Document:

Loan Agreement, dated August 28, 2003

 Exhibit 10.4 
  
 LOAN AGREEMENT 
  
 among 
  
 SUNSTONE LAX AIRPORT, LLC 
 SUNSTONE SH HOTELS L.L.C. 
 SUNSTONE OP PROPERTIES L.L.C. 
 SUNSTONE CHANDLER, LLC 
 SHP OGDEN, LLC 
 jointly and severally, as the Borrowers 
  
 The Senior Lenders Party Hereto 
 as Senior Lenders 
  
 The Junior Lenders Party Hereto 
 as Junior Lenders 
  
 and

  
 MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

 as Administrative Agent 
  
 Financing of portfolio of 35 hotels located in the States of Arizona, California, Colorado, 
 Minnesota, New Mexico, Oregon, Utah and Washington 
  
 Dated as of August     , 2003 
  

					
	 ARTICLE I CERTAIN DEFINITIONS
	  	2
			
	 Section 1.1
	  	 Certain Definitions
	  	2
			
	 Section 1.2
	  	 Types
	  	25
			
	 Section 1.3
	  	 Borrower; Joint and Several Liability; Suretyship Waivers
	  	26
			
	 Section 1.4
	  	 Interpretation
	  	29
		
	 ARTICLE II LOAN TERMS
	  	30
			
	 Section 2.1
	  	 The Commitments, Loans and Notes
	  	30
			
	 Section 2.2
	  	 Interest Rate; Late Charge; Default Rate
	  	32
			
	 Section 2.3
	  	 Terms of Payment
	  	34
			
	 Section 2.4
	  	 Security
	  	38
			
	 Section 2.5
	  	 Payments; Priority; Etc.
	  	38
			
	 Section 2.6
	  	 Yield Protection; Etc.
	  	41
			
	 Section 2.7
	  	 Release of Properties
	  	46
			
	 Section 2.8
	  	 Extension of Loan Terms and Maturity
	  	51
			
	 Section 2.9
	  	 Standard Earnout Advances
	  	53
			
	 Section 2.10
	  	 Special Earnout Advances
	  	55
		
	 ARTICLE III INSURANCE, CONDEMNATION, RESERVES AND CASH MANAGEMENT
	  	58
			
	 Section 3.1
	  	 Insurance
	  	58
			
	 Section 3.2
	  	 Condemnation Awards
	  	64
			
	 Section 3.3
	  	 Restoration
	  	65
		
	 ARTICLE IV ENVIRONMENTAL MATTERS
	  	70
			
	 Section 4.1
	  	 Certain Definitions
	  	70
			
	 Section 4.2
	  	 Representations and Warranties on Environmental Matters
	  	72
			
	 Section 4.3
	  	 Covenants on Environmental Matters
	  	72
			
	 Section 4.4
	  	 Allocation of Risks and Indemnity
	  	73
			
	 Section 4.5
	  	 No Waiver
	  	76
		
	 ARTICLE V CERTAIN PROPERTY MATTERS;
	  	76
			
	 Section 5.1
	  	 Leases
	  	76
			
	 Section 5.2
	  	 Lease Covenants and Limitations
	  	76

  

					
			
	 Section 5.3
	  	 Budgets
	  	77
			
	 Section 5.4
	  	 Books and Records
	  	79
			
	 Section 5.5
	  	 Notices
	  	79
			
	 Section 5.6
	  	 Management and Franchises
	  	79
			
	 Section 5.7
	  	 Establishment of Depository Accounts
	  	80
			
	 Section 5.8
	  	 Establishment and Funding of Reserves With Administrative Agent
	  	80
			
	 Section 5.9
	  	 Cash Flows; Interest on and Disbursements From Reserves
	  	83
			
	 Section 5.10
	  	 Pledge and Grant of Security Interest
	  	89
			
	 Section 5.11
	  	 Interest on Funds in Reserves
	  	89
		
	 ARTICLE VI REPRESENTATIONS AND WARRANTIES
	  	90
			
	 Section 6.1
	  	 Organization, Power and Authority
	  	90
			
	 Section 6.2
	  	 Validity of Loan Documents
	  	90
			
	 Section 6.3
	  	 No Conflicts
	  	90
			
	 Section 6.4
	  	 Liabilities; Litigation
	  	90
			
	 Section 6.5
	  	 Taxes and Assessments
	  	91
			
	 Section 6.6
	  	 Other Agreements; Defaults
	  	91
			
	 Section 6.7
	  	 Title
	  	91
			
	 Section 6.8
	  	 Compliance with Law
	  	92
			
	 Section 6.9
	  	 Location of Borrowers
	  	92
			
	 Section 6.10
	  	 ERISA
	  	92
			
	 Section 6.11
	  	 Forfeiture
	  	93
			
	 Section 6.12
	  	 Tax Filings
	  	93
			
	 Section 6.13
	  	 Solvency
	  	93
			
	 Section 6.14
	  	 Full and Accurate Disclosure
	  	94
			
	 Section 6.15
	  	 Flood Zone
	  	94
			
	 Section 6.16
	  	 Federal Reserve Regulations
	  	94
			
	 Section 6.17
	  	 Not a Foreign Person
	  	94
			
	 Section 6.18
	  	 Separate Lots
	  	94
			
	 Section 6.19
	  	 No Prior Assignment
	  	94
			
	 Section 6.20
	  	 Insurance
	  	95
			
	 Section 6.21
	  	 Use of Properties
	  	95
			
	 Section 6.22
	  	 Certificate of Occupancy; Licenses
	  	95

  

 -ii- 

					
			
	 Section 6.23
	  	 Physical Condition
	  	95
			
	 Section 6.24
	  	 Boundaries
	  	95
			
	 Section 6.25
	  	 Survey
	  	96
			
	 Section 6.26
	  	 Filing and Recording Taxes
	  	96
			
	 Section 6.27
	  	 Single Purpose Entity
	  	96
			
	 Section 6.28
	  	 Management Agreements
	  	97
			
	 Section 6.29
	  	 Franchise Agreements
	  	98
			
	 Section 6.30
	  	 Investment Company Act
	  	98
			
	 Section 6.31
	  	 Interest Rate Cap Agreement
	  	98
			
	 Section 6.32
	  	 Terrorism and Money Laundering
	  	99
		
	 ARTICLE VII FINANCIAL REPORTING
	  	100
			
	 Section 7.1
	  	 Financial Statements
	  	100
			
	 Section 7.2
	  	 Accounting Principles
	  	102
			
	 Section 7.3
	  	 Other Information; Access
	  	102
			
	 Section 7.4
	  	 Format of Delivery
	  	102
		
	 ARTICLE VIII COVENANTS
	  	102
			
	 Section 8.1
	  	 Due on Sale and Encumbrance; Transfers of Interests
	  	102
			
	 Section 8.2
	  	 Taxes; Charges
	  	104
			
	 Section 8.3
	  	 Control; Management
	  	105
			
	 Section 8.4
	  	 Operation; Maintenance; Inspection
	  	105
			
	 Section 8.5
	  	 Taxes on Security
	  	106
			
	 Section 8.6
	  	 Legal Existence; Name; Etc.
	  	106
			
	 Section 8.7
	  	 Affiliate Transactions
	  	106
			
	 Section 8.8
	  	 Further Assurances
	  	107
			
	 Section 8.9
	  	 Estoppel Certificates
	  	107
			
	 Section 8.10
	  	 Notice of Certain Events
	  	107
			
	 Section 8.11
	  	 Indemnification
	  	107
			
	 Section 8.12
	  	 Payment for Labor and Materials
	  	107
			
	 Section 8.13
	  	 Alterations
	  	108
			
	 Section 8.14
	  	 Handicapped Access
	  	108
		
	 ARTICLE IX EVENTS OF DEFAULT
	  	109
			
	 Section 9.1
	  	 Payments
	  	109
			
	 Section 9.2
	  	 Insurance
	  	109

  

 -iii- 

					
			
	 Section 9.3
	  	 Single Purpose Entity
	  	109
			
	 Section 9.4
	  	 Taxes
	  	109
			
	 Section 9.5
	  	 Sale, Encumbrance, Etc.
	  	109
			
	 Section 9.6
	  	 Representations and Warranties
	  	109
			
	 Section 9.7
	  	 Other Encumbrances
	  	109
			
	 Section 9.8
	  	 Involuntary Bankruptcy or Other Proceeding
	  	109
			
	 Section 9.9
	  	 Voluntary Petitions, Etc.
	  	110
			
	 Section 9.10
	  	 Budgets; Financial Statements
	  	110
			
	 Section 9.11
	  	 Interest Rate Cap Agreement
	  	110
			
	 Section 9.12
	  	 Default Under Other Agreements
	  	110
			
	 Section 9.13
	  	 Covenants
	  	110
		
	 ARTICLE X REMEDIES
	  	111
			
	 Section 10.1
	  	 Remedies - Insolvency Events
	  	111
			
	 Section 10.2
	  	 Remedies - Other Events
	  	111
			
	 Section 10.3
	  	 Lender’s Right to Perform the Obligations
	  	111
			
	 Section 10.4
	  	 Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets
	  	112
		
	 ARTICLE XI MISCELLANEOUS
	  	113
			
	 Section 11.1
	  	 Notices
	  	113
			
	 Section 11.2
	  	 Amendments, Waivers, Etc.
	  	114
			
	 Section 11.3
	  	 Limitation on Interest
	  	115
			
	 Section 11.4
	  	 Invalid Provisions
	  	116
			
	 Section 11.5
	  	 Reimbursement of Expenses
	  	116
			
	 Section 11.6
	  	 Approvals; Third Parties; Conditions
	  	117
			
	 Section 11.7
	  	 Lenders and Administrative Agent Not in Control; No Partnership
	  	117
			
	 Section 11.8
	  	 Time of the Essence
	  	118
			
	 Section 11.9
	  	 Successors and Assigns; Secondary Market Transactions
	  	118
			
	 Section 11.10
	  	 Renewal, Extension or Rearrangement
	  	120
			
	 Section 11.11
	  	 Waivers
	  	120
			
	 Section 11.12
	  	 Cumulative Rights
	  	120
			
	 Section 11.13
	  	 Exhibits and Schedules
	  	120
			
	 Section 11.14
	  	 Titles of Articles, Sections and Subsections
	  	120
			
	 Section 11.15
	  	 Promotional Material
	  	120

  

 -iv- 

					
			
	 Section 11.16
	  	 Survival
	  	121
			
	 Section 11.17
	  	 WAIVER OF JURY TRIAL
	  	121
			
	 Section 11.18
	  	 Waiver of Punitive or Consequential Damages
	  	121
			
	 Section 11.19
	  	 Governing Law
	  	121
			
	 Section 11.20
	  	 Entire Agreement
	  	123
			
	 Section 11.21
	  	 Counterparts
	  	123
			
	 Section 11.22
	  	 Assignments and Participations
	  	123
			
	 Section 11.23
	  	 Brokers and Financial Advisors
	  	124
			
	 Section 11.24
	  	 Servicer
	  	124
		
	 ARTICLE XII LIMITATIONS ON LIABILITY
	  	124
			
	 Section 12.1
	  	 Limitation on Liability
	  	124
			
	 Section 12.2
	  	 Limitation on Liability of the Administrative Agent’s and the Lenders’ Officers, Employees, etc.
	  	126
		
	 ARTICLE XIII THE ADMINISTRATIVE AGENT
	  	126
			
	 Section 13.1
	  	 Appointment, Powers and Immunities
	  	126
			
	 Section 13.2
	  	 Fees
	  	127
			
	 Section 13.3
	  	 Reliance by Administrative Agent
	  	128
			
	 Section 13.4
	  	 Defaults
	  	128
			
	 Section 13.5
	  	 Rights as a Lender
	  	128
			
	 Section 13.6
	  	 Standard of Care; Indemnification
	  	128
			
	 Section 13.7
	  	 Non-Reliance on Administrative Agent and Other Lenders
	  	129
			
	 Section 13.8
	  	 Failure to Act
	  	129
			
	 Section 13.9
	  	 Resignation of Administrative Agent
	  	130

  

 -v- 

					
	 LIST OF EXHIBITS AND SCHEDULES

	 EXHIBIT A
	 	 -
	  	 LEGAL DESCRIPTION OF PROPERTIES

	 EXHIBIT B-1
	 	 -
	  	 FORM OF SENIOR FLOATING NOTE

	 EXHIBIT B-2
	 	 -
	  	 FORM OF JUNIOR FLOATING NOTE

	 EXHIBIT C
	 	 -
	  	 FORM OF ASSIGNMENT AND ACCEPTANCE

	 EXHIBIT D
	 	 -
	  	 ORGANIZATIONAL CHART OF BORROWER

	 EXHIBIT E
	 	 -
	  	 ALLOCATED LOAN AMOUNTS AND PERCENTAGES

	 EXHIBIT F
	 	 -
	  	 CONDEMNATION AND POTENTIAL CONDEMNATIONS

	 EXHIBIT G
	 	 -
	  	 INTEREST RATE CAP AGREEMENT

	 EXHIBIT H
	 	 -
	  	 FORM OF DEPOSIT ACCOUNT CONTROL AGREEMENT

	 EXHIBIT I
	 	 -
	  	 FORM OF MONTHLY OPERATING STATEMENT

	 EXHIBIT J
	 	 -
	  	 FORM OF REMAINDER OF YEAR QUARTERLY REPORT

	 EXHIBIT K
	 	 -
	  	 FORM OF TRAILING 12-MONTH QUARTERLY REPORT

	 EXHIBIT L
	 	 -
	  	 FORM OF SMITH TRAVEL RESEARCH REPORT

	 EXHIBIT M
	 	 -
	  	 FORM OF CAPEX DRAW REQUEST

	 EXHIBIT N
	 	 -
	  	 FORM OF CAPEX DRAW SUMMARY

	 EXHIBIT O
	 	 -
	  	 FORM OF JOB COST REPORT – CAPEX

			
	 SCHEDULE 1
	 	 -
	  	 COMMITMENTS

	 SCHEDULE 2
	 	 -
	  	 CLOSING CONDITIONS

	 SCHEDULE 3
	 	 -
	  	 HOTEL ACCOMMODATIONS, ROOM NUMBERS AND TYPES, ETC.

	 SCHEDULE 4
	 	 -
	  	 INSURANCE CLAIMS

	 SCHEDULE 5
	 	 -
	  	 HOTEL OPERATING AGREEMENTS

	 	 	 	  	 5A- MANAGEMENT AGREEMENTS AND MANAGERS

	 	 	 	  	 5B- FRANCHISE AGREEMENTS

	 SCHEDULE 6
	 	 -
	  	 INITIAL APPROVED BUDGET

	 SCHEDULE 7
	 	 -
	  	 DEFERRED MAINTENANCE SCHEDULE

	 SCHEDULE 8
	 	 -
	  	 IMMEDIATE RELEASE PROPERTIES

	 SCHEDULE 9
	 	 -
	  	 CAPITAL EXPENDITURE RESERVES

	 SCHEDULE 10
	 	 -
	  	 GROUND LEASES

	 SCHEDULE 11
	 	 -
	  	 OPERATING LEASES, MATERIAL LEASES AND OTHER LEASES AFFECTING PROPERTIES

	 SCHEDULE 12
	 	 -
	  	 ENVIRONMENTAL MATTERS

	 SCHEDULE 13
	 	 -
	  	 ENTITIES FILING CONSOLIDATED TAX RETURNS

	 SCHEDULE 14
	 	 -
	  	 MECHANIC’S LIENS, ETC.

	 SCHEDULE 15
	 	 -
	  	 ILLUSTRATIONS OF CALCULATION OF ADMINISTRATIVE AGENT LOST SERVICING FEE

  

 -vi- 

 LOAN AGREEMENT 
  
 This Loan Agreement (this “Agreement”) is entered into as of August     ,
2003 among SUNSTONE LAX AIRPORT, LLC (“Sunstone LAX”), SUNSTONE SH HOTELS L.L.C. (“Sunstone SH”), SUNSTONE OP PROPERTIES L.L.C. (“Sunstone OP”), SHP OGDEN, LLC (“SHP
Ogden”), and Sunstone Chandler, LLC (“Sunstone Chandler”), each a Delaware limited liability company (each of Sunstone LAX, Sunstone SH, Sunstone OP, SHP Ogden and Sunstone Chandler being referred to herein as a
“Borrower” and, collectively, as the “Borrowers”); each of the senior lenders that is a signatory hereto identified under the caption “SENIOR LENDERS” on the signature pages hereof
together with any successor thereto as registered owner of all or any portion of such senior lender’s promissory note pursuant to the terms hereof (individually, a “Senior Lender” and, collectively, the
“Senior Lenders”); each of the junior lenders that is a signatory hereto identified under the caption “JUNIOR LENDERS” on the signature pages hereof together with any successor thereto as registered owner of
all or any portion of such junior lender’s promissory note pursuant to the terms hereof (individually, a “Junior Lender” and, collectively, the “Junior Lenders”; the Junior Lenders and the Senior
Lenders being referred to collectively herein as the “Lenders”); and MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, a corporation organized under the laws of the Commonwealth of Massachusetts, as administrative agent for the
Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”). 
  
 RECITALS 
  
 A. The Borrowers own certain hotels and related land and improvements and have applied to the Lenders for loans in an initial aggregate principal amount
of $345,000,000 and in the maximum aggregate amount of $399,500,000 which are secured, in part, by all of such assets; and 
  
 B. The Borrowers are affiliated with one another and each has agreed to be jointly and severally liable for the full amount of such Loans; and 

 
 C. Each of the Borrowers intends to use its allocated portion of the Loans
for its own purposes; and 
  
 D. The Senior Lenders desire to make
the Senior Floating Loans to the Borrowers upon the terms and conditions set forth in this Agreement; 
  
 E. The Junior Lenders desire to make the Junior Floating Loans to the Borrowers upon the terms and conditions set forth in this Agreement; 
  

 NOW, THEREFORE, in consideration of the covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged and agreed, the parties hereby agree to be bound as follows: 
  
 ARTICLE I 
  
 CERTAIN DEFINITIONS 
  
 Section 1.1 Certain Definitions. As used herein, the following terms have the meanings indicated: 
  
 (1) “Access Laws” has the meaning assigned in Section 8.14(a). 
  
 (2) “ACH” has the meaning assigned
in Section 2.5(1)(a). 
  
 (3)
“Additional Costs” has the meaning assigned in Section 2.6(1)(a). 
  
 (4) “Adjusted Libor Rate” means, for any Interest Period for any Floating Loan, a rate per annum (rounded upwards,
if necessary, to the nearest 1/10 of 1%) determined by the Administrative Agent to be equal to the Libor Base Rate for such Interest Period divided by 1 minus the Reserve Requirement (if any) for such Interest Period. 
  
 (5) “Administrative Agent” has the
meaning assigned in the introductory paragraph on page one of this Agreement. 
  
 (6) “Administrative Agent Lost Servicing Fee” means, with respect to any prepayment of the Loans during the first twelve (12) Loan Months, whether in part or in full, whether voluntarily made
by any Borrower or made as a result of an acceleration of the Loans by the Administrative Agent on behalf of the Lenders following the occurrence of an Event of Default, or otherwise, other than a prepayment made by any Borrower in connection with
the sale of an Immediate Release Property pursuant to Section 2.7(1) of this Agreement or pursuant to Section 3.3(3) in the event Net Proceeds are not made available for the Restoration of an Individual Property: 
  
 (a) for any such prepayment made during the first twelve
(12) Loan Months, if the Cumulative Prepayment Amount (including the Allocated Loan Amount then being prepaid) is equal to or less than $50,000,000, no Administrative Agent Lost Servicing Fee shall become due or payable; 
  
 (b) for any such prepayment made during the first three (3)
Loan Months, if the Cumulative Prepayment Amount (including the Allocated Loan Amount then being prepaid), is greater than $50,000,000, zero and one-fourth percent (.25%) of the sum of (i) the amount being prepaid plus (ii) sum of all other previous
principal prepayments made (other than prepayments made by any Borrower in connection with the sale of an Immediate Release Property pursuant to Section 2.7(1) of this Agreement or pursuant to Section 3.3(3) in the event Net Proceeds
are not made available for the Restoration of an Individual Property); provided that the Borrower shall receive a credit against such amount for any Administrative Agent Lost Servicing Fees previously paid; 
  
 (c) if the Cumulative Prepayment Amount during the first
three (3) Loan Months exceeded $50,000,000, for any such prepayments made during the period commencing 

  

 -2- 

 
with the first day of the fourth (4th) Loan Month and ending at the expiration of the twelfth (12th) Loan Month, zero and two-tenths percent (.20%) of the
amount being prepaid; 
  
 (d) if the Cumulative
Prepayment Amount during the first three (3) Loan Months was less than or equal to $50,000,000, for any such prepayment made during the period commencing with the fourth (4th) Loan Month and ending at the expiration of the twelfth (12th) Loan Month,
if the Cumulative Prepayment Amount (including the Allocated Loan Amount then being prepaid), is greater than $50,000,000, zero and two-tenths percent (.20%) of the sum of (i) the amount being prepaid plus (ii) sum of all other previous principal
prepayments made (other than prepayments made by any Borrower in connection with the sale of an Immediate Release Property pursuant to Section 2.7(1) of this Agreement or pursuant to Section 3.3(3) in the event Net Proceeds are not
made available for the Restoration of an Individual Property); provided that the Borrower shall receive a credit against such amount for any Administrative Agent Lost Servicing Fees previously paid; and 
  
 (e) for any such prepayment made at any time after the
expiration of the twelfth (12th) Loan Month, no Administrative Agent Lost Servicing Fee shall become due or payable. 
  
 The foregoing provisions are illustrated by the chart and examples set forth on Schedule 15 attached hereto and made a part hereof, which are
provided for reference only. In the event of any conflict or ambiguity between the foregoing provisions and such chart or examples, the foregoing provisions shall control in all respects. 
  
 (7) “Administrative Agent Servicing
Fee” means the fee payable on each Payment Date by the Borrowers to the Administrative Agent in accordance with the terms of Sections 2.3(1)(c) and 13.2 of this Agreement. 
  
 (8) “Affiliate” means (a) any
corporation in which any Borrower Party or any Person that directly or indirectly owns a beneficial interest in any Borrower Party, directly or indirectly owns or Controls more than ten percent (10%) of the beneficial interest of such corporation,
(b) any partnership, joint venture or limited liability company in which any Borrower Party, or any Person that directly or indirectly owns a beneficial interest in any Borrower Party, is a partner, joint venturer or member, (c) any trust in which
any Borrower Party, or any Person that directly or indirectly owns a beneficial interest in any Borrower Party, is a trustee or beneficiary, (d) any other Person which directly or indirectly Controls any Borrower Party, (e) any partner, shareholder,
director, officer, member, manager or employee of any Borrower Party, or any Person that directly or indirectly owns a beneficial interest in any Borrower Party, or (f) any Person related by birth, adoption or marriage to any partner, shareholder,
director, officer, member, manager, or employee of any Borrower Party, or any Person that directly or indirectly owns a beneficial interest in any Borrower Party. 
  
 (9) “Agreement” means this Loan Agreement, as amended from time to time. 

 
 (10) “Allocated Loan Amount”
means, for each Individual Property (a) as of the Closing Date, the amount set forth on Exhibit E and (b) after a Release, Earnout Advance or other prepayment, the revised amount calculated in accordance with Section 2.7(4)(a),
Section 

  

 -3- 

 
2.9(2), Section 2.10(2), or Section 2.3(3)(c)(ii), as applicable. The sum of the Allocated Loan Amounts for all of the Properties shall
at all times equal the aggregate principal amount advanced by Lenders and outstanding under the Loans. 
  
 (11) “Allocated Percentage” means, for each Individual Property (a) as of the Closing Date, the percentage set
forth on Exhibit E and (b) after a Release, Earnout Advance or other prepayment, the revised percentage calculated in accordance with Section 2.7(4)(a), Section 2.9(2) or Section 2.10(2), as applicable. The sum of the
Allocated Percentages for all of the Properties shall at all times equal one hundred percent (100%). 
  
 (12) “Alternate Interest Rate” means, for any Interest Period and for any Type of Notes, a rate per annum equal to
the sum of the Prime Rate plus the Prime Rate Spread applicable to such Type of Notes. 
  
 (13) “Alternate Interest Rate Loans” means Loans that bear interest at the Alternate Interest Rate applicable to
such Type of Loans, if any. 
  
 (14)
“Annual Budget” has the meaning assigned in Section 5.3(2). 
  
 (15) “Applicable Lending Office” means, for each Lender, the “Lending Office” of such Lender (or of an
affiliate of such Lender) designated on the respective signature pages hereof or such other office of such Lender (or of an affiliate of such Lender) as such Lender may from time to time specify to the Administrative Agent and the Borrowers as the
office by which its Loans are to be made and maintained, which shall at all times be maintained in the United States. 
  
 (16) “Appraisal Event” has the meaning assigned in Section 13.3. 
  
 (17) “Appraised Value” means with
respect to any Individual Property at any time, the value of such Individual Property, as most recently determined by an appraisal, reasonably acceptable to the Administrative Agent in form and substance, and prepared by an appraiser holding the MAI
designation that is reasonably acceptable to the Administrative Agent, which appraised value shall be calculated using methodology consistent with that set forth in the appraisal delivered in connection with the funding of the Loans. Such appraisers
and appraisals shall satisfy the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Foundation. 
  

(18) “Approved Budget” means (a) if no Cash Trap Period exists at the time of delivery of the Annual Budget to
the Administrative Agent pursuant to the Section 5.3(2), the Annual Budget prepared by the Borrowers or (ii) if a Cash Trap Period exists at the time of delivery of the Annual Budget to the Administrative Agent pursuant to the Section
5.3(2), the annual budget approved by the Administrative Agent pursuant to Section 5.3(3). 
  
 (19) “Approved Financial Institution” means a financial institution reasonably selected by or approved by the
Administrative Agent. 
  
 (20)
“Approved Franchise Agreements” means those agreements specified on Schedule 5B. 
  

 -4- 

 (21) “Assignment and Acceptance” means an Assignment and
Acceptance, duly executed by the parties thereto, in substantially the form of Exhibit C hereto and consented to by the Administrative Agent in accordance with Section 2.1(3)(d). 
  
 (22) “Assignments of Leases and
Rents” means each of those certain Assignments of Leases and Rents, dated the date hereof, by each Borrower and Operator in favor of the Administrative Agent (on behalf of the Lenders). 
  
 (23) “Assignments of Licenses” means
each of those certain Assignments of Licenses, Permits and Approvals and Contracts, Agreements and Equipment Leases, dated the date hereof, by each Borrower, each Operator and Manager in favor of the Administrative Agent (on behalf of the Lenders).

  
 (24) “Award” has the
meaning assigned in Section 3.2. 
  
 (25)
“Bankruptcy Party” has the meaning assigned in Section 9.8. 
  
 (26) “Basel Accord” means the proposals for risk-based capital framework described by the 1988 “International
Convergence of Capital Measurement and Capital Standards,” Basel Committee Publications No. 4 (Basel I Capital Accord), as amended, modified and supplemented and in effect from time to time, or any applicable law, rule, regulation, policy,
statement or recommendation (whether or not having the force of law) as a direct or indirect consequence of, in connection with or with a view to the matters discussed in relation to the change, amendment and/or replacement of the foregoing
agreement. 
  
 (27) “Books and
Records” has the meaning assigned in Section 5.4(1). 
  
 (28) “Borrower” has the meaning assigned in the introductory paragraph on page one of this Agreement and is
subject to the rules of interpretation set forth in Section 1.3 hereof. 
  
 (29) “Borrower Party” means each of the Borrowers; Sunstone; Sunstone Hotel Properties, Inc.; Sunstone Hotels,
LLC; Sunstone Hotels Sub. Corp.; Sunstone Properties Sub Corp.; WTA 99 L.L.C.; San Clemente Hotel Properties L.L.C.; SHP Properties Corp.; SHP Investors, Inc.; Sunstone Hotel Investors, L.P.; SHP Ogden Inc.; Sunstone Hotels Sub L.L.C.; Sunstone SH
Hotels Corp.; Sunstone Properties Sub L.L.C.; Sunstone OP Properties Corp.; Alter SHP, LLC; SHP Lessee Corp.; SHP Lessee II Corp.; SHP Lessee III Corp.; and any of their respective successors or permitted assigns from time to time. 
  
 (30) “Business Day” means a day
other than (a) a Saturday, a Sunday, or a legal holiday on which national banks located in the State of New York or the Commonwealth of Massachusetts are not open for general banking business and (b) if such day relates to a borrowing of, a payment
or prepayment of principal of or interest on, a Conversion of or into, or an Interest Period for, a Floating Loan, a day on which dealings in Dollar deposits are not carried out in the London interbank market. 
  
 (31) “Business Plan” has the meaning
assigned in Section 5.3(l)(c). 
  

 -5- 

 (32) “Capital Budget” has the meaning assigned in Section
5.3(1)(b). 
  
 (33) “Capital
Expenditure Reserve” has the meaning assigned in Section 5.8(2). 
  
 (34) “Capital Improvement” has the meaning assigned in Section 5.9(3)(a). 
  
 (35) “Capital Lease” means each of
those certain leases designated as “Capital Leases” on Schedule 11 hereto with respect to the Properties and any other leases that would be deemed “capital leases” pursuant to GAAP or the Uniform System of Accounts.

  
 (36) “Cash Trap
Period” means a period commencing when DSCR is less than Minimum DSCR and continuing until (a) DSCR has equaled or exceeded Minimum DSCR for six (6) consecutive Loan Months and (b) no Event of Default (or event or condition which with
the giving of notice or the passage of time would constitute an Event of Default) exists at the conclusion of such period of six (6) consecutive Loan Months. 
  

(37) “Casualty Consultant” has the meaning assigned in Section 3.3(2)(iii). 
  
 (38) “Casualty Retainage” has the
meaning assigned in Section 3.3(2)(iv). 
  
 (39) “Closing Date” means the date the initial advance of the Loans is funded by the Lenders. 
  
 (40) “Code” means the Internal Revenue Code of 1986, as amended, and as it may be further amended from time to
time, any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 
  
 (41) “Collateral Assignment of Interest Rate Cap Agreement” means that certain Collateral Assignment of Interest
Rate Cap Agreement, dated the date hereof, among the Borrowers and the Administrative Agent (on behalf of the Lenders). 
  
 (42) “Commercially Reasonable Rates” has the meaning assigned in Section 3.1(1)(k). 
  
 (43) “Commitment” means, as to each
Lender, the obligation of such Lender to make a Loan in a principal amount up to but not exceeding the amount set opposite the name of such Lender on Schedule 1 under the caption “Commitment” or, in the case of a Person that becomes
a Lender pursuant to an assignment permitted under Section 11.22, as specified in the respective instrument of assignment pursuant to which such assignment is effected. The original aggregate principal amount of the Commitments of the date
hereof is $345,000,000.00, which shall be subject to increase (up to a maximum aggregate principal amount of $399,500,000) pursuant to the provisions of Section 2.9 or Section 2.10. The Commitment of one or more Lenders is subject to
change pursuant to the provisions of Section 2.9(3) in the event any Lender fails to advance its proportionate share of an Earnout Advance. 
  
 (44) “Concentration Account” has the meaning assigned in Section 5.7(2). 
  

 -6- 

 (45) “Condemnation” has the meaning assigned in Section
3.2. 
  
 (46) “Condemnation
Limit” means, with respect to any Individual Property, the lesser of (a) $500,000 or (b) the amount equal to ten percent (10%) of the Allocated Loan Amount of such Individual Property. 
  
 (47) “Condemnation Proceeds” has the
meaning assigned in Section 3.3(2). 
  
 (48) “Continue”, “Continuation” and “Continued” refer to the continuation pursuant to Section 2.2 of a Floating Loan from one Interest Period to the next
Interest Period for such Loan. 
  
 (49)
“Control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms “Controlling” or “Controlled” have meanings correlative to the foregoing. 
  
 (50) “Controlling Lenders” means (a) prior to an Event of Default and acceleration of the Loans, collectively (i)
the Senior Lenders holding at least 66 2/3% of the aggregate outstanding principal amount of the Senior Loans and (ii) the Junior Lenders holding at least 66 2/3% of the aggregate outstanding principal amount of the Junior Loans, and (b) after an
Event of Default and the acceleration of the Loans, (i) so long as an Appraisal Event has not occurred, the Junior Lenders holding at least 66 2/3% of the aggregate outstanding principal amount of the Junior Loans, and (ii) upon the occurrence of an
Appraisal Event, the Senior Lenders holding at least 66 2/3% of the aggregate outstanding principal amount of the Senior Loans. 
  
 (51) “Convert”, “Conversion” and “Converted” refer to a conversion
pursuant to the terms of this Agreement of one Type of Loans into another Type of Loans, to the extent applicable. 
  
 (52) “Cumulative Prepayment Amount” means the sum of the Allocated Loan Amounts prepaid by the Borrowers, whether
voluntarily, by acceleration following the occurrence of an Event of Default or otherwise; provided, however, prepayments made by any Borrower in connection with the sale of an Immediate Release Property pursuant to Section 2.7(1) of this
Agreement or pursuant to Section 3.3(3) in the event Net Proceeds are not made available for the Restoration of an Individual Property shall not be included in the calculation of the Cumulative Prepayment Amount. 
  
 (53) “Debt” means, as to the
relevant Person, without duplication: (a) all indebtedness of such Person for borrowed money, for amounts drawn under a letter of credit, or for the deferred purchase price of property for which such Person or its assets is liable, (b) all unfunded
amounts under a loan agreement, letter of credit, or other credit facility for which such Person would be liable, if such amounts were advanced under the credit facility, (c) all indebtedness guaranteed by such Person, directly or indirectly, (d)
all obligations under leases that constitute capital leases for which such Person is liable, and (e) all obligations of such Person under interest rate swaps, caps, floors, collars and other interest hedge agreements, in each case whether such
Person is liable contingently or otherwise, as obligor, guarantor or 

  

 -7- 

 
otherwise, or in respect of which obligations such Person otherwise assures a creditor against loss. 
  
 (54) “Debt Service” means, as of any
date of calculation, the aggregate payments of interest and, if applicable, principal due under the Loans for the period in question. 
  
 (55) “Default Rate” means the lesser of (a) the maximum rate of interest allowed by applicable law and (b) five
percent (5%) per annum in excess of (i) with respect to Floating Loans, the applicable Floating Interest Rate and (ii) with respect to Alternate Interest Rate Loans, if any, the Alternate Interest Rate. 
  
 (56) “Deferred Maintenance Reserve”
has the meaning assigned in Section 5.8(4). 
  
 (57) “Delevering Prepayment” means a prepayment of the Loans made by the Borrowers in accordance with the terms and conditions of Section 2.3(3)(b)(iii) of this Agreement in an amount sufficient to reduce the
outstanding principal balance of the Loans to an amount that results in a Loan-to-Value Ratio of fifty percent (50%), as calculated by the Administrative Agent, on behalf of the Lenders. 
  
 (58) “Delevering Prepayment Fee” means, with respect to any Delevering Prepayment of
the Loans made by the Borrowers in accordance with the terms and conditions of Section 2.3(3)(b)(iii) of this Agreement, the following percentages of the principal amount prepaid during the Loan Months listed below: 
  

			
	 Loan Months:

	 	 Percentage:

	 1-12
	 	  2.0%
	 13-24
	 	  1.5%
	 25-36
	 	1.25%
	 37-42
	 	  1.0%
	 43-Maturity Date
	 	0.50%

  
 (59)
“Deposit Account Control Agreement” means an agreement substantially in the form of Exhibit H among the applicable Borrowers (or Operators), the Administrative Agent and the applicable Approved Financial Institution
which shall obligate said Approved Financial Institution to allow only the Administrative Agent to make withdrawals therefrom following said Approved Financial Institution’s receipt of notice from the Administrative Agent that an Event of
Default has occurred hereunder. 
  
 (60)
“Depository Account” means a depository account with an Approved Financial Institution approved by the Administrative Agent and maintained in the names of the applicable Borrowers (or Operators) and the Administrative Agent,
and which shall be subject to a Deposit Account Control Agreement. Each Operating Account and the Concentration Account shall be a Depository Account. 
  
 (61) “Dollars” and “$” means lawful money of the United States of America. 
  

 -8- 

 (62) “DSCR” means, as of any date of calculation, the ratio of
(a) the Trailing Twelve-Month NOI for all of the Properties then remaining as collateral for the Loans to (b) the anticipated Debt Service for the twelve-month period immediately succeeding such date of calculation, assuming that the Floating
Interest Rate then in effect shall remain in effect for such succeeding twelve-month period, provided, however, that if the Floating Interest Rate is greater than the strike rate of the Interest Rate Cap then in effect, the strike rate shall be used
to calculate the anticipated Debt Service. The calculation of DSCR shall not include any Net Operating Income or Debt Service attributable to any Individual Property that was included as collateral for the Loans for all or any portion of the
twelve-month period in question but was released from the lien of the Mortgages prior to the date of such calculation. 
  
 (63) “Earnout Advance” means any Standard Earnout Advance or Special Earnout Advance. 
  
 (64) “Environmental Laws” has the
meaning assigned in Section 4.1(1). 
  
 (65) “ERISA” has the meaning assigned in Section 6.10(1). 
  
 (66) “Event of Default” has the meaning assigned in Article 9. 
  
 (67) “Exchange Act” means the
Securities Exchange Act of 1934, as amended. 
  
 (68) “Extension Fee” has the meaning assigned in Section 2.8(3)(d). 
  
 (69) “Extension Right” has the meaning assigned in Section 2.8(1). 
  
 (70) “FF&E” means all furnaces,
boilers, machinery, motors, compressors, elevators, fittings, piping, conduits, ducts, air conditioners, partitions, mechanical, electrical and HVAC systems and apparatus of every kind and all other fixtures, equipment and other personality owned by
any Borrower or any Operator and located on, attached, affixed or incorporated into any Individual Property including, without limitation, all seating, tables, beds, draperies, cabinetry, chairs, mirrors, nightstands, furniture, furniture
accessories, bathroom accessories, floor coverings, curtains, lighting, appliances, lighting fixtures, tableware, table accessories, kitchen and laundry equipment, audio-visual equipment, wall decorations, office furniture, office and conference
accessories, television wiring and jacks, and other miscellaneous furniture, fixtures and equipment now or hereafter located at or on any Individual Property and used in the operation of the Improvements, including, without limitation, all
replacements thereof. 
  
 (71) “Fifty
Percent Rate” has the meaning assigned in Section 3.1(1)(k). 
  
 (72) “Fiscal Year” means, with respect to any Person, the twelve-month fiscal period in which such Person keeps
its books, records and accounts. 
  
 (73)
“Fitch” means Fitch, Inc. and any successor thereto. 
  
 (74) “Floating Interest Rate” means the Senior Floating Interest Rate or the Junior Floating Interest Rate, as applicable. 
  

 -9- 

 (75) “Floating Loan Amount” means the sum of the Junior Floating
Loan Amount and the Senior Floating Loan Amount. As of the Closing Date, the Floating Loan Amount is $345,000,000. The Floating Loan Amount is subject to increase (up to an aggregate amount of $399,500,000) during the term hereof pursuant to the
provisions of Section 2.9 or Section 2.10. 
  
 (76) “Floating Loans” means the Senior Floating Loans and the Junior Floating Loans. 
  
 (77) “Floating Notes” means the Senior Floating Notes and the Junior Floating Notes. 
  
 (78) “Franchise Agreement”
means each of those certain franchise agreements specified on Schedule 5B hereto. 
  
 (79) “Franchisor Warning Event” means the receipt by the Administrative Agent of written notice from a franchisor
under a Franchise Agreement that an Individual Property is not being maintained in accordance with the requirements of such Franchise Agreement or that a default by the franchisee otherwise exists under the terms of such Franchise Agreement.

  
 (80) “Funds Release
Limit” means, with respect to any Individual Property, the lesser of (a) $500,000 or (b) the amount equal to five percent (5%) of the Allocated Loan Amount of such Individual Property. 
  
 (81) “GAAP” has the meaning assigned
in Section 7.2. 
  
 (82)
“Ground Lease Rent Reserve” has the meaning assigned in Section 5.8(3). 
  
 (83) “Hazardous Materials” has the meaning assigned in Section 4.1(2). 
  
 (84) “Hazardous Materials Indemnity
Agreement” means that certain Hazardous Materials Indemnity Agreement dated the date hereof, executed by Sunstone and each Borrower for the benefit of the Administrative Agent (on behalf of the Lenders). 
  
 (85) “Immediate Release”
means a Release of an Immediate Release Property carried out in compliance with the terms of Section 2.7(1). 
  
 (86) “Immediate Release Property” means each of the Individual Properties specified on Schedule 8.

  
 (87) “Improvements”
has the meaning assigned to such term in the related Mortgage with respect to each Individual Property. 
  
 (88) “Indebtedness” has the meaning assigned to such term in the related Mortgage with respect to each Individual
Property. 
  

 -10- 

 (89) “Individual Property” means a piece or parcel of real
property and the improvements thereon owned by a Borrower and encumbered by a Mortgage, together with all rights pertaining to such property and improvements, as more particularly described in the granting clauses of each such Mortgage and referred
to therein as the “Mortgaged Property”, unless released pursuant to Section 2.7 hereof. 
  
 (90) “Initial Interest Rate Cap Agreement” has the meaning assigned in Section 6.31. 
  
 (91) “Institutional Investors” means
each of the following Persons which, in the reasonable judgment of the Administrative Agent is a reputable institutional investor with substantial experience in real estate lending and originating or investing in mortgage loans similar to the Loans,
and (together with its affiliates) has assets of at least $500,000,000 including (i) any bank, trust company or national banking association, acting for its own account or in a fiduciary capacity, (ii) any insurance company, (iii) any pension,
endowment or retirement fund, (iv) any investment company or mutual fund, (v) any government, any public employees’ pension or retirement system or any other government agency supervising the investment of public funds, or (vi) any “real
estate investment trust” as defined in Section 856 of the Code. 
  
 (92) “Insurance Premiums” has the meaning assigned in Section 3.1(2). 
  
 (93) “Insurance Proceeds” has the meaning assigned in Section 3.3(2). 
  
 (94) “Interest Period” means (i) the
initial period commencing on and including the Closing Date to and including August 31, 2003, and (ii) thereafter, the one, three, or six month period selected at the end of the immediately preceding Interest Period by Borrower in accordance with
Section 2.1(3); provided, however, that each such Interest Period shall commence on the date such Floating Rate Loan is made or Converted from a Loan of another Type, or, in the event of a Continuation, the last day of the next preceding
Interest Period, and shall end on the first Business Day of the next Interest Period, and, provided further that, if any such Interest Period would otherwise end after the Maturity Date, such Floating Rate Loan shall end on the Maturity Date. Except
as expressly provided in Section 2.2(2) with respect to the initial Interest Period for an Earnout Advance, in no event may Borrower have more than one Interest Period in respect of Floating Rate Loans from all Lenders outstanding at any one
time and to the extent any Floating Rate Loan does not qualify for such Interest Period pursuant to the terms of this Agreement, such Floating Rate Loan shall bear interest at the Alternative Interest Rate. 
  
 (95) “Interest Rate” means the
applicable Floating Interest Rate or the Alternate Interest Rate, in each case as applicable. 
  
 (96) “Interest Rate Cap Agreement” means the Initial Interest Rate Cap Agreement and each Replacement Interest
Rate Cap Agreement meeting the criteria set forth in Section 6.31. 
  
 (97) “Junior Floating Interest Rate” has the meaning assigned in Section 2.2(1)(b). 
  

 -11- 

 (98) “Junior Floating Loan Amount” means, as of the Closing Date,
$            . The Junior Floating Loan Amount is subject to increase (up to an aggregate amount of $            )
during the term hereof pursuant to the provisions of Section 2.9 or Section 2.10. 
  
 (99) “Junior Floating Loans” means Loans that bear interest at the Junior Floating Interest Rate. 
  
 (100) “Junior Floating Notes” means
the promissory notes evidencing the Junior Floating Loans of even date herewith substantially in the form of Exhibit B-2 hereto and all promissory notes delivered in substitution or exchange therefor, in each case as the same may be modified,
Converted, amended or expended from time to time. 
  
 (101) “Junior Lender” and “Junior Lenders” have the meanings assigned, respectively, in the introductory paragraph on page one of this Agreement. 
  
 (102) “Leases” means all leases
(including the Operating Leases and the Capital Leases), subleases, occupancy agreements, licenses, concessions, rental contracts and other agreements (written or oral) now or hereafter existing relating (i) to any personal property utilized in
connection with the operation of any Individual Property or (ii) the use or occupancy of any Improvements located on any Individual Property, together with all guarantees, letters of credit and other credit support, modifications, extensions and
renewals thereof, whether before or after the filing by or against a Borrower of any petition of relief under 11 U.S.C. § 101 et. seq., and all related security and other deposits. All of the Leases as of the date hereof are specified on
Schedule 11 attached hereto. 
  
 (103)
“Legal Requirements” means, with respect to each Individual Property, federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of
governmental authorities affecting such Individual Property or any part thereof or the construction, use, alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force, and all permits, licenses and
authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments, either of record or known to any Borrower, at any time in force affecting such Individual Property or any
part thereof, including, without limitation, any which may (a) require repairs, modifications or alterations in or to such Individual Property or any part thereof, or (b) any way limit the use and enjoyment thereof. 
  
 (104) “Lender” and
“Lenders” have the meanings assigned, respectively, in the introductory paragraph on page one of this Agreement. 
  
 (105) “Libor Base Rate” means, for any Interest Period for any Floating Loan, the Dollar rate (rounded upward to
the nearest one sixteenth (1/10) of one percent) per annum appearing on Page 3750 (i.e., the LIBOR page) of the Dow Jones Markets (Telerate) Service (or on any successor or substitute page of such Service) at approximately 11:00 a.m. London time on
the date two Business Days prior to the first day of such Interest Period as the rate for the offering of Dollar deposits having a term closest in duration to such Interest Period, provided that (i) if such rate does not appear on such page, or if
such page shall cease to be publicly available, 

  

 -12- 

 
or if the information contained on such page, in the reasonable judgment of the Administrative Agent shall cease accurately to reflect the rate offered by
leading banks in the London interbank market as reported by any publicly available source of similar market data selected by the Administrative Agent, the Libor Base Rate for such Interest Period shall be determined from such substitute financial
reporting service as the Administrative Agent in its reasonable discretion shall determine and (ii) if the Dow Jones Markets (Telerate Service) publishes more than one such rate, the average of such rates shall apply. 
  
 (106) “Libor Breakage Fee” for each
Type of Floating Loans means the following, discounted to present value at the Libor Base Rate: 
  

					
	 	  	((R-T) x P) x D,	  	 
	 	  	(360)      	  	 

  
 Where: 
  

			
	 1.
	  	R = The Floating Interest Rate for the applicable Type of Floating
	 	  	Loans on the prepayment date
	 2.
	  	T = Libor Base Rate
	 3.
	  	P = The outstanding principal amount of the applicable Type of
	 	  	Floating Loans on the prepayment date
	 4.
	  	D = Number of days remaining in the Interest Rate Period

  
 (107)
“Licenses” has the meaning assigned in Section 6.22. 
  
 (108) “Lien” means any interest, or claim thereof, in any Individual Property securing an obligation owed to, or a
claim by, any Person other than the owner of the Individual Property, whether such interest is based on common law, statute or contract, including the lien or security interest arising from a deed of trust, mortgage, assignment, encumbrance, pledge,
security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes. The term “Lien” shall include reservations, exceptions, encroachments, easements, rights of way, covenants, conditions,
restrictions, leases and other title exceptions and encumbrances affecting an Individual Property. 
  
 (109) “Limited Guaranty” means that certain Limited Guaranty and Indemnity Agreement, dated the date hereof, by
Sunstone in favor of the Administrative Agent (on behalf of the Lenders). 
  
 (110) “Loan Documents” means: (a) this Agreement, (b) the Notes, (c) the Mortgages, (d) the Assignments of Leases and Rents, (e) the Assignments of Licenses, (f) the Security Agreements, (g)
the Limited Guaranty, (h) the Hazardous Materials Indemnity Agreement, (i) the Subordination of Management Agreements, (j) the Stock Pledge, (k) the Membership Pledges, (1) the Uniform Commercial Code Financing Statements naming any of the Borrowers
or Operators as debtor and the Administrative Agent as secured party, (m) the Interest Rate Cap Agreement, (n) the Collateral Assignment of Interest Rate Cap Agreement and any collateral assignment of interest rate cap agreement hereafter executed
by the Borrowers in favor of the Administrative Agent, (o) the Multi-Party Agreement, and (p) all other documents now or hereafter executed by any of the Borrowers, Operators or Manager or any other Person to evidence or secure the payment of the
Indebtedness or the performance of the Borrowers or 

  

 -13- 

 
otherwise executed by a Person affiliated with any of the Borrowers in connection with this Agreement, the Notes, or the Mortgages, and (p) all amendments,
modifications, restatements, extensions, renewals and replacements of the foregoing. 
  
 (111) “Loan Month” means any full calendar month during the term of this Agreement, with the first Loan Month
being September, 2003 and the 13th Loan Month being September, 2004. The first Loan Month shall be deemed to include the partial month commencing on the date of this Agreement. 
  
 (112) “Loan-to-Value Ratio” means, as of the date such calculation is being made, a
percentage represented by a fraction, the numerator of which is the outstanding principal balance of the Loans and the denominator of which is the quotient obtained by dividing the Trailing Twelve Month NOI as of such date by ten and one-half
percent (10.5%). The Loan-to-Value Ratio shall be calculated by the Administrative Agent on behalf of the Lenders. 
  
 (113) “Loan Year” means the period between the date hereof and August 31, 2004 for the first Loan Year and the
period between each succeeding September 1 and August 31 until the Maturity Date. 
  
 (114) “Loans” means the Floating Loans and the Alternate Interest Rate Loans, if any. 
  
 (115) “Losses” means all claims,
suits, liabilities (including without limitation, strict liabilities), actions, proceedings, obligations, debts, damages, losses, costs, fines, penalties, charges, fees, expenses, judgments, awards, amounts paid in settlement, punitive damages,
foreseeable and unforeseeable consequential damages of whatever kind or nature (including but not limited to reasonable out-of-pocket attorneys’ fees, costs and expenses). 
  
 (116) “Management Agreement” means each of those certain management and operation
agreements specified on Schedule 5A hereto. 
  
 (117) “Manager” means Sunstone Hotel Properties, Inc., a Colorado corporation, and its successors and permitted assigns. 
  
 (118) “Material Capital Lease” means any Capital Lease with annual rent in excess of $10,000. 
  
 (119) “Material Lease” means (a) any
Lease of any portion of an Individual Property with annual rent in excess of $10,000 where the premises leased thereunder are used or intended to be used as a restaurant, cafeteria or other food service or beverage establishment, (b) any Lease of
any portion of an Individual Property under which the total rent payable by the tenant (including base rent, percentage rent and any other incremental rent components) accounts for more than five percent (5%) of the total Operating Revenues of the
Individual Property affected by such Lease, (c) any Operating Lease, or (d) any other Lease which is identified as a “Material Lease” as of the date hereof on Schedule 11 attached hereto. 
  
 (120) “Maturity Date” means (a)
September 1, 2007, (b) September 1, 2008 if the Loans have been extended pursuant to the provisions of Section 2.8, or (c) any earlier date on 

  

 -14- 

 
which all of the Loans are required to be paid in full, by acceleration or otherwise, under this Agreement or any of the other Loan Documents. 
  
 (121) “Maximum Loan to Value Ratio”
means seventy-five percent (75%) during the first two Loan Years, seventy percent (70%) during the third Loan Year, and sixty-eight percent (68%) from the first day of the fourth Loan Year to the Maturity Date. 
  
 (122) “Membership Pledge”
means each of those certain Membership Interest Pledge and Security Agreements (together with the attachments thereto and consents, certificates, powers and other materials referred to therein), dated the date hereof, relating to the pledges of
membership interests to the Administrative Agent (on behalf of the Lenders) from (a) Sunstone Hotels, LLC as pledgor regarding its pledge of equity interest in Sunstone LAX Airport, LLC, (b) Sunstone Hotels Sub L.L.C. and Sunstone SH Hotels Corp. as
pledgors regarding their pledges of equity interests in Sunstone SH Hotels L.L.C, (c) Sunstone Properties Sub L.L.C. and Sunstone OP Properties Corp. as pledgors regarding their pledges of equity interests in Sunstone OP Properties L.L.C., (d)
Sunstone Hotel Investors, L.P. as pledgor regarding its pledge of equity interest in Sunstone Chandler, LLC and (e) SHP Ogden Inc. and Sunstone Hotel Investors, LLC regarding their pledges of equity interests in SHP Ogden, LLC. 
  
 (123) “Minimum DSCR” means a ratio
of 1.40 to 1.00. 
  
 (124) “Monthly
Operating Statement” has the meaning assigned in Section 7.1(2). 
  
 (125) “Moody’s” means Moody’s Investor Services, Inc. and any successor thereto. 
  
 (126) “Mortgage” means with respect
to each Individual Property, the Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, the Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, or the Leasehold Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Fixture Filing, as applicable, each dated the date hereof and executed by each of the Borrowers in favor of the Administrative Agent (on behalf of the Lenders), covering such Individual Property and any
amendments, modifications, renewals, substitutions or replacements thereof. “Mortgages” means all of the Mortgages on all of the Properties listed in Schedule A hereto, which Mortgages secure the Loans on a
cross-defaulted, cross-collateralized basis. 
  
 (127) “Multi-Party Agreement” means that certain Multi-Party Agreement, dated the date hereof, among the Borrowers, the Operators, the Manager and the Administrative Agent. 
  
 (128) “Net Cash Flow” means, with
respect to any specified period, the positive difference, if any of (a) the aggregate of the Net Operating Income for all Individual Properties for such period minus (b) Debt Service for such period. 
  
 (129) “Net Operating Income” means,
as of any date of calculation and for each Individual Property then serving as collateral for the Loans, an amount calculated as the excess, if any, of (a) the Operating Revenues of such Individual Property over (b) the sum of (i) 

  

 -15- 

 
the Operating Expenses of such Individual Property plus (ii) the amount required to be set aside as the reserve percentage of Operating Revenues of such
Individual Property pursuant to Section 5.8(2). 
  
 (130) “Net Proceeds” has the meaning assigned in Section 3.3(2). 
  
 (131) “Net Proceeds Deficiency” has the meaning assigned in Section 3.3(2)(vi). 
  
 (132) “Net Sales Proceeds” means an
amount determined in accordance with the following formula: 
  

					
	Net Sales Proceeds =	 	 	 	(a) Sales Price
	 	 	minus	 	(b) Sales Expenses
	Where:	 	 	 	 

  
 Sales Price
means the gross price shown in the contract of sale, as adjusted for usual and customary prorations between the purchaser and the selling Borrower; 
  
 Sales Expenses means all commercially reasonable and customary expenses incurred and paid to third parties in connection with such sale.

  
 (133) “Non-Recourse
Exceptions” has the meaning assigned in Section 12.2(1). 
  
 (134) “Notes” means the Floating Notes and, without duplication, any promissory notes evidencing the Alternate Interest Rate Loans, if any. 
  
 (135) “OFAC” means the USA Patriot
Act of 2001, including Executive Order 13324 – Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism, as amended through the date hereof, and other federal laws and regulations and
executive orders administered by, the United States Department of the Treasury, Office of Foreign Assets Control which prohibit, among other things, the engagement in transactions with, and the provision of services to, certain foreign countries,
territories, entities and individuals (such individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanction and embargo programs). 
  
 (136) “OFAC Programs” means such
additional programs administered by OFAC which prohibit dealing with individuals or entities in certain countries regardless of whether such individuals or entities appear on the OFAC lists. 
  
 (137) “Operating Account” has the
meaning assigned in Section 5.7(1). 
  
 (138) “Operating Budget” has the meaning assigned in Section 5.3(1)(a). 
  
 (139) “Operating Expenses” means, as of any date of calculation and for each Individual Property then serving as
collateral for the Loans, an amount calculated as the sum of (a) all salaries and employee expense and payroll taxes of all employees at such Individual 

  

 -16- 

 
Property (including salaries, wages, bonuses and other compensation, and benefits including life, medical and disability insurance and retirement benefits);
(b) management fees and expenses paid to any Manager under a Management Agreement; (c) costs and expenses related to the repair and maintenance of such Individual Property (other than those paid with insurance proceeds); (d) costs and expenses of
operational supplies and utilities; (e) the cost of any insurance procured with respect to such Individual Property; (f) governmental fees and assessments (including real estate taxes, betterments, and similar charges); (g) ground rents paid to any
third-party ground lessor, if applicable; (h) rentals or other amounts paid in connection with the leasing of any vehicles, telephone or computer systems, or other equipment; (i) franchise fees and other amounts paid to any franchisor under any of
the Franchise Agreements; (j) costs and expenses related to the provision of food, beverages, and laundry service; and (k) costs and expenses related to supplies, license fees, advertising, marketing, reservation systems and any and all other
operating expenses as are reasonably necessary for the proper and efficient operation of such Individual Property in accordance with the provisions hereof and determined in accordance with GAAP and the Uniform System of Accounts; but excluding,
however, (i) federal, state and municipal excise, sales, and use taxes collected directly from patrons and guests or as a part of the sales price of any goods, services or displays, such as gross receipts, admissions, cabaret or similar or
equivalent taxes paid over to federal, state or municipal governments; (ii) payments on the Loans or other mortgage or security instrument encumbering such Individual Property; and (iii) depreciation and amortization on intangibles. 
  
 (140) “Operating Lease” means each
of those certain leases designated as “Operating Leases” on Schedule 11 hereto with respect to the Properties. 
  
 (141) “Operating Revenues” means, as of any date of calculation and for each Individual Property then serving as
collateral for the Loans, an amount calculated as the sum of all revenues, receipts, and income of any kind derived directly or indirectly by a Borrower or by an Operator from or in connection with such Individual Property whether on a cash basis or
credit, paid or collected, determined in accordance with GAAP and the Uniform System of Accounts, and including without limitation (a) revenues from the rental of guest rooms, whether to individuals, groups or transients; (b) revenues from the sale
of food and beverages, whether from restaurants, room service, catering or otherwise; (c) revenues from vending machines, honor bar, movie rental, telephone, concessions and similar services; (d) revenues from fitness centers, golf courses and other
facilities and equipment rentals related to any of the foregoing; (e) revenues from business centers, internet kiosks, fax stations and similar services; (f) revenues from parking and guest transportation services or facilities; (g) revenues from
retail sales; and (h) rents and other revenues (including any common area maintenance revenues and other items denominated as additional rent) received from tenants, lessees, licensees or concessionaires (but not including their gross receipts); but
excluding, however: (i) federal, state and municipal excise, sales, and use taxes collected directly from patrons and guests or as a part of the sales price of any goods, services or displays, such as gross receipts, admissions, cabaret or similar
or equivalent taxes and paid over to federal, state or municipal governments, (ii) gratuities, (iii) proceeds of insurance and condemnation, (iv) proceeds from sales other than sales in the ordinary course of business, (v) all loan proceeds from
financing or refinancings of the Facility or interests therein or components thereof, (vi) judgments and awards, except any portion thereof arising from normal business operations of the hotel, and (vii) items constituting “allowances”
under the Uniform System of Accounts. 
  

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 (142) “Operator” means each of SHP Lessee Corp., SHP Lessee II
Corp. and SHP Lessee III Corp., each a Delaware corporation, together with their successors and assigns. 
  
 (143) “Other Release” means a Release of an Individual Property carried out in compliance with the terms of
Section 2.7(2). 
  
 (144)
“Other Release Property” means any Individual Property which is the subject of a Release carried out in compliance with the terms of Section 2.7(2). 
  
 (145) “Participant” has the meaning assigned in Section 11.22(3). 

 
 (146) “Payment Date” means
October 1, 2003 and the first Business Day of each calendar month thereafter to and including the Maturity Date. 
  
 (147) “Permitted Encumbrances” means with respect to each Individual Property, only the outstanding liens,
easements, restrictions, security interests and other exceptions to title set forth in the Title Policy insurance insuring the lien of the Mortgage, together with the liens and security interests in favor of the Administrative Agent created by the
Loan Documents and such other matters as are expressly set forth in the Loan Documents. 
  
 (148) “Permitted Investment” means any one or more of the following: 
  
 (i) demand deposit accounts maintained at an Approved
Financial Institution; 
  
 (ii) direct
obligations of, or obligations guaranteed as to timely payment of principal and interest by, the United States of America (“USA”) or any agency or instrumentality thereof provided that such obligations are backed by the full faith and
credit of the USA; 
  
 (iii) repurchase
obligations with respect to any security described in clause (i) above entered into with a depository institution or trust company (acting as principal) whose long-term unsecured debt obligations have received one of the two highest ratings
available for such securities by at least two of the Rating Agencies; 
  
 (iv) units of taxable money market funds which funds are regulated investment companies, seek to maintain a constant net asset value of $1 per share and invest solely in obligations backed by the full faith and credit
of the USA, and have been designated in writing by at least two of the Rating Agencies in one of the two highest credit rating categories as Permitted Investments with respect to this definition; provided in each case, that no such investment shall
be purchased at a premium to its face value (disregarding interest accrued to the date of acquisition) and that no such investment shall have a maturity later than the earlier of (x) the Business Day before the proceeds of such investment are
anticipated to be needed, or (y) one year from the date of acquisition; 
  

 -18- 

 (v) commercial paper which is (a) rated at least AA-1” by S&P and, if rated by
Moody’s, at least the equivalent Moody’s ratings, (b) issued by a corporation or company (other than any Borrower or affiliate thereof) and (c) in certificated form; and 
  
 (vi) investments in (A) the Oppenheimer Centennial Government Trust or (B) such other money market funds
rated at least AAm or AAm-G or its equivalent from any Rating Agency (for purposes of this definition, such investments may include money market funds sponsored by the Administrative Agent or any of its Affiliates that have the required credit
rating from any Rating Agency). 
  
 (149)
“Person” means any individual, corporation, partnership, joint venture, association, joint stock company, trust, trustee, estate, limited liability company, unincorporated organization, real estate investment trust,
government or any agency or political subdivision thereof, or any other form of entity. 
  
 (150) “Personality” shall have the meaning assigned to such term in the related Mortgage with respect to each
Individual Property and shall include the FF&E with respect to such Individual Property. 
  
 (151) “Policies” shall have the meaning assigned to such term in Section 3.1(2). 
  
 (152) “Prepayment Fee” means,
collectively and to the extent applicable, the Libor Breakage Fee, the Standard Prepayment Fee and the Delevering Prepayment Fee. 
  
 (153) “Prime Rate” means the highest prime rate (or base rate) reported in the Money Rates column or section of
The Wall Street Journal as the rate in effect for corporate loans at large U.S. money center commercial banks (whether or not such rate has actually been charged by any such bank) from time to time. If The Wall Street Journal ceases
publication of the Prime Rate, the “Prime Rate” shall mean the prime rate (or base rate) announced by Fleet National Bank (whether or not such rate has actually been charged by such bank). If such bank discontinues the practice of
announcing the Prime Rate, the “Prime Rate” shall mean the prime or base rate charged by a large United States commercial bank selected by the Administrative Agent. 
  
 (154) “Prime Rate Spread” means, with respect to any Interest Period and any Type of
Notes, the positive difference, if any, of (a) the Floating Interest Rate that would be in effect during such Interest Period for such Type of Notes minus (b) the Prime Rate on the day that is two (2) Business Days prior to the first day of such
Interest Period. 
  
 (155)
“Properties” means collectively, the aggregate of all or more than one, as applicable, of each Individual Property which is subject to the terms of this Agreement. 
  
 (156) “Rate Cap Rating Criteria”
means with respect to any Person, the long term unsecured debt obligations of the applicable Person are rated at least “AA” by S&P and at least “Aa” by Moody’s. 
  

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 (157) “Rating Agencies” means each of S&P, Moody’s and
Fitch, or any other nationally-recognized statistical rating agency which has been approved by the Administrative Agent. 
  
 (158) “Rebranding Renovation” means, with respect to any Individual Property, extensive capital improvements or
renovations to the Improvements which are undertaken in connection with a re-branding or change in franchise affiliation with respect to such Individual Property. 
  
 (159) “Register” has the meaning assigned in Section 2.1(3)(b). 

 
 (160) “Regulation D” means
Regulation D of the Board of Governors of the Federal Reserve System of the United States of America (or any successor), as the same may be modified and supplemented and in effect from time to time. 
  
 (161) “Regulatory Change” means,
with respect to any Lender, any change after the date hereof in Federal, state or foreign law or regulations (including, without limitation, Regulation D) or the adoption or making after such date of any interpretation, directive or request applying
to a class of banks including such Lender of or under any Federal, state or foreign law or regulations (whether or not having the force of law and whether or not failure to comply therewith would be unlawful) by any court or governmental or monetary
authority charged with the interpretation or administration thereof. 
  
 (162) “Related Parties” has the meaning assigned in Section 6.27. 
  
 (163) “Release” means an Immediate Release or an Other Release. 
  
 (164) “Release Amount” means (a)
with respect to any Immediate Release of an Individual Property being sold by any Borrower on or before December 31, 2003 pursuant to Section 2.7(1) of this Agreement, an amount equal to one hundred percent (100%) of the Allocated Loan Amount
for such Individual Property, (b) with respect to any Other Release of an Individual Property being sold by any Borrower pursuant to Section 2.7(2) of this Agreement, (i) if the Loan-to-Value Ratio immediately following the proposed Other
Release will be less than or equal to the Maximum Loan-to-Value Ratio, an amount equal to one hundred twenty-five percent (125%) of either (A) with respect to an Individual Property that is not a Tarsadia Property, the Allocated Loan Amount for such
Individual Property or (B) with respect to a Tarsadia Property, the Tarsadia Floor Release Amount, and (ii) if the Loan-to-Value Ratio immediately following the proposed Other Release will be greater than the Maximum Loan-to-Value Ratio, an amount
equal to the greater of (x) one hundred twenty-five percent (125%) of either (A) with respect to an Individual Property that is not a Tarsadia Property, the Allocated Loan Amount for such Individual Property, or (B) with respect to a Tarsadia
Property, the Tarsadia Floor Release Amount and (y) the Net Sale Proceeds from the sale of such Individual Property, or (c) with respect to any Other Release of an Individual Property which is the subject of a Rebranding Renovation pursuant to
Section 2.7(2) of this Agreement, an amount equal to one hundred twenty-five percent (125%) of either (i) with respect to an Individual Property that is not a Tarsadia Property, the Allocated Loan Amount for such Individual Property, or (ii)
with respect to a Tarsadia Property, the Tarsadia Floor Release Amount. 
  

 -20- 

 (165) “Rents” means all rents, revenues, issues, profits, income
and proceeds due or to become due from tenants of the Properties, including rentals and all other payments of any kind under the Leases or otherwise for using, leasing, licensing, possessing, operating from, rendering in, selling or otherwise
enjoying the Properties. 
  
 (166)
“Replacement Interest Rate Cap Agreement” has the meaning assigned in Section 6.31. 
  
 (167) “Reserves” means the Tax and Insurance Reserve, the Capital Expenditure Reserve, the Ground Lease Rent
Reserve, the Deferred Maintenance Reserve and the Trapped Cash Reserve. 
  
 (168) “Reserve Requirement” means, for any Interest Period for any Floating Loan, the average maximum rate at which reserves (including, without limitation, any marginal, supplemental or
emergency reserves) are required to be maintained during such Interest Period under Regulation D by member banks of the Federal Reserve System in New York City with deposits exceeding $1,000,000,000 against “Eurocurrency liabilities” (as
such term is used in Regulation D). Without limiting the effect of the foregoing, the Reserve Requirement shall include any other reserves required to be maintained by such member banks by reason of any Regulatory Change with respect to (i) any
category of liabilities that includes deposits by reference to which the Libor Base Rate for any Interest Period for any Floating Loans is to be determined as provided in the definition of “Libor Base Rate” or (ii) any category of
extensions of credit or other assets that includes Floating Loans. 
  
 (169) “Restoration” means the repair and restoration of an Individual Property after a casualty or Condemnation as nearly as possible to the condition the Individual Property was in immediately
prior to such casualty or Condemnation, with such alterations as may be reasonably approved by the Administrative Agent. 
  
 (170) “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.,
and any successor thereto. 
  
 (171)
“Scheduled Payment” means each payment of interest only, or of principal and interest, due under each Loan on the related Payment Date as provided in Section 2.3(1) hereof. 
  
 (172) “Secondary Market Transaction”
has the meaning assigned in Section 11.9(2). 
  
 (173) “Security Agreements” means each of those certain Security Agreements, dated the date hereof, by each Borrower, each Operator and Manager in favor of the Administrative Agent (on behalf
of the Lenders). 
  
 (174) “Senior
Floating Interest Rate” has the meaning assigned in Section 2.2(l)(a). 
  
 (175) “Senior Floating Loan Amount” means, as of the Closing Date,
$             The Senior Floating Loan Amount is subject to increase (up to an aggregate 

  

 -21- 

 
amount of $       ) during the term hereof pursuant to the provisions of Section 2.9 or Section 2.10.

  
 (176) “Senior Floating
Loans” means Loans that bear interest at the Senior Floating Interest Rate. 
  
 (177) “Senior Floating Notes” means the promissory notes evidencing the Senior Floating Loans of even date
herewith substantially in the form of Exhibit B-l hereto and all promissory notes delivered in substitution or exchange therefor, in each case as the same may be modified, Converted, amended or expended from time to time. 
  
 (178) “Senior Lender” and
“Senior Lenders” have the meanings assigned, respectively, in the introductory paragraph on page one of this Agreement. 
  
 (179) “Servicer” has the meaning assigned in Section 11.24. 
  
 (180) “Servicing Agreement” has the
meaning assigned in Section 11.24. 
  
 (181) “Severed Loan Documents” has the meaning assigned in Section 11.9(4). 
  
 (182) “Site Assessment” means an environmental engineering report for an Individual Property prepared at the
applicable Borrower’s expense by an engineer engaged by such Borrower and reasonably approved by the Administrative Agent, and in a manner reasonably satisfactory to the Administrative Agent, based upon an investigation relating to and making
appropriate inquiries concerning the existence of Hazardous Materials on or about such Individual Property, and the past or present discharge, disposal, release or escape of any such substances, all consistent with ASTM Standard El527-00 (or any
successor thereto published by ASTM and in effect at the time such report was produced) and good customary and commercial practice. 
  
 (183) “Special Earnout Advance” means any future advance of principal under the Loans by the Lenders to the
Borrowers to increase the outstanding principal balance of the Loans after the Closing Date in accordance with the terms and conditions of Section 2.10 of this Agreement. 
  
 (184) “Special Earnout Calculation Date” means each of December 31,2003 and June 30,
2004. 
  
 (185) “Special Earnout
Valuation Limit” means, as of any Special Earnout Calculation Date, the product obtained by multiplying (a) the quotient obtained by dividing the Trailing Twelve Month NOI as of such date by nine and one-half percent (9.5%) by (b)
seventy- five percent (75%). The Special Earnout Valuation Limit shall be calculated, and is subject to verification pursuant to Section 2.10(3), by the Administrative Agent on behalf of the Lenders. 
  
 (186) “Special Purpose Entity” has
the meaning assigned in Section 6.27. 
  
 (187) “Standard Earnout Advance” means any future advance of principal under the Loans by the Lenders to the Borrowers to increase the outstanding principal balance of 

  

 -22- 

 
the Loans after the Closing Date in accordance with the terms and conditions of Section 2.9 of this Agreement. 
  
 (188) “Standard Prepayment Fee”
means, with respect to any prepayment of the Loans, whether in part or in full, whether voluntarily made by any Borrower or made as a result of an acceleration of the Loans by the Administrative Agent on behalf of the Lenders following the
occurrence of an Event of Default, or otherwise, other than a prepayment made by any Borrower in connection with the sale of an Immediate Release Property pursuant to Section 2.7(1) of this Agreement or pursuant to Section
3.3(3) in the event Net Proceeds are not made available for the Restoration of an Individual Property: 
  
 (a) for any such prepayment made during the first twelve (12) Loan Months, if the Cumulative Prepayment Amount (including the Allocated
Loan Amount then being prepaid), is equal to or less than $50,000,000, two percent (2%) of the principal amount being prepaid; 
  
 (b) for any such prepayment made during the first twelve (12) Loan Months, if the Cumulative Prepayment Amount (including the Allocated
Loan Amount then being prepaid), is greater than $50,000,000, two and one-half percent (2.50%) of the sum of (i) the amount being prepaid plus (ii) sum of all other previous principal prepayments made (other than a prepayment made by any Borrower in
connection with the sale of an Immediate Release Property pursuant to Section 2.7(1) of this Agreement or pursuant to Section 3.3(3) in the event Net Proceeds are not made available for the Restoration of an Individual Property);
provided that the Borrower shall receive a credit against such amount for any Standard Prepayment Fees previously paid; 
  
 (e) for any such prepayment made during the period commencing with the thirteenth (13th) Loan Month and ending at the expiration of the
eighteenth (18th) Loan Month, one percent (1%) of the principal amount prepaid; and 
  
 (f) for any such prepayment made at any time after the expiration of the eighteenth (18th) Loan Month, zero percent (0%) of the principal
amount prepaid. 
  
 (189)
“State” means with respect to each Individual Property, the state in which such Individual Property is located. 
  
 (190) “Stock Pledge” means that certain Stock Pledge and Security Agreement (together with the attachments thereto
and consents, certificates, powers and other materials referred to therein), dated the date hereof, relating to the pledges of stock to the Administrative Agent (on behalf of the Lenders) from Sunstone Hotel Properties, Inc. as pledgor regarding its
pledge of equity interests in SHP Lessee Corp., SHP Lessee II Corp., and SHP Lessee III Corp. 
  
 (191) “STR Report” means a Smith Travel Research Report for each Individual Property in the form of Exhibit
L attached hereto 
  
 (192)
“Subordination of Management Agreements” means each of those certain Manager’s Consent and Subordination of Management Agreements, dated the date hereof, by each Manager in favor of the Administrative Agent (on behalf of
the Lenders). 
  

 -23- 

 (193) “Sunstone” means Sunstone Hotel Investors, L.L.C., a
Delaware limited liability company, together with its successors and assigns. 
  
 (194) “Tarsadia Anaheim Ground Lease” means that certain Ground Lease dated as of August 7,1997 by and between TSB Crystal Partnership, a California general partnership, as
“Landlord” and Sunstone OP Properties L.L.C., a Delaware limited liability company, as “Tenant”, a memorandum of which dated August 7,1997 was recorded on August 7,1997 as Instrument No. 19970377909 in
the Office of the Clerk/Recorder of Orange County, California, and which Ground Lease was amended by that certain Amendment Number One To Ground Lease dated as of January 23,1998 and that certain Amendment Number Two To Ground Lease dated as of
January 26, 2002. 
  
 (195) “Tarsadia
Anaheim Property” means that certain piece or parcel of land, together with the buildings and improvements thereon and appurtenances thereto, which is encumbered by the Tarsadia Anaheim Ground Lease, in each case to the extent of any
Borrower’s interest therein. 
  
 (196)
“Tarsadia Floor Release Amount” means (i) for the Tarsadia Anaheim Property, $2,771,000, (ii) for the Tarsadia Los Angeles Property, $11,777,000, or (iii) for the Tarsadia San Diego Property, $8,544,000. 
  
 (197) “Tarsadia Ground Lease” means
each of the Tarsadia Anaheim Ground Lease, the Tarsadia Los Angeles Ground Lease, and the Tarsadia San Diego Ground Lease. 
  
 (198) “Tarsadia Los Angeles Ground Lease” means that certain Ground Lease dated as of August 28,1997 by and
between Peacock, LLC, a California limited liability company, as “Landlord” and Sunstone OP Properties L.L.C., a Delaware limited liability company, as “Tenant”, a memorandum of which dated August 28,
1997 was recorded on August 28,1997 as Instrument No. 97-1344998 in the Official Records of Los Angeles County, and which Ground Lease was amended by that certain Amendment Number One To Ground Lease dated as of September 2,1997, that certain
Amendment Number Two To Ground Lease dated as of January 23, 1998 and that certain Amendment Number Three To Ground Lease dated as of January 26,2002. 
  
 (199) “Tarsadia Los Angeles Property” means that certain piece or parcel of land, together with the buildings and
improvements thereon and appurtenances thereto, which is encumbered by the Tarsadia Los Angeles Ground Lease, in each case to the extent of any Borrower’s interest therein. 
  
 (200) “Tarsadia Property” means each of the Tarsadia Anaheim Property, the Tarsadia
Los Angeles Property, and the Tarsadia San Diego Property. 
  
 (201) “Tarsadia San Diego Ground Lease” means that certain Ground Lease dated as of August 7, 1997 by and between Shivani, LLC, a California limited liability company, as
“Landlord” and Sunstone Hotel Investors, L.P., a Delaware limited partnership, predecessor- in-interest to Sunstone OP Properties L.L.C., a Delaware limited liability company, as “Tenant”, a memorandum
of which dated August 7, 1997 was recorded on August 7, 1997 as Instrument No. 1997-0378110 in the San Diego County Recorder’s Office, and which Ground Lease was 

  

 -24- 

 
amended by that certain Amendment Number One To Ground Lease dated as of January 23, 1998 and that certain Amendment Number Two To Ground Lease dated as of
January 26, 2002. 
  
 (202) “Tarsadia
San Diego Property” means that certain piece or parcel of land, together with the buildings and improvements thereon and appurtenances thereto, which is encumbered by the Tarsadia San Diego Ground Lease, in each case to the extent of
any Borrower’s interest therein. 
  
 (203)
“Tax and Insurance Reserve” has the meaning assigned in Section 5.8(1). 
  
 (204) “Tax Escrow Rebalancing” has the meaning assigned in Section 5.8(l)(c). 
  
 (205) “Taxes” has the meaning
assigned in Section 8.2 hereof. 
  
 (206)
“Terrorism Insurance” has the meaning assigned in Section 3.1(1)(k). 
  
 (207) “TIC Amount” has the meaning assigned in Section 3.l(l)(k). 
  
 (208) “Title Policy” means one or
more lender’s polic(y)(ies) of title insurance issued to the Administrative Agent (on behalf of the Lenders) on or about the Closing Date and insuring the lien of each of the Mortgages. 
  
 (209) “Trailing Twelve-Month NOI”
means, as of any date of calculation, the Net Operating Income of all of the Properties then remaining as collateral for the Loans for the twelve full calendar months immediately preceding such date of calculation. Trailing Twelve- Month NOI shall
not include any Net Operating Income attributable to any Individual Property that was included as collateral for the Loans during a portion or all of such twelve-month period but was released from the lien of the Mortgages prior to the date of such
calculation. 
  
 (210) “Trapped Cash
Reserve” has the meaning assigned in Section 5.8(5). 
  
 (211) “TRIA” has the meaning assigned in Section 3.1(1)(k). 
  
 (212) “Type” has the meaning assigned in Section 1.2. 
  
 (213) “Uniform System of
Accounts”means the Uniform Systems of Accounts for the Lodging Industry (9th edition), as revised and supplemented from time to time. 
  
 (214) “Westbrook Partners” means Westbrook Real Estate Partners LLC, a Delaware limited liability company, or any
entity wholly owned and Controlled by Westbrook Real Estate Partners LLC, a Delaware limited liability company, including Westbrook Real Estate Partners Management III, LLC, a Delaware limited liability company. 
  
 Section 1.2 Types. Loans hereunder are sometimes distinguished
by “Type.” The “Type” of a Loan refers to whether such Loan is a Senior Floating Loan, a Junior Floating Loan or an Alternate Interest Rate Loan. 
  

 -25- 

 Section 1.3 Borrower; Joint and Several Liability; Suretyship Waivers. It is intended by
the parties hereto that each Borrower shall be liable, jointly and severally, for all of the obligations of the Borrowers hereunder. Accordingly, each of Sunstone LAX, Sunstone Hotel, Sunstone OP, SHP Ogden and Sunstone SH expressly agrees and
acknowledges with each Lender and the Administrative Agent that: 
  
 (1) It understands that the Lenders would not have made the Loans but for the agreement of each Borrower to be jointly and severally liable for each and every obligation of the Borrowers set forth herein, and it
agrees that it has received sufficient consideration for its agreement to be bound by and to the extent of the terms hereof. In particular, each Borrower is of the view that the financial accommodations offered to each Borrower under this Agreement
will enhance the aggregate borrowing powers of the Borrowers, and that each Borrower and Borrower Party will receive substantial direct and/or indirect benefits by reason of the making of the Loans and other financial accommodations provided herein.

  
 (2) In any provision of this Agreement where
any Borrower makes a representation or warranty, such representation or warranty shall constitute a separate representation or warranty made by each Borrower as to the content and substance thereof. 
  
 (3) In any provision of this Agreement where any Borrower
makes an agreement or covenant, such agreement or covenant shall be a separate agreement or covenant of each Borrower, and each such entity shall be jointly and severally liable with each other such entity for the full and faithful performance
thereof, without regard to whether (i) any Borrower shall have better rights to control or assure the performance of such agreement or covenant or (ii) such agreement or covenant affects an Individual Property in which any Borrower does not have a
direct interest. 
  
 (4) An Event of Default may
occur hereunder, and the Administrative Agent and Lenders shall be permitted to exercise their remedies as stated herein, if any Borrower by its action or inaction causes an Event of Default to occur, and the lack of fault or breach by any other
Borrower shall neither serve nor be deemed to halt such Event of Default nor prevent, delay or impair any such exercise of remedies. 
  
 (5) In exercising any remedies herein after an Event of Default, the Administrative Agent and Lenders shall be permitted to exercise their
remedies as stated herein against any or all of the Borrowers, or none of them, as the Administrative Agent and Lenders shall determine in their sole and absolute discretion, and any lack of fault or lack of breach by any Borrower shall not prevent,
delay or impair the pursuit or implementation of any such remedies against them. 
  
 (6) The obligations, covenants, agreements and duties of each Borrower under the Loan Documents shall in no way be discharged, affected or
impaired by any of the following: 
  
 (a) the
waiver by Administrative Agent of the performance or observance by Borrower or any other party of any of the agreements, covenants, terms or conditions contained herein; 
  

 -26- 

 (b) the extension, in whole or in part, of the time for payment by any Borrower of any
sums owing or payable under any Loan Document; 
  
 (c) any assumption by any person of any or all of any Borrower’s obligations under any Loan Document; 
  
 (d) the waiver or release or modification or amendment (whether material or otherwise) of any provision of any Loan Document; 

 
 (e) any failure, omission or delay on the part of
Administrative Agent to enforce, assert or exercise any right, power or remedy conferred on or available to Administrative Agent under any of the Loan Documents, or any action on the part of Administrative Agent granting indulgence or extension in
any form whatsoever; 
  
 (f) the voluntary or
involuntary liquidation, dissolution, sale of all or substantially all of the assets, marshaling of assets and liabilities, receivership, conservatorship, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization or other
similar proceeding affecting any Borrower or any of its assets or any impairment, modification, release or limitation of liability of any Borrower or any of their estates in bankruptcy or of any remedy for the enforcement of such liability resulting
from the operation of any present or future provision of the Federal Bankruptcy Code or other similar statute or from the decision of any court; 
  
 (g) the release of any Borrower from the performance or observance of any of the agreements, covenants, terms or conditions contained in
any of the Loan Documents by operation of law; 
  
 (h) the power or authority or lack thereof of any Borrower to execute, acknowledge or deliver any of the Loan Documents; 
  
 (i) the legality, validity or invalidity of any Loan Document; 
  
 (j) any defenses whatsoever that Borrower may or might have to the payment of any portion of the
Indebtedness except for the payment thereof; 
  
 (k) the existence or non-existence of any Borrower as a legal entity; 
  
 (1) any right of setoff, counterclaim or defense (other than payment in full of the Indebtedness in accordance with the terms of the Loan
Documents) that any Borrower may or might have to its respective undertakings, liabilities and obligations hereunder, each and every such defense being hereby waived by each Borrower; or 
  
 (m) any other cause, whether similar or dissimilar to any of the foregoing, that might constitute a legal or
equitable discharge of any Borrower (whether or 

  

 -27- 

 
not such Borrower shall have knowledge or notice thereof) other than payment in full of the Indebtedness. 
  
 (7) To the extent notwithstanding the above and the express
intent of the parties, if any Borrower is deemed to be a surety or guarantor of another Borrower, then the following shall apply: 
  
 (a) Each Borrower understands and further acknowledges that if the Administrative Agent forecloses judicially or nonjudicially against any
real property securing the Loans, that foreclosure could impair or destroy any ability that such Borrower may have to seek reimbursement, contribution or indemnification from another Borrower or others based on any right such Borrower may have of
subrogation, reimbursement, contribution or indemnification for any amounts paid by such Borrower hereunder. Each Borrower further understands and acknowledges that in the absence of this provision, the potential impairment or destruction of such
Borrower’s rights, if any, may entitle such Borrower to assert a defense based on California Code of Civil Procedure (“CCP”) § 580d as interpreted in Union Bank v. Gradsky, to the extent applicable. Each Borrower freely,
irrevocably and unconditionally: (a) waives and relinquishes that defense, and agrees that such Borrower will be fully liable hereunder, even though the Administrative Agent may foreclose judicially or nonjudicially against the real property
securing the Loans; (b) agrees that such Borrower will not assert that defense in any action or proceeding that the Administrative Agent may commence to enforce the terms of the Loan Documents; (c) acknowledges and agrees that the rights and
defenses waived by such Borrower hereunder include any right or defense that such Borrower may have or be entitled to assert based upon or arising out of any one or more of the following (to the extent applicable): (i) CCP § 580a (which, if
such Borrower had not given this waiver, would otherwise limit such Borrower’s liability after any nonjudicial foreclosure sale to the difference between the obligations for which such Borrower is liable and the fair market value of the
property or interests sold at such nonjudicial foreclosure sale rather than the actual proceeds of such sale), (ii) CCP § 580b and CCP § 580d (which, if such Borrower had not given this waiver, would otherwise limit the Administrative
Agent’s right to recover a deficiency judgment with respect to purchase money obligations and after any nonjudicial foreclosure sale, respectively), (iii) CCP § 726 (which, if such Borrower had not given this waiver, among other things,
would otherwise require the Administrative Agent to exhaust all of its security before a personal judgment may be obtained for a deficiency), or (iv) California Civil Code § 2848 (which, if Borrower had not given this waiver, among other
things, would entitle Borrower to enforce every remedy the Administrative Agent may have against the Borrower for its payments hereunder); and (d) acknowledges and agrees that the Administrative Agent is relying on this waiver in making the Loans,
and that this waiver is a material part of the consideration that the Administrative Agent is receiving for making the Loans. 
  

 -28- 

 WITHOUT LIMITING THE FOREGOING, EACH BORROWER WAIVES ALL RIGHTS AND DEFENSES THAT SUCH BORROWER MAY HAVE IN CONNECTION
WITH THE FOREGOING TERMS. THIS MEANS, AMONG OTHER THINGS: 
  
 (i) THE ADMINISTRATIVE AGENT MAY COLLECT FROM SUCH BORROWER WITHOUT FIRST FORECLOSING ON ANY REAL OR PERSONAL PROPERTY COLLATERAL PLEDGED BY THE BORROWER OR ANY OTHER BORROWER; AND 
  
 (ii) IF THE ADMINISTRATIVE AGENT FORECLOSES ON ANY REAL
PROPERTY COLLATERAL PLEDGED BY THE BORROWER OR ANY OTHER BORROWER: 
  
 (A) THE AMOUNT OF THE ADMINISTRATIVE AGENT’S CLAIM HEREUNDER MAY BE REDUCED ONLY BY THE PRICE FOR WHICH THAT COLLATERAL IS SOLD AT THE FORECLOSURE SALE, EVEN IF THE COLLATERAL IS WORTH MORE THAN THE SALE PRICE;
AND 
  
 (B) THE ADMINISTRATIVE AGENT MAY COLLECT
FROM SUCH BORROWER EVEN IF THE ADMINISTRATIVE AGENT, BY FORECLOSING ON THE REAL PROPERTY COLLATERAL, HAS DESTROYED ANY RIGHT SUCH BORROWER MAY HAVE TO COLLECT FROM THE BORROWER. 
  
 THIS IS AN UNCONDITIONAL AND IRREVOCABLE WAIVER OF ANY RIGHTS AND DEFENSES THE BORROWERS MAY HAVE IN CONNECTION WITH THE LOANS. THESE RIGHTS
AND DEFENSES INCLUDE, BUT ARE NOT LIMITED TO, ANY RIGHTS OR DEFENSES BASED UPON CCP §§ 580a, 580b, 580d, OR 726 (TO THE EXTENT APPLICABLE). 
  
 Section 1.4 Interpretation. 
  
 For all purposes of this Agreement and each other Loan Document, except as otherwise expressly required or unless the context clearly indicates a contrary
intent: 
  
 (1) the capitalized terms defined in
this Article have the meanings assigned to them in this Article, include the plural as well as the singular, and, when used with respect to any instrument, contract or agreement, include all extensions, modifications, amendments and supplements from
time to time thereto; 
  
 (2) all accounting
terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP (as hereinafter defined) in effect on the date hereof; 
  
 (3) the words “herein,” “hereof,” and “hereunder” and other words of similar import refer to this Agreement
and each other Loan Document as a whole and not to any particular Article, Section, or other subdivision; 
  

 -29- 

 (4) the words “include” and “including” and other words of similar
import shall be construed as if followed by the phrase “, without limitation,”; 
  
 (5) the phrases “satisfactory to any Lender” or “satisfactory to Administrative Agent” shall mean in form and
substance satisfactory to such Lender or Administrative Agent, as the case may be, in all respects, the phrases “with Lender’s consent”, “with Lender’s approval”, “with Administrative Agent’s consent” or
“with Administrative Agent’s approval” shall mean such consent or approval at Lender’s or Administrative Agent’s, as the case may be, discretion, and the phrases “acceptable to Lender” or “acceptable to
Administrative Agent” shall mean acceptable to Lender or Administrative Agent, as the case may be, at such party’s sole discretion, unless a different standard for consent or approval is expressly set forth; and 
  
 (6) any provision of this Agreement and each other Loan
Document permitting the recovery of out-of-pocket attorneys’ fees, costs and expenses shall be deemed to include such fees and costs incurred in all appellate proceedings. 
  
 ARTICLE II 
  
 LOAN TERMS 
  
 Section 2.1 The Commitments, Loans and Notes. 
  
 (1) Loans. Each Lender severally agrees, on the terms and conditions of this Agreement, to make a Loan to the Borrowers in
Dollars, and the Borrowers agree to accept the Loans, in a principal amount of the Commitment of such Lender, which Loans in the aggregate shall equal $345,000,000.00 on the date hereof, but which shall be subject to increase to a maximum amount of
$399,500,000 pursuant to the provisions of Section 2.9 and Section 2.10 hereof. The Loans shall be funded on the Closing Date (or on such later dates as may be required pursuant to the provisions of Section 2.9 or Section
2.10) provided that the closing conditions set forth in Schedule 2 shall have been satisfied on such date to the satisfaction of the Lenders and Administrative Agent. The Loans shall be repaid in accordance with this Agreement and the
other Loan Documents. 
  
 (2)
Lending Offices. The Loans of each Lender shall be made and maintained at such Lender’s Applicable Lending Office. 
  
 (3) Notes. 
  
 (a) Form. The Senior Floating Loan made by each Senior Lender shall be evidenced by a Senior Floating Note of the Borrowers
and the Junior Floating Loan made by each Junior Lender shall be evidenced by a Junior Floating Note of the Borrowers. Each Note shall be payable to the applicable Lender in a principal amount equal to the amount of such Lender’s Commitment.

  
 (b) Register. The
Administrative Agent shall cause to be kept a register (the “Register”) for the registration of ownership and transfer or assignment of the Notes. The names and addresses of the registered owners of the Notes, the transfers
or assignment of the Notes and the names and addresses of 

  

 -30- 

 
the transferees of the Notes will be registered in the Register under such reasonable regulations as Administrative Agent may prescribe. Each Borrower and
Administrative Agent shall deem and treat the registered owner of any Note as shown in the Register as the absolute owner thereof for all purposes, and neither any Borrower nor Administrative Agent shall be affected by any notice to the contrary and
payment of the principal of, interest on, and Prepayment Fee, if any, due on or with respect to the related Note shall be made only to or upon the order of such registered owner. All such payments so made shall be valid and effective to satisfy and
discharge the liability of any Borrower upon such Note to the extent of the sums so paid. Upon reasonable request from time to time, Administrative Agent shall permit any Borrower to examine the Register. 
  
 (c) Exchange of Notes. Any Note may be
exchanged for a new Note or Notes of the same Type if such Note or Notes to be so exchanged is surrendered for cancellation to Administrative Agent and is accompanied by the request of the registered owner thereof specifying the denomination of the
new Note or Notes to be issued in exchange therefor. Upon Administrative Agent’s request therefor, a new Note or Notes of the same Type, executed by the Borrowers and payable to such registered owner in the denominations so requested and in an
aggregate principal amount equal to the aggregate original principal amount of such Note to be so exchanged, shall be executed and delivered by the Borrowers to Administrative Agent for delivery to such registered owner in exchange for such Note to
be so exchanged. Each new Note issued pursuant to this Section 2.1 in exchange for, in substitution for, or in lieu of an outstanding Note shall be dated the date of such old Note. All new Notes shall be valid obligations of the Borrowers,
jointly and severally, evidencing the same debt as such old Notes and shall be entitled to the benefits and security of the Loan Documents to the same extent as the old Notes. Each Lender and the Administrative Agent shall bear its own costs and
expenses in connection with any request for an exchange of Notes and the Borrower shall have no liability therefor. 
  
 (d) Transfer of Notes. No transfer or assignment of the Notes shall be effective until the same is shown on the Register and
a certificate of transfer referred to below is duly issued. Any Note may be transferred on the Register if such Note is surrendered for cancellation to Administrative Agent and is accompanied by an instrument of transfer satisfactory to
Administrative Agent, a fully executed Assignment and Acceptance which has been consented to by the Administrative Agent and such other documents, certificates or opinions as Administrative Agent may reasonably require. Upon Administrative
Agent’s request therefor, a new Note of the same Type, executed by the Borrowers and registered in the name of the transferee in a principal amount equal to the original principal amount of such transferred Note, shall be executed by the
Borrowers and delivered to Administrative Agent for delivery to the transferee in exchange for such transferred Note. Upon completion of registration of transfer, a certificate that such transfer has been completed shall be promptly provided by
Administrative Agent to the Borrowers, the transferor and the transferee, and such 

  

 -31- 

 
certificate shall constitute conclusive evidence of such registration and the effectiveness of such transfer and assignment. Each Lender and the
Administrative Agent shall bear its own costs and expenses in connection with any request for a transfer of Notes and the Borrower shall have no liability therefor. 
  
 (e) Loss, Theft, Destruction or Mutilation of Notes. In the event of the loss, theft or
destruction of any Note, upon receipt by the Borrowers and Administrative Agent of a reasonably satisfactory indemnification agreement executed in favor of the Borrowers and Administrative Agent by the holder of such Note (the unsecured indemnity
agreement of any Institutional Investor with a net worth at least equal to 200% of the outstanding principal amount of the lost Note being deemed satisfactory as to the creditworthiness of the indemnitor), or in the event of the mutilation of any
Note, upon the surrender of such mutilated Note by the holder thereof to the Borrowers, the Borrowers shall execute and deliver to such holder a new replacement Note in lieu of the lost, stolen, destroyed or mutilated Note. Each Lender and the
Administrative Agent shall bear its own costs and expenses in connection with any request for a replacement of Notes and the Borrower shall have no liability therefor. 
  
 (f) Limitation on Sale or Transfer of Junior Floating Notes. Notwithstanding any other term or
provision of this Agreement to the contrary, unless and until an Event of Default has occurred, Massachusetts Mutual Life Insurance Company shall at all times be required to hold: (i) Junior Floating Notes representing at least fifty-one percent
(51%) of the aggregate outstanding principal amount of the Junior Floating Loans; and (ii) Senior Floating Notes representing at least twenty-five percent (25%) of the aggregate outstanding principal amount of the Senior Floating Loans. 

 
 Section 2.2 Interest Rate; Late Charge; Default Rate. 

  
 (1) Interest Rate.

  
 (a) Senior Floating Loans.The
outstanding principal balance of the Senior Floating Loans shall bear interest at a rate equal to ________ percent (______%) per annum in excess of the Adjusted Libor Rate for the related Interest Period (the “Senior Floating Interest
Rate”). The Senior Floating Interest Rate shall be subject to decrease in connection with a Delevering Prepayment completed in accordance with the provisions of Section 2.3(3)(b)(iii). [Once determined, this rate
and the Junior Floating Interest Rate will yield a non-default blended rate equal to the sum of 3.25% and the Adjusted Libor Rate, or a non-default blended rate equal to the sum of 2.40% and the Adjusted Libor Rate if the Delevering Prepayment has
been made.] [Bracketed text to be deleted in final draft.] 
  
