Document:

Exhibit
10.62

COMPLETION GUARANTY

COMPLETION GUARANTY, dated as of November 30, 2006 (as
amended, restated, replaced, supplemented or otherwise modified from time to
time, this “Guaranty”),
by TROPHY HUNTER INVESTMENTS, LTD., a Florida limited partnership (together
with its successors and permitted assigns, “BH I Guarantor”), having an
address at c/o Bay Harbour Management, L.C., 885 Third Avenue, New York, NY
10022  Attn: Douglas Teitelbaum; BAY
HARBOUR 90-1, LTD., a Florida limited partnership (together with its successors
and permitted assigns, “BH II Guarantor”), having an address at c/o Bay
Harbour Management, L.C., 885 Third Avenue, New York, NY 10022  Attn: Douglas Teitelbaum and BAY HARBOUR
MASTER, LTD., a Cayman exempted company (together with its successors and
permitted assigns, “BH III Guarantor”), having an address at c/o Bay
Harbour Management, L.C., 885 Third Avenue, New York, NY 10022  Attn: Douglas Teitelbaum and ROBERT EARL, an
individual (together with his successors and permitted assigns, “RE
Guarantor”, and together with BH Guarantor, BH II Guarantor and BH III
Guarantor individually or collectively as the context indicates, “Guarantor”),
having an address at 9754 Chestnut Ridge Drive, Windermere, Florida 34786, for
the benefit of COLUMN FINANCIAL, INC., a Delaware corporation having an address
at 11 Madison Avenue, 9th Floor, New York, New York 10010 (together with
its successors and assigns, “Lender”).

RECITALS:

WHEREAS,
pursuant to that certain Note, dated as of the date hereof (as the same may be
amended, restated, replaced supplemented or otherwise modified from time to
time, the “Note”), executed by PH Fee Owner LLC, a Delaware limited
liability company (together with its successors and assigns, “Fee Owner”),
and OpBiz, L.L.C., a Nevada limited liability company (together with its
successors and assigns, “OpBiz” and, together with Fee Owner,
individually or collectively as the context indicates, “Borrower”), and
payable to the order of Lender in the original principal amount of up to $820,000,000
or so much thereof as is advanced, Borrower is indebted, and may from time to
time be further indebted, to Lender with respect to a loan (the “Loan”)
made pursuant to that certain Loan Agreement, dated as of the date hereof (as
amended, restated, replaced, supplemented, or otherwise modified from time to
time, the “Loan Agreement”), between Borrower and Lender, which Loan is
secured by, inter alia, that
certain Deed of Trust, Security Agreement, Assignment of Leases and Rents,
Financing Statement and Fixture Filing, dated as of the date hereof, made by
Borrower to First American Title Insurance Company, a New York corporation, as
trustee, for the benefit of Lender, as beneficiary (as amended, restated,
replaced, supplemented, or otherwise modified from time to time, collectively,
the “Security Instrument”), and further evidenced, secured or governed
by other instruments and documents executed in connection with the Loan
(together with the Note, the Loan Agreement and the Security Instrument, collectively,
the “Loan Documents”).

WHEREAS, Lender is not
willing to make the Loan, or otherwise extend credit, to Borrower unless
Guarantor unconditionally guarantees payment and performance to Lender of the
Guaranteed Obligations (as hereinafter defined).

WHEREAS, Guarantor is the
owner of a direct or indirect interest in Borrower, and Guarantor will directly
benefit from Lender’s making the Loan to Borrower.

NOW, THEREFORE, as an
inducement to Lender to make the Loan to Borrower and to extend such additional
credit as Lender may from time to time agree to extend under the Loan Documents
(as defined in the Loan Agreement), and for other good and valuable
consideration, the receipt and legal sufficiency of which are hereby
acknowledged, the parties do hereby agree as follows:

ARTICLE
I

NATURE AND SCOPE OF GUARANTY

1.1.          Definitions.  Unless otherwise specifically provided,
capitalized terms used and not otherwise defined herein shall have the meaning
set forth in the Loan Agreement.  For the
purposes hereof, the following terms shall have the respective meanings set
forth below:

“Capital Stock”
means, relative to any Person, any and all shares, interests, participations or
other equivalents (however designated, whether voting or non-voting) of such
Person’s capital, whether now outstanding or issued after the Closing Date.

“Cost Overruns” means collectively, all hard costs, soft costs
and other obligations, liabilities, amounts, costs and expenses arising or
incurred in connection with the completion of the Renovation Project (whether
or not set forth in the Project Budget) in excess of the amount of any Line
Items set forth in the Project Budget or otherwise not specifically provided
for in the Project Budget, including, without limitation, interest that accrues
on any cost following the Substantial Completion of the Renovation Project.

“Enforcement Costs” means all costs, expenses, liabilities,
claims and amounts required to be paid by Guarantor pursuant to Section 1.9
or any other provision hereof.

 “Guaranteed Obligations”
means, collectively, all obligations and liabilities of Borrower under the Loan
Agreement or any of the other Loan Documents to:

(a)           cause
Final Completion of the Renovation Project to occur in a timely manner, in
accordance with the provisions of the Loan Agreement;

(b)           pay
all Project Costs with respect to the Renovation Project, including (without
limitation) any and all obligations, liabilities, costs and expenses incurred
in connection with the completion of the Renovation Project;

(c)           keep
the Renovation Project and the Property free and clear of all liens or claims
of liens arising or incurred in connection with the completion of the
Renovation Project, other than Permitted Encumbrances;

(d)           correct
or cause to be corrected any defect in the Renovation Project Improvements or
any material departure from the Plans and Specifications in accordance with Section
3.3.5 of the Loan Agreement; and

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(e)           pay
any and all Enforcement Costs.

“Net Worth” shall mean, with respect to Guarantor for any
period, assets less liabilities of Guarantor and its Subsidiaries determined on
a consolidated basis in accordance with accounting principles reasonably
acceptable to Lender and consistent with the accounting principles used to
generate the financial information delivered to Lender in connection with its
underwriting of the Loan, consistently applied.

“Required Net Worth” shall have the meaning ascribed thereto in Section
4.10 hereof.

“Subsidiaries” means, relative to any Person, any corporation,
partnership or other business entity of which more than 50% of the outstanding
Capital Stock having ordinary voting power to elect the board of directors,
managers or other voting members of the governing body of such Person
(irrespective of whether at the time Capital Stock (or other ownership
interest) of any other class or classes of such Person shall or might have
voting power upon the occurrence of any contingency) is at the time directly or
indirectly owned by such Person, by such Person and one or more other
Subsidiaries of such Person, or by one or more other Subsidiaries of such
Person.

1.2.          Guaranteed
Obligations.  Subject to Section
1.2(b), Guarantor hereby irrevocably, absolutely and unconditionally
guarantees to Lender (including, without limitation its respective successors
and assigns) the payment and performance of the Guaranteed Obligations as and
when the same shall be due and payable or otherwise.  Guarantor hereby irrevocably and
unconditionally covenants and agrees that it is liable for the Guaranteed
Obligations as a primary obligor and not merely as a surety.

(b)           Notwithstanding anything contained
herein to the contrary, the maximum aggregate liability of Guarantor hereunder
(excluding Enforcement Costs with respect to which there shall be no limit
hereunder), shall not exceed the greater of (i) thirty-five million dollars
($35,000,000), and (b) in the event that Cost Overruns exceed at any time
fifteen million dollars ($15,000,000) in the aggregate, an amount equal to
twenty-four percent (24%) of the aggregate amount of all paid or unpaid Project
Costs as set forth in the Project Budget for the Renovation Project as approved
by Lender from time to time in accordance with the terms of the Loan Agreement.

(c)   Notwithstanding
anything to the contrary, if at any time Guarantors are comprised of more than
one Person, the obligations and liabilities of each such Person under this
Guaranty shall be joint and several.

1.3.          Nature of
Guaranty.  This Guaranty is an
irrevocable, unconditional, absolute, continuing guaranty of payment and
performance and not a guaranty of collection. 
This Guaranty may not be revoked by Guarantor and shall continue to be
effective with respect to any Guaranteed Obligations arising or created after
any attempted revocation by Guarantor and after (if Guarantor is a natural
person) Guarantor’s death (in which event this Guaranty shall be binding upon
Guarantor’s estate and Guarantor’s legal representatives and heirs).  The fact that at any time or from time to
time the Guaranteed Obligations may be increased or reduced shall not release
or discharge the obligation of Guarantor to Lender with respect to the
Guaranteed

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Obligations. 
This Guaranty may be enforced by Lender and any subsequent holder of the
Note and shall not be discharged by the assignment or negotiation of all or
part of the Note.

1.4.          Guaranteed
Obligations Not Reduced by Offset. 
The Guaranteed Obligations and the liabilities and obligations of
Guarantor to Lender hereunder shall not be reduced, discharged or released
because or by reason of any existing or future offset, claim or defense (other
than payment in full) of Borrower or any other party against Lender or against
payment of the Guaranteed Obligations, whether such offset, claim or defense
arises in connection with the Guaranteed Obligations (or the transactions
creating the Guaranteed Obligations) or otherwise.

1.5.          Lender’s
Right to Perform.  In the event that
Guarantor shall fail or refuse to observe, perform and satisfy all of Borrower’s
obligations, duties, covenants and agreements under the Loan Agreement, the
other Loan Documents and the Project Documents with respect to Final Completion
of the Renovation Project (or fail or refuse to cause Borrower to so observe,
perform and satisfy) or shall otherwise fail or refuse to pay or perform any of
the Guaranteed Obligations, in each case fully, completely and punctually,
Lender may, from and after the occurrence of an Event of Default and during the
continued existence thereof at its option, observe, perform and/or satisfy any
of such obligations, duties, covenants and agreements (or cause any of such
obligations to be so observed, performed and/or satisfied) or otherwise pay or
perform or cause the payment and performance of any of the Guaranteed Obligations
and in connection therewith, take possession of the Project and cause Final
Completion of the Renovation Project, in which case Guarantor, upon demand by
Lender, shall (x) pay any and all costs, expenses, liabilities and claims with
respect thereto, (y) cause any claim or Lien in connection therewith to be
bonded, discharged, released or paid and (z) reimburse Lender in lawful money
of the United States for all sums paid and all costs, expenses or liabilities
incurred by Lender in connection therewith (which payments shall be included
within the meaning of Guaranteed Obligations hereunder).

