Document:

exv10w18w1

      

Exhibit
10.18.1

MODIFICATION AGREEMENT

          THIS MODIFICATION AGREEMENT, dated as of July 31, 2007 (as amended, restated, replaced,
supplemented or otherwise modified from time to time, this “Agreement”), between COLUMN FINANCIAL,
INC., having an address at 11 Madison Avenue, New York, New York 10010 (“Lender”) and the entities
set forth on Schedule I annexed hereto and made a part hereof, each having its principal place of
business at 4445 Willard Avenue, 12th Floor, Chevy Chase, MD 20815 (collectively, and
jointly and severally, “Borrower”).

RECITALS

     A. Lender made a loan (the “Loan”) to Borrower in the original principal amount
of $287,182,422.00 subject to and in accordance with the terms of that certain Amended and
Restated Loan Agreement dated as of March 29, 2007 (the “Existing Loan Agreement”).

     B. The Loan is evidenced by that certain amended and restated promissory note
dated as of March 29, 2007 in the principal amount of $287,182,422.00 (the “Existing
Note”).

     C. Concurrently with the execution and delivery of this Agreement, (1) Lender is
making a $36,140,981.00 mezzanine loan to CSE Casablanca Holdings II, LLC, the owner,
directly or indirectly, of 100% of the ownership interests in Borrower; (2) CSE Casablanca
Holdings II, LLC is contributing the proceeds of said mezzanine loan to Borrower; (3)
Borrower is prepaying $36,140,981.00 of principal of the Loan and Lender is accepting such
prepayment without requiring the payment of any prepayment fee or premium; and (4)
Borrower is executing and delivering to Lender that certain second amended and restated
promissory note dated as of the date hereof in the original principal amount of
$250,000,000.00 (the “Second AR Note”) which amends and restates in its entirety the
Existing Note.

     D. Lender and Borrower desire to modify the Existing Loan Agreement and the
other Loan Documents (as such term is defined in the Existing Loan Agreement) subject to
and in accordance with the terms and provisions of this Agreement.

AGREEMENT

     1. Definitions. All capitalized terms used but not defined in this Agreement
shall have the meanings given to them in the Existing Loan Agreement.

     2. Partial Prepayment of Note. Concurrently with the execution of this
Agreement, Borrower has made a voluntary partial prepayment of the principal amount of the
Note in the amount of $36,140,981.00. Lender hereby accepts such voluntary partial
prepayment and waives the payment of the Prepayment Premium or any other prepayment
fee or premium. The parties hereby stipulate that, as of the date hereof, the outstanding
principal amount of the Note is $250,000,000.00.

     3. Modifications to Existing Loan Agreement.

 

 

          (a) Article I of the Existing Loan Agreement is hereby amended as follows:

          (i) The following new definitions are hereby added to Article I of the Existing Loan
Agreement:

     “Approved Mezzanine Lender” shall mean (i) Column; (ii) a Qualified
Transferee, (iii) any person to whom Column transfers the Mezzanine Loan;
or (iv) a successor holder of the Mezzanine Loan that (A) has been
approved by Lender acting reasonably and (B) after the occurrence of a
Securitization, has obtained a Rating Comfort Letter with respect to the
transfer of the Mezzanine Loan to such holder or (iv) the lender under
any other Approved Mezzanine Loan that has been approved by Lender acting
reasonably and the applicable Rating Agencies.

     “Approved Mezzanine Loan” shall mean (i) the Mezzanine Loan and (ii)
a loan from an Approved Mezzanine Lender to Mezzanine Loan Borrower, the
proceeds of which are used to refinance the Mezzanine Loan, provided
that: (i) such loan shall be secured by the same collateral as the
Mezzanine Loan; (ii) the loan documents evidencing and securing such loan
shall be substantially similar in form and substance to the Mezzanine
Loan Documents or shall have been approved by Lender in its reasonable
discretion; (iii) such loan shall be in an amount that does not exceed
the original principal amount of the Mezzanine Loan, and shall otherwise
be on terms and conditions that are not materially less favorable to the
Mezzanine Loan Borrower than the terms and conditions of the Mezzanine
Loan; (iv) the term of such Approved Mezzanine Loan shall expire no
earlier than the Maturity Date; (v) the Approved Mezzanine Lender shall
enter into an intercreditor agreement on terms and conditions that are
reasonably satisfactory to the Approved Mezzanine Lender and the Senior
Lender, and (vi) if such refinancing of the Mezzanine Loan occurs after a
Securitization, no such refinancing shall be permitted which would result
in a downgrade, qualification or withdrawal of any of the ratings of any
of the Securities issued in such Securitization.

     “Column” shall mean Column Financial Inc.

     “Eligibility Requirements” means, with respect to any Person, that
such Person (i) has total assets (in name or under management) in excess
of $600,000,000 and (except with respect to a pension advisory firm or
similar fiduciary) capital/statutory surplus or shareholder’s equity of
$250,000,000 and (ii) is regularly engaged in the business of

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making or owning commercial real estate loans or operating commercial mortgage properties.

     “Mezzanine Loan” shall mean that certain mezzanine loan in the principal amount of
$36,140,981.00 made on the date hereof by Column to Mezzanine Loan Borrower, and evidenced and
secured by the Mezzanine Loan Documents.

     
“Mezzanine Loan Borrower” shall mean CSE Casablanca Holdings II, LLC, a Delaware limited
liability company.

     “Mezzanine Loan Documents” shall mean (i) that certain Mezzanine Loan Agreement of even date
herewith (the “Mezzanine Loan Agreement”) between Column and Mezzanine Loan Borrower, (ii) that
certain Promissory Note of even date herewith (the “Mezzanine Note”) in the original principal
amount of the Mezzanine Loan made by Mezzanine Loan Borrower and payable to Column (and any
successor holder of the Mezzanine Loan), (iii) that certain Pledge and Security Agreement of even
date herewith (the “Mezzanine Pledge”) made by Mezzanine Loan Borrower in favor of Column, (iv)
each UCC Financing Statement executed by Mezzanine Loan Borrower in favor of Column in connection
with the foregoing and (v) any other “Loan Document”, as defined in the Mezzanine Loan Agreement
referred to in clause (i) above, as each of the foregoing may be modified, amended and restated
from time to time with the consent of Lender. Without limiting the foregoing, the term Mezzanine
Loan Documents shall also include all documents, agreements or instruments evidencing, securing or
delivered to an Approved Mezzanine Lender in connection with any Approved Mezzanine Loan.

     “Mezzanine Loan Liens” shall mean (i) the Liens in favor of the holder of the Mezzanine Loan
created pursuant to the Mezzanine Loan Documents and (ii) Liens on the membership interests held
by Mezzanine Loan Borrower in Borrower pursuant to any other Approved Mezzanine Loan.

     “Monthly Debt Service Payment Amount” shall mean as to each Payment Date, an amount equal to
the scheduled payment of principal and interest payable by Borrower to Lender under this
Agreement.

     “Monthly Mezzanine Debt Service Payment” shall mean as to each Payment Date, an amount equal
to the scheduled payment of principal and interest payable by

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     Mezzanine Loan Borrower pursuant to the terms of the Mezzanine Loan
Documents.

     “Qualified Transferee” shall mean one or more of the following:

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

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

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

               (D) any entity Controlled by any of the entities described in clauses
(A) (B) or (C) above;

               (E) a Qualified Trustee in connection with a securitization of, the
creation of collateralized debt obligations (“CDO”) secured by or financing through
an “owner trust” of, the Mezzanine Loan (collectively, “Securitization Vehicles”), so
long as (A) the special servicer or manager of such Securitization Vehicle has the
Required Special Servicer Rating and (B) the entire “controlling class” of such
Securitization Vehicle, other than with respect to a CDO Securitization Vehicle, is
held by one or more entities that are otherwise Qualified Transferees under clauses
(A), (B), (C), or (D) of this definition; provided that the operative
documents of the
related Securitization Vehicle require that (1) in the case of a CDO Securitization
Vehicle, the “equity interest” in such Securitization Vehicle is owned by one or more
entities that are Qualified Transferees under clauses (A), (B), (C) or
(D) of this
definition and (2) if any of the relevant trustee, special servicer, manager fails to meet
the requirements of this clause (E), such Person must be replaced by a Person meeting
the requirements of this clause (E) within thirty (30) days; or

               (F) an investment fund, limited liability company, limited partnership
or general partnership where a Permitted Fund Manager or an entity that is otherwise
a Qualified Transferee under clauses (A), (B), (C), or (D) of
this definition acts as the
general partner, managing member or fund manager and at least 50% of the equity
interests in such investment vehicle are owned, directly or indirectly, by one or more
entities that are otherwise Qualified Transferees under clauses (A), (B),
(C), or (D) of
this definition.

