Document:

Promissory Note, dated May 5, 2010

 Exhibit 10.6 

PROMISSORY NOTE 

DEFINED TERMS 
  

			
	 Execution Date:

May 5, 2010
	 	 City and State of Signing:

Chicago, Illinois

		
	 Loan Amount:

$97,750,000.00
	 	 Interest Rate:
 6.09%
per annum

 Borrower: 

SHC Columbus Drive, LLC, a Delaware limited liability company 

Borrower’s Address: 
 200 West
Madison Street, Suite 1700 
 Chicago, Illinois 60606 

with a copy to: 
 Perkins Coie LLP

 131 South Dearborn Avenue, Suite 1700 

Chicago, Illinois 60603 
 Attn: Bruce A. Bonjour

 Holder: 
 Metropolitan Life
Insurance Company, a New York corporation 
 Holder’s Address: 

Metropolitan Life Insurance Company, a New York corporation 

10 Park Avenue 
 Morristown, New Jersey 07962

 Attention: Senior Vice President 

Real Estate Investments 
 and:

 Metropolitan Life Insurance Company 

125 South Wacker Drive, Suite 1100 
 Chicago,
Illinois 60606-4478 
 Attention: Director 
  

			
	 Maturity Date: June 1, 2017.
  

The first day of the 85th calendar month following the Advance Date
	 	Advance Date: May 5, 2010.

  

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	 Interest Only Period:

The period commencing on the Advance Date and ending on the last day of the 18th calendar month following the Advance Date (i.e., November 30, 2011).

  
 Interest Installment:

 
 During the Interest Only Period, monthly installments of interest only at the
Interest Rate in arrears for the preceding calendar month, each in the amount of $496,081.25.
	 	 Principal and Interest Installment Date:
  

The first day of the 20th calendar month following the Advance Date (i.e., January 1, 2012).

		
	 Monthly Installment: Equal monthly installments of principal and interest at the Interest Rate each in the amount of $705,396.15.

  
 The Monthly Installment is based upon an amortization period of 20
years.
	 	 Permitted Prepayment:

The Loan may not be prepaid in whole or in part at any time prior to the Maturity Date except as expressly provided in Section 8
hereof.

 Liable Party: 

Strategic Hotel Funding, L.L.C., a Delaware limited liability company, and its successors and assigns as and to the extent permitted under the Guaranty.

 Addresses of Liable Party: 

200 West Madison Street, Suite 1700 
 Chicago,
Illinois 60606 
 with a copy to: 

Perkins Coie LLP 
 131 South Dearborn Avenue,
Suite 1700 
 Chicago, Illinois 60603 

Attn: Bruce A. Bonjour 
 Operating Lessee:

 DTRS Columbus Drive, LLC, a Delaware limited liability company, and its successors and assigns as and to the extent permitted under the
Loan Documents 
 Addresses of Operating Lessee: 

200 West Madison Street, Suite 1700 
 Chicago,
Illinois 60606 
  

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 with a copy to: 

Perkins Coie LLP 
 131 South Dearborn Avenue,
Suite 1700 
 Chicago, Illinois 60603 

Attn: Bruce A. Bonjour 
 Late Charge: 

 An amount equal to four cents ($.04) for each dollar that is overdue. 

Default Rate: 
 An annual rate equal to
the Interest Rate plus four percent (4%) but in no event greater than the highest rate permitted under applicable law. 
 Note: This
Promissory Note. Mortgage: Mortgage, Security Agreement, and Fixture Filing dated as of the Execution Date granted by Borrower to Holder. Loan Documents: This Note, the Mortgage and any other documents related to this Note, and/or the
Mortgage and all renewals, amendments, modifications, restatements and extensions of these documents. Guaranty: Guaranty dated as of the Execution Date and executed by Liable Party in favor of Holder. Indemnity Agreement: Unsecured
Indemnity Agreement dated as of the Execution Date and executed by Borrower and Liable Party in favor of Holder. Borrower Guaranty: Borrower Guaranty shall have the meaning ascribed in the Mortgage. Subordinate Mortgage shall have the
meaning ascribed in the Mortgage. Affiliated Guarantor: Affiliated Guarantor shall have the meaning ascribed in the Mortgage. Affiliated Guaranty: Affiliated Guaranty shall have the meaning ascribed in the Mortgage. Affiliated
Guarantor Subordinate Mortgage: Affiliated Guarantor Subordinate Mortgage shall have the meaning ascribed in the Mortgage. The Unsecured Indemnity Agreement, the Guaranty, the Borrower Guaranty, the Subordinate Mortgage, the Affiliated Guaranty
and the Affiliated Guarantor Subordinate Mortgage are not Loan Documents and shall survive repayment of the Loan or other termination of the Loan Documents as and to the extent provided therein. 

FOR VALUE RECEIVED, Borrower promises to pay to the order of Holder at Holder’s Address or such other place as Holder may from time
to time designate, the Loan Amount with interest payable in the manner described below, in money of the United States of America that at the time of payment shall be legal tender for payment of all obligations. 

Capitalized terms which are not defined in this Note shall have the meanings set forth in the Mortgage. 

1. Payment of Principal and Interest. Principal and interest under this Note shall be payable as follows: 

(a) Interest on the Loan Amount shall accrue from the Advance Date at the Interest Rate and the interest accrued from the Advance Date to
the last day of the month in which the Advance Date occurs shall be paid by Borrower on the first day of the first calendar month following the Advance Date; 
  

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 (b) Commencing on the first day of the second calendar month following the Advance Date and
on the first day of each calendar month thereafter including the first day of the 19th month after the Advance Date (i.e., December 1, 2011), Borrower shall pay the Interest Installment; 

(c) Commencing on the Principal and Interest Installment Date and on the first day of each calendar month thereafter, to and including
the first day of the calendar month immediately preceding the Maturity Date, Borrower shall pay the Monthly Installment; and 

(d) On the Maturity Date, a final payment in the aggregate amount of the unpaid principal sum evidenced by this Note, all accrued and
unpaid interest, and all other sums evidenced by this Note or secured by the Mortgage and/or any other Loan Documents as well as any future advances under the Mortgage that may be made to or on behalf of Borrower by Holder following the Advance Date
(collectively, the “Secured Indebtedness”), shall become immediately payable in full. 
 Borrower acknowledges
and agrees that a substantial portion of the original Loan Amount shall be outstanding and due on the Maturity Date. 
 Interest
shall be calculated on the basis of a 30 day month and a 360 day year, except that (i) if the Advance Date occurs on a date other than the first day of a calendar month, interest payable for the period commencing on the Advance Date and ending
on the last day of the month in which the Advance Date occurs shall be calculated on the basis of the actual number of days elapsed over a 365 day or 366 day year, as applicable, and (ii) if the Maturity Date occurs on a date other than the
last day of the month, interest payable for the period commencing on the first day of the month in which the Maturity Date occurs and ending on the Maturity Date shall be calculated on the basis of the actual number of days elapsed over a 365 day or
366 day year, as applicable. 
 2. Application of Payments. At the election of Holder, and to the extent permitted by
law, all payments shall be applied in the order selected by Holder to any expenses, prepayment fees, late charges, escrow deposits and other sums due and payable under the Loan Documents, and to unpaid interest at the Interest Rate or at the Default
Rate, as applicable. The balance of any payments shall be applied to reduce the then unpaid Loan Amount. 
 3. Security.
The covenants of the Mortgage are incorporated by reference into this Note. This Note shall evidence, and the Mortgage shall secure, the Secured Indebtedness. 

4. Late Charge. If any payment of interest, any payment of a Monthly Installment or any payment of a required escrow deposit is
not paid within 7 days after the due date, Holder shall have the option to charge Borrower the Late Charge. The Late Charge is for the purpose of defraying the expenses incurred in connection with handling and processing delinquent payments and is
payable in addition to any other remedy Holder may have. Unpaid Late Charges shall become part of the Secured Indebtedness and shall be added to any subsequent payments due under the Loan Documents. 

5. Acceleration Upon Default. At the option of Holder, if Borrower fails to pay any sum specified in this Note within 7 days of
the due date, or if an Event of Default occurs under 
  

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the Mortgage or the other Loan Documents, the Secured Indebtedness, and all other sums evidenced and/or secured by the Loan Documents, including without limitation the Prepayment Fee (as defined
in Section 9(b) below) (collectively, the “Accelerated Loan Amount”) shall become immediately due and payable. 

6. Interest Upon Default. The Accelerated Loan Amount shall bear interest at the Default Rate which shall never exceed the maximum
rate of interest permitted to be contracted for under the laws of the State of Illinois. The Default Rate shall commence upon the occurrence of an Event of Default and shall continue until all defaults are cured. This Note shall also bear interest
at the Default Rate following any judgment on the indebtedness evidenced hereby. 
 7. Limitation on Interest. The
agreements made by Borrower with respect to this Note and the other Loan Documents are expressly limited so that in no event shall the amount of interest received, charged or contracted for by Holder exceed the highest lawful amount of interest
permissible under the laws applicable to the Loan. If at any time performance of any provision of this Note or the other Loan Documents results in the highest lawful rate of interest permissible under applicable laws being exceeded, then the amount
of interest received, charged or contracted for by Holder shall automatically and without further action by any party be deemed to have been reduced to the highest lawful amount of interest then permissible under applicable laws. If Holder shall
ever receive, charge or contract for, as interest, an amount which is unlawful, at Holder’s election, the amount of unlawful interest shall be refunded to Borrower (if actually paid) or applied to reduce the then unpaid Loan Amount. To the
fullest extent permitted by applicable laws, any amounts contracted for, charged or received under the Loan Documents included for the purpose of determining whether the Interest Rate would exceed the highest lawful rate shall be calculated by
allocating and spreading such interest to and over the full stated term of this Note. 
 8. Prepayment. Borrower shall
not have the right to prepay all or any portion of the Loan Amount at any time during the term of this Loan except as expressly provided in this Section 8. If Borrower provides notice of its intention to prepay, the Accelerated Loan Amount
shall become due and payable on the date specified in the prepayment notice. 
 (a) During the 90 day period prior to the
Maturity Date, Borrower may prepay the Loan without a Prepayment Fee on 30 days prior written notice provided the Affiliated Guarantor Loan (as defined in Section 2.12 of the Mortgage) is prepaid simultaneously with the prepayment of the Loan.
If a prepayment is made during the 90 day period prior to the Maturity Date, then no Prepayment Fee shall be required under Sections 8(b), (c) or (d) below. 

(b) Borrower may prepay the Loan with a Prepayment Fee on 60 days prior written notice, provided such prepayment is accompanied by the
Prepayment Fee and further provided the Affiliated Guarantor Loan is prepaid simultaneously with the prepayment of the Loan. 

(c) Borrower may prepay the Loan in connection with the sale of the Property with a Prepayment Fee, subject to satisfaction of the
requirements in Section 10.9 of the Mortgage for the release of the Borrower Guaranty and the release of the Subordinate Mortgage. 
  

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 (d) Borrower shall be permitted to prepay this Loan in part in connection with the sale of
the Affiliated Guarantor Property with a Prepayment Fee, subject to satisfaction of the requirements in Section 10.9 of the Mortgage for the release of the Affiliated Guaranty and the release of the Affiliated Guarantor Subordinate Mortgage.

 (e) Except as provided in clauses (c) or (d) above, it is expressly acknowledged that the Loan cannot be prepaid by
Borrower unless the Affiliated Guarantor Loan is prepaid by the Affiliated Guarantor simultaneously with the prepayment of the Loan. 

(f) It is expressly acknowledged that the Borrower Guaranty shall be released and the Subordinate Mortgage which secures the
Borrower’s obligations under the Borrower Guaranty shall be reconveyed if, as and when such release and reconveyance are permitted under the terms of the Borrower Guaranty. 

9. Prepayment Fee. 

(a) Any tender of payment by Borrower or any other person or entity of the Secured Indebtedness, other than as expressly provided in the
Loan Documents, shall constitute a prohibited prepayment. If a prepayment of all or any part of the Secured Indebtedness is made following (i) an Event of Default and an acceleration of the Maturity Date, (ii) the application of money to
the principal of the Loan after a casualty or condemnation, or (iii) in connection with a purchase of the Property or a repayment of the Secured Indebtedness at any time before, during or after, a foreclosure or sale of the Property, then to
compensate Holder for the loss of the investment, Borrower shall pay an amount equal to the Prepayment Fee (as hereinafter defined). Notwithstanding the foregoing, so long as Borrower makes a good faith effort to recover any Prepayment Fee which
would be due as a result of a casualty or condemnation, from the insurer in the case of a casualty or from the condemning authority, then the Prepayment Fee due as a result of the casualty or condemnation shall be waived except to the extent
recovered by Borrower. 
 (b) The “Prepayment Fee” shall be the greater of (A) (x) the present value
of all remaining payments of principal and interest including the outstanding principal due on the Maturity Date, discounted at the rate which, when compounded monthly, is equivalent to the Treasury Rate (as hereinafter defined), compounded
semi-annually, less (y) the amount of the principal then outstanding (to be adjusted in the event of a partial prepayment), or (B) one percent (1%) of the amount of the Loan being prepaid. 

(c) The “Treasury Rate” shall be the annualized yield on securities issued by the United States Treasury having a
maturity equal to the remaining stated term of this Note, as quoted in the Federal Reserve Statistical Release [H. 15 (519)] under the heading “U.S. Government Securities - Treasury Constant Maturities” for the date which is five
(5) Business Days prior to the date on which prepayment is being made. If this rate is not available as of the date of prepayment, the Treasury Rate shall be determined by interpolating between the yield on securities of the next longer and
next shorter maturity. If the Treasury Rate is no longer published, Holder shall select a comparable rate. Holder will, upon request, provide an estimate of the amount of the Prepayment Fee two weeks before the date of the scheduled prepayment. A
Business Day is a day on which Holder is conducting normal business operations. 
  

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 10. Waiver of Right to Prepay Note Without Prepayment Fee. Borrower acknowledges that
Holder has relied upon the anticipated investment return under this Note in entering into transactions with, and in making commitments to, third parties and that the tender of any prohibited prepayment or any permitted prepayment which pursuant to
the terms of this Note requires a Prepayment Fee, shall include the Prepayment Fee. Borrower agrees that the determination of the Interest Rate was based on the intent, expectation and agreement (and the Interest Rate would have been higher without
such agreement) of Borrower and Holder that the amounts advanced under this Note would not be prepaid during the term of this Note, or if any such prepayment would occur, the Prepayment Fee would apply (except as expressly permitted by the terms of
this Note). Borrower also agrees that the Prepayment Fee represents the reasonable estimate of Holder and Borrower of a fair average compensation for the loss that may be sustained by Holder as a result of a prepayment of this Note and it shall be
paid without prejudice to the right of Holder to collect any other amounts provided to be paid under the Loan Documents. 

BORROWER EXPRESSLY (A) WAIVES ANY RIGHTS IT MAY HAVE UNDER APPLICABLE STATE LAW TO PREPAY THIS NOTE, IN WHOLE OR IN PART, WITHOUT
FEE OR PENALTY, UPON ACCELERATION OF THE MATURITY DATE OF THIS NOTE, AND (B) AGREES THAT IF, FOR ANY REASON, A PREPAYMENT OF THIS NOTE IS MADE, UPON OR FOLLOWING ANY ACCELERATION OF THE MATURITY DATE OF THIS NOTE BY HOLDER ON ACCOUNT OF ANY
DEFAULT BY BORROWER UNDER ANY LOAN DOCUMENT, INCLUDING BUT NOT LIMITED TO ANY TRANSFER, FURTHER ENCUMBRANCE OR DISPOSITION WHICH IS PROHIBITED OR RESTRICTED BY THE MORTGAGE, THEN BORROWER SHALL BE OBLIGATED TO PAY CONCURRENTLY THE PREPAYMENT FEE
SPECIFIED IN SECTION 9. BY EXECUTING THIS NOTE, BORROWER AGREES THAT HOLDER’S AGREEMENT TO MAKE THE LOAN AT THE INTEREST RATE AND FOR THE TERM SET FORTH IN THIS NOTE CONSTITUTES ADEQUATE CONSIDERATION FOR THIS WAIVER AND AGREEMENT. 

11. Liability of Borrower. 

(a) Except as expressly set forth in the balance of this Section or in the Indemnity Agreement or Guaranty, anything contained herein or
in any other Loan Documents to the contrary notwithstanding, no recourse shall be had for the payment of the principal or interest on the Note or for any other obligation hereunder or under the Loan Documents against (i) any affiliate, parent
company, trustee or advisor of Borrower, Operating Lessee, Liable Party, or owner of a direct or indirect beneficial or equitable interest in Borrower, Operating Lessee or Liable Party, any member in Borrower, Operating Lessee, or Liable Party or
any partner, shareholder or member therein (other than against Liable Party pursuant to the Guaranty or Indemnity Agreement or against Affiliated Guarantor under the Affiliated Guaranty or the Affiliated Guarantor Subordinate Mortgage);
(ii) any legal representative, heir, estate, successor or assign of any thereof; (iii) any corporation (or any officer, director, employee or shareholder thereof), individual or entity to which any ownership interest in Borrower, Operating
Lessee or Liable Party shall have been transferred; (iv) any purchaser of any asset of Borrower, Operating Lessee or Liable Party; or (v) any other Person (except Borrower and Liable Party pursuant to the Guaranty and except for the
Affiliated Guarantor under the Affiliated Guaranty or the 
  

 7 

 
Affiliated Guarantor Subordinate Mortgage), for any deficiency or other sum owing with respect to the Note. It is understood that the Note (except as set forth in the balance of this Section and
in the Indemnity Agreement or Guaranty) may not be enforced against any person described in clauses (i) through (v) above (other than against Liable Party pursuant to the Indemnity Agreement or Guaranty as set forth in clauses (i) and
(v) above and other than the Affiliated Guarantor under the Affiliated Guaranty or the Affiliated Guarantor Subordinate Mortgage as set forth in clauses (i) and (v) above) unless such person is independently liable for the obligations
under the Loan Documents, the Indemnity Agreement, the Guaranty or other document relating to the Loan, and Holder agrees not to sue or bring any legal action or proceeding against any such person in such respect. However, nothing contained in this
Section or the Loan Documents shall: 
 (i) prevent recourse to the Borrower or, if and to the extent applicable, the Liable
Party or the assets of Borrower, or, if and to the extent applicable, the assets of the Liable Party, or enforcement of the Mortgage or other instrument or document by which Borrower is bound pursuant to the Loan Documents; 

(ii) if and to the extent applicable, prevent recourse to the Affiliated Guarantor pursuant to the Affiliated Guaranty or, if and to the
extent applicable, the enforcement of the Affiliated Guarantor Subordinate Mortgage; 
 (iii) limit Holder’s rights to
institute or prosecute a legal action or proceeding or otherwise make a claim against Borrower, Operating Lessee and/or the Liable Party for damages and losses to the extent arising directly or indirectly from any of the following or against the
person or persons committing any of the following: 
 (1) fraud or intentional misrepresentation by Borrower, Operating Lessee
and/or the Liable Party, 
 (2) the misappropriation by Borrower, Operating Lessee or any affiliate of Borrower or Operating
Lessee of any proceeds (including, without limitation, any Rents, security deposits, tenant letters of credit, insurance proceeds and condemnation proceeds), including (x) the failure to pay any such amounts to Holder as and to the extent
required under the Loan Documents, (y) the collection of Rents for a period of more than 30 days in advance, and (z) such amounts received after an Event of Default and not applied to the Loan or in accordance with the Loan Documents to
operating and maintenance expenses of the Property, 
 (3) the breach of any representation, warranty, covenant or
indemnification provision in the Indemnity Agreement or in the Mortgage with respect to Hazardous Materials, 
 (4) physical
damage to the Property from intentional waste committed by Borrower, Operating Lessee or any affiliate of Borrower or Operating Lessee, 

(5) any and all liabilities, obligations, losses, damages, costs and expenses (including, without limitation, reasonable attorneys’
fees, causes of action, suits, claims, demands and adjustments of any nature or description whatsoever) which may at any time be imposed upon, incurred by or awarded against Holder, in the event (and arising out of

  

 8 

 
such circumstances) that Borrower should raise any defense, counterclaim and/or allegation in any foreclosure action by Holder relative to the Property, which is found by a court of competent
jurisdiction to have been raised by Borrower or Operating Lessee in bad faith or to be without basis in fact or law, 
 (iv)
limit Holder’s rights to recover damages to the extent arising from Borrower’s or Operating Lessee’s failure to comply with the provisions of the Mortgage pertaining to ERISA, 

(v) limit Holder’s rights to recover all amounts due and payable pursuant to Sections 11.6 and 11.7 of the Mortgage and any amount
expended by Holder in connection with the foreclosure of the Mortgage, 
 (vi) limit Holder’s rights to enforce any leases
entered into by Borrower or its affiliates as tenant, guarantees, or other agreements entered into by Borrower in a capacity other than as borrower or any policies of insurance; or 

(vii) limit Holder’s rights to recover costs and damages arising from Borrower’s or Operating Lessee’s failure to pay any
Premiums or Impositions in the event Borrower is not required to deposit such amounts with Holder pursuant to Section 2.5 of the Mortgage. 

(b) Notwithstanding the foregoing, this limitation of liability shall not apply and the Loan will be a fully recourse Loan to Borrower
and to Liable Party: 
 (i) in the event of any Transfer of the Property in violation of the Mortgage or in the event Borrower
or Operating Lessee enters into any indebtedness for borrowed money which is secured by a lien, security interest or other encumbrance of any part of the Property, other than the Loan and any related obligations to Holder with respect to the Loan,
the Borrower Guaranty and the Subordinate Mortgage or except either as allowed by the Mortgage or approved by Holder; 
 (ii)
if (i) Borrower, Operating Lessee or Liable Party commences a voluntary bankruptcy or insolvency proceeding under the Bankruptcy Code which is not dismissed within 90 days of filing, or (ii) an involuntary case is commenced against
Borrower, Operating Lessee or Liable Party under the Bankruptcy Code which is not dismissed within 90 days of filing, or (iii) an involuntary case is commenced against Borrower or Operating Lessee under the Bankruptcy Code with the collusion of
Borrower or Operating Lessee, Liable Party or any of their affiliates or related entities, or (iv) a petition for relief is filed with respect to Borrower or Operating Lessee or Liable Party under the Bankruptcy Code through the actions of
Borrower or Operating Lessee, Liable Party or any of their affiliates or related entities which is not dismissed within 90 days of filing. Notwithstanding the previous sentence, neither Borrower nor Liable Party shall be personally liable for
payment of the Loan merely by reason of an involuntary bankruptcy (irrespective of its duration) as to which the following conditions are satisfied (1) such involuntary bankruptcy is not solicited, procured or supported by Borrower or any
Related Person (defined below); (2) there is no debt or other obligation and there are no creditors, in any case which are prohibited by the Loan Documents; (3) Borrower and each 

 

 9 

 
Related Person in such involuntary bankruptcy proceeding will consent to and support and perform all actions requested by Holder to obtain relief from the automatic stay and to obtain adequate
protection for Holder; (4) none of the Borrower nor any Related Persons shall propose or in any way support any plan of reorganization which in any way modifies or seeks to modify any provisions of the Loan Documents or any of Holder’s
rights under the Loan Documents; and (5) none of Borrower nor any Related Persons shall propose or consent to any use of cash collateral except with Holder’s consent, which may be withheld in Holder’s sole discretion. As used herein,
a “Related Person” shall mean (a) Affiliated Guarantor and any guarantor or other person or entity which is liable in any way (including contingently liable) for any part of the Loan, (b) person or entity which has any
direct or indirect interest in Borrower or in which Borrower has any direct or indirect interest, or (c) any person who, by reason of any relationship with any of the foregoing, would be reasonably expected to act in accordance with the request
of any of the foregoing. 
 (c) Notwithstanding the foregoing, Holder agrees that its sole recourse against any Operating Lessee
for such Operating Lessee’s obligations hereunder or under the other Loan Documents shall be to the collateral owned by such Operating Lessee and pledged to Holder pursuant to the terms of the Loan Documents; provided however, the foregoing
shall not limit Holder’s rights against Borrower and/or Liable Party and/or Affiliated Guarantor with respect to the obligations of Operating Lessee to the extent otherwise permitted under the Loan Documents. 

12. Waiver by Borrower. Borrower and others who may become liable for the payment of all or any part of this Note, and each of
them, waive diligence, demand, presentment for payment, notice of nonpayment, protest, notice of dishonor and notice of protest, notice of intent to accelerate and notice of acceleration and specifically consent to and waive notice of any
amendments, modifications, renewals or extensions of this Note, including the granting of extension of time for payment, whether made to or in favor of Borrower or any other person or persons. 

13. Exercise of Rights. No single or partial exercise by Holder, or delay or omission in the exercise by Holder, of any right or
remedy under the Loan Documents shall waive or limit the exercise of any such right or remedy. Holder shall at all times have the right to proceed against any portion of or interest in the Property in the manner that Holder may deem appropriate,
without waiving any other rights or remedies. The release of any party under this Note shall not operate to release any other party which is liable under this Note and/or under the other Loan Documents or under the Indemnity Agreement. 

14. Fees and Expenses. If Borrower defaults under this Note, Borrower shall be personally liable for and shall pay to Holder, in
addition to the sums stated above, the costs and expenses of enforcement and collection, including a reasonable sum as an attorney’s fee. This obligation is not limited by Section 11. 