1.6.          Payment
by Guarantor.  If all or any part of
the Guaranteed Obligations shall not be punctually paid and performed when due,
Guarantor shall, immediately upon demand by Lender and without presentment,
protest, notice of protest, notice of non-payment or any other notice
whatsoever, pay in lawful money of the United States of America the amount due
on the Guaranteed Obligations 
(including, without limitation, any amounts due pursuant to Section
1.5 hereof) to Lender at Lender’s address as set forth herein.  Such demand(s) may be made at any time
coincident after the time for payment and performance of all or part of the
Guaranteed Obligations and may be made from time to time with respect to the
same or different items of Guaranteed Obligations.  Such demand shall be made, given and received
in accordance with the notice provisions hereof.  If the amount due on the Guaranteed
Obligations (including, without limitation, any amounts due pursuant to Section
1.5 hereof) is not paid to Lender within ten (10) Business Days after
demand by Lender, the same shall bear interest at the Default Rate from the
date of demand until the date all of the Guaranteed Obligations (including,
without limitation, any amounts due pursuant to Section 1.5 hereof) have
been paid (which interest shall be included within the meaning of Guaranteed
Obligations).

1.7.          No Duty to Pursue
Others.  It shall not be necessary
for Lender (and Guarantor hereby waives any rights which Guarantor may have to
require Lender), in order to enforce the 

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obligations of Guarantor hereunder, first to
(i) institute suit or exhaust its remedies against Borrower or others
liable on the Loan or the Guaranteed Obligations or any other person,
(ii) enforce Lender’s rights against any collateral which shall ever have
been given to secure the Loan, (iii) enforce Lender’s rights against any
other guarantors of the Guaranteed Obligations, (iv) join Borrower or any
others liable on the Guaranteed Obligations in any action seeking to enforce
this Guaranty, (v) exhaust any remedies available to Lender against any
collateral which shall ever have been given to secure the Loan, or
(vi) resort to any other means of obtaining payment of the Guaranteed
Obligations.

1.8.          Waivers.  Guarantor agrees to the provisions of this
Guaranty and hereby waives notice of (i) any loans or advances made by
Lender to Borrower, (ii) acceptance of this Guaranty, (iii) any
amendment or extension of the Note, the Mortgage and any other security
instrument, the Loan Agreement or of any other Loan Documents, (iv) the
execution and delivery by Borrower and Lender of any other loan or credit
agreement or of Borrower’s execution and delivery of any promissory notes or
other documents arising under the Loan Documents or in connection with the
Property, (v) the occurrence of any breach by Borrower or an Event of
Default, (vi) Lender’s transfer or disposition of the Guaranteed
Obligations, or any part thereof, (vii) sale or foreclosure (or posting or
advertising for sale or foreclosure) of any collateral for the Guaranteed
Obligations, (viii) protest, proof of non-payment or default by Borrower,
and (ix)  generally, all demands and notices of every kind in connection with
this Guaranty, the Loan Documents, any documents or agreements evidencing,
securing or relating to any of the Guaranteed Obligations and the obligations
hereby guaranteed.

1.9.          Payment of
Expenses.  In the event that
Guarantor should breach or fail to timely perform any provisions of this
Guaranty, Guarantor shall, immediately upon demand by Lender, pay Lender all
costs and expenses (including court costs and reasonable attorneys’ fees)
incurred by Lender in the enforcement hereof or the preservation of Lender’s
rights hereunder.  If the amount due is
not paid to Lender as aforesaid within ten (10) Business Days after written
demand by Lender, the same shall bear interest at the Default Rate from the
date of demand until the date such amounts due hereunder have been paid in full
(which interest shall be included within the meaning of Guaranteed
Obligations).

1.10.        Effect of
Bankruptcy.  In the event that
pursuant to any insolvency, bankruptcy, reorganization, receivership or other
debtor relief law or any judgment, order or decision thereunder, Lender must
rescind or restore any payment or any part thereof received by Lender in
satisfaction of the Guaranteed Obligations, as set forth herein, any prior
release or discharge from the terms of this Guaranty given to Guarantor by
Lender shall be without effect and this Guaranty shall remain in full force and
effect.  It is the intention of Borrower
and Guarantor that Guarantor’s obligations hereunder shall not be discharged
except by Guarantor’s performance of such obligations and then only to the
extent of such performance.

1.11.        Waiver of
Subrogation, Reimbursement and Contribution. Notwithstanding anything to
the contrary contained in this Guaranty, until the Loan is paid in full,
Guarantor hereby unconditionally and irrevocably waives, releases and abrogates
any and all rights it may now or hereafter have under any agreement, at law or
in equity (including, without limitation, any law subrogating Guarantor to the
rights of Lender), to assert any claim against or seek 

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contribution, indemnification or any other form of
reimbursement from Borrower or any other party liable for payment of any or all
of the Guaranteed Obligations for any payment made by Guarantor under or in
connection with this Guaranty.  Nothing
herein prohibits payment of the Guarantee Fee as and when Borrower is permitted
to do so under the Loan Agreement and the Guarantee Fee Agreement.

ARTICLE
II

EVENTS AND CIRCUMSTANCES NOT REDUCING

OR DISCHARGING GUARANTOR’S OBLIGATIONS

Guarantor hereby consents and agrees to each of the following and
agrees that Guarantor’s obligations under this Guaranty shall not be released,
diminished, impaired, reduced or adversely affected by any of the following and
waives any common law, equitable, statutory or other rights (including without
limitation rights to notice) which Guarantor might otherwise have as a result
of or in connection with any of the following:

2.1.          Modifications.  Any renewal, extension, increase,
modification, alteration or rearrangement of all or any part of the Guaranteed
Obligations, the Note, the Mortgage and any other security instruments, the
Loan Agreement, the other Loan Documents or any other document, instrument,
contract or understanding between Borrower and Lender pertaining to the Guaranteed
Obligations or any failure of Lender to notify Guarantor of any such action.

2.2.          Adjustment.  Any adjustment, indulgence, forbearance or
compromise that might be granted or given by Lender to Borrower or Guarantor or
any other party liable for payment of any or all of the Guaranteed Obligations.

2.3.          Condition of
Borrower or Guarantor. The insolvency, bankruptcy, arrangement, adjustment,
composition, liquidation, disability, dissolution or lack of power of Borrower,
Guarantor; or any dissolution of Borrower or Guarantor or any sale, lease or
transfer of any or all of the assets of Borrower or Guarantor or any changes in
the direct or indirect shareholders, partners or members of Borrower or
Guarantor or any other party liable for payment of any or all of the Guaranteed
Obligations; or any reorganization of Borrower or Guarantor.

2.4.          Invalidity of
Guaranteed Obligations.  The
invalidity, illegality or unenforceability of all or any part of the Guaranteed
Obligations or any document or agreement executed in connection with the
Guaranteed Obligations for any reason whatsoever, including without limitation
the fact that (i) the Guaranteed Obligations or any part thereof exceeds
the amount permitted by law, (ii) the act of creating the Guaranteed
Obligations or any part thereof is ultra  vires, (iii) the
officers or representatives executing the Note, the Mortgage and any other
security instruments, the Loan Agreement or the other Loan Documents or
otherwise creating the Guaranteed Obligations acted in excess of their
authority, (iv) the Guaranteed Obligations violate applicable usury laws,
(v) the Borrower has valid defenses, claims or offsets (whether at law, in
equity or by agreement) which render the Guaranteed Obligations wholly or
partially uncollectible from Borrower, (vi) the creation, performance or
repayment of the Guaranteed Obligations (or the execution, delivery and
performance of any document or instrument representing part of the Guaranteed
Obligations or executed in connection with the Guaranteed 

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Obligations or given to secure the repayment of the
Guaranteed Obligations) is illegal, uncollectible or unenforceable, or
(vii) the Note, the Mortgage and any other security instruments, the Loan
Agreement or any of the other Loan Documents have been forged or otherwise are
irregular or not genuine or authentic, it being agreed that Guarantor shall
remain liable hereon regardless of whether Borrower or any other Person be
found not liable on the Guaranteed Obligations or any part thereof for any reason.

2.5.          Release of
Obligors.  Any full or partial
release of the liability of Borrower on the Guaranteed Obligations or any part
thereof, or of any co-guarantors, or any other Person now or hereafter liable,
whether directly or indirectly, jointly, severally, or jointly and severally,
to pay, perform, guarantee or assure the payment of the Guaranteed Obligations,
or any part thereof, it being recognized, acknowledged and agreed by Guarantor
that Guarantor may be required to pay the Guaranteed Obligations in full
without assistance or support of any other party, and Guarantor has not been
induced to enter into this Guaranty on the basis of a contemplation, belief,
understanding or agreement that any other Person will be liable to pay or
perform the Guaranteed Obligations, or that Lender will look to other Person to
pay or perform the Guaranteed Obligations.

2.6.          Other Collateral.  The taking or accepting of any other
security, collateral or guaranty, or other assurance of payment, for all or any
part of the Guaranteed Obligations.

2.7.          Release of
Collateral.  Any release, surrender,
exchange, subordination, deterioration, waste, loss or impairment of any
collateral, property or security at any time existing in connection with, or
assuring or securing payment of, all or any part of the Guaranteed Obligations.

2.8.          Care and
Diligence.  The failure of Lender or
any other party to exercise diligence or reasonable care in the preservation,
protection, enforcement, sale or other handling or treatment of all or any part
of any collateral, property or security, including but not limited to any
neglect, delay, omission, failure or refusal of Lender (except to the extent of
Lender’s gross negligence or willful misconduct) (i) to take or prosecute
any action for the collection of any of the Guaranteed Obligations or
(ii) to foreclose, or initiate any action to foreclose, or, once
commenced, prosecute to completion any action to foreclose upon any security
therefor, or (iii) to take or prosecute any action in connection with any
instrument or agreement evidencing or securing all or any part of the
Guaranteed Obligations.

2.9.          Unenforceability.  The fact that any collateral, security,
security interest or lien contemplated or intended to be given, created or
granted as security for the repayment of the Guaranteed Obligations, or any
part thereof, shall not be properly perfected or created, or shall prove to be
unenforceable or subordinate to any other security interest or lien, it being
recognized and agreed by Guarantor that Guarantor is not entering into this
Guaranty in reliance on, or in contemplation of the benefits of, the validity,
enforceability, collectability or value of any of the collateral for the
Guaranteed Obligations.

2.10.        Offset.  The fact that the Note, the Guaranteed
Obligations and the liabilities and obligations of Guarantor to Lender
hereunder shall not be reduced, discharged or released because of or by reason
of any existing or future right of offset, claim or defense (other than the 

 7
 

defense of payment in full) of Borrower against
Lender, or any other Person, or against payment of the Guaranteed Obligations,
whether such right of offset, claim or defense arises in connection with the
Guaranteed Obligations (or the transactions creating the Guaranteed Obligations)
or otherwise.

2.11.        Merger.  The reorganization, merger or consolidation
of Borrower into or with any other Person.

2.12.        Preference.  Any payment by Borrower to Lender is held to
constitute a preference under bankruptcy laws or for any reason Lender is
required to refund such payment or pay such amount to Borrower or someone else.

