Document:

Mortgage Loan Agreement, dated June 22,2004

 EXHIBIT 10.2 
  
 [Tampa, Florida] 
  
 LOAN AGREEMENT 
  
 Dated as of June 21, 2004 
  
 between 
  
 PAH-TAMPA,
L.P., 
  
 as Borrower 
  
 and 
  
 COLUMN FINANCIAL, INC., 
  
 as Lender 
  
 ADJUSTABLE RATE PROPERTY LOAN 
  

 LOAN AGREEMENT 
  
 THIS LOAN AGREEMENT, dated as of June 21, 2004 (as amended, restated, replaced, supplemented or otherwise modified from time
to time, this “Agreement”), between COLUMN FINANCIAL, INC., having an address at 11 Madison Avenue, New York, New York 10010 (“Lender”) and PAH-TAMPA, L.P., having its principal place of business c/o Wyndham
International, Inc., 1950 Stemmons Freeway, Suite 6001, Dallas, Texas 75207 (“Borrower”). 
  
 W I T N E S S E T H : 
  
 WHEREAS, Borrower desires to obtain the Loan (as hereinafter defined) from Lender; and 
  
 WHEREAS, Lender is willing to make the Loan to Borrower, subject to and in accordance with the terms and conditions of this Agreement and the other Loan
Documents (as hereinafter defined). 
  
 NOW THEREFORE, in
consideration of the making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto hereby covenant, agree, represent and warrant as follows: 
  
 ARTICLE 1 
  
 DEFINITIONS; PRINCIPLES OF CONSTRUCTION 
  
 Section 1.1 Definitions. For all purposes of this Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent: 
  
 “Acceptable Counterparty” shall mean any counterparty to the Interest Rate Cap Agreement that (a) has and
shall maintain, until the expiration of the applicable Interest Rate Cap Agreement, a long-term unsecured debt rating of at least “A+” by S&P and “A1” from Moody’s, which rating shall not include a “t” or
otherwise reflect a termination risk or (b) is otherwise acceptable to the Rating Agencies. Lender hereby acknowledges and agrees that, as of the date hereof, JP Morgan Chase is an Acceptable Counterparty. 
  
 “Acquired Property” shall have the meaning set forth in
Section 5.1.11(d)(i) hereof. 
  
 “Acquired Property
Statements” shall have the meaning set forth in Section 5.1.11(d)(i) hereof. 
  
 “Additional Due Diligence Materials” shall mean, in respect of a Substitute Property, appraisals, engineering reports, environmental reports, survey, title insurance policies, insurance
policies, financial statements (relating to the Substitute Property, Borrower, the Significant Parties and such other Persons as Lender shall reasonably require), financial and market projections, marketing reports, opinions of counsel, resolutions,
consents and other due diligence materials customarily required by Lender or any Rating Agency (in their respective sole 

  

 
discretion) in respect of loan transactions similar to the transactions contemplated hereby and relating to properties similar to the Substitute Property.

  
 “Additional Insolvency Opinion”
shall have the meaning set forth in Section 4.1.30(c) hereof. 
  
 “Adjusted Release Amount” shall mean, the amount which is equal to 120% of the Outstanding Principal Balance as of the date of such release. 
  
 “Affiliate” shall mean, as to any Person, any other Person that, directly or indirectly, is
in control of, is controlled by or is under common control with such Person or is a director or officer of such Person or of an Affiliate of such Person. 
  
 “Affiliated Loans” shall mean a loan (including, without limitation, the Other Loans) made by Lender to an Affiliate of Borrower or
Guarantor. 
  
 “Affiliated Manager” shall mean
any Manager in which Borrower, Principal or Guarantor has, directly or indirectly, any legal, beneficial or economic interest. 
  
 “Aggregate Debt Service” shall mean with respect to any particular period of time, scheduled principal and/or interest payments due on
the Other Loans and the Loan then outstanding. 
  
 “Aggregate Debt Service Coverage Ratio” shall mean, with respect to the Other Properties then remaining subject to the Liens of the Other Mortgages and the Property, in respect of the relevant period, the ratio of: (i) the
Aggregate Net Operating Income (excluding interest on credit accounts) of such Other Properties and the Property for the relevant period to (ii) the applicable Aggregate Debt Service as determined in accordance with the definition of Aggregate Debt
Service set forth herein. 
  
 “Aggregate Gross
Income” shall mean, for any period, the sum of “Gross Income from Operations” (as defined in, and as computed in accordance with, the applicable Other Borrower Loan Documents) of each of the Other Properties then remaining subject
to the Liens of the Other Mortgages and Gross Income from Operations of the Property. 
  
 “Aggregate Net Cash Flow” shall mean, for any period, the sum of (a) Net Cash Flow and (b) Net Cash Flow (as defined in, and computed in accordance with, the applicable Other Borrower Loan Documents)
of each of the Other Properties then remaining subject to the Liens of the Other Mortgages. 
  
 “Aggregate Net Operating Income” shall mean, for any period, the excess of (x) the Aggregate Gross Income over (y) the Aggregate Operating Expenses. 
  
 “Aggregate Operating Expenses” shall mean, in respect of the
relevant period, the sum of Operating Expenses of the Property and “Operating Expenses” (as defined in, and as computed in accordance with, the applicable Other Borrower Loan Documents) of each of the Other Properties then remaining
subject to the Liens of the Other Mortgages. 
  

 2 

 “ALTA” shall mean American Land Title Association, or any successor thereto. 

 
 “Annual Budget” shall mean the operating budget,
including all planned Capital Expenditures, for the Property prepared by Borrower for the applicable calendar year or other period. 
  
 “Annual FF&E Budget” shall mean that portion of the Annual Budget providing for FF&E expenditures. 
  
 “Applicable Interest Rate” shall mean the rate or rates at
which the Outstanding Principal Balance bears interest from time to time in accordance with the provisions of Section 2.2.3 hereof. 
  
 “Approved Annual Budget” shall have the meaning set forth in Section 5.1.11(j) hereof. 
  
 “Approved Annual FF&E Budget” shall have the meaning set
forth in Section 5.1.11(j) hereof. 
  
 “Assignment of
Leases” shall mean that certain first priority Assignment of Leases and Rents, dated as of the date hereof, from Borrower, as assignor, to Lender, as assignee, assigning to Lender all of Borrower’s interest in and to the Leases and
Rents of the Property as security for the Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Assignment of Management Agreement” shall mean that certain Assignment of Management Agreement and Subordination of Management Fees,
dated as of the date hereof, among Lender, Borrower and Manager, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Award” shall mean any compensation paid by any Governmental Authority in connection with a Condemnation.

  
 “Bankruptcy Action” shall mean with respect
to any Person: (a) such Person filing a voluntary petition under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (b) the filing of an involuntary petition against such Person under the Bankruptcy Code or any other
Federal or state bankruptcy or insolvency law, or soliciting such Person or causing to be solicited petitioning creditors for any involuntary petition against such Person; (c) such Person filing an answer consenting to or otherwise acquiescing in or
joining in any involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited petitioning creditors for any involuntary
petition from any Person; (d) such Person consenting to or acquiescing in or joining in an application for the appointment of a custodian, receiver, trustee, or examiner for such Person or any portion of the Property; or (e) such Person making an
assignment for the benefit of creditors, or admitting, in writing or in any legal proceeding, its insolvency or inability to pay its debts as they become due. 
  

“Basic Carrying Costs” shall mean, for any period, the sum of the following costs: (a) Taxes, (b) Other Charges, and (c) Insurance
Premiums. 
  

 3 

 “Borrower” shall have the meaning set forth in the introductory paragraph hereto,
together with its successors and permitted assigns. 
  
 “Borrower Guaranty” shall mean that certain Borrower Guaranty Agreement, dated as of the date hereof, from Borrower in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time. 
  
 “Breakage Costs” shall have the
meaning set forth in Section 2.2.3(h) hereof. 
  
 “Business Day” shall mean any day other than a Saturday, Sunday or any other day on which national banks in New York, New York are not open for business. 
  
 “Capital Expenditures” shall mean, for any period, the amount expended for items capitalized under GAAP
(including expenditures for building improvements or major repairs, leasing commissions and tenant improvements). 
  
 “Cash Management Account” shall have the meaning set forth in Section 2.6.3(a) hereof. 
  
 “Cash Management Agreement” shall mean that certain Cash
Management Agreement, dated as of the date hereof, by and among Borrower and Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Casualty” shall have the meaning set forth in Section 6.2 hereof. 
  
 “Casualty Consultant” shall have the meaning set forth in
Section 6.4(b)(iii) hereof. 
  
 “Casualty
Retainage” shall have the meaning set forth in Section 6.4(b)(iv) hereof. 
  
 “Closing Date” shall mean the date of the funding of the Loan. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended, as it may be further amended from time to time, and any successor
statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 
  
 “Collateral Assignment of Interest Rate Cap Agreement” shall mean a Collateral Assignment of Interest Rate Cap Agreement, in
substantially the same form and content attached hereto as Exhibit A, executed by Borrower in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

  
 “Condemnation” shall mean a temporary or
permanent taking by any Governmental Authority as the result or in lieu or in anticipation of the exercise of the right of condemnation or eminent domain, of all or any part of the Property, or any interest therein or right accruing thereto,
including any right of access thereto or any change of grade affecting the Property or any part thereof. 
  
 “Condemnation Proceeds” shall have the meaning set forth in Section 6.4(b) hereof. 
  

 4 

 “Counterparty” shall mean, with respect to the Interest Rate Cap Agreement and any
Replacement Interest Rate Cap Agreement, any Acceptable Counterparty. 
  
 “Covered Disclosure Information” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “CSFB” shall mean Credit Suisse First Boston Corporation and its successors in interest. 
  
 “Debt” shall mean the Outstanding Principal Balance,
together with all interest accrued and unpaid thereon and all other sums (including any Prepayment Premium) due to Lender in respect of the Loan under the Note, this Agreement, the Mortgage and the other Loan Documents. 
  
 “Debt Service” shall mean, with respect to any particular
period of time, scheduled principal and/or interest payments due under this Agreement and the Note. 
  
 “Debt Service Coverage Ratio” shall mean a ratio for the applicable period in which: 
  
 (a) the numerator is the Net Operating Income (excluding
interest on credit accounts) for the twelve (12) month period immediately preceding the date of determination for which financial statements are available; and 
  

(b) the denominator is the amount of interest paid on the Note for the trailing twelve (12) month period immediately preceding the date
of determination for which financial statements are available calculated at the interest rate computed in accordance with the provisions of this Agreement at a deemed annual rate of 11.33%. 
  
 “Debt Service Reserve” shall mean have the meaning set forth
in Section 7.5. 
  
 “Debt Service Reserve
Account” shall mean have the meaning set forth in Section 7.5. 
  
 “Debt Service Reserve Funds” shall mean have the meaning set forth in Section 7.5. 
  
 “Decorative Changes” shall mean any alterations or change to the Improvements that are made primarily for decorative or cosmetic purposes
(e.g. painting, wallpapering, carpeting, FF&E etc.) that: (a) will not have a Material Adverse Effect, and (b) do not affect or involve (other than in a decorative or cosmetic manner) any structural component of any Improvements, any utility or
HVAC system contained in any Improvements or the exterior of any building constituting a part of any Improvements. 
  
 “Default” shall mean the occurrence of any event hereunder or under any other Loan Document which, but for the giving of notice or
passage of time, or both, would be an Event of Default. 
  
 “Default Rate” shall mean a rate per annum equal to the lesser of (a) the Maximum Legal Rate, and (b) four percent (4%) above the Applicable Interest Rate. 
  

 5 

 “Determination Date” shall mean, with respect to any Interest Period, the date that is
two (2) London Business Days prior to the fifteenth (15th) day of the calendar month in which such Interest Period commences. 
  
 “Disclosure Document” shall mean a prospectus, prospectus supplement, private placement memorandum, offering memorandum, offering
circular, term sheet, road show presentation materials or other offering documents or marketing materials, in each case in preliminary or final form, used to offer Securities in connection with a Securitization. 
  
 “Eligibility Requirements” means, with respect to any
Person, that such Person (i) has total assets (in name or under management) in excess of $50,000,000 and (ii) is regularly engaged in the business of making investments in or operating hotels. 
  
 “Eligible Account” shall mean a separate and identifiable
account from all other funds held by the holding institution that is either (a) an account or accounts maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution or
(b) a segregated trust account or accounts maintained with a federal or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository institution or trust company, is
subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal and state authority. An Eligible Account will
not be evidenced by a certificate of deposit, passbook or other instrument. 
  
 “Eligible Institution” shall mean a depository institution or trust company, the short term unsecured debt obligations or commercial paper of which are rated at least “A-1+” by S&P,
“P-1” by Moody’s and “F-1+” by Fitch in the case of accounts in which funds are held for thirty (30) days or less (or, in the case of accounts in which funds are held for more than thirty (30) days, the long term unsecured
debt obligations of which are rated at least “AA” by Fitch and S&P and “Aa2” by Moody’s). Lender hereby acknowledges and agrees that, as of the date hereof, each of Wachovia, JP Morgan Chase and Wells Fargo is deemed to
be an Eligible Institution. 
  
 “Embargoed
Person” shall have the meaning set forth in Section 4.1.35 hereof. 
  
 “Engineering Report” shall mean (i) that certain report dated March 23, 2004, prepared by SCS Engineers with respect to the Property and (ii) that certain report dated March 18, 2004, prepared by
Professional Service Industries, Inc., with respect to the Property. 
  
 “Environmental Indemnity” shall mean that certain Environmental Indemnity Agreement, dated as of the date hereof, executed by Borrower and Guarantor in connection with the Loan for the benefit of
Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Equipment” shall have the meaning set forth in the granting clause of the Mortgage. 
  
 “Equity Pledge Agreement” shall mean that certain Equity
Pledge and Security Agreement, dated as of the date hereof, executed by Patriot American Hospitality Partnership, 

  

 6 

 
L.P., a Virginia limited partnership, and PAH-T, LLC, a Delaware limited liability company, in connection with, and securing, the Loan and the Other Loans
for the benefit of Lender, as the same may have been, or may hereafter be, amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
  
 “Event of Default” shall have the meaning set forth in
Section 8.1(a) hereof. 
  
 “Excess Cash
Flow” shall have the meaning set forth in Section 2.6.3(b) hereof. 
  
 “Exchange Act” shall have the meaning set forth in Section 9.2(a) hereof. 
  
 “Exchange Act Filing” shall have the meaning set forth in Section 5.1.11(g) hereof. 
  
 “Extension Notice” shall have the meaning set forth in
Section 2.7.1 hereof. 
  
 “Extraordinary
Expense” shall have the meaning set forth in Section 5.1.11(k) hereof. 
  
 “FF&E” shall mean furniture, fixtures and equipment and other replacements and repairs required to be made to the Property during the applicable calendar year. 
  
 “FF&E Reserve Account” shall have the meaning set forth
in Section 7.3.1 hereof. 
  
 “FF&E Reserve
Deposit” shall have the meaning set forth in Section 7.3.1 hereof. 
  
 “FF&E Reserve Funds” shall have the meaning set forth in Section 7.3.1 hereof. 
  
 “Financing Leases” shall have the meaning set forth in Section 5.2.10(f). 
  
 “First Extension Commencement Date” shall have the meaning
set forth in Section 2.7.1 hereof. 
  
 “First
Extension Term” shall have the meaning set forth in Section 2.7.1 hereof. 
  
 “Fiscal Year” shall mean each twelve (12) month period commencing on January 1 and ending on December 31 during each year of the term of
the Loan. 
  
 “Fitch” shall mean Fitch IBCA, Inc.

  
 “Foreign Taxes” shall have the meaning set
forth in Section 2.2.3(e) hereof. 
  
 “Franchise
Agreement” shall have the meaning set forth in Section 5.2.12(a) hereof. 
  
 “Franchisor” shall have the meaning set forth in Section 5.2.12 hereof. 
  
 “GAAP” shall mean generally accepted accounting principles
in the United States of America as of the date of the applicable financial report. 
  

 7 

 “Governmental Authority” shall mean any court, board, agency, commission, office or
other authority of any nature whatsoever for any governmental unit (federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence having jurisdiction over Borrower, Lender and/or the Property. 
  
 “Gross Income from Operations” shall mean, for any period,
all Rents; provided, however, that Gross Income from Operations shall not include: (a) non-recurring income and non-Property related income (as determined by Lender in its reasonable discretion), (b) security deposits received from any
tenant unless and until the same are applied to rent or any other of such tenant’s obligations in accordance with the terms of such tenant’s Lease, (c) any loan proceeds or proceeds of capital or equity contributions received by Borrower,
(d) gratuities or service charges or other similar receipts which are to be paid over to Property employees or persons occupying similar positions for performing similar duties, (e) Insurance Proceeds (other than Insurance Proceeds from business or
rental interruption coverage) and Condemnation Proceeds, (f) excise taxes, sales taxes, use taxes, bed taxes, admission taxes, tourist taxes, gross receipts taxes, value added taxes, entertainment taxes, or other taxes or similar charges payable to
any Governmental Authority, (g) proceeds from the sale of FF&E no longer required for the operation of the Property, and (h) Rents from month-to-month tenants or tenants that are included in any Bankruptcy Action. Any credit or refunds to guests
and patrons with respect to amounts previously included in Gross Income from Operations shall be deducted from Gross Income from Operations in the period when such credit or refund is issued. 
  
 “Guarantor” shall mean Wyndham International, Inc., a
Delaware corporation. 
  
 “Guaranty” shall mean
that certain Guaranty Agreement (Recourse), dated as of the date hereof, from Guarantor in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Improvements” shall have the meaning set forth in the
granting clause of the Mortgage. 
  
 “Indebtedness” shall mean, for any Person, on a particular date, the sum (without duplication) at such date of: (a) all indebtedness or liability of such Person (including, without limitation, amounts for borrowed money and
indebtedness in the form of mezzanine debt and preferred equity); (b) obligations evidenced by bonds, debentures, notes, or other similar instruments; (c) obligations for the deferred purchase price of property or services (including trade
obligations); (d) obligations under letters of credit; (e) obligations under acceptance facilities; (f) all guaranties, endorsements (other than for collection or deposit in the ordinary course of business) and other contingent obligations to
purchase, to provide funds for payment, to supply funds, to invest in any Person or entity, or otherwise to assure a creditor against loss; and (g) obligations secured by any Liens, whether or not the obligations have been assumed. 
  
 “Indemnified Liabilities” shall have the meaning set forth
on Section 10.13(b) hereof. 
  
 “Indemnified
Person” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “Indemnifying Person” shall mean each of Borrower, Principal and Guarantor. 
  

 8 

 “Independent Director” or “Independent Manager” shall mean a Person who
is not at the time of initial appointment, or at any time while serving as a director or manager, as applicable, and has not been at any time during the preceding five (5) years: (a) a stockholder, director (with the exception of serving as an
Independent Director or Independent Manager), officer, employee, partner, member, attorney or counsel of Principal, Borrower or any Affiliate of either of them; (b) a customer, supplier or other Person who derives any of its purchases or revenues
from its activities with Principal, Borrower or any Affiliate of either of them (with the exception of serving as an Independent Director or Independent Manager); (c) a Person controlling or under common control with any such stockholder, director,
officer, partner, member, customer, supplier or other Person; or (d) a member of the immediate family of any such stockholder, director, officer, employee, partner, member, customer, supplier or other Person. As used in this definition, the term
“control” means the possession, directly or indirectly, of the power to direct or cause the direction of management, policies or activities of a Person, whether through ownership of voting securities, by contract or otherwise.

  
 “Initial Maturity Date” shall mean July 9,
2006. 
  
 “Insolvency Opinion” shall mean that
certain non-consolidation opinion letter dated the date hereof delivered by Sidley Austin Brown & Wood LLP in connection with the Loan. 
  
 “Insurance Premiums” shall have the meaning set forth in Section 6.1(b) hereof. 
  
 “Insurance Proceeds” shall have the meaning set forth in
Section 6.4(b) hereof. 
  
 “Interest
Period” shall mean, with respect to any Payment Date, the period commencing on the ninth (9th) day of the preceding calendar month and terminating on the eighth (8th) day of the calendar month in which such Payment Date occurs; provided,
however, that no Interest Period shall end later than the Maturity Date (other than for purposes of calculating interest at the Default Rate), and the initial Interest Period shall begin on the Closing Date and shall end on the immediately
following eighth (8th) day of the calendar month. 
  
 “Interest Rate Cap Agreement” shall mean, as applicable, an Interest Rate Cap Agreement (together with the confirmation and schedules relating thereto) in form and substance reasonably satisfactory to Lender between
Borrower and an Acceptable Counterparty or a Replacement Interest Rate Cap Agreement. 
  
 “Junior Lender Security Documents” shall mean the Borrower Guaranty, the Second Mortgage and any other mortgage, deed of trust, deed to secure debt or other similar instrument encumbering the Property
or any portion thereof, the Equity Pledge Agreement or other pledge agreement or other grant of Lien encumbering any of the direct ownership interests in the Borrower and securing, among other things, the Other Loans or any portion thereof.

  
 “Lease” shall mean any lease, sublease or
subsublease, letting, license, concession or other agreement (whether written or oral and whether now or hereafter in effect) pursuant to which any Person is granted a possessory interest in, or right to use or occupy all or any portion of any space
in the Property, and (a) every modification, amendment or other agreement relating to such lease, sublease, subsublease, or other agreement entered into in connection with such lease, sublease, subsublease, or other agreement, and (b) every
guarantee of the performance and 

  

 9 

 
observance of the covenants, conditions and agreements to be performed and observed by the other party thereto. 
  
 “Legal Requirements” shall mean all federal, state, county,
municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities affecting the Property or any part thereof, or the construction, use, alteration or operation
thereof, or any part thereof, whether now or hereafter enacted and in force, including, without limitation, the Americans with Disabilities Act of 1990, and all permits, licenses and authorizations and regulations relating thereto, and all
covenants, agreements, restrictions and encumbrances contained in any instruments, either of record or known to Borrower, at any time in force affecting the Property or any part thereof, including, without limitation, any which may (a) require
repairs, modifications or alterations in or to the Property or any part thereof, or (b) in any way limit the use and enjoyment thereof. 
  
 “Lender” shall have the meaning set forth in the introductory paragraph hereto, together with its successors and assigns. 
  
 “Letter of Credit” shall mean an irrevocable, unconditional
and transferable letter of credit acceptable to Lender and the Rating Agencies (either an annual, automatically renewing, letter of credit or one which does not expire until at least ten (10) Business Days after the Maturity Date) in favor of Lender
and entitling Lender to draw thereon in the continental United States, issued by a domestic Eligible Institution or the U.S. agency or branch of a foreign Eligible Institution. 
  
 “Liabilities” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “LIBOR” shall mean, with respect to each Interest Period,
the rate (expressed as a percentage per annum, for a one-month period, that appears on Telerate Page 3750 (or the successor thereto) as of 11:00 a.m., London time, on the related Determination Date. If such rate does not appear on Telerate Page 3750
as of 11:00 a.m., London time, on such Determination Date, LIBOR shall be the arithmetic mean of the offered rates (expressed as a percentage per annum) for deposits in U.S. dollars for a one-month period that appear on the Reuters Screen Libor Page
as of 11:00 a.m., London time, on such Determination Date, if at least two such offered rates so appear. If fewer than two such offered rates appear on the Reuters Screen Libor Page as of 11:00 a.m., London time, on such Determination Date, Lender
shall request the principal London office of any four major reference banks in the London interbank market selected by Lender 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 a one-month period as of 11:00 a.m., London time, on such Determination Date for the amounts of not less than U.S. $1,000,000. If at least two such offered quotations are so provided, LIBOR shall be the
arithmetic mean of such quotations. If fewer than two such quotations are so provided, Lender shall request any three major banks in New York City selected by Lender to provide such bank’s rate (expressed as a percentage per annum) for loans in
U.S. dollars to leading European banks for a one-month period as of approximately 11:00 a.m., New York City time on the applicable Determination Date for amounts of not less than U.S. $1,000,000. If at least two such rates are so provided, LIBOR
shall be the arithmetic mean of such rates. LIBOR shall be determined conclusively by Lender or its agent. 
  

 10 

 “LIBOR Loan” shall mean the Loan at such time as interest thereon accrues at a rate of
interest based upon LIBOR. 
  
 “Licenses” shall
have the meaning set forth in Section 4.1.22 hereof. 
  
 “Lien” shall mean any mortgage, deed of trust, lien, pledge, hypothecation, easement, restrictive covenant, preference, assignment, security interest or any other encumbrance, charge or transfer of, or any agreement to
enter into or create, any of the foregoing, on or affecting Borrower, the Property or any portion thereof or any interest therein, or any direct or indirect interest in Borrower or Principal, including, without limitation, any conditional sale or
other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, the filing of any financing statement, and mechanic’s, materialmen’s and other similar liens and encumbrances.

  
 “Loan” shall mean the loan in the original
principal amount of TWELVE MILLION AND NO/100 DOLLARS ($12,000,000.00), made by Lender to Borrower pursuant to this Agreement. 
  
 “Loan Documents” shall mean, collectively, this Agreement, the Note, the Mortgage, the Assignment of Leases, the Environmental Indemnity,
the Assignment of Management Agreement, the Guaranty, the Cash Management Agreement, the Property Account Agreement, the Equity Pledge Agreement, the Collateral Assignment of Interest Rate Cap Agreement, the Junior Lender Security Documents and all
other documents executed and/or delivered in connection with the Loan. 
  
 “London Business Day” shall mean any day other than a Saturday, Sunday or any other day on which commercial banks in London, England are not open for business. 
  
 “Management Agreement” shall mean the management agreement entered into by and between Borrower and the
Manager, as the same has been and may be amended, modified or supplemented from time to time, pursuant to which the Manager is to provide management and other services with respect to the Property, or, if the context requires, the Replacement
Management Agreement. 
  
 “Manager” shall mean
Wyndham Management Corporation, a Delaware corporation, or, if the context requires, a Qualified Manager who is managing the Property in accordance with the terms and provisions of this Agreement. 
  
 “Material Adverse Effect” shall mean any material adverse
change in the use, operation or value of the Property and/or the business operations and/or the financial condition of a Significant Party. 
  
 “Maturity Date” shall mean the Initial Maturity Date (as the same may be extended in accordance with Sections 2.7 hereof), or such
other date on which the final payment of principal of the Note becomes due and payable as therein or herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise. 
  

 11 

 “Maximum Legal Rate” shall mean the maximum nonusurious interest rate, if any, that at
any time or from time to time may be contracted for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents, under the laws of such state or states whose laws are held by
any court of competent jurisdiction to govern the interest rate provisions of the Loan. 
  
 “Mezzanine Borrower” shall mean the obligor under any Mezzanine Loan, which entity shall meet the requirements set forth in Section 9.8(b) hereof. 
  
 “Mezzanine Loan” shall have the meaning set forth in
Section 9.8 hereof. 
  
 “Mezzanine Option”
shall have the meaning set forth in Section 9.8 hereof. 
  
 “Moody’s” shall mean Moody’s Investors Service, Inc. 
  
 “Monthly Interest Payment” shall have the meaning set forth in Section 2.3.1. 
  
 “Mortgage” shall mean that certain first priority Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing,
dated the date hereof, executed and delivered by Borrower as security for the Loan and encumbering the Property, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Mortgage Borrower” shall have the meaning set forth in
Section 9.8 hereof. 
  
 “Mortgage Loan”
shall have the meaning set forth in Section 9.8 hereof. 
  
 “Mortgage Lender” shall have the meaning set forth in Section 9.8 hereof. 
  
 “Net Cash Flow” shall mean, for any period, the amount obtained by subtracting (a) Operating Expenses and (b) an amount equal to four
percent (4%) of Gross Income from Operations for such period, from Gross Income from Operations for such period. 
  
 “Net Cash Flow Schedule” shall have the meaning set forth in Section 5.1.11(b) hereof. 
  
 “Net Cash Flow Failure” shall mean that, at the end of any
calendar quarter, the Aggregate Net Cash Flow for the preceding twelve (12) month period is less than eighty percent (80%) of the Aggregate Net Cash Flow as of the Closing Date, as determined by Lender in its sole discretion, and in each case
determining such amounts only for the Property and such Other Properties remaining subject to the liens of the Other Mortgages as of the date such determination is made. 
  
 “Net Operating Income” shall mean, for any period, the amount obtained by subtracting Operating Expenses
for such period from Gross Income from Operations for such period. 
  
 “Net Proceeds” shall have the meaning set forth in Section 6.4(b) hereof. 
  
 “Net Proceeds Deficiency” shall have the meaning set forth in Section 6.4(b)(vi) hereof. 
  

 12 

 “Note” shall mean that certain Promissory Note of even date herewith in the principal
amount of TWELVE MILLION AND NO/100 DOLLARS ($12,000,000.00), made by Borrower in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Notice” shall have the meaning set forth in Section
10.6 hereof. 
  
 “Obligations” shall mean,
collectively, Borrower’s obligations for the payment of the Debt and the performance of the Other Obligations. 
  
 “Offering Document Date” shall have the meaning set forth in Section 5.1.11(d)(iv) hereof. 
  
 “Officer’s Certificate” shall mean a certificate
delivered to Lender by Borrower which is signed by an authorized senior officer of the general partner or managing member of Borrower, as applicable, and solely with respect to the delivery of financial statements required pursuant to Section
5.1.11 hereof, such certificate may also be signed by an authorized senior officer of Manager. 
  
 “Operating Expenses” shall mean, for any period, the total of all expenses, computed in accordance with GAAP, of whatever kind relating
to the operation, maintenance and/or management of the Property, which expenditures are incurred on a regular monthly or other periodic basis, including without limitation, utilities, ordinary repairs and maintenance, insurance, license fees,
property taxes and assessments, advertising expenses, management fees, payroll and related taxes, computer processing charges, operational equipment or other lease payments as approved by Lender, and other similar costs, but excluding depreciation,
Debt Service, Capital Expenditures, and contributions to the FF&E Reserve Funds, the Tax and Insurance Escrow Funds, the Debt Service Reserve Funds and any other reserves required under the Loan Documents. 
  
 “Other Borrowers” shall mean, individually or collectively,
Wyndham Commerce Owner, LLC, Ft. Lauderdale Owner, LLC, and Summerfield Hanover Owner, LLC. 
  
 “Other Borrower Loan Documents” shall mean, the loan agreements, the promissory notes, the mortgages, the deeds of trust, the assignments of leases and rents, and every other document or agreement
executed by the Other Borrowers, or any of them, or any other Person for the benefit of Lender, securing, evidencing or otherwise executed in connection with any one or more of the Other Loans and/or the Loan, as any of the same may hereafter be
amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Other Borrower Obligations” shall mean the Other Loans together with all obligations of every Other Borrower under the Other Borrower Loan Documents. 
  
 “Other Charges” shall mean all maintenance charges,
impositions other than Taxes, and any other charges, in each case imposed by Governmental Authorities, including, without limitation, vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Property, now or
hereafter levied or assessed or imposed against the Property or any part thereof. 
  

 13 

 “Other Loan Agreements” shall mean each Loan Agreement entered into between any Other
Borrower and Lender in respect of the applicable Other Loan. 
  
 “Other Loan” shall mean the other loans made by Lender to the Other Borrowers. 
  
 “Other Loan Shortfall” shall have the meaning set forth in Section 2.6.3(b) hereof. 
  
 “Other Mortgages” shall mean the other mortgages granted by
the Other Borrowers to, or in favor of, Lender with respect to the Other Properties. 
  
 “Other Property” shall mean, collectively, each parcel of real property (other than the Property) together with the improvements thereon and other real property appurtenant thereto securing any one or
more of the Other Loans. 
  
 “Other Obligations”
shall mean: (a) the performance of all obligations of Borrower contained herein; (b) the performance of each obligation of Borrower contained in any other Loan Document; and (c) the performance of each obligation of Borrower contained in any
renewal, extension, amendment, modification, consolidation, change of, substitution of, or replacement for, all or any part of this Agreement, the Note or any other Loan Documents. 
  
 “Outstanding Principal Balance” shall mean, as of any date, the outstanding principal balance of the Loan.

  
 “Payment Date” shall mean the ninth (9th) day
of each calendar month during the term of the Loan or, if such day is not a Business Day, the immediately preceding Business Day. 
  
 “Payment Direction Letters” shall have the meaning set forth in Section 2.6.1. 
  
 “Permitted Encumbrances” shall mean, collectively (a) the
Liens and security interests created by the Loan Documents, (b) all Liens, encumbrances and other matters disclosed in the Title Insurance Policy, (c) Liens, if any, for Taxes imposed by any Governmental Authority not yet due or delinquent, (d)
Financing Leases permitted pursuant to the provisions of this Agreement, and (e) such other title and survey exceptions as Lender has approved or may approve in writing in Lender’s sole discretion. 
  
 “Permitted Investments” shall have the meaning set forth in
the Cash Management Agreement. 
  
 “Person” shall
mean any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association, any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary
acting in such capacity on behalf of any of the foregoing. 
  
 “Personal Property” shall have the meaning set forth in the granting clause of the Mortgage. 
  
 “Physical Conditions Report” shall mean a report prepared by a company satisfactory to Lender regarding the physical condition of the
Property, satisfactory in form and substance to 

  

 14 

 
Lender in its sole discretion, which report shall, among other things, (i) confirm that the Property and its use comply, in all material respects, with all
applicable Legal Requirements (including zoning, subdivision and building codes and laws), and (ii) include a copy of a final certificate of occupancy with respect to all Improvements (unless previously delivered to Lender). 
  
 “Policies” shall have the meaning specified in Section
6.1(b) hereof. 
  
 “Prepayment Premium” shall
mean an amount equal to the following: one percent (1.0%) of the principal balance of the Loan being prepaid if the prepayment occurs on or after the date hereof through, and including, July 9, 2005. 
  
 “Prime Rate” shall mean the annual rate of interest publicly
announced by Citibank, N.A. in New York, New York, as its base rate, as such rate shall change from time to time. If Citibank, N.A. ceases to announce a base rate, Prime Rate shall mean the rate of interest published in The Wall Street
Journal from time to time as the “Prime Rate.” If more than one “Prime Rate” is published in The Wall Street Journal for a day, the average of such “Prime Rates” shall be used, and such average shall be
rounded up to the nearest one-hundredth (1/100th) of one percent. If The Wall Street Journal ceases to
publish the “Prime Rate,” Lender shall select an equivalent publication that publishes such “Prime Rate,” and if such “Prime Rates” are no longer generally published or are limited, regulated or administered by a
governmental or quasigovernmental body, then Lender shall select a comparable interest rate index. 
  
 “Prime Rate Loan” shall mean the Loan at such time as interest thereon accrues at a rate of interest based upon the Prime Rate.

  
 “Prime Rate Spread” shall mean the difference
(expressed as the number of basis points) between (a) LIBOR plus the Spread on the date LIBOR was last applicable to the Loan and (b) the Prime Rate on the date that LIBOR was last applicable to the Loan; provided, however, in no event
shall such difference be a negative number. 
  
 “Principal” shall mean the Special Purpose Entity corporation which is the managing member of Borrower. 
  
 “Property” shall mean each parcel of real property, the Improvements thereon and all personal property owned by Borrower and encumbered
by the Mortgage, together with all rights pertaining to such property and Improvements, as more particularly described in the granting clause of the Mortgage and referred to therein as the “Property”. 
  
 “Property Account” shall have the meaning set forth in
Section 2.6.1(a) hereof. 
  
 “Property Account
Agreement” shall mean that certain Property Account Agreement, dated as of the date hereof, by and among Borrower, Lender and Property Account Bank, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time. 
  
 “Property Account Bank” shall
mean Wachovia Bank, National Association, or any successor or permitted assigns thereof. 
  

 15 

 “Provided Information” shall mean any and all financial and other information provided
at any time by, or on behalf of, any Indemnifying Person with respect to the Property, any Significant Party and/or an Affiliated Manager. 
  
 “Public Company” shall mean a corporation or other Person whose stock or ownership interests or (ii) depository receipts or their
equivalent are publicly traded on a nationally recognized stock exchange, including, without limitation, NASDAQ or on the leading recognized stock exchange in Spain, Germany, Italy, Canada, France, Tokyo, Australia, Singapore, England or Hong Kong,
or in another country which requires companies publicly traded on such leading exchange to provide public information reasonably comparable to that required in the United States. 
  
 “Qualified Borrower” shall mean a Special Purpose Entity and otherwise approved by Lender in its sole
discretion. 
  
 “Qualified Manager” shall mean
either (a) Manager, or (b) a reputable and experienced management organization (which may be an Affiliate of Borrower) possessing experience in managing properties similar in size, scope, use and value as the Property, provided, that,
following a Securitization, or at such time as the Loan is scheduled to be included in a Securitization, Borrower shall have obtained prior written confirmation from the applicable Rating Agencies that management of the Property by such Person will
not cause a downgrade, withdrawal or qualification of the then current ratings of the Securities or any class thereof. 
  
 “Qualified Transferee” shall mean any one of the following Persons, subject to the reasonable determination of Lender that such Person
satisfies the applicable requirements set forth in this definition and which is not otherwise an Embargoed Person: 
  
 (a) a pension fund, pension trust or pension account that has total assets of at least $500 million that is managed by an entity that
controls or manages at least $1 billion of real estate equity assets; 
  
 (b) a pension fund advisor that controls or manages at least $1 billion of real estate equity assets immediately prior to any proposed transfer hereunder; 
  
 (c) an insurance company that is subject to supervision by the insurance commission, or a similar official
or agency, of a State or territory of the United States (including the District of Columbia), which has a net worth, as of a date no more than six (6) months prior to the date of the proposed transfer hereunder, of at least $500 million and controls
real estate equity assets of at least $1 billion immediately prior to any proposed transfer hereunder; 
  
 (d) a corporation organized under the banking or trust company laws of the United States or any State or territory of the United States
(including the District of Columbia) that has a combined capital and surplus of at least $500 million and that immediately prior to a proposed transfer hereunder controls real estate equity assets of at least $1 billion; or 
  
 (e) any equity (a)(i) with a long-term unsecured debt rating
from the Rating Agencies of at least BBB- (or its equivalent) or (b) (1) that owns or operates, together with its affiliates, at least ten (10) first class hotel properties, (2) that has a net worth as of a date no more 

  

 16 

 
than six (6) months prior to the date of any proposed transfer hereunder of at least $500 million and (3) that controls, together with its Affiliates, real
estate equity assets of at least $1 billion immediately prior to any proposed transfer hereunder. 
  
 “Quarterly Net Cash Flow Test” shall have the meaning set forth in Section 2.6.6. 
  
 “Rating Agencies” shall mean each of S&P, Moody’s
and Fitch, or any other nationally recognized statistical rating agency which rates the Securities. 
  
 “Release Default” shall mean (i) a monetary Default under any Loan Document or (ii) any other material Default under any Loan Document of
which Lender has given written notice thereof to Borrower whether or not the applicable grace or cure period, if any, has expired. 
  
 “REMIC Trust” shall mean a “real estate mortgage investment conduit” within the meaning of Section 860D of the Code that holds
the Note. 
  
 “Rents” shall mean all rents,
receipts, revenues, income (including service charges), fees, payments and proceeds of sales of every kind received by or on behalf of Borrower, directly or indirectly, from operating the Property for that period, and services rendered to, and
rentals, percentage rentals and other fees, payments and charges received from, tenants, subtenants, licensees, concessionaires and occupants of commercial, hotel, public and retail space located in or at the Property, calculated on a cash basis,
whether in cash or on credit, including, without limitation, revenues from the rental of rooms, guest suites, conference and banquet rooms, food and beverage facilities, telephone services, laundry, vending, television and parking at the Property,
and other fees and charges resulting from the operations of the Property by or on behalf of Borrower in the ordinary course of business, and proceeds, if any, from business interruption or other loss of income insurance (net of the costs of
collection thereof) and also including any proceeds received by Borrower in respect of the Interest Rate Cap Agreement, non-recurring income and non-Property related income (as determined by Lender in its reasonable discretion), security deposits
received from any tenant but only when the same are applied to rent or any other of such tenant’s obligations in accordance with the terms of such tenant’s Lease, any loan proceeds or proceeds of capital or equity contributions received by
Borrower, Insurance Proceeds and Condemnation Proceeds, proceeds from the sale of FF&E no longer required for the operation of the Property, and rents from month-to-month tenants or tenants that are included in any Bankruptcy Action. 

 
 “Replaced Borrower” shall have the meaning set forth in
Section 2.8 hereof. 
  
 “Replaced Loan”
shall have the meaning set forth in Section 2.8 hereof. 
  
 “Replacement Interest Rate Cap Agreement” means an interest rate cap agreement from an Acceptable Counterparty with a Strike Price identical to, and all other terms substantially similar to those set forth in, the Interest
Rate Cap Agreement except that the same shall be effective in connection with replacement of the Interest Rate Cap Agreement following a downgrade, withdrawal or qualification of the long-term unsecured debt rating of the Counterparty;
provided, that, to the extent any such interest rate cap agreement does not meet the foregoing requirements, a “Replacement Interest Rate Cap Agreement” shall be such interest rate cap agreement approved in writing by Lender
and for which Lender has received a confirmation 

  

 17 

 
from the applicable Rating Agencies that such Replacement Interest Rate Cap Agreement will not cause a downgrade, withdrawal or qualification of the then
current rating of the Securities or any class thereof. 
  
 “Replacement Management Agreement” shall mean, collectively: (a) either (i) a management agreement with a Qualified Manager substantially in the same form and substance as the Management Agreement, or (ii) a management
agreement with a Qualified Manager, which management agreement shall be reasonably acceptable to Lender in form and substance, provided, with respect to this subclause (ii), Lender, at its option, may require that Borrower obtain confirmation
from the applicable Rating Agencies that such management agreement will not cause a downgrade, withdrawal or qualification of the then current rating of the Securities or any class thereof; and (b) an assignment of management agreement and
subordination of management fees substantially in the form then used by Lender (or of such other form and substance reasonably acceptable to Lender), executed and delivered to Lender by Borrower and such Qualified Manager at Borrower’s expense.

  
 “Required Repair Account” shall have the
meaning set forth in Section 7.1.1 hereof. 
  
 “Required Repair Funds” shall have the meaning set forth in Section 7.1.1 hereof. 
  
 “Required Repairs” shall have the meaning set forth in Section 7.1.1 hereof. 
  
 “Reserve Funds” shall mean, collectively, the Tax and
Insurance Escrow Funds, the FF&E Reserve Funds, the Debt Service Reserve Funds, the Required Repair Funds, and any other escrow fund established pursuant to the Loan Documents. 
  
 “Restoration” shall mean the repair and restoration of the Property after a Casualty or Condemnation as
nearly as possible to the condition the Property was in immediately prior to such Casualty or Condemnation, with such alterations as may be reasonably approved by Lender (it being agreed that the commencement of the preparation of plans and
specifications shall constitute commencement of the Restoration). 
  
 “Restricted Party” shall mean, collectively (a) Borrower, Principal, Guarantor and any Affiliated Manager and (b) any shareholder, partner, member, non-member manager, direct or indirect legal or beneficial owner, agent and
employee of, Borrower, Principal, Guarantor, any Affiliated Manager or any non-member manager. 
  
 “RICO” shall mean Racketeer Influenced and Corrupt Organizations Act. 
  
 “S&P” shall mean Standard & Poor’s Ratings Group, a division of the McGraw-Hill Companies. 
  
 “Sale or Pledge” shall mean a voluntary or involuntary sale,
conveyance, assignment, transfer, encumbrance or pledge of a legal or beneficial interest. 
  
 “Second Extension Commencement Date” shall have the meaning set forth in Section 2.7.2. 
  

 18 

 “Second Extension Term” shall have the meaning set forth in Section 2.7.2.

  
 “Second Mortgage” shall mean that certain
Second Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated the date hereof, executed and delivered by Borrower to Lender as additional security for, among other things, (x) the Borrower’s obligations under the
Borrower Guaranty and (y) the Other Borrower Obligations, and encumbering the Property, as same may be amended, restated, replaced, supplemented or otherwise modified from time to time, which Second Mortgage shall be subject and subordinate to the
Liens of the Mortgage and the Assignment of Leases. 
  
 “Securities” shall have the meaning set forth in Section 9.1 hereof. 
  
 “Securities Act” shall have the meaning set forth in Section 9.2(a) hereof. 
  
 “Securitization” shall have the meaning set forth in
Section 9.1 hereof. 
  
 “Servicer” shall
have the meaning set forth in Section 9.6 hereof. 
  
 “Servicing Agreement” shall have the meaning set forth in Section 9.6 hereof. 
  
 “Severed Loan Documents” shall have the meaning set forth in Section 8.2(b) hereof. 
  
 “Significant Party” shall mean each of Borrower, Guarantor
and Principal. 
  
 “Special Purpose Entity” shall
mean a corporation, limited partnership or limited liability company which at all times prior to, on and after the date hereof: 
  
 (a) was, is and will be organized solely for the purpose of (i) acquiring, developing, owning, holding, selling, leasing, transferring,
exchanging, managing and/or operating the Property, entering into this Agreement and the other Loan Documents with Lender, refinancing the Property in connection with a permitted repayment of the Loan, and transacting lawful business that is
incident, necessary and appropriate to accomplish the foregoing; or (ii) acting as managing member of the limited liability company or general partner of the limited partnership that owns and operates the Property; 
  
 (b) has not been, is not, and will not be engaged in any
business unrelated to (i) the acquisition, development, ownership, management and/or operation of the Property, or (ii) acting as a member of the limited liability company that owns and operates the Property; 
  
 (c) has not had, does not have, and will not have, any
assets other than those related to the Property, its membership interest in the limited liability company that owns and operates the Property, or acts as the managing member of either of the foregoing, as applicable; 
  
 (d) has not engaged in, sought or consented to and will not
engage in, seek or consent to, any dissolution, winding up, liquidation, consolidation, merger, sale of all or substantially all of its assets, transfer of membership interests or amendment of its articles of incorporation, articles of organization
or operating agreement (as applicable) with respect to the matters set forth in this definition; 
  

 19 

 (e) if such entity is a corporation, has had, now has and will have at least two (2)
Independent Directors, and has not caused or allowed, and will not cause or allow, the board of directors of such entity to take any action requiring the unanimous affirmative vote of one hundred percent (100%) of the members of its board of
directors unless two (2) Independent Directors shall have participated in such vote; 
  
 (f) if such entity is a limited liability company with more than one member, has had, now has and will have at least one member that is a
Special Purpose Entity that is a corporation that has at least two (2) Independent Directors and that owns at least one percent (1.0%) of the equity of the limited liability company; 
  
 (g) if such entity is a limited liability company with only one member, has been, now is, and will be a
limited liability company that has (i) as its only member a non-managing member, (ii) at least two (2) Independent Managers and has not caused or allowed, and will not cause or allow, the board of managers of such entity to take any action requiring
the unanimous affirmative vote of one hundred percent (100%) of the managers unless two (2) Independent Managers shall have participated in such vote, and (iii) at least one (1) springing member that will become the non-managing member of such
entity upon the dissolution of the existing non-managing member; 
  
 (h) if such entity is (i) a limited liability company, has had, now has, and will have articles of organization and/or an operating agreement, as applicable, or (ii) a corporation, has had, now has, and will have a
certificate of incorporation that, in each of the foregoing cases, provides that such entity will not: (A) dissolve, merge, liquidate or consolidate; (B) sell all or substantially all of its assets or the assets of Borrower (as applicable); (C)
engage in any other business activity or amend its organizational documents with respect to the matters set forth in this definition without the consent of Lender; or (D) without the affirmative vote of two (2) Independent Directors and of all other
directors of the corporation (that is such entity or the managing or co-managing member of such entity), file a bankruptcy or insolvency petition or otherwise institute insolvency proceedings with respect to itself or to any other entity in which it
has a direct or indirect legal or beneficial ownership interest; 
  
 (i) has been, is and intends to remain solvent and has paid and intends to continue to pay its debts and liabilities (including, as applicable, shared personnel and overhead expenses) from its assets as the same have
or shall become due, and has maintained, is maintaining and intends to maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations;

  
 (j) has not failed, and will not fail, to
correct any known misunderstanding regarding the separate identity of such entity; 
  
 (k) has maintained and will maintain its accounts, books and records separate from any other Person and has filed and will file its own
tax returns, except to the extent that it has been or is required to file consolidated tax returns by law; 
  

 20 

 (l) has maintained and will maintain its own records, books, resolutions and agreements;

  
 (m) other than as provided in this Agreement
and the Cash Management Agreement, (i) has not commingled, and will not commingle, its funds or assets with those of any other Person and (ii) has not participated and will not participate in any cash management system with any other Person;

  
 (n) has held and will hold its assets in its
own name; 
  
 (o) has conducted and will conduct
its business in its name or in a name franchised or licensed to it by an entity other than an Affiliate of Borrower, except for services rendered under a business management services agreement with an Affiliate that complies with the terms contained
in subsection (cc) below, so long as the manager, or equivalent thereof, under such business management services agreement holds itself out as an agent of Borrower; 
  
 (p) has maintained and will maintain its financial statements, accounting records and other entity documents
separate from any other Person and has not permitted, and will not permit, its assets to be listed as assets on the financial statement of any other entity except as required by GAAP; provided, however, that any such consolidated
financial statement shall contain a note indicating that its separate assets and liabilities are neither available to pay the debts of the consolidated entity nor constitute obligations of the consolidated entity; 
  
 (q) has paid and will pay its own liabilities and expenses,
including the salaries of its own employees, out of its own funds and assets, and has maintained and will maintain a sufficient number of employees in light of its contemplated business operations; 
  
 (r) has observed and will observe all partnership, corporate
or limited liability company formalities, as applicable; 
  
 (s) from and after the date hereof, will have no Indebtedness other than (i) the Loan, (ii) unsecured trade and operational debt incurred in the ordinary course of business relating to the ownership and operation of
the Property and the routine administration of Borrower, in amounts not to exceed three percent (3%) of the original principal amount of the Loan, in the aggregate, which liabilities are not more than sixty (60) days past the date incurred, are not
evidenced by a note and are paid when due, and which amounts are normal and reasonable under the circumstances, (iii) Financing Leases except as permitted pursuant to this Agreement, and (iv) such other liabilities (including the Borrower Guaranty)
that are permitted or required pursuant to this Agreement; 
  
 (t) has not assumed or guaranteed or become obligated for, and will not assume or guarantee or become obligated for the debts of any other Person and has not held out and will not hold out its credit as being
available to satisfy the obligations of any other Person except as permitted pursuant to this Agreement other than the Borrower Guaranty and other than prior guarantees from which Borrower has been released and discharged; 
  
 (u) has not acquired and will not acquire obligations or
securities of its partners, members or shareholders or any other Affiliate; 
  

 21 

 (v) has allocated and will allocate, fairly and reasonably, any overhead expenses that
are shared with any Affiliate, including, but not limited to, paying for shared office space and services performed by any employee of an Affiliate; 
  
 (w) has maintained and used, now maintains and uses, and will maintain and use, separate stationery, invoices and checks bearing its name.
The stationery, invoices, and checks utilized by the Special Purpose Entity or utilized to collect its funds or pay its expenses have borne and shall bear its own name and have not borne and shall not bear the name of any other entity unless such
entity is clearly designated as being the Special Purpose Entity’s agent; 
  
 (x) has not pledged and will not pledge its assets for the benefit of any other Person other than in connection with the Other Loans;

  
 (y) has held itself out and identified
itself, and will hold itself out and identify itself, as a separate and distinct entity under its own name or in a name franchised or licensed to it by an entity other than an Affiliate of Borrower and not as a division or part of any other Person,
except for services rendered under a business management services agreement with an Affiliate that complies with the terms contained in subsection (cc) below, so long as the manager, or equivalent thereof, under such business management services
agreement holds itself out as an agent of Borrower; 
  
 (z) has maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual assets from those of any other Person; 
  
 (aa) has not made and will not make loans to any Person or
hold evidence of indebtedness issued by any other Person or entity (other than cash and investment-grade securities issued by an entity that is not an Affiliate of or subject to common ownership with such entity); 
  
 (bb) has not identified and will not identify its partners,
members or shareholders, or any Affiliate of any of them, as a division or part of it, and has not identified itself, and shall not identify itself, as a division of any other Person; 
  
 (cc) has not entered into or been a party to, and will not enter into or be a party to, any transaction with
its partners, members, shareholders or Affiliates except (i) in the ordinary course of its business and on terms which are intrinsically fair, commercially reasonable and are no less favorable to it than would be obtained in a comparable
arm’s-length transaction with an unrelated third party, and (ii) in connection with this Agreement; 
  
 (dd) has not had and will not have any obligation to indemnify, and has not indemnified and will not indemnify its partners, officers,
directors or members, as the case may be, unless such an obligation was and is fully subordinated to the Obligations and will not constitute a claim against the Obligations in the event that cash flow in excess of the amount required to pay the
Obligations is insufficient to pay such obligation; 
  
 (ee) if such entity is a corporation, it has considered and shall consider the interests of its creditors in connection with all corporate actions; 
  

 22 

 (ff) does not and will not have any of its obligations guaranteed by any Affiliate other
than in connection with the Other Loans; and 
  
 (gg) has complied and will comply with all of the terms and provisions contained in its organizational documents. The statement of facts contained in its organizational documents are true and correct and will remain true and correct.

  
 “Spread” shall mean one and 20/100 percent
(1.20%). 
  
 “Standard Statements” shall have the
meaning set forth in Section 5.1.11(d)(i) hereof. 
  
 “State” shall mean the State or Commonwealth in which the Property or any part thereof is located. 
  
 “Strike Price” shall mean seven percent (7%). 
  
 “Substitute Borrower” shall have the meaning set forth in Section 2.8. 
  
 “Substitute Loan Documents” shall have the meaning set forth
in Section 2.8. 
  
 “Substitute Property”
shall have the meaning set forth in Section 2.8. 
  
 “Substitution” shall have the meaning set forth in Section 2.8. 
  
 “Substitution Date” shall have the meaning set forth in Section 2.8. 
  
 “Substitution Loan” shall have the meaning set forth in Section 2.8. 
  
 “Survey” shall mean a survey of the Property prepared
pursuant to the requirements contained in Section 4.1.27 hereof. 
  
 “Sweep Event ” shall mean the period following the occurrence of (a) an Event of Default, or (b) a default beyond the expiration of applicable notice and cure periods under the Management Agreement, or (c) a Net Cash
Flow Failure and ending on a “Sweep Event Termination.” A Sweep Event shall be terminated (a “Sweep Event Termination”) (i) with respect to an Event of Default (but not more than one (1) time during the term of the Loan,
as the same may be extended) provided such Event of Default has been cured and such cure is accepted by Lender, provided that Lender has not otherwise accelerated the Loan, moved for a receiver or commenced foreclosure proceedings, and/or (ii) with
respect to a default by Manager under the Management Agreement, the replacement of the Manager with a Qualified Manager pursuant to a Replacement Management Agreement, and/or (iii) with respect to a Net Cash Flow Failure (but not more than once
every twelve (12) months) if, for the trailing twelve (12) month period preceding the date of determination, the Aggregate Net Cash Flow is equal to or greater than eighty percent (80%) of the Aggregate Net Cash Flow as of the Closing Date for two
(2) consecutive calendar quarters. 
  
 “Tax and Insurance
Escrow Funds” shall have the meaning set forth in Section 7.2 hereof. 
  

 23 

 “Taxes” shall mean all real estate and personal property taxes, assessments, water rates
or sewer rents, now or hereafter levied or assessed or imposed against the Property or part thereof, together with all interest and penalties thereon. 
  
 “Third Extension Commencement Date” shall have the meaning set forth in Section 2.7.3. 
  
 “Third Extension Term” shall have the meaning set forth in
Section 2.7.3. 
  
 “Threshold Amount”
shall have the meaning set forth in Section 5.1.21 hereof. 
  
 “Title Company” shall mean, collectively, Fidelity National Title Insurance Company and National Land Tenure, or any successor title company acceptable to Lender and licensed to issue title insurance in the State in which
the Property is located. 
  
 “Title Insurance
Policies” shall mean collectively, (a) an ALTA mortgagee title insurance policy in a form acceptable to Lender (or, if the Property is in a State which does not permit the issuance of such ALTA policy, such form as shall be permitted in
such State and acceptable to Lender) issued with respect to the Property and insuring the lien of the Mortgage encumbering the Property, and (b) an ALTA mortgagee title insurance policy in a form acceptable to Lender (or, if the Property is in a
State which does not permit the issuance of such ALTA policy, such form as shall be permitted in such State and acceptable to Lender) issued with respect to the Property and insuring the lien of the Second Mortgage encumbering the Property.

  
 “Transfer” shall have the meaning set forth
in Section 5.2.10(b) hereof. 
  
 “Transferee” shall have the meaning set forth in Section 5.2.10(e) hereof. 
  
 “UCC” or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in the State in which the
Property is located. 
  
 “Unavoidable Delays”
means delays due to strikes, lockouts, acts of God, unusually severe weather, inability to obtain labor or materials (except as may be due to Borrower’s or any of Borrower’s contractors’ or subcontractors’ economic inability to
acquire same), government restrictions, enemy action, civil commotion, fire, casualties or similar causes beyond Borrower’s reasonable control. 
  
 “U.S. Obligations” shall mean non-redeemable securities evidencing an obligation to timely pay principal and/or interest in a full and
timely manner that are direct obligations of the United States of America for the payment of which its full faith and credit is pledged. 
  
 “Wyndham” shall have the meaning set forth in Section 5.2.10(c). 
  
 Section 1.2 Principles of Construction. All references to sections and schedules are to sections and schedules in or
to this Agreement unless otherwise specified. All uses of the word “including” shall mean “including, without limitation” unless the context shall indicate otherwise. Unless otherwise specified, the words “hereof,”
“herein” and “hereunder” and words 

  

 24 

 
of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement and the word
“including” shall mean “including but not limited to”. Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms of the terms so defined.

  
 ARTICLE 2 
  
 GENERAL TERMS 
  
 Section 2.1 Loan Commitment; Disbursement to Borrower. 
  
 2.1.1 Agreement to Lend and Borrow. Subject to and
upon the terms and conditions set forth herein, Lender hereby agrees to make and Borrower hereby agrees to borrow the Loan on the Closing Date. 
  
 2.1.2 Single Disbursement to Borrower. Borrower may request and receive only one disbursement hereunder in respect of the Loan and
any amount borrowed and repaid hereunder in respect of the Loan may not be reborrowed. 
  
 2.1.3 The Note, Mortgage and Loan Documents. The Loan shall be evidenced by the Note and secured by the Mortgage, the Assignment of
Leases and the other Loan Documents. 
  
 2.1.4
Use of Proceeds. Borrower shall use the proceeds of the Loan to (a) refinance the Property and/or repay and discharge any existing loans relating to the Property, (b) pay all past-due Basic Carrying Costs, if any, with respect to the
Property, (c) make initial deposits into the Reserve Funds on the Closing Date in the amounts provided herein and in the other Loan Documents, (d) pay costs and expenses incurred in connection with the closing of the Loan, as approved by Lender, (d)
fund any working capital requirements of the Property, and (e) distribute the balance, if any, to Borrower. 
  
 Section 2.2 Interest Rate. 
  
 2.2.1 Interest Generally. Interest on the Outstanding Principal Balance shall accrue from the Closing Date to but excluding the
Maturity Date at the Applicable Interest Rate. 
  
 2.2.2 Interest Calculation. Interest on the Outstanding Principal Balance shall be calculated by multiplying (a) the actual number of days elapsed in the period for which the calculation is being made by (b) a daily rate based on a
three hundred sixty (360) day year by (c) the Outstanding Principal Balance. 
  
 2.2.3 Determination of Interest Rate. 
  
 (a) The Applicable Interest Rate with respect to the Loan shall be: (i) LIBOR plus the Spread with respect to the applicable Interest Period for a LIBOR Loan; or (ii) the Prime Rate plus the Prime Rate Spread for a
Prime Rate Loan if the Loan is converted to a Prime Rate Loan pursuant to the provisions of Section 2.2.3 (c) or (f). 
  

 25 

 (b) Subject to the terms and conditions of this Section 2.2.3, the Loan shall be a
LIBOR Loan and Borrower shall pay interest on the Outstanding Principal Balance at LIBOR plus the Spread for the applicable Interest Period. Any change in the rate of interest hereunder due to a change in the Applicable Interest Rate shall become
effective as of the opening of business on the first day on which such change in the Applicable Interest Rate shall become effective. Each determination by Lender of the Applicable Interest Rate shall be conclusive and binding for all purposes,
absent manifest error. 
  
 (c) In the event that
Lender shall have determined (which determination shall be conclusive and binding upon Borrower absent manifest error) that by reason of circumstances affecting the interbank Eurodollar market, adequate and reasonable means do not exist for
ascertaining LIBOR, then Lender shall forthwith give notice by telephone of such determination, confirmed in writing, to Borrower at least one (1) day prior to the last day of the related Interest Period. If such notice is given, the related
outstanding LIBOR Loan shall be converted, on the last day of the then current Interest Period, to a Prime Rate Loan. 
  
 (d) If, pursuant to the terms of this Agreement, any portion of the Loan has been converted to a Prime Rate Loan and Lender shall
determine (which determination shall be conclusive and binding upon Borrower absent manifest error) that the event(s) or circumstance(s) which resulted in such conversion shall no longer be applicable, Lender shall give notice by telephone of such
determination, confirmed in writing, to Borrower at least one (1) day prior to the last day of the related Interest Period. If such notice is given, the related outstanding Prime Rate Loan shall be converted to a LIBOR Loan on the last day of the
then current Interest Period. 
  
 (e) With
respect to a LIBOR Loan, all payments made by Borrower hereunder shall be made free and clear of, and without reduction for or on account of, income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions, reserves or withholdings
imposed, levied, collected, withheld or assessed by any Governmental Authority, which are imposed, enacted or become effective after the date hereof (such non-excluded taxes being referred to collectively as “Foreign Taxes”),
excluding income and franchise taxes of the United States of America or any political subdivision or taxing authority thereof or therein (including Puerto Rico). If any Foreign Taxes are required to be withheld from any amounts payable to Lender
hereunder, the amounts so payable to Lender shall be increased to the extent necessary to yield to Lender (after payment of all Foreign Taxes) interest or any such other amounts payable hereunder at the rate or in the amounts specified hereunder.
Whenever any Foreign Tax is payable pursuant to applicable law by Borrower, as promptly as possible thereafter, Borrower shall send to Lender an original official receipt, if available, or certified copy thereof showing payment of such Foreign Tax.
Borrower hereby indemnifies Lender for any incremental taxes, interest or penalties that may become payable by Lender which may result from any failure by Borrower to pay any such Foreign Tax when due to the appropriate taxing authority or any
failure by Borrower to remit to Lender the required receipts or other required documentary evidence. 
  
 (f) If any requirement of law or any change therein or in the interpretation or application thereof, shall hereafter make it unlawful for
Lender to make or maintain a LIBOR Loan as contemplated hereunder (i) the obligation of Lender hereunder to make a LIBOR Loan or to convert a Prime Rate Loan to a LIBOR Loan shall be canceled forthwith, and (ii) any 

  

 26 

 
outstanding LIBOR Loan shall be converted automatically to a Prime Rate Loan on the next succeeding Payment Date or within such earlier period as required by
law. Borrower hereby agrees promptly to pay Lender, upon demand, any additional amounts necessary to compensate Lender for any costs incurred by Lender in making any conversion in accordance with this Agreement, including, without limitation, any
interest or fees payable by Lender to lenders of funds obtained by it in order to make or maintain the LIBOR Loan hereunder. Lender’s notice of such costs, as certified to Borrower, shall be conclusive absent manifest error. 
  
 (g) In the event that any change in any requirement of law
or in the interpretation or application thereof, or compliance by Lender with any request or directive (whether or not having the force of law) hereafter issued from any central bank or other Governmental Authority: 
  

	 	(i)	shall hereafter impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, or deposits or other liabilities in or
for the account of, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of Lender which is not otherwise included in the determination of LIBOR hereunder; 

  

	 	(ii)	shall hereafter have the effect of reducing the rate of return on Lender’s capital as a consequence of its obligations hereunder to a level below that which Lender could have
achieved but for such adoption, change or compliance (taking into consideration Lender’s policies with respect to capital adequacy) by any amount deemed by Lender to be material; or 

  

	 	(iii)	shall hereafter impose on Lender any other condition and the result of any of the foregoing is to increase the cost to Lender of making, renewing or maintaining loans or extensions
of credit or to reduce any amount receivable hereunder; 

  
 then, in
any such case, Borrower shall promptly pay Lender, upon demand, any additional amounts necessary to compensate Lender for such additional cost or reduced amount receivable which Lender deems to be material as determined by Lender. If Lender becomes
entitled to claim any additional amounts pursuant to this Section 2.2.3(g), Lender shall provide Borrower with not less than ninety (90) days notice specifying in reasonable detail the event by reason of which it has become so entitled and
the additional amount required to fully compensate Lender for such additional cost or reduced amount. A certificate as to any additional costs or amounts payable pursuant to the foregoing sentence submitted by Lender to Borrower shall be conclusive
in the absence of manifest error. This provision shall survive payment of the Note and the satisfaction of all other obligations of Borrower under this Agreement and the Loan Documents. 
  
 (h) Borrower agrees to indemnify Lender and to hold Lender harmless from any loss or expense which Lender
sustains or incurs as a consequence of (i) any default by Borrower resulting in a loss or expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain a LIBOR Loan hereunder, (ii) any prepayment

  

 27 

 
(whether voluntary or mandatory) of the LIBOR Loan on a day that is not a Payment Date unless Borrower did not give the prior notice of such prepayment
required pursuant to the terms of this Agreement, including, without limitation, such loss or expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain the LIBOR Loan hereunder, and (iii) the
conversion (if such conversion is caused by any act or omission of Borrower) of the Applicable Interest Rate from LIBOR plus the Spread to the Prime Rate plus the Prime Rate Spread with respect to any portion of the Outstanding Principal Balance
then bearing interest at LIBOR plus the Spread on a date other than the Payment Date immediately following the last day of an Interest Period, including, without limitation, such loss or expenses arising from interest or fees payable by Lender to
lenders of funds obtained by it in order to maintain a LIBOR Loan hereunder (the amounts referred to in clauses (i), (ii) and (iii) are herein referred to collectively as the “Breakage Costs”); provided, however,
Borrower shall not indemnify Lender from any loss or expense arising from Lender’s willful misconduct or gross negligence. This provision shall survive payment of the Note in full and the satisfaction of all other obligations of Borrower under
this Agreement and the other Loan Documents. 
  
 (i) Lender shall not be entitled to claim compensation pursuant to this Section 2.2.3 for any Foreign Taxes, increased cost or reduction in amounts received or receivable hereunder, or any reduced rate of return, which was incurred
or which accrued more than ninety (90) days before the date Lender notified Borrower of the change in law or other circumstance on which such claim of compensation is based and delivered to Borrower a written statement setting forth in reasonable
detail the basis for calculating the additional amounts owed to Lender under this Section 2.2.3, which statement shall be conclusive and binding upon all parties hereto absent manifest error. 
  
 2.2.4 Additional Costs. Lender will use reasonable
efforts (consistent with legal and regulatory restrictions) to maintain the availability of the LIBOR Loan and to avoid or reduce any increased or additional costs payable by Borrower under Section 2.2.3, including, if requested by Borrower,
a transfer or assignment of the Loan to a branch, office or Affiliate of Lender in another jurisdiction, or a redesignation of its lending office with respect to the Loan, in order to maintain the availability of the LIBOR Loan or to avoid or reduce
such increased or additional costs, provided that the transfer or assignment or redesignation (a) would not result in any additional costs, expenses or risk to Lender that are not reimbursed by Borrower and (b) would not be disadvantageous in
any other respect to Lender as determined by Lender in its sole discretion. 
  
 2.2.5 Default Rate. In the event that, and for so long as, any Event of Default shall have occurred and be continuing, the Outstanding Principal Balance and, to the extent permitted by law, all accrued and
unpaid interest in respect of the Loan and any other amounts due pursuant to the Loan Documents, shall accrue interest at the Default Rate, calculated from the date such payment was due without regard to any grace or cure periods contained herein.

  
 2.2.6 Usury Savings. This Agreement,
the Note and the other Loan Documents are subject to the express condition that at no time shall Borrower be obligated or required to pay interest on the principal balance of the Loan at a rate which could subject Lender to either civil or criminal
liability as a result of being in excess of the Maximum Legal Rate. If, by the terms of this Agreement or the other Loan Documents, Borrower is at any time required or obligated to 

  

 28 

 
pay interest on the principal balance due hereunder at a rate in excess of the Maximum Legal Rate, the Applicable Interest Rate or the Default Rate, as the
case may be, shall be deemed to be immediately reduced to the Maximum Legal Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed to have been payments in reduction of principal and not on account of the interest due
hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of the sums due under the Loan, shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the full stated
term of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed the Maximum Legal Rate of interest from time to time in effect and applicable to the Loan for so long as the Loan is outstanding.

  
 2.2.7 Interest Rate Cap Agreement.

  
 (a) On or before the earlier to occur of (y)
September 1, 2004 or (z) the date which is two (2) weeks prior to the printing of the preliminary prospectus in connection with a Securitization (which date shall be provided to Borrower at least five (5) Business Days in advance thereof), Borrower
shall enter into an Interest Rate Cap Agreement with a LIBOR strike price equal to the Strike Price. The Interest Rate Cap Agreement (i) shall be in a form and substance reasonably acceptable to Lender, (ii) shall be with an Acceptable Counterparty,
(iii) shall direct such Acceptable Counterparty to deposit directly into the Property Account any amounts due Borrower under such Interest Rate Cap Agreement so long as any portion of the Debt exists, provided, that, the Debt shall be
deemed to exist if the Property is transferred by judicial or non-judicial foreclosure or deed-in-lieu thereof, (iv) shall be for a period equal to the term of the Loan, and (v) shall have an initial notional amount equal to the principal balance of
the Loan. Borrower shall collaterally assign to Lender, pursuant to the Collateral Assignment of Interest Rate Cap Agreement, all of its right, title and interest to receive any and all payments under the Interest Rate Cap Agreement, and shall
deliver to Lender an executed counterpart of such Interest Rate Cap Agreement (which shall, by its terms, authorize the assignment to Lender and require that payments be deposited directly into the Property Account). 
  
 (b) Borrower shall comply with all of its obligations under
the terms and provisions of the Interest Rate Cap Agreement. All amounts paid by the Counterparty under the Interest Rate Cap Agreement to Borrower or Lender shall be deposited immediately into the Property Account. Borrower shall take all actions
reasonably requested by Lender to enforce Lender’s rights under the Interest Rate Cap Agreement in the event of a default by the Counterparty and shall not waive, amend or otherwise modify any of its rights thereunder. 
  
 (c) In the event of any downgrade below “A+” (or
its equivalent), withdrawal or qualification of the rating of the Counterparty by S&P or Moody’s, Borrower shall replace the Interest Rate Cap Agreement with a Replacement Interest Rate Cap Agreement not later than ten (10) Business Days
following receipt of notice from Lender of such downgrade, withdrawal or qualification. 
  
 (d) In the event that Borrower fails to purchase and deliver to Lender the Interest Rate Cap Agreement or fails to maintain the Interest
Rate Cap Agreement in accordance with the terms and provisions of this Agreement, Lender may purchase the Interest Rate Cap Agreement and the cost incurred by Lender in purchasing such Interest Rate Cap Agreement 

  

 29 

 
shall be paid by Borrower to Lender with interest thereon at the Default Rate from the date such cost was incurred by Lender until such cost is reimbursed by
Borrower to Lender. 
  
 (e) In connection with
the Interest Rate Cap Agreement, Borrower shall obtain and deliver to Lender an opinion from counsel (which counsel may be in-house counsel for the Counterparty) for the Counterparty (upon which Lender and its successors and assigns may rely) which
shall provide, in relevant part, that: 
  

	 	(i)	the Counterparty is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation and has the organizational power and authority to
execute and deliver, and to perform its obligations under, the Interest Rate Cap Agreement; 

  

	 	(ii)	the execution and delivery of the Interest Rate Cap Agreement by the Counterparty, and any other agreement which the Counterparty has executed and delivered pursuant thereto, and
the performance of its obligations thereunder have been and remain duly authorized by all necessary action and do not contravene any provision of its certificate of incorporation or by-laws (or equivalent organizational documents) or any law,
regulation or contractual restriction binding on or affecting it or its property; 

  

	 	(iii)	all consents, authorizations and approvals required for the execution and delivery by the Counterparty of the Interest Rate Cap Agreement, and any other agreement which the
Counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been obtained and remain in full force and effect, all conditions thereof have been duly complied with, and no other action by, and no
notice to or filing with any Governmental Authority or regulatory body is required for such execution, delivery or performance; and 

  

	 	(iv)	the Interest Rate Cap Agreement, and any other agreement which the Counterparty has executed and delivered pursuant thereto, has been duly executed and delivered by the Counterparty
and constitutes the legal, valid and binding obligation of the Counterparty, enforceable against the Counterparty in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally,
and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 

  
 Section 2.3 Loan Payment. 
  

2.3.1 Payments Generally. Borrower shall pay to Lender on each Payment Date the interest accrued on the Loan for the preceding
Interest Period (the “Monthly Interest Payment”). The first interest accrual period hereunder shall commence on and include the 

  

 30 

 
Closing Date and end on July 8, 2004. Each interest accrual period thereafter shall commence on the ninth (9th) day of each calendar month during the term of
the Loan and shall end on and include the eighth (8th) day of the next occurring calendar month. For purposes of making payments hereunder, but not for purposes of calculating interest accrual periods, if the day on which such payment is due is not
a Business Day, then amounts due on such date shall be due on the immediately preceding Business Day. With respect to payments of principal due on the Maturity Date, interest shall be payable at the Applicable Interest Rate or the Default Rate, as
the case may be, through and including the day immediately preceding such Maturity Date. All amounts due pursuant to this Agreement and the other Loan Documents shall be payable without setoff, counterclaim, defense or any other deduction
whatsoever. 
  
 2.3.2 Payment on Maturity
Date. Borrower shall pay to Lender on the Maturity Date the Outstanding Principal Balance, all accrued and unpaid interest and all other amounts due hereunder and under the Note, the Mortgage and the other Loan Documents. 
  
 2.3.3 Late Payment Charge. If any principal, interest
or any other sums due under the Loan Documents, excluding the payment of principal due on the Maturity Date, is not paid by Borrower by the date on which it is due, Borrower shall pay to Lender upon demand an amount equal to the lesser of (a) two
percent (2%) of such unpaid sum, and (b) the maximum amount permitted by applicable law in order to defray the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such
delinquent payment; provided, however, that with respect to two (2) delinquent payments during the term of the Loan, as the same may be extended, no such late charge shall be payable provided such payment is made within five (5) days after the due
date therefor and interest on such delinquent payments shall accrue at the Applicable Interest Rate calculated from the date such payment was due. Any such amount shall be secured by the Mortgage and the other Loan Documents to the extent permitted
by applicable law. 
  
 2.3.4 Method and Place
of Payment. Except as otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender not later than 1:00 P.M., New York City time, on the date when due and shall be made in lawful
money of the United States of America in immediately available funds at Lender’s office or as otherwise directed by Lender, and any funds received by Lender after such time shall, for all purposes hereof, be deemed to have been paid on the next
succeeding Business Day. Any prepayments required to be made hereunder or under the Cash Management Agreement shall be deemed to have been timely made for the purposes of this Section 2.3.4. 
  
 Section 2.4 Prepayments. 
  
 2.4.1 Voluntary Prepayments. (a) The Loan may be
prepaid in whole only (but not in part) on any Payment Date, provided, that, with respect to any such prepayment (i) the Borrower shall give Lender thirty (30) days’ prior written notice of the Borrower’s intention to prepay
the Loan in full, (ii) subject to the terms of Section 2.4.1(b) below, all outstanding Other Loans together with all Other Borrower Obligations shall simultaneously be repaid in full subject to and in accordance with the applicable Other
Borrower Loan Documents and (iii) Borrower pays Lender, in addition to the Outstanding Principal Balance, (A) all interest as required herein; and (B) all other Debt payable under this Agreement, the Note, and the other Loan Documents, 

  

 31 

 
including, but not limited to the Breakage Costs and all of Lender’s costs and expenses (including reasonable attorneys’ fees and disbursements)
incurred by Lender in connection with such prepayment. Borrower shall have the right to withdraw any prepayment notice at any time prior to such prepayment provided that Borrower shall pay to Lender all of Lender’s reasonable costs and expenses
incurred in connection with the receipt of such notices. 
  
 (b) Notwithstanding the terms of clause (ii) of Section 2.4.1(a) above, the Loan may be prepaid in whole only (but not in part) if the Property is sold in a bona fide arms-length, all-cash sale to a
Person which is not a Related Party, provided, that: 
  

	 	(i)	the Borrower complies with the terms of Section 2.4.1(a) above (excluding clause (ii) thereof) in respect of such prepayment; 

  

	 	(ii)	the amount of such prepayment shall equal the Adjusted Release Amount; 

  

	 	(iii)	no Release Default or Event of Default shall have occurred and be continuing hereunder or under any other Loan Document; 

  

	 	(iv)	after giving effect to such release (including the amount prepaid in Section 2.4.1(a) above), the Aggregate Debt Service Coverage Ratio of the remaining Other Properties
shall equal or exceed the greater of (i) the Aggregate Debt Service Coverage Ratio for the twelve (12) full calendar months immediately preceding the Closing Date, or (ii) the Aggregate Debt Service Coverage Ratio for the twelve (12) full calendar
months immediately preceding the release of the Property for which financial statements are available; 

  

	 	(v)	In the event Borrower is the owner of an Other Property, the Property shall be conveyed to a Person other than Borrower; 

  

	 	(vi)	The Adjusted Release Amount paid to Lender in connection with any such release shall be applied (i) first, to reduce the Debt to zero, and (ii) second, pro rata to the Other Loans,
immediately following such release. In connection with the release of the Mortgage and Second Mortgage as permitted by this Section 2.5, Borrower shall submit to Lender, not less than ten (10) days prior to the date on which Borrower intends
to pay the Loan in full, a release of Lien (and related Loan Documents), for the Property for execution by Lender. Such release shall be in a form appropriate in the jurisdiction in which the Property is located and that would be satisfactory to a
prudent lender; and 

  

	 	(vii)	Borrower shall have delivered to Lender an Officer’s Certificate in form reasonably acceptable to Lender certifying that no Release Default or Event of Default has occurred and
is continuing hereunder, under the Other Loan Documents or under the Other Borrower Loan Documents. 

  

 32 

 In the event any sums payable pursuant to Section 2.4 of the Other Loan Agreements are applied to
reduce the Outstanding Principal Balance of this Loan, no Prepayment Premium shall be payable in connection therewith. 
  
 2.4.2 Mandatory Prepayments. On the next occurring Payment Date following the date on which Lender actually receives any Net
Proceeds, if Lender is not obligated to make such Net Proceeds available to Borrower for Restoration, Borrower shall prepay, or authorize Lender to apply Net Proceeds as a prepayment of, the Outstanding Principal Balance in an amount equal to one
hundred percent (100%) of such Net Proceeds. So long as no Event of Default has occurred and is continuing, no Prepayment Premium shall be due in connection with any prepayment made pursuant to this Section 2.4.2 (such fee being expressly
waived). 
  
 2.4.3 Prepayments After
Default. If after the occurrence and during the continuance of an Event of Default, payment of all or any part of the Debt is tendered by Borrower or otherwise recovered by Lender (including through application of any Reserve Funds), such tender
or recovery shall be deemed (a) to have been made on the next occurring Payment Date together with the Monthly Interest Payment, and (b) to be a voluntary prepayment by Borrower and Borrower shall pay, in addition to the Debt, an amount equal to the
greater of (i) five percent (5%) of the Outstanding Principal Balance or the portion thereof being prepaid or satisfied, and (ii) the Prepayment Premium, if any. 
  
 Section 2.5 Release of Property. (a) Except as set forth in this Section 2.5, no repayment or prepayment of
all or any portion of the Loan shall cause, give rise to a right to require, or otherwise result in, the release of the Liens of the Mortgage or the Second Mortgage. 
  
 (b) Lender shall promptly, upon the written request and at the sole cost and expense of Borrower, upon
payment in full of all of the Debt in accordance with the terms and provisions of the Note, this Agreement and the other Loan Documents and subject to and upon compliance with the terms of Section 2.4.1(b) hereof, release the Lien of the
Mortgage and the Second Mortgage on the Property. 
  
 (c) In connection with the release of the Mortgage and the Second Mortgage as permitted by this Section 2.5, Borrower shall submit to Lender, not less than ten (10) days prior to the Payment Date on which Borrower intends to pay the
Loan in full, releases of Lien (and related Loan Documents), for the Property for execution by Lender. Such releases shall be in a form appropriate in the jurisdiction in which the Property is located and that would be satisfactory to a prudent
lender. 
  
 Section 2.6 Cash Management. 
  
 2.6.1 Property Account. 
  
 (a) Borrower shall establish and maintain a segregated
Eligible Account (the “Property Account”) with the Property Account Bank maintained under Borrower’s control and direction during any period other than while a Sweep Event continues. Borrower (i) hereby grants to Lender a first
priority security interest in the Property Account and all deposits at any time contained therein and the proceeds thereof, and (ii) following and during any Sweep Event will take all actions necessary to maintain in favor of Lender a perfected
first priority security 

  

 33 

 
interest in the Property Account, including, without limitation, authorizing the filing of UCC-1 Financing Statements and continuations thereof. Borrower
will not in any way alter or modify the Property Account and will notify Lender of the account number thereof. Other than during a Sweep Event, Borrower shall have the sole right to make withdrawals from the Property Account and all reasonable costs
and expenses for establishing and maintaining the Property Account shall be paid by Borrower. Upon the occurrence and continuation of a Sweep Event, Lender shall have sole dominion and control over the Property Account and Borrower may not withdraw
funds from the Property Account. 
  
 (b) Borrower
shall, or shall cause Manager to, deposit all amounts received by Borrower or Manager constituting Rents into the Property Account within one (1) Business Day after receipt thereof, provided, however, Borrower may retain, for its business operations
at all times a sum not to exceed Thirty-Five Thousand and 00/100 ($35,000.00) in the aggregate in the Operating Account (as defined in the Cash Management Agreement) and at the Property. In addition, on or before the Closing Date, Borrower shall, or
shall cause Manager to, deliver irrevocable written instructions (each a “Payment Direction Letter”) to each of the credit card companies or credit card clearing banks with which Borrower or Manager has entered into merchant’s
agreements and to each account debtor of Borrower to deliver all Rents payable with respect to the Property directly to the Property Account. 
  
 (c) During any Sweep Event, the Property Account shall be maintained under Lender’s sole control, dominion and direction. Pursuant to
the terms of the Property Account Agreement, Property Account Bank shall transfer to the Cash Management Account, in immediately available funds by federal wire all amounts on deposit in the Property Account each Business Day during a period that a
Sweep Event exists. 
  
 (d) Upon request of
Lender, Borrower shall deliver to Lender such evidence as Lender may reasonably request to evidence that Borrower is complying with the provisions of Section 2.6.1. Without the prior written consent of Lender (not to be unreasonably withheld
or delayed), neither Borrower nor its agents (including, without limitation, Manager) or Affiliates shall (i) terminate, amend, revoke or modify any Payment Direction Letter in any manner or (ii) direct or cause any credit card company, credit card
clearing bank or account debtor to pay any amount in any manner other than as provided specifically in the related Payment Direction Letter. 
  
 (e) There are no accounts, other than the Property Account, maintained by Borrower or Manager or any other Person into which Rents from
the Property are initially deposited. So long as the Debt shall be outstanding, Borrower shall not and shall not permit any Person (other than Lender) to open any other such account for the initial deposit of Rents from the Property prior to the
deposit of such Rents in the Property Account. 
  
 (f) Borrower shall cause all payments made under the Interest Rate Cap Agreement or any Replacement Interest Rate Cap Agreement with respect to the Loan to be deposited into the Property Account. 
  
 2.6.2 Intentionally Omitted. 
  

 34 

 2.6.3 Cash Management Account. 
  
 (a) Borrower shall cooperate with Lender and Servicer in
connection with the establishment and maintenance of a segregated Eligible Account (the “Cash Management Account”) to be held by Servicer in trust for the benefit of Lender, which Cash Management Account shall be under the sole
dominion and control of Lender. The Cash Management Account shall be entitled “Column Financial, Inc., as Lender, pursuant to Loan Agreement dated as of June 21, 2004—Cash Management Account.” Borrower hereby (i) grants to Lender a
first priority security interest in the Cash Management Account and all deposits at any time contained therein and the proceeds thereof, and (ii) will take all actions necessary to maintain in favor of Lender a perfected first priority security
interest in the Cash Management Account, including, without limitation, authorizing the filing of UCC-1 Financing Statements and continuations thereof. Borrower will not in any way alter or modify the Cash Management Account and will notify Lender
of the account number thereof. Lender and Servicer shall have the sole right to make withdrawals from the Cash Management Account and all costs and expenses for establishing and maintaining the Cash Management Account shall be paid by Borrower.

  
 (b) After the occurrence and during the
continuance of a Sweep Event, on each Payment Date (or, if such Payment Date is not a Business Day, on the immediately preceding Business Day) all funds on deposit in the Cash Management Account shall be applied by Lender to the payment of the
following items in the order indicated: 
  

	 	(i)	First, payments in respect of the Tax and Insurance Escrow Funds in accordance with the terms and conditions of Section 7.2 hereof; 

  

	 	(ii)	Second, payment of the Monthly Interest Payment computed at the Applicable Interest Rate; 

  

	 	(iii)	Third, payments to the FF&E Reserve Funds in accordance with the terms and conditions of Section 7.3 hereof; 

  

	 	(iv)	Fourth, payment to Lender of any other amounts then due and payable under the Loan Documents; 

  

	 	(v)	Fifth, to the extent that, in respect of any Other Loan, there is, or Lender reasonably determines that there will be, a shortfall (each an “Other Loan Shortfall”)
during the relevant calendar month in the items referred to (x) in clauses (i)-(vi) of Section 2.6.3(b) of the applicable Other Loan Agreements, funds sufficient to pay such Other Loan Shortfall; 

  

	 	(vi)	Sixth, funds sufficient to pay Operating Expenses for the next calendar month pursuant to the Approved Annual Budget, other than expenses paid, or to be paid to, an Affiliated
Manager; 

  

	 	(vii)	Seventh, funds sufficient to pay Extraordinary Expenses approved by Lender and which are then due and payable, if any; 

  

 35 

	 	(viii)	Eighth, funds sufficient to pay Operating Expenses paid, or to be paid to, an Affiliated Manager for the next calendar month pursuant to the Approved Annual Budget; and

  

	 	(ix)	Lastly, and so long as an Event of Default does not exist, payment of any excess amounts (“Excess Cash Flow”) to Borrower. 

  
 (c) The insufficiency of funds on deposit in the Cash
Management Account shall not relieve Borrower of the obligation to make any payments, as and when due pursuant to this Agreement and the other Loan Documents, and such obligations shall be separate and independent, and not conditioned on any event
or circumstance whatsoever. 
  
 (d) All funds on
deposit in the Cash Management Account following the occurrence of an Event of Default may be applied by Lender in such order and priority as Lender shall determine in its sole discretion. 
  
 2.6.4 Payments Received Under the Cash Management
Agreement. Notwithstanding anything to the contrary contained in this Agreement and the other Loan Documents, and provided no Event of Default has occurred and is continuing, Borrower’s obligations with respect to the monthly payment
of Debt Service and amounts due for the Tax and Insurance Escrow Funds, FF&E Reserve Funds, Required Repair Funds and any other payment reserves established pursuant to this Agreement or any other Loan Document shall be deemed satisfied to the
extent sufficient amounts are deposited in the Cash Management Account to satisfy such obligations on the dates each such payment is required, regardless of whether any of such amounts are so applied by Lender. 
  
 2.6.5 Application After Event of Default.
Notwithstanding anything to the contrary contained in this Section 2.6, upon the occurrence of an Event of Default, Lender, at its option, may withdraw the Reserve Funds and any other funds of Borrower then in the possession of Lender,
Servicer or Property Account Bank and apply such funds to the items for which the Reserve Funds were established or to the payment of the Obligations and the Other Borrower Obligations in such order, proportion and priority as Lender may determine
in its sole discretion. Lender’s right to withdraw and apply any of the foregoing funds shall be in addition to all other rights and remedies provided to Lender under the Loan Documents. 
  
 2.6.6 Quarterly Net Cash Flow Tests. In order to
ascertain whether or not a Net Cash Flow Failure has occurred or has terminated, Lender shall determine the Net Cash Flow as of the last day of each calendar quarter throughout the term of the Loan (each, a “Quarterly Net Cash Flow
Test”), beginning September, 2004, each of which Quarterly Net Cash Flow Tests and the determinations made with respect thereto shall be based on the information delivered in accordance with Section 5.1.11 hereof, together with any
other evidence which Lender may reasonably require to substantiate or explain the calculation of Net Cash Flow. Notwithstanding the foregoing, if the information required under Section 5.1.11 hereof is not delivered, the Net Cash Flow shall
be determined in Lender’s sole discretion. 
  

 36 

 Section 2.7 Extension Options 
  
 2.7.1 First Extension Option. Borrower shall have the right to extend the Initial Maturity Date to
July 9, 2007 (the period commencing on the first (1st) day following the Initial Maturity Date and ending on July 9, 2007 being referred to herein as the “First Extension Term”), provided, that: (a) Borrower shall have
given Lender its written notice of such extension (an “Extension Notice”) not less than two (2) months nor more than six (6) months prior to the Initial Maturity Date; (b) the Interest Rate Cap shall be in effect as of the date of
the commencement of the First Extension Term (the “First Extension Commencement Date”) for the term of the Loan as extended and assigned to Lender; (c) no Event of Default shall have occurred and be continuing at the time of the
delivery of the Extension Notice with respect to the First Extension Term or on the First Extension Commencement Date; and (d) Borrower shall have delivered to Lender an Officer’s Certificate in form reasonably acceptable to Lender certifying
whether or not an Event of Default has occurred and is continuing, and if so, describing such Event of Default. 
  
 2.7.2 Second Extension Option. In the event that Borrower exercises the extension option for the First Extension Term, Borrower
shall have the right to further extend the Maturity Date to July 9, 2008 (the period commencing on the first (1st) day following the First Extension Term and ending on July 9, 2008 being referred to herein as the “Second Extension
Term”), provided, that: (a) Borrower shall have given Lender an Extension Notice not less than two (2) months nor more than six (6) months prior to the last day of the First Extension Term; (b) the Interest Rate Cap shall be
in effect as of the date of the Commencement of the Second Extension Term (the “Second Extension Commencement Date”) for the term of the Loan as extended and assigned to Lender; (c) no Event of Default shall have occurred and
be continuing at the time of the delivery of the Extension Notice with respect to the Second Extension Term or on the Second Extension Commencement Date; and (d) Borrower shall have delivered to Lender an Officer’s Certificate in form
reasonably acceptable to Lender certifying whether or not an Event of Default has occurred and is continuing, and if so, describing such Event of Default. 
  
 2.7.3 Third Extension Option. In the event that Borrower exercises the extension option for the Second Extension Term, Borrower
shall have the right to further extend the Maturity Date to July 9, 2009 (the period commencing on the first (1st) day following the Second Extension Term and ending on July 9, 2009 being referred to herein as the “Third Extension
Term”), provided, that: (a) Borrower shall have given Lender an Extension Notice not less than two (2) months nor more than six (6) months prior to the last day of the Second Extension Term; (b) the Interest Rate Cap shall be
in effect as of the date of the Commencement of the Third Extension Term (the “Third Extension Commencement Date”) for the term of the Loan as extended and assigned to Lender; (c) no Event of Default shall have occurred and
be continuing at the time of the delivery of the Extension Notice with respect to the Third Extension Term or on the Third Extension Commencement Date; and (d) Borrower shall have delivered to Lender an Officer’s Certificate in form reasonably
acceptable to Lender certifying whether or not an Event of Default has occurred and is continuing, and if so, describing such Event of Default. 
  
 Section 2.8 Substitution. Notwithstanding anything to the contrary set forth in Section 2.4 hereof, Borrower may substitute (each a
“Substitution”) a property (the “Substitute Property”) for the Property upon and subject to the following terms and conditions: 
  
 (a) There shall be no more than one (1) Substitution in the aggregate with respect to the Property and the
other Properties effected during the term of the Loan. 
  

 37 

 (b) Lender shall have received at least sixty (60) days prior written notice requesting
the Substitution and identifying the Substitute Property. 
  
 (c) The Substitute Property shall be a fee parcel and used and operated as a hotel of like kind and quality as the hotel operated on the Property as of the Closing Date and shall have been completed lien-free and paid
for in full in a good and workmanlike manner and in compliance, in all material respects, with all applicable Legal Requirements. 
  
 (d) On the Substitution Date, the Loan (in such capacity the “Replaced Loan”) secured by the Mortgage and Second Mortgage
encumbering the Substitute Property shall be repaid in full and, subject to the terms hereof, Lender shall make a new Loan (simultaneously with the full repayment of the Replaced Loan) in an amount equal to the then principal balance of the Replaced
Loan (the “Substitution Loan”) to the owner (which shall qualify as a Qualified Borrower) of the Substitute Property (the “Substitute Borrower”). Notwithstanding the foregoing, at Lender’s election, the
foregoing may be affected by the Substitute Borrower assuming the Replaced Loan (in which event the Replaced Loan shall constitute a Substitution Loan) and the contemporaneous release of the applicable Borrower (the “Replaced
Borrower”) from its obligations in respect of the Replaced Loan. The Substitute Borrower shall execute and deliver a Joinder Acknowledgment and Substitution Loan shall constitute a Loan hereunder. 
  
 (e) (i) The appraised fair market value of the Substitute
Property shall be equal to or greater than the original appraised value of the Property as set forth in the appraisal delivered to Lender in connection with the closing of the Loan. The fair market value of the Property and Substitute Property shall
be determined by a firm of appraisers selected by Borrower and approved by Lender (which approval shall not be unreasonably withheld, delayed or conditioned) and based on an appraisal, dated not more than ninety (90) days prior to the Substitution
Date reasonably satisfactory to Lender. All costs of such appraisals shall be paid by Borrower on or prior to the Substitution Date. 
  

	 	(ii)	The actual Net Cash Flow relating to the Substitute Property (based upon the trailing twelve (12) month financial results or such shorter period, as Lender reasonably deems
appropriate, if the Substitute Property has been open for business for less than one year) shall equal or exceed the actual Net Cash Flow relating (based upon the trailing twelve (12) month financial results or such shorter period, as Lender
reasonably deems appropriate, if the Property has been open for business for less than one year) to the Property. 

  
 (f) Lender shall have received from Substitute Borrower and such other Persons as Lender deems reasonably appropriate a Mortgage, a Second
Mortgage, a Loan Agreement, a Note, an Equity Pledge Agreement, all other Loan Documents and Junior Lender Security Documents executed by Borrower, Guarantor and/or any other Person (all of which 

  

 38 

 
shall be substantially the form of the Loan Documents executed in respect of the Loan with such changes thereto as Lender reasonably deems appropriate to
reflect the circumstances of the Substitution) (collectively, the “Substitute Loan Documents”). 
  
 (g) The Substitute Loan Documents, financing statements, and other instruments required to perfect the liens in the collateral
contemplated thereby required by Lender shall have been recorded, registered and filed (as applicable) in such manner as may be required by law to create a valid, perfected lien and security interest with respect to the Substitute Property and the
personal property related thereto. 
  
 (h) The
liens created by the Substitute Loan Documents shall be first liens and prior security interests on the Substitute Property and the personal property related thereto (other than the Second Mortgage), subject only to such exceptions as Lender shall
approve in its sole discretion. 
  
 (i) Upon the
closing of the Substitute Property (the “Substitution Date”), the Borrower shall have good and marketable title to the Substitute Property, and good and valid title to any personal property located thereon or used in connection
therewith, in each case satisfactory to the Lender. 
  
 (j) Lender shall, at Borrower’s sole cost and expense, receive and approve all Additional Due Diligence Materials. 
  
 (k) Lender shall have received (x) a confirmation of all Loan Documents executed by Guarantor and a consent to such Substitution by
Guarantor, (y) a confirmation of all guaranties executed by the Other Borrowers and all pledges executed by the pledgors thereof and a consent to such Substitution by the Other Borrowers and pledgors, and (z) such other instruments and agreements
and such certificates and opinions of counsel, in form and substance reasonably satisfactory to Lender in connection with such Substitution as it may reasonably request. 
  
 (l) The Substitute Property shall be located within the continental United States. 
  
 (m) No Default or Event of Default shall have occurred and
be continuing hereunder, under any other Loan Document or under the Other Borrower Loan Documents on the Substitution Date, and Borrower shall have delivered to Lender an Officer’s Certificate in form reasonably acceptable to Lender certifying
to same. 
  
 (n) Borrower shall pay all
reasonable out-of-pocket costs and expenses incurred in connection with any such Substitution and the reasonable out-of-pocket fees and expenses incurred by Lender and Servicer in connection therewith. Without limiting the generality of the
foregoing, Borrower shall, in connection with, and as a condition to, a Substitution, pay the reasonable fees and expenses of Lender’s attorneys, the reasonable fees and expenses of Lender’s engineers, appraisers, construction consultants,
insurance consultants and other due diligence consultants and contractors, recording charges, title insurance charges, and stamp and/or mortgage or similar taxes, transfer taxes. 
  

 39 

 (o) Lender shall have received such assurances and confirmations from the Rating Agencies
that the Substitution shall not result in a downgrading, withdrawal or qualification of any rating assigned or the preliminary or indicative rating to be assigned to any securities issued in connection with any Securitization. 
  
 (p) Lender shall be satisfied that the Substitution shall
not constitute a preference or fraudulent conveyance or that the Substitution is structured in such a manner as to avoid said risks. 
  
 (q) A Net Cash Flow Failure shall not be in effect on the Substitution Date. 
  
 (r) On or before the Substitution Date, all conditions
precedent with respect to the Replaced Loan shall be satisfied with respect to the Substitute Loan, including, without limitation, delivery of Title Policies with respect to the Substitute Property. 
  
 ARTICLE 3 
  
 CONDITIONS PRECEDENT 
  

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

  

 40 

 
the Closing Date, with reinsurance and direct access agreements acceptable to Lender. Such Title Insurance Policies shall (i) provide coverage in amounts
satisfactory to Lender, (ii) insure Lender that the Mortgage and the Second Mortgage, as applicable, creates a valid lien on the Property encumbered thereby of the requisite priority, free and clear of all exceptions from coverage other than
Permitted Encumbrances and standard exceptions and exclusions from coverage (as modified by the terms of any endorsements), (iii) contain such endorsements and affirmative coverages as Lender may reasonably request, (iv) name Lender and its
successors and assigns as the insured. The Title Insurance Policies shall be assignable, to the extent permitted under applicable state law. Lender also shall have received evidence that all premiums in respect of such Title Insurance Policies have
been paid, and (v) with respect to the Second Mortgage, tie-in and first loss endorsements to the extent available in the State where the Property is located. 
  

(c) Survey. Lender shall have received a current Survey, certified to the title company and Lender and their successors and
assigns, in form and content satisfactory to Lender and prepared by a professional and properly licensed land surveyor satisfactory to Lender in accordance with the Accuracy Standards for ALTA/ACSM Land Title Surveys as adopted by ALTA, American
Congress on Surveying & Mapping and National Society of Professional Surveyors in 1999. The Survey shall reflect the same legal description contained in the Title Insurance Policy and shall include, among other things, a metes and bounds
description of the real property comprising part of the Property reasonably satisfactory to Lender. The surveyor’s seal shall be affixed to the Survey and the surveyor shall provide a certification for the Survey in form and substance
acceptable to Lender. 
  
 (d) Insurance.
Lender shall have received valid certificates of insurance for the Policies required hereunder, satisfactory to Lender in its sole discretion, and evidence of the payment of all Insurance Premiums payable for the existing policy period. 

 
 (e) Environmental Reports. Lender shall have
received a Phase I environmental report (and, if recommended by the Phase I environmental report, a Phase II environmental report) in respect of the Property, satisfactory in form and substance to Lender. 
  
 (f) Zoning. Lender shall have received, at
Lender’s option, either (i) (A) letters or other evidence with respect to the Property from the appropriate municipal authorities (or other Persons) concerning applicable zoning and building laws, or (B) an ALTA 3.1 zoning endorsement for the
Title Insurance Policy, or (ii) a zoning opinion letter, in each case in substance reasonably satisfactory to Lender. 
  
 (g) Encumbrances. Borrower shall have taken or caused to be taken such actions in such a manner so that Lender has a valid and
perfected first priority Lien as of the Closing Date with respect to the Mortgage, subject only to applicable Permitted Encumbrances and such other Liens as are permitted pursuant to the Loan Documents, and Lender shall have received satisfactory
evidence thereof. 
  
 3.1.4 Related
Documents. Each additional document not specifically referenced herein, but relating to the transactions contemplated herein, shall be in form and substance 

  

 41 

 
reasonably satisfactory to Lender, and shall have been duly authorized, executed and delivered by all parties thereto and Lender shall have received and
approved certified copies thereof. 
  
 3.1.5
Delivery of Organizational Documents. (a) Borrower shall deliver or cause to be delivered to Lender copies certified by Borrower of all organizational documentation related to Borrower and/or its formation, structure, existence, good standing
and/or qualification to do business, as Lender may request in its sole discretion, including, without limitation, good standing certificates, qualifications to do business in the appropriate jurisdictions, resolutions authorizing the entering into
of the Loan and incumbency certificates as may be requested by Lender. 
  
 (b) Borrower shall deliver or cause to be delivered to Lender copies certified by Borrower of all organizational documentation related to Principal, Guarantor, and other members and/or partners of Borrower, and/or the
formation, structure, existence, good standing and/or qualification to do business of any of the foregoing, as Lender may request in its sole discretion, including, without limitation, good standing certificates, qualifications to do business in the
appropriate jurisdictions, authorizing resolutions and incumbency certificates as may be requested by Lender. 
  