 (b) Junior Floating Loans.The outstanding principal balance of the Junior Floating Loans shall bear interest at a rate equal to ________ percent (________%) 

  

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per annum in excess of the Adjusted Libor Rate for the related Interest Period (the “Junior Floating Interest Rate”). The Junior
Floating Interest Rate shall be subject to decrease in connection with a Delevering Prepayment completed in accordance with the provisions of Section 2.3(3)(b)(iii). [Once determined, this rate and the Senior Floating Interest Rate will
yield a non-default blended rate equal to the sum of 3.25% and the Adjusted Libor Rate, or a non-default blended rate equal to the sum of 2.40% and the Adjusted Libor Rate if the Delevering Prepayment has been made.] [Bracketed text to be
deleted in final draft.] 
  
 (c)
Alternate Interest Rate Loan. If any Floating Loan shall be Converted at any time to an Alternate Interest Rate Loan pursuant to this Agreement, the outstanding principal balance of such Alternate Interest Rate Loan shall bear interest
at a rate of interest equal to the Alternate Interest Rate for the related Interest Period. 
  
 (2) Interest Periods. Subject to the provisions of this Agreement which, in certain instances, require payment of interest
at the Alternate Interest Rate, each Floating Loan shall Continue from one Interest Period to the next Interest Period applicable thereto. Interest shall be computed on the basis of a fraction, the denominator of which is three hundred sixty (360)
and the numerator of which is the actual number of days elapsed from the date of the initial advance or the date on which the immediately preceding payment was due. The Borrowers may, subject to the definition of Interest Period, select an Interest
Period of one, three, or six months by giving not less than three (3) Business Days’ prior irrevocable notice of the Interest Period so selected to the Administrative Agent. Notwithstanding any other provision of any Loan Document, if the
Borrowers shall have failed to select such an Interest Period by the date required pursuant to the immediately preceding sentence, the Borrowers shall be deemed to have selected a one month Interest Period for the immediately succeeding Interest
Period. While any Event of Default exists, the Administrative Agent, on behalf of the Lenders, may, but shall not be obligated to, suspend the right of the Borrowers to select the Interest Period applicable thereto, in which event all Floating Loans
may, at the option of the Administrative Agent, be Converted (on the last day of the respective Interest Period therefor) into Floating Rate Loans with Interest Periods of one month. With respect to each Earnout Advance, the Borrowers shall be
deemed to have selected an initial Interest Period that is coterminous with the then existing Interest Period for the Loans. 
  
 (3) Late Charge. If any Borrower fails to pay any installment of interest or principal within ten (10) days after the date
on which the same is due, the Borrowers, jointly and severally, shall pay to Administrative Agent (on behalf of the related Lenders) a late charge on such past-due amount, as liquidated damages and not as a penalty, equal to five percent (5%) of
such amount, but not in excess of the maximum amount of interest allowed by applicable law. No such late charge shall be due or payable in connection with the final payment on the Loans due on the Maturity Date. 
  
 (4) Default Rate. While any Event of Default
exists, the Loans shall bear interest at the applicable Default Rate for Loans of the related Type. 
  

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 Section 2.3 Terms of Payment. The Loans shall be payable as follows: 
  
 (1) Scheduled Payments. 
  
 (a) On the Closing Date, a payment in advance of interest
only at the applicable Interest Rate shall be due and payable for the period from the Closing Date to (but not including) the first day of the next calendar month. 
  
 (b) Beginning with the Interest Period commencing on September 1, 2003, the Borrowers shall pay interest at
the applicable Interest Rate in arrears on each Payment Date commencing on October 1, 2003 to and including the Maturity Date; 
  
 (c) On each Payment Date, the Borrowers shall pay the Administrative Agent monthly installments of the Administrative Agent Servicing Fee
in accordance with the terms of Section 13.2 of this Agreement; and 
  
 (d) On the Maturity Date, the Borrowers shall pay all outstanding principal, accrued and unpaid interest, and any other amounts due under the Loan Documents until all amounts due under the Loan Documents are paid in
full. 
  
 (2) Term of Loans. The
term of the Loans shall commence on the date hereof and expire on the Maturity Date. 
  
 (3) Prepayment. 
  
 (a) Mandatory Prepayments. Outstanding principal on the Loans shall be prepaid as follows: 
  
 (i) Commencing on the Payment Date occurring in the 27th
Loan Month and on every third Payment Date thereafter (the Payment Date in the 30th Loan Month, the Payment Date in the 33rd Loan Month, etc.), if the Loan-to-Value Ratio as of such Payment Date is greater than the Maximum Loan-to-Value Ratio, the
Borrowers shall make a principal payment on the Loans in an amount equal to FIVE MILLION and 00/100 DOLLARS ($5,000,000.00), which amount shall be applied by the Administrative Agent to reduce the outstanding principal balance of the Loans. Such
principal payments shall be made without any Prepayment Fee (except a Libor Breakage Fee, if such payment is made on a day other than on the last day of an Interest Period). 
  
 (ii) Outstanding principal on the Loans shall be prepaid, in whole or in part, as applicable, in an amount
equal to any Insurance Proceeds or Condemnation Proceeds received and applied by Administrative Agent to prepay principal on the Loans pursuant to the terms of Section 3.3(3). Borrower shall pay a Libor Breakage Fee if any such prepayment is
made on a day other than on the last day of an Interest Period, but otherwise such prepayment may be made without any Prepayment Fee. 
  

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 (b) Optional Prepayments. 
  
 (i) At any time on or prior to December 31, 2003, the
Borrowers may make a partial prepayment of the Loans in an amount equal to the Release Amount in connection with the sale of an Immediate Release Property in accordance with the terms of Section 2.7(1) of this Agreement. If the Release Amount
is paid on any day other than the last day of an Interest Period, the Borrowers shall also pay the Libor Breakage Fee to the Administrative Agent on behalf of the Lenders, but otherwise such prepayment may be made without any Prepayment Fee.

  
 (ii) At any time during the term of the
Loans, the Borrowers may make a partial prepayment of the Loans in an amount equal to the Release Amount in connection with the sale or Rebranding Renovation of an Other Release Property in accordance with the terms of Section 2.7(2) of this
Agreement; provided, however, Borrower shall not make such prepayments in connection with the sale or Rebranding Renovation of Other Release Properties in an aggregate amount greater than $200,000,000 of the Allocated Loan Amounts of such Other
Release Properties during the first Loan Year. The Borrowers shall also pay (a) to the Administrative Agent on behalf of the Lenders, the Standard Prepayment Fee; (b) if the Release Amount is paid on any day other than the last day of an Interest
Period, to the Administrative Agent on behalf of the Lenders, the Libor Breakage Fee; and (c) if the sum of the Allocated Loan Amounts being prepaid, together with the sum of all other previous prepayments of Allocated Loan Amounts made in
connection with the Releases of Other Release Properties, is greater than $50,000,000 of the Allocated Loan Amounts of all of such Other Release Properties and such prepayment is made during the first 12 Loan Months, to the Administrative Agent
only, the Administrative Agent Lost Servicing Fee to compensate the Administrative Agent for its lost servicing opportunity. 
  
 (iii) If, at any time prior to the Maturity Date, Sunstone (or any other Person then owning Sunstone or substantially all of the assets
of Sunstone) becomes a publicly traded real estate investment trust through an initial public offering or otherwise, the Borrowers may make the Delevering Prepayment so long as the following conditions precedent are satisfied to the satisfaction of
the Administrative Agent: 
  
 (A) At the time of
the notice from the Borrower to the Administrative Agent of the Borrowers’ desire to make the Delevering Prepayment and at the time of the tendering of the Delevering Prepayment, there shall exist no Event of Default or condition which, with
the giving of notice from the Administrative Agent to any Borrower or the passage of time, or both, would constitute an Event of Default; 
  

 -35- 

 (B) Each Borrower shall provide to the Administrative Agent such documents, opinions and
other evidence as the Administrative Agent may reasonably require in connection with the Loan Documents as a result of the issuance of public securities related to said initial public offering and the Delevering Prepayment; 
  
 (C) Each Borrower shall provide to the Administrative Agent
at least thirty (30) days prior written notice of such Borrower’s intent to make the Delevering Payment on a date certain; 
  
 (D) At least five (5) business days prior to the proposed date for the Delevering Prepayment, the Administrative Agent on behalf of the
Lenders shall provide the Borrowers with written notice of the amount of the Delevering Prepayment; 
  
 (E) Simultaneously with the payment of the Delevering Payment to the Administrative Agent on behalf of the Lenders, the Borrowers shall
pay to the Administrative Agent, also on behalf of the Lenders, the Delevering Prepayment Fee; 
  
 (F) If the Delevering Prepayment is made by the Borrowers on any day other than the last day of an Interest Period, the Borrowers shall
also pay the Libor Breakage Fee to the Administrative Agent on behalf of the Lenders; 
  
 (G) Upon receipt of the Delevering Prepayment, the Delevering Prepayment Fee and any Libor Breakage Fee by the Administrative Agent on
behalf of the Lenders and upon the satisfaction by the Borrowers of all other conditions precedent to the Delevering Prepayment set forth in this Section 2.3(3)(b)(iii), each of the Senior Floating Interest Rate and the Junior Floating
Interest Rate shall be deemed to have been reduced to the respective interest rates necessary to yield a blended interest rate which would be equal, in the absence of an Event of Default, to the sum of the Adjusted Libor Rate and Two and 40/100
(2.40%) per annum; and 
  
 (H) From and after
the date of a Delevering Prepayment by the Borrowers in accordance with the terms of this Section 2.3(3)(b)(iii), none of the Borrowers shall be eligible under any circumstances for any Earnout Advances to increase the outstanding principal
balance of the Loans in accordance with the terms of Section 2.9 or Section 2.10 of this Agreement. 
  

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 (c) Prepayments in General; Prepayment Election Upon Acceleration.

  
 (i) If the Loans are prepaid, in whole or in
part, including, without limitation, pursuant to a casualty or Condemnation or the sale of an Other Release Property or a Rebranding Renovation, each such prepayment shall be made to the Administrative Agent on the related Payment Date (or if
elected by the Borrowers or required to be made on another date, such other date), and in every case together with (i) the accrued and unpaid interest on the principal amount prepaid, (ii) the Prepayment Fee and Administrative Agent Lost Servicing
Fee, if any, due with respect thereto, and (iii) any amounts payable to a Lender holding a Loan pursuant to Section 2.6(5) as a result of such prepayment while a Loan is in effect. If the Loans are accelerated for any reason other than
casualty or Condemnation, the Borrowers shall be deemed to have elected to prepay the Loans in full on the date of the related Event of Default and shall pay to the Administrative Agent (on behalf of the Lenders) the Standard Prepayment Fee and to
the Administrative Agent (for its lost servicing opportunity) the Administrative Agent Lost Servicing Fee (if such acceleration occurs prior to the last day of the 12th Loan Month) described above which would then be due with respect to an optional prepayment pursuant to Section 2.3(3)(b). Notwithstanding anything to
the contrary contained herein, no Standard Prepayment Fee, Delevering Prepayment Fee or Administrative Agent Lost Servicing Fee is due with respect to the Scheduled Payments of principal required to be made pursuant to Section 2.3(l)(d) or
Section 2.3(3)(a)(i) hereof or in connection with the prepayment of the Loans, or any portion thereof, as a result of any casualty or Condemnation (including but not limited to, in the event that any Borrower prepays a portion of the Loans in
order to obtain a release of an Individual Property for which the Administrative Agent has elected to apply Net Proceeds received in connection with a casualty or condemnation towards repayment of the Indebtedness pursuant to Section 3.3(3)
hereof), provided that if any such prepayment is made after the occurrence of an Event of Default or an acceleration of the Loans and prior to the acceptance of a cure thereof by Administrative Agent, including, without limitation, by virtue of any
sale of any Individual Property by foreclosure or power of sale, the Borrowers shall pay to the Administrative Agent (on behalf of the Lenders) any Prepayment Fee and to the Administrative Agent (for its lost servicing opportunity) the
Administrative Agent Lost Servicing Fee that may then be due as set forth above, if any. In the event that the Administrative Agent elects to apply any Net Proceeds to the repayment of the Loans, the Administrative Agent shall invest such Net
Proceeds in Permitted Investments through the last day of the Interest Period, as directed by the Borrowers, until such Net Proceeds are applied to the Indebtedness on the next Payment Date and the Borrowers shall continue to pay interest on the
Loans until so applied. The Administrative Agent shall not be obligated to obtain any specified 

  

 -37- 

 
rate of return with respect to Permitted Investments on the Net Proceeds and in no event shall the Administrative Agent or the Lenders be liable for any loss
of the principal amount of the Net Proceeds, the risk of such losses to be borne solely by the Borrowers for the term of the Loans (unless such loss is caused by the Administrative Agent’s conversion or misappropriation of such Net Proceeds).

  
 (ii) Except as may be set forth in
Section 2.7(4) in connection with Releases or elsewhere in this Agreement, any partial prepayment of the Loans shall (A) be applied to reduce the outstanding principal amount of the Loans on a pari passu basis and (B) decrease the Allocated
Loan Amounts for each Individual Property by an amount equal to the product of (I) the Allocated Percentage for such Individual Property and (II) the amount of the prepayment. After each such prepayment, the Administrative Agent shall prepare a
revised Exhibit E to this Agreement which reflects the revised Allocated Loan Amounts as calculated pursuant to this subsection and shall distribute such revised schedule to the Borrowers and Lenders. Such revised exhibit shall, absent
manifest error, be conclusive evidence of the revised Allocated Loan Amounts and shall be binding upon the parties hereto without the necessity of any formal amendment or other writing. 
  
 Section 2.4 Security. The Loans shall be secured by inter alia (1) the Mortgage creating a first
priority lien on each Individual Property, (2) the Assignment of Leases and Rents creating a first priority lien on such Leases and Rents with respect to each Individual Property, (3) the Stock Pledges and Membership Pledges, (4) the assignment by
the Borrowers to the Administrative Agent of the Interest Rate Cap Agreement pursuant to the Collateral Assignment of Interest Rate Cap Agreement, and (5) the other Loan Documents. As further security for the Loans, the Borrowers agree to fund the
Reserves as set forth herein. 
  
 Section 2.5 Payments;
Priority; Etc. 
  
 (1) Payments
Generally. 
  
 (a) Payments by
Borrowers. Except to the extent otherwise provided herein, all payments of principal, interest and other amounts to be made by the Borrowers under this Agreement and the Notes, and, except to the extent otherwise provided therein, all
payments to be made by the Borrowers under any other Loan Document, shall be made in Dollars, in immediately available funds, without deduction, set-off or counterclaim, to the Administrative Agent (on behalf of the Lenders). Such payments shall be
made by the Borrowers, at the sole election of the Administrative Agent, either (i) by automatic clearing house (“ACH”) debit of a bank account of one or more of the Borrowers of which the Administrative Agent
has received at least thirty (30) days’ prior written notice or (ii) by wire transfer to an account designated by the Administrative Agent by notice to the Borrowers. Each payment must be received by the Administrative Agent not later than 1:00
p.m., New York City time, on the date on which such 

  

 -38- 

 
payment shall become due (each such payment made after such time on such due date to be deemed to have been made on the next succeeding Business Day).

  
 (b) Forwarding of Payments by
Administrative Agent. 
  
 (i) Except as
otherwise agreed by the Administrative Agent and the Lenders, each payment received by the Administrative Agent under this Agreement or any Note shall be paid by the Administrative Agent promptly to the applicable Lenders in immediately available
funds, for account of such Lender’s Applicable Lending Office for the Loan or other obligation in respect of which such payment is made. 
  
 (ii) Notwithstanding any other provision of this Agreement to the contrary, the Borrowers shall be deemed to have satisfied their
obligation to make a payment to the Lenders hereunder if the Borrowers make such payment directly to the Administrative Agent in accordance with the terms of Section 2.5(1)(a) for forwarding by the Administrative Agent in accordance with the
terms of this Section 2.5(1)(b). The Borrower shall have no liability to any Lender for any loss or damages resulting from the Administrative Agent’s failure to forward any funds properly received by the Administrative Agent from the
Borrowers in accordance with the terms of Section 2.5(1)(a). 
  
 (c) Extensions to Next Business Day. If the due date of any payment under this Agreement or any Note would otherwise fall on a day that is not a Business Day, such date shall be extended to the next
succeeding Business Day, and interest shall be payable for any principal so extended for the period of such extension. 
  
 (2) Priority and Application of Payments. 
  
 (a) So long as no Event of Default shall have occurred and be continuing, payments received with respect to
the Loans (including Scheduled Payments on the Loans and any mandatory prepayments, Release Amounts, Delevering Prepayments and any other optional prepayments permitted hereunder) shall be applied and paid to the Senior Lenders and the Junior
Lenders on a pro rata basis in accordance with the respective unpaid principal amounts of the Loans. Any accrued interest, Libor Breakage Fees, Prepayment Fees or other payments with respect to either the Senior Loans or Junior Loans, as applicable,
shall be applied and paid to the Lenders holding Loans of the applicable Type, pro rata in accordance with the respective unpaid principal amounts of such Type of Loans. 
  
 (b) If an Event of Default shall have occurred and be continuing, payments received with respect to the
Loans shall be applied and paid first to the Senior Lenders, on a pro rata basis in accordance with the respective unpaid principal amounts of the Senior Loans, until each such Senior Lender has received payment in full hereunder, and
second to the Junior Lenders, on a pro rata basis in 

  

 -39- 

 
accordance with the respective unpaid principal amounts of the Junior Loans, until each such Junior Lender has received payment in full hereunder.

  
 (c) If, following the occurrence of an Event
of Default, the Administrative Agent and the Lenders, in their sole and absolute discretion, accept the cure by the Borrowers of said Event of Default and permit the Borrowers to reinstate the Loans, and during the pendency of said Event of Default
the Administrative Agent applied all or a disproportionate amount of the payments received with respect to the Loans first to the Senior Lenders, on a pro rata basis in accordance with the respective unpaid principal amounts of the Senior
Loans (pursuant to Section 2.5(2)(b) above), the Borrowers shall have the right to make a partial prepayment of the Junior Loans in an amount calculated by the Administrative Agent to be sufficient to cause the outstanding principal balances
of the Junior Loans and the Senior Loans to be in the same proportion as the outstanding principal balances of the Junior Loans and the Senior Loans on the Closing Date. If the Borrowers elect to make the foregoing partial prepayment of the Junior
Loans, said prepayment shall be accompanied by the Libor Breakage Fee, if applicable, the Administrative Agent Lost Servicing Fee, if applicable, and the Standard Prepayment Fee. 
  
 (3) Sharing of Payments, Etc. 
  
 (a) Right of Set-off. Each Borrower agrees that, in addition to (and without limitation of)
any right of set-off, banker’s lien or counterclaim a Lender may otherwise have, each Lender shall be entitled, at its option (to the fullest extent permitted by law), to set off and apply any deposit (general or special, time or demand,
provisional or final), or other indebtedness, held by it for the credit or account of the Borrowers at any of its offices, in Dollars or in any other currency, against any principal of or interest on any of such Lender’s Loans or any other
amount payable to such Lender hereunder, that is not paid when due (regardless of whether such deposit or other indebtedness is then due to any Borrower), in which case it shall promptly notify the Borrowers and the Administrative Agent thereof,
provided that such Lender’s failure to give such notice shall not affect the validity thereof. 
  
 (b) Sharing. If any Lender shall obtain from any of the Borrowers payment of any principal of or interest on any Loan owing
to it or payment of any other amount under this Agreement or any other Loan Document through the exercise of any right of set-off, banker’s lien or counterclaim or similar right or otherwise (other than from the Administrative Agent as provided
herein), and, as a result of such payment, such Lender shall have received a greater percentage of the principal of or interest on the Loans or such other amounts then due hereunder or thereunder by any Borrower to such Lender than the percentage
received by any other Lender, it shall promptly pay over such excess to the Administrative Agent for further distribution to the other Lenders, pro rata in accordance with the unpaid principal of and/or interest on the Loans or such other amounts,
respectively, owing to each of the Lenders. To such end all the Lenders shall 

  

 -40- 

 
make appropriate adjustments among themselves (by the resale of participations sold or otherwise) if such payment is rescinded or must otherwise be restored.

  
 (c) Rights of Lenders;
Bankruptcy. Nothing contained herein shall require any Lender to exercise any such right or shall affect the right of any Lender to exercise, and retain the benefits of exercising, any such right with respect to any other indebtedness or
obligation of such Borrower. If, under any applicable bankruptcy, insolvency or other similar law, any Lender receives a secured claim in lieu of a set-off to which this Section 2.5(3) applies, such Lender shall, to the extent
practicable, exercise its rights in respect of such secured claim in a manner consistent with the rights of the Lenders entitled under this Section 2.5(3) to share in the benefits of any recovery on such secured claim. 
  
 Section 2.6 Yield Protection; Etc. 
  
 (1) Additional Costs. 
  
 (a) Costs of Making or Maintaining Floating
Loans. Each Borrower shall pay directly to each Lender from time to time such amounts as such Lender may reasonably determine to be necessary to compensate such Lender for any increased costs that such Lender determines are attributable to
its making or maintaining of any Floating Loans or its obligation to make any Floating Loans hereunder, or any reduction in any amount receivable by such Lender hereunder in respect of any of such Loans or such obligation (such increases in costs
and reductions in amounts receivable being herein called “Additional Costs”). resulting from any Regulatory Change that: 
  
 (i) subjects any Lender (or its Applicable Lending Office for any of such Loans) to any tax, duty or other like charge in respect of such
Loans or its related Note or changes the basis of taxation of any amounts payable to such Lender under this Agreement or its Note in respect of any of such Loans (excluding Regulatory Changes affecting the rate of tax on the overall net income of
such Lender or of such Applicable Lending Office); or 
  
 (ii) as to any Floating Loans, imposes or modifies any reserve, special deposit or similar requirements (other than the Reserve Requirement used in the determination of the Adjusted Libor Rate for any Interest Period for such Loan) relating
to any extensions of credit or other assets of, or any deposits with or other liabilities of, such Lender (including, without limitation, any of such Loans or any deposits referred to in the definition of “Libor Base Rate”), or any such
commitment of such Lender (including, without limitation, the Commitment of such Lender hereunder); or 
  

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 (iii) as to any Floating Loans, imposes any other condition affecting this Agreement or
its Note (or any of such extensions of credit or liabilities) or its Commitment. 
  
 If any Lender requests compensation from the Borrowers under this paragraph (a), the Borrowers may, by notice to such Lender (with a copy to the Administrative Agent), suspend the obligation of such Lender thereafter to make or Continue
Floating Loans until the Regulatory Change giving rise to such request ceases to be in effect (in which case the provisions of Section 2.6(4) shall be applicable), provided that such suspension shall not affect the right of such Lender to
receive the compensation so requested. 
  
 (b)
Costs Attributable to Regulatory Change or Risk-Based Capital Guidelines. Without limiting the effect of the foregoing provisions of this Section 2.6(1) (but without duplication), each Borrower shall pay directly to each Lender
from time to time on request such amounts as such Lender may determine to be necessary to compensate such Lender (or, without duplication, the bank holding company of which such Lender is a subsidiary) for any costs that it determines are
attributable to the maintenance by such Lender (or any Applicable Lending Office or such bank holding company) as to any Floating Loans, pursuant to any law or regulation or any interpretation, directive or request (whether or not having the force
of law and whether or not failure to comply therewith would be unlawful) of any court or governmental or monetary authority (i) following any Regulatory Change or (ii) implementing any risk-based capital guideline or other requirement (whether or
not having the force of law and whether or not the failure to comply therewith would be unlawful) hereafter issued by any government or governmental or supervisory authority implementing at the national level the Basel Accord (or as a direct or
indirect consequence of, in connection with or with a view to the matters discussed in the Basel Accord), of capital in respect of (as to its Floating Loans) its Commitment or Loans (such compensation to include, without limitation, an amount equal
to any reduction of the rate of return on assets or equity of such Lender (or any Applicable Lending Office or such bank holding company) to a level below that which such Lender (or any Applicable Lending Office or such bank holding company) could
have achieved but for such law, regulation, interpretation, directive or request). 
  
 (c) Notification and Certification. Each Lender shall notify the Borrowers of any event occurring after the date hereof
entitling such Lender to compensation under paragraph (a) or (b) of this Section 2.6(1) as promptly as practicable, but in any event within forty-five (45) days, after such Lender obtains actual knowledge thereof; provided that (i) if any
Lender fails to give such notice within forty-five (45) days after it obtains actual knowledge of such an event, such Lender shall, with respect to compensation payable pursuant to this Section 2.6(1) in respect of any costs resulting from
such event, only be entitled to payment under this Section 2.6(1) for costs incurred from and after the date forty - five (45) days prior to the date that such Lender does give such notice and (ii) each Lender will designate a different
Applicable Lending Office for the Loans of such Lender affected by such event if such designation will avoid the need for, or 

  

 -42- 

 
reduce the amount of, such compensation and will not, in the reasonable opinion of such Lender, be disadvantageous to such Lender. Each Lender will furnish
to the Borrowers a certificate setting forth the basis and amount of each request by such Lender for compensation under paragraph (a) or (b) of this Section 2.6(1). Determinations and allocations by any Lender for purposes of this Section
2.6(1) of the effect of any Regulatory Change pursuant to paragraph (a) of this Section 2.6(1), or of the effect of capital maintained pursuant to paragraph (b) of this Section 2.6(1), on its costs or rate of return of maintaining
Floating Loans or its obligation to make Floating Loans, or on amounts receivable by it in respect of Floating Loans, and of the amounts required to compensate such Lender under this Section 2.6(1), shall be conclusive absent manifest error,
provided that such determinations and allocations are made on a reasonable basis. 
  
 (2) Limitation on Types of Loans. Anything herein to the contrary notwithstanding, if, on or prior to the determination of
the Libor Base Rate for any Interest Period for any Floating Loan: 
  
 (a) the Administrative Agent determines in good faith, which reasonable determination shall be conclusive, that quotations of interest rates for the relevant deposits referred to in the definition of Libor Base Rate
or upon which the Libor Base Rate is determined, are not being provided in the relevant amounts or for the relevant maturities for purposes of determining rates of interest for Floating Loans as provided herein; or 
  
 (b) Lenders holding at least 51% of the aggregate
outstanding principal amount of the Floating Loans determine in good faith, which reasonable determination shall be conclusive, and notify the Administrative Agent that the relevant rates of interest referred to in the definition of Libor Base Rate
upon the basis of which the rate of interest for Floating Loans for such Interest Period is to be determined or upon which the Libor Base Rate is determined, are not likely adequately to cover the cost to such Lenders of making or maintaining
Floating Loans for such Interest Period; 
  
 then the Administrative Agent shall
give the Borrowers and each Lender prompt notice thereof and, so long as such condition remains in effect, the Lenders shall be under no obligation to make additional Floating Loans or to Continue Floating Loans, and the Borrowers shall, on the last
day(s) of the then current Interest Period(s) for the outstanding Floating Loans, either prepay such Loans (without premium or penalty, other than a Libor Breakage Fee if such prepayment is made on any day other than the last day of an Interest
Period) or such Loans shall be automatically Converted into Alternate Interest Rate Loans. 
  
 (3) Illegality. Notwithstanding any other provision of this Agreement, in the event that it becomes unlawful for any Lender
or its Applicable Lending Office to honor its obligation to make or maintain Floating Loans hereunder (and the designation of a different Applicable Lending Office would either not avoid such unlawfulness or would be materially disadvantageous to
such Lender, in the reasonable opinion of such Lender), then such Lender shall promptly notify the Borrowers thereof (with a copy to the Administrative Agent) and such 

  

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Lender’s obligation to make or Continue, or to Convert Loans of any other Type into, Floating Loans shall be suspended until such time as such Lender
may again make and maintain Floating Loans (in which case the provisions of Section 2.6(4) shall be applicable). 
  
 (4) Treatment of Affected Loans. If the obligation of any Lender to make Floating Loans or to Continue, or to Convert
Alternate Interest Rate Loans into, Floating Loans shall be suspended pursuant to Section 2.6(1), 2.6(2) or 2.6(3), such Lender’s Loans shall be automatically Converted into Alternate Interest Rate Loans on the last day(s) of the then
current Interest Period(s) for Loans (or, in the case of a Conversion resulting from a circumstance described in Section 2.6(3), on such earlier date as such Lender may specify to the Borrowers with a copy to the Administrative Agent) and,
unless and until such Lender gives notice as provided below that the circumstances specified in Section 2.6(1), 2.6(2) or 2.6(3) that gave rise to such Conversion no longer exist: 
  
 (a) to the extent that such Lender’s Loans have been so Converted, all payments and prepayments of
principal that would otherwise be applied to such Lender’s Floating Loans shall be applied instead to its Alternate Interest Rate Loans; and 
  
 (b) all Loans that would otherwise be made or Continued by such Lender as Floating Loans shall be made or Continued instead as Alternate
Interest Rate Loans, and all Loans of such Lender that would otherwise be Converted into Floating Loans shall remain as Alternate Interest Rate Loans. 
  
 If such Lender gives notice to the Borrowers with a copy to the Administrative Agent that the circumstances specified in Section 2.6(1), 2.6(2) or 2.6(3) that gave
rise to the Conversion of such Lender’s Floating Loans pursuant to this Section 2.6(4) no longer exist (which such Lender agrees to do promptly upon such circumstances ceasing to exist), such Lender’s Alternate Interest Rate Loans
shall be automatically Converted, on the first day(s) of the next succeeding Interest Period(s) for Floating Loans, to the extent necessary so that after giving effect thereto, all Alternate Interest Rate Loans and Floating Loans are allocated among
the Lenders ratably (as to principal amounts, Types and Interest Periods) in accordance with their respective Commitments. 
  
 (5) Compensation. In connection with the prepayment of any Loan on a date other than the last day of the Interest Period for
such Loan (including, without limitation, any prepayment resulting from the acceleration of said Loan pursuant to the Administrative Agent’s or the Lender’s rights referred to in Article 9), the Borrowers shall pay to the
Administrative Agent for account of each Lender, the Libor Breakage Fee to compensate said Lender for any loss, cost or expense incurred by such Lender in connection with such prepayment. 
  
 (6) U.S. Taxes. 
  
 (a) Gross-up for Deduction or Withholding of U.S.
Taxes. Each Borrower agrees to pay to each Lender that is not a U.S. Person such additional amounts as are necessary in order that the net payment of any amount due to such non-U.S. Person hereunder after deduction for or withholding in
respect of any 

  

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U.S. Taxes imposed with respect to such payment (or in lieu thereof, payment of such U.S. Taxes by such non-U.S. Person), will not be less than the amount
stated herein to be then due and payable, provided that the foregoing obligation to pay such additional amounts shall not apply: 
  
 (i) to any payment to any Lender hereunder unless such Lender is, on the date hereof (or on the date it becomes a Lender hereunder) and
on the date of any change in the Applicable Lending Office of such Lender, either entitled to submit a Form W-8BEN (relating to such Lender and entitling it to a complete exemption from withholding on all interest to be received by it hereunder in
respect of the Loans) or Form W-8ECI (relating to all interest to be received by such Lender hereunder in respect of the Loans), or 
  
 (ii) to any U.S. Taxes imposed solely by reason of the failure by such non-U.S. Person to comply with applicable certification,
information, documentation or other reporting requirements concerning the nationality, residence, identity or connections with the United States of America of such non-U.S. Person if such compliance is required by statute or regulation of the United
States of America as a precondition to relief or exemption from such U.S. Taxes. 
  
 For the purposes hereof, (A) “U.S. Person” means a citizen, national or resident of the United States of America, a corporation, limited liability company, partnership or other entity created or organized in or under
any laws of the United States of America or any State thereof, or any estate or trust that is subject to Federal income taxation regardless of the source of its income, (B) “U.S. Taxes” means any present or future tax,
assessment or other charge or levy imposed by or on behalf of the United States of America or any taxing authority thereof or therein, (C) “Form W-8BEN” means Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for
United States Tax Withholding) of the Department of the Treasury of the United States of America and (D) “Form W-8ECI” means Form W-8ECI (Certificate of Foreign Person’s Claim for Exemption From Withholding on Income
Effectively Connected with the Conduct of a Trade or Business in the United States) of the Department of the Treasury of the United States of America. Each of the Forms referred to in the foregoing clauses (C) and (D) shall include such successor
and related forms as may from time to time be adopted by the relevant taxing authorities of the United States of America to document a claim to which such Form relates. 
  
 (b) Evidence of Deduction, Etc. Within 30 days after paying any amount to the Administrative
Agent or any Lender from which it is required by law to make any deduction or withholding, and within 30 days after it is required by law to remit such deduction or withholding to any relevant taxing or other authority, each Borrower shall deliver
to the Administrative Agent for delivery to such non-U.S. Person evidence satisfactory to such Person of such deduction, withholding or payment (as the case may be). 
  
 (c) Notice. Each Lender shall notify the Borrowers of any change in circumstances which would
modify or render invalid any claimed exemption or 

  

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reduction. The applicable Lender will designate a different Applicable Lending Office for the Loans that such Lender may then be maintaining if such
designation will avoid the need for, or reduce, the amounts due to such Lender pursuant to this Section 2.7(6), provided (i) in the sole opinion of such Lender the change in the Applicable Lending Office will not be disadvantageous to such
Lender and (ii) such Lender will have no obligation to designate an Applicable Lending Office located in the United States of America. 
  
 (d) Borrower’s Rights. Notwithstanding anything to the contrary contained in this Section 2.6, in the event that
any Lender (or the Administrative Agent, on behalf of any Lender) shall demand payment from the Borrowers of any additional amounts under this Section 2.6(6), then the Borrowers shall have the right to prepay the Loan(s) held by such Lender
in full without any Administrative Agent Lost Servicing Fee and any prepayment fee or premium, including the Standard Prepayment Fee, but subject in each instance to payment of the Libor Breakage Fee. 
  
 Section 2.7 Release of Properties. Except as set forth in this
Section 2.7 or in Section 3.3(3), no repayment or prepayment of all or any portion of the Notes shall cause, give rise to a right to require, or otherwise result in, the release of the Lien of the applicable Mortgage or any other Loan
Document on any Individual Property or other collateral securing the Loans. 
  
 (1) Immediate Release Properties. At any time on or prior to December 31, 2003, the Borrowers on one or more occasions may obtain and the Administrative Agent and Lenders shall take such actions as are
necessary to effectuate pursuant to this Section 2.7(1): (a) the release of any Immediate Release Property from the Lien of the Mortgage thereon (and related Loan Documents), (b) the release of the Borrowers’ obligations under the Loan
Documents with respect to such Immediate Release Property (other than those expressly stated to survive payment of the Release Amount and the release of the Mortgage thereon, including, but not limited to, those obligations set forth in the
Hazardous Materials Indemnity Agreement), and (c) the release of any funds in the Tax and Insurance Reserve or any of the Reserves, to the extent such funds are related or allocated to such Immediate Release Property and have not been previously
disbursed, all upon the satisfaction by each Borrower of each of the following conditions to the satisfaction of the Administrative Agent: 
  
 (i) At the time of the notice from the Borrowers to the Administrative Agent of any Borrower’s desire to sell the Immediate Release
Property and pay the Release Amount and at the time of the sale of the Immediate Release Property and the tendering of the Release Amount, there shall exist no Event of Default or condition which, with the giving of notice from the Administrative
Agent to the Borrowers or the passage of time, or both, would constitute an Event of Default; 
  
 (ii) The Borrowers shall provide Administrative Agent with at least fifteen (15) Business Days’ prior written notice of the pending
sale of 

  

 -46- 

 
the Immediate Release Property and the partial prepayment of the Loans pursuant to this Section 2.7(1); 
  
 (iii) The Borrowers shall remit to the Administrative Agent
(on behalf of the Lenders) an amount equal to the Release Amount for the applicable Immediate Release Property; 
  
 (iv) The Borrowers shall pay to the Administrative Agent all sums, including, but not limited to, any Libor Breakage Fee and interest due
pursuant to Section 2.3(3) hereof and all other sums then due and payable under the Notes, this Agreement, the Mortgages and the other Loan Documents with respect to said Immediate Release Property; 
  
 (v) The Immediate Release Property is sold and transferred
from any Borrower to another Person which is not an Affiliate of any of the Borrowers, pursuant to a contract of sale that is a bona fide arm’s length contract, and the Borrowers shall provide Administrative Agent with true and correct copies,
certified by an officer of the transferring Borrower, of the contract of sale for said Immediate Release Property and the closing documents for the sale of said Immediate Release Property, including but not limited to a copy of the deed and the
closing statement; and 
  
 (vi) The Borrowers
shall submit to the Administrative Agent (on behalf of the Lenders), not less than ten (10) Business Days prior to the date of such release, a release of Lien (and related Loan Documents) for such Individual Property for execution by the
Administrative Agent. Such release shall be in proper form for recording in the jurisdiction in which the Immediate Release Property is located and shall be reasonably satisfactory to the Administrative Agent. In addition, the Borrowers shall
provide all other documentation the Administrative Agent reasonably requires to be delivered by the Borrowers in connection with such release, together with a Borrower’s certificate certifying that such documentation (A) will effect such
release in accordance with the terms of this Agreement, and (B) will not impair or otherwise adversely affect the Liens, security interests and other rights of the Administrative Agent or Lenders under the Loan Documents not being released (or as to
the parties to the Loan Documents and Properties subject to the Loan Documents not being released). 
  
 (2) Release of Other Properties. Subject to the limitation set forth in Section 2.3(3)(b)(ii) of this Agreement that
the Borrowers may not prepay greater than $200,000,000 of the Allocated Loan Amounts for any Individual Properties from prepayments relating to the sale or Rebranding Renovation of any Other Release Properties during the first Loan Year, at any time
on or prior to the Maturity Date, the Borrowers on one or more occasions may obtain and the Administrative Agent and Lenders shall take such actions as are necessary to effectuate pursuant to this Section 2.7(2): (a) the release of any Other
Release Property from the Lien of 

  

 -47- 

 
the Mortgage thereon (and related Loan Documents) in connection with either a sale of such Other Release Property to a third party unrelated to any of the
Borrowers or a Rebranding Renovation of such Other Release Property, (b) the release of a Borrower’s obligations under the Loan Documents with respect to such Other Release Property (other than those expressly stated to survive payment of the
Release Amount and the release of the Mortgage thereon, including, but not limited to, those obligations set forth in the Hazardous Materials Indemnity Agreement), and (c) the release of any funds in the Tax and Insurance Reserve and any other
Reserve, to the extent such funds are related or allocated to such Other Release Property and have not been previously disbursed, all upon the satisfaction by the Borrowers of each of the following conditions to the satisfaction of the
Administrative Agent: 
  
 (i) At the time of the
notice from the Borrowers to the Administrative Agent of a Borrower’s desire to sell or conduct a Rebranding Renovation of the Other Release Property, as applicable, and at the time of the Release of the Other Release Property and the tendering
of the Release Amount, there shall exist no Event of Default or condition which, with the giving of notice from the Administrative Agent to the Borrowers or the passage of time, or both, would constitute an Event of Default; 
  
 (ii) The Borrowers shall provide Administrative Agent with
at least fifteen (15) days prior written notice of the pending sale or Rebranding Renovation, as applicable, of the Other Release Property and the partial prepayment of the Loans pursuant to this Section 2.7(2); 
  
 (iii) The Borrowers shall remit to the Administrative Agent
(on behalf of the Lenders) an amount equal to the Release Amount for the applicable Other Release Property; 
  
 (iv) The Borrowers shall pay to the Administrative Agent all sums, including, but not limited to, any Libor Breakage Fee, any Standard
Prepayment Fee and all interest due pursuant to Section 2.3(3) hereof and all other sums then due and payable under the Notes, this Agreement, the Mortgages and the other Loan Documents with respect to said Other Release Property; 

 
 (v) If the Other Release Property is not being Released
in connection with a Rebranding Renovation, such Other Release Property shall be sold and transferred from a Borrower to another Person, which is not an Affiliate of any of the Borrowers, pursuant to a contract of sale that is a bona fide arm’s
length contract, and the transferring Borrower shall provide Administrative Agent with true and correct copies, certified by an officer of such Borrower, of the contract of sale for said Other Release Property and the closing documents for the sale
of said Other Release Property, including but not limited to the deed and the closing statement; 
  

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 (vi) The Borrowers shall submit to the Administrative Agent (on behalf of the Lenders),
not less than ten (10) Business Days prior to the date of such release, a release of Lien (and related Loan Documents) for such Other Release Property for execution by the Administrative Agent. Such release shall be in proper form for recording in
the jurisdiction in which the Other Release Property is located and shall be reasonably satisfactory to the Administrative Agent. In addition, the Borrowers shall provide all other documentation the Administrative Agent reasonably requires to be
delivered by the Borrowers in connection with such release, together with a Borrower’s certificate certifying that such documentation (A) will effect such release in accordance with the terms of this Agreement, and (B) will not impair or
otherwise adversely affect the Liens, security interests and other rights of the Administrative Agent or Lenders under the Loan Documents not being released (or as to the parties to the Loan Documents and Properties subject to the Loan Documents not
being released); 
  
 (vii) After giving effect
to the partial prepayment of the Loans in an amount equal to the Release Amount and the release of the Mortgages and other Loan Documents encumbering the Other Release Property being sold, the DSCR for all of the remaining Properties shall be
greater than or equal to 1.50:1; 
  
 (viii)
Following the Release of the Other Release Property (or Properties) in question and the payment of the Release Amount, the outstanding principal balance of the Loans shall be greater than or equal to $30,000,000 and there shall be at least four (4)
remaining Individual Properties owned by the Borrowers and encumbered by the Mortgages securing the Loans. If the outstanding principal balance of the Loans following such prepayment is less than $30,000,000 or if there are four or fewer Individual
Properties then owned by the Borrowers and encumbered by the Mortgages securing the Loans, the Administrative Agent (on behalf of the Lenders) may, in its sole and absolute discretion, accelerate the Loans and require the Borrowers to repay the
Loans in full, together with all applicable Prepayment Fees as a condition to the release of the Mortgage encumbering the Other Release Property being sold by any Borrower. 
  
 (3) Release of Certain Borrowers; Payment in Full. 
  
 (a) In the event that all of the Individual Properties owned
by any Borrower have been Released pursuant to the terms of Section 2.7 hereof, then (i) such Borrower shall be released from its obligations under the Notes and the other Loan Documents and (ii) the Stock Pledges or Membership Pledges, as
applicable, relating to such Borrower and any applicable Operator shall also be released (but only if such Stock Pledges or Membership Pledges do not also relate to any other Borrowers who remain liable under the Notes and the other Loan 

  

 -49- 

 
Documents or to any Operators who remain liable under any other Loan Document). In connection with any such release of a Borrower or any Stock Pledges or
Membership Pledges relating to such Borrower, the Borrowers shall submit to the Administrative Agent proper release documentation for execution by the Administrative Agent. All reasonable costs and expenses associated with the Administrative
Agent’s review, execution and delivery of such documentation shall be borne by the Borrowers. 
  
 (b) The Administrative Agent shall, upon the written request and at the expense of the Borrowers, upon payment in full of all principal
and interest on the Loans and all other amounts due and payable under the Loan Documents in accordance with the terms and provisions of the Notes and this Agreement, release the Liens of the Mortgages and all other security interests created by the
Loan Documents not theretofore released provided that the requirements of this Section have been satisfied. 
  
 (c) In connection with the release of the Liens and any other security interests created by the Loan Documents, the Borrowers shall submit
to the Administrative Agent, not less than fifteen (15) business days prior to the related payment date, a release of Lien (and related Loan Documents) for each Individual Property and other collateral for execution by the Administrative Agent. Such
release shall be in a form appropriate in each jurisdiction in which an Individual Property or other collateral is located and reasonably satisfactory to the Administrative Agent. In addition, the Borrowers shall provide all other documentation the
Administrative Agent reasonably requires to be delivered by any Borrower in connection with such release. 
  
 (4) Allocated Loan Amounts and Percentages; Revised Exhibit E. 
  
 (a) Upon any Release of an Individual Property, the
Allocated Loan Amounts and Allocated Percentage for the remaining Properties shall be recalculated as follows and in the following order of priority: 
  
 (i) For an Immediate Release Property, the Release Amount shall be applied to reduce the Allocated Loan Amount for such Immediate Release
Property to zero. 
  
 (ii) For an Other Release
Property, a portion of the Release Amount equal to 100% of the Allocated Loan Amount for such Other Release Property shall be applied to reduce the Allocated Loan Amount for such Other Release Property to zero. 
  
 (iii) The Administrative Agent shall recalculate the
Allocated Percentage for each remaining Individual Property to a fraction, the numerator of which is the Allocated Loan Amount for such Individual Property and the denominator of which is the aggregate outstanding principal amount of the Loans.

  

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 (iv) For an Other Release Property, if any Tarsadia Properties are then subject to the
lien hereof, any remaining portion of the Release Amount shall be applied to reduce the Allocated Loan Amounts of such Tarsadia Properties on a pro rata basis in accordance with their respective Allocated Percentages, until the Allocated Loan Amount
of each Tarsadia Property has been reduced to zero. 
  
 (v) If any portion of the Release Amount has been applied to reduce the Allocated Loan Amounts of any Tarsadia Properties pursuant to preceding clause (iv), the Administrative Agent shall recalculate the Allocated Percentage for each
remaining Individual Property to a fraction, the numerator of which is the Allocated Loan Amount for such Individual Property and the denominator of which is the aggregate outstanding principal amount of the Loans. 
  
 (vi) If any portion of the Release Amount remains after
giving effect to the preceding clauses of this Section 2.7(4), such remaining portion shall be applied to reduce the Allocated Loan Amounts for all of the remaining Properties on a pro rata basis in accordance with their respective Allocated
Percentages. 
  
 (vii) The Administrative Agent
shall recalculate the Allocated Loan Amounts for all of the remaining Properties to account for the prepayments specified in this subsection. 
  
 (b) In connection with any Release of fewer than all of the Properties, the Administrative Agent shall prepare a revised Exhibit E
to this Agreement which reflects the revised Allocated Percentages and revised Allocated Loan Amounts as calculated pursuant to subsection (a) and shall distribute such revised schedule to the Borrowers and Lenders. Such revised exhibit shall,
absent manifest error, be conclusive evidence of the revised Allocated Percentages and revised Allocated Loan Amounts and shall be binding upon the parties hereto without the necessity of any formal amendment or other writing. 
  
 Section 2.8 Extension of Loan Terms and Maturity. 

 
 (1) The Borrowers shall have a one-time right to extend
the Maturity Date of the Loans to September 1, 2008. Such extension right (the “Extension Right”) may only be exercised in strict compliance with the provisions of this Section. 
  
 (2) If the Borrowers elect to extend the Maturity Date as
set forth in this Section, they shall give prior written notice of such election to the Administrative Agent. Such notice must be received by the Administrative Agent not earlier than one hundred twenty (120) days prior to the Maturity Date nor
later than thirty (30) days prior to the Maturity Date. 
  
 (3) The Borrowers’ right to exercise the Extension Right shall be expressly conditioned upon satisfaction of each of the following conditions precedent (it being understood 

  

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that the term “Maturity Date” as used in this section shall mean the Maturity Date prior to the effectiveness of such extension):

  
 (a) On the date of such written election by
the Borrowers and on the Maturity Date, no Event of Default (or event or condition which with the giving of notice or the passage of time would constitute an Event of Default) shall have occurred and be continuing. 
  
 (b) On the date of such written election by the Borrowers
and on the Maturity Date, the Loan-to-Value Ratio shall be less than or equal to sixty-five percent (65%). 
  
 (c) Not later than thirty (30) days prior to the Maturity Date, the Borrowers shall have provided to the Administrative Agent a
Replacement Interest Rate Cap Agreement covering the period from the original Maturity Date to the Maturity Date as so extended. 
  
 (d) On or prior to the Maturity Date, the Borrowers shall pay to the Lenders a non-refundable extension fee in an amount equal to the
product of one fourth of one percent (0.25%) times the outstanding principal amount of the Loans as of the Maturity Date (the “Extension Fee”). 
  
 (e) On or prior to the Maturity Date, the Borrowers shall execute and deliver to the Administrative Agent
(i) a written certification stating that (A) no Event of Default has occurred and is continuing as of such date and as of the Maturity Date and (B) all of the representations and warranties of each Borrower contained in this Agreement and in the
other Loan Documents are true, complete and correct in all material respects as of such date and as of the Maturity Date (except as to such matters which by their nature can no longer be true as a result of the passage of time and not as a result of
any action or inaction by any Borrower) and (ii) such other agreements, title insurance endorsements, legal opinions or other items as may be reasonably requested by the Administrative Agent on behalf of the Lenders in connection with such
extension. It is understood that if applicable state and local title insurance requirements so allow, the Administrative Agent will accept one or more endorsements to the Title Policy, without requiring the Borrowers to obtain new policies of title
insurance in connection with such extension, if such endorsements would provide the same substantive coverage to the Administrative Agent with respect to the extended maturity date of the Loans. 
  
 (f) On or prior to the Maturity Date, the Borrowers shall
pay all expenses incurred by the Administrative Agent and the Lenders in connection with such extension, including, but not limited to, title search fees, title insurance or endorsement premiums, legal fees and expenses, due diligence fees, and
consultant’s fees. 
  

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 Section 2.9 Standard Earnout Advances. 
  
 (1) At any time during the first two Loan Years, the
Borrowers on one or more occasions may request and the Lenders shall make Standard Earnout Advances of additional principal amounts under the Loans upon the terms and conditions set forth in this Section 2.9 and upon the satisfaction by the
Borrowers of each of the following conditions to the satisfaction of the Administrative Agent and the Lenders: 
  
 (a) The Borrowers shall request in writing to the Administrative Agent each Standard Earnout Advance at least thirty (30) days prior to
the proposed date of the Standard Earnout Advance. The Borrowers’ written request must include the amount of the Standard Earnout Advance requested by the Borrowers; 
  
 (b) At the time of the notice from the Borrowers to the Administrative Agent of the Borrowers’ request
for a Standard Earnout Advance and at the time of the Standard Earnout Advance, there shall exist no Event of Default or condition which, with the giving of notice from the Administrative Agent to the Borrowers or the passage of time, or both, would
constitute an Event of Default; 
  
 (c) After
giving effect to the requested Standard Earnout Advance, the DSCR for all of the remaining Properties shall be greater than or equal to 1.50:1; 
  
 (d) After giving effect to the requested Standard Earnout Advance, the Loan-to-Value Ratio shall not exceed the Maximum Loan-to-Value
Ratio; 
  
 (e) No Standard Earnout Advances will
be made after the last day of the second Loan Year, and there shall be no more than two Standard Earnout Advances in any one Loan Year and no more than four Standard Earnout Advances in total; 
  
 (f) The maximum amount of all Standard Earnout Advances (in
the aggregate) made by the Lenders shall be $40,000,000, and the maximum principal amount of the Loans, including all Standard Earnout Advances shall be $399,500,000; provided, however, that (i) the maximum amount of all Standard Earnout Advances
(in the aggregate) shall be reduced to $20,000,000, if Borrower has completed Releases of Other Release Properties pursuant to Section 2.7(2) of this Agreement (or has given notice to the Administrative Agent of the pending release of an
Other Release Property pursuant to Section 2.7(2) of this Agreement) which in the aggregate (A) will exceed $100,000,000 of the Allocated Loan Amounts of all of such Other Release Properties but (B) will be equal to or less than $200,000,000
of the Allocated Loan Amounts of all of such Other Release Properties and (ii) no further Standard Earnout Advances shall be available to any Borrower hereunder, and neither the Administrative Agent nor any of the Lenders shall have any further
obligation to fund Standard Earnout Advances, if Borrower has completed Releases of Other Release Properties pursuant to Section 2.7(2) of this Agreement (or has given notice to the Administrative Agent of the pending release of an Other
Release Property pursuant to Section 2.7(2) of this Agreement) which in the aggregate will exceed $200,000,000 of the Allocated Loan Amounts of all of such Other Release 

  

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Properties. Notwithstanding the foregoing limitations upon the amount of Standard Earnout Advances, in the event the Lenders make Standard Earnout Advances
in the aggregate in excess of $20,000,000 and, subsequent to making such Standard Earnout Advances, the Borrowers complete Releases of Other Release Properties (in accordance with the terms of Section 2.7(2)) in excess of $100,000,000 of the
Allocated Loan Amounts, in no event shall the Borrowers be obligated to return or refund such Standard Earnout Advances, except as otherwise provided in accordance with the terms and conditions of the Loan Documents for the repayment by the
Borrowers of the Loans and all Standard Earnout Advances. 
  
 (g) No Standard Earnout Advance shall be made in an amount less than $5,000,000, and all Standard Earnout Advances in an amount greater than $5,000,000 shall be in increments of $1,000,000; 
  
 (h) Each Standard Earnout Advance shall be deemed to be an
increase in the outstanding principal amount of the Loans and shall be on all of the same terms and conditions as the Loans, including but not limited to the Interest Rate, the Interest Period, the Maturity Date, and the collateral therefor;

  
 (i) The Mortgages and the other Loan
Documents shall secure each Standard Earnout Advance as if the Standard Earnout Advance was made on the Closing Date; 
  
 (j) At least thirty (30) days prior to each Standard Earnout Advance, the Borrowers shall provide to the Administrative Agent a title
search for substantially all of Individual Properties (and at least fifteen (15) days prior to each Standard Earnout Advance, the Borrowers shall provide to the Administrative Agent a title update for all of Individual Properties) confirming that
there are no new or additional liens or encumbrances affecting each Individual Property other than the Permitted Encumbrances; 
  
 (k) If requested by the Administrative Agent on behalf of the Lenders, the Borrowers shall provide to the Administrative Agent a date-down
endorsement to each Title Policy insuring the Mortgages, which date-down endorsements increase the amount of the Title Policy to reflect the Standard Earnout Advance, insure that there are no new or additional liens or encumbrances affecting each
Individual Property other than the Permitted Encumbrances, and change the effective date of each Title Policy (provided that if applicable state and local title insurance requirements so allow, the Administrative Agent will accept endorsements which
do not change the effective date of the Title Policy if the cost to do so would be materially greater than not changing such effective date and if such endorsements would provide the same substantive coverage to the Administrative Agent with respect
to the increased outstanding amount of the Loans); 
  
 (l) At least thirty (30) days prior to each Standard Earnout Advance, the Borrowers shall provide to the Administrative Agent certified financial statements 

  

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for each Borrower and operating statements for each Individual Property for the immediately preceding twelve month period and such other financial
information as the Administrative Agent may request in order to determine the DSCR and the Loan-to-Value Ratio; 
  
 (m) If requested by the Administrative Agent on behalf of the Lenders, the Borrowers shall execute and deliver to the Administrative Agent
and the Lenders any modification agreements amending and modifying the Mortgages and other Loan Documents to reflect the Standard Earnout Advance; provided, however, such modification agreements shall not impose any material additional liability
upon the Borrowers, other than the liability to repay the Standard Earnout Advance in question. 
  
 (n) The Borrowers shall pay all reasonable expenses incurred by the Administrative Agent and the Lenders in connection with each Standard
Earnout Advance, including, but not limited to, title search fees, title insurance or endorsement premiums, legal fees and expenses, due diligence fees, and consultant’s fees; and 
  
 (o) The Borrowers shall pay to the Administrative Agent on behalf of the Lenders an administrative fee equal
to the product of the amount of the requested Standard Earnout Advance and one-tenth of one percent (.10%). 
  
 (2) Each Standard Earnout Advance shall have the effect of increasing the Allocated Loan Amounts for each Individual Property by an amount
equal to the product of (a) the then-current Allocated Percentage for such Individual Property and (b) the amount of the Standard Earnout Advance. After each Standard Earnout Advance is made, the Administrative Agent shall prepare a revised
Exhibit E to this Agreement which reflects the revised Allocated Loan Amounts as calculated pursuant to this subsection and shall distribute such revised schedule to the Borrowers and Lenders. Such revised exhibit shall, absent manifest
error, be conclusive evidence of the revised Allocated Loan Amounts and shall be binding upon the parties hereto without the necessity of any formal amendment or other writing. 
  
 (3) In the event that any Lender fails to make its proportionate share of a Standard Earnout Advance when
required under the terms hereof, the Administrative Agent shall advance such funds on behalf of the non-advancing Lender. In such an event, the Commitment of the non-advancing Lender shall be reduced by the amount of the funds which it has failed to
advance and the Commitment of the Administrative Agent shall be increased by the amount of funds which it advances on behalf of such non-advancing Lender. 
  
 Section 2.10 Special Earnout Advances. 
  
 (1) Within thirty (30) days after a Special Earnout Calculation Date, so long as the aggregate principal amount advanced by Lenders and
outstanding under the Loans is less than the Special Earnout Valuation Limit, the Borrowers may request and the Lenders shall make Special Earnout Advances of additional principal amounts under the Loans upon the terms and 

  

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conditions set forth in this Section 2.10 and upon the satisfaction by the Borrowers of each of the following conditions to the satisfaction of the
Administrative Agent and the Lenders: 
  
 (a) The
Borrowers shall request in writing that the Administrative Agent make a Special Earnout Advance on a date not earlier than thirty (30) days after the date of such written request but not later than sixty (60) days after the applicable Special
Earnout Calculation Date. The Borrowers’ written request must include the amount of the Special Earnout Advance requested by the Borrowers; 
  
 (b) At the time of the notice from the Borrowers to the Administrative Agent of the Borrowers’ request for a Special Earnout Advance
and at the time of the Special Earnout Advance, there shall exist no Event of Default or condition which, with the giving of notice from the Administrative Agent to the Borrowers or the passage of time, or both, would constitute an Event of Default;

  
 (c) After giving effect to the requested
Special Earnout Advance, the aggregate principal amount advanced by Lenders and outstanding under the Loans shall be less than or equal to the Special Earnout Valuation Limit; 
  
 (d) No Special Earnout Advances will be made after the date that is sixty (60) days after the applicable
Special Earnout Calculation Date, and there shall be no more than two Special Earnout Advances during the term of the Loan; 
  
 (e) The maximum amount of all Special Earnout Advances (in the aggregate) made by the Lenders shall be $14,500,000, and the maximum
principal amount of the Loans, including all Special Earnout Advances shall be $399,500,000; 
  
 (f) No Special Earnout Advance shall be made in an amount less than $1,000,000, and all Special Earnout Advances shall be in increments of
$1,000,000; 
  
 (g) Each Special Earnout Advance
shall be deemed to be an increase in the outstanding principal amount of the Loans and shall be on all of the same terms and conditions as the Loans, including but not limited to the Interest Rate, the Interest Period, the Maturity Date, and the
collateral therefor; 
  
 (h) The Mortgages and
the other Loan Documents shall secure each Special Earnout Advance as if the Special Earnout Advance was made on the Closing Date; 
  
 (i) At least thirty (30) days prior to each Special Earnout Advance, the Borrowers shall provide to the Administrative Agent a title
search for substantially all of Individual Properties (and at least fifteen (15) days prior to each Special Earnout Advance, the Borrowers shall provide to the Administrative Agent a title update for all of Individual Properties) confirming that
there are no 

  

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new or additional liens or encumbrances affecting each Individual Property other than the Permitted Encumbrances; 
  
 (j) If requested by the Administrative Agent on behalf of
the Lenders, the Borrowers shall provide to the Administrative Agent a date-down endorsement to each Title Policy insuring the Mortgages, which date-down endorsements increase the amount of the Title Policy to reflect the Special Earnout Advance,
insure that there are no new or additional liens or encumbrances affecting each Individual Property other than the Permitted Encumbrances, and change the effective date of each Title Policy (provided that if applicable state and local title
insurance requirements so allow, the Administrative Agent will accept endorsements which do not change the effective date of the Title Policy if the cost to do so would be materially greater than not changing such effective date and if such
endorsements would provide the same substantive coverage to the Administrative Agent with respect to the increased outstanding amount of the Loans); 
  
 (k) At least thirty (30) days prior to each Special Earnout Advance, the Borrowers shall provide to the Administrative Agent certified
financial statements for each Borrower and operating statements for each Individual Property for the immediately preceding twelve month period and such other financial information as the Administrative Agent may request in order to determine the
Special Earnout Valuation Maximum, and the Administrative Agent shall have approved the amount of the Special Earnout Advance in accordance with the provisions of subsection (3) of this Section 2.10; 
  
 (1) If requested by the Administrative Agent on behalf of
the Lenders, the Borrowers shall execute and deliver to the Administrative Agent and the Lenders any modification agreements amending and modifying the Mortgages and other Loan Documents to reflect the Special Earnout Advance; provided, however,
such modification agreements shall not impose any material additional liability upon the Borrowers, other than the liability to repay the Special Earnout Advance in question; 
  
 (m) The Borrowers shall pay all reasonable expenses incurred by the Administrative Agent and the Lenders in
connection with each Special Earnout Advance, including, but not limited to, title search fees, title insurance or endorsement premiums, legal fees and expenses, due diligence fees, and consultant’s fees; and 
  
 (n) The Borrowers shall pay to the Administrative Agent on
behalf of the Lenders an administrative fee equal to the product of the amount of the requested Special Earnout Advance and one-tenth of one percent (.10%). 
  
 (2) Each Special Earnout Advance shall have the effect of increasing the Allocated Loan Amounts for each Individual Property by an amount
equal to the product of (a) the then-current Allocated Percentage for such Individual Property and (b) the amount of the Special Earnout Advance. After each Special Earnout Advance is made, the Administrative 

  

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Agent shall prepare a revised Exhibit E to this Agreement which reflects the revised Allocated Loan Amounts as calculated pursuant to this subsection
and shall distribute such revised schedule to the Borrowers and Lenders. Such revised exhibit shall, absent manifest error, be conclusive evidence of the revised Allocated Loan Amounts and shall be binding upon the parties hereto without the
necessity of any formal amendment or other writing. 
  
 (3) Prior to and as a condition of funding any Special Earnout Advance, the Administrative Agent shall have the right to verify the Special Earnout Valuation Limit and the amount of the Special Earnout Advance requested by the Borrowers and
to confirm, in the exercise of the Administrative Agent’s sole and absolute discretion, that the amounts represented thereby have not been affected by nonrecurring events or charges, temporary reductions in Operating Expenses or other one-time
or temporary events, or other factors that would reasonably be expected to cause the Trailing Twelve-Month NOI not to represent, on a going-forward basis, a reasonably accurate measure of the valuation of the Properties. In the event that the
Administrative Agent determines, in its sole and absolute discretion, that the Special Earnout Valuation Limit should be reduced in order to more accurately reflect such conditions, the amount of the Special Earnout Advance shall be similarly
reduced. 
  
 (4) In the event that any Lender
fails to make its proportionate share of a Special Earnout Advance when required under the terms hereof, the Administrative Agent shall advance such funds on behalf of the non-advancing Lender. In such an event, the Commitment of the non-advancing
Lender shall be reduced by the amount of the funds which it has failed to advance and the Commitment of the Administrative Agent shall be increased by the amount of funds which it advances on behalf of such non-advancing Lender. 
  
 ARTICLE III 
  
 INSURANCE, CONDEMNATION, RESERVES AND CASH MANAGEMENT 
  
 Section 3.1 Insurance. (1) The Borrower shall obtain and maintain, or cause to be maintained, insurance for
each Borrower and each of the Individual Properties providing at least the following coverages: 
  
 (a) comprehensive all risk property insurance on the Improvements and the Personalty, insuring against loss or damage to such Individual
Property by fire and other “extended coverage” risks of physical loss, including contingent liability from “Operation of Building Laws,” in each case (i) in an amount equal to one hundred percent (100%) of the “Full
Replacement Cost,” which for purposes of this Agreement shall mean actual replacement value (exclusive of costs of land, excavations, foundations, underground utilities and footings) with a waiver of depreciation together with endorsements for
“Demolition Costs” and “Increased Costs of Construction” with each such endorsement having a $5,000,000 sublimit per occurrence, (ii) containing an agreed amount endorsement with respect to the Improvements and Personalty waiving
all co-insurance provisions; (iii) providing for no deductible in excess of Fifty Thousand Dollars ($50,000) for all such insurance coverage; and (iv) containing an “Ordinance or Law Coverage” or “Enforcement” endorsement if any
of the 

  

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Improvements or the use of the Individual Property shall at any time constitute legal non-conforming structures or uses. Except as expressly provided in
Section 3.1(l)(k) of this Agreement, such policy may not include any exclusion for acts of terrorism. In addition, the Borrowers shall obtain: (A) if any portion of the Improvements is currently or at any time in the future located in a
federally designated “special flood hazard area”, flood hazard insurance in an amount equal to the lesser of (I) the outstanding principal balance of the Notes allocated to the applicable Individual Property or (II) the maximum amount of
such insurance available under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended or such greater amount as the Administrative Agent shall
require; and (B) earthquake insurance in amounts and in form and substance satisfactory to the Administrative Agent in the event the Individual Property is located in an area with a high degree of seismic activity, provided that the insurance
pursuant to clauses (A) and (B) hereof shall be on terms consistent with the comprehensive all risk insurance policy required under this subsection (a). With respect to the earthquake insurance referred to in clause (B) hereof, the Borrowers shall
at all times be required to maintain such coverage on Improvements located in San Diego, California or Salt Lake City, Utah; the Borrowers shall be required to maintain such coverage on Improvements located in other areas only to the extent such
coverage may be obtained at commercially reasonable premium rates. 
  
 (b) commercial general liability insurance against claims for personal injury, bodily injury, death or property damage liability occurring upon, in or about the Individual Property, such insurance (i) to be on the
so-called “occurrence” form with a combined limit of not less than Two Million Dollars ($2,000,000) in the aggregate and One Million Dollars ($1,000,000) per occurrence (and, if on a blanket policy, containing an “Aggregate Per
Location” endorsement); (ii) to continue at not less than the aforesaid limit until required to be changed by the Administrative Agent in writing by reason of materially changed economic conditions making such protection inadequate, provided
that the Administrative Agent has required such change with respect to similar loans held or administered by the Administrative Agent; and (iii) to cover at least the following hazards: (A) premises and operations; (B) products and completed
operations on an “if any” basis; (C) independent contractors; (D) blanket contractual liability for all legal contracts; and (E) contractual liability covering the indemnities contained in the Mortgages to the extent the same is available;

  
 (c) business income or interruption insurance
(i) with loss payable to the Administrative Agent (on behalf of the Lenders); (ii) covering all risks required to be covered by the insurance provided for in subsection (a) above; (iii) containing an extended period of indemnity endorsement which
provides that after the physical loss to the Improvements and Personalty has been repaired, the continued loss of income will be insured until such income either returns to the same level it was at prior to the loss, or the expiration of twelve (12)
months from the date that the Individual Property is repaired or replaced and operations are resumed, 

  

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whichever first occurs, and notwithstanding that the policy may expire prior to the end of such period; (iv) in an amount equal to one hundred percent (100%)
of the projected gross income from the Individual Property for a period of twelve (12) months from the date that the Individual Property is repaired or replaced and operations are resumed; and (v) providing for “extra expense” coverage in
an amount reasonably satisfactory to the Administrative Agent. The amount of such business income or interruption insurance shall be determined prior to the date hereof and at least once each year thereafter based on the Borrowers’ reasonable
estimate of the gross income from each Individual Property for the succeeding twelve (12) month period. If a Cash Trap Period has occurred and is continuing, all proceeds payable to the Administrative Agent pursuant to this subsection shall be
deposited into the Trapped Cash Account; otherwise, such proceeds shall be deposited into the applicable Operating Account upon the written request of the Borrowers; provided, however, if such insurance proceeds are disbursed to the
Administrative Agent in an amount representing losses for a period in excess of one (1) month, then such insurance proceeds shall be held by the Administrative Agent in an interest-bearing account and applied on a monthly basis in the amount
attributed to the related month by the insurance company providing such loss of rents and/or business income insurance. Nothing herein contained shall be deemed to relieve any Borrower of its obligations to pay the obligations secured by the Loan
Documents on the respective dates of payment provided for in the Notes and the other Loan Documents except to the extent such amounts are actually paid out of the proceeds of such business income insurance; 
  
 (d) at all times during which structural construction,
repairs or alterations are being made with respect to the Improvements by or on behalf of any Borrower at an Individual Property, and only if the Individual Property coverage form does not otherwise apply, (i) owner’s contingent or protective
liability insurance covering claims not covered by or under the terms or provisions of the above mentioned commercial general liability insurance policy; and (ii) the insurance provided for in subsection (a) above written in a so-called
builder’s risk completed value form (A) on a non-reporting basis, (B) against all risks insured against pursuant to subsection (a) above, (C) including permission to occupy the Individual Property, and (D) with an agreed amount endorsement
waiving co-insurance provisions; 
  
 (e) if any
Borrower has any employees, workers’ compensation subject to the statutory limits of the state in which the Individual Property is located, and employer’s liability insurance with a limit of at least One Million Dollars ($1,000,000) per
accident and per disease per employee, and One Million Dollars ($1,000,000) for disease aggregate in respect of any work or operations on or about the Individual Property, or in connection with the Individual Property or its operation (if
applicable); 
  
 (f) comprehensive boiler and
machinery insurance, if applicable, in amounts as shall be reasonably required by the Administrative Agent on terms 

  

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consistent with the commercial property insurance policy required under subsection (a) above; 
  
 (g) umbrella liability insurance in an amount not less than Fifty Million Dollars ($50,000,000) per
occurrence on terms consistent with the commercial general liability insurance policy required under subsection (b) above; 
  
 (h) motor vehicle liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits
per occurrence of One Million Dollars ($1,000,000); 
  
 (i) if any Borrower has any employees, insurance against employee dishonesty in an amount not less than one (1) month of gross revenue from such Individual Property with a deductible not greater than Fifty Thousand Dollars ($50,000);

  
 (j) upon sixty (60) days’ written
notice, such other reasonable insurance and in such reasonable amounts as the Administrative Agent from time to time may reasonably request against such other insurable hazards which at the time are commonly insured against for property similar to
the Individual Property located in or around the region in which the Individual Property is located; and 
  
 (k) notwithstanding the provisions of Section 3.1(l)(a) above that require that Borrowers’ comprehensive all risk property
insurance policy not to exclude from coverage terrorism events and that such policy therefore include 100% replacement cost insurance without co-insurance for damage to any Individual Property caused by terrorist activities and that such insurance
have a deductible of not more than the amount set forth in said Section 3.1(l)(a) (collectively, “Terrorism Insurance”), Administrative Agent, on behalf of the Lenders hereby agrees, solely for the benefit of Borrowers during
Borrowers’ ownership of the Properties and not for the benefit of any successor or assignee of Borrowers, during any period that the Terrorism Risk Insurance Act (“TRIA”) is in effect, Borrower shall be required to purchase
Terrorism Insurance so long as the same can be obtained at Commercially Reasonable Rates. If TRIA is no longer in effect, then for a period of 12 months from the date TRIA expires, in the event Borrowers’ existing comprehensive all risk
property insurance policy is renewed by the current insurer or a new policy is obtained upon expiration of the existing policy and such renewal or new policy does not include or specifically excludes Terrorism Insurance or contains any material
modification of the Terrorism Insurance requirements set forth above, Borrowers will be required to use “commercially reasonable efforts” (as defined below) to either purchase at Commercially Reasonable Rates a rider or a separate
insurance policy providing for Terrorism Insurance. Such policy and the insurer must in all respects be satisfactory to Administrative Agent. Should the commercial mortgage lending environment relating to Terrorism Insurance and the insurance
environment for obtaining Terrorism Insurance at the expiration of the 12-month period be substantially similar to the lending and insurance environment on the date TRIA 

  

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expires, then Administrative Agent will reasonably consider extending this provision for an additional 12 month period or successive additional 12 month
periods should lending and insurance conditions so warrant. 
  
 As used in this Section, “Commercially Reasonable Rates” shall mean a rate, for the Terrorism Insurance portion of Borrowers’ insurance policy only, that is equal to or less than 50% of the total cost of the remaining
portion of the all-risk policy that will then co-exist with the Terrorism Insurance at the time the Terrorism Insurance is considered for purchase (the “Fifty Percent Rate”). As used in this Section, “commercially reasonable
efforts” shall mean that Borrowers have obtained and provided to Administrative Agent written quotes for Terrorism Insurance from at least three (3) insurers each calendar quarter during any period that Terrorism Insurance for the Properties is
not in place. 
  
 If after using commercially reasonable efforts,
Borrowers are unable to obtain 100% replacement cost Terrorism Insurance at Commercially Reasonable Rates, then unless Administrative Agent in its sole discretion approves otherwise, Borrowers will use commercially reasonable efforts to purchase the
maximum amount of Terrorism Insurance as may be then available at a premium which is equal to the Fifty Percent Rate, provided the amount of such coverage would be for at least $50,000,000 (the “TIC Amount”). Should Borrowers, after
using commercially reasonable efforts, be unable to purchase at least the TIC Amount of coverage of Terrorism Insurance at a cost equal to or less than the Fifty Percent Rate, then Borrower shall provide written notice thereof to the Administrative
Agent. In such event, the Borrower shall have the right, exercisable by delivering a written notice signed by the Borrowers and the Guarantor within ten (10) Business Days of the lapse of such coverage, to cause Guarantor to indemnify the
Administrative Agent and the Lenders, on a full recourse basis, for any and all Losses, up to an aggregate limit of $10,000,000, which they may incur or suffer which would have been covered by Terrorism Insurance had such coverage been in effect. In
the event the Borrowers and Guarantor fail to timely deliver such notice, the Administrative Agent shall have the right (but not the obligation) to force place at least $10,000,000 of coverage of Terrorism Insurance for the Properties, and Borrowers
agree to promptly reimburse Administrative Agent for the actual premium costs of such force-placed Terrorism Insurance up to an amount equal to the Fifty Percent Rate (it being understood that Borrower shall not be required to reimburse the
Administrative Agent for said Terrorism Insurance premiums if at any time during the term of the Loan the Borrowers or the Administrative Agent learns that the amount of Terrorism Insurance coverage obtained by the Administrative Agent for a premium
in an amount equal to the Fifty Percent Rate is less than $10,000,000). If no Terrorism Insurance is placed by Borrowers or Administrative Agent on the Properties, then if at any time during the Loan term, the TIC Amount of Terrorism Insurance
becomes available at Commercially Reasonable Rates, Borrowers shall be required to purchase such Terrorism Insurance. 
  

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 (2) All insurance provided for in Section 3.1(1) shall be obtained under valid and
enforceable policies (collectively, the “Policies” or in the singular, the “Policy”), and shall, to the extent not specified above, be subject to the reasonable approval of the Administrative Agent as
to insurance companies, amounts, deductibles, loss payees and insureds. The Policies shall be issued by financially sound and responsible insurance companies authorized to do business in the state in which the Properties are located with a rating of
“A-X” or better as established by Best’s Rating Guide and having a claims paying ability rating of “A-” (or the comparable rating) or better by at least two (2) of the Rating Agencies (one of which shall be (a) S&P if
S&P is rating the securities issued in any Secondary Market Transaction of which all or any portion of this Loan is a part, and (b) Moody’s if Moody’s is rating the securities issued in any Secondary Market Transaction of which all or
any portion of this Loan is a part). Not less than ten (10) days prior to the expiration dates of the Policies theretofore furnished to the Administrative Agent, certificates of insurance evidencing the Policies accompanied by evidence satisfactory
to the Administrative Agent of payment of the premiums due thereunder (the “Insurance Premiums”), shall be delivered by the Borrowers to the Administrative Agent; provided, however, the Borrowers shall not be required to
deliver evidence of the payment of Insurance Premiums if they have deposited sufficient funds in the Tax and Insurance Reserve to enable the Administrative Agent to pay such Insurance Premiums. 
  
 (3) The Borrowers may obtain a blanket insurance policy with
respect to the Properties which satisfies all of the requirements contained herein. Any blanket insurance Policy shall specifically allocate to the Individual Property the amount of coverage from time to time required hereunder and shall otherwise
provide the same protection as would a separate Policy insuring only the Individual Property in compliance with the provisions of Section 3.1(1), including an acknowledgement that the payment of the premium allocated to the Individual
Property shall continue such Policy as to the Individual Property notwithstanding any other payment of premiums. 
  
 (4) All Policies of insurance provided for or contemplated by Section 3.1(1), except for the Policy referenced in Section
3.1(1)(e), shall name the applicable Borrower as the insured and the Administrative Agent as the additional insured (on behalf of the Lenders), as its interests may appear, and in the case of property damage, boiler and machinery, flood and
earthquake insurance, shall contain a so-called New York standard non-contributing mortgagee clause in favor of the Administrative Agent providing that the loss thereunder shall be payable to the Administrative Agent (on behalf of the Lenders).

  
 (5) All Policies of insurance provided for in
Section 3.1(1) shall contain clauses or endorsements to the effect that: 
  
 (a) no act or negligence of any Borrower, or anyone acting for any Borrower, or of any tenant or other occupant, or failure to comply with
the provisions of any Policy, which might otherwise result in a forfeiture of the insurance or any part thereof, shall in any way affect the validity or enforceability of the insurance insofar as the Administrative Agent or Lenders are concerned;

  

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 (b) the Policy shall not be materially changed (other than to increase the coverage
provided thereby) or canceled without at least thirty (30) days’ written notice to the Administrative Agent; 
  
 (c) each Policy shall provide that the issuers thereof shall give written notice to the Administrative Agent if the Policy has not been
renewed fifteen (15) days prior to its expiration; and 
  
 (d) The Administrative Agent and Lenders shall not be liable for any Insurance Premiums thereon or subject to any assessments thereunder. 
  
 (6) If at any time the Administrative Agent is not in receipt of written evidence that all insurance required hereunder is in full force
and effect, the Administrative Agent shall have the right, on the first Business Day following written notice to the Borrowers, to obtain such insurance coverage as the Administrative Agent reasonably deems appropriate and all premiums incurred by
the Administrative Agent in connection with obtaining such insurance and keeping it in effect shall be paid by the Borrowers to the Administrative Agent upon written demand and until paid shall be secured by the Mortgages and shall bear interest at
the highest Default Rate then applicable to any of the Notes. 
  
 (7) If an Individual Property shall be damaged or destroyed, in whole or in part, by fire or other casualty, the Borrowers shall give prompt notice of such damage to the Administrative Agent and shall promptly
commence and diligently prosecute the completion of the Restoration of the Individual Property and otherwise in accordance with Section 3.3 hereof. The Borrowers shall pay all costs of such Restoration whether or not such costs are covered by
insurance. The Administrative Agent may, but shall not be obligated to make proof of loss if not made promptly by the Borrowers. 
  
 (8) In the event of foreclosure of a Mortgage with respect to an Individual Property, or other transfer of title to an Individual Property
in extinguishment in whole or in part of the Indebtedness all right, title and interest of the Borrowers in and to the Policies that are not blanket Policies then in force concerning the Individual Property and all proceeds payable thereunder
(including proceeds payable under blanket policies which relate to the Individual Property) shall thereupon vest in the purchaser at such foreclosure or the Administrative Agent or other transferee in the event of such other transfer of title.

  
 Section 3.2 Condemnation Awards. Each Borrower
shall promptly give the Administrative Agent notice of the actual or threatened commencement of any condemnation or eminent domain proceeding (a “Condemnation”) affecting any Individual Property and shall deliver to the
Administrative Agent copies of any and all papers served in connection with such proceedings. So long as no Event of Default has occurred, the Borrowers shall be entitled to negotiate and settle any Condemnation proceedings which involve claims of
less than the Condemnation Limit and which do not have a material adverse effect on parking, access or Improvements at any Individual Property without obtaining the prior consent of the Administrative Agent. If an Event of Default has occurred, or
if the Condemnation involves a claim equal to or greater than the Condemnation Limit and would have a material adverse effect on parking, access or Improvements at any Individual Property, the Administrative Agent may 

  

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participate in any such negotiations and proceedings and the reasonable out-of-pocket costs of the Administrative Agent with respect thereto shall be at the
expense of the Borrowers and the Borrowers shall deliver to the Administrative Agent all instruments required to permit participation in such negotiations and proceedings. Each Borrower shall, at its expense, diligently prosecute any such
proceedings, and shall consult with the Administrative Agent, its attorneys and experts, and cooperate with them in the carrying on or defense of any such proceedings (subject, however, to the Borrower’s rights to negotiate and settle certain
claims without the consultation of the Administrative Agent as set forth above). The Administrative Agent is hereby irrevocably appointed as each Borrower’s attorney-in-fact, coupled with an interest, with exclusive power to collect, receive
and apply any award consistent with the Loan Documents and, upon any Borrower’s failure to diligently prosecute a claim for an Award, to make any compromise or settlement in connection with any such Condemnation. Notwithstanding any taking by
any public or quasi-public authority through eminent domain or otherwise (including but not limited to any transfer made in lieu of or in anticipation of the exercise of such taking), the Borrowers shall continue to pay the Indebtedness at the time
and in the manner provided for its payment in the Notes and in this Agreement and the Indebtedness shall not be reduced until any award or payment therefor (an “Award”) shall have been actually received and applied by the
Administrative Agent, after the deduction of reasonable out-of-pocket expenses of collection not previously paid by the Borrowers, to the reduction or discharge of the Indebtedness. The Administrative Agent shall not be limited to the interest paid
on the Award by the condemning authority but shall be entitled to receive out of the Award interest at the rate or rates provided herein or in the Notes. If an Individual Property or any portion thereof is taken by a condemning authority, the
Borrowers shall promptly commence and diligently prosecute the Restoration of the Individual Property and otherwise comply with the provisions of Section 3.3 hereof. If an Individual Property is sold, through foreclosure or otherwise, prior
to the receipt by the Administrative Agent of the Award, the Administrative Agent shall have the right, whether or not a deficiency judgment on the Notes shall have been sought, recovered or denied, to receive the Award, or a portion thereof
sufficient to pay the Indebtedness. 
  
 Section 3.3
Restoration. The following provisions shall apply in connection with the Restoration of any Individual Property: 
  
 (1) If the Net Proceeds shall be less than the Funds Release Limit, and the costs of completing the Restoration shall be less than the
Funds Release Limit, such Net Proceeds will be disbursed by the Administrative Agent to the applicable Borrower upon receipt, provided that all of the conditions set forth in Section 3.3(2)(i) are met and such Borrower delivers to the
Administrative Agent a written undertaking to expeditiously commence and to satisfactorily complete with due diligence the Restoration in accordance with the terms of this Agreement. 
  
 (2) If the Net Proceeds are equal to or greater than the Funds Release Limit or the cost of completing the
Restoration is equal to or greater than the Funds Release Limit, the Administrative Agent shall make the Net Proceeds available for the Restoration in accordance with the provisions of this Section 3.3. The term “Net
Proceeds” for purposes of this Section 3.3 shall mean: (a) the net amount of all insurance proceeds received by the Administrative Agent pursuant to Section 3.1 (l)(a), (d) and (f) as a result of such damage or
destruction, after deduction of its reasonable out-of-pocket costs and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Insurance Proceeds”), or (b) the net 

  

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amount of the Award, after deduction of its reasonable out-of-pocket costs and expenses (including, but not limited to, reasonable counsel fees), if any, in
collecting same (“Condemnation Proceeds”), whichever the case may be. 
  
 (i) The Net Proceeds shall be made available to the Borrowers for Restoration provided that the Net Proceeds are received at least one
hundred eighty (180) days prior to the Maturity Date and each of the following conditions are met: 
  
 (A) no Event of Default shall have occurred and be continuing; 
  
 (B) (I) in the event the Net Proceeds are Insurance Proceeds, less than sixty percent (60%) of the total
floor area of the Improvements of the Individual Property have been damaged, destroyed or rendered unusable as a result of such fire or other casualty or (II) in the event the Net Proceeds are Condemnation Proceeds, less than twenty-five percent
(25%) of the land constituting the Individual Property is taken, and such land is located along the perimeter or periphery of the Individual Property, and no portion of the Improvements is located in such land; 
  
 (C) the applicable Borrower shall commence the Restoration
as soon as reasonably practicable (but in no event later than ninety (90) days after such Net Proceeds have been received by the Administrative Agent or Borrower, as applicable) and shall diligently pursue the same to satisfactory completion;

  
 (D) the Administrative Agent shall be
satisfied that any operating deficits, including all scheduled payments of principal and interest under the Notes, which will be incurred with respect to the Individual Property as a result of the occurrence of any such fire or other casualty or
taking, whichever the case may be, will be covered out of (I) the Net Proceeds, (II) the insurance coverage referred to in Section 3.1(l)(c), if applicable, or (III) by other funds of the Borrowers; 
  
 (E) the Administrative Agent shall be reasonably satisfied
that the Restoration will be completed on or before the earliest to occur of (I) three (3) months prior to the Maturity Date, (II) such time as may be required under all Legal Requirements in order to repair and restore the Individual Property to
the condition it was in immediately prior to such fire or other casualty or to as nearly as possible the condition it was in immediately prior to such taking, as applicable or (III) the expiration of the insurance coverage referred to in Section
3.1(l)(c); 
  

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 (F) the Individual Property and the use thereof after the Restoration will be in
compliance with and permitted under all Legal Requirements and all necessary operating or reciprocal easement agreements for the operation and maintenance of the Individual Property (including, without limitation, the Franchise Agreement for such
Individual Property) are, or remain, in effect; 
  
 (G) the Restoration shall be done and completed by the Borrowers in an expeditious and diligent fashion and in compliance with all Legal Requirements (including, without limitation, all applicable Environmental Laws) and in compliance with
the plans and specifications that have been approved by the Administrative Agent and/or the Casualty Consultant; 
  
 (H) such fire or other casualty or taking, as applicable, does not result in either a loss of access to the Individual Property or the
related Improvements or a loss of a material portion of the parking spaces benefiting such Individual Property such that, following the loss of such parking spaces, the Individual Property is no longer in compliance with applicable zoning and land
use regulations; 
  
 (I) no Cash Trap Period
then exists or, as determined by the Administrative Agent in its reasonable discretion, would be likely to result from the release of such Net Proceeds for the Restoration of such Individual Property; 
  
 (J) Legal Requirements permit the Improvements to be
rebuilt to substantially the same size and scope and at substantially the same location as they existed prior to such fire or other casualty or taking, as applicable; and 
  
 (K) the applicable Borrower shall commence and complete the Restoration within the time period specified by
any Legal Requirements which might limit the Improvements from being rebuilt to the same size and scope and at the same location as they existed prior to such fire or other casualty or taking, as applicable. 
  
 (ii) The Net Proceeds shall be held by the Administrative
Agent in an account maintained by the Administrative Agent at an Approved Financial Institution and any income earned thereon shall be added to such Net Proceeds and become a part thereof and, until disbursed in accordance with the provisions of
this Section 3.3, shall constitute additional security for the Indebtedness and other obligations under the Loan Documents. Such Net Proceeds shall be invested in Permitted Investments. All out-of-pocket costs and expenses of maintaining and

  

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administering such Net Proceeds shall be paid by the Borrowers. The Administrative Agent shall not be obligated to obtain any specified rate of return with
respect to Permitted Investments on the Net Proceeds and in no event shall the Administrative Agent be liable for any loss of the principal amount of the Net Proceeds, the risk of such losses to be borne solely by the Borrowers for the term of the
Loans (unless such loss is caused by the Administrative Agent’s conversion or misappropriation of such Net Proceeds). The Net Proceeds shall be disbursed by the Administrative Agent to, or as directed by, the Borrowers from time to time during
the course of the Restoration, upon receipt of evidence satisfactory to the Administrative Agent that (A) an amount equal to the portion of the Net Proceeds requested by the Borrowers to be disbursed is due and payable to or required to be deposited
with third parties approved by the Administrative Agent in connection with the Restoration, (B) all materials installed and work and labor performed in connection with the Restoration have been installed and/or completed in accordance with the plans
and specifications for the Restoration previously approved by the Administrative Agent and/or the Casualty Consultant, and (C) there exist no notices of pendency, stop orders, mechanic’s or materialman’s liens or notices of intention to
file same, or any other liens or encumbrances of any nature whatsoever on the Individual Property arising out of the Restoration which have not either been fully bonded to the reasonable satisfaction of the Administrative Agent and discharged of
record or in the alternative fully insured to the reasonable satisfaction of the Administrative Agent by the title company issuing the title insurance policy. 
  

(iii) All plans and specifications required in connection with the Restoration shall be subject to prior review and approval in all
respects by the Administrative Agent and by an independent consulting engineer selected by the Administrative Agent (the “Casualty Consultant”), which approval shall not be unreasonably withheld, conditioned or delayed. The
Administrative Agent shall have the use of the plans and specifications and all permits, licenses and approvals required or obtained in connection with the Restoration. The identity of the contractors, subcontractors and materialmen engaged in the
Restoration, as well as the contracts under which they have been engaged, shall be subject to prior review and approval by the Administrative Agent and the Casualty Consultant, which approval shall not be unreasonably withheld, delayed or
conditioned. All reasonable out-of-pocket costs and expenses incurred by the Administrative Agent in connection with making the Net Proceeds available for the Restoration including, without limitation, reasonable counsel fees and disbursements and
the Casualty Consultant’s fees, shall be paid by the Borrowers. 
  
 (iv) In no event shall the Administrative Agent be obligated to make disbursements of the Net Proceeds in excess of an amount equal to the costs actually incurred from time to time for work in place as part of 

  

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the Restoration, as certified by the Casualty Consultant, minus the Casualty Retainage. The term “Casualty Retainage” shall mean an
amount equal to ten percent (10%) of the costs actually incurred for work in place as part of the Restoration, as certified by the Casualty Consultant, until the Restoration has been completed. The Casualty Retainage shall in no event, and
notwithstanding anything to the contrary set forth above in this Section 3.3(2), be less than the amount actually held back by the Borrowers from contractors, subcontractors and materialmen engaged in the Restoration. The Casualty Retainage
shall not be released until the Casualty Consultant certifies to the Administrative Agent that the Restoration has been completed in accordance with the provisions of this Section 3.3(2) and that all approvals necessary for the re-occupancy
and use of the Individual Property have been obtained from all appropriate governmental and quasi-governmental authorities, and the Administrative Agent receives evidence reasonably satisfactory to the Administrative Agent that the costs of the
Restoration have been paid in full or will be paid in full out of the Casualty Retainage. 
  
 (v) the Administrative Agent shall not be obligated to make disbursements of the Net Proceeds more frequently than once every calendar
month. 
  
 (vi) If at any time the Net Proceeds
or the undisbursed balance thereof shall not, in the reasonable opinion of the Administrative Agent in consultation with the Casualty Consultant, be sufficient to pay in full the balance of the costs which are estimated by the Casualty Consultant to
be incurred in connection with the completion of the Restoration, the Borrowers shall deposit the deficiency (the “Net Proceeds Deficiency”) with the Administrative Agent before any further disbursement of the Net Proceeds
shall be made. The Net Proceeds Deficiency deposited with the Administrative Agent shall be held by the Administrative Agent in the same manner as the Net Proceeds and shall be disbursed for costs actually incurred in connection with the Restoration
on the same conditions applicable to the disbursement of the Net Proceeds, and until so disbursed pursuant to this Section 3.3(2) shall constitute additional security for the Indebtedness and other obligations under the Loan Documents.

  
 (vii) The excess, if any, of the Net
Proceeds and the remaining balance, if any, of the Net Proceeds Deficiency deposited with the Administrative Agent after the Casualty Consultant certifies to the Administrative Agent that the Restoration has been completed in accordance with the
provisions of this Section 3.3(2), and the receipt by the Administrative Agent of evidence reasonably satisfactory to the Administrative Agent that all costs incurred in connection with the Restoration have been paid in full, shall, so long
as no Event of Default shall have occurred and be continuing under the Notes, this Agreement or any of the other Loan Documents, either (A) if no Cash Trap Period then 

  

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exists, be remitted by the Administrative Agent to the Borrowers or (B) if a Cash Trap Period then exists, be deposited by the Administrative Agent into the
Trapped Cash Reserve, whereupon such excess funds shall become part of the Trapped Cash Reserve and constitute additional security for the Loans. 
  
 (3) All Net Proceeds not required (a) to be made available for the Restoration or (b) to be returned to the Borrowers or deposited in the
Trapped Cash Reserve pursuant to Section 3.3.(2)(vii) may be retained and applied by the Administrative Agent toward the payment or prepayment of the Indebtedness, without the payment of any Prepayment Fee (it being understood that, pursuant
to Section 2.3(3)(c)(i), the Administrative Agent shall hold and invest such Net Proceeds until the next Payment Date so as to avoid the incurrence of any Libor Breakage Fee), as set forth in Section 2.3(3)(a)(ii), or, at the
discretion of the Administrative Agent, the same may be paid, either in whole or in part, to the Borrowers. In the event that the Administrative Agent elects to apply Net Proceeds toward the payment or prepayment of the Indebtedness pursuant to the
preceding sentence, the Borrowers may obtain the release of the Lien of the Mortgage (and related Loan Documents) pursuant to Section 2.7(2) hereof with respect to the Individual Property that has suffered the casualty or Condemnation;
provided, however, with respect to the requirement set forth in (w) Section 2.7(2)(iii), the Borrowers shall only be required to pay the excess of the Release Amount for such Individual Property over the Net Proceeds actually received by the
Administrative Agent and applied toward the prepayment of the Indebtedness, (x) Section 2.7(2)(iv), the Borrowers shall not be required to pay any Prepayment Fee (except a Libor Breakage Fee, if such payment is made on a day other than on the
last day of an Interest Period), (y) Section 2.7(2)(v), the Borrowers shall only be required to transfer the Individual Property to another Person, which may be an Affiliate of any Borrower, in accordance with the other terms and provisions
of this Agreement, including, but not limited to, Section 6.27 hereof and (z) Section 2.7(2)(viii), the Borrowers shall not be required to satisfy the 1:50:1:00 DSCR requirement. 
  
 ARTICLE IV 
  
 ENVIRONMENTAL MATTERS 
  
 Section 4.1 Certain Definitions. As used herein, the following terms have the meanings indicated: 
  
 (1) “Environmental Laws” means any
applicable local, state, federal or other governmental statute, ordinance, code, order, decree, law, rule or regulation (or a part thereof) pertaining to or imposing liability or standards of conduct concerning environmental regulation,
contamination or clean-up including, without limitation, (a) any Arizona statutes contained in Arizona Revised Statutes Title 49 (the foregoing statutes only to the extent applicable to the Individual Properties located in Arizona); (b) the
California Environmental Quality Act and the applicable provisions of the California Health and Safety Code, California Labor Code and the California Water Code (the foregoing statutes only to the extent applicable to the Individual Properties
located in California); (c) Articles 6.5 to 18, inclusive, of Title 25 of the Colorado Revised Statutes (the foregoing statutes only to the extent applicable to the Individual Properties located in Colorado); (d) Minnesota Environmental Response and
Liability Act, Minn. Stat. 

