Document:

Exhibit 4.2

 

EXECUTION
VERSION

 

	
   

  

 

 

THE ALLSTATE
CORPORATION

 

TO

 

U.S. BANK NATIONAL
ASSOCIATION, as Trustee

 

 

FIFTEENTH
SUPPLEMENTAL INDENTURE TO

INDENTURE DATED DECEMBER 16, 1997

(SENIOR DEBT SECURITIES)

Dated as of May 13,
2009

 

 

7.450% Senior
Notes, Series B due 2019

 

	
   

  

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  Relation to Indenture; Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
  RELATION TO INDENTURE

  	
  1

  
	
  Section 1.2.

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  
	
  The Series of Securities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
  TITLE OF THE SECURITIES

  	
  2

  
	
  Section 2.2.

  	
  LIMITATION ON AGGREGATE PRINCIPAL AMOUNT

  	
  2

  
	
  Section 2.3.

  	
  PRINCIPAL PAYMENT DATE

  	
  2

  
	
  Section 2.4.

  	
  INTEREST AND INTEREST RATES

  	
  2

  
	
  Section 2.5.

  	
  PLACE OF PAYMENT

  	
  3

  
	
  Section 2.6.

  	
  REDEMPTION

  	
  3

  
	
  Section 2.7.

  	
  DENOMINATION

  	
  5

  
	
  Section 2.8.

  	
  CURRENCY

  	
  5

  
	
  Section 2.9.

  	
  FORM OF SECURITIES

  	
  5

  
	
  Section 2.10.

  	
  SECURITIES REGISTRAR AND PAYING AGENT

  	
  5

  
	
  Section 2.11.

  	
  SINKING FUND OBLIGATIONS

  	
  5

  
	
  Section 2.12.

  	
  DEFEASANCE AND COVENANT DEFEASANCE

  	
  5

  
	
  Section 2.13.

  	
  IMMEDIATELY AVAILABLE FUNDS

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  
	
  Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
  PAYMENT OF EXPENSES

  	
  5

  
	
  Section 3.2.

  	
  PAYMENT UPON RESIGNATION OR REMOVAL

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  
	
  Miscellaneous Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
  TRUSTEE NOT RESPONSIBLE FOR RECITALS

  	
  5

  
	
  Section 4.2.

  	
  ADOPTION, RATIFICATION AND CONFIRMATION

  	
  6

  
	
  Section 4.3.

  	
  COUNTERPARTS

  	
  6

  
	
  Section 4.4.

  	
  GOVERNING LAW

  	
  6

  

 

i

 

THE ALLSTATE CORPORATION

 

FIFTEENTH SUPPLEMENTAL INDENTURE TO

INDENTURE DATED DECEMBER 16, 1997

(SENIOR DEBT SECURITIES)

 

$700,000,000

 

7.450% Senior
Notes, Series B due 2019

 

FIFTEENTH SUPPLEMENTAL
INDENTURE, dated as of May 13, 2009, between THE ALLSTATE CORPORATION,
a Delaware corporation (the “Company”),
and U.S. BANK NATIONAL ASSOCIATION, a national banking association, organized
under the laws of the United States, as successor in interest to STATE STREET
BANK AND TRUST COMPANY, a trust company organized under the laws of the
Commonwealth of Massachusetts, as Trustee (the “Trustee”).

 

RECITALS

 

The Company has heretofore executed and delivered to
the Trustee an Indenture for Senior Debt Securities, dated as of December 16,
1997, as amended by the Third Supplemental Indenture dated as of July 23,
1999 and the Sixth Supplemental Indenture dated as of June 12, 2000 (the “Indenture”), providing for the issuance
from time to time of series of the Company’s Securities.

 

Section 301 of the Indenture provides for various
matters with respect to any series of Securities issued under the Indenture to
be established in an indenture supplemental to the Indenture.

 

Section 901(7) of the Indenture provides for
the Company and the Trustee to enter into an indenture supplemental to the
Indenture to establish the form or terms of Securities of any series as
provided by Sections 201 and 301 of the Indenture.

 

NOW, THEREFORE, THIS FIFTEENTH SUPPLEMENTAL INDENTURE
WITNESSETH:

 

For and in consideration of the premises and the
issuance of the series of Securities provided for herein, it is mutually
agreed, for the equal and proportionate benefit of all Holders of the
Securities of such series, as follows:

 

ARTICLE
I

RELATION TO INDENTURE; DEFINITIONS

 

Section 1.1.            RELATION TO
INDENTURE.  This
Fifteenth Supplemental Indenture constitutes an integral part of the Indenture.

 

Section 1.2.            DEFINITIONS.  For all purposes of this Fifteenth
Supplemental Indenture:

 

1

 

(a)          Capitalized terms used herein without
definition shall have the meanings specified in the Indenture;

 

(b)         All references herein to Articles and Sections,
unless otherwise specified, refer to the corresponding Articles and Sections of
this Fifteenth Supplemental Indenture; and

 

(c)          The terms “herein,” “hereof,” “hereunder”
and other words of similar import refer to this Fifteenth Supplemental Indenture.

 

ARTICLE II

THE SERIES OF SECURITIES

 

Section 2.1.            TITLE OF THE SECURITIES.  There shall be a series of Securities
designated the “7.450% Senior Notes, Series B due 2019” (the “Securities”).

 

Section 2.2.            LIMITATION ON AGGREGATE
PRINCIPAL AMOUNT.  The
aggregate principal amount of the Securities shall initially be limited to $700,000,000.  The Company
may, without the consent of the holders of the Securities, issue additional
Securities having the same interest rate, maturity date and other terms as described
in the related prospectus supplement and prospectus.  Any additional Securities, together with the
Securities offered by the related prospectus supplement, will constitute a
single series of Securities under the Indenture.  No additional Securities may be issued if an
Event of Default under the Indenture has occurred and is continuing with
respect to the Securities.

 

Section 2.3.            PRINCIPAL PAYMENT DATE.  The principal amount of the Securities
outstanding (together with any accrued and unpaid interest) shall be payable in
a single installment on May 16, 2019, which date shall be the Stated
Maturity of the Securities Outstanding.

 

Section 2.4.            INTEREST AND INTEREST RATES.  The rate of interest on each Security shall
be 7.450% per annum, accruing from May 13, 2009, or from the most recent interest payment
date (each such date, an “Interest Payment Date”) to which interest has been paid or duly provided
for, payable semi-annually in arrears on May 16 and November 16 of each year commencing November 16, 2009 until the principal thereof shall have become
due and payable, and until the principal thereof is paid or duly provided for
or made available for payment.  The
amount of interest payable on any Interest Payment Date shall be computed on
the basis of a 360-day year of twelve 30-day months.  The amount of interest payable for any
partial period shall be computed on the basis of the actual number of days
elapsed in a 360-day year of twelve 30-day months.  In the event that any date on which interest
is payable on any Security is not a Business Day, then payment of interest
payable on such date will be made on the next succeeding day that is a Business
Day (and without any interest or other payment in respect of any such delay).  A “Business Day” shall mean any day, other than a Saturday or
Sunday, on which banks in the City of New York and Boston, Massachusetts are
not required by law to close.  The
interest installment so payable in respect of any Security, and punctually paid
or duly provided for, on any Interest Payment Date will, as provided in the
Indenture, be paid to the person in whose name such Security (or one or more
Predecessor Securities) is registered at the close of business on May 1 or
November 1 prior to such Interest Payment Date.  Any such 

 

2

 

interest installment not
punctually paid or duly provided for in respect of any Security shall forthwith
cease to be payable to the registered Holder on such Regular Record Date and
may either be paid to the Person in whose name such Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date to be fixed by the Trustee for the payment of such Defaulted
Interest, notice whereof shall be given to the Holders of this series of
Securities not less than 10 days prior to such Special Record Date, or be paid
at any time in any other lawful manner not inconsistent with the requirements
of any securities exchange on which the Securities of this series may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture.

 

Section 2.5.            PLACE OF PAYMENT.  The Place of Payment where the Securities may
be presented or surrendered for payment, where the Securities may be
surrendered for registration of transfer or exchange and where notices and
demand to or upon the Company in respect of the Securities and the Indenture
may be served shall be the Corporate Trust Office of the Trustee.

 

Section 2.6.            REDEMPTION.

 

(a)           The Company may redeem the Securities, in whole or
in part, at any time at a redemption price equal to the greater of (i) 100%
of the principal amount of such securities to be redeemed or (ii) an
amount, as determined by an Independent Investment Banker, equal to the sum of
the present values of the remaining scheduled payments of principal of and
interest on the securities to be redeemed (not including any portion of such
payments of interest accrued to the date of redemption) discounted to the
redemption date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Adjusted Treasury Rate, plus 45
basis points, plus, in either of the above cases, accrued and unpaid interest
thereon to the redemption date.

 

(b)           For the purposes of this Section 2.6,

 

“Adjusted
Treasury Rate” means, with respect to any redemption date:

 

(i)            the
yield, under the heading which represents the average for the  immediately preceding week, appearing in the
most recently published statistical release designated “H.15(519)” published
by  the Board of Governors of the Federal
Reserve System (or any  successor
publication which is published weekly by the Board of Governors of the Federal
Reserve System and which establishes yields on actively traded United States
Treasury securities  adjusted to constant
maturity) under the caption “Treasury 
Constant Maturities,” for the maturity corresponding to the Comparable
Treasury Issue.  If no maturity is within
three months before or after the Remaining Life, yields for the two published
maturities most closely corresponding to the Comparable Treasury
Issue shall be determined and the Adjusted Treasury Rate shall be interpolated
or extrapolated from such yields on a straight line basis, rounding to the
nearest month; or

 

(ii)           if
such release (or any successor release) is not published during the week 

 

3

 

preceding the
calculation date or does not contain such yields, the rate per annum equal to
the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated
using a price for the Comparable Treasury Issue (expressed as a percentage of
its principal amount) equal to the Comparable Treasury Price for such
redemption date.

 

The Adjusted Treasury Rate shall be calculated on the
third business day preceding the redemption date.