 3.1.6 Opinions of Borrower’s Counsel. Lender shall have received opinions from Borrower’s counsel with respect to
non-consolidation and the due execution, authority, enforceability of the Loan Documents and such other matters as Lender may require, all such opinions in form, scope and substance satisfactory to Lender and Lender’s counsel in their sole
reasonable discretion. 
  
 3.1.7 Intentionally
Omitted. 
  
 3.1.8 Basic Carrying
Costs. Borrower shall have paid all Basic Carrying Costs relating to the Property which are in arrears, including without limitation, (a) accrued but unpaid Insurance Premiums, (b) currently due Taxes (including any in arrears) and (c) currently
due Other Charges, which amounts shall be funded with proceeds of the Loan. 
  
 3.1.9 Completion of Proceedings. All corporate and other proceedings taken or to be taken in connection with the transactions contemplated by this Agreement and the other Loan Documents and all documents
incidental thereto shall be satisfactory in form and substance to Lender, and Lender shall have received all such counterpart originals or certified copies of such documents as Lender may reasonably request. 
  
 3.1.10 Payments. All payments, deposits or escrows
required to be made or established by Borrower under this Agreement, the Note and the other Loan Documents on or before the Closing Date shall have been paid. 
  

3.1.11 Intentionally Omitted. 
  
 3.1.12 Transaction Costs. Borrower shall have paid or reimbursed Lender for all title insurance premiums, recording and filing
fees, costs of environmental reports, Physical Conditions Reports, appraisals and other reports, the fees and costs of Lender’s counsel and all 

  

 42 

 
other third party out-of-pocket expenses reasonably incurred in connection with the origination of the Loan. 
  
 3.1.13 Leases and Rent Roll. Lender shall have
received copies of all Leases and certified copies of any Leases as requested by Lender. Lender shall have received a current certified rent roll of the Property, reasonably satisfactory in form and substance to Lender. 
  
 3.1.14 Tax Lot. Lender shall have received evidence
that the Property constitutes one (1) or more separate tax lots, which evidence shall be satisfactory in form and substance to Lender. 
  
 3.1.15 Physical Conditions Report. Lender shall have received a Physical Conditions Report, which report shall be satisfactory in
form and substance to Lender. 
  
 3.1.16
Management Agreement. Lender shall have received a copy of the Management Agreement, which shall be reasonably satisfactory in form and substance to Lender. 
  
 3.1.17 Appraisal. Lender shall have received an appraisal of the Property, which shall be
satisfactory in form and substance to Lender. 
  
 3.1.18 Financial Statements. Lender shall have received a balance sheet with respect to the Property for the two (2) most recent Fiscal Years (audited, if available), each in form and substance satisfactory to Lender. 
  
 3.1.19 Further Documents. Lender or its counsel shall
have received such other and further approvals, opinions, documents and information as Lender or its counsel may have reasonably requested including the Loan Documents in form and substance satisfactory to Lender and its counsel. 
  
 3.1.20 Other Loans. All conditions precedent to the
closing of each of the Other Loans shall have been satisfied, as determined by Lender in its sole discretion, and each Other Loan shall have closed or shall close simultaneously with the closing of the Loan. 
  
 ARTICLE 4 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Section 4.1 Borrower Representations. Borrower represents and warrants as of the date hereof and as of the Closing
Date that: 
  
 4.1.1 Organization.
Borrower has been duly organized and is validly existing and in good standing with requisite power and authority to own its properties and to transact the businesses in which it is now engaged. Borrower is duly qualified to do business and is in
good standing in each jurisdiction where it is required to be so qualified in connection with its properties, businesses and operations. Borrower possesses all rights, licenses, permits and authorizations, governmental or otherwise, necessary to
entitle it to own its properties and to transact the businesses in which it is now engaged, and the sole business of Borrower is the 

  

 43 

 
ownership, management and operation of the Property. The ownership interests of Borrower are as set forth on the organizational chart attached hereto as
Schedule III. 
  
 4.1.2
Proceedings. Borrower has taken all necessary action to authorize the execution, delivery and performance of this Agreement and the other Loan Documents. This Agreement and the other Loan Documents have been duly executed and delivered by or
on behalf of Borrower and constitute the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, subject only to applicable bankruptcy, insolvency and similar laws affecting rights of
creditors generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 
  
 4.1.3 No Conflicts. The execution, delivery and performance of this Agreement and the other Loan
Documents by any Significant Party, as applicable, will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance (other
than pursuant to the Loan Documents) upon any of the property or assets of Borrower pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, partnership agreement, management agreement or other agreement or instrument to
which Borrower is a party or by which any of Borrower’s property or assets is subject, nor will such action result in any violation of the provisions of any statute or any order, rule or regulation of any Governmental Authority having
jurisdiction over Borrower or any of Borrower’s properties or assets, and any consent, approval, authorization, order, registration or qualification of or with any such Governmental Authority required for the execution, delivery and performance
by any Significant Party, as applicable, of this Agreement or any other Loan Documents has been obtained and is in full force and effect. 
  
 4.1.4 Litigation. There are no actions, suits or proceedings at law or in equity by or before any Governmental Authority or other
agency now pending or, to Borrower’s knowledge, threatened against or affecting any Significant Party or the Property, which actions, suits or proceedings, if determined against such Significant Party or the Property, are reasonably likely to
have a Material Adverse Effect. 
  
 4.1.5
Agreements. Borrower is not a party to any agreement or instrument or subject to any restriction which might materially and adversely affect Borrower or the Property, or Borrower’s business, properties or assets, operations or condition,
financial or otherwise. Borrower is not in default in any material respect in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument to which it is a party or by which
Borrower or the Property are bound. Borrower has no material financial obligation under any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which Borrower is a party or by which Borrower or the Property is
otherwise bound, other than (a) any obligations incurred in the ordinary course of the operation of the Property as permitted pursuant to clause (s) of the definition of “Special Purpose Entity” set forth in Section 1.1 hereof, (b)
the obligations under the Loan Documents. 
  
 4.1.6 Title. (a) Borrower has good, marketable and insurable fee title to the Property, free and clear of all Liens whatsoever except the Permitted Encumbrances, such other Liens as are permitted pursuant to the Loan Documents and
the Liens created by the Loan 

  

 44 

 
Documents. The Permitted Encumbrances in the aggregate do not materially and adversely affect the value, operation or use of the Property (as currently used)
or Borrower’s ability to repay the Loan. The Mortgage and the Assignment of Leases, when properly recorded in the appropriate records, together with any Uniform Commercial Code financing statements required to be filed in connection therewith,
will create (a) a valid, perfected first priority lien on the Property, subject only to Permitted Encumbrances and the Liens created by the Loan Documents, and (b) perfected security interests in and to, and perfected collateral assignments of, all
personalty (including the Leases), all in accordance with the terms thereof, in each case subject only to any applicable Permitted Encumbrances, such other Liens as are permitted pursuant to the Loan Documents and the Liens created by the Loan
Documents. There are no claims for payment for work, labor or materials affecting the Property which are or may become a Lien prior to, or of equal priority with, the Liens created by the Loan Documents. 
  
 (b) The Second Mortgage, when properly recorded in the
appropriate public records, together with any Uniform Commercial Code financing statements required to be filed in connection therewith, will create (i) a valid, perfected second priority Lien on the Property, subject only to Permitted Encumbrances
and the Lien of the Mortgage and (ii) perfected security interests in and to, and perfected collateral assignments of, all Personal Property (including the Leases), all in accordance with the terms thereof, in each case subject only to the Mortgage
and any applicable Permitted Encumbrances to the extent that perfection occurs through the recording of a Mortgage or the filing of a financing statement. 
  
 4.1.7 Solvency. Borrower has (a) not entered into the transaction contemplated by this Agreement or executed the Note, this
Agreement or any other Loan Documents with the actual intent to hinder, delay or defraud any creditor and (b) received reasonably equivalent value in exchange for its obligations under such Loan Documents. After giving effect to the Loan, the fair
saleable value of Borrower’s assets exceeds and will, immediately following the making of the Loan, exceed Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed and contingent liabilities. The
fair saleable value of Borrower’s assets is and will, immediately following the making of the Loan, be greater than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on its debts as such debts
become absolute and matured. Borrower’s assets do not and, immediately following the making of the Loan will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Borrower does not
intend to, and does not believe that it will, incur debts and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such debts and liabilities as they mature (taking into account the timing and amounts of
cash to be received by Borrower and the amounts to be payable on or in respect of the obligations of Borrower). No petition in bankruptcy has been filed against Borrower or any of its constituent Persons, and neither Borrower nor any of its
constituent Persons has ever made an assignment for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. Neither Borrower nor any of its constituent Persons are contemplating either the filing of a petition
by it under any state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of Borrower’s assets or properties, and Borrower has no knowledge of any Person contemplating the filing of any such petition against it
or any of its constituent Persons. 
  

 45 

 4.1.8 Full and Accurate Disclosure. No statement of fact made by Borrower in this
Agreement or in any of the other Loan Documents contains any untrue statement of a material fact or omits to state any material fact necessary to make statements contained herein or therein not misleading. There is no material fact presently known
to Borrower which has not been disclosed to Lender which adversely affects, nor as far as Borrower can foresee, might adversely affect, the Property or the business, operations or condition (financial or otherwise) of Borrower. 
  
 4.1.9 No Plan Assets. Borrower is not an
“employee benefit plan,” as defined in Section 3(3) of ERISA, subject to Title I of ERISA, and none of the assets of Borrower constitutes or will constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R.
Section 2510.3-101. In addition, (a) Borrower is not a “governmental plan” within the meaning of Section 3(32) of ERISA, and (b) transactions by or with Borrower are not subject to any state statute regulating investments of, or fiduciary
obligations with respect to, governmental plans similar to the provisions of Section 406 of ERISA or Section 4975 of the Code currently in effect, which prohibit or otherwise restrict the transactions contemplated by this Agreement. 
  
 4.1.10 Compliance. Borrower and the Property
(including the use thereof) comply in all material respects with all applicable Legal Requirements, including, without limitation, building and zoning ordinances and codes. Borrower is not in default or violation of any order, writ, injunction,
decree or demand of any Governmental Authority. There has not been committed by Borrower, to Borrower’s knowledge, or any other Person in occupancy of or involved with the operation or use of the Property any act or omission affording any
Governmental Authority the right of forfeiture as against the Property or any part thereof or any monies paid in performance of Borrower’s obligations under any of the Loan Documents. 
  
 4.1.11 Financial Information. All financial data,
including, without limitation, the statements of cash flow and income and operating expense, that have been delivered to Lender in connection with the Loan (i) fairly and accurately represent the financial condition of the Significant Parties and
the Property as of the date of such reports, and (iii) to the extent audited by an independent certified public accounting firm, have been prepared in accordance with GAAP throughout the periods covered, except as disclosed therein. Except for
Permitted Encumbrances, Borrower does not have any contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments that are known to Borrower and reasonably
likely to have a Material Adverse Effect on the Property or the operation thereof as a hotel, except as referred to or reflected in said financial statements. Since the date of such financial statements, there has been no material adverse change in
the financial condition, operation or business of Borrower from that set forth in said financial statements. 
  
 4.1.12 Condemnation. No Condemnation or other proceeding has been commenced or, to Borrower’s knowledge, is threatened or
contemplated with respect to all or any portion of the Property or for the relocation of any roadway providing access to the Property. 
  
 4.1.13 Federal Reserve Regulations. No part of the proceeds of the Loan will be used for the purpose of purchasing or acquiring any
“margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose 

  

 46 

 
which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors, or for any purposes prohibited by any Legal
Requirements or by the terms and conditions of this Agreement or the other Loan Documents. 
  
 4.1.14 Utilities and Public Access. The Property has rights of access to public ways and is served by water, sewer, sanitary sewer
and storm drain facilities adequate to service the Property for its intended uses. All public utilities necessary or convenient to the full use and enjoyment of the Property are located either in the public right-of-way abutting the Property (which
are connected so as to serve the Property without passing over other property) or in recorded easements serving the Property and such easements are set forth in and insured by the Title Insurance Policy. All roads necessary for the use of the
Property for its current purpose have been completed and dedicated to public use and accepted by all Governmental Authorities. 
  
 4.1.15 Not a Foreign Person. Borrower is not a “foreign person” within the meaning of §1445(f)(3) of the Code.

  
 4.1.16 Separate Lots. The Property is
comprised of one (1) or more parcels which constitute a separate tax lot or lots and does not constitute a portion of any other tax lot not a part of the Property. 
  
 4.1.17 Assessments. To Borrower’s knowledge, there are (a) no pending or proposed special or
other assessments for public improvements or otherwise affecting the Property, and (ii) no contemplated improvements to the Property that may result in such special or other assessments. 
  
 4.1.18 Enforceability. The Loan Documents are not subject to any right of rescission, set-off,
counterclaim or defense by Borrower, Principal or Guarantor, including the defense of usury, nor would the operation of any of the terms of the Loan Documents, or the exercise of any right thereunder, render the Loan Documents unenforceable (subject
to principles of equity and bankruptcy, insolvency and other laws generally affecting creditors’ rights and the enforcement of debtors’ obligations), and Borrower, Principal and Guarantor have not asserted any right of rescission, set-off,
counterclaim or defense with respect thereto. 
  
 4.1.19 No Prior Assignment. There are no prior assignments of the Leases or any portion of the Rents due and payable or to become due and payable which are presently outstanding. 
  
 4.1.20 Insurance. Borrower has obtained and has
delivered to Lender valid certificates of insurance evidencing the Policies along with evidence satisfactory to Lender of the payment in full of all premiums required thereunder. No claims have been made under any such Policies, and no Person,
including Borrower, has done, by act or omission, anything which would impair the coverage of any such Policies. Borrower shall use commercially reasonable efforts to obtain and deliver to Lender certified copies of the Policies as soon as
practicable after the date of this Agreement. 
  
 4.1.21 Use of Property. The Property is used exclusively as a hotel and other appurtenant and related uses. 
  

 47 

 4.1.22 Certificate of Occupancy; Licenses. All material certifications, permits,
licenses and approvals, including without limitation, certificates of completion and occupancy permits, required for the legal use, occupancy and/or operation of the Property as a hotel (collectively, the “Licenses”), have been
obtained and are in full force and effect. Borrower shall keep and maintain all Licenses necessary for the operation of the Property as a hotel. The use being made of the Property is in conformity in all material respects with the certificate of
occupancy issued for the Property. 
  
 4.1.23
Flood Zone. None of the Improvements on the Property are located in an area identified by the Federal Emergency Management Agency as an area having special flood hazards or, if so located, the flood insurance required pursuant to Section
6.1(a)(i) hereof is in full force and effect with respect to the Property. 
  
 4.1.24 Physical Condition. The Property, including, without limitation, all buildings, improvements, parking facilities, sidewalks,
storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment, elevators, exterior sidings and doors, landscaping, irrigation systems and all structural components are in good condition, order
and repair in all material respects. Other than as disclosed in the “Engineering Report,” there exists no structural or other material defects or damages in the Property, whether latent or otherwise, and Borrower has not received notice
from any insurance company or bonding company of any defects or inadequacies in the Property, or any part thereof, which would adversely affect the insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of
any termination or threatened termination of any policy of insurance or bond. 
  
 4.1.25 Boundaries. All of the Improvements which were included in determining the appraised value of the Property lie wholly within the boundaries and building restriction lines of the Property, and no
improvements on adjoining properties encroach upon the Property, and no easements or other encumbrances upon the Property encroach upon any of the Improvements, so as to affect the value or marketability of the Property except those which are
insured against by the Title Insurance Policy. 
  
 4.1.26 Leases. The Property is not subject to any Leases other than the Leases described in Schedule I attached hereto and made a part hereof. No Person has any possessory interest in the Property or right to occupy the same
except under and pursuant to the provisions of the Leases or as hotel guests, customers or invitees in the ordinary course of business at the Property. The current Leases are in full force and effect and there are no defaults thereunder by either
party and there are no conditions that, with the passage of time or the giving of notice, or both, would constitute defaults thereunder. The copies of the Leases delivered to Lender are true and complete, and there are no oral agreements with
Borrower with respect thereto; (Lender acknowledges and agrees that Borrower has no obligation to deliver copies of Leases under 5,000 square feet unless specifically so requested by Lender). No Rent (including security deposits) has been paid more
than one (1) month in advance of its due date. All work to be performed by Borrower under each Lease has been performed as required in such Lease and has been accepted by the applicable tenant, and any payments, free rent, partial rent, rebate of
rent or other payments, credits, allowances or abatements required to be given by Borrower to any tenant has already been received by such tenant. There has been no prior sale, transfer or 

  

 48 

 
assignment, hypothecation or pledge of any Lease or of the Rents received therein which is still in effect. No tenant listed on Schedule I has
assigned its Lease or sublet all or any portion of the premises demised thereby, no such tenant holds its leased premises under assignment or sublease, nor does anyone except such tenant and its employees occupy such leased premises. No tenant under
any Lease has a right or option pursuant to such Lease or otherwise to purchase all or any part of the Property of which the leased premises are a part. No tenant under any Lease has any right or option for additional space in the Improvements.

  
 4.1.27 Survey. The Survey for the
Property delivered to Lender in connection with this Agreement has been prepared in accordance with the provisions of Section 3.1.3(c) hereof, and does not fail to reflect any material matter affecting the Property or the title thereto.

  
 4.1.28 Principal Place of Business; State
of Organization. Borrower’s principal place of business as of the date hereof is the address set forth in the introductory paragraph of this Agreement. The Borrower is organized under the laws of the State of Delaware. 
  
 4.1.29 Filing and Recording Taxes. All transfer
taxes, deed stamps, intangible taxes or other amounts in the nature of transfer taxes required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the transfer of the Property to Borrower have been
paid. All mortgage, mortgage recording, stamp, intangible or other similar tax required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the execution, delivery, recordation, filing, registration,
perfection or enforcement of any of the Loan Documents, including, without limitation, the Mortgage and the Second Mortgage, have been paid or are being paid simultaneously herewith, and the Mortgage and the Second Mortgage and the other Loan
Documents have been validly executed and delivered and are enforceable in accordance with their respective terms by Lender (or any subsequent holder thereof), subject to principles of equity and bankruptcy, insolvency and other laws generally
applicable to creditors’ rights and the enforcement of debtors’ obligations. 
  
 4.1.30 Special Purpose Entity/Separateness. 
  
 (a) Until the Debt has been paid in full, Borrower hereby represents, warrants and covenants that (i)
Borrower is, shall be and shall continue to be a Special Purpose Entity, and (ii) Principal is, shall be and shall continue to be a Special Purpose Entity. 
  
 (b) The representations, warranties and covenants set forth in Section 4.1.30(a) shall survive for so long as any amount remains
payable to Lender under this Agreement or any other Loan Document. 
  
 (c) All of the assumptions made in the Insolvency Opinion, including, but not limited to, any exhibits attached thereto, are true and correct in all respects material to the opinions set forth therein and any
assumptions made in any subsequent non-consolidation opinion required to be delivered in connection with the Loan Documents (an “Additional Insolvency Opinion”), including, but not limited to, any exhibits attached thereto, will
have been and shall be true and correct in all respects. Borrower has complied and will comply with, and Principal has complied and Borrower will cause Principal to comply with, all of the assumptions made with respect to Borrower and Principal in
the Insolvency Opinion. Borrower 

  

 49 

 
will, and shall cause Principal to, have complied and will comply with all of the assumptions made with respect to Borrower and Principal in any Additional
Insolvency Opinion. Each entity other than Borrower and Principal with respect to which an assumption shall be made in any Additional Insolvency Opinion will have complied and will comply with all of the assumptions made with respect to it in any
Additional Insolvency Opinion. 
  
 4.1.31
Management Agreement. The Management Agreement is in full force and effect and there is no default continuing beyond applicable grace or cure periods thereunder by any party thereto and no event has occurred that, with the passage of time
and/or the giving of notice would constitute a default thereunder. 
  
 4.1.32 Illegal Activity. To Borrower’s knowledge, no portion of the Property has been or will be purchased with proceeds of any illegal activity. 
  
 4.1.33 No Change in Facts or Circumstances;
Disclosure. All information submitted by Borrower to Lender including, but not limited to, rent rolls, reports, certificates and other documents submitted in connection with the Loan or in satisfaction of the terms thereof and all statements of
fact made by Borrower in this Agreement or in any other Loan Document, are accurate, complete and correct in all material respects. There has been no material adverse change in any condition, fact, circumstance or event that would make any such
information inaccurate, incomplete or otherwise misleading in any material respect or that otherwise is reasonably likely to have a Material Adverse Effect. Borrower has disclosed to Lender all material facts and has not failed to disclose any
material fact that could cause any Provided Information or representation or warranty made herein to be materially misleading. 
  
 4.1.34 Investment Company Act. Borrower is not (a) an “investment company” or a company “controlled” by an
“investment company,” within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a
“holding company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as amended; or (c) subject to any other federal or state law or regulation which purports to restrict or regulate
its ability to borrow money. 
  
 4.1.35
Embargoed Person. At all times throughout the term of the Loan, including after giving effect to any Transfers permitted pursuant to the Loan Documents, (a) none of the funds or other assets of Borrower or Principal shall constitute property
of, or shall be beneficially owned, directly or indirectly, by any Person subject to trade restrictions under United States law, including, but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The
Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated under any such United States laws, with the result that the investment in Borrower or Principal, as applicable (whether directly or
indirectly), is or would be prohibited by law (each, an “Embargoed Person”) or the Loan made by Lender is or would be in violation of law; (b) no Embargoed Person shall have any interest of any nature whatsoever in Borrower or
Principal, as applicable, with the result that the investment in Borrower or Principal, as applicable (whether directly or indirectly), is or would be prohibited by law or the Loan is or would be in violation of law; and (c) none of the funds of
Borrower, Principal or Guarantor, as applicable, shall be derived from any unlawful activity by Borrower, 

  

 50 

 
Principal or Guarantor with the result that the investment in Borrower, Principal or Guarantor, as applicable (whether directly or indirectly), is or would
be prohibited by law or the Loan is or would be in violation of law. 
  
 4.1.36 Cash Management Account. 
  
 (a) This Agreement, together with the other Loan Documents, creates a valid and continuing security interest (as defined in the Uniform Commercial Code of the State of Delaware) in the Property Account and Cash
Management Account in favor of Lender, which security interest is prior to all other Liens, other than Permitted Encumbrances, and is enforceable as such against creditors of and purchasers from Borrower. Other than in connection with the Loan
Documents and except for Permitted Encumbrances, Borrower has not sold or otherwise conveyed the Property Account and Cash Management Account; 
  
 (b) Intentionally Omitted. 
  
 (c) Pursuant and subject to the terms hereof, the Property Account Bank has agreed to comply with all instructions originated by Lender
and Borrower, as applicable, without further consent by Borrower, directing disposition of the Property Account and all sums at any time held, deposited or invested therein, together with any interest or other earnings thereon, and all proceeds
thereof (including proceeds of sales and other dispositions), whether accounts, general intangibles, chattel paper, deposit accounts, instruments, documents or securities; and 
  
 (d) The Property Account and Cash Management Account are not in the name of any Person other than Borrower,
as pledgor, or Lender, as pledgee. 
  
 4.1.37
Intentionally Omitted. 
  
 4.1.38
Intentionally Omitted. 
  
 Section 4.2 Survival of
Representations. Borrower agrees that all of the representations and warranties of Borrower set forth in Section 4.1 hereof and elsewhere in this Agreement and in the other Loan Documents shall survive for so long as any amount remains
owing to Lender under this Agreement or any of the other Loan Documents by Borrower. All representations, warranties, covenants and agreements made in this Agreement or in the other Loan Documents by Borrower shall be deemed to have been relied upon
by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf. 
  

 51 

 ARTICLE 5 
  

BORROWER COVENANTS 
  
 Section 5.1 Affirmative Covenants. From the date hereof and until payment and performance in full of all obligations of Borrower under the Loan
Documents or the earlier release of the Lien of the Mortgage (and all related obligations) in accordance with the terms of this Agreement and the other Loan Documents, Borrower hereby covenants and agrees with Lender that: 
  
 5.1.1 Existence; Compliance with Legal Requirements.
Borrower shall do or cause to be done all things necessary to preserve, renew and keep in full force and effect its existence, rights, licenses, permits and franchises and comply, in all material respects, with all Legal Requirements applicable to
Borrower and the Property. There shall never be committed by Borrower, and Borrower shall not permit any other Person in occupancy of or involved with the operation or use of the Property to commit, any act or omission affording the federal
government or any state or local government the right of forfeiture against the Property or any part thereof or any monies paid in performance of Borrower’s obligations under any of the Loan Documents. Borrower hereby covenants and agrees not
to commit, permit or suffer to exist any act or omission affording such right of forfeiture. Borrower shall at all times reasonably maintain, preserve and protect all material franchises and material trade names, preserve all the remainder of its
property used or useful in the conduct of its business, and shall keep the Property in reasonably good working order and repair, and from time to time make, or cause to be made, all reasonably necessary repairs, renewals, replacements, betterments
and improvements thereto, all as more fully provided in the Mortgage. Borrower shall keep the Property insured at all times by financially sound and reputable insurers, to such extent and against such risks, and maintain liability and such other
insurance, as is more fully provided in this Agreement. After prior notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding promptly initiated and conducted in good faith and with due diligence, the validity of
any Legal Requirement, the applicability of any Legal Requirement to Borrower or the Property or any alleged violation of any Legal Requirement, provided, that: (a) no Release Default or Event of Default has occurred and remains
uncured; (b) Borrower is permitted to do so under the provisions of any mortgage or deed of trust superior in lien to the Mortgage; (c) such proceeding shall be permitted under and be conducted in accordance with the provisions of any instrument to
which Borrower is subject and shall not constitute a default thereunder and such proceeding shall be conducted in accordance with all applicable statutes, laws and ordinances; (d) neither the Property nor any part thereof or interest therein will be
in danger of being sold, forfeited, terminated, cancelled or lost; (e) Borrower shall, upon final determination thereof, promptly comply with any such Legal Requirement determined to be valid or applicable or cure any violation of any Legal
Requirement; (f) such proceeding shall suspend the enforcement of the contested Legal Requirement against Borrower and/or the Property; and (g) Borrower shall furnish such security as may be required in the proceeding, or as may be reasonably
requested by Lender, to insure compliance with such Legal Requirement, together with all interest and penalties payable in connection therewith. Lender may apply any such security, as necessary to cause compliance with such Legal Requirement at any
time when, in the reasonable judgment of Lender, the validity, applicability or violation of such Legal Requirement is finally established or the Property (or any part thereof or interest therein) shall be in imminent danger of being sold,
forfeited, terminated, cancelled or lost. 
  
 5.1.2 Taxes and Other Charges. Borrower shall pay all Taxes and Other Charges now or hereafter levied or assessed or imposed against the Property, or any part thereof, prior to delinquency; provided, however,
Borrower’s obligation to directly pay Taxes shall be suspended for so long as adequate reserves for same are maintained pursuant to Section 7.2 hereof. Borrower shall furnish to Lender receipts for the payment of the Taxes and the Other
Charges prior to the date the same shall become delinquent provided, however, Borrower is not required to furnish such receipts for payment of Taxes in the event that such Taxes have been paid by Lender pursuant to Section 7.2
hereof. Borrower shall not suffer and shall promptly 

  

 52 

 
cause to be paid and discharged any Lien or charge whatsoever which may be or become a Lien or charge against the Property and that is prohibited in
accordance with Section 5.2.2 hereof, and shall pay for all utility services provided to the Property prior to delinquency. After prior notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding, promptly
initiated and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any Taxes, Other Charges or other Liens, provided, that: (a) no Release Default or Event of Default has occurred
and remains uncured; (b) Borrower is permitted to contest same under the provisions of any mortgage or deed of trust superior in lien to the Mortgage; (c) such proceeding shall be permitted under and be conducted in accordance with the provisions of
any other instrument to which Borrower is subject and shall not constitute a default thereunder and such proceeding shall be conducted in accordance with all applicable statutes, laws and ordinances; (d) neither the Property nor any part thereof or
interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost; (e) Borrower shall promptly upon final determination thereof pay the amount of any such Taxes or Other Charges, together with all costs, interest and
penalties which may be payable in connection therewith; (f) such proceeding shall suspend the collection of such contested Taxes or Other Charges from the Property; and (g) Borrower shall furnish such security as may be required in the proceeding,
or as may be reasonably requested by Lender, to insure the payment of any such Taxes or Other Charges, together with all interest and penalties thereon. Lender may pay over any such other security or part thereof held by Lender to the claimant
entitled thereto at any time when, in the judgment of Lender, the entitlement of such claimant is established or the Property (or any part thereof or interest therein) shall be in imminent danger of being sold, forfeited, terminated, cancelled or
lost or there shall be any danger of the Lien of the Mortgage or the Second Mortgage being primed by any related Lien. 
  
 5.1.3 Litigation. Borrower shall give prompt notice to Lender of any litigation or governmental proceedings pending or threatened
in writing against Borrower, Principal and/or Guarantor which is reasonably likely to cause a Material Adverse Effect. 
  
 5.1.4 Access to Property. Borrower shall permit agents, representatives and employees of Lender to inspect the Property or any part
thereof at reasonable hours upon reasonable advance notice (which may be given verbally). 
  
 5.1.5 Notice of Default. Borrower shall promptly advise Lender of any material adverse change in Borrower’s, Principal’s
or Guarantor’s condition, financial or otherwise, or of the occurrence of any Default or Event of Default of which Borrower has knowledge. 
  
 5.1.6 Cooperate in Legal Proceedings. Borrower shall cooperate fully with Lender with respect to any proceedings before any court,
board or other Governmental Authority which may in any way affect the rights of Lender hereunder or any rights obtained by Lender under any of the other Loan Documents and, in connection therewith, permit Lender, at its election, to participate in
any such proceedings. 
  
 5.1.7 Perform Loan
Documents. Borrower shall observe, perform and satisfy all the terms, provisions, covenants and conditions of, and shall pay when due all costs, fees and expenses to the extent required under the Loan Documents executed and delivered by, or
applicable to, Borrower. Payment of the costs and expenses associated with any of the foregoing 

  

 53 

 
shall be in accordance with the terms and provisions of this Agreement, including, without limitation, the provisions of Section 10.13 hereof.

  
 5.1.8 Award and Insurance Benefits.
Borrower shall cooperate with Lender in obtaining for Lender the benefits of any Awards or Insurance Proceeds lawfully or equitably payable in connection with the Property, and Lender shall be reimbursed for any expenses reasonably incurred in
connection therewith (including reasonable attorneys’ fees and disbursements, and the payment by Borrower of the expense of an appraisal on behalf of Lender in case of Casualty or Condemnation affecting the Property or any part thereof) out of
such Insurance Proceeds. 
  
 5.1.9 Further
Assurances. Borrower shall, at Borrower’s sole cost and expense: 
  
 (a) furnish to Lender all instruments, documents, boundary surveys, footing or foundation surveys, certificates, plans and specifications, appraisals, title and other insurance reports and agreements, and each and
every other document, certificate, agreement and instrument required to be furnished by Borrower pursuant to the terms of the Loan Documents or which are reasonably requested by Lender in connection therewith; 
  
 (b) execute and deliver to Lender such documents,
instruments, certificates, assignments and other writings, and do such other acts necessary or desirable, to evidence, preserve and/or protect the collateral at any time securing or intended to secure the obligations of Borrower under the Loan
Documents, as Lender may reasonably require; and 
  
 (c) do and execute all and such further lawful and reasonable acts, conveyances and assurances for the better and more effective carrying out of the intents and purposes of this Agreement, the other Loan Documents, as Lender shall
reasonably require from time to time. 
  
 5.1.10
Mortgage Taxes. Borrower represents that it has paid all state, county and municipal recording and all other taxes imposed upon the execution and recordation of the Mortgage. 
  
 5.1.11 Financial Reporting. 
  
 (a) Borrower will keep and maintain or will cause to be kept and maintained on a Fiscal Year basis, in
accordance with GAAP and the Uniform System of Accounts (or such other accounting basis acceptable to Lender), proper and accurate books, records and accounts reflecting all of the financial affairs of Borrower and all items of income and expense in
connection with the operation of the Property. Lender shall have the right from time to time at all times during normal business hours upon reasonable notice (which may be verbal) to examine such books, records and accounts at the office of Borrower
or any other Person maintaining such books, records and accounts and to make such copies or extracts thereof as Lender shall desire. After the occurrence of an Event of Default, Borrower shall pay any costs and expenses incurred by Lender to examine
Borrower’s accounting records with respect to the Property, as Lender shall determine to be necessary or appropriate in the protection of Lender’s interest. 
  

 54 

 (b) Borrower will furnish to Lender annually, within one hundred twenty (120) days
following the end of each Fiscal Year of Borrower, a complete copy of Borrower’s combined annual financial statements (combined with those of the Other Borrowers) and Guarantor’s consolidated annual financial statements audited by a
“Big Four” accounting firm or other independent certified public accountant acceptable to Lender in accordance with GAAP (or such other accounting basis acceptable to Lender) covering the Property and the Other Properties for such Fiscal
Year and containing statements of profit and loss for Borrower, the Other Borrowers and Guarantor and a balance sheet for Borrower, the Other Borrowers and Guarantor. Such statements, with respect to the Borrower and the Other Borrowers shall set
forth the financial condition and the results of operations for the Property and the Other Properties for such Fiscal Year, and shall include, but not be limited to, amounts representing annual Aggregate Net Cash Flow, Aggregate Net Operating
Income, Aggregate Gross Income from Operations and Aggregate Operating Expenses. In addition, such statements shall include supplementary information setting forth the financial condition and results of operation for each of Borrower and the Other
Borrowers, Borrower’s, the Other Borrowers’ and Guarantor’s annual financial statements shall be accompanied by (i) an unqualified opinion of a “Big Four” accounting firm or other independent certified public accountant
reasonably acceptable to Lender, (ii) a schedule audited by such independent certified public accountant reconciling Aggregate Net Operating Income to Aggregate Net Cash Flow (the “Net Cash Flow Schedule”), which shall itemize all
adjustments made to Aggregate Net Operating Income to arrive at Aggregate Net Cash Flow deemed material by such independent certified public accountant, and (iii) an Officer’s Certificate certifying that (x) the Capital Expenditures for such
year and (y) each annual financial statement presents fairly the financial condition and the results of operations of Borrower, the Other Borrowers, Guarantor and the Property and the Other Properties being reported upon and that such financial
statements have been prepared in accordance with GAAP and as of the date thereof whether there exists an event or circumstance which constitutes a Default or Event of Default under the Loan Documents executed and delivered by, or applicable to,
Borrower, the Other Borrowers or Guarantor, and if such Default or an Event of Default exists, the nature thereof, the period of time it has existed and the action then being taken to remedy the same. 
  
 (c) Borrower will furnish, or cause to be furnished, to
Lender on or before (i) twenty-five (25) days after the end of each calendar month thereafter, and (ii) forty-five (45) days after the end of each calendar quarter thereafter, the following items, accompanied by an Officer’s Certificate stating
that such items are true, correct, accurate, and complete and fairly present the financial condition and results of the operations of Borrower and the Property (subject to normal year-end adjustments) as applicable: (i) monthly and year-to-date
operating statements prepared for each calendar month, noting Net Operating Income, Gross Income from Operations, and Operating Expenses (not including any contributions to the FF&E Reserve Funds and/or the Debt Service Reserve), and, upon
Lender’s request, other information necessary and sufficient to fairly represent the financial position and results of operation of the Property during such period, and containing a comparison of budgeted income and expenses and the actual
income and expenses together with a detailed explanation of any variances that either exceed (1) 10% and $10,000 with respect to any one (1) line item or (2) 5% in the aggregate between all budgeted and actual amounts for such periods, all in form
reasonably satisfactory to Lender; and (ii) a calculation reflecting the annual Debt Service Coverage Ratio for the immediately preceding twelve (12) month period for which financial statements are available as of the last day of each calendar month
or quarter (as applicable), and (iii) a computation of Net 

  

 55 

 
Cash Flow for such period. In addition, such Officer’s Certificate shall also state that the representations and warranties of Borrower set forth in
Section 4.1.30 are true and correct as of the date of such certificate and whether there are trade payables outstanding for more than sixty (60) days. 
  

(d) Intentionally Omitted. 
  
 (e) Intentionally Omitted. 
  
 (f) Intentionally Omitted. 
  
 (g) Intentionally Omitted. 
  
 (h) Intentionally Omitted. 
  
 (i) Borrower will furnish to Lender on or before forty-five (45) days after the end of each calendar quarter (a) a statement setting forth
(i) the Aggregate Net Cash Flow for each calendar quarter and calendar year occurring during the full twelve (12) calendar month period immediately proceeding the date of such statement for which financial statements are available. 
  
 (j) Lender hereby approves the Annual Budget and the Annual
FF&E Budget for the partial year 2004 previously delivered to it. For each calendar year commencing with calendar year 2005, Borrower shall submit to Lender (i) an Annual Budget for the Property and (ii) an Annual FF&E Budget with respect to
FF&E required to be made to the Property for such year, each not later than thirty (30) days prior to the commencement of such period or calendar year in form reasonably satisfactory to Lender. The Annual FF&E Budget shall provide for
FF&E expenditures equal to at least four (4%) percent of the Gross Income from Operations derived from the operation of the Property during the preceding calendar year. The Annual Budget shall be subject to Lender’s reasonable written
approval (each such Annual Budget as so approved in writing by Lender, is herein referred to as an “Approved Annual Budget”). Notwithstanding the foregoing, variances between budgeted and actual amounts in the Approved Annual Budget
may vary by up to the greater of ten percent (10%) or $10,000.00 with respect to any one (1) line item and up to five percent (5%) in the aggregate for the entire Approved Annual Budget without the consent of Lender. The Annual FF&E Budget shall
likewise be subject to Lender’s reasonable written approval (each such Annual FF&E Budget as so approved in writing by Lender, is herein referred to as an “Approved Annual FF&E Budget”). In the event that Lender
objects to a proposed Annual Budget and/or Annual FF&E Budget submitted by Borrower, Lender shall advise Borrower of such objections within ten (10) Business Days after receipt thereof (and deliver to Borrower a reasonably detailed description
of such objections) and Borrower shall promptly revise such Annual Budget and/or Annual FF&E Budget, as applicable, and resubmit the same to Lender. Lender shall advise Borrower of any objections to such revised Annual Budget and/or Annual
FF&E Budget within five (5) Business Days after receipt thereof (and deliver to Borrower a reasonably detailed description of such objections) and Borrower shall promptly revise the same in accordance with the process described in this
subsection until Lender approves the Annual Budget and/or Annual FF&E Budget. Notwithstanding the foregoing, Lender shall be deemed to have consented to any 

  

 56 

 
Annual Budget and/or Annual FF&E Budget if Lender has not provided Borrower with a written notice of denial within ten (10) Business Days of
Lender’s receipt of such Annual Budget and/or Annual FF&E Budget so long as Borrower’s request is submitted with the words “IMMEDIATE RESPONSE REQUIRED, DEEMED APPROVED IF NO RESPONSE RECEIVED WITHIN TEN (10) BUSINESS DAYS”
in bold print, all capital letters, in 14 point or larger and prominently displayed at the top of any correspondence and on any envelope containing the request. Until such time that Lender approves a proposed Annual Budget and/or Annual FF&E
Budget (or approval is deemed given), the most recently Approved Annual Budget and/or Annual Approved FF&E Budget shall apply; provided, that, such Approved Annual Budget shall be adjusted to reflect actual increase in utility costs,
Taxes, Insurance Premiums and Other Charges. 
  
 (k) In the event that, Borrower must incur an extraordinary Operating Expense or Capital Expenditure not set forth in the Approved Annual Budget (each an “Extraordinary Expense”), then Borrower shall promptly
deliver to Lender a reasonably detailed explanation of such proposed Extraordinary Expense together with all invoices or other backup reasonably required by Lender to substitute such proposed Extraordinary Expense and the amount thereof;
provided, that, in the event Borrower is required to incur Extraordinary Expenses before Lender’s consent is granted due to emergencies involving imminent danger to person or property Lender’s consent shall not be required
with respect to such emergency only provided that Borrower shall promptly provide Lender with a reasonably detailed description of such expenditures and the emergency following same. No Rents may be used to pay an Extraordinary Expense unless and
until Lender has reasonably approved same in writing, which approval will not by unreasonably withheld or delayed; provided, however, Lender shall be deemed to have consented to such Extraordinary Expense if Lender has not provided Borrower with a
written notice of denial within ten (10) Business Days of Lender’s receipt of such request so long as Borrower’s request is submitted with the words “IMMEDIATE RESPONSE REQUIRED, DEEMED APPROVED IF NO RESPONSE RECEIVED WITHIN TEN (10)
BUSINESS DAYS” in bold print, all capital letters, in 14 point or larger and prominently displayed at the top of any correspondence and on any envelope containing the request. Notwithstanding the foregoing, Lender’s consent shall not be
required for the payment of Taxes, Insurance Premiums or utilities with respect to the Property in excess of the amounts provided for in the Approved Annual Budget for such items provided that Borrower shall provide prompt notice to Lender of such
increases following Borrower’s knowledge of such increase. 
  
 (l) Any reports, statements or other information required to be delivered under this Agreement shall be delivered (i) in paper form, (ii) on a diskette, and (iii) if requested by Lender and within the capabilities of
Borrower’s data systems without change or modification thereto, in electronic form and prepared using a Microsoft Word for Windows or WordPerfect for Windows files (which files may be prepared using a spreadsheet program and saved as word
processing files). Borrower agrees that Lender may disclose information regarding the Property and Borrower that is provided to Lender pursuant to this Section 5.1.11 in connection with the Securitization to such parties requesting such
information in connection with such Securitization. 
  
 5.1.12 Business and Operations. Borrower will continue to engage in the businesses presently conducted by it as and to the extent the same are necessary for the ownership, maintenance, management and operation of the Property.
Borrower will qualify to 

  

 57 

 
do business and will remain in good standing under the laws of each jurisdiction as and to the extent the same are required for the ownership, maintenance,
management and operation of the Property. 
  
 5.1.13 Title to the Property. Borrower will warrant and defend (a) the title to the Property and every part thereof, subject only to Liens permitted hereunder (including Permitted Encumbrances), and (b) the validity and priority of
the Lien of the Mortgage, the Second Mortgage and the Assignment of Leases, subject only to Liens permitted hereunder (including Permitted Encumbrances), in each case against the claims of all Persons whomsoever. Borrower shall reimburse Lender for
any losses, costs, damages or expenses (including reasonable attorneys’ fees and court costs) incurred by Lender if an interest in the Property, other than as permitted hereunder, is claimed by another Person. 
  
 5.1.14 Costs of Enforcement. In the event (a) that
the Mortgage and/or the Second Mortgage is foreclosed in whole or in part or that the Mortgage and/or the Second Mortgage is put into the hands of an attorney for collection, suit, action or foreclosure, (b) of the foreclosure of any mortgage prior
to or subsequent to the Mortgage and/or the Second Mortgage in which proceeding Lender is made a party, or (c) of the bankruptcy, insolvency, rehabilitation or other similar proceeding in respect of Borrower or any direct or indirect owners, members
or partners of Borrower or an assignment by Borrower or any direct or indirect owners, members or partners of Borrower for the benefit of its creditors, Borrower, on behalf of itself and its successors and assigns, agrees that it/they shall be
chargeable with and shall pay all costs of collection and defense, including attorneys’ fees and costs, incurred by Lender or Borrower in connection therewith and in connection with any appellate proceeding or post-judgment action involved
therein, together with all required service or use taxes. 
  
 5.1.15 Estoppel Statement. 
  
 (a) After request by Lender from time to time, but no more frequently than twice in any 12 month period, Borrower shall within ten (10) days furnish Lender with a statement, duly acknowledged and certified, setting
forth (i) the original principal amount of the Loan, (ii) the Outstanding Principal Balance, (iii) the date installments of interest and/or principal were last paid, (iv) any offsets or defenses to the performance of the Obligations, if any, and (v)
that the Note, this Agreement, the Mortgage and the other Loan Documents are valid, legal and binding obligations of Borrower and have not been modified or if modified, giving particulars of such modification. 
  
 (b) Borrower shall deliver to Lender promptly upon request
from time to time and subject to the terms of the Leases, tenant estoppel certificates from each commercial tenant leasing 5,000 square feet or more of space at the Property in form and substance reasonably satisfactory to Lender; provided,
that, Borrower shall not be required to deliver such certificates more frequently than two (2) times in any calendar year. 
  
 (c) Intentionally Omitted. 
  
 5.1.16 Loan Proceeds. Borrower shall use the proceeds of the Loan received by it on the Closing Date only for the purposes set
forth in Section 2.1.4 hereof. 
  

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 5.1.17 Performance by Borrower. Borrower shall not enter into or otherwise suffer
or permit any amendment, waiver, supplement, termination or other modification of any Loan Document executed and delivered by, or applicable to, Borrower without the prior consent of Lender. 
  
 5.1.18 Confirmation of Representations. Borrower
shall deliver, in connection with any Securitization, (a) one or more Officer’s Certificates certifying as to the accuracy of all representations made by Borrower in the Loan Documents as of the date of the closing of such Securitization in all
relevant jurisdictions, and (b) certificates of the relevant Governmental Authorities in all relevant jurisdictions indicating the good standing and qualification of Borrower and Principal as of the date of the Securitization. 
  
 5.1.19 No Joint Assessment. Borrower shall not
suffer, permit or initiate the joint assessment of the Property (a) with any other real property constituting a tax lot separate from the Property, and (b) which constitutes real property with any portion of the Property which may be deemed to
constitute personal property, or any other procedure whereby the lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to such real property portion of the Property. 
  
 5.1.20 Leasing Matters. Any Leases with respect to
the Property executed after the date hereof, for more than 5,000 square feet shall be approved by Lender, which approval shall not be unreasonably withheld, delayed or conditioned. Upon request, Borrower shall furnish Lender with executed copies of
all Leases. All renewals of Leases and all proposed Leases shall provide for rental rates comparable to existing local market rates. All proposed Leases shall be on commercially reasonable terms and shall not contain any terms which would materially
affect Lender’s rights under the Loan Documents. All Leases executed after the date hereof shall provide that they are subordinate to the Mortgage and that the lessee agrees to attorn to Lender or any purchaser at a sale by foreclosure or power
of sale. Borrower shall (a) observe and perform the obligations imposed upon the lessor under the Leases in a commercially reasonable manner; (b) enforce and may amend or terminate the terms, covenants and conditions contained in the Leases upon the
part of the lessee thereunder to be observed or performed in a commercially reasonable manner and in a manner not to impair the value of the Property involved except that no termination by Borrower or acceptance of surrender by a tenant of any
Leases of more than 5,000 square feet shall be permitted unless by reason of a tenant default and then only in a commercially reasonable manner to preserve and protect the Property; provided, however, that no such termination or
surrender of any Lease covering more than 5,000 square feet will be permitted without the consent of Lender; (c) not collect any of the rents more than one (1) month in advance (other than security deposits); (d) not execute any other assignment of
lessor’s interest in the Leases or the Rents (except as contemplated by the Loan Documents); (e) not alter, modify or change the terms of any Lease in excess of 5,000 square feet in a manner inconsistent with the provisions of the Loan
Documents; and (f) execute and deliver at the request of Lender all such further assurances, confirmations and assignments in connection with the Leases as Lender shall from time to time reasonably require. Notwithstanding anything to the contrary
contained herein, Borrower shall not enter into a lease of all or substantially all of the Property without Lender’s prior consent. 
  

 59 

 5.1.21 Alterations. Borrower shall obtain Lender’s prior consent to any
alterations to any Improvements (excluding Decorative Changes), which consent shall not be unreasonably withheld, delayed or conditioned. Notwithstanding the foregoing, Lender’s consent shall not be required in connection with: any alterations
to the Improvements (excluding Decorative Changes) that will not have a Material Adverse Effect, provided, that, such alterations (a) are made in connection with tenant improvement work performed pursuant to the terms of any Lease
executed on or before the date hereof, (b) do not adversely affect any structural component of any Improvements, any utility or HVAC system contained in any Improvements or the exterior of any building constituting a part of any Improvements and the
aggregate cost thereof does not exceed $1,000,000.00 (the “Threshold Amount”), or (c) are performed in connection with Restoration after the occurrence of a Casualty in accordance with the terms and provisions of this Agreement. If
the total unpaid amounts due and payable with respect to alterations to the Improvements at the Property shall at any time exceed the Threshold Amount, Borrower shall promptly deliver to Lender as security for the payment of such amounts and as
additional security for Borrower’s obligations under the Loan Documents any of the following: (i) cash, (ii) U.S. Obligations, (iii) other securities having a rating acceptable to Lender and that the applicable Rating Agencies have confirmed in
writing will not, in and of itself, result in a downgrade, withdrawal or qualification of the initial, or, if higher, then current ratings assigned to any Securities or any class thereof in connection with any Securitization, or (iv) a completion
and performance bond or an irrevocable letter of credit (payable on sight draft only) issued by a financial institution (A) having a rating by S&P of not less than “A-1+” if the term of such bond or letter of credit is no longer than
three (3) months or, if such term is in excess of three (3) months, issued by a financial institution having a rating that is reasonably acceptable to Lender, and (B) that the applicable Rating Agencies have confirmed in writing will not, in and of
itself, result in a downgrade, withdrawal or qualification of the initial, or, if higher, then current ratings assigned to any Securities or any class thereof in connection with any Securitization. Such security shall be in an amount equal to the
excess of the total unpaid amounts with respect to alterations to the Improvements on the Property (other than such amounts to be paid or reimbursed by tenants under the Leases) over the Threshold Amount and upon an Event of Default Lender may apply
such security from time to time at the option of Lender to pay for such alterations. 
  
 5.1.22 Operation of Property. 
  
 (a) Borrower shall cause the Property to be operated, in all material respects, in accordance with the Management Agreement or Replacement
Management Agreement, as applicable. In the event that the Management Agreement expires or is terminated (without limiting any obligation of Borrower to obtain Lender’s consent to any termination or modification of the Management Agreement in
accordance with the terms and provisions of this Agreement), Borrower shall promptly enter into a Replacement Management Agreement with Manager or another Qualified Manager, as applicable. 
  
 (b) Borrower shall: (i) promptly perform and/or observe in
all material respects all of the covenants and agreements required to be performed and observed by Borrower under the Management Agreement and do all things necessary to preserve and to keep unimpaired its material rights thereunder; (ii) promptly
notify Lender of any material default under the Management Agreement of which it is aware; (iii) promptly deliver to Lender a copy 

  

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of each financial statement, business plan, capital expenditures plan, material notice, material report and estimate received by it under the Management
Agreement; and (iv) enforce the performance and observance of all of the covenants and agreements required to be performed and/or observed by Manager under the Management Agreement, in a commercially reasonable manner. 
  
 Section 5.2 Negative Covenants. From the date hereof until payment and
performance in full of all obligations of Borrower under the Loan Documents or the earlier release of the Lien of the Mortgage and Second Mortgage in accordance with the terms of this Agreement and the other Loan Documents, Borrower covenants and
agrees with Lender that it will not do, directly or indirectly, any of the following: 
  
 5.2.1 Operation of Property. 
  
 (a) Borrower shall not, without Lender’s prior consent (which consent shall not be unreasonably withheld): (i) subject to Section
9.5 hereof, surrender, terminate or cancel the Management Agreement; provided, that Borrower may, without Lender’s consent, replace the Manager so long as the replacement manager is a Qualified Manager pursuant to a Replacement
Management Agreement; (ii) reduce or consent to the reduction of the term of the Management Agreement; (iii) increase or consent to the increase of the amount of any charges or fees under the Management Agreement; or (iv) otherwise modify, change,
supplement, alter or amend, or waive or release any of its rights and remedies under, the Management Agreement in any material respect. 
  
 (b) Following the occurrence and during the continuance of an Event of Default, Borrower shall not exercise any rights, make any
decisions, grant any approvals or otherwise take any action under the Management Agreement without the prior consent of Lender, which consent may be withheld in Lender’s sole discretion, unless failure to do so would cause a default of
Borrower’s obligations under the Management Agreement. 
  
 5.2.2 Liens. Borrower shall not create, incur, assume or suffer to exist any Lien on any portion of the Property or permit any such action to be taken, except: 
  
 (a) Permitted Encumbrances; 
  
 (b) Liens created by or permitted pursuant to the Loan
Documents; and 
  
 (c) Liens for Taxes or Other
Charges not yet due. 
  
 5.2.3
Dissolution. Borrower shall not (a) engage in any dissolution, liquidation, consolidation or merger with or into any other business entity, (b) engage in any business activity not related to the ownership and operation of the Property, (c)
transfer, lease or sell, in one transaction or any combination of transactions, the assets or all or substantially all of the properties or assets of Borrower except to the extent permitted by the Loan Documents, (d) modify, amend, waive or
terminate its organizational documents or its qualification and good standing in any jurisdiction, or (e) cause Principal to (i) dissolve, wind up or liquidate or take any action, or omit to take any action, as a result of which Principal would be
dissolved, wound up or 

  

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liquidated in whole or in part, or (ii) amend, modify, waive or terminate the certificate of incorporation or bylaws of Principal, in each case, without
obtaining the prior consent of Lender. 
  
 5.2.4
Change in Business. Borrower shall not enter into any line of business other than the ownership and operation of the Property, or make any material change in the scope or nature of its business objectives, purposes or operations, or undertake
or participate in activities other than the continuance of its present business. 
  
 5.2.5 Debt Cancellation. Borrower shall not cancel or otherwise forgive or release any claim or debt (other than termination of
Leases in accordance herewith) owed to Borrower by any Person, except for adequate consideration and in the ordinary course of Borrower’s business. 
  
 5.2.6 Zoning. Borrower shall not initiate or consent to any zoning reclassification of any portion of the Property or seek any
variance under any existing zoning ordinance, or use or permit the use of any portion of the Property in any manner that could result in such use becoming a non-conforming use under any zoning ordinance or any other applicable land use law, rule or
regulation, in each case, without the prior consent of Lender. 
  
 5.2.7 No Joint Assessment. Borrower shall not suffer, permit or initiate the joint assessment of all or any portion of the Property with (a) any other real property constituting a tax lot separate from the
Property, or (b) any portion of the 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 the
Property. 
  
 5.2.8 Principal Place of
Business and Organization. Borrower shall not change its principal place of business set forth in the introductory paragraph of this Agreement without first giving Lender at least thirty (30) days prior notice. Borrower shall not change the
place of its organization as set forth in Section 4.1.28 without the consent of Lender, which consent shall not be unreasonably withheld. Upon Lender’s request, Borrower shall authorize the filing of additional financing statements,
security agreements and other instruments which may be necessary to effectively evidence or perfect Lender’s security interest in the Property as a result of such change of principal place of business or place of organization. 
  
 5.2.9 ERISA. 
  
 (a) Borrower shall not 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 ERISA. 
  
 (b)
Borrower further covenants and agrees to deliver to Lender such certifications or other evidence from time to time throughout the term of the Loan, as requested by Lender in its sole discretion, that (i) Borrower is not an “employee benefit
plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “governmental plan” within the meaning of Section 3(32) of ERISA; (ii) Borrower is not subject to any state statute regulating investments of, or
fiduciary obligations with respect to, governmental plans; and (iii) one or more of the following circumstances is true: 
  

	 	(i)	Equity interests in Borrower are publicly offered securities, within the meaning of 29 C.F.R. §2510.3-101(b)(2); 

  

 62 

	 	(ii)	Less than twenty-five percent (25%) of each outstanding class of equity interests in Borrower is held by “benefit plan investors” within the meaning of 29 C.F.R.
§2510.3-101(f)(2); or 

  

	 	(iii)	Borrower qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R. §2510.3-101(c) or (e).

  
 5.2.10 Transfers.

  
 (a) Except for the transfer of the Property
in connection with a release thereof pursuant to Section 2.5, Borrower shall not sell, convey, mortgage, grant, bargain, encumber, pledge, assign, grant options with respect to, or otherwise transfer or dispose of (directly or indirectly,
voluntarily or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) the Property or any part thereof or any legal or beneficial interest therein or permit a Sale or Pledge of an interest in any
Restricted Party (collectively, a “Transfer”), other than (x) pursuant to Leases of space in the Improvements to tenants in accordance with the provisions of Section 5.1.20 hereof, and (y) the disposition of Equipment and other
Personal Property pursuant to the replacement thereof or otherwise in the ordinary course of the operation of the Property, without (i) the prior written consent of Lender and (ii) if a Securitization has occurred or is pending within thirty (30)
days, delivery to Lender of written confirmation from the Rating Agencies that the Transfer will not result in the downgrade, withdrawal or qualification of the then current ratings assigned to any Securities or the proposed rating of any
Securities. 
  
 (b) A Transfer shall include, but
not be limited to: (i) an installment sales agreement wherein Borrower agrees to sell the Property or any part thereof for a price to be paid in installments; (ii) an agreement by Borrower leasing all or a substantial part of the Property for other
than actual occupancy by a space tenant thereunder or a sale, assignment or other transfer of, or the grant of a security interest in, Borrower’s right, title and interest in and to any Leases or any Rents; (iii) if a Restricted Party is a
corporation, any merger, consolidation or Sale or Pledge of such corporation’s stock or the creation or issuance of new stock; (iv) if a Restricted Party is a limited or general partnership or joint venture, any merger or consolidation or the
change, removal, resignation or addition of a general partner or the Sale or Pledge of the partnership interest of any general partner or any profits or proceeds relating to such partnership interest, or the Sale or Pledge of limited partnership
interests or any profits or proceeds relating to such limited partnership interests or the creation or issuance of new limited partnership interests; (v) if a Restricted Party is a limited liability company, any merger or consolidation or the
change, removal, resignation or addition of a- managing member or non-member manager (or if no managing member, any member) or the Sale or Pledge of the membership interest of a managing member (or if no managing member, any member) or any profits
or proceeds relating to such membership interest, or the Sale or Pledge of non-managing membership interests or the creation or issuance of new non-managing membership interests; or (vi) if a Restricted Party is a trust or 

  

 63 

 
nominee trust, any merger, consolidation or the Sale or Pledge of the legal or beneficial interest in a Restricted Party or the creation or issuance of new
legal or beneficial interests. 
  
 (c)
Notwithstanding the provisions of this Section 5.2.10, the following transfers shall not be deemed a Transfer: (i) a transfer by devise or descent or by operation of law upon the death of a member, partner or shareholder of a Restricted
Party; (ii) the Sale or Pledge, in one or a series of transactions, of not more than forty-nine percent (49%) of the stock in a Restricted Party; provided, however, no such transfers shall result in the change of voting control in the
Restricted Party, and as a condition to each such transfer, Lender shall receive not less than thirty (30) days prior written notice of such proposed transfer, (iii) the Sale or Pledge, in one or a series of transactions, of not more than forty-nine
percent (49%) of the limited partnership interests or non-managing membership interests (as the case may be) in a Restricted Party; provided, however, as a condition to each such transfer, Lender shall receive not less than thirty (30)
days prior written notice of such proposed transfer, (iv) transfers, issuances, pledges and redemptions of stock in Wyndham International, Inc. (“Wyndham”) (and its successors), so long as (A) Wyndham (or any such successor) is (or
is controlled by) a Public Company and (B) the surviving entity is primarily involved in, or has a significant business line involving, the ownership and operation of real estate similar to the Property, (v) the merger or consolidation of Wyndham
(or its successors), provided that the surviving entity of such merger or consolidation is (or is controlled by) (A) a Public Company, and (B) primarily involved in, or has a significant business line involving, the ownership or operation of
real estate similar to the Property, (vi) the granting of easements, cross-easements, agreements, restrictions, reservations and rights in the ordinary course of business for use, access, water and sewer lines, telephone and telegraph lines,
electric lines or other utilities or for other similar purposes, provided that no such easements, agreements, restrictions or rights shall materially impair the utility and/or operation of the Property or Borrower’s ability to repay the
Debt as it becomes due or Borrower’s ability to perform any of its obligations under the Loan Documents, and (vii) transfers of direct or indirect interests in any Borrower or Principal to Affiliates of Wyndham (or its successors)
provided that after such transfers such Borrower and Principal are controlled, directly or indirectly, by Wyndham (or its successors). In addition, on a one time basis, Wyndham may merge or consolidate with a public or private entity in which
the surviving entity is not and is not controlled by a Public Company provided that (a) after such merger, each Borrower and Principal shall continue to comply with the terms of Section 4.1.30 hereof, (b) such merger or consolidation
is to a Qualified Transferee, and (c) the surviving entity is primarily involved in, or has a significant business line involving, the ownership and operation of real estate similar to the Property. In connection with any transfer or merger
permitted under this Section 5.2.10, Borrower shall deliver an Additional Insolvency Opinion if, after such transfer or merger, more than forty-nine percent (49%) of any direct legal or beneficial interest in Borrower (or in any constituent
entity of Borrower that is required to comply with the terms of Section 4.1.30 hereof) is owned by a new or successor entity. Such Additional Insolvency Opinion shall be reasonably acceptable to (a) Lender, prior to a Securitization or (b)
the Rating Agencies, if a Securitization has occurred. Notwithstanding anything to the contrary contained herein, pledges and hypothecations of indirect equity interests in Borrower shall be permitted provided (i) Wyndham (or its successor)
maintains control of, and holds beneficial direct or indirect ownership interests of not less than fifty-one percent (51%) of the membership interests or partnership interests, as applicable, in, each entity comprising Borrower and (ii) any such
pledges or hypothecations are in connection with that certain Credit Agreement and that certain Increasing Rate Note Purchase 

  

 64 

 
and Loan Agreement each between Wyndham (or its successors) and The Chase Manhattan Bank, each dated June 30, 1999, as amended or another credit agreement
with an institutional lender or a public bond offering to prepay or refinance in full or in part any such credit facility which institutional lender or bondholders (or the trustee on their behalf), as applicable shall be making or holding a loan to
Wyndham or its successor or its Affiliates (other than Borrower or Principal). A foreclosure sale (or transfer in lieu thereof) of any such pledge or hypothecation to The Chase Manhattan Bank, or another institutional lender as collateral agent for
syndicate lenders or another institutional lender, or the bond trustee, shall be permitted provided (i) Lender is given at least sixty (60) days prior written notice of the proposed foreclosure sale or transfer in lieu thereof; (ii) the
transferee is a reputable entity or person, creditworthy, with sufficient financial worth considering any obligations assumed and undertaken with respect to the Loan, as evidenced by financial statements and other information reasonably requested by
Lender; (iii) the Property at all times shall continue to be managed by a Qualified Manager, and (iv) and any and all such entities will comply with all of the requirements set forth in the Note, this Agreement, the Mortgage and the other Loan
Documents. 
  
 (d) Lender shall not be required
to demonstrate any actual impairment of its security or any increased risk of default hereunder in order to declare the Debt immediately due and payable upon a Transfer without Lender’s consent to the extent required hereunder. This provision
shall apply to every Transfer regardless of whether voluntary or not, or whether or not Lender has consented to any previous Transfer. Notwithstanding anything to the contrary contained in this Section 5.2.10, (a) no transfer (whether or not
such transfer shall constitute a Transfer) shall be made to any Embargoed Person and (b) in the event any transfer (whether or not such transfer shall constitute a Transfer) results in any Person owning in excess of forty-nine percent (49%) of the
ownership interest in a Restricted Party, Borrower shall, prior to such transfer, deliver an updated Insolvency Opinion to Lender, which opinion shall be in form, scope and substance reasonably acceptable in all respects to Lender and the Rating
Agencies. 
  
 (e) Notwithstanding anything to the
contrary contained in this Section 5.2.10, Lender shall not withhold its consent to a one-time sale, assignment, or other transfer of all of the Property, provided that (i) Lender receives sixty (60) days prior written notice of such
transfer, (ii) no Event of Default has occurred and is continuing and (iii) upon the satisfaction (in the reasonable determination of Lender) of the following matters: 
  
 (A) Borrower or Transferee (defined below) shall pay Lender a transfer fee equal to 1% of the Outstanding
Principal Balance at the time of such transfer and pay any and all reasonable out-of-pocket costs incurred in connection with the Transfer (including, without limitation, Lender’s reasonable counsel fees and disbursements and all recording
fees, title insurance premiums and mortgage and intangible taxes and the fees and expenses of the Rating Agencies in connection with such Transfer); 
  
 (B) The proposed transferee (the “Transferee”) (i) shall be a special purpose bankruptcy remote entity that complies with
all of the requirements of Section 4.1.30 and whose organizational documents are substantially similar to Borrower’s organizational documents, or if not 

  

 65 

 
substantially similar, acceptable to the Rating Agencies and (ii) is controlled by a Qualified Transferee; 
  
 (C) Transferee shall assume all of the obligations of
Borrower under the Note, this Agreement, the Mortgage and the other Loan Documents in a manner reasonably satisfactory to Lender in all respects, including, without limitation, by entering into an assumption agreement in form and substance
reasonably satisfactory to Lender and delivering such legal opinions as Lender may reasonably require; 
  
 (D) The Property shall be managed by a Qualified Manager following such transfer; 
  
 (E) The proposed transfer is permitted pursuant to the
Franchise Agreement, if any, or the Franchisor consents to such proposed transfer if Franchisor has the right to consent to such proposed transfer; 
  
 (F) Transferee shall deliver an endorsement to the existing title policy insuring the Mortgage as modified by the assumption agreement, as
a valid first lien on the Property and naming the Transferee as owner of the fee or leasehold estate, as applicable, of the Property, which endorsement shall insure that as of the recording of the assumption agreement, the Property shall not be
subject to any additional exceptions or Liens other than Permitted Encumbrances, or if such endorsement is not available in the applicable jurisdiction, other evidence reasonably satisfactory to Lender confirming all of the foregoing; 
  
 (G) Transferee shall deliver to Lender an opinion of counsel
from an independent law firm with respect to the substantive nonconsolidation of Transferee and its constituent entities (partners, members or shareholders), which law firm and which opinion shall be reasonably satisfactory in all respects to (i)
Lender, if a Securitization has not occurred, or (ii) Lender and the Rating Agencies, if a Securitization has occurred; 
  
 (H) Transferee shall be a Qualified Transferee; 
  

(I) Transferee and Transferee’s Principal must be able to satisfy all the covenants set forth in Sections 4.3 and
5.9 hereof, no Release Default or Event of Default shall otherwise occur as a result of such transfer, and Transferee and Transferee’s Principal shall deliver (A) all organization documentation reasonably requested by Lender, which shall
be reasonably satisfactory to Lender, and (B) all certificates, agreements and covenants reasonably required by Lender; 
  
 (J) Following a Securitization, or at such time as the Loan is scheduled to be included in a Securitization, the Rating Agencies shall
have confirmed that the transfer to Transferee will not cause any downgrade in the ratings assigned to such certificates; 
  

 66 

 (K) If the Transferee is not a wholly-owned subsidiary of Principal, each of the Other
Properties shall likewise be transferred to such Transferee or a wholly-owned subsidiary of the new Principal pursuant to the provisions of the Other Loan Agreements; and 
  
 (L) All requisite approvals from all applicable Governmental Authorities and Persons required in connection
with such Transfer shall have been obtained. 
  
 (f) Notwithstanding anything to the contrary contained in this Section 5.2.10, Lender’s consent shall not be required for the financing of Personal Property and Equipment (“Financing Leases”) owned or to be
purchased by the applicable Borrower that is used in connection with the operation of the Property, provided Lender has received prior written notification of such Borrower’s intent to finance such Personal Property and/or Equipment, and
provided, further, that (i) any such financing is subject to commercially prudent terms and conditions and at a market rate of interest, (ii) the Personal Property and/or Equipment financed is readily replaceable without material
interference or interruption to the operation of the Property as required pursuant to the provisions of this Agreement and the Mortgage and the other Loan Documents, (iii) the aggregate amount of annual debt service or lease payments under such
Financing Leases is at all times less than $100,000.00 per annum, (iv) the documentation for the Financing Leases shall, among other things, provide that Lender shall be given written notice of a default thereunder and Lender shall be provided with
a reasonable opportunity to cure such defaults and (v) the Financing Leases do not create a Lien on the Property other than the Personal Property and/or Equipment financed. 
  
 5.2.11 Intentionally Omitted. 
  
 5.2.12 Franchise Provisions. 
  
 (a) Lender acknowledges and agrees that, as of the Closing Date, (i) Borrower is indirectly owned in whole
by Wyndham; (ii) the Property is operated as a “Wyndham” or “Summerfield Suites” hotel and is not subject to a franchise agreement or other agreement in connection with such operation other than the Management Agreement. Borrower
shall obtain the approval of Lender, which approval shall not be unreasonably withheld or delayed by Lender, before entering into any franchise agreement (the “Franchise Agreement”) with any franchisor (the
“Franchisor”) that provides for, or permits, the operation of the Property under such Franchisor’s brand or “flag”. Any Franchise Agreement must include, among other things, rights in the Franchisor’s reservation
system and a term of not less than the remaining term of the Loan. Borrower shall deliver to Lender any such Franchise Agreement for Lender’s review and approval. 
  
 (b) If Borrower shall enter into any Franchise Agreement, Lender shall receive within thirty (30) days
following the execution of such Franchise Agreement a comfort letter from the Franchisor, in which Franchisor shall agree (i) that Lender shall have the right, but not the obligation, to cure any defaults under the Franchise Agreement, (ii) to give
Lender written notice of, and a reasonable time to cure, any default of Borrower under the Franchise Agreement; (iii) not to assert against Lender any defaults which by their nature are personal to 

  

 67 

 
Borrower and are not curable by Lender; (iv) to allow Lender to change managers of the Property; (v) that, if Lender or its affiliate shall acquire title to
the Property, Lender or its affiliate shall have an option to succeed to the interest of Borrower under the Franchise Agreement (or to be granted a new Franchise Agreement on the same terms as the Franchise Agreement) without payment of any fees to
Franchisor (other than nominal, processing fees); (vi) that the Franchise Agreement will remain in effect during any foreclosure proceedings by Lender provided Lender cures all monetary defaults under the Franchise Agreement; (vii) not to modify,
cancel, surrender or otherwise terminate the Franchise Agreement during the Term without the consent of Lender; and (viii) that if Lender or its Affiliate succeeds to Borrower’s interest under the Franchise Agreement, Lender may assign its
rights therein to any entity which acquires the Property from Lender or its Affiliate (subject to Franchisor’s reasonable approval). The foregoing to the contrary notwithstanding, Lender will not unreasonably withhold approval of
Franchisor’s standard form of “comfort letter”. 
  
 (c) Borrower shall not, and Borrower shall not permit any Affiliate to, modify, cancel, surrender or otherwise terminate the Franchise Agreement during the Term without the consent of Lender, such consent not to be
unreasonably withheld or delayed; provided that, in connection with a cancellation, surrender or termination, such Franchise Agreement shall be replaced with a substitute franchise agreement reasonably approved by Lender or such other
arrangement for the operation of the Property, reasonably approved by Lender. Borrower shall promptly deliver to Lender copies of any notices of default sent or received by or on behalf of Borrower or any of its Affiliates under the Franchise
Agreement. 
  
 (d) Borrower shall at all times
that the Debt is outstanding cause the hotel located on the Property to be operated as (i) a “Wyndham” or a “Summerfield Suites” hotel (or in the name of any successor entity), or (ii) a hotel franchise of a first class,
reputable hotel franchise reasonably acceptable to Lender pursuant to a franchise agreement and management agreement reasonably acceptable to Lender. 
  
 (e) Borrower shall: 
  

	 	(i)	promptly perform and/or observe in all material respects all of the covenants and agreements required to be performed and observed by it under the Franchise Agreement and do all
things necessary to preserve and to keep unimpaired its material rights thereunder; 

  

	 	(ii)	promptly notify Lender of any default under the Franchise Agreement of which it is aware; 

  

	 	(iii)	promptly deliver to Lender a copy of each financial statement, business plan, capital expenditures plan, notice, report and estimate received by it under the Franchise Agreement;

  

	 	(iv)	promptly enforce the performance and observance in all material respects of all of the covenants and agreements required to be performed and/or observed by the franchisor under the
Franchise Agreement; and 

  

 68 

	 	(v)	exercise all rights of renewals or extension of the Franchise Agreement (and Borrower hereby appoints Lender as its attorney-in-fact to exercise such options in the name of and on
behalf of Borrower, which power of attorney shall be irrevocable and shall be deemed to be coupled with an interest). 

  
 ARTICLE 6 
  
 INSURANCE; CASUALTY; CONDEMNATION; REQUIRED REPAIRS 
  
 Section 6.1 Insurance.  
  
 (a) Borrower shall obtain and maintain, or cause to be maintained, insurance for Borrower and the Property providing at least the
following coverages: 
  

	 	(i)	 comprehensive all risk insurance on the Improvements and the Personal Property, including contingent liability from Operation of Building Laws, Demolition Costs and
Increased Cost of Construction Endorsements, in each case (A) in an amount equal to one hundred percent (100%) of the “Full Replacement Cost,” which for purposes of this Agreement shall mean actual replacement value (exclusive of costs of
excavations, foundations, underground utilities and footings) with a waiver of depreciation, but the amount shall in no event be less than the Outstanding Principal Balance; (B) containing an agreed amount endorsement with respect to the
Improvements and Personal Property waiving all co-insurance provisions; (C) for all such insurance coverage, providing for no deductible in excess of One Hundred Thousand and No/100 Dollars ($100,000); and (D) containing an “Ordinance or Law
Coverage” or “Enforcement” endorsement if any of the Improvements or the use of the Property shall at any time constitute legal non-conforming structures or uses. In addition, Borrower shall obtain: (x) if any portion of the
Improvements is currently or at any time in the future located in a federally designated “special flood hazard area”, flood hazard insurance in an amount equal to the lesser of (1) the Outstanding Principal Balance or (2) the maximum
amount of such insurance available under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended or such greater amount as Lender shall require;
(y) earthquake insurance in amounts and in form and substance satisfactory to Lender in the event the Property is located in an area with a high degree of seismic activity and (z) coastal windstorm insurance in amounts and in form and substance
satisfactory to Lender (and with deductibles of 3% of the insured value) in the event the Property is located in any coastal region, provided that the insurance pursuant 

  

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to clauses (x), (y) and (z) hereof shall be on terms consistent with the comprehensive all risk insurance policy required under this subsection (i).
Notwithstanding the foregoing, if the insurance coverage required herein is maintained by Wyndham through a blanket policy of insurance and the deductible for such insurance coverage is greater than $100,000.00, Borrower may satisfy the deductible
requirements herein by delivering to Lender a Letter of Credit in an amount equal to the difference between such deductible, as the same may be adjusted during the term of this Loan, as extended, and $100,000.00, and Lender shall, in the event of a
casualty, apply such security from time to time if requested to do so by Borrower to pay for any Restoration or, if an Event of Default occurs, such Letter of Credit shall constitute additional collateral for the Loan and Lender may apply such sums
as otherwise provided in this Agreement. 

  

	 	(ii)	commercial general liability insurance, including a broad form comprehensive general liability endorsement and coverages against claims for personal injury, bodily injury, death or
property damage occurring upon, in or about the Property, such insurance (A) to be on the so-called “occurrence” form with a combined limit of not less than Two Million and No/100 Dollars ($2,000,000) in the aggregate and One Million and
No/100 Dollars ($1,000,000) per occurrence (and, if on a blanket policy, containing an “Aggregate Per Location” endorsement); (B) to continue at not less than the aforesaid limit until required to be changed by Lender in writing by reason
of changed economic conditions making such protection inadequate; and (C) to cover at least the following hazards: (1) premises and operations; (2) products and completed operations on an “if any” basis; (3) independent contractors; (4)
blanket contractual liability for all legal contracts; and (5) contractual liability covering the indemnities contained in Article 8 of the Mortgage to the extent the same is available; 

  

	 	(iii)	 rental loss and/or business income interruption insurance (A) with loss payable to Lender; (B) covering all risks required to be covered by the insurance provided
for in subsection (i) above; (C) containing an extended period of indemnity endorsement which provides that after the physical loss to the Improvements and Personal Property has been repaired, the continued loss of income will be insured until such
income either returns to the same level it was at prior to the loss, or the expiration of twelve (12) months from the date that the Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that the
policy may expire prior to the end of such period; and (D) in an amount equal to one hundred percent (100%) of the projected Gross Income from Operations for a period of 

  

 70 

	 	 
eighteen (18) months from the date of such Casualty (assuming such Casualty had not occurred) and notwithstanding that the policy may expire at the end of
such period. The amount of such business income insurance shall be determined prior to the date hereof and at least once each year thereafter based on Borrower’s reasonable estimate of the Gross Income from Operations for the succeeding
eighteen (18) month period. Nothing set forth in this Agreement shall be deemed to relieve Borrower of its obligations to pay the obligations secured by the Loan Documents on the respective dates of payment provided for in the Note and the other
Loan Documents except to the extent such amounts are actually paid out of the proceeds of such business income insurance; 

  

	 	(iv)	at all times during which structural construction, repairs or alterations are being made with respect to the Improvements, and only if the Property coverage form does not otherwise
apply, (A) owner’s contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the above mentioned commercial general liability insurance policy; and (B) the insurance provided for in
subsection (i) above written in a so-called builder’s risk completed value form (1) on a non-reporting basis, (2) against all risks insured against pursuant to subsection (i) above, (3) including permission to occupy the Property, and (4) with
an agreed amount endorsement waiving co-insurance provisions; 

  

	 	(v)	if the Property includes commercial property, worker’s compensation insurance with respect to any employees of Borrower, as required by any Governmental Authority or Legal
Requirement; 

  

	 	(vi)	comprehensive boiler and machinery insurance, if applicable, in amounts as shall be reasonably required by Lender on terms consistent with the commercial property insurance policy
required under subsection (i) above; 

  

	 	(vii)	umbrella liability insurance in an amount not less than Twenty Million and No/100 Dollars ($20,000,000.00) per occurrence on terms consistent with the commercial general liability
insurance policy required under subsection (ii) above; 

  

	 	(viii)	motor vehicle liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits per occurrence, including umbrella coverage, of
One Million and No/100 Dollars ($1,000,000.00); 

  

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	 	(ix)	if the Property is or becomes a legal “non-conforming” use, ordinance or law coverage and insurance coverage to compensate for the cost of demolition or rebuilding of the
undamaged portion of the Property along with any reduced value and the increased cost of construction in amounts as requested by Lender; 

  

	 	(x)	at all times during the term of the Loan, the commercial property and business income insurance required under Sections 6.1(a)(i) and (iii) above shall cover perils of
foreign terrorism and acts of foreign terrorism and Borrower shall maintain commercial property and business income insurance for loss resulting from perils and acts of foreign terrorism on terms (including amounts) reasonably acceptable to Lender
for so long as such coverage is (A) commercially available and (B) provided that such insurance does not exceed $100,000.00 in the aggregate for the Property and the Other Properties. If the cost of such terrorism insurance exceeds $100,000.00 in
the aggregate for the Property and the Other Properties, Borrower shall obtain the maximum amount of acceptable insurance possible for an amount equal to $100,000.00 in the aggregate for the Property and the Other Properties; and

  

	 	(xi)	upon sixty (60) days’ notice, such other reasonable insurance and in such reasonable amounts as Lender from time to time may reasonably request against such other insurable
hazards which at the time are commonly insured against for properties similar to the Property located in or around the region in which the Property is located. 

  
 (b) All insurance provided for in Section 6.1(a) shall be obtained under valid and enforceable
policies (collectively, the “Policies” or in the singular, the “Policy”), and shall be subject to the approval of Lender as to insurance companies, amounts, deductibles, loss payees and insureds. The Policies shall
be issued by financially sound and responsible insurance companies authorized to do business in the State and having a claims paying ability rating of “A” or better. The Policies described in Section 6.1(a) (other than those
strictly limited to liability protection) shall designate Lender as loss payee. Not less than ten (10) days prior to the expiration dates of the Policies theretofore furnished to Lender, certificates of insurance evidencing the Policies accompanied
by evidence satisfactory to Lender of payment of the premiums due thereunder (the “Insurance Premiums”), shall be delivered by Borrower to Lender. 
  
 (c) Any blanket insurance Policy shall specifically allocate to the Property the amount of coverage from
time to time required hereunder and shall otherwise provide the same protection as would a separate Policy insuring only the Property in compliance with the provisions of Section 6.1(a). 
  
 (d) All Policies provided for or contemplated by Section
6.1(a), except for the Policy referenced in Section 6.1(a)(v), shall name Borrower as the insured and Lender (and its 

  

 72 

 
affiliates) as the additional insured, as its interests may appear, and in the case of property damage, boiler and machinery, flood and earthquake insurance,
shall contain a so-called New York standard non-contributing mortgagee clause in favor of Lender providing that the loss thereunder shall be payable to Lender. 
  

(e) All Policies provided for in Section 6.1 shall contain clauses or endorsements to the effect that: 
  

	 	(i)	no act or negligence of Borrower, or anyone acting for Borrower, or of any tenant or other occupant, or failure to comply with the provisions of any Policy, which might otherwise
result in a forfeiture of the insurance or any part thereof, shall in any way affect the validity or enforceability of the insurance insofar as Lender is concerned; 

  

	 	(ii)	the Policies shall not be materially changed (other than to increase the coverage provided thereby) or canceled without at least thirty (30) days’ notice (or ten (10)
days’ notice with respect to non-payment) to Lender and any other party named therein as an additional insured; 

  

	 	(iii)	the issuers thereof shall give notice to Lender if the Policies have not been renewed fifteen (15) days prior to its expiration; and 

  

	 	(iv)	Lender shall not be liable for any Insurance Premiums thereon or subject to any assessments thereunder. 

  
 (f) If at any time Lender is not in receipt of written evidence that all Policies are in full force and
effect, Lender shall give notice (which notice may be oral) thereof to Borrower and Borrower shall within two (2) Business Days of such notice, deliver such written evidence as Lender shall reasonably require that all policies are in full force and
effect. If Borrower does not provide Lender with such evidence that all Policies are in full force and effect within two (2) Business Days of Lender’s notice, Lender shall have the right, without further notice to Borrower, to take such action
as Lender deems necessary to protect its interest in the Property, including, without limitation, the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate. All premiums incurred by Lender in connection with such
action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to Lender upon demand and, until paid, shall be secured by the Mortgage and shall bear interest at the Default Rate. 
  
 Section 6.2 Casualty . If the Property shall be damaged or destroyed,
in whole or in part, by fire or other casualty (a “Casualty”), Borrower shall (a) give prompt notice of such damage to Lender, and (b) promptly commence and diligently prosecute the completion of the Restoration so that the Property
resembles, as nearly as possible, the condition the Property was in immediately prior to such Casualty, with such alterations as may be reasonably approved by Lender and otherwise in accordance with Section 6.4. Borrower shall pay all costs
of such Restoration whether or not such costs are covered by insurance. Lender may, but shall not be 

  

 73 

 
obligated to make proof of loss if not made promptly by Borrower. In addition, Lender may approve (not to be unreasonably withheld or delayed) any settlement
with any insurance companies with respect to any Casualty in which the Net Proceeds or the costs of completing the Restoration are equal to or greater than Five Hundred Thousand and No/100 Dollars ($500,000.00) and Borrower shall deliver to Lender
all instruments required by Lender to permit such participation. 
  
 Section 6.3 Condemnation. Borrower shall promptly give Lender notice of the actual or threatened commencement of any proceeding in respect of Condemnation and shall deliver to Lender copies of any and all papers served in connection
with such proceedings. Lender may participate in any such proceedings, and Borrower shall from time to time deliver to Lender all instruments requested by Lender to permit such participation. Borrower shall, at its expense, diligently prosecute any
such proceedings, and shall consult with Lender, its attorneys and experts, and cooperate with them in the carrying on or defense of any such proceedings. Notwithstanding any taking by any public or quasi-public authority through Condemnation or
otherwise (including, but not limited to, any transfer made in lieu of or in anticipation of the exercise of such taking), Borrower shall continue to perform the Obligations at the time and in the manner provided in this Agreement and the other Loan
Documents and the Outstanding Principal Balance shall not be reduced until any Award shall have been actually received and applied by Lender, after the deduction of expenses of collection, to the reduction or discharge of the Obligations. Lender
shall not be limited to the interest paid on the Award by the applicable Governmental Authority but shall be entitled to receive out of the Award interest at the rate or rates provided herein or in the Note. If the Property or any portion thereof is
taken by a Governmental Authority, Borrower shall promptly commence and diligently prosecute Restoration and otherwise comply with the provisions of Section 6.4. If the Property is sold, through foreclosure or otherwise, prior to the receipt
by Lender of the Award, Lender shall have the right, whether or not a deficiency judgment on the Note shall have been sought, recovered or denied, to receive the Award, or a portion thereof sufficient to pay the Debt.  
  
 Section 6.4 Restoration. The following provisions shall apply in
connection with the Restoration: 
  
 (a) If the
Net Proceeds shall be less than Five Hundred Thousand and No/100 Dollars ($500,000.00) and the costs of completing the Restoration shall be less than Five Hundred Thousand and No/100 Dollars ($500,000.00), the Net Proceeds will be disbursed by
Lender to Borrower upon receipt, provided that all of the conditions set forth in Section 6.4(b)(i) are met and Borrower delivers to Lender a written undertaking to expeditiously commence and to satisfactorily complete with due
diligence the Restoration in accordance with the terms of this Agreement. 
  
 (b) If the Net Proceeds are equal to or greater than Five Hundred Thousand and No/100 Dollars ($500,000.00) or the costs of completing the Restoration is equal to or greater than One Million and No/100 Dollars
($1,000,000.00), the Net Proceeds will be held by Lender and Lender shall make the Net Proceeds available for the Restoration in accordance with the provisions of this Section 6.4. The term “Net Proceeds” for purposes of this
Section 6.4 shall mean: (i) the net amount of all insurance proceeds received by Lender pursuant to Section 6.1 (a)(i), (iv), (vi), (ix) and (x) as a result of such damage or destruction, after deduction

  

 74 

 
of its reasonable costs and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Insurance
Proceeds”), or (ii) the net amount of the Award, after deduction of Lender’s reasonable costs and expenses (including, but not limited to, reasonable counsel costs and fees), if any, in collecting same (“Condemnation
Proceeds”), whichever the case may be. 
  

	 	(i)	The Net Proceeds shall be made available to Borrower for Restoration upon the approval of Lender in its sole discretion that the following conditions are met:

  
 (A) no Event of Default shall
have occurred and be continuing; 
  
 (B) (1) in
the event the Net Proceeds are Insurance Proceeds, less than twenty-five percent (25%) of the total floor area of the Improvements on the Property has been damaged, destroyed or rendered unusable as a result of such Casualty, or (2) in the event the
Net Proceeds are Condemnation Proceeds, less than ten percent (10%) of the land constituting the Property is taken, and such land is located along the perimeter or periphery of the Property, and no material portion of the Improvements is located on
such land; 
  
 (C) Borrower shall commence
Restoration as soon as reasonably practicable (but in no event later than sixty (60) days after such Casualty or Condemnation, whichever the case may be, occurs) and shall diligently pursue the same to satisfactory completion (it being agreed that
the development of Building Plans shall constitute commencement of the Restoration); 
  
 (D) Lender shall be satisfied that any operating deficits, including all scheduled payments of principal and interest under the Note,
which will be incurred with respect to the Property as a result of the occurrence of any such Casualty or Condemnation, whichever the case may be, will be covered out of (1) the Net Proceeds, (2) the insurance coverage referred to in Section
6.1(a)(iii), if applicable, or (3) by other funds of Borrower; 
  
 (E) Lender shall be satisfied that Restoration will be completed on or before the earliest to occur of (1) three (3) months prior to the Maturity Date as the same is extended pursuant to Section 2.7 hereof (and
if necessary to satisfy this requirement, the period set forth in Section 2.7 during which Borrower may exercise any option to extend the term of the Loan shall be extended to permit Borrower to exercise such extension option, but in no event
more than twelve (12) months prior to the then Maturity Date, (2) such time as may be required under applicable Legal Requirements, or (3) the expiration of the insurance coverage referred to in Section 6.1(a)(iii) unless Borrower has
deposited with Lender prior to the commencement of the Restoration sums sufficient after the expiration of such insurance to (x) operate the Property in a manner consistent with the manner in which the Property was operated immediately prior to such
Casualty or 

  

 75 

 
Condemnation and (y) pay all sums as they become due under the Loan in a timely manner; 
  
 (F) the Property and the use thereof after Restoration will be in compliance with and permitted under all
applicable Legal Requirements; 
  
 (G)
Restoration shall be done and completed by Borrower in an expeditious and diligent fashion and in compliance with all applicable Legal Requirements; 
  
 (H) such Casualty or Condemnation, as applicable, does not result in the loss of access to the Property or the related Improvements;

  
 (I) upon completion of the Restoration, the
projected Net Operating Income for the following twelve (12) month period as reasonably estimated by Lender, shall be sufficient to achieve a Debt Service Coverage Ratio of at least 1.50 to 1.00 (and for purposes of this clause (I) only, the Debt
Service Coverage Ratio shall be calculated at the interest rate computed in accordance with the provisions of this Agreement at a deemed annual rate of 8.20%); 
  

(J) Borrower shall deliver, or cause to be delivered, to Lender a signed detailed budget approved in writing by Borrower’s
architect or engineer stating the entire cost of completing the Restoration; and 
  
 (K) the Net Proceeds together with any cash or cash equivalent deposited by Borrower with Lender are sufficient in Lender’s
reasonable discretion to cover the cost of Restoration. 
  

	 	(ii)	 The Net Proceeds shall be paid directly to Lender for deposit in an interest-bearing account and, until disbursed in accordance with the provisions of this
Section 6.4(b), shall constitute additional security for the Debt and the Other Obligations. The Net Proceeds shall be disbursed by Lender to, or as directed by, Borrower from time to time during the course of Restoration, upon receipt of
evidence satisfactory to Lender that (A) all materials installed and work and labor performed (except to the extent that they are to be paid for out of the requested disbursement) in connection with Restoration have been paid for in full, and (B)
there exist no notices of pendency, stop orders, mechanic’s or materialman’s liens or notices of intention to file same, or any other liens or encumbrances of any nature whatsoever on the Property which have not either been fully bonded to
the satisfaction of Lender and discharged of record or in the alternative fully insured to the satisfaction of Lender by the Title Company; provided, however, Lender shall disburse to, or as directed by, Borrower up to ten percent
(10%) of the Net Proceeds received by Lender to fund deposits to contractors, subcontractors and/or materialmen when 

  

 76 

	 	 
necessary, to secure timely performance of the Restoration, due to the occurrence of a catastrophic event such as a hurricane or earthquake, upon receipt of
evidence satisfactory to Lender that such deposits are required to be paid. Notwithstanding the foregoing, Lender shall have no obligation under this paragraph unless and until Net Proceeds have been received by it and Borrower has complied with the
provisions of the preceding sentence. 

  

	 	(iii)	All plans and specifications required in connection with the Restoration shall be subject to prior review and reasonable acceptance in all respects by Lender and by an independent
consulting engineer selected by Lender (the “Casualty Consultant”). In connection with the delivery of the plans and specifications to Lender and/or Casualty Consultant by Borrower, if Borrower marks such delivery with a legend
marked in not less than fourteen (14) point bold face type, underlined, in all capital letters “ATTACHED PLANS AND SPECIFICATIONS DEEMED APPROVED IF NO RESPONSE WITHIN FIFTEEN (15) BUSINESS DAYS”, and Lender and/or the Casualty Consultant
fails to respond to the delivery of such plans and specifications within such fifteen (15) Business Day period, Lender shall be deemed to have approved such Plans and Specifications. Lender shall have the use of the plans and specifications and all
permits, licenses and approvals required or obtained in connection with the Restoration. The identity of the contractors, subcontractors and materialmen engaged in the Restoration, as well as the contracts under which they have been engaged, shall
be subject to prior review and reasonable acceptance by Lender and the Casualty Consultant. All reasonable costs and expenses incurred by Lender in connection with making the Net Proceeds available for Restoration including, without limitation,
reasonable counsel fees and disbursements and the reasonable Casualty Consultant’s fees, shall be paid by Borrower. 

  

	 	(iv)	 In no event shall Lender be obligated to make disbursements of the Net Proceeds in excess of an amount equal to the costs actually incurred from time to time for
work in place as part of the Restoration, as certified by the Casualty Consultant, minus the Casualty Retainage. The term “Casualty Retainage” shall mean, as to each contractor, subcontractor or materialman engaged in the
Restoration, an amount equal to ten percent (10%) of the costs actually incurred for work in place as part of the Restoration, as certified by the Casualty Consultant, until Restoration has been fifty percent (50%) completed, at which point no
additional Retainage shall be required (i.e., upon completion of the Restoration the Retainage shall equal 5% of the cost of the work). 

  

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The Casualty Retainage shall in no event, and notwithstanding anything to the contrary set forth above in this Section 6.4(b), be less than the amount
actually held back by Borrower from contractors, subcontractors and materialmen engaged in the Restoration. The Casualty Retainage shall not be released until the Casualty Consultant certifies to Lender that Restoration has been completed in
accordance with the provisions of this Section 6.4(b) and that all approvals necessary for the re-occupancy and use of the Property have been obtained from all appropriate Governmental Authorities, and Lender receives evidence reasonably
satisfactory to Lender that the costs of Restoration have been paid in full or will be paid in full out of the Casualty Retainage; provided, however, that Lender will release the portion of the Casualty Retainage being held with
respect to any contractor, subcontractor or materialman engaged in the Restoration as of the date upon which the Casualty Consultant certifies to Lender that the contractor, subcontractor or materialman has satisfactorily completed all work and has
supplied all materials in accordance with the provisions of the contractor’s, subcontractor’s or materialman’s contract, the contractor, subcontractor or materialman delivers the lien waivers and evidence of payment in full of all
sums due to the contractor, subcontractor or materialman as may be reasonably requested by Lender or by the Title Company, and, provided that the State in which the Property is located is a jurisdiction in which the priority of the Lien of the
Mortgage will not be affected by intervening mechanic’s liens, the Lender receives an update to the Title Insurance Policy indicating the continued priority of the Lien of the Mortgage. If required by Lender, the release of any such portion of
the Casualty Retainage shall be approved by the surety company, if any, which has issued a payment or performance bond with respect to the contractor, subcontractor or materialman. 

  

	 	(v)	Lender shall not be obligated to make disbursements of the Net Proceeds more frequently than once every calendar month. 

  

	 	(vi)	 If at any time the Net Proceeds or the undisbursed balance thereof shall not, in the opinion of Lender in consultation with the Casualty Consultant, be sufficient
to pay in full the balance of the costs which are reasonably estimated by the Casualty Consultant to be incurred in connection with the completion of the Restoration, Borrower shall deposit the deficiency (the “Net Proceeds
Deficiency”) with Lender before any further disbursement of the Net Proceeds shall be made. The Net Proceeds Deficiency deposited with Lender shall be held by Lender and shall be disbursed for costs actually incurred in connection with the
Restoration on the same conditions applicable to the disbursement 

  

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of the Net Proceeds, and until so disbursed pursuant to this Section 6.4(b) shall constitute additional security for the Debt and the Other
Obligations. 

  

	 	(vii)	The excess, if any, of the Net Proceeds and the remaining balance, if any, of the Net Proceeds Deficiency deposited with Lender after the Casualty Consultant certifies to Lender
that Restoration has been completed in accordance with the provisions of this Section 6.4(b), and the receipt by Lender of evidence satisfactory to Lender that all costs incurred in connection with the Restoration have been paid in full,
shall be remitted by Lender to Borrower, provided no Event of Default shall have occurred and shall be continuing. 

  
 (c) All Net Proceeds not required (i) to be made available for Restoration, or (ii) to be returned to Borrower as excess Net Proceeds
pursuant to Section 6.4(b)(vii) may be retained and applied by Lender in accordance with Section 2.4.2 hereof toward the payment of the Outstanding Principal Balance whether or not then due and payable in such order, priority and
proportions as Lender in its sole discretion shall deem proper, or, in the sole discretion of Lender, the same may be paid, either in whole or in part, to Borrower for such purposes as Lender shall approve, in its sole discretion. 
  
 (d) In the event of foreclosure of the Mortgage, or other
transfer of title to the Property in extinguishment in whole or in part of the Debt, all right, title and interest of Borrower in and to the Policies that are not blanket Policies then in force concerning the Property and all proceeds payable
thereunder shall thereupon vest in the purchaser at such foreclosure or Lender or other transferee in the event of such other transfer of title. 
  
 (e) Intentionally Omitted. 
  
 ARTICLE 7 
  
 RESERVE FUNDS 
  
 Section 7.1 Required Repair Funds. 
  
 7.1.1 Deposits. Borrower shall perform the repairs at the Property as more particularly set forth on Schedule II hereto (such repairs hereinafter collectively referred to as “Required
Repairs”). Borrower shall complete the Required Repairs on or before the required deadline for each repair as set forth on Schedule II hereto, as the same may be extended due to Unavoidable Delays. It shall be an Event of Default under this
Agreement if (a) Borrower does not complete the Required Repairs by the required deadline for each repair as set forth on Schedule II (as the same may be extended by Unavoidable Delays), or (b) Borrower does not satisfy each condition contained in
Section 7.1.2 hereof. Upon the occurrence of such an Event of Default, Lender, at its option, may withdraw all Required Repair Funds from the Required Repair Account and Lender may apply such funds either to completion of the Required
Repairs. Lender’s right to withdraw and apply Required Repair Funds shall be in addition to all other 

  

 79 

 
rights and remedies provided to Lender under this Agreement and the other Loan Documents. On the Closing Date, Borrower shall deposit with Lender the amount
set forth on such Schedule II hereto to perform the Required Repairs multiplied by one hundred twenty-five percent (125%). Amounts so deposited with Lender shall be held by Lender in accordance with Section 7.5 hereof. Amounts so deposited
shall hereinafter be referred to as Borrower’s “Required Repair Funds” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “Required Repair Account.” 

 
 7.1.2 Release of Required Repair Funds. (a) Lender
shall disburse to Borrower the Required Repair Funds from the Required Repair Account from time to time, but not more frequently than once in any thirty (30) day period, upon satisfaction by Borrower of each of the following conditions with respect
to each disbursement: (i) Borrower shall submit a written request for payment to Lender at least fifteen (15) days prior to the date on which Borrower requests such payment be made, which request specifies the Required Repairs to be paid, (ii) on
the date such request is received by Lender and on the date such payment is to be made, no Release Default or Event of Default shall exist and remain uncured, (iii) Lender shall have received an Officer’s Certificate (A) stating that all
Required Repairs to be funded by the requested disbursement have been completed in a good and workmanlike manner and in accordance with all applicable federal, state and local laws, rules and regulations, such Officer’s Certificate to be
accompanied by a copy of any license, permit or other approval by any Governmental Authority required to commence and/or complete the Required Repairs, (B) identifying each Person that supplied materials or labor in connection with the Required
Repairs to be funded by the requested disbursement, and (C) stating that each such Person has been paid in full or will be paid in full upon such disbursement for work completed and/or materials furnished to date, and, if the request for
disbursement exceeds $100,000 such Officer’s Certificate to be accompanied by lien waivers or other evidence of payment satisfactory to Lender and the Title Company, (iv) Lender shall have received a title search indicating that the Property is
free from all liens, claims and other encumbrances not previously approved by Lender, (v) Lender shall have received such other evidence as Lender shall reasonably request that the Required Repairs to be funded by the requested disbursement have
been completed and are paid for or will be paid upon such disbursement to Borrower. Lender shall not be required to make disbursements from the Required Repair Account unless such requested disbursement is in an amount greater than $5,000 (or a
lesser amount if the total amount in the Required Repair Account is less than $5,000, in which case only one disbursement of the amount remaining in the account shall be made) and such disbursement shall be made only upon satisfaction of each
condition contained in this Section 7.1.2. 
  
 (b) Nothing in this Section 7.1.2 shall (i) make Lender responsible for performing or completing any Required Repairs; (ii) require Lender to expend funds in addition to the Required Repairs Funds to complete any Required Repairs;
(iii) obligate Lender to proceed with any Required Repairs; or (iv) obligate Lender to demand from Borrower additional sums to complete any Required Repairs. 
  

(c) Borrower shall permit Lender and Lender’s agents and representatives (including Lender’s engineer, architect or
inspector) or third parties to enter onto the Property during normal business hours (subject to the rights of tenants under their Leases) to inspect the progress of any Required Repairs and all materials being used in connection therewith and to

  

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examine all plans and shop drawings relating to such Required Repairs, such inspections to be made with minimal interference with the conduct of
Tenant’s business. Borrower shall cause all contractors and subcontractors to cooperate with Lender or Lender’s representatives or such other Persons described above in connection with inspections described in this Section 7.1.2(c).

  
 (d) If a disbursement will exceed
$100,000.00, Lender may require an inspection of the Property at Borrower’s expense prior to making a disbursement of Required Repairs Funds in order to verify completion of the Required Repairs for which reimbursement is sought. Lender may
require that such inspection be conducted by an appropriate independent qualified professional selected by Lender and may require a certificate of completion by an independent qualified professional architect acceptable to Lender prior to the
disbursement of Required Repairs Funds. Borrower shall pay the reasonable expense of the inspection as required hereunder, whether such inspection is conducted by Lender or by an independent qualified professional architect. 
  
 (e) In addition to any insurance required under the Loan
Documents, Borrower shall provide or cause to be provided worker’s compensation insurance, builder’s risk, and public liability insurance and other insurance to the extent required under applicable law in connection with the Required
Repairs. All such policies shall be in form and amount reasonably satisfactory to Lender. 
  
 7.1.3 Balance in Required Repair Account. The insufficiency of any balance in the Required Repair Account shall not relieve
Borrower from its obligation to perform the Required Repairs in a good and workmanlike manner and in accordance with all Legal Requirements. 
  
