Document:

exv10w31w1

 

Exhibit 10.31.1

LOAN AGREEMENT

Dated as of December 7, 2006

by and among

ASHFORD PHILLY LP,

ASHFORD ANCHORAGE LP,

ASHFORD MINNEAPOLIS AIRPORT LP,

ASHFORD MV SAN DIEGO LP,

ASHFORD WALNUT CREEK LP,

ASHFORD TRUMBULL LP, and

ASHFORD IOWA CITY LP

(collectively, as Borrowers)

and

COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC.

(as Lender)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1 CERTAIN DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1. Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 GENERAL TERMS
	 	 	27	 
	 
	 	 	 	 
	Section 2.1. The Loan
	 	 	27	 
	Section 2.2. Use of Proceeds
	 	 	29	 
	Section 2.3. Security for the Loan
	 	 	29	 
	Section 2.4. Borrowers’ Note
	 	 	29	 
	Section 2.5. Principal, Interest and Other Payments
	 	 	30	 
	Section 2.6. Prepayment
	 	 	30	 
	Section 2.7. Application of Payments
	 	 	31	 
	Section 2.8. Payment of Debt Service, Method and Place of Payment
	 	 	31	 
	Section 2.9. Taxes; Funding Losses; Changes in Law
	 	 	31	 
	Section 2.10. Extension Options
	 	 	32	 
	Section 2.11. Central Cash Management and Reserves
	 	 	33	 
	Section 2.12. Security Agreement
	 	 	36	 
	Section 2.13. Secondary Market Transactions
	 	 	37	 
	Section 2.14. Interest Rate Cap Agreement
	 	 	40	 
	Section 2.15. Partial Release
	 	 	41	 
	Section 2.16. Substitution
	 	 	43	 
	Section 2.17. Permitted Mezzanine Indebtedness
	 	 	46	 
	Section 2.18. Assumption
	 	 	47	 
	 
	 	 	 	 
	ARTICLE 3 CONDITIONS PRECEDENT
	 	 	48	 
	 
	 	 	 	 
	Section 3.1. Conditions Precedent to the Making of the Loan
	 	 	48	 
	Section 3.2. Form of Loan Documents and Related Matters
	 	 	52	 
	 
	 	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES
	 	 	53	 
	 
	 	 	 	 
	Section 4.1. Representations and Warranties of Borrower and Operating Lessee
	 	 	53	 
	Section 4.2. Survival of Representations and Warranties
	 	 	62	 
	 
	 	 	 	 
	ARTICLE 5 AFFIRMATIVE COVENANTS
	 	 	62	 
	 
	 	 	 	 
	Section 5.1. Borrower Covenants
	 	 	62	 
	 
	 	 	 	 
	ARTICLE 6 NEGATIVE COVENANTS
	 	 	76	 
	 
	 	 	 	 
	Section 6.1. Borrower Negative Covenants
	 	 	76	 
	 
	 	 	 	 
	ARTICLE 7 DEFAULTS
	 	 	78	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	Section 7.1. Event of Default
	 	 	78	 
	Section 7.2. Remedies
	 	 	81	 
	Section 7.3. Remedies Cumulative
	 	 	81	 
	Section 7.4. Lender’s Right to Perform
	 	 	82	 
	 
	 	 	 	 
	ARTICLE 8 MISCELLANEOUS
	 	 	82	 
	 
	 	 	 	 
	Section 8.1. Survival
	 	 	82	 
	Section 8.2. Lender’s Discretion
	 	 	82	 
	Section 8.3. Governing Law
	 	 	83	 
	Section 8.4. Modification, Waiver in Writing
	 	 	83	 
	Section 8.5. Delay Not a Waiver
	 	 	84	 
	Section 8.6. Notices
	 	 	84	 
	Section 8.7. Trial By Jury
	 	 	85	 
	Section 8.8. Headings
	 	 	85	 
	Section 8.9. Assignment
	 	 	85	 
	Section 8.10. Severability
	 	 	85	 
	Section 8.11. Preferences
	 	 	86	 
	Section 8.12. Waiver of Notice
	 	 	86	 
	Section 8.13. Remedies of Borrower
	 	 	86	 
	Section 8.14. Exculpation
	 	 	86	 
	Section 8.15. Exhibits Incorporated
	 	 	88	 
	Section 8.16. Offsets, Counterclaims and Defenses
	 	 	88	 
	Section 8.17. No Joint Venture or Partnership
	 	 	90	 
	Section 8.18. Waiver of Marshalling of Assets Defense
	 	 	90	 
	Section 8.19. Waiver of Counterclaim
	 	 	90	 
	Section 8.20. Conflict; Construction of Documents
	 	 	90	 
	Section 8.21. Brokers and Financial Advisors
	 	 	90	 
	Section 8.22. Counterparts
	 	 	90	 
	Section 8.23. Estoppel Certificates
	 	 	90	 
	Section 8.24. Payment of Expenses
	 	 	91	 
	Section 8.25. Bankruptcy Waiver
	 	 	91	 
	Section 8.26. Entire Agreement
	 	 	92	 
	Section 8.27. Dissemination of Information
	 	 	92	 
	Section 8.28. Limitation of Interest
	 	 	92	 
	Section 8.29. Indemnification
	 	 	93	 
	Section 8.30. Borrower Acknowledgments
	 	 	93	 
	Section 8.31. Publicity
	 	 	93	 
	Section 8.32. Cross Collateralization
	 	 	93	 
	Section 8.33. Contribution
	 	 	94	 
	Section 8.34. Additional Financial Information
	 	 	97	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	Section 8.35. Change of Payment Date, Maturity Date, Interest Accrual Period and
Interest Rate Adjustment Date
	 	 	97	 
	Section 8.36. Time of Essence
	 	 	98	 
	Section 8.37. Final Agreement
	 	 	98	 
	 
	 	 	 	 
	Exhibit A Intentionally Omitted
	 	 	 	 
	 
	 	 	 	 
	Exhibit B Capital Improvements/Environmental Remediation
	 	 	 	 
	 
	 	 	 	 
	Exhibit C Interest Rate Cap Agreement Requirements
	 	 	 	 
	 
	 	 	 	 
	Exhibit D Individual Properties and Allocated Loan Amounts
	 	 	 	 
	 
	 	 	 	 
	Exhibit E Rate Cap Pledge and Security Agreement
	 	 	 	 
	 
	 	 	 	 
	Exhibit F Managers
	 	 	 	 
	 
	 	 	 	 
	Exhibit G Franchisors
	 	 	 	 
	 
	 	 	 	 
	Exhibit H Intentionally omitted.
	 	 	 	 
	 
	 	 	 	 
	Exhibit I Description of Property Improvement Requirements & Pre-approved
Capital Expenditure Budget
	 	 	 	 
	 
	 	 	 	 
	Exhibit J Intentionally omitted.
	 	 	 	 
	 
	 	 	 	 
	Exhibit K FF&E Financing
	 	 	 	 
	 
	 	 	 	 
	Exhibit L Organizational Chart
	 	 	 	 
	 
	 	 	 	 
	Exhibit M Waiver and Acknowledgment
	 	 	 	 

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LOAN AGREEMENT

          THIS LOAN AGREEMENT, made as of December 7, 2006, is by and among COUNTRYWIDE COMMERCIAL REAL
ESTATE FINANCE, INC., a California corporation (in such capacity, and together with its successors
and assigns “Note Holder” and “Lender”), and ASHFORD PHILLY LP, ASHFORD ANCHORAGE
LP, ASHFORD MINNEAPOLIS AIRPORT LP, ASHFORD MV SAN DIEGO LP, ASHFORD WALNUT CREEK LP, ASHFORD
TRUMBULL LP, AND ASHFORD IOWA CITY LP, each a Delaware limited partnership (each, a
“Borrower”, and collectively with each Borrower’s successors and assigns,
“Borrowers”).

RECITALS

          WHEREAS, Borrowers desire to obtain a loan (the “Loan”) from Lender in the aggregate
principal amount of up to $247,000,000 (the “Loan Amount”, of which $212,000,000 was
advanced to Borrower on the date hereof (the “Initial Loan Amount”)) which Loan is
evidenced by a Promissory Note, dated as of the date hereof (as may be modified, amended,
supplemented, extended or consolidated in writing, and any note(s) issued in exchange therefor or
in replacement thereof, the “Note”), made by the Borrowers, each as maker, in favor of Note
Holder, as payee in the original principal amount of up to $247,000,000; and

          WHEREAS, Lender is willing to make the Loan on the condition that Borrowers join in the
execution and delivery of this Agreement which shall establish the terms and conditions of the
Loan.

          NOW, THEREFORE, in consideration of the making of the Loan by Lender, and the covenants,
agreements, representations and warranties set forth in this Agreement, the parties hereby
covenant, agree, represent and warrant as follows:

ARTICLE 1

CERTAIN DEFINITIONS

     Section 1.1. Definitions.

          For all purposes of this Agreement:

          (a) the capitalized terms defined in this Article 1 have the meanings assigned to them
in this Article 1, and include the plural as well as the singular;

          (b) all accounting terms have the meanings assigned to them in accordance with GAAP;

          (c) the words “herein”, “hereof”, and “hereunder” and other words of similar import refer to
this Agreement as a whole and not to any particular Article, Section, or other subdivision; and

1

 

          (d) the following terms have the following meanings:

          “Acceptable Counterparty” means any counterparty to an Interest Rate Cap Agreement
that has and maintains (or whose obligations thereunder are guaranteed in a manner and by a
guarantor that (1) prior to the date that all or any portion of the Loan is included in a REMIC, is
reasonably acceptable to Lender, or (2) after the date that all or any portion of the Loan is
included in a REMIC, would be acceptable to a prudent commercial lender making a loan similar to
the Loan) (a) (i) a long-term unsecured debt rating or counterparty rating of “AA-” or higher from
S&P, and (ii) a short-term unsecured debt rating of not less than “A-1+” by S&P, and (b) a
long-term unsecured debt rating of not less than “Aa3” by Moody’s, or any other counterparty to an
Interest Rate Cap Agreement with respect to which a Rating Agency Confirmation is received.

          “Account Collateral” means the Cash Collateral Account, each Collection Account, each
Reserve Account, and all amounts deposited or held in such accounts, and all Proceeds of any or all
of the foregoing.

          “Additional Advance(s)” has the meaning set forth in Section 2.1(a).

          “Adjusted Net Operating Income” means, with respect to each Individual Property, for
any period, the Net Operating Income for such period (Net Operating Income to be calculated for the
purposes of this definition of “Adjusted Net Operating Income” without deduction for actual
management fees paid pursuant to any Management Agreement for such period or actual franchise fees
paid pursuant to any Franchise Agreement for such period) reduced by (i) annual base management
fees, pro rated for the applicable period, equal to the greater of (y) actual base management fees
paid pursuant to the Management Agreement and (z) five percent (5%) of Gross Revenues, (ii) annual
base franchise fees paid pursuant to the applicable Franchise Agreement, pro rated for the
applicable period, equal to the greater of (y) actual base franchise fees paid pursuant to the
Franchise Agreement and (z) five percent (5%) of Gross Revenues, and (iii) a reserve for furniture,
fixtures and equipment of four percent (4%) of Gross Revenues.

          “Advance Request” has the meaning set forth in Section 2.1(a).

          “Affiliate” of any specified Person means any other Person controlling, controlled by
or under common control with such specified Person. For the purposes of this Agreement, “control”
when used with respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership of voting securities
or other beneficial interests, by contract or otherwise; and the terms “controls”, “controlling”
and “controlled” have the meanings correlative to the foregoing. For the avoidance of doubt, with
respect to any Borrower or Operating Lessee, the definition of “Affiliate” shall not include
Remington Manager.

          “Aggregate Debt Service Coverage Ratio” means, for any period, the quotient obtained
by dividing (a) the underwritten net cash flow of the Individual Properties determined by Lender in
its reasonable discretion in accordance with customary underwriting standards for such period by
(b) the aggregate of all principal and interest payable for such period under (i) the

2

 

Loan
Documents (assuming the Loan had been fully advanced), plus (ii) the Mezzanine Loan (assuming the
Mezzanine Loan had been fully advanced at the beginning of such period) (provided, however, such
ratio shall, in all cases, be determined utilizing a debt service constant calculated with the
Interest Rate assuming that the Interest Rate equals the sum of the Strike Rate
and the Note Spread and the interest rate payable with respect to the Mezzanine Loan being the
actual interest rate if such Mezzanine Loan is a fixed rate loan and if such Mezzanine Loan is a
floating rate loan, such interest rate shall be calculated as the sum of the Strike Rate and the
interest rate spread on such Mezzanine Loan).

          “Agreement” means this Loan Agreement, as the same may from time to time hereafter be
modified, supplemented or amended.

          “Allocated Loan Amount” means, with respect to each Individual Property, the amount
set forth on Exhibit D attached hereto, as such amounts shall be adjusted from time to time
as hereinafter set forth. Upon each adjustment in the amount of Indebtedness due to the making of
an Additional Advance, the Allocated Loan Amount for the applicable Individual Property shall be
increased by any Additional Advance for such Individual Property in accordance with the
Pre-approved Capital Expenditure Budget. When the Indebtedness is reduced as the result of
Lender’s receipt of proceeds with respect to a Condemnation or Casualty affecting one hundred
percent (100%) of any Individual Property, the Allocated Loan Amount for such Individual Property
with respect to which the Insurance Proceeds or Condemnation Proceeds were received shall, at
Lender’s sole discretion, be reduced to zero (such Allocated Loan Amount prior to reduction being
referred to as the “Withdrawn Allocated Amount”), and each other Allocated Loan Amount
shall, if the Withdrawn Allocated Amount exceeds such proceeds (such excess being referred to as
the “Proceeds Deficiency”), be increased by an amount equal to the product of (1) the
Proceeds Deficiency and (2) a fraction, the numerator of which is the applicable Allocated Loan
Amount (prior to the adjustment in question) and the denominator of which is the aggregate of all
of the Allocated Loan Amounts (prior to the adjustment in question) other than the Withdrawn
Allocated Amount.

          “Appraisal” means an appraisal of any Individual Property prepared in accordance with
the requirements of FIRREA prepared by an independent third party appraiser holding an MAI
designation, who is state licensed or state certified if required under the laws of the state where
such Individual Property is located, who meets the requirements of FIRREA and who is otherwise
reasonably satisfactory to Lender.

          “Approved Budget” has the meaning provided in Section 5.1(o)(10).

          “Appurtenant Rights” means, collectively, “Appurtenant Rights” as defined in each
Mortgage.

          “Assignment of Agreements” shall mean, with respect to each Individual Property, a
first priority Assignment of Management Agreement and Agreements Affecting Real Estate, in form and
substance satisfactory to Lender, dated as of the Closing Date, from each applicable Borrower, as
assignor, to Lender, as assignee, as the same may thereafter from time to time be supplemented,
amended, modified or extended by one or more written agreements supplemental thereto.

3

 

          “Assignment of Leases” shall mean, with respect to each Individual Property, a first
priority Assignment of Leases and Rents, in form and substance satisfactory to Lender, dated as of
the Closing Date from the applicable Borrower and/or Operating Lessee, as assignor, to Lender, as
assignee, assigning to Lender all of such Borrower’s and/or Operating Lessee’s right, title and
interest in and to the Leases and the Rents, as the same may thereafter from time
to time be supplemented, amended, modified or extended by one or more written agreements
supplemental thereto.

          “Borrower” has the meaning provided in the preamble to this Agreement.

          “Business Day” means any day other than a Saturday, a Sunday or a legal holiday on
which national banks are not open for general business in (i) the State of California, (ii) the
state where the corporate trust office of the any trustee in connection with a Secondary Market
Transaction is located, or (iii) the state where the servicing offices of the any servicer in
connection with a Secondary Market Transactions are located.

          “Cash Collateral Account” has the meaning provided in Section 2.11(b).

          “Cash Collateral Account Agreement” has the meaning provided in Section
2.12(c).

          “Cash Collateral Account Bank” means the bank chosen by Lender to hold the Cash
Collateral Account, or any successor bank hereafter selected by Lender in accordance with the terms
hereof.

          “Cash Trap Period” means (a) any period commencing upon the occurrence of any Event of
Default, and ending upon Lender giving notice to the Collection Account Bank and Borrower that such
Event of Default no longer exists and no other Event of Default then exists, and (b) any period
during which any mezzanine loan permitted under the Loan Documents is outstanding.

          “Casualty” has the meaning, with respect to each Individual Property, provided in the
Mortgage for such Individual Property.

          “Closing Date” means the date of this Agreement.

          “Code” means the Internal Revenue Code of 1986, as amended, and as it may be further
amended from time to time, any successor statutes thereto, together with applicable U.S. Department
of Treasury regulations issued pursuant thereto in temporary or final form.

          “Collateral” means, collectively, the “Collateral” as defined in each Mortgage.

          “Collection Account” has the meaning provided in Section 2.11(a)(i).

          “Collection Account Agreement” has the meaning set forth in Section 2.11(b).

          “Collection Account Bank” shall mean, with respect to each Individual Property, the
collection bank for such Individual Property and any successor bank hereafter selected by

4

 

each
applicable Borrower which owns such Individual Property and approved by Lender in accordance with
each Collection Account Agreement.

          “Completion Guaranty” means that certain Completion Guaranty executed by Ashford
Hospitality Limited Partnership, a Delaware limited partnership, in favor of Lender relating to
work required under the Pre-approved Capital Expenditure Budget.

          “Condemnation Proceeds” has the meaning, with respect to each Individual Property,
provided in the Mortgage for such Individual Property.

          “Contingent Obligation” means any obligation of any Borrower guaranteeing any
indebtedness, leases, dividends or other obligations (“primary obligations”) of any other
Person (the “primary obligor”) in any manner, whether directly or indirectly, including,
without limitation, any obligation of any Borrower, whether or not contingent; (i) to purchase any
such primary obligation, or any property constituting direct or indirect security therefor; (ii) to
advance or supply funds (x) for the purchase or payment of any such primary obligation or (y) to
maintain working capital or equity capital of the primary obligor; (iii) to purchase property,
securities or services primarily for the purpose of assuring the owner or obligee under any such
primary obligation of the ability of the primary obligor to make payment of such primary
obligation; or (iv) otherwise to assure or hold harmless the owner or obligee under such primary
obligation against loss in respect thereof. The amount of any Contingent Obligation shall be
deemed to be an amount equal to the stated or determinable amount of the primary obligation in
respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum
anticipated liability in respect thereof (assuming that the applicable Borrower is required to
perform thereunder) as determined by Lender in good faith.

          “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. “Controlled
by,” “controlling” and “under common control with” shall have the respective correlative meaning
thereto.

          “Countrywide” means Countrywide Commercial Real Estate Finance, Inc.

          “Debt Service” means, for any period, the aggregate of all principal, interest
payments, Default Rate interest, Late Charges, prepayment premiums, if any, and other amounts that
accrue or are due and payable in accordance with the Loan Documents during such period.

          “Debt Service Coverage Ratio” means, for any period, the quotient obtained by dividing
(i) the underwritten net cash flow of the Individual Properties that will remain subject to the
Lien of the Loan Documents for the specified period, as reasonably calculated by Lender in
accordance with customary underwriting standards (the “Underwritten Net Cash Flow”),
by (ii) the aggregate of all amounts that accrue or become due and payable to Lender with
respect to principal and interest pursuant to the Loan Documents during such period, as reasonably
calculated by Lender (provided, however, such ratio shall, in all cases, be
determined utilizing a

5

 

debt service constant calculated assuming that the Interest Rate equals the
sum of the Strike Rate and the Note Spread and assuming the Loan has been fully advanced).

          “Debt Yield” means the quotient (expressed as a percentage) obtained by dividing (A)
Adjusted Net Operating Income as to remaining Individual Properties following a Partial Release, by
(B) the Loan Amount after giving effect to any prepayment in connection with a Partial Release.
Adjusted Net Operating Income shall be calculated on a trailing twelve (12) month basis.

          “Deed of Trust Trustee” means, with respect to each Individual Property, the trustee,
if any, under the Mortgage for such Individual Property.

          “Default” means the occurrence of any event which, but for the giving of notice or the
passage of time, or both, would be an Event of Default.

          “Default Collateral” has the meaning provided in Section 8.14.

          “Default Rate” means the per annum interest rate equal to the lesser of (i) the
Maximum Amount or (ii) five percent (5%) plus the LIBOR Interest Rate for the Note.

          “Deferred Maintenance and Environmental Reserve Account” means the account established
pursuant to Section 2.11(d).

          “Eligible Account” means (i) an account maintained with a federal or state chartered
depository institution or trust company whose (x) commercial paper, short-term debt obligations or
other short-term deposits are rated at least A-1 by S&P and the equivalent by each other Rating
Agency if the deposits in such account are to be held in such account for thirty (30) days or less
or (y) long-term unsecured debt obligations are rated at least A by S&P and the equivalent by each
other Rating Agency if the deposits in such account are to be held in such account for more than
thirty (30) days; or (ii) a segregated trust account maintained with the trust department of a
federal or state chartered depository institution or trust company acting in its fiduciary capacity
which institution or trust company is subject to regulations regarding fiduciary funds on deposit
substantially similar to 12 C.F.R. § 9.10(b); or (iii) an account otherwise acceptable to each
Rating Agency, as confirmed in writing that such account would not, in and of itself, result in a
downgrade, qualification or withdrawal of the then current ratings assigned to any security issued
in connection with a Secondary Market Transaction.

          “Embargoed Person” has the meaning provided in Section 4.1(ll).

          “Embassy Suites Walnut Creek” means that certain hotel known as the Embassy Suites
Walnut Creek located in Walnut Creek, California and owned by Ashford Walnut Creek LP, a Delaware
limited partnership.

          “Engineer” means any reputable Independent engineer, properly licensed in the relevant
jurisdiction and approved by Lender in Lender’s reasonable discretion.

          “Engineering Report(s)” means, with respect to each Individual Property, the
structural engineering report(s) with respect to such Individual Property (i) prepared by an

6

 

Engineer, (ii) addressed to or permitted by such preparer to be relied upon by Lender, (iii)
prepared based on a scope of work determined by Lender in Lender’s discretion, and (iv) in form and
content acceptable to Lender in Lender’s discretion, together with any amendments or supplements
thereto.

          “Entity” means a (a) corporation, if the applicable Borrower is listed as a
corporation in the preamble to this Agreement, (b) limited partnership, if the applicable Borrower
is listed as a limited partnership in the preamble to this Agreement or (c) limited liability
company, if the applicable Borrower is listed as a limited liability company in the preamble to
this Agreement.

          “Environmental Guaranty” means the Environmental Indemnity Agreement in form and
substance satisfactory to Lender dated as of the Closing Date from Borrower and Ashford Hospitality
Limited Partnership, a Delaware limited partnership, to Lender relating to all Individual
Properties, as the same may thereafter be from time to time supplemented, amended, modified or
extended by one or more agreements supplemental thereto.

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

          “Environmental Law” means any present and future federal, state and local laws,
statutes, ordinances, rules, regulations and the like, as well as common law, relating to
protection of human health or the environment, relating to Hazardous Substances, relating to
liability for or costs of other actual or threatened danger to human health or the environment,
including, without limitation, the following statutes, as amended, any successor thereto, and any
regulations promulgated pursuant thereto, and any state or local statutes, ordinances, rules,
regulations and the like addressing similar issues: the Comprehensive Environmental Response,
Compensation and Liability Act; the Emergency Planning and Community Right-to-Know Act; the
Hazardous Substances Transportation Act; the Resource Conservation and Recovery Act (including but
not limited to Subtitle I relating to underground storage tanks); the Solid Waste Disposal Act; the
Clean Water Act; the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking Water Act;
the Occupational Safety and Health Act; the Federal Water Pollution Control Act; the Federal
Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National Environmental
Policy Act; and the River and Harbors Appropriation Act, and including, without limitation, any
present and future federal, state and local laws, statutes ordinances, rules, regulations and the
like, as well as common law: requiring notification or disclosure of Releases of Hazardous
Substances or other environmental condition of any or all of the Individual

7

 

Properties to any
Governmental Authority or other Person, whether or not in connection with transfer of title to or
interest in any or all of the Individual Properties.

          “Environmental Liens” means, with respect to each Individual Property, all liens and
other encumbrances imposed on any Borrower which owns such Individual Property pursuant to any
Environmental Law, whether due to any act or omission of any Borrower or any other person.

          “Environmental Report(s)” means, with respect to each Individual Property,
environmental audit report(s) (i) prepared by a reputable environmental Engineer approved by Lender
in Lender’s discretion, (ii) addressed to or permitted by such environmental Engineer to be relied
upon by Lender (iii) prepared based on a scope of work determined by Lender in
Lender’s discretion, and (iv) in form and content acceptable to Lender in Lender’s discretion,
together with any amendments or supplements thereto delivered to Lender.

          “Equity Interests” means (i) if the applicable Borrower is a limited partnership,
limited partnership interests in Borrower, or (ii) if the applicable Borrower is a limited
liability company, membership interests in Borrower; or (iii) if the applicable Borrower is a
corporation, the share or stock interests in the applicable Borrower; provided, however, Equity
Interests shall not include any direct or indirect legal or beneficial ownership interest, or any
other interest of any nature or kind whatsoever, of any SPE Equity Owner in any Borrower or in any
other SPE Equity Owner, as applicable.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the regulations promulgated thereunder. Section references to ERISA are to
ERISA, as in effect at the date of this Agreement and, as of the relevant date, any subsequent
provisions of ERISA, amendatory thereof, supplemental thereto or substituted therefor.

          “ERISA Affiliate” means any corporation or trade or business that is a member of any
group of organizations (i) described in Section 414(b) or (c) of the Code, of which any Borrower is
a member, and (ii) solely for purposes of potential liability under Section 302(c)(11) of ERISA and
Section 412(b) of the Code and the lien created under Section 302(k) of any ERISA and Section
430(k) of the Code, described in Section 414(m) or (o) of the Code, of which any Borrower is a
member.

          “Event of Default” has the meaning set forth in Section 7.1.

          “Exchange Act” has the meaning set forth in Section 2.13(c).

          “Extension Interest Rate Cap Agreement” means, a confirmation (together with the
definitions, ISDA master agreement and schedules relating thereto) between the applicable
Acceptable Counterparty and each Borrower, relating to the applicable Extension Term, satisfying
the requirements set forth in Exhibit C.

          “Extension Term” has the meaning set forth in Section 2.10.

8

 

          “FF&E Financing” shall mean, with respect to an Individual Property, the personal
property leases and personal property financing set forth with respect to such Individual Property
on Exhibit K, attached hereto and incorporated herein and all renewals, amendments and
extensions thereof.

          “FF&E Reserve Account” means the account established pursuant to Section
2.11(d).

          “FIRREA” shall mean the Financial Institutions Reform, Recovery and Enforcement Act of
1989, as the same may be amended from time to time.

          “First Extended Maturity Date” has the meaning set forth in Section 2.10.

          “First Extension Term” has the meaning set forth in Section 2.10.

          “Fiscal Year” means the 12-month period ending on December 31 of each year or such
other fiscal year of Borrowers as Borrowers may select from time to time with the prior written
consent of Lender, such consent not to be unreasonably withheld or delayed.

          “Franchise Agreement” shall mean, individually or collectively, as the context may
require, each franchise or similar agreement entered into by and between the applicable Borrower
and/or Operating Lessee and Franchisor pursuant to which the applicable Borrower and/or Operating
Lessee is permitted to operate the applicable Individual Property under the “flag” or other trade
name that is the subject thereof, as the same may be amended, restated, replaced, supplemented or
otherwise modified in accordance with the terms hereof.

          “Franchisor” shall mean, individually or collectively, as the context may require,
each franchisor under a Franchise Agreement. As of the date hereof, each Franchisor of each
Individual Property is set forth on Exhibit G attached hereto. No replacement or
substitute Franchisor shall be selected, approved or consented to by any Borrower or Operating
Lessee other than in accordance with the terms hereof.

          “Franchisor’s Subordination” means, with respect to each Individual Property, a
Franchisor’s Consent and Subordination Agreement, comfort letter or similar agreement in form and
substance satisfactory to Lender, dated as of the Closing Date, executed by the relevant Franchisor
and others as the same may thereafter from time to time be supplemented, amended, modified or
extended by one or more written agreements supplemental thereto.

          “Full Recourse Event” has the meaning provided in Section 8.14.

          “Funded Participation Holders” has the meaning provided in Section 8.16.

          “Funded Participation Interests” has the meaning provided in Section 8.16.

          “Funding Losses” means, collectively, all losses, costs and expenses incurred or
sustained (or expected to be incurred or sustained) by Lender in liquidating or re-employing funds
from third parties to effect or maintain the Loan or any part thereof as a consequence of (a) if
the Loan, or any portion thereof, is repaid for any reason whatsoever on any date other than a

9

 

Payment Date (including, without limitation, from Insurance Proceeds or Condemnation Proceeds); (b)
any default in the payment or prepayment of the Principal Indebtedness or any part thereof or
interest accrued thereon, as and when due and payable (at the date thereof or otherwise, and
whether by acceleration or otherwise); (c) intentionally omitted; (d) any losses, expenses or
increased costs incurred or sustained by Lender due to the determination of the “LIBOR Rate” other
than pursuant to the first sentence of the definition thereof; (e) the reduction of any amounts
received or receivable from any Borrower, in either case, due to the introduction of, or any change
in, law or applicable regulation or treaty (including the administration or interpretation
thereof), whether or not having the force of law, or due to the compliance by Lender with any
directive, whether or not having the force of law, or request from any central bank or domestic or
foreign governmental authority, agency or instrumentality have jurisdiction; and/or (f) any other
set of circumstances not attributable to Lender’s acts.

          “GAAP” means generally accepted accounting principles consistently applied in the
United States of America as of the date of the applicable financial report.

          “Governmental Authority” means any foreign, national, federal, state, regional or
local government, or any other political subdivision of any of the foregoing, in each case with
jurisdiction over any Borrower, all or any portion of the Collateral, or any SPE Equity Owner, or
any Person with jurisdiction over any Borrower, any Individual Property or any SPE Equity Owner,
exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

          “Gross Revenue” means, with respect to each Individual Property, the total dollar
amount of all income and receipts whatsoever received by the Borrower, Operating Lessee or any
Manager or any agent thereof which owns, operates or manages the applicable Individual Property.

          “Guarantor” means Ashford Hospitality Limited Partnership, a Delaware limited
partnership.

          “Guaranty of Recourse Obligations” means that certain Guaranty of Recourse Obligations
made by Guarantor in favor of Lender dated as of the date hereof.

          “Hazardous Substance” means, without limitation, any and all substances (whether
solid, liquid or gas) defined, listed, or otherwise classified as pollutants, toxic or hazardous
wastes, toxic or hazardous substances, toxic or hazardous materials, extremely hazardous wastes, or
words of similar meaning or regulatory effect under any present or future Environmental Laws
including but not limited to petroleum and petroleum products, asbestos and asbestos-containing
materials, polychlorinated biphenyls, lead, radon, radioactive materials, flammables and
explosives, but excluding substances of kinds and in small amounts ordinarily and customarily used
or stored in similar properties for the purposes of cleaning or other maintenance or operations and
otherwise in compliance with all Environmental Laws.

          “Impositions” means, collectively, “Impositions” as defined in each Mortgage.

          “Indebtedness” means, at any given time, the Principal Indebtedness, together with all
accrued and unpaid interest thereon and all other obligations and liabilities due or to

10

 

become due
to Lender pursuant hereto, under the Note or in accordance with any of the other Loan Documents,
and all other amounts, sums and expenses paid by or payable to Lender hereunder or pursuant to the
Note or any of the other Loan Documents.

          “Indemnified Party” shall have the meaning set forth in Section 2.13(c).

          “Independent” means, when used with respect to any Person, a Person who: (i) does not
have any direct financial interest or any material indirect financial interest in any Borrower or
in any Affiliate of any Borrower (including, without limitation, in any SPE Equity Owner), (ii) is
not connected with any Borrower or any Affiliate of any Borrower (including, without limitation,
any SPE Equity Owner), as an officer, employee, promoter, underwriter, trustee, partner, member,
manager, creditor, director or person performing similar functions (other than in his or her
capacity as Independent Director), and (iii) is not a member of the immediate family of a Person
defined in (i) or (ii) above.

          “Independent Director” means, with respect to each Borrower, a duly appointed member
of the board of directors (or with respect to a Single Member LLC, the board of
managers) of the relevant entity who shall not have been, at the time of such appointment or
at any time while serving as a director or manager of the relevant entity and may not have been at
any time in the preceding five years (except in a capacity as an “Independent Director” for one or
more Affiliates otherwise satisfying the requirements of this definition), (a) a direct or indirect
legal or beneficial owner in such entity or any of its affiliates or any Borrower or any of their
respective affiliates, (b) a creditor, supplier, employee, officer, director (other than in its
capacity as Independent Director), family member, manager, or contractor of such entity or any of
its affiliates or any Borrower or any of their respective affiliates, or (c) a Person who controls
(directly, indirectly, or otherwise) such entity or any of its affiliates or any Borrower or any of
their respective affiliates or any creditor, supplier, employee, officer, director, family member,
manager, or contractor of such Person or any of its affiliates or any Borrower or any of their
respective affiliates.

          “Individual Properties” shall mean, collectively, each and every Individual Property.

          “Individual Property” shall mean, with respect to each individual property described
on Exhibit D attached hereto, “Property” or “Individual Property”, as applicable, as
defined in the related Mortgage for such individual property.

          “Initial Interest Rate Cap Agreement” means a confirmation (together with the
definitions, ISDA master agreement and schedules relating thereto) between the applicable
Acceptable Counterparty and each Borrower, relating to the initial term of the Loan, satisfying the
requirements set forth in Exhibit C.

          “Initial Maturity Date” means December 11, 2009.

          “Insurance Proceeds” has the meaning, with respect to each Individual Property,
provided in the Mortgage for such Individual Property.

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          “Insurance Requirements” has the meaning, with respect to each Individual Property,
provided in the Mortgage for such Individual Property.

          “Interest Accrual Period” shall mean, initially, the period commencing on the Closing
Date and continuing to and including December 10, 2006, and thereafter each period running from and
including a Payment Date to and including the calendar day preceding the next Payment Date during
the term of the Loan.

          “Interest Rate” means, for any Interest Accrual Period, the LIBOR Interest Rate or the
Default Rate, as and when applicable pursuant to this Agreement.

          “Interest Rate Adjustment Date” shall mean the second LIBOR Business Day prior to the
fifteenth (15th) day of the month during which the applicable Interest Accrual Period
begins; provided that the Interest Rate Adjustment Date for the first Interest Accrual Period shall
be the Closing Date or such other date selected by Lender.

          “Interest Rate Cap Agreement” means any Initial Interest Rate Cap Agreement or
Extension Interest Rate Cap Agreement.

          “Interstate Manager” means Interstate Management Company, LLC, a Delaware limited
liability company.

          “Investor” has the meaning provided in Section 8.27.

          “Land” means, collectively, “Land” as defined in each Mortgage.

          “Late Charge” means the lesser of (i) five percent (5%) of any unpaid amount and (ii)
the maximum late charge permitted to be charged under the laws of the State of California.

          “Leases” means, collectively, “Leases” as defined in each Mortgage.

          “Legal Requirements” means all statutes, laws, rules, orders, regulations, ordinances,
judgments, orders, decrees and injunctions of Governmental Authorities affecting any Borrower, the
Loan Documents, the Collateral or any part thereof, or the ownership, construction, use, alteration
or operation thereof, or any part thereof, enacted or entered and in force as of the relevant date,
and all Permits and regulations relating thereto, and all covenants, agreements, restrictions and
encumbrances contained in any instruments, either of record or known to any Borrower, at any time
in force affecting the Collateral or any part thereof, including, without limitation, any which (i)
may require repairs, modifications, or alterations in or to the Collateral or any part thereof, or
(ii) in any way limit the use and enjoyment thereof, and further including, without limitation, all
Environmental Laws and the Americans with Disabilities Act, as they may be amended from time to
time, together with all regulations promulgated pursuant thereto or in connection therewith.

          “Lender” has the meaning provided in the preamble to this Agreement.

          “Liabilities” has the meaning set forth in Section 2.13(c).