 

“Comparable Treasury
Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining
term of the securities to be redeemed that would be used, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining
term of such securities (“Remaining Life”).

 

“Comparable Treasury
Price” means (i) the average of five Reference Treasury Dealer
Quotations for such redemption date, after excluding the highest and lowest
Reference Treasury Dealer Quotations, or (ii) if the Independent
Investment Banker obtains fewer than five such Reference Treasury Dealer
Quotations, the average of all such quotations.

 

“Independent
Investment Banker” means one of the Reference Treasury Dealers
appointed by us.

 

“Reference Treasury Dealer” means:

 

(i)            each of Goldman, Sachs & Co., Barclays
Capital Inc. and J.P. Morgan Securities Inc., and their respective successors;
provided, however, that if any of the foregoing shall cease to be a primary
U.S. Government securities dealer in the United States (a “Primary Treasury Dealer”), the Company
shall substitute therefor another 
Primary Treasury Dealer; and

 

(ii)           any two other Primary Treasury
Dealers selected by the Company.

 

“Reference Treasury
Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Independent
Investment Banker, of the bid and asked prices for the Comparable Treasury
Issue (expressed in each case as a percentage of its principal amount) quoted
in writing to the Independent Investment Banker at 5:00 p.m., New York
City Time, on the third business day preceding such redemption date.

 

The Company will mail a notice of redemption at least
30 days but not more than 60 days before the redemption date to each holder of
the securities to be redeemed.  If less
than all of the securities are to be redeemed, the trustee will select, by such
method as it will deem fair and appropriate, including pro rata or by lot, the
securities to be redeemed in whole or in part.

 

Unless the Company defaults in payment of the
redemption price, on and after the redemption date, interest will cease to
accrue on the securities or portions thereof called for 

 

4

 

redemption.

 

Section 2.7.            DENOMINATION.  The Securities of this series shall be
issuable only in registered form without coupons and in denominations of $2,000
and integral multiples of $1,000 in excess thereof.

 

Section 2.8.            CURRENCY.  Principal and interest on the Securities
shall be payable in such coin or currency of the United States of America that
at the time of payment is legal tender for payment of public and private debts.

 

Section 2.9.            FORM OF SECURITIES.  The Securities shall be substantially in the
form attached as EXHIBIT A hereto.

 

Section 2.10.          SECURITIES REGISTRAR AND
PAYING AGENT.  The Trustee shall serve
initially as Securities Registrar and Paying Agent.

 

Section 2.11.          SINKING FUND OBLIGATIONS.  The Company has no obligation to redeem or
purchase any Securities pursuant to any sinking fund or analogous requirement
or upon the happening of a specified event or at the option of a Holder
thereof.

 

Section 2.12.          DEFEASANCE AND COVENANT
DEFEASANCE.  The
Company has elected to have both Section 1302 (relating to defeasance) and
Section 1303 (relating to covenant defeasance) applied to the Securities.

 

Section 2.13.          IMMEDIATELY AVAILABLE FUNDS.  All payments of principal and interest shall
be made in immediately available funds.

 

ARTICLE III

EXPENSES

 

Section 3.1.            PAYMENT OF EXPENSES.  In connection with the offering, sale and
issuance of the Securities, the Company, in its capacity as borrower with
respect to the Securities, shall pay all costs and expenses relating to the
offering, sale and issuance of the Securities, including commissions to the
underwriters payable pursuant to the Underwriting Agreement, dated May 11, 2009, and
compensation and expenses of the Trustee under the Indenture in accordance with
the provisions of Section 607 of the Indenture.

 

Section 3.2.            PAYMENT UPON
RESIGNATION OR REMOVAL.  Upon
termination of this Fifteenth Supplemental Indenture or the Indenture or the
removal or resignation of the Trustee, unless otherwise stated, the Company
shall pay to the Trustee all amounts accrued to the date of such termination,
removal or resignation.

 

ARTICLE IV

MISCELLANEOUS PROVISIONS

 

Section 4.1.            TRUSTEE NOT RESPONSIBLE FOR
RECITALS.  The
recitals herein contained are made by the Company and not by the Trustee, and
the Trustee assumes no responsibility for the correctness thereof.  The Trustee makes no representation as to the
validity or sufficiency of this Fifteenth Supplemental Indenture.

 

5

 

Section 4.2.            ADOPTION, RATIFICATION AND
CONFIRMATION.  The
Indenture, as supplemented and amended by this Fifteenth Supplemental
Indenture, is in all respects hereby adopted, ratified and confirmed.

 

Section 4.3.            COUNTERPARTS.  This Fifteenth Supplemental Indenture may be
executed in any number of counterparts, each of which shall be an original, but
such counterparts shall together constitute but one and the same instrument.

 

Section 4.4.            GOVERNING LAW.  THIS FIFTEENTH SUPPLEMENTAL INDENTURE AND
EACH SECURITY SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE
OF NEW YORK AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES
THEREOF.

 

6

 

IN WITNESS WHEREOF, the parties hereto have caused
this Fifteenth Supplemental Indenture to be duly executed, and their respective
corporate seals to be hereunto affixed and attested, on the date or dates
indicated in the acknowledgments and as of the day and year first above
written.

 

	
   

  	
  THE ALLSTATE
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven C. Verney

  
	
   

  	
   

  	
  Name: Steven C. Verney

  
	
   

  	
   

  	
  Title: Treasurer

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Jennifer M. Hager

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Jennifer M. Hager

  	
   

  	
   

  
	
   

  	
  Title: Assistant Secretary

  	
   

  	
   

  
	
   

  	
  U.S. BANK NATIONAL
  ASSOCIATION,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Carolina D.
  Altomare

  
	
   

  	
   

  	
  Name: Carolina D.
  Altomare

  
	
   

  	
   

  	
  Title: Vice President

  
					

 

7

 

EXHIBIT A

 

(FORM OF FACE OF SECURITY)

 

This Security is a Global Security within the meaning
of the Indenture hereinafter referred to and is registered in the name of a
Depositary or a nominee of a Depositary. This Security is exchangeable for
Securities registered in the name of a person other than the Depositary or its
nominee only in the limited circumstances described in the Indenture, and no
transfer of this Security (other than a transfer of this Security as a whole by
the Depositary to a nominee of the Depositary or by a nominee of the Depositary
to the Depositary or another nominee of the Depositary) may be registered
except in limited circumstances.

 

Unless this Security is presented by an authorized
representative of The Depository Trust Company (55 Water Street, New York, New
York) to the issuer or its agent for registration of transfer, exchange or
payment, and any Security issued is registered in the name of Cede &
Co. or such other name as requested by an authorized representative of The
Depository Trust Company and any payment hereon is made to Cede & Co.,
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS
WRONGFUL since the registered owner hereof, Cede & Co., has an
interest herein.

 

	
  Certificate
  No.               

  	
  $

  	
                                        

  
	
   

  	
   

  	
  CUSIP
  No. 020002 AX9

  

 

THE ALLSTATE CORPORATION

 

7.450% Senior Notes, Series B due 2019

 

THE ALLSTATE CORPORATION, a Delaware corporation (the “Company,”
which term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to CEDE & CO.
or registered assigns, the principal sum of                                                 on
May 16, 2019.  The Company further promises
to pay interest on said principal sum outstanding from May 13, 2009, or from the most recent interest
payment date (each such date, an “Interest Payment Date”) to which interest has
been paid or duly provided for, semi-annually in arrears on May 16 and November 16 of each year commencing November 16, 2009 at the rate of 7.450% per annum, until the principal hereof
shall have become due and payable and, until the principal hereof is paid or
duly provided for or made available for payment.  The amount of interest payable on any Interest
Payment Date shall be computed on the basis of a 360-day year of twelve 30-day
months.  The amount of interest payable
for any partial period shall be computed on the basis of the number of actual
days elapsed in a 360-day year of twelve 30-day months.  In the event that any date on which interest
is payable on this Security is not a Business Day, then payment of interest
payable on such date will be made on the next succeeding day that is a Business
Day (and without any interest or other payment in respect of any such
delay).  A “Business Day” shall mean any
day, other than a Saturday or Sunday, on which banks in the City of New York
and Boston, Massachusetts are not required by law to
close.  The interest installment so
payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in the Indenture, be paid to the 

 

A-1

 

Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on May 1 or November 1 prior to such Interest Payment
Date.  Any such interest installment not
punctually paid or duly provided for shall forthwith cease to be payable to the
registered Holder on such Regular Record Date and may either be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date to be fixed by the
Trustee for the payment of such Defaulted Interest, notice whereof shall be
given to the Holder of this Security not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which this
Security may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in the Indenture.

 

The principal of (and premium, if any) and the
interest on this Security shall be payable at the office or agency of the
Company maintained for that purpose in the United States in such coin or
currency of the United States of America that at the time of payment is legal
tender for payment of public and private debts; PROVIDED, HOWEVER, that payment
of interest may be made at the option of the Company by check mailed to the registered
Holder at such address as shall appear in the Security Register.  Notwithstanding the foregoing, so long as the
Holder of this Security is Cede & Co., the payment of the principal of
(and premium, if any) and interest on this Security will be made at such place
and to such account as may be designated by Cede & Co. All payments of
principal and interest hereunder shall be made in immediately available funds.

 

Reference is hereby made to the further provisions of
this Security set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.

 

Unless the certificate of authentication hereon has
been executed by the Trustee referred to on the reverse hereof by manual
signature, this Security shall not be entitled to any benefit under the
Indenture or be valid for any purpose.

 

A-2

 

IN WITNESS WHEREOF, the
Company has caused this instrument to be executed.

 

	
   

  	
  THE ALLSTATE
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated
herein referred to in the within-mentioned Indenture.

