liabilities and the Second Mezzanine
Loan Liabilities; (iv) with respect to the Fourth Mezzanine Loan, the
First Mezzanine Loan Liabilities, the Second Mezzanine Loan Liabilities, and
the Third Mezzanine Loan Liabilities; (v) with respect to the Fifth
Mezzanine Loan, the First Mezzanine Loan Liabilities, the Second Mezzanine Loan
Liabilities, the Third Mezzanine Loan Liabilities and the Fourth Mezzanine Loan
Liabilities, (vi) with respect to the Sixth Mezzanine Loan, the First
Mezzanine Loan Liabilities, the Second Mezzanine Loan Liabilities, the Third
Mezzanine Loan Liabilities, the Fourth Mezzanine Loan Liabilities and the Fifth
Mezzanine Loan Liabilities and (vii) with respect to the Seventh Mezzanine
Loan, the First Mezzanine Loan Liabilities, the Second Mezzanine Loan
Liabilities, the Third Mezzanine Loan Liabilities, the Fourth Mezzanine Loan
Liabilities, the Fifth Mezzanine Loan Liabilities and the Sixth Mezzanine Loan
Liabilities. As the context requires, the Senior Junior Loan Liabilities shall
have the following order of priority: (i) first, the First Mezzanine Loan
Liabilities; (ii) second, the Second Mezzanine Loan Liabilities;
(iii) third, the Third Mezzanine Loan Liabilities; (iv) fourth, the
Fourth Mezzanine Loan Liabilities; (v) fifth, the Fifth Mezzanine Loan
Liabilities; (vi) sixth, the Sixth Mezzanine Loan Liabilities and (vii) seventh,
the Seventh Mezzanine Loan Liabilities.

 

“Senior Junior Loan Modification” has the
meaning provided in Section 8(c) hereof.

 

“Senior Junior Loan Purchase Price” has the
meaning provided in Section 14(a).

 

17

 

“Senior Junior Loans” means (i) with
respect to the First Mezzanine Loan, none of the other Junior Loans;
(ii) with respect to the Second Mezzanine Loan, First Mezzanine Loan;
(iii) with respect to the Third Mezzanine Loan, the First Mezzanine Loan
and the Second Mezzanine Loan; (iv) with respect to the Fourth Mezzanine
Loan, the First Mezzanine Loan, the Second Mezzanine Loan and the Third
Mezzanine Loan; (v) with respect to the Fifth Mezzanine Loan, the First
Mezzanine Loan, the Second Mezzanine Loan, the Third Mezzanine Loan and the
Fourth Mezzanine Loan; (vi) with respect to the Sixth Mezzanine Loan, the
First Mezzanine Loan, the Second Mezzanine Loan, the Third Mezzanine Loan, the
Fourth Mezzanine Loan and the Fifth Mezzanine Loan and (vii) with respect
to the Seventh Mezzanine Loan, the First Mezzanine Loan, the Second Mezzanine
Loan, the Third Mezzanine Loan, the Fourth Mezzanine Loan, the Fifth Mezzanine
Loan and the Sixth Mezzanine Loan. As the context requires, Senior Junior Loans
shall have the following order of priority: (i) first, First Mezzanine
Loan; (ii) second, Second Mezzanine Loan; (iii) third, Third
Mezzanine Loan; (iv) fourth, Fourth Mezzanine Loan; (v) fifth, the
Fifth Mezzanine Loan, (vi) sixth, the Sixth Mezzanine Loan and
(vii) seventh, the Seventh Mezzanine Loan.

 

“Senior Lender” has the meaning set forth in
the Recitals hereto, and if the
Senior Loan has been split into two (2) or more loans in connection with
the removal of an Individual Property or Properties from the Senior Loan in
accordance with Section 15(n) hereof,
the holder of each such split loan; provided
notice thereof has been given to each Junior Lender and provided that each such
holder shall have assumed the obligations of Senior Lender hereunder in
writing.

 

“Senior Loan” has the meaning set forth in
the Recitals hereto.

 

“Senior Loan Agreement” has the meaning set
forth in the Recitals hereto.

 

“Senior Loan Cash Management Agreement”
means any cash management agreement or agreements executed in connection with,
or cash management provisions of, the Senior Loan Documents.

 

“Senior Loan Default Notice” has the meaning
set forth in Section 12(a) hereof.

 

“Senior Loan Documents” has the meaning set
forth in the Recitals hereto.

 

“Senior Loan Liabilities” shall mean,
collectively, all of the indebtedness, liabilities and obligations of Borrower
under any Senior Loan Document, including, without limitation (i) the
principal amount of, and accrued interest on (including, without limitation,
any interest which accrues after the commencement of any case, proceeding or
other action relating to the bankruptcy, insolvency or reorganization of
Borrower, whether or not such interest would be allowed in such case,
proceeding or action), the Senior Loan, (ii) all other indebtedness,
obligations and liabilities of Borrower to Senior Lender now existing or
hereafter incurred or created under the Senior Loan Documents, and
(iii) all other indebtedness, obligations and liabilities of Borrower to
Senior Lender now existing or hereafter incurred, created and arising from or
relating to the Senior Loan, including, without limitation, any late charges,
default interest, prepayment fees or premiums (including spread maintenance and
yield maintenance premiums), exit fees, advances and post-petition interest.

 

“Senior Loan Modification” has the meaning
set forth in Section 8(a) hereof.

 

“Senior Loan Purchase Price” has the meaning
set forth in Section 14(a) hereof.

 

“Senior Note” has the meaning set forth in
the Recitals hereto.

 

“Senior Noteholders” has the meaning
provided in the Recitals hereto.

 

“Separate Collateral” means, with respect to
each Junior Loan, collectively, (i) the Equity Collateral, (ii) the
accounts (and monies therein from time to time) established pursuant to each of
the Junior Loan Cash Management Agreements, and (iii) any other collateral
or benefits, including guarantees or interest rate cap or hedging agreements,
given as security for each of the Junior Loans 

 

18

 

pursuant to the Junior Loan Documents, in
each case not constituting security for the Senior Loan or any Senior Junior
Loans.

 

“Separate Collateral Enforcement Action”
means any action or proceeding or other exercise of a Junior Lender’s rights
and remedies under its respective Junior Loan Documents, at law or in equity,
or otherwise, in order to realize upon any of its respective Separate
Collateral (including, without limitation, an assignment in lieu of foreclosure
or other negotiated settlement in lieu of any such enforcement action).

 

“Seventh Mezzanine Borrower” has the meaning
set forth on Schedule 1
attached hereto.

 

“Seventh Mezzanine Cash Management Agreement”
means any cash management agreement executed in connection with, or the cash
management provisions of, the Seventh Mezzanine Loan Documents.

 

“Seventh Mezzanine Lender” has the meaning
set forth in the Recitals hereto.

 

“Seventh Mezzanine Loan” has the meaning set
forth in the Recitals hereto.

 

“Seventh Mezzanine Loan Agreement” has the
meaning set forth in the Recitals
hereto.

 

“Seventh Mezzanine Loan Documents” has the
meaning set forth in the Recitals
hereto.

 

“Seventh Mezzanine Loan Liabilities” means,
collectively, all of the indebtedness, liabilities and obligations of Seventh
Mezzanine Borrower under any Seventh Mezzanine Loan Document, including,
without limitation (i) the principal amount of, and accrued interest on
(including, without limitation, any interest which accrues after the
commencement of any case, proceeding or other action relating to the bankruptcy,
insolvency or reorganization of Seventh Mezzanine Borrower, whether or not such
interest would be allowed in such case, proceeding or action), the Seventh
Mezzanine Loan, (ii) all other indebtedness, obligations and liabilities
of Seventh Mezzanine Borrower to Seventh Mezzanine Lender now existing or
hereafter incurred or created under the Seventh Mezzanine Loan Documents, and
(iii) all other indebtedness, obligations and liabilities of Seventh
Mezzanine Borrower to Seventh Mezzanine Lender now existing or hereafter
incurred, created and arising from or relating to the Seventh Mezzanine Loan,
including, without limitation, any late charges, default interest, prepayment
fees or premiums (including spread maintenance and yield maintenance premiums),
exit fees, advances and post-petition interest.

 

“Seventh Mezzanine Note” has the meaning set
forth in the Recitals hereto.

 

“Seventh Mezzanine Noteholders” has the
meaning provided in the Recitals hereto.

 

“Seventh Mezzanine Pledge Agreement” has the
meaning set forth in the Recitals
hereto.

 

“Sixth Mezzanine Borrower” has the meaning
set forth on Schedule 1
attached hereto.

 

“Sixth Mezzanine Cash Management Agreement”
means any cash management agreement executed in connection with, or the cash
management provisions of, the Sixth Mezzanine Loan Documents.

 

“Sixth Mezzanine Lender” has the meaning set
forth in the Recitals hereto.

 

“Sixth Mezzanine Loan” has the meaning set
forth in the Recitals hereto.

 

“Sixth Mezzanine Loan Agreement” has the
meaning set forth in the Recitals
hereto.

 

“Sixth Mezzanine Loan Documents” has the
meaning set forth in the Recitals
hereto.

 

“Sixth Mezzanine Loan Liabilities” means,
collectively, all of the indebtedness, liabilities and obligations of Sixth
Mezzanine Borrower under any Sixth Mezzanine Loan Document, including, without
limitation (i) the principal amount of, and accrued interest on
(including, without limitation,

 

19

 

any interest which accrues after the
commencement of any case, proceeding or other action relating to the
bankruptcy, insolvency or reorganization of Sixth Mezzanine Borrower, whether
or not such interest would be allowed in such case, proceeding or action), the
Sixth Mezzanine Loan, (ii) all other indebtedness, obligations and
liabilities of Sixth Mezzanine Borrower to Sixth Mezzanine Lender now existing
or hereafter incurred or created under the Sixth Mezzanine Loan Documents, and
(iii) all other indebtedness, obligations and liabilities of Sixth
Mezzanine Borrower to Sixth Mezzanine Lender now existing or hereafter
incurred, created and arising from or relating to the Sixth Mezzanine Loan,
including, without limitation, any late charges, default interest, prepayment
fees or premiums (including spread maintenance and yield maintenance premiums),
exit fees, advances and post-petition interest.

 

“Sixth Mezzanine Note” has the meaning set
forth in the Recitals hereto.

 

“Sixth Mezzanine Noteholders” has the meaning
provided in the Recitals hereto.

 

“Sixth Mezzanine Pledge Agreement” has the
meaning set forth in the Recitals
hereto.

 

“South Carolina Management Agreement” shall
mean, collectively and individually as the context shall require, those certain
Management Agreements, each dated as of the closing date of the Senior Loan,
entered into with respect to each Individual Property that is located in the
State of South Carolina, between the operator of a Property located in South
Carolina and HCR III Healthcare, LLC, a Delaware limited liability
company, as the master tenant.

 

“SPE Constituent Entity” means any entity
required to be a single purpose entity pursuant to the terms of the Senior Loan
Documents (but excluding any Junior Borrower).

 

“Subordinate Junior Borrowers” means
(i) with respect to the First Mezzanine Loan, the Second Mezzanine
Borrower, the Third Mezzanine Borrower, the Fourth Mezzanine Borrower, the
Fifth Mezzanine Borrower, the Sixth Mezzanine Borrower and the Seventh
Mezzanine Borrower; (ii) with respect to the Second Mezzanine Loan, the
Third Mezzanine Borrower, the Fourth Mezzanine Borrower, the Fifth Mezzanine
Borrower, the Sixth Mezzanine Borrower and the Seventh Mezzanine Borrower;
(iii) with respect to the Third Mezzanine Loan, the Fourth Mezzanine
Borrower, the Fifth Mezzanine Borrower, the Sixth Mezzanine Borrower and the
Seventh Mezzanine Borrower; (iv) with respect to the Fourth Mezzanine
Loan, the Fifth Mezzanine Borrower, the Sixth Mezzanine Borrower and the
Seventh Mezzanine Borrower; (v) with respect to the Fifth Mezzanine Loan,
the Sixth Mezzanine Borrower and the Seventh Mezzanine Borrower; (vi) with
respect to the Sixth Mezzanine Loan, the Seventh Mezzanine Borrower and
(vii) with respect to the Seventh Mezzanine Loan, none of the other Junior
Borrowers. As the context requires, the Subordinate Junior Borrowers shall have
the following order of priority: (i) first, the First Mezzanine Borrower;
(ii) second, the Second Mezzanine Borrower; (iii) third, the Third Mezzanine
Borrower; (iv) fourth, the Fourth Mezzanine Borrower; (v) fifth, the
Fifth Mezzanine Borrower; (vi) sixth, the Sixth Mezzanine Borrower and
(vii) seventh, the Seventh Mezzanine Borrower.

 

“Subordinate Junior Lenders” means
(i) with respect to the First Mezzanine Loan, the Second Mezzanine Lender,
the Third Mezzanine Lender, the Fourth Mezzanine Lender, the Fifth Mezzanine
Lender, the Sixth Mezzanine Lender and the Seventh Mezzanine Lender;
(ii) with respect to the Second Mezzanine Loan, the Third Mezzanine Lender,
the Fourth Mezzanine Lender, the Fifth Mezzanine Lender, the Sixth Mezzanine
Lender and the Seventh Mezzanine Lender; (iii) with respect to the Third
Mezzanine Loan, the Fourth Mezzanine Lender, the Fifth Mezzanine Lender, the
Sixth Mezzanine Lender and the Seventh Mezzanine Lender; (iv) with respect
to the Fourth Mezzanine Loan, the Fifth Mezzanine Lender the Sixth Mezzanine
Lender and the Seventh Mezzanine Lender; (v) with respect to the Fifth
Mezzanine Loan, the Sixth Mezzanine Lender and the Seventh Mezzanine Lender;
(vi) with respect to the Sixth Mezzanine Loan, the Seventh Mezzanine
Lender and (vii) with respect to the Seventh Mezzanine Loan, none of the
other Junior Lenders. As the context requires, the Subordinate Junior Lenders
shall have the following order of priority: (i) first, the First Mezzanine

 

20

 

Lender; (ii) second, the Second
Mezzanine Lender; (iii) third, the Third Mezzanine Lender;
(iv) fourth, the Fourth Mezzanine Lender; (v) fifth, the Fifth
Mezzanine Lender; (vi) sixth, the Sixth Mezzanine Lender and
(vii) seventh, the Seventh Mezzanine Lender.

 

“Subordinate Junior Loan Agreements” means
(i) with respect to the First Mezzanine Loan, the Second Mezzanine Loan
Agreement, the Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan
Agreement, the Fifth Mezzanine Loan Agreement, the Sixth Mezzanine Loan
Agreement and the Seventh Mezzanine Loan Agreement; (ii) with respect to
the Second Mezzanine Loan, the Third Mezzanine Loan Agreement, the Fourth
Mezzanine Loan Agreement, the Fifth Mezzanine Loan Agreement, the Sixth
Mezzanine Loan Agreement and the Seventh Mezzanine Loan Agreement;
(iii) with respect to the Third Mezzanine Loan, the Fourth Mezzanine Loan
Agreement, the Fifth Mezzanine Loan Agreement, the Sixth Mezzanine Loan
Agreement and the Seventh Mezzanine Loan Agreement; (iv) with respect to
the Fourth Mezzanine Loan, the Fifth Mezzanine Loan Agreement, the Sixth
Mezzanine Loan Agreement and the Seventh Mezzanine Loan Agreement; (v) with
respect to the Fifth Mezzanine Loan, the Sixth Mezzanine Loan Agreement and the
Seventh Mezzanine Loan Agreement; (vi) with respect to the Sixth Mezzanine
Loan, the Seventh Mezzanine Loan Agreement and (vii) with respect to the
Seventh Mezzanine Loan, none of the other Junior Loan Agreements. As the
context requires, the Subordinate Junior Loan Agreements shall have the
following order of priority: (i) first, the First Mezzanine Loan
Agreement; (ii) second, the Second Mezzanine Loan Agreement; (iii) third,
the Third Mezzanine Loan Agreement; (iv) fourth, the Fourth Mezzanine Loan
Agreement; (v) fifth, the Fifth Mezzanine Loan Agreement, (vi) sixth,
the Sixth Mezzanine Loan Agreement and (vii) seventh, the Seventh
Mezzanine Loan Agreement.

 

“Subordinate Junior Loan Cash Management Agreements”
means (i) with respect to the First Mezzanine Loan, the Second Mezzanine
Cash Management Agreement, the Third Mezzanine Cash Management Agreement, the
Fourth Mezzanine Cash Management Agreement the Fifth Mezzanine Cash Management
Agreement, the Sixth Mezzanine Cash Management Agreement and the Seventh
Mezzanine Cash Management Agreement; (ii) with respect to the Second
Mezzanine Loan, the Third Mezzanine Cash Management Agreement, the Fourth
Mezzanine Cash Management Agreement, the Fifth Mezzanine Cash Management
Agreement, the Sixth Mezzanine Cash Management Agreement and the Seventh
Mezzanine Cash Management Agreement; (iii) with respect to the Third
Mezzanine Loan, the Fourth Mezzanine Cash Management Agreement, the Fifth
Mezzanine Cash Management Agreement, the Sixth Mezzanine Cash Management
Agreement and the Seventh Mezzanine Cash Management Agreement; (iv) with
respect to the Fourth Mezzanine Loan, the Fifth Mezzanine Cash Management
Agreement, the Sixth Mezzanine Cash Management Agreement and the Seventh
Mezzanine Cash Management Agreement; (v) with respect to the Fifth
Mezzanine Loan, the Sixth Mezzanine Cash Management Agreement and the Seventh
Mezzanine Cash Management Agreement; (vi) with respect to the Sixth
Mezzanine Loan, the Seventh Mezzanine Cash Management Agreement and
(vii) with respect to the Seventh Mezzanine Loan, none of the other Junior
Loan Cash Management Agreements. As the context requires, the Subordinate
Junior Loan Cash Management Agreements shall have the following order of
priority: (i) first, the First Mezzanine Cash Management Agreement;
(ii) second, the Second Mezzanine Cash Management Agreement;
(iii) third, the Third Mezzanine Cash Management Agreement; (iv) fourth,
the Fourth Mezzanine Cash Management Agreement, (v) fifth, the Fifth
Mezzanine Cash Management Agreement; (vi) sixth, the Sixth Mezzanine Cash
Management Agreement and (vii) seventh, the Seventh Mezzanine Cash
Management Agreement.

 

“Subordinate Junior Loan Documents” means
(i) with respect to the First Mezzanine Loan, the Second Mezzanine Loan
Documents, the Third Mezzanine Loan Documents, the Fourth Mezzanine Loan
Documents, the Fifth Mezzanine Loan Documents, the Sixth Mezzanine Loan
Documents and the Seventh Mezzanine Loan Documents; (ii) with respect to
the Second Mezzanine Loan, the Third Mezzanine Loan Documents, the Fourth
Mezzanine Loan Documents, the Fifth Mezzanine Loan 

 

21

 

Documents, the Sixth Mezzanine Loan Documents
and the Seventh Mezzanine Loan Documents; (iii) with respect to the Third
Mezzanine Loan, the Fourth Mezzanine Loan Documents, the Fifth Mezzanine Loan
Documents, the Sixth Mezzanine Loan Documents and the Seventh Mezzanine Loan
Documents; (iv) with respect to the Fourth Mezzanine Loan, the Fifth
Mezzanine Loan Documents, the Sixth Mezzanine Loan Documents and the Seventh
Mezzanine Loan Documents; (v) with respect to the Fifth Mezzanine Loan,
the Sixth Mezzanine Loan Documents and the Seventh Mezzanine Loan Documents and
(vi) with respect to the Sixth Mezzanine Loan, the Seventh Mezzanine Loan
Documents; (vii) with respect to the Seventh Mezzanine Loan, none of the
other Junior Loan Documents. As the context requires, the Subordinate Junior Loan
Documents shall have the following order of priority: (i) first, the First
Mezzanine Loan Documents; (ii) second, the Second Mezzanine Loan
Documents; (iii) third, the Third Mezzanine Loan Documents;
(iv) fourth, the Fourth Mezzanine Loan Documents; (v) fifth, the
Fifth Mezzanine Loan Documents; (vi) sixth, the Sixth Mezzanine Loan
Documents and (vii) seventh, the Seventh Mezzanine Loan Documents.

 

“Subordinate Junior Loans” means
(i) with respect to the First Mezzanine Loan, the Second Mezzanine Loan,
the Third Mezzanine Loan, the Fourth Mezzanine Loan, the Fifth Mezzanine Loan,
the Sixth Mezzanine Loan and the Seventh Mezzanine Loan; (ii) with respect
to the Second Mezzanine Loan, the Third Mezzanine Loan, the Fourth Mezzanine
Loan, the Fifth Mezzanine Loan, the Sixth Mezzanine Loan and the Seventh
Mezzanine Loan; (iii) with respect to the Third Mezzanine Loan, the Fourth
Mezzanine Loan, the Fifth Mezzanine Loan, the Sixth Mezzanine Loan and the
Seventh Mezzanine Loan; (iv) with respect to the Fourth Mezzanine Loan,
the Fifth Mezzanine Loan, the Sixth Mezzanine Loan and the Seventh Mezzanine
Loan; (v) with respect to the Fifth Mezzanine Loan, the Sixth Mezzanine
Loan and the Seventh Mezzanine Loan; (vi) with respect to the Sixth
Mezzanine Loan, the Seventh Mezzanine Loan and (vii) with respect to the
Seventh Mezzanine Loan, none of the other Junior Loans. As the context
requires, the Subordinate Junior Loans shall have the following order of
priority: (i) first, the First Mezzanine Loan; (ii) second, the
Second Mezzanine Loan; (iii) third, the Third Mezzanine Loan;
(iv) fourth, the Fourth Mezzanine Loan; (v) fifth, the Fifth
Mezzanine Loan; (vi) sixth, the Sixth Mezzanine Loan and
(vii) seventh, the Seventh Mezzanine Loan.

 

“Third Party Agreement” has the meaning set
forth in Section 6(a) hereof.

 

“Third Mezzanine Borrower” has the meaning
set forth on Schedule 1
attached hereto.

 

“Third Mezzanine Cash Management Agreement”
means any cash management agreement executed in connection with, or the cash
management provisions of, the Third Mezzanine Loan Documents.

 

“Third Mezzanine Lender” has the meaning set
forth in the Recitals hereto.

 

“Third Mezzanine Loan” has the meaning set
forth in the Recitals hereto.

 

“Third Mezzanine Loan Agreement” has the
meaning set forth in the Recitals
hereto.

 

“Third Mezzanine Loan Documents” has the
meaning set forth in the Recitals
hereto.

 

“Third Mezzanine Loan Liabilities” means,
collectively, all of the indebtedness, liabilities and obligations of Fourth
Mezzanine Borrower under any Third Mezzanine Loan Document, including, without
limitation (i) the principal amount of, and accrued interest on
(including, without limitation, any interest which accrues after the
commencement of any case, proceeding or other action relating to the bankruptcy,
insolvency or reorganization of Third Mezzanine Borrower, whether or not such
interest would be allowed in such case, proceeding or action), the Third
Mezzanine Loan, (ii) all other indebtedness, obligations and liabilities
of Third Mezzanine Borrower to Third Mezzanine Lender now existing or hereafter
incurred or created under the Third Mezzanine Loan Documents, and
(iii) all other indebtedness, obligations and liabilities of Third
Mezzanine Borrower to Third Mezzanine Lender now existing or hereafter
incurred, created and arising from or relating to the Third Mezzanine Loan, 

 

22

 

including, without limitation, any late
charges, default interest, prepayment fees or premiums (including spread
maintenance and yield maintenance premiums), exit fees, advances and
post-petition interest.

 

“Third Mezzanine Note” has the meaning set
forth in the Recitals hereto.

 

“Third Mezzanine Noteholders” has the
meaning provided in the Recitals hereto.

 

“Third Mezzanine Pledge Agreement” has the
meaning set forth in the Recitals
hereto.

 

“Third Party Agreement” has the meaning set
forth in Section 6(a) hereof.

 

“Third Party Obligor” has the meaning set
forth in Section 6(a) hereof.

 

“Transfer” means any assignment, pledge,
conveyance, sale, transfer, mortgage, encumbrance, grant of a security
interest, issuance of a participation interest, or other disposition, either
directly or indirectly, by operation of law or otherwise.

 

(a) 
For all purposes of this Agreement, except as otherwise expressly provided or
unless the context otherwise requires:

 

(i)            all capitalized
terms defined in the recitals to this Agreement shall have the meanings
ascribed thereto whenever used in this Agreement and the terms defined in this
Agreement have the meanings assigned to them in this Agreement, and the use of
any gender herein shall be deemed to include the other genders;

 

(ii)           terms not otherwise
defined herein shall have the meaning assigned to them in the Senior Loan
Agreement;

 

(iii)          all references in
this Agreement to designated Sections, Subsections, Paragraphs, Articles,
Exhibits, Schedules and other subdivisions or addenda without reference to a
document are to the designated sections, subsections, paragraphs and articles
and all other subdivisions of and exhibits, schedules and all other addenda to
this Agreement, unless otherwise specified;

 

(iv)          a reference to a
Subsection without further reference to a Section is a reference to such
Subsection as contained in the same Section in which the reference
appears, and this rule shall apply to Paragraphs and other subdivisions;

 

(v)           the terms “includes”
or “including” shall mean without limitation by reason of enumeration;

 

(vi)          the words “herein”, “hereof”,
“hereunder” and other words of similar import refer to this Agreement as a
whole and not to any particular provision;

 

(vii)         the headings and
captions used in this Agreement are for convenience of reference only and do
not define, limit or describe the scope or intent of the provisions of this
Agreement;

 

(viii)        the words “to Junior
Lender’s knowledge” or “to the knowledge of Junior Lender” (or words of similar
meaning) shall mean to the actual knowledge of officers of the applicable
Junior Lender with direct oversight responsibility for its Junior Loan without
independent investigation or inquiry and without any imputation whatsoever; and

 

(ix)           the words “to
Senior Lender’s knowledge” or “to the knowledge of Senior Lender” (or words of
similar meaning) shall mean to the actual knowledge of officers of Senior
Lender with direct oversight responsibility for the Senior Loan without
independent investigation or inquiry and without any imputation whatsoever.

 

23

 

Section 2. 
Characterization of the Junior Loans.

 

(a)  Senior Loan.  Each Junior Lender, with respect only to its
Junior Loan, hereby acknowledges that (i) Senior Borrower will not ever
have any liability or obligation whatsoever with respect to the Junior Notes or
otherwise in connection with the payment of the Junior Loans, (ii) the
Junior Loans do not constitute or impose, and shall not be deemed or construed
as constituting or imposing now or hereafter, a lien or encumbrance upon, or
security interest in any portion of the Premises or any other collateral
securing the Senior Loan or otherwise grant to any Junior Lender the status as
a creditor of Senior Borrower, (iii) they shall not assert, claim or raise
as a defense, any such lien, encumbrance or security interest in the Premises
or any status as a creditor of Senior Borrower in any action or proceeding,
including any insolvency or bankruptcy proceeding commenced by or against
Senior Borrower and (iv) they shall not assert, pursue, confirm or
acquiesce in any way to any recharacterization of the Junior Loans as having
conferred upon any Junior Lender any lien or encumbrance upon, or security
interest in, the Premises or any portion thereof or as having conferred upon
Junior Lenders the status of a creditor of Senior Borrower.

 

(b)  First Mezzanine Loan.  First Mezzanine Lender hereby acknowledges
that (i) no Junior Borrower other than the First Mezzanine Borrower will
ever have any liability or obligation whatsoever with respect to the First
Mezzanine Note or otherwise in connection with the payment of the First
Mezzanine Loan; (ii) the First Mezzanine Loan does not constitute or
impose, and shall not be deemed or construed as constituting or imposing now or
hereafter, a lien or encumbrance upon, or security interest in any portion of
the Separate Collateral securing any Junior Loan other than the First Mezzanine
Loan; (iii) the First Mezzanine Loan does not grant to First Mezzanine
Lender the status as a creditor of any Junior Borrower other than First
Mezzanine Borrower; (iv) First Mezzanine Lender shall not assert, claim or
raise as a defense, any such lien, encumbrance or security interest in the
Separate Collateral securing any Junior Loan other than the First Mezzanine
Loan; (v) First Mezzanine Lender shall not assert, claim or raise as a
defense any status as a creditor of any Junior Borrower other than First
Mezzanine Borrower in any action or proceeding, including any insolvency or
bankruptcy proceeding commenced by or against First Mezzanine Borrower; and
(vi) First Mezzanine Lender shall not assert, pursue, confirm or acquiesce
in any way to any recharacterization of the First Mezzanine Loan as having
conferred upon First Mezzanine Lender any lien or encumbrance upon, or security
interest in, the Separate Collateral securing any Junior Loan other than the
First Mezzanine Loan or as having conferred upon First Mezzanine Lender the
status of a creditor of any Junior Borrower other than First Mezzanine
Borrower.

 

(c)  Second Mezzanine Loan.  Second Mezzanine Lender hereby acknowledges that
(i) no Junior Borrower other than the Second Mezzanine Borrower will ever
have any liability or obligation whatsoever with respect to the Second
Mezzanine Note or otherwise in connection with the payment of the Second
Mezzanine Loan; (ii) the Second Mezzanine Loan does not constitute or
impose, and shall not be deemed or construed as constituting or imposing now or
hereafter, a lien or encumbrance upon, or security interest in any portion of
the Separate Collateral securing any Junior Loan other than the Second
Mezzanine Loan; (iii) the Second Mezzanine Loan does not grant to Second
Mezzanine Lender the status as a creditor of any Junior Borrower other than
Second Mezzanine Borrower; (iv) Second Mezzanine Lender shall not assert,
claim or raise as a defense, any such lien, encumbrance or security interest in
the Separate Collateral securing any Junior Loan other than the Second
Mezzanine Loan; (v) Second Mezzanine Lender shall not assert, claim or
raise as a defense any status as a creditor of any Junior Borrower other than
Second Mezzanine Borrower in any action or proceeding, including any insolvency
or bankruptcy proceeding commenced by or against Second Mezzanine Borrower; and
(vi) Second Mezzanine Lender shall not assert, pursue, confirm or acquiesce
in any way to any recharacterization of the Second Mezzanine Loan as having
conferred upon Second Mezzanine Lender any lien or encumbrance upon, or
security interest in, the Separate Collateral securing any Junior Loan other
than the Second 

 

24

 

Mezzanine Loan or as having conferred upon
Second Mezzanine Lender the status of a creditor of any Junior Borrower other
than Second Mezzanine Borrower.

 

(d)  Third Mezzanine Loan.  Third Mezzanine Lender hereby acknowledges
that (i) no Junior Borrower other than the Third Mezzanine Borrower will
ever have any liability or obligation whatsoever with respect to the Third
Mezzanine Note or otherwise in connection with the payment of the Third
Mezzanine Loan; (ii) the Third Mezzanine Loan does not constitute or
impose, and shall not be deemed or construed as constituting or imposing now or
hereafter, a lien or encumbrance upon, or security interest in any portion of
the Separate Collateral securing any Junior Loan other than the Third Mezzanine
Loan; (iii) the Third Mezzanine Loan does not grant to Third Mezzanine
Lender the status as a creditor of any Junior Borrower other than Third
Mezzanine Borrower; (iv) Third Mezzanine Lender shall not assert, claim or
raise as a defense, any such lien, encumbrance or security interest in the
Separate Collateral securing any Junior Loan other than the Third Mezzanine
Loan; (v) Third Mezzanine Lender shall not assert, claim or raise as a
defense any status as a creditor of any Junior Borrower other than Third
Mezzanine Borrower in any action or proceeding, including any insolvency or
bankruptcy proceeding commenced by or against Third Mezzanine Borrower; and
(vi) Third Mezzanine Lender shall not assert, pursue, confirm or acquiesce
in any way to any recharacterization of the Third Mezzanine Loan as having
conferred upon Third Mezzanine Lender any lien or encumbrance upon, or security
interest in, the Separate Collateral securing any Junior Loan other than the
Third Mezzanine Loan or as having conferred upon Third Mezzanine Lender the
status of a creditor of any Junior Borrower other than Third Mezzanine
Borrower.

 

(e)  Fourth Mezzanine Loan.  Fourth Mezzanine Lender hereby acknowledges
that (i) no Junior Borrower other than the Fourth Mezzanine Borrower will
ever have any liability or obligation whatsoever with respect to the Fourth
Mezzanine Note or otherwise in connection with the payment of the Fourth
Mezzanine Loan; (ii) the Fourth Mezzanine Loan does not constitute or
impose, and shall not be deemed or construed as constituting or imposing now or
hereafter, a lien or encumbrance upon, or security interest in any portion of
the Separate Collateral securing any Junior Loan other than the Fourth
Mezzanine Loan; (iii) the Fourth Mezzanine Loan does not grant to Fourth
Mezzanine Lender the status as a creditor of any Junior Borrower other than
Fourth Mezzanine Borrower; (iv) Fourth Mezzanine Lender shall not assert,
claim or raise as a defense, any such lien, encumbrance or security interest in
the Separate Collateral securing any Junior Loan other than the Fourth
Mezzanine Loan; (v) Fourth Mezzanine Lender shall not assert, claim or
raise as a defense any status as a creditor of any Junior Borrower other than
Fourth Mezzanine Borrower in any action or proceeding, including any insolvency
or bankruptcy proceeding commenced by or against Fourth Mezzanine Borrower; and
(vi) Fourth Mezzanine Lender shall not assert, pursue, confirm or
acquiesce in any way to any recharacterization of the Fourth Mezzanine Loan as
having conferred upon Fourth Mezzanine Lender any lien or encumbrance upon, or
security interest in, the Separate Collateral securing any Junior Loan other
than the Fourth Mezzanine Loan or as having conferred upon Fourth Mezzanine
Lender the status of a creditor of any Junior Borrower other than Fourth
Mezzanine Borrower.

 

(f)  Fifth Mezzanine Loan.  Fifth Mezzanine Lender hereby acknowledges
that (i) no Junior Borrower other than the Fifth Mezzanine Borrower will
ever have any liability or obligation whatsoever with respect to the Fifth
Mezzanine Note or otherwise in connection with the payment of the Fifth
Mezzanine Loan; (ii) the Fifth Mezzanine Loan does not constitute or
impose, and shall not be deemed or construed as constituting or imposing now or
hereafter, a lien or encumbrance upon, or security interest in any portion of
the Separate Collateral securing any Junior Loan other than the Fifth Mezzanine
Loan; (iii) the Fifth Mezzanine Loan does not grant to Fifth Mezzanine
Lender the status as a creditor of any Junior Borrower other than Fifth
Mezzanine Borrower; (iv) Fifth Mezzanine Lender shall not assert, claim or
raise as a defense, any such lien, encumbrance or security interest in the
Separate Collateral securing any Junior Loan other than the Fifth Mezzanine
Loan; (v) Fifth Mezzanine Lender shall not assert, claim or raise as a
defense any status as a creditor of any Junior 

 

25

 

Borrower other than Fifth Mezzanine Borrower
in any action or proceeding, including any insolvency or bankruptcy proceeding
commenced by or against Fifth Mezzanine Borrower; and (vi) Fifth Mezzanine
Lender shall not assert, pursue, confirm or acquiesce in any way to any
recharacterization of the Fifth Mezzanine Loan as having conferred upon Fifth
Mezzanine Lender any lien or encumbrance upon, or security interest in, the
Separate Collateral securing any Junior Loan other than the Fifth Mezzanine
Loan or as having conferred upon Fifth Mezzanine Lender the status of a
creditor of any Junior Borrower other than Fifth Mezzanine Borrower.

 

(g)  Sixth Mezzanine Loan.  Sixth Mezzanine Lender hereby acknowledges
that (i) no Junior Borrower other than the Sixth Mezzanine Borrower will
ever have any liability or obligation whatsoever with respect to the Sixth
Mezzanine Note or otherwise in connection with the payment of the Sixth
Mezzanine Loan; (ii) the Sixth Mezzanine Loan does not constitute or
impose, and shall not be deemed or construed as constituting or imposing now or
hereafter, a lien or encumbrance upon, or security interest in any portion of
the Separate Collateral securing any Junior Loan other than the Sixth Mezzanine
Loan; (iii) the Sixth Mezzanine Loan does not grant to Sixth Mezzanine
Lender the status as a creditor of any Junior Borrower other than Sixth
Mezzanine Borrower; (iv) Sixth Mezzanine Lender shall not assert, claim or
raise as a defense, any such lien, encumbrance or security interest in the
Separate Collateral securing any Junior Loan other than the Sixth Mezzanine
Loan; (v) Sixth Mezzanine Lender shall not assert, claim or raise as a
defense any status as a creditor of any Junior Borrower other than Sixth
Mezzanine Borrower in any action or proceeding, including any insolvency or
bankruptcy proceeding commenced by or against Sixth Mezzanine Borrower; and
(vi) Sixth Mezzanine Lender shall not assert, pursue, confirm or acquiesce
in any way to any recharacterization of the Sixth Mezzanine Loan as having
conferred upon Sixth Mezzanine Lender any lien or encumbrance upon, or security
interest in, the Separate Collateral securing any Junior Loan other than the
Sixth Mezzanine Loan or as having conferred upon Sixth Mezzanine Lender the
status of a creditor of any Junior Borrower other than Sixth Mezzanine
Borrower.

 

(h)  Seventh Mezzanine Loan.  Seventh Mezzanine Lender hereby acknowledges
that (i) no Junior Borrower other than the Seventh Mezzanine Borrower will
ever have any liability or obligation whatsoever with respect to the Seventh
Mezzanine Note or otherwise in connection with the payment of the Seventh
Mezzanine Loan; (ii) the Seventh Mezzanine Loan does not constitute or
impose, and shall not be deemed or construed as constituting or imposing now or
hereafter, a lien or encumbrance upon, or security interest in any portion of
the Separate Collateral securing any Junior Loan other than the Seventh
Mezzanine Loan; (iii) the Seventh Mezzanine Loan does not grant to Seventh
Mezzanine Lender the status as a creditor of any Junior Borrower other than Seventh
Mezzanine Borrower; (iv) Seventh Mezzanine Lender shall not assert, claim
or raise as a defense, any such lien, encumbrance or security interest in the
Separate Collateral securing any Junior Loan other than the Seventh Mezzanine
Loan; (v) Seventh Mezzanine Lender shall not assert, claim or raise as a
defense any status as a creditor of any Junior Borrower other than Seventh
Mezzanine Borrower in any action or proceeding, including any insolvency or
bankruptcy proceeding commenced by or against Seventh Mezzanine Borrower; and
(vi) Seventh Mezzanine Lender shall not assert, pursue, confirm or
acquiesce in any way to any recharacterization of the Seventh Mezzanine Loan as
having conferred upon Seventh Mezzanine Lender any lien or encumbrance upon, or
security interest in, the Separate Collateral securing any Junior Loan other
than the Seventh Mezzanine Loan or as having conferred upon Seventh Mezzanine
Lender the status of a creditor of any Junior Borrower other than Seventh
Mezzanine Borrower.

 

(i)  Junior Loans.  Senior Lender hereby acknowledges that
(i) no Junior Borrower will ever have any liability or obligation
whatsoever with respect to the Senior Note or otherwise in connection with the
payment of the Senior Loan; (ii) the Senior Loan does not constitute or
impose, and shall not be deemed or construed as constituting or imposing now or
hereafter, a lien or encumbrance upon, or security interest in any portion of
the Separate Collateral securing any Junior Loan; (iii) the Senior 

 

26

 

Loan does not grant to Senior Lender the
status as a creditor of any Junior Borrower; (iv) Senior Lender shall not
assert, claim or raise as a defense, any such lien, encumbrance or security
interest in the Separate Collateral securing any Junior Loan; (v) Senior
Lender shall not assert, claim or raise as a defense any status as a creditor
of any Junior Borrower in any action or proceeding, including any insolvency or
bankruptcy proceeding commenced by or against any Junior Borrower; and
(vi) Senior Lender shall not assert, pursue, confirm or acquiesce in any
way to any recharacterization of the Senior Loan as having conferred upon
Senior Lender any lien or encumbrance upon, or security interest in, the
Separate Collateral securing any Junior Loan or as having conferred upon Senior
Lender the status of a creditor of any Junior Borrower.

 

Section 3.  Approval of
Loans and Loan Documents.

 

(a)  Junior Lenders.  Each Junior Lender hereby acknowledges that
(i) it has received and reviewed and, subject to the terms and conditions
of this Agreement, hereby consents to and approves of the making of the Senior
Loan and each of the Junior Loans and, subject to the terms and provisions of
this Agreement, all of the terms and provisions of the Senior Loan Documents
and each of the Junior Loan Documents; (ii) the execution, delivery and
performance of the Senior Loan Documents and each of the Junior Loan Documents
will not constitute a default or an event which, with the giving of notice or
the lapse of time, or both, would constitute a default under the Junior Loan
Documents relating to the Junior Loan held by such Junior Lender;
(iii) none of Senior Lender or any of the other Junior Lenders are under
any obligation or duty to, nor has Senior Lender or any of the other Junior
Lenders represented that either will, see to (A) the application of the
proceeds of the Senior Loan by Borrower or any other Person to whom Senior
Lender disburses such proceeds and (B) the application of the proceeds of
any Junior Loan other than the Junior Loan held by such Junior Lender;
(iv) (A) any application or use of the proceeds of the Senior Loan
for purposes other than those provided in the Senior Loan Documents shall not
affect, impair or defeat the terms and provisions of this Agreement or the
Senior Loan Documents and (B) any application or use of the proceeds of
any Junior Loan other than the Junior Loan held by such Junior Lender for
purposes other than those provided in the related Junior Loan Documents shall
not affect, impair or defeat the terms and provisions of this Agreement or the
related Junior Loan Documents; and (v) any conditions precedent to such
Junior Lender’s consent to mezzanine or partner financing as set forth in the
Junior Loan Documents or any other agreements with Junior Borrowers, as they
apply to the Junior Loan Documents or the making of the Junior Loans, have been
either satisfied or waived.

 

(b)  Senior Lender.  Senior Lender hereby acknowledges that
(i) it has received and reviewed, and, subject to the terms and conditions
of this Agreement, hereby consents to and approves of the making of the Junior
Loans and, subject to the terms and provisions of this Agreement, all of the
terms and provisions of the Junior Loan Documents; (ii) subject to the
terms and provisions of this Agreement, the execution, delivery and performance
of the Junior Loan Documents will not constitute a default or an event which,
with the giving of notice or the lapse of time, or both, would constitute a
default under the Senior Loan Documents; (iii) none of the Junior Lenders
are under any obligation or duty to, nor has any Junior Lender represented that
it will, see to the application of the proceeds of the Junior Loans;
(iv) any application or use of the proceeds of the Junior Loans for
purposes other than those provided in the Junior Loan Documents shall not
affect, impair or defeat the terms and provisions of this Agreement or the
Junior Loan Documents; and (v) any conditions precedent to Senior Lender’s
consent to mezzanine or partner financing as set forth in the Senior Loan
Documents or any other agreements with the Senior Borrower, as they apply to
the Junior Loan Documents or the making of the Junior Loans, have been either
satisfied or waived. Notwithstanding any provisions herein to the contrary,
Senior Lender agrees that no default or Event of Default under any of the
Junior Loan Documents shall, in and of itself, constitute or give rise to a
default or Event of Default under the Senior Loan Documents, entitle Senior
Lender to accelerate payments under the Senior Loan Documents or entitle Senior
Lender to modify any provisions of the Senior Loan Documents; 

 

27

 

provided, however, the circumstances giving rise to
a default or Event of Default under the Junior Loan Documents may independently
give rise to a default or Event of Default under the Senior Loan Documents as
provided for therein.

 

Section 4. 
Representations and Warranties.

 

(a)  Senior Lender.  Senior Lender hereby represents and warrants
to each of the Junior Lenders as follows:

 

(i)            Exhibit A
attached hereto and made a part hereof is a true and correct listing of the
material Senior Loan Documents (including all amendments, modifications,
replacements, restatements and supplements thereof) as of the date hereof. To
Senior Lender’s knowledge, there currently exists no default or event which,
with the giving of notice or the lapse of time, or both, would constitute a
default under any of the Senior Loan Documents.

 

(ii)           Senior Lender and the other Senior
Noteholders (as defined in the Senior Loan Agreement) are the legal and
beneficial owners of the Senior Loan free and clear of any lien, security
interest, option or other charge or encumbrance.

 

(iii)          There are no conditions precedent to
the effectiveness of this Agreement with respect to Senior Lender that have not
been satisfied or waived.

 

(iv)          Senior Lender has, independently and
without reliance upon Junior Lenders and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to make the Senior Loan and to enter into this Agreement.

 

(v)           Senior Lender is duly organized and
is validly existing under the laws of the jurisdiction under which it was
organized with full power to execute, deliver, and perform this Agreement and
consummate the transactions contemplated hereby.

 

(vi)          All actions necessary to authorize the
execution, delivery, and performance of this Agreement on behalf of Senior
Lender have been duly taken, and all such actions continue in full force and
effect as of the date hereof.

 

(vii)         Senior Lender has duly executed and
delivered this Agreement and this Agreement constitutes the legal, valid, and
binding agreement of Senior Lender enforceable against Senior Lender in
accordance with its terms subject to (y) applicable bankruptcy,
reorganization, insolvency and moratorium laws and (z) general principles
of equity which may apply regardless of whether a proceeding is brought in law
or in equity.

 

(viii)        To Senior Lender’s knowledge, no consent
of any other Person and no consent, license, approval, or authorization of, or
exemption by, or registration or declaration or filing with, any governmental
authority, bureau or agency is required in connection with the execution,
delivery or performance by Senior Lender of this Agreement or consummation by
Senior Lender of the transactions contemplated by this Agreement.

 

(ix)           None of the execution, delivery and
performance of this Agreement nor the consummation of the transactions
contemplated by this Agreement will (v) violate or conflict with any
provision of the organizational or governing documents, if any, of Senior
Lender, (w) to Senior Lender’s knowledge, violate, conflict with, or
result in the breach or termination of, or otherwise give any other Person the
right to terminate, or constitute (or with the giving of notice or lapse of
time, or both, would constitute) a default under the terms of any material
contract, mortgage, lease, bond, indenture, agreement, or other instrument to
which Senior Lender is a party or to which any of its properties are subject,
(x) to Senior Lender’s knowledge, result in the creation of any lien,
charge, encumbrance, mortgage, lease, claim, security interest, or other right
or interest upon the properties or assets of Senior Lender pursuant to the
terms of any such material 

 

28

 

contract,
mortgage, lease, bond, indenture, agreement, franchise or other instrument,
(y) violate any judgment, order, injunction, decree or award of any court,
arbitrator, administrative agency or governmental or regulatory body of which
Senior Lender has knowledge against, or binding upon, Senior Lender or upon any
of the securities, properties, assets, or business of Senior Lender or
(z) to Senior Lender’s knowledge, constitute a violation by Senior Lender
of any statute, law or regulation that is applicable to Senior Lender.

 

(x)            The Senior Loan is not
cross-defaulted with any other loan. The Premises do not secure any other loan
from Senior Lender to Senior Borrower, Junior Borrowers or any other Affiliate
of Senior Borrower.

 

(b)  Junior Lenders.  Each Junior Lender hereby represents and
warrants, for itself only, to Senior Lender and the other Junior Lenders as
follows:

 

(i)            There are no conditions precedent to
the effectiveness of this Agreement that with respect to such Junior Lender
have not been satisfied or waived.

 

(ii)           Such Junior Lender has, independently
and without reliance upon Senior Lender or any other Junior Lender and based on
such documents and information as it has deemed appropriate, made its own
credit analysis and decision to make its respective Junior Loan and to enter
into this Agreement.

 

(iii)          Such Junior Lender is duly organized
and is validly existing under the laws of the jurisdiction under which it was
organized with full power to execute, deliver, and perform this Agreement and
consummate the transactions contemplated hereby.

 

(iv)          All actions necessary to authorize the
execution, delivery, and performance of this Agreement on behalf of such Junior
Lender have been duly taken, and all such actions continue in full force and
effect as of the date hereof.

 

(v)           Such Junior Lender has duly executed
and delivered this Agreement and this Agreement constitutes the legal, valid,
and binding agreement of such Junior Lender enforceable against such Junior
Lender in accordance with its terms subject to (x) applicable bankruptcy,
reorganization, insolvency and moratorium laws and (y) general principles
of equity which may apply regardless of whether a proceeding is brought in law
or in equity.

 

(vi)          To the knowledge of such Junior
Lender, no consent of any other Person and no consent, license, approval, or
authorization of, or exemption by, or registration or declaration or filing
with, any governmental authority, bureau or agency is required in connection
with the execution, delivery or performance by such Junior Lender of this
Agreement or consummation by such Junior Lender of the transactions
contemplated by this Agreement.

 

29

 

(vii)         None of the execution, delivery and
performance of this Agreement nor the consummation of the transactions
contemplated by this Agreement will (v) violate or conflict with any
provision of the organizational or governing documents of such Junior Lender,
(w) to such Junior Lender’s knowledge, violate, conflict with, or result
in the breach or termination of, or otherwise give any other Person the right
to terminate, or constitute (or with the giving of notice or lapse of time, or
both, would constitute) a default under the terms of any material contract,
mortgage, lease, bond, indenture, agreement, or other instrument to which such
Junior Lender is a party or to which any of its properties are subject,
(x) to such Junior Lender’s knowledge, result in the creation of any lien,
charge, encumbrance, mortgage, lease, claim, security interest, or other right
or interest upon the properties or assets of such Junior Lender pursuant to the
terms of any such material contract, mortgage, lease, bond, indenture, agreement,
franchise, or other instrument (provided,
however, that such Junior Lender
shall have the right to grant a lien, charge, encumbrance, claim or security
interest in the Junior Loan held by such Junior Lender or any portion thereof
to a Loan Pledgee as contemplated by the provisions of Section 16), (y) violate any
judgment, order, injunction, decree, or award of any court, arbitrator,
administrative agency or governmental or regulatory body of which such Junior
Lender has knowledge against, or binding upon, such Junior Lender or upon any
of the securities, properties, assets, or business of such Junior Lender or
(z) to such Junior Lender’s knowledge, constitute a violation by such
Junior Lender of any statute, law or regulation that is applicable to such
Junior Lender.

 

(viii)        Such Junior Lender is a “Qualified
Transferee” pursuant to clause (v) of the definition thereof.

 

(c)  First
Mezzanine Lender.  First
Mezzanine Lender (but not any transferee, successor or assign of First
Mezzanine Lender) hereby represents and warrants as follows:

 

(i)            Exhibit B
attached hereto and made a part hereof is a true and correct listing of all
material First Mezzanine Loan Documents (including all amendments,
modifications, replacements, restatements and supplements thereof) as of the
date hereof. To First Mezzanine Lender’s knowledge, there currently exists no
default or event which, with the giving of notice or the lapse of time, or
both, would constitute a default under the First Mezzanine Loan Documents.

 

(ii)           First Mezzanine Lender and the other
First Mezzanine Noteholders are the legal and beneficial owners of the entire
First Mezzanine Loan free and clear of any lien, security interest, option or
other charge or encumbrance, other than any lien or security interest granted
to any Loan Pledgee (as hereinafter defined) as contemplated by the provisions
of Section 16.

 

(iii)          The First Mezzanine Loan is not
cross-defaulted with any loan other than the Senior Loan. The Premises do not
secure any loan from First Mezzanine Lender to First Mezzanine Borrower or any
other Affiliate of Senior Borrower.

 

(d)  Second
Mezzanine Lender.  Second
Mezzanine Lender (but not any transferee, successor or assign of Second
Mezzanine Lender) hereby represents and warrants as follows:

 

(i)            Exhibit C
attached hereto and made a part hereof is a true and correct listing of all
material Second Mezzanine Loan Documents (including all amendments,
modifications, replacements, restatements and supplements thereof) as of the
date hereof. To Second Mezzanine Lender’s knowledge, there currently exists no
default or event which, with the giving of notice or the lapse of time, or
both, would constitute a default under the Second Mezzanine Loan Documents.

 

(ii)           Second Mezzanine Lender and the other
Second Mezzanine Noteholders are the legal and beneficial owners of the entire
Second Mezzanine Loan free and clear of any lien, security interest, option or
other charge or encumbrance, other than any lien or security interest granted
to any Loan Pledgee (as hereinafter defined) as contemplated by the provisions
of Section 16.

 

30

 

(iii)          The Second Mezzanine Loan is not
cross-defaulted with any loan other than the Senior Loan and the First
Mezzanine Loan. The Premises do not secure any loan from Second Mezzanine
Lender to Second Mezzanine Borrower or any other Affiliate of Borrower.

 

(e)  Third
Mezzanine Lender.  Third
Mezzanine Lender (but not any transferee, successor or assign of Third
Mezzanine Lender) hereby represents and warrants as follows:

 

(i)            Exhibit D
attached hereto and made a part hereof is a true and correct listing of all
material Third Mezzanine Loan Documents (including all amendments,
modifications, replacements, restatements and supplements thereof) as of the
date hereof. To Third Mezzanine Lender’s knowledge, there currently exists no
default or event which, with the giving of notice or the lapse of time, or
both, would constitute a default under the Third Mezzanine Loan Documents.

 

(ii)           Third Mezzanine Lender and the other
Third Mezzanine Noteholders are the legal and beneficial owners of the entire
Third Mezzanine Loan free and clear of any lien, security interest, option or
other charge or encumbrance, other than any lien or security interest granted
to any Loan Pledgee (as hereinafter defined) as contemplated by the provisions
of Section 16.

 

(iii)          The Third Mezzanine Loan is not
cross-defaulted with any loan other than the Senior Loan, the First Mezzanine
Loan and the Second Mezzanine Loan. The Premises do not secure any loan from
Third Mezzanine Lender to Third Mezzanine Borrower or any other Affiliate of
Senior Borrower.

 

(f)  Fourth
Mezzanine Lender.  Fourth
Mezzanine Lender (but not any transferee, successor or assign of Fourth
Mezzanine Lender) hereby represents and warrants as follows:

 

(i)            Exhibit E
attached hereto and made a part hereof is a true and correct listing of all
material Fourth Mezzanine Loan Documents (including all amendments,
modifications, replacements, restatements and supplements thereof) as of the
date hereof. To Fourth Mezzanine Lender’s knowledge, there currently exists no
default or event which, with the giving of notice or the lapse of time, or
both, would constitute a default under the Fourth Mezzanine Loan Documents.

 

(ii)           Fourth Mezzanine Lender and the other
Fourth Mezzanine Noteholders are the legal and beneficial owners of the entire
Fourth Mezzanine Loan free and clear of any lien, security interest, option or
other charge or encumbrance, other than any lien or security interest granted
to any Loan Pledgee (as hereinafter defined) as contemplated by the provisions
of Section 16.

 

(iii)          The Fourth Mezzanine Loan is not
cross-defaulted with any loan other than the Senior Loan, the First Mezzanine
Loan, the Second Mezzanine Loan and the Third Mezzanine Loan. The Premises do
not secure any loan from Fourth Mezzanine Lender to Fourth Mezzanine Borrower
or any other Affiliate of Borrower.

 

(g)  Fifth
Mezzanine Lender.  Fifth
Mezzanine Lender (but not any transferee, successor or assign of Fifth
Mezzanine Lender) hereby represents and warrants as follows:

 

(i)            Exhibit F
attached hereto and made a part hereof is a true and correct listing of all
material Fifth Mezzanine Loan Documents (including all amendments, modifications,
replacements, restatements and supplements thereof) as of the date hereof. To
Fifth Mezzanine Lender’s knowledge, there currently exists no default or event
which, with the giving of notice or the lapse of time, or both, would
constitute a default under the Fifth Mezzanine Loan Documents.

 

(ii)           Fifth Mezzanine Lender and the other
Fifth Mezzanine Noteholders are the legal and beneficial owners of the entire
Fifth Mezzanine Loan free and clear of any lien, security interest, 

 

31

 

option
or other charge or encumbrance, other than any lien or security interest
granted to any Loan Pledgee (as hereinafter defined) as contemplated by the
provisions of Section 16.

 

(iii)          The Fifth Mezzanine Loan is not cross-defaulted
with any loan other than the Senior Loan, the First Mezzanine Loan, the Second
Mezzanine Loan, the Third Mezzanine Loan and the Fourth Mezzanine Loan. The
Premises do not secure any loan from Fifth Mezzanine Lender to Fifth Mezzanine
Borrower or any other Affiliate of Borrower.

 

(h)  Sixth
Mezzanine Lender.  Sixth
Mezzanine Lender (but not any transferee, successor or assign of Sixth
Mezzanine Lender) hereby represents and warrants as follows:

 

(i)            Exhibit G
attached hereto and made a part hereof is a true and correct listing of all
material Sixth Mezzanine Loan Documents (including all amendments,
modifications, replacements, restatements and supplements thereof) as of the
date hereof. To Sixth Mezzanine Lender’s knowledge, there currently exists no
default or event which, with the giving of notice or the lapse of time, or
both, would constitute a default under the Sixth Mezzanine Loan Documents.

 

(ii)           Sixth Mezzanine Lender and the other
Sixth Mezzanine Noteholders are the legal and beneficial owners of the entire
Sixth Mezzanine Loan free and clear of any lien, security interest, option or
other charge or encumbrance, other than any lien or security interest granted
to any Loan Pledgee (as hereinafter defined) as contemplated by the provisions
of Section 16.

 

(iii)          The Sixth Mezzanine Loan is not
cross-defaulted with any loan other than the Senior Loan, the First Mezzanine
Loan, the Second Mezzanine Loan, the Third Mezzanine Loan, the Fourth Mezzanine
Loan and the Fifth Mezzanine Loan. The Premises do not secure any loan from
Sixth Mezzanine Lender to Sixth Mezzanine Borrower or any other Affiliate of
Borrower.

 

(i)  Seventh
Mezzanine Lender.  Seventh
Mezzanine Lender (but not any transferee, successor or assign of Seventh
Mezzanine Lender) hereby represents and warrants as follows:

 

(i)            Exhibit H
attached hereto and made a part hereof is a true and correct listing of all
material Seventh Mezzanine Loan Documents (including all amendments,
modifications, replacements, restatements and supplements thereof) as of the
date hereof. To Seventh Mezzanine Lender’s knowledge, there currently exists no
default or event which, with the giving of notice or the lapse of time, or
both, would constitute a default under the Seventh Mezzanine Loan Documents.

 

(ii)           Seventh Mezzanine Lender and the
other Seventh Mezzanine Noteholders are the legal and beneficial owners of the
entire Seventh Mezzanine Loan free and clear of any lien, security interest,
option or other charge or encumbrance, other than any lien or security interest
granted to any Loan Pledgee (as hereinafter defined) as contemplated by the
provisions of Section 16.

 

(iii)          The Seventh Mezzanine Loan is not
cross-defaulted with any loan other than the Senior Loan, the First Mezzanine
Loan, the Second Mezzanine Loan, the Third Mezzanine Loan, the Fourth Mezzanine
Loan, the Fifth Mezzanine Loan and the Sixth Mezzanine Loan. The Premises do
not secure any loan from Seventh Mezzanine Lender to Seventh Mezzanine Borrower
or any other Affiliate of Senior Borrower.

 

Section 5.  Transfer of
Junior Loan or Senior Loan.

 

(a)  Junior
Lender.  Notwithstanding the
provisions of Section 9 or
any other provisions hereof (including the provisions of Section 12(a)(iii) hereof), no Junior
Lender or any Loan Pledgee with respect to a Junior Loan shall Transfer in the
aggregate, taking into account all prior Transfers, more than forty nine
percent (49%) of its respective beneficial interest in its respective Junior
Loan to any Person that is not a Qualified Transferee or a Loan Pledgee,
without receiving a Rating Agency Confirmation (in which case the related
transferee shall thereafter be deemed to be a “Qualified 

 

32

 

Transferee” for all
purposes of this Agreement), and in connection with any Transfer to a Qualified
Transferee, any such Junior Lender shall, if requested by the Rating Agencies,
provide to Senior Lender, the other Junior Lenders and the Rating Agencies
within five (5) Business Days of such Transfer a certification that such
Transfer has been made to a Qualified Transferee or a Loan Pledgee. Any such
transferee (other than a Loan Pledgee or a participant in connection with a
participation of a portion of the applicable Junior Loan), must assume in
writing the obligations of such Junior Lender hereunder arising from and after
the date of such Transfer (and such Junior Lender shall remain liable for its
obligations hereunder arising prior to the date of such Transfer) and agree to
be bound by the terms and provisions hereof. Such proposed transferee (other
than a Loan Pledgee (prior to its realization on the Pledged Junior Loan) or a
participant in connection with a participation of a portion of the applicable
Junior Loan) shall also remake each of the representations and warranties
contained herein which are applicable to the Junior Loan being acquired for the
benefit of the Senior Lender and the Junior Lenders.

 

(b)  Senior Junior
Lender.  Each Senior Junior
Lender may, from time to time, in its sole discretion Transfer all or any part
of the applicable Senior Junior Loan or any interest therein as permitted
herein without the consent of any applicable Subordinate Junior Lender but
subject to the other provisions of this Section 5,
and, notwithstanding any such Transfer or subsequent Transfer by a transferee
of such Senior Junior Lender, such Senior Junior Loan and such Senior Junior
Loan Documents shall be and remain a senior obligation with respect to the
applicable Subordinate Junior Loans in the respects set forth in this Agreement
and in accordance with the terms and provisions of this Agreement; provided, however,
in no event shall any such Transfer be to Senior Borrower or to any Affiliate
of Senior Borrower (including, without limitation, any Junior Borrower that is
an Affiliate of Senior Borrower), provided,
however, that the aforesaid
prohibition shall not apply to any Junior Lender or an Affiliate thereof that
has acquired title to Equity Collateral.

 

(c)  Directing
Senior Lender.  If more than
one Person shall hold a direct interest in the Senior Loan, the holder(s) of
more than fifty percent (50%) of the principal amount of the Senior Loan
(unless the applicable participation agreement or co-lender agreement among the
holders of the Senior Loan provides a different designation mechanism, which
different mechanism shall be specified in such notice and upon which each
Junior Lender shall be entitled to rely) shall designate by written notice to
the Junior Lenders either (i) one of such Persons or (ii) a servicer
on behalf of such Persons (the “Directing
Senior Lender”) to act on behalf of all such Persons holding an
interest in the Senior Loan. Except as otherwise agreed in writing by the
Senior Lender and Junior Lenders, the Directing Senior Lender shall have the
sole right to receive any notices which are required to be given or which may
be given to the Senior Lender and to exercise the rights and power given to the
Senior Lender, including any approval rights of the Senior Lender; provided, that until a Directing Senior
Lender has been so designated, the last Person known to the Junior Lenders to
be the Directing Senior Lender or to hold more than a fifty percent (50%)
direct interest in the Senior Loan shall be deemed to be the Directing Senior
Lender. Once a Directing Senior Lender has been designated hereunder, each
Junior Lender shall be entitled to rely on such designation until it has
received written notice from the Directing Senior Lender or the holder(s) of
more than fifty percent (50%) of the principal amount of the Senior Loan of the
designation of a different Person to act as the Directing Senior Lender (unless
the applicable participation agreement or co-lender agreement among the holders
of the Senior Loan provides a different designation mechanism, which different
mechanism shall be specified in such notice and upon which each Junior Lender
shall be entitled to rely). Notwithstanding any provision of this Section 5(c) to the contrary, each
Person holding an interest in the Senior Loan shall be deemed to be a Senior
Lender for purposes of the rights and restrictions contained in Sections 5(a), (b) and (c),
and shall be subject to the rights and restrictions thereof with respect to
such Person’s interest in the Senior Loan.

 

33

 

(d)  Directing
Junior Lender.  If more than
one Person shall hold a direct interest in a Junior Loan, the holder(s) of more
than fifty percent (50%) of the principal amount of such Junior Loan (unless
the applicable participation agreement or co-lender agreement among the holders
of such Junior Loan provides a different designation mechanism, which different
mechanism shall be specified in such notice and upon which Senior Lender and
each Junior Lender shall be entitled to rely) shall designate by written notice
to Senior Lender and the other Junior Lenders one of such Persons (a “Directing Junior Lender”) to act on behalf
of all such Persons holding an interest in such Junior Loan. Except as
otherwise agreed in writing by the Senior Lender and Junior Lenders, the
Directing Junior Lender shall have the sole right to receive any notices which
are required to be given or which may be given to the Junior Lender holding the
applicable Junior Loan pursuant to this Agreement and to exercise the rights
and power given to the Junior Lender holding the applicable Junior Loan
hereunder, including any approval rights of the Junior Lender holding the
applicable Junior Loan; provided,
that until a Directing Junior Lender has been so designated, the last Person
known to the Senior Lender and the other Junior Lenders to hold more than a
fifty percent (50%) direct interest in the applicable Junior Loan shall be
deemed to be the Directing Junior Lender for such Junior Loan. Once a Directing
Junior Lender has been designated hereunder with respect to a Junior Loan,
Senior Lender and each other Junior Lender shall be entitled to rely on such
designation until it has received written notice from the holder(s) of more
than fifty percent (50%) of the principal amount of the applicable Junior Loan
of the designation of a different Person to act as the Directing Junior Lender
for such Junior Loan (unless the applicable participation agreement or
co-lender agreement among the holders of such Junior Loan provides a different
designation mechanism, which different mechanism shall be specified in such
notice and upon which Senior Lender and each Junior Lender shall be entitled to
rely). Notwithstanding any provision of this Section 5(d)
to the contrary, each Person holding an interest in a Junior Loan shall be
deemed to be a Junior Lender with respect to the applicable Junior Loan for
purposes of the rights and restrictions contained in Section 5(a), (b)
and (d), and shall be subject to
the rights and restrictions thereof with respect to such Person’s interest in
the applicable Junior Loan.

 

(e)  Senior
Lender.  Senior Lender may,
from time to time, in its sole discretion, Transfer all or any of the Senior
Loan or any interest therein in accordance with the terms of this Agreement,
provided that any such transferee (other than in connection with a
Securitization, provided the Transfer is made subject to this Agreement)
assumes in writing the obligations of Senior Lender hereunder accruing from and
after such Transfer and (except in connection with a Securitization) agrees to
be bound by the terms and provisions hereof, and notwithstanding any such
Transfer or subsequent Transfer, the Senior Loan and the Senior Loan Documents
shall be and remain a senior obligation in the respects set forth in this
Agreement to the Junior Loan and the Junior Loan Documents in accordance with
the terms and provisions of this Agreement. Senior Lender agrees that, Senior
Lender will not Transfer the Senior Loan to Borrower or any Affiliate of Borrower
without the consent of all of the Junior Lenders, which may be withheld in the
Junior Lenders’ sole discretion.

 

Section 6.  Foreclosure
of Separate Collateral. 
(a) Notwithstanding the provisions of Section 8 or any other provisions hereof (including the
provisions of Section 12(a)(iii)
hereof), no Junior Lender nor any Loan Pledgee with respect to a Junior Loan
shall complete a foreclosure or otherwise realize upon any of its Equity
Collateral (or accept title to such Equity Collateral in lieu of foreclosure,
including, without limitation, sell or otherwise transfer the Equity
Collateral) unless (i) the transferee of the title to such Equity
Collateral is a Qualified Transferee, (ii) each of the Individual
Properties will be managed and operated by a Qualified Operator within thirty
(30) days after the transfer of title, (iii) if a non-consolidation
opinion was delivered in connection with the origination of the Senior Loan,
there is delivered at the transfer of title a non-consolidation opinion which has
been reviewed and approved by counsel to such Junior Lender as being in a form
which would be in such counsel’s view acceptable to the Rating Agencies, and
within ten (10) Business Days after the transfer, a non-consolidation
opinion acceptable to the Rating Agencies and the applicable Senior Junior
Lenders, (iv) the existing 

 

34

 

cash management system is maintained, to the
extent required under the Senior Loan Documents and the applicable Senior
Junior Loan Documents, (v) immediately following such foreclosure reserves
for taxes, debt service, capital repair and improvement expenses, tenant
improvement expenses, leasing commissions and operating expenses, insurance and
ground rents, if any, are, to the extent required under the Senior Loan
Documents and the applicable Senior Junior Loan Documents, maintained,
(vi) after giving effect to such Transfer, on and after the date of such
Transfer, Senior Borrower and the applicable Junior Borrower (to the extent required
by the Senior Loan Documents and the applicable Senior Junior Loan Documents)
are Special Purpose Entities, and (vii) notice of the Transfer and an
officer’s certificate from an officer of the applicable Junior Lender
certifying that all conditions set forth in clauses (i) through
(vi) above have been satisfied must be provided to Senior Lender, the
applicable Senior Junior Lenders and the Rating Agencies upon the satisfaction
of the requirements set forth above (which shall be within thirty (30) days
subsequent to the Transfer). In the event that such Transfer results in the
explicit release from future liability of any guarantor, indemnitor, pledgor,
or other obligor (each, a “Third Party
Obligor”), under the Senior Loan and/or any Senior Junior Loan, or
any other guaranty, pledge or indemnity which may constitute a Senior Loan
Document and/or a Senior Junior Loan Document (each, a “Third Party Agreement”), such transferee or
an Affiliate thereof reasonably satisfactory to Senior Lender and the applicable
Senior Junior Lender shall: (A) execute and deliver to each of Senior
Lender and/or the applicable Senior Junior Lender a substitute Third Party
Agreement from a substitute Third Party Obligor reasonably acceptable to Senior
Lender and each applicable Senior Junior Lender, in each case in a form
substantially similar to the original Third Party Agreement that it is
replacing or otherwise in form reasonably acceptable to Senior Lender and each
applicable Senior Junior Lender, pursuant to which the substitute Third Party
Obligor shall undertake the obligations set forth therein from and after the
date of such Transfer (and only to the extent arising from and after the date
of such Transfer), and (B) if there are Certificates then outstanding, deliver
(or cause to be delivered) to Senior Lender and each Rating Agency, an opinion
of counsel that the substitution of the original Third Party Obligor and the
original Third Party Agreement with a substitute Third Party Obligor and a
substitute Third Party Agreement, would not cause a “significant modification”
of the Senior Loan, as such term is defined in Treasury Regulations
Section 1.860G 2(b); provided,
however, that any substitute
Third Party Obligor which is a Qualified Transferee pursuant to
clause (iv) of the definition of “Qualified Transferee” shall be deemed
satisfactory to Senior Lender and the applicable Senior Junior Lenders.