2.13.        Other Actions
Taken or Omitted.  Any other action
taken or omitted to be taken with respect to the Loan Documents, the Guaranteed
Obligations, or the security and collateral therefor, whether or not such
action or omission prejudices Guarantor or increases the likelihood that
Guarantor will be required to pay the Guaranteed Obligations pursuant to the
terms hereof, it is the unambiguous and unequivocal intention of Guarantor that
Guarantor shall be obligated to pay the Guaranteed Obligations when due,
notwithstanding any occurrence, circumstance, event, action, or omission
whatsoever, whether contemplated or uncontemplated, and whether or not
otherwise or particularly described herein, which obligation shall be deemed
satisfied only upon the full and final payment and satisfaction of the
Guaranteed Obligations.

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

To induce Lender to enter into the Loan Agreement and the other Loan
and extend credit to Borrower, each Guarantor represents and warrants to Lender
as follows:

3.1.          Benefit.  Guarantor is the owner of a direct or
indirect interest in Borrower, and has received, or will receive, benefit from
the Lender’s making the Loan to Borrower.

3.2.          Familiarity and
Reliance.  Guarantor is familiar with
the financial condition of the Borrower and is familiar with the value of any
and all collateral intended to be created as security for the payment of the
Note or Guaranteed Obligations; however, Guarantor is not relying on such
financial condition or the collateral as an inducement to enter into this
Guaranty.

3.3.          No Representation
by Lender.  Neither Lender nor any
other party has made any representation, warranty or statement to Guarantor in
order to induce Guarantor to execute this Guaranty.

3.4.          Authority.  BH
I Guarantor is a limited partnership organized under the laws of the State of
Florida.  BH II Guarantor is a limited
partnership organized under the laws of the State of Florida.  BH III Guarantor is a company organized under
the laws of the Cayman Islands. Guarantor has the power, authority and legal
right (A) to own and operate its properties and assets, (B) to carry on the
business now being conducted and proposed to be conducted by it, (C) to
execute, deliver and perform its obligations under the Loan Documents to which
it is a party (including, without limitation, this Guaranty) and (D) to engage
in the transactions contemplated 

 8
 

by the Loan Documents to
which it is a party (including, without limitation, this Guaranty).  All Loan Documents to which Guarantor is a
party (including, without limitation, this Guaranty) have been duly authorized,
executed and delivered on behalf of Guarantor. 
Guarantor possesses all material rights, licenses, permits, consents and
authorizations, governmental or otherwise, necessary to entitle it to transact
the businesses in which it is now engaged and to execute, deliver, perform, and
comply with this Guaranty, and consummate the transactions contemplated hereby.

3.5.          Legality.  To Guarantor’s knowledge, the execution,
delivery and performance by Guarantor of this Guaranty and the consummation of
the transactions contemplated hereunder do not and will not contravene or
conflict with any law, statute or regulation whatsoever to which Guarantor is
subject or constitute a default (or an event which with notice or lapse of time
or both would constitute a default) under, or result in the breach of, any
mortgage, charge, lien, or any contract, agreement or other instrument to which
Guarantor is a party.  This Guaranty is
Guarantor’s legal and binding obligation and is enforceable in accordance with
its terms, except as limited by bankruptcy, insolvency or other laws of general
application relating to the enforcement of creditors’ rights.

3.6           Litigation.

There is no action, suit, proceeding or investigation pending or, to
Guarantor’s knowledge, threatened against Guarantor in any court or by or
before any other Governmental Authority, or labor controversy affecting
Guarantor or any of Guarantor’s properties, businesses, assets or revenues,
which would reasonably be expected to materially and adversely affect the
performance of Guarantor’s Obligations and duties under this Guaranty or impair
Guarantor’s ability to fully fulfill and perform Guarantor’s obligations under
this Guaranty and the other Loan Documents to which Guarantor is a party.

3.7.          Financial
and other Information. To Guarantor’s knowledge, all financial data and
other financial information that has been delivered to Lender with respect to
the Guarantor (i) are true, complete and correct in all material respects,
(ii) accurately represent the financial condition of the Guarantor as of
the date of such reports, and (iii) to the extent prepared or audited by
an independent certified public accounting firm, have been prepared in
accordance with GAAP throughout the periods covered, except as disclosed
therein.  To Guarantor’s knowledge,
Guarantor does not have any material contingent liabilities, liabilities for
taxes, unusual forward or long-term commitments or unrealized or
anticipated losses from any unfavorable commitments that are known to Guarantor
and reasonably likely to have a Material Adverse Effect, except as referred to
or reflected in said financial statements. 
Since the date of such financial statements, there has been no material
adverse change in the financial condition, operation or business of Guarantor
from that set forth in said financial statements.

3.8.          Tax
Filings.  Guarantor has filed (or has
obtained effective extensions for filing) all federal, state and local tax
returns required to be filed by it and has paid or made adequate provision for
the payment of all federal, state and local taxes, charges and assessments payable
by Guarantor.  Guarantor believes its tax
returns properly reflect Guarantor’s income and taxes for the periods covered
thereby, subject only to reasonable adjustments required by the Internal
Revenue Service or other applicable tax authority upon audit.

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3.9.          Offset.
The Loan Documents are not subject to any right of rescission, set-off,
counterclaim or defense by Guarantor, including the defense of usury, nor would
the operation of any of the terms of the Loan Documents, or the exercise of any
right thereunder, render the Loan Documents unenforceable (subject to
principles of equity and bankruptcy, insolvency and other laws generally
affecting creditors’ rights and the enforcement of debtors’ obligations), and
Guarantor has not asserted any right of rescission, set-off, counterclaim
or defense with respect thereto.

3.10.        Embargoed
Person.  At all times throughout the
term of the Loan, including after giving effect to any Transfer permitted
pursuant to the Loan Documents, (a) none of the funds or other assets of
Guarantor constitute property of, or are beneficially owned, directly or
indirectly, by any person, entity or government subject to trade restrictions
under U.S. law, including, but not limited to, the International Emergency
Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy
Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations
promulgated thereunder with the result that the investment in Guarantor
(whether directly or indirectly), is prohibited by law or the Loan made by
Lender is in violation of law (“Embargoed Person”); (b) no
Embargoed Person has any interest of any nature whatsoever in Guarantor, with
the result that the investment in Guarantor, as applicable (whether directly or
indirectly), is prohibited by law or the Loan is in violation of law; and
(c) none of the funds of Guarantor have been derived from any unlawful
activity with the result that the investment in Guarantor (whether directly or
indirectly) is prohibited by law or the Loan is in violation of law.

3.11.        Survival.  All representations and warranties made by
Guarantor herein shall survive the execution hereof.

ARTICLE
IV

COVENANTS

4.1.          Corporate
Existence. BH I Guarantor shall maintain and preserve such BH Guarantor’s
corporate existence and qualification as a limited partnership organized under
the laws of the State of Florida.  BH II
Guarantor shall maintain and preserve such BH Guarantor’s corporate existence
and qualification as a limited partnserhip organized under the laws of the
State of Florida.  BH III Guarantor shall
maintain and preserve such BH Guarantor’s corporate existence and qualification
as a company organized under the laws of the Cayman Islands.

4.2.          Financial
Reporting.  The terms and conditions
of this Section 4.2 shall not apply to RE Guarantor.

(a) Each Guarantor shall keep and maintain or will cause to be
kept and maintained proper and accurate books and records, in accordance with
the accounting principles used to generate the financial information delivered
to Lender in connection with its underwriting of the Loan, consistently
applied, reflecting the financial affairs of such Guarantor.  Lender shall have the right from time to time
during normal business hours upon reasonable notice to such Guarantor to
examine such books and records at the office of such Guarantor or other Person
maintaining such books and records and to make such copies or extracts thereof
as Lender shall desire.

 10
 

(b)   As
soon as available and in any event within 120 days after the end of each Fiscal
Year of each Guarantor, such Guarantor shall deliver a copy of the annual audit
report for such Fiscal Year for such Guarantor and its subsidiaries, including
therein a consolidated balance sheet of such Guarantor and its subsidiaries as
of the end of such Fiscal Year and consolidated statements of earnings and cash
flow of such Guarantor and its subsidiaries for such Fiscal Year, in each case,
certified (without any Impermissible Qualification) by Grant Thorton or another
independent public accountant regularly used by such Guarantor, together with a
certificate from such accountants containing a computation of, and showing
compliance with, the financial covenant contained in Section 4.7.  “Impermissible Qualification” means,
relative to the opinion or certification of any independent public accountant
as to any financial statement of any person or entity, any qualification or
exception to such opinion or certification (i) which is of a “going concern” or
similar nature, (ii) which relates to the limited scope of examination of
matters relevant to such financial statement, or (iii) which relates to the
treatment or classification of any item in such financial statement and which,
as a condition to its removal, would require an adjustment to such item the effect
of which would be to cause such person or entity to be in default of any of its
obligations under this Guaranty.  “Fiscal
Year” means any period of twelve consecutive calendar months ending on
December 31.

(c)   Each Guarantor shall deliver such other information
respecting the condition or operations, financial or otherwise, of such
Guarantor or any of its subsidiaries as Lender may from time to time reasonably
request in writing, but in no event more than twice during any calendar year.

(d)   Each
Guarantor acknowledges the importance to Lender of the timely delivery of each
of the items required by this Section 4.4 (collectively, the “Required Financial Items”).  In the event such Guarantor fails to deliver
to Lender any of the Required Financial Items within forty-five (45) days
after written demand therefor from Lender, the same shall constitute an Event
of Default under the Loan Agreement and Lender shall be entitled to the
exercise of all of its rights and remedies provided hereunder.

4.3           Dissolution.  No Guarantor shall liquidate, wind-up or
dissolve (or suffer any liquidation or dissolution).

4.4           Litigation.  Each Guarantor shall give prompt notice to
Lender of any litigation or governmental proceedings pending or threatened
against such Guarantor of which such Guarantor has notice and which would
reasonably be expected to materially adversely affect such Guarantor’s ability
to perform its obligations hereunder.

4.5           Notice of Default.  Each Guarantor shall promptly advise Lender
of any material adverse change in such Guarantor’s condition, financial or
otherwise, or which such Guarantor has knowledge and which would reasonably be
expected to materially adversely affect Guarantor’s ability to perform its
obligations hereunder.

4.6           Certification.
Each Guarantor at any time and from time to time, within 10 Business Days
following the request by Lender, shall execute and deliver to Lender a
statement certifying that this Guaranty is unmodified and in full force and
effect (or if modified, that the 

 11
 

same is in
full force and effect as modified and stating such modifications) or, if
applicable, that this Guaranty is no longer in full force and effect.

4.7           Net Worth.  (a) Each BH Guarantor covenants and agrees
with Lender that, until the Loan has been indefeasibly paid and performed in
full, such BH Guarantor at all times after the date hereof will not permit its
Net Worth as of the last day of any Fiscal Quarter to be less than $17,500,000.
“Net Worth” means, at any time, the excess of the total assets of any Guarantor
and its subsidiaries at such time, over the total liabilities of such Guarantor
and its subsidiaries at such time, in each case, as determined on a
consolidated basis in accordance with Generally Accepted Accounting Principles
(“GAAP”).