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

     “Permitted Fund Manager” means any Person that on the date of determination is (i) a
nationally recognized manager of investment funds investing in debt or equity interests
relating to commercial real estate (ii) investing through a fund with committed capital of
at least $250,000,000 and (iii) not subject to a Bankruptcy Action.

     “Qualified Trustee” means (i) a corporation, national bank, national banking
association or a trust company, organized and doing business under the laws of any state
or the United States of America, authorized under such laws to exercise corporate trust
powers and to accept the trust conferred, having a combined capital and surplus of at
least $100,000,000 and subject to supervision or examination by federal or state authority
(ii) an institution insured by the Federal Deposit Insurance Corporation or (iii) an
institution whose long-term senior unsecured debt is rated either of the then in effect
top two rating categories of each of the Rating Agencies.

     “Rating Comfort Letter” shall mean a letter issued by each of the applicable Rating
Agencies which confirms that the taking of the action referenced to therein will not
result in any qualification, withdrawal or downgrading of any existing ratings of
Securities created in a Securitization.

          (ii) The definition of “Cash Management Agreement” is modified by adding the following at the
end thereof: “The term “Cash Management Agreement” shall not include the Mezzanine Cash Management
Agreement.”

          (iii) The definition of “Debt Service Coverage Ratio” is deleted and the following inserted
in its place:

     “Debt Service Coverage Ratio” shall mean a ratio for the applicable
period in which:

	 	(a)	 	the numerator is the Net Cash Flow
(excluding
interest on credit accounts) for such period as
set forth in the financial statements required
hereunder; and
	 
	 	(b)	 	the denominator is the sum of (i) the
Debt
Service due and payable under the Note for such
period and (ii) the scheduled principal and/or

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	 	 	 	interest payments due and payable with respect to the
Mezzanine Loan for such period.

          (iv) The definition of “Environmental Indemnity” is modified by adding the following at the
end thereof: “The term “Environmental Indemnity” shall not include the Mezzanine Loan
Environmental Indemnity.”

          (v) The definition of “Guaranty” is modified by adding the following at the end thereof: “The
term “Guaranty” shall not include the Mezzanine Guaranty.”

          (vi) The definition of “Indebtedness” is modified by adding the following at the end thereof:
“For the purposes hereof, the term “Indebtedness” does not include the obligations secured by the
Assignment of Title Proceeds executed by Borrower on or about the date hereof.”

          (vii) The definition of “Lease Debt Service Coverage Ratio” is deleted and the following is
inserted in its place:

     “Lease Debt Service Coverage Ratio” shall mean a ratio for the
applicable period in which:

	 	(a)	 	the numerator is the Rents (without
duplication)
payable to Borrower under the Operating Leases
for such period; and
	 
	 	(b)	 	the denominator is the sum of (i) the
Debt
Service due and payable under the Note for such
period and (ii) the scheduled principal and/or
interest payable due and payable with respect to
the Mezzanine Loan for such period.

          (viii) The definition of “Lender” is deleted and the following inserted in its place:
“Lender” shall have the meaning set forth in the introductory paragraph hereto, in its capacity as
holder of the Note and the other Loan Documents, together with its successors and assigns in such
capacity.”

          (ix) The definition of “Loan Documents” is modified by adding the following at the end
thereof: “Notwithstanding anything to the contrary in any of the Loan Documents, the term “Loan
Documents” shall not include either (A) the Mezzanine Loan Documents or (B) any intercreditor
agreement, or similar agreement, to which Borrower is not a signatory, it being the intention of
the parties that the rights and obligations of Lender, on one hand, and Borrower and each Affiliate
of Borrower which has any obligations under the Loan Documents, on the other hand, solely as to
each other under each and every one of the Loan Documents shall be unaffected by the existence or
contents of any such agreement, as if such agreement did not exist.”

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          (x) The definition of “Note” is modified by adding the following at the end thereof:
“The term ‘Note’ shall not include Mezzanine Note.”

          (xi) The definition of “Operating Expenses” is modified by the adding the following
immediately after term “Debt Service”; “and debt service on the Mezzanine Loan.”

          (xii) The definition of “Permitted Encumbrances” is modified by adding the following
at the end thereof: “and (g) the Mezzanine Loan Liens”.

          (xiii) The definition of “Spread” is deleted and the following is inserted in its
place:

          “Spread” shall mean 1.5391875634%

          (b) All references in the Existing Loan Agreement to the “Interest Rate Cap
Agreement” shall have the meaning ascribed to the term in the Collateral Assignment of
Interest Rate Cap Agreement (Senior Loan) dated as of the date hereof by CSE Mortgage
LLC (“CSE Mortgage”) in favor of Lender. As of the date hereof, the Collateral Assignment
of Interest Rate Cap Agreement dated as of March 29, 2007 by CSE Mortgage in favor of
Lender and the security interests created thereby, are hereby released. CSE Mortgage is
hereby authorized to file in such place or places as it deems appropriate a termination of the
financing statement previously filed in connection with such Collateral Assignment of
Interest Rate Cap Agreement dated as of March 29, 2007.

          (c) Section 2.5.l(f) of the Existing Loan Agreement is hereby modified by
deleting the words “10% of the original principal amount of the Loan” at the end thereof and
inserting the amount “$25,000,000” in its place.

          (d) Section 2.6.2(b) of the Existing Loan Agreement is hereby modified by
renumbering existing clause (vii) as clause (ix) and inserting the following clauses (vii) and
(viii):

     (vii) If the Mezzanine Loan or any portion thereof is
outstanding, to make payments in the amount of the Monthly
Mezzanine Debt Service Payment into the subordinate cash
management account established under the Mezzanine Loan Agreement;

     (viii) If the Mezzanine Loan or any portion thereof is
outstanding and it is then not a Cash Trap Period, to make payments
in such amounts as shall be stated in a notice from Approved
Mezzanine Lender to Cash Management Bank into the subordinate cash
management account established under the Mezzanine Loan Agreement;
and

          (e) Section 2.8(1) is hereby amended by inserting the word “Mezzanine”
immediately prior to the word “Loan”.

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          (f) Section 2.10 of the Existing Loan Agreement is hereby modified by
adding the following new clause (f) at the end thereof:

     (f) As long as the Mezzanine Loan is outstanding, Mezzanine Borrower has
either (A) properly and timely extended the maturity date of the Mezzanine Loan so
that the extended maturity date of the Mezzanine Loan is the same date as the
applicable Extended Maturity Date; or (B) paid the Mezzanine Loan in full, through
re-financing or otherwise.

          (g) Section 5.2.10(e) of the Existing Loan Agreement is hereby amended by
deleting the word “or” between clauses (i) and (j) and inserting the word “and” in its place.

          (h) The following new Section 7.8 is hereby added to the end of Article VII of the Existing
Loan Agreement:

          Section 7.8 Required Environmental Remediation Funds.

          7.8.1 Deposit. On the Initial Closing Date Borrower deposited with
Lender the amount of $144,950.00 for deposit by Lender into an account (the
“Required Environmental Remediation Account”).

          7.8.2 Required Environmental Remediation Work. Lender
acknowledges that, prior to the date hereof, (a) other than covenants with respect
to
the Gateway Nursing Center, the Pilot Point Countryside Manor and the Amarillo
Country Club Manor, Borrower timely performed and satisfied all covenants made
in Schedule VIII, and (b) no amount in the Required Environmental Remediation
Account have been expended by Lender. Notwithstanding anything to the contrary
in said Schedule VIII, Borrower will perform and satisfy the remaining covenants
set forth on Schedule VIII on or before September 15, 2007. Schedule VIII is
hereby amended to provide, (a) with respect to the Pilot Countryside Manor
facility, “Repair and provide secondary containment for damaged 50-gallon diesel
AST, if legally required, $500”; (b) with respect to the Amarillo Country Club
Manor facility, “Remove or label two (2) unlabeled 55-gallon drums, $500”.

          7.8.3 Disbursement. Provided that there is no uncured Event of
Default, upon Borrower completing the environmental remediation work set forth
in Schedule VIII and providing to Lender the required documentation described
therein, Lender will disburse all monies then in the Required Environmental
Remediation Account promptly after Borrower submits to Lender a written request
for the disbursement of such monies.

          (i) Section 8.1(c) of the Existing Loan Agreement is hereby amended by deleting the words
“10% of the original principal amount of the Loan” in the last two lines thereof and inserting the
amount “$25,000,000” in its place.

          (j) Section 8.1(e) of the Existing Loan Agreement is hereby amended by deleting the amount
“$30 Million” in line 15 thereof and inserting the amount “$26,132,500.00” in its place.

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          (k) Section 8.2(c) of the Existing Loan Agreement is hereby amended by (1) deleting the words
“At any time (whether before or during the occasions of an Event of Default)” at beginning thereof
and inserting the words “At any time during the continuance of an Event of Default” in their place;
(2) inserting the words “during the continuance of an Event of Default” immediately following the
words “from time to time” in the second sentence thereof; and (3) inserting the words “during the
continuance of an Event of Default” at the end of the third sentence thereof.