 

Dated: May 13, 2009

 

 

	
   

  	
  U.S. BANK
  NATIONAL ASSOCIATION,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3

 

(FORM OF REVERSE OF SECURITY)

 

This Security is one of a duly authorized issue of
securities of the Company, designated as its 7.450% Senior Notes, Series B due 2019 (herein referred to as the “Securities”),
issued under and pursuant to an Indenture, dated as of December 16, 1997
between the Company and U.S. Bank National Association, successor in interest
to State Street Bank and Trust Company, as Trustee (herein called the “Trustee,”
which term includes any successor trustee under the Indenture), as amended by
the Third Supplemental Indenture dated as of July 23, 1999 and the Sixth
Supplemental Indenture dated as of June 12, 2000 and as supplemented by
the Fifteenth Supplemental Indenture, dated as of May 13, 2009, between the Company and the
Trustee (the Indenture as so amended and supplemented, the “Indenture”), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be,
authenticated and delivered.

 

All terms used in this Security that are defined in
the Indenture shall have the meanings assigned to them in the Indenture.

 

The Company may redeem the Securities, in whole or in
part, at any time at a redemption price equal to the greater of (i) 100%
of the principal amount of such securities to be redeemed or (ii) an
amount, as determined by an Independent Investment Banker, equal to the sum of
the present values of the remaining scheduled payments of principal of and
interest on the securities to be redeemed (not including any portion of such
payments of interest accrued to the date of redemption) discounted to the
redemption date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Adjusted Treasury Rate, plus 45
basis points, plus, in either of the above cases, accrued and unpaid interest
thereon to the redemption date.

 

“Adjusted Treasury Rate”
means, with respect to any redemption date:

 

(i)            the
yield, under the heading which represents the average for the immediately
preceding week, appearing in the most recently published statistical release
designated “H.15(519)” published by the Board of Governors of the Federal
Reserve System (or any successor publication which is published weekly by the
Board of Governors of the Federal Reserve System and which establishes yields
on actively traded United States Treasury securities adjusted to constant
maturity) under the caption “Treasury Constant Maturities,” for the maturity
corresponding to the Comparable Treasury Issue. 
If no maturity is within three months before or after the Remaining
Life, yields for the two published maturities most closely corresponding to the
Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate
shall be interpolated or extrapolated from such yields on a straight line
basis, rounding to the nearest month; or

 

(ii)           if
such release (or any successor release) is not published during the week 

 

A-4

 

 

preceding
the calculation date or does not contain such yields, the rate per annum equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury
Issue, calculated using a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price
for such redemption date.

 

The Adjusted Treasury Rate shall be calculated on the
third business day preceding the redemption date.

 

“Comparable Treasury Issue” means the United States
Treasury security selected by an Independent Investment Banker as having a
maturity comparable to the remaining term of the securities to be redeemed that
would be used, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of such securities (“Remaining Life”).

 

“Comparable Treasury Price” means (i) the average
of five Reference Treasury Dealer Quotations for such redemption date, after
excluding the highest and lowest Reference Treasury Dealer Quotations, or (ii) if
the Independent Investment Banker obtains fewer than five such Reference
Treasury Dealer Quotations, the average of all such quotations.

 

“Independent Investment Banker” means one of the
Reference Treasury Dealers appointed by us.

 

“Reference Treasury Dealer” means:

 

(i)            each
of Goldman, Sachs & Co., Barclays Capital Inc. and J.P. Morgan
Securities Inc., and their respective successors; provided, however, that if
any of the foregoing shall cease to be a primary U.S. Government securities
dealer in the United States (a “Primary 
Treasury Dealer”), the Company shall substitute therefor another Primary
Treasury Dealer; and

 

(ii)           any
two other Primary Treasury Dealers selected by the Company.

 

“Reference Treasury Dealer Quotations” means, with
respect to each Reference Treasury Dealer and any redemption date, the average,
as determined by the Independent Investment Banker, of the bid and asked prices
for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Independent Investment Banker at
5:00 p.m., New York City Time, on the third business day preceding such
redemption date.

 

The Company will mail a notice of redemption at least
30 days but not more than 60 days before the redemption date to each holder of
the securities to be redeemed.  If less
than all of the securities are to be redeemed, the trustee will select, by such
method as it will deem fair and appropriate, including pro rata or by lot, the
securities to be redeemed in whole or in part.

 

Unless we default in payment of the redemption price,
on and after the redemption date, interest will cease to accrue on the
securities or portions thereof called for 

 

A-5

 

redemption.

 

If an Event of Default with respect to Securities of
this series shall occur and be continuing, the principal of the Securities of
this series may be declared due and payable in the manner, with the effect and
subject to the conditions provided in the Indenture.

 

The Indenture contains provisions for satisfaction,
discharge and defeasance at any time of the entire indebtedness of this
Security upon compliance by the Company with certain conditions set forth in
the Indenture.

 

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Securities of
each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of a majority in principal amount
of the Securities of each series at the time Outstanding of each series to be
affected.  The Indenture also contains
provisions permitting Holders of specified percentages in principal amount of
the Securities of each series at the time Outstanding, on behalf of the Holders
of all Securities of such series, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences.  Any
such consent or waiver by the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
therefor or in lieu hereof, whether or not notation of such consent or waiver
is made upon this Security.  No reference
herein to the Indenture and no provision of this Security or of the Indenture
(other than Section 1302 and Section 1303 of the Indenture) shall
alter or impair the obligation of the Company to pay the principal and interest
on the Security at the times, place and rate, and in the coin or currency,
herein prescribed.

 

As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the Securities Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company maintained under Section 1002
of the Indenture duly endorsed by, or accompanied by a written instrument of
transfer, in form satisfactory to the Company and the Securities Registrar,
duly executed by the Holder hereof or his or her attorney duly authorized in
writing, and thereupon one or more new Securities of this series, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees. 
No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

 

Prior to due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered
as the owner hereof for all purposes, whether or not this Security be overdue,
and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary.  This Global
Security is exchangeable for Securities in definitive form only under certain
limited circumstances set forth in the Indenture.  Securities of this series so issued are
issuable only in registered form without coupons in denominations of $2,000 and
any integral multiples of $1,000 in excess thereof.  As provided in the Indenture and subject to
certain limitations herein and therein set forth, Securities of this series so
issued are exchangeable for a 

 

A-6

 

like aggregate principal
amount of Securities of this series of a different authorized denomination, as
requested by the Holder surrendering the same.

 

The Company and, by its acceptance of this Security or
a beneficial interest therein, the Holder of, and any Person that acquires a
beneficial interest in, this Security agree that for United States federal,
state and local tax purposes it is intended that this Security constitute
indebtedness.

 

THE INTERNAL LAWS OF THE STATE OF NEW YORK SHALL
GOVERN THE INDENTURE AND THE SECURITIES WITHOUT REGARD TO CONFLICT OF LAW
PROVISIONS THEREOF.

 

A-7Exhibit 10.1

 

THIRD MODIFICATION AGREEMENT

 

THIS THIRD MODIFICATION
AGREEMENT (“Agreement”)
is made as of May       , 2009 by and among
WELLS FARGO BANK, N.A., AS TRUSTEE FOR THE CREDIT SUISSE FIRST BOSTON MORTGAGE
SECURITIES CORP. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2007-TFL2 (“Lender”), PH
FEE OWNER LLC, a Delaware limited liability company (“Fee Owner”), OPBIZ, L.L.C., a
Nevada limited liability company (“OPBIZ”)
(OPBIZ and Fee Owner are sometimes individually and collectively and jointly
and severally referred to herein as “Borrower”),
PLANET HOLLYWOOD INTERNATIONAL, INC., a Delaware corporation (“PHI”), PLANET HOLLYWOOD (REGION
IV), INC., a Minnesota corporation (“PHIV”),
PLANET HOLLYWOOD MEMORABILIA, INC., a Florida corporation (“PHM”)(each of PHI, PHIV, and PHM,
a “PH Entity”), TROPHY
HUNTER INVESTMENTS, LTD., a Florida limited partnership (“THI”), BAY HARBOUR 90-1, LTD., a
Florida limited partnership (“BH90-1”),
BAY HARBOUR MASTER LTD., a Cayman Islands exempted company (“BHML”), DOUGLAS TEITELBAUM, an
individual (“Teitelbaum”),
and ROBERT EARL, an individual (“Earl”)
(THI, BH90-1, BHML, Teitelbaum, and Earl are sometimes individually and
collectively and jointly and severally referred to as “Guarantor”) (Borrower, each PH
Entity and Guarantor are sometimes individually and collectively and jointly
and severally referred to as “Obligors”).

 

RECITALS

 

The following recitals
are a material part of this Agreement:

 

A.                                   Pursuant to that certain Loan Agreement
dated as of November 30, 2006 (together with all amendments,
modifications, or supplements thereto, including the Omnibus Amendment (as
defined below) and the 2008 Modification Agreement (defined below),
collectively, the “Loan Agreement”),
and the other documents listed on Schedule 1 hereto, Column
Financial, Inc., a Delaware corporation (“Original Lender”), made a senior secured loan in the original
principal amount of up to $820,000,000.00 (as such loan was subsequently
increased to $860,000,000, the “Loan”)
to Borrower.  Capitalized terms used in
this Agreement without definition have the meanings set forth in the Loan
Agreement unless the context clearly requires otherwise.

 

B.                                     Pursuant to (i) an Omnibus Amendment
of Loan Documents dated as of July 17, 2007 (the “Omnibus Amendment”), and (ii) a
Modification Agreement dated as of August 11, 2008 (the “2008 Modification Agreement”),
certain provisions of the Loan Agreement and the other Loan Documents were
modified as set forth therein.

 

C.                                     The Loan Agreement, the documents listed
on Schedule 1, and all other documents evidencing or securing or
executed in connection with the making or administration of the Loan, as such
documents have been amended, restated, replaced, supplemented, or otherwise
modified from time to time, including pursuant to the Omnibus Amendment and the
2008 Modification Agreement, are sometimes referred to in this Agreement
collectively as the “Loan Documents.”

 

 

D.                                    Original Lender’s rights and obligations
under the Loan Agreement and the other Loan Documents have been assigned to
Lender and Lender is the owner and holder of the Loan and the Loan Documents.