 

(b)           Nothing contained herein shall limit
or restrict the right of any Junior Lender to exercise its rights and remedies,
in law or in equity, or otherwise, in order to realize on any of its Separate
Collateral that is not Equity Collateral and to apply the proceeds therefrom as
it deems appropriate in its discretion (i.e.,
without payment subordination) (including exercising any remedy against any
guarantor (a “Guarantor”) pursuant
to any guaranty granted to any Junior Lender as additional collateral to secure
the obligations under the applicable Junior Loan Documents) (a “Guaranty Claim”); provided, however,
each Junior Lender agrees that it shall not pursue the enforcement of any
judgments against Guarantor (but shall not be precluded from obtaining a
judgment) pursuant to this clause (b)
if (i) Junior Lender has received notice that Senior Lender is
simultaneously exercising any rights and remedies that it may have against such
Guarantor under any guaranty granted to Senior Lender as additional collateral
to secure the obligations under the Senior Loan Documents or (ii) Junior
Lender has received notice that a Senior Junior Lender is simultaneously
exercising any rights and remedies that it may have against such Guarantor
under any guaranty granted to such Senior Junior Lender as additional
collateral to secure the obligations under the Senior Junior Loan Documents and
any right of payment of any Junior Lender under a Guaranty Claim shall be
subject and subordinate in all respects to the rights and claims of Senior
Lender and any applicable Senior Junior Lenders against such Guarantor.

 

(c)           In the event a Junior Lender that is a
Qualified Transferee or any Qualified Transferee purchaser at a UCC sale
obtains title to the Equity Collateral, each of Senior Lender and any Senior 

 

35

 

Junior Lender acknowledges and agrees that
any transfer or assumption fee in the Senior Loan Agreement or any Senior
Junior Loan Agreement shall be waived as a condition to such Transfer however,
all reasonable expenses incurred by Senior Lender and by any Senior Junior
Lender in connection with any such Transfer shall be paid by such Junior Lender
and any such Transfer shall not constitute a breach or default under the Senior
Loan Documents or any Senior Junior Loan Documents, provided that such action
is enforced in accordance with the terms and conditions of this Agreement,
including Section 6(a).
Senior Lender and any applicable Senior Junior Lender shall not impose any
unreasonable delay in connection with any such Transfer.

 

(d)           To the extent that any Qualified
Transferee acquires the Equity Collateral pledged to a Junior Lender pursuant
to the Junior Loan Documents in accordance with the provisions and conditions
of this Agreement (including, but not limited to Section 12 hereof), such Qualified Transferee shall
acquire the same subject to (i) the Senior Loan and the terms, conditions
and provisions of the Senior Loan Documents and (ii) the applicable Senior
Junior Loans and the terms, conditions and provisions of the applicable Senior
Junior Loan Documents, in each case for the balance of the term thereof, which
shall not be accelerated by Senior Lender or the related Senior Junior Lender
solely due to such acquisition and shall remain in full force and effect; provided, however,
that (A) such Qualified Transferee shall cause, within ten (10) days
after the transfer, (1) Senior Borrower and (2) the applicable Senior
Junior Borrowers, in each case to reaffirm in writing, subject to such
exculpatory provisions as shall be set forth in the Senior Loan Documents and
the related Senior Junior Loan Documents, as applicable, all of the terms,
conditions and provisions of the Senior Loan Documents and the related Senior
Junior Loan Documents, as applicable, on Senior Borrower’s or the applicable
Senior Junior Borrower’s, as applicable, part to be performed and (B) all
defaults under (1) the Senior Loan and (2) the applicable Senior
Junior Loans, in each case which remain uncured or unwaived as of the date of
such acquisition have been cured by such Qualified Transferee except for
defaults that are not susceptible of being cured by such Qualified Transferee; provided, that such defaults which are not
susceptible of being cured do not materially impair the value, use or operation
of the Premises taken as a whole, all as determined in the reasonable judgment
of Senior Lender and the applicable Senior Junior Lenders, or in the case of
defaults that can only be cured by the Junior Lender following its acquisition
of the Equity Collateral, the same shall be cured by the Junior Lender prior to
the expiration of the applicable Extended Non-Monetary Cure Period.

 

(e)           Nothing contained in Section 5(a) or this Section 6 is intended (i) to
limit any Loan Pledgee’s right under its financing documents with any Junior
Lender to foreclose against such Junior Lender, provided that such Loan Pledgee complies with the applicable
provisions of Section 16, or
(ii) if any such Loan Pledgee has foreclosed under its financing documents
as aforesaid, to limit such Loan Pledgee’s right to foreclose against the
applicable Junior Borrower’s interest in the Separate Collateral, provided that
Loan Pledgee complies with the applicable provisions of Section 5 and this Section 6.

 

Section 7.  Notice of
Rating Confirmation.  Each
Junior Lender shall promptly notify Senior Lender and each other Junior Lender
of any intended action relating to its respective Junior Loan which would
require Rating Agency Confirmation hereunder and shall cooperate with Senior
Lender in obtaining such confirmation. Senior Lender promptly shall notify
Junior Lenders of any intended action relating to the Senior Loan which would
so require Rating Agency Confirmation and shall cooperate with Junior Lenders
in obtaining such confirmation. The party whose actions necessitate or require
Rating Agency Confirmation shall pay all fees and expenses of the Rating
Agencies in connection with such request.

 

Section 8. 
Modifications, Amendments, etc.  (a) Senior Lender shall have the right
without the consent of any Junior Lender in each instance to enter into any
amendment, deferral, extension, modification, increase, renewal, replacement,
consolidation, supplement or waiver (collectively, a “Senior Loan Modification”) of the Senior
Loan or any of the Senior Loan Documents provided that no such Senior Loan
Modification shall (i) increase the interest rate or principal amount of
the Senior 

 

36

 

Loan except for increases in
principal to cover workout costs and enforcement costs (including closing costs
in connection therewith) and Protective Advances, (ii) increase in any
other material respect any monetary obligations of Senior Borrower under the
Senior Loan Documents, (iii) extend or shorten the scheduled maturity date
of the Senior Loan (other than by acceleration of the Senior Loan after the
lapse of any cure periods granted to any Junior Lender pursuant to the terms of
this Agreement or an extension option scheduled pursuant to the terms of the
Senior Loan Documents on the date hereof), (iv) increase the amount of any
principal payments required under the Senior Loan or modify any related
principal amortization schedule in a manner which would increase the amount of
principal payments except if increased in connection with (i) above,
(v) convert or exchange the Senior Loan into or for any other indebtedness
or subordinate any of the Senior Loan to any other indebtedness of Senior
Borrower, (vi) accept a grant of any lien on or security interest in any
collateral or property of Senior Borrower or any other Person not originally
granted or contemplated to be granted under the Senior Loan Documents,
(vii) modify, waive or amend the terms and provisions of the Senior Loan
Cash Management Agreement or the Senior Loan Agreement with respect to
(1) the definitions of “Acceptable Counterparty”, “Debt Service”, “Limited
Cure Release Amount”, “Release Amount” or “Spread Maintenance Premium” (as such
terms are defined in the Senior Loan Agreement and/or the Cash Management
Agreement), and any of the terms used within such definitions or the covenants
relating thereto, (2) any reserves or escrows, including, without
limitation, those for taxes, insurance, debt service, repairs, replacements and
ground rent, if any, or any provisions regarding the release of funds from
escrow (or waive compliance therewith) or reduce or, except as may be
reasonably required, increase monthly escrow deposit amounts, (3) any
future funding obligation or additional advances of loan proceeds, if any, or
(4) the amount of, manner, timing, method of the application of, or order
of priority in payment, of payments under the Senior Loan Documents or the
Junior Loan Documents, (viii) cross-default the Senior Loan with or
subordinate the Senior Loan to any other indebtedness, (ix) obtain any
equity interest in Senior Borrower or any Junior Borrower, or any contingent
interest, additional interest or so called “kicker” measured on the basis of
the cash flow or appreciation of the Premises, (x) consent to a higher
strike price with respect to the current or any new or extended interest rate
cap agreement entered into in connection with the Senior Loan or any extended
term of the Senior Loan or waive the requirement for an interest rate cap
agreement if now or in the future called for under the Senior Loan Documents or
waive or release any obligation of the counterparty under any interest rate cap
agreement, (xi) waive, amend or modify the transfer or encumbrance
provisions in the Senior Loan Documents, including, without limitation,
modifying the Release Amount or Limited Cure Release Amount, (xii) spread
the lien of any Mortgage to encumber additional real property (other than
pursuant to the Substitution provisions of the Senior Loan Agreement),
(xiii) extend the period during which voluntary prepayments are prohibited
or during which prepayments require the payment of a prepayment fee or premium
or yield or spread maintenance charge or impose any prepayment fee or premium
or yield or spread maintenance charge in connection with a prepayment of the
Senior Loan when none is now required or after the current maturity date of the
Senior Loan or increase the amount of such prepayment fee, premium or yield or
spread maintenance charge, (xiv) modify, waive or amend, in any material
respect, the terms and provisions of Section 6.1 of the Senior Loan
Agreement (including any deductibles, limits, qualifications of insurers or
terrorism insurance requirements), (xv) release its lien on any material
portion of the collateral originally granted under the Senior Loan Documents
(except as may be required in accordance with the terms of the Senior Loan
Documents), (xvi) amend or modify the definition of Event of Default under
the Senior Loan Documents, (xvii) impose any additional fees upon Senior
Borrower that would be required to be paid on a periodic or regular basis,
(xviii) add provisions which would prohibit or restrict any Junior Lender
(or any transferee of the interest in any Junior Loan) from acquiring the
interest of the applicable Junior Borrower by foreclosure of the applicable
Equity Collateral, (xix) impose any financial covenants on Senior Borrower
(or if such covenants exist, impose more restrictive financial covenants on
Senior Borrower); provided, however, in no event shall Senior Lender
be obligated to obtain any Junior Lender’s consent to a Senior Loan
Modification prohibited above in 

 

37

 

the case of a workout or other surrender,
extension, compromise, release, renewal, or indulgence relating to the Senior
Loan following the occurrence and continuance of an Event of Default under the
Senior Loan Documents, except, that (A) under no condition shall the
principal balance of Senior Loan be increased in violation of item (i)
above (with respect to increase in principal amount only) or the modifications
described in clauses (ix), (xiii) or (xvii) (except for any
workout fee payable to the Servicer of the Senior Loan following a
Securitization) above be made, without in each case the prior written consent
of each of the Junior Lenders and (B) during any Monetary Cure Period,
Extended Monetary Cure Period, Non-Monetary Cure Period or Extended
Non-Monetary Cure Period, provided that each Junior Lender is in compliance
with the provisions of Section 6
above, Senior Lender will not violate the provisions contained in
clauses (i) through (xix) above without the prior written consent of
each Junior Lender. In addition and notwithstanding the foregoing provisions of
this Section 8(a), any
amounts funded by Senior Lender pursuant to the Senior Loan Documents as a
result of (1) the making of any Protective Advances or other advances by
Senior Lender expressly permitted by the terms of the Senior Loan Documents, or
(2) interest accruals or accretions provided for in the Senior Loan
Documents as of the date hereof and any compounding thereof (including default
interest), shall not be deemed to contravene this Section 8(a); for the purposes of this sentence the
term “Protective Advances” shall
include all advances where the sums advanced are advanced for the benefit of
the Premises whether or not expressly provided for in the Senior Loan
Documents.

 

(b)           Each Subordinate Junior Lender shall
have the right without the consent of Senior Lender or any Senior Junior
Lender, in each instance to enter into any amendment, deferral, extension,
modification, increase, renewal, replacement, consolidation, supplement or
waiver (collectively, a “Junior Loan
Modification”) of its Junior Loan or Junior Loan Documents, provided, that without first receiving the
consent of Senior Lender and any applicable Senior Junior Lender, no such
Junior Loan Modification shall: (i) increase the interest rate or
principal amount of the applicable Junior Loan except for increases in
principal to cover workout costs and enforcement costs (including closing costs
in connection therewith) and Protective Advances, (ii) increase in any
other material respect any monetary obligations of the applicable Junior
Borrower under the applicable Junior Loan Documents, (iii) extend or
shorten the scheduled maturity date of the applicable Junior Loan (other than
by an acceleration of such Junior Loan after the lapse of any cure periods
granted to any Subordinate Junior Lender pursuant to the terms of this
Agreement), (iv) increase the amount of any principal payments required
under the applicable Junior Loan or modify any related principal amortization
schedule in a manner which would increase the amount of principal payments
except if increased in connection with (i) above, (v) convert or
exchange the applicable Junior Loan into or for any other indebtedness, or
subordinate any of such Junior Loan, to any indebtedness of the applicable
Junior Borrower, (vi) accept a grant of any lien on or security interest
in any collateral or property of the applicable Junior Borrower or any other
Person not originally granted or contemplated to be granted under the
applicable Junior Loan Documents, unless (x) such collateral or property
is owned by a Person other than such Junior Borrower and is not collateral for
the Senior Loan or any Senior Junior Loan and (y) the consent of Senior
Lender and the applicable Senior Junior Lender, is obtained if such consent is
required pursuant to the Senior Loan Documents or the applicable Senior Junior
Loan Documents, (vii) obtain any equity interest in Senior Borrower or any
Junior Borrower other than the applicable Junior Borrower, or any contingent
interest, additional interest or so called “kicker”, (viii) spread the
lien and security interest of the Pledge Agreement to encumber additional collateral,
(ix) cross-default the applicable Junior Loan with any other indebtedness
other than the Senior Loan and any Senior Junior Loan, (x) waive, amend or
modify the transfer or encumbrance provisions in the applicable Junior Loan
Documents, including, without limitation, modifying the Release Amount or
Limited Cure Release Amount, (xi) consent to a higher strike price with
respect to the current or any new or extended interest rate cap agreement
entered into in connection with the applicable Junior Loan or any extended term
of the applicable Junior Loan. In addition and notwithstanding the foregoing
provisions of this Section 8(b),
(a) any amounts funded by a Junior Lender under its respective Junior Loan

 

38

 

Documents as a result of (1) the making
of any Protective Advances or other advances by such Junior Lender expressly
permitted by the terms of its Junior Loan Documents as of the date hereof or
(2) interest accruals or accretions and any compounding thereof (including
default interest) shall not be deemed to contravene this Section 8(b). Notwithstanding the
foregoing, in addressing an Event of Default that has occurred under any Junior
Loan Documents, or if a Junior Lender in good faith believes that a Default (as
defined in the applicable Junior Loan Agreement) has occurred and Senior Lender
and the applicable Senior Junior Lenders, in their reasonable discretion,
concur that such Default under the applicable Junior Loan has occurred, the
applicable Junior Lender shall be permitted to amend or modify the applicable
Junior Loan in connection with a workout or other surrender, compromise,
release, renewal or modification of such Junior Loan, provided that under no conditions shall
the modifications described in clause (i) above (with respect to increases
in principal amounts only), clause (ii), clause (iii) (with respect
to shortening the maturity only), clause (iv), clause (v), or
clause (vii) above be made without the prior written consent of Senior
Lender and the applicable Senior Junior Lenders, and provided, further,
that any such amendment or modification shall not (x) increase the per
annum rate at which interest is payable under the applicable Junior Loan,
unless such additional interest accrues and is contingent and if no Event of
Default under the Senior Loan and any applicable Senior Junior Loans exists,
then such additional interest may be paid from excess net cash flow that would
otherwise be payable to Senior Borrower or any Junior Borrower or (y) require
any specified sums as amortization payments other than as now provided under
the applicable Junior Loan Documents (however, such Junior Lender will be
permitted to retain excess net cash flow that would otherwise be payable to
Senior Borrower or any applicable Junior Borrower and to apply such cash flow
to the amortization of the principal balance of the applicable Junior Loan or
to deferred interest under the applicable Junior Loan, subject to any prior
right to such funds under the Senior Loan Cash Management Agreement and any
applicable Senior Junior Loan Cash Management Agreement).

 

(c)           Each Senior Junior Lender shall have
the right without the consent of any applicable Subordinate Junior Lender, in
each instance to enter into any amendment, deferral, extension, modification,
increase, renewal, replacement, consolidation, supplement or waiver
(collectively, a “Senior Junior Loan
Modification”) of its Senior Junior Loan or Senior Junior Loan
Documents, provided, that without
first receiving the consent of any applicable Subordinate Junior Lender, no
such Senior Junior Loan Modification shall: (i) increase the interest rate
or principal amount of the applicable Senior Junior Loan except for increases
in principal to cover workout costs and enforcement costs (including closing
costs in connection therewith) and Protective Advances, (ii) increase in
any other material respect any monetary obligations of the applicable Senior
Junior Borrower under the applicable Senior Junior Loan Documents, (iii) extend
or shorten the scheduled maturity date of the applicable Senior Junior Loan
(other than by acceleration of such Senior Junior Loan after the lapse of any
cure periods granted to any Subordinate Junior Lender pursuant to the terms of
this Agreement or an extension option scheduled pursuant to the terms of the
Senior Junior Loan Documents on the date hereof)), (iv) increase the
amount of any principal payments required under the applicable Senior Junior
Loan or modify any related principal amortization schedule in a manner which
would increase the amount of principal payments except if increased in
connection with (i) above, (v) convert or exchange the applicable
Senior Junior Loan into or for any other indebtedness, or subordinate any of
such Senior Junior Loan, to any indebtedness of the applicable Senior Junior
Borrower, (vi) accept a grant of any lien on or security interest in any
collateral or property of the applicable Senior Junior Borrower or any other
Person not originally granted or contemplated to be granted under the
applicable Senior Junior Loan Documents, (vii) modify, waive or amend the
terms and provisions of the applicable Senior Junior Loan Cash Management
Agreement or the applicable Senior Junior Loan Agreement with respect to (1) the
definitions of “Acceptable Counterparty”, “Debt Service”, “Limited Cure Release
Amount”, “Release Amount” or “Spread Maintenance Premium” (as such terms are
defined in the applicable Senior Junior Loan Agreement and/or the applicable
Senior Junior Loan

 

39

 

Cash Management Agreement), and any of the
terms used within such definitions or the covenants relating thereto,
(2) any reserves or escrows, including, without limitation, those for
taxes, insurance, debt service, repairs, replacements and ground rent, if any,
or any provisions regarding the release of funds from escrow (or waive
compliance therewith) or reduce or, except as may be reasonably required,
increase monthly escrow deposit amounts, (3) any future funding obligation
or additional advances of loan proceeds, if any, or (4) the amount of,
manner, timing, method of the application of, or order of priority in payment,
of payments under the applicable Senior Junior Loan Documents or the applicable
Subordinate Junior Loan Documents, (viii) cross-default or subordinate the
applicable Senior Junior Loan to any other indebtedness other than the Senior
Loan and any more senior Senior Junior Loan, (ix) obtain any equity
interest in Senior Borrower or any Junior Borrower other than pursuant to an
Equity Collateral Enforcement Action permitted hereunder, or any contingent
interest, additional interest or so called “kicker”, (x) consent to a
higher strike price with respect to the current or any new or extended interest
rate cap agreement entered into in connection with the applicable Senior Junior
Loan or any extended term of the applicable Senior Junior Loan or waive the
requirement for a interest rate cap agreement if now or in the future called
for under the applicable Senior Junior Loan Documents or waive or release any
obligation of the counterparty under any interest rate cap agreement,
(xi) waive, amend or modify the transfer or encumbrance provisions in the
applicable Senior Junior Loan Documents, including, without limitation,
modifying the Release Amount or Limited Cure Release Amount, (xii) spread
the lien of the applicable Pledge Agreement to encumber additional collateral,
(xiii) extend the period during which voluntary prepayments are prohibited
or during which prepayments require the payment of a prepayment fee or premium
or yield maintenance charge or impose any prepayment fee or premium or yield or
spread maintenance charge in connection with a prepayment of the applicable
Senior Junior Loan when none is now required or after the current maturity date
of the applicable Senior Junior Loan or increase the amount of such prepayment
fee, premium or yield or spread maintenance charge, (xiv) modify, waive or
amend, in any material respect, the terms and provisions of Section 6.1 of
the applicable Senior Junior Loan Agreement, (xv) release its lien on any
material portion of the collateral originally granted under the applicable
Senior Junior Loan Documents (except as may be required in accordance with the
terms of the Senior Loan Documents, the more senior Senior Junior Loan
Documents or the applicable Senior Junior Loan Documents), (xvi) amend or
modify the definition of Event of Default under the applicable Senior Junior
Loan Documents, (xvii) impose any additional fees upon the applicable Senior
Junior Borrower that would be required to be paid on a periodic or regular
basis, (xviii) add provisions which would prohibit or restrict any other
Junior Lender (or any transferee of an interest in any other Junior Loan) from
acquiring the interest of the applicable Senior Junior Borrower by foreclosure
of the applicable Equity Collateral or (xix) impose any financial
covenants on the applicable Senior Junior Borrower (or if such covenants exist,
impose more restrictive financial covenants on the Senior Junior Borrower). In
addition and notwithstanding the foregoing provisions of this Section 8(c), (a) any amounts
funded by a Senior Junior Lender under its respective Senior Junior Loan
Documents as a result of (1) the making of any Protective Advances or
other advances by such Senior Junior Lender expressly permitted by the terms of
its Senior Junior Loan Documents as of the date hereof or (2) interest
accruals or accretions and any compounding thereof (including default interest)
shall not be deemed to contravene this Section 8(c);
provided, however, in no event shall the applicable
Senior Junior Lender be obligated to obtain any Subordinate Junior Lender’s
consent to a Senior Junior Loan Modification prohibited above in the case of a
workout or other surrender, extension, compromise, release, renewal, or
indulgence relating to the applicable Senior Junior Loan following the
occurrence and continuance of an Event of Default under the applicable Senior
Junior Loan Documents, except, that (A) under no condition shall the
principal balance of the applicable Senior Junior Loan be increased in
violation of item (i) above (with respect to increase in principal
amount only) or the provisions of item (viii), (xi) (with respect to
permitting additional indebtedness), (xiii), (xvii), (xviii) or
(xix) above be violated, without in each case the prior written consent of
each of the Subordinate Junior Lenders and (B) during any Junior Loan
Monetary Cure Period, Junior Loan Extended 

 

40

 

Monetary Cure Period, Junior Loan
Non-Monetary Cure Period or Junior Loan Extended Non-Monetary Cure Period, provided that each Subordinate Junior
Lender is in compliance with the provisions of Section 6
above, the applicable Senior Junior Lender will not violate the other
provisions of items (i) through (xix) above without the prior
written consent of each Subordinate Junior Lender.

 

(d)           Senior Lender shall deliver to Junior
Lenders promptly upon execution thereof, copies of any and all modifications,
amendments, extensions, consolidations, spreaders, restatements, alterations,
changes or revisions to any one or more of the Senior Loan Documents
(including, without limitation, any side letters, waivers or consents entered
into, executed or delivered by Senior Lender).

 

(e)           Each Junior Lender shall deliver to
Senior Lender and the other Junior Lenders promptly upon execution thereof,
copies of any and all modifications, amendments, extensions, consolidations,
spreaders, restatements, alterations, changes or revisions to any one or more
of its respective Junior Loan Documents (including, without limitation, any
side letters, waivers or consents entered into, executed or delivered by such
Junior Lender).

 

(f)            Each Junior Lender shall consent to
the amendment or modification of a Junior Borrower’s organizational documents
upon request by Senior Lender and/or the applicable Senior Junior Lender in
order to satisfy requests made by Rating Agencies rating any Certificates,
provided that such amendment or modification does not have a material adverse
effect on the Junior Loan and the costs and expenses thereof are not payable by
such Junior Lender.

 

Section 9.  Subordination
of Junior Loans and Junior Loan Documents.  (a) Except as otherwise provided in this
Agreement, each Junior Lender hereby subordinates and makes junior the Junior
Loan held by such Junior Lender, the related Junior Loan Documents and the
liens and security interests created thereby, and all rights, remedies, terms
and covenants contained therein to (i) the Senior Loan and the applicable
Senior Junior Loans, (ii) the liens and security interests created by the
Senior Loan Documents and the applicable Senior Junior Loan Documents, and
(iii) all of the terms, covenants, conditions, rights and remedies
contained in the Senior Loan Documents and the applicable Senior Junior Loan
Documents and no extensions, modifications, consolidations, supplements,
amendments, replacements and restatements of and/or to the Senior Loan
Documents or the applicable Senior Junior Loan Documents that are permitted by Section 8 shall affect the
subordination thereof as set forth in this Section 9.
Senior Lender and the Junior Lenders each hereby acknowledge and agree except
as set forth in Section 6(b) hereof,
that:

 

(A)          Senior Lender has not acquired, and
shall not hereafter acquire, any lien on, or any other interest whatsoever in
the Separate Collateral relating to any Junior Loan that is held by the related
Junior Lender, or any part thereof and that collection from such Separate
Collateral (including any Guaranty Claim), the exercise of remedies and
realization upon such Separate Collateral by such Junior Lender or any
applicable Loan Pledgee and the application of proceeds therefrom as such
Junior Lender deems appropriate in its discretion are, except as set forth in Section 6(b) hereof, expressly
permitted and shall not constitute a default or an event of default under this
Agreement, the Senior Loan Documents or the applicable Junior Loan Documents;

 

(B)           No other property of a Junior
Borrower is collateral for the Senior Loan;

 

(C)           No Senior Junior Lender has acquired,
and no Senior Junior Lender shall hereafter acquire, any lien on, or any other
interest whatsoever in the Separate Collateral relating solely to any Subordinate
Junior Loan that is held by the related Subordinate Junior Lender, or any part
thereof and that collection from any such Separate Collateral (including any
Guaranty Claim), the exercise of remedies and realization upon such Separate
Collateral by such Subordinate Junior Lender or any applicable Loan Pledgee and
the application of proceeds therefrom as such Subordinate Junior Lender deems
appropriate in its discretion are, except as set forth in Section 6(b) hereof, expressly
permitted and shall not constitute a default or an event of default under this
Agreement, the applicable Senior Junior Loan Documents or the applicable
Subordinate Junior Loan Documents;

 

41

 

(D)          No property of the applicable Subordinate
Junior Borrower is collateral for any Senior Junior Loan;

 

(E)           No Junior Borrower has any legal
obligations to pay the Senior Loan or to render any other performance under the
Senior Loan Documents and no Junior Borrower has any legal obligations to pay
any other Junior Loan or to render any other performance under the Junior Loan
Documents for any other Junior Loan; and

 

(F)           Senior Lender is not a creditor of
any Junior Borrower and no more senior Senior Junior Lender is a creditor of
any other more junior Subordinate Junior Borrower.

 

(b)           Except with respect to the Separate
Collateral or any Guaranty, every document and instrument included within the
Junior Loan Documents shall be subject and subordinate to each and every
document and instrument included within the Senior Loan Documents and the
applicable Senior Junior Loan Documents and all extensions, modifications,
consolidations, supplements, amendments, replacements and restatements of
and/or to the Senior Loan Documents and the applicable Senior Junior Loan
Documents to the extent such extensions, modifications, consolidations,
supplements, amendments, replacements and restatements are permitted by the
terms hereof.

 

Section 10.  Payment
Subordination. 
(a) Except (i) as otherwise expressly provided in this
Agreement and (ii) in connection with the exercise by a Junior Lender of
its rights and remedies with respect to the Separate Collateral (or, subject to
the terms of Section 6(b) hereof,
any Guaranty Claim) in accordance with the terms of this Agreement and the
application of the proceeds therefrom as Junior Lender deems appropriate in its
discretion, (x) all of such Junior Lender’s rights to payment of the
Junior Loan held by such Junior Lender and the obligations evidenced by the
related Junior Loan Documents are hereby subordinated to all of Senior Lender’s
rights to payment by Borrower of the Senior Loan and the obligations secured by
the Senior Loan Documents, and such Junior Lender shall not accept or receive
payments (including, without limitation, whether in cash or other property and
whether received directly, indirectly or by set-off, counterclaim or otherwise,
but excluding, the proceeds received from any bona fide third party in
connection with a secured party sale of such Junior Lender’s Equity Collateral,
which may be retained by such Junior Lender) from Borrower and/or from the
Premises prior to the date that all of the Senior Loan Liabilities then due to
Senior Lender under the Senior Loan Documents are paid in full and (y) all
of such Junior Lender’s rights to payment of the Junior Loan held by such
Junior Lender and the obligations evidenced by the related Junior Loan
Documents are hereby subordinated to all of the applicable Senior Junior Lender’s
rights to payment by the applicable Senior Junior Borrowers of the applicable
Senior Junior Loans and the obligations secured by the applicable Senior Junior
Loan Documents, and such Junior Lender shall not accept or receive payments
(including, without limitation, whether in cash or other property and whether
received directly, indirectly or by set-off, counterclaim or otherwise, but
excluding, the proceeds received from any bona fide third party in connection
with a secured party sale of such Junior Lender’s Equity Collateral, which may
be retained by such Junior Lender) from Borrower, the Premises, from the
applicable Senior Junior Borrower and/or the proceeds from items identified in
clauses (i) or (ii) of the definition of Separate Collateral
(but excluding, the proceeds received from any bona fide third party in
connection with a secured party sale of such Junior Lender’s Equity Collateral
or any Guaranty Claim) securing or guaranteeing the applicable Senior Junior
Loans prior to the date that all obligations of the applicable Senior Junior
Borrowers then due to the applicable Senior Junior Lenders under the applicable
Senior Junior Loan Documents are paid in full.

 

(b)           If (i) a Proceeding with respect
to Senior Borrower shall have occurred and has not been dismissed or
(ii) there shall have occurred and be continuing an Event of Default under
the Senior Loan Documents, after giving effect to Junior Lender’s cure rights
pursuant to Section 12,
except as expressly otherwise provided herein, Senior Lender shall be entitled
to receive payment and performance in full of all amounts due or to become due
to Senior Lender before any Junior Lender is 

 

42

 

entitled to receive any payment (including
any payment which may be payable by reason of the payment of any other
indebtedness of Senior Borrower being subordinated to the payment of the Junior
Loans) on account of any Junior Loan (other than payments with respect to a
Junior Lender’s Separate Collateral permitted pursuant to this Agreement). If
(i) a Proceeding with respect to Senior Junior Borrower shall have
occurred and has not been dismissed or (ii) there shall have occurred and
be continuing an Event of Default under the Senior Junior Loan Documents, after
giving effect to Subordinate Junior Lender’s cure rights pursuant to Section 12, the Senior Junior Lender
holding the applicable Senior Junior Loan shall be entitled to receive payment
and performance in full of all amounts due or to become due to such Senior
Junior Lender before any applicable Subordinate Junior Lender is entitled to
receive any payment (including any payment which may be payable by reason of
the payment of any other indebtedness of any Junior Borrower being subordinated
to the payment of the applicable Senior Junior Loans) on account of any
applicable Subordinate Junior Loan (other than payments with respect to any
applicable Subordinate Junior Lender’s Separate Collateral permitted pursuant
to this Agreement). All payments or distributions upon or with respect to a
Junior Loan which are received by a Junior Lender contrary to the provisions of
this Agreement shall be received by such Junior Lender in trust for the benefit
of Senior Lender and the applicable Senior Junior Lenders to the extent payable
to Senior Lender or the applicable Senior Junior Lenders and shall be paid
within two (2) Business Days of receipt thereof over first to Senior
Lender to the extent then payable to Senior Lender and then to the applicable
Senior Junior Lenders in the same form as so received (with any necessary
endorsement) to be applied (in the case of cash) to, or held as collateral (in
the case of non-cash property or securities) for, the payment or performance
first of the Senior Loan Liabilities in accordance with the terms of the Senior
Loan Documents and then for, the payment or performance of the applicable
Senior Junior Loan Liabilities in accordance with the terms of the Senior
Junior Loan Documents. Nothing contained herein shall prohibit a Junior Lender
from making Protective Advances (and adding the amount thereof to the principal
balance of its Junior Loan) notwithstanding the existence of a default under
the Senior Loan at such time.

 

(c)           Notwithstanding anything to the
contrary contained in this Agreement, including, without limitation, Sections 10(a) and (b), provided
that (x) after giving effect to each Junior Lender’s cure rights pursuant
to Section 12 hereof, no
Event of Default shall exist and be continuing under the Senior Loan Documents
or the applicable Senior Junior Loan Documents, or Junior Lender shall be
pursuing its rights with respect to an Extended Non-Monetary Cure Period in
accordance with and subject to the terms and conditions set forth in Section 12 of this Agreement with
respect thereto and (y) the maturity date of the Senior Loan and the
applicable Senior Junior Loan (in each case, as the same may be extended) has
not occurred or been accelerated (unless following any such acceleration the
Senior Loan and/or the applicable Senior Junior Loan was reinstated and no
Event of Default exists thereunder):

 

(i)            a Junior Lender may accept and
retain current and delinquent payments due and payable from time to time which
the applicable Junior Borrower is obligated to pay to such Junior Lender, or
prepayments permitted to be made by such Junior Borrower, in either case in
accordance with the terms and conditions of the applicable Junior Loan
Documents. If funds are distributed to a Junior Lender in accordance with the
Senior Loan Documents or the applicable Senior Junior Loan Documents, Senior
Lender and the applicable Senior Junior Lender agrees that, absent clear
evidence of error, such distribution shall be deemed to have been properly paid
to such Junior Lender and may be accepted and retained by such Junior Lender;

 

(ii)           a Junior Lender may accept and retain
amounts received in connection with the exercise of its rights and remedies
with respect to the Separate Collateral (or, subject to the terms of Section 6(b) hereof, any
Guaranty Claim) in accordance with this Agreement; and

 

(iii)          a Junior Lender may accept and retain
prepayments of its respective Junior Loan, together with any prepayment fee
payable pursuant to such Junior Loan Documents, from funds 

 

43

 

other
than those funds held in the Senior Cash Management Account (as defined in the
Senior Loan Agreement) or any applicable Senior Junior Loan Cash Management
Account.

 

(d)           Subject to the terms and provisions
of Section 6 hereof, a
Junior Lender may, in its sole and absolute discretion without Senior Lender’s
or any Senior Junior Lender’s consent, take any Equity Collateral Enforcement
Action or Separate Collateral Enforcement Action; provided, however,
(i) such Junior Lender shall, prior to commencing any Equity Collateral
Enforcement Action, give the Senior Lender and the applicable Senior Junior
Lenders written notice of the default which would permit such Junior Lender to
commence such Equity Collateral Enforcement Action, as well as provide Senior
Lender and the applicable Senior Junior Lenders with copies of any and all
material notices, pleadings, agreements, motions and briefs served upon,
delivered to or with any party to any Equity Collateral Enforcement Action,
(ii) such Junior Lender shall keep the Senior Lender and the applicable
Senior Junior Lenders reasonably apprised as to the status of any Equity
Collateral Enforcement Action and (iii) if and to the extent that a
Qualified Transferee acquires all of the ownership interests in an applicable
Junior Borrower pursuant to an Equity Collateral Enforcement Action in
accordance with the terms of this Agreement, then upon, from and after the
vesting of title thereto, such Junior Lender’s rights pursuant to Section 12 and Section 14 and the obligations of
Senior Lender and the applicable Senior Junior Lenders pursuant to Section 12 and Section 14 with respect to such
Junior Lender shall be null and void and of no further force and effect and
every other provision in this Agreement which references such Sections, rights
or obligations shall thereafter be read as if such reference, right or
obligation were not contained or specified therein with respect to such Junior
Lender. Nothing in this Agreement is intended to create and this Agreement does
not create any security interest by any Junior Lender in favor of Senior Lender
and the applicable Senior Junior Lenders and shall not constitute a guarantee
by any Junior Lender of its respective Junior Borrower’s obligations under the
applicable Junior Loan Documents.

 

(e)           In the event of a casualty to the
buildings or improvements constructed on any portion of the Premises or a
condemnation or taking under a power of eminent domain of all or any portion of
the Premises, the buildings or improvements thereon, Senior Lender shall have a
first and prior interest in and to any payments, awards, proceeds,
distributions, or consideration arising from any such event after deducting the
costs of collection (the “Award”),
provided that if the amount of
the Award is in excess of the Adjusted Release Amount (as defined in the Senior
Loan Agreement) due the Senior Lender under the Senior Loan Documents, such
excess Award or portion to be so remitted shall be applied, to the extent
permitted under the Senior Loan Documents, as follows: (i) first, to the
First Mezzanine Lender in the amount of the First Mezzanine Adjusted Release
Amount (as defined in the Senior Loan Agreement) due the First Mezzanine Lender
under the First Mezzanine Loan Documents, (ii) second, to the Second
Mezzanine Lender in the amount of the Second Mezzanine Adjusted Release Amount
(as defined in the Senior Loan Agreement) due the Second Mezzanine Lender under
the Second Mezzanine Loan Documents, (iii) third, to the Third Mezzanine
Lender in the amount of the Third Mezzanine Adjusted Release Amount (as defined
in the Senior Loan Agreement) due the Third Mezzanine Lender under the Third
Mezzanine Loan Documents, (iv) fourth, to the Fourth Mezzanine Lender in
the amount of the Fourth Mezzanine Adjusted Release Amount (as defined in the
Senior Loan Agreement) due the Fourth Mezzanine Lender under the Fourth
Mezzanine Loan Documents, (v) fifth, to the Fifth Mezzanine Lender in the
amount of the Fifth Mezzanine Adjusted Release Amount (as defined in the Senior
Loan Agreement) due the Fifth Mezzanine Lender under the Fifth Mezzanine Loan
Documents, (vi) sixth, to the Sixth Mezzanine Lender in the amount of the
Sixth Mezzanine Adjusted Release Amount (as defined in the Senior Loan
Agreement) due the Sixth Mezzanine Lender under the Sixth Mezzanine Loan
Documents, (vii) seventh, to the Seventh Mezzanine Lender in the amount of
the Seventh Mezzanine Adjusted Release Amount (as defined in the Senior Loan
Agreement) due the Seventh Mezzanine Lender under the Seventh Mezzanine Loan
Documents, and (viii) eighth, to Senior Borrower. In the event of any
competing claims, Senior Lender shall continue to hold such excess Award until
Senior Lender receives an agreement signed by all 

 

44

 

parties making a claim to the excess Award or
a final order of a court of competent jurisdiction directing Senior Lender as
to how the excess Award is to be distributed. Notwithstanding the foregoing, in
the event of a casualty or condemnation, Senior Lender shall release the Awards
in any such event to Senior Borrower if and to the extent required by the terms
and conditions of the Senior Loan Documents in order to repair and restore the
Premises or any portion thereof in accordance with the terms and provisions of
the Senior Loan Documents. Awards made available to Senior Borrower for the
repair or restoration of the Premises or any portion thereof shall not be
subject to attachment by any Junior Lender, but this sentence is not intended
to otherwise affect any lien, if any, that a Junior Lender may have upon such
proceeds. Senior Lender shall use reasonable efforts to promptly
(x) notify each Junior Lender of any requests by Senior Borrower for the
release of any Award and (y) provide each Junior Lender with any documentation
delivered by Senior Borrower to Senior Lender with respect to any such request
by Senior Borrower for the release of any Award.

 

(f)            With respect to any insurance
policies (collectively, the “Policies”)
for the Premises for which a Junior Lender and/or its Affiliate are identified
as “named insureds” or “additional insureds”, until such time as the Senior
Loan has been paid in full, each Junior Lender acknowledges and agrees that no
Junior Lender nor any of its Affiliates shall have any right whatsoever to
(i) contest or challenge (in their capacity as named insureds) any such
settlement or adjustment approved by Senior Lender, (ii) disapprove any
settlement or adjustment of any claim or any distribution of proceeds under the
Policies approved by Senior Lender, or (iii) be issued checks, drafts or
wires (jointly or otherwise) representing proceeds of the Policies. Nothing
contained in this subparagraph (f) is meant to limit any rights that
a Junior Lender has under its respective Junior Loan Documents to approve of
any action taken by the applicable Junior Borrower. Senior Lender shall, at a
Junior Lender’s request, advise such Junior Lender from time to time as to the
status of any settlement or adjustment of any claim or any distribution of proceeds
under the Policies.

 

Section 11.  Rights of
Subrogation; Bankruptcy.

 

(a)  Marshalling of Assets and Information.  Each Junior Lender and Senior Lender hereby
waives any requirement for marshaling of assets hereby or the right to assert
that an election of remedies has occurred in connection with any foreclosure of
any security interest or any other realization upon collateral in respect of
the Senior Loan Documents or the Junior Loan Documents, as applicable, or any
exercise of any rights of set-off or otherwise. Each of the Junior Lenders and
Senior Lender assumes all responsibility for keeping itself informed as to the
condition (financial or otherwise) of Senior Borrower, each Junior Borrower,
the condition of the Premises and all other collateral and other circumstances
and, except for notices expressly required by this Agreement, neither Senior
Lender nor any Junior Lender shall have any duty whatsoever to obtain, advise
or deliver information or documents to the others relative to such condition, business,
assets and/or operations.

 

(b)  Fiduciary Duties.  Each Junior Lender agrees that Senior Lender
owes no fiduciary duty to any Junior Lender in connection with the
administration of the Senior Loan and the Senior Loan Documents and each Junior
Lender agrees not to assert any such claim. Senior Lender agrees that none of
the Junior Lenders owes any fiduciary duty to Senior Lender in connection with
the administration of the Junior Loans and the Junior Loan Documents and Senior
Lender agrees not to assert any such claim. Each Junior Lender agrees that no
Junior Lender owes any fiduciary duty to any other Junior Lenders in connection
with the administration of a Junior Loan and the related Junior Loan Documents
and each Junior Lender agrees not to assert any such claim.

 

(c)  Payments, Distributions and Protective Advances.  No payment or distribution to Senior Lender
pursuant to the provisions of this Agreement and no Protective Advance by a
Junior Lender and no other action taken by a Junior Lender to cure any default
under the Senior Loan Documents shall entitle such Junior Lender to exercise
any right of subrogation in respect thereof or provide such Junior Lender with
any claim against Senior Borrower, in each case, prior to the payment in full
of the 

 

45

 

Senior Loan Liabilities, and each of the
Junior Lenders agrees that, except with respect to the enforcement of its
remedies under the Junior Loan Documents related to the Junior Loan held by
such Junior Lender permitted hereunder, prior to the satisfaction of all Senior
Loan Liabilities it shall not acquire, by subrogation or otherwise, any lien,
estate, right or other interest in any portion of the Premises or any other
collateral now securing the Senior Loan or the proceeds therefrom that is or
may be prior to, or of equal priority to, any of the Senior Loan Documents or
the liens, rights, estates and interests created thereby. No payment or
distribution to any applicable Senior Junior Lender pursuant to the provisions
of this Agreement and no Protective Advance by a Junior Lender and no other
action taken by a Junior Lender to cure any default under the Senior Junior
Loan Documents shall entitle such Junior Lender to exercise any right of
subrogation in respect thereof prior to the payment in full of the applicable
Senior Junior Loan Liabilities, and each Junior Lender agrees that, except with
respect to the enforcement of its remedies under the Junior Loan Documents
related to the Junior Loan held by such Junior Lender permitted hereunder,
prior to the satisfaction of all applicable Senior Junior Loan Liabilities it
shall not acquire, by subrogation or otherwise, any lien, estate, right or
other interest in any portion of the Premises, the Separate Collateral of any
applicable Senior Junior Lender or any other collateral now securing the Senior
Loan or any applicable Senior Junior Loan or the proceeds therefrom that is or
may be prior to, or of equal priority to, any of the applicable Senior Junior Loan
Documents or the Senior Loan Documents or the liens, rights, estates and
interests created thereby.

 

(d)  Bankruptcy.  (i) Subject to Section 31 of this Agreement, the
provisions of this Agreement shall be applicable both before and after the
commencement, whether voluntary or involuntary, of any case, proceeding or
other action by or against Senior Borrower, any Junior Borrower or any SPE
Constituent Entity under any existing or future law of any jurisdiction
relating to bankruptcy, insolvency, reorganization or relief of debtors or any
assignment by Borrower for the benefit of creditors (a “Proceeding”).

 

(i)            For as long as the Senior Loan shall
remain outstanding, none of the Junior Lenders shall solicit, direct or cause
Borrower or any other entity which Controls Senior Borrower (the “Borrower Group”) or any other Person to:
(1) commence any Proceeding against Senior Borrower or any SPE Constituent
Entity; (2) institute proceedings to have Senior Borrower or any SPE
Constituent Entity adjudicated a bankrupt or insolvent; (3) consent to, or
acquiesce in, the institution of bankruptcy or insolvency proceedings against
Senior Borrower or any SPE Constituent Entity; (4) file a petition or
consent to the filing of a petition seeking reorganization, arrangement,
adjustment, winding-up, dissolution, composition, liquidation or other relief
by or on behalf of Senior Borrower or any SPE Constituent Entity; (5) seek
or consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator, custodian or any similar official for Senior Borrower or any SPE
Constituent Entity or a substantial portion of any of its respective property,
including without limitation, the Premises, or any portion thereof, and any
other collateral securing the Senior Loan, or any portion thereof;
(6) make an assignment for the benefit of any creditor of Senior Borrower
or any SPE Constituent Entity; (7) seek to consolidate the Premises or any
other assets of Senior Borrower or any SPE Constituent Entity with the assets
of any Junior Borrower or any member of the Borrower Group in any proceeding
relating to bankruptcy, insolvency, reorganization or relief of debtors;
(8) seek to consolidate Senior Borrower with any Junior Borrower or any
member of Borrower Group; or (9) take any action in furtherance of any of
the foregoing. The terms and provisions of this Section 11(d) apply to each Junior Lender solely
in its respective capacity as a Junior Lender. If any Junior Lender commences
an Equity Collateral Enforcement Action against any Junior Borrower, and
pursuant to such Equity Collateral Enforcement Action, such Junior Lender takes
title to the Equity Collateral of such Junior Borrower, from and after the date
title to such Equity Collateral is vested in such Junior Lender (as applicable),
such Junior Lender shall be bound by the terms and provisions of the respective
organizational documents of such Junior Borrower regarding bankruptcy and all
matters requiring 

 

46

 

the
vote of the independent directors/managers/members of such Junior Borrower.
Subject to the limitations set forth herein, each Junior Lender will have the
right to appear in such Proceeding to protect its interest in the relevant
Equity Collateral, in the Junior Lender’s capacity as pledgee of the Equity
Collateral.

 

(ii)           In the event that a Junior Lender is
deemed to be a creditor of Senior Borrower in any Proceeding: (1) each of
the Junior Lenders hereby agrees that it shall not make any election, give any
consent, commence any action or file any motion, claim, obligation, notice or
application or take any other action in any Proceeding by or against Senior
Borrower or any SPE Constituent Entity without the prior consent of Senior
Lender, except to the extent necessary to preserve or realize upon such Junior
Lender’s interest in any Separate Collateral pledged to such Junior Lender
pursuant to the Junior Loan Documents related to the Junior Loan held by such
Junior Lender; provided, however, that any such filing shall not be
as a creditor of the Senior Borrower; (2) Senior Lender may vote in any
such Proceeding any and all claims of such Junior Lender, and each of the
Junior Lenders hereby appoints the Senior Lender as its agent, and grants to
the Senior Lender an irrevocable power of attorney coupled with an interest,
and its proxy, for the purpose of exercising any and all rights and taking any
and all actions available to such Junior Lender in connection with any case by
or against Senior Borrower or any SPE Constituent Entity in any Proceeding,
including without limitation, the right to file and/or prosecute any claims, to
vote to accept or reject a plan, to make any election under Section 1111(b) of
the Bankruptcy Code, provided, however, that with respect to any proposed
plan of reorganization in respect of which creditors are voting, Senior Lender
may vote on behalf of such Junior Lender only if the proposed plan would result
in Senior Lender being “impaired” (as such term is defined in the United States
Bankruptcy Code); and (3) no Junior Lender shall challenge the validity or
amount of any claim submitted in such Proceeding by Senior Lender in good faith
or any valuations of the Premises, or any portion thereof, or other Senior Loan
collateral submitted by Senior Lender in good faith, in such Proceeding or take
any other action in such Proceeding, which is adverse to Senior Lender’s
enforcement of its claim or receipt of adequate protection (as that term is
defined in the Bankruptcy Code); provided,
however that no such valuations
submitted in such Proceeding by Senior Lender shall be binding upon any Junior
Lender in any Proceeding concerning any other Person, including, without
limitation, any Junior Borrower, any member of the Junior Borrower Group, or
any Affiliate thereof. Prior to Securitization of the Senior Loan (or after a
Securitization of the Senior Loan if Senior Lender owns all of the
Certificates), Senior Lender shall not have the rights provided in this Section 11(d)(iii) if Senior
Lender is an Affiliate of Senior Borrower.

 

(iii)          For as long as any applicable Senior
Junior Loan with respect to a Junior Lender shall remain outstanding, such
Junior Lender shall not, and shall not solicit any Person to, and shall not
direct or cause the Junior Borrower under the Junior Loan held by such Junior
Lender to direct or cause such Junior Borrower or any entity which Controls
such Junior Borrower (as applicable, the “Junior
Borrower Group”) to: (1) commence any Proceeding against any
applicable Senior Junior Borrower; (2) institute proceedings to have any
applicable Senior Junior Borrower adjudicated a bankrupt or insolvent;
(3) consent to, or acquiesce in, the institution of bankruptcy or
insolvency proceedings against any applicable Senior Junior Borrower;
(4) file a petition or consent to the filing of a petition seeking
reorganization, arrangement, adjustment, winding-up, dissolution, composition,
liquidation or other relief by or on behalf of any applicable Senior Junior
Borrower; (5) seek or consent to the appointment of a receiver,
liquidator, assignee, trustee, sequestrator, custodian or any similar official
for any applicable Senior Junior Borrower, Separate Collateral for any
applicable Senior Junior Loan (or any portion thereof) or any other collateral
securing any applicable Senior Junior Loan (or any portion thereof);
(6) make an assignment for the benefit of any creditor of any applicable
Senior Junior Borrower; (7) seek to consolidate the Separate Collateral
for any applicable Senior Junior Loan (or any portion thereof) or any other 

 

47

 

assets
of any applicable Senior Junior Borrower with the assets of the Junior Borrower
under the Junior Loan held by such Junior Lender or any member of the
applicable Junior Borrower Group in any proceeding relating to bankruptcy,
insolvency, reorganization or relief of debtors; (8) seek to consolidate
any applicable Senior Junior Borrower with any Subordinate Junior Borrower or
any member of Junior Borrower Group for a Subordinate Junior Borrower; or
(9) take any action in furtherance of any of the foregoing.

 

(iv)          In the event that a Junior Lender is
deemed to be a creditor of any applicable Senior Junior Borrower in any
Proceeding: (1) such Junior Lender hereby agrees that it shall not make
any election, give any consent, commence any action or file any motion, claim,
obligation, notice or application or take any other action in any Proceeding by
or against any applicable Senior Junior Borrower without the prior consent of the
applicable Senior Junior Lenders, except to the extent necessary to preserve or
realize upon its interest in the Equity Collateral; provided, however,
that any such filing shall not be as a creditor of any applicable Junior
Borrower; (2) the applicable Senior Junior Lenders in their respective
order of priority may vote in any such Proceeding any and all claims of such
Junior Lender, and such Junior Lender hereby appoints the applicable Senior
Junior Lenders in their respective order of priority as its agent, and grants
to the applicable Senior Junior Lenders in their respective order of priority
an irrevocable power of attorney coupled with an interest, and its proxy, for
the purpose of exercising any and all rights and taking any and all actions
available to the applicable Senior Junior Lenders in connection with any case
by or against the applicable Senior Junior Borrowers in any Proceeding,
including without limitation, the right to file and/or prosecute any claims, to
vote to accept or reject a plan, to make any election under Section 1111(b) of
the Bankruptcy Code, provided, however, that with respect to any proposed
plan of reorganization in respect of which creditors are voting, the applicable
Senior Junior Lenders in their respective order of priority may vote on behalf
of such Junior Lender only if the proposed plan would result in such applicable
Senior Junior Lender being “impaired” (as such term is defined in the United
States Bankruptcy Code); and (3) such Junior Lender shall not challenge
the validity or amount of any claim submitted in such Proceeding by any
applicable Senior Junior Lender in good faith or any valuations of the Separate
Collateral for such Senior Junior Lender’s Senior Junior Loan or other
collateral for such applicable Senior Junior Loan submitted by such applicable
Senior Junior Lender in good faith, in such Proceeding or take any other action
in such Proceeding, which is adverse to enforcement by any applicable Senior
Junior Lender of its claim or receipt of adequate protection (as that term is
defined in the Bankruptcy Code); provided,
however that no such valuations
submitted in such Proceeding by Senior Junior Lender shall be binding upon any
Junior Lender in any Proceeding concerning any other Person, including, without
limitation, any Junior Borrower, any member of the Junior Borrower Group, or
any Affiliate thereof. No Senior Junior Lender shall have the rights provided
in this Section 11(d)(v) if
such Senior Junior Lender is an Affiliate of Borrower.

 

(v)           The terms and provisions of this Section 11(d) apply to each
Junior Lender solely in its capacity as a Junior Lender.

 

Section 12.  Rights of
Cure.

 

(a)  Senior Loan Default.  Prior to Senior Lender commencing any
Enforcement Action under the Senior Loan Documents, Senior Lender shall provide
written notice of such default to each Junior Lender and any Loan Pledgee
entitled to notice thereof pursuant to Section 16
of this Agreement, whether or not Senior Lender is obligated to give notice
thereof to Senior Borrower (each, a “Senior
Loan Default Notice”). In the event Senior Lender has delivered a
Senior Loan Default Notice pursuant to Sections 12(a)(i) or
(ii) below which has not
been cured by a Junior Lender, Senior Lender shall provide the Junior Lenders
with copies of any and all material notices relating to such Event of Default,
pleadings, agreements, motions and briefs served upon, delivered to or with any
party to any Enforcement Action and otherwise keep the Junior Lenders
reasonably apprised as to the current 

 

48

 

status of any Enforcement Action. Prior to or
concurrently with undertaking any curative action with respect to the Senior
Loan, a Junior Lender shall provide the other Junior Lenders with written
notice thereof. Senior Lender shall permit the Junior Lenders an opportunity to
cure such default in accordance with the following terms:

 

(i)            Monetary
Default.  If the default
identified in the Senior Loan Default Notice is a monetary default relating to
(1) any scheduled payment of principal or interest, or (2) the
payment of any other liquidated sum of money, Junior Lenders shall have until
ten (10) Business Days after the later of (a) the receipt (or deemed
receipt) of the Senior Loan Default Notice or (b) expiration of the Senior
Borrower’s cure period, if any, to cure such monetary default (a “Monetary Cure Period”); provided, however,
that in the event a Junior Lender elects to cure such monetary default, such
Junior Lender hereby agrees (x) to indemnify, defend and hold harmless
Senior Lender for all cost, expenses, losses, liabilities, obligations,
damages, penalties, and disbursements arising under any pooling and servicing
agreement applicable to the Senior Loan to the extent imposed on, incurred by
or asserted against Senior Lender due to or arising from such Monetary Cure
Period, (y) without duplication of the foregoing, to reimburse Senior
Lender for any interest charged by Senior Lender or the servicer on any
advances for monthly payments of principal and/or interest on the Senior Loan
and/or on any Protective Advances during the Monetary Cure Period arising under
the applicable pooling and servicing agreement, and (z) if the monetary
default is not cured within the Monetary Cure Period but is thereafter cured by
a Junior Lender, to pay Senior Lender the excess of interest accruing at the
Default Rate (without duplication) over interest accruing at the Interest Rate
under the Senior Loan for the number of days beyond the expiration of such
Monetary Cure Period that the default to which such Monetary Cure Period
related continued uncured, less any amounts paid by such Junior Lender under
(y) above. A Junior Lender shall not be required, in order to effect a
cure hereunder during the Monetary Cure Period, to pay any late charges or
(other than the cure by a Junior Lender of a default in the payment of the
Senior Loan in full on the maturity date thereof) any interest at the Default
Rate under the Senior Loan Documents (irrespective of any cure of such default by
a Junior Lender pursuant to the provisions of this Agreement), and no late
charges or interest at the Default Rate shall accrue against such Junior Lender
for such period. There shall be no right to cure as hereinabove set forth with
respect to monthly scheduled interest and principal payments for a period of
more than six (6) consecutive months (regardless of which Junior Lender
has cured such monetary default) unless such Junior Lender seeking to cure
beyond such six (6) month period has commenced and is continuing to
diligently pursue its rights against such Junior Lender’s Equity Collateral, in
which case such Junior Lender shall be entitled to continue curing such
monetary defaults involving monthly scheduled interest and principal payments
until the occurrence of any voluntary or involuntary Proceeding involving
Senior Borrower (such additional monetary cure period, an “Extended Monetary Cure Period”). In the
event more than one Junior Lender cures any monetary default in accordance with
the terms of this Section, Senior Lender hereby agrees (x) to accept the
cure from the junior most Junior Lender and (y) to return to any Senior
Junior Lender(s) within three (3) Business Days of accepting such
cure from the junior most Junior Lender any funds tendered by the Senior Junior
Lender(s). The cure period for a Junior Lender with respect to a monetary
default shall run concurrently with the cure period for the other Junior
Lenders with respect to such monetary default and in no event sequentially.
Notwithstanding the foregoing, if one Junior Lender has satisfied the
conditions for an Extended Monetary Cure Period with respect to defaults
involving monthly scheduled interest and principal payments as set forth above
and thereafter ceases to qualify for such Extended Monetary Cure Period (either
by failing to make cure payments or failing to diligently pursue its rights
against its Equity Collateral) then (A) such Junior Lender’s cure rights
with respect to all monetary defaults shall immediately terminate (unless
Borrower shall have cured all defaults and reinstated the Senior Loan in good
standing) and (B) notwithstanding any of the other Junior Lender’s earlier

 

49

 

election
not to cure the defaults involving monthly scheduled interest and principal
payments, such other Junior Lenders shall be entitled to succeed to all rights
under the existing Extended Monetary Cure Period, upon written notice to the
Senior Lender, so long as such other Junior Lender promptly commences and
thereafter diligently pursues its rights against its Equity Collateral, makes
all cure payments and otherwise satisfies the provisions of this Section 12. If the default referenced
in a Senior Loan Default Notice has been cured such that there is no longer an
Event of Default under the Senior Loan Documents, the Junior Lenders shall have
the same Monetary Cure Period with respect to any future Senior Loan Default
Notice.

 

(ii)           Non-Monetary
Default.  If the default is of
a non-monetary nature (for so long as such non-monetary default is not caused
by a Proceeding of Senior Borrower or during such Non-Monetary Cure Period (as
defined herein) a Proceeding of Senior Borrower does not occur), each Junior
Lender shall have until the later of (a) ten (10) Business Days from
the receipt (or deemed receipt) of the Senior Loan Default Notice and
(b) the expiration of the Senior Borrower’s cure period to cure such
non-monetary default (a “Non-Monetary Cure
Period”); provided, however, if such non-monetary default
cannot reasonably be cured within such period or if no cure period is provided
and, if applicable, curative action was commenced by such Junior Lender within
the Non-Monetary Cure Period and, if there is a cure period, is being
diligently pursued by a Junior Lender (or with respect to a non-monetary
default that is not susceptible of cure, if a Junior Lender shall be diligently
pursuing the foreclosure of its Equity Collateral and such non-monetary default
does not materially impair the value, use or operation of the Premises, all as
determined in the reasonable judgment of Senior Lender), then such Junior
Lender only shall be given an additional period of time as is reasonably
necessary for such Junior Lender in the exercise of due diligence to cure such
non-monetary default (or, in the case of any such non-monetary default as
described above that is not susceptible of cure, then such Junior Lender shall
be given an additional period of time as is reasonably necessary for such
Junior Lender in the exercise of due diligence to complete such foreclosure),
for so long as (1) such Junior Lender diligently and expeditiously
proceeds to cure such non-monetary default (or with respect to a non-monetary
default that is not susceptible of cure, if such Junior Lender shall be
diligently pursuing the foreclosure of its Equity Collateral and such
non-monetary default does not materially impair the value, use or operation of
the Premises, all as determined in the reasonable judgment of Senior Lender),
(2) timely payment of Senior Lender’s regularly scheduled monthly interest
and amortization payments under the Senior Loan and any other amounts due under
the Senior Loan Documents is made, (3) such additional period of time does
not exceed sixty (60) days, unless such non-monetary default is of a
nature that cannot be cured within such sixty (60) days without ownership
of such Junior Lender’s Equity Collateral or is not susceptible to cure, in
which case such Junior Lender shall have such additional time as is reasonably
necessary to gain ownership of its Equity Collateral, provided that such Junior
Lender is continuously and diligently pursuing the ownership of its Equity
Collateral and such non-monetary default does not materially impair the value,
use or operation of the Premises, all as determined in the reasonable judgment
of Senior Lender, (4) such non-monetary default is not caused by a
Proceeding of Senior Borrower or during such Non-Monetary Cure Period a Proceeding
of Senior Borrower does not occur, and (5) during such Non-Monetary Cure
Period, with respect to such non-monetary default (and any additional period of
time provided for above), there is no further material adverse effect on Senior
Borrower, the Senior Loan or the value, use or operation of the Premises taken
as a whole, all as determined in the reasonable judgment of Senior Lender (such
additional Non-Monetary Cure Period, an “Extended
Non-Monetary Cure Period”). Notwithstanding anything to the contrary
contained herein, in no event shall any Extended Non-Monetary Cure Period
extend beyond the date that is five (5) years prior to the Rated Final
Distribution Date. If a Junior Lender is exercising its cure right, it shall
consult with the applicable Senior Junior Lenders and keep such Senior Junior
Lenders informed as to its progress. The Non-Monetary Cure Period and any
additional cure 

 

50

 

period
granted hereunder to a Junior Lender electing to cure a non-monetary default of
Senior Borrower (including, with respect to a non-monetary default that is not
susceptible of cure, any additional time as is reasonably necessary for a
Junior Lender to foreclose on its Equity Collateral) shall automatically terminate
upon the commencement of a Proceeding involving the Senior Borrower, unless the
Proceeding is dismissed in which case the right will be deemed reinstated from
and after such dismissal to the extent the other conditions of this Section 12(a) are satisfied.
Notwithstanding the foregoing, if a Junior Lender abandons its cure efforts
during a Non-Monetary Cure Period or Extended Non-Monetary Cure Period or fails
to satisfy any of the conditions set forth in clauses (1), (2), (3),
(4) and (5) above during a Non-Monetary Cure Period, then
(A) such Junior Lender’s cure rights with respect to the applicable
non-monetary default (but not any other non-monetary default) shall immediately
terminate and (B) notwithstanding any other Junior Lenders’ earlier
election not to cure the applicable non-monetary default, such other Junior
Lenders shall be entitled to succeed to all rights under the existing
Non-Monetary Cure Period, upon written notice to the Senior Lender, so long as
any such other Junior Lender promptly commences and thereafter diligently
pursues its rights against its Separate Collateral and the conditions set forth
in clauses (1), (2), (3), (4) and (5) above are satisfied.

 

(iii)          To the extent that any Junior Lender
or any Qualified Transferee, in accordance with the provisions and conditions
of this Agreement, acquires the ownership interests in Senior Borrower or any
Senior Junior Borrower, as applicable, pursuant to a Separate Collateral
Enforcement Action, such Junior Lender or such Qualified Transferee shall
acquire the same subject to the Senior Loan and the terms, conditions and
provisions of the Senior Loan Documents for the balance of the term thereof
(including any extension rights as provided therein), which shall not be
accelerated by Senior Lender solely due to such acquisition and shall remain in
full force and effect, provided,
that (i) such Junior Lender or Qualified Transferee shall have caused
Senior Borrower and any new Third-Party Obligor to reaffirm their respective
obligations under the Senior Loan Documents in writing (subject to such
exculpatory provisions as are set forth therein), and thereafter to perform,
all of the terms, conditions and provisions of the Senior Loan Documents on
Senior Borrower’s part to be performed and (ii) all defaults under the
Senior Loan which remain uncured as of the date of such acquisition have been
cured by such Qualified Transferee or waived by Senior Lender except for
defaults that are not susceptible of being cured by such Qualified Transferee; provided, that such defaults which are not
susceptible of being cured do not materially impair the value, use or operation
of the Premises taken as a whole, all as determined in the reasonable judgment
of Senior Lender. Notwithstanding any contrary or inconsistent provision of
this Agreement, the Senior Loan Documents or the Junior Loan Documents, no
acquisition or other fee or similar charge shall be due in connection with such
Junior Lender’s or such other Qualified Transferee’s acquisition of any
interest in Senior Borrower, any Junior Borrower or the Premises as the result
of an Equity Collateral Enforcement Action or assignment in lieu of foreclosure
or other negotiated settlement in lieu of any of the foregoing. In addition, to
the extent that a Junior Lender or any Qualified Transferee, in accordance with
the provisions and conditions of this Agreement, acquires the ownership
interests in such Senior Borrower, pursuant to an Enforcement Action or
otherwise during the sixty (60) days prior to the maturity date (or any
extended maturity date, as applicable) of the Senior Loan, such Junior Lender,
or such Qualified Transferee shall only be required to deliver a notice of
extension of the term of such Senior Loan five (5) Business Days prior to
the maturity date notwithstanding anything to the contrary in the Senior Loan
Agreement.

 

51

 

(b)  Junior Loan Default.  Prior to accelerating a Junior Loan or
commencing any Equity Collateral Enforcement Action by reason of an Event of
Default under the applicable Junior Loan Documents, the Junior Lender holding
the Junior Loan that is subject to an Event of Default shall provide written
notice of the default which would permit such Junior Lender to accelerate the
applicable Junior Loan or commence an Equity Collateral Enforcement Action to
the applicable Subordinate Junior Lenders and any Loan Pledgees entitled to
notice thereof pursuant to Section 16
of this Agreement, whether or not such Junior Lender is obligated to give notice
thereof to the Junior Borrower under such Junior Loan (each, a “Junior Loan Default Notice”). Except in
connection with such Junior Borrower’s failure to repay such Junior Loan in
full on the maturity date thereof, the Junior Lender holding the Junior Loan
that is subject to an Event of Default shall permit the applicable Subordinate
Junior Lenders an opportunity to cure such default in accordance with the
provisions of this Section 12.
In the event a Junior Borrower fails to repay a Junior Loan in full on the
maturity date thereof, each of the Subordinate Junior Lenders with respect to
such Junior Loan shall have the right to purchase such Junior Loan pursuant to
the terms, and subject to the conditions, provided in Section 14(b). Prior to or concurrently
with undertaking any curative action with respect to a Junior Loan, a Junior
Lender shall provide the other Junior Lenders with written notice thereof. Each
Junior Lender shall keep the applicable Subordinate Junior Lenders reasonably
apprised as to the status of any Equity Collateral Enforcement Action.