 Section 7.2 Tax and Insurance Escrow Funds. On the date hereof, Borrower shall deposit with Lender $288,821.12 on account of the Taxes next coming
due and $167,865.73 on account of the Insurance Premiums next coming due. Additionally, Borrower shall pay to Lender on each Payment Date (a) one-twelfth of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months
in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (b) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the
coverage afforded by the Policies upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies (the foregoing amounts deposited
with Lender on the date hereof and in clauses (a) and (b) above are hereinafter called the “Tax and Insurance Escrow Funds”). The Tax and Insurance Escrow Funds and the payment of the monthly Debt Service, shall be added together
and shall be paid as an aggregate sum by Borrower to Lender. Lender will apply the Tax and Insurance Escrow Funds to payments of Taxes and Insurance Premiums required to be made by Borrower pursuant to Section 5.1.2 hereof and under the
Mortgage. In making any payment relating to the Tax and Insurance Escrow Funds, Lender may do so according to any bill, statement or estimate procured from the appropriate public office (with respect to Taxes) or insurer or agent (with respect to
Insurance Premiums), without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof. If the amount of the Tax and Insurance Escrow Funds shall
exceed the amounts due for Taxes and Insurance Premiums pursuant to Section 5.1.2 hereof, Lender shall, 

  

 81 

 
following written request by Borrower, promptly return any excess to Borrower. Any amount remaining in the Tax and Insurance Escrow Funds after the Debt has
been paid in full shall be returned to Borrower. In allocating such excess, Lender may deal with the Person shown on the records of Lender to be the owner of the Property. If at any time Lender reasonably determines that the Tax and Insurance Escrow
Funds are not or will not be sufficient to pay Taxes and Insurance Premiums by the dates set forth in (a) and (b) above, Lender shall notify Borrower of such determination and Borrower shall increase its monthly payments to Lender by the amount that
Lender estimates is sufficient to make up the deficiency at least thirty (30) days prior to the due date of the Taxes and/or thirty (30) days prior to expiration of the Policies, as the case may be. 
  
 Section 7.3 FF&E Reserve. 
  
 7.3.1 FF&E Reserve Funds. Borrower shall deposit
with Lender on the Closing Date one-twelfth of the amount of the Approved FF&E Budget (the “FF&E Reserve Deposit”). The amount of the FF&E Reserve Deposit shall be recalculated annually during the term of the Loan, as of
January 1 of each year (or as soon thereafter as Gross Income from Operations for the preceding year shall be determined to Lender’s reasonable satisfaction) such that the FF&E Reserve Deposit shall be equal to four (4%) percent of the
prior year’s Gross Income from Operations divided by twelve (12). Amounts so deposited shall hereinafter be referred to as Borrower’s “FF&E Reserve Funds” and the account in which such amounts are held shall
hereinafter be referred to as Borrower’s “FF&E Reserve Account.” Within thirty (30) days following the end of each calendar quarter, Borrower shall provide to Lender a preliminary report with respect to the expenditures
made by or on behalf of Borrower with respect to the Property for FF&E during such calendar quarter. In the event that the lesser of (a) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual FF&E Budget
is not less than four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, exceeds the actual expenditures made by Borrower for FF&E for such
quarter, Borrower shall deposit an amount equal to any such difference in the FF&E Reserve Account to be held as FF&E Reserve Funds to be disbursed pursuant to the provisions of this Section 7.3. Notwithstanding the foregoing, the
amount of any such deposit required to be made by Borrower shall be reduced by the amount of any actual expenditure made by Borrower for any FF&E completed prior to the calendar quarter in which such FF&E was scheduled to be made pursuant to
the Approved Annual FF&E Budget. If the actual expenditures made by Borrower for FF&E exceeds the lesser of (x) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual FF&E Budget is not less than
four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, Lender shall reimburse Borrower for such excess to the extent that funds are available from
the FF&E Reserve Account within fifteen (15) days from Borrower’s request. To the extent there are not sufficient funds in the FF&E Reserve Account to reimburse Borrower for any excess actual expenditures during such calendar quarter,
such excess expenditures shall be added to the actual expenditures for the next calendar quarter in the determination of any amounts required to be deposited in the FF&E Reserve Account for such calendar quarter. In lieu of making any required
deposits to the FF&E Reserve Account (other than the FF&E Reserve Deposit), Borrower may deliver to Lender a Letter of Credit in an amount equal to the amount that is required to be deposited into the FF&E Reserve Account. 

  

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Such Letter of Credit shall constitute additional collateral for the Loan and Lender shall have the right to draw down upon such Letter of Credit and apply
the proceeds thereof for the purposes set forth in the Approved FF&E Budget if Borrower fails to do so within a reasonable time after notice from Lender, or Lender may apply such sums as otherwise provided in this Agreement following an Event of
Default. All earnings or interest on the FF&E Reserve Funds shall be and become part of the FF&E Reserve Funds and shall be disbursed as provided in this Section 7.3. 
  
 7.3.2 Disbursements from FF&E Reserve Account. Lender shall make disbursements from the FF&E
Reserve Account as provided in Section 7.3.1 following request by Borrower, and, if required by Lender for disbursements in excess of $100,000.00 for a single item, lien waivers and releases from all parties furnishing materials and/or
services in connection with the requested payment. Lender may require an inspection of the Property at Borrower’s expense prior to making a monthly disbursement in order to verify completion of replacements and repairs of items in excess of
$100,000.00 for which reimbursement is sought. 
  
 7.3.3 Balance in the FF&E Account. The insufficiency of any balance in the FF&E Reserve Account shall not relieve Borrower from its obligation to fulfill all preservation and maintenance covenants in the Loan Documents.

  
 Section 7.4 Intentionally Omitted. 
  
 Section 7.5 Debt Service Reserve. 
  
 7.5.1 Debt Service Reserve Funds. Borrower shall
deposit with Lender on the Closing Date the sum of $246,000.00 (the “Debt Service Reserve”). Amounts so deposited shall hereinafter be referred to as the “Debt Service Reserve Funds” and the account in which such
amounts are held shall hereinafter be referred to as the “Debt Service Reserve Account.” The Debt Service Reserve will be available for use by Borrower in the event that Net Cash Flow from the Property for any month shall be less
than Debt Service for such month. In lieu of making any required deposits to the Debt Service Reserve Account, Borrower may deliver to Lender a Letter of Credit in an amount equal to the amount that is required to be deposited into the Debt Service
Reserve Account. All earnings or interest on the Debt Service Reserve Fund shall be and become part of such Debt Service Reserve Fund and shall be disbursed as provided in this Section 7.5. 
  
 In the event Net Cash Flow equals or exceeds $8,000,000.00
for the preceding twelve (12) consecutive month period, the Debt Service Reserve Funds will be released to Borrower following Borrower’s written request therefor. 
  
 7.5.2 Disbursements from Debt Service Reserve Account. Provided no Release Default or Event of
Default exists, Lender shall make disbursements from the Debt Service Reserve Account as requested by Borrower to the extent such funds are available, no more frequently than once in any thirty (30) day period in the event that Net Cash Flow is less
than Debt Service for such month. 
  
 7.5.3
Balance in the Debt Service Account. The insufficiency of any balance in the Debt Service Reserve Account shall not relieve Borrower from its obligation to pay the Monthly Interest Payment when due hereunder. 
  

 83 

 Section 7.6 Reserve Funds, Generally. 
  
 (a) Borrower grants to Lender a first-priority perfected
security interest in all of the Reserve Funds and any and all monies now or hereafter deposited in each Reserve Fund as additional security for the Obligations. Until expended or applied in accordance herewith, the Reserve Funds shall constitute
additional security for payment of the Obligations. Upon the occurrence of an Event of Default, Lender may, in addition to any and all other rights and remedies available to Lender, apply any sums then present in any or all of the Reserve Funds to
the reduction of the Outstanding Principal Balance in any order in its sole discretion. The Reserve Funds shall not constitute trust funds and may be commingled with other monies held by Lender. 
  
 (b) Borrower shall not, without obtaining the prior consent
of Lender, further pledge, assign or grant any security interest in any Reserve Fund or the monies deposited therein or permit any lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements, except those
naming Lender as the secured party, to be filed with respect thereto. 
  
 (c) The Reserve Funds shall be held in an Eligible Account and shall bear interest at a money market rate selected by Lender. All interest or other earnings on a Reserve Fund shall be added to and become a part of
such Reserve Fund and shall be disbursed in the same manner as other monies deposited in such Reserve Fund. Borrower shall have the right to direct Lender to invest sums on deposit in the Eligible Account in Permitted Investments
provided (a) such investments are then regularly offered by Lender for accounts of this size, category and type, (b) such investments are permitted by applicable federal, state and local rules, regulations and laws, (c) the maturity date of
the Permitted Investment is not later than the date on which the applicable Reserve Funds are required for payment of an obligation for which such Reserve Fund was created, and (d) no Event of Default shall have occurred and be continuing. Borrower
shall be responsible for payment of any federal, state or local income or other tax applicable to the interest or income earned on the Reserve Funds. No other investments of the sums on deposit in the Reserve Funds shall be permitted except as set
forth in this Section 7.5. Borrower shall bear all reasonable costs associated with the investment of the sums in the account in Permitted Investments. Such costs shall be deducted from the income or earnings on such investment, if any, and
to the extent such income or earnings shall not be sufficient to pay such costs, such costs shall be paid by Borrower promptly on demand by Lender. Lender shall have no liability for the rate of return earned or losses incurred on the investment of
the sums in Permitted Investments. 
  
 (d)
Borrower shall indemnify Lender and hold Lender harmless from and against any and all actions, suits, claims, demands, liabilities, losses, damages, obligations and costs and expenses (including litigation costs and reasonable attorneys fees and
expenses) arising from or in any way connected with the Reserve Funds or the performance of the obligations for which the Reserve Funds were established. Borrower shall assign to Lender all rights and claims Borrower may have against all Persons
supplying labor, materials or other services which are to be paid from or secured by the Reserve Funds; provided, however, that Lender may not pursue any such right or claim unless an Event of Default has occurred and remains uncured.

  

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 (e) After payment in full of all sums evidenced by the Note and secured by the Mortgage
and release or assignment by Lender of the lien of the Mortgage, Lender shall disburse to Borrower all amounts remaining in the Reserves. 
  
 ARTICLE 8  
  
 DEFAULTS 
  
 Section 8.1 Event of Default. 
  
 (a) Each of the following events shall constitute an event of default hereunder (an “Event of Default”): 
  

	 	(i)	if any portion of the Debt is not paid when due (subject to Borrower having deposited with Lender in accordance with Section 2.6.4 sums sufficient to pay such amounts when
due); 

  

	 	(ii)	intentionally omitted; 

  

	 	(iii)	if any of the Taxes are not paid when the same are due and payable or the Other Charges are not paid prior to delinquency; 

  

	 	(iv)	if the Policies are not kept in full force and effect, or if satisfactory evidence of the insurance coverage required hereunder or any other Loan Document is not delivered to Lender
within ten (10) days of request; 

  

	 	(v)	if any Transfer is made in violation of the terms of this Agreement or any other Loan Document; 

  

	 	(vi)	if any representation or warranty made by, or on behalf of, Borrower or any other Significant Party herein or in any other Loan Document, or in any report, certificate, Financial
Statement or other instrument, agreement or document furnished to Lender shall have been false or misleading in any material respect as of the date the representation or warranty was made; 

  

	 	(vii)	if any Significant Party shall make an assignment for the benefit of creditors; 

  

	 	(viii)	 if a receiver, liquidator or trustee shall be appointed for any Significant Party, or if any Significant Party shall be adjudicated a bankrupt or insolvent, or if
any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by or against, consented to, or acquiesced in by, any Significant Party, or if any proceeding for the
dissolution or liquidation of any Significant Party shall be instituted; provided, however, if such appointment, 

  

 85 

	 	 
adjudication, petition or proceeding was involuntary and not consented to by such Significant Party, upon the same not being discharged, stayed or dismissed
within ninety (90) days; 

  

	 	(ix)	if Borrower attempts to assign its rights under this Agreement or any of the other Loan Documents or any interest herein or therein in contravention of the Loan Documents;

  

	 	(x)	if Borrower breaches any of its respective negative covenants contained in Section 5.2 or Section 5.1.11 (other than those covenants contained in Section 5.2
which are otherwise expressly provided for in this Section 8.1 hereof) and such breach is not cured after ten (10) days notice from Lender or if Borrower breaches any covenant contained in Section 4.1.30; 

  

	 	(xi)	if any of the assumptions contained in the Insolvency Opinion delivered to Lender in connection with the Loan, or in the Additional Insolvency Opinion delivered subsequent to the
closing of the Loan, is or shall become untrue in any material respect unless such matter is cured in a timely manner without any adverse consequences to the Loan or to Lender; 

  

	 	(xii)	if a material default has occurred and continues beyond any applicable cure period under the Management Agreement (or any Replacement Management Agreement) and if such default
permits the Manager thereunder to terminate or cancel the Management Agreement (or any Replacement Management Agreement) and Borrower fails to replace Manager with a Qualified Manager; 

  

	 	(xiii)	if at any time an “Event of Default” shall occur under and as defined in any one or more of the Other Borrower Loan Documents; 

  

	 	(xiv)	if at any time a default shall occur and continue beyond the expiration of applicable notice and cure periods under any Junior Lender Security Document; 

  

	 	(xv)	 if Borrower shall continue to be in Default under any of the other terms, covenants or conditions of this Agreement not specified in subsections (i) to (xii) above,
for ten (10) Business Days after notice to Borrower from Lender, in the case of any Default which can be cured by the payment of a sum of money, or for thirty (30) days after notice from Lender in the case of any other Default; provided,
however, that if such non-monetary Default is susceptible of cure but cannot reasonably be cured within such thirty (30) day period and provided further that Borrower shall have commenced to cure such Default within such thirty
(30) day 

  

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period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for such time as is reasonably
necessary for Borrower in the exercise of due diligence to cure such Default, such additional period not to exceed 180 days; 

  

	 	(xvi)	Intentionally Omitted. 

  

	 	(xvii)	if at any time Borrower shall fail to cause all Rents to be paid directly to the Property Account as provided herein and in the Cash Management Agreement and the Property Account
Agreement; or 

  

	 	(xviii)	if there shall be default under any of the other Loan Documents beyond any applicable cure periods contained in such documents, whether as to Borrower or the Property, or if any
other such event shall occur or condition shall exist, if the effect of such event or condition is to accelerate the maturity of any portion of the Debt or to permit Lender to accelerate the maturity of all or any portion of the Debt.

  
 (b) Upon the occurrence of an
Event of Default (other than an Event of Default described in clauses (vi), (vii) or (viii) above) and at any time thereafter, in addition to any other rights or remedies available to it pursuant to this Agreement and the other Loan Documents or at
law or in equity, Lender may take such action, without notice or demand, that Lender deems advisable to protect and enforce its rights against Borrower and in and to the Property, including, without limitation, declaring the Obligations to be
immediately due and payable, and Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower and the Property, including, without limitation, all rights or remedies available at law or in
equity; and upon any Event of Default described in clauses (vi), (vii) or (viii) above, the Debt and all Other Obligations of Borrower hereunder and under the other Loan Documents shall immediately and automatically become due and payable, without
notice or demand, and Borrower hereby expressly waives any such notice or demand, anything contained herein or in any other Loan Document to the contrary notwithstanding. 
  
 Section 8.2 Remedies. 
  
 (a) Upon the occurrence of an Event of Default, all or any one or more of the rights, powers, privileges and other remedies available to
Lender against Borrower under this Agreement or any of the other Loan Documents executed and delivered by, or applicable to, Borrower or at law or in equity may be exercised by Lender at any time and from time to time, whether or not all or any of
the Debt shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action for the enforcement of its rights and remedies under any of the Loan Documents. Any such actions taken by Lender
shall be cumulative and concurrent and may be pursued independently, singularly, successively, together or otherwise, at such time and in such order as Lender may determine in its sole discretion, to the fullest extent permitted by law, without
impairing or otherwise affecting the other rights and remedies of Lender permitted by law, equity or contract or as set forth herein or 

  

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in the other Loan Documents. Without limiting the generality of the foregoing, Borrower agrees that if an Event of Default is continuing (i) Lender shall not
be subject to any “one action” or “election of remedies” law or rule, and (ii) all liens and other rights, remedies or privileges provided to Lender shall remain in full force and effect until Lender has exhausted all of its
remedies against the Property and the Mortgage has been foreclosed, sold and/or otherwise realized upon in satisfaction of the Debt or the Obligations have been paid in full. 
  
 (b) Lender shall have the right from time to time to sever the Note and the other Loan Documents into one or
more separate notes, mortgages and other security documents (the “Severed Loan Documents”) in such denominations as Lender shall determine in its sole discretion for purposes of evidencing and enforcing its rights and remedies
provided hereunder. Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and such other documents as Lender shall request in order to effect the severance described in the
preceding sentence, all in form and substance reasonably satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead to make and execute all
documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue thereof; provided, however, Lender shall not make or execute any such documents under such power until
three (3) days after notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under such power. Borrower shall not be obligated to pay any costs or expenses incurred in connection with the preparation, execution,
recording or filing of the Severed Loan Documents. Further, the Severed Loan Documents shall not contain any representations, warranties or covenants not contained in the Loan Documents and any such representations and warranties contained in the
Severed Loan Documents will be given by Borrower only as of the Closing Date. 
  
 (c) Lender shall have the right from time to time to partially foreclose the Mortgage in any manner and for any amounts secured by the Mortgage then due and payable as determined by Lender in its sole discretion,
including the following circumstances: (i) in the event Borrower defaults beyond any applicable grace period in the payment of one or more scheduled payments of principal and/or interest, Lender may foreclose the Mortgage to recover such delinquent
payments, or (ii) in the event Lender elects to accelerate less than the entire Outstanding Principal Balance, Lender may foreclose the Mortgage to recover so much of the Debt as Lender may accelerate and such other sums secured by the Mortgage as
Lender may elect. Notwithstanding one or more partial foreclosures, the Property shall remain subject to the Mortgage to secure payment of sums secured by the Mortgage and not previously recovered. 
  
 (d) Any amounts recovered from the Property or any other
collateral for the Loan after an Event of Default may be applied by Lender toward the payment of any interest and/or principal of the Loan and/or any other amounts due under the Loan Documents in such order, priority and proportions as Lender in its
sole discretion shall determine. 
  
 (e) Without
limiting the generality of the foregoing or otherwise impairing or 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, Borrower agrees that if an Event of
Default has occurred and is continuing Lender shall have the right to immediately draw down in full upon any Letter of Credit delivered by, or on behalf of Borrower pursuant to the terms of this 

  

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Agreement or any of the other Loan Documents, and apply the proceeds of such draw towards the payment of any interest and/or principal of the Loan and/or any
other amounts due under the Loan Documents in such order, priority and proportions as Lender in its sole discretion shall determine. 
  
 (f) Remedies Cumulative; Waivers. The rights, powers and remedies of Lender under this Agreement shall be cumulative and not
exclusive of any other right, power or remedy which Lender may have against Borrower pursuant to this Agreement or the other Loan Documents, or existing at law or in equity or otherwise. Lender’s rights, powers and remedies may be pursued
singularly, concurrently or otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion. No delay or omission to exercise any remedy, right or power accruing upon an Event of Default shall impair any such
remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient. A waiver of one Default or Event of Default with respect to Borrower
shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any remedy, right or power consequent thereon. 
  
 ARTICLE 9 
  
 SPECIAL PROVISIONS 
  
 Section 9.1 Sale of Note and Securitization. Borrower acknowledges and agrees that Lender may sell all or any portion of the Loan and the Loan Documents, or issue one or more participations therein, or
consummate one or more private or public securitizations of rated single- or multi-class securities (the “Securities”) secured by or evidencing ownership interests in all or any portion of the Loan and the Loan Documents or a pool
of assets that include the Loan and the Loan Documents (such sales, participations and/or securitizations, collectively, a “Securitization”). At the request of Lender, and to the extent not already required to be provided by
Borrower under this Agreement, Borrower shall use reasonable efforts to provide information not in the possession of Lender or which may be reasonably required by Lender in order to satisfy the market standards to which Lender customarily adheres or
which may be reasonably required by prospective investors and/or the Rating Agencies in connection with any such Securitization including, without limitation, to: 
  
 (a) provide additional and/or updated Provided Information, together with appropriate verification and/or
consents related to the Provided Information through letters of auditors or opinions of counsel of independent attorneys reasonably acceptable to Lender and the Rating Agencies; 
  
 (b) assist in preparing descriptive materials for presentations to any or all of the Rating Agencies, and
work with, and if requested, supervise, third-party service providers engaged by Borrower, Principal and their respective affiliates to obtain, collect, and deliver information requested or required by Lender or the Rating Agencies; 
  
 (c) if required by the Rating Agencies, deliver (i) updated
opinions of counsel as to non-consolidation, due execution and enforceability with respect to the Property, Borrower, 

  

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Principal and their respective Affiliates and the Loan Documents, and (ii) revised organizational documents for Borrower, which counsel opinions and
organizational documents shall be reasonably satisfactory to Lender and the Rating Agencies; 
  
 (d) if required by any Rating Agency, use commercially reasonable efforts to deliver such additional tenant estoppel letters,
subordination agreements or other agreements from parties to agreements that affect the Property, which estoppel letters, subordination agreements or other agreements shall be reasonably satisfactory to Lender and the Rating Agencies; 
  
 (e) make such representations and warranties as of the
closing date of the Securitization with respect to the Property, Borrower, Principal and the Loan Documents as may be reasonably requested by Lender or the Rating Agencies and consistent with the facts covered by such representations and warranties
as they exist on the date thereof, including the representations and warranties made in the Loan Documents; 
  
 (f) execute such non-material amendments to the Loan Documents as may be requested by Lender or the Rating Agencies to effect the
Securitization; 
  
 (g) if requested by Lender,
review any information regarding the Property, Borrower, Principal, the Manager and the Loan which is contained in a preliminary or final private placement memorandum, prospectus, prospectus supplement (including any amendment or supplement to
either thereof), or other disclosure document to be used by Lender or any affiliate thereof; and 
  
 (h) supply to Lender such documentation, financial statements and reports concerning Borrower, Principal, Guarantor, the Loan and/or the
Property in form and substance required in order to comply with any applicable securities laws. 
  
 All reasonable third party costs and expenses incurred by Borrower or Lender in connection with Borrower’s complying with requests made under this
Section 9.1 (including, without limitation, the fees and expenses of the Rating Agencies) shall be paid by Lender. 
  
 Section 9.2 Securitization Indemnification. 
  
 (a) Borrower understands that certain of the Provided Information may be included in Disclosure Documents in connection with the
Securitization and may also be included in filings with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Securities and Exchange Act of 1934, as amended (the
“Exchange Act”), or provided or made available to investors or prospective investors in the Securities, the Rating Agencies, and service providers relating to the Securitization. In the event that the Disclosure Document is required
to be revised prior to the sale of all Securities, Borrower will cooperate with the holder of the Note in updating the Disclosure Document by providing all current information necessary to keep the Disclosure Document accurate and complete in all
material respects. 
  
 (b) The Indemnifying
Persons agree to provide, in connection with the Securitization, an indemnification agreement (i) certifying that (A) the Indemnifying Persons 

  

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have carefully examined the Disclosure Documents, including, without limitation, the sections entitled “Risk Factors,” “Special
Considerations,” “Description of the Mortgages,” “Description of the Mortgage Loans and Mortgaged Property,” “The Manager,” “The Borrower” and “Certain Legal Aspects of the Mortgage Loan,” and
(B) such sections and such other information in the Disclosure Documents (to the extent such information relates to or includes any Provided Information or any information regarding the Property, Borrower, Manager and/or the Loan) (collectively with
the Provided Information, the “Covered Disclosure Information”) do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading, (ii) jointly and severally indemnifying Lender, CSFB (whether or not it is Lender), any Affiliate of CSFB that has filed any registration statement relating to the Securitization or has acted
as the sponsor or depositor in connection with the Securitization, any Affiliate of CSFB that acts as an underwriter, placement agent or initial purchaser of Securities issued in the Securitization, any other co-underwriters, co-placement agents or
co-initial purchasers of Securities issued in the Securitization, and each of their respective officers, directors, partners, employees, representatives, agents and Affiliates and each Person or entity who controls any such Person within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Indemnified Persons”), for any losses, claims, damages, liabilities, costs or expenses (including without limitation legal fees and expenses
for enforcement of these obligations (collectively, the “Liabilities”)) to which any such Indemnified Person may become subject insofar as the Liabilities arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in the Covered Disclosure Information or arise out of or are based upon the omission or alleged omission to state in the Covered Disclosure Information a material fact required to be stated therein or
necessary in order to make the statements in the Covered Disclosure Information, in light of the circumstances under which they were made, not misleading and (iii) agreeing to reimburse each Indemnified Person for any legal or other expenses
incurred by such Indemnified Person, as they are incurred, in connection with investigating or defending the Liabilities. This indemnity agreement will be in addition to any liability which Borrower may otherwise have. Moreover, the indemnification
provided for in clauses (ii) and (iii) above shall be effective whether or not an indemnification agreement described in clause (i) above is provided. 
  
 (c) In connection with filings under the Exchange Act, the Indemnifying Persons jointly and severally agree to indemnify (i) the
Indemnified Persons for Liabilities to which any such Indemnified Person may become subject insofar as the Liabilities arise out of or are based upon any untrue statement or alleged untrue statement of any material fact in the Covered Disclosure
Information, or the omission or alleged omission to state in the Covered Disclosure Information a material fact required to be stated therein or necessary in order to make the statements in the Covered Disclosure Information, in light of the
circumstances under which they were made, not misleading and (ii) reimburse each Indemnified Person for any legal or other expenses incurred by such Indemnified Persons, as they are incurred, in connection with defending or investigating the
Liabilities. 
  
 (d) Promptly after receipt by an
Indemnified Person of notice of any claim or the commencement of any action, the Indemnified Person shall, if a claim in respect thereof is to be made against any Indemnifying Person, notify such Indemnifying Person in writing of the claim or the
commencement of that action; provided, however, that the failure to notify such 

  

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Indemnifying Person shall not relieve it from any liability which it may have under the indemnification provisions of this Section 9.2 except to the
extent that it has been materially prejudiced by such failure and, provided further that the failure to notify such Indemnifying Person shall not relieve it from any liability which it may have to an Indemnified Person otherwise than
under the provisions of this Section 9.2. If any such claim or action shall be brought against an Indemnified Person, and it shall notify any Indemnifying Person thereof, such Indemnifying Person shall be entitled to participate therein and,
to the extent that it wishes, assume the defense thereof with counsel reasonably satisfactory to the Indemnified Person. After notice from any Indemnifying Person to the Indemnified Person of its election to assume the defense of such claim or
action, such Indemnifying Person shall not be liable to the Indemnified Person for any legal or other expenses subsequently incurred by the Indemnified Person in connection with the defense thereof except as provided in the following sentence;
provided, however, if the defendants in any such action include both an Indemnifying Person, on the one hand, and one or more Indemnified Persons on the other hand, and an Indemnified Person shall have reasonably concluded that there
are any legal defenses available to it and/or other Indemnified Persons that are different or in addition to those available to the Indemnifying Person, the Indemnified Person or Persons shall have the right to select separate counsel to assert such
legal defenses and to otherwise participate in the defense of such action on behalf of such Indemnified Person or Persons. The Indemnified Person shall instruct its counsel to maintain reasonably detailed billing records for fees and disbursements
for which such Indemnified Person is seeking reimbursement hereunder and shall submit copies of such detailed billing records to substantiate that such counsel’s fees and disbursements are solely related to the defense of a claim for which the
Indemnifying Person is required hereunder to indemnify such Indemnified Person. No Indemnifying Person shall be liable for the expenses of more than one (1) such separate counsel unless any Indemnified Person shall have reasonably concluded that
there may be legal defenses available to it that are different from or additional to those available to any Indemnifying Person. 
  
 (e) Without the prior consent of CSFB (which consent shall not be unreasonably withheld), no Indemnifying Person shall settle or
compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is an actual or potential party to
such claim, action, suit or proceeding) unless the Indemnifying Person shall have given CSFB reasonable prior notice thereof and shall have obtained an unconditional release of each Indemnified Person hereunder from all liability arising out of such
claim, action, suit or proceeding. As long as an Indemnifying Person has complied with its obligations to defend and indemnify hereunder, such Indemnifying Person shall not be liable for any settlement made by any Indemnified Person without the
consent of such Indemnifying Person (which consent shall not be unreasonably withheld). 
  
 (f) The Indemnifying Persons agree that if any indemnification or reimbursement sought pursuant to this Section 9.2 is finally
judicially determined to be unavailable for any reason or is insufficient to hold any Indemnified Person harmless (with respect only to the Liabilities that are the subject of this Section 9.2), then the Indemnifying Persons, on the one hand,
and such Indemnified Person, on the other hand, shall contribute to the Liabilities for which such indemnification or reimbursement is held unavailable or is insufficient: (x) in such proportion as is appropriate to reflect the relative benefits to
the Indemnifying 

  

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Persons, on the one hand, and such Indemnified Person, on the other hand, from the transactions to which such indemnification or reimbursement relates; or
(y) if the allocation provided by clause (x) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (x) but also the relative faults of the Indemnifying Persons,
on the one hand, and all Indemnified Persons, on the other hand, as well as any other equitable considerations. Notwithstanding the provisions of this Section 9.2, (A) no party found liable for a fraudulent misrepresentation shall be entitled
to contribution from any other party who is not also found liable for such fraudulent misrepresentation, and (B) the Indemnifying Persons agree that in no event shall the amount to be contributed by the Indemnified Persons collectively pursuant to
this paragraph exceed the amount of the fees (by underwriting discount or otherwise) actually received by the Indemnified Persons in connection with the closing of the Loan or the Securitization. 
  
 (g) The Indemnifying Persons agree that the indemnification,
contribution and reimbursement obligations set forth in this Section 9.2 shall apply whether or not any Indemnified Person is a formal party to any lawsuits, claims or other proceedings. The Indemnifying Persons further agree that the
Indemnified Persons are intended third party beneficiaries under this Section 9.2. 
  
 (h) The rights, liabilities and obligations of the Indemnified Persons and the Indemnifying Persons under this Section 9.2 shall
survive the termination of this Agreement and the satisfaction and discharge of the Obligations. 
  
 (i) Notwithstanding anything to the contrary contained herein, Borrower shall have no obligation to act as depositor with respect to the
Loan or an issuer or registrant with respect to the Securities issued in any Securitization. 
  
 Section 9.3 [RESERVED] 
  
 Section
9.4 Exculpation. Subject to the qualifications below, Lender shall not enforce the liability and obligation of Borrower to perform and observe the obligations contained in the Note, this Agreement, the Mortgage or the other Loan Documents by
any action or proceeding wherein a money judgment shall be sought against Borrower, except that Lender may bring a foreclosure action, an action for specific performance or any other appropriate action or proceeding to enable Lender to enforce and
realize upon its interest under the Note, this Agreement, the Mortgage, the other Loan Documents, or in the Property, the Rents, or any other collateral given to Lender pursuant to the Loan Documents; provided, however, that, except as
specifically provided herein, any judgment in any such action or proceeding shall be enforceable against Borrower only to the extent of Borrower’s interest in the Property, in the Rents and in any other collateral given to Lender, and Lender,
by accepting the Note, this Agreement, the Mortgage and the other Loan Documents, agrees that it shall not sue for, seek or demand any deficiency judgment against Borrower in any such action or proceeding under, or by reason of, or in connection
with, the Note, this Agreement, the Mortgage or the other Loan Documents. The provisions of this Section shall not, however, (a) constitute a waiver, release or impairment of any obligation evidenced or secured by any of the Loan Documents; (b)
impair the right of Lender to name Borrower as a party defendant in any action or suit for foreclosure and sale under the Mortgage or the Second Mortgage; (c) affect the validity or enforceability of any 

  

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guaranty or indemnity, including without limitation, the Guaranty, the Borrower Guaranty and/or the Environmental Indemnity, made in connection with the Loan
or any of the rights and remedies of Lender thereunder; (d) impair the right of Lender to obtain the appointment of a receiver; (e) impair the enforcement of the Assignment of Leases; (f) constitute a prohibition against Lender to seek a deficiency
judgment against Borrower in order to fully realize the security granted by the Mortgage and/or the other Loan Documents or to commence any other appropriate action or proceeding in order for Lender to exercise its remedies against the Property; or
(g) constitute a waiver of the right of Lender to enforce the liability and obligation of Borrower, by money judgment or otherwise, to the extent of any actual loss, damage, cost, expense, liability, claim or other obligation incurred by Lender
(including reasonable attorneys’ fees and costs reasonably incurred) arising out of or in connection with the following: 
  

	 	(i)	fraud or intentional misrepresentation by any Significant Party in connection with the Loan, including by reason of any claim under RICO; 

  

	 	(ii)	the gross negligence or willful misconduct of Borrower; 

  

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

  

	 	(iv)	the intentional removal or destruction of any portion of the Property by Borrower or any party acting on behalf of Borrower after an Event of Default; 

  

	 	(v)	any Legal Requirement (including RICO) mandating the forfeiture by Borrower of the Property, or any portion thereof, because of the conduct or purported conduct of criminal activity
by Borrower or any Significant Party in connection therewith; 

  

	 	(vi)	the misappropriation or conversion by or on behalf of Borrower of (A) any Insurance Proceeds paid by reason of any Casualty, (B) any Awards received in connection with a
Condemnation, (C) any Rents following an Event of Default, or (D) any Rents paid more than one (1) month in advance; 

  

	 	(vii)	failure to pay, when funds are available from the Property or Reserves, charges for labor or materials or other charges which become Liens on of the Property which were prior to the
Lien of the Mortgage; 

  

	 	(viii)	 any security deposits, advance deposits or any other deposits collected with respect to the Property which are not delivered to Lender upon a foreclosure of the
Property or action in lieu thereof, except to the extent any such security deposits were applied in 

  

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accordance with the terms and conditions of any of the Leases prior to the occurrence of the Event of Default that gave rise to such foreclosure or action in
lieu thereof; and 

  

	 	(ix)	failure of Borrower to direct the payment of or, pay any, Rents or other Receipts to the Property Account as required by the Loan Documents; and 

  

	 	(x)	the failure of Borrower to apply monies disbursed to it from the Cash Management Account (or any sub-account thereof) for the purpose which such disbursement is made.

  
 Notwithstanding anything to the contrary in this
Agreement, the Note or any of the Loan Documents, (A) Lender shall not be deemed to have waived any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a claim for the full
amount of the Debt secured by the Mortgage or to require that all collateral shall continue to secure all of the Obligations in accordance with the Loan Documents, and (B) the Debt shall be fully recourse to Borrower (i) in the event of: (a)
Borrower filing a voluntary petition under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (b) Borrower, or any Person acting on behalf of Borrower, soliciting or causing to be solicited petitioning creditors for any
involuntary petition against Borrower from any Person; (c) Borrower filing an answer consenting to or otherwise acquiescing in or joining in any involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other
Federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited petitioning creditors for any involuntary petition from any Person; (d) Borrower consenting to or acquiescing in or joining in an application for the appointment
of a custodian, receiver, trustee, or examiner for Borrower or any portion of the Property; (e) Borrower making an assignment for the benefit of creditors, or admitting, in writing or in any legal proceeding, its insolvency or inability to pay its
debts as they become due; (ii) if Borrower fails to maintain its status as a Single Purpose Entity; (iii) if Borrower fails to obtain Lender’s prior consent to any Indebtedness or voluntary Lien encumbering the Property as required by this
Agreement or the Mortgage; (iv) if any Restricted Party fails to obtain Lender’s prior consent to any Transfer as required by this Agreement or the Mortgage; or (v) an act or omission of Borrower, Principal, Guarantor or any Affiliate of
Borrower, Principal, or Guarantor which hinders, delays or interferes with Lender’s enforcement of its rights hereunder or the realization of the Collateral, including the assertion by Borrower, Principal, Guarantor or such Affiliate of
defenses or counterclaims. 
  
 Further, if any Significant Party
fails to provide financial information in accordance with Section 5.1.11 hereof within a reasonable time following request by Lender therefor, Borrower shall pay an amount equal to $10,000 in order to defray the expense incurred by Lender as
a result of such delay and to compensate Lender for any losses suffered as a result of such delay. 
  
 Section 9.5 Matters Concerning Manager. If (a) the Manager shall become bankrupt or insolvent or (b) a material default occurs under the Management
Agreement beyond any applicable grace and cure periods, Borrower shall, at the request of Lender, terminate the Management Agreement and replace the Manager with a Qualified Manager pursuant to a 

  

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Replacement Management Agreement, it being understood and agreed that the management fee for such replacement manager shall not exceed then prevailing market
rates. 
  
 Section 9.6 Servicer. At the option of Lender,
the Loan may be serviced by a servicer/trustee (the “Servicer”) selected by Lender and Lender may delegate all or any portion of its responsibilities under this Agreement and the other Loan Documents to the Servicer pursuant to a
servicing agreement (the “Servicing Agreement”) between Lender and Servicer. Borrower shall not be responsible for any set-up fees or any other costs relating to or arising under the Servicing Agreement; including the monthly
servicing fee due to the Servicer under the Servicing Agreement. 
  
 Section 9.7 Severance of Loan Documents. Lender shall have the right, at any time (whether prior to or after any sale or participation of all or any portion of the Loan), to modify the Loan in order to create one or more senior and
subordinate notes (i.e., an A/B or A/B/C structure) and/or one or more additional components of the Note or Notes, reduce the number of components of the Note or Notes, revise the interest rate for each component, reallocate the principal
balances of the Notes and/or the components, increase or decrease the monthly debt service payments for each component or eliminate the component structure and/or the multiple note structure of the Loan (including the elimination of the related
allocations of principal and interest payments), provided that the Outstanding Principal Balance of all components immediately after the effective date of such modification equals the Outstanding Principal Balance immediately prior to such
modification and the weighted average of the interest rates for all components immediately after the effective date of such modification equals the interest rate of the original Note immediately prior to such modification and modify the Cash
Management Agreement with respect to the newly created components such that the pricing and marketability of the Securities and the size of each class of Securities and the rating assigned to each such class by the Rating Agencies shall provide the
most favorable rating levels and achieve the optimum rating levels for the Loan. Lender shall have the right to modify the Note and/or Notes and any components in accordance with this Section 9.7 and, provided that such modification shall
comply with the terms of this Section 9.7, it shall become immediately effective. If requested by Lender, Borrower shall promptly execute an amendment to the Loan Documents to evidence any such modification. In the event Borrower fails to
deliver said amendment to Lender within fifteen (15) Business Days after request, Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney-in-fact (with full power of substitution), coupled with an interest, in its
name and stead to make and execute all documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue thereof; provided, that, Lender shall not make or execute any
such documents under such power until three (3) Business Days after notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under such power. Lender shall be obligated to pay any reasonable costs or expenses
incurred by Lender or Borrower in connection with the preparation, execution, recording or filing of the Severed Loan Documents. Except as may be required in connection with a securitization, the Severed Loan Documents shall not contain any
representations, warranties or covenants not contained in the Loan Documents. 
  
 9.8 Mezzanine Loan Option. Lender shall have the right, on or before the date which is one (1) year following the Closing Date, to divide the Loan into two parts (the “Mezzanine Option”): a
mortgage loan (the “Mortgage Loan”) and a mezzanine loan (the “Mezzanine 

  

 96 

 
Loan”). In such event, Borrower agrees to cause the formation of the Mezzanine Borrower. The principal amount of the Mortgage Loan plus the
principal amount of the Mezzanine Loan shall equal the outstanding principal balance of the Loan immediately prior to the creation of the Mortgage Loan and the Mezzanine Loan. In effectuating the foregoing, Mezzanine Lender will make a loan to
Mezzanine Borrower; Mezzanine Borrower will contribute the amount of the Mezzanine Loan to Borrower (in its capacity as Borrower under the Mortgage Loan, “Mortgage Borrower”) and Mortgage Borrower will apply the contribution to pay
down the Loan to its Mortgage Loan amount. The Mortgage Loan and the Mezzanine Loan will be on the same terms and subject to the same conditions set forth in this Agreement, the Note, the Mortgage and the other Loan Documents except as follows:

  
 (a) Lender (in its capacity as the lender
under the Mortgage Loan, the “Mortgage Lender”) shall have the right to establish different interest rates and debt service payments for the Mortgage Loan and the Mezzanine Loan and to require the payment of the Mortgage Loan and
the Mezzanine Loan in such order of priority as may be designated by Lender; provided, that (i) the total loan amounts for the Mortgage Loan and the Mezzanine Loan shall equal the amount of the Loan immediately prior to the creation of the Mortgage
Loan and the Mezzanine Loan, (ii) the weighted average interest rate of the Mortgage Loan and the Mezzanine Loan shall on the date created equal the interest rate which was applicable to the Loan immediately prior to creation of a Mortgage Loan and
a Mezzanine Loan and (iii) prior to the occurrence of an Event of Default, the debt service payments on the Mortgage Loan note and the Mezzanine Loan note shall equal the debt service payment which are due under the Loan as if no Mezzanine Loan had
been created. 
  
 (b) Mezzanine Borrower shall be
a special purpose, bankruptcy remote entity pursuant to applicable Rating Agency criteria and shall own directly or indirectly one hundred percent (100%) of Mortgage Borrower. The security for the Mezzanine Loan shall be a pledge of one hundred
percent (100%) of the direct and indirect ownership interests in Mortgage Borrower. 
  
 (c) Mezzanine Borrower and Mortgage Borrower shall cooperate with all reasonable requests of Lender in order to convert the Loan into a
Mortgage Loan and a Mezzanine Loan and shall execute and deliver such documents as shall reasonably be required by Lender and any Rating Agency in connection therewith, including, without limitation, the delivery of non-consolidation opinions and
the modification of organizational documents and loan documents. In the event Mortgage Borrower and/or Mezzanine Borrower fail to execute and deliver such documents to Lender within five (5) Business Days following such request by Lender, Mortgage
Borrower and/or Mezzanine Borrower, as applicable, hereby absolutely and irrevocably appoint Lender as their true and lawful attorney, coupled with an interest, in their name and stead to make and execute all documents necessary or desirable to
effect such transactions, Mortgage Borrower and/or Mezzanine Borrower, as applicable, ratifying all that such attorney shall do by virtue thereof. Lender shall pay all costs and expenses in connection with the creation of the Mortgage Loan and the
Mezzanine Loan and all requirements relating thereto, including, without limitation, the cost of any UCC lien insurance policy. 
  
 (d) It shall be an Event of Default under this Agreement, the Note, the Mortgage and the other Loan Documents if Borrower or Mezzanine
Borrower fails to comply with any of the 

  

 97 

 
terms, covenants or conditions of this Section 9.8 after expiration of ten (10) Business Days after notice thereof. 
  
 ARTICLE 10 
  
 MISCELLANEOUS 
  
 Section 10.1 Survival. This Agreement and all covenants, agreements,
representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the making by Lender of the Loan and the execution and delivery to Lender of the Note, and shall continue in full force and effect so long as
all or any of the Obligations are outstanding and unpaid unless a longer period is expressly set forth herein or in the other Loan Documents. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to
include the legal representatives, successors and assigns of such party. All covenants, promises and agreements in this Agreement, by or on behalf of Borrower, shall inure to the benefit of the legal representatives, successors and assigns of
Lender. 
  
 Section 10.2 Lender’s Discretion. Whenever
pursuant to this Agreement, Lender exercises any right given to it to approve or disapprove, or any arrangement or term is to be satisfactory to Lender, the decision of Lender to approve or disapprove or to decide whether arrangements or terms are
satisfactory or not satisfactory shall (except as is otherwise specifically herein provided) be in the sole discretion of Lender and shall be final and conclusive. Whenever this Agreement expressly provides that Lender may not withhold its consent
or its approval of an arrangement or term, such provisions shall also be deemed to prohibit Lender from delaying or conditioning such consent or approval. 
  
 Section 10.3 Governing Law 
  
 (a) THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW
YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL
RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT
AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED 

  

 98 

 
ACCORDING TO THE LAW OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE,
THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT, THE NOTE AND/OR THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 
  
 (b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN
DOCUMENTS MAY AT LENDER’S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR
HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND
APPOINT: 
  
 CT CORPORATION SYSTEM 
 111 EIGHTH AVENUE 
 NEW YORK, NEW YORK
10011 
  
 AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF
SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND NOTICE OF SAID SERVICE MAILED OR
DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY
CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND
ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR. 
  

 99 

 (c) BORROWER DOES HEREBY DESIGNATE AND APPOINT: 
  
 CT CORPORATION SYSTEM 
 1200 SOUTH PINE ISLAND ROAD 
 PLANTATION, FLORIDA 33324 
  
 AS ITS AUTHORIZED AGENT TO ACCEPT
AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN FLORIDA, AND BORROWER AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN
NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF FLORIDA. 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 WITH AN OFFICE IN FLORIDA (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS
THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN FLORIDA OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR. 
  
 Section 10.4 Modification, Waiver in Writing. No modification,
amendment, extension, discharge, termination or waiver of any provision of this Agreement, or of the Note, or of any other Loan Document, nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in
a writing signed by the party against whom enforcement is sought, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or
demand on Borrower, shall entitle Borrower to any other or future notice or demand in the same, similar or other circumstances. 
  
 Section 10.5 Delay Not a Waiver. Neither any failure nor any delay on the part of Lender in insisting upon strict performance of any term,
condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under the Note or under any other Loan Document, or under any other instrument given as security therefor, shall operate as or constitute a waiver
thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by way of limitation, by accepting payment after the due date of any
amount payable under this Agreement, the Note or any other Loan Document, Lender shall not be deemed to have waived any right either to require prompt payment when due of all other amounts due under this Agreement, the Note or the other Loan
Documents, or to declare a default for failure to effect prompt payment of any such other amount. 
  
 Section 10.6 Notices. All notices, consents, approvals and requests required or permitted hereunder or under any other Loan Document (each, a
“Notice”), shall be given in writing and shall be effective for all purposes if hand delivered or sent by (a) certified or 

  

 100 

 
registered United States mail, postage prepaid, return receipt requested or (b) expedited prepaid delivery service, either commercial or United States Postal
Service, with proof of attempted delivery, and by telecopier (with answer back acknowledged), addressed as follows (or at such other address and Person as shall be designated from time to time by any party hereto, as the case may be, in a Notice to
the other parties hereto in the manner provided for in this Section 10.6): 
  

			
	If to Lender:	  	 Column Financial, Inc.
 11 Madison Avenue

New York, New York 10010
 Attention: Robert Russell
 Facsimile No. (212) 734-5230

		
	with a copy to:	  	 Column Financial, Inc.
 11 Madison Avenue

New York, New York 10010
 Legal and Compliance Department
 Attention: Tessa Peters
 Facsimile No. (917) 326-7805

		
	with a copy to:	  	 Greenberg Traurig, LLP
 200 Park Avenue
 New York, New York 10166
 Attention: Alan Pleskow, Esq.
 Facsimile No. (212) 801-9200

		
	If to Borrower:	  	 c/o Wyndham International, Inc.
 1950 Stemmons
Freeway, Suite 6001
 Dallas, Texas 75207
 Attention: Philip
Gosch, Esq.
 Facsimile No. (214) 863-1669

		
	With a copy to:	  	 Sidley Austin Brown & Wood LLP
 787 Seventh
Avenue
 New York, New York 10019
 Attention: Alan Weil,
Esq.
 Facsimile No. (212) 839-5599

  
 A Notice shall be deemed to have been
given: in the case of hand delivery or delivery by a reputable overnight courier, at the time of delivery; in the case of registered or certified mail, when delivered or the first attempted delivery on a Business Day; in the case of expedited
prepaid delivery and telecopy, upon the first attempted delivery on a Business Day; or in the case of telecopy, upon sender’s receipt of a machine-generated confirmation of successful transmission after advice by telephone to recipient that a
telecopy Notice is forthcoming. 
  
 Section 10.7 Trial by
Jury. BORROWER AND LENDER EACH HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH 

  

 101 

 
RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER
OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER AND LENDER AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH OF BORROWER AND LENDER
IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER. 
  
 Section 10.8 Headings. The Article and/or Section headings and the Table of Contents in this Agreement are included herein for convenience of
reference only and shall not constitute a part of this Agreement for any other purpose. 
  
 Section 10.9 Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall
be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
  
 Section 10.10 Preferences. Lender shall have the continuing and
exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the Obligations of Borrower hereunder. To the extent Borrower makes a payment or payments to Lender, which payment or proceeds or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of
such payment or proceeds received, the Obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Lender. 
  
 Section 10.11 Waiver of Notice. Borrower hereby expressly waives, and
shall not be entitled to, any notices of any nature whatsoever from Lender except with respect to matters for which this Agreement or the other Loan Documents specifically and expressly provide for the giving of notice by Lender to Borrower and
except with respect to matters for which Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. 
  
 Section 10.12 Remedies of Borrower. In the event that a claim or adjudication is made that Lender or its agents have acted unreasonably or
unreasonably delayed acting in any case where by law or under this Agreement or the other Loan Documents, Lender or such agent, as the case may be, has an obligation to act reasonably or promptly, Borrower agrees that neither Lender nor its agents
shall be liable for any monetary damages, and Borrower’s sole remedies shall be limited to commencing an action seeking injunctive relief or declaratory judgment. The parties hereto agree that any action or proceeding to determine whether
Lender has acted reasonably shall be determined by an action seeking declaratory judgment. 
  

 102 

 Section 10.13 Expenses; Indemnity. 
  
 (a) Borrower covenants and agrees to pay or, if Borrower fails to pay, to reimburse, Lender within five (5)
days after receipt of notice from Lender for all reasonable third-party, out-of-pocket costs and expenses (including reasonable attorneys’ fees and disbursements) incurred by Lender in connection with (i) the preparation, negotiation, execution
and delivery of this Agreement and the other Loan Documents and the consummation of the transactions contemplated hereby and thereby and all the costs of furnishing all opinions by counsel for Borrower (including without limitation any opinions
requested by Lender as to any legal matters arising under this Agreement or the other Loan Documents with respect to the Property); (ii) Borrower’s ongoing performance of and compliance with Borrower’s respective agreements and covenants
contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date, including, without limitation, confirming compliance with environmental and insurance requirements; (iii) Lender’s
ongoing performance and compliance with all agreements and conditions contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date; (iv) the negotiation, preparation, execution,
delivery and administration of any consents, amendments, waivers or other modifications to this Agreement and the other Loan Documents and any other documents or matters requested by Lender; (v) securing Borrower’s compliance with any requests
made pursuant to the provisions of this Agreement; (vi) the filing and recording fees and expenses, title insurance and reasonable fees and expenses of counsel for providing to Lender all required legal opinions, and other similar expenses incurred
in creating and perfecting the Liens in favor of Lender pursuant to this Agreement and the other Loan Documents; (vii) enforcing or preserving any rights, either in response to third party claims or in prosecuting or defending any action or
proceeding or other litigation, in each case against, under or affecting Borrower, this Agreement, the other Loan Documents, the Property, or any other security given for the Loan; and (viii) enforcing any obligations of or collecting any payments
due from Borrower under this Agreement, the other Loan Documents, or with respect to the Property or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out”
or of any insolvency or bankruptcy proceedings; provided, however, that Borrower shall not be liable for the payment of any such costs and expenses to the extent the same arise by reason of the gross negligence, illegal acts, fraud or
willful misconduct of Lender. Any cost and expenses due and payable to Lender may be paid, at Lender’s option, from any amounts in the Property Account. 
  

(b) Borrower shall indemnify, defend and hold harmless Lender from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including, without limitation, the reasonable fees and disbursements of counsel for Lender in connection with any
investigative, administrative or judicial proceeding commenced or threatened, whether or not Lender shall be designated a party thereto), that may be imposed on, incurred by, or asserted against Lender in any manner relating to or arising out of (i)
any breach by Borrower of its obligations under, or any material misrepresentation by Borrower contained in, this Agreement or the other Loan Documents, or (ii) the use or intended use of the proceeds of the Loan (collectively, the
“Indemnified Liabilities”); provided, however, that Borrower shall not have any obligation to Lender hereunder to the extent that such Indemnified Liabilities arise from the gross negligence, illegal acts, fraud or willful
misconduct of Lender. To the extent that the undertaking to indemnify, defend and hold harmless set forth in the preceding sentence may be unenforceable because it violates any law or public policy, Borrower shall pay the maximum 

  

 103 

 
portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Lender.

  
 (c) Borrower covenants and agrees to pay for
or, if Borrower fails to pay, to reimburse Lender for, any fees and expenses incurred by any Rating Agency in connection with any Rating Agency review of the Loan, the Loan Documents or any transaction contemplated thereby up to a maximum sum of
$20,000.00 or any consent, approval, waiver or confirmation obtained from such Rating Agency pursuant to the terms and conditions of this Agreement or any other Loan Document and Lender shall be entitled to require payment of such fees and expenses
as a condition precedent to the obtaining of any such consent, approval, waiver or confirmation. 
  
 Section 10.14 Schedules Incorporated. The Schedules annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect
as if set forth in the body hereof. 
  
 Section 10.15 Offsets,
Counterclaims and Defenses. Any assignee of Lender’s interest in and to this Agreement, the Note and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such documents
which Borrower may otherwise have against any assignor of such documents, and no such unrelated counterclaim or defense shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon such documents and any
such right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrower. 
  
 Section 10.16 No Joint Venture or Partnership; No Third Party Beneficiaries. 
  
 (a) Borrower and Lender intend that the relationships created hereunder and under the other Loan Documents
be solely that of borrower and lender. Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Property other
than that of mortgagee, beneficiary or lender. 
  
 (b) This Agreement and the other Loan Documents are solely for the benefit of Lender and Borrower and nothing contained in this Agreement or the other Loan Documents shall be deemed to confer upon anyone other than Lender and Borrower any
right to insist upon or to enforce the performance or observance of any of the obligations contained herein or therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit of
Lender and no other Person shall have standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make the Loan (or any disbursement of Reserve Funds) in the absence of
strict compliance with any or all thereof and no other Person shall under any circumstances be deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender’s sole
discretion, Lender deems it advisable or desirable to do so. 
  

 104 

 Section 10.17 Publicity. Except as may be otherwise required by the requirements of the New York
Stock Exchange and/or any other securities laws, all news releases, publicity or advertising by 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 Lender, CSFB, or any of their Affiliates shall be subject to the prior approval of Lender. 
  
 Section 10.18 Waiver of Marshalling of Assets. To the fullest extent permitted by law, Borrower, for itself and its successors and assigns, waives
all rights to a marshalling of the assets of Borrower, Borrower’s partners and others with interests in Borrower, and of the Property, or to a sale in inverse order of alienation in the event of foreclosure of the Mortgage, and agrees not to
assert any right under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right
of Lender under the Loan Documents to a sale of the Property for the collection of the Debt and/or the Other Borrower Obligations without any prior or different resort for collection or of the right of Lender to the payment of the Debt and/or the
Other Borrower Obligations out of the net proceeds of the Property in preference to every other claimant whatsoever. 
  
 Section 10.19 Waiver of Offsets/Defenses/Counterclaims. Borrower hereby waives the right to assert a counterclaim, other than a compulsory
counterclaim, in any action or proceeding brought against it by Lender or its agents or otherwise to offset any Obligations under 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. 
  
 Section 10.20 Conflict; Construction of Documents; Reliance. In the event of any conflict between the provisions of this Agreement, any of the
other Loan Documents, the provisions of this Agreement shall control. The parties hereto acknowledge that they were represented by competent counsel in connection with the negotiation, drafting and execution of the Loan Documents and that such Loan
Documents shall not be subject to the principle of construing their meaning against the party which drafted same. Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering into the
Loan without relying in any manner on any statements, representations or recommendations of Lender or any parent, subsidiary or Affiliate of Lender. Lender shall not be subject to any limitation whatsoever in the exercise of any rights or remedies
available to it under any of the Loan Documents or any other agreements or instruments which govern the Loan or the Other Loans by virtue of the ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest any of them may
acquire in Borrower, and Borrower hereby irrevocably waives the right to raise any defense or take any action on the basis of the foregoing with respect to Lender’s exercise of any such rights or remedies. Borrower acknowledges that Lender
engages in the business of real estate financings and other real estate transactions and investments which may be viewed as adverse to or competitive with the business of Borrower or its Affiliates. 
  
 Section 10.21 Brokers and Financial Advisors. Borrower hereby
represents that it has dealt with no financial advisors, brokers, underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement. Borrower hereby agrees to 

  

 105 

 
indemnify, defend and hold Lender harmless from and against any and all claims, liabilities, costs and expenses of any kind (including Lender’s
attorneys’ fees and expenses) in any way relating to or arising from a claim by any Person that such Person acted on behalf of Borrower or Lender in connection with the transactions contemplated herein. The provisions of this Section
10.21 shall survive the expiration and termination of this Agreement and the payment of the Debt. 
  
 Section 10.22 Prior Agreements. This Agreement and the other Loan Documents contain the entire agreement of the parties hereto and thereto in
respect of the transactions contemplated hereby and thereby, and all prior agreements among or between such parties, whether oral or written, between Borrower and Lender are superseded by the terms of this Agreement and the other Loan Documents.

  

 106 

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

							
	 PAH-TAMPA, L.P.,
 a Delaware limited
partnership

		
	 By:
	 	PAH-T, LLC, a Delaware limited liability company, its General Partner
			
	 	 	 By:
	 	PAH-T Manager Inc.,
	 	 	 	 	 its Managing Member

				
	 	 	 	 	 By:
	 	 /s/ MICHAEL HIGA

	 	 	 	 	 	 	 Name: Michael Higa
 Title: Vice President

  

			
	 COLUMN FINANCIAL, INC.
 a Delaware corporation

		
	By:	 	 /s/ JEFFREY A. ALTABEF

	 	 	 Name: Jeffrey A. Altabef
 Title: Vice President

  

 107 

 SCHEDULE I 
  
 LEASES 
  
 (INCLUDES TENANT LEASES ONLY) 
  
 Wyndham – Westshore (Tampa): 
  

									
	 Lessor

	 	 Lessee

	 	 Lease Type

	 	 Rate Amount

	 	 Payment Frequency

	 Wyndham Westshore
	 	 Patricia Elian
	 	 Shoe Shine
	 	 $330
	 	 Monthly

					
	 Wyndham Westshore
	 	 Innovus
	 	 ATM
	 	 $Commission
	 	 Monthly

  

 SCHEDULE II 
  
 (Required Repairs - Deadlines For Completion) 
  
 —See Attached— 
  

 SCHEDULE III 
  
 (Organizational Structure) 
  
 —See Attached— 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE 1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	  	1
	 Section 1.1
	  	 Definitions
	  	1
	 Section 1.2
	  	 Principles of Construction
	  	25
		
	 ARTICLE 2 GENERAL TERMS
	  	25
	 Section 2.1
	  	 Loan Commitment; Disbursement to Borrower
	  	25
	 Section 2.2
	  	 Interest Rate
	  	26
	 Section 2.3
	  	 Loan Payment
	  	31
	 Section 2.4
	  	 Prepayments
	  	32
	 Section 2.5
	  	 Release of Property
	  	33
	 Section 2.6
	  	 Cash Management
	  	34
	 Section 2.7
	  	 Extension Options
	  	37
	 Section 2.8
	  	 Substitution
	  	38
		
	 ARTICLE 3 CONDITIONS PRECEDENT
	  	40
	 Section 3.1
	  	 Conditions Precedent to Closing
	  	40
		
	 ARTICLE 4 REPRESENTATIONS AND WARRANTIES
	  	44
	 Section 4.1
	  	 Borrower Representations
	  	44
	 Section 4.2
	  	 Survival of Representations
	  	53
		
	 ARTICLE 5 BORROWER COVENANTS
	  	53
	 Section 5.1
	  	 Affirmative Covenants
	  	53
	 Section 5.2
	  	 Negative Covenants
	  	62
		
	 ARTICLE 6 INSURANCE; CASUALTY; CONDEMNATION; REQUIRED REPAIRS
	  	72
	 Section 6.1
	  	 Insurance
	  	72
	 Section 6.2
	  	 Casualty
	  	76
	 Section 6.3
	  	 Condemnation
	  	77
	 Section 6.4
	  	 Restoration
	  	77
		
	 ARTICLE 7 RESERVE FUNDS
	  	82
	 Section 7.1
	  	 Required Repair Funds
	  	82
	 Section 7.2
	  	 Tax and Insurance Escrow Funds
	  	82
	 Section 7.3
	  	 FF&E Reserve
	  	83
	 Section 7.4
	  	 Intentionally Omitted
	  	84
	 Section 7.5
	  	 Debt Service Reserve
	  	85
	 Section 7.6
	  	 Reserve Funds, Generally
	  	85
		
	 ARTICLE 8 DEFAULTS
	  	87
	 Section 8.1
	  	 Event of Default
	  	87
	 Section 8.2
	  	 Remedies
	  	90

  

 i 

					
	 ARTICLE 9 SPECIAL PROVISIONS
	  	91
	 Section 9.1
	  	 Sale of Note and Securitization
	  	91
	 Section 9.2
	  	 Securitization Indemnification
	  	93
	 Section 9.3
	  	 [RESERVED]
	  	95
	 Section 9.4
	  	 Exculpation
	  	95
	 Section 9.5
	  	 Matters Concerning Manager
	  	98
	 Section 9.6
	  	 Servicer
	  	98
	 Section 9.7
	  	 Severance of Loan Documents
	  	98
		
	 ARTICLE 10 MISCELLANEOUS
	  	100
	 Section 10.1
	  	 Survival
	  	100
	 Section 10.2
	  	 Lender’s Discretion
	  	100
	 Section 10.3
	  	 Governing Law
	  	100
	 Section 10.4
	  	 Modification, Waiver in Writing
	  	102
	 Section 10.5
	  	 Delay Not a Waiver
	  	103
	 Section 10.6
	  	 Notices
	  	103
	 Section 10.7
	  	 Trial by Jury
	  	104
	 Section 10.8
	  	 Headings
	  	104
	 Section 10.9
	  	 Severability
	  	104
	 Section 10.10
	  	 Preferences
	  	104
	 Section 10.11
	  	 Waiver of Notice
	  	104
	 Section 10.12
	  	 Remedies of Borrower
	  	105
	 Section 10.13
	  	 Expenses; Indemnity
	  	105
	 Section 10.14
	  	 Schedules Incorporated
	  	106
	 Section 10.15
	  	 Offsets, Counterclaims and Defenses
	  	106
	 Section 10.16
	  	 No Joint Venture or Partnership; No Third Party Beneficiaries
	  	106
	 Section 10.17
	  	 Publicity
	  	107
	 Section 10.18
	  	 Waiver of Marshalling of Assets
	  	107
	 Section 10.19
	  	 Waiver of Offsets/Defenses/Counterclaims
	  	107
	 Section 10.20
	  	 Conflict; Construction of Documents; Reliance
	  	107
	 Section 10.21
	  	 Brokers and Financial Advisors
	  	108
	 Section 10.22
	  	 Prior Agreements
	  	108

  
 SCHEDULES

  

					
	 Schedule I
	 	–	  	 Leases

	 Schedule II
	 	–	  	 Required Repairs – Deadlines for Completion

	 Schedule III
	 	–	  	 Organizational Structure

  

 ii 

 [California] 
  
 LOAN AGREEMENT 
  
 Dated as of June 21, 2004 
  
 between 
  
 WYNDHAM
COMMERCE OWNER, LLC, 
  
 as Borrower 
  
 and 
  
 COLUMN FINANCIAL, INC., 
  
 as Lender 
  
 ADJUSTABLE RATE PROPERTY LOAN 
  

 LOAN AGREEMENT 
  
 THIS LOAN AGREEMENT, dated as of June 21, 2004 (as amended, restated, replaced, supplemented or otherwise modified from time
to time, this “Agreement”), between COLUMN FINANCIAL, INC., having an address at 11 Madison Avenue, New York, New York 10010 (“Lender”) and WYNDHAM COMMERCE OWNER, LLC, having its principal place of business c/o
Wyndham International, Inc., 1950 Stemmons Freeway, Suite 6001, Dallas, Texas 75207 (“Borrower”). 
  
 W I T N E S S E T H : 
  
 WHEREAS, Borrower desires to obtain the Loan (as hereinafter defined) from Lender; and 
  
 WHEREAS, Lender is willing to make the Loan to Borrower, subject to and in accordance with the terms and conditions of this Agreement and the other Loan
Documents (as hereinafter defined). 
  
 NOW THEREFORE, in
consideration of the making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto hereby covenant, agree, represent and warrant as follows: 
  
 ARTICLE 1 
  
 DEFINITIONS; PRINCIPLES OF CONSTRUCTION 
  
 Section 1.1 Definitions . For all purposes of this Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent: 
  
 “Acceptable Counterparty” shall mean any counterparty to the Interest Rate Cap Agreement that (a) has and
shall maintain, until the expiration of the applicable Interest Rate Cap Agreement, a long-term unsecured debt rating of at least “A+” by S&P and “A1” from Moody’s, which rating shall not include a “t” or
otherwise reflect a termination risk or (b) is otherwise acceptable to the Rating Agencies. Lender hereby acknowledges and agrees that, as of the date hereof, JP Morgan Chase is an Acceptable Counterparty. 
  
 “Acquired Property” shall have the meaning set forth in
Section 5.1.11(d)(i) hereof. 
  
 “Acquired Property
Statements” shall have the meaning set forth in Section 5.1.11(d)(i) hereof. 
  
 “Additional Due Diligence Materials” shall mean, in respect of a Substitute Property, appraisals, engineering reports, environmental reports, survey, title insurance policies, insurance
policies, financial statements (relating to the Substitute Property, Borrower, the Significant Parties and such other Persons as Lender shall reasonably require), financial and market projections, marketing reports, opinions of counsel, resolutions,
consents and other due diligence materials customarily required by Lender or any Rating Agency (in their respective sole 

  

 
discretion) in respect of loan transactions similar to the transactions contemplated hereby and relating to properties similar to the Substitute Property.

  
 “Additional Insolvency Opinion”
shall have the meaning set forth in Section 4.1.30(c) hereof. 
  
 “Adjusted Release Amount” shall mean, the amount which is equal to 120% of the Outstanding Principal Balance as of the date of such release. 
  
 “Affiliate” shall mean, as to any Person, any other Person that, directly or indirectly, is
in control of, is controlled by or is under common control with such Person or is a director or officer of such Person or of an Affiliate of such Person. 
  
 “Affiliated Loans” shall mean a loan (including, without limitation, the Other Loans) made by Lender to an Affiliate of Borrower or
Guarantor. 
  
 “Affiliated Manager” shall mean
any Manager in which Borrower, Principal or Guarantor has, directly or indirectly, any legal, beneficial or economic interest. 
  
 “Aggregate Debt Service” shall mean with respect to any particular period of time, scheduled principal and/or interest payments due on
the Other Loans and the Loan then outstanding. 
  
 “Aggregate Debt Service Coverage Ratio” shall mean, with respect to the Other Properties then remaining subject to the Liens of the Other Mortgages and the Property, in respect of the relevant period, the ratio of: (i) the
Aggregate Net Operating Income (excluding interest on credit accounts) of such Other Properties and the Property for the relevant period to (ii) the applicable Aggregate Debt Service as determined in accordance with the definition of Aggregate Debt
Service set forth herein. 
  
 “Aggregate Gross
Income” shall mean, for any period, the sum of “Gross Income from Operations” (as defined in, and as computed in accordance with, the applicable Other Borrower Loan Documents) of each of the Other Properties then remaining subject
to the Liens of the Other Mortgages and Gross Income from Operations of the Property. 
  
 “Aggregate Net Cash Flow” shall mean, for any period, the sum of (a) Net Cash Flow and (b) Net Cash Flow (as defined in, and computed in accordance with, the applicable Other Borrower Loan Documents)
of each of the Other Properties then remaining subject to the Liens of the Other Mortgages. 
  
 “Aggregate Net Operating Income” shall mean, for any period, the excess of (x) the Aggregate Gross Income over (y) the Aggregate Operating Expenses. 
  
 “Aggregate Operating Expenses” shall mean, in respect of the
relevant period, the sum of Operating Expenses of the Property and “Operating Expenses” (as defined in, and as computed in accordance with, the applicable Other Borrower Loan Documents) of each of the Other Properties then remaining
subject to the Liens of the Other Mortgages. 
  

 2 

 “ALTA” shall mean American Land Title Association, or any successor thereto. 

 
 “Annual Budget” shall mean the operating budget,
including all planned Capital Expenditures, for the Property prepared by Borrower for the applicable calendar year or other period. 
  
 “Annual FF&E Budget” shall mean that portion of the Annual Budget providing for FF&E expenditures. 
  
 “Applicable Interest Rate” shall mean the rate or rates at
which the Outstanding Principal Balance bears interest from time to time in accordance with the provisions of Section 2.2.3 hereof. 
  
 “Approved Annual Budget” shall have the meaning set forth in Section 5.1.11(j) hereof. 
  
 “Approved Annual FF&E Budget” shall have the meaning set
forth in Section 5.1.11(j) hereof. 
  
 “Assignment
of Leases” shall mean that certain first priority Assignment of Leases and Rents, dated as of the date hereof, from Borrower, as assignor, to Lender, as assignee, assigning to Lender all of Borrower’s interest in and to the Leases and
Rents of the Property as security for the Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Assignment of Management Agreement” shall mean that certain Assignment of Management Agreement and Subordination of Management Fees,
dated as of the date hereof, among Lender, Borrower and Manager, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Award” shall mean any compensation paid by any Governmental Authority in connection with a Condemnation.

  
 “Bankruptcy Action” shall mean with respect
to any Person: (a) such Person filing a voluntary petition under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (b) the filing of an involuntary petition against such Person under the Bankruptcy Code or any other
Federal or state bankruptcy or insolvency law, or soliciting such Person or causing to be solicited petitioning creditors for any involuntary petition against such Person; (c) such Person filing an answer consenting to or otherwise acquiescing in or
joining in any involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited petitioning creditors for any involuntary
petition from any Person; (d) such Person consenting to or acquiescing in or joining in an application for the appointment of a custodian, receiver, trustee, or examiner for such Person or any portion of the Property; or (e) such Person making an
assignment for the benefit of creditors, or admitting, in writing or in any legal proceeding, its insolvency or inability to pay its debts as they become due. 
  

“Basic Carrying Costs” shall mean, for any period, the sum of the following costs: (a) Taxes, (b) Other Charges, and (c) Insurance
Premiums. 
  

 3 

 “Borrower” shall have the meaning set forth in the introductory paragraph hereto,
together with its successors and permitted assigns. 
  
 “Borrower Guaranty” shall mean that certain Borrower Guaranty Agreement, dated as of the date hereof, from Borrower in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time. 
  
 “Breakage Costs” shall have the
meaning set forth in Section 2.2.3(h) hereof. 
  
 “Business Day” shall mean any day other than a Saturday, Sunday or any other day on which national banks in New York, New York are not open for business. 
  
 “Capital Expenditures” shall mean, for any period, the amount expended for items capitalized under GAAP
(including expenditures for building improvements or major repairs, leasing commissions and tenant improvements). 
  
 “Cash Management Account” shall have the meaning set forth in Section 2.6.3(a) hereof. 
  
 “Cash Management Agreement” shall mean that certain Cash
Management Agreement, dated as of the date hereof, by and among Borrower and Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Casualty” shall have the meaning set forth in Section 6.2 hereof. 
  
 “Casualty Consultant” shall have the meaning set forth in
Section 6.4(b)(iii) hereof. 
  
 “Casualty
Retainage” shall have the meaning set forth in Section 6.4(b)(iv) hereof. 
  
 “Closing Date” shall mean the date of the funding of the Loan. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended, as it may be further amended from time to time, and any successor
statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 
  
 “Collateral Assignment of Interest Rate Cap Agreement” shall mean a Collateral Assignment of Interest Rate Cap Agreement, in
substantially the same form and content attached hereto as Exhibit A, executed by Borrower in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

  
 “Condemnation” shall mean a temporary or
permanent taking by any Governmental Authority as the result or in lieu or in anticipation of the exercise of the right of condemnation or eminent domain, of all or any part of the Property, or any interest therein or right accruing thereto,
including any right of access thereto or any change of grade affecting the Property or any part thereof. 
  
 “Condemnation Proceeds” shall have the meaning set forth in Section 6.4(b) hereof. 
  

 4 

 “Counterparty” shall mean, with respect to the Interest Rate Cap Agreement and any
Replacement Interest Rate Cap Agreement, any Acceptable Counterparty. 
  
 “Covered Disclosure Information” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “CSFB” shall mean Credit Suisse First Boston Corporation and its successors in interest. 
  
 “Debt” shall mean the Outstanding Principal Balance,
together with all interest accrued and unpaid thereon and all other sums (including any Prepayment Premium) due to Lender in respect of the Loan under the Note, this Agreement, the Mortgage and the other Loan Documents. 
  
 “Debt Service” shall mean, with respect to any particular
period of time, scheduled principal and/or interest payments due under this Agreement and the Note. 
  
 “Debt Service Coverage Ratio” shall mean a ratio for the applicable period in which: 
  
 (a) the numerator is the Net Operating Income (excluding
interest on credit accounts) for the twelve (12) month period immediately preceding the date of determination for which financial statements are available; and 
  

(b) the denominator is the amount of interest paid on the Note for the trailing twelve (12) month period immediately preceding the date
of determination for which financial statements are available calculated at the interest rate computed in accordance with the provisions of this Agreement at a deemed annual rate of 11.33%. 
  
 “Debt Service Reserve” shall mean have the meaning set forth
in Section 7.5. 
  
 “Debt Service Reserve
Account” shall mean have the meaning set forth in Section 7.5. 
  
 “Debt Service Reserve Funds” shall mean have the meaning set forth in Section 7.5. 
  
 “Decorative Changes” shall mean any alterations or change to the Improvements that are made primarily for decorative or cosmetic purposes
(e.g. painting, wallpapering, carpeting, FF&E etc.) that: (a) will not have a Material Adverse Effect, and (b) do not affect or involve (other than in a decorative or cosmetic manner) any structural component of any Improvements, any utility or
HVAC system contained in any Improvements or the exterior of any building constituting a part of any Improvements. 
  
 “Default” shall mean the occurrence of any event hereunder or under any other Loan Document which, but for the giving of notice or
passage of time, or both, would be an Event of Default. 
  
 “Default Rate” shall mean a rate per annum equal to the lesser of (a) the Maximum Legal Rate, and (b) four percent (4%) above the Applicable Interest Rate. 
  

 5 

 “Determination Date” shall mean, with respect to any Interest Period, the date that is
two (2) London Business Days prior to the fifteenth (15th) day of the calendar month in which such Interest Period commences. 
  
 “Disclosure Document” shall mean a prospectus, prospectus supplement, private placement memorandum, offering memorandum, offering
circular, term sheet, road show presentation materials or other offering documents or marketing materials, in each case in preliminary or final form, used to offer Securities in connection with a Securitization. 
  
 “Eligibility Requirements” means, with respect to any
Person, that such Person (i) has total assets (in name or under management) in excess of $50,000,000 and (ii) is regularly engaged in the business of making investments in or operating hotels. 
  
 “Eligible Account” shall mean a separate and identifiable
account from all other funds held by the holding institution that is either (a) an account or accounts maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution or
(b) a segregated trust account or accounts maintained with a federal or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository institution or trust company, is
subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal and state authority. An Eligible Account will
not be evidenced by a certificate of deposit, passbook or other instrument. 
  
 “Eligible Institution” shall mean a depository institution or trust company, the short term unsecured debt obligations or commercial paper of which are rated at least “A-1+” by S&P,
“P-1” by Moody’s and “F-1+” by Fitch in the case of accounts in which funds are held for thirty (30) days or less (or, in the case of accounts in which funds are held for more than thirty (30) days, the long term unsecured
debt obligations of which are rated at least “AA” by Fitch and S&P and “Aa2” by Moody’s). Lender hereby acknowledges and agrees that, as of the date hereof, each of Wachovia, JP Morgan Chase and Wells Fargo is deemed to
be an Eligible Institution. 
  
 “Embargoed
Person” shall have the meaning set forth in Section 4.1.35 hereof. 
  
 “Engineering Report” shall mean that certain report dated March 11, 2004 prepared by Professional Service Industries, Inc. with respect to the Property. 
  
 “Environmental Indemnity” shall mean that certain
Environmental Indemnity Agreement, dated as of the date hereof, executed by Borrower and Guarantor in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to
time. 
  
 “Equipment” shall have the meaning set
forth in the granting clause of the Mortgage. 
  
 “Equity
Pledge Agreement” shall mean that certain Equity Pledge and Security Agreement, dated as of the date hereof, executed by Wyndham Commerce Manager, Inc., a Delaware corporation, and Patriot American Hospitality Partnership, L.P., a Virginia
limited 

  

 6 

 
partnership, in connection with, and securing, the Loan and the Other Loans for the benefit of Lender, as the same may have been, or may hereafter be,
amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
  
 “Event of Default” shall have the meaning set forth in Section 8.1(a) hereof. 
  
 “Excess Cash Flow” shall have the meaning set forth in
Section 2.6.3(b) hereof. 
  
 “Exchange
Act” shall have the meaning set forth in Section 9.2(a) hereof. 
  
 “Exchange Act Filing” shall have the meaning set forth in Section 5.1.11(g) hereof. 
  
 “Extension Notice” shall have the meaning set forth in Section 2.7.1 hereof. 
  
 “Extraordinary Expense” shall have the meaning set forth in
Section 5.1.11(k) hereof. 
  
 “FF&E”
shall mean furniture, fixtures and equipment and other replacements and repairs required to be made to the Property during the applicable calendar year. 
  
 “FF&E Reserve Account” shall have the meaning set forth in Section 7.3.1 hereof. 
  
 “FF&E Reserve Deposit” shall have the meaning set forth
in Section 7.3.1 hereof. 
  
 “FF&E Reserve
Funds” shall have the meaning set forth in Section 7.3.1 hereof. 
  
 “Financing Leases” shall have the meaning set forth in Section 5.2.10(f). 
  
 “First Extension Commencement Date” shall have the meaning set forth in Section 2.7.1 hereof. 
  
 “First Extension Term” shall have the meaning set forth in
Section 2.7.1 hereof. 
  
 “Fiscal
Year” shall mean each twelve (12) month period commencing on January 1 and ending on December 31 during each year of the term of the Loan. 
  
 “Fitch” shall mean Fitch IBCA, Inc. 
  
 “Foreign Taxes” shall have the meaning set forth in Section 2.2.3(e) hereof. 
  
 “Franchise Agreement” shall have the meaning set forth in
Section 5.2.12(a) hereof. 
  
 “Franchisor”
shall have the meaning set forth in Section 5.2.12 hereof. 
  
 “GAAP” shall mean generally accepted accounting principles in the United States of America as of the date of the applicable financial report. 
  

 7 

 “Governmental Authority” shall mean any court, board, agency, commission, office or
other authority of any nature whatsoever for any governmental unit (federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence having jurisdiction over Borrower, Lender and/or the Property. 
  
 “Gross Income from Operations” shall mean, for any period,
all Rents; provided, however, that Gross Income from Operations shall not include: (a) non-recurring income and non-Property related income (as determined by Lender in its reasonable discretion), (b) security deposits received from any
tenant unless and until the same are applied to rent or any other of such tenant’s obligations in accordance with the terms of such tenant’s Lease, (c) any loan proceeds or proceeds of capital or equity contributions received by Borrower,
(d) gratuities or service charges or other similar receipts which are to be paid over to Property employees or persons occupying similar positions for performing similar duties, (e) Insurance Proceeds (other than Insurance Proceeds from business or
rental interruption coverage) and Condemnation Proceeds, (f) excise taxes, sales taxes, use taxes, bed taxes, admission taxes, tourist taxes, gross receipts taxes, value added taxes, entertainment taxes, or other taxes or similar charges payable to
any Governmental Authority, (g) proceeds from the sale of FF&E no longer required for the operation of the Property, and (h) Rents from month-to-month tenants or tenants that are included in any Bankruptcy Action. Any credit or refunds to guests
and patrons with respect to amounts previously included in Gross Income from Operations shall be deducted from Gross Income from Operations in the period when such credit or refund is issued. 
  
 “Ground Lease” shall have the meaning set forth in
Schedule IV annexed hereto. 
  
 “Ground
Lessor” shall mean, collectively, the lessor and the sublessor under the Ground Lease. 
  
 “Ground Rent” shall mean, with respect to the Ground Lease, any rent, additional rent or other charges payable under the Ground Lease.

  
 “Ground Rent Account” shall have the meaning
set forth in Section 7.4.1 hereof. 
  
 “Ground Rent
Reserve Funds” shall have the meaning set forth in Section 7.4.1 hereof. 
  
 “Guarantor” shall mean Wyndham International, Inc., a Delaware corporation. 
  
 “Guaranty” shall mean that certain Guaranty Agreement (Recourse), dated as of the date hereof, from Guarantor in favor of Lender, as the
same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Improvements” shall have the meaning set forth in the granting clause of the Mortgage. 
  
 “Indebtedness” shall mean, for any Person, on a particular date, the sum (without duplication) at such date of: (a) all indebtedness or
liability of such Person (including, without limitation, amounts for borrowed money and indebtedness in the form of mezzanine debt and preferred equity); (b) obligations evidenced by bonds, debentures, notes, or other similar instruments; (c)
obligations for the deferred purchase price of property or services (including 

  

 8 

 
trade obligations); (d) obligations under letters of credit; (e) obligations under acceptance facilities; (f) all guaranties, endorsements (other than for
collection or deposit in the ordinary course of business) and other contingent obligations to purchase, to provide funds for payment, to supply funds, to invest in any Person or entity, or otherwise to assure a creditor against loss; and (g)
obligations secured by any Liens, whether or not the obligations have been assumed. 
  
 “Indemnified Liabilities” shall have the meaning set forth on Section 10.13(b) hereof. 
  
 “Indemnified Person” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “Indemnifying Person” shall mean each of Borrower, Principal
and Guarantor. 
  
 “Independent Director” or
“Independent Manager” shall mean a Person who is not at the time of initial appointment, or at any time while serving as a director or manager, as applicable, and has not been at any time during the preceding five (5) years: (a) a
stockholder, director (with the exception of serving as an Independent Director or Independent Manager), officer, employee, partner, member, attorney or counsel of Principal, Borrower or any Affiliate of either of them; (b) a customer, supplier or
other Person who derives any of its purchases or revenues from its activities with Principal, Borrower or any Affiliate of either of them (with the exception of serving as an Independent Director or Independent Manager); (c) a Person controlling or
under common control with any such stockholder, director, officer, partner, member, customer, supplier or other Person; or (d) a member of the immediate family of any such stockholder, director, officer, employee, partner, member, customer, supplier
or other Person. As used in this definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of management, policies or activities of a Person, whether through ownership
of voting securities, by contract or otherwise. 
  
 “Initial Maturity Date” shall mean July 9, 2006. 
  
 “Insolvency Opinion” shall mean that certain non-consolidation opinion letter dated the date hereof delivered by Sidley Austin Brown & Wood LLP in connection with the Loan. 
  
 “Insurance Premiums” shall have the meaning set forth in
Section 6.1(b) hereof. 
  
 “Insurance
Proceeds” shall have the meaning set forth in Section 6.4(b) hereof. 
  
 “Interest Period” shall mean, with respect to any Payment Date, the period commencing on the ninth (9th) day of the preceding calendar month and terminating on the eighth (8th) day of the calendar
month in which such Payment Date occurs; provided, however, that no Interest Period shall end later than the Maturity Date (other than for purposes of calculating interest at the Default Rate), and the initial Interest Period shall begin on
the Closing Date and shall end on the immediately following eighth (8th) day of the calendar month. 
  
 “Interest Rate Cap Agreement” shall mean, as applicable, an Interest Rate Cap Agreement (together with the confirmation and schedules
relating thereto) in form and substance reasonably satisfactory to Lender between Borrower and an Acceptable Counterparty or a Replacement Interest Rate Cap Agreement. 
  

 9 

 “Junior Lender Security Documents” shall mean the Borrower Guaranty, the Second Mortgage
and any other mortgage, deed of trust, deed to secure debt or other similar instrument encumbering the Property or any portion thereof, the Equity Pledge Agreement or other pledge agreement or other grant of Lien encumbering any of the direct
ownership interests in the Borrower and securing, among other things, the Other Loans or any portion thereof. 
  
 “Lease” shall mean any lease, sublease or subsublease, letting, license, concession or other agreement (whether written or oral and
whether now or hereafter in effect) pursuant to which any Person is granted a possessory interest in, or right to use or occupy all or any portion of any space in the Property, and (a) every modification, amendment or other agreement relating to
such lease, sublease, subsublease, or other agreement entered into in connection with such lease, sublease, subsublease, or other agreement, and (b) every guarantee of the performance and observance of the covenants, conditions and agreements to be
performed and observed by the other party thereto. 
  
 “Legal Requirements” shall mean all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities affecting
the Property or any part thereof, or the construction, use, alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force, including, without limitation, the Americans with Disabilities Act of 1990, and all
permits, licenses and authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments, either of record or known to Borrower, at any time in force affecting the Property or
any part thereof, including, without limitation, any which may (a) require repairs, modifications or alterations in or to the Property or any part thereof, or (b) in any way limit the use and enjoyment thereof. 
  
 “Lender” shall have the meaning set forth in the
introductory paragraph hereto, together with its successors and assigns. 
  
 “Letter of Credit” shall mean an irrevocable, unconditional and transferable letter of credit acceptable to Lender and the Rating Agencies (either an annual, automatically renewing, letter of credit
or one which does not expire until at least ten (10) Business Days after the Maturity Date) in favor of Lender and entitling Lender to draw thereon in the continental United States, issued by a domestic Eligible Institution or the U.S. agency or
branch of a foreign Eligible Institution. 
  
 “Liabilities” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “LIBOR” shall mean, with respect to each Interest Period, the rate (expressed as a percentage per annum, for a one-month period, that
appears on Telerate Page 3750 (or the successor thereto) as of 11:00 a.m., London time, on the related Determination Date. If such rate does not appear on Telerate Page 3750 as of 11:00 a.m., London time, on such Determination Date, LIBOR shall be
the arithmetic mean of the offered rates (expressed as a percentage per annum) for deposits in U.S. dollars for a one-month period that appear on the Reuters Screen Libor Page as of 11:00 a.m., London time, on such Determination Date, if at least
two such offered rates so appear. If fewer than two such offered rates appear on the Reuters Screen Libor Page as of 11:00 a.m., London time, on such Determination Date, Lender shall request the 

  

 10 

 
principal London office of any four major reference banks in the London interbank market selected by Lender 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 a one-month period as of 11:00 a.m., London time, on such Determination Date for the amounts of not less than U.S. $1,000,000. If at
least two such offered quotations are so provided, LIBOR shall be the arithmetic mean of such quotations. If fewer than two such quotations are so provided, Lender shall request any three major banks in New York City selected by Lender to provide
such bank’s rate (expressed as a percentage per annum) for loans in U.S. dollars to leading European banks for a one-month period as of approximately 11:00 a.m., New York City time on the applicable Determination Date for amounts of not less
than U.S. $1,000,000. If at least two such rates are so provided, LIBOR shall be the arithmetic mean of such rates. LIBOR shall be determined conclusively by Lender or its agent. 
  
 “LIBOR Loan” shall mean the Loan at such time as interest thereon accrues at a rate of interest based upon
LIBOR. 
  
 “Licenses” shall have the meaning set
forth in Section 4.1.22 hereof. 
  
 “Lien”
shall mean any mortgage, deed of trust, lien, pledge, hypothecation, easement, restrictive covenant, preference, assignment, security interest or any other encumbrance, charge or transfer of, or any agreement to enter into or create, any of the
foregoing, on or affecting Borrower, the Property or any portion thereof or any interest therein, or any direct or indirect interest in Borrower or Principal, including, without limitation, any conditional sale or other title retention agreement,
any financing lease having substantially the same economic effect as any of the foregoing, the filing of any financing statement, and mechanic’s, materialmen’s and other similar liens and encumbrances. 
  
 “Loan” shall mean the loan in the original principal amount
of THREE MILLION NINE HUNDRED THOUSAND AND NO/100 DOLLARS ($3,900,000.00), made by Lender to Borrower pursuant to this Agreement. 
  
 “Loan Documents” shall mean, collectively, this Agreement, the Note, the Mortgage, the Assignment of Leases, the Environmental Indemnity,
the Assignment of Management Agreement, the Guaranty, the Cash Management Agreement, the Property Account Agreement, the Equity Pledge Agreement, the Collateral Assignment of Interest Rate Cap Agreement, the Junior Lender Security Documents and all
other documents executed and/or delivered in connection with the Loan. 
  
 “London Business Day” shall mean any day other than a Saturday, Sunday or any other day on which commercial banks in London, England are not open for business. 
  
 “Management Agreement” shall mean the management agreement entered into by and between Borrower and the
Manager, as the same has been and may be amended, modified or supplemented from time to time, pursuant to which the Manager is to provide management and other services with respect to the Property, or, if the context requires, the Replacement
Management Agreement. 
  

 11 

 “Manager” shall mean Wyndham Management Corporation, a Delaware corporation, or, if the
context requires, a Qualified Manager who is managing the Property in accordance with the terms and provisions of this Agreement. 
  
 “Material Adverse Effect” shall mean any material adverse change in the use, operation or value of the Property and/or the business
operations and/or the financial condition of a Significant Party. 
  
 “Maturity Date” shall mean the Initial Maturity Date (as the same may be extended in accordance with Sections 2.7 hereof), or such other date on which the final payment of principal of the Note becomes due and
payable as therein or herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise. 
  
 “Maximum Legal Rate” shall mean the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted
for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents, under the laws of such state or states whose laws are held by any court of competent jurisdiction to govern
the interest rate provisions of the Loan. 
  
 “Mezzanine
Borrower” shall mean the obligor under any Mezzanine Loan, which entity shall meet the requirements set forth in Section 9.8(b) hereof. 
  
 “Mezzanine Loan” shall have the meaning set forth in Section 9.8 hereof. 
  
 “Mezzanine Option” shall have the meaning set forth in
Section 9.8 hereof. 
  
 “Moody’s”
shall mean Moody’s Investors Service, Inc. 
  
 “Monthly Interest Payment” shall have the meaning set forth in Section 2.3.1. 
  
 “Mortgage” shall mean that certain first priority Leasehold Deed of Trust, Assignment of Leases and Rents, Security Agreement and
Fixture Filing, dated the date hereof, executed and delivered by Borrower as security for the Loan and encumbering the Property, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Mortgage Borrower” shall have the meaning set forth in
Section 9.8 hereof. 
  
 “Mortgage Loan”
shall have the meaning set forth in Section 9.8 hereof. 
  
 “Mortgage Lender” shall have the meaning set forth in Section 9.8 hereof. 
  
 “Net Cash Flow” shall mean, for any period, the amount obtained by subtracting (a) Operating Expenses and (b) an amount equal to four
percent (4%) of Gross Income from Operations for such period, from Gross Income from Operations for such period. 
  
 “Net Cash Flow Schedule” shall have the meaning set forth in Section 5.1.11(b) hereof. 
  

 12 

 “Net Cash Flow Failure” shall mean that, at the end of any calendar quarter, the
Aggregate Net Cash Flow for the preceding twelve (12) month period is less than eighty percent (80%) of the Aggregate Net Cash Flow as of the Closing Date, as determined by Lender in its sole discretion, and in each case determining such amounts
only for the Property and such Other Properties remaining subject to the liens of the Other Mortgages as of the date such determination is made. 
  
 “Net Operating Income” shall mean, for any period, the amount obtained by subtracting Operating Expenses for such period from Gross
Income from Operations for such period. 
  
 “Net
Proceeds” shall have the meaning set forth in Section 6.4(b) hereof. 
  
 “Net Proceeds Deficiency” shall have the meaning set forth in Section 6.4(b)(vi) hereof. 
  
 “Note” shall mean that certain Promissory Note of even date herewith in the principal amount of THREE MILLION NINE HUNDRED THOUSAND AND
NO/100 Dollars ($3,900,000.00), made by Borrower in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Notice” shall have the meaning set forth in Section 10.6 hereof. 
  
 “Obligations” shall mean, collectively, Borrower’s
obligations for the payment of the Debt and the performance of the Other Obligations. 
  
 “Offering Document Date” shall have the meaning set forth in Section 5.1.11(d)(iv) hereof. 
  
 “Officer’s Certificate” shall mean a certificate delivered to Lender by Borrower which is signed by an authorized senior officer of
the general partner or managing member of Borrower, as applicable, and solely with respect to the delivery of financial statements required pursuant to Section 5.1.11 hereof, such certificate may also be signed by an authorized senior officer
of Manager. 
  
 “Operating Expenses” shall mean,
for any period, the total of all expenses, computed in accordance with GAAP, of whatever kind relating to the operation, maintenance and/or management of the Property, which expenditures are incurred on a regular monthly or other periodic basis,
including without limitation, utilities, ordinary repairs and maintenance, insurance, license fees, property taxes and assessments, advertising expenses, management fees, payroll and related taxes, computer processing charges, operational equipment
or other lease payments as approved by Lender, and other similar costs, but excluding depreciation, Debt Service, Capital Expenditures, and contributions to the FF&E Reserve Funds, the Tax and Insurance Escrow Funds, the Ground Rent Reserve
Funds, the Debt Service Reserve Funds and any other reserves required under the Loan Documents. 
  
 “Other Borrowers” shall mean, individually or collectively, Ft. Lauderdale Owner, LLC, PAH-Tampa, L.P., and Summerfield Hanover Owner,
LLC. 
  

 13 

 “Other Borrower Loan Documents” shall mean, the loan agreements, the promissory notes,
the mortgages, the deeds of trust, the assignments of leases and rents, and every other document or agreement executed by the Other Borrowers, or any of them, or any other Person for the benefit of Lender, securing, evidencing or otherwise executed
in connection with any one or more of the Other Loans and/or the Loan, as any of the same may hereafter be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Other Borrower Obligations” shall mean the Other Loans
together with all obligations of every Other Borrower under the Other Borrower Loan Documents. 
  
 “Other Charges” shall mean all maintenance charges, impositions other than Taxes, and any other charges, in each case imposed by Governmental Authorities, including, without limitation, vault charges
and license fees for the use of vaults, chutes and similar areas adjoining the Property, now or hereafter levied or assessed or imposed against the Property or any part thereof. 
  
 “Other Loan Agreements” shall mean each Loan Agreement entered into between any Other Borrower and Lender
in respect of the applicable Other Loan. 
  
 “Other
Loan” shall mean the other loans made by Lender to the Other Borrowers. 
  
 “Other Loan Shortfall” shall have the meaning set forth in Section 2.6.3(b) hereof. 
  
 “Other Mortgages” shall mean the other mortgages granted by the Other Borrowers to, or in favor of, Lender with respect to the Other
Properties. 
  
 “Other Property” shall mean,
collectively, each parcel of real property (other than the Property) together with the improvements thereon and other real property appurtenant thereto securing any one or more of the Other Loans. 
  
 “Other Obligations” shall mean: (a) the performance of all
obligations of Borrower contained herein; (b) the performance of each obligation of Borrower contained in any other Loan Document; and (c) the performance of each obligation of Borrower contained in any renewal, extension, amendment, modification,
consolidation, change of, substitution of, or replacement for, all or any part of this Agreement, the Note or any other Loan Documents. 
  
 “Outstanding Principal Balance” shall mean, as of any date, the outstanding principal balance of the Loan. 
  
 “Payment Date” shall mean the ninth (9th) day of each
calendar month during the term of the Loan or, if such day is not a Business Day, the immediately preceding Business Day. 
  
 “Payment Direction Letters” shall have the meaning set forth in Section 2.6.1. 
  
 “Permitted Encumbrances” shall mean, collectively (a) the
Liens and security interests created by the Loan Documents, (b) all Liens, encumbrances and other matters disclosed in the Title Insurance Policy, (c) Liens, if any, for Taxes imposed by any Governmental Authority not yet due or delinquent, (d)
Financing Leases permitted pursuant to the provisions of this 

  

 14 

 
Agreement, and (e) such other title and survey exceptions as Lender has approved or may approve in writing in Lender’s sole discretion. 
  
 “Permitted Investments” shall have the meaning set forth in
the Cash Management Agreement. 
  
 “Person” shall
mean any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association, any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary
acting in such capacity on behalf of any of the foregoing. 
  
 “Personal Property” shall have the meaning set forth in the granting clause of the Mortgage. 
  
 “Physical Conditions Report” shall mean a report prepared by a company satisfactory to Lender regarding the physical condition of the
Property, satisfactory in form and substance to Lender in its sole discretion, which report shall, among other things, (i) confirm that the Property and its use comply, in all material respects, with all applicable Legal Requirements (including
zoning, subdivision and building codes and laws), and (ii) include a copy of a final certificate of occupancy with respect to all Improvements (unless previously delivered to Lender). 
  
 “Policies” shall have the meaning specified in Section 6.1(b) hereof. 
  
 “Prepayment Premium” shall mean an amount equal to the
following: one percent (1.0%) of the principal balance of the Loan being prepaid if the prepayment occurs on or after the date hereof through, and including, June 9, 2005. 
  
 “Prime Rate” shall mean the annual rate of interest publicly announced by Citibank, N.A. in New York, New
York, as its base rate, as such rate shall change from time to time. If Citibank, N.A. ceases to announce a base rate, Prime Rate shall mean the rate of interest published in The Wall Street Journal from time to time as the “Prime
Rate.” If more than one “Prime Rate” is published in The Wall Street Journal for a day, the average of such “Prime Rates” shall be used, and such average shall be rounded up to the nearest one-hundredth
(1/100th) of one percent. If The Wall Street Journal ceases to publish the “Prime Rate,” Lender
shall select an equivalent publication that publishes such “Prime Rate,” and if such “Prime Rates” are no longer generally published or are limited, regulated or administered by a governmental or quasigovernmental body, then
Lender shall select a comparable interest rate index. 
  
 “Prime Rate Loan” shall mean the Loan at such time as interest thereon accrues at a rate of interest based upon the Prime Rate. 
  
 “Prime Rate Spread” shall mean the difference (expressed as the number of basis points) between (a) LIBOR plus the Spread on the date
LIBOR was last applicable to the Loan and (b) the Prime Rate on the date that LIBOR was last applicable to the Loan; provided, however, in no event shall such difference be a negative number. 
  
 “Principal” shall mean the Special Purpose Entity
corporation which is the managing member of Borrower. 
  

 15 

 “Property” shall mean each parcel of real property demised under the Ground Lease, the
Improvements thereon and all personal property owned by Borrower and encumbered by the Mortgage, together with all rights pertaining to such property and Improvements, as more particularly described in the granting clause of the Mortgage and
referred to therein as the “Property”. 
  
 “Property Account” shall have the meaning set forth in Section 2.6.1(a) hereof. 
  
 “Property Account Agreement” shall mean that certain Property Account Agreement, dated as of the date hereof, by and among Borrower,
Lender and Property Account Bank, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Property Account Bank” shall mean Wells Fargo Bank, N.A., or any successor or permitted assigns thereof. 
  
 “Provided Information” shall mean any and all financial and
other information provided at any time by, or on behalf of, any Indemnifying Person with respect to the Property, any Significant Party and/or an Affiliated Manager. 
  
 “Public Company” shall mean a corporation or other Person whose stock or ownership interests or (ii)
depository receipts or their equivalent are publicly traded on a nationally recognized stock exchange, including, without limitation, NASDAQ or on the leading recognized stock exchange in Spain, Germany, Italy, Canada, France, Tokyo, Australia,
Singapore, England or Hong Kong, or in another country which requires companies publicly traded on such leading exchange to provide public information reasonably comparable to that required in the United States. 
  
 “Qualified Borrower” shall mean a Special Purpose Entity and
otherwise approved by Lender in its sole discretion. 
  
 “Qualified Manager” shall mean either (a) Manager, or (b) a reputable and experienced management organization (which may be an Affiliate of Borrower) possessing experience in managing properties similar in size, scope, use
and value as the Property, provided, that, following a Securitization, or at such time as the Loan is scheduled to be included in a Securitization, Borrower shall have obtained prior written confirmation from the applicable Rating
Agencies that management of the Property by such Person will not cause a downgrade, withdrawal or qualification of the then current ratings of the Securities or any class thereof. 
  
 “Qualified Transferee” shall mean any one of the following Persons, subject to the reasonable determination
of Lender that such Person satisfies the applicable requirements set forth in this definition and which is not otherwise an Embargoed Person: 
  
 (a) a pension fund, pension trust or pension account that has total assets of at least $500 million that is managed by an entity that
controls or manages at least $1 billion of real estate equity assets; 
  

 16 

 (b) a pension fund advisor that controls or manages at least $1 billion of real estate
equity assets immediately prior to any proposed transfer hereunder; 
  
 (c) an insurance company that is subject to supervision by the insurance commission, or a similar official or agency, of a State or territory of the United States (including the District of Columbia), which has a net
worth, as of a date no more than six (6) months prior to the date of the proposed transfer hereunder, of at least $500 million and controls real estate equity assets of at least $1 billion immediately prior to any proposed transfer hereunder;

  
 (d) a corporation organized under the banking
or trust company laws of the United States or any State or territory of the United States (including the District of Columbia) that has a combined capital and surplus of at least $500 million and that immediately prior to a proposed transfer
hereunder controls real estate equity assets of at least $1 billion; or 
  
 (e) any equity (a)(i) with a long-term unsecured debt rating from the Rating Agencies of at least BBB- (or its equivalent) or (b) (1) that owns or operates, together with its affiliates, at least ten (10) first class
hotel properties, (2) that has a net worth as of a date no more than six (6) months prior to the date of any proposed transfer hereunder of at least $500 million and (3) that controls, together with its Affiliates, real estate equity assets of at
least $1 billion immediately prior to any proposed transfer hereunder. 
  
 “Quarterly Net Cash Flow Test” shall have the meaning set forth in Section 2.6.6. 
  
 “Rating Agencies” shall mean each of S&P, Moody’s and Fitch, or any other nationally recognized statistical rating agency which
rates the Securities. 
  
 “Release Default” shall
mean (i) a monetary Default under any Loan Document or (ii) any other material Default under any Loan Document of which Lender has given written notice thereof to Borrower whether or not the applicable grace or cure period, if any, has expired.

  
 “REMIC Trust” shall mean a “real estate
mortgage investment conduit” within the meaning of Section 860D of the Code that holds the Note. 
  