ARTICLE
V

SUBORDINATION OF CERTAIN INDEBTEDNESS

5.1.          Subordination of
Guarantor Claims.  As used herein,
the term “Guarantor Claims” shall mean all debts and liabilities of
Borrower to Guarantor, whether such debts and liabilities now exist or are
hereafter incurred or arise, or whether the obligations of Borrower thereon be
direct, contingent, primary, secondary, several, joint and several, or
otherwise, and irrespective of whether such debts or liabilities be evidenced
by note, contract, open account, or otherwise, and irrespective of the Person
in whose favor such debts or liabilities may, at their inception, have been, or
may hereafter be created, or the manner in which they have been or may
hereafter be acquired by Guarantor.  The
Guarantor Claims shall include without limitation all rights and claims of
Guarantor against Borrower (arising as a result of subrogation or otherwise) as
a result of Guarantor’s payment of all or a portion of the Guaranteed
Obligations.  After the occurrence of and
during the continuance of an Event of Default, Guarantor shall not receive or
collect, directly or indirectly, from Borrower or any other party any amount
upon the Guarantor Claims until payment in full of the Debt.

5.2.          Claims in
Bankruptcy.  In the event of any
receivership, bankruptcy, reorganization, arrangement, debtor’s relief, or
other insolvency proceedings involving Guarantor as debtor, Lender shall have
the right to prove its claim in any such proceeding so as to establish its
rights hereunder and receive directly from the receiver, trustee or other court
custodian dividends and payments which would otherwise be payable upon
Guarantor Claims.  Guarantor hereby
assigns such dividends and payments to Lender. 
Should Lender receive, for application against the Guaranteed Obligations,
any dividend or payment which is otherwise payable to Guarantor and which, as
between Borrower and Guarantor, shall constitute a credit against the Guarantor
Claims, then, upon payment to Lender in full and performance of the Guaranteed
Obligations and the repayment of the Loan, Guarantor shall become subrogated to
the rights of Lender to the extent of such payments to Lender on the Guarantor
Claims, and such subrogation shall be with respect to that proportion of the
Guaranteed Obligations which would have been unpaid if Lender had not received
dividends or payments upon the Guarantor Claims.

5.3.          Payments Held in
Trust.  In the event that,
notwithstanding anything to the contrary in this Guaranty, Guarantor should
receive any funds, payment, claim or distribution which is prohibited by this
Guaranty, Guarantor agrees to hold in trust for Lender an amount 

 12
 

equal to the amount of all funds, payments, claims or
distributions so received, and agrees that it shall have absolutely no dominion
over the amount of such funds, payments, claims or distributions so received
except to pay them promptly to Lender, and Guarantor covenants promptly to pay
the same to Lender for application to the Debt.

5.4.          Liens Subordinate.  Guarantor agrees that any liens, security
interests, judgment liens, charges or other encumbrances upon Borrower’s assets
securing payment of the Guarantor Claims shall be and remain inferior and
subordinate to any liens, security interests, judgment liens, charges or other
encumbrances upon Borrower’s assets securing payment of the Debt, regardless of
whether such encumbrances in favor of Guarantor or Lender presently exist or
are hereafter created or attach.  Without
the prior written consent of Lender, Guarantor shall not (i) exercise or
enforce any creditor’s right it may have against Borrower, or
(ii) foreclose, repossess, sequester or otherwise take steps or institute
any action or proceedings (judicial or otherwise, including without limitation
the commencement of, or joinder in, any liquidation, bankruptcy, rearrangement,
debtor’s relief or insolvency proceeding) to enforce any liens, mortgages,
deeds of trust, security interests, collateral rights, judgments or other
encumbrances on assets of Borrower held by Guarantor.

ARTICLE
VI

MISCELLANEOUS

6.1.          Waiver.  No failure to exercise, and no delay in
exercising, on the part of Lender, any right hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right.  The rights of Lender hereunder shall be in
addition to all other rights provided by law. 
No modification or waiver of any provision of this Guaranty, nor consent
to departure therefrom, shall be effective unless in writing and no such
consent or waiver shall extend beyond the particular case and purpose
involved.  No notice or demand given in
any case shall constitute a waiver of the right to take other action in the
same, similar or other instances without such notice or demand.  Pursuant to Nevada Revised Statutes (“NRS”)
Section 40.495(2), Guarantor hereby waives the provisions of NRS Section
40.430.

6.2.          Notices.  All notices, consents, approvals and requests
required or permitted hereunder shall be given in writing and shall be
effective for all purposes if (i) hand delivered, (ii) sent by certified or
registered United States mail, postage prepaid, return receipt requested, (iii)
sent by expedited prepaid delivery service, either commercial or United States
Postal Service, with proof of attempted delivery, or (iv) sent by facsimile
(with answer back acknowledged), in each case 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 6.2):

	
  If to Lender:

  	
  Column Financial, Inc.

  
	
   

  	
  11 Madison Avenue, 9th Floor

  
	
   

  	
  New York, New York 10010

  
	
   

  	
  Attention: Michael May

  
	
   

  	
  Facsimile No.: (212) 352-8106

  

 13
 

 

	
  with a copy to:

  	
  Column Financial, Inc.

  
	
   

  	
  One Madison Avenue

  
	
   

  	
  New York, New York 10010

  
	
   

  	
  Legal and Compliance Department

  
	
   

  	
  Attention: Casey McCutcheon, Esq.

  
	
   

  	
  Facsimile No.: (917) 326-8433

  
	
   

  	
   

  
	
  and a copy to:

  	
  Fried, Frank, Harris, Shriver & Jacobson LLP

  
	
   

  	
  One New York Plaza

  
	
   

  	
  New York, New York 10004

  
	
   

  	
  Attention: Jonathan L. Mechanic, Esq.

  
	
   

  	
  Facsimile No.: (212) 859-4000

  
	
   

  	
   

  
	
  If to BH I Guarantor:

  	
  c/o Bay Harbour Management, L.C.,

  
	
   

  	
  885 Third Avenue

  
	
   

  	
  New York, NY 10022

  
	
   

  	
  Attn: Douglas Teitelbaum

  
	
   

  	
  Facsimile: 212-371-7497

  
	
   

  	
   

  
	
  with a copy to:

  	
  Proskauer Rose LLP

  
	
   

  	
  1585 Broadway

  
	
   

  	
  New York, NY 10036

  
	
   

  	
  Attn: Christopher Wells, Esq.

  
	
   

  	
  Facsimile: 212-969-2900

  
	
   

  	
   

  
	
  If to BH II Guarantor:

  	
  c/o Bay Harbour Management, L.C.,

  
	
   

  	
  885 Third Avenue

  
	
   

  	
  New York, NY 10022

  
	
   

  	
  Attn: Douglas Teitelbaum

  
	
   

  	
  Facsimile: 212-371-7497

  
	
   

  	
   

  
	
  with a copy to:

  	
  Proskauer Rose LLP

  
	
   

  	
  1585 Broadway

  
	
   

  	
  New York, NY 10036

  
	
   

  	
  Attn: Christopher Wells, Esq.

  
	
   

  	
  Facsimile: 212-969-2900

  
	
   

  	
   

  
	
  If to BH III Guarantor:

  	
  c/o Bay Harbour Management, L.C.,

  
	
   

  	
  885 Third Avenue

  
	
   

  	
  New York, NY 10022

  
	
   

  	
  Attn: Douglas Teitelbaum

  
	
   

  	
  Facsimile: 212-371-7497

  

 14
 

 

	
  with a copy to:

  	
  Proskauer Rose LLP

  
	
   

  	
  1585 Broadway

  
	
   

  	
  New York, NY 10036

  
	
   

  	
  Attn: Christopher Wells, Esq.

  
	
   

  	
  Facsimile: 212-969-2900

  
	
   

  	
   

  
	
  If to RE Guarantor:

  	
  9754 Chestnut Ridge Drive

  
	
   

  	
  Windermere, Florida 34786

  
	
   

  	
  Facsimile: (407) 351-4350

  
	
   

  	
   

  
	
  with a copy to:

  	
  Proskauer Rose LLP

  
	
   

  	
  1585 Broadway

  
	
   

  	
  New York, NY 10036

  
	
   

  	
  Attn: Christopher Wells, Esq.

  
	
   

  	
  Facsimile: 212-969-2900

  

 

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, when delivered or the first attempted delivery on a Business Day, (iii)
in the case of expedited prepaid delivery, upon the first attempted delivery on
a Business Day, or (iv) in the case of facsimile, upon sender’s receipt of a
machine generated confirmation of successful transmission after advice by
telephone to recipient that a facsimile notice is forthcoming.

6.3.          GOVERNING LAW AND
SUBMISSION TO JURISDICTION. THIS GUARANTY SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK, EXCEPT
TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF ANY SECURITY INTERESTS HEREUNDER,
OR THE REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED
BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.   ANY
LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR GUARANTOR ARISING OUT OF OR
RELATING TO THIS GUARANTY MAY AT LENDER’S OPTION BE INSTITUTED IN ANY FEDERAL
OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO
SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND GUARANTOR
WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR
FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND GUARANTOR
HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT,
ACTION OR PROCEEDING.  BH IGUARANTOR, BH
II GUARANTOR AND BH III GUARANTOR DO HEREBY DESIGNATE AND APPOINT:

DOUGLAS TEITELBAUM

C/O BAY HARBOUR
MANAGEMENT, L.C.,

885 THIRD AVENUE

NEW YORK, NY 10022

 15
 

AS THEIR AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON EACH OF THEIR
BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT,
ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK,
AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN
NOTICE OF SAID SERVICE MAILED OR DELIVERED TO GUARANTOR IN THE MANNER PROVIDED
HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON
GUARANTOR IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK.

6.4.          Invalid
Provisions.  If any provision of this
Guaranty is held to be illegal, invalid, or unenforceable under present or
future laws effective during the term of this Guaranty, such provision shall be
fully severable and this Guaranty shall be construed and enforced as if such
illegal, invalid or unenforceable provision had never comprised a part of this
Guaranty, and the remaining provisions of this Guaranty shall remain in full
force and effect and shall not be affected by the illegal, invalid or
unenforceable provision or by its severance from this Guaranty, unless such
continued effectiveness of this Guaranty, as modified, would be contrary to the
basic understandings and intentions of the parties as expressed herein.

6.5.          Amendments.  This Guaranty may be amended only by an
instrument in writing executed by the party or an authorized representative of
the party against whom such amendment is sought to be enforced.

6.6.          Parties Bound;
Assignment; Gender.  This Guaranty
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors, assigns, heirs and legal representatives; provided,
however, that Guarantor may not, without the prior written consent of Lender,
assign any of its rights, powers, duties or obligations hereunder.  All pronouns and any variations thereof shall
be deemed to refer to the masculine, feminine, neuter, singular or plural as
the identity of the Person or Persons referred to may require.  Without limiting the effect of specific
references in any provision of this Guaranty, the term “Guarantor”
shall be deemed to refer to each and every Person constituting a Guarantor from
time to time, as the sense of a particular provision may require, and to
include the respective heirs, executors, administrators, legal representatives,
successors and assigns of Guarantor, all of whom shall be bound by the
provisions of this Guaranty.