 

(i)            Junior
Loan Monetary Default.  If the
default identified in the Junior Loan Default Notice is a monetary default
relating to (1) any scheduled payment of principal or interest or
(2) the payment of any other liquidated sum of money, the Subordinate
Junior Lenders shall have until ten (10) Business Days after the later of
(a) the receipt (or deemed receipt) by the applicable Subordinate Junior
Lenders of the Junior Loan Default or (b) expiration of the applicable
Senior Junior Borrower’s Notice to cure such monetary default (each such cure
period, a “Junior Loan Monetary Cure Period”);
provided, however, that in the event a Subordinate
Junior Lender elects to cure such monetary default, such Subordinate Junior
Lender hereby agrees (x) to indemnify, defend and hold harmless the
applicable Senior Junior Lender for all cost, expenses, losses, liabilities,
obligations, damages, penalties, and disbursements arising under any servicing
agreement applicable to the Senior Junior Loan to the extent imposed on,
incurred by or asserted against Senior Junior Lender due to or arising from
such Junior Loan Monetary Cure Period, (y) without duplication, to
reimburse the applicable Senior Junior Lender for any interest charged by the
applicable Senior Junior Lender or the servicer on any advances for monthly
payments of principal and/or interest on the applicable Senior Junior Loan
and/or on any Protective Advances during the Junior Loan Monetary Cure Period,
and (z) if the monetary default is not cured within the Junior Loan
Monetary Cure Period but is thereafter cured by a Subordinate Junior Lender, to
pay the applicable Senior Junior Lender the excess of interest accruing at the
Default Rate (without duplication) over interest accruing at the Interest Rate
under the applicable Senior Junior Loan for the number of days beyond the
expiration of such Junior Loan Monetary Cure Period that the default to which
such Junior Loan Monetary Cure Period related continued uncured, less any
amounts paid by such Subordinate Junior Lender under (y) above. A
Subordinate Junior Lender shall not be required, in order to effect a cure
hereunder during the Junior Loan Monetary Cure Period, to pay any late charges
or (other than the cure by a Subordinate Junior Lender of a default in the
payment of the applicable Senior Junior Loan in full on the maturity date
thereof) any interest at the Default Rate under the applicable Senior Junior
Loan Documents (irrespective of any cure of such default by a Subordinate
Junior Lender pursuant to the provisions of this Agreement), and no late
charges or interest at the Default Rate shall accrue against such Subordinate
Junior Lender for such period. There shall be no right to cure as hereinabove
set forth with respect to monthly scheduled interest and principal payments for
a period of more than six (6) consecutive months (regardless of which
Subordinate Junior Lender has cured such monetary default) unless such
Subordinate Junior Lender seeking to cure beyond such six 

 

52

 

(6) month
period has commenced and is continuing to diligently pursue its rights against
such Subordinate Junior Lender’s Equity Collateral, in which case such
Subordinate Junior Lender shall be entitled to continue curing such monetary
defaults involving monthly scheduled interest and principal payments until the
occurrence of any voluntary or involuntary Proceeding involving the applicable
Junior Borrower (such additional monetary cure period, a “Junior Loan Extended Monetary Cure Period”).
In the event more than one Subordinate Junior Lender cures any monetary default
in accordance with the terms of this Section, the applicable Senior Junior
Lender hereby agrees (x) to accept the cure from the junior most
Subordinate Junior Lender and (y) to return to any Senior Subordinate
Junior Lender(s) within three (3) Business Days of accepting such
cure from the junior most Subordinate Junior Lender any funds tendered by the
Senior Subordinate Junior Lender(s). The cure period for a Subordinate Junior
Lender with respect to a monetary default shall run concurrently with the cure
period for the other Subordinate Junior Lenders with respect to such monetary
default and in no event sequentially. Notwithstanding the foregoing, if a
Subordinate Junior Lender elects to pursue such cure of defaults involving
monthly scheduled debt service payments as set forth above and thereafter
either fails to make the required cure payments or fails to diligently pursue
its rights against such Subordinate Junior Lender’s Equity Collateral, then
notwithstanding the earlier election of the remaining Subordinate Junior
Lenders not to cure the defaults involving monthly scheduled debt service
payments, such other Subordinate Junior Lenders shall be entitled to succeed to
all such cure rights, upon written notice to the Senior Junior Lender that is
the holder of the Senior Junior Loan that is subject to the Event of Default,
so long as such remaining Subordinate Junior Lender promptly commences and
thereafter diligently pursues its rights against its Equity Collateral and
otherwise satisfies the provisions of this Section 12(b)(i).
If the default referenced in a Junior Loan Default Notice has been cured such
that there is no longer an Event of Default under the applicable Junior Loan
Documents, the applicable Subordinate Junior Lenders shall have the same Junior
Loan Monetary Cure Period with respect to any future Junior Loan Default
Notice. In the event that the Senior Loan and one or more Senior Junior Loans
are concurrently in default, a Subordinate Junior Lender shall have no right to
exercise its cure rights with respect to the Senior Loan under Section 12(a)(i) or (ii) or the Senior Junior Loan(s) under
this Section 12(b)(i) or
Section 12(b)(ii) below
unless such Subordinate Junior Lender is simultaneously exercising its cure
rights with respect to the Senior Loan under Sections 12(a)(i) and/or
(ii) (to the extent that
such Subordinate Junior Lender is permitted to exercise such cure rights under Sections 12(a)(i) and/or (ii)) and with respect to each such Senior
Junior Loan(s) under this Section 12(b)(i) above
or Section 12(b)(ii) below
(to the extent that such Subordinate Junior Lender is permitted to exercise
such cure rights under Sections 12(b)(i) and/or
(ii)).

 

(ii)           Junior
Loan Non-Monetary Default.  If
the default identified in the Junior Loan Default Notice is of a non-monetary
nature, (aa) the applicable Subordinate Junior Lender having the lowest
priority shall have fifteen (15) Business Days from the later of
(A) the receipt by it of a Junior Loan Default Notice and (B) the
expiration of the applicable Senior Junior Borrower’s cure period for such
non-monetary default provided in the applicable Senior Junior Loan Documents,
to cure such non-monetary default (such period, the “Initial Junior Loan Non-Monetary Cure Period”); and (bb) if
the applicable Subordinate Junior Lender having the lowest priority elects not
to cure such non-monetary default prior to the expiration of the Initial Junior
Loan Non-Monetary Cure Period, the other remaining Subordinate Junior Lenders
shall have the right to cure such non-monetary default within five
(5) additional Business Days after such Subordinate Junior Lender receives
notice that the next most junior Subordinate Junior Lender failed to cure such
non-monetary default (the Initial Junior Loan Non-Monetary Cure Period or such
additional cure period, as applicable, the “Junior
Loan Non-Monetary Cure Period”); provided,
that (1) except as provided in the immediately following clause (2),
in no event shall the Junior Loan Non-Monetary Cure Period extend beyond the
date that is the later of (A) five (5) Business Days after the 

 

53

 

Subordinate
Junior Lender with the highest priority with respect to the Senior Junior Loan
that is subject to a default has received notice that the Subordinate Junior
Lender with the next lower priority has failed to cure such default and
(B) twenty-five (25) Business Days after the expiration of Senior
Junior Borrower’s cure period, if any, for such non-monetary default provided
in the Senior Junior Loan Documents, to cure such non-monetary default; and
(2) if such non-monetary default is susceptible of cure but cannot
reasonably be cured within the applicable Junior Loan Non-Monetary Cure Period
and curative action was promptly commenced and is being diligently pursued by a
Subordinate Junior Lender (or with respect to a non-monetary default that is
not susceptible of cure, if a Subordinate Junior Lender shall be diligently
pursuing the foreclosure of its Equity Collateral and such non-monetary default
does not materially impair the value, use or operation of the applicable Senior
Junior Lender’s Equity Collateral as reasonably determined by such Senior
Junior Lender), such Subordinate Junior Lender shall be given an additional
period of time as is reasonably necessary for such Subordinate Junior Lender in
the exercise of due diligence to cure such non-monetary default (or, in the
case of a non-monetary default as described above that is not susceptible of
cure, then such Subordinate Junior Lender shall be given an additional period
of time as is reasonably necessary for such Subordinate Junior Lender in the
exercise of due diligence to complete the foreclosure of its Equity Collateral)
for so long as (A) such Subordinate Junior Lender makes or causes to be
made timely payment of the applicable Senior Junior Borrower’s regularly
scheduled monthly principal and/or interest payments under the applicable
Senior Junior Loan and any other amounts due under the applicable Senior Junior
Loan Documents, (B) such additional period of time does not exceed
forty-five (45) days, unless such non-monetary default is of a nature that
cannot be cured within such forty-five (45) days, in which case, such
Subordinate Junior Lender shall have such additional time as is reasonably
necessary to cure such non-monetary default, provided that such Subordinate
Junior Lender is continuously and diligently pursuing a cure of such
non-monetary default (or, with respect to a non-monetary default that is not
susceptible of cure, such Subordinate Junior Lender shall have such additional
time as is reasonably necessary to gain ownership of its Equity Collateral,
provided that such Subordinate Junior Lender is continuously and diligently
pursuing the ownership of its Equity Collateral and such non-monetary default
does not materially impair the value, use or operation of the applicable Senior
Junior Lender’s Equity Collateral as reasonably determined by such Senior
Junior Lender), (C) such default is not caused by a Proceeding of the
applicable Senior Junior Borrower, and (D) during such Junior Loan
Non-Monetary Cure Period (and any additional period of time provided for
above), there is no material impairment to the value, use or operation of the
applicable Senior Junior Lender’s Equity Collateral as reasonably determined by
such Senior Junior Lender (such additional Junior Loan Non-Monetary Cure
Period, an “Junior Loan Extended Non-Monetary
Cure Period”). If a Subordinate Junior Lender has commenced
exercising any such cure right during a Junior Loan Non-Monetary Cure Period
and elects not to proceed with such cure, such Junior Lender shall promptly
notify the remaining Subordinate Junior Lenders, and each remaining Subordinate
Junior Lender shall be deemed in compliance with the terms hereof if it
commences curing such event within five (5) Business Days following
receipt of written notice of such election not to proceed with such cure by the
Junior Lender that precedes it in priority of cure right pursuant to this Section 12(b)(ii) and otherwise
complies with the provision of the immediately preceding sentence. The Junior
Loan Non-Monetary Cure Period and any additional cure period granted hereunder
to a Subordinate Junior Lender electing to cure the non-monetary default
(including, with respect to a non-monetary default that is not susceptible of
cure, any additional time as is reasonably necessary for a Subordinate Junior
Lender to foreclose on its Equity Collateral) shall automatically terminate
upon the bankruptcy (or similar insolvency) of Senior Borrower or any
applicable Senior Junior Borrower. In the event that the Senior Loan and one or
more Senior Junior Loans are concurrently in default, a Subordinate Junior
Lender shall have no right to exercise its cure rights with respect to the
Senior Loan under Section 12(a) or
the Senior Junior Loan(s) under Section 12(b)(i) above
or this Section 12(b)(ii)

 

54

 

unless
such Subordinate Junior Lender is simultaneously exercising its cure rights
with respect to the Senior Loan under Sections 12(a)(i) and/or
(ii) (to the extent that
such Subordinate Junior Lender is permitted to exercise such cure rights under Sections 12(a)(i) and/or (ii)) and with respect to each such Senior
Junior Loan(s) under Section 12(b)(i) above
or this Section 12(b)(ii) (to
the extent that such Subordinate Junior Lender is permitted to exercise such
cure rights under Sections 12(b)(i) and/or
(ii)). The Junior Loan
Non-Monetary Cure Period and any additional cure period granted hereunder to
any Subordinate Junior Lender electing to cure a non-monetary default of any
applicable Senior Junior Borrower (including, with respect to a non-monetary
default that is not susceptible of cure, any additional time as is reasonably
necessary for a Subordinate Junior Lender to foreclose on its Equity
Collateral) shall automatically terminate upon the bankruptcy (or similar
insolvency) of such applicable Senior Junior Borrower.

 

(c)  Cash Management.  So long as the South Carolina Management
Agreements are in place and so long as no Event of Default shall have occurred
and be continuing under the Senior Loan Documents, subject to the cure rights
of the Junior Lenders hereunder, all funds held and applied pursuant to the
Senior Loan Cash Management Agreement and Senior Loan Agreement, shall continue
to be applied in the manner required thereunder prior to the occurrence of an
Event of Default under the Senior Loan. So long as no Event of Default shall
have occurred and be continuing under the First Mezzanine Loan Documents,
subject to the cure rights of the Junior Lenders hereunder, all funds held and
applied pursuant to the First Mezzanine Cash Management Agreement and First
Mezzanine Loan Agreement, shall continue to be applied pursuant thereto in the
manner required thereunder prior to the occurrence of an Event of Default under
the First Mezzanine Loan Documents. So long as no Event of Default shall have
occurred and be continuing under the Second Mezzanine Loan Documents, subject
to the cure rights of the Junior Lenders hereunder, all funds held and applied
pursuant to the Second Mezzanine Cash Management Agreement and Second Mezzanine
Loan Agreement, shall continue to be applied in the manner required thereunder
prior to the occurrence of an Event of Default under the Second Mezzanine Loan
Documents. So long as no Event of Default shall have occurred and be continuing
under the Third Mezzanine Loan Documents, subject to the cure rights of the
Junior Lenders hereunder, all funds held and applied pursuant to the Third
Mezzanine Cash Management Agreement and Third Mezzanine Loan Agreement, shall
continue to be applied in the manner required thereunder prior to the
occurrence of an Event of Default under the Third Mezzanine Loan Documents. So
long as no Event of Default shall have occurred and be continuing under the
Fourth Mezzanine Loan Documents, subject to the cure rights of the Junior
Lenders hereunder, all funds held and applied pursuant to the Fourth Mezzanine
Cash Management Agreement and Fourth Mezzanine Loan Agreement, shall continue
to be applied in the manner required thereunder prior to the occurrence of an
Event of Default under the Fourth Mezzanine Loan Documents. So long as no Event
of Default shall have occurred and be continuing under the Fifth Mezzanine Loan
Documents, subject to the cure rights of the Junior Lenders hereunder, all
funds held and applied pursuant to the Fifth Mezzanine Cash Management
Agreement and Fifth Mezzanine Loan Agreement, shall continue to be applied in
the manner required thereunder prior to the occurrence of an Event of Default
under the Fifth Mezzanine Loan Documents. So long as no Event of Default shall
have occurred and be continuing under the Sixth Mezzanine Loan Documents,
subject to the cure rights of the Junior Lenders hereunder, all funds held and
applied pursuant to the Sixth Mezzanine Cash Management Agreement and Sixth
Mezzanine Loan Agreement, shall continue to be applied in the manner required
thereunder prior to the occurrence of an Event of Default under the Sixth
Mezzanine Loan Documents.

 

Section 13.  Replacement
of Manager.

 

Senior
Lender and each Junior Lender hereby consents to each Junior Lenders’ right,
under the circumstances set forth in the applicable Junior Loan Documents, to
cause the termination of any manager of the Premises, and the exercise of such
right (and any manager replacement right exercised 

 

55

 

pursuant to the terms of this Section 13 below) shall not (in and
of itself) permit the Senior Lender and the other Junior Lenders to declare an
Event of Default as defined in the Senior Loan Documents or the applicable
Junior Loan Documents or take any Enforcement Action or Equity Collateral
Enforcement Action. In the event Senior Lender and one or more Junior Lenders
shall have the right to so terminate any manager of the Premises, and Senior
Lender shall fail to exercise such rights within ten (10) Business days,
the most junior Junior Lender may exercise such rights without the consent of
the Senior Lender; provided such
exercise by the most Junior Lender may be superseded by any subsequent exercise
of such rights by Senior Lender in accordance to the Senior Loan Documents. If
Senor Lender does not exercise its superior termination rights, the most junior
Junior Lender, having terminated the property manager of the Premises pursuant
to the most junior Junior Loan Documents, shall have the right to select, or
cause the selection, of a replacement property manager, asset manager or
leasing agent, as applicable, for the Premises, which replacement manager,
asset manager and/or leasing agent for the Premises, shall be subject to Senior
Lender’s reasonable approval and the applicable terms and provisions of the
Senior Loan Documents, and, if any Certificates are then outstanding, be
subject to a Rating Agency Confirmation, and shall be a Qualified Manager. Notwithstanding
anything in this Section 13
to the contrary, if an Event of Default under the Senior Loan then is
continuing, Senior Lender shall have the sole right to select any replacement
manager, asset manager and/or leasing agent, as applicable, which is a
Qualified Manager and, if any Certificates are then outstanding, is subject to
a Rating Agency Confirmation, whether or not a new manager or agent was
retained by the most junior Junior Lender; provided,
Senior Lender agrees to consult with the Junior Lenders prior to making any
such election; and provided, further, that without the consent of each
of the Junior Lenders which is not an Affiliate of the Senior Borrower, the
Senior Lender shall not engage a replacement manager that is an Affiliate of the
Senior Borrower.

 

Section 14.  Right to
Purchase Senior Loan and the Senior Junior Loans.  (a) At any time after (i) the
occurrence and during the continuance of a monetary Event of Default under the
Senior Loan or non-monetary Event of Default under the Senior Loan which is
subject to an Enforcement Action or (ii) if the Senior Loan is a “specially
serviced mortgage loan” under the applicable trust and servicing agreement or
pooling and servicing agreement related thereto as a result of a monetary Event
of Default or material non-monetary Event of Default occurring under the Senior
Loan (each of the foregoing, a “Purchase
Option Event”), upon ten (10) Business Days’ prior written
notice to Senior Lender (the “Purchase Notice”),
a Junior Lender (and, if permitted by the applicable participation agreement, a
Junior Lenders’ participant) shall have the right to purchase, in whole, but
not in part, the Senior Loan for a price equal to the sum of (without
duplication) the outstanding principal balance of the Senior Loan, together
with all accrued interest and other amounts due thereon (excluding prepayment
fees or premiums that would be due if Senior Borrower were prepaying the Senior
Loan at the time of such purchase in violation of the prohibition against voluntary
prepayment, exit fees, yield maintenance premiums, spread maintenance premiums,
default interest and late charges, but including, without limitation,
post-petition interest, any unreimbursed Protective Advances made by Senior
Lender or any servicer and any interest charged by Senior Lender or any
servicer on any advances for monthly payments of principal and/or interest on
the Senior Loan and/or on any Protective Advances), and including all costs and
expenses (including reasonable legal fees and expenses) actually incurred by
Senior Lender in enforcing the terms of the Senior Loan Documents, and any fees
and expenses payable or reimbursable to any servicer, trustee or fiscal agent; provided that any such fees and expenses
are not duplicative of any other fees and expenses otherwise payable by a
Junior Lender to Senior Lender under this Section 14,
including, without limitation, special servicing to any special servicer under
the applicable pooling and servicing agreement, interest on advances made by any
of them (but excluding any workout or liquidation fees if the Senior Loan is
purchased within ninety (90) days of the Purchase Option Event) whether or
not any such entity may be deemed to be Senior Lender (collectively, the “Senior Loan Purchase Price”). In the event
that any Junior Lender elects to purchase the Senior Loan pursuant to this Section 14(a), the Subordinate Junior
Lender with the lowest 

 

56

 

priority with respect to the other Junior
Lenders that have elected to purchase the Senior Loan shall have the exclusive
right to so purchase the Senior Loan, provided
that such Subordinate Junior Lender shall also be required to concurrently
purchase each of the applicable Senior Junior Loans from the Senior Junior
Lenders holding such applicable Senior Junior Loans (regardless of whether such
Senior Junior Lenders were among the Junior Lenders which had elected to
purchase the Senior Loan). Such purchase of each of the Senior Junior Loans
shall be for a price equal to the sum of (without duplication) the outstanding
principal balance of the Senior Junior Loan, together with all accrued interest
and other amounts due thereon (including, without limitation, advances made by
Senior Junior Lender or any servicer and post-petition interest), any
unreimbursed Protective Advances made by such Senior Junior Lender or any
servicer), including all costs and expenses (including reasonable legal fees
and expenses) actually incurred by such Senior Junior Lender in enforcing the
terms of the applicable Senior Junior Loan Documents, any fees and expenses
payable or reimbursable to any servicer (provided
that any such fees and expenses are not duplicative of any default interest,
late charges or other fees and expenses otherwise payable by a Subordinate
Junior Lender to such Senior Junior Lender under this Section 14); excluding any workout or
liquidation fees, prepayment fees or premiums that would be due if the
applicable Senior Junior Borrower were prepaying the applicable Senior Junior
Loan at the time of such purchase in violation of the prohibition against
voluntary prepayment, exit fees, yield maintenance premiums, spread maintenance
premiums, late charges and default interest (such price as to each such Senior
Junior Loan, the “Senior Junior Loan Purchase
Price”). A Subordinate Junior Lender may not close the purchase of
the Senior Loan without concurrently closing the purchase of the applicable
Senior Junior Loans in accordance with the terms of this paragraph. Prior to
electing to purchase the Senior Loan and/or any Senior Junior Loan, a
Subordinate Junior Lender shall have the right to obtain from Senior Lender and
each Senior Junior Lender a good faith estimate of the Senior Loan Purchase
Price and Senior Junior Loan Purchase Price, respectively. If any Subordinate
Junior Lender which has elected to purchase the Senior Loan fails to complete
such purchase within ten (10) Business Days after delivery of a Purchase
Notice or fails to concurrently purchase the applicable Senior Junior Loans as
required hereunder, then such Purchase Notice shall be deemed invalid, such
defaulting Subordinate Junior Lender shall cease to have any right to purchase
the Senior Loan (and any applicable Senior Junior Loan) in connection with the
applicable Purchase Option Event and the remaining Junior Lenders shall
thereafter be entitled to exercise their purchase rights under, and in
accordance with, this Section 14(a).
Senior Lender shall close the sale of the Senior Loan to the applicable Junior
Lender on the date set forth in the Senior Purchase Notice subject to the terms
and conditions of this Agreement. Each Junior Lender agrees that the sale of
the Senior Loan shall, if the Senior Loan is included in a Securitization at
such time, comply with the requirements of the pooling and servicing agreement
pursuant to which the Certificates were issued and that all attorney’s fees
related to the preparation and delivery of the assignment of the Senior Loan
shall be paid by the applicable Junior Lender. Concurrently with payment to
Senior Lender of the Senior Loan Purchase Price, Senior Lender shall deliver or
cause to be delivered to the Junior Lender exercising the purchase right
hereunder all Senior Loan Documents held by or on behalf of Senior Lender and
will execute in favor of the Junior Lender or its designee exercising the
purchase right hereunder, assignment documentation, in form and substance
reasonably acceptable to Senior Lender and such Junior Lender, at the sole cost
and expense of such Junior Lender to assign the Senior Loan and its rights
under the Senior Loan Documents (without recourse, representations or
warranties, except for representations as to the outstanding balance of the
Senior Loan, the power and authority of the Senior Lender to transfer the
Senior Loan and as to Senior Lender’s ownership and not having previously
assigned, transferred, participated or encumbered its rights in the Senior Loan
unless such participation or encumbrance will be released prior to the transfer).
Concurrently with payment to each of Senior Junior Lenders of the applicable
Senior Junior Loan Purchase Price for the Senior Junior Loan held by each such
Senior Junior Lender, each applicable Senior Junior Lender shall deliver or
cause to be delivered to the Subordinate Junior Lender exercising the purchase
right hereunder all Senior Junior Loan Documents held by or on behalf of such
Senior Junior Lender and will execute in 

 

57

 

favor of such Subordinate Junior Lender or
its designee assignment documentation, in form and substance reasonably
acceptable to such Subordinate Junior Lender, at the sole cost and expense of
such Subordinate Junior Lender, to assign such Senior Junior Lender’s Senior
Junior Loan and its rights under the related Senior Junior Loan Documents
(without recourse, representations or warranties, except for representations as
to the outstanding balance of such Senior Junior Loan, the power and authority
of the Senior Junior Lender to transfer the Senior Junior Loan and as to such
Senior Junior Lender’s ownership and not having previously assigned,
transferred, participated or encumbered its rights in such Senior Junior Loan
unless such participation or encumbrance will be released prior to the
transfer). Following the occurrence of a Purchase Option Event, each Junior
Lender shall keep the other Junior Lenders informed as to such Junior Lender’s
intention to exercise any of its respective rights in connection with the
Purchase Option Event.

 

(b)           The right of each Junior Lender to
purchase the Senior Loan shall automatically terminate (i) ten
(10) Business Days after receipt of notice that a more senior Senior
Junior Lender has elected to exercise the right to purchase the Senior Loan (unless
the more junior Junior Lender shall have given written notice to such Senior
Junior Lender to purchase the Senior Loan prior to the expiration of such ten
(10) Business Day period), (ii) upon a transfer of the Premises by
foreclosure sale, sale by power of sale or delivery of a deed in lieu of
foreclosure, or (iii) with respect to a specific Purchase Option Event, if
such Purchase Option Event ever ceases to exist; provided, however,
that in no event shall any Junior Lender have less than thirty (30) days
to deliver a Purchase Notice following notice by Senior Lender to such Junior
Lender of the occurrence of the related Purchase Option Event, except pursuant
to the terms of clause (A)(iii) of
this sentence. Notwithstanding the foregoing sentence, if Borrower offers to
deliver or actually delivers to Senior Lender a deed in lieu of foreclosure to
the Premises (each, a “Deed in Lieu”),
Senior Lender shall provide Junior Lenders not less than ten (10) Business
Days written notice prior to accepting a Deed in Lieu to the Premises, and if
any Junior Lender shall deliver a Purchase Notice to Senior Lender prior to the
expiration of such ten (10) Business Day period, Senior Lender shall not
accept the Deed in Lieu to the Premises, provided that the applicable Junior
Lender pays the Senior Loan Purchase Price to Senior Lender and acquires the
Senior Loan (and the Senior Junior Loans at the applicable Senior Junior Loan
Purchase Price) within such ten (10) Business Day period from the delivery
of such Purchase Notice, in which case all costs and expenses (including all
transfer taxes) in connection therewith shall be paid by the applicable Junior
Lender.

 

(c)           If a Junior Loan has been
accelerated, any Equity Collateral Enforcement Action has been commenced under
the Junior Loan Documents for a Junior Loan, a Proceeding has been commenced
against a Junior Borrower under such Junior Loan or a Subordinate Junior Lender
has cured one or more defaults on the part of any Junior Borrower under the
Senior Junior Loan Documents pursuant to Section 12
hereof and, but for such cure, the Senior Junior Loan would be considered a “specially
serviced mortgage loan” under the applicable pooling and servicing agreement if
it were the Senior Loan (a “Junior Loan
Purchase Option Event”), the Junior Lender holding such Junior Loan
(such Junior Loan, the “Optioned Junior Loan”
and such Junior Lender, the “Optioned Junior
Lender”) shall provide prompt written notice of the same to the
applicable Subordinate Junior Lenders, and upon ten (10) Business Days’
prior written notice (the “Junior Purchase
Notice”) to the Senior Junior Lender holding the Optioned Junior
Loan that is subject to the applicable Junior Loan Purchase Option Event, the
applicable Subordinate Junior Lenders (and, if permitted by the applicable
participation agreement, Optioned Junior Lenders’ participant) shall have the
right to purchase, in whole but not in part, the applicable Optioned Junior
Loan for the Senior Junior Loan Purchase Price. Notwithstanding the foregoing
but subject to the terms of the next to last sentence of this Section 14(c), the failure of a
Senior Junior Lender to provide notice to any applicable Subordinate Junior
Lender of the occurrence of a Junior Loan Purchase Option Event shall have no
adverse effect on such Junior Lender. In the event that more than one
Subordinate Junior Lender elects to purchase an Optioned Junior Loan pursuant
to this Section 14(c), the
Subordinate Junior Lender with the lowest priority with 

 

58

 

respect to the other Subordinate Junior
Lenders that have elected to purchase such Optioned Junior Loan shall have the
exclusive right to so purchase such Optioned Junior Loan, provided that such
Subordinate Junior Lender shall also be required to concurrently purchase each
of the other Subordinate Junior Loans that constitute, as to such purchasing
Subordinate Junior Lender, Senior Junior Loans from the Junior Lenders holding
such other Subordinate Junior Loans that so constitute Senior Junior Loans that
are also Subordinate Junior Loans in respect of the Optioned Junior Loan (such
other Subordinate Junior Loans, the “Additional
Covered Junior Loans”) in each case for a price equal to the
applicable Senior Junior Loan Purchase Price. If any Subordinate Junior Lender
which has elected to purchase the Optioned Junior Loan that is subject to the
applicable Junior Loan Purchase Option Event fails to complete such purchase
within ten (10) Business Days of delivery of a Junior Purchase Notice or fails
to concurrently purchase the applicable Additional Covered Junior Loans as
required hereunder, then such Junior Purchase Notice shall be deemed invalid,
such defaulting Subordinate Junior Lender shall cease to have any right to
purchase the Optioned Junior Loan in connection with the applicable Junior Loan
Purchase Option Event and the other Subordinate Junior Lenders shall thereafter
be entitled to exercise their purchase rights under, and in accordance with,
this Section 14(c).
Concurrently with payment to the applicable Senior Junior Lenders of the
applicable Senior Junior Loan Purchase Price for the Optioned Junior Loan or
Additional Covered Junior Loan, as the case may be, held by such Senior Junior
Lender, each applicable Senior Junior Lender shall deliver or cause to be
delivered to the Subordinate Junior Lender exercising the purchase right
hereunder all Senior Junior Loan Documents held by or on behalf of such Senior
Junior Lender and will execute in favor of such Subordinate Junior Lender or its
designee assignment documentation, in form and substance reasonably acceptable
to such Subordinate Junior Lender, at the sole cost and expense of such
Subordinate Junior Lender, to assign such Senior Junior Lender’s Optioned
Junior Loan, or Additional Covered Junior Loan, as the case may be, and its
rights under the related Senior Junior Loan Documents (without recourse,
representations or warranties, except for representations as to the outstanding
balance of such Optioned Junior Loan or Additional Covered Junior Loan, as the
case may be, and as to such Senior Junior Lender’s ownership and not having
previously assigned, transferred, participated or encumbered its rights in such
Optioned Junior Loan or Additional Covered Junior Loan, as the case may be, unless
such participation or encumbrance will be released prior to the transfer). The
right of any Subordinate Junior Lender to purchase the Optioned Junior Loan
shall automatically terminate (x) upon a transfer or sale of the Equity
Collateral covered by the Senior Junior Loan Documents that secure the Optioned
Junior Loan, pursuant to any Equity Collateral Enforcement Action where the
transferee is not Senior Borrower (or any Affiliate thereof), or (y) with
respect to a specific Junior Loan Purchase Option Event, if such Junior Loan
Purchase Option Event ceases to exist (including, if the applicable Senior
Junior Lender terminated its Equity Collateral Enforcement Action); provided, however,
that in no event shall any Subordinate Junior Lender have less than thirty
(30) days, following notice by the applicable Senior Junior Lender to such
Subordinate Junior Lender of the occurrence of a Junior Loan Purchase Option
Event, to elect to purchase the Optioned Junior Loan, except if such period for
such election to purchase is terminated pursuant to the terms of foregoing
clause (x) or (y). Notwithstanding the foregoing sentence, if title
is transferred to any Subordinate Junior Lender less than ten (10) days
after the acceleration of the applicable Senior Junior Loan, the applicable
Subordinate Junior Lenders shall have a ten (10) day period to deliver the
applicable Senior Junior Loan Purchase Notice to the applicable Senior Junior
Lender with the obligation to purchase the applicable Equity Collateral within
ten (10) days of the delivery of such Senior Junior Loan Purchase Notice
at the applicable Senior Junior Loan Purchase Price, in which case all costs
and expenses (including all transfer taxes) in connection therewith shall be
paid by the applicable Subordinate Junior Lender.

 

(d)           Senior Lender and each Junior Lender
covenants not to, and not to permit any Affiliate to, enter any agreement with
Borrower, any Junior Borrower or any Affiliate thereof to purchase the Senior
Loan or any Junior Loan pursuant to this Section or in connection with any
refinancing of the

 

59

 

Senior Loan or any Junior
Loan in any manner designed to avoid or circumvent the provisions of the Senior
Loan Documents or any of the Junior Loan Documents which require the payment of
any liquidated damage amount, acceleration prepayment premium, a prepayment
fee, premiums or yield maintenance charge in connection with a prepayment of
the Senior Loan or a Junior Loan. Notwithstanding anything to the contrary
contained herein, the ten (10) Business Day period following delivery of
the Purchase Notice during which a purchasing Junior Lender is required to
consummate such purchase, may be extended for an additional ten
(10) Business Days upon payment to the Senior Lender of a nonrefundable
deposit in an amount equal to ten percent (10%) of the Senior Loan Purchase
Price.

 

Section 15.  Additional
Understandings.  For as long
any Junior Loan remains outstanding:

 

(a)  Notices of Transfer, etc.  In the event of a request by Senior Borrower
or any Junior Borrower for Senior Lender’s or any Junior Lender’s consent to
either (i) the sale or Transfer of all or any material portion of the
Premises or any interest in Senior Borrower or any Junior Borrower, or
(ii) the granting of a further mortgage, deed of trust or similar
encumbrance against the Premises or any of the Equity Collateral or any
incurrence of additional indebtedness, such Person from whom such consent has
been requested shall, as long as no Event of Default has occurred under the
Senior Loan or the Junior Loan held by such Person, if such Person has the right
to consent under the Senior Loan Documents or Junior Loan Documents held by
such Person or such consent is otherwise requested from such Person, obtain the
prior written consent of the Junior Lenders or the applicable Subordinate
Junior Lenders, as the case may be, prior to such Person granting its consent
or agreement thereto (for the purposes of this Section 15(a),
each Junior Lender is to be reasonable to the extent Senior Lender must be
reasonable, but nothing contained above is intended to reduce or limit the
rights of each Junior Lender under its respective Junior Loan Documents).
Nothing herein shall require any Junior Lender to consent to, or waive its
rights with respect to, any Transfer of the Premises or any interest therein
(including, without limitation, the Separate Collateral).

 

(b)  Annual Budget.  The most Junior Lender shall have the right
to receive and reasonably approve the Quarterly CapEx Budget in accordance with
the terms of its Junior Loan Documents during a Trigger Period.

 

(c)  Reserves and Escrows.  If (i) Senior Lender waives any reserves
or escrow accounts required under the Senior Loan Documents which reserves or
escrow accounts are also required under the most Senior Junior Loan Documents,
then the most Senior Junior Lender may require that its Junior Borrower
(x) deposit such amounts that would have been deposited into any reserves
or escrow accounts under the Senior Loan to be transferred to and deposited
with such Senior Junior Lender and (y) enter into a cash management
agreement with such Senior Junior Lender substantially similar to the
arrangement entered into by Borrower with Senior Lender at the closing of the
Senior Loan and (ii) if any Senior Junior Lender waives any reserves or
escrow accounts required under its applicable Senior Junior Loan Documents
which reserves or escrow accounts are also required under the most senior
Subordinate Junior Loan Documents, then the most senior Subordinate Junior
Lender may require that its Junior Borrower (x) deposit such amounts that
would have been deposited into any reserves or escrow accounts under the Senior
Loan or the applicable Senior Junior Loan to be transferred to and deposited
with such Subordinate Junior Lender and (y) enter into a cash management
agreement with such Subordinate Junior Lender substantially similar to the
arrangement entered into by Borrower with the Senior Lender or by the Senior
Junior Borrower with such Senior Junior Lender.

 

(d)  Consent Rights of Junior Lenders.  If any of the Junior Loan Documents contain
any provision or requirement that a Junior Lender’s consent or approval be
obtained for any act or determination by Borrower or its respective Junior
Borrower in connection with the leasing of the Premises or alterations to the
Premises, to the extent that such consent or approval is also required by 

 

60

 

Senior Lender under the
Senior Loan Documents, each Junior Lender hereby agrees that it shall first
advise Senior Lender whether such Junior Lender objects to the requested
consent or approval within five (5) Business Days after its receipt of
(i) a written request for a consent or approval from the applicable Junior
Borrower and (ii) delivery of all required documents and information
necessary to adequately and completely evaluate such request. Senior Lender
shall consult with each Junior Lender with respect to any such consent or
approval right of such Junior Lender. Each Junior Lender having such consent
rights shall not unreasonably withhold its consent to such lease or alteration
if Senior Lender (A) is deemed to have approved such lease or alteration
under the Senior Loan Documents or (B) reasonably approves such lease or
alteration provided, with respect to a lease, the lease is on market terms and,
with respect to an alteration, the alteration is necessary to maintain the
Premises in good order and repair as required by the Senior Loan Documents.

 

(e)  Permitted Refinancing.  Each Junior Lender will not modify the
provisions of its respective Junior Loan Agreement with respect to permitted
refinancing of the Senior Loan without Senior Lender’s prior written consent
(which consent shall not be unreasonably withheld or delayed) or with respect
to permitted refinancing of any Senior Junior Loan without the applicable
Senior Junior Lender’s prior written consent, not to be unreasonably withheld
or delayed.

 

(f)  Marshalling of Assets.  Each Junior Lender hereby waives any
equitable right it may have to require that Senior Lender marshal any assets of
Senior Borrower in favor of such Junior Lender, to require the separate sales
of any portion of the Premises or to require that Senior Lender exhaust its
remedies against any portion of the Premises. Each Junior Lender agrees that,
except with respect to the enforcement of its remedies under its applicable
Junior Loan Documents permitted hereunder (including the foreclosure and
acquisition of its applicable Equity Collateral through an Enforcement Action),
prior to the satisfaction of all Senior Loan Liabilities it shall not acquire,
by subrogation or otherwise, any lien, estate, right or other interest in any
portion of the Premises or any other collateral now securing the Senior Loan or
the proceeds therefrom that is or may be prior to, or of equal priority to, any
of the Senior Loan Documents or the liens, rights, estates and interests
created thereby.

 

(g)  Requests for Disbursements.  Senior Lender hereby agrees to promptly
(x) notify each Junior Lender of any requests by Senior Borrower for
disbursements of funds from the Reserve Funds (as defined in the Senior Loan
Agreement) or a release of Net Proceeds (as defined in the Senior Loan
Documents) and (y) provide each Junior Lender with any documentation
delivered by Senior Borrower to Senior Lender with respect to any such request
by Senior Borrower for a disbursement of funds from the Reserve Funds or
release of Net Proceeds (provided that in no event shall Senior Lender have any
liability for a failure by Senior Lender to provide such notice or documentation
to any Junior Lender, and no such failure shall constitute a default
hereunder).

 

(h)  Cash Management.  (i) Senior Lender hereby agrees to
deliver to each Junior Lender a copy of any notice sent or received by Senior
Lender with respect to the Senior Loan Cash Management Agreement, including,
without limitation, each disbursement instruction delivered under such Senior
Loan Cash Management Agreement. Such copies shall be delivered to each Junior
Lender concurrently with the delivery of such notices to the Agent under the
Senior Loan Cash Management Agreement or promptly after receipt thereof by
Senior Lender, as the case may be. Senior Lender may elect to change the Agent
under the Senior Loan Cash Management Agreement provided that Senior Lender
shall give each Junior Lender not less than two (2) Business Days’ prior
written notice of any such change. Senior Lender shall cause the Senior Loan
Cash Management Agreement to provide that the Agent thereunder shall provide
each Junior Lender with access to information regarding the Cash Management
Account (as such term is defined in the Senior Loan Cash Management Agreement).

 

(ii)           Each Senior Junior Lender hereby
agrees to deliver to the applicable Subordinate Junior Lenders a copy of any
notice sent or received by such Senior Junior Lender with respect to its
applicable Junior Loan Cash Management Agreement, including, without
limitation, each 

 

61

 

disbursement
instruction delivered under such Senior Junior Loan Cash Management Agreement.
Such copies shall be delivered to each Subordinate Junior Lender concurrently
with the delivery of such notices to the Agent under the applicable Senior
Junior Loan Cash Management Agreement. A Senior Junior Lender may elect to
change the Agent under its applicable Senior Junior Loan Cash Management
Agreement, provided that such
Senior Junior Lender shall give each applicable Subordinate Junior Lender not
less than two (2) Business Days’ prior written notice of any such change.
Each Senior Junior Lender shall cause its applicable Senior Junior Loan Cash
Management Agreement to provide that the Agent thereunder shall provide each
applicable Subordinate Junior Lender with access to information regarding the
applicable Cash Management Account (as such term is defined in the applicable
Senior Junior Loan Cash Management Agreement).

 

(i)  Notices of Default.  (i) Each Junior Lender shall give Senior
Lender and each other Junior Lender notice of any Event of Default, acceleration
of its applicable Junior Loan and the commencement of any Equity Collateral
Enforcement Action under its Junior Loan Documents and, simultaneously with
giving such notices to its Junior Borrower, copies of notices given to its
Junior Borrower of events that with the passage of time and failure to cure,
would result in the occurrence of a “Default” or “Event of Default” under its
respective Junior Loan Documents.

 

(ii)           Senior Lender shall give each Junior
Lender written notice of any Event of Default, acceleration of the Senior Loan,
transfer of the Senior Loan to “special servicing” and the commencement of an
Enforcement Action under the Senior Loan Documents and, simultaneously with
giving such notices to Senior Borrower, copies of notices given to Senior
Borrower of events that with the passage of time and failure to cure, would
result in the occurrence of a “Default” or “Event of Default” under the Senior
Loan Documents.

 

(j)  Cooperation with Senior Lender.  At the request of Senior Lender, each Junior Lender
shall use reasonable efforts, at Senior Lender’s expense, to satisfy, and to
cooperate with Senior Lender in attempting to cause Senior Borrower, each
Senior Junior Borrower to satisfy, the market standards to which Senior Lender
customarily adheres or which may be reasonably required in the marketplace or
by the Rating Agencies in connection with the Securitization of the Senior
Loan, including, entering into (or consenting to, as applicable) any
modifications to this Agreement or the Senior Loan Documents or the Junior Loan
Documents, and to cooperate with Senior Lender in attempting to cause Senior
Borrower and the Junior Borrowers to execute such modifications to the Senior
Loan Documents and the applicable Junior Loan Documents, in any such case, as
may be reasonably requested by the Rating Agencies to effect the
Securitization; provided, however, a Junior Lender shall not be
required to modify or amend this Agreement or any Senior Loan Documents or its
respective Junior Loan Documents (or consent to such modification of the Senior
Loan Documents), if such modification or amendment would (1) materially
increase its respective Junior Borrower’s obligations under its Junior Loan
Documents or materially decrease such Junior Lender’s rights, remedies or
protections thereunder, (2) change the economic terms allocable to the
Junior Loans (including, without limitation, the basis upon which any reserve
requirement is triggered or suspended) under the Senior Loan Documents and
Junior Loan Documents), or (3) otherwise, in any Junior Lender’s judgment,
have any material adverse impact on such Junior Lender or its Junior Loan. In
connection with any Securitization, each Junior Lender agrees to provide for
inclusion in any disclosure document relating to the related Securitization
such information concerning such Junior Lender as the Senior Lender reasonably
determines to be necessary or appropriate. Subject to the foregoing
qualifications in clauses (1)-(3) in
the foregoing sentence, each Junior Lender agrees that if the Senior Loan is to
be included as an asset of a Securitization, such Junior Lender shall, at
Senior Lender’s request and expense, cooperate with the reasonable requests of
each Rating Agency and Senior Lender in connection with the Securitization.

 

62

 

(k)  LIBOR Determination Notices.  Senior Lender shall provide each Junior
Lender with a copy of its determination of the LIBOR Rate applicable to each
Interest Period under the Senior Loan promptly after determination thereof.

 

(l)  Books and Records.  Upon inspection of the books, records or
Premises of Borrower by Senior Lender pursuant to the terms of the Senior Loan
Documents, Senior Lender shall, upon request of any Junior Lender, take action
to encourage Senior Borrower to provide such Junior Lender access for its own
inspection of such books, records or the Premises. Upon any inspection of the
books, records or the Premises of any Junior Borrower by a Junior Lender,
pursuant to the terms of its respective Junior Loan Documents, such Junior
Lender shall, upon written request of Senior Lender and any other Junior
Lender, take action to encourage its Junior Borrower to reasonably cooperate to
provide Senior Lender and such other requesting Junior Lender access for its
own inspection of such books, records or the Premises. The provisions of this Section 15(l) shall not be
interpreted to limit in any way the rights in favor of any Junior Lender under
its respective Junior Loan Documents.

 

(m)  Resizing.  In connection with any Securitization of the
Senior Loan, Senior Lender may notify the Junior Lenders that it intends to
purchase a portion of certain of the Junior Loans and convert such purchased
portion of such Junior Loans into the Senior Loan and, if applicable, the more
senior Junior Loans, or require certain of the Junior Lenders to purchase a
portion of the Senior Loan and convert such purchased portion into one or more
of the Junior Loans (a “Resizing Notice”)
which purchase shall occur within ten (10) Business Days of the Resizing
Notice (the “Resizing Date”). Any
such resizing shall have no material adverse effect on any of the other Junior
Loans and shall not change the initial weighted average interest rate of the
Senior Loan and the Junior Loans. Provided that no Event of Default exists
under the Senior Loan or the affected Junior Loans, the affected Junior Lenders
shall either (i) sell a portion of their Junior Loans to Senior Lender
and, if applicable to the more senior Junior Lenders, or (ii) purchase a
portion of the Senior Loan from Senior Lender, and if applicable, a portion of
the more senior Junior Loans (the “Resized
Components”). The Resizing Notice shall set forth: (1) the
effective date of such resizing, (2) the principal amount of the Junior
Loans to be purchased and converted into the Senior Loan, and, if applicable,
into the more senior Junior Loans, or the principal amount of the Senior Loan
and, if applicable, the more senior Junior Loans, to be purchased and converted
into the affected Junior Loans, (3) the adjusted balance of the affected
Junior Loans after such purchase(s) and conversion, (4) the adjusted
Senior Loan balance after such purchase and conversion, (5) the adjusted
Spread of the affected Junior Loans after such purchase and conversion,
(6) the adjusted Spread of the Senior Loan after such purchase and
conversion, and (7) the adjusted amortization schedules, if applicable,
and release prices (both of which shall be allocated pro rata between the Senior Loan and the affected Junior
Loans), as between the Senior Loan and the affected Junior Loans. Senior Lender
and each Junior Lender each agrees that, at Senior Lender’s expense, the Senior
Loan Documents and the applicable Junior Loan Documents shall each be modified
accordingly in order to reflect the terms set forth in the Resizing Notice (on
or before the Resizing Date), which shall include (as applicable), among other
things, modifications to the Title Insurance Policy, Interest Rate Cap
Agreement, UCC Title Insurance Policy, and opinion letters delivered in
connection with the Senior Loan and the affected Junior Loans, which
modification documents shall be subject to the approval of the Senior Lender
and the other Junior Lenders, which approval shall not be unreasonably withheld
or delayed. True and correct copies of such modified documents shall be
delivered to each of the Junior Lenders promptly after execution thereof.
Notwithstanding anything to the contrary contained in this clause (m), any resizing to be
effectuated pursuant to this clause (m) shall only affect those of the
Junior Loans which at such time continue to be owned by the originating Junior
Lender (and originating Junior Noteholders) of each such Junior Loan.

 

(n)  Uncross of Properties.  Senior Lender or its Affiliates may remove
certain Individual Properties (each, an “Affected
Property”) in connection with or after a Securitization of the
Senior 

 

63

 

Loan; provided that (i) each Junior Lender
shall have approved of the structure and the documentation necessary to
effectuate the uncross of any Affected Property, and (ii) Senior Lender or
its Affiliates and each Junior Lender shall mutually agree as to the
cross-collateralization and cross-default of the debt allocated to each
Affected Property so removed from the Securitization all at Senior Lender’s
sole cost and expense (including reasonable attorneys’ fees). Notwithstanding
the foregoing, the obligations and rights of Senior Lender set forth in this Section 15(n) are limited to
the initial named Senior Lender hereunder and the trustee for any
Securitization of the Senior Loan, and no other successors or assigns of the
initial named Senior Lender hereunder shall have any obligations or rights
under this Section 15(n).

 

(o)  Property
Inspection Rights and Reports.  Senior Lender will use commercially
reasonable efforts to endeavor, at no cost to Senior Lender, to cause the
Senior Borrower to permit agents, representatives and employees of any Junior
Lender to inspect the Premises or any part thereof during normal business hours
on Business Days upon reasonable advance notice, provided that, as required pursuant to the Senior Loan
Agreement, such inspections are subject in all instances to the rights of tenants,
and provided that neither such inspections shall not unreasonably interfere
with the operation of business on the Premises. In addition, to the extent that
Senior Lender prepares or receives property reports or financial reports from
the Borrowers or with respect to the Premises (including any notices,
documents, plans, specifications or reports received in connection with
alterations to the Premises), Senior Lender will provide copies of such reports
to any Junior Lender at such Junior Lender’s request.

 

(p)  Interest Rate Cap Agreement.(1) 
[Notwithstanding the occurrence of an Event of Default under the Senior Loan,
until such time that Senior Borrower and each of the Junior Borrowers obtain
separate Interest Rate Cap Agreements for each of their respective loans,
Senior Lender shall distribute any payments received under the Interest Rate
Cap Agreement to each Junior Lender in the amount of such Junior Lender’s
allocable share of such payment.]

 

(1)                                  To be deleted
if there are interest rate cap agreements in place at Closing for each Junior
Loan.

 

(q)  Cooperation with Junior Lender(s).  At the request of any Junior Lender, Senior
Lender and each other Junior Lender shall use reasonable efforts, at such
requesting Junior Lender’s expense, to cooperate with such Junior Lender in
attempting to cause Senior Borrower and each affected Junior Borrower in such
Junior Lender’s creation of component notes, splitting its Junior Loan into or
one or more new mezzanine loans or consolidating one or more Junior Loans held
by such Junior Lender into a fewer number of Junior Loans, including entering
into (or consenting to, as applicable) any modifications to this Agreement, the
Senior Loan Documents or the affected Junior Loan Documents, and to cooperate
with such requesting Junior Lender in attempting to cause Senior Borrower and
the other Junior Borrowers to execute such modifications to the Senior Loan
Documents and the applicable Junior Loan Documents, in any such case, as may be
reasonably requested by the requesting Junior Lender; provided, however,
Senior Lender or any such Junior Lender shall not be required to modify or
amend this Agreement, any Senior Loan Documents or its respective Junior Loan
Documents (or consent to such modification of the Senior Loan Documents or the
applicable Junior Loan Documents), if such modification or amendment would
(1) materially increase Senior Borrower’s obligations under the Senior
Loan Documents or materially decrease the Senior Borrower’s rights, remedies or
protections thereunder or materially increase the respective Junior Borrower’s
obligations under its Junior Loan Documents or decrease such Junior Lender’s
rights, remedies or protections thereunder, (2) change the economic terms
allocable to the Senior Loan or the applicable Junior Loans (including, without
limitation, the basis upon which any reserve requirement is triggered or
suspended) under the Senior Loan Documents and/or applicable Junior Loan
Documents or (3) otherwise, in Senior Lender’s or any Junior Lender’s judgment,
have any material adverse impact on Senior Lender or such Junior Lender or on
the Senior Loan or such Junior Lender’s Junior Loan.

 

64

 

(r)  Ground Lease Default.  Notwithstanding anything contained herein to
the contrary, a Ground Lease Default (defined below) shall, for all purposes
hereunder, constitute a default under the Senior Loan with respect to which
Junior Lenders shall have the right to cure in accordance with this Section 15(r) whether or not
Senior Lender has cured such Ground Lease Default. In connection with any
default by the applicable Senior Borrower under a Ground Lease (a “Ground Lease Default”), Senior Lender
shall, subject to the limitations and conditions set forth below, comply with
each of the following provisions, to the extent applicable:

 

(i)            If Senior Lender shall receive any
written notice that a Ground Lease Default has occurred and is continuing,
Senior Lender shall promptly notify each Junior Lender in writing of the same
and promptly deliver to each Junior Lender a true and complete copy of each
such notice. Further, Senior Lender shall provide such documents and
information as each Junior Lender shall reasonably request concerning the
Ground Lease Default; provided
that, in the event such requested documentation and information is not in the
actual possession of Senior Lender, Senior Lender shall only be required to use
commercially reasonable efforts to obtain such information and the applicable
Junior Lender shall pay all reasonable costs and expenses of Senior Lender
incurred in connection with obtaining such requested documentation and
information.

 

(ii)           Senior Lender shall, if requested by
a Junior Lender, take all commercially reasonable action, to the extent permitted
under the defaulted Ground Lease and not performed by Senior Borrower, to
(A) cure any Ground Lease Default (to the extent such Ground Lease Default
is susceptible of cure by Senior Lender), to keep and maintain such Ground
Lease in full force and effect and (B) exercise any option to renew or
extend the Ground Lease and give written confirmation thereof to each Junior
Lender within thirty (30) days after such option is exercised; provided that the costs and expenses
incurred by Senior Lender in taking any such actions under this clause (ii) shall
be paid pro rata by the Junior Lenders, except to the extent such costs and
expenses are otherwise allocated to any party other than the Senior Lender
pursuant to the pooling and servicing agreement for the Securitization of the
Senior Loan.

 

(iii)          If the ground lessor shall reject the
Ground Lease under or pursuant to Section 365 of the Bankruptcy Code,
Senior Lender shall use commercially reasonable efforts to not permit the
Senior Borrower to elect to treat the Ground Lease as terminated, and shall use
commercially reasonable efforts to require the Senior Borrower to elect to
remain in possession of the Premises demised under the Ground Lease and the
leasehold estate under the Ground Lease.

 

(iv)          In the event that the Senior Lender
assumes a Ground Lease or becomes entitled to a New Lease from the ground
lessor prior to Senior Borrower rejecting such Ground Lease in a Proceeding,
Senior Lender hereby agrees that, in the event that a Junior Lender forecloses
or otherwise realizes upon its Equity Collateral in accordance with the terms
of this Agreement, including, but not limited to, the terms and provisions of Section 6 hereof, and thereby gains
title to such Equity Collateral, Senior Lender hereby agrees that, promptly
after the completion of such foreclosure or other action to transfer title to
such Equity Collateral, it will assign the assumed Ground Lease or New Lease to
the Senior Borrower.

 

(v)           Notwithstanding anything to the
contrary contained in this Agreement, (A) in the event that a Junior
Lender requests that Senior Lender take or refrain from taking any action
pursuant to this Section 15(r) and
Senior Lender complies with such request, such Junior Lender shall protect,
indemnify and save harmless the Indemnified Parties from and against any
claims, demands, penalties, fines, liabilities, settlements, damages, costs and
expenses of whatever kind or nature, known or unknown, contingent or otherwise,
whether incurred or imposed within or outside the judicial process, including,
without limitation, reasonable attorneys’ fees and disbursements imposed upon
or incurred by or asserted against any of the Indemnified Parties by reason of
such requested actions or inactions and (B) Senior Lender shall have no
obligation to 

 

65

 

take
or refrain from taking any action pursuant to this Section 15(r) (1) unless and until such
Junior Lender has cured all monetary Events of Default under the Senior Loan
Documents and all non-monetary Events of Default under the Senior Loan
Documents (other than those which are not susceptible of cure by Junior Lender
and which do not materially impair the value, use or operation of the Premises)
prior to the lapse of any cure periods set forth under Section 12(a)(ii) or (2) if
compliance with the provisions of this Section 15(r) would
(1) violate the Senior Loan Documents or any law, rule or regulation
or (2) in the event that the Senior Loan or any interest therein is
included as an asset of a real estate mortgage investment conduit (“REMIC”) within the meaning of
Section 860D(a) of the Code, cause the Senior Loan (or portion
thereof which is included in a REMIC) to fail to qualify at all times as a “qualified
mortgage” within the meaning of Section 860G(a)(3) of the Code, or,
subsequent to a foreclosure or delivery of a deed in lieu thereof, fail to
qualify the Premises, as “foreclosure property” within the meaning of
Section 860G(a)(8) of the Code. In addition, notwithstanding anything
to the contrary contained herein, if Senior Lender determines, in accordance
with Accepted Servicing Practices, that any other action in connection with a
Ground Lease Default is necessary to preserve the related Ground Lease or to
protect or preserve the lien of the Mortgage, Senior Lender may take any such
action; provided, in either
event, that Senior Lender or any servicer on its behalf shall not be obligated
to expend or advance any of its own funds if such Person determines that such
expenditure or advance would constitute a non-recoverable advance under the
terms of any servicing agreement governing the administration of the Senior
Loan (it being agreed that in the event Junior Lender delivers to Senior Lender
sums sufficient to cure any monetary default under the Ground Lease, the
expenditure of such sums shall not be deemed a non-recoverable expenditure).

 

(vi)          Any sums due to Senior Lender from a
Junior Lender under this Section 15(r) or
reasonably requested by Senior Lender in anticipation of incurring any expenses
required to be paid by such Junior Lender pursuant to this Section 15(r), shall be paid within
ten (10) Business Days of demand by Senior Lender. Failure to pay any such
sums within five (5) Business Days of Senior Lender’s written notification
to such Junior Lender that such Junior Lender failed to comply with the
requirements of the immediately preceding sentence will constitute a waiver by
such Junior Lender of any rights it may have under this Section 15(r).

 

(vii)         Notwithstanding anything to the
contrary contained herein, if Senior Lender and/or one or more Junior Lenders
elect to exercise any rights granted to a Junior Lender under this Section 15(r), Senior Lender and each
Senior Junior Lender acknowledge and agree that, as between Senior Lender and
each Junior Lender, the most junior Subordinate Junior Lender shall have the
superior right to exercise such rights.

 

(viii)        Nothing contained herein shall be deemed
to grant any Junior Lender the right to cure a Ground Lease Default beyond the
period for cure afforded to the Senior Lender or Junior Lender under the Ground
Lease (or any agreement entered into with the ground lessor thereunder).

 

(s)  Subordination of Ground Lease.  Senior Lender shall not consent to the
subordination of any Ground Lease to any fee mortgage, except to the extent
such subordination is required as a condition to receiving a New Lease, without
the prior written consent of each Junior Lender, which consent shall not be
unreasonably withheld, conditioned or delayed.

 

(t)  Modification of the Ground Lease.  Senior Lender shall not consent to a
modification or termination of the Ground Lease, except to the extent Senior
Lender has the obligation to so consent in the Senior Loan Documents, without
the prior written consent of each Junior Lender, which consent shall not be
unreasonably withheld, conditioned or delayed. Senior Lender shall use
commercially reasonable efforts to forward to each Junior Lender any notice
Senior Lender receives under each 

 

66

 

Ground Lease; provided, however,
that failure of Senior Lender to deliver such notice shall not impose any
liability on Senior Lender nor modify the obligations of the parties hereunder.

 

Section 16.  Financing of
the Junior Loans. 
(a) Notwithstanding any other provision hereof but subject to the
provisions of Section 16(b),
Senior Lender and each Junior Lender hereby consents to each Junior Lender’s
pledge (a “Pledge”) of its
respective Junior Loan and of the Separate Collateral to any entity which has
extended a credit facility to such Junior Lender that is a Qualified Transferee
or a financial institution whose long-term unsecured debt is rated at least “A”
(or the equivalent) or better by each Rating Agency (a “Loan Pledgee”), on the terms and conditions
set forth in this Section 16,
it is also agreed that the sale by a Junior Lender of its respective Junior
Loan to a Qualified Transferee and the simultaneous agreement by such Junior
Lender to repurchase its Junior Loan under an arrangement documented as a
repurchase agreement (the “Repo Agreement”)
shall qualify as a Pledge, provided all applicable terms and conditions of this
subsection (a) are complied with; provided
further that a Loan Pledgee which is not a Qualified Transferee may
not take title to the Separate Collateral without a Rating Agency Confirmation.
Upon written notice by a Junior Lender to Senior Lender and the other Junior
Lenders that the Pledge has been effected, Senior Lender and each Junior Lender
agrees to acknowledge receipt of such notice and thereafter agrees: (i) to
give Loan Pledgee written notice of any default by the applicable Junior Lender
under this Agreement of which default Senior Lender or such Junior Lender has
actual knowledge; (ii) to allow Loan Pledgee a period of ten
(10) days (in respect of a monetary default) and thirty (30) days (in
respect of a non-monetary default) by the applicable Junior Lender in respect
of its obligations to Senior Lender or such Junior Lender hereunder, but Loan
Pledgee shall not be obligated to cure any such default; (iii) that no
amendment or modification of this Agreement which adversely affects the rights
or obligations of the Junior Lender which has made a Pledge to such Loan
Pledgee, and no waiver or termination of any applicable Junior Lender’s rights
under this Agreement, shall be effective against Loan Pledgee without the
written consent of Loan Pledgee, which consent shall not be unreasonably
withheld; provided, however, the consent of the Loan Pledgee shall
not be required unless the applicable Junior Lender’s consent was required
pursuant to the terms of this Agreement to effect such modification, waiver or
termination; (iv) that Senior Lender shall give to Loan Pledgee copies of
any Senior Loan Default Notice and each Junior Lender shall give to Loan
Pledgee copies of any Junior Loan Default Notice issued by such Junior Lender
simultaneously with the giving of same to the applicable Junior Lender and
accept any cure thereof by Loan Pledgee made in accordance with the provisions
of Section 12 of this Agreement as if such cure were made by the
applicable Junior Lender; (v) that Senior Lender and each Junior Lender
shall deliver to Loan Pledgee such estoppel certificate(s) as Loan Pledgee
shall reasonably request, provided that any such estoppel certificate(s) shall
be in the form contemplated by Section 19
or in such other form reasonably acceptable to Senior Lender and such Junior
Lender; and (vi) that, upon written notice (a “Redirection Notice”) to Senior Lender or a Junior Lender by
Loan Pledgee that either (x) states that the pledging Junior Lender is in
default, beyond applicable cure periods, under such Junior Lender’s obligations
to Loan Pledgee pursuant to the applicable credit agreement (or Repo Agreement)
between such Junior Lender and Loan Pledgee (which notice need not be joined in
or confirmed by such Junior Lender), or (y) is joined in or confirmed by
such pledging Junior Lender countersigning the Redirection Notice, and until
such Redirection Notice is withdrawn or rescinded by Loan Pledgee, Senior
Lender and each Junior Lender shall remit to the applicable Loan Pledgee and
not to the applicable Junior Lender, any payments that Senior Lender or a
Junior Lender would otherwise be obligated to pay to such Junior Lender from
time to time pursuant to this Agreement, any Senior Loan Document, any Junior
Loan Document or any other agreement between Senior Lender or any Junior Lender
that relates to the Senior Loan or a Junior Loan. Each Junior Lender hereby
unconditionally and absolutely releases Senior Lender and the other Junior
Lenders from any liability to such Junior Lender on account of Senior Lender’s
or a Junior Lender’s compliance with any Redirection Notice believed by Senior
Lender or a Junior Lender to have been delivered by such Junior Lender’s Loan
Pledgee. Loan 

 

67

 

Pledgee shall be permitted
to fully exercise its rights and remedies against the applicable Junior Lender,
and realize on any and all collateral granted by the applicable Junior Lender
to Loan Pledgee (and accept an assignment in lieu of foreclosure as to such
collateral), in accordance with applicable law. In such event, the Senior
Lender and each of the other Junior Lenders shall recognize Loan Pledgee (and
any transferee which is also a Qualified Transferee at any foreclosure or
similar sale held by Loan Pledgee or any transfer in lieu of such foreclosure),
and its successors and assigns, as the successor to the applicable Junior
Lender’s rights, remedies and obligations under this Agreement and the Junior
Loan Documents and any such Loan Pledgee or Qualified Transferee shall assume
in writing (for the benefit of Senior Lender and the other Junior Lenders and
their respective successors and assigns) the obligations of the applicable
Junior Lender hereunder accruing from and after such Transfer and agrees to be
bound by the terms and provisions hereof, it being agreed that, notwithstanding
anything to the contrary contained herein, such Loan Pledgee shall not be
required to so assume applicable Junior Lender’s obligations hereunder prior to
such realization on such collateral. The rights of Loan Pledgee under this Section 16 shall remain effective
unless and until Loan Pledgee shall have notified the Senior Lender and Junior
Lenders in writing that its interest in the applicable Junior Loan has
terminated.

 

(b)           Notwithstanding any provisions herein
to the contrary, if a conduit (“Conduit”)
which is not a Qualified Transferee provides financing to Junior Lender, then
such Conduit will be a permitted “Loan Pledgee” despite the fact it is not a
Qualified Transferee if the following conditions are satisfied:

 

(i)            the loan (the “Conduit Inventory Loan”) made by the
Conduit to the Junior Lender to finance the acquisition and holding of its
interest in the Junior Lender’s Junior Loan will require a third party (the “Conduit Credit Enhancer”) to provide credit
enhancement;

 

(ii)           the Conduit Credit Enhancer and the
administrator of the Conduit will be a Qualified Transferee;

 

(iii)          the pledging Junior Lender will pledge
(or sell, transfer or assign as part of a repurchase facility) its interest in
the Junior Loan to the Conduit as collateral for the Conduit Inventory Loan;

 

(iv)          the Conduit Credit Enhancer and the
Conduit will agree that, if Junior Lender defaults under the Conduit Inventory
Loan, or if the Conduit is unable to refinance its outstanding commercial paper
even if there is no default by Junior Lender, the Conduit Credit Enhancer will
purchase the Conduit Inventory Loan from the Conduit, and the Conduit will
assign the pledge of Junior Lender’s interest in the Junior Loan to the Conduit
Credit Enhancer; and

 

(v)           unless the Conduit is in fact then a
Qualified Transferee, the Conduit will not without obtaining a Rating Agency
Confirmation from each Rating Agency have any greater right to acquire the
interests in the Junior Loan pledged by the Junior Lender, by foreclosure or
otherwise, than would any other purchaser that is not a Qualified Transferee at
a foreclosure sale conducted by a Loan Pledgee.

 

Section 17.  Obligations
Hereunder Not Affected. 
(a) All rights, interests, agreements and obligations of Senior
Lender and each Junior Lender under this Agreement shall remain in full force
and effect irrespective of:

 

(b)           any lack of validity or
enforceability of any of the Senior Loan Documents or any of the Junior Loan
Documents or any other agreement or instrument relating thereto;

 

(c)           any taking, exchange, release or
non-perfection of any other collateral, or any taking, release or amendment or
waiver of or consent to or departure from any guaranty, for all or any portion
of the Senior Loan or the Junior Loans;

 

(d)           any manner of application of
collateral, or proceeds thereof, to all or any portion of the Senior Loan or
the Junior Loans, or any manner of sale or other disposition of any collateral
for all or 

 

68

 

any portion of the Senior
Loan or the Junior Loans or any other assets of Senior Borrower or Junior
Borrowers or any other Affiliates of Senior Borrower or any Junior Borrower;

 

(e)           any change, restructuring or
termination of the ownership structure or existence of Borrower, Junior
Borrowers or any other Affiliates of Senior Borrower; or

 

(f)            any other circumstance which might
otherwise constitute a defense available to, or a discharge of, Senior
Borrower, any Junior Borrower or a subordinated creditor or Senior Lender or
any Junior Lender subject to the terms hereof.

 

(g)           This Agreement shall continue to be
effective or be reinstated, as the case may be, if at any time any payment of
all or any portion of the Senior Loan or a Junior Loan is rescinded or must
otherwise be returned by Senior Lender or a Junior Lender upon the insolvency,
bankruptcy or reorganization of Senior Borrower or a Junior Borrower or
otherwise, all as though such payment had not been made.

 

Section 18.  Notices.  All notices, consents, approvals and requests
(any of the foregoing, a “Notice”)
required or permitted hereunder or under any other Loan Document shall be given
in writing and shall be effective for all purposes if (i) hand-delivered;
(ii) sent by (A) certified or registered United States mail, postage
prepaid, return receipt requested or (B) expedited prepaid delivery
service, either commercial or United States Postal Service, with proof of
attempted delivery, or (iii) sent by telecopier (with advice by telephone
to recipient that a telecopy notice is forthcoming and a machine-generated
confirmation of successful transmission), addressed as follows (or at such
other address and Person as shall be designated from time to time by any party
hereto, as the case may be, in a written notice to the other parties hereto in
the manner provided for in this Section):

 

To
Senior Lender:

 

JPMorgan
Chase Bank, N.A.

c/o
Centerline Servicing Inc.

5221
N. O’Connor Blvd., Suite 600

Irving,
Texas 75039

Attention:
John Roach

Senior
Vice President, Asset Management

Facsimile
No. (972) 868-5493

 

With
a copy to:

 

Cadwalader,
Wickersham & Taft LLP

One
World Financial Center

New
York, NY 10281

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

Facsimile
No.: (212) 504-6666

 

69

 

To each of First Mezzanine Lender, Second Mezzanine Lender, Third

Mezzanine Lender, Fourth Mezzanine Lender, Fifth Mezzanine Lender,

Sixth Mezzanine Lender and Seventh Mezzanine Lender:

 

JPMorgan
Chase Bank, N.A.

c/o
Centerline Servicing Inc.