 “Rents” shall mean all rents, receipts, revenues, income (including service charges), fees, payments and proceeds of sales of every kind
received by or on behalf of Borrower, directly or indirectly, from operating the Property for that period, and services rendered to, and rentals, percentage rentals and other fees, payments and charges received from, tenants, subtenants, licensees,
concessionaires and occupants of commercial, hotel, public and retail space located in or at the Property, calculated on a cash basis, whether in cash or on credit, including, without limitation, revenues from the rental of rooms, guest suites,
conference and banquet rooms, food and beverage facilities, telephone services, laundry, vending, television and parking at the Property, and other fees and charges resulting from the operations of the Property by or on behalf of Borrower in the
ordinary course of business, and proceeds, if any, from business interruption or other loss of income insurance (net of the costs of collection thereof) and also including any proceeds received by Borrower in respect of the Interest Rate Cap
Agreement, non-recurring income and non-Property related income (as determined by Lender in its reasonable discretion), security deposits received from any tenant but only when the same are applied to rent or any other of such tenant’s
obligations in accordance with the terms of such tenant’s Lease, any loan 

  

 17 

 
proceeds or proceeds of capital or equity contributions received by Borrower, Insurance Proceeds and Condemnation Proceeds, proceeds from the sale of
FF&E no longer required for the operation of the Property, and rents from month-to-month tenants or tenants that are included in any Bankruptcy Action. 
  
 “Replaced Borrower” shall have the meaning set forth in Section 2.8 hereof. 
  
 “Replaced Loan” shall have the meaning set forth in
Section 2.8 hereof. 
  
 “Replacement Interest Rate
Cap Agreement” means an interest rate cap agreement from an Acceptable Counterparty with a Strike Price identical to, and all other terms substantially similar to those set forth in, the Interest Rate Cap Agreement except that the same
shall be effective in connection with replacement of the Interest Rate Cap Agreement following a downgrade, withdrawal or qualification of the long-term unsecured debt rating of the Counterparty; provided, that, to the extent any such
interest rate cap agreement does not meet the foregoing requirements, a “Replacement Interest Rate Cap Agreement” shall be such interest rate cap agreement approved in writing by Lender and for which Lender has received a confirmation from
the applicable Rating Agencies that such Replacement Interest Rate Cap Agreement will not cause a downgrade, withdrawal or qualification of the then current rating of the Securities or any class thereof. 
  
 “Replacement Management Agreement” shall mean, collectively:
(a) either (i) a management agreement with a Qualified Manager substantially in the same form and substance as the Management Agreement, or (ii) a management agreement with a Qualified Manager, which management agreement shall be reasonably
acceptable to Lender in form and substance, provided, with respect to this subclause (ii), Lender, at its option, may require that Borrower obtain confirmation from the applicable Rating Agencies that such management agreement will not cause
a downgrade, withdrawal or qualification of the then current rating of the Securities or any class thereof; and (b) an assignment of management agreement and subordination of management fees substantially in the form then used by Lender (or of such
other form and substance reasonably acceptable to Lender), executed and delivered to Lender by Borrower and such Qualified Manager at Borrower’s expense. 
  

“Reserve Funds” shall mean, collectively, the Tax and Insurance Escrow Funds, the FF&E Reserve Funds, the Ground Rent Reserve
Funds, the Debt Service Reserve Funds, and any other escrow fund established pursuant to the Loan Documents. 
  
 “Restoration” shall mean the repair and restoration of the Property after a Casualty or Condemnation as nearly as possible to the
condition the Property was in immediately prior to such Casualty or Condemnation, with such alterations as may be reasonably approved by Lender (it being agreed that the commencement of the preparation of plans and specifications shall constitute
commencement of the Restoration). 
  
 “Restricted
Party” shall mean, collectively (a) Borrower, Principal, Guarantor and any Affiliated Manager and (b) any shareholder, partner, member, non-member manager, direct or indirect legal or beneficial owner, agent and employee of, Borrower,
Principal, Guarantor, any Affiliated Manager or any non-member manager. 
  

 18 

 “RICO” shall mean Racketeer Influenced and Corrupt Organizations Act. 
  
 “S&P” shall mean Standard & Poor’s Ratings
Group, a division of the McGraw-Hill Companies. 
  
 “Sale
or Pledge” shall mean a voluntary or involuntary sale, conveyance, assignment, transfer, encumbrance or pledge of a legal or beneficial interest. 
  
 “Second Extension Commencement Date” shall have the meaning set forth in Section 2.7.2. 
  
 “Second Extension Term” shall have the meaning set forth in
Section 2.7.2. 
  
 “Second Mortgage” shall
mean that certain Second Leasehold Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated the date hereof, executed and delivered by Borrower to Lender as additional security for, among other things, (x) the
Borrower’s obligations under the Borrower Guaranty and (y) the Other Borrower Obligations, and encumbering the Property, as same may be amended, restated, replaced, supplemented or otherwise modified from time to time, which Second Mortgage
shall be subject and subordinate to the Liens of the Mortgage and the Assignment of Leases. 
  
 “Securities” shall have the meaning set forth in Section 9.1 hereof. 
  
 “Securities Act” shall have the meaning set forth in Section 9.2(a) hereof. 
  
 “Securitization” shall have the meaning set forth in
Section 9.1 hereof. 
  
 “Servicer” shall
have the meaning set forth in Section 9.6 hereof. 
  
 “Servicing Agreement” shall have the meaning set forth in Section 9.6 hereof. 
  
 “Severed Loan Documents” shall have the meaning set forth in Section 8.2(b) hereof. 
  
 “Significant Party” shall mean each of Borrower, Guarantor
and Principal. 
  
 “Special Purpose Entity” shall
mean a corporation, limited partnership or limited liability company which at all times prior to, on and after the date hereof: 
  
 (a) was, is and will be organized solely for the purpose of (i) acquiring, developing, owning, holding, selling, leasing, transferring,
exchanging, managing and/or operating the Property, entering into this Agreement and the other Loan Documents with Lender, refinancing the Property in connection with a permitted repayment of the Loan, and transacting lawful business that is
incident, necessary and appropriate to accomplish the foregoing; or (ii) acting as managing member of the limited liability company or general partner of the limited partnership that owns and operates the Property; 
  

 19 

 (b) has not been, is not, and will not be engaged in any business unrelated to (i) the
acquisition, development, ownership, management and/or operation of the Property, or (ii) acting as a member of the limited liability company that owns and operates the Property; 
  
 (c) has not had, does not have, and will not have, any assets other than those related to the Property, its
membership interest in the limited liability company that owns and operates the Property, or acts as the managing member of either of the foregoing, as applicable; 
  
 (d) has not engaged in, sought or consented to and will not engage in, seek or consent to, any dissolution,
winding up, liquidation, consolidation, merger, sale of all or substantially all of its assets, transfer of membership interests or amendment of its articles of incorporation, articles of organization or operating agreement (as applicable) with
respect to the matters set forth in this definition; 
  
 (e) if such entity is a corporation, has had, now has and will have at least two (2) Independent Directors, and has not caused or allowed, and will not cause or allow, the board of directors of such entity to take any action requiring the
unanimous affirmative vote of one hundred percent (100%) of the members of its board of directors unless two (2) Independent Directors shall have participated in such vote; 
  
 (f) if such entity is a limited liability company with more than one member, has had, now has and will have
at least one member that is a Special Purpose Entity that is a corporation that has at least two (2) Independent Directors and that owns at least one percent (1.0%) of the equity of the limited liability company; 
  
 (g) if such entity is a limited liability company with only
one member, has been, now is, and will be a limited liability company that has (i) as its only member a non-managing member, (ii) at least two (2) Independent Managers and has not caused or allowed, and will not cause or allow, the board of managers
of such entity to take any action requiring the unanimous affirmative vote of one hundred percent (100%) of the managers unless two (2) Independent Managers shall have participated in such vote, and (iii) at least one (1) springing member that will
become the non-managing member of such entity upon the dissolution of the existing non-managing member; 
  
 (h) if such entity is (i) a limited liability company, has had, now has, and will have articles of organization and/or an operating
agreement, as applicable, or (ii) a corporation, has had, now has, and will have a certificate of incorporation that, in each of the foregoing cases, provides that such entity will not: (A) dissolve, merge, liquidate or consolidate; (B) sell all or
substantially all of its assets or the assets of Borrower (as applicable); (C) engage in any other business activity or amend its organizational documents with respect to the matters set forth in this definition without the consent of Lender; or (D)
without the affirmative vote of two (2) Independent Directors and of all other directors of the corporation (that is such entity or the managing or co-managing member of such entity), file a bankruptcy or insolvency petition or otherwise institute
insolvency proceedings with respect to itself or to any other entity in which it has a direct or indirect legal or beneficial ownership interest; 
  

 20 

 (i) has been, is and intends to remain solvent and has paid and intends to continue to
pay its debts and liabilities (including, as applicable, shared personnel and overhead expenses) from its assets as the same have or shall become due, and has maintained, is maintaining and intends to maintain adequate capital for the normal
obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations; 
  
 (j) has not failed, and will not fail, to correct any known misunderstanding regarding the separate identity of such entity; 

 
 (k) has maintained and will maintain its accounts, books
and records separate from any other Person and has filed and will file its own tax returns, except to the extent that it has been or is required to file consolidated tax returns by law; 
  
 (l) has maintained and will maintain its own records, books, resolutions and agreements; 
  
 (m) other than as provided in this Agreement and the Cash
Management Agreement, (i) has not commingled, and will not commingle, its funds or assets with those of any other Person and (ii) has not participated and will not participate in any cash management system with any other Person; 
  
 (n) has held and will hold its assets in its own name;

  
 (o) has conducted and will conduct its
business in its name or in a name franchised or licensed to it by an entity other than an Affiliate of Borrower, except for services rendered under a business management services agreement with an Affiliate that complies with the terms contained in
subsection (cc) below, so long as the manager, or equivalent thereof, under such business management services agreement holds itself out as an agent of Borrower; 
  
 (p) has maintained and will maintain its financial statements, accounting records and other entity documents
separate from any other Person and has not permitted, and will not permit, its assets to be listed as assets on the financial statement of any other entity except as required by GAAP; provided, however, that any such consolidated
financial statement shall contain a note indicating that its separate assets and liabilities are neither available to pay the debts of the consolidated entity nor constitute obligations of the consolidated entity; 
  
 (q) has paid and will pay its own liabilities and expenses,
including the salaries of its own employees, out of its own funds and assets, and has maintained and will maintain a sufficient number of employees in light of its contemplated business operations; 
  
 (r) has observed and will observe all partnership, corporate
or limited liability company formalities, as applicable; 
  
 (s) has had no and will have no Indebtedness other than (i) the Loan, (ii) unsecured trade and operational debt incurred in the ordinary course of business relating to the ownership and operation of the Property and
the routine administration of Borrower, in amounts not to exceed three percent (3%) of the original principal amount of the Loan, in the 

  

 21 

 
aggregate, which liabilities are not more than sixty (60) days past the date incurred, are not evidenced by a note and are paid when due, and which amounts
are normal and reasonable under the circumstances, (iii) Financing Leases except as permitted pursuant to this Agreement, and (iv) such other liabilities (including the Borrower Guaranty) that are permitted or required pursuant to this
Agreement; 
  
 (t) has not assumed or
guaranteed or become obligated for, and will not assume or guarantee or become obligated for the debts of any other Person and has not held out and will not hold out its credit as being available to satisfy the obligations of any other Person except
as permitted pursuant to this Agreement other than the Borrower Guaranty; 
  
 (u) has not acquired and will not acquire obligations or securities of its partners, members or shareholders or any other Affiliate; 
  
 (v) has allocated and will allocate, fairly and reasonably, any overhead expenses that are shared with any
Affiliate, including, but not limited to, paying for shared office space and services performed by any employee of an Affiliate; 
  
 (w) has maintained and used, now maintains and uses, and will maintain and use, separate stationery, invoices and checks bearing its name.
The stationery, invoices, and checks utilized by the Special Purpose Entity or utilized to collect its funds or pay its expenses have borne and shall bear its own name and have not borne and shall not bear the name of any other entity unless such
entity is clearly designated as being the Special Purpose Entity’s agent; 
  
 (x) has not pledged and will not pledge its assets for the benefit of any other Person other than in connection with the Other Loans;

  
 (y) has held itself out and identified
itself, and will hold itself out and identify itself, as a separate and distinct entity under its own name or in a name franchised or licensed to it by an entity other than an Affiliate of Borrower and not as a division or part of any other Person,
except for services rendered under a business management services agreement with an Affiliate that complies with the terms contained in subsection (cc) below, so long as the manager, or equivalent thereof, under such business management services
agreement holds itself out as an agent of Borrower; 
  
 (z) has maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual assets from those of any other Person; 
  
 (aa) has not made and will not make loans to any Person or
hold evidence of indebtedness issued by any other Person or entity (other than cash and investment-grade securities issued by an entity that is not an Affiliate of or subject to common ownership with such entity); 
  
 (bb) has not identified and will not identify its partners,
members or shareholders, or any Affiliate of any of them, as a division or part of it, and has not identified itself, and shall not identify itself, as a division of any other Person; 
  

 22 

 (cc) has not entered into or been a party to, and will not enter into or be a party to,
any transaction with its partners, members, shareholders or Affiliates except (i) in the ordinary course of its business and on terms which are intrinsically fair, commercially reasonable and are no less favorable to it than would be obtained in a
comparable arm’s-length transaction with an unrelated third party, and (ii) in connection with this Agreement; 
  
 (dd) has not had and will not have any obligation to indemnify, and has not indemnified and will not indemnify its partners, officers,
directors or members, as the case may be, unless such an obligation was and is fully subordinated to the Obligations and will not constitute a claim against the Obligations in the event that cash flow in excess of the amount required to pay the
Obligations is insufficient to pay such obligation; 
  
 (ee) if such entity is a corporation, it has considered and shall consider the interests of its creditors in connection with all corporate actions; 
  
 (ff) does not and will not have any of its obligations guaranteed by any Affiliate other than in connection with the Other Loans; and

  
 (gg) has complied and will comply with all of
the terms and provisions contained in its organizational documents. The statement of facts contained in its organizational documents are true and correct and will remain true and correct. 
  
 “Spread” shall mean one and 20/100 percent (1.20%). 
  
 “Standard Statements” shall have the meaning set forth in
Section 5.1.11(d)(i) hereof. 
  
 “State”
shall mean the State or Commonwealth in which the Property or any part thereof is located. 
  
 “Strike Price” shall mean seven percent (7%). 
  
 “Substitute Borrower” shall have the meaning set forth in Section 2.8. 
  
 “Substitute Loan Documents” shall have the meaning set forth in Section 2.8. 
  
 “Substitute Property” shall have the meaning set forth in
Section 2.8. 
  
 “Substitution” shall have
the meaning set forth in Section 2.8. 
  
 “Substitution Date” shall have the meaning set forth in Section 2.8. 
  
 “Substitution Loan” shall have the meaning set forth in Section 2.8. 
  
 “Survey” shall mean a survey of the Property prepared pursuant to the requirements contained in Section
4.1.27 hereof. 
  
 “Sweep Event” shall mean
the period following the occurrence of (a) an Event of Default, or (b) a default beyond the expiration of applicable notice and cure periods under the Management Agreement, or (c) a Net Cash Flow Failure and ending on a “Sweep Event 

  

 23 

 
Termination.” A Sweep Event shall be terminated (a “Sweep Event Termination”) (i) with respect to an Event of Default (but not
more than one (1) time during the term of the Loan, as the same may be extended) provided such Event of Default has been cured and such cure is accepted by Lender, provided that Lender has not otherwise accelerated the Loan, moved for a receiver or
commenced foreclosure proceedings, and/or (ii) with respect to a default by Manager under the Management Agreement, the replacement of the Manager with a Qualified Manager pursuant to a Replacement Management Agreement, and/or (iii) with respect to
a Net Cash Flow Failure (but not more than once every twelve (12) months) if, for the trailing twelve (12) month period preceding the date of determination, the Aggregate Net Cash Flow is equal to or greater than eighty percent (80%) of the
Aggregate Net Cash Flow as of the Closing Date for two (2) consecutive calendar quarters. 
  
 “Tax and Insurance Escrow Funds” shall have the meaning set forth in Section 7.2 hereof. 
  
 “Taxes” shall mean all real estate and personal property taxes, assessments, water rates or sewer rents, now or hereafter levied or
assessed or imposed against the Property or part thereof, together with all interest and penalties thereon. 
  
 “Third Extension Commencement Date” shall have the meaning set forth in Section 2.7.3. 
  
 “Third Extension Term” shall have the meaning set forth in
Section 2.7.3. 
  
 “Threshold Amount”
shall have the meaning set forth in Section 5.1.21 hereof. 
  
 “Title Company” shall mean, collectively, Fidelity National Title Insurance Company and National Land Tenure, or any successor title company acceptable to Lender and licensed to issue title insurance in the State in which
the Property is located. 
  
 “Title Insurance
Policies” shall mean collectively, (a) an ALTA mortgagee title insurance policy in a form acceptable to Lender (or, if the Property is in a State which does not permit the issuance of such ALTA policy, such form as shall be permitted in
such State and acceptable to Lender) issued with respect to the Property and insuring the lien of the Mortgage encumbering the Property, and (b) an ALTA mortgagee title insurance policy in a form acceptable to Lender (or, if the Property is in a
State which does not permit the issuance of such ALTA policy, such form as shall be permitted in such State and acceptable to Lender) issued with respect to the Property and insuring the lien of the Second Mortgage encumbering the Property.

  
 “Transfer” shall have the meaning set forth
in Section 5.2.10(b) hereof. 
  
 “Transferee” shall have the meaning set forth in Section 5.2.10(e) hereof. 
  
 “UCC” or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in the State in which the
Property is located. 
  

 24 

 “Unavoidable Delays” means delays due to strikes, lockouts, acts of God, unusually
severe weather, inability to obtain labor or materials (except as may be due to Borrower’s or any of Borrower’s contractors’ or subcontractors’ economic inability to acquire same), government restrictions, enemy action, civil
commotion, fire, casualties or similar causes beyond Borrower’s reasonable control. 
  
 “U.S. Obligations” shall mean non-redeemable securities evidencing an obligation to timely pay principal and/or interest in a full and timely manner that are direct obligations of the United States of
America for the payment of which its full faith and credit is pledged. 
  
 “Wyndham” shall have the meaning set forth in Section 5.2.10(c). 
  
 Section 1.2 Principles of Construction. All references to sections and schedules are to sections and schedules in or to this Agreement unless
otherwise specified. All uses of the word “including” shall mean “including, without limitation” unless the context shall indicate otherwise. Unless otherwise specified, the words “hereof,” “herein” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement and the word “including” shall mean “including but not
limited to”. Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms of the terms so defined. 
  
 ARTICLE 2 
  
 GENERAL TERMS 
  
 Section 2.1 Loan Commitment; Disbursement to Borrower. 
  
 2.1.1 Agreement to Lend and Borrow. Subject to and upon the terms and conditions set forth herein, Lender hereby agrees to make and
Borrower hereby agrees to borrow the Loan on the Closing Date. 
  
 2.1.2 Single Disbursement to Borrower. Borrower may request and receive only one disbursement hereunder in respect of the Loan and any amount borrowed and repaid hereunder in respect of the Loan may not be
reborrowed. 
  
 2.1.3 The Note, Mortgage and
Loan Documents. The Loan shall be evidenced by the Note and secured by the Mortgage, the Assignment of Leases and the other Loan Documents. 
  
 2.1.4 Use of Proceeds. Borrower shall use the proceeds of the Loan to (a) refinance the Property and/or repay and discharge any
existing loans relating to the Property, (b) pay all past-due Basic Carrying Costs, if any, with respect to the Property, (c) make initial deposits into the Reserve Funds on the Closing Date in the amounts provided herein and in the other Loan
Documents, (d) pay costs and expenses incurred in connection with the closing of the Loan, as approved by Lender, (d) fund any working capital requirements of the Property, and (e) distribute the balance, if any, to Borrower. 
  

 25 

 Section 2.2 Interest Rate. 
  
 2.2.1 Interest Generally. Interest on the Outstanding Principal Balance shall accrue from the Closing
Date to but excluding the Maturity Date at the Applicable Interest Rate. 
  
 2.2.2 Interest Calculation. Interest on the Outstanding Principal Balance shall be calculated by multiplying (a) the actual number of days elapsed in the period for which the calculation is being made by (b) a
daily rate based on a three hundred sixty (360) day year by (c) the Outstanding Principal Balance. 
  
 2.2.3 Determination of Interest Rate. 
  
 (a) The Applicable Interest Rate with respect to the Loan shall be: (i) LIBOR plus the Spread with respect to the applicable Interest
Period for a LIBOR Loan; or (ii) the Prime Rate plus the Prime Rate Spread for a Prime Rate Loan if the Loan is converted to a Prime Rate Loan pursuant to the provisions of Section 2.2.3 (c) or (f). 
  
 (b) Subject to the terms and conditions of this Section
2.2.3, the Loan shall be a LIBOR Loan and Borrower shall pay interest on the Outstanding Principal Balance at LIBOR plus the Spread for the applicable Interest Period. Any change in the rate of interest hereunder due to a change in the
Applicable Interest Rate shall become effective as of the opening of business on the first day on which such change in the Applicable Interest Rate shall become effective. Each determination by Lender of the Applicable Interest Rate shall be
conclusive and binding for all purposes, absent manifest error. 
  
 (c) In the event that Lender shall have determined (which determination shall be conclusive and binding upon Borrower absent manifest error) that by reason of circumstances affecting the interbank Eurodollar market,
adequate and reasonable means do not exist for ascertaining LIBOR, then Lender shall forthwith give notice by telephone of such determination, confirmed in writing, to Borrower at least one (1) day prior to the last day of the related Interest
Period. If such notice is given, the related outstanding LIBOR Loan shall be converted, on the last day of the then current Interest Period, to a Prime Rate Loan. 
  
 (d) If, pursuant to the terms of this Agreement, any portion of the Loan has been converted to a Prime Rate
Loan and Lender shall determine (which determination shall be conclusive and binding upon Borrower absent manifest error) that the event(s) or circumstance(s) which resulted in such conversion shall no longer be applicable, Lender shall give notice
by telephone of such determination, confirmed in writing, to Borrower at least one (1) day prior to the last day of the related Interest Period. If such notice is given, the related outstanding Prime Rate Loan shall be converted to a LIBOR Loan on
the last day of the then current Interest Period. 
  
 (e) With respect to a LIBOR Loan, all payments made by Borrower hereunder shall be made free and clear of, and without reduction for or on account of, income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions,
reserves or withholdings imposed, levied, collected, withheld or assessed by any Governmental Authority, which are imposed, enacted or become effective after the date hereof (such non-excluded taxes being referred to collectively as “Foreign
Taxes”), excluding income and franchise taxes of the United States of America or any political subdivision or taxing authority thereof or therein (including Puerto 

  

 26 

 
Rico). If any Foreign Taxes are required to be withheld from any amounts payable to Lender hereunder, the amounts so payable to Lender shall be increased to
the extent necessary to yield to Lender (after payment of all Foreign Taxes) interest or any such other amounts payable hereunder at the rate or in the amounts specified hereunder. Whenever any Foreign Tax is payable pursuant to applicable law by
Borrower, as promptly as possible thereafter, Borrower shall send to Lender an original official receipt, if available, or certified copy thereof showing payment of such Foreign Tax. Borrower hereby indemnifies Lender for any incremental taxes,
interest or penalties that may become payable by Lender which may result from any failure by Borrower to pay any such Foreign Tax when due to the appropriate taxing authority or any failure by Borrower to remit to Lender the required receipts or
other required documentary evidence. 
  
 (f) If
any requirement of law or any change therein or in the interpretation or application thereof, shall hereafter make it unlawful for Lender to make or maintain a LIBOR Loan as contemplated hereunder (i) the obligation of Lender hereunder to make a
LIBOR Loan or to convert a Prime Rate Loan to a LIBOR Loan shall be canceled forthwith, and (ii) any outstanding LIBOR Loan shall be converted automatically to a Prime Rate Loan on the next succeeding Payment Date or within such earlier period as
required by law. Borrower hereby agrees promptly to pay Lender, upon demand, any additional amounts necessary to compensate Lender for any costs incurred by Lender in making any conversion in accordance with this Agreement, including, without
limitation, any interest or fees payable by Lender to lenders of funds obtained by it in order to make or maintain the LIBOR Loan hereunder. Lender’s notice of such costs, as certified to Borrower, shall be conclusive absent manifest error.

  
 (g) In the event that any change in any
requirement of law or in the interpretation or application thereof, or compliance by Lender with any request or directive (whether or not having the force of law) hereafter issued from any central bank or other Governmental Authority: 
  

	 	(i)	shall hereafter impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, or deposits or other liabilities in or
for the account of, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of Lender which is not otherwise included in the determination of LIBOR hereunder; 

  

	 	(ii)	shall hereafter have the effect of reducing the rate of return on Lender’s capital as a consequence of its obligations hereunder to a level below that which Lender could have
achieved but for such adoption, change or compliance (taking into consideration Lender’s policies with respect to capital adequacy) by any amount deemed by Lender to be material; or 

  

	 	(iii)	shall hereafter impose on Lender any other condition and the result of any of the foregoing is to increase the cost to Lender of making, renewing or maintaining loans or extensions
of credit or to reduce any amount receivable hereunder; 

  

 27 

 then, in any such case, Borrower shall promptly pay Lender, upon demand, any additional amounts necessary to compensate
Lender for such additional cost or reduced amount receivable which Lender deems to be material as determined by Lender. If Lender becomes entitled to claim any additional amounts pursuant to this Section 2.2.3(g), Lender shall provide
Borrower with not less than ninety (90) days notice specifying in reasonable detail the event by reason of which it has become so entitled and the additional amount required to fully compensate Lender for such additional cost or reduced amount. A
certificate as to any additional costs or amounts payable pursuant to the foregoing sentence submitted by Lender to Borrower shall be conclusive in the absence of manifest error. This provision shall survive payment of the Note and the satisfaction
of all other obligations of Borrower under this Agreement and the Loan Documents. 
  
 (h) Borrower agrees to indemnify Lender and to hold Lender harmless from any loss or expense which Lender sustains or incurs as a
consequence of (i) any default by Borrower resulting in a loss or expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain a LIBOR Loan hereunder, (ii) any prepayment (whether voluntary or
mandatory) of the LIBOR Loan on a day that is not a Payment Date unless Borrower did not give the prior notice of such prepayment required pursuant to the terms of this Agreement, including, without limitation, such loss or expense arising from
interest or fees payable by Lender to lenders of funds obtained by it in order to maintain the LIBOR Loan hereunder, and (iii) the conversion (if such conversion is caused by any act or omission of Borrower) of the Applicable Interest Rate from
LIBOR plus the Spread to the Prime Rate plus the Prime Rate Spread with respect to any portion of the Outstanding Principal Balance then bearing interest at LIBOR plus the Spread on a date other than the Payment Date immediately following the last
day of an Interest Period, including, without limitation, such loss or expenses arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain a LIBOR Loan hereunder (the amounts referred to in clauses (i),
(ii) and (iii) are herein referred to collectively as the “Breakage Costs”); provided, however, Borrower shall not indemnify Lender from any loss or expense arising from Lender’s willful misconduct or gross
negligence. This provision shall survive payment of the Note in full and the satisfaction of all other obligations of Borrower under this Agreement and the other Loan Documents. 
  
 (i) Lender shall not be entitled to claim compensation pursuant to this Section 2.2.3 for any Foreign
Taxes, increased cost or reduction in amounts received or receivable hereunder, or any reduced rate of return, which was incurred or which accrued more than ninety (90) days before the date Lender notified Borrower of the change in law or other
circumstance on which such claim of compensation is based and delivered to Borrower a written statement setting forth in reasonable detail the basis for calculating the additional amounts owed to Lender under this Section 2.2.3, which
statement shall be conclusive and binding upon all parties hereto absent manifest error. 
  
 2.2.4 Additional Costs. Lender will use reasonable efforts (consistent with legal and regulatory restrictions) to maintain the
availability of the LIBOR Loan and to avoid or reduce any increased or additional costs payable by Borrower under Section 2.2.3, including, if requested by Borrower, a transfer or assignment of the Loan to a branch, office or Affiliate of
Lender in another jurisdiction, or a redesignation of its lending office with respect to the Loan, in order to maintain the availability of the LIBOR Loan or to avoid or reduce such increased or additional costs, provided that the transfer or
assignment or redesignation (a) would not result in 

  

 28 

 
any additional costs, expenses or risk to Lender that are not reimbursed by Borrower and (b) would not be disadvantageous in any other respect to Lender as
determined by Lender in its sole discretion. 
  
 2.2.5 Default Rate. In the event that, and for so long as, any Event of Default shall have occurred and be continuing, the Outstanding Principal Balance and, to the extent permitted by law, all accrued and unpaid interest in respect
of the Loan and any other amounts due pursuant to the Loan Documents, shall accrue interest at the Default Rate, calculated from the date such payment was due without regard to any grace or cure periods contained herein. 
  
 2.2.6 Usury Savings. This Agreement, the Note and the
other Loan Documents are subject to the express condition that at no time shall Borrower be obligated or required to pay interest on the principal balance of the Loan at a rate which could subject Lender to either civil or criminal liability as a
result of being in excess of the Maximum Legal Rate. If, by the terms of this Agreement or the other Loan Documents, Borrower is at any time required or obligated to pay interest on the principal balance due hereunder at a rate in excess of the
Maximum Legal Rate, the Applicable Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to the Maximum Legal Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed to have been
payments in reduction of principal and not on account of the interest due hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of the sums due under the Loan, shall, to the extent permitted by applicable
law, be amortized, prorated, allocated, and spread throughout the full stated term of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed the Maximum Legal Rate of interest from time to time
in effect and applicable to the Loan for so long as the Loan is outstanding. 
  
 2.2.7 Interest Rate Cap Agreement. 
  
 (a) On or before the earlier to occur of (y) September 1, 2004 or (z) the date which is two (2) weeks prior to the printing of the preliminary prospectus in connection with a Securitization (which date shall be
provided to Borrower at least five (5) Business Days in advance thereof), Borrower shall enter into an Interest Rate Cap Agreement with a LIBOR strike price equal to the Strike Price. The Interest Rate Cap Agreement (i) shall be in a form and
substance reasonably acceptable to Lender, (ii) shall be with an Acceptable Counterparty, (iii) shall direct such Acceptable Counterparty to deposit directly into the Property Account any amounts due Borrower under such Interest Rate Cap Agreement
so long as any portion of the Debt exists, provided, that, the Debt shall be deemed to exist if the Property is transferred by judicial or non-judicial foreclosure or deed-in-lieu thereof, (iv) shall be for a period equal to the term
of the Loan, and (v) shall have an initial notional amount equal to the principal balance of the Loan. Borrower shall collaterally assign to Lender, pursuant to the Collateral Assignment of Interest Rate Cap Agreement, all of its right, title and
interest to receive any and all payments under the Interest Rate Cap Agreement, and shall deliver to Lender an executed counterpart of such Interest Rate Cap Agreement (which shall, by its terms, authorize the assignment to Lender and require that
payments be deposited directly into the Property Account). 
  
 (b) Borrower shall comply with all of its obligations under the terms and provisions of the Interest Rate Cap Agreement. All amounts paid by the Counterparty under the 

  

 29 

 
Interest Rate Cap Agreement to Borrower or Lender shall be deposited immediately into the Property Account. Borrower shall take all actions reasonably
requested by Lender to enforce Lender’s rights under the Interest Rate Cap Agreement in the event of a default by the Counterparty and shall not waive, amend or otherwise modify any of its rights thereunder. 
  
 (c) In the event of any downgrade below “A+” (or
its equivalent), withdrawal or qualification of the rating of the Counterparty by S&P or Moody’s, Borrower shall replace the Interest Rate Cap Agreement with a Replacement Interest Rate Cap Agreement not later than ten (10) Business Days
following receipt of notice from Lender of such downgrade, withdrawal or qualification. 
  
 (d) In the event that Borrower fails to purchase and deliver to Lender the Interest Rate Cap Agreement or fails to maintain the Interest
Rate Cap Agreement in accordance with the terms and provisions of this Agreement, Lender may purchase the Interest Rate Cap Agreement and the cost incurred by Lender in purchasing such Interest Rate Cap Agreement shall be paid by Borrower to Lender
with interest thereon at the Default Rate from the date such cost was incurred by Lender until such cost is reimbursed by Borrower to Lender. 
  
 (e) In connection with the Interest Rate Cap Agreement, Borrower shall obtain and deliver to Lender an opinion from counsel (which counsel
may be in-house counsel for the Counterparty) for the Counterparty (upon which Lender and its successors and assigns may rely) which shall provide, in relevant part, that: 
  

	 	(i)	the Counterparty is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation and has the organizational power and authority to
execute and deliver, and to perform its obligations under, the Interest Rate Cap Agreement; 

  

	 	(ii)	the execution and delivery of the Interest Rate Cap Agreement by the Counterparty, and any other agreement which the Counterparty has executed and delivered pursuant thereto, and
the performance of its obligations thereunder have been and remain duly authorized by all necessary action and do not contravene any provision of its certificate of incorporation or by-laws (or equivalent organizational documents) or any law,
regulation or contractual restriction binding on or affecting it or its property; 

  

	 	(iii)	all consents, authorizations and approvals required for the execution and delivery by the Counterparty of the Interest Rate Cap Agreement, and any other agreement which the
Counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been obtained and remain in full force and effect, all conditions thereof have been duly complied with, and no other action by, and no
notice to or filing with any Governmental Authority or regulatory body is required for such execution, delivery or performance; and 

  

 30 

	 	(iv)	the Interest Rate Cap Agreement, and any other agreement which the Counterparty has executed and delivered pursuant thereto, has been duly executed and delivered by the Counterparty
and constitutes the legal, valid and binding obligation of the Counterparty, enforceable against the Counterparty in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally,
and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 

  
 Section 2.3 Loan Payment. 
  

2.3.1 Payments Generally. Borrower shall pay to Lender on each Payment Date the interest accrued on the Loan for the preceding
Interest Period (the “Monthly Interest Payment”). The first interest accrual period hereunder shall commence on and include the Closing Date and end on July 8, 2004. Each interest accrual period thereafter shall commence on the
ninth (9th) day of each calendar month during the term of the Loan and shall end on and include the eighth (8th) day of the next occurring calendar month. For purposes of making payments hereunder, but not for purposes of calculating interest
accrual periods, if the day on which such payment is due is not a Business Day, then amounts due on such date shall be due on the immediately preceding Business Day. With respect to payments of principal due on the Maturity Date, interest shall be
payable at the Applicable Interest Rate or the Default Rate, as the case may be, through and including the day immediately preceding such Maturity Date. All amounts due pursuant to this Agreement and the other Loan Documents shall be payable without
setoff, counterclaim, defense or any other deduction whatsoever. 
  
 2.3.2 Payment on Maturity Date. Borrower shall pay to Lender on the Maturity Date the Outstanding Principal Balance, all accrued and unpaid interest and all other amounts due hereunder and under the Note, the
Mortgage and the other Loan Documents. 
  
 2.3.3
Late Payment Charge. If any principal, interest or any other sums due under the Loan Documents, excluding the payment of principal due on the Maturity Date, is not paid by Borrower by the date on which it is due, Borrower shall pay to Lender
upon demand an amount equal to the lesser of (a) two percent (2%) of such unpaid sum, and (b) the maximum amount permitted by applicable law in order to defray the expense incurred by Lender in handling and processing such delinquent payment and to
compensate Lender for the loss of the use of such delinquent payment; provided, however, that with respect to two (2) delinquent payments during the term of the Loan, as the same may be extended, no such late charge shall be payable provided such
payment is made within five (5) days after the due date therefor and interest on such delinquent payments shall accrue at the Applicable Interest Rate calculated from the date such payment was due. Any such amount shall be secured by the Mortgage
and the other Loan Documents to the extent permitted by applicable law. 
  
 2.3.4 Method and Place of Payment. Except as otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender not later than 1:00 P.M., New York
City time, on the date when due and shall be made in lawful money of the United States of America in immediately available funds at Lender’s office 

  

 31 

 
or as otherwise directed by Lender, and any funds received by Lender after such time shall, for all purposes hereof, be deemed to have been paid on the next
succeeding Business Day. Any prepayments required to be made hereunder or under the Cash Management Agreement shall be deemed to have been timely made for the purposes of this Section 2.3.4. 
  
 Section 2.4 Prepayments. 
  
 2.4.1 Voluntary Prepayments. (a) The Loan may be
prepaid in whole only (but not in part) on any Payment Date, provided, that, with respect to any such prepayment (i) the Borrower shall give Lender thirty (30) days’ prior written notice of the Borrower’s intention to prepay
the Loan in full, (ii) subject to the terms of Section 2.4.1(b) below, all outstanding Other Loans together with all Other Borrower Obligations shall simultaneously be repaid in full subject to and in accordance with the applicable Other
Borrower Loan Documents and (iii) Borrower pays Lender, in addition to the Outstanding Principal Balance, (A) all interest as required herein; and (B) all other Debt payable under this Agreement, the Note, and the other Loan Documents, including,
but not limited to the Breakage Costs and all of Lender’s costs and expenses (including reasonable attorneys’ fees and disbursements) incurred by Lender in connection with such prepayment. Borrower shall have the right to withdraw any
prepayment notice at any time prior to such prepayment provided that Borrower shall pay to Lender all of Lender’s reasonable costs and expenses incurred in connection with the receipt of such notices. 
  
 (b) Notwithstanding the terms of clause (ii) of
Section 2.4.1(a) above, the Loan may be prepaid in whole only (but not in part) if the Property is sold in a bona fide arms-length, all-cash sale to a Person which is not a Related Party, provided, that: 
  

	 	(i)	the Borrower complies with the terms of Section 2.4.1(a) above (excluding clause (ii) thereof) in respect of such prepayment; 

  

	 	(ii)	the amount of such prepayment shall equal the Adjusted Release Amount; 

  

	 	(iii)	no Release Default or Event of Default shall have occurred and be continuing hereunder or under any other Loan Document; 

  

	 	(iv)	after giving effect to such release (including the amount prepaid in Section 2.4.1(a) above), the Aggregate Debt Service Coverage Ratio of the remaining Other Properties
shall equal or exceed the greater of (i) the Aggregate Debt Service Coverage Ratio for the twelve (12) full calendar months immediately preceding the Closing Date, or (ii) the Aggregate Debt Service Coverage Ratio for the twelve (12) full calendar
months immediately preceding the release of the Property for which financial statements are available; 

  

	 	(v)	In the event Borrower is the owner of an Other Property, the Property shall be conveyed to a Person other than Borrower; 

  

	 	(vi)	 The Adjusted Release Amount paid to Lender in connection with any such release shall be applied (i) first, to reduce the Debt to 

  

 32 

	 	 
zero, and (ii) second, pro rata to the Other Loans, immediately following such release. In connection with the release of the Mortgage and Second Mortgage as
permitted by this Section 2.5, Borrower shall submit to Lender, not less than ten (10) days prior to the date on which Borrower intends to pay the Loan in full, a release of Lien (and related Loan Documents), for the Property for execution by
Lender. Such release shall be in a form appropriate in the jurisdiction in which the Property is located and that would be satisfactory to a prudent lender; and 

  

	 	(vii)	Borrower shall have delivered to Lender an Officer’s Certificate in form reasonably acceptable to Lender certifying that no Release Default or Event of Default has occurred and
is continuing hereunder, under the Other Loan Documents or under the Other Borrower Loan Documents. 

  
 In the event any sums payable pursuant to Section 2.4 of the Other Loan Agreements are applied to reduce the Outstanding Principal Balance of this
Loan, no Prepayment Premium shall be payable in connection therewith. 
  
 2.4.2 Mandatory Prepayments. On the next occurring Payment Date following the date on which Lender actually receives any Net Proceeds, if Lender is not obligated to make such Net Proceeds available to Borrower
for Restoration, Borrower shall prepay, or authorize Lender to apply Net Proceeds as a prepayment of, the Outstanding Principal Balance in an amount equal to one hundred percent (100%) of such Net Proceeds. So long as no Event of Default has
occurred and is continuing, no Prepayment Premium shall be due in connection with any prepayment made pursuant to this Section 2.4.2 (such fee being expressly waived). 
  
 2.4.3 Prepayments After Default. If after the occurrence and during the continuance of an Event of
Default, payment of all or any part of the Debt is tendered by Borrower or otherwise recovered by Lender (including through application of any Reserve Funds), such tender or recovery shall be deemed (a) to have been made on the next occurring
Payment Date together with the Monthly Interest Payment, and (b) to be a voluntary prepayment by Borrower and Borrower shall pay, in addition to the Debt, an amount equal to the greater of (i) five percent (5%) of the Outstanding Principal Balance
or the portion thereof being prepaid or satisfied, and (ii) the Prepayment Premium, if any. 
  
 Section 2.5 Release of Property. (a) Except as set forth in this Section 2.5, no repayment or prepayment of all or any portion of the Loan
shall cause, give rise to a right to require, or otherwise result in, the release of the Liens of the Mortgage or the Second Mortgage. 
  
 (b) Lender shall promptly, upon the written request and at the sole cost and expense of Borrower, upon payment in full of all of the Debt
in accordance with the terms and provisions of the Note, this Agreement and the other Loan Documents and subject to and upon compliance with the terms of Section 2.4.1(b) hereof, release the Lien of the Mortgage and the Second Mortgage on the
Property. 
  

 33 

 (c) In connection with the release of the Mortgage and the Second Mortgage as permitted
by this Section 2.5, Borrower shall submit to Lender, not less than ten (10) days prior to the Payment Date on which Borrower intends to pay the Loan in full, releases of Lien (and related Loan Documents), for the Property for execution by
Lender. Such releases shall be in a form appropriate in the jurisdiction in which the Property is located and that would be satisfactory to a prudent lender. 
  
 Section 2.6 Cash Management. 
  
 2.6.1 Property Account. 
  
 (a) Borrower shall establish and maintain a segregated Eligible Account (the “Property Account”) with the Property
Account Bank maintained under Borrower’s control and direction during any period other than while a Sweep Event continues. Borrower (i) hereby grants to Lender a first priority security interest in the Property Account and all deposits at any
time contained therein and the proceeds thereof, and (ii) following and during any Sweep Event will take all actions necessary to maintain in favor of Lender a perfected first priority security interest in the Property Account, including, without
limitation, authorizing the filing of UCC-1 Financing Statements and continuations thereof. Borrower will not in any way alter or modify the Property Account and will notify Lender of the account number thereof. Other than during a Sweep Event,
Borrower shall have the sole right to make withdrawals from the Property Account and all reasonable costs and expenses for establishing and maintaining the Property Account shall be paid by Borrower. Upon the occurrence and continuation of a Sweep
Event, Lender shall have sole dominion and control over the Property Account and Borrower may not withdraw funds from the Property Account. 
  
 (b) Borrower shall, or shall cause Manager to, deposit all amounts received by Borrower or Manager constituting Rents into the Property
Account within one (1) Business Day after receipt thereof, provided, however, Borrower may retain, for its business operations at all times a sum not to exceed Twenty-Five Thousand and 00/100 ($25,000.00) in the aggregate in the Operating Account
(as defined in the Cash Management Agreement) and at the Property. In addition, on or before the Closing Date, Borrower shall, or shall cause Manager to, deliver irrevocable written instructions (each a “Payment Direction
Letter”) to each of the credit card companies or credit card clearing banks with which Borrower or Manager has entered into merchant’s agreements and to each account debtor of Borrower to deliver all Rents payable with respect
to the Property directly to the Property Account. 
  
 (c) During any Sweep Event, the Property Account shall be maintained under Lender’s sole control, dominion and direction. Pursuant to the terms of the Property Account Agreement, Property Account Bank shall transfer to the Cash
Management Account, in immediately available funds by federal wire all amounts on deposit in the Property Account each Business Day during a period that a Sweep Event exists. 
  
 (d) Upon request of Lender, Borrower shall deliver to Lender such evidence as Lender may reasonably request
to evidence that Borrower is complying with the provisions of Section 2.6.1. Without the prior written consent of Lender (not to be unreasonably withheld or delayed), neither Borrower nor its agents (including, without limitation, Manager) or
Affiliates 

  

 34 

 
shall (i) terminate, amend, revoke or modify any Payment Direction Letter in any manner or (ii) direct or cause any credit card company, credit card clearing
bank or account debtor to pay any amount in any manner other than as provided specifically in the related Payment Direction Letter. 
  
 (e) There are no accounts, other than the Property Account, maintained by Borrower or Manager or any other Person into which Rents from
the Property are initially deposited. So long as the Debt shall be outstanding, Borrower shall not and shall not permit any Person (other than Lender) to open any other such account for the initial deposit of Rents from the Property prior to the
deposit of such Rents in the Property Account. 
  
 (f) Borrower shall cause all payments made under the Interest Rate Cap Agreement or any Replacement Interest Rate Cap Agreement with respect to the Loan to be deposited into the Property Account. 
  
 2.6.2 Intentionally Omitted. 
  
 2.6.3 Cash Management Account. 
  
 (a) Borrower shall cooperate with Lender and Servicer in
connection with the establishment and maintenance of a segregated Eligible Account (the “Cash Management Account”) to be held by Servicer in trust for the benefit of Lender, which Cash Management Account shall be under the sole
dominion and control of Lender. The Cash Management Account shall be entitled “Column Financial, Inc., as Lender, pursuant to Loan Agreement dated as of June 21, 2004—Cash Management Account.” Borrower hereby (i) grants to Lender a
first priority security interest in the Cash Management Account and all deposits at any time contained therein and the proceeds thereof, and (ii) will take all actions necessary to maintain in favor of Lender a perfected first priority security
interest in the Cash Management Account, including, without limitation, authorizing the filing of UCC-1 Financing Statements and continuations thereof. Borrower will not in any way alter or modify the Cash Management Account and will notify Lender
of the account number thereof. Lender and Servicer shall have the sole right to make withdrawals from the Cash Management Account and all costs and expenses for establishing and maintaining the Cash Management Account shall be paid by Borrower.

  
 (b) After the occurrence and during the
continuance of a Sweep Event, on each Payment Date (or, if such Payment Date is not a Business Day, on the immediately preceding Business Day) all funds on deposit in the Cash Management Account shall be applied by Lender to the payment of the
following items in the order indicated: 
  

	 	(i)	First, payments in respect of the Tax and Insurance Escrow Funds in accordance with the terms and conditions of Section 7.2 hereof; 

  

	 	(ii)	Second, payment of the Monthly Interest Payment computed at the Applicable Interest Rate; 

  

	 	(iii)	Third, payments to the FF&E Reserve Funds in accordance with the terms and conditions of Section 7.3 hereof; 

  

 35 

	 	(iv)	Fourth, payments to the Ground Rent Reserve Funds in accordance with the terms and conditions of Section 7.4 hereof; 

  

	 	(v)	Fifth, payment to Lender of any other amounts then due and payable under the Loan Documents; 

  

	 	(vi)	Sixth, to the extent that, in respect of any Other Loan, there is, or Lender reasonably determines that there will be, a shortfall (each an “Other Loan Shortfall”)
during the relevant calendar month in the items referred to (x) in clauses (i)-(vi) of Section 2.6.3(b) of the applicable Other Loan Agreements, funds sufficient to pay such Other Loan Shortfall; 

  

	 	(vii)	Seventh, funds sufficient to pay Operating Expenses for the next calendar month pursuant to the Approved Annual Budget, other than expenses paid, or to be paid to, an Affiliated
Manager; 

  

	 	(viii)	Eighth, funds sufficient to pay Extraordinary Expenses approved by Lender and which are then due and payable, if any; 

  

	 	(ix)	Ninth, funds sufficient to pay Operating Expenses paid, or to be paid to, an Affiliated Manager for the next calendar month pursuant to the Approved Annual Budget; and

  

	 	(x)	Lastly, and so long as an Event of Default does not exist, payment of any excess amounts (“Excess Cash Flow”) to Borrower. 

  
 (c) The insufficiency of funds on deposit in the Cash
Management Account shall not relieve Borrower of the obligation to make any payments, as and when due pursuant to this Agreement and the other Loan Documents, and such obligations shall be separate and independent, and not conditioned on any event
or circumstance whatsoever. 
  
 (d) All funds on
deposit in the Cash Management Account following the occurrence of an Event of Default may be applied by Lender in such order and priority as Lender shall determine in its sole discretion. 
  
 2.6.4 Payments Received Under the Cash Management
Agreement. Notwithstanding anything to the contrary contained in this Agreement and the other Loan Documents, and provided no Event of Default has occurred and is continuing, Borrower’s obligations with respect to the monthly payment
of Debt Service and amounts due for the Tax and Insurance Escrow Funds, FF&E Reserve Funds, Ground Rent Reserve Funds, and any other payment reserves established pursuant to this Agreement or any other Loan Document shall be deemed satisfied to
the extent sufficient amounts are deposited in the Cash Management Account to satisfy such obligations on the dates each such payment is required, regardless of whether any of such amounts are so applied by Lender. 
  
 2.6.5 Application After Event of Default.
Notwithstanding anything to the contrary contained in this Section 2.6, upon the occurrence of an Event of Default, Lender, at its 

  

 36 

 
option, may withdraw the Reserve Funds and any other funds of Borrower then in the possession of Lender, Servicer or Property Account Bank and apply such
funds to the items for which the Reserve Funds were established or to the payment of the Obligations and the Other Borrower Obligations in such order, proportion and priority as Lender may determine in its sole discretion. Lender’s right to
withdraw and apply any of the foregoing funds shall be in addition to all other rights and remedies provided to Lender under the Loan Documents. 
  
 2.6.6 Quarterly Net Cash Flow Tests. In order to ascertain whether or not a Net Cash Flow Failure has occurred or has terminated,
Lender shall determine the Net Cash Flow as of the last day of each calendar quarter throughout the term of the Loan (each, a “Quarterly Net Cash Flow Test”), beginning September, 2004, each of which Quarterly Net Cash Flow Tests
and the determinations made with respect thereto shall be based on the information delivered in accordance with Section 5.1.11 hereof, together with any other evidence which Lender may reasonably require to substantiate or explain the
calculation of Net Cash Flow. Notwithstanding the foregoing, if the information required under Section 5.1.11 hereof is not delivered, the Net Cash Flow shall be determined in Lender’s sole discretion. 
  
 Section 2.7 Extension Options 
  
 2.7.1 First Extension Option. Borrower shall have the
right to extend the Initial Maturity Date to July 9, 2007 (the period commencing on the first (1st) day following the Initial Maturity Date and ending on July 9, 2007 being referred to herein as the “First Extension Term”),
provided, that: (a) Borrower shall have given Lender its written notice of such extension (an “Extension Notice”) not less than two (2) months nor more than six (6) months prior to the Initial Maturity Date; (b) the
Interest Rate Cap shall be in effect as of the date of the commencement of the First Extension Term (the “First Extension Commencement Date”) for the term of the Loan as extended and assigned to Lender; (c) no Event of Default shall
have occurred and be continuing at the time of the delivery of the Extension Notice with respect to the First Extension Term or on the First Extension Commencement Date; and (d) Borrower shall have delivered to Lender an Officer’s Certificate
in form reasonably acceptable to Lender certifying whether or not an Event of Default has occurred and is continuing, and if so, describing such Event of Default. 
  
 2.7.2 Second Extension Option. In the event that Borrower exercises the extension option for the
First Extension Term, Borrower shall have the right to further extend the Maturity Date to July 9, 2008 (the period commencing on the first (1st) day following the First Extension Term and ending on July 9, 2008 being referred to herein as the
“Second Extension Term”), provided, that: (a) Borrower shall have given Lender an Extension Notice not less than two (2) months nor more than six (6) months prior to the last day of the First Extension Term; (b) the
Interest Rate Cap shall be in effect as of the date of the Commencement of the Second Extension Term (the “Second Extension Commencement Date”) for the term of the Loan as extended and assigned to Lender; (c) no Event of
Default shall have occurred and be continuing at the time of the delivery of the Extension Notice with respect to the Second Extension Term or on the Second Extension Commencement Date; and (d) Borrower shall have delivered to Lender an
Officer’s Certificate in form reasonably acceptable to Lender certifying whether or not an Event of Default has occurred and is continuing, and if so, describing such Event of Default. 
  

 37 

 2.7.3 Third Extension Option. In the event that Borrower exercises the extension
option for the Second Extension Term, Borrower shall have the right to further extend the Maturity Date to July 9, 2009 (the period commencing on the first (1st) day following the Second Extension Term and ending on July 9, 2009 being referred to
herein as the “Third Extension Term”), provided, that: (a) Borrower shall have given Lender an Extension Notice not less than two (2) months nor more than six (6) months prior to the last day of the Second Extension
Term; (b) the Interest Rate Cap shall be in effect as of the date of the Commencement of the Third Extension Term (the “Third Extension Commencement Date”) for the term of the Loan as extended and assigned to Lender; (c) no
Event of Default shall have occurred and be continuing at the time of the delivery of the Extension Notice with respect to the Third Extension Term or on the Third Extension Commencement Date; and (d) Borrower shall have delivered to Lender an
Officer’s Certificate in form reasonably acceptable to Lender certifying whether or not an Event of Default has occurred and is continuing, and if so, describing such Event of Default. 
  
 Section 2.8 Substitution. Notwithstanding anything to the contrary set
forth in Section 2.4 hereof, Borrower may substitute (each a “Substitution”) a property (the “Substitute Property”) for the Property upon and subject to the following terms and conditions: 
  
 (a) There shall be no more than one (1) Substitution in the
aggregate with respect to the Property and the other Properties effected during the term of the Loan. 
  
 (b) Lender shall have received at least sixty (60) days prior written notice requesting the Substitution and identifying the Substitute
Property. 
  
 (c) The Substitute Property shall
be a fee parcel (and not subject to a ground lease) and used and operated as a hotel of like kind and quality as the hotel operated on the Property as of the Closing Date and shall have been completed lien-free and paid for in full in a good and
workmanlike manner and in compliance, in all material respects, with all applicable Legal Requirements. 
  
 (d) On the Substitution Date, the Loan (in such capacity the “Replaced Loan”) secured by the Mortgage and Second Mortgage
encumbering the Substitute Property shall be repaid in full and, subject to the terms hereof, Lender shall make a new Loan (simultaneously with the full repayment of the Replaced Loan) in an amount equal to the then principal balance of the Replaced
Loan (the “Substitution Loan”) to the owner (which shall qualify as a Qualified Borrower) of the Substitute Property (the “Substitute Borrower”). Notwithstanding the foregoing, at Lender’s election, the
foregoing may be affected by the Substitute Borrower assuming the Replaced Loan (in which event the Replaced Loan shall constitute a Substitution Loan) and the contemporaneous release of the applicable Borrower (the “Replaced
Borrower”) from its obligations in respect of the Replaced Loan. The Substitute Borrower shall execute and deliver a Joinder Acknowledgment and Substitution Loan shall constitute a Loan hereunder. 
  
 (e) (i) The appraised fair market value of the Substitute
Property shall be equal to or greater than the original appraised value of the Property as set forth in the appraisal delivered to Lender in connection with the closing of the Loan. The fair market value of the Property and Substitute Property shall
be determined by a firm of appraisers selected by 

  

 38 

 
Borrower and approved by Lender (which approval shall not be unreasonably withheld, delayed or conditioned) and based on an appraisal, dated not more than
ninety (90) days prior to the Substitution Date reasonably satisfactory to Lender. All costs of such appraisals shall be paid by Borrower on or prior to the Substitution Date. 
  

	 	(ii)	The actual Net Cash Flow relating to the Substitute Property (based upon the trailing twelve (12) month financial results or such shorter period, as Lender reasonably deems
appropriate, if the Substitute Property has been open for business for less than one year) shall equal or exceed the actual Net Cash Flow relating (based upon the trailing twelve (12) month financial results or such shorter period, as Lender
reasonably deems appropriate, if the Property has been open for business for less than one year) to the Property. 

  
 (f) Lender shall have received from Substitute Borrower and such other Persons as Lender deems reasonably appropriate a Mortgage, a Second
Mortgage, a Loan Agreement, a Note, an Equity Pledge Agreement, all other Loan Documents and Junior Lender Security Documents executed by Borrower, Guarantor and/or any other Person (all of which shall be substantially the form of the Loan Documents
executed in respect of the Loan with such changes thereto as Lender reasonably deems appropriate to reflect the circumstances of the Substitution) (collectively, the “Substitute Loan Documents”). 
  
 (g) The Substitute Loan Documents, financing statements, and
other instruments required to perfect the liens in the collateral contemplated thereby required by Lender shall have been recorded, registered and filed (as applicable) in such manner as may be required by law to create a valid, perfected lien and
security interest with respect to the Substitute Property and the personal property related thereto. 
  
 (h) The liens created by the Substitute Loan Documents shall be first liens and prior security interests on the Substitute Property and
the personal property related thereto (other than the Second Mortgage), subject only to such exceptions as Lender shall approve in its sole discretion. 
  
 (i) Upon the closing of the Substitute Property (the “Substitution Date”), the Borrower shall have good and marketable
title to the Substitute Property, and good and valid title to any personal property located thereon or used in connection therewith, in each case satisfactory to the Lender. 
  
 (j) Lender shall, at Borrower’s sole cost and expense, receive and approve all Additional Due Diligence
Materials. 
  
 (k) Lender shall have received (x)
a confirmation of all Loan Documents executed by Guarantor and a consent to such Substitution by Guarantor, (y) a confirmation of all guaranties executed by the Other Borrowers and all pledges executed by the pledgors thereof and a consent to such
Substitution by the Other Borrowers and pledgors, and (z) such other instruments and agreements and such certificates and opinions of counsel, in form and substance 

  

 39 

 
reasonably satisfactory to Lender in connection with such Substitution as it may reasonably request. 
  
 (l) The Substitute Property shall be located within the
continental United States. 
  
 (m) No Default or
Event of Default shall have occurred and be continuing hereunder, under any other Loan Document or under the Other Borrower Loan Documents on the Substitution Date, and Borrower shall have delivered to Lender an Officer’s Certificate in form
reasonably acceptable to Lender certifying to same. 
  
 (n) Borrower shall pay all reasonable out-of-pocket costs and expenses incurred in connection with any such Substitution and the reasonable out-of-pocket fees and expenses incurred by Lender and Servicer in connection therewith. Without
limiting the generality of the foregoing, Borrower shall, in connection with, and as a condition to, a Substitution, pay the reasonable fees and expenses of Lender’s attorneys, the reasonable fees and expenses of Lender’s engineers,
appraisers, construction consultants, insurance consultants and other due diligence consultants and contractors, recording charges, title insurance charges, and stamp and/or mortgage or similar taxes, transfer taxes. 
  
 (o) Lender shall have received such assurances and
confirmations from the Rating Agencies that the Substitution shall not result in a downgrading, withdrawal or qualification of any rating assigned or the preliminary or indicative rating to be assigned to any securities issued in connection with any
Securitization. 
  
 (p) Lender shall be satisfied
that the Substitution shall not constitute a preference or fraudulent conveyance or that the Substitution is structured in such a manner as to avoid said risks. 
  
 (q) A Net Cash Flow Failure shall not be in effect on the Substitution Date. 
  
 (r) On or before the Substitution Date, all conditions
precedent with respect to the Replaced Loan shall be satisfied with respect to the Substitute Loan, including, without limitation, delivery of Title Policies with respect to the Substitute Property. 
  
 ARTICLE 3 
  
 CONDITIONS PRECEDENT 
  

Section 3.1 Conditions Precedent to Closing. The obligation of Lender to make the Loan hereunder is subject to the fulfillment by Borrower, or
waiver by Lender, of the following conditions precedent no later than the Closing Date: 
  
 3.1.1 Representations and Warranties; Compliance with Conditions. The representations and warranties of Borrower contained in this
Agreement and the other Loan Documents shall be true and correct in all material respects on and as of the Closing Date with the same effect as if made on and as of such date, and no Default or Event of Default shall have occurred and be continuing;
and Borrower shall be in compliance in all material respects with all 

  

 40 

 
terms and conditions set forth in this Agreement and in each other Loan Document on its part to be observed or performed. 
  
 3.1.2 Loan Agreement and Note. Lender shall have
received a copy of this Agreement and the Note, in each case, duly executed and delivered on behalf of Borrower. 
  
 3.1.3 Delivery of Loan Documents; Title Insurance; Reports; Leases. 
  
 (a) Mortgage, Assignment of Leases. Lender shall have received from Borrower fully executed and
acknowledged counterparts of the Mortgage, the Second Mortgage and the Assignment of Leases and evidence that counterparts of the Mortgage, the Second Mortgage and Assignment of Leases have been delivered to the Title Company for recording, in the
reasonable judgment of Lender, so as to effectively create upon such recording valid and enforceable Liens upon the Property, of the requisite priority, in favor of Lender (or such trustee as may be required or desired under local law), subject only
to the Permitted Encumbrances and such other Liens as are permitted pursuant to the Loan Documents. Lender shall have also received from Borrower fully executed counterparts of the other Loan Documents. 
  
 (b) Title Insurance. Lender shall have received Title
Insurance Policies with respect to the Mortgage and the Second Mortgage issued by the Title Company and dated as of the Closing Date, with reinsurance and direct access agreements acceptable to Lender. Such Title Insurance Policies shall (i) provide
coverage in amounts satisfactory to Lender, (ii) insure Lender that the Mortgage and the Second Mortgage, as applicable, creates a valid lien on the Property encumbered thereby of the requisite priority, free and clear of all exceptions from
coverage other than Permitted Encumbrances and standard exceptions and exclusions from coverage (as modified by the terms of any endorsements), (iii) contain such endorsements and affirmative coverages as Lender may reasonably request, (iv) name
Lender and its successors and assigns as the insured. The Title Insurance Policies shall be assignable, to the extent permitted under applicable state law. Lender also shall have received evidence that all premiums in respect of such Title Insurance
Policies have been paid, and (v) with respect to the Second Mortgage, tie-in and first loss endorsements to the extent available in the State where the Property is located. 
  
 (c) Survey. Lender shall have received a current Survey, certified to the title company and Lender
and their successors and assigns, in form and content satisfactory to Lender and prepared by a professional and properly licensed land surveyor satisfactory to Lender in accordance with the Accuracy Standards for ALTA/ACSM Land Title Surveys as
adopted by ALTA, American Congress on Surveying & Mapping and National Society of Professional Surveyors in 1999. The Survey shall reflect the same legal description contained in the Title Insurance Policy and shall include, among other things,
a metes and bounds description of the real property comprising part of the Property reasonably satisfactory to Lender. The surveyor’s seal shall be affixed to the Survey and the surveyor shall provide a certification for the Survey in form and
substance acceptable to Lender. 
  
 (d)
Insurance. Lender shall have received valid certificates of insurance for the Policies required hereunder, satisfactory to Lender in its sole discretion, and evidence of the payment of all Insurance Premiums payable for the existing policy
period. 
  

 41 

 (e) Environmental Reports. Lender shall have received a Phase I environmental
report (and, if recommended by the Phase I environmental report, a Phase II environmental report) in respect of the Property, satisfactory in form and substance to Lender. 
  
 (f) Zoning. Lender shall have received, at Lender’s option, either (i) (A) letters or other
evidence with respect to the Property from the appropriate municipal authorities (or other Persons) concerning applicable zoning and building laws, or (B) an ALTA 3.1 zoning endorsement for the Title Insurance Policy, or (ii) a zoning opinion
letter, in each case in substance reasonably satisfactory to Lender. 
  
 (g) Encumbrances. Borrower shall have taken or caused to be taken such actions in such a manner so that Lender has a valid and perfected first priority Lien as of the Closing Date with respect to the Mortgage,
subject only to applicable Permitted Encumbrances and such other Liens as are permitted pursuant to the Loan Documents, and Lender shall have received satisfactory evidence thereof. 
  
 3.1.4 Related Documents. Each additional document not specifically referenced herein, but relating to
the transactions contemplated herein, shall be in form and substance reasonably satisfactory to Lender, and shall have been duly authorized, executed and delivered by all parties thereto and Lender shall have received and approved certified copies
thereof. 
  
 3.1.5 Delivery of Organizational
Documents. (a) Borrower shall deliver or cause to be delivered to Lender copies certified by Borrower of all organizational documentation related to Borrower and/or its formation, structure, existence, good standing and/or qualification to do
business, as Lender may request in its sole discretion, including, without limitation, good standing certificates, qualifications to do business in the appropriate jurisdictions, resolutions authorizing the entering into of the Loan and incumbency
certificates as may be requested by Lender. 
  
 (b) Borrower shall deliver or cause to be delivered to Lender copies certified by Borrower of all organizational documentation related to Principal, Guarantor, and other members and/or partners of Borrower, and/or the formation, structure,
existence, good standing and/or qualification to do business of any of the foregoing, as Lender may request in its sole discretion, including, without limitation, good standing certificates, qualifications to do business in the appropriate
jurisdictions, authorizing resolutions and incumbency certificates as may be requested by Lender. 
  
 3.1.6 Opinions of Borrower’s Counsel. Lender shall have received opinions from Borrower’s counsel with respect to
non-consolidation and the due execution, authority, enforceability of the Loan Documents and such other matters as Lender may require, all such opinions in form, scope and substance satisfactory to Lender and Lender’s counsel in their sole
reasonable discretion. 
  
 3.1.7 Intentionally
Omitted. 
  
 3.1.8 Basic Carrying
Costs. Borrower shall have paid all Basic Carrying Costs relating to the Property which are in arrears, including without limitation, (a) accrued but unpaid 

  

 42 

 
Insurance Premiums, (b) currently due Taxes (including any in arrears) and (c) currently due Other Charges, which amounts shall be funded with proceeds of
the Loan. 
  
 3.1.9 Completion of
Proceedings. All corporate and other proceedings taken or to be taken in connection with the transactions contemplated by this Agreement and the other Loan Documents and all documents incidental thereto shall be satisfactory in form and
substance to Lender, and Lender shall have received all such counterpart originals or certified copies of such documents as Lender may reasonably request. 
  
 3.1.10 Payments. All payments, deposits or escrows required to be made or established by Borrower under this Agreement, the Note
and the other Loan Documents on or before the Closing Date shall have been paid. 
  
 3.1.11 Estoppels. Lender shall have received an executed estoppel letter, which shall be in form and substance satisfactory to
Lender, from Ground Lessor. 
  
 3.1.12
Transaction Costs. Borrower shall have paid or reimbursed Lender for all title insurance premiums, recording and filing fees, costs of environmental reports, Physical Conditions Reports, appraisals and other reports, the fees and costs of
Lender’s counsel and all other third party out-of-pocket expenses reasonably incurred in connection with the origination of the Loan. 
  
 3.1.13 Leases and Rent Roll. Lender shall have received copies of all Leases and certified copies of any Leases as requested by
Lender. Lender shall have received a current certified rent roll of the Property, reasonably satisfactory in form and substance to Lender. 
  
 3.1.14 Tax Lot. Lender shall have received evidence that the Property constitutes one (1) or more separate tax lots, which evidence
shall be satisfactory in form and substance to Lender. 
  
 3.1.15 Physical Conditions Report. Lender shall have received a Physical Conditions Report, which report shall be satisfactory in form and substance to Lender. 
  
 3.1.16 Management Agreement. Lender shall have received a copy of the Management Agreement, which
shall be reasonably satisfactory in form and substance to Lender. 
  
 3.1.17 Appraisal. Lender shall have received an appraisal of the Property, which shall be satisfactory in form and substance to Lender. 
  
 3.1.18 Financial Statements. Lender shall have received a balance sheet with respect to the Property
for the two (2) most recent Fiscal Years (audited, if available), each in form and substance satisfactory to Lender. 
  
 3.1.19 Further Documents. Lender or its counsel shall have received such other and further approvals, opinions, documents and
information as Lender or its counsel may have reasonably requested including the Loan Documents in form and substance satisfactory to Lender and its counsel. 
  

 43 

 3.1.20 Other Loans. All conditions precedent to the closing of each of the Other
Loans shall have been satisfied, as determined by Lender in its sole discretion, and each Other Loan shall have closed or shall close simultaneously with the closing of the Loan. 
  
 ARTICLE 4 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Section 4.1 Borrower Representations. Borrower represents and warrants as of the date hereof and as of the Closing Date that: 
  
 4.1.1 Organization. Borrower has been duly organized
and is validly existing and in good standing with requisite power and authority to own its properties and to transact the businesses in which it is now engaged. Borrower is duly qualified to do business and is in good standing in each jurisdiction
where it is required to be so qualified in connection with its properties, businesses and operations. Borrower possesses all rights, licenses, permits and authorizations, governmental or otherwise, necessary to entitle it to own its properties and
to transact the businesses in which it is now engaged, and the sole business of Borrower is the ownership, management and operation of the Property. The ownership interests of Borrower are as set forth on the organizational chart attached hereto as
Schedule III. 
  
 4.1.2
Proceedings. Borrower has taken all necessary action to authorize the execution, delivery and performance of this Agreement and the other Loan Documents. This Agreement and the other Loan Documents have been duly executed and delivered by or
on behalf of Borrower and constitute the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, subject only to applicable bankruptcy, insolvency and similar laws affecting rights of
creditors generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 
  
 4.1.3 No Conflicts. The execution, delivery and performance of this Agreement and the other Loan
Documents by any Significant Party, as applicable, will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance (other
than pursuant to the Loan Documents) upon any of the property or assets of Borrower pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, partnership agreement, management agreement or other agreement or instrument to
which Borrower is a party or by which any of Borrower’s property or assets is subject, nor will such action result in any violation of the provisions of any statute or any order, rule or regulation of any Governmental Authority having
jurisdiction over Borrower or any of Borrower’s properties or assets, and any consent, approval, authorization, order, registration or qualification of or with any such Governmental Authority required for the execution, delivery and performance
by any Significant Party, as applicable, of this Agreement or any other Loan Documents has been obtained and is in full force and effect. 
  
 4.1.4 Litigation. There are no actions, suits or proceedings at law or in equity by or before any Governmental Authority or other
agency now pending or, to Borrower’s knowledge, threatened against or affecting any Significant Party or the Property, which actions, 

  

 44 

 
suits or proceedings, if determined against such Significant Party or the Property, are reasonably likely to have a Material Adverse Effect. 
  
 4.1.5 Agreements. Borrower is not a party to any
agreement or instrument or subject to any restriction which might materially and adversely affect Borrower or the Property, or Borrower’s business, properties or assets, operations or condition, financial or otherwise. Borrower is not in
default in any material respect in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument to which it is a party or by which Borrower or the Property are bound. Borrower
has no material financial obligation under any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which Borrower is a party or by which Borrower or the Property is otherwise bound, other than (a) any obligations
incurred in the ordinary course of the operation of the Property as permitted pursuant to clause (s) of the definition of “Special Purpose Entity” set forth in Section 1.1 hereof, (b) the obligations under the Loan Documents.

  
 4.1.6 Title. (a) Borrower has good,
marketable and insurable leasehold title to the Property, free and clear of all Liens whatsoever except the Permitted Encumbrances, such other Liens as are permitted pursuant to the Loan Documents and the Liens created by the Loan Documents. The
Permitted Encumbrances in the aggregate do not materially and adversely affect the value, operation or use of the Property (as currently used) or Borrower’s ability to repay the Loan. The Mortgage and the Assignment of Leases, when properly
recorded in the appropriate records, together with any Uniform Commercial Code financing statements required to be filed in connection therewith, will create (a) a valid, perfected first priority lien on the Property, subject only to Permitted
Encumbrances and the Liens created by the Loan Documents, and (b) perfected security interests in and to, and perfected collateral assignments of, all personalty (including the Leases), all in accordance with the terms thereof, in each case subject
only to any applicable Permitted Encumbrances, such other Liens as are permitted pursuant to the Loan Documents and the Liens created by the Loan Documents. There are no claims for payment for work, labor or materials affecting the Property which
are or may become a Lien prior to, or of equal priority with, the Liens created by the Loan Documents. 
  
 (b) The Second Mortgage, when properly recorded in the appropriate public records, together with any Uniform Commercial Code financing
statements required to be filed in connection therewith, will create (i) a valid, perfected second priority Lien on the Property, subject only to Permitted Encumbrances and the Lien of the Mortgage and (ii) perfected security interests in and to,
and perfected collateral assignments of, all Personal Property (including the Leases), all in accordance with the terms thereof, in each case subject only to the Mortgage and any applicable Permitted Encumbrances to the extent that perfection occurs
through the recording of a Mortgage or the filing of a financing statement. 
  
 4.1.7 Solvency. Borrower has (a) not entered into the transaction contemplated by this Agreement or executed the Note, this Agreement or any other Loan Documents with the actual intent to hinder, delay or
defraud any creditor and (b) received reasonably equivalent value in exchange for its obligations under such Loan Documents. After giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following
the making of the Loan, exceed Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed and contingent liabilities. The fair saleable value of 

  

 45 

 
Borrower’s assets is and will, immediately following the making of the Loan, be greater than Borrower’s probable liabilities, including the maximum
amount of its contingent liabilities on its debts as such debts become absolute and matured. Borrower’s assets do not and, immediately following the making of the Loan will not, constitute unreasonably small capital to carry out its business as
conducted or as proposed to be conducted. Borrower does not intend to, and does not believe that it will, incur debts and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such debts and liabilities as
they mature (taking into account the timing and amounts of cash to be received by Borrower and the amounts to be payable on or in respect of the obligations of Borrower). No petition in bankruptcy has been filed against Borrower or any of its
constituent Persons, and neither Borrower nor any of its constituent Persons has ever made an assignment for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. Neither Borrower nor any of its constituent
Persons are contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of Borrower’s assets or properties, and Borrower has no knowledge of any
Person contemplating the filing of any such petition against it or any of its constituent Persons. 
  
 4.1.8 Full and Accurate Disclosure. No statement of fact made by Borrower in this Agreement or in any of the other Loan Documents
contains any untrue statement of a material fact or omits to state any material fact necessary to make statements contained herein or therein not misleading. There is no material fact presently known to Borrower which has not been disclosed to
Lender which adversely affects, nor as far as Borrower can foresee, might adversely affect, the Property or the business, operations or condition (financial or otherwise) of Borrower. 
  
 4.1.9 No Plan Assets. Borrower is not an “employee benefit plan,” as defined in Section
3(3) of ERISA, subject to Title I of ERISA, and none of the assets of Borrower constitutes or will constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101. In addition, (a) Borrower is not a
“governmental plan” within the meaning of Section 3(32) of ERISA, and (b) transactions by or with Borrower are not subject to any state statute regulating investments of, or fiduciary obligations with respect to, governmental plans similar
to the provisions of Section 406 of ERISA or Section 4975 of the Code currently in effect, which prohibit or otherwise restrict the transactions contemplated by this Agreement. 
  
 4.1.10 Compliance. Borrower and the Property (including the use thereof) comply in all material
respects with all applicable Legal Requirements, including, without limitation, building and zoning ordinances and codes. Borrower is not in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority. There
has not been committed by Borrower, to Borrower’s knowledge, or any other Person in occupancy of or involved with the operation or use of the Property any act or omission affording any Governmental Authority the right of forfeiture as against
the Property or any part thereof or any monies paid in performance of Borrower’s obligations under any of the Loan Documents. 
  
 4.1.11 Financial Information. All financial data, including, without limitation, the statements of cash flow and income and
operating expense, that have been delivered to Lender in connection with the Loan (i) fairly and accurately represent the financial condition of the Significant Parties and the Property as of the date of such reports, and (iii) to the extent 

  

 46 

 
audited by an independent certified public accounting firm, have been prepared in accordance with GAAP throughout the periods covered, except as disclosed
therein. Except for Permitted Encumbrances, Borrower does not have any contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments that are known to
Borrower and reasonably likely to have a Material Adverse Effect on the Property or the operation thereof as a hotel, except as referred to or reflected in said financial statements. Since the date of such financial statements, there has been no
material adverse change in the financial condition, operation or business of Borrower from that set forth in said financial statements. 
  
 4.1.12 Condemnation. No Condemnation or other proceeding has been commenced or, to Borrower’s knowledge, is threatened or
contemplated with respect to all or any portion of the Property or for the relocation of any roadway providing access to the Property. 
  
 4.1.13 Federal Reserve Regulations. No part of the proceeds of the Loan will be used for the purpose of purchasing or acquiring any
“margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors, or
for any purposes prohibited by any Legal Requirements or by the terms and conditions of this Agreement or the other Loan Documents. 
  
 4.1.14 Utilities and Public Access. The Property has rights of access to public ways and is served by water, sewer, sanitary sewer
and storm drain facilities adequate to service the Property for its intended uses. All public utilities necessary or convenient to the full use and enjoyment of the Property are located either in the public right-of-way abutting the Property (which
are connected so as to serve the Property without passing over other property) or in recorded easements serving the Property and such easements are set forth in and insured by the Title Insurance Policy. All roads necessary for the use of the
Property for its current purpose have been completed and dedicated to public use and accepted by all Governmental Authorities. 
  
 4.1.15 Not a Foreign Person. Borrower is not a “foreign person” within the meaning of §1445(f)(3) of the Code.

  
 4.1.16 Separate Lots. The Property is
comprised of one (1) or more parcels which constitute a separate tax lot or lots and does not constitute a portion of any other tax lot not a part of the Property. 
  
 4.1.17 Assessments. To Borrower’s knowledge, there are (a) no pending or proposed special or
other assessments for public improvements or otherwise affecting the Property, and (ii) no contemplated improvements to the Property that may result in such special or other assessments. 
  
 4.1.18 Enforceability. The Loan Documents are not subject to any right of rescission, set-off,
counterclaim or defense by Borrower, Principal or Guarantor, including the defense of usury, nor would the operation of any of the terms of the Loan Documents, or the exercise of any right thereunder, render the Loan Documents unenforceable (subject
to principles of equity and bankruptcy, insolvency and other laws generally affecting creditors’ rights and the 

  

 47 

 
enforcement of debtors’ obligations), and Borrower, Principal and Guarantor have not asserted any right of rescission, set-off, counterclaim or defense
with respect thereto. 
  
 4.1.19 No Prior
Assignment. There are no prior assignments of the Leases or any portion of the Rents due and payable or to become due and payable which are presently outstanding. 
  
 4.1.20 Insurance. Borrower has obtained and has delivered to Lender valid certificates of insurance
evidencing the Policies along with evidence satisfactory to Lender of the payment in full of all premiums required thereunder. No claims have been made under any such Policies, and no Person, including Borrower, has done, by act or omission,
anything which would impair the coverage of any such Policies. Borrower shall use commercially reasonable efforts to obtain and deliver to Lender certified copies of the Policies as soon as practicable after the date of this Agreement. 

 
 4.1.21 Use of Property. The Property is used
exclusively as a hotel and other appurtenant and related uses. 
  
 4.1.22 Certificate of Occupancy; Licenses. All material certifications, permits, licenses and approvals, including without limitation, certificates of completion and occupancy permits, required for the legal
use, occupancy and/or operation of the Property as a hotel (collectively, the “Licenses”), have been obtained and are in full force and effect. Borrower shall keep and maintain all Licenses necessary for the operation of the
Property as a hotel. The use being made of the Property is in conformity in all material respects with the certificate of occupancy issued for the Property. 
  
 4.1.23 Flood Zone. None of the Improvements on the Property are located in an area identified by the Federal Emergency Management
Agency as an area having special flood hazards or, if so located, the flood insurance required pursuant to Section 6.1(a)(i) hereof is in full force and effect with respect to the Property. 
  
 4.1.24 Physical Condition. The Property, including,
without limitation, all buildings, improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment, elevators, exterior sidings and doors,
landscaping, irrigation systems and all structural components are in good condition, order and repair in all material respects. Other than as disclosed in the “Engineering Report,” there exists no structural or other material defects or
damages in the Property, whether latent or otherwise, and Borrower has not received notice from any insurance company or bonding company of any defects or inadequacies in the Property, or any part thereof, which would adversely affect the
insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond. 
  
 4.1.25 Boundaries. All of the Improvements which were included in determining the appraised value of
the Property lie wholly within the boundaries and building restriction lines of the Property, and no improvements on adjoining properties encroach upon the Property, and no easements or other encumbrances upon the Property encroach upon any of the
Improvements, 

  

 48 

 
so as to affect the value or marketability of the Property except those which are insured against by the Title Insurance Policy. 
  
 4.1.26 Leases. The Property is not subject to any
Leases other than the Leases described in Schedule I attached hereto and made a part hereof. No Person has any possessory interest in the Property or right to occupy the same except under and pursuant to the provisions of the Leases or as
hotel guests, customers or invitees in the ordinary course of business at the Property. The current Leases are in full force and effect and there are no defaults thereunder by either party and there are no conditions that, with the passage of time
or the giving of notice, or both, would constitute defaults thereunder. The copies of the Leases delivered to Lender are true and complete, and there are no oral agreements with Borrower with respect thereto; (Lender acknowledges and agrees that
Borrower has no obligation to deliver copies of Leases under 5,000 square feet unless specifically so requested by Lender). No Rent (including security deposits) has been paid more than one (1) month in advance of its due date. All work to be
performed by Borrower under each Lease has been performed as required in such Lease and has been accepted by the applicable tenant, and any payments, free rent, partial rent, rebate of rent or other payments, credits, allowances or abatements
required to be given by Borrower to any tenant has already been received by such tenant. There has been no prior sale, transfer or assignment, hypothecation or pledge of any Lease or of the Rents received therein which is still in effect. No tenant
listed on Schedule I has assigned its Lease or sublet all or any portion of the premises demised thereby, no such tenant holds its leased premises under assignment or sublease, nor does anyone except such tenant and its employees occupy such
leased premises. No tenant under any Lease has a right or option pursuant to such Lease or otherwise to purchase all or any part of the Property of which the leased premises are a part. No tenant under any Lease has any right or option for
additional space in the Improvements. 
  
 4.1.27
Survey. The Survey for the Property delivered to Lender in connection with this Agreement has been prepared in accordance with the provisions of Section 3.1.3(c) hereof, and does not fail to reflect any material matter affecting the
Property or the title thereto. 
  
 4.1.28
Principal Place of Business; State of Organization. Borrower’s principal place of business as of the date hereof is the address set forth in the introductory paragraph of this Agreement. The Borrower is organized under the laws of the
State of Delaware. 
  
 4.1.29 Filing and
Recording Taxes. All transfer taxes, deed stamps, intangible taxes or other amounts in the nature of transfer taxes required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the transfer of the
Property to Borrower have been paid. All mortgage, mortgage recording, stamp, intangible or other similar tax required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the execution, delivery,
recordation, filing, registration, perfection or enforcement of any of the Loan Documents, including, without limitation, the Mortgage and the Second Mortgage, have been paid or are being paid simultaneously herewith, and the Mortgage and the Second
Mortgage and the other Loan Documents have been validly executed and delivered and are enforceable in accordance with their respective terms by Lender (or any subsequent holder thereof), subject to principles of equity and bankruptcy, insolvency and
other laws generally applicable to creditors’ rights and the enforcement of debtors’ obligations. 
  

 49 

 4.1.30 Special Purpose Entity/Separateness. 
  
 (a) Until the Debt has been paid in full, Borrower hereby
represents, warrants and covenants that (i) Borrower is, shall be and shall continue to be a Special Purpose Entity, and (ii) Principal is, shall be and shall continue to be a Special Purpose Entity. 
  
 (b) The representations, warranties and covenants set forth
in Section 4.1.30(a) shall survive for so long as any amount remains payable to Lender under this Agreement or any other Loan Document. 
  
 (c) All of the assumptions made in the Insolvency Opinion, including, but not limited to, any exhibits attached thereto, are true and
correct in all respects material to the opinions set forth therein and any assumptions made in any subsequent non-consolidation opinion required to be delivered in connection with the Loan Documents (an “Additional Insolvency
Opinion”), including, but not limited to, any exhibits attached thereto, will have been and shall be true and correct in all respects. Borrower has complied and will comply with, and Principal has complied and Borrower will cause Principal
to comply with, all of the assumptions made with respect to Borrower and Principal in the Insolvency Opinion. Borrower will, and shall cause Principal to, have complied and will comply with all of the assumptions made with respect to Borrower and
Principal in any Additional Insolvency Opinion. Each entity other than Borrower and Principal with respect to which an assumption shall be made in any Additional Insolvency Opinion will have complied and will comply with all of the assumptions made
with respect to it in any Additional Insolvency Opinion. 
  
 4.1.31 Management Agreement. The Management Agreement is in full force and effect and there is no default continuing beyond applicable grace or cure periods thereunder by any party thereto and no event has
occurred that, with the passage of time and/or the giving of notice would constitute a default thereunder. 
  
 4.1.32 Illegal Activity. To Borrower’s knowledge, no portion of the Property has been or will be purchased with proceeds of
any illegal activity. 
  
 4.1.33 No Change in
Facts or Circumstances; Disclosure. All information submitted by Borrower to Lender including, but not limited to, rent rolls, reports, certificates and other documents submitted in connection with the Loan or in satisfaction of the terms
thereof and all statements of fact made by Borrower in this Agreement or in any other Loan Document, are accurate, complete and correct in all material respects. There has been no material adverse change in any condition, fact, circumstance or event
that would make any such information inaccurate, incomplete or otherwise misleading in any material respect or that otherwise is reasonably likely to have a Material Adverse Effect. Borrower has disclosed to Lender all material facts and has not
failed to disclose any material fact that could cause any Provided Information or representation or warranty made herein to be materially misleading. 
  
 4.1.34 Investment Company Act. Borrower is not (a) an “investment company” or a company “controlled” by an
“investment company,” within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a
“holding company” or a “subsidiary company” 

  

 50 

 
within the meaning of the Public Utility Holding Company Act of 1935, as amended; or (c) subject to any other federal or state law or regulation which
purports to restrict or regulate its ability to borrow money. 
  
 4.1.35 Embargoed Person. At all times throughout the term of the Loan, including after giving effect to any Transfers permitted pursuant to the Loan Documents, (a) none of the funds or other assets of Borrower
or Principal shall constitute property of, or shall be beneficially owned, directly or indirectly, by any Person subject to trade restrictions under United States law, including, but not limited to, the International Emergency Economic Powers Act,
50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated under any such United States laws, with the result that the investment in Borrower or Principal, as
applicable (whether directly or indirectly), is or would be prohibited by law (each, an “Embargoed Person”) or the Loan made by Lender is or would be in violation of law; (b) no Embargoed Person shall have any interest of any nature
whatsoever in Borrower or Principal, as applicable, with the result that the investment in Borrower or Principal, as applicable (whether directly or indirectly), is or would be prohibited by law or the Loan is or would be in violation of law; and
(c) none of the funds of Borrower, Principal or Guarantor, as applicable, shall be derived from any unlawful activity by Borrower, Principal or Guarantor with the result that the investment in Borrower, Principal or Guarantor, as applicable (whether
directly or indirectly), is or would be prohibited by law or the Loan is or would be in violation of law. 
  
 4.1.36 Cash Management Account. 
  
 (a) This Agreement, together with the other Loan Documents, creates a valid and continuing security interest (as defined in the Uniform
Commercial Code of the State of Delaware) in the Property Account and Cash Management Account in favor of Lender, which security interest is prior to all other Liens, other than Permitted Encumbrances, and is enforceable as such against creditors of
and purchasers from Borrower. Other than in connection with the Loan Documents and except for Permitted Encumbrances, Borrower has not sold or otherwise conveyed the Property Account and Cash Management Account; 
  
 (b) Intentionally Omitted. 
  
 (c) Pursuant and subject to the terms hereof, the Property
Account Bank has agreed to comply with all instructions originated by Lender and Borrower, as applicable, without further consent by Borrower, directing disposition of the Property Account and all sums at any time held, deposited or invested
therein, together with any interest or other earnings thereon, and all proceeds thereof (including proceeds of sales and other dispositions), whether accounts, general intangibles, chattel paper, deposit accounts, instruments, documents or
securities; and 
  
 (d) The Property Account and
Cash Management Account are not in the name of any Person other than Borrower, as pledgor, or Lender, as pledgee. 
  
 4.1.37 Intentionally Omitted. 
  

 51 

 4.1.38 Ground Lease. Borrower hereby represents and warrants to Lender the
following with respect to the Ground Lease: 
  
 (a) Recording; Modification. A memorandum of the Ground Lease has been duly recorded. The Ground Lease permits the interest of Borrower to be encumbered by a mortgage in accordance with the terms thereof. There have not been
amendments or modifications to the terms of the Ground Lease since its recordation, with the exception of written instruments which have been recorded. Ground Lessor’s right to cancel, terminate, or surrender the Ground Lease is subject to
Lender’s right to cure Borrower’s defaults thereunder and Lender’s right to commence a foreclosure, as more fully set forth in Section 8.5 of the Ground Lease. The Ground Lease may not be amended without the prior written
consent of Lender. 
  
 (b) No Liens.
Except for the Permitted Encumbrances, Borrower’s interest in the Ground Lease is not subject to any Liens or encumbrances superior to, or of equal priority with, the Mortgage other than Ground Lessor’s related fee interest. 
  
 (c) Ground Lease Assignable. Borrower’s interest
in the Ground Lease is assignable to Lender without the consent of Ground Lessor (or, if any such consent is required, it has been obtained prior to the Closing Date). 
  
 (d) Default. As of the date hereof, the Ground Lease is in full force and effect and no default is
continuing under the Ground Lease and there is no existing condition which, but for the passage of time and/or the giving of notice, is reasonably likely to result in a default under the terms of the Ground Lease. All Ground Rent has been paid in
full. Neither Borrower nor, to Borrower’s knowledge, Ground Lessor under the Ground Lease has commenced any action or given or received any notice for the purpose of terminating the Ground Lease. 
  
 (e) Notice. The Ground Lease requires Ground Lessor
to give Lender a duplicate copy of any written notice of default or other written notice given to Borrower under the Ground Lease, and any such notice is not effective against Lender unless a copy of such notice has been delivered to Lender in the
manner described in the Ground Lease. 
  
 (f)
Cure. Lender is permitted the opportunity (including, where necessary, sufficient time to gain possession of the interest of Borrower under the Ground Lease) to cure any default under the Ground Lease which is curable, after the receipt of
notice of the default, before Ground Lessor may terminate the Ground Lease. 
  
 (g) Term. The Ground Lease has a term which extends not less than twenty (20) years beyond the Stated Maturity Date. 
  
 (h) New Lease. The Ground Lease requires Ground Lessor to enter into a new lease with Lender upon termination of the Ground Lease
for any reason (including rejection of the Ground Lease in a bankruptcy proceeding) other than (i) expiration of the term or (ii) as a result of eminent domain or casualty or destruction or the exercise of Borrower’s rights under Article 21 of
the Ground Lease. 
  
 (i) Insurance
Proceeds. Under the terms of the Ground Lease and the Mortgage, taken together, any related insurance and condemnation proceeds will be applied to the repair or restoration of all or part of the Property, with an insurance trustee (which may be
Lender) having the right to hold and disburse the proceeds as the repair or restoration progresses. 
  

 52 

 (j) Subleasing. The Ground Lease imposes certain restrictions on subleasing,
provided that subleasing of less than all of the Property is permitted without Ground Lessor’s consent if the term of the sublease does not expire later than the term of the Ground Lease and the sublessee meets certain standards
regarding experience, reputation and financial responsibility, as described in Section 12.2 of the Ground Lease. 
  
 Section 4.2 Survival of Representations. Borrower agrees that all of the representations and warranties of Borrower set forth in Section 4.1
hereof and elsewhere in this Agreement and in the other Loan Documents shall survive for so long as any amount remains owing to Lender under this Agreement or any of the other Loan Documents by Borrower. All representations, warranties, covenants
and agreements made in this Agreement or in the other Loan Documents by Borrower shall be deemed to have been relied upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf. 
  
 ARTICLE 5 
  
 BORROWER COVENANTS 
  
 Section 5.1 Affirmative Covenants. From the date hereof and until payment and performance in full of all obligations of Borrower under the Loan
Documents or the earlier release of the Lien of the Mortgage (and all related obligations) in accordance with the terms of this Agreement and the other Loan Documents, Borrower hereby covenants and agrees with Lender that: 
  
 5.1.1 Existence; Compliance with Legal Requirements.
Borrower shall do or cause to be done all things necessary to preserve, renew and keep in full force and effect its existence, rights, licenses, permits and franchises and comply, in all material respects, with all Legal Requirements applicable to
Borrower and the Property. There shall never be committed by Borrower, and Borrower shall not permit any other Person in occupancy of or involved with the operation or use of the Property to commit, any act or omission affording the federal
government or any state or local government the right of forfeiture against the Property or any part thereof or any monies paid in performance of Borrower’s obligations under any of the Loan Documents. Borrower hereby covenants and agrees not
to commit, permit or suffer to exist any act or omission affording such right of forfeiture. Borrower shall at all times reasonably maintain, preserve and protect all material franchises and material trade names, preserve all the remainder of its
property used or useful in the conduct of its business, and shall keep the Property in reasonably good working order and repair, and from time to time make, or cause to be made, all reasonably necessary repairs, renewals, replacements, betterments
and improvements thereto, all as more fully provided in the Mortgage. Borrower shall keep the Property insured at all times by financially sound and reputable insurers, to such extent and against such risks, and maintain liability and such other
insurance, as is more fully provided in this Agreement. After prior notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding promptly initiated and conducted in good faith and with due diligence, the validity of
any Legal Requirement, the applicability of any Legal Requirement to Borrower or the Property or any alleged violation of any Legal Requirement, provided, that: (a) no Release Default or Event of Default has occurred and remains
uncured; (b) Borrower is permitted to do so under the provisions of any mortgage or deed of trust superior in lien to the 

  

 53 

 
Mortgage; (c) such proceeding shall be permitted under and be conducted in accordance with the provisions of any instrument to which Borrower is subject and
shall not constitute a default thereunder and such proceeding shall be conducted in accordance with all applicable statutes, laws and ordinances; (d) neither the Property nor any part thereof or interest therein will be in danger of being sold,
forfeited, terminated, cancelled or lost; (e) Borrower shall, upon final determination thereof, promptly comply with any such Legal Requirement determined to be valid or applicable or cure any violation of any Legal Requirement; (f) such proceeding
shall suspend the enforcement of the contested Legal Requirement against Borrower and/or the Property; and (g) Borrower shall furnish such security as may be required in the proceeding, or as may be reasonably requested by Lender, to insure
compliance with such Legal Requirement, together with all interest and penalties payable in connection therewith. Lender may apply any such security, as necessary to cause compliance with such Legal Requirement at any time when, in the reasonable
judgment of Lender, the validity, applicability or violation of such Legal Requirement is finally established or the Property (or any part thereof or interest therein) shall be in imminent danger of being sold, forfeited, terminated, cancelled or
lost. 
  
 5.1.2 Taxes and Other Charges.
Borrower shall pay all Taxes and Other Charges now or hereafter levied or assessed or imposed against the Property, or any part thereof, prior to delinquency; provided, however, Borrower’s obligation to directly pay Taxes shall be
suspended for so long as adequate reserves for same are maintained pursuant to Section 7.2 hereof. Borrower shall furnish to Lender receipts for the payment of the Taxes and the Other Charges prior to the date the same shall become delinquent
provided, however, Borrower is not required to furnish such receipts for payment of Taxes in the event that such Taxes have been paid by Lender pursuant to Section 7.2 hereof. Borrower shall not suffer and shall promptly cause
to be paid and discharged any Lien or charge whatsoever which may be or become a Lien or charge against the Property and that is prohibited in accordance with Section 5.2.2 hereof, and shall pay for all utility services provided to the
Property prior to delinquency. After prior notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the amount or validity or application in
whole or in part of any Taxes, Other Charges or other Liens, provided, that: (a) no Release Default or Event of Default has occurred and remains uncured; (b) Borrower is permitted to contest same under the provisions of any mortgage or
deed of trust superior in lien to the Mortgage; (c) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower is subject and shall not constitute a default thereunder and
such proceeding shall be conducted in accordance with all applicable statutes, laws and ordinances; (d) neither the Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost; (e)
Borrower shall promptly upon final determination thereof pay the amount of any such Taxes or Other Charges, together with all costs, interest and penalties which may be payable in connection therewith; (f) such proceeding shall suspend the
collection of such contested Taxes or Other Charges from the Property; and (g) Borrower shall furnish such security as may be required in the proceeding, or as may be reasonably requested by Lender, to insure the payment of any such Taxes or Other
Charges, together with all interest and penalties thereon. Lender may pay over any such other security or part thereof held by Lender to the claimant entitled thereto at any time when, in the judgment of Lender, the entitlement of such claimant is
established or the Property (or any part thereof or interest therein) shall be in imminent danger of being sold, forfeited, terminated, 

  

 54 

 
cancelled or lost or there shall be any danger of the Lien of the Mortgage or the Second Mortgage being primed by any related Lien. 
  
 5.1.3 Litigation. Borrower shall give prompt notice
to Lender of any litigation or governmental proceedings pending or threatened in writing against Borrower, Principal and/or Guarantor which is reasonably likely to cause a Material Adverse Effect. 
  
 5.1.4 Access to Property. Borrower shall permit
agents, representatives and employees of Lender to inspect the Property or any part thereof at reasonable hours upon reasonable advance notice (which may be given verbally). 
  
 5.1.5 Notice of Default. Borrower shall promptly advise Lender of any material adverse change in
Borrower’s, Principal’s or Guarantor’s condition, financial or otherwise, or of the occurrence of any Default or Event of Default of which Borrower has knowledge. 
  
 5.1.6 Cooperate in Legal Proceedings. Borrower shall cooperate fully with Lender with respect to any
proceedings before any court, board or other Governmental Authority which may in any way affect the rights of Lender hereunder or any rights obtained by Lender under any of the other Loan Documents and, in connection therewith, permit Lender, at its
election, to participate in any such proceedings. 
  
 5.1.7 Perform Loan Documents. Borrower shall observe, perform and satisfy all the terms, provisions, covenants and conditions of, and shall pay when due all costs, fees and expenses to the extent required under the Loan Documents
executed and delivered by, or applicable to, Borrower. Payment of the costs and expenses associated with any of the foregoing shall be in accordance with the terms and provisions of this Agreement, including, without limitation, the provisions of
Section 10.13 hereof. 
  
 5.1.8 Award
and Insurance Benefits. Borrower shall cooperate with Lender in obtaining for Lender the benefits of any Awards or Insurance Proceeds lawfully or equitably payable in connection with the Property, and Lender shall be reimbursed for any expenses
reasonably incurred in connection therewith (including reasonable attorneys’ fees and disbursements, and the payment by Borrower of the expense of an appraisal on behalf of Lender in case of Casualty or Condemnation affecting the Property or
any part thereof) out of such Insurance Proceeds. 
  
 5.1.9 Further Assurances. Borrower shall, at Borrower’s sole cost and expense: 
  
 (a) furnish to Lender all instruments, documents, boundary surveys, footing or foundation surveys, certificates, plans and specifications,
appraisals, title and other insurance reports and agreements, and each and every other document, certificate, agreement and instrument required to be furnished by Borrower pursuant to the terms of the Loan Documents or which are reasonably requested
by Lender in connection therewith; 
  
 (b)
execute and deliver to Lender such documents, instruments, certificates, assignments and other writings, and do such other acts necessary or desirable, to evidence, preserve and/or protect the collateral at any time securing or intended to secure
the obligations of Borrower under the Loan Documents, as Lender may reasonably require; and 
  

 55 

 (c) do and execute all and such further lawful and reasonable acts, conveyances and
assurances for the better and more effective carrying out of the intents and purposes of this Agreement, the other Loan Documents, as Lender shall reasonably require from time to time. 
  
 5.1.10 Mortgage Taxes. Borrower represents that it has paid all state, county and municipal recording
and all other taxes imposed upon the execution and recordation of the Mortgage. 
  
 5.1.11 Financial Reporting. 
  
 (a) Borrower will keep and maintain or will cause to be kept and maintained on a Fiscal Year basis, in accordance with GAAP and the
Uniform System of Accounts (or such other accounting basis acceptable to Lender), proper and accurate books, records and accounts reflecting all of the financial affairs of Borrower and all items of income and expense in connection with the
operation of the Property. Lender shall have the right from time to time at all times during normal business hours upon reasonable notice (which may be verbal) to examine such books, records and accounts at the office of Borrower or any other Person
maintaining such books, records and accounts and to make such copies or extracts thereof as Lender shall desire. After the occurrence of an Event of Default, Borrower shall pay any costs and expenses incurred by Lender to examine Borrower’s
accounting records with respect to the Property, as Lender shall determine to be necessary or appropriate in the protection of Lender’s interest. 
  
 (b) Borrower will furnish to Lender annually, within one hundred twenty (120) days following the end of each Fiscal Year of Borrower, a
complete copy of Borrower’s combined annual financial statements (combined with those of the Other Borrowers) and Guarantor’s consolidated annual financial statements audited by a “Big Four” accounting firm or other independent
certified public accountant acceptable to Lender in accordance with GAAP (or such other accounting basis acceptable to Lender) covering the Property and the Other Properties for such Fiscal Year and containing statements of profit and loss for
Borrower, the Other Borrowers and Guarantor and a balance sheet for Borrower, the Other Borrowers and Guarantor. Such statements, with respect to the Borrower and the Other Borrowers shall set forth the financial condition and the results of
operations for the Property and the Other Properties for such Fiscal Year, and shall include, but not be limited to, amounts representing annual Aggregate Net Cash Flow, Aggregate Net Operating Income, Aggregate Gross Income from Operations and
Aggregate Operating Expenses. In addition, such statements shall include supplementary information setting forth the financial condition and results of operation for each of Borrower and the Other Borrowers, Borrower’s, the Other
Borrowers’ and Guarantor’s annual financial statements shall be accompanied by (i) an unqualified opinion of a “Big Four” accounting firm or other independent certified public accountant reasonably acceptable to Lender, (ii) a
schedule audited by such independent certified public accountant reconciling Aggregate Net Operating Income to Aggregate Net Cash Flow (the “Net Cash Flow Schedule”), which shall itemize all adjustments made to Aggregate Net
Operating Income to arrive at Aggregate Net Cash Flow deemed material by such independent certified public accountant, and (iii) an Officer’s Certificate certifying that (x) the Capital Expenditures for such year and (y) each annual financial
statement presents fairly the financial condition and the results of operations of Borrower, the Other Borrowers, Guarantor and the Property and the Other Properties being reported upon and 

  

 56 

 
that such financial statements have been prepared in accordance with GAAP and as of the date thereof whether there exists an event or circumstance which
constitutes a Default or Event of Default under the Loan Documents executed and delivered by, or applicable to, Borrower, the Other Borrowers or Guarantor, and if such Default or an Event of Default exists, the nature thereof, the period of time it
has existed and the action then being taken to remedy the same. 
  