 

E.                                      Borrower has requested that Lender agree
to certain modifications of the Loan Documents and Lender has agreed to modify
the Loan Documents subject to and in accordance with the terms and conditions
of this Agreement.

 

F.                                      Each Guarantor has delivered to Lender a
fully executed  Limited Guaranty (each,
an “Additional Guaranty”)
of even date herewith whereby each Guarantor guarantees to Lender the payment
and performance of certain obligations.

 

G.                                     Borrower has delivered to Lender an
Irrevocable Limited Power of Attorney (the “Power of Attorney”) appointing Lender as its attorney in fact
to make and execute all documents, on behalf of Borrower, necessary or desirable
to effect a severance of certain Loan Documents pursuant to Section 8.2(b) of
the Loan Agreement.

 

H.                                    Borrower has paid or reimbursed Lender,
any participants in the Loan and servicers or similar parties all expenses
incurred by such parties through the date hereof in connection with the
negotiation, preparation and execution of this Agreement, each Additional
Guaranty, the Power of Attorney (including recording costs relating thereto),
and any other consents, amendments, waivers or other modifications to the Loan
Documents incidental or related to this Agreement, together with a $150,000.00
processing fee to servicer.

 

AGREEMENT

 

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

 

1.                                       Interest Reserve Account.

 

(a)                                  Notwithstanding any provision of the Loan
Agreement, including Section 7.4 of the Loan Agreement, to the contrary,
commencing on the date hereof and continuing until December 9, 2009:  (i) in lieu of the requirement of Section 7.4.2
of the Loan Agreement that the amount of the Interest Reserve Fund be at least
$11,000,000.00 at all times, the amount of the Interest Reserve Fund that Borrower
shall be obligated to maintain in the Interest Reserve Account shall be an
amount not less than $2,000,000.00 and (ii) Borrower shall not be entitled
to withdraw or require application of any Interest Reserve Funds, including to
pay any monthly Debt Service payment or part thereof pursuant to Section 7.4.3
of the Loan Agreement, if after giving effect to such withdrawal or
application, the balance of the Interest Reserve Fund maintained in the
Interest Reserve Account would be less than $2,000,000.00.  Accordingly, the second and third sentences
of Section 7.4.2 shall be inapplicable from the date hereof until December 9,
2009.  Commencing on December 9,
2009, the requirements of Section 7.4.2 of the Loan Agreement shall be
reinstated in all respects including the requirement that the amount of the
Interest Reserve Fund shall be at least $11,000,000.00.  Borrower’s failure to cause the amount of the
Interest Reserve Fund maintained in the Interest Reserve Account to at all
times be maintained at the applicable required level shall (subject, commencing
December 9, 2009, to 

 

2

 

Borrower’s right pursuant
to Section 7.4.2 to replenish the Interest Reserve Funds to $11,000,000
following application of the Interest Reserve Funds under Section 7.4.3),
without notice or any other action or any right to cure, be an Event of Default
under the Loan Agreement and a “Specified Event” hereunder.

 

(b)                                 Section 7.4.4 of the Loan Agreement,
is amended to delete the phrase “1.2:1.0” and substitute “1.3:1.0” therefor.

 

(c)                                  Section 2.7(g) of the Loan
Agreement is amended and restated in its entirety to provide as follows:

 

“With respect to any
exercise of:  (i) the second
Extension Option, Borrower shall deposit additional funds into the Interest
Reserve Account equal to the greater of (A) the amount necessary to cause
the balance of the Interest Reserve Account to be not less than $11,000,000.00,
or (B) the amount sufficient to result in a Debt Service Coverage Ratio
for the extension term of at least 1.05:1.00 with respect to the Property; and (ii) the
third Extension Option, Borrower shall deposit additional funds into the
Interest Reserve Account in an amount sufficient to result in a Debt Service
Coverage Ratio for the extension term of at least 1.10:1.00 with respect to the
Property;”

 

2.                                       FF&E Reserve Account. 
Notwithstanding any provision in Section 7.3 to the contrary,
provided no Default or Event of Default shall have occurred and be continuing,
Lender shall disburse up to $2,000,000.00 from the FF&E Reserve Fund for
the purpose of advancing or reimbursing Borrower for costs and expenses
incurred in connection with the improvements made at the Property that are
described on Exhibit A attached hereto and made a part hereof,
provided that Borrower satisfies each of the following conditions in connection
with any such disbursement request (collectively, the “Disbursement Conditions”):  (a) Borrower shall provide Lender with
at least five (5) days prior written notice of each requested
disbursement; (b) Borrower shall deliver to Lender invoices evidencing
that the costs for which each such disbursement is requested are due and
payable (or have been paid by Borrower); (c) Borrower shall deliver to
Lender an officer’s certificate confirming that all such costs have been
previously paid by Borrower or will be paid from the proceeds of the requested
disbursement; and (d) Lender may condition the making of a requested
disbursement on (i) reasonable evidence establishing that Borrower has
applied any disbursements previously received by it for the expenses for which
specific disbursements relate, (ii) reasonably satisfactory site
inspections and (iii) receipt of conditional lien releases and waivers
from any contractors, subcontractors and other relevant parties with respect to
the costs for which each such disbursement is requested are due and payable (or
have been paid by Borrower).  Any funds
disbursed from the FF&E Reserve Fund pursuant to this Section 2 shall
be disbursed first from the Non-Room FF&E Funds to the extent that
such amounts are available for such purpose, but if the Non-Room FF&E
Funds are insufficient to fully fund any such disbursement request, then Room FF&E
Funds shall be disbursed for the purpose hereunder.  On or before September 30, 2009,
Borrower shall deposit funds in the FF&E Reserve Fund in an amount equal to
the aggregate amount disbursed after the date hereof, and to such September 30,
2009 date by Lender pursuant to this Section 2 and Borrower’s failure to
so timely replenish the FF&E Reserve Fund by such amount in accordance 

 

3

 

with the terms hereof
shall, without notice or any other action or right to cure, be an Event of
Default under the Loan Agreement and a “Specified Event” hereunder.

 

3.                                       Timeshare Project Proceeds Account. 
Notwithstanding any provision of Section 7.6 of the Loan Agreement
to the contrary, provided no Default or Event of Default shall have occurred
and be continuing and that Borrower satisfies each of the Disbursement
Conditions (defined above) in connection with each disbursement request, Lender
shall disburse up to $2,500,000.00 from the Timeshare Proceeds Project Account
to reimburse Borrower for the costs and expenses incurred in connection with
the improvements to the convention center space at the Property described on Exhibit B
attached hereto and made a part hereof.

 

Notwithstanding any
provision of Section 7.6 of the Loan Agreement to the contrary, except for
the disbursements from the Timeshare Proceeds Project Account in an aggregate
amount of up to $2,500,000.00 described in the immediately preceding paragraph,
no further disbursements shall be made from the Timeshare Proceeds Project
Account without the prior consent of Goldman Sachs Mortgage Company as the
owner of the junior-most participation interest in the Loan (together with its
successors and assigns, “Goldman
Sachs”), which consent may be withheld by Goldman Sachs in its sole
and absolute discretion for any reason or no reason.

 

4.                                       Observation Rights; Notices.

 

(a)                                  BH/RE, L.L.C., a Nevada limited liability
company (“BH/RE”), Equity
Co., L.L.C., a Nevada limited liability company (“EquityCo”), and each of their respective subsidiaries
(together with BH/RE and EquityCo, the “Borrower Entities”) shall allow representatives (each of the
two representatives shall be known individually as a “Lender Representative”
and collectively, as the “Lender Representatives”) from both KeyCorp
Real Estate Capital Markets, Inc., as master servicer for the Loan
(together with its successors and assigns, “Servicer”), and Goldman Sachs to attend all formal (as
distinguished from informal discussions between two owners or members of the
board of managers) meetings (whether conducted in person, by telephone or
otherwise) of the owners or board of managers of any of the Borrower Entities
(including annual, quarterly and any special meetings); provided, however, that
such attendance by the Lender Representatives shall be solely for informational
purposes and the Borrower Entities shall not be required to adopt or implement
any proposal, recommendation or suggestion made by  the Lender Representatives.  The relevant Borrower Entity shall provide
the Lender Representatives prior notice of, and a reasonable opportunity to
attend, any such meetings.  If any Lender
Representative wishes to attend any meeting, but is unable to attend such
meeting in person, the applicable Borrower Entity shall make arrangements to
permit such Lender Representative to attend by teleconference.  Each of the Borrower Entities shall deliver
to the Lender Representatives, simultaneously with sending of the originals,
all copies of written notices of meetings, agendas for meetings, minutes of
meetings or actions in lieu thereof of the owners or board of managers of each
of the Borrower Entities.

 

(b)                                 In addition to Lender’s existing
inspection rights as and to the extent set forth in the Loan Documents, upon
Lender’s request Borrower shall permit Servicer, Goldman Sachs and other owners
of participation interests in the Loan to visit the Property in a collective
meeting or meetings and to have collective meetings with on-site management,
provided that such site visits 

 

4

 

and meetings shall take
place during normal business hours and Borrower shall receive reasonable
advance notice thereof.