  

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chap. 115B, the Minnesota Petroleum Tank Release Cleanup Act, Minn. Stat. chap. 115C (the foregoing statutes only to the extent applicable to the Individual
Properties located in Minnesota); (e) the following provisions of the New Mexico Statutes Annotated (“NMSA”): the Air Quality Control Act, Sections 74-2-1 through 74-2-17, NMSA 1978; the Hazardous Waste Act, Sections 74-4-1 through
74-4-14, NMSA 1978; the Emergency Management Act, Sections 74-4B-1 through 74-4B-14, NMSA 1978; the Voluntary Remediation Act, Sections 74-4G-1 through 74-4G-12, NMSA 1978; and the Water Quality Act, Sections 74-6-1 through 74-6-17, NMSA 1978 (the
foregoing statutes only to the extent applicable to the Individual Property located in New Mexico); (f) the following provisions of the Oregon Revised Statutes (“ORS”): Chapter 459 (Solid Waste Management) of Oregon Revised Statutes
(“ORS”), ORS Chapter 459A (Refuse and Recycling), ORS Chapter 465 (Hazardous Waste and Hazardous Material I), ORS Chapter 466 (Hazardous Waste and Hazardous Materials II), Chapter 467 (Noise Control), ORS Chapter 468 (Environmental Quality
Generally), ORS Chapter 468A (Air Quality), ORS Chapter 496 (Threatened or Endangered Species) and ORS Chapter 468B (Water Quality) and the amendments, regulations, orders, decrees, permits, licenses, guidance documents or deeds now or hereafter
promulgated thereunder, as applicable (the foregoing statutes only to the extent applicable to the Individual Property located in Oregon); (g) the following provisions of the Utah Code Annotated (“UCA”): Hazardous Substances Mitigation
Act, U.C.A. §§ 19-6-301—325; Solid and Hazardous Waste Act, U.C.A. § 19-6-101—123; Underground Storage Tank Act U.C.A. §§ 19-6-401—429; Lead Acid Battery Disposal Act, U.C.A. §§ 19-6-601-607; Used
Oil Management Act, U.C.A. §§ 19-6-701-723; Voluntary Cleanup Program, U.C.A. §§ 19-8-101— 118; Environmental Institutional Control Act, U. C. A. §§ 19-9-101—108; Water Quality Act, U.C.A. §§
19-5-101—119; Safe Drinking Water Act, U.C.A. §§ 19-4-101—112; Air Conservation Act, U.C.A. §§ 19-2-101—127; and the Radiation Control Act, U.C.A. §§ 19-3-101—113 (the foregoing statutes only to the
extent applicable to those Properties located in Utah); (h) the following provisions of the Revised Code of Washington (“RCW”): Washington Water Pollution Control Act, RCW Chapter 90.48, Washington Clean Air Act, RCW Chapter 70.94,
Washington Solid Waste Management Recovery and Recycling Act, RCW Chapter 70.95, Washington Hazardous Waste Management Act, RCW Chapter 70.105, Washington Hazardous Waste Fees Act, RCW Chapter 70.95E, Washington Model Toxics Control Act, RCW Chapter
70.105D, Washington Nuclear Energy and Radiation Act, RCW Chapter 70.98, Washington Radioactive Waste Storage and Transportation Act of 1980, RCW Chapter 70.99, Washington Underground Petroleum Storage Tanks Act, RCW Chapter 70.148 (the foregoing
statutes only to the extent applicable to those Properties located in Washington); and (i) the Comprehensive Environmental Response, Compensation and Liability Act, as amended, the Resource Conservation and Recovery Act, as amended, the Emergency
Planning and Community Right-to-Know Act of 1986, as amended, the Hazardous Substances Transportation Act, as amended, the Solid Waste Disposal Act, as amended, the Clean Water Act, as amended, the Clean Air Act, as amended, the Toxic Substances
Control Act, as amended, the Safe Drinking Water Act, as amended, the Occupational Safety and Health Act, as amended, the Federal Insecticide, Fungicide and Rodenticide Act, as amended, the National Environmental Policy Act, as amended, the Rivers
and Harbors Appropriation Act, as amended, any applicable state environmental superlien and environmental clean-up statutes, and all regulations adopted in respect of the foregoing laws whether presently in force or coming into being and/or
effectiveness hereafter. 
  

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 (2) “Hazardous Materials” means (a) petroleum or chemical (to the
extent regulated by Environmental Laws) products, whether in liquid, solid, or gaseous form, or any fraction or by-product thereof, (b) asbestos or asbestos-containing materials, (c) polychlorinated biphenyls (pcbs), (d) radon gas, (e) underground
storage tanks, (f) any explosive or radioactive substances, (g) lead or lead-based paint, (h) toxic mold, or (i) any substance or item listed in the United States Department of Transportation Optional Hazardous Materials Table, 49 C.F.R.
§172.101, as to date or hereafter amended, or in the United States Environmental Protection Agency List of Hazardous Substances and Reportable Quantities, 40 C.F.R. Part 302, as to date or hereafter amended, or (j) any other substance,
material, waste or mixture which is or shall be listed, defined, or otherwise determined by any governmental authority to be hazardous, toxic, dangerous or otherwise regulated, controlled or giving rise to liability under any Environmental Laws.

  
 Section 4.2 Representations and Warranties on
Environmental Matters. To each Borrower’s knowledge, except as set forth in the Site Assessments or on Schedule 12 attached hereto, (1) no Hazardous Material is now or was formerly used, stored, generated, manufactured,
installed, treated, discharged, disposed of or otherwise present at or about any Individual Property or any property adjacent to any Individual Property (except for cleaning and other products used in connection with the routine operation,
maintenance or repair of any Individual Property (a) in full compliance with Environmental Laws and (b) consistent with the use of the Individual Property as a hotel and ancillary hotel related uses) and no Hazardous Materials were removed or
transported from any Individual Property, (2) all permits, licenses, approvals and filings required by Environmental Laws as to any Individual Property have been obtained, and the use, operation and condition of any Individual Property do not, and
did not previously, violate any Environmental Laws, (3) no civil, criminal or administrative action, suit, claim, hearing, investigation or proceeding has been brought or been threatened, nor have any settlements been reached by or with any parties
or any liens imposed in connection with any Individual Property concerning Hazardous Materials or Environmental Laws and no underground storage tanks exist on any part of any Individual Property, and (4) none of the Individual Properties located in
California has been or is now being used in violation of any applicable Environmental Laws and the Property has not been designated as “hazardous waste property” or “border zone property” pursuant to
Section 25220, et seq., of the California Health and Safety Code. 
  
 Section 4.3 Covenants on Environmental Matters. 
  
 (1) Each Borrower shall (a) comply strictly and in all respects with applicable Environmental Laws; (b) notify the Administrative Agent immediately upon its discovery of any spill, discharge, release or presence of
any Hazardous Materials at, upon, under, within, contiguous to or otherwise affecting any Individual Property (except for cleaning and other products used in connection with the routine operation, maintenance or repair of any Individual Property (i)
in full compliance with Environmental Laws and (ii) consistent with the use of the Individual Property as a hotel and ancillary hotel related uses); (c) promptly remove such Hazardous Materials and remediate any Individual Property in full
compliance with Environmental Laws; and (d) promptly forward to the Administrative Agent copies of all orders, notices, permits, applications or other written communications and reports in connection with any spill, discharge, release or the
presence of any Hazardous Materials or any other matters 

  

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relating to the Environmental Laws or any similar laws or regulations, as they may affect any Individual Property or any Borrower. 
  
 (2) Each Borrower shall not cause, install or conduct, as
applicable, and shall prohibit any other Person within the Control of such Borrower from causing, installing or conducting, as applicable, and shall use prudent, commercially reasonable efforts to prohibit other Persons (including tenants) from,
installing or conducting, as applicable, (a) any spill, discharge or release, or the use, storage, generation, manufacture, installation, or disposal, of any Hazardous Materials at, upon, under, within or about any Individual Property or the
transportation of any Hazardous Materials to or from any Individual Property in violation of Environmental Laws, provided that (i) each Borrower shall be required to give the Administrative Agent prior written notice of any intended use, storage,
generation, manufacture, installation, or disposal of any Hazardous Materials at, upon, under, within or about any Individual Property or the transportation of any Hazardous Materials to or from any Individual Property (except for cleaning and other
products used in connection with routine maintenance or repair of any Individual Property and (ii) such activity is in full compliance with Environmental Laws and consistent with the use of the Individual Property as a hotel and ancillary hotel
related uses), (b) any underground storage tanks at any Individual Property, or (c) any activity at any Individual Property that requires a permit or other authorization under Environmental Laws, unless the activity is conducted in the ordinary
course of the applicable Borrower’s business at said Individual Property, in full compliance with all applicable Environmental Laws and any necessary permit or authorization required in connection therewith is obtained and maintained and such
Borrower’s business is consistent with the use of the Individual Property as a hotel and ancillary hotel related uses. 
  
 (3) Each Borrower shall, at Borrower’s sole cost and expense, provide to the Administrative Agent promptly upon the written request
of the Administrative Agent from time to time, a Site Assessment or, if required by the Administrative Agent, an update to any existing Site Assessment, to assess the presence or absence of any Hazardous Materials and the potential costs in
connection with abatement, cleanup or removal of any Hazardous Materials found on, under, at or within any individual Property; provided, however, (a) the Administrative Agent shall not request a Site Assessment under this Section 4.3 more
than one (1) time in any twelve (12) month period for each Individual Property unless: (i) the Administrative Agent’s request for a Site Assessment is based on a reasonable suspicion of Hazardous Materials at or adjacent to any Individual
Property, (ii) a breach of representations under Section 4.2 exists, or (iii) an Event of Default exists, and (b) Borrower shall not be required to pay the expenses incurred by the Administrative Agent in connection with any such Site
Assessment or update of a Site Assessment unless one or more of the conditions described in clauses (i), (ii) and (iii) above exist. 
  
 Section 4.4 Allocation of Risks and Indemnity. (1) As between the Borrowers, the Administrative Agent and the Lenders, all risk of loss
associated with non-compliance with Environmental Laws, or with the presence of any Hazardous Material at, upon, within, contiguous to or otherwise affecting any Individual Property shall lie solely with the Borrowers. Accordingly, the Borrowers
shall bear all risks and costs associated with any loss (but not including any loss in value attributable to Hazardous Materials), damage or liability therefrom, including all costs of removal of Hazardous Materials or other remediation required by
the 

  

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Administrative Agent pursuant to this Agreement or by law. The Borrowers shall indemnify, defend and hold the Administrative Agent and the Lenders and their
respective shareholders, directors, officers, employees and agents harmless from and against all loss, liabilities, damages, claims, costs and expenses (including reasonable costs of defense and consultant fees, investigation and laboratory fees,
court costs and other litigation expenses) arising out of or associated, in any way, with (a) the non-compliance with Environmental Laws at, upon, within, contiguous to or adjacent to any Individual Property or otherwise relating to the Loans; (b)
the existence of Hazardous Materials in, on, about, contiguous to, or adjacent to, any Individual Property; (c) any personal injury (including wrongful death) or property damage (real or personal) arising out of or related to Hazardous Materials in,
on, about, contiguous to, or adjacent to, any Individual Property; (d) any lawsuit brought or threatened, settlement reached, or government order relating to such Hazardous Materials; or (e) a breach of any representation, warranty or covenant
contained in this Article 4, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute or common law, including those arising from the joint, concurrent, or comparative negligence of the
Administrative Agent and the Lenders. The Borrowers’ obligations under this Section 4.4(1) shall arise upon the discovery of the presence of any such Hazardous Materials, whether or not any governmental authority has taken or threatened
any action in connection with the presence of any such Hazardous Materials, and whether or not the existence of any such Hazardous Materials or potential liability on account thereof is disclosed in the Site Assessment and, except as expressly
provided in this Section 4.4(1), shall continue notwithstanding the repayment of the Loans or any transfer or sale of any right, title and interest in any Individual Property (by foreclosure, deed in lieu of foreclosure or otherwise).
Notwithstanding the foregoing provision regarding the survival of the Borrowers’ indemnity obligations under this Section: (x) if the Loan is repaid in full in accordance with the terms and conditions of the Loan Documents and the Mortgages
encumbering each Individual Property are released and discharged or if an Immediate Release Property or an Other Release Property is released from the lien of the Mortgage encumbering said Individual Property pursuant to Sections 2.8 or
2.7(2), respectively, the Borrowers may deliver to the Administrative Agent a new Site Assessment for the Individual Property(ies) in question and the Borrowers’ indemnification obligations under this Section 4.4 with respect to the
Individual Property(ies) released from the lien of the Mortgage(s) shall expire one year following the date of the delivery of the Site Assessments to the Administrative Agent if and only if there are no pending or threatened claims relating to
Hazardous Materials at said Individual Properties at the end of said one year period, and the Administrative Agent confirms in writing that the Site Assessment has been approved by the Administrative Agent (which approval shall not be unreasonably
withheld) and does not raise any issues with respect to potential environmental liability with respect to said Individual Properties; provided, however, if the Administrative Agent disapproves the Site Assessment, Borrower’s liability for any
claims, potential claims and risks not otherwise identified in said Site Assessment shall expire one (1) year after the delivery of such Site Assessment to the Administrative Agent; and (y) the Borrowers’ indemnification obligations under this
Section 4.4 shall not extend to Hazardous Materials first present on an Individual Property after (or the violation of an Environmental Law first occurring after) the Administrative Agent or its designee takes title to said Individual
Property by foreclosure or by its acceptance of a deed in lieu of foreclosure provided (A) such Hazardous Materials were placed, deposited or released in, on or under the Premises after the date of foreclosure or deed in lieu of foreclosure by third
parties unrelated in any way to 

  

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Borrowers or any person or entity affiliated with or having an interest in any Borrower or a partner, member or manager of any Borrower and (B) such
placement, deposit or release was not caused by and does not result from the acts or omissions of any Borrower, any partner, member or manager of any Borrower or any person or entity having a direct or indirect interest in any Borrower or partner or
member of any Borrower. This indemnification shall inure to the benefit of any Affiliate of the Administrative Agent or any Lender that takes title to one or more Individual Properties pursuant to a foreclosure or the acceptance of a deed in lieu of
foreclosure but shall not benefit any third party purchaser of an Individual Property from the Administrative Agent, any Lender or any Affiliate of the Administrative Agent or any Lender. 
  
 Notwithstanding the foregoing, with respect to an Individual Property located in the State of Arizona, this indemnity shall survive payment
of the Notes (subject, however, to the time limitation on a Borrower’s liability for claims as set forth in the preceding paragraph), but shall become null and void and of no further force or effect with respect only to such Individual Property
in the event the Administrative Agent, the beneficiary under the applicable Mortgage, or any other party obtains title to such Individual Property through foreclosure or exercises a power of sale under the applicable Mortgage or deed in lieu of
foreclosure or exercise of power of sale. This indemnity shall remain in full force and effect with respect to all other Properties securing the Loan. 
  
 (2) Additionally, if any Hazardous Materials affect or threaten to affect the Properties, the Administrative Agent may (but shall not be
obligated to) give such notices and take such actions as it deems necessary or advisable at the expense of the Borrowers in order to abate the discharge of any Hazardous Materials or remove the Hazardous Materials as required by any Environmental
Laws if the Administrative Agent determines in its reasonable discretion that any Borrower is not diligently and in good faith taking such action and such Borrower does not commence such action within fifteen (15) Business Days of receipt of notice
thereof from the Administrative Agent. Any amounts paid by the Administrative Agent by reason of the application of Section 4.4(1) shall become immediately due and payable and shall bear interest at the Default Rate from the date loss or
damage is sustained, or amounts paid or expended, by the Administrative Agent until paid. The obligations and liabilities of the Borrowers under this Section 4.4(2) shall survive any termination, satisfaction, assignment, entry of a judgment
of foreclosure or delivery of a deed in lieu of foreclosure. 
  
 (3) So long as no Event of Default exists, the Borrowers may submit to the Administrative Agent a proposal to substitute an environmental insurance policy for the Borrowers’ indemnification obligations set forth
in Section 4.4(1) above and for the Borrowers’ and Sunstone’s indemnification obligations set forth in the Hazardous Materials Indemnity Agreement. Any such request by the Borrowers shall include a true and complete copy of the
proposed environmental insurance policy and the projected premium for said policy. The Administrative Agent shall consider any such proposal in good faith and make a recommendation to the Lenders with respect to any such request. The Administrative
Agent shall not be obligated to consent to or approve the substitution of the proposed environmental insurance policy for said indemnification obligations, and the Administrative Agent shall only grant such consent or approval if it receives the
written consent of the Controlling Lenders, which consent may be granted, conditioned or withheld in each Lender’s sole and absolute discretion. 
  

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 Section 4.5 No Waiver. Notwithstanding any provision in this Article 4 or elsewhere
in the Loan Documents, or any rights or remedies granted by the Loan Documents, the Administrative Agent and the Lenders do not waive and expressly reserves all rights and benefits now or hereafter accruing to the Administrative Agent and/or any
Lenders under the “security interest” or “secured creditor” exception under applicable Environmental Laws, as the same may be amended. No action taken by the Administrative Agent and/or any Lender pursuant to the Loan Documents
shall be deemed or construed to be a waiver or relinquishment of any such rights or benefits under the “security interest exception.” 
  
 ARTICLE V 
  
 CERTAIN PROPERTY MATTERS; CASH MANAGEMENT 
  
 Section 5.1 Leases. Except as set forth on Schedule 11, there are no Leases affecting the Properties. The Leases disclosed on
Schedule 11 (including the amendments disclosed thereon) represent the full and complete terms and provisions of the leases entered into between the respective parties thereto which are in effect as of the date hereof, and there are no
amendments, modifications, or other agreements relating thereto. No Borrower has executed any prior assignment of Leases which is presently effective or during the term of the Loans will become effective, nor has it performed any act or executed any
other instrument which might prevent the Administrative Agent (on behalf of the Lenders) from operating under any of the terms and conditions of the Assignments of Leases and Rents or which would limit the Administrative Agent (on behalf of the
Lenders) in such operation other than the Leases themselves. No Borrower has executed or granted any modification whatsoever of the Leases, except as indicated on Schedule 11, and to the best of each Borrower’s knowledge there are no
defaults now existing under the Leases. 
  
 Section 5.2 Lease Covenants and Limitations. 
  
 (1) Each Borrower (a) shall perform, or cause to be performed, the obligations which such Borrower is required to perform under the Leases; (b) shall use commercially reasonable efforts to enforce the obligations to
be performed by the tenants under the Leases; (c) shall promptly furnish to the Administrative Agent any notice of default or termination received by any Borrower from any tenant under a Material Lease or sent by any Borrower to any tenant under a
Material Lease; (d) shall not collect any Rents under any Material Lease for more than thirty (30) days in advance of the time when the same shall become due, except for bona fide security deposits not in excess of an amount equal to two months
rent; (e) during a Cash Trap Period shall not enter into any new Material Lease or Capital Lease, or modify, amend or terminate any existing Material Lease or Capital Lease, without the Administrative Agent’s prior written consent, which
consent shall not be unreasonably withheld; (f) at all times when a Cash Trap Period does not exist, shall provide the Administrative Agent with at least ten (10) days prior written notice of any new Material Lease or Material Capital Lease, or any
material modification or amendment of a Material Lease or Material Capital Lease or any termination of any existing Material Lease or Material Capital Lease; (g) shall not further assign or encumber any Lease; and (h) promptly upon the request of
the Administrative Agent, shall obtain and furnish to the Administrative Agent written estoppels in form and substance reasonably satisfactory to the Administrative Agent, executed by tenants under Material Leases at the 

  

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Properties or lessors under Capital Leases., as applicable, and confirming the term, rent, and other provisions and matters relating to the Leases.

  
 (2) Borrower acknowledges and agrees that the
Administrative Agent shall not be obligated to provide a non-disturbance agreement to any tenant under any Lease entered into after the date hereof which has not been reviewed and approved by the Administrative Agent in writing. 
  
 (3) Each Borrower shall indemnify, defend and hold the
Administrative Agent and each Lender harmless from and against any and all Losses incurred or suffered by any of them in connection with (A) any assignment fees which are due and payable, or claimed by the ground lessor to be due and payable, under
Section 14.1 of any of the Tarsadia Ground Leases as a result of or in any way arising from or related to (i) the grant of lien of the Mortgage and the assignment of Sunstone OP’s rights therein to the Administrative Agent, (ii) the foreclosure
by the Administrative Agent, or the Administrative Agent’s acceptance of a deed in lieu of foreclosure, of Sunstone OP’s rights in the Tarsadia Ground Leases, or any similar exercise of remedies by the Administrative Agent with respect to
any of the Tarsadia Ground Leases or the Tarsadia Properties, or (iii) the sale, conveyance, transfer or other grant by the Administrative Agent of its rights in any of the Tarsadia Ground Leases or the Tarsadia Properties subsequent to its exercise
of any of the remedies described in subsection (ii) and (B) any failure, refusal or inability of any ground lessor under any Tarsadia Ground Lease, or any mortgagee or lender of such ground lessor, to release to a Borrower or the Administrative
Agent any proceeds of casualty insurance or condemnation proceeds relating to any of the Tarsadia Properties. The liabilities and obligations of the Borrowers and Lenders under this Section 5.2(3) are separate and several and shall survive
the termination of this Agreement, the satisfaction and discharge of the Indebtedness, merger and judgment. 
  
 Section 5.3 Budgets. 
  
 (1) For each Individual Property, each Borrower shall deliver to Lender the following prior to the end of each Fiscal Year during the term
of the Loans: 
  
 (a) A projection of Operating
Revenues, Operating Expenses and cash flow by month for the next Fiscal Year presented in a form consistent with the Uniform System of Accounts (the “Operating Budget”) and including projections of average daily room rates
and occupancy levels. Any Operating Expense that will involve a payment to or for the benefit of any Borrower, Manager, or an Affiliate of either shall be noted as a separate line item in the Operating Budget. The Operating Budget will be presented
in comparison with the budgeted and actual performance for the then current Fiscal Year. 
  
 (b) A projection by month of FF&E and capital expenditures for the next Fiscal Year (the “Capital Budget”).

  
 (c) A narrative description of each
Borrower’s plans and goals (the “Business Plan”), including a reasonably detailed marketing plan (specifying, among other things, rack rates being charged at hotels similar in nature and in the 

  

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general vicinity of the applicable Properties for the next Fiscal Year and, with respect to the two (2) Fiscal Years thereafter, including a projection by
summary category of Operating Revenues, Operating Expenses, FF&E costs and capital requirements. 
  
 (2) The Operating Budget and the Capital Budget shall constitute the “Annual Budget” for such Fiscal Year; a form
of the Annual Budget for the current Fiscal Year is attached hereto as Exhibit 6. The delivery of the Annual Budget shall be deemed a certification by each Borrower that it contains only information and relies only upon assumptions reasonably
believed to be correct and achievable by such Borrower and Manager. If requested by the Administrative Agent, the Borrowers and Manager shall meet with the Administrative Agent to explain and discuss the Annual Budget. 
  
 (3) If no Cash Trap Period exists at the time of delivery of
the Annual Budget to the Administrative Agent, the Operating Budget presented by the Borrowers shall be for information purposes only and the Capital Budget presented by the Borrowers shall be for discussion purposes only, and the Administrative
Agent shall have no rights over approval with respect thereto and Borrower shall also have the right to make revisions to the Operating Budget and Capital Budget from time to time without the Administrative Agent’s approval and will deliver a
revised Operating Budget and/or Capital Budget to the Administrative Agent for information purposes only. However, if a Cash Trap Period exists at the time of delivery of the Annual Budget to the Administrative Agent, the Administrative Agent shall
have the right to approve the Annual Budget in accordance with the following procedures: The Administrative Agent shall promptly review the Annual Budget and shall endeavor to advise the Borrowers, within ten (10) Business Days of receipt of the
Annual Budget and Business Plan, of the portions as to which the Administrative Agent has no objection. If requested by the Administrative Agent, the Borrowers and Manager shall meet with the Administrative Agent to explain and discuss the Annual
Budget. If the Administrative Agent shall object to the Annual Budget or any portion thereof, the Administrative Agent shall specify its objections and the Borrowers shall submit to the Administrative Agent a new proposed Annual Budget or relevant
portion thereof within ten (10) Business Days after notice of the Administrative Agent’s objections. This procedure shall be repeated until a complete approved budget exists. Until such time as an Approved Budget is agreed upon, the prior
year’s Approved Budget shall be deemed in effect, subject to reasonable increases for taxes and insurance. 
  
 (4) While any Cash Trap Period exists, the Borrowers may not make any changes, modifications or line-item transfers to the Approved Budget
then in effect without obtaining the prior written consent of the Administrative Agent, which shall not be unreasonably withheld or delayed. 
  

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 Section 5.4 Books and Records. 
  
 (1) Each Borrower shall keep accurate, complete and detailed
books and records including, without limitation, books of account, tax records, guest records, front office records and other records (collectively referred to as the “Books and Records”) in which shall be entered fully and
adequately every transaction with respect to the operation of the Individual Property, all substantially in accordance with GAAP. The Books and Records shall be kept on the basis of a calendar accounting year. All of the Books and Records with
respect to an Individual Property shall be kept at such Individual Property or at the Borrowers’ corporate headquarters in San Clemente, California, unless otherwise approved in writing by the Administrative Agent. 
  
 (2) The Books and Records shall be available to the
Administrative Agent, the Lenders and their respective representatives during normal business hours upon reasonable advance notice for examination, audit, inspection, copying and transcription. Each Borrower and its agents shall maintain such
control over the Books and Records as is required to protect them from theft, error, fraudulent activity or use for purposes other than the operation of the Properties. 
  
 Section 5.5 Notices. Each Borrower shall deliver to the Administrative Agent copies of all notices of default
or termination received or given by such Borrower (or its agents or representatives) under any of the Licenses, Policies and other contracts that could materially affect any of the Properties within three (3) Business Days after such notice is given
or received, as the case may be. Each Borrower shall also provide the Administrative Agent with copies of all notices and correspondence pertaining to any of the Properties received by such Borrower (or any of such Borrower’s agent or
employees) from any governmental authority or from any company providing insurance Policies and all other material notices, within three (3) Business Days after such notices are received. 
  
 Section 5.6 Management and Franchises. 
  
 (1) Each Borrower shall provide competent and responsible management for each Individual Property (including
room rental, maintenance and security) by a manager and pursuant to a written management agreement satisfactory to the Administrative Agent. The Managers and Management Agreements specified on Schedule 5A are currently satisfactory to the
Administrative Agent. Any future manager of any Individual Property must be reasonably satisfactory to the Administrative Agent and must be a nationally recognized hotel manager and operator with at least ten (10) years experience. Any management
agreement must contain subordination and termination provisions reasonably acceptable to Lender. Except as expressly permitted pursuant to the terms and conditions of the Management Agreements, no Borrower shall modify, amend or terminate any
approved management agreement without the Administrative Agent’s prior written consent, not to be unreasonably withheld. 
  
 (2) Each Borrower shall maintain franchise agreements with nationally recognized operators of hotels pursuant to franchise agreements
reasonably satisfactory to the Administrative Agent. The franchises and Franchise Agreements specified on Schedule 5B are currently satisfactory to the Administrative Agent. Any future franchise agreements must be 

  

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reasonably acceptable to Administrative Agent. Except as expressly permitted pursuant to the terms and conditions of the Franchise Agreements, no Borrower
shall modify, amend or terminate any approved Franchise Agreement without the Administrative Agent’s prior written consent, not to be unreasonably withheld. At all times prior to the repayment in full of the Indebtedness, the Borrowers shall
maintain in full force and effect a “comfort letter”, so called, with respect to the Franchise Agreement for each Individual Property, which comfort letter shall be on substantially the same terms and conditions as the comfort letters for
each Individual Property delivered to the Administrative Agent on the Closing Date. 
  
 Section 5.7 Establishment of Depository Accounts. 
  
 (1) Operating Accounts. For each Individual Property, each Borrower shall establish and maintain (or cause the Manager or
applicable Operator to establish and maintain) a segregated Depository Account into which such Borrower shall deposit (or shall cause to be deposited) on a daily basis all Operating Revenue from the applicable Individual Property (the
“Operating Account”). All Operating Revenues shall be billed and collected in the name of the applicable Borrower, Operator or Manager or its or their respective names which are trademarks and in no other names. 

 
 (2) Concentration Account. If the Borrowers
so elect, they may establish and maintain (or cause the Manager or applicable Operator to establish and maintain) a segregated Depository Account (the “Concentration Account”) into which the Borrowers shall deposit (or shall
cause to be deposited) all Operating Revenues previously deposited in the Operating Accounts. 
  
 (3) Limitation on Permitted Uses. Each Borrower shall apply (or cause to be applied) all Operating Revenues as set forth in
Section 5.9(1). Except as set forth therein, Operating Revenues shall not be used for distributions to or for the account of such Borrower or any of its Affiliates or applied to the payment of any Borrower’s obligations, debts or
expenses not set forth on the then current Approved Budget. 
  
 Section 5.8 Establishment and Funding of Reserves With Administrative Agent. As further security for the Loans, each Borrower agrees to establish and fund the following reserves with the Administrative Agent (or, at the
election of the Administrative Agent, with a financial institution approved by the Administrative Agent and in an account in the name of the Administrative Agent), to be held by the Administrative Agent as security for the Loans: 
  
 (1) Tax and Insurance Reserve. 
  
 (a) The Borrowers shall on the date hereof deposit with the
Administrative Agent (or, at the election of the Administrative Agent, with a financial institution approved by the Administrative Agent and in an account in the name of the Administrative Agent) the sum of $1,175,000.00 for the purpose of reserving
funds for the payment of insurance premiums and Taxes with respect to the Properties (the “Tax and Insurance Reserve”). 
  

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 (b) Each Borrower shall deposit with the Administrative Agent (for further deposit into
the Tax and Insurance Reserve) on a monthly basis: 
  
 (i) one-twelfth (l/12th) of the annual charges for Taxes, assessments and similar charges relating to the Properties, or such other monthly amount determined by the Administrative Agent (which determination shall be conclusive in the
absence of manifest error) to be necessary to provide sufficient funds for payment of such amounts as and when they shall next become due; and 
  
 (ii) one-twelfth (1/12th) of the Insurance Premiums that the Administrative Agent estimates will be payable for the renewal of the
coverage afforded by the insurance policies required hereunder upon the expiration thereof, or such other monthly amount determined by the Administrative Agent (which determination shall be conclusive in the absence of manifest error) to be
necessary to provide sufficient funds for payment of such amounts as and when they shall next become due. 
  
 (c) Not less than two times per year, the Administrative Agent shall review the annual charges for Taxes, assessments and similar charges
relating to the Properties and re-determine the monthly amount it deems necessary to receive from the Borrowers in order to provide sufficient funds for payment of such Taxes as and when they shall next become due (such process, a “Tax
Escrow Rebalancing”). In addition to each semi-annual Tax Escrow Rebalancing, in the event that Individual Properties with aggregate annual Tax charges in excess of $300,000 have been Released since the most recent Tax Escrow
Rebalancing, the Borrowers shall have the right to require the Administrative Agent to conduct another Tax Escrow Rebalancing. If the Administrative Agent determines as a result of any Tax Escrow Rebalancing that the required monthly Tax escrow
amount for the Borrowers shall have changed, the Administrative Agent shall notify the Borrowers thereof and each monthly Tax escrow payment thereafter shall reflect the new monthly amount so determined by the Administrative Agent. Under no
circumstances shall the Administrative Agent be required to refunds monies from the Tax and Insurance Escrow to Borrower as a result of any Tax Escrow Rebalancing. 
  
 (d) Due to the seasonal nature of the Borrowers’ business, the Borrowers may elect in their sole
discretion in any month to pay to the Administrative Agent an amount greater than that required to be deposited in the Tax and Insurance Reserve as set forth above. To the extent that the Borrowers have made such excess payments to the
Administrative Agent and the Tax and Insurance Reserve is, in the Administrative Agent’s reasonable calculation, over-funded, the Borrowers may elect in any subsequent month to reduce the monthly Tax and Insurance Reserve payment to the
Administrative Agent by an amount equal to the amount by which the Administrative Agent has determined that the Tax and Insurance Reserve is over-funded (which determination shall be conclusive in the absence of manifest error). 
  
 (e) At its election, the Administrative Agent may establish
separate reserve accounts for taxes and insurance premiums, so long as any amounts 

  

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deposited in or disbursed from the separate tax reserve account are allocable to tax expenses and any amounts deposited in or disbursed from the separate
insurance reserve account are allocable to insurance expenses. The provisions of this Agreement which are applicable to the Tax and Insurance Reserve shall be equally applicable to any separate tax reserve account and insurance reserve account
established by the Administrative Agent. 
  
 (f)
Notwithstanding the foregoing provisions of this Section 5.8(1), the Administrative Agent as of the date of this Agreement has agreed not to require the Borrowers to deposit funds for insurance premiums so long as (i) no Cash Trap Event has
occurred and (ii) no Event of Default has occurred hereunder. Upon the occurrence of a Cash Trap Event or an Event of Default hereunder, the Administrative Agent shall have the right to require the Borrowers (and each of the Borrowers hereby agrees)
to immediately make monthly deposits for insurance premiums into the Tax and Insurance Reserve in accordance with the provisions and requirements of this Section 5.8(1), together with payment of a sum which, together with such monthly
deposits, will be sufficient to pay all insurance premiums at least thirty (30) days prior to the date initially due. Nothing in this subsection shall be deemed to limit the obligations of the Borrowers to deposit funds for tax payments into the Tax
and Insurance Reserve as of the date of this Agreement. 
  
 (2) Capital Expenditure Reserve. 
  
 (a) The Borrowers shall on the date hereof deposit with the Administrative Agent (or, at the election of the Administrative Agent, with a
financial institution approved by the Administrative Agent and in an account in the name of the Administrative Agent) the sum of $1,156,918.91, which represents all sums heretofore accumulated in the FF&E reserves maintained by Borrower in
accordance with the requirements of the Management Agreements for the Properties, as specified on Schedule 9 (the “Capital Expenditure Reserve”). 
  
 (b) The Borrowers shall deposit with the Administrative Agent (for further deposit into the Capital
Expenditure Reserve), not later than the tenth (10th) day of each month, an amount equal to four percent (4%) [percentage to be confirmed upon completion of underwriting] of the sum of the Operating Revenues for each Individual Property
during the preceding month, as calculated based on the Monthly Operating Statement for each Individual Property. At the option of the Administrative Agent, the Administrative Agent may direct the Borrowers to deposit the required Capital Expenditure
Reserve amounts directly into the Capital Expenditure Reserve Account and shall notify the Administrative Agent of the date and amount of each such deposit. 
  

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 (3) Ground Lease Rent Reserve. 
  
 (a) The Borrowers shall on the date hereof deposit with the
Administrative Agent (or, at the election of the Administrative Agent, with a financial institution approved by the Administrative Agent and in an account in the name of the Administrative Agent) the sum of $285,000.00, which constitutes an amount
equal to two (2) times the sum of the monthly rents which are currently payable for the Properties that are the subject of ground leases as set forth on Schedule 10 (the “Ground Lease Rent Reserve”). 
  
 (b) Not later than thirty (30) days prior to the effective
date of any scheduled increase in the amount of monthly rent under any of the Ground Leases, the Borrowers shall deposit with the Administrative Agent an amount equal to the amount of such increase, such that the Ground Lease Rent Reserve shall
contain an amount equal to two (2) times the sum of the monthly ground rents which will be payable under the Ground Leases on the effective date of such increase. 
  
 (c) In the event that the Administrative Agent applies any portion of the funds on deposit in the Ground
Lease Rent Reserve to the payment of rent under any of the Ground Leases, the Borrowers shall immediately (and in any event within three Business Days) deposit with the Administrative Agent an amount equal to such amount so paid, such that the
Ground Lease Rent Reserve shall at all times contain an amount equal to two (2) times the sum of the monthly ground rents which are then currently payable under the Ground Leases. 
  
 (4) Deferred Maintenance Reserve. The Borrowers shall on the date hereof deposit with the
Administrative Agent (or, at the election of the Administrative Agent, with a financial institution approved by the Administrative Agent and in an account in the name of the Administrative Agent) the sum of $416,600.00, which represents the amount
that the Administrative Agent estimates will be required to complete the repairs and replacements for the Properties as specified on Schedule 7, in the event that such repairs or replacements are required during the term of the Loans (the
“Deferred Maintenance Reserve”). 
  
 (5) Trapped Cash Reserve. During any Cash Trap Period and for each Individual Property, each Borrower shall deposit with the Administrative Agent (or, at the election of the Administrative Agent, with a
financial institution approved by the Administrative Agent and in an account in the name of the Administrative Agent) not less frequently than monthly, in arrears, an amount equal to all Net Cash Flow for such Individual Property as set forth in the
then current Monthly Operating Statement for such Individual Property (the “Trapped Cash Reserve”). 
  
 Section 5.9 Cash Flows; Interest on and Disbursements From Reserves. 
  
 (1) Depository Accounts. 
  
 (a) So long as there is no Event of Default hereunder and no Event of Default shall be created thereby, each
Borrower shall have the right to make disbursements from the Depository Accounts to pay Operating Expenses which 

  

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are then authorized under the Approved Budget. All checks drawn on the Depository Accounts shall require the signatures of two appropriately insured
representatives of such Borrower approved by the Administrative Agent. So long as no Cash Trap Period then exists, any amounts remaining on deposit in the Depository Accounts in excess of those required to pay Operating Expenses as set forth on the
Approved Budget and Debt Service may be released to or for the account of such Borrower and distributed by such Borrower to its respective Members, in each case to the extent that such release would not cause the occurrence of a Cash Trap Period.

  
 (b) If at any time there are insufficient
funds in the Depository Accounts to make the required periodic deposits to the Reserves or to pay Operating Expenses and Debt Service, the Borrowers shall promptly fund from outside sources the amounts necessary to make such required periodic
deposits and to pay all Operating Expenses and Debt Service when due. 
  
 (2) Tax and Insurance Reserve. 
  
 (a) Each Borrower shall furnish the Administrative Agent with bills for the Taxes and insurance charges for which payments are required at least thirty (30) days prior to the date on which the charges first become
payable. If at any time the amount on deposit with the Administrative Agent in the Tax and Insurance Reserve, together with amounts to be deposited by the Borrowers at least thirty (30) days before such charges are payable, is insufficient to pay
such charges, the Borrowers shall deposit any deficiency with the Administrative Agent immediately upon demand. The Administrative Agent shall pay such charges to the extent funds are available on deposit with the Administrative Agent in the Tax and
Insurance Reserve and the Administrative Agent has received a bill for such charges. The Administrative Agent shall have no obligation to make disbursements from the Tax and Insurance Reserve while any Event of Default exists. 
  
 (b) No portion of the funds on deposit in the Tax and
Insurance Reserve shall be required to be released by the Administrative Agent as a result of or in connection with the Release of any Individual Property. 
  
 (3) Capital Expenditure Reserve. 
  

(a) Funds on deposit in the Capital Expenditure Reserve are to be used for (i) FF&E and (ii) the cost of those repairs and
improvements which may be capitalized under the Uniform System of Accounts or, if and to the extent that the Uniform System of Accounts does not address and resolve the categorization of an expenditure, determined using GAAP (each a
“Capital Improvement” and collectively, the “Capital Improvements”), in each case to the extent identified in the then effective Annual Budget or, during any Cash Trap Period, the then effective
Approved Budget, provided that funds on deposit in the Capital Expenditure Reserve may not be applied to expenses of rebranding or paying for 

  

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any major capital projects or expenses involving any of the Properties unless approved in advance by the Administrative Agent on behalf of the Lenders, which
approval shall not be unreasonably withheld. 
  
 (b) The Borrowers may submit an application requesting that the Administrative Agent make a lump sum disbursement from the Capital Expenditure Reserve to pay for expenses incurred for those items of FF&E and/or Capital Improvements that
had been (i) previously contained in the then effective Annual Budget or the Approved Budget, as applicable, or (ii) not so contained but submitted to and approved by the Administrative Agent in writing. If the applicable FF&E or Capital
Improvements are in the Annual Budget or the Approved Budget, as applicable, or are approved by the Administrative Agent, the Administrative Agent shall disburse funds from the Capital Expenditure Reserve to or for the benefit of the Borrowers for
such amounts if each of the following conditions is met: 
  
 (i) The Borrowers shall make such request for a disbursement from the Capital Expenditure Reserve via delivery to the Administrative Agent of a draw request that will include the following: 
  
 (A) an Officer’s Certificate making the request for a
disbursement from the Capital Expenditure Reserve substantially in the form of Exhibit M attached hereto; 
  
 (B) a summary schedule of payments identifying expenditures on an Individual Property basis showing the job number, job name, vendor
name, invoice number and, if applicable, the check number, check date and check amount and sub-total for each Individual Property in the form attached hereto as Exhibit N; and 
  
 (C) unconditional lien waivers and releases from all parties that have provided materials and/or services
in connection with any prior disbursements from the Capital Expenditure Reserve. 
  
 (ii) If the Borrowers’ disbursement request is properly made and documented in accordance with the provisions of this Section, the
Administrative Agent shall disburse the applicable funds from the Capital Expenditure Reserve within five (5) Business Days of receipt of a complete draw request so long as there are sufficient funds in the Capital Expenditure Reserve to satisfy
such request; provided, however, that if at the time of any disbursement an unconditional lien waiver or release remains outstanding from a party that furnished materials and/or services and for which a payment has previously been disbursed from the
Capital Expenditure Reserve, the Administrative Agent shall have the right to 

  

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reserve funds in the Capital Expenditure Reserve in an amount equal to the amount previously disbursed for such materials and/or services. 
  
 (iii) Requests may be submitted no more frequently than on
a monthly basis for any of the Properties unless reasonably necessary under the circumstances. 
  
 (iv) On a quarterly basis, Borrowers will deliver to the Administrative Agent copies of the Job Cost Report – CapEx for each
Individual Property in the form attached hereto as Exhibit O. The Administrative Agent reserves the right to request copies of invoices and to challenge the validity of payments included in previous disbursements and may require an inspection
of any applicable Individual Property related thereto, all at the Borrowers’ expense. The Administrative Agent shall have the right to withhold future disbursements from the Capital Expenditure Reserve if the Administrative Agent subsequently
determines that all the conditions precedent and subsequent for a prior disbursement from the Capital Expenditure Reserve were not satisfied. A disbursement by the Administrative Agent from the Capital Expenditure Reserve shall not be construed as
evidence that all of the conditions for such disbursement were met. Notwithstanding the foregoing, the Administrative Agent shall not have the right to withhold any disbursements based on the insufficiency of draw requests or supporting information
for disbursements paid more than sixteen (16) months prior thereto. 
  
 (c) So long as no Event of Default, Cash Trap Event or Franchisor Warning Event exists, (i) the Administrative Agent will, upon Borrowers’ request, commingle in the Capital Expenditure Reserve the deposits made
by Borrowers pursuant to Section 5.8(2) of this Agreement and said funds shall not be held by the Administrative Agent in separate accounts for each Individual Property and will not be required to be disbursed on an Individual Property by
Individual Property basis; and (ii) a request by a Borrower for disbursement from the Capital Expenditure Reserve with respect to any Individual Property need not be limited to the amount of funds on deposit in the Capital Expenditure Reserve which
are allocable to such Individual Property. 
  
 (d) If an Event of Default, Cash Trap Event or Franchisor Warning Event exists, the Administrative Agent reserves the right to require the Borrowers to establish separate Capital Expenditure Reserve accounts for each Individual Property or
group of Individual Properties and shall not be required, in connection with any request by a Borrower for a disbursement related to any Individual Property or, if applicable, group of Individual Properties, to disburse from the Capital Expenditure
Reserve any amounts which are in excess of the funds then on deposit in the Capital Expenditure Reserve which are allocable to such Individual Property or, if applicable, group of Individual Properties. 
  

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 (e) No portion of the funds on deposit in the Tax and Insurance Reserve shall be required
to be released by the Administrative Agent as a result of or in connection with the Release of any Individual Property. 
  
 (f) The Administrative Agent shall have no obligation to make disbursements from the Capital Expenditure Reserve while any Event of
Default exists. 
  
 (4) Deferred
Maintenance Reserve. 
  
 (a) Funds on
deposit in the Deferred Maintenance Reserve are to be applied to the cost of those repairs and replacements designated on Schedule 7 in accordance with the provisions hereinafter set forth. 
  
 (b) The Borrowers may submit an application requesting that
the Administrative Agent make a disbursement from the Deferred Maintenance Reserve to pay for expenses incurred in connection with such deferred maintenance items. If the applicable deferred maintenance item is in the Approved Budget or is approved
by the Administrative Agent, the Administrative Agent shall disburse funds from the Deferred Maintenance Reserve to or for the benefit of the Borrowers for such amounts if each of the following conditions is met: 
  
 (i) The Borrowers shall make such request via delivery of
the Administrative Agent’s standard form of draw request accompanied by invoices for the amounts requested, together with (as applicable) paid receipts for all costs that were the subject of any prior disbursements from the Deferred Maintenance
Reserve and lien waivers and releases from all parties furnishing materials and/or services in connection with such prior disbursements. The Administrative Agent may issue joint checks payable to the applicable Borrowers and the supplier,
materialmen, mechanic, subcontractor or other party to whom payment is due. The Administrative Agent may require an inspection of the applicable Individual Property at the Borrowers’ expense prior to making a disbursement related thereto.

  
 (ii) Requests may be submitted no more
frequently than on a monthly basis for any of the Properties unless reasonably necessary under the circumstances. 
  
 (iii) The Administrative Agent shall have no obligation to make disbursements from the Deferred Maintenance Reserve while any Event of
Default exists. 
  
 (5) Ground Lease Rent
Reserve. 
  
 (a) If any Borrower fails to
make timely payment of rent under any of the Ground Leases, the Administrative Agent may disburse any portion of the funds then on deposit in the Ground Lease Rent Reserve to the extent necessary to cure 

  

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such failure or to make such timely payment, as applicable, together with any default interest, late charges or other amounts that may be due and payable
under such Ground Lease in connection therewith. In making any such disbursement, the Administrative Agent shall not be limited by the amount of funds on deposit in the Ground Lease Rent Reserve which are allocable to the Individual Property or to
the Ground Lease on account of which such payment is being made. 
  
 (b) In the event that any of the Individual Properties which is the subject of a Ground Lease is Released, the Administrative Agent shall promptly the disburse to Borrower an amount equal to the funds on deposit in
the Ground Lease Rent Reserve which are allocable to such Individual Property, provided that immediately after such disbursement the Ground Lease Rent Reserve shall contain an amount equal to two (2) times the sum of the monthly ground rents which
will be payable under the Ground Leases affecting the Individual Properties then remaining as security for the Loans. 
  
 (6) Trapped Cash Reserve. 
  
 (a) The Administrative Agent shall make disbursements from the Trapped Cash Reserve from time to time as requested in writing by the
Borrowers (but not more frequently than monthly) for payment of (i) Operating Expenses which are in accordance with the Approved Budget, but not including any Operating Expenses for which reserves exist under the Capital Expenditure Reserve,
Deferred Maintenance Reserve or Ground Lease Rent Reserve, (ii) shortfalls on Debt Service payments, and (iii) repairs, upgrades or improvements to the Properties which are in accordance with the Approved Budget but for which funds are not available
from the Capital Expenditure Reserve, in each case with the prior written approval of the Administrative Agent, not to be unreasonably withheld. 
  
 (b) The Borrowers shall make such request via delivery of the Administrative Agent’s standard form of draw request accompanied by
invoices for the amounts requested, together with (as applicable) paid receipts for all costs that were the subject of any prior disbursements from the Trapped Cash Reserve and lien waivers and releases from all parties furnishing materials and/or
services in connection with such prior disbursements. The Administrative Agent may issue joint checks payable to the applicable Borrowers and the supplier, materialmen, mechanic, subcontractor or other party to whom payment is due. The
Administrative Agent may require an inspection of the applicable Individual Property at the Borrowers’ expense prior to making a disbursement related thereto. 
  
 (c) Upon the termination of any Cash Trap Period, any amounts remaining on deposit in the Trapped Cash
Reserve shall be released by the Administrative Agent to the Borrowers in accordance with their written instructions. 
  

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 (d) Requests for withdrawals of funds in the Trapped Cash Reserve may be submitted no
more frequently than on a monthly basis for any of the Properties unless reasonably necessary under the circumstances. 
  
 (e) The Administrative Agent shall have no obligation to make disbursements from the Trapped Cash Reserve while any Event of Default
exists. 
  
 Section 5.10 Pledge and Grant of Security
Interest. Each Borrower hereby pledges to the Administrative Agent (on behalf of the Lenders), and grants a security interest in, any and all monies now or hereafter deposited in any of the Depository Accounts and Reserves from time to time
as additional security for the payment of the Loans. Each Borrower shall not further pledge, assign or grant any security interest in any of the Depository Accounts or Reserves (or any monies on deposit therein from time to time) or permit any lien
or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 financing statements (except those naming the Administrative Agent as the secured party) to be filed with respect thereto. Upon the occurrence of an Event of Default, the
Administrative Agent may apply any sums then present in the Depository Accounts or Reserves to the payment of the charges for which such funds have been deposited or to the payment of the Loans or any other charges affecting the security of the
Loans, as the Administrative Agent may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by the Administrative Agent. Until expended or applied as above provided, such funds shall
constitute additional security for the Loans. 
  
 Section 5.11
Interest on Funds in Reserves. 
  
 (1) Monies on deposit in the Reserves from time to time shall be invested by the Administrative Agent in Permitted Investments selected by it in its discretion from time to time. The Administrative Agent shall not be obligated to obtain any
specified rate of return with respect to any investments of such funds and in no event shall the Administrative Agent be liable for any loss of the principal amount of such funds, the risk of such losses to be borne solely by the Borrowers (unless
such loss is caused by the Administrative Agent’s conversion or misappropriation of such funds). 
  
 (2) Any interest income earned on funds on deposit in the Trapped Cash Reserve shall be redeposited in the Trapped Cash Reserve and shall
become part of the Trapped Cash Reserve and constitute additional security for the Loans. 
  
 (3) Any interest income earned on the Tax and Insurance Reserve or the Ground Lease Rent Reserve shall accrue for the benefit of the
Lenders. Such funds shall be disbursed to the Lenders on a quarterly basis. 
  
 (4) Any interest income earned on the Capital Expenditure Reserve or the Deferred Maintenance Reserve accrue for the benefit of the Borrowers, in accordance with their respective rights to such reserved funds. Such
funds shall be disbursed to the Borrowers on a quarterly basis, provided that if an Event of Default has occurred and is continuing, any interest that would otherwise be distributable to the Borrowers shall be redeposited in the applicable Reserve
Accounts and constitute additional security for the Loans. 
  

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 ARTICLE VI 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Each of the Borrowers jointly and severally represents and warrants to the Administrative Agent and Lenders and, with respect to Section 6.27,
jointly and severally covenants to the Administrative Agent and Lenders that it shall, or shall cause: 
  
 Section 6.1 Organization, Power and Authority. Each Borrower and each Borrower Party (1) is duly organized, validly existing and in good
standing under the laws of the state of its formation or existence and (2) is in compliance with all legal requirements applicable to doing business in the State. Each Borrower and each Borrower Party has the full power, authority and right to
execute, deliver and perform its obligations pursuant to this Agreement and the other Loan Documents to which it is a party. Each Borrower has the full power, authority and right to mortgage each Individual Property pursuant to the terms of the
applicable Mortgage. 
  
 Section 6.2 Validity of Loan
Documents. The execution, delivery and performance by each Borrower and each Borrower Party of the Loan Documents to which it is a party: (1) are duly authorized and do not require the consent or approval of any other party or governmental
authority which has not been obtained; and (2) will not violate any law or result in the imposition of any lien, charge or encumbrance upon the assets of any such party, except as contemplated by the Loan Documents. The Loan Documents constitute the
legal, valid and binding obligations of each Borrower and each Borrower Party, in each case to the extent a party thereto, enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency, or similar laws generally
affecting the enforcement of creditors’ rights. 
  
 Section
6.3 No Conflicts. The execution, delivery and performance of this Agreement and the other Loan Documents by each Borrower and each Borrower Party, in each case to the extent a party thereto, will not conflict with or result in a breach
of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance (other than pursuant to the Loan Documents) upon any of the property or assets of such party pursuant to
the terms of any indenture, mortgage, deed of trust, loan agreement, operating agreement or other agreement or instrument to which it is a party or by which any of its property or assets is subject, nor will such action result in any violation of
the provisions of any statute or any order, rule or regulation of any court or governmental agency or body having jurisdiction over such party or any of such party’s properties or assets, and any consent, approval, authorization, order,
registration or qualification of or with any court or any such regulatory authority or other governmental agency or body required for the execution, delivery and performance by each Borrower of this Agreement or any other Loan Documents has been
obtained and is in full force and effect. 
  
 Section 6.4
Liabilities; Litigation. 
  
 (1)
All financial data of the Borrowers including, without limitation, the statements of cash flow and income and operating expense, that have been delivered by or with respect to any Borrower, any Borrower Party or any Individual Property (i) are true,
complete and correct in all material respects, (ii) accurately represent the financial condition of the 

  

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Borrowers, the Borrower Parties and Properties, as applicable, 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. Other than the Loans, no Borrower has any contingent liabilities, liabilities for taxes, unusual forward or
long-term commitments or unrealized or anticipated losses from any unfavorable commitments that are known to any Borrower and reasonably likely to have a materially adverse effect on the Properties or the operation thereof as hotels, except as
referred to or reflected in said financial statements. Since the date of the financial statements, there has been no materially adverse change in the financial condition, operations or business of any Borrower, any Borrower Party or any Property
from that set forth in said financial statements. There is no litigation, administrative proceeding, investigation or other legal action (including any proceeding under any state or federal bankruptcy or insolvency law) pending or, to the knowledge
of any Borrower, threatened, against the Properties, any Borrower or any Borrower Party which if adversely determined could have a material adverse effect on such party, the Properties or the Loans. 
  
 (2) Neither any Borrower nor any Borrower Party is
contemplating either the filing of a petition by it under state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of its assets or property, and neither any Borrower nor any Borrower Party has knowledge of any
Person contemplating the filing of any such petition against it. 
  
 Section 6.5 Taxes and Assessments. Except for any Permitted Encumbrances, there are no pending, proposed, special or other assessments for public improvements or otherwise affecting the Properties, nor to each Borrower’s
best knowledge are there any contemplated improvements to the Properties that may result in such special or other assessments. 
  
 Section 6.6 Other Agreements; Defaults. Neither any Borrower nor any Borrower Party is a party to any agreement or instrument or subject to
any court order, injunction, permit, or restriction which might materially adversely affect any of the Properties or the business, operations, or condition (financial or otherwise) of any Borrower or any Borrower Party. Neither any Borrower nor any
Borrower Party is in violation of any agreement which violation would have a material adverse effect on any of the Properties, any Borrower or any Borrower Party, any Borrower’s or any Borrower Party’s business, properties, or assets,
operations or condition, financial or otherwise. 
  
 Section 6.7
Title. Each Borrower has good, marketable and insurable title to the Properties, free and clear of all Liens whatsoever except the Permitted Encumbrances. Each Mortgage and the related security instrument creates (1) a valid, perfected
Lien on the applicable Individual Property, subject only to Permitted Encumbrances and (2) perfected security interests in and to, and perfected collateral assignments of, all Personalty (including the Leases), all in accordance with the terms
thereof, in each case subject only to any applicable Permitted Encumbrances and such other Liens as are permitted pursuant to the Loan Documents. Except as otherwise disclosed on Schedule 14 attached hereto, there are no claims for payment
for work, labor or materials affecting any of the Properties which are or may become a Lien prior to, or of equal priority with, the Liens created by the Loan Documents. 
  

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 Section 6.8 Compliance with Law. 
  
 (1) Each Borrower has the necessary governmental approvals
to own the Individual Properties owned by it, and each Borrower and Operator has the necessary governmental approvals to operate the respective Individual Properties operated by it and to conduct the business now conducted or to be conducted
thereon. 
  
 (2) Each Borrower and each Operator
has all requisite licenses, permits, franchises, qualifications, certificates of occupancy or other governmental authorizations to own, lease and operate each of the Properties, as applicable, and carry on its business, and each of the Properties is
in compliance with all applicable Legal Requirements and is free of structural defects, and all building systems contained therein are in good working order, subject to ordinary wear and tear. To the best of each Borrower’s knowledge, none of
the Properties constitutes, in whole or in part, a legally non-conforming use under applicable Legal Requirements; 
  
 (3) Except as set forth on Exhibit F attached hereto, no Condemnation has been commenced or, to any Borrower’s knowledge, is
contemplated with respect to all or any portion of the Properties or for the relocation of roadways providing access to the Properties; and 
  
 (4) Each Individual Property has adequate rights of access to public ways and is served by adequate water, sewer, sanitary sewer
(including septic) and storm drain facilities. All public utilities necessary or convenient to the full use and enjoyment of each Individual Property are located in the public right-of-way abutting each Individual Property or a private right-of-way
abutting each Individual Property provided that such private right-of-way is an irrevocable covenant running with the land that may be used by the applicable Borrower for all purposes for which public right-of-ways may be used, and all such
utilities are connected so as to serve each Individual Property without passing over other property, except to the extent such other property is subject to a perpetual easement for such utility benefiting the relevant Individual Property or the
applicable utility. All roads necessary for the full utilization of each Individual Property for its current purpose have been completed and dedicated to public use and accepted by all governmental authorities or are private rights-of-way which are
irrevocable covenants running with the land that may be used by the applicable Borrower for all purposes for which public rights-of-ways may be used. 
  
 Section 6.9 Location of Borrowers. Each Borrower’s principal place of business and chief executive offices are located at the address
shown on its respective signature page of this Agreement. No Borrower has had any other principal place of business or chief executive offices in the five (5) year period immediately preceding the execution and delivery of this Agreement.

  
 Section 6.10 ERISA. 
  
 (1) As of the date hereof and throughout the term of the
Loans, (a) each Borrower is not and will not be an “employee benefit plan” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), which is subject to Title I of
ERISA, and (b) the assets of each Borrower do not and will not constitute “plan assets” of one or more such plans for purposes of Title I of ERISA or if after the date hereof the assets of each 

  

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Borrower are plan assets, an applicable prohibited transaction exemption will exist such that the making and/or continuance of the Loans will not be
“Prohibited Transactions” under and as such term is defined in Title I of ERISA and Section 4975 of the Code as determined to the Administrative Agent’s reasonable satisfaction based upon the information delivered to the
Administrative Agent thirty (30) days prior to any assets of any Borrower becoming “plan assets”; and 
  
 (2) As of the date hereof and throughout the term of the Loans (a) each Borrower is not and will not be a “governmental plan”
within the meaning of Section 3(32) of ERISA and (b) transactions by or with any Borrower are not and will not be subject to state statutes applicable to any Borrower regulating investments of and fiduciary obligations with respect to governmental
plans. 
  
 Section 6.11 Forfeiture. There has not
been and shall never be committed by any Borrower or any Borrower Party or, to the best of each Borrower’s knowledge, has never been committed by any other person in occupancy of or involved with the operation or use of the Properties, any act
or omission affording the federal government or any state or local government the right of forfeiture as against the Properties or any part thereof or any monies paid in performance of any Borrower’s obligations under any of the Loan Documents.
Each Borrower hereby covenants and agrees not to commit or permit to exist any act or omission affording such right of forfeiture. 
  
 Section 6.12 Tax Filings. Each Borrower and each Borrower Party has filed all federal, state and local tax returns required to be filed and
have paid or made adequate provision for the payment of all federal, state and local taxes, charges and assessments payable by each Borrower and each Borrower Party, respectively. The tax returns of each Borrower and each Borrower Party properly
reflect the income and taxes of the applicable Borrower and Borrower Party, for the periods covered thereby. 
  
 Section 6.13 Solvency. (1) Neither Borrower nor any Borrower Party has entered into the transaction or any Loan Document with the actual
intent to hinder, delay, or defraud any creditor and (2) each Borrower and each Borrower Party has received reasonably equivalent value in exchange for its obligations under the Loan Documents. Giving effect to the Loans, the fair saleable value of
each Borrower’s assets exceeds and will, immediately following the making of the Loans, exceed such Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed and contingent liabilities. The fair
saleable value of each Borrower’s assets is and will, immediately following the making of the Loans, be greater than such Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on its debts as such
debts become absolute and matured. Each Borrower’s assets do not and, immediately following the making of the Loans will not, constitute unreasonably small capital for such entity to carry out its business as conducted or as proposed to be
conducted. Each Borrower does not intend to, and does not believe that it will, incur Debt and other liabilities (including contingent liabilities and other commitments) beyond its ability to pay such Debt and liabilities as they mature (taking into
account the timing and amounts of cash to be received by it and the amounts to be payable on or in respect of obligations of such party). No petition in bankruptcy has been filed against any Borrower or any Borrower Party in the last seven (7)
years, and neither any Borrower nor any Borrower Party in the last seven (7) years has ever made 

  

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an assignment for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. 
  
 Section 6.14 Full and Accurate Disclosure. (i) All written
information submitted to the Administrative Agent by any Borrower or any Borrower Party and prepared by any Borrower or any Borrower Party or by any other Person that is an Affiliate of a Borrower or a Borrower Party in connection with the Loans or
in satisfaction of the terms thereof, (ii) to the best of the Borrowers’ knowledge, all written information submitted to the Administrative Agent by any Borrower or any Borrower Party and prepared by a third party that is not an Affiliate of
any Borrower or any Borrower Party in connection with the Loans or in satisfaction of the terms thereof, and (iii) all statements of fact made by each Borrower or any Borrower Party in this Agreement or in any other Loan Document, are accurate,
complete and correct in all material respects. No statement of fact made by or behalf of any Borrower or any Borrower Party in this Agreement or in any of the other Loan Documents contains any untrue statement of a material fact or omits to state
any material fact necessary to make statements contained herein or therein not misleading. There is no fact presently known to any Borrower or any Borrower Party which has not been disclosed to the Administrative Agent which materially adversely
affects, nor as far as any Borrower can foresee, is likely to materially adversely affect, any Individual Property or the business, operations or condition (financial or otherwise) of any Borrower or any Borrower Party. 
  
 Section 6.15 Flood Zone. No portion of the improvements
comprising any Individual Property is located in an area identified by the Secretary of Housing and Urban Development or any successor thereto as an area having special flood hazards pursuant to the National Flood Insurance Act of 1968, the Flood
Disaster Protection Act of 1973 or the National Flood Insurance Act of 1994, as amended, or any successor law, or, if located within any such area, the Borrower which owns or the Operator which operates such Individual Property has obtained and will
maintain the insurance prescribed in Section 3.1 hereof. 
  
 Section 6.16 Federal Reserve Regulations. No part of the proceeds of the Loans will be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulations T, U or X of the Board of
Governors of the Federal Reserve System or for any other purpose which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors, or for any purposes prohibited by Legal Requirements or by the terms and
conditions of this Agreement or the other Loan Documents. 
  
 Section 6.17 Not a Foreign Person. Neither any Borrower nor any Borrower Party is a “foreign person” within the meaning of § 1445(f)(3) of the Code. 
  
 Section 6.18 Separate Lots. Each Individual Property is comprised of one (1) or more parcels which constitutes
one (1) or more separate tax lots and does not constitute a portion of any other tax lot not a part of such Individual Property. 
  
 Section 6.19 No Prior Assignment. There are no prior assignments of the Leases or any portion of the Rents due and payable or to become due
and payable which are presently outstanding. 
  

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 Section 6.20 Insurance. Each Borrower has obtained and has delivered to the Administrative
Agent certified copies of all insurance policies reflecting the insurance coverages, amounts and other insurance requirements set forth in this Agreement. Except as set forth in Schedule 4 attached hereto, no claim has been made under any
such Policy the amount of which is reasonably expected to exceed $50,000. No Person, including any Borrower or any Borrower Party, has done, by act or omission, anything which would impair the coverage of any such policy. 
  
 Section 6.21 Use of Properties. Each Individual Property is and
shall be used exclusively as a hotel and other appurtenant and related uses. Without limiting the generality of the foregoing, Sunstone OP covenants and agrees that it shall provide to the Administrative Agent within ten (10) days of receipt thereof
copies of any correspondence or requests received by it from the ground lessor of property located at 1752 South Clementine Avenue, Anaheim, California, relating to a change in zoning to permit time share units, and Sunstone OP shall not give any
consent related thereto without obtaining the prior written consent of the Administrative Agent, not to be unreasonably withheld. 
  
 Section 6.22 Certificate of Occupancy; Licenses. To the best of each Borrower’s knowledge, all certifications, permits, licenses and
approvals, including without limitation, certificates of completion and occupancy permits required for the legal use, occupancy and operation of each of the Individual Properties as a hotel and all current appurtenant and related uses (collectively,
the “Licenses”), have been obtained and are in full force and effect. The Borrowers shall keep and maintain all licenses necessary for the operation of each of the Individual Properties as a hotel. The use of each Individual
Property as a hotel is in conformity with any applicable certificate of occupancy issued for such Individual Property. 
  
 Section 6.23 Physical Condition. Except as expressly set forth in the building condition reports delivered to the Administrative Agent in
connection with the initial advance of the Loans, and to the best of each Borrower’s knowledge: each Individual Property, including, without limitation, all buildings, improvements, parking facilities, sidewalks, storm drainage systems, roofs,
plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment, elevators, exterior sidings and doors, landscaping, irrigation systems and all structural components, are in good condition, order and repair in all material
respects; there exists no structural or other material defects or damages in any Individual Property, whether latent or otherwise, and no Borrower has received written notice from any insurance company or bonding company of any defects or
inadequacies in any Individual Property, or any part thereof, which would adversely affect the insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened termination of any
policy of insurance or bond. 
  
 Section 6.24
Boundaries. Except as disclosed in the Permitted Encumbrances, all of the improvements which were included in determining the appraised value of each Individual Property lie wholly within the boundaries and building restriction lines
of such Individual Property, and no improvements on adjoining properties encroach upon such Individual Property, and no easements or other encumbrances upon the applicable Individual Property encroach upon any of the improvements, so as to
materially adversely affect the value or marketability of the applicable Individual Property except those which are insured against by title insurance. 
  

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 Section 6.25 Survey. To the best of each Borrower’s knowledge, the survey for each
Individual Property delivered to the Administrative Agent in connection with this Agreement does not fail to reflect any material matter affecting such Individual Property or the title thereto. 
  
 Section 6.26 Filing and Recording Taxes. All mortgage, mortgage
recording, stamp, intangible or other similar tax required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of
any of the Loan Documents, including, without limitation, the Mortgages encumbering the Properties have been paid, and, under current Legal Requirements, the Mortgages encumbering the Properties are enforceable in accordance with their respective
terms by the Administrative Agent or any subsequent holder thereof (on behalf of the Lenders), subject to applicable bankruptcy, insolvency, or similar laws generally affecting the enforcement of creditors’ rights. 
  
 Section 6.27 Single Purpose Entity. Each Borrower is and shall
continue to each be a Special Purpose Entity until the Indebtedness is paid in full. A “Special Purpose Entity” means a corporation, limited liability company or limited partnership: 
  
 (1) whose purpose shall be limited solely to, as applicable,
(i) owning, holding, selling, leasing, transferring, exchanging, operating and managing the Properties and any other assets which it owns as of the date hereof and (ii) transacting any and all lawful business for which it may be organized under its
constitutive law that is incident, necessary and appropriate to accomplish the foregoing; 
  
 (2) which shall not acquire any asset or property other than (i) the Properties and any other assets which it owns as of the date hereof,
and/or (ii) incidental Personalty necessary for and used or to be used in connection with the ownership or operation of the Properties and any other assets which it owns as of the date hereof; 
  
 (3) which shall not engage in any business other than the
businesses in which it is engaged as of the date hereof; 
  
 (4) which, except for the Management Agreements specified on Schedule 5A and the Operating Leases specified on Schedule 11, shall not enter into any contract or agreement with any Affiliate, any
constituent party of itself, any of its owners, any guarantors of its obligations, or any Affiliate of any constituent party, owner or guarantor (collectively, the “Related Parties”) of itself, except upon terms and
conditions that are intrinsically fair, commercially reasonable and substantially similar to those that would be available on an arms- length basis with third parties not so affiliated with itself or such Related Parties; 
  
 (5) which shall not make any loans or advances to any Person
and shall not acquire obligations or securities of any Related Party other than those which it has made or owns, as applicable, as of the date hereof; 
  
 (6) which is and shall remain solvent and shall pay its debts and liabilities (including, as applicable, shared personnel and overhead
expenses) from its assets as the same shall become due; 
  

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 (7) which has done or caused to be done and shall do all things necessary to observe
organizational formalities and preserve its existence, and shall not, except as otherwise permitted herein, amend, modify or otherwise change the partnership certificate, partnership agreement, articles of incorporation and bylaws, operating
agreement, trust or other organizational documents without the prior written consent of the Administrative Agent, which consent shall not be unreasonably withheld; 
  
 (8) which shall maintain all of its books, records, financial statements and bank accounts separate from
those of any other Person; except as set forth on Schedule 13 attached hereto, shall file its own tax returns and shall not file a consolidated federal income tax return with any other Person; and shall maintain its books, records,
resolutions and agreements as official records; 
  
 (9) which shall be, and at all times shall hold itself out to the public as, a legal entity separate and distinct from any other Person (including any Affiliate or other related party), shall correct any known misunderstanding regarding its
status as a separate entity, shall conduct business in its own name, shall not identify itself or any of its Affiliates as a division or part of the other and shall maintain and utilize separate checks; 
  
 (10) which shall maintain adequate capital for the normal
obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations; 
  
 (11) which shall not seek its own dissolution, winding up, liquidation, consolidation or merger in whole or in part, or the sale of its
material assets (except as expressly permitted herein); 
  
 (12) which shall not commingle its assets with those of any other Person and shall hold all of its assets in its own name; 
  
 (13) which, except for the Indebtedness, shall not guarantee or become obligated for the debts of any other Person and does not and will
not hold itself out as being responsible for the debts or obligations of any other Person; 
  
 (14) which shall allocate fairly and reasonably any overhead expenses that are shared with an Affiliate, including paying for office space
and services performed by any employee of an Affiliate or related party; 
  
 (15) which shall not pledge its assets for the benefit of any other Person other than with respect to the Loan or as otherwise permitted herein; and 
  
 (16) which shall maintain a sufficient number of employees in light of its contemplated business operations
and pay the salaries of its own employees from its own funds. 
  
 Section 6.28 Management Agreements. Each of the Management Agreements pursuant to which any Borrower or Operator, as applicable, operates the Properties (a) is in full force and effect and there is no default or violation by
any party thereunder and (b) has been entered into with Manager, an Affiliate of the Borrowers. There are no management, operation 

  

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or similar agreements affecting any of the Properties other than as are disclosed on Schedule 5A, and there are no other fee or payment arrangements
in connection with Manager’s performance of its management obligations with respect to each Individual Property except as set forth in the Management Agreements. The Management Agreements disclosed on Schedule 5A (including the
amendments disclosed thereon) represent the full and complete terms and provisions of the management contracts entered into between the respective Operators and the Manager which are in effect as of the date hereof, and there are no amendments,
modifications, or other agreements relating thereto. The fees due under each Management Agreement, and the terms and provisions of each Management Agreement, are subordinate to this Agreement and to each Mortgage and every other Loan Document. The
Manager under each Management Agreement has agreed (a) to attorn to and subordinate its interest in such Management Agreement to the Administrative Agent and (b) that such Management Agreement may be terminated by the Administrative Agent, without
cause, at any time after the occurrence of a monetary Event of Default or the acceleration of the Loans by the Administrative Agent, on behalf of the Lenders, following the occurrence of any Event of Default. 
  
 Section 6.29 Franchise Agreements. Each of the Franchise
Agreements pursuant to which any Borrower, Operator or Manager, as applicable, operates the Properties is in full force and effect; there is no default or violation by any Borrower, Operator or Manager thereunder; and, to the best of each
Borrower’s knowledge, there is no default or violation by any franchisor thereunder. The Franchise Agreements disclosed on Schedule 5B (including the amendments disclosed thereon) represent the full and complete terms and provisions of
the franchise or license contracts entered into between the respective franchisors or licensors and the Manager which are in effect as of the date hereof, and there are no amendments, modifications, or other agreements relating thereto. There are no
franchise or similar agreements affecting any of the Properties other than as are disclosed on Schedule 5B, and there are no other fee or payment arrangements in connection with the franchise rights except as set forth in the Franchise
Agreements. 
  
 Section 6.30 Investment Company Act
Each Borrower is not (1) an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended; (2) a “holding company” or a
“subsidiary company” of a “holding company” or an “affiliate” of either a “holding company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as amended;
or (3) subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money. 
  
 Section 6.31 Interest Rate Cap Agreement. A complete and correct copy of the Interest Rate Cap Agreement provided by the Borrowers for the
benefit of the Administrative Agent (on behalf of the Lenders) is attached hereto as Exhibit G (the “Initial Interest Rate Cap Agreement”). The Interest Rate Cap Agreement is in full force and effect and enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws generally affecting the enforcement of creditors’ rights. Not later than 90 days prior to the expiration of any Interest Rate Cap Agreement, the Borrowers
shall replace the same with an interest rate cap agreement (i) covering an amount not less than the then outstanding principal balance of the Floating Notes, (ii) issued at a strike price identical to the Initial Interest Rate Cap Agreement, (iii)
issued by a counterparty satisfying the Rate Cap Rating Criteria and otherwise reasonably 

  

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satisfactory to the Administrative Agent, and (iv) otherwise in form and substance reasonably satisfactory to the Administrative Agent (the
“Replacement Interest Rate Cap Agreement”). The Borrowers shall maintain in full force and effect an Interest Rate Cap Agreement during the entire term of the Loans so long as any Floating Note has not been paid in full. In
the event that (1) an Interest Rate Cap Agreement is terminated for any reason or is otherwise unenforceable by the Administrative Agent (on behalf of the Lenders) or (2) the counterparty executing the Interest Rate Cap Agreement is not a financial
institution satisfying the Rate Cap Rating Criteria, the Borrowers shall immediately obtain from a financial institution that satisfies the Rate Cap Rating Criteria a replacement Interest Rate Cap Agreement in form and substance satisfactory to the
Administrative Agent in its reasonable discretion. 
  
 Section
6.32 Terrorism and Money Laundering. 
  
 (1) As of the date hereof and throughout the term of the Loans, to the best of each Borrower’s knowledge: (i) each Borrower; (ii) any person or entity Controlling or Controlled by any Borrower; (iii) if any Borrower is a privately held
entity, any person having a beneficial interest in Borrower; or (iv) any person for whom any Borrower is acting as agent or nominee in connection with this transaction, is not a country, territory, individual or entity named on an OFAC list or any
other relevant lists maintained by governmental authorities, and is not a person or entity prohibited under the OFAC Programs. 
  
 (2) To comply with applicable U.S. anti-money laundering laws and regulations, all payments by any Borrower to the Lenders or from any
Lender to any Borrower will only be made in such Borrower’s name and to and from a bank account of a bank based or incorporated in or formed under the laws of the United States or a bank that is not a “foreign shell bank” within the
meaning of the U.S. Bank Secrecy Act (31 U.S.C. § 5311 et seq.), as amended, and the regulations promulgated thereunder by the U.S. Department of the Treasury, as such regulations may be amended from time to time. 
  
 (3) Each Borrower agrees to provide the Administrative Agent
and each Lender at any time and from time to time during the term of the Loans with such information as the Administrative Agent or such Lender determines to be necessary or appropriate to comply with the anti-money laundering laws and regulations
of any applicable jurisdiction, or to respond to requests for information concerning the identity of any Borrower, any person or entity Controlling or Controlled by any Borrower or any person or entity having a beneficial interest in any Borrower,
from any governmental authority, self-regulatory organization or financial institution in connection with its anti-money laundering compliance procedures, or to update such information. 
  
 (4) The representations and warranties set forth in this Section 6.32 shall be deemed repeated and
reaffirmed by each Borrower as of each date that any Borrower makes a payment to any Lender under the Notes and other Loan Documents or receives any payment from any Lender. Each Borrower agrees promptly to notify the Administrative Agent and each
Lender in writing should such Borrower become aware of any change in the information set forth in these representations. 
  

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 ARTICLE VII 
  
 FINANCIAL REPORTING 
  
 Section 7.1 Financial Statements. 
  
 (1) Obligations of Borrowers. Each Borrower will keep and maintain or will cause to be kept and maintained, in accordance
with GAAP proper and accurate books, records and accounts reflecting the financial affairs of such Borrower and income and expense in connection with the operation on an individual basis of each of the Individual Properties. The Administrative Agent
and any Lender shall have the right from time to time at all times during normal business hours, upon reasonable advance notice, to examine such books, records and accounts at the office of such Borrower or at the Individual Property and to make
such copies or extracts thereof as the Administrative Agent or Lender shall desire. Upon the occurrence of any Event of Default (following any required notice from the Administrative Agent to the Borrowers and following the expiration of any
applicable cure period), each Borrower shall pay any costs and expenses incurred by the Administrative Agent to examine each Borrower’s accounting records with respect to the Properties, as the Administrative Agent shall determine to be
necessary or appropriate in the protection of the Lenders’ interests. 
  
 (2) Monthly Reports. Each Borrower shall deliver or shall cause to be delivered to the Administrative Agent, within thirty (30) days after the end of each calendar month during the term of the Loans, a
report for each Individual Property which shows room availability and occupancy, Operating Revenues, Operating Expenses, overhead costs and other information with respect to such Individual Property during the preceding month, together with a report
showing the same information for all of the Properties, on a cumulative basis, during the preceding month (collectively, the “Monthly Operating Statement”). Each Monthly Operating Statement shall be prepared in a manner
consistent with the Uniform System of Accounts, shall be in the form of Exhibit I attached hereto, and shall be accompanied by a certificate signed by the chief financial officer of the Borrowers stating that to such officer’s knowledge
the attached Monthly Operating Statement is true, correct, accurate and complete and fairly presents the results of the operations of each Individual Property and all of the Properties on a cumulative basis. The Borrowers shall provide the
Administrative Agent with the Monthly Operating Statement in electronic form only (unless otherwise requested by the Administrative Agent), provided that with the delivery of the Monthly Operating Statement for December of each year during the term
of the Loans, the Borrowers shall provide the Administrative Agent with a hard copy of such Monthly Operating Statement, together with supporting documentation and cumulative detailed backup for the contents of such Monthly Operating Statement.

  
 (3) Quarterly Reports. Each
Borrower shall deliver or shall cause to be delivered to the Administrative Agent, within forty-five days after the end of each calendar quarter ending March 31, June 30 and September 30 (a) a report for each Individual Property in the form of
Exhibit J attached hereto which shows, among other things, the actual, forecast and variance figures for each Individual Property during the preceding quarter, together with a report showing the same information for all of the Properties, on
a cumulative basis, during the preceding quarter (collectively, the “Remainder of Year Quarterly Report”) and (b) a report for each Individual Property in the form of Exhibit K attached hereto which shows, among other

  

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things, the trailing twelve-month performance of each Individual Property during the preceding quarter, together with a report showing the same information
for all of the Properties, on a cumulative basis, during the preceding quarter (collectively, the “Trailing 12-Month Quarterly Report”and, together with the Remainder of Year Quarterly Report, the “Quarterly
Report”). Each Quarterly Report shall be prepared in a manner consistent with the Uniform System of Accounts and shall be accompanied by (a) a certificate signed by the chief financial officer of the Borrowers stating that to such
officer’s knowledge the attached Quarterly Report is true, correct, accurate and complete and fairly presents the results of the operations of each Individual Property and all of the Properties on a cumulative basis and (b) the most recent STR
Report for each Individual Property. The Borrowers shall provide the Administrative Agent with the Quarterly Report and each STR Report in electronic form only (unless otherwise requested by the Administrative Agent). 
  
 (4) Annual Reports. Within one hundred twenty
(120) days after the end of each calendar year, the Borrowers shall furnish to the Administrative Agent the following annual financial statements and related certifications and opinions: 
  
 (a) Consolidated financial statements audited by a “big four” accounting firm or other nationally
recognized accounting firm reasonably acceptable to the Administrative Agent in accordance with GAAP covering Sunstone for such calendar year, and which shall include (i) a consolidated balance sheet, consolidated statement of operations,
consolidated statement of cash flow and consolidated statements of changes in members’ equity, (ii) the notes to such consolidated financial statements, and (iii) with respect to Sunstone, an unqualified opinion by the accounting firm which is
rendering such financial statements. 
  
 (b) A
balance sheet, statement of operations and statement of cash flow for each Borrower for such calendar year. 
  
 (c) A certificate executed by the chief financial officer of Sunstone and of each Borrower stating that, to the best of said chief
financial officer’s knowledge, all of such financial statements, balance sheets, statements of operations and statements of cash flow (i) present fairly in all material respects the financial condition and the results of operations of Sunstone,
each Borrower, and the Properties and (ii) have been prepared in accordance with GAAP. 
  
 (5) Certification; Supporting Documentation. Each such financial statement shall (a) be certified by the chief financial
officer of the applicable Borrower, (b) be derived from the Books and Records maintained by each Borrower either at the applicable Individual Property or at the corporate office of the Borrowers located at 903 Calle Amanecer, Suite 100, San
Clemente, CA 92673, (c) follow the general form set forth in the Uniform System of Accounts, and (d) be accompanied with copies of supporting documentation to the extent that the Administrative Agent shall request. 
  
 (6) Additional Reports. Each Borrower shall
deliver to the Administrative Agent such other information relating to the Borrowers, Operators or Properties as it may 

  

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reasonably request as soon as reasonably available but in no event later than thirty (30) days after such information becomes available to such Borrower in
final form. 
  
 (7) Officer
Certificates. The chief financial officer of the Borrowers shall not be personally liable for any inaccuracies contained in the officer certificates and related deliveries required by Sections 7.1(2), (3), (4) and (5) hereof.

  
 Section 7.2 Accounting Principles. All financial
statements shall be prepared in accordance with generally accepted accounting principles in the United States of America as in effect on the date so indicated and consistently applied, as supplemented by the Uniform System of Accounts
(“GAAP”) (or such other accounting basis reasonably acceptable to the Administrative Agent). 
  
 Section 7.3 Other Information; Access. Each Borrower shall deliver to the Administrative Agent such additional information regarding such
Borrower, its subsidiaries, its business, any Borrower Party and any Individual Property within thirty (30) days after the Administrative Agent’s reasonable request therefor. The Administrative Agent shall have the right to choose and appoint a
certified public accountant to perform financial audits as it deems necessary, at Lender’s expense; provided, however, upon the occurrence of an Event of Default and prior to the acceptance of a cure thereof by the Administrative Agent such
audits may be performed at the Borrowers’ expense. 
  
 Section 7.4 Format of Delivery. Any reports, statements or other information required to be delivered under this Agreement shall be delivered (1) in paper form (unless a specific section of this Agreement states that any such
reports, statements or other information shall be delivered only in electronic form) and (2) electronically via e-mail or by delivery of a CD-ROM or other digitally readable device which is compatible with the Administrative Agent’s computer
hardware and software and using a Microsoft Word for Windows or WordPerfect for Windows files (which files may be prepared using a spreadsheet program and saved as word processing files). 
  
 ARTICLE VIII 
  
 COVENANTS 
  
 Each Borrower covenants and agrees with the Administrative Agent and the Lenders as follows: 
  
 Section 8.1 Due on Sale and Encumbrance; Transfers of Interests. 
  
 (1) Other than those created by the Loan Documents, without
the prior written consent of the Administrative Agent and the Lenders (to the extent required under Section 11.2), and except as expressly permitted by Section 8.1(2): 
  
 (a) neither (i) any Borrower, (ii) any Borrower Party, (iii) any other Person having a direct or indirect
ownership or beneficial interest in any Borrower or any Borrower Party, nor (iv) any Person that is a manager of any Borrower or any Borrower Party shall (A) directly or indirectly sell, transfer, convey, 

  

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mortgage, pledge, or assign any interest in any Individual Property or any part thereof (including any partnership, limited liability company or any other,
direct or indirect, ownership or management interest in any Borrower or any Borrower Party); (B) further encumber, alienate, grant a monetary Lien or grant any other interest in any Individual Property or any part thereof (including any partnership,
limited liability company or management interest or other, direct or indirect, ownership interest in any Borrower or any Borrower Party), whether voluntarily or involuntarily; or (C) enter into any easement or other agreement granting rights in or
restricting the use or development of any Individual Property which materially and adversely affects the value of an Individual Property as determined by the Administrative Agent; 
  
 (b) no new general partner, manager, member or limited partner having the ability to Control the affairs of
any Borrower or any Borrower Party shall be admitted to or created in any Borrower, any Borrower Party or any other Person having a direct or indirect interest (including a management or ownership interest) in any Borrower or any Borrower Party (nor
shall any existing general partner, manager, member or Controlling limited partner withdraw from any Borrower, any Borrower Party or any other Person having a direct or indirect interest (including a management or ownership interest) in any Borrower
or any Borrower Party), and no change in any Borrower’s or any Borrower Party’s organizational documents relating to Control over any Borrower or any Borrower Party and/or any Individual Property shall be effected; and 
  
 (c) no transfer shall be permitted which would cause
Sunstone and Westbrook Partners not to maintain one hundred percent (100%) direct or indirect Control of any Borrower or any Borrower Party and any manager of any such entity during the entire term of the Loans or cause any Borrower not to be
Controlled and majority-owned, whether directly or indirectly, at all times by Sunstone and Westbrook Partners. 
  
 (2) Notwithstanding anything to the contrary contained in this Section 8.1, the following transfers and other transactions shall be
permitted and not be deemed a violation or breach of the provisions of Section 8.1(1): 
  
 (a) Releases completed in accordance with the requirements of Section 2.7. 
  
 (b) The transfer by Westbrook Partners of up to forty-nine
and nine-tenths percent (49.9%) of the direct or indirect legal or beneficial ownership of Sunstone, so long as Westbrook Partners at all times continues to own at least fifty and one-tenth percent (50.1%) of the direct or indirect legal or
beneficial interest in Sunstone and to Control Sunstone. 
  
 (c) A public offering of equity interests in Sunstone or any parent company which directly or indirectly owns Sunstone, so long as immediately after the completion of such public offering Westbrook Partners continues
to Control 

  

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Sunstone, provided, however, that if the Delevering Prepayment has been made, Westbrook Partners need not continue to Control Sunstone immediately after the
completion of such public offering. 
  
 (d) A
public offering of equity interests in any subsidiary owned directly by Sunstone which is not a Borrower Party and which does not own, directly or indirectly, any legal or beneficial interests in any Borrower, Manager, Operator or Individual
Property. 
  
 (e) A merger of either Sunstone or
a subsidiary of Sunstone with and into a public company or privately held company, or any similar transaction involving Sunstone or a subsidiary of Sunstone, so long as immediately after the completion of such merger or similar transaction (i) the
tangible net worth (exclusive of goodwill) of the surviving entity shall be equal to or greater than $250,000,000 and (ii) the surviving entity shall have a ratio of debt to book assets that does not exceed 65%. 
  
 (3) As used in this Section 8.1, “transfer”
shall include the sale, transfer, conveyance, mortgage, pledge, or assignment of the legal or beneficial ownership of (a) any Individual Property, (b) any partnership interest in any general partner in any Borrower or any Borrower Party that is a
partnership, (c) any membership interest in any member, or non-member manager, of any Borrower or any Borrower Party that is a limited liability company, and (d) any voting stock in any general partner in any Borrower or any Borrower Party that is a
corporation; “transfer” shall not include (i) the leasing of space within the Properties so long as each Borrower complies with the provisions of the Loan Documents relating to such leasing activity and (ii) the Release of any Individual
Property in compliance with the terms of Section 2.7 or Section 3.3(3) hereof. 
  
 Section 8.2 Taxes; Charges. Each Borrower shall pay before any fine, penalty, interest or cost may be added thereto, and shall not enter into any agreement to defer, any real estate taxes and
assessments, franchise taxes and charges, and other governmental charges that may become a Lien upon any Individual Property or become payable during the term of the Loans (the “Taxes”), and will promptly furnish the
Administrative Agent with evidence of such payment; however, each Borrower’s compliance with Sections 5.8(1) and 5.9(2) of this Agreement relating to impounds for taxes and assessments shall, with respect to payment of such taxes and
assessments, be deemed compliance with this Section 8.2. No Borrower shall suffer or permit the joint assessment of any Individual Property with any other real property constituting a separate tax lot or with any other real or personal
property. Each Borrower shall pay when due all claims and demands of mechanics, materialmen, laborers and others which, if unpaid, might result in a Lien on any Individual Property; however, so long as no Event of Default (following any required
notice from the Administrative Agent to the Borrowers and following the expiration of any applicable cure period) shall exist, a Borrower may contest the validity of such claims and demands or Taxes so long as (a) such Borrower notifies the
Administrative Agent that it intends to contest such claim or demand or Taxes, (b) such Borrower provides the Administrative Agent with cash or an irrevocable letter of credit issued by a financial institution satisfactory to the Administrative
Agent in an amount equal to 110% of the contested amount or such other security satisfactory to the Administrative Agent in its reasonable discretion (including an endorsement to 

  

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the Administrative Agent’s title insurance policy insuring against such claim or demand) assuring the discharge of such Borrower’s obligations for
such claims and demands or payment of Taxes, including interest and penalties, and (c) such Borrower is diligently contesting the same by appropriate legal proceedings in good faith and at its own expense and concludes such contest or obtains a stay
thereof prior to the thirtieth (30th) day preceding the date on which any Individual Property is scheduled to be sold for non-payment. In the event that any Borrower is contesting any Taxes in accordance with this Section 8.2, the
Administrative Agent shall not pay such Taxes as required pursuant to Section 5.9(2) hereof provided that such Borrower provides the Administrative Agent with (i) a written request to cease payment of Taxes and (ii) evidence reasonably
satisfactory to the Administrative Agent that the Taxes are being contested in accordance with this Section 8.2. 
  
 Section 8.3 Control; Management. There shall be no change in any of the Managers under any of the Management Agreements or otherwise with
respect to the Properties without the prior written consent of the Administrative Agent. No Borrower shall terminate, replace or appoint any property manager or terminate, cancel, or materially modify the Management Agreement or enter into any
agreement relating to the management or operation of the Properties with Manager or any other Person without the Administrative Agent’s prior written reasonable approval; provided, so long as no Event of Default exists and Borrower provides
written notice to the Administrative Agent, the Borrowers may, upon the expiration of the term of any Management Agreement, extend or renew said Management Agreement on substantially the same terms and conditions as the then existing Management
Agreement and, with the Administrative Agent’s prior written approval, not to be unreasonably withheld, to make such revisions thereto as may be reasonably required for tax planning purposes of the Borrowers and/or the Borrower Parties. Each
Borrower, upon the request of the Administrative Agent, shall terminate the Manager, without penalty or fee, if at any time during the Loans, (1) the Manager shall become insolvent or a debtor in any bankruptcy or insolvency proceeding, (2) the
Manager is in default under the Management Agreement beyond any applicable notice and cure period or (3) there exists a monetary Event of Default or the Loans have been accelerated by the Administrative Agent, on behalf of the Lenders, following the
occurrence of any Event of Default. At such time as the Manager may be so removed, a replacement manager and management agreement acceptable to the Administrative Agent shall assume management of the Properties and shall receive a property
management fee not to exceed then current market rates. If at any time the Administrative Agent consents to the appointment of a new manager, such new manager and each Borrower shall, as a condition of the Administrative Agent’s consent,
execute a Manager’s Consent and Subordination of Management Agreement in the form then used by the Administrative Agent. Each property manager shall be required to hold and maintain all necessary licenses, certifications and permits required by
law. Each Borrower shall fully perform all of its covenants, agreements and obligations under the Management Agreement. 
  
 Section 8.4 Operation; Maintenance; Inspection. 
  
 (1) Each Borrower shall observe and comply with all Legal Requirements applicable to the ownership, use and operation of the Properties
unless it contests such Legal Requirement in the same manner as it would contest Taxes pursuant to Section 8.2 hereof. Each Borrower shall maintain the Properties in good condition and promptly repair any damage or casualty. Each Borrower
shall permit the Administrative Agent and the Lenders and their agents, 

  

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representatives and employees, upon reasonable prior notice to the Borrowers and during normal business hours, to inspect the Properties and conduct such
environmental and engineering studies as the Administrative Agent may require subject to Section 4.3(3), provided such inspections and studies do not materially interfere with the use and operation of the Properties and the costs and expenses
related thereto are paid by the Administrative Agent, unless such costs and expenses are to be paid by the Borrowers pursuant to any other section contained herein or the other Loan Documents. 
  
 (2) With respect to the Four Points Sheraton Silverthorne
located at 560 Silverthorne Lane, Silverthorne, Colorado, the Borrowers, within six (6) months after the date hereof, shall cure all defaults under the Franchise Agreement relating to such facility arising from such facility’s failure of the
“Guest Satisfaction Index” relating thereto. 
  
 (3) With respect to the Embassy Suites located at 9801 Airport Boulevard, Los Angeles, California, the Borrowers, within six (6) months after the date hereof, shall cure all defaults under the Franchise Agreement relating to such facility
arising from the failure of such facility to comply with the “Product Improvement Plan” relating thereto. 
  
 Section 8.5 Taxes on Security. Without duplication of the requirements contained in Section 2.6 hereof, the Borrowers shall pay all
taxes, charges, filing, registration and recording fees, excises and levies payable with respect to the Notes or the Liens created or secured by the Loan Documents, other than income, franchise and doing business taxes imposed on the Administrative
Agent or any Lender. If there shall be enacted any law (1) deducting the Loans from the value of any Individual Property for the purpose of taxation, (2) affecting any Lien held by the Administrative Agent or any Lender on any Individual Property,
or (3) changing existing laws of taxation of mortgages, deeds of trust, security deeds, or debts secured by real property, or changing the manner of collecting any such taxes so as to increase the amount of taxes payable by the Administrative Agent
or any Lender, the Borrowers shall promptly pay to the Administrative Agent, on demand, all taxes, costs and charges relating to the Loans for which the Administrative Agent or any Lender is or may be liable as a result thereof; however, if such
payment would be prohibited by law or would render the Loans usurious, then instead of collecting such payment, the Administrative Agent may (and on the request of the Controlling Lenders shall) declare all amounts owing under the Loan Documents to
be immediately due and payable within thirty (30) days thereafter without any Prepayment Fee (except a Libor Breakage Fee, if such payment is made on a day other than on the last day of an Interest Period). 
  
 Section 8.6 Legal Existence; Name; Etc. Each Borrower shall
preserve and keep in full force and effect its existence as a Special Purpose Entity as required pursuant to Section 6.27 hereof, and no Borrower shall change its name, identity, or the location of its chief executive office or principal
place of business unless such Borrower (a) shall have provided the Administrative Agent at least 30 days prior written notice thereof, and (b) shall have taken all actions necessary or requested by the Administrative Agent to file or amend any
financing statement or continuation statement to assure perfection and continuation of perfection of security interests under the Loan Documents. 
  
 Section 8.7 Affiliate Transactions. Without the prior written consent of the Administrative Agent, which shall not be unreasonably withheld,
delayed or conditioned, no 

  

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Borrower may engage in any transaction affecting any Individual Property with an Affiliate of any Borrower, other than the Management Agreements and the
Operating Leases. 
  
 Section 8.8 Further
Assurances. Each Borrower shall promptly (1) cure any defects in the execution and delivery of the Loan Documents, and (2) execute and deliver, or cause to be executed and delivered, all such other documents, agreements and instruments as
the Administrative Agent may reasonably request to further evidence and more fully describe the collateral for the Loans, to correct any omissions in the Loan Documents, to perfect, protect or preserve any liens created under any of the Loan
Documents, or to make any recordings, file any notices, or obtain any consents, as may be necessary or appropriate in connection therewith. 
  
 Section 8.9 Estoppel Certificates. Each Borrower, within ten (10) Business Days after request, shall furnish to the Administrative Agent a
written statement, duly acknowledged, setting forth the amount due on the Loans, the terms of payment of the Loans, the date to which interest has been paid, whether to the best of such Borrower’s knowledge any offsets or defenses exist against
the Loans and, if any are alleged to exist, the nature thereof in detail, and such other matters as the Administrative Agent reasonably may request. 
  
 Section 8.10 Notice of Certain Events. Each Borrower shall promptly notify the Administrative Agent of (1) any Event of Default, together
with a detailed statement of the steps being taken to cure such Event of Default; (2) any written notice of default received by such Borrower or the Operator under other obligations relating to the Properties or otherwise material to such
Borrower’s business; and (3) any threatened or pending legal, judicial or regulatory proceedings, including any dispute between a Borrower or an Operator and any governmental authority, materially adversely affecting such Borrower, Operator or
any Individual Property. 
  
 Section 8.11
Indemnification. Each Borrower shall indemnify, defend and hold the Administrative Agent and each Lender harmless from and against any and all losses, liabilities, claims, damages, expenses, obligations, penalties, actions, judgments,
suits, costs or disbursements of any kind or nature whatsoever, including the reasonable fees and actual expenses of their counsel, in connection with (1) any inspection, review or testing of or with respect to any Individual Property (the costs and
expenses of such inspection, review or testing shall be paid as otherwise set forth in this Agreement), (2) any investigative, administrative, mediation, arbitration, or judicial proceeding, whether or not the Administrative Agent or any Lender is
designated a party thereto, commenced or threatened at any time (including after the repayment of the Loans) in any way related to the execution, delivery or performance of any Loan Document or to any Individual Property, (3) any proceeding
instituted by any Person claiming a Lien, and (4) any brokerage commissions or finder’s fees claimed by any broker or other party in connection with the Loans, any Individual Property, or any of the transactions contemplated in the Loan
Documents due to other than the Administrative Agent’s or Lender’s acts, including with respect to the foregoing items (1) through (4) those arising from the joint, concurrent, or comparative negligence of the Administrative Agent or any
Lender, except to the extent any of the foregoing is caused by the Administrative Agent’s or any Lender’s gross negligence or willful misconduct. 
  
 Section 8.12 Payment for Labor and Materials. Each Borrower will promptly pay when due all bills and costs for labor, materials, and
specifically fabricated materials incurred in 

  

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connection with any Individual Property and never permit to exist beyond the due date thereof in respect of any Individual Property or any part thereof any
lien or security interest, even though inferior to the liens and the security interest hereof, and in any event never permit to be created or exist in respect of any Individual Property or any part thereof any other or additional lien or security
interest other than the liens or security interests hereof, except for the Permitted Encumbrances; provided, however, each Borrower shall have the right to contest such bills or costs in accordance with Section 8.2 hereof. 
  