5221
N. O’Connor Blvd., Suite 600

Irving,
Texas 75039

Attention:
John Roach

Senior
Vice President, Asset Management

Facsimile
No. (972) 868-5493

 

With
a copy to:

 

Cadwalader,
Wickersham & Taft LLP

One
World Financial Center

New
York, NY 10281

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

Facsimile
No.: (212) 504-6666

 

A notice shall be deemed to
have been given: in the case of hand delivery, at the time of delivery; in the
case of registered or certified mail, when delivered or the first attempted delivery
on a Business Day; in the case of expedited prepaid delivery, upon the first
attempted delivery on a Business Day; or in the case of telecopy, upon sender’s
receipt of a machine-generated confirmation of successful transmission after
advice by telephone to recipient that a telecopy notice is forthcoming.

 

Section 19.  Estoppel.  (a) Each Junior Lender shall, within ten
(10) days following a request from Senior Lender or another Junior Lender,
provide Senior Lender or such Junior Lender with a written statement setting
forth the then current outstanding principal balance of the Junior Loan held by
such Junior Lender, the aggregate accrued and unpaid interest under the Junior
Loan held by such Junior Lender, and stating whether to such Junior Lender’s knowledge
any default or Event of Default exists under the Junior Loan held by such
Junior Lender or this Agreement.

 

(b)           Senior Lender shall, within ten
(10) days following a request from a Junior Lender, provide such Junior
Lender with a written statement setting forth the then current outstanding
principal balance of the Senior Loan, the aggregate accrued and unpaid interest
under the Senior Loan, and stating whether to Senior Lender’s knowledge any
default or Event of Default exists under the Senior Loan or this Agreement.

 

(c)           Any statement provided pursuant to
this Section 19 may be
relied upon by any Loan Pledgee, any investor or participant in the Senior Loan
or any Junior Loan, or any purchaser of the Senior Loan or any Junior Loan (or
of any interest or a participation interest therein), but may not be relied
upon by Senior Borrower, any Junior Borrower or any guarantor with respect to
the Senior Loan or any Junior Loan.

 

Section 20.  Further
Assurances.  So long as all or
any portion of the Senior Loan or any Junior Loan remains unpaid and any Senior
Loan Document encumbers the Premises or a Junior Loan Document encumbers the
Equity Collateral, Senior Lender and each Junior Lender shall each execute,
acknowledge and deliver in recordable form and upon demand of the other, any
other instruments or agreements reasonably required in order to carry out the
provisions of this Agreement or to effectuate the intent and purposes hereof.

 

Section 21.  No Third
Party Beneficiaries; No Modification.  The parties hereto do not intend the benefits
of this Agreement to inure to Senior Borrower, any Junior Borrower or any other
Person other than the parties hereto and the successors and permitted assigns
and a Loan Pledgee. This Agreement 

 

70

 

may not be changed or
terminated orally, but only by an agreement in writing signed by the party
against whom enforcement of any change is sought. If any Certificates are
outstanding, this Agreement will not be amended in any material respect unless
a Rating Agency Confirmation has been obtained with respect to such amendment.

 

Section 22.  Successors
and Assigns.  This Agreement
shall bind all successors and permitted assigns of each Junior Lender and
Senior Lender and shall inure to the benefit of all successors and permitted
assigns of Senior Lender and each Junior Lender.

 

Section 23.  Counterpart
Originals.  This Agreement may
be executed in counterpart originals, each of which shall constitute an
original, and all of which together shall constitute one and the same
agreement.

 

Section 24.  Governing
Law; Waiver of Jury Trial.  THIS AGREEMENT AND THE RESPECTIVE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
TO BE PERFORMED ENTIRELY WITHIN SUCH STATE. EACH OF THE PARTIES HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

Section 25.  Consents to
Jurisdiction.  Each of the
parties hereto irrevocably and unconditionally submits to the jurisdiction of
the United States District Court for the Southern District of New York, any
court in the State of New York located in the borough of Manhattan in the city
and county of New York, and any appellate court from any thereof, in any
action, proceeding or counterclaim arising out of or relating to this Agreement
or the transactions contemplated hereunder or for recognition or enforcement of
any judgment and each of the parties hereto irrevocably and unconditionally
agrees that all claims in respect of any action, proceeding or counterclaim
arising out of or relating to this Agreement or the transactions contemplated
hereunder may be heard or determined in such New York State court or, to the
extent permitted by law, in such federal court.

 

Section 26.  No Waiver by
Senior Lender or Junior Lenders. 
Senior Lender shall not be prejudiced in its rights under this Agreement
by any act or failure to act by Senior Borrower or any Junior Lender, or any
non-compliance of Senior Borrower or any Junior Lender with any agreement or
obligation, regardless of any knowledge thereof which Senior Lender may have or
with which Senior Lender may be charged; and no action of Senior Lender
permitted hereunder shall in any way affect or impair the rights of Senior
Lender and the obligations of Junior Lender under this Agreement. No delay on
the part of Senior Lender in the exercise of any rights or remedies shall
operate as a waiver thereof, and no single or partial exercise by Senior Lender
of any right or remedy shall preclude other or further exercise thereof or the
exercise of any other right or remedy; nor shall any modification or waiver of
any of the provisions of this Agreement be binding upon Senior Lender except as
expressly set forth in a writing duly signed and delivered on behalf of Senior
Lender. No Junior Lender shall be prejudiced in its rights under this Agreement
by any act or failure to act by Senior Borrower or Senior Lender or any Junior
Borrower or other Junior Lender, or any non-compliance of Senior Borrower or
Senior Lender or any Junior Borrower or other Junior Lender with any agreement
or obligation, regardless of any knowledge thereof which Junior Lender may have
or with which Junior Lender may be charged; and no action of Junior Lender
permitted hereunder shall in any way affect or impair the rights of such Junior
Lender and the obligations of Senior Lender and any other Junior Lenders under
this Agreement. No delay on the part of Junior Lender in the exercise of any
rights or remedies shall operate as a waiver thereof, and no single or partial
exercise by Junior Lender of any right or remedy shall preclude other right or
remedy; nor shall any modification or waiver of any of the provisions of this
Agreement be binding upon Junior Lender except as expressly set forth in a
writing duly signed 

 

71

 

and delivered on behalf of
Junior Lender. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law.

 

Section 27.  No Joint
Venture.  Nothing provided
herein is intended to create a joint venture, partnership, tenancy-in-common or
joint tenancy relationship between or among any of the parties hereto.

 

Section 28.  Captions.  The captions in this Agreement are inserted
only as a matter of convenience and for reference, and are not and shall not be
deemed to be a part hereof.

 

Section 29.  Conflicts.  In the event of any conflict, ambiguity or
inconsistency between the terms and conditions of this Agreement and the terms
and conditions of any of the Senior Loan Documents or the Junior Loan
Documents, the terms and conditions of this Agreement shall prevail, as between
Senior Lender and each Junior Lender, but shall not inure to the benefit of
Borrower or any Junior Borrower.

 

Section 30.  No Release.  Nothing herein contained shall operate
(a) to release Senior Borrower from (i) its obligation to keep and
perform all of the terms, conditions, obligations, covenants and agreements
contained in the Senior Loan Documents or (ii) any liability of Senior
Borrower under the Senior Loan Documents or (b) to release any Junior
Borrower from (i) its obligation to keep and perform all of the terms,
conditions, obligations, covenants and agreements contained in the applicable
Junior Loan Documents or (ii) any liability of a Junior Borrower under its
respective Junior Loan Documents.

 

Section 31.  Continuing
Agreement.  This Agreement is
a continuing agreement and shall remain in full force and effect until the
earlier of (x) payment in full of the Senior Loan and all of the Junior
Loans or (y) transfer of title to the Junior Lenders of their respective
Separate Collateral (provided, however, in such instance this Agreement
shall terminate with respect to any Junior Lender who acquires title to its
respective Equity Collateral and any applicable Subordinate Junior Lenders) or
(z) the transfer of all of the Premises by foreclosure of the Senior Loan
Documents or the exercise of power of sale contained therein by deed-in-lieu of
foreclosure; provided, however, that any rights or remedies of
any party hereto arising out of any breach of any provision hereof occurring
prior to the date of termination shall survive such termination. In the event
the Senior Loan is repaid in full, (x) the Senior Junior Lender with the
highest priority shall have the right to exercise all of the rights granted to
Senior Lender pursuant to this Agreement and shall, from and after the
repayment in full, be deemed to be the “Senior
Lender” and to be the holder of the “Senior Loan” for all purposes without requiring the amendment
of this Agreement, (y) references hereafter to the Senior Loan Agreement
shall be deemed to be references to the First Mezzanine Loan Agreement and
(z) references to “transfer of the Premises by foreclosure sale, sale by
power of sale or delivery of a deed in lieu of foreclosure” (or words of
similar import) shall be deemed to be references to transfer of the First
Mezzanine Lender’s Equity Collateral pursuant to any Equity Collateral
Enforcement Action. Notwithstanding the foregoing provisions of this Section 31, in the event the Senior
Loan or any Junior Loan is repaid in full, the Senior Lender or Junior Lender
that was the holder of such repaid loan shall have no further rights under this
Agreement, but this Agreement shall remain in effect as to any outstanding
Junior Lender. Notwithstanding any termination of this Agreement with respect
to any party hereto, each party hereto agrees that the restrictions regarding
release of collateral set forth in Section 8
above shall remain enforceable with respect to any letter(s) of credit
held by Senior Lender or any Junior Lender except as may be required pursuant
to the Senior Loan Documents, the applicable Junior Loan Documents or
applicable law.

 

Section 32.  Severability.  In the event that any provision of this
Agreement or the application hereof to any party hereto shall, to any extent,
be invalid or unenforceable under any applicable statute, regulation, or rule of
law, then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform to such statute,
regulation or rule of law, and the remainder of this Agreement and the
application of any such invalid or unenforceable provisions to parties,
jurisdictions or circumstances other than to whom or to which it is held
invalid or unenforceable, shall not be affected thereby nor shall same affect
the validity or enforceability of any other provision of this Agreement.

 

72

 

Section 33.  Expenses.  (a) To the extent not paid by Senior
Borrower or out of or from any collateral securing the Senior Loan which is
realized by Senior Lender, each Junior Lender agrees upon demand to pay to
Senior Lender the amount of any and all reasonable expenses, including, without
limitation, the reasonable fees and expenses of its counsel and of any experts
or agents, which Senior Lender may incur in connection with the
(i) exercise or enforcement of any of the rights of Senior Lender against
such Junior Lender hereunder to the extent that Senior Lender is the prevailing
party in any dispute with respect thereto or (ii) failure by such Junior
Lender to perform or observe any of the provisions hereof.

 

(b)           To the extent not paid by a Junior
Borrower out of or from any collateral securing the related Junior Loan which
is realized by the applicable Junior Lender, Senior Lender agrees upon demand
to pay to such Junior Lender the amount of any and all reasonable expenses,
including, without limitation, the reasonable fees and expenses of its counsel
and of any experts or agents, which such Junior Lender may incur in connection
with the (i) exercise or enforcement of any of the rights of such Junior
Lender against Senior Lender hereunder to the extent that such Junior Lender is
the prevailing party in any dispute with respect thereto or (ii) failure
by Senior Lender to perform or observe any of the provisions hereof.

 

(c)           To the extent not paid by a Junior
Borrower out of or from any collateral securing the related Junior Loan which
is realized by the applicable Junior Lender, each other Junior Lender agrees
upon demand to pay to such Junior Lender the amount of any and all reasonable
expenses, including, without limitation, the reasonable fees and expenses of
its counsel and of any experts or agents, which such Junior Lender may incur in
connection with the (i) exercise or enforcement of any of the rights of
such Junior Lender against such other Junior Lender hereunder to the extent
that such Junior Lender is the prevailing party in any dispute with respect
thereto or (ii) failure by such other Junior Lender to perform or observe
any of the provisions hereof.

 

Section 34.  Injunction.  Each party to this Agreement acknowledges
(and waives any defense based on a claim) that monetary damages are not an
adequate remedy to redress a breach by the other hereunder and that a breach by
any party hereunder would cause irreparable harm to any other party to this
Agreement. Accordingly, each party to this Agreement agrees that upon a breach
of this Agreement by any other party, the remedies of injunction, declaratory
judgment and specific performance shall be available to such non-breaching
party.

 

Section 35.  Mutual
Disclaimer.  (a) Senior
Lender and the Junior Lenders are each sophisticated lenders and/or investors
in real estate and their respective decision to enter into the Senior Loan and
the Junior Loans is based upon their own independent expert evaluation of the
terms, covenants, conditions and provisions of, respectively, the Senior Loan
Documents and the Junior Loan Documents and such other matters, materials and
market conditions and criteria which each of Senior Lender and the Junior
Lenders deem relevant. Each of Senior Lender and each of the Junior Lenders has
not relied in entering into this Agreement, and respectively, the Senior Loan,
the Senior Loan Documents, the Junior Loans and the Junior Loan Documents upon
any oral or written information, representation, warranty or covenant from any
other party hereto (or any oral or written information, representation,
warranty or covenant from any other party’s representatives, employees,
Affiliates or agents) other than the representations and warranties, if any, of
such other party contained herein and therein. Each of Senior Lender and each
of the Junior Lenders further acknowledges that no employee, agent or
representative of the other has been authorized to make, and that each of
Senior Lender and the Junior Lenders have not relied upon, any statements,
representations, warranties or covenants other than those specifically
contained in this Agreement. Without limiting the foregoing, each of Senior
Lender and each of the Junior Lenders acknowledges that the other has made no
representations or warranties as to the Senior Loan or the Junior Loans or the
Premises except as set forth herein (including, without limitation, the cash
flow of the Premises, the value, marketability, condition or future performance
thereof, the existence, status, adequacy or sufficiency of the leases, the 

 

73

 

tenancies or occupancies of
the Premises, or the sufficiency of the cash flow of the Premises, to pay all
amounts which may become due from time to time pursuant to the Senior Loan or
the Junior Loans).

 

(b)           Each of Senior Lender and each of the
Junior Lenders acknowledges that the Senior Loan, the Senior Loan Documents,
each of the Junior Loans, and each of the Junior Loan Documents are distinct,
separate transactions and loans, separate and apart from each other. Each of
Senior Lender and each of the Junior Lenders acknowledges that the other are
distinct separate lenders with distinct and separate loans with various rights
and remedies with respect to the Premises which are not in all respects
aligned.

 

Section 36. 
Indemnification.  Each
Junior Lender shall, as to notices delivered by it, indemnify Senior Lender
from and against any and all liabilities, obligations, losses, damages,
penalties and expenses of any kind or nature whatever that may be imposed on,
incurred by or asserted against Senior Lender in any manner relating to or
arising out of Senior Lender’s good faith reliance on any notice of default
delivered by such Junior Lender to Senior Lender pursuant to which any excess
cash flow that would otherwise be remitted to Senior Borrower pursuant to the
Senior Loan Documents is instead transferred to such Junior Lender pursuant to
the its respective Junior Loan Documents.

 

Section 37.  Affiliated
Mezzanine Lender. 
(a) Notwithstanding anything in this Agreement to the contrary, in
the event that at any time any Person who owns, directly or indirectly, more
than 50% of an economic, legal or other beneficial interest in Senior Borrower
or which has the power, directly or indirectly, to direct or cause the
direction of the management or policies of Senior Borrower, is the direct or
indirect holder of more than 25% of any Junior Loan, whether as a co-lender,
participant or otherwise, or otherwise Controls such Junior Lender (an “Affiliate Junior Lender”), such Affiliate
Junior Lender shall not be entitled to exercise (or to cause to be exercised,
through the exercise of voting rights, contracts rights, or otherwise) any of
the benefits, rights (including, but not limited to, consent and approval
rights) or remedies otherwise available to such Junior Lender pursuant to this
Agreement under Sections 6, 8,
10(b)-(d), 12(a)(i)-(ii), 12(b), 13, 15, 19(b) or 34 hereof or
to make any Protective Advances pursuant to or in connection with the
applicable Junior Loan Documents; provided,
however, that such Affiliate Junior Lender shall otherwise in all
events remain subject to and be bound by all of the duties, obligations,
covenants, representations, warranties, restrictions, conditions and
liabilities of a Junior Lender under this Agreement. Notwithstanding anything
hereinto contrary, Junior Lender shall be permitted to (i) Transfer the
applicable Junior Loan pursuant to and in accordance with the terms and
provisions of Section 5, and
(ii) modify the applicable Junior Loan Documents pursuant to and in
accordance with the terms and provisions of
Section 8(b) and 8(c).

 

(b)           Each Affiliate Junior Lender shall
also be subject to the following limitations and restrictions:

 

(i)            so long as the Senior Loan
Liabilities shall remain unsatisfied, such Affiliate Junior Lender shall not
take any of the following actions (or cause, through the exercise of voting
rights, contract rights or otherwise, any of the following actions to be
taken):

 

(A)          take, sue for, ask or
demand from any Senior Junior Borrower or Senior Borrower any payment on
account of the Junior Loan in which it has an interest; or

 

(B)           commence any
judicial or non-judicial action or proceeding to (I) collect the Rents, or
(II) have a receiver appointed to collect the Rents or take any other
actions with respect to the Premises;

 

(C)           interfere with
Senior Lender or any Senior Junior Lender in its administration and enforcement
of the Senior Loan or the applicable Senior Junior Loan and their respective
rights and remedies thereunder and pursuant to the Senior Loan Documents or the
applicable Senior Junior Loan Documents;

 

74

 

(D)          commence, prosecute
or participate in any suit, action, case or proceeding against Senior Borrower
or any Senior Junior Borrower in violation of the express provisions of this
Agreement or violate any of the other express terms or provisions of this
Agreement, and, in the event of any such violation, Senior Lender or such
Senior Junior Lender may intervene and interpose such defense or plea as it
shall elect, including that of bad faith filing by such Affiliate Junior
Lender, and shall, in any event, be entitled to restrain such actions in the
same suit, action, case or proceeding or in any independent suit, action, case
or proceeding; or

 

(E)           enforce against
Senior Borrower or any Senior Junior Borrower any right of such Affiliate
Junior Lender to approve, consent to or set standards with respect to
(A) any lease for any portion of the Premises, (B) any operating or
capital budget for the Premises, (C) any proposed alteration or modification
of the Premises, or (D) any other matter relating to the operation,
maintenance, management, repair and leasing of the Premises; and

 

(ii)           such Affiliate Junior Lender shall
not be entitled to (and hereby waives any right which it would otherwise have to
require) promptness, diligence, notice of acceptance or any other notice with
respect to the Senior Loan or any Senior Junior Loan, and Senior Lender or any
Senior Junior Lender shall have no obligation to protect, secure, perfect or
insure any security interest or lien on any property for the benefit of such
Affiliate Junior Lender or exhaust any right or take any action against Senior
Borrower or any Senior Junior Borrower or any other Person or property for the
benefit of such Affiliate Junior Lender.

 

(c)           Notwithstanding anything hereinto the
contrary, an Affiliate Junior Lender may exercise its rights pursuant to Section 14 hereof so long as such
Affiliate Junior Lender also pays as part of the Senior Junior Loan Purchase
Price, any liquidated damage amount, any exit fees and any prepayment premiums,
any spread maintenance or yield maintenance charges, any late charges or any
default interest incurred or accrued with respect to each Senior Junior Loan.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

75

 

IN
WITNESS WHEREOF, Senior Lender and the Junior Lenders have executed this
Agreement as of the date and year first set forth above.

 

	
   

  	
  SENIOR
  LENDER:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A., a banking association chartered under the laws
  of the United States of America

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  FIRST
  MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A., a banking association chartered under the laws
  of the United States of America

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  SECOND
  MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A., a banking association chartered under the laws
  of the United States of America

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  THIRD
  MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A., a banking association chartered under the laws
  of the United States of America

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
   

  	
  FOURTH MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., a banking association
  chartered under the laws of the United States of America

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
   

  	
  FIFTH MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., a banking association
  chartered under the laws of the United States of America

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  SIXTH
  MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A., a banking association chartered under the laws
  of the United States of America

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
   

  	
  SEVENTH
  MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A., a banking association chartered under the laws
  of the United States of America

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

SCHEDULE 1

 

BORROWERS

 

SENIOR BORROWER:

 

1.                                       301 HCR
Properties of Oklahoma City (Northwest), LLC

 

2.                                       304 HCR
Properties of Midwest City OK, LLC

 

3.                                       306 HCR
Properties of Oklahoma City (Southwest), LLC

 

4.                                       307 HCR
Properties of Tulsa OK, LLC

 

5.                                       503 HCR
Properties-Stratford Hall of Richmond VA, LLC

 

6.                                       512 HCR
Properties-Columbia SC, LLC

 

7.                                       526 HCR
Properties-Lexington SC, LLC

 

8.                                       527 HCR
Properties of Arlington VA, LLC

 

9.                                       531 HCR
Properties-West Ashley-Charleston SC, LLC

 

10.                                 539 HCR
Properties-Fair Oaks of Fairfax VA, LLC

 

11.                                 553 HCR
Properties-Imperial of Richmond VA, LLC

 

12.                                 670 HCR
Properties-Arden Courts of Annandale VA, LLC

 

13.                                 4015 HCR
Properties-Charleston of Hanahan SC, LLC

 

14.                                 4031 HCR
Properties-Oakmont of Union SC, LLC

 

15.                                 4032 HCR
Properties-Oakmont East-Greenville SC, LLC

 

16.                                 4033 HCR
Properties-Oakmont West-Greenville SC, LLC

 

17.                                 4071 HCR
Properties-Medical Care Center-Lynchburg VA, LLC

 

18.                                 4074 HCR
Properties of Alexandria VA, LLC

 

19.                                 HCR ManorCare
Maryland Properties II, LLC

 

20.                                 HCR ManorCare
Properties, LLC

 

21.                                 HCR ManorCare
West Virginia Properties, LLC

 

 

FIRST MEZZANINE BORROWER:

 

1.                                       HCR I-A
Properties, LLC

 

2.                                       HCR I-B
Properties, LLC

 

SECOND MEZZANINE BORROWER:

 

1.                                       HCR II
Properties, LLC

 

THIRD MEZZANINE BORROWER:

 

1.                                       HCR III Properties, LLC

 

FOURTH MEZZANINE BORROWER:

 

1.                                       HCR IV
Properties, LLC

 

FIFTH MEZZANINE BORROWER:

 

1.                                       HCR V
Properties, LLC

 

SIXTH MEZZANINE BORROWER:

 

1.                                       HCR VI
Properties, LLC

 

SEVENTH MEZZANINE BORROWER:

 

1.                                       HCR VII
Properties, LLC

 

each of the above, a Delaware
limited liability company

 

 

 

 

INTERCREDITOR AGREEMENT

 

by and among

 

JPMORGAN CHASE BANK, N.A., as Senior Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as First Mezzanine Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as Second Mezzanine Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as Third Mezzanine Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as Fourth Mezzanine Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as Fifth Mezzanine Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as Sixth Mezzanine Lender

 

and

 

JPMORGAN CHASE BANK, N.A., as Seventh
Mezzanine Lender

 

 

Dated as of December 21, 2007

 

 

 

 

INTERCREDITOR AGREEMENT

 

THIS INTERCREDITOR AGREEMENT (this “Agreement”),
dated as of December 21, 2007, by and among JPMORGAN
CHASE BANK, N.A., a banking association chartered under the laws of
the United States of America (together with its successors and assigns, “Senior Lender”), as collateral agent for itself and the
other Senior Noteholders (as defined below), JPMORGAN
CHASE BANK, N.A., a banking association chartered under the laws of
the United States of America (together with its successors and assigns, “First Mezzanine Lender”), as collateral agent for itself and
the other First Mezzanine Noteholders (as defined below), JPMORGAN
CHASE BANK, N.A., a banking association chartered under the laws of
the United States of America (together with its successors and assigns, “Second Mezzanine Lender”), as collateral agent for itself
and the other Second Mezzanine Noteholders (as defined below), JPMORGAN CHASE BANK, N.A., a banking association chartered
under the laws of the United States of America (together with its successors
and assigns, “Third Mezzanine Lender”), as
collateral agent for itself and the other Third Mezzanine Noteholders (as
defined below), JPMORGAN CHASE BANK, N.A., a
banking association chartered under the laws of the United States of America
(together with its successors and assigns, “Fourth
Mezzanine Lender”), as collateral agent for itself and the other
Fourth Mezzanine Noteholders (as defined below), JPMORGAN
CHASE BANK, N.A., a banking association chartered under the laws of
the United States of America (together with its successors and assigns, “Fifth Mezzanine Lender”), as collateral agent for itself and
the other Fifth Mezzanine Noteholders (as defined  below), JPMORGAN CHASE BANK, N.A.,
a banking association chartered under the laws of the United States
of America (together with its successors and assigns, “Sixth
Mezzanine Lender”), as collateral agent for itself and the other
Sixth Mezzanine Noteholders (as defined below), and JPMORGAN
CHASE BANK, N.A., a banking association chartered under the laws of
the United States of America (together with its successors and assigns, “Seventh Mezzanine Lender”), as collateral agent for itself
and the other Seventh Mezzanine Noteholders (as defined below).  First Mezzanine Lender, Second Mezzanine
Lender, Third Mezzanine Lender, Fourth Mezzanine Lender, Fifth Mezzanine
Lender, Sixth Mezzanine Lender and Seventh Mezzanine Lender are each a “Junior Lender” and, collectively, “Junior
Lenders”.

 

RECITALS

 

WHEREAS, pursuant to the terms, provisions and conditions
set forth in that certain Loan Agreement, dated as of the date hereof by and
between Senior Borrower (as defined below) and Senior Lender (as the same may
be amended, replaced, restated, supplemented or otherwise modified from time to
time, the “Senior Loan Agreement”), Senior
Lender has made a loan to Senior Borrower in the original principal amount of
Three Billion and No/100 Dollars ($3,000,000,000.00) (the “Senior Loan”),
which Senior Loan is evidenced by that certain Promissory Note, dated as of the
date hereof, given by Senior Borrower to JPMorgan Chase Bank, N.A., a banking
association chartered under the laws of the United States of America, Column
Financial, Inc., a Delaware corporation, and Bank of America, N.A., a
banking association chartered under the laws of the United States of America
(collectively, the “Senior Noteholders”),
in the stated principal amount of Three Billion and 

 

 

No/100
Dollars ($3,000,000,000.00) (as the same may be consolidated, extended,
severed, split, amended, replaced, restated, supplemented or otherwise modified
from time to time, the “Senior Note”),
and secured by, among other things, the Mortgages (as defined below), which
Mortgages encumber the real property and all improvements thereon and
appurtenances thereto described therein (collectively, the “Premises”) (the Mortgages, and together with the Senior Loan
Agreement, the Senior Note and the other agreements, instruments and documents
set forth on Exhibit A hereto, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time,
subject to the terms and conditions contained in this Agreement, collectively,
the “Senior Loan Documents”);

 

WHEREAS, pursuant to the terms, provisions and conditions
set forth in that certain Loan Agreement (First Mezzanine Loan), dated as of
the date hereof by and between First Mezzanine Borrower (as defined below) and
First Mezzanine Lender (as the same may be amended, replaced, restated,
supplemented or otherwise modified from time to time, the “First
Mezzanine Loan Agreement”), First Mezzanine Lender has made a loan
to First Mezzanine Borrower in the original principal amount of One Hundred
Million and No/100 Dollars ($100,000,000.00) (the “First
Mezzanine Loan”), which First Mezzanine Loan is evidenced by that
certain Promissory Note (First Mezzanine Loan), dated as of the date hereof,
given by First Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking
association chartered under the laws of the United States of America, Column
Financial, Inc., a Delaware corporation, and Bank of America, N.A., a
banking association chartered under the laws of the United States of America
(collectively, the “First Mezzanine
Noteholders”), in the stated principal amount of One Hundred Million
and No/100 Dollars ($100,000,000.00) (as the same may be consolidated,
extended, severed, split, amended, replaced, restated, supplemented or
otherwise modified from time to time, the “First Mezzanine Note”),
and secured by, among other things, certain Pledge and Security Agreement
(First Mezzanine Loan), dated as of the date hereof, from First Mezzanine
Borrower in favor of First Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “First  Mezzanine Pledge
Agreement”), pursuant to which First Mezzanine Lender is
granted a first priority security interest in the Pledged Collateral (as
defined in and more fully described therein). 
The First Mezzanine Pledge Agreement, together with the First Mezzanine
Loan Agreement, the First Mezzanine Note and the other agreements, instruments
and documents set forth on Exhibit B attached hereto, as the same
may be amended, restated, replaced, supplemented or otherwise modified from time
to time, subject to the terms and conditions contained in this Agreement, are
herein collectively referred to as the “First Mezzanine Loan
Documents”;

 

WHEREAS, pursuant to the terms, provisions and conditions
set forth in that certain Loan Agreement (Second Mezzanine Loan), dated as of
the date hereof, by and between Second Mezzanine Borrower (as defined below)
and Second Mezzanine Lender (as the same may be amended, replaced, restated,
supplemented or otherwise modified from time to time, the “Second Mezzanine
Loan Agreement”), Second Mezzanine Lender has made a loan to Second
Mezzanine Borrower in the original principal amount of Two Hundred Fifty
Million and No/100 Dollars ($250,000,000.00) (the “Second
Mezzanine Loan”), which Second Mezzanine Loan is evidenced by that
certain Promissory Note (Second Mezzanine Loan), dated as of the date hereof,
given by Second Mezzanine Borrower to JPMorgan Chase 

 

2

 

Bank,
N.A., a banking association chartered under the laws of the United States of
America, Column Financial, Inc., a Delaware corporation, and Bank of
America, N.A., a banking association chartered under the laws of the United
States of America (collectively, the “Second Mezzanine
Noteholders”), in the stated principal amount of Two Hundred Fifty
Million and No/100 Dollars ($250,000,000.00) (as the same may be consolidated,
extended, severed, split, amended, replaced, restated, supplemented or
otherwise modified from time to time, the “Second Mezzanine Note”),
and secured by, among other things, certain Pledge and Security Agreement
(Second Mezzanine Loan), dated as of the date hereof from Second Mezzanine
Borrower in favor of Second Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Second  Mezzanine Pledge
Agreement”), pursuant to which Second Mezzanine Lender is
granted a first priority security interest in the Pledged Collateral (as
defined in and more fully described therein). 
The Second Mezzanine Pledge Agreement, together with the Second
Mezzanine Loan Agreement, the Second Mezzanine Note and the other agreements,
instruments and documents set forth on Exhibit C attached hereto,
as the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time, subject to the terms and conditions contained in
this Agreement, are herein collectively referred to as the “Second Mezzanine Loan Documents”;

 

WHEREAS, pursuant to the terms, provisions and conditions set
forth in that certain Loan Agreement (Third Mezzanine Loan), dated as of the
date hereof by and between Third Mezzanine Borrower (as defined below) and
Third Mezzanine Lender (as the same may be amended, replaced, restated,
supplemented or otherwise modified from time to time, the “Third
Mezzanine Loan Agreement”), Third Mezzanine Lender has made a loan
to Third Mezzanine Borrower in the original principal amount of Two Hundred
Fifty Million and No/100 Dollars ($250,000,000.00) (the “Third
Mezzanine Loan”), which Third Mezzanine Loan is evidenced by that
certain Promissory Note (Third Mezzanine Loan), dated as of the date hereof,
given by Third Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking
association chartered under the laws of the United States of America, Column
Financial, Inc., a Delaware corporation, and Bank of America, N.A., a
banking association chartered under the laws of the United States of America
(collectively, the “Third Mezzanine
Noteholders”), in the stated principal amount of Two Hundred Fifty
Million and No/100 Dollars ($250,000,000.00) (as the same may be consolidated,
extended, severed, split, amended, replaced, restated, supplemented or
otherwise modified from time to time, the “Third Mezzanine Note”),
and secured by, among other things, certain Pledge and Security Agreement
(Third Mezzanine Loan), dated as of the date hereof, from Third Mezzanine
Borrower in favor of Third Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Third  Mezzanine Pledge
Agreement”), pursuant to which Third Mezzanine Lender is
granted a first priority security interest in the Pledged Collateral (as
defined in and more fully described therein). 
The Third Mezzanine Pledge Agreement, together with the Third Mezzanine
Loan Agreement, the Third Mezzanine Note and the other agreements, instruments
and documents set forth on Exhibit D attached hereto, as the same
may be amended, restated, replaced, supplemented or otherwise modified from
time to time, subject to the terms and conditions contained in this Agreement,
are herein collectively referred to as the “Third
Mezzanine Loan Documents”;

 

3

 

WHEREAS, pursuant to the terms, provisions and conditions
set forth in that certain Loan Agreement (Fourth Mezzanine Loan), dated as of
the date hereof, by and between Fourth Mezzanine Borrower (as defined below)
and Fourth Mezzanine Lender (as the same may be amended, replaced, restated,
supplemented or otherwise modified from time to time, the “Fourth
Mezzanine Loan Agreement”), Fourth Mezzanine Lender has made a loan
to Fourth Mezzanine Borrower in the original principal amount of Two Hundred
Fifty Million and No/100 Dollars ($250,000,000.00) (the “Fourth
Mezzanine Loan”), which Fourth Mezzanine Loan is evidenced by that
certain Promissory Note (Fourth Mezzanine Loan), dated as of the date hereof,
given by Fourth Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking
association chartered under the laws of the United States of America, Column
Financial, Inc., a Delaware corporation, and Bank of America, N.A., a
banking association chartered under the laws of the United States of America
(collectively, the “Fourth Mezzanine
Noteholders”), in the stated principal amount of Two Hundred Fifty
Million and No/100 Dollars ($250,000,000.00) (as the same may be consolidated,
extended, severed, split, amended, replaced, restated, supplemented or
otherwise modified from time to time, the “Fourth Mezzanine Note”),
and secured by, among other things, certain Pledge and Security Agreement
(Fourth Mezzanine Loan), dated as of the date hereof, from Fourth Mezzanine
Borrower in favor of Fourth Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Fourth  Mezzanine Pledge
Agreement”), pursuant to which Fourth Mezzanine Lender is
granted a first priority security interest in the Pledged Collateral (as
defined in and more fully described therein). 
The Fourth Mezzanine Pledge Agreement, together with the Fourth
Mezzanine Loan Agreement, the Fourth Mezzanine Note and the other agreements,
instruments and documents set forth on Exhibit E attached hereto,
as the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time, subject to the terms and conditions contained in
this Agreement, are herein collectively referred to as the “Fourth Mezzanine Loan Documents”;

 

WHEREAS, pursuant to the terms, provisions and conditions set
forth in that certain Loan Agreement (Fifth Mezzanine Loan), dated as of the
date hereof, by and between Fifth Mezzanine Borrower (as defined below) and
Fifth Mezzanine Lender (as the same may be amended, replaced, restated,
supplemented or otherwise modified from time to time, the “Fifth
Mezzanine Loan Agreement”), Fifth Mezzanine Lender has made a loan
to Fifth Mezzanine Borrower in the original principal amount of Two Hundred
Fifty Million and No/100 Dollars ($250,000,000.00) (the “Fifth
Mezzanine Loan”), which Fifth Mezzanine Loan is evidenced by that
certain Promissory Note (Fifth Mezzanine Loan), dated as of the date hereof,
given by Fifth Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking
association chartered under the laws of the United States of America, Column
Financial, Inc., a Delaware corporation, and Bank of America, N.A., a
banking association chartered under the laws of the United States of America
(collectively, the “Fifth Mezzanine
Noteholders”), in the stated principal amount of Two Hundred Fifty
Million and No/100 Dollars ($250,000,000.00) (as the same may be consolidated,
extended, severed, split, amended, replaced, restated, supplemented or
otherwise modified from time to time, the “Fifth Mezzanine Note”),
and secured by, among other things, certain Pledge and Security Agreement
(Fifth Mezzanine Loan), dated as of the date hereof, from Fifth Mezzanine
Borrower in favor of Fifth Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Fifth  Mezzanine Pledge 

 

4

 

Agreement”), pursuant to
which Fifth Mezzanine Lender is granted a first priority security interest
in the Pledged Collateral (as defined in and more fully described
therein).  The Fifth Mezzanine Pledge
Agreement, together with the Fifth Mezzanine Loan Agreement, the Fifth
Mezzanine Note and the other agreements, instruments and documents set forth on
Exhibit F attached hereto, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time, subject to the
terms and conditions contained in this Agreement, are herein collectively
referred to as the “Fifth Mezzanine Loan
Documents”;

 

WHEREAS, pursuant to the terms, provisions and conditions
set forth in that certain Loan Agreement (Sixth Mezzanine Loan), dated as of
the date hereof, by and between Sixth Mezzanine Borrower (as defined below) and
Sixth Mezzanine Lender (as the same may be amended, replaced, restated, supplemented
or otherwise modified from time to time, the “Sixth
Mezzanine Loan Agreement”), Sixth Mezzanine Lender has made a loan
to Sixth Mezzanine Borrower in the original principal amount of Two Hundred
Fifty Million and No/100 Dollars ($250,000,000.00) (the “Sixth
Mezzanine Loan”), which Sixth Mezzanine Loan is evidenced by that
certain Promissory Note (Sixth Mezzanine Loan), dated as of the date hereof,
given by Sixth Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking
association chartered under the laws of the United States of America, Column
Financial, Inc., a Delaware corporation, and Bank of America, N.A., a
banking association chartered under the laws of the United States of America
(collectively, the “Sixth Mezzanine
Noteholders”), in the stated principal amount of Two Hundred Fifty
Million and No/100 Dollars ($250,000,000.00) (as the same may be consolidated,
extended, severed, split, amended, replaced, restated, supplemented or
otherwise modified from time to time, the “Sixth Mezzanine Note”),
and secured by, among other things, certain Pledge and Security Agreement
(Sixth Mezzanine Loan), dated as of the date hereof, from Sixth Mezzanine
Borrower in favor of Sixth Mezzanine Lender (as the same may be amended,
replaced, restated, supplemented or otherwise modified from time to time, the “Sixth  Mezzanine Pledge
Agreement”), pursuant to which Sixth Mezzanine Lender is
granted a first priority security interest in the Pledged Collateral (as
defined in and more fully described therein). 
The Sixth Mezzanine Pledge Agreement, together with the Sixth Mezzanine
Loan Agreement, the Sixth Mezzanine Note and the other agreements, instruments
and documents set forth on Exhibit G attached hereto, as the same
may be amended, restated, replaced, supplemented or otherwise modified from
time to time, subject to the terms and conditions contained in this Agreement,
are herein collectively referred to as the “Sixth
Mezzanine Loan Documents”;

 

WHEREAS, pursuant to the terms, provisions and conditions
set forth in that certain Loan Agreement (Seventh Mezzanine Loan), dated as of
the date hereof, by and between Seventh Mezzanine Borrower (as defined below)
and Seventh Mezzanine Lender (as the same may be amended, replaced, restated,
supplemented or otherwise modified from time to time, the “Seventh
Mezzanine Loan Agreement”), Seventh Mezzanine Lender has made a loan
to Seventh Mezzanine Borrower in the original principal amount of Two Hundred
Fifty Million and No/100 Dollars ($250,000,000.00) (the “Seventh
Mezzanine Loan”), which Seventh Mezzanine Loan is evidenced by that
certain Promissory Note (Seventh Mezzanine Loan), dated as of the date hereof,
given by Seventh Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking
association chartered under the laws of the United States of America, Column
Financial, Inc., a Delaware corporation, and Bank of America, N.A., a
banking association chartered under the laws of the United States of America
(collectively, the 

 

5

 

“Seventh Mezzanine Noteholders”), in the stated principal
amount of Two Hundred Fifty Million and No/100 Dollars ($250,000,000.00) (as
the same may be consolidated, extended, severed, split, amended, replaced,
restated, supplemented or otherwise modified from time to time, the “Seventh Mezzanine Note”), and secured by, among other
things, certain Pledge and Security Agreement (Seventh Mezzanine Loan), dated
as of the date hereof, from Seventh Mezzanine Borrower in favor of Seventh
Mezzanine Lender (as the same may be amended, replaced, restated, supplemented
or otherwise modified from time to time, the “Seventh
Mezzanine Pledge Agreement”),
pursuant to which Seventh Mezzanine Lender is granted a first priority
security interest in the Pledged Collateral (as defined in and more fully
described therein).  The Seventh
Mezzanine Pledge Agreement, together with the Seventh Mezzanine Loan Agreement,
the Seventh Mezzanine Note and the other agreements, instruments and documents
set forth on Exhibit H attached hereto, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time,
subject to the terms and conditions contained in this Agreement, are herein
collectively referred to as the “Seventh Mezzanine Loan
Documents”;

 

WHEREAS, Senior Lender and Junior Lenders desire to enter
into this Agreement to provide for the relative priority of, and to evidence
certain agreements with respect to, the Senior Loan Documents, the First
Mezzanine Loan Documents, the Second Mezzanine Loan Documents, the Third
Mezzanine Loan Documents, the Fourth Mezzanine Loan Documents, the Fifth
Mezzanine Loan Documents, the Sixth Mezzanine Loan Documents and the Seventh
Mezzanine Loan Documents on the terms and conditions hereinbelow set forth.

 

NOW, THEREFORE, in consideration of the foregoing recitals
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Senior Lender and Junior Lenders hereby agree as
follows:

 

Section 1.               Certain Definitions; Rules of
Construction.  (a)  As used
in this Agreement, the following capitalized terms shall have the following
meanings:

 

“Accepted Servicing Practices” means any servicing standard
by which Senior Lender may be bound under the applicable servicing agreement
pursuant to which the Senior Loan is serviced.

 

“Additional Covered Junior Loans” has the meaning provided in
Section 14(c) hereof.

 

“Affected Property” has the meaning provided in Section 15(n) hereof.

 

“Affiliate” means, as to any particular Person (as
hereinafter defined), any Person directly or indirectly, through one or more
intermediaries, Controlling, Controlled by or under common Control with the
Person or Persons in question.

 

“Affiliate Junior Lender” shall have the meaning set forth in
Section 38 hereof.

 

6

 

“Agreement” means this Agreement, as the same may be amended
and in effect from time to time, pursuant to the terms hereof.

 

“Award” has the meaning set forth in Section 10(e) hereof.

 

“BofA” means Bank of America, N.A., a national banking
association, and its successors in interest.

 

“Borrower Group” has the meaning set forth in Section 11(d)(ii) hereof.

 

“Business Day” means any day other than a Saturday, Sunday or
any other day on which national banks in New York, New York or the place of
business of any servicer of the Loans are not open for business.

 

“CDO” has the meaning set forth in the definition of the term
“Qualified Transferee”.

 

“CDO Asset Manager” with respect to any Securitization
Vehicle (hereinafter defined) that is a CDO, means the entity that is
responsible for managing or administering any Junior Loan (or any interest
therein) as an underlying asset of such Securitization Vehicle or, if
applicable, as an asset of any Intervening Trust Vehicle (including, without
limitation, the right to exercise any consent and control rights available to
the holder of a Junior Loan).

 

“Certificates” means any securities (including all classes
thereof) representing beneficial ownership interests in the Senior Loan or in a
pool of mortgage loans including the Senior Loan issued in connection with a
Securitization of the Senior Loan.

 

“Column” means Column Financial, Inc., a Delaware
corporation, and its successors in interest.

 

“Conduit” has the meaning set forth in Section 16(b) hereof.

 

“Conduit Credit Enhancer” has the meaning set forth in Section 16(b)(i) hereof.

 

“Conduit Inventory Loan” has the meaning set forth in Section 16(b)(i) hereof.

 

“Control” means the ownership, directly or indirectly, in the
aggregate of more than fifty percent (50%) of the beneficial ownership
interests of an entity and the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of an entity,
whether through the ability to exercise voting power, by contract or otherwise.
“Controlled by,” “Controlling” and “under common Control with” shall have the
respective correlative meaning thereto.

 

“Cooperation Agreement” means that certain Cooperation
Agreement of even date herewith by and among the Senior Lender, each Junior
Lender, Senior Borrower and each 

 

7

 

Junior
Borrower, as the same may be amended, replaced, restated, supplemented or
otherwise modified from time to time.

 

“CS” means CS Securities (USA) LLC, a Delaware limited
liability company, and its successors interest.

 

“Deed in Lieu” has the meaning provided in Section 14(b) hereof.

 

“Directing Junior Lender” has the meaning provided in Section 5(c) hereof.

 

“Directing Senior Lender” has the meaning provided in Section 5(d) hereof.

 

“Eligibility Requirements” means, with respect to any Person,
that such Person (i) has total assets (in name or under management) in
excess of $650,000,000 and (except with respect to a pension advisory firm or
similar fiduciary) capital/statutory surplus or shareholder’s equity of
$250,000,000 and (ii) is regularly engaged in the business of making or
owning commercial real estate loans (including mezzanine loans with respect to
commercial real estate) or owning or operating commercial real estate
properties.

 

“Enforcement Action” means any (i) judicial or
non-judicial foreclosure proceeding, the exercise of any power of sale, the
taking of a deed or assignment in lieu of foreclosure, the obtaining of a
receiver or the taking of any other enforcement action against the Premises or
any portion thereof, or Senior Borrower, including, without limitation, the
taking of possession or control of the Premises or any portion thereof,
(ii) acceleration of, or demand or action taken in order to collect, all
or any indebtedness secured by the Premises (other than giving notices of
default and statements of overdue amounts) or (iii) exercise of any right
or remedy available to Senior Lender under the Senior Loan Documents, at law,
in equity or otherwise with respect to Senior Borrower and/or the Premises or
any portion thereof.

 

“Equity Collateral” means the equity interests in Senior
Borrower or any Junior Borrower and all other collateral, products, proceeds,
rights and remedies granted or pledged pursuant to any of the Junior Loan
Documents, as the context may require.

 

“Equity Collateral Enforcement Action” means any action or
proceeding or other exercise of a Junior Lender’s rights and remedies commenced
by such Junior Lender, in law or in equity, or otherwise, in order to realize
upon the Equity Collateral (including, without limitation, an assignment in
lieu of foreclosure or other negotiated settlement in lieu of any such
enforcement action) other than the giving of notices of default and statements
of overdue amounts.

 

“Event of Default” as used herein means (i) with respect
to the Senior Loan and the Senior Loan Documents, any “Event of Default” (as
defined therein) thereunder which has occurred and is continuing (i.e., has not been cured by Senior Borrower, waived by
Senior Lender (in writing and not through operation of law) and has not
otherwise been or is not then being cured by a Junior Lender in accordance with
the terms of this Agreement or as to which the cure period available to a
Junior Lender hereunder has expired without a cure); (ii) with respect to
the First Mezzanine Loan and the First Mezzanine Loan Documents, any “Event of
Default” (as defined therein) thereunder which has occurred and is continuing (i.e., has not 

 

8

 

been
cured by First Mezzanine Borrower, waived by First Mezzanine Lender (in writing
and not through operation of law) and has not otherwise been or is not then
being cured by a Junior Lender in accordance with the terms of this Agreement
or as to which the cure period available to a Junior Lender hereunder has
expired without a cure); (iii) with respect to the Second Mezzanine Loan
and the Second Mezzanine Loan Documents, any “Event of Default” (as defined
therein) thereunder which has occurred and is continuing (i.e.,
has not been cured by Second Mezzanine Borrower, waived by Second Mezzanine
Lender (in writing and not through operation of law) and has not otherwise been
or is not then being cured by a Junior Lender in accordance with the terms of
this Agreement or as to which the cure period available to a Junior Lender
hereunder has expired without a cure); (iv) with respect to the Third
Mezzanine Loan and the Third Mezzanine Loan Documents, any “Event of Default”
(as defined therein) thereunder which has occurred and is continuing (i.e., has not been cured by Third Mezzanine Borrower, waived
by Third Mezzanine Lender (in writing and not through operation of law) and has
not otherwise been or is not then being cured by a Junior Lender in accordance
with the terms of this Agreement or as to which the cure period available to a
Junior Lender hereunder has expired without a cure); (v) with respect to
the Fourth Mezzanine Loan and the Fourth Mezzanine Loan Documents, any “Event
of Default” (as defined therein) thereunder which has occurred and is
continuing (i.e., has not been cured by Fourth
Mezzanine Borrower, waived by Fourth Mezzanine Lender (in writing and not
through operation of law) and has not otherwise been or is not then being cured
by a Junior Lender in accordance with the terms of this Agreement or as to
which the cure period available to a Junior Lender hereunder has expired
without a cure); (vi) with respect to the Fifth Mezzanine Loan and the
Fifth Mezzanine Loan Documents, any “Event of Default” (as defined therein)
thereunder which has occurred and is continuing (i.e.,
has not been cured by Fifth Mezzanine Borrower, waived by Fifth Mezzanine
Lender (in writing and not through operation of law) and has not otherwise been
or is not then being cured by a Junior Lender in accordance with the terms of
this Agreement or as to which the cure period available to a Junior Lender
hereunder has expired without a cure), (vii) with respect to the Sixth
Mezzanine Loan and the Sixth Mezzanine Loan Documents, any “Event of Default”
(as defined therein) thereunder which has occurred and is continuing (i.e., has not been cured by Sixth Mezzanine Borrower, waived
by Sixth Mezzanine Lender (in writing and not through operation of law) and has
not otherwise been or is not then being cured by a Junior Lender in accordance
with the terms of this Agreement or as to which the cure period available to a
Junior Lender hereunder has expired without a cure), and (viii) with
respect to the Seventh Mezzanine Loan and the Seventh Mezzanine Loan Documents,
any “Event of Default” (as defined therein) thereunder which has occurred and
is continuing (i.e., has not been cured by
Seventh Mezzanine Borrower, waived by Seventh Mezzanine Lender (in writing and
not through operation of law) and has not otherwise been or is not then being
cured by a Junior Lender in accordance with the terms of this Agreement or as
to which the cure period available to a Junior Lender hereunder has expired
without a cure).

 

“Extended Monetary Cure Period” has the meaning set forth in Section 12(a)(i) hereof.

 

“Extended Non-Monetary Cure Period” has the meaning set forth
in Section 12(a)(ii) hereof.

 

9

 

“Fifth Mezzanine Borrower” has the meaning set forth on Schedule 1
attached hereto.

 

“Fifth Mezzanine Cash Management Agreement” means any cash
management agreement executed in connection with, or the cash management
provisions of, the Fifth Mezzanine Loan Documents.

 

“Fifth Mezzanine Lender” has the meaning set forth in the Recitals
hereto.

 

“Fifth Mezzanine Loan” has the meaning set forth in the Recitals
hereto.

 

“Fifth Mezzanine Loan Agreement” has the meaning set forth in
the Recitals hereto.

 

“Fifth Mezzanine Loan Documents” has the meaning set forth in
the Recitals hereto.

 

“Fifth Mezzanine Loan Liabilities” means, collectively, all
of the indebtedness, liabilities and obligations of Fifth Mezzanine Borrower
under any Fifth Mezzanine Loan Document, including, without limitation
(i) the principal amount of, and accrued interest on (including, without
limitation, any interest which accrues after the commencement of any case,
proceeding or other action relating to the bankruptcy, insolvency or reorganization
of Fifth Mezzanine Borrower, whether or not such interest would be allowed in
such case, proceeding or action), the Fifth Mezzanine Loan, (ii) all other
indebtedness, obligations and liabilities of Fifth Mezzanine Borrower to Fifth
Mezzanine Lender now existing or hereafter incurred or created under the Fifth
Mezzanine Loan Documents, and (iii) all other indebtedness, obligations
and liabilities of Fifth Mezzanine Borrower to Fifth Mezzanine Lender now
existing or hereafter incurred, created and arising from or relating to the
Fifth Mezzanine Loan, including, without limitation, any late charges, default
interest, prepayment fees or premiums (including spread maintenance and yield
maintenance premiums), exit fees, advances and post-petition interest.

 

“Fifth Mezzanine Note” has the meaning set forth in the Recitals
hereto.

 

“Fifth  Mezzanine Noteholders”
has the meaning provided in the Recitals hereto.

 

“Fifth Mezzanine Pledge Agreement” has the meaning set forth
in the Recitals hereto.

 

“First  Mezzanine Borrower”
has the meaning set forth on Schedule 1 attached hereto.

 

“First  Mezzanine Cash Management
Agreement” means any cash management agreement executed in
connection with, or the cash management provisions of, the First Mezzanine Loan
Documents.

 

“First  Mezzanine Lender”
has the meaning set forth in the Recitals hereto.

 

10

 

“First  Mezzanine Loan”
has the meaning set forth in the Recitals hereto.

 

“First  Mezzanine Loan Agreement”
has the meaning set forth in the Recitals hereto.

 

“First  Mezzanine Loan Documents”
has the meaning set forth in the Recitals hereto.

 

“First  Mezzanine Loan Liabilities”
means, collectively, all of the indebtedness, liabilities and obligations of
the First Mezzanine Borrower under any First Mezzanine Loan Document,
including, without limitation (i) the principal amount of, and accrued
interest on (including, without limitation, any interest which accrues after
the commencement of any case, proceeding or other action relating to the
bankruptcy, insolvency or reorganization of First Mezzanine Borrower, whether
or not such interest would be allowed in such case, proceeding or action), the
First Mezzanine Loan, (ii) all other indebtedness, obligations and
liabilities of the First Mezzanine Borrower to First Mezzanine Lender now
existing or hereafter incurred or created under the First Mezzanine Loan
Documents, and (iii) all other indebtedness, obligations and liabilities
of First Mezzanine Borrower to First Mezzanine Lender now existing or hereafter
incurred, created and arising from or relating to the First Mezzanine Loan,
including, without limitation, any late charges, default interest, prepayment
fees or premiums (including spread maintenance and yield maintenance premiums),
exit fees, advances and post-petition interest.

 

“First  Mezzanine Note”
has the meaning set forth in the Recitals hereto.

 

“First  Mezzanine Noteholders”
has the meaning provided in the Recitals hereto.

 

“First  Mezzanine Pledge Agreement”
has the meaning set forth in the Recitals hereto.

 

“Fitch” means Fitch, Inc., and its successors in
interest.

 

“Fourth Mezzanine Borrower” has the meaning set forth on Schedule 1
attached hereto.

 

“Fourth Mezzanine Cash Management Agreement” means any cash
management agreement executed in connection with, or the cash management
provisions of, the Fourth  Mezzanine Loan
Documents.

 

“Fourth Mezzanine Lender” has the meaning set forth in the Recitals
hereto.

 

“Fourth Mezzanine Loan” has the meaning set forth in the Recitals
hereto.

 

“Fourth Mezzanine Loan Agreement” has the meaning set forth
in the Recitals hereto.

 

11

 

“Fourth Mezzanine Loan Documents” has the meaning set forth
in the Recitals hereto.

 

“Fourth Mezzanine Loan Liabilities” means, collectively, all
of the indebtedness, liabilities and obligations of Fourth  Mezzanine
Borrower under any Fourth  Mezzanine Loan
Document, including, without limitation (i) the principal amount of, and
accrued interest on (including, without limitation, any interest which accrues
after the commencement of any case, proceeding or other action relating to the
bankruptcy, insolvency or reorganization of Fourth  Mezzanine
Borrower, whether or not such interest would be allowed in such case,
proceeding or action), the Fourth  Mezzanine
Loan, (ii) all other indebtedness, obligations and liabilities of Fourth  Mezzanine Borrower to Fourth  Mezzanine
Lender now existing or hereafter incurred or created under the Fourth  Mezzanine Loan Documents, and (iii) all other
indebtedness, obligations and liabilities of Fourth  Mezzanine
Borrower to Fourth  Mezzanine
Lender now existing or hereafter incurred, created and arising from or relating
to the Fourth  Mezzanine Loan, including,
without limitation, any late charges, default interest, prepayment fees or
premiums (including spread maintenance and yield maintenance premiums), exit
fees, advances and post-petition interest.

 

“Fourth Mezzanine Note” has the meaning set forth in the Recitals
hereto.

 

“Fourth  Mezzanine Noteholders”
has the meaning provided in the Recitals hereto.

 

“Fourth Mezzanine Pledge Agreement” has the meaning set forth
in the Recitals hereto.

 

“Ground Lease” shall mean, individually and collectively, as
the context requires, those certain ground leases described on Schedule 2
hereto.

 

“Ground Lease Default” has the meaning provided in Section 15(r) hereof.

 

“Guarantor” has the meaning provided in Section 6(b) hereof.

 

“Guaranty Claim” has the meaning provided in Section 6(b) hereof.

 

“Indemnified Parties” means each Senior Lender as of the date
hereof, and each of its affiliates and their respective successors and assigns
(including any owner or holder of the Senior Note and/or any owner or holder of
any right, title and interest in the Senior Note) (and also including their
respective officers, directors, partners, members, employees, attorneys,
accountants, professionals and agents and each other person, if any,
controlling Senior Lender or any of its affiliates within the meaning of either
Section 15 of the Securities Act of 1933, as amended, or Section 20
of the Securities Exchange Act of 1934, as amended).

 

“Individual Property” has the meaning set forth in the Senior
Loan Agreement.

 

“Initial Junior Loan Non-Monetary Cure Period” has the
meaning provided in Section 12(b)(ii).

 

12

 

“Intervening Trust Vehicle” shall mean with respect to any
Securitization Vehicle that is a CDO, a trust vehicle or entity which holds a
Junior Loan (or any interest therein) as collateral securing (in whole or in
part) any obligation or security held by such Securitization Vehicle as
collateral for the CDO.

 

“JPMorgan” mean JPMorgan Chase Bank, N.A., a banking
association chartered under the laws of the United States of America, and its
successors in interest.

 

“Junior Borrower” means, collectively, First Mezzanine
Borrower, Second Mezzanine Borrower, Third Mezzanine Borrower, Fourth Mezzanine
Borrower, Fifth Mezzanine Borrower, Sixth Mezzanine Borrower and Seventh
Mezzanine Borrower, unless the context otherwise requires, in which case it
shall mean either First Mezzanine Borrower, Second Mezzanine Borrower, Third
Mezzanine Borrower, Fourth Mezzanine Borrower, Fifth Mezzanine Borrower, Sixth
Mezzanine Borrower or Seventh Mezzanine Borrower.

 

“Junior Borrower Group” has the meaning provided in Section 11(d)(iii) hereof.

 

“Junior Lender” means, collectively, First Mezzanine Lender,
Second Mezzanine Lender, Third Mezzanine Lender, Fourth Mezzanine Lender, Fifth
Mezzanine Lender, Sixth Mezzanine Borrower and Seventh Mezzanine Borrower,
unless the context otherwise requires, in which case it shall mean either First
Mezzanine Lender, Second Mezzanine Lender, Third Mezzanine Lender, Fourth
Mezzanine Lender, Fifth Mezzanine Lender, Sixth Mezzanine Borrower or Seventh
Mezzanine Borrower, individually.  As the
context requires, Junior Lenders shall have the following order of
priority:  (i) first, First
Mezzanine Lender; (ii) second, Second Mezzanine Lender; (iii) third,
Third Mezzanine Lender; (iv) fourth, Fourth Mezzanine Lender;
(v) fifth, Fifth Mezzanine Lender, (vi) sixth, Sixth Mezzanine Lender
and (vii) seventh, Seventh Mezzanine Lender.

 

“Junior Loan” means, collectively, First Mezzanine Loan,
Second Mezzanine Loan, Third Mezzanine Loan, Fourth Mezzanine Loan, Fifth
Mezzanine Loan, Sixth Mezzanine Borrower and Seventh Mezzanine Borrower, unless
the context otherwise requires, in which case it shall mean either First
Mezzanine Loan, Second Mezzanine Loan, Third Mezzanine Loan, Fourth Mezzanine
Loan, Fifth Mezzanine Loan, Sixth Mezzanine Borrower or Seventh Mezzanine
Borrower, individually.

 

“Junior Loan Agreement” means, collectively, the First
Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement, the Third
Mezzanine Loan Agreement, the Fourth Mezzanine Loan Agreement, the Fifth
Mezzanine Loan Agreement, the Sixth Mezzanine Loan Agreement and the Seventh
Mezzanine Loan Agreement, unless the context otherwise requires, in which case
it shall mean either the First Mezzanine Loan Agreement, the Second
Mezzanine Loan Agreement, the Third Mezzanine Loan Agreement, the Fourth
Mezzanine Loan Agreement, the Fifth Mezzanine Loan Agreement, the Sixth
Mezzanine Loan Agreement or the Seventh Mezzanine Loan Agreement, individually.

 

“Junior Loan Cash Management Agreement” means, collectively,
the First Mezzanine Cash Management Agreement, the Second Mezzanine Cash
Management 

 

13

 

Agreement,
the Third Mezzanine Cash Management Agreement, the Fourth Mezzanine Cash
Management Agreement, the Fifth Mezzanine Cash Management Agreement, the Sixth
Mezzanine Cash Management Agreement and the Seventh Mezzanine Cash Management
Agreement, unless the context otherwise requires, in which case it shall mean
either the First Mezzanine Cash Management Agreement, the Second Mezzanine Cash
Management Agreement, the Third Mezzanine Cash Management Agreement, the Fourth
Mezzanine Cash Management Agreement, the Fifth Mezzanine Cash Management
Agreement, the Sixth Mezzanine Cash Management Agreement or the Seventh
Mezzanine Cash Management Agreement, individually.

 

“Junior Loan Default Notice” has the meaning provided in Section 12(b) hereof.

 

“Junior Loan Documents” means, collectively, the First
Mezzanine Loan Documents, the Second Mezzanine Loan Documents, the Third
Mezzanine Loan Documents, the Fourth Mezzanine Loan Documents, the Fifth
Mezzanine Loan Documents, the Sixth Mezzanine Loan Documents and the Seventh
Mezzanine Loan Documents, unless the context otherwise requires, in which case
it shall mean either the First Mezzanine Loan Documents, the Second Mezzanine
Loan Documents, the Third Mezzanine Loan Documents, the Fourth Mezzanine Loan
Documents, the Fifth Mezzanine Loan Documents, the Sixth Mezzanine Loan
Documents or the Seventh Mezzanine Loan Documents, individually.

 

“Junior Loan Extended Monetary Cure Period” has the meaning
provided in Section 12(b)(i) hereof.

 

“Junior Loan Extended Non-Monetary Cure Period” has the
meaning provided in Section 12(b)(ii) hereof.

 

“Junior Loan Liabilities” means, collectively, the First
Mezzanine Loan Liabilities, the Second Mezzanine Loan Liabilities, the Third
Mezzanine Loan Liabilities, the Fourth Mezzanine Loan Liabilities, the Fifth
Mezzanine Loan Liabilities, the Sixth Mezzanine Loan Liabilities and the
Seventh Mezzanine Loan Liabilities, unless the context otherwise requires, in
which case it shall mean either the First Mezzanine Loan Liabilities, the
Second Mezzanine Loan Liabilities, the Third Mezzanine Loan Liabilities, the
Fourth Mezzanine Loan Liabilities, the Fifth Mezzanine Loan Liabilities, the
Sixth Mezzanine Loan Liabilities, or the Seventh Mezzanine Loan Liabilities,
individually.

 

“Junior Loan Modification” has the meaning provided in Section 8(b) hereof.

 

“Junior Loan Monetary Cure Period” has the meaning provided
in Section 12(b)(i) hereof.

 

“Junior Loan Non-Monetary Cure Period” has the meaning
provided in Section 12(b)(ii) hereof.

 

“Junior Loan Purchase Option Event” has the meaning provided
in Section 14(c) hereof.

 

14

 

“Junior Note” means, collectively, the First Mezzanine Note,
the Second Mezzanine Note, the Third Mezzanine Note, the Fourth Mezzanine Note,
the Fifth Mezzanine Note, the Sixth Mezzanine Note and the Seventh Mezzanine
Note, unless the context otherwise requires, in which case it shall mean either
the First Mezzanine Note, the Second Mezzanine Note, the Third Mezzanine Note,
the Fourth Mezzanine Note, the Fifth Mezzanine Note, the Sixth Mezzanine Note or
the Seventh Mezzanine Note, individually.

 

“Junior Noteholders” shall mean one or more of the First
Mezzanine Noteholders, the Second Mezzanine Noteholders, the Third Mezzanine
Noteholders, the Fourth Mezzanine Noteholders, the Fifth Mezzanine Noteholders,
the Sixth Mezzanine Noteholders and the Seventh Mezzanine Noteholders.

 

“Junior Purchase Notice” has the meaning provided in Section 14(c) hereof.

 

“Loan Pledgee” has the meaning set forth in Section 16(a) hereof.

 

“Mezzanine Lease Notice” has the meaning set forth in Section 15(q) hereof.

 

“Monetary Cure Period” means, with respect to each Junior
Lender, the applicable cure period provided in Section 12(a)(i) for
a monetary default identified in a Senior Loan Default Notice.

 

“Moody’s” means Moody’s Investor Service, Inc., and its
successors in interest.

 

“Mortgage” or “Mortgages” has
the meaning assigned to such term in the Senior Loan Agreement.

 

“New Lease” means a new or replacement ground lease which the
leasehold mortgagee or its nominee or Mezzanine Nominee may enter into with the
ground lessor upon the termination of the Ground Lease.

 

“Non-Monetary Cure Period” means, with respect to each Junior
Lender, the applicable cure period provided in Section 12(a)(ii) for
a non-monetary default identified in a Senior Loan Default Notice.

 

“Notice” has the meaning provided in Section 18
hereof.

 

“OpCo” shall have the meaning set forth in Section 15(q) hereof.

 

“Optioned Junior Lender” has the meaning provided in Section 14(c) hereof.

 

“Optioned Junior Loan” has the meaning provided in Section 14(c) hereof.

 

“Permitted Fund Manager” means any Person that on the date of
determination is not subject to a Proceeding and is either (i) one of the
entities listed on Exhibit L or any other nationally-recognized manager
of investment funds investing in debt or equity interests relating to
commercial real estate, (ii) an entity that is a Qualified Transferee
pursuant to clause (ix)(A), (B), (C), (D) or (G) of the
definition thereof or (iii) any Junior 

 

15

 

Lender
in each case, which are investing through a fund with or has committed capital
of at least $250,000,000.

 

“Permitted Investment Fund” has the meaning set forth in the
definition of Qualified Transferee.

 

“Person” means any individual, sole proprietorship,
corporation, general partnership, limited partnership, limited liability
company or partnership, joint venture, association, joint stock company, bank,
trust, estate unincorporated organization, any federal, state, county or
municipal government (or any agency or political subdivision thereof) endowment
fund or any other form of entity and any fiduciary acting in such capacity on
behalf of any of the foregoing.

 

“Pledge” has the meaning set forth in Section 16(a) hereof.

 

“Pledge Agreement” means, collectively, the First Mezzanine
Pledge Agreement, the Second Mezzanine Pledge Agreement, the Third Mezzanine
Pledge Agreement, the Fourth Mezzanine Pledge Agreement, the Fifth Mezzanine
Pledge Agreement, the Sixth Mezzanine Pledge Agreement and the Seventh
Mezzanine Pledge Agreement, unless the context otherwise requires, in which
case it shall mean either the First Mezzanine Pledge Agreement, the Second
Mezzanine Pledge Agreement, the Third Mezzanine Pledge Agreement, the Fourth
Mezzanine Pledge Agreement or the Fifth Mezzanine Pledge Agreement, the Sixth
Mezzanine Pledge Agreement or the Seventh Mezzanine Pledge Agreement,
individually.

 

“Policies” has the meaning provided in Section 10(f) hereof.

 

“Premises” has the meaning set forth in the Recitals
hereto.

 

“Proceeding” has the meaning set forth in Section 11(d)(i) hereof.

 

“Protective Advances” means all sums advanced for the purpose
of payment of real estate taxes (including special assessments or payments in
lieu of real estate taxes), maintenance costs, insurance premiums, ground rents
or other items (including capital expenses and leasing costs such as (without
limitation) leasing commissions and tenant improvement allowances) reasonably
necessary to protect any of the Premises or the Separate Collateral,
respectively, or any portion thereof (including, but not limited to, all
reasonable attorneys’ fees, costs relating to the entry upon the Premises or
any portion thereof to make repairs and the payment, purchase, contest or
compromise of any encumbrance, charge or lien which in the judgment of Senior
Lender or the applicable Senior Junior Lender appears to be prior or superior
to the Senior Loan Documents or the applicable Senior Junior Loan Documents) or
the Separate Collateral or any portion thereof, respectively, from forfeiture,
casualty, loss or waste or to protect, preserve or defend the lien of the
Senior Loan Documents or any of the Junior Loan Documents, as applicable,
including, with respect to a Junior Loan, amounts advanced by a Junior Lender
to effect a cure in accordance with Section 12 hereof.

 

“Purchase Notice” has the meaning set forth in Section 14(a) hereof.

 

16

 

“Purchase Option Event” has the meaning set forth in Section 14(a) hereof.