6.7.          Headings.  Section headings are for convenience of
reference only and shall in no way affect the interpretation of this Guaranty.

6.8.          Recitals.  The recital and introductory paragraphs
hereof are a part hereof, form a basis for this Guaranty and shall be
considered prima  facie evidence of the facts and documents
referred to therein.

6.9.          Rights and
Remedies.  If Guarantor becomes
liable for any indebtedness owing by Borrower to Lender, by endorsement or
otherwise, other than under this Guaranty, such liability shall not be in any
manner impaired or affected hereby and the rights of Lender hereunder shall 

 16
 

be cumulative of any and all other rights that Lender
may ever have against Guarantor.  The
exercise by Lender of any right or remedy hereunder or under any other
instrument, or at law or in equity, shall not preclude the concurrent or
subsequent exercise of any other right or remedy.

6.10.        ENTIRE AGREEMENT.
THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT OF GUARANTOR AND LENDER WITH
RESPECT TO GUARANTOR’S GUARANTY OF THE GUARANTEED OBLIGATIONS AND SUPERSEDES
ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS,
WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF. THIS GUARANTY
IS INTENDED BY GUARANTOR AND LENDER AS A FINAL AND COMPLETE EXPRESSION OF THE
TERMS OF THE GUARANTY, AND NO COURSE OF DEALING BETWEEN GUARANTOR AND LENDER,
NO COURSE OF PERFORMANCE, NO TRADE PRACTICES, AND NO EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC
EVIDENCE OF ANY NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY
ANY TERM OF THIS GUARANTY.  THERE ARE NO
ORAL AGREEMENTS BETWEEN GUARANTOR AND LENDER.

6.11.        WAIVER OF RIGHT TO
TRIAL BY JURY.  GUARANTOR AND, BY ITS
ACCEPTANCE HEREOF, LENDER HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY
ISSUE TRIABLE OF RIGHT BY JURY, AND EACH WAIVES ANY RIGHT TO TRIAL BY JURY
FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH
REGARD TO THIS GUARANTY, THE NOTE, THE SECURITY INSTRUMENTS, THE LOAN
AGREEMENT, OR THE OTHER LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER
ACTION ARISING IN CONNECTION THEREWITH. 
THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY
BY GUARANTOR AND LENDER AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE
AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE
ACCRUE.  EACH PARTY IS HEREBY AUTHORIZED
TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF
THIS WAIVER.

6.12.        Termination.  This Guaranty shall terminate upon the
earlier to occur of (i) the payment in full of the Loan and the Debt
secured thereby and (ii) provided no Event of Default has occurred and is
continuing, receipt by Lender of evidence, reasonably satisfactory to Lender,
of Final Completion of the Renovation Project in accordance with the
requirements of the Loan Documents.

6.13.        USA Patriot Act Notice. 
Lender hereby notifies Guarantor that pursuant to the requirements of
the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) (the “Patriot Act”), it is required to obtain,
verify and record information that identifies Guarantor, which information
includes the name and address of Guarantor and other information that will allow
Lender to identify Guarantor in accordance with the Patriot Act.

 17
 

REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK

 18

IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be duly
executed and delivered as of the day and year first above written.

 

	
  

  	
  BH I GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TROPHY HUNTER INVESTMENTS,
  LTD., a

  
	
   

  	
  Florida limited
  partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:  BAY HARBOUR HOLDINGS, LLC, its general partner

  

 

	
  

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Douglas Teitelbaum

  
	
   

  	
  Title:

  	
  Managing Member

  

 

	
  

  	
  BH II GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BAY HARBOUR 90-1, LTD., a
  Florida limited 

  
	
   

  	
  partnership

  
	
   

  	
   

  
	
   

  	
   

  	
  By:  BAY HARBOUR HOLDINGS, LLC, its general partner

  

 

	
  

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Douglas Teitelbaum

  
	
   

  	
  Title:

  	
  Managing Member

  

 

 

[SIGNATURES CONTINUE ON NEXT PAGE]

BH III GUARANTOR:

BAY HARBOUR MASTER, LTD.

	
  

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

	
  

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

[SIGNATURES CONTINUE ON NEXT PAGE]

RE GUARANTOR:

	
  

  	
  ROBERT EARL

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Robert Earl, individuallyExhibit
10.63

ENVIRONMENTAL
INDEMNITY AGREEMENT

ENVIRONMENTAL
INDEMNITY AGREEMENT, dated as of November   , 2006 (as amended, restated, replaced, supplemented
or otherwise modified from time to time, this “Agreement”), made by PH
FEE OWNER LLC, a Delaware limited liability company (“Fee Owner”), and OPBIZ, L.L.C., a Nevada limited
liability company (“OpBiz” and, together with Fee Owner, individually or
collectively as the context indicates, “Borrower”), each having an
address at 3667 Las Vegas Boulevard South, Las Vegas, Nevada 89109, in favor of
COLUMN FINANCIAL, INC., a Delaware corporation (together with its successors
and assigns, collectively, “Lender”), having an address at 11 Madison
Avenue, New York, New York 10010 and other Indemnified Parties (defined below).

RECITALS:

WHEREAS, pursuant
to that certain Promissory Note, dated as of the date hereof (as the same may
be amended, restated, replaced, supplemented, or otherwise modified from time
to time, the “Note”), executed by Borrower, and payable to the order of Lender
in the original principal amount of up to $820,000,000, Borrower is indebted,
and may from time to time be further indebted, to Lender with respect to a loan
(the “Loan”) made pursuant to that certain Loan Agreement, dated as of
the date hereof (as amended, restated, replaced, supplemented, or otherwise
modified from time to time, the “Loan Agreement”), between Borrower and
Lender, which Loan is secured (in part) by that certain Deed of Trust, Security
Agreement, Assignment of Leases and Rents, Financing Statement and Fixture
Filing, dated as of the date hereof (as amended, restated, replaced,
supplemented, or otherwise modified from time to time, the “Security
Instrument”), and further evidenced, secured or governed by other
instruments and documents executed in connection with the Loan (together with
the Note, the Loan Agreement and Security Instrument, collectively, the “Loan
Documents”);

WHEREAS, Lender is
unwilling to make the Loan unless Borrower agrees to provide the
indemnification, representations, warranties, covenants and other matters
described in this Agreement for the benefit of the Indemnified Parties;

WHEREAS, Borrower
is entering into this Agreement to induce Lender to make the Loan.

NOW, THEREFORE, in
consideration of the premises and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Borrower hereby
represents, warrants, covenants and agrees for the benefit of the Indemnified
Parties as follows:

1.             Environmental Representations and
Warranties. Borrower represents and warrants that, except as otherwise
disclosed by that certain Phase I environmental report prepared by LandAmerica
Assessment Corporation, dated September 13, 2006, (or Phase II environmental
report, if required by Lender) with respect to the Property delivered to Lender
by Borrower in connection with the origination of the Loan (hereinafter
referred to as the “Environmental Report”), to Borrower’s knowledge; (a)
there are no Hazardous Substances (defined below) or underground storage tanks
in, on, or under the Property, except those that are both (i) in compliance
with all applicable Environmental Laws (defined below) and with permits

 

issued pursuant thereto
and (ii) disclosed to Lender in writing pursuant to the Environmental Report; (b) there are no past, present or
threatened Releases (defined below) of Hazardous Substances in, on, under or
from the Property which have not been fully remediated as required by
Environmental Laws in accordance with Environmental Law; (c) no written notice
or other such communication exists from any Person (including but not limited
to a Governmental Authority) relating to any threat of any Release of Hazardous
Substances migrating to the Property; (d) there is no past or present material
non-compliance with Environmental Laws, or with permits issued pursuant
thereto, in connection with the Property which has not been fully remediated as
required by Environmental Laws; (e) no written notice or other such
communication exists from any Person (including but not limited to a
Governmental Authority) relating to a Release of Hazardous Substances or
Remediation (defined below) thereof, of liability of any Person pursuant to any
Environmental Law, any other environmental conditions in connection with the
Property, or any actual or potential administrative or judicial proceedings in
connection with any of the foregoing; and (f)  Borrower has
delivered to Lender, in writing, any and all information relating to conditions
in, on, under or from the Property and all information that is contained in
files and records of Borrower relating to environmental conditions at the
Property, including but not limited to any reports relating to Hazardous
Substances in, on, under or from the Property.

2.             Environmental Covenants. Borrower
covenants and agrees that: (a) all uses and operations on or of the Property,
whether by Borrower or any other Person (subject to commercially reasonable
efforts by Indemnitor to the extent relating to the acts or omissions of
Persons that are not Affiliates of Borrower), shall be in compliance with all
Environmental Laws and permits issued pursuant thereto; (b) there shall be no Releases of Hazardous Substances in, on,
under or from the Property, except those that are (i) in compliance with all
Environmental Laws and with permits issued pursuant thereto and (ii) fully
disclosed to Lender in writing; (c) there shall be no Hazardous Substances in,
on, or under the Property, except those that are (i) in compliance with all
Environmental Laws and with permits issued pursuant thereto and (ii) fully
disclosed to Lender in writing; (d) Borrower shall keep the Property free and
clear of all liens and other encumbrances imposed pursuant to any Environmental
Law, whether due to any act or omission of Borrower or any other Person (the “Environmental
Liens”); (e) Borrower shall, at its sole cost and expense, fully and
expeditiously cooperate in all activities pursuant to Section 3 of this
Agreement, including, but not limited to, providing all relevant information
and making knowledgeable persons available for interviews upon request; (f)  Borrower
shall, at its sole cost and expense, perform any environmental site assessment
or other investigation of environmental conditions in connection with the
Property pursuant to any reasonable written request of Lender made in the event
that Lender reasonably and in good faith believes that Hazardous Substances or
other environmental hazards exist on the Property in violation of Environmental
Law (including, but not limited to, sampling, testing and analysis of soil,
water, air, building materials, and other materials and substances whether
solid, liquid or gas), and share with Lender the reports and other results
thereof, and Lender and the other Indemnified Parties shall be entitled to rely
on such reports and other results thereof; (g) Borrower shall, at its sole cost and expense, comply with
all reasonable written requests of Lender made in the event that Lender
reasonably and in good faith believes that Hazardous Substances or other
environmental hazards exist on the Property in violation of Environmental Law
to (i) effectuate Remediation of any condition (including, but not limited to,
a Release of a Hazardous Substance) required by Environmental Laws in, on,
under or from the Property; (ii) comply with any Environmental 

 2
 

 

Law; (iii) comply with
any directive from any Governmental Authority; and (iv) take any other
reasonable action necessary or appropriate for protection of human health or
the environment when required by Environmental Law or supported by the opinion
of a qualified technical consultant; (h) Borrower shall not take any action,
and shall use commercially reasonable efforts not to allow any tenant or other
user of the Property to take any action with respect to Hazardous Substances,
that materially increases the dangers to human health or the environment on the
Property, poses an unreasonable risk of harm to any Person (whether on or off
the Property), impairs the value of the Property, is contrary to any
requirement of any insurer of the Property, constitutes a public or private
nuisance, constitutes waste, or violates any covenant, condition, agreement or
easement applicable to the Property; and (i) Borrower shall promptly notify
Lender in writing of (A) any presence or Releases of Hazardous Substances in,
on, under, or from the Property, (B) any material non-compliance with any
Environmental Laws related in any way to the Property, (C) any actual
Environmental Lien, (D) any required or proposed Remediation of Hazardous
Substances relating to the Property and (E) any written notice or other such
communication of which Borrower becomes aware from any source whatsoever
(including, but not limited to, a Governmental Authority) relating in any way
to Hazardous Substances affecting the Property or Remediation thereof,
liability of Borrower pursuant to any Environmental Law related to the
Property, other environmental conditions pertaining to Hazardous Substances in
connection with the Property, or any actual or potential administrative or
judicial proceedings in connection with anything referred to in this Agreement.