 Section 8.13 Alterations. Each Borrower shall obtain the
Administrative Agent’s prior written consent, which consent shall not be unreasonably withheld or delayed, to any alterations to any Improvements on any individual Property other than alterations performed in connection with the restoration of
the Individual Property after the occurrence of a casualty in accordance with the terms and provisions of this Agreement; provided, however, the Administrative Agent may reasonably request that the Borrowers deliver additional collateral as
additional security for the Loans in connection with any such alterations. Notwithstanding the foregoing, the Borrowers shall have the right, without obtaining the prior written consent of the Administrative Agent, to make alterations which (a) are
provided for in the Approved Budget then in effect or (b) which cost less than $250,000. 
  
 Section 8.14 Handicapped Access. 
  
 (a) Each Borrower agrees that the Properties shall at all times comply in all material respects to the extent applicable with the
requirements of the Americans with Disabilities Act of 1990, the Fair Housing Amendments Act of 1988, all state and local laws and ordinances related to handicapped access and all rules, regulations, and orders issued pursuant thereto including,
without limitation, the Americans with Disabilities Act Accessibility Guidelines for Buildings and Facilities (collectively, “Access Laws”). 
  
 (b) Notwithstanding any provisions set forth herein or in any other document regarding the Administrative
Agent’s approval of alterations of the Properties, no Borrower shall alter any of the Properties in any manner which would materially increase any Borrower’s responsibilities for compliance with the applicable Access Laws without the prior
written approval of the Administrative Agent, which approval shall not be unreasonably withheld, delayed or conditioned. The foregoing shall apply to tenant improvements constructed by any Borrower or by any of its tenants. The Administrative Agent
may condition any such approval upon receipt of a certificate of Access Law compliance from an architect, engineer, or other person reasonably acceptable to the Administrative Agent. 
  
 (c) Each Borrower agrees to give prompt notice to the Administrative Agent of the receipt by such Borrower
of any written complaints related to violation of any Access Laws with respect to any Individual Property and of the commencement of any proceedings or investigations which relate to compliance with applicable Access Laws. 
  

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 ARTICLE IX 
  
 EVENTS OF DEFAULT 
  
 Each of the following shall constitute an Event of Default under the Loans: 
  
 Section 9.1 Payments. Any Borrower’s failure to pay any regularly scheduled installment of principal,
interest or other amount due under the Loan Documents within five (5) days of (and including) the day it is due, or any Borrower’s failure to pay the Loans at the Maturity Date, whether by acceleration or otherwise, or any Borrower’s
failure to pay the Extension Fee on or prior to the Maturity Date. 
  
 Section 9.2 Insurance. Any Borrower’s failure to maintain insurance as required under Section 3.1 of this Agreement. 
  
 Section 9.3 Single Purpose Entity. If any Borrower or Operator materially breaches any of its covenants with respect to maintaining its
status as a “single purpose entity” pursuant to Section 6.27. 
  
 Section 9.4 Taxes. If any of the taxes are not paid when the same are due and payable; provided, however, a Borrower shall have the right to contest the amount of taxes due if such Borrower
provides to the Administrative Agent with adequate funds and assurances as required pursuant to Section 8.2 hereof. 
  
 Section 9.5 Sale, Encumbrance, Etc. The sale, transfer, conveyance, pledge, mortgage or assignment of any part or all of any Individual
Property, or any interest therein, or of any interest in any Borrower, in violation of Section 8.1 of this Agreement. 
  
 Section 9.6 Representations and Warranties. Any representation or warranty made in any Loan Document proves to be untrue in any material
respect when made or deemed made. 
  
 Section 9.7 Other
Encumbrances. The acceleration of any debt or the exercise of any remedies under any document or instrument, other than the Loan Documents, evidencing or creating a monetary Lien on an Individual Property or any part thereof; provided,
however, this provision shall not be deemed to permit any such monetary Lien on any Individual Property other than the Mortgages and other Loan Documents securing the Loans. 
  
 Section 9.8 Involuntary Bankruptcy or Other Proceeding. Commencement of an involuntary case or other
proceeding against any Borrower, any Borrower Party, any other Person having an ownership interest in any Individual Property, or any Operator (but expressly excluding any Borrower or Borrower Party that has been released from its obligations and
liabilities under the Loan Documents in accordance with the terms of Section 2.7(3) of this Agreement) (each, a “Bankruptcy Party”) which seeks liquidation, reorganization or other relief with respect to it or its
debts or other liabilities under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeks the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any of its property, and such
involuntary case or other proceeding shall remain undismissed or unstayed for a period of ninety (90) days; or an order for 

  

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relief against a Bankruptcy Party shall be entered in any such case under the Federal Bankruptcy Code. 
  
 Section 9.9 Voluntary Petitions, Etc. Commencement by a
Bankruptcy Party of a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts or other liabilities under any bankruptcy, insolvency or other similar law or seeking the appointment of
a trustee, receiver, liquidator, custodian or other similar official for it or any of its property, or consent by a Bankruptcy Party to any such relief or to the appointment of or taking possession by any such official in an involuntary case or
other proceeding commenced against it, or the making by a Bankruptcy Party of a general assignment for the benefit of creditors, or the failure by a Bankruptcy Party, or the admission by a Bankruptcy Party in writing of its inability, to pay its
debts generally as they become due, or any action by a Bankruptcy Party to authorize or effect any of the foregoing; 
  
 Section 9.10 Budgets; Financial Statements. Any Borrower’s failure to deliver the budgets and financial statements required pursuant to
Article V or Article VII hereof within the time frame provided therein and the continuance of such failure for thirty (30) days after notice by the Administrative Agent to such Borrower. 
  
 Section 9.11 Interest Rate Cap Agreement. The Borrowers’
failure to replace any Interest Rate Cap Agreement by a date no later than ninety (90) days prior to its expiration or other termination with a Replacement Interest Rate Cap Agreement satisfying the requirements of Section 6.31. 

 
 Section 9.12 Default Under Other Agreements. The occurrence
of an event of default under any of the Ground Leases or Franchise Agreements and the expiration of any applicable notice or cure periods thereunder. 
  
 Section 9.13 Covenants. Any Borrower’s failure to perform or observe any of the agreements and covenants contained in this Agreement or
in any of the other Loan Documents and not specified above, including, without limitation, any such failure under any Mortgage, and the continuance of such failure for thirty (30) days after notice by the Administrative Agent to the Borrowers;
however, the Borrowers shall have an additional ninety (90) days to cure such failure if (a) such failure does not involve the failure to make payments on a monetary obligation; (b) such failure can reasonably be cured but cannot reasonably be cured
within thirty (30) days; and (c) the Borrowers are diligently undertaking to cure such default. 
  
 All notices and cure periods described herein shall not be applicable to any event which with the giving of notice, the passage of time or both would constitute an Event of Default, if such event has occurred as of
the date on which the Administrative Agent commences a nonjudicial foreclosure proceeding with respect to another Event or Events of Default. Such event shall constitute an independent Event of Default hereunder. 
  

 -110- 

 ARTICLE X 
  
 REMEDIES 
  
 Section 10.1 Remedies - Insolvency Events. Upon the occurrence of any Event of Default described in Section 9.8 or 9.9, the
obligations of the Administrative Agent (on behalf of Lenders) to advance amounts hereunder, expressly including, but not limited to the obligation to make any Earnout Advances, shall immediately terminate, and all amounts due under the Loan
Documents immediately shall become due and payable, all without written notice and without presentment, demand, protest, notice of protest or dishonor, notice of intent to accelerate the maturity thereof, notice of acceleration of the maturity
thereof, or any other notice of default of any kind, all of which are hereby expressly waived by the Borrowers; however, if the Bankruptcy Party under Section 9.8 or 9.9 is other than a Borrower, then all amounts due under the Loan Documents
shall become immediately due and payable at the Administrative Agent’s election. 
  
 Section 10.2 Remedies - Other Events. Except as set forth in Section 10.1 above, while any Event of Default exists, the Administrative Agent may (1) by written notice to the Borrowers, declare the
entire amount of the Loans to be immediately due and payable without presentment, demand, protest, notice of protest or dishonor, notice of intent to accelerate the maturity thereof, notice of acceleration of the maturity thereof, or other notice of
default of any kind, all of which are hereby expressly waived by the Borrowers, (2) terminate the obligation, if any, of the Lenders to advance amounts hereunder, expressly including, but not limited to the obligation to make any Earnout Advances,
and (3) exercise all rights and remedies therefor under the Loan Documents and at law or in equity. 
  
 Section 10.3 Lender’s Right to Perform the Obligations. If any Borrower shall fail, refuse or neglect to make any payment or perform
any act required by the Loan Documents, then upon the occurrence of any Event of Default (following any required notice from the Administrative Agent to the Borrowers and following the expiration of any applicable cure period), and without further
notice to or demand upon any Borrower and without waiving or releasing any other right, remedy or recourse the Administrative Agent or any Lender may have because of such Event of Default, the Administrative Agent may (but shall not be obligated to)
make such payment or perform such act for the account of and at the expense of the Borrowers, and shall have the right to enter upon the Properties for such purpose and to take all such action thereon and with respect to the Properties as it may
deem necessary or appropriate and to take all other action it may deem necessary or appropriate with respect to any Event of Default. If the Administrative Agent shall so elect to pay any sum due with reference to any Individual Property or with
reference to any Event of Default (following any required notice from the Administrative Agent to the Borrowers and following the expiration of any applicable cure period), the Administrative Agent may do so in reliance on any bill, statement or
assessment procured from the appropriate governmental authority or other issuer thereof without inquiring into the accuracy or validity thereof. Similarly, in making any such payments to protect the security intended to be created by the Loan
Documents, the Administrative Agent shall not be bound to inquire into the validity of any apparent or threatened adverse title, lien, encumbrance, claim or charge before making an advance for the purpose of preventing or removing the same.
Additionally, after the occurrence of an Event of Default (following any required notice from the Administrative Agent 

  

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to the Borrowers and following the expiration of any applicable cure period), if any Hazardous Materials affect or threaten to affect any Individual
Property, the Administrative Agent may (but shall not be obligated to) give such notices and take such actions as it deems necessary or advisable in order to abate the discharge of any Hazardous Materials or remove the Hazardous Materials as
required by Environmental Laws. Each Borrower shall indemnify, defend and hold the Administrative Agent and the Lenders harmless from and against any and all losses, liabilities, claims, damages, expenses, obligations, penalties, actions, judgments,
suits, costs or disbursements of any kind or nature whatsoever, including reasonable out-of-pocket attorneys’ fees, costs and expenses incurred or accruing by reason of any acts performed by the Administrative Agent or any Lender pursuant to
the provisions of this Section 10.3. All sums paid by the Administrative Agent pursuant to this Section 10.3. and all other sums expended by the Administrative Agent or any Lender to which it shall be entitled to be indemnified,
together with interest thereon at the highest Default Rate then applicable to any Type of Loan from the date of such payment or expenditure until paid, shall constitute additions to the Loans, shall be secured by the Loan Documents and shall be paid
by the Borrowers to the Administrative Agent upon demand. 
  
 Section 10.4 Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets. 
  
 (1) Each Borrower acknowledges that the Administrative Agent has made the Loans to the Borrowers upon the security of the Borrowers’
collective interest in the Properties and in reliance upon the aggregate of the Properties taken together being of greater value as collateral security than the sum of the Properties taken separately. Each Borrower agrees that the Mortgages are and
will be cross-collateralized and cross-defaulted with each other so that (a) an Event of Default under any of the Mortgages shall constitute an Event of Default under each of the other Mortgages which secure the Notes; (b) an Event of Default under
the Notes or this Agreement shall constitute an Event of Default under each Mortgage; and (c) each Mortgage shall constitute security for the Notes as if a single blanket lien were placed on all of the Properties as security for the Notes.

  
 (2) To the fullest extent permitted by law,
each Borrower, for itself and its successors and assigns, waives all rights to a marshalling of the assets of any Borrower, and others with interests in any Borrower, and of the Properties, or to a sale in inverse order of alienation in the event of
foreclosure of all or any of the Mortgages, and agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates of decedents, or any
other matters whatsoever to defeat, reduce or affect the right of the Administrative Agent (on behalf of the Lenders) under the Loan Documents to a sale of the Properties for the collection of the Indebtedness without any prior or different resort
for collection or of the right of the Administrative Agent to the payment of the Indebtedness (on behalf of the Lenders) out of the net proceeds of the Properties in preference to every other claimant whatsoever. In addition, each Borrower, for
itself and its successors and assigns, waives in the event of foreclosure of any or all of the Mortgages, any equitable right otherwise available to any Borrower which would require the separate sale of the Properties or require the Administrative
Agent to exhaust its remedies against any Individual Property or any combination of the Properties before proceeding against any other Individual Property or combination of Properties; and further in the event of 

  

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such foreclosure each Borrower does hereby expressly consents to and authorizes, at the option of the Administrative Agent, the foreclosure and sale either
separately or together of any combination of the Properties. 
  
 ARTICLE XI 
  
 MISCELLANEOUS 
  
 Section 11.1 Notices. Any notice required or permitted to be
given under this Agreement shall be in writing and either shall be mailed by certified mail, postage prepaid, return receipt requested, or sent by overnight air courier service, or personally delivered to a representative of the receiving party, or
sent by telecopy or e-mail (provided an identical notice is also sent simultaneously by mail, overnight courier, or personal delivery as otherwise provided in this Section 11.1) All such communications shall be mailed, sent or delivered,
addressed to the party for whom it is intended at its address set forth below. 
  

			
	 If to any Borrower:
	  	To such address included on such Borrower’s signature page hereto.
		
	 With a copy to:
	  	Allen Matkins Leck Gamble & Mallory LLP
	 	  	515 South Figueroa Street
	 	  	7th Floor
	 	  	Los Angeles, California 90071-3398
	 	  	Attention:        Michael F. Sfregola
	 	  	Telecopy:        (213) 620-8816
	 	  	E-mail:            msfregola@allenmatkins.com
		
	 If to Administrative Agent:
	  	 Massachusetts Mutual Life Insurance
 Company

	 	  	c/o David L. Babson & Company Inc.
	 	  	1500 Main Street, Suite 2100
	 	  	Mail Stop: TS21
	 	  	Springfield, MA 01115
	 	  	Attention:         Richard F. McKeever, Director
	 	  	                         Real Estate Finance
Group
	 	  	Telecopy:         (413)226-2432
	 	  	E-mail:              rmckeever@dlbabson.com

  

 -113- 

			
	 With copies to:
	  	Massachusetts Mutual Life Insurance
	 	  	Company
	 	  	c/o David L. Babson & Company Inc.
	 	  	1500 Main Street, Suite 2100
	 	  	Mail Stop: TS28
	 	  	Springfield, MA 01115
	 	  	Attention:    Dean A. Dulchinos,
	 	  	                    Assistant Vice President
	 	  	                    and Counsel
	 	  	Telecopy:    (413) 226-1079
	 	  	E-Mail:        ddulchinos@dlbabson.com
		
	 and
	  	Day, Berry & Howard LLP
	 	  	One Canterbury Green
	 	  	Stamford, CT 06901-2047
	 	  	Attention:     Michael P. Byrne, Esq.
	 	  	Telecopy:     (203) 977-7301
	 	  	E-mail:         mpbyrne@dbh.com
		
	 If to Lender:
	  	To Administrative Agent as set forth above
	 	  	and, if different, to each other addressee
	 	  	included on such Lender’s signature page
	 	  	hereto.

  
 Any communication so addressed and
mailed shall be deemed to be given on the earliest of (1) when actually delivered, (2) on the first Business Day after deposit with an overnight air courier service, or (3) on the third Business Day after deposit in the United States mail, postage
prepaid, in each case to the address of the intended addressee, and any communication so delivered in person shall be deemed to be given when receipted for by, or actually received by the Administrative Agent, a Lender or Borrower, as the case may
be. If given by telecopy or by e-mail, a notice shall be deemed given and received when the telecopy or e-mail is transmitted to the party’s telecopy number or e-mail address specified above, and confirmation of complete receipt is received by
the transmitting party during normal business hours or on the next Business Day if not confirmed during normal business hours, and an identical notice is also sent simultaneously by mail, overnight courier, or personal delivery as otherwise provided
in this Section 11.1. Any party may designate a change of address by written notice to each other party by giving at least ten (10) days prior written notice of such change of address. 
  
 Section 11.2 Amendments, Waivers, Etc. 
  
 (1) Subject to any consents required pursuant to this
Section 11.2, Section 13.3 and any other provisions of this Agreement and any other Loan Document which expressly require the consent, approval or authorization of the Controlling Lenders, this Agreement and any other Loan
Document may be modified or supplemented only by an instrument in writing signed by the Borrowers and the Administrative Agent; provided that, the Administrative Agent may (without any Lender’s consent) give or withhold its agreement to any
amendments of the Loan Documents or any waivers or consents in respect thereof or exercise or refrain from 

  

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exercising any other rights or remedies which the Administrative Agent may have under the Loan Documents or otherwise provided that such actions do not, in
the Administrative Agent’s judgment reasonably exercised, materially adversely affect the value of any collateral, taken as a whole, or represent a departure from the Administrative Agent’s standard of care described in Section 13.5
(and the assignment or granting of a participation by any Lender shall not limit or otherwise affect its discretion in respect of any of the foregoing), except that the Administrative Agent will not (provided that no Lender’s consent shall be
required for any of the following which are otherwise required under the Loan Documents): (a) without the consent of each Lender affected thereby, agree to reduce the principal amount of the Loans or reduce the interest rate thereon; (b) without the
consent of each Lender: (i) modify any of the provisions of this Section, the definition of “Controlling Lenders” or any other provision in the Loan Documents specifying the number or percentage of Lenders required to waive, amend or
modify any rights thereunder or make any determination or grant any consent thereunder or (ii) extend any stated Payment Date for principal of or interest on the Loans payable to such Lender; or (c) without the consent of the Controlling Lenders:
(i) release the Borrower or any other party from liability under the Loan Documents, (ii) release or subordinate in whole or in part any material portion of the collateral given as security for the Loans, (iii) modify the terms of any Event of
Default, (iv) take any actions or exercise any remedies with respect to such Event of Default (other than any actions which the Administrative Agent believes should be taken to protect the rights of the Administrative Agent (on behalf of the
Lenders) or of the Lenders under the Loan Documents on an emergency basis and within the Administrative Agent’s standard of care described in Section 13.5) or (v) consent to (A) the sale, transfer or encumbrance of any portion of any
Individual Property (or any interest therein) or any direct or indirect ownership interest therein, provided that the Administrative Agent shall not be required to obtain the prior consent of the Lenders to any Release or other sale or transfer
which is expressly permitted by the terms of this Agreement if the conditions to such Release or other sale or transfer set forth herein have been satisfied or (B) the incurrence by Borrower of any additional indebtedness secured by any Individual
Property, in each case to the extent (and subject to any standard of reasonability) such consent is required under the Loan Documents. 
  
 (2) Notwithstanding anything to the contrary contained in this Agreement, any modification or supplement of Article 13, or of any
of the rights or duties of the Administrative Agent hereunder, shall require the consent of the Administrative Agent. 
  
 Section 11.3 Limitation on Interest. It is the intention of the parties hereto to conform strictly to applicable usury laws. Accordingly,
all agreements between the Borrowers, the Administrative Agent and the Lenders with respect to the Loans are hereby expressly limited so that in no event, whether by reason of acceleration of maturity or otherwise, shall the amount paid or agreed to
be paid to the Administrative Agent or any Lender or charged by any Lender for the use, forbearance or detention of the money to be lent hereunder or otherwise, exceed the maximum amount allowed by law. If the Loans would be usurious under
applicable law (including the laws of the State and the laws of the United States of America), then, notwithstanding anything to the contrary in the Loan Documents: (1) the aggregate of all consideration which constitutes interest under applicable
law that is contracted for, taken, reserved, charged or received under the Loan Documents shall under no circumstances exceed the maximum amount of interest allowed by applicable law, and any excess shall be credited, without any Prepayment Fee, on
the Notes of the related Type by the holders thereof; and (2) if 

  

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maturity is accelerated by reason of an election by the Administrative Agent in accordance with the terms hereof, or in the event of any prepayment, then any
consideration which constitutes interest may never include more than the maximum amount allowed by applicable law. In such case, excess interest, if any, provided for in the Loan Documents or otherwise, to the extent permitted by applicable law,
shall be amortized, prorated, allocated and spread among Notes of the related Type from the date of advance until payment in full thereof so that the actual rate of interest is uniform through the term hereof. If such amortization, proration,
allocation and spreading is not permitted under applicable law, then such excess interest shall be cancelled automatically on the Notes of the related Type as of the date of such acceleration or prepayment and, if theretofore paid, shall be
credited, without any Prepayment Fee, on the Notes. The terms and provisions of this Section 11.3 shall control and supersede every other provision of the Loan Documents. The Loan Documents are contracts made under and shall be construed in
accordance with and governed by the laws of the Commonwealth of Massachusetts as set forth in Section 11.19 hereof, except that if at any time the laws of the United States of America permit the Lenders to contract for, take, reserve, charge
or receive a higher rate of interest than is allowed by the laws of the Commonwealth of Massachusetts (whether such federal laws directly so provide or refer to the law of any state), then such federal laws shall to such extent govern as to the rate
of interest which the Lenders may contract for, take, reserve, charge or receive under the Loan Documents. 
  
 Section 11.4 Invalid Provisions. If any provision of any Loan Document is held to be illegal, invalid or unenforceable, such provision shall
be fully severable; the Loan Documents shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part thereof; the remaining provisions thereof shall remain in full effect and shall not be affected
by the illegal, invalid, or unenforceable provision or by its severance therefrom; and in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as a part of such Loan Document a provision as similar in terms to
such illegal, invalid or unenforceable provision as may be possible to be legal, valid and enforceable. 
  
 Section 11.5 Reimbursement of Expenses. Each Borrower shall pay or reimburse on demand of the applicable party for: (a) all reasonable
out-of-pocket fees, costs and expenses incurred by the Administrative Agent in connection with the making of the Loans, including out-of-pocket fees, costs and expenses of the Administrative Agent’s attorneys, environmental, engineering and
other consultants, title insurance premiums, and fees, charges or taxes for the negotiation, recording or filing of Loan Documents, subject to the terms of and limitations contained in that certain commitment letter dated as of June 17, 2003 and
entered into by and among the Administrative Agent and the Borrowers, (b) to the extent set forth in another section contained herein or in any other Loan Documents, all reasonable out-of-pocket fees, costs and expenses of the Administrative Agent
in connection with the administration of the Loans, including audit costs, inspection fees, settlement of Condemnation and casualty awards, and premiums for title insurance and endorsements thereto in each case in accordance with the terms and
provisions contained in this Agreement and (c) all out-of-pocket fees, costs and expenses expended, advanced or incurred by the Administrative Agent and the Lenders to collect the Notes, or to enforce the rights of the Administrative Agent and the
Lenders under this Agreement or any other Loan Document, or to defend or assert the rights and claims of the Administrative Agent and the Lenders under the Loan Documents or with respect to the Properties (by litigation or other proceedings), which
amounts will include all court costs, attorneys’ fees, costs and 

  

 -116- 

 
expenses, fees, costs and expenses of auditors and accountants, and investigation fees, costs and expenses as may be incurred by the Administrative Agent and
the Lenders in connection with any such matters (whether or not litigation is instituted), together with interest at the highest Default Rate then applicable to any Type of Loan on each such amount from the date of disbursement until the date of
reimbursement to the Administrative Agent and the Lenders, all of which shall constitute part of the Loans and shall be secured by the Loan Documents. This provision is separate and several and shall survive merger and judgment. 
  
 Section 11.6 Approvals; Third Parties; Conditions. All approval
rights retained or exercised by the Administrative Agent and the Lenders with respect to Leases, contracts, plans, studies and other matters are solely to facilitate the Lenders’ credit underwriting, and shall not be deemed or construed as a
determination that the Lenders have passed on the adequacy thereof for any other purpose and may not be relied upon by any Borrower or any other Person. This Agreement is for the sole and exclusive use of the Administrative Agent, the Lenders and
the Borrowers and may not be enforced, nor relied upon, by any Person other than the Administrative Agent, the Lenders and the Borrowers. All conditions of the obligations of the Administrative Agent and the Lenders hereunder, including the
obligation to make advances, are imposed solely and exclusively for the benefit of the Administrative Agent and the Lenders, their successors and assigns, and no other Person shall have standing to require satisfaction of such conditions or be
entitled to assume that the Lenders will refuse to make advances in the absence of strict compliance with any or all of such conditions, and no other Person shall, under any circumstances, be deemed to be a beneficiary of such conditions, any and
all of which may be freely waived in whole or in part by the Administrative Agent and the Lenders at any time in their sole discretion. 
  
 Section 11.7 Lenders and Administrative Agent Not in Control; No Partnership. None of the covenants or other provisions contained in this
Agreement shall, or shall be deemed to, give the Administrative Agent or any Lender the right or power to exercise Control over the affairs or management of any Borrower, the power of the Administrative Agent and the Lenders being limited to the
rights to exercise the remedies referred to in the Loan Documents. The relationship between the Borrowers and the Lenders is, and at all times shall remain, solely that of debtor and creditor. No covenant or provision of the Loan Documents is
intended, nor shall it be deemed or construed, to create a partnership, joint venture, agency or common interest in profits or income between the Administrative Agent, the Lenders and any Borrower or to create an equity in the Properties in the
Administrative Agent or any Lender. The Administrative Agent and the Lenders neither undertake nor assume any responsibility or duty to any Borrower or to any other person with respect to the Properties or the Loans, except as expressly provided in
the Loan Documents; and notwithstanding any other provision of the Loan Documents: (1) neither the Administrative Agent nor any Lender is, nor shall be construed as, a partner, joint venturer, alter ego, manager, Controlling person or other business
associate or participant of any kind of any Borrower or its stockholders, members, or partners and neither the Administrative Agent nor any Lender intends to ever assume such status; (2) no Lender or the Administrative Agent shall in any event be
liable for any Debts, expenses or losses incurred or sustained by any Borrower; and (3) no Lender or the Administrative Agent shall be deemed responsible for or a participant in any acts, omissions or decisions of any Borrower or its stockholders,
members, or partners. The Administrative Agent, the Lenders and the Borrowers disclaim any intention to create any partnership, joint venture, agency or common interest in profits or income between the 

  

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Administrative Agent, the Lenders and Borrowers, or to create an equity in the Properties in the Administrative Agent or any Lender, or any sharing of
liabilities, losses, costs or expenses. 
  
 Section 11.8
Time of the Essence. Time is of the essence with respect to this Agreement. 
  
 Section 11.9 Successors and Assigns; Secondary Market Transactions. 
  
 (1) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of Administrative Agent and its
permitted successors and assigns as administrative agent hereunder, the Lenders and each successor and assign thereof which is the registered owner of any Note, and the Borrowers, provided, however, that no Borrower shall assign any of its rights or
obligations under this Agreement (except as otherwise expressly permitted by this Agreement) without the prior written consent of Administrative Agent, on behalf of the Lenders, and provided further that, notwithstanding anything to the contrary
contained herein or in any other Loan Document, any transfer or assignment by any Lender of all or a portion of its interest, rights or obligations under this Agreement, any Note or any other Loan Document shall be made in accordance with the
applicable provisions of this Agreement and shall not be effective until the identity of the transferee or assignee is registered in the Register as a registered owner of the related Note. A certificate that such registration has been completed
shall be promptly provided by Administrative Agent to the Borrowers, the relevant Lender or any transferee or successor thereof and such certificate shall constitute conclusive evidence of such registration and the effectiveness of such transfer or
assignment. 
  
 (2) Secondary Market
Transactions. Each Borrower acknowledges that (a) each Lender may without the consent from such Borrower or prior notice to such Borrower (i) sell all or a portion of its Notes together with its rights as a Lender with respect to such Type
of Notes under this Agreement and the other Loan Documents as set forth herein to one or more Institutional Investors, (ii) participate and/or syndicate the Loans, subject to Section 11.22 hereof, to one or more Institutional Investors, or
(iii) otherwise sell, transfer or assign the Loans or interests therein to Institutional Investors in one or more transactions (the transactions referred to in clause (a) are hereinafter also each referred to as a “Secondary Market
Transaction”), (b) after such time as the Earnout Advances shall have been fully funded or shall have expired, the Administrative Agent may without the consent of such Borrower or notice to such Borrower sell or transfer all or any
portion of its rights and obligations as administrative agent hereunder or under any of the other Loan Documents as permitted in Section 13.8 hereof, and/or (c) the Administrative Agent may without the consent of such Borrower or notice to
such Borrower sell or transfer all or any portion of its rights and obligations as administrative agent hereunder if (i) the Administrative Agent is required to resign or is removed by the Lenders in connection with any syndication, participation or
other agreement governing co-investment in the Loan and/or (ii) the Administrative Agent is exiting the business of serving as administrative agent on commercial loans similar to the Loans. Each Borrower shall reasonably cooperate with the
Administrative Agent and each Lender in effecting any such Secondary Market Transaction and shall reasonably cooperate and use all reasonable efforts to satisfy the market standards to which the Administrative Agent and each Lender customarily
adheres or which may be reasonably required by any participant, investor, purchaser or any Rating Agency involved in any Secondary Market Transaction (including, without limitation, delivery of opinions of counsel in form and 

  

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substance similar to the opinions of counsel delivered to the Administrative Agent on the date hereof and delivery of estoppel certificates of each Borrower,
each Borrower Party and each Manager). Each Borrower shall provide such information and documents relating to the Borrowers and the Properties as the Administrative Agent and each Lender may reasonably request in connection with such Secondary
Market Transaction. In addition, each Borrower shall make available to the Administrative Agent and the Lenders all information concerning the Properties, its business and operations that the Administrative Agent and the Lenders may reasonably
request. The Administrative Agent and the Lenders shall be permitted to share all information with the participants, investors, purchasers, investment banking firms, Rating Agencies, accounting firms, law firms and third-party advisory firms
involved with the Loans and Loan Documents or the applicable Secondary Market Transaction. The Administrative Agent and the Lenders and all of the aforesaid participants, investors, purchasers, advisors, Rating Agencies and professional firms shall
be entitled to rely on the information supplied by or on behalf of the Borrowers. Each Borrower also agrees to execute any amendment of or supplement to this Agreement and the other Loan Documents as the Administrative Agent and the Lenders may
reasonably request in connection with any Secondary Market Transaction, provided that such amendment or supplement does not (i) change the interest rate, the stated maturity or the amortization of principal set forth in the Notes, (ii) modify or
amend any other economic term of the Loans or (iii) materially increase any Borrower’s obligations or materially diminish any Borrower’s rights under the Loan Documents. 
  
 (3) The liabilities and obligations of both the Borrowers and Lenders under Section 11.9 shall
survive the termination of this Agreement and the satisfaction and discharge of the Indebtedness. 
  
 (4) The Administrative Agent (on behalf of the Lenders) shall have the right subject to Section 11.22 with respect to a Secondary
Market Transaction from time to time to sever the Notes and the other Loan Documents into two or more separate notes, mortgages and other security documents (the “Severed Loan Documents”) in such denominations as the
Administrative Agent shall determine in its sole discretion in connection with a Secondary Market Transaction or for purposes of evidencing and enforcing its rights and remedies provided hereunder. Each Borrower shall execute and deliver to the
Administrative Agent from time to time, promptly after the request of the Administrative Agent, a severance agreement and such other documents as the Administrative Agent shall reasonably request in order to effect the severance described in the
preceding sentence, all in form and substance reasonably satisfactory to the Administrative Agent. Each Borrower hereby absolutely and irrevocably appoints the Administrative Agent (on behalf of Lenders) as its true and lawful attorney, coupled with
an interest, in its name and stead to make and execute all documents necessary or desirable to effect the aforesaid severance, each Borrower ratifying all that its said attorney shall do by virtue thereof. The provisions of this paragraph are
subject to Sections 2.1(3)(b), (c) and (d). 
  
 (5) All reasonable out-of-pocket third party expenses incurred in connection with Sections 11.9(2) and (4) and Section 11.10 hereof shall be paid by the Administrative Agent (on behalf of the Lenders), except as may be
otherwise agreed by the Borrowers. Each Borrower shall provide invoices or other evidence of such expenses to the Administrative Agent (on behalf of the Lenders) for its review and approval prior to incurring any such charges. Notwithstanding

  

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anything to the contrary contained herein, this Section 11.9(5) shall not limit any Borrower’s liability in connection with the indemnifications
provided by any Borrower in such sections. 
  
 Section 11.10
Renewal, Extension or Rearrangement. All provisions of the Loan Documents shall apply with equal effect to each and all promissory notes and amendments thereof hereinafter executed which in whole or in part represent a renewal,
extension, Conversion, increase or rearrangement of the Loans. For portfolio management purposes, the Administrative Agent may elect to divide the Loans into two or more separate loans evidenced by separate promissory notes so long as the payment
and other obligations of the Borrowers are not effectively increased or otherwise modified or the rights and benefits given to the Borrowers under the Loan Documents are not affected. Each Borrower agrees to reasonably cooperate with the
Administrative Agent and to execute such documents as the Administrative Agent reasonably may request to effect such division of the Loans. The provisions of this paragraph are subject to Sections 2.1(3)(b), (c) and (d). 
  
 Section 11.11 Waivers. No course of dealing on the part of the
Administrative Agent or any Lender, their officers, employees, consultants or agents, nor any failure or delay by the Administrative Agent or any Lender with respect to exercising any right, power or privilege of the Administrative Agent or any
Lender under any of the Loan Documents, shall operate as a waiver thereof. 
  
 Section 11.12 Cumulative Rights. Rights and remedies of the Administrative Agent and the Lenders under the Loan Documents shall be cumulative, and the exercise or partial exercise of any such right or
remedy shall not preclude the exercise of any other right or remedy. 
  
 Section 11.13 Exhibits and Schedules. The exhibits and schedules attached to this Agreement are incorporated herein and shall be considered a part of this Agreement for the purposes stated herein. 
  
 Section 11.14 Titles of Articles, Sections and Subsections. All
titles or headings to articles, sections, subsections or other divisions of this Agreement and the other Loan Documents or the exhibits hereto and thereto are only for the convenience of the parties and shall not be construed to have any effect or
meaning with respect to the other content of such articles, sections, subsections or other divisions, such other content being controlling as to the agreement between the parties hereto. 
  
 Section 11.15 Promotional Material. Each Borrower authorizes the Administrative Agent and each Lender to issue
press releases, advertisements describing in general terms or in detail the Administrative Agent’s or Lender’s participation in this transaction. All references to the Administrative Agent, Lender or Borrower in any press release or
advertisement issued by any Borrower, the Administrative Agent, Lender, and/or any of their respective principals, affiliates or agents must be approved in advance of issuance by the other party; provided, however, that such approval shall not be
required with respect to the Administrative Agent’s or any Lender’s marketing or promotional activities in connection with a syndication or Secondary Market Transaction. 
  

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 Section 11.16 Survival. All of the representations, warranties, covenants, and indemnities
of each Borrower hereunder (including environmental matters under Article 4, the obligations under Section 2.7, and under the indemnification provisions of the other Loan Documents shall survive (a) the repayment in full of the Loans
and the release of the Liens evidencing or securing the Loans, (b) the transfer (by sale, foreclosure, conveyance in lieu of foreclosure or otherwise) of any or all right, title and interest in and to the Properties to any party, whether or not an
Affiliate of Borrower and (c) in the case of any Lender that may assign any interest in its Commitment or Loans hereunder in accordance with the terms of this Agreement, the making of such assignment, notwithstanding that such assigning Lender may
cease to be a “Lender” hereunder. 
  
 Section 11.17
WAIVER OF JURY TRIAL. EACH BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH
RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE 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 BORROWER, THE
ADMINISTRATIVE AGENT AND EACH 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 BORROWER, THE ADMINISTRATIVE AGENT OR ANY LENDER IS HEREBY AUTHORIZED
TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY SUCH OTHER PARTY. 
  
 Section 11.18 Waiver of Punitive or Consequential Damages. None of the Administrative Agent, the Lenders or any Borrower shall be
responsible or liable to the other or to any other Person for any punitive, exemplary or consequential damages which may be alleged as a result of the Loans or the transaction contemplated hereby, including any breach or other default by any party
hereto. 
  
 Section 11.19 Governing Law. (1) THIS
AGREEMENT WAS NEGOTIATED IN THE COMMONWEALTH OF MASSACHUSETTS, AND MADE BY THE ADMINISTRATIVE AGENT AND LENDERS AND ACCEPTED BY THE BORROWERS IN THE COMMONWEALTH OF MASSACHUSETTS, AND THE PROCEEDS OF THE NOTES DELIVERED PURSUANT HERETO WERE
DISBURSED FROM THE COMMONWEALTH OF MASSACHUSETTS, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS APPLICABLE TO CONTRACTS MADE AND
PERFORMED IN SUCH COMMONWEALTH (WITHOUT REGARD TO PRINCIPLES OF CONFLICT LAWS) AND ANY APPLICABLE LAW OF THE 

  

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UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS
CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE APPLICABLE INDIVIDUAL PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED
BY THE LAW OF SUCH STATE, THE LAW OF THE COMMONWEALTH OF MASSACHUSETTS SHALL OTHERWISE GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT
PERMITTED BY LAW, EACH BORROWER, THE ADMINISTRATIVE AGENT AND LENDERS HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT AND THE NOTES. 
  
 (2) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST THE
ADMINISTRATIVE AGENT, ANY LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT THE ADMINISTRATIVE AGENT’S OPTION (OR SHALL IF SO DIRECTED BY THE MAJORITY LENDERS) BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF
BOSTON, COUNTY OF SUFFOLK, MASSACHUSETTS, AND EACH BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY IRREVOCABLY SUBMITS TO THE
JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT CT CORPORATION SYSTEM, 101 FEDERAL STREET, SUITE 300, BOSTON, MA 02110 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 BOSTON, MASSACHUSETTS, 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 COMMONWEALTH OF MASSACHUSETTS. EACH BORROWER (A) SHALL GIVE
PROMPT NOTICE TO ADMINISTRATIVE AGENT OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (B) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN BOSTON, MASSACHUSETTS (WHICH SUBSTITUTE AGENT AND
OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (C) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN BOSTON, MASSACHUSETTS OR IS DISSOLVED WITHOUT LEAVING A
SUCCESSOR. 
  

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 Section 11.20 Entire Agreement. This Agreement and the other Loan Documents embody the
entire agreement and understanding between the Administrative Agent, the Lenders and the Borrowers and supersede all prior agreements and understandings between such parties relating to the subject matter hereof and thereof. Accordingly, the Loan
Documents may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties. The parties hereto acknowledge that the Lenders and the Administrative
Agent may enter into a separate written agreement which will relate to the relationship among and between the Lenders and the Administrative Agent with respect to the Loans. 
  
 Section 11.21 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall
constitute an original, but all of which shall constitute one document. 
  
 Section 11.22 Assignments and Participations. 
  
 (1) Assignments by Borrower. No Borrower may assign any of its rights or obligations hereunder or under the Notes without the prior consent of the Administrative Agent except as otherwise expressly
permitted pursuant to this Loan Agreement. 
  
 (2) Assignments by the Lenders. Each Lender may assign any of its Loans, its rights and obligations under this Agreement, its Notes and other Loan Documents as provided in Section 2.1 (3)(d) and in Section
11.9(1). 
  
 (3)
Participations. A Lender may sell or agree to sell to one or more other Persons (each a “Participant”) a participation in all or any part of any Loans held by it, or in its Commitment, provided that such Participant
shall not have any rights or obligations under this Agreement or any Note or any other Loan Document (the Participant’s rights against such Lender in respect of such participation to be those set forth in the agreements executed by such Lender
in favor of the Participant). All amounts payable by the Borrowers to any Lender in respect of Loans held by it shall be determined as if such Lender had not sold or agreed to sell any participations in such Loans, and as if such Lender were funding
each of such Loans in the same way that it is funding the portion of such Loans in which no participations have been sold. 
  
 (4) Certain Pledges. In addition to the assignments and participations permitted under the foregoing provisions of this
Section 11.22 (but without being subject thereto), any Lender may (without notice to any Borrower, the Administrative Agent or any other Lender and without payment of any fee) assign and pledge all or any portion of its Loans and its Note to
any Federal Reserve Bank as collateral security pursuant to Regulation A and any operating circular issued by such Federal Reserve Bank, and such Loans and Note shall be fully transferable as provided therein. No such assignment shall release the
assigning Lender from its obligations hereunder. 
  
 (5) Provision of Information to Assignees and Participants. A Lender may furnish any information concerning any Borrower or any of its Affiliates in the possession of such Lender from time to time to assignees and participants
(including prospective assignees and participants). 
  

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 Section 11.23 Brokers and Financial Advisors. Each Borrower hereby represents that it has
dealt with no financial advisors, brokers, underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement. Each Borrower hereby agrees to indemnify, defend and hold each Lender harmless from and
against any and all claims, liabilities, costs and expenses of any kind (including each Lender’s attorneys’ fees, costs and expenses) in any way relating to or arising from a claim by any Person that such Person acted on behalf of any
Person other than any Lender, Administrative Agent or their affiliates in connection with the transactions contemplated herein. The provisions of this Section 11.23 shall survive the expiration and termination of this Agreement and the
payment of the Indebtedness. 
  
 Section 11.24
Servicer. At the option of the Administrative Agent, the Loans may be serviced by a Servicer/Trustee (“Servicer”) selected by the Administrative Agent. Administrative Agent may delegate all or any portion of its
responsibilities under this Agreement and the other Loan Documents to the Servicer pursuant to a servicing agreement (“Servicing Agreement”) between the Administrative Agent and Servicer. 
  
 ARTICLE XII 
  
 LIMITATIONS ON LIABILITY 
  
 Section 12.1 Limitation on Liability. 
  
 (1) Notwithstanding anything to the contrary contained in the Loan Documents, except as provided below, the Borrowers shall not be
personally liable for amounts due under the Loan Documents or other obligations under the Loan Documents. Each Borrower, jointly and severally, shall be personally liable to the Administrative Agent and the Lenders, and the Administrative Agent and
the Lenders shall have full recourse to the Borrowers, to the extent provided below in connection with the following: (1) any Borrower’s commission of a criminal act – recourse liability for any Losses incurred by the Administrative Agent
or the Lenders in connection with such act, (2) insurance proceeds and/or Awards received by any Borrower but not paid over or applied in accordance with the Loan Documents – recourse liability for the amount of insurance and/or condemnation
proceeds not paid over to the Administrative Agent or applied in accordance with the Loan Documents; (3) the fraud or intentional material misrepresentation by any Borrower or any Borrower Party made in or in connection with the Loan Documents or
the Loans – full recourse liability for the entire Indebtedness under the Loans; (4) misappropriation of security deposits, advances or prepaid rents, cancellation or termination payments and other similar sums received by any Borrower from any
tenants or other occupants of any Individual Property – recourse liability for the amount of security deposits, advances or prepaid rents, and cancellation or termination payments not applied or paid over to the Administrative Agent in
accordance with the terms of the Loan Documents or applied to Operating Expenses; (5) rents, revenues or other income of any Individual Property which are not applied to payments due under the Loan Documents or to real and personal property taxes,
capital improvements to such Individual Property or operating expenses of such Individual Property (including, without limitation, any deposits, reserves or escrows required by a Loan Document), thereby resulting in or contributing materially to a
default under the Loan Documents – recourse liability to the extent of the rents, revenues and other income which are misapplied; provided, however, that no Borrower shall have any personal liability for Losses 

  

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based on distributions of Operating Revenues, Net Operating Income or Net Cash Flow of an Individual Property to a Borrower, or any general partner,
principal, stockholder, member or manager of a Borrower, made in good faith (after determining the sufficiency of Operating Revenues of an Individual Property to cover the payments due under the Loan Documents and operating expenses of such
Individual Property) more than one hundred eighty (180) days prior to an Event of Default; (6) any Borrower’s indemnification of the Administrative Agent and/or any Lender with respect to environmental matters as provided in the Loan Documents
– recourse liability for any Losses incurred by the Administrative Agent or the Lenders in connection with such matters; (7) any Borrower’s failure to maintain or pay premiums when due for any insurance as required by this Agreement or to
pay any taxes or assessments affecting any Individual Property, except to the extent such Borrower has made all payments to the Tax and Insurance Reserve as and when required pursuant to Section 3.4 hereof and with respect to such insurance
the failure to maintain such insurance is due solely to the non-payment thereof – recourse liability for any Losses incurred by the Administrative Agent or the Lenders in connection with such failure to maintain insurance or pay premiums; (8)
damage or destruction to any Individual Property caused by the willful misconduct or omissions of any Borrower, its agents or employees – recourse liability for any Losses incurred by the Administrative Agent or the Lenders in connection with
such acts or omissions; (9) any Borrower’s obligations with respect to environmental matters under Article 4 – recourse liability for any Losses incurred by the Administrative Agent or the Lenders in connection with such matters;
(10) any Borrower’s failure to pay for any Losses incurred by the Administrative Agent or any Lender arising out of any claim or allegation made by any Borrower, its successors or assigns, or any creditor of any Borrower, that this Agreement or
the transactions contemplated by the Loan Documents establish a joint venture, partnership or other similar arrangement between any Borrower, the Administrative Agent and any Lender – recourse liability for any Losses incurred by the
Administrative Agent or the Lenders in connection with such matters; (11) the failure to return, or reimburse the Administrative Agent for, any FF&E taken from the Property by or on behalf of any Borrower and not replaced with FF&E of the
same utility and of the same or greater value – recourse liability for the replacement value of the FF&E which is taken and not replaced; (12) any act of arson or malicious destruction or waste by any Borrower or any Borrower Party –
recourse liability for any Losses incurred by the Administrative Agent or the Lenders in connection with such act; or (13) any brokerage commission or finder’s fees claimed in connection with the transactions contemplated by the Loan Documents
which arise out of any Borrower’s actions or omissions – recourse liability for any Losses incurred by the Administrative Agent or the Lenders in connection with such actions or omissions (each of the foregoing exceptions, collectively,
the “Non-Recourse Exceptions”). 
  
 (2) Notwithstanding anything to the contrary in this Agreement, the Notes or any of the Loan Documents, (i) the Administrative Agent and Lenders shall not be deemed to have waived any right which Lenders or the
Administrative Agent may have under Section 506(a), 506(b), llll(b) or any other provisions of the U.S. Bankruptcy Code to file a claim for the full amount of the Indebtedness secured by the Mortgages or to require that all collateral
shall continue to secure all of the Indebtedness owing to Lenders in accordance with the Loan Documents, and (ii) the Indebtedness and all amounts payable under the Loan Documents shall be fully recourse to each Borrower in the event that: (A) there
is an Event of Default under Sections 9.9 hereof; (B) an involuntary case or other proceeding is commenced against any Bankruptcy Party by an Affiliate of any Borrower, Borrower Party, or Operator which seeks 

  

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liquidation, reorganization or other relief with respect to it or its debts or other liabilities under any bankruptcy, insolvency or other similar law now or
hereafter in effect or seeks the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any of its property; (C) an involuntary case or other proceeding is commenced against any Bankruptcy Party by a third party
creditor with the cooperation of or in concert with an any Borrower, Borrower Party, or Operator (or any Affiliate of any of the foregoing Persons) which seeks liquidation, reorganization or other relief with respect to it or its debts or other
liabilities under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeks the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any of its property; (D) any Borrower fails to
obtain the Administrative Agent’s prior written consent to any subordinate financing, any mezzanine financing or other voluntary lien encumbering any Individual Property or the equity interests in any Borrower Party; or (E) any Borrower fails
to obtain the Administrative Agent’s prior written consent to any assignment, transfer, or conveyance of any Individual Property or any material interest therein as required by the Loan Documents. 
  
 (3) Whenever the obligations of any of the Borrowers are
satisfied in part by any payment or foreclosure or other exercise of remedies, then at the Administrative Agent’s election the obligations which constitute non-recourse liabilities shall be deemed satisfied first before any obligations which
constitute or fall within the Non-Recourse Exceptions. 
  
 Section
12.2 Limitation on Liability of the Administrative Agent’s and the Lenders’ Officers, Employees, etc. Any obligation or liability whatsoever of the Administrative Agent or any Lender which may arise at any time under this
Agreement or any other Loan Document shall be satisfied, if at all, out of the Administrative Agent’s or such Lender’s respective assets only. No such obligation or liability shall be personally binding upon, nor shall resort for the
enforcement thereof be had to, the property of any of the Administrative Agent’s or any Lender’s shareholders, directors, officers, employees or agents, regardless of whether such obligation or liability is in the nature of contract, tort
or otherwise. 
  
 ARTICLE XIII 
  
 THE ADMINISTRATIVE AGENT 
  
 Section 13.1 Appointment, Powers and Immunities. Each
Lender hereby appoints and authorizes the Administrative Agent to act as its agent hereunder and under the other Loan Documents with such powers as are specifically delegated to the Administrative Agent by the terms of this Agreement and of the
other Loan Documents, together with such other powers as are reasonably incidental thereto. The Administrative Agent (which term as used in this sentence and in Section 13.5 and the first sentence of Section 13.6 shall include
reference to its affiliates and its own and its affiliates’ officers, directors, employees and agents): 
  
 (a) shall have no duties or responsibilities except those expressly set forth in this Agreement, in the other Loan Documents and in any
written agreement entered into by the Lenders and the Administrative Agent with respect to the 

  

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Loan, and shall not by reason of this Agreement, any other Loan Document or any such written agreement be a trustee or fiduciary for any Lender; 

 
 (b) shall not be responsible to the Lenders for any
recitals, statements, representations or warranties contained in this Agreement or in any other Loan Document, or in any certificate or other document referred to or provided for in, or received by any of them under, this Agreement or any other Loan
Document, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement, any Note or any other Loan Document or any other document referred to or provided for herein or therein or for any failure by any
Borrower or any other Person to perform any of its obligations hereunder or thereunder; and 
  
 (c) shall not be responsible for any action taken or omitted to be taken by it hereunder or under any other Loan Document or under any
other document or instrument referred to or provided for herein or therein or in connection herewith or therewith, except to the extent any such action taken or omitted violates the Administrative Agent’s standard of care set forth in the first
sentence of Section 13.5. 
  
 The Administrative Agent may employ
agents and attomeys-in-fact, and may delegate all or any part of its obligations hereunder, to third parties and shall not be responsible for the negligence or misconduct of any such agents, attorneys-in-fact or third parties selected by it in good
faith. Without limiting the foregoing, if the Administrative Agent is not qualified in a particular jurisdiction to hold the Mortgaged Property (as defined in the related Mortgage) or to exercise remedies with respect thereto on behalf of the
Lenders, the Administrative Agent may subcontract with a qualified third party to do so, with the Administrative Agent remaining responsible for directing the activities of any such subcontractor in accordance with the provisions of this Agreement.
The Administrative Agent may deem and treat the payee of a Note as the holder thereof for all purposes hereof unless and until a notice of the assignment or transfer thereof shall have been filed with the Administrative Agent and such assignment or
transfer of the Note (or such portion thereof as has been so assigned or transferred) has been registered on the Register in accordance with Article 2 hereof. Without limiting the generality of the foregoing provisions of this Section
13.1, the Administrative Agent shall also be entitled to retain a Controlled servicer and/or other sub-servicers to perform its loan servicing and administration duties to be performed under this Agreement on behalf of the Lenders. Any
sub-servicer retained by the Administrative Agent shall also be entitled to employ one or more sub-servicers (which may also include a Controlled servicer) in connection with performance of their loan servicing and administration duties. Such
retention shall not relieve the Administrative Agent of any of its obligations as the administrative agent under this Agreement, and the Administrative Agent shall be and remain solely responsible for such obligations and for the fees and expenses
of such sub-servicers payable under sub-servicing agreements. 
  
 Section 13.2 Fees. On each Payment Date, Borrower shall pay in arrears to the Administrative Agent an administration and servicing fee equal to one-twelfth (1/12th) of ten (10) basis points multiplied by the average daily
outstanding principal balance of the Loans during the preceding Loan Month (the “Administrative Agent Servicing Fee”). 
  

 -127- 

 Section 13.3 Reliance by Administrative Agent. The Administrative Agent shall be entitled
to rely upon any certification, notice or other communication (including, without limitation, any thereof by telephone, telecopy, e-mail, telegram or cable) reasonably believed by it to be genuine and correct and to have been signed or sent by or on
behalf of the proper Person or Persons, and upon advice and statements of legal counsel, independent accountants and other experts selected by the Administrative Agent. As to any matters not expressly provided for by this Agreement or any other Loan
Document, the Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder or thereunder in accordance with instructions given by the Controlling Lenders, and such instructions of the Controlling
Lenders and any action taken or failure to act pursuant thereto shall be binding on all of the Lenders. 
  
 Section 13.4 Defaults. The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of an Event of Default
unless the Administrative Agent has received notice from a Lender or a Borrower specifying such Event of Default and stating that such notice is a “Notice of Default”. In the event that the Administrative Agent receives such a notice of
the occurrence of an Event of Default, the Administrative Agent shall give prompt notice thereof to the Lenders. The Administrative Agent shall (subject to Section 13.7) take such action with respect to such Event of Default and other matters
relating to the Loans after an Event of Default as may be taken by the Administrative Agent hereunder and, if applicable, under any written contract entered into by the Lenders and the Administrative Agent with respect to the Loans. Not more often
than once every 6 consecutive months during (a) the continuance of an Event of Default which has resulted in the acceleration of the Loans, and (b) any period thereafter during which the Administrative Agent is exercising remedies or has taken title
to one or more of the Individual Properties, Senior Lenders holding at least 51% of the aggregate outstanding principal amount of the Senior Loans may send written notice to the Administrative Agent requesting that the Administrative Agent hire a
reputable MAI appraiser to determine the Appraised Value of the Properties. Promptly after receipt of such appraisals, the Administrative Agent shall send copies thereof to the Lenders together with written notice regarding whether or not an
Appraisal Event has occurred based on the results of such appraisals. If the Appraised Value of the Properties is less than or equal to the sum of (i) all amounts then due and owing the Administrative Agent under the Loan Documents and (ii) the
aggregate outstanding principal amount of the Senior Loans and all other amounts then due and owing the Senior Lenders under the Loan Documents, an “Appraisal Event” shall have occurred. 
  
 Section 13.5 Rights as a Lender. If the Administrative Agent is
also a Lender hereunder it shall have the same rights and powers hereunder as any other Lender and may exercise the same as though it were not acting as the Administrative Agent, and the term “Lender” or “Lenders” shall, unless
the context otherwise indicates, include the Administrative Agent in its individual capacity. The Administrative Agent and its affiliates may (without having to account therefor to any Lender) lend money to, make investments in and generally engage
in any kind of lending, trust or other business with any Borrower (and any of its Affiliates) as if it were not acting as the Administrative Agent, and the Administrative Agent and its affiliates may accept fees and other consideration from any
Borrower for services in connection with this Agreement or otherwise without having to account for the same to the Lenders. 
  
 Section 13.6 Standard of Care; Indemnification. In performing its duties under the Loan Documents, the Administrative Agent will exercise
the same degree of care as the 

  

 -128- 

 
Administrative Agent normally exercises in connection with real estate loans in which no syndication or participations are involved, but the Administrative
Agent shall have no further responsibility to any Lender except as expressly provided herein and except for its own gross negligence or willful misconduct which resulted in actual loss to such Lender, and, except to such extent, the Administrative
Agent shall have no responsibility to any Lender for the failure by the Administrative Agent to comply with any of the Administrative Agent’s obligations to any Borrower under the Loan Documents or otherwise. The Lenders agree to indemnify the
Administrative Agent (to the extent not reimbursed under Section 11.5, but without limiting the obligations of any Borrower under Section 11.5) ratably in accordance with the aggregate principal amount of the Loans held by the Lenders
(or, if no Loans are at the time outstanding, ratably in accordance with their respective Commitments), for any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and
nature whatsoever that may be imposed on, incurred by or asserted against the Administrative Agent (including by any Lender) arising out of or by reason of any investigation in or in any way relating to or arising out of this Agreement or any other
Loan Document or any other documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby (including, without limitation, the costs and expenses that any Borrower is obligated to pay under Section
11.5, but excluding, unless a Event of Default has occurred and is continuing, normal administrative costs and expenses incident to the performance of its agency duties hereunder) or the enforcement of any of the terms hereof or thereof or of
any such other documents, provided that no Lender shall be liable for any of the foregoing to the extent they arise from the Administrative Agent’s breach of its standard of care set forth in the first sentence of this Section. 
  
 Section 13.7 Non-Reliance on Administrative Agent and Other
Lenders. Each Lender agrees that it has, independently and without reliance on the Administrative Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own credit analysis of any
Borrower and its Affiliates and decision to enter into this Agreement and that it will, independently and without reliance upon the Administrative Agent or any other Lender, and based on such documents and information as it shall deem appropriate at
the time, continue to make its own analysis and decisions in taking or not taking action under this Agreement or under any other Loan Document. Subject to the provisions of the first sentence of Section 13.5, the Administrative Agent shall
not be required to keep itself informed as to the performance or observance by any Borrower of this Agreement or any of the other Loan Documents or any other document referred to or provided for herein or therein or to inspect the Properties or the
books of any Borrower or any of its Affiliates. Except for notices, reports and other documents and information expressly required to be furnished to the Lenders by the Administrative Agent hereunder or as otherwise agreed by the Administrative
Agent and the Lenders, the Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the affairs, financial condition or business of any Borrower or any of its Affiliates
that may come into the possession of the Administrative Agent or any of its affiliates. 
  
 Section 13.8 Failure to Act. Except for action expressly required of the Administrative Agent hereunder, and under the other Loan Documents, the Administrative Agent shall in all cases be fully justified
in failing or refusing to act hereunder and thereunder unless it shall receive further assurances to its satisfaction from the Lenders of their indemnification obligations 

  

 -129- 

 
under Section 13.5 against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action.

  
 Section 13.9 Resignation of Administrative
Agent. The Administrative Agent may resign at any time by giving notice thereof to the Lenders and the Borrowers but such resignation shall not be effective until a new successor Administrative Agent accepts such appointment. Upon any such
resignation, the Controlling Lenders shall have the right to appoint a successor Administrative Agent, which successor shall: (a) be a financial institution that has knowledge and experience comparable to the resigning Administrative Agent’s
knowledge and experience in the servicing of loans similar to the Loans hereunder; and (b) be subject to the approval of the Borrowers, which approval shall not be unreasonably withheld. If no successor Administrative Agent shall have been so
appointed by the Controlling Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent’s giving of notice of resignation of the retiring Administrative Agent, then the retiring
Administrative Agent shall appoint an interim successor Administrative Agent as determined by the retiring Administrative Agent in its reasonable discretion, to serve in such capacity until such time as the Controlling Lenders and the Borrowers
agree upon a successor administrative agent, and upon the acceptance of such appointment by the successor Administrative Agent, the retiring Administrative Agent’s resignation shall become effective and the retiring Administrative Agent shall
be discharged from its duties and obligations hereunder. Upon the acceptance of any appointment as the Administrative Agent hereunder by a successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder (if not already discharged therefrom as
provided above in this Section 13.9). The fees payable by the Borrowers to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrowers and such successor. After any
retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this Section 13 and Section 11.5 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by
it while it was acting as the Administrative Agent. 
  
 [NO
FURTHER TEXT ON THIS PAGE] 
  

 -130- 

 EXECUTED as an instrument under seal as of the date first written above. 
  

			
	SENIOR LENDERS:
	
	MASSACHUSETTS MUTUAL LIFE
INSURANCE COMPANY
		
	 By:
	 	David L. Babson & Company Inc.,
its authorized agent
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	JUNIOR LENDERS:
	
	MASSACHUSETTS MUTUAL LIFE
INSURANCE COMPANY
		
	 By:
	 	David L. Babson & Company Inc.,
its authorized agent
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  
 [Signatures
continue on the following page] 
  

			
	BORROWER:
	
	 SUNSTONE LAX AIRPORT, LLC

		
	 By:
	 	 
	 	 	Jon Kline
	 	 	Vice President

  

			
	Principal place of business and chief executive office:
	
	 903 Calle Amanecer, Suite 100
 San Clemente,
CA 92673

	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  
 [Signatures
continue on the following page] 
  

			
	BORROWER:
	
	 SUNSTONE SH HOTELS L.L.C.

		
	 By:
	 	 
	 	 	Jon Kline
	 	 	Vice President

  

			
	Principal place of business and chief executive office:
	
	 903 Calle Amanecer, Suite 100
 San Clemente,
CA 92673

	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  
 [Signatures
continue on the following page] 
  

			
	BORROWER:
	
	 SUNSTONE OP PROPERTIES L.L.C.

		
	 By:
	 	 
	 	 	Jon Kline
	 	 	Vice President

  

			
	Principal place of business and chief executive office:
	
	 903 Calle Amanecer, Suite 100
 San Clemente,
CA 92673

	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  
 [Signatures
continue on the following page] 
  

			
	BORROWER:
	
	 SUNSTONE CHANDLER, LLC

		
	By:	 	 
	 	 	 Jon Kline
 Vice President

  

			
	Principal place of business and chief executive office:
	
	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  
 [Signatures
continue on the following page] 
  

			
	BORROWER:
	
	 SHP OGDEN, LLC

		
	By:	 	 
	 	 	 Jon Kline
 Vice President

  

			
	Principal place of business and chief executive office:
	
	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  
 [Signatures
continue on the following page] 
  

			
	ADMINISTRATIVE AGENT:
	
	 MASSACHUSETTS MUTUAL LIFE
 INSURANCE
COMPANY

		
	By:	 	 David L. Babson & Company Inc.,
 its authorized agent

		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

 EXHIBIT A 
  
 LEGAL DESCRIPTIONS OF PROPERTIES 
  
 (See attached) 
  

 EXHIBIT B-1 
  
 [Form of Senior Floating Note] 
  
 SENIOR PROMISSORY NOTE 
  

			
	 $                    
	  	August     , 2003
	 	  	Boston, Massachusetts

  
 FOR VALUE RECEIVED,
SUNSTONE LAX AIRPORT, LLC, SUNSTONE SH HOTELS L.L.C., SUNSTONE OP PROPERTIES L.L.C., SUNSTONE CHANDLER, LLC, AND SHP OGDEN, LLC, jointly and severally, hereby promise to pay to
                         or, provided that the registration provisions referred to below have been satisfied, to its
successors and assigns (a “Lender”), the principal sum of [                    ] AND 00/100 Dollars
($                    ) in lawful money of the United States of America and in immediately available funds to the account of the Lender,
pursuant to written instructions provided by the Lender to the Borrowers and to the Administrative Agent referred to below or, if so directed by the Lender, to such Administrative Agent for the account of the Lender (the Agreement referred to below
hereby constituting such a direction), on the dates and in the principal amounts provided in the Agreement, and to pay interest on the unpaid principal amount of such Loan, in like money and funds, for the period commencing on the date of such Loan
until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Agreement. 
  
 The date, amount, and interest rate of the Loan made by the Lender to the Borrowers, and each payment made on account of the principal thereof, shall be
recorded by the Lender on its books, provided that the failure of the Lender to make any such recordation shall not affect the obligations of the Borrowers to make a payment when due of any amount owing under the Agreement or hereunder in respect of
the Loan made by the Lender. 
  
 This Note is one of the Senior
Floating Notes referred to in the Loan Agreement, dated as of August     , 2003 (as modified and supplemented and in effect from time to time, the “Agreement”) between the Borrowers, the lenders
party thereto (including the Lender) and Massachusetts Mutual Life Insurance Company (together with its successors and permitted assigns as administrative agent thereunder, the “Administrative Agent”), and evidences the Loan
made by the Lender thereunder. 
  
 Terms used but not defined in
this Note have the respective meanings assigned to them in the Agreement. This Note is secured by, and has the benefit of, the Mortgages on all of the Properties, the Assignments of Leases and Rents with respect to all of the Properties, the
Collateral Assignment of Interest Rate Cap Agreement, the Subordination of Management 

  

 
Agreement, the Hazardous Materials Indemnity Agreement and certain other Loan Documents. This Note is subject to the terms and provisions of the Agreement.

  
 The Agreement provides for the acceleration of the maturity of
this Note upon the occurrence of certain events and for prepayment of this Note, in whole or in part, upon the terms and conditions specified therein. 
  
 This Note is subject to certain registration provisions set forth in the Agreement and may only be assigned and transferred by the Lender in compliance
with such provisions. 
  
 THIS SENIOR FLOATING NOTE MAY ALSO BE
SUBJECT TO CERTAIN RESTRICTIONS ON SALE OR TRANSFER AS SET FORTH IN SECTION 2.1 (f) OF THE AGREEMENT. 
  
 Notwithstanding anything contained herein to the contrary, the Borrowers’ liability hereunder is subject to the limitation on liability provisions of
Article 12 of the Agreement, which Article 12 is incorporated herein by reference, mutatis mutandis, as if such Article 12 was set forth in full herein. 
  
 The liabilities of each Person identified as a “Borrower” below shall be joint and several under this Agreement.

  
 This Note shall be governed by, and construed in accordance
with, the laws of the Commonwealth of Massachusetts. 
  
 [BORROWER
SIGNATURE PAGES FOLLOW] 
  

			
	BORROWER:
	
	 SUNSTONE LAX AIRPORT, LLC

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  
 [Signatures
continue on the following page] 
  

			
	BORROWER:
	
	 SUNSTONE SH HOTELS L.L.C.

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  
 [Signatures
continue on the following page] 
  

			
	BORROWER:
	
	 SUNSTONE OP PROPERTIES L.L.C

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  
 [Signatures
continue on the following page] 
  

			
	BORROWER:
	
	 SUNSTONE CHANDLER, LLC

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  
 [Signatures
continue on the following page] 
  

			
	BORROWER:
	
	 SHP OGDEN, LLC

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  

 EXHIBIT B-2  
  
 [Form of Junior Floating Note] 
  
 JUNIOR PROMISSORY NOTE 
  

			
	$                    	  	August     , 2003
	 	  	Boston, Massachusetts

  
 FOR VALUE RECEIVED,
SUNSTONE LAX AIRPORT, LLC, SUNSTONE SH HOTELS L.L.C., SUNSTONE OP PROPERTIES L.L.C., SUNSTONE CHANDLER, LLC, AND SHP OGDEN, LLC, jointly and severally, hereby promise to pay to
                                        
or, provided that the registration provisions referred to below have been satisfied, to its successors and assigns (a “Lender”), the principal sum of
[                        ] AND 00/100 Dollars
($                        ) in lawful money of the United States of America and in immediately available funds to the
account of the Lender, pursuant to written instructions provided by the Lender to the Borrowers and to the Administrative Agent referred to below or, if so directed by the Lender, to such Administrative Agent for the account of the Lender (the
Agreement referred to below hereby constituting such a direction), on the dates and in the principal amounts provided in the Agreement, and to pay interest on the unpaid principal amount of such Loan, in like money and funds, for the period
commencing on the date of such Loan until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Agreement. 
  
 The date, amount, and interest rate of the Loan made by the Lender to the Borrowers, and each payment made on account of the principal thereof, shall be
recorded by the Lender on its books, provided that the failure of the Lender to make any such recordation shall not affect the obligations of the Borrowers to make a payment when due of any amount owing under the Agreement or hereunder in respect of
the Loan made by the Lender. 
  
 This Note is one of the Junior
Floating Notes referred to in the Loan Agreement, dated as of August    , 2003 (as modified and supplemented and in effect from time to time, the “Agreement”) between the Borrowers, the lenders
party thereto (including the Lender) and Massachusetts Mutual Life Insurance Company (together with its successors and permitted assigns as administrative agent thereunder, the “Administrative Agent”), and evidences the Loan
made by the Lender thereunder. 
  
 THIS JUNIOR FLOATING NOTE IS
SUBORDINATE AND JUNIOR TO THE SENIOR FLOATING NOTES IN PRIORITY OF RIGHTS TO RECEIVE PAYMENTS AND IN CERTAIN OTHER RESPECTS, ALL AS SET FORTH IN THE AGREEMENT. 
  

 Terms used but not defined in this Note have the respective meanings assigned to them in the Agreement.
This Note is secured by, and has the benefit of, the Mortgages on all of the Properties, the Assignments of Leases and Rents with respect to all of the Properties, the Collateral Assignment of Interest Rate Cap Agreement, the Subordination of
Management Agreement, the Hazardous Materials Indemnity Agreement and certain other Loan Documents. This Note is subject to the terms and provisions of the Agreement. 
  
 The Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events and for
prepayment of this Note, in whole or in part, upon the terms and conditions specified therein. 
  
 This Note is subject to certain registration provisions set forth in the Agreement and may only be assigned and transferred by the Lender in compliance with such provisions. 
  
 THIS JUNIOR FLOATING NOTE MAY ALSO BE SUBJECT TO CERTAIN RESTRICTIONS ON
SALE OR TRANSFER AS SET FORTH IN SECTION 2.1(f) OF THE AGREEMENT. 
  
 Notwithstanding anything contained herein to the contrary, the Borrowers’ liability hereunder is subject to the limitation on liability provisions of Article 12 of the Agreement, which Article 12 is incorporated herein by
reference, mutatis mutandis, as if such Article 12 was set forth in full herein. 
  
 The liabilities of each Person identified as a “Borrower” below shall be joint and several under this Agreement. 
  
 This Note shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts. 

 
 [BORROWER SIGNATURE PAGES FOLLOW] 
  

			
	BORROWER:
	
	 SUNSTONE LAX AIRPORT, LLC

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  
 [Signatures
continue on the following page] 
  

			
	 BORROWER:

	
	 SUNSTONE SH HOTELS L.L.C.

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  
 [Signatures
continue on the following page] 
  

			
	 BORROWER:

	
	 SUNSTONE OP PROPERTIES L.L.C.

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  
 [Signatures
continue on the following page] 
  

			
	 BORROWER:

	
	 SUNSTONE CHANDLER, LLC

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  
 [Signatures
continue on the following page] 
  

			
	 BORROWER:

	
	 SHP OGDEN, LLC

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	 Address for Notices:

	
	 c/o Sunstone Hotel Investors, L.L.C.

	 903 Calle Amanecer, Suite 100

	 San Clemente, CA 92673

  

 EXHIBIT C 
  
 [Form of Assignment and Acceptance] 
  
 ASSIGNMENT AND ACCEPTANCE 
  
 Reference is made to the Loan Agreement dated as of August         , 2003 (as amended and in effect on the
date hereof, the “Agreement”), among SUNSTONE LAX AIRPORT, LLC, SUNSTONE SH HOTELS L.L.C., SUNSTONE OP PROPERTIES L.L.C., SHP OGDEN, LLC, and SUNSTONE CHANDLER, LLC, each a Delaware limited liability company,
the Lenders named therein and MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, as Administrative Agent for the Lenders. Terms defined in the Agreement are used herein with the same meanings. 
  
 The Assignor named below hereby sells and assigns, without recourse, to the
Assignee named below, and the Assignee hereby purchases and assumes, without recourse, from the Assignor, effective as of the Assignment Date set forth below, the Note set forth below together with the Assignor’s rights and obligations as a
Lender with respect to such Note under the Agreement. The Assignee hereby acknowledges receipt of a copy of the Agreement. From and after the Assignment Date (i) the Assignee shall be a party to and be bound by the provisions of the Agreement and,
in each case, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall relinquish its rights and be released from its obligations under the Agreement with respect to the Note it has transferred to Assignee. In case of a
transfer of any Note to Assignee, this Assignment and Acceptance shall not be effective without compliance with the registration requirements of Section 11.9(1) of the Agreement. 
  
 This Assignment and Acceptance is being delivered to Administrative Agent together with such representations and warranties
of Assignee and any opinion of counsel with respect to such transfer as Administrative Agent may reasonably require and, if the Assignee is not already a Lender under the Agreement, an administrative questionnaire in the form supplied by
Administrative Agent, duly completed by the Assignee. 
  
 This
Assignment and Acceptance shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts. 
  
 The Assignor represents and warrants to the Assignee that the Assignor is the registered owner of the Note which Assignor has transferred to Assignee free
and clear of any adverse interest therein. The Assignor and the Assignee represent and warrant to each other that they are, respectively, authorized to execute and deliver this Assignment and Acceptance. 
  
 Date of Assignment: 
 Legal Name of Assignor: 
 Legal Name of Assignee: 
  
 Assignee’s Address for Notices: 
  

 Effective Date of Assignment (“Assignment Date”): 
  
 Description of Note: 
  
 The terms set forth above and below are hereby agreed to: 
  

			
	[NAME OF ASSIGNOR], as Assignor
		
	By:	 	 
	 Name:

	 Title:

  

			
	 [NAME OF ASSIGNEE], as Assignee

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  
 The undersigned hereby consents
to the within assignment. 
  

			
	MASSACHUSETTS MUTUAL LIFE
	INSURANCE COMPANY
	As Administrative Agent
		
	By:	 	 David L. Babson & Company Inc.

	 	 	 Its authorized agent

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 EXHIBIT D  
  
 ORGANIZATION CHART OF BORROWER AND BORROWER PARTIES 
  

 EXHIBIT E  
  
 ALLOCATED LOAN AMOUNTS AND PERCENTAGES 
  

						
	 Individual Property:

	  	Allocated Loan Amount:

	  	Allocated Percentage:

	 Property name/address
	  	$	                            	  	            %

  

 EXHIBIT F 
  
 CONDEMNATIONS AND POTENTIAL CONDEMNATIONS 
  

 EXHIBIT G 
  
 INTEREST RATE HEDGE AGREEMENT 
  

 EXHIBIT H 
  
 FORM OF DEPOSIT ACCOUNT CONTROL AGREEMENT 
  

 EXHIBIT I 
  
 FORM OF MONTHLY OPERATING STATEMENT 
  

 EXHIBIT J 
  
 FORM OF REMAINDER OF YEAR QUARTERLY REPORT 
  

 EXHIBIT K 
  
 FORM OF TRAILING 12-MONTH QUARTERLY REPORT 
  

 EXHIBIT L 
  
 FORM OF SMITH TRAVEL RESEARCH REPORT 
  

 EXHIBIT M 
  
 FORM OF CAPEX DRAW REQUEST 
  

 EXHIBIT N 
  
 FORM OF CAPEX DRAW SUMMARY 
  

 EXHIBIT N 
  
 FORM OF JOB COST REPORT – CAPEX 
  

 SCHEDULE 1 
  
 COMMITMENTS 
  

			
	 SENIOR LENDER
	  	COMMITMENT FOR SENIOR FLOATING LOANS
		
	Massachusetts Mutual Life Insurance Company	  	$                     Senior Floating Loans (subject to increase to up to
$                     pursuant to the provisions of Section 2.9 or Section 2.10)
		
	 JUNIOR LENDER
	  	COMMITMENT FOR JUNIOR FLOATING LOANS
		
	Massachusetts Mutual Life Insurance Company	  	$                     Junior Floating Loans (subject to increase to up to
$                     to the provisions of Section 2.9 or Section 2.10)
		
	 	  	 AGGREGATE COMMITMENT FOR ALL FLOATING
LOANS:

		
	 	  	$345,000,000 Floating Loans (subject to increase to up to $399,500,000 pursuant to the provisions of Section 2.9 or Section 2.10)

  

 SCHEDULE 2 
  
 CLOSING CONDITIONS 
  
 The closing and advance of the Loans shall be subject to the Administrative Agent’s receipt, review, approval and/or confirmation of the following,
at the Borrowers’ cost and expense to the extent provided in the term sheet, each in form and content reasonably satisfactory to the Administrative Agent: 
  

1. The Borrowers shall have provided the Administrative Agent with a description of the ownership and Control structure of the Borrower and the
Borrower Parties and any entities or individuals serving as sponsors or indemnitors in connection with the Loan, including such organization chart(s) as shall be reasonably required to accurately describe such structure. 
  
 2. Each Borrower, each Borrower Party and any other Person whose signature is
required on a document for the closing of the Loans shall have executed and delivered the Loan Documents. 
  
 3. The Borrowers shall have paid all fees and expenses in connection with the transaction at the times and to the extent required by the term sheet.

  
 4. The Borrowers shall have furnished all documentation
required by the Administrative Agent, including an opinion of the Borrowers’ counsel satisfactory to the Administrative Agent (i) confirming the legal existence and the due authorization of each Borrower and each Borrower Party, the general
partners or managing members of each Borrower, each Borrower Party, and such other Persons as are reasonably required by the Administrative Agent, (ii) opining that the Loan Documents are legal, valid, binding and enforceable, and (iii) opining as
to such other matters as the Administrative Agent may reasonably request or as are commonly required by lenders of commercial mortgage loans. 
  
 5. Each Borrower, each Borrower Party, and such other Persons as are reasonably required by the Administrative Agent shall furnish to the Administrative
Agent an affidavit relating to such Person’s organization and authority, and there shall be attached thereto certified copies of all of their respective organizational documents and documents, consents and/or resolutions evidencing their
respective existence, good standing, capacity and authority to engage in this transaction and in any transaction or business in connection with which the Loans are made, and the qualifications of signers to execute the Loan Documents. 
  
 6. Each Borrower, each Borrower Party, and such other Persons as are
reasonably required by the Administrative Agent shall furnish prior to the closing and with each disbursement of the Loan (and subsequently upon request) such audited financial statements prepared by an independent party as may be required by the
Administrative Agent, attesting to such Person’s financial condition. Each Borrower shall also provide certified copies of the tax returns for such Persons as Lender may request. At the time set for each disbursement of the Loans, the
Administrative Agent may require updated audited financial statements and/or tax returns for all or any of the forgoing Persons and the properties and shall be satisfied that there 

  

 
has been no material adverse change in any rent roll submitted in connection with the closing of the Loans or in the financial condition of the foregoing
Persons or the Properties from that shown on the financial statements required to be submitted in connection with closing of the Loans and that none of the above Persons are involved and have not in the past been involved in any bankruptcy,
reorganization or insolvency proceedings, and that such parties are not and have not been in default on any indebtedness owing to any Lender or to any affiliate of any Lender or on any indebtedness obtained for commercial purposes. As of the time of
each disbursement of the Loans, no default shall have occurred and be continuing in the performance of any obligation, covenant or provision contained in any instruments evidencing or securing the Loans or incidental to it. The Administrative Agent
shall have the right to obtain investigative consumer credit reports and such other references on the Borrowers or the Borrower Parties as the Administrative Agent deems appropriate, and each Borrower agrees to furnish upon request an authorization
to obtain such a report and references for any party referenced above. 
  
 7. On the Closing Date, the Borrowers shall own free and clear of all liens, security interests and encumbrances, all Personalty used or maintained in connection with or derived from the operation of the Properties. The Borrowers shall give
the Administrative Agent an inventory of the Personalty by serial number or account number, as appropriate. The Loan Documents shall create a properly perfected first priority security interest on all Personalty. The Personalty and the Properties
shall not be subject to any other encumbrance. Any leased Personalty and all costs in connection therewith must be disclosed to and approved by the Administrative Agent and the Lenders and, upon approval, assigned to the Administrative Agent (on
behalf of the Lenders). With respect to any assigned Personalty leases, the Borrowers shall also obtain for the benefit of the Lenders a recognition agreement in a form satisfactory to the Administrative Agent from all such lessors of Personalty.

  
 8. The Borrowers shall give to the Administrative Agent a
present, irrevocable and recordable assignment of all leases, rents and revenues that now or hereafter affect or are derived from the Properties. The Borrowers shall also give the Administrative Agent a first priority security interest in all income
(including accounts) derived from the operation of the Properties. The signed original (or a signed copy certified to be true, correct and complete by the applicable Borrowers) of all leases, including amendments and exhibits, shall be deposited
with the Administrative Agent prior to the closing of the Loans. All leases and tenancies shall be in form and substance satisfactory to Lender. Borrower shall use commercially reasonable efforts to furnish a tenant estoppel letter for each tenant
of the Properties on a form satisfactory to the Administrative Agent indicating the tenant has unconditionally accepted and occupies its premises, is paying the rent required under its lease, that its lease is in full force and effect without
default and certifying or agreeing to such other matters as Lender may require. Each Borrower shall submit to the Administrative Agent on the Closing Date and each disbursement date, a rent roll certified by such Borrower as true and correct as of
such date. Any ground lease upon the Properties shall be in all respects satisfactory to the Administrative Agent, and the fee owner(s) shall provide the Administrative Agent with an estoppel letter and an acknowledgement and recognition agreement
that is satisfactory to the Administrative Agent. 
  
 9. The
Borrowers shall have provided evidence of insurance as required by this Agreement. 
  

 10. The Borrowers shall have provided an ALTA (or equivalent) mortgagee policy of title insurance, on the
ALTA 1970 form (or a 1992 form with an endorsement deleting the creditors rights exception) or other title insurance policy(s) as the Administrative Agent shall require insuring that each Mortgage is a first-priority Lien on the applicable
Individual Property and related collateral in form and substance satisfactory to the Administrative Agent, together with such affirmative insurance and endorsements as the Administrative Agent shall require. The Borrowers shall also provide
reinsurance reasonably acceptable to the Administrative Agent on the then current ALTA Facultative form with direct access and in such amounts as the Administrative Agent shall determine. The Borrowers shall cause to be furnished endorsements to
each such title policy for each Earnout Advance made after the initial closing. 
  
 11. The Borrowers shall have furnished to the Administrative Agent at least ten (10) Business Days prior to the scheduled closing date three (3) copies of an as-built survey of each Individual Property prepared by a
licensed surveyor or engineer, of current date, and certified to the Administrative Agent (on behalf of the Lenders) and the title insurance company with a form of certification acceptable to the Administrative Agent. Each survey shall be
satisfactory in all respects to the Administrative Agent and shall have been prepared in accordance with the Administrative Agent’s “Minimum Requirements for Surveys.” 
  
 12. On the Closing Date and on each Disbursement Date, the Properties (including all buildings and improvements) shall have
been completed to the Administrative Agent’s satisfaction, substantially in accordance with the plans and specifications approved by the Administrative Agent, and shall not have been damaged by fire or other casualty or be the subject of
condemnation proceedings or to the actual knowledge of any Borrower any threat of condemnation proceedings. 
  
 13. Each Borrower shall have submitted to the Administrative Agent for its approval, not later than ten (10) days from the date on which the Lenders issue
a commitment for the Loans, final, complete and signed architectural, civil, structural, foundation, plumbing, electrical and mechanical plans and specifications and a soil report for the Properties, including all buildings and improvements
constructed and to be constructed. No material change shall be made in the final plans and specifications without the prior written consent of the Administrative Agent. 
  
 14. The Administrative Agent may retain outside consulting engineers (collectively, the “Consulting
Engineers”) to review the plans and specifications and soil report described in the immediately preceding section to review and/or complete the Engineering Requirements and Environmental Requirements (each as hereinafter defined), to
review any seismic or other engineering reports and to make inspections of the Properties. The Borrowers’ costs under this section for the Consulting Engineers are included within the Due Diligence Fee provided for in the term sheet. Any
third-party reports supplied by the Borrowers in order to satisfy the Engineering Requirements or the Environmental Requirements must be approved by and satisfactory to the Administrative Agent and Borrower must cause each third-party consultant to
deliver to the Administrative Agent a reliance letter for the benefit of the Administrative Agent in form and substance satisfactory to the Administrative Agent. 
  

 15. On the Closing Date, each Individual Property shall be in compliance with all federal, state and
local laws, ordinances, rules and regulations respecting the environment and, additionally, shall be free from asbestos, toxic mold, hydrocarbons and any substance deemed a toxic or hazardous substance under federal, state or local laws, ordinances,
rules and regulations (collectively, “Hazardous Materials”). No portion of the Properties shall be leased, used or occupied for dry cleaning operations, or the storage of any chemicals used in the dry cleaning process.

  
 16. Prior to disbursement of the Loan, each Borrower shall
furnish the Administrative Agent with an environmental site assessment satisfactory to the Administrative Agent and prepared by an independent environmental consultant approved by Lender (the “Environmental Consultant”)
showing that each Individual Property meets the requirements of the immediately preceding section. The environmental site assessment shall be performed in accordance with Lender’s “Minimum Standards for Environmental Site
Assessments”. All costs and expenses of the Environmental Consultant and the environmental site assessment shall be included in the Due Diligence Fee. The requirements set forth in this section and the immediately preceding section are
collectively referred to as the “Environmental Requirements.” 
  
 17. In connection with the delivery of all third party reports, each Borrower will be required to comply with the Administrative Agent’s standard “Instructions to Borrowers on Engineering Issues” The
Administrative Agent’s “Minimum Requirements for Surveys”, the Administrative Agent’s “Environmental Requirements” and the Administrative Agent’s Instructions to Borrowers on Engineering Issues” are
collectively referred to herein as the “Engineering Requirements.” 
  
 18. The Borrowers shall have furnished proof satisfactory to the Administrative Agent that each Individual Property is in compliance with all federal, state and local government laws, regulations and ordinances
including, but not limited to land use, development, zoning, building codes, American with Disabilities Act, and the Environmental Requirements. 
  
 19. All appraisals, environmental reports and building condition reports delivered to the Administrative Agent prior to the execution of this Agreement
shall be, to the extent then available, certified to the Administrative Agent (on behalf of the Lenders) without modification or change thereto in the form reasonably requested by the Administrative Agent which may include certification to
additional participants, co-lenders and/or investors in a Secondary Market Transaction. 
  
 20. The Borrowers shall have furnished to the Administrative Agent originals or copies of the Management Agreements and Approved Franchise Agreements, certified by each Borrower as being true, correct and complete.

  
 21. The Borrowers shall have deposited with the Administrative
Agent the amounts required to fund the Reserves. 
  
 22. There
shall not have occurred since the date of the term sheet any material adverse change, or any material deterioration thereof, in the financial condition of the Borrower 

  

 
or any Borrower Party or any material adverse change in the condition (financial or otherwise) of any Individual Property. 
  
 23. No material condemnation (other than those condemnations or potential
condemnations listed on Exhibit F attached hereto) or adverse zoning or usage change proceeding shall have occurred or shall have been threatened against any Individual Property; no Individual Property shall have suffered any significant
damage by fire or other casualty which has not been repaired; no structural change to any Individual Property shall have occurred or to any of the improvements thereon, no law, regulation, ordinance, moratorium, injunctive proceeding, restriction,
litigation, action, citation or similar proceeding or matter shall have been enacted, adopted, or threatened by any third party or governmental authority, which would have, in the Administrative Agent’s reasonable judgment, a material adverse
effect on any Borrower, any Borrower Party, any Individual Property, the Administrative Agent or any Lender. 
  
 24. All fees and commissions (other than fees or commissions that are the Administrative Agent’s or Lender’s direct obligations) payable to real
estate brokers, mortgage brokers, or any other brokers or agents in connection with the Loans shall have been paid. 
  
 25. The Borrowers shall have furnished the Interest Rate Cap Agreement covering the original principal amount of the Floating Notes and in all respects
satisfactory to the Administrative Agent. 
  
 26. All outstanding
indebtedness and all other amounts secured by the Properties shall have been paid in full and a release of all security documents filed or of record with respect to such liens. 
  
 27. The representations and warranties contained in this Loan Agreement and in all other Loan Documents shall be true and
correct. 
  
 28. No Event of Default shall have occurred or exist.

  
 29. All reasonable out-of-pocket expenses incurred by the
Administrative Agent and Lenders in connection with the Loans shall have been paid or shall be paid out of the proceeds of the Loans including, without limitations, legal fees and disbursements of the Administrative Agent’s and Lenders’
counsel and of local counsel, credit/application fees, accounting fees, third party report costs, recording fees, title insurance premiums, lien and UCC searches, survey costs and other reasonable out-of-pocket expenses related to due diligence and
closing. 
  

 SCHEDULE 3 
  
 HOTEL ACCOMMODATIONS, ROOM NUMBERS AND TYPES, ETC. 
  

 SCHEDULE 4 
  
 INSURANCE CLAIMS 
  

											
	 Claim Detail

	  	Status

	  	 Incurred
 Loss

	  	 Incurred
 Total

	  	Paid
Loss

	  	Paid
Total

	 General Liability Losses:
	  	 	  	 	  	 	  	 	  	 
						
	 Property Losses:
	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 TOTAL:
	  	 	  	 	  	 	  	 	  	 

  

													
	 	  	Status

	  	 Incurred
 Medical

	  	Incurred
Indemnity

	  	 Incurred
 Expense

	  	 Paid
 Medical

	  	 Paid
 Indemnity

	 Workers Compensation
	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 TOTAL:
	  	 	  	 	  	 	  	 	  	 	  	 

  

 SCHEDULE 5 
  
 HOTEL OPERATING AGREEMENTS 
  

 SCHEDULE 5A 
  
 MANAGEMENT AGREEMENTS AND MANAGERS 
  

 SCHEDULE 5B 
  
 FRANCHISE AGREEMENTS 
  

 SCHEDULE 6  
  
 INITIAL APPROVED BUDGET 
  

 SCHEDULE 7 
  
 DEFERRED MAINTENANCE SCHEDULE 
  

					
	 Property Name and Address

	  	 Maintenance Work Required

	  	 Estimate of Cost and Amount Deposited in
Deferred Maintenance Reserve on Closing Date

	 	  	 	  	 
	 	  	 	  	 

  

 SCHEDULE 8  
  
 IMMEDIATE RELEASE PROPERTIES 
  

 SCHEDULE 9 
  
 CAPITAL EXPENDITURE RESERVES 
  

					
	 Property Name and Address

	 	 Current Capital Expenditure Reserve Percentage
(as set forth in Management Agreement)

	 	 Amount of Current FF&E Reserves Transferred
to Capital Expenditure Reserve on Closing
Date

	 	 	 	 	 
	 	 	 	 	 

  

 SCHEDULE 10 
  
 GROUND LEASES AND GROUND LEASE RENT AMOUNTS 
  

			
	 Property Name and Address

	  	 Ground Lease information (including current monthly ground rent)

	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	TOTAL CURRENT MONTHLY GROUND RENT DUE UNDER GROUND LEASES:	  	 

  

 SCHEDULE 11 
  
 OPERATING LEASES AND OTHER LEASES AFFECTING PROPERTIES 
  
 Operating Leases: 
  
 Material Leases: 
  
 Capital Leases: 
  
 Other Leases:

  

 SCHEDULE 12  
  
 ENVIRONMENTAL MATTERS 
  

 SCHEDULE 13 
  
 ENTITIES FILING CONSOLIDATED TAX RETURNS 
  

 SCHEDULE 14  
  
 MECHANIC’S LIENS, ETC. 
  

 SCHEDULE 15 
  
 ILLUSTRATIONS OF CALCULATION OF 
 ADMINISTRATIVE AGENT LOST SERVICING FEE 
  
 The operation of the definition of “Administrative Agent Lost Servicing Fee” is illustrated by the following chart and examples, which are provided for reference only. In the event of any conflict or
ambiguity between the terms of the definition of “Administrative Agent Lost Servicing Fee” the following chart or examples, the terms of the definition of “Administrative Agent Lost Servicing Fee” shall control in all respects.

  

									
	 	  	 	  	 Time at which prepayment is made

	 	  	 	  	 Loan Months 1-3

	  	 Loan Months 4-12

	  	 Loan Months 13-

	 Percentage by which aggregate principal amounts prepaid (including amount of current prepayment) is to
 be multiplied in order to calculate Administrative
 Agent Lost Servicing
Fee
	  	If Cumulative Prepayment Amount (including amount of prepayment being made) during first 3 Loan Months was equal to or less than $50,000,000	  	0%	  	0.20%	  	0%
	  	If Cumulative Prepayment Amount (including amount of prepayment being made) during first 3 Loan Months was greater than $50,000,000	  	0.25%	  	0.20%	  	0%

  
 Example 1.
Borrowers make a prepayment of $20,000,000 during the third Loan Month. They have made no previous prepayments. There is no Administrative Agent Lost Servicing Fee due in connection with such prepayment. 
  
 Example 2. Borrowers make a prepayment of $20,000,000 during the third
Loan Month. They have made two previous prepayments of $20,000,000 each. The previous prepayments, taken together with the current prepayment, yield an aggregate principal prepayment of $60,000,000. There is an Administrative Agent Lost Servicing
Fee due which is equal to 0.25% multiplied by $60,000,000, or $150,000. 
  
 Example 3. Borrowers make a prepayment of $20,000,000 during the eighth Loan Month. They made three previous prepayments of $20,000,000 each during the first three Loan Months. The previous prepayments, taken together with the
current prepayment, yield an aggregate principal prepayment of $80,000,000. There is an Administrative Agent Lost Servicing Fee due which is equal to 0.20% multiplied by $80,000,000, or $160,000. However, the Borrowers should have paid an
Administrative Agent Lost Servicing Fee of $150,000 at the time of the third prepayment. If such amount was actually paid, the Borrowers receive a credit against such amount, and the Administrative Agent Lost Servicing Fee due in connection with the
most recent prepayment is the difference, $10,000. 
  