 (c) Borrower will furnish, or cause to be furnished, to Lender on or before (i) twenty-five (25) days after the end of each calendar month thereafter, and (ii) forty-five (45) days after the end of each calendar
quarter thereafter, the following items, accompanied by an Officer’s Certificate stating that such items are true, correct, accurate, and complete and fairly present the financial condition and results of the operations of Borrower and the
Property (subject to normal year-end adjustments) as applicable: (i) monthly and year-to-date operating statements prepared for each calendar month, noting Net Operating Income, Gross Income from Operations, and Operating Expenses (not including any
contributions to the FF&E Reserve Funds and/or the Debt Service Reserve), and, upon Lender’s request, other information necessary and sufficient to fairly represent the financial position and results of operation of the Property during such
period, and containing a comparison of budgeted income and expenses and the actual income and expenses together with a detailed explanation of any variances that either exceed (1) 10% and $10,000 with respect to any one (1) line item or (2) 5% in
the aggregate between all budgeted and actual amounts for such periods, all in form reasonably satisfactory to Lender; and (ii) a calculation reflecting the annual Debt Service Coverage Ratio for the immediately preceding twelve (12) month period
for which financial statements are available as of the last day of each calendar month or quarter (as applicable), and (iii) a computation of Net Cash Flow for such period. In addition, such Officer’s Certificate shall also state that the
representations and warranties of Borrower set forth in Section 4.1.30 are true and correct as of the date of such certificate and whether there are trade payables outstanding for more than sixty (60) days. 
  
 (d) Intentionally Omitted. 
  
 (e) Intentionally Omitted. 
  
 (f) Intentionally Omitted. 
  
 (g) Intentionally Omitted. 
  
 (h) Intentionally Omitted. 
  
 (i) Borrower will furnish to Lender on or before forty-five
(45) days after the end of each calendar quarter (a) a statement setting forth (i) the Aggregate Net Cash Flow for each calendar quarter and calendar year occurring during the full twelve (12) calendar month period immediately proceeding the date of
such statement for which financial statements are available. 
  
 (j) Lender hereby approves the Annual Budget and the Annual FF&E Budget for the partial year 2004 previously delivered to it. For each calendar year commencing with calendar year 2005, Borrower shall submit to
Lender (i) an Annual Budget for the Property and (ii) an Annual FF&E Budget with respect to FF&E required to be made to the Property for such 

  

 57 

 
year, each not later than thirty (30) days prior to the commencement of such period or calendar year in form reasonably satisfactory to Lender. The Annual
FF&E Budget shall provide for FF&E expenditures equal to at least four (4%) percent of the Gross Income from Operations derived from the operation of the Property during the preceding calendar year. The Annual Budget shall be subject to
Lender’s reasonable written approval (each such Annual Budget as so approved in writing by Lender, is herein referred to as an “Approved Annual Budget”). Notwithstanding the foregoing, variances between budgeted and actual
amounts in the Approved Annual Budget may vary by up to the greater of ten percent (10%) or $10,000.00 with respect to any one (1) line item and up to five percent (5%) in the aggregate for the entire Approved Annual Budget without the consent of
Lender. The Annual FF&E Budget shall likewise be subject to Lender’s reasonable written approval (each such Annual FF&E Budget as so approved in writing by Lender, is herein referred to as an “Approved Annual FF&E
Budget”). In the event that Lender objects to a proposed Annual Budget and/or Annual FF&E Budget submitted by Borrower, Lender shall advise Borrower of such objections within ten (10) Business Days after receipt thereof (and
deliver to Borrower a reasonably detailed description of such objections) and Borrower shall promptly revise such Annual Budget and/or Annual FF&E Budget, as applicable, and resubmit the same to Lender. Lender shall advise Borrower of any
objections to such revised Annual Budget and/or Annual FF&E Budget within five (5) Business Days after receipt thereof (and deliver to Borrower a reasonably detailed description of such objections) and Borrower shall promptly revise the same in
accordance with the process described in this subsection until Lender approves the Annual Budget and/or Annual FF&E Budget. Notwithstanding the foregoing, Lender shall be deemed to have consented to any Annual Budget and/or Annual FF&E
Budget if Lender has not provided Borrower with a written notice of denial within ten (10) Business Days of Lender’s receipt of such Annual Budget and/or Annual FF&E Budget so long as Borrower’s request is submitted with the words
“IMMEDIATE RESPONSE REQUIRED, DEEMED APPROVED IF NO RESPONSE RECEIVED WITHIN TEN (10) BUSINESS DAYS” in bold print, all capital letters, in 14 point or larger and prominently displayed at the top of any correspondence and on any envelope
containing the request. Until such time that Lender approves a proposed Annual Budget and/or Annual FF&E Budget (or approval is deemed given), the most recently Approved Annual Budget and/or Annual Approved FF&E Budget shall apply;
provided, that, such Approved Annual Budget shall be adjusted to reflect actual increase in utility costs, Taxes, Insurance Premiums and Other Charges. 
  

(k) In the event that, Borrower must incur an extraordinary Operating Expense or Capital Expenditure not set forth in the Approved
Annual Budget (each an “Extraordinary Expense”), then Borrower shall promptly deliver to Lender a reasonably detailed explanation of such proposed Extraordinary Expense together with all invoices or other backup
reasonably required by Lender to substitute such proposed Extraordinary Expense and the amount thereof; provided, that, in the event Borrower is required to incur Extraordinary Expenses before Lender’s consent is granted due to
emergencies involving imminent danger to person or property Lender’s consent shall not be required with respect to such emergency only provided that Borrower shall promptly provide Lender with a reasonably detailed description of such
expenditures and the emergency following same. No Rents may be used to pay an Extraordinary Expense unless and until Lender has reasonably approved same in writing, which approval will not by unreasonably withheld or delayed; provided, however,
Lender shall be deemed to have consented to such Extraordinary Expense if Lender has not provided Borrower 

  

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with a written notice of denial within ten (10) Business Days of Lender’s receipt of such request so long as Borrower’s request is submitted with
the words “IMMEDIATE RESPONSE REQUIRED, DEEMED APPROVED IF NO RESPONSE RECEIVED WITHIN TEN (10) BUSINESS DAYS” in bold print, all capital letters, in 14 point or larger and prominently displayed at the top of any correspondence and on any
envelope containing the request. Notwithstanding the foregoing, Lender’s consent shall not be required for the payment of Taxes, Insurance Premiums or utilities with respect to the Property in excess of the amounts provided for in the Approved
Annual Budget for such items provided that Borrower shall provide prompt notice to Lender of such increases following Borrower’s knowledge of such increase. 
  
 (l) Any reports, statements or other information required to be delivered under this Agreement shall be
delivered (i) in paper form, (ii) on a diskette, and (iii) if requested by Lender and within the capabilities of Borrower’s data systems without change or modification thereto, in electronic form and prepared using a Microsoft Word for Windows
or WordPerfect for Windows files (which files may be prepared using a spreadsheet program and saved as word processing files). Borrower agrees that Lender may disclose information regarding the Property and Borrower that is provided to Lender
pursuant to this Section 5.1.11 in connection with the Securitization to such parties requesting such information in connection with such Securitization. 
  
 5.1.12 Business and Operations. Borrower will continue to engage in the businesses presently
conducted by it as and to the extent the same are necessary for the ownership, maintenance, management and operation of the Property. Borrower will qualify to do business and will remain in good standing under the laws of each jurisdiction as and to
the extent the same are required for the ownership, maintenance, management and operation of the Property. 
  
 5.1.13 Title to the Property. Borrower will warrant and defend (a) the title to the Property and every part thereof, subject only
to Liens permitted hereunder (including Permitted Encumbrances), and (b) the validity and priority of the Lien of the Mortgage, the Second Mortgage and the Assignment of Leases, subject only to Liens permitted hereunder (including Permitted
Encumbrances), in each case against the claims of all Persons whomsoever. Borrower shall reimburse Lender for any losses, costs, damages or expenses (including reasonable attorneys’ fees and court costs) incurred by Lender if an interest in the
Property, other than as permitted hereunder, is claimed by another Person. 
  
 5.1.14 Costs of Enforcement. In the event (a) that the Mortgage and/or the Second Mortgage is foreclosed in whole or in part or that the Mortgage and/or the Second Mortgage is put into the hands of an attorney
for collection, suit, action or foreclosure, (b) of the foreclosure of any mortgage prior to or subsequent to the Mortgage and/or the Second Mortgage in which proceeding Lender is made a party, or (c) of the bankruptcy, insolvency, rehabilitation or
other similar proceeding in respect of Borrower or any direct or indirect owners, members or partners of Borrower or an assignment by Borrower or any direct or indirect owners, members or partners of Borrower for the benefit of its creditors,
Borrower, on behalf of itself and its successors and assigns, agrees that it/they shall be chargeable with and shall pay all costs of collection and defense, including attorneys’ fees and costs, incurred by Lender or Borrower in connection
therewith and in connection with any appellate proceeding or post-judgment action involved therein, together with all required service or use taxes. 
  

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 5.1.15 Estoppel Statement. 
  
 (a) After request by Lender from time to time, but no more
frequently than twice in any 12 month period, Borrower shall within ten (10) days furnish Lender with a statement, duly acknowledged and certified, setting forth (i) the original principal amount of the Loan, (ii) the Outstanding Principal Balance,
(iii) the date installments of interest and/or principal were last paid, (iv) any offsets or defenses to the performance of the Obligations, if any, and (v) that the Note, this Agreement, the Mortgage and the other Loan Documents are valid, legal
and binding obligations of Borrower and have not been modified or if modified, giving particulars of such modification. 
  
 (b) Borrower shall deliver to Lender promptly upon request from time to time and subject to the terms of the Leases, tenant estoppel
certificates from each commercial tenant leasing 5,000 square feet or more of space at the Property in form and substance reasonably satisfactory to Lender; provided, that, Borrower shall not be required to deliver such certificates
more frequently than two (2) times in any calendar year. 
  
 (c) Borrower shall deliver to Lender promptly upon request from time to time, an estoppel certificate from Ground Lessor with respect to the Ground Lease in form and substance reasonably satisfactory to Lender;
provided, that, Borrower shall only be required to deliver such certificate in connection with a Securitization or any sale by the Lender of the Loan or participation interests therein, and not more frequently than two (2) times in any
calendar year. 
  
 5.1.16 Loan Proceeds.
Borrower shall use the proceeds of the Loan received by it on the Closing Date only for the purposes set forth in Section 2.1.4 hereof. 
  
 5.1.17 Performance by Borrower. Borrower shall not enter into or otherwise suffer or permit any amendment, waiver, supplement,
termination or other modification of any Loan Document executed and delivered by, or applicable to, Borrower without the prior consent of Lender. 
  
 5.1.18 Confirmation of Representations. Borrower shall deliver, in connection with any Securitization, (a) one or more
Officer’s Certificates certifying as to the accuracy of all representations made by Borrower in the Loan Documents as of the date of the closing of such Securitization in all relevant jurisdictions, and (b) certificates of the relevant
Governmental Authorities in all relevant jurisdictions indicating the good standing and qualification of Borrower and Principal as of the date of the Securitization. 
  
 5.1.19 No Joint Assessment. Borrower shall not suffer, permit or initiate the joint assessment of the
Property (a) with any other real property constituting a tax lot separate from the Property, and (b) which constitutes real property with any portion of the Property which may be deemed to constitute personal property, or any other procedure whereby
the lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to such real property portion of the Property. 
  

5.1.20 Leasing Matters. Any Leases with respect to the Property executed after the date hereof, for more than 5,000 square feet
shall be approved by Lender, which approval 

  

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shall not be unreasonably withheld, delayed or conditioned. Upon request, Borrower shall furnish Lender with executed copies of all Leases. All renewals of
Leases and all proposed Leases shall provide for rental rates comparable to existing local market rates. All proposed Leases shall be on commercially reasonable terms and shall not contain any terms which would materially affect Lender’s rights
under the Loan Documents. All Leases executed after the date hereof shall provide that they are subordinate to the Mortgage and that the lessee agrees to attorn to Lender or any purchaser at a sale by foreclosure or power of sale. Borrower shall (a)
observe and perform the obligations imposed upon the lessor under the Leases in a commercially reasonable manner; (b) enforce and may amend or terminate the terms, covenants and conditions contained in the Leases upon the part of the lessee
thereunder to be observed or performed in a commercially reasonable manner and in a manner not to impair the value of the Property involved except that no termination by Borrower or acceptance of surrender by a tenant of any Leases of more than
5,000 square feet shall be permitted unless by reason of a tenant default and then only in a commercially reasonable manner to preserve and protect the Property; provided, however, that no such termination or surrender of any Lease
covering more than 5,000 square feet will be permitted without the consent of Lender; (c) not collect any of the rents more than one (1) month in advance (other than security deposits); (d) not execute any other assignment of lessor’s interest
in the Leases or the Rents (except as contemplated by the Loan Documents); (e) not alter, modify or change the terms of any Lease in excess of 5,000 square feet in a manner inconsistent with the provisions of the Loan Documents; and (f) execute and
deliver at the request of Lender all such further assurances, confirmations and assignments in connection with the Leases as Lender shall from time to time reasonably require. Notwithstanding anything to the contrary contained herein, Borrower shall
not enter into a lease of all or substantially all of the Property without Lender’s prior consent. 
  
 5.1.21 Alterations. Borrower shall obtain Lender’s prior consent to any alterations to any Improvements (excluding Decorative
Changes), which consent shall not be unreasonably withheld, delayed or conditioned. Notwithstanding the foregoing, Lender’s consent shall not be required in connection with: any alterations to the Improvements (excluding Decorative Changes)
that will not have a Material Adverse Effect, provided, that, such alterations (a) are made in connection with tenant improvement work performed pursuant to the terms of any Lease executed on or before the date hereof, (b) do not
adversely affect any structural component of any Improvements, any utility or HVAC system contained in any Improvements or the exterior of any building constituting a part of any Improvements and the aggregate cost thereof does not exceed
$1,000,000.00 (the “Threshold Amount”), or (c) are performed in connection with Restoration after the occurrence of a Casualty in accordance with the terms and provisions of this Agreement. If the total unpaid amounts due and
payable with respect to alterations to the Improvements at the Property shall at any time exceed the Threshold Amount, Borrower shall promptly deliver to Lender as security for the payment of such amounts and as additional security for
Borrower’s obligations under the Loan Documents any of the following: (i) cash, (ii) U.S. Obligations, (iii) other securities having a rating acceptable to Lender and that the applicable Rating Agencies have confirmed in writing will not, in
and of itself, result in a downgrade, withdrawal or qualification of the initial, or, if higher, then current ratings assigned to any Securities or any class thereof in connection with any Securitization, or (iv) a completion and performance bond or
an irrevocable letter of credit (payable on sight draft only) issued by a financial institution (A) having a rating by S&P of not less than “A-1+” if the term of such bond or letter of credit is no longer than three (3) months or, if
such term is in 

  

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excess of three (3) months, issued by a financial institution having a rating that is reasonably acceptable to Lender, and (B) that the applicable Rating
Agencies have confirmed in writing will not, in and of itself, result in a downgrade, withdrawal or qualification of the initial, or, if higher, then current ratings assigned to any Securities or any class thereof in connection with any
Securitization. Such security shall be in an amount equal to the excess of the total unpaid amounts with respect to alterations to the Improvements on the Property (other than such amounts to be paid or reimbursed by tenants under the Leases) over
the Threshold Amount and upon an Event of Default Lender may apply such security from time to time at the option of Lender to pay for such alterations. 
  
 5.1.22 Operation of Property. 
  
 (a) Borrower shall cause the Property to be operated, in all material respects, in accordance with the Management Agreement or Replacement
Management Agreement, as applicable. In the event that the Management Agreement expires or is terminated (without limiting any obligation of Borrower to obtain Lender’s consent to any termination or modification of the Management Agreement in
accordance with the terms and provisions of this Agreement), Borrower shall promptly enter into a Replacement Management Agreement with Manager or another Qualified Manager, as applicable. 
  
 (b) Borrower shall: (i) promptly perform and/or observe in
all material respects all of the covenants and agreements required to be performed and observed by Borrower under the Management Agreement and do all things necessary to preserve and to keep unimpaired its material rights thereunder; (ii) promptly
notify Lender of any material default under the Management Agreement of which it is aware; (iii) promptly deliver to Lender a copy of each financial statement, business plan, capital expenditures plan, material notice, material report and estimate
received by it under the Management Agreement; and (iv) enforce the performance and observance of all of the covenants and agreements required to be performed and/or observed by Manager under the Management Agreement, in a commercially reasonable
manner. 
  
 Section 5.2 Negative Covenants. From the date
hereof until payment and performance in full of all obligations of Borrower under the Loan Documents or the earlier release of the Lien of the Mortgage and Second Mortgage in accordance with the terms of this Agreement and the other Loan Documents,
Borrower covenants and agrees with Lender that it will not do, directly or indirectly, any of the following: 
  
 5.2.1 Operation of Property. 
  
 (a) Borrower shall not, without Lender’s prior consent (which consent shall not be unreasonably withheld): (i) subject to Section
9.5 hereof, surrender, terminate or cancel the Management Agreement; provided, that Borrower may, without Lender’s consent, replace the Manager so long as the replacement manager is a Qualified Manager pursuant to a Replacement
Management Agreement; (ii) reduce or consent to the reduction of the term of the Management Agreement; (iii) increase or consent to the increase of the amount of any charges or fees under the Management Agreement; or (iv) otherwise modify, change,
supplement, alter or 

  

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amend, or waive or release any of its rights and remedies under, the Management Agreement in any material respect. 
  
 (b) Following the occurrence and during the continuance of
an Event of Default, Borrower shall not exercise any rights, make any decisions, grant any approvals or otherwise take any action under the Management Agreement without the prior consent of Lender, which consent may be withheld in Lender’s sole
discretion, unless failure to do so would cause a default of Borrower’s obligations under the Management Agreement. 
  
 5.2.2 Liens. Borrower shall not create, incur, assume or suffer to exist any Lien on any portion of the Property or permit any such
action to be taken, except: 
  
 (a) Permitted
Encumbrances; 
  
 (b) Liens created by or
permitted pursuant to the Loan Documents; and 
  
 (c) Liens for Taxes or Other Charges not yet due. 
  
 5.2.3 Dissolution. Borrower shall not (a) engage in any dissolution, liquidation, consolidation or merger with or into any other business entity, (b) engage in any business activity not related to the ownership
and operation of the Property, (c) transfer, lease or sell, in one transaction or any combination of transactions, the assets or all or substantially all of the properties or assets of Borrower except to the extent permitted by the Loan Documents,
(d) modify, amend, waive or terminate its organizational documents or its qualification and good standing in any jurisdiction, or (e) cause Principal to (i) dissolve, wind up or liquidate or take any action, or omit to take any action, as a result
of which Principal would be dissolved, wound up or liquidated in whole or in part, or (ii) amend, modify, waive or terminate the certificate of incorporation or bylaws of Principal, in each case, without obtaining the prior consent of Lender.

  
 5.2.4 Change in Business. Borrower
shall not enter into any line of business other than the ownership and operation of the Property, or make any material change in the scope or nature of its business objectives, purposes or operations, or undertake or participate in activities other
than the continuance of its present business. 
  
 5.2.5 Debt Cancellation. Borrower shall not cancel or otherwise forgive or release any claim or debt (other than termination of Leases in accordance herewith) owed to Borrower by any Person, except for adequate consideration and in
the ordinary course of Borrower’s business. 
  
 5.2.6 Zoning. Borrower shall not initiate or consent to any zoning reclassification of any portion of the Property or seek any variance under any existing zoning ordinance, or use or permit the use of any portion of the Property in
any manner that could result in such use becoming a non-conforming use under any zoning ordinance or any other applicable land use law, rule or regulation, in each case, without the prior consent of Lender. 
  
 5.2.7 No Joint Assessment. Borrower shall not suffer,
permit or initiate the joint assessment of all or any portion of the Property with (a) any other real property constituting a tax lot separate from the Property, or (b) any portion of the Property which may be deemed to 

  

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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 the Property. 
  
 5.2.8
Principal Place of Business and Organization. Borrower shall not change its principal place of business set forth in the introductory paragraph of this Agreement without first giving Lender at least thirty (30) days prior notice. Borrower
shall not change the place of its organization as set forth in Section 4.1.28 without the consent of Lender, which consent shall not be unreasonably withheld. Upon Lender’s request, Borrower shall authorize the filing of additional
financing statements, security agreements and other instruments which may be necessary to effectively evidence or perfect Lender’s security interest in the Property as a result of such change of principal place of business or place of
organization. 
  
 5.2.9 ERISA. 

 
 (a) Borrower shall not 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 ERISA. 
  
 (b) Borrower further covenants and agrees to deliver to Lender such certifications or other evidence from time to time throughout the term of the Loan, as requested by Lender in its sole discretion, that (i) Borrower is not an
“employee benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “governmental plan” within the meaning of Section 3(32) of ERISA; (ii) Borrower is not subject to any state statute
regulating investments of, or fiduciary obligations with respect to, governmental plans; and (iii) one or more of the following circumstances is true: 
  

	 	(i)	Equity interests in Borrower are publicly offered securities, within the meaning of 29 C.F.R. §2510.3-101(b)(2); 

  

	 	(ii)	Less than twenty-five percent (25%) of each outstanding class of equity interests in Borrower is held by “benefit plan investors” within the meaning of 29 C.F.R.
§2510.3-101(f)(2); or 

  

	 	(iii)	Borrower qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R. §2510.3-101(c) or (e).

  
 5.2.10 Transfers.

  
 (a) Except for the transfer of the Property
in connection with a release thereof pursuant to Section 2.5, Borrower shall not sell, convey, mortgage, grant, bargain, encumber, pledge, assign, grant options with respect to, or otherwise transfer or dispose of (directly or indirectly,
voluntarily or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) the Property or any part thereof or any legal or beneficial interest therein or permit a Sale or Pledge of an interest in any
Restricted Party (collectively, a “Transfer”), other than (x) pursuant to Leases of space in the Improvements to tenants in accordance with the provisions of Section 5.1.20 hereof, and (y) the disposition of Equipment 

  

 64 

 
and other Personal Property pursuant to the replacement thereof or otherwise in the ordinary course of the operation of the Property, without (i) the prior
written consent of Lender and (ii) if a Securitization has occurred or is pending within thirty (30) days, delivery to Lender of written confirmation from the Rating Agencies that the Transfer will not result in the downgrade, withdrawal or
qualification of the then current ratings assigned to any Securities or the proposed rating of any Securities. 
  
 (b) A Transfer shall include, but not be limited to: (i) an installment sales agreement wherein Borrower agrees to sell the Property or
any part thereof for a price to be paid in installments; (ii) an agreement by Borrower leasing all or a substantial part of the Property for other than actual occupancy by a space tenant thereunder or a sale, assignment or other transfer of, or the
grant of a security interest in, Borrower’s right, title and interest in and to any Leases or any Rents; (iii) if a Restricted Party is a corporation, any merger, consolidation or Sale or Pledge of such corporation’s stock or the creation
or issuance of new stock; (iv) if a Restricted Party is a limited or general partnership or joint venture, any merger or consolidation or the change, removal, resignation or addition of a general partner or the Sale or Pledge of the partnership
interest of any general partner or any profits or proceeds relating to such partnership interest, or the Sale or Pledge of limited partnership interests or any profits or proceeds relating to such limited partnership interests or the creation or
issuance of new limited partnership interests; (v) if a Restricted Party is a limited liability company, any merger or consolidation or the change, removal, resignation or addition of a- managing member or non-member manager (or if no managing
member, any member) or the Sale or Pledge of the membership interest of a managing member (or if no managing member, any member) or any profits or proceeds relating to such membership interest, or the Sale or Pledge of non-managing membership
interests or the creation or issuance of new non-managing membership interests; or (vi) if a Restricted Party is a trust or nominee trust, any merger, consolidation or the Sale or Pledge of the legal or beneficial interest in a Restricted Party or
the creation or issuance of new legal or beneficial interests. 
  
 (c) Notwithstanding the provisions of this Section 5.2.10, the following transfers shall not be deemed a Transfer: (i) a transfer by devise or descent or by operation of law upon the death of a member, partner
or shareholder of a Restricted Party; (ii) the Sale or Pledge, in one or a series of transactions, of not more than forty-nine percent (49%) of the stock in a Restricted Party; provided, however, no such transfers shall result in the
change of voting control in the Restricted Party, and as a condition to each such transfer, Lender shall receive not less than thirty (30) days prior written notice of such proposed transfer, (iii) the Sale or Pledge, in one or a series of
transactions, of not more than forty-nine percent (49%) of the limited partnership interests or non-managing membership interests (as the case may be) in a Restricted Party; provided, however, as a condition to each such transfer,
Lender shall receive not less than thirty (30) days prior written notice of such proposed transfer, (iv) transfers, issuances, pledges and redemptions of stock in Wyndham International, Inc. (“Wyndham”) (and its
successors), so long as (A) Wyndham (or any such successor) is (or is controlled by) a Public Company and (B) the surviving entity is primarily involved in, or has a significant business line involving, the ownership and operation of real estate
similar to the Property, (v) the merger or consolidation of Wyndham (or its successors), provided that the surviving entity of such merger or consolidation is (or is controlled by) (A) a Public Company, and (B) primarily involved in, or has a
significant business line involving, the ownership or operation of real estate similar to the Property, (vi) the granting of easements, cross-easements, agreements, restrictions, reservations and rights in the 

  

 65 

 
ordinary course of business for use, access, water and sewer lines, telephone and telegraph lines, electric lines or other utilities or for other similar
purposes, provided that no such easements, agreements, restrictions or rights shall materially impair the utility and/or operation of the Property or Borrower’s ability to repay the Debt as it becomes due or Borrower’s ability to
perform any of its obligations under the Loan Documents, and (vii) transfers of direct or indirect interests in any Borrower or Principal to Affiliates of Wyndham (or its successors) provided that after such transfers such Borrower and
Principal are controlled, directly or indirectly, by Wyndham (or its successors). In addition, on a one time basis, Wyndham may merge or consolidate with a public or private entity in which the surviving entity is not and is not controlled by a
Public Company provided that (a) after such merger, each Borrower and Principal shall continue to comply with the terms of Section 4.1.30 hereof, (b) such merger or consolidation is to a Qualified Transferee, and (c) the surviving
entity is primarily involved in, or has a significant business line involving, the ownership and operation of real estate similar to the Property. In connection with any transfer or merger permitted under this Section 5.2.10, Borrower shall
deliver an Additional Insolvency Opinion if, after such transfer or merger, more than forty-nine percent (49%) of any direct legal or beneficial interest in Borrower (or in any constituent entity of Borrower that is required to comply with the terms
of Section 4.1.30 hereof) is owned by a new or successor entity. Such Additional Insolvency Opinion shall be reasonably acceptable to (a) Lender, prior to a Securitization or (b) the Rating Agencies, if a Securitization has occurred.
Notwithstanding anything to the contrary contained herein, pledges and hypothecations of indirect equity interests in Borrower shall be permitted provided (i) Wyndham (or its successor) maintains control of, and holds beneficial direct or indirect
ownership interests of not less than fifty-one percent (51%) of the membership interests or partnership interests, as applicable, in, each entity comprising Borrower and (ii) any such pledges or hypothecations are in connection with that certain
Credit Agreement and that certain Increasing Rate Note Purchase and Loan Agreement each between Wyndham (or its successors) and The Chase Manhattan Bank, each dated June 30, 1999, as amended or another credit agreement with an institutional lender
or a public bond offering to prepay or refinance in full or in part any such credit facility which institutional lender or bondholders (or the trustee on their behalf), as applicable shall be making or holding a loan to Wyndham or its successor or
its Affiliates (other than Borrower or Principal). A foreclosure sale (or transfer in lieu thereof) of any such pledge or hypothecation to The Chase Manhattan Bank, or another institutional lender as collateral agent for syndicate lenders or another
institutional lender, or the bond trustee, shall be permitted provided (i) Lender is given at least sixty (60) days prior written notice of the proposed foreclosure sale or transfer in lieu thereof; (ii) the transferee is a reputable entity
or person, creditworthy, with sufficient financial worth considering any obligations assumed and undertaken with respect to the Loan, as evidenced by financial statements and other information reasonably requested by Lender; (iii) the Property at
all times shall continue to be managed by a Qualified Manager, and (iv) and any and all such entities will comply with all of the requirements set forth in the Note, this Agreement, the Mortgage and the other Loan Documents. 
  
 (d) Lender shall not be required to demonstrate any actual
impairment of its security or any increased risk of default hereunder in order to declare the Debt immediately due and payable upon a Transfer without Lender’s consent to the extent required hereunder. This provision shall apply to every
Transfer regardless of whether voluntary or not, or whether or not Lender has consented to any previous Transfer. Notwithstanding anything to the contrary contained in this Section 5.2.10, (a) no transfer (whether or not such transfer shall
constitute a 

  

 66 

 
Transfer) shall be made to any Embargoed Person and (b) in the event any transfer (whether or not such transfer shall constitute a Transfer) results in any
Person owning in excess of forty-nine percent (49%) of the ownership interest in a Restricted Party, Borrower shall, prior to such transfer, deliver an updated Insolvency Opinion to Lender, which opinion shall be in form, scope and substance
reasonably acceptable in all respects to Lender and the Rating Agencies. 
  
 (e) Notwithstanding anything to the contrary contained in this Section 5.2.10, Lender shall not withhold its consent to a one-time sale, assignment, or other transfer of all of the Property, provided
that (i) Lender receives sixty (60) days prior written notice of such transfer, (ii) no Event of Default has occurred and is continuing and (iii) upon the satisfaction (in the reasonable determination of Lender) of the following matters: 

 
 (A) Borrower or Transferee (defined below) shall pay
Lender a transfer fee equal to 1% of the Outstanding Principal Balance at the time of such transfer and pay any and all reasonable out-of-pocket costs incurred in connection with the Transfer (including, without limitation, Lender’s reasonable
counsel fees and disbursements and all recording fees, title insurance premiums and mortgage and intangible taxes and the fees and expenses of the Rating Agencies in connection with such Transfer); 
  
 (B) The proposed transferee (the
“Transferee”) (i) shall be a special purpose bankruptcy remote entity that complies with all of the requirements of Section 4.1.30 and whose organizational documents are substantially similar to Borrower’s organizational
documents, or if not substantially similar, acceptable to the Rating Agencies and (ii) is controlled by a Qualified Transferee; 
  
 (C) Transferee shall assume all of the obligations of Borrower under the Note, this Agreement, the Mortgage and the other Loan Documents
in a manner reasonably satisfactory to Lender in all respects, including, without limitation, by entering into an assumption agreement in form and substance reasonably satisfactory to Lender and delivering such legal opinions as Lender may
reasonably require; 
  
 (D) The Property shall be
managed by a Qualified Manager following such transfer; 
  
 (E) The proposed transfer is permitted pursuant to the Franchise Agreement, if any, or the Franchisor consents to such proposed transfer if Franchisor has the right to consent to such proposed transfer; 
  
 (F) Transferee shall deliver an endorsement to the existing
title policy insuring the Mortgage as modified by the assumption agreement, as a valid first lien on the Property and naming the Transferee as owner of the fee or leasehold estate, as applicable, of the Property, which endorsement shall insure that
as of the recording of the assumption agreement, the Property shall not be subject to any additional exceptions or Liens other than Permitted Encumbrances, 

  

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or if such endorsement is not available in the applicable jurisdiction, other evidence reasonably satisfactory to Lender confirming all of the foregoing;

  
 (G) Transferee shall deliver to Lender an
opinion of counsel from an independent law firm with respect to the substantive nonconsolidation of Transferee and its constituent entities (partners, members or shareholders), which law firm and which opinion shall be reasonably satisfactory in all
respects to (i) Lender, if a Securitization has not occurred, or (ii) Lender and the Rating Agencies, if a Securitization has occurred; 
  
 (H) Transferee shall be a Qualified Transferee; 
  

(I) Transferee and Transferee’s Principal must be able to satisfy all the covenants set forth in Sections 4.3 and
5.9 hereof, no Release Default or Event of Default shall otherwise occur as a result of such transfer, and Transferee and Transferee’s Principal shall deliver (A) all organization documentation reasonably requested by Lender, which shall
be reasonably satisfactory to Lender, and (B) all certificates, agreements and covenants reasonably required by Lender; 
  
 (J) Following a Securitization, or at such time as the Loan is scheduled to be included in a Securitization, the Rating Agencies shall
have confirmed that the transfer to Transferee will not cause any downgrade in the ratings assigned to such certificates; 
  
 (K) If the Transferee is not a wholly-owned subsidiary of Principal, each of the Other Properties shall likewise be transferred to such
Transferee or a wholly-owned subsidiary of the new Principal pursuant to the provisions of the Other Loan Agreements; and 
  
 (L) All requisite approvals from all applicable Governmental Authorities and Persons required in connection with such Transfer shall have
been obtained. 
  
 (f) Notwithstanding anything
to the contrary contained in this Section 5.2.10, Lender’s consent shall not be required for the financing of Personal Property and Equipment (“Financing Leases”) owned or to be purchased by the applicable Borrower that
is used in connection with the operation of the Property, provided Lender has received prior written notification of such Borrower’s intent to finance such Personal Property and/or Equipment, and provided, further, that (i)
any such financing is subject to commercially prudent terms and conditions and at a market rate of interest, (ii) the Personal Property and/or Equipment financed is readily replaceable without material interference or interruption to the operation
of the Property as required pursuant to the provisions of this Agreement and the Mortgage and the other Loan Documents, (iii) the aggregate amount of annual debt service or lease payments under such Financing Leases is at all times less than
$100,000.00 per annum, (iv) the documentation for the Financing Leases shall, among other things, provide that Lender shall be given written notice of a default thereunder and Lender shall be provided with a reasonable opportunity to cure such

  

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defaults and (v) the Financing Leases do not create a Lien on the Property other than the Personal Property and/or Equipment financed. 
  
 5.2.11 The Ground Lease. Borrower shall (i) pay all
Ground Rent required to be paid by Borrower, as tenant under and pursuant to the provisions of the Ground Lease, as and when such rent or other charge is payable, (ii) diligently perform and observe all of the terms, covenants and conditions of the
Ground Lease on the part of Borrower, as tenant thereunder, to be performed and observed, at least three (3) days prior to the expiration of any applicable grace period therein provided, and (iii) promptly notify Lender of the giving of any written
notice by Ground Lessor to Borrower of any default by Borrower in the performance or observance of any of the terms, covenants or conditions of the Ground Lease on the part of Borrower, as tenant thereunder, to be performed or observed, and deliver
to Lender a true copy of each such notice. Borrower shall not, without the prior consent of Lender, surrender the leasehold estate created by the Ground Lease or terminate or cancel the Ground Lease or modify, change, supplement, alter or amend the
Ground Lease, in any material respect, either orally or in writing, and Borrower hereby assigns to Lender, as further security for the payment and performance of the Obligations and for the performance and observance of the terms, covenants and
conditions of the Mortgage, this Agreement and the other Loan Documents, all of the rights, privileges and prerogatives of Borrower, as tenant under the Ground Lease, to surrender the leasehold estate created by the Ground Lease or to terminate,
cancel, modify, change, supplement, alter or amend the Ground Lease in any material respect, and any such surrender of the leasehold estate created by the Ground Lease or termination, cancellation, modification, change, supplement, alteration or
amendment of the Ground Lease in any material respect without the prior consent of Lender shall be void and of no force and effect. If Borrower shall default in the performance or observance of any material term, covenant or condition of the Ground
Lease on the part of Borrower, as tenant thereunder, to be performed or observed, then, without limiting the generality of the other provisions of the Mortgage, this Agreement and the other Loan Documents, and without waiving or releasing 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 of the material terms, covenants and conditions of the
Ground Lease on the part of Borrower, as tenant thereunder, to be performed or observed or to be promptly performed or observed on behalf of Borrower, to the end that the rights of Borrower in, to and under the Ground Lease shall be kept unimpaired
as a result thereof and free from default, even though the existence of such event of default or the nature thereof be questioned or denied by Borrower or by any party on behalf of Borrower. If Lender shall make any payment or perform any act or
take action in accordance with the preceding sentence, Lender will notify Borrower three (3) days after the making of any such payment, the performance of any such act or the taking of any such action, unless a shorter period is required to preserve
the Ground Lease. In any such event, subject to the rights of Tenants, subtenants and other occupants under the Leases, Lender and any Person designated as Lender’s agent by Lender shall have, and are hereby granted, the right to enter upon the
Property at any reasonable time, on reasonable notice (which may be given verbally) and from time to time for the purpose of taking any such action. Lender may pay and expend such sums of money as Lender reasonably deems necessary for any such
purpose and upon so doing shall be subrogated to any and all rights of the landlord under the Ground Lease. Borrower hereby agrees to pay to Lender within five (5) Business Days after demand, all such sums so paid and expended by Lender, together
with interest thereon from the day of such payment at the Default Rate. All sums so paid and 

  

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expended by Lender and the interest thereon shall be secured by the legal operation and effect of the Mortgage. If Ground Lessor shall deliver to Lender a
copy of any notice of default sent by said lessor to Borrower, as tenant under the Ground Lease, 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.
Borrower shall exercise each individual option, if any, to extend or renew the term of the Ground Lease upon demand by Lender made at any time within one (1) year prior to the last day upon which any such option may be exercised, and if Borrower
shall fail to do so, Borrower hereby expressly authorizes and appoints Lender its attorney-in-fact to exercise any such option in the name of and upon behalf of the Borrower, which power of attorney shall be irrevocable, shall be deemed to be
coupled with an interest with full power of substitution. Borrower will not subordinate or consent to the subordination of the Ground Lease to any mortgage, security deed, lease or other interest on or in Ground Lessor’s interest in all or any
part of the Property, unless, in each such case, the written consent of Lender shall have been first had and obtained. 
  
 5.2.12 Franchise Provisions. 
  
 (a) Lender acknowledges and agrees that, as of the Closing Date, (i) Borrower is indirectly owned in whole by Wyndham; (ii) the Property
is operated as a “Wyndham” or “Summerfield Suites” hotel and is not subject to a franchise agreement or other agreement in connection with such operation other than the Management Agreement. Borrower shall obtain the approval of
Lender, which approval shall not be unreasonably withheld or delayed by Lender, before entering into any franchise agreement (the “Franchise Agreement”) with any franchisor (the “Franchisor”) that provides for, or
permits, the operation of the Property under such Franchisor’s brand or “flag”. Any Franchise Agreement must include, among other things, rights in the Franchisor’s reservation system and a term of not less than the remaining
term of the Loan. Borrower shall deliver to Lender any such Franchise Agreement for Lender’s review and approval. 
  
 (b) If Borrower shall enter into any Franchise Agreement, Lender shall receive within thirty (30) days following the execution of such
Franchise Agreement a comfort letter from the Franchisor, in which Franchisor shall agree (i) that Lender shall have the right, but not the obligation, to cure any defaults under the Franchise Agreement, (ii) to give Lender written notice of, and a
reasonable time to cure, any default of Borrower under the Franchise Agreement; (iii) not to assert against Lender any defaults which by their nature are personal to Borrower and are not curable by Lender; (iv) to allow Lender to change managers of
the Property; (v) that, if Lender or its affiliate shall acquire title to the Property, Lender or its affiliate shall have an option to succeed to the interest of Borrower under the Franchise Agreement (or to be granted a new Franchise Agreement on
the same terms as the Franchise Agreement) without payment of any fees to Franchisor (other than nominal, processing fees); (vi) that the Franchise Agreement will remain in effect during any foreclosure proceedings by Lender provided Lender cures
all monetary defaults under the Franchise Agreement; (vii) not to modify, cancel, surrender or otherwise terminate the Franchise Agreement during the Term without the consent of Lender; and (viii) that if Lender or its Affiliate succeeds to
Borrower’s interest under the Franchise Agreement, Lender may assign its rights therein to any entity which acquires the Property from Lender or its Affiliate (subject to Franchisor’s reasonable approval). 

  

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The foregoing to the contrary notwithstanding, Lender will not unreasonably withhold approval of Franchisor’s standard form of “comfort
letter”. 
  
 (c) Borrower shall not, and
Borrower shall not permit any Affiliate to, modify, cancel, surrender or otherwise terminate the Franchise Agreement during the Term without the consent of Lender, such consent not to be unreasonably withheld or delayed; provided that, in
connection with a cancellation, surrender or termination, such Franchise Agreement shall be replaced with a substitute franchise agreement reasonably approved by Lender or such other arrangement for the operation of the Property, reasonably approved
by Lender. Borrower shall promptly deliver to Lender copies of any notices of default sent or received by or on behalf of Borrower or any of its Affiliates under the Franchise Agreement. 
  
 (d) Borrower shall at all times that the Debt is outstanding cause the hotel located on the Property to be
operated as (i) a “Wyndham” or a “Summerfield Suites” hotel (or in the name of any successor entity), or (ii) a hotel franchise of a first class, reputable hotel franchise reasonably acceptable to Lender pursuant to a franchise
agreement and management agreement reasonably acceptable to Lender. 
  
 (e) Borrower shall: 
  

	 	(i)	promptly perform and/or observe in all material respects all of the covenants and agreements required to be performed and observed by it under the Franchise Agreement and do all
things necessary to preserve and to keep unimpaired its material rights thereunder; 

  

	 	(ii)	promptly notify Lender of any default under the Franchise Agreement of which it is aware; 

  

	 	(iii)	promptly deliver to Lender a copy of each financial statement, business plan, capital expenditures plan, notice, report and estimate received by it under the Franchise Agreement;

  

	 	(iv)	promptly enforce the performance and observance in all material respects of all of the covenants and agreements required to be performed and/or observed by the franchisor under the
Franchise Agreement; and 

  

	 	(v)	exercise all rights of renewals or extension of the Franchise Agreement (and Borrower hereby appoints Lender as its attorney-in-fact to exercise such options in the name of and on
behalf of Borrower, which power of attorney shall be irrevocable and shall be deemed to be coupled with an interest). 

  

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 ARTICLE 6 
  

INSURANCE; CASUALTY; CONDEMNATION; 
  
 Section 6.1 Insurance.  
  
 (a) Borrower shall obtain and maintain, or cause to be maintained, insurance for Borrower and the Property providing at least the
following coverages: 
  

	 	(i)	 comprehensive all risk insurance on the Improvements and the Personal Property, including contingent liability from Operation of Building Laws, Demolition Costs and
Increased Cost of Construction Endorsements, in each case (A) in an amount equal to one hundred percent (100%) of the “Full Replacement Cost,” which for purposes of this Agreement shall mean actual replacement value (exclusive of costs of
excavations, foundations, underground utilities and footings) with a waiver of depreciation, but the amount shall in no event be less than the Outstanding Principal Balance; (B) containing an agreed amount endorsement with respect to the
Improvements and Personal Property waiving all co-insurance provisions; (C) for all such insurance coverage, providing for no deductible in excess of One Hundred Thousand and No/100 Dollars ($100,000); and (D) containing an “Ordinance or Law
Coverage” or “Enforcement” endorsement if any of the Improvements or the use of the Property shall at any time constitute legal non-conforming structures or uses. In addition, Borrower shall obtain: (x) if any portion of the
Improvements is currently or at any time in the future located in a federally designated “special flood hazard area”, flood hazard insurance in an amount equal to the lesser of (1) the Outstanding Principal Balance or (2) the maximum
amount of such insurance available under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended or such greater amount as Lender shall require;
(y) earthquake insurance in amounts and in form and substance satisfactory to Lender in the event the Property is located in an area with a high degree of seismic activity and (z) coastal windstorm insurance in amounts and in form and substance
satisfactory to Lender (and with deductibles of 3% of the insured value) in the event the Property is located in any coastal region, provided that the insurance pursuant to clauses (x), (y) and (z) hereof shall be on terms consistent with the
comprehensive all risk insurance policy required under this subsection (i). Notwithstanding the foregoing, if the insurance coverage required herein is maintained by Wyndham through a blanket policy of insurance and the deductible for such insurance
coverage is greater than $100,000.00, Borrower may satisfy the 

  

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deductible requirements herein by delivering to Lender a Letter of Credit in an amount equal to the difference between such deductible, as the same may be
adjusted during the term of this Loan, as extended, and $100,000.00, and Lender shall, in the event of a casualty, apply such security from time to time if requested to do so by Borrower to pay for any Restoration or, if an Event of Default occurs,
such Letter of Credit shall constitute additional collateral for the Loan and Lender may apply such sums as otherwise provided in this Agreement. 

  

	 	(ii)	commercial general liability insurance, including a broad form comprehensive general liability endorsement and coverages against claims for personal injury, bodily injury, death or
property damage occurring upon, in or about the Property, such insurance (A) to be on the so-called “occurrence” form with a combined limit of not less than Two Million and No/100 Dollars ($2,000,000) in the aggregate and One Million and
No/100 Dollars ($1,000,000) per occurrence (and, if on a blanket policy, containing an “Aggregate Per Location” endorsement); (B) to continue at not less than the aforesaid limit until required to be changed by Lender in writing by reason
of changed economic conditions making such protection inadequate; and (C) to cover at least the following hazards: (1) premises and operations; (2) products and completed operations on an “if any” basis; (3) independent contractors; (4)
blanket contractual liability for all legal contracts; and (5) contractual liability covering the indemnities contained in Article 8 of the Mortgage to the extent the same is available; 

  

	 	(iii)	 rental loss and/or business income interruption insurance (A) with loss payable to Lender; (B) covering all risks required to be covered by the insurance provided
for in subsection (i) above; (C) containing an extended period of indemnity endorsement which provides that after the physical loss to the Improvements and Personal Property has been repaired, the continued loss of income will be insured until such
income either returns to the same level it was at prior to the loss, or the expiration of twelve (12) months from the date that the Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that the
policy may expire prior to the end of such period; and (D) in an amount equal to one hundred percent (100%) of the projected Gross Income from Operations for a period of eighteen (18) months from the date of such Casualty (assuming such Casualty had
not occurred) and notwithstanding that the policy may expire at the end of such period. The amount of such business income insurance shall be determined prior to the date hereof and at least once each year thereafter based on Borrower’s
reasonable estimate of the Gross Income from Operations for the 

  

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succeeding eighteen (18) month period. Nothing set forth in this Agreement shall be deemed to relieve Borrower of its obligations to pay the obligations
secured by the Loan Documents on the respective dates of payment provided for in the Note and the other Loan Documents except to the extent such amounts are actually paid out of the proceeds of such business income insurance;

  

	 	(iv)	at all times during which structural construction, repairs or alterations are being made with respect to the Improvements, and only if the Property coverage form does not otherwise
apply, (A) owner’s contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the above mentioned commercial general liability insurance policy; and (B) the insurance provided for in
subsection (i) above written in a so-called builder’s risk completed value form (1) on a non-reporting basis, (2) against all risks insured against pursuant to subsection (i) above, (3) including permission to occupy the Property, and (4) with
an agreed amount endorsement waiving co-insurance provisions; 

  

	 	(v)	if the Property includes commercial property, worker’s compensation insurance with respect to any employees of Borrower, as required by any Governmental Authority or Legal
Requirement; 

  

	 	(vi)	comprehensive boiler and machinery insurance, if applicable, in amounts as shall be reasonably required by Lender on terms consistent with the commercial property insurance policy
required under subsection (i) above; 

  

	 	(vii)	umbrella liability insurance in an amount not less than Twenty Million and No/100 Dollars ($20,000,000.00) per occurrence on terms consistent with the commercial general liability
insurance policy required under subsection (ii) above; 

  

	 	(viii)	motor vehicle liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits per occurrence, including umbrella coverage, of
One Million and No/100 Dollars ($1,000,000.00); 

  

	 	(ix)	if the Property is or becomes a legal “non-conforming” use, ordinance or law coverage and insurance coverage to compensate for the cost of demolition or rebuilding of the
undamaged portion of the Property along with any reduced value and the increased cost of construction in amounts as requested by Lender; 

  

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	 	(x)	at all times during the term of the Loan, the commercial property and business income insurance required under Sections 6.1(a)(i) and (iii) above shall cover perils of
foreign terrorism and acts of foreign terrorism and Borrower shall maintain commercial property and business income insurance for loss resulting from perils and acts of foreign terrorism on terms (including amounts) reasonably acceptable to Lender
for so long as such coverage is (A) commercially available and (B) provided that such insurance does not exceed $100,000.00 in the aggregate for the Property and the Other Properties. If the cost of such terrorism insurance exceeds $100,000.00 in
the aggregate for the Property and the Other Properties, Borrower shall obtain the maximum amount of acceptable insurance possible for an amount equal to $100,000.00 in the aggregate for the Property and the Other Properties; and

  

	 	(xi)	upon sixty (60) days’ notice, such other reasonable insurance and in such reasonable amounts as Lender from time to time may reasonably request against such other insurable
hazards which at the time are commonly insured against for properties similar to the Property located in or around the region in which the Property is located. 

  
 (b) All insurance provided for in Section 6.1(a) shall be obtained under valid and enforceable
policies (collectively, the “Policies” or in the singular, the “Policy”), and shall be subject to the approval of Lender as to insurance companies, amounts, deductibles, loss payees and insureds. The Policies shall
be issued by financially sound and responsible insurance companies authorized to do business in the State and having a claims paying ability rating of “A” or better. The Policies described in Section 6.1(a) (other than those
strictly limited to liability protection) shall designate Lender as loss payee. Not less than ten (10) days prior to the expiration dates of the Policies theretofore furnished to Lender, certificates of insurance evidencing the Policies accompanied
by evidence satisfactory to Lender of payment of the premiums due thereunder (the “Insurance Premiums”), shall be delivered by Borrower to Lender. 
  
 (c) Any blanket insurance Policy shall specifically allocate to the Property the amount of coverage from
time to time required hereunder and shall otherwise provide the same protection as would a separate Policy insuring only the Property in compliance with the provisions of Section 6.1(a). 
  
 (d) All Policies provided for or contemplated by Section
6.1(a), except for the Policy referenced in Section 6.1(a)(v), shall name Borrower as the insured and Lender (and its affiliates) as the additional insured, as its interests may appear, and in the case of property damage, boiler and
machinery, flood and earthquake insurance, shall contain a so-called New York standard non-contributing mortgagee clause in favor of Lender providing that the loss thereunder shall be payable to Lender. 
  

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 (e) All Policies provided for in Section 6.1 shall contain clauses or endorsements
to the effect that: 
  

	 	(i)	no act or negligence of Borrower, or anyone acting for Borrower, or of any tenant or other occupant, or failure to comply with the provisions of any Policy, which might otherwise
result in a forfeiture of the insurance or any part thereof, shall in any way affect the validity or enforceability of the insurance insofar as Lender is concerned; 

  

	 	(ii)	the Policies shall not be materially changed (other than to increase the coverage provided thereby) or canceled without at least thirty (30) days’ notice (or ten (10)
days’ notice with respect to non-payment) to Lender and any other party named therein as an additional insured; 

  

	 	(iii)	the issuers thereof shall give notice to Lender if the Policies have not been renewed fifteen (15) days prior to its expiration; and 

  

	 	(iv)	Lender shall not be liable for any Insurance Premiums thereon or subject to any assessments thereunder. 

  
 (f) If at any time Lender is not in receipt of written evidence that all Policies are in full force and
effect, Lender shall give notice (which notice may be oral) thereof to Borrower and Borrower shall within two (2) Business Days of such notice, deliver such written evidence as Lender shall reasonably require that all policies are in full force and
effect. If Borrower does not provide Lender with such evidence that all Policies are in full force and effect within two (2) Business Days of Lender’s notice, Lender shall have the right, without further notice to Borrower, to take such action
as Lender deems necessary to protect its interest in the Property, including, without limitation, the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate. All premiums incurred by Lender in connection with such
action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to Lender upon demand and, until paid, shall be secured by the Mortgage and shall bear interest at the Default Rate. 
  
 Section 6.2 Casualty. If the Property shall be damaged or destroyed,
in whole or in part, by fire or other casualty (a “Casualty”), Borrower shall (a) give prompt notice of such damage to Lender, and (b) promptly commence and diligently prosecute the completion of the Restoration so that the Property
resembles, as nearly as possible, the condition the Property was in immediately prior to such Casualty, with such alterations as may be reasonably approved by Lender and otherwise in accordance with Section 6.4. Borrower shall pay all costs
of such Restoration whether or not such costs are covered by insurance. Lender may, but shall not be obligated to make proof of loss if not made promptly by Borrower. In addition, Lender may approve (not to be unreasonably withheld or delayed) any
settlement with any insurance companies with respect to any Casualty in which the Net Proceeds or the costs of completing the Restoration are equal to or greater than Five Hundred Thousand and No/100 Dollars 

  

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($500,000.00) and Borrower shall deliver to Lender all instruments required by Lender to permit such participation. 
  
 Section 6.3 Condemnation. Borrower shall promptly give Lender notice
of the actual or threatened commencement of any proceeding in respect of Condemnation and shall deliver to Lender copies of any and all papers served in connection with such proceedings. Lender may participate in any such proceedings, and Borrower
shall from time to time deliver to Lender all instruments requested by Lender to permit such participation. Borrower shall, at its expense, diligently prosecute any such proceedings, and shall consult with Lender, its attorneys and experts, and
cooperate with them in the carrying on or defense of any such proceedings. Notwithstanding any taking by any public or quasi-public authority through Condemnation or otherwise (including, but not limited to, any transfer made in lieu of or in
anticipation of the exercise of such taking), Borrower shall continue to perform the Obligations at the time and in the manner provided in this Agreement and the other Loan Documents and the Outstanding Principal Balance shall not be reduced until
any Award shall have been actually received and applied by Lender, after the deduction of expenses of collection, to the reduction or discharge of the Obligations. Lender shall not be limited to the interest paid on the Award by the applicable
Governmental Authority but shall be entitled to receive out of the Award interest at the rate or rates provided herein or in the Note. If the Property or any portion thereof is taken by a Governmental Authority, Borrower shall promptly commence and
diligently prosecute Restoration and otherwise comply with the provisions of Section 6.4. If the Property is sold, through foreclosure or otherwise, prior to the receipt by Lender of the Award, Lender shall have the right, whether or not a
deficiency judgment on the Note shall have been sought, recovered or denied, to receive the Award, or a portion thereof sufficient to pay the Debt. Notwithstanding anything contained in this Section 6.3 or the Deed of Trust to the contrary,
Lender may, in its sole discretion, elect to (y) apply the net proceeds of any condemnation award (after deduction of Lender’s reasonable costs and expenses, if any, in collecting the same) in reduction of the Debt in such order and manner as
Lender may elect, whether due or not, or (z) make the proceeds available to Borrower for the Restoration or repair of the Property. Any implied covenant in this Deed of Trust restricting the right of Lender to make such an election is waived by
Borrower. In addition, Borrower hereby waives the provisions of any law prohibiting Lender from making such an election, including, without limitation, the provisions of California Code of Civil Procedure commencing with Section 1265.210. If the net
proceeds of the condemnation award are made available to Borrower for restoration or repair, the net proceeds of the condemnation award shall be disbursed upon satisfaction of and in accordance with the terms and conditions set forth in this
Section 6.3. 
  
 Section 6.4 Restoration. The
following provisions shall apply in connection with the Restoration: 
  
 (a) If the Net Proceeds shall be less than Five Hundred Thousand and No/100 Dollars ($500,000.00) and the costs of completing the Restoration shall be less than Five Hundred Thousand and No/100 Dollars ($500,000.00),
the Net Proceeds will be disbursed by Lender to Borrower upon receipt, provided that all of the conditions set forth in Section 6.4(b)(i) are met and Borrower delivers to Lender a written undertaking to expeditiously commence and to
satisfactorily complete with due diligence the Restoration in accordance with the terms of this Agreement. 
  

 77 

 (b) If the Net Proceeds are equal to or greater than Five Hundred Thousand and No/100
Dollars ($500,000.00) or the costs of completing the Restoration is equal to or greater than One Million and No/100 Dollars ($1,000,000.00), the Net Proceeds will be held by Lender and Lender shall make the Net Proceeds available for the Restoration
in accordance with the provisions of this Section 6.4. The term “Net Proceeds” for purposes of this Section 6.4 shall mean: (i) the net amount of all insurance proceeds received by Lender pursuant to Section 6.1
(a)(i), (iv), (vi), (ix) and (x) as a result of such damage or destruction, after deduction of its reasonable costs and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same
(“Insurance Proceeds”), or (ii) the net amount of the Award, after deduction of Lender’s reasonable costs and expenses (including, but not limited to, reasonable counsel costs and fees), if any, in collecting same
(“Condemnation Proceeds”), whichever the case may be. 
  

	 	(i)	The Net Proceeds shall be made available to Borrower for Restoration upon the approval of Lender in its sole discretion that the following conditions are met:

  
 (A) no Event of Default shall
have occurred and be continuing; 
  
 (B) (1) in
the event the Net Proceeds are Insurance Proceeds, less than twenty-five percent (25%) of the total floor area of the Improvements on the Property has been damaged, destroyed or rendered unusable as a result of such Casualty, or (2) in the event the
Net Proceeds are Condemnation Proceeds, less than ten percent (10%) of the land constituting the Property is taken, and such land is located along the perimeter or periphery of the Property, and no material portion of the Improvements is located on
such land; 
  
 (C) Borrower shall commence
Restoration as soon as reasonably practicable (but in no event later than sixty (60) days after such Casualty or Condemnation, whichever the case may be, occurs) and shall diligently pursue the same to satisfactory completion (it being agreed that
the development of Building Plans shall constitute commencement of the Restoration); 
  
 (D) Lender shall be satisfied that any operating deficits, including all scheduled payments of principal and interest under the Note,
which will be incurred with respect to the Property as a result of the occurrence of any such Casualty or Condemnation, whichever the case may be, will be covered out of (1) the Net Proceeds, (2) the insurance coverage referred to in Section
6.1(a)(iii), if applicable, or (3) by other funds of Borrower; 
  
 (E) Lender shall be satisfied that Restoration will be completed on or before the earliest to occur of (1) three (3) months prior to the Maturity Date as the same is extended pursuant to Section 2.7 hereof (and
if necessary to satisfy this requirement, the period set forth in Section 2.7 during which Borrower may exercise any option to extend the term of the Loan shall be extended to permit Borrower to exercise such extension option, but in no event
more than twelve (12) 

  

 78 

 
months prior to the then Maturity Date, (2) such time as may be required under applicable Legal Requirements, or (3) the expiration of the insurance coverage
referred to in Section 6.1(a)(iii) unless Borrower has deposited with Lender prior to the commencement of the Restoration sums sufficient after the expiration of such insurance to (x) operate the Property in a manner consistent with the
manner in which the Property was operated immediately prior to such Casualty or Condemnation and (y) pay all sums as they become due under the Loan in a timely manner; 
  
 (F) the Property and the use thereof after Restoration will be in compliance with and permitted under all
applicable Legal Requirements; 
  
 (G)
Restoration shall be done and completed by Borrower in an expeditious and diligent fashion and in compliance with all applicable Legal Requirements; 
  
 (H) such Casualty or Condemnation, as applicable, does not result in the loss of access to the Property or the related Improvements;

  
 (I) upon completion of the Restoration, the
projected Net Operating Income for the following twelve (12) month period as reasonably estimated by Lender, shall be sufficient to achieve a Debt Service Coverage Ratio of at least 1.50 to 1.00 (and for purposes of this clause (I) only, the Debt
Service Coverage Ratio shall be calculated at the interest rate computed in accordance with the provisions of this Agreement at a deemed annual rate of 8.20%); 
  

(J) Borrower shall deliver, or cause to be delivered, to Lender a signed detailed budget approved in writing by Borrower’s
architect or engineer stating the entire cost of completing the Restoration; and 
  
 (K) the Net Proceeds together with any cash or cash equivalent deposited by Borrower with Lender are sufficient in Lender’s
reasonable discretion to cover the cost of Restoration. 
  

	 	(ii)	 The Net Proceeds shall be paid directly to Lender for deposit in an interest-bearing account and, until disbursed in accordance with the provisions of this
Section 6.4(b), shall constitute additional security for the Debt and the Other Obligations. The Net Proceeds shall be disbursed by Lender to, or as directed by, Borrower from time to time during the course of Restoration, upon receipt of
evidence satisfactory to Lender that (A) all materials installed and work and labor performed (except to the extent that they are to be paid for out of the requested disbursement) in connection with Restoration have been paid for in full, and (B)
there exist no notices of pendency, stop orders, mechanic’s or materialman’s liens or notices of intention to file same, or any other liens or encumbrances of any nature whatsoever on the Property which 

  

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have not either been fully bonded to the satisfaction of Lender and discharged of record or in the alternative fully insured to the satisfaction of Lender by
the Title Company; provided, however, Lender shall disburse to, or as directed by, Borrower up to ten percent (10%) of the Net Proceeds received by Lender to fund deposits to contractors, subcontractors and/or materialmen when
necessary, to secure timely performance of the Restoration, due to the occurrence of a catastrophic event such as a hurricane or earthquake, upon receipt of evidence satisfactory to Lender that such deposits are required to be paid. Notwithstanding
the foregoing, Lender shall have no obligation under this paragraph unless and until Net Proceeds have been received by it and Borrower has complied with the provisions of the preceding sentence. 

  

	 	(iii)	All plans and specifications required in connection with the Restoration shall be subject to prior review and reasonable acceptance in all respects by Lender and by an independent
consulting engineer selected by Lender (the “Casualty Consultant”). In connection with the delivery of the plans and specifications to Lender and/or Casualty Consultant by Borrower, if Borrower marks such delivery with a legend
marked in not less than fourteen (14) point bold face type, underlined, in all capital letters “ATTACHED PLANS AND SPECIFICATIONS DEEMED APPROVED IF NO RESPONSE WITHIN FIFTEEN (15) BUSINESS DAYS”, and Lender and/or the Casualty Consultant
fails to respond to the delivery of such plans and specifications within such fifteen (15) Business Day period, Lender shall be deemed to have approved such Plans and Specifications. Lender shall have the use of the plans and specifications and all
permits, licenses and approvals required or obtained in connection with the Restoration. The identity of the contractors, subcontractors and materialmen engaged in the Restoration, as well as the contracts under which they have been engaged, shall
be subject to prior review and reasonable acceptance by Lender and the Casualty Consultant. All reasonable costs and expenses incurred by Lender in connection with making the Net Proceeds available for Restoration including, without limitation,
reasonable counsel fees and disbursements and the reasonable Casualty Consultant’s fees, shall be paid by Borrower. 

  

	 	(iv)	 In no event shall Lender be obligated to make disbursements of the Net Proceeds in excess of an amount equal to the costs actually incurred from time to time for
work in place as part of the Restoration, as certified by the Casualty Consultant, minus the Casualty Retainage. The term “Casualty Retainage” shall mean, as to each contractor, subcontractor or materialman engaged in the 

  

 80 

	 	 
Restoration, an amount equal to ten percent (10%) of the costs actually incurred for work in place as part of the Restoration, as certified by the Casualty
Consultant, until Restoration has been fifty percent (50%) completed, at which point no additional Retainage shall be required (i.e., upon completion of the Restoration the Retainage shall equal 5% of the cost of the work). The Casualty Retainage
shall in no event, and notwithstanding anything to the contrary set forth above in this Section 6.4(b), be less than the amount actually held back by Borrower from contractors, subcontractors and materialmen engaged in the Restoration. The
Casualty Retainage shall not be released until the Casualty Consultant certifies to Lender that Restoration has been completed in accordance with the provisions of this Section 6.4(b) and that all approvals necessary for the re-occupancy and
use of the Property have been obtained from all appropriate Governmental Authorities, and Lender receives evidence reasonably satisfactory to Lender that the costs of Restoration have been paid in full or will be paid in full out of the Casualty
Retainage; provided, however, that Lender will release the portion of the Casualty Retainage being held with respect to any contractor, subcontractor or materialman engaged in the Restoration as of the date upon which the Casualty Consultant
certifies to Lender that the contractor, subcontractor or materialman has satisfactorily completed all work and has supplied all materials in accordance with the provisions of the contractor’s, subcontractor’s or materialman’s
contract, the contractor, subcontractor or materialman delivers the lien waivers and evidence of payment in full of all sums due to the contractor, subcontractor or materialman as may be reasonably requested by Lender or by the Title Company, and,
provided that the State in which the Property is located is a jurisdiction in which the priority of the Lien of the Mortgage will not be affected by intervening mechanic’s liens, the Lender receives an update to the Title Insurance Policy
indicating the continued priority of the Lien of the Mortgage. If required by Lender, the release of any such portion of the Casualty Retainage shall be approved by the surety company, if any, which has issued a payment or performance bond with
respect to the contractor, subcontractor or materialman. 

  

	 	(v)	Lender shall not be obligated to make disbursements of the Net Proceeds more frequently than once every calendar month. 

  

	 	(vi)	 If at any time the Net Proceeds or the undisbursed balance thereof shall not, in the opinion of Lender in consultation with the Casualty Consultant, be sufficient
to pay in full the balance of the costs which are reasonably estimated by the Casualty Consultant to be incurred in connection with the completion of the Restoration, 

  

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Borrower shall deposit the deficiency (the “Net Proceeds Deficiency”) with Lender before any further disbursement of the Net Proceeds shall
be made. The Net Proceeds Deficiency deposited with Lender shall be held by Lender and shall be disbursed for costs actually incurred in connection with the Restoration on the same conditions applicable to the disbursement of the Net Proceeds, and
until so disbursed pursuant to this Section 6.4(b) shall constitute additional security for the Debt and the Other Obligations. 

  

	 	(vii)	The excess, if any, of the Net Proceeds and the remaining balance, if any, of the Net Proceeds Deficiency deposited with Lender after the Casualty Consultant certifies to Lender
that Restoration has been completed in accordance with the provisions of this Section 6.4(b), and the receipt by Lender of evidence satisfactory to Lender that all costs incurred in connection with the Restoration have been paid in full,
shall be remitted by Lender to Borrower, provided no Event of Default shall have occurred and shall be continuing. 

  
 (c) All Net Proceeds not required (i) to be made available for Restoration, or (ii) to be returned to Borrower as excess Net Proceeds
pursuant to Section 6.4(b)(vii) may be retained and applied by Lender in accordance with Section 2.4.2 hereof toward the payment of the Outstanding Principal Balance whether or not then due and payable in such order, priority and
proportions as Lender in its sole discretion shall deem proper, or, in the sole discretion of Lender, the same may be paid, either in whole or in part, to Borrower for such purposes as Lender shall approve, in its sole discretion. 
  
 (d) In the event of foreclosure of the Mortgage, or other
transfer of title to the Property in extinguishment in whole or in part of the Debt, all right, title and interest of Borrower in and to the Policies that are not blanket Policies then in force concerning the Property and all proceeds payable
thereunder shall thereupon vest in the purchaser at such foreclosure or Lender or other transferee in the event of such other transfer of title. 
  
 (e) Notwithstanding any provision to the contrary contained herein, in the event of any conflict between the terms of this Agreement or
any other Loan Document and the terms of the Ground Lease, the terms of the Ground Lease shall control. 
  
 ARTICLE 7 
  
 RESERVE FUNDS 
  
 Section 7.1
Intentionally Omitted. 
  
 Section 7.2 Tax and Insurance
Escrow Funds. On the date hereof, Borrower shall deposit with Lender $71,280.09 on account of the Taxes next coming due and $30,732.31 on account of the Insurance Premiums next coming due. Additionally, Borrower shall pay to 

  

 82 

 
Lender on each Payment Date (a) one-twelfth of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to
accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (b) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded
by the Policies upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies (the foregoing amounts deposited with Lender on the
date hereof and in clauses (a) and (b) above are hereinafter called the “Tax and Insurance Escrow Funds”). The Tax and Insurance Escrow Funds and the payment of the monthly Debt Service, shall be added together and shall be paid as
an aggregate sum by Borrower to Lender. Lender will apply the Tax and Insurance Escrow Funds to payments of Taxes and Insurance Premiums required to be made by Borrower pursuant to Section 5.1.2 hereof and under the Mortgage. In making any
payment relating to the Tax and Insurance Escrow Funds, Lender may do so according to any bill, statement or estimate procured from the appropriate public office (with respect to Taxes) or insurer or agent (with respect to Insurance Premiums),
without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof. If the amount of the Tax and Insurance Escrow Funds shall exceed the amounts due
for Taxes and Insurance Premiums pursuant to Section 5.1.2 hereof, Lender shall, following written request by Borrower, promptly return any excess to Borrower. Any amount remaining in the Tax and Insurance Escrow Funds after the Debt has been
paid in full shall be returned to Borrower. In allocating such excess, Lender may deal with the Person shown on the records of Lender to be the owner of the Property. If at any time Lender reasonably determines that the Tax and Insurance Escrow
Funds are not or will not be sufficient to pay Taxes and Insurance Premiums by the dates set forth in (a) and (b) above, Lender shall notify Borrower of such determination and Borrower shall increase its monthly payments to Lender by the amount that
Lender estimates is sufficient to make up the deficiency at least thirty (30) days prior to the due date of the Taxes and/or thirty (30) days prior to expiration of the Policies, as the case may be. 
  
 Section 7.3 FF&E Reserve. 
  
 7.3.1 FF&E Reserve Funds. Borrower shall deposit
with Lender on the Closing Date one-twelfth of the amount of the Approved FF&E Budget (the “FF&E Reserve Deposit”). The amount of the FF&E Reserve Deposit shall be recalculated annually during the term of the Loan, as of
January 1 of each year (or as soon thereafter as Gross Income from Operations for the preceding year shall be determined to Lender’s reasonable satisfaction) such that the FF&E Reserve Deposit shall be equal to four (4%) percent of the
prior year’s Gross Income from Operations divided by twelve (12). Amounts so deposited shall hereinafter be referred to as Borrower’s “FF&E Reserve Funds” and the account in which such amounts are held shall
hereinafter be referred to as Borrower’s “FF&E Reserve Account.” Within thirty (30) days following the end of each calendar quarter, Borrower shall provide to Lender a preliminary report with respect to the expenditures
made by or on behalf of Borrower with respect to the Property for FF&E during such calendar quarter. In the event that the lesser of (a) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual FF&E Budget
is not less than four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, exceeds the actual expenditures made by Borrower for FF&E for such
quarter, Borrower shall deposit an 

  

 83 

 
amount equal to any such difference in the FF&E Reserve Account to be held as FF&E Reserve Funds to be disbursed pursuant to the provisions of this
Section 7.3. Notwithstanding the foregoing, the amount of any such deposit required to be made by Borrower shall be reduced by the amount of any actual expenditure made by Borrower for any FF&E completed prior to the calendar quarter in
which such FF&E was scheduled to be made pursuant to the Approved Annual FF&E Budget. If the actual expenditures made by Borrower for FF&E exceeds the lesser of (x) the Approved Annual FF&E Budget for such calendar quarter (provided
such Approved Annual FF&E Budget is not less than four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, Lender shall reimburse Borrower for
such excess to the extent that funds are available from the FF&E Reserve Account within fifteen (15) days from Borrower’s request. To the extent there are not sufficient funds in the FF&E Reserve Account to reimburse Borrower for any
excess actual expenditures during such calendar quarter, such excess expenditures shall be added to the actual expenditures for the next calendar quarter in the determination of any amounts required to be deposited in the FF&E Reserve Account
for such calendar quarter. In lieu of making any required deposits to the FF&E Reserve Account (other than the FF&E Reserve Deposit), Borrower may deliver to Lender a Letter of Credit in an amount equal to the amount that is required to be
deposited into the FF&E Reserve Account. Such Letter of Credit shall constitute additional collateral for the Loan and Lender shall have the right to draw down upon such Letter of Credit and apply the proceeds thereof for purposes set forth in
the Approved FF&E Budget if Borrower fails to do so within a reasonable time after notice from Lender, or Lender may apply such sums as otherwise provided in this Agreement following an Event of Default. All earnings or interest on the FF&E
Reserve Funds shall be and become part of the FF&E Reserve Funds and shall be disbursed as provided in this Section 7.3. 
  
 7.3.2 Disbursements from FF&E Reserve Account. Lender shall make disbursements from the FF&E Reserve Account as provided in
Section 7.3.1 following request by Borrower, and, if required by Lender for disbursements in excess of $100,000.00 for a single item, lien waivers and releases from all parties furnishing materials and/or services in connection with the
requested payment. Lender may require an inspection of the Property at Borrower’s expense prior to making a monthly disbursement in order to verify completion of replacements and repairs of items in excess of $100,000.00 for which reimbursement
is sought. 
  
 7.3.3 Balance in the FF&E
Account. The insufficiency of any balance in the FF&E Reserve Account shall not relieve Borrower from its obligation to fulfill all preservation and maintenance covenants in the Loan Documents. 
  
 Section 7.4 Ground Rent Reserve Funds. 
  
 7.4.1 Deposits of Ground Rent Reserve Funds. From and
after the occurrence and during the continuance of a Sweep Event, Borrower shall deposit with or on behalf of Lender, on each Monthly Payment Date, an amount equal to the Ground Rent that will be payable under the Ground Lease for the month in which
such Monthly Payment Date occurs, which amounts shall be transferred into an Account established with Servicer to hold such funds (the “Ground Rent Account”). Such deposit may be increased from time to time by Lender in such amount
as Lender shall deem to be necessary in its reasonable discretion to reflect any increases in the Ground Rent. Amounts deposited from time to time into the Ground Rent 

  

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Account pursuant to this Section 6.8.1 are referred to herein as the “Ground Rent Reserve Funds”. 
  
 7.4.2 Release of Ground Rent Reserve Funds. Provided
no Event of Default has occurred and is continuing, Lender shall apply the Ground Rent Reserve Funds to payments of Ground Rent. In making any payment relating to Ground Rent, Lender may do so according to any bill or statement given by or on behalf
of Ground Lessor without inquiry into the accuracy of such bill or statement or into the validity of any rent, additional rent or other charge thereof. If the amount of the Ground Rent Reserve Funds shall exceed the amounts due for Ground Rent,
Lender shall, in its sole discretion, either (a) return any excess to Borrower or (b) credit such excess against future payments to be made to the Ground Rent Reserve Funds. Any Ground Rent Reserve Funds remaining after the Obligations have been
paid in full shall be returned to Borrower. 
  
 Section 7.5
Debt Service Reserve. 
  
 7.5.1 Debt
Service Reserve Funds. Borrower shall deposit with Lender on the Closing Date the sum of $79,950.00 (the “Debt Service Reserve”). Amounts so deposited shall hereinafter be referred to as the “Debt Service Reserve
Funds” and the account in which such amounts are held shall hereinafter be referred to as the “Debt Service Reserve Account.” The Debt Service Reserve will be available for use by Borrower in the event that Net Cash Flow
from the Property for any month shall be less than Debt Service for such month. In lieu of making any required deposits to the Debt Service Reserve Account, Borrower may deliver to Lender a Letter of Credit in an amount equal to the amount that is
required to be deposited into the Debt Service Reserve Account. All earnings or interest on the Debt Service Reserve Fund shall be and become part of such Debt Service Reserve Fund and shall be disbursed as provided in this Section 7.5.

  
 In the event Net Cash Flow equals or exceeds
$8,000,000.00 for the preceding twelve (12) consecutive month period, the Debt Service Reserve Funds will be released to Borrower following Borrower’s written request therefor. 
  
 7.5.2 Disbursements from Debt Service Reserve Account. Provided no Release Default or Event of
Default exists, Lender shall make disbursements from the Debt Service Reserve Account as requested by Borrower to the extent such funds are available, no more frequently than once in any thirty (30) day period in the event that Net Cash Flow is less
than Debt Service for such month. 
  
 7.5.3
Balance in the Debt Service Account. The insufficiency of any balance in the Debt Service Reserve Account shall not relieve Borrower from its obligation to pay the Monthly Interest Payment when due hereunder. 
  
 Section 7.6 Reserve Funds, Generally. 
  
 (a) Borrower grants to Lender a first-priority perfected
security interest in all of the Reserve Funds and any and all monies now or hereafter deposited in each Reserve Fund as additional security for the Obligations. Until expended or applied in accordance herewith, the Reserve Funds shall constitute
additional security for payment of the Obligations. Upon the 

  

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occurrence of an Event of Default, Lender may, in addition to any and all other rights and remedies available to Lender, apply any sums then present in any
or all of the Reserve Funds to the reduction of the Outstanding Principal Balance in any order in its sole discretion. The Reserve Funds shall not constitute trust funds and may be commingled with other monies held by Lender. 
  
 (b) Borrower shall not, without obtaining the prior consent
of Lender, further pledge, assign or grant any security interest in any Reserve Fund or the monies deposited therein or permit any lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements, except those
naming Lender as the secured party, to be filed with respect thereto. 
  
 (c) The Reserve Funds shall be held in an Eligible Account and shall bear interest at a money market rate selected by Lender. All interest or other earnings on a Reserve Fund shall be added to and become a part of
such Reserve Fund and shall be disbursed in the same manner as other monies deposited in such Reserve Fund. Borrower shall have the right to direct Lender to invest sums on deposit in the Eligible Account in Permitted Investments
provided (a) such investments are then regularly offered by Lender for accounts of this size, category and type, (b) such investments are permitted by applicable federal, state and local rules, regulations and laws, (c) the maturity date of
the Permitted Investment is not later than the date on which the applicable Reserve Funds are required for payment of an obligation for which such Reserve Fund was created, and (d) no Event of Default shall have occurred and be continuing. Borrower
shall be responsible for payment of any federal, state or local income or other tax applicable to the interest or income earned on the Reserve Funds. No other investments of the sums on deposit in the Reserve Funds shall be permitted except as set
forth in this Section 7.5. Borrower shall bear all reasonable costs associated with the investment of the sums in the account in Permitted Investments. Such costs shall be deducted from the income or earnings on such investment, if any, and
to the extent such income or earnings shall not be sufficient to pay such costs, such costs shall be paid by Borrower promptly on demand by Lender. Lender shall have no liability for the rate of return earned or losses incurred on the investment of
the sums in Permitted Investments. 
  
 (d)
Borrower shall indemnify Lender and hold Lender harmless from and against any and all actions, suits, claims, demands, liabilities, losses, damages, obligations and costs and expenses (including litigation costs and reasonable attorneys fees and
expenses) arising from or in any way connected with the Reserve Funds or the performance of the obligations for which the Reserve Funds were established. Borrower shall assign to Lender all rights and claims Borrower may have against all Persons
supplying labor, materials or other services which are to be paid from or secured by the Reserve Funds; provided, however, that Lender may not pursue any such right or claim unless an Event of Default has occurred and remains
uncured. 
  
 (e) After payment in full of all
sums evidenced by the Note and secured by the Mortgage and release or assignment by Lender of the lien of the Mortgage, Lender shall disburse to Borrower all amounts remaining in the Reserves. 
  

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 ARTICLE 8 
  

DEFAULTS 
  
 Section 8.1 Event of Default. 
  
 (a) Each of the following events shall constitute an event of default hereunder (an “Event of Default”): 
  

	 	(i)	if any portion of the Debt is not paid when due (subject to Borrower having deposited with Lender in accordance with Section 2.6.4 sums sufficient to pay such amounts when
due); 

  

	 	(ii)	intentionally omitted; 

  

	 	(iii)	if any of the Taxes are not paid when the same are due and payable or the Other Charges are not paid prior to delinquency; 

  

	 	(iv)	if the Policies are not kept in full force and effect, or if satisfactory evidence of the insurance coverage required hereunder or any other Loan Document is not delivered to Lender
within ten (10) days of request; 

  

	 	(v)	if any Transfer is made in violation of the terms of this Agreement or any other Loan Document; 

  

	 	(vi)	if any representation or warranty made by, or on behalf of, Borrower or any other Significant Party herein or in any other Loan Document, or in any report, certificate, Financial
Statement or other instrument, agreement or document furnished to Lender shall have been false or misleading in any material respect as of the date the representation or warranty was made; 

  

	 	(vii)	if any Significant Party shall make an assignment for the benefit of creditors; 

  

	 	(viii)	if a receiver, liquidator or trustee shall be appointed for any Significant Party, or if any Significant Party shall be adjudicated a bankrupt or insolvent, or if any petition for
bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by or against, consented to, or acquiesced in by, any Significant Party, or if any proceeding for the dissolution or
liquidation of any Significant Party shall be instituted; provided, however, if such appointment, adjudication, petition or proceeding was involuntary and not consented to by such Significant Party, upon the same not being discharged,
stayed or dismissed within ninety (90) days; 

  

 87 

	 	(ix)	if Borrower attempts to assign its rights under this Agreement or any of the other Loan Documents or any interest herein or therein in contravention of the Loan Documents;

  

	 	(x)	if Borrower breaches any of its respective negative covenants contained in Section 5.2 or Section 5.1.11 (other than those covenants contained in Section 5.2
which are otherwise expressly provided for in this Section 8.1 hereof) and such breach is not cured after ten (10) days notice from Lender or if Borrower breaches any covenant contained in Section 4.1.30; 

  

	 	(xi)	if any of the assumptions contained in the Insolvency Opinion delivered to Lender in connection with the Loan, or in the Additional Insolvency Opinion delivered subsequent to the
closing of the Loan, is or shall become untrue in any material respect unless such matter is cured in a timely manner without any adverse consequences to the Loan or to Lender; 

  

	 	(xii)	if a material default has occurred and continues beyond any applicable cure period under the Management Agreement (or any Replacement Management Agreement) and if such default
permits the Manager thereunder to terminate or cancel the Management Agreement (or any Replacement Management Agreement) and Borrower fails to replace Manager with a Qualified Manager; 

  

	 	(xiii)	if at any time an “Event of Default” shall occur under and as defined in any one or more of the Other Borrower Loan Documents; 

  

	 	(xiv)	if at any time a default shall occur and continue beyond the expiration of applicable notice and cure periods under any Junior Lender Security Document; 

  

	 	(xv)	 if Borrower shall continue to be in Default under any of the other terms, covenants or conditions of this Agreement not specified in subsections (i) to (xii) above,
for ten (10) Business Days after notice to Borrower from Lender, in the case of any Default which can be cured by the payment of a sum of money, or for thirty (30) days after notice from Lender in the case of any other Default;
provided, however, that if such non-monetary Default is susceptible of cure but cannot reasonably be cured within such thirty (30) day period and provided further that Borrower shall have commenced to cure such
Default within such thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for such time as is reasonably necessary for Borrower in the exercise of due 

  

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diligence to cure such Default, such additional period not to exceed 180 days; 

  

	 	(xvi)	If (A) there shall occur any default by Borrower, as tenant under the Ground Lease, in the observance or performance of any term, covenant or condition of the Ground Lease on the
part of Borrower to be observed or performed (unless waived by Ground Lessor), (B) if any one or more of the events referred to in the Ground Lease shall occur which would cause the Ground Lease to terminate without notice or action by Ground Lessor
or which would entitle Ground Lessor to terminate the Ground Lease and the term thereof by giving notice to Borrower, as tenant thereunder (unless waived by Ground Lessor), (C) if the leasehold estate created by the Ground Lease shall be surrendered
or the Ground Lease shall be terminated or canceled for any reason or under any circumstances whatsoever, or (D) if any of the terms, covenants or conditions of the Ground Lease shall in any manner be modified, changed, supplemented, altered or
amended without the consent of Lender except as otherwise permitted by this Agreement; 

  

	 	(xvii)	if at any time Borrower shall fail to cause all Rents to be paid directly to the Property Account as provided herein and in the Cash Management Agreement and the Property Account
Agreement; or 

  

	 	(xviii)	if there shall be default under any of the other Loan Documents beyond any applicable cure periods contained in such documents, whether as to Borrower or the Property, or if any
other such event shall occur or condition shall exist, if the effect of such event or condition is to accelerate the maturity of any portion of the Debt or to permit Lender to accelerate the maturity of all or any portion of the Debt.

  
 (b) Upon the occurrence of an
Event of Default (other than an Event of Default described in clauses (vi), (vii) or (viii) above) and at any time thereafter, in addition to any other rights or remedies available to it pursuant to this Agreement and the other Loan Documents or at
law or in equity, Lender may take such action, without notice or demand, that Lender deems advisable to protect and enforce its rights against Borrower and in and to the Property, including, without limitation, declaring the Obligations to be
immediately due and payable, and Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower and the Property, including, without limitation, all rights or remedies available at law or in
equity; and upon any Event of Default described in clauses (vi), (vii) or (viii) above, the Debt and all Other Obligations of Borrower hereunder and under the other Loan Documents shall immediately and automatically become due and payable, without
notice or demand, and Borrower hereby expressly waives any such notice or demand, anything contained herein or in any other Loan Document to the contrary notwithstanding. 
  

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 Section 8.2 Remedies. 
  
 (a) Upon the occurrence of an Event of Default, all or any one or more of the rights, powers, privileges and
other remedies available to Lender against Borrower under this Agreement or any of the other Loan Documents executed and delivered by, or applicable to, Borrower or at law or in equity may be exercised by Lender at any time and from time to time,
whether or not all or any of the Debt shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action for the enforcement of its rights and remedies under any of the Loan Documents. Any
such actions taken by Lender shall be cumulative and concurrent and may be pursued independently, singularly, successively, together or otherwise, at such time and in such order as Lender may determine in its sole discretion, to the fullest extent
permitted by law, without impairing or otherwise affecting the other rights and remedies of Lender permitted by law, equity or contract or as set forth herein or in the other Loan Documents. Without limiting the generality of the foregoing, Borrower
agrees that if an Event of Default is continuing (i) Lender shall not be subject to any “one action” or “election of remedies” law or rule, and (ii) all liens and other rights, remedies or privileges provided to Lender shall
remain in full force and effect until Lender has exhausted all of its remedies against the Property and the Mortgage has been foreclosed, sold and/or otherwise realized upon in satisfaction of the Debt or the Obligations have been paid in full.

  
 (b) Lender shall have the right from time to
time to sever the Note and the other Loan Documents into one or more separate notes, mortgages and other security documents (the “Severed Loan Documents”) in such denominations as Lender shall determine in its sole discretion for
purposes of evidencing and enforcing its rights and remedies provided hereunder. Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and such other documents as Lender shall
request in order to effect the severance described in the preceding sentence, all in form and substance reasonably satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an
interest, in its name and stead to make and execute all documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue thereof; provided, however, Lender
shall not make or execute any such documents under such power until three (3) days after notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under such power. Borrower shall not be obligated to pay any costs or
expenses incurred in connection with the preparation, execution, recording or filing of the Severed Loan Documents. Further, the Severed Loan Documents shall not contain any representations, warranties or covenants not contained in the Loan
Documents and any such representations and warranties contained in the Severed Loan Documents will be given by Borrower only as of the Closing Date. 
  
 (c) Lender shall have the right from time to time to partially foreclose the Mortgage in any manner and for any amounts secured by the
Mortgage then due and payable as determined by Lender in its sole discretion, including the following circumstances: (i) in the event Borrower defaults beyond any applicable grace period in the payment of one or more scheduled payments of principal
and/or interest, Lender may foreclose the Mortgage to recover such delinquent payments, or (ii) in the event Lender elects to accelerate less than the entire Outstanding Principal Balance, Lender may foreclose the Mortgage to recover so much of the
Debt as Lender may accelerate and such other sums secured by the Mortgage as Lender may 

  

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elect. Notwithstanding one or more partial foreclosures, the Property shall remain subject to the Mortgage to secure payment of sums secured by the Mortgage
and not previously recovered. 
  
 (d) Any amounts
recovered from the Property or any other collateral for the Loan after an Event of Default may be applied by Lender toward the payment of any interest and/or principal of the Loan and/or any other amounts due under the Loan Documents in such order,
priority and proportions as Lender in its sole discretion shall determine. 
  
 (e) Without limiting the generality of the foregoing or otherwise impairing or 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, Borrower agrees that if an Event of Default has occurred and is continuing Lender shall have the right to immediately draw down in full upon any Letter of Credit delivered by, or on behalf of Borrower pursuant to the terms of this
Agreement or any of the other Loan Documents, and apply the proceeds of such draw towards the payment of any interest and/or principal of the Loan and/or any other amounts due under the Loan Documents in such order, priority and proportions as
Lender in its sole discretion shall determine. 
  
 (f) Remedies Cumulative; Waivers. The rights, powers and remedies of Lender under this Agreement shall be cumulative and not exclusive of any other right, power or remedy which Lender may have against Borrower pursuant to this
Agreement or the other Loan Documents, or existing at law or in equity or otherwise. Lender’s rights, powers and remedies may be pursued singularly, concurrently or otherwise, at such time and in such order as Lender may determine in
Lender’s sole discretion. No delay or omission to exercise any remedy, right or power accruing upon an Event of Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power
may be exercised from time to time and as often as may be deemed expedient. A waiver of one Default or Event of Default with respect to Borrower shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to
impair any remedy, right or power consequent thereon. 
  
 ARTICLE 9 
  
 SPECIAL PROVISIONS

  
 Section 9.1 Sale of Note and Securitization.
Borrower acknowledges and agrees that Lender may sell all or any portion of the Loan and the Loan Documents, or issue one or more participations therein, or consummate one or more private or public securitizations of rated single- or multi-class
securities (the “Securities”) secured by or evidencing ownership interests in all or any portion of the Loan and the Loan Documents or a pool of assets that include the Loan and the Loan Documents (such sales, participations and/or
securitizations, collectively, a “Securitization”). At the request of Lender, and to the extent not already required to be provided by Borrower under this Agreement, Borrower shall use reasonable efforts to provide information not
in the possession of Lender or which may be reasonably required by Lender in order to satisfy the market standards to which Lender customarily adheres or which may be reasonably required by prospective investors and/or the Rating Agencies in
connection with any such Securitization including, without limitation, to: 
  
 (a) provide additional and/or updated Provided Information, together with appropriate verification and/or consents related to the Provided Information through letters of auditors or opinions of counsel of independent
attorneys reasonably acceptable to Lender and the Rating Agencies; 
  

 91 

 (b) assist in preparing descriptive materials for presentations to any or all of the
Rating Agencies, and work with, and if requested, supervise, third-party service providers engaged by Borrower, Principal and their respective affiliates to obtain, collect, and deliver information requested or required by Lender or the Rating
Agencies; 
  
 (c) if required by the Rating
Agencies, deliver (i) updated opinions of counsel as to non-consolidation, due execution and enforceability with respect to the Property, Borrower, Principal and their respective Affiliates and the Loan Documents, and (ii) revised organizational
documents for Borrower, which counsel opinions and organizational documents shall be reasonably satisfactory to Lender and the Rating Agencies; 
  
 (d) if required by any Rating Agency, use commercially reasonable efforts to deliver such additional tenant estoppel letters,
subordination agreements or other agreements from parties to agreements that affect the Property, which estoppel letters, subordination agreements or other agreements shall be reasonably satisfactory to Lender and the Rating Agencies; 
  
 (e) make such representations and warranties as of the
closing date of the Securitization with respect to the Property, Borrower, Principal and the Loan Documents as may be reasonably requested by Lender or the Rating Agencies and consistent with the facts covered by such representations and warranties
as they exist on the date thereof, including the representations and warranties made in the Loan Documents; 
  
 (f) execute such non-material amendments to the Loan Documents as may be requested by Lender or the Rating Agencies to effect the
Securitization; 
  
 (g) if requested by Lender,
review any information regarding the Property, Borrower, Principal, the Manager and the Loan which is contained in a preliminary or final private placement memorandum, prospectus, prospectus supplement (including any amendment or supplement to
either thereof), or other disclosure document to be used by Lender or any affiliate thereof; and 
  
 (h) supply to Lender such documentation, financial statements and reports concerning Borrower, Principal, Guarantor, the Loan and/or the
Property in form and substance required in order to comply with any applicable securities laws. 
  
 All reasonable third party costs and expenses incurred by Borrower or Lender in connection with Borrower’s complying with requests made under this
Section 9.1 (including, without limitation, the fees and expenses of the Rating Agencies) shall be paid by Lender. 
  

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

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

  

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actual or potential party to such claim, action, suit or proceeding) unless the Indemnifying Person shall have given CSFB reasonable prior notice thereof and
shall have obtained an unconditional release of each Indemnified Person hereunder from all liability arising out of such claim, action, suit or proceeding. As long as an Indemnifying Person has complied with its obligations to defend and indemnify
hereunder, such Indemnifying Person shall not be liable for any settlement made by any Indemnified Person without the consent of such Indemnifying Person (which consent shall not be unreasonably withheld). 
  
 (f) The Indemnifying Persons agree that if any
indemnification or reimbursement sought pursuant to this Section 9.2 is finally judicially determined to be unavailable for any reason or is insufficient to hold any Indemnified Person harmless (with respect only to the Liabilities that are
the subject of this Section 9.2), then the Indemnifying Persons, on the one hand, and such Indemnified Person, on the other hand, shall contribute to the Liabilities for which such indemnification or reimbursement is held unavailable or is
insufficient: (x) in such proportion as is appropriate to reflect the relative benefits to the Indemnifying Persons, on the one hand, and such Indemnified Person, on the other hand, from the transactions to which such indemnification or
reimbursement relates; or (y) if the allocation provided by clause (x) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (x) but also the relative faults of
the Indemnifying Persons, on the one hand, and all Indemnified Persons, on the other hand, as well as any other equitable considerations. Notwithstanding the provisions of this Section 9.2, (A) no party found liable for a fraudulent
misrepresentation shall be entitled to contribution from any other party who is not also found liable for such fraudulent misrepresentation, and (B) the Indemnifying Persons agree that in no event shall the amount to be contributed by the
Indemnified Persons collectively pursuant to this paragraph exceed the amount of the fees (by underwriting discount or otherwise) actually received by the Indemnified Persons in connection with the closing of the Loan or the Securitization.

  
 (g) The Indemnifying Persons agree that the
indemnification, contribution and reimbursement obligations set forth in this Section 9.2 shall apply whether or not any Indemnified Person is a formal party to any lawsuits, claims or other proceedings. The Indemnifying Persons further agree
that the Indemnified Persons are intended third party beneficiaries under this Section 9.2. 
  
 (h) The rights, liabilities and obligations of the Indemnified Persons and the Indemnifying Persons under this Section 9.2 shall
survive the termination of this Agreement and the satisfaction and discharge of the Obligations. 
  
 (i) Notwithstanding anything to the contrary contained herein, Borrower shall have no obligation to act as depositor with respect to the
Loan or an issuer or registrant with respect to the Securities issued in any Securitization. 
  
 Section 9.3 [RESERVED] 
  
 Section
9.4 Exculpation. Subject to the qualifications below, Lender shall not enforce the liability and obligation of Borrower to perform and observe the obligations contained in the Note, this Agreement, the Mortgage or the other Loan Documents by
any action or proceeding 

  

 95 

 
wherein a money judgment shall be sought against Borrower, except that Lender may bring a foreclosure action, an action for specific performance or any other
appropriate action or proceeding to enable Lender to enforce and realize upon its interest under the Note, this Agreement, the Mortgage, the other Loan Documents, or in the Property, the Rents, or any other collateral given to Lender pursuant to the
Loan Documents; provided, however, that, except as specifically provided herein, any judgment in any such action or proceeding shall be enforceable against Borrower only to the extent of Borrower’s interest in the Property,
in the Rents and in any other collateral given to Lender, and Lender, by accepting the Note, this Agreement, the Mortgage and the other Loan Documents, agrees that it shall not sue for, seek or demand any deficiency judgment against Borrower in any
such action or proceeding under, or by reason of, or in connection with, the Note, this Agreement, the Mortgage or the other Loan Documents. The provisions of this Section shall not, however, (a) constitute a waiver, release or impairment of any
obligation evidenced or secured by any of the Loan Documents; (b) impair the right of Lender to name Borrower as a party defendant in any action or suit for foreclosure and sale under the Mortgage or the Second Mortgage; (c) affect the validity or
enforceability of any guaranty or indemnity, including without limitation, the Guaranty, the Borrower Guaranty and/or the Environmental Indemnity, made in connection with the Loan or any of the rights and remedies of Lender thereunder; (d) impair
the right of Lender to obtain the appointment of a receiver; (e) impair the enforcement of the Assignment of Leases; (f) constitute a prohibition against Lender to seek a deficiency judgment against Borrower in order to fully realize the security
granted by the Mortgage and/or the other Loan Documents or to commence any other appropriate action or proceeding in order for Lender to exercise its remedies against the Property; or (g) constitute a waiver of the right of Lender to enforce the
liability and obligation of Borrower, by money judgment or otherwise, to the extent of any actual loss, damage, cost, expense, liability, claim or other obligation incurred by Lender (including reasonable attorneys’ fees and costs reasonably
incurred) arising out of or in connection with the following: 
  

	 	(i)	fraud or intentional misrepresentation by any Significant Party in connection with the Loan, including by reason of any claim under RICO; 

  

	 	(ii)	the gross negligence or willful misconduct of Borrower; 

  

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

  

	 	(iv)	the intentional removal or destruction of any portion of the Property by Borrower or any party acting on behalf of Borrower after an Event of Default; 

  

	 	(v)	any Legal Requirement (including RICO) mandating the forfeiture by Borrower of the Property, or any portion thereof, because of the conduct or purported conduct of criminal activity
by Borrower or any Significant Party in connection therewith; 

  

 96 

	 	(vi)	the misappropriation or conversion by or on behalf of Borrower of (A) any Insurance Proceeds paid by reason of any Casualty, (B) any Awards received in connection with a
Condemnation, (C) any Rents following an Event of Default, or (D) any Rents paid more than one (1) month in advance; 

  

	 	(vii)	failure to pay, when funds are available from the Property or Reserves, charges for labor or materials or other charges which become Liens on of the Property which were prior to the
Lien of the Mortgage; 

  

	 	(viii)	any security deposits, advance deposits or any other deposits collected with respect to the Property which are not delivered to Lender upon a foreclosure of the Property or action
in lieu thereof, except to the extent any such security deposits were applied in accordance with the terms and conditions of any of the Leases prior to the occurrence of the Event of Default that gave rise to such foreclosure or action in lieu
thereof; and 

  

	 	(ix)	failure of Borrower to direct the payment of or, pay any, Rents or other Receipts to the Property Account as required by the Loan Documents; and 

  

	 	(x)	the failure of Borrower to apply monies disbursed to it from the Cash Management Account (or any sub-account thereof) for the purpose which such disbursement is made.

  
 Notwithstanding anything to the contrary in this
Agreement, the Note or any of the Loan Documents, (A) Lender shall not be deemed to have waived any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a claim for the full
amount of the Debt secured by the Mortgage or to require that all collateral shall continue to secure all of the Obligations in accordance with the Loan Documents, and (B) the Debt shall be fully recourse to Borrower (i) in the event of: (a)
Borrower filing a voluntary petition under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (b) Borrower, or any Person acting on behalf of Borrower, soliciting or causing to be solicited petitioning creditors for any
involuntary petition against Borrower from any Person; (c) Borrower filing an answer consenting to or otherwise acquiescing in or joining in any involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other
Federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited petitioning creditors for any involuntary petition from any Person; (d) Borrower consenting to or acquiescing in or joining in an application for the appointment
of a custodian, receiver, trustee, or examiner for Borrower or any portion of the Property; (e) Borrower making an assignment for the benefit of creditors, or admitting, in writing or in any legal proceeding, its insolvency or inability to pay its
debts as they become due; (ii) if Borrower fails to maintain its status as a Single Purpose Entity; (iii) if Borrower fails to obtain Lender’s prior consent to any Indebtedness or voluntary Lien encumbering the Property as required by this
Agreement or the Mortgage; (iv) if any Restricted Party fails to obtain Lender’s prior consent to any Transfer as required by this 

  

 97 

 
Agreement or the Mortgage; or (v) an act or omission of Borrower, Principal, Guarantor or any Affiliate of Borrower, Principal, or Guarantor which hinders,
delays or interferes with Lender’s enforcement of its rights hereunder or the realization of the Collateral, including the assertion by Borrower, Principal, Guarantor or such Affiliate of defenses or counterclaims. 
  
 Further, if any Significant Party fails to provide financial information in
accordance with Section 5.1.11 hereof within a reasonable time following request by Lender therefor, Borrower shall pay an amount equal to $10,000 in order to defray the expense incurred by Lender as a result of such delay and to compensate
Lender for any losses suffered as a result of such delay. 
  
 Section 9.5 Matters Concerning Manager. If (a) the Manager shall become bankrupt or insolvent or (b) a material default occurs under the Management Agreement beyond any applicable grace and cure periods, Borrower shall, at the
request of Lender, terminate the Management Agreement and replace the Manager with a Qualified Manager pursuant to a Replacement Management Agreement, it being understood and agreed that the management fee for such replacement manager shall not
exceed then prevailing market rates. 
  
 Section 9.6
Servicer. At the option of Lender, the Loan may be serviced by a servicer/trustee (the “Servicer”) selected by Lender and Lender may delegate all or any portion of its responsibilities under this Agreement and the other Loan
Documents to the Servicer pursuant to a servicing agreement (the “Servicing Agreement”) between Lender and Servicer. Borrower shall not be responsible for any set-up fees or any other costs relating to or arising under the Servicing
Agreement; including the monthly servicing fee due to the Servicer under the Servicing Agreement. 
  