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          “LIBOR Business Day” means any day on which banks are open for dealing in foreign
currency and exchange in London, England.

          “LIBOR Interest Rate” means, for any Interest Accrual Period, the LIBOR Rate for such
Interest Accrual Period plus the Note Spread.

          “LIBOR Rate” shall mean the London interbank offered rate for thirty (30) day United
States Dollar deposits in an amount of $1,000,000 or more that appears on Telerate Page 3750 (or on
such page as may replace Telerate Page 3750 on that service or such other service or services as
may be nominated by the British Bankers’ Association for the purposes of displaying such rate all
as determined by Lender in its sole but good faith discretion) as of 11:00 a.m., London time, on
the applicable Interest Rate Adjustment Date to the extent available. If such rate does not appear
on Telerate Page 3750 (or on such page as may replace Telerate Page 3750 on that service or such
other service or services as may be nominated by the British Bankers’ Association for the purposes
of displaying such rate all as determined by Lender in its sole but good faith discretion) as of
11:00 a.m., London time, on the applicable Interest Rate Adjustment Date, the LIBOR Rate will be
the arithmetic mean of the offered rates (expressed as a percentage per annum) for deposits in U.S.
Dollars for a one (1) month period that appear on the Reuters Screen LIBO Page as of 11:00 a.m.,
London time, on the applicable Interest Rate Adjustment
Date, if at least two such offered rates so appear. If fewer than two such offered rates
appear on the Reuters Screen LIBO Page as of 11:00 a.m., London time, on the applicable Interest
Rate Adjustment Date, Lender will request the principal London office of any four (4) major
reference banks in the London interbank market selected by Lender in its sole discretion to provide
such bank’s offered quotation (expressed as a percentage per annum) to prime banks in the London
interbank market for deposits in U.S. Dollars for one (1) month period as of approximately 11:00
a.m., London time, on such Interest Rate Adjustment Date for amounts of not less than $1,000,000.
If at least two such offered quotations are so provided, the LIBOR Rate will be the arithmetic mean
of such quotations. If fewer than two such quotations are so provided, Lender will request any
three (3) major banks in New York City selected by Lender in its sole discretion to provide such
banks’ rate (expressed as a percentage per annum) for loans in U.S. Dollars to leading European
banks for a one (1) month period as of approximately 11:00 a.m. New York City time, on the
applicable Interest Rate Adjustment Date for amounts of not less than $1,000,000. If at least two
such rates are so provided, the LIBOR Rate will be the arithmetic mean of such rates. If fewer
than two such rates are so provided, the then LIBOR Rate will be the LIBOR Rate in effect on the
preceding Interest Rate Adjustment Date. The LIBOR Rate for any Interest Accrual Period shall be
adjusted from time to time, by increasing the rate thereof to compensate Lender for any aggregate
reserve requirements (including, without limitation, all basic, supplemental, marginal and other
reserve requirements and taking into account any transactional adjustments or other scheduled
changes in reserve requirements during any Interest Accrual Period) which are required to be
maintained by Lender with respect to “Eurodollar liabilities” (as presently defined in Regulation D
of the Board of Governors of the Federal Reserve System) of the same term under said Regulation D,
or any other regulations of a Governmental Authority having jurisdiction over Lender. The
establishment of the LIBOR Rate on each Interest Rate Adjustment Date by the Lender and the
Lender’s calculation of the rate of interest applicable to this Note shall (in the absence of
manifest error) be final and binding.

13

 

          “Lien” means any mortgage, deed of trust, deed to secure debt, lien (statutory or
other), pledge, easement, restrictive covenant, hypothecation, assignment, preference, priority,
security interest, or any other encumbrance or charge on or affecting any portion of the Collateral
or any Borrower, or any interest in any of the foregoing, including, without limitation, any
conditional sale or other title retention agreement, any financing lease having substantially the
same economic effect as any of the foregoing, the filing of any financing statement or similar
instrument under the UCC or comparable law of any other jurisdiction, domestic or foreign, and
mechanic’s, materialmen’s and other similar liens and encumbrances.

          “Loan” has the meaning provided in the Recitals hereto.

          “Loan Amount” has the meaning provided in the Recitals hereto.

          “Loan Documents” means, collectively, this Agreement, the Note, the Mortgages, the
Assignments of Leases, the Assignments of Agreements, the Manager’s Subordinations, the
Franchisor’s Subordinations, the Subordination, Attornment and Security Agreements, the
Environmental Guaranty, the Completion Guaranty, the Guaranty of Recourse Obligations, the Cash
Collateral Account Agreement, the Collection Account Agreements, all Interest Rate Cap Agreements,
all Rate Cap Pledge and Security Agreements from Borrowers to Lender, and all other agreements,
instruments, certificates and documents executed or delivered by or on behalf of Borrower or any
Affiliate to evidence or secure the Loan or otherwise in
satisfaction of the requirements of this Agreement, any Mortgage or the other documents listed
above.

          “Loan-to-Value Ratio” means the ratio of the sum of the Principal Indebtedness and
Unfunded Future Advances to the then-current market value of all of the Individual Properties (in
each case as determined by an Appraisal in a form customary for delivery to reasonable
institutional lenders dealing with a loan secured by properties comparable to the Individual
Properties and obtained within ninety (90) days prior to the event that triggered the Appraisal or
obtained within such other time period acceptable to Lender).

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

          “Management Agreement” means the Management Agreement entered into between Manager and
each Borrower or Operating Lessee pertaining to the management of each Individual Property in the
form attached to the Manager’s Subordinations.

          “Manager” means, individually or collectively, as the context may require, each
manager under a Management Agreement, or any successor or assignee, provided that each successor or
assignee shall be acceptable to Lender in Lender’s discretion and, in addition, after

14

 

a Secondary
Market Transaction, shall be subject to Rating Agency Confirmation. As of the date hereof, the
Manager of each Individual Property is set forth on Exhibit F attached hereto.

          “Manager’s Subordination” means, with respect to each Individual Property, the
Manager’s Consent and Subordination of Management Agreement in form and substance satisfactory to
Lender, dated as of the Closing Date, executed by the applicable Manager, each applicable Borrower
which owns the Individual Property, Operating Lessee (if applicable) and Lender, as the same may
thereafter from time to time be supplemented, amended, modified or extended by one or more written
agreements supplemental thereto.

          “Mandatory Funding Date” means June 11, 2008 and December 11, 2008, as applicable.

          “Marriott Trumbull” means that certain hotel known as the Marriott Trumbull located in
Trumbull, Connecticut and owned by Ashford Trumbull LP, a Delaware limited partnership.

          “Material Adverse Effect” means a material adverse effect upon (i) the business or the
financial position or results of operation of any Borrower, (ii) the ability of any Borrower to
perform, or of Lender to enforce, any of the Loan Documents or (iii) the value of (x) the
Collateral with respect to any Individual Property taken as a whole or (y) any Individual Property.

          “Material Lease” means, collectively, (a) any “Material Lease” as defined in each
Mortgage, and (b) each Operating Lease.

          “Maturity Date” means Initial Maturity Date as extended pursuant to and in accordance
with Section 2.10, or such earlier date resulting from acceleration of the Indebtedness by
Lender.

          “Maximum Amount” means the maximum rate of interest designated by applicable laws
relating to payment of interest and usury.

          “Mezzanine Borrower” has the meaning set forth in Section 2.17(g).

          “Mezzanine Loan” has the meaning set forth in Section 2.17.

          “Mold” means any mold or fungus in violation of Legal Requirements present at or in
any Individual Property.

          “Mortgage” means, with respect to each Individual Property, the first priority
Mortgage or Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing or such other
comparable document which is customarily used by prudent lenders in the jurisdiction in which such
Individual Property is located, in form and substance satisfactory to Lender in Lender’s
discretion, dated as of the Closing Date, granted by each applicable Borrower which owns such
Individual Property to Lender (or, in the case of a Deed of Trust, to Deed of Trust Trustee for the
benefit of Lender) with respect to such Individual Property as security for the

15

 

Loan, as the same
may thereafter from time to time be supplemented, amended, modified or extended by one or more
written agreements supplemental thereto.

          “Mortgaged Property” means, collectively, or individually (as the context requires),
the “Individual Property” as defined in the Mortgage for each Individual Property.

          “Multiemployer Plan” means a multiemployer plan defined as such in Section 3(37) of
ERISA to which contributions have been made by Borrower or any ERISA Affiliate and which is covered
by Title IV of ERISA.

          “Net Operating Income” means, with respect to each Individual Property, for any period
the excess, if any, of Operating Income for such period over Operating Expenses for such period.

          “Note” shall have the meaning set forth in the Recitals hereto.

          “Note Holder” shall have the meaning set forth in the Recitals hereto.

          “Note Spread” means 1.72%.

          “Note” has the meaning set forth in the Recitals.

          “OFAC List” means the list of specially designated nationals and blocked persons
subject to financial sanctions that is maintained by the U.S. Treasury Department, Office of
Foreign Assets Control and any other similar list maintained by the U.S. Treasury
Department, Office of Foreign Assets Control pursuant to any Legal Requirements (or is such
list does not exist, the similar list then being maintained by the United States, including,
without limitation, trade embargo, economic sanctions, or other prohibitions imposed by Executive
Order of the President of the United States. The OFAC List currently is accessible through the
internet website at www.treas.gov/ofac/t11sdn.pdf.

          “Officer’s Certificate” means, with respect to each Borrower, a certificate of such
Borrower which is signed by the managing equity owner of such Borrower.

          “Operating Expenses” means, with respect to each Individual Property, for any period,
all expenditures by the Borrower which owns the Individual Property or the Operating Lessee, as and
to the extent required to be expensed under GAAP during such period in connection with the
ownership, operation, maintenance, repair or leasing of such Individual Property, including,
without limitation or duplication expenses in connection with cleaning, repair, replacement,
painting and maintenance; wages, benefits, payroll taxes, uniforms, insurance costs and all other
related expenses for employees of such Borrower, Operating Lessee or any Affiliate engaged in
repair, operation, maintenance of such Individual Property or service to tenants, patrons or guests
of such Individual Property, as applicable; any management and franchise fees and expenses; the
cost of all electricity, oil, gas, water, steam, heat, ventilation, air conditioning and any other
energy, utility or similar item and overtime services; the cost of cleaning supplies; Impositions;
business interruption, liability, casualty and fidelity insurance premiums; legal, accounting and
other professional fees and expenses incurred in connection with the ownership, leasing or
operation of any Individual Property, including, without

16

 

limitation, collection costs and expenses;
costs and expenses of security and security systems; trash removal and exterminating costs and
expenses; advertising and marketing costs; costs of environmental audits and monitoring,
environmental, investigation, remediation or other response actions or any other expenses incurred
with respect to compliance with Environmental Laws; and all other ongoing expenses which in
accordance with GAAP are required to be or are included in such Borrower’s or Operating Lessee’s
annual financial statements as operating expenses of such Individual Property. Operating Expenses
shall be calculated in accordance with GAAP.

          Notwithstanding the foregoing, Operating Expenses shall not include (v) capital improvement
costs, (w) any taxes imposed on the applicable Borrower’s or Operating Lessee’s net income, (x)
depreciation or amortization of intangibles (y) Debt Service and other payments in connection with
the Indebtedness, or (z) any rental or other payments due and payable to Borrower by Operating
Lessee pursuant to the terms of any Operating Lease.

          “Operating Income” means, with respect to each Individual Property, for any period,
for Borrower which owns the Individual Property, all revenue derived from the ownership and
operation of each Individual Property from whatever source, including, without limitation: all
amounts payable as Rents and all other amounts payable under Leases (other than the Operating
Lease) or other third party agreements relating to the ownership and operation of such Individual
Property; business interruption insurance proceeds; and all other amounts which in accordance with
GAAP are required to be or are included in such Borrower’s or Operating Lessee’s annual financial
statements as operating income of such Individual Property but excluding any lease termination
payments, use and occupancy or other taxes on receipts required to be accounted for by Borrower to
any Governmental Authority, refunds on uncollectible
accounts, sales of furniture, fixtures and equipment, Insurance Proceeds (other than business
interruption insurance), Condemnation Proceeds, rents, revenues and receipts received by tenants
and concessionaires located at the Individual Properties, unforfeited security deposits, utility
and other similar deposits and any disbursements to Borrower from the Cash Collateral Account and
any Reserve Accounts. Operating Income shall not include any rental or other payments due and
payable to Borrower by Operating Lessee pursuant to the terms of any Operating Lease.

          “Operating Lease” shall mean, individually or collectively, as the context may
require, the operating lease or similar agreement entered into by and between the applicable
Borrower and the Operating Lessee, which governs the operation of one of more of the Individual
Properties as the same may be amended, restated, replaced, supplemented or modified from time to
time, in accordance with the terms hereof.

          “Operating Lessee” shall mean, individually or collectively, as the context may
require, any operating lessee under an Operating Lease, which is an Affiliate of the Borrowers and
which is a Special Purpose Entity, provided that such operating lessee shall be selected in
accordance with the terms hereof. As of the date hereof, the term Operating Lessee is Ashford TRS
Nickel LLC, a Delaware limited liability company, the current operating lessee of one or more
Individual Properties, and an Affiliate of the Borrowers.

          “Other Borrowings” means, without duplication (but not including the Indebtedness or
any Transaction Costs payable in connection with the Transactions), (i) all

17

 

indebtedness of any
Borrower for borrowed money or for the deferred purchase price of property or services, (ii) all
indebtedness of any Borrower evidenced by a note, bond, debenture or similar instrument, (iii) the
face amount of all letters of credit issued for the account of any Borrower and, without
duplication, all unreimbursed amounts drawn thereunder, (iv) all indebtedness of any Borrower
secured by a Lien on any property owned by any Borrower whether or not such indebtedness has been
assumed, (v) all Contingent Obligations of any Borrower, and (vi) all payment obligations of any
Borrower under any interest rate protection agreement (including, without limitation, any interest
rate swaps, caps, floors, collars or similar agreements) and similar agreements.

          “Partial Release” shall have the meaning set forth in Section 2.15.

          “Payment Date” shall mean January 11, 2007 and thereafter on the same calendar day of
each calendar month during the term of the Loan and continuing to and including the Maturity Date
(or, if the Payment Date or Maturity Date is not on a Business Day, the immediately preceding
Business Day).

          “PBGC” means the Pension Benefit Guaranty Corporation established under ERISA, or any
successor thereto.

          “Permits” means, collectively, “Permits” as defined in each Mortgage.

          “Permitted Encumbrances” means, with respect to each Individual Property, (i) the Lien
created by the Mortgage for such Individual Property or the other Loan Documents, (ii) all Liens
and other matters disclosed in the Title Insurance Policy concerning the Individual Property, or
any part thereof which have been approved by Lender in Lender’s discretion, (iii) Liens, if any,
for Impositions with respect to imposed by any Governmental Authority not yet
due or delinquent or being contested in good faith and by appropriate proceedings in
accordance with the Mortgage for such Individual Property, (iv) without limiting the foregoing, any
and all governmental, public utility and private restrictions, covenants, reservations, easements,
licenses or other agreements of an immaterial nature which may hereafter be granted by each
applicable Borrower which owns the Individual Property after the Closing Date and which do not
materially and adversely affect (a) the ability of any Borrower to pay any of its obligations to
any Person as and when due, (b) the marketability of title to such Individual Property, (c) the
fair market value of such Individual Property, or (d) the use or operation of such Individual
Property as of the Closing Date and thereafter, (v) rights of existing and future tenants,
licensees and concessionaries pursuant to Leases in effect as of the date hereof or entered into in
accordance with the Loan Documents, (vi) the Operating Leases, (vii) FF&E Financing applicable to
the Individual Property, (viii) liens in favor of Mortgagee, and (ix) any liens securing the
Mezzanine Loan pursuant to Section 2.17 of the Loan Agreement.

          “Permitted Investments” has the meaning provided in the Cash Collateral Account
Agreement.

          “Permitted Mezzanine Lender” shall mean (a) Countrywide, or any Affiliate thereof, or
(b) a third-party institutional lender or institutional investor that is reasonably acceptable to
Lender.

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          “Permitted Transfer” shall mean, provided no Event of Default has occurred and is
continuing, (A) with respect to each Individual Property and each Borrower: (i) Permitted
Encumbrances; (ii) all transfers of worn out or obsolete furnishings, fixtures or equipment that
are (if deemed necessary or advisable by the applicable Borrower or Operating Lessee) reasonably
promptly replaced with property of equivalent value and functionality in the ordinary course of the
Borrowers’ or Operating Lessees operation of each Individual Property; (iii) all Leases which are
not Material Leases; (iv) all Material Leases which have been approved by Lender in writing
pursuant to the terms of this Agreement; (v) transfers of direct or indirect interests in Borrower
which in the aggregate during the term of the Loan (a) do not exceed forty-nine percent (49%) of
the total interests in any Borrower, (b) do not result in any partner’s, member’s or other Person’s
interest in any Borrower exceeding forty-nine percent (49%) of the total interests in any Borrower,
and (c) do not cause the transferee to acquire control of Borrower or SPE Equity Owner; (vi)
transfers of direct or indirect interests in Borrower to a wholly-owned direct or indirect
subsidiary of Guarantor; provided that Borrower delivers a non-consolidation opinion substantially
in the form delivered at closing, together with additional pairings to such transferee (which
pairings shall be the same as the pairings to the Guarantor in the opinion delivered on the Closing
Date); (vii) any other transfer of direct or indirect interests in Borrower provided that (a) prior
to any Secondary Market Transaction, Lender shall have consented to such transfer or transfers, (b)
after any Secondary Market Transaction, (1) Lender shall have consented to such transfer or
transfers and (2) the Rating Agencies shall have confirmed in writing that such transfer or
transfers shall not result in a downgrade, withdrawal or qualification of any securities issued in
connection with such Secondary Market Transaction, (c) acceptable opinions relating to such
transfer or transfers shall have been delivered by Borrowers to Lender and the Rating Agencies
(including, without limitation, tax and bankruptcy opinions), and (d) Borrowers pay all reasonable
expenses incurred by Lender in connection with such transfer or transfers (including Rating Agency
fees and expenses); (viii) transfers, issuance, conversions, pledges and redemptions of stock,
membership interests and partnership interests in Ashford
Hospitality Trust, Inc., a Maryland corporation (or its successors), and (ix) the merger or
consolidation of Ashford Hospitality Trust, Inc. (or its successors) with a Qualified Transferee;
provided that no Transfer in clauses (i) through (ix) above shall include any direct or indirect
legal or beneficial ownership interest, or any other interest of any nature or kind whatsoever, of
any SPE Equity Owner in any Borrower or in any other SPE Equity Owner, as applicable, and (B) with
respect to Operating Lessee, provided no Event of Default has occurred and is continuing, (i)
transfers of direct or indirect equity interests in Operating Lessee which in the aggregate during
the term of the Loan (a) do not exceed forty-nine percent (49%) of the total interests in Operating
Lessee, (b) do not result in any partner’s, member’s or other Person’s interest in any Operating
Lessee exceeding forty-nine percent (49%) of the total interests in Operating Lessee, and (c) do
not cause the transferee to acquire control of Operating Lessee; (ii) transfers of direct or
indirect interests in Operating Lessee to a wholly-owned direct or indirect subsidiary of
Guarantor; provided that Borrower delivers a non-consolidation opinion substantially in the form
delivered at closing, together with additional pairings to such transferee (which pairings shall be
the same as the pairings to the Guarantor in the opinion delivered on the Closing Date); (iii) any
other transfer of direct or indirect equity interests in Operating Lessee provided that (a) prior
to any Secondary Market Transaction, Lender shall have consented to such transfer or transfers, (b)
after any Secondary Market Transaction, (1) Lender shall have consented to such transfer or
transfers and (2) the Rating Agencies shall have confirmed in

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writing that such transfer or
transfers shall not result in a downgrade, withdrawal or qualification of any securities issued in
connection with such Secondary Market Transaction, (c) acceptable opinions relating to such
transfer or transfers shall have been delivered by Operating Lessee or the Borrowers to Lender and
the Rating Agencies (including, without limitation, tax and bankruptcy opinions), and (d) Operating
Lessee or the Borrowers pay all reasonable expenses incurred by Lender in connection with such
transfer or transfers (including Rating Agency fees and expenses); (iii) transfers, issuance,
conversions, pledges and redemptions of stock, membership interests and partnership interests in
Ashford Hospitality Trust, Inc., a Maryland corporation (or its successors); and (iv) the merger or
consolidation of Ashford Hospitality Trust, Inc. (or its successors) with a Qualified Transferee.

          “Person” means any individual, corporation, limited liability company, partnership,
joint venture, estate, trust, unincorporated association, or any other entity, any federal, state,
county or municipal government or any bureau, department or agency thereof and any fiduciary acting
in such capacity on behalf of any of the foregoing.

          “Plan” means an employee benefit or other plan established or maintained by any
Borrower or any ERISA Affiliate and that is covered by Title IV of ERISA, other than a
Multiemployer Plan.

          “Plaza Tower Leases” means each Lease – Business Property between Plaza Towers,
L.L.C., as landlord, and Ashford Iowa City LP, as successor to MIP Lessee, L.P., as tenant, dated
August 13, 2004 and July of 2005, respectively, relating to the property set forth therein.

          “Pre-approved Capital Expenditure Budget” means that certain capital expenditure
budget attached hereto as Exhibit I.

          “Principal Indebtedness” means the principal amount of the entire Loan outstanding as
the same may be increased or decreased, as a result of prepayment, Additional Advances or
otherwise, from time to time.

          “Proceeds” means all “proceeds,” as such term is defined in the UCC, and, to the
extent not included in such definition, all proceeds whether cash or non-cash, movable or
immovable, tangible or intangible (including all Insurance Proceeds, all Condemnation Proceeds and
proceeds of proceeds), from the Collateral, including, without limitation, those from the sale,
exchange, transfer, collection, loss, damage, disposition, substitution or replacement of any of
the Collateral and all income, gain, credit, distributions and similar items from or with respect
to the Collateral.

          “Qualified Substitute Property” means the fee simple interest in real property of the
same property type as the Individual Property being replaced, market concentration, building
concentration, in each case as determined by Lender in its good faith discretion, located in the
United States of America, together with all buildings and other improvements thereon and leasehold
interests therein, added to the Individual Property subject to the Liens of the Loan Documents in
connection with an Individual Property Substitution pursuant to Section 2.16 after

20

 

satisfaction of the conditions described therein. No Qualified Substitute Property may be subject
to a ground lease.

          “Qualified Transferee” shall mean (A) an entity that (i) has been regularly engaged in
the ownership commercial real estate similar to the Property for the past three (3) years, (ii) has
not within the past five (5) years been the subject of any bankruptcy or insolvency proceeding, and
(iii) has experience and reputation in the commercial real estate industry that is consistent with
that of Guarantor or (B) a surviving entity that is Ashford Hospitality Trust, Inc., provided that
the related merger or consolidation does not result in a change of a majority of the directors on
the board of directors.

          “Rate Cap Pledge and Security Agreement” means that certain form of Rate Cap Pledge
and Security Agreement attached hereto as Exhibit E.

          “Rating Agencies” means Fitch, Inc., Moody’s Investors Service, Inc., S&P, and
Dominion Bond Rating Service Limited, or any successor thereto, and any other nationally recognized
statistical rating organization but only to the extent that any of the foregoing have been or will
be engaged by Lender or its designees in connection with or in anticipation of a Secondary Market
Transaction (each, individually a “Rating Agency”).

          “Rating Agency Confirmation” means a written confirmation from each of the Rating
Agencies rating any securities issued in connection with a Secondary Market Transaction that an
action shall not result in a downgrade, withdrawal or qualification of any securities issued in
connection with a Secondary Market Transaction.

          “Recourse Distributions” has the meaning provided in Section 8.14.

          “Recourse Liability” and “Recourse Liabilities” have the meaning provided in
Section 8.14.

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

          “Release Price” shall have the meaning as set forth in Section 2.15(b).

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

          “REMIC” means a real estate mortgage investment conduit as defined under Section 860D
of the Code.

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          “Remington Manager” means Remington Management, L.P., a Delaware limited partnership.

          “Rents” means, collectively, “Rents” as defined in each Mortgage.

          “Required Debt Service Payment” means, on any Payment Date, the Debt Service then due
and payable by Borrowers.

          “Reserve Account” means any account established pursuant to the Loan Agreement or the
Cash Collateral Account Agreement.

          “Reuters Screen LIBO Page” means the display page designated as “LIBO” on the Reuters
Monitor Money Rates Service.

          “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw Hill
Companies, Inc.

          “Second Extended Maturity Date” has the meaning set forth in Section 2.10.

          “Second Extension Term” has the meaning set forth in Section 2.10.

          “Secondary Market Transaction” shall have the meaning set forth in Section
2.13.

          “Secretary’s Certificate” means, with respect to each Borrower and Operating Lessee,
the certificate in form and substance satisfactory to Lender in Lender’s discretion dated as of the
Closing Date.

          “Securities Act” has the meaning provided in Section 2.13(c).

          “Sheraton Iowa City” means that certain hotel known as Sheraton Iowa City located in
Iowa City, Iowa and owned by Ashford Iowa City LP, a Delaware limited partnership.

          “Single Member LLC” means a limited liability company that (i) is either (a) a single
member limited liability company or (b) a multiple member limited liability company that does not
have a Single-Purpose Entity that owns at least one percent (1%) of the equity interests in such
limited liability company as its managing member, and (ii) is organized under the laws of the State
of Delaware.

          “Single-Purpose Entity” means a corporation, limited partnership, or limited liability
company which, at all times since its formation and thereafter (i) was and will be organized solely
for the purpose of (w) owning, leasing, operating, managing, financing and maintaining any or all
of the Individual Properties or (x) acting as an operating lessee pursuant to the terms of an
Operating Lease or (y) acting as the managing member of the limited liability company which owns
any or all of the Individual Properties or (z) acting as the general partner of a limited
partnership which owns any or all of the Individual Property, (ii) has not and will not engage in
any business unrelated to (x) the ownership, leasing, operating, managing, financing and
maintaining of any or all of the Individual Properties or (y) acting as a member of a limited
liability company which owns any or all of the Individual Properties or (z) acting as a general

22

 

partner of a limited partnership which owns any or all of the Individual Properties, (iii) has not
and will not have any assets other than (x) those related to any or all of the Individual
Properties or (y) its member interest in the limited liability company which owns any or all of the
Individual Properties or (z) its general partnership interest in the limited partnership which owns
any or all of the Individual Properties, as applicable, (iv) has not and will not engage in, seek
or consent to any dissolution, winding up, liquidation, consolidation or merger, and, except as
otherwise expressly permitted by this Agreement, has not and will not engage in, seek or consent to
any asset sale, transfer of partnership or membership or shareholder interests, or amendment of its
limited partnership agreement, articles of incorporation, articles of organization, certificate of
formation or operating agreement (as applicable), (v) if such entity is a limited partnership, has
and will have at all times while the Loan is outstanding as its only general partners, general
partners which are and will be Single-Purpose Entities which are corporations or a Single Member
LLC, (vi) if such entity is a corporation or a Single Member LLC, at all relevant times while the
Loan is outstanding, has and will have at least two Independent Directors, (vii) the board of
directors of such entity (or if such entity is a Single Member LLC, the entity, each member, each
director, each manager, the board of managers, if any, and all other Persons on behalf of such
entity), has not taken and will not take any action requiring the unanimous affirmative vote of one
hundred percent (100%) of the members and all directors and managers, as applicable, unless all of
the directors or managers, as applicable, including, without limitation, all Independent Directors,
shall have participated in such vote, (viii) has not and will not fail to correct any known
misunderstanding regarding the separate identity of such entity, (ix) if such entity is a limited
liability company (other than a Single Member LLC), has and will have at least one member that is
and will be a Single-Purpose Entity which is and will be a corporation, and such corporation is and
will be the managing member of such limited liability company, (x) without the unanimous consent of
all of the partners, directors or managers (including, without limitation, all Independent
Directors) or members, as applicable, has not and will not with respect to itself or to any other
entity in which it has a direct or indirect legal or beneficial ownership interest (w) file a
bankruptcy, insolvency or reorganization petition or otherwise institute insolvency proceedings or
otherwise seek any relief under any laws relating to the relief
from debts or the protection of debtors generally; (x) seek or consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official for such
entity or such entity’s properties; (y) make any assignment for the benefit of such entity’s
creditors; or (z) take any action that might cause such entity to become insolvent, (xi) has
maintained and will maintain its accounts, books and records separate from any other Person or
entity, (xii) has maintained and will maintain its books, records, resolutions and agreements as
official records, (xiii) has not commingled and will not commingle its funds or assets with those
of any other entity except as permitted by the Loan Documents, (xiv) has held and will hold its
assets in its own name, (xv) has conducted and will conduct its business in its name and will not
permit its name, identity or type of entity to be changed, (xvi) has maintained and will maintain
its financial statements, accounting records and other entity documents separate from any other
Person or entity, except to the extent that
such Person or entity is required to file consolidated
tax returns by law; provided, that any such consolidated financial statement shall contain a
footnote indicating that separate assets and liabilities are neither available to pay the debts of
the consolidated entity nor constitute obligations of the consolidated entity, (xvii) has paid and
will pay its own liabilities out of its own funds and assets, (xviii) has observed and will observe
all partnership, corporate or limited liability company formalities as applicable, (xix) has
maintained

23

 

and will maintain an arms-length relationship with its Affiliates, (xx) if (x) such
entity owns all of any portion of any or all of the Individual Properties, has and will have no
indebtedness other than the Indebtedness and the FF&E Financing, unsecured trade payables and
operational debt in the ordinary course of business relating to the ownership and operation of such
Individual Property which (1) are not evidenced by a promissory note (2) when aggregated with the
unsecured trade payables of all other Borrowers and Operating Lessee do not exceed, at any time, a
maximum amount of two percent (2.0%) of the Loan Amount and (3) are paid within 60 days of the date
incurred (unless same are being contested in accordance with the terms of this Agreement), or other
indebtedness that has been fully discharged on or prior to the date hereof, or (y) if such entity
acts as the general partner of a limited partnership which owns such Individual Property, has and
will have no indebtedness other than unsecured trade payables in the ordinary course of business
relating to acting as general partner of the limited partnership which owns such Individual
Property which (1) do not exceed, at any time, $10,000 and (2) are paid within 60 days of the date
incurred, or (z) if such entity acts as a managing member of a limited liability company which owns
such Individual Property, has and will have no indebtedness other than unsecured trade payables and
operational debt in the ordinary course of business relating to acting as a member of the limited
liability company which owns such Individual Property which (1) do not exceed, at any time, $10,000
and (2) are paid within 60 days of the date incurred, (xxi) has not and will not assume or
guarantee or become obligated for the debts of any other entity or hold out its credit as being
available to satisfy the obligations of any other entity except for the Indebtedness, (xxii) has
not acquired and will not acquire obligations or securities of its partners, members or
shareholders, (xxiii) has allocated and will allocate fairly and reasonably shared expenses,
including, without limitation, shared office space and use separate stationery, invoices and
checks, (xxiv) except pursuant hereto, has not and will not pledge its assets for the benefit of
any other person or entity, (xxv) has held and identified itself and will hold itself out and
identify itself as a separate and distinct entity under its own name and not as a division or part
of any other person or entity, (xxvi) has not made and will not make loans to any person or entity,
(xxvii) has not and will not identify its partners, members or shareholders, or any affiliates of
any of them as a division or part of it, (xxviii) if such entity is a limited liability company
(other than a Single Member LLC), such entity shall dissolve only upon the bankruptcy of the
managing member, and such entity’s articles of organization,
certificate of formation and/or operating agreement, as applicable, shall contain such
provision, (xxix) has not entered and will not enter into or be a party to, any transaction with
its partners, members, shareholders or its affiliates except in the ordinary course of its business
and on terms which are intrinsically fair and are no less favorable to it than would be obtained in
a comparable arms-length transaction with an unrelated third party and which are fully disclosed to
Lender in writing in advance, (xxx) has paid and will pay the salaries of its own employees from
its own funds, (xxxi) has maintained and intends to maintain adequate capital in light of its
contemplated business operations, (xxxii) if such entity is a limited liability company (other than
a Single Member LLC) or limited partnership, and such entity has one or more managing members or
general partners, as applicable, then such entity shall continue (and not dissolve) for so long as
a solvent managing member or general partner, as applicable, exists and such entity’s
organizational documents shall contain such provision, (xxxiii) if such entity is a Single Member
LLC, its organizational documents shall provide that, as long as any portion of the Indebtedness
remains outstanding, upon the occurrence of any event that causes the last remaining member of such
Single Member LLC to cease to be a member of such Single Member LLC (other than (y)

24

 

upon an
assignment by such member of all of its limited liability company interest in such Single Member
LLC and the admission of the transferee, if permitted pursuant to the organizational documents of
such Single Member LLC and the Loan Documents, or (z) the resignation of such member and the
admission of an additional member of such Single Member LLC, if permitted pursuant to the
organizational documents of such Single Member LLC and the Loan Documents), the individuals acting
as the Independent Directors of such Single Member LLC shall, without any action of any Person and
simultaneously with the last remaining member of the Single Member LLC ceasing to be a member of
the Single Member LLC, automatically be admitted as non-economic members of the Single Member LLC
(the “Special Member”) and shall preserve and continue the existence of the Single Member
LLC without dissolution, and (xxxiv) if such entity is a Single Member LLC, its organizational
documents shall provide that for so long as any portion of the Indebtedness is outstanding, no
Special Member may resign or transfer its rights as Special Member unless (y) a successor Special
Member has been admitted to such Single Member LLC as a Special Member, and (z) such successor
Special Member has also accepted its appointment as the Independent Director.

          “Special Member” has the meaning provided in the definition of “Single-Purpose
Entity.”

          “SPE Equity Owner” means Ashford Philly GP LLC, Ashford Anchorage GP LLC, Ashford
Minneapolis Airport GP LLC, Ashford MV San Diego LLC, Ashford Walnut Creek GP LLC, Ashford Trumbull
GP LLC, and Ashford Iowa City GP LLC, each a Delaware limited liability company.

          “SPE Equity Owner’s Certificate” means the SPE Equity Owner’s Certificate in form and
substance satisfactory to Lender dated as of the Closing Date.

          “Strike Rate” means 6.25% per annum.

          “Subordination, Attornment and Security Agreement” shall mean for each Operating
Lease, a Subordination, Attornment and Security Agreement or other similar agreement among Lender,
the applicable Borrower and the Operating Lessee, in form and
substance acceptable to Lender, as the same may be amended, restated, replaced, supplemented
or otherwise modified in accordance with the terms hereof.

          “Survey” means, with respect to each Individual Property, a survey of such Individual
Property satisfactory to Lender, (i) prepared by a registered Independent surveyor satisfactory to
Lender and Title Insurer and containing a surveyor’s certification satisfactory to Lender, (ii)
together with a metes and bounds or platted lot/block legal description of the land corresponding
with the survey, and (iii) prepared based on a scope of work determined by Lender in Lender’s
discretion.

          “Taking” has the meaning, with respect to each Individual Property, provided in the
Mortgage for such Individual Property.

          “Tax and Insurance Monthly Installment” has the meaning set forth in Section
2.11(d).

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          “Tax and Insurance Reserve Account” has the meaning set forth in Section
2.11(d).

          “Tax Fair Market Value” means, with respect to each Individual Property, the fair
market value of such Individual Property, and (x) shall not include the value of any personal
property or other property that is not an “interest in real property” within the meaning of
Treasury Regulation §§1.860G-2 and 1.856-3(c), or is not “qualifying real property” within the
meaning of Treasury Regulation §1.593-11(b)(iv), and (y) shall be reduced by the “adjusted issue
price” (within the meaning of Code § 1272(a)(4)) (the “Tax Adjusted Issue Price”) of any
indebtedness, other than the Loan, secured by a Lien affecting such Individual Property, which Lien
is prior to or on a parity with the Lien created under the Mortgage for such Individual Property.

          “Title Instruction Letter” means an instruction letter in form and substance
satisfactory to Lender in Lender’s discretion.

          “Title Insurance Policy” means, with respect to each Individual Property, a loan
policy of title insurance for such Individual Property issued by Title Insurer with respect to such
Individual Property in an amount acceptable to Lender and insuring the first priority lien in favor
of Lender created by the Mortgage for such Individual Property, in each case acceptable to Lender
in Lender’s discretion.