 LIST OF DEFINED TERMS 
  

			
	 $ 8
	  	 
	 Access Laws
	  	2
	 Additional Costs
	  	2
	 Adjusted Libor Rate
	  	2
	 Administrative Agent
	  	2
	 Administrative Agent Loss Servicing Fee
	  	2,3
	 Affiliate
	  	3
	 Agreement
	  	3
	 Allocated Loan Amount
	  	3
	 Allocated Percentage
	  	4
	 Alternate Interest Rate
	  	4
	 Alternate Interest Rate Loans
	  	4
	 Annual Budget
	  	4
	 Applicable Lending Office
	  	4
	 Appraisal Event
	  	4
	 Appraised Value
	  	4
	 Approved Budget
	  	4
	 Approved Financial Institution
	  	4
	 Approved Franchise Agreements
	  	4
	 Assignment and Acceptance
	  	5
	 Assignments of Leases and Rents
	  	5
	 Assignments of Licenses
	  	5
	 Award
	  	5
	 Bankruptcy Party
	  	5
	 Basle Accord
	  	5
	 Books and Records
	  	5
	 Borrower
	  	5
	 Borrower Party
	  	5
	 Business Day
	  	5
	 Business Plan
	  	5
	 Capital Budget
	  	6
	 Capital Expenditure Reserve
	  	6
	 Capital Lease
	  	6
	 Cash Trap Period
	  	6
	 Casualty Consultant
	  	6
	 Casualty Retainage
	  	6
	 Closing Date
	  	6
	 Code
	  	6
	 Collateral Assignment of Interest Rate Cap Agreement
	  	6
	 Commitment
	  	6
	 Concentration Account
	  	6
	 Condemnation
	  	7

  

			
	 Condemnation Limit
	  	7
	 Condemnation Proceeds
	  	7
	 Continuation
	  	7
	 Continue
	  	7
	 Continued
	  	7
	 control
	  	7
	 controlled
	  	7
	 controlling
	  	7
	 Conversion
	  	7
	 Convert
	  	7
	 Converted
	  	7
	 Debt
	  	7
	 Debt Service
	  	8
	 Default Rate
	  	8
	 Deferred Maintenance Reserve
	  	8
	 Delevering Prepayment
	  	8
	 Delevering Prepayment Fee
	  	8
	 Deposit Account Control Agreement
	  	8
	 Depository Account
	  	8
	 Dollars
	  	8
	 DSCR
	  	9
	 Earnout Advance
	  	9
	 Environmental Laws
	  	9
	 ERISA
	  	9
	 Event of Default
	  	9
	 Exchange Act Filing
	  	9
	 Extension Fee
	  	9
	 Extension Right
	  	9
	 FF&E
	  	9
	 Fiscal Year
	  	9
	 Fitch
	  	9
	 Floating Interest Rate
	  	9,11,21
	 Floating Loan Amount
	  	10,12,21
	 Floating Loans
	  	10,12,22
	 Floating Notes
	  	10,12,22
	 Franchise Agreement
	  	10
	 Franchisor Warning Event
	  	10
	 Funds Release Limit
	  	10
	 GAAP
	  	10
	 Ground Lease Rent Reserve
	  	10
	 Hazardous Materials
	  	10
	 Hazardous Materials Indemnity Agreement
	  	10
	 Immediate Release
	  	10
	 Immediate Release Property
	  	10
	 Improvements
	  	10
	 Indebtedness
	  	10

  

			
	 Individual Property
	  	11
	 Initial Interest Rate Cap Agreement
	  	11
	 Institutional Investors
	  	11
	 Insurance Premiums
	  	11
	 Insurance Proceeds
	  	11
	 Interest Period
	  	11
	 Interest Rate
	  	11
	 Interest Rate Cap Agreement
	  	11
	 Leases
	  	12
	 Legal Requirements
	  	12
	 Lender
	  	12,22
	 Lenders
	  	12,22
	 Libor Base Rate
	  	12
	 Libor Breakage Fee
	  	13
	 Licenses
	  	13
	 Lien
	  	13
	 Limited Guaranty
	  	13
	 Loan Documents
	  	13
	 Loan Month
	  	14
	 Loan Year
	  	14
	 Loans
	  	14
	 Loan-to-Value-Ratio
	  	14
	 Majority Lenders
	  	7
	 Management Agreement
	  	14
	 Manager
	  	14
	 Material Capital Lease
	  	14
	 Material Lease
	  	14
	 Maturity Date
	  	14
	 Maximum Loan to Value Ratio
	  	15
	 Membership Pledge
	  	15
	 Minimum DSCR Event
	  	15
	 Monthly Operating Statement
	  	15
	 Moody’s
	  	15
	 Mortgage
	  	15
	 Multi-Party Agreement
	  	15
	 Net Cash Flow
	  	15
	 Net Operating Income
	  	15
	 Net Proceeds
	  	16
	 Net Proceeds Deficiency
	  	16
	 Net Sales Proceeds
	  	16
	 Non-Recourse Exceptions
	  	16
	 Notes
	  	16
	 OFAC
	  	16
	 OFAC Programs
	  	16
	 Operating Account
	  	16
	 Operating Budget
	  	16

  

			
	 Operating Expenses
	  	16
	 Operating Lease
	  	17
	 Operating Revenues
	  	17
	 Operator
	  	18
	 Other Release
	  	18
	 Other Release Property
	  	18
	 Participant
	  	18
	 Payment Date
	  	18
	 Permitted Encumbrances
	  	18
	 Permitted Investment
	  	18
	 Person
	  	19
	 Personalty
	  	19
	 Policies
	  	19
	 Prepayment Fee
	  	19
	 Prime Rate
	  	19
	 Properties
	  	19
	 Rate Cap Rating Criteria
	  	19
	 Rating Agencies
	  	20
	 Register
	  	20
	 Regulation D
	  	20
	 Regulatory Change
	  	20
	 Related Parties
	  	20
	 Release
	  	20
	 Release Amount
	  	20
	 Rents
	  	21
	 Replacement Interest Rate Cap Agreement
	  	21
	 Reserve Requirement
	  	21
	 Reserves
	  	21
	 Restoration
	  	21
	 S&P
	  	21
	 Scheduled Payment
	  	21
	 Secondary Market Transaction
	  	21
	 Security Agreements
	  	21
	 Servicer
	  	22
	 Servicing Agreement
	  	22
	 Severed Loan Documents
	  	22
	 Site Assessment
	  	22
	 Special Earnout Advance
	  	22
	 Special Earnout Calculation Date
	  	22
	 Special Earnout Valuation Limit
	  	22
	 Special Purpose Entity
	  	22
	 Standard Earnout Advance
	  	22
	 Standard Prepayment Fee
	  	23
	 State
	  	23
	 Stock Pledge
	  	23
	 STR Report
	  	23

  

			
	 Subordination of Management Agreements
	  	23
	 Sunstone
	  	24
	 Tarsadia Anaheim Ground Lease
	  	24
	 Tarsadia Anaheim Property
	  	24
	 Tarsadia Floor Release Amount
	  	24
	 Tarsadia Ground Lease
	  	24
	 Tarsadia Los Angeles Ground Lease
	  	24
	 Tarsadia Los Angeles Property
	  	24
	 Tarsadia Property
	  	24
	 Tarsadia San Diego Ground Lease
	  	24
	 Tarsadia San Diego Property
	  	25
	 Tax and Insurance Reserve
	  	6,9,25
	 Tax Escrow Rebalancing
	  	25
	 Taxes
	  	25
	 Title Policy
	  	25
	 Trailing Twelve-Month NOI
	  	25
	 Trapped Cash Reserve
	  	25
	 Type
	  	25
	 Uniform System of Accounts
	  	25Amended and Restated Loan Agreement, dated January 31, 2003

 Exhibit 10.5 

  
 AMENDED AND RESTATED LOAN AGREEMENT 
  
 Dated as of January 31, 2003 
  
 Between 
  
 WHP HOTEL OWNER-1, L.P., 
 WHP HOTEL OWNER-2A, L.L.C., 
 and WHP HOTEL OWNER-2B, L.L.C., 
 collectively, as Borrower 
  
 and 
  
 BEAR STEARNS COMMERCIAL MORTGAGE, INC., 
 as Lender 
  

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

		
	 I. DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	  	 
	 Section 1.1
	  	 Definitions
	  	1
	 Section 1.2
	  	 Principles of Construction
	  	34
		
	 II. GENERAL TERMS
	  	 
	 Section 2.1
	  	 Loan Commitment; Disbursement to Borrower
	  	34
	 Section 2.2
	  	 Interest Rate
	  	35
	 Section 2.3
	  	 Loan Payment
	  	41
	 Section 2.4
	  	 Prepayments
	  	42
	 Section 2.5
	  	 Release of Property
	  	44
	 Section 2.6
	  	 Lockbox Account/Cash Management
	  	47
	 Section 2.7
	  	 Extension of the Initial Maturity Date
	  	50
		
	 III. CONDITIONS PRECEDENT
	  	 
	 Section 3.1
	  	 Conditions Precedent to Closing
	  	51
		
	 IV. REPRESENTATIONS AND WARRANTIES
	  	 
	 Section 4.1
	  	 Borrower Representations
	  	55
	 Section 4.2
	  	 Survival of Representations
	  	66
	 Section 4.3
	  	 Knowledge and Other Matters
	  	66
		
	 V. BORROWER COVENANTS
	  	 
	 Section 5.1
	  	 Affirmative Covenants
	  	66
	 Section 5.2
	  	 Negative Covenants
	  	79
		
	 VI. INSURANCE; CASUALTY; CONDEMNATION; REQUIRED REPAIRS
	  	 
	 Section 6.1
	  	 Insurance
	  	86
	 Section 6.2
	  	 Casualty
	  	90
	 Section 6.3
	  	 Condemnation
	  	91
	 Section 6.4
	  	 Restoration
	  	91
		
	 VII. RESERVE FUNDS
	  	 
	 Section 7.1
	  	 Required Repairs and PIP Requirements
	  	95
	 Section 7.2
	  	 Tax and Insurance Escrow Fund
	  	97
	 Section 7.3
	  	 Replacements and Replacement Reserve
	  	98
	 Section 7.4
	  	 Ground Lease Reserve
	  	103
	 Section 7.5
	  	 Debt Service Reserve
	  	104
	 Section 7.6
	  	 CSFB Assets Escrow Fund
	  	104
	 Section 7.7
	  	 Liquidity Reserve
	  	105
	 Section 7.8
	  	 Reserve Funds, Generally
	  	105

  

 -i- 

					
	 VIII. DEFAULTS
	  	 
	 Section 8.1
	  	 Event of Default
	  	106
	 Section 8.2
	  	 Remedies
	  	109
	 Section 8.3
	  	 Remedies Cumulative; Waivers
	  	110
		
	 IX. SPECIAL PROVISIONS
	  	 
	 Section 9.1
	  	 Sale of Notes and Securitization
	  	111
	 Section 9.2
	  	 Securitization Indemnification
	  	115
	 Section 9.3
	  	 Exculpation
	  	117
	 Section 9.4
	  	 Matters Concerning Manager
	  	119
	 Section 9.5
	  	 Servicer
	  	119
	 Section 9.6
	  	 Matters Concerning Franchisor
	  	120
		
	 X. MISCELLANEOUS
	  	 
	 Section 10.1
	  	 Survival
	  	120
	 Section 10.2
	  	 Lender’s Discretion
	  	120
	 Section 10.3
	  	 Governing Law
	  	120
	 Section 10.4
	  	 Modification, Waiver in Writing
	  	122
	 Section 10.5
	  	 Delay Not a Waiver
	  	122
	 Section 10.6
	  	 Notices
	  	122
	 Section 10.7
	  	 Trial by Jury
	  	123
	 Section 10.8
	  	 Headings
	  	123
	 Section 10.9
	  	 Severability
	  	123
	 Section 10.10
	  	 Preferences
	  	124
	 Section 10.11
	  	 Waiver of Notice
	  	124
	 Section 10.12
	  	 Remedies of Borrower
	  	124
	 Section 10.13
	  	 Expenses; Indemnity
	  	124
	 Section 10.14
	  	 Schedules Incorporated
	  	126
	 Section 10.15
	  	 Offsets, Counterclaims and Defenses
	  	126
	 Section 10.16
	  	 No Joint Venture or Partnership; No Third Party Beneficiaries
	  	126
	 Section 10.17
	  	 Publicity
	  	126
	 Section 10.18
	  	 Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets
	  	126
	 Section 10.19
	  	 Waiver of Counterclaim
	  	127
	 Section 10.20
	  	 Conflict; Construction of Documents; Reliance
	  	127
	 Section 10.21
	  	 Brokers and Financial Advisors
	  	128
	 Section 10.22
	  	 Prior Agreements
	  	128
	 Section 10.23
	  	 Joint and Several Liability
	  	128
	 Section 10.24
	  	 No Release or Novation
	  	129
	 Section 10.25
	  	 Effective Date
	  	129
	 Section 10.26
	  	 Confirmation of Guarantor and Limited Guarantor
	  	129

  

 -ii- 

 SCHEDULES 
  

					
	 Schedule I
	 	–	 	 Properties – Release Amounts

			
	 Schedule II
	 	–	 	 Lockbox Properties

			
	 Schedule III
	 	–	 	 Required Repairs – Deadlines for Completion

			
	 Schedule IV
	 	–	 	 Organizational Chart of Borrower

			
	 Schedule V
	 	–	 	 Franchise Agreements

			
	 Schedule VI
	 	–	 	 Management Agreements

			
	 Schedule VII
	 	–	 	 Amortization Schedule

			
	 Schedule VIII
	 	–	 	 Liquor/Hospitality Licenses

			
	 Schedule IX
	 	–	 	 Ground Leases

			
	 Schedule X
	 	–	 	 Form of Smith Travel Research Reports

			
	 Schedule XI
	 	–	 	 PIP Requirements

			
	 Schedule XII
	 	–	 	 Assignments of Management Agreements

			
	 Schedule XIII
	 	–	 	 Manager Accounts

			
	 Schedule XIV
	 	–	 	 Allocated Purchase Prices

  

 -iii- 

 AMENDED AND RESTATED LOAN AGREEMENT 
  
 THIS AMENDED AND RESTATED LOAN AGREEMENT, dated as of January 31, 2003
(subject to Section 10.25 hereof) (as amended, restated, replaced, supplemented or otherwise modified from time to time, this “Agreement”), between BEAR STEARNS COMMERCIAL MORTGAGE, INC., a New York corporation, having
an address at 383 Madison Avenue, New York, New York 10179 (“Lender”), and WHP HOTEL OWNER-1, L.P., a Delaware limited partnership (“Borrower 1”), WHP HOTEL OWNER-2A, L.L.C., a Delaware limited
liability company (“Borrower 2A”), and WHP HOTEL OWNER-2B, L.L.C., a Delaware limited liability company (“Borrower 2B”), each having its principal place of business at 903 Calle Amenecer, Suite 100, San
Clemente, California 92673 (Borrower 1, Borrower 2A and Borrower 2B, each, an “Individual Borrower” and, collectively, “Borrower”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, Lender has made the Loan (as hereinafter defined) to Borrower
pursuant to that certain Loan Agreement, dated as of December 5, 2002, between Borrower and Lender (the “Original Loan Agreement”); 
  
 WHEREAS, Lender has agreed to incorporate the terms and provisions of the Original Loan Agreement into this Agreement which is effective as of
December 5, 2002 with respect to all of the Properties (as hereinafter defined); and 
  
 WHEREAS, as a condition precedent to the obligation of Lender to make the Loan to Borrower, each Individual Borrower has entered into a certain Pledge and Security Agreement, each dated as of December 5, 2002,
in favor of Lender (as amended, supplemented or otherwise modified from time to time, each, a “Pledge Agreement”), pursuant to which each Individual Borrower has granted to Lender a first priority security interest in the Collateral
(as defined in the related Pledge Agreement) as collateral security for the Debt (as hereinafter defined), which Collateral includes a pledge of the Pledged Lessee Interests (as hereinafter defined). 
  
 NOW THEREFORE, in consideration of the making of the Loan by Lender
and the covenants, agreements, representations and warranties set forth in this Agreement, the parties hereto hereby covenant, agree, represent and warrant that the terms and provisions of the Original Loan Agreement are hereby amended and restated
in their entirety to hereinafter read and provide as follows: 
  

	 	I.	DEFINITIONS; PRINCIPLES OF CONSTRUCTION 

  
 Section 1.1 Definitions. For all purposes of this Agreement, except as otherwise expressly required or unless the context clearly
indicates a contrary intent: 
  
 “Acceptable
Counterparty” shall mean a counterparty to the Interest Rate Cap Agreement that (a) has and shall maintain, until the expiration of the applicable Interest Rate Cap Agreement, a long-term unsecured debt rating of not less than
“AAA” by S&P and “Aaa” from 

  

 
Moody’s, which rating shall not include a “t” or otherwise reflect a termination risk, or (b) is otherwise acceptable to all Rating Agencies
rating any Securitization, as evidenced by written confirmation from all such Rating Agencies that such counterparty shall not cause a downgrade, withdrawal or qualification of the ratings assigned, or to be assigned, to the Securities or any class
thereof in any Securitization. 
  
 “Additional Insolvency
Opinion” shall have the meaning set forth in Section 4.1.30(c) hereof. 
  
 “Adjusted Release Amount” shall mean, for each Individual Property, the sum of (a) the Release Amount for such Individual Property and (b) either (x) an amount equal to ten percent (10%) of the
Release Amount provided that such Individual Property is a Release Hotel and the aggregate Adjusted Release Amounts for all Release Hotels prepaid in accordance with Section 2.5.2 hereof, including the Adjusted Release Amount for the
applicable Individual Property to be released, plus the aggregate Mezzanine Release Amounts and Junior Mezzanine Release Amounts for all Release Hotels prepaid in connection with all such releases in accordance with the Mezzanine Loan Documents and
Junior Mezzanine Loan Documents, respectively, including the Mezzanine Release Amount and Junior Mezzanine Release Amount for the applicable Individual Property to be released, is less than or equal to Thirty-One Million Dollars ($31,000,000), or
(y) twenty-five percent (25%) of the Release Amount for (i) any such Individual Property that is not a Release Hotel or (ii) if such Individual Property is a Release Hotel, that portion of its Adjusted Release Amount not included in clause (x)
above. 
  
 “Affected Property” shall have the
meaning set forth in Section 9.1.4 hereof. 
  
 “Affiliate” shall mean, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by or is under common control with such Person or is a director or officer of such Person or of an
Affiliate of such Person. 
  
 “Affiliated Loans”
shall mean a loan made by Lender to an Affiliate of Borrower, Limited Guarantor or Guarantor. 
  
 “Affiliated Manager” shall mean Sunstone Hotel Properties, Inc. or any Manager in which Borrower, Limited Guarantor, or Guarantor has, directly or indirectly, any legal, beneficial or economic
interest. 
  
 “Agent” shall mean Wells Fargo
Bank, National Association, or any successor Eligible Institution acting as Agent under the Cash Management Agreement. 
  
 “Agreement” shall mean this Loan Agreement, as the same may be amended, restated, replaced, supplemented or otherwise modified from time
to time. 
  
 “Allocated Purchase Price” shall
mean for each Individual Property the product of (a) the amount set forth on Schedule XIV hereto multiplied by (b) the quotient of the Adjusted Release Amount divided by the Release Amount for such Individual Property. 
  
 “ALTA” shall mean American Land Title Association, or any
successor thereto. 
  

 -2- 

 “Annual Budget” shall mean the operating budget, including all planned Capital
Expenditures, for the Properties prepared by Borrower in accordance with Section 5.1.11(d) hereof for the applicable Fiscal Year or other period. 
  
 “Approved Annual Budget” shall have the meaning set forth in Section 5.1.11 hereof. 
  
 “Approved Bank” shall mean a bank or other financial
institution which has a minimum long-term unsecured debt rating of at least “AA” by S&P and Fitch and “Aa2” by Moody’s. 
  
 “Assignment of Interest Rate Cap Agreement” shall have the meaning set forth in Section 2.2.7(a) hereof. 
  
 “Assignment of Leases” shall mean, with respect to each
Individual Property, that certain first priority Assignment of Leases and Rents, dated as of the Closing Date, from Borrower and Operating Lessee, collectively, as assignor, to Lender, as assignee, assigning to Lender all of Borrower’s interest
in and to the Leases and Rents of such Individual Property as security for the Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Assignment of Management Agreement” shall mean, with respect to each Individual Property, those certain
agreements relating to the Management Agreements as more particularly set forth on Schedule XII hereto, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Award” shall mean any compensation paid by any Governmental
Authority in connection with a Condemnation in respect of all or any part of any Individual Property. 
  
 “Bankruptcy Code” shall mean Title 11 of the United States Code, 11 U.S.C. §101, et seq., as the same may be amended
from time to time, and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating to bankruptcy, insolvency or creditors’ rights or any other Federal or
state bankruptcy or insolvency law. 
  
 “Basic Carrying
Costs” shall mean, with respect to each Individual Property, the sum of the following costs associated with such Individual Property for the relevant Fiscal Year or payment period: (a) Taxes, (b) Other Charges and (c) Insurance Premiums.

  
 “Borrower” shall have the meaning set forth
in the introductory paragraph hereto, together with their successors and permitted assigns. 
  
 “Borrower 1” shall have the meaning set forth in the introductory paragraph hereto, together with its successors and permitted assigns. 
  
 “Borrower 2A” shall have the meaning set forth in the introductory paragraph hereto, together with its
successors and permitted assigns. 
  

 -3- 

 “Borrower 2B” shall have the meaning set forth in the introductory paragraph hereto,
together with its successors and permitted assigns. 
  
 “Breakage Costs” shall have the meaning set forth in Section 2.2.3(h) hereof. 
  
 “BSCMI” shall mean Bear, Stearns Commercial Mortgage, Inc., a New York corporation, and its successors in interest. 
  
 “Business Day” shall mean any day other than a Saturday,
Sunday or any other day on which national banks in New York, New York or the place of business of any Servicer are not open for business. 
  
 “Capital Expenditures” shall mean, for any period, the amount expended for items capitalized under GAAP and the Uniform System of
Accounts (including expenditures for building improvements or major repairs). 
  
 “Cash Management Account” shall have the meaning set forth in Section 2.6.2 hereof. 
  
 “Cash Management Agreement” shall mean that certain Cash Management Agreement, dated as of the Closing Date, by and among Borrower,
Operating Lessee, Manager, Agent and Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Casualty” shall have the meaning set forth in Section 6.2 hereof. 
  
 “Casualty Consultant” shall have the meaning set forth in Section 6.4(b)(iii) hereof. 
  
 “Casualty Retainage” shall have the meaning set forth in
Section 6.4(b)(iv) hereof. 
  
 “Closing
Date” shall mean the date of the funding of the Loan. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended, as it may be further amended from time to time, and any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant
thereto in temporary or final form. 
  
 “Collective
Group” shall have the meaning set forth in Section 10.23 hereof. 
  
 “Component” shall mean, individually, any one of Component A-1, Component A-2, Component B, Component C, Component D, Component E, Component F and Component G. 
  
 “Component A-1” shall mean that certain Component of the
Note relating to the Securities designated as Class A, which Component is described herein. 
  

 -4- 

 “Component A-2” shall mean that certain Component of the Note relating to the Securities
designated as Class A, which Component is described herein. 
  
 “Component B” shall mean that certain Component of the Note corresponding to the Securities designated as Class B. 
  
 “Component C” shall mean that certain Component of the Note corresponding to the Securities designated as Class C. 
  
 “Component D” shall mean that certain Component of the Note
corresponding to the Securities designated as Class D. 
  
 “Component E” shall mean that certain Component of the Note corresponding to the Securities designated as Class E. 
  
 “Component F” shall mean that certain Component of the Note corresponding to the Securities designated as Class F. 
  
 “Component G” shall mean that certain Component of the Note
corresponding to the Securities designated as Class G. 
  
 “Components” shall mean, collectively, Component A-1, Component A-2, Component B, Component C, Component D, Component E, Component F and Component G. 
  
 “Condemnation” shall mean a temporary or permanent taking by any Governmental Authority as the result or in
lieu or in anticipation of the exercise of the right of condemnation or eminent domain, of all or any part of any Individual Property, or any interest therein or right accruing thereto, including any right of access thereto or any change of grade
affecting such Individual Property or any part thereof. 
  
 “Condemnation Proceeds” shall have the meaning set forth in Section 6.4(b). 
  
 “Contribution Agreement” shall mean that certain Contribution Agreement, dated as of the Closing Date, among Borrower 1, Borrower 2A,
Borrower 2B and Operating Lessees. 
  
 “control”
shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management, policies or activities of a Person, whether through ownership of voting securities, by contract or otherwise. 
  
 “Covered Disclosure Information” shall have the meaning set
forth in Section 9.2(b) hereof. 
  
 “CSFB
Assets” shall mean, collectively, (a) that certain real property and hotel located in Chicago, Illinois known as Embassy Suites Chicago, and (b) that certain real property and hotel located in Houston, Texas known as Wyndham Greenspoint.

  

 -5- 

 “CSFB Assets Escrow Fund” shall have the meaning set forth in Section 7.6 hereof.

  
 “CSFB Assets Prepayment” shall have the
meaning set forth in Section 7.6 hereof. 
  
 “Debt” shall mean the outstanding principal amount set forth in, and evidenced by, this Agreement and the Note together with all interest accrued and unpaid thereon and all other sums (including, but not limited to, any
Spread Maintenance Payment, Prepayment Premium or Deleveraging Premium) due to Lender in respect of the Loan under the Note, this Agreement, the Mortgages or any other Loan Document. 
  
 “Debt Service” shall mean, with respect to any particular period of time, scheduled principal and interest
payments due under this Agreement and the Note. 
  
 “Debt
Service Coverage Ratio” shall mean a ratio for the applicable period in which: 
  

	 	(a)	the numerator is the Net Operating Income (excluding interest on credit accounts) for such period as set forth in the statements required hereunder, without deduction for (i) actual
management fees incurred in connection with the operation of the Properties, (ii) actual franchise fees incurred in connection with the operation of the Properties, or (iii) amounts paid to the Reserve Funds, less (A) management fees equal to the
greater of (1) assumed management fees of four percent (4%) of Gross Income from Operations or (2) the actual management fees incurred, and (B) with respect to those Properties operated pursuant to any Franchise Agreement, franchise fees equal to
the greater of (1) assumed franchise fees of four percent (4%) of Gross Income from Operations or (2) the actual franchise fees incurred, and (C) Replacement Reserve Fund contributions equal to the greater of (1) four percent (4%) of Gross Income
from Operations, (2) the actual percentage of Gross Income from Operations required to be expended under all Management and Franchise Agreements for the Properties or (3) Seven Million Dollars ($7,000,000) per Fiscal Year to be reduced on a pro-rata
basis as Properties may be released pursuant to the terms hereof; and 

  

	 	(b)	 the denominator is the greater of (i) the actual amount of principal and interest due and payable on the Loan, the Mezzanine Loan and the Junior Mezzanine Loan for
such period (net of any payments made to Borrower pursuant to any Interest Rate Cap Agreement or to Mezzanine Borrower pursuant to any Mezzanine Interest Rate Cap Agreement or Junior Mezzanine Borrower pursuant to any Junior Mezzanine Interest Rate
Cap Agreement) or (ii) an assumed aggregate debt service for the Loan, the Mezzanine Loan and the Junior Mezzanine Loan for such period calculated on the basis of a ten and one-half percent (10.50%) per annum 

  

 -6- 

	 	 
debt service constant for the Loan, the Mezzanine Loan and the Junior Mezzanine Loan. 

  
 “Debt Service Reserve Account” shall have the meaning set
forth in Section 7.5 hereof. 
  
 “Debt Service
Reserve Fund” shall have the meaning set forth in Section 7.5 hereof. 
  
 “Default” shall mean the occurrence of any event hereunder or under any other Loan Document which, but for the giving of notice or passage of time, or both, would be an Event of Default. 

 
 “Default Determination Ratio” shall mean a Debt Service
Coverage Ratio of 1.10 to 1.0. 
  
 “Default Rate”
shall mean, with respect to each Component of the Loan, a rate per annum equal to the lesser of (a) the maximum rate permitted by applicable law and (b) five percent (5%) above the Interest Rate for such Component. 
  
 “Deleveraging Premium” shall mean, with respect to a
Deleveraging Prepayment, a payment to Lender of an amount equal to (a) three and one-half percent (3.5%) of the outstanding principal amount of the Loan to be prepaid if such Deleveraging Prepayment occurs prior to the Prepayment Release Date, (b)
three percent (3%) of the outstanding principal amount of the Loan to be prepaid if such Deleveraging Prepayment occurs on or after the Prepayment Release Date through, and including, July 1, 2004, and (c) the applicable Prepayment Premium, if any,
if the Deleveraging Prepayment occurs on or after July 2, 2004. 
  
 “Deleveraging Prepayment” shall mean a one-time voluntary prepayment of the outstanding principal amount of the Loan made in accordance with Section 2.4.1 hereof by Borrower from the net proceeds of an initial public
offering of the stock of an Affiliate of Borrower, provided that (a) such proceeds shall have been used to prepay the Mezzanine Loan and the Junior Mezzanine Loan in full, and (b) such prepayment shall (i) be accompanied by a payment to
Lender of the Deleveraging Premium, and (ii) not result in the release of any Lien of any Mortgage on any Individual Property. 
  
 “Determination Date” shall mean the third (3rd) day of the Interest Period for which the Interest Rate is being determined. 
  
 “Disclosure Document” shall mean a prospectus, prospectus supplement, private placement memorandum, or similar offering memorandum or
offering circular, or such other information reasonably requested by Lender, in each case in preliminary or final form, used to offer Securities in connection with a Securitization. 
  
 “DSCR Determination Date” shall have the meaning set forth in Section 2.6.2(e) hereof. 

 

 -7- 

 “DSCR Excess Cash Sweep Event” shall have the meaning set forth in Section
2.6.2(e) hereof. 
  
 “Eligible Account” shall
mean a separate and identifiable account from all other funds held by the holding institution that is either (a) an account or accounts maintained with a federal or state-chartered depository institution or trust company which complies with the
definition of Eligible Institution or (b) a segregated trust account or accounts maintained with a federal or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository
institution or trust company, is subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus of at least Fifty Million and 00/100 Dollars ($50,000,000.00) and subject to supervision
or examination by federal and state authority. An Eligible Account will not be evidenced by a certificate of deposit, passbook or other instrument. 
  
 “Eligible Institution” shall mean a depository institution or trust company, the short term unsecured debt obligations or commercial
paper of which are rated at least “A-1+” by S&P, “P-1” by Moody’s and “F-1+” by Fitch in the case of accounts in which funds are held for thirty (30) days or less (or, in the case of accounts in which funds are
held for more than thirty (30) days, the long-term unsecured debt obligations of which are rated at least “AA” by Fitch and S&P and “Aa2” by Moody’s). 
  
 “Embargoed Person” shall have the meaning set forth in Section 4.1.35 hereof. 
  
 “Environmental Indemnity” shall mean that certain
Environmental Indemnification Agreement, dated as of the Closing Date, executed by Borrower and Guarantor in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time. 
  
 “ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and the rulings issued thereunder. 
  
 “Event of Default” shall have the meaning set forth in Section 8.1(a) hereof. 
  
 “Excess Cash Flow” shall mean all remaining amounts on
deposit in the Cash Management Account (regardless of whether such amounts are more or less than the operating rent due under each Operating Lease) after the payment of all escrows, reserves, Debt Service, expenses, debt service payments on each of
the Mezzanine Loan and the Junior Mezzanine Loan and other amounts required to be made in accordance with the Loan Documents. 
  
 “Excess Cash Sweep Event” shall mean (a) a DSCR Excess Cash Sweep Event, and/or (b) a Manager Excess Cash Sweep Event. 
  
 “Excess PIP Amount” shall have the meaning set forth in
Section 7.3.2(g) hereof. 
  
 “Exchange
Act” shall have the meaning set forth in Section 9.2(a) hereof. 
  

 -8- 

 “Extended Maturity Date” shall have the meaning set forth in Section 2.7 hereof.

  
 “Extension Option” shall have the meaning set
forth in Section 2.7 hereof. 
  
 “Extraordinary
Expense” shall have the meaning set forth in Section 5.1.11(e) hereof. 
  
 “FF&E Amount” shall have the meaning set forth in Section 7.3.1 hereof. 
  
 “Fiscal Year” shall mean each twelve (12) month period commencing on January 1 and ending on December 31 during each year of the term of
the Loan. 
  
 “Fitch” shall mean Fitch, Inc.

  
 “Floating Interest Rate” shall mean, for each
Component comprising the Loan, a fluctuating rate per annum equal to LIBOR plus the Spread applicable to such Component; provided, however, in no event shall LIBOR be deemed to be less than two percent (2.0%). 
  
 “Floating Interest Rate Loan” shall mean the Loan at such
time as the interest thereon accrues at a rate of interest based on the Floating Interest Rate. 
  
 “Foreign Lender” shall mean any Lender that is organized under the laws of a jurisdiction other than any state in the United States of
America. 
  
 “Foreign Taxes” shall have the
meaning set forth in Section 2.2.3(d) hereof. 
  
 “Franchise Agreement” shall mean, with respect to each Individual Property, that certain franchise agreement more specifically identified on Schedule V hereto, as the same may be amended or modified from time to time
in accordance with the terms and provisions of this Agreement, or, if the context requires, any Replacement Franchise Agreement executed in accordance with the terms and provisions of this Agreement. 
  
 “Franchisor” shall mean, with respect to any Individual
Property, the franchisor with respect thereto, as same is identified on Schedule V hereto, or, if the context requires, a Qualified Franchisor. 
  
 “Full Replacement Cost” shall have the meaning set forth in Section 6.1(a)(i) hereof. 
  
 “GAAP” shall mean generally accepted accounting principles
in the United States of America as of the date of the applicable financial report. 
  
 “Governmental Authority” shall mean any court, board, agency, commission, office or other authority of any nature whatsoever for any governmental unit (foreign, federal, state, county, district,
municipal, city or otherwise) whether now or hereafter in existence. 
  

 -9- 

 “Gross Income from Operations” shall mean all income and proceeds (whether in cash or on
credit, and computed on an accrual basis) received by Borrower, Operating Lessee or Manager for the use, occupancy or enjoyment of the Properties, or any part thereof, or received by Borrower, Operating Lessee or Manager for the sale of any goods,
services or other items sold on or provided from the Properties in the ordinary course of the Properties operation, including without limitation: (a) all income and proceeds received from rental of rooms, Leases and commercial space, meeting,
conference and/or banquet space within the Properties including net parking revenue and all Rent; (b) all income and proceeds received from food and beverage operations and from catering services conducted from the Properties even though rendered
outside of the Properties; (c) all income and proceeds from business interruption, rental interruption and use and occupancy insurance with respect to the operation of the Properties (after deducting therefrom all necessary costs and expenses
incurred in the adjustment or collection thereof); (d) all Awards for temporary use (after deducting therefrom all costs incurred in the adjustment or collection thereof and in Restoration of the Properties); (e) all income and proceeds from
judgments, settlements and other resolutions of disputes with respect to matters which would be includable in this definition of “Gross Income from Operations” if received in the ordinary course of the Properties operation (after deducting
therefrom all necessary costs and expenses incurred in the adjustment or collection thereof); and (f) interest on credit accounts, rent concessions or credits, and other required pass-throughs and any interest to which Borrower is entitled on
Reserve Funds; but excluding, (1) gross receipts received by lessees (other than any Operating Lessee), licensees or concessionaires of the Properties; (2) consideration received at the Properties for hotel accommodations, goods and services
to be provided at other hotels, although arranged by, for or on behalf of Borrower, Operating Lessee or Manager; (3) income and proceeds from the sale or other disposition of goods, capital assets and other items not in the ordinary course of the
Properties operation; (4) federal, state and municipal excise, sales and use taxes collected directly from patrons or guests of the Properties as a part of or based on the sales price of any goods, services or other items, such as gross receipts,
room, admission, cabaret or equivalent taxes; (5) Awards (except to the extent provided in clause (d) above); (6) refunds of amounts not included in Operating Expenses at any time; (7) uncollectible accounts; (8) gratuities collected by the
Properties employees; (9) the proceeds of any financing; (10) other income or proceeds resulting other than from the use or occupancy of the Properties, or any part thereof, or other than from the sale of goods, services or other items sold on or
provided from the Properties in the ordinary course of business; (11) any credits or refunds made to customers, guests or patrons in the form of allowances or adjustments to previously recorded revenues; (12) payments made to Borrower, Mezzanine
Borrower and Junior Mezzanine Borrower pursuant to their respective Interest Rate Cap Agreements; (13) tax refunds; (14) amounts collected as security deposits from any tenants under Leases except to the extent such security deposits are actually
applied to amounts owed by such tenants pursuant to the terms of the applicable Leases; and (15) rent or other payments due under the Operating Lease to the extent they represent income already included as “Gross Income from Operations”
hereunder. 
  
 “Ground Lease” shall mean,
collectively, those certain leases more particularly described on Schedule IX hereto. 
  
 “Ground Lease Reserve Account” shall have the meaning set forth in Section 7.4.1 hereof. 
  

 -10- 

 “Ground Lease Reserve Fund” shall have the meaning set forth in Section 7.4.1
hereof. 
  
 “Ground Rent” shall have the meaning
set forth in Section 7.4.1 hereof. 
  
 “Guarantor” shall mean Hotel Partners, together with their successors and permitted assigns. 
  
 “Guaranty” shall mean that certain Guaranty Agreement, dated as of the Closing Date, executed and delivered by Guarantor in connection
with the Loan to and for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Hotel Fund” shall mean, individually or collectively as the context requires, Westbrook Real Estate Fund IV, L.P. and Westbrook Real
Estate Co-Investment Partnership IV, L.P. 
  
 “Hotel
Partners” shall mean, individually or collectively as the context requires, (a) Hotel Partners 1 and (b) Hotel Partners 2. 
  
 “Hotel Partners 1” shall mean Westbrook Hotel Partners IV, L.L.C., a Delaware limited liability company. 
  
 “Hotel Partners 2” shall mean Westbrook Hotel Co-Investment
Partners IV, L.L.C., a Delaware limited liability company. 
  
 “Hyatt Property” shall mean that certain Individual Property known as Hyatt Newporter, located in Newport Beach, California. 
  
 “Improvements” shall have the meaning set forth in the granting clause of the related Mortgage with respect to each Individual Property.

  
 “Indebtedness” of a Person, at a particular
date, means the sum (without duplication) at such date of (a) all indebtedness or liability of such Person (including, without limitation, amounts for borrowed money and indebtedness in the form of mezzanine debt or preferred equity); (b)
obligations evidenced by bonds, debentures, notes, or other similar instruments; (c) obligations for the deferred purchase price of property or services (including trade obligations); (d) obligations under letters of credit; (e) obligations under
acceptance facilities; (f) all guaranties, endorsements (other than for collection or deposit in the ordinary course of business) and other contingent obligations to purchase, to provide funds for payment, to supply funds, to invest in any Person or
entity, or otherwise to assure a creditor against loss; and (g) obligations secured by any Liens, whether or not the obligations have been assumed (other than the Permitted Encumbrances). 
  
 “Indemnified Person” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “Indemnifying Person” shall mean each of Borrower, Principal
and Guarantor. 
  

 -11- 

 “Independent Director” shall mean a director of any Special Purpose Entity who is not at
the time of initial appointment, or at any time while serving as a director of any Special Purpose Entity, and has not been at any time during the preceding five (5) years: (a) a stockholder, direct or indirect owner, director (with the exception of
serving as the Independent Director of such Special Purpose Entity), officer, employee, partner, member, attorney or counsel of any Special Purpose Entity (unless such natural person is a director provided by a nationally recognized company that
provides professional independent managers and which also provides other corporate services in the ordinary course of business, in which case such Person may receive reasonable fees for serving as director of any Special Purpose Entity); (b) a
creditor, customer, supplier or other Person who derives any of its purchases or revenues from its activities with such Special Purpose Entity or any Affiliate thereof; (c) a Person controlling or under common control with any such stockholder,
director, officer, employee, partner, member, creditor, customer, supplier or other Person; or (d) a member of the immediate family of any such stockholder, director, officer, employee, partner, member, creditor, customer, supplier or other person.
A natural person who satisfies the foregoing definition other than subparagraph (b) shall not be disqualified from serving as an Independent Director of any Special Purpose Entity if such individual is an independent director provided by a
nationally recognized company that provides professional independent directors and that also provides other corporate services in the ordinary course of its business. As used in this definition, the term “control” means the possession,
directly or indirectly, of the power to direct or cause the direction of management, policies or activities of a Person, whether through ownership of voting securities, by contract or otherwise. 
  
 “Individual Borrower” shall have the meaning set forth in
the introductory paragraph hereto, together with its successors and permitted assigns. 
  
 “Individual Property” shall mean each parcel of real property, the Improvements thereon and all personal property owned by Borrower and/or Operating Lessee and encumbered by a Mortgage, together with
all rights pertaining to such property and Improvements, as more particularly described in the Granting Clauses of each Mortgage and referred to therein as the “Property.” 
  
 “Initial Maturity Date” shall mean January 1, 2006. 
  
 “Insolvency Opinion” shall mean that certain
non-consolidation opinion letter dated the Closing Date delivered by Cravath, Swaine & Moore in connection with the Loan. 
  
 “Insurance Premiums” shall have the meaning set forth in Section 6.1(b) hereof. 
  
 “Insurance Proceeds” shall have the meaning set forth in
Section 6.4(b) hereof. 
  
 “Interest
Period” shall mean, in connection with the calculation of interest accrued with respect to any specified Payment Date, the period commencing on the first day of the prior calendar month and ending on the last day of such prior calendar
month; provided, however, the Interest Period for the Payment Date relating to January, 2003 shall be the period commencing on the Closing Date, and ending on December 31, 2002. 
  

 -12- 

 “Interest Rate” shall mean the rate at which the outstanding principal amount of each of
the Components comprising the Loan bears interest from time to time in accordance with Section 2.2.3 hereof. 
  
 “Interest Rate Cap Agreement” shall mean, collectively, one or more interest rate protection agreements (together with the confirmation
and schedules relating thereto) reasonably acceptable to Lender, between an Acceptable Counterparty and Borrower obtained by Borrower as and when required pursuant to Section 2.2.7 hereof. After delivery of a Replacement Interest Rate Cap
Agreement to Lender, the term “Interest Rate Cap Agreement” shall be deemed to mean such Replacement Interest Rate Cap Agreement and such Replacement Interest Rate Cap Agreement shall be subject to all requirements applicable to the
Interest Rate Cap Agreement. 
  
 “Interest Rate
Creep” shall mean, as of any date of determination, the positive difference, if any, between (x) the weighted average of the Spreads of the Components as of such date of determination weighted on the basis of the outstanding principal
balances of such Components as of such date of determination and (y) the weighted average of the Spreads of the Components on the Closing Date, weighted on the basis of the outstanding principal balances of such Components on the Closing Date.

  
 “Junior Mezzanine Borrower” shall mean,
collectively, WHP Junior Mezz Borrower-1, L.L.C. and WHP Junior Mezz Borrower-2, L.L.C., each a Delaware limited liability company, together with their successors and permitted assigns. 
  
 “Junior Mezzanine Debt Service Account” shall have the meaning ascribed to such term in the Junior
Mezzanine Loan Documents. 
  
 “Junior Mezzanine Interest
Rate Cap Agreement” shall have the meaning set forth in the Junior Mezzanine Loan Documents. 
  
 “Junior Mezzanine Lender” shall mean CTMPII FC Westbrook (GCM), a Cayman Islands exempted company, together with its successors and
permitted assigns. 
  
 “Junior Mezzanine Loan”
shall mean that certain loan made as of the Closing Date by Junior Mezzanine Lender to Junior Mezzanine Borrower in the original principal amount of Forty-Four Million Dollars ($44,000,000). 
  
 “Junior Mezzanine Loan Default” shall mean an “Event of
Default” under the Junior Mezzanine Loan. 
  
 “Junior
Mezzanine Loan Documents” shall mean all documents evidencing the Junior Mezzanine Loan and all documents executed and/or delivered in connection therewith. 
  
 “Junior Mezzanine Release Amount” shall mean the “Adjusted Release Amount” as defined in the
Junior Mezzanine Loan Documents. 
  
 “Lease”
shall mean any lease, sublease or subsublease, letting, license, concession or other agreement (whether written or oral and whether now or hereafter in effect) 

  

 -13- 

 
pursuant to which any Person is granted a possessory interest in, or right to use or occupy all or any portion of any space in any Individual Property, and
every modification, amendment or other agreement relating to such lease, sublease, subsublease, or other agreement entered into in connection with such lease, sublease, subsublease, or other agreement and every guarantee of the performance and
observance of the covenants, conditions and agreements to be performed and observed by the other party thereto. 
  
 “Legal Requirements” shall mean, with respect to each Individual Property, all federal, state, county, municipal and other governmental
statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities affecting Borrower, Operating Lessee, the Collateral, such Individual Property or any part thereof, or the construction, use,
alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force, and all permits, licenses and authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances
contained in any instruments, either of record or known to Borrower, at any time in force affecting Borrower, Operating Lessee, the Collateral, such Individual Property or any part thereof, including, without limitation, any which may (a) require
repairs, modifications or alterations in or to such Individual Property or any part thereof, or (b) in any way limit the use and enjoyment thereof. 
  
 “Lender” shall have the meaning set forth in the introductory paragraph hereto, together with its successors and assigns. 
  
 “Letter of Credit” shall mean an irrevocable, unconditional,
transferable, clean sight draft letter of credit (either an evergreen letter of credit or a letter of credit which does not expire until at least two (2) Business Days after the Maturity Date or such other date reasonably acceptable to Lender) in
favor of Lender and entitling Lender to draw thereon based solely on a statement executed by an officer of Lender stating that it has the right to draw thereon, and issued by a domestic Approved Bank or the U.S. agency or branch of a foreign
Approved Bank, or if there are no domestic Approved Banks or U.S. agencies or branches of a foreign Approved Bank then issuing letters of credit, then such letter of credit may be issued by a domestic bank, the long term unsecured debt rating of
which is the highest such rating then given by the Rating Agency or Rating Agencies, as applicable, to a domestic commercial bank. 
  
 “Liabilities” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “LIBOR” shall mean, with respect to each Interest Period,
the rate determined by Lender to be (i) the per annum rate for deposits in U.S. dollars for a period equal to the applicable Interest Period, which appears on the Telerate Access Service Page 3750 (or any successor thereto) as the London Interbank
Offering Rate as of 11:00 a.m., London time, on the day that is two (2) London Business Days prior to that respective Interest Period’s Determination Date (rounded upwards, if necessary, to the nearest 1/1000 of 1%); (ii) if such rate does not
appear on said Telerate Access Service Page, the arithmetic mean (rounded as aforesaid) of the offered quotations of rates obtained by Lender from the Reference Banks for deposits in U.S. dollars for a period equal to the applicable Interest Period
to prime banks in the London interbank market as of approximately 11:00 a.m., London time, on the day that is two (2) London Business Days prior to that Determination Date and in an amount that is representative for a single transaction in the
relevant market at the relevant time; or (iii) if fewer than two (2) 

  

 -14- 

 
Reference Banks provide Lender with such quotations, the rate per annum which Lender determines to be the arithmetic mean (rounded as aforesaid) of the
offered quotations of rates which major banks in New York, New York selected by Lender are quoting at approximately 11:00 a.m., New York City time, on the Determination Date for loans in U.S. dollars to leading European banks for a period equal to
the applicable Interest Period in amounts of not less than U.S. $1,000,000.00. Lender’s determination of LIBOR shall be binding and conclusive on Borrower absent manifest error. LIBOR may or may not be the lowest rate based upon the market for
U.S. Dollar deposits in the London Interbank Eurodollar Market at which Lender prices loans on the date which LIBOR is determined by Lender as set forth above. 
  

“Licenses” shall have the meaning set forth in Section 4.1.22 hereof. 
  
 “Lien” shall mean, with respect to each Individual Property,
any mortgage, deed of trust, lien, pledge, hypothecation, assignment, security interest, or any other encumbrance or charge of or on or affecting Borrower, Operating Lessee, the Collateral, the related Individual Property, any portion thereof or any
interest therein, including, without limitation, any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, the filing of any financing statement, and
mechanic’s, materialmen’s and other similar liens and encumbrances. 
  
 “Limited Guarantor” shall mean Hotel Fund, together with their successors and permitted assigns. 
  
 “Limited Guaranty” shall mean that certain Limited Guaranty Agreement, dated as of the Closing Date, executed and delivered by Limited
Guarantor in connection with the Loan to and for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Liquidity Reserve Fund” shall have the meaning set forth in Section 7.7 hereof. 
  
 “Liquor License Agreement” shall mean, with respect to each
Individual Property listed on Schedule VIII, that certain Alcoholic Beverage Management Agreement, dated as of the Closing Date, between the applicable Individual Borrower, as owner, and the holder of the applicable liquor license, as
licensee. 
  
 “Loan” shall mean the Components
comprising the loan made by Lender to Borrower pursuant to the Original Loan Agreement, as amended and restated pursuant to this Agreement. 
  
 “Loan Documents” shall mean, collectively, this Agreement, the Note, the Mortgages, the Assignments of Leases, the Environmental
Indemnity, the O&M Agreements, the Assignments of Management Agreements, the Guaranty, the Limited Guaranty, the Pledge Agreements, the Cash Management Agreement, the Lockbox Agreements, the Interest Rate Cap Agreement, the Assignment of
Interest Rate Cap Agreement, the Contribution Agreement and all other documents executed and/or delivered in connection with the Loan. 
  
 “Lockbox Account” shall have the meaning set forth in Section 2.6.1 hereof. 
  

 -15- 

 “Lockbox Agreement” shall mean, with respect to each Lockbox Account, that certain
lockbox and blocked account agreement, dated as of the Closing Date, among the applicable Individual Borrower, Lender and the applicable Lockbox Bank, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to
time, relating to funds deposited in the related Lockbox Account. 
  
 “Lockbox Bank” shall mean, with respect to each Lockbox Account, that certain Eligible Institution in which such Lockbox Account is maintained pursuant to the related Lockbox Agreement, or any successor or permitted assigns
thereof. 
  
 “Lockbox Properties” shall mean,
each of the Individual Properties identified on Schedule II attached hereto. 
  
 “London Business Day” shall mean any day other than a Saturday, Sunday or any other day on which commercial banks in London, England are not open for business. 
  
 “Major Lease” shall mean the leases for which estoppels are
delivered under Section 3.1.11 hereof or any replacement lease for such space. 
  
 “Management Agreement” shall mean, with respect to each Individual Property, the management agreement entered into by and between the applicable Individual Borrower, the applicable Operating Lessee
and the applicable Manager, pursuant to which Manager is to provide management and other services with respect to such Individual Property as each such agreement is described on Schedule VI hereto, or, if the context requires, the Replacement
Management Agreement. 
  
 “Manager” shall mean,
with respect to each Individual Property, the manager under the applicable Management Agreement, or, if the context requires, any Qualified Manager who is managing the Individual Property in accordance with the terms and provisions of this
Agreement. 
  
 “Manager Accounts” shall mean
those certain operating and reserve accounts maintained by each of the Managers of the Marriott Properties and the Hyatt Property pursuant to and in accordance with each of the related Management Agreements, which accounts are more particularly
described on Schedule XIII hereto. 
  
 “Manager
Excess Cash Sweep Event” shall have the meaning set forth in Section 9.4(b) hereof. 
  
 “Marriott Properties” shall mean each of the Troy Property, the Philadelphia West Property and the Tyson’s Corner Property.

  
 “Material Adverse Effect” shall mean any
change or effect that would reasonably be expected to have a material and adverse effect on the business, results, operations or value of Borrower, the Collateral or the Properties taken as a whole. 
  
 “Maturity Date” shall mean the Initial Maturity Date or,
following an exercise by Borrower of one (1) or more of the Extension Options described in Section 2.7 hereof, the 

  

 -16- 

 
Extended Maturity Date, or such other date on which the final payment of principal of the Note becomes due and payable as therein or herein provided, whether
at such stated maturity date, by declaration of acceleration, or otherwise. 
  
 “Maximum Legal Rate” shall mean the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged or received on the indebtedness
evidenced by the Note and as provided for herein or the other Loan Documents, under the laws of such state or states whose laws are held by any court of competent jurisdiction to govern the interest rate provisions of the Loan. 
  
 “Mezzanine Borrower” shall mean, collectively, WHP Mezz
Borrower-1, L.L.C. and WHP Mezz Borrower-2, L.L.C., each a Delaware limited liability company, together with their successors and permitted assigns. 
  
 “Mezzanine Debt Service Account” shall have the meaning ascribed to such term in the Mezzanine Loan Documents. 
  
 “Mezzanine Interest Rate Cap Agreement” shall have the
meaning set forth in the Mezzanine Loan Documents. 
  
 “Mezzanine Lender” shall mean Bear Stearns Commercial Mortgage, Inc., a New York corporation, together with its successors and permitted assigns. 
  
 “Mezzanine Loan” shall mean that certain loan made as of the Closing Date by Mezzanine Lender to Mezzanine
Borrower in the original principal amount of Ten Million Five Hundred Thousand Dollars ($10,500,000). 
  
 “Mezzanine Loan Default” shall mean an “Event of Default” under the Mezzanine Loan. 
  
 “Mezzanine Loan Documents” shall mean all documents
evidencing the Mezzanine Loan and all documents executed and/or delivered in connection therewith. 
  
 “Mezzanine Release Amount” shall mean the “Adjusted Release Amount” as defined in the Mezzanine Loan Documents. 
  
 “Monthly Debt Service Payment Amount” shall mean an amount
equal to the sum of (i) the aggregate amount of interest which is due on each of the Components of the Loan for the immediately preceding Interest Period plus (ii) the payment of principal for such Interest Period as set forth on Schedule
VII, as such amount may be recalculated in accordance with Section 2.4.1, Section 2.4.2 and Section 7.6 hereof. 
  
 “Moody’s” shall mean Moody’s Investors Service, Inc. 
  
 “Mortgage” shall mean, with respect to each Individual Property, that certain first priority Mortgage (or
Deed of Trust) and Security Agreement, dated as of the Closing Date, executed and delivered by the applicable Individual Borrower and the related Operating Lessee 

  

 -17- 

 
to Lender as security for the Loan and encumbering such Individual Property, as the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time. 
  
 “Net Cash Flow”
shall mean, for any period, the amount obtained by subtracting Operating Expenses and Capital Expenditures for such period from Gross Income from Operations for such period. 
  
 “Net Operating Income” shall mean the amount obtained by subtracting Operating Expenses from Gross Income
from Operations. 
  
 “Net Proceeds” shall have
the meaning set forth in Section 6.4(b) hereof. 
  
 “Net Proceeds Deficiency” shall have the meaning set forth in Section 6.4(b)(vi) hereof. 
  
 “New Note” shall have the meaning set forth in Section 9.1.4 hereof. 
  
 “Note” shall mean that certain Consolidated, Amended and Restated Note, dated as of the Closing Date, in
the principal amount of Two Hundred Twenty-Five Million Dollars ($225,000,000), made by Borrower in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “O&M Agreement” shall mean, with respect to each
Individual Property (other than the Troy Property and the Philadelphia West Property), that certain Operations and Maintenance Agreement, dated as of the Closing Date, among the applicable Individual Borrower, the related Operating Lessee and Lender
given in connection with the Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Officer’s Certificate” shall mean a certificate delivered to Lender by Borrower which is signed by an authorized officer of the
general partner or managing member of Borrower. 
  
 “Operating Expenses” shall mean the sum of all costs and expenses of operating, maintaining, directing, managing and supervising the Properties (excluding (i) depreciation and amortization, (ii) any Debt Service in
connection with the Loan, (iii) any debt service in connection with the Mezzanine Loan and the Junior Mezzanine Loan, (iv) any Capital Expenditures in connection with the Properties, or (v) the costs of any other things specified to be done or
provided at Borrower’s, Operating Lessee’s or Manager’s sole expense), incurred by Borrower, Operating Lessee or Manager pursuant to the Management Agreement, or as otherwise specifically provided therein, which are properly
attributable to the period under consideration under Borrower’s system of accounting, including without limitation: (a) the cost of all food and beverages sold or consumed and of all necessary chinaware, glassware, linens, flatware, uniforms,
utensils and other items of a similar nature, including such items bearing the name or identifying characteristics of the hotels as Borrower, Operating Lessee and/or Manager shall reasonably consider appropriate (“Operating
Equipment”) and paper supplies, cleaning materials and similar consumable items (“Operating Supplies”) placed in use (other than reserve stocks thereof in storerooms). Operating Equipment and Operating Supplies shall be

  

 -18- 

 
considered to have been placed in use when they are transferred from the storerooms of the Properties to the appropriate operating departments; (b) salaries
and wages of personnel of the Properties (regardless of whether such personnel are employees of Borrower, Operating Lessee or any Manager), including costs of payroll taxes and employee benefits (which benefits may include, without limitation, a
pension plan, medical insurance, life insurance, travel accident insurance and an executive bonus program) and the costs of moving employees of the Properties and their families and their belongings to the area in which the Properties are located at
the commencement of their employment at the Properties and all other expenses not otherwise specifically referred to in this definition which are referred to as “Administrative and General Expenses” in the Uniform System of Accounts; (c)
the cost of all other goods and services obtained by Borrower, Operating Lessee or Manager in connection with its operation of the Properties including, without limitation, heat and utilities, office supplies and all services performed by third
parties, including leasing expenses in connection with telephone and data processing equipment, and all existing and any future installations necessary for the operation of the Improvements for hotel purposes (including, without limitation, heating,
lighting, sanitary equipment, air conditioning, laundry, refrigerating, built-in kitchen equipment, telephone equipment, communications systems, computer equipment and elevators), Operating Equipment and existing and any future furniture,
furnishings, wall coverings, fixtures and hotel equipment necessary for the operation of the building for hotel purposes which shall include all equipment required for the operation of kitchens, bars, laundries, (if any) and dry cleaning facilities
(if any), office equipment, cleaning and engineering equipment and vehicles; (d) the cost of repairs to and maintenance of the Properties other than of a capital nature; (e) insurance premiums for general liability insurance, workers’
compensation insurance, terrorism insurance or insurance required by similar employee benefits acts and such business interruption or other insurance as may be provided for protection against claims, liabilities and losses arising from the operation
of the Properties (as distinguished from any property damage insurance on the Properties building or its contents) and losses incurred on any self-insured risks of the foregoing types. Premiums on policies for more than one year will be pro rated
over the period of insurance and premiums under blanket policies will be allocated among properties covered; (f) all Taxes and Other Charges (other than federal, state or local income taxes and franchise taxes or the equivalent) payable by or
assessed against Borrower, Operating Lessee or Manager with respect to the operation of the Properties; (g) legal fees and fees of any firm of independent certified public accounts designated from time to time by Borrower (the “Independent
CPA”) for services directly related to the operation of the Properties; (h) the costs and expenses of technical consultants and specialized operational experts for specialized services in connection with non-recurring work on operational,
legal, functional, decorating, design or construction problems and activities, including the reasonable fees of any Affiliated Manager or its Affiliates in connection therewith; (i) all expenses for marketing and advertising for the Properties and
all expenses of sales promotion and public relations activities; (j) the cost of any reservations system, any accounting services or other group benefits, programs or services provided to the Properties; (k) the cost associated with any retail
Leases; (l) any management fees, basic and incentive fees or other fees and reimbursables paid or payable to Manager under each Management Agreement; (m) any franchise fees or other fees and reimbursables paid or payable to Franchisor under each
Franchise Agreement; and (n) all costs and expenses relating directly to owning, maintaining, conducting and supervising the operation of the Properties to the extent such costs and expenses are not included above. 
  

 -19- 

 “Operating Lease” shall mean, with respect to each Individual Property, that certain
Lease Agreement, dated as of the Closing Date, between the applicable Individual Borrower, as lessor, and the applicable Operating Lessee, as lessee, and further, with respect to the Individual Property located in Huntington, New York, that certain
Lease of Personal Property and Equipment, dated as of the Closing Date, between the related Operating Lessees. 
  
 “Operating Lessee” shall mean, individually or collectively as the context requires, WHP Hotel Lessee-1, Inc., WHP Hotel Lessee-2A, Inc.
and WHP Hotel Lessee-2, Inc., each a Delaware corporation, and WHP PPE Owner-1, L.L.C., a Delaware limited liability company, together with their successors and permitted assigns. 
  
 “Operating Rent Credits” shall mean any of those certain “Excess Monthly Deposit Credits” as
defined in the Operating Leases. 
  
 “Original Loan
Agreement” shall have the meaning set forth in the Recitals to this Agreement. 
  
 “Other Charges” shall mean all ground rents, maintenance charges, impositions other than Taxes, and any other charges, including, without limitation, vault charges and license fees for the use of
vaults, chutes and similar areas adjoining any Individual Property, now or hereafter levied or assessed or imposed against such Individual Property or any part thereof. 
  
 “Other Obligations” shall have the meaning as set forth in the Mortgages. 
  
 “Out Parcel” shall mean, with respect to the Tyson’s
Corner Property, the land and improvements or any land not improved with buildings or other structures subject to the purchase option and obligation to purchase contained in Article 19 of that certain Ground Lease Agreement, dated September 10,
1999, between Interstone PAH/Partners, L.P. and 8022 Leesburg Pike, LLC, a memo of which was recorded in the Land Records of Fairfax County, Virginia, on September 23, 1999 at Deed Book 11097, page 1081. 
  
 “Payment Date” shall mean the first day of every month
during the term of the Loan, until and including the Maturity Date. 
  
 “Permitted Encumbrances” shall mean, with respect to an Individual Property, collectively, (a) the Liens and security interests created by the Loan Documents, the Mezzanine Loan Documents and the Junior Mezzanine Loan
Documents, (b) all Liens, encumbrances and other matters disclosed in the Title Insurance Policies or “insured over” or “insured around” to the reasonable satisfaction of Lender, as each relate to such Individual Property or any
part thereof, (c) carriers’, warehousemen’s, mechanic’s, materialmen’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue or delinquent,
or are being contested pursuant to Section 5.1.2 hereof, (d) Liens, if any, for Taxes imposed by any Governmental Authority or for Other Charges not yet due or delinquent, or being contested pursuant to Section 5.1.2 hereof or
“insured over” or “insured around” to the reasonable satisfaction of Lender in the Title Insurance Policies, (e) utility and access easements of record which do not materially and adversely affect the value or use or operation of
such Individual Property, and (f) such other title and survey exceptions as Lender has approved or may approve in writing in Lender’s sole discretion, which Permitted 

  

 -20- 

 
Encumbrances in the aggregate do not materially adversely affect the value or use of such Individual Property or Borrower’s ability to repay the Loan.

  
 “Permitted Investments” shall have the
meaning set forth in the Cash Management Agreement. 
  
 “Permitted Transfer” means any of the following: (a) any transfer, directly as a result of the death of a natural person, of stock, membership interests or other ownership interests previously held by the decedent in
question to the Person or Persons lawfully entitled thereto and (b) any transfer, directly as a result of the legal incapacity of a natural person, of stock, membership interests or other ownership interests previously held by such natural person to
the Person or Persons lawfully entitled thereto. 
  
 “Person” shall mean any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association, any federal, state, county or municipal government or any bureau, department
or agency thereof and any fiduciary acting in such capacity on behalf of any of the foregoing. 
  
 “Personal Property” shall have the meaning set forth in the granting clause of the Mortgage with respect to each Individual Property. 
  
 “Philadelphia West Property” shall mean that certain Individual Property known as Marriott Philadelphia
West, located in Conshohocken, Pennsylvania. 
  
 “Physical
Conditions Report” shall mean, with respect to each Individual Property a structural engineering report prepared by a company satisfactory to Lender regarding the physical condition of such Individual Property, satisfactory in form and
substance to Lender in its sole discretion, which report shall, among other things, (a) confirm that such Individual Property and its use complies, in all material respects, with all applicable Legal Requirements (including, without limitation,
zoning, subdivision and building laws) and (b) include a copy of a final certificate of occupancy with respect to all Improvements on such Individual Property. 
  

“PIP Completion Amount” shall have the meaning set forth in Section 7.3.2(g) hereof. 
  
 “PIP Requirements” shall mean, collectively, with respect to
any Individual Property, the obligation of Borrower and/or Operating Lessee to comply with any property improvement program that may be mandated or otherwise required under any Management Agreement, Franchise Agreement or other applicable licensing
agreement. 
  
 “Pledge Agreement” shall have the
meaning set forth in the Recitals to this Agreement. 
  
 “Pledged Lessee Interests” shall mean one hundred percent (100%) of Borrower’s legal and beneficial ownership interests in each Operating Lessee. 
  
 “Pledgor” shall have the meaning set forth in the Pledge Agreements. 
  

 -21- 

 “Policies” shall have the meaning set forth in Section 6.1(b) hereof. 

 
 “Policy” shall have the meaning set forth in Section
6.1(b) hereof. 
  
 “Prepayment Premium” shall
mean an amount equal to (a) two and one-half percent (2.5%) of the outstanding principal balance of the Loan to be prepaid if the prepayment occurs (i) prior to the Prepayment Release Date or (ii) on or after the Prepayment Release Date through, and
including, July 1, 2004, (b) two percent (2.0%) of the outstanding principal balance of the Loan to be prepaid if the prepayment occurs on or after July 2, 2004 through, and including, January 1, 2005, (c) one and one-half percent (1.50%) of the
outstanding principal balance of the Loan to be prepaid if the prepayment occurs on or after January 2, 2005 through, and including, July 1, 2005, (d) one percent (1.0%) of the outstanding principal balance of the Loan to be prepaid if the
prepayment occurs on or after July 2, 2005 to, but not including, January 1, 2006, and (e) zero if the prepayment occurs on or after January 1, 2006. 
  
 “Prepayment Release Date” shall mean January 2, 2004. 
  
 “Prime Rate” shall mean the annual rate of interest publicly announced by Citibank, N.A. in New York, New
York, as its base rate, as such rate shall change from time to time. If Citibank, N.A. ceases to announce a base rate, Prime Rate shall mean the rate of interest published in The Wall Street Journal from time to time as the “Prime
Rate.” If The Wall Street Journal ceases to publish the “Prime Rate,” the Lender shall select an equivalent publication that publishes such “Prime Rate,” and if such “Prime Rates” are no longer generally
published or are limited, regulated or administered by a governmental or quasi-governmental body, then Lender shall select a comparable interest rate index. 
  
 “Prime Rate Loan” shall mean the Loan at such time as interest thereon accrues at a rate of interest based upon the Prime Rate plus the
Prime Rate Spread. 
  
 “Prime Rate Spread” shall
mean, with respect to each Component comprising the Loan, the difference (expressed as the number of basis points) between (a) LIBOR plus the Spread for such Component on the date LIBOR was last applicable to the Loan and (b) the Prime Rate on the
date that LIBOR was last applicable to the Loan; provided, however, in no event shall such difference be a negative number. 
  
 “Principal” shall mean the Special Purpose Entity limited liability company that is the general partner of Borrower 1. 
  
 “Properties” shall mean, collectively, each and every
Individual Property which is subject to the terms of this Agreement. 
  
 “Provided Information” shall mean any and all financial and other information provided at any time by, or on behalf of, any Indemnifying Person with respect to any Individual Property, the Collateral, Borrower, Principal,
Mezzanine Borrower, Junior Mezzanine Borrower, Guarantor, Limited Guarantor and/or Manager. 
  

 -22- 

 “Purchase Agreement” shall mean that certain Purchase and Sale Agreement, dated as of
September 22, 2002, by and among Wyndham International, Inc., the Transferors listed therein, Hotel Partners 1 and Hotel Partners 2. 
  
 “Qualified Franchisor” shall mean either (a) Franchisor; or (b) either (i) a nationally recognized franchisor (which may be an Affiliate
of Borrower) in operation for not less than fifteen (15) years and licensing at least thirty-five (35) full-service hotels with a minimum of ten thousand (10,000) rooms, or (ii) a reputable and experienced franchisor (which may be an Affiliate of
Borrower) possessing experience in flagging hotel properties similar in size, scope, use and value as the Properties, as approved by Lender, which approval shall not be unreasonably withheld if the principals controlling such franchisor have
experience levels substantially similar to or greater than the experience levels as of the Closing Date of the principals controlling the Franchisor being replaced, provided, that, in the case of either (i) or (ii), Borrower shall have
obtained (A) prior written confirmation from the applicable Rating Agencies that licensing of the Properties by such Person will not cause a downgrade, withdrawal or qualification of the then current ratings of the Securities or any class thereof
and (B) if such Person is an Affiliate of Borrower, an Additional Insolvency Opinion. 
  
 “Qualified Manager” shall mean either (a) Manager; or (b) either (i) a nationally recognized management organization (which may be an Affiliate of Borrower) in operation for not less than fifteen (15)
years and managing at least thirty-five (35) full-service hotels with a minimum of ten thousand (10,000) rooms, or (ii) a reputable and experienced management organization (which may be an Affiliate of Borrower) possessing experience in managing
properties similar in size, scope, use and value as the Properties, as approved by Lender, which approval shall not be unreasonably withheld if the principals controlling such management organization have experience levels substantially similar to
or greater than the experience levels as of the Closing Date of the principals controlling the Manager being replaced, provided, that, in the case of either (i) or (ii), Borrower shall have obtained (A) prior written confirmation from the
applicable Rating Agencies that management of the Properties by such Person will not cause a downgrade, withdrawal or qualification of the then current ratings of the Securities or any class thereof and (B) if such Person is an Affiliate of
Borrower, an Additional Insolvency Opinion. 
  
 “Rating
Agencies” shall mean each of S&P, Moody’s and Fitch, or any other nationally recognized statistical rating agency which has been approved by Lender. 
  
 “Reference Banks” shall mean four (4) major banks in the London interbank market selected by Lender.

  
 “Related Entities” shall have the meaning set
forth in Section 5.2.10(e)(v) hereof. 
  
 “Release
Amount” shall mean for an Individual Property the amount set forth on Schedule I hereto, as the same may be reduced pursuant to Section 2.4.2. 
  
 “Release Hotels” shall mean up to three (3) of the following Individual Properties: (a) Radisson Ft.
Magruder; (b) Radisson-Englewood; (c) Hilton DelMar; and (d) Valley River Inn. 
  

 -23- 

 “Rents” shall mean, with respect to each Individual Property, all rents, rent
equivalents, moneys payable as damages or in lieu of rent or rent equivalents, royalties (including, without limitation, all oil and gas or other mineral royalties and bonuses), income, receivables, receipts, revenues, deposits (including, without
limitation, security, utility and other deposits), accounts, cash, issues, profits, charges for services rendered, and other consideration of whatever form or nature received by or paid to or for the account of or benefit of Borrower or its agents
or employees from any and all sources arising from or attributable to the Individual Property, and proceeds, if any, from business interruption or other loss of income or insurance, including, without limitation, all hotel receipts, revenues and
credit card receipts collected from guest rooms, restaurants, bars, meeting rooms, banquet rooms and recreational facilities, all receivables, customer obligations, installment payment obligations and other obligations now existing or hereafter
arising or created out of the sale, lease, sublease, license, concession or other grant of the right of the use and occupancy of property or rendering of services by Borrower or any operator or manager of the hotel or the commercial space located in
the Improvements or acquired from others (including, without limitation, from the rental of any office space, retail space, guest rooms or other space, halls, stores, and offices, and deposits securing reservations of such space), license, lease,
sublease and concession fees and rentals, health club membership fees, food and beverage wholesale and retail sales, service charges, vending machine sales and proceeds, if any, from business interruption or other loss of income insurance;
provided, however that Rent shall not include rent or other payments due under the Operating Lease to the extent they represent income already included as “Rent” hereunder. 
  
 “Replacement Franchise Agreement” shall mean either (a) a
franchise, trademark and license agreement with a Qualified Franchisor substantially in the same form and substance as the Franchise Agreement, or (b) a franchise, trademark and license agreement with a Qualified Franchisor, which franchise,
trademark and license agreement shall be reasonably acceptable to Lender in form and substance, provided, with respect to this subclause (b), Borrower shall have obtained prior written confirmation from the applicable Rating Agencies that
such franchise, trademark and license agreement will not cause a downgrade, withdrawal or qualification of the then current rating of the Securities or any class thereof. 
  
 “Replacement Interest Rate Cap Agreement” shall mean, collectively, one or more interest rate protection
agreements, acceptable to Lender, from an Acceptable Counterparty with terms identical to the Interest Rate Cap Agreement except that the same shall be effective as of the date required in Section 2.2.7(c); provided that, to the extent
any such interest rate protection agreements do not meet the foregoing requirements, a “Replacement Interest Rate Cap Agreement” shall be such interest rate protection agreements approved in writing by the Rating Agencies with respect
thereto. 
  
 “Replacement Management Agreement”
shall mean, collectively, (a) either (i) a management agreement with a Qualified Manager substantially in the same form and substance as the Management Agreement, or (ii) a management agreement with a Qualified Manager, which management agreement
shall be reasonably acceptable to Lender in form and substance, provided, with respect to this subclause (ii), Borrower shall have obtained prior written confirmation from the applicable Rating Agencies that such management agreement will not
cause a downgrade, withdrawal or qualification of the then current rating of the Securities or 

  

 -24- 

 
any class thereof and (b) an assignment of management agreement and subordination of management fees substantially in the form then used by Lender (or of
such other form and substance reasonably acceptable to Lender), executed and delivered to Lender by Borrower and such Qualified Manager at Borrower’s expense. 
  
 “Replacement Reserve Account” shall have the meaning set forth in Section 7.3.1 hereof. 

 
 “Replacement Reserve Fund” shall have the meaning set
forth in Section 7.3.1 hereof. 
  
 “Replacement
Reserve Monthly Deposit” shall have the meaning set forth in Section 7.3.1 hereof. 
  
 “Replacements” shall have the meaning set forth in Section 7.3.1 hereof. 
  
 “Required PIP Amount” shall have the meaning set forth in
Section 7.3.1 hereof. 
  
 “Required Repair
Account” shall have the meaning set forth in Section 7.1.1 hereof. 
  
 “Required Repair Fund” shall have the meaning set forth in Section 7.1.1 hereof. 
  
 “Required Repairs” shall have the meaning set forth in Section 7.1.1 hereof. 
  
 “Reserve Funds” shall mean, collectively, the Tax and
Insurance Escrow Fund, the Replacement Reserve Fund, the Required Repair Fund, the Debt Service Reserve Fund, the CSFB Assets Escrow Fund, the Ground Lease Reserve Fund, the Liquidity Reserve Fund and any other escrow fund established by the Loan
Documents. 
  
 “Restoration” shall mean the
repair and restoration of an Individual Property after a Casualty or Condemnation as nearly as possible to the condition the Individual Property was in immediately prior to such Casualty or Condemnation, with such alterations as may be reasonably
approved by Lender. 
  
 “Restricted Party” shall
mean, collectively, Borrower, Principal, Operating Lessee, Guarantor, Mezzanine Borrower and Junior Mezzanine Borrower. 
  
 “S&P” shall mean Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies. 
  
 “Sale or Pledge” shall mean a voluntary or involuntary sale,
conveyance, assignment, transfer, encumbrance or pledge of a legal or beneficial interest, whether direct or indirect. 
  
 “Securities” shall have the meaning set forth in Section 9.1 hereof. 
  

 -25- 

 “Securities Act” shall have the meaning set forth in Section 9.2(a) hereof.

  
 “Securitization” shall have the meaning set
forth in Section 9.1 hereof. 
  
 “Servicer” shall have the meaning set forth in Section 9.5 hereof. 
  
 “Servicing Agreement” shall have the meaning set forth in Section 9.5 hereof. 
  
 “Severed Loan Documents” shall have the meaning set forth in
Section 8.2(c) hereof. 
  
 “Special Form”
shall have the meaning set forth in Section 6.1(a)(i) hereof. 
  
 “Special Purpose Entity” shall mean a corporation, limited partnership or limited liability company which, at all times on and after the Closing Date, complies with the following requirements unless it has received the
prior consent of Lender or a permitted administrative agent thereof, or, while the Loan is securitized, unless it has received confirmation from each of the applicable Rating Agencies that such action would not result in the requalification,
withdrawal, or downgrade of the ratings of any Securities or any class thereof: 
  
 (i) is organized solely for the purpose of (a) acquiring, developing, owning, holding, selling, leasing, transferring, exchanging,
managing and operating one (1) or more of the Properties, entering into this Agreement with Lender, refinancing the Properties in connection with a permitted repayment of the Loan, and transacting lawful business that is incident, necessary and
appropriate to accomplish the foregoing; or (b) acting as a general partner of the limited partnership that owns one (1) or more of the Properties, as member of the limited liability company that owns one (1) or more of the Properties; 

 
 (ii) is not engaged and will not engage in any business
unrelated to (a) the acquisition, development, ownership, leasing, management or operation of one (1) or more of the Properties, (b) acting as general partner of the limited partnership that owns one (1) or more of the Properties or (c) acting as a
member of the limited liability company that owns one (1) or more of the Properties, as applicable; 
  
 (iii) does not have and will not have any assets other than those related to one (1) or more of the Properties or its partnership interest
in the limited partnership or the member interest in the limited liability company that owns one (1) or more of the Properties or acts as the general partner or managing member thereof, as applicable; 
  
 (iv) is not engaging, seeking or consenting to and will not
engage in, seek or consent to any dissolution, winding up, liquidation, consolidation, merger, sale of all or substantially all of its assets, transfer of partnership or membership interests (if such entity is a general partner in a limited
partnership or a member in a limited liability company) or amendment of its limited partnership agreement, articles of incorporation, articles of organization, certificate of formation or 

  

 -26- 

 
operating agreement (as applicable) with respect to the matters set forth in this definition; 
  
 (v) if such entity is a limited partnership, has, as its only general partners, Special Purpose Entities
that are corporations, limited partnerships or limited liability companies (with more than one (1) member); 
  
 (vi) if such entity is a corporation, has at least two (2) Independent Directors, and has not caused or allowed and will not cause or
allow the board of directors of such entity to take any action requiring the unanimous affirmative vote of one hundred percent (100%) of the members of its board of directors unless two (2) Independent Directors shall have participated in such vote;

  
 (vii) if such entity is a multiple member
limited liability company, has at least one (1) member that is a Special Purpose Entity that is a corporation that has at least two (2) Independent Directors and that owns at least one half of one percent (0.5%) of the equity of the limited
liability company; 
  
 (viii) if such entity is a
single member limited liability company, is formed in Delaware and has two (2) alternate springing members, if such members are natural persons, or one (1) springing member if such member is an entity with either a board of managers with two (2)
Independent Directors or a non-member manager that is a Special Purpose Entity that is a corporation with two (2) Independent Directors; 
  
 (ix) shall not, and if such entity is (a) a limited liability company, has articles of organization, a certificate of formation and/or an
operating agreement, as applicable, (b) a limited partnership, has a limited partnership agreement, or (c) a corporation, has a certificate of incorporation or articles that, in each case, provide that such entity shall not: (1) dissolve, merge,
liquidate, consolidate; (2) sell all or substantially all of its assets or the assets of Borrower (as applicable); (3) engage in any other business activity, or amend its organizational documents with respect to the matters set forth in this
definition without the consent of Lender; or (4) without the affirmative vote of two (2) Independent Directors and of all other directors of the corporation (that is such entity or the general partner or managing or co-managing member or non-member
manager of such entity), on behalf of or with respect to itself or to any other entity in which it has a direct or indirect legal or beneficial ownership interest: (A) file or consent to the filing of any bankruptcy, insolvency or reorganization
case or proceeding, institute any proceedings under any applicable insolvency law or otherwise seek relief under any laws relating to the relief from debts or the protection of debtors generally, file a bankruptcy or insolvency petition or otherwise
institute insolvency proceedings; (B) seek or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official for the entity or a substantial portion of its property; (C) make an assignment
for the benefit of the creditors of the entity; or (D) take any action in furtherance of any of the foregoing; 
  

 -27- 

 (x) if such entity is a limited liability company that is the general partner of a
limited partnership or the member of a limited liability company that is Borrower, has a board of directors with at least two (2) Independent Directors; 
  
 (xi) is and will remain solvent and pay its debts and liabilities (including, as applicable, shared personnel and overhead expenses) from
its assets as the same shall become due, and is maintaining and will maintain adequate capital (excluding that certain loan made by Operating Lessee to Hotel Partners) for the normal obligations reasonably foreseeable in a business of its size and
character and in light of its contemplated business operations; 
  
 (xii) will not fail to correct any known misunderstanding regarding the separate identity of such entity and has not and will not identify itself as a division of any other Person; 
  
 (xiii) will maintain its bank accounts, books of account,
books and records separate from those of any other Person and will file its own tax returns except to the extent that it is required by law also to file consolidated tax returns and, if it is a corporation, will not file a consolidated federal
income tax return with any other corporation, except to the extent that it is required by law to file consolidated tax returns; 
  
 (xiv) will maintain its own records, books, resolutions and agreements; 
  
 (xv) will not commingle its funds or assets with those of any other Person and has not participated and will
not participate in any cash management system with any other Person, except as contemplated by the Loan Documents; 
  
 (xvi) will hold its assets in its own name; 
  
 (xvii) will conduct its business in its name or in a name franchised or licensed to it by an entity other than an Affiliate of itself or
of Borrower, except for services rendered under a business management services agreement with an Affiliate that complies with the terms contained in Subsection (xxx) below, so long as the manager, or equivalent thereof, under such business
management services agreement holds itself out as an agent of Borrower; 
  
 (xviii) (a) will maintain its financial statements, accounting records and other entity documents separate from those of any other Person; (b) shall, in its financial statements, show its assets and liabilities
separate and apart from those of any other Person except as required by GAAP in connection with the preparation of consolidated financial statements; and (c) will not permit its assets to be listed as assets on the financial statement of any other
Person except as required by GAAP in connection with the preparation of consolidated financial statements; provided, however, that any such consolidated financial statements referenced in clause (b) or (c) above shall contain a note
indicating that it is a separate entity and that its separate assets and liabilities are neither available to pay the debts of the consolidated entity nor constitute obligations of the 

  

 -28- 

 
consolidated entity except that any consolidated financial statements of Hotel Fund will be based on the equity value of Hotel Fund’s interest in Hotel
Partners and will generally disclose the fact that substantially all of Hotel Fund’s investments are held through ventures that constitute separate legal entities and that certain ventures have obtained third party long term debt financing in
connection with their acquisition of underlying assets, and that Hotel Fund’s investments are subordinated to the repayment of such venture’s liabilities and any consolidated financial statements of Hotel Partners shall contain a similar
disclosure; 
  
 (xix) will pay its own
liabilities and expenses, including the salaries of its own employees, out of its own funds and assets, and has maintained and will maintain a sufficient number of employees in light of its contemplated business operations; 
  
 (xx) will observe all partnership, corporate or limited
liability company formalities, as applicable; 
  
 (xxi) in the case of Borrower, Mezzanine Borrower, Junior Mezzanine Borrower and Operating Lessee collectively, have and will have no Indebtedness other than (a) the related Loan, Mezzanine Loan or Junior Mezzanine Loan, as applicable, (b)
liabilities incurred in the ordinary course of business relating to the ownership and operation of the Properties and the routine administration of Borrower, in amounts not to exceed five percent (5%) of the aggregate original principal amounts of
the Loan, the Mezzanine Loan and the Junior Mezzanine Loan (and with respect to each Individual Property, five percent (5%) of the Release Amount for such Individual Property) which liabilities are not more than sixty (60) days past the date
incurred, are not evidenced by a note and are paid when due, and which amounts are normal and reasonable under the circumstances, (c) Operating Rent Credits not to exceed $1,000,000 in the aggregate with respect to all Operating Leases, (d) certain
shareholder debt of Operating Lessee as set forth in the related organizational documents and (e) such other liabilities that are permitted pursuant to this Agreement; 
  
 (xxii) will not assume or guarantee or, except in its capacity as general partner, become obligated for the
debts of any other Person, hold out its credit as being available to satisfy the obligations of any other Person or pledge its assets for the benefit of any other Person, except in connection with any Operating Lessee’s obligations under any
Management or Franchise Agreement in effect as of the Closing Date and as otherwise permitted pursuant to this Agreement; 
  
 (xxiii) will not acquire obligations or securities of its partners, members or shareholders or any other Affiliate; 
  
 (xxiv) will allocate fairly and reasonably any overhead
expenses that are shared with any Affiliate, including, but not limited to, paying for shared office space and services performed by any employee of an Affiliate; 
  

 -29- 

 (xxv) maintains and uses and will maintain and use separate stationery, invoices and
checks bearing its name. The stationery, invoices, and checks utilized by the Special Purpose Entity or utilized to collect its funds or pay its expenses shall bear its own name and shall not bear the name of any other entity unless such entity is
clearly designated as being the Special Purpose Entity’s agent; 
  
 (xxvi) will not pledge its assets for the benefit of any other Person; 
  
 (xxvii) will hold itself out and identify itself as a separate and distinct entity under its own name or in a name franchised or licensed
to it by an entity other than an Affiliate of Borrower and not as a division or part of any other Person, except for services rendered under a business management services agreement with an Affiliate that complies with the terms contained in
Subsection (xxx) below, so long as the manager, or equivalent thereof, under such business management services agreement holds itself out as an agent of Borrower; 
  
 (xxviii) has maintained and will maintain its assets in such a manner that it will not be costly or
difficult to segregate, ascertain or identify its individual assets from those of any other Person; 
  
 (xxix) has not made and will not make loans to any Person or, with the exception of that certain loan made by Operating Lessee to Hotel
Partners, hold evidence of indebtedness issued by any other Person or entity (other than cash and investment-grade securities issued by an entity that is not an Affiliate of or subject to common ownership with such entity); 
  
 (xxx) has not identified and will not identify its partners,
members or shareholders, or any Affiliate of any of them, as a division or part of it, and has not identified itself and shall not identify itself as a division of any other Person; 
  
 (xxxi) has not entered into or been a party to, and will not enter into or be a party to, any transaction
with its partners, members, shareholders or Affiliates except (a) in the ordinary course of its business and on terms which are intrinsically fair, commercially reasonable and are no less favorable to it than would be obtained in a comparable
arm’s-length transaction with an unrelated third party and (b) in connection with this Agreement; 
  
 (xxxii) has not and will not have any obligation to, and will not, indemnify its partners, officers, directors or members, as the case may
be, unless such an obligation is fully subordinated to the Debt and will not constitute a claim against it in the event that cash flow in excess of the amount required to pay the Debt is insufficient to pay such obligation; 
  
 (xxxiii) if such entity is a corporation, it shall consider
the interests of its creditors in connection with all corporate actions; 
  

 -30- 

 (xxxiv) does not and will not have any of its obligations guaranteed by any Affiliate,
except in connection with any Operating Lessee’s obligations under any Management or Franchise Agreement in effect as of the Closing Date and as otherwise permitted under the Loan Documents; 
  
 (xxxv) shall not form, acquire or hold any subsidiary,
except that (i) the general partner or member of Borrower that is a Special Purpose Entity may acquire and hold its interest in Borrower, (ii) each Individual Borrower may acquire and hold its interest in the related Operating Lessee, and (iii) with
respect to the Individual Property located in Houston, Texas, the related Operating Lessee may hold that certain subsidiary, which is a Texas corporation, solely for the purpose of holding the applicable liquor licenses for such Individual Property,
provided that such subsidiary shall be a Special Purpose Entity; and 
  
 (xxxvi) has complied and will comply with all of the terms and provisions contained in its organizational documents. The statement of facts contained in its organizational documents are true and correct and will
remain true and correct. 
  
 “Spread” shall mean
(i) with respect to Component A-1, one and ten thousand eight hundred eleven millionths percent (1.010811%), (ii) with respect to Component A-2, one and seven thousand eight hundred ninety-eight ten-thousandths percent (1.7898%), (iii) with respect
to Component B, two and one thousand three hundred ninety-eight ten-thousandths percent (2.1398%), (iv) with respect to Component C, two and five thousand eight hundred ninety-eight ten-thousandths percent (2.5898%), (v) with respect to Component D,
two and nine thousand three hundred ninety-eight ten-thousandths percent (2.9398%), (vi) with respect to Component E, three and four thousand three hundred ninety-eight ten-thousandths percent (3.4398%), (vii) with respect to Component F, three and
five thousand three hundred ninety-eight ten-thousandths percent (3.5398%), and (viii) with respect to Component G, four and five thousand three hundred ninety-eight ten-thousandths percent (4.5398%), provided however that in no event shall the
weighted average of the Spreads, immediately following a Spread Adjustment Event, be greater than the sum of (1) two and four tenths percent (2.40%) and (2) the Interest Rate Creep immediately following such Spread Adjustment Event. 
  
 “Spread Adjustment Event” shall mean a Deleveraging
Prepayment in the amount necessary to reduce the outstanding principal balances of the Mezzanine Loan and the Junior Mezzanine Loan to zero and the Loan to no more than the positive difference, if any, between (a) One Hundred Seventy-Seven Million
Dollars ($177,000,000) and (b) fifty percent (50%) of the cumulative amount of all Allocated Purchase Prices of all Properties released from the Liens of the related Mortgages in accordance with this Agreement prior to or contemporaneously with such
Deleveraging Prepayment. 
  
 “Spread Maintenance
Payment” shall mean, with respect to any repayment of the outstanding principal amount of the Loan (with the exception of any repayment made in connection with a Deleveraging Prepayment or a CSFB Assets Prepayment) prior to the Prepayment
Release Date, a payment to Lender in an amount equal to the sum of the present values of each future installment of interest that would be payable under the Loan on the outstanding principal amount of the Loan from the date of such prepayment
through, but 

  

 -31- 

 
excluding, the Prepayment Release Date, assuming an interest rate equal to the difference between (a) the weighted average of either (i) the Floating
Interest Rate in effect as of the date of such prepayment on each of the Components, weighted on the principal balance of each such Component on the date of such prepayment (taking into account the effect of any floors on such Floating Interest
Rate) if the Loan is a Floating Interest Rate Loan as of the date of such prepayment or (ii) if the Loan is a Prime Rate Loan as of the date of such prepayment, the Prime Rate plus the Prime Rate Spread in effect as of the date of such prepayment on
each of the Components, weighted on the principal balance of each such Component on the date of such prepayment and (b) either (i) LIBOR in effect as of the date of such prepayment if the Loan is a Floating Interest Rate Loan as of the date of such
prepayment or (ii) the Prime Rate in effect as of the date of such prepayment if the Loan is a Prime Rate Loan as of the date of such prepayment, such future installments of interest to be discounted at an interest rate per annum equal to the
Treasury Constant Maturity Yield Index published during the second full week preceding the date on which such premium is payable for instruments having a maturity coterminous with the Prepayment Release Date. 
  
 “State” shall mean, with respect to an Individual Property,
the State or Commonwealth in which such Individual Property or any part thereof is located. 
  
 “Strike Price” shall mean (a) with respect to Component A-1, seven and nineteen hundredths percent (7.19%), (b) with respect to Component A-2, seven and nineteen hundredths percent (7.19%), (c) with
respect to Component B, seven percent (7.0%), (d) with respect to Component C, six and eighty-six hundredths percent (6.86%), (e) with respect to Component D, six and fifty-six hundredths percent (6.56%), (f) with respect to Component E, six and six
hundredths percent (6.06%), (g) with respect to Component F, five and ninety-six hundredths percent (5.96%), and (h) with respect to Component G, four and ninety-six hundredths percent (4.96%). 
  
 “Survey” shall mean a survey of the Individual Property in
question prepared in accordance with the Minimum Standard Detail Requirements (or the corresponding State requirements) for ALTA/ACSM Land Title Surveys, jointly adopted by the American Land Title Association, the American Congress on Surveying
& Mapping and the National Society of Professional Surveyors in 1999, including all or substantially all of items 2, 3, 4, 6, 7(a), 7(b)(1), 8, 9, 10, 11(a), 13, 14, 15 and 16 of Table A thereof, by a surveyor licensed in the State and
reasonably satisfactory to Lender and the company or companies issuing the Title Insurance Policies, and containing a certification of such surveyor reasonably satisfactory to Lender. 
  
 “Tax and Insurance Escrow Fund” shall have the meaning set forth in Section 7.2 hereof. 

 
 “Taxes” shall mean all real estate and personal property
taxes, assessments, water rates or sewer rents, now or hereafter levied or assessed or imposed against any Individual Property or part thereof. 
  
 “Threshold Amount” shall have the meaning set forth in Section 5.1.21 hereof. 
  

 -32- 

 “Title Insurance Policies” shall mean, with respect to each Individual Property, an ALTA
mortgagee title insurance policy in the form acceptable to Lender (or, if an Individual Property is in a State which does not permit the issuance of such ALTA policy, such form as shall be permitted in such State and acceptable to Lender) issued
with respect to such Individual Property and insuring the lien of the Mortgage encumbering such Individual Property. 
  
 “Transfer” shall have the meaning set forth in Section 5.2.10(b) hereof. 
  
 “Transferee” shall have the meaning set forth in Section
5.2.10(e)(iii) hereof. 
  
 “Transferee’s
Principals” shall mean, collectively, (A) Transferee’s managing members, general partners or principal shareholders and (B) such other members, partners or shareholders which directly or indirectly shall own a fifty-one percent (51%)
or greater economic and voting interest in Transferee. 
  
 “Troy Property” shall mean that certain Individual Property known as Troy Marriott, located in Troy, Michigan. 
  
 “Tyson’s Corner Property” shall mean that certain Individual Property known as Marriott Tyson’s Corner, located in Vienna,
Virginia. 
  
 “UCC” or “Uniform Commercial
Code” shall mean the Uniform Commercial Code as in effect in the applicable State in which (a) an Individual Property is located and (b) perfection of a security interest in the Collateral is made. 
  
 “UCC Financing Statements” shall mean the UCC financing
statement executed in connection with the Cash Management Agreement, the Pledge Agreements and the other Loan Documents and filed in the applicable filing offices. 
  
 “Uniform System of Accounts” shall mean the most recent edition of the Uniform System of Accounts for
Hotels as adopted by the American Hotel and Motel Association. 
  
 “U.S. Obligations” shall mean non-redeemable securities evidencing an obligation to timely pay principal and/or interest in a full and timely manner that are direct obligations of the United States of America for the
payment of which its full faith and credit is pledged. 
  
 “Valley River Inn Parking Easement” shall mean, with respect to the Valley River Inn Property, that certain Grant of Easement dated May 2, 1997 from May Stores Seventy Four Corporation to Patriot American Hospitality
Partnership, L.P. and recorded in the Official Records of Lane County, Oregon on May 19, 1997 as Instrument No. 9733863 and the related Settlement Agreement dated October 1, 1996 between Patriot American Hospitality Partnership, L.P., May Stores
Seventy Four Corporation and The May Department Store Company. 
  
 “Valley River Inn Property” shall mean that certain Individual Property known as the Valley River Inn, located in Eugene, Oregon. 
  

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 Section 1.2 Principles of Construction. All references to sections and schedules are
to sections and schedules in or to this Agreement unless otherwise specified. All uses of the word “including” shall mean “including, without limitation” unless the context shall indicate otherwise. Unless otherwise specified,
the words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Unless otherwise
specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms of the terms so defined. 
  

	 	II.	GENERAL TERMS 

  
 Section 2.1 Loan Commitment; Disbursement to Borrower. 
  
 2.1.1 Agreement to Lend and Borrow. Subject to and upon the terms and conditions set forth herein,
Lender hereby agrees to make and Borrower hereby agrees to accept the Loan on the Closing Date. 
  
 2.1.2 Components of the Loan. For the purpose of computing interest payable from time to time on the principal amount of the
Loan and certain other computations set forth herein, the principal balance of the Loan shall be divided into Components A-1 through G. The principal amount of the Components shall be as follows: 
  

			
	 COMPONENT

	  	 PRINCIPAL AMOUNT

	 A-1
	  	 $17,446,453.31

	 A-2
	  	 $87,104,000.00

	 B
	  	 $32,782,000.00

	 C
	  	 $27,767,000.00

	 D
	  	 $ 8,575,000.00

	 E
	  	 $17,284,056.00

	 F
	  	 $17,020,745.00

	 G
	  	 $17,020,745.69

  
 2.1.3
Single Disbursement to Borrower. Borrower may request and receive only one (1) borrowing hereunder in respect of the Loan and any amount borrowed and repaid hereunder in respect of the Loan may not be reborrowed. 
  
 2.1.4 The Note, Mortgage and Loan Documents. The Loan
shall be evidenced by the Note and secured by the Mortgages, the Assignments of Leases and the other Loan Documents. 
  
 2.1.5 Use of Proceeds. Borrower shall use the proceeds of the Loan to (a) acquire the Properties or repay and discharge any existing
loans or other monetary obligations or liens relating to the Properties, (b) pay costs and expenses reasonably incurred in connection with the acquisition of the Properties, including due diligence expenses and closing costs, (c) pay all past-due
Basic Carrying Costs, if any, with respect to the Properties, (d) make deposits into the Reserve Funds on the Closing Date in the amounts provided herein, (e) pay costs and expenses incurred in connection with the closing of the Loan, as approved by
Lender, (f) fund 

  

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any working capital requirements of the Properties, and (g) fund any other Capital Expenditures relating to the Properties and (h) distribute the balance, if
any, to Borrower. 
  
 Section 2.2 Interest
Rate. 
  
 2.2.1 Interest Rate.
Subject to the provisions of this Section 2.2, interest on the outstanding principal balance of each Component of the Loan shall accrue from (and include) the Closing Date through the end of the last Interest Period at the Floating Interest
Rate on each such Component. The total interest accrued under the Loan shall be the sum of the interest accrued on each of the Components. Borrower shall pay to Lender on each Payment Date the interest accrued on the Loan for the related Interest
Period. 
  
 2.2.2 Interest Calculation.
Interest on the outstanding principal balance of each Component of the Loan shall be calculated by multiplying (a) the actual number of days elapsed in the related Interest Period for which the calculation is being made by (b) a daily rate based on
a three hundred sixty (360) day year by (c) the outstanding principal balance of the related Component. 
  
 2.2.3 Determination of Interest Rate. (a) Subject to the terms and conditions of this Section 2.2.3, each Component of the Loan shall
bear interest at the Floating Interest Rate applicable to such Component. The Floating Interest Rate applicable to an Interest Period shall be determined by Lender as set forth herein; provided, however, that LIBOR for the Interest
Period commencing on the Closing Date through and including December 31, 2002 shall be two percent (2.0%). 
  
 (b) In the event that Lender shall have reasonably determined that by reason of circumstances affecting the interbank eurodollar market LIBOR cannot be
determined as provided in the definition of LIBOR as set forth herein, then Lender shall forthwith give notice by telephone of such fact, confirmed in writing, to Borrower at least one (1) Business Day prior to the last day of the Interest Period in
which such fact shall be determined. If such notice is given, the Loan shall be converted, from and after the first day of the next succeeding Interest Period, to a Prime Rate Loan. 
  
 (c) If, pursuant to the terms of this Agreement, any portion of the Loan has been converted to a Prime Rate Loan and Lender
shall determine that the event(s) or circumstance(s) which resulted in such conversion shall no longer be applicable, Lender may give notice thereof to Borrower and convert the Prime Rate Loan back to a Floating Interest Rate Loan by delivering to
Borrower notice of such conversion no later than 11:00 a.m. (New York City Time), three (3) Business Days prior to the first day of the next succeeding Interest Period, in which event the Prime Rate Loan shall be converted to a Floating Interest
Rate Loan from, after and including the first day of the next succeeding Interest Period. Notwithstanding any provision of this Agreement to the contrary, in no event shall Borrower have the right to elect to convert a Floating Interest Rate Loan to
a Prime Rate Loan. 
  