 

(c)                                  For purposes of this Section 4, all
required notices and deliveries from the Borrower Entities to the Lender
Representatives shall be given in writing and shall be effective for all
purposes if (i) by hand delivery or (ii) sent by expedited prepaid
courier delivery service, either commercial or United States Postal Service,
with proof of attempted delivery or (iii) by email delivery, provided
notice is also given in one of the forms of notice set forth in clause (i) or
clause (ii) above, addressed as follows:

 

	
  Servicer:

  	
   

  	
  c/o KeyBank Real Estate
  Capital

  
	
   

  	
   

  	
  8115 Preston Road,
  Suite 800

  
	
   

  	
   

  	
  Dallas, Texas 75225

  
	
   

  	
   

  	
  E-mail:
  meade_hubby@keybank.com

  
	
   

  	
   

  	
   

  
	
  Goldman Sachs:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

5.                                       Accounts Payable.

 

(a)                                  In addition to the various reporting
requirements set forth in the Loan Agreement, within fifteen (15) days
following the end of each calendar month, Borrower shall deliver to Lender: (i) a
statement of the accounts payable of Borrower (including aging) for such month,
in form and substance reasonably acceptable to Lender and including reasonably
detailed information with respect to accounts payable that have been paid and
that are still outstanding (including the identities of the persons that have
been paid or are owed such amounts) and a statement that such accounts payable
shall be paid in accordance with Borrower’s current in place procedures for
payment of accounts payable (a statement of which is set forth in Exhibit C
attached hereto and made a part hereof), including the timing for the payment
of accounts payable, and (ii) copies of all Borrower’s bank account
statements for such month and check ledgers evidencing proof of payments for
such month.  Each Officer’s Certificate
delivered to Lender pursuant to Section 5.1.11(c) of the Loan
Agreement shall include a certification of the accuracy and completeness of the
statement delivered pursuant to subsection 5(a)(i) above and shall
constitute a “Loan Document” for purposes of the Loan Agreement and the other
Loan Documents.

 

(b)                                 In addition to Borrower’s existing
obligations to deliver various notices and documents to Lender as set forth in
the Loan Documents, Borrower shall deliver to Lender, promptly upon Borrower’s
receipt or knowledge thereof, copies of any notices of default, lawsuits, lien
filings or other documents or correspondence relating to any claim by a third
party that amounts are past due and owing by Borrower to such third party.

 

(c)                                  If Lender determines in good faith that
any accounts payable of Borrower are more than sixty (60) days past due, Lender
shall have the right, but not the obligation, to pay such accounts payable,
either from amounts then on deposit in the Reserve Funds or as a 

 

5

 

protective advance to
protect Lender’s interests in the Property, and, in either case, Borrower shall
be obligated to pay Lender the amounts so paid within five (5) days of
Lender’s request therefor.

 

6.                                       Conveyance in Lieu of Foreclosure. 
Within ten (10) days after Lender’s written demand therefor after
the occurrence of a Specified Event (as defined below) as determined by Lender
in its sole but good faith discretion, Borrower, each of the PH Entities,
MezzCo, L.L.C., a Nevada limited liability company (“MezzCo”) and TSP
Owner LLC, a Delaware limited liability company (“TSP Owner”) shall
deliver to Lender and Lender shall accept the following duly executed and
acknowledged documents and instruments, all in form satisfactory to Lender in
its sole and absolute discretion, (i) as designated and instructed by
Lender in its sole and absolute discretion, one or more deeds conveying fee
simple title, insurable as such, to all portions of the Property that
constitute real property to Lender or, at Lender’s option, Lender’s designee,
nominee or assignee, (ii) as designated and instructed by Lender in its
sole and absolute discretion, one or more assignments conveying membership
interests of MezzCo in OPBIZ to Lender, or at Lender’s option, Lender’s
designee, nominee or assignee, and (iii) as designated and instructed by
Lender in its sole and absolute discretion, all other deeds, assignments, bills
of sale, certificates, affidavits, resolutions, notices, consents, documents
and instruments which Lender determines to be necessary or desirable to
transfer ownership and operation of the casino and hotel business at the
Property, and any related contract rights or licenses (including liquor
licenses), to the extent assignable pursuant to applicable law, including
applicable gaming and licensing laws, to Lender or, at Lender’s option, Lender’s
designee, nominee or assignee, including all documents and instruments that may
be required to enable Lender to obtain title insurance coverage, satisfactory
to Lender in its sole and absolute discretion, with respect to fee simple
property (collectively, the “Conveyance
Documents”).  Lender
acknowledges that under the current applicable Nevada law, neither gaming
licenses nor liquor licenses are assignable by Borrower.  Borrower, each of the PH Entities, MezzCo and
TSP Owner acknowledge and agree that after the occurrence of a Specified Event,
they shall deliver all Conveyance Documents requested by Lender and that
following delivery of the Conveyance Documents, upon Lender’s request OPBIZ
shall continue to operate the Casino Component until such time that Lender
elects to terminate the Casino Component Lease. 
Lender’s rights pursuant to Section 5.1.26 of the Loan Agreement to
require operation of the Casino Component by OPBIZ following foreclosure, deed
in lieu of foreclosure or similar transfer are specifically preserved.  Borrower, each of the PH Entities, MezzCo and
TSP Owner shall otherwise fully cooperate with Lender in connection with all
requested conveyances, including following the date of the initial conveyance,
and shall provide such additional documents and take such action as Lender
requests from time to time in order to effectuate an orderly transition of ownership
and operation of the casino and hotel business at the Property and the
conveyance of all collateral for the Loan to Lender or its designee, and shall
cooperate with Lender to obtain any required confirmation or approval of such
conveyance from the Rating Agencies and any approvals required under applicable
gaming laws.

 

The
term “Specified Event” means the occurrence of any of the following
events:  (i) any failure to cause
the amounts in any of the Reserve Funds to be replenished as required by the terms
of this Agreement or the Loan Agreement; (ii) any Event of Default
resulting from the failure to pay (A) Debt Service or (B) the Loan on
the Maturity Date; (iii) any Event of Default resulting from the failure
to pay any other monetary amount (other than amounts specified in 

 

6

 

clause (ii) above) due to Lender under the Loan
Documents, provided that (x) Lender has notified Borrower in
writing of same and (y) Borrower shall have failed to pay same within 10
days after the date such notice is sent; (iv) any Event of Default under Section 8.1(a)(vii) of
the Loan Agreement with respect to 
Borrower or any Borrower Party, provided that an involuntary
bankruptcy filed by Lender against Borrower or any other Borrower Party shall
not constitute a “Specified Event” hereunder unless Borrower or any Borrower
Party has consented to the proceeding; (v) any Event of Default under Section 8.1(a)(iv) of
the Loan Agreement with respect to a Transfer in violation of the terms
thereof; (vi) any Event of Default resulting from the failure to pay Taxes
or to keep the Policies in full force and effect, provided that (A) funds
in the Tax and Insurance Escrow Fund have been exhausted and (B) in the
case of an Event of Default resulting from the failure to pay Taxes, such
failure has caused a Lien to be filed or otherwise exist against the Property; (vii) any
Event of Default resulting from the incurrence of any additional Indebtedness
in violation of the terms of the Loan Agreement, other than Permitted
Indebtedness; (viii) any Event of Default resulting from the imposition of
any Lien encumbering the collateral for the Loan, unless (A) the Lien is
being contested by Borrower in good faith pursuant to the applicable terms of
the Loan Agreement, provided that the aggregate amount of all Liens
being so contested shall not exceed $2,500,000 (exclusive of the “Prive Liens”
as defined in the 2008 Modification Agreement), or (B) (x) Lender
shall have notified Borrower in writing of the imposition of such Lien and (y) Borrower
shall have failed to pay same or bond the same with an acceptable title
insurance company within 10 days after the date such notice is sent, provided
that the aggregate amount of all Liens being so bonded shall not exceed
$2,500,000 (exclusive of the “Prive Liens” as defined in the 2008 Modification
Agreement); or (ix) any Event of Default under Section 8.1(a)(xiii)
of the Loan Agreement regarding Borrower’s hotel and casino operation at the
Property.  For purposes of this
definition, the term “Event of Default” shall mean a Default that is continuing
after the expiration of applicable notice and cure or grace periods under terms
of the Loan Documents. The designation of certain events or occurrences as
Specified Events hereunder does not affect in any way either the designation of
any events or occurrences as Events of Default under the Loan Agreement or
Lender’s remedies upon the occurrence of an Event of Default as set forth in
the Loan Agreement.

 

7.                                       Cooperation; Non-Interference. 
Borrower, each PH Entity, Guarantor, MezzCo and TSP Owner, each for
itself and its respective Affiliates that it Controls, hereby covenant and
agree that following the occurrence of an Event of Default: (a) such
parties shall cooperate fully with and assist in Lender’s exercise of its
rights and remedies under the Loan Documents or under applicable laws,
including foreclosure of the Security Instrument and certain other Loan
Documents and appointment of one or more receivers to take possession of the
Property, as determined by Lender in its discretion; and (b) no such party
shall (i) take any action of any kind or nature whatsoever, directly or
indirectly, to delay, oppose, avoid, contest, impede, obstruct, hinder, enjoin
or otherwise interfere in any manner with Lender’s exercise of its rights and
remedies under the Loan Documents or under applicable law, or (ii) allege,
assert or otherwise pursue any claim, defense, affirmative defense,
counterclaim, cause of action, setoff or other right it may have against Lender
relating to Lender’s exercise of its rights and remedies under the Loan
Documents or applicable law, nor shall such party cause, conspire, collude
with, act in concert with, solicit, encourage or support any other Person in
doing or attempting to do any of the foregoing.

 

7

 

8.                                       Warranties
and Representations.  Each of the
Obligors confirms that all warranties and representations previously made by it
in the respective Loan Documents to which it is party were true as of the time
made or deemed made or continued (except to the extent, if any, that the
provisions of this Agreement reflect variances from such existing warranties
and representations with respect to facts and circumstances existing on the
date hereof) and the respective Obligors, each as to itself, further warrant and
represent to Lender as to itself that:

 

(a)                                  The
matters stated in the Recitals set forth above are true and accurate in all
respects, are a material part of this Agreement, and are hereby incorporated by
reference.

 

(b)                                 The
Loan Documents have been duly authorized, executed, and delivered to Lender by
such Obligor, remain in full force and effect as originally written or as
modified herein or as previously modified by mutual written agreement of the
parties, and are valid, binding and enforceable against such Obligor in
accordance with their respective terms.

 

(c)                                  All
liens and security interests created to Lender under the Loan Documents have
been validly created and duly perfected as encumbrances upon the property and
collateral of such Obligor in first or other priority expressly represented by
such Obligor in the Loan Documents.