15. No Amendments. This Note may not be modified or amended except in a writing executed by Borrower and Holder. No waivers shall
be effective unless they are set forth in a writing signed by the party which is waiving a right. This Note and the other Loan Documents are the final expression of the lending relationship between Borrower and Holder, and there is no unwritten
agreement with respect to the subject matter of the Loan. 
  

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 16. Governing Law. This Note is to be construed and enforced in accordance with the
laws of the state of Illinois, without regard to principles of conflicts of laws. 
 17. Construction. The words
“Borrower” and “Holder” shall be deemed to include their respective heirs, representatives, successors and assigns, and shall denote the singular and/or plural, and the masculine and/or feminine, and natural and/or artificial
persons, as appropriate. The provisions of this Note shall remain in full force and effect notwithstanding any changes in the shareholders, partners or members of Borrower. If more than one party is Borrower, the obligations of each party shall be
joint and several. The captions in this Note are inserted only for convenience of reference and do not expand, limit or define the scope or intent of any section of this Note. 

18. Notices. All notices, demands, requests and consents permitted or required under this Note shall be given in the manner
prescribed in the Mortgage. 
 19. Time of the Essence. Time shall be of the essence with respect to all of
Borrower’s obligations under this Note. 
 20. Severability. If any provision of this Note should be held
unenforceable or void, then that provision shall be deemed separable from the remaining provisions and shall not affect the validity of this Note, except that if that provision relates to the payment of any monetary sum, then Holder may, at its
option, declare the Secured Indebtedness (together with the Prepayment Fee) immediately due and payable. 
 [Signature on
Following Page] 
  

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 IN WITNESS WHEREOF, Borrower has executed this Note as of the Execution Date. 

 

			
	SHC Columbus Drive, LLC,
	a Delaware limited liability company
		
	By:	 	 /s/ Jonathan P. Stanner

		 	Jonathan P. Stanner
		 	Vice President, Corporate Finance

  

 S-1Deed of Trust, Security Agreement and Fixture Filing, dated May 5, 2010

Table of Contents

 Exhibit 10.7 

RECORDING REQUESTED 
 BY AND WHEN RECORDED

 RETURN TO: 
 Alan J. Robin, Esq.

 Shartsis Friese LLP 
 One Maritime
Plaza, 18th Floor 
 San Francisco, CA 94111 

DEED OF TRUST, SECURITY AGREEMENT AND 

FIXTURE FILING 

BY 
 SHR St.
Francis, L.L.C. 
 a Delaware limited liability company, 

as Trustor 
 and

 DTRS St. Francis, L.L.C., a Delaware limited liability, 

Operating Lessee 

TO 
 FIDELITY
NATIONAL TITLE INSURANCE COMPANY 
 as Trustee 

for the benefit of 

METROPOLITAN LIFE INSURANCE COMPANY, 

a New York corporation, 

as Beneficiary 

May 5, 2010 

Table of Contents

 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
	ARTICLE I    GRANT OF SECURITY	  	4
			
	 Section 1.1
	  	REAL PROPERTY GRANT	  	4
			
	 Section 1.2
	  	PERSONAL PROPERTY GRANT	  	7
			
	 Section 1.3
	  	CONDITIONS TO GRANT	  	8
		
	ARTICLE II    TRUSTOR COVENANTS	  	8
			
	 Section 2.1
	  	DUE AUTHORIZATION, EXECUTION, AND DELIVERY	  	8
			
	 Section 2.2
	  	PERFORMANCE BY TRUSTOR; HOTEL LICENSES AND PERMITS	  	9
			
	 Section 2.3
	  	WARRANTY OF TITLE TO REAL PROPERTY AND FF&E	  	9
			
	 Section 2.4
	  	TAXES, LIENS AND OTHER CHARGES	  	10
			
	 Section 2.5
	  	ESCROW DEPOSITS	  	10
			
	 Section 2.6
	  	CARE AND USE OF THE PROPERTY	  	12
			
	 Section 2.7
	  	COLLATERAL SECURITY INSTRUMENTS	  	13
			
	 Section 2.8
	  	MANAGEMENT AGREEMENT	  	13
			
	 Section 2.9
	  	FF&E	  	14
			
	 Section 2.10
	  	SUITS AND OTHER ACTS TO PROTECT THE PROPERTY	  	14
			
	 Section 2.11
	  	LIENS AND ENCUMBRANCES	  	15
			
	 Section 2.12
	  	DEBT SERVICE RESERVE ACCOUNT	  	15
			
	 Section 2.13
	  	PROCEEDS DEPOSIT ACCOUNT	  	17
		
	ARTICLE III    INSURANCE	  	18
			
	 Section 3.1
	  	REQUIRED INSURANCE AND TERMS OF INSURANCE POLICIES	  	18
			
	 Section 3.2
	  	ADJUSTMENT OF CLAIMS	  	21
			
	 Section 3.3
	  	ASSIGNMENT TO BENEFICIARY	  	22
		
	ARTICLE IV    BOOKS, RECORDS AND ACCOUNTS	  	22
			
	 Section 4.1
	  	BOOKS AND RECORDS	  	22
			
	 Section 4.2
	  	PROPERTY REPORTS	  	23
			
	 Section 4.3
	  	ADDITIONAL MATTERS	  	23
		
	ARTICLE V    LEASES AND OTHER AGREEMENTS AFFECTING THE PROPERTY	  	24
			
	 Section 5.1
	  	TRUSTOR’S REPRESENTATIONS AND WARRANTIES	  	24

  

 -i- 

Table of Contents

 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	 	  	Page
	 Section 5.2
	  	REPRESENTATIONS AND COVENANTS WITH RESPECT TO THE OPERATING LEASE.	  	24
			
	 Section 5.3
	  	ASSIGNMENT OF LEASES	  	25
			
	 Section 5.4
	  	PERFORMANCE OF OBLIGATIONS	  	25
			
	 Section 5.5
	  	SUBORDINATE LEASES	  	26
			
	 Section 5.6
	  	LEASING COMMISSIONS	  	26
			
	 Section 5.7
	  	REPRESENTATIONS AND COVENANTS WITH RESPECT TO THE OWNER AGREEMENT.	  	27
		
	 ARTICLE VI    ENVIRONMENTAL HAZARDS
	  	27
			
	 Section 6.1
	  	REPRESENTATIONS AND WARRANTIES	  	27
			
	 Section 6.2
	  	REMEDIAL WORK	  	28
			
	 Section 6.3
	  	ENVIRONMENTAL SITE ASSESSMENT	  	28
			
	 Section 6.4
	  	UNSECURED OBLIGATIONS	  	28
			
	 Section 6.5
	  	HAZARDOUS MATERIALS	  	29
			
	 Section 6.6
	  	REQUIREMENTS OF ENVIRONMENTAL LAWS	  	30
		
	 ARTICLE VII    CASUALTY, CONDEMNATION AND RESTORATION
	  	30
			
	 Section 7.1
	  	TRUSTOR’S REPRESENTATIONS	  	30
			
	 Section 7.2
	  	RESTORATION	  	31
			
	 Section 7.3
	  	CONDEMNATION	  	32
			
	 Section 7.4
	  	CASUALTY AND CONDEMNATION RESTORATION PURSUANT TO MANAGEMENT AGREEMENT.	  	33
			
	 Section 7.5
	  	REQUIREMENTS FOR RESTORATION	  	34
		
	 ARTICLE VIII    REPRESENTATIONS, WARRANTIES AND COVENANTS OF TRUSTOR
	  	35
			
	 Section 8.1
	  	ERISA	  	35
			
	 Section 8.2
	  	NON-RELATIONSHIP	  	35
			
	 Section 8.3
	  	NO ADVERSE CHANGE	  	36
			
	 Section 8.4
	  	TRUSTOR’S REPRESENTATIONS AND WARRANTIES	  	36
			
	 Section 8.5
	  	COVENANTS AND AGREEMENTS WITH RESPECT TO LIABLE PARTY AND STRATEGIC HOTELS & RESORTS, INC	  	36
			
	 Section 8.6
	  	FOREIGN INVESTOR	  	38

  

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Table of Contents

 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	 	  	Page
	 Section 8.7
	  	US PATRIOT ACT	  	38
		
	 ARTICLE IX    EXCULPATION AND LIABILITY
	  	38
			
	 Section 9.1
	  	LIABILITY OF TRUSTOR	  	38
			
	 Section 9.2
	  	RECOURSE LOAN	  	41
		
	ARTICLE X    SINGLE PURPOSE ENTITY; CHANGE IN OWNERSHIP, CONVEYANCE OF PROPERTY’
                         PROHIBITIONS ON FINANCING AND DEBT	  	42
			
	 Section 10.1
	  	SINGLE PURPOSE ENTITY; INDEPENDENT DIRECTOR; TRUSTOR GUARANTY AND SUBORDINATE DEED OF TRUST	  	42
			
	 Section 10.2
	  	CONVEYANCE OF PROPERTY, CHANGE IN OWNERSHIP AND COMPOSITION	  	43
			
	 Section 10.3
	  	ONE TIME TRANSFER RIGHT	  	43
			
	 Section 10.4
	  	OTHER PERMITTED TRANSFERS	  	44
			
	 Section 10.5
	  	PROHIBITION ON SUBORDINATE FINANCING	  	46
			
	 Section 10.6
	  	PERMITTED DEBT	  	46
			
	 Section 10.7
	  	PERMITTED LIENS	  	47
			
	 Section 10.8
	  	RESTRICTIONS ON ADDITIONAL OBLIGATIONS	  	47
			
	 Section 10.9
	  	RELEASE OF TRUSTOR GUARANTY	  	47
			
	 Section 10.10
	  	STATEMENTS REGARDING OWNERSHIP	  	48
		
	 ARTICLE XI    DEFAULTS AND REMEDIES
	  	49
			
	 Section 11.1
	  	EVENTS OF DEFAULT	  	49
			
	 Section 11.2
	  	REMEDIES UPON DEFAULT	  	50
			
	 Section 11.3
	  	APPLICATION OF PROCEEDS OF SALE	  	51
			
	 Section 11.4
	  	WAIVER OF JURY TRIAL	  	52
			
	 Section 11.5
	  	BENEFICIARY’S RIGHT TO PERFORM TRUSTOR’S OBLIGATIONS	  	52
			
	 Section 11.6
	  	BENEFICIARY REIMBURSEMENT	  	52
			
	 Section 11.7
	  	FEES AND EXPENSES	  	52
			
	 Section 11.8
	  	WAIVER OF CONSEQUENTIAL DAMAGES	  	52
			
	 Section 11.9
	  	INDEMNIFICATION OF TRUSTEE	  	52
			
	 Section 11.10
	  	ACTIONS BY TRUSTEE	  	53

  

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 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	 	  	Page
	 Section 11.11
	  	SUBSTITUTION OF TRUSTEE	  	53
		
	 ARTICLE XII    TRUSTOR AGREEMENTS AND FURTHER ASSURANCES
	  	53
			
	 Section 12.1
	  	PARTICIPATION AND SALE OF LOAN	  	53
			
	 Section 12.2
	  	REPLACEMENT OF NOTE	  	54
			
	 Section 12.3
	  	TRUSTOR’S ESTOPPEL	  	54
			
	 Section 12.4
	  	FURTHER ASSURANCES	  	55
			
	 Section 12.5
	  	SUBROGATION	  	55
		
	 ARTICLE XIII    SECURITY AGREEMENT
	  	55
			
	 Section 13.1
	  	SECURITY AGREEMENT	  	55
			
	 Section 13.2
	  	REPRESENTATIONS AND WARRANTIES	  	56
			
	 Section 13.3
	  	CHARACTERIZATION OF PROPERTY	  	56
			
	 Section 13.4
	  	PROTECTION AGAINST PURCHASE MONEY SECURITY INTERESTS	  	56
		
	 ARTICLE XIV    MISCELLANEOUS COVENANTS
	  	57
			
	 Section 14.1
	  	NO WAIVER	  	57
			
	 Section 14.2
	  	NOTICES	  	57
			
	 Section 14.3
	  	HEIRS AND ASSIGNS; TERMINOLOGY	  	57
			
	 Section 14.4
	  	SEVERABILITY	  	58
			
	 Section 14.5
	  	APPLICABLE LAW	  	58
			
	 Section 14.6
	  	CAPTIONS	  	59
			
	 Section 14.7
	  	TIME OF THE ESSENCE	  	59
			
	 Section 14.8
	  	NO MERGER	  	59
			
	 Section 14.9
	  	NO MODIFICATIONS	  	60

  

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 DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING 

DEFINED TERMS 

Execution Date: May 5, 2010 

Note: A promissory note made by Trustor dated as of the Execution Date, to the order of Metropolitan Life Insurance Company in the principal
amount of $220,000,000.00 
 Beneficiary & Address: 

Metropolitan Life Insurance Company, 
 a New
York corporation (“MetLife”) 
 Metropolitan Life Insurance Company, a New York corporation 

10 Park Avenue 
 Morristown, New Jersey 07962

 Attention: Senior Vice President 

Real Estate Investments 
 and:

 Metropolitan Life Insurance Company 

125 South Wacker Drive, Suite 1100 
 Chicago,
Illinois 60606-4478 
 Attention: Director 

and: 
 Metropolitan Life Insurance
Company 
 425 Market Street, Suite 1050 

San Francisco, CA 94110 
 Attn: Director

 Trustor & Address: 

SHR St. Francis, L.L.C. 

200 West Madison Street, Suite 1700 

Chicago, Illinois 60606 

with a copy to: 

Perkins Coie LLP 

131 South Dearborn Avenue, Suite 1700 

Chicago, Illinois 60603 

Attn: Bruce A. Bonjour 
  

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	 Trustee & Address:
  

Fidelity National Title Insurance Company
 50
California Street
 San Francisco, CA
  

	 Liable Party & Address:
  

Strategic Hotel Funding, L.L.C., a Delaware limited liability company, and its successors and assigns as and to the extent permitted under the Guaranty

  
 200 West Madison Street, Suite 1700

Chicago, Illinois 60606
  

with a copy to:
  

Perkins Coie LLP
 131 South Dearborn Avenue,
Suite 1700
 Chicago, Illinois 60603

Attn: Bruce A. Bonjour
  

	 Operating Lessee & Address:
  

DTRS St. Francis, L.L.C.
 200 West Madison
Street, Suite 1700
 Chicago, Illinois 60606
  

with a copy to:
  

Perkins Coie LLP
 131 South Dearborn Avenue,
Suite 1700
 Chicago, Illinois 60603

Attn: Bruce A. Bonjour
  

	 Affiliated Guarantor & Address:
  

SHC Columbus Drive, LLC,
 200 West Madison
Street, Suite 1700
 Chicago, Illinois 60606
  

with a copy to:
  

Perkins Coie LLP
 131 South Dearborn Avenue,
Suite 1700
 Chicago, Illinois 60603

Attn: Bruce A. Bonjour

  

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	 Property: The St. Francis Hotel located at 335 Powell Street, San Francisco, California consisting of 1,195 guest rooms,
including approximately 40,035 square feet of retail space and parking garage.
  

County: San Francisco County
  

State: California
  

	Use: Hotel, retail and related uses
	  
 Insurance:

 
 Commercial General Liability Required Liability Limits
—$50,000,000.00
  
 Auto Liability: $1,000,000.00 owned/hired/non-owned

  
 Address for Insurance Notification:

 
 Metropolitan Life Insurance Company

Its affiliates and/or successors and assigns

10 Park Avenue

Morristown, New Jersey, 07962

Attention: Real Estate Investments Insurance Risk Manager

 

	Loan Documents: The Note, this Deed of Trust and any other documents related to the Note and/or this Deed of Trust and all renewals, amendments, modifications, restatements
and extensions of these documents, except the Indemnity Agreement and the Guaranty. Indemnity Agreement: Unsecured Indemnity Agreement dated as of the Execution Date and executed by Trustor and Liable Party in favor of Beneficiary.
Guaranty: Guaranty dated as of the Execution Date and executed by Liable Party in favor of Beneficiary. Trustor Guaranty: Trustor Guaranty shall have the meaning ascribed in Section 10.1 of the Deed of Trust. Subordinate Deed of
Trust shall have the meaning ascribed in Section 10.1 of the Deed of Trust. Affiliated Guaranty: Affiliated Guaranty dated as of the Execution Date and executed by Affiliated Guarantor in favor of Beneficiary. Affiliated Guarantor
Subordinate Mortgage: The Mortgage, Security Agreement and Fixture Filing executed by Affiliated Guarantor to secure the obligations under the Affiliated Guaranty for the benefit of Beneficiary and encumbering the property and other improvements
located at 200 North Columbus Drive, Chicago, Illinois, and more particularly described therein. The Unsecured Indemnity Agreement, the Guaranty, the Affiliated Guaranty and the Affiliated Guarantor Subordinate Mortgage are not Loan Documents and
shall survive repayment of the Loan or other termination of the Loan Documents as and to the extent provided therein.

  

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 This DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING (this “Deed of Trust”)
is entered into as of the Execution Date by Trustor and Operating Lessee to Trustee for the benefit of Beneficiary with reference to the following Recitals: 

RECITALS 

A. This Deed of Trust secures: (1) the payment of the indebtedness evidenced by the Note with interest at the rates set forth in the
Note, together with all renewals, modifications, consolidations and extensions of the Note, all additional advances or fundings made by Beneficiary, and any other amounts required to be paid by Trustor under any of the Loan Documents, (collectively,
the “Secured Indebtedness”, and sometimes referred to as the “Loan”) and (2) the full performance by Trustor and/or Operating Lessee as applicable of all of the terms, covenants and obligations set forth in any of the Loan
Documents. The stated Maturity Date of the Loan is June 1, 2017. 
 B. Trustor makes the following covenants and agreements
for the benefit of Beneficiary or any party designated by Beneficiary, including any prospective purchaser of the Loan Documents or participant in the Loan, and their respective officers, employees, agents, attorneys, representatives and contractors
(all of which are collectively referred to as, “Beneficiary”) and Trustee. 
 C. Operating Lessee is executing this
Deed of Trust for the purpose of (i) confirming and agreeing to be bound by the representations, warranties, covenants and agreements of Operating Lessee herein and (ii) confirming the Grant of Security by Operating Lessee in Article I of
this Deed of Trust. 
 NOW, THEREFORE, IN CONSIDERATION of the Recitals and for other good and valuable consideration, the
receipt and sufficiency of which are acknowledged, Trustor agrees as follows: 
 ARTICLE I 

GRANT OF SECURITY 

Section 1.1 REAL PROPERTY GRANT. Trustor and/or Operating Lessee as applicable, irrevocably sells, transfers, grants,
conveys, assigns and warrants to Beneficiary and Trustee, its successors and assigns, in trust, with power of sale and right of entry and possession, all of Trustor’s and Operating Lessee’s present and future estate, right, title and
interest in and to the following which are collectively referred to as the “Real Property”: 
 (1) that certain real
property located in the County and State which is more particularly described in Exhibit “A” attached to this Deed of Trust or any portion of the real property; all easements, rights-of-way, gaps, strips and gores of land;
streets and alleys; sewers and water rights; privileges, licenses, tenements, and appurtenances appertaining to the real property, and the reversion(s), remainder(s), and claims of Trustor and/or Operating Lessee as applicable with respect to these
items, and the benefits of any existing or future conditions, covenants and restrictions affecting the real property (collectively, the “Land”); 
  

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 (2) all things now or hereafter affixed to or placed on the Land, including all buildings,
structures and improvements, all Fixtures (as defined below) and all machinery, elevators, boilers, building service equipment (including, without limitation, all equipment for the generation or distribution of air, water, heat, electricity, light,
fuel or for ventilating or air conditioning purposes or for sanitary or drainage purposes or for the removal of dust, refuse or garbage), partitions, appliances, furniture, furnishings, building materials, supplies, computers and software,
restaurant equipment, window coverings and floor coverings, lobby furnishings, and other property now or in the future attached, or installed in the improvements and all replacements, repairs, additions, or substitutions to these items
(collectively, the “Improvements”); 
 (3) all equipment, machinery, fixtures, and other items of property required
for or incidental to the use of the Property as a hotel, including all components thereof, now or hereafter permanently affixed to or incorporated into the Improvements, including, without limitation, all furnaces, boilers, heaters, electrical
equipment, heating, plumbing, lighting, ventilating, refrigerating, incineration, air and water pollution control, waste disposal, air-cooling and air-conditioning systems and apparatus, sprinkler systems and fire and theft protection equipment, all
of which to the greatest extent permitted by law are hereby deemed by the parties hereto to constitute real estate, together with all replacements, modifications, alterations and additions thereto (collectively, the “Fixtures”);

 (4) all present and future income, rents, revenue, profits, proceeds, hotel room income, and income of any kind derived
directly or indirectly by Trustor, or Operating Lessee from or in connection with the Property, (including, without limitation, all revenues from (w) rentals or other payments from hotel guests, tenants, lessees, licensees or concessionaires
whether on a cash basis or credit, paid or collected, and (x) the sale of food and beverages that are prepared at the Property and sold or delivered on or off the Property (including, without limitation, revenues from mini-bars), whether for
cash or for credit, including in respect of guest rooms, banquet rooms, meeting rooms and other similar rooms and (y) gross revenue from the rental of banquet, meeting and other similar rooms, and (z) parking income and revenues), and all
other benefits from the Land and/or Improvements and all deposits made with respect to the Land and/or Improvements, including, but not limited to, any security given to utility companies by Trustor and/or Operating Lessee as applicable, any advance
payment of real estate taxes or assessments, or insurance premiums made by Trustor and/or Operating Lessee as applicable and all claims or demands relating to such deposits and other security, including claims for refunds of tax payments or
assessments, and all insurance proceeds payable to Trustor and/or Operating Lessee as applicable in connection with the Land and/or Improvements whether or not such insurance coverage is specifically required under the terms of this Deed of Trust
(“Insurance Proceeds”) (all of the items set forth in this paragraph are referred to collectively as “Rents and Profits”); 

(5) all rights of Trustor and/or Operating Lessee as applicable under that certain agreement dated as of August 21, 1986, between
Trustor’s predecessor in interest and Westin Hotel Company (together with St. Francis Hotel Corporation, its successor by assignment, the “Manager”), as amended by that certain First Amendment to Amended and Restated Management
Agreement, dated as of June 2, 1994, as further amended by that certain Second Amendment to Amended and Restated Management Agreement, dated as of September 1, 

 

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1999, as further amended by that certain Amended and Restated Second Amendment to Amended and Restated Management Agreement dated as of April 25, 2000, that certain Third Amendment to Hotel
Operator Agreement dated July 2, 2008, that certain Fourth Amendment to Hotel Operator Agreement dated January 1, 2010 and that certain Fifth Amendment to Management Agreement dated May     , 2010, as assigned to
Manager pursuant to that certain Assignment and Assumption of Management Agreements, dated as of December 31, 1997, as assigned to another predecessor to Operating Lessee pursuant to that certain Assignment and Assumption of Management
agreement dated as of April 26, 2000, and as further assigned to Operating Lessee pursuant to an Assignment and Assumption of Contracts dated as of June 1, 2006 (as so amended and assigned, or further amended, modified, renewed, extended
or substituted from time to time, the “Management Agreement”). 
 (6) all rights of Trustor under that certain
Operating Lease dated June 1, 2006, between Trustor and DTRS St. Francis, L.L.C., a Delaware limited liability company (“Operating Lessee”), as hereafter amended or supplemented (the “Operating Lease”). 

(7) all rights of Trustor under that certain Owner Agreement dated June 1, 2006, between Trustor, Operating Lessee and Manager, as
hereafter amended or supplemented (the “Owner Agreement”). 
 (8) all rights of Trustor or Operating Lessee in and to
accounts receivables, arising from the operation of the Property, to payment for goods sold or leased, for services rendered, or for the rental or use of the Property, whether or not yet earned by performance, including, without limiting the
generality of the foregoing, (i) all accounts arising from the operation of the Property, and (ii) all rights to payment from any consumer credit or charge card organization or entity (such as or similar to the organizations or entities
which sponsor and administer the American Express Card, the Visa Card, the Carte Blanche Card and the Master Card). Accounts Receivable shall include all of the foregoing rights to payment, whether now existing or hereafter created, and all
substitutions therefor, proceeds thereof (whether cash or non-cash, movable or immovable, tangible or intangible) received upon the sale, exchange, transfer, collection or other disposition thereof or substitution therefor, and all of the proceeds
from all of the foregoing, subject however to the rights of Manager under the Management Agreement; 
 (9) all damages,
payments and revenue of every kind that Trustor and/or Operating Lessee as applicable may be entitled to receive, from any person owning or acquiring a right to the oil, gas or mineral rights and reservations of the Land; 

(10) all proceeds and claims arising on account of any damage to, or Condemnation (as hereinafter defined) of any part of the Land
and/or Improvements, and all causes of action and recoveries for any diminution in the value of the Land and/or Improvements; 

(11) all authorizations, licenses and permits, including without limitation, operating permits, liquor licenses and all other
authorizations or permits necessary or appropriate for the Improvements to be fully operated as a first-class hotel (“Hotel Licenses and Permits”); 
  

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 (12) all, guaranties, warranties, franchise agreements, permits, or certificates relating
to the ownership, use, operation or maintenance of the Land and/or Improvements; and 
 (13) all names by which the Land and/or
Improvements may be operated or known, and all rights to carry on business under those names, and all trademarks, trade names, and goodwill relating to the Land and/or Improvements. 