 

“Qualified Transferee” means (i) JPMorgan or an
Affiliate of JPMorgan, (ii) CS or an Affiliate of CS, (iii) BofA or
an Affiliate of BofA, (iv) HCP, Inc., a Maryland corporation, or an
Affiliate of HCP, Inc. and (v) one or more of the following:

 

(A)          a real estate
investment trust, bank, saving and loan association, investment bank, insurance
company, trust company, commercial credit corporation, pension plan, pension
fund or pension advisory firm, mutual fund, government entity or plan, provided
that any such Person referred to in this clause (A) satisfies
the Eligibility Requirements;

 

(B)           an investment
company, money management firm or “qualified institutional buyer” within the
meaning of Rule 144A under the Securities Act of 1933, as amended, or an
institutional “accredited investor” within the meaning of Regulation D under
the Securities Act of 1933, as amended, provided that any such Person referred
to in this clause (B) satisfies the Eligibility Requirements;

 

(C)           an institution
substantially similar to any of the foregoing entities described in clause (v)(A),
(v)(B) or (v)(F) that satisfies the Eligibility
Requirements;

 

(D)          any entity Controlled
by, Controlling or under common Control with any of the entities described in clause (v)(A),
(v)(B) or (v)(C) above or clauses (v)(F) or
(iv)(G) below;

 

(E)           a Qualified Trustee
(or in the case of a CDO, a single purpose bankruptcy remote entity which
contemporaneously assigns or pledges its interest in a Junior Loan, or a participation
interest therein (or any portion thereof) to a Qualified Trustee) in connection
with (aa) a securitization of, (bb) the creation of collateralized
debt obligations (“CDO”) secured
by, or (cc) a financing through an “owner trust” of, a Junior Loan or any
interest therein (any of the foregoing, a “Securitization Vehicle”),
provided that (1) one or more classes of securities issued by such
Securitization Vehicle is initially rated at least investment grade by each of
the Rating Agencies which assigned a rating to one or more classes of
securities issued in connection with a Securitization (it being understood that
with respect to any Rating Agency that assigned such a rating to the securities
issued by such Securitization Vehicle, a Rating Agency Confirmation will not be
required in connection with a transfer of the Junior Loan or any interest
therein to such Securitization Vehicle (except that if one or more classes of
securities issued in connection with a Securitization is rated by Moody’s, the
transferee may not rely on this clause (1) with respect to Moody’s);
(2) in the case of a Securitization Vehicle that is not a CDO, the special
servicer of such Securitization Vehicle has the Required Special Servicer
Rating at the time of Transfer and the related transaction documents for such
Securitization Vehicle require that any successor have the Required Special
Servicer Rating (such entity, an “Approved Servicer”)
and such Approved Servicer is required to service and administer such Junior
Loan or any interest therein in accordance with servicing arrangements for the
assets held by the Securitization Vehicle which require that such Approved
Servicer act in accordance 

 

17

 

with
a servicing standard notwithstanding any contrary direction or instruction from
any other Person; or (3) in the case of a Securitization Vehicle that is a
CDO, the CDO Asset Manager and, if applicable, each Intervening Trust Vehicle
that is not administered and managed by a CDO Asset Manager which is a
Qualified Transferee, are each Qualified Transferees under clause (v)(A),
(B), (C), (D), (F) or (G) of this
definition;

 

(F)           an investment fund,
limited liability company, limited partnership or general partnership (a “Permitted Investment Fund”) where a Permitted Fund Manager
acts as the general partner, managing member or fund manager and at least fifty
percent (50%) of the equity interests in such investment vehicle are owned,
directly or indirectly, by one or more of the following:  a Qualified Transferee, an institutional “accredited
investor”, within the meaning of Regulation D promulgated under the Securities
Act of 1933, as amended, and/or a “qualified institutional buyer” or both
within the meaning of Rule 144A promulgated under the Securities Exchange
Act of 1934, as amended, provided such institutional “accredited investors” or “qualified
institutional buyers” that are used to satisfy the 50% test set forth above in
this clause (F) satisfy the financial tests in clause (i) of
the definition of Eligibility Requirements; or

 

(G)           any Person for which
the Rating Agencies have issued a Rating Agency Confirmation with respect to
such Transfer.

 

“Qualified Trustee” means (i) a corporation, national
bank, national banking association or a trust company, organized and doing
business under the laws of any state or the United States of America,
authorized under such laws to exercise corporate trust powers and to accept the
trust conferred, having a combined capital and surplus of at least $100,000,000
and subject to supervision or examination by federal or state authority,
(ii) an institution insured by the Federal Deposit Insurance Corporation
or (iii) an institution whose long-term senior unsecured debt is rated
either of the then in effect top two (2) rating categories of S&P and
either Fitch or Moody’s (provided, however, if the Senior Loan
has been securitized, the rating requirement of any agency not a Rating Agency
will be disregarded).

 

“Rated Final Distribution Date” has the meaning set forth in
the pooling and servicing agreement pursuant to which the Senior Loan is
Securitized and serviced until such time that the Senior Loan is no longer
subject to such pooling and servicing agreement.

 

“Rating Agencies” shall mean, prior to the final
Securitization of the Senior Loan, collectively, S&P, Moody’s and Fitch,
and any other nationally-recognized statistical rating agency which has been
designated by Senior Lender and, after the Securitization of the Senior Loan,
shall mean any of the foregoing that have rated any of the Certificates.

 

“Rating Agency Confirmation” means a written affirmation from
each of the Rating Agencies that the credit rating of the Certificates assigned
by such Rating Agency immediately prior to the occurrence of the event with
respect to which such Rating Agency Confirmation is sought will not be
qualified, downgraded or withdrawn as a result of the occurrence of such
event.  In the event that no Certificates
are outstanding or the Senior Loan 

 

18

 

is
not part of a Securitization, any action that would otherwise require a Rating
Agency Confirmation shall instead require the consent of Senior Lender, which
consent shall not be unreasonably withheld or delayed.  All fees and expenses of the Rating Agencies
incurred in connection with any Rating Agency Confirmation required pursuant to
this Agreement as the result of a request or action of a Junior Lender shall be
paid by such Junior Lender.

 

“Redirection Notice” has the meaning set forth in Section 16(a) hereof.

 

“Repo Agreement” has the meaning set forth in Section 16(a) hereof.

 

“Required Special Servicer Rating” means a special servicer
that (i) has a rating of “CSS1” in the case of Fitch, (ii) is on
S&P’s Select Servicer List as a US Commercial Mortgage Special Servicer in
the case of S&P and (iii) in the case of Moody’s, such special
servicer is acting as special servicer for a loan in a commercial mortgage loan
securitization that was rated by Moody’s within the twelve (12) month period
prior to the date of determination and Moody’s has not downgraded or withdrawn
the then-current rating on any class of commercial mortgage securities or
placed any class of commercial mortgage securities on watch citing the
continuation of such special servicer as special servicer of such commercial
mortgage securities.  The requirement of
any agency not a Rating Agency shall be disregarded.

 

“Resized Components” has the meaning set forth in Section 15(m) hereof.

 

“Resizing Date” has the meaning set forth in Section 15(m) hereof.

 

“Resizing Notice” has the meaning set forth in Section 15(m) hereof.

 

“S&P” means Standard & Poor’s Ratings Services,
a division of The McGraw-Hill Companies, Inc., and its successors in
interest.

 

“Second Mezzanine Borrower” has the meaning set forth on Schedule 1
attached hereto.

 

“Second Mezzanine Cash Management Agreement” means any cash
management agreement executed in connection with, or the cash management
provisions of, the Second Mezzanine Loan Documents.

 

“Second Mezzanine Lender” has the meaning set forth in the Recitals
hereto.

 

“Second Mezzanine Loan” has the meaning set forth in the Recitals
hereto.

 

“Second Mezzanine Loan Agreement” has the meaning set forth
in the Recitals hereto.

 

“Second Mezzanine Loan Documents” has the meaning set forth
in the Recitals hereto.

 

“Second Mezzanine Loan Liabilities” means, collectively, all
of the indebtedness, liabilities and obligations of Second Mezzanine Borrower
under any Second

 

19

 

Mezzanine Loan Document, including, without
limitation (i) the principal amount of, and accrued interest on
(including, without limitation, any interest which accrues after the
commencement of any case, proceeding or other action relating to the bankruptcy,
insolvency or reorganization of Second Mezzanine Borrower, whether or not such
interest would be allowed in such case, proceeding or action), the Second
Mezzanine Loan, (ii) all other indebtedness, obligations and liabilities
of Second Mezzanine Borrower to Second Mezzanine Lender now existing or
hereafter incurred or created under the Second Mezzanine Loan Documents, and
(iii) all other indebtedness, obligations and liabilities of Second
Mezzanine Borrower to Second Mezzanine Lender now existing or hereafter
incurred, created and arising from or relating to the Second Mezzanine Loan,
including, without limitation, any late charges, default interest, prepayment
fees or premiums (including spread maintenance and yield maintenance premiums),
exit fees, advances and post-petition interest.

 

“Second Mezzanine Note” has the meaning set forth in the Recitals
hereto.

 

“Second  Mezzanine Noteholders”
has the meaning provided in the Recitals hereto.

 

“Second Mezzanine Pledge Agreement” has the meaning set forth
in the Recitals hereto.

 

“Securitization” has the meaning set forth in the Senior Loan
Agreement.

 

“Securitization Vehicle” has the meaning set forth in the
definition of the term “Qualified Transferee”.

 

“Senior  Borrower” has
the meaning set forth on Schedule 1 attached hereto.

 

“Senior Junior Borrowers” means (i) with respect to the
First Mezzanine Loan, none of the other Junior Borrowers; (ii) with
respect to the Second Mezzanine Loan, the First Mezzanine Borrower;
(iii) with respect to the Third Mezzanine Loan, the First Mezzanine
Borrower and the Second Mezzanine Borrower; (iv) with respect to the
Fourth Mezzanine Loan, the First Mezzanine Borrower, the Second Mezzanine
Borrower, and the Third Mezzanine Borrower; (v) with respect to the Fifth
Mezzanine Loan, the First Mezzanine Borrower, the Second Mezzanine Borrower,
the Third Mezzanine Borrower and the Fourth Mezzanine Borrower, (vi) with
respect to the Sixth Mezzanine Loan, the First Mezzanine Borrower, the Second
Mezzanine Borrower, the Third Mezzanine Borrower, the Fourth Mezzanine Borrower
and the Fifth Mezzanine Borrower and (vii) with respect to the Seventh
Mezzanine Loan, the First Mezzanine Borrower, the Second Mezzanine Borrower,
the Third Mezzanine Borrower, the Fourth Mezzanine Borrower, the Fifth
Mezzanine Borrower and the Sixth Mezzanine Borrower.

 

“Senior Junior Lenders” means (i) with respect to the
First Mezzanine Loan, none of the other Junior Lenders; (ii) with respect
to the Second Mezzanine Loan, First Mezzanine Lender; (iii) with respect
to the Third Mezzanine Loan, the First Mezzanine Lender and the Second
Mezzanine Lender; (iv) with respect to the Fourth Mezzanine Loan, the
First Mezzanine Lender, the Second Mezzanine Lender, and the Third Mezzanine
Lender; (v) with respect to the Fifth Mezzanine Loan, the First Mezzanine
Lender, the Second Mezzanine 

 

20

 

Lender, the Third Mezzanine Lender and the
Fourth Mezzanine Lender, (vi) with respect to the Sixth Mezzanine Loan,
the First Mezzanine Lender, the Second Mezzanine Lender, the Third Mezzanine
Lender, the Fourth Mezzanine Lender and the Fifth Mezzanine Lender and (vii) with
respect to the Seventh Mezzanine Loan, the First Mezzanine Lender, the Second
Mezzanine Lender, the Third Mezzanine Lender, the Fourth Mezzanine Lender, the
Fifth Mezzanine Lender and the Sixth Mezzanine Lender.  As the context requires, Senior Junior
Lenders shall have the following order of priority:  (i) first, the First Mezzanine Lender;
(ii) second, the Second Mezzanine Lender; (iii) third, the Third
Mezzanine Lender; (iv) fourth, the Fourth Mezzanine Lender;
(v) fifth, the Fifth Mezzanine Lender, (vi) sixth, the Sixth
Mezzanine Lender and (vii) seventh, the Seventh Mezzanine Lender.

 

“Senior Junior Loan Agreements” means (i) with respect
to the First Mezzanine Loan, none of the other Junior Loan Agreements;
(ii) with respect to the Second Mezzanine Loan, the First Mezzanine Loan
Agreement; (iii) with respect to the Third Mezzanine Loan, the First Mezzanine
Loan Agreement and the Second Mezzanine Loan Agreement; (iv) with respect
to the Fourth Mezzanine Loan, the First Mezzanine Loan Agreement, the Second
Mezzanine Loan Agreement and the Third Mezzanine Loan Agreement; (v) with
respect to the Fifth Mezzanine Loan, the First Mezzanine Loan Agreement, the
Second Mezzanine Loan Agreement, the Third Mezzanine Loan Agreement and the
Fourth Mezzanine Loan Agreement, (vi) with respect to the Sixth Mezzanine
Loan, the First Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement,
the Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan Agreement and the
Fifth Mezzanine Loan Agreement, (vii) with respect to the Seventh
Mezzanine Loan, the First Mezzanine Loan Agreement, the Second Mezzanine Loan
Agreement, the Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan
Agreement, the Fifth Mezzanine Loan Agreement and the Sixth Mezzanine Loan
Agreement.  As the context requires, the
Senior Junior Loan Agreements shall have the following order of priority:  (i) first, the First Mezzanine Loan
Agreement; (ii) second, the Second Mezzanine Loan Agreement;
(iii) third, the Third Mezzanine Loan Agreement; (iv) fourth, the
Fourth Mezzanine Loan Agreement; (v) fifth, the Fifth Mezzanine Loan
Agreement, (vi) sixth, the Sixth Mezzanine Loan Agreement and (vii) seventh,
the Seventh Mezzanine Loan Agreement.

 

“Senior Junior Loan Cash Management Agreements” means
(i) with respect to the First Mezzanine Loan, none of the other Junior
Loan Cash Management Agreements; (ii) with respect to the Second Mezzanine
Loan, the First Mezzanine Cash Management Agreement; (iii) with respect to
the Third Mezzanine Loan, the First Mezzanine Cash Management Agreement and the
Second Mezzanine Cash Management Agreement; (iv) with respect to the
Fourth Mezzanine Loan, the First Mezzanine Cash Management Agreement, the
Second Mezzanine Cash Management Agreement and the Third Mezzanine Cash
Management Agreement; (v) with respect to the Fifth Mezzanine Loan, the
First Mezzanine Cash Management Agreement, the Second Mezzanine Cash Management
Agreement, the Third Mezzanine Cash Management Agreement and the Fourth
Mezzanine Cash Management Agreement; (vi) with respect to the Sixth
Mezzanine Loan, the First Mezzanine Cash Management Agreement, the Second
Mezzanine Cash Management Agreement, the Third Mezzanine Cash Management
Agreement, the Fourth Mezzanine Cash Management Agreement and the Fifth
Mezzanine Cash Management Agreement; (vii) with respect to the Seventh
Mezzanine Loan, the First Mezzanine Cash Management Agreement, the Second 

 

21

 

Mezzanine Cash Management Agreement, the
Third Mezzanine Cash Management Agreement, the Fourth Mezzanine Cash Management
Agreement the Fifth Mezzanine Cash Management Agreement and the Sixth Mezzanine
Cash Management Agreement.  As the
context requires, the Senior Junior Loan Cash Management Agreements shall have
the following order of priority:  (i) first,
the First Mezzanine Cash Management Agreement; (ii) second, the Second Mezzanine
Cash Management Agreement; (iii) third, the Third Mezzanine Cash
Management Agreement; (iv) fourth, the Fourth Mezzanine Cash Management
Agreement; (v) fifth, the Fifth Mezzanine Cash Management Agreement; (vi) sixth,
the Sixth Mezzanine Cash Management Agreement and (vii) seventh, the
Seventh Mezzanine Cash Management Agreement.

 

“Senior Junior Loan Documents” means (i) with respect to
the First Mezzanine Loan, none of the other Junior Loan Documents;
(ii) with respect to the Second Mezzanine Loan, the First Mezzanine Loan
Documents; (iii) with respect to the Third Mezzanine Loan, the First
Mezzanine Loan Documents and the Second Mezzanine Loan Documents;
(iv) with respect to the Fourth Mezzanine Loan, the First Mezzanine Loan
Documents, the Second Mezzanine Loan Documents and the Third Mezzanine Loan
Documents; (v) with respect to the Fifth Mezzanine Loan, the First
Mezzanine Loan Documents, the Second Mezzanine Loan Documents, the Third
Mezzanine Loan Documents and the Fourth Mezzanine Loan Documents, (vi) with
respect to the Sixth Mezzanine Loan, the First Mezzanine Loan Documents, the
Second Mezzanine Loan Documents, the Third Mezzanine Loan Documents, the Fourth
Mezzanine Loan Documents and the Fifth Mezzanine Loan Documents and (vii) with
respect to the Seventh Mezzanine Loan, the First Mezzanine Loan Documents, the
Second Mezzanine Loan Documents, the Third Mezzanine Loan Documents, the Fourth
Mezzanine Loan Documents, the Fifth Mezzanine Loan Documents and the Sixth
Mezzanine Loan Documents.  As the context
requires, the Senior Junior Loan Documents shall have the following order of
priority:  (i) first, the First
Mezzanine Loan Documents; (ii) second, the Second Mezzanine Loan
Documents; (iii) third, the Third Mezzanine Loan Documents; (iv) fourth,
the Fourth Mezzanine Loan Documents; (v) fifth, the Fifth Mezzanine Loan
Documents; (vi) sixth, the Sixth Mezzanine Loan Documents and (vii) seventh,
the Seventh Mezzanine Loan Documents.

 

“Senior Junior Loan Liabilities” means (i) with respect
to the First Mezzanine Loan, none of the other Junior Loan Liabilities;
(ii) with respect to the Second Mezzanine Loan, the First Mezzanine Loan
Liabilities; (iii) with respect to the Third Mezzanine Loan, the First
Mezzanine Loan Liabilities and the Second Mezzanine Loan Liabilities;
(iv) with respect to the Fourth Mezzanine Loan, the First Mezzanine Loan
Liabilities, the Second Mezzanine Loan Liabilities, and the Third Mezzanine
Loan Liabilities; (v) with respect to the Fifth Mezzanine Loan, the First
Mezzanine Loan Liabilities, the Second Mezzanine Loan Liabilities, the Third
Mezzanine Loan Liabilities and the Fourth Mezzanine Loan Liabilities, (vi) with
respect to the Sixth Mezzanine Loan, the First Mezzanine Loan Liabilities, the
Second Mezzanine Loan Liabilities, the Third Mezzanine Loan Liabilities, the
Fourth Mezzanine Loan Liabilities and the Fifth Mezzanine Loan Liabilities and (vii) with
respect to the Seventh Mezzanine Loan, the First Mezzanine Loan Liabilities,
the Second Mezzanine Loan Liabilities, the Third Mezzanine Loan Liabilities,
the Fourth Mezzanine Loan Liabilities, the Fifth Mezzanine Loan Liabilities and
the Sixth Mezzanine Loan Liabilities.  As
the context requires, the Senior Junior Loan Liabilities shall have the
following order of priority: 
(i) first, 

 

22

 

the First Mezzanine Loan Liabilities;
(ii) second, the Second Mezzanine Loan Liabilities; (iii) third, the
Third Mezzanine Loan Liabilities; (iv) fourth, the Fourth Mezzanine Loan
Liabilities; (v) fifth, the Fifth Mezzanine Loan Liabilities; (vi) sixth,
the Sixth Mezzanine Loan Liabilities and (vii) seventh, the Seventh
Mezzanine Loan Liabilities.

 

“Senior Junior Loan Modification” has the meaning provided in
Section 8(c) hereof.

 

“Senior Junior Loan Purchase Price” has the meaning provided
in Section 14(a).

 

“Senior Junior Loans” means (i) with respect to the
First Mezzanine Loan, none of the other Junior Loans; (ii) with respect to
the Second Mezzanine Loan, First Mezzanine Loan; (iii) with respect to the
Third Mezzanine Loan, the First Mezzanine Loan and the Second Mezzanine Loan;
(iv) with respect to the Fourth Mezzanine Loan, the First Mezzanine Loan,
the Second Mezzanine Loan and the Third Mezzanine Loan; (v) with respect to
the Fifth Mezzanine Loan, the First Mezzanine Loan, the Second Mezzanine Loan,
the Third Mezzanine Loan and the Fourth Mezzanine Loan; (vi) with respect
to the Sixth Mezzanine Loan, the First Mezzanine Loan, the Second Mezzanine
Loan, the Third Mezzanine Loan, the Fourth Mezzanine Loan and the Fifth
Mezzanine Loan and (vii) with respect to the Seventh Mezzanine Loan, the
First Mezzanine Loan, the Second Mezzanine Loan, the Third Mezzanine Loan, the
Fourth Mezzanine Loan, the Fifth Mezzanine Loan and the Sixth Mezzanine
Loan.  As the context requires, Senior
Junior Loans shall have the following order of priority:  (i) first, First Mezzanine Loan;
(ii) second, Second Mezzanine Loan; (iii) third, Third Mezzanine
Loan; (iv) fourth, Fourth Mezzanine Loan; (v) fifth, the Fifth
Mezzanine Loan, (vi) sixth, the Sixth Mezzanine Loan and (vii) seventh,
the Seventh Mezzanine Loan.

 

“Senior Lender” has the meaning set forth in the Recitals
hereto, and if the Senior Loan has been split into two (2) or more loans
in connection with the removal of an Individual Property or Properties from the
Senior Loan in accordance with Section 15(n) hereof, the
holder of each such split loan; provided notice thereof has been given
to each Junior Lender and provided that each such holder shall have assumed the
obligations of Senior Lender hereunder in writing.

 

“Senior Loan” has the meaning set forth in the Recitals
hereto.

 

“Senior Loan Agreement” has the meaning set forth in the Recitals
hereto.

 

“Senior Loan Cash Management Agreement” means any cash
management agreement or agreements executed in connection with, or cash
management provisions of, the Senior Loan Documents.

 

“Senior Loan Default Notice” has the meaning set forth in Section 12(a) hereof.

 

“Senior Loan Documents” has the meaning set forth in the Recitals
hereto.

 

23

 

“Senior Loan Liabilities” shall mean, collectively, all of
the indebtedness, liabilities and obligations of Borrower under any Senior Loan
Document, including, without limitation (i) the principal amount of, and
accrued interest on (including, without limitation, any interest which accrues
after the commencement of any case, proceeding or other action relating to the
bankruptcy, insolvency or reorganization of Borrower, whether or not such
interest would be allowed in such case, proceeding or action), the Senior Loan,
(ii) all other indebtedness, obligations and liabilities of Borrower to
Senior Lender now existing or hereafter incurred or created under the Senior
Loan Documents, and (iii) all other indebtedness, obligations and
liabilities of Borrower to Senior Lender now existing or hereafter incurred,
created and arising from or relating to the Senior Loan, including, without
limitation, any late charges, default interest, prepayment fees or premiums
(including spread maintenance and yield maintenance premiums), exit fees,
advances and post-petition interest.

 

“Senior Loan Modification” has the meaning set forth in Section 8(a) hereof.

 

“Senior Loan Purchase Price” has the meaning set forth in Section 14(a) hereof.

 

“Senior Note” has the meaning set forth in the Recitals
hereto.

 

“Senior Noteholders” has the meaning provided in the Recitals
hereto.

 

“Separate Collateral” means, with respect to each Junior
Loan, collectively, (i) the Equity Collateral, (ii) the accounts (and
monies therein from time to time) established pursuant to each of the Junior
Loan Cash Management Agreements, and (iii) any other collateral or
benefits, including guarantees or interest rate cap or hedging agreements,
given as security for each of the Junior Loans pursuant to the Junior Loan
Documents, in each case not constituting security for the Senior Loan or any
Senior Junior Loans.

 

“Separate Collateral Enforcement Action” means any action or
proceeding or other exercise of a Junior Lender’s rights and remedies under its
respective Junior Loan Documents, at law or in equity, or otherwise, in order
to realize upon any of its respective Separate Collateral (including, without
limitation, an assignment in lieu of foreclosure or other negotiated settlement
in lieu of any such enforcement action).

 

“Seventh Mezzanine Borrower” has the meaning set forth on Schedule 1
attached hereto.

 

“Seventh Mezzanine Cash Management Agreement” means any cash
management agreement executed in connection with, or the cash management
provisions of, the Seventh Mezzanine Loan Documents.

 

“Seventh Mezzanine Lender” has the meaning set forth in the Recitals
hereto.

 

“Seventh Mezzanine Loan” has the meaning set forth in the Recitals
hereto.

 

“Seventh Mezzanine Loan Agreement” has the meaning set forth
in the Recitals hereto.

 

24

 

“Seventh Mezzanine Loan Documents” has the meaning set forth
in the Recitals hereto.

 

“Seventh Mezzanine Loan Liabilities” means, collectively, all
of the indebtedness, liabilities and obligations of Seventh Mezzanine Borrower
under any Seventh Mezzanine Loan Document, including, without limitation
(i) the principal amount of, and accrued interest on (including, without
limitation, any interest which accrues after the commencement of any case,
proceeding or other action relating to the bankruptcy, insolvency or
reorganization of Seventh Mezzanine Borrower, whether or not such interest
would be allowed in such case, proceeding or action), the Seventh Mezzanine
Loan, (ii) all other indebtedness, obligations and liabilities of Seventh
Mezzanine Borrower to Seventh Mezzanine Lender now existing or hereafter
incurred or created under the Seventh Mezzanine Loan Documents, and
(iii) all other indebtedness, obligations and liabilities of Seventh
Mezzanine Borrower to Seventh Mezzanine Lender now existing or hereafter
incurred, created and arising from or relating to the Seventh Mezzanine Loan,
including, without limitation, any late charges, default interest, prepayment
fees or premiums (including spread maintenance and yield maintenance premiums),
exit fees, advances and post-petition interest.

 

“Seventh Mezzanine Note” has the meaning set forth in the Recitals
hereto.

 

“Seventh  Mezzanine Noteholders”
has the meaning provided in the Recitals hereto.

 

“Seventh Mezzanine Pledge Agreement” has the meaning set
forth in the Recitals hereto.

 

“Sixth Mezzanine Borrower” has the meaning set forth on Schedule 1
attached hereto.

 

“Sixth Mezzanine Cash Management Agreement” means any cash
management agreement executed in connection with, or the cash management
provisions of, the Sixth Mezzanine Loan Documents.

 

“Sixth Mezzanine Lender” has the meaning set forth in the Recitals
hereto.

 

“Sixth Mezzanine Loan” has the meaning set forth in the Recitals
hereto.

 

“Sixth Mezzanine Loan Agreement” has the meaning set forth in
the Recitals hereto.

 

“Sixth Mezzanine Loan Documents” has the meaning set forth in
the Recitals hereto.

 

“Sixth Mezzanine Loan Liabilities” means, collectively, all
of the indebtedness, liabilities and obligations of Sixth Mezzanine Borrower
under any Sixth Mezzanine Loan Document, including, without limitation
(i) the principal amount of, and accrued interest on (including, without
limitation, any interest which accrues after the commencement of any case,
proceeding or other action relating to the bankruptcy, insolvency 

 

25

 

or reorganization of Sixth Mezzanine
Borrower, whether or not such interest would be allowed in such case,
proceeding or action), the Sixth Mezzanine Loan, (ii) all other
indebtedness, obligations and liabilities of Sixth Mezzanine Borrower to Sixth
Mezzanine Lender now existing or hereafter incurred or created under the Sixth
Mezzanine Loan Documents, and (iii) all other indebtedness, obligations
and liabilities of Sixth Mezzanine Borrower to Sixth Mezzanine Lender now
existing or hereafter incurred, created and arising from or relating to the Sixth
Mezzanine Loan, including, without limitation, any late charges, default
interest, prepayment fees or premiums (including spread maintenance and yield
maintenance premiums), exit fees, advances and post-petition interest.

 

“Sixth Mezzanine Note” has the meaning set forth in the Recitals
hereto.

 

“Sixth  Mezzanine Noteholders”
has the meaning provided in the Recitals hereto.

 

“Sixth Mezzanine Pledge Agreement” has the meaning set forth
in the Recitals hereto.

 

“South Carolina Management Agreement” shall mean, collectively
and individually as the context shall require, those certain Management
Agreements, each dated as of the closing date of the Senior Loan, entered into
with respect to each Individual Property that is located in the State of South
Carolina, between the operator of a Property located in South Carolina and HCR
III Healthcare, LLC, a Delaware limited liability company, as the master
tenant.

 

“SPE Constituent Entity” means any entity required to be a
single purpose entity pursuant to the terms of the Senior Loan Documents (but
excluding any Junior Borrower).

 

“Subordinate Junior Borrowers” means (i) with respect to
the First Mezzanine Loan, the Second Mezzanine Borrower, the Third Mezzanine
Borrower, the Fourth Mezzanine Borrower, the Fifth Mezzanine Borrower, the
Sixth Mezzanine Borrower and the Seventh Mezzanine Borrower; (ii) with
respect to the Second Mezzanine Loan, the Third Mezzanine Borrower, the Fourth
Mezzanine Borrower, the Fifth Mezzanine Borrower, the Sixth Mezzanine Borrower
and the Seventh Mezzanine Borrower; (iii) with respect to the Third
Mezzanine Loan, the Fourth Mezzanine Borrower, the Fifth Mezzanine Borrower,
the Sixth Mezzanine Borrower and the Seventh Mezzanine Borrower; (iv) with
respect to the Fourth Mezzanine Loan, the Fifth Mezzanine Borrower, the Sixth
Mezzanine Borrower and the Seventh Mezzanine Borrower; (v) with respect to
the Fifth Mezzanine Loan, the Sixth Mezzanine Borrower and the Seventh
Mezzanine Borrower; (vi) with respect to the Sixth Mezzanine Loan, the
Seventh Mezzanine Borrower and (vii) with respect to the Seventh Mezzanine
Loan, none of the other Junior Borrowers. 
As the context requires, the Subordinate Junior Borrowers shall have the
following order of priority: 
(i) first, the First Mezzanine Borrower; (ii) second, the
Second Mezzanine Borrower; (iii) third, the Third Mezzanine Borrower;
(iv) fourth, the Fourth Mezzanine Borrower; (v) fifth, the Fifth
Mezzanine Borrower; (vi) sixth, the Sixth Mezzanine Borrower and (vii) seventh,
the Seventh Mezzanine Borrower.

 

26

 

“Subordinate Junior Lenders” means (i) with respect to
the First Mezzanine Loan, the Second Mezzanine Lender, the Third Mezzanine
Lender, the Fourth Mezzanine Lender, the Fifth Mezzanine Lender, the Sixth
Mezzanine Lender and the Seventh Mezzanine Lender; (ii) with respect to
the Second Mezzanine Loan, the Third Mezzanine Lender, the Fourth Mezzanine
Lender, the Fifth Mezzanine Lender, the Sixth Mezzanine Lender and the Seventh
Mezzanine Lender; (iii) with respect to the Third Mezzanine Loan, the
Fourth Mezzanine Lender, the Fifth Mezzanine Lender, the Sixth Mezzanine Lender
and the Seventh Mezzanine Lender; (iv) with respect to the Fourth
Mezzanine Loan, the Fifth Mezzanine Lender the Sixth Mezzanine Lender and the
Seventh Mezzanine Lender; (v) with respect to the Fifth Mezzanine Loan,
the Sixth Mezzanine Lender and the Seventh Mezzanine Lender; (vi) with
respect to the Sixth Mezzanine Loan, the Seventh Mezzanine Lender and (vii) with
respect to the Seventh Mezzanine Loan, none of the other Junior Lenders.  As the context requires, the Subordinate
Junior Lenders shall have the following order of priority:  (i) first, the First Mezzanine Lender;
(ii) second, the Second Mezzanine Lender; (iii) third, the Third
Mezzanine Lender; (iv) fourth, the Fourth Mezzanine Lender;
(v) fifth, the Fifth Mezzanine Lender; (vi) sixth, the Sixth
Mezzanine Lender and (vii) seventh, the Seventh Mezzanine Lender.

 

“Subordinate Junior Loan Agreements” means (i) with
respect to the First Mezzanine Loan, the Second Mezzanine Loan Agreement, the
Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan Agreement, the Fifth
Mezzanine Loan Agreement, the Sixth Mezzanine Loan Agreement and the Seventh
Mezzanine Loan Agreement; (ii) with respect to the Second Mezzanine Loan,
the Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan Agreement, the
Fifth Mezzanine Loan Agreement, the Sixth Mezzanine Loan Agreement and the
Seventh Mezzanine Loan Agreement; (iii) with respect to the Third
Mezzanine Loan, the Fourth Mezzanine Loan Agreement, the Fifth Mezzanine Loan
Agreement, the Sixth Mezzanine Loan Agreement and the Seventh Mezzanine Loan
Agreement; (iv) with respect to the Fourth Mezzanine Loan, the Fifth
Mezzanine Loan Agreement, the Sixth Mezzanine Loan Agreement and the Seventh
Mezzanine Loan Agreement; (v) with respect to the Fifth Mezzanine Loan,
the Sixth Mezzanine Loan Agreement and the Seventh Mezzanine Loan Agreement; (vi) with
respect to the Sixth Mezzanine Loan, the Seventh Mezzanine Loan Agreement and (vii) with
respect to the Seventh Mezzanine Loan, none of the other Junior Loan
Agreements.  As the context requires, the
Subordinate Junior Loan Agreements shall have the following order of priority:  (i) first, the First Mezzanine Loan
Agreement; (ii) second, the Second Mezzanine Loan Agreement;
(iii) third, the Third Mezzanine Loan Agreement; (iv) fourth, the
Fourth Mezzanine Loan Agreement; (v) fifth, the Fifth Mezzanine Loan
Agreement, (vi) sixth, the Sixth Mezzanine Loan Agreement and (vii) seventh,
the Seventh Mezzanine Loan Agreement.

 

“Subordinate Junior Loan Cash Management Agreements” means
(i) with respect to the First Mezzanine Loan, the Second Mezzanine Cash
Management Agreement, the Third Mezzanine Cash Management Agreement, the Fourth
Mezzanine Cash Management Agreement the Fifth Mezzanine Cash Management
Agreement, the Sixth Mezzanine Cash Management Agreement and the Seventh
Mezzanine Cash Management Agreement; (ii) with respect to the Second
Mezzanine Loan, the Third Mezzanine Cash Management Agreement, the Fourth
Mezzanine Cash Management Agreement, the Fifth Mezzanine Cash Management
Agreement, the Sixth Mezzanine Cash Management Agreement and the Seventh
Mezzanine 

 

27

 

Cash Management Agreement; (iii) with
respect to the Third Mezzanine Loan, the Fourth Mezzanine Cash Management
Agreement, the Fifth Mezzanine Cash Management Agreement, the Sixth Mezzanine
Cash Management Agreement and the Seventh Mezzanine Cash Management Agreement;
(iv) with respect to the Fourth Mezzanine Loan, the Fifth Mezzanine Cash
Management Agreement, the Sixth Mezzanine Cash Management Agreement and the
Seventh Mezzanine Cash Management Agreement; (v) with respect to the Fifth
Mezzanine Loan, the Sixth Mezzanine Cash Management Agreement and the Seventh
Mezzanine Cash Management Agreement; (vi) with respect to the Sixth
Mezzanine Loan, the Seventh Mezzanine Cash Management Agreement and (vii) with
respect to the Seventh Mezzanine Loan, none of the other Junior Loan Cash
Management Agreements.  As the context
requires, the Subordinate Junior Loan Cash Management Agreements shall have the
following order of priority: 
(i) first, the First Mezzanine Cash Management Agreement;
(ii) second, the Second Mezzanine Cash Management Agreement;
(iii) third, the Third Mezzanine Cash Management Agreement;
(iv) fourth, the Fourth Mezzanine Cash Management Agreement,
(v) fifth, the Fifth Mezzanine Cash Management Agreement; (vi) sixth,
the Sixth Mezzanine Cash Management Agreement and (vii) seventh, the
Seventh Mezzanine Cash Management Agreement.

 

“Subordinate Junior Loan Documents” means (i) with
respect to the First Mezzanine Loan, the Second Mezzanine Loan Documents, the
Third Mezzanine Loan Documents, the Fourth Mezzanine Loan Documents, the Fifth
Mezzanine Loan Documents, the Sixth Mezzanine Loan Documents and the Seventh
Mezzanine Loan Documents; (ii) with respect to the Second Mezzanine Loan,
the Third Mezzanine Loan Documents, the Fourth Mezzanine Loan Documents, the
Fifth Mezzanine Loan Documents, the Sixth Mezzanine Loan Documents and the
Seventh Mezzanine Loan Documents; (iii) with respect to the Third
Mezzanine Loan, the Fourth Mezzanine Loan Documents, the Fifth Mezzanine Loan
Documents, the Sixth Mezzanine Loan Documents and the Seventh Mezzanine Loan
Documents; (iv) with respect to the Fourth Mezzanine Loan, the Fifth
Mezzanine Loan Documents, the Sixth Mezzanine Loan Documents and the Seventh
Mezzanine Loan Documents; (v) with respect to the Fifth Mezzanine Loan,
the Sixth Mezzanine Loan Documents and the Seventh Mezzanine Loan Documents and
(vi) with respect to the Sixth Mezzanine Loan, the Seventh Mezzanine Loan
Documents; (vii) with respect to the Seventh Mezzanine Loan, none of the
other Junior Loan Documents.  As the
context requires, the Subordinate Junior Loan Documents shall have the
following order of priority: 
(i) first, the First Mezzanine Loan Documents; (ii) second,
the Second Mezzanine Loan Documents; (iii) third, the Third Mezzanine Loan
Documents; (iv) fourth, the Fourth Mezzanine Loan Documents;
(v) fifth, the Fifth Mezzanine Loan Documents; (vi) sixth, the Sixth
Mezzanine Loan Documents and (vii) seventh, the Seventh Mezzanine Loan
Documents.

 

“Subordinate Junior Loans” means (i) with respect to the
First Mezzanine Loan, the Second Mezzanine Loan, the Third Mezzanine Loan, the
Fourth Mezzanine Loan, the Fifth Mezzanine Loan, the Sixth Mezzanine Loan and
the Seventh Mezzanine Loan; (ii) with respect to the Second Mezzanine
Loan, the Third Mezzanine Loan, the Fourth Mezzanine Loan, the Fifth Mezzanine
Loan, the Sixth Mezzanine Loan and the Seventh Mezzanine Loan; (iii) with
respect to the Third Mezzanine Loan, the Fourth Mezzanine Loan, the Fifth
Mezzanine Loan, the Sixth Mezzanine Loan and the Seventh Mezzanine Loan;
(iv) with respect to the Fourth Mezzanine Loan, the Fifth Mezzanine Loan,
the Sixth 

 

28

 

Mezzanine Loan and the Seventh Mezzanine
Loan; (v) with respect to the Fifth Mezzanine Loan, the Sixth Mezzanine
Loan and the Seventh Mezzanine Loan; (vi) with respect to the Sixth
Mezzanine Loan, the Seventh Mezzanine Loan and (vii) with respect to the
Seventh Mezzanine Loan, none of the other Junior Loans.  As the context requires, the Subordinate
Junior Loans shall have the following order of priority:  (i) first, the First Mezzanine Loan;
(ii) second, the Second Mezzanine Loan; (iii) third, the Third
Mezzanine Loan; (iv) fourth, the Fourth Mezzanine Loan; (v) fifth,
the Fifth Mezzanine Loan; (vi) sixth, the Sixth Mezzanine Loan and (vii) seventh,
the Seventh Mezzanine Loan.

 

“Third Party Agreement” has the meaning set forth in Section 6(a) hereof.

 

“Third Mezzanine Borrower” has the meaning set forth on Schedule 1
attached hereto.

 

“Third Mezzanine Cash Management Agreement” means any cash
management agreement executed in connection with, or the cash management
provisions of, the Third  Mezzanine Loan
Documents.

 

“Third Mezzanine Lender” has the meaning set forth in the Recitals
hereto.

 

“Third Mezzanine Loan” has the meaning set forth in the Recitals
hereto.

 

“Third Mezzanine Loan Agreement” has the meaning set forth in
the Recitals hereto.

 

“Third Mezzanine Loan Documents” has the meaning set forth in
the Recitals hereto.

 

“Third Mezzanine Loan Liabilities” means, collectively, all
of the indebtedness, liabilities and obligations of Fourth Mezzanine Borrower
under any Third  Mezzanine Loan Document,
including, without limitation (i) the principal amount of, and accrued
interest on (including, without limitation, any interest which accrues after
the commencement of any case, proceeding or other action relating to the
bankruptcy, insolvency or reorganization of Third  Mezzanine
Borrower, whether or not such interest would be allowed in such case,
proceeding or action), the Third  Mezzanine
Loan, (ii) all other indebtedness, obligations and liabilities of Third  Mezzanine Borrower to Third  Mezzanine
Lender now existing or hereafter incurred or created under the Third  Mezzanine Loan Documents, and (iii) all other
indebtedness, obligations and liabilities of Third  Mezzanine
Borrower to Third  Mezzanine Lender now existing or
hereafter incurred, created and arising from or relating to the Third  Mezzanine Loan, including, without limitation, any late charges,
default interest, prepayment fees or premiums (including spread maintenance and
yield maintenance premiums), exit fees, advances and post-petition interest.

 

“Third Mezzanine Note” has the meaning set forth in the Recitals
hereto.

 

“Third  Mezzanine Noteholders”
has the meaning provided in the Recitals hereto.

 

29

 

“Third Mezzanine Pledge Agreement” has the meaning set forth
in the Recitals hereto.

 

“Third Party Agreement” has the meaning set forth in Section 6(a) hereof.

 

“Third Party Obligor” has the meaning set forth in Section 6(a) hereof.

 

“Transfer” means any assignment, pledge, conveyance, sale,
transfer, mortgage, encumbrance, grant of a security interest, issuance of a
participation interest, or other disposition, either directly or indirectly, by
operation of law or otherwise.

 

(a)           For all purposes of
this Agreement, except as otherwise expressly provided or unless the context
otherwise requires:

 

(i)            all
capitalized terms defined in the recitals to this Agreement shall have the
meanings ascribed thereto whenever used in this Agreement and the terms defined
in this Agreement have the meanings assigned to them in this Agreement, and the
use of any gender herein shall be deemed to include the other genders;

 

(ii)           terms
not otherwise defined herein shall have the meaning assigned to them in the
Senior Loan Agreement;

 

(iii)          all
references in this Agreement to designated Sections, Subsections, Paragraphs,
Articles, Exhibits, Schedules and other subdivisions or addenda without
reference to a document are to the designated sections, subsections, paragraphs
and articles and all other subdivisions of and exhibits, schedules and all
other addenda to this Agreement, unless otherwise specified;

 

(iv)          a
reference to a Subsection without further reference to a Section is a
reference to such Subsection as contained in the same Section in which the
reference appears, and this rule shall apply to Paragraphs and other
subdivisions;

 

(v)           the
terms “includes” or “including” shall mean without limitation by reason of
enumeration;

 

(vi)          the
words “herein”, “hereof”, “hereunder” and other words of similar import refer
to this Agreement as a whole and not to any particular provision;

 

(vii)         the
headings and captions used in this Agreement are for convenience of reference
only and do not define, limit or describe the scope or intent of the provisions
of this Agreement;

 

(viii)        the
words “to Junior Lender’s knowledge” or “to the knowledge of Junior Lender” (or
words of similar meaning) shall mean to the actual knowledge of officers of the
applicable Junior Lender with direct oversight 

 

30

 

responsibility
for its Junior Loan without independent investigation or inquiry and without
any imputation whatsoever; and

 

(ix)           the
words “to Senior Lender’s knowledge” or “to the knowledge of Senior Lender” (or
words of similar meaning) shall mean to the actual knowledge of officers of
Senior Lender with direct oversight responsibility for the Senior Loan without
independent investigation or inquiry and without any imputation whatsoever.

 

Section 2.               Characterization of the Junior
Loans.

 

(a)           Senior Loan. 
Each Junior Lender, with respect only to its Junior Loan, hereby
acknowledges that (i) Senior Borrower will not ever have any liability or
obligation whatsoever with respect to the Junior Notes or otherwise in
connection with the payment of the Junior Loans, (ii) the Junior Loans do
not constitute or impose, and shall not be deemed or construed as constituting
or imposing now or hereafter, a lien or encumbrance upon, or security interest
in any portion of the Premises or any other collateral securing the Senior Loan
or otherwise grant to any Junior Lender the status as a creditor of Senior
Borrower, (iii) they shall not assert, claim or raise as a defense, any
such lien, encumbrance or security interest in the Premises or any status as a
creditor of Senior Borrower in any action or proceeding, including any
insolvency or bankruptcy proceeding commenced by or against Senior Borrower and
(iv) they shall not assert, pursue, confirm or acquiesce in any way to any
recharacterization of the Junior Loans as having conferred upon any Junior
Lender any lien or encumbrance upon, or security interest in, the Premises or
any portion thereof or as having conferred upon Junior Lenders the status of a
creditor of Senior Borrower.

 

(b)           First Mezzanine Loan.  First Mezzanine Lender hereby acknowledges
that (i) no Junior Borrower other than the First Mezzanine Borrower will
ever have any liability or obligation whatsoever with respect to the First
Mezzanine Note or otherwise in connection with the payment of the First
Mezzanine Loan; (ii) the First Mezzanine Loan does not constitute or
impose, and shall not be deemed or construed as constituting or imposing now or
hereafter, a lien or encumbrance upon, or security interest in any portion of
the Separate Collateral securing any Junior Loan other than the First Mezzanine
Loan; (iii) the First Mezzanine Loan does not grant to First Mezzanine Lender
the status as a creditor of any Junior Borrower other than First Mezzanine
Borrower; (iv) First Mezzanine Lender shall not assert, claim or raise as
a defense, any such lien, encumbrance or security interest in the Separate
Collateral securing any Junior Loan other than the First Mezzanine Loan;
(v) First Mezzanine Lender shall not assert, claim or raise as a defense
any status as a creditor of any Junior Borrower other than First Mezzanine Borrower
in any action or proceeding, including any insolvency or bankruptcy proceeding
commenced by or against First Mezzanine Borrower; and (vi) First Mezzanine
Lender shall not assert, pursue, confirm or acquiesce in any way to any
recharacterization of the First Mezzanine Loan as having conferred upon First
Mezzanine Lender any lien or encumbrance upon, or security interest in, the
Separate Collateral securing any Junior Loan other than the First Mezzanine Loan
or as having conferred upon First Mezzanine Lender the status of a creditor of
any Junior Borrower other than First Mezzanine Borrower.

 

31

 

(c)           Second Mezzanine Loan.  Second Mezzanine Lender hereby acknowledges
that (i) no Junior Borrower other than the Second Mezzanine Borrower will
ever have any liability or obligation whatsoever with respect to the Second
Mezzanine Note or otherwise in connection with the payment of the Second
Mezzanine Loan; (ii) the Second Mezzanine Loan does not constitute or
impose, and shall not be deemed or construed as constituting or imposing now or
hereafter, a lien or encumbrance upon, or security interest in any portion of
the Separate Collateral securing any Junior Loan other than the Second
Mezzanine Loan; (iii) the Second Mezzanine Loan does not grant to Second
Mezzanine Lender the status as a creditor of any Junior Borrower other than
Second Mezzanine Borrower; (iv) Second Mezzanine Lender shall not assert,
claim or raise as a defense, any such lien, encumbrance or security interest in
the Separate Collateral securing any Junior Loan other than the Second
Mezzanine Loan; (v) Second Mezzanine Lender shall not assert, claim or
raise as a defense any status as a creditor of any Junior Borrower other than
Second Mezzanine Borrower in any action or proceeding, including any insolvency
or bankruptcy proceeding commenced by or against Second Mezzanine Borrower; and
(vi) Second Mezzanine Lender shall not assert, pursue, confirm or
acquiesce in any way to any recharacterization of the Second Mezzanine Loan as
having conferred upon Second Mezzanine Lender any lien or encumbrance upon, or
security interest in, the Separate Collateral securing any Junior Loan other
than the Second Mezzanine Loan or as having conferred upon Second Mezzanine
Lender the status of a creditor of any Junior Borrower other than Second
Mezzanine Borrower.

 

(d)           Third Mezzanine Loan.  Third Mezzanine Lender hereby acknowledges
that (i) no Junior Borrower other than the Third Mezzanine Borrower will
ever have any liability or obligation whatsoever with respect to the Third
Mezzanine Note or otherwise in connection with the payment of the Third Mezzanine
Loan; (ii) the Third Mezzanine Loan does not constitute or impose, and
shall not be deemed or construed as constituting or imposing now or hereafter,
a lien or encumbrance upon, or security interest in any portion of the Separate
Collateral securing any Junior Loan other than the Third Mezzanine Loan;
(iii) the Third Mezzanine Loan does not grant to Third Mezzanine Lender
the status as a creditor of any Junior Borrower other than Third Mezzanine
Borrower; (iv) Third Mezzanine Lender shall not assert, claim or raise as
a defense, any such lien, encumbrance or security interest in the Separate
Collateral securing any Junior Loan other than the Third Mezzanine Loan;
(v) Third Mezzanine Lender shall not assert, claim or raise as a defense
any status as a creditor of any Junior Borrower other than Third Mezzanine
Borrower in any action or proceeding, including any insolvency or bankruptcy
proceeding commenced by or against Third Mezzanine Borrower; and
(vi) Third Mezzanine Lender shall not assert, pursue, confirm or acquiesce
in any way to any recharacterization of the Third Mezzanine Loan as having
conferred upon Third Mezzanine Lender any lien or encumbrance upon, or security
interest in, the Separate Collateral securing any Junior Loan other than the
Third Mezzanine Loan or as having conferred upon Third Mezzanine Lender the
status of a creditor of any Junior Borrower other than Third Mezzanine
Borrower.

 

(e)           Fourth Mezzanine Loan.  Fourth Mezzanine Lender hereby acknowledges
that (i) no Junior Borrower other than the Fourth Mezzanine Borrower will
ever have any liability or obligation whatsoever with respect to the Fourth
Mezzanine Note or otherwise in connection with the payment of the Fourth
Mezzanine Loan; (ii) the Fourth Mezzanine Loan does not constitute or impose,
and shall not be deemed or construed as 

 

32

 

constituting or imposing now or hereafter, a lien or
encumbrance upon, or security interest in any portion of the Separate
Collateral securing any Junior Loan other than the Fourth Mezzanine Loan;
(iii) the Fourth Mezzanine Loan does not grant to Fourth Mezzanine Lender
the status as a creditor of any Junior Borrower other than Fourth Mezzanine
Borrower; (iv) Fourth Mezzanine Lender shall not assert, claim or raise as
a defense, any such lien, encumbrance or security interest in the Separate
Collateral securing any Junior Loan other than the Fourth Mezzanine Loan;
(v) Fourth Mezzanine Lender shall not assert, claim or raise as a defense
any status as a creditor of any Junior Borrower other than Fourth Mezzanine
Borrower in any action or proceeding, including any insolvency or bankruptcy
proceeding commenced by or against Fourth Mezzanine Borrower; and
(vi) Fourth Mezzanine Lender shall not assert, pursue, confirm or
acquiesce in any way to any recharacterization of the Fourth Mezzanine Loan as
having conferred upon Fourth Mezzanine Lender any lien or encumbrance upon, or
security interest in, the Separate Collateral securing any Junior Loan other
than the Fourth Mezzanine Loan or as having conferred upon Fourth Mezzanine
Lender the status of a creditor of any Junior Borrower other than Fourth
Mezzanine Borrower.

 

(f)            Fifth Mezzanine Loan.  Fifth Mezzanine Lender hereby acknowledges
that (i) no Junior Borrower other than the Fifth Mezzanine Borrower will
ever have any liability or obligation whatsoever with respect to the Fifth
Mezzanine Note or otherwise in connection with the payment of the Fifth
Mezzanine Loan; (ii) the Fifth Mezzanine Loan does not constitute or
impose, and shall not be deemed or construed as constituting or imposing now or
hereafter, a lien or encumbrance upon, or security interest in any portion of
the Separate Collateral securing any Junior Loan other than the Fifth Mezzanine
Loan; (iii) the Fifth Mezzanine Loan does not grant to Fifth Mezzanine
Lender the status as a creditor of any Junior Borrower other than Fifth
Mezzanine Borrower; (iv) Fifth Mezzanine Lender shall not assert, claim or
raise as a defense, any such lien, encumbrance or security interest in the
Separate Collateral securing any Junior Loan other than the Fifth Mezzanine
Loan; (v) Fifth Mezzanine Lender shall not assert, claim or raise as a
defense any status as a creditor of any Junior Borrower other than Fifth
Mezzanine Borrower in any action or proceeding, including any insolvency or
bankruptcy proceeding commenced by or against Fifth Mezzanine Borrower; and
(vi) Fifth Mezzanine Lender shall not assert, pursue, confirm or acquiesce
in any way to any recharacterization of the Fifth Mezzanine Loan as having
conferred upon Fifth Mezzanine Lender any lien or encumbrance upon, or security
interest in, the Separate Collateral securing any Junior Loan other than the
Fifth Mezzanine Loan or as having conferred upon Fifth Mezzanine Lender the
status of a creditor of any Junior Borrower other than Fifth Mezzanine
Borrower.

 

(g)           Sixth Mezzanine Loan.  Sixth Mezzanine Lender hereby acknowledges
that (i) no Junior Borrower other than the Sixth Mezzanine Borrower will
ever have any liability or obligation whatsoever with respect to the Sixth
Mezzanine Note or otherwise in connection with the payment of the Sixth
Mezzanine Loan; (ii) the Sixth Mezzanine Loan does not constitute or
impose, and shall not be deemed or construed as constituting or imposing now or
hereafter, a lien or encumbrance upon, or security interest in any portion of
the Separate Collateral securing any Junior Loan other than the Sixth Mezzanine
Loan; (iii) the Sixth Mezzanine Loan does not grant to Sixth Mezzanine Lender
the status as a creditor of any Junior Borrower other than Sixth Mezzanine
Borrower; (iv) Sixth Mezzanine Lender shall not assert, claim or raise as
a defense, any such lien, encumbrance or security interest in the 

 

33

 

Separate Collateral securing any Junior Loan other
than the Sixth Mezzanine Loan; (v) Sixth Mezzanine Lender shall not
assert, claim or raise as a defense any status as a creditor of any Junior
Borrower other than Sixth Mezzanine Borrower in any action or proceeding,
including any insolvency or bankruptcy proceeding commenced by or against Sixth
Mezzanine Borrower; and (vi) Sixth Mezzanine Lender shall not assert,
pursue, confirm or acquiesce in any way to any recharacterization of the Sixth
Mezzanine Loan as having conferred upon Sixth Mezzanine Lender any lien or
encumbrance upon, or security interest in, the Separate Collateral securing any
Junior Loan other than the Sixth Mezzanine Loan or as having conferred upon
Sixth Mezzanine Lender the status of a creditor of any Junior Borrower other
than Sixth Mezzanine Borrower.

 

(h)           Seventh Mezzanine Loan.  Seventh Mezzanine Lender hereby acknowledges
that (i) no Junior Borrower other than the Seventh Mezzanine Borrower will
ever have any liability or obligation whatsoever with respect to the Seventh
Mezzanine Note or otherwise in connection with the payment of the Seventh
Mezzanine Loan; (ii) the Seventh Mezzanine Loan does not constitute or
impose, and shall not be deemed or construed as constituting or imposing now or
hereafter, a lien or encumbrance upon, or security interest in any portion of
the Separate Collateral securing any Junior Loan other than the Seventh
Mezzanine Loan; (iii) the Seventh Mezzanine Loan does not grant to Seventh
Mezzanine Lender the status as a creditor of any Junior Borrower other than
Seventh Mezzanine Borrower; (iv) Seventh Mezzanine Lender shall not
assert, claim or raise as a defense, any such lien, encumbrance or security
interest in the Separate Collateral securing any Junior Loan other than the
Seventh Mezzanine Loan; (v) Seventh Mezzanine Lender shall not assert,
claim or raise as a defense any status as a creditor of any Junior Borrower
other than Seventh Mezzanine Borrower in any action or proceeding, including
any insolvency or bankruptcy proceeding commenced by or against Seventh
Mezzanine Borrower; and (vi) Seventh Mezzanine Lender shall not assert,
pursue, confirm or acquiesce in any way to any recharacterization of the
Seventh Mezzanine Loan as having conferred upon Seventh Mezzanine Lender any
lien or encumbrance upon, or security interest in, the Separate Collateral
securing any Junior Loan other than the Seventh Mezzanine Loan or as having
conferred upon Seventh Mezzanine Lender the status of a creditor of any Junior
Borrower other than Seventh Mezzanine Borrower.

 

(i)            Junior Loans. 
Senior Lender hereby acknowledges that (i) no Junior Borrower will
ever have any liability or obligation whatsoever with respect to the Senior
Note or otherwise in connection with the payment of the Senior Loan;
(ii) the Senior Loan does not constitute or impose, and shall not be
deemed or construed as constituting or imposing now or hereafter, a lien or
encumbrance upon, or security interest in any portion of the Separate Collateral
securing any Junior Loan; (iii) the Senior Loan does not grant to Senior
Lender the status as a creditor of any Junior Borrower; (iv) Senior Lender
shall not assert, claim or raise as a defense, any such lien, encumbrance or
security interest in the Separate Collateral securing any Junior Loan;
(v) Senior Lender shall not assert, claim or raise as a defense any status
as a creditor of any Junior Borrower in any action or proceeding, including any
insolvency or bankruptcy proceeding commenced by or against any Junior
Borrower; and (vi) Senior Lender shall not assert, pursue, confirm or
acquiesce in any way to any recharacterization of the Senior Loan as having
conferred upon Senior Lender any lien or encumbrance upon, or security 

 

34

 

interest in, the Separate Collateral securing any
Junior Loan or as having conferred upon Senior Lender the status of a creditor
of any Junior Borrower.

 

Section 3.               Approval of Loans and Loan
Documents.

 

(a)           Junior Lenders. 
Each Junior Lender hereby acknowledges that (i) it has received and
reviewed and, subject to the terms and conditions of this Agreement, hereby
consents to and approves of the making of the Senior Loan and each of the
Junior Loans and, subject to the terms and provisions of this Agreement, all of
the terms and provisions of the Senior Loan Documents and each of the Junior
Loan Documents; (ii) the execution, delivery and performance of the Senior
Loan Documents and each of the Junior Loan Documents will not constitute a
default or an event which, with the giving of notice or the lapse of time, or
both, would constitute a default under the Junior Loan Documents relating to
the Junior Loan held by such Junior Lender; (iii) none of Senior Lender or
any of the other Junior Lenders are under any obligation or duty to, nor has
Senior Lender or any of the other Junior Lenders represented that either will,
see to (A) the application of the proceeds of the Senior Loan by Borrower
or any other Person to whom Senior Lender disburses such proceeds and
(B) the application of the proceeds of any Junior Loan other than the
Junior Loan held by such Junior Lender; (iv) (A) any application or
use of the proceeds of the Senior Loan for purposes other than those provided
in the Senior Loan Documents shall not affect, impair or defeat the terms and
provisions of this Agreement or the Senior Loan Documents and (B) any
application or use of the proceeds of any Junior Loan other than the Junior
Loan held by such Junior Lender for purposes other than those provided in the
related Junior Loan Documents shall not affect, impair or defeat the terms and
provisions of this Agreement or the related Junior Loan Documents; and
(v) any conditions precedent to such Junior Lender’s consent to mezzanine
or partner financing as set forth in the Junior Loan Documents or any other
agreements with Junior Borrowers, as they apply to the Junior Loan Documents or
the making of the Junior Loans, have been either satisfied or waived.

 

(b)           Senior Lender. 
Senior Lender hereby acknowledges that (i) it has received and
reviewed, and, subject to the terms and conditions of this Agreement, hereby
consents to and approves of the making of the Junior Loans and, subject to the
terms and provisions of this Agreement, all of the terms and provisions of the
Junior Loan Documents; (ii) subject to the terms and provisions of this
Agreement, the execution, delivery and performance of the Junior Loan Documents
will not constitute a default or an event which, with the giving of notice or
the lapse of time, or both, would constitute a default under the Senior Loan
Documents; (iii) none of the Junior Lenders are under any obligation or
duty to, nor has any Junior Lender represented that it will, see to the
application of the proceeds of the Junior Loans; (iv) any application or
use of the proceeds of the Junior Loans for purposes other than those provided
in the Junior Loan Documents shall not affect, impair or defeat the terms and
provisions of this Agreement or the Junior Loan Documents; and (v) any
conditions precedent to Senior Lender’s consent to mezzanine or partner
financing as set forth in the Senior Loan Documents or any other agreements
with the Senior Borrower, as they apply to the Junior Loan Documents or the
making of the Junior Loans, have been either satisfied or waived.  Notwithstanding any provisions herein to the
contrary, Senior Lender agrees that no default or Event of Default under any of
the Junior Loan Documents shall, in and of itself, constitute or give rise to a
default or Event of Default under the Senior Loan Documents, 

 

35

 

entitle Senior Lender to accelerate payments under
the Senior Loan Documents or entitle Senior Lender to modify any provisions of
the Senior Loan Documents; provided, however, the circumstances
giving rise to a default or Event of Default under the Junior Loan Documents
may independently give rise to a default or Event of Default under the Senior
Loan Documents as provided for therein.

 

Section 4.               Representations and Warranties.

 

(a)           Senior Lender. 
Senior Lender hereby represents and warrants to each of the Junior
Lenders as follows:

 

(i)            Exhibit A attached hereto and made a part
hereof is a true and correct listing of the material Senior Loan Documents
(including all amendments, modifications, replacements, restatements and
supplements thereof) as of the date hereof. 
To Senior Lender’s knowledge, there currently exists no default or event
which, with the giving of notice or the lapse of time, or both, would
constitute a default under any of the Senior Loan Documents.

 

(ii)           Senior Lender and the other Senior Noteholders (as defined
in the Senior Loan Agreement) are the legal and beneficial owners of the Senior
Loan free and clear of any lien, security interest, option or other charge or
encumbrance.

 

(iii)          There are no conditions precedent to the effectiveness of
this Agreement with respect to Senior Lender that have not been satisfied or
waived.

 

(iv)          Senior Lender has, independently and without reliance upon
Junior Lenders and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to make the Senior Loan
and to enter into this Agreement.

 

(v)           Senior Lender is duly organized and is validly existing
under the laws of the jurisdiction under which it was organized with full power
to execute, deliver, and perform this Agreement and consummate the transactions
contemplated hereby.

 

(vi)          All actions necessary to authorize the execution, delivery,
and performance of this Agreement on behalf of Senior Lender have been duly
taken, and all such actions continue in full force and effect as of the date
hereof.

 

(vii)         Senior Lender has duly executed and delivered this Agreement
and this Agreement constitutes the legal, valid, and binding agreement of
Senior Lender enforceable against Senior Lender in accordance with its terms
subject to (y) applicable bankruptcy, reorganization, insolvency and
moratorium laws and (z) general principles of equity which may apply
regardless of whether a proceeding is brought in law or in equity.

 

(viii)        To Senior Lender’s knowledge, no consent
of any other Person and no consent, license, approval, or authorization of, or
exemption by, or registration or declaration or filing with, any governmental
authority, bureau or agency is required in 

 

36

 

connection with the
execution, delivery or performance by Senior Lender of this Agreement or
consummation by Senior Lender of the transactions contemplated by this
Agreement.

 

(ix)           None of the execution, delivery and performance of this
Agreement nor the consummation of the transactions contemplated by this
Agreement will (v) violate or conflict with any provision of the
organizational or governing documents, if any, of Senior Lender, (w) to
Senior Lender’s knowledge, violate, conflict with, or result in the breach or
termination of, or otherwise give any other Person the right to terminate, or
constitute (or with the giving of notice or lapse of time, or both, would
constitute) a default under the terms of any material contract, mortgage,
lease, bond, indenture, agreement, or other instrument to which Senior Lender
is a party or to which any of its properties are subject, (x) to Senior Lender’s
knowledge, result in the creation of any lien, charge, encumbrance, mortgage,
lease, claim, security interest, or other right or interest upon the properties
or assets of Senior Lender pursuant to the terms of any such material contract,
mortgage, lease, bond, indenture, agreement, franchise or other instrument,
(y) violate any judgment, order, injunction, decree or award of any court,
arbitrator, administrative agency or governmental or regulatory body of which
Senior Lender has knowledge against, or binding upon, Senior Lender or upon any
of the securities, properties, assets, or business of Senior Lender or
(z) to Senior Lender’s knowledge, constitute a violation by Senior Lender
of any statute, law or regulation that is applicable to Senior Lender.

 

(x)            The Senior Loan is not cross-defaulted with any other
loan.  The Premises do not secure any
other loan from Senior Lender to Senior Borrower, Junior Borrowers or any other
Affiliate of Senior Borrower.

 

(b)           Junior Lenders. 
Each Junior Lender hereby represents and warrants, for itself only, to
Senior Lender and the other Junior Lenders as follows:

 

(i)            There are no conditions precedent to the effectiveness of
this Agreement that with respect to such Junior Lender have not been satisfied
or waived.

 

(ii)           Such Junior Lender has, independently and without reliance
upon Senior Lender or any other Junior Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to make its respective Junior Loan and to enter into this Agreement.

 

(iii)          Such Junior Lender is duly organized and is validly
existing under the laws of the jurisdiction under which it was organized with
full power to execute, deliver, and perform this Agreement and consummate the
transactions contemplated hereby.

 

(iv)          All actions necessary to authorize the execution, delivery,
and performance of this Agreement on behalf of such Junior Lender have been
duly taken, and all such actions continue in full force and effect as of the
date hereof.

 

37

 

(v)           Such Junior Lender has duly executed and delivered this
Agreement and this Agreement constitutes the legal, valid, and binding
agreement of such Junior Lender enforceable against such Junior Lender in
accordance with its terms subject to (x) applicable bankruptcy,
reorganization, insolvency and moratorium laws and (y) general principles
of equity which may apply regardless of whether a proceeding is brought in law
or in equity.

 

(vi)          To the knowledge of such Junior Lender, no consent of any
other Person and no consent, license, approval, or authorization of, or
exemption by, or registration or declaration or filing with, any governmental
authority, bureau or agency is required in connection with the execution,
delivery or performance by such Junior Lender of this Agreement or consummation
by such Junior Lender of the transactions contemplated by this Agreement.

 

(vii)         None of the execution, delivery and performance of this
Agreement nor the consummation of the transactions contemplated by this
Agreement will (v) violate or conflict with any provision of the
organizational or governing documents of such Junior Lender, (w) to such
Junior Lender’s knowledge, violate, conflict with, or result in the breach or
termination of, or otherwise give any other Person the right to terminate, or
constitute (or with the giving of notice or lapse of time, or both, would
constitute) a default under the terms of any material contract, mortgage,
lease, bond, indenture, agreement, or other instrument to which such Junior
Lender is a party or to which any of its properties are subject, (x) to
such Junior Lender’s knowledge, result in the creation of any lien, charge,
encumbrance, mortgage, lease, claim, security interest, or other right or
interest upon the properties or assets of such Junior Lender pursuant to the
terms of any such material contract, mortgage, lease, bond, indenture,
agreement, franchise, or other instrument (provided, however,
that such Junior Lender shall have the right to grant a lien, charge,
encumbrance, claim or security interest in the Junior Loan held by such Junior
Lender or any portion thereof to a Loan Pledgee as contemplated by the
provisions of Section 16), (y) violate any judgment, order, injunction,
decree, or award of any court, arbitrator, administrative agency or
governmental or regulatory body of which such Junior Lender has knowledge
against, or binding upon, such Junior Lender or upon any of the securities,
properties, assets, or business of such Junior Lender or (z) to such
Junior Lender’s knowledge, constitute a violation by such Junior Lender of any
statute, law or regulation that is applicable to such Junior Lender.

 

(viii)        Such Junior Lender is a “Qualified
Transferee” pursuant to clause (v) of the definition thereof.

 

(c)           First Mezzanine Lender.  First Mezzanine Lender (but not any
transferee, successor or assign of First Mezzanine Lender) hereby represents
and warrants as follows:

 

(i)            Exhibit B attached hereto and made a part hereof
is a true and correct listing of all material First Mezzanine Loan Documents
(including all amendments, modifications, replacements, restatements and
supplements thereof) as of the date 

 

38

 

hereof.  To First Mezzanine Lender’s knowledge, there
currently exists no default or event which, with the giving of notice or the
lapse of time, or both, would constitute a default under the First Mezzanine
Loan Documents.