 (d) With respect to a Floating Interest
Rate Loan, all payments made by Borrower to a Lender hereunder shall be made free and clear of, and without reduction for or on account of, income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions, 

  

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reserves or withholdings imposed, levied, collected, withheld or assessed by any Governmental Authority, which are imposed, enacted or become effective after
the date such Lender acquires its interest in the Loan (or designates a new lending office in a different jurisdiction), excluding (i) income and franchise taxes of the United States of America or any political subdivision or taxing authority
thereof or therein (including Puerto Rico), or of the jurisdiction under the laws of which such Lender is organized or in which its principal office or lending office is located; (ii) any branch profits taxes imposed by the United States of America,
or any similar tax imposed by any other jurisdiction described in clause (i) above; and (iii) in the case of a Foreign Lender, any withholding tax that is in effect and would apply to amounts payable to such Foreign Lender at the time such
Foreign Lender acquires its interest in the Loan (or designates a new lending office in a different jurisdiction) and any withholding tax that would not be due but for such Foreign Lender’s failure to comply with the requirements of Section
2.2.3(e) hereof (all such non-excluded taxes being referred to collectively as “Foreign Taxes”). If any Foreign Taxes are required to be withheld from any amounts payable to Lender hereunder, the amounts so payable to such
Lender shall be increased to the extent necessary to yield to such Lender (after payment of all Foreign Taxes) interest or any such other amounts payable hereunder at the rate or in the amounts such Lender would have received had no such Foreign
Taxes been withheld. Whenever any Foreign Tax is payable pursuant to applicable law by Borrower, as promptly as possible thereafter, Borrower shall send to Lender an original official receipt, if available, or certified copy thereof showing payment
of such Foreign Tax. Borrower hereby agrees to indemnify Lender for any incremental taxes, interest or penalties that may become payable by Lender which may result from any failure by Borrower to pay any such Foreign Tax when due to the appropriate
taxing authority or any failure by Borrower to remit to Lender the required receipts or other required documentary evidence. 
  
 (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of any jurisdiction that imposes any Foreign
Tax with respect to payments under this Agreement, or under any treaty to which such jurisdiction is a party shall deliver to Borrower, at Borrower’s cost, at the time or times prescribed by applicable law, such properly completed and executed
documentation prescribed by applicable law or reasonably requested by Borrower as will permit any payments with respect to the Floating Interest Rate Loan to be made without withholding or at a reduced rate. 
  
 (f) If any requirement of law or any change therein or in the interpretation
or application thereof, shall hereafter make it unlawful for Lender to make or maintain a Floating Interest Rate Loan as contemplated hereunder, (i) the obligation of Lender hereunder to make a Floating Interest Rate Loan or to convert a Prime Rate
Loan to a Floating Interest Rate Loan shall be canceled forthwith and (ii) any outstanding Floating Interest Rate Loan shall be converted automatically to a Prime Rate Loan on the first day of the next succeeding Interest Period or within such
earlier period as required by law. Borrower hereby agrees promptly to pay Lender, upon demand, any additional amounts necessary to compensate Lender for any costs incurred by Lender in making any conversion in accordance with this Agreement,
including, without limitation, any interest or fees payable by Lender to lenders of funds obtained by it in order to make or maintain the Floating Interest Rate Loan hereunder. Lender’s notice of such costs, as certified to Borrower, shall be
conclusive absent manifest error. 
  

 -36- 

 (g) In the event that any change in any requirement of law or in the interpretation or application
thereof, or compliance by Lender with any request or directive (whether or not having the force of law) hereafter issued from any central bank or other Governmental Authority: 
  
 (i) shall hereafter impose, modify or hold applicable any reserve, special deposit, compulsory loan or
similar requirement against assets held by, or deposits or other liabilities in or for the account of, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of Lender which is not otherwise included in
the determination of LIBOR hereunder; 
  
 (ii)
shall hereafter have the effect of reducing the rate of return on Lender’s capital as a consequence of its obligations hereunder to a level below that which Lender could have achieved but for such adoption, change or compliance (taking into
consideration Lender’s policies with respect to capital adequacy) by any amount deemed by Lender to be material; or 
  
 (iii) shall hereafter impose on Lender any other condition and the result of any of the foregoing is to increase the cost to Lender of
making, renewing or maintaining loans or extensions of credit or to reduce any amount receivable hereunder; 
  
 then, in any such case, Borrower shall promptly pay Lender, upon demand, any additional amounts necessary to compensate Lender for such additional cost or reduced amount receivable which Lender deems to be material as
determined by Lender in its reasonable discretion; provided, however, this Section 2.2.3(g) shall not apply to any additional cost or reduced amount receivable related to any income, stamp or other taxes, levies, imposts,
duties, charges, fees, deductions, reserves or withholdings, which shall be covered solely under Section 2.2.3(d) above. If Lender becomes entitled to claim any additional amounts pursuant to this Section 2.2.3(g), Lender shall provide
Borrower with not less than sixty (60) days written notice specifying in reasonable detail the event by reason of which it has become so entitled and the additional amount required to fully compensate Lender for such additional cost or reduced
amount. A certificate as to any additional costs or amounts payable pursuant to the foregoing sentence submitted by Lender to Borrower shall be conclusive in the absence of manifest error. Subject to Section 2.2.3(i) hereof, this provision
shall survive payment of the Note and the satisfaction of all other obligations of Borrower under this Agreement and the Loan Documents. 
  
 (h) Borrower agrees to indemnify Lender and to hold Lender harmless from any loss or expense which Lender sustains or incurs as a consequence of (i) any
default by Borrower in payment of the principal of or interest on a Floating Interest Rate Loan, including, without limitation, any such loss or expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to
maintain a Floating Interest Rate Loan hereunder, (ii) any prepayment (whether voluntary or mandatory) of the Floating Interest Rate Loan on a day that (A) is not a Payment Date or (B) is a Payment Date if Borrower did not give the prior written
notice of such prepayment required pursuant to the terms of this Agreement, including, without limitation, such loss or expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain the Floating
Interest Rate Loan hereunder and 

  

 -37- 

 
(iii) the conversion pursuant to the terms hereof of the Floating Interest Rate Loan to the Prime Rate Loan on a date other than the Payment Date, including,
without limitation, such loss or expenses arising from interest or fees payable by Lender to lenders of funds actually obtained by it in order to maintain a Floating Interest Rate Loan hereunder, including “prepayment interest shortfalls”
in a Securitization (the amounts referred to in clauses (i), (ii) and (iii) are herein referred to collectively as the “Breakage Costs”); provided, however, Borrower shall not indemnify Lender from any loss or expense
arising from Lender’s willful misconduct or gross negligence. This provision shall survive payment of the Note in full and the satisfaction of all other obligations of Borrower under this Agreement and the other Loan Documents. 
  
 (i) Lender shall not be entitled to claim compensation pursuant to this
Section 2.2.3 for any Foreign Taxes, increased cost or reduction in amounts received or receivable hereunder, or any reduced rate of return, which was incurred or which accrued more than ninety (90) days before the date Lender notified
Borrower of the change in law or other circumstance on which such claim of compensation is based and delivered to Borrower a written statement setting forth in reasonable detail the basis for calculating the additional amounts owed to Lender under
this Section 2.2.3, which statement shall be conclusive and binding upon all parties hereto absent manifest error. 
  
 2.2.4 Additional Costs. Lender will use reasonable efforts (consistent with legal and regulatory restrictions) to maintain the
availability of the Floating Interest Rate Loan and to avoid or reduce any increased or additional costs payable by Borrower under Section 2.2.3, including, if requested by Borrower, a transfer or assignment of the Loan to a branch, office or
Affiliate of Lender in another jurisdiction, or a redesignation of its lending office with respect to the Loan, in order to maintain the availability of the Floating Interest Rate Loan or to avoid or reduce such increased or additional costs,
provided that the transfer or assignment or redesignation (a) would not result in any additional costs, expenses or risk to Lender that are not reimbursed by Borrower and (b) would not be disadvantageous in any other respect to Lender (including the
effect on any Securitization) as determined by Lender in its reasonable discretion. 
  
 2.2.5 Default Rate. In the event that, and for so long as, any Event of Default shall have occurred and be continuing, the outstanding principal balance of the Loan and, to the extent permitted by
law, all overdue interest in respect of the Loan and any other amounts due pursuant to the Loan Documents shall accrue interest at the Default Rate, calculated from the date such payment was due without regard to any grace or cure periods contained
herein. 
  
 2.2.6 Usury Savings. This
Agreement, the Note and the other Loan Documents are subject to the express condition that at no time shall Borrower be obligated or required to pay interest on the principal balance of the Loan at a rate which could subject Lender to either civil
or criminal liability as a result of being in excess of the Maximum Legal Rate. If, by the terms of this Agreement or the other Loan Documents, Borrower is at any time required or obligated to pay interest on the principal balance due hereunder at a
rate in excess of the Maximum Legal Rate, the Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to the Maximum Legal Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed to
have been payments in reduction of principal and not on account of the interest due hereunder. All sums paid or agreed to be paid to Lender for the 

  

 -38- 

 
use, forbearance, or detention of the sums due under the Loan, shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and
spread throughout the full stated term of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed the Maximum Legal Rate of interest from time to time in effect and applicable to the Loan for so
long as the Loan is outstanding. 
  
 2.2.7 Interest
Rate Cap Agreement. (a) Prior to or contemporaneously with the Closing Date, Borrower shall enter into an Interest Rate Cap Agreement with respect to each Component of the Loan, which Interest Rate Cap Agreement shall have components
corresponding to each Component of the Loan each with a LIBOR strike price equal to the Strike Price of its related Component of the Loan. The Interest Rate Cap Agreement (i) shall at all times be in a form and substance reasonably acceptable to
Lender, (ii) shall at all times be with an Acceptable Counterparty, (iii) shall direct such Acceptable Counterparty to deposit directly into the Cash Management Account any amounts due Borrower under such Interest Rate Cap Agreement so long as any
portion of the Debt remains outstanding, provided that the Debt shall be deemed to be outstanding if the Properties are transferred by judicial or non-judicial foreclosure or deed-in-lieu thereof, (iv) shall be for a period equal to the term
of the Loan, and (v) each component of the Interest Rate Cap Agreement shall at all times have a notional amount equal to or greater than the principal balance of the related Component of the Loan; provided, however, that the notional
amount of each component of the Interest Rate Cap Agreement may be reduced from time to time to equal the outstanding principal balance of the related Component in connection with any prepayment of the principal of any of the Components of the Loan
in accordance with Section 2.4.1 hereof. Borrower shall collaterally assign to Lender, pursuant to the Collateral Assignment of Interest Rate Cap Agreement (the “Assignment of Interest Rate Cap Agreement”), all of its right,
title and interest to receive any and all payments under the Interest Rate Cap Agreement, and shall deliver to Lender an executed counterpart of such Interest Rate Cap Agreement (which shall, by its terms, authorize the assignment to Lender and
require that payments be deposited directly into the Cash Management Account) and shall notify the Acceptable Counterparty of such assignment. At such time as the Loan is repaid in full, all of Lender’s right, title and interest in the Interest
Rate Cap Agreement shall terminate and Lender shall execute and deliver such documents as may be required to evidence Lender’s release of the Interest Rate Cap Agreement and to notify the Counterparty of such release. 
  
 (b) Borrower shall comply with all of its obligations under the terms and
provisions of the Interest Rate Cap Agreement. All amounts paid by the Acceptable Counterparty under the Interest Rate Cap Agreement to Borrower or Lender shall be deposited immediately into the Cash Management Account. Borrower shall take all
actions reasonably requested by Lender to enforce Lender’s rights under the Interest Rate Cap Agreement in the event of a default by the Acceptable Counterparty and shall not waive, amend or otherwise modify any of its rights thereunder.

  
 (c) In the event of any downgrade, withdrawal or qualification
of the rating of the Acceptable Counterparty by any Rating Agency, Borrower shall replace the Interest Rate Cap Agreement with a Replacement Interest Rate Cap Agreement not later than ten (10) Business Days following receipt of notice from Lender of
such downgrade, withdrawal or qualification. 
  

 -39- 

 (d) In the event that Borrower fails to purchase and deliver to Lender the Interest Rate Cap Agreement or
fails to maintain the Interest Rate Cap Agreement in accordance with the terms and provisions of this Agreement, Lender may purchase the Interest Rate Cap Agreement and the cost incurred by Lender in purchasing such Interest Rate Cap Agreement shall
be paid by Borrower to Lender with interest thereon at the Default Rate from the date such cost was incurred by Lender until such cost is reimbursed by Borrower to Lender. 
  
 (e) In connection with the Interest Rate Cap Agreement, Borrower shall obtain and deliver to Lender (a) a
resolution/consent, as applicable, of the Acceptable Counterparty authorizing the delivery of the Interest Rate Cap Agreement acceptable to Lender, and (b) an opinion from counsel (which counsel may be in-house counsel for the Acceptable
Counterparty) for the Acceptable Counterparty (upon which Lender and its successors and assigns may rely) which shall provide, in relevant part, that: 
  
 (i) the Acceptable Counterparty is duly organized, validly existing, and in good standing under the laws of its jurisdiction of
incorporation and has the organizational power and authority to execute and deliver, and to perform its obligations under, the Interest Rate Cap Agreement; 
  
 (ii) the execution and delivery of the Interest Rate Cap Agreement by the Acceptable Counterparty, and any other agreement which the
Acceptable Counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been and remain duly authorized by all necessary action and do not contravene any provision of its certificate of
incorporation or by-laws (or equivalent organizational documents) or any law, regulation or contractual restriction binding on or affecting it or its property; 
  

(iii) all consents, authorizations and approvals required for the execution and delivery by the Acceptable Counterparty of the Interest
Rate Cap Agreement, and any other agreement which the Acceptable Counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been obtained and remain in full force and effect, all conditions
thereof have been duly complied with, and no other action by, and no notice to or filing with any governmental authority or regulatory body is required for such execution, delivery or performance; and 
  
 (iv) the Interest Rate Cap Agreement, and any other
agreement which the Acceptable Counterparty has executed and delivered pursuant thereto, has been duly executed and delivered by the Acceptable Counterparty and constitutes the legal, valid and binding obligation of the Acceptable Counterparty,
enforceable against the Acceptable Counterparty in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of
equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 
  

 -40- 

 Section 2.3 Loan Payment. 
  
 2.3.1 Monthly Debt Service Payments. Borrower shall pay
to Lender (a) on the Closing Date, an amount equal to interest only on the outstanding principal balance of the Loan from the Closing Date up to and including December, 31, 2002, which interest shall be calculated in accordance with the provisions
of Section 2.2 hereof and (b) on each Payment Date commencing on February 1, 2003 and on each Payment Date thereafter up to and including the Maturity Date, Borrower shall make a payment to Lender equal to the Monthly Debt Service Payment
Amount, which payments shall be applied first to interest due for the related Interest Period at the Floating Interest Rate or Prime Rate plus the Prime Rate Spread, as applicable, for such related Interest Period and then to the principal amount of
the Loan due in accordance with this Agreement, and lastly, to any other amounts due and unpaid pursuant to the Loan Documents hereto. 
  
 2.3.2 Payments Generally. The first Interest Period hereunder shall commence on and include the Closing Date and shall end on and
include December 31, 2002. Thereafter, each Interest Period shall commence on the first day of each calendar month during the term of this Agreement and shall end on and include the final calendar date of such calendar month. For purposes of making
payments hereunder, but not for purposes of calculating Interest Periods, if the day on which such payment is due is not a Business Day, then amounts due on such date shall be due on the immediately preceding Business Day and with respect to
payments of principal due on the Maturity Date, interest shall be payable at the Interest Rate or the Default Rate, as the case may be, through and including the last day of the related Interest Period. All amounts due under this Agreement and the
other Loan Documents shall be payable without setoff, counterclaim, defense or any other deduction whatsoever. 
  
 2.3.3 Payment on Maturity Date. Borrower shall pay to Lender on the Maturity Date the outstanding principal balance of the Loan, all
accrued and unpaid interest and all other amounts due hereunder and under the Note, the Mortgages and the other Loan Documents. 
  
 2.3.4 Late Payment Charge. If any principal, interest or any other sums due under the Loan Documents (including the amounts due on
the Maturity Date) are not paid by Borrower on or prior to the date on which it is due, Borrower shall pay to Lender upon demand an amount equal to the lesser of three percent (3%) of such unpaid sum or the Maximum Legal Rate in order to defray the
expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such delinquent payment. Any such amount shall be secured by the Mortgages and the other Loan Documents to the extent
permitted by applicable law. 
  
 2.3.5 Method and
Place of Payment. Except as otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender not later than 11:00 a.m., New York City time, on the date when due and shall be made
in lawful money of the United States of America in immediately available funds at Lender’s office or as otherwise directed in writing by Lender at least three (3) Business Days prior to such date by Lender, and any funds received by Lender
after such time shall, for all purposes hereof, be deemed to have been paid on the next succeeding Business Day. 
  

 -41- 

 Section 2.4 Prepayments. 
  
 2.4.1 Voluntary Prepayments. (a) Except (i) in
connection with a Deleveraging Prepayment and/or a CSFB Assets Prepayment, and (ii) as otherwise provided in Section 2.4.2, Borrower shall not have the right to prepay the Loan in whole or in part prior to the Prepayment Release Date.

  
 (b) Borrower may voluntarily prepay the Loan in whole or in
part if prepayment is made in connection with either (x) a Deleveraging Prepayment, (y) on and after the Prepayment Release Date, Section 2.6.2(e)(ii)(A) hereof, or (z) on and after the Prepayment Release Date, the release of any Individual
Property as provided in Section 2.5.2 hereof, provided that (i) no Event of Default exists; (ii) Lender has received from Borrower all information reasonably requested by Lender relating to any such prepayment, (iii) Borrower gives Lender not
less than fifteen (15) days prior written notice of the amount of the Loan that Borrower intends to prepay and such notice is delivered to Lender after Lender’s receipt of the information required pursuant to subsection (ii) above; and
(iv) Borrower pays Lender, in addition to the outstanding principal amount of the Loan to be prepaid, (A) all interest which would have accrued on the amount of the Loan to be paid through and including the last day of the Interest Period related to
the Payment Date next occurring following the date of such prepayment, or, if such prepayment occurs on a Payment Date, through and including the last day of the Interest Period related to such Payment Date; (B) all other sums due and payable under
this Agreement, the Note, and the other Loan Documents, including, but not limited to the Breakage Costs and all of Lender’s costs and expenses (including reasonable attorney’s fees and disbursements) incurred by Lender in connection with
such prepayment; and (C) if such prepayment is made prior to January 1, 2006, the Prepayment Premium or the Deleveraging Premium, as applicable; provided that if the Deleveraging Premium is required to be paid, Borrower shall not be required to pay
the additional Prepayment Premium. If a notice of prepayment is given by Borrower to Lender pursuant to this Section 2.4.1(b), the amount designated for prepayment and all other sums required under this Section 2.4 shall be due and
payable on the proposed prepayment date. Upon such a prepayment, the amount of principal due each month shall be recomputed based upon a level payment of principal and interest based upon the aggregate outstanding principal balances of the Loan, the
Mezzanine Loan and the Junior Mezzanine Loan remaining following such prepayment, a debt service constant equal to seven and one-quarter percent (7.25%) and an amortization schedule of three hundred (300) months less the number of months (a) from
the first (1st) day of the calendar month following the Closing Date to the date of such prepayment or (b) if the
Closing Date is the first (1st) day of a calendar month, from the Closing Date to the date of such prepayment.
Amortization shall be calculated based on a thirty (30) day month and a three hundred sixty (360) day year accrual period. Such level payment of principal and interest shall be used only for purpose of recalculating the amortization schedule.
Lender’s determination of such recalculated payment shall be binding and conclusive on Borrower. 
  
 2.4.2 Mandatory Prepayments. On the next occurring Payment Date following the date on which Lender actually receives any Net
Proceeds, if Lender is not obligated to make such Net Proceeds available to Borrower for the Restoration of any Individual Property or otherwise remit such Net Proceeds to Borrower pursuant to Section 6.4 hereof, Borrower shall prepay or
authorize Lender to apply such Net Proceeds as a prepayment of all or 

  

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a portion of the outstanding principal balance of the Loan together with accrued interest and any other sums due hereunder in an amount equal to one hundred
percent (100%) of such Net Proceeds; provided, however, if an Event of Default has occurred and is continuing, Lender may apply such Net Proceeds to the Debt (until paid in full) in any order or priority in its sole discretion. Other
than following an Event of Default, no Spread Maintenance Payment or Prepayment Premium shall be due in connection with any prepayment made pursuant to this Section 2.4.2. The Release Amount with respect to the affected Individual Property
shall be reduced in an amount equal to the principal portion of such prepayment. Upon such a prepayment, the amount of principal due each month shall be recomputed based upon a level payment of principal and interest based upon the aggregate
outstanding principal balances of the Loan, the Mezzanine Loan and the Junior Mezzanine Loan remaining following such prepayment, a debt service constant equal to seven and one-quarter percent (7.25%) and an amortization schedule of three hundred
(300) months less the number of months from the first (1st) day of the calendar month following the Closing Date to
the date of such prepayment. Amortization shall be calculated based on a thirty (30) day month and a three hundred sixty (360) day year accrual period. 
  
 2.4.3 Prepayments After Default. If, following an Event of Default, payment of all or any part of the Debt is tendered by Borrower or
otherwise recovered by Lender (including, without limitation, through application of any Reserve Funds), such tender or recovery shall (a) include interest at the Default Rate on the outstanding principal amount of the Loan through the last calendar
day of the Interest Period within which such tender or recovery occurs and (b) be deemed a voluntary prepayment by Borrower (and if such tender or recovery occurs prior to the Prepayment Release Date, it shall be in violation of the prohibition
against prepayment set forth in Section 2.4.1 hereof) and shall in all instances include (i) an amount equal to the applicable Prepayment Premium if such tender or recovery occurs prior to January 1, 2006 plus (ii) an amount equal to the
Spread Maintenance Payment if such tender or recovery occurs prior to the Prepayment Release Date. 
  
 2.4.4 Application of Amortization and Prepayment to Components. With the exception of a Deleveraging Prepayment and a CSFB Assets
Prepayment, any prepayment of the principal of the Loan, in whole or in part, and all amortization shall be applied (i) first, to the reduction of the outstanding principal balance of Component A-1 until reduced to zero, (ii) second, to the
reduction of the outstanding principal balance of Component A-2 until reduced to zero, (iii) third, to the reduction of the outstanding principal balance of Component B until reduced to zero, (iv) fourth, to the reduction of the outstanding
principal balance of Component C until reduced to zero, (v) fifth, to the reduction of the outstanding principal balance of Component D until reduced to zero, (vi) sixth, to the reduction of the outstanding principal balance of Component E until
reduced to zero, (vii) seventh, to the reduction of the outstanding principal balance of Component F until reduced to zero, and (viii) eighth, to the reduction of the outstanding principal balance of Component G until reduced to zero; provided,
however, notwithstanding the foregoing, prior to a Securitization, Lender reserves the right to change the sequence of such application among the Components. Once the Mezzanine Loan and the Junior Mezzanine Loan have been paid in full, a
Deleveraging Prepayment shall be applied (i) first, to the reduction of the outstanding principal balance of Component G until reduced to zero, (ii) second, to the reduction of the outstanding principal balance of Component F until reduced to zero,
(iii) third, to the reduction of the outstanding principal balance of Component E 

  

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until reduced to zero, (iv) fourth, to the reduction of the outstanding principal balance of Component D until reduced to zero, (v) fifth, to the reduction
of the outstanding principal balance of Component C until reduced to zero, (vi) sixth, to the reduction of the outstanding principal balance of Component B until reduced to zero, (vii) seventh, to the reduction of the outstanding principal balance
of Component A-2 until reduced to zero, and (viii) eighth, to the reduction of the outstanding principal balance of Component A-1 until reduced to zero. A CSFB Assets Prepayment shall be applied on a pro-rata basis to each of the Junior Mezzanine
Loan, the Mezzanine Loan and each of the Components of the Loan. 
  
 Section 2.5 Release of Property. Except as set forth in this Section 2.5, no repayment or prepayment of all or any portion of the Loan shall cause, give rise to a right to require, or otherwise result in, the
release of any Lien of any Mortgage on any Individual Property. 
  
 2.5.1 Release of All Properties Upon Payment in Full. 
  
 (a) If Borrower has elected to prepay the entire Loan and the requirements of Section 2.4 and this Section 2.5 have been satisfied, all of the Properties shall be released from the Liens of their
respective Mortgages and the Collateral shall be released from the Lien of the Pledge Agreements. 
  
 (b) In connection with the release of the Mortgages, Borrower shall submit to Lender, not less than thirty (30) days prior to the Payment Date on which
Borrower intends to prepay the Loan in full, a release of Lien (and related Loan Documents) for the Collateral and for each Individual Property for execution by Lender. Such release shall be in a form appropriate in each jurisdiction in which the
Collateral and each Individual Property is located and that would be satisfactory to a prudent lender and contains standard provisions, if any, protecting the rights of the releasing lender. In addition, Borrower shall provide all other
documentation Lender reasonably requires to be delivered by Borrower in connection with such release, together with an Officer’s Certificate certifying that, to such officer’s knowledge after diligent inquiry, such documentation (i) is in
compliance with all Legal Requirements, and (ii) will effect such releases in accordance with the terms of this Agreement. 
  
 2.5.2 Release of Individual Property. If Borrower has elected to prepay a portion of the Loan and (x) the requirements of Section
2.4 and this Section 2.5 have been satisfied, (y) such prepayment was not a Deleveraging Prepayment, and (z) no Event of Default has occurred and is continuing, Borrower may obtain the release of an Individual Property from the Lien of
the Mortgage thereon (and related Loan Documents) and the release of Borrower’s obligations under the Loan Documents with respect to such Individual Property (other than those expressly stated to survive), upon the satisfaction of each of the
following conditions: 
  
 (a) The amount of the outstanding
principal balance of the Loan to be prepaid shall equal or exceed the Adjusted Release Amount for the applicable Individual Property, and such prepayment shall be deemed a voluntary prepayment for all purposes hereunder; 
  
 (b) Borrower shall submit to Lender, not less than thirty (30) days prior to
the Payment Date on which the prepayment will be made, a release of Lien (and related Loan 

  

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Documents) for such Individual Property for execution by Lender. Such release shall be in a form appropriate in each jurisdiction in which the Individual
Property is located and that would be satisfactory to a prudent lender and contains standard provisions, if any, protecting the rights of the releasing lender. In addition, Borrower shall provide all other documentation Lender reasonably requires to
be delivered by Borrower in connection with such release, together with an Officer’s Certificate certifying that, to such officer’s knowledge after diligent inquiry, such documentation (i) is in compliance with all Legal Requirements, (ii)
will effect such release in accordance with the terms of this Agreement, and (iii) will not impair or otherwise adversely affect the Liens, security interests and other rights of Lender under the Loan Documents not being released (or as to the
parties to the Loan Documents and Properties subject to the Loan Documents not being released); 
  
 (c) After giving effect to such release (including the amount prepaid pursuant to Section 2.5.2(a) above), the Debt Service Coverage Ratio for the
Properties then remaining subject to the Liens of the Mortgages shall be equal to the greater of (i) 1.20 to 1.0, and (ii) the Debt Service Coverage Ratio for all of the Properties securing the Loan immediately prior to such release (including any
Individual Property to be released) for the twelve (12) full calendar months immediately preceding the release of the Individual Property; 
  
 (d) Borrower shall deliver to Lender evidence reasonably satisfactory to Lender that the single purpose nature and bankruptcy remoteness of Borrower
following such release are not materially adversely affected by the release (which requirement may include an Additional Insolvency Opinion or a reaffirmation of the Insolvency Opinion satisfactory to Lender and the Rating Agencies); 
  
 (e) If requested by Lender, a “bring-down” or endorsement to each
of the Title Insurance Policies insuring the continued priority of the Lien of each of the related Mortgages without any additional exceptions or conditions to any Title Insurance Policy not set forth therein as of the Closing Date unless otherwise
approved by Lender; 
  
 (f) Borrower shall pay Lender a release
fee of $10,000 and shall reimburse Lender for all legal fees and expenses incurred in connection with the release of the applicable Individual Property from the Lien of the related Mortgage; 
  
 (g) The Individual Property to be released shall be conveyed on market terms
to a Person other than Borrower or any of its Affiliates pursuant to an arm’s-length transaction; and 
  
 (h) Concurrently with the payment of the Adjusted Release Amount, (i) Mezzanine Borrower shall make a partial prepayment of the Mezzanine Loan
equal to the Mezzanine Release Amount applicable to such Individual Property, together with any related interest, fees or other amounts payable under the Mezzanine Loan Documents in connection with such prepayment, including, to the extent such
prepayment is made on a date other than a Payment Date, interest which would have accrued on the outstanding principal balance of the Mezzanine Loan to the next Payment Date and (ii) Junior Mezzanine Borrower shall make a partial prepayment
of the Junior Mezzanine Loan equal to the Junior Mezzanine Release Amount applicable to such Individual Property, together with any related interest, fees or other amounts 

  

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payable under the Junior Mezzanine Loan Documents in connection with such prepayment, including, to the extent such prepayment is made on a date other than a
Payment Date, interest which would have accrued on the outstanding principal balance of the Junior Mezzanine Loan to the next Payment Date. 
  
 2.5.3 Release of Out Parcel. At any time after the Closing Date, Borrower may transfer and obtain a release of an Out Parcel from the
Lien of the applicable Mortgage upon at least thirty (30) days prior written notice, provided that any such release shall only be granted if the following conditions have been met or satisfied: 
  
 (a) Borrower shall (i) pay Lender a processing fee equal to $10,000 and (ii)
reimburse Lender for any costs and expenses it reasonably incurs arising from the transfer of the Out Parcel and any release of the Out Parcel from the Lien of the applicable Mortgage (including, without limitation, reasonable attorneys’ fees
and expenses); 
  
 (b) At the time Borrower requests such release
and at the time such release is granted there is no continuing Event of Default; 
  
 (c) The intended use of such Out Parcel shall not have a material adverse effect on the value, use, operation or occupancy of the Tyson’s Corner Property; 
  
 (d) Upon the transfer and release of the Out Parcel and after the completion
of the standard approval process for tax lot-splits by the applicable municipal authority exercising jurisdiction over the Out Parcel, no part of the remaining Tyson’s Corner Property shall be part of a tax lot which includes any portion of the
related Out Parcel; 
  
 (e) Each applicable municipal authority
exercising jurisdiction over the Out Parcel shall have approved, as part of its standard approval process, a lot-split ordinance or other applicable action under local law dividing the Out Parcel from the remainder of the Tyson’s Corner
Property and the required procedures or processes necessary for the assignment of separate tax identification numbers to each shall be initiated concurrently with the release and transfer of the Out Parcel; 
  
 (f) All requirements under all laws, statutes, rules and regulations
(including, without limitation, all zoning and subdivision laws, setback requirements, sideline requirements, parking ratio requirements, use requirements, building and fire code requirements, environmental requirements and wetlands requirements)
applicable to the Tyson’s Corner Property necessary to accomplish the lot split shall have been fulfilled, and all necessary variances, if any, shall have been obtained, and evidence thereof has been delivered to Lender which in form and
substance is appropriate for the jurisdiction in which the Tyson’s Corner Property is located; 
  
 (g) As a result of the lot split, the remaining Tyson’s Corner Property with all easements appurtenant and other Permitted Encumbrances thereto will
not be in violation of any then applicable law, statute, rule or regulation (including, without limitation, all zoning and subdivision laws, setback requirements, sideline requirements, parking ratio requirements, use requirements, building and fire
code requirements, environmental requirements and wetland requirements) and all necessary variances, if any, shall have been obtained and evidence thereof 

  

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has been delivered to Lender which in form and substance is appropriate for the jurisdiction in which the Tyson’s Corner Property is located;

  
 (h) Lender shall receive evidence that the single purpose
nature and bankruptcy remoteness of Borrower and its shareholders or partners following such release have not been adversely affected and are in accordance with the terms and provisions of the Loan Documents (which requirement may include a
“bring-down” of the Insolvency Opinion previously delivered to Lender); 
  
 (i) Appropriate reciprocal easement agreements for the benefit and burden of the remaining Tyson’s Corner Property and the Out Parcel requiring no cost or expense to Borrower regarding the use of common
facilities of such parcels, including, but not limited to, roadways, parking areas, utilities and community facilities, in a form and substance that would be reasonably acceptable to an ordinary prudent lender and which easements will not materially
adversely affect the remaining Tyson’s Corner Property, shall be declared and recorded, and the remaining Tyson’s Corner Property and the Out Parcel shall be in compliance with all applicable covenants under all easements and property
agreements contained in the Permitted Encumbrances for the Tyson’s Corner Property; 
  
 (j) Lender shall have received (i) an appropriate title policy endorsement to the effect that the release of the Out Parcel will not have an adverse affect on the priority of the Lien of the related Mortgage on the
remaining Tyson’s Corner Property, provided, however, the Lien of the Mortgage on the remaining Tyson’s Corner Property shall be subordinated to any easements created in connection with the release of the Out Parcel pursuant to this
Section 2.5.3, and (ii) an appropriate title policy endorsement or other evidence reasonably satisfactory to Lender that there are no new or additional subordinate Liens on the remaining Tyson’s Corner Property other than Permitted
Encumbrances; 
  
 (k) Borrower has delivered an Officer’s
Certificate to the effect that, to such officer’s knowledge after diligent inquiry, the conditions in subsection (a)-(j) hereof have occurred or shall occur concurrently with the transfer and release of the Out Parcel; 
  
 (l) Borrower shall execute such documents and instruments and obtain such
opinions of counsel as are typical for similar transactions, including, if a Securitization shall have occurred, an opinion that the release of the Out Parcel will not be a “significant modification” of the Loan within the meaning of
Section 1.1001-3 of the regulations of the United States Department of the Treasury and that all other requirements applicable, if any, to the Securitization, have been satisfied or have not otherwise been violated; and 
  
 (m) If requested by Lender, Borrower shall obtain prior written confirmation
from the applicable Rating Agencies that the release of the Out Parcel will not cause a downgrade, withdrawal or qualification of the then current rating of the Securities or any class thereof. 
  
 Section 2.6 Lockbox Account/Cash Management. 

 
 2.6.1 Lockbox Account. (a) During the term of the
Loan, Borrower shall establish and maintain, with respect to each of the Lockbox Properties, an account (each, a 

  

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“Lockbox Account”) with Lockbox Bank in the trust for the benefit of Lender, which Lockbox Account shall be under the sole dominion and
control of Lender. Each Lockbox Account shall be entitled “WHP Hotel Owner-1, L.P., WHP Hotel Owner-2A, L.L.C. and WHP Hotel Owner-2B, L.L.C., as Borrower and Bear Stearns Commercial Mortgage, Inc., as Lender, pursuant to Loan Agreement dated
as of December 5, 2002 - Lockbox Account.” Borrower hereby grants to Lender a first-priority security interest in each Lockbox Account and all deposits at any time contained therein and the proceeds thereof and will take all actions necessary
to maintain in favor of Lender a perfected first priority security interest in each Lockbox Account, including, without limitation, executing and filing UCC-1 Financing Statements and continuations thereof. Lender and Servicer shall have the sole
right to make withdrawals from each Lockbox Account and all costs and expenses for establishing and maintaining each Lockbox Account shall be paid by Borrower. All monies now or hereafter deposited into any Lockbox Account shall be deemed additional
security for the Debt. 
  
 (b) Borrower shall, or shall cause
Operating Lessee or Manager to, deliver irrevocable written instructions to all tenants under Leases at the Lockbox Properties to deliver all Rents payable thereunder directly to the applicable Lockbox Account. Borrower shall, and shall cause
Manager and Operating Lessee to, deposit all amounts received by Borrower, Operating Lessee or Manager constituting Rents at the Lockbox Properties into the Lockbox Account within one (1) Business Day after receipt thereof. 
  
 (c) Borrower shall, or shall cause Operating Lessee to, obtain from each
Lockbox Bank its agreement to transfer to the Cash Management Account in immediately available funds by federal wire transfer all amounts on deposit in the applicable Lockbox Account once every Business Day throughout the term of the Loan.

  
 (d) Borrower shall, or shall cause Manager and/or Operating
Lessee to, deliver irrevocable written instructions to each of the credit card companies or credit card clearing banks with which Borrower, Operating Lessee or Manager has entered into merchant’s agreements to deliver all receipts payable with
respect to each Lockbox Property directly to the Lockbox Account. 
  
 (e) Upon the occurrence of an Event of Default, Lender may, in addition to any and all other rights and remedies available to Lender, apply any sums then present in any Lockbox Account to the payment of the Debt in any order in its sole
discretion. 
  
 (f) Each Lockbox Account shall be an Eligible
Account and shall not be commingled with other monies held by Borrower or Lockbox Bank. 
  
 (g) Borrower shall not further pledge, assign or grant any security interest in any Lockbox Account or the monies deposited therein or permit any lien or encumbrance to attach thereto, or any levy to be made thereon,
or any UCC-1 Financing Statements, except those naming Lender as the secured party, to be filed with respect thereto. 
  
 (h) Borrower shall indemnify Lender and hold Lender harmless from and against any and all actions, suits, claims, demands, liabilities, losses, damages,
obligations and costs and expenses (including litigation costs and reasonable attorneys fees and expenses) arising 

  

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from or in any way connected with each Lockbox Account and/or each Lockbox Agreement (unless arising from the gross negligence or willful misconduct of
Lender) or the performance of the obligations for which each such Lockbox Account was established. 
  
 2.6.2 Cash Management Account. (a) During the term of the Loan, Borrower shall establish and maintain a segregated Eligible Account
(the “Cash Management Account”) to be held by Agent in trust and for the benefit of Lender, which Cash Management Account shall be under the sole dominion and control of Lender. The Cash Management Account shall be entitled
“WHP Hotel Owner-1, L.P., as Borrower, for the benefit of Bear Stearns Commercial Mortgage, Inc., as Lender, pursuant to Loan Agreement dated as of December 5, 2002 - Cash Management Account”. Borrower hereby grants to Lender a first
priority security interest in the Cash Management Account and all deposits at any time contained therein and the proceeds thereof and will take all actions necessary to maintain in favor of Lender a perfected first priority security interest in the
Cash Management Account, including, without limitation, executing and filing UCC-1 Financing Statements and continuations thereof. Borrower will not in any way alter or modify the Cash Management Account and will notify Lender of the account number
thereof. Lender and Servicer shall have the sole right to make withdrawals from the Cash Management Account and all costs and expenses for establishing and maintaining the Cash Management Account shall be paid by Borrower. 
  
 (b) The insufficiency of funds on deposit in the Cash Management Account
shall not relieve Borrower from the obligation to make any payments, as and when due pursuant to this Agreement and the other Loan Documents, and such obligations shall be separate and independent, and not conditioned on any event or circumstance
whatsoever. All funds on deposit in the Cash Management Account following the occurrence of an Event of Default may be applied by Lender in such order and priority as Lender shall determine. 
  
 (c) Borrower shall, or shall cause Operating Lessee to, require each Manager
of each Individual Property that is not a Lockbox Property to promptly transfer all amounts payable to Borrower or Operating Lessee under the related Management Agreement and/or Franchise Agreement into the Cash Management Account throughout the
term of the Loan. 
  
 (d) During the first ten (10) days of each
calendar month and provided that no Event of Default, Mezzanine Loan Default or Junior Mezzanine Loan Default shall have occurred and be continuing, Lender shall deposit an amount equal to the lesser of (x) fifty percent (50%) of the Rents deposited
into the Cash Management Account during such period and (y) One Million Five Hundred Thousand Dollars ($1,500,000) (as such amount may be reduced pro rata in connection with any prepayment of the Loan pursuant to Section 2.4) into the
Operating Lessee Account (as defined in the Cash Management Agreement), which amounts shall be applied by Borrower or Operating Lessee to Operating Expenses pursuant to the Approved Annual Budget. 
  
 (e) Borrower shall provide evidence to Lender of the Debt Service Coverage
Ratio for the Properties on the Closing Date and within forty-five (45) days after the end of each calendar quarter (the “DSCR Determination Date”). If on any DSCR Determination Date the Debt Service Coverage Ratio for the twelve
(12) month period immediately preceding the end of such calendar quarter is less than the Default Determination Ratio (a “DSCR Excess Cash 

  

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Sweep Event”), Borrower shall (i) deposit with Lender all Excess Cash Flow in the Cash Management Account, or (ii) either (A) prepay the Loan in
accordance with Section 2.4.1 hereof, or (B) deposit with Lender (1) a cash escrow (which cash escrow shall be held in the Cash Management Account) or (2) a Letter of Credit in the case of either (A) or (B) in an amount that would result in
the achievement of the Default Determination Ratio for the preceding twelve (12) months based on the aggregate principal balances of the Loan, the Mezzanine Loan and the Junior Mezzanine Loan as reduced by an amount equal to such prepayment, Letter
of Credit or cash escrow. Provided that no Event of Default, Mezzanine Loan Default or Junior Mezzanine Loan Default shall have occurred and be continuing, any funds escrowed in accordance with (i) or (ii)(B) of the preceding sentence or Letter of
Credit delivered in accordance with clause (ii)(B)(2) of the preceding sentence shall be returned to Borrower if the Default Determination Ratio is achieved for two (2) consecutive DSCR Determination Dates without giving effect to any Letter of
Credit or escrowed amounts; provided, however, such funds shall be so returned to Borrower no more than four (4) times during the term of the Loan. No Event of Default shall occur by reason of this Section 2.6.2(e) so long as
Borrower deposits into the Cash Management Account the additional amounts required by this Section 2.6.2(e) and, provided that either of (A) or (B) of clause (ii) above is satisfied and no Event of Default has occurred and is continuing, no
DSCR Excess Cash Sweep Event shall be deemed to have occurred. All such deposit amounts shall be treated as a “Reserve Fund” for purposes of Section 7.7 hereof. All additional amounts deposited under this Section 2.6.2(e)
shall be additional security for the repayment of the Debt and may be withdrawn by Lender upon the occurrence of an Event of Default and applied by Lender in such order and priority as Lender may determine. All calculations of Debt Service Coverage
Ratio shall be subject to verification by Lender. 
  
 2.6.3
Payments Received Under the Cash Management Agreement. Notwithstanding anything to the contrary contained in this Agreement or the other Loan Documents, and provided no Event of Default has occurred and is continuing,
Borrower’s obligations with respect to the payment of the Monthly Debt Service Payment Amount and amounts required to be deposited into the Reserve Funds, if any, shall be deemed satisfied to the extent sufficient amounts are deposited in the
Cash Management Account to satisfy such obligations pursuant to the Cash Management Agreement (but exclusive of the amounts described in Section 2.6.2(e) above) on the dates each such payment is required, regardless of whether any of such
amounts are so applied by Lender. 
  
 Section 2.7
Extension of the Initial Maturity Date. Borrower shall have the option to extend the term of the Loan beyond the Initial Maturity Date for two (2) successive terms (each, an “Extension Option”) of one (1) year each
(the Initial Maturity Date following the exercise of each such option is hereinafter the “Extended Maturity Date”) upon satisfaction of the following terms and conditions: 
  
 (a) No Event of Default shall have occurred and be continuing at the time the
applicable Extension Option is exercised and on the date that the applicable extension term commences; 
  
 (b) Borrower shall provide Lender with written notice of its election to extend the Maturity Date as aforesaid not later than thirty (30) days and not
earlier than one hundred 

  

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twenty (120) days prior to the date the Loan is then scheduled to mature. Once given, such notice shall be irrevocable; 
  
 (c) If the Interest Rate Cap Agreement is scheduled to mature prior to the
applicable Extended Maturity Date, Borrower shall obtain and deliver to Lender not later than five (5) Business Days prior to the first day of each Extension Option, one or more Replacement Interest Rate Cap Agreements from an Acceptable
Counterparty which Replacement Interest Rate Cap Agreement shall (i) be effective commencing on the first date of such Extension Option, (ii) have a maturity date not earlier than the applicable Extended Maturity Date after giving effect to the
option then being exercised, and (iii) otherwise meet the requirements set forth in Section 2.2.7 hereof; and 
  
 (d) Borrower shall have delivered to Lender together with its notice pursuant to subsection (b) of this Section 2.7 and at Lender’s
reasonable request, on the commencement date of the applicable Extension Option, an Officer’s Certificate in form reasonably acceptable to the Lender certifying that, to such officer’s knowledge after diligent inquiry, each of the
representations and warranties of Borrower contained in the Loan Documents is true, complete and correct in all material respects as of the giving of the notice to the extent such representations and warranties are not matters which by their nature
can no longer be true and correct as a result of the passage of time. 
  

	 	III.	CONDITIONS PRECEDENT 

  
 Section 3.1 Conditions Precedent to Closing. The obligation of Lender to make the Loan hereunder is subject to the fulfillment by
Borrower or waiver by Lender of the following conditions precedent no later than the Closing Date: 
  
 3.1.1 Representations and Warranties; Compliance with Conditions. The representations and warranties of Borrower contained in this
Agreement and the other Loan Documents shall be true and correct in all material respects on and as of the Closing Date with the same effect as if made on and as of such date, and no Default or an Event of Default shall have occurred and be
continuing; and Borrower shall be in compliance in all material respects with all terms and conditions set forth in this Agreement and in each other Loan Document on its part to be observed or performed. 
  
 3.1.2 Loan Agreement and Note. Lender shall have
received a copy of this Agreement and the Note, in each case, duly executed and delivered on behalf of Borrower. 
  
 3.1.3 Delivery of Loan Documents; Title Insurance; Reports; Leases. 
  
 (a) Mortgages, Assignments of Leases. Lender shall have received from Borrower fully executed and acknowledged
counterparts of the Mortgages and the Assignments of Leases and evidence that counterparts of the Mortgages and Assignments of Leases have been delivered to the title company for recording, in the reasonable judgment of Lender, so as to effectively
create upon such recording valid and enforceable Liens upon each Individual Property, of the requisite priority, in favor of Lender (or such other trustee as may be required or desired under local law), subject only to the Permitted Encumbrances and
such other Liens as are 

  

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permitted pursuant to the Loan Documents. Lender shall have also received from Borrower fully executed counterparts of the other Loan Documents. 

 
 (b) Pledge Agreement. Lender shall have received from
Borrower fully executed and acknowledged counterparts of the Pledge Agreements and delivery of the Pledged Company Interests, the UCC Financing Statements and such other documents required pursuant to the Pledge Agreements in the reasonable judgment
of Lender, so as to effectively create valid and enforceable Liens upon the Collateral, of the requisite priority, in favor of Lender (or such other trustee as may be required or desired under local law), subject only to the Permitted Encumbrances
and such other Liens as are permitted pursuant to the Loan Documents. 
  
 (c) Title Insurance. Lender shall have received Title Insurance Policies issued by a title company acceptable to Lender and dated as of the Closing Date, with coinsurance or reinsurance and direct access agreements acceptable
to Lender. Such Title Insurance Policies shall (i) provide coverage in amounts satisfactory to Lender, (ii) insure Lender that the relevant Mortgage creates a valid lien on the Individual Property encumbered thereby of the requisite priority, free
and clear of all exceptions from coverage other than Permitted Encumbrances and standard exceptions and exclusions from coverage (as modified by the terms of any endorsements), (iii) contain such endorsements and affirmative coverages as Lender may
reasonably request, and (iv) name Lender as the insured. The Title Insurance Policies shall be assignable. Lender also shall have received evidence that all premiums in respect of such Title Insurance Policies have been paid. 
  
 (d) Survey. Lender shall have received a current Survey for
each Individual Property. Each such Survey shall reflect the same legal description contained in the Title Insurance Policies relating to such Individual Property referred to in clause (b) above and shall include, among other things, a metes and
bounds description of the real property comprising part of such Individual Property reasonably satisfactory to Lender. 
  
 (e) Insurance. Lender shall have received the policies of insurance required hereunder, satisfactory to Lender in its sole discretion, and
evidence of the payment of all premiums payable for the existing policy period. 
  
 (f) Environmental Reports. Lender shall have received a Phase I environmental report (and, if recommended by the Phase I environmental report, a Phase II environmental report) in respect of each
Individual Property, in each case satisfactory in form and substance to Lender. 
  
 (g) Zoning. With respect to each Individual Property, Lender shall have received (i) letters or other evidence with respect to each Individual Property from the appropriate municipal authorities (or
other Persons) concerning compliance with applicable zoning and building laws, and (ii) an ALTA 3.1 zoning endorsement for the applicable Title Insurance Policy (if available in the applicable State), in each case in substance reasonably
satisfactory to Lender. 
  
 (h) Encumbrances.
Borrower shall have taken or caused to be taken such actions in such a manner so that Lender has a valid and perfected first priority Lien as of the 

  

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Closing Date with respect to each Mortgage on the applicable Individual Property, subject only to applicable Permitted Encumbrances and such other Liens as
are permitted pursuant to the Loan Documents, and Lender shall have received satisfactory evidence thereof. 
  
 3.1.4 Related Documents. Each additional document not specifically referenced herein, but relating to the transactions contemplated
herein, shall be in form and substance reasonably satisfactory to Lender, and shall have been duly authorized, executed and delivered by all parties thereto and Lender shall have received and approved certified copies thereof. 
  
 3.1.5 Delivery of Organizational Documents. Borrower
shall deliver or cause to be delivered to Lender copies certified by Borrower of all organizational documentation related to Borrower and/or the formation, structure, existence, good standing and/or qualification to do business, as Lender may
request in its sole discretion, including, without limitation, amendments (as requested by Lender), good standing certificates, qualifications to do business in the appropriate jurisdictions, resolutions authorizing the entering into of the Loan and
incumbency certificates as may be requested by Lender. 
  
 3.1.6 Opinions of Borrower’s Counsel. Lender shall have received opinions from Borrower’s counsel (a) the Insolvency Opinion, (b) with respect to perfection of the Collateral, and (c) with respect to due
execution, authority, enforceability of the Loan Documents and such other matters as Lender may reasonably require, all such opinions in form, scope and substance reasonably satisfactory to Lender and Lender’s counsel in their sole discretion.

  
 3.1.7 Budgets. Borrower shall have
delivered, and Lender shall have approved, the Annual Budget for the current Fiscal Year. 
  
 3.1.8 Basic Carrying Costs. Borrower shall have paid all Basic Carrying Costs relating to the Properties which are in arrears, including without limitation, (a) accrued but unpaid Insurance
Premiums due pursuant to the Policies, (b) currently due Taxes (including any in arrears) relating to the Properties, and (c) currently due Other Charges relating to the Properties, which amounts shall be funded with proceeds of the Loan.

  
 3.1.9 Completion of Proceedings. All
organizational and other proceedings taken or to be taken in connection with the transactions contemplated by this Agreement and other Loan Documents and all documents incidental thereto shall be satisfactory in form and substance to Lender, and
Lender shall have received all such counterpart originals or certified copies of such documents as Lender may reasonably request. 
  
 3.1.10 Payments. All payments, deposits or escrows required to be made or established by Borrower under this Agreement, the Note and
the other Loan Documents on or before the Closing Date shall have been paid. 
  
 3.1.11 Tenant Estoppels. Lender shall have received an executed tenant estoppel letter, which shall be substantially the same in form and substance as that certain form of tenant estoppel
certificate attached as an exhibit to the Purchase Agreement, from (a) the licensor of the Don Shula’s Steak House restaurant operated at the Tyson’s Corner Property, 

  

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(b) the neighboring shopping mall with respect to the parking lot lease relating to the Valley River Inn Property, and (c) the licensor of the Don
Shula’s Steak House restaurant operated at the Troy Property. 
  
 3.1.12 Transaction Costs. Borrower shall have paid or reimbursed Lender for all title insurance premiums, recording and filing fees, costs of environmental reports, Physical Conditions Reports, appraisals and other
reports, the fees and costs of Lender’s counsel and all other third party out-of-pocket expenses incurred in connection with the origination and closing of the Loan. 
  
 3.1.13 Searches. Lender shall have received UCC, judgment, lien, bankruptcy and litigation searches
with respect to each Individual Property, the Collateral, Guarantor and the current owners of each Individual Property, which searches shall evidence the absence of any material litigation judgments, bankruptcies or liens other than such matters as
shall be satisfied, released or adequately insured over to Lender’s reasonable satisfaction. 
  
 3.1.14 Leases. Lender shall have received certified copies of all Leases and certified copies of all Ground Leases affecting any
Individual Property. 
  
 3.1.15 Tax Lot.
Lender shall have received evidence that each Individual Property constitutes one (1) or more separate tax lots, which evidence shall be reasonably satisfactory in form and substance to Lender. 
  
 3.1.16 Physical Conditions Report. Lender shall have
received a Physical Conditions Report with respect to each Individual Property, each of which reports shall be reasonably satisfactory in form and substance to Lender. 
  
 3.1.17 Management Agreements. Lender shall have received a certified copy of the Management Agreement
with respect to each Individual Property, each of which Management Agreements shall be either (a) substantively the same as those certain existing management agreements between the current owners of the Properties and the third-party managers not
affiliated with such current owners, or (b) reasonably satisfactory in form and substance to Lender. 
  
 3.1.18 Intentionally Omitted. 
  
 3.1.19 Intentionally Omitted. 
  
 3.1.20 Interest Rate Cap Agreement. Lender shall have received the Interest Rate Cap Agreement, in form reasonably acceptable to
Lender, from an Acceptable Counterparty. 
  
 3.1.21
Franchise Agreements. Lender shall have received a certified copy of the Franchise Agreement with respect to each Individual Property, each of which Franchise Agreements shall be either (a) substantively the same as those existing
franchise agreements under which the Properties are currently licensed and operated, or (b) reasonably satisfactory in form and substance to Lender. 
  

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 3.1.22 Equity Contribution. Lender shall have received evidence of the contribution
of cash equity by Guarantor in an aggregate amount of not less than $93,570,250 plus twenty-five percent (25%) of the Required PIP Amount for the first twelve (12) months of the term of the Loan. 
  
 3.1.23 Purchase Price. Lender shall have received
evidence that the purchase price paid by Affiliates of Borrower for the acquisition of the Properties by Borrower is not less than Three Hundred Fifty-Three Million Three Hundred Eighty-One Thousand Dollars ($353,381,000), exclusive of any closing
costs, PIPs or escrows incurred in connection with such acquisition, which evidence shall be reasonably satisfactory in form and substance to Lender. 
  
 3.1.24 Ground Lessor Estoppels. Lender shall have received an executed ground lessor estoppel from the ground lessor under each
Ground Lease, which shall be substantially the same as those attached to the Purchase Agreement. 
  
 3.1.25 Further Documents. Lender or its counsel shall have received such other documents and further approvals, opinions, documents
and information as Lender or its counsel may have reasonably requested including the Loan Documents in form and substance reasonably satisfactory to Lender and its counsel. 
  

	 	IV.	REPRESENTATIONS AND WARRANTIES 

  
 Section 4.1 Borrower Representations. Borrower represents and warrants as of the Closing Date (except as otherwise expressly
disclosed to Lender in writing prior to the Closing Date) that: 
  
 4.1.1 Organization. Borrower has been duly organized and is validly existing and in good standing with requisite power and authority to own its properties and to transact the businesses in which it is now engaged.
Borrower is duly qualified to do business and is in good standing in each jurisdiction where it is required to be so qualified in connection with its properties, businesses and operations. Borrower possesses all rights, licenses, permits and
authorizations, governmental or otherwise, necessary to entitle it to own its properties and to transact the businesses in which it is now engaged, and the sole business of Borrower is the ownership, management and operation of the Properties. The
ownership interests in Borrower are as set forth on the organizational chart attached hereto as Schedule IV. 
  
 4.1.2 Proceedings. Borrower has taken all necessary action to authorize the execution, delivery and performance of this Agreement and
the other Loan Documents. This Agreement and such other Loan Documents have been duly executed and delivered by or on behalf of Borrower and constitute legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with
their respective terms, subject only to applicable bankruptcy, insolvency and similar laws affecting rights of creditors generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law). 
  
 4.1.3 No
Conflicts. The execution, delivery and performance of this Agreement and the other Loan Documents by Borrower will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, or result in the
creation or imposition of 

  

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any lien, charge or encumbrance (other than pursuant to the Loan Documents) upon any of the property or assets of Borrower pursuant to the terms of any
indenture, mortgage, deed of trust, loan agreement, partnership agreement, management agreement or other agreement or instrument to which Borrower is a party or by which any of Borrower’s property or assets is subject, nor will such action
result in any violation of the provisions of any statute or any order, rule or regulation of any Governmental Authority having jurisdiction over Borrower or any of Borrower’s properties or assets, and any consent, approval, authorization,
order, registration or qualification of or with any court or any such Governmental Authority required for the execution, delivery and performance by Borrower of this Agreement or any other Loan Documents has been obtained and is in full force and
effect. 
  
 4.1.4 Litigation. There are no
actions, suits or proceedings at law or in equity by or before any Governmental Authority now pending or threatened against or affecting Borrower, Guarantor or Operating Lessee, or, to Borrower’s knowledge, the Collateral or any Individual
Property, which actions, suits or proceedings, if determined against Borrower, Guarantor, Operating Lessee, the Collateral or any Individual Property, would have a Material Adverse Effect. 
  
 4.1.5 Agreements. Borrower is not a party to any
agreement or instrument or subject to any restriction which would have a Material Adverse Effect. Borrower is not in default in any material respect in the performance, observance or fulfillment of any of the obligations, covenants or conditions
contained in any agreement or instrument to which it is a party or by which Borrower or any of the Properties is bound which default would have a Material Adverse Effect. Borrower has no material financial obligation under any indenture, mortgage,
deed of trust, loan agreement or other agreement or instrument to which Borrower is a party or by which Borrower or the Properties are otherwise bound, other than (a) obligations incurred in the ordinary course of the operation of the Properties in
accordance with the Loan Documents and (b) obligations under the Loan Documents. 
  
 4.1.6 Title. (a) Borrower has good, marketable and insurable fee simple title to the real property comprising part of each Individual Property and good title to the balance of such Individual
Property, free and clear of all Liens whatsoever except the Permitted Encumbrances, such other Liens as are permitted pursuant to the Loan Documents and the Liens created by the Loan Documents. The Permitted Encumbrances in the aggregate do not have
a Material Adverse Effect on the applicable Individual Property (as currently used) nor do they materially and adversely affect Borrower’s ability to repay the Loan. Each Mortgage, when properly recorded in the appropriate records, together
with any Uniform Commercial Code financing statements required to be filed in connection therewith, will create (i) a valid, perfected first priority lien on the applicable Individual Property, subject only to Permitted Encumbrances and the Liens
created by the Loan Documents and (ii) perfected security interests in and to, and perfected collateral assignments of, all personalty (including the Leases), all in accordance with the terms thereof, in each case subject only to any applicable
Permitted Encumbrances, such other Liens as are permitted pursuant to the Loan Documents and the Liens created by the Loan Documents. Except as otherwise set forth in the Title Insurance Policies, there are no claims for payment for work, labor or
materials affecting the Properties which are or, to Borrower’s knowledge, may become a Lien. 
  

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 (b) The Pledgor under each Pledge Agreement is the record and beneficial owner of, and has good and
marketable title to, the related Collateral, free and clear of all Liens whatsoever. Each Pledge Agreement, together with the UCC Financing Statements relating to the Collateral when properly filed in the appropriate records, will create a valid,
perfected first priority security interest in and to the related Collateral, all in accordance with the terms thereof for which a Lien can be perfected by filing a UCC Financing Statement. The delivery of the certificates to Lender as set forth in
Section 3 of each Pledge Agreement creates a first priority valid and perfected security interest in the related Collateral. 
  
 4.1.7 Solvency. Borrower has (a) not entered into this transaction or executed the Note, this Agreement or any other Loan Documents
with the actual intent to hinder, delay or defraud any creditor and (b) received reasonably equivalent value in exchange for its obligations under such Loan Documents. Giving effect to the Loan, the fair saleable value of Borrower’s assets
exceeds and will, immediately following the making of the Loan, exceed Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed and contingent liabilities. The fair saleable value of Borrower’s
assets is and will, immediately following the making of the Loan, be greater than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on its debts as such debts become absolute and matured.
Borrower’s assets do not and, immediately following the making of the Loan will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe
that it will, incur debt and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such debt and liabilities as they mature (taking into account the timing and amounts of cash to be received by Borrower and
the amounts to be payable on or in respect of obligations of Borrower). No petition in bankruptcy has been filed against Borrower or any Affiliate in the last seven (7) years, and neither Borrower nor any Affiliate in the last seven (7) years has
ever made an assignment for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. Neither Borrower nor any of its Affiliates are contemplating either the filing of a petition by it under any state or federal
bankruptcy or insolvency laws or the liquidation of all or a major portion of Borrower’s assets or property, and, to Borrower’s knowledge, no Person is contemplating the filing of any such petition against it or such Affiliates.

  
 4.1.8 Full and Accurate Disclosure. No
statement of fact made by Borrower in this Agreement or in any of the other Loan Documents contains any untrue statement of a material fact or omits to state any material fact necessary to make statements contained herein or therein accurate,
complete and correct in all material respects and not materially misleading. There is no material fact presently known to Borrower which has not been disclosed to Lender which would result in a Material Adverse Effect. 
  
 4.1.9 No Plan Assets. Each of Borrower and Operating
Lessee has no liability with respect to any “employee benefit plan” as defined in Section 3(3) of ERISA that would result in a Material Adverse Effect. Neither Borrower nor Operating Lessee is itself an “employee benefit plan,”
as defined in Section 3(3) of ERISA, subject to Title I of ERISA or Section 4975 of the Code, and none of the assets of Borrower constitutes or will constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section
2510.3-101. In addition, (a) neither Borrower nor Operating Lessee is a “governmental plan” within the meaning of Section 3(32) of ERISA and (b) transactions by or with Borrower or Operating Lessee are not 

  

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subject to any state or other statute, regulation or other restriction regulating investments of, or fiduciary obligations with respect to, governmental
plans within the meaning of Section 3(32) of ERISA which is similar to the provisions of Section 406 of ERISA or Section 4975 of the Code and which prohibit or otherwise restrict the transactions contemplated by this Agreement, including, but not
limited to the exercise by Lender of any of its rights under the Loan Documents. 
  
 4.1.10 Compliance. Except as otherwise expressly set forth in the Physical Conditions Reports and the Phase I (and Phase II, if any) environmental reports, Borrower and the Properties and the use
thereof comply with all applicable Legal Requirements, including, without limitation, building and zoning ordinances and codes except for such noncompliance that would not have a Material Adverse Effect. To Borrower’s knowledge, Borrower is not
in any material default or violation of any written order, writ, injunction, decree or demand of any Governmental Authority, except where the failure to do so would not have a Material Adverse Effect. There has not been committed by Borrower or, to
Borrower’s knowledge, any other Person in occupancy of or involved with the operation or use of the Properties any act or omission affording the federal government or any other Governmental Authority the right of forfeiture as against any
Individual Property or any part thereof or any monies paid in performance of Borrower’s obligations under any of the Loan Documents. 
  
 4.1.11 Financial Information. To Borrower’s knowledge, all financial data, including, without limitation, the statements of cash
flow and income and operating expense, that have been delivered to Lender in connection with the Loan (a) are true, complete and correct in all material respects, (b) present fairly the financial condition of Borrower, the Collateral and the
Properties, as applicable, as of the date of such reports, and (c) 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 Borrower’s knowledge, except for Permitted Encumbrances, Borrower does not have any contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable
commitments that are known to Borrower and would have a Material Adverse Effect, except as referred to or reflected in said financial statements. 
  
 4.1.12 Condemnation. Except as otherwise disclosed in the applicable Title Insurance Policy, no Condemnation or other proceeding has
been commenced or, to Borrower’s knowledge, is threatened or contemplated with respect to all or any portion of any Individual Property or for the relocation of roadways providing access to any Individual Property. 
  
 4.1.13 Federal Reserve Regulations. No part of the
proceeds of the Loan will be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose which would be inconsistent
with such Regulation U or any other Regulations of such Board of Governors, or for any purposes prohibited by Legal Requirements or by the terms and conditions of this Agreement or the other Loan Documents. 
  
 4.1.14 Utilities and Public Access. To Borrower’s
knowledge and except as set forth in the applicable Survey or Title Insurance Policy (a) each Individual Property has rights of access to public ways and is served by water, sewer, sanitary sewer and storm drain facilities 

  

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adequate to service such Individual Property for its respective intended uses, (b) all public utilities necessary or convenient to the full use and enjoyment
of each Individual Property are located either in the public right-of-way abutting such Individual Property (which are connected so as to serve such Individual Property without passing over other property) or in recorded easements serving such
Individual Property and such easements are set forth in and insured by the Title Insurance Policies, and (c) all roads necessary for the use of each Individual Property for their current respective purposes have been completed and dedicated to
public use and accepted by all Governmental Authorities. 
  
 4.1.15 Not a Foreign Person. Borrower is not a “foreign person” within the meaning of §1445(f)(3) of the Code. 
  
 4.1.16 Separate Lots. Each Individual Property is comprised of one (1) or more parcels which constitute a separate tax lot or lots
and does not constitute a portion of any other tax lot not a part of such Individual Property. 
  
 4.1.17 Assessments. To Borrower’s knowledge and except as set forth in the applicable Title Insurance Policy, there are no pending or proposed special or other assessments for public
improvements or otherwise affecting any Individual Property, nor are there any contemplated improvements to any Individual Property that could reasonably be expected to result in such special or other assessments. 
  
 4.1.18 Enforceability. The Loan Documents are not
subject to any right of rescission, set-off, counterclaim or defense by Borrower, Operating Lessee, Limited Guarantor or 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 neither
Borrower, Operating Lessee, Limited Guarantor nor Guarantor have asserted any right of rescission, set-off, counterclaim or defense with respect thereto. 
  
 4.1.19 No Prior Assignment. To Borrower’s knowledge, there are no prior assignments of the Leases or any portion of the Rents
due and payable or to become due and payable which are presently outstanding. 
  
 4.1.20 Insurance. Borrower has obtained and has delivered to Lender certified copies of the Policies reflecting the insurance coverages, amounts and other requirements set forth in this Agreement.
No claims have been made or are currently pending, outstanding or otherwise remain unsatisfied under any such Policy, and neither Borrower nor, to Borrower’s knowledge, any other Person, has done, by act or omission, anything which would
materially impair the coverage of any such Policy. 
  
 4.1.21
Use of Property. Each Individual Property is used for hotel purposes and other appurtenant and related uses with the exception of the office building located at the Radisson Englewood Individual Property. 
  
 4.1.22 Certificate of Occupancy; Licenses. To
Borrower’s knowledge, all certifications, permits, licenses and approvals, including without limitation, certificates of 

  

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completion and occupancy permits and any applicable liquor license required for the legal use, occupancy and operation of each Individual Property as a hotel
and for such other uses as permitted pursuant to this Agreement (collectively, the “Licenses”), have been obtained and are in full force and effect, except for (a) liquor licenses that cannot be assigned to Borrower on the Closing
Date, but under which Borrower has the right to continue operating after the Closing Date pursuant to those certain Liquor License Agreements, and (b) where the failure to obtain such licenses or for such licenses to not be in full force and effect
does not have a Material Adverse Effect. Borrower shall keep and maintain all Licenses necessary for the operation of each Individual Property as a hotel and as presently operated. To Borrower’s knowledge, the use being made of each Individual
Property is in conformity with the certificate of occupancy issued for such Individual Property. Each Liquor License Agreement is in full force and effect and there is no material default, breach or violation existing thereunder by Borrower or the
applicable licensee thereunder and no event has occurred that, with the passage of time or the giving of notice, or both, would constitute a default, breach or violation by any party thereunder. The terms and provisions of the Liquor License
Agreements are subordinate to this Agreement and the Mortgages. Neither the execution and delivery of the Loan Documents, Borrower’s performance thereunder, nor the exercise of any remedies by Lender, will adversely affect Borrower’s
rights under the Liquor License Agreements. 
  
 4.1.23
Flood Zone. Except as shown on the applicable Survey, none of the Improvements on any Individual Property are located in an area as identified by the Federal Emergency Management Agency as an area having special flood hazards and,
if so located, the flood insurance required pursuant to Section 6.1(a)(i) is in full force and effect with respect to each such Individual Property. 
  
 4.1.24 Physical Condition. To Borrower’s knowledge and except as expressly set forth in the applicable Physical Conditions
Report: (a) each Individual Property, including, without limitation, all buildings, improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment,
elevators, exterior sidings and doors, landscaping, irrigation systems and all structural components, are in good condition, order and repair in all material respects; and (b) there exists no structural or other material defects or damages in any
Individual Property and Borrower has not received notice from any insurance company or bonding company of any defects or inadequacies in any Individual Property, or any part thereof, which would adversely affect the insurability of the same or cause
the imposition of extraordinary premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond. 
  
 4.1.25 Boundaries. To Borrower’s knowledge and except as expressly set forth in the applicable Survey, Title Insurance Policy or
Physical Conditions Report, all of the material improvements which were included in determining the appraised value of each Individual Property lie wholly within the boundaries and building restriction lines of such Individual Property, and no
improvements on adjoining properties encroach upon such Individual Property, and no easements or other encumbrances upon the applicable Individual Property encroach upon any of the Improvements, so as to have a Material Adverse Effect except those
which are insured against by the applicable Title Insurance Policy. 
  

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 4.1.26 Leases. The Properties are not subject to any leases other than the Leases specified
in the related Title Insurance Policy. Borrower is the owner and lessor of landlord’s interest in the Leases. The current Leases are in full force and effect and there are no defaults thereunder by either party and there are no conditions that,
with the passage of time or the giving of notice, or both, would constitute defaults thereunder, except for such defaults that would not have a Material Adverse Effect. To Borrower’s knowledge: (a) no Person has any possessory interest in any
Individual Property or right to occupy the same except under and pursuant to the provisions of the Leases; (b) no Rent (including security deposits) has been paid more than one (1) month in advance of its due date; (c) all work to be performed by
Borrower under each Lease has been substantially performed as required and has been accepted by the applicable tenant, and any payments, free rent, partial rent, rebate of rent or other payments, credits, allowances or abatements required to be
given by Borrower to any tenant has already been received by such tenant; (d) there has been no prior sale, transfer or assignment, hypothecation or pledge of any Lease or of the Rents received therein; (e) in each case, unless otherwise indicated
thereon, no tenant listed on Schedule II has assigned its Lease or sublet all or any portion of the premises demised thereby, no such tenant holds its leased premises under assignment or sublease, nor does anyone except such tenant and its
employees occupy such leased premises; (f) no Lease with respect to hotel rooms or residential space has a term of more than thirty (30) days; and (g) except as disclosed in the environmental reports delivered in connection with the Loan no
hazardous wastes or toxic substances, as defined by applicable federal, state or local statutes, rules and regulations, have been disposed, stored or treated by any tenant under any Lease on or about the leased premises nor does Borrower have any
knowledge of any tenant’s intention to use its leased premises for any activity which, directly or indirectly, involves the use, generation, treatment, storage, disposal or transportation of any petroleum product or any toxic or hazardous
chemical, material, substance or waste. Except with respect to the Out Parcel, no tenant under any Lease has a right or option pursuant to such Lease or otherwise to purchase all or any part of the leased premises or the building of which the leased
premises are a part. 
  
 4.1.27 Survey. To
Borrower’s knowledge, the Survey for each Individual Property delivered to Lender in connection with this Agreement does not fail to reflect any material matter affecting such Individual Property or the title thereto. 
  
 4.1.28 Inventory. Borrower and Operating Lessee are the
owners of all of the Equipment, Fixtures and Personal Property (as such terms are defined in the Mortgages) located on or at each Individual Property and shall not lease any such Equipment, Fixtures or Personal Property other than as permitted
hereunder. All of the Equipment, Fixtures and Personal Property are sufficient to operate the Properties in the manner required hereunder and in the manner in which they are currently operated. 
  
 4.1.29 Filing and Recording Taxes. All transfer taxes,
deed stamps, intangible taxes or other amounts in the nature of transfer taxes due and required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the transfer of the Properties to Borrower have been
paid, except where the failure to pay such amount would not have a Material Adverse Effect. All mortgage, mortgage recording, stamp, intangible or other similar tax required to be paid by any Person under applicable Legal Requirements currently in
effect in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of the Loan Documents, including, without limitation, the Mortgages and the 

  

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Pledge Agreements, have been paid, and, under current Legal Requirements, each of the Mortgages and the Pledge Agreements is enforceable in accordance with
their respective terms by Lender (or any subsequent holder thereof), subject to principles of equity and bankruptcy, insolvency and other laws generally applicable to creditors’ rights and the enforcement of debtors’ obligations.

  
 4.1.30 Special Purpose
Entity/Separateness. (a) Until the Debt has been paid in full, Borrower hereby represents, warrants and covenants that (i) each Individual Borrower is, shall be and shall continue to be a Special Purpose Entity, (ii) each Operating Lessee
is, shall be and shall continue to be a Special Purpose Entity and (iii) Principal is, shall be and shall continue to be a Special Purpose Entity. 
  
 (b) The representations, warranties and covenants set forth in Section 4.1.30(a) shall survive for so long as any amount remains payable to Lender
under this Agreement or any other Loan Document. 
  
 (c) All of
the assumptions made in the Insolvency Opinion, including, but not limited to, any exhibits attached thereto, are true and correct in all respects and any assumptions made in any subsequent non-consolidation opinion required to be delivered in
connection with the Loan Documents (an “Additional Insolvency Opinion”), including, but not limited to, any exhibits attached thereto, will have been and shall be true and correct in all respects. Borrower has complied
and will comply with, and Operating Lessee and Principal have complied and Borrower will cause Operating Lessee and Principal to comply with, all of the assumptions made with respect to Borrower, Operating Lessee and Principal in the Insolvency
Opinion. Borrower will have complied and will comply with all of the assumptions made with respect to Borrower, Operating Lessee and Principal in any Additional Insolvency Opinion. Each entity other than Borrower, Operating Lessee and Principal with
respect to which an assumption shall be made in any Additional Insolvency Opinion will have complied and will comply with all of the assumptions made with respect to it in any Additional Insolvency Opinion. 
  
 4.1.31 Management Agreement. Each Management Agreement
is in full force and effect and there is no known material default thereunder by any party thereto and, to Borrower’s knowledge, no event has occurred that, with the passage of time and/or the giving of notice would constitute a material
default thereunder. 
  
 4.1.32 Illegal
Activity. No portion of any Individual Property has been or will be purchased by Borrower or any Affiliate of Borrower with proceeds of any illegal activity. 
  
 4.1.33 No Change in Facts or Circumstances; Disclosure. To Borrower’s knowledge, all information
submitted by and on behalf of Borrower to Lender and in all financial statements, rent rolls (including all rent and financial information relating to the Leases listed on Schedule IX), reports, certificates and other documents submitted in
connection with the Loan or in satisfaction of the terms thereof is accurate, complete and correct in all material respects. 
  
 4.1.34 Investment Company Act. Borrower is not (a) an “investment company” or a company “controlled” by an
“investment company,” within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding company” or a “subsidiary company” of a 

  

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“holding company” or an “affiliate” of either a “holding company” or a “subsidiary company” within the meaning of the
Public Utility Holding Company Act of 1935, as amended; or (c) subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money. 
  
 4.1.35 Embargoed Person. As of the date hereof and at all times throughout the term of the Loan,
including after giving effect to any Transfers permitted pursuant to the Loan Documents, (a) none of the funds or other assets of Borrower, Principal, Operating Lessee, Limited Guarantor and 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 Borrower, Principal, Operating Lessee, Limited Guarantor or Guarantor, as applicable (whether directly or
indirectly), is prohibited by law or the Loan made by Lender is in violation of law (an “Embargoed Person”); (b) no Embargoed Person has any interest of any nature whatsoever in Borrower, Principal, Operating Lessee,
Limited Guarantor or Guarantor, as applicable, with the result that the investment in Borrower, Principal, Operating Lessee, Limited Guarantor or 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 Borrower, Principal, Operating Lessee, Limited Guarantor or Guarantor, as applicable, have been derived from any unlawful activity with the result that the investment in Borrower, Principal, Operating
Lessee, Limited Guarantor or Guarantor, as applicable (whether directly or indirectly), is prohibited by law or the Loan is in violation of law. 
  
 4.1.36 Principal Place of Business; State of Organization. Borrower’s principal place of business as of the date hereof is the
address set forth in the introductory paragraph of this Agreement. Each Individual Borrower is organized under the laws of the State of Delaware. 
  
 4.1.37 Mortgage Taxes. Borrower represents that it has paid all state, county and municipal recording and all other taxes imposed
upon the execution and recordation of the Mortgages. 
  
 4.1.38
Cash Management Account. (a) This Agreement, together with the other Loan Documents, creates a valid and continuing security interest (as defined in the Uniform Commercial Code of the State of Delaware) in each Lockbox Account and
the Cash Management Account in favor of Lender, which security interest is prior to all other Liens, other than Permitted Encumbrances, and is enforceable as such against creditors of and purchasers from Borrower. Other than in connection with the
Loan Documents and except for Permitted Encumbrances, Borrower has not sold, pledged, transferred or otherwise conveyed the Lockbox Accounts and Cash Management Account; 
  
 (b) Each of the Lockbox Account and Cash Management Account constitute “deposit accounts” within the meaning of
the Uniform Commercial Code of the State of Delaware); 
  

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 (c) Pursuant and subject to the terms hereof, each Lockbox Bank and Agent have agreed to comply with all
instructions originated by Lender, without further consent by Borrower, directing disposition of the Lockbox Accounts and Cash Management Account and all sums at any time held, deposited or invested therein, together with any interest or other
earnings thereon, and all proceeds thereof (including proceeds of sales and other dispositions), whether accounts, general intangibles, chattel paper, deposit accounts, instruments, documents or securities; and 
  
 (d) The Lockbox Accounts and Cash Management Account are not in the name of
any Person other than Borrower (or Manager, as agent for Borrower), as pledgor, or Lender, as pledgee. Borrower has not consented to the Lockbox Banks and Agent complying with instructions with respect to the Lockbox Accounts and Cash Management
Account from any Person other than Lender. 
  
 4.1.39
Franchise Agreements. Each Franchise Agreement is in full force and effect and there is no known material default thereunder by any party thereto and, to Borrower’s knowledge, no event has occurred that, with the passage of
time and/or giving of notice, would constitute a material default thereunder. 
  
 4.1.40 Ground Leases. With respect to each Ground Lease: 
  
 (a) Recording; Modification. A memorandum of the Ground Lease has been duly recorded. The Ground Lease permits the interest of Borrower to
be encumbered by a mortgage (provided that the mortgage is at all times subject and subordinate to the Ground Lease) or the Ground Lessor has approved and consented to the encumbrance of the Property by the Mortgage. The Ground Lease may not be
terminated, surrendered or amended without the prior written consent of Lender, which consent shall not be unreasonably withheld or delayed; provided that Ground Lessor shall not be prevented from exercising its remedies in accordance with
the Ground Lease if the obligations of Borrower under the Ground Lease are not performed as provided in the Ground Lease. 
  
 (b) No Liens. Except for the Permitted Encumbrances and other encumbrances of record, Borrower’s interest in the Ground Lease is not
subject to any Liens or encumbrances superior to, or of equal priority with, the Mortgage other than the ground lessor’s related fee interest and, with respect to the Ground Lease relating to the Individual Property located in Englewood, New
Jersey, any lien or encumbrance affecting such fee interest provided that nondisturbance rights have been granted to the related Individual Borrower and Operating Lessee under such Ground Lease. 
  
 (c) Ground Lease Assignable. Borrower’s interest in the
Ground Lease is assignable without the consent of the Ground Lessor to Lender, the purchaser at any foreclosure sale or the transferee under a deed or assignment in lieu of foreclosure in connection with the foreclosure of the Lien of the Mortgage
or transfer of Borrower’s leasehold state by deed or assignment in lieu of foreclosure. Thereafter, the Ground Lease relating to the Individual Property located in Englewood, New Jersey is further assignable by such transferee and its
successors and assigns with the consent of the Ground Lessor which consent shall not be 

  

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unreasonably withheld provided that certain conditions set forth in the related Ground Lease are met. 
  
 (d) Default. As of the date hereof, the Ground Lease is in full
force and effect and no default has occurred under the Ground Lease and there is no existing condition which, but for the passage of time or the giving of notice, would reasonably be expected to result in a default under the terms of the Ground
Lease. 
  
 (e) Notice. The Ground Lease requires the
Ground Lessor to give notice of any default by Borrower to Lender prior to exercising its remedies thereunder. 
  
 (f) Cure. Lender is permitted the opportunity (including, where necessary, sufficient time to gain possession of the interest of Borrower
under the Ground Lease) to cure any default under the Ground Lease, which is curable after the receipt of notice of any of the default before the Ground Lessor thereunder may terminate the Ground Lease. 
  
 (g) Term. The Ground Lease has a term which extends not less
than twenty (20) years beyond the Maturity Date. 
  
 (h) New
Lease. The Ground Lease requires the Ground Lessor to enter into a new lease upon termination of the Ground Lease for any reason, including rejection or disaffirmation of the Ground Lease in a bankruptcy proceeding. 
  
 (i) Insurance Proceeds. Under the terms of the Ground Lease and
the Mortgage, taken together, any related insurance and condemnation proceeds that are paid or awarded with respect to the leasehold interest will be applied either to the repair or restoration of all or part of the related Individual Property, with
Lender having the right to hold and disburse the proceeds as the repair or restoration progresses, or to the payment of the outstanding principal balance of the Loan together with any accrued interest thereon. 
  
 4.1.41 Single Purpose; Borrower’s Prior Acts.
Except as provided in or required by prior financings secured by the Troy Property, Borrower 2A hereby represents and warrants to Lender that: 
  
 (a) Since its formation, Borrower 2A has not owned any asset or property other than (i) such Individual Property, and (ii) incidental personal property
necessary for the ownership, lease management and operation of such Individual Property. 
  
 (b) Since its formation, Borrower 2A has not engaged in any business other than the ownership, lease, management and operation of such Individual Property. 
  
 (c) Since its formation, Borrower 2A has not guaranteed or become obligated for the debts of any other Person and has not
held itself out to be responsible for or to have its credit available to satisfy the debts or obligations of any other Person (other than in connection with a prior mortgage loan). 
  

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 (d) Borrower 2A is presently conducting its business so that the assumptions made with respect to it in
the Insolvency Opinion are currently true and correct in all material respects. 
  
 4.1.42 Operating Leases. Each Operating Lease is in full force and effect and there is no material default, breach or violation existing thereunder by Borrower or the applicable Operating Lessee
thereunder and no event has occurred that, with the passage of time or the giving of notice, or both, would constitute a default, breach or violation by any party thereunder. The terms and provisions of the Operating Leases, are subordinate to this
Agreement and the Mortgages. Neither the execution and delivery of the Loan Documents, Borrower’s performance thereunder, nor the exercise of any remedies by Lender, will adversely affect Borrower’s rights under the Operating Leases. On or
before the first anniversary of the Closing Date, Borrower will have been the payee with respect to a cumulative aggregate amount of FF&E Debt (as defined in the Operating Lease) of at least Thirty-Six Million Dollars ($36,000,000). 

 
 Section 4.2 Survival of Representations. Borrower
agrees that all of the representations and warranties of Borrower set forth in Section 4.1 hereof and elsewhere in this Agreement and in the other Loan Documents shall survive for so long as any amount remains owing to Lender under this
Agreement or any of the other Loan Documents by Borrower. All representations, warranties, covenants and agreements made in this Agreement or in the other Loan Documents by Borrower shall be deemed to have been relied upon by Lender notwithstanding
any investigation heretofore or hereafter made by Lender or on its behalf. 
  
 Section 4.3 Knowledge and Other Matters. Whenever the term “to Borrower’s knowledge” or any similar phrase is used in this Agreement or any other Loan Document, the same shall mean
the actual knowledge, after due inquiry and investigation, of (a) Borrower, and (b) each Affiliated Manager with respect to the Properties it manages. 
  

	 	V.	BORROWER COVENANTS 

  
 Section 5.1 Affirmative Covenants. From the Closing Date and until payment and performance in full of all obligations of Borrower
under the Loan Documents or the earlier release of the Liens of the Mortgages encumbering the Properties (and all related obligations) in accordance with the terms of this Agreement and the other Loan Documents, Borrower hereby covenants and agrees
with Lender that: 
  
 5.1.1 Existence; Compliance
with Legal Requirements. Borrower shall, and shall cause each of its Affiliates to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its existence, rights, licenses, permits and franchises and
comply with all Legal Requirements applicable to it, Operating Lessee, the Collateral and the Properties. There shall never be committed by Borrower, and Borrower shall never permit any other Person in occupancy of or involved with the operation or
use of the Properties to commit any act or omission affording the federal government or any state or local government the right of forfeiture against any Individual Property or any part thereof, the Collateral or any monies paid in performance of
Borrower’s obligations under any of the Loan Documents. Borrower hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording such right of forfeiture. Borrower shall at all times maintain, preserve and
protect all franchises and 

  

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trade names and preserve all the remainder of its property used or useful in the conduct of its business and shall keep the Properties in good working order
and repair, and from time to time make, or cause to be made, all reasonably necessary repairs, renewals, replacements, betterments and improvements thereto, all as more fully provided in the Mortgages. Borrower shall keep the Properties insured at
all times by financially sound and reputable insurers, to such extent and against such risks, and maintain liability and such other insurance, as is more fully provided in this Agreement. Borrower shall operate any Individual Property that is the
subject of the O&M Agreement in accordance with the terms and provisions thereof in all material respects. After prior written notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding promptly initiated and
conducted in good faith and with due diligence, the validity of any Legal Requirement, the applicability of any Legal Requirement to Borrower, Operating Lessee or any Individual Property or any alleged violation of any Legal Requirement,
provided that (i) no Default or Event of Default has occurred and remains uncured; (ii) Borrower is permitted to do so under the provisions of any mortgage or deed of trust superior in lien to the applicable Mortgage; (iii) such proceeding
shall be permitted under and be conducted in accordance with the provisions of any instrument to which Borrower is subject and shall not constitute a default thereunder and such proceeding shall be conducted in accordance with all applicable
statutes, laws and ordinances; (iv) the Collateral and no Individual Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost; (v) Borrower shall promptly upon final determination
thereof comply with any such Legal Requirement determined to be valid or applicable or cure any violation of any Legal Requirement; (vi) such proceeding shall suspend the enforcement of the contested Legal Requirement against Borrower, Operating
Lessee, the Collateral or any Individual Property; and (vii) Borrower shall furnish such security as may be required in the proceeding, or as may be requested by Lender, to insure compliance with such Legal Requirement, together with all interest
and penalties payable in connection therewith. Lender may apply any such security, as necessary to cause compliance with such Legal Requirement at any time when, in the reasonable judgment of Lender, the validity, applicability or violation of such
Legal Requirement is finally established or the Collateral or any Individual Property (or any part thereof or interest therein) shall be in danger of being sold, forfeited, terminated, cancelled or lost. 
  
 5.1.2 Taxes and Other Charges. Borrower shall pay all
Taxes and Other Charges now or hereafter levied or assessed or imposed against the Properties or any part thereof as the same become due and payable; provided, however, Borrower’s obligation to directly pay Taxes shall be
suspended for so long as Borrower complies with the terms and provisions of Section 7.2 hereof or contests such Taxes or Other Charges pursuant to Section 5.1.2 hereof. Borrower will deliver to Lender receipts for payment or other
evidence reasonably satisfactory to Lender that the Taxes and Other Charges have been so paid or are not then delinquent no later than ten (10) days prior to the date on which the Taxes and/or Other Charges would otherwise be delinquent if not paid.
Borrower shall furnish to Lender receipts for the payment of the Taxes and the Other Charges prior to the date the same shall become delinquent (provided, however, that Borrower is not required to furnish such receipts for payment of Taxes in the
event that such Taxes have been paid by Lender pursuant to Section 7.2 hereof). Borrower shall not suffer and shall promptly cause to be paid and discharged any Lien or charge whatsoever which may be or become a Lien or charge against the
Properties, and shall promptly pay for all utility services provided to the Properties. After prior written notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding, promptly initiated and conducted in good faith
and 

  

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with due diligence, the amount or validity or application in whole or in part of any Taxes or Other Charges, provided that (i) no Default or Event of
Default has occurred and remains uncured; (ii) Borrower is permitted to do so under the provisions of any mortgage or deed of trust superior in lien to the applicable Mortgage; (iii) such proceeding shall be permitted under and be conducted in
accordance with the provisions of any other instrument to which Borrower is subject and shall not constitute a default thereunder and such proceeding shall be conducted in accordance with all applicable statutes, laws and ordinances; (iv) neither
the Collateral nor any Individual Property nor any part thereof or interest therein will be in imminent danger of being sold, forfeited, terminated, cancelled or lost; (v) Borrower shall promptly upon final determination thereof pay the amount of
any such Taxes or Other Charges, together with all costs, interest and penalties which may be payable in connection therewith; (vi) such proceeding shall suspend the collection of such contested Taxes or Other Charges from the applicable Individual
Property; and (vii) Borrower shall furnish such security as may be required in the proceeding, or as may be reasonably requested by Lender, to insure the payment of any such Taxes or Other Charges, together with all interest and penalties thereon.
Lender may pay over any such cash deposit or part thereof held by Lender to the claimant entitled thereto at any time when, in the judgment of Lender, the entitlement of such claimant is established or any Individual Property (or part thereof or
interest therein) shall be in danger of being sold, forfeited, terminated, cancelled or lost or there shall be any danger of the Lien of any Mortgage being primed by any related Lien. 
  
 5.1.3 Litigation. Borrower shall give prompt written notice to Lender of any litigation or governmental
proceedings pending or threatened against the Properties, the Collateral, Borrower, Operating Lessee, Limited Guarantor and/or Guarantor which would reasonably be expected to have a Material Adverse Effect if decided adversely to Borrower, Operating
Lessee, Limited Guarantor and/or Guarantor. 
  
 5.1.4
Access to Properties. Borrower shall permit agents, representatives and employees of Lender to inspect the Properties or any part thereof at reasonable hours upon reasonable advance notice. 
  
 5.1.5 Notice of Default. Borrower and Operating Lessee
shall promptly advise Lender of any material adverse change in Borrower’s or Operating Lessee’s condition, financial or otherwise, or of the occurrence of any Default or Event of Default of which Borrower or Operating Lessee has knowledge.

  
 5.1.6 Cooperate in Legal Proceedings.
Borrower shall cooperate fully with Lender with respect to any proceedings before any court, board or other Governmental Authority which may in any way affect the rights of Lender hereunder or any rights obtained by Lender under any of the other
Loan Documents and, in connection therewith, permit Lender, at its election, to participate in any such proceedings. 
  
 5.1.7 Perform Loan Documents. Borrower shall observe, perform and satisfy all the terms, provisions, covenants and conditions of, and
shall pay when due all costs, fees and expenses to the extent required under the Loan Documents executed and delivered by, or applicable to, Borrower. 
  

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 5.1.8 Award and Insurance Benefits. Borrower shall cooperate with Lender in
obtaining for Lender the benefits of any Awards or Insurance Proceeds lawfully or equitably payable in connection with any Individual Property, and Lender shall be reimbursed for any expenses incurred in connection therewith (including
attorneys’ fees and disbursements, and the payment by Borrower of the expense of an appraisal on behalf of Lender in case of Casualty or Condemnation affecting any Individual Property or any part thereof) out of such Insurance Proceeds.

  
 5.1.9 Further Assurances. Borrower shall,
at Borrower’s sole cost and expense: 
  
 (a) furnish to
Lender all instruments, documents, boundary surveys, footing or foundation surveys, certificates, plans and specifications, appraisals, title and other insurance reports and agreements, and each and every other document, certificate, agreement and
instrument required to be furnished by Borrower pursuant to the terms of the Loan Documents or which are reasonably requested by Lender in connection therewith; 
  

(b) execute and deliver to Lender such documents, instruments, certificates, assignments and other writings, and do such other acts necessary or
desirable, to evidence, preserve and/or protect the collateral at any time securing or intended to secure the obligations of Borrower under the Loan Documents, as Lender may reasonably require, including, without limitation, the execution and
delivery of all such writings necessary to transfer any liquor licenses with respect to the Properties into the name of Lender or its designee after the occurrence of an Event of Default; and 
  
 (c) do and execute all and such further lawful and reasonable acts,
conveyances and assurances for the better and more effective carrying out of the intents and purposes of this Agreement and the other Loan Documents, as Lender shall reasonably require from time to time. 
  
 5.1.10 Principal Place of Business, State of
Organization. Borrower will not cause or permit any change to be made in its name, identity (including its trade name or names), place of organization or formation (as set forth in Section 4.1.36 hereof) or Borrower’s corporate,
partnership or other structure unless Borrower shall have first notified Lender in writing of such change at least thirty (30) days prior to the effective date of such change, and shall have first taken all action reasonably required by Lender for
the purpose of perfecting or protecting the lien and security interests of Lender pursuant to this Agreement, the Cash Management Agreement and the other Loan Documents and, in the case of a change in Borrower’s structure, without first
obtaining the prior consent of Lender, such consent not to be unreasonably withheld. Upon Lender’s request, Borrower shall execute and deliver additional financing statements, security agreements and other instruments which may be necessary to
effectively evidence or perfect Lender’s security interest in the Properties and the Collateral as a result of such change of principal place of business or place of organization. Borrower’s principal place of business and chief executive
office, and the place where Borrower keeps its books and records, including recorded data of any kind or nature, regardless of the medium or recording, including software, writings, plans, specifications and schematics, has been for the preceding
four months (or, if less, the entire period of the existence of Borrower) and will 

  

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continue to be the address of Borrower set forth at the introductory paragraph of this Agreement (unless Borrower notifies Lender in writing at least thirty
(30) days prior to the date of such change). Borrower’s organizational identification number, if any, assigned by the state of incorporation or organization is correctly set forth in the introductory paragraph of this Agreement. Borrower shall
promptly notify Lender of any change in its organizational identification number. If Borrower does not now have an organizational identification number and later obtains one, Borrower promptly shall notify Lender of such organizational
identification number. At the request of Lender, Borrower shall execute a certificate in form satisfactory to Lender listing the trade names under which Borrower intends to operate each Individual Property, and representing and warranting that
Borrower does business under no other trade name with respect to each such Individual Property. 
  
 5.1.11 Financial Reporting. (a) Borrower will keep and maintain or will cause to be kept and maintained on a Fiscal Year basis, in
accordance with the Uniform System of Accounts and reconciled in accordance with GAAP (or such other accounting basis acceptable to Lender), proper and accurate books, records and accounts reflecting all of the financial affairs of Borrower and all
items of income and expense in connection with the Collateral and the operation on an individual basis of the Properties. Lender shall have the right from time to time at all times during normal business hours upon reasonable notice to examine such
books, records and accounts at the office of Borrower or any other Person maintaining such books, records and accounts and to make such copies or extracts thereof as Lender shall desire. After the occurrence of an Event of Default, Borrower shall
pay any costs and expenses incurred by Lender to examine Borrower’s accounting records with respect to the Collateral and the Properties, as Lender shall determine to be necessary or appropriate in the protection of Lender’s interest. Upon
Lender’s reasonable request, such other information necessary and sufficient to fairly represent the financial condition of Borrower and the Properties. 
  
 (b) Borrower will furnish, or cause to the furnished, to Lender annually, within one hundred twenty (120) days following the end of each Fiscal Year of
Borrower, a complete copy of Borrower’s, Operating Lessee’s and Guarantor’s and, if requested in writing by Lender, Limited Guarantor’s annual financial statements (provided that delivery of Limited Guarantor’s annual
financial statements in accordance herewith shall be subject to a confidentiality agreement executed by Lender and reasonably acceptable to Limited Guarantor) audited by a “Big Four” accounting firm or other independent certified public
accountant acceptable to Lender in accordance with the Uniform System of Accounts and reconciled in accordance with GAAP (or such other accounting basis acceptable to Lender) covering the Properties on a combined basis as well as each Individual
Property for such Fiscal Year and containing statements of profit and loss for Borrower, Guarantor, the Collateral and the Properties and a balance sheet for Borrower, Operating Lessee and Limited Guarantor. Such statements shall set forth the
financial condition and the results of operations for the Properties for such Fiscal Year, and shall include, but not be limited to, amounts representing annual Net Cash Flow, Net Operating Income, Gross Income from Operations and Operating
Expenses. Borrower’s and/or Operating Lessee’s annual financial statements shall be accompanied by (i) a comparison of the budgeted income and expenses and the actual income and expenses for the prior Fiscal Year, (ii) an Officer’s
Certificate stating that, to such officer’s knowledge after diligent inquiry, each such annual financial statement presents fairly the financial condition and the results of operations of Borrower, Operating Lessee, the Collateral and the
Properties being 

  

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reported upon and has been prepared in accordance with the Uniform System of Accounts and reconciled in accordance with GAAP, (iii) an unqualified opinion of
a “Big Four” accounting firm or other independent certified public accountant reasonably acceptable to Lender, (iv) a schedule audited by such independent certified public accountant reconciling Net Operating Income to Net Cash Flow (the
“Net Cash Flow Schedule”), which shall itemize all adjustments made to Net Operating Income to arrive at Net Cash Flow deemed material by such independent certified public accountant, and (v) occupancy statistics for the Properties
on a combined basis as well as for each Individual Property. Together with Borrower’s annual financial statements, Borrower shall furnish to Lender an Officer’s Certificate certifying as of the date thereof whether, to such officer’s
knowledge after diligent inquiry, there exists an event or circumstance which constitutes a Default or Event of Default under the Loan Documents executed and delivered by, or applicable to, Borrower and Operating Lessee, and if such Default or Event
of Default exists, the nature thereof, the period of time it has existed and the action then being taken to remedy the same. 
  