TO HAVE AND TO HOLD the Real Property, unto Trustee, its successors and assigns, in trust, for the benefit of Beneficiary, its successors and assigns,
forever subject to the terms, covenants and conditions of this Deed of Trust. 
 Section 1.2 PERSONAL PROPERTY
GRANT. Trustor irrevocably sells, transfers, grants, conveys, assigns and warrants to Beneficiary, its successors and assigns, a security interest in Trustor’s interest, and to the extent permissible under the Operating Lease and the Owner
Agreement, Operating Lessee’s interest, in the following personal property which is collectively referred to as “Personal Property”: 

(1) any portion of the Real Property which may be personal property, and all other personal property, whether now existing or acquired
in the future which is attached to, appurtenant to, or used in the construction or operation of, or in connection with, the Real Property; 

(2) all rights to the use of water, including water rights appurtenant to the Real Property, pumping plants, ditches for irrigation, all
water stock or other evidence of ownership of any part of the Real Property that is owned by Trustor and/or Operating Lessee as applicable in common with others and all documents of membership in any owner’s association or similar group;

 (3) all plans and specifications prepared for construction of the Improvements; and all contracts and agreements of Trustor
and/or Operating Lessee as applicable relating to the plans and specifications or to the construction of the Improvements; 

(4) all furniture, fixtures and equipment and other items of property located on or used in connection with the Real Property or its
occupancy or operation, including all furniture, furnishings, wall coverings, fixtures and hotel equipment and systems located at, or used in connection with, the operation of the Property as a Hotel, together with all replacements therefor and
additions thereto, including, without limitation, (i) all equipment and systems required for the operation of kitchens and bars, if any, laundry and dry cleaning facilities, (ii) office equipment, (iii) dining room wagons, materials
handling equipment, cleaning and engineering equipment, (iv) telephone and computerized accounting systems, (v) vehicles and (vi) and any other items customarily included within “property and equipment” for hotel properties
similar to the Property (“FF&E”); 
 (5) all, general intangibles, letter of credit rights, commercial tort
claims, deposit accounts, documents, instruments and chattel paper and all substitutions, replacements of, and additions to, any of the these items; 
  

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 (6) all rights of Trustor and Operating Lessee in and to the Hotel Operating Account, the
Fund for Replacement of and Additions to Furnishings and Equipment and any and all other accounts held by Manager pursuant to the terms of the Management Agreement for the benefit of Trustor and/or Operating Lessee; 

(7) all rights of Trustor and/or Operating Lessee, as applicable, in and to that certain bank account into which all payments and
distributions from Manager to Trustor and/or Operating Lessee are made, which is held by Bank of America, N.A. (“Bank”) pursuant to a Deposit Account Control Agreement (“DAC Agreement”) entered into or which will be entered into
by and between Bank, Trustor, Operating Lessee and Beneficiary (the “Proceeds Deposit Account”) 
 (8) all rights of
Trustor and/or Operating Lessee, as applicable, in and to the DS Account (as defined in Section 2.12) and the DS Funds (as defined in Section 2.12). 

(9) all sales agreements, deposits, escrow agreements, other documents and agreements entered into with respect to the sale of any part
of the Real Property, and all proceeds of the sale; and 
 (10) all proceeds from the voluntary or involuntary disposition or
claim respecting any of the foregoing items (including judgments, condemnation awards or otherwise). 
 All of the Real Property and the
Personal Property are collectively referred to as the “Property.” 
 Section 1.3 CONDITIONS TO GRANT. If
Trustor shall pay to Beneficiary the Secured Indebtedness, at the times and in the manner stipulated in the Loan Documents, and if Trustor and/or Operating Lessee as applicable shall perform and observe each of the terms, covenants and agreements
set forth in the Loan Documents, then this Deed of Trust and all the rights granted by this Deed of Trust shall be released by Trustee and/or Beneficiary in accordance with the laws of the State. 

ARTICLE II 

TRUSTOR COVENANTS 

Section 2.1 DUE AUTHORIZATION, EXECUTION, AND DELIVERY. 

(a) Trustor represents and warrants that the execution of the Loan Documents and the Indemnity Agreement have been duly authorized and
there is no provision in the organizational documents of Trustor requiring further consent for such action by any other entity or person. 

(b) Trustor represents and warrants that it is duly organized, validly existing and is in good standing under the laws of the state of
its formation and in the State, that it has all necessary licenses, authorizations, registrations, permits and/or approvals to own its properties and to carry on its business as presently conducted. 

 

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 (c) Trustor represents and warrants that the execution, delivery and performance of the Loan
Documents will not result in Trustor’s being in default under any provision of its organizational documents or of any deed of trust, mortgage, lease, credit or other agreement to which it is a party or which affects it or the Property,
including without limitation, the Revolver Loan (as defined in Section 10.4). 
 (d) Trustor represents and warrants that
the Loan Documents and the Indemnity Agreement have been duly authorized, executed and delivered by Trustor and constitute valid and binding obligations of Trustor which are enforceable in accordance with their terms. 

Section 2.2 PERFORMANCE BY TRUSTOR; HOTEL LICENSES AND PERMITS . 

(a) Trustor shall pay the Secured Indebtedness to Beneficiary and shall keep and perform each and every other obligation, covenant and
agreement of the Loan Documents. 
 (b) Trustor represents and warrants that the Hotel Licenses and Permits necessary or
appropriate for the Improvements to be fully operated as a first-class hotel shall have been validly obtained, paid for and be in full force and effect. 

Section 2.3 WARRANTY OF TITLE TO REAL PROPERTY AND FF&E . 

(a) Trustor warrants that it holds marketable and indefeasible fee simple absolute title to the Real Property, and that it has the right
and is lawfully authorized to sell, convey or encumber the Property subject only to those property specific exceptions to title recorded in the real estate records of the County and contained in Schedule B-1 and B-2 of the title insurance policy or
policies which have been approved by Beneficiary (the “Permitted Exceptions”). The Property is free from all due and unpaid taxes, assessments and mechanics’ and materialmen’s liens. 

(b) All FF&E have been paid for in full and there are no leases or encumbrances, or security interests on any of the FF&E except
for that certain (i) Revenue and Sharing Agreement dated December 8, 2005 by and between BRE/ST. Francis L.L.C. and Minibar North America, Inc., as amended by Addendum to Revenue Sharing Agreement dated February 10, 2006 and
(ii) Licensing and Maintenance Agreement dated December 8, 2005 by and between BRE/ST. Francis L.L.C. and Minibar North America, Inc., and (iii) Managed Servcies Order #7021845-001 by and between DTRS/St Francis LLC and Xerox, Inc.,
dated August 20, 2008, as amended (collectively, the “Equipment Leases”). 
 (c) The Equipment Leases are in full
force and effect, there are no monetary or other defaults by Manager, Trustor or Operating Lessee thereunder. 
 (d) Trustor
further covenants to warrant and forever defend Beneficiary and Trustee from and against all persons claiming any interest in the Property. 
  

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 Section 2.4 TAXES, LIENS AND OTHER CHARGES. 

(a) Unless otherwise paid to Beneficiary as provided in Section 2.5, Trustor and/or Operating Lessee as applicable shall pay all real
estate and other taxes and assessments which may be payable, assessed, levied, imposed upon or become a lien on or against any portion of the Property (all of the foregoing items are collectively referred to as the “Imposition(s)”). The
Impositions shall be paid not later than the dates on which the particular Imposition would become delinquent and Trustor shall produce to Beneficiary receipts of the imposing authority, or other evidence reasonably satisfactory to Beneficiary,
evidencing the payment of the Imposition in full. If Trustor and/or Operating Lessee as applicable elects by appropriate legal action to contest any Imposition, Trustor shall first deposit cash (or other security approved by Beneficiary such as a
bond or letter of credit) with Beneficiary as a reserve in an amount which Beneficiary determines is sufficient to pay the Imposition plus all fines, interest, penalties and costs which may become due pending the determination of the contest. If
Trustor deposits this sum or alternative security with Beneficiary, Trustor shall not be required to pay the Imposition provided that enforcement or collection of the Imposition, or the sale or forfeiture of, the Property is prevented during such
contest and such contest is prosecuted with due diligence and continuity. Upon termination of any proceeding or contest and any appeal thereof, Trustor shall pay the amount of the Imposition as finally determined in the proceeding or contest.
Provided that there is not then an Event of Default (as defined in Section 11.1), the monies or alternative security which have been deposited with Beneficiary pursuant to this Section shall be applied toward such payment and the excess, if
any, shall be returned to Trustor. 
 (b) In the event of the passage, after the Execution Date, of any law which deducts from
the value of the Property, for the purposes of taxation, any lien or security interest encumbering the Property, or changing in any way the existing laws regarding the taxation of mortgages, deeds of trust and/or security agreements or debts secured
by these instruments, or changing the manner for the collection of any such taxes, and the law has the effect of imposing payment of any Impositions upon Beneficiary, at Beneficiary’s option, the Secured Indebtedness may be declared by
Beneficiary to immediately become due and payable. Notwithstanding the preceding sentence, the Beneficiary’s election to accelerate the Loan shall not be effective if (1) Trustor and/or Operating Lessee as applicable is permitted by law
(including, without limitation, applicable interest rate laws) to, and actually does, pay the Imposition or the increased portion of the Imposition and (2) Trustor agrees in writing to pay or reimburse Beneficiary in accordance with
Section 11.6 for the payment of any such Imposition which becomes payable at any time when the Loan is outstanding. 

Section 2.5 ESCROW DEPOSITS. 

(a) Without limiting the effect of Section 2.4 and Section 3.1, subject to (b) and (c) below, Trustor shall pay to
Beneficiary monthly on the same date the monthly installment is payable under the Note, an amount equal to 1/12th of the amounts Beneficiary reasonably estimates are necessary to pay, on an annualized basis, (1) all Impositions and (2) the
premiums for the insurance policies required under this Deed of Trust (collectively the “Premiums”) until such time as Trustor has deposited an amount equal to the annual charges for these items and on demand, from time to time, shall pay
to Beneficiary any additional amounts necessary to pay the Premiums and Impositions. Trustor will furnish to Beneficiary bills for Impositions and 

 

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Premiums thirty (30) days before Impositions become delinquent and such Premiums become due for payment. No amounts paid as Impositions or Premiums shall be deemed to be trust funds and
these funds may be commingled with the general funds of Beneficiary. Beneficiary shall not pay Trustor interest on account of these funds. If an Event of Default occurs, Beneficiary shall have the right, at its election, to apply any amounts held
under this Section 2.5 in reduction of the Secured Indebtedness, or in payment of the Premiums or Impositions for which the amounts were deposited. 

(b) Notwithstanding the foregoing, if (i) the insurance required to be maintained hereunder is provided under a blanket policy
approved by Beneficiary, or (ii) Trustor, Operating Lessee or Manager pay, reserve or set aside funds on a monthly basis in amounts sufficient to provide for the payment of all Premiums when due (and such funds need not be segregated or
deposited into a specific fund or account), Beneficiary agrees not to require these deposits unless and until (a) there has occurred an Event of Default under the Loan Documents, the Guaranty, the Affiliated Guaranty or the Indemnity Agreement,
(b) Trustor no longer owns the Property; (c) except as and to the extent expressly permitted under Article X, there has been a change in the general partners, stockholders or members of Trustor or in the constituent general partners or
controlling shareholders or controlling members of any of the entities comprising Trustor; (d) such deposits are required in connection with a securitization or participation of the Loan; or, (e) at any time Trustor fails to furnish to
Beneficiary, not later than fifteen (15) days after the dates on which any Premiums would become delinquent, receipts for the payment of such Premiums or appropriate proof of issuance of a new policy which continues in force the insurance
coverage of the expiring policy. In the event any of these events described in clauses (a) through (e) occur, unless Beneficiary agrees to an alternative arrangement directly with the independent third party manager of the Property,
Beneficiary reserves the right to require Premiums deposits at any time in its absolute discretion notwithstanding the fact that the default may be cured, or that the transfer or change be approved by Beneficiary. 

(c) Notwithstanding the foregoing, so long as Trustor Operating Lessee or Manager pay, reserve or set aside funds on a monthly basis in
amounts sufficient to provide for the payment of all Impositions as and when due (which funds need not be segregated or deposited into a specific fund or account), Beneficiary agrees not to require these deposits unless and until (a) there has
occurred an Event of Default under the Loan Documents, the Guaranty, the Affiliated Guaranty or the Indemnity Agreement, (b) Trustor no longer owns the Property; or (c) such deposits are required in connection with a securitization or
participation of the Loan; or (d) except as and to the extent expressly permitted under Article X, there has been a change in the general partners, stockholders or members of Trustor or in the constituent general partners or controlling
shareholders or controlling members of any of the entities comprising Trustor. In the event any of these events described in clauses (a) through (d) occur, unless Beneficiary agrees to an alternative arrangement directly with the
independent third party manager of the Property, Beneficiary reserves the right to require Impositions deposits at any time in its absolute discretion notwithstanding the fact that the default may be cured, or that the transfer or change be approved
by Beneficiary. 
  

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 Section 2.6 CARE AND USE OF THE PROPERTY. 

(a) Trustor represents and warrants to Beneficiary as follows: 

(i) All authorizations, licenses, including without limitation liquor licenses, if any, and operating permits required to allow the
Improvements to be operated for the Use have been obtained, paid for and are in full force and effect. 
 (ii) The Improvements
and their Use comply with (and no notices of violation have been received in connection with) all Requirements (as defined in this Section) and Trustor and/or Operating Lessee as applicable shall at all times comply with all present or future
Requirements affecting or relating to the Property and/or the Use. Trustor shall furnish Beneficiary, on request, proof of compliance with the Requirements. Trustor and/or Operating Lessee as applicable shall not use or permit the use of the
Property, or any part thereof, for any illegal purpose. “Requirements” shall mean all laws, ordinances, orders, covenants, conditions and restrictions and other requirements relating to land and building design and construction, use and
maintenance, that may now or hereafter pertain to or affect the Property or any part of the Property or the Use, including, without limitation, planning, zoning, subdivision, environmental, air quality, flood hazard, fire safety, handicapped
facilities, building, health, fire, traffic, safety, wetlands, coastal and other governmental or regulatory rules, laws, ordinances, statutes, codes and requirements applicable to the Property, including permits, licenses and/or certificates that
may be necessary from time to time to comply with any of the these requirements. 
 (iii) Trustor has complied with all
requirements of all instruments and agreements affecting the Property, whether or not of record, including without limitation all covenants and agreements by and between Trustor and any governmental or regulatory agency pertaining to the
development, use or operation of the Property. Trustor and/or Operating Lessee as applicable, at its sole cost and expense, shall keep the Property in good order, condition, and repair, and make all necessary structural and non-structural, ordinary
and extraordinary repairs to the Property and the Improvements. 
 (iv) Trustor and/or Operating Lessee as applicable shall
abstain from, and not permit, the commission of waste to the Property and shall not remove or alter in any substantial manner, the structure or character of any Improvements without the prior written consent of Beneficiary. 

(v) The zoning approval for the Property is not dependent upon the ownership or use of any property which is not encumbered by this Deed
of Trust. 
 (vi) Construction of the Improvements on the Property is complete. 

(vii) The Property is in good repair and condition, free of any material damage. 

(b) Beneficiary shall have the right, at any time and from time to time during normal business hours, to enter the Property in order to
ascertain Trustor and/or Operating Lessee as applicable’s compliance with the Loan Documents, to examine the condition of the Property, to perform an appraisal, to undertake surveying or engineering work, and to inspect

  

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premises occupied by tenants. Trustor and/or Operating Lessee as applicable shall cooperate with Beneficiary performing these inspections. Beneficiary’s rights hereunder include its rights
under California Civil Code Section 2929.5, as such Section may be amended from time to time. Trustor shall pay all costs incurred by Beneficiary in connection with any such inspections, except as may otherwise be provided in such
Section 2929.5. 
 (c) Trustor and/or Operating Lessee as applicable shall use, or cause to be used, the Property
continuously for the Use. Trustor and/or Operating Lessee as applicable shall not use, or permit the use of, the Property for any other use without the prior written consent of Beneficiary. Trustor and/or Operating Lessee as applicable shall not
file or record a declaration of condominium, master deed of trust or mortgage or any other similar document evidencing the imposition of a so-called “condominium regime” whether superior or subordinate to this Deed of Trust and Trustor
and/or Operating Lessee as applicable shall not permit any part of the Property to be converted to, or operated as, a “cooperative apartment house” whereby the tenants or occupants participate in the ownership, management or control of any
part of the Property. 
 (d) Without the prior written consent of Beneficiary, Trustor and/or Operating Lessee as applicable
shall not (i) initiate or acquiesce in a change in the zoning classification of and/or restrictive covenants affecting the Property or seek any variance under existing zoning ordinances, (ii) use or permit the use of the Property in a
manner which may result in the Use becoming a non-conforming use under applicable zoning ordinances, or (iii) subject the Property to restrictive covenants. 

Section 2.7 COLLATERAL SECURITY INSTRUMENTS. Trustor covenants and agrees that if Beneficiary at any time holds additional
security for any obligations secured by this Deed of Trust, it may enforce its rights and remedies with respect to the security, at its option, either before, concurrently or after a sale of the Property is made pursuant to the terms of this Deed of
Trust. Beneficiary may apply the proceeds of the additional security to the Secured Indebtedness without affecting or waiving any right to any other security, including the security under this Deed of Trust, and without waiving any breach or default
of Trustor under this Deed of Trust or any other Loan Document. 
 Section 2.8 MANAGEMENT AGREEMENT. 

(a) As of the Execution Date, the Management Agreement shall be in full force and effect and Manager shall have no defenses or claims
against Trustor with respect thereto. Any new or subsequent agreements providing for the management and operation of the Westin St. Francis Hotel shall be subject to Beneficiary’s approval 

(b) The Management Agreement shall be subordinated to the lien of the Deed of Trust pursuant to an Assignment and Subordination of
Management Agreement and Consent of Manager dated as of the date of this Deed of Trust, and further shall be assigned to Beneficiary as additional security for the Loan. 

(c) Notwithstanding any provision to the contrary contained herein or in the other Loan Documents, the Trustor and Operating Lessee may
not amend, modify, supplement, alter or waive any right under the Management Agreement without the written consent of 

 

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Beneficiary, provided however, without any requirement for consent, Trustor and Operating Lessee may agree to any nonmaterial modification, change, supplement, alteration or amendment to the
Management Agreement and waiver of any nonmaterial rights thereunder, including without limitation, any such modification, change, supplement, alteration, amendment or waiver that does not affect the cash management procedures set forth in the
Management Agreement or the Loan Documents, decrease the cash flow of the Property, adversely affect the marketability of the Property, change the definitions of “default” or “event of default,” change the definitions of
“operating expense” or words of similar meaning to add additional items to or delete items from such definitions, change the definitions of “owner’s distribution” or “owner’s equity” or words of similar
meaning so as to reduce the payments due the Trustor thereunder, change the definition of “debt service amount” or “owner indebtedness”, change the definition of “net cash flow” or “net operating cash flow”,
change the timing of remittances to the Trustor or Operating Lessee thereunder, change the priority of distributions of “net cash flow” to Trustor or Operating Lessee thereunder, increase or decrease reserve requirements, change the term
of the Management Agreement or increase any Management Fees (as defined in the Management Agreement) payable under such Management Agreement. 

(d) Trustor or Operating Lessee may not enter into a new Management Agreement unless approved by Beneficiary in its sole and absolute
discretion. 
 Section 2.9 FF&E. If any future acquisition of FF&E is leased, Beneficiary shall have the
right to consent to such leasing. If Beneficiary consents to such leasing, Beneficiary shall have the right to approve the terms of any leases and to receive an assignment of the tenant’s interest in any leased equipment. Beneficiary shall also
receive from the lessor (provided lessor is an entity unaffiliated with Beneficiary and its affiliates) of such equipment (i) an estoppel certificate reflecting the lease agreement and the defaults, if any, of Trustor under the lease agreement,
and (ii) an agreement providing that if Beneficiary shall ever become the owner of the Real Property, such lessor’s lease, at Beneficiary’s option, may be assumed by Beneficiary at the same rental charges, and under the same terms and
conditions as are presently contained in such lease. Any lease referred to in this section shall be subject to Beneficiary’s prior written approval. 

Section 2.10 SUITS AND OTHER ACTS TO PROTECT THE PROPERTY. 

(a) Trustor and/or Operating Lessee as applicable shall immediately notify Beneficiary of the commencement, or receipt of notice, of any
and all actions or proceedings or other material matter or claim affecting the Property and/or the interest of Beneficiary under the Loan Documents (collectively, “Actions”). Trustor and/or Operating Lessee as applicable shall appear in
and defend any Actions. 
 (b) Beneficiary shall have the right, at the cost and expense of Trustor, to institute, maintain and
participate in Actions or other proceedings and take such other action, as it may deem appropriate in the good faith exercise of its discretion to preserve or protect the Property and/or the interest of Beneficiary under the Loan Documents. Any
money paid by Beneficiary under this Section shall be reimbursed to Beneficiary in accordance with Section 11.6 hereof. 
  

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 Section 2.11 LIENS AND ENCUMBRANCES. Except as and to the extent expressly set
forth in Article X to the contrary, without the prior written consent of Beneficiary, to be exercised in Beneficiary’s sole and absolute discretion, other than the Permitted Exceptions, Trustor and/or Operating Lessee as applicable shall not
create, place or allow to remain any lien or encumbrance on the Property, including deeds of trust, mortgages, security interests, conditional sales, mechanic liens, tax liens or assessment liens regardless of whether or not they are subordinate to
the lien created by this Deed of Trust (collectively, “Liens and Encumbrances”). If any Liens and Encumbrances are recorded against the Property or any part of the Property, Trustor and/or Operating Lessee as applicable shall obtain a
discharge and release of any Liens and Encumbrances within fifteen (15) days after receipt of notice of their existence. 

Section 2.12 DEBT SERVICE RESERVE ACCOUNT. 

(a) As of the Execution Date, Liable Party has funded a debt service reserve account (the “DS Account”) in the amount of
$3,648,700.00 (the “DS Funds”) with Beneficiary’s servicer and a debt service account in the amount of $1,851,300.00 with Beneficiary’s servicer in connection with the Affiliated Guarantor Loan (as hereinafter defined in
Section 2.12 (e) below). 
 (b) Beneficiary may commingle the DS Account with other funds of Beneficiary. However,
Beneficiary shall pay interest on the DS Account at the monthly money market rate quoted by the “Bank Rate Monitor” national index as determined by Beneficiary. Beneficiary may use another rate quoted by the Bank Rate Monitor, instead of
such money market rate or another comparable national index in the event Beneficiary determines such other rate or index is more appropriate under the circumstances. Additionally, in the event the Bank Rate Monitor national index is no longer
published, then Beneficiary may select another comparable index. Trustor and Liable Party acknowledge and agree that all risk of loss with respect to the principal amount of such deposits shall be at the sole risk of Trustor and Liable Party.

 (c) Provided that there is no pending Event of Default under the Loan Documents or event with the giving of notice or the
passage of time would be an Event of Default, in the event that operating income from the Property is not sufficient to pay Trustor’s obligations to pay installments of principal and interest under the Loan (“Debt Service Shortfall”),
provided that Trustor submits evidence, satisfactory to Beneficiary in its sole discretion, that there is a Debt Service Shortfall, Trustor shall be permitted to direct Beneficiary to apply the DS Funds to the payment of Debt Service Shortfalls.

 (d) In the event any DS Funds are disbursed from the DS Account as provided above, then the Liable Party shall be required
pursuant to the terms of the Guaranty to replace such withdrawn funds into the DS Account no later than 90 days after the date of any disbursements (“Liable Party Reimbursement Obligation”). The failure of Liable Party to replace such
funds into the DS Account within such 90 day period shall be an Event of Default under the Guaranty and under the Deed of Trust. 
  

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 (e) For the purpose of this Section, Affiliated Guarantor Loan shall mean that certain loan
made by Beneficiary to Affiliated Guarantor, which loan is evidenced by a Promissory Note dated as of the Execution Date in the amount of $97,750,000.00 executed by Affiliated Guarantor in favor of Beneficiary (“Affiliated Guarantor
Note”), the repayment of which is secured by, among other documents, a Mortgage, Security Agreement and Fixture Filing encumbering the property and improvements located at 200 North Columbus Drive, Chicago, Illinois and more particularly
described therein (the “Affiliated Guarantor Property”). Trustor acknowledges and agrees that it has received a copy of the Promissory Note and Mortgage, Security Agreement and Fixture Filing for the Affiliated Guarantor Loan
(“Affiliated Guarantor Mortgage”) and the other loan documents for the Affiliated Guarantor Loan (the “Affiliated Guarantor Loan Documents”). 

(f) Provided that there is then no pending Event of Default under the Loan Documents or under the Guaranty, Liable Party may, from time
to time, request Beneficiary to transfer funds in the DS Account to pay Debt Service Shortfalls (as defined in the Affiliated Guarantor Mortgage) (“DS Funds Transfer”); provided, however that the amount of the DS Funds Transfer shall be
subject to the Liable Party Reimbursement Obligation as more particularly set forth in Section 2.12(c). 
 (g) If an Event
of Default occurs, Beneficiary shall have the right, at its election, to apply any amounts held under this Section 2.12 in reduction of the Secured Indebtedness, or in payment of the Premiums or Impositions. 