          “Title Insurer” means Chicago Title Insurance Company and First American Title
Insurance Company, as co-insurers.

          “Transaction Costs” means all fees, costs, expenses and disbursements of Lender
relating to the Transactions, including, without limitation, all appraisal fees, legal fees,
accounting fees and the costs and expenses described in Section 8.24.

          “Transactions” means the transactions contemplated by the Loan Documents.

          “Transfer” means any conveyance, transfer (including, without limitation, any transfer
of any direct or indirect legal or beneficial interest (including, without limitation, any
profit interest) in any Borrower, Operating Lessee or any SPE Equity Owner), any sale, any
Lease (including, without limitation, any amendment, extension, modification, waiver or renewal
thereof), or any Lien, whether by law or otherwise, of, on or affecting any Collateral, any
Borrower, Operating Lessee or any SPE Equity Owner, other than a Permitted Transfer.

          “Transferee” has the meaning provided in Section 2.18.

          “UCC” means, with respect to any Collateral, the Uniform Commercial Code in effect in
the jurisdiction in which the relevant Collateral is located.

          “UCC Searches” has the meaning provided in Section 3.1(a)(v).

          “Underwritten Net Cash Flow” has the meaning set forth in the definition of Debt
Service Coverage Ratio.

26

 

          “Unfunded Future Advances” means the aggregate amount of Additional Advances that have
not been funded by Lender to Borrower at any given time, as adjusted pursuant to Section 2.1(d).

          “Unfunded Participation Holders” has the meaning provided in Section 8.16.

          “Unfunded Participation Interests” has the meaning provided in Section 8.16.

          “Year 3” means December 12, 2008 through December 11, 2009.

          “Year 4” means December 12, 2009 through December 11, 2010.

          “Year 5” means December 12, 2010 through December 11, 2011.

ARTICLE 2

GENERAL TERMS

     Section 2.1. The Loan.

          (a) On the date hereof, Borrowers shall receive an initial advance of the Loan Amount in the
amount of $212,000,000. In addition, Lender agrees to make multiple additional advances in an
aggregate amount (the “Additional Advances”) equal to up to $35,000,000 (as adjusted
pursuant to Section 2.1(d)). Any amount borrowed and repaid hereunder may not be reborrowed.
Borrower’s obligation to pay the Indebtedness is evidenced by this Agreement and by the Note and
secured by the Mortgages and the other Loan Documents. Lender shall advance the Additional
Advances to Borrower upon the satisfaction of the following conditions precedent:

               (i) no Event of Default (nor any event or circumstance that with the giving of notice or the
passage of time (or both) would constitute an Event of Default) then exists;

               (ii) at least ten (10) Business Days (but not more than sixty (60) days) prior to the date on
which Borrower requests that an Additional Advance be made, Borrower shall have delivered to Lender
a written request indicating the requested amount of the Additional Advance for work set forth on
the Pre-approved Capital Expenditure Budget (which request shall not be delivered more than once in
a 30-day period), together with all other information and items required to satisfy the conditions
precedent to the making of such advance set forth in this Section 2.1 and as may otherwise
be reasonably requested by Lender (an “Advance Request”);

               (iii) no other Additional Advance has been made in the month in which such Additional Advance
is requested to be funded;

               (iv) no Casualty or Taking shall have occurred with respect to the Individual Property for
which the Additional Advance is being made that would result in such

27

 

Additional Advance being
inadequate to complete the improvements set forth on the Pre-approved Capital Expenditure Budget
with respect to such Individual Property;

               (v) the title company that issued the title insurance policy insuring the Mortgages shall have
issued (or shall have committed to issue on the date the Additional Advance is made) a continuation
of title showing title to the applicable Individual Property for which the Additional Advance is
being made to be vested in Borrower, with no subordinate items and with no exceptions to the title
of the applicable Individual Property other than Permitted Encumbrances (with affirmative insurance
that no Impositions are delinquent, no mechanic’s or supplier’s liens have attached and, if
available and applicable, that neither public nor private conditions, covenants or restrictions, if
any, affecting the applicable Individual Property have been violated);

               (vi) Borrowers shall have paid to Lender (or shall pay from the proceeds of the Additional
Advance on the date the same is made) all costs and expenses incurred by Lender in connection with
the making of the Additional Advance (including reasonable legal fees);

               (vii) Borrowers and Guarantor shall have executed and delivered to Lender such amendments to
and reaffirmations of the Loan Documents as Lender may reasonably request, including (i) an amended
and restated Note evidencing a Principal Indebtedness in an amount equal to the Initial Advance
plus any Additional Advance, (ii) a modification to the Mortgages, and (iii) such legal opinions in
connection with the foregoing as Lender may reasonably require;

               (viii) Borrower shall have delivered to Lender concurrently with the Advance Request copies of
bills, invoices, receipts and other documentation reasonably required by Lender (including with
respect to any cost for labor or materials furnished to any Individual Property in excess of
$10,000, sworn unconditional lien wavers from any Person providing such labor or materials) to
establish that the costs are reasonable and are substantially in accordance with market rates, that
the work relating thereto has been completed, and that such amounts are then due or have been paid;
and

               (ix) the Additional Advance must be for work at an Individual Property in accordance with the
amounts and work contemplated by the Pre-approved Capital Expenditure
Budget and Borrower shall have delivered to Lender evidence reasonably satisfactory to Lender
that such Additional Advance is for work in accordance with the Pre-approved Capital Expenditure
Budget.

          (b) Mandatory Funding of Additional Advances.

               (i) If Borrowers have not drawn at least 50% of the aggregate amount of Additional Advances
permitted under this Agreement (as adjusted pursuant to Section 2.1(d)) on or before June 11, 2008,
then Lender shall fund into the FF&E Reserve Account, the amount necessary so that an aggregate of
50% of the aggregate amount of Additional Advances permitted under this Agreement (as adjusted
pursuant to Section 2.1(d)) of Additional Advance(s) have been made on or by June 11, 2008. On or
before December 11, 2008, any

28

 

remaining undrawn amount under the Additional Advances shall be
funded by Lender into the FF&E Reserve Account provided the conditions precedent set forth in this
Section 2.1 have been satisfied.

          (ii) Borrowers shall satisfy the conditions set forth in Section 2.1(a) at least ten
(10) Business Days prior to the applicable Mandatory Funding Date.

          (c) The requesting of the Additional Advance shall constitute, without the necessity of
specifically containing a written statement to such effect, a confirmation, representation and
warranty by Borrowers to Lender that all of the applicable conditions to be satisfied in connection
with the making of the Additional Advance have been satisfied (unless waived in writing by Lender).

          (d) The amount of Additional Advance(s) permitted under this Agreement shall be decreased in
connection with a Partial Release of an Individual Property by the amount set forth on the
Pre-approved Capital Expenditure Budget for such Individual Property if such expenditures have not
already been funded by Lender as an Additional Advance.

     Section 2.2. Use of Proceeds. The initial proceeds of the Loan funded on the Closing
Date shall be used for the following purposes: (a) to pay the acquisition costs for each
Individual Property, (b) to fund any upfront reserves or escrow amounts required hereunder, and (c)
to pay any Transaction Costs. The proceeds of the Additional Advances shall be used for the
following purposes: (a) capital expenditures in accordance with the Pre-Approved Capital
Expenditure Budget, (b) to fund the FF&E Reserve Account, and (c) to pay any Transaction Costs.
Any excess will be available to Borrowers (and appointed at Borrower’s request) and may be used for
any lawful purpose.

     Section 2.3. Security for the Loan. The Note and each Borrower’s obligations
hereunder and under the other Loan Documents shall be secured by all Mortgages, the Assignments of
Leases, the Assignments of Agreements, the Manager’s Subordinations, and the security interests and
Liens granted in this Agreement and in the other Loan Documents.

     Section 2.4. Borrowers’ Note.

          (a) Each Borrowers’ obligation to pay the principal of and interest on the Loan (including
Late Charges, Default Rate interest, and the prepayment premium, if any), shall be evidenced by
this Agreement and by the Note, duly executed and delivered by all Borrowers.
The Note shall be payable as to principal, interest, Late Charges, Default Rate interest and
prepayment premium, if any, as specified in this Agreement, with a final maturity on the Maturity
Date. Borrowers shall pay all outstanding Indebtedness on the Maturity Date.

          (b) Lender is hereby authorized, at its option, to endorse on a schedule attached to the Note
(or on a continuation of such schedule attached to the Note and made a part thereof) an appropriate
notation evidencing the date and amount of each payment of principal, interest, Late Charges,
Default Rate interest and prepayment premium, if any, in respect thereof, which schedule shall be
made available to Borrowers, at Borrowers’ sole cost and expense on reasonable advance notice, for
examination at Lender’s offices.

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     Section 2.5. Principal, Interest and Other Payments.

          (a) Accrual of Interest. Interest shall accrue on the outstanding principal balance
of the Note and all other amounts due to Lender under the Loan Documents at the LIBOR Interest
Rate.

          (b) Monthly Payments of Interest at the LIBOR Interest Rate. On each Payment Date
(including, without limitation, the Maturity Date), Borrowers shall pay to Lender interest on the
unpaid Principal Indebtedness calculated under the Note at the applicable LIBOR Interest Rate which
has accrued and will accrue under such Note through and including the last day of the Interest
Accrual Period in which such Payment Date occurs.

          (c) Payment Dates. All payments required to be made pursuant to paragraph (b) above
shall be made beginning on the first Payment Date; provided, however, that Borrower
shall pay interest for the first Interest Accrual Period on the Closing Date.

          (d) Calculation of Interest. Interest shall accrue on the outstanding principal
balance of the Loan and all other amounts due to Lender under the Loan Documents commencing upon
the Closing Date. Interest shall be computed on the actual number of days elapsed, based on a 360
day year.

          (e) Default Rate Interest. Upon the occurrence and during the continuance of an Event
of Default, and at the sole option of Lender and without need for notice to the Borrowers, the
entire unpaid amount outstanding hereunder and under the Note will bear interest at the Default
Rate.

          (f) Late Charge. Except for payment on the Maturity Date, if Borrowers fail to make
any payment of any sums due under the Loan Documents on the date when the same is due, Borrowers
shall pay a Late Charge. With respect to payment on the Maturity Date, if Borrowers fail to make
any payments of any sums due on the Maturity Date under the Loan Documents within five (5) days
after the Maturity Date, Borrowers shall pay a Late Charge.

          (g) Other Payments. On each Payment Date, Borrowers shall pay to Lender the Tax and
Insurance Monthly Installment.

          (h) Maturity Date. On the Maturity Date, Borrowers shall pay to Lender all amounts
owing under the Loan Documents including, without limitation, interest, principal, Late Charges
(subject to Section 2.5 (f)) and Default Rate interest, together with interest accrued on
the Loan through and including the last day of the Interest Accrual Period during which the
Maturity Date occurs.

     Section 2.6. Prepayment.

          (a) Provided that no Event of Default has occurred and is continuing hereunder, Borrowers may
prepay the Indebtedness in full (or in part solely in connection with the consummation of a Partial
Release) at any time after June 11, 2008, provided, however, that at any time after the Closing
Date, Borrowers may prepay the Indebtedness without penalty in part solely in connection with the
consummation of a Partial Release of Sheraton Iowa City

30

 

and/or Marriott Trumbull in the event of a
sale of such hotel(s) to an unaffiliated third party in an arm’s length transaction and in
accordance with Section 2.15. In the event that any such prepayment in the preceding
sentence is not made on a Payment Date, simultaneously therewith, the Borrowers shall pay to Lender
all interest accrued on the amount of the Loan prepaid through and including the last day of the
Interest Accrual Period during which such prepayment occurs.

          (b) At any time during the term of the Loan, if any Borrower is required by Lender under the
provisions of any Mortgage to prepay the Loan or any portion thereof in the event of damage to or
destruction of, or a Taking of any Individual Property, such Borrower shall pay any Insurance
Proceeds or Condemnation proceeds in the following manner and order of priority (i) first, to
prepay the Loan to the full extent of the Insurance Proceeds or the Condemnation Proceeds, as
applicable, to the extent of the Allocated Loan Amount for the applicable Individual Property
without penalty together with interest through the end of the Interest Accrual Period, and (ii) to
the Borrowers.

          (c) All prepayments of the Indebtedness made pursuant to this Section shall be applied by
Lender in accordance with the provisions of Section 2.7 hereof.

          (d) No Borrower shall be permitted at any time to prepay all or any part of the Loan except as
expressly provided in this Section.

          (e) No prepayment shall be permitted after 12:00 noon, New York City time, or on the
12th calendar day of a month unless such day is the second LIBOR Business Day prior to
the 15th day of such month.

     Section 2.7. Application of Payments. At all times, all proceeds of repayment,
including without limitation any payment or recovery on the Collateral and any prepayments on the
Loan, shall be applied to the Note and to such amounts payable by Borrowers under the Loan
Documents and in such order and in such manner as Lender shall elect in Lender’s discretion without
prepayment penalty.

     Section 2.8. Payment of Debt Service, Method and Place of Payment.

          (a) Except as otherwise specifically provided herein, all payments and prepayments under this
Agreement and the Note shall be made to Lender not later than 12:00 noon, California time, on the
date when due, and shall be made in lawful money of the United States of America in federal or
other immediately available funds to an account specified to Borrower by Lender in writing, and any
funds received by Lender after such time, for all purposes hereof, shall be deemed to have been
paid on the next succeeding Business Day.

          (b) All payments made by any Borrower hereunder or by any Borrower under the other Loan
Documents, shall be made irrespective of, and without any deduction for, any set-offs or
counterclaims.

     Section 2.9. Taxes; Funding Losses; Changes in Law.

          (a) All payments made by any Borrower under this Agreement and under the other Loan Documents
shall be made free and clear of, and without deduction or withholding for

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or on account of, any
present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions
or withholdings, and all liabilities with respect thereto, now or hereafter imposed, levied,
collected, withheld or assessed by any Governmental Authority (all such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions, withholdings and liabilities, collectively,
“Applicable Taxes”). If any Borrower shall be required by law to deduct any Applicable
Taxes from or in respect of any sum payable hereunder to Lender, the following shall apply: (i)
such Borrower shall make all such required deductions, (ii) the sum payable to Lender shall be
increased as may be necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 2.9(a)), Lender receives an amount
equal to the sum Lender would have received had no such deductions been made and (iii) such
Borrower shall pay the full amount deducted to the relevant taxing authority or other authority in
accordance with applicable law. Payments made pursuant to this Section 2.9(a) shall be
made within ten (10) Business Days after Lender makes written demand therefor.

          (b) Borrowers shall pay to Lender all Funding Losses incurred from time to time by Lender upon
demand. Lender shall deliver to Borrowers a statement for any such sums to which Lender is
entitled to receive pursuant to this Section 2.9(b), which statement shall be binding and
conclusive absent manifest error.

     Section 2.10. Extension Options. Borrowers have the right to extend the term of the
Loan for two additional terms of twelve (12) months each (each, an “Extension Term”), with
the first additional term (“First Extension Term”) having a maturity date that is the date
that is the twelfth Payment Date following the Initial Maturity Date (“First Extended Maturity
Date”) and the second additional term (“Second Extension Term”) having a maturity date
that is the date that is the twelfth Payment Date following the First Extended Maturity Date
(“Second Extended Maturity Date”). Borrowers shall exercise the right to exercise any
extension option under this Section 2.10 by giving Lender notice of such election at least
thirty (30) days prior to (i) the Initial Maturity Date, in the case of exercising the option to
extend the term of the Loan to the First Extended Maturity Date, and (ii) the First Extended
Maturity Date, in the case of exercising the option to extend the term of the Loan to the Second
Extended Maturity Date. Upon receipt of any such request by Borrowers to extend the term of the
Loan, Lender will notify Borrowers whether or not the term of the Loan will be so extended, which
extension shall be granted upon satisfaction of each of the following conditions in Lender’s sole
discretion:

          (a) No Event of Default exists as of the date of Borrowers’ extension option election notice
to Lender and as of the Initial Maturity Date or the First Extended Maturity Date, as applicable,
and the Borrowers deliver Lender Officer’s Certificates confirming same;

          (b) On or prior to the Initial Maturity Date or the First Extended Maturity Date, as
applicable, Borrowers either (A) extend the term of the Initial Interest Rate Cap Agreement to a
date not earlier than the First Extended Maturity Date or the Second Extended
Maturity Date, as applicable, or (B) obtain an Extension Interest Rate Cap Agreement for the
applicable Extension Term with a LIBOR Rate strike price equal to the Strike Price and collaterally
assigned such Extension Interest Rate Cap Agreement to Lender pursuant to an assignment of interest
rate cap agreement in the same form as the Interest Rate Cap Assignment.

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          If any of the foregoing conditions are not satisfied in Lender’s sole discretion, Lender shall
have no obligation to extend the term of the Loan. Upon Borrowers’ exercise of its rights under
this Section 2.10 and Lender’s extension of the term of the Loan in connection therewith,
the defined term “Maturity Date” shall be deemed to be the First Extended Maturity Date or the
Second Extended Maturity Date, as applicable.

     Section 2.11. Central Cash Management and Reserves.

          (a) Collection Account.

               (i) Each applicable Borrower or Operating Lessee shall open and maintain at a Collection
Account Bank a trust account (a “Collection Account” with respect to each Individual
Property).

               (ii) Each of the Collection Accounts shall be assigned an identification number by the related
Collection Account Bank and shall be opened and maintained in the name “Countrywide Commercial Real
Estate Finance, Inc. as Mortgagee of the applicable Borrower or Operating Lessee.” None of any
Borrower, Operating Lessee or any Manager shall have any right of withdrawal from any Collection
Account. Borrowers shall, on a weekly basis, cause all Rents and all other items of Gross Revenue
(including, without limitation, funds for the credit card payments (“Credit Card
Receivables”) (collectively, “Cash Payments”)) to be deposited directly or transferred
directly into the related Collection Account, except for payments received in cash from hotel
guests and payments received from Persons that maintain open accounts with Borrower, Operating
Lessee or Manager or with whom Borrower, Operating Lessee or Manager does business on an “accounts
receivable” basis with respect to any Individual Property. Without in any way limiting Borrowers’
obligations pursuant to the preceding sentence, Borrowers, Operating Lessee and each Manager shall
deposit or cause the transfer of directly into the relevant Collection Account all Rents, other
items of Gross Revenue and all Credit Card Receivables received by any Borrower, Operating Lessee
and each Manager in violation or contradiction of the preceding sentence and all Cash Payments
within one (1) Business Day after receipt thereof. Funds in the Collection Accounts will be
transferred each Business Day to an account designated by the Borrowers as long as no Cash Trap
Period exists.

               (iii) Any breach of Section 2.11 by any Borrower shall be an Event of Default.

          (b) Cash Collateral Account. Pursuant to each Collection Account Agreement among each
Collection Account Bank, the applicable Borrowers, Operating Lessee and Lender (the “Collection
Account Agreement”) Borrowers will authorize and direct each Collection Account Bank to
transfer on a daily basis all funds deposited in the Collection Account for such Borrower’s
Individual Property in excess of $10,000 to a cash collateral account that is an Eligible Account
established by Lender in Lender’s name (the “Cash Collateral Account”) upon written notice
from Lender and Lender may deliver such notice to the Collection Account Bank only during any Cash
Trap Period. Lender may elect to change the financial institution at which
the Cash Collateral Account shall be maintained. The Cash Collateral Account shall be under
the sole dominion and control of Lender. No Borrower or Operating Lessee shall have any right of
withdrawal in respect to the Cash Collateral Account.

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          (c) Termination of Central Cash Management. The obligations of Borrowers under
Section 2.11 and Section 2.12 to maintain and fund the Collection Accounts and the
Cash Collateral Account shall terminate in their entirety and be of no further force or effect upon
the release of all Mortgages by Lender in accordance with the provisions of this Agreement and the
other Loan Documents.

          (d) Reserves.

               (i) Establishment. On the Closing Date, Lender shall establish the following accounts
for purpose of holding the funds to be deposited by Borrower pursuant to this Section
2.11(d)(i): a “Tax and Insurance Reserve Account”, a “Deferred Maintenance and
Environmental Reserve Account” a “FF&E Reserve Account”. Each Reserve Account shall be
a custodial account established by Lender and shall not constitute a trust fund. At Lender’s
option, funds deposited into a Reserve Account may be commingled with other money held by Lender or
its servicer. Borrower acknowledges and agrees that the Reserve Accounts are subject to the sole
dominion, control and discretion of Lender, its authorized agents or designees, subject to the
terms hereof. Borrower shall not have the right to make any withdrawal from any Reserve Account.

               (ii) Application of Reserves upon Event of Default. Notwithstanding anything to the
contrary contained herein or in any other Loan Document, if an Event of Default has occurred and is
continuing, (i) any amounts deposited into or remaining in any Reserve Account shall be for the
account of Lender and may be withdrawn by Lender to be applied in any manner as Lender may elect in
Lender’s discretion, and (ii) Borrower shall have no further right in respect of the Reserve
Accounts.

               (iii) Tax and Insurance. On the date hereof, Borrower shall deposit with Lender the
following sums: (i) $737,701.65 with respect to Impositions, and (ii) $153,112.04 with respect to
insurance premiums. Such sums shall be held by Lender in the Tax and Insurance Reserve Account.
Beginning on the first Payment Date and on each Payment Date thereafter, Borrower shall deliver to
Lender the amount reasonably estimated by Lender to be one-twelfth (1/12th) of the annual amount of
(A) Impositions, which amount shall initially be $273,138.51, and (B) insurance premiums for
policies required pursuant to this Agreement, which amount shall initially be $126,376.83
(provided, that Lender may re-calculate the foregoing monthly amounts from time to time to assure
that funds are reserved in sufficient amounts to enable the payment of Impositions and insurance
premiums thirty (30) days prior to their respective due dates) (collectively, the “Tax and
Insurance Monthly Installment”). If such amounts for the then current Fiscal Year or payment
period are not ascertainable by Lender at the time a monthly deposit is required to be made, the
Tax and Insurance Monthly Installment shall be Lender’s reasonable estimate based on one-twelfth
(1/12th) of the aggregate Impositions and insurance premiums for the prior Fiscal Year or payment
period, with adjustments reasonably determined by Lender. As soon as Impositions and insurance
premiums are fixed for the then current Fiscal Year or period, the next ensuing Tax and Insurance
Monthly Installment shall be adjusted to reflect any deficiency or surplus in prior Tax and
Insurance Monthly Installments.
Lender shall make payments of Impositions and insurance premiums out of the Tax and Insurance
Reserve Account before the same shall be delinquent to the extent that there are funds

34

 

available in
the Tax and Insurance Reserve Account and Lender has received appropriate documentation to
establish the amount(s) due and the due date(s) as and when provided above.

               (iv) Deferred Maintenance Costs and Remediation Costs. On the date hereof, Borrower
shall deposit $0 into the Deferred Maintenance and Environmental Reserve Account, which amounts
shall be used for payment of costs incurred by Borrower in connection with any deferred maintenance
or Remediation required pursuant to this Agreement.

               (v) FF&E Reserve Account. Funds shall be deposited to the FF&E Reserve Account in
accordance with Section 2.11 to be used in accordance with the Pre-approved Capital
Expenditure Budget. With respect to any excess funds held in the FF&E Reserve Account due to cost
savings on the Pre-approved Capital Expenditure Budget or otherwise, such funds shall be held in
the FF&E Reserve Account and used for capital expenditures at the Individual Properties and
disbursed in accordance with clause (vi) below.

               (vi) Disbursements. Not more frequently than once in any 30-day period, and provided
that no Event of Default has occurred and is continuing, Borrower may request in writing that
Lender release to Borrower funds from one or more Reserve Accounts to the extent funds are
available therein, for payment of costs incurred by Borrower in connection with the expenses for
which such Reserve Account is maintained. Together with each such request, Borrower shall furnish
Lender with copies of bills and other documentation reasonably required by Lender to establish that
such costs are reasonable and are substantially in accordance with market rates, that the work
relating thereto has been completed and that such amounts are then due or have been paid. Lender
shall approve or disapprove such request within ten (10) Business Days after Lender’s receipt of
such request and, if approved, Lender shall release the funds to Borrower or Borrower’s designee
within ten (10) Business Days after Lender’s approval.

               (vii) Interest on Reserve Accounts. Borrower shall not be entitled to any earnings or
interest on funds deposited into the Reserve Accounts. Notwithstanding the foregoing, amounts on
deposit in the Deferred Maintenance and Environmental Reserve Account and the FF&E Reserve Account
shall bear interest at the money-market rates customarily offered by the bank or other financial
institution used by Lender or its servicer for the purposes of holding such accounts
(provided, however, that interest paid or payable with respect to any such account
may not be based on the highest rate of interest payable by Lender or such bank or institution on
deposits and shall not be calculated based on any particular external interest rate or interest
rate index, nor shall any such interest reflect the interest rate utilized by Lender or such bank
or institution to calculate interest payable on deposits held with respect to any particular loan
or borrower or class of loans or borrowers, and Lender shall have no liability with respect to the
amount of interest paid and/or loss of principal). Lender shall be entitled to a servicing fee in
the amount of .50% per annum multiplied by the average daily balance of the applicable account
(which fee Lender is hereby authorized to deduct from such account on a monthly basis). All such
interest paid or other earnings on the sums held in such accounts at the above described rates (if
any), less such servicing fee, shall be income of Borrower, shall, if required by law, be reported
by Borrower on its tax returns as income of Borrower, shall remain in the applicable
account and shall be subject to allocation and distribution in the same manner and under the
same conditions as the principal sum on which said interest or other earnings accrued.

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     Section 2.12. Security Agreement.

          (a) Pledge of Accounts. To secure the full and punctual payment and performance of
all of the Indebtedness, each Borrower hereby sells, assigns, conveys, pledges and transfers to
Lender and grants to Lender a first priority and continuing Lien on and security interest in and to
its Account Collateral.

          (b) Covenants. Each Borrower covenants that (i) all Rents and all other items of
Gross Revenue shall be deposited or transferred into the relevant Collection Account, in accordance
with Section 2.11(a), and (ii) so long as any portion of the Indebtedness is outstanding,
no Borrower shall open (nor permit any Manager or any Person to open) any other account for the
collection of any Rents or any other items of Gross Revenue, other than (A) a replacement
Collection Account approved by Lender in Lender’s discretion, and (B) any account held by Borrower
in the locality where the applicable Individual Property is located for the purposes of the
collection of any Rents or any other items of Gross Revenue prior to the time such Rents or items
of Gross Revenue are deposited in the Collection Account pursuant to the terms of this Agreement.

          (c) Instructions and Agreements. On or before the Closing Date, each applicable
Borrower or Operating Lessee will submit to the Collection Account Bank for each related Individual
Property a Collection Account Agreement to be executed by the Collection Account Bank. On or
before the Closing Date, Borrowers, Operating Lessee and the Cash Collateral Account Bank will
execute and deliver a Cash Collateral Account Agreement in form and substance satisfactory to
Lender in Lender’s discretion (the “Cash Collateral Account Agreement”). Each Borrower and
Operating Lessee agrees that prior to the payment in full of the Indebtedness, the Cash Collateral
Account Agreement shall be irrevocable by any Borrower or Operating Lessee without the prior
written consent of Lender.

          (d) Financing Statements; Further Assurances. Each Borrower hereby authorizes Lender
to file a financing statement or statements in connection with the Account Collateral in the form
required to properly perfect Lender’s security interest in the Account Collateral to the extent
that it may be perfected by such a filing. Each Borrower agrees that at any time and from time to
time, at the expense of Borrowers, such Borrower shall promptly execute and deliver all further
instruments, and take all further action, that Lender may reasonably request, in order to perfect
and protect the pledge, security interest and Lien granted or purported to be granted hereby, or to
enable Lender to exercise and enforce Lender’s rights and remedies hereunder with respect to, the
Collateral. Such financing statements may describe the collateral in the same manner as described
in any security agreement or pledge agreement entered into by the parties in connection herewith or
may contain an indication or description of collateral that describes such property in any other
manner as Lender may determine, in its sole discretion, is necessary, advisable or prudent to
ensure the perfection of the security interest in the collateral granted to Lender in connection
herewith, including, without limitation, describing such property as “all assets” or “all personal
property” of Borrower whether now owned or hereafter acquired. From time to time, at the expense
of Borrower, Borrower shall promptly execute and deliver all further instruments, and take all
further action, that Lender may
reasonably request, in order to continue the perfection and protection of the pledge and
security interest granted or purported to be granted hereby.

36

 

          (e) Transfers and Other Liens. Each Borrower agrees that it will not sell or
otherwise dispose of any of the Account Collateral other than pursuant to the terms hereof and of
the other Loan Documents, or create or permit to exist any Lien upon or with respect to all or any
of the Account Collateral, except for the Liens granted to Lender under this Agreement.

          (f) Lender’s Reasonable Care. Beyond the exercise of reasonable care in the custody
thereof, Lender shall not have any duty as to any Account Collateral or any income thereon in
Lender’s possession or control or in the possession or control of any agents for, or of Lender, or
the preservation of rights against any Person or otherwise with respect thereto. Lender shall be
deemed to have exercised reasonable care in the custody of the Account Collateral in Lender’s
possession if the Account Collateral is accorded treatment substantially equal to that which Lender
accords Lender’s own property, it being understood that Lender shall not be liable or responsible
for (i) any loss or damage to any of the Account Collateral, or for any diminution in value thereof
from a loss of, or delay in Lender’s acknowledging receipt of, any wire transfer from the
Collection Account Bank or (ii) any loss, damage or diminution in value by reason of the act or
omission of Lender, or Lender’s agents, employees or bailees, except for any loss, damage or
diminution in value resulting from the gross negligence, fraud or willful misconduct of Lender, its
agents or employees.

          (g) Lender Appointed Attorney-In-Fact. Each Borrower hereby irrevocably constitutes
and appoints Lender as such Borrower’s true and lawful attorney-in-fact, with full power of
substitution, at any time after the occurrence and during the continuance of an Event of Default to
execute, acknowledge and deliver any instruments and to exercise and enforce every right, power,
remedy, option and privilege of such Borrower with respect to the Account Collateral, and do in the
name, place and stead of such Borrower, all such acts, things and deeds for and on behalf of and in
the name of such Borrower with respect to the Account Collateral, which such Borrower could or
might do or which Lender may deem necessary or desirable to more fully vest in Lender the rights
and remedies provided for herein with respect to the Account Collateral and to accomplish the
purposes of this Agreement. The foregoing powers of attorney are irrevocable and coupled with an
interest.

          (h) Continuing Security Interest; Termination. This Section shall create a continuing
pledge of, Lien on and security interest in the Account Collateral and shall remain in full force
and effect until payment in full of the Indebtedness. Upon payment in full of the Indebtedness,
each applicable Borrower shall be entitled to the return, upon such Borrower’s written request and
at Borrowers’ expense, of such of the Account Collateral as shall not have been sold or otherwise
applied pursuant to the terms hereof, and Lender shall execute such instruments and documents as
may be reasonably requested by such Borrower in writing to evidence such termination and the
release of the pledge and Lien hereof, provided, however, that such Borrower shall
pay on demand all of Lender’s expenses in connection therewith.

     Section 2.13. Secondary Market Transactions.

          (a) Each Borrower hereby acknowledges that Lender may in one or more transactions (i) sell or
securitize the Loan or portions thereof in one or more transactions through the issuance of
securities, which securities may be rated by one or more of the Rating Agencies,
(ii) sell or otherwise transfer the Loan or any portion thereof one or more times, (iii) sell

37

 

participation interests (including without limitation, senior and subordinate participation
interests) in the Loan one or more times, (iv) re-securitize the securities issued in connection
with any securitization, or (v) further divide the Loan into more separate notes or components
and/or reallocate a portion of the Loan to a mezzanine loan to be secured by direct and/or indirect
equity interests in Borrowers or change the principal balances (but not increase the aggregate
principal balance) or interest rates of the Note (including, without limitation, senior and
subordinate notes or components) (the transactions referred to in clauses (i) through (v), each a
“Secondary Market Transaction” and collectively “Secondary Market Transactions”).

          (b) With respect to any Secondary Market Transaction described in Section 2.13(a)(v)
above, such notes or note components and mezzanine loans may be assigned different principal
amounts and interest rates, so long as, the aggregate amount of such notes or note components and
mezzanine loans at such time equals the Loan Amount, and at such time the weighted average of the
relevant interest rates equals the LIBOR Interest Rate for the Note; provided, that after an Event
of Default each Borrower recognizes that, in the case of prepayments, the weighted average interest
rate of the Loan may increase because Lender shall have the right to apply principal payments to
one or more notes or components with lower rates of interest before applying principal payments to
one or more notes or components with higher rates of interest and provided, further, that the
aggregate principal balance of the Note shall not change. Lender shall have the same rights to
sell or otherwise transfer, participate or securitize one or more of the divided, amended, modified
or otherwise changed notes or components, individually or collectively, as Lender has with respect
to the Loan. At Lender’s sole cost, Borrower agrees to (A) modify its organizational structure to
create one or more new Single-Purpose Entities to be the mezzanine borrower(s) (and to be otherwise
satisfactory to Lender) and cause the same and any other owners of direct or indirect Equity
Interests in Borrower to enter into such agreements deemed reasonably necessary by Lender to
evidence and secure such mezzanine loan, and (B) execute and deliver to Lender such amendments to
the Loan Documents, title insurance endorsements, legal opinions and other customary loan
documentation as Lender may reasonably require in connection therewith).

          (c) Each Borrower and Operating Lessee agrees that it shall cooperate with Lender and use such
Borrower’s commercially reasonably efforts to facilitate the consummation of each Secondary Market
Transaction including, without limitation, by: (i) amending or causing the amendment of this
Agreement and the other Loan Documents, and executing such additional documents, instruments and
agreements including amendments to such Borrower’s organizational documents and preparing financial
statements as requested by the Rating Agencies to conform the terms of the Loan to the terms of
similar loans underlying completed or pending secondary market transactions having or seeking
ratings similar to those then being sought in connection with the relevant Secondary Market
Transaction; (ii) promptly and reasonably providing such information (including, without
limitation, financial information) as may be requested in connection with the preparation of a
private placement memorandum, prospectus or a registration statement required to privately place or
publicly distribute the securities in a manner which does not conflict with federal or state
securities laws; (iii) providing in connection with each of (A) a preliminary and a final private
placement memorandum or other offering documents or (B) a preliminary and final prospectus, as
applicable, an indemnification certificate (x) certifying that such Borrower has carefully examined
such private placement memorandum, prospectus, registration statement or other offering document,
as applicable,

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including, without limitation, the sections entitled “Special Considerations,” “Description of
the Mortgage Loan,” “The Underlying Mortgaged Property,” “The Manager,” “Borrower” and “Certain
Legal Aspects of the Mortgage Loan,” and such sections (and any other sections requested) insofar
as they relate to a Borrower, its Affiliates, the Loan or any Individual Property does not contain
any untrue statement of a material fact or omit to state a material fact necessary in order to make
the statements made, in the light of the circumstances under which they were made, not misleading,
and (y) indemnifying (i) Lender and each of its affiliates and their respective successors and
assigns (including their respective officers, directors, partners, employees, attorneys,
accountants, professionals and agents and each other person, if any, controlling Lender or any of
its affiliates within the meaning of either Section 15 of the Securities Act of 1933, as amended
(the “Securities Act”)), or Section 20 of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) (each, including Lender, an “Indemnified Party”) and the (ii)
party that has filed the registration statement relating to the Secondary Market Transaction (the
“Registration Statement”), each of its directors and officers who have signed the
Registration Statement and each Person that controls such Party within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act (collective, the “Underwriter Group”),
for any losses, claims, damages, costs, expenses or liabilities (including, without limitation, all
liabilities under all applicable federal and state securities laws) (collectively, the
“Liabilities”) to which any of them may become subject (a) insofar as the Liabilities arise
out of or are based upon any untrue statement or alleged untrue statement of any material fact
relating to any Borrower, its Affiliates, the Loan, any Individual Property, any Manager, and the
Operating Lessee contained in such sections or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated in such sections or
necessary in order to make the statements in such sections, in light of the circumstances under
which they were made, not misleading or (b) as a result of any untrue statement of material fact in
any of the financial statements of any Borrower incorporated into any placement memorandum,
prospectus, registration statement or other document connected with the issuance of securities or
the failure to include in such financial statements or in any placement memorandum, prospectus,
registration statement or other document connected with the issuance of securities any material
fact relating to any Borrower, its Affiliates, any Individual Property, the Loan, any Manager, and
the Operating Lessee necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading; and (z) agreeing to reimburse the
Indemnified Party and the Underwriter Group for any legal or other expenses reasonably incurred by
the Indemnified Party and the Underwriter Group in connection with investigating or defending the
Liabilities; and notwithstanding anything contained in this clause (iii) to the contrary, Borrower
shall not be required to indemnify Lender for any losses relating to projections made in good faith
by Borrower or untrue statements or omissions which such Borrower identified to Lender in writing
at the time of such Borrower’s examination of such memorandum or prospectus, as applicable, and
statements or misstatements made in Borrower’s good faith reliance upon the reports of third
parties that do not, to the best of Borrower’s knowledge, contain any untrue statement or
misstatement of a material fact necessary in order to make the statements made, in light of the
circumstances under which they were made, not misleading; (iv) causing to be rendered such
customary opinion letters as shall be requested by the Rating Agencies for other secondary market
or transactions having or seeking ratings comparable to that then being sought for the relevant
Secondary Market Transaction; (v) making such representations, warranties and covenants, as may be
reasonably requested by the

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Rating Agencies and comparable to those required in other secondary
market transactions having or seeking the same rating as is then being sought for the Secondary
Market Transaction; (vi)
providing such information regarding the Collateral as may be reasonably requested by the
Rating Agencies or otherwise required in connection with the formation of a REMIC; and (vii)
providing any other reasonable information and materials required in the Secondary Market
Transaction.