 

(ii)           First Mezzanine Lender and the other First Mezzanine
Noteholders are the legal and beneficial owners of the entire First Mezzanine
Loan free and clear of any lien, security interest, option or other charge or
encumbrance, other than any lien or security interest granted to any Loan
Pledgee (as hereinafter defined) as contemplated by the provisions of Section 16.

 

(iii)          The First Mezzanine Loan is not cross-defaulted with any
loan other than the Senior Loan.  The
Premises do not secure any loan from First Mezzanine Lender to First Mezzanine
Borrower or any other Affiliate of Senior Borrower.

 

(d)           Second Mezzanine Lender.  Second Mezzanine Lender (but not any
transferee, successor or assign of Second Mezzanine Lender) hereby represents
and warrants as follows:

 

(i)            Exhibit C attached hereto and made a part
hereof is a true and correct listing of all material Second Mezzanine Loan
Documents (including all amendments, modifications, replacements, restatements
and supplements thereof) as of the date hereof. 
To Second Mezzanine Lender’s knowledge, there currently exists no
default or event which, with the giving of notice or the lapse of time, or
both, would constitute a default under the Second Mezzanine Loan Documents.

 

(ii)           Second Mezzanine Lender and the other Second Mezzanine
Noteholders are the legal and beneficial owners of the entire Second Mezzanine
Loan free and clear of any lien, security interest, option or other charge or
encumbrance, other than any lien or security interest granted to any Loan
Pledgee (as hereinafter defined) as contemplated by the provisions of Section 16.

 

(iii)          The Second Mezzanine Loan is not cross-defaulted with any
loan other than the Senior Loan and the First Mezzanine Loan.  The Premises do not secure any loan from
Second Mezzanine Lender to Second Mezzanine Borrower or any other Affiliate of
Borrower.

 

(e)           Third Mezzanine Lender.  Third Mezzanine Lender (but not any
transferee, successor or assign of Third Mezzanine Lender) hereby represents
and warrants as follows:

 

(i)            Exhibit D attached hereto and made a part hereof
is a true and correct listing of all material Third Mezzanine Loan Documents
(including all amendments, modifications, replacements, restatements and
supplements thereof) as of the date hereof. 
To Third Mezzanine Lender’s knowledge, there currently exists no default
or event which, with the giving of notice or the lapse of time, or both, would
constitute a default under the Third Mezzanine Loan Documents.

 

39

 

(ii)      Third
Mezzanine Lender and the other Third Mezzanine Noteholders are the legal and
beneficial owners of the entire Third Mezzanine Loan free and clear of any
lien, security interest, option or other charge or encumbrance, other than any
lien or security interest granted to any Loan Pledgee (as hereinafter defined)
as contemplated by the provisions of Section 16.

 

(iii)     The
Third Mezzanine Loan is not cross-defaulted with any loan other than the Senior
Loan, the First Mezzanine  Loan and the
Second Mezzanine Loan.  The Premises do
not secure any loan from Third Mezzanine Lender to Third Mezzanine Borrower or
any other Affiliate of Senior Borrower.

 

(f)      Fourth Mezzanine Lender.  Fourth Mezzanine Lender (but not any
transferee, successor or assign of Fourth Mezzanine Lender) hereby represents
and warrants as follows:

 

(i)       Exhibit E attached hereto and
made a part hereof is a true and correct listing of all material Fourth
Mezzanine Loan Documents (including all amendments, modifications,
replacements, restatements and supplements thereof) as of the date hereof.  To Fourth Mezzanine Lender’s knowledge, there
currently exists no default or event which, with the giving of notice or the
lapse of time, or both, would constitute a default under the Fourth Mezzanine
Loan Documents.

 

(ii)      Fourth
Mezzanine Lender and the other Fourth Mezzanine Noteholders are the legal and
beneficial owners of the entire Fourth Mezzanine Loan free and clear of any
lien, security interest, option or other charge or encumbrance, other than any
lien or security interest granted to any Loan Pledgee (as hereinafter defined)
as contemplated by the provisions of Section 16.

 

(iii)     The
Fourth Mezzanine Loan is not cross-defaulted with any loan other than the
Senior Loan, the First Mezzanine  Loan,
the Second Mezzanine Loan and the Third Mezzanine Loan.  The Premises do not secure any loan from
Fourth Mezzanine Lender to Fourth Mezzanine Borrower or any other Affiliate of
Borrower.

 

(g)     Fifth
Mezzanine Lender.  Fifth Mezzanine Lender (but not any
transferee, successor or assign of Fifth Mezzanine Lender) hereby represents
and warrants as follows:

 

(i)       Exhibit F attached hereto and
made a part hereof is a true and correct listing of all material Fifth
Mezzanine Loan Documents (including all amendments, modifications,
replacements, restatements and supplements thereof) as of the date hereof.  To Fifth Mezzanine Lender’s knowledge, there
currently exists no default or event which, with the giving of notice or the
lapse of time, or both, would constitute a default under the Fifth Mezzanine
Loan Documents.

 

(ii)      Fifth
Mezzanine Lender and the other Fifth Mezzanine Noteholders are the legal and
beneficial owners of the entire Fifth Mezzanine Loan free and clear of any lien,
security interest, option or other charge or encumbrance, other than any lien
or 

 

40

 

security
interest granted to any Loan Pledgee (as hereinafter defined) as contemplated
by the provisions of Section 16.

 

(iii)     The
Fifth Mezzanine Loan is not cross-defaulted with any loan other than the Senior
Loan, the First Mezzanine  Loan, the
Second Mezzanine Loan, the Third Mezzanine Loan and the Fourth Mezzanine
Loan.  The Premises do not secure any
loan from Fifth Mezzanine Lender to Fifth Mezzanine Borrower or any other
Affiliate of Borrower.

 

(h)     Sixth
Mezzanine Lender.  Sixth Mezzanine Lender (but not any
transferee, successor or assign of Sixth Mezzanine Lender) hereby represents
and warrants as follows:

 

(i)       Exhibit G attached hereto and
made a part hereof is a true and correct listing of all material Sixth
Mezzanine Loan Documents (including all amendments, modifications,
replacements, restatements and supplements thereof) as of the date hereof.  To Sixth Mezzanine Lender’s knowledge, there
currently exists no default or event which, with the giving of notice or the
lapse of time, or both, would constitute a default under the Sixth Mezzanine
Loan Documents.

 

(ii)      Sixth
Mezzanine Lender and the other Sixth Mezzanine Noteholders are the legal and
beneficial owners of the entire Sixth Mezzanine Loan free and clear of any
lien, security interest, option or other charge or encumbrance, other than any
lien or security interest granted to any Loan Pledgee (as hereinafter defined)
as contemplated by the provisions of Section 16.

 

(iii)     The
Sixth Mezzanine Loan is not cross-defaulted with any loan other than the Senior
Loan, the First Mezzanine  Loan, the
Second Mezzanine Loan, the Third Mezzanine Loan, the Fourth Mezzanine Loan and
the Fifth Mezzanine Loan.  The Premises
do not secure any loan from Sixth Mezzanine Lender to Sixth Mezzanine Borrower
or any other Affiliate of Borrower.

 

(i)       Seventh Mezzanine Lender.  Seventh Mezzanine Lender (but not any
transferee, successor or assign of Seventh Mezzanine Lender) hereby represents
and warrants as follows:

 

(i)       Exhibit H attached hereto and
made a part hereof is a true and correct listing of all material Seventh
Mezzanine Loan Documents (including all amendments, modifications,
replacements, restatements and supplements thereof) as of the date hereof.  To Seventh Mezzanine Lender’s knowledge,
there currently exists no default or event which, with the giving of notice or
the lapse of time, or both, would constitute a default under the Seventh
Mezzanine Loan Documents.

 

(ii)      Seventh
Mezzanine Lender and the other Seventh Mezzanine Noteholders are the legal and
beneficial owners of the entire Seventh Mezzanine Loan free and clear of any
lien, security interest, option or other charge or encumbrance, other than any
lien or security interest granted to any Loan Pledgee (as hereinafter defined)
as contemplated by the provisions of Section 16.

 

41

 

(iii)     The
Seventh Mezzanine Loan is not cross-defaulted with any loan other than the
Senior Loan, the First Mezzanine  Loan,
the Second Mezzanine Loan, the Third Mezzanine Loan, the Fourth Mezzanine Loan,
the Fifth Mezzanine Loan and the Sixth Mezzanine Loan.  The Premises do not secure any loan from
Seventh Mezzanine Lender to Seventh Mezzanine Borrower or any other Affiliate
of Senior Borrower.

 

Section 5.         Transfer of Junior Loan or Senior Loan.

 

(a)      Junior Lender.  Notwithstanding the provisions of Section 9
or any other provisions hereof (including the provisions of Section 12(a)(iii) hereof),
no Junior Lender or any Loan Pledgee with respect to a Junior Loan shall
Transfer in the aggregate, taking into account all prior Transfers, more than
forty nine percent (49%) of its respective beneficial interest in its respective
Junior Loan to any Person that is not a Qualified Transferee or a Loan Pledgee,
without receiving a Rating Agency Confirmation (in which case the related
transferee shall thereafter be deemed to be a “Qualified
Transferee” for all purposes of this Agreement), and in connection
with any Transfer to a Qualified Transferee, any such Junior Lender shall, if
requested by the Rating Agencies, provide to Senior Lender, the other Junior
Lenders and the Rating Agencies within five (5) Business Days of such
Transfer a certification that such Transfer has been made to a Qualified
Transferee or a Loan Pledgee.  Any such
transferee (other than a Loan Pledgee or a participant in connection with a
participation of a portion of the applicable Junior Loan), must assume in writing
the obligations of such Junior Lender hereunder arising from and after the date
of such Transfer (and such Junior Lender shall remain liable for its
obligations hereunder arising prior to the date of such Transfer) and agree to
be bound by the terms and provisions hereof. 
Such proposed transferee (other than a Loan Pledgee (prior to its
realization on the Pledged Junior Loan) or a participant in connection with a
participation of a portion of the applicable Junior Loan) shall also remake
each of the representations and warranties contained herein which are
applicable to the Junior Loan being acquired for the benefit of the Senior
Lender and the Junior Lenders.

 

(b)     Senior
Junior Lender.  Each Senior Junior Lender may, from time to
time, in its sole discretion Transfer all or any part of the applicable Senior
Junior Loan or any interest therein as permitted herein without the consent of
any applicable Subordinate Junior Lender but subject to the other provisions of
this Section 5, and, notwithstanding any such Transfer or
subsequent Transfer by a transferee of such Senior Junior Lender, such Senior
Junior Loan and such Senior Junior Loan Documents shall be and remain a senior
obligation with respect to the applicable Subordinate Junior Loans in the respects
set forth in this Agreement and in accordance with the terms and provisions of
this Agreement; provided, however, in no event shall any such
Transfer be to Senior Borrower or to any Affiliate of Senior Borrower
(including, without limitation, any Junior Borrower that is an Affiliate of
Senior Borrower), provided, however, that the aforesaid
prohibition shall not apply to any Junior Lender or an Affiliate thereof that
has acquired title to Equity Collateral.

 

(c)      Directing Senior Lender.  If more than one Person shall hold a direct
interest in the Senior Loan, the holder(s) of more than fifty percent
(50%) of the principal amount of the Senior Loan (unless the applicable
participation agreement or co-lender agreement among the holders of the Senior
Loan provides a different designation mechanism, which different mechanism
shall be specified in such notice and upon which each Junior 

 

42

 

Lender shall be entitled to
rely) shall designate by written notice to the Junior Lenders either
(i) one of such Persons or (ii) a servicer on behalf of such Persons
(the “Directing Senior Lender”) to act on
behalf of all such Persons holding an interest in the Senior Loan.  Except as otherwise agreed in writing by the
Senior Lender and Junior Lenders, the Directing Senior Lender shall have the
sole right to receive any notices which are required to be given or which may
be given to the Senior Lender and to exercise the rights and power given to the
Senior Lender, including any approval rights of the Senior Lender; provided,
that until a Directing Senior Lender has been so designated, the last Person
known to the Junior Lenders to be the Directing Senior Lender or to hold more
than a fifty percent (50%) direct interest in the Senior Loan shall be deemed
to be the Directing Senior Lender.  Once
a Directing Senior Lender has been designated hereunder, each Junior Lender
shall be entitled to rely on such designation until it has received written
notice from the Directing Senior Lender or the holder(s) of more than
fifty percent (50%) of the principal amount of the Senior Loan of the
designation of a different Person to act as the Directing Senior Lender (unless
the applicable participation agreement or co-lender agreement among the holders
of the Senior Loan provides a different designation mechanism, which different
mechanism shall be specified in such notice and upon which each Junior Lender
shall be entitled to rely). 
Notwithstanding any provision of this Section 5(c) to
the contrary, each Person holding an interest in the Senior Loan shall be
deemed to be a Senior Lender for purposes of the rights and restrictions
contained in Sections 5(a), (b) and (c), and
shall be subject to the rights and restrictions thereof with respect to such
Person’s interest in the Senior Loan.

 

(d)     Directing
Junior Lender.  If more than one Person shall hold a direct
interest in a Junior Loan, the holder(s) of more than fifty percent (50%)
of the principal amount of such Junior Loan (unless the applicable
participation agreement or co-lender agreement among the holders of such Junior
Loan provides a different designation mechanism, which different mechanism
shall be specified in such notice and upon which Senior Lender and each Junior
Lender shall be entitled to rely) shall designate by written notice to Senior
Lender and the other Junior Lenders one of such Persons (a “Directing Junior Lender”) to act on behalf of all such
Persons holding an interest in such Junior Loan.  Except as otherwise agreed in writing by the
Senior Lender and Junior Lenders, the Directing Junior Lender shall have the
sole right to receive any notices which are required to be given or which may
be given to the Junior Lender holding the applicable Junior Loan pursuant to
this Agreement and to exercise the rights and power given to the Junior Lender
holding the applicable Junior Loan hereunder, including any approval rights of
the Junior Lender holding the applicable Junior Loan; provided, that
until a Directing Junior Lender has been so designated, the last Person known
to the Senior Lender and the other Junior Lenders to hold more than a fifty
percent (50%) direct interest in the applicable Junior Loan shall be deemed to
be the Directing Junior Lender for such Junior Loan.  Once a Directing Junior Lender has been
designated hereunder with respect to a Junior Loan, Senior Lender and each
other Junior Lender shall be entitled to rely on such designation until it has
received written notice from the holder(s) of more than fifty percent (50%)
of the principal amount of the applicable Junior Loan of the designation of a
different Person to act as the Directing Junior Lender for such Junior Loan
(unless the applicable participation agreement or co-lender agreement among the
holders of such Junior Loan provides a different designation mechanism, which
different mechanism shall be specified in such notice and upon which Senior
Lender and each Junior Lender shall be entitled to rely).  Notwithstanding any provision of this Section 5(d) to
the contrary, each Person holding an 

 

43

 

interest in a Junior Loan
shall be deemed to be a Junior Lender with respect to the applicable Junior
Loan for purposes of the rights and restrictions contained in Section 5(a),
(b) and (d), and shall be subject to the rights and
restrictions thereof with respect to such Person’s interest in the applicable
Junior Loan.

 

(e)      Senior Lender.  Senior Lender may, from time to time, in its
sole discretion, Transfer all or any of the Senior Loan or any interest therein
in accordance with the terms of this Agreement, provided that any such
transferee (other than in connection with a Securitization, provided the
Transfer is made subject to this Agreement) assumes in writing the obligations
of Senior Lender hereunder accruing from and after such Transfer and (except in
connection with a Securitization) agrees to be bound by the terms and
provisions hereof, and notwithstanding any such Transfer or subsequent
Transfer, the Senior Loan and the Senior Loan Documents shall be and remain a
senior obligation in the respects set forth in this Agreement to the Junior
Loan and the Junior Loan Documents in accordance with the terms and provisions
of this Agreement.  Senior Lender agrees
that, Senior Lender will not Transfer the Senior Loan to Borrower or any
Affiliate of Borrower without the consent of all of the Junior Lenders, which
may be withheld in the Junior Lenders’ sole discretion.

 

Section 6.         Foreclosure of Separate Collateral.  (a)  Notwithstanding the provisions
of Section 8 or any other provisions hereof (including the
provisions of Section 12(a)(iii) hereof), no Junior Lender nor
any Loan Pledgee with respect to a Junior Loan shall complete a foreclosure or
otherwise realize upon any of its Equity Collateral (or accept title to such
Equity Collateral in lieu of foreclosure, including, without limitation, sell
or otherwise transfer the Equity Collateral) unless (i) the transferee of
the title to such Equity Collateral is a Qualified Transferee, (ii) each
of the Individual Properties will be managed and operated by a Qualified
Operator  within thirty (30) days after the
transfer of title, (iii) if a non-consolidation opinion was delivered in
connection with the origination of the Senior Loan, there is delivered at the
transfer of title a non-consolidation opinion which has been reviewed and
approved by counsel to such Junior Lender as being in a form which would be in
such counsel’s view acceptable to the Rating Agencies, and within ten (10) Business
Days after the transfer, a non-consolidation opinion acceptable to the Rating
Agencies and the applicable Senior Junior Lenders, (iv) the existing cash
management system is maintained, to the extent required under the Senior Loan
Documents and the applicable Senior Junior Loan Documents, (v) immediately
following such foreclosure reserves for taxes, debt service, capital repair and
improvement expenses, tenant improvement expenses, leasing commissions and
operating expenses, insurance and ground rents, if any, are, to the extent
required under the Senior Loan Documents and the applicable Senior Junior Loan
Documents, maintained, (vi) after giving effect to such Transfer, on and
after the date of such Transfer, Senior Borrower and the applicable Junior
Borrower (to the extent required by the Senior Loan Documents and the
applicable Senior Junior Loan Documents) are Special Purpose Entities, and
(vii) notice of the Transfer and an officer’s certificate from an officer
of the applicable Junior Lender certifying that all conditions set forth in
clauses (i) through (vi) above have been satisfied must be
provided to Senior Lender, the applicable Senior Junior Lenders and the Rating
Agencies upon the satisfaction of the requirements set forth above (which shall
be within thirty (30) days subsequent to the Transfer).  In the event that such Transfer results in
the explicit release from future liability of any guarantor, indemnitor,
pledgor, or other obligor (each, a “Third Party Obligor”),
under the Senior Loan and/or any Senior Junior Loan, or any other guaranty,
pledge 

 

44

 

or indemnity which may
constitute a Senior Loan Document and/or a Senior Junior Loan Document (each, a
“Third Party Agreement”), such transferee
or an Affiliate thereof reasonably satisfactory to Senior Lender and the
applicable Senior Junior Lender shall: 
(A) execute and deliver to each of Senior Lender and/or the
applicable Senior Junior Lender a substitute Third Party Agreement from a substitute
Third Party Obligor reasonably acceptable to Senior Lender and each applicable
Senior Junior Lender, in each case in a form substantially similar to the
original Third Party Agreement that it is replacing or otherwise in form
reasonably acceptable to Senior Lender and each applicable Senior Junior
Lender, pursuant to which the substitute Third Party Obligor shall undertake
the obligations set forth therein from and after the date of such Transfer (and
only to the extent arising from and after the date of such Transfer), and
(B) if there are Certificates then outstanding, deliver (or cause to be
delivered) to Senior Lender and each Rating Agency, an opinion of counsel that
the substitution of the original Third Party Obligor and the original Third Party
Agreement with a substitute Third Party Obligor and a substitute Third Party
Agreement, would not cause a “significant modification” of the Senior Loan, as
such term is defined in Treasury Regulations Section 1.860G 2(b); provided,
however, that any substitute Third Party Obligor which is a Qualified
Transferee pursuant to clause (iv) of the definition of “Qualified
Transferee” shall be deemed satisfactory to Senior Lender and the applicable
Senior Junior Lenders.

 

(b)     Nothing
contained herein shall limit or restrict the right of any Junior Lender to
exercise its rights and remedies, in law or in equity, or otherwise, in order
to realize on any of its Separate Collateral that is not Equity Collateral and
to apply the proceeds therefrom as it deems appropriate in its discretion (i.e., without payment subordination) (including exercising
any remedy against any guarantor (a “Guarantor”)
pursuant to any guaranty granted to any Junior Lender as additional collateral
to secure the obligations under the applicable Junior Loan Documents) (a “Guaranty Claim”); provided, however, each
Junior Lender agrees that it shall not pursue the enforcement of any judgments
against Guarantor (but shall not be precluded from obtaining a judgment)
pursuant to this clause (b) if (i) Junior Lender has
received notice that Senior Lender is simultaneously exercising any rights and
remedies that it may have against such Guarantor under any guaranty granted to
Senior Lender as additional collateral to secure the obligations under the Senior
Loan Documents or  (ii) Junior
Lender has received notice that a Senior Junior Lender is simultaneously
exercising any rights and remedies that it may have against such Guarantor
under any guaranty granted to such Senior Junior Lender as additional collateral
to secure the obligations under the Senior Junior Loan Documents and any right
of payment of any Junior Lender under a Guaranty Claim shall be subject and
subordinate in all respects to the rights and claims of Senior Lender and any
applicable Senior Junior Lenders against such Guarantor.

 

(c)      In
the event a Junior Lender that is a Qualified Transferee or any Qualified
Transferee purchaser at a UCC sale obtains title to the Equity Collateral, each
of Senior Lender and any Senior Junior Lender acknowledges and agrees that any
transfer or assumption fee in the Senior Loan Agreement or any Senior Junior
Loan Agreement shall be waived as a condition to such Transfer however, all
reasonable expenses incurred by Senior Lender and by any Senior Junior Lender
in connection with any such Transfer shall be paid by such Junior Lender and
any such Transfer shall not constitute a breach or default under the Senior
Loan Documents or any Senior Junior Loan Documents, provided that such action
is enforced in accordance with the terms and conditions of this Agreement,
including 

 

45

 

Section 6(a).  Senior Lender and any
applicable Senior Junior Lender shall not impose any unreasonable delay in
connection with any such Transfer.

 

(d)     To
the extent that any Qualified Transferee acquires the Equity Collateral pledged
to a Junior Lender pursuant to the Junior Loan Documents in accordance with the
provisions and conditions of this Agreement (including, but not limited to Section 12
hereof), such Qualified Transferee shall acquire the same subject to
(i) the Senior Loan and the terms, conditions and provisions of the Senior
Loan Documents and (ii) the applicable Senior Junior Loans and the terms,
conditions and provisions of the applicable Senior Junior Loan Documents, in
each case for the balance of the term thereof, which shall not be accelerated
by Senior Lender or the related Senior Junior Lender solely due to such
acquisition and shall remain in full force and effect; provided, however,
that (A) such Qualified Transferee shall cause, within ten (10) days
after the transfer, (1) Senior Borrower and (2) the applicable Senior
Junior Borrowers, in each case to reaffirm in writing, subject to such
exculpatory provisions as shall be set forth in the Senior Loan Documents and
the related Senior Junior Loan Documents, as applicable, all of the terms,
conditions and provisions of the Senior Loan Documents and the related Senior
Junior Loan Documents, as applicable, on Senior Borrower’s or the applicable
Senior Junior Borrower’s, as applicable, part to be performed and (B) all
defaults under (1) the Senior Loan and (2) the applicable Senior
Junior Loans, in each case which remain uncured or unwaived as of the date of
such acquisition have been cured by such Qualified Transferee except for
defaults that are not susceptible of being cured by such Qualified Transferee; provided,
that such defaults which are not susceptible of being cured do not materially
impair the value, use or operation of the Premises taken as a whole, all as
determined in the reasonable judgment of Senior Lender and the applicable
Senior Junior Lenders, or in the case of defaults that can only be cured by the
Junior Lender following its acquisition of the Equity Collateral, the same
shall be cured by the Junior Lender prior to the expiration of the applicable
Extended Non-Monetary Cure Period.

 

(e)      Nothing
contained in Section 5(a) or this Section 6 is
intended (i) to limit any Loan Pledgee’s right under its financing documents
with any Junior Lender to foreclose against such Junior Lender, provided
that such Loan Pledgee complies with the applicable provisions of Section 16,
or (ii) if any such Loan Pledgee has foreclosed under its financing
documents as aforesaid, to limit such Loan Pledgee’s right to foreclose against
the applicable Junior Borrower’s interest in the Separate Collateral, provided
that Loan Pledgee complies with the applicable provisions of Section 5
and this Section 6.

 

Section 7.         Notice of Rating Confirmation.  Each Junior Lender shall promptly notify
Senior Lender and each other Junior Lender of any intended action relating to
its respective Junior Loan which would require Rating Agency Confirmation
hereunder and shall cooperate with Senior Lender in obtaining such
confirmation.  Senior Lender promptly
shall notify Junior Lenders of any intended action relating to the Senior Loan
which would so require Rating Agency Confirmation and shall cooperate with
Junior Lenders in obtaining such confirmation. 
The party whose actions necessitate or require Rating Agency
Confirmation shall pay all fees and expenses of the Rating Agencies in
connection with such request.

 

Section 8.         Modifications, Amendments, etc.  (a)  Senior Lender shall have the
right without the consent of any Junior Lender in each instance to enter into
any 

 

46

 

amendment, deferral,
extension, modification, increase, renewal, replacement, consolidation,
supplement or waiver (collectively, a “Senior Loan Modification”)
of the Senior Loan or any of the Senior Loan Documents provided that no such
Senior Loan Modification shall (i) increase the interest rate or principal
amount of the Senior Loan except for increases in principal to cover workout
costs and enforcement costs (including closing costs in connection therewith)
and Protective Advances, (ii) increase in any other material respect any
monetary obligations of Senior Borrower under the Senior Loan Documents,
(iii) extend or shorten the scheduled maturity date of the Senior Loan
(other than by acceleration of the Senior Loan after the lapse of any cure
periods granted to any Junior Lender pursuant to the terms of this Agreement or
an extension option scheduled pursuant to the terms of the Senior Loan
Documents on the date hereof), (iv) increase the amount of any principal
payments required under the Senior Loan or modify any related principal
amortization schedule in a manner which would increase the amount of principal
payments except if increased in connection with (i) above,
(v) convert or exchange the Senior Loan into or for any other indebtedness
or subordinate any of the Senior Loan to any other indebtedness of Senior
Borrower, (vi) accept a grant of any lien on or security interest in any
collateral or property of Senior Borrower or any other Person not originally
granted or contemplated to be granted under the Senior Loan Documents,
(vii) modify, waive or amend the terms and provisions of the Senior Loan
Cash Management Agreement or the Senior Loan Agreement with respect to
(1) the definitions of “Acceptable Counterparty”, “Debt Service”, “Limited
Cure Release Amount”, “Release Amount” or “Spread Maintenance Premium” (as such
terms are defined in the Senior Loan Agreement and/or the Cash Management
Agreement), and any of the terms used within such definitions or the covenants
relating thereto, (2) any reserves or escrows, including, without
limitation, those for taxes, insurance, debt service, repairs, replacements and
ground rent, if any, or any provisions regarding the release of funds from
escrow (or waive compliance therewith) or reduce or, except as may be
reasonably required, increase monthly escrow deposit amounts, (3) any
future funding obligation or additional advances of loan proceeds, if any, or
(4) the amount of, manner, timing, method of the application of, or order
of priority in payment, of payments under the Senior Loan Documents or the
Junior Loan Documents, (viii) cross-default the Senior Loan with or
subordinate the Senior Loan to any other indebtedness, (ix) obtain any
equity interest in Senior Borrower or any Junior Borrower, or any contingent
interest, additional interest or so called “kicker” measured on the basis of
the cash flow or appreciation of the Premises, (x) consent to a higher
strike price with respect to the current or any new or extended interest rate
cap agreement entered into in connection with the Senior Loan or any extended
term of the Senior Loan or waive the requirement for an interest rate cap
agreement if now or in the future called for under the Senior Loan Documents or
waive or release any obligation of the counterparty under any interest rate cap
agreement, (xi) waive, amend or modify the transfer or encumbrance
provisions in the Senior Loan Documents, including, without limitation,
modifying the Release Amount or Limited Cure Release Amount, (xii) spread
the lien of any Mortgage to encumber additional real property (other than
pursuant to the Substitution provisions of the Senior Loan Agreement), (xiii) extend
the period during which voluntary prepayments are prohibited or during which
prepayments require the payment of a prepayment fee or premium or yield or
spread maintenance charge or impose any prepayment fee or premium or yield or
spread maintenance charge in connection with a prepayment of the Senior Loan
when none is now required or after the current maturity date of the Senior Loan
or increase the amount of such prepayment fee, premium or yield or 

 

47

 

spread maintenance charge,
(xiv) modify, waive or amend, in any material respect, the terms and
provisions of Section 6.1 of the Senior Loan Agreement (including any
deductibles, limits, qualifications of insurers or terrorism insurance requirements),
(xv) release its lien on any material portion of the collateral originally
granted under the Senior Loan Documents (except as may be required in
accordance with the terms of the Senior Loan Documents), (xvi) amend or
modify the definition of Event of Default under the Senior Loan Documents,
(xvii) impose any additional fees upon Senior Borrower that would be
required to be paid on a periodic or regular basis, (xviii) add provisions
which would prohibit or restrict any Junior Lender (or any transferee of the interest
in any Junior Loan) from acquiring the interest of the applicable Junior
Borrower by foreclosure of the applicable Equity Collateral, (xix) impose
any financial covenants on Senior Borrower (or if such covenants exist, impose
more restrictive financial covenants on Senior Borrower); provided, however,
in no event shall Senior Lender be obligated to obtain any Junior Lender’s
consent to a Senior Loan Modification prohibited above in the case of a workout
or other surrender, extension, compromise, release, renewal, or indulgence
relating to the Senior Loan following the occurrence and continuance of an
Event of Default under the Senior Loan Documents, except, that (A) under
no condition shall the principal balance of Senior Loan be increased in violation
of item (i) above (with respect to increase in principal amount only)
or the modifications described in clauses (ix), (xiii) or (xvii) (except
for any workout fee payable to the Servicer of the Senior Loan following a
Securitization) above be made, without in each case the prior written consent
of each of the Junior Lenders and (B) during any Monetary Cure Period,
Extended Monetary Cure Period, Non-Monetary Cure Period or Extended
Non-Monetary Cure Period, provided that each Junior Lender is in compliance
with the provisions of Section 6 above, Senior Lender will not
violate the provisions contained in clauses (i) through (xix) above
without the prior written consent of each Junior Lender.  In addition and notwithstanding the foregoing
provisions of this Section 8(a), any amounts funded by Senior
Lender pursuant to the Senior Loan Documents as a result of (1) the making
of any Protective Advances or other advances by Senior Lender expressly
permitted by the terms of the Senior Loan Documents, or (2) interest
accruals or accretions provided for in the Senior Loan Documents as of the date
hereof and any compounding thereof (including default interest), shall not be
deemed to contravene this Section 8(a); for the purposes of this
sentence the term “Protective Advances”
shall include all advances where the sums advanced are advanced for the benefit
of the Premises whether or not expressly provided for in the Senior Loan
Documents.

 

(b)           Each Subordinate Junior Lender shall have the right without the consent
of Senior Lender or any Senior Junior Lender, in each instance to enter into
any amendment, deferral, extension, modification, increase, renewal,
replacement, consolidation, supplement or waiver (collectively, a “Junior Loan Modification”) of its Junior Loan or Junior Loan
Documents, provided, that without first receiving the consent of Senior
Lender and any applicable Senior Junior Lender, no such Junior Loan
Modification shall:  (i) increase
the interest rate or principal amount of the applicable Junior Loan except for
increases in principal to cover workout costs and enforcement costs (including
closing costs in connection therewith) and Protective Advances,
(ii) increase in any other material respect any monetary obligations of
the applicable Junior Borrower under the applicable Junior Loan Documents,
(iii) extend or shorten the scheduled maturity date of the applicable
Junior Loan (other than by an acceleration of such Junior Loan after the lapse
of any cure periods granted to any Subordinate Junior Lender pursuant to the
terms of this Agreement), (iv) increase the amount of any 

 

48

 

principal payments required
under the applicable Junior Loan or modify any related principal amortization
schedule in a manner which would increase the amount of principal payments
except if increased in connection with (i) above, (v) convert or
exchange the applicable Junior Loan into or for any other indebtedness, or
subordinate any of such Junior Loan, to any indebtedness of the applicable
Junior Borrower, (vi) accept a grant of any lien on or security interest
in any collateral or property of the applicable Junior Borrower or any other
Person not originally granted or contemplated to be granted under the
applicable Junior Loan Documents, unless (x) such collateral or property
is owned by a Person other than such Junior Borrower and is not collateral for
the Senior Loan or any Senior Junior Loan and (y) the consent of Senior
Lender and the applicable Senior Junior Lender, is obtained if such consent is
required pursuant to the Senior Loan Documents or the applicable Senior Junior
Loan Documents, (vii) obtain any equity interest in Senior Borrower or any
Junior Borrower other than the applicable Junior Borrower, or any contingent
interest, additional interest or so called “kicker”, (viii) spread the
lien and security interest of the Pledge Agreement to encumber additional
collateral, (ix) cross-default the applicable Junior Loan with any other
indebtedness other than the Senior Loan and any Senior Junior Loan,
(x) waive, amend or modify the transfer or encumbrance provisions in the
applicable Junior Loan Documents, including, without limitation, modifying the
Release Amount or Limited Cure Release Amount, (xi) consent to a higher
strike price with respect to the current or any new or extended interest rate
cap agreement entered into in connection with the applicable Junior Loan or any
extended term of the applicable Junior Loan. 
In addition and notwithstanding the foregoing provisions of this Section 8(b),
(a) any amounts funded by a Junior Lender under its respective Junior Loan
Documents as a result of (1) the making of any Protective Advances or
other advances by such Junior Lender expressly permitted by the terms of its
Junior Loan Documents as of the date hereof or (2) interest accruals or
accretions and any compounding thereof (including default interest) shall not
be deemed to contravene this Section 8(b).  Notwithstanding the foregoing, in addressing
an Event of Default that has occurred under any Junior Loan Documents, or if a
Junior Lender in good faith believes that a Default (as defined in the
applicable Junior Loan Agreement) has occurred and Senior Lender and the
applicable Senior Junior Lenders, in their reasonable discretion, concur that
such Default under the applicable Junior Loan has occurred, the applicable
Junior Lender shall be permitted to amend or modify the applicable Junior Loan
in connection with a workout or other surrender, compromise, release, renewal
or modification of such Junior Loan, provided that under no conditions
shall the modifications described in clause (i) above (with respect
to increases in principal amounts only), clause (ii), clause (iii) (with
respect to shortening the maturity only), clause (iv), clause (v), or
clause (vii) above be made without the prior written consent of
Senior Lender and the applicable Senior Junior Lenders, and provided, further,
that any such amendment or modification shall not (x) increase the per
annum rate at which interest is payable under the applicable Junior Loan,
unless such additional interest accrues and is contingent and if no Event of
Default under the Senior Loan and any applicable Senior Junior Loans exists,
then such additional interest may be paid from excess net cash flow that would
otherwise be payable to Senior Borrower or any Junior Borrower or
(y) require any specified sums as amortization payments other than as now
provided under the applicable Junior Loan Documents (however, such Junior
Lender will be permitted to retain excess net cash flow that would otherwise be
payable to Senior Borrower or any applicable Junior Borrower and to apply such
cash flow to the amortization of the principal balance of the applicable Junior
Loan or to deferred interest under the applicable Junior Loan,

 

49

 

subject to any prior right to such funds under the
Senior Loan Cash Management Agreement and any applicable Senior Junior Loan
Cash Management Agreement).

 

(c)           Each Senior Junior Lender shall have the right without the
consent of any applicable Subordinate Junior Lender, in each instance to enter
into any amendment, deferral, extension, modification, increase, renewal,
replacement, consolidation, supplement or waiver (collectively, a “Senior Junior Loan Modification”) of its Senior Junior Loan
or Senior Junior Loan Documents, provided, that without first receiving
the consent of any applicable Subordinate Junior Lender, no such Senior Junior
Loan Modification shall: 
(i) increase the interest rate or principal amount of the
applicable Senior Junior Loan except for increases in principal to cover
workout costs and enforcement costs (including closing costs in connection
therewith) and Protective Advances, (ii) increase in any other material
respect any monetary obligations of the applicable Senior Junior Borrower under
the applicable Senior Junior Loan Documents, (iii) extend or shorten the
scheduled maturity date of the applicable Senior Junior Loan (other than by
acceleration of such Senior Junior Loan after the lapse of any cure periods
granted to any Subordinate Junior Lender pursuant to the terms of this
Agreement or an extension option scheduled pursuant to the terms of the Senior
Junior Loan Documents on the date hereof)), (iv) increase the amount of
any principal payments required under the applicable Senior Junior Loan or
modify any related principal amortization schedule in a manner which would
increase the amount of principal payments except if increased in connection
with (i) above, (v) convert or exchange the applicable Senior Junior
Loan into or for any other indebtedness, or subordinate any of such Senior
Junior Loan, to any indebtedness of the applicable Senior Junior Borrower,
(vi) accept a grant of any lien on or security interest in any collateral
or property of the applicable Senior Junior Borrower or any other Person not
originally granted or contemplated to be granted under the applicable Senior
Junior Loan Documents, (vii) modify, waive or amend the terms and
provisions of the applicable Senior Junior Loan Cash Management Agreement or
the applicable Senior Junior Loan Agreement with respect to (1) the
definitions of “Acceptable Counterparty”, “Debt Service”, “Limited Cure Release
Amount”, “Release Amount” or “Spread Maintenance Premium” (as such terms are
defined in the applicable Senior Junior Loan Agreement and/or the applicable
Senior Junior Loan Cash Management Agreement), and any of the terms used within
such definitions or the covenants relating thereto, (2) any reserves or
escrows, including, without limitation, those for taxes, insurance, debt
service, repairs, replacements and ground rent, if any, or any provisions
regarding the release of funds from escrow (or waive compliance therewith) or
reduce or, except as may be reasonably required, increase monthly escrow
deposit amounts, (3) any future funding obligation or additional advances
of loan proceeds, if any, or (4) the amount of, manner, timing, method of
the application of, or order of priority in payment, of payments under the
applicable Senior Junior Loan Documents or the applicable Subordinate Junior
Loan Documents, (viii) cross-default or subordinate the applicable Senior
Junior Loan to any other indebtedness other than the Senior Loan and any more
senior Senior Junior Loan, (ix) obtain any equity interest in Senior Borrower
or any Junior Borrower other than pursuant to an Equity Collateral Enforcement
Action permitted hereunder, or any contingent interest, additional interest or
so called “kicker”, (x) consent to a higher strike price with respect to
the current or any new or extended interest rate cap agreement entered into in
connection with the applicable Senior Junior Loan or any extended term of the
applicable Senior Junior Loan or waive the requirement for a interest rate cap
agreement if now or in the future called for under the applicable Senior Junior
Loan Documents or waive or release any obligation of the

 

50

 

counterparty under any interest rate cap agreement,
(xi) waive, amend or modify the transfer or encumbrance provisions in the
applicable Senior Junior Loan Documents, including, without limitation,
modifying the Release Amount or Limited Cure Release Amount, (xii) spread
the lien of the applicable Pledge Agreement to encumber additional collateral,
(xiii) extend the period during which voluntary prepayments are prohibited
or during which prepayments require the payment of a prepayment fee or premium
or yield maintenance charge or impose any prepayment fee or premium or yield or
spread maintenance charge in connection with a prepayment of the applicable
Senior Junior Loan when none is now required or after the current maturity date
of the applicable Senior Junior Loan or increase the amount of such prepayment
fee, premium or yield or spread maintenance charge, (xiv) modify, waive or
amend, in any material respect, the terms and provisions of Section 6.1 of
the applicable Senior Junior Loan Agreement, (xv) release its lien on any
material portion of the collateral originally granted under the applicable Senior
Junior Loan Documents (except as may be required in accordance with the terms
of the Senior Loan Documents, the more senior Senior Junior Loan Documents or
the applicable Senior Junior Loan Documents), (xvi) amend or modify the
definition of Event of Default under the applicable Senior Junior Loan
Documents, (xvii) impose any additional fees upon the applicable Senior
Junior Borrower that would be required to be paid on a periodic or regular
basis, (xviii) add provisions which would prohibit or restrict any other
Junior Lender (or any transferee of an interest in any other Junior Loan) from
acquiring the interest of the applicable Senior Junior Borrower by foreclosure
of the applicable Equity Collateral or (xix) impose any financial
covenants on the applicable Senior Junior Borrower (or if such covenants exist,
impose more restrictive financial covenants on the Senior Junior
Borrower).  In addition and
notwithstanding the foregoing provisions of this Section 8(c),
(a) any amounts funded by a Senior Junior Lender under its respective
Senior Junior Loan Documents as a result of (1) the making of any
Protective Advances or other advances by such Senior Junior Lender expressly
permitted by the terms of its Senior Junior Loan Documents as of the date
hereof or (2) interest accruals or accretions and any compounding thereof
(including default interest) shall not be deemed to contravene this Section 8(c);
provided, however, in no event shall the applicable Senior Junior
Lender be obligated to obtain any Subordinate Junior Lender’s consent to a
Senior Junior Loan Modification prohibited above in the case of a workout or
other surrender, extension, compromise, release, renewal, or indulgence
relating to the applicable Senior Junior Loan following the occurrence and
continuance of an Event of Default under the applicable Senior Junior Loan
Documents, except, that (A) under no condition shall the principal balance
of the applicable Senior Junior Loan be increased in violation of item (i) above
(with respect to increase in principal amount only) or the provisions of item
(viii), (xi) (with respect to permitting additional indebtedness), (xiii),
(xvii), (xviii) or (xix) above be violated, without in each case the
prior written consent of each of the Subordinate Junior Lenders and (B) during
any Junior Loan Monetary Cure Period, Junior Loan Extended Monetary Cure
Period, Junior Loan Non-Monetary Cure Period or Junior Loan Extended
Non-Monetary Cure Period, provided that each Subordinate Junior Lender
is in compliance with the provisions of Section 6 above, the
applicable Senior Junior Lender will not violate the other provisions of items (i) through
(xix) above without the prior written consent of each Subordinate Junior
Lender.

 

(d)           Senior Lender shall deliver to Junior Lenders promptly upon
execution thereof, copies of any and all modifications, amendments, extensions,
consolidations, spreaders, restatements, alterations, changes or revisions to
any one or more of the Senior Loan

 

51

 

Documents (including, without limitation, any side
letters, waivers or consents entered into, executed or delivered by Senior
Lender).

 

(e)           Each Junior Lender shall deliver to Senior Lender and the
other Junior Lenders promptly upon execution thereof, copies of any and all
modifications, amendments, extensions, consolidations, spreaders, restatements,
alterations, changes or revisions to any one or more of its respective Junior
Loan Documents (including, without limitation, any side letters, waivers or
consents entered into, executed or delivered by such Junior Lender).

 

(f)            Each Junior Lender shall consent to the amendment or
modification of a Junior Borrower’s organizational documents upon request by
Senior Lender and/or the applicable Senior Junior Lender in order to satisfy
requests made by Rating Agencies rating any Certificates, provided that such
amendment or modification does not have a material adverse effect on the Junior
Loan and the costs and expenses thereof are not payable by such Junior Lender.

 

Section 9.               Subordination of Junior Loans
and Junior Loan Documents. 
(a)  Except as otherwise provided in this Agreement, each
Junior Lender hereby subordinates and makes junior the Junior Loan held by such
Junior Lender, the related Junior Loan Documents and the liens and security
interests created thereby, and all rights, remedies, terms and covenants
contained therein to (i) the Senior Loan and the applicable Senior Junior
Loans, (ii) the liens and security interests created by the Senior Loan Documents
and the applicable Senior Junior Loan Documents, and (iii) all of the
terms, covenants, conditions, rights and remedies contained in the Senior Loan
Documents and the applicable Senior Junior Loan Documents and no extensions,
modifications, consolidations, supplements, amendments, replacements and
restatements of and/or to the Senior Loan Documents or the applicable Senior
Junior Loan Documents that are permitted by Section 8 shall affect
the subordination thereof as set forth in this Section 9.  Senior Lender and the Junior Lenders each
hereby acknowledge and agree except as set forth in Section 6(b) hereof,
that:

 

(A)          Senior Lender has not acquired, and shall not hereafter
acquire, any lien on, or any other interest whatsoever in the Separate
Collateral relating to any Junior Loan that is held by the related Junior
Lender, or any part thereof and that collection from such Separate Collateral
(including any Guaranty Claim), the exercise of remedies and realization upon
such Separate Collateral by such Junior Lender or any applicable Loan Pledgee
and the application of proceeds therefrom as such Junior Lender deems
appropriate in its discretion are, except as set forth in Section 6(b) hereof,
expressly permitted and shall not constitute a default or an event of default
under this Agreement, the Senior Loan Documents or the applicable Junior Loan
Documents;

 

(B)           No other property of a Junior Borrower is collateral for
the Senior Loan;

 

(C)           No Senior Junior Lender has acquired, and no Senior Junior
Lender shall hereafter acquire, any lien on, or any other interest whatsoever
in the Separate Collateral relating solely to any Subordinate Junior Loan that
is

 

52

 

held by the related
Subordinate Junior Lender, or any part thereof and that collection from any
such Separate Collateral (including any Guaranty Claim), the exercise of
remedies and realization upon such Separate Collateral by such Subordinate
Junior Lender or any applicable Loan Pledgee and the application of proceeds
therefrom as such Subordinate Junior Lender deems appropriate in its discretion
are, except as set forth in Section 6(b) hereof, expressly
permitted and shall not constitute a default or an event of default under this
Agreement, the applicable Senior Junior Loan Documents or the applicable
Subordinate Junior Loan Documents;

 

(D)          No property of the applicable Subordinate Junior Borrower
is collateral for any Senior Junior Loan;

 

(E)           No Junior Borrower has any legal obligations to pay the
Senior Loan or to render any other performance under the Senior Loan Documents
and no Junior Borrower has any legal obligations to pay any other Junior Loan
or to render any other performance under the Junior Loan Documents for any
other Junior Loan; and

 

(F)           Senior Lender is not a creditor of any Junior Borrower and
no more senior Senior Junior Lender is a creditor of any other more junior
Subordinate Junior Borrower.

 

(b)           Except with respect to the Separate Collateral or any
Guaranty, every document and instrument included within the Junior Loan
Documents shall be subject and subordinate to each and every document and
instrument included within the Senior Loan Documents and the applicable Senior
Junior Loan Documents and all extensions, modifications, consolidations, supplements,
amendments, replacements and restatements of and/or to the Senior Loan
Documents and the applicable Senior Junior Loan Documents to the extent such
extensions, modifications, consolidations, supplements, amendments,
replacements and restatements are permitted by the terms hereof.

 

Section 10.             Payment Subordination.  (a)  Except (i) as otherwise
expressly provided in this Agreement and (ii) in connection with the
exercise by a Junior Lender of its rights and remedies with respect to the
Separate Collateral (or, subject to the terms of Section 6(b) hereof,
any Guaranty Claim) in accordance with the terms of this Agreement and the
application of the proceeds therefrom as Junior Lender deems appropriate in its
discretion, (x) all of such Junior Lender’s rights to payment of the
Junior Loan held by such Junior Lender and the obligations evidenced by the
related Junior Loan Documents are hereby subordinated to all of Senior Lender’s
rights to payment by Borrower of the Senior Loan and the obligations secured by
the Senior Loan Documents, and such Junior Lender shall not accept or receive
payments (including, without limitation, whether in cash or other property and
whether received directly, indirectly or by set-off, counterclaim or otherwise,
but excluding, the proceeds received from any bona fide third party in
connection with a secured party sale of such Junior Lender’s Equity Collateral,
which may be retained by such Junior Lender) from Borrower and/or from the
Premises prior to the date that all of the Senior Loan Liabilities then due to
Senior Lender under the Senior Loan Documents are paid in full and (y) all
of such

 

53

 

Junior Lender’s rights to payment of the Junior Loan
held by such Junior Lender and the obligations evidenced by the related Junior
Loan Documents are hereby subordinated to all of the applicable Senior Junior
Lender’s rights to payment by the applicable Senior Junior Borrowers of the
applicable Senior Junior Loans and the obligations secured by the applicable
Senior Junior Loan Documents, and such Junior Lender shall not accept or
receive payments (including, without limitation, whether in cash or other
property and whether received directly, indirectly or by set-off, counterclaim
or otherwise, but excluding, the proceeds received from any bona fide third
party in connection with a secured party sale of such Junior Lender’s Equity
Collateral, which may be retained by such Junior Lender) from Borrower, the
Premises, from the applicable Senior Junior Borrower and/or the proceeds from
items identified in clauses (i) or (ii) of the definition of
Separate Collateral (but excluding, the proceeds received from any bona fide
third party in connection with a secured party sale of such Junior Lender’s
Equity Collateral or any Guaranty Claim) securing or guaranteeing the
applicable Senior Junior Loans prior to the date that all obligations of the
applicable Senior Junior Borrowers then due to the applicable Senior Junior
Lenders under the applicable Senior Junior Loan Documents are paid in full.

 

(b)           If (i) a Proceeding with respect to Senior Borrower
shall have occurred and has not been dismissed or (ii) there shall have
occurred and be continuing an Event of Default under the Senior Loan Documents,
after giving effect to Junior Lender’s cure rights pursuant to Section 12,
except as expressly otherwise provided herein, Senior Lender shall be entitled
to receive payment and performance in full of all amounts due or to become due
to Senior Lender before any Junior Lender is entitled to receive any payment
(including any payment which may be payable by reason of the payment of any
other indebtedness of Senior Borrower being subordinated to the payment of the
Junior Loans) on account of any Junior Loan (other than payments with respect
to a Junior Lender’s Separate Collateral permitted pursuant to this
Agreement).  If (i) a Proceeding
with respect to Senior Junior Borrower shall have occurred and has not been
dismissed or (ii) there shall have occurred and be continuing an Event of
Default under the Senior Junior Loan Documents, after giving effect to
Subordinate Junior Lender’s cure rights pursuant to Section 12, the
Senior Junior Lender holding the applicable Senior Junior Loan shall be
entitled to receive payment and performance in full of all amounts due or to
become due to such Senior Junior Lender before any applicable Subordinate
Junior Lender is entitled to receive any payment (including any payment which
may be payable by reason of the payment of any other indebtedness of any Junior
Borrower being subordinated to the payment of the applicable Senior Junior
Loans) on account of any applicable Subordinate Junior Loan (other than
payments with respect to any applicable Subordinate Junior Lender’s Separate
Collateral permitted pursuant to this Agreement).  All payments or distributions upon or with
respect to a Junior Loan which are received by a Junior Lender contrary to the
provisions of this Agreement shall be received by such Junior Lender in trust
for the benefit of Senior Lender and the applicable Senior Junior Lenders to
the extent payable to Senior Lender or the applicable Senior Junior Lenders and
shall be paid within two (2) Business Days of receipt thereof over first
to Senior Lender to the extent then payable to Senior Lender and then to the
applicable Senior Junior Lenders in the same form as so received (with any
necessary endorsement) to be applied (in the case of cash) to, or held as
collateral (in the case of non-cash property or securities) for, the payment or
performance first of the Senior Loan Liabilities in accordance with the terms
of the Senior Loan Documents and then for, the payment or performance of the
applicable Senior Junior Loan Liabilities in accordance with the

 

54

 

terms of the Senior Junior Loan Documents.  Nothing contained herein shall prohibit a
Junior Lender from making Protective Advances (and adding the amount thereof to
the principal balance of its Junior Loan) notwithstanding the existence of a
default under the Senior Loan at such time.

 

(c)           Notwithstanding anything to the contrary contained in this
Agreement, including, without limitation, Sections 10(a) and (b),
provided that (x) after giving effect to each Junior Lender’s cure
rights pursuant to Section 12 hereof, no Event of Default shall
exist and be continuing under the Senior Loan Documents or the applicable
Senior Junior Loan Documents, or Junior Lender shall be pursuing its rights
with respect to an Extended Non-Monetary Cure Period in accordance with and
subject to the terms and conditions set forth in Section 12 of this
Agreement with respect thereto and (y) the maturity date of the Senior
Loan and the applicable Senior Junior Loan (in each case, as the same may be
extended) has not occurred or been accelerated (unless following any such
acceleration the Senior Loan and/or the applicable Senior Junior Loan was
reinstated and no Event of Default exists thereunder):

 

(i)            a Junior Lender may accept and retain current and
delinquent payments due and payable from time to time which the applicable
Junior Borrower is obligated to pay to such Junior Lender, or prepayments
permitted to be made by such Junior Borrower, in either case in accordance with
the terms and conditions of the applicable Junior Loan Documents.  If funds are distributed to a Junior Lender
in accordance with the Senior Loan Documents or the applicable Senior Junior
Loan Documents, Senior Lender and the applicable Senior Junior Lender agrees
that, absent clear evidence of error, such distribution shall be deemed to have
been properly paid to such Junior Lender and may be accepted and retained by
such Junior Lender;

 

(ii)           a Junior Lender may accept and retain amounts received in
connection with the exercise of its rights and remedies with respect to the
Separate Collateral (or, subject to the terms of Section 6(b) hereof,
any Guaranty Claim) in accordance with this Agreement; and

 

(iii)          a Junior Lender may accept and retain prepayments of its
respective Junior Loan, together with any prepayment fee payable pursuant to
such Junior Loan Documents, from funds other than those funds held in the
Senior Cash Management Account (as defined in the Senior Loan Agreement) or any
applicable Senior Junior Loan Cash Management Account.

 

(d)           Subject to the terms and provisions of Section 6
hereof, a Junior Lender may, in its sole and absolute discretion without Senior
Lender’s or any Senior Junior Lender’s consent, take any Equity Collateral
Enforcement Action or Separate Collateral Enforcement Action; provided, however,
(i) such Junior Lender shall, prior to commencing any Equity Collateral
Enforcement Action, give the Senior Lender and the applicable Senior Junior
Lenders written notice of the default which would permit such Junior Lender to
commence such Equity Collateral Enforcement Action, as well as provide Senior
Lender and the applicable Senior Junior Lenders with copies of any and all
material notices, pleadings, agreements, motions and briefs served upon,
delivered to or with any party to any Equity

 

55

 

Collateral Enforcement Action, (ii) such Junior
Lender shall keep the Senior Lender and the applicable Senior Junior Lenders
reasonably apprised as to the status of any Equity Collateral Enforcement
Action and (iii) if and to the extent that a Qualified Transferee acquires
all of the ownership interests in an applicable Junior Borrower pursuant to an
Equity Collateral Enforcement Action in accordance with the terms of this
Agreement, then upon, from and after the vesting of title thereto, such Junior
Lender’s rights pursuant to Section 12 and Section 14
and the obligations of Senior Lender and the applicable Senior Junior Lenders
pursuant to Section 12 and Section 14 with respect to
such Junior Lender shall be null and void and of no further force and effect
and every other provision in this Agreement which references such Sections,
rights or obligations shall thereafter be read as if such reference, right or
obligation were not contained or specified therein with respect to such Junior
Lender.  Nothing in this Agreement is
intended to create and this Agreement does not create any security interest by
any Junior Lender in favor of Senior Lender and the applicable Senior Junior
Lenders and shall not constitute a guarantee by any Junior Lender of its
respective Junior Borrower’s obligations under the applicable Junior Loan
Documents.

 

(e)           In the event of a casualty to the buildings or
improvements constructed on any portion of the Premises or a condemnation or
taking under a power of eminent domain of all or any portion of the Premises,
the buildings or improvements thereon, Senior Lender shall have a first and
prior interest in and to any payments, awards, proceeds, distributions, or
consideration arising from any such event after deducting the costs of
collection (the “Award”), provided that if
the amount of the Award is in excess of the Adjusted Release Amount (as defined
in the Senior Loan Agreement) due the Senior Lender under the Senior Loan
Documents, such excess Award or portion to be so remitted shall be applied, to
the extent permitted under the Senior Loan Documents, as follows:  (i) first, to the First Mezzanine Lender
in the amount of the First Mezzanine Adjusted Release Amount (as defined in the
Senior Loan Agreement) due the First Mezzanine Lender under the First Mezzanine
Loan Documents, (ii) second, to the Second Mezzanine Lender in the amount
of the Second Mezzanine Adjusted Release Amount (as defined in the Senior Loan
Agreement) due the Second Mezzanine Lender under the Second Mezzanine Loan
Documents, (iii) third, to the Third Mezzanine Lender in the amount of the
Third Mezzanine Adjusted Release Amount (as defined in the Senior Loan
Agreement) due the Third Mezzanine Lender under the Third Mezzanine Loan
Documents, (iv) fourth, to the Fourth Mezzanine Lender in the amount of
the Fourth Mezzanine Adjusted Release Amount (as defined in the Senior Loan
Agreement) due the Fourth Mezzanine Lender under the Fourth Mezzanine Loan
Documents, (v) fifth, to the Fifth Mezzanine Lender in the amount of the
Fifth Mezzanine Adjusted Release Amount (as defined in the Senior Loan
Agreement) due the Fifth Mezzanine Lender under the Fifth Mezzanine Loan
Documents, (vi) sixth, to the Sixth Mezzanine Lender in the amount of the
Sixth Mezzanine Adjusted Release Amount (as defined in the Senior Loan
Agreement) due the Sixth Mezzanine Lender under the Sixth Mezzanine Loan
Documents, (vii) seventh, to the Seventh Mezzanine Lender in the amount of
the Seventh Mezzanine Adjusted Release Amount (as defined in the Senior Loan
Agreement) due the Seventh Mezzanine Lender under the Seventh Mezzanine Loan
Documents, and (viii) eighth, to Senior Borrower.  In the event of any competing claims, Senior
Lender shall continue to hold such excess Award until Senior Lender receives an
agreement signed by all parties making a claim to the excess Award or a final
order of a court of competent jurisdiction directing Senior Lender as to how
the excess Award is to be distributed. 
Notwithstanding the foregoing, in the event of a casualty or

 

56

 

condemnation, Senior Lender shall release the Awards
in any such event to Senior Borrower if and to the extent required by the terms
and conditions of the Senior Loan Documents in order to repair and restore the
Premises or any portion thereof in accordance with the terms and provisions of
the Senior Loan Documents.  Awards made
available to Senior Borrower for the repair or restoration of the Premises or
any portion thereof shall not be subject to attachment by any Junior Lender,
but this sentence is not intended to otherwise affect any lien, if any, that a
Junior Lender may have upon such proceeds. 
Senior Lender shall use reasonable efforts to promptly (x) notify
each Junior Lender of any requests by Senior Borrower for the release of any
Award and (y) provide each Junior Lender with any documentation delivered
by Senior Borrower to Senior Lender with respect to any such request by Senior
Borrower for the release of any Award.

 

(f)            With respect to any insurance policies (collectively, the
“Policies”) for the Premises for which a
Junior Lender and/or its Affiliate are identified as “named insureds” or “additional
insureds”, until such time as the Senior Loan has been paid in full, each
Junior Lender acknowledges and agrees that no Junior Lender nor any of its
Affiliates shall have any right whatsoever to (i) contest or challenge (in
their capacity as named insureds) any such settlement or adjustment approved by
Senior Lender, (ii) disapprove any settlement or adjustment of any claim
or any distribution of proceeds under the Policies approved by Senior Lender,
or (iii) be issued checks, drafts or wires (jointly or otherwise) representing
proceeds of the Policies.  Nothing
contained in this subparagraph (f) is meant to limit any rights that
a Junior Lender has under its respective Junior Loan Documents to approve of
any action taken by the applicable Junior Borrower.  Senior Lender shall, at a Junior Lender’s
request, advise such Junior Lender from time to time as to the status of any
settlement or adjustment of any claim or any distribution of proceeds under the
Policies.

 

Section 11.             Rights of Subrogation;
Bankruptcy.

 

(a)           Marshalling of Assets and Information.  Each Junior Lender and Senior Lender hereby
waives any requirement for marshaling of assets hereby or the right to assert
that an election of remedies has occurred in connection with any foreclosure of
any security interest or any other realization upon collateral in respect of
the Senior Loan Documents or the Junior Loan Documents, as applicable, or any
exercise of any rights of set-off or otherwise. 
Each of the Junior Lenders and Senior Lender assumes all responsibility
for keeping itself informed as to the condition (financial or otherwise) of
Senior Borrower, each Junior Borrower, the condition of the Premises and all
other collateral and other circumstances and, except for notices expressly
required by this Agreement, neither Senior Lender nor any Junior Lender shall
have any duty whatsoever to obtain, advise or deliver information or documents
to the others relative to such condition, business, assets and/or operations.

 

(b)           Fiduciary Duties. 
Each Junior Lender agrees that Senior Lender owes no fiduciary duty to
any Junior Lender in connection with the administration of the Senior Loan and
the Senior Loan Documents and each Junior Lender agrees not to assert any such
claim.  Senior Lender agrees that none of
the Junior Lenders owes any fiduciary duty to Senior Lender in connection with
the administration of the Junior Loans and the Junior Loan Documents and Senior
Lender agrees not to assert any such claim. 
Each Junior Lender agrees that no Junior Lender owes any fiduciary duty
to any other Junior Lenders in connection with

 

57

 

the administration of a Junior Loan and the related
Junior Loan Documents and each Junior Lender agrees not to assert any such
claim.

 

(c)           Payments, Distributions and Protective Advances.  No payment or distribution to Senior Lender
pursuant to the provisions of this Agreement and no Protective Advance by a
Junior Lender and no other action taken by a Junior Lender to cure any default
under the Senior Loan Documents shall entitle such Junior Lender to exercise
any right of subrogation in respect thereof or provide such Junior Lender with
any claim against Senior Borrower, in each case, prior to the payment in full
of the Senior Loan Liabilities, and each of the Junior Lenders agrees that,
except with respect to the enforcement of its remedies under the Junior Loan
Documents related to the Junior Loan held by such Junior Lender permitted
hereunder, prior to the satisfaction of all Senior Loan Liabilities it shall
not acquire, by subrogation or otherwise, any lien, estate, right or other
interest in any portion of the Premises or any other collateral now securing
the Senior Loan or the proceeds therefrom that is or may be prior to, or of
equal priority to, any of the Senior Loan Documents or the liens, rights,
estates and interests created thereby. 
No payment or distribution to any applicable Senior Junior Lender
pursuant to the provisions of this Agreement and no Protective Advance by a
Junior Lender and no other action taken by a Junior Lender to cure any default
under the Senior Junior Loan Documents shall entitle such Junior Lender to
exercise any right of subrogation in respect thereof prior to the payment in
full of the applicable Senior Junior Loan Liabilities, and each Junior Lender
agrees that, except with respect to the enforcement of its remedies under the
Junior Loan Documents related to the Junior Loan held by such Junior Lender
permitted hereunder, prior to the satisfaction of all applicable Senior Junior
Loan Liabilities it shall not acquire, by subrogation or otherwise, any lien,
estate, right or other interest in any portion of the Premises, the Separate
Collateral of any applicable Senior Junior Lender or any other collateral now
securing the Senior Loan or any applicable Senior Junior Loan or the proceeds
therefrom that is or may be prior to, or of equal priority to, any of the
applicable Senior Junior Loan Documents or the Senior Loan Documents or the
liens, rights, estates and interests created thereby.

 

(d)           Bankruptcy. 
(i) Subject to Section 31 of this Agreement, the
provisions of this Agreement shall be applicable both before and after the
commencement, whether voluntary or involuntary, of any case, proceeding or
other action by or against Senior Borrower, any Junior Borrower or any SPE
Constituent Entity under any existing or future law of any jurisdiction
relating to bankruptcy, insolvency, reorganization or relief of debtors or any
assignment by Borrower for the benefit of creditors (a “Proceeding”).

 

(i)            For as long as the Senior Loan shall remain outstanding,
none of the Junior Lenders shall solicit, direct or cause Borrower or any other
entity which Controls Senior Borrower (the “Borrower
Group”) or any other Person to: 
(1) commence any Proceeding against Senior Borrower or any SPE
Constituent Entity; (2) institute proceedings to have Senior Borrower or
any SPE Constituent Entity adjudicated a bankrupt or insolvent;
(3) consent to, or acquiesce in, the institution of bankruptcy or
insolvency proceedings against Senior Borrower or any SPE Constituent Entity;
(4) file a petition or consent to the filing of a petition seeking
reorganization, arrangement, adjustment, winding-up, dissolution, composition,
liquidation or other relief by or on behalf of Senior Borrower or any SPE
Constituent Entity; (5) seek or consent to the

 

58

 

appointment of a receiver,
liquidator, assignee, trustee, sequestrator, custodian or any similar official
for Senior Borrower or any SPE Constituent Entity or a substantial portion of
any of its respective property, including without limitation, the Premises, or
any portion thereof, and any other collateral securing the Senior Loan, or any
portion thereof; (6) make an assignment for the benefit of any creditor of
Senior Borrower or any SPE Constituent Entity; (7) seek to consolidate the
Premises or any other assets of Senior Borrower or any SPE Constituent Entity
with the assets of any Junior Borrower or any member of the Borrower Group in
any proceeding relating to bankruptcy, insolvency, reorganization or relief of
debtors; (8) seek to consolidate Senior Borrower with any Junior Borrower
or any member of Borrower Group; or (9) take any action in furtherance of
any of the foregoing.  The terms and
provisions of this Section 11(d) apply to each Junior Lender
solely in its respective capacity as a Junior Lender.  If any Junior Lender commences an Equity
Collateral Enforcement Action against any Junior Borrower, and pursuant to such
Equity Collateral Enforcement Action, such Junior Lender takes title to the
Equity Collateral of such Junior Borrower, from and after the date title to
such Equity Collateral is vested in such Junior Lender (as applicable), such
Junior Lender shall be bound by the terms and provisions of the respective
organizational documents of such Junior Borrower regarding bankruptcy and all
matters requiring the vote of the independent directors/managers/members of
such Junior Borrower.  Subject to the limitations
set forth herein, each Junior Lender will have the right to appear in such
Proceeding to protect its interest in the relevant Equity Collateral, in the
Junior Lender’s capacity as pledgee of the Equity Collateral.

 

(ii)           In the event that a Junior Lender is deemed to be a
creditor of Senior Borrower in any Proceeding: 
(1) each of the Junior Lenders hereby agrees that it shall not make
any election, give any consent, commence any action or file any motion, claim,
obligation, notice or application or take any other action in any Proceeding by
or against Senior Borrower or any SPE Constituent Entity without the prior
consent of Senior Lender, except to the extent necessary to preserve or realize
upon such Junior Lender’s interest in any Separate Collateral pledged to such
Junior Lender pursuant to the Junior Loan Documents related to the Junior Loan
held by such Junior Lender; provided, however, that any such
filing shall not be as a creditor of the Senior Borrower; (2) Senior
Lender may vote in any such Proceeding any and all claims of such Junior
Lender, and each of the Junior Lenders hereby appoints the Senior Lender as its
agent, and grants to the Senior Lender an irrevocable power of attorney coupled
with an interest, and its proxy, for the purpose of exercising any and all
rights and taking any and all actions available to such Junior Lender in
connection with any case by or against Senior Borrower or any SPE Constituent
Entity in any Proceeding, including without limitation, the right to file and/or
prosecute any claims, to vote to accept or reject a plan, to make any election
under Section 1111(b) of the Bankruptcy Code, provided, however,
that with respect to any proposed plan of reorganization in respect of which
creditors are voting, Senior Lender may vote on behalf of such Junior Lender
only if the proposed plan would result in Senior Lender being “impaired” (as
such term is defined in the United States Bankruptcy Code); and (3) no
Junior Lender shall challenge the validity or amount of any claim submitted in
such Proceeding by Senior Lender in good faith or any valuations of the
Premises, or any portion thereof, or other Senior Loan collateral submitted by
Senior Lender in good faith, in such

 

59

 

Proceeding or take any other
action in such Proceeding, which is adverse to Senior Lender’s enforcement of
its claim or receipt of adequate protection (as that term is defined in the
Bankruptcy Code); provided, however that no such valuations
submitted in such Proceeding by Senior Lender shall be binding upon any Junior
Lender in any Proceeding concerning any other Person, including, without
limitation, any Junior Borrower, any member of the Junior Borrower Group, or
any Affiliate thereof.  Prior to Securitization
of the Senior Loan (or after a Securitization of the Senior Loan if Senior
Lender owns all of the Certificates), Senior Lender shall not have the rights
provided in this Section 11(d)(iii) if Senior Lender is an
Affiliate of Senior Borrower.