(h) Beneficiary shall release DS Funds to Liable Party (a “Release Event”) in the event that (i) (w) if after the
date which is eighteen months following the Advance Date (as defined in the Note), the “trailing” twelve-month net operating income (“NOI”) for the Property reaches $28,300,000.00, as determined by Beneficiary in its sole and
absolute discretion and (x) if a Release Event occurs under the Affiliated Guarantor Loan or if the Affiliated Guarantor Loan has been satisfied in full; or (ii) (y) if after the date which is thirty-six months following the Advance
Date the “trailing” twelve-month NOI for the Property reaches $23,600,000.00 as determined by Beneficiary in its sole and absolute discretion and (z) if a Release Event occurs under the Affiliated Guarantor Loan or if the Affiliated
Guarantor Loan has been satisfied in full; or (iii) if after the date which is eighteen months following the Advance Date, the “trailing” twelve-month net operating income (“NOI”) for the Property and the Affiliated
Guarantor Property reaches $40,800,000.00, as determined by Beneficiary in its sole and absolute discretion; or (iv) if after the date which is thirty-six months following the Advance Date the “trailing” twelve-month NOI for the
Property and the Affiliated Guarantor Property reaches $34,000,000.00, as determined by Beneficiary in its sole and absolute discretion (each such occurrence, a “Release Threshold”). 

(i) If a Release Event occurs, the DS Account shall not be reinstated for the remaining term of the Loan even if the NOI is reduced below
the Release Threshold. 
 (j) Trustor agrees to protect and indemnify Beneficiary and to hold Beneficiary harmless from and
against any and all actions, suits, claims, demands, liabilities, losses, damages, obligations and costs and expenses (including litigation costs) arising from or in any way connected with the holding of the DS Account and the disbursement of any of
the DS 
  

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Account funds. Trustor covenants and agrees to pay any costs and expenses in connection with the establishment and administration of the DS Account, including, without limitation bank fees and
costs, and administration fees, costs and disbursements of Beneficiary’s servicer. 
 (k) Except as and to the extent
expressly set forth if this Section, the DS Account shall remain in place throughout the term of the Loan. 
 Section 2.13
PROCEEDS DEPOSIT ACCOUNT. 
 (a) On the Execution Date, Trustor and Operating Lessee have established the Proceeds Deposit
Account and have executed or will execute, together with Bank, the DAC Agreement. 
 (b) Prior to any distributions
to Trustor or Operating Lessee from the Proceeds Deposit Account, Bank shall fund the following obligations (i) all Impositions, as and to the extent not paid by Manager; (ii) all Premiums, as and to the extent not paid by
Manager, and (iii) all payments to Beneficiary under the Note, Deed of Trust and the other Loan Documents, including all payments of interest and principal and interest, as and when all payments under (i), (ii) and
(iii) above are due under the terms of the Loan Documents (“Required Payments”). Trustor and Operating Lessee shall have no right to withdraw funds or receive funds from the Proceeds Deposit Account until the Required
Payments have been made.
 (c) After all Required Payments for the preceding calendar month have been made by Bank, so long as
there is no Event of Default under Section 11.1(a) hereof, and no Event of Default under Section 11.1(a) of the Affiliated Guarantor Mortgage (a “Deposit Account Event of Default”) or any event which, with the passage of time,
would constitute an Event of Default under Section 11.1(a) hereof or under Section 11.1(a) of the Affiliated Guarantor Mortgage (a “Pending Deposit Account Event of Default”), the amounts in the Proceeds Deposit Account
shall be automatically distributed to Operating Lessee and Trustor; provided however that upon the occurrence of a Deposit Account Event of Default or Pending Deposit Account Event of Default under the Loan or the Affiliated Guarantor
Loan, Beneficiary shall have the right, in its sole and absolute discretion, subject to Section 2.13(c), to instruct Bank pursuant to the terms of the DAC Agreement to cease all further distributions from the Proceeds Deposit Account
to Trustor and/or Operating Lessee for the remainder of the term of the Loan; provided, however, the cross reference in this sentence to Section 11.1(a) of the Affiliated Guarantor Mortgage shall be disregarded if the
Affiliated Guarantor Property has been transferred pursuant to Section 10.3 of the Affiliated Guarantor Mortgage. 
 (d)
Notwithstanding the foregoing, if a Pending Deposit Account Event of Default is cured under the Loan or under the Affiliated Guarantor Loan prior to it becoming an Event of Default, then the amounts in the Proceeds Deposit Account shall again
be automatically released to each Operating Lessee and Trustor as and to the extent provided in subsection (c) above.
  

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 ARTICLE III 

INSURANCE 

Section 3.1 REQUIRED INSURANCE AND TERMS OF INSURANCE POLICIES. 

(a) During the term of this Deed of Trust, Trustor and Operating Lessee at its sole cost and expense shall provide or shall cause the
Manager under the Management Agreement to provide insurance policies and certificates of insurance satisfactory to Beneficiary and in such amounts, and with the types of coverage, exclusions and the companies underwriting these coverages as
hereinafter described. In no event shall such policies be terminated or otherwise allowed to lapse unless replaced with a policy complying with the requirements set forth in this Article III. Trustor shall be responsible for its own deductibles.
Trustor shall also pay for any insurance, or any increase of policy limits, not described in this Deed of Trust which Trustor requires for its own protection or for compliance with government statutes Trustor’s insurance shall be primary and
without contribution from any insurance procured by Beneficiary. 
 Policies of insurance shall comply with the following
requirements: 
 (1) Property insurance on the Improvements and the Personal Property insuring against any peril now or
hereafter included within the classification “All Risk” or “Special Perils,” in each case (i) in an amount equal to 100% of the “Full Replacement Cost” (as hereinafter defined) of the Improvements and Personal
Property with a waiver of depreciation and with a Replacement Cost Endorsement; (ii) containing an agreed amount endorsement with respect to the Improvements and Personal Property waiving all co-insurance provisions; (iii) providing for no
deductible in excess of $250,000; provided, however, the deductibles for perils of earthquake and windstorm shall not be in excess of 5% of the total insured value; and (iv) containing Ordinance or Law Coverage, Operation of Building Laws,
Demolition Costs and Increased Cost of Construction in an amount reasonably required by Beneficiary or if any of the Improvements or the use of the Property constitute non-conforming structures then in the amount of 100% of the Full Replacement
Cost. The Full Replacement Cost shall be determined from time to time by an appraiser or contractor designated and paid by Trustor and approved by Beneficiary or by an engineer or appraiser in the regular employ of the insurer. The “Full
Replacement Cost” for purposes of this Article III shall mean the estimated total cost of construction required to replace the Improvements with a substitute of like utility, and using modern materials and current standards, design and layout.
For purposes of calculating Full Replacement Cost direct (hard) costs shall include, without limitation, labor, materials, supervision and contractor’s profit and overhead and indirect (soft) costs shall include, without limitation, fees for
architect’s plans and specifications, construction financing costs, permits, sales taxes, insurance and other costs included in the Marshall Valuation Service published by Marshall & Swifts. 

(2) Commercial General Liability insurance against claims for personal injury, bodily injury, death or property damage occurring upon,
in or about the Property, such insurance (i) to be on the so-called “occurrence” form with a combined single limit of not less than the amount set forth in the Defined Terms; (ii) to continue at not less than this limit until
required to be changed by Beneficiary in writing by reason of changed economic 
  

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conditions making such protection inadequate; 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 written and oral contracts; and (e) contractual liability covering the indemnities contained in this Deed of Trust to the extent available.

 (3) Business Income insurance in an amount sufficient to prevent Trustor from becoming a co-insurer within the terms of the
applicable policies, and sufficient to recover 24 months “Business Income” (as hereinafter defined) and with an Extended Period of Indemnity of 12 months. The amount of such insurance shall be increased from time to time during the term of
this Deed of Trust as and when new leases and renewal leases are entered into and rents payable increase or the annual estimate of gross income from occupancy of the Property increases to reflect such rental increases. “Business Income”
shall mean the sum of (i) the total annual estimate of gross income in connection with the operation, use and from use and occupancy of the Property as a hotel which is received by Manager, Operating Lessee and/or Trustor, including without
limitation, all hotel room revenues, restaurant food and beverage revenues and other revenues, less any non-continuing expenses for such period, (ii) the amount of all rent and other charges (such as, but not limited to, operating expenses,
insurance premiums and taxes) which are the obligation of tenants or occupants to Manager, Operating Lessee and/or Trustor, and (iii) any other amounts payable to Trustor or to any affiliate of Trustor pursuant to leases or occupancy or license
agreements of any type or nature. 
 (4) If Beneficiary determines at any time that any part of the Property is located in an
area identified on a Flood Hazard Boundary Map or Flood Insurance Rate Map issued by the Federal Emergency Management Agency as having special flood hazards and flood insurance has been made available, Trustor will maintain a flood insurance policy
meeting the requirements of the current guidelines of the Federal Insurance Administration with a generally acceptable insurance carrier, in an amount not less than the lesser of (i) the Full Replacement Cost or (ii) the maximum amount of
insurance which is 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 amended. 

(5) During the period of any construction or renovation or alteration of the Improvements, a so-called “Builder’s All
Risk” insurance policy in non-reporting form for any Improvements under construction, renovation or alteration including, without limitation, for demolition and increased cost of construction or renovation, in an amount approved by Beneficiary
including an Occupancy endorsement and Worker’s Compensation Insurance covering all persons engaged in the construction, renovation or alteration in an amount at least equal to the minimum required by statutory limits of the State of
California. 
 (6) Workers’ Compensation insurance, subject to the statutory limits of the State of California, and
employer’s liability insurance with a limit of at least $1,000,000.00 per accident and per disease per employee, and $1,000,000.00 for disease in the aggregate in respect of any work or operations on or about the Property, or in connection with
the Property or its operations (if applicable). 
  

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 (7) Boiler & Machinery, or Equipment Breakdown Coverage, insurance covering the
major components of the central heating, air conditioning and ventilating systems, boilers, other pressure vessels, high pressure piping and machinery, elevators and escalators, if any, and other similar equipment installed in the Improvements, in
an amount equal to one hundred percent (100%) of the full replacement cost of all equipment installed in, on or at the Improvements with sublimit of $200,000,000 for the Property. These policies shall insure against physical damage to and loss
of occupancy and use of the Improvements arising out of an accident or breakdown. 
 (8) Insurance from or against all losses,
damages, costs, expenses, claims and liabilities related to or arising from earthquake on such form of insurance policy as required by Beneficiary in the amount of $165,000,000.00 as follows: (i) Primary Coverage of $165,000,000 shared among
the Property and the following five (5) California properties owned by Affiliates of Trustor or Liable Party: Ritz Half Moon Bay, One Miramontes Point Road, Half Moon Bay, San Mateo County, (b) Loews Santa Monica, 1700 Ocean Avenue, Santa
Monica, Los Angeles County, (c) Ritz Laguna, One Ritz-Carlton Drive, Dana Point, Orange County, (d) Hyatt La Jolla, 3777 La Jolla Village Drive, San Diego, San Diego County, and (e) Del Coronado, 500 Orange Avenue, Coronado, San Diego
County; and (ii) with a maximum deductible of 5% on the total insured value. 
 (9) Insurance from and against all losses,
damages, costs, expenses, claims and liabilities related to or arising from acts of terrorism, of such types, in such amounts, with such deductibles, issued by such companies, and on such forms of insurance policies as required by Beneficiary.

 (10) Business Automobile Insurance with a combined single limit of not less than $1,000,000 per occurrence for bodily injury
and property damage arising out of the use of owned, non-owned, hired and/or leased automotive equipment when such equipment is operated by Trustor, Trustor’s employees or Trustor’s agents in connection with the Property. 

(11) Windstorm insurance at an amount equal to the Full Replacement Cost plus loss of rents and EPI as above and subject to deductibles
as approved by Beneficiary. 
 (12) Such other insurance as may from time to time be reasonably required by Beneficiary against
other insurable hazards, including, but not limited to, vandalism, environmental, sinkhole and mine subsidence. 
 (b)
Beneficiary’s interest must be clearly stated by endorsement in the insurance policies described in this Section 3.1 as follows: 

(1) The policies of insurance referenced in Subsections (a)(1), (a)(3), (a)(4), (a)(5), (a)(7), (a)(8), (a)(9), and (a)(11) of this
Section 3.1 shall identify Beneficiary under the New York Standard Mortgagee Clause (non-contributory) endorsement. 
 (2)
The insurance policy referenced in Section 3.1 (a)(2) shall name Beneficiary as an additional insured. 
  

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 (3) The policies of insurance referenced in Section 3.1(a)(9) shall name Beneficiary
in such form and manner as Beneficiary shall require, consistent with industry practice of institutional lenders. 
 (4) All of
the policies referred to in Section 3.1 shall provide for at least thirty (30) days’ written notice to Beneficiary in the event of policy cancellation and/or material change. 

(c) All the insurance companies must be authorized to do business in the State and be approved by Beneficiary in the good faith exercise
of its discretion. Insurance must be provided by an AM Best Excellent rated company with a financial size X ($500mm - $750mm); provided this requirement shall be deemed satisfied if 90% of the insurance carriers have the specified rating and
financial size and in no event shall the financial size be below VIII and, provided further that those carriers below X are not in the primary or first $100,000,000 of coverage. So called “Cut-through” endorsements shall not be permitted.

 (d) Trustor shall deliver evidence satisfactory to Beneficiary of payment of premiums due under the insurance policies.

 (e) Certified copies of the policies, and any endorsements, shall be made available for inspection by Beneficiary upon
request. If any policy is canceled before the Loan is satisfied, and Trustor fails to immediately procure replacement insurance, Beneficiary reserves the right but shall not have the obligation immediately to procure replacement insurance at
Trustor’s cost. 
 (f) Trustor shall be required during the term of the Loan to continue to provide Beneficiary with
evidence of original renewal policies or replacements of the insurance policies referenced in Section 3.1 (a). Beneficiary may accept Certificates of Insurance evidencing insurance policies referenced in Subsections (a)(2), (a)(4), and (a)(6)
of this Section 3.1 instead of requiring the actual policies. Beneficiary shall be provided with renewal Certificates of Insurance, or Binders, not less than fifteen (15) days following expiration. The failure of Trustor to maintain the
insurance required under this Article III shall not constitute a waiver of Trustor’s obligation to fulfill these requirements. 

(g) All binders, policies, endorsements, certificates, and cancellation notices are to be sent to the Beneficiary’s Address for
Insurance Notification as set forth in the Defined Terms until changed by notice from Beneficiary. 
 Section 3.2
ADJUSTMENT OF CLAIMS. 
 (a) Subject to clause (c) below, in the event of a Casualty or Condemnation where the claim
for damage to, or loss or destruction of, all or a portion of the Property does not exceed $2,000,000.00, Trustor may settle and adjust such claim; provided that such adjustment is carried out in a competent and timely manner. In such case,
Trustor and Operating Lessee are authorized to collect and receive for Beneficiary any insurance proceeds. 
 (b) Subject to
clause (c) below, in the event of a Casualty or Condemnation where the claim for damage to, or loss or destruction of, all or a portion of the Property exceeds $2,000,000.00, Trustor may settle and adjust such claim only with the prior written
consent of the Beneficiary (which consent shall not be unreasonably withheld or delayed). 
  

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 (c) Notwithstanding the terms of clauses (a) and (b) above, Beneficiary shall have
the sole authority to adjust any claim with respect to a Casualty or Condemnation and to collection all insurance proceeds during the period an Event of Default has occurred and is continuing.

Section 3.3 ASSIGNMENT TO BENEFICIARY. In the event of the foreclosure of this Deed of Trust or other transfer of the title
to the Property in extinguishment of the Secured Indebtedness, all right, title and interest of Trustor and/or Operating Lessee as applicable in and to any insurance policy, or premiums or payments in satisfaction of claims or any other rights under
these insurance policies and any other insurance policies covering the Property shall pass to the transferee of the Property. 

ARTICLE IV 

BOOKS, RECORDS AND ACCOUNTS 

Section 4.1 BOOKS AND RECORDS. Trustor and/or Operating Lessee as applicable shall keep adequate books and records of account
in accordance with generally accepted accounting principles (as supplemented by the Uniform System of Accounts for the Lodging Industry, current edition) (“GAAP”), or in accordance with other methods acceptable to Beneficiary in its sole
discretion, consistently applied and furnish to Beneficiary: 
 (a) quarterly rent rolls in electronic form if available and
otherwise by hard copy, detailing the names of all tenants of the Improvements, the portion of Improvements occupied by each tenant, the base rent and any other charges payable under each Lease (as defined in Section 5.2) and the term of each
Lease, including the expiration date, and any other information as is reasonably required by Beneficiary, within thirty (30) days after the end of each fiscal quarter; 

(b) a quarterly profit and loss statements on a cash basis and operating statement of the Property and year to date operating statements
in electronic form detailing the total revenues received, total expenses incurred, total cost of all capital improvements, total debt service and total cash flow, to be prepared and certified by Trustor in the form required by Beneficiary, and if
available, any quarterly operating statement prepared by an independent certified public accountant, within thirty to sixty (30-60) days after the close of each fiscal quarter of Trustor; 

(c) an annual balance sheet and profit and loss statement of Trustor in electronic form in the form required by Beneficiary, prepared and
certified by Trustor, and if required by Beneficiary, audited financial statements for Trustor and any Liable Party prepared by an independent certified public accountant acceptable to Beneficiary within ninety (90) days after the close of each
fiscal year of Trustor and the Liable Party, as the case may be; 
  

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 (d) the annual operating budget (i) when and as prepared by and submitted by Manager
for approval by Trustor and/or Operating Lessee and (ii) in the form when and as finally approved by Trustor and/or Operating Lessee. 

(e) copies of any appraisals obtained by Trustor; 

(f) quarterly financial statements and supplemental statements of Liable Party evidencing compliance with the Minimum Net Worth
Requirements (as defined in Section 8.5); and, 
 (g) Monthly STAR Reports compiled by Smith Travel Research, Inc. which
shall be submitted quarterly and/or provided to Beneficiary upon written request. 
 Section 4.2 PROPERTY REPORTS.
Upon request from Beneficiary or its representatives and designees, Trustor and/or Operating Lessee as applicable shall furnish in a timely manner to Beneficiary: an accounting of all security deposits held in connection with any Lease of any part
of the Property, including the name and identification number of the accounts in which such security deposits are held, the name and address of the financial institutions in which such security deposits are held and the name of the person to contact
at such financial institution, along with any authority or release necessary for Beneficiary to obtain information regarding such accounts directly from such financial institutions. 

Section 4.3 ADDITIONAL MATTERS. 

(a) Trustor shall furnish Beneficiary with such other additional financial or management information (including State and Federal tax
returns) as may, from time to time, be reasonably required by Beneficiary or the rating agencies in form and substance satisfactory to Beneficiary or the rating agencies. 

(b) Trustor shall furnish Beneficiary and its agents convenient facilities for the examination and audit of any such books and records.

 (c) Beneficiary and its representatives shall have the right upon prior written notice to examine and audit the records,
books, management and other papers of Trustor and its affiliates or of any guarantor or indemnitor which reflect upon their financial condition and/or the income, expenses and operations of the Property, at the Property or at any office regularly
maintained by Trustor, its affiliates or any guarantor or indemnitor where the books and records are located. Beneficiary shall have the right upon notice to make copies and extracts from the foregoing records and other papers. 

 

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 ARTICLE V 

LEASES AND OTHER AGREEMENTS AFFECTING THE PROPERTY 

Section 5.1 TRUSTOR’S REPRESENTATIONS AND WARRANTIES. 

Trustor represents and warrants to Trustee and Beneficiary as follows: 

(a) There are no leases or occupancy agreements affecting the Property except those leases and amendments listed on Exhibit B to the
Assignment of Leases, (including without limitation the License and Services Agreement with Mina Group, LLC for the operation of the restaurant at the Property and for the operation of the Clock Bar at the Property (collectively the “Service
Agreements”)) and Trustor has delivered to Beneficiary true, correct and complete copies of all leases, including amendments (collectively, “Existing Leases”) and all guaranties and amendments of guaranties given in connection with
the Existing Leases, if any (the “Lease Guaranties”). 
 (b) Except as set forth below, there are no defaults by
Trustor and/or Operating Lessee as applicable under the Existing Leases and, to the best knowledge of Trustor, there are no defaults by Manager or any tenants under the Existing Leases. Notwithstanding the foregoing, Trustor has disclosed to
Beneficiary in writing the fact that BCBG has not made certain payments under the terms of its lease and the material terms of such dispute. 

(c) The Existing Leases and Lease Guaranties, if any, are in full force and effect. 

(d) There are no defaults by Trustor and/or Operating Lessee as applicable under the Service Agreement and, to the best knowledge of
Trustor, there are no defaults by Manager or Mina Group, LLC under the Service Agreements and the Service Agreements are in full force and effect. 

(e) To the best knowledge of Trustor, none of the tenants now occupying 10% or more of the Property or having a current lease affecting
10% or more of the Property is the subject of any bankruptcy, reorganization or insolvency proceeding or any other debtor-creditor proceeding. 

(f) No Existing Leases with a square footage of 9,500 square feet or more may be amended terminated or canceled unilaterally by a tenant
and no tenant may be released from its obligations, except in the event of (i) material damage to, or destruction of, the Property or (ii) condemnation. 

Section 5.2 REPRESENTATIONS AND COVENANTS WITH RESPECT TO THE OPERATING LEASE. 

(a) The Operating Lease shall not be amended or modified or terminated without the prior written approval of Beneficiary; provided
however, that Trustor and Operating Lessee may without Beneficiary’s approval agree to non-material modifications or amendments to the Operating Lease which do not materially alter the obligations of Trustor as Operating

  

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Lessor, grant Operating Lessee any rights or powers with respect to the Property that are inconsistent with the rights and obligations of Trustor under the Loan Documents, or grant or confer upon
any third party any of the rights, benefits or obligations under the Operating Lease, including without limitation any right to receive any of the income, revenue or profits of the Property. Notwithstanding the foregoing, Trustor and Operating
Lessee may enter into rent schedule amendments and corresponding amendments to the text of the Operating Lease (e.g., lease term, dates, amounts, etc.) to the Operating Lease to the extent necessary to comply with REIT tax rules provided that
Beneficiary is provided with a copy of all such amendments. 
 (b) Trustor absolutely, presently and unconditionally grants,
assigns and transfers to Beneficiary all of Trustor’s right, title, interest and estate in, to and under the Operating Lease; provided, that Beneficiary acknowledges and agrees that it will not exercise its rights prior to an Event of Default
by Trustor hereunder. 
 (c) In the event of a termination, cancellation or surrender of the Operating Lease by Operating
Lessee, Trustor shall assume any and all obligations of Operating Lessee under the Management Agreement and cure any and all defaults of Operating Lessee under the Management Agreement. 

Section 5.3 ASSIGNMENT OF LEASES. In order to further secure payment of the Secured Indebtedness and the performance of
Trustor’s and/or Operating Lessee’s as applicable, obligations under the Loan Documents, Trustor and/or Operating Lessee as applicable absolutely, presently and unconditionally grants, assigns and transfers to Beneficiary all of
Trustor’s and/or Operating Lessee’s right, title, interest and estate in, to and under (i) all of the Existing Leases and Lease Guaranties affecting the Property and (ii) all of the future leases, lease amendments, guaranties and
amendments of guaranties and (iii) the Rents and Profits. Beneficiary acknowledges and agrees that Trustor and Operating Lessee are permitted to collect the Rents and Profits unless and until an Event of Default occurs. The Existing Leases and
Lease Guaranties and all future leases, lease amendments, guaranties and amendments of guaranties are collectively referred to as the “Leases” but such term expressly excludes the Operating Lease. 

Section 5.4 PERFORMANCE OF OBLIGATIONS. 

(a) Trustor and/or Operating Lessee as applicable shall perform all obligations under any and all Leases. If any of the acts described in
this Section are done without the written consent of Beneficiary, at the option of Beneficiary, they shall be of no force or effect and shall constitute a default under this Deed of Trust. 

(b) Trustor and/or Operating Lessee as applicable agrees to furnish Beneficiary executed copies of all future Leases for premises of
9,500 square feet or more. Trustor and/or Operating Lessee as applicable shall not, without the express written consent of Beneficiary, (i) enter into or extend any Lease unless the Lease complies with the Leasing Guidelines which are attached
to this Deed of Trust as Exhibit “B”, or (ii) cancel or terminate any Leases or Lease Guaranties except in the case of a default unless Trustor has entered into a new Lease covering all of the premises of the Lease being
terminated, or (iii) modify or amend any Leases in any material way or materially reduce the rent, or (iv) unless the tenants remain 

 

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liable under the Leases, consent to an assignment of the tenant’s interest or to a subletting of the demised premises under any Lease, or (v) accept payment of advance rents or security
deposits in an amount in excess of one month’s rent or (vi) enter into any options to purchase the Property. 
 (c)
Notwithstanding anything to the contrary in this Deed of Trust, (i) the covenants and agreements of Trustor and Operating Lessee in Sections 5.4, 5.5 and 5.6 hereunder shall be subject to the limitation that Trustor and Operating Lessee shall
only be required to use commercially reasonable efforts to enforce any rights they may have under the Management Agreement to ensure that Manager takes actions under the Management Agreement consistent with the requirements of Sections 5.4, 5.5 and
5.6 hereof and (ii) subject to the obligation to use commercially reasonable efforts to enforce any rights under the Management Agreement, Trustor, Operating Lessee and Liable Party shall not be deemed in default hereunder or under the Guaranty
as a result of the exercise by Manager of any of its rights pursuant to the Management Agreement with respect to the subject matter of Sections 5.4, 5.5 and 5.6 of this Deed of Trust; and (iii) the rights of Manager under the Management
Agreement with respect to the subject matter of Sections 5.4, 5.5 and 5.6 shall not be limited or restricted in any manner except as may be expressly provided in an instrument in writing signed by Manager and delivered to Beneficiary. 