 

(d)                                 All
indebtedness, liabilities, and obligations created under the Loan Documents are
owing in full, in accordance with the terms thereof, as modified hereby,
without any defense or offset whatsoever, and such Obligor has no defenses,
claims, counterclaims, or other rights that could be asserted to impair, delay,
or adversely affect Lender’s receipt of full payment and performance of all
obligations owed to Lender by such Obligor in accordance with the Loan
Documents with respect to the Loan.

 

(e)                                  Each
Obligor not an individual is duly organized, validly existing, and in good
standing under the laws of its state of organization and is duly qualified as a
foreign entity and is currently in good standing in each state in which such
qualification is required for the conduct of its business as it is currently
being conducted (including, as applicable, the state where the Property is
located).

 

(f)                                    Such
Obligor has full authority and due capacity to execute, deliver, and perform
this Agreement and all documents, instruments and agreements it has executed in
connection herewith.  Such execution,
delivery, and performance has been duly authorized as required under their
organizational documents (if any) or under applicable law, and the individuals
and entities executing this Agreement on their behalf have been duly authorized
and empowered to bind such Obligor by such execution.  The organizational documents of such Obligor
have not been modified since the date of the original Loan closing.

 

(g)                                 This
Agreement has been duly executed and delivered to Lender by such Obligor and is
valid, binding, and enforceable against each of them in accordance with its
terms.

 

(h)                                 Neither
the execution and delivery of this Agreement nor the performance of its terms
and compliance with its conditions will conflict with or result in a breach of
any of 

 

8

 

the terms, conditions or
provisions of or constitute a violation or default under any organizational
document of such Obligor or any contract, agreement, or to the knowledge of
such Obligor, applicable law, regulation, judgment, writ, order or decree to
which such Obligor or any property of such Obligor is subject.

 

(i)                                     To
such Obligor’s knowledge, except as previously disclosed to Lender in writing,
no action, litigation, dispute, suit or proceeding against or that relates in
any adverse manner to such Obligor relating to the Property is now pending before
any court, arbitrator or governmental or administrative body or agency, and to
the knowledge of such Obligor, none is threatened.

 

(j)                                     All
documents and information furnished by such Obligor to Lender with respect to
the Loan or this Agreement are complete and accurate, and none contains any
misrepresentation or misstatement of a material fact or omits to state a
material fact.

 

(k)                                  To
such Obligor’s knowledge, except as previously disclosed to Lender in writing,
such Obligor is in compliance in all material respects with all federal, state
and local laws, rules, and regulations applicable to their respective
properties, operations, businesses, and finances.

 

(l)                                     To
such Obligor’s knowledge, no Event of Default exists under any Loan Document.

 

9.                                       Ratification
of Guaranty Obligations.

 

(a)                                  Each
Guarantor hereby (i) consents to and acknowledges the terms of this
Agreement, (ii) ratifies the Guaranty or Guaranties previously executed by
him or it and confirms that such Guaranty or Guaranties and all waivers, covenants
and agreements therein remain in full force and effect for the benefit of
Lender, (iii) reaffirms his or its continuing liability for payment and/or
performance of all obligations owed to Lender under such Guaranty or
Guaranties, without any defense or offset whatsoever, to the same extent as if
such Guarantor had executed and delivered each such Guaranty to Lender again on
the date of this Agreement, (iv) confirms that such Guaranty or Guaranties
have not been modified or amended except as expressly set forth in this
Agreement and that such Guarantor’s liabilities under such Guaranty or
Guaranties have not been limited, impaired or affected in any manner by any
existing or previous event, fact or circumstance, (v) confirms that all
warranties and representations made in the Guaranty or Guaranties previously
made by him or it were true as of the time made or deemed made or continued
(except to the extent, if any, that the provisions of this Agreement reflect
variances from such existing warranties and representations with respect to
facts and circumstances existing on the date hereof), (vi) represents and
warrants that if such Guarantor is not an individual, it is duly organized,
validly existing, and in good standing under the laws of its state of organization
and is duly qualified as a foreign entity and is currently in good standing in
each state in which such qualification is required for conduct of its business
as it is currently being conducted, (vii) represents and warrants that
such Guarantor has full authority and due capacity to execute, deliver this
Agreement and that such execution and delivery have been duly authorized as
required under its organizational documents (if any) or under applicable law,
and the individuals and entities executing this Agreement on their behalf have
been duly authorized

 

9

 

and empowered to bind
such Guarantor by such execution, and (viii) represents and warrants that
this Agreement has been duly executed and delivered to Lender by such Guarantor
and is binding and enforceable against such Guarantor in accordance with its
terms.

 

(b)                                 Each
Guarantor further acknowledges and agrees that (i) such Guarantor’s
execution of this Agreement is not required under the Guaranties or under any
other Loan Document, (ii) such Guarantor would remain fully liable to
Lender for all obligations owed under the Guaranty or Guaranties executed by
him or it with respect to the Loan as modified by this Agreement whether or not
such Guarantor executed this Agreement or entered into any of the agreements
herein, (iii) Lender has and shall continue to have the right, but shall
not be obligated, to further modify any or all of the terms of the Loan or the
Loan Documents, extend the maturity of the Loan, obtain or release collateral
or security for the Loan, pursue or forbear in the pursuit of remedies, and
take any or all other actions Lender is authorized to take under the respective
Guaranties, this Agreement or any other Loan Document without (except as and to
the extent expressly required by the applicable Loan Document(s)) giving notice
to, obtaining any consent, approval or agreement from, or obtaining execution
of any document by such Guarantor, (iv) the fact that Lender requested
such Guarantor’s execution of this Agreement does not constitute or establish
any course of conduct or course of dealing that modifies any provision of any
Guaranty or affect such Guarantor’s liability thereunder in any manner, and (v) Lender
shall have the full benefit of this Agreement and the Guaranties without any
obligation to obtain any future ratification, reaffirmation, consent, waiver or
other agreement from such Guarantor.

 

10.                                 Ratification
by PH Entities.

 

(a)                                  Each
PH Entity hereby (i) consents to and acknowledges the terms of this
Agreement, (ii) ratifies the Loan Documents previously executed by it and
confirms that such Loan Documents and all waivers, covenants and agreements
therein remain in full force and effect for the benefit of Lender, (iii) reaffirms
its continuing liability for payment and/or performance of all obligations owed
to Lender under such Loan Documents, without any defense or offset whatsoever,
to the same extent as if such PH Entity had executed and delivered each such
Loan Document to Lender again on the date of this Agreement, (iv) confirms
that such Loan Documents have not been modified or amended and that such PH
Entity’s liabilities under such Loan Documents have not been limited, impaired
or affected in any manner by any existing or previous event, fact or
circumstance, (v) confirms that all warranties and representations made in
the Loan Documents previously made by it were true as of the time made or
deemed made or continued (except to the extent, if any, that the provisions of
this Agreement reflect variances from such existing warranties and
representations with respect to facts and circumstances existing on the date
hereof, (vi) represents and warrants that such PH Entity is duly
organized, validly existing, and in good standing under the laws of its state
of organization and is duly qualified as a foreign entity and is currently in
good standing in each state in which such qualification is required for conduct
of its business as it is currently being conducted, (vii) represents and
warrants that such PH Entity has full authority and due capacity to execute,
deliver this Agreement and that such execution and delivery have been duly
authorized as required under its organizational documents or under applicable
law, and the individuals and entities executing this Agreement on its behalf
have been duly authorized and empowered to bind such PH Entity by such
execution, and (viii) represents and warrants that this Agreement 

 

10

 

has been duly executed
and delivered to Lender by such PH Entity and is binding and enforceable
against such PH Entity in accordance with its terms.

 

(b)                                 Each
PH Entity further acknowledges and agrees that (i) such PH Entity’s
execution of this Agreement is not required under any Loan Document, (ii) such
PH Entity would remain fully liable to Lender for all obligations owed under
the Loan Documents previously executed by it with respect to the Loan as
modified by this Agreement whether or not such PH Entity executed this
Agreement or entered into any of the agreements herein, (iii) Lender has
and shall continue to have the right, but shall not be obligated, to further
modify any or all of the terms of the Loan or the Loan Documents, extend the
maturity of the Loan, obtain or release collateral or security for the Loan,
pursue or forbear in the pursuit of remedies, and take any or all other actions
Lender is authorized to take under any Loan Document without (except as and to
the extent expressly required by the applicable Loan Document(s)) giving notice
to, obtaining any consent, approval or agreement from, or obtaining execution
of any document by such PH Entity, (iv) the fact that Lender requested
such PH Entity’s execution of this Agreement does not constitute or establish
any course of conduct or course of dealing that modifies any provision of any
Loan Document or affect such PH Entity’s liability thereunder in any manner,
and (v) Lender shall have the full benefit of this Agreement and the Loan
Documents previously executed by it without any obligation to obtain any future
ratification, reaffirmation, consent, waiver or other agreement from such PH
Entity.

 

11.                                 Modifications
to Loan Documents.  The parties agree
that the Loan Documents are hereby modified in all respects necessary to give
effect to the provisions of this Agreement, and only in such respects, and the
provisions of this Agreement shall control over any contrary or inconsistent
provisions of any other Loan Document. 
In all other respects all Loan Documents shall remain in full force and
effect.  All of Lender’s liens, security
interests, priorities, rights, and remedies under the Loan Documents shall
continue in full force and effect as security for the Loan following the
modification thereof by this Agreement. 
All references in any Loan Document to any other Loan Document shall
hereafter be construed to refer to such other Loan Document as modified by this
Agreement.  For all purposes of all Loan
Documents, this Agreement shall be included within the definition of the term “Loan
Documents.”

 

12.                                 Releases
and Indemnifications.  As a material
part of the consideration for Lender’s execution of this Agreement, Borrower,
each PH Entity and each Guarantor (for purposes of this Section 12 each
such party is sometimes referred to as a “Releasing Party”) for itself hereby:

 

(a)                                  acknowledges,
agrees and affirms that as of the date hereof he or it does not possess (i) any
claims, defenses, offsets, rights of recoupment or counterclaims of any kind or
nature against or with respect to the enforcement or administration of the Loan
or the Loan Documents (including any aspect of the origination, administration
or enforcement thereof) or (ii) any knowledge of any facts or
circumstances that might give rise to or be the basis of any such claims,
defenses, offsets, rights of recoupment or counterclaims.