          (d) Each Borrower agrees to participate and cooperate in any meetings with the Rating Agencies
or Investors, and providing any other information and materials reasonably required in the
Secondary Market Transaction to make the certificates offered in such Secondary Market Transaction
saleable in the secondary market and to obtain ratings from two or more rating agencies.

          (e) Each Borrower acknowledges and agrees that the Lender may, at any time on or after the
Closing Date, assign its duties, rights or obligations hereunder or under any Loan Document in
whole, or in part, to a servicer and/or a trustee in Lender’s discretion. Nothing herein shall in
any way limit Lender’s right to sell all or a portion of the Loan in a transaction which is not a
Secondary Market Transaction.

          (f) Lender shall reimburse the Borrowers for all reasonable out-of-pocket costs incurred by
the Borrowers in connection with complying with their obligations set forth in this Section
2.13; provided, however, that the Borrowers shall remain responsible for all of Borrower’s
reasonable and customary legal and accounting fees not to exceed $10,000 and all indemnity and
related obligations incurred by the Borrowers or its Affiliates.

          (g) If Lender determines at any time to participate in a Secondary Market Transaction, Lender
may forward to each purchaser, transferee, assignee, servicer, participant or investor in such
securities, any Rating Agency rating such securities, any organization maintaining databases on the
underwriting and performance of commercial loans, trustee, counsel, accountant, and each
prospective Investor, all documents and information which Lender now has or may hereafter acquire
relating to the Loan, Borrower, any direct or indirect equity owner of Borrowers, any guarantor,
any indemnitor and the Individual Properties, which shall have been furnished by Borrowers, any
Affiliate of Borrowers, any guarantor, any indemnitor, or any party to any Loan Document, or
otherwise furnished in connection with the Loan, as Lender in its discretion determines necessary
or desirable.

     Section 2.14. Interest Rate Cap Agreement.

          (a) On the Closing Date, Borrowers shall obtain, and thereafter maintain in effect, the
Initial Interest Rate Cap Agreement, which shall have a term which ends on the Initial Maturity
Date and have a notional amount equal to the Loan Amount. The Initial Interest Rate Cap Agreement
shall have a LIBOR strike rate equal to or less than the Strike Rate.

          (b) If Borrowers exercise any option to extend the term of the Loan pursuant to Section
2.10, then on or prior to the commencement of the applicable Extension Term, Borrowers shall
obtain an Extension Interest Rate Cap Agreement having (x) a term which ends

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on the extended
Maturity Date occurs, (y) a notional amount at least equal to the Loan Amount, and (z) a LIBOR
strike rate equal to or less than the Strike Rate.

          (c) Each Borrower shall collaterally assign to Lender pursuant to the Rate Cap Pledge and
Security Agreement all of its right, title and interest in any and all payments under
each Interest Rate Cap Agreement and shall deliver to Lender an executed counterpart of such
Rate Cap Pledge and Security Agreement and obtain the consent of the Acceptable Counterparty to
such collateral assignment (as evidenced by the Acceptable Counterparty’s execution of a separate
acknowledgment to such Rate Cap Pledge and Security Agreement).

          (d) Each Borrower shall comply with all of its obligations under the terms and provisions of
each Interest Rate Cap Agreement. All amounts paid under an Interest Rate Cap Agreement shall be
deposited directly into the Cash Collateral Account. Each Borrower shall take all actions
reasonably requested by Lender to enforce Lender’s rights under the Rate Cap Pledge and Security
Agreement in the event of a default by the counterparty thereunder and shall not waive, amend or
otherwise modify any of its rights thereunder without Lender’s reasonable consent (which consent
may be conditioned on receipt of a Rating Agency Confirmation).

     Section 2.15. Partial Release. Provided that no Event of Default has occurred and is
continuing under any of the Loan Documents, (i) at any time after the Closing Date, the applicable
Borrowers may obtain a release of Sheraton Iowa City and/or Marriott Trumbull (in connection with
the sale of such hotel(s) to an unaffiliated third party in an arm’s-length transaction) and (ii)
at any time after June 11, 2008, each Borrower, may obtain the release of any other Individual
Property (each, a “Partial Release”) from the lien of the applicable Mortgage (and other
Loan Documents ) and the release of such Borrower’s and Operating Lessee’s ongoing obligations
under the Note and other Loan Documents with respect to such Individual Property (other than those
expressly stated to survive), so long as all of the following conditions shall have been satisfied:

          (a) the applicable Borrower shall have provided Lender with no less than thirty (30) days, but
no more than ninety (90) days, prior written notice of its request to obtain a release of the
applicable Individual Property;

          (b) Lender shall have received a prepayment of the Loan in an amount equal to (a) with respect
to Sheraton Iowa City and Marriott Trumbull, the greater of (x) the Allocated Loan Amount for such
Individual Property, and (y) 81% of the gross sales proceeds for such Individual Property, as
determined by Lender, and (b) with respect to any Individual Property other than Sheraton Iowa City
and Marriott Trumbull, the greater of (x) 115% of the Allocated Loan Amount for such Individual
Property, (y) 85% of the gross sales price for such Individual Property, as determined by Lender,
in the event such Individual Property is being sold to an unaffiliated third party in an
arm’s-length transaction, and (z) such other amount, as determined by Lender, which after giving
effect to such prepayment results in a remaining unpaid principal balance of the Loan supporting a
minimum Debt Yield at least equal to 6.5% from June 12, 2008 through and including December 11,
2008, 7.0% in Year 3 of the Loan, 7.5% in Year 4 of the Loan and 8.0% in Year 5 of the Loan (either
(a) or (b), as applicable, the “Release Price”), which prepayment shall be accompanied by
(i) all accrued and unpaid interest allocable to the portion of the Principal Indebtedness being
prepaid as of the date of such prepayment, (ii) if such

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prepayment is not made on a Payment Date,
the interest which would have accrued thereon through and including the last day of the Interest
Accrual Period in which such prepayment occurs, and (iii) any and all other sums due under the Loan
Documents in connection with a partial prepayment of the Loan;

          (c) the applicable Borrower shall have submitted to Lender, not less than ten (10) Business
Days prior to the date of such Partial Release, all necessary and appropriate documentation
concerning the release of the lien of the applicable Mortgage (and other Loan Documents) for such
Individual Property and the applicable Borrower and Operating Lessee, for execution by Lender.
Such release documentation shall be in a form appropriate in the State in which such Individual
Property is located and shall contain standard provisions, if any, protecting the rights of Lender.
In addition, the applicable Borrower shall provide any and all other documentation (1) that prior
to the date that all or any portion of the Loan is included in a REMIC, is reasonably acceptable to
Lender, and (2) that after the date that all or any portion of the Loan is included in a REMIC,
would be reasonably acceptable to a prudent lender originating commercial mortgage loans for
securitization similar to the Loan in the State where the applicable Individual Property is
located, to be delivered by such Borrower in connection with such Partial Release, together with an
officer’s certificate certifying that (i) such documentation is in compliance with all Legal
Requirements in all material respects, and (ii) the Partial Release will not impair or otherwise
adversely affect the lien, security interest and other rights of Lender under the Loan Documents
(except with regard to the release of the applicable Borrower, Operating Lessee and the lien on the
applicable Individual Property); provided, however, that Rating Agency Confirmation shall not be
required;

          (d) the Borrowers shall execute (i) amendments to the Loan Documents to the extent necessary
(as determined (1) prior to the date that all or any portion of the Loan is included in a REMIC, by
Lender, and (2) after the date that all or any portion of the Loan is included in a REMIC, as would
be reasonably required by a prudent lender originating commercial mortgage loans for securitization
similar to the Loan in the State where the applicable Individual Property is located) and shall
agree to corresponding adjustments of the reserves and escrow accounts with respect to the
remaining Individual Properties as would be reasonably acceptable to a prudent lender originating
commercial mortgage loans for securitization similar to the Loan in the State where the applicable
Individual Property is located (with all excess reserve and escrow amounts applicable to the
Individual Properties subject to such Partial Release to be released to the applicable Borrower
promptly upon the consummation of such Partial Release) and the amount of Additional Advances as
set forth on the Pre-approved Capital Expenditure Budget with respect to an Individual Property
subject to a Partial Release shall be reduced in accordance with Section 2.1(d), and (ii)
amendments to the Operating Lease or any other document related to the Release Property to the
extent necessary (as would be reasonably acceptable to a prudent lender originating commercial
mortgage loans for securitization similar to the Loan in the State where the applicable Individual
Property is located) to ensure that (y) such Operating Lease or other document shall not continue
to govern or relate to the Individual Property that is to be released and any other Individual
Property which shall act as collateral for the Loan from and after the date of the Partial Release
and (z) the Operating Lessee will not be the tenant of such Individual Property following the
release of such Individual Property from the Lien of the related Mortgage; and

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          (e) Lender shall have received reimbursement in full of all of Lender’s fees, costs and
expenses, including without limitation, reasonable legal counsel fees and disbursements incurred in
connection with the Partial Release, and the review and approval of all documents and information
required to be delivered in connection therewith.

     Section 2.16. Substitution. Subject to the terms and conditions set forth in this
Section 2.16, Borrowers may, from time to time, replace Individual Properties with
Qualified Substitute Properties (a “Property Substitution”), provided, in the case of each
Property Substitution, the following conditions are met:

          (a) no Event of Default shall exist on such date either before or after the Property
Substitution;

          (b) Borrower shall have given Lender at least sixty (60) days’ prior written notice of any
Property Substitution;

          (c) the Loan-to-Value Ratio after giving effect to the proposed Property Substitution for the
aggregate of all Individual Properties shall be equal to or greater than the Loan-to-Value Ratio
for the aggregate of all Individual Properties immediately prior to the Property Substitution;

          (d) after giving effect to the proposed Property Substitution, the Debt Service Coverage Ratio
for the aggregate of all Individual Properties shall be no less than the Debt Service Coverage
Ratio immediately prior to the Property Substitution;

          (e) each of the representations and warranties contained in this Agreement shall be true and
correct in all material respects with respect to Borrowers (including the applicable Borrower
acquiring the applicable Qualified Substitute Property), as well as the Qualified Substitute
Property, on and as of the date of the Property Substitution (and Borrower’s acquisition of such
Qualified Substitute Property shall be deemed to constitute its representation to such effect);

          (f) (i) Borrowers shall have executed, acknowledged and delivered to Lender, with respect to
each Qualified Substitute Property, a Mortgage and an Assignment of Leases and Rents, and such
other customary documents and agreements as are generally required by reasonable commercial
mortgage lenders, and (ii) Guarantor and Borrowers shall have executed such additional customary
Loan Documents and such modifications to and reaffirmations of the existing Loan Documents to which
it is a party as a reasonable commercial mortgage lender would customarily require;

          (g) each Mortgage shall secure the entire Indebtedness; provided, however, that in the event
that the jurisdiction in which the applicable Qualified Substitute Property is located imposes a
mortgage recording, intangibles or similar tax and does not permit the allocation of indebtedness
for the purpose of determining the amount of such tax payable, the principal amount secured by such
Mortgage shall be equal to 125% of the Allocated Loan Amount of the Individual Property replaced by
the Qualified Substitute Property as of immediately prior to such Property Substitution;

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          (h) Lender shall have received the following:

               (i) copies of all Leases in effect with respect to the Qualified Substitute Property (together
with such estoppels and subordination, non-disturbance and attornment agreements as a reasonable
commercial mortgage lender would customarily require);

               (ii) copies of UCC and other credit and public records search reports requested by Lender
conducted by a nationally recognized search firm, conducted in the state and county where the
Qualified Substitute Property is located and in the state where Borrower is organized or
incorporated, evidencing that (A) no liens (other than as permitted hereunder), judgments, tax
liens or tax judgments have been filed against Borrowers (or the owner of the Qualified Substitute
Property if such Person is not a current Borrower), (B) no petition for bankruptcy, reorganization
or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, has been
filed by or against, consented to, or acquiesced in by Borrowers (or the owner of the Qualified
Substitute Property if such Person is not a current Borrower) or any of such Person’s partners,
members or shareholders, as applicable, and (C) there is no litigation pending against Borrowers
(or the owner of the Qualified Substitute Property if such Person is not a current Borrower);

               (iii) certificates of insurance demonstrating insurance coverage in respect of the Qualified
Substitute Property of types, in amounts, with insurers and otherwise in compliance with the
requirements set forth herein;

               (iv) an ALTA mortgagee policy of title insurance for the Qualified Substitute Property issued
by a title company substantially similar to the title company that issued Lender’s initial title
insurance policy with respect to the Property (the “Closing Title Policy”) insuring the
first priority lien in favor of Lender created by the Mortgage, which title policy shall (A) be in
an amount equal to the insured amount under the Closing Title Policy, (B) contain all endorsements
attached to the Closing Title Policy to the extent available and (C) not contain any title
exceptions other than Permitted Encumbrances and such other exceptions reasonably acceptable to
Lender that do not materially and adversely affect (i) the ability of Borrower to pay the
Indebtedness in a timely manner or (ii) the use of the Qualified Substitute Property for the use
currently being made thereof or the value of the Qualified Substitute Property;

               (v) an ALTA survey of the Qualified Substitute Property prepared by a registered independent
surveyor and containing a surveyor’s certification substantially similar in form and substance to
the surveyor’s certification attached to the survey received by Lender with respect to the Property
in connection with the closing of the Loan;

               (vi) evidence reasonably satisfactory to Lender that the Qualified Substitute Property is in
compliance in all material respects with all applicable zoning requirements (including, where
obtainable, zoning endorsements and letters from the applicable zoning authorities);

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               (vii) copies of the material Permits for the use and operation of the Qualified Substitute
Property and the certificate of occupancy, if required and obtainable, for the Qualified Substitute
Property;

               (viii) copies of all contracts and agreements relating to the Qualified Substitute Property;
entered into or assumed by Borrower in connection with the Property Substitution or to which
Borrower will be subject after the Property Substitution;

               (ix) an environmental report addressed to Lender and its successors and assigns reasonably
satisfactory to Lender performed by a reputable environmental Engineer
disclosing that there are no Hazardous Substances or underground storage tanks in violation of
Environmental Laws located in, on or under the Qualified Substitute Property and that the Qualified
Substitute Property is in compliance with all Environmental Laws;

               (x) an engineering report addressed to Lender and its successors and assigns reasonably
satisfactory to Lender performed by a reputable independent structural engineer evidencing that the
Qualified Substitute Property is free of material structural defects and that all building systems
contained therein are in good working order in all material respects subject to ordinary wear and
tear;

               (xi) (A) operating statements for the Qualified Substitute Property for the prior three years,
prepared by an independent certified public accountant of recognized national standing, to the
extent such statements can be obtained without undue burden or cost, (B) current results from
operations and (C) any informal accounting requested by Lender reasonably necessary for Lender to
verify the accuracy of any other information required to be provided by or on behalf of Borrower in
connection with effecting the Property Substitution;

               (xii) such other reasonable and customary certificates, opinions, documents and instruments
relating to the Loan necessary to effect the Property Substitution;

               (xiii) the Management Agreement, the Manager’s Subordination, the Franchise Agreement and the
Franchisor’s Subordination, each in form and substance reasonably satisfactory to Lender;

          (i) Lender shall have received (i) such customary opinions of counsel as a reasonable
commercial mortgage lender would typically require, in form and content acceptable to a reasonable
commercial mortgage lender (including a new non-consolidation opinion if one was required to be
delivered in connection with the Loan and applicable REMIC opinions with customary qualifications
and assumptions); and (ii) confirmation by each of the applicable Rating Agencies that the Property
Substitution will not result in any qualification, withdrawal or downgrading of any existing
ratings of securities created in any applicable Secondary Market Transaction;

          (j) no Individual Property may be replaced with more than one Qualified Substitute Property;

          (k) no Property Substitution may occur within twelve (12) months following the Closing Date;

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          (l) no more than an aggregate of 50% of the Loan Amount may be subject to Property
Substitutions during the term of the Loan;

          (m) If the owner of the Substitute Property is not a current Borrower then such owner must be
a Single-Purpose Entity that assumes the Loan in connection with the Property Substitution and that
is wholly owned (directly or indirectly) by Ashford Hospitality Limited Partnership, a Delaware
limited partnership;

          (n) Borrowers shall have paid or reimbursed Lender for all costs and expenses actually
incurred by Lender in connection with the foregoing (including the reasonable fees and expenses of
legal counsel and all fees and expenses of the Rating Agencies, if any).

     Section 2.17. Permitted Mezzanine Indebtedness. Notwithstanding anything the contrary
contained in this Agreement, a “Permitted Transfer” shall also include Transfers in the nature of a
pledge by a Mezzanine Borrower (as defined below) of its direct and/or indirect Equity Interest in
Borrower and SPE Equity Owner (but not of any direct interest in the Individual Property) to a
Permitted Mezzanine Lender as security for a loan to such Mezzanine Borrower (a “Mezzanine
Loan”) provided that the following terms and conditions are satisfied:

          (a) Not less than twelve (12) months shall have elapsed since the Closing Date;

          (b) no Event of Default shall then exist;

          (c) Lender shall have received at least thirty (30) and no more than sixty (60) days’ prior
written notice of the proposed Mezzanine Loan;

          (d) the aggregate amounts of the Principal Indebtedness, the Unfunded Future Advances and the
Mezzanine Loan (as of the effective date of the Mezzanine Loan) shall not exceed eighty-five
percent (85%) of the fair market value of the Individual Properties as determined by an Appraisal
dated not more than sixty (60) days prior to the effective date of the Mezzanine Loan and otherwise
acceptable to Lender;

          (e) the Aggregate Debt Service Coverage Ratio is at least 1.05:1;

          (f) Borrower shall not be obligated to repay the Mezzanine Loan nor incur any obligation or
liability to the Permitted Mezzanine Lender or any other Person with respect to the Mezzanine Loan,
and the terms and conditions of the Mezzanine Loan, the collateral pledged as security therefor,
and the documents evidencing the Mezzanine Loan, shall be reasonably satisfactory to Lender;

          (g) a new Single-Purpose Entity shall have been formed that will directly or indirectly own
100% of the Equity Interests in Borrower and SPE Equity Owner (the “Mezzanine Borrower”), the
organizational documents of Borrower, such Mezzanine Borrower, and their respective constituent
owners shall be reasonably satisfactory to Lender, and Borrower and such Mezzanine Borrower shall
otherwise satisfy all applicable Rating Agency criteria for single-purpose entities, bankruptcy
remoteness, and mezzanine borrowers;

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          (h) the Permitted Mezzanine Lender shall have executed and delivered to Lender an
intercreditor agreement acceptable to Lender in its sole and absolute discretion;

          (i) Borrower, SPE Equity Owner, and Guarantor shall have executed such additional Loan
Documents and such amendments to and reaffirmations of the existing Loan Documents as Lender may
reasonably require, including entering into a new cash management arrangement with Lender (or
modifying any existing cash management requirement) to provide for, among other things, the payment
of Lender-approved operating expenses and capital expenses prior to the payment of debt service on
the Mezzanine Loan;

          (j) Lender shall have received (i) customary opinions of counsel to Borrower as Lender may
reasonably require, in form and content reasonably acceptable to Lender (including a new
non-consolidation opinion if one was required to be delivered in connection with the Loan) with
customary qualifications and assumptions; and (ii) confirmation by each of the applicable Rating
Agencies that the incurrence of the Mezzanine Loan will not result in any qualification, withdrawal
or downgrading of any existing ratings of securities created in any applicable Secondary Market
Transaction;

          (k) Borrower shall have paid or reimbursed Lender for all of its costs and expenses (including
reasonable attorneys’ fees and disbursements) incurred in connection with the foregoing; and

          (l) if the Mezzanine Loan will be a floating rate loan, there shall be an interest rate cap
agreement or similar agreement with respect to such Mezzanine Loan, in form and substance
acceptable to Lender.

          Notwithstanding anything herein to the contrary, none of Countrywide, Lender or their
respective Affiliates shall have any obligation to provide a Mezzanine Loan or any other financing.

     Section 2.18. Assumption. Borrowers shall have the right at any time to Transfer all
of the Individual Properties in one transaction to another party (the “Transferee”) and
such Transferee may assume the Loan, provided no Event of Default exists or would result therefrom
and the following conditions are met:

          (a) Borrowers shall pay to Lender a transfer fee in the amount of 0.5% of the sum of the
Principal Indebtedness and Unfunded Future Advances;

          (b) the identity, experience, financial condition, creditworthiness, single purpose nature and
bankruptcy remoteness of the Transferee, and the replacement guarantors and indemnitors shall be
reasonably satisfactory to Lender;

          (c) Borrowers, Transferee, Guarantor and the replacement guarantors and indemnitors shall
execute and deliver any and all documentation as may be reasonably required by Lender or required
by the Rating Agencies, as the case may be, in form and substance reasonably satisfactory to Lender
or satisfactory to the Rating Agencies, as the case may be, in Lender’s reasonable discretion or
the Rating Agencies’ discretion, as applicable (including assumption documents);

47

 

          (d) counsel to Transferee and the replacement guarantors and indemnitors shall deliver to
Lender and the Rating Agencies customary opinion letters relating to such transfer (including tax
and bankruptcy opinions) in form and substance reasonably satisfactory to Lender and satisfactory
to the Rating Agencies in Lender’s reasonable discretion and the Rating Agencies’ discretion with
customary qualifications and assumptions;

          (e) if the Individual Property is transferred, Borrower shall deliver (or cause to be
delivered) to Lender, an endorsement to Lender’s title insurance policy relating to the change in
the identity of the vestee and the execution and delivery of the transfer documentation in form and
substance reasonably acceptable to Lender;

          (f) Borrower pays all reasonable expenses incurred by Lender in connection with such Transfer,
including Lender’s reasonable attorneys fees and expenses, all recording fees, and all fees payable
to the applicable title company for the delivery to Lender of the endorsement referred to in clause
(e) above;

          (g) the Loan-to-Value Ratio shall not exceed 80%; and

          (h) Lender shall have received a Rating Agency Confirmation with respect to such Transfer.

ARTICLE 3

CONDITIONS PRECEDENT

     Section 3.1. Conditions Precedent to the Making of the Loan.

          (a) As a condition precedent to the making of the Loan, each Borrower shall have satisfied the
following conditions (unless waived by Lender in accordance with Section 8.4) on or before
the Closing Date:

               (i) Loan Documents.

                    (1) Loan Agreement. Each Borrower shall have executed and delivered this Agreement to
Lender.

                    (2) Note. Each Borrower shall have executed and delivered to Lender the Note.

                    (3) Mortgage. Each applicable Borrower shall have executed and delivered to Lender
the Mortgages and the Mortgages shall have been irrevocably delivered to an authorized title agent
for the Title Insurer for recordation in the appropriate filing offices in the jurisdiction in
which the applicable Individual Properties are located.

                    (4) Supplemental Mortgage Affidavits. The Liens to be created by each Mortgage are
intended to encumber the applicable Individual Property described therein to the full extent of
each Borrower’s obligations under the Loan Documents. As of the

48

 

Closing Date, each Borrower shall
have paid all state, county and municipal recording and all other taxes imposed upon the execution
and recordation of the Mortgages.

                    (5) Assignment of Leases. Each applicable Borrower and each applicable Operating
Lessee shall have executed and delivered to Lender the Assignments of Leases, and the Assignments
of Leases shall have been irrevocably delivered to an authorized title agent for the Title Insurer
for such recordation in the appropriate filing offices in the jurisdiction in which the applicable
Individual Property is located.

                    (6) Assignment of Agreements. Each applicable Borrower shall have executed and
delivered to Lender the Assignments of Agreements, and the Assignments of Agreements shall, to the
extent prudent pursuant to local practice, have been irrevocably delivered to an authorized title
agent for the Title Insurer for such recordation in the
appropriate filing offices in the jurisdiction in which the applicable Individual Property is
located.

                    (7) Financing Statements. Each applicable Borrower and its partners or members (and
their shareholders), as applicable, shall have authorized Lender to file all financing statements
required by Lender and such financing statements shall have been irrevocably delivered to an
authorized title agent for the Title Insurer for such recordation in the appropriate filing offices
in each of the appropriate jurisdictions.

                    (8) Manager’s Subordination. Each Manager and each applicable Borrower shall have
executed and delivered to Lender the Manager’s Subordinations.

                    (9) Franchisor Subordinations. The Borrowers shall have delivered to Lender (1)
certified copies of each Franchise Agreement and (2) the Franchisor’s Subordinations.

                    (10) Subordination, Attornment and Security Agreement. Operating Lessee and each
applicable Borrower shall have executed and delivered to Lender (1) a certified copy of each
Operating Lease, and (2) each applicable Subordination, Attornment and Security Agreement.

                    (11) REA Estoppels. Borrower shall have delivered to Lender an executed REA estoppel
letter, which shall be in form and substance satisfactory to Lender, from each party to any REA
required by Lender with respect to any Individual Property.

                    (12) Environmental Guaranty. Each Borrower shall have executed and delivered to
Lender the Environmental Guaranty.

                    (13) Collection Account Agreement. Each applicable Borrower, the Operating Lessee,
each Manager and the relevant Collection Account Banks shall have executed and delivered the
Collection Account Agreements and shall have delivered an executed copy of such Agreement to
Lender.

                    (14) Cash Collateral Account Agreement. Each Borrower, the Operating Lessee, each
Manager and Cash Collateral Account Bank shall have executed and

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delivered the Cash Collateral
Account Agreement and shall have delivered an executed copy of such Cash Collateral Account
Agreement to Lender.

               (ii) Opinions of Counsel. Lender shall have received from counsel satisfactory to
Lender, legal opinions in form and substance satisfactory to Lender in Lender’s discretion
(including, without limitation, a bankruptcy opinion). All such legal opinions will be addressed
to Lender and the Rating Agencies, dated as of the Closing Date, and in form and substance
satisfactory to Lender, the Rating Agencies and their counsel. Each applicable Borrower hereby
instructs any of the foregoing counsel, to the extent that such counsel represents such Borrower,
to deliver to Lender such opinions addressed to Lender and the Rating Agencies.

               (iii) Secretary’s Certificates and SPE Equity Owner’s Certificate. Lender shall have
received a Secretary’s Certificate acceptable to Lender with respect to each
applicable Borrower’s managing equity owner and each Remington Manager and Interstate Manager
and each applicable SPE Equity Owner’s Certificate with respect to the applicable Borrower.

               (iv) Insurance. Lender shall have received certificates of insurance demonstrating
insurance coverage in respect of each Individual Property as required by and in accordance with the
Mortgages.

               (v) Lien Search Reports. Lender shall have received satisfactory reports of UCC
(collectively, the “UCC Searches”), federal tax lien, bankruptcy, state tax lien, judgment
and pending litigation searches conducted by a search firm reasonably acceptable to Lender. Such
searches shall have been received in relation to each Borrower and each equity owner in each
Borrower, the Operating Lessee and each Manager. Such searches shall have been conducted in each
of the locations designated by Lender in Lender’s reasonable discretion and shall have been dated
not more than fifteen (15) days prior to the Closing Date.

               (vi) Title Insurance Policy. Lender shall have received (i) a Title Insurance Policy
for each Individual Property or a marked-up commitment (in form and substance satisfactory to
Lender) from Title Insurer to issue a Title Insurance Policy for each Individual Property and (ii)
a fully executed copy of the Title Instruction Letter from the Title Insurer.

               (vii) Environmental Matters. Lender shall have received an Environmental Report with
respect to each Individual Property.

               (viii) Consents, Licenses, Approvals. Lender shall have received copies of all
consents, licenses and approvals, if any, required in connection with the execution, delivery and
performance by each Borrower under, and the validity and enforceability of, the Loan Documents, and
such consents, licenses and approvals shall be in full force and effect.

               (ix) Additional Matters. Lender shall have received such other Permits, certificates
(including certificates of occupancy reflecting the permitted uses of the Individual Properties as
of the Closing Date), opinions, documents and instruments (including, without limitation, written
proof from the appropriate Governmental Authority regarding the

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zoning of each Individual Property
in form and substance satisfactory to Lender in Lender’s discretion) relating to the Loan as may be
required by Lender and all other documents and all legal matters in connection with the Loan shall
be satisfactory in form and substance to Lender. Each Borrower shall provide Lender with
information reasonably satisfactory to Lender regarding Impositions and insurance premiums on or
before the Closing Date.

               (x) Representations and Warranties. The representations and warranties herein and in
the other Loan Documents shall be true and correct in all material respects.

               (xi) No Injunction. No law or regulation shall have been adopted, no order, judgment
or decree of any Governmental Authority shall have been issued or entered, and no litigation shall
be pending or threatened, which in the judgment of Lender would have a Material Adverse Effect.

               (xii) Survey. Lender shall have received a Survey for each Individual Property.

               (xiii) Engineering Report. Lender shall have received an Engineering Report for each
Individual Property.

               (xiv) Appraisal. Lender shall have received an Appraisal satisfactory to Lender with
respect to each Individual Property which shall be (i) prepared by an Appraiser approved by Lender
in Lender’s reasonable discretion, (ii) prepared based on a scope of work determined by Lender in
Lender’s reasonable discretion and (iii) in form and content acceptable to Lender in Lender’s
reasonable discretion.

               (xv) Security Deposits. Borrowers shall be in compliance with all applicable Legal
Requirements relating to all security deposits held for any Leases.

               (xvi) Service Contracts and Permits. Borrowers shall have delivered to Lender true,
correct and complete copies of all material contracts and Permits relating to each Individual
Property.

               (xvii) Site Inspection. Unless waived by Lender in accordance with Section
8.4, Lender shall have performed, or caused to be performed on its behalf, an on-site due
diligence review of each Individual Property to be acquired or refinanced with the Loan, the
results of which shall be satisfactory to Lender in Lender’s discretion.

               (xviii) Use. Each Individual Property shall be operating and operated only as a hotel
of the same class and in a similar manner as each such Individual Property is operated on the
Closing Date.

               (xix) Intentionally omitted.

               (xx) Management Agreement. Lender shall have received the Management Agreement.

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               (xxi) Leases; Tenant Estoppels; Subordination, Nondisturbance and Attornment
Agreements. With respect to each Individual Property, Borrowers shall have delivered a true,
complete and correct rent roll and a copy of each of the Leases identified in such rent roll, and
each Lease shall be satisfactory to Lender in Lender’s reasonable discretion.

               (xxii) Subdivision. Evidence satisfactory to Lender (including title endorsements)
that the Land relating to each Individual Property constitutes a separate lot for conveyance and
real estate tax assessment purposes.

               (xxiii) Transaction Costs. Borrowers shall have paid or caused to be paid all
Transaction Costs.

               (xxiv) Completion Guaranty and Guaranty of Recourse Obligations. Guarantor shall have
delivered to Lender the Completion Guaranty and the Guaranty of Recourse Obligations, each in form
and substance acceptable to Lender.

          (b) Lender shall not be obligated to make the Loan unless and until each of the applicable
conditions precedent set forth in this Section 3.1 is satisfied and until Borrower provides
any other information reasonably required by Lender.

          (c) In connection with the Loan, Borrower shall execute and/or deliver to Lender all
additions, amendments, modifications and supplements to the items set forth in this Article
III, including, without limitation, amendments, modifications and any supplements to the Note,
any Mortgage, any Assignment of Leases, any Assignment of Agreements, and Manager’s Subordination,
if reasonably requested by Lender to effectuate the provisions hereof, and to provide Lender with
the full benefit of the security intended to be provided under the Loan Documents. Without in any
way limiting the foregoing, such additions, modifications and supplements shall include those
deemed reasonably desirable by Lender’s counsel in the jurisdiction in which the applicable
Individual Property is located.

          (d) The making of the Loan shall constitute, without the necessity of specifically containing
a written statement to such effect, a confirmation, representation and warranty by Borrower to
Lender that all of the applicable conditions to be satisfied in connection with the making of the
Loan have been satisfied (unless waived by Lender in accordance with Section 8.4 or
otherwise made known to Lender by the Borrowers,) and that all of the representations and
warranties of Borrowers set forth in the Loan Documents are true and correct as of the date of the
making of the Loan.

     Section 3.2. Form of Loan Documents and Related Matters. The Loan Documents and all
of the certificates, agreements, legal opinions and other documents and papers referred to in this
Article III, unless otherwise specified, shall be delivered to Lender, and shall be in form
and substance satisfactory to Lender.

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ARTICLE 4

REPRESENTATIONS AND WARRANTIES

     Section 4.1. Representations and Warranties of Borrower and Operating Lessee. Each
Borrower and Operating Lessee represents, warrants and covenants as follows as to all Borrowers,
Operating Lessee, and all Individual Properties:

          (a) Organization. That each Borrower and Operating Lessee (i) is a duly organized and
validly existing Entity in good standing under the laws of the State of its formation, (ii) is duly
qualified as a foreign Entity in each jurisdiction in which the nature of its business, the
applicable Individual Properties or any of the Collateral makes such qualification necessary or
desirable, (iii) has the requisite Entity power and authority to carry on its business as now being
conducted, and (iv) has the requisite Entity power to execute and deliver, and perform its
obligations under, the Loan Documents.

          (b) Authorization. The execution and delivery by each applicable Borrower and
Operating Lessee of the Loan Documents, each Borrower’s and Operating Lessee’s performance of its
obligations thereunder and the creation of the security interests and Liens provided for in the
Loan Documents (i) have been duly authorized by all requisite Entity action on the part of each
Borrower and Operating Lessee, (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 any Borrower or Operating Lessee
or any indenture or agreement or other instrument to which any Borrower or Operating Lessee is a
party or by which Borrower or Operating Lessee is bound except, with respect to violations of any
such indentures, agreements or other instruments, where such violation would not have a Material
Adverse Effect, (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 any Borrower or Operating
Lessee pursuant to, any indenture or agreement or instrument, and (iv) have been duly executed and
delivered by each Borrower or Operating Lessee, as applicable. Except for those obtained or filed
on or prior to the Closing Date, no Borrower or Operating Lessee is 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 the Loan Documents. The Loan Documents to which any Borrower, Operating Lessee or
any Manager is a party have been duly authorized, executed and delivered by such parties.

          (c) Single-Purpose Entity.

               (i) Each Borrower, each SPE Equity Owner and Operating Lessee has been, and will continue to
be, a duly formed and existing Entity, and a Single-Purpose Entity.

               (ii) Each SPE Equity Owner at all times since its formation has been, and will continue to be,
a duly formed and existing limited liability company or a limited partnership in good standing
under the laws of the jurisdiction of its formation and a Single-Purpose Entity, is duly qualified
as a foreign entity in each other jurisdiction in which the nature

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of its business or any of the
Collateral makes such qualification necessary or desirable, and no Borrower will take action to
cause any SPE Equity Owner not to be a duly formed and existing limited liability company in good
standing under the laws of the jurisdiction of its formation and a Single-Purpose Entity.