(d) Notwithstanding the foregoing, the Operating Lease shall not be subject to the Leasing Guidelines or the provisions of
Section 5.3, provided however that any leasing or subleasing of all or any part of the Leased Improvements (as defined in the Operating Lease) pursuant to the Operating Lease shall be subject to the Leasing Guidelines. 

Section 5.5 SUBORDINATE LEASES. The Operating Lease and each Lease entered into after the Execution Date affecting the
Property shall be absolutely subordinate to the lien of this Deed of Trust and shall also contain a provision, satisfactory to Beneficiary, to the effect that in the event of the judicial or non-judicial foreclosure of the Property, at the election
of the acquiring foreclosure purchaser, the particular Lease shall not be terminated and the tenant shall attorn to the purchaser. Beneficiary shall have the right in its sole and absolute discretion to make any Lease superior to the Deed of Trust.
If requested to do so, the tenant shall agree to enter into a new Lease for the balance of the term upon the same terms and conditions. If Beneficiary requests, Trustor and/or Operating Lessee as applicable shall cause a tenant or tenants to enter
into subordination and attornment agreements or nondisturbance agreement with Beneficiary on forms which have been approved by Beneficiary. Trustor shall pay or cause to be paid by Operating Lessee all costs and expenses incurred by Beneficiary in
connection with granting a non-disturbance agreement including reasonable attorney’s fees, and a processing fee of $2,500.00 for each non-disturbance agreement. 

Section 5.6 LEASING COMMISSIONS. Trustor covenants and agrees that all contracts and agreements relating to the Property, if
any, entered into by Trustor or Operating Lessee requiring the payment of leasing commissions, management fees or other similar compensation shall (i) provide that the obligation will not be enforceable against Beneficiary and (ii) be
subordinate to the lien of this Deed of Trust. Beneficiary will be provided evidence of Trustor’s compliance with this Section upon request. 
  

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 Section 5.7 REPRESENTATIONS AND COVENANTS WITH RESPECT TO THE OWNER AGREEMENT.

 (a) The Owner Agreement shall not be amended or modified or terminated without the prior written approval of Beneficiary;
provided however, that Manager, Trustor and Operating Lessee may without Beneficiary’s approval agree to non-material modifications or amendments to the Owner Agreement which do not materially alter the obligations or rights of Trustor
thereunder. 
 (b) Trustor absolutely, presently and unconditionally grants, assigns and transfers to Beneficiary all of
Trustor’s right, title, interest and estate in, to and under the Owner Agreement; provided, that Beneficiary acknowledges and agrees that it will not exercise its rights prior to an Event of Default by Trustor hereunder. 

(c) The Owner Agreement shall be and remain subject and subordinate to this Deed of Trust and shall be terminated and of no further force
and effect upon a foreclosure of the Property by Beneficiary or the acceptance of a deed in lieu of foreclosure. 
 ARTICLE VI

 ENVIRONMENTAL HAZARDS 

Section 6.1 REPRESENTATIONS AND WARRANTIES. Trustor hereby represents, warrants, covenants and agrees to and with Beneficiary
that (i) neither Trustor nor, to the best of Trustor’s knowledge, after due inquiry, any tenant, subtenant or occupant of the Property, has at any time placed, suffered or permitted the presence of any Hazardous Materials (as defined in
Section 6.5) at, on, under, within or about the Property except as expressly disclosed in the Phase I Environmental Report provided to Beneficiary or as expressly approved by Beneficiary in writing and (ii) all operations or activities
upon the Property, and any use or occupancy of the Property by Trustor and/or Operating Lessee as applicable, and any tenant, subtenant or occupant of the Property are presently and shall in the future be in compliance with all Requirements of
Environmental Laws (as defined in Section 6.6), (iii) Trustor and/or Operating Lessee as applicable will use best efforts to assure that any tenant, subtenant or occupant of the Property shall in the future be in compliance with all
Requirements of Environmental Laws, (iv) all operations or activities upon the Property are presently and shall in the future be in compliance with all Requirements of Environmental Laws, (v) Trustor does not know of, and has not received,
any written or oral notice of other communication from any person or entity (including, without limitation, a governmental entity) relating to Hazardous Materials or Remedial Work pertaining thereto, of possible liability of any person or entity
pursuant to any Requirements of Environmental Laws, other environmental conditions in connection with the Property, or any actual administrative or judicial proceedings in connection with any of the foregoing, (vi) Trustor and/or Operating
Lessee as applicable shall not do or allow any tenant or other user of the Property to do any act that materially increases the dangers to human health or the environment, poses an unreasonable risk of harm to any person or entity (whether on or off
the Property), impairs or may impair the value of the Property, is contrary to any requirement of any insurer, constitutes a public or private nuisance, constitutes waste, or violates any covenant, condition, agreement or easement applicable to the
Property, and (vii) Trustor has truthfully and fully 
  

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provided to Beneficiary, in writing, any and all information relating to environmental conditions in, on, under or from the Property that is known to Trustor and that is contained in Trustor
and/or Operating Lessee’s as applicable, files and records, including, without limitation, any reports relating to Hazardous Materials in, on, under or from the Property and/or to the environmental condition of the Property. 

Section 6.2 REMEDIAL WORK. In the event any investigation or monitoring of site conditions or any clean-up, containment,
restoration, removal or other remedial work (collectively, the “Remedial Work”) is required under any Requirements of Environmental Laws, Trustor and/or Operating Lessee as applicable shall perform or cause to be performed the Remedial
Work in compliance with the applicable law, regulation, order or agreement. All Remedial Work shall be performed by one or more contractors, selected by Trustor and/or Operating Lessee as applicable and approved in advance in writing by Beneficiary,
and under the supervision of a consulting engineer, selected by Trustor and/or Operating Lessee as applicable and approved in advance in writing by Beneficiary. All costs and expenses of Remedial Work shall be paid by Trustor and/or Operating Lessee
as applicable including, without limitation, the charges of the contractor(s) and/or the consulting engineer, and Beneficiary’s reasonable attorneys’, architects’ and/or consultants’ fees and costs incurred in connection with
monitoring or review of the Remedial Work. In the event Trustor and/or Operating Lessee as applicable shall fail to timely commence, or cause to be commenced, or fail to diligently prosecute to completion, the Remedial Work, Beneficiary may, but
shall not be required to, cause such Remedial Work to be performed, subject to the provisions of Sections 11.5 and 11.6. 

Section 6.3 ENVIRONMENTAL SITE ASSESSMENT. Beneficiary shall have the right, at any time and from time to time, if
Beneficiary has a reasonable belief that the environmental condition of the Property has adversely changed since the date of the Loan to undertake, at the expense of Trustor, an environmental site assessment on the Property, including any testing
that Beneficiary may determine, in its sole discretion, is necessary or desirable to ascertain the environmental condition of the Property and the compliance of the Property with Requirements of Environmental Laws. Trustor and/or Operating Lessee as
applicable shall cooperate fully with Beneficiary and its consultants performing such assessments and tests. 
 Section 6.4
UNSECURED OBLIGATIONS. No amounts which may become owing by Trustor to Beneficiary under this Article VI or under any other provision of this Deed of Trust as a result of a breach of or violation of this Article VI shall be secured by this
Deed of Trust. Notwithstanding the foregoing, the obligations shall continue in full force and effect and any breach of this Article VI shall constitute an Event of Default. The lien of this Deed of Trust shall not secure (i) any obligations
evidenced by or arising under the Indemnity Agreement (“Unsecured Obligations”), or (ii) any other obligations to the extent that they are the same or have the same effect as any of the Unsecured Obligations. The Unsecured Obligations
shall continue in full force, and any breach or default of any such obligations shall constitute a breach or default under this Deed of Trust but the proceeds of any foreclosure sale shall not be applied against Unsecured Obligations. Nothing in
this Section shall in any way limit or otherwise affect the right of Beneficiary to obtain a judgment in accordance with applicable law for any deficiency in recovery of all obligations that are secured by this Deed of Trust following foreclosure,
notwithstanding that the deficiency judgment may result from diminution in the value of the Property by reason of any event or occurrence pertaining to Hazardous Materials or any Requirements of Environmental Laws. 

 

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 Section 6.5 HAZARDOUS MATERIALS. 

“Hazardous Materials” shall include without limitation: 

(a) Those substances included within the definitions of “hazardous substances”, “hazardous materials,” “toxic
substances,” or “solid waste” in the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended (42 U.S.C. Sections 9601 et seq.) (“CERCLA”), as amended by Superfund Amendments
and Reauthorization Act of 1986 (Pub. L. 99-499 100 Stat. 1613) (“SARA”), the Resource Conservation and Recovery Act of 1976, (42 U.S.C. Sections 6901 et seq.) (“RCRA”), and the Hazardous Materials Transportation
Act, 49 U.S.C. Section 1801 et seq., and in the regulations promulgated pursuant to said laws, all as amended; 

(b) Those substances listed in the United States Department of Transportation Table (49 CFR 172.101 and amendments thereto) or by the
Environmental Protection Agency (or any successor agency) as hazardous substances (40 CFR Part 302 and amendments thereto); 

(c) Any material, waste or substance which is (A) petroleum, including crude oil or any fraction thereof, natural gas, natural gas
liquids, liquefied natural gas, synthetic gas usable for fuel, or any mixture thereof, (B) asbestos, (C) polychlorinated biphenyls, (D) designated as a “hazardous substance” pursuant to Section 311 of the Clean Water
Act, 33 U.S.C. Sections 1251 et seq. (33 U.S.C. Section 1321) or listed pursuant to Section 307 of the Clean Water Act (33 U.S.C. Section 1317); (E) a chemical substance or mixture regulated under the Toxic
Substances Control Act of 1976, 15 U.S.C. Sections 2601 et seq.; (F) flammable explosives; or (G) radioactive materials; 

(d) Any material, waste or substance which is included within any of the following: 

(i) any of the definitions of “acutely hazardous waste,” “extremely hazardous waste,” “hazardous
waste,” “infectious waste,” “retrograde material,” “volatile organic compound” or “waste” pursuant to Cal. Health & Safety Code Sections 25110 et seq.; 

(ii) any chemical known to the State of California to cause cancer or reproductive toxicity as published pursuant to the
Safe Drinking Water and Toxic Enforcement Act of 1986, Cal. Health & Safety Code Sections 25249.5 et seq.; 

(iii) the definition of “hazardous substance” pursuant to Cal. Health & Safety Code Section 25281;

 (iv) the definition of “hazardous substance” as used in the Carpenter-Presley-Tanner Hazardous
Substance Account Act, Cal. Health & Safety Code, Sections 25300 et seq.; 
  

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 (v) either of the definitions of “hazardous materials” or
“hazardous substances” pursuant to Cal. Health & Safety Section 25501; 
 (vi) the
definition of “hazardous material” pursuant to Cal. Health & Safety Code Section 25411; 

(vii) the definition of “asbestos” pursuant to Cal. Health & Safety Code Section 25918;

 (viii) either of the definitions of “air contaminant” or “air pollutant” as used in the
Porter-Cologne Water Quality Control Act, Cal. Health & Safety Code Sections 39000 et seq.; and 

(ix) “waste” or “hazardous substance” pursuant to Cal. Water Code Section 13050; and 

(e) Such other substances, materials and wastes which are or become regulated as hazardous or toxic under applicable local, state or
federal law, or the United States government, or which are classified as hazardous or toxic under federal, state, or local laws or regulations. 

Section 6.6 REQUIREMENTS OF ENVIRONMENTAL LAWS. “Requirements of Environmental Laws” means all requirements of
environmental, ecological, health, or industrial hygiene laws or regulations or rules of common law related to the Property, including, without limitation, all requirements imposed by any environmental permit, law, rule, order, or regulation of any
federal, state, or local executive, legislative, judicial, regulatory, or administrative agency, which relate to (i) exposure to Hazardous Materials; (ii) pollution or protection of the air, surface water, ground water, land;
(iii) solid, gaseous, or liquid waste generation, treatment, storage, disposal, or transportation; or (iv) regulation of the manufacture, processing, distribution and commerce, use, or storage of Hazardous Materials. 

ARTICLE VII 

CASUALTY, CONDEMNATION AND RESTORATION 

Section 7.1 TRUSTOR’S REPRESENTATIONS. 

Trustor represents and warrants as follows: 

(a) Except as expressly approved by Beneficiary in writing, no casualty or damage to any part of the Property which would cost more than
$500,000.00 to restore or replace has occurred which has not been fully restored or replaced. 
 (b) No part of the Property has
been taken in condemnation or other similar proceeding or transferred in lieu of condemnation, nor has Trustor received notice of any proposed condemnation or other similar proceeding affecting the Property. 

 

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 (c) There is no pending proceeding for the total or partial condemnation of the Property.

 Section 7.2 RESTORATION. 

(a) Trustor and/or Operating Lessee as applicable shall give prompt written notice of any casualty to the Property which would cost more
than $500,000.00 to repair to Beneficiary whether or not required to be insured against. The notice shall describe the nature and cause of the casualty and the extent of the damage to the Property. Trustor and/or Operating Lessee as applicable
covenants and agrees to commence and diligently pursue to completion the Restoration. 
 (b) Trustor assigns to Beneficiary all
Insurance Proceeds which Trustor and/or Operating Lessee as applicable is entitled to receive in connection with a casualty whether or not such insurance is required under this Deed of Trust. Except as and to the extent provided in Section 7.4,
in the event of any damage to or destruction of the Property, and provided (1) an Event of Default does not currently exist, and (2) Beneficiary has determined that (i) there has not been an Impairment of the Security (as defined in
Section 7.2 (c)), and (ii) the repair, restoration and rebuilding of any portion of the Property that has been partially damaged or destroyed (the “Restoration”) can be accomplished in full compliance with all Requirements to the
same condition, character and general utility as nearly as possible to that existing prior to the casualty and at least equal in value as that existing prior to the casualty, the Net Insurance Proceeds shall be applied to the cost of Restoration in
accordance with the terms of this Article. Beneficiary shall hold and disburse the Insurance Proceeds less the cost, if any, to Beneficiary of recovering the Insurance Proceeds including, without limitation, reasonable attorneys’ fees and
expenses, and adjusters’ fees (the “Net Insurance Proceeds”) to the Restoration. 
 (c) For the purpose of this
Article, “Impairment of the Security” shall mean any or all of the following: (i) the casualty or damage occurs during the last year of the term of the Loan, including any extensions; or (ii) restoration of the Property is
estimated to require more than one year to complete from the date of the occurrence; or (iii) the occurrence of a Material Casualty (as defined in 7.4(b)) or a Material Condemnation (as defined in Section 7.4(b)), if the Management
Agreement does not require Operating Lessee or Trustor to restore the Property, and/or Operating Lessee and/or Trustor have the right to terminate the Management Agreement pursuant to the terms of the Management Agreement as a result of such
Casualty or Condemnation. 
 (d) If the Net Insurance Proceeds are to be used for the Restoration in accordance with this
Article, Trustor and/or Operating Lessee as applicable shall comply with Beneficiary’s Requirements For Restoration as defined in Section 7.5 below. Upon Trustor’s and/or Operating Lessee’s, as applicable, satisfaction and
completion of the Requirements For Restoration and upon confirmation that there is no Event of Default then existing, Beneficiary shall pay any remaining Restoration Funds (as defined in Section 7.5 below) then held by Beneficiary to Trustor.

  

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 (e) In the event that the conditions for Restoration set forth in this Section have not been
met and subject to the provisions of Section 7.4 if applicable, Beneficiary may, at its option, apply the Net Insurance Proceeds to the reduction of the Secured Indebtedness in such order as Beneficiary may determine and Beneficiary may declare
the entire Secured Indebtedness immediately due and payable. After payment in full of the Secured Indebtedness, any remaining Restoration Funds shall be paid to Trustor. 

Section 7.3 CONDEMNATION. 

(a) If the Property or any part of the Property is taken by reason of any condemnation or similar eminent domain proceeding, or by a grant
or conveyance in lieu of condemnation or eminent domain (“Condemnation”), Beneficiary shall be entitled to all compensation, awards, damages, proceeds and payments or relief for the Condemnation (“Condemnation Proceeds”). At its
option, Beneficiary shall be entitled to commence, appear in and prosecute in its own name any action or proceeding or to make any compromise or settlement in connection with such Condemnation. Trustor hereby irrevocably constitutes and appoints
Beneficiary as its attorney-in-fact, which appointment is coupled with an interest, to commence, appear in and prosecute any action or proceeding or to make any compromise or settlement in connection with any such Condemnation. 

(b) Trustor assigns to Beneficiary all Condemnation Proceeds which Trustor and/or Operating Lessee as applicable is entitled to receive.
Except as and to the extent provided in Section 7.4, in the event of any Condemnation, and provided (1) an Event of Default does not currently exist, and (2) Beneficiary has determined that (i) there has not been an Impairment of
the Security, and (ii) the Restoration of any portion of the Property that has not been taken can be accomplished in full compliance with all Requirements to the same condition, character and general utility as nearly as possible to that
existing prior to the taking and at least equal in value as that existing prior to the taking, then Trustor and/or Operating Lessee as applicable shall commence and diligently pursue to completion the Restoration. Beneficiary shall hold and disburse
the Condemnation Proceeds less the cost, if any, to Beneficiary of recovering the Condemnation Proceeds including, without limitation, reasonable attorneys’ fees and expenses, and adjusters’ fees (the “Net Condemnation Proceeds”)
to the Restoration. 
 (c) In the event the Net Condemnation Proceeds are to be used for the Restoration, Trustor and/or
Operating Lessee as applicable shall comply with Beneficiary’s Requirements For Restoration as set forth in Section 7.5 below. Upon Trustor and/or Operating Lessee as applicable’s satisfaction and completion of the Requirements For
Restoration and upon confirmation that there is no Event of Default then existing, Beneficiary shall pay any remaining Restoration Funds (as defined in Section 7.5 below) then held by Beneficiary to Trustor. 

(d) In the event that the conditions for Restoration set forth in this Section have not been met and subject to the provisions of
Section 7.4, if applicable, Beneficiary may, at its option, apply the Net Condemnation Proceeds to the reduction of the Secured Indebtedness in such order as Beneficiary may determine and Beneficiary may declare the entire Secured Indebtedness
immediately due and payable. After payment in full of the Secured Indebtedness, any remaining Restoration Funds shall be paid to Trustor. 
  

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 Section 7.4 CASUALTY AND CONDEMNATION RESTORATION PURSUANT TO MANAGEMENT
AGREEMENT. 
 (a) Notwithstanding any provision of the Deed of Trust or any other Loan Document, in the event of a Material
Casualty or Material Condemnation, if the Management Agreement provides that the Operating Lessee or Trustor is required to restore the Property and such Operating Lessee or Trustor does not have the right to terminate the Management Agreement
pursuant to the terms of the Management Agreement as a result of such Casualty or Condemnation or otherwise, then Beneficiary shall make such proceeds available to Trustor for the restoration of the Property (which shall be applied in accordance
with the Requirements for Restoration) as set forth in Section 7.5, provided that: (i) an Event of Default does not then currently exist, (ii) the repair, restoration and rebuilding of any portion of the Property that has been damaged
or destroyed or which remains after a Material Condemnation, can be accomplished in full compliance with all Requirements for Restoration and other requirements relating to land and building design and construction, use and maintenance, that pertain
to or affect the Property or any part of the Property to the same condition, character and general utility as nearly as possible to that existing prior to the casualty and at least equal in value as that existing prior to the casualty (the repair,
restoration and rebuilding to the condition described in this clause (ii) is referred to herein as the “Restoration Standard”), (iii) the Casualty or Condemnation occurs more than one year prior to the Maturity Date; and
(iv) restoration of the Property in accordance with the terms herein is estimated to require not more than one year to complete from the date of the occurrence of the Casualty or Condemnation; and (v) the estimated cost to restore the
Property in accordance with the terms herein, as approved by Beneficiary in its commercially reasonable discretion, does not exceed the amount of the Net Insurance Proceeds available for restoration and other amounts, if any, committed to the costs
of the restoration by Liable Party or any Affiliate (as defined in Section 10.4), evidenced by documents satisfactory to Beneficiary, and with respect to which Beneficiary has been granted a security interest as evidenced by such documents
required by Beneficiary satisfactory in form and content to Beneficiary. 
 (b) For purposes of this Section 7.4, the
following terms have the following meanings: 
 (i) “Material Casualty” shall mean a Casualty where the loss
(a) is in an aggregate amount equal to or in excess of thirty percent (30%) of the outstanding principal amount of the Loan or (b) has caused thirty percent (30%) or more of the hotel rooms or common areas (including banquet and
conference facilities) in the Property to be unavailable for its applicable use. 
 (ii) “Material Condemnation”
shall mean a Condemnation where the loss (a) is in an aggregate amount equal to or in excess of thirty percent (30%) of the outstanding principal amount of the Loan or (b) has caused thirty percent (30%) or more of the hotel
rooms or common areas (including banquet and conference facilities) in the applicable Property to be unavailable for its applicable use. 
  

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 Section 7.5 REQUIREMENTS FOR RESTORATION. Unless otherwise expressly agreed in a
writing signed by Beneficiary, the following are the Requirements For Restoration: 
 (a) If the Net Insurance Proceeds or Net
Condemnation Proceeds are to be used for the Restoration, prior to the commencement of any Restoration work (other than activities required to protect the Property from further damage or to provide for the health and/or safety of the public or
workers) (the “Work”), Trustor and/or Operating Lessee as applicable shall provide Beneficiary for its review and written approval (i) complete plans and specifications for the Work which (A) have been approved by all required
governmental authorities, (B) have been approved by an architect satisfactory to Beneficiary (the “Architect”) and (C) are accompanied by Architect’s signed statement of the total estimated cost of the Work (the
“Approved Plans and Specifications”); (ii) an estimate of the amount of money which Beneficiary reasonably determines will be sufficient when added to the Net Insurance Proceeds or Condemnation Proceeds to pay the entire cost of the
Restoration (collectively referred to as the “Restoration Funds”); (iii) evidence that the Approved Plans and Specifications and the Work are in compliance with all Requirements; (iv) an executed contract for construction with a
contractor satisfactory to Beneficiary (the “Contractor”) in a form approved by Beneficiary in writing; and (v) a completion guaranty of such Work by Liable Party in a form reasonably satisfactory to Beneficiary. 

(b) Trustor and/or Operating Lessee as applicable shall not commence the Work, other than temporary work to protect the Property, protect
the health or safety of the public or wokers, or prevent interference with business, until Trustor and/or Operating Lessee as applicable shall have complied with the requirements of subsection (a) of this Section 7.5. So long as there does
not currently exist an Event of Default and the following conditions have been complied with or, in Beneficiary’s discretion, waived, Beneficiary shall disburse the Restoration Funds in increments to Trustor, from time to time as the Work
progresses: 
 (i) Architect or another person approved by Beneficiary shall be in charge of the Work.

 (ii) Beneficiary shall disburse the Restoration Funds directly or through escrow with a title company selected
by Trustor and approved by Beneficiary, upon not less than ten (10) days’ prior written notice from Trustor to Beneficiary and Trustor’s delivery to Beneficiary of (A) Trustor’s written request for payment (a “Request
for Payment”) accompanied by a certificate by Architect in a form satisfactory to Beneficiary which states that (a) all of the Work completed to that date has been completed in compliance with the Approved Plans and Specifications and in
accordance with all Requirements, (b) the amount requested has been paid or is then due and payable and is properly a part of the cost of the Work, and (c) when added to all sums previously paid by Beneficiary, the requested amount does
not exceed the value of the Work completed to the date of such certificate; and (B) evidence satisfactory to Beneficiary that the balance of the Restoration Funds remaining after making the payments shall be sufficient to pay the balance of the
cost of the Work. Each Request for Payment shall be accompanied by (x) waivers of liens covering that part of the Work previously paid for, if any (y) a title search or by other evidence satisfactory to Beneficiary that no mechanic’s
or materialmen’s liens or other similar liens for labor or materials supplied in connection with the Work have been filed against the Property and not discharged of record, and (z) an endorsement to Beneficiary’s title policy insuring
that no encumbrance exists on or affects the Property other than the Permitted Exceptions. 
  

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 (iii) The final Request for Payment shall be accompanied by (i) a final
certificate of occupancy or other evidence of approval of appropriate governmental authorities for the use and occupancy of the Improvements, (ii) evidence that the Restoration has been completed in accordance with the Approved Plans and
Specifications and all Requirements, (iii) evidence that the costs of the Restoration have been paid in full, and (iv) evidence that no mechanic’s or similar liens for labor or material supplied in connection with the Restoration are
outstanding against the Property, including final waivers of liens covering all of the Work and an endorsement to Beneficiary’s title policy insuring that no encumbrance exists on or affects the Property other than the Permitted Exceptions.