 

(b)                                 releases
and forever discharges Lender, Goldman Sachs and any other holder of
participation interests in the Loan, and each of their respective
predecessors-in-interest, affiliates, subsidiaries or assigns, and all of their
respective past, present, and future 

 

11

 

shareholders, members,
directors, managers, officers, employees, attorneys, advisers, consultants,
servicers, representatives or agents (collectively, the “Released Parties”) from any and
all existing, future, or potential liabilities, obligations, actions, claims,
causes of action, suits, proceedings, demands, damages, costs and expenses of
every kind whatsoever, whether known or unknown, arising from or relating to
any alleged or actual act, omission, occurrence, or transaction prior to the
date of this Agreement including any of the foregoing relating to the making,
administration, servicing, enforcement, or collection of the Loan, or any of
the foregoing arising from or relating to any discussions or negotiations
between representatives of Lender, Goldman Sachs or any other holder of
participation interests in the Loan or any affiliate or representative of any
of the foregoing, on the one hand, and Borrower, any PH Entity or any Guarantor
or any affiliate or representative of any of the foregoing, on the other hand,
in respect of the Loan or under any theory of “lender liability” arising
therefrom.

 

(c)                                  releases
and forever discharges each of the Released Parties from any and all existing,
future, or potential liabilities, obligations, actions, claims, causes of
action, suits, proceedings, demands, damages, costs and expenses of every kind
whatsoever, whether known or unknown, in connection with or in any way arising
out of this Agreement, the Property, the Loan Documents or the exercise by any
of the Released Parties of any of their rights and remedies under this
Agreement and/or the other Loan Documents, including any of the foregoing in
connection with or in any way arising out of the exercise by Servicer, Goldman
Sachs or any of the other Released Parties of their respective rights under Section 4
of this Agreement.

 

(d)                                 agrees
that none of the Released Parties shall be liable, responsible or accountable
in damages to the Borrower, any PH Entity, any Guarantor or any affiliate of
any of the foregoing for any act taken or the failure to take any such action,
in connection with this Agreement, the Property, the Loan Documents and the
exercise by any of the Released Parties of any of their rights and remedies
under this Agreement and/or the Loan Documents, including any of the foregoing
in connection with or in any way arising out of the exercise by Servicer, Goldman
Sachs or any of the other Released Parties of their respective rights under Section 4
of this Agreement.

 

(e)                                  agrees
that it is the intention of such Releasing Party that the foregoing releases
shall be effective with respect to all matters, past and present, known and
unknown, suspected and unsuspected.  Each
Releasing Party realizes and acknowledges that factual matters now unknown to
it may have given or may hereafter give rise to losses, damages, liabilities, costs
and expenses which are presently unknown, unanticipated and unsuspected, and
each Releasing Party further agrees that the waivers and releases in this
Agreement have been negotiated and agreed upon in light of that realization and
that such Releasing Party nevertheless hereby intends to release, discharge and
acquit the Released Parties from any such unknown losses, damages, liabilities,
costs and expenses.

 

(f)                                    agrees
to indemnify, defend and hold harmless each of the Released Parties from and
against any and all other liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, claims, costs, expenses and disbursements of any
kind or nature whatsoever (including the reasonable fees and disbursements of
counsel for each of the 

 

12

 

Released Parties in
connection with any investigative, administrative or judicial proceeding
commenced or threatened, whether or not such Released Parties shall be
designated a party thereto), that may be imposed upon, incurred by, or asserted
against any of the Released Parties in any manner in connection with or in any
way directly or indirectly arising out of this Agreement, the Property, the
Loan Documents and the exercise by any of the Released Parties of any of their
rights and remedies under this Agreement and/or the Loan Documents (the “Indemnified
Liabilities”).  To the extent that
the undertaking to indemnify, defend and hold harmless set forth in the
previous sentence may be unenforceable because such undertaking violates any
law or public policy, each of Borrower, each PH Entity and each Guarantor shall
pay the maximum portion that is permitted to be paid to satisfy the Indemnified
Liabilities incurred by the Released Parties.

 

(g)                                 acknowledges
that Lender is specifically relying upon such Releasing Party’s acknowledgments
and agreements in this Section 12 in executing this Agreement, and that in
the absence of such agreements Lender would be unwilling to agree to the
consideration provided for in this Agreement.

 

(h)                                 agrees
that all releases and discharges by such Releasing Party in this Agreement
shall have the same effect as if each released or discharged matter had been
the subject of a legal proceeding, adjudicated to final judgment from which no
appeal could be taken and therein dismissed with prejudice.

 

13.                                 Additional
Documents / Further Assurances.  The
parties hereto shall at any time, and from time to time, upon the written
request of Lender, sign and deliver such further documents and do such further
acts and things as Lender may reasonably request to effect the purposes of this
Agreement.

 

14.                                 Time
is of the Essence.  Time is of the
essence with respect to all agreements and obligations of Borrower contained
herein.

 

15.                                 Entire
Agreement; Written Modifications Only. 
This Agreement, the exhibits and schedules attached hereto, and the
documents referred to, contemplated, or required herein, including the Loan
Documents as modified hereby, constitute the sole and entire agreement between
the parties with respect to the subject matter hereof, and there are no other
covenants, promises, agreements or understandings regarding the same.  This Agreement, including the provisions of
this Section 15, may not be modified except by written amendment to this
Agreement signed by the parties affected by the same, and the Parties
hereby:  (a) expressly agree that it
shall not be reasonable for any of them to rely on any alleged, non-written
amendment to this Agreement; (b) irrevocably waive any and all right to
enforce any alleged, non-written amendment to this Agreement; and (c) expressly
agree that it shall be beyond the scope of authority (apparent or otherwise)
for any of their respective agents to agree to any non-written modification of
this Agreement.

 

16.                                 No
Third-Party Beneficiaries.  This
Agreement is solely for the benefit of the parties hereto and no persons other
than the undersigned and the Released Parties shall be entitled to claim or
receive any benefit by reason of this Agreement.

 

13

 

17.                                 Due
Diligence Performed; Parties Fully Informed; No Right to Rely.  Borrower, each PH Entity and each Guarantor
hereby warrants, represents and agrees that it has, by itself and with the
assistance of counsel (or, if without the assistance of counsel, such party
having of its own volition chosen not to seek such assistance), performed any
and all due diligence and investigation it deems necessary or desirable in
connection with making a fully informed decision to enter into and sign this
Agreement.  Such parties are relying on
their own investigations and their own decision-making processes in determining
to sign this Agreement, are not relying on the representations or omissions of
each other or of Lender in so doing, and fully understand the terms and
provisions of this Agreement and of the documents contemplated hereby.

 

18.                                 Severability.  If any one or more of the provisions of this
Agreement are deemed by a court having jurisdiction to be unenforceable under
any present or future law, the remainder of this Agreement shall remain
enforceable in accordance with its original terms to the fullest extent
possible.

 

19.                                 Delay
Not a Waiver.  Neither the failure
nor any delay on the part of Lender to exercise any right, power or privilege
under this Agreement or under any document executed in connection herewith
shall operate as a waiver of such right, power or privilege and any single or
partial exercise of any such right, power or privilege shall not preclude any
other or further exercise thereof.

 

20.                                 Successors
and Assigns.  This Agreement shall be
binding on and shall inure to the benefit of each party’s permitted successors
and assigns.

 

21.                                 Construction
of Provisions.  The following rules of
construction are applicable for the purposes of this Agreement and all
documents and instruments supplemental hereto unless the context clearly
requires otherwise:

 

(a)                                  All
references herein to numbered sections or to lettered exhibits are references
to the sections hereof and the exhibits annexed hereto.

 

(b)                                 The
terms “include,” “including,” and similar terms shall be construed as if
followed by the phrase “without being limited to” or the phrase “without
limitation,” as the context may require.

 

(c)                                  Words
of masculine, feminine or neutral gender shall mean and include the correlative
words of the other genders, and words importing the singular number shall mean
and include the plural, and vice versa.

 

(d)                                 No
inference in favor of or against any party hereto shall be drawn from the fact
that such party has drafted any portion of this Agreement or any other Loan
Document.

 

(e)                                  All
references to the Loan shall be deemed to include all existing or future
modifications, amendments, extensions, restatements, or replacements of the
Loan made by mutual written agreement of the parties.

 

14

 

(f)                                    The
terms “person” and “party” shall mean any individual, sole proprietorship,
partnership, limited liability company, joint venture, trust, unincorporated
organization, association, corporation, institution, entity or government
(whether federal, state, county, city, municipal or otherwise, including an
instrumentality, division, agency, body or department thereof).

 

(g)                                 The
term “or” has, except where otherwise indicated, the inclusive meaning
represented by the phrase “and/or.”

 

22.                                 Notices.  All notices, consents, approvals and requests
required or permitted under the Loan Documents shall be given in accordance
with Section 10.6 of the Loan Agreement addressed as follows (or at such other
address as shall be designated from time to time by any party hereto, as the
case may be, in a notice to the other parties hereto in the manner provided in
said Section 10.6):

 

	
  If to Lender:

  	
   

  	
  Wells Fargo Bank, N.A., as trustee

  
	
   

  	
   

  	
  for the Credit Suisse First Boston

  
	
   

  	
   

  	
  Mortgage Securities Corp. Commercial

  
	
   

  	
   

  	
  Mortgage Pass-Through Certificates,
  Series 2007-TFL2

  
	
   

  	
   

  	
  c/o KeyBank Real Estate Capital

  
	
   

  	
   

  	
  8115 Preston Road, Suite 800

  
	
   

  	
   

  	
  Dallas, Texas 75225

  
	
   

  	
   

  	
  Fax: 800-393-0181

  
	
   

  	
   

  	
  Attn: Meade Hubby

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Daniel Flanigan

  
	
   

  	
   

  	
  Polsinelli Shughart PC

  
	
   

  	
   

  	
  700 W. 47th Street, Suite 1000

  
	
   

  	
   

  	
  Kansas City, Missouri 64112

  
	
   

  	
   

  	
  Fax: 816-753-1536

  
	
   

  	
   

  	
   

  
	
  If to Borrower:

  	
   

  	
  c/o OpBiz, L.L.C.