 (c) Borrower will furnish, or cause to be furnished, to Lender on or before thirty (30) days after the end of each calendar month the following items,
accompanied by an Officer’s Certificate stating that, to such officer’s knowledge after diligent inquiry, such items are true, correct, accurate, and complete and fairly present the financial condition and results of the operations of
Borrower, Operating Lessee, the Collateral and the Properties on a combined basis as well as each Individual Property (subject to normal year-end adjustments) as applicable: (i) an occupancy report for the subject month, including an average daily
rate; (ii) monthly and year-to-date operating statements (including Capital Expenditures) prepared for each calendar month, noting Net Operating Income, Gross Income from Operations, and Operating Expenses (not including any contributions to the
Replacement Reserve Fund and the Required Repair Fund), and other information necessary and sufficient to fairly represent the financial position and results of operation of the Properties during such calendar month, and containing a comparison of
budgeted income and expenses and the actual income and expenses together with a detailed explanation of any variances of five percent (5%) or more between budgeted and actual amounts for such periods, all in form satisfactory to Lender; (iii) a
calculation reflecting the annual Debt Service Coverage Ratio for the immediately preceding twelve (12) month period as of the last day of such month; (iv) a Net Cash Flow Schedule; and (v) the amount of all operating rent due pursuant to each
Operating Lease for the subject month. In addition, such Officer’s Certificate shall also state the representations and warranties of Borrower set forth in Section 4.1.30 hereof are true and correct as of the date of such certificate and
that there are no trade payables outstanding for more than sixty (60) days. All calculations of the operating rent due under each Operating Lease shall be subject to verification by Lender. On or before forty-five (45) days after the end of each
calendar month, Borrower also will furnish, or cause to be furnished, to Lender the most current Smith Travel Research Reports in the form of Schedule X hereto then available to Borrower reflecting market penetration and relevant hotel
properties competing with each Individual Property. 
  
 (d) For
the partial year period commencing on the Closing Date, and for each Fiscal Year thereafter, Borrower shall submit to Lender an Annual Budget not later than thirty (30) days prior to the commencement of such period or Fiscal Year in form reasonably
satisfactory to Lender. The Annual Budget shall be subject to Lender’s reasonable written approval (each such Annual Budget, an “Approved Annual Budget”). In the event that Lender 

  

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objects to a proposed Annual Budget submitted by Borrower, Lender shall advise Borrower of such objections within fifteen (15) days after receipt thereof
(and deliver to Borrower a reasonably detailed description of such objections) and Borrower shall promptly revise, or cause to be revised, such Annual Budget and resubmit the same to Lender. Lender shall advise Borrower of any objections to such
revised Annual Budget within ten (10) days after receipt thereof (and deliver to Borrower a reasonably detailed description of such objections) and Borrower shall promptly revise, or cause to be revised, the same in accordance with the process
described in this subsection until Lender approves the Annual Budget. Until such time that Lender approves a proposed Annual Budget, the most recently Approved Annual Budget shall apply; provided that, such Approved Annual Budget shall be
adjusted to reflect actual increases in Taxes, Insurance Premiums and Other Charges. 
  
 (e) In the event that Borrower must incur an extraordinary material operating expense or material capital expense not set forth in the Approved Annual Budget (each, an “Extraordinary Expense”), then
Borrower shall promptly deliver to Lender a reasonably detailed explanation of such proposed Extraordinary Expense for Lender’s reasonable approval. 
  
 (f) Any reports, statements or other information required to be delivered under this Agreement shall be delivered (i) in paper form, (ii) on a diskette,
and (iii) if requested by Lender and within the capabilities of Borrower’s data systems without change or modification thereto, in electronic form and prepared using a Microsoft Word for Windows or WordPerfect for Windows files (which files may
be prepared using a spreadsheet program and saved as word processing files). Borrower agrees that Lender may disclose information regarding the Properties and Borrower that is provided to Lender pursuant to this Section 5.1.11(f) in
connection with the Securitization to such parties requesting such information in connection with such Securitization. 
  
 5.1.12 Business and Operations. Borrower shall, and shall cause Operating Lessee to, continue to engage in the businesses presently
conducted by Borrower and Operating Lessee as and to the extent the same are necessary for the ownership, maintenance, management and operation of the Collateral and the Properties. Borrower shall, and shall cause Operating Lessee to, qualify to do
business and will remain in good standing under the laws of each jurisdiction as and to the extent the same are required for the ownership, maintenance, management and operation of the Collateral and the Properties. Borrower and Operating Lessee
shall at all times during the term of the Loan, continue to own all of Equipment, Fixtures and Personal Property which are necessary to operate the Properties in the manner required hereunder and in the manner in which it is currently operated.

  
 5.1.13 Title to the Properties. Borrower
will warrant and defend (a) the title to each Individual Property and every part thereof, subject only to Liens permitted hereunder (including Permitted Encumbrances) and (b) the validity and priority of the Liens of the Mortgages and the
Assignments of Leases on the Properties, subject only to Liens permitted hereunder (including Permitted Encumbrances), in each case against the claims of all Persons whomsoever. Borrower shall reimburse Lender for any losses, costs, damages or
expenses (including reasonable attorneys’ fees and court costs) incurred by Lender if an interest in the Collateral or any Individual Property, other than as permitted hereunder, is claimed by another Person. 
  

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 5.1.14 Costs of Enforcement. In the event (a) that any Mortgage encumbering any
Individual Property is foreclosed in whole or in part or that any such Mortgage is put into the hands of an attorney for collection, suit, action or foreclosure, (b) of the foreclosure of any mortgage prior to or subsequent to any Mortgage
encumbering any Individual Property in which proceeding Lender is made a party, or (c) of the bankruptcy, insolvency, rehabilitation or other similar proceeding in respect of Borrower, Operating Lessee or any of its constituent Persons or an
assignment by Borrower or any of its constituent Persons for the benefit of its creditors, Borrower, its successors or assigns, shall be chargeable with and agrees to pay all costs of collection and defense, including attorneys’ fees and costs,
incurred by Lender or Borrower in connection therewith and in connection with any appellate proceeding or post-judgment action involved therein, together with all required service or use taxes. 
  
 5.1.15 Estoppel Statement. After request by Lender,
Borrower shall within ten (10) days furnish Lender with a statement, duly acknowledged and certified, setting forth (a) the original principal amount of each of the Components comprising the Note, (b) the unpaid principal amount of each of the
Components comprising the Note, (c) the Interest Rate of each of the Components comprising the Note, (d) the date installments of interest and/or principal were last paid, (e) any offsets or defenses to the payment of the Debt, if any, and (f) that
the Note, this Agreement, the Mortgages and the other Loan Documents are valid, legal and binding obligations and have not been modified or if modified, giving particulars of such modification. 
  
 5.1.16 Loan Proceeds. Borrower shall use the proceeds of
the Loan received by it on the Closing Date only for the purposes set forth in Section 2.1.4 hereof. 
  
 5.1.17 Performance by Borrower. Borrower shall in a timely manner observe, perform and fulfill each and every covenant, term and
provision of each Loan Document executed and delivered by, or applicable to, Borrower, and shall not enter into or otherwise suffer or permit any amendment, waiver, supplement, termination or other modification of any Loan Document executed and
delivered by, or applicable to, Borrower without the prior written consent of Lender. 
  
 5.1.18 Confirmation of Representations. Borrower shall deliver, in connection with any Securitization, (a) one (1) or more Officer’s Certificates certifying as to the accuracy of all
representations made by Borrower in the Loan Documents as of the date of the closing of such Securitization in all relevant jurisdictions, and (b) certificates of the relevant Governmental Authorities in all relevant jurisdictions indicating the
good standing and qualification of Borrower, Principal, Operating Lessee, Limited Guarantor and Guarantor as of the date of the Securitization. 
  
 5.1.19 No Joint Assessment. Borrower shall not suffer, permit or initiate the joint assessment of any Individual Property (a) with
any other real property constituting a tax lot separate from such Individual Property, and (b) which constitutes real property with any portion of such Individual Property which may be deemed to constitute personal property, or any other procedure
whereby the lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to such real property portion of the Individual Property. 
  

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 5.1.20 Leasing Matters. Any Major Leases with respect to an Individual Property
written after the Closing Date shall be approved by Lender, which approval shall not be unreasonably withheld, conditioned or delayed. Upon request, Borrower shall furnish Lender with executed copies of all Leases. All renewals of Leases and all
proposed Leases shall provide for rental rates comparable to existing local market rates. All proposed Leases shall be on commercially reasonable terms and shall not contain any terms which would materially affect Lender’s rights under the Loan
Documents. All Leases executed after the Closing Date shall provide that they are subordinate to the Mortgage encumbering the applicable Individual Property and that the lessee agrees to attorn to Lender or any purchaser at a sale by foreclosure or
power of sale. Borrower shall and shall cause Operating Lessee to (i) observe and perform the obligations imposed upon the lessor under the Leases in a commercially reasonable manner; (ii) enforce and may amend or terminate the terms, covenants and
conditions contained in the Leases upon the part of the lessee thereunder to be observed or performed in a commercially reasonable manner and in a manner not to impair the value of the Individual Property involved except that no termination by
Borrower or acceptance of surrender by a tenant of any Leases shall be permitted unless by reason of a tenant default and then only in a commercially reasonable manner to preserve and protect the Individual Property; (iii) not collect any of the
rents more than one (1) month in advance (other than security deposits); (iv) not execute any other assignment of lessor’s interest in the Leases or the Rents (except as contemplated by the Loan Documents); (v) not alter, modify or change the
terms of the Leases in a manner inconsistent with the provisions of the Loan Documents; and (vi) execute and deliver at the request of Lender all such further assurances, confirmations and assignments in connection with the Leases as Lender shall
from time to time reasonably require. Notwithstanding anything to the contrary contained herein, neither Borrower nor Operating Lessee shall enter into a lease of all or substantially all of any Individual Property without Lender’s prior
written consent. 
  
 5.1.21 Alterations.
Borrower shall obtain Lender’s prior written consent to any alterations to any Improvements, which consent shall not be unreasonably withheld or delayed except with respect to alterations that may have a material adverse effect on
Borrower’s financial condition, the value of the applicable Individual Property or the Net Operating Income. Notwithstanding the foregoing and provided that no Event of Default has occurred and is continuing, Lender’s consent shall not be
required in connection with any alterations (a) that are Replacements, Required Repairs or PIP Requirements, or (b) that (together with the related cost of such alterations) have been provided for in the Approved Annual Budget or (c) that will not
have a Material Adverse Effect on Borrower’s financial condition, the value of the applicable Individual Property or the Net Operating Income, provided that (i) the cost of such alterations in the aggregate for all Individual Properties
at one time shall not exceed Ten Million Dollars ($10,000,000), and (ii) such alterations (A) do not adversely affect any structural component of any Improvements, any utility or HVAC system contained in any Improvements or the exterior of any
building constituting a part of any Improvements and the aggregate cost thereof does not exceed the lesser of (x) One Million Dollars ($1,000,000) and (y) an amount equal to three percent (3%) of the Release Amount of the applicable Individual
Property, or (B) are alterations performed in connection with the Restoration of an Individual Property after the occurrence of a Casualty or Condemnation in accordance with the terms and provisions of this Agreement. If the total unpaid amounts due
and payable with respect to alterations to the Improvements at any Individual Property (other than such amounts to be paid or reimbursed by tenants under the Leases or amounts to be paid from any Reserve Fund) shall at any time exceed an amount
equal 

  

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to the lesser of (1) five percent (5%) of the Release Amount of the applicable Individual Property and (2) Fifteen Million Dollars ($15,000,000) (the
“Threshold Amount”), Borrower shall promptly deliver to Lender as security for the payment of such amounts and as additional security for Borrower’s obligations under the Loan Documents any of the following: (A) cash, (B) U.S.
Obligations, (C) other securities having a rating acceptable to Lender and that the applicable Rating Agencies have confirmed in writing will not, in and of itself, result in a downgrade, withdrawal or qualification of the initial, or, if higher,
then current ratings assigned to any Securities or any class thereof in connection with any Securitization or (D) a completion and performance bond or an irrevocable letter of credit (payable on sight draft only) issued by a financial institution
having a rating by S&P of not less than “A-1+” and by Moody’s of not less than “P-1” if the term of such bond or letter of credit is no longer than three (3) months or, if such term is in excess of three (3) months,
issued by a financial institution having a rating that is acceptable to Lender and that the applicable Rating Agencies have confirmed in writing will not, in and of itself, result in a downgrade, withdrawal or qualification of the initial, or, if
higher, then current ratings assigned to any Securities or class thereof in connection with any Securitization. Such security shall be in an amount equal to the excess of the total unpaid amounts with respect to alterations to the Improvements on
the applicable Individual Property (other than such amounts to be paid or reimbursed by tenants under the Leases) over the Threshold Amount and Lender may apply such security from time to time at the option of Lender to pay for such alterations.

  
 5.1.22 Operation of Property. (a)
Borrower shall cause the Properties to be operated, in all material respects, in accordance with each Management Agreement and each Franchise Agreement. In the event that any Management Agreement expires or is terminated (without limiting any
obligation of Borrower to obtain Lender’s consent to any termination or modification of each Management Agreement in accordance with the terms and provisions of this Agreement), Borrower shall promptly enter into a Replacement Management
Agreement with Manager or another Qualified Manager, as applicable. In the event that any Franchise Agreement expires or is terminated (without limiting any obligation of Borrower to obtain Lender’s consent to any termination or modification of
each Franchise Agreement in accordance with the terms and provisions of this Agreement), Borrower shall promptly enter into a Replacement Franchise Agreement with Franchisor or another Qualified Franchisor, as applicable. 
  
 (b) Borrower shall and shall cause Operating Lessee to: (i) promptly perform
and/or observe, in all material respects, all of the covenants and agreements, including, without limitation, any PIP Requirements, required to be performed and observed under each Management Agreement and each Franchise Agreement and do all things
necessary to preserve and to keep unimpaired its material rights thereunder; (ii) promptly notify Lender of any material default under any Management Agreement and any Franchise Agreement of which it is aware; (iii) promptly deliver to Lender a copy
of each financial statement, business plan, capital expenditures plan, notice, report and estimate received by it under each Management Agreement; and (iv) enforce the performance and observance of all of the covenants and agreements required to be
performed and/or observed by Manager under each Management Agreement, in a commercially reasonable manner. 
  

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 5.1.23 Supplemental Mortgage Affidavits. As of the Closing Date, Borrower represents
that it has paid all state, county and municipal recording and all other taxes imposed upon the execution and recordation of the Mortgages. If at any time Lender determines, based on applicable law, that Lender is not being afforded the maximum
amount of security available from any one or more of the Properties as a direct or indirect result of applicable taxes not having been paid with respect to any Individual Property, Borrower agrees that Borrower will execute, acknowledge and deliver
to Lender, immediately upon Lender’s request, supplemental affidavits increasing the amount of the Debt attributable to any such Individual Property (as set forth as the Release Amount on Schedule I annexed hereto) for which all
applicable taxes have been paid to an amount determined by Lender to be equal to the lesser of (a) the greater of the fair market value of the applicable Individual Property (i) as of the Closing Date and (ii) as of the date such supplemental
affidavits are to be delivered to Lender, and (b) the amount of the Debt attributable to any such Individual Property (as set forth as the Release Amount on Schedule I annexed hereto), and Borrower shall, on demand, pay any additional taxes;
provided that upon payment of the applicable taxes by Borrower, Lender agrees to readjust the Debt attributable to such Individual Property back to the levels in effect immediately prior to the execution of the supplemental affidavits above.

  
 5.1.24 Ground Leases. (a) Borrower shall,
at its sole cost and expense, promptly and timely perform and observe all the material terms, covenants and conditions required to be performed and observed by Borrower as lessee under the Ground Lease (including, but not limited to, the payment of
all rent, additional rent, percentage rent and other charges required to be paid under the Ground Lease). 
  
 (b) If Borrower shall be in default under the Ground Lease, then, subject to the terms of the Ground Lease, Borrower shall grant Lender the right (but not
the obligation), upon fifteen (15) days prior written notice to Borrower, to cause the default or defaults under the Ground Lease to be remedied and otherwise exercise any and all rights of Borrower under the Ground Lease, as may be necessary to
prevent or cure any default, provided such actions are necessary to protect Lender’s interest under the Loan Documents, and Lender shall have the right to enter all or any portion of the Ground Lease Property at such times and in such
manner as Lender deems necessary, to prevent or to cure any such default; provided, however, Lender shall not be required to provide such fifteen (15) days notice if Lender reasonably determines that the Ground Lease could reasonably
be terminated during such fifteen (15) day period. 
  
 (c) The
actions or payments of Lender to cure any default by Borrower under the Ground Lease shall not remove or waive, as between Borrower and Lender, the default that occurred under this Agreement by virtue of the default by Borrower under the Ground
Lease. All sums expended by Lender to cure any such default shall be paid by Borrower to Lender, upon demand, with interest on such sum at the rate set forth in this Agreement from the date such sum is expended to and including the date the
reimbursement payment is made to Lender. All such indebtedness shall be deemed to be secured by the Mortgage. 
  
 (d) Borrower shall notify Lender promptly in writing of the occurrence of any material default by the lessor under the Ground Lease or the occurrence of
any event that, with the passage of time or service of notice, or both, would constitute a material default by the lessor under the Ground Lease, and the receipt by Borrower of any notice (written or otherwise) from 

  

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the lessor under the Ground Lease noting or claiming the occurrence of any default by Borrower under the Ground Lease or the occurrence of any event that,
with the passage of time or service of notice, or both, would constitute a default by Borrower under the Ground Lease. Borrower shall promptly deliver to Lender a copy of any such written notice of default. 
  
 (e) Within twenty (20) days after receipt of written demand by Lender,
Borrower shall use reasonable efforts to obtain from the lessor under the Ground Lease and furnish to Lender the estoppel certificate of such lessor stating the date through which rent has been paid and whether or not there are any defaults
thereunder and specifying the nature of such claimed defaults, if any. 
  
 (f) Borrower shall promptly execute, acknowledge and deliver to Lender such instruments as may reasonably be required to permit Lender to cure any default under the Ground Lease or permit Lender to take such other action required to enable
Lender to cure or remedy the matter in default and preserve the security interest of Lender under the Loan Documents with respect to the Ground Lease Property. Borrower irrevocably appoints Lender as its true and lawful attorney-in-fact to do, in
its name or otherwise, any and all acts and to execute any and all documents that are necessary to preserve any rights of Borrower under or with respect to the Ground Lease, including, without limitation, the right to effectuate any extension or
renewal of the Ground Lease, or to preserve any rights of Borrower whatsoever in respect of any part of the Ground Lease (and the above powers granted to Lender are coupled with an interest and shall be irrevocable). 
  
 (g) Notwithstanding anything to the contrary contained in this Agreement with
respect to the Ground Lease: 
  
 (i) The lien of
the Mortgage attaches to all of Borrower’s rights and remedies at any time arising under or pursuant to Subsection 365(h) of the Bankruptcy Code, including, without limitation, all of Borrower’s rights, as debtor, to remain in possession
of the related Ground Lease Property; 
  
 (ii)
Borrower shall not, without Lender’s written consent, elect to treat the Ground Lease as terminated under subsection 365(h)(l) of the Bankruptcy Code. Any such election made without Lender’s prior written consent shall be void; 

 
 (iii) As security for the Debt, Borrower unconditionally
assigns, transfers and sets over to Lender all of Borrower’s claims and rights to the payment of damages arising from any rejection by the lessor under the Ground Lease under the Bankruptcy Code. Lender and Borrower shall proceed jointly or in
the name of Borrower in respect of any claim, suit, action or proceeding relating to the rejection of the Ground Lease, including, without limitation, the right to file and prosecute any proofs of claim, complaints, motions, applications, notices
and other documents in any case in respect of lessor under the Bankruptcy Code. This assignment constitutes a present, irrevocable and unconditional assignment of the foregoing claims, rights and remedies, and shall continue in effect until all of
the Debt shall have been satisfied and discharged in full. Any 

  

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amounts received by Lender or Borrower as damages arising out of the rejection of the Ground Lease as aforesaid shall be applied to all costs and expenses of
Lender (including, without limitation, attorney’s fees and costs) incurred in connection with the exercise of any of its rights or remedies in accordance with the applicable provisions of this Agreement; 
  
 (iv) If, pursuant to subsection 365(h) of the Bankruptcy
Code, Borrower seeks to offset, against the rent reserved in the Ground Lease, the amount of any damages caused by the nonperformance by the lessor of any of its obligations thereunder after the rejection by lessor of the Ground Lease under the
Bankruptcy Code, then Borrower shall not effect any offset of the amounts so objected to by Lender. If Lender has failed to object as aforesaid within ten (10) days after notice from Borrower in accordance with the first sentence of this subsection,
Borrower may proceed to offset the amounts set forth in Borrower’s notice; 
  
 (v) If any action, proceeding, motion or notice shall be commenced or filed in respect of any lessor of all or any part of the Ground
Lease Property in connection with any case under the Bankruptcy Code, Lender and Borrower shall cooperatively conduct and control any such litigation with counsel agreed upon between Borrower and Lender in connection with such litigation. Borrower
shall, upon demand, pay to Lender all costs and expenses (including reasonable attorneys’ fees and costs) actually paid or actually incurred by Lender in connection with the cooperative prosecution or conduct of any such proceedings. All such
costs and expenses shall be secured by the lien of the related Mortgage; and 
  
 (vi) Borrower shall promptly, after obtaining knowledge of such filing, notify Lender orally of any filing by or against the lessor under the Ground Lease of a petition under the Bankruptcy Code. Borrower shall
thereafter promptly give written notice of such filing to Lender, setting forth any information available to Borrower as to the date of such filing, the court in which such petition was filed, and the relief sought in such filing. Borrower shall
promptly deliver to Lender any and all notices, summonses, pleadings, applications and other documents received by Borrower in connection with any such petition and any proceedings relating to such petition. 
  
 5.1.25 Liquor/Hospitality Licenses. Borrower, at its
sole cost and expense shall obtain new liquor licenses or transfer, or cause to be transferred, in accordance with all applicable law, the liquor licenses and the hospitality licenses more particularly described on Schedule VIII hereto into
the name of Borrower or the applicable Manager or Operating Lessee or any other Person pursuant to an arrangement with such other Person that will provide Borrower or the applicable Individual Property with the entire economic benefit of such
license on or prior to the date described on Schedule VIII hereto. Borrower shall (a) cause each hotel located on an Individual Property subject to a Liquor License Agreement to be operated pursuant to such Liquor License Agreement; (b)
promptly perform and/or observe all of the material covenants, agreements and obligations required to be performed and observed by Borrower under each Liquor License Agreement and do all things necessary to preserve and to keep 

  

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unimpaired its material rights thereunder; (c) promptly notify Lender of any default under any Liquor License Agreement; (d) promptly enforce the performance
and observance of all of the material covenants and agreements required to be performed and/or observed under any Liquor License Agreement by the parties thereto; and (e) deposit all amounts received under each Liquor License Agreement from the
Lockbox Properties into the related Lockbox Account. 
  
 5.1.26
Operating Leases. Borrower shall (a) cause the hotel located on each Individual Property to be operated pursuant to the related Operating Lease; (b) promptly perform and/or observe all of the covenants, agreements and obligations
required to be performed and observed by Borrower under the Operating Leases and do all things necessary to preserve and to keep unimpaired its material rights thereunder; (c) promptly notify Lender of any default under any Operating Lease; (d)
promptly deliver to Lender a copy of each financial statement, business plan, capital expenditures plan, notice, report and estimate received by Borrower under any Operating Lease; (e) promptly enforce the performance and observance of all of the
covenants and agreements required to be performed and/or observed by the Operating Lessee under any Operating Lease; (f) cause Operating Lessee to deposit all Rents from the Lockbox Properties into the related Lockbox Account; and (g) cause any
outstanding Operating Rent Credits in excess of $1,000,000 in the aggregate with respect to all Operating Leases to be promptly paid, discharged or otherwise satisfied in full. 
  
 Section 5.2 Negative Covenants. From the Closing Date until payment and performance in full of all
obligations of Borrower under the Loan Documents or the earlier release of the Liens of all Mortgages encumbering the Properties and any other collateral in accordance with the terms of this Agreement and the other Loan Documents, Borrower covenants
and agrees with Lender that it will not do, directly or indirectly, any of the following: 
  
 5.2.1 Operation of Property. (a) Borrower shall not, and shall not permit or allow Operating Lessee to, without Lender’s prior written consent (which consent shall not be unreasonably
withheld, conditioned or delayed): (i) surrender, terminate or cancel any Management Agreement; provided, that Borrower may or may allow Operating Lessee to, without Lender’s consent, replace any Manager so long as the replacement
manager is a Qualified Manager pursuant to a Replacement Management Agreement; (ii) surrender, terminate or cancel any Franchise Agreement; provided, that Borrower may, or may allow Operating Lessee to, without Lender’s consent, replace
any Franchisor so long as the replacement franchisor is a Qualified Franchisor pursuant to a Replacement Franchise Agreement; (iii) reduce or consent to the reduction of the term of any Management Agreement or any Franchise Agreement; (iv) increase
or consent to the increase of the amount of any charges under any Management Agreement or any Franchise Agreement; or (v) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under, any Management
Agreement or any Franchise Agreement in any material respect. 
  
 (b) Following the occurrence and during the continuance of an Event of Default, Borrower shall not, and shall not permit Operating Lessee to, exercise any rights, make any decisions, grant any approvals or otherwise take any action under
any Management Agreement or any Franchise Agreement without the prior written consent of Lender, which consent may be granted, conditioned or withheld in Lender’s sole discretion. 
  

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 (c) Without Lender’s prior written consent, Borrower shall not (a) surrender, terminate or cancel
any Liquor License Agreement; (b) increase or consent to the increase of the amount paid to the licensee under any Liquor License Agreement; (c) modify, change, supplement, alter or amend any Liquor License Agreement or waive or release any of
Borrower’s rights and remedies under the Liquor License Agreements; or (d) grant its consent or approval as may be requested or required in connection with the terms and provisions of any Liquor License Agreement. 
  
 5.2.2 Liens. Borrower shall not create, incur, assume or
suffer to exist any Lien on any portion of any Individual Property or permit any such action to be taken, except: 
  
 (i) Permitted Encumbrances; 
  
 (ii) Liens created by or permitted pursuant to the Loan Documents; and 
  
 (iii) Liens for Taxes or Other Charges not yet due. 
  
 5.2.3 Dissolution. Borrower shall not (a) engage in any
dissolution, liquidation or consolidation or merger with or into any other business entity, (b) engage in any business activity not related to the ownership of the Collateral and the ownership and operation of the Properties, (c) transfer, lease or
sell, in one transaction or any combination of transactions, the assets or all or substantially all of the properties or assets of Borrower except to the extent permitted by the Loan Documents, (d) modify, amend, waive or terminate its
organizational documents or its qualification and good standing in any jurisdiction or (e) cause Principal or Operating Lessee to (i) dissolve, wind up or liquidate or take any action, or omit to take an action, as a result of which Principal or
Operating Lessee would be dissolved, wound up or liquidated in whole or in part, or (ii) amend, modify, waive or terminate the organizational documents of Principal or Operating Lessee, in each case, without obtaining the prior written consent of
Lender or Lender’s designee. 
  
 5.2.4 Change in
Business. (a) Borrower shall not enter into any line of business other than the ownership of the Collateral, the ownership of the Operating Lessees and the ownership and operation of the Properties, or make any material change in the scope
or nature of its business objectives, purposes or operations, or undertake or participate in activities other than the continuance of its present business. Nothing contained in this Section 5.2.4 is intended to expand the rights of Borrower
contained in Section 5.2.10(d) hereof. 
  
 (b) Borrower
shall not permit, allow or otherwise cause Operating Lessee to enter into any line of business other than the operation of the Properties pursuant to the Operating Leases, or make any material change in the scope or nature of its business
objectives, purposes or operations, or undertake or participate in activities other than the continuance of its present business. 
  
 5.2.5 Debt Cancellation. Borrower shall not cancel or otherwise forgive or release any claim or debt (other than termination of
Leases in accordance herewith) owed to Borrower by any Person, except for adequate consideration and in the ordinary course of Borrower’s business or if such cancellation, forgiveness or release is prudent and commercially reasonable.

  

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 5.2.6 Zoning. Borrower shall not initiate or consent to any zoning reclassification
of any portion of any Individual Property or seek any variance under any existing zoning ordinance or use or permit the use of any portion of any Individual Property in any manner that could result in such use becoming a non-conforming use under any
zoning ordinance or any other applicable land use law, rule or regulation, without the prior consent of Lender. 
  
 5.2.7 Ground Leases. (a) Borrower shall not, without Lender’s written consent, fail to exercise any option or right to renew or
extend the term of any Ground Lease in accordance with the terms of such Ground Lease, and shall give immediate written notice to Lender and shall execute, acknowledge, deliver and record any document requested by Lender to evidence the Lien of the
related Mortgage on such extended or renewed lease term; provided, however, Borrower shall not be required to exercise any particular such option or right to renew or extend to the extent Borrower shall have received the prior written
consent of Lender (which consent may be withheld by Lender in its sole and absolute discretion) allowing Borrower to forego exercising such option or right to renew or extend. If Borrower shall fail to exercise any such option or right as aforesaid,
Lender may exercise the option or right as Borrower’s agent and attorney-in-fact as provided above in Lender’s own name or in the name of and on behalf of a nominee of Lender, as Lender may determine in the exercise of its sole and
absolute discretion. 
  
 (b) Borrower shall not waive, excuse,
condone or in any way release or discharge the lessor under any Ground Lease of or from such lessor’s material obligations, covenant and/or conditions under the related Ground Lease without the prior written consent of Lender, such consent not
to be unreasonably withheld. 
  
 (c) Borrower shall not, without
Lender’s prior written consent, surrender, terminate, forfeit, or suffer or permit the surrender, termination or forfeiture of, or change, modify or amend in a material or adverse manner, any Ground Lease. Consent to one amendment, change,
agreement or modification shall not be deemed to be a waiver of the right to require consent to other, future or successive amendments, changes, agreements or modifications. Any acquisition of lessor’s interest in any Ground Lease by Borrower
or any Affiliate of Borrower shall be accomplished by Borrower in such a manner so as to avoid a merger of the interests of lessor and lessee in such Ground Lease, unless consent to such merger is granted by Lender. 
  
 5.2.8 Operating Leases. Without Lender’s prior
written consent, Borrower shall not (a) surrender, terminate or cancel any Operating Lease; (b) reduce or consent to the reduction of the term of any Operating Lease; (c) increase or consent to the increase of the amount of any charges under any
Operating Lease; (d) modify, change, supplement, alter or amend any Operating Lease or waive or release any of Borrower’s rights and remedies under the Operating Leases (but Borrower shall be permitted to waive any Accrued Rent (as defined in
the Operating Lease) in its discretion); (e) grant its consent or approval as may be requested or required in connection with the terms and provisions of any Operating Lease; or (f) permit or otherwise allow outstanding Operating Rent Credits under
all Operating Leases to exceed $1,000,000 in the aggregate at any time. 
  
 5.2.9 ERISA. (a) Neither Borrower nor Operating Lessee shall engage in any transaction which would cause any obligation, or action taken or to be taken, hereunder (or the 

  

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exercise by Lender of any of its rights under the Note, this Agreement or the other Loan Documents) to (i) be a non-exempt (under a statutory or
administrative class exemption) prohibited transaction under ERISA or (ii) violate any state statute regulating investment of, or fiduciary obligations with respect to, “governmental plans” within the meaning of Section 3(32) of ERISA.

  
 (b) Borrower further covenants and agrees to deliver to Lender
such certifications or other evidence from time to time throughout the term of the Loan, as requested by Lender in its sole discretion (but not more than once per year), that (A) neither Borrower nor Operating Lessee is an “employee benefit
plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “governmental plan” within the meaning of Section 3(32) of ERISA; (B) neither Borrower nor Operating Lessee has incurred any liabilities under any
employee benefit plan (except for contributions or benefits in the ordinary course) that could reasonably be expected to have a Material Adverse Effect; and (C) one or more of the following circumstances is true: 
  
 (i) Equity interests in Borrower are publicly offered
securities, within the meaning of 29 C.F.R. §2510.3-101(b)(2); 
  
 (ii) Less than twenty-five percent (25%) of each outstanding class of equity interests in Borrower is held by “benefit plan investors” within the meaning of 29 C.F.R. §2510.3-101(f)(2); or 

 
 (iii) Borrower qualifies as an “operating
company” or a “real estate operating company” within the meaning of 29 C.F.R. §2510.3-101(c) or (e). 
  
 5.2.10 Transfers. (a) Borrower acknowledges that Lender has examined and relied on the experience of Borrower and its stockholders,
general partners, members, principals and (if Borrower is a trust) beneficial owners in owning and operating properties such as the Properties in agreeing to make the Loan, and will continue to rely on Borrower’s ownership of the Properties and
the Collateral as a means of maintaining the value of the Properties and the Collateral as security for repayment of the Debt and the performance of the Other Obligations. Borrower acknowledges that Lender has a valid interest in maintaining the
value of the Properties and the Collateral so as to ensure that, should Borrower default in the repayment of the Debt or the performance of the Other Obligations, Lender can recover the Debt by a sale of the Properties and the Collateral.

  
 (b) Without the prior written consent of Lender, and except to
the extent otherwise set forth in this Section 5.2.10, Borrower shall not, and shall not permit any Restricted Party to do any of the following (collectively, a “Transfer”): (i) sell, convey, mortgage, grant, bargain,
encumber, pledge, assign, grant options with respect to, or otherwise transfer or dispose of (directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) the Collateral
or the Properties or any part thereof or any legal or beneficial interest therein, or (ii) permit a Sale or Pledge of an interest in any Restricted Party, other than (A) pursuant to Leases of space in the Improvements to tenants in accordance with
the provisions of Section 5.1.20, (B) Permitted Transfers pursuant to Section 5.2.10(d) below, and (c) any Transfers permitted pursuant to Section 5.2.10(d) below. 
  

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 (c) A Transfer shall include, but not be limited to: (i) an installment sales agreement wherein Borrower
agrees to sell the Collateral or the Properties or any part thereof for a price to be paid in installments; (ii) an agreement by Borrower leasing all or a substantial part of any Individual Property for other than actual occupancy by a space tenant
thereunder or a sale, assignment or other transfer of, or the grant of a security interest in, Borrower’s right, title and interest in and to any Leases or any Rents; (iii) if a Restricted Party is a corporation, any merger, consolidation or
Sale or Pledge of such corporation’s stock or the creation or issuance of new stock; (iv) if a Restricted Party is a limited or general partnership or joint venture, any merger or consolidation or the change, removal, resignation or addition of
a general partner or the Sale or Pledge of the partnership interest of any general partner or any profits or proceeds relating to such partnership interest, or the Sale or Pledge of limited partnership interests or any profits or proceeds relating
to such limited partnership interest or the creation or issuance of new limited partnership interests; (v) if a Restricted Party is a limited liability company, any merger or consolidation or the change, removal, resignation or addition of a
managing member or non-member manager (or if no managing member, any member) or the Sale or Pledge of the membership interest of a managing member (or if no managing member, any member) or any profits or proceeds relating to such membership
interest, or the Sale or Pledge of non-managing membership interests or the creation or issuance of new non-managing membership interests; (vi) if a Restricted Party is a trust or nominee trust, any merger, consolidation or the Sale or Pledge of the
legal or beneficial interest in a Restricted Party or the creation or issuance of new legal or beneficial interests; or (vii) the removal or the resignation of the managing agent (including, without limitation, an Affiliated Manager) other than in
accordance with Section 5.1.22 hereof. 
  
 (d)
Notwithstanding the provisions of this Section 5.2.10, the following transfers shall not be deemed to be a Transfer: (i) the Sale or Pledge, in one or a series of transactions, of not more than forty-nine percent (49%) of the stock in a
Restricted Party; provided, however, no such Transfers shall result in the change of voting control in the Restricted Party, and as a condition to each such Transfer, Lender shall receive not less than thirty (30) days prior written notice of such
proposed Transfer, (ii) the Sale or Pledge, in one or a series of transactions, of not more than forty-nine percent (49%) of the limited partnership interests or non-managing membership interests (as the case may be) in a Restricted Party;
provided, however, as a condition to each such Transfer, Lender shall receive not less than thirty (30) days prior written notice of such proposed Transfer and (iii) the issuance of newly created stock (and its subsequent sale or
transfer) in Hotel Partners or any entity directly or indirectly owning a beneficial interest in Hotel Partners (the “Traded Entity”), provided such stock is listed on the New York Stock Exchange or such other nationally
recognized stock exchange and, provided, further, that (A) Borrower shall pay to Lender all administrative costs, all legal fees and expenses reasonably incurred by Lender relating to the initial offering of the Traded Entity, (B) at
all times, Hotel Fund must continue to control Borrower, Operating Lessee, Mezzanine Borrower, Junior Mezzanine Borrower and Guarantor and own, directly or indirectly, at least a twenty-five percent (25%) interest in Borrower, Operating Lessee,
Mezzanine Borrower, Junior Mezzanine Borrower and Guarantor, and (C) if after giving effect to any such Transfer, more than forty-nine percent (49%) in the aggregate of direct or indirect interests in a Restricted Party are owned by any Person and
its Affiliates that owned less than forty-nine percent (49%) direct or indirect interest in such Restricted Party as of the Closing Date, Borrower shall deliver to Lender an Additional Insolvency Opinion acceptable to Lender and the 

  

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Rating Agencies. In connection with the Transfers permitted under this Section 5.2.10(d), Hotel Partners may simultaneously merge into or with (or
otherwise be combined with) the Traded Entity or liquidate so long as Borrower shall deliver to Lender an Additional Insolvency Opinion and a due authorization and enforceability opinion reflecting such Transfer substantially conforming to the
opinions delivered in connection with the funding of the Loan. 
  
 (e) No consent to any assumption of the Loan shall occur on or before the first (1st) anniversary of the
first (1st) Payment Date. Thereafter, Lender’s consent to a one (1) time sale, assignment, or other transfer of
the Properties shall not be unreasonably withheld provided that Lender receives sixty (60) days prior written notice of such Transfer hereunder and no Event of Default has occurred and is continuing, and further provided that the following
additional requirements are satisfied: 
  
 (i)
Borrower shall pay Lender a transfer fee equal to one percent (1%) of the outstanding principal balance of the Loan at the time of such transfer; 
  
 (ii) Borrower shall pay any and all reasonable out-of-pocket costs incurred in connection with such Transfer (including, without
limitation, Lender’s counsel fees and disbursements and all recording fees, title insurance premiums and mortgage and intangible taxes and the fees and expenses of the Rating Agencies pursuant to clause (x) below); 
  
 (iii) The proposed transferee (the
“Transferee”) or Transferee’s Principals must have demonstrated expertise in owning and operating properties similar in location, size, class and operation to the Properties, which expertise shall be reasonably determined by
Lender or employs a Qualified Manager in lieu of having its own direct property management experience. The term “Transferee’s Principals” shall include (A) Transferee’s managing members, general partners or principal majority
shareholders and (B) such other members, partners or shareholders which directly or indirectly own a fifty-one percent (51%) or greater economic and voting interest in Transferee; 
  
 (iv) Transferee and Transferee’s Principals shall, as of the date of such transfer, have an aggregate
net worth and liquidity and property management experience reasonably acceptable to Lender; 
  
 (v) Transferee, Transferee’s Principals and all other entities which may be owned or controlled directly or indirectly by
Transferee’s Principals (“Related Entities”) must not have been party to any bankruptcy proceedings, voluntary or involuntary, made an assignment for the benefit of creditors or taken advantage of any insolvency act, or any act
for the benefit of debtors within seven (7) years prior to the date of the proposed Transfer; 
  
 (vi) Transferee shall assume all of the obligations of Borrower under the Loan Documents in a manner satisfactory to Lender in all
respects, including, without limitation, by entering into an assumption agreement in form and substance satisfactory to Lender; 
  

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 (vii) There shall be no material litigation or regulatory action pending or threatened
against Transferee, Transferee’s Principals or Related Entities which is not reasonably acceptable to Lender; 
  
 (viii) Transferee, Transferee’s Principals and Related Entities shall not have defaulted under its or their obligations with respect
to any other Indebtedness in a manner which is not reasonably acceptable to Lender; 
  
 (ix) Transferee and Transferee’s Principals must be able to satisfy all the representations and covenants set forth in Sections
4.1.30 and 5.2.9 of this Agreement, no Default or Event of Default shall otherwise occur as a result of such Transfer, and Transferee and Transferee’s Principals shall deliver (A) all organizational documentation reasonably requested
by Lender, which shall be reasonably satisfactory to Lender, (B) all certificates, agreements and covenants reasonably required by Lender and (C) such additional information with respect to such Transferee and Transferee’s Principals as may be
reasonably requested by Lender; 
  
 (x)
Transferee and the Transfer shall be approved by the Rating Agencies selected by Lender (one (1) of which shall be S&P if they are rating the Securities and one (1) of which will be Moody’s if they are rating the Securities), which approval
shall take the form of a confirmation in writing from such Rating Agencies to the effect that such Transfer will not result in a requalification, reduction, downgrade or withdrawal of the ratings in effect immediately prior to such assumption or
transfer for the Securities or any class thereof issued in connection with a Securitization which are then outstanding; 
  
 (xi) Borrower or Transferee, at its sole cost and expense, shall deliver to Lender an Additional Insolvency Opinion reflecting such
Transfer satisfactory in form and substance to Lender; 
  
 (xii) Prior to any release of Guarantor, one (1) or more substitute guarantors reasonably acceptable to Lender shall have assumed all of the liabilities and obligations of Guarantor under the Guaranty and Environmental Indemnity executed by
Guarantor or executed a replacement guaranty and environmental indemnity reasonably satisfactory to Lender; 
  
 (xiii) Prior to any release of Limited Guarantor, one (1) or more substitute guarantors reasonably acceptable to Lender shall have assumed
all of the liabilities and obligations of Limited Guarantor under the Limited Guaranty executed by Limited Guarantor or executed a replacement guaranty reasonably satisfactory to Lender; 
  
 (xiv) Borrower shall deliver, at its sole cost and expense, an endorsement to the Title Insurance Policies,
as modified by the assumption agreement, as a valid first lien on the Properties and naming the Transferee as owner of the Properties, which endorsement shall insure that, as of the date of the recording of 

  

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the assumption agreement, the Properties shall not be subject to any additional exceptions or liens other than those contained in the relevant Title Policy
issued on the Closing Date and the Permitted Encumbrances relating thereto; and 
  
 (xv) For any Individual Property for which the Management Agreement or Franchise Agreement will be terminated as a result of such
Transfer, such Individual Property shall be managed by a Qualified Manager pursuant to a Replacement Management Agreement or operated by a Qualified Franchisor pursuant to a Replacement Franchise Agreement. 
  
 Immediately upon a Transfer to such Transferee and the satisfaction of all of the above
requirements, the named Borrower, Limited Guarantor and Guarantor herein shall be released from all liability under this Agreement, the Note, the Mortgages and the other Loan Documents accruing after such Transfer. The foregoing release shall be
effective upon the date of such Transfer, but Lender agrees to provide written evidence thereof reasonably requested by Borrower. 
  
 (f) Lender shall not be required to demonstrate any actual impairment of its security or any increased risk of default hereunder in order to declare the
Debt immediately due and payable upon Borrower’s Transfer without Lender’s consent. This provision shall apply to every Transfer regardless of whether voluntary or not, or whether or not Lender has consented to any previous Transfer.

  

	 	VI.	INSURANCE; CASUALTY; CONDEMNATION; REQUIRED REPAIRS 

  
 Section 6.1 Insurance. (a) Borrower shall obtain and maintain, or cause to be maintained, insurance for Borrower and the Properties
providing at least the following coverages: 
  
 (i) comprehensive all risk insurance (“Special Form”) including, but not limited to, loss caused by any type of windstorm or hail on the Improvements and the Personal Property: (A) in an amount equal to one hundred percent
(100%) of the “Full Replacement Cost,” which for purposes of this Agreement shall mean actual replacement value (exclusive of costs of excavations, foundations, underground utilities and footings) with a waiver of
depreciation, but the amount of such insurance shall in no event be less than the outstanding principal balances of the Loan, the Mezzanine Loan and the Junior Mezzanine Loan; (B) containing an agreed amount endorsement with respect to the
Improvements and Personal Property waiving all co-insurance provisions or to be written on a no co-insurance form; (C) providing for no deductible in excess of One Hundred Thousand Dollars ($100,000) for all such insurance coverage excluding
windstorm and earthquake; and (D) if any of the Improvements or the use of the Individual Property shall at any time constitute legal non-conforming structures or uses, coverage for loss due to operation of law in an amount equal to the Full
Replacement Cost, coverage for demolition costs and coverage for increased costs of construction. In addition, Borrower shall obtain: (x) if any 

  

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portion of the Improvements is currently or at any time in the future located in a federally designated “special flood hazard area,” flood hazard
insurance in an amount equal to the lesser of (1) the outstanding principal balances of the Loan, the Mezzanine Loan and the Junior Mezzanine Loan or (2) the maximum amount of such insurance available under the National Flood Insurance Act of 1968,
the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended or such greater amount as Lender shall require and (y) earthquake insurance in amounts and in form and substance reasonably
satisfactory to Lender in the event the Individual Property is located in an area with a high degree of seismic activity, provided, that, with respect to the Hyatt Property, the Individual Property known as the Hilton Del Mar and the Valley
River Inn Property, earthquake insurance shall be maintained throughout the term of the Loan in the amounts and in the form and substance as are maintained as of the Closing Date; 
  
 (ii) business income insurance (A) with loss payable to Lender; (B) covering all risks required to be
covered by the insurance provided for in subsection (i) above; and (C) in an amount equal to one hundred percent (100%) of the projected gross revenues from the operation of the Properties (as reduced to reflect expenses not incurred during a
period of Restoration) for a period of at least twenty four (24) months after the date of the Casualty. The amount of such business income insurance shall be determined prior to the Closing Date hereof and at least once each year thereafter
based on Borrower’s reasonable estimate of the gross revenues from each Individual Property for the succeeding twenty-four (24) month period. Notwithstanding the provisions of Section 2.6.1 hereof, all proceeds payable to Lender pursuant
to this subsection shall be held by Lender and shall be applied to (1) the obligations secured by the Loan Documents from time to time due and payable hereunder and under the Note, and (2) Operating Expenses approved by Lender in its reasonable
discretion; provided, however, that nothing herein contained shall be deemed to relieve Borrower of its obligations to pay the obligations secured by the Loan Documents on the respective dates of payment provided for in the Note and
the other Loan Documents except to the extent such amounts are actually paid out of the proceeds of such business income insurance; 
  
 (iii) at all times during which structural construction, repairs or alterations are being made with respect to the Improvements, and only
if the Individual Property coverage form does not otherwise apply, (A) owner’s contingent or protective liability insurance, otherwise known as Owner Contractor’s Protective Liability, covering claims not covered by or under the terms or
provisions of the above mentioned commercial general liability insurance policy and (B) the insurance provided for in subsection (i) above written in a so-called builder’s risk completed value form (1) on a non-reporting basis, (2)
against all risks insured against pursuant to subsection (i) above, (3) including permission to occupy the Individual Property and (4) with an agreed amount endorsement waiving co-insurance provisions; 
  

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 (iv) comprehensive boiler and machinery insurance, if steam boilers or other
pressure-fixed vessels are in operation, in amounts as shall be reasonably required by Lender on terms consistent with the commercial property insurance policy required under subsection (i) above; 
  
 (v) commercial general liability insurance against claims
for personal injury, bodily injury, death or property damage occurring upon, in or about the Individual Property, such insurance (A) to be on the so-called “occurrence” form with a combined limit of not less than Two Million Dollars
($2,000,000) in the aggregate and One Million Dollars ($1,000,000) per occurrence; (B) to continue at not less than the aforesaid limit until reasonably required to be changed by Lender in writing by reason of changed economic conditions making such
protection inadequate and (C) to cover at least the following hazards: (1) premises and operations; (2) products and completed operations on an “if any” basis; (3) independent contractors; (4) blanket contractual liability for all written
contracts and (5) contractual liability covering the indemnities contained in Article 9 of the Mortgages to the extent the same is available; 
  
 (vi) automobile liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits
per occurrence of One Million Dollars ($1,000,000); 
  
 (vii) worker’s compensation and employee’s liability subject to the worker’s compensation laws of the applicable state; 
  
 (viii) umbrella and excess liability insurance in an amount not less than Fifty Million Dollars ($50,000,000) per occurrence on terms
consistent with the commercial general liability insurance policy required under subsection (v) above, including, but not limited to, supplemental coverage for employer liability, automobile liability and garage keeper’s liability, which
umbrella liability coverage shall apply in excess of the automobile liability coverage in clause (vi) above; 
  
 (ix) the commercial property and business income insurance required under Sections 6.1(a)(i) and (ii) above shall cover
perils of terrorism and acts of terrorism and Borrower shall maintain commercial property and business income insurance for loss resulting from perils and acts of terrorism on terms consistent with those required under Sections 6.1(a)(i) and
(ii) above at all times during the term of the Loan in an amount per occurrence of not less than One Hundred Million Dollars ($100,000,000); provided, however, (a) the deductible for the terrorism coverage required under this
subsection shall not be in excess of One Million Dollars ($1,000,000), and (b) if the premium for the terrorism coverage required under this subsection exceeds One Million Dollars ($1,000,000) (the “Minimum Amount”), Borrower shall
be required to pay the Minimum Amount in all cases and such excess premiums over the Minimum Amount to the extent Lender determines that either (i) prudent owners of real estate comparable to the Properties are maintaining such coverage or (ii)
prudent institutional lenders 

  

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(including, without limitation, investment banks) to such owners are requiring that such owners maintain such coverage. Borrower shall not be required to
purchase any “terrorism” insurance coverage against acts of nuclear, biological or chemical terrorism; 
  
 (x) upon sixty (60) days written notice, such other reasonable insurance, including, but not limited to, sinkhole or land subsidence
insurance, and in such reasonable amounts as Lender from time to time may reasonably request against such other insurable hazards which at the time are commonly insured against for property similar to the Individual Property located in or around the
region in which the Individual Property is located; and 
  
 (xi) environmental insurance consistent with the terms, coverage and deductible as currently maintained by Borrower as of the Closing Date as provided by Zurich, or otherwise consistent with the requirements of this
Section 6.1, provided, however, in no event shall the coverage required pursuant to this subsection (xi) provide less than Fifty Million Dollars ($50,000,000) in the aggregate and Fifteen Million Dollars ($15,000,000) per occurrence or have a
deductible in excess of One Hundred Thousand Dollars ($100,000). 
  
 (b) All insurance provided for in Section 6.1(a) hereof, shall be obtained under valid and enforceable policies (collectively, the “Policies” or, in the singular, the “Policy”), and shall be (to the
extent not specified in Section 6.1(a) above) subject to the reasonable approval of Lender as to insurance companies, amounts, deductibles, loss payees and insureds. The Policies shall be issued by financially sound and responsible insurance
companies authorized to do business in the State and having a claims paying ability rating by at least two (2) of the Rating Agencies rating the Securities (one (1) of which shall be S&P if they are rating the Securities and one (1) of which
will be Moody’s if they are rating the Securities) of “AA” or better by S&P and Fitch and “Aa2” by Moody’s, or if only one (1) Rating Agency is rating the Securities, then only by such Rating Agency. Notwithstanding
the foregoing, the claims paying ability rating may be less than “AA” or “Aa2”, as applicable, provided that Borrower shall have obtained prior written confirmation from the applicable Rating Agencies that such lesser
claims paying ability rating for the providers of the Policies shall not cause a downgrade, withdrawal or qualification of the then current rating of the Securities or any class thereof. The Policies described in Section 6.1 hereof (other
than those strictly limited to liability protection) shall designate Lender as loss payee as its interests may appear. Not less than ten (10) days prior to the expiration dates of the Policies theretofore furnished to Lender, certificates of
insurance (or a binder issued by a broker of record) evidencing the Policies accompanied by evidence satisfactory to Lender of payment of the premiums due thereunder (the “Insurance Premiums”), shall be delivered by Borrower to
Lender and the Policies shall be delivered by Borrower to Lender within thirty (30) days after the renewal thereof. 
  
 (c) Any blanket insurance Policy shall specifically allocate to the Individual Property the amount of coverage from time to time required hereunder and
shall otherwise provide the same protection as would a separate Policy insuring only the Properties in compliance with the provisions of Section 6.1(a) hereof. 
  

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 (d) All Policies provided for or contemplated by Section 6.1(a) hereof, except for the Policy
referenced in Section 6.1(a)(vii) of this Agreement, shall name Borrower as the insured and Lender as the additional insured, as its interests may appear, and in the case of property damage, boiler and machinery, flood and earthquake
insurance, shall contain a so-called New York standard non-contributing mortgagee clause in favor of Lender providing that the loss thereunder shall be payable to Lender. 
  
 (e) All Policies shall contain clauses or endorsements to the effect that: 
  
 (i) Except as prohibited by applicable law, no act or
negligence of Borrower, or anyone acting for Borrower, or of any tenant or other occupant, or failure to comply with the provisions of any Policy, which might otherwise result in a forfeiture of the insurance or any part thereof, shall in any way
affect the validity or enforceability of the insurance insofar as Lender is concerned; 
  
 (ii) the Policy shall not be materially changed (other than to increase the coverage provided thereby) or canceled without at least thirty
(30) days written notice to Lender and any other party named therein as an additional insured; 
  
 (iii) the issuers thereof shall give written notice to Lender if the Policy has not been renewed fifteen (15) days prior to its
expiration; and 
  
 (iv) Lender shall not be
liable for any Insurance Premiums thereon or subject to any assessments thereunder. 
  
 (f) If at any time Lender is not in receipt of written evidence that all insurance required hereunder is in full force and effect, Lender shall have the right to take such action as Lender deems necessary to protect
its interest in the Properties, including, without limitation, the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate (i) after three (3) Business Days notice to Borrower if prior to the date upon which any such
coverage will lapse, or (ii) at any time Lender deems necessary (regardless of prior notice to Borrower) to avoid the lapse of any such coverage. All premiums incurred by Lender in connection with such action or in obtaining such insurance and
keeping it in effect shall be paid by Borrower to Lender upon demand and, until paid, shall be secured by the Mortgages and shall bear interest at the Default Rate. 
  
 Section 6.2 Casualty. If any Individual Property shall be damaged or destroyed, in whole or in part, by
fire or other casualty (a “Casualty”), Borrower shall give prompt notice of such damage to Lender and shall promptly commence and diligently prosecute the completion of the Restoration of the Individual Property pursuant to
Section 6.4 hereof as nearly as possible to the condition the Property was in immediately prior to such Casualty, with such alterations as may be reasonably approved by Lender and otherwise in accordance with Section 6.4 hereof.
Borrower shall pay all costs of such Restoration whether or not such costs are covered by insurance. Lender may, but shall not be obligated to make proof of loss if not made promptly by Borrower. In addition, Lender may participate in any settlement
discussions with any insurance companies (and shall approve the final settlement) with respect to any Casualty in which the Net Proceeds or the costs of completing the Restoration are equal to or 

  

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greater than the lesser of (x) One Million Five Hundred Thousand Dollars ($1,500,000) and (y) five percent (5%) of the Adjusted Release Amount of the
affected Individual Property and Borrower shall deliver to Lender all instruments required by Lender to permit such participation. 
  
 Section 6.3 Condemnation. Borrower shall promptly give Lender notice of the actual or threatened commencement of any proceeding for
the Condemnation of any Individual Property and shall deliver to Lender copies of any and all papers served in connection with such proceedings. Lender may participate in any such proceedings, and Borrower shall from time to time deliver to Lender
all instruments requested by it to permit such participation. Borrower shall, at its expense, diligently prosecute any such proceedings, and shall consult with Lender, its attorneys and experts, and cooperate with them in the carrying on or defense
of any such proceedings. Notwithstanding any taking by any public or quasi-public authority through Condemnation or otherwise (including, but not limited to, any transfer made in lieu of or in anticipation of the exercise of such taking), Borrower
shall continue to pay the Debt at the time and in the manner provided for its payment in the Note and in this Agreement and the Debt shall not be reduced until any Award shall have been actually received and applied by Lender, after the deduction of
expenses of collection, to the reduction or discharge of the Debt. Lender shall not be limited to the interest paid on the Award by the condemning authority but shall be entitled to receive out of the Award interest at the rate or rates provided
herein or in the Note. If any Individual Property or any portion thereof is taken by a condemning authority, Borrower shall promptly commence and diligently prosecute the Restoration of the applicable Individual Property or any portion thereof
pursuant to Section 6.4 hereof and otherwise comply with the provisions of Section 6.4 hereof. If any Individual Property is sold, through foreclosure or otherwise, prior to the receipt by Lender of the Award, Lender shall have the
right, whether or not a deficiency judgment on the Note shall have been sought, recovered or denied, to receive the Award, or a portion thereof sufficient to pay the Debt. 
  
 Section 6.4 Restoration. The following provisions shall apply in connection with the Restoration of any
Individual Property: 
  
 (a) If the Net Proceeds shall be less
than an amount equal to four percent (4%) of the Release Amount for the affected Individual Property and the costs of completing the Restoration shall be less than an amount equal to four percent (4%) of the Release Amount for the affected
Individual Property, and provided that the Net Proceeds and the costs of completing the Restorations for all affected Properties are less than Five Million Dollars ($5,000,000), the Net Proceeds will be disbursed by Lender to Borrower upon receipt,
provided that all of the conditions set forth in Section 6.4(b)(i) hereof are met and Borrower delivers to Lender a written undertaking to expeditiously commence and to satisfactorily complete with due diligence the Restoration in
accordance with the terms of this Agreement. 
  
 (b) If (i) the
Net Proceeds are equal to or greater than an amount equal to four percent (4%) of the Release Amount for the affected Individual Property or the costs of completing the Restoration is equal to or greater than an amount equal to four percent (4%) of
the Release Amount for the affected Individual Property or (ii) the Net Proceeds or the costs of completing the Restorations for all affected Properties are equal to or greater than Five Million Dollars ($5,000,000), Lender shall make the Net
Proceeds available for the Restoration in accordance with the provisions of this Section 6.4. The term “Net Proceeds” for purposes of 

  

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this Section 6.4 shall mean: (A) the net amount of all insurance proceeds received by Lender pursuant to Section 6.1(a)(i), (iv),
(ix) and (x) as a result of such damage or destruction, after deduction of its reasonable costs and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Insurance Proceeds”),
or (ii) the net amount of the Award, after deduction of its reasonable costs and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Condemnation Proceeds”), whichever the case may
be. 
  
 (i) The Net Proceeds shall be made
available to Borrower for Restoration, provided that each of the following conditions are met: 
  
 (A) no Event of Default shall have occurred and be continuing; 
  
 (B) (1) in the event the Net Proceeds are Insurance Proceeds, less than forty-five percent (45%) of the
total floor area of the Improvements on the Individual Property has been damaged, destroyed or rendered unusable as a result of such Casualty or (2) in the event the Net Proceeds are Condemnation Proceeds, less than fifteen percent (15%) of the land
constituting the Individual Property is taken, and such land is located along the perimeter or periphery of the Individual Property, and no portion of the Improvements or access to the Individual Property is located on such land; 
  
 (C) Borrower shall commence the Restoration as soon as
reasonably practicable (but in no event later than one hundred eighty (180) days after such Casualty or Condemnation, whichever the case may be, occurs) and shall diligently pursue the same to satisfactory completion; 
  
 (D) Lender shall be satisfied that any operating deficits,
including all scheduled payments of principal and interest under the Note, which will be incurred with respect to the Individual Property as a result of the occurrence of any such Casualty or Condemnation, whichever the case may be, will be covered
out of (1) the Net Proceeds, (2) the insurance coverage referred to in Section 6.1(a)(ii) hereof, if applicable, or (3) by other funds of Borrower; 
  
 (E) Lender shall be satisfied that the Restoration will be completed on or before the earliest to occur of (1) six (6) months prior to the
Maturity Date, (2) such time as may be required under all applicable Legal Requirements in order to repair and restore the applicable Individual Property to the condition it was in immediately prior to such Casualty or to as nearly as possible the
condition it was in immediately prior to such Condemnation, as applicable, or (3) the expiration of the insurance coverage referred to in Section 6.1(a)(ii) hereof; 
  

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 (F) the Individual Property and the use thereof after the Restoration will be in
compliance with and permitted under all applicable Legal Requirements; 
  
 (G) the Restoration shall be done and completed by Borrower in an expeditious and diligent fashion and in compliance with all applicable Legal Requirements; 
  
 (H) such Casualty or Condemnation, as applicable, does not
result in the loss of access to the Individual Property or the related Improvements; 
  
 (I) the Debt Service Coverage Ratio for the affected Individual Property, after giving effect to the Restoration, shall be equal to or
greater than 1.20 to 1.0; 
  
 (J) Borrower shall
deliver, or cause to be delivered, to Lender a signed detailed budget approved in writing by Borrower’s architect or engineer stating the entire cost of completing the Restoration, which budget shall be acceptable to Lender; and 
  
 (K) the Net Proceeds together with any cash or cash
equivalent deposited by Borrower with Lender are sufficient in Lender’s discretion to cover the cost of the Restoration. 
  
 (ii) The Net Proceeds shall be held by Lender in an interest-bearing account and, until disbursed in accordance with the provisions of
this Section 6.4(b), shall constitute additional security for the Debt and Other Obligations under the Loan Documents. The Net Proceeds shall be disbursed by Lender to, or as directed by, Borrower from time to time during the course of the
Restoration, upon receipt of evidence satisfactory to Lender that (A) all materials installed and work and labor performed (except to the extent that they are to be paid for out of the requested disbursement) in connection with the Restoration have
been paid for in full, and (B) there exist no notices of pendency, stop orders, mechanic’s or materialman’s liens or notices of intention to file same, or any other liens or encumbrances of any nature whatsoever on the Individual Property
which have not either been fully bonded to the satisfaction of Lender and discharged of record or in the alternative fully insured to the satisfaction of Lender by the title company issuing the Title Insurance Policy. 
  
 (iii) All plans and specifications required in connection
with the Restoration shall be subject to prior review and acceptance in all respects by Lender and by an independent consulting engineer selected by Lender (the “Casualty Consultant”). Lender shall have the use of the plans and
specifications and all permits, licenses and approvals required or obtained in connection with the Restoration. The identity of the contractors, subcontractors and materialmen engaged in the Restoration, as well as the contracts under which 

  

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they have been engaged, shall be subject to prior review and acceptance by Lender and the Casualty Consultant. All costs and expenses incurred by Lender in
connection with making the Net Proceeds available for the Restoration including, without limitation, reasonable counsel fees and disbursements and the Casualty Consultant’s fees, shall be paid by Borrower. 
  
 (iv) In no event shall Lender be obligated to make
disbursements of the Net Proceeds in excess of an amount equal to the costs actually incurred from time to time for work in place as part of the Restoration, as certified by the Casualty Consultant, minus the Casualty Retainage. The term
“Casualty Retainage” shall mean an amount equal to ten percent (10%) of the costs actually incurred for work in place as part of the Restoration, as certified by the Casualty Consultant, until the Restoration has been completed. The
Casualty Retainage shall in no event, and notwithstanding anything to the contrary set forth above in this Section 6.4(b), be less than the amount actually held back by Borrower from contractors, subcontractors and materialmen engaged in the
Restoration. The Casualty Retainage shall not be released until the Casualty Consultant certifies to Lender that the Restoration has been completed in accordance with the provisions of this Section 6.4(b) and that all approvals necessary for
the re-occupancy and use of the Individual Property have been obtained from all appropriate governmental and quasi-governmental authorities, and Lender receives evidence satisfactory to Lender that the costs of the Restoration have been paid in full
or will be paid in full out of the Casualty Retainage; provided, however, that Lender will release the portion of the Casualty Retainage being held with respect to any contractor, subcontractor or materialman engaged in the Restoration
as of the date upon which the Casualty Consultant certifies to Lender that the contractor, subcontractor or materialman has satisfactorily completed all work and has supplied all materials in accordance with the provisions of the contractor’s,
subcontractor’s or materialman’s contract, the contractor, subcontractor or materialman delivers the lien waivers and evidence of payment in full of all sums due to the contractor, subcontractor or materialman as may be reasonably
requested by Lender or by the title company issuing the Title Insurance Policy, and Lender receives an endorsement to the Title Insurance Policy insuring the continued priority of the lien of the related Mortgage and evidence of payment of any
premium payable for such endorsement. If required by Lender, the release of any such portion of the Casualty Retainage shall be approved by the surety company, if any, which has issued a payment or performance bond with respect to the contractor,
subcontractor or materialman. 
  
 (v) Lender
shall not be obligated to make disbursements of the Net Proceeds more frequently than once every calendar month. 
  
 (vi) If at any time the Net Proceeds or the undisbursed balance thereof shall not, in the opinion of Lender in consultation with the
Casualty Consultant, be sufficient to pay in full the balance of the costs which are estimated by the Casualty Consultant to be incurred in connection with the completion of the Restoration, Borrower shall deposit the deficiency (the “Net
Proceeds 

  

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Deficiency”) with Lender before any further disbursement of the Net Proceeds shall be made. The Net Proceeds Deficiency deposited with Lender
shall be held by Lender and shall be disbursed for costs actually incurred in connection with the Restoration on the same conditions applicable to the disbursement of the Net Proceeds, and until so disbursed pursuant to this Section 6.4(b)
shall constitute additional security for the Debt and Other Obligations under the Loan Documents. 
  
 (vii) The excess, if any, of the Net Proceeds (and the remaining balance, if any, of the Net Proceeds Deficiency deposited with Lender)
after the Casualty Consultant certifies to Lender that the Restoration has been completed in accordance with the provisions of this Section 6.4(b), and the receipt by Lender of evidence satisfactory to Lender that all costs incurred in
connection with the Restoration have been paid in full, shall be deposited in the Cash Management Account to be disbursed in accordance with the Cash Management Agreement, provided no Event of Default shall have occurred and shall be continuing
under the Note, this Agreement or any of the other Loan Documents. 
  
 (c) All Net Proceeds not required (i) to be made available for the Restoration or (ii) to be returned to Borrower as excess Net Proceeds pursuant to Section 6.4(b)(vii) hereof may be retained and applied by Lender toward the payment
of the Debt in accordance with Section 2.4.2 hereof, whether or not then due and payable in such order, priority and proportions as Lender in its sole discretion shall deem proper, or, at the discretion of Lender, the same may be paid, either
in whole or in part, to Borrower for such purposes as Lender shall approve, in its discretion. 
  
 (d) In the event of foreclosure of the Mortgage with respect to an Individual Property, or other transfer of title of an Individual Property in extinguishment in whole or in part of the Debt all right, title and
interest of Borrower in and to the Policies that are not blanket Policies then in force concerning such Individual Property and all proceeds payable thereunder shall thereupon vest in the purchaser at such foreclosure or Lender or other transferee
in the event of such other transfer of title. 
  

	 	VII.	RESERVE FUNDS 

  
 Section 7.1 Required Repairs and PIP Requirements. 
  
 7.1.1 Deposits. Borrower shall perform (a) the repairs at the Properties, as more particularly set
forth on Schedule III hereto (such repairs hereinafter referred to as “Required Repairs”) and (b) the PIP Requirements set forth on Schedule XI hereto. Borrower shall complete the Required Repairs on or before the
required deadline for each repair as set forth on Schedule III. Borrower shall complete the PIP Requirements on or before the deadline for each PIP Requirement as set forth on Schedule XI. Borrower shall complete the Required Repairs
at each Individual Property by the required deadline for each repair as set forth on Schedule III and complete the PIP Requirements at each Individual Property by the required deadline for each PIP Requirement as set forth on Schedule
XI. Upon the occurrence of such an Event of Default relating to Borrower’s failure to comply with its obligations under the preceding sentence, Lender, at its option, may withdraw all Required Repair Funds from the Required Repair 

  

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Account and Lender may apply such funds either to completion of the Required Repairs or PIP Requirements at one or more of the Properties or toward payment
of the Debt in such order, proportion and priority as Lender may determine in its sole discretion. Lender’s right to withdraw and apply Required Repair Funds shall be in addition to all other rights and remedies provided to Lender under this
Agreement and the other Loan Documents. On the Closing Date, Borrower shall deposit with Lender (i) an amount equal to one hundred twenty-five percent (125%) of the estimated amount for each Individual Property set forth on such Schedule III
hereto to perform the Required Repairs for such Individual Property and (ii) a cash escrow or a Letter of Credit in an amount equal to $25,088,200 to secure the performance and completion of the PIP Requirements for each Individual Property. Amounts
so deposited with Lender shall be held by Lender in accordance with Section 7.7 hereof. Amounts so deposited shall hereinafter be referred to as Borrower’s “Required Repair Fund” and the account in which such amounts are
held shall hereinafter be referred to as Borrower’s “Required Repair Account.” 
  
 7.1.2 Release of Required Repair Funds. Lender shall disburse to Borrower (or to Operating Lessee if so directed by Borrower) the
Required Repair Funds from the Required Repair Account from time to time upon satisfaction by Borrower of each of the following conditions: (a) Borrower shall, or shall cause Operating Lessee to, submit a written request for payment to Lender at
least fifteen (15) days prior to the date on which Borrower or Operating Lessee, as applicable, requests such payment be made and specifies the Required Repairs or PIP Requirements to be paid, (b) on the date such request is received by Lender and
on the date such payment is to be made, no Default or Event of Default shall exist and remain uncured, (c) Lender shall have received an Officers’ Certificate (i) stating that all Required Repairs or PIP Requirements, as applicable, at the
applicable Individual Property to be funded by the requested disbursement have been completed in good and workmanlike manner and, in the case of PIP Requirements, in accordance with the related property improvement program pursuant to which such PIP
Requirements are mandated, or, in the case of Required Repairs, in accordance with all applicable federal, state and local laws, rules and regulations, such certificate to be accompanied by a copy of any license, permit or other approval by any
Governmental Authority required to commence and/or complete the Required Repairs, (ii) identifying each Person that supplied materials or labor in connection with the Required Repairs or PIP Requirements, as applicable, performed at such Individual
Property to be funded by the requested disbursement, and (iii) stating that each such Person has been paid in full or will be paid in full upon such disbursement, such Officers’ Certificate to be accompanied by lien waivers or other evidence of
payment satisfactory to Lender, (d) Lender shall have received, at Lender’s option, a title search for such Individual Property indicating that such Individual Property is free from all liens, claims and other encumbrances not previously
approved by Lender, and (e) Lender shall have received such other evidence as Lender may reasonably request that the Required Repairs or PIP Requirements, as applicable, at such Individual Property to be funded by the requested disbursement have
been completed and are paid for or will be paid upon such disbursement to Borrower or Operating Lessee, as applicable. Lender shall not be required to make disbursements from the Required Repair Account with respect to any Individual Property unless
such requested disbursement is in an amount greater than Twenty-five Thousand Dollars ($25,000) (or a lesser amount if the total amount in the Required Repair Account is less than Twenty-five Thousand Dollars ($25,000), in which case only one

  

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disbursement of the amount remaining in the account shall be made) and such disbursement shall be made only upon satisfaction of each condition contained in
this Section 7.1.2. 
  
 Section 7.2 Tax and
Insurance Escrow Fund. Borrower shall pay to Lender on each Payment Date occurring during the months of May through and including October and on each Payment Date occurring during the month of December (a) one-seventh (1/7th) of the Taxes and Other Charges that Lender reasonably estimates will be payable during the next ensuing twelve (12) months
(or such other amount as shall be agreed to by Borrower and Lender) in order to accumulate with Lender sufficient funds to pay all such Taxes and Other Charges at least thirty (30) days prior to their respective due dates, and (b) one-seventh
(1/7th) of the Insurance Premiums that Lender reasonably estimates will be payable for the renewal of the coverage
afforded by the Policies upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies (said amounts in (a) and (b) above
hereinafter called the “Tax and Insurance Escrow Fund”). The Tax and Insurance Escrow Fund and the Monthly Debt Service Payment Amount, shall be added together and shall be paid as an aggregate sum by Borrower to Lender. Lender will
apply the Tax and Insurance Escrow Fund to payments of Taxes and Insurance Premiums required to be made by Borrower pursuant to Section 5.1.2 hereof and under the Mortgages. In making any payment relating to the Tax and Insurance Escrow Fund,
Lender may do so according to any bill, statement or estimate procured from the appropriate public office (with respect to Taxes) or insurer or agent (with respect to Insurance Premiums), without inquiry into the accuracy of such bill, statement or
estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof, unless Borrower is contesting the Taxes in accordance with Section 5.1.2 and Borrower has so notified Lender. If the amount of the Tax
and Insurance Escrow Fund shall exceed the amounts due for Taxes, Other Charges and Insurance Premiums pursuant to Section 5.1.2 hereof, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future
payments to be made to the Tax and Insurance Escrow Fund. Any amount remaining in the Tax and Insurance Escrow Fund after the Debt has been paid in full shall be returned to Borrower. In allocating such excess, Lender may deal with the Person shown
on the records of Lender to be the Owner of the Properties. If at any time Lender reasonably determines that the Tax and Insurance Escrow Fund is not or will not be sufficient to pay Taxes, Other Charges and Insurance Premiums by the dates set forth
in (a) and (b) above, Lender shall notify Borrower of such determination and Borrower shall increase its monthly payments to Lender by the amount that Lender estimates is sufficient to make up the deficiency at least thirty (30) days prior to the
due date of the Taxes and Other Charges and/or thirty (30) days prior to expiration of the Policies, as the case may be. In addition to the amounts required to be deposited pursuant to this Section 7.2, Borrower shall pay to Lender on each
Payment Date occurring during the months of May through and including October and on each Payment Date occurring during the month of December one-seventh (1/7th) of the aggregate annual amount reasonably estimated by Lender to be payable by the related Individual Borrower and/or Operating Lessee under the Valley River Inn Parking Easement during the next
ensuing twelve (12) months which amounts shall be deposited into the Tax and Insurance Escrow Fund in order to accumulate with Lender sufficient funds to pay all such charges prior to the date due. 
  

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 Section 7.3 Replacements and Replacement Reserve. 
  
 7.3.1 Replacement Reserve Fund. Borrower shall pay to
Lender on each Payment Date (a) an amount equal to the greater of (x) one-twelfth of Seven Million Dollars ($7,000,000) (which amount of $7,000,000 shall be reduced (1) by the amount reserved (but in no event shall such amount exceed $3,800,000) by
the related Managers of the Hyatt Property and/or Marriott Properties pursuant to the related Manager and Franchise Agreements applicable to such Properties and (2) on a pro-rata basis based on the applicable Release Amount following the release of
any Individual Property from the Lien of its related Mortgage in accordance with Section 2.5 hereof) and (y) the greater of (i) the actual percentage of Gross Income from Operations required to be expended under all Management and Franchise
Agreements (with the exception of the Marriott Properties and the Hyatt Property) and (ii) four percent (4%) of Gross Income from Operations from each Individual Property (with the exception of the Marriott Properties and the Hyatt Property) for the
calendar month occurring two (2) calendar months prior to the calendar month of the Payment Date on which such deposit is required (the “FF&E Amount”), and (b) commencing on the first anniversary of the Payment Date following
the Closing of the Loan and on each Payment Date thereafter throughout the term of the Loan, one-twelfth (1/12th) of the amount for the costs of the PIP Requirements for each Individual Property (with the exception of the Marriott Properties and the
Hyatt Property, provided that such amounts are required under the related Management and Franchise Agreements applicable to such Properties) for the immediately succeeding twelve (12) month period as set forth on Schedule XI attached
hereto (such annual costs of PIP Requirements, the “Required PIP Amount”), provided that the Required PIP Amount may be reduced by an amount equal to up to seventy-five percent (75%) of the FF&E Amount (the FF&E Amount and
the Required PIP Amount, collectively, the “Replacement Reserve Monthly Deposit”) to fund the costs of the replacements and repairs and PIP Requirements required to be made to the Properties during the calendar year
(collectively, the “Replacements”). Amounts so deposited shall hereinafter be referred to as Borrower’s “Replacement Reserve Fund” and the account in which such amounts are held shall hereinafter be referred to
as Borrower’s “Replacement Reserve Account”. Based on the terms and provisions of the Management Agreements and the Franchise Agreements, Lender may reassess its estimate of the amount necessary for the Replacement Reserve Fund
from time to time, and may increase the monthly amounts required to be deposited into the Replacement Reserve Fund upon thirty (30) days notice to Borrower. In the event any Individual Property is released from the Lien of its related Mortgage in
accordance with Section 2.5 hereof, any Required PIP Amount held in the Replacement Reserve Account and allocated for such Individual Property shall be released to Borrower, provided, that any such Required PIP Amounts shall no longer be
released to Borrower once the aggregate Adjusted Release Amounts under the Loan, the Mezzanine Loan and the Junior Mezzanine Loan for each Individual Property released in accordance with Section 2.5 hereof equals Seventy-Five Million Dollars
($75,000,000) and any such Required PIP Amounts shall instead be retained by Lender and credited toward the future Required PIP Amounts required pursuant to this Section 7.3. If, for any reason, the Manager of any of the Marriott Properties
or the Manager of the Hyatt Property shall discontinue reserving for Replacements for the applicable Individual Property, Borrower shall commence making deposits to the Replacement Reserve Fund with respect to such Individual Property in accordance
with this Section 7.3.1 and such Individual Property shall remain subject to this Section 7.3 until the related Manager resumes reserving for Replacements for such Individual Property. 
  

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 7.3.2 Disbursements from Replacement Reserve Account. (a) Lender shall make
disbursements from the Replacement Reserve Account to pay Borrower (or Operating Lessee, if so directed by Borrower) only for the costs of the Replacements. Lender shall not be obligated to make disbursements from the Replacement Reserve Account to
reimburse Borrower for the costs of routine maintenance to an Individual Property, replacements of inventory or for costs which are to be reimbursed from the Required Repair Fund. 
  
 (b) Lender shall, upon written request from Borrower and satisfaction of the requirements set forth in this Section
7.3.2, disburse to Borrower (or Operating Lessee, if so directed by Borrower) amounts from the Replacement Reserve Account necessary to pay for the actual costs of Replacements or to reimburse Borrower (or Operating Lessee, if so directed by
Borrower) therefor, upon completion of such Replacements (or, upon partial completion in the case of Replacements made pursuant to Section 7.3.2(e) hereof) as determined by Lender. In no event shall Lender be obligated to disburse funds from
the Replacement Reserve Account if a Default or an Event of Default exists. 
  
 (c) Each request for disbursement from the Replacement Reserve Account shall be in a form specified or approved by Lender and shall specify (i) the specific Replacements for which the disbursement is requested, (ii)
the quantity and price of each item purchased, if the Replacement includes the purchase or replacement of specific items, (iii) the price of all materials (grouped by type or category) used in any Replacement other than the purchase or replacement
of specific items, and (iv) the cost of all contracted labor or other services applicable to each Replacement for which such request for disbursement is made. With each request Borrower shall certify that all Replacements have been made in
accordance with all applicable Legal Requirements of any Governmental Authority having jurisdiction over the applicable Individual Property to which Replacements are being provided. Each request for disbursement shall include copies of invoices for
all items or materials purchased and all contracted labor or services provided and, unless Lender has agreed to issue joint checks as described below in connection with a particular Replacement, each request shall include evidence reasonably
satisfactory to Lender of payment of all such amounts. Except as provided in Section 7.3.2(e) hereof, each request for disbursement from the Replacement Reserve Account shall be made only after completion of the Replacement for which
disbursement is requested. Borrower shall provide Lender evidence of completion of the subject Replacement satisfactory to Lender in its reasonable judgment. 
  
 (d) Borrower shall pay all invoices in connection with the Replacements with respect to which a disbursement is requested prior to submitting such request
for disbursement from the Replacement Reserve Account or, at the request of Borrower, Lender will issue joint checks, payable to Borrower and the contractor, supplier, materialman, mechanic, subcontractor or other party to whom payment is due in
connection with a Replacement. In the case of payments made by joint check, Lender may require a waiver of lien from each Person receiving payment prior to Lender’s disbursement from the Replacement Reserve Account. In addition, as a condition
to any disbursement, Lender may require Borrower to obtain lien waivers from each contractor, supplier, materialman, mechanic or subcontractor who receives payment in an amount equal to or greater than Twenty-five Thousand Dollars ($25,000) for
completion of its work or delivery of its materials. Any lien waiver delivered hereunder shall conform to the requirements of applicable law and shall cover all work performed and materials supplied 

  

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(including equipment and fixtures) for the applicable Individual Property by that contractor, supplier, subcontractor, mechanic or materialman through the
date covered by the current reimbursement request (or, in the event that payment to such contractor, supplier, subcontractor, mechanic or materialmen is to be made by a joint check, the release of lien shall be effective through the date covered by
the previous release of funds request). 
  
 (e) If (i) the cost of
a Replacement exceeds Twenty-five Thousand Dollars ($25,000), (ii) the contractor performing such Replacement requires periodic payments pursuant to terms of a written contract, and (iii) Lender has approved in writing in advance such periodic
payments (such approval not to be unreasonably withheld), a request for reimbursement from the Replacement Reserve Account may be made after completion of a portion of the work under such contract, provided (A) such contract requires payment
upon completion of such portion of the work, (B) the materials for which the request is made are on site at the applicable Individual Property and are properly secured or have been installed in such Individual Property, (C) all other conditions in
this Agreement for disbursement have been satisfied, (D) funds remaining in the Replacement Reserve Account are, in Lender’s reasonable judgment, sufficient to complete such Replacement and other Replacements when required, and (E) if required
by Lender, each contractor or subcontractor receiving payments under such contract shall provide a waiver of lien with respect to amounts which have been paid to that contractor or subcontractor. 
  
 (f) Borrower shall not make a request for disbursement from the Replacement
Reserve Account more frequently than once in any calendar month and (except in connection with the final disbursement) the total cost of all Replacements in any request shall not be less than Twenty-five Thousand Dollars ($25,000). 
  
 (g) At the end of each calendar year during the term of the Loan, provided
that Borrower has completed all PIP Requirements required to be performed during such calendar year to Lender’s reasonable satisfaction, if the cost of completion of such PIP Requirements (the “PIP Completion Amount”) was less
than the Required PIP Amount, then the positive difference between the Required PIP Amount and the PIP Completion Amount, if any (the “Excess PIP Amount”) shall be applied by Lender as follows: (i) an amount equal to ten percent
(10%) of the Excess PIP Amount shall be retained in the Replacement Reserve Account but accounted for as a credit to reduce Borrower’s payment obligation in respect to the aggregate Required PIP Amount to be deposited by Borrower during the
immediately succeeding calendar year, and (ii) any remaining Excess PIP Amount shall in Lender’s sole discretion be either (A) applied to the outstanding principal amount of the Loan, the Mezzanine Loan or the Junior Mezzanine Loan (without the
requirement of any Spread Maintenance Payment, Prepayment Premium or any other penalty or premium) or (B) provided that no Event of Default, Mezzanine Loan Default or Junior Mezzanine Loan Default shall have occurred and be continuing, returned to
Borrower. Notwithstanding the foregoing, the amount calculated as the Excess PIP Amount shall not include any amounts in the Manager Accounts unless the unspent portion of such amounts was released to Borrower and deposited by Borrower with Lender
as required herein. If any amounts on deposit in the Manager Accounts are released, refunded or returned to Borrower or Operating Lessee, Borrower shall, or shall cause Operating Lessee to, deposit such amounts in the Replacement Reserve Fund.

  

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 7.3.3 Performance of Replacements. (a) Borrower shall make Replacements when required in
order to keep each Individual Property in condition and repair consistent with other hotels with the same class of service in the same market segment in the metropolitan area in which the respective Individual Property is located, and to keep each
Individual Property or any portion thereof from deteriorating. Borrower shall complete all Replacements in a good and workmanlike manner as soon as practicable following the commencement of making each such Replacement. 
  
 (b) Lender reserves the right, at its option, to approve all contracts or
work orders with materialmen, mechanics, suppliers, subcontractors, contractors or other parties providing labor or materials in connection with the Replacements. Upon Lender’s request, Borrower shall assign any contract or subcontract to
Lender. 
  
 (c) In the event Lender determines in its reasonable
discretion that any Replacement is not being performed in a workmanlike or timely manner or that any Replacement has not been completed in a workmanlike or timely manner, Lender shall have the option to withhold disbursement for such unsatisfactory
Replacement and to proceed under existing contracts or to contract with third parties to complete such Replacement and to apply the Replacement Reserve Fund toward the labor and materials necessary to complete such Replacement, provided, that Lender
shall provide thirty (30) days prior written notice to Borrower before taking any such action. 
  
 (d) In order to facilitate Lender’s completion or making of such Replacements pursuant to Section 7.3.3(c) above, Borrower grants Lender the right to enter onto any Individual Property and perform any and
all work and labor necessary to complete or make such Replacements and/or employ watchmen to protect such Individual Property from damage. All sums so expended by Lender, to the extent not from the Replacement Reserve Fund, shall be deemed to have
been advanced under the Loan to Borrower and secured by the Mortgages. For this purpose Borrower constitutes and appoints Lender its true and lawful attorney-in-fact with full power of substitution to complete or undertake such Replacements in the
name of Borrower. Such power of attorney shall be deemed to be a power coupled with an interest and cannot be revoked. Borrower empowers said attorney-in-fact as follows: (i) to use any funds in the Replacement Reserve Account for the purpose of
making or completing such Replacements; (ii) to make such additions, changes and corrections to such Replacements as shall be necessary or desirable to complete such Replacements; (iii) to employ such contractors, subcontractors, agents, architects
and inspectors as shall be required for such purposes; (iv) to pay, settle or compromise all existing bills and claims which are or may become Liens against any Individual Property, or as may be necessary or desirable for the completion of such
Replacements, or for clearance of title; (v) to execute all applications and certificates in the name of Borrower which may be required by any of the contract documents; (vi) to prosecute and defend all actions or proceedings in connection with any
Individual Property or the rehabilitation and repair of any Individual Property; and (vii) to do any and every act which Borrower might do in its own behalf to fulfill the terms of this Agreement. 
  
 (e) Nothing in this Section 7.3.3 shall: (i) make Lender responsible
for making or completing any Replacements; (ii) require Lender to expend funds in addition to the Replacement Reserve Fund to make or complete any Replacement; (iii) obligate Lender to 

  

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proceed with any Replacements; or (iv) obligate Lender to demand from Borrower additional sums to make or complete any Replacement. 
  
 (f) Borrower shall permit Lender and Lender’s agents and representatives
(including, without limitation, Lender’s engineer, architect, or inspector) or third parties making Replacements pursuant to this Section 7.3.3 to enter onto each Individual Property during normal business hours (subject to the rights of
tenants under their Leases) to inspect the progress of any Replacements and all materials being used in connection therewith, to examine all plans and shop drawings relating to such Replacements which are or may be kept at each Individual Property,
and to complete any Replacements made pursuant to this Section 7.3.3. Borrower shall cause all contractors and subcontractors to cooperate with Lender or Lender’s representatives or such other persons described above in connection with
inspections described in this Section 7.3.3(f) or the completion of Replacements pursuant to this Section 7.3.3. 
  
 (g) Lender may require an inspection of the Individual Property at Borrower’s expense prior to making a monthly disbursement from the Replacement
Reserve Account in order to verify completion of the Replacements for which reimbursement is sought. Lender may require that such inspection be conducted by an appropriate independent qualified professional selected by Lender (after consultation
with Borrower) and/or may require a copy of a certificate of completion by an independent qualified professional reasonably acceptable to Lender prior to the disbursement of any amounts from the Replacement Reserve Account. Borrower shall pay the
expense of the inspection as required hereunder, whether such inspection is conducted by Lender or by an independent qualified professional. 
  
 (h) The Replacements and all materials, equipment, fixtures, or any other item comprising a part of any Replacement shall be constructed, installed or
completed, as applicable, free and clear of all mechanic’s, materialmen’s or other liens (except for those Liens existing on the date of this Agreement which have been approved in writing by Lender). 
  
 (i) Before each disbursement from the Replacement Reserve Account, Lender may
require Borrower to provide Lender with a search of title to the applicable Individual Property effective to the date of the disbursement, which search shows that no mechanic’s or materialmen’s liens or other liens of any nature have been
placed against the applicable Individual Property since the date of recordation of the related Mortgage and that title to such Individual Property is free and clear of all Liens (other than the lien of the related Mortgage and any other Liens
previously approved in writing by Lender, if any). 
  
 (j) All
Replacements shall comply with all applicable Legal Requirements of all Governmental Authorities having jurisdiction over the applicable Individual Property and applicable insurance requirements including, without limitation, applicable building
codes, special use permits, environmental regulations, and requirements of insurance underwriters. 
  
 (k) In addition to any insurance required under the Loan Documents, Borrower shall provide or cause to be provided workmen’s compensation insurance,
builder’s risk, and public liability insurance and other insurance to the extent required under applicable law in connection with a particular Replacement. All such policies shall be in form and amount reasonably satisfactory to Lender. All
such policies which can be endorsed with 

  

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standard mortgagee clauses making loss payable to Lender or its assigns shall be so endorsed. Certified copies of such policies shall be delivered to Lender.

  
 7.3.4 Failure to Make Replacements. (a)
It shall be an Event of Default under this Agreement if Borrower fails to comply with any provision of this Section 7.3 and such failure is not cured within thirty (30) days after notice from Lender. Upon the occurrence of such an Event of
Default, Lender may use the Replacement Reserve Fund (or any portion thereof) for any purpose, including but not limited to completion of the Replacements as provided in Section 7.3.3, or for any other repair or replacement to any Individual
Property or toward payment of the Debt in such order, proportion and priority as Lender may determine in its sole discretion. Lender’s right to withdraw and apply the Replacement Reserve Funds shall be in addition to all other rights and
remedies provided to Lender under this Agreement and the other Loan Documents. 
  
 (b) Nothing in this Agreement shall obligate Lender to apply all or any portion of the Replacement Reserve Fund on account of an Event of Default to payment of the Debt or in any specific order or priority.

  
 7.3.5 Balance in the Replacement Reserve
Account. The insufficiency of any balance in the Replacement Reserve Account shall not relieve Borrower from its obligation to fulfill all preservation and maintenance covenants in the Loan Documents. 
  
 Section 7.4 Ground Lease Reserve. 
  
 7.4.1 Deposits to Ground Lease Reserve Fund. On each
Payment Date occurring during the months of May through and including October and on each Payment Date occurring during the month of December one-seventh (1/7th) of the rents (including both base and additional rents) and other charges due under the Ground Lease that Lender reasonably estimates will be payable by Borrower as lessee under the Ground Lease
(collectively, the “Ground Rent”) during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Ground Rent at least thirty (30) days prior to the respective due dates. Amounts so
deposited shall hereinafter be referred to as the “Ground Lease Reserve Fund” and the account in which such amounts are held shall hereinafter be referred to as the “Ground Lease Reserve Account.” 
  
 7.4.2 Release of Ground Lease Reserve Fund. Lender shall
have the right to apply amounts in the Ground Lease Reserve Fund to the payment of the Ground Rent. In making any payment relating to the Ground Rent, Lender may do so according to any bill, statement or estimate procured from the lessor under the
Ground Lease, without inquiry into the accuracy of such bill, statement or estimate. If the amount of Ground Lease Reserve Funds shall exceed the amounts due for the Ground Rent under the Ground Lease for the immediately succeeding twelve (12)
months as determined by Lender, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future payments to be made to the Ground Lease Reserve Fund. Any amounts remaining in the Ground Lease Reserve Fund
after the Debt has been paid in full shall be returned to Borrower. If at any time Lender reasonably determines that the Ground Lease Reserve Fund is not or will not be sufficient to pay the Ground Rent by the dates set forth above, Lender shall
notify Borrower of such determination and 

  

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Borrower shall increase its monthly payments to Lender by the amount that Lender reasonably estimates is sufficient to make up the deficiency at least thirty
(30) days prior to the due date of the Ground Rent. 
  
 Section
7.5 Debt Service Reserve. On the Closing Date, Borrower shall deposit with Lender an amount equal to Five Million Two Hundred Fifty Thousand Dollars ($5,250,000) (said amount, hereinafter, the “Debt Service Reserve
Fund,” and the account in which such amount is held, hereinafter, the “Debt Service Reserve Account”) for the purpose of funding an escrow fund for the payment of Debt Service and any other amounts due under this Agreement
and the other Loan Documents. On each Payment Date occurring on and after the first (1st) anniversary of the first
(1st) Payment Date, Lender shall apply the Debt Service Reserve Fund in an amount equal to the Monthly Debt Service
Payment Amount, which amount shall be deposited into the Cash Management Account for disbursement in accordance therewith, provided that, as of each such Payment Date, the Debt Service Coverage Ratio for the Properties for the immediately
preceding twelve (12) month period shall be equal to or greater than 1.65 to 1.0. The insufficiency of any balance in the Debt Service Reserve Account shall not relieve Borrower from its obligation to pay Debt Service and any other amounts as
required under this Agreement and the other Loan Documents. In lieu of making the deposit (or any portion thereof) to the Debt Service Reserve Account required pursuant to this Section 7.5, Borrower may deliver to Lender an irrevocable letter
of credit (payable on sight draft only) in an amount equal to the amount that is otherwise required to be deposited into the Debt Service Reserve Account issued by a domestic financial institution having a rating by S&P and Fitch of not less
than “AA” and “Aa2” by Moody’s if the term of such letter of credit is no longer than three (3) months or, if such term is in excess of three (3) months, issued by a financial institution having a rating that the Rating
Agencies have confirmed in writing will not, in and of itself, result in a downgrade, withdrawal or qualification of the initial, or, if higher, the highest then current ratings assigned in connection with any Securitization, which letter of credit
shall be otherwise acceptable in form and substance to Lender and Borrower shall pay to Lender all of Lender’s reasonable out-of-pocket costs and expenses in connection therewith, including any fee charged by the Rating Agencies. Prior to the
return of any such letter of credit, Borrower shall deposit with Lender an amount equal to the amount that would have accumulated in the Debt Service Reserve Account and not been disbursed in accordance with this Section 7.5 if the letter of
credit had not been delivered. Any such letter of credit shall be additional security for Borrower’s obligations under the Loan Documents. Lender shall have the right to draw in full upon any letter of credit: (i) if Lender has not received at
least fifteen (15) Business Days prior to the date on which the then outstanding letter of credit is scheduled to expire, a notice from the issuing financial institution that it has renewed the applicable letter of credit; (ii) upon receipt of
notice from the issuing financial institution that the applicable letter of credit will be terminated; (iii) ten (10) days after Lender has given notice to Borrower that the financial institution issuing the applicable letter of credit ceases to
meet the rating requirement set forth in this Section 7.5; and (iv) upon the occurrence of an Event of Default. 
  
 Section 7.6 CSFB Assets Escrow Fund. On the Closing Date, Borrower shall deposit with Lender an amount equal to Two Million Seven
Hundred Thousand Dollars ($2,700,000) (said amount, hereinafter, the “CSFB Assets Escrow Fund”). The CSFB Escrow Fund shall be either (a) disbursed to Borrower in its entirety upon the acquisition by an Affiliate of Borrower of
those certain CSFB Assets pursuant to the terms of the Purchase Agreement, 

  

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provided that such acquisition occurs on or before December 31, 2002, or (b) applied by Lender on the Payment Date occurring in January 2003 in accordance
with Section 2.4.4 hereof without any Prepayment Premium or Spread Maintenance Payment (a “CSFB Assets Prepayment”) if such acquisition of the CSFB Assets has not occurred on or before December 31, 2002. Upon any such
prepayment pursuant to this Section 7.6, the amount of principal due each month shall be recomputed based upon a level payment of principal and interest based upon the aggregate outstanding principal balances of the Loan, the Mezzanine Loan
and the Junior Mezzanine Loan remaining following such prepayment, a debt service constant equal to seven and one quarter percent (7.25%) and an amortization schedule of three hundred (300) months less the number of months from the first
(1st) day of the calendar month following the Closing Date to the date of such prepayment. Amortization shall be
calculated based on a thirty (30) day month and a three hundred sixty (360) day year accrual period. 
  