 (c) If (i) within one hundred eighty (180) days after the occurrence of any damage, destruction or condemnation
requiring Restoration, Trustor fails to submit to Beneficiary and receive Beneficiary’s approval of Trustor’s preliminary plans and specifications or fails to deposit with Beneficiary the additional amount necessary to accomplish the
Restoration as provided in subparagraph (a) above, or (ii) after such plans and specifications are finalized and approved by all such governmental authorities and Beneficiary, Trustor and/or Operating Lessee as applicable fails to commence
promptly or diligently continue to completion the Restoration, or (iii) Trustor and/or Operating Lessee as applicable becomes delinquent in payment to mechanics, materialmen or others for the costs incurred in connection with the Restoration,
or (iv) there exists an Event of Default, then, in addition to all of the rights herein set forth and after ten (10) days’ written notice of the nonfulfillment of one or more of these conditions, Beneficiary may apply the Restoration
Funds to reduce the Secured Indebtedness in such order as Beneficiary may determine, and at Beneficiary’s option and in its sole discretion, Beneficiary may declare the Secured Indebtedness immediately due and payable together with the
Prepayment Fee. 
 ARTICLE VIII 

REPRESENTATIONS, WARRANTIES AND COVENANTS OF TRUSTOR 

Section 8.1 ERISA. Trustor hereby represents, warrants and agrees that: (i) it is acting on its own behalf and that it
is not 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 1 of ERISA, nor a plan as defined in Section 4975(e)(1) of the
Internal Revenue Code of 1986, as amended (each of the foregoing hereinafter referred to collectively as a “Plan”); (ii) Trustor’s assets do not constitute “plan assets” of one or more such Plans within the meaning of
Department of Labor Regulation Section 2510.3-101; and (iii) it will not be reconstituted as a Plan or as an entity whose assets constitute “plan assets.” 

Section 8.2 NON-RELATIONSHIP. Neither Trustor nor any general partner, director, member or officer of Trustor nor, to
Trustor’s knowledge, any person who is a Trustor’s Constituent (as defined in Section 8.4) is (i) a director or officer of Beneficiary, (ii) a parent, son or daughter of a director or officer of Beneficiary, or a descendent
of any of them, (iii) a step parent, adopted child, stepson or step daughter of a director or officer of Beneficiary, or (iv) a spouse of a director or officer of Beneficiary. 

 

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 Section 8.3 NO ADVERSE CHANGE. Trustor represents and warrants that there has
been no material adverse change from the conditions shown in the application submitted for the Loan by Trustor (“Application”) or in the materials submitted in connection with the Application. 

Section 8.4 TRUSTOR’S REPRESENTATIONS AND WARRANTIES. 

(a) Trustor represents and warrants that it has delivered to Beneficiary true and correct copies of all Trustor’s and Operating
Lessee’s and Liable Party’s organizational documents and except for the Trustor Guaranty (as defined in Section 10.1(b)) and as expressly approved by Beneficiary in writing, there have been no changes in Trustor’s members or
Operating Lessee’s members (“Trustor’s Constituents”) since the date that the Application was executed by Trustor and Strategic Hotels & Resorts Inc. and/or its legally permitted successors and assigns (“SHRI”)
continues to Control (as defined in Section 10.4) Liable Party. 
 (b) Trustor represents and warrants that neither
Trustor, nor any of the Trustor’s Constituents, is involved in any litigation, arbitration or other proceeding nor is there any governmental investigation pending which if determined adversely would materially adversely affect Trustor’s
ability to perform in accordance with the Loan Documents, and to the best knowledge of Trustor, no such proceeding is contemplated or threatened. 

(c) Trustor represents and warrants that Trustor has received reasonably equivalent value for the granting of this Deed of Trust.

 (d) Trustor represents and warrants that neither Trustor, nor any of the Trustor’s Constituents, is involved in any
bankruptcy, reorganization, insolvency, dissolution or liquidation proceeding, and to the best knowledge of Trustor, no such proceeding is contemplated or threatened. 

(e) Trustor represents and warrants that neither Trustor nor any partner, member or stockholder of Trustor has been convicted of, or been
indicted for a felony criminal offense. 
 (f) Trustor represents and warrants that neither Trustor nor any partner, member or
stockholder of Trustor is in default under the Revolver Loan (as defined in Section 10.4) or any mortgage, deed of trust, note, loan or credit agreement. 

Section 8.5 COVENANTS AND AGREEMENTS WITH RESPECT TO LIABLE PARTY AND STRATEGIC HOTELS & RESORTS, INC. 

(a) Trustor covenants and agrees that at all times during the term of the Loan, as tested at the end of each fiscal quarter, the
Consolidated Group (as hereinafter defined in (c)(iii) below) shall be and remain in compliance with the following net worth requirement (the “Minimum Net Worth Requirements”): 

(i) (x) SHRI shall retain a Market Capitalization (as hereinafter defined in (c)(i) below) of no less than $175,000,000, and
(y) Liable Party shall be the direct or indirect beneficial owner of no less than ten (10) luxury or upper upscale hotels located in North America; or, in the event and only in the event that the requirements in this Section 8.5
(a)(i) are not met, then, 
  

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 (ii) (x) The Consolidated Group Leverage Ratio (as hereinafter defined in (c)(ii) below) of
the Consolidated Group shall be no greater than 80% and (y) Liable Party shall be the direct or indirect beneficial owner of no less than ten (10) luxury or upper upscale hotels located in North America. 

(b) In the event that Market Capitalization is determined to be less than $175,000,000 as of any reporting date required under the Loan
Documents (the “MC Determination Date”), Trustor shall have 90 days from the MC Determination Date to commission and finalize appraisals by a third party valuation firm for use in determining the Consolidated Group Leverage Ratio. The
valuation firm shall be subject to the prior written approval of Beneficiary, which approval shall not be unreasonably withheld. Notwithstanding the foregoing, appraisals which have been finalized by an approved third party valuation firm no more
than 6 months prior to the MC Determination Date calculation shall be deemed valid for the determination of the Consolidated Group Leverage Ratio calculation. 

(c) Unless otherwise specifically referenced, the following terms shall have the following meanings for purposes of this Section only:

 (i) “Market Capitalization” shall be calculated as “Consolidated Shares Outstanding” multiplied
by the “Average Share Price.” “Consolidated Shares Outstanding” shall be the sum of consolidated: (i) common shares outstanding, (ii) operating partnership units outstanding, (iii) stock options outstanding, and
(iv) restricted stock units outstanding, as detailed in the Consolidated Group’s quarterly supplemental financial information or as determined from other sources. “Average Share Price” shall be determined by calculating the
average daily closing price of SHRI common stock over the relevant quarter. 
 (ii) “Consolidated Group Leverage
Ratio” shall be calculated by dividing Total Debt by Total Consolidated Appraisal Value. “Total Debt” shall be the sum of: (i) total mortgages and other debt payable, (ii) exchangeable senior notes, net of discount, and
(iii) bank credit facility minus the lesser of $40 million or 50% of cash and cash equivalents, as detailed in the Consolidated Group’s quarterly supplemental financial information or as determined from other sources. “Total
Consolidated Appraisal Value” shall be the sum of the market value of each hotel under the ownership of the Liable Party, which is consolidated on the consolidated balance sheets on the Consolidated Group’s quarterly financial statements.
The following hotel assets are included in the Consolidated Group Leverage Ratio as of the date of the Loan : 
 Fairmont Chicago

 Fairmont Scottsdale 

Four Seasons Punta Mita 

Four Seasons Washington, D.C. 
  

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 Hyatt Regency La Jolla 

InterContinental Chicago 

InterContinental Miami 

InterContinental Prague 

Loews Santa Monica Beach Hotel 

Marriott Grosvenor Square 

Marriott Lincolnshire Resort 

Ritz-Carlton Half Moon Bay 

Ritz-Carlton Laguna Niguel 

Westin St. Francis 

(iii) “Consolidated Group” shall mean Liable Party, SHRI and their Subsidiaries (for all purposes in connection herewith, a
“Subsidiary” is for any entity, any other entity in which such first entity or a subsidiary of such entity holds capital stock and whose financial results would be consolidated under generally accepted accounting principles
(“GAAP”) with the financial results of such first entity on the consolidated financial statement of such first entity). 

(d) The provisions of this Section 8.5 shall not apply following a one time transfer of the entire Property pursuant to
Section 10.3 provided that the transferee is not an Affiliate or Close Affiliate of Trustor or Liable Party. 

Section 8.6 FOREIGN INVESTOR. Neither Trustor nor any partner, member or stockholder of Trustor is, and no legal or
beneficial interest in a partner, member or stockholder of Trustor is or will be held, directly or indirectly by, a “foreign person” within the meaning of Sections 1445 and 7701 of the Internal Revenue Code of l986, as amended and Trustor
is not a “disregarded entity” within the meaning of such Code of Regulations. 
 Section 8.7 US PATRIOT
ACT. Neither Trustor nor any partner, member or stockholder of Trustor is, and no legal of beneficial interest in a partner, member or stockholder of Trustor is or will be held, directly or indirectly, by a person or entity that appears on a
list of individuals and/or entities for which transactions are prohibited by the US Treasury Office of Foreign Assets Control or any similar list maintained by any other governmental authority, with respect to which entering into transactions with
such person or entity would violate the US Patriot Act or regulations or any Presidential Executive Order or any other similar applicable law, ordinance, order, rule or regulation. 

ARTICLE IX 

EXCULPATION AND LIABILITY 

Section 9.1 LIABILITY OF TRUSTOR. Except as expressly set forth in the balance of this Section or in the Indemnity Agreement
or Guaranty, anything contained herein or in any other Loan Documents to the contrary notwithstanding, no recourse shall be had for the payment of the principal or interest on the Note or for any other obligation hereunder or under the Loan
Documents against (i) any affiliate, parent company, trustee or advisor of Trustor, Operating Lessee or Liable Party, or owner of a direct or indirect beneficial or equitable interest in Trustor,

  

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Operating Lessee or Liable Party, any member in Trustor or Operating Lessee, or any partner, shareholder or member therein (other than against Liable Party pursuant to the Guaranty or Indemnity
Agreement or other than the Affiliated Guarantor under the Affiliated Guaranty or the Affiliated Guarantor Subordinate Mortgage); (ii) any legal representative, heir, estate, successor or assign of any thereof; (iii) any corporation (or
any officer, director, employee or shareholder thereof), individual or entity to which any ownership interest in Trustor, Operating Lessee or Liable Party shall have been transferred; (iv) any purchaser of any asset of Trustor, Operating Lessee
or Liable Party; or (v) any other Person (except Trustor and Liable Party pursuant to the Guaranty and except for the Affiliated Guarantor under the Affiliated Guaranty or the Affiliated Guarantor Subordinate Mortgage), for any deficiency or
other sum owing with respect to the Note. It is understood that the Note (except as set forth in the balance of this Section and in the Indemnity Agreement or Guaranty) may not be enforced against any person described in clauses (i) through
(v) above (other than against Liable Party pursuant to the Indemnity Agreement or Guaranty as set forth in clauses (i) and (v) above and other than the Affiliated Guarantor under the Affiliated Guaranty or the Affiliated Guarantor
Subordinate Mortgage as set forth in clauses (i) and (v) above) unless such person is independently liable for the obligations under the Loan Documents, the Indemnity Agreement, the Guaranty or other document relating to the Loan, and
Beneficiary agrees not to sue or bring any legal action or proceeding against any such person in such respect. However, nothing contained in this Section or the Loan Documents shall: 

(i) prevent recourse to the Trustor or, if and to the extent applicable, the Liable Party or the assets of Trustor, or, if and to the
extent applicable, the assets of the Liable Party, or enforcement of the Deed of Trust or other instrument or document by which Trustor is bound pursuant to the Loan Documents; 

(ii) if and to the extent applicable, prevent recourse to the Affiliated Guarantor pursuant to the Affiliated Guaranty or, if and to the
extent applicable, the enforcement of the Affiliated Guarantor Subordinate Mortgage; 
 (iii) limit Beneficiary’s rights
to institute or prosecute a legal action or proceeding or otherwise make a claim against Trustor, Operating Lessee and/or the Liable Party for damages and losses to the extent arising directly or indirectly from any of the following or against the
person or persons committing any of the following: 
 (1) fraud or intentional misrepresentation by Trustor, Operating Lessee
and/or the Liable Party, 
 (2) the misappropriation by Trustor, Operating Lessee or any affiliate of Trustor or Operating
Lessee of any proceeds (including, without limitation, any Rents, security deposits, tenant letters of credit, insurance proceeds and condemnation proceeds), including (x) the failure to pay any such amounts to Holder as and to the extent
required under the Loan Documents, (y) the collection of Rents for a period of more than 30 days in advance, and (z) such amounts received after an Event of Default and not applied to the Loan or in accordance with the Loan Documents to
operating and maintenance expenses of the Property, 
  

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 (3) the breach of any representation, warranty, covenant or indemnification provision in
the Indemnity Agreement or in the Deed of Trust with respect to Hazardous Materials, 
 (4) physical damage to the Property
from intentional waste committed by Trustor, Operating Lessee or any affiliate of Trustor or Operating Lessee, 
 (5) any and
all liabilities, obligations, losses, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees, causes of action, suits, claims, demands and adjustments of any nature or description whatsoever) which may at any
time be imposed upon, incurred by or awarded against Beneficiary, in the event (and arising out of such circumstances) that Trustor should raise any defense, counterclaim and/or allegation in any foreclosure action by Beneficiary relative to the
Property, which is found by a court of competent jurisdiction to have been raised by Trustor or Operating Lessee in bad faith or to be without basis in fact or law, 

(iv) limit Beneficiary’s rights to recover damages to the extent arising from Trustor’s or Operating Lessee’s failure to
comply with the provisions of the Deed of Trust pertaining to ERISA, 
 (v) limit Beneficiary’s rights to recover all
amounts due and payable pursuant to Sections 11.6 and 11.7 of the Deed of Trust and any amount expended by Beneficiary in connection with the foreclosure of the Deed of Trust, 

(vi) limit Beneficiary’s rights to enforce any leases entered into by Trustor or its affiliates as tenant, guarantees, or other
agreements entered into by Trustor in a capacity other than as borrower or any policies of insurance; or 
 (vii) limit
Beneficiary’s rights to recover costs and damages arising from Trustor’s or Operating Lessee’s failure to pay any Premiums or Impositions in the event Trustor is not required to deposit such amounts with Beneficiary pursuant to
Section 2.5 of the Deed of Trust. 
 (viii) (i) limit Beneficiary’s rights to recover any damages, costs, expenses or
liabilities, including reasonable attorneys’ fees, incurred by Beneficiary and arising from any breach or enforcement of any “environmental provision” (as defined in California Code of Civil Procedure Section 736, as such Section
may be amended from time to time) relating to the Property or any portion thereof; and/or (ii) in accordance with California Code of Civil Procedure Section 726.5, as such Section may be amended from time to time, limit the right of
Beneficiary to waive the security of the Deed of Trust as to any parcel of Real Property that is “environmentally impaired” or is an “affected parcel” (as such terms are defined in such Section), and as to any Personal Property
attached to such parcel, and thereafter to exercise against Trustor, to the extent permitted by such Section 726.5, the rights and remedies of an unsecured creditor, including reduction of Beneficiary’s claim against Trustor to judgment,
and any other rights and remedies permitted by law. If Beneficiary exercises the rights and remedies of an unsecured creditor in accordance with clause (ii) above, Trustor and Liable Party shall pay to Beneficiary, on demand by Beneficiary
following such exercise, all amounts owed to Beneficiary 
  

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and arising from any breach or enforcement of any “environmental provision” (as defined in California Code of Civil Procedure Section 736, as such Section may be amended from time
to time) under any Loan Document, and Trustor and the Liable Party if any, will be personally liable for the payment of all such sums. 

Section 9.2 RECOURSE LOAN. Notwithstanding the foregoing, this limitation of liability shall not apply and the Loan will be a
fully recourse Loan to Trustor and to Liable Party: 
 (a) in the event of any Transfer of the Property in violation of this
Deed of Trust or in the event Trustor or Operating Lessee enters into any indebtedness for borrowed money which is secured by a lien, security interest or other encumbrance of any part of the Property, other than the Loan and any related obligations
to Beneficiary with respect to the Loan, the Trustor Guaranty (as defined in Section 10.1(b) and the Subordinate Deed of Trust (as defined in Section 10.1(b)) or except either as allowed by the Deed of Trust or approved by Beneficiary; or,

 (b) if (i) Trustor, Operating Lessee or Liable Party commences a voluntary bankruptcy or insolvency proceeding under the
Bankruptcy Code which is not dismissed within 90 days of filing, or (ii) an involuntary case is commenced against Trustor, Operating Lessee or Liable Party under the Bankruptcy Code which is not dismissed within 90 days of filing, or
(iii) an involuntary case is commenced against Trustor or Operating Lessee under the Bankruptcy Code with the collusion of Trustor or Operating Lessee, Liable Party or any of their affiliates or related entities, or (iv) a petition for
relief is filed with respect to Trustor or Operating Lessee or Liable Party under the Bankruptcy Code through the actions of Trustor or Operating Lessee, Liable Party or any of their affiliates or related entities which is not dismissed within 90
days of filing. Notwithstanding the previous sentence, neither Trustor nor Liable Party shall be personally liable for payment of the Loan merely by reason of an involuntary bankruptcy (irrespective of its duration) as to which the following
conditions are satisfied (1) such involuntary bankruptcy is not solicited, procured or supported by Trustor or any Related Person (defined below); (2) there is no debt or other obligation and there are no creditors, in any case which are
prohibited by the Loan Documents; (3) Trustor and each Related Person in such involuntary bankruptcy proceeding will consent to and support and perform all actions requested by Beneficiary to obtain relief from the automatic stay and to obtain
adequate protection for Beneficiary; (4) none of the Trustor nor any Related Persons shall propose or in any way support any plan of reorganization which in any way modifies or seeks to modify any provisions of the Loan Documents or any of
Beneficiary’s rights under the Loan Documents; and (5) none of Trustor nor any Related Persons shall propose or consent to any use of cash collateral except with Beneficiary’s consent, which may be withheld in Beneficiary’s sole
discretion. As used herein, a “Related Person” shall mean (a) Affiliated Guarantor and any guarantor or other person or entity which is liable in any way (including contingently liable) for any part of the Loan, (b) person
or entity which has any direct or indirect interest in Trustor or in which Trustor has any direct or indirect interest, or (c) any person who, by reason of any relationship with any of the foregoing, would be reasonably expected to act in
accordance with the request of any of the foregoing. 
 (c) Notwithstanding the foregoing, Beneficiary agrees that its sole
recourse against the Operating Lessee for the Operating Lessee’s obligations hereunder or under the other Loan Documents shall be to the collateral owned by the Operating Lessee and pledged to

  

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Beneficiary pursuant to the terms of the Loan Documents; provided however, the foregoing shall not limit Beneficiary’s rights against Trustor and/or Liable Party and/or Affiliated Guarantor
with respect to the obligations of Operating Lessee to the extent otherwise permitted under the Loan Documents. 
 ARTICLE X

 SINGLE PURPOSE ENTITY; CHANGE IN OWNERSHIP, CONVEYANCE OF PROPERTY’ PROHIBITIONS ON FINANCING AND DEBT

 Section 10.1 SINGLE PURPOSE ENTITY; INDEPENDENT DIRECTOR; TRUSTOR GUARANTY AND SUBORDINATE DEED OF TRUST.

 (a) During the term of the Loan, Trustor and Operating Lessee shall each be a single purpose entity (“Single Purpose
Entity”) and the Loan Documents and Trustor’s and Operating Lessee’s organizational documents shall provide that Trustor (and Operating Lessee, if and to the extent applicable) shall not: (i) engage in business other than owning
and operating the Property; (ii) acquire or own a material asset other than the Property and incidental personal property; (iii) maintain assets in a way difficult to segregate and identify or commingle its assets with the assets of any
other person or entity; (iv) fail to hold itself out to the public as a legal entity separate from any other; (v) fail to conduct business solely in its name or fail to maintain records, accounts or bank accounts separate from any other
person or entity; (vi) file or consent to a petition pursuant to applicable bankruptcy, insolvency, liquidation or reorganization statutes, or make an assignment for benefit of creditors without the unanimous consent of its partners or members,
as applicable; (vii) except to the extent expressly permitted by this Deed of Trust, incur additional indebtedness except for trade payables in the ordinary course of business of owning and operating the Property, provided that such
indebtedness is paid within ninety (90) days of when incurred; (viii) dissolve, liquidate, consolidate, merge or sell all or substantially all of its assets (except following a transfer of the Property which is expressly permitted under
Section 10.3 or Section 10.9, and (ix) modify, amend or revise its organizational documents in a manner which would change any of the foregoing restrictions. During the term of the Loan, Trustor and Operating Lessee shall each have at
least one member (or, if Trustor or Operating Lessee is an entity other than a limited liability company, a member of its board of directors) which is not reemployed by, related to or affiliated with Trustor or any Related Entities
(“Independent Entity”) which Independent Entity shall be subject to the prior written approval of Beneficiary and any replacements or substitutions of such Independent Entity shall be subject to the prior written approval of Beneficiary.
All of the foregoing requirements of this Section 10.1(a) shall be referred to herein as the “Single Purpose Entity Covenants and Representations”. 

(b) Notwithstanding anything contained herein to the contrary, Trustor shall be authorized (i) to enter into an affiliate guaranty
for the benefit of Beneficiary (“Trustor Guaranty”) guarantying the obligations of Affiliated Guarantor to Beneficiary under the Affiliated Guarantor Loan Documents and (ii) to secure its obligations under the Trustor Guaranty by
executing and delivering a Deed of Trust, Security Agreement and Fixture Filing (the “Subordinate Deed of Trust”) encumbering the Property which shall be recorded on the Property immediately after the recordation of this Deed of Trust.

  

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 Section 10.2 CONVEYANCE OF PROPERTY, CHANGE IN OWNERSHIP AND COMPOSITION.

 (a) Trustor shall not cause or permit: (i) the Property or any interest in the Property, to be conveyed, transferred,
assigned, encumbered, sold or otherwise disposed of; or (ii) any transfer, assignment or conveyance of any interest in Trustor or in Operating Lessee or in the partners, or stockholders, or members or beneficiaries of, Trustor or Operating
Lessee or of any of Trustor’s Constituents or (iii) any merger, reorganization, dissolution or other change in the ownership structure of Trustor or Operating Lessee or any of the general partners or members of Trustor or Operating Lessee,
including, without limitation, any conversion of Trustor or Operating Lessee or any general partner or member of Trustor or Operating Lessee to a limited partnership, a limited liability partnership or a limited liability company (collectively,
“Transfers”). 
 (b) The prohibitions on transfer shall not be applicable to (i) Transfers as a result of the
death of a natural person who is Trustor; or (ii) Transfers in connection with estate planning by a natural person to a spouse, son or daughter or descendant of either, a stepson or stepdaughter or descendant of either or (iii) subject to
the applicable provisions of Article V, any sublease of space at the Leased Improvements (as defined in the Operating Lease) in accordance with the terms and conditions of the Operating Lease; or (iv) transfers of interests in SHRI, as and to
the extent permitted under Section 10.4 (b) of this Deed of Trust. 
 (c) Trustor or transferee shall pay all costs
and expenses incurred by Beneficiary in connection with any Transfer, including title insurance premiums, documentation costs and reasonable attorneys’ fees. 

Section 10.3 ONE TIME TRANSFER RIGHT. 

(a) Notwithstanding anything in this Deed of Trust to the contrary, Trustor shall have a one time right to transfer either or both of the
Property and the Affiliated Guarantor Property to a transferee (a “Permitted Transferee”), subject to the following conditions: (i) there being no Event of Default under the Loan Documents, the Indemnity Agreement, the Guaranty or
under the Affiliated Guarantor Loan Documents at the time of the transfer, (ii) Beneficiary’s approval of the transferee, in its sole and absolute discretion, (iii) the transferee shall be able to make and shall make the ERISA
representations and other representations set forth in Sections 8.1, 8.2, 8.4 (excluding clause (f)), 8.6 and 8.7 of this Deed of Trust, (iv) the cash flow, in the opinion of Beneficiary, derived from the Property and the Affiliated Guarantor
Property shall be no less than 1.5 times the annual payments required under the Loan and the Affiliated Guarantor Loan considered separately as determined by Beneficiary in its sole and absolute discretion, (v) the loan to value ratio of the
Property and the Affiliated Guarantor Property at the time of the transfer shall not be greater than 60% for each property considered separately as determined by Beneficiary in its sole and absolute discretion, (vi) if the Property is
transferred, Trustor or the transferee shall pay a fee equal to one percent (1%) of the outstanding principal balance of the Note at the time of the assumption together with a nonrefundable processing fee in the amount of $10,000.00 for each
property that is transferred, (vii) the transferee shall expressly assume the Loan Documents and the Indemnity Agreement in a manner satisfactory to Beneficiary and additional liable parties acceptable to Beneficiary shall execute the Guaranty
with respect to 
  

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events arising or occurring from and after the date of the transfer, which additional liable parties must have (in the aggregate if more than one) a net worth of not less than $600,000,000.00,
(viii) the transferee must be experienced in the ownership, management and leasing of properties similar to the Property, (ix) Trustor or transferee shall pay all costs and expenses incurred by Beneficiary in connection with the transfer,
including title insurance premiums, documentation costs and reasonable attorneys’ fees, and (x) if the Loan has been securitized, Beneficiary shall have received confirmation that the assumption of the Loan by the transferee will not
result in an adverse change in the rating of the Securities by the Rating Agency. No such transfer shall release Trustor or Liable Party from their obligations under the Loan Documents, the Indemnity Agreement or the Guaranty or Affiliated Guarantor
under the Affiliated Guaranty with respect to events arising or occurring prior to the date of transfer but Trustor and Liable Party shall be released with respect to events arising or occurring after the date of transfer and the Affiliated
Guarantor shall not be liable for any events arising or occurring after the date of such transfer. Beneficiary, in its reasonable discretion, may elect to document the assumption of the Loan with a new Promissory Note, Deed of Trust and such other
transaction documents (“New Loan Documents”) as it reasonably deems necessary or desirable to be executed by such transferee, which New Loan Documents shall contain terms substantially identical to the terms of the existing Loan Documents,
except as modified to reflect the transaction. 
 (b) Upon exercise of the right to transfer the Property to a Permitted
Transferee pursuant to this Section 10.3, the Trustor Guaranty shall be released and the Subordinate Deed of Trust reconveyed as provided in Section 10.9. 