 

(iii)          For as long as any
applicable Senior Junior Loan with respect to a Junior Lender shall remain
outstanding, such Junior Lender shall not, and shall not solicit any Person to,
and shall not direct or cause the Junior Borrower under the Junior Loan held by
such Junior Lender to direct or cause such Junior Borrower or any entity which
Controls such Junior Borrower (as applicable, the “Junior
Borrower Group”) to: 
(1) commence any Proceeding against any applicable Senior Junior
Borrower; (2) institute proceedings to have any applicable Senior Junior
Borrower adjudicated a bankrupt or insolvent; (3) consent to, or acquiesce
in, the institution of bankruptcy or insolvency proceedings against any
applicable Senior Junior Borrower; (4) file a petition or consent to the
filing of a petition seeking reorganization, arrangement, adjustment,
winding-up, dissolution, composition, liquidation or other relief by or on
behalf of any applicable Senior Junior Borrower; (5) seek or consent to
the appointment of a receiver, liquidator, assignee, trustee, sequestrator,
custodian or any similar official for any applicable Senior Junior Borrower,
Separate Collateral for any applicable Senior Junior Loan (or any portion
thereof) or any other collateral securing any applicable Senior Junior Loan (or
any portion thereof); (6) make an assignment for the benefit of any
creditor of any applicable Senior Junior Borrower; (7) seek to consolidate
the Separate Collateral for any applicable Senior Junior Loan (or any portion
thereof) or any other assets of any applicable Senior Junior Borrower with the
assets of the Junior Borrower under the Junior Loan held by such Junior Lender
or any member of the applicable Junior Borrower Group in any proceeding
relating to bankruptcy, insolvency, reorganization or relief of debtors;
(8) seek to consolidate any applicable Senior Junior Borrower with any
Subordinate Junior Borrower or any member of Junior Borrower Group for a
Subordinate Junior Borrower; or (9) take any action in furtherance of any
of the foregoing.

 

(iv)          In the event that a Junior
Lender is deemed to be a creditor of any applicable Senior Junior Borrower in
any Proceeding:  (1) such Junior
Lender hereby agrees that it shall not make any election, give any consent,
commence any action or file any motion, claim, obligation, notice or
application or take any other action in any Proceeding by or against any
applicable Senior Junior Borrower without the prior consent of the applicable
Senior Junior Lenders, except to the extent necessary to preserve or realize
upon its interest in the Equity Collateral; provided, however,
that any such filing shall not be as a creditor of any applicable Junior
Borrower; (2) the applicable Senior Junior Lenders in their respective
order of priority may vote in any such Proceeding any and all claims of such
Junior Lender, and such Junior Lender hereby appoints the applicable Senior
Junior Lenders in their respective order of 

 

60

 

priority as its agent, and
grants to the applicable Senior Junior Lenders in their respective order of
priority an irrevocable power of attorney coupled with an interest, and its
proxy, for the purpose of exercising any and all rights and taking any and all
actions available to the applicable Senior Junior Lenders in connection with
any case by or against the applicable Senior Junior Borrowers in any
Proceeding, including without limitation, the right to file and/or prosecute
any claims, to vote to accept or reject a plan, to make any election under
Section 1111(b) of the Bankruptcy Code, provided, however,
that with respect to any proposed plan of reorganization in respect of which
creditors are voting, the applicable Senior Junior Lenders in their respective
order of priority may vote on behalf of such Junior Lender only if the proposed
plan would result in such applicable Senior Junior Lender being “impaired” (as
such term is defined in the United States Bankruptcy Code); and (3) such
Junior Lender shall not challenge the validity or amount of any claim submitted
in such Proceeding by any applicable Senior Junior Lender in good faith or any
valuations of the Separate Collateral for such Senior Junior Lender’s Senior
Junior Loan or other collateral for such applicable Senior Junior Loan submitted
by such applicable Senior Junior Lender in good faith, in such Proceeding or
take any other action in such Proceeding, which is adverse to enforcement by
any applicable Senior Junior Lender of its claim or receipt of adequate
protection (as that term is defined in the Bankruptcy Code); provided, however
that no such valuations submitted in such Proceeding by Senior Junior Lender
shall be binding upon any Junior Lender in any Proceeding concerning any other
Person, including, without limitation, any Junior Borrower, any member of the
Junior Borrower Group, or any Affiliate thereof.  No Senior Junior Lender shall have the rights
provided in this Section 11(d)(v) if such Senior Junior Lender
is an Affiliate of Borrower.

 

(v)           The terms and provisions of
this Section 11(d) apply to each Junior Lender solely in its
capacity as a Junior Lender.

 

Section 12.             Rights of Cure.

 

(a)           Senior Loan Default.  Prior to Senior Lender commencing any
Enforcement Action under the Senior Loan Documents, Senior Lender shall provide
written notice of such default to each Junior Lender and any Loan Pledgee
entitled to notice thereof pursuant to Section 16 of this
Agreement, whether or not Senior Lender is obligated to give notice thereof to
Senior Borrower (each, a “Senior Loan Default Notice”).  In the event Senior Lender has delivered a
Senior Loan Default Notice pursuant to Sections 12(a)(i) or (ii) below
which has not been cured by a Junior Lender, Senior Lender shall provide the
Junior Lenders with copies of any and all material notices relating to such
Event of Default, pleadings, agreements, motions and briefs served upon,
delivered to or with any party to any Enforcement Action and otherwise keep the
Junior Lenders reasonably apprised as to the current status of any Enforcement
Action.  Prior to or concurrently with
undertaking any curative action with respect to the Senior Loan, a Junior
Lender shall provide the other Junior Lenders with written notice thereof.  Senior Lender shall permit the Junior Lenders
an opportunity to cure such default in accordance with the following terms:

 

61

 

(i)            Monetary Default.  If the default identified in the Senior Loan
Default Notice is a monetary default relating to (1) any scheduled payment
of principal or interest, or (2) the payment of any other liquidated sum
of money, Junior Lenders shall have until ten (10) Business Days after the
later of (a) the receipt (or deemed receipt) of the Senior Loan Default
Notice or (b) expiration of the Senior Borrower’s cure period, if any, to
cure such monetary default (a “Monetary Cure Period”);
provided, however, that in the event a Junior Lender elects to
cure such monetary default, such Junior Lender hereby agrees (x) to
indemnify, defend and hold harmless Senior Lender for all cost, expenses,
losses, liabilities, obligations, damages, penalties, and disbursements arising
under any pooling and servicing agreement applicable to the Senior Loan to the
extent imposed on, incurred by or asserted against Senior Lender due to or
arising from such Monetary Cure Period, (y) without duplication of the
foregoing, to reimburse Senior Lender for any interest charged by Senior Lender
or the servicer on any advances for monthly payments of principal and/or
interest on the Senior Loan and/or on any Protective Advances during the
Monetary Cure Period arising under the applicable pooling and servicing
agreement, and (z) if the monetary default is not cured within the
Monetary Cure Period but is thereafter cured by a Junior Lender, to pay Senior
Lender the excess of interest accruing at the Default Rate (without
duplication) over interest accruing at the Interest Rate under the Senior Loan
for the number of days beyond the expiration of such Monetary Cure Period that
the default to which such Monetary Cure Period related continued uncured, less
any amounts paid by such Junior Lender under (y) above.  A Junior Lender shall not be required, in
order to effect a cure hereunder during the Monetary Cure Period, to pay any
late charges or (other than the cure by a Junior Lender of a default in the
payment of the Senior Loan in full on the maturity date thereof) any interest
at the Default Rate under the Senior Loan Documents (irrespective of any cure
of such default by a Junior Lender pursuant to the provisions of this
Agreement), and no late charges or interest at the Default Rate shall accrue
against such Junior Lender for such period. 
There shall be no right to cure as hereinabove set forth with respect to
monthly scheduled interest and principal payments for a period of more than six
(6) consecutive months (regardless of which Junior Lender has cured such
monetary default) unless such Junior Lender seeking to cure beyond such six (6) month
period has commenced and is continuing to diligently pursue its rights against
such Junior Lender’s Equity Collateral, in which case such Junior Lender shall
be entitled to continue curing such monetary defaults involving monthly
scheduled interest and principal payments until the occurrence of any voluntary
or involuntary Proceeding involving Senior Borrower (such additional monetary
cure period, an “Extended Monetary Cure Period”).  In the event more than one Junior Lender
cures any monetary default in accordance with the terms of this Section, Senior
Lender hereby agrees (x) to accept the cure from the junior most Junior
Lender and (y) to return to any Senior Junior Lender(s) within three (3) Business
Days of accepting such cure from the junior most Junior Lender any funds
tendered by the Senior Junior Lender(s). 
The cure period for a Junior Lender with respect to a monetary default
shall run concurrently with the cure period for the other Junior Lenders with
respect to such monetary default and in no event sequentially.  Notwithstanding the foregoing, if one Junior
Lender has satisfied the conditions for an Extended Monetary Cure Period with
respect to defaults involving monthly scheduled 

 

62

 

interest and principal
payments as set forth above and thereafter ceases to qualify for such Extended
Monetary Cure Period (either by failing to make cure payments or failing to
diligently pursue its rights against its Equity Collateral) then (A) such
Junior Lender’s cure rights with respect to all monetary defaults shall
immediately terminate (unless Borrower shall have cured all defaults and
reinstated the Senior Loan in good standing) and (B) notwithstanding any
of the other Junior Lender’s earlier election not to cure the defaults
involving monthly scheduled interest and principal payments, such other Junior
Lenders shall be entitled to succeed to all rights under the existing Extended
Monetary Cure Period, upon written notice to the Senior Lender, so long as such
other Junior Lender promptly commences and thereafter diligently pursues its
rights against its Equity Collateral, makes all cure payments and otherwise
satisfies the provisions of this Section 12.  If the default referenced in a Senior Loan
Default Notice has been cured such that there is no longer an Event of Default
under the Senior Loan Documents, the Junior Lenders shall have the same
Monetary Cure Period with respect to any future Senior Loan Default Notice.

 

(ii)           Non-Monetary Default.  If the default is of a non-monetary nature
(for so long as such non-monetary default is not caused by a Proceeding of
Senior Borrower or during such Non-Monetary Cure Period (as defined herein) a
Proceeding of Senior Borrower does not occur), each Junior Lender shall have
until the later of (a) ten (10) Business Days from the receipt (or
deemed receipt) of the Senior Loan Default Notice and (b) the expiration
of the Senior Borrower’s cure period to cure such non-monetary default (a “Non-Monetary Cure Period”); provided, however,
if such non-monetary default cannot reasonably be cured within such period or
if no cure period is provided and, if applicable, curative action was commenced
by such Junior Lender within the Non-Monetary Cure Period and, if there is a
cure period, is being diligently pursued by a Junior Lender (or with respect to
a non-monetary default that is not susceptible of cure, if a Junior Lender
shall be diligently pursuing the foreclosure of its Equity Collateral and such
non-monetary default does not materially impair the value, use or operation of
the Premises, all as determined in the reasonable judgment of Senior Lender),
then such Junior Lender only shall be given an additional period of time as is
reasonably necessary for such Junior Lender in the exercise of due diligence to
cure such non-monetary default (or, in the case of any such non-monetary
default as described above that is not susceptible of cure, then such Junior
Lender shall be given an additional period of time as is reasonably necessary
for such Junior Lender in the exercise of due diligence to complete such
foreclosure), for so long as (1) such Junior Lender diligently and
expeditiously proceeds to cure such non-monetary default (or with respect to a
non-monetary default that is not susceptible of cure, if such Junior Lender shall
be diligently pursuing the foreclosure of its Equity Collateral and such
non-monetary default does not materially impair the value, use or operation of
the Premises, all as determined in the reasonable judgment of Senior Lender),
(2) timely payment of Senior Lender’s regularly scheduled monthly interest
and amortization payments under the Senior Loan and any other amounts due under
the Senior Loan Documents is made, (3) such additional period of time does
not exceed sixty (60) days, unless such non-monetary default is of a nature
that cannot be cured within such sixty (60) days without ownership of such
Junior Lender’s Equity Collateral or is not susceptible to cure, in which case
such Junior Lender shall have such additional time as 

 

63

 

is reasonably necessary to
gain ownership of its Equity Collateral, provided that such Junior Lender is
continuously and diligently pursuing the ownership of its Equity Collateral and
such non-monetary default does not materially impair the value, use or
operation of the Premises, all as determined in the reasonable judgment of
Senior Lender, (4) such non-monetary default is not caused by a Proceeding
of Senior Borrower or during such Non-Monetary Cure Period a Proceeding of Senior
Borrower does not occur, and (5) during such Non-Monetary Cure Period,
with respect to such non-monetary default (and any additional period of time
provided for above), there is no further material adverse effect on Senior
Borrower, the Senior Loan or the value, use or operation of the Premises taken
as a whole, all as determined in the reasonable judgment of Senior Lender (such
additional Non-Monetary Cure Period, an “Extended Non-Monetary Cure
Period”).  Notwithstanding
anything to the contrary contained herein, in no event shall any Extended
Non-Monetary Cure Period extend beyond the date that is five (5) years
prior to the Rated Final Distribution Date. 
If a Junior Lender is exercising its cure right, it shall consult with
the applicable Senior Junior Lenders and keep such Senior Junior Lenders
informed as to its progress.  The
Non-Monetary Cure Period and any additional cure period granted hereunder to a
Junior Lender electing to cure a non-monetary default of Senior Borrower
(including, with respect to a non-monetary default that is not susceptible of
cure, any additional time as is reasonably necessary for a Junior Lender to
foreclose on its Equity Collateral) shall automatically terminate upon the
commencement of a Proceeding involving the Senior Borrower, unless the
Proceeding is dismissed in which case the right will be deemed reinstated from
and after such dismissal to the extent the other conditions of this Section 12(a) are
satisfied.  Notwithstanding the
foregoing, if a Junior Lender abandons its cure efforts during a Non-Monetary
Cure Period or Extended Non-Monetary Cure Period or fails to satisfy any of the
conditions set forth in clauses (1), (2), (3), (4) and (5) above
during a Non-Monetary Cure Period, then (A) such Junior Lender’s cure rights
with respect to the applicable non-monetary default (but not any other
non-monetary default) shall immediately terminate and (B) notwithstanding
any other Junior Lenders’ earlier election not to cure the applicable
non-monetary default, such other Junior Lenders shall be entitled to succeed to
all rights under the existing Non-Monetary Cure Period, upon written notice to
the Senior Lender, so long as any such other Junior Lender promptly commences
and thereafter diligently pursues its rights against its Separate Collateral
and the conditions set forth in clauses (1), (2), (3), (4) and (5) above
are satisfied.

 

(iii)          To the extent that any
Junior Lender or any Qualified Transferee, in accordance with the provisions
and conditions of this Agreement, acquires the ownership interests in Senior
Borrower or any Senior Junior Borrower, as applicable, pursuant to a Separate
Collateral Enforcement Action, such Junior Lender or such Qualified Transferee
shall acquire the same subject to the Senior Loan and the terms, conditions and
provisions of the Senior Loan Documents for the balance of the term thereof
(including any extension rights as provided therein), which shall not be
accelerated by Senior Lender solely due to such acquisition and shall remain in
full force and effect, provided, that (i) such Junior Lender or
Qualified Transferee shall have caused Senior Borrower and any new Third-Party
Obligor to reaffirm their respective obligations under the Senior Loan
Documents in writing (subject to such 

 

64

 

exculpatory provisions as
are set forth therein), and thereafter to perform, all of the terms, conditions
and provisions of the Senior Loan Documents on Senior Borrower’s part to be
performed and (ii) all defaults under the Senior Loan which remain uncured
as of the date of such acquisition have been cured by such Qualified Transferee
or waived by Senior Lender except for defaults that are not susceptible of
being cured by such Qualified Transferee; provided, that such defaults
which are not susceptible of being cured do not materially impair the value,
use or operation of the Premises taken as a whole, all as determined in the
reasonable judgment of Senior Lender. 
Notwithstanding any contrary or inconsistent provision of this
Agreement, the Senior Loan Documents or the Junior Loan Documents, no
acquisition or other fee or similar charge shall be due in connection with such
Junior Lender’s or such other Qualified Transferee’s acquisition of any
interest in Senior Borrower, any Junior Borrower or the Premises as the result
of an Equity Collateral Enforcement Action or assignment in lieu of foreclosure
or other negotiated settlement in lieu of any of the foregoing.  In addition, to the extent that a Junior
Lender or any Qualified Transferee, in accordance with the provisions and
conditions of this Agreement, acquires the ownership interests in such Senior
Borrower, pursuant to an Enforcement Action or otherwise during the sixty (60)
days prior to the maturity date (or any extended maturity date, as applicable)
of the Senior Loan, such Junior Lender, or such Qualified Transferee shall only
be required to deliver a notice of extension of the term of such Senior Loan
five (5) Business Days prior to the maturity date notwithstanding anything
to the contrary in the Senior Loan Agreement.

 

(b)           Junior Loan Default.  Prior to accelerating a Junior Loan or
commencing any Equity Collateral Enforcement Action by reason of an Event of
Default under the applicable Junior Loan Documents, the Junior Lender holding
the Junior Loan that is subject to an Event of Default shall provide written
notice of the default which would permit such Junior Lender to accelerate the
applicable Junior Loan or commence an Equity Collateral Enforcement Action to
the applicable Subordinate Junior Lenders and any Loan Pledgees entitled to
notice thereof pursuant to Section 16 of this Agreement, whether or
not such Junior Lender is obligated to give notice thereof to the Junior
Borrower under such Junior Loan (each, a “Junior Loan Default Notice”).  Except in connection with such Junior
Borrower’s failure to repay such Junior Loan in full on the maturity date
thereof, the Junior Lender holding the Junior Loan that is subject to an Event
of Default shall permit the applicable Subordinate Junior Lenders an
opportunity to cure such default in accordance with the provisions of this Section 12.  In the event a Junior Borrower fails to repay
a Junior Loan in full on the maturity date thereof, each of the Subordinate Junior
Lenders with respect to such Junior Loan shall have the right to purchase such
Junior Loan pursuant to the terms, and subject to the conditions, provided in Section 14(b).  Prior to or concurrently with undertaking any
curative action with respect to a Junior Loan, a Junior Lender shall provide
the other Junior Lenders with written notice thereof.  Each Junior Lender shall keep the applicable
Subordinate Junior Lenders reasonably apprised as to the status of any Equity
Collateral Enforcement Action.

 

(i)            Junior Loan Monetary Default.  If the default identified in the Junior Loan
Default Notice is a monetary default relating to (1) any scheduled payment
of principal or interest or (2) the payment of any other liquidated sum of
money, the Subordinate Junior Lenders shall have until ten (10) Business
Days after the later of (a) 

 

65

 

the receipt (or deemed
receipt) by the applicable Subordinate Junior Lenders of the Junior Loan
Default or (b) expiration of the applicable Senior Junior Borrower’s
Notice to cure such monetary default (each such cure period, a “Junior Loan Monetary Cure Period”); provided, however,
that in the event a Subordinate Junior Lender elects to cure such monetary
default, such Subordinate Junior Lender hereby agrees (x) to indemnify,
defend and hold harmless the applicable Senior Junior Lender for all cost,
expenses, losses, liabilities, obligations, damages, penalties, and
disbursements arising under any servicing agreement applicable to the Senior
Junior Loan to the extent imposed on, incurred by or asserted against Senior
Junior Lender due to or arising from such Junior Loan Monetary Cure Period,
(y) without duplication, to reimburse the applicable Senior Junior Lender
for any interest charged by the applicable Senior Junior Lender or the servicer
on any advances for monthly payments of principal and/or interest on the
applicable Senior Junior Loan and/or on any Protective Advances during the
Junior Loan Monetary Cure Period, and (z) if the monetary default is not
cured within the Junior Loan Monetary Cure Period but is thereafter cured by a
Subordinate Junior Lender, to pay the applicable Senior Junior Lender the
excess of interest accruing at the Default Rate (without duplication) over interest
accruing at the Interest Rate under the applicable Senior Junior Loan for the
number of days beyond the expiration of such Junior Loan Monetary Cure Period
that the default to which such Junior Loan Monetary Cure Period related
continued uncured, less any amounts paid by such Subordinate Junior Lender
under (y) above.  A Subordinate
Junior Lender shall not be required, in order to effect a cure hereunder during
the Junior Loan Monetary Cure Period, to pay any late charges or (other than
the cure by a Subordinate Junior Lender of a default in the payment of the
applicable Senior Junior Loan in full on the maturity date thereof) any
interest at the Default Rate under the applicable Senior Junior Loan Documents
(irrespective of any cure of such default by a Subordinate Junior Lender
pursuant to the provisions of this Agreement), and no late charges or interest
at the Default Rate shall accrue against such Subordinate Junior Lender for
such period.  There shall be no right to
cure as hereinabove set forth with respect to monthly scheduled interest and
principal payments for a period of more than six (6) consecutive months
(regardless of which Subordinate Junior Lender has cured such monetary default)
unless such Subordinate Junior Lender seeking to cure beyond such six (6) month
period has commenced and is continuing to diligently pursue its rights against
such Subordinate Junior Lender’s Equity Collateral, in which case such
Subordinate Junior Lender shall be entitled to continue curing such monetary
defaults involving monthly scheduled interest and principal payments until the
occurrence of any voluntary or involuntary Proceeding involving the applicable
Junior Borrower (such additional monetary cure period, a “Junior Loan
Extended Monetary Cure Period”).  In the event more than one Subordinate Junior
Lender cures any monetary default in accordance with the terms of this Section,
the applicable Senior Junior Lender hereby agrees (x) to accept the cure
from the junior most Subordinate Junior Lender and (y) to return to any
Senior Subordinate Junior Lender(s) within three (3) Business Days of
accepting such cure from the junior most Subordinate Junior Lender any funds
tendered by the Senior Subordinate Junior Lender(s).  The cure period for a Subordinate Junior
Lender with respect to a monetary default shall run concurrently with the cure
period for the other Subordinate Junior Lenders with respect to such 

 

66

 

monetary default and in no
event sequentially.  Notwithstanding the
foregoing, if a Subordinate Junior Lender elects to pursue such cure of
defaults involving monthly scheduled debt service payments as set forth above
and thereafter either fails to make the required cure payments or fails to
diligently pursue its rights against such Subordinate Junior Lender’s Equity
Collateral, then notwithstanding the earlier election of the remaining
Subordinate Junior Lenders not to cure the defaults involving monthly scheduled
debt service payments, such other Subordinate Junior Lenders shall be entitled
to succeed to all such cure rights, upon written notice to the Senior Junior
Lender that is the holder of the Senior Junior Loan that is subject to the
Event of Default, so long as such remaining Subordinate Junior Lender promptly
commences and thereafter diligently pursues its rights against its Equity
Collateral and otherwise satisfies the provisions of this Section 12(b)(i).  If the default referenced in a Junior Loan
Default Notice has been cured such that there is no longer an Event of Default
under the applicable Junior Loan Documents, the applicable Subordinate Junior
Lenders shall have the same Junior Loan Monetary Cure Period with respect to
any future Junior Loan Default Notice. 
In the event that the Senior Loan and one or more Senior Junior Loans
are concurrently in default, a Subordinate Junior Lender shall have no right to
exercise its cure rights with respect to the Senior Loan under Section 12(a)(i) or
(ii) or the Senior Junior Loan(s) under this Section 12(b)(i) or
Section 12(b)(ii) below unless such Subordinate Junior Lender
is simultaneously exercising its cure rights with respect to the Senior Loan
under Sections 12(a)(i) and/or (ii) (to the extent
that such Subordinate Junior Lender is permitted to exercise such cure rights
under Sections 12(a)(i) and/or (ii)) and with respect
to each such Senior Junior Loan(s) under this Section 12(b)(i) above
or Section 12(b)(ii) below (to the extent that such
Subordinate Junior Lender is permitted to exercise such cure rights under Sections 12(b)(i) and/or
(ii)).

 

(ii)           Junior Loan Non-Monetary
Default.  If the default identified in
the Junior Loan Default Notice is of a non-monetary nature, (aa) the
applicable Subordinate Junior Lender having the lowest priority shall have
fifteen (15) Business Days from the later of (A) the receipt by it of a
Junior Loan Default Notice and (B) the expiration of the applicable Senior
Junior Borrower’s cure period for such non-monetary default provided in the
applicable Senior Junior Loan Documents, to cure such non-monetary default
(such period, the “Initial Junior Loan
Non-Monetary Cure Period”); and (bb) if the applicable
Subordinate Junior Lender having the lowest priority elects not to cure such
non-monetary default prior to the expiration of the Initial Junior Loan
Non-Monetary Cure Period, the other remaining Subordinate Junior Lenders shall
have the right to cure such non-monetary default within five (5) additional
Business Days after such Subordinate Junior Lender receives notice that the
next most junior Subordinate Junior Lender failed to cure such non-monetary
default (the Initial Junior Loan Non-Monetary Cure Period or such additional
cure period, as applicable, the “Junior Loan Non-Monetary
Cure Period”); provided, that (1) except as provided in
the immediately following clause (2), in no event shall the Junior Loan
Non-Monetary Cure Period extend beyond the date that is the later of
(A) five (5) Business Days after the Subordinate Junior Lender with
the highest priority with respect to the Senior Junior Loan that is subject to
a default has received notice that the Subordinate Junior Lender with the next
lower priority has failed to cure such default and (B) twenty-five (25) 

 

67

 

Business Days after the
expiration of Senior Junior Borrower’s cure period, if any, for such
non-monetary default provided in the Senior Junior Loan Documents, to cure such
non-monetary default; and (2) if such non-monetary default is susceptible
of cure but cannot reasonably be cured within the applicable Junior Loan
Non-Monetary Cure Period and curative action was promptly commenced and is
being diligently pursued by a Subordinate Junior Lender (or with respect to a
non-monetary default that is not susceptible of cure, if a Subordinate Junior
Lender shall be diligently pursuing the foreclosure of its Equity Collateral
and such non-monetary default does not materially impair the value, use or
operation of the applicable Senior Junior Lender’s Equity Collateral as
reasonably determined by such Senior Junior Lender), such Subordinate Junior
Lender shall be given an additional period of time as is reasonably necessary
for such Subordinate Junior Lender in the exercise of due diligence to cure
such non-monetary default (or, in the case of a non-monetary default as
described above that is not susceptible of cure, then such Subordinate Junior
Lender shall be given an additional period of time as is reasonably necessary
for such Subordinate Junior Lender in the exercise of due diligence to complete
the foreclosure of its Equity Collateral) for so long as (A) such
Subordinate Junior Lender makes or causes to be made timely payment of the
applicable Senior Junior Borrower’s regularly scheduled monthly principal
and/or interest payments under the applicable Senior Junior Loan and any other
amounts due under the applicable Senior Junior Loan Documents, (B) such
additional period of time does not exceed forty-five (45) days, unless such
non-monetary default is of a nature that cannot be cured within such forty-five
(45) days, in which case, such Subordinate Junior Lender shall have such
additional time as is reasonably necessary to cure such non-monetary default,
provided that such Subordinate Junior Lender is continuously and diligently
pursuing a cure of such non-monetary default (or, with respect to a
non-monetary default that is not susceptible of cure, such Subordinate Junior
Lender shall have such additional time as is reasonably necessary to gain
ownership of its Equity Collateral, provided that such Subordinate Junior
Lender is continuously and diligently pursuing the ownership of its Equity
Collateral and such non-monetary default does not materially impair the value,
use or operation of the applicable Senior Junior Lender’s Equity Collateral as
reasonably determined by such Senior Junior Lender), (C) such default is
not caused by a Proceeding of the applicable Senior Junior Borrower, and
(D) during such Junior Loan Non-Monetary Cure Period (and any additional
period of time provided for above), there is no material impairment to the
value, use or operation of the applicable Senior Junior Lender’s Equity
Collateral as reasonably determined by such Senior Junior Lender (such
additional Junior Loan Non-Monetary Cure Period, an “Junior Loan
Extended Non-Monetary Cure Period”). 
If a Subordinate Junior Lender has commenced exercising any such cure
right during a Junior Loan Non-Monetary Cure Period and elects not to proceed
with such cure, such Junior Lender shall promptly notify the remaining
Subordinate Junior Lenders, and each remaining Subordinate Junior Lender shall
be deemed in compliance with the terms hereof if it commences curing such event
within five (5) Business Days following receipt of written notice of such
election not to proceed with such cure by the Junior Lender that precedes it in
priority of cure right pursuant to this Section 12(b)(ii) and
otherwise complies with the provision of the immediately preceding
sentence.  The Junior Loan Non-Monetary
Cure 

 

68

 

Period and any additional
cure period granted hereunder to a Subordinate Junior Lender electing to cure
the non-monetary default (including, with respect to a non-monetary default
that is not susceptible of cure, any additional time as is reasonably necessary
for a Subordinate Junior Lender to foreclose on its Equity Collateral) shall
automatically terminate upon the bankruptcy (or similar insolvency) of Senior
Borrower or any applicable Senior Junior Borrower.  In the event that the Senior Loan and one or
more Senior Junior Loans are concurrently in default, a Subordinate Junior
Lender shall have no right to exercise its cure rights with respect to the
Senior Loan under Section 12(a) or the Senior Junior Loan(s) under
Section 12(b)(i) above or this Section 12(b)(ii) unless
such Subordinate Junior Lender is simultaneously exercising its cure rights
with respect to the Senior Loan under Sections 12(a)(i) and/or
(ii) (to the extent that such Subordinate Junior Lender is
permitted to exercise such cure rights under Sections 12(a)(i) and/or
(ii)) and with respect to each such Senior Junior Loan(s) under Section 12(b)(i) above
or this Section 12(b)(ii) (to the extent that such Subordinate
Junior Lender is permitted to exercise such cure rights under Sections 12(b)(i) and/or
(ii)).  The Junior Loan
Non-Monetary Cure Period and any additional cure period granted hereunder to
any Subordinate Junior Lender electing to cure a non-monetary default of any
applicable Senior Junior Borrower (including, with respect to a non-monetary
default that is not susceptible of cure, any additional time as is reasonably
necessary for a Subordinate Junior Lender to foreclose on its Equity
Collateral) shall automatically terminate upon the bankruptcy (or similar
insolvency) of such applicable Senior Junior Borrower.

 

(c)           Cash Management.  So long as the South Carolina Management
Agreements are in place and so long as no Event of Default shall have occurred
and be continuing under the Senior Loan Documents, subject to the cure rights
of the Junior Lenders hereunder, all funds held and applied pursuant to the
Senior Loan Cash Management Agreement and Senior Loan Agreement, shall continue
to be applied in the manner required thereunder prior to the occurrence of an
Event of Default under the Senior Loan. 
So long as no Event of Default shall have occurred and be continuing
under the First Mezzanine Loan Documents, subject to the cure rights of the
Junior Lenders hereunder, all funds held and applied pursuant to the First
Mezzanine Cash Management Agreement and First Mezzanine Loan Agreement, shall
continue to be applied pursuant thereto in the manner required thereunder prior
to the occurrence of an Event of Default under the First Mezzanine Loan
Documents.  So long as no Event of
Default shall have occurred and be continuing under the Second Mezzanine Loan
Documents, subject to the cure rights of the Junior Lenders hereunder, all
funds held and applied pursuant to the Second Mezzanine Cash Management
Agreement and Second Mezzanine Loan Agreement, shall continue to be applied in
the manner required thereunder prior to the occurrence of an Event of Default
under the Second Mezzanine Loan Documents. 
So long as no Event of Default shall have occurred and be continuing
under the Third Mezzanine Loan Documents, subject to the cure rights of the
Junior Lenders hereunder, all funds held and applied pursuant to the Third
Mezzanine Cash Management Agreement and Third Mezzanine Loan Agreement, shall
continue to be applied in the manner required thereunder prior to the
occurrence of an Event of Default under the Third Mezzanine Loan
Documents.  So long as no Event of
Default shall have occurred and be continuing under the Fourth Mezzanine Loan
Documents, subject to the cure rights of the Junior Lenders hereunder, all
funds held and applied pursuant to the Fourth Mezzanine Cash Management

 

69

 

 

Agreement and Fourth Mezzanine Loan Agreement, shall
continue to be applied in the manner required thereunder prior to the
occurrence of an Event of Default under the Fourth Mezzanine Loan
Documents.  So long as no Event of
Default shall have occurred and be continuing under the Fifth Mezzanine Loan
Documents, subject to the cure rights of the Junior Lenders hereunder, all
funds held and applied pursuant to the Fifth Mezzanine Cash Management
Agreement and Fifth Mezzanine Loan Agreement, shall continue to be applied in
the manner required thereunder prior to the occurrence of an Event of Default
under the Fifth Mezzanine Loan Documents. 
So long as no Event of Default shall have occurred and be continuing
under the Sixth Mezzanine Loan Documents, subject to the cure rights of the
Junior Lenders hereunder, all funds held and applied pursuant to the Sixth
Mezzanine Cash Management Agreement and Sixth Mezzanine Loan Agreement, shall
continue to be applied in the manner required thereunder prior to the occurrence
of an Event of Default under the Sixth Mezzanine Loan Documents.

 

Section 13.             Replacement of Manager.

 

Senior Lender and each Junior Lender hereby consents
to each Junior Lenders’ right, under the circumstances set forth in the
applicable Junior Loan Documents, to cause the termination of any manager of
the Premises, and the exercise of such right (and any manager replacement right
exercised pursuant to the terms of this Section 13 below) shall not
(in and of itself) permit the Senior Lender and the other Junior Lenders to
declare an Event of Default as defined in the Senior Loan Documents or the
applicable Junior Loan Documents or take any Enforcement Action or Equity
Collateral Enforcement Action.  In the
event Senior Lender and one or more Junior Lenders shall have the right to so
terminate any manager of the Premises, and Senior Lender shall fail to exercise
such rights within ten (10) Business days, the most junior Junior Lender may
exercise such rights without the consent of the Senior Lender; provided
such exercise by the most Junior Lender may be superseded by any subsequent
exercise of such rights by Senior Lender in accordance to the Senior Loan
Documents.  If Senor Lender does not
exercise its superior termination rights, the most junior Junior Lender, having
terminated the property manager of the Premises pursuant to the most junior
Junior Loan Documents, shall have the right to select, or cause the selection,
of a replacement property manager, asset manager or leasing agent, as
applicable, for the Premises, which replacement manager, asset manager and/or
leasing agent for the Premises, shall be subject to Senior Lender’s reasonable
approval and the applicable terms and provisions of the Senior Loan Documents,
and, if any Certificates are then outstanding, be subject to a Rating Agency
Confirmation, and shall be a Qualified Manager. 
Notwithstanding anything in this Section 13 to the contrary,
if an Event of Default under the Senior Loan then is continuing, Senior Lender
shall have the sole right to select any replacement manager, asset manager
and/or leasing agent, as applicable, which is a Qualified Manager and, if any
Certificates are then outstanding, is subject to a Rating Agency Confirmation,
whether or not a new manager or agent was retained by the most junior Junior
Lender; provided, Senior Lender agrees to consult with the Junior
Lenders prior to making any such election; and provided, further,
that without the consent of each of the Junior Lenders which is not an
Affiliate of the Senior Borrower, the Senior Lender shall not engage a
replacement manager that is an Affiliate of the Senior Borrower.

 

70

 

Section 14.             Right to Purchase Senior Loan
and the Senior Junior Loans. 
(a)  At any time after (i) the occurrence and during the
continuance of a monetary Event of Default under the Senior Loan or
non-monetary Event of Default under the Senior Loan which is subject to an
Enforcement Action or (ii) if the Senior Loan is a “specially serviced
mortgage loan” under the applicable trust and servicing agreement or pooling
and servicing agreement related thereto as a result of a monetary Event of
Default or material non-monetary Event of Default occurring under the Senior
Loan (each of the foregoing, a “Purchase Option Event”),
upon ten (10) Business Days’ prior written notice to Senior Lender (the “Purchase Notice”), a Junior Lender (and, if permitted by the
applicable participation agreement, a Junior Lenders’ participant) shall have
the right to purchase, in whole, but not in part, the Senior Loan for a price
equal to the sum of (without duplication) the outstanding principal balance of
the Senior Loan, together with all accrued interest and other amounts due
thereon (excluding prepayment fees or premiums that would be due if Senior
Borrower were prepaying the Senior Loan at the time of such purchase in
violation of the prohibition against voluntary prepayment, exit fees, yield
maintenance premiums, spread maintenance premiums, default interest and late
charges, but including, without limitation, post-petition interest, any
unreimbursed Protective Advances made by Senior Lender or any servicer and any
interest charged by Senior Lender or any servicer on any advances for monthly
payments of principal and/or interest on the Senior Loan and/or on any
Protective Advances), and including all costs and expenses (including
reasonable legal fees and expenses) actually incurred by Senior Lender in
enforcing the terms of the Senior Loan Documents, and any fees and expenses
payable or reimbursable to any servicer, trustee or fiscal agent; provided
that any such fees and expenses are not duplicative of any other fees and
expenses otherwise payable by a Junior Lender to Senior Lender under this Section 14,
including, without limitation, special servicing to any special servicer under
the applicable pooling and servicing agreement, interest on advances made by
any of them (but excluding any workout or liquidation fees if the Senior Loan
is purchased within ninety (90) days of the Purchase Option Event) whether or
not any such entity may be deemed to be Senior Lender (collectively, the “Senior Loan Purchase Price”).  In the event that any Junior Lender elects to
purchase the Senior Loan pursuant to this Section 14(a), the Subordinate
Junior Lender with the lowest priority with respect to the other Junior Lenders
that have elected to purchase the Senior Loan shall have the exclusive right to
so purchase the Senior Loan, provided that such Subordinate Junior
Lender shall also be required to concurrently purchase each of the applicable
Senior Junior Loans from the Senior Junior Lenders holding such applicable
Senior Junior Loans (regardless of whether such Senior Junior Lenders were
among the Junior Lenders which had elected to purchase the Senior Loan).  Such purchase of each of the Senior Junior
Loans shall be for a price equal to the sum of (without duplication) the
outstanding principal balance of the Senior Junior Loan, together with all
accrued interest and other amounts due thereon (including, without limitation,
advances made by Senior Junior Lender or any servicer and post-petition
interest), any unreimbursed Protective Advances made by such Senior Junior
Lender or any servicer), including all costs and expenses (including reasonable
legal fees and expenses) actually incurred by such Senior Junior Lender in
enforcing the terms of the applicable Senior Junior Loan Documents, any fees
and expenses payable or reimbursable to any servicer (provided that any
such fees and expenses are not duplicative of any default interest, late
charges or other fees and expenses otherwise payable by a Subordinate Junior
Lender to such Senior Junior Lender under this Section 14);
excluding any workout or liquidation fees, prepayment fees or premiums that
would be due if the 

 

71

 

applicable Senior Junior Borrower were prepaying the
applicable Senior Junior Loan at the time of such purchase in violation of the
prohibition against voluntary prepayment, exit fees, yield maintenance
premiums, spread maintenance premiums, late charges and default interest (such
price as to each such Senior Junior Loan, the “Senior
Junior Loan Purchase Price”). 
A Subordinate Junior Lender may not close the purchase of the Senior
Loan without concurrently closing the purchase of the applicable Senior Junior
Loans in accordance with the terms of this paragraph.  Prior to electing to purchase the Senior Loan
and/or any Senior Junior Loan, a Subordinate Junior Lender shall have the right
to obtain from Senior Lender and each Senior Junior Lender a good faith
estimate of the Senior Loan Purchase Price and Senior Junior Loan Purchase
Price, respectively.  If any Subordinate
Junior Lender which has elected to purchase the Senior Loan fails to complete
such purchase within ten (10) Business Days after delivery of a Purchase Notice
or fails to concurrently purchase the applicable Senior Junior Loans as
required hereunder, then such Purchase Notice shall be deemed invalid, such defaulting
Subordinate Junior Lender shall cease to have any right to purchase the Senior
Loan (and any applicable Senior Junior Loan) in connection with the applicable
Purchase Option Event and the remaining Junior Lenders shall thereafter be
entitled to exercise their purchase rights under, and in accordance with, this Section 14(a).  Senior Lender shall close the sale of the
Senior Loan to the applicable Junior Lender on the date set forth in the Senior
Purchase Notice subject to the terms and conditions of this Agreement.  Each Junior Lender agrees that the sale of
the Senior Loan shall, if the Senior Loan is included in a Securitization at
such time, comply with the requirements of the pooling and servicing agreement pursuant
to which the Certificates were issued and that all attorney’s fees related to
the preparation and delivery of the assignment of the Senior Loan shall be paid
by the applicable Junior Lender. 
Concurrently with payment to Senior Lender of the Senior Loan Purchase
Price, Senior Lender shall deliver or cause to be delivered to the Junior
Lender exercising the purchase right hereunder all Senior Loan Documents held
by or on behalf of Senior Lender and will execute in favor of the Junior Lender
or its designee exercising the purchase right hereunder, assignment
documentation, in form and substance reasonably acceptable to Senior Lender and
such Junior Lender, at the sole cost and expense of such Junior Lender to
assign the Senior Loan and its rights under the Senior Loan Documents (without
recourse, representations or warranties, except for representations as to the
outstanding balance of the Senior Loan, the power and authority of the Senior
Lender to transfer the Senior Loan and as to Senior Lender’s ownership and not
having previously assigned, transferred, participated or encumbered its rights
in the Senior Loan unless such participation or encumbrance will be released
prior to the transfer).  Concurrently
with payment to each of Senior Junior Lenders of the applicable Senior Junior
Loan Purchase Price for the Senior Junior Loan held by each such Senior Junior
Lender, each applicable Senior Junior Lender shall deliver or cause to be
delivered to the Subordinate Junior Lender exercising the purchase right
hereunder all Senior Junior Loan Documents held by or on behalf of such Senior
Junior Lender and will execute in favor of such Subordinate Junior Lender or
its designee assignment documentation, in form and substance reasonably
acceptable to such Subordinate Junior Lender, at the sole cost and expense of
such Subordinate Junior Lender, to assign such Senior Junior Lender’s Senior
Junior Loan and its rights under the related Senior Junior Loan Documents
(without recourse, representations or warranties, except for representations as
to the outstanding balance of such Senior Junior Loan, the power and authority
of the Senior Junior Lender to transfer the Senior Junior Loan and as to such
Senior Junior Lender’s ownership and not having previously assigned,
transferred, participated or 

 

72

 

encumbered its rights in such Senior Junior Loan
unless such participation or encumbrance will be released prior to the
transfer).  Following the occurrence of a
Purchase Option Event, each Junior Lender shall keep the other Junior Lenders
informed as to such Junior Lender’s intention to exercise any of its respective
rights in connection with the Purchase Option Event.

 

(b)           The right of each Junior Lender to purchase the Senior
Loan shall automatically terminate (i) ten (10) Business Days after receipt of
notice that a more senior Senior Junior Lender has elected to exercise the
right to purchase the Senior Loan (unless the more junior Junior Lender shall
have given written notice to such Senior Junior Lender to purchase the Senior
Loan prior to the expiration of such ten (10) Business Day period),
(ii) upon a transfer of the Premises by foreclosure sale, sale by power of
sale or delivery of a deed in lieu of foreclosure, or (iii) with respect
to a specific Purchase Option Event, if such Purchase Option Event ever ceases
to exist; provided, however, that in no event shall any Junior
Lender have less than thirty (30) days to deliver a Purchase Notice following
notice by Senior Lender to such Junior Lender of the occurrence of the related
Purchase Option Event, except pursuant to the terms of clause (A)(iii)
of this sentence.  Notwithstanding the
foregoing sentence, if Borrower offers to deliver or actually delivers to
Senior Lender a deed in lieu of foreclosure to the Premises (each, a “Deed in Lieu”), Senior Lender shall provide Junior Lenders
not less than ten (10) Business Days written notice prior to accepting a Deed
in Lieu to the Premises, and if any Junior Lender shall deliver a Purchase
Notice to Senior Lender prior to the expiration of such ten (10) Business
Day period, Senior Lender shall not accept the Deed in Lieu to the Premises,
provided that the applicable Junior Lender pays the Senior Loan Purchase Price
to Senior Lender and acquires the Senior Loan (and the Senior Junior Loans at
the applicable Senior Junior Loan Purchase Price) within such ten (10) Business
Day period from the delivery of such Purchase Notice, in which case all costs
and expenses (including all transfer taxes) in connection therewith shall be
paid by the applicable Junior Lender.

 

(c)           If a Junior Loan has been accelerated, any Equity
Collateral Enforcement Action has been commenced under the Junior Loan
Documents for a Junior Loan, a Proceeding has been commenced against a Junior
Borrower under such Junior Loan or a Subordinate Junior Lender has cured one or
more defaults on the part of any Junior Borrower under the Senior Junior Loan
Documents pursuant to Section 12 hereof and, but for such cure, the
Senior Junior Loan would be considered a “specially serviced mortgage loan”
under the applicable pooling and servicing agreement if it were the Senior Loan
(a “Junior Loan Purchase Option Event”),
the Junior Lender holding such Junior Loan (such Junior Loan, the “Optioned Junior Loan” and such Junior Lender, the “Optioned Junior Lender”) shall provide prompt written notice
of the same to the applicable Subordinate Junior Lenders, and upon ten (10)
Business Days’ prior written notice (the “Junior Purchase Notice”)
to the Senior Junior Lender holding the Optioned Junior Loan that is subject to
the applicable Junior Loan Purchase Option Event, the applicable Subordinate
Junior Lenders (and, if permitted by the applicable participation agreement,
Optioned Junior Lenders’ participant) shall have the right to purchase, in
whole but not in part, the applicable Optioned Junior Loan for the Senior
Junior Loan Purchase Price. 
Notwithstanding the foregoing but subject to the terms of the next to
last sentence of this Section 14(c), the failure of a Senior Junior
Lender to provide notice to any applicable Subordinate Junior Lender of the
occurrence of a Junior Loan Purchase Option Event shall have no adverse effect
on such Junior Lender.  In the event that
more than one Subordinate Junior Lender elects to purchase an Optioned Junior
Loan pursuant to this 

 

73

 

Section 14(c), the Subordinate Junior
Lender with the lowest priority with respect to the other Subordinate Junior
Lenders that have elected to purchase such Optioned Junior Loan shall have the
exclusive right to so purchase such Optioned Junior Loan, provided that such
Subordinate Junior Lender shall also be required to concurrently purchase each
of the other Subordinate Junior Loans that constitute, as to such purchasing
Subordinate Junior Lender, Senior Junior Loans from the Junior Lenders holding
such other Subordinate Junior Loans that so constitute Senior Junior Loans that
are also Subordinate Junior Loans in respect of the Optioned Junior Loan (such
other Subordinate Junior Loans, the “Additional Covered Junior
Loans”) in each case for a price equal to the applicable Senior
Junior Loan Purchase Price.  If any
Subordinate Junior Lender which has elected to purchase the Optioned Junior
Loan that is subject to the applicable Junior Loan Purchase Option Event fails
to complete such purchase within ten (10) Business Days of delivery of a Junior
Purchase Notice or fails to concurrently purchase the applicable Additional
Covered Junior Loans as required hereunder, then such Junior Purchase Notice
shall be deemed invalid, such defaulting Subordinate Junior Lender shall cease
to have any right to purchase the Optioned Junior Loan in connection with the
applicable Junior Loan Purchase Option Event and the other Subordinate Junior
Lenders shall thereafter be entitled to exercise their purchase rights under,
and in accordance with, this Section 14(c).  Concurrently with payment to the applicable
Senior Junior Lenders of the applicable Senior Junior Loan Purchase Price for
the Optioned Junior Loan or Additional Covered Junior Loan, as the case may be,
held by such Senior Junior Lender, each applicable Senior Junior Lender shall
deliver or cause to be delivered to the Subordinate Junior Lender exercising
the purchase right hereunder all Senior Junior Loan Documents held by or on
behalf of such Senior Junior Lender and will execute in favor of such
Subordinate Junior Lender or its designee assignment documentation, in form and
substance reasonably acceptable to such Subordinate Junior Lender, at the sole
cost and expense of such Subordinate Junior Lender, to assign such Senior
Junior Lender’s Optioned Junior Loan, or Additional Covered Junior Loan, as the
case may be, and its rights under the related Senior Junior Loan Documents
(without recourse, representations or warranties, except for representations as
to the outstanding balance of such Optioned Junior Loan or Additional Covered
Junior Loan, as the case may be, and as to such Senior Junior Lender’s
ownership and not having previously assigned, transferred, participated or
encumbered its rights in such Optioned Junior Loan or Additional Covered Junior
Loan, as the case may be, unless such participation or encumbrance will be
released prior to the transfer).  The
right of any Subordinate Junior Lender to purchase the Optioned Junior Loan
shall automatically terminate (x) upon a transfer or sale of the Equity
Collateral covered by the Senior Junior Loan Documents that secure the Optioned
Junior Loan, pursuant to any Equity Collateral Enforcement Action where the
transferee is not Senior Borrower (or any Affiliate thereof), or (y) with
respect to a specific Junior Loan Purchase Option Event, if such Junior Loan
Purchase Option Event ceases to exist (including, if the applicable Senior
Junior Lender terminated its Equity Collateral Enforcement Action); provided,
however, that in no event shall any Subordinate Junior Lender have less
than thirty (30) days, following notice by the applicable Senior Junior Lender
to such Subordinate Junior Lender of the occurrence of a Junior Loan Purchase
Option Event, to elect to purchase the Optioned Junior Loan, except if such
period for such election to purchase is terminated pursuant to the terms of
foregoing clause (x) or (y). 
Notwithstanding the foregoing sentence, if title is transferred to any
Subordinate Junior Lender less than ten (10) days after the acceleration of the
applicable Senior Junior Loan, the applicable Subordinate Junior Lenders shall
have a ten (10) day period 

 

74

 

to deliver the applicable Senior Junior Loan
Purchase Notice to the applicable Senior Junior Lender with the obligation to
purchase the applicable Equity Collateral within ten (10) days of the delivery
of such Senior Junior Loan Purchase Notice at the applicable Senior Junior Loan
Purchase Price, in which case all costs and expenses (including all transfer
taxes) in connection therewith shall be paid by the applicable Subordinate
Junior Lender.

 

(d)           Senior Lender and each Junior Lender covenants not to, and
not to permit any Affiliate to, enter any agreement with Borrower, any Junior
Borrower or any Affiliate thereof to purchase the Senior Loan or any Junior
Loan pursuant to this Section or in connection with any refinancing of the
Senior Loan or any Junior Loan in any manner designed to avoid or circumvent
the provisions of the Senior Loan Documents or any of the Junior Loan Documents
which require the payment of any liquidated damage amount, acceleration
prepayment premium, a prepayment fee, premiums or yield maintenance charge in
connection with a prepayment of the Senior Loan or a Junior Loan.  Notwithstanding anything to the contrary
contained herein, the ten (10) Business Day period following delivery of the
Purchase Notice during which a purchasing Junior Lender is required to
consummate such purchase, may be extended for an additional ten (10) Business
Days upon payment to the Senior Lender of a nonrefundable deposit in an amount
equal to ten percent (10%) of the Senior Loan Purchase Price.

 

Section 15.             Additional Understandings.  For as long any Junior Loan remains
outstanding:

 

(a)           Notices of Transfer, etc.  In the event of a request by Senior Borrower
or any Junior Borrower for Senior Lender’s or any Junior Lender’s consent to
either (i) the sale or Transfer of all or any material portion of the
Premises or any interest in Senior Borrower or any Junior Borrower, or
(ii) the granting of a further mortgage, deed of trust or similar
encumbrance against the Premises or any of the Equity Collateral or any
incurrence of additional indebtedness, such Person from whom such consent has
been requested shall, as long as no Event of Default has occurred under the
Senior Loan or the Junior Loan held by such Person, if such Person has the
right to consent under the Senior Loan Documents or Junior Loan Documents held
by such Person or such consent is otherwise requested from such Person, obtain
the prior written consent of the Junior Lenders or the applicable Subordinate
Junior Lenders, as the case may be, prior to such Person granting its consent
or agreement thereto (for the purposes of this Section 15(a), each
Junior Lender is to be reasonable to the extent Senior Lender must be
reasonable, but nothing contained above is intended to reduce or limit the
rights of each Junior Lender under its respective Junior Loan Documents).  Nothing herein shall require any Junior
Lender to consent to, or waive its rights with respect to, any Transfer of the
Premises or any interest therein (including, without limitation, the Separate
Collateral).

 

(b)           Annual Budget. 
The most Junior Lender shall have the right to receive and reasonably
approve the Quarterly CapEx Budget in accordance with the terms of its Junior
Loan Documents during a Trigger Period.

 

(c)           Reserves and Escrows.  If (i) Senior Lender waives any reserves
or escrow accounts required under the Senior Loan Documents which reserves or
escrow 

 

75

 

accounts are also required under the most Senior
Junior Loan Documents, then the most Senior Junior Lender may require that its
Junior Borrower (x) deposit such amounts that would have been deposited
into any reserves or escrow accounts under the Senior Loan to be transferred to
and deposited with such Senior Junior Lender and (y) enter into a cash
management agreement with such Senior Junior Lender substantially similar to
the arrangement entered into by Borrower with Senior Lender at the closing of
the Senior Loan and (ii) if any Senior Junior Lender waives any reserves
or escrow accounts required under its applicable Senior Junior Loan Documents
which reserves or escrow accounts are also required under the most senior
Subordinate Junior Loan Documents, then the most senior Subordinate Junior Lender
may require that its Junior Borrower (x) deposit such amounts that would
have been deposited into any reserves or escrow accounts under the Senior Loan
or the applicable Senior Junior Loan to be transferred to and deposited with
such Subordinate Junior Lender and (y) enter into a cash management
agreement with such Subordinate Junior Lender substantially similar to the
arrangement entered into by Borrower with the Senior Lender or by the Senior
Junior Borrower with such Senior Junior Lender.

 

(d)           Consent Rights of Junior Lenders.  If any of the Junior Loan Documents contain
any provision or requirement that a Junior Lender’s consent or approval be
obtained for any act or determination by Borrower or its respective Junior
Borrower in connection with the leasing of the Premises or alterations to the
Premises, to the extent that such consent or approval is also required by
Senior Lender under the Senior Loan Documents, each Junior Lender hereby agrees
that it shall first advise Senior Lender whether such Junior Lender objects to
the requested consent or approval within five (5) Business Days after its
receipt of (i) a written request for a consent or approval from the
applicable Junior Borrower and (ii) delivery of all required documents and
information necessary to adequately and completely evaluate such request.  Senior Lender shall consult with each Junior
Lender with respect to any such consent or approval right of such Junior
Lender.  Each Junior Lender having such
consent rights shall not unreasonably withhold its consent to such lease or
alteration if Senior Lender (A) is deemed to have approved such lease or
alteration under the Senior Loan Documents or (B) reasonably approves such
lease or alteration provided, with respect to a lease, the lease is on market
terms and, with respect to an alteration, the alteration is necessary to
maintain the Premises in good order and repair as required by the Senior Loan
Documents.

 

(e)           Permitted Refinancing.  Each Junior Lender will not modify the
provisions of its respective Junior Loan Agreement with respect to permitted
refinancing of the Senior Loan without Senior Lender’s prior written consent
(which consent shall not be unreasonably withheld or delayed) or with respect
to permitted refinancing of any Senior Junior Loan without the applicable
Senior Junior Lender’s prior written consent, not to be unreasonably withheld
or delayed.

 

(f)            Marshalling of Assets.  Each Junior Lender hereby waives any
equitable right it may have to require that Senior Lender marshal any assets of
Senior Borrower in favor of such Junior Lender, to require the separate sales
of any portion of the Premises or to require that Senior Lender exhaust its
remedies against any portion of the Premises. 
Each Junior Lender agrees that, except with respect to the enforcement
of its remedies under its applicable Junior Loan Documents permitted hereunder
(including the foreclosure and acquisition of its applicable Equity Collateral
through an Enforcement Action), prior to the satisfaction of all 

 

76

 

Senior Loan Liabilities it shall not acquire, by
subrogation or otherwise, any lien, estate, right or other interest in any
portion of the Premises or any other collateral now securing the Senior Loan or
the proceeds therefrom that is or may be prior to, or of equal priority to, any
of the Senior Loan Documents or the liens, rights, estates and interests
created thereby.

 

(g)           Requests for Disbursements.  Senior Lender hereby agrees to promptly
(x) notify each Junior Lender of any requests by Senior Borrower for
disbursements of funds from the Reserve Funds (as defined in the Senior Loan
Agreement) or a release of Net Proceeds (as defined in the Senior Loan
Documents) and (y) provide each Junior Lender with any documentation
delivered by Senior Borrower to Senior Lender with respect to any such request
by Senior Borrower for a disbursement of funds from the Reserve Funds or
release of Net Proceeds (provided that in no event shall Senior Lender have any
liability for a failure by Senior Lender to provide such notice or
documentation to any Junior Lender, and no such failure shall constitute a
default hereunder).

 

(h)           Cash Management. 
(i)  Senior Lender hereby agrees to deliver to each Junior
Lender a copy of any notice sent or received by Senior Lender with respect to
the Senior Loan Cash Management Agreement, including, without limitation, each
disbursement instruction delivered under such Senior Loan Cash Management
Agreement.  Such copies shall be
delivered to each Junior Lender concurrently with the delivery of such notices
to the Agent under the Senior Loan Cash Management Agreement or promptly after
receipt thereof by Senior Lender, as the case may be.  Senior Lender may elect to change the Agent
under the Senior Loan Cash Management Agreement provided that Senior Lender
shall give each Junior Lender not less than two (2) Business Days’ prior
written notice of any such change. 
Senior Lender shall cause the Senior Loan Cash Management Agreement to
provide that the Agent thereunder shall provide each Junior Lender with access
to information regarding the Cash Management Account (as such term is defined
in the Senior Loan Cash Management Agreement).

 

(ii)           Each Senior Junior Lender hereby agrees to deliver to the
applicable Subordinate Junior Lenders a copy of any notice sent or received by
such Senior Junior Lender with respect to its applicable Junior Loan Cash
Management Agreement, including, without limitation, each disbursement
instruction delivered under such Senior Junior Loan Cash Management
Agreement.  Such copies shall be
delivered to each Subordinate Junior Lender concurrently with the delivery of
such notices to the Agent under the applicable Senior Junior Loan Cash Management
Agreement.  A Senior Junior Lender may
elect to change the Agent under its applicable Senior Junior Loan Cash
Management Agreement, provided that such Senior Junior Lender shall give
each applicable Subordinate Junior Lender not less than two (2) Business Days’
prior written notice of any such change. 
Each Senior Junior Lender shall cause its applicable Senior Junior Loan
Cash Management Agreement to provide that the Agent thereunder shall provide
each applicable Subordinate Junior Lender with access to information regarding
the applicable Cash Management Account (as such term is defined in the
applicable Senior Junior Loan Cash Management Agreement).

 

(i)            Notices of Default.  (i)  Each Junior Lender shall give
Senior Lender and each other Junior Lender notice of any Event of Default, acceleration
of its applicable Junior 

 

77

 

Loan and the commencement of any Equity Collateral
Enforcement Action under its Junior Loan Documents and, simultaneously with
giving such notices to its Junior Borrower, copies of notices given to its
Junior Borrower of events that with the passage of time and failure to cure,
would result in the occurrence of a “Default” or “Event of Default” under its
respective Junior Loan Documents.

 

(ii)           Senior Lender shall give each Junior Lender written notice
of any Event of Default, acceleration of the Senior Loan, transfer of the
Senior Loan to “special servicing” and the commencement of an Enforcement
Action under the Senior Loan Documents and, simultaneously with giving such
notices to Senior Borrower, copies of notices given to Senior Borrower of
events that with the passage of time and failure to cure, would result in the
occurrence of a “Default” or “Event of Default” under the Senior Loan
Documents.

 

(j)            Cooperation with Senior Lender.  At the request of Senior Lender, each Junior
Lender shall use reasonable efforts, at Senior Lender’s expense, to satisfy,
and to cooperate with Senior Lender in attempting to cause Senior Borrower,
each Senior Junior Borrower to satisfy, the market standards to which Senior
Lender customarily adheres or which may be reasonably required in the
marketplace or by the Rating Agencies in connection with the Securitization of
the Senior Loan, including, entering into (or consenting to, as applicable) any
modifications to this Agreement or the Senior Loan Documents or the Junior Loan
Documents, and to cooperate with Senior Lender in attempting to cause Senior
Borrower and the Junior Borrowers to execute such modifications to the Senior
Loan Documents and the applicable Junior Loan Documents, in any such case, as
may be reasonably requested by the Rating Agencies to effect the
Securitization; provided, however, a Junior Lender shall not be
required to modify or amend this Agreement or any Senior Loan Documents or its
respective Junior Loan Documents (or consent to such modification of the Senior
Loan Documents), if such modification or amendment would (1) materially
increase its respective Junior Borrower’s obligations under its Junior Loan
Documents or materially decrease such Junior Lender’s rights, remedies or
protections thereunder, (2) change the economic terms allocable to the Junior
Loans (including, without limitation, the basis upon which any reserve
requirement is triggered or suspended) under the Senior Loan Documents and
Junior Loan Documents), or (3) otherwise, in any Junior Lender’s judgment,
have any material adverse impact on such Junior Lender or its Junior Loan.  In connection with any Securitization, each
Junior Lender agrees to provide for inclusion in any disclosure document
relating to the related Securitization such information concerning such Junior
Lender as the Senior Lender reasonably determines to be necessary or
appropriate.  Subject to the foregoing
qualifications in clauses (1)-(3) in the foregoing sentence, each
Junior Lender agrees that if the Senior Loan is to be included as an asset of a
Securitization, such Junior Lender shall, at Senior Lender’s request and
expense, cooperate with the reasonable requests of each Rating Agency and
Senior Lender in connection with the Securitization.

 

(k)           LIBOR Determination Notices.  Senior Lender shall provide each Junior
Lender with a copy of its determination of the LIBOR Rate applicable to each
Interest Period under the Senior Loan promptly after determination thereof.

 

78

 

(l)            Books and Records. 
Upon inspection of the books, records or Premises of Borrower by Senior
Lender pursuant to the terms of the Senior Loan Documents, Senior Lender shall,
upon request of any Junior Lender, take action to encourage Senior Borrower to
provide such Junior Lender access for its own inspection of such books, records
or the Premises.  Upon any inspection of
the books, records or the Premises of any Junior Borrower by a Junior Lender,
pursuant to the terms of its respective Junior Loan Documents, such Junior
Lender shall, upon written request of Senior Lender and any other Junior
Lender, take action to encourage its Junior Borrower to reasonably cooperate to
provide Senior Lender and such other requesting Junior Lender access for its
own inspection of such books, records or the Premises.  The provisions of this Section 15(l)
shall not be interpreted to limit in any way the rights in favor of any Junior
Lender under its respective Junior Loan Documents.

 

(m)          Resizing.  In
connection with any Securitization of the Senior Loan, Senior Lender may notify
the Junior Lenders that it intends to purchase a portion of certain of the
Junior Loans and convert such purchased portion of such Junior Loans into the
Senior Loan and, if applicable, the more senior Junior Loans, or require
certain of the Junior Lenders to purchase a portion of the Senior Loan and
convert such purchased portion into one or more of the Junior Loans (a “Resizing Notice”) which purchase shall occur within ten (10)
Business Days of the Resizing Notice (the “Resizing Date”).  Any such resizing shall have no material
adverse effect on any of the other Junior Loans and shall not change the
initial weighted average interest rate of the Senior Loan and the Junior
Loans.  Provided that no Event of Default
exists under the Senior Loan or the affected Junior Loans, the affected Junior
Lenders shall either (i) sell a portion of their Junior Loans to Senior Lender
and, if applicable to the more senior Junior Lenders, or (ii) purchase a
portion of the Senior Loan from Senior Lender, and if applicable, a portion of
the more senior Junior Loans (the “Resized Components”).  The Resizing Notice shall set forth:  (1) the effective date of such resizing,
(2) the principal amount of the Junior Loans to be purchased and converted
into the Senior Loan, and, if applicable, into the more senior Junior Loans, or
the principal amount of the Senior Loan and, if applicable, the more senior
Junior Loans, to be purchased and converted into the affected Junior Loans,
(3) the adjusted balance of the affected Junior Loans after such
purchase(s) and conversion, (4) the adjusted Senior Loan balance after
such purchase and conversion, (5) the adjusted Spread of the affected
Junior Loans after such purchase and conversion, (6) the adjusted Spread
of the Senior Loan after such purchase and conversion, and (7) the
adjusted amortization schedules, if applicable, and release prices (both of
which shall be allocated pro rata
between the Senior Loan and the affected Junior Loans), as between the Senior
Loan and the affected Junior Loans. 
Senior Lender and each Junior Lender each agrees that, at Senior Lender’s
expense, the Senior Loan Documents and the applicable Junior Loan Documents
shall each be modified accordingly in order to reflect the terms set forth in
the Resizing Notice (on or before the Resizing Date), which shall include (as
applicable), among other things, modifications to the Title Insurance Policy,
Interest Rate Cap Agreement, UCC Title Insurance Policy, and opinion letters
delivered in connection with the Senior Loan and the affected Junior Loans,
which modification documents shall be subject to the approval of the Senior Lender
and the other Junior Lenders, which approval shall not be unreasonably withheld
or delayed.  True and correct copies of
such modified documents shall be delivered to each of the Junior Lenders
promptly after execution thereof. 
Notwithstanding anything to the contrary contained in this clause (m),
any resizing to be effectuated pursuant to this clause (m) shall only
affect those of

 

79

 

the Junior Loans which at such time continue to be owned by the
originating Junior Lender (and originating Junior Noteholders) of each such
Junior Loan.

 

(n)           Uncross
of Properties.  Senior Lender or its
Affiliates may remove certain Individual Properties (each, an “Affected Property”) in connection with or after a
Securitization of the Senior Loan; provided that (i) each Junior
Lender shall have approved of the structure and the documentation necessary to
effectuate the uncross of any Affected Property, and (ii) Senior Lender or
its Affiliates and each Junior Lender shall mutually agree as to the
cross-collateralization and cross-default of the debt allocated to each
Affected Property so removed from the Securitization all at Senior Lender’s
sole cost and expense (including reasonable attorneys’ fees).  Notwithstanding the foregoing, the
obligations and rights of Senior Lender set forth in this Section 15(n) are
limited to the initial named Senior Lender hereunder and the trustee for any
Securitization of the Senior Loan, and no other successors or assigns of the
initial named Senior Lender hereunder shall have any obligations or rights
under this Section 15(n).

 

(o)           Property
Inspection Rights and Reports. 
Senior Lender will use commercially reasonable efforts to endeavor, at
no cost to Senior Lender, to cause the Senior Borrower to permit agents,
representatives and employees of any Junior Lender to inspect the Premises or
any part thereof during normal business hours on Business Days upon reasonable
advance notice, provided that, as required pursuant to the Senior Loan
Agreement, such inspections are subject in all instances to the rights of
tenants, and provided that neither such inspections shall not unreasonably
interfere with the operation of business on the Premises.  In addition, to the extent that Senior Lender
prepares or receives property reports or financial reports from the Borrowers
or with respect to the Premises (including any notices, documents, plans, specifications
or reports received in connection with alterations to the Premises), Senior
Lender will provide copies of such reports to any Junior Lender at such Junior
Lender’s request.

 

(p)           Interest
Rate Cap Agreement.(1)  [Notwithstanding the occurrence of an Event of
Default under the Senior Loan, until such time that Senior Borrower and each of
the Junior Borrowers obtain separate Interest Rate Cap Agreements for each of
their respective loans, Senior Lender shall distribute any payments received
under the Interest Rate Cap Agreement to each Junior Lender in the amount of
such Junior Lender’s allocable share of such payment.]

 

(q)           Cooperation
with Junior Lender(s).  At the
request of any Junior Lender, Senior Lender and each other Junior Lender shall
use reasonable efforts, at such requesting Junior Lender’s expense, to
cooperate with such Junior Lender in attempting to cause Senior Borrower and
each affected Junior Borrower in such Junior Lender’s creation of component
notes, splitting its Junior Loan into or one or more new mezzanine loans or
consolidating one or more Junior Loans held by such Junior Lender into a fewer
number of Junior Loans, including entering into (or consenting to, as
applicable) any modifications to this Agreement, the Senior Loan Documents or
the affected Junior Loan Documents, and to cooperate with such requesting
Junior Lender in attempting to cause Senior Borrower and the other Junior 

 

(1) 
To be deleted if there are interest rate cap agreements in place at Closing for
each Junior Loan.

 

80

 

Borrowers to execute such modifications to the Senior Loan Documents
and the applicable Junior Loan Documents, in any such case, as may be
reasonably requested by the requesting Junior Lender; provided, however,
Senior Lender or any such Junior Lender shall not be required to modify or
amend this Agreement, any Senior Loan Documents or its respective Junior Loan
Documents (or consent to such modification of the Senior Loan Documents or the
applicable Junior Loan Documents), if such modification or amendment would
(1) materially increase Senior Borrower’s obligations under the Senior
Loan Documents or materially decrease the Senior Borrower’s rights, remedies or
protections thereunder or materially increase the respective Junior Borrower’s
obligations under its Junior Loan Documents or decrease such Junior Lender’s
rights, remedies or protections thereunder, (2) change the economic terms
allocable to the Senior Loan or the applicable Junior Loans (including, without
limitation, the basis upon which any reserve requirement is triggered or
suspended) under the Senior Loan Documents and/or applicable Junior Loan
Documents or (3) otherwise, in Senior Lender’s or any Junior Lender’s
judgment, have any material adverse impact on Senior Lender or such Junior
Lender or on the Senior Loan or such Junior Lender’s Junior Loan.