 Section 9.7 Severance of Loan Documents. Lender shall have the right, at any time (whether prior to or after any sale or participation of all or
any portion of the Loan), to modify the Loan in order to create one or more senior and subordinate notes (i.e., an A/B or A/B/C structure) and/or one or more additional components of the Note or Notes, reduce the number of components of the
Note or Notes, revise the interest rate for each component, reallocate the principal balances of the Notes and/or the components, increase or decrease the monthly debt service payments for each component or eliminate the component structure and/or
the multiple note structure of the Loan (including the elimination of the related allocations of principal and interest payments), provided that the Outstanding Principal Balance of all components immediately after the effective date of such
modification equals the Outstanding Principal Balance immediately prior to such modification and the weighted average of the interest rates for all components immediately after the effective date of such modification equals the interest rate of the
original Note immediately prior to such modification and modify the Cash Management Agreement with respect to the newly created components such that the pricing and marketability of the Securities and the size of each class of Securities and the
rating assigned to each such class by the Rating Agencies shall provide the most favorable rating levels and achieve the optimum rating levels for the Loan. Lender shall have the right to modify the Note and/or Notes and any components in accordance
with this Section 9.7 and, provided that such modification shall comply with the terms of this Section 9.7, it shall become immediately effective. If requested by Lender, Borrower shall promptly execute an amendment to the Loan
Documents to evidence any such modification. In the event Borrower fails to deliver said amendment to Lender within fifteen (15) Business Days after request, Borrower hereby absolutely and irrevocably appoints 

  

 98 

 
Lender as its true and lawful attorney-in-fact (with full power of substitution), coupled with an interest, in its name and stead to make and execute all
documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue thereof; provided, that, Lender shall not make or execute any such documents under such power until
three (3) Business Days after notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under such power. Lender shall be obligated to pay any reasonable costs or expenses incurred by Lender or Borrower in connection
with the preparation, execution, recording or filing of the Severed Loan Documents. Except as may be required in connection with a securitization, the Severed Loan Documents shall not contain any representations, warranties or covenants not
contained in the Loan Documents. 
  
 9.8 Mezzanine Loan
Option. Lender shall have the right, on or before the date which is one (1) year following the Closing Date, to divide the Loan into two parts (the “Mezzanine Option”): a mortgage loan (the “Mortgage
Loan”) and a mezzanine loan (the “Mezzanine Loan”). In such event, Borrower agrees to cause the formation of the Mezzanine Borrower. The principal amount of the Mortgage Loan plus the principal amount
of the Mezzanine Loan shall equal the outstanding principal balance of the Loan immediately prior to the creation of the Mortgage Loan and the Mezzanine Loan. In effectuating the foregoing, Mezzanine Lender will make a loan to Mezzanine Borrower;
Mezzanine Borrower will contribute the amount of the Mezzanine Loan to Borrower (in its capacity as Borrower under the Mortgage Loan, “Mortgage Borrower”) and Mortgage Borrower will apply the contribution to pay down
the Loan to its Mortgage Loan amount. The Mortgage Loan and the Mezzanine Loan will be on the same terms and subject to the same conditions set forth in this Agreement, the Note, the Mortgage and the other Loan Documents except as follows:

  
 (a) Lender (in its capacity as the lender under the Mortgage
Loan, the “Mortgage Lender”) shall have the right to establish different interest rates and debt service payments for the Mortgage Loan and the Mezzanine Loan and to require the payment of the Mortgage Loan and the
Mezzanine Loan in such order of priority as may be designated by Lender; provided, that (i) the total loan amounts for the Mortgage Loan and the Mezzanine Loan shall equal the amount of the Loan immediately prior to the creation of the Mortgage Loan
and the Mezzanine Loan, (ii) the weighted average interest rate of the Mortgage Loan and the Mezzanine Loan shall on the date created equal the interest rate which was applicable to the Loan immediately prior to creation of a Mortgage Loan and a
Mezzanine Loan and (iii) prior to the occurrence of an Event of Default, the debt service payments on the Mortgage Loan note and the Mezzanine Loan note shall equal the debt service payment which are due under the Loan as if no Mezzanine Loan had
been created. 
  
 (b) Mezzanine Borrower shall be a special
purpose, bankruptcy remote entity pursuant to applicable Rating Agency criteria and shall own directly or indirectly one hundred percent (100%) of Mortgage Borrower. The security for the Mezzanine Loan shall be a pledge of one hundred percent (100%)
of the direct and indirect ownership interests in Mortgage Borrower. 
  
 (c) Mezzanine Borrower and Mortgage Borrower shall cooperate with all reasonable requests of Lender in order to convert the Loan into a Mortgage Loan and a Mezzanine Loan and shall execute and deliver such documents as shall reasonably be
required by Lender and any 

  

 99 

 
Rating Agency in connection therewith, including, without limitation, the delivery of non-consolidation opinions and the modification of organizational
documents and loan documents. In the event Mortgage Borrower and/or Mezzanine Borrower fail to execute and deliver such documents to Lender within five (5) Business Days following such request by Lender, Mortgage Borrower and/or Mezzanine Borrower,
as applicable, hereby absolutely and irrevocably appoint Lender as their true and lawful attorney, coupled with an interest, in their name and stead to make and execute all documents necessary or desirable to effect such transactions, Mortgage
Borrower and/or Mezzanine Borrower, as applicable, ratifying all that such attorney shall do by virtue thereof. Lender shall pay all costs and expenses in connection with the creation of the Mortgage Loan and the Mezzanine Loan and all requirements
relating thereto, including, without limitation, the cost of any UCC lien insurance policy. 
  
 (d) It shall be an Event of Default under this Agreement, the Note, the Mortgage and the other Loan Documents if Borrower or Mezzanine Borrower fails to comply with any of the terms, covenants or conditions of this
Section 9.8 after expiration of ten (10) Business Days after notice thereof. 
  
 ARTICLE 10 
  
 MISCELLANEOUS 
  
 Section 10.1 Survival.
This Agreement and all covenants, agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the making by Lender of the Loan and the execution and delivery to Lender of the Note, and shall
continue in full force and effect so long as all or any of the Obligations are outstanding and unpaid unless a longer period is expressly set forth herein or in the other Loan Documents. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the legal representatives, successors and assigns of such party. All covenants, promises and agreements in this Agreement, by or on behalf of Borrower, shall inure to the benefit of the legal
representatives, successors and assigns of Lender. 
  
 Section
10.2 Lender’s Discretion. Whenever pursuant to this Agreement, Lender exercises any right given to it to approve or disapprove, or any arrangement or term is to be satisfactory to Lender, the decision of Lender to approve or disapprove
or to decide whether arrangements or terms are satisfactory or not satisfactory shall (except as is otherwise specifically herein provided) be in the sole discretion of Lender and shall be final and conclusive. Whenever this Agreement expressly
provides that Lender may not withhold its consent or its approval of an arrangement or term, such provisions shall also be deemed to prohibit Lender from delaying or conditioning such consent or approval. 
  
 Section 10.3 Governing Law 
  
 (a) THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW
YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW 

  

 100 

 
YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS,
INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL
TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE
PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS
ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT, THE NOTE AND/OR THE OTHER LOAN
DOCUMENTS, AND THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 
  
 (b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER
OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS MAY AT LENDER’S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW AND BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH
COURT IN ANY SUIT, ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT: 
  
 CT CORPORATION SYSTEM 
 111 EIGHTH AVENUE 
 NEW YORK, NEW YORK 10011 
  
 AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY
FEDERAL OR STATE COURT IN NEW 

  

 101 

 
YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE
MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS
AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF
PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR. 
  
 (c) BORROWER DOES HEREBY DESIGNATE AND APPOINT: 
  
 CT CORPORATION SYSTEM 
 818 WEST SEVENTH STREET 
 LOS ANGELES,
CALIFORNIA 90017 
  
 AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON
ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN CALIFORNIA, AND BORROWER AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID
SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF CALIFORNIA. 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 WITH AN OFFICE IN CALIFORNIA (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE
PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN CALIFORNIA OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR. 
  
 Section 10.4 Modification, Waiver in Writing. No modification,
amendment, extension, discharge, termination or waiver of any provision of this Agreement, or of the Note, or of any other Loan Document, nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in
a writing signed by the party against whom enforcement is sought, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or
demand on Borrower, shall entitle Borrower to any other or future notice or demand in the same, similar or other circumstances. 
  

 102 

 Section 10.5 Delay Not a Waiver. Neither any failure nor any delay on the part of Lender in
insisting upon strict performance of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under the Note or under any other Loan Document, or under any other instrument given as security
therefor, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by way of
limitation, by accepting payment after the due date of any amount payable under this Agreement, the Note or any other Loan Document, Lender shall not be deemed to have waived any right either to require prompt payment when due of all other amounts
due under this Agreement, the Note or the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount. 
  
 Section 10.6 Notices. All notices, consents, approvals and requests required or permitted hereunder or under any other Loan Document (each, a
“Notice”), shall be given in writing and shall be effective for all purposes if hand delivered or sent by (a) certified or registered United States mail, postage prepaid, return receipt requested or (b) expedited prepaid delivery
service, either commercial or United States Postal Service, with proof of attempted delivery, and by telecopier (with answer back acknowledged), addressed as follows (or at such other address and Person as shall be designated from time to time by
any party hereto, as the case may be, in a Notice to the other parties hereto in the manner provided for in this Section 10.6): 
  

			
	If to Lender:	  	Column Financial, Inc.
	 	  	11 Madison Avenue
	 	  	New York, New York 10010
	 	  	Attention: Robert Russell
	 	  	Facsimile No. (212) 734-5230
		
	 with a copy to:
	  	Column Financial, Inc.
	 	  	11 Madison Avenue
	 	  	New York, New York 10010
	 	  	Legal and Compliance Department
	 	  	Attention: Tessa Peters
	 	  	Facsimile No. (917) 326-7805
		
	 with a copy to:
	  	Greenberg Traurig, LLP
	 	  	200 Park Avenue
	 	  	New York, New York 10166
	 	  	Attention: Alan Pleskow, Esq.
	 	  	Facsimile No. (212) 801-9200
		
	 If to Borrower:
	  	c/o Wyndham International, Inc.
	 	  	1950 Stemmons Freeway, Suite 6001
	 	  	Dallas, Texas 75207
	 	  	Attention: Philip Gosch, Esq.
	 	  	Facsimile No. (214) 863-1669

  

 103 

			
	With a copy to:	  	Sidley Austin Brown & Wood LLP
	 	  	787 Seventh Avenue
	 	  	New York, New York 10019
	 	  	Attention: Alan Weil, Esq.
	 	  	Facsimile No. (212) 839-5599

  
 A Notice shall be deemed to have been
given: in the case of hand delivery or delivery by a reputable overnight courier, at the time of delivery; in the case of registered or certified mail, when delivered or the first attempted delivery on a Business Day; in the case of expedited
prepaid delivery and telecopy, upon the first attempted delivery on a Business Day; or in the case of telecopy, upon sender’s receipt of a machine-generated confirmation of successful transmission after advice by telephone to recipient that a
telecopy Notice is forthcoming. 
  
 Section 10.7 Trial by
Jury. BORROWER AND LENDER EACH HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN
DOCUMENTS OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER AND LENDER AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH
ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH OF BORROWER AND LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER. 
  
 Section 10.8 Headings. The Article and/or Section headings and the
Table of Contents in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
  
 Section 10.9 Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating
the remainder of such provision or the remaining provisions of this Agreement. 
  
 Section 10.10 Preferences. Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the Obligations of Borrower hereunder. To the
extent Borrower makes a payment or payments to Lender, which payment or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other
party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds received, the Obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full
force and effect, as if such payment or proceeds had not been received by Lender. 
  
 Section 10.11 Waiver of Notice. Borrower hereby expressly waives, and shall not be entitled to, any notices of any nature whatsoever from Lender except with respect to matters for 

  

 104 

 
which this Agreement or the other Loan Documents specifically and expressly provide for the giving of notice by Lender to Borrower and except with respect to
matters for which Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. 
  
 Section 10.12 Remedies of Borrower. In the event that a claim or adjudication is made that Lender or its agents have acted unreasonably or
unreasonably delayed acting in any case where by law or under this Agreement or the other Loan Documents, Lender or such agent, as the case may be, has an obligation to act reasonably or promptly, Borrower agrees that neither Lender nor its agents
shall be liable for any monetary damages, and Borrower’s sole remedies shall be limited to commencing an action seeking injunctive relief or declaratory judgment. The parties hereto agree that any action or proceeding to determine whether
Lender has acted reasonably shall be determined by an action seeking declaratory judgment. 
  
 Section 10.13 Expenses; Indemnity. 
  
 (a) Borrower covenants and agrees to pay or, if Borrower fails to pay, to reimburse, Lender within five (5) days after receipt of notice from Lender for all reasonable third-party, out-of-pocket costs and expenses
(including reasonable attorneys’ fees and disbursements) incurred by Lender in connection with (i) the preparation, negotiation, execution and delivery of this Agreement and the other Loan Documents and the consummation of the transactions
contemplated hereby and thereby and all the costs of furnishing all opinions by counsel for Borrower (including without limitation any opinions requested by Lender as to any legal matters arising under this Agreement or the other Loan Documents with
respect to the Property); (ii) Borrower’s ongoing performance of and compliance with Borrower’s respective agreements and covenants contained in this Agreement and the other Loan Documents on its part to be performed or complied with after
the Closing Date, including, without limitation, confirming compliance with environmental and insurance requirements; (iii) Lender’s ongoing performance and compliance with all agreements and conditions contained in this Agreement and the other
Loan Documents on its part to be performed or complied with after the Closing Date; (iv) the negotiation, preparation, execution, delivery and administration of any consents, amendments, waivers or other modifications to this Agreement and the other
Loan Documents and any other documents or matters requested by Lender; (v) securing Borrower’s compliance with any requests made pursuant to the provisions of this Agreement; (vi) the filing and recording fees and expenses, title insurance and
reasonable fees and expenses of counsel for providing to Lender all required legal opinions, and other similar expenses incurred in creating and perfecting the Liens in favor of Lender pursuant to this Agreement and the other Loan Documents; (vii)
enforcing or preserving any rights, either in response to third party claims or in prosecuting or defending any action or proceeding or other litigation, in each case against, under or affecting Borrower, this Agreement, the other Loan Documents,
the Property, or any other security given for the Loan; and (viii) enforcing any obligations of or collecting any payments due from Borrower under this Agreement, the other Loan Documents, or with respect to the Property or in connection with any
refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out” or of any insolvency or bankruptcy proceedings; provided, however, that Borrower shall not be liable for the payment
of any such costs and expenses to the extent the same arise by reason of the gross negligence, illegal acts, fraud or willful misconduct of Lender. Any cost and expenses due and payable to Lender may be paid, at Lender’s option, from any
amounts in the Property Account. 
  

 105 

 (b) Borrower shall indemnify, defend and hold harmless Lender from and against any and
all other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including, without limitation, the reasonable fees and disbursements of counsel
for Lender in connection with any investigative, administrative or judicial proceeding commenced or threatened, whether or not Lender shall be designated a party thereto), that may be imposed on, incurred by, or asserted against Lender in any manner
relating to or arising out of (i) any breach by Borrower of its obligations under, or any material misrepresentation by Borrower contained in, this Agreement or the other Loan Documents, or (ii) the use or intended use of the proceeds of the Loan
(collectively, the “Indemnified Liabilities”); provided, however, that Borrower shall not have any obligation to Lender hereunder to the extent that such Indemnified Liabilities arise from the gross negligence, illegal acts,
fraud or willful misconduct of Lender. To the extent that the undertaking to indemnify, defend and hold harmless set forth in the preceding sentence may be unenforceable because it violates any law or public policy, Borrower shall pay the maximum
portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Lender. 
  
 (c) Borrower covenants and agrees to pay for or, if Borrower fails to pay, to reimburse Lender for, any fees and expenses incurred by any
Rating Agency in connection with any Rating Agency review of the Loan, the Loan Documents or any transaction contemplated thereby up to a maximum sum of $20,000.00 or any consent, approval, waiver or confirmation obtained from such Rating Agency
pursuant to the terms and conditions of this Agreement or any other Loan Document and Lender shall be entitled to require payment of such fees and expenses as a condition precedent to the obtaining of any such consent, approval, waiver or
confirmation. 
  
 Section 10.14 Schedules Incorporated. The
Schedules annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof. 
  
 Section 10.15 Offsets, Counterclaims and Defenses. Any assignee of Lender’s interest in and to this Agreement, the Note and the other Loan
Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such documents which Borrower may otherwise have against any assignor of such documents, and no such unrelated counterclaim or defense
shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon such documents and any such right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is
hereby expressly waived by Borrower. 
  
 Section 10.16 No Joint
Venture or Partnership; No Third Party Beneficiaries. 
  
 (a) Borrower and Lender intend that the relationships created hereunder and under the other Loan Documents be solely that of borrower and lender. Nothing herein or therein is intended to create a joint venture,
partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Property other than that of mortgagee, beneficiary or lender. 
  

 106 

 (b) This Agreement and the other Loan Documents are solely for the benefit of Lender and
Borrower and nothing contained in this Agreement or the other Loan Documents shall be deemed to confer upon anyone other than Lender and Borrower any right to insist upon or to enforce the performance or observance of any of the obligations
contained herein or therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit of Lender and no other Person shall have standing to require satisfaction of such conditions in
accordance with their terms or be entitled to assume that Lender will refuse to make the Loan (or any disbursement of Reserve Funds) in the absence of strict compliance with any or all thereof and no other Person shall under any circumstances be
deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or desirable to do so. 
  
 Section 10.17 Publicity. Except as may be otherwise required by the
requirements of the New York Stock Exchange and/or any other securities laws, all news releases, publicity or advertising by 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 Lender, CSFB, or any of their Affiliates shall be subject to the prior approval of Lender. 
  
 Section 10.18 Waiver of Marshalling of Assets. To the fullest extent permitted by law, Borrower, for itself and its successors and assigns, waives
all rights to a marshalling of the assets of Borrower, Borrower’s partners and others with interests in Borrower, and of the Property, or to a sale in inverse order of alienation in the event of foreclosure of the Mortgage, and agrees not to
assert any right under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right
of Lender under the Loan Documents to a sale of the Property for the collection of the Debt and/or the Other Borrower Obligations without any prior or different resort for collection or of the right of Lender to the payment of the Debt and/or the
Other Borrower Obligations out of the net proceeds of the Property in preference to every other claimant whatsoever. 
  
 Section 10.19 Waiver of Offsets/Defenses/Counterclaims. Borrower hereby waives the right to assert a counterclaim, other than a compulsory
counterclaim, in any action or proceeding brought against it by Lender or its agents or otherwise to offset any Obligations under 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. 
  
 Section 10.20 Conflict; Construction of Documents; Reliance. In the event of any conflict between the provisions of this Agreement, any of the
other Loan Documents, the provisions of this Agreement shall control. The parties hereto acknowledge that they were represented by competent counsel in connection with the negotiation, drafting and execution of the Loan Documents and that such Loan
Documents shall not be subject to the principle of construing their meaning against the party which drafted same. Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering into the
Loan without relying in any manner on any statements, representations or recommendations of Lender or any parent, subsidiary or Affiliate of Lender. Lender shall not be 

  

 107 

 
subject to any limitation whatsoever in the exercise of any rights or remedies available to it under any of the Loan Documents or any other agreements or
instruments which govern the Loan or the Other Loans by virtue of the ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest any of them may acquire in Borrower, and Borrower hereby irrevocably waives the right to
raise any defense or take any action on the basis of the foregoing with respect to Lender’s exercise of any such rights or remedies. Borrower acknowledges that Lender engages in the business of real estate financings and other real estate
transactions and investments which may be viewed as adverse to or competitive with the business of Borrower or its Affiliates. 
  
 Section 10.21 Brokers and Financial Advisors. Borrower hereby represents that it has dealt with no financial advisors, brokers, underwriters,
placement agents, agents or finders in connection with the transactions contemplated by this Agreement. Borrower hereby agrees to indemnify, defend and hold Lender harmless from and against any and all claims, liabilities, costs and expenses of any
kind (including Lender’s attorneys’ fees and expenses) in any way relating to or arising from a claim by any Person that such Person acted on behalf of Borrower or Lender in connection with the transactions contemplated herein. The
provisions of this Section 10.21 shall survive the expiration and termination of this Agreement and the payment of the Debt. 
  
 Section 10.22 Prior Agreements. This Agreement and the other Loan Documents contain the entire agreement of the parties hereto and thereto in
respect of the transactions contemplated hereby and thereby, and all prior agreements among or between such parties, whether oral or written, between Borrower and Lender are superseded by the terms of this Agreement and the other Loan Documents.

  

 108 

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

					
	 WYNDHAM COMMERCE OWNER, LLC,
 a
Delaware limited liability company

		
	By:	 	Wyndham Commerce Manager, Inc.,
its Managing Member
			
	 	 	By:	 	 /s/ MICHAEL HIGA

	 	 	 	 	 Name: Michael Higa
 Title: Vice President

	
	COLUMN FINANCIAL, INC.
			
	 	 	By:	 	 /s/ JEFFREY A. ALTABEF

	 	 	 	 	 Name: Jeffrey A. Altabef
 Title: Vice President

  

 109 

 SCHEDULE I 
  
 LEASES 
  
 (INCLUDES TENANT LEASES ONLY) 
  
 Wyndham – Commerce (Los Angeles): 
  

									
	 Lessor

	 	 Lessee

	 	 Lease Type

	 	 Rate Amount

	 	 Payment Frequency

	 Wyndham – Commerce
	 	Innovus	 	ATM Machine	 	Commission	 	Monthly
	 	 	Best Vending	 	Vending Machines	 	Commission	 	Monthly

  

 SCHEDULE II 
  
 Intentionally Omitted 
  

 SCHEDULE III 
  
 (Organizational Structure) 
  
 ––See Attached–– 
  

 SCHEDULE IV 
  
 (Ground Lease) 
  
 That certain Amended and Restated Lease Agreement dated as of July 24, 2003 between Craig Realty Group Citadel, LLC, a California limited liability
company (“Owner”) and Patriot American Hospitality Partnership, L.P., a Virginia limited partnership, predecessor in interest to Borrower, a memorandum of which is recorded as of July 29, 2003 as Instrument No.
03-2161331 in the Official Records of Los Angeles County, California. 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE 1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	  	1
	 Section 1.1
	  	 Definitions
	  	1
	 Section 1.2
	  	 Principles of Construction
	  	25
		
	 ARTICLE 2 GENERAL TERMS
	  	25
	 Section 2.1
	  	 Loan Commitment; Disbursement to Borrower
	  	25
	 Section 2.2
	  	 Interest Rate
	  	25
	 Section 2.3
	  	 Loan Payment
	  	31
	 Section 2.4
	  	 Prepayments
	  	31
	 Section 2.5
	  	 Release of Property
	  	33
	 Section 2.6
	  	 Cash Management
	  	34
	 Section 2.7
	  	 Extension Options
	  	37
	 Section 2.8
	  	 Substitution
	  	38
		
	 ARTICLE 3 CONDITIONS PRECEDENT
	  	40
	 Section 3.1
	  	 Conditions Precedent to Closing
	  	40
		
	 ARTICLE 4 REPRESENTATIONS AND WARRANTIES
	  	44
	 Section 4.1
	  	 Borrower Representations
	  	44
	 Section 4.2
	  	 Survival of Representations
	  	52
		
	 ARTICLE 5 BORROWER COVENANTS
	  	52
	 Section 5.1
	  	 Affirmative Covenants
	  	52
	 Section 5.2
	  	 Negative Covenants
	  	61
		
	 ARTICLE 6 INSURANCE; CASUALTY; CONDEMNATION;
	  	69
	 Section 6.1
	  	 Insurance
	  	69
	 Section 6.2
	  	 Casualty
	  	74
	 Section 6.3
	  	 Condemnation
	  	74
	 Section 6.4
	  	 Restoration
	  	74
		
	 ARTICLE 7 RESERVE FUNDS
	  	80
	 Section 7.1
	  	 Intentionally Omitted
	  	80
	 Section 7.2
	  	 Tax and Insurance Escrow Funds
	  	81
	 Section 7.3
	  	 FF&E Reserve
	  	82
	 Section 7.4
	  	 Ground Rent Reserve Funds
	  	83
	 Section 7.5
	  	 Debt Service Reserve
	  	83
	 Section 7.6
	  	 Reserve Funds, Generally
	  	84
		
	 ARTICLE 8 DEFAULTS
	  	85
	 Section 8.1
	  	 Event of Default
	  	85
	 Section 8.2
	  	 Remedies
	  	88

  

 i 

					
	 ARTICLE 9 SPECIAL PROVISIONS
	  	89
	 Section 9.1
	  	 Sale of Note and Securitization
	  	89
	 Section 9.2
	  	 Securitization Indemnification
	  	91
	 Section 9.3
	  	 [RESERVED]
	  	94
	 Section 9.4
	  	 Exculpation
	  	94
	 Section 9.5
	  	 Matters Concerning Manager
	  	96
	 Section 9.6
	  	 Servicer
	  	96
	 Section 9.7
	  	 Severance of Loan Documents
	  	96
		
	 ARTICLE 10 MISCELLANEOUS
	  	98
	 Section 10.1
	  	 Survival
	  	98
	 Section 10.2
	  	 Lender’s Discretion
	  	98
	 Section 10.3
	  	 Governing Law
	  	99
	 Section 10.4
	  	 Modification, Waiver in Writing
	  	101
	 Section 10.5
	  	 Delay Not a Waiver
	  	101
	 Section 10.6
	  	 Notices
	  	101
	 Section 10.7
	  	 Trial by Jury
	  	102
	 Section 10.8
	  	 Headings
	  	102
	 Section 10.9
	  	 Severability
	  	102
	 Section 10.10
	  	 Preferences
	  	103
	 Section 10.11
	  	 Waiver of Notice
	  	103
	 Section 10.12
	  	 Remedies of Borrower
	  	103
	 Section 10.13
	  	 Expenses; Indemnity
	  	103
	 Section 10.14
	  	 Schedules Incorporated
	  	104
	 Section 10.15
	  	 Offsets, Counterclaims and Defenses
	  	104
	 Section 10.16
	  	 No Joint Venture or Partnership; No Third Party Beneficiaries
	  	105
	 Section 10.17
	  	 Publicity
	  	105
	 Section 10.18
	  	 Waiver of Marshalling of Assets
	  	105
	 Section 10.19
	  	 Waiver of Offsets/Defenses/Counterclaims
	  	105
	 Section 10.20
	  	 Conflict; Construction of Documents; Reliance
	  	106
	 Section 10.21
	  	 Brokers and Financial Advisors
	  	106
	 Section 10.22
	  	 Prior Agreements
	  	106

  
 SCHEDULES

  

					
	 Schedule I
	  	–	  	 Leases

	 Schedule II
	  	–	  	 Intentionally Omitted

	 Schedule III
	  	–	  	 Organizational Structure

	 Schedule IV
	  	–	  	 Ground Lease

  

 ii 

 [Ft. Lauderdale, Florida] 
  
 LOAN AGREEMENT 
  
 Dated as of June 21, 2004 
  
 between 
  
 FT. LAUDERDALE OWNER, LLC, 
  
 as Borrower 
  
 and

  
 COLUMN FINANCIAL, INC., 
  
 as Lender 
  
 ADJUSTABLE RATE PROPERTY LOAN 
  

 LOAN AGREEMENT 
  
 THIS LOAN AGREEMENT, dated as of June 21, 2004 (as amended, restated, replaced, supplemented or otherwise modified from time
to time, this “Agreement”), between COLUMN FINANCIAL, INC., having an address at 11 Madison Avenue, New York, New York 10010 (“Lender”) and FT. LAUDERDALE OWNER, LLC, having its principal place of business c/o
Wyndham International, Inc., 1950 Stemmons Freeway, Suite 6001, Dallas, Texas 75207 (“Borrower”). 
  
 W I T N E S S E T H : 
  
 WHEREAS, Borrower desires to obtain the Loan (as hereinafter defined) from Lender; and 
  
 WHEREAS, Lender is willing to make the Loan to Borrower, subject to and in accordance with the terms and conditions of this Agreement and the other Loan
Documents (as hereinafter defined). 
  
 NOW THEREFORE, in
consideration of the making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto hereby covenant, agree, represent and warrant as follows: 
  
 ARTICLE 1 
  
 DEFINITIONS; PRINCIPLES OF CONSTRUCTION 
  
 Section 1.1 Definitions. For all purposes of this Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent: 
  
 “Acceptable Counterparty” shall mean any counterparty to the Interest Rate Cap Agreement that (a) has and
shall maintain, until the expiration of the applicable Interest Rate Cap Agreement, a long-term unsecured debt rating of at least “A+” by S&P and “A1” from Moody’s, which rating shall not include a “t” or
otherwise reflect a termination risk or (b) is otherwise acceptable to the Rating Agencies. Lender hereby acknowledges and agrees that, as of the date hereof, JP Morgan Chase is an Acceptable Counterparty. 
  
 “Acquired Property” shall have the meaning set forth in
Section 5.1.11(d)(i) hereof. 
  
 “Acquired Property
Statements” shall have the meaning set forth in Section 5.1.11(d)(i) hereof. 
  
 “Additional Due Diligence Materials” shall mean, in respect of a Substitute Property, appraisals, engineering reports, environmental reports, survey, title insurance policies, insurance
policies, financial statements (relating to the Substitute Property, Borrower, the Significant Parties and such other Persons as Lender shall reasonably require), financial and market projections, marketing reports, opinions of counsel, resolutions,
consents and other due diligence materials customarily required by Lender or any Rating Agency (in their respective sole 

  

 
discretion) in respect of loan transactions similar to the transactions contemplated hereby and relating to properties similar to the Substitute Property.

  
 “Additional Insolvency Opinion”
shall have the meaning set forth in Section 4.1.30(c) hereof. 
  
 “Adjusted Release Amount” shall mean, the amount which is equal to 120% of the Outstanding Principal Balance as of the date of such release. 
  
 “Affiliate” shall mean, as to any Person, any other Person that, directly or indirectly, is
in control of, is controlled by or is under common control with such Person or is a director or officer of such Person or of an Affiliate of such Person. 
  
 “Affiliated Loans” shall mean a loan (including, without limitation, the Other Loans) made by Lender to an Affiliate of Borrower or
Guarantor. 
  
 “Affiliated Manager” shall mean
any Manager in which Borrower, Principal or Guarantor has, directly or indirectly, any legal, beneficial or economic interest. 
  
 “Aggregate Debt Service” shall mean with respect to any particular period of time, scheduled principal and/or interest payments due on
the Other Loans and the Loan then outstanding. 
  
 “Aggregate Debt Service Coverage Ratio” shall mean, with respect to the Other Properties then remaining subject to the Liens of the Other Mortgages and the Property, in respect of the relevant period, the ratio of: (i) the
Aggregate Net Operating Income (excluding interest on credit accounts) of such Other Properties and the Property for the relevant period to (ii) the applicable Aggregate Debt Service as determined in accordance with the definition of Aggregate Debt
Service set forth herein. 
  
 “Aggregate Gross
Income” shall mean, for any period, the sum of “Gross Income from Operations” (as defined in, and as computed in accordance with, the applicable Other Borrower Loan Documents) of each of the Other Properties then remaining subject
to the Liens of the Other Mortgages and Gross Income from Operations of the Property. 
  
 “Aggregate Net Cash Flow” shall mean, for any period, the sum of (a) Net Cash Flow and (b) Net Cash Flow (as defined in, and computed in accordance with, the applicable Other Borrower Loan Documents)
of each of the Other Properties then remaining subject to the Liens of the Other Mortgages. 
  
 “Aggregate Net Operating Income” shall mean, for any period, the excess of (x) the Aggregate Gross Income over (y) the Aggregate Operating Expenses. 
  
 “Aggregate Operating Expenses” shall mean, in respect of the
relevant period, the sum of Operating Expenses of the Property and “Operating Expenses” (as defined in, and as computed in accordance with, the applicable Other Borrower Loan Documents) of each of the Other Properties then remaining
subject to the Liens of the Other Mortgages. 
  

 2 

 “ALTA” shall mean American Land Title Association, or any successor thereto. 

 
 “Annual Budget” shall mean the operating budget,
including all planned Capital Expenditures, for the Property prepared by Borrower for the applicable calendar year or other period. 
  
 “Annual FF&E Budget” shall mean that portion of the Annual Budget providing for FF&E expenditures. 
  
 “Applicable Interest Rate” shall mean the rate or rates at
which the Outstanding Principal Balance bears interest from time to time in accordance with the provisions of Section 2.2.3 hereof. 
  
 “Approved Annual Budget” shall have the meaning set forth in Section 5.1.11(j) hereof. 
  
 “Approved Annual FF&E Budget” shall have the meaning set
forth in Section 5.1.11(j) hereof. 
  
 “Assignment
of Leases” shall mean that certain first priority Assignment of Leases and Rents, dated as of the date hereof, from Borrower, as assignor, to Lender, as assignee, assigning to Lender all of Borrower’s interest in and to the Leases and
Rents of the Property as security for the Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Assignment of Management Agreement” shall mean that certain Assignment of Management Agreement and Subordination of Management Fees,
dated as of the date hereof, among Lender, Borrower and Manager, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Award” shall mean any compensation paid by any Governmental Authority in connection with a Condemnation.

  
 “Bankruptcy Action” shall mean with respect
to any Person: (a) such Person filing a voluntary petition under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (b) the filing of an involuntary petition against such Person under the Bankruptcy Code or any other
Federal or state bankruptcy or insolvency law, or soliciting such Person or causing to be solicited petitioning creditors for any involuntary petition against such Person; (c) such Person filing an answer consenting to or otherwise acquiescing in or
joining in any involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited petitioning creditors for any involuntary
petition from any Person; (d) such Person consenting to or acquiescing in or joining in an application for the appointment of a custodian, receiver, trustee, or examiner for such Person or any portion of the Property; or (e) such Person making an
assignment for the benefit of creditors, or admitting, in writing or in any legal proceeding, its insolvency or inability to pay its debts as they become due. 
  

“Basic Carrying Costs” shall mean, for any period, the sum of the following costs: (a) Taxes, (b) Other Charges, and (c) Insurance
Premiums. 
  

 3 

 “Borrower” shall have the meaning set forth in the introductory paragraph hereto,
together with its successors and permitted assigns. 
  
 “Borrower Guaranty” shall mean that certain Borrower Guaranty Agreement, dated as of the date hereof, from Borrower in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time. 
  
 “Breakage Costs” shall have the
meaning set forth in Section 2.2.3(h) hereof. 
  
 “Business Day” shall mean any day other than a Saturday, Sunday or any other day on which national banks in New York, New York are not open for business. 
  
 “Capital Expenditures” shall mean, for any period, the amount expended for items capitalized under GAAP
(including expenditures for building improvements or major repairs, leasing commissions and tenant improvements). 
  
 “Cash Management Account” shall have the meaning set forth in Section 2.6.3(a) hereof. 
  
 “Cash Management Agreement” shall mean that certain Cash
Management Agreement, dated as of the date hereof, by and among Borrower and Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Casualty” shall have the meaning set forth in Section 6.2 hereof. 
  
 “Casualty Consultant” shall have the meaning set forth in
Section 6.4(b)(iii) hereof. 
  
 “Casualty
Retainage” shall have the meaning set forth in Section 6.4(b)(iv) hereof. 
  
 “Closing Date” shall mean the date of the funding of the Loan. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended, as it may be further amended from time to time, and any successor
statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 
  
 “Collateral Assignment of Interest Rate Cap Agreement” shall mean a Collateral Assignment of Interest Rate Cap Agreement, in
substantially the same form and content attached hereto as Exhibit A, executed by Borrower in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

  
 “Condemnation” shall mean a temporary or
permanent taking by any Governmental Authority as the result or in lieu or in anticipation of the exercise of the right of condemnation or eminent domain, of all or any part of the Property, or any interest therein or right accruing thereto,
including any right of access thereto or any change of grade affecting the Property or any part thereof. 
  
 “Condemnation Proceeds” shall have the meaning set forth in Section 6.4(b) hereof. 
  

 4 

 “Counterparty” shall mean, with respect to the Interest Rate Cap Agreement and any
Replacement Interest Rate Cap Agreement, any Acceptable Counterparty. 
  
 “Covered Disclosure Information” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “CSFB” shall mean Credit Suisse First Boston Corporation and its successors in interest. 
  
 “Debt” shall mean the Outstanding Principal Balance,
together with all interest accrued and unpaid thereon and all other sums (including any Prepayment Premium) due to Lender in respect of the Loan under the Note, this Agreement, the Mortgage and the other Loan Documents. 
  
 “Debt Service” shall mean, with respect to any particular
period of time, scheduled principal and/or interest payments due under this Agreement and the Note. 
  
 “Debt Service Coverage Ratio” shall mean a ratio for the applicable period in which: 
  
 (a) the numerator is the Net Operating Income (excluding
interest on credit accounts) for the twelve (12) month period immediately preceding the date of determination for which financial statements are available; and 
  

(b) the denominator is the amount of interest paid on the Note for the trailing twelve (12) month period immediately preceding the date
of determination for which financial statements are available calculated at the interest rate computed in accordance with the provisions of this Agreement at a deemed annual rate of 11.33%. 
  
 “Debt Service Reserve” shall mean have the meaning set forth
in Section 7.5. 
  
 “Debt Service Reserve
Account” shall mean have the meaning set forth in Section 7.5. 
  
 “Debt Service Reserve Funds” shall mean have the meaning set forth in Section 7.5. 
  
 “Decorative Changes” shall mean any alterations or change to the Improvements that are made primarily for decorative or cosmetic purposes
(e.g. painting, wallpapering, carpeting, FF&E etc.) that: (a) will not have a Material Adverse Effect, and (b) do not affect or involve (other than in a decorative or cosmetic manner) any structural component of any Improvements, any utility or
HVAC system contained in any Improvements or the exterior of any building constituting a part of any Improvements. 
  
 “Default” shall mean the occurrence of any event hereunder or under any other Loan Document which, but for the giving of notice or
passage of time, or both, would be an Event of Default. 
  
 “Default Rate” shall mean a rate per annum equal to the lesser of (a) the Maximum Legal Rate, and (b) four percent (4%) above the Applicable Interest Rate. 
  

 5 

 “Determination Date” shall mean, with respect to any Interest Period, the date that is
two (2) London Business Days prior to the fifteenth (15th) day of the calendar month in which such Interest Period commences. 
  
 “Disclosure Document” shall mean a prospectus, prospectus supplement, private placement memorandum, offering memorandum, offering
circular, term sheet, road show presentation materials or other offering documents or marketing materials, in each case in preliminary or final form, used to offer Securities in connection with a Securitization. 
  
 “Eligibility Requirements” means, with respect to any
Person, that such Person (i) has total assets (in name or under management) in excess of $50,000,000 and (ii) is regularly engaged in the business of making investments in or operating hotels. 
  
 “Eligible Account” shall mean a separate and identifiable
account from all other funds held by the holding institution that is either (a) an account or accounts maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution or
(b) a segregated trust account or accounts maintained with a federal or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository institution or trust company, is
subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal and state authority. An Eligible Account will
not be evidenced by a certificate of deposit, passbook or other instrument. 
  
 “Eligible Institution” shall mean a depository institution or trust company, the short term unsecured debt obligations or commercial paper of which are rated at least “A-1+” by S&P,
“P-1” by Moody’s and “F-1+” by Fitch in the case of accounts in which funds are held for thirty (30) days or less (or, in the case of accounts in which funds are held for more than thirty (30) days, the long term unsecured
debt obligations of which are rated at least “AA” by Fitch and S&P and “Aa2” by Moody’s). Lender hereby acknowledges and agrees that, as of the date hereof, each of Wachovia, JP Morgan Chase and Wells Fargo is deemed to
be an Eligible Institution. 
  
 “Embargoed
Person” shall have the meaning set forth in Section 4.1.35 hereof. 
  
 “Engineering Report” shall mean (i) that certain report dated December 1, 2003, prepared by Arnold & Associates, Inc. with respect to the Property and (ii) that certain report dated March 13,
2004, prepared by Professional Service Industries, Inc. with respect to the Property. 
  
 “Environmental Indemnity” shall mean that certain Environmental Indemnity Agreement, dated as of the date hereof, executed by Borrower and Guarantor in connection with the Loan for the benefit of
Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Equipment” shall have the meaning set forth in the granting clause of the Mortgage. 
  

 6 

 “Equity Pledge Agreement” shall mean that certain Equity Pledge and Security Agreement,
dated as of the date hereof, executed by Interstone/PAH Partners, L.P., a Delaware limited partnership, and Ft. Lauderdale Manager, Inc., a Delaware corporation, in connection with, and securing, the Loan and the Other Loans for the benefit of
Lender, as the same may have been, or may hereafter be, amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
  
 “Event of Default” shall have the meaning set forth in
Section 8.1(a) hereof. 
  
 “Excess Cash
Flow” shall have the meaning set forth in Section 2.6.3(b) hereof. 
  
 “Exchange Act” shall have the meaning set forth in Section 9.2(a) hereof. 
  
 “Exchange Act Filing” shall have the meaning set forth in Section 5.1.11(g) hereof. 
  
 “Extension Notice” shall have the meaning set forth in
Section 2.7.1 hereof. 
  
 “Extraordinary
Expense” shall have the meaning set forth in Section 5.1.11(k) hereof. 
  
 “FF&E” shall mean furniture, fixtures and equipment and other replacements and repairs required to be made to the Property during the applicable calendar year. 
  
 “FF&E Reserve Account” shall have the meaning set forth
in Section 7.3.1 hereof. 
  
 “FF&E Reserve
Deposit” shall have the meaning set forth in Section 7.3.1 hereof. 
  
 “FF&E Reserve Funds” shall have the meaning set forth in Section 7.3.1 hereof. 
  
 “Financing Leases” shall have the meaning set forth in Section 5.2.10(f). 
  
 “First Extension Commencement Date” shall have the meaning
set forth in Section 2.7.1 hereof. 
  
 “First
Extension Term” shall have the meaning set forth in Section 2.7.1 hereof. 
  
 “Fiscal Year” shall mean each twelve (12) month period commencing on January 1 and ending on December 31 during each year of the term of
the Loan. 
  
 “Fitch” shall mean Fitch IBCA, Inc.

  
 “Foreign Taxes” shall have the meaning set
forth in Section 2.2.3(e) hereof. 
  
 “Franchise
Agreement” shall have the meaning set forth in Section 5.2.12(a) hereof. 
  
 “Franchisor” shall have the meaning set forth in Section 5.2.12 hereof. 
  

 7 

 “GAAP” shall mean generally accepted accounting principles in the United States of
America as of the date of the applicable financial report. 
  
 “Governmental Authority” shall mean any court, board, agency, commission, office or other authority of any nature whatsoever for any governmental unit (federal, state, county, district, municipal, city or otherwise) whether
now or hereafter in existence having jurisdiction over Borrower, Lender and/or the Property. 
  
 “Gross Income from Operations” shall mean, for any period, all Rents; provided, however, that Gross Income from Operations shall not include: (a) non-recurring income and non-Property
related income (as determined by Lender in its reasonable discretion), (b) security deposits received from any tenant unless and until the same are applied to rent or any other of such tenant’s obligations in accordance with the terms of such
tenant’s Lease, (c) any loan proceeds or proceeds of capital or equity contributions received by Borrower, (d) gratuities or service charges or other similar receipts which are to be paid over to Property employees or persons occupying similar
positions for performing similar duties, (e) Insurance Proceeds (other than Insurance Proceeds from business or rental interruption coverage) and Condemnation Proceeds, (f) excise taxes, sales taxes, use taxes, bed taxes, admission taxes, tourist
taxes, gross receipts taxes, value added taxes, entertainment taxes, or other taxes or similar charges payable to any Governmental Authority, (g) proceeds from the sale of FF&E no longer required for the operation of the Property, and (h) Rents
from month-to-month tenants or tenants that are included in any Bankruptcy Action. Any credit or refunds to guests and patrons with respect to amounts previously included in Gross Income from Operations shall be deducted from Gross Income from
Operations in the period when such credit or refund is issued. 
  
 “Guarantor” shall mean Wyndham International, Inc., a Delaware corporation. 
  
 “Guaranty” shall mean that certain Guaranty Agreement (Recourse), dated as of the date hereof, from Guarantor in favor of Lender, as the
same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Improvements” shall have the meaning set forth in the granting clause of the Mortgage. 
  
 “Indebtedness” shall mean, for any Person, on a particular date, the sum (without duplication) at such date of: (a) all indebtedness or
liability of such Person (including, without limitation, amounts for borrowed money and indebtedness in the form of mezzanine debt and preferred equity); (b) obligations evidenced by bonds, debentures, notes, or other similar instruments; (c)
obligations for the deferred purchase price of property or services (including trade obligations); (d) obligations under letters of credit; (e) obligations under acceptance facilities; (f) all guaranties, endorsements (other than for collection or
deposit in the ordinary course of business) and other contingent obligations to purchase, to provide funds for payment, to supply funds, to invest in any Person or entity, or otherwise to assure a creditor against loss; and (g) obligations secured
by any Liens, whether or not the obligations have been assumed. 
  
 “Indemnified Liabilities” shall have the meaning set forth on Section 10.13(b) hereof. 
  
 “Indemnified Person” shall have the meaning set forth in Section 9.2(b) hereof. 
  

 8 

 “Indemnifying Person” shall mean each of Borrower, Principal and Guarantor. 

 
 “Independent Director” or “Independent
Manager” shall mean a Person who is not at the time of initial appointment, or at any time while serving as a director or manager, as applicable, and has not been at any time during the preceding five (5) years: (a) a stockholder, director
(with the exception of serving as an Independent Director or Independent Manager), officer, employee, partner, member, attorney or counsel of Principal, Borrower or any Affiliate of either of them; (b) a customer, supplier or other Person who
derives any of its purchases or revenues from its activities with Principal, Borrower or any Affiliate of either of them (with the exception of serving as an Independent Director or Independent Manager); (c) a Person controlling or under common
control with any such stockholder, director, officer, partner, member, customer, supplier or other Person; or (d) a member of the immediate family of any such stockholder, director, officer, employee, partner, member, customer, supplier or other
Person. As used in this definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of management, policies or activities of a Person, whether through ownership of
voting securities, by contract or otherwise. 
  
 “Initial
Maturity Date” shall mean July 9, 2006. 
  
 “Insolvency Opinion” shall mean that certain non-consolidation opinion letter dated the date hereof delivered by Sidley Austin Brown & Wood LLP in connection with the Loan. 
  
 “Insurance Premiums” shall have the meaning set forth in
Section 6.1(b) hereof. 
  
 “Insurance
Proceeds” shall have the meaning set forth in Section 6.4(b) hereof. 
  
 “Interest Period” shall mean, with respect to any Payment Date, the period commencing on the ninth (9th) day of the preceding calendar month and terminating on the eighth (8th) day of the calendar
month in which such Payment Date occurs; provided, however, that no Interest Period shall end later than the Maturity Date (other than for purposes of calculating interest at the Default Rate), and the initial Interest Period shall begin on
the Closing Date and shall end on the immediately following eighth (8th) day of the calendar month. 
  
 “Interest Rate Cap Agreement” shall mean, as applicable, an Interest Rate Cap Agreement (together with the confirmation and schedules
relating thereto) in form and substance reasonably satisfactory to Lender between Borrower and an Acceptable Counterparty or a Replacement Interest Rate Cap Agreement. 
  
 “Junior Lender Security Documents” shall mean the Borrower Guaranty, the Second Mortgage and any other
mortgage, deed of trust, deed to secure debt or other similar instrument encumbering the Property or any portion thereof, the Equity Pledge Agreement or other pledge agreement or other grant of Lien encumbering any of the direct ownership interests
in the Borrower and securing, among other things, the Other Loans or any portion thereof. 
  
 “Lease” shall mean any lease, sublease or subsublease, letting, license, concession or other agreement (whether written or oral and whether now or hereafter in effect) pursuant to which any Person is
granted a possessory interest in, or right to use or occupy all or any portion of any space in the Property, and (a) every modification, amendment or other agreement relating 

  

 9 

 
to such lease, sublease, subsublease, or other agreement entered into in connection with such lease, sublease, subsublease, or other agreement, and (b) every
guarantee of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other party thereto. 
  
 “Legal Requirements” shall mean all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations,
ordinances, judgments, decrees and injunctions of Governmental Authorities affecting the Property or any part thereof, or the construction, use, alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force,
including, without limitation, the Americans with Disabilities Act of 1990, and all permits, licenses and authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments,
either of record or known to Borrower, at any time in force affecting the Property or any part thereof, including, without limitation, any which may (a) require repairs, modifications or alterations in or to the Property or any part thereof, or (b)
in any way limit the use and enjoyment thereof. 
  
 “Lender” shall have the meaning set forth in the introductory paragraph hereto, together with its successors and assigns. 
  
 “Letter of Credit” shall mean an irrevocable, unconditional and transferable letter of credit acceptable to Lender and the Rating
Agencies (either an annual, automatically renewing, letter of credit or one which does not expire until at least ten (10) Business Days after the Maturity Date) in favor of Lender and entitling Lender to draw thereon in the continental United
States, issued by a domestic Eligible Institution or the U.S. agency or branch of a foreign Eligible Institution. 
  
 “Liabilities” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “LIBOR” shall mean, with respect to each Interest Period,
the rate (expressed as a percentage per annum, for a one-month period, that appears on Telerate Page 3750 (or the successor thereto) as of 11:00 a.m., London time, on the related Determination Date. If such rate does not appear on Telerate Page 3750
as of 11:00 a.m., London time, on such Determination Date, LIBOR shall be the arithmetic mean of the offered rates (expressed as a percentage per annum) for deposits in U.S. dollars for a one-month period that appear on the Reuters Screen Libor Page
as of 11:00 a.m., London time, on such Determination Date, if at least two such offered rates so appear. If fewer than two such offered rates appear on the Reuters Screen Libor Page as of 11:00 a.m., London time, on such Determination Date, Lender
shall request the principal London office of any four major reference banks in the London interbank market selected by Lender 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 a one-month period as of 11:00 a.m., London time, on such Determination Date for the amounts of not less than U.S. $1,000,000. If at least two such offered quotations are so provided, LIBOR shall be the
arithmetic mean of such quotations. If fewer than two such quotations are so provided, Lender shall request any three major banks in New York City selected by Lender to provide such bank’s rate (expressed as a percentage per annum) for loans in
U.S. dollars to leading European banks for a one-month period as of approximately 11:00 a.m., New York City time on the applicable Determination Date for amounts of not less than U.S. $1,000,000. If at least two such 

  

 10 

 
rates are so provided, LIBOR shall be the arithmetic mean of such rates. LIBOR shall be determined conclusively by Lender or its agent. 
  
 “LIBOR Loan” shall mean the Loan at such time as interest
thereon accrues at a rate of interest based upon LIBOR. 
  
 “Licenses” shall have the meaning set forth in Section 4.1.22 hereof. 
  
 “Lien” shall mean any mortgage, deed of trust, lien, pledge, hypothecation, easement, restrictive covenant, preference, assignment,
security interest or any other encumbrance, charge or transfer of, or any agreement to enter into or create, any of the foregoing, on or affecting Borrower, the Property or any portion thereof or any interest therein, or any direct or indirect
interest in Borrower or Principal, including, without limitation, any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, the filing of any financing
statement, and mechanic’s, materialmen’s and other similar liens and encumbrances. 
  
 “Loan” shall mean the loan in the original principal amount of THIRTEEN MILLION THREE HUNDRED THOUSAND AND NO/100 DOLLARS ($13,300,000.00), made by Lender to Borrower pursuant to this Agreement.

  
 “Loan Documents” shall mean, collectively,
this Agreement, the Note, the Mortgage, the Assignment of Leases, the Environmental Indemnity, the Assignment of Management Agreement, the Guaranty, the Cash Management Agreement, the Property Account Agreement, the Equity Pledge Agreement, the
Collateral Assignment of Interest Rate Cap Agreement, the Junior Lender Security Documents and all other documents executed and/or delivered in connection with the Loan. 
  
 “London Business Day” shall mean any day other than a Saturday, Sunday or any other day on which commercial
banks in London, England are not open for business. 
  
 “Management Agreement” shall mean the management agreement entered into by and between Borrower and the Manager, as the same has been and may be amended, modified or supplemented from time to time, pursuant to which the
Manager is to provide management and other services with respect to the Property, or, if the context requires, the Replacement Management Agreement. 
  
 “Manager” shall mean Wyndham Management Corporation, a Delaware corporation, or, if the context requires, a Qualified Manager who is
managing the Property in accordance with the terms and provisions of this Agreement. 
  
 “Material Adverse Effect” shall mean any material adverse change in the use, operation or value of the Property and/or the business operations and/or the financial condition of a Significant Party.

  
 “Maturity Date” shall mean the Initial
Maturity Date (as the same may be extended in accordance with Sections 2.7 hereof), or such other date on which the final payment of principal 

  

 11 

 
of the Note becomes due and payable as therein or herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise.

  
 “Maximum Legal Rate” shall mean the maximum
nonusurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents, under the laws of
such state or states whose laws are held by any court of competent jurisdiction to govern the interest rate provisions of the Loan. 
  
 “Mezzanine Borrower” shall mean the obligor under any Mezzanine Loan, which entity shall meet the requirements set forth in Section
9.8(b) hereof. 
  
 “Mezzanine Loan” shall
have the meaning set forth in Section 9.8 hereof. 
  
 “Mezzanine Option” shall have the meaning set forth in Section 9.8 hereof. 
  
 “Moody’s” shall mean Moody’s Investors Service, Inc. 
  
 “Monthly Interest Payment” shall have the meaning set forth in Section 2.3.1. 
  
 “Mortgage” shall mean that certain first priority Mortgage,
Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated the date hereof, executed and delivered by Borrower as security for the Loan and encumbering the Property, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time. 
  
 “Mortgage
Borrower” shall have the meaning set forth in Section 9.8 hereof. 
  
 “Mortgage Loan” shall have the meaning set forth in Section 9.8 hereof. 
  
 “Mortgage Lender” shall have the meaning set forth in Section 9.8 hereof. 
  
 “Net Cash Flow” shall mean, for any period, the amount
obtained by subtracting (a) Operating Expenses and (b) an amount equal to four percent (4%) of Gross Income from Operations for such period, from Gross Income from Operations for such period. 
  
 “Net Cash Flow Schedule” shall have the meaning set forth in
Section 5.1.11(b) hereof. 
  
 “Net Cash Flow
Failure” shall mean that, at the end of any calendar quarter, the Aggregate Net Cash Flow for the preceding twelve (12) month period is less than eighty percent (80%) of the Aggregate Net Cash Flow as of the Closing Date, as determined by
Lender in its sole discretion, and in each case determining such amounts only for the Property and such Other Properties remaining subject to the liens of the Other Mortgages as of the date such determination is made. 
  
 “Net Operating Income” shall mean, for any period, the
amount obtained by subtracting Operating Expenses for such period from Gross Income from Operations for such period. 
  
 “Net Proceeds” shall have the meaning set forth in Section 6.4(b) hereof. 
  

 12 

 “Net Proceeds Deficiency” shall have the meaning set forth in Section 6.4(b)(vi)
hereof. 
  
 “Note” shall mean that certain
Promissory Note of even date herewith in the principal amount of THIRTEEN MILLION THREE HUNDRED THOUSAND AND NO/100 DOLLARS ($13,300,000.00), made by Borrower in favor of Lender, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time. 
  
 “Notice”
shall have the meaning set forth in Section 10.6 hereof. 
  
 “Obligations” shall mean, collectively, Borrower’s obligations for the payment of the Debt and the performance of the Other Obligations. 
  
 “Offering Document Date” shall have the meaning set forth in Section 5.1.11(d)(iv) hereof.

  
 “Officer’s Certificate” shall mean a
certificate delivered to Lender by Borrower which is signed by an authorized senior officer of the general partner or managing member of Borrower, as applicable, and solely with respect to the delivery of financial statements required pursuant to
Section 5.1.11 hereof, such certificate may also be signed by an authorized senior officer of Manager. 
  
 “Operating Expenses” shall mean, for any period, the total of all expenses, computed in accordance with GAAP, of whatever kind relating
to the operation, maintenance and/or management of the Property, which expenditures are incurred on a regular monthly or other periodic basis, including without limitation, utilities, ordinary repairs and maintenance, insurance, license fees,
property taxes and assessments, advertising expenses, management fees, payroll and related taxes, computer processing charges, operational equipment or other lease payments as approved by Lender, and other similar costs, but excluding depreciation,
Debt Service, Capital Expenditures, and contributions to the FF&E Reserve Funds, the Tax and Insurance Escrow Funds, the Debt Service Reserve Funds and any other reserves required under the Loan Documents. 
  
 “Other Borrowers” shall mean, individually or collectively,
Wyndham Commerce Owner, LLC, PAH-TAMPA, L.P. and Summerfield Hanover Owner, LLC. 
  
 “Other Borrower Loan Documents” shall mean, the loan agreements, the promissory notes, the mortgages, the deeds of trust, the assignments of leases and rents, and every other document or agreement
executed by the Other Borrowers, or any of them, or any other Person for the benefit of Lender, securing, evidencing or otherwise executed in connection with any one or more of the Other Loans and/or the Loan, as any of the same may hereafter be
amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Other Borrower Obligations” shall mean the Other Loans together with all obligations of every Other Borrower under the Other Borrower Loan Documents. 
  
 “Other Charges” shall mean all maintenance charges,
impositions other than Taxes, and any other charges, in each case imposed by Governmental Authorities, including, without limitation, vault charges and license fees for the use of vaults, chutes and similar areas adjoining 

  

 13 

 
the Property, now or hereafter levied or assessed or imposed against the Property or any part thereof. 
  
 “Other Loan Agreements” shall mean each Loan Agreement
entered into between any Other Borrower and Lender in respect of the applicable Other Loan. 
  
 “Other Loan” shall mean the other loans made by Lender to the Other Borrowers. 
  
 “Other Loan Shortfall” shall have the meaning set forth in Section 2.6.3(b) hereof. 
  
 “Other Mortgages” shall mean the other mortgages granted by
the Other Borrowers to, or in favor of, Lender with respect to the Other Properties. 
  
 “Other Property” shall mean, collectively, each parcel of real property (other than the Property) together with the improvements thereon and other real property appurtenant thereto securing any one or
more of the Other Loans. 
  
 “Other Obligations”
shall mean: (a) the performance of all obligations of Borrower contained herein; (b) the performance of each obligation of Borrower contained in any other Loan Document; and (c) the performance of each obligation of Borrower contained in any
renewal, extension, amendment, modification, consolidation, change of, substitution of, or replacement for, all or any part of this Agreement, the Note or any other Loan Documents. 
  
 “Outstanding Principal Balance” shall mean, as of any date, the outstanding principal balance of the Loan.

  
 “Payment Date” shall mean the ninth (9th) day
of each calendar month during the term of the Loan or, if such day is not a Business Day, the immediately preceding Business Day. 
  
 “Payment Direction Letters” shall have the meaning set forth in Section 2.6.1. 
  
 “Permitted Encumbrances” shall mean, collectively (a) the
Liens and security interests created by the Loan Documents, (b) all Liens, encumbrances and other matters disclosed in the Title Insurance Policy, (c) Liens, if any, for Taxes imposed by any Governmental Authority not yet due or delinquent, (d)
Financing Leases permitted pursuant to the provisions of this Agreement, and (e) such other title and survey exceptions as Lender has approved or may approve in writing in Lender’s sole discretion. 
  
 “Permitted Investments” shall have the meaning set forth in
the Cash Management Agreement. 
  
 “Person” shall
mean any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association, any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary
acting in such capacity on behalf of any of the foregoing. 
  
 “Personal Property” shall have the meaning set forth in the granting clause of the Mortgage. 
  

 14 

 “Physical Conditions Report” shall mean a report prepared by a company satisfactory to
Lender regarding the physical condition of the Property, satisfactory in form and substance to Lender in its sole discretion, which report shall, among other things, (i) confirm that the Property and its use comply, in all material respects, with
all applicable Legal Requirements (including zoning, subdivision and building codes and laws), and (ii) include a copy of a final certificate of occupancy with respect to all Improvements (unless previously delivered to Lender). 
  
 “Policies” shall have the meaning specified in Section
6.1(b) hereof. 
  
 “Prepayment Premium” shall
mean an amount equal to the following: one percent (1.0%) of the principal balance of the Loan being prepaid if the prepayment occurs on or after the date hereof through, and including, June 9, 2005. 
  
 “Prime Rate” shall mean the annual rate of interest publicly
announced by Citibank, N.A. in New York, New York, as its base rate, as such rate shall change from time to time. If Citibank, N.A. ceases to announce a base rate, Prime Rate shall mean the rate of interest published in The Wall Street
Journal from time to time as the “Prime Rate.” If more than one “Prime Rate” is published in The Wall Street Journal for a day, the average of such “Prime Rates” shall be used, and such average shall be
rounded up to the nearest one-hundredth (1/100th) of one percent. If The Wall Street Journal ceases to
publish the “Prime Rate,” Lender shall select an equivalent publication that publishes such “Prime Rate,” and if such “Prime Rates” are no longer generally published or are limited, regulated or administered by a
governmental or quasigovernmental body, then Lender shall select a comparable interest rate index. 
  
 “Prime Rate Loan” shall mean the Loan at such time as interest thereon accrues at a rate of interest based upon the Prime Rate.

  
 “Prime Rate Spread” shall mean the difference
(expressed as the number of basis points) between (a) LIBOR plus the Spread on the date LIBOR was last applicable to the Loan and (b) the Prime Rate on the date that LIBOR was last applicable to the Loan; provided, however, in no event
shall such difference be a negative number. 
  
 “Principal” shall mean the Special Purpose Entity corporation which is the managing member of Borrower. 
  
 “Property” shall mean each parcel of real property, the Improvements thereon and all personal property owned by Borrower and encumbered
by the Mortgage, together with all rights pertaining to such property and Improvements, as more particularly described in the granting clause of the Mortgage and referred to therein as the “Property”. 
  
 “Property Account” shall have the meaning set forth in
Section 2.6.1(a) hereof. 
  
 “Property Account
Agreement” shall mean that certain Property Account Agreement, dated as of the date hereof, by and among Borrower, Lender and Property Account Bank, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time. 
  

 15 

 “Property Account Bank” shall mean Wachovia Bank, National Association, or any successor
or permitted assigns thereof. 
  
 “Provided
Information” shall mean any and all financial and other information provided at any time by, or on behalf of, any Indemnifying Person with respect to the Property, any Significant Party and/or an Affiliated Manager. 
  
 “Public Company” shall mean a corporation or other Person
whose stock or ownership interests or (ii) depository receipts or their equivalent are publicly traded on a nationally recognized stock exchange, including, without limitation, NASDAQ or on the leading recognized stock exchange in Spain, Germany,
Italy, Canada, France, Tokyo, Australia, Singapore, England or Hong Kong, or in another country which requires companies publicly traded on such leading exchange to provide public information reasonably comparable to that required in the United
States. 
  
 “Qualified Borrower” shall mean a
Special Purpose Entity and otherwise approved by Lender in its sole discretion. 
  
 “Qualified Manager” shall mean either (a) Manager, or (b) a reputable and experienced management organization (which may be an Affiliate of Borrower) possessing experience in managing properties
similar in size, scope, use and value as the Property, provided, that, following a Securitization, or at such time as the Loan is scheduled to be included in a Securitization, Borrower shall have obtained prior written confirmation
from the applicable Rating Agencies that management of the Property by such Person will not cause a downgrade, withdrawal or qualification of the then current ratings of the Securities or any class thereof. 
  
 “Qualified Transferee” shall mean any one of the following
Persons, subject to the reasonable determination of Lender that such Person satisfies the applicable requirements set forth in this definition and which is not otherwise an Embargoed Person: 
  
 (a) a pension fund, pension trust or pension account that
has total assets of at least $500 million that is managed by an entity that controls or manages at least $1 billion of real estate equity assets; 
  
 (b) a pension fund advisor that controls or manages at least $1 billion of real estate equity assets immediately prior to any proposed
transfer hereunder; 
  
 (c) an insurance company
that is subject to supervision by the insurance commission, or a similar official or agency, of a State or territory of the United States (including the District of Columbia), which has a net worth, as of a date no more than six (6) months prior to
the date of the proposed transfer hereunder, of at least $500 million and controls real estate equity assets of at least $1 billion immediately prior to any proposed transfer hereunder; 
  
 (d) a corporation organized under the banking or trust company laws of the United States or any State or
territory of the United States (including the District of Columbia) that has a combined capital and surplus of at least $500 million and that immediately prior to a proposed transfer hereunder controls real estate equity assets of at least $1
billion; or 
  

 16 

 (e) any equity (a)(i) with a long-term unsecured debt rating from the Rating Agencies of
at least BBB- (or its equivalent) or (b) (1) that owns or operates, together with its affiliates, at least ten (10) first class hotel properties, (2) that has a net worth as of a date no more than six (6) months prior to the date of any proposed
transfer hereunder of at least $500 million and (3) that controls, together with its Affiliates, real estate equity assets of at least $1 billion immediately prior to any proposed transfer hereunder. 
  
 “Quarterly Net Cash Flow Test” shall have the meaning set
forth in Section 2.6.6. 
  
 “Rating
Agencies” shall mean each of S&P, Moody’s and Fitch, or any other nationally recognized statistical rating agency which rates the Securities. 
  

“Release Default” shall mean (i) a monetary Default under any Loan Document or (ii) any other material Default under any Loan Document
of which Lender has given written notice thereof to Borrower whether or not the applicable grace or cure period, if any, has expired. 
  
 “REMIC Trust” shall mean a “real estate mortgage investment conduit” within the meaning of Section 860D of the Code that holds
the Note. 
  
 “Rents” shall mean all rents,
receipts, revenues, income (including service charges), fees, payments and proceeds of sales of every kind received by or on behalf of Borrower, directly or indirectly, from operating the Property for that period, and services rendered to, and
rentals, percentage rentals and other fees, payments and charges received from, tenants, subtenants, licensees, concessionaires and occupants of commercial, hotel, public and retail space located in or at the Property, calculated on a cash basis,
whether in cash or on credit, including, without limitation, revenues from the rental of rooms, guest suites, conference and banquet rooms, food and beverage facilities, telephone services, laundry, vending, television and parking at the Property,
and other fees and charges resulting from the operations of the Property by or on behalf of Borrower in the ordinary course of business, and proceeds, if any, from business interruption or other loss of income insurance (net of the costs of
collection thereof) and also including any proceeds received by Borrower in respect of the Interest Rate Cap Agreement, non-recurring income and non-Property related income (as determined by Lender in its reasonable discretion), security deposits
received from any tenant but only when the same are applied to rent or any other of such tenant’s obligations in accordance with the terms of such tenant’s Lease, any loan proceeds or proceeds of capital or equity contributions received by
Borrower, Insurance Proceeds and Condemnation Proceeds, proceeds from the sale of FF&E no longer required for the operation of the Property, and rents from month-to-month tenants or tenants that are included in any Bankruptcy Action. 

 
 “Replaced Borrower” shall have the meaning set forth in
Section 2.8 hereof. 
  
 “Replaced Loan”
shall have the meaning set forth in Section 2.8 hereof. 
  
 “Replacement Interest Rate Cap Agreement” means an interest rate cap agreement from an Acceptable Counterparty with a Strike Price identical to, and all other terms substantially similar to those set forth in, the Interest
Rate Cap Agreement except that the same shall be effective in connection with replacement of the Interest Rate Cap Agreement following a downgrade, withdrawal or qualification of the long-term unsecured debt rating of the 

  

 17 

 
Counterparty; provided, that, to the extent any such interest rate cap agreement does not meet the foregoing requirements, a “Replacement
Interest Rate Cap Agreement” shall be such interest rate cap agreement approved in writing by Lender and for which Lender has received a confirmation from the applicable Rating Agencies that such Replacement Interest Rate Cap Agreement will not
cause a downgrade, withdrawal or qualification of the then current rating of the Securities or any class thereof. 
  
 “Replacement Management Agreement” shall mean, collectively: (a) either (i) a management agreement with a Qualified Manager substantially
in the same form and substance as the Management Agreement, or (ii) a management agreement with a Qualified Manager, which management agreement shall be reasonably acceptable to Lender in form and substance, provided, with respect to this
subclause (ii), Lender, at its option, may require that Borrower obtain confirmation from the applicable Rating Agencies that such management agreement will not cause a downgrade, withdrawal or qualification of the then current rating of the
Securities or any class thereof; and (b) an assignment of management agreement and subordination of management fees substantially in the form then used by Lender (or of such other form and substance reasonably acceptable to Lender), executed and
delivered to Lender by Borrower and such Qualified Manager at Borrower’s expense. 
  
 “Required Repair Account” shall have the meaning set forth in Section 7.1.1 hereof. 
  
 “Required Repair Funds” shall have the meaning set forth in Section 7.1.1 hereof. 
  
 “Required Repairs” shall have the meaning set forth in
Section 7.1.1 hereof. 
  
 “Reserve Funds”
shall mean, collectively, the Tax and Insurance Escrow Funds, the FF&E Reserve Funds, the Debt Service Reserve Funds, the Required Repair Funds, and any other escrow fund established pursuant to the Loan Documents. 
  
 “Restoration” shall mean the repair and restoration of the
Property after a Casualty or Condemnation as nearly as possible to the condition the Property was in immediately prior to such Casualty or Condemnation, with such alterations as may be reasonably approved by Lender (it being agreed that the
commencement of the preparation of plans and specifications shall constitute commencement of the Restoration). 
  
 “Restricted Party” shall mean, collectively (a) Borrower, Principal, Guarantor and any Affiliated Manager and (b) any shareholder,
partner, member, non-member manager, direct or indirect legal or beneficial owner, agent and employee of, Borrower, Principal, Guarantor, any Affiliated Manager or any non-member manager. 
  
 “RICO” shall mean Racketeer Influenced and Corrupt Organizations Act. 
  
 “S&P” shall mean Standard & Poor’s Ratings
Group, a division of the McGraw-Hill Companies. 
  
 “Sale
or Pledge” shall mean a voluntary or involuntary sale, conveyance, assignment, transfer, encumbrance or pledge of a legal or beneficial interest. 
  

 18 

 “Second Extension Commencement Date” shall have the meaning set forth in Section
2.7.2. 
  
 “Second Extension Term” shall have
the meaning set forth in Section 2.7.2. 
  
 “Second
Mortgage” shall mean that certain Second Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated the date hereof, executed and delivered by Borrower to Lender as additional security for, among other things,
(x) the Borrower’s obligations under the Borrower Guaranty and (y) the Other Borrower Obligations, and encumbering the Property, as same may be amended, restated, replaced, supplemented or otherwise modified from time to time, which Second
Mortgage shall be subject and subordinate to the Liens of the Mortgage and the Assignment of Leases. 
  
 “Securities” shall have the meaning set forth in Section 9.1 hereof. 
  
 “Securities Act” shall have the meaning set forth in Section 9.2(a) hereof. 
  
 “Securitization” shall have the meaning set forth in
Section 9.1 hereof. 
  
 “Servicer” shall
have the meaning set forth in Section 9.6 hereof. 
  
 “Servicing Agreement” shall have the meaning set forth in Section 9.6 hereof. 
  
 “Severed Loan Documents” shall have the meaning set forth in Section 8.2(b) hereof. 
  
 “Significant Party” shall mean each of Borrower, Guarantor
and Principal. 
  
 “Special Purpose Entity” shall
mean a corporation, limited partnership or limited liability company which at all times prior to, on and after the date hereof: 
  
 (a) was, is and will be organized solely for the purpose of (i) acquiring, developing, owning, holding, selling, leasing, transferring,
exchanging, managing and/or operating the Property, entering into this Agreement and the other Loan Documents with Lender, refinancing the Property in connection with a permitted repayment of the Loan, and transacting lawful business that is
incident, necessary and appropriate to accomplish the foregoing; or (ii) acting as managing member of the limited liability company or general partner of the limited partnership that owns and operates the Property; 
  
 (b) has not been, is not, and will not be engaged in any
business unrelated to (i) the acquisition, development, ownership, management and/or operation of the Property, or (ii) acting as a member of the limited liability company that owns and operates the Property; 
  
 (c) has not had, does not have, and will not have, any
assets other than those related to the Property, its membership interest in the limited liability company that owns and operates the Property, or acts as the managing member of either of the foregoing, as applicable; 
  
 (d) has not engaged in, sought or consented to and will not
engage in, seek or consent to, any dissolution, winding up, liquidation, consolidation, merger, sale of all or 

  

 19 

 
substantially all of its assets, transfer of membership interests or amendment of its articles of incorporation, articles of organization or operating
agreement (as applicable) with respect to the matters set forth in this definition; 
  
 (e) if such entity is a corporation, has had, now has and will have at least two (2) Independent Directors, and has not caused or allowed,
and will not cause or allow, the board of directors of such entity to take any action requiring the unanimous affirmative vote of one hundred percent (100%) of the members of its board of directors unless two (2) Independent Directors shall have
participated in such vote; 
  
 (f) if such entity
is a limited liability company with more than one member, has had, now has and will have at least one member that is a Special Purpose Entity that is a corporation that has at least two (2) Independent Directors and that owns at least one percent
(1.0%) of the equity of the limited liability company; 
  
 (g) if such entity is a limited liability company with only one member, has been, now is, and will be a limited liability company that has (i) as its only member a non-managing member, (ii) at least two (2) Independent Managers and has not
caused or allowed, and will not cause or allow, the board of managers of such entity to take any action requiring the unanimous affirmative vote of one hundred percent (100%) of the managers unless two (2) Independent Managers shall have
participated in such vote, and (iii) at least one (1) springing member that will become the non-managing member of such entity upon the dissolution of the existing non-managing member; 
  
 (h) if such entity is (i) a limited liability company, has had, now has, and will have articles of
organization and/or an operating agreement, as applicable, or (ii) a corporation, has had, now has, and will have a certificate of incorporation that, in each of the foregoing cases, provides that such entity will not: (A) dissolve, merge, liquidate
or consolidate; (B) sell all or substantially all of its assets or the assets of Borrower (as applicable); (C) engage in any other business activity or amend its organizational documents with respect to the matters set forth in this definition
without the consent of Lender; or (D) without the affirmative vote of two (2) Independent Directors and of all other directors of the corporation (that is such entity or the managing or co-managing member of such entity), file a bankruptcy or
insolvency petition or otherwise institute insolvency proceedings with respect to itself or to any other entity in which it has a direct or indirect legal or beneficial ownership interest; 
  
 (i) has been, is and intends to remain solvent and has paid
and intends to continue to pay its debts and liabilities (including, as applicable, shared personnel and overhead expenses) from its assets as the same have or shall become due, and has maintained, is maintaining and intends to maintain adequate
capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations; 
  
 (j) has not failed, and will not fail, to correct any known misunderstanding regarding the separate identity of such entity; 

 

 20 

 (k) has maintained and will maintain its accounts, books and records separate from any
other Person and has filed and will file its own tax returns, except to the extent that it has been or is required to file consolidated tax returns by law; 
  
 (l) has maintained and will maintain its own records, books, resolutions and agreements; 
  
 (m) other than as provided in this Agreement and the Cash
Management Agreement, (i) has not commingled, and will not commingle, its funds or assets with those of any other Person and (ii) has not participated and will not participate in any cash management system with any other Person; 
  
 (n) has held and will hold its assets in its own name;

  
 (o) has conducted and will conduct its
business in its name or in a name franchised or licensed to it by an entity other than an Affiliate of Borrower, except for services rendered under a business management services agreement with an Affiliate that complies with the terms contained in
subsection (cc) below, so long as the manager, or equivalent thereof, under such business management services agreement holds itself out as an agent of Borrower; 
  
 (p) has maintained and will maintain its financial statements, accounting records and other entity documents
separate from any other Person and has not permitted, and will not permit, its assets to be listed as assets on the financial statement of any other entity except as required by GAAP; provided, however, that any such consolidated
financial statement shall contain a note indicating that its separate assets and liabilities are neither available to pay the debts of the consolidated entity nor constitute obligations of the consolidated entity; 
  
 (q) has paid and will pay its own liabilities and expenses,
including the salaries of its own employees, out of its own funds and assets, and has maintained and will maintain a sufficient number of employees in light of its contemplated business operations; 
  
 (r) has observed and will observe all partnership, corporate
or limited liability company formalities, as applicable; 
  
 (s) has had no and will have no Indebtedness other than (i) the Loan, (ii) unsecured trade and operational debt incurred in the ordinary course of business relating to the ownership and operation of the Property and
the routine administration of Borrower, in amounts not to exceed three percent (3%) of the original principal amount of the Loan, in the aggregate, which liabilities are not more than sixty (60) days past the date incurred, are not evidenced by a
note and are paid when due, and which amounts are normal and reasonable under the circumstances, (iii) Financing Leases except as permitted pursuant to this Agreement, and (iv) such other liabilities (including the Borrower Guaranty) that are
permitted or required pursuant to this Agreement;  
  
 (t) has not assumed or guaranteed or become obligated for, and will not assume or guarantee or become obligated for the debts of any other Person and has not held out and will not hold out its credit as being
available to satisfy the obligations of any other Person except as permitted pursuant to this Agreement other than the Borrower Guaranty; 
  

 21 

 (u) has not acquired and will not acquire obligations or securities of its partners,
members or shareholders or any other Affiliate; 
  
 (v) has allocated and will allocate, fairly and reasonably, any overhead expenses that are shared with any Affiliate, including, but not limited to, paying for shared office space and services performed by any employee of an Affiliate;

  
 (w) has maintained and used, now maintains
and uses, and will maintain and use, separate stationery, invoices and checks bearing its name. The stationery, invoices, and checks utilized by the Special Purpose Entity or utilized to collect its funds or pay its expenses have borne and shall
bear its own name and have not borne and shall not bear the name of any other entity unless such entity is clearly designated as being the Special Purpose Entity’s agent; 
  
 (x) has not pledged and will not pledge its assets for the benefit of any other Person other than in
connection with the Other Loans; 
  
 (y) has held
itself out and identified itself, and will hold itself out and identify itself, as a separate and distinct entity under its own name or in a name franchised or licensed to it by an entity other than an Affiliate of Borrower and not as a division or
part of any other Person, except for services rendered under a business management services agreement with an Affiliate that complies with the terms contained in subsection (cc) below, so long as the manager, or equivalent thereof, under such
business management services agreement holds itself out as an agent of Borrower; 
  
 (z) has maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or
identify its individual assets from those of any other Person; 
  
 (aa) has not made and will not make loans to any Person or hold evidence of indebtedness issued by any other Person or entity (other than cash and investment-grade securities issued by an entity that is not an
Affiliate of or subject to common ownership with such entity); 
  
 (bb) has not identified and will not identify its partners, members or shareholders, or any Affiliate of any of them, as a division or part of it, and has not identified itself, and shall not identify itself, as a
division of any other Person; 
  
 (cc) has not
entered into or been a party to, and will not enter into or be a party to, any transaction with its partners, members, shareholders or Affiliates except (i) in the ordinary course of its business and on terms which are intrinsically fair,
commercially reasonable and are no less favorable to it than would be obtained in a comparable arm’s-length transaction with an unrelated third party, and (ii) in connection with this Agreement; 
  
 (dd) has not had and will not have any obligation to
indemnify, and has not indemnified and will not indemnify its partners, officers, directors or members, as the case may be, unless such an obligation was and is fully subordinated to the Obligations and will not constitute a claim against the
Obligations in the event that cash flow in excess of the amount required to pay the Obligations is insufficient to pay such obligation; 
  

 22 

 (ee) if such entity is a corporation, it has considered and shall consider the interests
of its creditors in connection with all corporate actions; 
  
 (ff) does not and will not have any of its obligations guaranteed by any Affiliate other than in connection with the Other Loans; and 
  
 (gg) has complied and will comply with all of the terms and provisions contained in its organizational
documents. The statement of facts contained in its organizational documents are true and correct and will remain true and correct. 
  
 “Spread” shall mean one and 20/100 percent (1.20%). 
  
 “Standard Statements” shall have the meaning set forth in Section 5.1.11(d)(i) hereof. 

 
 “State” shall mean the State or Commonwealth in which the
Property or any part thereof is located. 
  
 “Strike
Price” shall mean seven percent (7%). 
  
 “Substitute Borrower” shall have the meaning set forth in Section 2.8. 
  
 “Substitute Loan Documents” shall have the meaning set forth in Section 2.8. 
  
 “Substitute Property” shall have the meaning set forth in
Section 2.8. 
  
 “Substitution” shall have
the meaning set forth in Section 2.8. 
  
 “Substitution Date” shall have the meaning set forth in Section 2.8. 
  
 “Substitution Loan” shall have the meaning set forth in Section 2.8. 
  
 “Survey” shall mean a survey of the Property prepared pursuant to the requirements contained in Section
4.1.27 hereof. 
  
 “Sweep Event” shall mean
the period following the occurrence of (a) an Event of Default, or (b) a default beyond the expiration of applicable notice and cure periods under the Management Agreement, or (c) a Net Cash Flow Failure and ending on a “Sweep Event
Termination.” A Sweep Event shall be terminated (a “Sweep Event Termination”) (i) with respect to an Event of Default (but not more than one (1) time during the term of the Loan, as the same may be extended) provided such Event
of Default has been cured and such cure is accepted by Lender, provided that Lender has not otherwise accelerated the Loan, moved for a receiver or commenced foreclosure proceedings, and/or (ii) with respect to a default by Manager under the
Management Agreement, the replacement of the Manager with a Qualified Manager pursuant to a Replacement Management Agreement, and/or (iii) with respect to a Net Cash Flow Failure (but not more than once every twelve (12) months) if, for the trailing
twelve (12) month period preceding the date of determination, the Aggregate Net Cash Flow is equal to or greater than eighty percent (80%) of the Aggregate Net Cash Flow as of the Closing Date for two (2) consecutive calendar quarters. 

 

 23 

 “Tax and Insurance Escrow Funds” shall have the meaning set forth in Section 7.2
hereof. 
  
 “Taxes” shall mean all real estate
and personal property taxes, assessments, water rates or sewer rents, now or hereafter levied or assessed or imposed against the Property or part thereof, together with all interest and penalties thereon. 
  
 “Third Extension Commencement Date” shall have the meaning
set forth in Section 2.7.3. 
  
 “Third Extension
Term” shall have the meaning set forth in Section 2.7.3. 
  
 “Threshold Amount” shall have the meaning set forth in Section 5.1.21 hereof. 
  
 “Title Company” shall mean, collectively, Fidelity National Title Insurance Company and National Land Tenure, or any successor title
company acceptable to Lender and licensed to issue title insurance in the State in which the Property is located. 
  
 “Title Insurance Policies” shall mean collectively, (a) an ALTA mortgagee title insurance policy in a form acceptable to Lender (or, if
the Property is in a State which does not permit the issuance of such ALTA policy, such form as shall be permitted in such State and acceptable to Lender) issued with respect to the Property and insuring the lien of the Mortgage encumbering the
Property, and (b) an ALTA mortgagee title insurance policy in a form acceptable to Lender (or, if the Property is in a State which does not permit the issuance of such ALTA policy, such form as shall be permitted in such State and acceptable to
Lender) issued with respect to the Property and insuring the lien of the Second Mortgage encumbering the Property. 
  
 “Transfer” shall have the meaning set forth in Section 5.2.10(b) hereof. 
  
 “Transferee” shall have the meaning set forth in Section
5.2.10(e) hereof. 
  
 “UCC” or
“Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in the State in which the Property is located. 
  
 “Unavoidable Delays” means delays due to strikes, lockouts, acts of God, unusually severe weather, inability to obtain labor or materials
(except as may be due to Borrower’s or any of Borrower’s contractors’ or subcontractors’ economic inability to acquire same), government restrictions, enemy action, civil commotion, fire, casualties or similar causes beyond
Borrower’s reasonable control. 
  
 “U.S.
Obligations” shall mean non-redeemable securities evidencing an obligation to timely pay principal and/or interest in a full and timely manner that are direct obligations of the United States of America for the payment of which its full
faith and credit is pledged. 
  
 “Wyndham” shall
have the meaning set forth in Section 5.2.10(c). 
  

 24 

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

  
 ARTICLE 2 
  
 GENERAL TERMS 
  
 Section 2.1 Loan Commitment; Disbursement to Borrower. 
  
 2.1.1 Agreement to Lend and Borrow. Subject to and
upon the terms and conditions set forth herein, Lender hereby agrees to make and Borrower hereby agrees to borrow the Loan on the Closing Date. 
  
 2.1.2 Single Disbursement to Borrower. Borrower may request and receive only one disbursement hereunder in respect of the Loan and
any amount borrowed and repaid hereunder in respect of the Loan may not be reborrowed. 
  
 2.1.3 The Note, Mortgage and Loan Documents. The Loan shall be evidenced by the Note and secured by the Mortgage, the Assignment of
Leases and the other Loan Documents. 
  
 2.1.4
Use of Proceeds. Borrower shall use the proceeds of the Loan to (a) refinance the Property and/or repay and discharge any existing loans relating to the Property, (b) pay all past-due Basic Carrying Costs, if any, with respect to the
Property, (c) make initial deposits into the Reserve Funds on the Closing Date in the amounts provided herein and in the other Loan Documents, (d) pay costs and expenses incurred in connection with the closing of the Loan, as approved by Lender, (d)
fund any working capital requirements of the Property, and (e) distribute the balance, if any, to Borrower. 
  
 Section 2.2 Interest Rate. 
  
 2.2.1 Interest Generally. Interest on the Outstanding Principal Balance shall accrue from the Closing Date to but excluding the
Maturity Date at the Applicable Interest Rate. 
  
 2.2.2 Interest Calculation. Interest on the Outstanding Principal Balance shall be calculated by multiplying (a) the actual number of days elapsed in the period for which the calculation is being made by (b) a daily rate based on a
three hundred sixty (360) day year by (c) the Outstanding Principal Balance. 
  

 25 

 2.2.3 Determination of Interest Rate. 
  
 (a) The Applicable Interest Rate with respect to the Loan
shall be: (i) LIBOR plus the Spread with respect to the applicable Interest Period for a LIBOR Loan; or (ii) the Prime Rate plus the Prime Rate Spread for a Prime Rate Loan if the Loan is converted to a Prime Rate Loan pursuant to the provisions of
Section 2.2.3 (c) or (f). 
  
 (b)
Subject to the terms and conditions of this Section 2.2.3, the Loan shall be a LIBOR Loan and Borrower shall pay interest on the Outstanding Principal Balance at LIBOR plus the Spread for the applicable Interest Period. Any change in the rate
of interest hereunder due to a change in the Applicable Interest Rate shall become effective as of the opening of business on the first day on which such change in the Applicable Interest Rate shall become effective. Each determination by Lender of
the Applicable Interest Rate shall be conclusive and binding for all purposes, absent manifest error. 
  
 (c) In the event that Lender shall have determined (which determination shall be conclusive and binding upon Borrower absent manifest
error) that by reason of circumstances affecting the interbank Eurodollar market, adequate and reasonable means do not exist for ascertaining LIBOR, then Lender shall forthwith give notice by telephone of such determination, confirmed in writing, to
Borrower at least one (1) day prior to the last day of the related Interest Period. If such notice is given, the related outstanding LIBOR Loan shall be converted, on the last day of the then current Interest Period, to a Prime Rate Loan.

  
 (d) If, pursuant to the terms of this
Agreement, any portion of the Loan has been converted to a Prime Rate Loan and Lender shall determine (which determination shall be conclusive and binding upon Borrower absent manifest error) that the event(s) or circumstance(s) which resulted in
such conversion shall no longer be applicable, Lender shall give notice by telephone of such determination, confirmed in writing, to Borrower at least one (1) day prior to the last day of the related Interest Period. If such notice is given, the
related outstanding Prime Rate Loan shall be converted to a LIBOR Loan on the last day of the then current Interest Period. 
  
 (e) With respect to a LIBOR Loan, all payments made by Borrower hereunder shall be made free and clear of, and without reduction for or on
account of, income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions, reserves or withholdings imposed, levied, collected, withheld or assessed by any Governmental Authority, which are imposed, enacted or become effective
after the date hereof (such non-excluded taxes being referred to collectively as “Foreign Taxes”), excluding income and franchise taxes of the United States of America or any political subdivision or taxing authority thereof or
therein (including Puerto Rico). If any Foreign Taxes are required to be withheld from any amounts payable to Lender hereunder, the amounts so payable to Lender shall be increased to the extent necessary to yield to Lender (after payment of all
Foreign Taxes) interest or any such other amounts payable hereunder at the rate or in the amounts specified hereunder. Whenever any Foreign Tax is payable pursuant to applicable law by Borrower, as promptly as possible thereafter, Borrower shall
send to Lender an original official receipt, if available, or certified copy thereof showing payment of such Foreign Tax. Borrower hereby indemnifies Lender for any incremental taxes, interest or penalties that may become payable by Lender which may
result from any failure by Borrower to pay any such Foreign Tax when due to the appropriate taxing authority or any failure by Borrower to remit to Lender the required receipts or other required documentary evidence. 
  

 26 

 (f) If any requirement of law or any change therein or in the interpretation or
application thereof, shall hereafter make it unlawful for Lender to make or maintain a LIBOR Loan as contemplated hereunder (i) the obligation of Lender hereunder to make a LIBOR Loan or to convert a Prime Rate Loan to a LIBOR Loan shall be canceled
forthwith, and (ii) any outstanding LIBOR Loan shall be converted automatically to a Prime Rate Loan on the next succeeding Payment Date or within such earlier period as required by law. Borrower hereby agrees promptly to pay Lender, upon demand,
any additional amounts necessary to compensate Lender for any costs incurred by Lender in making any conversion in accordance with this Agreement, including, without limitation, any interest or fees payable by Lender to lenders of funds obtained by
it in order to make or maintain the LIBOR Loan hereunder. Lender’s notice of such costs, as certified to Borrower, shall be conclusive absent manifest error. 
  
 (g) In the event that any change in any requirement of law or in the interpretation or application thereof,
or compliance by Lender with any request or directive (whether or not having the force of law) hereafter issued from any central bank or other Governmental Authority: 
  

	 	(i)	shall hereafter impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, or deposits or other liabilities in or
for the account of, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of Lender which is not otherwise included in the determination of LIBOR hereunder; 

  

	 	(ii)	shall hereafter have the effect of reducing the rate of return on Lender’s capital as a consequence of its obligations hereunder to a level below that which Lender could have
achieved but for such adoption, change or compliance (taking into consideration Lender’s policies with respect to capital adequacy) by any amount deemed by Lender to be material; or 

  

	 	(iii)	shall hereafter impose on Lender any other condition and the result of any of the foregoing is to increase the cost to Lender of making, renewing or maintaining loans or extensions
of credit or to reduce any amount receivable hereunder; 

  
 then, in
any such case, Borrower shall promptly pay Lender, upon demand, any additional amounts necessary to compensate Lender for such additional cost or reduced amount receivable which Lender deems to be material as determined by Lender. If Lender becomes
entitled to claim any additional amounts pursuant to this Section 2.2.3(g), Lender shall provide Borrower with not less than ninety (90) days notice specifying in reasonable detail the event by reason of which it has become so entitled and
the additional amount required to fully compensate Lender for such additional cost or reduced amount. A certificate as to any additional costs or amounts payable pursuant to the foregoing sentence submitted by Lender to Borrower shall be conclusive
in the absence of manifest error. This provision shall survive payment of the Note and the satisfaction of all other obligations of Borrower under this Agreement and the Loan Documents. 
  

 27 

 (h) Borrower agrees to indemnify Lender and to hold Lender harmless from any loss or
expense which Lender sustains or incurs as a consequence of (i) any default by Borrower resulting in a loss or expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain a LIBOR Loan hereunder,
(ii) any prepayment (whether voluntary or mandatory) of the LIBOR Loan on a day that is not a Payment Date unless Borrower did not give the prior notice of such prepayment required pursuant to the terms of this Agreement, including, without
limitation, such loss or expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain the LIBOR Loan hereunder, and (iii) the conversion (if such conversion is caused by any act or omission of
Borrower) of the Applicable Interest Rate from LIBOR plus the Spread to the Prime Rate plus the Prime Rate Spread with respect to any portion of the Outstanding Principal Balance then bearing interest at LIBOR plus the Spread on a date other than
the Payment Date immediately following the last day of an Interest Period, including, without limitation, such loss or expenses arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain a LIBOR Loan
hereunder (the amounts referred to in clauses (i), (ii) and (iii) are herein referred to collectively as the “Breakage Costs”); provided, however, Borrower shall not indemnify Lender from any loss or expense arising
from Lender’s willful misconduct or gross negligence. This provision shall survive payment of the Note in full and the satisfaction of all other obligations of Borrower under this Agreement and the other Loan Documents. 
  
 (i) Lender shall not be entitled to claim compensation
pursuant to this Section 2.2.3 for any Foreign Taxes, increased cost or reduction in amounts received or receivable hereunder, or any reduced rate of return, which was incurred or which accrued more than ninety (90) days before the date
Lender notified Borrower of the change in law or other circumstance on which such claim of compensation is based and delivered to Borrower a written statement setting forth in reasonable detail the basis for calculating the additional amounts owed
to Lender under this Section 2.2.3, which statement shall be conclusive and binding upon all parties hereto absent manifest error. 
  
 2.2.4 Additional Costs. Lender will use reasonable efforts (consistent with legal and regulatory restrictions) to maintain the
availability of the LIBOR Loan and to avoid or reduce any increased or additional costs payable by Borrower under Section 2.2.3, including, if requested by Borrower, a transfer or assignment of the Loan to a branch, office or Affiliate of
Lender in another jurisdiction, or a redesignation of its lending office with respect to the Loan, in order to maintain the availability of the LIBOR Loan or to avoid or reduce such increased or additional costs, provided that the transfer or
assignment or redesignation (a) would not result in any additional costs, expenses or risk to Lender that are not reimbursed by Borrower and (b) would not be disadvantageous in any other respect to Lender as determined by Lender in its sole
discretion. 
  
 2.2.5 Default Rate. In the
event that, and for so long as, any Event of Default shall have occurred and be continuing, the Outstanding Principal Balance and, to the extent permitted by law, all accrued and unpaid interest in respect of the Loan and any other amounts due
pursuant to the Loan Documents, shall accrue interest at the Default Rate, calculated from the date such payment was due without regard to any grace or cure periods contained herein. 
  

 28 

 2.2.6 Usury Savings. This Agreement, the Note and the other Loan Documents are
subject to the express condition that at no time shall Borrower be obligated or required to pay interest on the principal balance of the Loan at a rate which could subject Lender to either civil or criminal liability as a result of being in excess
of the Maximum Legal Rate. If, by the terms of this Agreement or the other Loan Documents, Borrower is at any time required or obligated to pay interest on the principal balance due hereunder at a rate in excess of the Maximum Legal Rate, the
Applicable Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to the Maximum Legal Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed to have been payments in reduction of
principal and not on account of the interest due hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of the sums due under the Loan, shall, to the extent permitted by applicable law, be amortized, prorated,
allocated, and spread throughout the full stated term of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed the Maximum Legal Rate of interest from time to time in effect and applicable to
the Loan for so long as the Loan is outstanding. 
  
 2.2.7 Interest Rate Cap Agreement. 
  
 (a) On or before the earlier to occur of (y) September 1, 2004 or (z) the date which is two (2) weeks prior to the printing of the preliminary prospectus in connection with a Securitization (which date shall be provided to Borrower at least
five (5) Business Days in advance thereof), Borrower shall enter into an Interest Rate Cap Agreement with a LIBOR strike price equal to the Strike Price. The Interest Rate Cap Agreement (i) shall be in a form and substance reasonably acceptable to
Lender, (ii) shall be with an Acceptable Counterparty, (iii) shall direct such Acceptable Counterparty to deposit directly into the Property Account any amounts due Borrower under such Interest Rate Cap Agreement so long as any portion of the Debt
exists, provided, that, the Debt shall be deemed to exist if the Property is transferred by judicial or non-judicial foreclosure or deed-in-lieu thereof, (iv) shall be for a period equal to the term of the Loan, and (v) shall have an
initial notional amount equal to the principal balance of the Loan. Borrower shall collaterally assign to Lender, pursuant to the Collateral Assignment of Interest Rate Cap Agreement, all of its right, title and interest to receive any and all
payments under the Interest Rate Cap Agreement, and shall deliver to Lender an executed counterpart of such Interest Rate Cap Agreement (which shall, by its terms, authorize the assignment to Lender and require that payments be deposited directly
into the Property Account). 
  
 (b) Borrower
shall comply with all of its obligations under the terms and provisions of the Interest Rate Cap Agreement. All amounts paid by the Counterparty under the Interest Rate Cap Agreement to Borrower or Lender shall be deposited immediately into the
Property Account. Borrower shall take all actions reasonably requested by Lender to enforce Lender’s rights under the Interest Rate Cap Agreement in the event of a default by the Counterparty and shall not waive, amend or otherwise modify any
of its rights thereunder. 
  
 (c) In the event of
any downgrade below “A+” (or its equivalent), withdrawal or qualification of the rating of the Counterparty by S&P or Moody’s, Borrower shall replace the Interest Rate Cap Agreement with a Replacement Interest Rate Cap Agreement
not later than ten (10) Business Days following receipt of notice from Lender of such downgrade, withdrawal or qualification. 
  

 29 

 (d) In the event that Borrower fails to purchase and deliver to Lender the Interest Rate
Cap Agreement or fails to maintain the Interest Rate Cap Agreement in accordance with the terms and provisions of this Agreement, Lender may purchase the Interest Rate Cap Agreement and the cost incurred by Lender in purchasing such Interest Rate
Cap Agreement shall be paid by Borrower to Lender with interest thereon at the Default Rate from the date such cost was incurred by Lender until such cost is reimbursed by Borrower to Lender. 
  
 (e) In connection with the Interest Rate Cap Agreement,
Borrower shall obtain and deliver to Lender an opinion from counsel (which counsel may be in-house counsel for the Counterparty) for the Counterparty (upon which Lender and its successors and assigns may rely) which shall provide, in relevant part,
that: 
  

	 	(i)	the Counterparty is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation and has the organizational power and authority to
execute and deliver, and to perform its obligations under, the Interest Rate Cap Agreement; 

  

	 	(ii)	the execution and delivery of the Interest Rate Cap Agreement by the Counterparty, and any other agreement which the Counterparty has executed and delivered pursuant thereto, and
the performance of its obligations thereunder have been and remain duly authorized by all necessary action and do not contravene any provision of its certificate of incorporation or by-laws (or equivalent organizational documents) or any law,
regulation or contractual restriction binding on or affecting it or its property; 

  

	 	(iii)	all consents, authorizations and approvals required for the execution and delivery by the Counterparty of the Interest Rate Cap Agreement, and any other agreement which the
Counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been obtained and remain in full force and effect, all conditions thereof have been duly complied with, and no other action by, and no
notice to or filing with any Governmental Authority or regulatory body is required for such execution, delivery or performance; and 

  

	 	(iv)	the Interest Rate Cap Agreement, and any other agreement which the Counterparty has executed and delivered pursuant thereto, has been duly executed and delivered by the Counterparty
and constitutes the legal, valid and binding obligation of the Counterparty, enforceable against the Counterparty in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally,
and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 

  

 30 

 Section 2.3 Loan Payment. 
  
 2.3.1 Payments Generally. Borrower shall pay to Lender on each Payment Date the interest accrued on
the Loan for the preceding Interest Period (the “Monthly Interest Payment”). The first interest accrual period hereunder shall commence on and include the Closing Date and end on July 8, 2004. Each interest accrual period thereafter
shall commence on the ninth (9th) day of each calendar month during the term of the Loan and shall end on and include the eighth (8th) day of the next occurring calendar month. For purposes of making payments hereunder, but not for purposes of
calculating interest accrual periods, if the day on which such payment is due is not a Business Day, then amounts due on such date shall be due on the immediately preceding Business Day. With respect to payments of principal due on the Maturity
Date, interest shall be payable at the Applicable Interest Rate or the Default Rate, as the case may be, through and including the day immediately preceding such Maturity Date. All amounts due pursuant to this Agreement and the other Loan Documents
shall be payable without setoff, counterclaim, defense or any other deduction whatsoever. 
  
 2.3.2 Payment on Maturity Date. Borrower shall pay to Lender on the Maturity Date the Outstanding Principal Balance, all accrued
and unpaid interest and all other amounts due hereunder and under the Note, the Mortgage and the other Loan Documents. 
  
 2.3.3 Late Payment Charge. If any principal, interest or any other sums due under the Loan Documents, excluding the payment of
principal due on the Maturity Date, is not paid by Borrower by the date on which it is due, Borrower shall pay to Lender upon demand an amount equal to the lesser of (a) two percent (2%) of such unpaid sum, and (b) the maximum amount permitted by
applicable law in order to defray the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such delinquent payment; provided, however, that with respect to two (2)
delinquent payments during the term of the Loan, as the same may be extended, no such late charge shall be payable provided such payment is made within five (5) days after the due date therefor and interest on such delinquent payments shall accrue
at the Applicable Interest Rate calculated from the date such payment was due. Any such amount shall be secured by the Mortgage and the other Loan Documents to the extent permitted by applicable law. 
  
 2.3.4 Method and Place of Payment. Except as
otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender not later than 1:00 P.M., New York City time, on the date when due and shall be made in lawful money of the United States
of America in immediately available funds at Lender’s office or as otherwise directed by Lender, and any funds received by Lender after such time shall, for all purposes hereof, be deemed to have been paid on the next succeeding Business Day.
Any prepayments required to be made hereunder or under the Cash Management Agreement shall be deemed to have been timely made for the purposes of this Section 2.3.4. 
  
 Section 2.4 Prepayments. 
  
 2.4.1 Voluntary Prepayments. (a) The Loan may be prepaid in whole only (but not in part) on any Payment Date, provided,
that, with respect to any such prepayment (i) the Borrower shall give Lender thirty (30) days’ prior written notice of the Borrower’s intention to 

  

 31 

 
prepay the Loan in full, (ii) subject to the terms of Section 2.4.1(b) below, all outstanding Other Loans together with all Other Borrower Obligations
shall simultaneously be repaid in full subject to and in accordance with the applicable Other Borrower Loan Documents and (iii) Borrower pays Lender, in addition to the Outstanding Principal Balance, (A) all interest as required herein; and (B) all
other Debt payable under this Agreement, the Note, and the other Loan Documents, including, but not limited to the Breakage Costs and all of Lender’s costs and expenses (including reasonable attorneys’ fees and disbursements) incurred by
Lender in connection with such prepayment. Borrower shall have the right to withdraw any prepayment notice at any time prior to such prepayment provided that Borrower shall pay to Lender all of Lender’s reasonable costs and expenses incurred in
connection with the receipt of such notices. 
  