          (1) Section 9.7 of the Existing Loan Agreement is hereby deleted.

          (m) Schedule I to the Existing Loan Agreement is hereby deleted and Schedule I attached
hereto is inserted in its place.

          (n) Schedule IX of the Existing Loan Agreement is hereby deleted and Schedule IX attached
hereto is inserted in its place.

          (o) All references in the Existing Loan Agreement to the Cash Management Agreement shall mean
the Cash Management Agreement (as such term is defined in the Existing Loan Agreement), as
modified by this Agreement.

          (p) All references in the Existing Loan Agreement to the Loan Agreement shall mean the
Existing Loan Agreement, as modified by this Agreement, but shall not include the Mezzanine Loan
Agreement.

          (q) Clause D of the final flush paragraph of Section 9.4 of the Loan Agreement is hereby
amended by inserting the following immediately after the word “Transfer”: “(other than a
foreclosure, or acceptance of a deed in lieu of foreclosure, with respect to one or more of the
Properties by Lender, or a foreclosure by Mezzanine Lender of or Mezzanine Lender’s acceptance of
an assignment in lieu of foreclosure with respect to all or part of the Pledged Collateral)”.

          (r) Section 9.4 is further modified by adding the following new flush paragraph at the end of
Section 9.4:

          Notwithstanding anything to the contrary in any of the Loan Documents including, without
limitation, anything to the contrary in the immediately preceding paragraphs or elsewhere in this
Loan Agreement, Borrower shall not have any obligations or liabilities hereunder for any loss,
damage, cost, expense, liability, claim or other obligation incurred by Lender (including
reasonable attorneys’ fees and costs reasonably incurred) arising out of or in connection with (i)
any action or inaction of any Pledged Company or any entity owned or controlled by any Pledged
Company but only to the extent such action or inaction results from the exercise of control over
any such Pledged Company or such entity owned or controlled by any Pledged Company by Lender, (ii)
any action or omission which occurs after the completion of a private or public sale of the
Pledged Company Interests (as defined in the Pledge Agreement) or after acceptance of an
assignment in lieu of foreclosure with respect to the Pledged Company Interests or (iii) any act
or omission relating to any Individual Property which occurs after Lender completes a foreclosure
with respect to such

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Individual Property or accepts a deed in lieu of foreclosure with respect to such Individual
Property.

          (s) Lender acknowledges that, pursuant to Section 6.1(g) of the Existing Loan Agreement, as
of the date hereof, to Lender’s actual knowledge, (1) Borrower is maintaining such Policies and
coverages as it is obligated to maintain pursuant to the Loan Agreement; and (2) Borrower has
provided to Lender such certificates and information with respect to the Policies as Borrower is
required to provide to Lender.

          (t) To the extent Lender’s consent is necessary, Lender hereby consents to the execution,
delivery and performance of the Mezzanine Loan Documents and to the transactions contemplated
thereby, including, without limitation,

          (1) The restatement of the limited liability company agreements in the
form executed and delivered on or about the date hereof of (i) some or all of the
Borrower Entities, (ii) the Maryland Guarantors and (iii) the Principals;

          (2) the formation of the Mezzanine Borrower by CSE Casablanca
Holdings LLC (“Holdings”) as a wholly-owned subsidiary of Holdings;

          (3) the pledge and assignment by Holdings to the Mezzanine Borrower
of 100% of its ownership interest in the Pledged Companies;

          (4) the creation and perfection by Mezzanine Lender of its security
interests in the Pledged Collateral;

          (5) the granting of liens by the Mezzanine Borrower in the proceeds of
Rents and other cash flow on the terms and conditions set forth in Mezzanine Cash
Management Agreement; and perfection by Mezzanine Lender of its security interest
in such Rents and other cash flow;

          (6) the granting of liens by Borrower in title insurance proceeds to
which Borrower and its Affiliates may be entitled, and the perfection by Mezzanine
Lender of its security interest in such proceeds; and

          (7) the termination of the original Interest Rate Cap Agreement and
replacement thereby with two new interest rate cap agreements, and the execution of
the respective collateral assignments thereof on the terms and conditions set forth
therein, and the perfection by Mezzanine Lender of its security interests in such
interest rate cap agreements.

Lender represents that no Securitization has occurred prior to the date hereof, and that no
consent of any Rating Agency or Person claiming under or through Lender is required in connection
with the transactions contemplated by this Agreement and the Mezzanine Loan Documents, other than
consents which have been obtained.

          (u) Section 2.6.2(b) of the Existing Loan Agreement is hereby amended by renumbering existing
clause (viii) as clause (x) and inserting the following new clauses (vii) through (ix);

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     (vii) If the Mezzanine Loan (or any portion thereof) is
outstanding, to make payment in the amount of the Monthly
Mezzanine Debt Service Payment into the cash management account
established under the Mezzanine Loan Agreement;

     (viii) If Mezzanine Lender has delivered the Deposit Notice to
the Cash Management Bank as described in Section 3(a) of the
Mezzanine Cash Management Agreement, to make payment in the amount
set forth in the Deposit Notice into the cash management account
established under the Mezzanine Loan Agreement;

     (ix) If Mezzanine Lender has delivered the ED-CTP Notice to
the Cash Management Bank as described in Section 3(a) of the
Mezzanine Cash Management Agreement, to make payment in the amount
set forth in the ED-CTP Notice into the cash management account
established under the Mezzanine Loan Agreement.

          (v) Section 2.8(d) of the Existing Loan Agreement is hereby amended by deleting the phrase
“25% of the number of properties” and replacing it with the phrase “25% of the total number of
properties in all states”.

          (w) Section 4.1.34 of the Existing Loan Agreement is hereby amended by deleting clause (a)
thereof and replacing it with the following, effective as of the Closing Date, “(a) required to be
registered as an “investment company” or a company “controlled” by a Person required to be
registered as an “investment company”, within the meaning of the Investment Company Act of 1940, as
amended.”

     4. Modifications to Cash Management Agreement.

          (a) Section 3(k) of the Cash Management Agreement is hereby amended by
adding the following at the end thereof: “provided that the cash management bank under the
cash management agreement for the Mezzanine Loan is given notice of such replacement.”

          (b) Section 4(a) of the Cash Management Agreement is hereby amended by
renumbering existing clause (viii) as clause (xii) and inserting the following new clauses
(viii) through (x):

     (viii) If the Mezzanine Loan (or any portion thereof) is
outstanding, to make payment in the amount of the Monthly Mezzanine
Debt Service Payment into the cash management account established
under the Mezzanine Loan Agreement;

     (ix) If Mezzanine Lender has delivered the Deposit Notice to
the Cash Management Bank as described in Section 3(a) of the
Mezzanine Cash Management Agreement, to make payment in the amount
set forth in the Deposit Notice into the cash management account
established under the Mezzanine Loan Agreement;

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     (x) If Mezzanine Lender has delivered the ED-CTP Notice to the
Cash Management Bank as described in Section 3(a) of the Mezzanine
Cash Management Agreement, to make payment in the amount set forth
in the ED-CTP Notice into the cash management account established
under the Mezzanine Loan Agreement;

     5. Modifications to Guaranty Agreement.

          (a) Clause (D) of the final flush paragraph of Section 1.2 of the Guaranty
Agreement is hereby amended by inserting the following immediately after the words
“Transfer”: “(other than a foreclosure, or acceptance of a deed in lieu of foreclosure, with
respect to one or more of the Properties by Lender, or a foreclosure by Mezzanine Lender of
or Mezzanine Lender’s acceptance of an assignment in lieu of foreclosure with respect to all
or part of the Pledged Collateral)”;

          (b) Section 1.2 is further modified by adding the following new subsection
(c):

          “(c) Notwithstanding anything to the contrary in any of the Loan Documents, including without
limitation anything to the contrary in the immediately preceding paragraphs or elsewhere in this
Guaranty, Guarantor shall not have any obligations or liabilities hereunder for any loss, damage,
cost, expense, liability, claim or other obligation incurred by Lender (including reasonable
attorneys’ fees and costs reasonably incurred) arising out of or in connection with (i) any action
or inaction of any Pledged Company, or any entity owned or controlled by any Pledged Company, but
only to the extent such action or inaction results from the exercise of control over any such
Pledged Company or such entity owned or controlled by any Pledged Company by Lender, (ii) any
action or omission which occurs after the completion of a private or public sale of the Pledged
Company Interests (as defined in the Pledge Agreement) or after acceptance of an assignment in lieu
of foreclosure with respect to the Pledged Company Interests or (iii) any act or omission relating
to any Individual Property which occurs after Lender completes a foreclosure with respect to such
Individual Property or accepts a deed in lieu of foreclosure with respect to such Individual
Property.