               (iii) Each Borrower and Operating Lessee at all times since its formation has complied, and
will, at all times while the Loan is outstanding, continue to comply, with the provisions of all of
its organizational documents, and the laws of the state in which such Borrower and Operating Lessee
was formed relating to the Entity.

          (d) Litigation. Except as disclosed on Schedule 1 attached hereto, there are
no actions, suits or proceedings at law or in equity by or before any Governmental Authority or
other agency now pending and served or, to the knowledge of any Borrower and Operating Lessee,
threatened against any Borrower, Operating Lessee, any SPE Equity Owner, any Manager or any
Individual Property which, if determined against the Borrowers, Operating Lessee, SPE Equity Owner,
Manager or Individual Property could reasonably be expected to have a Material Adverse Effect.

          (e) Agreements. No Borrower or Operating Lessee is a party to any agreement or
instrument or subject to any restriction which is likely to have a Material Adverse Effect. Each
applicable Borrower and Operating Lessee is not in default (beyond any applicable notice, cure or
grace period) in any material respect in the performance, observance or fulfillment of any of the
obligations, covenants or conditions contained in any indenture, agreement or instrument to which
it is a party or by which such Borrower, Operating Lessee or
the applicable Individual Property is bound which could reasonably be expected to have a
Material Adverse Effect.

          (f) No Bankruptcy Filing. No Borrower or Operating Lessee is contemplating either the
filing of a petition under any state or federal bankruptcy or insolvency laws or the liquidation of
all or a major portion of any Borrower’s assets or property, and no Borrower or Operating Lessee
has any knowledge of any Person contemplating the filing of any such petition against any Borrower
or Operating Lessee.

          (g) Full and Accurate Disclosure. No statement of fact made by Borrower or Operating
Lessee in the Loan Documents contains any untrue statement of a material fact or omits to state any
material fact necessary to make statements contained herein or therein not misleading. There is no
fact presently known to any Borrower or Operating Lessee which has not been disclosed to Lender
which materially adversely affects, nor as far as any Borrower or Operating Lessee can foresee,
would reasonably be expected to materially adversely affect the business, operations or condition
(financial or otherwise) of any Borrower or Operating Lessee.

          (h) Management Agreements. Each Management Agreement is valid, binding and
enforceable and in full force and effect and has not been modified and there are no material
defaults (beyond any applicable notice, cure or grace period) under any of them, nor (a) to
Borrowers’ or Operating Lessee’s knowledge has any event occurred that with the passage of time,
the giving of notice or both would result in such a material default under the terms of each
Management Agreement with any Manager other than Remington Manager, and (b) with respect

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to any
Management Agreement with Remington Manager, has any event occurred that with the passage of time,
the giving of notice or both would result in such a material default (beyond any applicable notice,
cure or grace period) under the terms of such Management Agreement.

          (i) Compliance. Except as expressly disclosed in the Engineering Reports, the
Environmental Reports, the PZR zoning reports or the Surveys delivered to Lender by Borrower, each
applicable Borrower, Operating Lessee, each Individual Property and each applicable Borrower’s or
Operating Lessee’s use thereof as a hotel and operations thereat comply in all material respects
with all applicable Legal Requirements and all Insurance Requirements. No Borrower is in default
or violation (beyond any applicable notice, cure or grace period) of any order, writ, injunction,
decree or demand of any Governmental Authority, the violation of which is reasonably likely to have
a Material Adverse Effect.

          (j) Other Debt and Obligations. No Borrower or Operating Lessee has any financial
obligation under any indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which any Borrower or Operating Lessee is a party, or by which Borrower, Operating
Lessee or any Individual Property is bound, other than (a) unsecured trade payables and operational
debt incurred in the ordinary course of business relating to the ownership and operation of an
Individual Property which are not evidenced by a promissory note and when aggregated with the
unsecured trade payables of all other Borrowers and Operating Lessee, do not exceed a maximum
amount of two percent (2.0%) of the Loan Amount and are paid within sixty (60) days of the date
incurred (unless same are being contested in accordance with the terms of this Agreement), (b)
obligations under the Mortgage and the other Loan Documents, and (c) the FF&E Financing. No
Borrower or Operating Lessee has borrowed or
received other debt financing that has not been heretofore repaid in full and no Borrower has
any known material contingent liabilities.

          (k) ERISA.

               (i) Each Plan and, to the knowledge of any Borrower or Operating Lessee, each Multiemployer
Plan, is in compliance in all material respects with, and has been administered in all material
respects in compliance with, its terms and the applicable provisions of ERISA, the Code and any
other federal or state law, and no event or condition has occurred as to which any Borrower or
Operating Lessee would be under an obligation to furnish a report to Lender under Section
5.1(q).

               (ii) As of the date hereof and throughout the term of the Loan (a) no Borrower or Operating
Lessee is or will be an “employee benefit plan,” as defined in Section 3(3) of ERISA, subject to
Title I of ERISA, or a “plan,” as defined in Section 4975(e)(1) of the Code, subject to Code
Section 4975, (b) no Borrower or Operating Lessee is or will be a “governmental plan” within the
meaning of Section 3(32) of ERISA, (c) none of the assets of any Borrower or Operating Lessee
constitutes or will constitute “plan assets” of one or more of any such plans under 29 C.F.R.
Section 2510.3-101 or Section 3(42) of ERISA or otherwise, and (d) transactions by or with each
Borrower or Operating Lessee do not and will not violate state statutes regulating investment of,
and fiduciary obligations with respect to, governmental plans and such state statutes do not in any
manner affect the ability of the Borrower or Operating

55

 

Lessee to perform its obligations under the
Loan Documents or the ability of Lender to enforce any and all of its rights under the Loan
Agreement.

          (l) Solvency. No Borrower or Operating Lessee has entered into this Loan Agreement or
any Loan Document with the actual intent to hinder, delay, or defraud any creditor, and each
Borrower and Operating Lessee has received reasonably equivalent value in exchange for its
obligations under the Loan Documents. Giving effect to the transactions contemplated hereby and
the agreements set forth herein, the fair saleable value of each of Borrower’s and Operating
Lessee’s assets exceeds and will, immediately following the execution and delivery of this
Agreement, exceed such Borrower’s or Operating Lessee’s, as applicable, total liabilities,
including, without limitation, subordinated, unliquidated, or disputed liabilities or Contingent
Obligations. The fair saleable value of each Borrower’s or Operating Lessee’s assets is and will,
immediately following the execution and delivery of this Agreement, be greater than such Borrower’s
or Operating Lessee’s, as applicable, probable liabilities, including the maximum amount of its
Contingent Obligations or its debts as such debts become absolute and matured. No Borrower’s or
Operating Lessee’s assets do and, immediately following the execution and delivery of this
Agreement, will, constitute unreasonably small capital to carry out its business as conducted or as
proposed to be conducted. No Borrower or Operating Lessee intends to, or believes that it will,
incur debts and liabilities (including, without limitation, Contingent Obligations and other
commitments) beyond its ability to pay such debts as they mature (taking into account the timing
and amounts to be payable on or in respect of obligations of each Borrower).

          (m) Not Foreign Person. No Borrower or Operating Lessee is a “foreign person” within
the meaning of § 1445(f)(3) of the Code.

          (n) Investment Company Act; Public Utility Holding Company Act. No Borrower or
Operating Lessee is (i) an “investment company” or a company “controlled” by an “investment
company,” within the meaning of the Investment Company Act of 1940, as amended, (ii) a “holding
company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a “holding
company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of
1935, as amended, or (iii) subject to any other federal or state law or regulation which purports
to restrict or regulate its ability to borrow money.

          (o) No Defaults. No Event of Default or, to Borrower’s knowledge, Default exists
under or with respect to any Loan Document.

          (p) Labor Matters. No Borrower or Operating Lessee is a party to any collective
bargaining agreements.

          (q) Title to the Property. Each Borrower owns either good, indefeasible, marketable
and insurable fee simple or leasehold title to the applicable Individual Properties which it owns,
free and clear of all Liens, other than the Permitted Encumbrances applicable to such Individual
Property. There are no outstanding options to purchase or rights of first refusal affecting any
Individual Property. The Permitted Encumbrances do not and are not likely to materially and
adversely affect (i) the ability of any Borrower to pay in full all sums due under the Note or any
of its other obligations in a timely manner or (ii) the use of any Individual

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Property for the use
currently being made thereof, the operation of such Individual Property as currently being operated
or the value of any Individual Property.

          (r) Use of Proceeds; Margin Regulations. Each Borrower will use the proceeds of the
Loan for the purposes described in Section 2.2. No part of the proceeds of the Loan will
be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose which
would be inconsistent with such Regulation U or any other Regulations of such Board of Governors,
or for any purposes prohibited by applicable Legal Requirements.

          (s) Financial Information. All historical financial data concerning any Borrower,
Operating Lessee or any Individual Property (including without limitation all rent rolls and
operating statements) that has been delivered by any Borrower or Operating Lessee to Lender is
true, complete and correct in all material respects. Since the delivery of such data, except as
otherwise disclosed in writing to Lender, there has been no material adverse change in the
financial position of any Borrower, Operating Lessee or Individual Property, or in the results of
operations of any Borrower or Operating Lessee. No Borrower or Operating Lessee has incurred any
obligation or liability, contingent or otherwise, not reflected in such financial data which might
materially adversely affect its business operations or any Individual Property.

          (t) Condemnation. No Taking has been commenced or, to any Borrower’s or Operating
Lessee’s knowledge, is contemplated with respect to all or any portion of any Individual Property
or for the relocation of roadways providing access to any Individual Property.

          (u) Utilities and Public Access. Except as shown on Surveys each Individual Property
has adequate rights of access to public ways and is served by adequate water, sewer, sanitary sewer
and storm drain facilities as are adequate for full utilization of such Individual
Property for its current purpose. Except as otherwise disclosed by the Surveys, all public
utilities necessary to the continued use and enjoyment of each Individual Property as presently
used and enjoyed are located in the public right-of-way or easements abutting or located on the
premises, and all such utilities are connected so as to serve each Individual Property either (i)
without passing over other property or, (ii) if such utilities pass over other property, pursuant
to valid easements. All roads necessary for the full utilization of each Individual Property for
its current purpose have been completed and dedicated to public use and accepted by all
Governmental Authorities or are the subject of access easements for the benefit of such Individual
Property.

          (v) Environmental Compliance. Except as disclosed in the Environmental Reports, each
of Borrower and Operating Lessee represents, warrants and covenants, as to itself and its
applicable Individual Property: (a) to the knowledge of Borrower and Operating Lessee, there are
no Hazardous Substances or underground storage tanks in, on, or under such Individual Property,
except those that are both (i) in compliance with all Environmental Laws and with permits issued
pursuant thereto and (ii) which do not require Remediation; (b) there are no past, present or
threatened Releases of Hazardous Substances in, on, under, from or affecting any Individual
Property which have not been fully Remediated in accordance with Environmental Law; (c) there is no
Release or threat of any Release of Hazardous Substances which has or is migrating to any
Individual Property; (d) there is no past or present non-compliance with

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Environmental Laws, or
with permits issued pursuant thereto, in connection with any Individual Property which has not been
fully Remediated in accordance with Environmental Law; (e) such Borrower and Operating Lessee does
not actually know of, and has not received, any written notice or other written communication from
any Person (including but not limited to a governmental entity) relating to Hazardous Substances or
the Remediation thereof, of possible liability of any Person pursuant to any Environmental Law,
other environmental conditions in connection with any Individual Property, or any actual or
potential administrative or judicial proceedings in connection with any of the foregoing; and (f)
such Borrower or Operating Lessee has truthfully and fully provided to Lender, in writing, any and
all information relating to conditions in, on, under or from each Individual Property that is known
to such Borrower or Operating Lessee and that is contained in files and records of such Borrower or
Operating Lessee, including but not limited to any reports relating to Hazardous Substances in, on,
under or from such Individual Property and/or to the environmental condition of each Individual
Property.

          (w) No Joint Assessment; Separate Lots. No Borrower or Operating Lessee has or shall
suffer, permit or initiate the joint assessment of any applicable Individual Property (i) with any
other real property constituting a separate tax lot, and (ii) with any portion of any Individual
Property which may be deemed to constitute personal property, or any other procedure whereby the
lien of any taxes which may be levied against such personal property shall be assessed or levied or
charged to any Individual Property as a single lien. Each Individual Property is comprised of one
or more parcels, each of which constitutes a separate tax lot and none of which constitutes a
portion of any other tax lot.

          (x) Assessments. Except as disclosed in the Title Insurance Policy, there are no
pending or, to the knowledge of any Borrower or Operating Lessee, proposed special or other
assessments for public improvements or otherwise affecting any Individual Property, nor, to the
knowledge of any Borrower or Operating Lessee, are there any contemplated improvements to any
Individual Property that may result in such special or other assessments.

          (y) Mortgage and Other Liens. The Mortgages create valid and enforceable first
mortgage Liens on each Individual Property as security for the repayment of the Indebtedness,
subject only to the Permitted Encumbrances applicable to such Individual Property. Each security
agreement, assignment, pledge, grant or other hypothecation which is contained in any Loan Document
establishes and creates a valid and enforceable lien on and a security interest in, or claim to,
the rights and property described therein. All property covered by each such security agreement,
assignment, pledge, grant or other hypothecation is subject to a UCC financing statement filed
and/or recorded, as appropriate, in all places necessary to perfect a valid first priority lien
with respect to the rights and property that are the subject of such security agreement,
assignment, pledge, grant or other hypothecation to the extent governed by the UCC to the extent
such a security interest in such property is perfectible by the filing of a UCC financing
statement. All continuations and any assignments of any such financing statements have been or
will be timely filed or refiled, as appropriate, in the appropriate recording offices.

          (z) Enforceability. The Loan Documents executed by each applicable Borrower or
Operating Lessee in connection with the Loan are the legal, valid and binding obligations of each
such Borrower or Operating Lessee, enforceable against each such Borrower

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or Operating Lessee in
accordance with their terms, subject only to bankruptcy, insolvency and other limitations on
creditors’ rights generally and to equitable principles. Such Loan Documents are, as of the
Closing Date, not subject to any right of rescission, set-off, counterclaim or defense by any
Borrower or Operating Lessee, including the defense of usury, nor will the operation of any of the
terms of the Note, any Mortgage, or such other Loan Documents, or the exercise of any right
thereunder, render any Mortgage unenforceable against any Borrower or Operating Lessee, in whole or
in part, or subject to any right of rescission, set-off, counterclaim or defense by any Borrower or
Operating Lessee, including the defense of usury, and no Borrower or Operating Lessee has asserted
any right of rescission, set-off, counterclaim or defense with respect thereto.

          (aa) No Liabilities. No Borrower or Operating Lessee has any liabilities or
obligations including, without limitation, Contingent Obligations (and including, without
limitation, liabilities or obligations in tort, in contract, at law, in equity, pursuant to a
statute or regulation, or otherwise) other than those liabilities and obligations expressly
permitted by this Agreement.

          (bb) No Prior Assignment. As of the Closing Date, (i) Lender is the assignee of each
Borrower’s or Operating Lessee’s interest under the Leases, and (ii) there are no prior assignments
of the Leases or any portion of the Rents due and payable or to become due and payable which are
presently outstanding.

          (cc) Certificate of Occupancy. Borrowers and Operating Lessee have obtained (in their
own name) all Permits necessary to use and operate the Individual Property for the use described in
Section 3.1(a)(xviii), and all such Permits are in full force and effect, except that
certain interim arrangements are in place with respect to liquor licenses. The use being made of
each Individual Property is in conformity with the certificate of occupancy and/or Permits for each
such Individual Property and any other restrictions, covenants or conditions affecting each such
Individual Property, except where nonconformity has no Material Adverse Effect. Each
such Individual Property contains all equipment necessary to use and operate each such
Individual Property in a first-class manner.

          (dd) Flood Zone. Except as shown on a Survey, no Individual Property is located in a
flood hazard area as designated by the Federal Emergency Management Agency.

          (ee) Physical Condition. Except as disclosed in an Engineering Report, each
Individual Property is free of material structural defects and all building systems contained
therein are in good working order in all material respects subject to ordinary wear and tear.

          (ff) Intellectual Property. All trademarks, trade names and service marks owned by
any Borrower or Operating Lessee or that are pending, or under which any Borrower or Operating
Lessee is licensed, are in good standing and uncontested. There is no right under any trademark,
trade name or service mark necessary to the business of any Borrower or Operating Lessee as
presently conducted or as Borrower or Operating Lessee contemplates conducting its business. No
Borrower or Operating Lessee has infringed, is infringing, or has received written notice of
infringement with respect to asserted trademarks, trade names and service marks of others. To
Borrower’s or Operating Lessee’s knowledge, there is no

59

 

infringement by others of trademarks, trade
names and service marks of any Borrower or Operating Lessee.

          (gg) Intentionally Omitted.

          (hh) Title Insurance. Each Individual Property is covered by either an American Land
Title Association (ALTA) mortgagee’s title insurance policy, or a commitment to issue such a title
insurance policy, insuring a valid first lien on such Individual Property, which is in full force
and effect and is freely assignable to and will inure to the benefit of Lender and any successor or
assignee of Lender, including but not limited to the trustee in a Securitization, subject only to
the Permitted Encumbrances.

          (ii) Tax Fair Market Value. The Allocated Loan Amount with respect to each Individual
Property does not exceed the Tax Fair Market Value of such Individual Property. The Loan Amount
does not exceed the aggregate Tax Fair Market Values of the Individual Properties. If the Note is
significantly modified prior to the closing date of a Secondary Market Transaction so as to result
in a taxable exchange under Code Section 1001, Borrowers will, if requested by Lender, represent
that the amount of such Note does not exceed the aggregate Tax Fair Market Value of the applicable
Individual Property as of the date of such significant modification.

          (jj) Leases. (a) Each Borrower or Operating Lessee is the sole owner of the entire
lessor’s interest in the Leases; (b) the Leases are the valid, binding and enforceable obligations
of the applicable Borrowers or Operating Lessee and the applicable tenant or lessee thereunder; (c)
the terms of all alterations, modifications and amendments to the Leases are reflected in the
certified rent roll statement delivered to and approved by Lender; (d) no Rents reserved in any
Leases have been assigned or otherwise pledged or hypothecated; (e) no Rents have been collected
for more than one (1) month in advance; (f) the premises demised under the Leases have been
completed and the tenants under the Leases have accepted the same and have taken possession of the
same on a rent-paying basis; (g) there exists no offset or defense to the payment of any portion of
any Rents; (h) no Lease contains an option to purchase, right of first
refusal to purchase, expansion right, or any other similar provision; and (i) no Person has
any possessory interest in, or right to occupy, any Individual Property except under and pursuant
to a Lease.

          (kk) Bank Holding Company. No Borrower or Operating Lessee is a “bank holding
company” or a direct or indirect subsidiary of a “bank holding company” as defined in the Bank
Holding Company Act of 1956, as amended, and Regulation Y thereunder of the Board of Governors of
the Federal Reserve System.

          (ll) Embargoed Person. None of the funds or other assets of any Borrower, Operating
Lessee, or any SPE Equity Owner constitute property of, or are beneficially owned, directly or
indirectly, by any person, entity or government subject to trade restrictions under federal law,
including, without limitation, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701
et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any
executive orders or regulations promulgated thereunder, with the result that (i) the investment in
any Borrower, Operating Lessee, any SPE Equity Owner, as applicable (whether directly or

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indirectly), is prohibited by law, or (ii) the Loan made by the Lender is in violation of law
(“Embargoed Person”); (b) no Embargoed Person has any interest of any nature whatsoever in
any Borrower, Operating Lessee, any SPE Equity Owner, as applicable (whether directly or
indirectly), with the result that (i) the investment in any Borrower, Operating Lessee, any SPE
Equity Owner, as applicable (whether directly or indirectly) is prohibited by law, or (ii) the Loan
is in violation of law; and (c) none of the funds of any Borrower, Operating Lease, any SPE Equity
Owner, as applicable, have been derived from any unlawful activity with the result that (i) the
investment in any Borrower, Operating Lessee, any SPE Equity Owner, as applicable (whether directly
or indirectly) is prohibited by law, or (ii) the Loan is in violation of law.

          (mm) Illegal Activity. No portion of any of each Individual Property has been or will
be purchased, improved, equipped or furnished with proceeds of any illegal activity.

          (nn) Compliance. No Borrower or Operating Lessee, and to the best of each Borrower’s
and Operating Lessee’s knowledge after due and diligent inquiry, neither (a) any Person owning an
interest in a Borrower, Operating Lessee or any SPE Equity Owner, (b) each Manager, and (c) any
tenant at each Individual Property: (i) is currently identified on the OFAC List (“OFAC
List”), and (ii) is not a Person with whom a citizen of the United States is prohibited to
engage in transactions by any trade embargo, economic sanction, or other prohibition of any Legal
Requirement (including the September 24, 2001, Executive Order Blocking Property and Prohibiting
Transactions With Person Who Commit, Threaten to Commit, or Support Terrorism), and (iii) is not in
violation of the U.S. Federal Bank Secrecy Act, as amended, and its implementing regulations (31
C.F.R. part 103), the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 and the regulations promulgated
thereunder, any order issued with respect to anti-money laundering by the U.S. Department of the
Treasury’s Office of Foreign Assets Control, or any other anti-money laundering law. Each Borrower
and Operating Lessee has implemented procedures, and will consistently apply those procedures
throughout the term of the Loan, to ensure the foregoing representations and warranties remain true
and correct during the term of the Loan.

          (oo) Franchise Agreements. Each Franchise Agreement is in full force and effect,
there is no material default (beyond any applicable notice, cure or grace period) thereunder by any
party thereto and to the best of Borrower’s and Operating Lessee’s knowledge and except as set
forth on Schedule 2 hereof, no event has occurred that, with the passage of time and/or the
giving of notice would constitute a default thereunder, and no fees under any Franchise Agreement
are accrued and unpaid.

          (pp) Intentionally omitted.

          (qq) Property Improvement Requirements. Attached hereto as Exhibit I is (a) a
true, complete and correct list of all property improvement requirements affecting each Individual
Property (each, a “Property Improvement Requirements”), and (b) a true, complete and
correct description of the estimated amounts to be expended and time frames for required
expenditure pursuant to each Property Improvement Requirements.

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          (rr) Minnesota Zoning Compliance. The number of employees on any shift for the
Borrower’s hotel known as the Hilton Minneapolis Airport Hotel does not exceed 188 people.

          (ss) Organizational Chart. Attached hereto as Exhibit L is a true, complete
and correct copy of the Borrowers’ organizational chart.

     Section 4.2. Survival of Representations and Warranties. Each Borrower and Operating
Lessee agrees that (i) all of the representations and warranties of each Borrower set forth in this
Agreement and in the other Loan Documents delivered on the Closing Date are made as of the Closing
Date (except as expressly otherwise provided) and (ii) all representations and warranties made by
each Borrower shall survive the delivery of the Note and continue for so long as any amount remains
owing to Lender under this Agreement, the Note or any of the other Loan Documents;
provided, however, that the representations, warranties and covenants set
forth in Section 4.1(v), Section 4.1(nn), Section 4.1(qq) and Sections
5.1(d) through 5.1(g), inclusive, shall survive in perpetuity for any act or omission
of Borrower or Operating Lessee occurring during the term of the Loan and shall not be subject to
the exculpation provisions of Section 8.14. All representations, warranties, covenants and
agreements made in this Agreement or in the other Loan Documents shall be deemed to have been
relied upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or
on its behalf. Without limiting any other provision of this Agreement, with respect to each
Secondary Market Transaction, within 3 days of receipt of Lender’s request, each Borrower or
Operating Lessee shall deliver to Lender a certification (a) remaking all of the representations
and warranties contained in this Agreement as of the date of such Secondary Market Transaction, or
(y) otherwise specifying any changes in or qualifications to such representations and warranties as
of such date as may be necessary to make such representations consistent with the facts as they
exist on such date.

ARTICLE 5

AFFIRMATIVE COVENANTS

     Section 5.1. Borrower Covenants. Each Borrower and Operating Lessee covenants and
agrees that, from the date hereof and until payment in full of the Indebtedness:

          (a) Existence; Compliance with Legal Requirements; Insurance. Each Borrower and
Operating Lessee shall do or cause to be done all things necessary to preserve, renew and keep in
full force and effect its Entity existence, rights, licenses, Permits and franchises necessary for
the conduct of its business and comply in all material respects with all applicable Legal
Requirements and Insurance Requirements applicable to it and each Individual Property. Each
Borrower and Operating Lessee shall notify Lender promptly of any written notice or order that such
Borrower or Operating Lessee receives from any Governmental Authority relating to such Borrower’s
or Operating Lessee’s failure to comply with such applicable Legal Requirements relating to such
Borrower’s or Operating Lessee’s applicable Individual Property and promptly take any and all
actions necessary to bring its operations at such Individual Property into compliance with such
applicable Legal Requirements (and shall fully comply with the requirements of such Legal
Requirements that at any time are applicable to its operations at any Individual Property)
provided, that such Borrower or Operating Lessee at its

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expense may, after prior notice to the
Lender, contest by appropriate legal, administrative or other proceedings conducted in good faith
and with due diligence, the validity or application, in whole or in part, of any such applicable
Legal Requirements as long as (i) neither the applicable Collateral nor any part thereof or any
interest therein, will be sold, forfeited or lost or subject to a continuing Lien if such Borrower
or Operating Lessee pays the amount or satisfies the condition being contested, and such Borrower
or Operating Lessee would have the opportunity to do so, in the event of such Borrower’s or
Operating Lessee’s failure to prevail in the contest, (ii) Lender would not, by virtue of such
permitted contest, be exposed to any risk of any civil liability or criminal liability, and (iii)
such Borrower or Operating Lessee shall have furnished to the Lender additional security in respect
of the claim being contested or the loss or damage that may result from such Borrower’s or
Operating Lessee’s failure to prevail in such contest in such amount as may be reasonably requested
by Lender but in no event less than one hundred twenty-five percent (125%) of the amount of such
claim. Each Borrower and Operating Lessee shall at all times maintain, preserve and protect all
franchises and trade names and preserve all the remainder of its property necessary for the
continued conduct of its business and keep the applicable Individual Properties in good repair,
working order and condition, except for reasonable wear and use, and from time to time make, or
cause to be made, all necessary repairs, renewals, replacements, betterments and improvements
thereto, all as more fully provided in the Mortgages. Borrowers and Operating Lessee shall keep
their Individual Properties insured at all times, as provided in the Mortgages.

          (b) Impositions and Other Claims. Subject to Section 2.11 hereof, Borrowers
and Operating Lessee shall pay and discharge or cause to be paid and discharged all Impositions, as
well as all lawful claims for labor, materials and supplies or otherwise, which could become a
Lien, all as more fully provided in, and subject to any rights to contest contained in, the
Mortgages.

          (c) Litigation. Each Borrower and Operating Lessee shall give prompt written notice
to Lender of any litigation or governmental proceedings pending or threatened against such Borrower
or Operating Lessee which is reasonably likely to have a Material Adverse Effect.

          (d) Environmental. Borrowers and Operating Lessee covenant and agree that: (a) all
uses and operations on or of the Individual Properties, whether by any Borrower, Operating Lessee
or any other Person, shall be in compliance with all Environmental Laws and
permits issued pursuant thereto; (b) there shall be no Releases of Hazardous Substances in,
on, under or from any Individual Property; (c) there shall be no Hazardous Substances used, present
or Released in, on, under or from any Individual Property, except those that are (i) in compliance
in all material respects with all Environmental Laws and with permits issued pursuant thereto, if
required under Environmental Laws; (ii) fully disclosed to Lender in writing; and (iii) which do
not require Remediation, (d) Borrowers and Operating Lessee shall keep each Individual Property
free and clear of all Environmental Liens; (e) Borrowers and Operating Lessee shall, at its sole
cost and expense, fully and expeditiously cooperate in all activities pursuant to Section
5.1(e) of this Agreement, including but not limited to providing all relevant information and
making knowledgeable Persons available for interviews; (f) intentionally omitted; (g) such Borrower
or Operating Lessee shall, at its sole cost and expense, (i) effectuate Remediation of any
condition (including but not limited to a Release of a Hazardous Substance or violation of

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Environmental Laws) in, on, under or from each Individual Property for which Remediation is legally
required; (ii) comply with all Environmental Laws; (iii) comply with any directive from any
governmental authority; and (iv) take any other reasonable action necessary or appropriate for
protection of human health or the environment, if required under Environmental Laws; (h) Borrowers
and Operating Lessee shall not do or willfully allow any tenant or other user of any Individual
Property to do any act that materially increases the dangers to human health or the environment;
(i) Borrowers and Operating Lessee shall immediately notify Lender in writing of (A) any unlawful
presence or Releases or threatened Releases of Hazardous Substances in, on, under, from or
migrating towards any Individual Property; (B) any material non-compliance with any Environmental
Laws related in any way to any Individual Property; (C) any actual or potential Environmental Lien;
(D) any Remediation of environmental conditions relating to any Individual Property required by
Environmental Laws; and (E) any written notice or other communication of which any Borrower or
Operating Lessee receives from any source whatsoever (including but not limited to a governmental
entity) relating in any way to Release, presence, or Release or threatened Release of Hazardous
Substances in violation of Environmental Laws or the Remediation thereof, Law, other environmental
conditions in connection with any Individual Property, or any actual or potential administrative or
judicial proceedings in connection with anything referred to in this Agreement; and (j) without
limiting the foregoing, upon becoming aware of the presence of or potential for Mold in violation
of applicable Environmental Laws on any Individual Property, at its sole cost and expense Borrowers
and Operating Lessee shall (i) undertake or cause an investigation to identify the source(s) of
such Mold, including any water intrusion, and develop and implement a plan for the Remediation of
any Mold required under applicable Environmental Laws; (ii) perform, or cause to be performed, all
acts required under applicable Environmental Laws for the Remediation of the Mold in a timely
manner given the circumstances; (iii) properly dispose in accordance with all applicable
Environmental Laws of any materials generated as a result of or in connection with the foregoing
items (i) and (ii); and (iv) provide Lender with evidence of Borrower’s or Operating Lessee’s
compliance with the requirements of each of the foregoing to Lender’s reasonable satisfaction.

          (e) Environmental Cooperation and Access. In the event the Environmental Indemnified
Parties reasonably believe that an environmental condition exists on any Individual Property that,
in the reasonable discretion of the Lender, could endanger any tenants or other occupants of any
Individual Property or their guests or the general public or materially and adversely affects the
value of any Individual Property, upon reasonable notice from the Lender, Borrowers shall, at any
Borrowers’ sole cost and expense, promptly cause an engineer or
consultant satisfactory to the Lender to conduct any environmental assessment or audit (the
scope of which shall be determined in the sole and absolute discretion of Lender) and take any
samples of soil, groundwater or other water, air, or building materials or any other invasive
testing reasonably requested by Lender and promptly deliver the results of any such assessment,
audit, sampling or other testing; provided, further, that such Borrowers, the Environmental
Indemnified Parties and any other Person designated by the Environmental Indemnified Parties,
including but not limited to any receiver, any representative of a governmental entity, and any
environmental consultant, shall have the right, but not the obligation, to enter upon such
Individual Property at all reasonable times (without materially interfering with the business
conducted at the Individual Property) to assess any and all aspects of the environmental condition
of such Individual Property and its use, including but not limited to conducting any

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environmental
assessment or audit (the scope of which shall be determined in the reasonable discretion of Lender)
and taking samples of soil, groundwater or other water, air, or building materials, and reasonably
conducting other invasive testing (which shall be at Borrowers’ sole cost and expense if Borrowers
fail to conduct or deliver an assessment or audit as required pursuant to this Section), Borrowers
shall cooperate with and provide the Environmental Indemnified Parties and any such Person
designated by the Environmental Indemnified Parties with access to each Individual Property.

          (f) Environmental Indemnity. Borrowers covenant and agree, at their sole cost and
expense, to protect, defend, indemnify, release and hold Environmental Indemnified Parties harmless
from and against any and all Losses imposed upon or incurred by or asserted against any
Environmental Indemnified Parties and directly or indirectly arising out of or in any way relating
to any one or more of the following (other than Losses imposed upon or incurred by or asserted
against any Environmental Indemnified Parties to the extent that the Borrowers can prove (1) that
such Losses were caused exclusively by actions, conditions or events that occurred entirely after
the date that Lender (or Lender’s designee or transferee by reason of exercise of remedies)
actually acquired title to the applicable Individual Property, and (2) that such Losses were not
caused or occasioned by the actions or inactions of any Borrower, any Manager, Operating Lessee or
any agent, employee, contractor or any Affiliate of any of the foregoing): (a) any presence or use
of any Hazardous Substances in, on, above, under, from or affecting any Individual Property; (b)
any past, present or threatened Release of Hazardous Substances in, on, above, under, from or
affecting any Individual Property; (c) any activity by any Borrower, any Person affiliated with any
Borrower, and any tenant or other user of such Individual Property in connection with any actual,
proposed or threatened use, treatment, storage, holding, existence, disposition or other Release,
generation, production, manufacturing, processing, refining, control, management, abatement,
removal, handling, transfer or transportation to or from such Individual Property of or exposure to
any Hazardous Substances at any time located in, under, on or above such Individual Property; (d)
any activity by any Borrower, any Person affiliated with any Borrower, and any tenant or other user
of such Individual Property in connection with any actual or proposed Remediation of any Hazardous
Substances at any time located in, under, on, above or affecting such Individual Property, whether
or not such Remediation is voluntary or pursuant to court or administrative order, including but
not limited to any removal, remedial or corrective action; (e) any past, present or threatened
non-compliance or violations of any Environmental Laws (or permits issued pursuant to any
Environmental Law) in connection with such Individual Property or operations thereon, including but
not limited to any failure by any Borrower, any Person affiliated with any Borrower, and any tenant
or other user of any Individual Property to comply with any order of any governmental authority in
connection with
any Environmental Laws; (f) the imposition, recording or filing or the threatened imposition,
recording or filing of any Environmental Lien encumbering any Individual Property; (g) any
administrative processes or proceedings or judicial proceedings in any way connected with any
matter addressed in this Agreement; (h) any past, present or threatened injury to, destruction of
or loss of natural resources in any way connected with any Individual Property, including but not
limited to costs to investigate and assess such injury, destruction or loss; (i) any acts of such
Borrower, any Person affiliated with any Borrower, and any tenant or other user of any Individual
Property in arranging for disposal or treatment, or arranging with a transporter for transport for
disposal or treatment, of Hazardous Substances at any facility or incineration vessel containing
such or similar Hazardous Substances; (j) any acts of such Borrower, any Person

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affiliated with any
such Borrower, and any tenant or other user of such Individual Property in accepting any Hazardous
Substances for transport to disposal or treatment facilities, incineration vessels or sites from
which there is a Release, or a threatened Release of any Hazardous Substance which causes the
incurrence of costs for Remediation; (k) any personal injury, wrongful death, or property or other
damage arising under any statutory or common law or tort law theory, including but not limited to
damages assessed for private or public nuisance or for the conducting of an abnormally dangerous
activity on or near such Individual Property; and (l) any material misrepresentation or inaccuracy
in any representation or warranty or material breach or failure to perform any covenants or other
obligations pursuant to this Agreement or any other Loan Document. IT IS EXPRESSLY ACKNOWLEDGED
AND AGREED BY EACH BORROWER THAT THE INDEMNITY (AND/OR THE RELEASE) CONTAINED IN THIS SECTION
5.1(f) PROTECTS LENDER FROM THE CONSEQUENCES OF LENDER’S ACTS OR OMISSIONS, INCLUDING WITHOUT
LIMITATION, THE NEGLIGENT ACTS OR OMISSIONS OF LENDER TO THE EXTENT PERMITTED BY LAW; PROVIDED,
HOWEVER, THAT NOTHING CONTAINED HEREIN SHALL BE DEEMED TO RELIEVE THE LENDER FROM LIABILITY DUE TO
ITS GROSS NEGLIGENCE, FRAUD OR WILFUL MISCONDUCT.