 (b) Notwithstanding the terms of clause (ii) of Section 2.4.1(a) above, the Loan may be prepaid in whole only (but not in part) if the Property is sold in a bona fide arms-length, all-cash sale to a Person which is not a
Related Party, provided, that: 
  

	 	(i)	the Borrower complies with the terms of Section 2.4.1(a) above (excluding clause (ii) thereof) in respect of such prepayment; 

  

	 	(ii)	the amount of such prepayment shall equal the Adjusted Release Amount; 

  

	 	(iii)	no Release Default or Event of Default shall have occurred and be continuing hereunder or under any other Loan Document; 

  

	 	(iv)	after giving effect to such release (including the amount prepaid in Section 2.4.1(a) above), the Aggregate Debt Service Coverage Ratio of the remaining Other Properties
shall equal or exceed the greater of (i) the Aggregate Debt Service Coverage Ratio for the twelve (12) full calendar months immediately preceding the Closing Date, or (ii) the Aggregate Debt Service Coverage Ratio for the twelve (12) full calendar
months immediately preceding the release of the Property for which financial statements are available; 

  

	 	(v)	In the event Borrower is the owner of an Other Property, the Property shall be conveyed to a Person other than Borrower; 

  

	 	(vi)	The Adjusted Release Amount paid to Lender in connection with any such release shall be applied (i) first, to reduce the Debt to zero, and (ii) second, pro rata to the Other Loans,
immediately following such release. In connection with the release of the Mortgage and Second Mortgage as permitted by this Section 2.5, Borrower shall submit to Lender, not less than ten (10) days prior to the date on which Borrower intends to pay
the Loan in full, a release of Lien (and related Loan Documents), for the Property for execution by Lender. Such release shall be in a form appropriate in the jurisdiction in which the Property is located and that would be satisfactory to a prudent
lender; and 

  

 32 

	 	(vii)	Borrower shall have delivered to Lender an Officer’s Certificate in form reasonably acceptable to Lender certifying that no Release Default or Event of Default has occurred and
is continuing hereunder, under the Other Loan Documents or under the Other Borrower Loan Documents. 

  
 In the event any sums payable pursuant to Section 2.4 of the Other Loan Agreements are applied to reduce the Outstanding Principal Balance of this
Loan, no Prepayment Premium shall be payable in connection therewith. 
  
 2.4.2 Mandatory Prepayments. On the next occurring Payment Date following the date on which Lender actually receives any Net Proceeds, if Lender is not obligated to make such Net Proceeds available to Borrower
for Restoration, Borrower shall prepay, or authorize Lender to apply Net Proceeds as a prepayment of, the Outstanding Principal Balance in an amount equal to one hundred percent (100%) of such Net Proceeds. So long as no Event of Default has
occurred and is continuing, no Prepayment Premium shall be due in connection with any prepayment made pursuant to this Section 2.4.2 (such fee being expressly waived). 
  
 2.4.3 Prepayments After Default. If after the occurrence and during the continuance of an Event of
Default, payment of all or any part of the Debt is tendered by Borrower or otherwise recovered by Lender (including through application of any Reserve Funds), such tender or recovery shall be deemed (a) to have been made on the next occurring
Payment Date together with the Monthly Interest Payment, and (b) to be a voluntary prepayment by Borrower and Borrower shall pay, in addition to the Debt, an amount equal to the greater of (i) five percent (5%) of the Outstanding Principal Balance
or the portion thereof being prepaid or satisfied, and (ii) the Prepayment Premium, if any. 
  
 Section 2.5 Release of Property. (a) Except as set forth in this Section 2.5, no repayment or prepayment of all or any portion of the Loan
shall cause, give rise to a right to require, or otherwise result in, the release of the Liens of the Mortgage or the Second Mortgage. 
  
 (b) Lender shall promptly, upon the written request and at the sole cost and expense of Borrower, upon payment in full of all of the Debt
in accordance with the terms and provisions of the Note, this Agreement and the other Loan Documents and subject to and upon compliance with the terms of Section 2.4.1(b) hereof, release the Lien of the Mortgage and the Second Mortgage on the
Property. 
  
 (c) In connection with the release
of the Mortgage and the Second Mortgage as permitted by this Section 2.5, Borrower shall submit to Lender, not less than ten (10) days prior to the Payment Date on which Borrower intends to pay the Loan in full, releases of Lien (and related
Loan Documents), for the Property for execution by Lender. Such releases shall be in a form appropriate in the jurisdiction in which the Property is located and that would be satisfactory to a prudent lender. 
  

 33 

 Section 2.6 Cash Management. 
  
 2.6.1 Property Account. 
  
 (a) Borrower shall establish and maintain a segregated Eligible Account (the “Property
Account”) with the Property Account Bank maintained under Borrower’s control and direction during any period other than while a Sweep Event continues. Borrower (i) hereby grants to Lender a first priority security interest in the
Property Account and all deposits at any time contained therein and the proceeds thereof, and (ii) following and during any Sweep Event will take all actions necessary to maintain in favor of Lender a perfected first priority security interest in
the Property Account, including, without limitation, authorizing the filing of UCC-1 Financing Statements and continuations thereof. Borrower will not in any way alter or modify the Property Account and will notify Lender of the account number
thereof. Other than during a Sweep Event, Borrower shall have the sole right to make withdrawals from the Property Account and all reasonable costs and expenses for establishing and maintaining the Property Account shall be paid by Borrower. Upon
the occurrence and continuation of a Sweep Event, Lender shall have sole dominion and control over the Property Account and Borrower may not withdraw funds from the Property Account. 
  
 (b) Borrower shall, or shall cause Manager to, deposit all amounts received by Borrower or Manager
constituting Rents into the Property Account within one (1) Business Day after receipt thereof, provided, however, Borrower may retain, for its business operations at all times a sum not to exceed Twenty-Five Thousand and 00/100 ($25,000.00) in the
aggregate in the Operating Account (as defined in the Cash Management Agreement) and at the Property. In addition, on or before the Closing Date, Borrower shall, or shall cause Manager to, deliver irrevocable written instructions (each a
“Payment Direction Letter”) to each of the credit card companies or credit card clearing banks with which Borrower or Manager has entered into merchant’s agreements and to each account debtor of Borrower to deliver all Rents
payable with respect to the Property directly to the Property Account. 
  
 (c) During any Sweep Event, the Property Account shall be maintained under Lender’s sole control, dominion and direction. Pursuant to the terms of the Property Account Agreement, Property Account Bank shall
transfer to the Cash Management Account, in immediately available funds by federal wire all amounts on deposit in the Property Account each Business Day during a period that a Sweep Event exists. 
  
 (d) Upon request of Lender, Borrower shall deliver to Lender
such evidence as Lender may reasonably request to evidence that Borrower is complying with the provisions of Section 2.6.1. Without the prior written consent of Lender (not to be unreasonably withheld or delayed), neither Borrower nor its
agents (including, without limitation, Manager) or Affiliates shall (i) terminate, amend, revoke or modify any Payment Direction Letter in any manner or (ii) direct or cause any credit card company, credit card clearing bank or account debtor to pay
any amount in any manner other than as provided specifically in the related Payment Direction Letter. 
  
 (e) There are no accounts, other than the Property Account, maintained by Borrower or Manager or any other Person into which Rents from
the Property are initially 

  

 34 

 
deposited. So long as the Debt shall be outstanding, Borrower shall not and shall not permit any Person (other than Lender) to open any other such account
for the initial deposit of Rents from the Property prior to the deposit of such Rents in the Property Account. 
  
 (f) Borrower shall cause all payments made under the Interest Rate Cap Agreement or any Replacement Interest Rate Cap Agreement with
respect to the Loan to be deposited into the Property Account. 
  
 2.6.2 Intentionally Omitted. 
  
 2.6.3 Cash Management Account. 
  
 (a) Borrower shall cooperate with Lender and Servicer in connection with the establishment and maintenance of a segregated Eligible Account (the “Cash Management Account”) to be held by Servicer in
trust for the benefit of Lender, which Cash Management Account shall be under the sole dominion and control of Lender. The Cash Management Account shall be entitled “Column Financial, Inc., as Lender, pursuant to Loan Agreement dated as of June
21, 2004 - Cash Management Account.” Borrower hereby (i) grants to Lender a first priority security interest in the Cash Management Account and all deposits at any time contained therein and the proceeds thereof, and (ii) will take all actions
necessary to maintain in favor of Lender a perfected first priority security interest in the Cash Management Account, including, without limitation, authorizing the filing of UCC-1 Financing Statements and continuations thereof. Borrower will not in
any way alter or modify the Cash Management Account and will notify Lender of the account number thereof. Lender and Servicer shall have the sole right to make withdrawals from the Cash Management Account and all costs and expenses for establishing
and maintaining the Cash Management Account shall be paid by Borrower. 
  
 (b) After the occurrence and during the continuance of a Sweep Event, on each Payment Date (or, if such Payment Date is not a Business Day, on the immediately preceding Business Day) all funds on deposit in the Cash
Management Account shall be applied by Lender to the payment of the following items in the order indicated: 
  

	 	(i)	First, payments in respect of the Tax and Insurance Escrow Funds in accordance with the terms and conditions of Section 7.2 hereof; 

  

	 	(ii)	Second, payment of the Monthly Interest Payment computed at the Applicable Interest Rate; 

  

	 	(iii)	Third, payments to the FF&E Reserve Funds in accordance with the terms and conditions of Section 7.3 hereof; 

  

	 	(iv)	Fourth, payment to Lender of any other amounts then due and payable under the Loan Documents; 

  

	 	(v)	 Fifth, to the extent that, in respect of any Other Loan, there is, or Lender reasonably determines that there will be, a shortfall (each an “Other Loan
Shortfall”) during the relevant calendar month in the items referred to (x) in clauses (i)-(vi) of Section 2.6.3(b) of the 

  

 35 

	 	 
applicable Other Loan Agreements, funds sufficient to pay such Other Loan Shortfall; 

  

	 	(vi)	Sixth, funds sufficient to pay Operating Expenses for the next calendar month pursuant to the Approved Annual Budget, other than expenses paid, or to be paid to, an Affiliated
Manager; 

  

	 	(vii)	Seventh, funds sufficient to pay Extraordinary Expenses approved by Lender and which are then due and payable, if any; 

  

	 	(viii)	Eighth, funds sufficient to pay Operating Expenses paid, or to be paid to, an Affiliated Manager for the next calendar month pursuant to the Approved Annual Budget; and

  

	 	(ix)	Lastly, and so long as an Event of Default does not exist, payment of any excess amounts (“Excess Cash Flow”) to Borrower. 

  
 (c) The insufficiency of funds on deposit in the Cash
Management Account shall not relieve Borrower of the obligation to make any payments, as and when due pursuant to this Agreement and the other Loan Documents, and such obligations shall be separate and independent, and not conditioned on any event
or circumstance whatsoever. 
  
 (d) All funds on
deposit in the Cash Management Account following the occurrence of an Event of Default may be applied by Lender in such order and priority as Lender shall determine in its sole discretion. 
  
 2.6.4 Payments Received Under the Cash Management
Agreement. Notwithstanding anything to the contrary contained in this Agreement and the other Loan Documents, and provided no Event of Default has occurred and is continuing, Borrower’s obligations with respect to the monthly payment
of Debt Service and amounts due for the Tax and Insurance Escrow Funds, FF&E Reserve Funds, Required Repair Funds and any other payment reserves established pursuant to this Agreement or any other Loan Document shall be deemed satisfied to the
extent sufficient amounts are deposited in the Cash Management Account to satisfy such obligations on the dates each such payment is required, regardless of whether any of such amounts are so applied by Lender. 
  
 2.6.5 Application After Event of Default.
Notwithstanding anything to the contrary contained in this Section 2.6, upon the occurrence of an Event of Default, Lender, at its option, may withdraw the Reserve Funds and any other funds of Borrower then in the possession of Lender,
Servicer or Property Account Bank and apply such funds to the items for which the Reserve Funds were established or to the payment of the Obligations and the Other Borrower Obligations in such order, proportion and priority as Lender may determine
in its sole discretion. Lender’s right to withdraw and apply any of the foregoing funds shall be in addition to all other rights and remedies provided to Lender under the Loan Documents. 
  
 2.6.6 Quarterly Net Cash Flow Tests. In order to
ascertain whether or not a Net Cash Flow Failure has occurred or has terminated, Lender shall determine the Net Cash Flow as of the last day of each calendar quarter throughout the term of the Loan (each, a “Quarterly Net 

  

 36 

 
Cash Flow Test”), beginning September, 2004, each of which Quarterly Net Cash Flow Tests and the determinations made with respect thereto shall
be based on the information delivered in accordance with Section 5.1.11 hereof, together with any other evidence which Lender may reasonably require to substantiate or explain the calculation of Net Cash Flow. Notwithstanding the foregoing,
if the information required under Section 5.1.11 hereof is not delivered, the Net Cash Flow shall be determined in Lender’s sole discretion. 
  
 Section 2.7 Extension Options 
  
 2.7.1 First Extension Option. Borrower shall have the right to extend the Initial Maturity Date to July 9, 2007 (the period
commencing on the first (1st) day following the Initial Maturity Date and ending on July 9, 2007 being referred to herein as the “First Extension Term”), provided, that: (a) Borrower shall have given Lender its written
notice of such extension (an “Extension Notice”) not less than two (2) months nor more than six (6) months prior to the Initial Maturity Date; (b) the Interest Rate Cap shall be in effect as of the date of the commencement of the
First Extension Term (the “First Extension Commencement Date”) for the term of the Loan as extended and assigned to Lender; (c) no Event of Default shall have occurred and be continuing at the time of the delivery of the Extension
Notice with respect to the First Extension Term or on the First Extension Commencement Date; and (d) Borrower shall have delivered to Lender an Officer’s Certificate in form reasonably acceptable to Lender certifying whether or not an Event of
Default has occurred and is continuing, and if so, describing such Event of Default. 
  
 2.7.2 Second Extension Option. In the event that Borrower exercises the extension option for the First Extension Term, Borrower
shall have the right to further extend the Maturity Date to July 9, 2008 (the period commencing on the first (1st) day following the First Extension Term and ending on July 9, 2008 being referred to herein as the “Second Extension
Term”), provided, that: (a) Borrower shall have given Lender an Extension Notice not less than two (2) months nor more than six (6) months prior to the last day of the First Extension Term; (b) the Interest Rate Cap shall be
in effect as of the date of the Commencement of the Second Extension Term (the “Second Extension Commencement Date”) for the term of the Loan as extended and assigned to Lender; (c) no Event of Default shall have occurred and be
continuing at the time of the delivery of the Extension Notice with respect to the Second Extension Term or on the Second Extension Commencement Date; and (d) Borrower shall have delivered to Lender an Officer’s Certificate in form reasonably
acceptable to Lender certifying whether or not an Event of Default has occurred and is continuing, and if so, describing such Event of Default. 
  
 2.7.3 Third Extension Option. In the event that Borrower exercises the extension option for the Second Extension Term, Borrower
shall have the right to further extend the Maturity Date to July 9, 2009 (the period commencing on the first (1st) day following the Second Extension Term and ending on July 9, 2009 being referred to herein as the “Third Extension
Term”), provided, that: (a) Borrower shall have given Lender an Extension Notice not less than two (2) months nor more than six (6) months prior to the last day of the Second Extension Term; (b) the Interest Rate Cap shall be
in effect as of the date of the Commencement of the Third Extension Term (the “Third Extension Commencement Date”) for the term of the Loan as extended and assigned to Lender; (c) no Event of Default shall have occurred and
be continuing at the time of the delivery of the Extension Notice with respect to the Third Extension 

  

 37 

 
Term or on the Third Extension Commencement Date; and (d) Borrower shall have delivered to Lender an Officer’s Certificate in form reasonably acceptable
to Lender certifying whether or not an Event of Default has occurred and is continuing, and if so, describing such Event of Default. 
  
 Section 2.8 Substitution. Notwithstanding anything to the contrary set forth in Section 2.4 hereof, Borrower may substitute (each a
“Substitution”) a property (the “Substitute Property”) for the Property upon and subject to the following terms and conditions: 
  
 (a) There shall be no more than one (1) Substitution in the
aggregate with respect to the Property and the other Properties effected during the term of the Loan. 
  
 (b) Lender shall have received at least sixty (60) days prior written notice requesting the Substitution and identifying the Substitute
Property. 
  
 (c) The Substitute Property shall
be a fee parcel and used and operated as a hotel of like kind and quality as the hotel operated on the Property as of the Closing Date and shall have been completed lien-free and paid for in full in a good and workmanlike manner and in compliance,
in all material respects, with all applicable Legal Requirements. 
  
 (d) On the Substitution Date, the Loan (in such capacity the “Replaced Loan”) secured by the Mortgage and Second Mortgage encumbering the Substitute Property shall be repaid in full and,
subject to the terms hereof, Lender shall make a new Loan (simultaneously with the full repayment of the Replaced Loan) in an amount equal to the then principal balance of the Replaced Loan (the “Substitution Loan”) to
the owner (which shall qualify as a Qualified Borrower) of the Substitute Property (the “Substitute Borrower”). Notwithstanding the foregoing, at Lender’s election, the foregoing may be affected by the Substitute
Borrower assuming the Replaced Loan (in which event the Replaced Loan shall constitute a Substitution Loan) and the contemporaneous release of the applicable Borrower (the “Replaced Borrower”) from its obligations in respect of the
Replaced Loan. The Substitute Borrower shall execute and deliver a Joinder Acknowledgment and Substitution Loan shall constitute a Loan hereunder. 
  
 (e) (i) The appraised fair market value of the Substitute Property shall be equal to or greater than the original appraised value of the
Property as set forth in the appraisal delivered to Lender in connection with the closing of the Loan. The fair market value of the Property and Substitute Property shall be determined by a firm of appraisers selected by Borrower and approved by
Lender (which approval shall not be unreasonably withheld, delayed or conditioned) and based on an appraisal, dated not more than ninety (90) days prior to the Substitution Date reasonably satisfactory to Lender. All costs of such appraisals shall
be paid by Borrower on or prior to the Substitution Date. 
  

	 	(ii)	 The actual Net Cash Flow relating to the Substitute Property (based upon the trailing twelve (12) month financial results or such shorter period, as Lender
reasonably deems appropriate, if the Substitute Property has been open for business for less than one year) shall equal or exceed the actual Net Cash Flow relating (based upon the trailing twelve (12) month financial results or such 

  

 38 

	 	 
shorter period, as Lender reasonably deems appropriate, if the Property has been open for business for less than one year) to the Property.

  
 (f) Lender shall have
received from Substitute Borrower and such other Persons as Lender deems reasonably appropriate a Mortgage, a Second Mortgage, a Loan Agreement, a Note, an Equity Pledge Agreement, all other Loan Documents and Junior Lender Security Documents
executed by Borrower, Guarantor and/or any other Person (all of which shall be substantially the form of the Loan Documents executed in respect of the Loan with such changes thereto as Lender reasonably deems appropriate to reflect the circumstances
of the Substitution) (collectively, the “Substitute Loan Documents”). 
  
 (g) The Substitute Loan Documents, financing statements, and other instruments required to perfect the liens in the collateral
contemplated thereby required by Lender shall have been recorded, registered and filed (as applicable) in such manner as may be required by law to create a valid, perfected lien and security interest with respect to the Substitute Property and the
personal property related thereto. 
  
 (h) The
liens created by the Substitute Loan Documents shall be first liens and prior security interests on the Substitute Property and the personal property related thereto (other than the Second Mortgage), subject only to such exceptions as Lender shall
approve in its sole discretion. 
  
 (i) Upon the
closing of the Substitute Property (the “Substitution Date”), the Borrower shall have good and marketable title to the Substitute Property, and good and valid title to any personal property located thereon or used in connection
therewith, in each case satisfactory to the Lender. 
  
 (j) Lender shall, at Borrower’s sole cost and expense, receive and approve all Additional Due Diligence Materials. 
  
 (k) Lender shall have received (x) a confirmation of all Loan Documents executed by Guarantor and a consent to such Substitution by
Guarantor, (y) a confirmation of all guaranties executed by the Other Borrowers and all pledges executed by the pledgors thereof and a consent to such Substitution by the Other Borrowers and pledgors, and (z) such other instruments and agreements
and such certificates and opinions of counsel, in form and substance reasonably satisfactory to Lender in connection with such Substitution as it may reasonably request. 
  
 (l) The Substitute Property shall be located within the continental United States. 
  
 (m) No Default or Event of Default shall have occurred and
be continuing hereunder, under any other Loan Document or under the Other Borrower Loan Documents on the Substitution Date, and Borrower shall have delivered to Lender an Officer’s Certificate in form reasonably acceptable to Lender certifying
to same. 
  

 39 

 (n) Borrower shall pay all reasonable out-of-pocket costs and expenses incurred in
connection with any such Substitution and the reasonable out-of-pocket fees and expenses incurred by Lender and Servicer in connection therewith. Without limiting the generality of the foregoing, Borrower shall, in connection with, and as a
condition to, a Substitution, pay the reasonable fees and expenses of Lender’s attorneys, the reasonable fees and expenses of Lender’s engineers, appraisers, construction consultants, insurance consultants and other due diligence
consultants and contractors, recording charges, title insurance charges, and stamp and/or mortgage or similar taxes, transfer taxes. 
  
 (o) Lender shall have received such assurances and confirmations from the Rating Agencies that the Substitution shall not result in a
downgrading, withdrawal or qualification of any rating assigned or the preliminary or indicative rating to be assigned to any securities issued in connection with any Securitization. 
  
 (p) Lender shall be satisfied that the Substitution shall not constitute a preference or fraudulent
conveyance or that the Substitution is structured in such a manner as to avoid said risks. 
  
 (q) A Net Cash Flow Failure shall not be in effect on the Substitution Date. 
  
 (r) On or before the Substitution Date, all conditions
precedent with respect to the Replaced Loan shall be satisfied with respect to the Substitute Loan, including, without limitation, delivery of Title Policies with respect to the Substitute Property. 
  
 ARTICLE 3 
  
 CONDITIONS PRECEDENT 
  

Section 3.1 Conditions Precedent to Closing. The obligation of Lender to make the Loan hereunder is subject to the fulfillment by Borrower, or
waiver by Lender, of the following conditions precedent no later than the Closing Date: 
  
 3.1.1 Representations and Warranties; Compliance with Conditions. The representations and warranties of Borrower contained in this
Agreement and the other Loan Documents shall be true and correct in all material respects on and as of the Closing Date with the same effect as if made on and as of such date, and no Default or Event of Default shall have occurred and be continuing;
and Borrower shall be in compliance in all material respects with all terms and conditions set forth in this Agreement and in each other Loan Document on its part to be observed or performed. 
  
 3.1.2 Loan Agreement and Note. Lender shall have
received a copy of this Agreement and the Note, in each case, duly executed and delivered on behalf of Borrower. 
  
 3.1.3 Delivery of Loan Documents; Title Insurance; Reports; Leases. 
  
 (a) Mortgage, Assignment of Leases. Lender shall have received from Borrower fully executed and
acknowledged counterparts of the Mortgage, the Second Mortgage and the Assignment of Leases and evidence that counterparts of the Mortgage, the Second 

  

 40 

 
Mortgage and Assignment of Leases have been delivered to the Title Company for recording, in the reasonable judgment of Lender, so as to effectively create
upon such recording valid and enforceable Liens upon the Property, of the requisite priority, in favor of Lender (or such trustee as may be required or desired under local law), subject only to the Permitted Encumbrances and such other Liens as are
permitted pursuant to the Loan Documents. Lender shall have also received from Borrower fully executed counterparts of the other Loan Documents. 
  
 (b) Title Insurance. Lender shall have received Title Insurance Policies with respect to the Mortgage and the Second Mortgage
issued by the Title Company and dated as of the Closing Date, with reinsurance and direct access agreements acceptable to Lender. Such Title Insurance Policies shall (i) provide coverage in amounts satisfactory to Lender, (ii) insure Lender that the
Mortgage and the Second Mortgage, as applicable, creates a valid lien on the Property encumbered thereby of the requisite priority, free and clear of all exceptions from coverage other than Permitted Encumbrances and standard exceptions and
exclusions from coverage (as modified by the terms of any endorsements), (iii) contain such endorsements and affirmative coverages as Lender may reasonably request, (iv) name Lender and its successors and assigns as the insured. The Title Insurance
Policies shall be assignable, to the extent permitted under applicable state law. Lender also shall have received evidence that all premiums in respect of such Title Insurance Policies have been paid, and (v) with respect to the Second Mortgage,
tie-in and first loss endorsements to the extent available in the State where the Property is located. 
  
 (c) Survey. Lender shall have received a current Survey, certified to the title company and Lender and their successors and
assigns, in form and content satisfactory to Lender and prepared by a professional and properly licensed land surveyor satisfactory to Lender in accordance with the Accuracy Standards for ALTA/ACSM Land Title Surveys as adopted by ALTA, American
Congress on Surveying & Mapping and National Society of Professional Surveyors in 1999. The Survey shall reflect the same legal description contained in the Title Insurance Policy and shall include, among other things, a metes and bounds
description of the real property comprising part of the Property reasonably satisfactory to Lender. The surveyor’s seal shall be affixed to the Survey and the surveyor shall provide a certification for the Survey in form and substance
acceptable to Lender. 
  
 (d) Insurance.
Lender shall have received valid certificates of insurance for the Policies required hereunder, satisfactory to Lender in its sole discretion, and evidence of the payment of all Insurance Premiums payable for the existing policy period. 

 
 (e) Environmental Reports. Lender shall have
received a Phase I environmental report (and, if recommended by the Phase I environmental report, a Phase II environmental report) in respect of the Property, satisfactory in form and substance to Lender. 
  
 (f) Zoning. Lender shall have received, at
Lender’s option, either (i) (A) letters or other evidence with respect to the Property from the appropriate municipal authorities (or other Persons) concerning applicable zoning and building laws, or (B) an ALTA 3.1 zoning endorsement for the
Title Insurance Policy, or (ii) a zoning opinion letter, in each case in substance reasonably satisfactory to Lender. 
  

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 (g) Encumbrances. Borrower shall have taken or caused to be taken such actions in
such a manner so that Lender has a valid and perfected first priority Lien as of the Closing Date with respect to the Mortgage, subject only to applicable Permitted Encumbrances and such other Liens as are permitted pursuant to the Loan Documents,
and Lender shall have received satisfactory evidence thereof. 
  
 3.1.4 Related Documents. Each additional document not specifically referenced herein, but relating to the transactions contemplated herein, shall be in form and substance reasonably satisfactory to Lender, and
shall have been duly authorized, executed and delivered by all parties thereto and Lender shall have received and approved certified copies thereof. 
  
 3.1.5 Delivery of Organizational Documents. (a) Borrower shall deliver or cause to be delivered to Lender copies certified by
Borrower of all organizational documentation related to Borrower and/or its formation, structure, existence, good standing and/or qualification to do business, as Lender may request in its sole discretion, including, without limitation, good
standing certificates, qualifications to do business in the appropriate jurisdictions, resolutions authorizing the entering into of the Loan and incumbency certificates as may be requested by Lender. 
  
 (b) Borrower shall deliver or cause to be delivered to
Lender copies certified by Borrower of all organizational documentation related to Principal, Guarantor, and other members and/or partners of Borrower, and/or the formation, structure, existence, good standing and/or qualification to do business of
any of the foregoing, as Lender may request in its sole discretion, including, without limitation, good standing certificates, qualifications to do business in the appropriate jurisdictions, authorizing resolutions and incumbency certificates as may
be requested by Lender. 
  
 3.1.6 Opinions of
Borrower’s Counsel. Lender shall have received opinions from Borrower’s counsel with respect to non-consolidation and the due execution, authority, enforceability of the Loan Documents and such other matters as Lender may require, all
such opinions in form, scope and substance satisfactory to Lender and Lender’s counsel in their sole reasonable discretion. 
  
 3.1.7 Intentionally Omitted. 
  
 3.1.8 Basic Carrying Costs. Borrower shall have paid all Basic Carrying Costs relating to the Property which are in arrears,
including without limitation, (a) accrued but unpaid Insurance Premiums, (b) currently due Taxes (including any in arrears) and (c) currently due Other Charges, which amounts shall be funded with proceeds of the Loan. 
  
 3.1.9 Completion of Proceedings. All corporate and
other proceedings taken or to be taken in connection with the transactions contemplated by this Agreement and the other Loan Documents and all documents incidental thereto shall be satisfactory in form and substance to Lender, and Lender shall have
received all such counterpart originals or certified copies of such documents as Lender may reasonably request. 
  

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 3.1.10 Payments. All payments, deposits or escrows required to be made or
established by Borrower under this Agreement, the Note and the other Loan Documents on or before the Closing Date shall have been paid. 
  
 3.1.11 Intentionally Omitted. 
  
 3.1.12 Transaction Costs. Borrower shall have paid or reimbursed Lender for all title insurance premiums, recording and filing
fees, costs of environmental reports, Physical Conditions Reports, appraisals and other reports, the fees and costs of Lender’s counsel and all other third party out-of-pocket expenses reasonably incurred in connection with the origination of
the Loan. 
  
 3.1.13 Leases and Rent Roll.
Lender shall have received copies of all Leases and certified copies of any Leases as requested by Lender. Lender shall have received a current certified rent roll of the Property, reasonably satisfactory in form and substance to Lender. 

 
 3.1.14 Tax Lot. Lender shall have received
evidence that the Property constitutes one (1) or more separate tax lots, which evidence shall be satisfactory in form and substance to Lender. 
  
 3.1.15 Physical Conditions Report. Lender shall have received a Physical Conditions Report, which report shall be satisfactory in
form and substance to Lender. 
  
 3.1.16
Management Agreement. Lender shall have received a copy of the Management Agreement, which shall be reasonably satisfactory in form and substance to Lender. 
  
 3.1.17 Appraisal. Lender shall have received an appraisal of the Property, which shall be
satisfactory in form and substance to Lender. 
  
 3.1.18 Financial Statements. Lender shall have received a balance sheet with respect to the Property for the two (2) most recent Fiscal Years (audited, if available), each in form and substance satisfactory to Lender. 
  
 3.1.19 Further Documents. Lender or its counsel shall
have received such other and further approvals, opinions, documents and information as Lender or its counsel may have reasonably requested including the Loan Documents in form and substance satisfactory to Lender and its counsel. 
  
 3.1.20 Other Loans. All conditions precedent to the
closing of each of the Other Loans shall have been satisfied, as determined by Lender in its sole discretion, and each Other Loan shall have closed or shall close simultaneously with the closing of the Loan. 
  

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 ARTICLE 4 
  

REPRESENTATIONS AND WARRANTIES 
  
 Section 4.1 Borrower Representations. Borrower represents and warrants as of the date hereof and as of the Closing Date that: 
  
 4.1.1 Organization. Borrower has been duly organized
and is validly existing and in good standing with requisite power and authority to own its properties and to transact the businesses in which it is now engaged. Borrower is duly qualified to do business and is in good standing in each jurisdiction
where it is required to be so qualified in connection with its properties, businesses and operations. Borrower possesses all rights, licenses, permits and authorizations, governmental or otherwise, necessary to entitle it to own its properties and
to transact the businesses in which it is now engaged, and the sole business of Borrower is the ownership, management and operation of the Property. The ownership interests of Borrower are as set forth on the organizational chart attached hereto as
Schedule III. 
  
 4.1.2
Proceedings. Borrower has taken all necessary action to authorize the execution, delivery and performance of this Agreement and the other Loan Documents. This Agreement and the other Loan Documents have been duly executed and delivered by or
on behalf of Borrower and constitute the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, subject only to applicable bankruptcy, insolvency and similar laws affecting rights of
creditors generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 
  
 4.1.3 No Conflicts. The execution, delivery and performance of this Agreement and the other Loan
Documents by any Significant Party, as applicable, will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance (other
than pursuant to the Loan Documents) upon any of the property or assets of Borrower pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, partnership agreement, management agreement or other agreement or instrument to
which Borrower is a party or by which any of Borrower’s property or assets is subject, nor will such action result in any violation of the provisions of any statute or any order, rule or regulation of any Governmental Authority having
jurisdiction over Borrower or any of Borrower’s properties or assets, and any consent, approval, authorization, order, registration or qualification of or with any such Governmental Authority required for the execution, delivery and performance
by any Significant Party, as applicable, of this Agreement or any other Loan Documents has been obtained and is in full force and effect. 
  
 4.1.4 Litigation. There are no actions, suits or proceedings at law or in equity by or before any Governmental Authority or other
agency now pending or, to Borrower’s knowledge, threatened against or affecting any Significant Party or the Property, which actions, suits or proceedings, if determined against such Significant Party or the Property, are reasonably likely to
have a Material Adverse Effect. 
  

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 4.1.5 Agreements. Borrower is not a party to any agreement or instrument or
subject to any restriction which might materially and adversely affect Borrower or the Property, or Borrower’s business, properties or assets, operations or condition, financial or otherwise. Borrower is not in default in any material respect
in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument to which it is a party or by which Borrower or the Property are bound. Borrower has no material financial
obligation under any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which Borrower is a party or by which Borrower or the Property is otherwise bound, other than (a) any obligations incurred in the ordinary
course of the operation of the Property as permitted pursuant to clause (s) of the definition of “Special Purpose Entity” set forth in Section 1.1 hereof, (b) the obligations under the Loan Documents. 
  
 4.1.6 Title. (a) Borrower has good, marketable and
insurable fee title to the Property, free and clear of all Liens whatsoever except the Permitted Encumbrances, such other Liens as are permitted pursuant to the Loan Documents and the Liens created by the Loan Documents. The Permitted Encumbrances
in the aggregate do not materially and adversely affect the value, operation or use of the Property (as currently used) or Borrower’s ability to repay the Loan. The Mortgage and the Assignment of Leases, when properly recorded in the
appropriate records, together with any Uniform Commercial Code financing statements required to be filed in connection therewith, will create (a) a valid, perfected first priority lien on the Property, subject only to Permitted Encumbrances and the
Liens created by the Loan Documents, and (b) perfected security interests in and to, and perfected collateral assignments of, all personalty (including the Leases), all in accordance with the terms thereof, in each case subject only to any
applicable Permitted Encumbrances, such other Liens as are permitted pursuant to the Loan Documents and the Liens created by the Loan Documents. There are no claims for payment for work, labor or materials affecting the Property which are or may
become a Lien prior to, or of equal priority with, the Liens created by the Loan Documents. 
  
 (b) The Second Mortgage, when properly recorded in the appropriate public records, together with any Uniform Commercial Code financing
statements required to be filed in connection therewith, will create (i) a valid, perfected second priority Lien on the Property, subject only to Permitted Encumbrances and the Lien of the Mortgage and (ii) perfected security interests in and to,
and perfected collateral assignments of, all Personal Property (including the Leases), all in accordance with the terms thereof, in each case subject only to the Mortgage and any applicable Permitted Encumbrances to the extent that perfection occurs
through the recording of a Mortgage or the filing of a financing statement. 
  
 4.1.7 Solvency. Borrower has (a) not entered into the transaction contemplated by this Agreement or executed the Note, this Agreement or any other Loan Documents with the actual intent to hinder, delay or
defraud any creditor and (b) received reasonably equivalent value in exchange for its obligations under such Loan Documents. After giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following
the making of the Loan, exceed Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed and contingent liabilities. The fair saleable value of Borrower’s assets is and will, immediately following
the making of the Loan, be greater than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on its debts as such debts become absolute and matured. Borrower’s assets do not and, immediately 

  

 45 

 
following the making of the Loan will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted.
Borrower does not intend to, and does not believe that it will, incur debts and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such debts and liabilities as they mature (taking into account the timing
and amounts of cash to be received by Borrower and the amounts to be payable on or in respect of the obligations of Borrower). No petition in bankruptcy has been filed against Borrower or any of its constituent Persons, and neither Borrower nor any
of its constituent Persons has ever made an assignment for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. Neither Borrower nor any of its constituent Persons are contemplating either the filing of a
petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of Borrower’s assets or properties, and Borrower has no knowledge of any Person contemplating the filing of any such petition
against it or any of its constituent Persons. 
  
 4.1.8 Full and Accurate Disclosure. No statement of fact made by Borrower in this Agreement or in any of the other Loan Documents contains any untrue statement of a material fact or omits to state any material fact necessary to make
statements contained herein or therein not misleading. There is no material fact presently known to Borrower which has not been disclosed to Lender which adversely affects, nor as far as Borrower can foresee, might adversely affect, the Property or
the business, operations or condition (financial or otherwise) of Borrower. 
  
 4.1.9 No Plan Assets. Borrower is not an “employee benefit plan,” as defined in Section 3(3) of ERISA, subject to Title I of ERISA, and none of the assets of Borrower constitutes or will constitute
“plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101. In addition, (a) Borrower is not a “governmental plan” within the meaning of Section 3(32) of ERISA, and (b) transactions by or with
Borrower are not subject to any state statute regulating investments of, or fiduciary obligations with respect to, governmental plans similar to the provisions of Section 406 of ERISA or Section 4975 of the Code currently in effect, which prohibit
or otherwise restrict the transactions contemplated by this Agreement. 
  
 4.1.10 Compliance. Borrower and the Property (including the use thereof) comply in all material respects with all applicable Legal Requirements, including, without limitation, building and zoning ordinances and
codes. Borrower is not in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority. There has not been committed by Borrower, to Borrower’s knowledge, or any other Person in occupancy of or involved
with the operation or use of the Property any act or omission affording any Governmental Authority the right of forfeiture as against the Property or any part thereof or any monies paid in performance of Borrower’s obligations under any of the
Loan Documents. 
  
 4.1.11 Financial
Information. All financial data, including, without limitation, the statements of cash flow and income and operating expense, that have been delivered to Lender in connection with the Loan (i) fairly and accurately represent the financial
condition of the Significant Parties and the Property as of the date of such reports, and (iii) to the extent audited by an independent certified public accounting firm, have been prepared in accordance with GAAP throughout the periods covered,
except as disclosed therein. Except for Permitted Encumbrances, Borrower does not have any contingent liabilities, liabilities for taxes, unusual 

  

 46 

 
forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments that are known to Borrower and reasonably likely to
have a Material Adverse Effect on the Property or the operation thereof as a hotel, except as referred to or reflected in said financial statements. Since the date of such financial statements, there has been no material adverse change in the
financial condition, operation or business of Borrower from that set forth in said financial statements. 
  
 4.1.12 Condemnation. No Condemnation or other proceeding has been commenced or, to Borrower’s knowledge, is threatened or
contemplated with respect to all or any portion of the Property or for the relocation of any roadway providing access to the Property, except as set forth on Schedule IV. 
  
 4.1.13 Federal Reserve Regulations. No part of the proceeds of the Loan will be used for the purpose
of purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose which would be inconsistent with such Regulation U or any other Regulations
of such Board of Governors, or for any purposes prohibited by any Legal Requirements or by the terms and conditions of this Agreement or the other Loan Documents. 
  
 4.1.14 Utilities and Public Access. The Property has rights of access to public ways and is served by
water, sewer, sanitary sewer and storm drain facilities adequate to service the Property for its intended uses. All public utilities necessary or convenient to the full use and enjoyment of the Property are located either in the public right-of-way
abutting the Property (which are connected so as to serve the Property without passing over other property) or in recorded easements serving the Property and such easements are set forth in and insured by the Title Insurance Policy. All roads
necessary for the use of the Property for its current purpose have been completed and dedicated to public use and accepted by all Governmental Authorities. 
  
 4.1.15 Not a Foreign Person. Borrower is not a “foreign person” within the meaning of §1445(f)(3) of the Code.

  
 4.1.16 Separate Lots. The Property is
comprised of one (1) or more parcels which constitute a separate tax lot or lots and does not constitute a portion of any other tax lot not a part of the Property. 
  
 4.1.17 Assessments. To Borrower’s knowledge, there are (a) no pending or proposed special or
other assessments for public improvements or otherwise affecting the Property, and (ii) no contemplated improvements to the Property that may result in such special or other assessments. 
  
 4.1.18 Enforceability. The Loan Documents are not subject to any right of rescission, set-off,
counterclaim or defense by Borrower, Principal or Guarantor, including the defense of usury, nor would the operation of any of the terms of the Loan Documents, or the exercise of any right thereunder, render the Loan Documents unenforceable (subject
to principles of equity and bankruptcy, insolvency and other laws generally affecting creditors’ rights and the enforcement of debtors’ obligations), and Borrower, Principal and Guarantor have not asserted any right of rescission, set-off,
counterclaim or defense with respect thereto. 
  

 47 

 4.1.19 No Prior Assignment. There are no prior assignments of the Leases or any
portion of the Rents due and payable or to become due and payable which are presently outstanding. 
  
 4.1.20 Insurance. Borrower has obtained and has delivered to Lender valid certificates of insurance evidencing the Policies along
with evidence satisfactory to Lender of the payment in full of all premiums required thereunder. No claims have been made under any such Policies, and no Person, including Borrower, has done, by act or omission, anything which would impair the
coverage of any such Policies. Borrower shall use commercially reasonable efforts to obtain and deliver to Lender certified copies of the Policies as soon as practicable after the date of this Agreement. 
  
 4.1.21 Use of Property. The Property is used
exclusively as a hotel and other appurtenant and related uses. 
  
 4.1.22 Certificate of Occupancy; Licenses. All material certifications, permits, licenses and approvals, including without limitation, certificates of completion and occupancy permits, required for the legal
use, occupancy and/or operation of the Property as a hotel (collectively, the “Licenses”), have been obtained and are in full force and effect. Borrower shall keep and maintain all Licenses necessary for the operation
of the Property as a hotel. The use being made of the Property is in conformity in all material respects with the certificate of occupancy issued for the Property. 
  
 4.1.23 Flood Zone. None of the Improvements on the Property are located in an area identified by the
Federal Emergency Management Agency as an area having special flood hazards or, if so located, the flood insurance required pursuant to Section 6.1(a)(i) hereof is in full force and effect with respect to the Property. 
  
 4.1.24 Physical Condition. The Property, including,
without limitation, all buildings, improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment, elevators, exterior sidings and doors,
landscaping, irrigation systems and all structural components are in good condition, order and repair in all material respects. Other than as disclosed in the “Engineering Report,” there exists no structural or other material defects or
damages in the Property, whether latent or otherwise, and Borrower has not received notice from any insurance company or bonding company of any defects or inadequacies in the Property, or any part thereof, which would adversely affect the
insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond. 
  
 4.1.25 Boundaries. All of the Improvements which were included in determining the appraised value of
the Property lie wholly within the boundaries and building restriction lines of the Property, and no improvements on adjoining properties encroach upon the Property, and no easements or other encumbrances upon the Property encroach upon any of the
Improvements, so as to affect the value or marketability of the Property except those which are insured against by the Title Insurance Policy. 
  

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 4.1.26 Leases. The Property is not subject to any Leases other than the Leases
described in Schedule I attached hereto and made a part hereof. No Person has any possessory interest in the Property or right to occupy the same except under and pursuant to the provisions of the Leases or as hotel guests, customers or
invitees in the ordinary course of business at the Property. The current Leases are in full force and effect and there are no defaults thereunder by either party and there are no conditions that, with the passage of time or the giving of notice, or
both, would constitute defaults thereunder. The copies of the Leases delivered to Lender are true and complete, and there are no oral agreements with Borrower with respect thereto; (Lender acknowledges and agrees that Borrower has no obligation to
deliver copies of Leases under 5,000 square feet unless specifically so requested by Lender). No Rent (including security deposits) has been paid more than one (1) month in advance of its due date. All work to be performed by Borrower under each
Lease has been performed as required in such Lease and has been accepted by the applicable tenant, and any payments, free rent, partial rent, rebate of rent or other payments, credits, allowances or abatements required to be given by Borrower to any
tenant has already been received by such tenant. There has been no prior sale, transfer or assignment, hypothecation or pledge of any Lease or of the Rents received therein which is still in effect. No tenant listed on Schedule I has assigned
its Lease or sublet all or any portion of the premises demised thereby, no such tenant holds its leased premises under assignment or sublease, nor does anyone except such tenant and its employees occupy such leased premises. No tenant under any
Lease has a right or option pursuant to such Lease or otherwise to purchase all or any part of the Property of which the leased premises are a part. No tenant under any Lease has any right or option for additional space in the Improvements.

  
 4.1.27 Survey. The Survey for the
Property delivered to Lender in connection with this Agreement has been prepared in accordance with the provisions of Section 3.1.3(c) hereof, and does not fail to reflect any material matter affecting the Property or the title thereto.

  
 4.1.28 Principal Place of Business; State
of Organization. Borrower’s principal place of business as of the date hereof is the address set forth in the introductory paragraph of this Agreement. The Borrower is organized under the laws of the State of Delaware. 
  
 4.1.29 Filing and Recording Taxes. All transfer
taxes, deed stamps, intangible taxes or other amounts in the nature of transfer taxes required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the transfer of the Property to Borrower have been
paid. All mortgage, mortgage recording, stamp, intangible or other similar tax required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the execution, delivery, recordation, filing, registration,
perfection or enforcement of any of the Loan Documents, including, without limitation, the Mortgage and the Second Mortgage, have been paid or are being paid simultaneously herewith, and the Mortgage and the Second Mortgage and the other Loan
Documents have been validly executed and delivered and are enforceable in accordance with their respective terms by Lender (or any subsequent holder thereof), subject to principles of equity and bankruptcy, insolvency and other laws generally
applicable to creditors’ rights and the enforcement of debtors’ obligations. 
  

 49 

 4.1.30 Special Purpose Entity/Separateness. 
  
 (a) Until the Debt has been paid in full, Borrower hereby
represents, warrants and covenants that (i) Borrower is, shall be and shall continue to be a Special Purpose Entity, and (ii) Principal is, shall be and shall continue to be a Special Purpose Entity. 
  
 (b) The representations, warranties and covenants set forth
in Section 4.1.30(a) shall survive for so long as any amount remains payable to Lender under this Agreement or any other Loan Document. 
  
 (c) All of the assumptions made in the Insolvency Opinion, including, but not limited to, any exhibits attached thereto, are true and
correct in all respects material to the opinions set forth therein and any assumptions made in any subsequent non-consolidation opinion required to be delivered in connection with the Loan Documents (an “Additional Insolvency
Opinion”), including, but not limited to, any exhibits attached thereto, will have been and shall be true and correct in all respects. Borrower has complied and will comply with, and Principal has complied and Borrower will cause
Principal to comply with, all of the assumptions made with respect to Borrower and Principal in the Insolvency Opinion. Borrower will, and shall cause Principal to, have complied and will comply with all of the assumptions made with respect to
Borrower and Principal in any Additional Insolvency Opinion. Each entity other than Borrower and Principal with respect to which an assumption shall be made in any Additional Insolvency Opinion will have complied and will comply with all of the
assumptions made with respect to it in any Additional Insolvency Opinion. 
  
 4.1.31 Management Agreement. The Management Agreement is in full force and effect and there is no default continuing beyond applicable grace or cure periods thereunder by any party thereto and no event has
occurred that, with the passage of time and/or the giving of notice would constitute a default thereunder. 
  
 4.1.32 Illegal Activity. To Borrower’s knowledge, no portion of the Property has been or will be purchased with proceeds of
any illegal activity. 
  
 4.1.33 No Change in
Facts or Circumstances; Disclosure. All information submitted by Borrower to Lender including, but not limited to, rent rolls, reports, certificates and other documents submitted in connection with the Loan or in satisfaction of the terms
thereof and all statements of fact made by Borrower in this Agreement or in any other Loan Document, are accurate, complete and correct in all material respects. There has been no material adverse change in any condition, fact, circumstance or event
that would make any such information inaccurate, incomplete or otherwise misleading in any material respect or that otherwise is reasonably likely to have a Material Adverse Effect. Borrower has disclosed to Lender all material facts and has not
failed to disclose any material fact that could cause any Provided Information or representation or warranty made herein to be materially misleading. 
  
 4.1.34 Investment Company Act. Borrower is not (a) an “investment company” or a company “controlled” by an
“investment company,” within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a
“holding company” or a “subsidiary company” 

  

 50 

 
within the meaning of the Public Utility Holding Company Act of 1935, as amended; or (c) subject to any other federal or state law or regulation which
purports to restrict or regulate its ability to borrow money. 
  
 4.1.35 Embargoed Person. At all times throughout the term of the Loan, including after giving effect to any Transfers permitted pursuant to the Loan Documents, (a) none of the funds or other assets of Borrower
or Principal shall constitute property of, or shall be beneficially owned, directly or indirectly, by any Person subject to trade restrictions under United States law, including, but not limited to, the International Emergency Economic Powers Act,
50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated under any such United States laws, with the result that the investment in Borrower or Principal, as
applicable (whether directly or indirectly), is or would be prohibited by law (each, an “Embargoed Person”) or the Loan made by Lender is or would be in violation of law; (b) no Embargoed Person shall have any interest
of any nature whatsoever in Borrower or Principal, as applicable, with the result that the investment in Borrower or Principal, as applicable (whether directly or indirectly), is or would be prohibited by law or the Loan is or would be in violation
of law; and (c) none of the funds of Borrower, Principal or Guarantor, as applicable, shall be derived from any unlawful activity by Borrower, Principal or Guarantor with the result that the investment in Borrower, Principal or Guarantor, as
applicable (whether directly or indirectly), is or would be prohibited by law or the Loan is or would be in violation of law. 
  
 4.1.36 Cash Management Account. 
  
 (a) This Agreement, together with the other Loan Documents, creates a valid and continuing security interest (as defined in the Uniform
Commercial Code of the State of Delaware) in the Property Account and Cash Management Account in favor of Lender, which security interest is prior to all other Liens, other than Permitted Encumbrances, and is enforceable as such against creditors of
and purchasers from Borrower. Other than in connection with the Loan Documents and except for Permitted Encumbrances, Borrower has not sold or otherwise conveyed the Property Account and Cash Management Account; 
  
 (b) Intentionally Omitted. 
  
 (c) Pursuant and subject to the terms hereof, the Property
Account Bank has agreed to comply with all instructions originated by Lender and Borrower, as applicable, without further consent by Borrower, directing disposition of the Property Account and all sums at any time held, deposited or invested
therein, together with any interest or other earnings thereon, and all proceeds thereof (including proceeds of sales and other dispositions), whether accounts, general intangibles, chattel paper, deposit accounts, instruments, documents or
securities; and 
  
 (d) The Property Account and
Cash Management Account are not in the name of any Person other than Borrower, as pledgor, or Lender, as pledgee. 
  
 4.1.37 Intentionally Omitted. 
  
 4.1.38 Intentionally Omitted 
  

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 Section 4.2 Survival of Representations. Borrower agrees that all of the representations and
warranties of Borrower set forth in Section 4.1 hereof and elsewhere in this Agreement and in the other Loan Documents shall survive for so long as any amount remains owing to Lender under this Agreement or any of the other Loan Documents by
Borrower. All representations, warranties, covenants and agreements made in this Agreement or in the other Loan Documents by Borrower shall be deemed to have been relied upon by Lender notwithstanding any investigation heretofore or hereafter made
by Lender or on its behalf. 
  
 ARTICLE 5 
  
 BORROWER COVENANTS 
  
 Section 5.1 Affirmative Covenants. From the date hereof and until
payment and performance in full of all obligations of Borrower under the Loan Documents or the earlier release of the Lien of the Mortgage (and all related obligations) in accordance with the terms of this Agreement and the other Loan Documents,
Borrower hereby covenants and agrees with Lender that: 
  
 5.1.1 Existence; Compliance with Legal Requirements. Borrower shall do or cause to be done all things necessary to preserve, renew and keep in full force and effect its existence, rights, licenses, permits and franchises and comply,
in all material respects, with all Legal Requirements applicable to Borrower and the Property. There shall never be committed by Borrower, and Borrower shall not permit any other Person in occupancy of or involved with the operation or use of the
Property to commit, any act or omission affording the federal government or any state or local government the right of forfeiture against the Property or any part thereof or any monies paid in performance of Borrower’s obligations under any of
the Loan Documents. Borrower hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording such right of forfeiture. Borrower shall at all times reasonably maintain, preserve and protect all material franchises
and material trade names, preserve all the remainder of its property used or useful in the conduct of its business, and shall keep the Property in reasonably good working order and repair, and from time to time make, or cause to be made, all
reasonably necessary repairs, renewals, replacements, betterments and improvements thereto, all as more fully provided in the Mortgage. Borrower shall keep the Property insured at all times by financially sound and reputable insurers, to such extent
and against such risks, and maintain liability and such other insurance, as is more fully provided in this Agreement. After prior notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding promptly initiated and
conducted in good faith and with due diligence, the validity of any Legal Requirement, the applicability of any Legal Requirement to Borrower or the Property or any alleged violation of any Legal Requirement, provided, that: (a) no
Release Default or Event of Default has occurred and remains uncured; (b) Borrower is permitted to do so under the provisions of any mortgage or deed of trust superior in lien to the Mortgage; (c) such proceeding shall be permitted under and be
conducted in accordance with the provisions of any instrument to which Borrower is subject and shall not constitute a default thereunder and such proceeding shall be conducted in accordance with all applicable statutes, laws and ordinances; (d)
neither the Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost; (e) Borrower shall, upon final determination thereof, promptly comply with any such Legal Requirement determined
to be 

  

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valid or applicable or cure any violation of any Legal Requirement; (f) such proceeding shall suspend the enforcement of the contested Legal Requirement
against Borrower and/or the Property; and (g) Borrower shall furnish such security as may be required in the proceeding, or as may be reasonably requested by Lender, to insure compliance with such Legal Requirement, together with all interest and
penalties payable in connection therewith. Lender may apply any such security, as necessary to cause compliance with such Legal Requirement at any time when, in the reasonable judgment of Lender, the validity, applicability or violation of such
Legal Requirement is finally established or the Property (or any part thereof or interest therein) shall be in imminent danger of being sold, forfeited, terminated, cancelled or lost. 
  
 5.1.2 Taxes and Other Charges. Borrower shall pay all Taxes and Other Charges now or hereafter levied
or assessed or imposed against the Property, or any part thereof, prior to delinquency; provided, however, Borrower’s obligation to directly pay Taxes shall be suspended for so long as adequate reserves for same are maintained
pursuant to Section 7.2 hereof. Borrower shall furnish to Lender receipts for the payment of the Taxes and the Other Charges prior to the date the same shall become delinquent provided, however, Borrower is not required to
furnish such receipts for payment of Taxes in the event that such Taxes have been paid by Lender pursuant to Section 7.2 hereof. Borrower shall not suffer and shall promptly cause to be paid and discharged any Lien or charge whatsoever which
may be or become a Lien or charge against the Property and that is prohibited in accordance with Section 5.2.2 hereof, and shall pay for all utility services provided to the Property prior to delinquency. After prior notice to Lender,
Borrower, at its own expense, may contest by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any Taxes, Other Charges or other Liens,
provided, that: (a) no Release Default or Event of Default has occurred and remains uncured; (b) Borrower is permitted to contest same under the provisions of any mortgage or deed of trust superior in lien to the Mortgage; (c) such
proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower is subject and shall not constitute a default thereunder and such proceeding shall be conducted in accordance with all
applicable statutes, laws and ordinances; (d) neither the Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost; (e) Borrower shall promptly upon final determination thereof pay
the amount of any such Taxes or Other Charges, together with all costs, interest and penalties which may be payable in connection therewith; (f) such proceeding shall suspend the collection of such contested Taxes or Other Charges from the Property;
and (g) Borrower shall furnish such security as may be required in the proceeding, or as may be reasonably requested by Lender, to insure the payment of any such Taxes or Other Charges, together with all interest and penalties thereon. Lender may
pay over any such other security or part thereof held by Lender to the claimant entitled thereto at any time when, in the judgment of Lender, the entitlement of such claimant is established or the Property (or any part thereof or interest therein)
shall be in imminent danger of being sold, forfeited, terminated, cancelled or lost or there shall be any danger of the Lien of the Mortgage or the Second Mortgage being primed by any related Lien. 
  
 5.1.3 Litigation. Borrower shall give prompt notice
to Lender of any litigation or governmental proceedings pending or threatened in writing against Borrower, Principal and/or Guarantor which is reasonably likely to cause a Material Adverse Effect. 
  

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 5.1.4 Access to Property. Borrower shall permit agents, representatives and
employees of Lender to inspect the Property or any part thereof at reasonable hours upon reasonable advance notice (which may be given verbally). 
  
 5.1.5 Notice of Default. Borrower shall promptly advise Lender of any material adverse change in Borrower’s, Principal’s
or Guarantor’s condition, financial or otherwise, or of the occurrence of any Default or Event of Default of which Borrower has knowledge. 
  
 5.1.6 Cooperate in Legal Proceedings. Borrower shall cooperate fully with Lender with respect to any proceedings before any court,
board or other Governmental Authority which may in any way affect the rights of Lender hereunder or any rights obtained by Lender under any of the other Loan Documents and, in connection therewith, permit Lender, at its election, to participate in
any such proceedings. 
  
 5.1.7 Perform Loan
Documents. Borrower shall observe, perform and satisfy all the terms, provisions, covenants and conditions of, and shall pay when due all costs, fees and expenses to the extent required under the Loan Documents executed and delivered by, or
applicable to, Borrower. Payment of the costs and expenses associated with any of the foregoing shall be in accordance with the terms and provisions of this Agreement, including, without limitation, the provisions of Section 10.13 hereof.

  
 5.1.8 Award and Insurance Benefits.
Borrower shall cooperate with Lender in obtaining for Lender the benefits of any Awards or Insurance Proceeds lawfully or equitably payable in connection with the Property, and Lender shall be reimbursed for any expenses reasonably incurred in
connection therewith (including reasonable attorneys’ fees and disbursements, and the payment by Borrower of the expense of an appraisal on behalf of Lender in case of Casualty or Condemnation affecting the Property or any part thereof) out of
such Insurance Proceeds. 
  
 5.1.9 Further
Assurances. Borrower shall, at Borrower’s sole cost and expense: 
  
 (a) furnish to Lender all instruments, documents, boundary surveys, footing or foundation surveys, certificates, plans and specifications, appraisals, title and other insurance reports and agreements, and each and
every other document, certificate, agreement and instrument required to be furnished by Borrower pursuant to the terms of the Loan Documents or which are reasonably requested by Lender in connection therewith; 
  
 (b) execute and deliver to Lender such documents,
instruments, certificates, assignments and other writings, and do such other acts necessary or desirable, to evidence, preserve and/or protect the collateral at any time securing or intended to secure the obligations of Borrower under the Loan
Documents, as Lender may reasonably require; and 
  
 (c) do and execute all and such further lawful and reasonable acts, conveyances and assurances for the better and more effective carrying out of the intents and purposes of this Agreement, the other Loan Documents, as Lender shall
reasonably require from time to time. 
  

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 5.1.10 Mortgage Taxes. Borrower represents that it has paid all state, county and
municipal recording and all other taxes imposed upon the execution and recordation of the Mortgage. 
  
 5.1.11 Financial Reporting. 
  
 (a) Borrower will keep and maintain or will cause to be kept and maintained on a Fiscal Year basis, in accordance with GAAP and the
Uniform System of Accounts (or such other accounting basis acceptable to Lender), proper and accurate books, records and accounts reflecting all of the financial affairs of Borrower and all items of income and expense in connection with the
operation of the Property. Lender shall have the right from time to time at all times during normal business hours upon reasonable notice (which may be verbal) to examine such books, records and accounts at the office of Borrower or any other Person
maintaining such books, records and accounts and to make such copies or extracts thereof as Lender shall desire. After the occurrence of an Event of Default, Borrower shall pay any costs and expenses incurred by Lender to examine Borrower’s
accounting records with respect to the Property, as Lender shall determine to be necessary or appropriate in the protection of Lender’s interest. 
  
 (b) Borrower will furnish to Lender annually, within one hundred twenty (120) days following the end of each Fiscal Year of Borrower, a
complete copy of Borrower’s combined annual financial statements (combined with those of the Other Borrowers) and Guarantor’s consolidated annual financial statements audited by a “Big Four” accounting firm or other independent
certified public accountant acceptable to Lender in accordance with GAAP (or such other accounting basis acceptable to Lender) covering the Property and the Other Properties for such Fiscal Year and containing statements of profit and loss for
Borrower, the Other Borrowers and Guarantor and a balance sheet for Borrower, the Other Borrowers and Guarantor. Such statements, with respect to the Borrower and the Other Borrowers shall set forth the financial condition and the results of
operations for the Property and the Other Properties for such Fiscal Year, and shall include, but not be limited to, amounts representing annual Aggregate Net Cash Flow, Aggregate Net Operating Income, Aggregate Gross Income from Operations and
Aggregate Operating Expenses. In addition, such statements shall include supplementary information setting forth the financial condition and results of operation for each of Borrower and the Other Borrowers, Borrower’s, the Other
Borrowers’ and Guarantor’s annual financial statements shall be accompanied by (i) an unqualified opinion of a “Big Four” accounting firm or other independent certified public accountant reasonably acceptable to Lender, (ii) a
schedule audited by such independent certified public accountant reconciling Aggregate Net Operating Income to Aggregate Net Cash Flow (the “Net Cash Flow Schedule”), which shall itemize all adjustments made to
Aggregate Net Operating Income to arrive at Aggregate Net Cash Flow deemed material by such independent certified public accountant, and (iii) an Officer’s Certificate certifying that (x) the Capital Expenditures for such year and (y) each
annual financial statement presents fairly the financial condition and the results of operations of Borrower, the Other Borrowers, Guarantor and the Property and the Other Properties being reported upon and that such financial statements have been
prepared in accordance with GAAP and as of the date thereof whether there exists an event or circumstance which constitutes a Default or Event of Default under the Loan Documents executed and delivered by, or applicable to, Borrower, the Other
Borrowers or Guarantor, and if such Default or an Event of Default exists, the nature thereof, the period of time it has existed and the action then being taken to remedy the same. 
  

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 (c) Borrower will furnish, or cause to be furnished, to Lender on or before (i)
twenty-five (25) days after the end of each calendar month thereafter, and (ii) forty-five (45) days after the end of each calendar quarter thereafter, the following items, accompanied by an Officer’s Certificate stating that such items are
true, correct, accurate, and complete and fairly present the financial condition and results of the operations of Borrower and the Property (subject to normal year-end adjustments) as applicable: (i) monthly and year-to-date operating statements
prepared for each calendar month, noting Net Operating Income, Gross Income from Operations, and Operating Expenses (not including any contributions to the FF&E Reserve Funds and/or the Debt Service Reserve), and, upon Lender’s request,
other information necessary and sufficient to fairly represent the financial position and results of operation of the Property during such period, and containing a comparison of budgeted income and expenses and the actual income and expenses
together with a detailed explanation of any variances that either exceed (1) 10% and $10,000 with respect to any one (1) line item or (2) 5% in the aggregate between all budgeted and actual amounts for such periods, all in form reasonably
satisfactory to Lender; and (ii) a calculation reflecting the annual Debt Service Coverage Ratio for the immediately preceding twelve (12) month period for which financial statements are available as of the last day of each calendar month or quarter
(as applicable), and (iii) a computation of Net Cash Flow for such period. In addition, such Officer’s Certificate shall also state that the representations and warranties of Borrower set forth in Section 4.1.30 are true and correct as
of the date of such certificate and whether there are trade payables outstanding for more than sixty (60) days. 
  
 (d) Intentionally Omitted. 
  
 (e) Intentionally Omitted. 
  
 (f) Intentionally Omitted. 
  
 (g) Intentionally Omitted. 
  
 (h) Intentionally Omitted. 
  
 (i) Borrower will furnish to Lender on or before forty-five (45) days after the end of each calendar quarter (a) a statement setting forth
(i) the Aggregate Net Cash Flow for each calendar quarter and calendar year occurring during the full twelve (12) calendar month period immediately proceeding the date of such statement for which financial statements are available. 
  
 (j) Lender hereby approves the Annual Budget and the Annual
FF&E Budget for the partial year 2004 previously delivered to it. For each calendar year commencing with calendar year 2005, Borrower shall submit to Lender (i) an Annual Budget for the Property and (ii) an Annual FF&E Budget with respect to
FF&E required to be made to the Property for such year, each not later than thirty (30) days prior to the commencement of such period or calendar year in form reasonably satisfactory to Lender. The Annual FF&E Budget shall provide for
FF&E expenditures equal to at least four (4%) percent of the Gross Income from Operations derived from the operation of the Property during the preceding calendar year. The Annual Budget shall be subject to Lender’s reasonable written
approval (each such Annual Budget as so 

  

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approved in writing by Lender, is herein referred to as an “Approved Annual Budget”). Notwithstanding the foregoing, variances
between budgeted and actual amounts in the Approved Annual Budget may vary by up to the greater of ten percent (10%) or $10,000.00 with respect to any one (1) line item and up to five percent (5%) in the aggregate for the entire Approved Annual
Budget without the consent of Lender. The Annual FF&E Budget shall likewise be subject to Lender’s reasonable written approval (each such Annual FF&E Budget as so approved in writing by Lender, is herein referred to as an
“Approved Annual FF&E Budget”). In the event that Lender objects to a proposed Annual Budget and/or Annual FF&E Budget submitted by Borrower, Lender shall advise Borrower of such objections within ten (10)
Business Days after receipt thereof (and deliver to Borrower a reasonably detailed description of such objections) and Borrower shall promptly revise such Annual Budget and/or Annual FF&E Budget, as applicable, and resubmit the same to Lender.
Lender shall advise Borrower of any objections to such revised Annual Budget and/or Annual FF&E Budget within five (5) Business Days after receipt thereof (and deliver to Borrower a reasonably detailed description of such objections) and
Borrower shall promptly revise the same in accordance with the process described in this subsection until Lender approves the Annual Budget and/or Annual FF&E Budget. Notwithstanding the foregoing, Lender shall be deemed to have consented to any
Annual Budget and/or Annual FF&E Budget if Lender has not provided Borrower with a written notice of denial within ten (10) Business Days of Lender’s receipt of such Annual Budget and/or Annual FF&E Budget so long as Borrower’s
request is submitted with the words “IMMEDIATE RESPONSE REQUIRED, DEEMED APPROVED IF NO RESPONSE RECEIVED WITHIN TEN (10) BUSINESS DAYS” in bold print, all capital letters, in 14 point or larger and prominently displayed at the top of any
correspondence and on any envelope containing the request. Until such time that Lender approves a proposed Annual Budget and/or Annual FF&E Budget (or approval is deemed given), the most recently Approved Annual Budget and/or Annual Approved
FF&E Budget shall apply; provided, that, such Approved Annual Budget shall be adjusted to reflect actual increase in utility costs, Taxes, Insurance Premiums and Other Charges. 
  
 (k) In the event that, Borrower must incur an extraordinary
Operating Expense or Capital Expenditure not set forth in the Approved Annual Budget (each an “Extraordinary Expense”), then Borrower shall promptly deliver to Lender a reasonably detailed explanation of such proposed
Extraordinary Expense together with all invoices or other backup reasonably required by Lender to substitute such proposed Extraordinary Expense and the amount thereof; provided, that, in the event Borrower is required to incur
Extraordinary Expenses before Lender’s consent is granted due to emergencies involving imminent danger to person or property Lender’s consent shall not be required with respect to such emergency only provided that Borrower shall promptly
provide Lender with a reasonably detailed description of such expenditures and the emergency following same. No Rents may be used to pay an Extraordinary Expense unless and until Lender has reasonably approved same in writing, which approval will
not by unreasonably withheld or delayed; provided, however, Lender shall be deemed to have consented to such Extraordinary Expense if Lender has not provided Borrower with a written notice of denial within ten (10) Business Days of Lender’s
receipt of such request so long as Borrower’s request is submitted with the words “IMMEDIATE RESPONSE REQUIRED, DEEMED APPROVED IF NO RESPONSE RECEIVED WITHIN TEN (10) BUSINESS DAYS” in bold print, all capital letters, in 14 point or
larger and prominently displayed at the top of any correspondence and on any envelope containing the request. 

  

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Notwithstanding the foregoing, Lender’s consent shall not be required for the payment of Taxes, Insurance Premiums or utilities with respect to the
Property in excess of the amounts provided for in the Approved Annual Budget for such items provided that Borrower shall provide prompt notice to Lender of such increases following Borrower’s knowledge of such increase. 
  
 (l) Any reports, statements or other information required to
be delivered under this Agreement shall be delivered (i) in paper form, (ii) on a diskette, and (iii) if requested by Lender and within the capabilities of Borrower’s data systems without change or modification thereto, in electronic form and
prepared using a Microsoft Word for Windows or WordPerfect for Windows files (which files may be prepared using a spreadsheet program and saved as word processing files). Borrower agrees that Lender may disclose information regarding the Property
and Borrower that is provided to Lender pursuant to this Section 5.1.11 in connection with the Securitization to such parties requesting such information in connection with such Securitization. 
  
 5.1.12 Business and Operations. Borrower will
continue to engage in the businesses presently conducted by it as and to the extent the same are necessary for the ownership, maintenance, management and operation of the Property. Borrower will qualify to do business and will remain in good
standing under the laws of each jurisdiction as and to the extent the same are required for the ownership, maintenance, management and operation of the Property. 
  
 5.1.13 Title to the Property. Borrower will warrant and defend (a) the title to the Property and
every part thereof, subject only to Liens permitted hereunder (including Permitted Encumbrances), and (b) the validity and priority of the Lien of the Mortgage, the Second Mortgage and the Assignment of Leases, subject only to Liens permitted
hereunder (including Permitted Encumbrances), in each case against the claims of all Persons whomsoever. Borrower shall reimburse Lender for any losses, costs, damages or expenses (including reasonable attorneys’ fees and court costs) incurred
by Lender if an interest in the Property, other than as permitted hereunder, is claimed by another Person. 
  
 5.1.14 Costs of Enforcement. In the event (a) that the Mortgage and/or the Second Mortgage is foreclosed in whole or in part or
that the Mortgage and/or the Second Mortgage is put into the hands of an attorney for collection, suit, action or foreclosure, (b) of the foreclosure of any mortgage prior to or subsequent to the Mortgage and/or the Second Mortgage in which
proceeding Lender is made a party, or (c) of the bankruptcy, insolvency, rehabilitation or other similar proceeding in respect of Borrower or any direct or indirect owners, members or partners of Borrower or an assignment by Borrower or any direct
or indirect owners, members or partners of Borrower for the benefit of its creditors, Borrower, on behalf of itself and its successors and assigns, agrees that it/they shall be chargeable with and shall pay all costs of collection and defense,
including attorneys’ fees and costs, incurred by Lender or Borrower in connection therewith and in connection with any appellate proceeding or post-judgment action involved therein, together with all required service or use taxes. 

 
 5.1.15 Estoppel Statement. 
  
 (a) After request by Lender from time to time, but no more
frequently than twice in any 12 month period, Borrower shall within ten (10) days furnish Lender with a 

  

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statement, duly acknowledged and certified, setting forth (i) the original principal amount of the Loan, (ii) the Outstanding Principal Balance, (iii) the
date installments of interest and/or principal were last paid, (iv) any offsets or defenses to the performance of the Obligations, if any, and (v) that the Note, this Agreement, the Mortgage and the other Loan Documents are valid, legal and binding
obligations of Borrower and have not been modified or if modified, giving particulars of such modification. 
  
 (b) Borrower shall deliver to Lender promptly upon request from time to time and subject to the terms of the Leases, tenant estoppel
certificates from each commercial tenant leasing 5,000 square feet or more of space at the Property in form and substance reasonably satisfactory to Lender; provided, that, Borrower shall not be required to deliver such certificates
more frequently than two (2) times in any calendar year. 
  
 (c) Intentionally Omitted. 
  
 5.1.16 Loan Proceeds. Borrower shall use the proceeds of the Loan received by it on the Closing Date only for the purposes set forth in Section 2.1.4 hereof. 
  
 5.1.17 Performance by Borrower. Borrower shall not
enter into or otherwise suffer or permit any amendment, waiver, supplement, termination or other modification of any Loan Document executed and delivered by, or applicable to, Borrower without the prior consent of Lender. 
  
 5.1.18 Confirmation of Representations. Borrower
shall deliver, in connection with any Securitization, (a) one or more Officer’s Certificates certifying as to the accuracy of all representations made by Borrower in the Loan Documents as of the date of the closing of such Securitization in all
relevant jurisdictions, and (b) certificates of the relevant Governmental Authorities in all relevant jurisdictions indicating the good standing and qualification of Borrower and Principal as of the date of the Securitization. 
  
 5.1.19 No Joint Assessment. Borrower shall not
suffer, permit or initiate the joint assessment of the Property (a) with any other real property constituting a tax lot separate from the Property, and (b) which constitutes real property with any portion of the Property which may be deemed to
constitute personal property, or any other procedure whereby the lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to such real property portion of the Property. 
  
 5.1.20 Leasing Matters. Any Leases with respect to
the Property executed after the date hereof, for more than 5,000 square feet shall be approved by Lender, which approval shall not be unreasonably withheld, delayed or conditioned. Upon request, Borrower shall furnish Lender with executed copies of
all Leases. All renewals of Leases and all proposed Leases shall provide for rental rates comparable to existing local market rates. All proposed Leases shall be on commercially reasonable terms and shall not contain any terms which would materially
affect Lender’s rights under the Loan Documents. All Leases executed after the date hereof shall provide that they are subordinate to the Mortgage and that the lessee agrees to attorn to Lender or any purchaser at a sale by foreclosure or power
of sale. Borrower shall (a) observe and perform the obligations imposed upon the lessor under the Leases in a commercially 

  

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reasonable manner; (b) enforce and may amend or terminate the terms, covenants and conditions contained in the Leases upon the part of the lessee thereunder
to be observed or performed in a commercially reasonable manner and in a manner not to impair the value of the Property involved except that no termination by Borrower or acceptance of surrender by a tenant of any Leases of more than 5,000 square
feet shall be permitted unless by reason of a tenant default and then only in a commercially reasonable manner to preserve and protect the Property; provided, however, that no such termination or surrender of any Lease covering more
than 5,000 square feet will be permitted without the consent of Lender; (c) not collect any of the rents more than one (1) month in advance (other than security deposits); (d) not execute any other assignment of lessor’s interest in the Leases
or the Rents (except as contemplated by the Loan Documents); (e) not alter, modify or change the terms of any Lease in excess of 5,000 square feet in a manner inconsistent with the provisions of the Loan Documents; and (f) execute and deliver at the
request of Lender all such further assurances, confirmations and assignments in connection with the Leases as Lender shall from time to time reasonably require. Notwithstanding anything to the contrary contained herein, Borrower shall not enter into
a lease of all or substantially all of the Property without Lender’s prior consent. 
  
 5.1.21 Alterations. Borrower shall obtain Lender’s prior consent to any alterations to any Improvements (excluding Decorative
Changes), which consent shall not be unreasonably withheld, delayed or conditioned. Notwithstanding the foregoing, Lender’s consent shall not be required in connection with: any alterations to the Improvements (excluding Decorative Changes)
that will not have a Material Adverse Effect, provided, that, such alterations (a) are made in connection with tenant improvement work performed pursuant to the terms of any Lease executed on or before the date hereof, (b) do not
adversely affect any structural component of any Improvements, any utility or HVAC system contained in any Improvements or the exterior of any building constituting a part of any Improvements and the aggregate cost thereof does not exceed
$1,000,000.00 (the “Threshold Amount”), or (c) are performed in connection with Restoration after the occurrence of a Casualty in accordance with the terms and provisions of this Agreement. If the total unpaid amounts
due and payable with respect to alterations to the Improvements at the Property shall at any time exceed the Threshold Amount, Borrower shall promptly deliver to Lender as security for the payment of such amounts and as additional security for
Borrower’s obligations under the Loan Documents any of the following: (i) cash, (ii) U.S. Obligations, (iii) other securities having a rating acceptable to Lender and that the applicable Rating Agencies have confirmed in writing will not, in
and of itself, result in a downgrade, withdrawal or qualification of the initial, or, if higher, then current ratings assigned to any Securities or any class thereof in connection with any Securitization, or (iv) a completion and performance bond or
an irrevocable letter of credit (payable on sight draft only) issued by a financial institution (A) having a rating by S&P of not less than “A-1+” if the term of such bond or letter of credit is no longer than three (3) months or, if
such term is in excess of three (3) months, issued by a financial institution having a rating that is reasonably acceptable to Lender, and (B) that the applicable Rating Agencies have confirmed in writing will not, in and of itself, result in a
downgrade, withdrawal or qualification of the initial, or, if higher, then current ratings assigned to any Securities or any class thereof in connection with any Securitization. Such security shall be in an amount equal to the excess of the total
unpaid amounts with respect to alterations to the Improvements on the Property (other than such amounts to be paid or reimbursed by tenants under the Leases) over the Threshold Amount and 

  

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upon an Event of Default Lender may apply such security from time to time at the option of Lender to pay for such alterations. 
  
 5.1.22 Operation of Property. 
  
 (a) Borrower shall cause the Property to be operated, in all
material respects, in accordance with the Management Agreement or Replacement Management Agreement, as applicable. In the event that the Management Agreement expires or is terminated (without limiting any obligation of Borrower to obtain
Lender’s consent to any termination or modification of the Management Agreement in accordance with the terms and provisions of this Agreement), Borrower shall promptly enter into a Replacement Management Agreement with Manager or another
Qualified Manager, as applicable. 
  
 (b)
Borrower shall: (i) promptly perform and/or observe in all material respects all of the covenants and agreements required to be performed and observed by Borrower under the Management Agreement and do all things necessary to preserve and to keep
unimpaired its material rights thereunder; (ii) promptly notify Lender of any material default under the Management Agreement of which it is aware; (iii) promptly deliver to Lender a copy of each financial statement, business plan, capital
expenditures plan, material notice, material report and estimate received by it under the Management Agreement; and (iv) enforce the performance and observance of all of the covenants and agreements required to be performed and/or observed by
Manager under the Management Agreement, in a commercially reasonable manner. 
  
 Section 5.2 Negative Covenants. From the date hereof until payment and performance in full of all obligations of Borrower under the Loan Documents or the earlier release of the Lien of the Mortgage and Second
Mortgage in accordance with the terms of this Agreement and the other Loan Documents, Borrower covenants and agrees with Lender that it will not do, directly or indirectly, any of the following: 
  
 5.2.1 Operation of Property. 
  
 (a) Borrower shall not, without Lender’s prior consent
(which consent shall not be unreasonably withheld): (i) subject to Section 9.5 hereof, surrender, terminate or cancel the Management Agreement; provided, that Borrower may, without Lender’s consent, replace the Manager so long as
the replacement manager is a Qualified Manager pursuant to a Replacement Management Agreement; (ii) reduce or consent to the reduction of the term of the Management Agreement; (iii) increase or consent to the increase of the amount of any charges or
fees under the Management Agreement; or (iv) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under, the Management Agreement in any material respect. 
  
 (b) Following the occurrence and during the continuance of
an Event of Default, Borrower shall not exercise any rights, make any decisions, grant any approvals or otherwise take any action under the Management Agreement without the prior consent of Lender, which consent may be withheld in Lender’s sole
discretion, unless failure to do so would cause a default of Borrower’s obligations under the Management Agreement. 
  

 61 

 5.2.2 Liens. Borrower shall not create, incur, assume or suffer to exist any Lien
on any portion of the Property or permit any such action to be taken, except: 
  
 (a) Permitted Encumbrances; 
  
 (b) Liens created by or permitted pursuant to the Loan Documents; and 
  
 (c) Liens for Taxes or Other Charges not yet due. 
  
 5.2.3 Dissolution. Borrower shall not (a) engage in any dissolution, liquidation, consolidation or
merger with or into any other business entity, (b) engage in any business activity not related to the ownership and operation of the Property, (c) transfer, lease or sell, in one transaction or any combination of transactions, the assets or all or
substantially all of the properties or assets of Borrower except to the extent permitted by the Loan Documents, (d) modify, amend, waive or terminate its organizational documents or its qualification and good standing in any jurisdiction, or (e)
cause Principal to (i) dissolve, wind up or liquidate or take any action, or omit to take any action, as a result of which Principal would be dissolved, wound up or liquidated in whole or in part, or (ii) amend, modify, waive or terminate the
certificate of incorporation or bylaws of Principal, in each case, without obtaining the prior consent of Lender. 
  
 5.2.4 Change in Business. Borrower shall not enter into any line of business other than the ownership and operation of the
Property, or make any material change in the scope or nature of its business objectives, purposes or operations, or undertake or participate in activities other than the continuance of its present business. 
  
 5.2.5 Debt Cancellation. Borrower shall not cancel or
otherwise forgive or release any claim or debt (other than termination of Leases in accordance herewith) owed to Borrower by any Person, except for adequate consideration and in the ordinary course of Borrower’s business. 
  
 5.2.6 Zoning. Borrower shall not initiate or consent
to any zoning reclassification of any portion of the Property or seek any variance under any existing zoning ordinance, or use or permit the use of any portion of the Property in any manner that could result in such use becoming a non-conforming use
under any zoning ordinance or any other applicable land use law, rule or regulation, in each case, without the prior consent of Lender. 
  
 5.2.7 No Joint Assessment. Borrower shall not suffer, permit or initiate the joint assessment of all or any portion of the Property
with (a) any other real property constituting a tax lot separate from the Property, or (b) any portion of the 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 the Property. 
  
 5.2.8 Principal Place of Business and Organization. Borrower shall not change its principal place of business set forth in the
introductory paragraph of this Agreement without first giving Lender at least thirty (30) days prior notice. Borrower shall not change the place of its organization as set forth in Section 4.1.28 without the consent of Lender, which consent
shall not be unreasonably withheld. Upon Lender’s request, Borrower shall authorize the filing of additional financing statements, security agreements and other instruments which may be 

  

 62 

 
necessary to effectively evidence or perfect Lender’s security interest in the Property as a result of such change of principal place of business or
place of organization. 
  
 5.2.9 ERISA.

  
 (a) Borrower shall not 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 ERISA. 
  
 (b) Borrower further covenants and agrees to deliver to Lender such certifications or other evidence from time to time throughout the term of the Loan, as requested by Lender in its sole discretion, that (i) Borrower
is not an “employee benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “governmental plan” within the meaning of Section 3(32) of ERISA; (ii) Borrower is not subject to any state statute
regulating investments of, or fiduciary obligations with respect to, governmental plans; and (iii) one or more of the following circumstances is true: 
  

	 	(i)	Equity interests in Borrower are publicly offered securities, within the meaning of 29 C.F.R. §2510.3-101(b)(2); 

  

	 	(ii)	Less than twenty-five percent (25%) of each outstanding class of equity interests in Borrower is held by “benefit plan investors” within the meaning of 29 C.F.R.
§2510.3-101(f)(2); or 

  

	 	(iii)	Borrower qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R. §2510.3-101(c) or (e).

  
 5.2.10 Transfers.

  
 (a) Except for the transfer of the Property
in connection with a release thereof pursuant to Section 2.5, Borrower shall not sell, convey, mortgage, grant, bargain, encumber, pledge, assign, grant options with respect to, or otherwise transfer or dispose of (directly or indirectly,
voluntarily or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) the Property or any part thereof or any legal or beneficial interest therein or permit a Sale or Pledge of an interest in any
Restricted Party (collectively, a “Transfer”), other than (x) pursuant to Leases of space in the Improvements to tenants in accordance with the provisions of Section 5.1.20 hereof, and (y) the disposition of Equipment and other
Personal Property pursuant to the replacement thereof or otherwise in the ordinary course of the operation of the Property, without (i) the prior written consent of Lender and (ii) if a Securitization has occurred or is pending within thirty (30)
days, delivery to Lender of written confirmation from the Rating Agencies that the Transfer will not result in the downgrade, withdrawal or qualification of the then current ratings assigned to any Securities or the proposed rating of any
Securities. 
  
 (b) A Transfer shall include, but
not be limited to: (i) an installment sales agreement wherein Borrower agrees to sell the Property or any part thereof for a price to be paid 

  

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in installments; (ii) an agreement by Borrower leasing all or a substantial part of the Property for other than actual occupancy by a space tenant thereunder
or a sale, assignment or other transfer of, or the grant of a security interest in, Borrower’s right, title and interest in and to any Leases or any Rents; (iii) if a Restricted Party is a corporation, any merger, consolidation or Sale or
Pledge of such corporation’s stock or the creation or issuance of new stock; (iv) if a Restricted Party is a limited or general partnership or joint venture, any merger or consolidation or the change, removal, resignation or addition of a
general partner or the Sale or Pledge of the partnership interest of any general partner or any profits or proceeds relating to such partnership interest, or the Sale or Pledge of limited partnership interests or any profits or proceeds relating to
such limited partnership interests or the creation or issuance of new limited partnership interests; (v) if a Restricted Party is a limited liability company, any merger or consolidation or the change, removal, resignation or addition of a- managing
member or non-member manager (or if no managing member, any member) or the Sale or Pledge of the membership interest of a managing member (or if no managing member, any member) or any profits or proceeds relating to such membership interest, or the
Sale or Pledge of non-managing membership interests or the creation or issuance of new non-managing membership interests; or (vi) if a Restricted Party is a trust or nominee trust, any merger, consolidation or the Sale or Pledge of the legal or
beneficial interest in a Restricted Party or the creation or issuance of new legal or beneficial interests. 
  
 (c) Notwithstanding the provisions of this Section 5.2.10, the following transfers shall not be deemed a Transfer: (i) a transfer
by devise or descent or by operation of law upon the death of a member, partner or shareholder of a Restricted Party; (ii) the Sale or Pledge, in one or a series of transactions, of not more than forty-nine percent (49%) of the stock in a Restricted
Party; provided, however, no such transfers shall result in the change of voting control in the Restricted Party, and as a condition to each such transfer, Lender shall receive not less than thirty (30) days prior written notice of
such proposed transfer, (iii) the Sale or Pledge, in one or a series of transactions, of not more than forty-nine percent (49%) of the limited partnership interests or non-managing membership interests (as the case may be) in a Restricted Party;
provided, however, as a condition to each such transfer, Lender shall receive not less than thirty (30) days prior written notice of such proposed transfer, (iv) transfers, issuances, pledges and redemptions of stock in Wyndham
International, Inc. (“Wyndham”) (and its successors), so long as (A) Wyndham (or any such successor) is (or is controlled by) a Public Company and (B) the surviving entity is primarily involved in, or has a significant business line
involving, the ownership and operation of real estate similar to the Property, (v) the merger or consolidation of Wyndham (or its successors), provided that the surviving entity of such merger or consolidation is (or is controlled by) (A) a
Public Company, and (B) primarily involved in, or has a significant business line involving, the ownership or operation of real estate similar to the Property, (vi) the granting of easements, cross-easements, agreements, restrictions, reservations
and rights in the ordinary course of business for use, access, water and sewer lines, telephone and telegraph lines, electric lines or other utilities or for other similar purposes, provided that no such easements, agreements, restrictions or
rights shall materially impair the utility and/or operation of the Property or Borrower’s ability to repay the Debt as it becomes due or Borrower’s ability to perform any of its obligations under the Loan Documents, and (vii) transfers of
direct or indirect interests in any Borrower or Principal to Affiliates of Wyndham (or its successors) provided that after such transfers such Borrower and Principal are controlled, directly or indirectly, by Wyndham (or its successors). In
addition, on a one time basis, Wyndham may merge or consolidate with a public or private entity in which the surviving entity is not and is not 

  

 64 

 
controlled by a Public Company provided that (a) after such merger, each Borrower and Principal shall continue to comply with the terms of Section
4.1.30 hereof, (b) such merger or consolidation is to a Qualified Transferee, and (c) the surviving entity is primarily involved in, or has a significant business line involving, the ownership and operation of real estate similar to the
Property. In connection with any transfer or merger permitted under this Section 5.2.10, Borrower shall deliver an Additional Insolvency Opinion if, after such transfer or merger, more than forty-nine percent (49%) of any direct legal or
beneficial interest in Borrower (or in any constituent entity of Borrower that is required to comply with the terms of Section 4.1.30 hereof) is owned by a new or successor entity. Such Additional Insolvency Opinion shall be reasonably
acceptable to (a) Lender, prior to a Securitization or (b) the Rating Agencies, if a Securitization has occurred. Notwithstanding anything to the contrary contained herein, pledges and hypothecations of indirect equity interests in Borrower shall be
permitted provided (i) Wyndham (or its successor) maintains control of, and holds beneficial direct or indirect ownership interests of not less than fifty-one percent (51%) of the membership interests or partnership interests, as applicable, in,
each entity comprising Borrower and (ii) any such pledges or hypothecations are in connection with that certain Credit Agreement and that certain Increasing Rate Note Purchase and Loan Agreement each between Wyndham (or its successors) and The Chase
Manhattan Bank, each dated June 30, 1999, as amended or another credit agreement with an institutional lender or a public bond offering to prepay or refinance in full or in part any such credit facility which institutional lender or bondholders (or
the trustee on their behalf), as applicable shall be making or holding a loan to Wyndham or its successor or its Affiliates (other than Borrower or Principal). A foreclosure sale (or transfer in lieu thereof) of any such pledge or hypothecation to
The Chase Manhattan Bank, or another institutional lender as collateral agent for syndicate lenders or another institutional lender, or the bond trustee, shall be permitted provided (i) Lender is given at least sixty (60) days prior written
notice of the proposed foreclosure sale or transfer in lieu thereof; (ii) the transferee is a reputable entity or person, creditworthy, with sufficient financial worth considering any obligations assumed and undertaken with respect to the Loan, as
evidenced by financial statements and other information reasonably requested by Lender; (iii) the Property at all times shall continue to be managed by a Qualified Manager, and (iv) and any and all such entities will comply with all of the
requirements set forth in the Note, this Agreement, the Mortgage and the other Loan Documents. 
  
 (d) Lender shall not be required to demonstrate any actual impairment of its security or any increased risk of default hereunder in order
to declare the Debt immediately due and payable upon a Transfer without Lender’s consent to the extent required hereunder. This provision shall apply to every Transfer regardless of whether voluntary or not, or whether or not Lender has
consented to any previous Transfer. Notwithstanding anything to the contrary contained in this Section 5.2.10, (a) no transfer (whether or not such transfer shall constitute a Transfer) shall be made to any Embargoed Person and (b) in the
event any transfer (whether or not such transfer shall constitute a Transfer) results in any Person owning in excess of forty-nine percent (49%) of the ownership interest in a Restricted Party, Borrower shall, prior to such transfer, deliver an
updated Insolvency Opinion to Lender, which opinion shall be in form, scope and substance reasonably acceptable in all respects to Lender and the Rating Agencies. 
  
 (e) Notwithstanding anything to the contrary contained in this Section 5.2.10, Lender shall not
withhold its consent to a one-time sale, assignment, or other transfer of all of the Property, provided that (i) Lender receives sixty (60) days prior written notice of such transfer, 

  

 65 

 
(ii) no Event of Default has occurred and is continuing and (iii) upon the satisfaction (in the reasonable determination of Lender) of the following matters:

  
 (A) Borrower or Transferee (defined below)
shall pay Lender a transfer fee equal to 1% of the Outstanding Principal Balance at the time of such transfer and pay any and all reasonable out-of-pocket costs incurred in connection with the Transfer (including, without limitation, Lender’s
reasonable counsel fees and disbursements and all recording fees, title insurance premiums and mortgage and intangible taxes and the fees and expenses of the Rating Agencies in connection with such Transfer); 
  
 (B) The proposed transferee (the
“Transferee”) (i) shall be a special purpose bankruptcy remote entity that complies with all of the requirements of Section 4.1.30 and whose organizational documents are substantially similar to Borrower’s organizational
documents, or if not substantially similar, acceptable to the Rating Agencies and (ii) is controlled by a Qualified Transferee; 
  
 (C) Transferee shall assume all of the obligations of Borrower under the Note, this Agreement, the Mortgage and the other Loan Documents
in a manner reasonably satisfactory to Lender in all respects, including, without limitation, by entering into an assumption agreement in form and substance reasonably satisfactory to Lender and delivering such legal opinions as Lender may
reasonably require; 
  
 (D) The Property shall be
managed by a Qualified Manager following such transfer; 
  
 (E) The proposed transfer is permitted pursuant to the Franchise Agreement, if any, or the Franchisor consents to such proposed transfer if Franchisor has the right to consent to such proposed transfer; 
  
 (F) Transferee shall deliver an endorsement to the existing
title policy insuring the Mortgage as modified by the assumption agreement, as a valid first lien on the Property and naming the Transferee as owner of the fee or leasehold estate, as applicable, of the Property, which endorsement shall insure that
as of the recording of the assumption agreement, the Property shall not be subject to any additional exceptions or Liens other than Permitted Encumbrances, or if such endorsement is not available in the applicable jurisdiction, other evidence
reasonably satisfactory to Lender confirming all of the foregoing; 
  
 (G) Transferee shall deliver to Lender an opinion of counsel from an independent law firm with respect to the substantive nonconsolidation of Transferee and its constituent entities (partners, members or
shareholders), which law firm and which opinion shall be reasonably satisfactory in all respects to (i) Lender, if a Securitization has not occurred, or (ii) Lender and the Rating Agencies, if a Securitization has occurred; 
  

 66 

 (H) Transferee shall be a Qualified Transferee; 
  
 (I) Transferee and Transferee’s Principal must be able
to satisfy all the covenants set forth in Sections 4.3 and 5.9 hereof, no Release Default or Event of Default shall otherwise occur as a result of such transfer, and Transferee and Transferee’s Principal shall deliver (A) all
organization documentation reasonably requested by Lender, which shall be reasonably satisfactory to Lender, and (B) all certificates, agreements and covenants reasonably required by Lender; 
  
 (J) Following a Securitization, or at such time as the Loan
is scheduled to be included in a Securitization, the Rating Agencies shall have confirmed that the transfer to Transferee will not cause any downgrade in the ratings assigned to such certificates; 
  
 (K) If the Transferee is not a wholly-owned subsidiary of
Principal, each of the Other Properties shall likewise be transferred to such Transferee or a wholly-owned subsidiary of the new Principal pursuant to the provisions of the Other Loan Agreements; and 
  
 (L) All requisite approvals from all applicable Governmental
Authorities and Persons required in connection with such Transfer shall have been obtained. 
  
 (f) Notwithstanding anything to the contrary contained in this Section 5.2.10, Lender’s consent shall not be required for the
financing of Personal Property and Equipment (“Financing Leases”) owned or to be purchased by the applicable Borrower that is used in connection with the operation of the Property, provided Lender has received prior written
notification of such Borrower’s intent to finance such Personal Property and/or Equipment, and provided, further, that (i) any such financing is subject to commercially prudent terms and conditions and at a market rate of
interest, (ii) the Personal Property and/or Equipment financed is readily replaceable without material interference or interruption to the operation of the Property as required pursuant to the provisions of this Agreement and the Mortgage and the
other Loan Documents, (iii) the aggregate amount of annual debt service or lease payments under such Financing Leases is at all times less than $100,000.00 per annum, (iv) the documentation for the Financing Leases shall, among other things, provide
that Lender shall be given written notice of a default thereunder and Lender shall be provided with a reasonable opportunity to cure such defaults and (v) the Financing Leases do not create a Lien on the Property other than the Personal Property
and/or Equipment financed. 
  
 5.2.11
Intentionally Omitted. 
  
 5.2.12
Franchise Provisions. 
  
 (a) Lender
acknowledges and agrees that, as of the Closing Date, (i) Borrower is indirectly owned in whole by Wyndham; (ii) the Property is operated as a “Wyndham” or “Summerfield Suites” hotel and is not subject to a franchise agreement or
other agreement in connection with such operation other than the Management Agreement. Borrower shall obtain 

  

 67 

 
the approval of Lender, which approval shall not be unreasonably withheld or delayed by Lender, before entering into any franchise agreement (the
“Franchise Agreement”) with any franchisor (the “Franchisor”) that provides for, or permits, the operation of the Property under such Franchisor’s brand or “flag”. Any Franchise Agreement must
include, among other things, rights in the Franchisor’s reservation system and a term of not less than the remaining term of the Loan. Borrower shall deliver to Lender any such Franchise Agreement for Lender’s review and approval.

  
 (b) If Borrower shall enter into any
Franchise Agreement, Lender shall receive within thirty (30) days following the execution of such Franchise Agreement a comfort letter from the Franchisor, in which Franchisor shall agree (i) that Lender shall have the right, but not the obligation,
to cure any defaults under the Franchise Agreement, (ii) to give Lender written notice of, and a reasonable time to cure, any default of Borrower under the Franchise Agreement; (iii) not to assert against Lender any defaults which by their nature
are personal to Borrower and are not curable by Lender; (iv) to allow Lender to change managers of the Property; (v) that, if Lender or its affiliate shall acquire title to the Property, Lender or its affiliate shall have an option to succeed to the
interest of Borrower under the Franchise Agreement (or to be granted a new Franchise Agreement on the same terms as the Franchise Agreement) without payment of any fees to Franchisor (other than nominal, processing fees); (vi) that the Franchise
Agreement will remain in effect during any foreclosure proceedings by Lender provided Lender cures all monetary defaults under the Franchise Agreement; (vii) not to modify, cancel, surrender or otherwise terminate the Franchise Agreement during the
Term without the consent of Lender; and (viii) that if Lender or its Affiliate succeeds to Borrower’s interest under the Franchise Agreement, Lender may assign its rights therein to any entity which acquires the Property from Lender or its
Affiliate (subject to Franchisor’s reasonable approval). The foregoing to the contrary notwithstanding, Lender will not unreasonably withhold approval of Franchisor’s standard form of “comfort letter”. 
  
 (c) Borrower shall not, and Borrower shall not permit any
Affiliate to, modify, cancel, surrender or otherwise terminate the Franchise Agreement during the Term without the consent of Lender, such consent not to be unreasonably withheld or delayed; provided that, in connection with a cancellation,
surrender or termination, such Franchise Agreement shall be replaced with a substitute franchise agreement reasonably approved by Lender or such other arrangement for the operation of the Property, reasonably approved by Lender. Borrower shall
promptly deliver to Lender copies of any notices of default sent or received by or on behalf of Borrower or any of its Affiliates under the Franchise Agreement. 
  
 (d) Borrower shall at all times that the Debt is outstanding cause the hotel located on the Property to be
operated as (i) a “Wyndham” or a “Summerfield Suites” hotel (or in the name of any successor entity), or (ii) a hotel franchise of a first class, reputable hotel franchise reasonably acceptable to Lender pursuant to a franchise
agreement and management agreement reasonably acceptable to Lender. 
  
 (e) Borrower shall: 
  

	 	(i)	 promptly perform and/or observe in all material respects all of the covenants and agreements required to be performed and observed 

  

 68 

	 	 
by it under the Franchise Agreement and do all things necessary to preserve and to keep unimpaired its material rights thereunder;

  

	 	(ii)	promptly notify Lender of any default under the Franchise Agreement of which it is aware; 

  

	 	(iii)	promptly deliver to Lender a copy of each financial statement, business plan, capital expenditures plan, notice, report and estimate received by it under the Franchise Agreement;

  

	 	(iv)	promptly enforce the performance and observance in all material respects of all of the covenants and agreements required to be performed and/or observed by the franchisor under the
Franchise Agreement; and 

  

	 	(v)	exercise all rights of renewals or extension of the Franchise Agreement (and Borrower hereby appoints Lender as its attorney-in-fact to exercise such options in the name of and on
behalf of Borrower, which power of attorney shall be irrevocable and shall be deemed to be coupled with an interest). 

  
 ARTICLE 6 
  
 INSURANCE; CASUALTY; CONDEMNATION; REQUIRED REPAIRS 
  
 Section 6.1 Insurance.  
  
 (a) Borrower shall obtain and maintain, or cause to be maintained, insurance for Borrower and the Property providing at least the
following coverages: 
  

	 	(i)	 comprehensive all risk insurance on the Improvements and the Personal Property, including contingent liability from Operation of Building Laws, Demolition Costs and
Increased Cost of Construction Endorsements, in each case (A) in an amount equal to one hundred percent (100%) of the “Full Replacement Cost,” which for purposes of this Agreement shall mean actual replacement value (exclusive of costs of
excavations, foundations, underground utilities and footings) with a waiver of depreciation, but the amount shall in no event be less than the Outstanding Principal Balance; (B) containing an agreed amount endorsement with respect to the
Improvements and Personal Property waiving all co-insurance provisions; (C) for all such insurance coverage, providing for no deductible in excess of One Hundred Thousand and No/100 Dollars ($100,000); and (D) containing an “Ordinance or Law
Coverage” or “Enforcement” endorsement if any of the Improvements or the use of the Property shall at any time constitute legal non-conforming structures or uses. In addition, Borrower shall obtain: (x) if any portion of the
Improvements is 

  

 69 

	 	 
currently or at any time in the future located in a federally designated “special flood hazard area”, flood hazard insurance in an amount equal to
the lesser of (1) the Outstanding Principal Balance or (2) the maximum amount of such insurance available under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994,
as each may be amended or such greater amount as Lender shall require; (y) earthquake insurance in amounts and in form and substance satisfactory to Lender in the event the Property is located in an area with a high degree of seismic activity and
(z) coastal windstorm insurance in amounts and in form and substance satisfactory to Lender (and with deductibles of 3% of the insured value) in the event the Property is located in any coastal region, provided that the insurance pursuant to
clauses (x), (y) and (z) hereof shall be on terms consistent with the comprehensive all risk insurance policy required under this subsection (i). Notwithstanding the foregoing, if the insurance coverage required herein is maintained by Wyndham
through a blanket policy of insurance and the deductible for such insurance coverage is greater than $100,000.00, Borrower may satisfy the deductible requirements herein by delivering to Lender a Letter of Credit in an amount equal to the difference
between such deductible, as the same may be adjusted during the term of this Loan, as extended, and $100,000.00, and Lender shall, in the event of a casualty, apply such security from time to time if requested to do so by Borrower to pay for any
Restoration or, if an Event of Default occurs, such Letter of Credit shall constitute additional collateral for the Loan and Lender may apply such sums as otherwise provided in this Agreement. 