3.             Indemnified
Rights/Cooperation and Access. In the event that any Indemnified Party has
reason to believe that a Release or a material violation of Environmental Law
exists on the Property that, in the reasonable discretion of the Indemnified
Party, endangers any tenants or other occupants of the Property or their guests
or the general public or materially and adversely affects the value of the
Property, upon reasonable notice from Lender or such Indemnified Party,
Borrower shall, at Borrower’s expense, promptly cause an engineer or consultant
reasonably satisfactory to Lender and such Indemnified Party to conduct an
environmental assessment or audit (the scope of which shall be determined in
the reasonable discretion of Lender and/or such Indemnified Party) and take any
samples of soil, groundwater or other water, air, or building materials or any
other invasive testing reasonably requested by Lender and promptly deliver to
Lender and such Indemnified Party the results of any such assessment, audit,
sampling or other testing; provided, that if such results are not
delivered to Lender and such Indemnified Party within a reasonable period or if
any Indemnified Party has reason to believe that a Release or material
violation of Environmental Law exists on the Property that, in the reasonable
judgment of the Indemnified Party, endangers any tenant or other occupant of
the Property or their guests or the general public or may materially and
adversely affect the value of the Property, upon reasonable notice to Borrower,
Lender or such Indemnified Party and any other Person designated by Lender or
such Indemnified Party, including, but not limited to, any receiver, any
representative of a Governmental Authority, and any environmental consultant,
shall have the right, but not the obligation, to enter upon the Property at all
reasonable times (with reasonable notice to Indemnitor) to assess any and all
aspects of the environmental condition of the Property and its use, including
but not limited to, conducting any environmental assessment or audit (the scope
of which shall be determined in the reasonable discretion of Lender and/or such
Indemnified Party) and taking samples of soil, groundwater or other water, air,
or building materials, and reasonably conducting other invasive testing.
Borrower shall cooperate with and provide the Indemnified Parties and any such
Person designated by the Indemnified Parties with 

 

 3
 

 

access to the Property
and the Indemnified Parties shall minimize interference with use of and
activities of tenants on the Property.

4.             Indemnification.
Borrower covenants and agrees, jointly and severally, at its sole cost and
expense, to protect, defend, indemnify, release and hold Indemnified Parties
harmless from and against any and all Losses (defined below) imposed upon or
incurred by or asserted against any Indemnified Parties and directly or
indirectly arising out of or in any way relating to any one or more of the
following: (i) any presence of any Hazardous Substances in, on, above, or under
the Property; (ii) any past, present or threatened Release of Hazardous
Substances in, on, above, under or from the Property; (iii) any activity by
Borrower, any Person affiliated with Borrower, and any tenant or other user of
the Property in connection with any actual, proposed or threatened use,
treatment, storage, holding, existence, disposition or other Release,
generation, production, manufacturing, processing, refining, control,
management, abatement, removal, handling, transfer or transportation to or from
the Property of any Hazardous Substances at any time located in, under, on or
above the Property in violation of Environmental Laws; (iv) any activity by
Borrower, any Person affiliated with Borrower, and any tenant or other user of
the Property in connection with any actual or proposed Remediation of any
Hazardous Substances at any time located in, under, on or above the Property, whether
or not such Remediation is voluntary or pursuant to court or administrative
order, including, but not limited to, any removal, remedial or corrective
action; (v) any past, present or threatened non-compliance or violations of any
Environmental Laws (or permits issued pursuant to any Environmental Law) in
connection with the Property or operations thereon, including, but not limited
to, any failure by Borrower, any Person affiliated with Borrower, and any
tenant or other user of the Property to comply with any order of any
Governmental Authority in connection with any Environmental Laws; (vi) the
imposition, recording or filing or the threatened imposition, recording or
filing of any Environmental Lien encumbering the Property; (vii) any
administrative processes or proceedings or judicial proceedings in any way
connected with any matter addressed in this Agreement; (viii) any past, present
or threatened injury to, destruction of or loss of natural resources in any way
connected with the Property, including, but not limited to, costs to
investigate and assess such injury, destruction or loss; (ix) any acts of
Borrower, any Person affiliated with Borrower, and any tenant or other user of
the Property in arranging for disposal or treatment, or arranging with a
transporter for transport for disposal or treatment, of Hazardous Substances at
any facility or incineration vessel containing Hazardous Substances; (x) any
acts of Borrower, any Person affiliated with Borrower, and any tenant or other
user of the Property in accepting any Hazardous Substances for transport to
disposal or treatment facilities, incineration vessels or sites from which
there is a Release, or a threatened Release of any Hazardous Substance which
causes the incurrence of costs for Remediation; (xii) any personal injury,
wrongful death, or property or other damage arising from the presence of or a
Release of Hazardous Substances at the Property under any statutory or common
law or tort law theory, including, but not limited to, damages assessed for
private or public nuisance or for the conducting of an abnormally dangerous
activity on or near the Property; and (xiii) any misrepresentation or
inaccuracy in any representation or warranty or breach or failure to perform
any covenants or other obligations pursuant to this Agreement. 

 

 4
 

 

5.             Duty to Defend and Attorneys and
Other Fees and Expenses. Upon written request by any Indemnified Party,
Borrower shall defend any claim, action or proceeding (a “Claim”) that
is brought against any Indemnified Party (if requested by any Indemnified
Party, in the name of the Indemnified Party), at Borrower’s sole cost and
expense, by attorneys and other professionals reasonably approved by such
Indemnified Party (it being understood that counsel selected by Borrower’s
insurance carrier shall be deemed to be acceptable to such Indemnified Party,
and such counsel may also represent Borrower in such investigation, action or
proceeding). Notwithstanding the foregoing, any Indemnified Parties may, in
their sole and absolute discretion, engage their own attorneys and other
professionals to defend or assist them, and, at the option of Indemnified
Parties, their attorneys shall control the resolution of any Claim, provided
that no compromise or settlement shall be entered without Borrower’s consent,
which consent shall not be unreasonably withheld. Upon demand, Borrower shall
pay or, in the sole and absolute discretion of the Indemnified Parties,
reimburse, the Indemnified Parties for the payment of reasonable fees and disbursements
of attorneys, engineers, environmental consultants, laboratories and other
professionals in connection therewith.

6.             Certain Definitions. Any
capitalized term utilized herein shall have the meaning as specified in the
Loan Agreement, unless such term is otherwise specifically defined herein. As
used in this Agreement, the following terms shall have the following meanings:

“Environmental Law” means any present and
future laws, statutes, ordinances, rules, regulations and the like, as well as
common law, of any applicable jurisdiction relating to protection of human
health and safety or the environment, relating to Hazardous Substances,
relating to liability for or costs of other actual or threatened danger to
human health and safety, the environment or similar issues, including (without
limitation) any present and future laws, statutes ordinances, rules,
regulations, permits or authorizations and the like, as well as common law,
that (a) condition transfer of property upon a negative declaration or other
approval of a Governmental Authority of the environmental condition of the
Property; (b) require notification or disclosure of Releases of Hazardous
Substances or other environmental condition of the Property to any Governmental
Authority or other Person, whether or not in connection with transfer of title
to or interest in property; (c) impose conditions or requirements in connection
with permits or other authorization for lawful activity; (d) relate to
nuisance, trespass or other causes of action related to the Property, in each
case to the extent related to Hazardous Substances; or (e) relate to wrongful
death, personal injury, or property or other damage in connection with any
physical condition or use of the Property, in each case to the extent related
to Hazardous Substances, and including (without limitation) the Resource
Conservation and Recovery Act, 42 U.S.C. §  6901 et seq., as
amended; the Comprehensive Environmental Response, Compensation and Liability
Act, 42 U.S.C. § 9601 et seq., as amended; the Toxic
Substances Control Act, 15 U.S.C. § 2601 et seq., as amended; the Oil Pollution Act,
33 U.S.C. § 2701
et seq., as amended; the Clean Air Act, 42 U.S.C. § 7401 et seq., as amended; the Hazardous
Material Transportation Act, 49 U.S.C. § 1801
et seq.; the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.;
the Occupational Safety and Health Act, 29 U.S.C. §  651 et seq.; the Nevada Hazardous Materials law
(NRS Chapter 459); the Nevada Solid Waste/Disposal of Garbage or Sewage law
(NRS 444.440 to 444.650, inclusive); the Nevada Water Controls/Pollution law
(NRS Chapter 445A); the Nevada Air Pollution law (NRS Chapter 445B); the 

 

 5
 

 

Nevada Cleanup of Discharged Petroleum law (NRS 590.700 to 590.920,
inclusive); the Nevada Control of Asbestos law (NRS 618.750 to 618.850,
inclusive); the Nevada Appropriation of Public Waters law (NRS 533.324 to
533.4385, inclusive); and the Nevada Artificial Water Body Development Permit
law (NRS 502.390).

“Hazardous Substances” shall mean any and all
substances (whether solid, liquid or gas) defined, listed, or otherwise
classified as pollutants, hazardous wastes, hazardous substances, hazardous
materials, extremely hazardous wastes, or words of similar meaning or
regulatory effect under any present or future Environmental Laws or that is
reasonably likely to have a negative impact on human health or the environment,
including, but not limited to, petroleum and petroleum products, asbestos and
asbestos- containing materials, polychlorinated biphenyls, lead, radon, mold,
mycotoxins, microbial matter, airborne pathogens (naturally occurring or
otherwise), radioactive materials, flammables and explosives, but excluding
substances of kinds and in amounts ordinarily and customarily used or stored in
properties similar to the Property for the purposes of cleaning or other
maintenance or operations by Borrower and/or any tenants or licensees at the
Property and otherwise in compliance with all applicable Environmental Laws.