     6. Representations and Warranties. Without limiting in any way any
representation or warranty in any Loan Document, Borrower represents and warrants to
Lender as follows:

          (a) The execution and delivery by Borrower of this Agreement and Borrower’s performance of its
obligations hereunder provided for in this Agreement (i) have been duly authorized by all requisite
action on the part of Borrower, (ii) will not violate any provision of any applicable legal
requirements, any order, writ, decree, injunction or demand of any court or other governmental
authority, any organizational document of Borrower or any indenture or agreement or other
instrument to which Borrower is a party or by which the Borrower is bound, (iii) will not be in
conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a
default under, or result in the creation or imposition of any lien of any nature whatsoever upon
any of the property or assets of the Borrower pursuant to, any indenture or agreement or instrument
and (iv) have been duly executed and

12

 

delivered by Borrower. Except for those obtained or filed on or prior to the date hereof, the
Borrower is not required to obtain any consent, approval or authorization from, or to file any
declaration or statement with, any governmental authority or other agency in connection with or as
a condition to the execution, delivery or performance of this Agreement. This Agreement has been
duly authorized, executed and delivered by Borrower.

               (b) This Agreement is a legal, valid and binding obligation of
Borrower, enforceable against the Borrower in accordance with its terms, subject to
bankruptcy, insolvency and other limitations on creditors’ rights generally and to equitable
principles.

               (c) There are no existing claims or causes of action by Borrower
against Lender relating to or arising out of the Existing Loan, and the Loan Documents and
there are no offsets or defenses by Borrower to the payment of any amounts required to be
paid by Borrower under the Loan Documents, or otherwise to the enforcement by Lender of
the Loan Documents.

     7. Miscellaneous.

          (a) All references in the Loan Documents to the “Loan Agreement” shall
hereafter mean the Existing Loan Agreement, as modified by this Agreement, and as it may
be amended, modified, restated, consolidated or supplemented from time to time after the
date hereof, but shall not include the Mezzanine Loan Agreement.

          (b) At any time and from time to time, Mezzanine Borrower may refinance
the Mezzanine Loan with an Approved Mezzanine Loan. At any time and from time to time,
Mezzanine Borrower and those of its Affiliates who have obligations under the Mezzanine
Loan may amend or modify the Mezzanine Loan with Lender’s prior consent, which consent
shall not be reasonably withheld, conditioned or delayed provided that the Mezzanine Loan
remains an Approved Mezzanine Loan.

          (c) All references in the Loan Documents to the “Note” shall hereafter
mean the Second AR Note, as it may be amended, modified, restated, consolidated or
supplemented from time to time after the date hereof, but shall not include the Mezzanine
Note. Lender hereby represents to Borrower that the original of that certain Promissory Note
dated December 1, 2006 by Borrower in the original principal amount of $287,182,422 has
been endorsed by Lender with the following legend on the face and signature pages thereof:
“This Promissory Note has been amended and restated in its entirety by that certain Amended
and Restated Promissory Note made by Borrower to Lender dated March 29, 2007.” Lender
covenants that, within 10 Business Days of the date hereof, Lender shall cause (1) the
original of the Existing Note to be endorsed by Lender with the following legend on the face
and signature pages thereof: “This Promissory Note has been amended and restated in its
entirety by that certain Second Amended and Restated Promissory Note made by Borrower
to Lender dated as of July 31, 2007”, and (2) a true and complete copy thereof, including
such endorsement, to be delivered to Borrower

          (d) This Agreement constitutes the entire agreement among the parties
concerning its subject matter. This Agreement shall inure to the benefit of and be binding

          
13

 

upon the parties and their respective heirs, successors and assigns. This Agreement may be
executed in two or more counterparts and by facsimile each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.

          (e) Borrower and Lender confirm and ratify the terms and provisions of the
Loan Documents, as modified hereby, and agree that the Loan Documents, as so modified,
remain in full force and effect as of the date hereof, and nothing herein contained shall be
construed to impair the security or affect the first priority of the lien of any mortgage, nor
impair any rights or powers which Lender or its successors may have for nonperformance of
any term of any of the Loan Documents. Borrower and Lender further reaffirm and ratify
their respective obligations to be bound by and perform all of the terms of the Loan
Documents.

          (f) This Agreement shall be governed by and construed in accordance with
the laws of the State of New York (without giving effect to New York’s principles of conflict
of law).

          (g) Borrower confirms and acknowledges that concurrently with the
execution and delivery of this Agreement, Lender has paid to Borrower all costs and
expenses (including reasonable attorneys’ fees) incurred by Borrower in connection with the
negotiation, execution and delivery of this Agreement, the Mezzanine Loan Documents and
the other instruments and agreements contemplated hereby or thereby (including all actual
costs incurred by any Rating Agencies, the Cap Provider, the Cash Management Bank, the
Lockbox Bank and the Title Company in connection with the transactions contemplated by
this Agreement, the Mezzanine Loan Documents and the other instruments and agreements
contemplated hereby or thereby).

     8. Intercreditor Agreement.

     Borrower hereby acknowledges and agrees that any intercreditor agreement or other agreement
entered into between Lender and Mezzanine Lender will be solely for the benefit of, and solely
bind, Lender and Senior Lender, and that Borrower and Owner shall not be intended third-party
beneficiaries of any of the provisions therein, shall have no rights thereunder and shall not be
entitled to rely on any of the provisions contained therein, and such agreement shall not bind
Borrower or Owner.

(Signatures on following page)

14

 

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

BORROWER:

	 	 	 
	CSE Albany LLC,

	 	CSE Green Bay LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Amarillo LLC, d/b/a CapitalSource
	 	 
	Amarillo LLC,

	 	CSE Hilliard LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Augusta LLC,

	 	CSE Huntsville LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Bedford LLC,

	 	CSE Indianapolis — Continental LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Cambridge LLC,

	 	CSE Indianapolis — Greenbriar LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Canton LLC,

	 	CSE Issaquah LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Cedar Rapids LLC,

	 	CSE Jeffersonville — Hillcrest Center LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Chelmsford LLC,

	 	CSE Jeffersonville — Jennings House LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Chesterton LLC,

	 	CSE Kingsport LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Claremont LLC, d/b/a CapitalSource
	 	 
	Claremont LLC,

	 	CSE Lake City LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Denver LLC,

	 	CSE Lake Worth LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Douglas LLC,

	 	CSE Lakewood LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Dumas LLC,

	 	CSE Las Vegas LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Elkton LLC,

	 	CSE Lawrenceburg LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Fort Wayne LLC,

	 	CSE Lexington Park LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Frankston LLC, d/b/a CapitalSource
	 	 
	Frankston LLC,

	 	CSE Ligonier LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Georgetown LLC,

	 	CSE Live Oak LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Logansport LLC,

	 	CSE Shawnee LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Lowell LLC,

	 	CSE Stillwater LLC,

 

 

	 	 	 
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Mobile LLC,

	 	CSE Taylorsville LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	 

	 	CSE Texarkana LLC, d/b/a CapitalSource
	CSE Moore LLC,

	 	Texarkana LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	 

	 	CSE Texas City LLC, d/b/a CapitalSource Texas
	CSE Omro LLC,

	 	City LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Orange Park LLC,

	 	CSE Upland LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Orlando — Pinar Terrace Manor LLC,

	 	CSE West Point LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Orlando — Terra Vista Rehab LLC,

	 	CSE Wichita LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Piggott LLC,

	 	CSE Winter Haven LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Pilot Point LLC, d/b/a CapitalSource Pilot
	 	 
	Point LLC,

	 	CSE Yorktown LLC,
	a Delaware limited liability company

	 	a Delaware limited liability company
	CSE Pittsburg LLC, d/b/a CapitalSource
	 	 
	Pittsburg LLC,

	 	CSE Arden L.P.,
	a Delaware limited liability company

	 	a Delaware limited partnership
	 
	CSE Ponca City LLC,

	 	By: CSE North Carolina Holdings I LLC

a Delaware limited liability company, its

general partner

	a Delaware limited liability company
	 	 
	CSE Port St. Lucie LLC,

	 	CSE King L.P.,
	a Delaware limited liability company

	 	a Delaware limited partnership
	 
	CSE Richmond LLC,

	 	By: CSE North Carolina Holdings I LLC

a Delaware limited liability company, its

general partner

	a Delaware limited liability company
	 	 
	CSE Safford LLC,

	 	CSE Knightdale L.P.,
	a Delaware limited liability company

	 	a Delaware limited partnership
	CSE Salina LLC,
	 	 
	a Delaware limited liability company 

CSE Seminole LLC,

	 	By: CSE North Carolina Holdings I LLC

a Delaware limited liability company, its

general partner

	a Delaware limited liability company
	 	 

 

 