  
	
   

  	
   

  	
  3667 Las Vegas Boulevard South

  
	
   

  	
   

  	
  Las Vegas, Nevada 89109

  
	
   

  	
   

  	
  Attn: Mark Helm

  
	
   

  	
   

  	
  Fax: (702) 785-5936

  

 

23.                                 Counterparts.  This Agreement may be executed in more than
one counterpart, each of which shall be deemed an original and all of which
together shall constitute one and the same document, binding upon all the
parties hereto notwithstanding that all such parties are not signatories to the
same counterpart.  This Agreement shall
become effective when all parties hereto have executed a counterpart
hereof.  A signature of a party by
facsimile or other electronic transmission shall be deemed to constitute an
original and fully effective signature of such party.

 

15

 

24.                                 Costs
and Expenses.  Without limiting any
other provision of this Agreement or any other Loan Document relating to payment
of expenses, Borrower shall pay or reimburse Lender and any participants in the
Loan and servicers or similar parties with respect thereto, promptly after
demand, for all reasonable out-of-pocket costs and expenses, including
attorneys fees, incurred by Lender in connection with the negotiation,
drafting, implementation, or enforcement of this Agreement.  Any payment or reimbursement made by Borrower
contemporaneously with the execution and delivery of this Agreement shall not
be deemed to limit Borrower’s obligations to pay or reimburse all such expenses
reasonably incurred by Lender, any participants in the Loan and servicers or
similar parties after the date hereof.

 

25.                                 Choice
of Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
applicable to contracts made and performed in such state without regard to
principles of conflicts of laws.

 

26.                                 Conflict.  In the event of any conflict between the
provisions of this Agreement and the provisions of any Loan Document, the
provisions of this Agreement shall control.

 

27.                                 No
Joint Venture, Partnership or Mortgagee-in-Possession.  Nothing in this Agreement, the transactions
to be carried out pursuant to this Agreement or the Loan Documents is intended
to create a joint venture, partnership, tenancy-in-common, or joint tenancy
relationship between or among Borrower and Lender.  Borrower agrees and acknowledges that it is
in sole possession and control of the Property. 
Nothing in this Agreement or the transactions to be carried out pursuant
to this Agreement is intended to, nor shall be deemed to, make or cause Lender
to become a mortgagee-in-possession of the Property, in whole or in part.

 

28.                                 Acknowledgement.  The parties hereto hereby acknowledge and
agree that as of
                    ,
2009, (a) the outstanding principal balance of the Loan was
$                    
and (b) the balance of each of the escrow or reserve accounts held by
Lender was as follows: (i) Required Repairs and Remediation Account $                    ;
(ii) Tax and Insurance Escrow Account
$                    ;
(iii) FF&E Reserve Account
$                    ;
(iv) Interest Reserve Account
$                    ;
(v) Renovation Project Reserve Account
$                    ;
(vi) Timeshare Project Proceeds Account
$                    ;
(vii) Future Project Reserve Account
$                    ;
(viii) General Reserve Account
$                  .

 

[The remainder of
this page intentionally left blank]

 

16

 

IN WITNESS WHEREOF, the
parties hereto have executed this Modification Agreement as of the date first
above written.

 

	
  LENDER:

  	
  WELLS
  FARGO BANK, N.A., AS TRUSTEE FOR THE CREDIT SUISSE FIRST BOSTON MORTGAGE
  SECURITIES CORP. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
  2007-TFL2

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  KeyCorp Real Estate
  Capital

  
	
   

  	
   

  	
  Markets, Inc., an
  Ohio corporation,

  
	
   

  	
   

  	
  as Master Servicer and
  Authorized Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  BORROWER:

  	
  PH FEE OWNER LLC,  

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OPBIZ, L.L.C.,  

  
	
   

  	
  a Nevada limited
  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
					

 

[SIGNATURE CONTINUE ON NEXT PAGE]

 

S-1

 

 

	
  PH
  ENTITIES (FOR PURPOSES OF AGREEING TO SECTIONS [6,
  7, 8, 10, 11, 12 AND 17]:

  	
  PLANET HOLLYWOOD (REGION
  IV), INC.,  a Minnesota corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PLANET HOLLYWOOD
  MEMORABILIA, INC.,

  
	
   

  	
  a Florida corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PLANET HOLLYWOOD INTERNATIONAL,
  INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[SIGNATURE CONTINUE ON NEXT PAGE]

 

S-2

 

	
  GUARANTORS
  (FOR
  PURPOSES OF AGREEING TO SECTIONS [7, 8, 9, 11, 12 AND 17]:

  	
  TROPHY HUNTER INVESTMENTS,
  LTD.,  

  a Florida limited
  partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BAY HARBOUR 90-1, LTD., 

  a Florida limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BAY HARBOUR MASTER, LTD., 

  a Cayman exempted company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DOUGLAS TEITELBAUM, an
  individual

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ROBERT EARL, an individual

  

 

S-3

 

JOINDER TO THIRD
MODIFICATION AGREEMENT

 

The undersigned, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to
be legally bound hereby, join in this Agreement and do hereby consent to the
terms and conditions of this Agreement, but only to the extent the same
specifically applies to them and their respective subsidiaries.

 

	
   

  	
  BH/RE, L.L.C., a Nevada
  limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EQUITY CO., L.L.C., a
  Nevada limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TSP OWNER LLC, a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

SCHEDULE
1

 

Loan
Documents

 

1.                                       Promissory Note by Borrower in favor of
Original Lender

 

2.                                       Deed of Trust, Financing Statement,
Fixture Filing and Security Agreement by Borrower to First American Title
Insurance Company, for the benefit of Original Lender

 

3.                                       Deed of Trust, Financing Statement,
Fixture Filing and Security Agreement by TSP Owner LLC (“TSP Owner”) to First
American Title Insurance Company, for the benefit of Original Lender

 

4.                                       Assignment of Leases, Rents and Security
Deposits by Borrower in favor of Original Lender

 

5.                                       Assignment of Contracts, Operating
Permits and Construction Permits by Borrower in favor of Original Lender

 

6.                                       Guaranty Agreement by Bay Harbour 90-1,
Ltd., Trophy Hunter Investments, Ltd. and Bay Harbour Master Ltd. in favor of
Original Lender

 

7.                                       Guaranty Agreement by Douglas Teitelbaum
in favor of Original Lender

 

8.                                       Guaranty Agreement by Robert Earl in
favor of Original Lender

 

9.                                       Environmental Indemnity Agreement by
Borrower in favor of Original Lender

 

10.                                 Completion Guaranty made by Bay Harbour
90-1, Ltd., Trophy Hunter Investments, Ltd., Bay Harbour Master Ltd. and Robert
Earl in favor of Original Lender

 

11.                                 Restricted Account Agreement (Access
Restricted Immediately) by and among Borrower, Original Lender and Wells Fargo
Bank, National Association

 

12.                                 Bank Acknowledgment by KeyBank, N.A.

 

13.                                 Restricted Account Agreement by and among
Borrower, Original Lender and Wells Fargo Bank, National Association

 

14.                                 Manager Subordination and Cooperation
Agreement by and among Sheraton Operating Corporation and Original Lender

 

15.                                 Licensor Subordination and Cooperation
Agreement by the PH Entities in favor of Original Lender

 

16.                                 Security Agreement by the PH Entities in
favor of Original Lender

 

17.                                 Security Agreement (Copyrights) by OpBiz
in favor of Original Lender

 

 

18.                                 Security Agreement (Trademarks) by OpBiz
in favor of Original Lender

 

19.                                 Security Agreement (Trademarks) by Planet
Hollywood (Region IV), Inc. in favor of Original Lender

 

20.                                 Security Agreement (Copyrights) by Planet
Hollywood International, Inc. in favor of Original Lender

 

21.                                 Collateral Assignment of Interest Rate Cap
Agreement made by Borrower in favor of Original Lender

 

22.                                 Collateral Assignment of Timeshare
Project Proceeds made by Borrower and TSP Owner in favor of Original Lender

 

23.                                 Pledge and Security Agreement made by
MezzCo, L.L.C. in favor of Original Lender

 

24.                                 Pledge and Security Agreement made by
Borrower in favor of Original Lender

 

25.                                 Operations and Maintenance Agreement made
by Borrower in favor of Original Lender

 

26.                                 UCC-1 Financing Statement (DE) — Fee
Owner

 

27.                                 UCC-1 Financing Statement (NV) — OpBiz

 

28.                                 UCC-1 Financing Statement (NV Clark
County) — Fee Owner

 

29.                                 UCC-1 Financing Statement (NV Clark
County) — OpBiz

 

30.                                 UCC-1 Financing Statement (NV) — OpBiz
(IP Collateral)

 

31.                                 UCC-1 Financing Statement (DE) — TSP
Owner

 

32.                                 UCC-1 Financing Statement (NV Clark
County) — TSP Owner

 

33.                                 UCC-1 Financing Statement (MN) — Planet
Hollywood (Region IV), Inc.

 

34.                                 UCC-1 Financing Statement (FL) — Planet
Hollywood Memorabilia, Inc.

 

35.                                 UCC-1 Financing Statement (DE) — Planet
Hollywood International, Inc.

 

36.                                 Collateral Assignment of Interest Rate
Cap Agreement by Borrower in favor of Lender

 

37.                                 Omnibus Amendment of Loan Documents dated
as of July 17, 2007

 

38.                                 Modification Agreement dates as of August 11,
2008

 

 

EXHIBIT
A

 

A-1

 

EXHIBIT
B

 

FF&E remodel of the
convention space to de-theme the existing Aladdin FF&E and refresh the
space.

 

B-1

 

EXHIBIT
C

 

[Account Payable
Procedures]

 

C-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]