“Indemnified Parties” shall mean Lender, any
Person who is or will have been involved in the servicing of the Loan, any
Person in whose name the encumbrance created by the Security Instrument is or
will have been recorded, Persons who may hold or acquire or will have held a
full or partial interest in the Loan (including, but not limited to, investors
or prospective investors in the Securities, as well as custodians, trustees and
other fiduciaries who hold or have held a full or partial interest in the Loan
for the benefit of third parties) as well as the respective directors,
officers, shareholders, partners, employees, agents, servants, representatives,
contractors, subcontractors, affiliates, subsidiaries, participants, successors
and assigns of any and all of the foregoing (including, but not limited to, any
other Person who holds or acquires or will have held a participation or other
full or partial interest in the Loan, whether during the term of the Loan or as
a part of or following a foreclosure of the Loan and any successors by merger,
consolidation or acquisition of all or a substantial portion of Lender’s assets
and business).

“Lega1 Action” shall mean any claim, suit or
proceeding, whether administrative or judicial in nature.

“Losses” includes any losses, damages, costs,
fees, expenses, claims, suits, judgments, awards, liabilities (including, but
not limited to, strict liabilities), obligations, debts, diminutions in value,
fines, penalties, charges, costs of Remediation (whether or not performed
voluntarily), amounts paid in settlement, foreseeable and unforeseeable
consequential damages, litigation costs, attorneys’ fees, engineers’ fees,
environmental consultants’ fees, and investigation costs (including, but not
limited to, costs for sampling, testing and analysis of soil, water, air, building
materials, and other materials and substances whether solid, liquid or gas), of
whatever kind or nature, and whether or not incurred in connection with any
judicial or administrative proceedings, actions, claims, suits, judgments or
awards. 

 

 

 6

 

“Release” includes, but is not limited to, any
release, deposit, discharge, emission, leaking, leaching, spilling, seeping,
migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing,
growing or other movement of Hazardous Substances in violation of Environmental
Laws.

“Remediation” includes, but is not limited to,
any response, remedial, removal, or corrective action; any activity to clean
up, detoxify, decontaminate, contain or otherwise remediate any Hazardous
Substance; any actions to prevent, cure or mitigate any Release of any
Hazardous Substance; any action to comply with any Environmental Laws or with
any permits issued pursuant thereto; any inspection, investigation, study,
monitoring, assessment, audit, sampling and testing, laboratory or other
analysis, or evaluation relating to any Hazardous Substances or to anything
referred to herein.

7. Unimpaired Liability. The liability of Borrower under
this Agreement shall in no way be limited or impaired by, and Borrower hereby
consents to and agrees to be bound by, any amendment or modification of the
provisions of the Note, the Loan Agreement, the Security Instrument or any of
the other Loan Documents. In addition, the liability of Borrower under this
Agreement shall in no way be limited or impaired by (a) any extensions of time
for performance required by the Note, the Loan Agreement, the Security
Instrument or any of the other Loan Documents, (b) any sale or transfer of all
or part of the Property, (c) except as provided herein, any exculpatory
provision in the Note, the Loan Agreement, the Security Instrument or any of
the other Loan Documents limiting Lender’s recourse to the Property or to any
other security for the Note, or limiting Lender’s rights to a deficiency
judgment against Borrower, (d) the accuracy or inaccuracy of the
representations and warranties made by Borrower or any other Person under the
Note, the Loan Agreement, the Security Instrument or any of the other Loan
Documents or herein, (e) the release of Borrower or any other Person from
performance or observance of any of the agreements, covenants, terms or
conditions contained in any of the other Loan Documents by operation of law,
Lender’s voluntary act, or otherwise, (f) the release or substitution in whole
or in part of any security for the Note, or (g) Lender’s failure to record the
Security Instrument or file any UCC financing statements (or Lender’s improper
recording or filing of any thereof) or to otherwise perfect, protect, secure or
insure any security interest or lien given as security for the Note; and, in
any such case, whether with or without notice to Borrower and with or without
consideration.

8. Enforcement.
Indemnified Parties may enforce the obligations of Borrower without first
resorting to, or exhausting any security or collateral under, or without first
having recourse pursuant to, the Note, the Loan Agreement, the Security
Instrument, or any of the other Loan Documents or any of the Property, through
foreclosure proceedings or otherwise; provided, that nothing herein
shall inhibit or prevent Lender from suing on the Note, foreclosing, or
exercising any power of sale under, the Security Instrument, or exercising any
other rights and remedies thereunder. This Agreement is not collateral or
security for the debt of Borrower pursuant to the Loan, unless Lender expressly
elects in writing to make this Agreement additional collateral or security for
the debt of Borrower pursuant to the Loan, which Lender is entitled to do in
its sole and absolute discretion. It is not necessary for an Event of Default
to have occurred for any Indemnified Party to exercise their rights pursuant to
this Agreement. Notwithstanding any provision of the Loan Agreement, the
obligations pursuant to this Agreement are exceptions to any non-recourse or
exculpation provision of the Loan Agreement 

 

 7
 

 

and Borrower is fully and
personally liable for such obligations, and such liability is not limited to
the original or amortized principal balance of the Loan or the value of the
Property.

9. Survival.
The obligations and liabilities of Borrower under this Agreement shall fully
survive indefinitely notwithstanding any termination, satisfaction, assignment,
entry of a judgment of foreclosure, exercise of any power of sale, or delivery
of a deed in lieu of foreclosure of the Security Instrument. Notwithstanding
the foregoing or any provisions of this Agreement to the contrary, the
liabilities and obligations of the Indemnitor hereunder shall terminate five
(5) years after payment in full of all principal and interest due on the Loan
except with respect to any outstanding obligations. The liabilities and
obligations of Borrower hereunder shall not apply to the extent that Borrower
proves that such liabilities and obligations arose solely from Hazardous
Substances that: (a) were not present on or a threat to the Property prior to
the date that Lender or its nominee acquired title to the Property, whether by
foreclosure, exercise of power of sale or otherwise and (b) were not the result
of any act or negligence of Borrower or any of Borrower’s affiliates, agents or
contractors.

10. Interest.
Any amounts payable to any Indemnified Parties under this Agreement shall
become immediately due and payable on demand and, if not paid within five (5)
days of such demand therefor, shall bear interest at the Default Rate.

11.  WAIVERS. BORROWER HEREBY WAIVES (I)
ANY RIGHT OR CLAIM OF RIGHT TO CAUSE A MARSHALING OF BORROWER’S ASSETS OR TO
CAUSE LENDER OR OTHER INDEMNIFIED PARTIES TO PROCEED AGAINST ANY OF THE SECURITY
FOR THE LOAN BEFORE PROCEEDING UNDER THIS AGREEMENT AGAINST BORROWER; (II) AND
RELINQUISHES ALL RIGHTS AND REMEDIES ACCORDED BY APPLICABLE LAW TO INDEMNITORS
OR GUARANTORS, EXCEPT ANY RIGHTS OF SUBROGATION WHICH BORROWER MAY HAVE,
PROVIDED THAT THE INDEMNITY PROVIDED FOR HEREUNDER SHALL NEITHER BE CONTINGENT
UPON THE EXISTENCE OF ANY SUCH RIGHTS OF SUBROGATION NOR SUBJECT TO ANY CLAIMS
OR DEFENSES WHATSOEVER WHICH MAY BE ASSERTED IN CONNECTION WITH THE ENFORCEMENT
OR ATTEMPTED ENFORCEMENT OF SUCH SUBROGATION RIGHTS INCLUDING, WITHOUT
LIMITATION, ANY CLAIM THAT SUCH SUBROGATION RIGHTS WERE ABROGATED BY ANY ACTS
OF LENDER OR OTHER INDEMNIFIED PARTIES; (III) THE RIGHT TO ASSERT A
COUNTERCLAIM, OTHER THAN A MANDATORY OR COMPULSORY COUNTERCLAIM, IN ANY ACTION
OR PROCEEDING BROUGHT AGAINST OR BY LENDER OR OTHER INDEMNIFIED PARTIES UNDER
OR PURSUANT TO THIS AGREEMENT; (IV) NOTICE OF ACCEPTANCE HEREOF AND OF ANY
ACTION TAKEN OR OMITTED IN RELIANCE HEREON; (V) PRESENTMENT FOR PAYMENT, DEMAND
OF PAYMENT, PROTEST OR NOTICE OF NONPAYMENT OR FAILURE TO PERFORM OR OBSERVE,
OR OTHER PROOF, OR NOTICE OR DEMAND; AND (VI) ALL HOMESTEAD EXEMPTION RIGHTS
AGAINST THE OBLIGATIONS HEREUNDER AND THE BENEFITS OF ANY STATUTES OF
LIMITATIONS OR REPOSE. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED
HEREIN, BORROWER HEREBY AGREES TO POSTPONE THE EXERCISE OF ANY RIGHTS OF
SUBROGATION WITH RESPECT TO ANY COLLATERAL SECURING THE LOAN UNTIL THE LOAN
SHALL HAVE BEEN PAID IN FULL. 

 

 8
 

 

12. Subrogation. Borrower shall take any and
all reasonable actions, including institution of legal action against third
parties, necessary or appropriate to obtain reimbursement, payment or
compensation from such Persons responsible for the presence of any Hazardous
Substances at, in, on, under or near the Property or otherwise obligated by law
to bear the cost. Indemnified Parties shall be and hereby are subrogated to all
of Borrower’s rights now or hereafter in such claims.

13. Representations
and Warranties. Borrower represents and warrants that:

(a) it has the full power and authority to execute and
deliver this Agreement and to perform its obligations hereunder; the execution,
delivery and performance of this Agreement by Borrower has been duly and
validly authorized; and all requisite action has been taken by Borrower to make
this Agreement valid and binding upon Borrower, enforceable in accordance with
its terms;

(b)  its execution of, and compliance with, this Agreement is
in the ordinary course of business of Borrower and will not result in the breach
of any term or provision of the charter, by-laws, partnership or trust
agreement, or other governing instrument of Borrower or result in the breach of
any term or provision of, or conflict with or constitute a default under, or
result in the acceleration of any obligation under, any agreement, indenture or
loan or credit agreement or other instrument to which Borrower or the Property
is subject, or result in the violation of any law, rule, regulation, order,
judgment or decree to which Borrower or the Property is subject;

(c) to the best of Borrower’s knowledge, there is no
action, suit, proceeding or investigation pending or threatened against it
which, either in any one instance or in the aggregate, may result in any
material adverse change in the business, operations, financial condition,
properties or assets of Borrower, or in any material impairment of the right or
ability of Borrower to carry on its business substantially as now conducted, or
in any material liability on the part of Borrower, or which would draw into
question the validity of this Agreement or of any action taken or to be taken
in connection with the obligations of Borrower contemplated herein, or which
would be likely to impair materially the ability of Borrower to perform under
the terms of this Agreement;

(d)  it does not believe, nor does it have any reason
or cause to believe, that it cannot perform each and every covenant contained
in this Agreement;

(e) to the best of Borrower’s knowledge, no approval,
authorization, order, license or consent of, or registration or filing with,
any governmental authority or other person, and no approval, authorization or
consent of any other party is required in connection with this Agreement; and

(f)  this
Agreement constitutes a valid, legal and binding obligation of Borrower,
enforceable against it in accordance with the terms hereof.