	 	 	 	 	 
	CSE Lenoir L.P.,

a Delaware limited partnership

By: CSE North Carolina Holdings I LLC 

       a Delaware
limited liability company, its
         general partner

CSE Walnut Cove L.P.,

a Delaware limited partnership

By: CSE North Carolina Holdings I LLC 

       a Delaware
limited liability company, its
         general partner

CSE Woodfin L.P.,

a Delaware limited partnership

By: CSE North Carolina Holdings I LLC 

       a Delaware
limited liability company, its
         general partner
 	 

	 	 	 	 	 
	 	By:  	/s/ Jeffrey A. Lipson
 	 
	 	 	Name:  	Jeffrey A. Lipson  	 
	 	 	Title:  	Vice President & Treasurer 	 
	 

	 	 	 	 	 
	[Signatures continue on following page] 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CSE Cambridge Realty LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jeffrey A. Lipson
 	 
	 	 	Name:  	Jeffrey A. Lipson 	 
	 	 	Title:  	Vice President & Treasurer 	 
	 
	 	CSE Elkton Realty LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/
Jeffrey A. Lipson
 	 
	 	 	Name:  	Jeffrey A. Lipson 	 
	 	 	Title:  	Vice President & Treasurer 	 
	 
	 	CSE Lexington Park Realty LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jeffrey A. Lipson
 	 
	 	 	Name:  	Jeffrey A. Lipson 	 
	 	 	Title:  	Vice President & Treasurer 	 
	 

[Signatures continue on following page]

 

 

	 	 	 	 	 
	 	COLUMN FINANCIAL, INC.

 	 
	 	By:  	/s/ Susana Iannicelli
 	 
	 	 	Name:  	Susana Iannicelli 	 
	 	 	Title:  	Vice President	 

 

 

	 	 	 	 	 

CONSENT AND CONFIRMATION OF GUARANTOR

     CAPITALSOURSE INC.,
a Delaware corporation (“Guarantor”), as guarantor of the obligations of the
borrowers listed above (collectively, “Borrower”), with respect to a loan made by Column
Financial, Inc. (“Lender”) to Borrower in the original principal amount of $287,182,422.00 (the
“Loan”) pursuant to a certain guaranty
agreement dated as of March 29, 2007, in favor of Lender
(said guaranty, the “Guaranty”), hereby (a) consents to the execution and delivery by Borrower of
the modification agreement dated as of the date hereof (the “Modification Agreement”) by and
between Borrower and Lender to which this consent and confirmation is attached, which Modification
Agreement modifies certain of the obligations of Borrower guarantied by Guarantor pursuant to the
Guaranty; and (b) confirms and agrees that the execution and delivery by Borrower of the
Modification Agreement, shall not affect the obligations of Guarantor under the Guaranty, which
obligations of Guarantor under the Guaranty are unmodified and in full force and effect, except as
provided in the Modification Agreement and except that all references in the Guaranty to the
obligations of Borrower to Lender or to the Loan Agreement, shall mean such obligations or the
Existing Loan Agreement (as such term is defined in the Modification Agreement), as modified by
the Modification Agreement.

Dated: as
of July 31, 2007

	 	 	 	 	 
	 	CAPITALSOURCE INC.

 	 
	 	By:  	/s/ Jeffrey Lipson
 	 
	 	 	Name:  	Jeffrey Lipson 	 
	 	 	Title:  	Treasurer 	 

 

 

	 	 	 	 	 

CONSENT AND CONFIRMATION OF GUARANTOR

     CSE CAMBRIDGE REALTY LLC, a Delaware limited liability company (“Guarantor”), as guarantor of
the obligations of the borrowers listed above (collectively, “Borrower”), with respect to a loan
made by Column Financial, Inc. (“Lender”) to Borrower in the original principal amount of
$287,182,422.00 (the “Loan”) pursuant to a certain amended and restated guaranty agreement dated as
of March 29, 2007, in favor of Lender (said guaranty, the “Guaranty”), hereby (a) consents to the
execution and delivery by Borrower of the modification agreement dated as of the date hereof (the
“Modification Agreement”) by and between Borrower and Lender to which this consent and confirmation
is attached, which Modification Agreement modifies certain of the obligations of Borrower
guarantied by Guarantor pursuant to the Guaranty; and (b) confirms and agrees that the execution
and delivery by Borrower of the Modification Agreement, shall not affect the obligations of
Guarantor under the Guaranty, which obligations of Guarantor under the Guaranty are unmodified and
in full force and effect, except that all references in the Guaranty to the obligations of Borrower
to Lender or to the Loan Agreement, shall mean such obligations or the Existing Loan Agreement (as
such term is defined in the Modification Agreement), as modified by the Modification Agreement.

Dated: as of July 31, 2007

	 	 	 	 	 
	 	CSE CAMBRIDGE REALTY LLC

a Delaware limited liability company

 	 
	 	By:  	/s/  Jeffrey A. Lipson
 	 
	 	 	Name:  	Jeffrey A. Lipson 	 
	 	 	Title:  	Vice President & Treasurer 	 

 

 

	 	 	 	 	 

CONSENT AND CONFIRMATION OF GUARANTOR

     
CSE ELKTON REALTY LLC, a Delaware limited liability company (“Guarantor”),
as guarantor of the obligations of the borrowers listed above (collectively, “Borrower”), with
respect to a loan made by Column Financial, Inc. (“Lender”) to Borrower in the original principal
amount of $287,182,422.00 (the “Loan”) pursuant to a certain amended and restated agreement dated
as of March 29, 2007, in favor of Lender (said guaranty, the “Guaranty”), hereby (a) consents to
the execution and delivery by Borrower of the modification agreement dated as of the date hereof
(the “Modification Agreement”) by and between Borrower and Lender to which this consent
and confirmation is attached, which Modification Agreement modifies certain of the obligations of
Borrower guarantied by Guarantor pursuant to the Guaranty; and (b) confirms and agrees that the
execution and delivery by Borrower of the Modification Agreement, shall not affect the obligations
of Guarantor under the Guaranty, which obligations of Guarantor under the Guaranty are unmodified
and in full force and effect, except that all references in the Guaranty to the obligations of
Borrower to Lender or to the Loan Agreement, shall mean such obligations or the Existing Loan
Agreement (as such term is defined in the Modification Agreement) as modified by the Modification
Agreement.

Dated: as of July 31, 2007

	 	 	 	 	 
	 	CSE ELKTON REALTY LLC

a Delaware limited liability company

 	 
	 	By:  	/s/ Jeffrey A. Lipson
 	 
	 	 	Name:  	Jeffrey A. Lipson 	 
	 	 	Title:  	Vice President & Treasurer 	 

 

 

	 	 	 	 	 

CONSENT AND CONFIRMATION OF GUARANTOR

     CSE LEXINGTON PARK REALTY LLC, a Delaware limited liability company
(“Guarantor”), as
guarantor of the obligations of the borrowers listed above
(collectively, “Borrower”), with
respect to a loan made by Column Financial, Inc. (“Lender”) to Borrower in the original
principal amount of $287,182,422.00 (the Loan”) pursuant to a certain amended and restated
guaranty agreement dated as of March 29, 2007, in favor of Lender (said guaranty, the Guaranty”),
hereby (a) consents to the execution and delivery by Borrower of the modification agreement dated
as of the date hereof (the Modification Agreement”) by and between Borrower and Lender to which
this consent and confirmation is attached, which Modification Agreement modifies certain of the
obligations of Borrower guarantied by Guarantor pursuant to the Guaranty; and (b) confirms and
agrees that the execution and delivery by Borrower of the Modification Agreement, shall not affect
the obligations of Guarantor under the Guaranty, which obligations of Guarantor under the Guaranty
are unmodified and in full force and effect, except mat all references in the Guaranty to the
obligations of Borrower to Lender or to the Loan Agreement, shall mean such obligations or the
Existing Loan Agreement (as such term is defined in the Modification Agreement), as modified by the
Modification Agreement.

Dated: as of July 31, 2007

	 	 	 	 	 
	 	CSE LEXINGTON PARK REALTY LLC

a Delaware limited liability company

 	 
	 	By:  	/s/ Jeffrey A. Lipson
 	 
	 	 	Name:  	Jeffrey A. Lipson 	 
	 	 	Title:  	Vice President & Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	The provisions of Section 4 are hereby consented to:

KEY BANK, N.A.

 	 
	 	By:  	/s/ Diane Haislip 	 
	 	 	Name:  	Diane Haislip 	 
	 	 	Title:  	VICE PRESIDENTexv10w19

Exhibit
10.19

GUARANTY AGREEMENT

     THIS GUARANTY AGREEMENT (this “Guaranty”) is executed as of March 29, 2007, by CAPITALSOURCE
INC., a Delaware corporation, having an address at c/o CapitalSource Finance LLC, 4445 Willard
Avenue, 12th Floor, Chevy Chase, MD 20815 (“Guarantor”), for the benefit of COLUMN FINANCIAL,
INC., a Delaware corporation, having an address at 11 Madison Avenue, New York, New York 10010
(“Lender”).