          Notwithstanding anything contained in any Loan Document to the contrary, the obligations of
Ashford Anchorage LP, a Delaware limited partnership, under any environmental indemnity in any Loan
Document are not secured by any Mortgage.

          (g) Duty to Defend. Upon written request by any Environmental Indemnified Party,
Borrowers shall defend same (if requested by any Environmental Indemnified Party, in the name of
the Environmental Indemnified Party) by attorneys and other professionals reasonably approved by
the Environmental Indemnified Parties. Borrowers shall, within five Business Days of receipt
thereof, give written notice to Lender of (i) any notice, advice or other communication from any
governmental entity or any source whatsoever with respect to Hazardous Substances on, from or
affecting any Individual Property, and (ii) any legal action brought against any party or related
to any Individual Property, with respect to which any Borrower may have liability under this
Agreement. Such notice shall comply with the provisions of Section 8.6 hereof.

          (h) Operating Lease.

               (i) Each Borrower shall (a) promptly perform and observe all of the covenants required to be
performed and observed by it under the Operating Leases and do all things necessary to preserve and
to keep unimpaired its material rights thereunder; (b) promptly notify Lender of any material
default (beyond any applicable notice, grace or cure period) under
any Operating Lease of which it is aware; (c) promptly deliver to Lender a copy of any notice
of default or other material notice under any Operating Lease delivered to any Operating Lessee by
Borrower; (d) promptly give notice to Lender of any written notice or information that Borrower
receives which indicates that an Operating Lessee is terminating its Operating Lease or that any
Operating Lessee is otherwise discontinuing its operation of the applicable Individual Property;
and (e) promptly enforce the performance and observance of all of the material covenants required
to be performed and observed by the Operating Lessee under the applicable Operating Lease.

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               (ii) If at any time, (A) an Operating Lessee shall become insolvent or a debtor in a
bankruptcy proceeding or (B) Lender or its designee has taken title to an Individual Property by
foreclosure or deed in lieu of foreclosure, has become a mortgagee-in-possession, has appointed a
receiver with respect to the applicable Individual Property or has otherwise taken title to such
Individual Property, Lender shall have the absolute right to (and Borrower and Operating Lessee
shall reasonably cooperate and not in any way hinder, delay or otherwise interfere with Lender’s
right to), immediately terminate the applicable Operating Lease under and in accordance with the
terms of the applicable Subordination, Attornment and Security Agreement.

               (iii) Borrower shall not, without the prior written consent of Lender, which consent shall not
be unreasonably withheld, conditioned or delayed: (a) surrender, terminate or cancel any Operating
Lease or otherwise replace any Operating Lessee or enter into any other operating lease with
respect to any Individual Property, provided, however, at the end of the term of each Operating
Lease, the applicable Borrower may renew such Operating Lease or enter into a replacement Operating
Lease with Operating Lessee on substantially the same terms as the expiring Operating Lease except
that Lender shall have the right to approve any material change thereto; (b) reduce or consent to
the reduction of the term of any Operating Lease; or (c) enter into, renew, amend, modify, waive
any provisions of, reduce Rents under, or shorten the term of any Operating Lease.

          (i) Franchise Agreements.

               (i) Each Individual Property shall be operated under the terms and conditions of the
applicable Franchise Agreement. Each Borrower shall or shall cause the applicable Operating Lessee
to (i) pay all sums required to be paid by the franchisee under each Franchise Agreement, (ii)
diligently perform, observe and enforce all of the terms, covenants and conditions of each
Franchise Agreement on the part of the franchisee thereunder to be performed, observed and enforced
to the end that all things shall be done which are necessary to keep unimpaired the rights of said
franchisee under each Franchise Agreement, (iii) promptly notify Lender of the giving of any notice
to any Borrower and/or Operating Lessee of any default (beyond any applicable notice, grace or cure
period) by the franchisee in the performance or observance of any of the terms, covenants or
conditions of any Franchise Agreement on the part of the franchisee thereunder to be performed and
observed and deliver to Lender a true copy of each such notice, and (iv) promptly deliver to Lender
a copy of each financial statement, business plan, capital expenditure plan, notice of a default
under the Franchise Agreement, report regarding operations at the related Individual Property,
estimates of any monetary nature and any other items reasonably requested by Lender, in each case
received by any Borrower or Operating Lessee under any Franchise Agreement.

               (ii) No Borrower shall (and shall not cause or permit any Operating Lessee to), without the
prior consent of the Lender (which consent shall not be unreasonably withheld, conditioned or
delayed), surrender any Franchise Agreement or terminate or cancel any Franchise Agreement or
modify, change, supplement, alter or amend any Franchise Agreement, in any respect, either orally
or in writing, and each Borrower hereby assigns to Lender as further security for the payment of
the Indebtedness and for the performance and observance of the terms, covenants and conditions of
this Loan Agreement, any and all rights, privileges and

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prerogatives of each Borrower to surrender
any Franchise Agreement or to terminate, cancel, modify, change, supplement, alter or amend any
Franchise Agreement in any respect, and any such surrender of any Franchise Agreement or
termination, cancellation, modification, change, supplement, alteration or amendment of any
Franchise Agreement without the prior consent of Lender (which consent shall not be unreasonably
withheld, conditioned or delayed) shall be void and of no force and effect.

               (iii) If any franchisee shall default in the performance or observance of any material term,
covenant or condition of any Franchise Agreement on the part of the franchisee thereunder to be
performed or observed beyond applicable notice and cure periods contained therein, and Borrower or
Operating Lessee is not contesting the validity of such default in good faith, then, without
limiting the generality of the other provisions of this Agreement, and without waiving or releasing
any Borrower from any of its obligations hereunder, Lender shall have the right, but shall be under
no obligation, to pay any sums and to perform any act or take any action as may be appropriate to
cause all the terms, covenants and conditions of such Franchise Agreement on the part of the
franchisee to be performed or observed to be promptly performed or observed on behalf of such
Borrower, to the end that the rights of said franchisee (and/or such Borrower and/or Operating
Lessee) in, to and under such Franchise Agreement shall be kept unimpaired and free from default.
Any such amounts so advanced by Lender together with interest thereon from the date expended by
Lender of the Default Rate shall be part of the Indebtedness and Borrower shall immediately repay
such amounts to Lender upon demand. Pursuant to the terms of the applicable Subordination
Attornment and Security Agreement and/or Assignment of Management Agreement, Lender and any person
designated by Lender shall have, and are hereby granted, the right to enter upon the applicable
Individual Property at any reasonable time and from time to time for the purpose of taking any such
action. If any Franchisor shall deliver to Lender a copy of any notice sent to any Borrower and/or
Operating Lessee of any default under any Franchise Agreement, such notice shall constitute full
protection to Lender for any action taken or omitted to be taken by Lender in good faith, in
reliance thereon.

               (iv) Each Borrower shall (or shall cause the applicable Operating Lessee to) exercise each
individual option, if any, to extend or renew the term of each Franchise Agreement upon demand by
Lender made at any time within ninety (90) days prior to the last day upon which any such option
may be exercised, and each Borrower hereby expressly authorizes and appoints Lender as its
attorney-in-fact to exercise (or cause the applicable Operating Lessee to exercise) any such option
in the name of and upon behalf of such Borrower should such Borrower fail to do so, which power of
attorney shall be irrevocable and shall be deemed to be coupled with an interest.

               (v) Any sums expended by Lender pursuant to this Section shall bear interest at the Default
Rate from the date such cost is incurred to the date of payment to Lender,
shall be deemed to constitute a portion of the Indebtedness, shall be secured by the lien of
the Mortgage and the other Loan Documents and shall be immediately due and payable within two
Business Days after written demand by Lender therefor.

               (vi) Each Borrower shall, promptly upon request of Lender, but no more than two (2) times in
any calendar year during the term of the Loan (unless (i) an Event of

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Default has occurred and is
continuing or (ii) such request is occasioned in connection with a Secondary Market Transaction)
use its diligent best efforts to obtain and deliver (or cause to be delivered) an estoppel
certificate from each Franchisor stating that (i) each applicable Franchise Agreement is in full
force and effect and has not been modified, amended or assigned, (ii) neither such Franchisor nor
the franchisee named thereunder is in default under any of the terms, covenants or provisions of
each applicable Franchise Agreement and such Franchisor knows of no event which, but for the
passage of time or the giving of notice or both, would constitute an event of default under each
applicable Franchise Agreement, (iii) neither such Franchisor nor the franchisee thereunder has
commenced any action or given or received any notice for the purpose of terminating any applicable
Franchise Agreement and (iv) all sums due and payable to such Franchisor under each applicable
Franchise Agreement have been paid in full.

               (vii) Upon the termination of any Franchise Agreement, each Borrower shall (or shall cause
Operating Lessee to) promptly enter into a new Franchise Agreement with a replacement Franchisor,
which shall deliver a comfort or similar letter to and in favor of Lender, all upon terms and
conditions acceptable to Lender in its reasonable discretion.

          (h) Access to Property. Each Borrower and Operating Lessee shall permit agents,
representatives and employees of Lender to inspect their Individual Properties or any part thereof
at such reasonable times as may be requested by Lender upon reasonable advance written notice and
without materially interfering with the business conducted at the Individual Property.

          (i) Notice of Default. Each Borrower and Operating Lessee shall promptly advise
Lender of any material adverse change in such Borrower’s or Operating Lessee’s condition, financial
or otherwise, or of the occurrence of any Default or Event of Default.

          (j) Cooperate in Legal Proceedings. Except with respect to any claim by any Borrower
against Lender, such Borrower and Operating Lessee shall cooperate with Lender with respect to any
proceedings before any Governmental Authority which may in any way affect the rights of Lender
hereunder or any rights obtained by Lender under any of the Loan Documents and, in connection
therewith, not prohibit Lender, at its election, from participating in any such proceedings.

          (k) Perform Loan Documents. Borrowers and Operating Lessee shall observe, perform and
satisfy all the terms, provisions, covenants and conditions required to be observed, performed or
satisfied by them, and shall pay when due all costs, fees and expenses required to be paid by them,
under the Loan Documents executed and delivered by such Borrower or Operating Lessee.

          (l) Insurance Benefits; Condemnation Claims. Each Borrower and Operating Lessee shall
cooperate with Lender in settling any insurance or condemnation claim and/or obtaining for Lender
the benefits of any Insurance Proceeds and/or Condemnation Proceeds lawfully or equitably payable
to Lender in connection with any Individual Property, and Lender
shall be reimbursed for any expenses incurred in connection therewith (including reasonable
attorneys’ fees and disbursements) and the payment by any Borrower or Operating Lessee of the
expense of an Appraisal on behalf of Lender in case of a fire or other casualty affecting any

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Individual Property or any part thereof out of such Insurance Proceeds and/or Condemnation
Proceeds, all as more specifically provided in the Mortgages.

          (m) Further Assurances. Borrowers shall, at Borrowers’ sole cost and expense:

               (i) upon Lender’s request therefor given from time to time after the occurrence of any Event
of Default pay for (a) reports of UCC, federal tax lien, state tax lien, judgment and pending
litigation searches with respect to any Borrower and (b) searches of title to any Individual
Property, each such search to be conducted by search firms reasonably designated by Lender in each
of the locations reasonably designated by Lender.

               (ii) furnish to Lender all instruments, documents, boundary surveys, footing or foundation
surveys, certificates, plans and specifications, appraisals, title and other insurance reports and
agreements, and each and every other document, certificate, agreement and instrument required to be
furnished pursuant to the terms of the Loan Documents;

               (iii) execute and deliver to Lender such documents, instruments, certificates, assignments and
other writings, and do such other acts necessary, to evidence, preserve and/or protect the
Collateral at any time securing or intended to secure the Note, as Lender may require in Lender’s
discretion; and

               (iv) do and execute all and such further lawful acts, conveyances and assurances for the
better and more effective carrying out of the intents and purposes of this Agreement and the other
Loan Documents, as Lender shall require from time to time in its discretion.

          (n) Management of Property. Each Individual Property will be managed at all times by
the applicable Manager pursuant to a Management Agreement unless terminated as herein provided.
Each Borrower and Operating Lessee shall comply with the terms of and enforce its rights under the
Management Agreement in all material respects. The Management Agreement shall be terminated by
Borrowers or Operating Lessee, at Lender’s request, upon thirty (30) days prior written notice to
Borrowers, Operating Lessee and the applicable Manager (i) upon the occurrence of an Event of
Default, (ii) if the Manager is in default under the Management Agreement, or (iii) the applicable
Manager commits any act which constitutes an act of fraud, material misrepresentation, intentional
misrepresentation, gross negligence, willful misconduct, misappropriation of funds, or physical
waste of any Individual Property. If a manager is terminated pursuant hereto or otherwise
terminated by Manager pursuant to the Management Agreement, Borrowers and Operating Lessee shall
promptly seek to appoint a replacement manager acceptable to Lender in Lender’s discretion, and
Borrowers’ or Operating Lessee’s failure to appoint an acceptable manager within thirty (30) days
after Lender’s request of Borrowers to terminate the Management Agreement or other termination
shall constitute an immediate Event of Default. Borrowers or Operating Lessee may from time to
time appoint a successor manager to manage the Individual Property, which successor manager shall
be approved in writing by Lender in Lender’s discretion and Borrower shall have received Rating
Agency Confirmation. Notwithstanding the foregoing, any successor manager selected
hereunder by Lender, any Borrower or Operating Lessee to serve as Manager (i) shall be either

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(A) the Remington Manager or Interstate Manager provided, that the Remington Manager or
Interstate Manager, as applicable, shall manage the applicable Individual Property pursuant to the
terms of the master management agreement by and among the Borrowers and the Remington Manager or
Interstate Manager, as applicable, or (B) a reputable management company having at least seven (7)
years’ experience in the management of commercial properties with similar uses as the Individual
Properties and in the jurisdiction in which the Individual Properties are located and (ii) shall
not be paid management fees in excess of fees which are market fees for comparable managers of
comparable properties in the same geographic area.

          (o) Financial Reporting.

                    (1) Each Borrower and Operating Lessee shall keep and maintain or shall cause to be kept and
maintained, on a Fiscal Year basis, in accordance with GAAP, books, records and accounts reflecting
in reasonable detail all of the financial affairs of such Borrower or Operating Lessee, as
applicable, and all items of income and expense in connection with the operation of the applicable
Individual Properties and in connection with any services, equipment or furnishings provided in
connection with the operation of such Individual Properties. Lender, at Lender’s cost and expense,
whether such income or expense may be realized by the applicable Borrower, Operating Lessee or by
any other Person whatsoever, shall have the right from time to time and at all times during normal
business hours upon reasonable prior written notice to such Borrower or Operating Lessee to examine
such books, records and accounts at the office of such Borrower, Operating Lessee or other Person
maintaining such books, records and accounts and to make such copies or extracts thereof as Lender
shall desire. After the occurrence of an Event of Default, Borrowers and Operating Lessee shall
pay any costs and expenses incurred by Lender to examine any and all of such Borrower’s or
Operating Lessee’s books, records and accounts as Lender shall determine in Lender’s discretion to
be necessary or appropriate in the protection of Lender’s interest.

                    (2) Borrower shall furnish to Lender annually within ninety (90) days following the end of
each Fiscal Year, a true, complete, correct and accurate copy of the consolidated financials of
Ashford Hospitality Trust, Inc. audited by a “Big Four” accounting firm or other firm reasonably
acceptable to Lender accompanied by an unqualified opinion from an Independent certified public
accountant acceptable to Lender in Lender’s discretion, and each Borrower and Operating Lessee
shall furnish financial statements and all such financial statements above shall (a) be in form and
substance reasonably acceptable to Lender, (b) be prepared in accordance with GAAP, (c) include or
be accompanied by without limitation, a statement of operations (profit and loss), a statement of
cash flows, a calculation of Net Operating Income for all applicable Individual Properties, a
balance sheet, an aged accounts receivable report and such other information or reports as shall be
requested by Lender or any applicable Rating Agency, (d) be accompanied by an Officer’s Certificate
from a senior executive of such Borrower or Operating Lessee, as applicable, certifying as of the
date thereof (x) that such statement is true, correct, complete and accurate, and fairly reflects
the results of operations and financial condition of such Borrower or Operating Lessee for the
relevant period, and (y) notice of whether there exists an Event of Default or Default, and if such
Event of Default or Default exists, the nature thereof, the period of time it has existed and the
action then being taken to remedy same.

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                    (3) Intentionally Omitted.

                    (4) Each Borrower and Operating Lessee shall furnish to Lender within twenty (20) days
following the end of each calendar month, a true, correct, complete and accurate monthly unaudited
financial statement which shall (a) be in form and substance reasonably acceptable to Lender, (b)
be prepared in accordance with GAAP, (c) include, without limitation, a statement of operations
(profit and loss), a statement of cash flows, a calculation of Net Operating Income for all
applicable Individual Properties, a consolidated balance sheet, an aged accounts receivable report
and such other information or reports as shall be requested by Lender or any applicable Rating
Agency and (d) be accompanied by an Officer’s Certificate from a senior executive of such Borrower
or Operating Lessee, as applicable, certifying as of the date thereof (x) that such statement is
true, correct, complete and accurate and fairly reflects the results of operations and financial
condition of such Borrower or Operating Lessee for the relevant period, and (y) notice of whether
there exists an Event of Default or Default, and if such Event of Default or Default exists, the
nature thereof, the period of time it has existed and the action then being taken to remedy same.

                    (5) Each Borrower and Operating Lessee shall furnish to Lender, within thirty (30) days
following the end of each calendar month:

                         (A) such occupancy and rate statistics as Lender shall reasonably request;

                         (B) operating statements for each Individual Property, in “Microsoft Excel” format and in form
and substance substantially similar to the form set forth on Exhibit J, (a) containing
monthly and year-to-date results compared to the results for the prior year for the same periods
for each Individual Property, and (b) containing monthly and year-to-date results compared to the
results for the prior year for the same periods for the Individual Properties on a consolidated
basis;

                         (C) Smith Travel Star Reports (if applicable) for the applicable month for each Individual
Property in “Microsoft Excel” format (if available);

                         (D) updated quality scores for the applicable month for each Individual Property, including
detailed criteria and thresholds (if any);

                         (E) summary reports of franchise terminations, defaults, reflagging efforts and conversions
for each Individual Property (if applicable);

Each such document shall (a) be delivered to Lender in electronic form and in form and substance
otherwise reasonably acceptable to Lender, and (b) be accompanied by an Officer’s Certificate from
a senior executive of each Borrower and Operating Lessee, as applicable, certifying as of the date
thereof (x) that such statement is true, correct, complete and accurate and (y) notice of whether
there exists an Event of Default or Default, and if such Event of Default or Default exists, the
nature thereof, the period of time it has existed and the action then being taken to remedy same.

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                    (6) Each Borrower and Operating Lessee shall furnish to Lender, within twenty (20) days after
written request, such further information with respect to
the operation of all applicable Individual Properties and the financial affairs of such
Borrower or Operating Lessee, as applicable, as may be reasonably requested by Lender including,
without limitation, all business plans prepared for such Borrower or Operating Lessee and for the
operation of all such Individual Properties.

                    (7) Each Borrower and Operating Lessee shall furnish to Lender, within twenty (20) days after
written request, such further information regarding any Plan or Multiemployer Plan and any reports
or other information required to be filed under ERISA as may be requested by Lender.

                    (8) Each Borrower and Operating Lessee shall, concurrently with such Borrower’s or Operating
Lessee’s delivery to Lender, provide a copy of the items required to be delivered to Lender under
this Section 5.1(o) to the Rating Agencies, the trustee, and any servicer and/or special
servicer that may be retained in conjunction with the Loan or any Secondary Market Transaction.
Each Borrower and Operating Lessee shall furnish to Lender written notice, within two (2) Business
Days after receipt by such Borrower or Operating Lessee, as applicable, of any Rents or other items
of Gross Revenue that any Borrower or Operating Lessee is not required by this Agreement to deposit
in any Collection Account, Cash Collateral Account, together with such other documents and
materials relating to such Rents or other items of Gross Revenue as Lender reasonably requests.

                    (9) Each Borrower and Operating Lessee shall provide Lender with updated information
(reasonably satisfactory to Lender) concerning its related Impositions and insurance premiums for
the next succeeding Fiscal Year prior to the termination of each Fiscal Year.

                    (10) Each Borrower and Operating Lessee shall furnish to Lender annually no less than thirty
(30) days prior to the beginning of each Fiscal Year, a true, complete, correct and accurate copy
of such Borrower’s or Operating Lessee’s draft annual capital and operating budget for each such
Borrower’s or Operating Lessee’s Individual Property (each, an “Annual Budget”).

                    (11) Each Borrower and Operating Lessee shall furnish to Lender such other financial
information with respect to such Borrower or Operating Lessee or the applicable Manager as Lender
may, from time to time reasonably request.

          (p) Conduct of Business. Each Borrower and Operating Lessee shall cause the operation
of the Individual Properties to be conducted at all times in a manner consistent with the
following:

               (i) to maintain or cause to be maintained the standard of operations at each Individual
Property at all times at a level necessary to insure a level of quality for each such Individual
Property consistent with similar facilities in the same competitive market;

               (ii) to operate or cause to be operated each Individual Property in a prudent manner in
compliance in all material respects with applicable Legal Requirements and

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Insurance Requirements
relating thereto and cause all licenses, Permits, and any other agreements necessary for the
continued use and operation of each Individual Property to remain in effect except to the extent
the failure thereof would not have a Material Adverse Effect; and

               (iii) to maintain or cause to be maintained sufficient inventory and equipment of types and
quantities at each Individual Property to enable Borrowers or the applicable Manager to operate the
Individual Properties.

          (q) ERISA.

               (i) Each Borrower and Operating Lessee shall deliver to Lender as soon as possible, and in any
event within ten (10) days after such Borrower or Operating Lessee knows or has reason to believe
that any of the events or conditions specified below with respect to any Plan or Multiemployer Plan
has occurred or exists, a statement signed by a senior financial officer of such Borrower setting
forth details respecting such event or condition and the action, if any, that such Borrower,
Operating Lessee or its ERISA Affiliate proposes to take with respect thereto (and a copy of any
report or notice required to be filed with or given to PBGC by such Borrower, Operating Lessee or
an ERISA Affiliate with respect to such event or condition):

                    (1) any reportable event, as defined in Section 4043(b) of ERISA and the regulations issued
thereunder, with respect to a Plan, as to which PBGC has not by regulation waived the requirement
of Section 4043(a) of ERISA that it be notified within 30 days of the occurrence of such event
(provided that a failure to meet the minimum funding standard of Section 412 of the Code or Section
302 of ERISA, including, without limitation, the failure to make on or before its due date a
required installment under Section 412(m) of the Code or Section 302(e) of ERISA, shall be a
reportable event regardless of the issuance of any waivers in accordance with Section 412(d) of the
Code); and any request for a waiver under Section 412(d) of the Code for any Plan;

                    (2) the distribution under Section 4041 of ERISA of a notice of intent to terminate any Plan
or any action taken by Borrower, Operating Lessee or an ERISA Affiliate to terminate any Plan;

                    (3) the institution by PBGC of proceedings under Section 4042 of ERISA for the termination of,
or the appointment of a trustee to administer, any Plan, or the receipt by any Borrower, Operating
Lessee or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken
by PBGC with respect to such Multiemployer Plan;

                    (4) the complete or partial withdrawal from a Multiemployer Plan by any Borrower, Operating
Lessee or any ERISA Affiliate that results in liability under Section 4201 or 4204 of ERISA
(including the obligation to satisfy secondary liability as a result of a purchaser default) or the
receipt by any Borrower, Operating Lessee or any ERISA Affiliate of notice from a Multiemployer
Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA or that
it intends to terminate or has terminated under Section 4041A of ERISA;

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                    (5) the institution of a proceeding by a fiduciary of any Multiemployer Plan against any
Borrower, Operating Lessee or any ERISA Affiliate to enforce Section 515 of ERISA, which proceeding
is not dismissed within thirty (30) days;

                    (6) the adoption of an amendment to any Plan that, pursuant to Section 401(a)(29) of the Code
or Section 307 of ERISA, would result in the loss of tax-exempt
status of the trust of which such Plan is a part if any Borrower, Operating Lessee or an ERISA
Affiliate fails to timely provide security to the Plan in accordance with the provisions of said
Sections; and

                    (7) the imposition of a lien or a security interest in connection with a Plan.

               (ii) No Borrower or Operating Lessee shall engage in any transaction which would cause any
obligation, or action taken or to be taken, hereunder (or the exercise by Lender of any of its
rights under the Note, this Agreement or the other Loan Documents) to be a non-exempt (under a
statutory or administrative class exemption) prohibited transaction under the Employee Retirement
Income Security Act of 1974, as amended.

               (iii) Each applicable Borrower and Operating Lessee hereby certifies and shall deliver to
Lender such certifications or other evidence from time to time throughout the term of the Loan, as
reasonably requested by Lender, that (A) such Borrower or Operating Lessee is not an “employee
benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, a “plan”
as defined in Section 4975 of the Code, which is subject to Section 4975 of the Code, or a
“governmental plan” within the meaning of Section 3(32) of ERISA; (B) such Borrower or Operating
Lessee is not subject to state statutes regulating investments and fiduciary obligations with
respect to governmental plans or, if such Borrower is subject to such statutes, such statutes do
not in any manner affect the ability of the such Borrower or Operating Lessee to perform its
obligations under the Loan Documents or the ability of Lender to enforce any and all of its rights
under the Loan Agreement; and (C) one or more of the following circumstances is true: (i) Equity
interests in such Borrower or Operating Lessee are publicly offered securities, within the meaning
of 29 C.F.R. §2510.3-101(b)(2); (ii) Less than twenty-five percent of each outstanding class of
equity interests in such Borrower or Operating Lessee are held by “benefit plan investors” within
the meaning of 29 C.F.R. §2510.3-101(f)(2); or (iii) such Borrower or Operating Lessee qualifies as
an “operating company” within the meaning of 29 C.F.R. §2510.3-101(c).

               (iv) If an investor or equity owner in any Borrower or Operating Lessee is (directly or
indirectly) a plan that is not subject to Title I of ERISA or Section 4975 of the Code, but is
subject to the provisions of any federal, state, local, non-U.S. or other laws or regulations that
are similar to those portions of ERISA or the Code (collectively, “Other Plan Laws”), the
assets of such Borrower or Operating Lessee shall not constitute the assets of such plan under such
Other Plan Laws.

          (r) Single Purpose Entity. Each Borrower, each SPE Equity Owner and Operating Lessee
shall at all times be a Single-Purpose Entity.

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          (s) Trade Indebtedness. Each Borrower and Operating Lessee will pay its trade
payables within sixty (60) days of the date incurred, unless such Borrower or Operating Lessee is
in good faith contesting such Borrower’s obligation to pay such trade payables in a manner
reasonably satisfactory to Lender (which may include Lender’s requirement that such Borrower or
Operating Lessee post security with respect to the contested trade payable).

          (t) Capital Improvements and Environmental Remediation. Borrowers shall, within time
periods set forth on Exhibit B hereto, perform the repairs and environmental remediation to
the Individual Properties itemized on Exhibit B hereto.

          (u) Property Improvement Requirements. Borrowers shall, within two (2) years after
the Closing Date, complete all work set forth on Exhibit I, subject to any extension
permitted under the applicable Franchise Agreement or otherwise permitted by the Franchisor.

          (v) Compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money Laundering Laws.
Each Borrower and Operating Lessee shall comply with all Legal Requirements relating to money
laundering, anti-terrorism, trade embargoes and economic sanctions, now or hereafter in effect.
Upon Lender’s request from time to time during the term of the Loan, each Borrower and Operating
Lessee shall certify in writing to Lender that such Borrower’s or Operating Lessee’s, as
applicable, representations, warranties and obligations under Section 4.1(oo) and this
Section remain true and correct and have not been breached. Each Borrower and Operating Lessee
shall immediately notify Lender in writing if any representations, warranties or covenants are no
longer true or have been breached or if such Borrower or Operating Lessee has a reasonable basis to
believe that they may no longer be true or have been breached. In connection with such an event,
such Borrower or Operating Lessee shall comply with all Legal Requirements and directives of
Governmental Authorities and, at Lender’s request, provide to Lender copies of all notices, reports
and other communications exchanged with, or received from, Governmental Authorities relating to
such an event. Borrowers and Operating Lessee shall also promptly reimburse to Lender any and all
costs and expenses incurred by Lender in evaluating the effect of such an event on the Loan and
Lender’s interest in the collateral for the Loan, in obtaining any necessary license from
Governmental Authorities as may be necessary for Lender to enforce its rights under the Loan
Documents, and in complying with all Legal Requirements applicable to Lender as the result of the
existence of such an event and for any penalties or fines imposed upon Lender as a result thereof.

ARTICLE 6

NEGATIVE COVENANTS

     Section 6.1. Borrower Negative Covenants. Each Borrower and Operating Lessee
covenants and agrees that, until payment in full of the Indebtedness, it will not do, directly or
indirectly, any of the following unless Lender consents thereto in writing:

          (a) Liens on the Property. Incur, create, assume, become or be liable in any manner
with respect to, or permit to exist, any Lien with respect to any Individual Property or any
portion thereof, except: (i) Liens in favor of Lender, and (ii) the Permitted Encumbrances.

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          (b) Transfer. Except for any Permitted Transfer or as expressly permitted by or
pursuant to this Agreement, any Mortgage or the other Loan Documents (except as otherwise approved
by Lender in writing in Lender’s discretion), (i) allow any Transfer to occur or (ii) modify,
change, supplement, alter, amend, fail to comply with, in any material respect, or terminate the
Management Agreement or any Operating Lease, or enter into a new Management Agreement or any
Operating Lease, with respect to any Individual Property except as permitted under this Agreement.

          (c) Other Borrowings. Incur, unsecured trade payables and operational debt (not
evidenced by a promissory note) incurred in the ordinary course of business relating to the
ownership and operation of the applicable Borrower’s and Operating Lessee’s Individual Properties
which when aggregated with the unsecured trade payables of all other Borrowers and Operating Lessee
do not exceed, at any time, a maximum amount of two percent (2.0%) of the Loan Amount and are paid
within sixty (60) days of the date incurred, create, assume, become or be liable in any manner with
respect to Other Borrowings, other than the FF&E Financing.

          (d) Change In Business. Cease to be a Single-Purpose Entity or make any material
change in the scope or nature of its business objectives, purposes or operations, or undertake or
participate in activities other than the continuance of its present business.

          (e) Debt Cancellation. Cancel or otherwise forgive or release any material claim or
debt owed to the Borrower by any Person, except for adequate consideration or in the ordinary
course of such Borrower’s and Operating Lessee’s business or otherwise if such cancellation,
release or forgiveness is prudent and commercially reasonable.

          (f) Affiliate Transactions. Except as otherwise permitted under the Loan Documents,
enter into, or be a party to, any transaction with an Affiliate of any Borrower or Operating
Lessee, except in the ordinary course of business and on terms which are no less favorable to such
Borrower, Operating Lessee or such Affiliate than would be obtained in a comparable arm’s length
transaction with an unrelated third party, and, if the amount to be paid to the Affiliate pursuant
to the transaction or series of related transactions is greater than Fifty Thousand Dollars
($50,000.00) (determined annually on an aggregate basis) fully disclosed to Lender in advance.

          (g) Creation of Easements. Create, or permit any Individual Property or any part
thereof to become subject to, any easement, license or restrictive covenant, other than a Permitted
Encumbrance. Without limiting the generality of the immediately preceding sentence, no Borrower
shall enter into, consent to, grant, amend, modify, restate or supplement any document, instrument
or agreement affecting, related to or impacting upon any Individual Property, the title thereto or
any portion or aspect thereof, including, without limitation, any easement, reciprocal easement
agreement, or any declaration of easements or covenants other than a Permitted Encumbrance.

          (h) Certain Restrictions. Enter into any agreement which expressly restricts the
ability of any Borrower or Operating Lessee to enter into amendments, modifications or waivers of
any of the Loan Documents.

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          (i) Issuance of Equity Interests. Issue or allow to be created any stocks or shares
or shareholder, partnership or membership interests, as applicable, or other ownership interests
other than the stocks, shares, shareholder, partnership or membership interests and other ownership
interests which are outstanding or exist on the Closing Date or any security or other instrument
which by its terms is convertible into or exercisable or exchangeable for stock, shares,
shareholder, partnership or membership interests or other ownership interests in any Borrower or
Operating Lessee unless otherwise permitted in this Agreement. No Borrower or Operating Lessee
shall allow to be issued or created any stock in any Borrower’s or Operating Lessee’s general
partner or managing member, as applicable, other than the stock which is outstanding or existing on
the Closing Date or any security or other instrument which by its terms is convertible
into or exercisable or exchangeable for any stock in such Borrower’s general partner or
managing member, as applicable.

          (j) Assignment of Licenses and Permits. Assign or transfer any of its interest in any
Permits pertaining to any Individual Property, or assign, transfer or remove or permit any other
Person to assign, transfer or remove any records pertaining to any Individual Property without
Lender’s prior written consent which consent may be granted or refused in Lender’s discretion.

          (k) Place of Business. Change its chief executive office or its principal place of
business or place where its books and records are kept without giving Lender at least thirty (30)
days’ prior written notice thereof and promptly providing Lender such information as Lender may
reasonably request in connection therewith.

          (l) Plaza Tower Leases. Terminate, amend, modify or otherwise change the Plaza Tower
Leases without Lender’s prior written consent in any material respect.