14. No Waiver. No delay by any Indemnified Party in
exercising any right, power or privilege under this Agreement shall operate as
a waiver of any such privilege, power or right. 

 

 9
 

 

15. Notice of
Legal Actions. Borrower shall, within five business days of receipt
thereof, give written notice to Lender of (a) any written notice, advice or
other such communication from any Governmental Authority or from any other
source whatsoever with respect to Hazardous Substances on, from or affecting
the Property, and (b) any legal action brought against such party or related to
the Property, with respect to which Borrower may have liability under this
Agreement.

16. Examination
of Books and Records. Indemnified Parties and their accountants shall have
the right to examine the records, books, management and other papers of
Borrower which reflect upon its financial condition, at the Property or at the
office regularly maintained by Borrower where the books and records are
located. Indemnified Parties and their accountants shall have the right to make
copies and extracts from the foregoing records and other papers. In addition,
at reasonable times and upon reasonable notice, Indemnified Parties and their
accountants shall have the right to examine and audit the books and records of
Borrower pertaining to the income, expenses and operation of the Property
during reasonable business hours at the office of Borrower where the books and
records are located.

17. Transfer of
Loan. Lender may, at any time, sell, transfer or assign the Note, the Loan
Agreement, the Security Instrument, this Agreement and the other Loan
Documents, and any or all servicing rights with respect thereto, or grant participations
therein or issue securities evidencing a beneficial interest in a rated or
unrated public offering or private placement (collectively,
“Securities”). Lender may forward to each purchaser, transferee, assignee,
servicer, participant or investor in Securities or any credit rating agency
rating such Securities (each of the foregoing entities, an “Investor”)
and each prospective Investor, all documents and information which Lender now
has or may hereafter acquire relating to Borrower and the Property, whether
furnished by Borrower, any guarantor or otherwise, as Lender determines
necessary or desirable. Borrower shall cooperate with Lender in connection with
any transfer described in this Section 17, including, without
limitation, the delivery of an estoppel certificate required in accordance with
the Loan Agreement and/or in such form, substance and detail as Lender, such
Investor or prospective Investor may reasonably require and such other
documents as may be reasonably requested by Lender. Borrower shall also
furnish, and Borrower hereby consents to Lender furnishing to such Investors or
such prospective Investors, any and all information concerning the financial
condition of Borrower and any and all information concerning the Property and
the Leases as may be requested by Lender, any Investor or any prospective
Investor in connection with any sale, transfer or participation interest.

18. Taxes.
Borrower has filed all federal, state, county, municipal, and city income and
other tax returns required to have been filed by it and has paid all taxes and
related liabilities which have become due pursuant to such returns or pursuant
to any assessments received by it. Borrower has any knowledge of any basis for
any additional assessment in respect of any such taxes and related liabilities
for prior years.

19. Notices.
All notices, demands, requests, consents, approvals or other communications
(any of the foregoing, a “Notice”) required, permitted, or desired to be
given hereunder shall be in writing sent by facsimile or by registered or
certified mail, postage prepaid, return receipt requested, or delivered by hand
or reputable overnight courier addressed to the party to be so notified at its
address hereinafter set forth, or to such other address as such party 

 

 10
 

 

may hereafter specify in
accordance with the provisions of this Section 19. Any Notice shall be
deemed to have been received: (a) three (3) days after the date such Notice is
mailed, (b) on the date of sending by facsimile if sent during business hours
on a Business Day (otherwise on the next Business Day), (c) on the date of
delivery by hand if delivered during business hours on a Business Day
(otherwise on the next Business Day), and (d) on the next Business Day if sent
by an overnight commercial courier, in each case addressed to the parties as
follows:

	
  If to Borrower:

  	
   

  	
  3667 Las Vegas Boulevard South

  
	
   

  	
   

  	
   Las Vegas, Nevada 89109

  
	
   

  	
   

  	
  Attention: Mark
  Helm, Esq.

  
	
   

  	
   

  	
  Facsimile No.:
  (702) 785-5936

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Greenberg Traurig, LLP

  
	
   

  	
   

  	
  200 Park Avenue

  
	
   

  	
   

  	
  New York, NY
  10166

  
	
   

  	
   

  	
  Attention:
  Joseph F. Kishel, Esq.

  
	
   

  	
   

  	
  Facsimile No.
  (212) 801-6400

  
	
   

  	
   

  	
   

  
	
  If to Lender:

  	
   

  	
  Column Financial, Inc.

  
	
   

  	
   

  	
  11 Madison
  Avenue

  
	
   

  	
   

  	
  New York, New
  York 10010

  
	
   

  	
   

  	
  Attention: Michael
  May

  
	
   

  	
   

  	
  Facsimile No.
  (212) 352-8106

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Column Financial, Inc.

  
	
   

  	
   

  	
  One Madison
  Avenue

  
	
   

  	
   

  	
  New York, New
  York 10010

  
	
   

  	
   

  	
  Legal and
  Compliance Department

  
	
   

  	
   

  	
  Attention: Casey
  McCutcheon, Esq.

  
	
   

  	
   

  	
  Facsimile No.
  (917) 326-8433

  
	
   

  	
   

  	
   

  
	
  and a copy to:

  	
   

  	
  Fried, Frank, Harris, Shriver & Jacobson LLP

  
	
   

  	
   

  	
  One New York
  Plaza

  
	
   

  	
   

  	
  New York, New
  York 10004

  
	
   

  	
   

  	
  Attention:
  Jonathan Mechanic, Esq.

  
	
   

  	
   

  	
  Facsimile No.:
  (212) 859-4000

  

 

20. Duplicate
Originals; Counterparts. This Agreement may be executed in any number of
duplicate originals and each duplicate original shall be deemed to be an
original. This Agreement may be executed in several counterparts, each of which
counterparts shall be deemed an original instrument and all of which together
shall constitute a single Agreement. The failure of any party hereto to execute
this Agreement, or any counterpart hereof, shall not relieve the other
signatories from their obligations hereunder.

21. No Oral
Change. This Agreement, and any provisions hereof, may not be modified,
amended, waived, extended, changed, discharged or terminated orally or by any
act or failure to act on the part of Borrower or any Indemnified Party, but
only by an agreement in 

 

 11
 

 

writing signed by the
party against whom enforcement of any modification, amendment, waiver,
extension, change, discharge or termination is sought.

22. Headings,
Etc. The headings and captions of various paragraphs of this Agreement are
for convenience of reference only and are not to be construed as defining or
limiting, in any way, the scope or intent of the provisions hereof.

23. Number and
Gender/Successors and Assigns. All pronouns and any variations thereof
shall be deemed to refer to the masculine, feminine, neuter, singular or plural
as the identity of the Person or Persons referred to may require. Without
limiting the effect of specific references in any provision of this Agreement,
the term “Borrower” shall be deemed to refer to each and every Person
comprising an Borrower from time to time, as the sense of a particular
provision may require, and to include the heirs, executors, administrators,
legal representatives, successors and assigns of such Borrower, all of whom
shall be bound by the provisions of this Agreement, provided that no obligation
of any Borrower may be assigned except with the written consent of Lender. Each
reference herein to Lender shall be deemed to include its successors and
assigns. This Agreement shall inure to the benefit of Indemnified Parties and
their respective successors and assigns forever.

24. Release of
Liability. Any one or more parties liable upon or in respect of this
Agreement may be released without affecting the liability of any party not so
released.

25. Rights
Cumulative. The rights and remedies herein provided are cumulative and not
exclusive of any rights or remedies which Lender has under the Note, the
Security Instrument, the Loan Agreement or the other Loan Documents or would
otherwise have at law or in equity.

26. Inapplicable
Provisions. If any term, condition or covenant of this Agreement shall be
held to be invalid, illegal or unenforceable in any respect, this Agreement
shall be construed without such provision.

27. Governing
Law; Submission to Jurisdiction. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York (without giving
effect to choice of law principles) and the applicable laws of the United
States of America. Any legal suit, action or proceeding against Borrower or
Lender arising out of or relating to this Agreement may, at Lender’s option, be
instituted in any Federal or State court in the City of New York, County of New
York, pursuant to Section 5-1402 of the New York General Obligations Law, and
Borrower waives any objections which it may now or hereafter have based on
venue and/or forum non conveniens of any such suit, action or proceeding, and
Borrower and hereby irrevocably submits to the jurisdiction of any such court
in any suit, action or proceeding. Borrower does hereby designate and appoint:

National Registered Agents, Inc.

875 Avenue of the Americas, Suite 501

New York, New York 10001

 

 12
 

 

as its authorized agent
to accept and acknowledge on its behalf service of any and all process which
may be served in any such suit, action or proceeding in any Federal or State
court in New York, New York, and agrees that service of process upon said agent
at said address and written notice of said service mailed or delivered to
Borrower in the manner provided herein shall be deemed in every respect
effective service of process upon Borrower in any such suit, action or
proceeding in the State of New York.

28. Miscellaneous.

(a)  Wherever pursuant to this Agreement (i) Lender
exercises any right given to it approve or disapprove, (ii) any arrangement or
term is to be satisfactory to Lender, or (iii) any other decision or
determination is to be made by Lender, the decision of Lender to approve or
disapprove, all decisions that arrangements or terms are satisfactory or not
satisfactory and all other decisions and determinations made by Lender, shall
be in the sole and absolute discretion of Lender and shall be final and
conclusive, except as may be otherwise expressly and specifically provided
herein.

(b)  Wherever pursuant to this Agreement it is
provided that Borrower pay any costs and expenses, such costs and expenses
shall include, but not be limited to, legal fees and disbursements of Lender,
whether retained firms, the reimbursements for the expenses of the in-house
staff or otherwise.

29. Joint and
Several Liability. Notwithstanding any other provision of this Agreement,
the liability of each Borrower under this Agreement shall be joint and several.

[NO FURTHER TEXT
ON THIS PAGE]

 

 13
 

 

                IN WITNESS WHEREOF, Borrower has caused this
Agreement to be duly executed and delivered as of the date first above written.

	
  

  	
  PH FEE OWNER LLC, a
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Mark Helm

  	
   

  
	
   

  	
   

  	
  Name: Mark Helm

  
	
   

  	
   

  	
  Title: VP/GC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OPBIZ, L.L.C., a Nevada limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Donna
  Lehmann

  	
   

  
	
   

  	
   

  	
  Name: Donna Lehmann

  
	
   

  	
   

  	
  Title: EVP/CFO

  
	
   

  	
   

  
						

 

 14

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