W
I T N E S S E
T H :

     WHEREAS, pursuant to that certain Amended and Restated Promissory Note, dated of even date
herewith, executed by each of the parties set forth on Schedule I hereto (collectively,
jointly and severally, “Borrower”), arid payable to the order of Lender in the original principal
amount of Two Hundred Eighty Seven Million One Hundred Eighty Two Thousand Four Hundred Twenty-Two
and 00/100 Dollars ($287, 182, 422.00) (as the same may be amended, restated, replaced, supplemented,
or otherwise modified from time to time, the “Note”), Borrower has become indebted, and may from
time to time be further indebted, to Lender with respect to a loan
(“Loan”), made pursuant to that
certain Amended and Restated Loan Agreement, of even date herewith, between Borrower and Lender (as
the same may be amended, restated, replaced, supplemented, or otherwise modified from time to time,
the “Loan Agreement”), which Loan is secured by, among other things, the liens and security
interests of certain mortgages, deeds of trust and/or deeds to secure debt, each dated December 1,
2006 (as the same have been or may be amended, restated, replaced, supplemented, or otherwise
modified from time to time, collectively, the “Mortgages”), and further evidenced, secured or
governed by other instruments and documents executed in connection with the Loan (together with the
Note, the Loan Agreement and Mortgages, the “Loan Documents”); and

     WHEREAS, the Loan is an amendment and restatement of the Original Loan evidenced and secured
by the Original Loan Agreement and the other Original Loan Documents; and

     WHEREAS, this Guaranty is given to induce Lender to release CSE Mortgage LLC, a Delaware
limited liability company, from its obligations under that certain Guaranty Agreement dated
December 1,2006, given in connection with the Original Loan;

     WHEREAS, Lender is not willing to make the Loan, or otherwise extend credit, to Borrower
unless Guarantor enters into this Guaranty; and

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

     NOW, THEREFORE, as an inducement to Lender to make the Loan to Borrower, and for other good
and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged,
the parties do hereby agree as follows:

 

 

ARTICLE
I

NATURE
AND SCOPE OF GUARANTY

     1.1 Guaranty of Obligation. Guarantor hereby irrevocably and unconditionally
guarantees to Lender and its successors and assigns the payment and performance of the Guaranteed
Obligations as and when the same shall be due and payable, whether by lapse of time, by
acceleration of maturity or otherwise. Guarantor hereby irrevocably and unconditionally covenants
and agrees that it is liable for the Guaranteed Obligations as a primary obligor.

     1.2
Definition of Guaranteed Obligations. (a) As used herein, the term “Guaranteed
Obligations” means (i) the obligations and liabilities of Borrower to Lender for any loss, damage,
cost, expense, liability, claim or other obligation incurred by Lender (including reasonable
attorneys’ fees and costs reasonably incurred) arising out of or in connection with any of the
following, which Guaranteed Obligations shall also include events arising from and after December
1, 2006:

          (A) fraud or intentional misrepresentation by Borrower, Guarantor or any Affiliate thereof in
connection with the Loan or the Original Loan;

          (B) waste by Borrower, Guarantor or any Affiliate thereof to one or more of the Individual
Properties;

          (C) the gross negligence or willful misconduct of Borrower, Guarantor or any Affiliate
thereof;

          (D) the breach of any representation, warranty, covenant or indemnification provision in the
Environmental Indemnity concerning environmental laws, hazardous substances and asbestos and any
indemnification of Lender with respect thereto;

          (E) the removal or disposal by Borrower, Guarantor or any Affiliate of
any portion of one or more of the Properties after the occurrence and during the continuance
of an Event of Default;

          (F) the misappropriation or conversion by Borrower of (A) any
Insurance Proceeds paid by reason of any Casualty, (B) any Awards received in connection with
a Condemnation, (C) any Rents after the occurrence and during the continuance of an Event of
Default, or (D) any Rents paid more than one (1) month in advance;

          (G) failure
to pay charges for labor or materials or other charges
incurred by the Borrower that create Liens on any portion of the Properties;

          (H) any security deposits, advance deposits or any other deposits collected by Borrower,
Guarantor or any Affiliate thereof with respect to the Properties which are not delivered to
Lender upon a foreclosure of the Properties or action in lieu thereof, except to the extent any
such deposits were applied in accordance with the terms and conditions of any

-2-

 

of the Leases prior to the occurrence of the Event of Default that gave rise to such foreclosure or
action in lieu thereof;

          (I) any amounts received by Borrower or any Affiliate thereof that are not deposited into the
Lockbox Account to the extent required to be so deposited under the Cash Management Agreement or
the Loan Agreement;

          (J) if (1) Borrower fails to permit on-site inspections of any of the Properties, subject to
terms of each respective Operating Lease, upon the request of Lender or (2) Borrower fails to
provide financial information concerning Borrower, Principal or Guarantor in its possession (or
financial information which could be obtained by Borrower through commercially reasonable efforts)
or (3) Borrower fails to provide financial information in its possession or control (or financial
information which could be obtained by Borrower through commercially reasonable efforts)
concerning any Operator Tenant or collections under the Operating Leases, in each case, to the
extent required by and in accordance with the terms and provisions of the Loan Agreement;

          (K) any
breach of the representations and warranties set forth in Section 4.1.30(a) and
(b) of the Loan Agreement (except for any representation or warranty that Borrower will remain
solvent, maintain adequate capital or pay its debts or liabilities as the same may become due).

Notwithstanding anything to the contrary in this Guaranty, the Loan Agreement, the Note or any of
the Loan Documents, Guarantor shall be liable for the full amount of the Debt: (A) in the event
of: (I) any Borrower filing a voluntary petition under the Bankruptcy Code or any other Federal or
state bankruptcy or insolvency law; (II) the filing of an involuntary petition against any
Borrower under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law,
which is assisted, supported, aided or abetted by Borrower and/or Guarantor or with respect to
which Borrower and/or Guarantor fails to contest (where good grounds exist for such contest);
(III) any Borrower filing an answer consenting to or otherwise acquiescing in or joining in any
involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other
Federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited
petitioning creditors for any involuntary petition from any Person; (IV) any Borrower consenting
to or acquiescing in or joining in an application for the appointment of a custodian, receiver,
trustee, or examiner for any Borrower or any material portion of any Property; or (V) any Borrower
making a general assignment for the benefit of creditors, or admitting, in writing or in any legal
proceeding, its insolvency or inability to pay its debts as they become due; (B) if any Borrower
fails to maintain its status as a Single Purpose Entity as required by, and in accordance with,
the terms and provisions of the Loan Agreement or the other Loan Documents (except for any
covenant to remain solvent, maintain adequate capital or pay its debts or liabilities as the same
may become due or the additional covenant to comply with any assumptions in the Insolvency Opinion
or any Additional Insolvency Opinion); (C) if Borrower fails to obtain Lender’s prior consent to
any Indebtedness or voluntary Lien encumbering one or more of the Individual Properties or any
material portion of one or more of the Individual Properties to the extent required by the Loan
Agreement; or (D) if Borrower fails to obtain Lender’s prior consent to any Transfer to the extent
required by the Loan Agreement.

-3-

 

(b) Notwithstanding anything to the contrary in any of the Loan Documents, Lender shall not be
deemed to have waived any right which Lender may have under Section 506(a), 506(b), 1111(b) or any
other provisions of the U.S. Bankruptcy Code to file a claim against Borrower or Guarantor for the
full amount of the Debt secured by the Mortgages or to require that all collateral shall continue
to secure all of the Debt owing to Lender in accordance with the Loan Documents. Notwithstanding
anything to the contrary contained herein, this Guaranty is not secured by any collateral
furnished by Guarantor.

     1.3
Nature of Guaranty.  This Guaranty is an irrevocable, absolute, continuing
guaranty of payment and performance and not a guaranty of collection. This Guaranty may not be
revoked by Guarantor and shall continue to be effective with respect to any Guaranteed Obligations
arising or created after any attempted revocation by Guarantor. The fact that at any time or from
time to time the Guaranteed Obligations may be increased or reduced shall not release or discharge
the obligation of Guarantor to Lender with respect to the Guaranteed Obligations. This Guaranty
may be enforced by Lender and any subsequent holder of the Note and shall not be discharged by the
assignment or negotiation of all or part of the Note.

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

     1.5 Payment By Guarantor. If all or any part of the Guaranteed Obligations shall not
be punctually paid when due, whether upon demand, maturity, acceleration or otherwise, Guarantor
shall, immediately upon demand by Lender, and without presentment, protest, notice of protest,
notice of non-payment, notice of intention to accelerate the maturity, notice of acceleration of
the maturity, or any other notice whatsoever, pay in lawful money of the United States of America,
the amount due on the Guaranteed Obligations to Lender at Lender’s address as set forth herein.
Such demand(s) may be made at any time coincident with or after the time for payment of all or
part of the Guaranteed Obligations, and may be made from time to time with respect to the same or
different items of Guaranteed Obligations. Such demand shall be deemed made, given and received in
accordance with the notice provisions hereof.