 

(r)            Ground
Lease Default.  Notwithstanding
anything contained herein to the contrary, a Ground Lease Default (defined
below) shall, for all purposes hereunder, constitute a default under the Senior
Loan with respect to which Junior Lenders shall have the right to cure in
accordance with this Section 15(r) whether or not Senior
Lender has cured such Ground Lease Default. 
In connection with any default by the applicable Senior Borrower under a
Ground Lease (a “Ground Lease Default”), Senior
Lender shall, subject to the limitations and conditions set forth below, comply
with each of the following provisions, to the extent applicable:

 

(i)            If Senior Lender shall receive any written notice that a
Ground Lease Default has occurred and is continuing, Senior Lender shall
promptly notify each Junior Lender in writing of the same and promptly deliver
to each Junior Lender a true and complete copy of each such notice.  Further, Senior Lender shall provide such
documents and information as each Junior Lender shall reasonably request
concerning the Ground Lease Default; provided that, in the event such
requested documentation and information is not in the actual possession of
Senior Lender, Senior Lender shall only be required to use commercially
reasonable efforts to obtain such information and the applicable Junior Lender
shall pay all reasonable costs and expenses of Senior Lender incurred in
connection with obtaining such requested documentation and information.

 

(ii)           Senior Lender shall, if requested by a Junior Lender, take
all commercially reasonable action, to the extent permitted under the defaulted
Ground Lease and not performed by Senior Borrower, to (A) cure any Ground
Lease Default (to the extent such Ground Lease Default is susceptible of cure
by Senior Lender), to keep and maintain such Ground Lease in full force and
effect and (B) exercise any option to renew or extend the Ground Lease and
give written confirmation thereof to each Junior Lender within thirty (30) days
after such option is exercised; provided that the costs and expenses
incurred by Senior Lender in taking any such actions under this clause (ii) shall
be paid pro rata by the Junior Lenders, except to the extent such costs and 

 

81

 

expenses are otherwise allocated to any party other
than the Senior Lender pursuant to the pooling and servicing agreement for the
Securitization of the Senior Loan.

 

(iii)          If the ground lessor shall reject the Ground Lease under or
pursuant to Section 365 of the Bankruptcy Code, Senior Lender shall use
commercially reasonable efforts to not permit the Senior Borrower to elect to
treat the Ground Lease as terminated, and shall use commercially reasonable
efforts to require the Senior Borrower to elect to remain in possession of the
Premises demised under the Ground Lease and the leasehold estate under the
Ground Lease.

 

(iv)          In the event that the Senior Lender assumes a Ground Lease
or becomes entitled to a New Lease from the ground lessor prior to Senior
Borrower rejecting such Ground Lease in a Proceeding, Senior Lender hereby
agrees that, in the event that a Junior Lender forecloses or otherwise realizes
upon its Equity Collateral in accordance with the terms of this Agreement,
including, but not limited to, the terms and provisions of Section 6
hereof, and thereby gains title to such Equity Collateral, Senior Lender hereby
agrees that, promptly after the completion of such foreclosure or other action
to transfer title to such Equity Collateral, it will assign the assumed Ground
Lease or New Lease to the Senior Borrower.

 

(v)           Notwithstanding anything to the contrary contained in this
Agreement, (A) in the event that a Junior Lender requests that Senior
Lender take or refrain from taking any action pursuant to this Section 15(r) and
Senior Lender complies with such request, such Junior Lender shall protect,
indemnify and save harmless the Indemnified Parties from and against any
claims, demands, penalties, fines, liabilities, settlements, damages, costs and
expenses of whatever kind or nature, known or unknown, contingent or otherwise,
whether incurred or imposed within or outside the judicial process, including,
without limitation, reasonable attorneys’ fees and disbursements imposed upon
or incurred by or asserted against any of the Indemnified Parties by reason of
such requested actions or inactions and (B) Senior Lender shall have no
obligation to take or refrain from taking any action pursuant to this Section 15(r) (1) unless
and until such Junior Lender has cured all monetary Events of Default under the
Senior Loan Documents and all non-monetary Events of Default under the Senior
Loan Documents (other than those which are not susceptible of cure by Junior
Lender and which do not materially impair the value, use or operation of the
Premises) prior to the lapse of any cure periods set forth under Section 12(a)(ii) or
(2) if compliance with the provisions of this Section 15(r) would
(1) violate the Senior Loan Documents or any law, rule or regulation
or (2) in the event that the Senior Loan or any interest therein is
included as an asset of a real estate mortgage investment conduit (“REMIC”) within the meaning of Section 860D(a) of
the Code, cause the Senior Loan (or portion thereof which is included in a
REMIC) to fail to qualify at all times as a “qualified mortgage” within the
meaning of Section 860G(a)(3) of the Code, or, subsequent to a
foreclosure or delivery of a deed in lieu thereof, fail to qualify the
Premises, as “foreclosure property” within the meaning of Section 860G(a)(8) of
the Code.  In addition, notwithstanding
anything to the contrary contained herein, if Senior Lender determines, in
accordance with Accepted Servicing Practices, that any other action in
connection with a Ground Lease Default is necessary to preserve the related
Ground Lease or to 

 

82

 

protect or preserve the lien of the Mortgage, Senior
Lender may take any such action; provided, in either event, that Senior
Lender or any servicer on its behalf shall not be obligated to expend or
advance any of its own funds if such Person determines that such expenditure or
advance would constitute a non-recoverable advance under the terms of any
servicing agreement governing the administration of the Senior Loan (it being
agreed that in the event Junior Lender delivers to Senior Lender sums
sufficient to cure any monetary default under the Ground Lease, the expenditure
of such sums shall not be deemed a non-recoverable expenditure).

 

(vi)          Any sums due to Senior Lender from a Junior Lender under
this Section 15(r) or reasonably requested by Senior Lender in
anticipation of incurring any expenses required to be paid by such Junior Lender
pursuant to this Section 15(r), shall be paid within ten (10) Business
Days of demand by Senior Lender.  Failure
to pay any such sums within five (5) Business Days of Senior Lender’s
written notification to such Junior Lender that such Junior Lender failed to
comply with the requirements of the immediately preceding sentence will
constitute a waiver by such Junior Lender of any rights it may have under this Section 15(r).

 

(vii)         Notwithstanding anything to the contrary contained herein,
if Senior Lender and/or one or more Junior Lenders elect to exercise any rights
granted to a Junior Lender under this Section 15(r), Senior Lender
and each Senior Junior Lender acknowledge and agree that, as between Senior
Lender and each Junior Lender, the most junior Subordinate Junior Lender shall
have the superior right to exercise such rights.

 

(viii)        Nothing contained herein shall be deemed
to grant any Junior Lender the right to cure a Ground Lease Default beyond the
period for cure afforded to the Senior Lender or Junior Lender under the Ground
Lease (or any agreement entered into with the ground lessor thereunder).

 

(s)           Subordination
of Ground Lease.  Senior Lender shall
not consent to the subordination of any Ground Lease to any fee mortgage,
except to the extent such subordination is required as a condition to receiving
a New Lease, without the prior written consent of each Junior Lender, which
consent shall not be unreasonably withheld, conditioned or delayed.

 

(t)            Modification
of the Ground Lease.  Senior Lender
shall not consent to a modification or termination of the Ground Lease, except
to the extent Senior Lender has the obligation to so consent in the Senior Loan
Documents, without the prior written consent of each Junior Lender, which
consent shall not be unreasonably withheld, conditioned or delayed.  Senior Lender shall use commercially
reasonable efforts to forward to each Junior Lender any notice Senior Lender
receives under each Ground Lease; provided, however, that failure
of Senior Lender to deliver such notice shall not impose any liability on
Senior Lender nor modify the obligations of the parties hereunder.

 

Section 16.             Financing
of the Junior Loans. 
(a)  Notwithstanding any other provision hereof but subject to
the provisions of Section 16(b), Senior Lender and each Junior

 

83

 

Lender hereby consents to each Junior Lender’s pledge (a “Pledge”) of its respective Junior Loan and of the Separate
Collateral to any entity which has extended a credit facility to such Junior
Lender that is a Qualified Transferee or a financial institution whose
long-term unsecured debt is rated at least “A” (or the equivalent) or better by
each Rating Agency (a “Loan Pledgee”),
on the terms and conditions set forth in this Section 16, it is
also agreed that the sale by a Junior Lender of its respective Junior Loan to a
Qualified Transferee and the simultaneous agreement by such Junior Lender to
repurchase its Junior Loan under an arrangement documented as a repurchase
agreement (the “Repo Agreement”) shall qualify as
a Pledge, provided all applicable terms and conditions of this subsection (a) are
complied with; provided  further that a Loan Pledgee which is not
a Qualified Transferee may not take title to the Separate Collateral without a
Rating Agency Confirmation.  Upon written
notice by a Junior Lender to Senior Lender and the other Junior Lenders that
the Pledge has been effected, Senior Lender and each Junior Lender agrees to
acknowledge receipt of such notice and thereafter agrees:  (i) to give Loan Pledgee written notice
of any default by the applicable Junior Lender under this Agreement of which
default Senior Lender or such Junior Lender has actual knowledge; (ii) to
allow Loan Pledgee a period of ten (10) days (in respect of a monetary
default) and thirty (30) days (in respect of a non-monetary default) by the
applicable Junior Lender in respect of its obligations to Senior Lender or such
Junior Lender hereunder, but Loan Pledgee shall not be obligated to cure any
such default; (iii) that no amendment or modification of this Agreement
which adversely affects the rights or obligations of the Junior Lender which
has made a Pledge to such Loan Pledgee, and no waiver or termination of any
applicable Junior Lender’s rights under this Agreement, shall be effective
against Loan Pledgee without the written consent of Loan Pledgee, which consent
shall not be unreasonably withheld; provided, however, the
consent of the Loan Pledgee shall not be required unless the applicable Junior
Lender’s consent was required pursuant to the terms of this Agreement to effect
such modification, waiver or termination; (iv) that Senior Lender shall
give to Loan Pledgee copies of any Senior Loan Default Notice and each Junior
Lender shall give to Loan Pledgee copies of any Junior Loan Default Notice
issued by such Junior Lender simultaneously with the giving of same to the
applicable Junior Lender and accept any cure thereof by Loan Pledgee made in
accordance with the provisions of Section 12 of this Agreement as if such
cure were made by the applicable Junior Lender; (v) that Senior Lender and
each Junior Lender shall deliver to Loan Pledgee such estoppel certificate(s) as
Loan Pledgee shall reasonably request, provided that any such estoppel
certificate(s) shall be in the form contemplated by Section 19
or in such other form reasonably acceptable to Senior Lender and such Junior
Lender; and (vi) that, upon written notice (a “Redirection
Notice”) to Senior Lender or a Junior Lender by Loan Pledgee that either
(x) states that the pledging Junior Lender is in default, beyond
applicable cure periods, under such Junior Lender’s obligations to Loan Pledgee
pursuant to the applicable credit agreement (or Repo Agreement) between such
Junior Lender and Loan Pledgee (which notice need not be joined in or confirmed
by such Junior Lender), or (y) is joined in or confirmed by such pledging
Junior Lender countersigning the Redirection Notice, and until such Redirection
Notice is withdrawn or rescinded by Loan Pledgee, Senior Lender and each Junior
Lender shall remit to the applicable Loan Pledgee and not to the applicable
Junior Lender, any payments that Senior Lender or a Junior Lender would
otherwise be obligated to pay to such Junior Lender from time to time pursuant
to this Agreement, any Senior Loan Document, any Junior Loan Document or any
other agreement between Senior Lender or any Junior Lender that relates to the
Senior Loan or a Junior Loan.  

 

84

 

Each Junior Lender hereby unconditionally and absolutely releases
Senior Lender and the other Junior Lenders from any liability to such Junior
Lender on account of Senior Lender’s or a Junior Lender’s compliance with any
Redirection Notice believed by Senior Lender or a Junior Lender to have been
delivered by such Junior Lender’s Loan Pledgee. 
Loan Pledgee shall be permitted to fully exercise its rights and
remedies against the applicable Junior Lender, and realize on any and all
collateral granted by the applicable Junior Lender to Loan Pledgee (and accept
an assignment in lieu of foreclosure as to such collateral), in accordance with
applicable law.  In such event, the
Senior Lender and each of the other Junior Lenders shall recognize Loan Pledgee
(and any transferee which is also a Qualified Transferee at any foreclosure or
similar sale held by Loan Pledgee or any transfer in lieu of such foreclosure),
and its successors and assigns, as the successor to the applicable Junior
Lender’s rights, remedies and obligations under this Agreement and the Junior
Loan Documents and any such Loan Pledgee or Qualified Transferee shall assume
in writing (for the benefit of Senior Lender and the other Junior Lenders and
their respective successors and assigns) the obligations of the applicable
Junior Lender hereunder accruing from and after such Transfer and agrees to be
bound by the terms and provisions hereof, it being agreed that, notwithstanding
anything to the contrary contained herein, such Loan Pledgee shall not be
required to so assume applicable Junior Lender’s obligations hereunder prior to
such realization on such collateral.  The
rights of Loan Pledgee under this Section 16 shall remain effective
unless and until Loan Pledgee shall have notified the Senior Lender and Junior Lenders
in writing that its interest in the applicable Junior Loan has terminated.

 

(b)           Notwithstanding
any provisions herein to the contrary, if a conduit (“Conduit”)
which is not a Qualified Transferee provides financing to Junior Lender, then
such Conduit will be a permitted “Loan Pledgee” despite the fact it is not a
Qualified Transferee if the following conditions are satisfied:

 

(i)            the loan (the “Conduit Inventory Loan”)
made by the Conduit to the Junior Lender to finance the acquisition and holding
of its interest in the Junior Lender’s Junior Loan will require a third party
(the “Conduit Credit Enhancer”) to provide
credit enhancement;

 

(ii)           the Conduit Credit Enhancer and the administrator of the
Conduit will be a Qualified Transferee;

 

(iii)          the pledging Junior Lender will pledge (or sell, transfer
or assign as part of a repurchase facility) its interest in the Junior Loan to
the Conduit as collateral for the Conduit Inventory Loan;

 

(iv)          the Conduit Credit Enhancer and the Conduit will agree
that, if Junior Lender defaults under the Conduit Inventory Loan, or if the
Conduit is unable to refinance its outstanding commercial paper even if there
is no default by Junior Lender, the Conduit Credit Enhancer will purchase the
Conduit Inventory Loan from the Conduit, and the Conduit will assign the pledge
of Junior Lender’s interest in the Junior Loan to the Conduit Credit Enhancer;
and

 

85

 

(v)           unless the Conduit is in fact then a Qualified Transferee,
the Conduit will not without obtaining a Rating Agency Confirmation from each
Rating Agency have any greater right to acquire the interests in the Junior
Loan pledged by the Junior Lender, by foreclosure or otherwise, than would any
other purchaser that is not a Qualified Transferee at a foreclosure sale
conducted by a Loan Pledgee.

 

Section 17.             Obligations
Hereunder Not Affected. 
(a)  All rights, interests, agreements and obligations of
Senior Lender and each Junior Lender under this Agreement shall remain in full
force and effect irrespective of:

 

(b)           any
lack of validity or enforceability of any of the Senior Loan Documents or any
of the Junior Loan Documents or any other agreement or instrument relating
thereto;

 

(c)           any
taking, exchange, release or non-perfection of any other collateral, or any
taking, release or amendment or waiver of or consent to or departure from any
guaranty, for all or any portion of the Senior Loan or the Junior Loans;

 

(d)           any
manner of application of collateral, or proceeds thereof, to all or any portion
of the Senior Loan or the Junior Loans, or any manner of sale or other
disposition of any collateral for all or any portion of the Senior Loan or the
Junior Loans or any other assets of Senior Borrower or Junior Borrowers or any
other Affiliates of Senior Borrower or any Junior Borrower;

 

(e)           any
change, restructuring or termination of the ownership structure or existence of
Borrower, Junior Borrowers or any other Affiliates of Senior Borrower; or

 

(f)            any
other circumstance which might otherwise constitute a defense available to, or
a discharge of, Senior Borrower, any Junior Borrower or a subordinated creditor
or Senior Lender or any Junior Lender subject to the terms hereof.

 

(g)           This
Agreement shall continue to be effective or be reinstated, as the case may be,
if at any time any payment of all or any portion of the Senior Loan or a Junior
Loan is rescinded or must otherwise be returned by Senior Lender or a Junior
Lender upon the insolvency, bankruptcy or reorganization of Senior Borrower or
a Junior Borrower or otherwise, all as though such payment had not been made.

 

Section 18.             Notices.  All notices, consents, approvals and requests
(any of the foregoing, a “Notice”)
required or permitted hereunder or under any other Loan Document shall be given
in writing and shall be effective for all purposes if (i) hand-delivered;
(ii) sent by (A) certified or registered United States mail, postage
prepaid, return receipt requested or (B) expedited prepaid delivery
service, either commercial or United States Postal Service, with proof of
attempted delivery, or (iii) sent by telecopier (with advice by telephone
to recipient that a telecopy notice is forthcoming and a machine-generated
confirmation of successful transmission), addressed as follows (or at such
other address and Person as shall be designated from time to time by any party
hereto, as the case may be, in a written notice to the other parties hereto in
the manner provided for in this Section):

 

86

 

To Senior Lender:

 

JPMorgan
Chase Bank, N.A.

c/o
Centerline Servicing Inc.

5221
N. O’Connor Blvd., Suite 600

Irving,
Texas 75039

Attention:
John Roach

Senior
Vice President, Asset Management

Facsimile
No. (972) 868-5493

 

With a copy to:

 

Cadwalader,
Wickersham & Taft LLP

One
World Financial Center

New
York, NY  10281

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

Facsimile
No.:  (212) 504-6666

 

To each of First Mezzanine  Lender, Second Mezzanine Lender, Third
Mezzanine Lender, Fourth Mezzanine Lender, Fifth Mezzanine Lender, Sixth
Mezzanine Lender and Seventh Mezzanine Lender:

 

JPMorgan
Chase Bank, N.A.

c/o
Centerline Servicing Inc.

5221
N. O’Connor Blvd., Suite 600

Irving,
Texas 75039

Attention:
John Roach

Senior
Vice President, Asset Management

Facsimile
No. (972) 868-5493

 

With
a copy to:

 

Cadwalader,
Wickersham & Taft LLP

One
World Financial Center

New
York, NY  10281

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

Facsimile
No.:  (212) 504-6666

 

A
notice shall be deemed to have been given: 
in the case of hand delivery, at the time of delivery; in the case of
registered or certified mail, when delivered or the first attempted delivery on
a Business Day; in the case of expedited prepaid delivery, upon the first
attempted delivery on a Business Day; or in the case of telecopy, upon sender’s
receipt of a machine-generated confirmation of successful transmission after
advice by telephone to recipient that a telecopy notice is forthcoming.

 

Section 19.             Estoppel.  (a)  Each Junior Lender shall,
within ten (10) days following a request from Senior Lender or another
Junior Lender, provide Senior Lender or 

 

87

 

such Junior Lender with a written statement setting forth the then
current outstanding principal balance of the Junior Loan held by such Junior
Lender, the aggregate accrued and unpaid interest under the Junior Loan held by
such Junior Lender, and stating whether to such Junior Lender’s knowledge any
default or Event of Default exists under the Junior Loan held by such Junior
Lender or this Agreement.

 

(b)           Senior
Lender shall, within ten (10) days following a request from a Junior
Lender, provide such Junior Lender with a written statement setting forth the
then current outstanding principal balance of the Senior Loan, the aggregate
accrued and unpaid interest under the Senior Loan, and stating whether to
Senior Lender’s knowledge any default or Event of Default exists under the
Senior Loan or this Agreement.

 

(c)           Any
statement provided pursuant to this Section 19 may be relied upon
by any Loan Pledgee, any investor or participant in the Senior Loan or any
Junior Loan, or any purchaser of the Senior Loan or any Junior Loan (or of any
interest or a participation interest therein), but may not be relied upon by
Senior Borrower, any Junior Borrower or any guarantor with respect to the
Senior Loan or any Junior Loan.

 

Section 20.             Further
Assurances.  So long as all or any
portion of the Senior Loan or any Junior Loan remains unpaid and any Senior
Loan Document encumbers the Premises or a Junior Loan Document encumbers the
Equity Collateral, Senior Lender and each Junior Lender shall each execute,
acknowledge and deliver in recordable form and upon demand of the other, any
other instruments or agreements reasonably required in order to carry out the
provisions of this Agreement or to effectuate the intent and purposes hereof.

 

Section 21.             No
Third Party Beneficiaries; No Modification. 
The parties hereto do not intend the benefits of this Agreement to inure
to Senior Borrower, any Junior Borrower or any other Person other than the
parties hereto and the successors and permitted assigns and a Loan
Pledgee.  This Agreement may not be changed
or terminated orally, but only by an agreement in writing signed by the party
against whom enforcement of any change is sought.  If any Certificates are outstanding, this
Agreement will not be amended in any material respect unless a Rating Agency
Confirmation has been obtained with respect to such amendment.

 

Section 22.             Successors
and Assigns.  This Agreement shall
bind all successors and permitted assigns of each Junior Lender and Senior
Lender and shall inure to the benefit of all successors and permitted assigns
of Senior Lender and each Junior Lender.

 

Section 23.             Counterpart
Originals.  This Agreement may be
executed in counterpart originals, each of which shall constitute an original,
and all of which together shall constitute one and the same agreement.

 

Section 24.             Governing
Law; Waiver of Jury Trial.  THIS AGREEMENT AND THE RESPECTIVE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY
WITHIN SUCH 

 

88

 

STATE.  EACH OF THE PARTIES
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

Section 25.             Consents
to Jurisdiction.  Each of the parties
hereto irrevocably and unconditionally submits to the jurisdiction of the
United States District Court for the Southern District of New York, any court
in the State of New York located in the borough of Manhattan in the city and
county of New York, and any appellate court from any thereof, in any action,
proceeding or counterclaim arising out of or relating to this Agreement or the
transactions contemplated hereunder or for recognition or enforcement of any
judgment and each of the parties hereto irrevocably and unconditionally agrees
that all claims in respect of any action, proceeding or counterclaim arising
out of or relating to this Agreement or the transactions contemplated hereunder
may be heard or determined in such New York State court or, to the extent
permitted by law, in such federal court.

 

Section 26.             No
Waiver by Senior Lender or Junior Lenders. 
Senior Lender shall not be prejudiced in its rights under this Agreement
by any act or failure to act by Senior Borrower or any Junior Lender, or any
non-compliance of Senior Borrower or any Junior Lender with any agreement or
obligation, regardless of any knowledge thereof which Senior Lender may have or
with which Senior Lender may be charged; and no action of Senior Lender
permitted hereunder shall in any way affect or impair the rights of Senior
Lender and the obligations of Junior Lender under this Agreement.  No delay on the part of Senior Lender in the
exercise of any rights or remedies shall operate as a waiver thereof, and no
single or partial exercise by Senior Lender of any right or remedy shall
preclude other or further exercise thereof or the exercise of any other right
or remedy; nor shall any modification or waiver of any of the provisions of
this Agreement be binding upon Senior Lender except as expressly set forth in a
writing duly signed and delivered on behalf of Senior Lender.  No Junior Lender shall be prejudiced in its
rights under this Agreement by any act or failure to act by Senior Borrower or
Senior Lender or any Junior Borrower or other Junior Lender, or any
non-compliance of Senior Borrower or Senior Lender or any Junior Borrower or
other Junior Lender with any agreement or obligation, regardless of any
knowledge thereof which Junior Lender may have or with which Junior Lender may
be charged; and no action of Junior Lender permitted hereunder shall in any way
affect or impair the rights of such Junior Lender and the obligations of Senior
Lender and any other Junior Lenders under this Agreement.  No delay on the part of Junior Lender in the
exercise of any rights or remedies shall operate as a waiver thereof, and no
single or partial exercise by Junior Lender of any right or remedy shall
preclude other right or remedy; nor shall any modification or waiver of any of
the provisions of this Agreement be binding upon Junior Lender except as
expressly set forth in a writing duly signed and delivered on behalf of Junior
Lender.  The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

 

Section 27.             No
Joint Venture.  Nothing provided
herein is intended to create a joint venture, partnership, tenancy-in-common or
joint tenancy relationship between or among any of the parties hereto.

 

89

 

Section 28.                                      Captions.  The captions in this Agreement are inserted
only as a matter of convenience and for reference, and are not and shall not be
deemed to be a part hereof.

 

Section 29.                                      Conflicts.  In the event of any conflict, ambiguity or
inconsistency between the terms and conditions of this Agreement and the terms
and conditions of any of the Senior Loan Documents or the Junior Loan
Documents, the terms and conditions of this Agreement shall prevail, as between
Senior Lender and each Junior Lender, but shall not inure to the benefit of
Borrower or any Junior Borrower.

 

Section 30.                                      No Release.  Nothing herein contained shall operate
(a) to release Senior Borrower from (i) its obligation to keep and
perform all of the terms, conditions, obligations, covenants and agreements
contained in the Senior Loan Documents or (ii) any liability of Senior
Borrower under the Senior Loan Documents or (b) to release any Junior
Borrower from (i) its obligation to keep and perform all of the terms,
conditions, obligations, covenants and agreements contained in the applicable
Junior Loan Documents or (ii) any liability of a Junior Borrower under its
respective Junior Loan Documents.

 

Section 31.                                      Continuing
Agreement.  This
Agreement is a continuing agreement and shall remain in full force and effect
until the earlier of (x) payment in full of the Senior Loan and all of the
Junior Loans or (y) transfer of title to the Junior Lenders of their
respective Separate Collateral (provided, however, in such
instance this Agreement shall terminate with respect to any Junior Lender who
acquires title to its respective Equity Collateral and any applicable
Subordinate Junior Lenders) or (z) the transfer of all of the Premises by
foreclosure of the Senior Loan Documents or the exercise of power of sale
contained therein by deed-in-lieu of foreclosure; provided, however,
that any rights or remedies of any party hereto arising out of any breach of
any provision hereof occurring prior to the date of termination shall survive
such termination.  In the event the
Senior Loan is repaid in full, (x) the Senior Junior Lender with the
highest priority shall have the right to exercise all of the rights granted to
Senior Lender pursuant to this Agreement and shall, from and after the
repayment in full, be deemed to be the “Senior Lender”
and to be the holder of the “Senior Loan”
for all purposes without requiring the amendment of this Agreement,
(y) references hereafter to the Senior Loan Agreement shall be deemed to
be references to the First Mezzanine 
Loan Agreement and (z) references to “transfer of the Premises by
foreclosure sale, sale by power of sale or delivery of a deed in lieu of
foreclosure” (or words of similar import) shall be deemed to be references to
transfer of the First Mezzanine  Lender’s
Equity Collateral pursuant to any Equity Collateral Enforcement Action.  Notwithstanding the foregoing provisions of
this Section 31, in the event the Senior Loan or any Junior Loan is
repaid in full, the Senior Lender or Junior Lender that was the holder of such
repaid loan shall have no further rights under this Agreement, but this
Agreement shall remain in effect as to any outstanding Junior Lender.  Notwithstanding any termination of this
Agreement with respect to any party hereto, each party hereto agrees that the
restrictions regarding release of collateral set forth in Section 8
above shall remain enforceable with respect to any letter(s) of credit
held by Senior Lender or any Junior Lender except as may be required pursuant
to the Senior Loan Documents, the applicable Junior Loan Documents or
applicable law.

 

90

 

Section 32.                                      Severability.  In the event that any provision of this
Agreement or the application hereof to any party hereto shall, to any extent,
be invalid or unenforceable under any applicable statute, regulation, or rule of
law, then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform to such statute,
regulation or rule of law, and the remainder of this Agreement and the
application of any such invalid or unenforceable provisions to parties,
jurisdictions or circumstances other than to whom or to which it is held
invalid or unenforceable, shall not be affected thereby nor shall same affect
the validity or enforceability of any other provision of this Agreement.

 

Section 33.                                      Expenses.  (a)  To the extent not paid by
Senior Borrower or out of or from any collateral securing the Senior Loan which
is realized by Senior Lender, each Junior Lender agrees upon demand to pay to
Senior Lender the amount of any and all reasonable expenses, including, without
limitation, the reasonable fees and expenses of its counsel and of any experts
or agents, which Senior Lender may incur in connection with the
(i) exercise or enforcement of any of the rights of Senior Lender against
such Junior Lender hereunder to the extent that Senior Lender is the prevailing
party in any dispute with respect thereto or (ii) failure by such Junior
Lender to perform or observe any of the provisions hereof.

 

(b)                                 To the extent
not paid by a Junior Borrower out of or from any collateral securing the
related Junior Loan which is realized by the applicable Junior Lender, Senior
Lender agrees upon demand to pay to such Junior Lender the amount of any and
all reasonable expenses, including, without limitation, the reasonable fees and
expenses of its counsel and of any experts or agents, which such Junior Lender
may incur in connection with the (i) exercise or enforcement of any of the
rights of such Junior Lender against Senior Lender hereunder to the extent that
such Junior Lender is the prevailing party in any dispute with respect thereto
or (ii) failure by Senior Lender to perform or observe any of the provisions
hereof.

 

(c)                                  To the extent
not paid by a Junior Borrower out of or from any collateral securing the
related Junior Loan which is realized by the applicable Junior Lender, each
other Junior Lender agrees upon demand to pay to such Junior Lender the amount
of any and all reasonable expenses, including, without limitation, the
reasonable fees and expenses of its counsel and of any experts or agents, which
such Junior Lender may incur in connection with the (i) exercise or
enforcement of any of the rights of such Junior Lender against such other
Junior Lender hereunder to the extent that such Junior Lender is the prevailing
party in any dispute with respect thereto or (ii) failure by such other
Junior Lender to perform or observe any of the provisions hereof.

 

Section 34.                                      Injunction.  Each party to this Agreement acknowledges
(and waives any defense based on a claim) that monetary damages are not an
adequate remedy to redress a breach by the other hereunder and that a breach by
any party hereunder would cause irreparable harm to any other party to this
Agreement.  Accordingly, each party to
this Agreement agrees that upon a breach of this Agreement by any other party,
the remedies of injunction, declaratory judgment and specific performance shall
be available to such non-breaching party.

 

91

 

Section 35.                                      Mutual
Disclaimer. 
(a)  Senior Lender and the Junior Lenders are each
sophisticated lenders and/or investors in real estate and their respective
decision to enter into the Senior Loan and the Junior Loans is based upon their
own independent expert evaluation of the terms, covenants, conditions and
provisions of, respectively, the Senior Loan Documents and the Junior Loan
Documents and such other matters, materials and market conditions and criteria
which each of Senior Lender and the Junior Lenders deem relevant.  Each of Senior Lender and each of the Junior
Lenders has not relied in entering into this Agreement, and respectively, the
Senior Loan, the Senior Loan Documents, the Junior Loans and the Junior Loan
Documents upon any oral or written information, representation, warranty or
covenant from any other party hereto (or any oral or written information,
representation, warranty or covenant from any other party’s representatives,
employees, Affiliates or agents) other than the representations and warranties,
if any, of such other party contained herein and therein.  Each of Senior Lender and each of the Junior
Lenders further acknowledges that no employee, agent or representative of the
other has been authorized to make, and that each of Senior Lender and the
Junior Lenders have not relied upon, any statements, representations,
warranties or covenants other than those specifically contained in this
Agreement.  Without limiting the
foregoing, each of Senior Lender and each of the Junior Lenders acknowledges
that the other has made no representations or warranties as to the Senior Loan
or the Junior Loans or the Premises except as set forth herein (including,
without limitation, the cash flow of the Premises, the value, marketability,
condition or future performance thereof, the existence, status, adequacy or
sufficiency of the leases, the tenancies or occupancies of the Premises, or the
sufficiency of the cash flow of the Premises, to pay all amounts which may
become due from time to time pursuant to the Senior Loan or the Junior Loans).

 

(b)                                 Each of Senior
Lender and each of the Junior Lenders acknowledges that the Senior Loan, the
Senior Loan Documents, each of the Junior Loans, and each of the Junior Loan
Documents are distinct, separate transactions and loans, separate and apart
from each other.  Each of Senior Lender
and each of the Junior Lenders acknowledges that the other are distinct
separate lenders with distinct and separate loans with various rights and
remedies with respect to the Premises which are not in all respects aligned.

 

Section 36.                                      Indemnification.  Each Junior Lender shall, as to notices
delivered by it, indemnify Senior Lender from and against any and all
liabilities, obligations, losses, damages, penalties and expenses of any kind
or nature whatever that may be imposed on, incurred by or asserted against
Senior Lender in any manner relating to or arising out of Senior Lender’s good
faith reliance on any notice of default delivered by such Junior Lender to
Senior Lender pursuant to which any excess cash flow that would otherwise be
remitted to Senior Borrower pursuant to the Senior Loan Documents is instead
transferred to such Junior Lender pursuant to the its respective Junior Loan
Documents.

 

Section 37.                                      Affiliated
Mezzanine Lender.  (a) Notwithstanding
anything in this Agreement to the contrary, in the event that at any time any
Person who owns, directly or indirectly, more than 50% of an economic, legal or
other beneficial interest in Senior Borrower or which has the power, directly
or indirectly, to direct or cause the direction of the management or policies
of Senior Borrower, is the direct or indirect holder of more than 25% of any
Junior Loan, whether as a co-lender, participant or otherwise, or otherwise
Controls such Junior Lender (an “Affiliate Junior Lender”),
such Affiliate Junior Lender shall not be 

 

92

 

entitled to exercise (or to
cause to be exercised, through the exercise of voting rights, contracts rights,
or otherwise) any of the benefits, rights (including, but not limited to,
consent and approval rights) or remedies otherwise available to such Junior
Lender pursuant to this Agreement under Sections 6, 8, 10(b)-(d),
12(a)(i)-(ii), 12(b), 13, 15, 19(b) or 34 hereof or to make any
Protective Advances pursuant to or in connection with the applicable Junior
Loan Documents; provided, however, that such Affiliate Junior
Lender shall otherwise in all events remain subject to and be bound by all of
the duties, obligations, covenants, representations, warranties, restrictions,
conditions and liabilities of a Junior Lender under this Agreement.  Notwithstanding anything hereinto contrary,
Junior Lender shall be permitted to (i) Transfer the applicable Junior
Loan pursuant to and in accordance with the terms and provisions of Section 5,
and (ii) modify the applicable Junior Loan Documents pursuant to and in
accordance with the terms and provisions of Section 8(b) and 8(c).

 

(b)                                 Each Affiliate
Junior Lender shall also be subject to the following limitations and
restrictions:

 

(i)                                     so long as the
Senior Loan Liabilities shall remain unsatisfied, such Affiliate Junior Lender
shall not take any of the following actions (or cause, through the exercise of
voting rights, contract rights or otherwise, any of the following actions to be
taken):

 

(A)                              take, sue for,
ask or demand from any Senior Junior Borrower or Senior Borrower any payment on
account of the Junior Loan in which it has an interest; or

 

(B)                                commence any
judicial or non-judicial action or proceeding to (I) collect the Rents, or
(II) have a receiver appointed to collect the Rents or take any other
actions with respect to the Premises;

 

(C)                                interfere with
Senior Lender or any Senior Junior Lender in its administration and enforcement
of the Senior Loan or the applicable Senior Junior Loan and their respective
rights and remedies thereunder and pursuant to the Senior Loan Documents or the
applicable Senior Junior Loan Documents;

 

(D)                               commence,
prosecute or participate in any suit, action, case or proceeding against Senior
Borrower or any Senior Junior Borrower in violation of the express provisions
of this Agreement or violate any of the other express terms or provisions of
this Agreement, and, in the event of any such violation, Senior Lender or such
Senior Junior Lender may intervene and interpose such defense or plea as it
shall elect, including that of bad faith filing by such Affiliate Junior Lender,
and shall, in any event, be entitled to restrain such actions in the same suit,
action, case or proceeding or in any independent suit, action, case or
proceeding; or

 

(E)                                 enforce against
Senior Borrower or any Senior Junior Borrower any right of such Affiliate
Junior Lender to approve, consent to or set standards with respect to
(A) any lease for any portion of the Premises, (B) any operating 

 

93

 

or capital budget for the
Premises, (C) any proposed alteration or modification of the Premises, or
(D) any other matter relating to the operation, maintenance, management,
repair and leasing of the Premises; and

 

(ii)                                  such Affiliate
Junior Lender shall not be entitled to (and hereby waives any right which it
would otherwise have to require) promptness, diligence, notice of acceptance or
any other notice with respect to the Senior Loan or any Senior Junior Loan, and
Senior Lender or any Senior Junior Lender shall have no obligation to protect,
secure, perfect or insure any security interest or lien on any property for the
benefit of such Affiliate Junior Lender or exhaust any right or take any action
against Senior Borrower or any Senior Junior Borrower or any other Person or
property for the benefit of such Affiliate Junior Lender.

 

(c)                                  Notwithstanding
anything hereinto the contrary, an Affiliate Junior Lender may exercise its
rights pursuant to Section 14 hereof so long as such Affiliate
Junior Lender also pays as part of the Senior Junior Loan Purchase Price, any liquidated
damage amount, any exit fees and any prepayment premiums, any spread
maintenance or yield maintenance charges, any late charges or any default
interest incurred or accrued with respect to each Senior Junior Loan.

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

94

 

IN WITNESS WHEREOF, Senior Lender and the Junior
Lenders have executed this Agreement as of the date and year first set forth
above.

 

 

	
   

  	
  SENIOR LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., a banking
  association chartered under the laws of the United States of America

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FIRST MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., a banking
  association chartered under the laws of the United States of America

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SECOND MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., a banking
  association chartered under the laws of the United States of America

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  THIRD MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., a banking
  association chartered under the laws of the United States of America

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FOURTH MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., a banking
  association chartered under the laws of the United States of America

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FIFTH MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., a banking
  association chartered under the laws of the United States of America

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  SIXTH MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., a banking
  association chartered under the laws of the United States of America

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SEVENTH MEZZANINE LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., a banking
  association chartered under the laws of the United States of America

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

SCHEDULE 1

 

BORROWERS

 

SENIOR BORROWER:

 

	
   

  	
  1.

  	
  301 HCR Properties of Oklahoma City (Northwest), LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  304 HCR Properties of Midwest City OK, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  306 HCR Properties of Oklahoma City (Southwest), LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
  307 HCR Properties of Tulsa OK, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  5.

  	
  503 HCR Properties-Stratford Hall of Richmond VA, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  6.

  	
  512 HCR Properties-Columbia SC, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  7.

  	
  526 HCR Properties-Lexington SC, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  8.

  	
  527 HCR Properties of Arlington VA, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  9.

  	
  531 HCR Properties-West Ashley-Charleston SC, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  10.

  	
  539 HCR Properties-Fair Oaks of Fairfax VA, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  11.

  	
  553 HCR Properties-Imperial of Richmond VA, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  12.

  	
  670 HCR Properties-Arden Courts of Annandale VA, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  13.

  	
  4015 HCR Properties-Charleston of Hanahan SC, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  14.

  	
  4031 HCR Properties-Oakmont of Union SC, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  15.

  	
  4032 HCR Properties-Oakmont East-Greenville SC, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  16.

  	
  4033 HCR Properties-Oakmont West-Greenville SC, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  17.

  	
  4071 HCR Properties-Medical Care Center-Lynchburg VA, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  18.

  	
  4074 HCR Properties of Alexandria VA, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  19.

  	
  HCR ManorCare Maryland Properties II, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  20.

  	
  HCR ManorCare Properties, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  21.

  	
  HCR ManorCare West Virginia Properties, LLC

  

 

1

 

FIRST MEZZANINE BORROWER:

 

	
   

  	
  1.

  	
  HCR I-A Properties, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  HCR I-B Properties, LLC

  

 

SECOND MEZZANINE BORROWER:

 

	
   

  	
  1.

  	
  HCR II Properties, LLC

  

 

THIRD MEZZANINE BORROWER:

 

	
   

  	
  1.

  	
  HCR III Properties, LLC

  

 

FOURTH MEZZANINE BORROWER:

 

	
   

  	
  1.

  	
  HCR IV Properties, LLC

  

 

FIFTH MEZZANINE BORROWER:

 

	
   

  	
  1.

  	
  HCR V Properties, LLC

  

 

SIXTH MEZZANINE BORROWER:

 

	
   

  	
  1.

  	
  HCR VI Properties, LLC

  

 

SEVENTH MEZZANINE BORROWER:

 

	
   

  	
  1.

  	
  HCR VII Properties, LLC

  

 

each of the above, a
Delaware limited liability company

 

2

 

EXHIBIT A

 

SENIOR LOAN DOCUMENTS

 

All Senior Loan Documents dated as of December 21,
2007, unless otherwise indicated.

 

	
  1.

  	
  Loan Agreement

  
	
   

  	
   

  
	
  2.

  	
  Guaranty Agreement

  
	
   

  	
   

  
	
  3.

  	
  Cash Management Agreement

  
	
   

  	
   

  
	
  4.

  	
  Collateral Assignment of Interest Rate Cap Agreement

  
	
   

  	
   

  
	
  5.

  	
  Environmental Indemnity Agreement

  
	
   

  	
   

  
	
  6.

  	
  Promissory Note

  
	
   

  	
   

  
	
  7.

  	
  Indemnity Guaranty Agreement (Maryland)

  
	
   

  	
   

  
	
  8.

  	
  A Mortgage, Assignment of Leases and Rents, Security Agreement and
  Fixture Filing for each of the applicable Properties

  
	
   

  	
   

  
	
  9.

  	
  A Deed of Trust, Assignment of Leases and Rents, Security Agreement
  and Fixture Filing for each of the applicable Properties

  
	
   

  	
   

  
	
  10.

  	
  A Deed to Secure Debt, Assignment of Leases and Rents, Security
  Agreement and Fixture Filing for each of the applicable Properties

  
	
   

  	
   

  
	
  11.

  	
  An Indemnity Deed of Trust, Assignment of Leases and Rents, Security
  Agreement and Fixture Filing for each of the Maryland Properties

  
	
   

  	
   

  
	
  12.

  	
  Assignment of Leases and Rents

  
	
   

  	
   

  
	
  13.

  	
  Indemnity Assignment of Leases and Rents

  
	
   

  	
   

  
	
  14.

  	
  UCC-1 Financing Statements

  
	
   

  	
   

  
	
  15.

  	
  Escrow Instruction Letter

  
	
   

  	
   

  
	
  16.

  	
  Contribution Agreement

  
	
   

  	
   

  
	
  17.

  	
  Cooperation Agreement

  
	
   

  	
   

  
	
  18.

  	
  O&M Agreements

  

 

1

 

	
  19.

  	
  Collateral Assignment of Security Agreement

  
	
   

  	
   

  
	
  20.

  	
  Collateral Assignments of Cross-Default Guaranty

  
	
   

  	
   

  
	
  21.

  	
  Title Policies

  
	
   

  	
   

  
	
  22.

  	
  Co-Lender Agreement

  
	
   

  	
   

  
	
  23.

  	
  Indemnity Guaranty

  
	
   

  	
   

  
	
  24.

  	
  Collateral Assignments of Management Agreement

  
	
   

  	
   

  
	
  25.

  	
  Subordination of Management Agreement

  

 

2

 

EXHIBIT B

 

FIRST MEZZANINE  LOAN DOCUMENTS

 

Dated as of December 21, 2007, unless
otherwise indicated.

 

	
  1.

  	
  First Mezzanine Loan Agreement

  
	
   

  	
   

  
	
  2.

  	
  First Mezzanine Promissory Note

  
	
   

  	
   

  
	
  3.

  	
  Guaranty Agreement (First Mezzanine Loan)

  
	
   

  	
   

  
	
  4.

  	
  Cash Management Agreement (First Mezzanine Loan)

  
	
   

  	
   

  
	
  5.

  	
  First Mezzanine Pledge Agreement

  
	
   

  	
   

  
	
  6.

  	
  Equity Certificate of Mortgage Borrowers

  
	
   

  	
   

  
	
  7.

  	
  Acknowledgment and Consent

  
	
   

  	
   

  
	
  8.

  	
  Environmental Indemnity Agreement (First Mezzanine Loan)

  
	
   

  	
   

  
	
  9.

  	
  Collateral Assignment of Interest Rate Cap (First Mezzanine Loan)

  
	
   

  	
   

  
	
  10.

  	
  UCC Policy

  
	
   

  	
   

  
	
  11.

  	
  Escrow Letter

  
	
   

  	
   

  
	
  12.

  	
  Assignment of Title Insurance Policy and Proceeds

  
	
   

  	
   

  
	
  13.

  	
  Cooperation Agreement

  

 

 

EXHIBIT C

 

SECOND MEZZANINE LOAN DOCUMENTS

 

Dated as of December 21, 2007, unless
otherwise indicated.

 

	
  1.

  	
  Second Mezzanine Loan Agreement

  
	
   

  	
   

  
	
  2.

  	
  Second Mezzanine Promissory Note

  
	
   

  	
   

  
	
  3.

  	
  Guaranty Agreement (Second Mezzanine Loan)

  
	
   

  	
   

  
	
  4.

  	
  Cash Management Agreement (Second Mezzanine Loan)

  
	
   

  	
   

  
	
  5.

  	
  Second Mezzanine Pledge Agreement

  
	
   

  	
   

  
	
  6.

  	
  Equity Certificate of First Mezzanine Borrower

  
	
   

  	
   

  
	
  7.

  	
  Acknowledgment and Consent

  
	
   

  	
   

  
	
  8.

  	
  Environmental Indemnity Agreement (Second Mezzanine Loan)

  
	
   

  	
   

  
	
  9.

  	
  Collateral Assignment of Interest Rate Cap (Second Mezzanine Loan)

  
	
   

  	
   

  
	
  10.

  	
  UCC Policy

  
	
   

  	
   

  
	
  11.

  	
  Escrow Letter

  
	
   

  	
   

  
	
  12.

  	
  Assignment of Title Insurance Policy and Proceeds

  
	
   

  	
   

  
	
  13.

  	
  Cooperation Agreement

  

 

 

EXHIBIT D

 

THIRD MEZZANINE LOAN DOCUMENTS

 

Dated as of December 21, 2007, unless
otherwise indicated.

 

	
  1.

  	
  Third Mezzanine Loan Agreement

  
	
   

  	
   

  
	
  2.

  	
  Third Mezzanine Promissory Note

  
	
   

  	
   

  
	
  3.

  	
  Guaranty Agreement (Third Mezzanine Loan)

  
	
   

  	
   

  
	
  4.

  	
  Cash Management Agreement (Third Mezzanine Loan)

  
	
   

  	
   

  
	
  5.

  	
  Third Mezzanine Pledge Agreement

  
	
   

  	
   

  
	
  6.

  	
  Equity Certificate of Second Mezzanine Borrower

  
	
   

  	
   

  
	
  7.

  	
  Acknowledgment and Consent

  
	
   

  	
   

  
	
  8.

  	
  Environmental Indemnity Agreement (Third Mezzanine Loan)

  
	
   

  	
   

  
	
  9.

  	
  Collateral Assignment of Interest Rate Cap (Third Mezzanine Loan)

  
	
   

  	
   

  
	
  10.

  	
  UCC Policy

  
	
   

  	
   

  
	
  11.

  	
  Escrow Letter

  
	
   

  	
   

  
	
  12.

  	
  Assignment of Title Insurance Policy and Proceeds

  
	
   

  	
   

  
	
  13.

  	
  Cooperation Agreement

  

 

 

EXHIBIT E

 

FOURTH MEZZANINE LOAN DOCUMENTS

 

Dated as of December 21, 2007, unless
otherwise indicated.

 

	
  1.

  	
  Fourth Mezzanine Loan Agreement

  
	
   

  	
   

  
	
  2.

  	
  Fourth Mezzanine Promissory Note

  
	
   

  	
   

  
	
  3.

  	
  Guaranty Agreement (Fourth Mezzanine Loan)

  
	
   

  	
   

  
	
  4.

  	
  Cash Management Agreement (Fourth Mezzanine Loan)

  
	
   

  	
   

  
	
  5.

  	
  Fourth Mezzanine Pledge Agreement

  
	
   

  	
   

  
	
  6.

  	
  Equity Certificate of Third Mezzanine Borrower

  
	
   

  	
   

  
	
  7.

  	
  Acknowledgment and Consent

  
	
   

  	
   

  
	
  8.

  	
  Environmental Indemnity Agreement (Fourth Mezzanine Loan)

  
	
   

  	
   

  
	
  9.

  	
  Collateral Assignment of Interest Rate Cap (Fourth Mezzanine Loan)

  
	
   

  	
   

  
	
  10.

  	
  UCC Policy

  
	
   

  	
   

  
	
  11.

  	
  Escrow Letter

  
	
   

  	
   

  
	
  12.

  	
  Assignment of Title Insurance Policy and Proceeds

  
	
   

  	
   

  
	
  13.

  	
  Cooperation Agreement

  

 

 

EXHIBIT F

 

FIFTH MEZZANINE LOAN DOCUMENTS

 

Dated as of December 21, 2007, unless
otherwise indicated.

 

	
  1.

  	
  Fifth Mezzanine Loan Agreement

  
	
   

  	
   

  
	
  2.

  	
  Fifth Mezzanine Promissory Note

  
	
   

  	
   

  
	
  3.

  	
  Guaranty Agreement (Fifth Mezzanine Loan)

  
	
   

  	
   

  
	
  4.

  	
  Cash Management Agreement (Fifth Mezzanine Loan)

  
	
   

  	
   

  
	
  5.

  	
  Fifth Mezzanine Pledge Agreement

  
	
   

  	
   

  
	
  6.

  	
  Equity Certificate of Fourth Mezzanine Borrower

  
	
   

  	
   

  
	
  7.

  	
  Acknowledgment and Consent

  
	
   

  	
   

  
	
  8.

  	
  Environmental Indemnity Agreement (Fifth Mezzanine Loan)

  
	
   

  	
   

  
	
  9.

  	
  Collateral Assignment of Interest Rate Cap (Fifth Mezzanine Loan)

  
	
   

  	
   

  
	
  10.

  	
  UCC Policy

  
	
   

  	
   

  
	
  11.

  	
  Escrow Letter

  
	
   

  	
   

  
	
  12.

  	
  Assignment of Title Insurance Policy and Proceeds

  
	
   

  	
   

  
	
  13.

  	
  Cooperation Agreement

  

 

 

EXHIBIT G

 

SIXTH MEZZANINE LOAN DOCUMENTS

 

Dated as of December 21, 2007, unless
otherwise indicated.

 

	
  1.

  	
  Sixth Mezzanine Loan Agreement

  
	
   

  	
   

  
	
  2.

  	
  Sixth Mezzanine Promissory Note

  
	
   

  	
   

  
	
  3.

  	
  Guaranty Agreement (Sixth Mezzanine Loan)

  
	
   

  	
   

  
	
  4.

  	
  Cash Management Agreement (Sixth Mezzanine Loan)

  
	
   

  	
   

  
	
  5.

  	
  Sixth Mezzanine Pledge Agreement

  
	
   

  	
   

  
	
  6.

  	
  Equity Certificate of Fifth Mezzanine Borrower

  
	
   

  	
   

  
	
  7.

  	
  Acknowledgment and Consent

  
	
   

  	
   

  
	
  8.

  	
  Environmental Indemnity Agreement (Sixth Mezzanine Loan)

  
	
   

  	
   

  
	
  9.

  	
  Collateral Assignment of Interest Rate Cap Agreement (Sixth Mezzanine
  Loan)

  
	
   

  	
   

  
	
  10.

  	
  UCC Policy

  
	
   

  	
   

  
	
  11.

  	
  Escrow Letter

  
	
   

  	
   

  
	
  12.

  	
  Assignment of Title Policy and Proceeds

  
	
   

  	
   

  
	
  13.

  	
  Cooperation Agreement

  

 

 

EXHIBIT H

 

SEVENTH MEZZANINE LOAN DOCUMENTS

 

Dated as of December 21, 2007, unless
otherwise indicated.

 

	
  1.

  	
  Seventh Mezzanine Loan Agreement

  
	
   

  	
   

  
	
  2.

  	
  Seventh Mezzanine Promissory Note

  
	
   

  	
   

  
	
  3.

  	
  Guaranty Agreement (Seventh Mezzanine Loan)

  
	
   

  	
   

  
	
  4.

  	
  Cash Management Agreement (Seventh Mezzanine Loan)

  
	
   

  	
   

  
	
  5.

  	
  Seventh Mezzanine Pledge Agreement

  
	
   

  	
   

  
	
  6.

  	
  Equity Certificate of Sixth Mezzanine Borrower

  
	
   

  	
   

  
	
  7.

  	
  Acknowledgment and Consent

  
	
   

  	
   

  
	
  8.

  	
  Environmental Indemnity Agreement (Seventh Mezzanine Loan)

  
	
   

  	
   

  
	
  9.

  	
  Collateral Assignment of Interest Rate Cap Agreement (Seventh
  Mezzanine Loan)

  
	
   

  	
   

  
	
  10.

  	
  UCC Policy

  
	
   

  	
   

  
	
  11.

  	
  Escrow Letter

  
	
   

  	
   

  
	
  12.

  	
  Assignment of Title Insurance Policy and Proceeds

  
	
   

  	
   

  
	
  13.

  	
  Cooperation Agreement

  

 

 

EXHIBIT I

 

PERMITTED FUND MANAGERS

 

	
  1.

  	
  DLJ Real Estate Capital Partners

  
	
   

  	
   

  
	
  2.

  	
  iStar Financial Inc.

  
	
   

  	
   

  
	
  3.

  	
  Capital Trust, Inc.

  
	
   

  	
   

  
	
  4.

  	
  Archon Capital, L.P.

  
	
   

  	
   

  
	
  5.

  	
  Whitehall Street Real Estate Fund, L.P.

  
	
   

  	
   

  
	
  6.

  	
  The Blackstone Group International Ltd.

  
	
   

  	
   

  
	
  7.

  	
  Apollo Real Estate Advisors

  
	
   

  	
   

  
	
  8.

  	
  Colony Capital, Inc.

  
	
   

  	
   

  
	
  9.

  	
  Praedium Group

  
	
   

  	
   

  
	
  10.

  	
  J.E. Robert Companies

  
	
   

  	
   

  
	
  11.

  	
  Fortress Investment Group LLC

  
	
   

  	
   

  
	
  12.

  	
  Lone Star Opportunity Fund

  
	
   

  	
   

  
	
  13.

  	
  Clarion Partners

  
	
   

  	
   

  
	
  14.

  	
  Walton Street Capital, LLC

  
	
   

  	
   

  
	
  15.

  	
  Starwood Financial Trust

  
	
   

  	
   

  
	
  16.

  	
  BlackRock, Inc.Exhibit 10.5

 

FORM OF CASH
MANAGEMENT AGREEMENT

(SEVENTH MEZZANINE LOAN)

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Fitch” shall mean
Fitch, Inc.

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Moody’s” shall mean
Moody’s Investors Service, Inc.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

(b)           Federal Housing Administration
debentures;

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Satisfaction Event”
shall mean the satisfaction in full of the Obligations.

 

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

 

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

 

6

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

(a)   Intentionally
Omitted.

 

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

 

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

 

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

 

9

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 5.  Matters Concerning Borrower.

 

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

 

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

 

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

 

10

 

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

 

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

 

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

 

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

 

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

 

11

 

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

 

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

 

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

 

Section 7.  Intentionally Omitted.

 

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

 

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

 

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

 

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

 

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

 

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

 

12

 

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

 

	
  If to Lender:

  	
   

  	
  JPMorgan Chase Bank, N.A.

  c/o Centerline
  Servicing Inc.

  5221 N. O’Connor Blvd.,
  Suite 600

  Irving, Texas 75039

  Attention: John Roach,
  Senior Vice President, Asset Management

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Cadwalader,
  Wickersham & Taft LLP

  One World Financial Center

  New York, New York 10281

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

  
	
   

  	
   

  	
   

  
	
  If to Borrower:

  	
   

  	
  HCR VII
  Properties, LLC

  333 N. Summit Street

  Toledo, Ohio 43604

  Attention: Chief Legal
  Officer

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  HCR VII
  Properties, LLC

  333 N. Summit Street

  Toledo, Ohio 43604

  Attention: Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Latham &
  Watkins LLP

  885 Third Avenue

  New York, New York 10022

  Attention: James I.
  Hisiger, Esq.

  

 

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

 

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

 

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

 

13

 

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

 

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

 

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

 

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

 

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

 

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

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

14

 

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

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  HCR VII
  PROPERTIES, LLC, 

  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

 

	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A.,

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  

 

 

SCHEDULE I

 

SEVENTH MEZZANINE DEPOSIT ACCOUNT

 

	
  Deposit Bank:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Deposit Account:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Account of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Account #

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Reference:

  	
   

  	
  HCR VII Properties, LLC

  

 

1

 

CASH
MANAGEMENT AGREEMENT

(SEVENTH
MEZZANINE LOAN)

 

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

 

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

 

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

 

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

 

 

Column Financial, Inc.
and Bank of America, N.A. made a mezzanine loan to First Mezzanine Borrower in
the aggregate principal amount of $100,000,000.00 (the “First
Mezzanine Loan”);

 

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

 

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

 

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

 

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

 

WHEREAS, pursuant to
that certain Loan Agreement (Sixth Mezzanine Loan), dated as of the date
hereof, by and between JPMorgan Chase Bank, N.A., in its capacity as

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Fitch”
shall mean Fitch, Inc.

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Moody’s”
shall mean Moody’s Investors Service, Inc.

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

“Permitted
Investments” shall mean any one or more of the following
obligations or securities acquired at a purchase price of not greater than par,
including those issued by the Servicer, the trustee under any Securitization or
any of their respective Affiliates (to the extent satisfying the applicable
requirements of this definition), payable on demand or having a scheduled
maturity date not later than the Business Day immediately prior to the first
Payment Date following the date of acquiring such investment (or, if earlier,
the date on which the proceeds of such Permitted Investments are necessary to
fulfill the purposes of the applicable Account), having a scheduled maturity
date not later than 365 days after the date of origination thereof, and meeting
one of the appropriate standards set forth below:

 

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

 

(b)           Federal Housing
Administration debentures; 

 

(c)           obligations of the following
United States government sponsored agencies: Federal Home Loan Mortgage Corp.
(debt obligations), the Farm Credit System (consolidated systemwide bonds and
notes), the Federal Home Loan Banks (consolidated debt obligations), the
Federal National Mortgage Association (debt

 

6

 

obligations),
the Financing Corp. (debt obligations), and the Resolution Funding Corp. (debt
obligations); provided, however, that the
investments described in this clause (c) (A) must have a
predetermined fixed dollar of principal due at maturity that cannot vary or
change, (B) if rated by S&P, must not have an “r” highlighter affixed
to such rating, (C) if such investments have a variable rate of interest,
such interest rate must be tied to a single interest rate index plus a fixed
spread (if any) and must move proportionately with that index, and
(D) such investments must not be subject to liquidation prior to their
maturity;

 

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

 

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

 

(f)            debt obligations with
maturities of not more than 365 days and at all times rated AA-or higher by
S&P and Fitch and Aa 3 by Moody’s (or, if not rated by all Rating Agencies,
by all Rating Agencies by which it is rated); provided,
however, that the investments described in this clause
(f) (A) must have a predetermined fixed dollar of principal due at
maturity that cannot vary or change, (B) if rated by S&P, must not
have an “r” highlighter affixed to such rating, (C) if such investments
have a variable rate of interest, such interest rate must be tied to a single
interest rate index plus a fixed spread (if any) and must move proportionately
with that index, and (D) such investments must not be subject to
liquidation prior to their maturity;

 

(g)           commercial paper (including both
non-interest-bearing discount obligations and interest-bearing obligations
payable on demand or on a specified date not more than one year after the date
of issuance thereof) with maturities of not more than 365 days and that at all
times is rated A-1+ by S&P, F1+ by Fitch and P-1 by Moody’s

 

7

 

(or, if not rated by all
Rating Agencies, by all Rating Agencies by which it is rated); provided, however, that the investments described in this
clause (g) (A) must have a predetermined fixed dollar of principal
due at maturity that cannot vary or change, (B) if rated by S&P, must
not have an “r” highlighter affixed to such rating, (C) if such
investments have a variable rate of interest, such interest rate must be tied
to a single interest rate index plus a fixed spread (if any) and must move
proportionately with that index, and (D) such investments must not be
subject to liquidation prior to their maturity;

 

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

 

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

 

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

 

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

 

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

 

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

 

“Satisfaction
Event” shall mean the satisfaction in full of the Obligations.

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

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

 

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

 

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

 

(ii)           An account or sub-account of
the Seventh Mezzanine Deposit Account into which Borrower shall deposit, or
cause to be deposited, the Monthly Debt Service Payment Amount, which account
shall be entitled “HCR VII Properties, LLC for the benefit of JPMorgan Chase
Bank, N.A., as Lender, pursuant to Loan Agreement dated as of December 21,
2007 – Seventh Mezzanine Debt Service Reserve Sub-account” (the “Seventh Mezzanine Debt Service Sub-account”).

 

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

 

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

 

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

 

(c)           Lender shall have the right
to entitle the Accounts with such other designations as Lender may select in
its reasonable discretion in order to reflect an assignment or transfer of the
Loan effectuated in accordance with the terms of the Loan Agreement. Lender
shall have the right from time to time to change the Eligible Institution with
which the Accounts

 

10

 

are maintained; provided,
however, that Borrower shall have no obligation to make payments to the
Seventh Mezzanine Deposit Account at such new Eligible Institution until Lender
shall have given Borrower at least two (2) days’ notice thereof together
with wiring instructions for such new Seventh Mezzanine Deposit Account. The
Eligible Institution, account number and other information with respect to the
Seventh Mezzanine Deposit Account as of the date hereof is set forth on Schedule
I.

 

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

 

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

 

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

 

(g)           Lender or Servicer may (but
shall not be obligated to) invest amounts deposited in the respective Accounts
in Permitted Investments selected by Lender or Servicer, as applicable.
Borrower may (but shall not be obligated to) direct Lender or Servicer to
invest the amounts deposited in the Low DSCR Interest Floor Reserve Sub-account
and the Low DSCR General Reserve Sub-account in Permitted Investments selected
by Borrower. All such investments shall be subject to and in accordance with
all of the terms and conditions of this Agreement, including, without
limitation, Section 2(e) hereof. Without limiting the
generality of the preceding sentence, all funds in the Accounts that are
invested in Permitted Investments (including such funds as are transferred,
with the prior written consent of Lender, to another Eligible Account
satisfying the requirements of this Agreement (including the preservation of
the security interest granted by Borrower in favor of Lender hereunder)) shall
be deemed to be held

 

11

 

in the respective Accounts
for all purposes of the Loan Agreement and the other Loan Documents. All
earnings on such Permitted Investments shall be for the benefit of and paid to
the Lender; provided, however, that all earnings on any sums in
the Low DSCR Interest Floor Reserve Sub-account and the Low DSCR General
Reserve Sub-account shall be deposited in the Low DSCR Interest Floor Reserve
Sub-account or the Low DSCR General Reserve Sub-account, as applicable, for the
benefit of Borrower. If Lender or Servicer, or Borrower, as applicable, elects
to invest funds in such Accounts in Permitted Investments, then Borrower shall
have liability for any loss in investments of funds that are invested in
Permitted Investments. Borrower shall be responsible for payment of any
federal, state or local income or other tax applicable to the interest or
income earned on the Accounts.

 

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

 

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

 

(a)                   Intentionally
Omitted.

 

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

 

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

 

12

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

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

 

Section 5.               Matters
Concerning Borrower.

 

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

 

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

 

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

 

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

 

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

 

(c)           Borrower hereby grants to
Lender, as additional security for the payment and performance of the
Obligations, a continuing perfected first priority security interest in and to,
and a first lien upon the following (collectively, the “Collateral”):
(A) the Seventh Mezzanine Deposit Account and the Seventh Mezzanine
Sub-accounts and all of Borrower’s right, title and interest in and to all
cash, property or rights transferred to or deposited therein from time to time,
(B) all earnings, investments and securities (including, without
limitation, Permitted Investments) held in the Seventh Mezzanine Deposit
Account and the Seventh Mezzanine Sub-accounts in accordance with this
Agreement and (C) any and all proceeds of the foregoing. This Agreement
and the grant of security interest made hereby shall secure (i) payment of
all amounts payable by Borrower to Lender under the Note and (ii) the
other Obligations. Borrower acknowledges that Servicer is acting as the agent of,
and at the direction

 

14

 

of, Lender in connection
with the subject matter of this Agreement. Borrower further agrees to execute,
acknowledge, deliver, file or do, at its sole cost and expense, all other acts,
assignments, notices, agreements or other instruments as Lender may reasonably
require in order to evidence, effectuate, assure, convey, secure, assign,
transfer and convey unto Lender any of the rights granted pursuant to this
Agreement and to more fully perfect and protect any lien or security interest
granted pursuant to this Agreement.

 

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

 

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

 

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

 

15

 

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

 

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

 

Section 7.               Intentionally
Omitted.

 

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

 

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

 

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

 

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

 

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

 

Section 10.             Notices. All notices,
consents, approvals and requests required or permitted hereunder or under any
other Loan Document shall be given in writing and shall be effective for all
purposes if hand delivered or sent by (a) certified or registered United
States mail, postage prepaid, return receipt requested or (b) expedited
prepaid delivery service, either commercial or United States Postal Service,
with proof of attempted delivery, addressed as follows (or at such other
address and Person as shall be designated from time to time by any party
hereto, as the case may be, in a notice to the other parties hereto in the
manner provided for in this Section 11):

 

	
  If to Lender:

  	
  JPMorgan Chase Bank, N.A.

  
	
   

  	
  c/o Centerline Servicing
  Inc.

  

 

16

 

	
   

  	
   

  	
  5221 N. O’Connor Blvd.,
  Suite 600

  
	
   

  	
   

  	
  Irving, Texas 75039

  
	
   

  	
   

  	
  Attention: John Roach,
  Senior Vice

  
	
   

  	
   

  	
  President, Asset Management

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Cadwalader,
  Wickersham & Taft LLP

  
	
   

  	
   

  	
  One World Financial Center

  
	
   

  	
   

  	
  New York, New York 10281

  
	
   

  	
   

  	
  Attention: Fredric L.
  Altschuler, Esq. and

  
	
   

  	
   

  	
  Steven M.
  Herman, Esq.

  
	
   

  	
   

  	
   

  
	
  If to Borrower:

  	
   

  	
  HCR VII Properties, LLC

  
	
   

  	
   

  	
  333 N Summit Street

  
	
   

  	
   

  	
  Toledo, Ohio 43604

  
	
   

  	
   

  	
  Attention: Chief Legal
  Officer

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  HCR VII Properties, LLC

  
	
   

  	
   

  	
  333 N. Summit Street

  
	
   

  	
   

  	
  Toledo, Ohio 43604

  
	
   

  	
   

  	
  Attention: Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Latham & Watkins
  LLP

  
	
   

  	
   

  	
  885 Third Avenue

  
	
   

  	
   

  	
  New York, New York 10022

  
	
   

  	
   

  	
  Attention: James I.
  Hisiger, Esq.

  

 

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

 

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

 

Section 12.            Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAWS

 

17

 

PRINCIPLES
THEREOF (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE
STATE OF NEW YORK).

 

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

 

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

 

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

 

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

 

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

 

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

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

18

 

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

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  HCR VII PROPERTIES, LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

[SIGNATURES
CONTINUE ON FOLLOWING PAGE]

 

 

	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  a banking association
  chartered under the laws of the

  
	
   

  	
  United States of America

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

SCHEDULE I

 

SEVENTH MEZZANINE DEPOSIT ACCOUNT

 

	
  Deposit Bank:

  	
   

  	
  JPMorgan Chase Bank, N.A.,
  New York, NY

  
	
   

  	
   

  	
   

  
	
  Deposit Account:

  	
   

  	
  ABA# 021-000-021

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  John Roach - (972)
  868-5434

  
	
   

  	
   

  	
   

  
	
  Account of:

  	
   

  	
  Centerline Servicing Inc.
  Client Clearing Account

  
	
   

  	
   

  	
   

  
	
  Account #

  	
   

  	
  08806361448

  
	
   

  	
   

  	
   

  
	
  Reference:

  	
   

  	
  HCR VII Properties, LLC

  

 

1

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