ARTICLE 7

DEFAULTS

     Section 7.1. Event of Default. The occurrence of one or more of the following events
shall be an “Event of Default” hereunder:

          (a) if Borrower fails to (i) make any scheduled payment of principal, interest, or amounts due
under Article 2 on any Payment Date, or (ii) pay any other amount payable pursuant to the Loan
Documents within 5 days after written notice from Lender (provided such notice and cure period
shall not apply to the payment due on the Maturity Date)

          (b) if the Borrowers fail to pay the outstanding Indebtedness on the Maturity Date;

          (c) if on any Payment Date the Borrowers fail to pay the Tax and Insurance Monthly
Installment;

          (d) the occurrence of the events identified elsewhere in the Loan Documents as constituting an
“Event of Default”;

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          (e) any breach of Sections 2.11, Section 2.14, Section 5.1(r),
Section 5.1(t), Section 5.1(u), Section 5.1(v), Section 6.1(b);

          (f) if any representation or warranty made herein by Borrowers or Operating Lessee or in any
other Loan Document, or in any report, certificate, financial statement or other Instrument,
agreement or document furnished by any Borrower or Operating Lessee in connection with this
Agreement, the Note or any other Loan Document executed and delivered by such Borrower or Operating
Lessee, as applicable, shall be false in any material respect as of the date such representation or
warranty was made or remade;

          (g) if any Borrower, any of such Borrower’s partners or members, as applicable, Operating
Lessee, or any SPE Equity Owner makes an assignment for the benefit of creditors;

          (h) if a receiver, liquidator or trustee shall be appointed for any Borrower, any of such
Borrower’s partners, members or shareholders, as applicable, or any SPE Equity Owner or if any
Borrower, any of such Borrower’s partners, members or shareholders, as applicable, Operating Lessee
or any SPE Equity Owner shall be adjudicated as bankrupt or insolvent, or if any petition for
bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar
federal or state law, shall be filed by or against, consented to, or acquiesced in by such
Borrower, any of such Borrower’s partners, members or shareholders, as applicable, Operating Lessee
or any SPE Equity Owner or if any proceeding for the dissolution or liquidation of such Borrower,
any of such Borrower’s partners, members or shareholders, as applicable, Operating Lessee or any
SPE Equity Owner shall be instituted; provided, however, that if such appointment, adjudication,
petition or proceeding was involuntary and not consented to by such Borrower, any of such
Borrower’s partners, members or shareholders, as applicable, Operating Lessee or any SPE Equity
Owner as the case may be, upon the same not being discharged, stayed or dismissed within ninety
(90) days; or if such Borrower, any of such Borrower’s partners, members or shareholders, as
applicable, Operating Lessee or any SPE Equity Owner shall generally not be paying its debts as
they become due;

          (i) except as otherwise permitted by the Loan Documents, if any Borrower or Operating Lessee
attempts to delegate its obligations or assign its rights under this Agreement, any of the other
Loan Documents or any interest herein or therein;

          (j) if any provision of any organizational document of any Borrower, Operating Lessee or any
SPE Equity Owner is amended or modified in any respect, or if any Borrower, Operating Lessee, any
SPE Equity Owner or any of their respective partners, members, or shareholders as applicable, fails
to perform or enforce the provisions of such organizational documents or attempts to dissolve any
Borrower, Operating Lessee or any SPE Equity Owner; or if any Borrower, Operating Lessee or any SPE
Equity Owner or any of their respective partners, members or shareholders, as applicable, breaches
any of the covenants set forth in Sections 5.1(r), or 6.1(d);

          (k) if any Borrower, SPE Equity Owner or Operating Lessee enters into any interest rate cap
protection agreement, interest rate swap, interest rate hedge agreement or any

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similar agreement
other than the Interest Rate Cap Agreement or unless consented to by Lender in its reasonable
discretion;

          (l) if an event or condition specified in Section 5.1(q) shall occur or exist with
respect to any Plan, Multiemployer Plan or plan and, as a result of such event or condition,
together with all other such events or conditions, Borrower or any ERISA Affiliate or any affiliate
shall incur or in the opinion of Lender shall be reasonably likely to incur a liability to a Plan,
a Multiemployer Plan, PBGC or plan (or any combination of the foregoing) which would constitute, in
the determination of Lender, a Material Adverse Effect;

          (m) if without Lender’s prior written consent (A) any Manager resigns or is removed or is
replaced, (B) intentionally omitted, (C) any Management Agreement is entered
into for any Individual Property or (D) there is any change in or termination of any
Management Agreement for any Individual Property;

          (n) if without Lender’s prior written consent or except as permitted by the Loan Documents (A)
any Franchisor resigns or is removed or is replaced, or (B) any Franchise Agreement is entered into
for any Individual Property or (C) there is any material change in or termination of any Franchise
Agreement for any Individual Property;

          (o) if without Lender’s prior written consent or except as permitted by the Loan Documents (A)
any Operating Lessee resigns or is removed or is replaced, (B) intentionally omitted, (C) any
Operating Lease is entered into for any Individual Property or (D) there is any change in or
termination of any Operating Lease;

          (p) if any Borrower or Operating Lessee shall be in default under any of the other
obligations, agreements, undertakings, terms, covenants, provisions or conditions of this
Agreement, the Note, any Mortgage or the other Loan Documents, not otherwise referred to in this
Section 7.1, for ten (10) days after written notice to any Borrower from Lender or its
successors or assigns, in the case of any default which can be cured by the payment of a
commercially reasonable sum of money or for thirty (30) days after written notice from Lender or
its successors or assigns, in the case of any other default (unless otherwise provided herein or in
such other Loan Document); provided, however, that if such non-monetary default
under this subparagraph is susceptible of cure but cannot reasonably be cured within such
thirty (30) day period and provided further that such Borrower shall have commenced to cure such
default within such thirty (30) day period and thereafter diligently and expeditiously proceeds to
cure the same, such thirty (30) day period shall be extended for such time as is reasonably
necessary for such Borrower in the exercise of due diligence to cure such default, but in no event
shall such period exceed ninety (90) days after the original notice from Lender;

          (q) if any Operating Lessee is in default beyond any applicable notice, grace or cure period
under the applicable Operating Lease;

          (r) if an “Event of Default” shall occur under any Subordination, Attornment and Security
Agreement;

          (s) if any Borrower or Operating Lessee breaches Section 9(b) of any Collection
Account Agreement;

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          (t) if any of the assumptions set forth in that certain non-consolidation opinion from the
Borrowers’ counsel to Lender dated as of the date hereof shall be untrue in any material respect;
and

          (u) Borrower’s failure to comply with the covenants set forth in Section 5.1(u) of
this Agreement.

     Section 7.2. Remedies.

          (a) Upon the occurrence and during the continuance of an Event of Default, all or any one or
more of the rights, powers and other remedies available to Lender against Borrowers or any Borrower
under this Agreement, the Note, any Mortgages or any of the other
Loan Documents, or at law or in equity may be exercised by Lender at any time and from time to
time (including, without limitation, the right to accelerate and declare the outstanding principal
amount, unpaid interest, Default Rate interest, Late Charges, prepayment premium, if any, and any
other amounts owing by such Borrower to be immediately due and payable), without notice or demand,
whether or not all or any portion of the Indebtedness shall be declared due and payable, and
whether or not Lender shall have commenced any foreclosure proceeding or other action for the
enforcement of its rights and remedies under any of the Loan Documents with respect to all or any
portion of the Collateral. Any such actions taken by Lender shall be cumulative and concurrent and
may be pursued independently, singly, successively, together or otherwise, at such time and in such
order as Lender may determine in its discretion, to the fullest extent permitted by law, without
impairing or otherwise affecting the other rights and remedies of Lender permitted by law, equity
or contract or as set forth herein or in the other Loan Documents. Notwithstanding anything
contained to the contrary herein, the outstanding principal amount, unpaid interest, Default Rate
interest, Late Charges, prepayment premium, if any, and any other amounts owing by any Borrower
shall be accelerated and immediately due and payable, without any election by Lender upon the
occurrence of an Event of Default described in Section 7.1(g) or Section 7.1 (h).
Notwithstanding that this Agreement may refer to a continuing Event of Default, and without
limiting any Borrower’s right to cure a Default which may, with the passage of time, become an
Event of Default, no Borrower shall have any right pursuant to this Agreement to cure any Event of
Default unless permitted by Lender in writing.

     Section 7.3. Remedies Cumulative. The rights, powers and remedies of Lender under
this Agreement shall be cumulative and not exclusive of any other right, power or remedy which
Lender may have against any Borrower or any other Person pursuant to this Agreement or the other
Loan Documents executed by or with respect to any Borrower or any other Person, or existing at law
or in equity or otherwise. Lender’s rights, powers and remedies may be pursued singly,
concurrently or otherwise, at such time and in such order as Lender may determine in Lender’s
discretion. No delay or omission to exercise any remedy, right or power accruing upon an Event of
Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but
any such remedy, right or power may be exercised from time to time and as often as may be deemed
expedient. A waiver of any Default or Event of Default shall not be construed to be a waiver of
any subsequent Default or Event of Default or to impair any remedy, right or power consequent
thereon. Any and all of Lender’s rights with respect to the Collateral shall continue unimpaired,
and each Borrower shall be and remain obligated in accordance with the terms hereof,
notwithstanding (i) the release or substitution of Collateral at any time, or of

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any rights or
interest therein or (ii) any delay, extension of time, renewal, compromise or other indulgence
granted by Lender in the event of any Default or Event of Default with respect to the Collateral or
otherwise hereunder. Notwithstanding any other provision of this Agreement, but subject to
Section 8.14 hereof, Lender reserves the right to seek a deficiency judgment or preserve a
deficiency claim, in connection with the foreclosure of any or all Mortgages, to the extent
necessary to foreclose on other parts of the Collateral.

     Section 7.4. Lender’s Right to Perform. If any Borrower fails to perform any covenant
or obligation contained herein and such failure shall continue for a period of (5) five Business
Days after such Borrower’s receipt of written notice thereof from Lender, without in any way
limiting Section 7.1 hereof, Lender may, but shall have no obligation to, itself perform,
or cause performance of, such covenant or obligation, and the expenses of Lender incurred in
connection
therewith shall be payable by Borrowers to Lender upon demand. Notwithstanding the foregoing,
Lender shall have no obligation to send notice to such Borrower of any such failure.

ARTICLE 8

MISCELLANEOUS

     Section 8.1. Survival. Subject to Section 4.2, this Agreement and all
covenants, agreements, representations and warranties made herein and in the certificates delivered
pursuant hereto shall survive the execution and delivery of this Agreement and the execution and
delivery by Borrowers to Lender of the Note, and shall continue in full force and effect so long as
any portion of the Indebtedness is outstanding and unpaid. Whenever in this Agreement any of the
parties hereto is referred to, such reference shall be deemed to include the successors and assigns
of any such party. All covenants, promises and agreements in this Agreement contained, by or on
behalf of Borrower, shall inure to the benefit of the respective successors and assigns of Lender.
Nothing in this Agreement or in any other Loan Document, express or implied, shall give to any
Person other than the parties and the holder(s) of the Note and the other Loan Documents, and their
legal representatives, successors and assigns, any benefit or any legal or equitable right, remedy
or claim hereunder.

     Section 8.2. Lender’s Discretion. Whenever pursuant to this Agreement or any other
Loan Document, Lender exercises any right, option or election given to Lender to approve or
disapprove, or consent or withhold consent, or any arrangement or term is to be satisfactory to
Lender or is to be in Lender’s discretion, the decision of Lender to approve or disapprove, consent
or withhold consent, or to decide whether arrangements or terms are satisfactory or not
satisfactory or acceptable or not acceptable to Lender in Lender’s discretion, shall (except as is
otherwise specifically herein provided) be in the sole and absolute discretion of Lender. Whenever
pursuant to this Agreement or any other Loan Document (a) the Rating Agencies are given any right
to approve or disapprove, (b) confirmation is required from the Rating Agencies that an action will
not result in a downgrade or withdrawal of the ratings in a Secondary Market Transaction or (c) any
arrangement or term is to be satisfactory to the Rating Agencies, the approval of Lender shall be
substituted therefore prior to the date that all or any portion of the Loan is included in a REMIC,
among other things, Lender’s reasonable determination of Rating Agency criteria.

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     Section 8.3. Governing Law.

          (a) The proceeds of the Note delivered pursuant hereto were disbursed from California, which
State the parties agree has a substantial relationship to the parties and to the underlying
transaction embodied hereby, and in all respects, including, without limitation, matters of
construction, validity and performance, this Agreement and the obligations arising hereunder shall
be governed by, and construed in accordance with, the laws of the State of California applicable to
contracts made and performed in such State and any applicable law of the United States of America.
To the fullest extent permitted by law, each Borrower hereby unconditionally and irrevocably waives
any claim to assert that the law of any other jurisdiction governs this Agreement and the Note.

          (b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST ANY BORROWER ARISING OUT OF OR RELATING TO
THIS AGREEMENT SHALL BE
INSTITUTED IN ANY FEDERAL OR STATE COURT IN CALIFORNIA, OR IN ANY FEDERAL OR STATE COURT IN
THE JURISDICTION IN WHICH THE COLLATERAL IS LOCATED, AND EACH BORROWER WAIVES ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY EACH SUIT, ACTION OR PROCEEDING, AND
EACH BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY EACH COURT IN ANY SUIT, ACTION
OR PROCEEDING. EACH BORROWER DOES HEREBY DESIGNATE AND APPOINT CORPORATION SERVICE COMPANY, 2730
GATEWAY OAKS DRIVE, SUITE 100, SACRAMENTO, CALIFORNIA 95833, ATTN: JEROME SUAREZ, AS ITS AUTHORIZED
AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN
ANY EACH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT AND AGREES THAT SERVICE OF
PROCESS UPON SAID AGENT AT SAID ADDRESS (OR AT EACH OTHER OFFICE AS MAY BE DESIGNATED BY EACH
BORROWER FROM TIME TO TIME IN ACCORDANCE WITH THE TERMS HEREOF) WITH A COPY TO EACH BORROWER AT ITS
PRINCIPAL EXECUTIVE OFFICES, ATTENTION: GENERAL COUNSEL AND WRITTEN NOTICE OF SAID SERVICE OF EACH
BORROWER MAILED OR DELIVERED TO EACH BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN
EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER, IN ANY EACH SUIT, ACTION OR PROCEEDING.
EACH BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT
HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT
(WHICH OFFICE SHALL BE DESIGNATED AS THE ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY
DESIGNATE EACH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE OR IS DISSOLVED
WITHOUT LEAVING A SUCCESSOR.

     Section 8.4. Modification, Waiver in Writing. No modification, amendment, extension,
discharge, termination or waiver of any provision of this Agreement, the Note or any other Loan
Document, or consent to any departure by any Borrower therefrom, shall in any event be effective
unless the same shall be in a writing signed by the party against whom enforcement is sought, and
then such waiver or consent shall be effective only in the specific instance, and for the purpose,
for which given. Except as otherwise expressly provided herein, no notice to or

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demand on any
Borrower shall entitle such Borrower to any other or future notice or demand in the same, similar
or other circumstances.

     Section 8.5. Delay Not a Waiver. Neither any failure nor any delay on the part of
Lender in insisting upon strict performance of any term, condition, covenant or agreement, or
exercising any right, power, remedy or privilege hereunder, or under the Note, or of any other Loan
Document, or any other instrument given as security herefore, shall operate as or constitute a
waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise,
or the exercise of any other right, power, remedy or privilege. In particular, and not by way of
limitation, by accepting payment after the due date of any amount payable under this Agreement, the
Note or any other Loan Document, Lender shall not be deemed to have waived any right either to
require prompt payment when due of all other amounts due under this Agreement, the Note or the
other Loan Documents, or to declare a default for failure to effect prompt payment of any such
other amount.

     Section 8.6. Notices. All notices, consents, approvals and requests required or
permitted hereunder or under any other Loan Document shall be given in writing and shall be
effective for all purposes if hand delivered or sent by (a) hand delivery, with proof of attempted
delivery, (b) certified or registered United States mail, postage prepaid, (c) expedited prepaid
delivery service, either commercial or United States Postal Service, with proof of attempted
delivery, or (d) by telecopier (with answerback acknowledged) provided that such telecopied notice
must also be delivered by one of the means set forth in (a), (b) or (c) above, addressed to the
parties as follows:

	 	 	 	 	 
	 

	 	If to Lender:
	 	Countrywide Commercial Real Estate Finance, Inc.
	 

	 	 	 	4500 Park Granada
	 

	 	 	 	Calabasas, California 91302
	 

	 	 	 	Attn: Marilyn Marincas
	 

	 	 	 	Telecopier: (818) 225-3898
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Dechert LLP
	 

	 	 	 	One Market Street
	 

	 	 	 	Steuart Tower, Suite 2500
	 

	 	 	 	San Francisco, California 94105
	 

	 	 	 	Attn: Joseph B. Heil, Esquire
	 

	 	 	 	Telecopier: 415-262-4555
	 
	 	 	 	 
	 

	 	If to Borrower:
	 	Ashford Walnut Creek LP
	 

	 	 	 	c/o Ashford Hospitality Trust
	 

	 	 	 	14185 Dallas Parkway
	 

	 	 	 	Suite 1100
	 

	 	 	 	Dallas, Texas 75254
	 

	 	 	 	Attn: David Brooks, Esquire
	 

	 	 	 	Telecopier: (972) 490-9605

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	 	with a copy to:
	 	Akin Gump Strauss Hauer & Feld LLP
	 

	 	 	 	1700 Pacific Avenue
	 

	 	 	 	Suite 4100
	 

	 	 	 	Dallas, Texas 75201
	 

	 	 	 	Attn: Carl B. Lee, Esquire
	 

	 	 	 	Telecopier: (214) 969-4343

A party receiving a notice which does not comply with the technical requirements for notice under
this Section 8.6 may elect to waive any deficiencies and treat the notice as having been
properly given. A notice shall be deemed to have been given: (a) in the case of hand delivery, at
the time of delivery; (b) in the case of registered or certified mail, when delivered or the first
attempted delivery on a Business Day; (c) in the case of expedited prepaid delivery upon the first
attempted delivery on a Business Day; or (d) in the case of telecopier, upon receipt of answerback
confirmation, provided that such telecopied notice was also delivered as required in this
Section 8.6. All notices given by Lender hereunder that are effective against any Borrower
shall be deemed effective against all Borrowers. Any notice given to Lender by any Borrower
hereunder shall be deemed binding against all Borrowers.

     Section 8.7. Trial By Jury. EACH BORROWER AND LENDER, TO THE FULLEST EXTENT THAT THEY
MAY LAWFULLY DO SO, HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING, INCLUDING, WITHOUT
LIMITATION, ANY TORT ACTION, BROUGHT BY ANY PARTY HERETO WITH RESPECT TO THIS AGREEMENT, THE NOTE
OR THE OTHER LOAN DOCUMENTS.

     Section 8.8. Headings. The Article and Section headings in this Agreement are
included herein for convenience of reference only and shall not constitute a part of this Agreement
for any other purpose.

     Section 8.9. Assignment. Lender shall have the right to assign in whole or in part
this Agreement and/or any of the other Loan Documents and the obligations hereunder or thereunder
to any Person and to participate all or any portion of the Loan evidenced hereby, including without
limitation, any servicer or trustee in connection with a Secondary Market Transaction. Lender
shall provide any Borrower with written notice of any such assignment; provided,
however, that such notice shall not be a condition of Lender’s right to assign this
Agreement and/or any of the Loan Documents and the failure to deliver such notice shall not
constitute a default under this Loan Agreement. At the option of Lender, the Loan may be serviced
by a servicer and\or trustee selected by Lender and Lender may delegate all or any portion of its
responsibilities under this Agreement and the other Loan Documents to such servicer and\or trustee
pursuant to a servicing agreement between Lender and such servicer and\or trustee.

     Section 8.10. Severability. Wherever possible, each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

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     Section 8.11. Preferences. Lender shall have no obligation to marshal any assets in
favor of any Borrower or any other party or against or in payment of any or all of the obligations
of any Borrower pursuant to this Agreement, the Note or any other Loan Document. Lender shall have
the continuing and exclusive right to apply or reverse and reapply any and all payments by any
Borrower to any portion of the obligations of any Borrower hereunder. To the extent any Borrower
makes a payment or payments to Lender for any Borrower’s benefit, which payment or proceeds or any
part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or
required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or
federal law, common law or equitable cause, then, to the extent of such payment or proceeds
received, the obligations hereunder or part thereof intended to be satisfied shall be revived and
continue in full force and effect, as if such payment or proceeds had not been received by Lender.

     Section 8.12. Waiver of Notice. No Borrower shall be entitled to any notices of any
nature whatsoever from Lender except with respect to matters for which this Agreement or the other
Loan Documents specifically and expressly provide for the giving of notice by Lender to such
Borrower and except with respect to matters for which such Borrower is not, pursuant to applicable
Legal Requirements, permitted to waive the giving of notice. Each Borrower hereby expressly waives
the right to receive any notice from Lender with respect to any matter for which
this Agreement or the other Loan Documents does not specifically and expressly provide for the
giving of notice by Lender to such Borrower.

     Section 8.13. Remedies of Borrower. In the event that a claim or adjudication is made
that Lender or its agents, has acted unreasonably or unreasonably delayed acting in any case where
by law or under this Agreement, the Note, any Mortgage or the other Loan Documents, Lender or such
agent, as the case may be, has an obligation to act reasonably or promptly, Borrower agrees that
neither Lender nor its agents, shall be liable for any monetary damages, and each Borrower’s sole
remedies shall be limited to commencing an action seeking injunctive relief or declaratory
judgment. The parties hereto agree that any action or proceeding to determine whether Lender has
acted reasonably shall be determined by an action seeking declaratory judgment.

     Section 8.14. Exculpation. Except as otherwise set forth in this Section 8.14
and Section 4.2 to the contrary, Lender shall not enforce the liability and obligation of
any Borrower or Operating Lessee to perform and observe the obligations contained in this
Agreement, the Note, any Mortgage or any of the other Loan Documents executed and delivered by any
Borrower or Operating Lessee except that Lender may pursue any power of sale, bring a foreclosure
action, action for specific performance, action for money judgment, or other appropriate action or
proceeding (including, without limitation, to obtain a deficiency judgment) against any or all
Borrowers, or Operating Lessee or any other Person solely for the purpose of enabling Lender to
realize upon (a) any Collateral, and (b) any Rents to the extent (x) received by any Borrower or
any Manager (or any of their affiliates), after the occurrence of an Event of Default or (y)
distributed to any Borrower, Operating Lessee or any Manager, or their respective shareholders, or
partners or members, as applicable, or affiliates during or with respect to any period for which
Lender did not receive the full amounts it was entitled to receive as prepayments of the Loan
pursuant to Section 2.6(b) (all Rents covered by clauses (x) and (y) being
hereinafter referred to as the “Recourse Distributions”) and (c) any other collateral given
to

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Lender under the Loan Documents ((a), (b), and (c) collectively, the “Default
Collateral”); provided, however, that any judgment in any action or
proceeding shall be enforceable only to the extent of any Default Collateral. The provisions of
this Section 8.14 shall not, however, (a) impair the validity of the Indebtedness evidenced
by the Loan Documents or in any way affect or impair the Liens of any Mortgage or any of the other
Loan Documents or the right of Lender to foreclose any Mortgage following an Event of Default; (b)
impair the right of Lender to name any Person as a party defendant in any action or suit for
judicial foreclosure and sale under any Mortgage; (c) affect the validity or enforceability of the
Note, any Mortgage or the other Loan Documents; (d) impair the right of Lender to obtain the
appointment of a receiver; (e) impair the right of Lender to bring suit for and recover against any
Person any damages, losses, expenses, liabilities or costs resulting from fraud, willful
misrepresentation, waste of all or any portion of any Individual Property, or wrongful removal or
disposal of all or any portion of any Individual Property by any Person in connection with this
Agreement, the Note, any Mortgage or the other Loan Documents; (f) impair the right of Lender to
obtain the Recourse Distributions received by any Person; (g) impair the right of Lender to bring
suit for and recover against any Person with respect to any misappropriation of security deposits
or Rents collected more than one (1) month in advance; (h) impair the right of Lender to obtain
Insurance Proceeds or Condemnation Proceeds due to Lender pursuant to any Mortgage; (i) impair the
right of Lender to enforce the provisions of Sections 4.1(v) or 5.1(d) through
5.1(g), inclusive of this Agreement, Section 2.8 of each Mortgage or the
Environmental Guaranty even after repayment in full by any Borrower of
the Indebtedness; (j) prevent or in any way hinder Lender from exercising, or constitute a
defense, or counterclaim, or other basis for relief in respect of the exercise of, any other remedy
against any or all of the Collateral securing the Note as provided in the Loan Documents; (k)
impair the right of Lender to bring suit for and recover against any person with respect to any
misapplication of any funds (including, without limitation, insurance proceeds and condemnation
proceeds); (l) impair the right of Lender to sue for, seek or demand a deficiency judgment against
any Person solely for the purpose of foreclosing on any Collateral or any part thereof, or
realizing upon the Default Collateral, (m) impair the right of Lender to bring suit for and recover
against any Person any damages, losses, expenses, liabilities or costs in the event that Borrower
or any Operating Lessee shall take any action of any kind or nature whatsoever, either directly or
indirectly to oppose, impede, obstruct, challenge, hinder, frustrate, enjoin or otherwise interfere
with (A) Lender’s termination of any Operating Lease with any Operating Lessee, (B) Lender or the
party acquiring any Individual Property following the occurrence of a foreclosure or deed in lieu
thereof (in full substitution of the applicable Operating Lessee) being deemed the “Owner” under
the Management Agreement, (C) the execution, delivery or effectiveness of a new Management
Agreement directly between Lender or the party acquiring any Individual Property following a
foreclosure or deed in lieu thereof and applicable Manager or (D) any payment or other transfer by
any Manager of funds which would otherwise be paid to any Operating Lessee under any Operating
Lease directly to Lender or the party acquiring any Individual Property following the occurrence of
a foreclosure or deed in lieu thereof, in each case after or as a result of any automatic
termination of the applicable Operating Lease or of Lender exercising its right to terminate the
Operating Lease, in each case pursuant to the applicable Subordination, Attornment and Security
Agreement and this Agreement, or shall, either directly or indirectly, cause or permit any other
person to take any action which, if taken by such Operating Lessee would constitute an event
described in this Section 8.14(m), or (n) impair the right of Lender to bring suit for and
recover against any Person with respect to any breach of Section 9(b) of any

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Collection Account
Agreement (the foregoing clauses (a) through (n) each, a “Recourse Liability” and
collectively, the “Recourse Liabilities”); provided, however, that
any deficiency judgment referred to in this Section 8.14(m) shall be enforceable only to
the extent of any of the Default Collateral.

The preceding provisions of this Section shall be inapplicable to any Person and the Indebtedness
shall be fully recourse to Borrowers in the event that one or more of the following occurs (each, a
“Full Recourse Event”): (i) any petition for bankruptcy, reorganization or arrangement
pursuant to federal or state law against any Borrower or Operating Lessee shall be filed by any
Borrower, Operating Lessee, or any Affiliate of any Borrower or Operating Lessee, (ii) if an
involuntary bankruptcy or other insolvency proceeding is commenced against any Borrower or
Operating Lessee (by a party other than Lender) but only if such Borrower has consented or
acquiesced to such proceeding or if Borrower, Operating Lessee or any Affiliate of Borrower or
Operating Lessee has acted in concert with, colluded or conspired with the party to cause the
filing thereof or has consented to or acquiesced thereto, (iii) if any Borrower or Operating Lessee
shall institute any proceeding for the dissolution or liquidation of any Borrower or Operating
Lessee, (iv) if any Borrower or Operating Lessee shall make an assignment for the benefit of
creditors, (v) if any Borrower or Operating Lessee shall breach any representation, warranty or
covenant in Section 2.14, Section 4.1(c) (such that such breach was considered by a
court as a factor in the court’s finding for a consolidation of the assets of a Borrower or
Operating Lessee with the assets of another person or entity or as a result thereof Lender suffers
any material damage, cost, liability or expense; provided, however, that in the absence of an
actual
consolidation, recourse may be had against Borrower or Operating Lessee only to the extent of
losses for such breach), 4.1(v), 4.1(aa), 5.1(r) (such that such breach was
considered by a court as a factor in the court’s finding for a consolidation of the assets of a
Borrower or Operating Lessee with the assets of another person or entity or as a result thereof
Lender suffers any material damage, cost, liability or expense; provided, however, that in the
absence of an actual consolidation, recourse may be had against Borrower or Operating Lessee only
to the extent of losses for such breach), or 5.1(v), (v) if any Borrower or Operating
Lessee allows any Transfer to occur in violation of Section 6.1(b) hereof or otherwise
fails to obtain Lender’s prior written consent to any Transfer to the extent any consent is
required in the Loan Document, (vii) any Borrower or Operating Lessee interferes with Lender’s
exercise of any of its rights or remedies hereunder or (viii) if any Borrower or Operating Lessee
breaches any representation or warranty contained in Section 4.1(s).

     Section 8.15. Exhibits Incorporated. The information set forth on the cover, heading
and recitals hereof, and the Exhibits attached hereto, are hereby incorporated herein as a part of
this Agreement with the same effect as if set forth in the body hereof.

     Section 8.16. Offsets, Counterclaims and Defenses. Any assignee of Lender’s interest
in and to this Agreement, the Note, any Mortgage and the other Loan Documents shall take the same
free and clear of all offsets, counterclaims or defenses which are unrelated to the Loan, this
Agreement, the Note, any Mortgage and the other Loan Documents which any Borrower may otherwise
have against any assignor, and no such unrelated counterclaim or defense shall be interposed or
asserted by any Borrower in any action or proceeding brought by any such assignee upon this
Agreement, the Note, any Mortgage and other Loan Documents and any such right to interpose or
assert any such unrelated offset, counterclaim or defense in any such action or

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proceeding is
hereby expressly waived by each Borrower. The Borrower hereby waives the right to assert a
counterclaim in any action or proceeding brought against it by Lender or their agents or otherwise
to offset any obligations to make the payments required by the Loan Documents. No failure by
Lender to perform any of its obligations hereunder shall be a valid defense to, or result in any
offset against, any payments which Borrower is obligated to make under any of the Loan Documents.
The Obligations of Borrower under this Agreement and the other Loan Documents 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, against the Lender by reason of the Lender’s failure to perform its
obligations under this Agreement, including, without limitation, the failure of the Lender to fund
any Additional Advance. Borrowers hereby acknowledge and agree that all or any portion of the
funded portion of the Loan may be subsequently sold in a related securitization or securitizations
and the Borrower shall have no claim against any subsequent holder of all or any portion of the
funded portion of the Loan, including any issuer of any related securitizations or any trustee,
servicer, underwriter, investor or any other party to any such securitizations or any participant
in the Loans, for any Additional Advance not funded by the Lender.

Borrowers acknowledge and agree that the Loan may be participated into or more participations, one
or more of which may be fully funded (collectively, “Funded Participation Interests” and
the holders thereof, together with their successors and assigns, collectively “Funded
Participation Holders”) and one or more of which may not be fully funded (collectively
“Unfunded Participation Interests” and the holders thereof, together with their successors
and assigns, collectively “Unfunded Participation Holders”). In the event that the Loan is
so participated, Borrowers acknowledge and agree that (i) any Additional Advances or any other future
advances under the Loan are and shall remain solely the obligation of the respective Unfunded
Participation Holders (with each such Unfunded Participation Holder liable to the extent of its
Unfunded Participation Interest) on a several basis, (ii) that the Borrowers shall have no right to
assert any claim against any current or subsequent holder of any portion of any Funded
Participation Interest, including any issuer of the related securitization or any trustee,
servicer, underwriter, investor or any other party to such securitization, for any Additional
Advances or other future advances not funded by the holders of the Unfunded Participation Interests
and (iii) that all references in the Loan Agreement to the making of Additional Advances or other
future advances by the “Lender” or to an obligation of the “Lender” to make Additional Advances or
other future advances shall be construed to refer to the making of Additional Advances or other
future advances by the holders of the Unfunded Participation Interests or to an obligation of the
holders of the Unfunded Participation Interests to make Additional Advances or other future
advances. Borrowers acknowledge and agree that there is not and shall not be any current or future
offset, claim or defense of the Borrowers or any other Person, nor shall the obligations of the
Borrowers under the Note or any other Person under any Loan Document, be reduced, discharged or
released, because of, or by reason of, the failure of Lender or of the holders of the participation
interests in the Loan to perform their obligations under or with respect to the related Loan
Documents, including, without limitation, the failure of any holder of the Unfunded Participation
Interests to fund any Additional Advances or other future advances.

Borrowers agree to execute and deliver to Lender (and to cause Guarantor to do same) written
confirmation of the foregoing waivers, acknowledgement and agreements, in the form of

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Exhibit
M, or other form requested by Lender, within five (5) days of receipt of Lender’s written
request therefor, which request may be given from time to time.

     Section 8.17. No Joint Venture or Partnership. Each Borrower and Lender intend that
the relationship created hereunder be solely that of borrower and lender. Nothing herein is
intended to create a joint venture, partnership, tenants-in-common, or joint tenancy relationship
between any Borrower and Lender nor to grant Lender any interest in any Individual Property other
than that of mortgagee or lender.

     Section 8.18. Waiver of Marshalling of Assets Defense. To the fullest extent that
each Borrower may legally do so, each Borrower waives all rights to a marshalling of the assets of
each such Borrower, and others with interests in such Borrower, and of any Individual Property, or
to a sale in inverse order of alienation in the event of foreclosure of the interests hereby
created, and agrees not to assert any right under any laws pertaining to the marshalling of assets,
the sale in inverse order of alienation, homestead exemption, the administration of estates of
decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under
the Loan Documents to a sale of any Individual Property for the collection of the Indebtedness
without any prior or different resort for collection, or the right of Lender or Deed of Trust
Trustee to the payment of the Indebtedness in preference to every other claimant whatsoever.

     Section 8.19. Waiver of Counterclaim. Each Borrower hereby waives the right to assert
a counterclaim, other than compulsory counterclaim, in any action or proceeding brought against
Borrower by Lender or Lender’s agents.

     Section 8.20. Conflict; Construction of Documents. In the event of any conflict
between the provisions of this Agreement and the provisions of the Note, any Mortgage or any of the
other Loan Documents, the provisions of this Agreement shall prevail. The parties hereto
acknowledge that they were represented by counsel in connection with the negotiation and drafting
of the Loan Documents and that the Loan Documents shall not be subject to the principle of
construing their meaning against the party which drafted same.

     Section 8.21. Brokers and Financial Advisors. Borrower and Lender hereby represent
that they have dealt with no financial advisors, brokers, underwriters, placement agents, agents or
finders in connection with the transactions contemplated by this Agreement. Each Borrower hereby
agrees to indemnify and hold Lender harmless from and against any and all claims, liabilities,
costs and expenses of any kind in any way relating to or arising from a claim by any Person, that
such Person acted on behalf of any Borrower in connection with the transactions contemplated
herein. The provisions of this Section shall survive the expiration and termination of this
Agreement and the repayment of the Indebtedness.

     Section 8.22. Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument.

     Section 8.23. Estoppel Certificates. Each Borrower and Lender each hereby agree at
any time and from time to time upon not less than fifteen (15) days prior written notice by any
Borrower or Lender (but no more than four (4) times per year unless (i) an Event of Default has

90

 

occurred and is continuing or (ii) such request is occasioned in connection with a Secondary Market
Transaction) to execute, acknowledge and deliver to the party specified in such notice, a
statement, in writing, certifying that this Agreement is unmodified and in full force and effect
(or if there have been modifications, that the same, as modified, is in full force and effect and
stating the modifications hereto), and stating whether or not, to the knowledge of such certifying
party, any Default or Event of Default has occurred, and, if so, specifying each such Default or
Event of Default; provided, however, that it shall be a condition precedent
to Lender’s obligation to deliver the statement pursuant to this Section, that Lender shall
have received, together with Borrower’s request for such statement, an Officer’s Certificate
stating that no Default or Event of Default exists as of the date of such certificate (or
specifying such Default or Event of Default).

     Section 8.24. Payment of Expenses. Borrowers shall, whether or not the Transactions
are consummated, pay all Transaction Costs, which shall include, without limitation, reasonable
out-of-pocket fees, costs, expenses, and disbursements of Lender and its attorneys, local counsel,
accountants and other contractors in connection with (i) the negotiation, preparation, execution
and delivery of the Loan Documents and the documents and instruments referred to therein, (ii) the
creation, perfection or protection of Lender’s Liens in the Collateral (including, without
limitation, fees and expenses for title and lien searches and filing and recording fees,
intangibles taxes, personal property taxes, mortgage recording taxes, due diligence expenses,
travel expenses, and accounting firm fees, costs of the Appraisals, Environmental Reports (and an
environmental consultant), Surveys and the Engineering Reports), (iii) the negotiation,
preparation, execution and delivery of any amendment, waiver or consent relating to any of the Loan
Documents, (iv) the review and approval of each replacement Interest Rate Cap Agreement required
hereunder, and (v) the preservation of rights under and enforcement of the Loan
Documents and the documents and instruments referred to therein, including any restructuring
or rescheduling of the Indebtedness, to the extent expressly required hereunder.

     Section 8.25. Bankruptcy Waiver. Each Borrower hereby agrees that, in consideration
of the recitals and mutual covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, if any Borrower (i)
files with any bankruptcy court of competent jurisdiction or be the subject of any petition under
Title 11 of the U.S. Code, as amended, (ii) is the subject of any order for relief issued under
Title 11 of the U.S. Code, as amended, (iii) files or is the subject of any petition seeking any
reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief
under any present or law relating to bankruptcy, insolvency or other relief of debtors, (iv) has
sought or consents to or acquiesces in the appointment of any trustee, receiver, conservator or
liquidator or (v) is the subject of any order, judgment or decree entered by any court of competent
jurisdiction approving a petition filed against such party for any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any present or future
federal or state act or law relating to bankruptcy, insolvency or other relief for debtors, the
automatic stay provided by the Federal Bankruptcy Code shall be modified and annulled as to Lender,
so as to permit Lender to exercise any and all of its rights and remedies, upon request of Lender
made on notice to any Borrower and any other party in interest but without the need of further
proof or hearing. Neither Borrower nor any Affiliate of any Borrower shall contest the
enforceability of this Section.

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     Section 8.26. Entire Agreement. This Agreement, together with the Exhibits hereto and
the other Loan Documents constitutes the entire agreement among the parties hereto with respect to
the subject matter contained in this Agreement, the Exhibits hereto and the other Loan Documents
and supersedes all prior agreements, understandings and negotiations between the parties.