     1.6 No Duty To Pursue Others. It shall not be necessary for Lender (and Guarantor
hereby waives any rights which Guarantor may have to require Lender), in order to enforce the
obligations of Guarantor hereunder, first to (a) institute suit or exhaust its remedies against
Borrower or others liable on the Loan or the Guaranteed Obligations or any other person, (b)
enforce Lender’s rights against any collateral which shall ever have been given to secure the
Loan, (c) enforce Lender’s rights against any other guarantors of the Guaranteed Obligations, (d)
join Borrower or any others liable on the Guaranteed Obligations in any action seeking to enforce
this Guaranty, (e) exhaust any remedies available to Lender against any collateral which shall
ever have been given to secure the Loan, or (f) resort to any other means of obtaining

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payment of the Guaranteed Obligations. Lender shall not be required to mitigate damages or take
any other action to reduce, collect or enforce the Guaranteed Obligations.

     1.7
Waivers. Guarantor acknowledges and consents to the provisions of the Loan
Documents, and hereby waives notice of (a) any loans or advances made by Lender to Borrower, (b)
acceptance of this Guaranty, (c) any amendment or extension of the Note, the Loan Agreement or of
any other Loan Documents, (d) the execution and delivery by Borrower and Lender of any other loan
or credit agreement or of Borrower’s execution and delivery of any promissory notes or other
documents arising under the Loan Documents or in connection with the Properties, (e) the
occurrence of any breach by Borrower or an Event of Default, (f) Lender’s transfer or disposition
of the Guaranteed Obligations, or any part thereof, (g) sale or foreclosure (or posting or
advertising for sale or foreclosure) of any collateral for the Guaranteed Obligations, (h)
protest, proof of non-payment or default by Borrower and (i) any other action at any time taken or
omitted by Lender, and, generally, all demands and notices of every kind in connection wiui this
Guaranty, the Loan Documents, any documents or agreements evidencing, securing or relating to any
of the Guaranteed Obligations.

     1.8 Payment of Expenses. In the event that Guarantor should breach or fail to timely
perform any provisions of this Guaranty, Guarantor shall, immediately upon demand by Lender, pay
Lender all costs and expenses (including court costs and reasonable attorneys’ fees) incurred by
Lender in the  enforcement hereof or the preservation of Lender’s rights hereunder. The covenant
contained in this Section shall survive the payment and performance of the Guaranteed Obligations.

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

     1.10    Waiver
of    Subrogation,    Reimbursement    and    Contribution.
Notwithstanding anything to the contrary contained in this Guaranty,
Guarantor hereby unconditionally and irrevocably waives, releases and
abrogates, prior to the payment in full of the Loan and for a period of 91 days thereafter any and all
rights it may now or hereafter have under any agreement, at law or in equity
(including, without limitation, any law subrogating the Guarantor to the
rights of Lender), to assert any claim against or seek contribution,
indemnification or any other form of reimbursement from Borrower for any
payment made by Guarantor under or in connection with this Guaranty or otherwise.

     1.11 Borrower. The term “Borrower” as used herein shall include any new or
successor corporation, association, partnership (general or limited), joint venture, trust or
other individual or organization formed as a result of any merger, reorganization, sale, transfer,
devise, gift or bequest of Borrower or any interest in Borrower.

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ARTICLE
II

EVENTS AND CIRCUMSTANCES NOT REDUCING

OR DISCHARGING GUARANTOR’S OBLIGATIONS

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

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

     2.2
Adjustment. Any adjustment, indulgence, forbearance or compromise that might be
granted or given by Lender to Borrower or any Guarantor (except to the extent of such adjustment,
indulgence, forbearance or compromise to Guarantor).

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

     2.4 Invalidity of Guaranteed Obligations. The invalidity, illegality or
unenforceability of all or any part of the Guaranteed Obligations, or any document or agreement
executed in connection with the Guaranteed Obligations, for any reason whatsoever, including
without limitation the fact that (a) the Guaranteed Obligations, or any part thereof, exceeds the
amount permitted by law, (b) the act of creating the Guaranteed Obligations or any part thereof is
ultra vires, (c) the officers or representatives executing the Note, the Loan Agreement or
the other Loan Documents or otherwise creating the Guaranteed Obligations acted in excess of their
authority, (d) the Guaranteed Obligations violate applicable usury laws, (e) the Borrower has valid
defenses (except Borrower’s or Guarantor’s performance of such obligations and then only to the
extent of such performance), claims or offsets (whether at law, in equity or by agreement) which
render the Guaranteed Obligations wholly or partially uncollectible from Borrower, (f) the
creation, performance or repayment of the Guaranteed Obligations (or the execution, delivery and
performance of any document or instrument representing part of the Guaranteed Obligations or
executed in connection with the Guaranteed Obligations, or given to secure the repayment of the
Guaranteed Obligations) is illegal, uncollectible or unenforceable, or (g) the Note, the Loan
Agreement or any of the other Loan Documents have been forged or otherwise are irregular or not
genuine or authentic, it being agreed that Guarantor shall remain liable hereon regardless of

-6-

 

whether Borrower or any other Person be found not liable on the Guaranteed Obligations or any part
thereof for such reason.

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

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

     2.7 Release of Collateral. Any release, surrender, exchange, subordination,
deterioration, waste, loss or impairment (including without limitation negligent, willful,
unreasonable or unjustifiable impairment) of any collateral, property or security at any time
existing in connection with, or assuring or securing payment of, all or any part of the Guaranteed
Obligations.

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

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

     2.10 Offset. Any existing or future right of offset, claim or defense of Borrower
against Lender, or any other Person, or against payment of the Guaranteed Obligations (except
Borrower’s or Guarantor’s performance of such obligations and then only to the extent of such
performance), whether such right of offset, claim or defense arises in connection with the
Guaranteed Obligations (or the transactions creating the Guaranteed Obligations) or otherwise.

-7-

 

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

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

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

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES

     To induce Lender to enter into the Loan Documents and extend credit to Borrower, Guarantor
represents and warrants to Lender as follows as of the date hereof:

     3.1 Benefit. Guarantor is the owner of an indirect interest in Borrower, and has
received, or will receive, direct or indirect benefit from the making of this Guaranty with
respect to the Guaranteed Obligations.

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

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

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

-8-

 

     3.5 Guarantor’s Financial Condition. As of the date hereof, and after giving effect
to this Guaranty and the contingent obligation evidenced hereby, Guarantor is, and will be,
solvent, and has and will have assets which, fairly valued, exceed its obligations, liabilities
(including contingent liabilities) and debts, including without limitation, the Guaranteed
Obligations, and has and will have property and assets sufficient to satisfy and repay its
obligations and liabilities, including without limitation, the Guaranteed Obligations.

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

ARTICLE IV

SUBORDINATION OF CERTAIN INDEBTEDNESS

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

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

     4.3 Payments Held in Trust. In the event that, notwithstanding anything to the
contrary in this Guaranty, Guarantor should receive any funds, payment, claim or distribution
which is prohibited by this Guaranty, Guarantor agrees to hold in trust for Lender an amount equal
to the amount of all funds, payments, claims or distributions so received, and agrees that it

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shall have absolutely no dominion over the amount of such funds, payments, claims or distributions
so received except to pay them promptly to Lender, and Guarantor covenants promptly to pay the
same to Lender.

     4.4
Liens Subordinate. Guarantor agrees that  any liens, security interests, judgment
liens, charges or other encumbrances upon Borrower’s assets securing payment of the Guarantor
Claims shall be and remain inferior and subordinate to any liens, security interests, judgment
liens, charges or other encumbrances upon Borrower’s assets securing payment of the Guaranteed
Obligations, regardless of whether such encumbrances in favor of Guarantor or Lender presently
exist or are hereafter created or attach. Without the prior written consent of Lender, Guarantor
shall not, prior to the payment in full of the Loan (a) exercise or enforce any creditor’s right it
may have against Borrower, or (b) foreclose, repossess, sequester or otherwise take steps or
institute any action or proceedings (judicial or otherwise, including without limitation the
commencement of, or joinder in, any liquidation, bankruptcy, rearrangement, debtor’s relief or
insolvency proceeding) to enforce any liens, mortgages, deeds of trust, security interests,
collateral rights, judgments or other encumbrances on assets of Borrower held by Guarantor.