 Section 7.7 Liquidity Reserve. On the Closing Date, Borrower shall deposit with Lender an amount equal to Four Hundred Fifty-Four
Thousand Nine Hundred Seventeen Dollars ($454,917) and Borrower shall deposit with Lender an amount equal to Two Hundred Fifteen Thousand Dollars ($215,000) on each Payment Date occurring during the months of August through and including December
(said amounts, hereinafter, the “Liquidity Reserve Fund”) for the purpose of funding a liquidity reserve fund for the payment of Debt Service and any other amounts due under this Agreement and the other Loan Documents and for debt
service and other amounts due under the Mezzanine Loan and the Junior Mezzanine Loan. If on any Payment Date, there is a shortfall in any of the amounts due under this Agreement and the other Loan Documents or any amounts due under the Mezzanine
Loan or the Junior Mezzanine Loan, then Lender shall withdraw an amount equal to such shortfall amount from the amounts on deposit in the Liquidity Reserve Fund and deposit such amount into the Cash Management Account to be applied in accordance
with the Cash Management Agreement in order to pay such shortfall amount. No Event of Default shall occur by reason of Borrower’s failure to deposit into the Liquidity Reserve Fund the amounts required under this Section 7.7, provided
that the insufficiency of any balance in the Liquidity Reserve Fund shall not relieve Borrower from its obligation to pay Debt Service and any other amounts as required under this Agreement and the other Loan Documents and debt service and any other
amounts as required under the Mezzanine Loan and the Junior Mezzanine Loan. 
  
 Section 7.8 Reserve Funds, Generally. Borrower grants to Lender a first-priority perfected security interest in each of the Reserve Funds and any and all monies now or hereafter deposited in each
Reserve Fund as additional security for payment of the Debt. Until expended or applied in accordance herewith, the Reserve Funds shall constitute additional security for the Debt. Upon the occurrence of an Event of Default, Lender may, in addition
to any and all other rights and remedies available to Lender, apply any sums then present in any or all of the Reserve Funds to the payment of the Debt in any order in its sole discretion. The Reserve Funds shall not constitute trust funds and may
be commingled with other monies held by Lender. The Reserve Funds shall be held in an Eligible Account in Permitted Investments in accordance with the terms and provisions of the Cash Management Agreement. All interest on a Reserve Fund (with the
exception of the Required Repair Fund) shall not be added to or become a part thereof and shall be the sole property of and shall be paid to Lender. All interest earned on the Required Repair Fund shall be added to and become a part of such Required
Repair Fund and shall be disbursed in the same manner as other monies deposited in the Required Repair Fund. 

  

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Borrower shall be responsible for payment of any federal, state or local income or other tax applicable to the interest earned on the Reserve Funds. Borrower
shall not, without obtaining the prior written consent of Lender, further pledge, assign or grant any security interest in any Reserve Fund or the monies deposited therein or permit any lien or encumbrance to attach thereto, or any levy to be made
thereon, or any UCC-1 Financing Statements, except those naming Lender as the secured party, to be filed with respect thereto. Lender shall not be liable for any loss sustained on the investment of any funds constituting the Reserve Funds. Borrower
shall indemnify Lender and hold Lender harmless from and against any and all actions, suits, claims, demands, liabilities, losses, damages, obligations and costs and expenses (including litigation costs and reasonable attorneys fees and expenses)
arising from or in any way connected with the Reserve Funds or the performance of the obligations for which the Reserve Funds were established. Borrower shall assign to Lender all rights and claims Borrower may have against all persons or entities
supplying labor, materials or other services which are to be paid from or secured by the Reserve Funds; provided, however, that Lender may not pursue any such right or claim unless an Event of Default has occurred and remains uncured.
Notwithstanding anything to the contrary contained herein, any amounts remaining in the Reserve Funds after the Debt has been paid in full shall be deposited either (a) into the Mezzanine Debt Service Account to be disbursed in accordance with the
terms of the Mezzanine Loan Documents, or (b) if the Mezzanine Loan has been satisfied in full, into the Junior Mezzanine Debt Service Account to be disbursed in accordance with the terms of the Junior Mezzanine Loan Documents. 
  

	 	VIII. 	DEFAULTS 

  
 Section 8.1 Event of Default. (a) Each of the following events shall constitute an event of default hereunder (an “Event of
Default”): 
  
 (i) if any portion of the
Debt is not paid when due; 
  
 (ii) if any of the
Taxes or Other Charges are not paid when the same are due and payable, other than Taxes being contested pursuant to Section 5.1.2 and Taxes funded by Borrower pursuant to Section 7.2; 
  
 (iii) if the Policies are not kept in full force and effect,
or if certified copies of the Policies are not delivered to Lender upon request; 
  
 (iv) if Borrower Transfers or otherwise encumbers any portion of the Collateral or the Properties without Lender’s prior written
consent in violation of the provisions of this Agreement, the Pledge Agreements and Article 6 of any Mortgage or any Transfer is made in violation of the provisions of Section 5.2.10 hereof; 
  
 (v) if any representation or warranty made by Borrower
herein or in any other Loan Document, or in any report, certificate, financial statement or other instrument, agreement or document furnished to Lender shall have been false or misleading in any material respect as of the date the representation or
warranty was made; 
  

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 (vi) if Borrower, Principal, Operating Lessee, Limited Guarantor, Guarantor or any other
guarantor under any guaranty issued in connection with the Loan shall make an assignment for the benefit of creditors; 
  
 (vii) if a receiver, liquidator or trustee shall be appointed for Borrower, Principal, Operating Lessee, Limited Guarantor, Guarantor or
any other guarantor under any guarantee issued in connection with the Loan or if Borrower, Principal, Operating Lessee, Limited Guarantor, Guarantor or such other guarantor shall be adjudicated a bankrupt or insolvent, or if any petition for
bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by or against, consented to, or acquiesced in by, Borrower, Principal, Operating Lessee, Limited Guarantor, Guarantor
or such other guarantor, or if any proceeding for the dissolution or liquidation of Borrower, Principal, Operating Lessee, Limited Guarantor, Guarantor or such other guarantor shall be instituted; provided, however, if such
appointment, adjudication, petition or proceeding was involuntary and not consented to by Borrower, Principal, Operating Lessee, Limited Guarantor, Guarantor or such other guarantor, upon the same not being discharged, stayed or dismissed within
thirty (30) days; 
  
 (viii) if Borrower attempts
to assign its rights under this Agreement or any of the other Loan Documents or any interest herein or therein in contravention of the Loan Documents; 
  
 (ix) if Borrower breaches any covenant contained in Section 4.1.30 hereof; 
  
 (x) with respect to any term, covenant or provision set
forth herein which specifically contains a notice requirement or grace period, if Borrower shall be in default under such term, covenant or condition after the giving of such notice or the expiration of such grace period; 
  
 (xi) if any of the assumptions contained in the Insolvency
Opinion delivered to Lender in connection with the Loan, or in any Additional Insolvency Opinion delivered subsequent to the closing of the Loan, is or shall become untrue in any material respect; 
  
 (xii) if a material default on the part of Borrower or
Operating Lessee has occurred and continues beyond any applicable cure period under any Management Agreement and if such default permits the Manager thereunder to terminate or cancel the Management Agreement; 
  
 (xiii) if Borrower shall continue to be in Default under any
of the terms, covenants or conditions of Section 9.1 hereof, or fails to cooperate with Lender in connection with a Securitization pursuant to the provisions of Section 9.1 hereof, for five (5) days after notice to Borrower from
Lender; 
  

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 (xiv) if Borrower shall continue to be in Default under any of the other terms, covenants
or conditions of this Agreement not specified in subsections (i) to (xii) above, for ten (10) days after notice to Borrower from Lender, in the case of any Default which can be cured by the payment of a sum of money, or for thirty (30)
days after notice from Lender in the case of any other Default; provided, however, that if such non-monetary Default is susceptible of cure but cannot reasonably be cured within such thirty (30) day period and provided,
further, that Borrower shall have commenced to cure such Default within such thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for such time as is
reasonably necessary for Borrower in the exercise of due diligence to cure such Default, such additional period not to exceed ninety (90) days; 
  
 (xv) if there shall be default under any of the other Loan Documents beyond any applicable cure periods contained in such documents,
whether as to Borrower, Operating Lessee, the Collateral or any Individual Property, or if any other such event shall occur or condition shall exist, if the effect of such default, event or condition is to accelerate the maturity of any portion of
the Debt or to permit Lender to accelerate the maturity of all or any portion of the Debt; 
  
 (xvi) if a material default has occurred and continues beyond any applicable cure period under any Franchise Agreement and if such default
permits the Franchisor thereunder to terminate or cancel the Franchise Agreement; 
  
 (xvii) if Borrower ceases to do business as a hotel at the Properties or terminates such business for any reason whatsoever (other than
temporary cessation in connection with any continuous and diligent renovation or restoration of any Individual Property following a Casualty or Condemnation); 
  

(xviii) if (A) a breach or default by Borrower or Operating Lease under any condition or obligation contained in the Ground Lease is
not cured within any applicable cure period provided therein, (B) there occurs any event or condition that gives the lessor under the Ground Lease a right to terminate or cancel the Ground Lease, or (C) the related Individual Property subject to any
Ground Lease shall be surrendered or the Ground Lease shall be terminated or cancelled for any reason or under any circumstances whatsoever, or (D) any of the terms, covenants or conditions of the Ground Lease shall in any manner be materially
modified, changed, supplemented, altered, or amended without the prior written consent of Lender; or 
  
 (xix) if (A) a material default has occurred and continues beyond any applicable cure period under any Operating Lease, (B) any Operating
Lease is amended, modified or terminated in violation of the terms of this Agreement, or (C) Borrower fails to enforce the material terms and provisions of each Operating Lease, or (D) any Operating Rent Credits remain outstanding in violation of
the terms of this Agreement; provided however, if the default is for the failure to pay 

  

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rent under the Operating Lease, it shall not be a default until thirty (30) days following the expiration of any applicable cure period under the Operating
Lease. 
  
 (b) Upon the occurrence of an Event of Default (other
than an Event of Default described in clauses (vi), (vii) or (viii) above) and at any time thereafter, in addition to any other rights or remedies available to it pursuant to this Agreement and the other Loan Documents or at law or in equity, Lender
may take such action, without notice or demand, that Lender deems advisable to protect and enforce its rights against Borrower and in and to all or any of the Properties or the Collateral, including, without limitation, declaring the Debt to be
immediately due and payable, and Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower and any or all of the Properties or the Collateral, including, without limitation, all rights or
remedies available at law or in equity; and upon any Event of Default described in clause (vi), (vii) or (viii) above, the Debt and Other Obligations of Borrower hereunder and under the other Loan Documents shall immediately and automatically become
due and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand, anything contained herein or in any other Loan Document to the contrary notwithstanding. 
  
 Section 8.2 Remedies. (a) Upon the occurrence of an
Event of Default, all or any one or more of the rights, powers, privileges and other remedies available to Lender against Borrower under this Agreement or any of the other Loan Documents executed and delivered by, or applicable to, Borrower or at
law or in equity may be exercised by Lender at any time and from time to time, whether or not all or any of the Debt shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action for the
enforcement of its rights and remedies under any of the Loan Documents with respect to all or any part of any Individual Property or the Collateral. Any such actions taken by Lender shall be cumulative and concurrent and may be pursued
independently, singularly, successively, together or otherwise, at such time and in such order as Lender may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and
remedies of Lender permitted by law, equity or contract or as set forth herein or in the other Loan Documents. Without limiting the generality of the foregoing, Borrower agrees that if an Event of Default is continuing (i) Lender is not subject to
any “one action” or “election of remedies” law or rule, and (ii) all liens and other rights, remedies or privileges provided to Lender shall remain in full force and effect until Lender has exhausted all of its remedies against
the Properties and the Collateral and each Mortgage and the Collateral has been foreclosed, sold and/or otherwise realized upon in satisfaction of the Debt or the Debt has been paid in full. 
  
 (b) With respect to Borrower, the Collateral and the Properties, nothing
contained herein or in any other Loan Document shall be construed as requiring Lender to resort to any Individual Property for the satisfaction of any of the Debt in any preference or priority to any portion of the Collateral or to any other
Individual Property, and Lender may seek satisfaction out of all of the Collateral or the Properties, or any part thereof, in its absolute discretion in respect of the Debt. In addition, Lender shall have the right from time to time to partially
foreclose the Collateral or the Mortgages in any manner and for any amounts secured by the Pledge Agreements or the Mortgages then due and payable as determined by Lender in its sole discretion including, without limitation, the following
circumstances: (i) in the event Borrower defaults beyond any applicable grace period in the payment of one or more scheduled 

  

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payments of principal and interest, Lender may foreclose upon the Collateral and/or one or more of the Mortgages to recover such delinquent payments or (ii)
in the event Lender elects to accelerate less than the entire outstanding principal balance of the Loan, Lender may foreclose upon the Collateral and/or one or more of the Mortgages to recover so much of the principal balance of the Loan as Lender
may accelerate and such other sums secured by the Collateral and/or one or more of the Mortgages as Lender may elect. Notwithstanding one or more partial foreclosures, the Collateral shall remain subject to the Pledge Agreements and the Properties
shall remain subject to the Mortgages to secure payment of sums secured by the Pledge Agreements and the Mortgages and not previously recovered. 
  
 (c) Lender shall have the right from time to time to sever the Note and the other Loan Documents into one or more separate notes, mortgages and other
security documents (the “Severed Loan Documents”) in such denominations as Lender shall determine in its sole discretion for purposes of evidencing and enforcing its rights and remedies provided hereunder. Borrower shall execute and
deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and such other documents as Lender shall request in order to effect the severance described in the preceding sentence, all in form and substance
reasonably satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead to make and execute all documents necessary or desirable to effect the
aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue thereof; provided, however, Lender shall not make or execute any such documents under such power until three (3) days after notice has been given to
Borrower by Lender of Lender’s intent to exercise its rights under such power. Provided no Event of Default shall have occurred and be continuing, Lender shall be obligated to pay any costs or expenses incurred in connection with the
preparation, execution, recording or filing of the Severed Loan Documents. The Severed Loan Documents shall not contain any representations, warranties or covenants not contained in the Loan Documents and any such representations and warranties
contained in the Severed Loan Documents will be given by Borrower only as of the Closing Date. 
  
 (d) Any amounts recovered from the Collateral and/or the Properties during the occurrence of an Event of Default may be applied by Lender toward the payment of any interest and/or principal of the Loan and/or any
other amounts due under the Loan Documents in such order, priority and proportions as Lender in its sole discretion shall determine. 
  
 Section 8.3 Remedies Cumulative; Waivers. The rights, powers and remedies of Lender under this Agreement shall be cumulative and not
exclusive of any other right, power or remedy which Lender may have against Borrower pursuant to this Agreement or the other Loan Documents, or existing at law or in equity or otherwise. Lender’s rights, powers and remedies may be pursued
singularly, concurrently or otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion. No delay or omission to exercise any remedy, right or power accruing upon an Event of Default shall impair any such
remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient. A waiver of one Default or Event of Default with respect to Borrower
shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any remedy, right or power consequent thereon. 
  

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	 	IX.	SPECIAL PROVISIONS 

  
 Section 9.1 Sale of Notes and Securitization. Borrower acknowledges and agrees that Lender may sell all or any portion of the Loan
and the Loan Documents, or issue one or more participations therein, or consummate one or more private or public securitizations of rated single- or multi-class securities (the “Securities”) secured by or evidencing ownership
interests in all or any portion of the Loan and the Loan Documents or a pool of assets that include the Loan and the Loan Documents (such sales, participations and/or securitizations, collectively, a “Securitization”). At the
request of Lender, and to the extent not already required to be provided by or on behalf of Borrower under this Agreement, Borrower shall use reasonable efforts to provide information not in the possession of Lender or which may be reasonably
required by Lender or take other actions reasonably required by Lender, in each case in order to satisfy the market standards to which Lender customarily adheres or which may be reasonably required by prospective investors and/or the Rating Agencies
in connection with any such Securitization, including, without limitation, to: 
  
 (a) provide additional and/or updated Provided Information, together with appropriate verification and/or consents related to the Provided Information through letters of auditors or opinions of counsel of independent
attorneys reasonably acceptable to Lender, prospective investors and/or the Rating Agencies; 
  
 (b) assist in preparing descriptive materials for presentations to any or all of the Rating Agencies, and, work with, and if requested, supervise, third-party service providers engaged by Borrower and approved by
Lender, Principal and their respective affiliates to obtain, collect and deliver information requested or required by Lender, prospective investors and/or the Rating Agencies; 
  
 (c) deliver (i) an Additional Insolvency Opinion and an opinion with respect to due execution and enforceability with
respect to the Collateral, the Properties, Borrower, Principal, Operating Lessee, Limited Guarantor, Guarantor and their respective Affiliates and the Loan Documents, including, without limitation, a so-called “10b-5” opinion, and (ii)
revised organizational documents for Borrower, which counsel opinions and organizational documents shall be reasonably satisfactory to Lender, prospective investors and/or the Rating Agencies; 
  
 (d) if required by any prospective investor and/or any Rating Agency, use
commercially reasonable efforts to deliver such additional tenant estoppel letters, subordination agreements or other agreements from parties to agreements that affect the Properties and/or the Collateral, which estoppel letters, subordination
agreements or other agreements shall be reasonably satisfactory to Lender, prospective investors and/or the Rating Agencies; 
  
 (e) make such representations and warranties as of the closing date of the Securitization with respect to the Collateral, the Properties, Borrower,
Principal, Operating Lessee, Limited Guarantor, Guarantor and the Loan Documents as may be reasonably requested by Lender, prospective investors and/or the Rating Agencies and consistent with the facts covered by such representations and warranties
as they exist on the date thereof, including the representations and warranties made in the Loan Documents; 
  

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 (f) execute such amendments to the Loan Documents as may be reasonably requested by Lender, prospective
investors and/or the Rating Agencies to effect the Securitization, including, without limitation, amending the sequence and priority of the application of Rents (but not the amount of payments required) under the Cash Management Agreement, provided
that no such amendments shall result in a material adverse change in the Loan and, with respect to the sequence and priority of the application of Rents under the Cash Management Agreement, shall not have a material adverse effect on Borrower;

  
 (g) if requested by Lender, review any information regarding
the Collateral, the Properties, Borrower, Operating Lessees, Principal, Limited Guarantor, Guarantor, Manager and the Loan which is contained in a preliminary or final private placement memorandum, prospectus, prospectus supplement (including any
amendment or supplement to either thereof), or other disclosure document to be used by Lender or any affiliate thereof provided that Lender gives Borrower all such documents and a reasonable time period to review such documents and Lender agrees to
use good faith efforts to incorporate any comments of Borrower with respect to the Properties, Borrower, Operating Lessees, Principal, Limited Guarantor, Guarantor and Manager; and 
  
 (h) supply to Lender such documentation, financial statements and reports in form and substance required in order to comply
with any applicable securities laws. 
  
 9.1.2 Loan
Components; Mezzanine Loan. (a) Notwithstanding the provisions of Section 9.1 to the contrary, but subject to Section 9.1.2(c), Borrower covenants and agrees that in connection with any Securitization of the Loan, upon
Lender’s request Borrower shall deliver one or more new component notes to replace the original note or modify the original note and/or the other Loan Documents, as applicable, to reallocate the principal amount and/or change the spread of each
of the Components or to reflect additional components of the Loan (and such new notes or modified note shall have the same initial weighted average spread as the original note, but such new notes or modified note may subsequently change the weighted
average spread and apply principal, interest rates and amortization of the Loan between the components in a manner specified by Lender in its sole discretion), and modify the Cash Management Agreement and/or resize the Interest Rate Cap Agreements
with respect to the newly created components such that the pricing and marketability of the Securities and the size of each class of Securities and the rating assigned to each such class by the Rating Agencies shall provide the most favorable rating
levels and achieve the optimum bond execution for the Loan. 
  
 (b) Notwithstanding the provisions of Section 9.1 to the contrary, but subject to Section 9.1.2(c), Borrower covenants and agrees that after the Closing Date and prior to a Securitization, Lender shall have the right to
establish different interest rates and to reallocate the amortization and principal balances (including, without limitation, the reallocation of the Release Amounts on a pro-rata basis) of each of the Loan, the Mezzanine Loan and the Junior
Mezzanine Loan amongst each other and to require the payment of the Loan, the Mezzanine Loan and the Junior Mezzanine Loan in such order of priority as may be designated by Lender; provided, that the (i) initial weighted average spread of the
Loan, the Mezzanine Loan and the Junior Mezzanine Loan following any such reallocation or modification shall not be changed from the initial weighted average spread in effect immediately preceding such reallocation or modification, (ii) the
amortization based on the aggregate principal balances of the Loan, the 

  

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Mezzanine Loan and the Junior Mezzanine Loan immediately preceding such reallocation or modification shall remain the same in the aggregate following any
such reallocation or modification, but, provided further that such modifications may subsequently change the weighted average spread and apply principal, interest rates and amortization between and among the Loan, the Mezzanine Loan and the Junior
Mezzanine Loan in a manner specified by Lender in its sole discretion, and (iii) in no event shall the principal balances of the Loan, the Mezzanine Loan and the Junior Mezzanine Loan be reallocated such that the sum of the aggregate principal
balances of the Mezzanine Loan and the Junior Mezzanine Loan exceed $102,500,000. 
  
 (c) Notwithstanding the provisions of Section 9.1 to the contrary, Lender agrees that any reallocation of the Release Amounts of the Properties associated with Section 9.1.2(b) will be made on a pro-rata
basis across the Loan, the Mezzanine Loan and the Junior Mezzanine Loan. In addition, as set forth in the Junior Mezzanine Loan Documents and the Mezzanine Loan Documents, respectively, a Deleveraging Prepayment shall be applied first to the Junior
Mezzanine Loan, until the Junior Mezzanine Loan is paid in full and then to the Mezzanine Loan, until the Mezzanine Loan is paid in full and then to the Loan. 
  

(d) Notwithstanding the provisions of Section 9.1 to the contrary, but subject to Section 9.1.2(c), Borrower covenants and agrees that if
Junior Mezzanine Lender elects in its sole discretion to allocate a portion of the Payment Guaranty (as defined in the Junior Mezzanine Loan Agreement) so as to provide for a portion of the Mezzanine Loan and/or the Loan to be guaranteed pursuant to
a payment guaranty with substantially the same terms and provisions as the Payment Guaranty, then Borrower shall cooperate with Lender in connection therewith, including, without limitation, with respect to the Mezzanine Loan, the Junior Mezzanine
Loan and the Loan, revising or preparing and delivering new Insolvency Opinions and enforceability opinions and executing and delivering such other new or revised loan documents as may be necessary to evidence such reallocation of the Payment
Guaranty. 
  
 (e) Borrower shall execute and deliver such
documents as shall reasonably be required by Lender in connection with this Section 9.1.2, all in form and substance reasonably satisfactory to Lender and the Rating Agencies. In the event Borrower fails to execute and deliver such documents
to Lender within five (5) Business Days following such request by Lender, Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead to make and execute all documents
necessary or desirable to effect such transactions, Borrower ratifying all that such attorney shall do by virtue thereof. It shall be an Event of Default under this Agreement, the Note, the Mortgages and the other Loan Documents if Borrower fails to
promptly comply with any of the terms, covenants or conditions of this Section 9.1.2. 
  
 9.1.3 Securitization Costs. All reasonable third party costs and expenses incurred by Borrower (except any legal fees and expenses which shall be paid by Borrower) in connection with
Borrower’s complying with requests made under this Section 9.1 (including, without limitation, the fees and expenses of the Rating Agencies) shall be paid by Lender. 
  
 9.1.4 Property Removal. If at any time following the Closing Date and in connection with a
Securitization BSCMI shall elect to remove any Individual Property from such Securitization (the “Affected Property”), Lender shall have the right to (i) sever or divide the 

  

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Note and the other Loan Documents in order to allocate to such Affected Property a new note and other loan documents (collectively, the “New
Note”), evidencing a separate loan in the amount of the Adjusted Release Amount applicable to such Affected Property, including the transfer of the applicable portion of each of the Reserve Funds relating to the Affected Property, and (ii)
release any cross-default and/or cross-collateralization provisions applicable to such Affected Property; provided, that such New Note secured by such Affected Property, together with the Loan Documents secured by the remaining Properties,
shall not increase in the aggregate (A) any monetary obligation of Borrower under the Loan Documents, or (B) any other obligation of Borrower under the Loan Documents in any material respect. In connection with the transfer of any such Affected
Property as provided for in this Section 9.1.4, the Loan shall be reduced by an amount equal to the Adjusted Release Amount applicable to such Affected Property in accordance with Section 2.4.4 hereof and the new loan secured by such
Affected Property and evidenced by the New Note shall be in an amount equal to such Adjusted Release Amount. Subsequent to the release of the Affected Property from the lien of the Loan pursuant to this Section 9.1.4, the balances of the
Components of the Loan shall be the same as they would have been had a prepayment occurred in an amount equal to the Adjusted Release Amount of the Affected Property. The interest rate of the New Note shall be based on LIBOR, with a spread such that
the aggregate interest payable on the Loan and the New Note in the Interest Period immediately following such release shall be the same as if such release had not occurred. At the request of Lender, Borrower shall transfer the Affected Property to a
newly-created Special Purpose Entity and shall otherwise cooperate with BSCMI and Lender in their attempt to satisfy all requirements necessary in order for BSCMI to obtain written confirmation from the Rating Agencies that such transfer of the
Affected Property from the Securitization and splitting of the Loan shall not cause a downgrade, withdrawal or qualification of the then current ratings of the Securities or any class thereof, which requirements shall include, without limitation:
(A) delivery of evidence that the single purpose nature and bankruptcy remoteness of Borrower following such release have not been adversely affected and are in accordance with the terms and provisions of this Agreement (which evidence may include a
“bring-down” of the Insolvency Opinion); and (B) the execution of such documents and instruments and delivery by BSCMI of such opinions of counsel as are typical for similar transactions, including an opinion of counsel that the release of
the Affected Property will not be a “significant modification” of this Loan within the meaning of Section 1.1001-3 of the regulations of the United States Department of the Treasury and that all other requirements applicable, if any, to a
REMIC Trust have been satisfied or have not otherwise been violated. Notwithstanding the foregoing, in no event shall Borrower, in connection with the transfer of the Affected Property, the splitting of the Loan or BSCMI’s or Lender’s
attempt to obtain written confirmation from the Rating Agencies that such transfer of the Affected Property and splitting of the Loan shall not cause a downgrade, withdrawal or qualification of the then current ratings of the Securities or any class
thereof, be obligated to satisfy any requirement of the Rating Agencies or enter into any amendment or modification of the Loan Documents which would, in the aggregate, increase any monetary or other material obligation of Borrower under the Loan
Documents. Provided that no Event of Default shall have occurred and be continuing under the Loan Documents, Lender shall cause all reasonable costs and expenses incurred by Borrower in connection with this Section 9.1.4 (including, without
limitation, any costs and expenses incurred by Borrower in connection with the transfer of the Affected Property to a Special Purpose Entity and the maintenance and operation of such Special Purpose Entity) to be paid by BSCMI. 
  

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 Section 9.2 Securitization Indemnification. (a) Borrower understands that certain of
the Provided Information may be included in Disclosure Documents in connection with the Securitization and may also be included in filings with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the
“Securities Act”), or the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or provided or made available to investors or prospective investors in the Securities, the Rating Agencies, and service
providers relating to the Securitization. In the event that the Disclosure Document is required to be revised prior to the sale of all Securities, Borrower will cooperate with the holder of the Note in updating the Disclosure Document by providing
all current information necessary to keep the Disclosure Document accurate and complete in all material respects. 
  
 (b) The Indemnifying Persons agree to provide, in connection with the Securitization, an indemnification agreement (A) certifying that (i) the
Indemnifying Persons have carefully examined the Disclosure Documents, including without limitation, the sections entitled “Risk Factors,” “Special Considerations,” “Description of the Mortgages,” “Description of
the Mortgage Loans and Mortgaged Properties,” “The Manager,” “The Borrower” and “Certain Legal Aspects of the Mortgage Loan,” and (ii) such sections and such other information in the Disclosure Documents (to the
extent such information relates to or includes any Provided Information or any information regarding the Collateral, the Properties, Borrower, Manager and/or the Loan) (collectively with the Provided Information, the “Covered Disclosure
Information”) do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, (B) jointly
and severally indemnifying Lender, BSCMI (whether or not it is the Lender), any Affiliate of BSCMI that has filed any registration statement relating to the Securitization or has acted as the sponsor or depositor in connection with the
Securitization, any Affiliate of BSCMI that acts as an underwriter, placement agent or initial purchaser of Securities issued in the Securitization, any other co-underwriters, co-placement agents or co-initial purchasers of Securities issued in the
Securitization, and each of their respective officers, directors, partners, employees, representatives, agents and Affiliates and each Person or entity who controls any such Person within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act (collectively, the “Indemnified Persons”), for any losses, claims, damages, liabilities, costs or expenses (including without limitation legal fees and expenses for enforcement of these obligations (collectively,
the “Liabilities”) to which any such Indemnified Person may become subject insofar as the Liabilities arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Covered
Disclosure Information or arise out of or are based upon the omission or alleged omission to state in the Covered Disclosure Information a material fact required to be stated therein or necessary in order to make the statements in the Covered
Disclosure Information, in light of the circumstances under which they were made, not misleading and (C) agreeing to reimburse each Indemnified Person for any legal or other expenses incurred by such Indemnified Person, as they are incurred, in
connection with investigating or defending the Liabilities. This indemnity agreement will be in addition to any liability which Borrower may otherwise have. Moreover, the indemnification and reimbursement obligations provided for in clauses (B) and
(C) above shall be effective, valid and binding obligations of the Indemnifying Persons whether or not an indemnification agreement described in clause (A) above is provided. 
  

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 (c) In connection with filings under the Exchange Act, the Indemnifying Persons jointly and severally
agree to (i) indemnify the Indemnified Persons for Liabilities to which any such Indemnified Person may become subject insofar as the Liabilities arise out of or are based upon any untrue statement or alleged untrue statement of any material fact in
the Covered Disclosure Information, or the omission or alleged omission to state in the Covered Disclosure Information a material fact required to be stated therein or necessary in order to make the statements in the Covered Disclosure Information,
in light of the circumstances under which they were made, not misleading, and (ii) reimburse each Indemnified Person for any legal or other expenses incurred by such Indemnified Persons, as they are incurred, in connection with defending or
investigating the Liabilities. 
  
 (d) Promptly after receipt by
an Indemnified Person of notice of any claim or the commencement of any action, the Indemnified Person shall, if a claim in respect thereof is to be made against any Indemnifying Person, notify such Indemnifying Person in writing of the claim or the
commencement of that action; provided, however, that the failure to notify such Indemnifying Person shall not relieve it from any liability which it may have under the indemnification provisions of this Section 9.2 except to the
extent that it has been materially prejudiced by such failure and, provided further that the failure to notify such Indemnifying Person shall not relieve it from any liability which it may have to an Indemnified Person otherwise than under the
provisions of this Section 9.2. If any such claim or action shall be brought against an Indemnified Person, and it shall notify any Indemnifying Person thereof, such Indemnifying Person shall be entitled to participate therein and, to the
extent that it wishes, assume the defense thereof with counsel reasonably satisfactory to the Indemnified Person. After notice from any Indemnifying Person to the Indemnified Person of its election to assume the defense of such claim or action, such
Indemnifying Person shall not be liable to the Indemnified Person for any legal or other expenses subsequently incurred by the Indemnified Person in connection with the defense thereof except as provided in the following sentence; provided,
however, if the defendants in any such action include both an Indemnifying Person, on the one hand, and one or more Indemnified Persons on the other hand, and an Indemnified Person shall have reasonably concluded that there are any legal
defenses available to it and/or other Indemnified Persons that are different or in addition to those available to the Indemnifying Person, the Indemnified Person or Persons shall have the right to select separate counsel to assert such legal
defenses and to otherwise participate in the defense of such action on behalf of such Indemnified Person or Persons. The Indemnified Person shall instruct its counsel to maintain reasonably detailed billing records for fees and disbursements for
which such Indemnified Person is seeking reimbursement hereunder and shall submit copies of such detailed billing records to substantiate that such counsel’s fees and disbursements are solely related to the defense of a claim for which the
Indemnifying Person is required hereunder to indemnify such Indemnified Person. No Indemnifying Person shall be liable for the expenses of more than one (1) such separate counsel unless such Indemnified Person shall have reasonably concluded that
there may be legal defenses available to it that are different from or additional to those available to another Indemnified Person. 
  
 (e) Without the prior written consent of BSCMI (which consent shall not be unreasonably withheld or delayed), no Indemnifying Person shall settle or
compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not any 

  

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Indemnified Person is an actual or potential party to such claim, action, suit or proceeding) unless the Indemnifying Person shall have given BSCMI
reasonable prior written notice thereof and shall have obtained an unconditional release of each Indemnified Person hereunder from all liability arising out of such claim, action, suit or proceedings. As long as an Indemnifying Person has complied
with its obligations to defend and indemnify hereunder, such Indemnifying Person shall not be liable for any settlement made by any Indemnified Person without the consent of such Indemnifying Person (which consent shall not be unreasonably withheld
or delayed). 
  
 (f) The Indemnifying Persons agree that if any
indemnification or reimbursement sought pursuant to this Section 9.2 is finally judicially determined to be unavailable for any reason or is insufficient to hold any Indemnified Person harmless (with respect only to the Liabilities that are
the subject of this Section 9.2), then the Indemnifying Persons, on the one hand, and such Indemnified Person, on the other hand, shall contribute to the Liabilities for which such indemnification or reimbursement is held unavailable or is
insufficient: (i) in such proportion as is appropriate to reflect the relative benefits to the Indemnifying Persons, on the one hand, and such Indemnified Person, on the other hand, from the transactions to which such indemnification or
reimbursement relates; or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (ii) but also the relative faults
of the Indemnifying Persons, on the one hand, and all Indemnified Persons, on the other hand, as well as any other equitable considerations. Notwithstanding the provisions of this Section 9.2, (A) no party found liable for a fraudulent
misrepresentation shall be entitled to contribution from any other party who is not also found liable for such fraudulent misrepresentation, and (B) the Indemnifying Persons agree that in no event shall the amount to be contributed by the
Indemnified Persons collectively pursuant to this paragraph exceed the amount of the fees actually received by the Indemnified Persons in connection with the closing of the Loan. 
  
 (g) The Indemnifying Persons agree that the indemnification, contribution and reimbursement obligations set forth in this
Section 9.2 shall apply whether or not any Indemnified Person is a formal party to any lawsuits, claims or other proceedings. The Indemnifying Persons further agree that the Indemnified Persons are intended third party beneficiaries under
this Section 9.2. 
  
 (h) The liabilities and obligations
of the Indemnified Persons and the Indemnifying Persons under this Section 9.2 shall survive the termination of this Agreement and the satisfaction and discharge of the Debt. 
  
 (i) Notwithstanding anything to the contrary contained herein, Borrower shall have no obligation to act as depositor with
respect to the Loan or an issuer or registrant with respect to the Securities issued in any Securitization. 
  
 Section 9.3 Exculpation. Subject to the qualifications below, Lender shall not enforce the liability and obligation of Borrower to
perform and observe the obligations contained in the Note, this Agreement, the Mortgages or the other Loan Documents by any action or proceeding wherein a money judgment shall be sought against Borrower, except that Lender may bring a foreclosure
action, an action for specific performance or any other appropriate action or 

  

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proceeding to enable Lender to enforce and realize upon its interest under the Note, this Agreement, the Mortgages and the other Loan Documents, or in the
Collateral, the Properties, the Rents, or any other collateral given to Lender pursuant to the Loan Documents; provided, however, that, except as specifically provided herein, any judgment in any such action or proceeding shall be
enforceable against Borrower only to the extent of Borrower’s interest in the Collateral, the Properties, in the Rents and in any other collateral given to Lender, and Lender, by accepting the Note, this Agreement, the Mortgages and the other
Loan Documents, agrees that it shall not sue for, seek or demand any deficiency judgment against Borrower in any such action or proceeding under or by reason of or under or in connection with the Note, this Agreement, the Mortgages or the other Loan
Documents. The provisions of this Section shall not, however, (a) constitute a waiver, release or impairment of any obligation evidenced or secured by any of the Loan Documents; (b) impair the right of Lender to name Borrower as a party defendant in
any action or suit for foreclosure and sale under any of the Mortgages; (c) affect the validity or enforceability of or any guaranty made in connection with the Loan or any of the rights and remedies of Lender thereunder; (d) impair the right of
Lender to obtain the appointment of a receiver; (e) impair the enforcement of any of the Assignments of Leases; (f) constitute a prohibition against Lender to seek a deficiency judgment against Borrower in order to fully realize the security granted
by each of the Pledge Agreements and the Mortgages or to commence any other appropriate action or proceeding in order for Lender to exercise its remedies against all of the Properties and the Collateral; or (g) constitute a waiver of the right of
Lender to enforce the liability and obligation of Borrower, by money judgment or otherwise, to the extent of any loss, damage, cost, expense, liability, claim or other obligation incurred by Lender (including attorneys’ fees and costs
reasonably incurred) arising out of or in connection with the following: 
  
 (i) fraud or intentional misrepresentation by Borrower, Principal, Operating Lessee, Limited Guarantor or Guarantor in connection with the Loan; 
  
 (ii) the willful misconduct of Borrower or Operating Lessee; 
  
 (iii) the breach of any representation, warranty, covenant
or indemnification provision in the Environmental Indemnity Agreement or in the Mortgages concerning environmental laws, hazardous substances and asbestos and any indemnification of Lender with respect thereto in either document; 
  
 (iv) the misappropriation or conversion in violation of the
Loan Documents by Borrower or Operating Lessee of (A) any Insurance Proceeds paid by reason of any loss, damage or destruction to the Properties, (B) any Awards received in connection with a Condemnation of all or a portion of the Properties, or (C)
any Rents while any Event of Default is continuing; and 
  
 (v) failure to obtain and/or maintain the Interest Rate Cap Agreement or Replacement Interest Rate Cap Agreement, as applicable, as required pursuant to Section 2.2.7 hereof. 
  
 Notwithstanding anything to the contrary in this Agreement, the Note or any
of the Loan Documents, (A) Lender shall not be deemed to have waived any right which Lender 

  

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may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code to file a claim for the full amount of the Debt secured by the
Mortgages or to require that all collateral shall continue to secure all of the Debt owing to Lender in accordance with the Loan Documents, and (B) the Debt shall be fully recourse to Borrower (i) in the event of: (a) Borrower, Operating Lessee or
Principal filing a voluntary petition under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (b) Borrower, Operating Lessee or Principal or any affiliate of Borrower, Operating Lessee or Principal solicits or causes to
be solicited petitioning creditors for any involuntary petition against Borrower, Operating Lessee or Principal from any Person; (c) Borrower, Operating Lessee or Principal filing an answer consenting to or otherwise acquiescing in or joining in any
involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited petitioning creditors for any involuntary petition from any
Person; (d) Borrower, Operating Lessee or Principal consenting to or acquiescing in or joining in an application for the appointment of a custodian, receiver, trustee, or examiner for Borrower, Operating Lessee or Principal or any portion of any
Individual Property; (e) Borrower, Operating Lessee or Principal making an assignment for the benefit of creditors, or admitting, in writing or in any legal proceeding, its insolvency or inability to pay its debts as they become due; (ii) if
Borrower, Operating Lessee or Principal fails to obtain Lender’s prior written consent to any Indebtedness or voluntary Lien encumbering any of the Properties or the Collateral; or (iii) if Borrower, Operating Lessee or Principal fails to
obtain Lender’s prior written consent to any Transfer as required by this Agreement or the Mortgages. 
  
 Section 9.4 Matters Concerning Manager. (a) If (i) the Debt has been accelerated pursuant to Section 8.1(b) hereof, (ii) any
Manager shall become bankrupt or insolvent, or (iii) a default by the related Manager occurs under any Management Agreement and, if such Manager is not an Affiliated Manager, the related Management Agreement provides for the termination of Manager
thereunder upon such default without the payment of any termination fee, then Borrower shall, at the request of Lender (A) terminate such Management Agreement and replace such Manager with a Qualified Manager pursuant to a Replacement Management
Agreement, and (B) if such Manager is an Affiliated Manager, terminate any and all of the Management Agreements to which such Affiliated Manager is a party and replace such Affiliated Manager under each related Management Agreement with a Qualified
Manager pursuant to a Replacement Management Agreement. 
  
 (b) If
any Manager shall become bankrupt or insolvent (a “Manager Excess Cash Sweep Event”), Borrower shall deposit all Excess Cash Flow in the Cash Management Account to be held by Lender until such Manager is replaced pursuant to
Section 9.4(a) hereof. No Event of Default shall occur by reason of this Section 9.4(b) so long as Borrower deposits into the Cash Management Account the additional amounts required by this Section 9.4(b). All such deposit
amounts shall be treated as a “Reserve Fund” for purposes of Section 7.7 hereof. All additional amounts deposited under this Section 9.4(b) shall be additional security for the repayment of the Debt and may be
withdrawn by Lender upon the occurrence of an Event of Default and applied by Lender in such order and priority as Lender may determine. 
  
 Section 9.5 Servicer. At the option of Lender, the Loan may be serviced by a servicer/trustee (any such servicer/trustee, together
with its agents, nominees or designees, are collectively referred to as “Servicer”) selected by Lender and Lender may delegate all or any 

  

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portion of its responsibilities under this Agreement and the other Loan Documents to Servicer pursuant to a servicing agreement (the “Servicing
Agreement”) between Lender and Servicer. Lender shall be responsible for all set-up fees and other initial costs relating to or arising under the Servicing Agreement; including the payment of the monthly servicing fee due to Servicer
thereunder. 
  
 Section 9.6 Matters Concerning
Franchisor. If (a) the Debt has been accelerated pursuant to Section 8.1(b) hereof, (b) any Franchisor shall become bankrupt or insolvent, or (c) a default by the related Franchisor occurs under any Franchise Agreement, which
Franchise Agreement provides for the termination of Franchisor thereunder upon such default without the payment of any termination fee, Borrower shall, at the request of Lender, terminate such Franchise Agreement and replace the related Franchisor
with a Qualified Franchisor pursuant to a Replacement Franchise Agreement. 
  

	 	X.	MISCELLANEOUS 

  
 Section 10.1 Survival. This Agreement and all covenants, agreements, representations and warranties made herein and in the
certificates delivered pursuant hereto shall survive the making by Lender of the Loan and the execution and delivery to Lender of the Note, and shall continue in full force and effect so long as all or any of the Debt is outstanding and unpaid
unless a longer period is expressly set forth herein or in the other Loan Documents. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the legal representatives, successors and assigns of
such party. All covenants, promises and agreements in this Agreement, by or on behalf of Borrower, shall inure to the benefit of the legal representatives, successors and assigns of Lender. 
  
 Section 10.2 Lender’s Discretion. Whenever pursuant
to this Agreement, Lender exercises any right given to it to approve or disapprove, or any arrangement or term is to be satisfactory to Lender, the decision of Lender to approve or disapprove or to decide whether arrangements or terms are
satisfactory or not satisfactory shall (except as is otherwise specifically herein provided) be in the sole discretion of Lender and shall be final and conclusive. 
  
 Section 10.3 Governing Law. 
  
 (a) THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED BY BORROWER IN THE
STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND
IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD 

  

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TO PRINCIPLES OF CONFLICTS OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION,
PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE APPLICABLE INDIVIDUAL PROPERTY OR THE
COLLATERAL IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS
ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS,
AND THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 
  
 (b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS 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 HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN
ANY SUIT, ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT: 
  
 CT CORPORATION SYSTEM 
 111 EIGHTH AVENUE 
 NEW YORK, NEW YORK 10011 
  
 AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY
FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT
EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME
TO TIME DESIGNATE A SUBSTITUTE 

  

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AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF
PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR. 
  
 Section 10.4 Modification, Waiver in Writing. No modification, amendment, extension, discharge,
termination or waiver of any provision of this Agreement, or of the Note, or of any other Loan Document, nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in a writing signed by the party
against whom enforcement is sought, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or demand on Borrower, shall
entitle Borrower to any other or future notice or demand in the same, similar or other circumstances. 
  
 Section 10.5 Delay Not a Waiver. Neither any failure nor any delay on the part of Lender in insisting upon strict performance of any
term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under the Note or under any other Loan Document, or any other instrument given as security therefor, shall operate as or constitute a waiver
thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by way of limitation, by accepting payment after the due date of any
amount payable under this Agreement, the Note or any other Loan Document, Lender shall not be deemed to have waived any right either to require prompt payment when due of all other amounts due under this Agreement, the Note or the other Loan
Documents, or to declare a default for failure to effect prompt payment of any such other amount. 
  
 Section 10.6 Notices. All notices, consents, approvals and requests required or permitted hereunder or under any other Loan Document
shall be given in writing and shall be effective for all purposes if hand delivered or sent by (a) certified or registered United States mail, postage prepaid, return receipt requested or (b) expedited prepaid delivery service, either commercial or
United States Postal Service, with proof of attempted delivery, and by telecopier (with answer back acknowledged), addressed as follows (or at such other address and Person as shall be designated from time to time by any party hereto, as the case
may be, in a written notice to the other parties hereto in the manner provided for in this Section): 
  

			
	If to Lender:	  	Bear Stearns Commercial Mortgage, Inc.
	 	  	383 Madison Avenue
	 	  	New York, New York 10179
	 	  	Attention: J. Christopher Hoeffel
	 	  	Facsimile No.: (212) 272-7047

  

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	with a copy to:	  	Cadwalader, Wickersham & Taft
	 	  	100 Maiden Lane
	 	  	New York, New York 10038
	 	  	Attention: William P. McInerney, Esq.
	 	  	Facsimile No.: (212) 504-6666
		
	If to Borrower:	  	c/o Westbrook Partners, L.L.C.
	 	  	13155 Noel Road
	 	  	Suite 2400
	 	  	Dallas, Texas 75240
	 	  	Attention: Pat Fox
	 	  	Facsimile No.: (972) 934-8333
		
	With a copy to:	  	Cravath, Swaine & Moore
	 	  	825 Eighth Avenue
	 	  	New York, New York 10019
	 	  	Attention: Kent Richey, Esq.
	 	  	Facsimile No.: (212) 474-3700

  
 A notice shall be deemed to have been
given: in the case of hand delivery, at the time of delivery; in the case of registered or certified mail, when delivered or the first attempted delivery on a Business Day; or in the case of expedited prepaid delivery and telecopy, upon the first
attempted delivery on a Business Day; or in the case of telecopy, upon sender’s receipt of a machine-generated confirmation of successful transmission after advice by telephone to recipient that a telecopy notice is forthcoming. 
  
 Section 10.7 Trial by Jury. 
  
 BORROWER HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE
OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE 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 BORROWER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO FILE A
COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER. 
  
 Section 10.8 Headings. The Article and/or Section headings and the Table of Contents in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
  
 Section 10.9 Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, 

  

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such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining
provisions of this Agreement. 
  
 Section 10.10
Preferences. Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the obligations of Borrower hereunder. To the extent Borrower makes a payment or
payments to Lender, which payment or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state
or federal law, common law or equitable cause, then, to the extent of such payment or proceeds received, the obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or
proceeds had not been received by Lender. 
  
 Section 10.11
Waiver of Notice. Borrower shall not be entitled to any notices of any nature whatsoever from Lender except with respect to matters for which this Agreement or the other Loan Documents specifically and expressly provide for the
giving of notice by Lender to Borrower and except with respect to matters for which Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. Borrower hereby expressly waives the right to receive any notice
from Lender with respect to any matter for which this Agreement or the other Loan Documents do not specifically and expressly provide for the giving of notice by Lender to Borrower. 
  
 Section 10.12 Remedies of Borrower. In the event that a claim or adjudication is made that Lender or
its agents have acted unreasonably or unreasonably delayed acting in any case where by law or under this Agreement or the other Loan Documents, Lender or such agent, as the case may be, has an obligation to act reasonably or promptly, Borrower
agrees that neither Lender nor its agents shall be liable for any monetary damages, and Borrower’s sole remedies shall be limited to commencing an action seeking injunctive relief or declaratory judgment. The parties hereto agree that any
action or proceeding to determine whether Lender has acted reasonably shall be determined by an action seeking declaratory judgment. 
  
 Section 10.13 Expenses; Indemnity. (a) Borrower covenants and agrees to pay or, if Borrower fails to pay, to reimburse, Lender upon
receipt of written notice from Lender for all reasonable costs and expenses (including reasonable attorneys’ fees and disbursements) incurred by Lender in connection with (i) the preparation, negotiation, execution and delivery of this
Agreement and the other Loan Documents and the consummation of the transactions contemplated hereby and thereby and all the costs of furnishing all opinions by counsel for Borrower (including without limitation any opinions requested by Lender as to
any legal matters arising under this Agreement or the other Loan Documents with respect to the Properties); (ii) Borrower’s ongoing performance of and compliance with Borrower’s respective agreements and covenants contained in this
Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date, including, without limitation, confirming compliance with environmental and insurance requirements; (iii) Lender’s ongoing performance
and compliance with all agreements and conditions contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date; (iv) the negotiation, preparation, execution, delivery and administration
of any consents, amendments, waivers or other modifications to this Agreement and the other Loan Documents and any other 

  

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documents or matters requested by Lender; (v) securing Borrower’s compliance with any requests made pursuant to the provisions of this Agreement; (vi)
the filing and recording fees and expenses, title insurance and reasonable fees and expenses of counsel for providing to Lender all required legal opinions, and other similar expenses incurred in creating and perfecting the Liens in favor of Lender
pursuant to this Agreement and the other Loan Documents; (vii) enforcing or preserving any rights, in response to third party claims or the prosecuting or defending of any action or proceeding or other litigation, in each case against, under or
affecting Borrower, this Agreement, the other Loan Documents, the Collateral, the Properties, or any other security given for the Loan; and (viii) enforcing any obligations of or collecting any payments due from Borrower under this Agreement, the
other Loan Documents or with respect to the Properties or the Collateral (including any fees incurred by Servicer in connection with the transfer of the Loan to a special servicer prior to a Default or Event of Default) or in connection with any
refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out” or of any insolvency or bankruptcy proceedings; provided, however, that Borrower shall not be liable for the
payment of any such costs and expenses to the extent the same arise by reason of the gross negligence, illegal acts, fraud or willful misconduct of Lender. Any cost and expenses due and payable to Lender may be paid from any amounts in the Lockbox
Account or Cash Management Account, as applicable. 
  
 (b)
Borrower shall indemnify, defend and hold harmless Lender from and against any and all other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever
(including, without limitation, the reasonable fees and disbursements of counsel for Lender in connection with any investigative, administrative or judicial proceeding commenced or threatened, whether or not Lender shall be designated a party
thereto), that may be imposed on, incurred by, or asserted against Lender in any manner relating to or arising out of (i) any breach by Borrower of its obligations under, or any material misrepresentation by Borrower contained in, this Agreement or
the other Loan Documents, or (ii) the use or intended use of the proceeds of the Loan (collectively, the “Indemnified Liabilities”); provided, however, that Borrower shall not have any obligation to Lender hereunder to
the extent that such Indemnified Liabilities arise from the gross negligence, illegal acts, fraud or willful misconduct of Lender. It is understood and agreed that, to the extent not precluded by a conflict of interest, Lender shall endeavor to work
cooperatively with Borrower with a view toward minimizing the legal and other expenses associated with any defense and any potential settlement or judgment. To the extent reasonably practicable and not disadvantageous to Lender, it is anticipated
that a single counsel selected by Borrower may be used. Settlement of any claim or litigation involving any material indemnified amount will require the approval of the Borrower (not to be unreasonably withheld or delayed). To the extent that the
undertaking to indemnify, defend and hold harmless set forth in the preceding sentence may be unenforceable because it violates any law or public policy, Borrower shall pay the maximum portion that it is permitted to pay and satisfy under applicable
law to the payment and satisfaction of all Indemnified Liabilities incurred by Lender. 
  
 (c) Borrower covenants and agrees to pay for or, if Borrower fails to pay, to reimburse Lender for, any fees and expenses reasonably incurred by any Rating Agency in connection with any Rating Agency review of the
Loan, the Loan Documents or any transaction contemplated thereby or any consent, approval, waiver or confirmation obtained from such Rating Agency pursuant to the terms and conditions of this Agreement or any other Loan 

  

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Document and Lender shall be entitled to require payment of such fees and expenses as a condition precedent to the obtaining of any such consent, approval,
waiver or confirmation. 
  
 Section 10.14 Schedules
Incorporated. The Schedules annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof. 
  
 Section 10.15 Offsets, Counterclaims and Defenses. Any assignee of Lender’s interest in and to
this Agreement, the Note and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such documents which Borrower may otherwise have against any assignor of such documents, and no
such unrelated counterclaim or defense shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon such documents and any such right to interpose or assert any such unrelated offset, counterclaim or
defense in any such action or proceeding is hereby expressly waived by Borrower. 
  
 Section 10.16 No Joint Venture or Partnership; No Third Party Beneficiaries. (a) Borrower and Lender intend that the relationships created hereunder and under the other Loan Documents be solely
that of borrower and lender. Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Properties other than
that of mortgagee, beneficiary or lender. 
  
 (b) This Agreement
and the other Loan Documents are solely for the benefit of Lender and Borrower and nothing contained in this Agreement or the other Loan Documents shall be deemed to confer upon anyone other than Lender and Borrower any right to insist upon or to
enforce the performance or observance of any of the obligations contained herein or therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit of Lender and no other Person
shall have standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make the Loan in the absence of strict compliance with any or all thereof and no other Person shall
under any circumstances be deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or desirable to do so. 
  
 Section 10.17 Publicity. All news releases, publicity or
advertising by Borrower or its Affiliates through any media intended to reach the general public which refers to the Loan Documents or the financing evidenced by the Loan Documents, to Lender, BSCMI, or any of their Affiliates shall be subject to
the prior written approval of Lender. 
  
 Section 10.18
Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets. (a) Borrower acknowledges that Lender has made the Loan to Borrower upon the security of its collective interest in the Collateral and the Properties and in
reliance upon the aggregate of the Collateral and the Properties taken together being of greater value as collateral security than the sum of each Individual Property taken separately. Borrower agrees that the Mortgages are and will be
cross-collateralized and cross-defaulted with each other so that (i) an Event of Default under any of the Mortgages shall constitute an Event of Default under each of 

  

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the other Mortgages which secure the Note; (ii) an Event of Default under the Note or this Agreement shall constitute an Event of Default under each
Mortgage; (iii) each Mortgage shall constitute security for the Note as if a single blanket lien were placed on all of the Properties as security for the Note; (iv) each Pledge Agreement shall constitute security for the Note as if a single blanket
lien were placed on all of the Collateral as security for the Note; and (v) such cross-collateralization shall in no event be deemed to constitute a fraudulent conveyance. 
  
 (b) To the fullest extent permitted by law, Borrower, for itself and its successors and assigns, waives all rights to a
marshalling of the assets of Borrower, Borrower’s partners and others with interests in Borrower, Operating Lessee and of the Collateral and the Properties, or to a sale in inverse order of alienation in the event of foreclosure of all or any
of the Mortgages or the Collateral, and agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates of decedents, or any other
matters whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents to a sale of the Collateral and the Properties for the collection of the Debt without any prior or different resort for collection or of the right of Lender
to the payment of the Debt out of the net proceeds of the Collateral and the Properties in preference to every other claimant whatsoever. In addition, Borrower, for itself and its successors and assigns, waives in the event of foreclosure of any or
all of the Mortgages or the Collateral, any equitable right otherwise available to Borrower which would require the separate sale of the Properties the Collateral and or require Lender to exhaust its remedies against any Individual Property or any
combination of the Properties before proceeding against any other Individual Property or combination of Properties; and further in the event of such foreclosure Borrower does hereby expressly consents to and authorizes, at the option of Lender, the
foreclosure and sale either separately or together of any combination of the Properties. Furthermore, Borrower, for itself and its successors and assigns, waives in the event of foreclosure upon all of the Collateral, any equitable right otherwise
available to Borrower which would require the separate sale of any part of the Collateral or require Lender to exhaust its remedies against any part of the Collateral or any combination of the Collateral before proceeding against any other part of
the Collateral or combination of the Collateral; and further in the event of such foreclosure Borrower hereby expressly consents to and authorizes, at the option of Lender, the foreclosure and sale either separately or together of any combination of
the Collateral. 
  
 Section 10.19 Waiver of
Counterclaim. Borrower hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Lender or its agents. 
  
 Section 10.20 Conflict; Construction of Documents;
Reliance. In the event of any conflict between the provisions of this Agreement and any of the other Loan Documents, the provisions of this Agreement shall control. The parties hereto acknowledge that they were represented by competent
counsel in connection with the negotiation, drafting and execution of the Loan Documents and that such Loan Documents shall not be subject to the principle of construing their meaning against the party which drafted same. Borrower acknowledges that,
with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering into the Loan without relying in any manner on any statements, representations or recommendations of Lender or any parent, subsidiary or Affiliate of
Lender. Lender shall not be 

  

 -127- 

 
subject to any limitation whatsoever in the exercise of any rights or remedies available to it under any of the Loan Documents or any other agreements or
instruments which govern the Loan by virtue of the ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest any of them may acquire in Borrower, and Borrower hereby irrevocably waives the right to raise any defense or
take any action on the basis of the foregoing with respect to Lender’s exercise of any such rights or remedies. Borrower acknowledges that Lender engages in the business of real estate financings and other real estate transactions and
investments which may be viewed as adverse to or competitive with the business of Borrower or its Affiliates. 
  
 Section 10.21 Brokers and Financial Advisors. Borrower hereby represents that it has dealt with no financial advisors, brokers,
underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement. Borrower hereby agrees to indemnify, defend and hold Lender harmless from and against any and all claims, liabilities, costs and
expenses of any kind (including Lender’s attorneys’ fees and expenses) in any way relating to or arising from a claim by any Person that such Person acted on behalf of Borrower or Lender in connection with the transactions contemplated
herein. The provisions of this Section 10.21 shall survive the expiration and termination of this Agreement and the payment of the Debt. 
  
 Section 10.22 Prior Agreements. This Agreement and the other Loan Documents contain the entire agreement of the parties hereto and
thereto in respect of the transactions contemplated hereby and thereby, and all prior agreements among or between such parties, whether oral or written, including, without limitation, the Commitment Letter dated September 22, 2002 between Borrower
and Lender, are superseded by the terms of this Agreement and the other Loan Documents. 
  
 Section 10.23 Joint and Several Liability. The parties hereto acknowledge that the defined term “Borrower” (as well as the defined term defining each other Collective Group) has been
defined to collectively include each Individual Borrower (and in the case of each Collective Group, defined to collectively include each member of the same). It is the intent of the parties hereto in determining whether (a) a breach of a
representation or a covenant has occurred, (b) there has occurred a Default or Event of Default, or (c) an event has occurred which would create recourse obligations under Section 9.3 of this Agreement, that any such breach, occurrence or
event with respect to any Individual Borrower (or with respect to any single member of a Collective Group) shall be deemed to be such a breach, occurrence or event with respect to all Individual Borrowers (and in the case of each Collective Group,
each member of the same) and that all Individual Borrowers need not have been involved with such breach, occurrence or event in order for the same to be deemed such a breach, occurrence or event with respect to every Individual Borrower (and
likewise that each member of a Collective Group need not have been involved with such breach, occurrence or event in order for the same to be deemed such a breach, occurrence or event with respect to such Collective Group). The term
“Collective Group” as used in this Agreement shall refer to each of the groups of entities represented in this Agreement by the following defined terms: Mezzanine Borrower, Junior Mezzanine Borrower, Limited Guarantor, Guarantor and
Operating Lessee. The obligations and liabilities of each Individual Borrower shall be joint and several. Nothing in this Section 10.23 shall be deemed to create any liability (joint, several or otherwise) on the part of (i) any Individual
Borrower in respect of any amounts outstanding under the Mezzanine Loan or the Junior Mezzanine Loan, 

  

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(ii) any Junior Mezzanine Borrower in respect of any amounts outstanding under the Mezzanine Loan or the Loan or (iii) any Mezzanine Borrower in respect of
any amounts outstanding under the Loan or the Junior Mezzanine Loan. 
  
 Section 10.24 No Release or Novation. This Agreement constitutes an amendment and restatement of the Original Loan Agreement and is not intended to and shall not extinguish any of the indebtedness or obligations of
Borrower under the Note, the Original Loan Agreement or any other Loan Document in such a manner as would constitute a release or novation of the original indebtedness or obligations of Borrower under the Note, the Original Loan Agreement or any
other Loan Document, nor shall this Agreement affect or impair the priority of any liens created thereby or in connection therewith, it being the intention of the parties hereto to preserve all liens and security interests securing payment of the
Note and the Debt, which liens and security interests are acknowledged by Borrower to be valid and subsisting against the Properties and any other security or collateral for the Debt. 
  
 Section 10.25 Effective Date. This Agreement shall be effective as of December 5, 2002. All references
to the “Closing Date” shall refer to December 5, 2002. 
  
 Section 10.26 Confirmation of Guarantor and Limited Guarantor. (a) Guarantor hereby agrees and confirms that the amendment and restatement of the Original Loan Agreement and the modification of the other Loan Documents
pursuant to this Agreement and/or in connection with the execution and delivery of this Agreement shall in no manner affect or modify its obligations as Guarantor hereunder or as Guarantor pursuant to the terms and provisions of the Guaranty.

  
 (b) Limited Guarantor hereby agrees and confirms that the
amendment and restatement of the Original Loan Agreement and the modification of the other Loan Documents pursuant to this Agreement and/or in connection with the execution and delivery of this Agreement shall in no manner affect or modify its
obligations as Limited Guarantor hereunder or as Limited Guarantor pursuant to the terms and provisions of the Limited Guaranty. 
  
 [NO FURTHER TEXT ON THIS PAGE] 
  

 -129- 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
duly authorized representatives, all as of the day and year first above written. 
  

			
	BORROWER:
	
	 WHP HOTEL OWNER-1, L.P., a Delaware limited partnership

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	 WHP HOTEL OWNER-2A, L.L.C., a Delaware limited liability company

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	 WHP HOTEL OWNER-2B, L.L.C., a Delaware limited liability company

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	LENDER:
	
	 BEAR STEARNS COMMERCIAL MORTGAGE, INC., a New York corporation

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 For the purpose of agreeing to be bound by Section 10.26 hereof: 
  

			
	GUARANTOR:
	
	 WESTBROOK HOTEL PARTNERS IV, L.L.C., a Delaware limited liability company

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	 WESTBROOK HOTEL CO-INVESTMENT PARTNERS IV, L.L.C., a Delaware limited liability company

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

							
	LIMITED GUARANTOR:
	
	 WESTBROOK REAL ESTATE
 CO-INVESTMENT PARTNERSHIP IV, L.P., a Delaware limited partnership

		
	 By:
	 	 Westbrook Real Estate Partners Management IV, L.L.C., its general partner

			
	 	 	 By:
	 	 Westbrook Real Estate Partners, L.L.C., its managing member

				
	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 Title:

  
 [Signatures
continue on following page] 
  

							
	WESTBROOK REAL ESTATE FUND IV, L.P., a Delaware limited partnership
		
	 By:
	 	 Westbrook Real Estate Partners Management IV, L.L.C., its general partner

			
	 	 	 By:
	 	 Westbrook Real Estate Partners, L.L.C., its managing member

				
	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 Title:

  

 SCHEDULE I 
  
 (Properties Allocated Loan Amounts) 
  
 [see attached] 
  

 SCH. I-1 

 SCHEDULE II 
  
 (Lockbox Properties) 
  

	1.	Hilton Del Mar 

  

	2.	Hilton Huntington 

  

	3.	Radisson Englewood 

  

	4.	Radisson Ft. Magruder 

  

	5.	Doubletree Minneapolis 

  

	6.	Marriott Houston North @ Greenspoint 

  

	7.	Valley River Inn 

  

 SCH. II-1 

 SCHEDULE III 
  
 (Required Repairs – Deadlines For Completion) 
  
 [see attached] 
  

 SCH. III-1 

 SCHEDULE IV 
  
 (Organizational Chart of Borrower) 
  
 [see attached] 
  

 SCH. IV-1 

 SCHEDULE V 
  
 (Franchise Agreements) 
  
 Radisson Englewood 
  
 License Agreement and Addendum to License Agreement, dated and effective November 27, 2002, by and between Radisson Hotel International, Inc., a Delaware corporation, as
Franchisor, and WHP Hotel Lessee-1, Inc., a Delaware corporation, as Licensee, related to the Radisson Englewood Hotel located at 401 South Van Brunt St., Englewood, New Jersey 07631. 
  
 Radisson Fort Magruder 
  
 License Agreement and Addendum to License Agreement, dated and effective November 27, 2002, by and between Radisson Hotel International, Inc., a Delaware corporation, as
Franchisor, and WHP Hotel Lessee-1, Inc., a Delaware corporation, as Licensee, related to the Radisson Fort Magruder Hotel located at 6945 Pocahontas Trail, Williamsburg, Virginia 23185. 
  
 General Marriott Documents 
  
 Marriott Consent Agreement, made as of December 5, 2002, by and among Wyndham International, Inc., a Delaware corporation, Wyndham International Operating Partnership,
L.P., a Delaware limited partnership, Patriot American Hospitality, Inc., a Delaware corporation, Patriot American Hospitality Partnership, L.P., a Virginia limited partnership, IHC Realty Partnership, L.P., a Delaware limited partnership, IHC
Realty Corporation, a Delaware corporation, PAH GP, Inc., a Delaware corporation, Interstone/PAH Partners, L.P., a Delaware limited partnership, IHC/Houston Partnership, L.P., a Delaware limited partnership, Mar-Ty, LLC, a Delaware limited liability
company and wholly owned subsidiary of Wyndham, IHC/Conshohocken Partnership, L.P., a Delaware limited partnership, IHC II, LLC, a Delaware limited liability company, Marriott International, Inc., a Delaware corporation and Marriott Hotel Services,
Inc., a Delaware corporation, Westbrook Hotel Partners IV, L.L.C., a Delaware limited liability company and Westbrook Hotel Co-Investment Partners IV, L.L.C., a Delaware limited liability company (Westbrook Partners and Westbrook Co-Investment
Partners sometimes referred to as “Purchaser”), WHP Hotel Owner-1, L.P., a Delaware limited partnership, WHP Hotel Owner-2B, L.L.C., a Delaware limited liability company, WHP Hotel Lessee-1, Inc., a Delaware corporation, WHP Hotel
Lessee-2, Inc., a Delaware corporation and WHP Hotel Lessee-2A, Inc., a Delaware corporation. 
  
 Marriott Philadelphia West 
  
 Franchise Agreement made and entered into effective as of December 5, 2002, by and between Marriott International, Inc., a Delaware corporation, as Franchisor, and WHP Hotel Lessee-2, Inc., a Delaware corporation, as Franchisee, related to
the Marriott Philadelphia West Hotel located at Matson Ford at Front Street, 111 Crawford Ave, West Conshohocken, Pennsylvania 19428. 
  
 Guaranty, dated as of December 5, 2002, by WHP Ground Lessor, L.P., a Delaware limited partnership, WHP Hotel Owner-2A, L.L.C., a Delaware limited liability company and
WHP 

  

 SCH. V-1 

 
Hotel Owner-2B, L.L.C. in favor of and for the benefit of Marriott International, Inc., a Delaware corporation, as Franchisor, regarding a certain Franchise
Agreement dated as of December 5, 2002, by and between Franchisor and WHP Hotel Lessee-2, Inc., a Delaware corporation, as Franchisee. 
  
 Memorandum of Rights of First Refusal and Purchase Upon Termination, dated as of the 5th day of December, 2002, among Marriott International, a Delaware corporation, as Franchisor, WHP Hotel Lessee-2, Inc., a Delaware corporation, as Franchisee,
and WHP Ground Lessor L.P., a Delaware limited partnership, as Owner, related to the Marriott Philadelphia West Hotel located at Matson Ford at Front Street, 111 Crawford Ave, West Conshohocken, Pennsylvania 19428. 
  
 Owner Agreement made and entered into as of the 5th day of December, 2002, by and among Marriott International, Inc., a Delaware corporation, as Franchisor, WHP Hotel Lessee-2, Inc., a Delaware corporation, as
Franchisee, and WHP Hotel Owner-2B, L.L.C., a Delaware limited liability company and WHP Ground Lessor, L.P., a Delaware limited partnership, related to the Marriott Philadelphia West Hotel located at Matson Ford at Front Street, 111 Crawford Ave,
West Conshohocken, Pennsylvania 19428. 
  
 Guaranty, dated as of December 5, 2002,
by WHP Hotel Owner-2A, L.L.C., a Delaware limited liability company, WHP Hotel Owner-2B, L.L.C., a Delaware limited liability company, and WHP Ground Lessor, L.P., a Delaware limited partnership (jointly and severally, the “Guarantor”), in
favor of and for the benefit of Marriott Hotel Services, Inc., a Delaware corporation and Marriott International Inc., a Delaware corporation. 
  
 Owner Agreement, dated as of December 5, 2002, by and between WHP Ground Lessor, L.P., a Delaware limited partnership, as Ground Lessor, WHP Hotel Owner-2B, L.L.C., a
Delaware limited liability company, as Ground Lessee, WHP Hotel Lessee-2, Inc., a Delaware corporation, as Lessee, and Marriott Hotel Services, Inc., a Delaware corporation, as Manager. 
  
 Marriott Houston North 
  
 Franchise Agreement, made and entered into effective as of the December 5, 2002, by and between Marriott International, Inc., a Delaware corporation, as Franchisor, and
WHP Hotel Lessee-1, Inc., a Delaware corporation, as Franchisee, related to the Marriott Houston North Hotel located at 255 North Sam Houston Parkway, Houston, Texas 77060 (Houston/Greenspoint). 
  
 Memorandum of Rights of First Refusal and Purchase Upon Termination, dated as of the
5th day of December, 2002, among Marriott International, a Delaware corporation, as Franchisor, WHP Hotel Lessee-1,
Inc., a Delaware corporation, as Franchisee, and WHP Hotel Owner-1, L.P., a Delaware limited partnership, as owner, regarding real property located in Harris County, State of Texas. 
  
 Guaranty executed as of December 5, 2002 by WHP Hotel Owner-1, L.P., a Delaware limited partnership, in favor of and for the benefit of
Marriott International, Inc., a Delaware corporation, regarding the franchise agreement by and between WHP Hotel Lessee-1, Inc., a Delaware corporation, as Franchisee and Marriott International, Inc., as Franchisor. 
  

 SCH. V-2 

 Owner Agreement entered into as of December 5, 2002, by and among Marriott International, Inc., a Delaware corporation,
as Franchisor, WHP Hotel Lessee-1, Inc., a Delaware corporation, as Franchisee, and WHP Hotel Owner-1, L.P., a Delaware limited partnership, as Owner. 
  
 Acknowledgement made and entered into as of December 5, 2002, by WHP Hotel Owner-1, L.P., a Delaware limited partnership, as Greenspoint Fee Owner, WHP Hotel Lessee-1,
Inc., a Delaware corporation, as Greenspoint Operating Lessee, WHP Ground Lessor, L.P., a Delaware limited partnership, as Conshohocken Fee Owner, WHP Hotel Owner-2B, L.L.C., a Delaware limited liability company, as Conshohocken Ground Lessee and
WHP Hotel Lessee-2, Inc., a Delaware corporation, as Conshohocken Operating Lessee. 
  
 Hilton Del Mar 
  
 Franchise License Agreement and Rider
to Franchise License Agreement, dated December 5, 2002, by and between Hilton Inns, Inc., as Licensor, and WHP Hotel Lessee-1, Inc., as Licensee, related to the Hilton Del Mar Hotel located at 15575 Jimmy Durante Blvd., Del Mar, CA 92014.

  
 Guarantee of Franchise License Agreement, dated December 5, 2002, made by WHP
Hotel Owner-1, L.P., a Delaware limited partnership, as Guarantor, in connection with the Franchise Agreement by and between Hilton Inns, Inc., a Delaware corporation, as Licensor, and WHP Hotel Lessee-1, Inc., a Delaware corporation, as Licensee,
covering that certain Hilton Sand Diego/Del Mar located at 15575 Jimmy Durante Blvd., Del Mar, CA 92014. 
  
 Hilton Huntington 
  
 Franchise
License Agreement and Rider to Franchise License Agreement, dated December 5, 2002, by and between Hilton Inns, Inc. a Delaware corporation, as Licensor, and WHP Hotel Lessee-1, Inc., a Delaware corporation, as Licensee, related to the Hilton
Huntington Hotel located at 598 Broadhollow Road, Melville, NY 11747. 
  
 Guarantee of Franchise License Agreement, dated December 5, 2002, made by WHP Hotel Owner-1, L.P., a Delaware limited partnership, as Guarantor, in connection with the Franchise Agreement by and between Hilton Inns, Inc., a Delaware
corporation, as Licensor, and WHP Hotel Lessee-1, Inc., a Delaware corporation, as Licensee, covering that certain Hilton Huntington located at 598 Broadhollow Road, Melville, NY 11747. 
  
 Doubletree Guest Suites 
  
 Franchise License Agreement and Rider to Franchise License Agreement, dated December 5, 2002, by and between Hilton Inns, Inc., a Delaware corporation, as Licensor, and
WHP Hotel Lessee-1, Inc., a Delaware corporation, as Licensee, related to the Doubletree Guest Suites Hotel located at 1101 La Salle Avenue, Minneapolis, MN 55403. 
  
 Assignment and Assumption of Management Agreement, dated December 5, 2002, by and among PAH Leasing, LLC, a Delaware limited liability
company, as Assignor, WHP Hotel Lessee-1, Inc., a Delaware corporation, as Assignee, and DT Management, Inc., an Arizona corporation, as Manager. 
  

 SCH. V-3 

 Conversion of Management Agreement to Franchise, dated December 5, 2002, by and among PAH Leasing, LLC, a Delaware
limited liability company, as Assignor, WHP Hotel lessee-1, Inc., a Delaware corporation, as Assignee, and DT Management, Inc., an Arizona corporation, as Manager, regarding the Management of the Doubletree Guest Suites Minneapolis. 
  
 Guarantee of Franchise License Agreement, dated December 5, 2002, made by WHP Hotel Owner-1,
L.P., a Delaware limited partnership, as Guarantor, in connection with the Franchise Agreement by and between Doubletree Hotel Systems, Inc., a Delaware corporation, as Licensor, and WHP Hotel Lessee-1, Inc., a Delaware corporation, as Licensee,
covering that certain Doubletree Guest Suites Minneapolis located at 1101 LaSalle Avenue, Minneapolis, MN 55403. 
  
 WestCoast Valley River Inn 
  
 WestCoast Hotel Marketing, Inc. Joint Marketing Agreement, Valley River Inn, effective November 30, 1998, between Wyndham International Operating Partnership, L.P., as
Participant, and Westcoast Hotel Marketing, Inc., a Washington corporation (predecessor-in-interest to Westcoast Hotels, Inc.), regarding property located at 1000 Valley River Way, Eugene, Oregon. 
  
 Assignment, Assumption and Amendment of Agreements, dated as of December 4, 2002, by and
between Wyndham International Operating Partnership, L.P., a Delaware limited partnership, as assignor, WHP Hotel Lessee-1, Inc., a Delaware corporation, as assignee. 
  
 Guaranty of Management and Marketing Agreements, effective December 5, 2002, by WHP Hotel Owner-1, L.P., a Delaware limited partnership, as
Guarantor, to and for the benefit of WestCoast Hotels, Inc., a Washington corporation. 
  

 SCH. V-4 

 SCHEDULE VI 
  
 (Management Agreements) 
  
 Radisson Englewood 
  
 Property Management Agreement, dated as of December 5, 2002, by and between WHP Hotel Lessee-1, Inc., a Delaware corporation, as Lessee, and Sunstone Hotel Properties,
Inc., a Colorado corporation, as Manager, related to the Radisson Englewood Hotel located at 401 South Van Brunt Street, Englewood, New Jersey 07631. 
  
 Radisson Fort Magruder 
  
 Property Management Agreement, dated as of December 5, 2002, by and between WHP Lessee-1, Inc., a Delaware corporation, as Lessee, and Sunstone Hotel Properties, Inc., a
Colorado corporation, as Manager, related to the Radisson Fort Magruder Hotel located at 6945 Pocahontas Trail, Williamsburg, Virginia 23185. 
  
 Hilton Del Mar 
  
 Property Management Agreement, dated as of December 5, 2002, by and between WHP Lessee-1, Inc., a Delaware corporation, as Lessee, and Sunstone Hotel Properties, Inc., a Colorado corporation, as Manager, related to
the Hilton Del Mar Hotel located at 15575 Jimmy Durante Boulevard, Del Mar, California 92104. 
  
 Hilton Huntington 
  
 Property
Management Agreement, dated as of December 5, 2002, by and between WHP Lessee-1, Inc., a Delaware corporation, as Lessee, and Sunstone Hotel Properties, Inc., a Colorado corporation, as Manager, related to the Hilton Huntington Hotel located at 598
Broadhollow Road, Melville, New York 11747. 
  
 Doubletree Guest Suites

  
 Property Management Agreement, dated as of December 5, 2002, by and
between WHP Lessee-1, Inc. a Delaware corporation, as Lessee, and Sunstone Hotel Properties, Inc., a Colorado corporation, as Manager, related to the Doubletree Guest Suites Hotel located at 1101 La Salle Avenue, Minneapolis, Minnesota 55403.

  
 WestCoast Valley River Inn 
  
 Management Agreement, dated November 30, 1998, by and between WestCoast Hotels, Inc. and
Wyndham International Operating Partnership, L.P. related to the WestCoast Valley River Inn, located at 100 Valley River Way, Eugene, Oregon 97401. 
  
 Assignment, Assumption and Amendment of Agreements, dated as of December 4, 2002, by and between Wyndham International Operating Partnership, L.P., a Delaware limited
partnership, as assignor, WHP Hotel Lessee-1, Inc., a Delaware corporation, as assignee, and only as to the 

  

 SCH. VI-1 

 
amendments set forth in Sections 9 and 10, between assignee and WestCoast Hotels, Inc., a Washington Corporation, assigning, assuming and amending the
Management Agreement dated November 30, 1998 by and between WestCoast Hotels, Inc. and Wyndham International Operating Partnership, L.P. 
  
 Guaranty of Management and Marketing Agreements, effective December 5, 2002, by WHP Hotel Owner-1, L.P., a Delaware limited partnership, as Guarantor, to and for the
benefit of WestCoast Hotels, Inc., a Washington corporation. 
  
 Asset Management
Agreement, dated as of December 5, 2002, by and between WHP Hotel Lessee-1, Inc., a Delaware limited partnership and Sunstone Hotel Properties, Inc., a Colorado corporation. 
  
 Hyatt Newporter Hotel 
  
 Management Agreement, dated as of June 9, 1989, by and between Hyatt Corporation, as Manager and CLS Newporter, Ltd., as predecessor in interest to Patriot American
Hospitality Partnership, L.P., a Virginia limited partnership, and Wyndham International Operating Partnership, L.P., a Delaware limited partnership, related to the Hyatt Newporter Hotel located at 1107 Jamboree Road, Newport Beach, California
92660. 
  
 Assignment and Assumption of Agreements, dated as of December 5, 2002,
by and among Patriot American Hospitality Partnership, L.P., a Virginia limited partnership, and Wyndham International Operating Partnership, L.P., a Delaware limited partnership each as Assignors and WHP Hotel Lessee-1, Inc. a Delaware corporation,
as Assignee, assigning and assuming the Management Agreement, dated as of June 9, 1989, by and between Hyatt Corporation, as Manager and CLS Newporter, Ltd. as predecessor in interest to assignor. 
  
 Owner, Lessee and Manager Non-Disturbance and Attornment Agreement, dated as of December 5,
2002, among WHP Hotel Owner-1, L.P. a Delaware limited partnership, WHP Hotel Lessee-1, Inc., a Delaware corporation and Hyatt Corporation, a Delaware corporation. 
  
 Asset Management Agreement, dated as of December 5, 2002, by and between WHP Hotel Lessee-1, Inc., a Delaware limited partnership and
Sunstone Hotel Properties, Inc., a Colorado corporation. 
  
 Marriott
Troy 
  
 Management Agreement, between CHC Lease Partners and Marriott
International, Inc., dated as of February 26, 2000, related to the Marriott Troy Hotel, located at 200 West Big Beaver Road, Troy, Michigan 48084. 
  
 Assignment, Assumption and Amendment of Management Agreement made and entered into as of December 5, 2002, by and among WHP Owner-2A, L.L.C., a Delaware limited liability
company and formerly known as Mar-Ty, L.L.C., as Assignor, WHP Hotel Lessee-2A, Inc., a Delaware corporation, as Assignee, and Marriott International, Inc., a Delaware corporation, as 

  

 SCH. VI-2 

 
Manager, assigning and assuming that certain Management Agreement, between CHC Lease Partners and Marriott International, Inc., dated as of February 26,
2000. 
  
 Memorandum of Agreements, dated as of December 5, 2002, by and among WHP
Hotel Owner-2A, L.L.C., a Delaware limited liability company f/k/a Mar-Ty, L.L.C., as Lessor, WHP Hotel Lessee-2A, Inc., a Delaware corporation, as Lessee, and Marriott International, Inc., a Delaware corporation, as Manager, regarding operation of
a hotel on the premises located in Troy, Michigan. 
  
 Owner Agreement made and
entered into as of the 5th day of December, 2002, by and between WHP Hotel Owner-2A, L.L.C., a Delaware limited
liability company (formerly known as Mar-Ty, LLC), as Lessor, WHP Hotel Lessee-2A, Inc., a Delaware corporation, as Lessee, and Marriott International, Inc., a Delaware corporation, as Manager, regarding property more commonly known as the
“Marriott Troy Hotel” located in Troy, Michigan. 
  
 Asset Management
Agreement, dated as of December 5, 2002, by and between WHP Hotel Lessee-2A, Inc., a Delaware limited partnership and Sunstone Hotel Properties, Inc., a Colorado corporation. 
  
 Marriott Philadelphia West 
  
 Management Agreement, dated as of December 5, 2002, by and between WHP Hotel Lessee-2, Inc.,
a Delaware corporation, as Lessee, and Marriott Hotel Services, Inc., a Delaware corporation, as Manager, related to the Marriott Philadelphia West Hotel located at Matson Ford at Front Street, 111 Crawford Ave, West Conshohocken, Pennsylvania
19428. 
  
 Termination Agreement, entered into as of December 5, 2002, by and
among IHC II, LLC, a Delaware limited liability company, as Primary Manager, Marriott Hotel Services, Inc., a Delaware corporation, as Submanager, Marriott International, Inc., a Delaware corporation, Wyndham International Operating Partnership,
L.P., a Delaware limited partnership, as Lessee, and IHC/Conshohocken Partnership, L.P., a Delaware limited partnership, as Owner. 
  
 Memorandum of Agreements, dated as of December 5, 2002, by and among WHP Ground Lessor, L.P, a Delaware limited partnership, as Ground Lessor, WHP Hotel Owner-2B, L.L.C.,
a Delaware limited liability company, as Ground Lessee, and Marriott Hotel Services, Inc., a Delaware corporation, as Manager, regarding the Marriott Philadelphia West Hotel located at 111 Crawford Avenue, West Conshohocken, PA. 
  
 Manager Acknowledgment, effective December 5, 2002, by and between Sunstone Hotel Properties,
Inc., a Colorado corporation, as Manager, WHP Hotel Lessee-2, Inc., a Delaware corporation, as Franchisee, and Marriott International, Inc., a Delaware corporation, as Franchisor, regarding the Marriott Philadelphia West Hotel located at 111
Crawford Avenue, West Conshohocken, PA. 
  
 Asset Management Agreement, dated as
of December 5, 2002, by and between WHP Hotel Lessee-2, Inc., a Delaware limited partnership and Sunstone Hotel Properties, Inc., a Colorado corporation. 
  

 SCH. VI-3 

 Marriott Houston North 
  
 Property Management Agreement, dated as of December 5, 2002, by and between WHP Lessee-1, Inc., a Delaware corporation, as Lessee, and
Sunstone Hotel Properties, Inc., a Colorado corporation, as Manager, related to the Marriott Houston North Hotel located at 255 N. Sam Houston Parkway East, Houston, Texas 77060. 
  
 Termination Agreement, entered into as of December 5, 2002, by and among IHC II, LLC, a Delaware limited liability company, as Primary
Manager, Marriott Hotel Services, Inc., a Delaware corporation, as Submanager, Marriott International, Inc., a Delaware corporation, Wyndham International Operating Partnership, L.P., a Delaware limited partnership, as Lessee, and IHC/Houston
Partnership, L.P., a Delaware limited partnership, as Owner. 
  
 Manager
Acknowledgment, effective December 5, 2002, by and between Marriott International, Inc., a Delaware corporation, as Franchisor, WHP Hotel Lessee-1, Inc., a Delaware corporation, as Franchisee, and Sunstone Hotel Properties, Inc., a Colorado
corporation, as Manager, for the Marriott Houston North Hotel located at 255 N. Sam Houston Parkway, East Houston, Texas 77060. 
  
 Agreement and Indemnity Regarding Hotel Employees, made and entered into the 5th day of December, 2002, by and among Sunstone Hotel Properties, Inc., a Colorado corporation, as Hotel Manager, WHP Hotel Owner-1, L.P., a Delaware limited partnership, as Hotel Fee Owner, WHP Hotel
Lessee-1, Inc., a Delaware corporation, as Hotel Franchisee and Marriott International, Inc., a Delaware corporation and Marriott Hotel Services, Inc., a Delaware corporation, for employees located at 255 East North Belt Drive, Houston, Texas.

  
 Marriott Tyson’s Corner 
  
 Management Agreement, between Interstone/PAH Partners L.P. and Marriott Hotel Services,
Inc., dated as of December 24, 1996, related to the Marriott Tyson’s Corner Hotel located at 8028 Leesburg Pike, Vienna (Tyson’s Corner), Virginia 22182. 
  
 Assignment, Assumption and Amendment of Management Agreement, made and entered into as of December 5, 2002, by and among Interstone, PAH
Partners L.P., a Delaware limited partnership (formerly known as Interstone/CGL Partners, L.P.), as Assignor, WHP Hotel Lessee-1, Inc., a Delaware corporation, as Assignee, and Marriott Hotel Services, Inc., as Manager, assigning, assuming and
amending that certain Management Agreement between Interstone/PAH Partners L.P. and Marriott Hotel Services, Inc. dated as of December 24, 1996. 
  
 Memorandum of Agreements, dated as of December 5, 2002, by and among WHP Hotel Owner-1, L.P, a Delaware limited partnership, as Lessor, WHP Hotel Lessee-1, Inc., a
Delaware corporation, as Lessee, and Marriott International, Inc., a Delaware corporation, as Manager, regarding operation of a hotel on the premises located in Vienna (Tyson’s Corner), Virginia. 
  
 Owner Agreement made and entered into as of the 5th day of December, 2002, by and between WHP Hotel Owner-1, L.P., a Delaware limited partnership, as Lessor, WHP Hotel Lessee-1, Inc., a Delaware corporation, as
Lessee, and Marriott International, Inc., a Delaware corporation, 

  

 SCH. VI-4 

 
as Manager, regarding property more commonly known as the “Marriott Tyson’s Corner” located in Vienna, Virginia. 
  
 Asset Management Agreement, dated as of December 5, 2002, by and between WHP Hotel Lessee-1,
Inc., a Delaware limited partnership and Sunstone Hotel Properties, Inc., a Colorado corporation. 
  

 SCH. VI-5 

 SCHEDULE VII 
  
 (Amortization Schedule) 
  
 [see attached] 
  

 SCH. VII-1 

 SCHEDULE VIII 
  
 (Liquor/Hospitality Licenses) 
  

[see attached] 
  

 SCH. VIII-1 

 SCHEDULE IX 
  
 (Ground Leases) 
  
 Philadelphia Marriott West, West Conshohocken, Montgomery County, Pennsylvania 
  

	1.	Lease Agreement dated December 5, 2002 by and between WHP Ground Lessor, L.P., a Delaware limited partnership (“Ground Lessor”) and WHP Hotel Owner-2B, L.L.C., a Delaware
limited liability company (“Owner-2B”). 

  

	2.	Memorandum of Lease by and between Ground Lessor and Owner-2B dated December 5, 2002 and to be recorded December
            , 2002 as File No.              of Official Records. 

  
 HYATT NEWPORTER, NEWPORT BEACH, ORANGE COUNTY, CALIFORNIA 
  

	1.	Consolidation, Amendment and Restatement of Leases dated September 30, 1981 between The Irvine Company, a Michigan corporation (“Irvine”) and The Newporter Hotel Corp., a
California corporation (“NHC”). 

  

	2.	Memorandum of Consolidation, Amendment and Restatement of Leases between Irvine and NHC dated September 30, 1981 and recorded September 30, 1981 at Book 14239, Page 1558.

  

	3.	Assignment, Acceptance and Agreement and Consent dated September 30, 1981 among NHC, Newporter J.V., a joint venture between Philotecton USA, Inc. and Ridgway, Ltd., both Delaware
corporations (The “JV”) and Irvine recorded at Book 14239, Page 1575 as Instrument No. 40205. 

  

	4.	Letter dated September 30, 1981 from the JV to Irvine granting Irvine a 45-day right of first refusal to purchase the tenant’s interest under the ground lease.

  

	5.	Assignment of Ground Lease and Grant Deed dated February 27, 1985 between Philotecton USA, Inc. and CSL Newporter Ltd., a California limited partnership (“CSL”), and
recorded February 28, 1985 as Instrument No. 85-70297. 

  

	6.	First Amendment to Consolidation, Amendment and Restatement of Leases between Irvine and CSL dated July 10, 1986 and recorded December 22, 1986 as Instrument No. 86-632993.

  

	7.	Second Amendment to Consolidation, Amendment and Restatement of Leases dated March 9, 1987 between Irvine and CSL. 

  

	8.	Assignment and Assumption of Lessor’s Interest in Ground Leases from Irvine to HAC Real Estate Corp. B, a Delaware corporation (“HAC”) dated June 26, 1992 and
recorded June 30, 1992 as Instrument No. 92-441110. 

  

 SCH. IX-1 

	9.	Assignment and Assumption of Ground Lease dated March 10, 1995 between CSL and Newporter Beach Hotel Investments, LLC, a Washington limited liability company (the “LLC”),
and recorded on March 10, 1995 as Instrument No. 95-0098555. 

  

	10.	Letter dated March 8, 1995 from the LLC to HAC adding, inter alia, a requirement that tenant deliver annual operating and capital budgets to landlord. 

  

	11.	Grant Deed conveying the leasehold estate from the LLC to Patriot American Hospitality Partnership, L.P., a Virginia limited partnership (“Patriot”) dated April 1, 1996
and recorded April 1, 1996 as Instrument No. 19960158352. 

  

	12.	Assignment of Ground Lease conveying the leasehold estate from Patriot to WHP Hotel Owner-1, L.P., a Delaware limited partnership dated December 5, 2002 and recorded
                    ,              as Instrument No.
                    . 

  
 RADISSON ENGLEWOOD, ENGLEWOOD, BERGEN COUNTY, NEW JERSEY 
  

	1.	Ground Lease dated as of March 12, 1987 by and between Nordhoff-South Van Brunt Investors Co., a New Jersey general partnership (“NSVBIC”) and Prime Motor Inns, Inc., a
Delaware corporation (“PMI”). 

  

	2.	Memorandum of Lease between NSVBIC and PMI dated March 12, 1987 and recorded February 4, 1988 at Book 7180, Page 291. 

  

	3.	Letter Waiver dated March 12, 1987 by and between PMI and NSVBIC. 

  

	4.	First Amendment to Lease dated as of December 4, 1987 by and between NSVBIC and PMI. 

  

	5.	Second Amendment to Lease dated as of January 26, 1988 by and between NSVBIC and PMI. 

  

	6.	Letter Agreement dated February 29, 1988 by and between PMI and NSVBIC. 

  

	7.	Assignment of Ground Lease from PMI to N.J. Howard Johnson, L.P., a Delaware limited partnership (“N.J. Howard”) dated March 2, 1988, recorded March 3, 1988 at Book 7186,
Page 66. 

  

	8.	Third Amendment to Lease dated as of March 8, 1988 by and between NSVBIC and PMI. 

  

	9.	Consent to Assignment dated as of September 18, 1996 among NSVBIC, N.J. Property, L.P. (f/k/a N.J. Howard Johnson, L.P.) (“N.J. Property”), Interstate Hotels Corporation
and Interstone Partners I L.P. (“Interstone”). 

  

	10.	Ground Lease Assignment and Assumption Agreement from N.J. Property to Interstone dated September 18, 1996 and recorded September 20, 1996 at Book 7912, Page 777.

  

 SCH. IX-2 

	11.	Assignment of Ground Lease from IHC Realty Partnership, L.P., f/k/a Interstone, dated December 5, 2002 and recorded
                    ,              at Book
            , Page            . 

  

 SCH. IX-3 

 SCHEDULE X 
  
 (Form of Smith Travel Research Reports) 
  
 [see attached] 
  

 SCH. X-1 

 SCHEDULE XI 
  
 (PIP Requirements) 
  
 [see attached] 
  

 SCH. XI-1 

 SCHEDULE XII 
  
 (Assignments of Management Agreement) 
  

	1.	Assignment of Management Agreement and Subordination of Management Fees, dated as of December 5, 2002, by WHP Hotel Lessee-1, Inc. and WHP Hotel Owner-1, L.P. to Bear Stearns
Commercial Mortgage, Inc. and consented and agreed to by Sunstone Hotel Properties, Inc. 

  

	2.	Assignment of Asset Management Agreement an Subordination of Fees, dated as of December 5, 2002, by WHP Hotel Lessee-1, Inc. and WHP Hotel Owner-1, L.P. to Bear Stearns Commercial
Mortgage, Inc. and consented and agreed to by Sunstone Hotel Properties, Inc. 

  

	3.	Assignment of Management Agreement, dated as of December 5, 2002, by WHP Hotel Lessee-1, Inc. and WHP Hotel Owner-1, L.P. to Bear Stearns Commercial Mortgage, Inc. and consented and
agreed to by Hyatt Corporation. 

  

	4.	Consent to Collateral Assignment and Subordination, Non-Disturbance and Attornment Agreement, dated as of December 5, 2002, by WHP Hotel Lessee-1, Inc. and WHP Hotel Owner-1, L.P.
to Bear Stearns Commercial Mortgage, Inc. and consented and agreed to by Marriott Hotel Services, Inc. (Marriott Tyson’s Corner). 

  

	5.	Consent to Collateral Assignment and Subordination, Non-Disturbance and Attornment Agreement, dated as of December 5, 2002, by WHP Hotel Lessee-2A, Inc. and WHP Hotel Owner-2A,
L.L.C. to Bear Stearns Commercial Mortgage, Inc. and consented and agreed to by Marriott International, Inc. (Marriott Troy). 

  

	6.	Consent to Collateral Assignment and Subordination, Non-Disturbance and Attornment Agreement, dated as of December 5, 2002, by WHP Hotel Lessee-2, Inc. and WHP Hotel Owner-2B,
L.L.C. to Bear Stearns Commercial Mortgage, Inc. and consented and agreed to by Marriott Hotel Services, Inc. (Marriott Philadelphia West). 

  

	7.	Assignment of Management Agreement and Subordination of Management Fees, dated as of December 5, 2002, by WHP Hotel Lessee-1, Inc. and WHP Hotel Owner-1, L.P. to Bear Stearns
Commercial Mortgage, Inc. and consented and agreed to by Westcoast Hotels, Inc. 

  

 SCH. XII-1 

 SCHEDULE XIII 
  
 (Manager Accounts) 
  

 SCH. XIII-1 

 SCHEDULE XIV 
  
 (Allocated Purchase Prices) 
  

						
	 Asset

	  	 City, State

	  	Allocated Purchase
Price

	 Hilton Del Mar
	  	Del Mar, CA	  	$	29,488,669
	 Radisson Englewood
	  	Englewood, NJ	  	$	7,880,593
	 West Coast Valley River Inn
	  	Eugene, OR	  	$	18,303,312
	 Radisson Fort Magruder
	  	Williamsburg, VA	  	$	15,252,760
	 Marriott Houston North
	  	Houston, TX	  	$	26,438,117
	 Hilton Huntington
	  	Huntington, NY	  	$	53,130,447
	 Doubletree Guest Suites
	  	Minneapolis, MN	  	$	12,202,208
	 Hyatt Newporter
	  	Newport Beach, CA	  	$	34,827,135
	 Marriott Philadelphia West
	  	Philadelphia, PA	  	$	36,606,624
	 Marriott Troy
	  	Troy, MI	  	$	52,113,597
	 Marriott Tysons Corner
	  	Tysons Corner, VA	  	$	52,113,597

  

 SCH. XIV-1

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