Section 10.4 OTHER PERMITTED TRANSFERS 

(a) Notwithstanding anything in this Deed of Trust to the contrary, (1) under no circumstances shall there be any restriction or
limitation with respect to the transfer of any direct or indirect legal, beneficial, or direct or indirect equitable interest in SHRI, and (2) subject to the terms and provisions of this Section, there shall be no restriction or limitation in
any respect to (and no Event of Default shall result or arise from) the sale, assignment, conveyance, or transfer, mortgage, hypothecation or other disposition or other encumbering of any direct or indirect legal, beneficial or direct or indirect
equitable interest in Liable Party or any person or entity owning a direct or indirect interest therein provided that: 
 (i)
Trustor shall provide Beneficiary with notice of such transaction simultaneously with its occurrence; 
 (ii) at all times,
prior to a transfer pursuant to Section 10.3(a), and execution of a guaranty by a new liable party, Strategic Hotel Funding, L.L.C. remains the Liable Party under the Loan, and the Liable Party or a Close Affiliate of Liable Party Controls
Trustor and Operating Lessee; 
 (iii) at all times, SHRI shall (a) own at least seventy-five percent (75%) of the
equity of Liable Party and shall Control the Liable Party and (b) the Consolidated Group shall be in compliance with the Minimum Net Worth Requirements; 
  

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 (iv) if there shall be a pledge, hypothecation or other encumbering of a direct or indirect
ownership interest in Liable Party or any person or entity owning a direct or indirect interest therein (collectively, “Pledge”), such Pledge shall be in connection only with financing provided by a Qualified Institutional Lender (as
defined below), and any transfer of any direct or indirect legal, beneficial or direct or indirect equitable interest in Liable Party or any person or entity owning a direct or indirect interest therein as a result of default under such financing
shall be to a Qualified Institutional Lender; and 
 (v) Trustor or transferee shall pay all costs and expenses incurred by
Beneficiary in connection with the transfer, including title insurance premiums, documentation costs and reasonable attorneys’ fees. 

(b) Specifically, subject to the conditions of sub-clauses (i) through (v) of Section 10.4 (a) above, the provisions
of Section 10.2 and Section 10.5 shall not apply to the Revolver Loan (as hereinafter defined) or any guaranty thereof or pledge of ownership interest in Liable Party or its Affiliates in connection therewith in favor of the lenders
thereunder. “Revolver Loan” shall mean that certain revolving credit facility from various financial institutions, as lenders, Deutsche Bank Trust Company of Americas as Administrative Agent and Deutsche Bank Securities Inc. and Citigroup
Global Markets Inc., as Co-Lead Arrangers and Joint Book Running Managers to Strategic Hotel Funding, L.L.C., evidenced by that certain Credit Agreement, dated as of March 9, 2007, as the same may be amended, restated, supplemented or otherwise
modified or replaced from time to time, which Revolver Loan shall not at any time be secured by a lien, pledge or security interest or other encumbrance of any part of the Property and/or Trustor. 

(c) Unless otherwise specifically referenced, the following terms shall have the following meanings for purposes of this Section only:

 (i) “Affiliate” shall mean a Person or Persons directly or indirectly, through one or more intermediaries,
that Controls, is Controlled by or is under common Control with the Person or Persons in question. 
 (ii)
“Control” and “Controlling” shall mean the ability, directly or indirectly, whether through the ownership of voting securities, by contract, or otherwise (including by being a managing member, general partner,
officer or director of the person or entity in question), to both (A) direct or cause the direction of the management and policies of the Person in question, and (B) conduct the day-to-day business operations of the Person in question.

 (iii) “Close Affiliate” shall mean with respect to any Person (the “First Person”) any
other Person (each, a “Second Person”) which is an Affiliate of the First Person and in respect of which any of the following are true: (a) the Second Person owns, directly or indirectly, at least 75% of all of the legal,
beneficial and/or equitable interest in such First Person, (b) the First Person owns, directly or indirectly, at least 75% of all of the legal, beneficial and/or equitable interest in such Second Person, or (c) a third Person owns,
directly or indirectly, at least 75% of all of the legal, beneficial and/or equitable interest in both the First Person and the Second Person. 
  

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 (iv) “Qualified Institutional Lender” shall mean any insurance company,
bank, investment bank, savings and loan association, trust company, commercial credit corporation, pension plan, pension fund or pension fund advisory firm, mutual fund or other investment company, government entity or plan, or real estate
investment trust, in each case having, together with their Close Affiliates, at least one billion dollars ($1,000,000,000) in capital/statutory surplus, shareholder’s equity or net worth, as applicable, (the “Lender Net
Worth Requirement”) and being experienced in making commercial real estate loans or otherwise investing in commercial real estate; provided, however, if a loan is made or credit is otherwise extended by a syndicate or group of lenders,
then and in such event, more than fifty percent (50%) of the loan must be held by entities (including their Close Affiliates) that each meet the Lender Net Worth Requirement. 

Section 10.5 PROHIBITION ON SUBORDINATE FINANCING. Except as and to the extent expressly permitted in
Section 10.4 or Section 10.6, Trustor shall not incur or permit the incurring of (i) any financing in addition to the Loan and the Trustor Guaranty that is secured by a lien, security interest or other encumbrance of any part of the
Property or (ii) any pledge or encumbrance of a partnership, member or shareholder or beneficial interest in Trustor.  

Section 10.6 PERMITTED DEBT. Trustor and Operating Lessee shall be allowed to incur the following indebtedness and
obligations (herein “Permitted Debt”), which other than the Loan and the Trustor Guaranty under the following clause (i) shall not be secured by the Property: (i) the Loan and any related obligations to Beneficiary under the Loan
Documents and the Trustor Guaranty and Subordinate Deed of Trust, (ii) unsecured amounts payable for or in respect of the operation of the Property incurred in the ordinary course of Trustor’s business (“Trade Payables”), paid by
Trustor within sixty (60) days of incurrence, provided that in no event shall the aggregate amount of such Trade Payables incurred by Trustor exceed three percent (3%) of the aggregate Loan Amount, (iii) purchase money indebtedness
and capital lease obligations incurred in the ordinary course of business and operation of the Property, but in no event shall the annual scheduled debt service on such indebtedness or obligations exceed the aggregate amount of Six Hundred Thousand
Dollars ($600,000.00), (iv) any management fees accrued in accordance with the terms of the Management Agreement but which are not yet due and payable, (v) Impositions not yet due and payable or delinquent or which are being diligently
contested in good faith in accordance with the terms and conditions of Section 2.4 of the Deed of Trust, and (vi) indebtedness relating to liens in respect of property or assets imposed by law which were incurred in the ordinary course of
business, such as carriers’, warehousemen’s, landlord’s, mechanic’s, materialmen’s, repairmen’s and other similar liens arising in the ordinary course of business, and liens for workers’ compensation, unemployment
insurance and similar programs, in each case arising in the ordinary course of business which are either not yet due and payable or being diligently contested in good faith in accordance with Section 2.4 of the Deed of Trustt. In addition,
Trustor shall be allowed to enter into guarantees or provide similar assurances or undertakings in favor of the Manager with respect to the obligations of the Operating Lessee under the Management Agreement provided that such obligations shall not
be secured by any mortgage or other lien on the Property except as may be permitted in this Deed of Trust. 
  

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 Section 10.7 PERMITTED LIENS. Trustor and Operating Lessee shall be allowed to
create, suffer to exist or otherwise permit the following encumbrances or other liens with respect to the Property (“Permitted Liens”) subject to the terms of the Loan Documents as to priority thereof: (i) the liens and security
interests created by the Loan Documents, (ii) those property specific exceptions to title recorded in the real estate records of the County and contained in Schedule B-1 of the title insurance policy or policies which have been approved by
Beneficiary as of the Execution Date (“Permitted Exceptions”) (iii) liens, if any, for Impositions not yet due and payable or delinquent or which are being diligently contested in good faith in accordance with the terms and conditions
of Section 2.4 of the Deed of Trust, (iv) liens in respect of property or assets imposed by law which were incurred in the ordinary course of business, such as carriers’, warehousemen’s, landlord’s, mechanic’s,
materialmen’s, repairmen’s and other similar liens arising in the ordinary course of business, and liens for workers’ compensation, unemployment insurance and similar programs, in each case arising in the ordinary course of business
which are either not yet due and payable or being diligently contested in good faith in accordance with the Deed of Trust, (v) Leases and the Management Agreement, (vi) easements, rights of way, or restrictions incurred or entered into by
Trustor and/or Operating Lessee as applicable in the ordinary course of business, which in each case could not be reasonably expected to have a material adverse effect, do not diminish in any material respect the value of the Property or affect in
any material respect the validity, enforceability or priority of the liens created by the Loan Documents, (vii) liens securing indebtedness permitted under clause (iii) of the definition of Permitted Debt in Section 10.6, so long as
such lien is only in respect of the specific property relating to such obligation and notwithstanding the introductory clause to Section 10.6 to the contrary, is not secured by other portions of the Property, (viii) deposits securing or in
lieu of surety, appeal or custom bonds in processing to which Trustor and/or Operating Lessee as applicable is a party, (ix) any judgment lien provided that the judgment it secures shall have been discharged of record or the execution thereof
stayed pending appeal within thirty (30) days after entry thereof or within thirty (30) days after the expiration of any stay, as applicable in either case provided there is no imminent risk of forfeiture during such thirty (30) day
period, and (x) such other title and survey exceptions as Beneficiary has approved or may approve in writing. 

Section 10.8 RESTRICTIONS ON ADDITIONAL OBLIGATIONS. Except as and to the extent expressly provided to the contrary herein,
during the term of the Loan, Trustor and/or Operating Lessee as applicable shall not, without the prior written consent of Beneficiary, become liable with respect to any indebtedness or other obligation except for (i) the Loan, (ii) Leases
entered into in the ordinary course of owning and operating the Property for the Use, (iii) other liabilities incurred in the ordinary course of owning and operating the Property for the Use but excluding any loans or borrowings,
(iv) liabilities or indebtedness disclosed in writing to and approved by Beneficiary on or before the Execution Date, (v) any other single item of indebtedness or liability which does not exceed $25,000.00 or, when aggregated with other
items or indebtedness or liability, does not exceed $100,000.00, and (vi) Permitted Debt. 
 Section 10.9 RELEASE
OF TRUSTOR GUARANTY. The obligations of Trustor under the Trustor Guaranty shall terminate and the Subordinate Deed of Trust shall be released and reconveyed (“Trustor Guaranty Termination”) upon the first to occur of: 

(i) The full payment and satisfaction of all obligations of Trustor under the Note, the Deed of Trust and the Loan Documents and all
obligations of Affiliated Guarantor under the Affiliated Guarantor Loan Documents in accordance with their respective terms. 
  

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 (ii) The exercise of the transfer right pursuant to and in accordance with
Section 10.3 of the Deed of Trust with respect to either or both of the Property or the Affiliated Guarantor Property. 

(iii) The occurrence of the events described in either Section 10.9(ii) or Section 10.9(iv) of the Affiliated Guarantor
Mortgage. 
 (iv) The full payment and satisfaction of all obligations of Trustor under the Loan Documents in connection with a
sale of the Property and the prepayment of the Note; provided, however, that in the event of such full payment and satisfaction, all of the following conditions precedent to the Trustor Guaranty Termination shall have occurred and be true at the
time of the Trustor Guaranty Termination: 
 (1) There shall be no pending Event of Default under the Loan Documents or the
Affiliated Guarantor Loan Documents; 
 (2) The loan-to-value ratio (“Loan to Value Ratio”) for the Affiliated
Guarantor Property encumbered by the Affiliated Guarantor Mortgage shall not be greater than 60% as determined by Beneficiary in its sole and absolute discretion; provided however, that a principal reduction payment may be made under the Affiliated
Guarantor Note in accordance with the terms of the Affiliated Guarantor Note, including the payment of any applicable prepayment fee, in order to meet the Loan to Value Ratio; 

(3) The debt service coverage ratio for the Affiliated Guarantor Property encumbered by the Affiliated Guarantor Mortgage (the
“DSC”) shall not be less than 1.50x as determined by Beneficiary in its sole and absolute discretion; provided however, that a principal reduction payment may be made under the Affiliated Guarantor Note in accordance with the terms of the
Affiliated Guarantor Note, including the payment of any applicable prepayment fee, in order to meet the DSC; and, 
 (v)
Trustor shall pay all costs and expenses incurred by Beneficiary in connection with the Trustor Guaranty Termination and the release of the Subordinate Deed of Trust, including without limitation, documentation costs, and reasonable attorneys’
fees. 
 Section 10.10 STATEMENTS REGARDING OWNERSHIP. Trustor agrees to submit or cause to be submitted to
Beneficiary within thirty (30) days after December 3lst of each calendar year during the term of this Deed of Trust and ten (10) days after any written request by Beneficiary, a sworn, notarized certificate, signed by an authorized
(i) individual who is Trustor or one of the individuals comprising Trustor, (ii) member of Trustor, (iii) partner of Trustor or (iv) officer of Trustor, as the case may be, stating whether (x) any part of the Property, or
any interest in the Property, has been conveyed, transferred, assigned, encumbered, or sold, and if so, to whom; (y) any conveyance, transfer, pledge or encumbrance of any interest in Trustor has been made by Trustor and if so, to whom; or
(z) there has been any change in the individual(s) comprising Trustor or in the partners, members stockholders or beneficiaries of Trustor from those on the Execution Date, and if so, a description of such change or changes. 

 

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 ARTICLE XI 

DEFAULTS AND REMEDIES 

Section 11.1 EVENTS OF DEFAULT. Any of the following shall be deemed to be a material breach of Trustor’s covenants in
this Deed of Trust and shall constitute a default (“Event of Default”): 
 (a) The failure of Trustor (i) to pay
any installment of principal, interest or principal and interest, any required escrow deposit, or any other sum required to be paid under any Loan Document, whether to Beneficiary or otherwise, within seven (7) days of the due date of such
payment or (ii) to pay or cause to be paid any amounts as and when due to Manager under the Management Agreement prior to the expiration of any grace period provided in the Management Agreement; 

(b) The failure of Trustor or Operating Lessee as applicable to perform or observe any of the other terms, covenants or conditions of
this Deed of Trust not specified in Section 11.1(a) for thirty (30) days after notice; provided, however, that if such non-monetary default is susceptible of cure but cannot reasonably be cured within such thirty
(30) day period and Trustor or Operating Lessee 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 an additional period of time as is reasonably necessary for Trustor or Operating Lessee in the exercise of due diligence to cure such default, but the aggregate cure period under this clause (b) shall not exceed ninety
(90) days; 
 (c) The filing by Trustor and/or Operating Lessee as applicable or one of the Liable Party (an
“Insolvent Entity”) of a voluntary petition or application for relief in bankruptcy, the filing against an Insolvent Entity of an involuntary petition or application for relief in bankruptcy which is not dismissed within sixty
(60) days, or an Insolvent Entity’s adjudication as a bankrupt or insolvent, or the filing by an Insolvent Entity of any petition, application for relief or answer seeking or acquiescing in any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief for itself under any present or future federal, state or other statute, law, code or regulation relating to bankruptcy, insolvency or other relief for debtors, or an Insolvent Entity’s
seeking or consenting to or acquiescing in the appointment of any trustee, custodian, conservator, receiver or liquidator of an Insolvent Entity or of all or any substantial part of the Property or of any or all of the Rents and Profits, or the
making by an Insolvent Entity of any general assignment for the benefit of creditors, or the admission in writing by an Insolvent Entity of its inability to pay its debts generally as they become due; 

(d) If any representation, warranty certification, financial statement or other information furnished by Trustor, Operating Lessee or
Liable Party herein or in any other Loan Document shall be materially false or materially misleading as of the date the representation or warranty was made and, such materially false or materially misleading representation, warranty certification,
financial statement or other information is not cured within thirty (30) days after receipt by Trustor of notice thereof; 
  

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 (e) If Trustor and/or Operating Lessee as applicable shall suffer or permit the Property, or
any part of the Property, to be used in a manner that might (1) impair Trustor’s title to the Property, (2) create rights of adverse use or possession, or (3) constitute an implied dedication of any part of the Property;

 (f) If an Event of Default occurs under the Guaranty; 

(g) If an Event of Default occurs under the Affiliated Guaranty or the Affiliated Guarantor Subordinate Mortgage; 

(h) If an Event of Default occurs under the Management Agreement with respect to Trustor and or Operating Lessee, as applicable;

 (i) If an Event of Default occurs under the Operating Lease with respect to Trustor or Operating Lessee; 

(j) If an Event of Default occurs under the Owner Agreement with respect to Trustor or Operating Lessee or Manager; or, 

(k) If Trustor or Liable Party shall default under the Indemnity Agreement. 

Section 11.2 REMEDIES UPON DEFAULT. Upon the happening of an Event of Default, the Secured Indebtedness shall, at the option
of Beneficiary, become immediately due and payable, without further notice or demand, and Beneficiary may undertake any one or more of the following remedies: 

(a) Foreclosure. Institute a foreclosure action in accordance with the law of the State, or take any other action as may be
allowed, at law or in equity, for the enforcement of the Loan Documents and realization on the Property or any other security afforded by the Loan Documents. In the case of a judicial proceeding, Beneficiary may proceed to final judgment and
execution for the amount of the Secured Indebtedness owed as of the date of the judgment, together with all costs of suit, reasonable attorneys’ fees and interest on the judgment at the maximum rate permitted by law from the date of the
judgment until paid. If Beneficiary is the purchaser at the foreclosure sale of the Property, the foreclosure sale price shall be applied against the total amount due Beneficiary; and/or 

(b) Power of Sale. Institute a non-judicial foreclosure proceeding in compliance with applicable law in effect on the date
foreclosure is commenced for the Trustee to sell the Property either as a whole or in separate parcels as Beneficiary may determine at public sale or sales to the highest bidder for cash, in order to pay the Secured Indebtedness. If the Property is
sold as separate parcels, Beneficiary may direct the order in which the parcels are sold. Trustee shall deliver to the purchaser a Trustee’s deed or deeds without covenant or warranty, express or implied. Trustee may postpone the sale of all or
any portion of the Property by public announcement at the time and place of sale, and from time to time may further postpone the sale by public announcement in accordance with applicable law; and/or 

 

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 (c) Entry. Enter into possession of the Property, lease the Improvements, collect all
Rents and Profits and, after deducting all costs of collection and administration expenses, apply the remaining Rents and Profits in such order and amounts as Beneficiary, in Beneficiary’s sole discretion, may elect to the payment of
Impositions, operating costs, costs of maintenance, restoration and repairs, Premiums and other charges, including, but not limited to, costs of leasing the Property and fees and costs of counsel and receivers, and in reduction of the Secured
Indebtedness; and/or 
 (d) Receivership. Have a receiver appointed to enter into possession of the Property, lease the
Property, collect the Rents and Profits and apply them as the appropriate court may direct. Beneficiary shall be entitled to the appointment of a receiver without the necessity of proving either the inadequacy of the security or the insolvency of
Trustor and/or Operating Lessee as applicable or any of the Liable Party. Trustor and Liable Party shall be deemed to have consented to the appointment of the receiver. The collection or receipt of any of the Rents and Profits by Beneficiary or any
receiver shall not affect or cure any Event of Default. Beneficiary’s rights hereunder include its rights under California Code of Civil Procedure Section 564, as such Section may be amended from time to time; and/or 

(e) Action for Breach of Contract. In accordance with California Code of Civil Procedure Section 736, as such Section may be
amended from time to time, Beneficiary may bring an action for breach of contract against Trustor for breach of any “environmental provision” (as such term is defined in such Section) made by Trustor herein or in any other Loan Document,
for the recovery of damages and/or for the enforcement of the environmental provision; and/or 
 (f) Waiver of Security.
In accordance with California Code of Civil Procedure Section 726.5, as such Section may be amended from time to time, Beneficiary may waive the security of this Deed of Trust as to any parcel of Real Property that is “environmentally
impaired” or is an “affected parcel” (as such terms are defined in such Section), and as to any Personal Property attached to such parcel, and thereafter exercise against Trustor, to the extent permitted by such Section 726.5,
the rights and remedies of an unsecured creditor, including reduction of Beneficiary’s claim against Trustor to judgment, and any other rights and remedies permitted by law. Trustor and Beneficiary acknowledge that pursuant to California Code
of Civil Procedure Section 726.5, Beneficiary’s rights under this Section 11.2 are limited to instances in which Trustor or any affiliate, agent, co-tenant, partner or joint venturer of Trustor either (i) caused, contributed to,
permitted or acquiesced in the release (as defined in such Section 726.5) or threatened release of Hazardous Materials, or (ii) had actual knowledge or notice of such release or threatened release prior to the execution and delivery of
this Deed of Trust and failed to disclose such release or threatened release to Beneficiary in writing after Beneficiary’s written request for information concerning the environmental condition of the Property, unless Beneficiary otherwise
obtained actual knowledge of such release or threatened release prior to the execution and delivery of this Deed of Trust. 

Section 11.3 APPLICATION OF PROCEEDS OF SALE. In the event of a sale of the Property pursuant to Section 11.2 of this
Deed of Trust, to the extent permitted by law, the Beneficiary shall determine in its sole discretion the order in which the proceeds from the sale shall be applied to the payment of the Secured Indebtedness, including without limitation, the
expenses of the sale and of all proceedings in connection with the sale, including reasonable attorneys’ fees and expenses; Impositions, Premiums, liens, and other charges and expenses; the outstanding principal balance of the Secured
Indebtedness; any accrued interest; any Prepayment Fee; and any other amounts owed under any of the Loan Documents. 
  

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 Section 11.4 WAIVER OF JURY TRIAL. To the fullest extent permitted by law,
including laws enacted after the Execution Date, Trustor and Beneficiary HEREBY WAIVE THEIR RESPECTIVE RIGHT TO TRIAL BY JURY in any action, proceeding and/or hearing on any matter whatsoever arising out of, or in any way connected with, the Note,
this Deed of Trust or any of the Loan Documents, or the enforcement of any remedy under any law, statute, or regulation. Neither party will seek to consolidate any such action in which a jury has been waived, with any other action in which a jury
trial cannot or has not been waived. Each party has received the advice of counsel with respect to this waiver. 

Section 11.5 BENEFICIARY’S RIGHT TO PERFORM TRUSTOR’S OBLIGATIONS. Trustor agrees that, if Trustor and/or Operating
Lessee as applicable fails to perform any act or to pay any money which Trustor and/or Operating Lessee as applicable is required to perform or pay under the Loan Documents, Beneficiary may make the payment or perform the act at the cost and expense
of Trustor and in Trustor’s name or in its own name. Any money paid by Beneficiary under this Section 11.5 shall be reimbursed to Beneficiary in accordance with Section 11.6. 

Section 11.6 BENEFICIARY REIMBURSEMENT. All payments made, or funds expended or advanced by Beneficiary pursuant to the
provisions of any Loan Document, shall (1) become a part of the Secured Indebtedness, (2) bear interest at the Interest Rate (as defined in the Note) from the date such payments are made or funds expended or advanced, (3) become due
and payable by Trustor upon demand by Beneficiary, and (4) bear interest at the Default Rate (as defined in the Note) from the date of such demand. Trustor shall reimburse Beneficiary within ten (10) days after receipt of written demand
for such amounts. 
 Section 11.7 FEES AND EXPENSES. If Beneficiary becomes a party (by intervention or otherwise)
to any action or proceeding affecting, directly or indirectly, Trustor, the Property or the title thereto or Beneficiary’s interest under this Deed of Trust, or employs an attorney to collect any of the Secured Indebtedness or to enforce
performance of the obligations, covenants and agreements of the Loan Documents, Trustor shall reimburse Beneficiary in accordance with Section 11.6 for all expenses, costs, charges and legal fees incurred by Beneficiary (including, without
limitation, the fees and expenses of experts and consultants), whether or not suit is commenced. 
 Section 11.8 WAIVER
OF CONSEQUENTIAL DAMAGES. Trustor covenants and agrees that in no event shall Beneficiary be liable for consequential damages, and to the fullest extent permitted by law, Trustor expressly waives all existing and future claims that it may have
against Beneficiary for consequential damages. 
 Section 11.9 INDEMNIFICATION OF TRUSTEE. Except for gross
negligence and willful misconduct, Trustee shall not be liable for any act or omission or error of judgment. Trustee may rely on any document believed by it in good faith to be genuine. All money received by Trustee shall be held in trust, but need
not be segregated (except to the extent required by law), until used or applied as provided in this Deed of Trust. Trustee shall not be liable for interest on the money. Trustor shall protect, indemnify and hold harmless Trustee against all
liability and expenses which Trustee may incur in the performance of its duties. 
  