ARTICLE V

MISCELLANEOUS

     5.1 Waiver. No failure to exercise, and no delay in exercising, on the part of
Lender, any right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise of any other
right. The rights of Lender hereunder shall be in addition to all other rights provided by law. No
modification or waiver of any provision of this Guaranty, nor consent to departure therefrom,
shall be effective unless in writing and no such consent or waiver shall extend beyond the
particular case and purpose involved. No notice or demand given in any case shall constitute a
waiver of the right to take other action in the same, similar or other instances without such
notice or demand.

     5.2 Notices. Any notice, demand, statement, request or consent made hereunder shall
be in writing and shall be deemed to be received by the addressee on the third day following the
day such notice is deposited with the United States Postal Service first class certified mail,
return receipt requested, addressed to the address, as set forth below, of the party to whom such
notice is to be given, or to such other address as either party shall in like manner designate in
writing. The addresses of the parties hereto are as follows:

	 	 	 	 
	 	Guarantor.	 	 
	 	 	 	CapitalSource, Inc.
	 	 	 	c/o CapitalSource Finance LLC
	 	 	 	4445 Willard Avenue, 12th Floor
	 	 	 	Chevy Chase, MD 20815 
	 	 	 	Attn: Treasurer and General Counsel — Corporate
	 	 	 	Fax: 301.841.2380 

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	 	with a copy to:
	 	Hogan & Hartson LLP
	 	 	 	Columbia Square
	 	 	 	555 13th Street, NW
	 	 	 	Washington, DC 20004 
	 	 	 	Attention: James E. Showen
	 	 	 	Telecopier: (202) 637-5910 
	 	 	 	 
	 	Lender:	 	 
	 	 	 	Column Financial, Inc.
	 	 	 	11 Madison Avenue
	 	 	 	New York, New York 10010 
	 	 	 	Attention: Richard Lerner
	 	 	 	Facsimile No.: (212) 743-5540 
	 	 	 	 
	 	with a copy to:
	 	Column Financial, Inc.
	 	 	 	One Madison Avenue
	 	 	 	New York, New York 10019 
	 	 	 	Legal and Compliance Department
	 	 	 	Attention: Casey McCutcheon
	 	 	 	Facsimile No.: (212) 325-8282 
	 	 	 	 
	 	with a copy to:
	 	Troutman Sanders LLP
	 	 	 	405 Lexington Avenue
	 	 	 	New York, New York 10174 
	 	 	 	Attention: Simon Cices, Esq.
	 	 	 	Facsimile No.: (212) 704-8343 

     5.3 Governing Law. This Guaranty shall be construed and enforced in accordance with
the laws of the State of New York, without regard to the conflicts of laws principles thereof
(other than Section 5-1401 of the New York General Obligations Law).

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

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

     5.6
Parties Bound; Assignment: Joint and Several.  This Guaranty shall be binding upon
and inure to the benefit of the parties hereto and their respective successors, assigns and legal
representatives; provided, however, that Guarantor may not, without the prior written

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consent of Lender, assign any of its rights, powers, duties or obligations hereunder. If more than
one Person has executed this Guaranty as “Guarantor”, the representations, covenants, warranties,
obligations and liabilities of all such Persons hereunder shall be joint and several.

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

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

     5.9 Counterparts. To facilitate execution, this Guaranty may be executed in as many
counterparts as may be convenient or required. It shall not be necessary that the signature of, or
on behalf of, each party, or that the signature of all Persons required to bind any party, appear
on each counterpart. All counterparts shall collectively constitute a
single instrument. It shall
not be necessary in making proof of this Guaranty to produce or account for more than a single
counterpart containing the respective signatures of, or on behalf of, each of the parties hereto.
Any signature page to any counterpart may be detached from such counterpart without impairing the
legal effect of the signatures thereon and thereafter attached to another counterpart identical
thereto except having attached to it additional signature pages.

     5.10 Rights and Remedies. If Guarantor becomes liable for any indebtedness owing by
Borrower to Lender, by endorsement or otherwise, other than under this Guaranty, such liability
shall not be in any manner impaired or affected hereby and the rights of Lender hereunder shall be
cumulative of any and all other rights that Lender may ever have against Guarantor. The exercise by
Lender of any right or remedy hereunder or under any other instrument, or at law or in equity,
shall not preclude the concurrent or subsequent exercise of any other right or remedy.

     5.11 Other Defined Terms. Any capitalized term utilized herein shall have the meaning
as specified in the Loan Agreement, unless such term is otherwise specifically defined herein.

     5.12
Entirety. THIS GUARANTY EMBODIES THE FINAL AND ENTIRE AGREEMENT OF GUARANTOR AND
LENDER WITH RESPECT TO GUARANTOR’S GUARANTY OF THE GUARANTEED OBLIGATIONS AND SUPERSEDES ANY AND
ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL,
RELATING TO THE SUBJECT MATTER HEREOF. THIS GUARANTY IS INTENDED BY GUARANTOR AND LENDER AS A
FINAL AND COMPLETE EXPRESSION OF THE TERMS OF THE GUARANTY, AND NO COURSE OF DEALING BETWEEN
GUARANTOR AND LENDER, NO COURSE OF PERFORMANCE, NO TRADE PRACTICES, AND NO EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER
EXTRINSIC EVIDENCE OF ANY
NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS GUARANTY
AGREEMENT. THERE ARE NO ORAL AGREEMENTS BETWEEN GUARANTOR AND
LENDER.

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     5.13 Waiver of Right To Trial By Jury. GUARANTOR HEREBY AGREES NOT TO ELECT A TRIAL BY
JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE
EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS GUARANTY, THE NOTE, THE
LOAN AGREEMENT, THE MORTGAGE, OR THE OTHER LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER
ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY
AND VOLUNTARILY BY GUARANTOR, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH
ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED
TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY
GUARANTOR.

     5.14 Reinstatement in Certain Circumstances. If at any time any payment of the
principal of or interest under the Note or any other amount payable by the Borrower under the Loan
Documents is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy or
reorganization of the Borrower or otherwise, the Guarantor’s obligations hereunder with respect to
such payment shall be reinstated as though such payment has been due but not made at such time.

     5.15
State Specific Provisions. (a) With respect to the foregoing provisions
contained in this Agreement, the following shall apply with respect to the State of Arizona:

         (i) Guarantor waives, to the fullest extent allowed by applicable law, all of
Guarantor’s rights under §§
12-1641, 12-1642, 12-1643, 12-1644, 33-814, 44-141, 44-142 and 47-3605 of
Arizona Revised Statutes, and Rule 17(f) of the Arizona Rules of Civil Procedure, as now in
effect or as modified or amended in the future. Guarantor’s obligations under this Guaranty may
be enforced by Lender in an action regardless of whether a trustee’s sale is held.

(b) With respect to the foregoing provisions contained in this Agreement, the following shall
apply with respect to the State of Texas:

         (i) Guarantor waives the benefit of any right of discharge under Chapter 34 of the
Texas Business and Commerce Code and all other rights of sureties and guarantors under such
Chapter; and

         (ii) Guarantor waives all rights or defenses arising under Rule 31 of the Texas Rules
of Civil Procedure, Section 17.001 of the Texas Civil Practice and Remedies Code, Chapter 34 of
the Texas Business and Commerce Code, or any other statute or law, common law, in equity, under
contract or otherwise, or under any amendments, recodifications, supplements or any successor
statute or law of or to any such statute or law; and all rights under
Sections 51.003, 51.004 and
51.005 of the Texas Property Code and under any amendments, recodifications, supplements or any
successor statute or law of or to any such statute or law.

(e) With respect to the foregoing provisions contained in this Agreement, the following shall
apply with respect to the State of Washington:

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NOTICE: ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM
ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

(d) With respect to the foregoing provisions contained in this Agreement, the following shall apply
with respect to the State of Indiana:

          (i) The phrases “attorneys fees,” “legal fees” and counsel fees” when used herein shall
include any and all attorneys’, paralegals’ and law clerks’ fees and disbursements, including,
but not limited to, fees and disbursements at the pre-trial, trial and appellate levels
incurred or paid by Lender in enforcing its rights hereunder.

          (ii) The Guaranteed Obligations payable hereunder by Guarantor to Lender shall be made
without relief from, and Guarantor hereby waives all right of, applicable valuation and
appraisement laws.

          (iii) Guarantor expressly waives and relinquishes any and all rights and remedies which
Guarantor may have or be able to assert by reason of applicable laws including, without limitation,
the provisions of Ind. Code § 26-l-3.1-605(i) and Ind. Code
§ 34-22-2-1-1 et seq., pertaining to
the rights and remedies of sureties or as a result of any and all events which would otherwise
constitute a discharge of this Guaranty or which would be considered as defenses based upon
suretyship or impairment of collateral.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-14-

 

EXECUTED
 as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	GUARANTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	CAPITALSOURCE INC.

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Thomas A. Fink	 	 
	 

	 	Name:

Title:
	 	 

Thomas A. Fink

Chief Financial Officer &

Senior Vice President Finance

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}]]