     Section 8.27. Dissemination of Information. If Lender determines at any time to
participate in a Secondary Market Transaction, Lender may forward to each purchaser, transferee,
assignee, servicer, participant or investor in such securities (collectively, the
“Investor”), any Rating Agency rating such securities, any organization maintaining
databases on the underwriting and performance of commercial loans, trustee, counsel, accountant,
and each prospective Investor, all documents and information which Lender now has or may hereafter
acquire relating to the Loan, any Borrower, any direct or indirect equity owner of any Borrower,
any guarantor, any indemnitor and each Individual Property, which shall have been furnished by such
Borrower any Affiliate of any Borrower, any guarantor, any indemnitor, or any party to any Loan
Document, or otherwise furnished in connection with the Loan, as Lender in its reasonable
discretion determines necessary or desirable.

     Section 8.28. Limitation of Interest. It is the intention of each Borrower and Lender
to conform strictly to applicable usury laws. Accordingly, if the transactions contemplated hereby
would be usurious under applicable law, then, in that event, notwithstanding anything to the
contrary in any Loan Document, it is agreed as follows: (i) the aggregate of all consideration
which constitutes interest under applicable law that is taken, reserved, contracted for, charged or
received under any Loan Document or otherwise in connection with the Loan shall under no
circumstances exceed the maximum amount of interest allowed by applicable law, and any excess shall
be credited to principal by Lender (or if the Loan shall have been paid in full,
refunded to any Borrower); and (ii) in the event that maturity of the Loan is accelerated by
reason of an election by Lender resulting from any default hereunder or otherwise, or in the event
of any required or permitted prepayment, then such consideration that constitutes interest may
never include more than the maximum amount of interest allowed by applicable law, and any interest
in excess of the maximum amount of interest allowed by applicable law, if any, provided for in the
Loan Documents or otherwise shall be cancelled automatically as of the date of such acceleration or
prepayment and, if theretofore prepaid, shall be credited to principal (or if the principal portion
of the Loan and any other amounts not constituting interest shall have been paid in full, refunded
to any Borrower.)

          In determining whether or not the interest paid or payable under any specific contingency
exceeds the maximum amount allowed by applicable law, Lender shall, to the maximum extent permitted
under applicable law (a) exclude voluntary prepayments and the effects thereof, and (b) amortize,
prorate, allocate and spread, in equal parts, the total amount of interest throughout the entire
contemplated term of the Loan so that the interest rate is uniform throughout the entire term of
the Loan; provided, that if the Loan is paid and performed in full prior to the end of the full
contemplated term hereof, and if the interest received for the actual period of existence thereof
exceeds the maximum amount allowed by applicable law, Lender shall refund to any Borrower the
amount of such excess, and in such event, Lender shall not be subject to any penalties provided by
any laws for contracting for, charging or receiving interest in excess of the maximum amount
allowed by applicable law.

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     Section 8.29. Indemnification. Borrowers shall indemnify and hold Lender and each of
its affiliates and their respective successors and assigns (including their respective officers,
directors, partners, employees, attorneys, accountants, professionals and agents and each other
person, if any, controlling Lender or any of its affiliates within the meaning of either Section 15
of the Securities Act of 1933, as amended, or Section 20 of the Securities Exchange Act of 1934, as
amended) (each, including Lender, an “Indemnified Party”) harmless against any and all
losses, claims, damages, costs, expenses (including the fees and disbursements of outside counsel
retained by any such person) or liabilities in connection with, arising out of or as a result of
the transactions and matters referred to or contemplated by this Agreement, except to the extent
that it is finally judicially determined that any such loss, claim, damage, cost, expense or
liability resulted directly and solely from the gross negligence, fraud or willful misconduct of
such Indemnified Party. If any Indemnified Party becomes involved in any action, proceeding or
investigation in connection with any transaction or matter referred to or contemplated in this
Agreement, Borrowers shall periodically reimburse any Indemnified Party upon demand herefore in an
amount equal to its reasonable legal and other expenses (including the costs of any investigation
and preparation) incurred in connection therewith to the extent such legal or other expenses are
the subject of indemnification hereunder. IT IS EXPRESSLY ACKNOWLEDGED AND AGREED BY EACH BORROWER
THAT THE INDEMNITY (AND/OR THE RELEASE) CONTAINED IN THIS SECTION 8.29 PROTECTS LENDER FROM THE
CONSEQUENCES OF LENDER’S ACTS OR OMISSIONS, INCLUDING WITHOUT LIMITATION, THE NEGLIGENT ACTS OR
OMISSIONS OF LENDER TO THE EXTENT PERMITTED BY LAW; PROVIDED, HOWEVER, THAT NOTHING CONTAINED
HEREIN SHALL BE DEEMED TO RELIEVE THE LENDER FROM LIABILITY DUE TO ITS GROSS NEGLIGENCE, FRAUD OR
WILLFUL MISCONDUCT.

     Section 8.30. Borrower Acknowledgments. Each Borrower hereby acknowledges to and
agrees with Lender that (i) the scope of Lender’s business is wide and includes, but is not limited
to, financing, real estate financing, investment in real estate and other real estate transactions
which may be viewed as adverse to or competitive with the business of such Borrower or its
Affiliates and (ii) such Borrower has been represented by competent legal counsel and such Borrower
has consulted with such counsel prior to executing this Loan Agreement and of the other Loan
Documents.

     Section 8.31. Publicity. Lender shall have the right to issue press releases,
advertisements and other promotional materials describing Lender’s participation in the origination
of the Loan or the Loan’s inclusion in any Secondary Market Transaction effectuated or to be
effectuated by Lender. All news releases, publicity or advertising by any Borrower or their
affiliates through any media intended to reach the general public which refers to the Loan
Documents or the financing evidenced by the Loan Documents, to the Lender or any of its affiliates
shall be subject to the prior written approval of Lender, except for disclosures required by law
which shall not require Lender approval but which shall require prior written notice to Lender.

     Section 8.32. Cross Collateralization. Without limitation to any other right or
remedy provided to Lender in this Agreement or any of the other Loan Documents, each Borrower
covenants and agrees that (i) Lender shall have the right to pursue all of its rights and remedies
in one proceeding, or separately and independently in separate proceedings which it, as Lender, in

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its sole and absolute discretion, shall determine from time to time, (ii) Lender is not required to
either marshall assets, sell any or all of the Collateral in any inverse order or alienation, or be
subjected to any “one action” or “election of remedies” law or rule, (iii) the exercise by Lender
of any remedies against any of the Collateral will not impede Lender from subsequently or
simultaneously exercising remedies against any other Collateral, (iv) all Liens and other rights,
remedies and privileges provided to Lender in this Agreement and/or any other Loan Documents
otherwise shall remain in full force and effect until Lender has exhausted all of its remedies
against the Collateral and all the Collateral has been foreclosed, sold and/or otherwise realized
upon and (v) each Individual Property and all Collateral shall be security for the performance of
all of each relevant Borrower’s obligations hereunder and each relevant Borrower’s obligations
under all of the other Loan Documents. Each Borrower acknowledges and agrees that it shall be
jointly and severally liable for the obligations of all Borrowers under the Loan Documents.

     Section 8.33. Contribution. As a result of the transactions contemplated by this
Agreement, each Borrower will benefit, directly and indirectly, from each Borrower’s obligation to
pay the Indebtedness and perform its obligations hereunder and under the other Loan Documents and
in consideration therefore each Borrower desires to enter into an allocation and contribution
agreement among themselves as set forth in this Section 8.33 to allocate such benefits
among themselves and to provide a fair and equitable agreement to make contributions among each of
Borrowers in the event any payment is made by any individual Borrower hereunder to Lender (such
payment being referred to herein as a “Contribution”, and for purposes of this Section,
includes any exercise of recourse by Lender against any Collateral of a Borrower and application of
proceeds of such Collateral in satisfaction of such Borrower’s obligations, to Lender under the
Loan Documents).

          (a) Each Borrower shall be liable hereunder with respect to the Indebtedness only for such
total maximum amount (if any) that would not render its Indebtedness hereunder or under any of the
Loan Documents subject to avoidance under Section 548 of the Federal Bankruptcy Code or any
comparable provisions of any state law.

          (b) In order to provide for a fair and equitable contribution among Borrowers in the event
that any Contribution is made by an individual Borrower (a “Funding Borrower”), such
Funding Borrower shall be entitled to a reimbursement Contribution (“Reimbursement
Contribution”) from all other Borrowers for all payments, damages and expenses incurred by that
Funding Borrower in discharging any of the Indebtedness, in the manner and to the extent set forth
in this Section.

          (c) For purposes hereof, the “Benefit Amount” of any individual Borrower as of any
date of determination shall be the net value of the benefits to such Borrower from extensions of
credit made by Lender to (i) such Borrower and (ii) to the other Borrowers hereunder and the Loan
Documents.

          (d) Each Borrower shall be liable to a Funding Borrower in an amount equal to the greater of
(i) the (A) ratio of the Benefit Amount of such Borrower to the total amount of Indebtedness,
multiplied by (B) the amount of Indebtedness paid by such Funding Borrower, or (ii) ninety-five
percent (95%) of the excess of the fair saleable value of the property of such Borrower over the
total liabilities of such Borrower (including the maximum amount reasonably

94

 

expected to become due
in respect of contingent liabilities) determined as of the date on which the payment made by a
Funding Borrower is deemed made for purposes hereof (giving effect to all payments made by other
Funding Borrowers as of such date in a manner to maximize the amount of such Contributions).

          (e) In the event that at any time there exists more than one Funding Borrower with respect to
any Contribution (in any such case, the “Applicable Contribution”), then Reimbursement
Contributions from other Borrowers pursuant hereto shall be allocated among such Funding Borrowers
in proportion to the total amount of the Contribution made for or on account of the other Borrowers
by each such Funding Borrower pursuant to the Applicable Contribution. In the event that at any
time any Borrower pays an amount hereunder in excess of the amount calculated pursuant to this
Section 8.33 above, that Borrower shall be deemed to be a Funding Borrower to the extent of
such excess and shall be entitled to a Reimbursement Contribution from the other Borrowers in
accordance with the provisions of this Section.

          (f) Each Borrower acknowledges that the right to Reimbursement Contribution hereunder shall
constitute an asset in favor of such Borrower to which such Reimbursement Contribution is owing.

          (g) No Reimbursement Contribution payments payable by a Borrower pursuant to the terms of this
Section 8.33 shall be paid until all amounts then due and payable by all of Borrowers to
Lender, pursuant to the terms of the Loan Documents, are paid in full in cash. Nothing contained
in this Section 8.33 shall limit or affect in any way the Indebtedness of any Borrower to
Lender under the Note or any other Loan Documents.

          (h) Each Borrower waives:

               (i) any right to require Lender to proceed against any other Borrower or any other person or
to proceed against or exhaust any security held by Lender at any time or to pursue any other remedy
in Lender’s power before proceeding against Borrower;

               (ii) any defense based upon any legal disability or other defense of any other Borrower, any
guarantor of any other person or by reason of the cessation or limitation of the liability of any
other Borrower or any guarantor from any cause other than full payment of all sums payable under
the Note, this Agreement and any of the other Loan Documents;

               (iii) any defense based upon any lack of authority of the officers, directors, partners or
agents acting or purporting to act on behalf of any other Borrower or any principal of any other
Borrower or any defect in the formation of any other Borrower or any principal of any other
Borrower;

               (iv) any defense based upon any statute or rule of law which provides that the obligation of a
surety must be neither larger in amount nor in any other respects more burdensome than that of a
principal;

               (v) any defense based upon any failure by Lender to obtain collateral for the Indebtedness or
failure by Lender to perfect a lien on any Collateral;

95

 

               (vi) presentment, demand, protest and notice of any kind;

               (vii) any defense based upon any failure of Lender to give notice of sale or other disposition
of any collateral to any other Borrower or to any other person or entity or any defect in any
notice that may be given in connection with any sale or disposition of any Collateral;

               (viii) any defense based upon any failure of Lender to comply with applicable laws in
connection with the sale or other disposition of any Collateral, including any failure of Lender to
conduct a commercially reasonable sale or other disposition of any Collateral;

               (ix) any defense based upon any use of cash collateral under Section 363 of the Federal
Bankruptcy Code;

               (x) any defense based upon any agreement or stipulation entered into by Lender with respect to
the provision of adequate protection in any bankruptcy proceeding;

               (xi) any defense based upon any borrowing or any grant of a security interest under Section
364 of the Federal Bankruptcy Code;

               (xii) any defense based upon the avoidance of any security interest in favor of Lender for any
reason;

               (xiii) any defense based upon any bankruptcy, insolvency, reorganization, arrangement,
readjustment of debt, liquidation or dissolution proceeding,
including any discharge of, or bar or stay against collecting, all or any of the obligations
evidenced by the Note or owing under any of the Loan Documents;

               (xiv) any defense or benefit based upon such Borrower’s, or any other party’s, resignation of
the portion of any obligation secured by the Mortgages to be satisfied by any payment from any
other Borrower or any such party;

               (xv) all rights and defenses arising out of an election of remedies by Lender even though the
election of remedies, such as non-judicial foreclosure with respect to security for the Loan or any
other amounts owing under the Loan Documents, has destroyed Borrower’s rights of subrogation and
reimbursement against any other Borrower;

               (xvi) all rights and defenses that such Borrower may have because any of Indebtedness is
secured by real property. This means, among other things: (1) Lender may collect from such
Borrower without first foreclosing on any real or personal property collateral pledged by any other
Borrower, (2) if Lender forecloses on any real property collateral pledged by any other Borrower,
(I) the amount of the Indebtedness may be reduced only by the price for which that collateral is
sold at the foreclosure sale, even if the collateral is worth more than the sale price, (II) Lender
may collect from such Borrower even if any other Borrower, by foreclosing on the real property
collateral, has destroyed any right such Borrower may have to collect from any other Borrower.
This is an unconditional and irrevocable waiver of any rights

96

 

and defenses such Borrower may have
because any of the Indebtedness is secured by real property; and

               (xvii) except as may be expressly and specifically permitted herein, any claim or other right
which such Borrower might now have or hereafter acquire against any other Borrower or any other
person that arises from the existence or performance of any obligations under the Note, this
Agreement or the other Loan Documents, including any of the following: (i) any right of
subrogation, reimbursement, exoneration, contribution, or indemnification; or (ii) any right to
participate in any claim or remedy of Lender against any other
Borrower or any collateral security herefore, whether or not such claim, remedy or right arises in equity or under contract, statute
or common law.

     Section 8.34. Additional Financial Information.

          (a) If requested by Lender in connection with a public securitization in which the Loan
constitutes at least ten percent (10%) of the assets of the securitization, Borrowers, at
Borrowers’ expense, shall provide Lender with all financial statements and other financial,
statistical or operating information, to the extent required pursuant to Regulation S-X of the
Securities Act or any other Legal Requirements in connection with any (1) preliminary or final
private placement memorandum or other offering documents or (2) preliminary or final prospectus, as
applicable (each, a “Disclosure Document”) or any filing under or pursuant to the
Securities Act or the Exchange Act in connection with or relating to a securitization (each, a
“Securities Filing”). All financial statements provided by Borrowers pursuant to this
Section shall be prepared in accordance with GAAP and shall meet the requirements of Regulation S-X
and other applicable Legal Requirements. All financial statements reporting for a full operating
year (i) shall be audited by the independent accountants in accordance with generally accepted
auditing standards, Regulation S-X and all other applicable Legal Requirements, (ii) shall be
accompanied by the manually executed report of the independent accountants thereon, which
report shall meet the requirements of Regulation S-X and all other applicable Legal
Requirements, and (iii) shall be accompanied by a manually executed written consent of the
independent accountants, acceptable to Lender, that authorizes the inclusion of such financial
statements in any Disclosure Document or Securities Filing and permits the use of the name of such
independent accountants and reference to such independent accountants as “experts” in any
Disclosure Document and Securities Filing, all of which shall be provided, at Borrowers’ expense,
at the same time as the related financial statements are required to be provided. All other
financial statements shall be certified by the chief financial officer of Borrowers, which
certification shall state that such financial statements meet the requirements set forth in the
first sentence of this paragraph.

          (b) If requested by Lender, Borrowers shall provide Lender, promptly upon request, with any
other or additional financial statements or financial, statistical or operating information as
Lender determines to be required pursuant to Regulation S-X or other legal requirements in
connection with any Disclosure Document or any Securities Filing.

     Section 8.35. Change of Payment Date, Maturity Date, Interest Accrual Period and Interest
Rate Adjustment Date. At any time prior to securitization of the Loan by Lender, Lender shall
have the right to change the Payment Date (including, without limitation, the Maturity

97

 

Date), the
Interest Accrual Period and Interest Rate Adjustment Date to a date and period, as applicable,
other than as set forth in this Agreement (such new date, the “New Payment Date,” the
“New Interest Accrual Period,” and “New Interest Rate Adjustment Date” as
applicable) on thirty (30) days notice to Borrower; provided, however, that any
such change in the Payment Date, Interest Accrual Period or Interest Rate Adjustment Date: (i)
shall not modify the amount of regularly scheduled monthly principal and interest payments, except
that the first payment of principal and interest payable on the New Payment Date shall be
accompanied by interest at the Interest Rate for the period from the Payment Date in the month in
which the New Payment Date first occurs to the New Payment Date and (ii) shall extend the Maturity
Date to the New Payment Date occurring in the calendar month set forth in the definition of
Maturity Date.

     Section 8.36. Time of Essence. Each Borrower and Lender agrees that time is of the
essence with regard to all obligations under this Agreement and the other Loan Documents.

     Section 8.37. FINAL AGREEMENT. THE WRITTEN LOAN DOCUMENTS TO WHICH THIS NOTICE
RELATES REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN THE PARTIES.

[Signatures on the following pages]

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

	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 
	 	 	COUNTRYWIDE COMMERCIAL	 	 
	 	 	REAL ESTATE FINANCE, INC.,	 	 
	 	 	a California corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/S/ KYLE JEFFERS	 	 
	 

	 	 
	 	 

	 	 
	 

	 	 
	 	Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signatures continued on following page]

S2-1

 

 

	 	 	 	 	 	 	 	 	 
	 	 	BORROWERS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ASHFORD PHILLY LP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Ashford Philly GP LLC,	 	 
	 	 	 	 	a Delaware limited liability company,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 	 	 

David A. Brooks
	 	 
	 

	 	 	 	 	 	Vice President and Secretary	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ASHFORD ANCHORAGE LP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Ashford Anchorage GP LLC,	 	 
	 	 	 	 	a Delaware limited liability company,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 	 	 

David A. Brooks
	 	 
	 

	 	 	 	 	 	Vice President and Secretary	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ASHFORD MINNEAPOLIS AIRPORT LP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Ashford Minneapolis Airport GP LLC,	 	 
	 	 	 	 	a Delaware limited liability company,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 	 	 

David A. Brooks
	 	 
	 

	 	 	 	 	 	Vice President and Secretary	 	 

2

 

	 	 	 	 	 	 	 	 	 
	 	 	ASHFORD MV SAN DIEGO LP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Ashford MV San Diego GP LLC,	 	 
	 	 	 	 	a Delaware limited liability company,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 	 	 

David A. Brooks
	 	 
	 

	 	 	 	 	 	Vice President and Secretary	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ASHFORD WALNUT CREEK LP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Ashford Walnut Creek GP LLC,	 	 
	 	 	 	 	a Delaware limited liability company,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 	 	 

David A. Brooks
	 	 
	 

	 	 	 	 	 	Vice President and Secretary	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ASHFORD TRUMBULL LP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Ashford Trumbull GP LLC,	 	 
	 	 	 	 	a Delaware limited liability company,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 	 	 

David A. Brooks
	 	 
	 

	 	 	 	 	 	Vice President and Secretary	 	 

3

 

	 	 	 	 	 	 	 	 	 
	 	 	ASHFORD IOWA CITY LP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Ashford Iowa City GP LLC,	 	 
	 	 	 	 	a Delaware limited liability company,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 	 	 

David A. Brooks
	 	 
	 

	 	 	 	 	 	Vice President and Secretary	 	 

4

 

	 	 	 	 	 	 	 
	 	 	OPERATING LESSEE:	 	 
	 
	 	 	 	 	 	 
	 	 	Acknowledged and agreed to with respect to its
obligations set forth in Articles 4, 5 and 6 hereof
and Section 2.13:	 	 
	 
	 	 	 	 	 	 
	 	 	ASHFORD TRS NICKEL LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/S/ DAVID J. KIMICHIK	 	 
	 

	 	 	 	 

David J. Kimichik
	 	 
	 

	 	 	 	President and Secretary	 	 

5exv10w31w2

 

Exhibit 10.31.2

			
	 	 	 
	SMBC DERIVATIVE PRODUCTS LIMITED
	 	

 

Sumitomo Mitsui Banking Corporation Group

CONFIRMATION

	 	 	 
	Date:

	 	December 6, 2006
	 
	 	 
	To:

	 	ASHFORD PHILLY LP
	 

	 	ASHFORD ANCHORAGE LP
	 

	 	ASHFORD MINNEAPOLIS AIRPORT LP
	 

	 	ASHFORD MV SAN DIEGO LP
	 

	 	ASHFORD WALNUT CREEK LP
	 

	 	ASHFORD TRUMBULL LP
	 

	 	ASHFORD IOWA CITY LP
	 

	 	(individually and collectively known as “Party B“)
	 

	 	c/o Ashford Hospitality Trust
	 

	 	14185 Dallas Parkway, Suite 1100
	 

	 	Dallas, TX 75254
	 

	 	Telephone: 972-778-9207
	 

	 	Telefax:      972-490-9605
	 
	 	 
	Cc:

	 	Sergio Oliveira
	 

	 	Chatham Financial Corporation
	 

	 	1805 Shea Center Drive #160
	 

	 	Highlands Ranch, CO 80129
	 

	 	T: 720-221-3517
	 

	 	F: 720-221-3519
	 
	 	 
	From:

	 	SMBC Capital Markets, Inc. as Agent for SMBC Derivative Products Limited
	 

	 	Derivative Products Group
	 

	 	277 Park Avenue, Fifth Floor
	 

	 	New York, New York 10172
	 
	 	 
	cc:

	 	Documentation Contact: Evan Sandler
	 

	 	Telephone: 212-224-5144
	 

	 	Telefax:      212-224-4959
	 

	 	Email Address: confirms@smbc-cm.com
	 
	 	 
	Re:

	 	USD 212,000,000.00 Rate Protection Transaction, dated as of December 6, 2006 between SMBC
Derivative Products Limited (“Party A“) and Party B.

Our Reference Number: DPA609477

The purpose of this letter agreement is to set forth the terms and conditions of the Rate
Protection Transaction entered into between SMBC Derivative Products Limited and Party B on the
Trade Date specified below (the “Rate Protection Transaction“). This letter agreement constitutes
a “Confirmation“ as referred to in the ISDA Master Agreement specified below. This document
supersedes all previous confirmations and amendments with respect to the above referenced
transaction.

The definitions and provisions contained in the 1992 ISDA Master Agreement subject to the 2000 ISDA
Definitions as published by the International Swaps and Derivatives Association, Inc., are
incorporated into this Confirmation. In the event of any inconsistency between those definitions
and provisions and this Confirmation, this Confirmation will govern.

SMBC Derivative Products Limited and Party B have agreed not to amend, modify, assign, or
terminate the Rate Protection Transaction without the prior written consent of Countrywide
Commercial Real Estate Finance Inc. or the current lender, as the case may be.

	 	 	 	 	 
	277 Park Avenue New York, NY 10172
	 	PHONE: 212-224-5144 FAX: 212-224-4959
	 	Email: esandler@smbc-cm.com

 

 

			
	 	 	 
	Page 2
	 	DPA609477

SMBC Derivative Products Limited and Party B have agreed not to amend, modify, assign, or terminate the Rate Protection Transaction
without the prior written consent of COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC. or the current lender, as the case may be.

 

     1. ISDA AGREEMENT:

This Confirmation evidences a complete and binding agreement between you and us as to the terms of
the Transaction to which Confirmation relates. In addition, you and we agree to use all reasonable
efforts promptly to negotiate, execute and deliver an agreement in the form of the ISDA Master
Agreement (Multicurrency-Cross Border) ( the “ISDA Form“ ), with such modifications as you and we
will in good faith agree. Upon the execution by you and us of such an agreement, this Confirmation
will supplement, form part of, and be subject to that agreement. All provisions contained in or
incorporated by reference in that agreement upon its execution will govern this Confirmation except
as expressly modified below. Until we execute and deliver that agreement, this Confirmation,
together with all other documents referring to the ISDA Form (each a “Confirmation“) confirming
transactions (each a “Transaction“) entered into between us (notwithstanding anything to the
contrary in a Confirmation), shall supplement, form a part of, and be subject to, an agreement in
the form of the ISDA Form as if we had executed an agreement in such form on the Trade Date of the
first such Transaction between us. In the event of any inconsistency between the provisions of that
agreement and this Confirmation, this Confirmation will prevail for the purpose of this
Transaction.

     2. NOTICE TO COUNTERPARTY:

SMBC Derivative Products Limited is solely responsible for its contractual obligations and
commitments; none of Sumitomo Mitsui Banking Corporation, SMBC Capital Markets, Inc., SMBC Limited
nor any other affiliate of SMBC Derivative Products Limited shall be responsible for the
contractual obligations or commitments of SMBC Derivative Products Limited.

SMBC Derivative Products Limited is not a bank and is separate from any affiliated bank, and the
obligations of SMBC Derivative Products Limited are not deposits, are not insured by the United
States of America or any agency thereof, are not guaranteed by an affiliated bank, and are not
otherwise an obligation of an affiliated bank.

SMBC Derivative Products Limited is regulated by Financial Services Authority. The time of
execution of the transaction is available on request.

     3. TERMS OF RATE PROTECTION TRANSACTION:

The terms of the particular Rate Protection Transaction to which this Confirmation relates are as
follows:

	 	 	 
	Type of Rate Protection Transaction:

	 	Rate Cap Transaction
	 
	 	 
	Notional Amount:

	 	USD 212,000,000.00
	 
	 	 
	Trade Date:

	 	December 6, 2006
	 
	 	 
	Effective Date:

	 	December 6, 2006
	 
	 	 
	Termination Date:

	 	December 11, 2009 subject to adjustment in accordance with the Preceding
Business Day Convention

SMBC Derivative Products Limited and Party B have agreed not to amend, modify, assign, or terminate the Rate Protection Transaction
without the prior written consent of COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC. or the current lender, as the case may be.

 

 

			
	 	 	 
	Page 3
	 	DPA609477

SMBC Derivative Products Limited and Party B have agreed not to amend, modify, assign, or terminate the Rate Protection Transaction
without the prior written consent of COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC. or the current lender, as the case may be.

 

			
	FLOATING AMOUNTS:

	 	( PARTY A )
	 
	 	 
	Floating Rate Payer:

	 	SMBC Derivative Products Limited
	 
	 	 
	Initial Floating Rate Calculation Period:

	 	The initial Floating Rate Calculation Period will be from and including the
Effective Date up to but excluding December 11, 2006, subject to
adjustment in accordance with the Preceding Business Day
	 
	 	 
	Floating Rate Calculation Periods:

	 	The Floating Rate Calculation Periods will be the initial Floating Rate
Calculation Period and thereafter, from and including the eleventh
(11th) day of each month to but excluding the eleventh
(11th) day of the following month and continuing up to but excluding
the Termination Date, subject to adjustment in accordance with the Preceding
Business Day
	 
	 	 
	Floating Rate Payer Payment Dates:

	 	Three (3) Business Days prior to the eleventh (11th) calendar day of
each month beginning with December 6, 2006, continuing up to and including
December 8, 2009, subject to adjustment in accordance with the Preceding
Business Day Convention, however, the eleventh (11th) day of each
month will first be adjusted in accordance with the Preceding Business Day
Convention
	 
	 	 
	Floating Rate for initial Calculation Period:

	 	5.35000 % (percent) per annum
	 
	 	 
	Floating Rate Option:

	 	USD-LIBOR-BBA
	 
	 	 
	Designated Maturity:

	 	1 Month
	 
	 	 
	Spread:

	 	Inapplicable
	 
	 	 
	Floating Rate Day Count Fraction:

	 	Actual/360
	 
	 	 
	Reset Dates:

	 	The fifteenth (15th) calendar day of each month
	 
	 	 
	Compounding:

	 	Inapplicable
	 
	 	 
	Cap Rate:

	 	6.25000 % (percent) per annum
	 
	 	 
	FIXED AMOUNTS:

	 	( PARTY B )
	 
	 	 
	Fixed Rate Payer:

	 	Party B
	 
	 	 
	Fixed Rate Payer Payment Date:

	 	December 8, 2006

SMBC Derivative Products Limited and Party B have agreed not to amend, modify, assign, or terminate the Rate Protection Transaction
without the prior written consent of COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC. or the current lender, as the case may be.

 

 

			
	 	 	 
	Page 4
	 	DPA609477

SMBC Derivative Products Limited and Party B have agreed not to amend, modify, assign, or terminate the Rate Protection Transaction
without the prior written consent of COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC. or the current lender, as the case may be.

 

			
	Fixed Amount:

	 	USD 231,000.00
	 
	 	 
	Business Days for Payments by both parties:

	 	California
	 
	 	 
	Calculation Agent:

	 	SMBC Derivative Products Limited
	 
	 	 
	Governing Law:

	 	New York
	 
	 	 
	Collateral Assignment:

	 	SMBC Derivative Products Limited consents to a collateral assignment of this
Confirmation and the Agreement and agrees to execute separate consents as may
be reasonably requested by the parties to such agreements
	 
	 	 
	Assignment:

	 	SMBC Derivative Products Limited will not unreasonably withhold or delay its
consent to an assignment of this agreement to any other third party.

4.
CREDIT SUPPORT DOCUMENTS:                             Inapplicable

5. PAYMENT INSTRUCTIONS:

Payments to SMBC Derivative Products Limited of USD amounts:

	 	 	 
	Depository:

	 	JPMorgan Chase Bank, N.A. New York Branch
	ABA Routing No.:

	 	021000021
	In Favor Of:

	 	SMBC Derivative Products Limited
	Account No.:

	 	400035413

Please contact Larry Weissblum of our Operations Group if you have any questions concerning SMBC
Derivative Products Limited’s payment instructions referenced above (Telephone: 212-224-5061;
Telefax: 212-224-5122).

Payments to Party B of USD amounts:

	 	 	 
	Depository:

	 	JPMorgan Chase Bank, Dallas
	ABA No:

	 	111000614
	In Favor Of:

	 	Party B
	Account No:

	 	711413062

Each party will be deemed to represent to the other party on the date on which it enters into this
Transaction that (absent a written agreement between the parties that expressly imposes affirmative
obligations to the contrary for this Transaction):

     (i) Non-Reliance. It is acting for its own account, and it has made its own independent
decisions to enter into this Transaction and as to whether this Transaction is appropriate or
proper for it based upon its own judgment and upon advice from such advisers as it has deemed
necessary. It is not relying on any communication (written or oral) of the other party as
investment advice or as a recommendation to enter into this Transaction: it being understood that
information and explanations relating to the terms and conditions of this Transaction shall not be
considered investment advice or a recommendation to enter into this Transaction. No communication
(written or oral) received from the other party shall be deemed to be an assurance or guarantee as
to the expected results of this Transaction.

SMBC Derivative Products Limited and Party B have agreed not to amend, modify, assign, or terminate the Rate Protection Transaction
without the prior written consent of COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC. or the current lender, as the case may be.

 

 

			
	 	 	 
	Page 5
	 	DPA609477

SMBC Derivative Products Limited and Party B have agreed not to amend, modify, assign, or terminate the Rate Protection Transaction
without the prior written consent of COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC. or the current lender, as the case may be.

 

     (ii) Assessment and Understanding. It is capable of assessing the merits of and understanding
(on its own behalf or through independent professional advice), and understands and accepts, the
terms, conditions and risks of this Transaction. It is also capable of assuming, and assumes, the
risks of this Transaction.

     (iii) Status of Parties. The other party is not acting as a fiduciary for or an
advisor to it in respect of this Transaction.

Please confirm that the foregoing correctly sets forth the terms of the agreement between you and
us by executing this Confirmation and returning it to the documentation contact above.

Yours Sincerely,

SMBC Capital Markets, Inc. as Agent for SMBC Derivative Products Limited

	 	 	 	 	 
	By:

	 	/S/ LARRY WEISSBLUM	 	 
	 

	 	 	 	 
	Name:

	 	Larry Weissblum	 	 
	Title:

	 	Senior Vice President	 	 
	 
	 	 	 	 
	By:

	 	/S/ DANNY BOODRAM	 	 
	 

	 	 	 	 
	Name:

	 	Danny Boodram	 	 
	Title:

	 	Assistant Vice President	 	 
	 
	 	 	 	 
	Confirmed as of the date first written above:
	 
	 	 	 	 
	ASHFORD PHILLY LP	 	 
	 
	 	 	 	 
	By:

	 	Ashford Philly GP LLC, a Delaware
limited liability
company, its general partner	 	 
	 
	 	 	 	 
	By:

	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 
	Name:

	 	David A. Brooks	 	 
	Title:

	 	Vice President and Secretary	 	 
	 
	 	 	 	 
	ASHFORD ANCHORAGE LP	 	 
	 
	 	 	 	 
	By:

	 	Ashford Anchorage GP LLC, a
Delaware limited liability
company, its general partner	 	 
	 
	 	 	 	 
	By:

	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 
	Name:

	 	David A. Brooks	 	 
	Title:

	 	Vice President and Secretary	 	 

{signature continues on the following page}

SMBC Derivative Products Limited and Party B have agreed not to amend, modify, assign, or terminate the Rate Protection Transaction
without the prior written consent of COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC. or the current lender, as the case may be.

 

 

			
	 	 	 
	Page 6
	 	DPA609477

SMBC Derivative Products Limited and Party B have agreed not to amend, modify, assign, or terminate the Rate Protection Transaction
without the prior written consent of COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC. or the current lender, as the case may be.

 

					
	ASHFORD MINNEAPOLIS AIRPORT LP	 	 
	 
	 	 	 	 
	By:

	 	Ashford Minneapolis Airport GP LLC,
a Delaware limited liability company, its general partner	 	 
	 
	 	 	 	 
	By:

	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 
	Name:

	 	David A. Brooks	 	 
	Title:

	 	Vice President and Secretary	 	 
	 
	 	 	 	 
	ASHFORD MV SAN DIEGO LP	 	 
	 
	 	 	 	 
	By:

	 	Ashford MV San Diego GP LLC, a
Delaware limited liability company, its general partner	 	 
	 
	 	 	 	 
	By:

	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 
	Name:

	 	David A. Brooks	 	 
	Title:

	 	Vice President and Secretary	 	 
	 
	 	 	 	 
	ASHFORD WALNUT CREEK LP	 	 
	 
	 	 	 	 
	By:

	 	Ashford Walnut Creek GP LLC, a
Delaware limited liability company, its general partner	 	 
	 
	 	 	 	 
	By:

	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 
	Name:

	 	David A. Brooks	 	 
	Title:

	 	Vice President and Secretary	 	 
	 
	 	 	 	 
	ASHFORD TRUMBULL LP	 	 
	 
	 	 	 	 
	By:

	 	Ashford Trumbull GP LLC, a Delaware
limited liability company, its general partner	 	 
	 
	 	 	 	 
	By:

	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 
	Name:

	 	David A. Brooks	 	 
	Title:

	 	Vice President and Secretary	 	 

{signature continues on the following page}

SMBC Derivative Products Limited and Party B have agreed not to amend, modify, assign, or terminate the Rate Protection Transaction
without the prior written consent of COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC. or the current lender, as the case may be.

 

 

			
	 	 	 
	Page 7
	 	DPA609477

SMBC Derivative Products Limited and Party B have agreed not to amend, modify, assign, or terminate the Rate Protection Transaction
without the prior written consent of COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC. or the current lender, as the case may be.

 

					
	ASHFORD IOWA CITY LP	 	 
	 
	 	 	 	 
	By:

	 	Ashford Iowa City GP LLC, a
Delaware limited liability company, its general partner	 	 
	 
	 	 	 	 
	By:

	 	/S/ DAVID A. BROOKS	 	 
	 

	 	 	 	 
	Name:

	 	David A. Brooks	 	 
	Title:

	 	Vice President and Secretary	 	 

SMBC Derivative Products Limited and Party B have agreed not to amend, modify, assign, or terminate the Rate Protection Transaction
without the prior written consent of COUNTRYWIDE COMMERCIAL REAL ESTATE FINANCE, INC. or the current lender, as the case may be.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]