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 Section 11.10 ACTIONS BY TRUSTEE. At any time, upon written request of
Beneficiary and presentation of this Deed of Trust and the Note for endorsement, and without affecting the personal liability of any entity or the Liable Party for payment of the Secured Indebtedness or the effect of this Deed of Trust upon the
remainder of the Property, Trustee may take such actions as Beneficiary may request which are permitted by this Deed of Trust or by applicable law. 

Section 11.11 SUBSTITUTION OF TRUSTEE. Beneficiary has the power and shall be entitled, at any time and from time to time, to
remove Trustee or any successor trustee and to appoint another trustee in the place of Trustee or an successor trustee, by an instrument recorded in the Official Records of the county or counties where the Property is located. The recorded
instrument shall be conclusive proof of the proper substitution and appointment of the successor Trustee without the necessity of any conveyance from the predecessor Trustee. 

ARTICLE XII 

TRUSTOR AGREEMENTS AND FURTHER ASSURANCES 

Section 12.1 PARTICIPATION AND SALE OF LOAN. 

(a) Beneficiary may, at any time and from time to time, sell, transfer or assign all or any portion of the Loan, and its servicing rights
with respect to the Loan, grant one or more participation interests in the Loan and the Loan Documents. Beneficiary may issue mortgage pass-through certificates or other securities evidencing a beneficial interest in a rated or unrated public
offering or private placement, including depositing the Loan Documents with a trust that may issue securities (the “Securities”)(such issuance of Securities is referred to as a “Securitization”). Beneficiary shall use
commercially reasonable efforts to provide Trustor 30 days advance notice of any securitization. Beneficiary may forward to each purchaser, transferee, assignee, servicer, participant, investor in such Securities (collectively, the
“Investor”) or any Rating Agency rating such Securities and each prospective Investor, all documents and information which Beneficiary now has or may hereafter acquire relating to the Secured Indebtedness and to Trustor or any Liable Party
and the Property, whether furnished by Trustor, any Liable Party or otherwise, as Beneficiary determines necessary or desirable. Beneficiary agrees to use commercially reasonable to maintain the confidentiality of any financial information with
respect to Trustor and/or Liable Party which Trustor advises Beneficiary is confidential and not publicly available at the time it is provided to Beneficiary; provided however such obligation to maintain the confidentiality of such financial
information with respect to Trustor, and/or Liable Party shall terminate if and when, through no fault of Beneficiary, the information ceases to be confidential. 

(b) Beneficiary, without in any way limiting Beneficiary’s other rights hereunder, in its sole and absolute discretion, shall have
the right to divide the Loan into two or more tranches which may be evidenced by two or more notes, which notes may be pari passu or senior/subordinate, provided that (i) the aggregate principal amount of the notes immediately

  

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following such division shall equal the outstanding principal balance of the Loan and (ii) the weighted average interest rate of the Loan immediately following such division shall equal the
interest rate which was applicable to the Loan immediately prior to such division. Trustor shall cooperate with reasonable requests of Beneficiary in order to divide the Loan and shall execute and deliver such documents as shall reasonably be
required by Beneficiary in connection therewith, including, without limitation, new notes to replace the original Note, all in form and substance reasonably satisfactory to Beneficiary, provided that such documents shall contain terms, provisions
and clauses (x) no less favorable to Trustor than those contained herein and in the Note, and (y) which do not increase Trustor’s obligations hereunder or decrease Trustor’s rights under the Loan Documents. If Beneficiary
redefines the interest rate, the amount of interest payable under the modified notes, in the aggregate, shall at all times equal the amount of interest which would have been payable under the Note at the Interest Rate. In the event Trustor fails to
execute and deliver such documents to Beneficiary within five (5) Business Days following such request by Beneficiary, Trustor hereby absolutely and irrevocably appoints Beneficiary 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, Trustor ratifying all that such attorney shall do by virtue thereof. 

(c) Trustor and Liable Party will cooperate with Beneficiary and the Rating Agencies in furnishing such information and providing such
other assistance, reports and legal opinions as Beneficiary may reasonably request in connection with any of the foregoing transactions. In addition, Trustor acknowledges that Beneficiary may release or disclose to potential purchasers or
transferees of the Loan, or potential participants in the Loan, originals or copies of the Loan Documents, title information, engineering reports, financial statements, operating statements, appraisals, Leases, rent rolls, and all other materials,
documents and information in Beneficiary’s possession or which Beneficiary is entitled to receive under the Loan Documents, with respect to the Loan, Trustor, Liable Party or the Property. Trustor shall also furnish to such Investors or such
prospective Investors or such Rating Agency any and all information concerning the Property, the Leases, the financial condition of Trustor or any Liable Party as may be requested by Beneficiary, any Investor or any prospective Investor or any
Rating Agency in connection with any sale, transfer or participation interest. 
 (d) Notwithstanding the foregoing, Trustor and
Operating Lessee will not in any event be required to incur, suffer or accept (except to a de minimis extent) (i) any lesser rights or greater obligations than as currently set forth in the Loan Documents and (ii) any expense or any
liability in connection with such transfers described in this Section 12.1. 
 Section 12.2 REPLACEMENT OF
NOTE. Upon notice to Trustor of the loss, theft, destruction or mutilation of the Note, Trustor will execute and deliver, in lieu of the original Note, a replacement note, identical in form and substance to the Note and dated as of the Execution
Date. Upon the execution and delivery of the replacement note, all references in any of the Loan Documents to the Note shall refer to the replacement note. 

Section 12.3 TRUSTOR’S ESTOPPEL. Within ten (10) days after receipt of a written request by Beneficiary, Trustor
shall furnish an acknowledged written statement in form satisfactory to Beneficiary (i) setting forth the amount of the Secured Indebtedness, (ii) stating either that no offsets or defenses exist against the Secured Indebtedness, or if any
offsets or 
  

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defenses are alleged to exist, their nature and extent, (iii) whether any default then exists under the Loan Documents, the Management Agreement or the Operating Lease or any event has
occurred and is continuing, which, with the lapse of time, the giving of notice, or both, would constitute such a default, and (iv) any other matters as Beneficiary may reasonably request. If Trustor does not furnish an estoppel certificate
within the 10-day period, Trustor appoints Beneficiary as its attorney-in-fact to execute and deliver the certificate on its behalf, which power of attorney shall be coupled with an interest and shall be irrevocable. 

Section 12.4 FURTHER ASSURANCES. Trustor shall, without expense to Beneficiary and/or Trustee, execute, acknowledge and
deliver all further acts, deeds, conveyances, mortgages, deeds of trust, assignments, security agreements, and financing statements as Beneficiary and/or Trustee shall from time to time reasonably require, to assure, convey, assign, transfer and
confirm unto Beneficiary and/or Trustee the Property and rights conveyed or assigned by this Deed of Trust or which Trustor may become bound to convey or assign to Beneficiary and/or Trustee, or for carrying out the intention or facilitating the
performance of the terms of this Deed of Trust or any of the other Loan Documents, or for filing, refiling, registering, reregistering, recording or rerecording this Deed of Trust. If Trustor fails to comply with the terms of this Section,
Beneficiary may, at Trustor’s expense, perform Trustor’s obligations for and in the name of Trustor, and Trustor hereby irrevocably appoints Beneficiary as its attorney-in-fact to do so. The appointment of Beneficiary as attorney-in-fact
is coupled with an interest. 
 Section 12.5 SUBROGATION. Beneficiary shall be subrogated to the lien of any and all
encumbrances against the Property paid out of the proceeds of the Loan and to all of the rights of the recipient of such payment. 

ARTICLE XIII 

SECURITY AGREEMENT 

Section 13.1 SECURITY AGREEMENT. 

THIS DEED OF TRUST CREATES A LIEN ON THE PROPERTY IN ADDITION, TO THE EXTENT THE PROPERTY IS PERSONAL PROPERTY OR FIXTURES UNDER
APPLICABLE LAW, THIS DEED OF TRUST CONSTITUTES A SECURITY AGREEMENT UNDER THE CALIFORNIA UNIFORM COMMERCIAL CODE (THE “U.C.C.”) AND ANY OTHER APPLICABLE LAW AND IS FILED AS A FIXTURE FILING. UPON THE OCCURRENCE OF AN EVENT OF DEFAULT,
BENEFICIARY MAY, AT ITS OPTION, PURSUE ANY AND ALL RIGHTS AND REMEDIES AVAILABLE TO A SECURED PARTY WITH RESPECT TO ANY PORTION OF THE PROPERTY, AND/OR BENEFICIARY MAY, AT ITS OPTION, PROCEED AS TO ALL OR ANY PART OF THE PROPERTY IN ACCORDANCE WITH
BENEFICIARY’S RIGHTS AND REMEDIES WITH RESPECT TO THE LIEN CREATED BY THIS DEED OF TRUST. THIS FINANCING STATEMENT SHALL REMAIN IN EFFECT AS A FIXTURE FILING UNTIL THIS DEED OF TRUST IS RELEASED OR SATISFIED OF RECORD. 

 

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 Section 13.2 REPRESENTATIONS AND WARRANTIES. 

Trustor warrants, represents and covenants as follows: 

(a) Trustor and/or Operating Lessee as applicable owns the Personal Property free from any lien, security interest, encumbrance or adverse
claim, except as otherwise expressly approved by Beneficiary in writing or as otherwise allowed hereunder. Trustor will notify Beneficiary of, and will protect, defend and indemnify Beneficiary against, all claims and demands of all persons at any
time claiming any rights or interest in the Personal Property contrary to the preceding sentence. 
 (b) The Personal Property
has not been used and shall not be used or bought for personal, family, or household purposes, but shall be bought and used solely for the purpose of carrying on Trustor’s and/or Operating Lessee’s as applicable, business. 

(c) Trustor and/or Operating Lessee as applicable will not remove the Personal Property without the prior written consent of Beneficiary,
except the items of Personal Property which are consumed or worn out in ordinary usage shall be promptly replaced by Trustor and/or Operating Lessee as applicable with other Personal Property of value equal to or greater than the value of the
replaced Personal Property. 
 Section 13.3 CHARACTERIZATION OF PROPERTY. The grant of a security interest to
Beneficiary in this Deed of Trust shall not be construed to limit or impair the lien of this Deed of Trust or the rights of Beneficiary with respect to any property which is real property or which the parties have agreed to treat as real property.
To the fullest extent permitted by law, everything used in connection with the production of Rents and Profits is, and at all times and for all purposes and in all proceedings, both legal and equitable, shall be regarded as real property,
irrespective of whether or not the same is physically attached to the Land and/or Improvements. 
 Section 13.4
PROTECTION AGAINST PURCHASE MONEY SECURITY INTERESTS. It is understood and agreed that in order to protect Beneficiary from the effect of U.C.C. Section 9313, as amended from time to time and as enacted in the State, in the event that
Trustor and/or Operating Lessee as applicable intends to purchase any goods which may become fixtures attached to the Property, or any part of the Property, and such goods will be subject to a purchase money security interest held by a seller or any
other party: 
 (a) Before executing any security agreement or other document evidencing or perfecting the security interest,
Trustor and/or Operating Lessee as applicable shall obtain the prior written approval of Beneficiary. All requests for such written approval shall be in writing and contain the following information: (i) a description of the fixtures;
(ii) the address at which the fixtures will be located; and (iii) the name and address of the proposed holder and proposed amount of the security interest. 

(b) Trustor shall pay all sums and perform all obligations secured by the security agreement. A default by Trustor under the security
agreement shall constitute a default under this Deed of Trust. If Trustor fails to make any payment on an obligation secured by a purchase money security interest in the Personal Property or any fixtures, Beneficiary, at its option, may pay the
secured amount and Beneficiary shall be subrogated to the rights of the holder of the purchase money security interest. 
  

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 (c) Beneficiary shall have the right to acquire by assignment from the holder of the
security interest for the Personal Property or fixtures, all contract rights, accounts receivable, negotiable or non-negotiable instruments, or other evidence of indebtedness and to enforce the security interest as assignee. 

(d) The provisions of subparagraphs (b) and (c) of this Section 13.4 shall not apply if the goods which may become
fixtures are of at least equivalent value and quality as the Personal Property being replaced and if the lien is permitted by Section 10.7(vii) or if the rights of the party holding the security interest are expressly subordinated to the lien
and security interest of this Deed of Trust in a manner satisfactory to Beneficiary. 
 ARTICLE XIV 

MISCELLANEOUS COVENANTS 

Section 14.1 NO WAIVER. No single or partial exercise by Beneficiary and/or Trustee, or delay or omission in the exercise by
Beneficiary and/or Trustee, of any right or remedy under the Loan Documents shall preclude, waive or limit the exercise of any other right or remedy. Beneficiary shall at all times have the right to proceed against any portion of, or interest in,
the Property without waiving any other rights or remedies with respect to any other portion of the Property. No right or remedy under any of the Loan Documents is intended to be exclusive of any other right or remedy but shall be cumulative and may
be exercised concurrently with or independently from any other right and remedy under any of the Loan Documents or under applicable law. 

Section 14.2 NOTICES. All notices, demands and requests given or required to be given by, pursuant to, or relating to, this
Deed of Trust shall be in writing. All notices shall be deemed to have been properly given if mailed by United States registered or certified mail, with return receipt requested, postage prepaid, or by United States Express Mail or other comparable
overnight courier service to the parties at the addresses set forth in the Defined Terms (or at such other addresses as shall be given in writing by any party to the others) and shall be deemed complete upon receipt or refusal to accept delivery as
indicated in the return receipt or in the receipt of such United States Express Mail or courier service. 
 Section 14.3
HEIRS AND ASSIGNS; TERMINOLOGY. 
 (a) This Deed of Trust applies to, inures to the benefit of , and binds Beneficiary,
Trustee, Liable Party and Trustor, and their heirs, legatees, devisees, administrators, executors, successors and assigns. The term “Trustor” shall include both the original Trustor and any subsequent owner or owners of any of the
Property. The term “Trustee” shall include both the original Trustee and any subsequent successor or additional trustee(s) acting under this Deed of Trust. The term “Beneficiary” shall include both the original Beneficiary and
any subsequent holder or holders of the Note. The term “Liable Party” shall include both the original Liable Party and any subsequent or substituted Liable Party. 

 

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 (b) In this Deed of Trust, whenever the context so requires, the masculine gender includes
the feminine and/or neuter, and the singular number includes the plural. 
 (c) If more than one party executes this Deed of
Trust as Trustor, the obligations of such parties shall be the joint and several obligations of each of them. 

Section 14.4 SEVERABILITY. If any provision of this Deed of Trust should be held unenforceable or void, then that provision
shall be separated from the remaining provisions and shall not affect the validity of this Deed of Trust except that if the unenforceable or void provision relates to the payment of any monetary sum, then, Beneficiary may, at its option, declare the
Secured Indebtedness immediately due and payable. 
 Section 14.5 APPLICABLE LAW. 

(a) IN ACCORDANCE WITH THE TERMS OF THE LOAN DOCUMENTS, THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS DEED OF TRUST AND UNDER THE
OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE INTERNAL LAW OF THE STATE OF ILLINOIS APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE WITHOUT GIVING EFFECT TO THE CONFLICTS-OF-LAW RULES AND
PRINCIPLES OF SUCH STATE AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA. 
 (b) TRUSTOR AND BENEFICIARY FURTHER
ACKNOWLEDGE, AGREE, AND STIPULATE THAT THE STATE OF ILLINOIS HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES INVOLVED IN THIS TRANSACTION AND TO THE UNDERLYING TRANSACTIONS SECURED BY THIS DEED OF TRUST. 

(c) NOTWITHSTANDING THE FOREGOING, THE PARTIES AGREE THAT: 

(i) THE PROCEDURES GOVERNING THE CREATION PERFECTION OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT TO THIS DEED OF TRUST AND THE
ENFORCEMENT BY BENEFICIARY AND TRUSTEE OF THE DEED OF TRUST, INCLUDING, WITHOUT LIMITATION, PROVISIONAL REMEDIES AGAINST TRUSTOR DIRECTLY RELATING TO THE REAL PROPERTY ENCUMBERED HEREBY, INCLUDING, BY WAY OF ILLUSTRATION BUT NOT LIMITATION, ANY SUCH
ACTIONS FOR REPLEVIN, FOR CLAIM OF DELIVERY OF PROPERTY, OR FOR THE APPOINTMENT OF A RECEIVER, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA; 

(ii) CALIFORNIA LAW SHALL APPLY TO THE EXTENT, BUT ONLY TO THE EXTENT, NECESSARY IN ORDER TO CREATE, TO PERFECT, AND TO FORECLOSE,
EITHER JUDICIALLY OR NON-JUDICIALLY, THE SECURITY INTERESTS AND LIENS CREATED HEREBY; PROVIDED, HOWEVER, THAT NOTHING IN THIS SECTION SHALL IN ANY EVENT BE CONSTRUED TO PROVIDE THAT THE SUBSTANTIVE LAW OF THE STATE OF CALIFORNIA SHALL APPLY
TO THE OBLIGATIONS AND INDEBTEDNESS SECURED BY THIS DEED OF TRUST OR EVIDENCED BY THE OTHER LOAN DOCUMENTS, WHICH ARE AND SHALL CONTINUE TO BE GOVERNED BY THE SUBSTANTIVE LAW OF THE STATE OF ILLINOIS. 

 

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 (iii) IN SUCH CONNECTION, THE PARTIES FURTHER AGREE THAT BENEFICIARY MAY ENFORCE ITS RIGHTS
UNDER THE LOAN DOCUMENTS, INCLUDING ITS RIGHT TO SUE TRUSTOR, TO COLLECT ANY OUTSTANDING INDEBTEDNESS, OR TO OBTAIN A JUDGMENT AGAINST TRUSTOR IN CALIFORNIA, ILLINOIS, OR OTHER STATES FOR ANY DEFICIENCY PRIOR TO OR FOLLOWING FORECLOSURE, IN
ACCORDANCE WITH ILLINOIS LAW, AND IF BENEFICIARY OBTAINS A DEFICIENCY JUDGMENT IN A STATE OTHER THAN IN CALIFORNIA, THEN BENEFICIARY SHALL HAVE THE RIGHT TO ENFORCE SUCH JUDGMENT IN CALIFORNIA, AS WELL AS IN OTHER STATES;. 

(iv) TRUSTOR REPRESENTS, WARRANTS, COVENANTS AND AGREES THAT: 

(1) THIS SECTION 14.5 WAS A MATERIAL INDUCEMENT FOR BENEFICIARY TO MAKE THE LOAN AND ENTER INTO THIS DEED OF TRUST AND BENEFICIARY WOULD
NOT HAVE MADE THE LOAN OR ENTERED INTO THIS DEED OF TRUST BUT FOR THIS SECTION 14.5. 
 (2) TO THE FULLEST EXTENT PERMITTED BY
LAW AND EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 14.5, TRUSTOR HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM OR RIGHT TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS DEED OF TRUST, THE NOTE, THE GUARANTY, THE TRUSTOR
GUARANTY, THE SUBORDINATE DEED OF TRUST, THE AFFILIATED GUARANTY AND THE AFFILIATED GUARANTOR SUBORDINATE MORTGAGE AND TRUSTOR HEREBY CONFIRMS THAT EACH OF THE FOREGOING DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF ILLINOIS AS SET FORTH IN SECTION 14.5(a). 
 Section 14.6 CAPTIONS. The captions are inserted only as a
matter of convenience and for reference, and in no way define, limit, or describe the scope or intent of any provisions of this Deed of Trust. 

Section 14.7 TIME OF THE ESSENCE. Time shall be of the essence with respect to all of Trustor’s and/or Operating
Lessee’s as applicable obligations under this Deed of Trust and the other Loan Documents. 
 Section 14.8 NO
MERGER. In the event that Beneficiary should become the owner of the Property, there shall be no merger of the estate created by this Deed of Trust with the fee estate in the Property. 

 

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 Section 14.9 NO MODIFICATIONS. This Deed of Trust may not be changed, amended or
modified, except in a writing expressly intended for such purpose and executed by Trustor and Beneficiary. 
 [SIGNATURES ON
FOLLOWING PAGE] 
  

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 IN WITNESS WHEREOF, Trustor and Operating Lessee have executed this Deed of Trust, or has
caused this Deed of Trust to be executed by its duly authorized representative(s) as of the Execution Date. 
  

			
	TRUSTOR:
	
	 SHR St. Francis, L.L.C.,

a Delaware limited liability company

		
	By:	 	 /s/ Jonathan P. Stanner

		 	Jonathan P. Stanner
		 	Vice President, Corporate Finance
	
	OPERATING LESSEE:
	
	 DTRS St. Francis, L.L.C.,

a Delaware limited liability company

		
	By:	 	 /s/ Jonathan P. Stanner

		 	Jonathan P. Stanner
		 	Vice President, Corporate Finance

  

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	 STATE OF ILLINOIS
	 	)	  	
		 	)	  	ss.
	 COUNTY OF COOK
	 	)	  	

 On May 5, 2010, before me, Peggy E. Samson, a Notary Public, personally appeared Jonathan P.
Stanner, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on
the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Illinois that the foregoing paragraph is true and correct. 

WITNESS my hand and official seal. 
  

	
	 /s/ Peggy E. Samson

	Signature

 (Seal) 

 

					
	 STATE OF ILLINOIS
	 	)	  	
		 	)	  	ss.
	 COUNTY OF COOK
	 	)	  	

 On May 5, 2010, before me, Peggy E. Samson, a Notary Public, personally appeared Jonathan P.
Stanner, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on
the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Illinois that the foregoing paragraph is true and correct. 

WITNESS my hand and official seal. 
  

	
	 /s/ Peggy E. Samson

	Signature

 (Seal) 

Table of Contents

 EXHIBIT “A” 

PROPERTY DESCRIPTION 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SAN FRANCISCO, COUNTY OF SAN FRANCISCO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

 PARCEL A: 

BEGINNING at a point formed by the intersection of the Northerly line of Geary Street with the Westerly line of Powell Street; running
thence Northerly, along the Westerly line of Powell Street, 275 feet to the corner formed by the intersection of the Westerly line of Powell Street with the Southerly line of Post Street; running thence Westerly, along the Southerly line of Post
Street, 192 feet and 6 inches; thence at a right angle Southerly 137 feet and 6 inches; thence at a right angle Westerly 22 feet and
8 1/4 inches; thence at a right angle Southerly 137
feet and 6 inches to the Northerly line of Geary Street; thence Easterly, along the Northerly line of Geary Street, 215 feet and
2 1/4 inches to the point of beginning.

 BEING a portion of 50 Vara Block No. 168 

Assessor’s Parcel No: Lot 1, Block 307 

PARCEL B: 
 BEGINNING at a
point on the Northerly line of Geary Street, distant thereon 215 feet and
2 1/4 inches Westerly from the Westerly line of
Powell Street, as said lines and all other street lines hereinafter mentioned are positions according to the “Monument Map of Fifty Vara District of the City and County of San Francisco” filed January 7, 1910, in Map book
“G” at Page 151, in the Office of the Recorder in the City and County of San Francisco, State of California: 

Running thence Westerly, along said line of Geary Street, 60 feet and
2 1/4 inches to a point thereon, said point being
137 feet 10  1/2 inches easterly from the easterly
line of Mason Street; thence at a right angle Northerly 137 feet and 6 inches; thence at a right angle Westerly 27 feet and 10  1/
2 inches; thence at a right angle Northerly 137 feet and 6 inches to the Southerly line of Post Street; thence at a right angle Easterly, along said line of Post Street,
110 feet 9 inches to a point thereon 192 feet and 6 inches Westerly from the Westerly line of Powell Street; thence at a right angle Southerly 137 feet and 6 inches; thence at a right angle Westerly 22 feet and
8 1/4 inches; thence at a right angle Southerly 137
feet and 6 inches to the point of beginning. 
 BEING a portion of 50 Vara Block No. 168 

Assessor’s Parcel No. Lot 13, Block 307 
  

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 EXHIBIT “B” 

TO DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING 

LEASING GUIDELINES 

“Leasing Guidelines” shall mean the guidelines approved in writing by Beneficiary, from time to time, with respect to the
leasing of the retail portions of the Property. The following are the initial Leasing Guidelines: 
 (a) No Leases shall have
(i) Landlord environmental indemnification provisions, (ii) tenant purchase options, or (iii) provide for Landlord to have liability in excess of its equity interest in the Property; 

(b) All Leases shall have an initial term of not more than 10 years; 

(c) All Leases shall have an annual minimum rent equal to the then prevailing current market rate. 

(d) No Leases shall be entered into if there is an Event of Default under any of the Loan Documents; and 

(e) All payments of rent, additional rent or any other amounts due from a tenant to a landlord under any Lease shall be made in money of
the United States of America that at the time of payment shall be legal tender for the payment of all obligations. 
  

 B-1

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