  

	 	(ii)	commercial general liability insurance, including a broad form comprehensive general liability endorsement and coverages against claims for personal injury, bodily injury, death or
property damage occurring upon, in or about the Property, such insurance (A) to be on the so-called “occurrence” form with a combined limit of not less than Two Million and No/100 Dollars ($2,000,000) in the aggregate and One Million and
No/100 Dollars ($1,000,000) per occurrence (and, if on a blanket policy, containing an “Aggregate Per Location” endorsement); (B) to continue at not less than the aforesaid limit until required to be changed by Lender in writing by reason
of changed economic conditions making such protection inadequate; and (C) to cover at least the following hazards: (1) premises and operations; (2) products and completed operations on an “if any” basis; (3) independent contractors; (4)
blanket contractual liability for all legal contracts; and (5) contractual liability covering the indemnities contained in Article 8 of the Mortgage to the extent the same is available; 

  

 70 

	 	(iii)	rental loss and/or business income interruption insurance (A) with loss payable to Lender; (B) covering all risks required to be covered by the insurance provided for in subsection
(i) above; (C) containing an extended period of indemnity endorsement which provides that after the physical loss to the Improvements and Personal Property has been repaired, the continued loss of income will be insured until such income either
returns to the same level it was at prior to the loss, or the expiration of twelve (12) months from the date that the Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that the policy may expire
prior to the end of such period; and (D) in an amount equal to one hundred percent (100%) of the projected Gross Income from Operations for a period of eighteen (18) months from the date of such Casualty (assuming such Casualty had not occurred) and
notwithstanding that the policy may expire at the end of such period. The amount of such business income insurance shall be determined prior to the date hereof and at least once each year thereafter based on Borrower’s reasonable estimate of
the Gross Income from Operations for the succeeding eighteen (18) month period. Nothing set forth in this Agreement shall be deemed to relieve Borrower of its obligations to pay the obligations secured by the Loan Documents on the respective dates
of payment provided for in the Note and the other Loan Documents except to the extent such amounts are actually paid out of the proceeds of such business income insurance; 

  

	 	(iv)	at all times during which structural construction, repairs or alterations are being made with respect to the Improvements, and only if the Property coverage form does not otherwise
apply, (A) owner’s contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the above mentioned commercial general liability insurance policy; and (B) the insurance provided for in
subsection (i) above written in a so-called builder’s risk completed value form (1) on a non-reporting basis, (2) against all risks insured against pursuant to subsection (i) above, (3) including permission to occupy the Property, and (4) with
an agreed amount endorsement waiving co-insurance provisions; 

  

	 	(v)	if the Property includes commercial property, worker’s compensation insurance with respect to any employees of Borrower, as required by any Governmental Authority or Legal
Requirement; 

  

	 	(vi)	 comprehensive boiler and machinery insurance, if applicable, in amounts as shall be reasonably required by Lender on terms 

  

 71 

	 	 
consistent with the commercial property insurance policy required under subsection (i) above; 

  

	 	(vii)	umbrella liability insurance in an amount not less than Twenty Million and No/100 Dollars ($20,000,000.00) per occurrence on terms consistent with the commercial general liability
insurance policy required under subsection (ii) above; 

  

	 	(viii)	motor vehicle liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits per occurrence, including umbrella coverage, of
One Million and No/100 Dollars ($1,000,000.00); 

  

	 	(ix)	if the Property is or becomes a legal “non-conforming” use, ordinance or law coverage and insurance coverage to compensate for the cost of demolition or rebuilding of the
undamaged portion of the Property along with any reduced value and the increased cost of construction in amounts as requested by Lender; 

  

	 	(x)	at all times during the term of the Loan, the commercial property and business income insurance required under Sections 6.1(a)(i) and (iii) above shall cover perils of
foreign terrorism and acts of foreign terrorism and Borrower shall maintain commercial property and business income insurance for loss resulting from perils and acts of foreign terrorism on terms (including amounts) reasonably acceptable to Lender
for so long as such coverage is (A) commercially available and (B) provided that such insurance does not exceed $100,000.00 in the aggregate for the Property and the Other Properties. If the cost of such terrorism insurance exceeds $100,000.00 in
the aggregate for the Property and the Other Properties, Borrower shall obtain the maximum amount of acceptable insurance possible for an amount equal to $100,000.00 in the aggregate for the Property and the Other Properties; and

  

	 	(xi)	upon sixty (60) days’ notice, such other reasonable insurance and in such reasonable amounts as Lender from time to time may reasonably request against such other insurable
hazards which at the time are commonly insured against for properties similar to the Property located in or around the region in which the Property is located. 

  
 (b) All insurance provided for in Section 6.1(a) shall be obtained under valid and enforceable
policies (collectively, the “Policies” or in the singular, the “Policy”), and shall be subject to the approval of Lender as to insurance companies, amounts, deductibles, loss payees and insureds. The Policies shall
be issued by financially sound and responsible insurance companies authorized to do business in the State and having a claims paying ability rating of “A” or better. The Policies described in Section 6.1(a) (other than those
strictly limited to liability 

  

 72 

 
protection) shall designate Lender as loss payee. Not less than ten (10) days prior to the expiration dates of the Policies theretofore furnished to Lender,
certificates of insurance evidencing the Policies accompanied by evidence satisfactory to Lender of payment of the premiums due thereunder (the “Insurance Premiums”), shall be delivered by Borrower to Lender. 
  
 (c) Any blanket insurance Policy shall specifically allocate
to the Property the amount of coverage from time to time required hereunder and shall otherwise provide the same protection as would a separate Policy insuring only the Property in compliance with the provisions of Section 6.1(a). 

 
 (d) All Policies provided for or contemplated by
Section 6.1(a), except for the Policy referenced in Section 6.1(a)(v), shall name Borrower as the insured and Lender (and its affiliates) as the additional insured, as its interests may appear, and in the case of property damage,
boiler and machinery, flood and earthquake insurance, shall contain a so-called New York standard non-contributing mortgagee clause in favor of Lender providing that the loss thereunder shall be payable to Lender. 
  
 (e) All Policies provided for in Section 6.1 shall
contain clauses or endorsements to the effect that: 
  

	 	(i)	no act or negligence of Borrower, or anyone acting for Borrower, or of any tenant or other occupant, or failure to comply with the provisions of any Policy, which might otherwise
result in a forfeiture of the insurance or any part thereof, shall in any way affect the validity or enforceability of the insurance insofar as Lender is concerned; 

  

	 	(ii)	the Policies shall not be materially changed (other than to increase the coverage provided thereby) or canceled without at least thirty (30) days’ notice (or ten (10)
days’ notice with respect to non-payment) to Lender and any other party named therein as an additional insured; 

  

	 	(iii)	the issuers thereof shall give notice to Lender if the Policies have not been renewed fifteen (15) days prior to its expiration; and 

  

	 	(iv)	Lender shall not be liable for any Insurance Premiums thereon or subject to any assessments thereunder. 

  
 (f) If at any time Lender is not in receipt of written evidence that all Policies are in full force and
effect, Lender shall give notice (which notice may be oral) thereof to Borrower and Borrower shall within two (2) Business Days of such notice, deliver such written evidence as Lender shall reasonably require that all policies are in full force and
effect. If Borrower does not provide Lender with such evidence that all Policies are in full force and effect within two (2) Business Days of Lender’s notice, Lender shall have the right, without further notice to Borrower, to take such action
as Lender deems necessary to protect its interest in the Property, including, without limitation, the obtaining of such insurance coverage as Lender in its 

  

 73 

 
sole discretion deems appropriate. All premiums incurred by Lender in connection with such action or in obtaining such insurance and keeping it in effect
shall be paid by Borrower to Lender upon demand and, until paid, shall be secured by the Mortgage and shall bear interest at the Default Rate. 
  
 Section 6.2 Casualty. If the Property shall be damaged or destroyed, in whole or in part, by fire or other casualty (a
“Casualty”), Borrower shall (a) give prompt notice of such damage to Lender, and (b) promptly commence and diligently prosecute the completion of the Restoration so that the Property resembles, as nearly as possible, the condition
the Property was in immediately prior to such Casualty, with such alterations as may be reasonably approved by Lender and otherwise in accordance with Section 6.4. Borrower shall pay all costs of such Restoration whether or not such costs are
covered by insurance. Lender may, but shall not be obligated to make proof of loss if not made promptly by Borrower. In addition, Lender may approve (not to be unreasonably withheld or delayed) any settlement with any insurance companies with
respect to any Casualty in which the Net Proceeds or the costs of completing the Restoration are equal to or greater than Five Hundred Thousand and No/100 Dollars ($500,000.00) and Borrower shall deliver to Lender all instruments required by Lender
to permit such participation. 
  
 Section 6.3 Condemnation.
Borrower shall promptly give Lender notice of the actual or threatened commencement of any proceeding in respect of Condemnation and shall deliver to Lender copies of any and all papers served in connection with such proceedings. Lender may
participate in any such proceedings, and Borrower shall from time to time deliver to Lender all instruments requested by Lender to permit such participation. Borrower shall, at its expense, diligently prosecute any such proceedings, and shall
consult with Lender, its attorneys and experts, and cooperate with them in the carrying on or defense of any such proceedings. Notwithstanding any taking by any public or quasi-public authority through Condemnation or otherwise (including, but not
limited to, any transfer made in lieu of or in anticipation of the exercise of such taking), Borrower shall continue to perform the Obligations at the time and in the manner provided in this Agreement and the other Loan Documents and the Outstanding
Principal Balance shall not be reduced until any Award shall have been actually received and applied by Lender, after the deduction of expenses of collection, to the reduction or discharge of the Obligations. Lender shall not be limited to the
interest paid on the Award by the applicable Governmental Authority but shall be entitled to receive out of the Award interest at the rate or rates provided herein or in the Note. If the Property or any portion thereof is taken by a Governmental
Authority, Borrower shall promptly commence and diligently prosecute Restoration and otherwise comply with the provisions of Section 6.4. If the Property is sold, through foreclosure or otherwise, prior to the receipt by Lender of the Award,
Lender shall have the right, whether or not a deficiency judgment on the Note shall have been sought, recovered or denied, to receive the Award, or a portion thereof sufficient to pay the Debt.  
  
 Section 6.4 Restoration. The following provisions shall apply in
connection with the Restoration: 
  
 (a) If the
Net Proceeds shall be less than Five Hundred Thousand and No/100 Dollars ($500,000.00) and the costs of completing the Restoration shall be less than Five Hundred Thousand and No/100 Dollars ($500,000.00), the Net Proceeds will be disbursed by

  

 74 

 
Lender to Borrower upon receipt, provided that all of the conditions set forth in Section 6.4(b)(i) are met and Borrower delivers to Lender a
written undertaking to expeditiously commence and to satisfactorily complete with due diligence the Restoration in accordance with the terms of this Agreement. 
  

(b) If the Net Proceeds are equal to or greater than Five Hundred Thousand and No/100 Dollars ($500,000.00) or the costs of completing
the Restoration is equal to or greater than One Million and No/100 Dollars ($1,000,000.00), the Net Proceeds will be held by Lender and Lender shall make the Net Proceeds available for the Restoration in accordance with the provisions of this
Section 6.4. The term “Net Proceeds” for purposes of this Section 6.4 shall mean: (i) the net amount of all insurance proceeds received by Lender pursuant to Section 6.1 (a)(i), (iv), (vi),
(ix) and (x) as a result of such damage or destruction, after deduction of its reasonable costs and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Insurance Proceeds”),
or (ii) the net amount of the Award, after deduction of Lender’s reasonable costs and expenses (including, but not limited to, reasonable counsel costs and fees), if any, in collecting same (“Condemnation Proceeds”), whichever
the case may be. 
  

	 	(i)	The Net Proceeds shall be made available to Borrower for Restoration upon the approval of Lender in its sole discretion that the following conditions are met:

  
 (A) no Event of Default shall
have occurred and be continuing; 
  
 (B) (1) in
the event the Net Proceeds are Insurance Proceeds, less than twenty-five percent (25%) of the total floor area of the Improvements on the Property has been damaged, destroyed or rendered unusable as a result of such Casualty, or (2) in the event the
Net Proceeds are Condemnation Proceeds, less than ten percent (10%) of the land constituting the Property is taken, and such land is located along the perimeter or periphery of the Property, and no material portion of the Improvements is located on
such land; 
  
 (C) Borrower shall commence
Restoration as soon as reasonably practicable (but in no event later than sixty (60) days after such Casualty or Condemnation, whichever the case may be, occurs) and shall diligently pursue the same to satisfactory completion (it being agreed that
the development of Building Plans shall constitute commencement of the Restoration); 
  
 (D) Lender shall be satisfied that any operating deficits, including all scheduled payments of principal and interest under the Note,
which will be incurred with respect to the Property as a result of the occurrence of any such Casualty or Condemnation, whichever the case may be, will be covered out of (1) the Net Proceeds, (2) the insurance coverage referred to in Section
6.1(a)(iii), if applicable, or (3) by other funds of Borrower; 
  

 75 

 (E) Lender shall be satisfied that Restoration will be completed on or before the
earliest to occur of (1) three (3) months prior to the Maturity Date as the same is extended pursuant to Section 2.7 hereof (and if necessary to satisfy this requirement, the period set forth in Section 2.7 during which Borrower may
exercise any option to extend the term of the Loan shall be extended to permit Borrower to exercise such extension option, but in no event more than twelve (12) months prior to the then Maturity Date, (2) such time as may be required under
applicable Legal Requirements, or (3) the expiration of the insurance coverage referred to in Section 6.1(a)(iii) unless Borrower has deposited with Lender prior to the commencement of the Restoration sums sufficient after the expiration of
such insurance to (x) operate the Property in a manner consistent with the manner in which the Property was operated immediately prior to such Casualty or Condemnation and (y) pay all sums as they become due under the Loan in a timely manner;

  
 (F) the Property and the use thereof after
Restoration will be in compliance with and permitted under all applicable Legal Requirements; 
  
 (G) Restoration shall be done and completed by Borrower in an expeditious and diligent fashion and in compliance with all applicable Legal
Requirements; 
  
 (H) such Casualty or
Condemnation, as applicable, does not result in the loss of access to the Property or the related Improvements; 
  
 (I) upon completion of the Restoration, the projected Net Operating Income for the following twelve (12) month period as reasonably
estimated by Lender, shall be sufficient to achieve a Debt Service Coverage Ratio of at least 1.50 to 1.00 (and for purposes of this clause (I) only, the Debt Service Coverage Ratio shall be calculated at the interest rate computed in accordance
with the provisions of this Agreement at a deemed annual rate of 8.20%); 
  
 (J) Borrower shall deliver, or cause to be delivered, to Lender a signed detailed budget approved in writing by Borrower’s architect or engineer stating the entire cost of completing the Restoration; and

  
 (K) the Net Proceeds together with any cash
or cash equivalent deposited by Borrower with Lender are sufficient in Lender’s reasonable discretion to cover the cost of Restoration. 
  

	 	(ii)	 The Net Proceeds shall be paid directly to Lender for deposit in an interest-bearing account and, until disbursed in accordance with the provisions of this
Section 6.4(b), shall constitute additional security for the Debt and the Other Obligations. The Net Proceeds shall be disbursed by Lender to, or as directed by, Borrower from time to time during the course of Restoration, upon receipt of
evidence satisfactory to Lender that (A) all materials installed and 

  

 76 

	 	 
work and labor performed (except to the extent that they are to be paid for out of the requested disbursement) in connection with Restoration have been paid
for in full, and (B) there exist no notices of pendency, stop orders, mechanic’s or materialman’s liens or notices of intention to file same, or any other liens or encumbrances of any nature whatsoever on the Property which have not either
been fully bonded to the satisfaction of Lender and discharged of record or in the alternative fully insured to the satisfaction of Lender by the Title Company; provided, however, Lender shall disburse to, or as directed by, Borrower
up to ten percent (10%) of the Net Proceeds received by Lender to fund deposits to contractors, subcontractors and/or materialmen when necessary, to secure timely performance of the Restoration, due to the occurrence of a catastrophic event such as
a hurricane or earthquake, upon receipt of evidence satisfactory to Lender that such deposits are required to be paid. Notwithstanding the foregoing, Lender shall have no obligation under this paragraph unless and until Net Proceeds have been
received by it and Borrower has complied with the provisions of the preceding sentence. 

  

	 	(iii)	All plans and specifications required in connection with the Restoration shall be subject to prior review and reasonable acceptance in all respects by Lender and by an independent
consulting engineer selected by Lender (the “Casualty Consultant”). In connection with the delivery of the plans and specifications to Lender and/or Casualty Consultant by Borrower, if Borrower marks such delivery with a legend
marked in not less than fourteen (14) point bold face type, underlined, in all capital letters “ATTACHED PLANS AND SPECIFICATIONS DEEMED APPROVED IF NO RESPONSE WITHIN FIFTEEN (15) BUSINESS DAYS”, and Lender and/or the Casualty Consultant
fails to respond to the delivery of such plans and specifications within such fifteen (15) Business Day period, Lender shall be deemed to have approved such Plans and Specifications. Lender shall have the use of the plans and specifications and all
permits, licenses and approvals required or obtained in connection with the Restoration. The identity of the contractors, subcontractors and materialmen engaged in the Restoration, as well as the contracts under which they have been engaged, shall
be subject to prior review and reasonable acceptance by Lender and the Casualty Consultant. All reasonable costs and expenses incurred by Lender in connection with making the Net Proceeds available for Restoration including, without limitation,
reasonable counsel fees and disbursements and the reasonable Casualty Consultant’s fees, shall be paid by Borrower. 

  

 77 

	 	(iv)	In no event shall Lender be obligated to make disbursements of the Net Proceeds in excess of an amount equal to the costs actually incurred from time to time for work in place as
part of the Restoration, as certified by the Casualty Consultant, minus the Casualty Retainage. The term “Casualty Retainage” shall mean, as to each contractor, subcontractor or materialman engaged in the Restoration, an amount
equal to ten percent (10%) of the costs actually incurred for work in place as part of the Restoration, as certified by the Casualty Consultant, until Restoration has been fifty percent (50%) completed, at which point no additional Retainage shall
be required (i.e., upon completion of the Restoration the Retainage shall equal 5% of the cost of the work). The Casualty Retainage shall in no event, and notwithstanding anything to the contrary set forth above in this Section 6.4(b), be
less than the amount actually held back by Borrower from contractors, subcontractors and materialmen engaged in the Restoration. The Casualty Retainage shall not be released until the Casualty Consultant certifies to Lender that Restoration has been
completed in accordance with the provisions of this Section 6.4(b) and that all approvals necessary for the re-occupancy and use of the Property have been obtained from all appropriate Governmental Authorities, and Lender receives evidence
reasonably satisfactory to Lender that the costs of Restoration have been paid in full or will be paid in full out of the Casualty Retainage; provided, however, that Lender will release the portion of the Casualty Retainage being held
with respect to any contractor, subcontractor or materialman engaged in the Restoration as of the date upon which the Casualty Consultant certifies to Lender that the contractor, subcontractor or materialman has satisfactorily completed all work and
has supplied all materials in accordance with the provisions of the contractor’s, subcontractor’s or materialman’s contract, the contractor, subcontractor or materialman delivers the lien waivers and evidence of payment in full of all
sums due to the contractor, subcontractor or materialman as may be reasonably requested by Lender or by the Title Company, and, provided that the State in which the Property is located is a jurisdiction in which the priority of the Lien of the
Mortgage will not be affected by intervening mechanic’s liens, the Lender receives an update to the Title Insurance Policy indicating the continued priority of the Lien of the Mortgage. If required by Lender, the release of any such portion of
the Casualty Retainage shall be approved by the surety company, if any, which has issued a payment or performance bond with respect to the contractor, subcontractor or materialman. 

  

	 	(v)	Lender shall not be obligated to make disbursements of the Net Proceeds more frequently than once every calendar month. 

  

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	 	(vi)	If at any time the Net Proceeds or the undisbursed balance thereof shall not, in the opinion of Lender in consultation with the Casualty Consultant, be sufficient to pay in full the
balance of the costs which are reasonably estimated by the Casualty Consultant to be incurred in connection with the completion of the Restoration, Borrower shall deposit the deficiency (the “Net Proceeds Deficiency”) with Lender
before any further disbursement of the Net Proceeds shall be made. The Net Proceeds Deficiency deposited with Lender shall be held by Lender and shall be disbursed for costs actually incurred in connection with the Restoration on the same conditions
applicable to the disbursement of the Net Proceeds, and until so disbursed pursuant to this Section 6.4(b) shall constitute additional security for the Debt and the Other Obligations. 

  

	 	(vii)	The excess, if any, of the Net Proceeds and the remaining balance, if any, of the Net Proceeds Deficiency deposited with Lender after the Casualty Consultant certifies to Lender
that Restoration has been completed in accordance with the provisions of this Section 6.4(b), and the receipt by Lender of evidence satisfactory to Lender that all costs incurred in connection with the Restoration have been paid in full,
shall be remitted by Lender to Borrower, provided no Event of Default shall have occurred and shall be continuing. 

  
 (c) All Net Proceeds not required (i) to be made available for Restoration, or (ii) to be returned to Borrower as excess Net Proceeds
pursuant to Section 6.4(b)(vii) may be retained and applied by Lender in accordance with Section 2.4.2 hereof toward the payment of the Outstanding Principal Balance whether or not then due and payable in such order, priority and
proportions as Lender in its sole discretion shall deem proper, or, in the sole discretion of Lender, the same may be paid, either in whole or in part, to Borrower for such purposes as Lender shall approve, in its sole discretion. 
  
 (d) In the event of foreclosure of the Mortgage, or other
transfer of title to the Property in extinguishment in whole or in part of the Debt, all right, title and interest of Borrower in and to the Policies that are not blanket Policies then in force concerning the Property and all proceeds payable
thereunder shall thereupon vest in the purchaser at such foreclosure or Lender or other transferee in the event of such other transfer of title. 
  
 (e) Intentionally Omitted. 
  

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 ARTICLE 7 
  

RESERVE FUNDS 
  
 Section 7.1 Required Repair Funds. 
  
 7.1.1 Deposits. Borrower shall perform the repairs at the Property as more particularly set forth on Schedule II hereto (such
repairs hereinafter collectively referred to as “Required Repairs”). Borrower shall complete the Required Repairs on or before the required deadline for each repair as set forth on Schedule II hereto, as the same may be extended due
to Unavoidable Delays. It shall be an Event of Default under this Agreement if (a) Borrower does not complete the Required Repairs by the required deadline for each repair as set forth on Schedule II (as the same may be extended by Unavoidable
Delays), or (b) Borrower does not satisfy each condition contained in Section 7.1.2 hereof. Upon the occurrence of such an Event of Default, Lender, at its option, may withdraw all Required Repair Funds from the Required Repair Account and
Lender may apply such funds either to completion of the Required Repairs. Lender’s right to withdraw and apply Required Repair Funds shall be in addition to all other rights and remedies provided to Lender under this Agreement and the other
Loan Documents. On the Closing Date, Borrower shall deposit with Lender the amount set forth on such Schedule II hereto to perform the Required Repairs multiplied by one hundred twenty-five percent (125%). Amounts so deposited with Lender shall be
held by Lender in accordance with Section 7.5 hereof. Amounts so deposited shall hereinafter be referred to as Borrower’s “Required Repair Funds” and the account in which such amounts are held shall hereinafter be
referred to as Borrower’s “Required Repair Account.” 
  
 7.1.2 Release of Required Repair Funds. (a) Lender shall disburse to Borrower the Required Repair Funds from the Required Repair Account from time to time, but not more frequently than once in any thirty (30)
day period, upon satisfaction by Borrower of each of the following conditions with respect to each disbursement: (i) Borrower shall submit a written request for payment to Lender at least fifteen (15) days prior to the date on which Borrower
requests such payment be made, which request specifies the Required Repairs to be paid, (ii) on the date such request is received by Lender and on the date such payment is to be made, no Release Default or Event of Default shall exist and remain
uncured, (iii) Lender shall have received an Officer’s Certificate (A) stating that all Required Repairs to be funded by the requested disbursement have been completed in a good and workmanlike manner and in accordance with all applicable
federal, state and local laws, rules and regulations, such Officer’s Certificate to be accompanied by a copy of any license, permit or other approval by any Governmental Authority required to commence and/or complete the Required Repairs, (B)
identifying each Person that supplied materials or labor in connection with the Required Repairs to be funded by the requested disbursement, and (C) stating that each such Person has been paid in full or will be paid in full upon such disbursement
for work completed and/or materials furnished to date, and, if the request for disbursement exceeds $100,000 such Officer’s Certificate to be accompanied by lien waivers or other evidence of payment satisfactory to Lender and the Title Company,
(iv) Lender shall have received a title search indicating that the Property is free from all liens, claims and other encumbrances not previously approved by Lender, (v) Lender shall have received such other evidence as Lender shall reasonably
request that the Required Repairs to be funded by the requested disbursement have been completed and 

  

 80 

 
are paid for or will be paid upon such disbursement to Borrower. Lender shall not be required to make disbursements from the Required Repair Account unless
such requested disbursement is in an amount greater than $5,000 (or a lesser amount if the total amount in the Required Repair Account is less than $5,000, in which case only one disbursement of the amount remaining in the account shall be made) and
such disbursement shall be made only upon satisfaction of each condition contained in this Section 7.1.2. 
  
 (b) Nothing in this Section 7.1.2 shall (i) make Lender responsible for performing or completing any Required Repairs; (ii) require
Lender to expend funds in addition to the Required Repairs Funds to complete any Required Repairs; (iii) obligate Lender to proceed with any Required Repairs; or (iv) obligate Lender to demand from Borrower additional sums to complete any Required
Repairs. 
  
 (c) Borrower shall permit Lender and
Lender’s agents and representatives (including Lender’s engineer, architect or inspector) or third parties to enter onto the Property during normal business hours (subject to the rights of tenants under their Leases) to inspect the
progress of any Required Repairs and all materials being used in connection therewith and to examine all plans and shop drawings relating to such Required Repairs, such inspections to be made with minimal interference with the conduct of
Tenant’s business. Borrower shall cause all contractors and subcontractors to cooperate with Lender or Lender’s representatives or such other Persons described above in connection with inspections described in this Section 7.1.2(c).

  
 (d) If a disbursement will exceed
$100,000.00, Lender may require an inspection of the Property at Borrower’s expense prior to making a disbursement of Required Repairs Funds in order to verify completion of the Required Repairs for which reimbursement is sought. Lender may
require that such inspection be conducted by an appropriate independent qualified professional selected by Lender and may require a certificate of completion by an independent qualified professional architect acceptable to Lender prior to the
disbursement of Required Repairs Funds. Borrower shall pay the reasonable expense of the inspection as required hereunder, whether such inspection is conducted by Lender or by an independent qualified professional architect. 
  
 (e) In addition to any insurance required under the Loan
Documents, Borrower shall provide or cause to be provided worker’s compensation insurance, builder’s risk, and public liability insurance and other insurance to the extent required under applicable law in connection with the Required
Repairs. All such policies shall be in form and amount reasonably satisfactory to Lender. 
  
 7.1.3 Balance in Required Repair Account. The insufficiency of any balance in the Required Repair Account shall not relieve
Borrower from its obligation to perform the Required Repairs in a good and workmanlike manner and in accordance with all Legal Requirements. 
  
 Section 7.2 Tax and Insurance Escrow Funds. On the date hereof, Borrower shall deposit with Lender $270,510.83 on account of the Taxes next coming
due and $90,111.90 on account of the Insurance Premiums next coming due. Additionally, Borrower shall pay to Lender on each Payment Date (a) one-twelfth of the Taxes that Lender estimates will be payable 

  

 81 

 
during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their
respective due dates, and (b) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the Policies upon the expiration thereof in order to accumulate with Lender sufficient funds to pay
all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies (the foregoing amounts deposited with Lender on the date hereof and in clauses (a) and (b) above are hereinafter called the “Tax and Insurance
Escrow Funds”). The Tax and Insurance Escrow Funds and the payment of the monthly Debt Service, shall be added together and shall be paid as an aggregate sum by Borrower to Lender. Lender will apply the Tax and Insurance Escrow Funds to
payments of Taxes and Insurance Premiums required to be made by Borrower pursuant to Section 5.1.2 hereof and under the Mortgage. In making any payment relating to the Tax and Insurance Escrow Funds, Lender may do so according to any bill,
statement or estimate procured from the appropriate public office (with respect to Taxes) or insurer or agent (with respect to Insurance Premiums), without inquiry into the accuracy of such bill, statement or estimate or into the validity of any
tax, assessment, sale, forfeiture, tax lien or title or claim thereof. If the amount of the Tax and Insurance Escrow Funds shall exceed the amounts due for Taxes and Insurance Premiums pursuant to Section 5.1.2 hereof, Lender shall, following
written request by Borrower, promptly return any excess to Borrower. Any amount remaining in the Tax and Insurance Escrow Funds after the Debt has been paid in full shall be returned to Borrower. In allocating such excess, Lender may deal with the
Person shown on the records of Lender to be the owner of the Property. If at any time Lender reasonably determines that the Tax and Insurance Escrow Funds are not or will not be sufficient to pay Taxes and Insurance Premiums by the dates set forth
in (a) and (b) above, Lender shall notify Borrower of such determination and Borrower shall increase its monthly payments to Lender by the amount that Lender estimates is sufficient to make up the deficiency at least thirty (30) days prior to the
due date of the Taxes and/or thirty (30) days prior to expiration of the Policies, as the case may be. 
  
 Section 7.3 FF&E Reserve. 
  
 7.3.1 FF&E Reserve Funds. Borrower shall deposit with Lender on the Closing Date one-twelfth of the amount of the Approved
FF&E Budget (the “FF&E Reserve Deposit”). The amount of the FF&E Reserve Deposit shall be recalculated annually during the term of the Loan, as of January 1 of each year (or as soon thereafter as Gross Income from
Operations for the preceding year shall be determined to Lender’s reasonable satisfaction) such that the FF&E Reserve Deposit shall be equal to four (4%) percent of the prior year’s Gross Income from Operations divided by twelve (12).
Amounts so deposited shall hereinafter be referred to as Borrower’s “FF&E Reserve Funds” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “FF&E Reserve
Account.” Within thirty (30) days following the end of each calendar quarter, Borrower shall provide to Lender a preliminary report with respect to the expenditures made by or on behalf of Borrower with respect to the Property for FF&E
during such calendar quarter. In the event that the lesser of (a) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual FF&E Budget is not less than four (4%) percent of the Gross Income from Operations for
such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, exceeds the actual expenditures made by Borrower for FF&E for such quarter, Borrower shall deposit an amount equal to any such difference in the
FF&E Reserve Account to be held as FF&E Reserve 

  

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Funds to be disbursed pursuant to the provisions of this Section 7.3. Notwithstanding the foregoing, the amount of any such deposit required to be
made by Borrower shall be reduced by the amount of any actual expenditure made by Borrower for any FF&E completed prior to the calendar quarter in which such FF&E was scheduled to be made pursuant to the Approved Annual FF&E Budget. If
the actual expenditures made by Borrower for FF&E exceeds the lesser of (x) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual FF&E Budget is not less than four (4%) percent of the Gross Income from
Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, Lender shall reimburse Borrower for such excess to the extent that funds are available from the FF&E Reserve Account within
fifteen (15) days from Borrower’s request. To the extent there are not sufficient funds in the FF&E Reserve Account to reimburse Borrower for any excess actual expenditures during such calendar quarter, such excess expenditures shall be
added to the actual expenditures for the next calendar quarter in the determination of any amounts required to be deposited in the FF&E Reserve Account for such calendar quarter. In lieu of making any required deposits to the FF&E Reserve
Account (other than the FF&E Reserve Deposit), Borrower may deliver to Lender a Letter of Credit in an amount equal to the amount that is required to be deposited into the FF&E Reserve Account. Such Letter of Credit shall constitute
additional collateral for the Loan and Lender shall have the right to draw down upon such Letter of Credit and apply the proceeds thereof for the purposes set forth in the Approved FF&E Budget if Borrower fails to do so within a reasonable time
after notice from Lender, or Lender shall have the right to draw down upon such Letter of Credit and apply the proceeds thereof as otherwise provided in this Agreement following an Event of Default. All earnings or interest on the FF&E Reserve
Funds shall be and become part of the FF&E Reserve Funds and shall be disbursed as provided in this Section 7.3. 
  
 7.3.2 Disbursements from FF&E Reserve Account. Lender shall make disbursements from the FF&E Reserve Account as provided in
Section 7.3.1 following request by Borrower, and, if required by Lender for disbursements in excess of $100,000.00 for a single item, lien waivers and releases from all parties furnishing materials and/or services in connection with the
requested payment. Lender may require an inspection of the Property at Borrower’s expense prior to making a monthly disbursement in order to verify completion of replacements and repairs of items in excess of $100,000.00 for which reimbursement
is sought. 
  
 7.3.3 Balance in the FF&E
Account. The insufficiency of any balance in the FF&E Reserve Account shall not relieve Borrower from its obligation to fulfill all preservation and maintenance covenants in the Loan Documents. 
  
 Section 7.4 Intentionally Omitted. 
  
 Section 7.5 Debt Service Reserve. 
  
 7.5.1 Debt Service Reserve Funds. Borrower shall
deposit with Lender on the Closing Date the sum of $272,650.00 (the “Debt Service Reserve”). Amounts so deposited shall hereinafter be referred to as the “Debt Service Reserve Funds” and the account in which such
amounts are held shall hereinafter be referred to as the “Debt Service Reserve Account.” The Debt Service Reserve will be available for use by Borrower in the event that Net Cash Flow from the Property for any month shall be less
than Debt Service for such month. In lieu of 

  

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making any required deposits to the Debt Service Reserve Account, Borrower may deliver to Lender a Letter of Credit in an amount equal to the amount that is
required to be deposited into the Debt Service Reserve Account. All earnings or interest on the Debt Service Reserve Fund shall be and become part of such Debt Service Reserve Fund and shall be disbursed as provided in this Section 7.5.

  
 In the event Net Cash Flow equals or exceeds
$8,000,000.00 for the preceding twelve (12) consecutive month period, the Debt Service Reserve Funds will be released to Borrower following Borrower’s written request therefor. 
  
 7.5.2 Disbursements from Debt Service Reserve Account. Provided no Release Default or Event of
Default exists, Lender shall make disbursements from the Debt Service Reserve Account as requested by Borrower to the extent such funds are available, no more frequently than once in any thirty (30) day period in the event that Net Cash Flow is less
than Debt Service for such month. 
  
 7.5.3
Balance in the Debt Service Account. The insufficiency of any balance in the Debt Service Reserve Account shall not relieve Borrower from its obligation to pay the Monthly Interest Payment when due hereunder. 
  
 Section 7.6 Reserve Funds, Generally. 
  
 (a) Borrower grants to Lender a first-priority perfected
security interest in all of the Reserve Funds and any and all monies now or hereafter deposited in each Reserve Fund as additional security for the Obligations. Until expended or applied in accordance herewith, the Reserve Funds shall constitute
additional security for payment of the Obligations. Upon the occurrence of an Event of Default, Lender may, in addition to any and all other rights and remedies available to Lender, apply any sums then present in any or all of the Reserve Funds to
the reduction of the Outstanding Principal Balance in any order in its sole discretion. The Reserve Funds shall not constitute trust funds and may be commingled with other monies held by Lender. 
  
 (b) Borrower shall not, without obtaining the prior consent
of Lender, further pledge, assign or grant any security interest in any Reserve Fund or the monies deposited therein or permit any lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements, except those
naming Lender as the secured party, to be filed with respect thereto. 
  
 (c) The Reserve Funds shall be held in an Eligible Account and shall bear interest at a money market rate selected by Lender. All interest or other earnings on a Reserve Fund shall be added to and become a part of
such Reserve Fund and shall be disbursed in the same manner as other monies deposited in such Reserve Fund. Borrower shall have the right to direct Lender to invest sums on deposit in the Eligible Account in Permitted Investments
provided (a) such investments are then regularly offered by Lender for accounts of this size, category and type, (b) such investments are permitted by applicable federal, state and local rules, regulations and laws, (c) the maturity date of
the Permitted Investment is not later than the date on which the applicable Reserve Funds are required for payment of an obligation for which such 

  

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Reserve Fund was created, and (d) no Event of Default shall have occurred and be continuing. Borrower shall be responsible for payment of any federal, state
or local income or other tax applicable to the interest or income earned on the Reserve Funds. No other investments of the sums on deposit in the Reserve Funds shall be permitted except as set forth in this Section 7.5. Borrower shall bear
all reasonable costs associated with the investment of the sums in the account in Permitted Investments. Such costs shall be deducted from the income or earnings on such investment, if any, and to the extent such income or earnings shall not be
sufficient to pay such costs, such costs shall be paid by Borrower promptly on demand by Lender. Lender shall have no liability for the rate of return earned or losses incurred on the investment of the sums in Permitted Investments. 
  
 (d) Borrower shall indemnify Lender and hold Lender harmless
from and against any and all actions, suits, claims, demands, liabilities, losses, damages, obligations and costs and expenses (including litigation costs and reasonable attorneys fees and expenses) arising from or in any way connected with the
Reserve Funds or the performance of the obligations for which the Reserve Funds were established. Borrower shall assign to Lender all rights and claims Borrower may have against all Persons supplying labor, materials or other services which are to
be paid from or secured by the Reserve Funds; provided, however, that Lender may not pursue any such right or claim unless an Event of Default has occurred and remains uncured. 
  
 (e) After payment in full of all sums evidenced by the Note
and secured by the Mortgage and release or assignment by Lender of the lien of the Mortgage, Lender shall disburse to Borrower all amounts remaining in the Reserves. 
  
 ARTICLE 8 
  
 DEFAULTS 
  
 Section 8.1 Event of Default. 
  
 (a) Each of the following events shall constitute an event of default hereunder (an “Event of Default”): 
  

	 	(i)	if any portion of the Debt is not paid when due (subject to Borrower having deposited with Lender in accordance with Section 2.6.4 sums sufficient to pay such amounts when
due); 

  

	 	(ii)	intentionally omitted; 

  

	 	(iii)	if any of the Taxes are not paid when the same are due and payable or the Other Charges are not paid prior to delinquency; 

  

	 	(iv)	if the Policies are not kept in full force and effect, or if satisfactory evidence of the insurance coverage required hereunder or any other Loan Document is not delivered to Lender
within ten (10) days of request; 

  

 85 

	 	(v)	if any Transfer is made in violation of the terms of this Agreement or any other Loan Document; 

  

	 	(vi)	if any representation or warranty made by, or on behalf of, Borrower or any other Significant Party herein or in any other Loan Document, or in any report, certificate, Financial
Statement or other instrument, agreement or document furnished to Lender shall have been false or misleading in any material respect as of the date the representation or warranty was made; 

  

	 	(vii)	if any Significant Party shall make an assignment for the benefit of creditors; 

  

	 	(viii)	if a receiver, liquidator or trustee shall be appointed for any Significant Party, or if any Significant Party shall be adjudicated a bankrupt or insolvent, or if any petition for
bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by or against, consented to, or acquiesced in by, any Significant Party, or if any proceeding for the dissolution or
liquidation of any Significant Party shall be instituted; provided, however, if such appointment, adjudication, petition or proceeding was involuntary and not consented to by such Significant Party, upon the same not being discharged,
stayed or dismissed within ninety (90) days; 

  

	 	(ix)	if Borrower attempts to assign its rights under this Agreement or any of the other Loan Documents or any interest herein or therein in contravention of the Loan Documents;

  

	 	(x)	if Borrower breaches any of its respective negative covenants contained in Section 5.2 or Section 5.1.11 (other than those covenants contained in Section 5.2
which are otherwise expressly provided for in this Section 8.1 hereof) and such breach is not cured after ten (10) days notice from Lender or if Borrower breaches any covenant contained in Section 4.1.30; 

  

	 	(xi)	if any of the assumptions contained in the Insolvency Opinion delivered to Lender in connection with the Loan, or in the Additional Insolvency Opinion delivered subsequent to the
closing of the Loan, is or shall become untrue in any material respect unless such matter is cured in a timely manner without any adverse consequences to the Loan or to Lender; 

  

	 	(xii)	 if a material default has occurred and continues beyond any applicable cure period under the Management Agreement (or any Replacement Management Agreement) and if
such default permits the Manager thereunder to terminate or cancel the Management 

  

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Agreement (or any Replacement Management Agreement) and Borrower fails to replace Manager with a Qualified Manager; 

  

	 	(xiii)	if at any time an “Event of Default” shall occur under and as defined in any one or more of the Other Borrower Loan Documents; 

  

	 	(xiv)	if at any time a default shall occur and continue beyond the expiration of applicable notice and cure periods under any Junior Lender Security Document; 

  

	 	(xv)	if Borrower shall continue to be in Default under any of the other terms, covenants or conditions of this Agreement not specified in subsections (i) to (xii) above, for ten (10)
Business Days after notice to Borrower from Lender, in the case of any Default which can be cured by the payment of a sum of money, or for thirty (30) days after notice from Lender in the case of any other Default; provided, however,
that if such non-monetary Default is susceptible of cure but cannot reasonably be cured within such thirty (30) day period and provided further that Borrower shall have commenced to cure such Default within such thirty (30) day period
and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for such time as is reasonably necessary for Borrower in the exercise of due diligence to cure such Default, such additional period
not to exceed 180 days; 

  

	 	(xvi)	Intentionally Omitted. 

  

	 	(xvii)	if at any time Borrower shall fail to cause all Rents to be paid directly to the Property Account as provided herein and in the Cash Management Agreement and the Property Account
Agreement; or 

  

	 	(xviii)	if there shall be default under any of the other Loan Documents beyond any applicable cure periods contained in such documents, whether as to Borrower or the Property, or if any
other such event shall occur or condition shall exist, if the effect of such event or condition is to accelerate the maturity of any portion of the Debt or to permit Lender to accelerate the maturity of all or any portion of the Debt.

  
 (b) Upon the occurrence of an
Event of Default (other than an Event of Default described in clauses (vi), (vii) or (viii) above) and at any time thereafter, in addition to any other rights or remedies available to it pursuant to this Agreement and the other Loan Documents or at
law or in equity, Lender may take such action, without notice or demand, that Lender deems advisable to protect and enforce its rights against Borrower and in and to the Property, including, without limitation, declaring the Obligations to be
immediately due and 

  

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payable, and Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower and the Property, including,
without limitation, all rights or remedies available at law or in equity; and upon any Event of Default described in clauses (vi), (vii) or (viii) above, the Debt and all Other Obligations of Borrower hereunder and under the other Loan Documents
shall immediately and automatically become due and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand, anything contained herein or in any other Loan Document to the contrary notwithstanding.

  
 Section 8.2 Remedies. 
  
 (a) Upon the occurrence of an Event of Default, all or any
one or more of the rights, powers, privileges and other remedies available to Lender against Borrower under this Agreement or any of the other Loan Documents executed and delivered by, or applicable to, Borrower or at law or in equity may be
exercised by Lender at any time and from time to time, whether or not all or any of the Debt shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action for the enforcement of its
rights and remedies under any of the Loan Documents. Any such actions taken by Lender shall be cumulative and concurrent and may be pursued independently, singularly, successively, together or otherwise, at such time and in such order as Lender may
determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and remedies of Lender permitted by law, equity or contract or as set forth herein or in the other Loan Documents.
Without limiting the generality of the foregoing, Borrower agrees that if an Event of Default is continuing (i) Lender shall not be subject to any “one action” or “election of remedies” law or rule, and (ii) all liens and other
rights, remedies or privileges provided to Lender shall remain in full force and effect until Lender has exhausted all of its remedies against the Property and the Mortgage has been foreclosed, sold and/or otherwise realized upon in satisfaction of
the Debt or the Obligations have been paid in full. 
  
 (b) Lender shall have the right from time to time to sever the Note and the other Loan Documents into one or more separate notes, mortgages and other security documents (the “Severed Loan Documents”) in such denominations
as Lender shall determine in its sole discretion for purposes of evidencing and enforcing its rights and remedies provided hereunder. Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance
agreement and such other documents as Lender shall request in order to effect the severance described in the preceding sentence, all in form and substance reasonably satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender
as its true and lawful attorney, coupled with an interest, in its name and stead to make and execute all documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue thereof;
provided, however, Lender shall not make or execute any such documents under such power until three (3) days after notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under such power. Borrower
shall not be obligated to pay any costs or expenses incurred in connection with the preparation, execution, recording or filing of the Severed Loan Documents. Further, the Severed Loan Documents shall not contain any representations, warranties or
covenants not contained in the Loan Documents and any such representations and warranties contained in the Severed Loan Documents will be given by Borrower only as of the Closing Date. 
  

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 (c) Lender shall have the right from time to time to partially foreclose the Mortgage in
any manner and for any amounts secured by the Mortgage then due and payable as determined by Lender in its sole discretion, including the following circumstances: (i) in the event Borrower defaults beyond any applicable grace period in the payment
of one or more scheduled payments of principal and/or interest, Lender may foreclose the Mortgage to recover such delinquent payments, or (ii) in the event Lender elects to accelerate less than the entire Outstanding Principal Balance, Lender may
foreclose the Mortgage to recover so much of the Debt as Lender may accelerate and such other sums secured by the Mortgage as Lender may elect. Notwithstanding one or more partial foreclosures, the Property shall remain subject to the Mortgage to
secure payment of sums secured by the Mortgage and not previously recovered. 
  
 (d) Any amounts recovered from the Property or any other collateral for the Loan after an Event of Default may be applied by Lender toward the payment of any interest and/or principal of the Loan and/or any other
amounts due under the Loan Documents in such order, priority and proportions as Lender in its sole discretion shall determine. 
  
 (e) Without limiting the generality of the foregoing or otherwise impairing or 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, Borrower agrees that if an Event of Default has occurred and is continuing Lender shall have the right to immediately draw down in full upon any Letter of Credit
delivered by, or on behalf of Borrower pursuant to the terms of this Agreement or any of the other Loan Documents, and apply the proceeds of such draw towards the payment of any interest and/or principal of the Loan and/or any other amounts due
under the Loan Documents in such order, priority and proportions as Lender in its sole discretion shall determine. 
  
 (f) Remedies Cumulative; Waivers. The rights, powers and remedies of Lender under this Agreement shall be cumulative and not
exclusive of any other right, power or remedy which Lender may have against Borrower pursuant to this Agreement or the other Loan Documents, or existing at law or in equity or otherwise. Lender’s rights, powers and remedies may be pursued
singularly, concurrently or otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion. No delay or omission to exercise any remedy, right or power accruing upon an Event of Default shall impair any such
remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient. A waiver of one Default or Event of Default with respect to Borrower
shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any remedy, right or power consequent thereon. 
  
 ARTICLE 9 
  
 SPECIAL PROVISIONS 
  
 Section 9.1 Sale of Note and Securitization. Borrower acknowledges and agrees that Lender may sell all or any portion of the Loan and the Loan Documents, or issue one or more participations therein, or
consummate one or more private or public securitizations of rated single- or multi-class securities (the “Securities”) secured by or evidencing ownership interests 

  

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in all or any portion of the Loan and the Loan Documents or a pool of assets that include the Loan and the Loan Documents (such sales, participations and/or
securitizations, collectively, a “Securitization”). At the request of Lender, and to the extent not already required to be provided by Borrower under this Agreement, Borrower shall use reasonable efforts to provide information not
in the possession of Lender or which may be reasonably required by Lender in order to satisfy the market standards to which Lender customarily adheres or which may be reasonably required by prospective investors and/or the Rating Agencies in
connection with any such Securitization including, without limitation, to: 
  
 (a) provide additional and/or updated Provided Information, together with appropriate verification and/or consents related to the Provided Information through letters of auditors or opinions of counsel of independent
attorneys reasonably acceptable to Lender and the Rating Agencies; 
  
 (b) assist in preparing descriptive materials for presentations to any or all of the Rating Agencies, and work with, and if requested, supervise, third-party service providers engaged by Borrower, Principal and their
respective affiliates to obtain, collect, and deliver information requested or required by Lender or the Rating Agencies; 
  
 (c) if required by the Rating Agencies, deliver (i) updated opinions of counsel as to non-consolidation, due execution and enforceability
with respect to the Property, Borrower, Principal and their respective Affiliates and the Loan Documents, and (ii) revised organizational documents for Borrower, which counsel opinions and organizational documents shall be reasonably satisfactory to
Lender and the Rating Agencies; 
  
 (d) if
required by any Rating Agency, use commercially reasonable efforts to deliver such additional tenant estoppel letters, subordination agreements or other agreements from parties to agreements that affect the Property, which estoppel letters,
subordination agreements or other agreements shall be reasonably satisfactory to Lender and the Rating Agencies; 
  
 (e) make such representations and warranties as of the closing date of the Securitization with respect to the Property, Borrower,
Principal and the Loan Documents as may be reasonably requested by Lender or the Rating Agencies and consistent with the facts covered by such representations and warranties as they exist on the date thereof, including the representations and
warranties made in the Loan Documents; 
  
 (f)
execute such non-material amendments to the Loan Documents as may be requested by Lender or the Rating Agencies to effect the Securitization; 
  
 (g) if requested by Lender, review any information regarding the Property, Borrower, Principal, the Manager and the Loan which is
contained in a preliminary or final private placement memorandum, prospectus, prospectus supplement (including any amendment or supplement to either thereof), or other disclosure document to be used by Lender or any affiliate thereof; and

  

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 (h) supply to Lender such documentation, financial statements and reports concerning
Borrower, Principal, Guarantor, the Loan and/or the Property in form and substance required in order to comply with any applicable securities laws. 
  
 All reasonable third party costs and expenses incurred by Borrower or Lender in connection with Borrower’s complying with requests made under this
Section 9.1 (including, without limitation, the fees and expenses of the Rating Agencies) shall be paid by Lender. 
  
 Section 9.2 Securitization Indemnification. 
  
 (a) Borrower understands that certain of the Provided Information may be included in Disclosure Documents in connection with the
Securitization and may also be included in filings with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Securities and Exchange Act of 1934, as amended (the
“Exchange Act”), or provided or made available to investors or prospective investors in the Securities, the Rating Agencies, and service providers relating to the Securitization. In the event that the Disclosure Document is required
to be revised prior to the sale of all Securities, Borrower will cooperate with the holder of the Note in updating the Disclosure Document by providing all current information necessary to keep the Disclosure Document accurate and complete in all
material respects. 
  
 (b) The Indemnifying
Persons agree to provide, in connection with the Securitization, an indemnification agreement (i) certifying that (A) the Indemnifying Persons have carefully examined the Disclosure Documents, including, without limitation, the sections entitled
“Risk Factors,” “Special Considerations,” “Description of the Mortgages,” “Description of the Mortgage Loans and Mortgaged Property,” “The Manager,” “The Borrower” and “Certain Legal
Aspects of the Mortgage Loan,” and (B) such sections and such other information in the Disclosure Documents (to the extent such information relates to or includes any Provided Information or any information regarding the Property, Borrower,
Manager and/or the Loan) (collectively with the Provided Information, the “Covered Disclosure Information”) do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements made, in the light of the circumstances under which they were made, not misleading, (ii) jointly and severally indemnifying Lender, CSFB (whether or not it is Lender), any Affiliate of CSFB that has filed any registration statement
relating to the Securitization or has acted as the sponsor or depositor in connection with the Securitization, any Affiliate of CSFB that acts as an underwriter, placement agent or initial purchaser of Securities issued in the Securitization, any
other co-underwriters, co-placement agents or co-initial purchasers of Securities issued in the Securitization, and each of their respective officers, directors, partners, employees, representatives, agents and Affiliates and each Person or entity
who controls any such Person within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Indemnified Persons”), for any losses, claims, damages, liabilities, costs or expenses
(including without limitation legal fees and expenses for enforcement of these obligations (collectively, the “Liabilities”)) to which any such Indemnified Person may become subject insofar as the Liabilities arise out of or are
based upon any untrue statement or alleged untrue statement of any material fact contained in the Covered Disclosure Information or arise out of or are based upon the omission or alleged omission to state in the Covered Disclosure Information a
material fact required to be stated therein or necessary in order 

  

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to make the statements in the Covered Disclosure Information, in light of the circumstances under which they were made, not misleading and (iii) agreeing to
reimburse each Indemnified Person for any legal or other expenses incurred by such Indemnified Person, as they are incurred, in connection with investigating or defending the Liabilities. This indemnity agreement will be in addition to any liability
which Borrower may otherwise have. Moreover, the indemnification provided for in clauses (ii) and (iii) above shall be effective whether or not an indemnification agreement described in clause (i) above is provided. 
  
 (c) In connection with filings under the Exchange Act, the
Indemnifying Persons jointly and severally agree to indemnify (i) the Indemnified Persons for Liabilities to which any such Indemnified Person may become subject insofar as the Liabilities arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact in the Covered Disclosure Information, or the omission or alleged omission to state in the Covered Disclosure Information a material fact required to be stated therein or necessary in order to make the
statements in the Covered Disclosure Information, in light of the circumstances under which they were made, not misleading and (ii) reimburse each Indemnified Person for any legal or other expenses incurred by such Indemnified Persons, as they are
incurred, in connection with defending or investigating the Liabilities. 
  
 (d) Promptly after receipt by an Indemnified Person of notice of any claim or the commencement of any action, the Indemnified Person shall, if a claim in respect thereof is to be made against any Indemnifying Person,
notify such Indemnifying Person in writing of the claim or the commencement of that action; provided, however, that the failure to notify such Indemnifying Person shall not relieve it from any liability which it may have under the
indemnification provisions of this Section 9.2 except to the extent that it has been materially prejudiced by such failure and, provided further that the failure to notify such Indemnifying Person shall not relieve it from any
liability which it may have to an Indemnified Person otherwise than under the provisions of this Section 9.2. If any such claim or action shall be brought against an Indemnified Person, and it shall notify any Indemnifying Person thereof,
such Indemnifying Person shall be entitled to participate therein and, to the extent that it wishes, assume the defense thereof with counsel reasonably satisfactory to the Indemnified Person. After notice from any Indemnifying Person to the
Indemnified Person of its election to assume the defense of such claim or action, such Indemnifying Person shall not be liable to the Indemnified Person for any legal or other expenses subsequently incurred by the Indemnified Person in connection
with the defense thereof except as provided in the following sentence; provided, however, if the defendants in any such action include both an Indemnifying Person, on the one hand, and one or more Indemnified Persons on the other hand,
and an Indemnified Person shall have reasonably concluded that there are any legal defenses available to it and/or other Indemnified Persons that are different or in addition to those available to the Indemnifying Person, the Indemnified Person or
Persons shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such Indemnified Person or Persons. The Indemnified Person shall instruct its counsel to
maintain reasonably detailed billing records for fees and disbursements for which such Indemnified Person is seeking reimbursement hereunder and shall submit copies of such detailed billing records to substantiate that such counsel’s fees and
disbursements are solely related to the defense of a claim for which the Indemnifying Person is required hereunder to indemnify such Indemnified Person. No Indemnifying Person shall be liable for the expenses of more than one 

  

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(1) such separate counsel unless any Indemnified Person shall have reasonably concluded that there may be legal defenses available to it that are different
from or additional to those available to any Indemnifying Person. 
  
 (e) Without the prior consent of CSFB (which consent shall not be unreasonably withheld), no Indemnifying Person shall settle or compromise or consent to the entry of any judgment in any pending or threatened claim,
action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is an actual or potential party to such claim, action, suit or proceeding) unless the Indemnifying Person shall have given
CSFB reasonable prior notice thereof and shall have obtained an unconditional release of each Indemnified Person hereunder from all liability arising out of such claim, action, suit or proceeding. As long as an Indemnifying Person has complied with
its obligations to defend and indemnify hereunder, such Indemnifying Person shall not be liable for any settlement made by any Indemnified Person without the consent of such Indemnifying Person (which consent shall not be unreasonably withheld).

  
 (f) The Indemnifying Persons agree that if
any indemnification or reimbursement sought pursuant to this Section 9.2 is finally judicially determined to be unavailable for any reason or is insufficient to hold any Indemnified Person harmless (with respect only to the Liabilities that
are the subject of this Section 9.2), then the Indemnifying Persons, on the one hand, and such Indemnified Person, on the other hand, shall contribute to the Liabilities for which such indemnification or reimbursement is held unavailable or
is insufficient: (x) in such proportion as is appropriate to reflect the relative benefits to the Indemnifying Persons, on the one hand, and such Indemnified Person, on the other hand, from the transactions to which such indemnification or
reimbursement relates; or (y) if the allocation provided by clause (x) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (x) but also the relative faults of
the Indemnifying Persons, on the one hand, and all Indemnified Persons, on the other hand, as well as any other equitable considerations. Notwithstanding the provisions of this Section 9.2, (A) no party found liable for a fraudulent
misrepresentation shall be entitled to contribution from any other party who is not also found liable for such fraudulent misrepresentation, and (B) the Indemnifying Persons agree that in no event shall the amount to be contributed by the
Indemnified Persons collectively pursuant to this paragraph exceed the amount of the fees (by underwriting discount or otherwise) actually received by the Indemnified Persons in connection with the closing of the Loan or the Securitization.

  
 (g) The Indemnifying Persons agree that the
indemnification, contribution and reimbursement obligations set forth in this Section 9.2 shall apply whether or not any Indemnified Person is a formal party to any lawsuits, claims or other proceedings. The Indemnifying Persons further agree
that the Indemnified Persons are intended third party beneficiaries under this Section 9.2. 
  
 (h) The rights, liabilities and obligations of the Indemnified Persons and the Indemnifying Persons under this Section 9.2 shall
survive the termination of this Agreement and the satisfaction and discharge of the Obligations. 
  

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 (i) Notwithstanding anything to the contrary contained herein, Borrower shall have no
obligation to act as depositor with respect to the Loan or an issuer or registrant with respect to the Securities issued in any Securitization. 
  
 Section 9.3 [RESERVED] 
  
 Section 9.4 Exculpation. Subject to the qualifications below, Lender shall not enforce the liability and obligation of Borrower to perform and
observe the obligations contained in the Note, this Agreement, the Mortgage or the other Loan Documents by any action or proceeding wherein a money judgment shall be sought against Borrower, except that Lender may bring a foreclosure action, an
action for specific performance or any other appropriate action or proceeding to enable Lender to enforce and realize upon its interest under the Note, this Agreement, the Mortgage, the other Loan Documents, or in the Property, the Rents, or any
other collateral given to Lender pursuant to the Loan Documents; provided, however, that, except as specifically provided herein, any judgment in any such action or proceeding shall be enforceable against Borrower only to the extent of
Borrower’s interest in the Property, in the Rents and in any other collateral given to Lender, and Lender, by accepting the Note, this Agreement, the Mortgage and the other Loan Documents, agrees that it shall not sue for, seek or demand any
deficiency judgment against Borrower in any such action or proceeding under, or by reason of, or in connection with, the Note, this Agreement, the Mortgage or the other Loan Documents. The provisions of this Section shall not, however, (a)
constitute a waiver, release or impairment of any obligation evidenced or secured by any of the Loan Documents; (b) impair the right of Lender to name Borrower as a party defendant in any action or suit for foreclosure and sale under the Mortgage or
the Second Mortgage; (c) affect the validity or enforceability of any guaranty or indemnity, including without limitation, the Guaranty, the Borrower Guaranty and/or the Environmental Indemnity, made in connection with the Loan or any of the rights
and remedies of Lender thereunder; (d) impair the right of Lender to obtain the appointment of a receiver; (e) impair the enforcement of the Assignment of Leases; (f) constitute a prohibition against Lender to seek a deficiency judgment against
Borrower in order to fully realize the security granted by the Mortgage and/or the other Loan Documents or to commence any other appropriate action or proceeding in order for Lender to exercise its remedies against the Property; or (g) constitute a
waiver of the right of Lender to enforce the liability and obligation of Borrower, by money judgment or otherwise, to the extent of any actual loss, damage, cost, expense, liability, claim or other obligation incurred by Lender (including reasonable
attorneys’ fees and costs reasonably incurred) arising out of or in connection with the following: 
  

	 	(i)	fraud or intentional misrepresentation by any Significant Party in connection with the Loan, including by reason of any claim under RICO; 

  

	 	(ii)	the gross negligence or willful misconduct of Borrower; 

  

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

  

 94 

	 	(iv)	the intentional removal or destruction of any portion of the Property by Borrower or any party acting on behalf of Borrower after an Event of Default; 

  

	 	(v)	any Legal Requirement (including RICO) mandating the forfeiture by Borrower of the Property, or any portion thereof, because of the conduct or purported conduct of criminal activity
by Borrower or any Significant Party in connection therewith; 

  

	 	(vi)	the misappropriation or conversion by or on behalf of Borrower of (A) any Insurance Proceeds paid by reason of any Casualty, (B) any Awards received in connection with a
Condemnation, (C) any Rents following an Event of Default, or (D) any Rents paid more than one (1) month in advance; 

  

	 	(vii)	failure to pay, when funds are available from the Property or Reserves, charges for labor or materials or other charges which become Liens on of the Property which were prior to the
Lien of the Mortgage; 

  

	 	(viii)	any security deposits, advance deposits or any other deposits collected with respect to the Property which are not delivered to Lender upon a foreclosure of the Property or action
in lieu thereof, except to the extent any such security deposits were applied in accordance with the terms and conditions of any of the Leases prior to the occurrence of the Event of Default that gave rise to such foreclosure or action in lieu
thereof; and 

  

	 	(ix)	failure of Borrower to direct the payment of or, pay any, Rents or other Receipts to the Property Account as required by the Loan Documents; and 

  

	 	(x)	the failure of Borrower to apply monies disbursed to it from the Cash Management Account (or any sub-account thereof) for the purpose which such disbursement is made.

  
 Notwithstanding anything to the contrary in this
Agreement, the Note or any of the Loan Documents, (A) Lender shall not be deemed to have waived any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a claim for the full
amount of the Debt secured by the Mortgage or to require that all collateral shall continue to secure all of the Obligations in accordance with the Loan Documents, and (B) the Debt shall be fully recourse to Borrower (i) in the event of: (a)
Borrower filing a voluntary petition under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (b) Borrower, or any Person acting on behalf of Borrower, soliciting or causing to be solicited petitioning creditors for any
involuntary petition against Borrower from any Person; (c) Borrower filing an answer consenting to or otherwise acquiescing in or joining in any involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other

  

 95 

 
Federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited petitioning creditors for any involuntary petition from any Person;
(d) Borrower consenting to or acquiescing in or joining in an application for the appointment of a custodian, receiver, trustee, or examiner for Borrower or any portion of the Property; (e) Borrower making an assignment for the benefit of creditors,
or admitting, in writing or in any legal proceeding, its insolvency or inability to pay its debts as they become due; (ii) if Borrower fails to maintain its status as a Single Purpose Entity; (iii) if Borrower fails to obtain Lender’s prior
consent to any Indebtedness or voluntary Lien encumbering the Property as required by this Agreement or the Mortgage; (iv) if any Restricted Party fails to obtain Lender’s prior consent to any Transfer as required by this Agreement or the
Mortgage; or (v) an act or omission of Borrower, Principal, Guarantor or any Affiliate of Borrower, Principal, or Guarantor which hinders, delays or interferes with Lender’s enforcement of its rights hereunder or the realization of the
Collateral, including the assertion by Borrower, Principal, Guarantor or such Affiliate of defenses or counterclaims. 
  
 Further, if any Significant Party fails to provide financial information in accordance with Section 5.1.11 hereof within a reasonable time
following request by Lender therefor, Borrower shall pay an amount equal to $10,000 in order to defray the expense incurred by Lender as a result of such delay and to compensate Lender for any losses suffered as a result of such delay. 

 
 Section 9.5 Matters Concerning Manager. If (a) the Manager shall
become bankrupt or insolvent or (b) a material default occurs under the Management Agreement beyond any applicable grace and cure periods, Borrower shall, at the request of Lender, terminate the Management Agreement and replace the Manager with a
Qualified Manager pursuant to a Replacement Management Agreement, it being understood and agreed that the management fee for such replacement manager shall not exceed then prevailing market rates. 
  
 Section 9.6 Servicer. At the option of Lender, the Loan may be
serviced by a servicer/trustee (the “Servicer”) selected by Lender and Lender may delegate all or any portion of its responsibilities under this Agreement and the other Loan Documents to the Servicer pursuant to a servicing
agreement (the “Servicing Agreement”) between Lender and Servicer. Borrower shall not be responsible for any set-up fees or any other costs relating to or arising under the Servicing Agreement; including the monthly servicing fee
due to the Servicer under the Servicing Agreement. 
  
 Section 9.7
Severance of Loan Documents. Lender shall have the right, at any time (whether prior to or after any sale or participation of all or any portion of the Loan), to modify the Loan in order to create one or more senior and subordinate notes
(i.e., an A/B or A/B/C structure) and/or one or more additional components of the Note or Notes, reduce the number of components of the Note or Notes, revise the interest rate for each component, reallocate the principal balances of the Notes
and/or the components, increase or decrease the monthly debt service payments for each component or eliminate the component structure and/or the multiple note structure of the Loan (including the elimination of the related allocations of principal
and interest payments), provided that the Outstanding Principal Balance of all components immediately after the effective date of such modification equals the Outstanding Principal Balance immediately prior to such modification and the weighted
average of the interest rates for all components immediately after the effective date of such modification equals the interest rate of the original Note immediately prior to such modification and modify the Cash Management 

  

 96 

 
Agreement with respect to the newly created components such that the pricing and marketability of the Securities and the size of each class of Securities and
the rating assigned to each such class by the Rating Agencies shall provide the most favorable rating levels and achieve the optimum rating levels for the Loan. Lender shall have the right to modify the Note and/or Notes and any components in
accordance with this Section 9.7 and, provided that such modification shall comply with the terms of this Section 9.7, it shall become immediately effective. If requested by Lender, Borrower shall promptly execute an amendment to the
Loan Documents to evidence any such modification. In the event Borrower fails to deliver said amendment to Lender within fifteen (15) Business Days after request, Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful
attorney-in-fact (with full power of substitution), coupled with an interest, in its name and stead to make and execute all documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by
virtue thereof; provided, that, Lender shall not make or execute any such documents under such power until three (3) Business Days after notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under
such power. Lender shall be obligated to pay any reasonable costs or expenses incurred by Lender or Borrower in connection with the preparation, execution, recording or filing of the Severed Loan Documents. Except as may be required in connection
with a securitization, the Severed Loan Documents shall not contain any representations, warranties or covenants not contained in the Loan Documents. 
  
 9.8 Mezzanine Loan Option. Lender shall have the right, on or before the date which is one (1) year following the Closing Date, to divide the Loan
into two parts (the “Mezzanine Option”): a mortgage loan (the “Mortgage Loan”) and a mezzanine loan (the “Mezzanine Loan”). In such event, Borrower agrees to cause the formation of the Mezzanine
Borrower. The principal amount of the Mortgage Loan plus the principal amount of the Mezzanine Loan shall equal the outstanding principal balance of the Loan immediately prior to the creation of the Mortgage Loan and the Mezzanine Loan. In
effectuating the foregoing, Mezzanine Lender will make a loan to Mezzanine Borrower; Mezzanine Borrower will contribute the amount of the Mezzanine Loan to Borrower (in its capacity as Borrower under the Mortgage Loan, “Mortgage
Borrower”) and Mortgage Borrower will apply the contribution to pay down the Loan to its Mortgage Loan amount. The Mortgage Loan and the Mezzanine Loan will be on the same terms and subject to the same conditions set forth in this
Agreement, the Note, the Mortgage and the other Loan Documents except as follows: 
  
 (a) Lender (in its capacity as the lender under the Mortgage Loan, the “Mortgage Lender”) shall have the right to
establish different interest rates and debt service payments for the Mortgage Loan and the Mezzanine Loan and to require the payment of the Mortgage Loan and the Mezzanine Loan in such order of priority as may be designated by Lender; provided, that
(i) the total loan amounts for the Mortgage Loan and the Mezzanine Loan shall equal the amount of the Loan immediately prior to the creation of the Mortgage Loan and the Mezzanine Loan, (ii) the weighted average interest rate of the Mortgage Loan
and the Mezzanine Loan shall on the date created equal the interest rate which was applicable to the Loan immediately prior to creation of a Mortgage Loan and a Mezzanine Loan and (iii) prior to the occurrence of an Event of Default, the debt
service payments on the Mortgage Loan note and the Mezzanine Loan note shall equal the debt service payment which are due under the Loan as if no Mezzanine Loan had been created. 
  

 97 

 (b) Mezzanine Borrower shall be a special purpose, bankruptcy remote entity pursuant to
applicable Rating Agency criteria and shall own directly or indirectly one hundred percent (100%) of Mortgage Borrower. The security for the Mezzanine Loan shall be a pledge of one hundred percent (100%) of the direct and indirect ownership
interests in Mortgage Borrower. 
  
 (c) Mezzanine
Borrower and Mortgage Borrower shall cooperate with all reasonable requests of Lender in order to convert the Loan into a Mortgage Loan and a Mezzanine Loan and shall execute and deliver such documents as shall reasonably be required by Lender and
any Rating Agency in connection therewith, including, without limitation, the delivery of non-consolidation opinions and the modification of organizational documents and loan documents. In the event Mortgage Borrower and/or Mezzanine Borrower fail
to execute and deliver such documents to Lender within five (5) Business Days following such request by Lender, Mortgage Borrower and/or Mezzanine Borrower, as applicable, hereby absolutely and irrevocably appoint Lender as their true and lawful
attorney, coupled with an interest, in their name and stead to make and execute all documents necessary or desirable to effect such transactions, Mortgage Borrower and/or Mezzanine Borrower, as applicable, ratifying all that such attorney shall do
by virtue thereof. Lender shall pay all costs and expenses in connection with the creation of the Mortgage Loan and the Mezzanine Loan and all requirements relating thereto, including, without limitation, the cost of any UCC lien insurance policy.

  
 (d) It shall be an Event of Default under
this Agreement, the Note, the Mortgage and the other Loan Documents if Borrower or Mezzanine Borrower fails to comply with any of the terms, covenants or conditions of this Section 9.8 after expiration of ten (10) Business Days after notice
thereof. 
  
 ARTICLE 10 
  
 MISCELLANEOUS 
  
 Section 10.1 Survival. This Agreement and all covenants, agreements,
representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the making by Lender of the Loan and the execution and delivery to Lender of the Note, and shall continue in full force and effect so long as
all or any of the Obligations are outstanding and unpaid unless a longer period is expressly set forth herein or in the other Loan Documents. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to
include the legal representatives, successors and assigns of such party. All covenants, promises and agreements in this Agreement, by or on behalf of Borrower, shall inure to the benefit of the legal representatives, successors and assigns of
Lender. 
  
 Section 10.2 Lender’s Discretion. Whenever
pursuant to this Agreement, Lender exercises any right given to it to approve or disapprove, or any arrangement or term is to be satisfactory to Lender, the decision of Lender to approve or disapprove or to decide whether arrangements or terms are
satisfactory or not satisfactory shall (except as is otherwise specifically herein provided) be in the sole discretion of Lender and shall be final and conclusive. Whenever this Agreement expressly provides that Lender may not withhold its consent
or its 

  

 98 

 
approval of an arrangement or term, such provisions shall also be deemed to prohibit Lender from delaying or conditioning such consent or approval.

  
 Section 10.3 Governing Law 
  
 (a) THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW
YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO
THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS
AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS
SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE
CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE
LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT, THE NOTE AND/OR THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 
  
 (b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS MAY AT LENDER’S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT
IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION
OR PROCEEDING, AND BORROWER HEREBY IRREVOCABLY SUBMITS TO THE 

  

 99 

 
JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT: 
  
 CT CORPORATION SYSTEM 
 111 EIGHTH AVENUE 
 NEW YORK, NEW YORK
10011 
  
 AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF
SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND NOTICE OF SAID SERVICE MAILED OR
DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY
CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND
ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR. 
  
 (c) BORROWER DOES HEREBY DESIGNATE AND APPOINT:

  
 CT CORPORATION SYSTEM 
 1200 SOUTH PINE ISLAND ROAD 
 PLANTATION, FLORIDA 33324 
  
 AS ITS AUTHORIZED AGENT TO ACCEPT
AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN FLORIDA, AND BORROWER AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN
NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF FLORIDA. 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 WITH AN OFFICE IN FLORIDA (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS
THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN FLORIDA OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR. 
  

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 Section 10.4 Modification, Waiver in Writing. No modification, amendment, extension, discharge,
termination or waiver of any provision of this Agreement, or of the Note, or of any other Loan Document, nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in a writing signed by the party
against whom enforcement is sought, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or demand on Borrower, shall
entitle Borrower to any other or future notice or demand in the same, similar or other circumstances. 
  
 Section 10.5 Delay Not a Waiver. Neither any failure nor any delay on the part of Lender in insisting upon strict performance of any term,
condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under the Note or under any other Loan Document, or under any other instrument given as security therefor, shall operate as or constitute a waiver
thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by way of limitation, by accepting payment after the due date of any
amount payable under this Agreement, the Note or any other Loan Document, Lender shall not be deemed to have waived any right either to require prompt payment when due of all other amounts due under this Agreement, the Note or the other Loan
Documents, or to declare a default for failure to effect prompt payment of any such other amount. 
  
 Section 10.6 Notices. All notices, consents, approvals and requests required or permitted hereunder or under any other Loan Document (each, a
“Notice”), shall be given in writing and shall be effective for all purposes if hand delivered or sent by (a) certified or registered United States mail, postage prepaid, return receipt requested or (b) expedited prepaid delivery
service, either commercial or United States Postal Service, with proof of attempted delivery, and by telecopier (with answer back acknowledged), addressed as follows (or at such other address and Person as shall be designated from time to time by
any party hereto, as the case may be, in a Notice to the other parties hereto in the manner provided for in this Section 10.6): 
  

			
	 If to Lender:
	  	 Column Financial, Inc.
 11 Madison Avenue
 New York, New York 10010
 Attention: Robert Russell
 Facsimile No. (212) 734-5230

		
	 with a copy to:
	  	 Column Financial, Inc.
 11 Madison Avenue
 New York, New York 10010
 Legal and Compliance Department
 Attention: Tessa Peters
 Facsimile No. (917) 326-7805

  

 101 

			
	 with a copy to:
	  	 Greenberg Traurig, LLP
 200 Park Avenue
 New York, New York 10166
 Attention: Alan Pleskow, Esq.
 Facsimile No. (212) 801-9200

		
	 If to Borrower:
	  	 c/o Wyndham International, Inc.
 1950 Stemmons Freeway, Suite 6001
 Dallas, Texas 75207
 Attention: Philip Gosch, Esq.
 Facsimile No. (214) 863-1669

		
	 with a copy to:
	  	 Sidley Austin Brown & Wood LLP
 787 Seventh Avenue
 New York, New York 10019
 Attention: Alan Weil, Esq.
 Facsimile No. (212) 839-5599

  
 A Notice shall be deemed to have been
given: in the case of hand delivery or delivery by a reputable overnight courier, at the time of delivery; in the case of registered or certified mail, when delivered or the first attempted delivery on a Business Day; in the case of expedited
prepaid delivery and telecopy, upon the first attempted delivery on a Business Day; or in the case of telecopy, upon sender’s receipt of a machine-generated confirmation of successful transmission after advice by telephone to recipient that a
telecopy Notice is forthcoming. 
  
 Section 10.7 Trial by
Jury. BORROWER AND LENDER EACH HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN
DOCUMENTS OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER AND LENDER AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH
ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH OF BORROWER AND LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER. 
  
 Section 10.8 Headings. The Article and/or Section headings and the
Table of Contents in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
  
 Section 10.9 Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, 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 10.10 Preferences. Lender shall have the continuing and exclusive right to apply or
reverse and reapply any and all payments by Borrower to any portion of the Obligations of Borrower hereunder. To the extent Borrower makes a payment or payments to Lender, which payment or proceeds or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds
received, the Obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Lender. 
  
 Section 10.11 Waiver of Notice. Borrower hereby expressly waives, and
shall not be entitled to, any notices of any nature whatsoever from Lender except with respect to matters for which this Agreement or the other Loan Documents specifically and expressly provide for the giving of notice by Lender to Borrower and
except with respect to matters for which Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. 
  
 Section 10.12 Remedies of Borrower. In the event that a claim or adjudication is made that Lender or its agents have acted unreasonably or
unreasonably delayed acting in any case where by law or under this Agreement or the other Loan Documents, Lender or such agent, as the case may be, has an obligation to act reasonably or promptly, Borrower agrees that neither Lender nor its agents
shall be liable for any monetary damages, and Borrower’s sole remedies shall be limited to commencing an action seeking injunctive relief or declaratory judgment. The parties hereto agree that any action or proceeding to determine whether
Lender has acted reasonably shall be determined by an action seeking declaratory judgment. 
  
 Section 10.13 Expenses; Indemnity. 
  
 (a) Borrower covenants and agrees to pay or, if Borrower fails to pay, to reimburse, Lender within five (5) days after receipt of notice from Lender for all reasonable third-party, out-of-pocket costs and expenses
(including reasonable attorneys’ fees and disbursements) incurred by Lender in connection with (i) the preparation, negotiation, execution and delivery of this Agreement and the other Loan Documents and the consummation of the transactions
contemplated hereby and thereby and all the costs of furnishing all opinions by counsel for Borrower (including without limitation any opinions requested by Lender as to any legal matters arising under this Agreement or the other Loan Documents with
respect to the Property); (ii) Borrower’s ongoing performance of and compliance with Borrower’s respective agreements and covenants contained in this Agreement and the other Loan Documents on its part to be performed or complied with after
the Closing Date, including, without limitation, confirming compliance with environmental and insurance requirements; (iii) Lender’s ongoing performance and compliance with all agreements and conditions contained in this Agreement and the other
Loan Documents on its part to be performed or complied with after the Closing Date; (iv) the negotiation, preparation, execution, delivery and administration of any consents, amendments, waivers or other modifications to this Agreement and the other
Loan Documents and any other documents or matters requested by Lender; (v) securing Borrower’s compliance with any requests made pursuant to the provisions of this Agreement; (vi) the filing and recording fees and expenses, title insurance and
reasonable fees and expenses of counsel for providing to Lender all required legal opinions, and other similar expenses incurred in creating 

  

 103 

 
and perfecting the Liens in favor of Lender pursuant to this Agreement and the other Loan Documents; (vii) enforcing or preserving any rights, either in
response to third party claims or in prosecuting or defending any action or proceeding or other litigation, in each case against, under or affecting Borrower, this Agreement, the other Loan Documents, the Property, or any other security given for
the Loan; and (viii) enforcing any obligations of or collecting any payments due from Borrower under this Agreement, the other Loan Documents, or with respect to the Property or in connection with any refinancing or restructuring of the credit
arrangements provided under this Agreement in the nature of a “work-out” or of any insolvency or bankruptcy proceedings; provided, however, that Borrower shall not be liable for the payment of any such costs and expenses to
the extent the same arise by reason of the gross negligence, illegal acts, fraud or willful misconduct of Lender. Any cost and expenses due and payable to Lender may be paid, at Lender’s option, from any amounts in the Property Account.

  
 (b) Borrower shall indemnify, defend and hold
harmless Lender from and against any and all other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including, without limitation, the
reasonable fees and disbursements of counsel for Lender in connection with any investigative, administrative or judicial proceeding commenced or threatened, whether or not Lender shall be designated a party thereto), that may be imposed on, incurred
by, or asserted against Lender in any manner relating to or arising out of (i) any breach by Borrower of its obligations under, or any material misrepresentation by Borrower contained in, this Agreement or the other Loan Documents, or (ii) the use
or intended use of the proceeds of the Loan (collectively, the “Indemnified Liabilities”); provided, however, that Borrower shall not have any obligation to Lender hereunder to the extent that such Indemnified Liabilities
arise from the gross negligence, illegal acts, fraud or willful misconduct of Lender. To the extent that the undertaking to indemnify, defend and hold harmless set forth in the preceding sentence may be unenforceable because it violates any law or
public policy, Borrower shall pay the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Lender. 
  
 (c) Borrower covenants and agrees to pay for or, if Borrower
fails to pay, to reimburse Lender for, any fees and expenses incurred by any Rating Agency in connection with any Rating Agency review of the Loan, the Loan Documents or any transaction contemplated thereby up to a maximum sum of $20,000.00 or any
consent, approval, waiver or confirmation obtained from such Rating Agency pursuant to the terms and conditions of this Agreement or any other Loan Document and Lender shall be entitled to require payment of such fees and expenses as a condition
precedent to the obtaining of any such consent, approval, waiver or confirmation. 
  
 Section 10.14 Schedules Incorporated. The Schedules annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof. 
  
 Section 10.15 Offsets, Counterclaims and Defenses. Any assignee of
Lender’s interest in and to this Agreement, the Note and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such documents which Borrower may otherwise have against any
assignor of such documents, and no such unrelated 

  

 104 

 
counterclaim or defense shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon such documents and any such
right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrower. 
  
 Section 10.16 No Joint Venture or Partnership; No Third Party Beneficiaries. 
  
 (a) Borrower and Lender intend that the relationships created hereunder and under the other Loan Documents
be solely that of borrower and lender. Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Property other
than that of mortgagee, beneficiary or lender. 
  
 (b) This Agreement and the other Loan Documents are solely for the benefit of Lender and Borrower and nothing contained in this Agreement or the other Loan Documents shall be deemed to confer upon anyone other than Lender and Borrower any
right to insist upon or to enforce the performance or observance of any of the obligations contained herein or therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit of
Lender and no other Person shall have standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make the Loan (or any disbursement of Reserve Funds) in the absence of
strict compliance with any or all thereof and no other Person shall under any circumstances be deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender’s sole
discretion, Lender deems it advisable or desirable to do so. 
  
 Section 10.17 Publicity. Except as may be otherwise required by the requirements of the New York Stock Exchange and/or any other securities laws, all news releases, publicity or advertising by 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 Lender, CSFB, or any of their Affiliates shall be subject to the prior approval of Lender. 
  
 Section 10.18 Waiver of Marshalling of Assets. To the fullest extent
permitted by law, Borrower, for itself and its successors and assigns, waives all rights to a marshalling of the assets of Borrower, Borrower’s partners and others with interests in Borrower, and of the Property, or to a sale in inverse order
of alienation in the event of foreclosure of the Mortgage, and agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates of
decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents to a sale of the Property for the collection of the Debt and/or the Other Borrower Obligations without any prior or different resort
for collection or of the right of Lender to the payment of the Debt and/or the Other Borrower Obligations out of the net proceeds of the Property in preference to every other claimant whatsoever. 
  
 Section 10.19 Waiver of Offsets/Defenses/Counterclaims. Borrower
hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Lender or its agents or otherwise to offset any Obligations under the Loan 

  

 105 

 
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. 
  
 Section 10.20 Conflict; Construction of Documents; Reliance. In the event of any conflict between the provisions of this Agreement, any of the other Loan Documents, the provisions of this Agreement shall control. The parties hereto
acknowledge that they were represented by competent counsel in connection with the negotiation, drafting and execution of the Loan Documents and that such Loan Documents shall not be subject to the principle of construing their meaning against the
party which drafted same. Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering into the Loan without relying in any manner on any statements, representations or recommendations
of Lender or any parent, subsidiary or Affiliate of Lender. Lender shall not be subject to any limitation whatsoever in the exercise of any rights or remedies available to it under any of the Loan Documents or any other agreements or instruments
which govern the Loan or the Other Loans by virtue of the ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest any of them may acquire in Borrower, and Borrower hereby irrevocably waives the right to raise any
defense or take any action on the basis of the foregoing with respect to Lender’s exercise of any such rights or remedies. Borrower acknowledges that Lender engages in the business of real estate financings and other real estate transactions
and investments which may be viewed as adverse to or competitive with the business of Borrower or its Affiliates. 
  
 Section 10.21 Brokers and Financial Advisors. Borrower hereby represents that it has dealt with no financial advisors, brokers, underwriters,
placement agents, agents or finders in connection with the transactions contemplated by this Agreement. Borrower hereby agrees to indemnify, defend and hold Lender harmless from and against any and all claims, liabilities, costs and expenses of any
kind (including Lender’s attorneys’ fees and expenses) in any way relating to or arising from a claim by any Person that such Person acted on behalf of Borrower or Lender in connection with the transactions contemplated herein. The
provisions of this Section 10.21 shall survive the expiration and termination of this Agreement and the payment of the Debt. 
  
 Section 10.22 Prior Agreements. This Agreement and the other Loan Documents contain the entire agreement of the parties hereto and thereto in
respect of the transactions contemplated hereby and thereby, and all prior agreements among or between such parties, whether oral or written, between Borrower and Lender are superseded by the terms of this Agreement and the other Loan Documents.

  

 106 

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

					
	 FT. LAUDERDALE OWNER, LLC,

	 a Delaware limited liability company

		
	 By:
	 	 Ft. Lauderdale Manager, Inc.,
 its Managing Member

			
	 	 	 By:
	 	 /s/ MICHAEL HIGA

	 	 	 	 	 Name: Michael Higa
 Title: Vice President

	
	 COLUMN FINANCIAL, INC.

		
	 By:
	 	 /s/ JEFFREY A. ALTABEF

	 	 	 Name: Jeffrey A. Altabef
 Title: Vice President

  

 107 

 SCHEDULE I 
  
 Leases 
  
 (INCLUDES TENANT LEASES ONLY) 
  
 Wyndham – Ft. Lauderdale Airport: 
  

									
	 Lessor

	  	Lessee

	  	Lease Type

	  	Rate Amount

	 	Payment Frequency

	Wyndham-Ft. Lauderdale	  	SSOS USA Intl., Inc.	  	Gift Shop	  	$2,200	 	Monthly
	Airport	  	Innovus	  	ATM Machine	  	  Commission	 	Monthly
	 	  	Nextel Communications	  	Antenna Lease	  	$1,407.00*	 	Monthly
	 	  	AT&T Wireless	  	Antenna Lease	  	$810.00**	 	Monthly

  

	*	The current lease payment increases by 5% on 05/01/05, 05/01/06 and 05/01/07. 

  

	**	The current lease payment increases by 5% on 07/01/04. 

  

 SCHEDULE II 
  
 (Required Repairs - Deadlines For Completion) 
  
 —See Attached— 
  

 SCHEDULE III 
  
 (Organizational Structure) 
  
 —See Attached— 
  

 SCHEDULE IV 
  
 (Condemnation Disclosure Schedule) 
  

The FAA has told the Broward County Department of Aviation (DOA) that it needs to expand the Broward County airport’s south runway based on
estimates of future traffic growth. It is likely that the south runway must be expanded in the direction of Wyndham Ft. Lauderdale Airport Hotel due to environmental concerns in the opposite direction. However, the impact on the Wyndham property is
unknown because this project is very preliminary and there are several remaining open issues including: 
  

	*	Length of the runway expansion 

  

	*	Whether the runway will be elevated in whole or part 

  

	*	Funding 

  

	*	Environmental impact (including noise level impact on adjacent residential properties) 

  
 The DOA expects to have updates on these subjects later this year. 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE 1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	  	1
	 Section 1.1
	  	 Definitions
	  	1
	 Section 1.2
	  	 Principles of Construction
	  	24
		
	 ARTICLE 2 GENERAL TERMS
	  	25
	 Section 2.1
	  	 Loan Commitment; Disbursement to Borrower
	  	25
	 Section 2.2
	  	 Interest Rate
	  	25
	 Section 2.3
	  	 Loan Payment
	  	30
	 Section 2.4
	  	 Prepayments
	  	31
	 Section 2.5
	  	 Release of Property
	  	33
	 Section 2.6
	  	 Cash Management
	  	33
	 Section 2.7
	  	 Extension Options
	  	36
	 Section 2.8
	  	 Substitution
	  	37
		
	 ARTICLE 3 CONDITIONS PRECEDENT
	  	40
	 Section 3.1
	  	 Conditions Precedent to Closing
	  	40
		
	 ARTICLE 4 REPRESENTATIONS AND WARRANTIES
	  	43
	 Section 4.1
	  	 Borrower Representations
	  	43
	 Section 4.2
	  	 Survival of Representations
	  	51
		
	 ARTICLE 5 BORROWER COVENANTS
	  	51
	 Section 5.1
	  	 Affirmative Covenants
	  	51
	 Section 5.2
	  	 Negative Covenants
	  	60
		
	 ARTICLE 6 INSURANCE; CASUALTY; CONDEMNATION; REQUIRED REPAIRS
	  	69
	 Section 6.1
	  	 Insurance
	  	69
	 Section 6.2
	  	 Casualty
	  	73
	 Section 6.3
	  	 Condemnation
	  	74
	 Section 6.4
	  	 Restoration
	  	74
		
	 ARTICLE 7 RESERVE FUNDS
	  	79
	 Section 7.1
	  	 Required Repair Funds
	  	79
	 Section 7.2
	  	 Tax and Insurance Escrow Funds
	  	79
	 Section 7.3
	  	 FF&E Reserve
	  	80
	 Section 7.4
	  	 Intentionally Omitted
	  	81
	 Section 7.5
	  	 Debt Service Reserve
	  	81
	 Section 7.6
	  	 Reserve Funds, Generally
	  	82
		
	 ARTICLE 8 DEFAULTS
	  	83
	 Section 8.1
	  	 Event of Default
	  	83
	 Section 8.2
	  	 Remedies
	  	85

  

					
	 ARTICLE 9 SPECIAL PROVISIONS
	  	87
	 Section 9.1
	  	 Sale of Note and Securitization
	  	87
	 Section 9.2
	  	 Securitization Indemnification
	  	88
	 Section 9.3
	  	 [RESERVED]
	  	91
	 Section 9.4
	  	 Exculpation
	  	91
	 Section 9.5
	  	 Matters Concerning Manager
	  	94
	 Section 9.6
	  	 Servicer
	  	94
	 Section 9.7
	  	 Severance of Loan Documents
	  	94
		
	 ARTICLE 10 MISCELLANEOUS
	  	96
	 Section 10.1
	  	 Survival
	  	96
	 Section 10.2
	  	 Lender’s Discretion
	  	96
	 Section 10.3
	  	 Governing Law
	  	96
	 Section 10.4
	  	 Modification, Waiver in Writing
	  	98
	 Section 10.5
	  	 Delay Not a Waiver
	  	98
	 Section 10.6
	  	 Notices
	  	99
	 Section 10.7
	  	 Trial by Jury
	  	100
	 Section 10.8
	  	 Headings
	  	100
	 Section 10.9
	  	 Severability
	  	100
	 Section 10.10
	  	 Preferences
	  	100
	 Section 10.11
	  	 Waiver of Notice
	  	100
	 Section 10.12
	  	 Remedies of Borrower
	  	100
	 Section 10.13
	  	 Expenses; Indemnity
	  	101
	 Section 10.14
	  	 Schedules Incorporated
	  	102
	 Section 10.15
	  	 Offsets, Counterclaims and Defenses
	  	102
	 Section 10.16
	  	 No Joint Venture or Partnership; No Third Party Beneficiaries
	  	102
	 Section 10.17
	  	 Publicity
	  	103
	 Section 10.18
	  	 Waiver of Marshalling of Assets
	  	103
	 Section 10.19
	  	 Waiver of Offsets/Defenses/Counterclaims
	  	103
	 Section 10.20
	  	 Conflict; Construction of Documents; Reliance
	  	103
	 Section 10.21
	  	 Brokers and Financial Advisors
	  	104
	 Section 10.22
	  	 Prior Agreements
	  	104

  
 SCHEDULES

  

					
	 Schedule I
	  	–	  	 Leases

	 Schedule II
	  	–	  	 Required Repairs – Deadlines for Completion

	 Schedule III
	  	–	  	 Organizational Structure

	 Schedule IV
	  	–	  	 Condemnation Disclosure Schedule

  

 [New Jresey] 
  
 LOAN AGREEMENT 
  
 Dated as of June 21, 2004 
  
 between 
  
 SUMMERFIELD HANOVER OWNER, LLC, 
  
 as Borrower 
  
 and

  
 COLUMN FINANCIAL, INC., 
  
 as Lender 
  
 ADJUSTABLE RATE PROPERTY LOAN 
  

 LOAN AGREEMENT 
  
 THIS LOAN AGREEMENT, dated as of June 21, 2004 (as amended, restated, replaced, supplemented or otherwise modified from time
to time, this “Agreement”), between COLUMN FINANCIAL, INC., having an address at 11 Madison Avenue, New York, New York 10010 (“Lender”) and SUMMERFIELD HANOVER OWNER, LLC, having its principal place of business c/o
Wyndham International, Inc., 1950 Stemmons Freeway, Suite 6001, Dallas, Texas 75207 (“Borrower”). 
  
 W I T N E S S E T H : 
  
 WHEREAS, Borrower desires to obtain the Loan (as hereinafter defined) from Lender; and 
  
 WHEREAS, Lender is willing to make the Loan to Borrower, subject to and in accordance with the terms and conditions of this Agreement and the other Loan
Documents (as hereinafter defined). 
  
 NOW THEREFORE, in
consideration of the making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto hereby covenant, agree, represent and warrant as follows: 
  
 ARTICLE 1 
  
 DEFINITIONS; PRINCIPLES OF CONSTRUCTION 
  
 Section 1.1 Definitions. For all purposes of this Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent: 
  
 “Acceptable Counterparty” shall mean any counterparty to the Interest Rate Cap Agreement that (a) has and
shall maintain, until the expiration of the applicable Interest Rate Cap Agreement, a long-term unsecured debt rating of at least “A+” by S&P and “A1” from Moody’s, which rating shall not include a “t” or
otherwise reflect a termination risk or (b) is otherwise acceptable to the Rating Agencies. Lender hereby acknowledges and agrees that, as of the date hereof, JP Morgan Chase is an Acceptable Counterparty. 
  
 “Acquired Property” shall have the meaning set forth in
Section 5.1.11(d)(i) hereof. 
  
 “Acquired Property
Statements” shall have the meaning set forth in Section 5.1.11(d)(i) hereof. 
  
 “Additional Due Diligence Materials” shall mean, in respect of a Substitute Property, appraisals, engineering reports, environmental reports, survey, title insurance policies, insurance
policies, financial statements (relating to the Substitute Property, Borrower, the Significant Parties and such other Persons as Lender shall reasonably require), financial and market projections, marketing reports, opinions of counsel, resolutions,
consents and other due diligence materials customarily required by Lender or any Rating Agency (in their respective sole 

  

 
discretion) in respect of loan transactions similar to the transactions contemplated hereby and relating to properties similar to the Substitute Property.

  
 “Additional Insolvency Opinion”
shall have the meaning set forth in Section 4.1.30(c) hereof. 
  
 “Adjusted Release Amount” shall mean, the amount which is equal to 120% of the Outstanding Principal Balance as of the date of such release. 
  
 “Affiliate” shall mean, as to any Person, any other Person that, directly or indirectly, is in control of,
is controlled by or is under common control with such Person or is a director or officer of such Person or of an Affiliate of such Person. 
  
 “Affiliated Loans” shall mean a loan (including, without limitation, the Other Loans) made by Lender to an Affiliate of Borrower or
Guarantor. 
  
 “Affiliated Manager” shall mean
any Manager in which Borrower, Principal or Guarantor has, directly or indirectly, any legal, beneficial or economic interest. 
  
 “Aggregate Debt Service” shall mean with respect to any particular period of time, scheduled principal and/or interest payments due on
the Other Loans and the Loan then outstanding. 
  
 “Aggregate Debt Service Coverage Ratio” shall mean, with respect to the Other Properties then remaining subject to the Liens of the Other Mortgages and the Property, in respect of the relevant period, the ratio of: (i) the
Aggregate Net Operating Income (excluding interest on credit accounts) of such Other Properties and the Property for the relevant period to (ii) the applicable Aggregate Debt Service as determined in accordance with the definition of Aggregate Debt
Service set forth herein. 
  
 “Aggregate Gross
Income” shall mean, for any period, the sum of “Gross Income from Operations” (as defined in, and as computed in accordance with, the applicable Other Borrower Loan Documents) of each of the Other Properties then remaining subject
to the Liens of the Other Mortgages and Gross Income from Operations of the Property. 
  
 “Aggregate Net Cash Flow” shall mean, for any period, the sum of (a) Net Cash Flow and (b) Net Cash Flow (as defined in, and computed in accordance with, the applicable Other Borrower Loan Documents)
of each of the Other Properties then remaining subject to the Liens of the Other Mortgages. 
  
 “Aggregate Net Operating Income” shall mean, for any period, the excess of (x) the Aggregate Gross Income over (y) the Aggregate Operating Expenses. 
  
 “Aggregate Operating Expenses” shall mean, in respect of the
relevant period, the sum of Operating Expenses of the Property and “Operating Expenses” (as defined in, and as computed in accordance with, the applicable Other Borrower Loan Documents) of each of the Other Properties then remaining
subject to the Liens of the Other Mortgages. 
  

 2 

 “ALTA” shall mean American Land Title Association, or any successor thereto. 

 
 “Annual Budget” shall mean the operating budget,
including all planned Capital Expenditures, for the Property prepared by Borrower for the applicable calendar year or other period. 
  
 “Annual FF&E Budget” shall mean that portion of the Annual Budget providing for FF&E expenditures. 
  
 “Applicable Interest Rate” shall mean the rate or rates at
which the Outstanding Principal Balance bears interest from time to time in accordance with the provisions of Section 2.2.3 hereof. 
  
 “Approved Annual Budget” shall have the meaning set forth in Section 5.1.11(j) hereof. 
  
 “Approved Annual FF&E Budget” shall have the meaning set
forth in Section 5.1.11(j) hereof. 
  
 “Assignment
of Leases” shall mean that certain first priority Assignment of Leases and Rents, dated as of the date hereof, from Borrower, as assignor, to Lender, as assignee, assigning to Lender all of Borrower’s interest in and to the Leases and
Rents of the Property as security for the Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Assignment of Management Agreement” shall mean that certain Assignment of Management Agreement and Subordination of Management Fees,
dated as of the date hereof, among Lender, Borrower and Manager, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Award” shall mean any compensation paid by any Governmental Authority in connection with a Condemnation.

  
 “Bankruptcy Action” shall mean with respect
to any Person: (a) such Person filing a voluntary petition under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (b) the filing of an involuntary petition against such Person under the Bankruptcy Code or any other
Federal or state bankruptcy or insolvency law, or soliciting such Person or causing to be solicited petitioning creditors for any involuntary petition against such Person; (c) such Person filing an answer consenting to or otherwise acquiescing in or
joining in any involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited petitioning creditors for any involuntary
petition from any Person; (d) such Person consenting to or acquiescing in or joining in an application for the appointment of a custodian, receiver, trustee, or examiner for such Person or any portion of the Property; or (e) such Person making an
assignment for the benefit of creditors, or admitting, in writing or in any legal proceeding, its insolvency or inability to pay its debts as they become due. 
  

“Basic Carrying Costs” shall mean, for any period, the sum of the following costs: (a) Taxes, (b) Other Charges, and (c) Insurance
Premiums. 
  

 3 

 “Borrower” shall have the meaning set forth in the introductory paragraph hereto,
together with its successors and permitted assigns. 
  
 “Borrower Guaranty” shall mean that certain Borrower Guaranty Agreement, dated as of the date hereof, from Borrower in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time. 
  
 “Breakage Costs” shall have the
meaning set forth in Section 2.2.3(h) hereof. 
  
 “Business Day” shall mean any day other than a Saturday, Sunday or any other day on which national banks in New York, New York are not open for business. 
  
 “Capital Expenditures” shall mean, for any period, the amount expended for items capitalized under GAAP
(including expenditures for building improvements or major repairs, leasing commissions and tenant improvements). 
  
 “Cash Management Account” shall have the meaning set forth in Section 2.6.3(a) hereof. 
  
 “Cash Management Agreement” shall mean that certain Cash
Management Agreement, dated as of the date hereof, by and among Borrower and Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Casualty” shall have the meaning set forth in Section 6.2 hereof. 
  
 “Casualty Consultant” shall have the meaning set forth in
Section 6.4(b)(iii) hereof. 
  
 “Casualty
Retainage” shall have the meaning set forth in Section 6.4(b)(iv) hereof. 
  
 “Closing Date” shall mean the date of the funding of the Loan. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended, as it may be further amended from time to time, and any successor
statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 
  
 “Collateral Assignment of Interest Rate Cap Agreement” shall mean a Collateral Assignment of Interest Rate Cap Agreement, in
substantially the same form and content attached hereto as Exhibit A, executed by Borrower in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

  
 “Condemnation” shall mean a temporary or
permanent taking by any Governmental Authority as the result or in lieu or in anticipation of the exercise of the right of condemnation or eminent domain, of all or any part of the Property, or any interest therein or right accruing thereto,
including any right of access thereto or any change of grade affecting the Property or any part thereof. 
  
 “Condemnation Proceeds” shall have the meaning set forth in Section 6.4(b) hereof. 
  

 4 

 “Counterparty” shall mean, with respect to the Interest Rate Cap Agreement and any
Replacement Interest Rate Cap Agreement, any Acceptable Counterparty. 
  
 “Covered Disclosure Information” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “CSFB” shall mean Credit Suisse First Boston Corporation and its successors in interest. 
  
 “Debt” shall mean the Outstanding Principal Balance,
together with all interest accrued and unpaid thereon and all other sums (including any Prepayment Premium) due to Lender in respect of the Loan under the Note, this Agreement, the Mortgage and the other Loan Documents. 
  
 “Debt Service” shall mean, with respect to any particular
period of time, scheduled principal and/or interest payments due under this Agreement and the Note. 
  
 “Debt Service Coverage Ratio” shall mean a ratio for the applicable period in which: 
  
 (a) the numerator is the Net Operating Income (excluding
interest on credit accounts) for the twelve (12) month period immediately preceding the date of determination for which financial statements are available; and 
  

(b) the denominator is the amount of interest paid on the Note for the trailing twelve (12) month period immediately preceding the date
of determination for which financial statements are available calculated at the interest rate computed in accordance with the provisions of this Agreement at a deemed annual rate of 11.33%. 
  
 “Debt Service Reserve” shall mean have the meaning set forth
in Section 7.5. 
  
 “Debt Service Reserve
Account” shall mean have the meaning set forth in Section 7.5. 
  
 “Debt Service Reserve Funds” shall mean have the meaning set forth in Section 7.5. 
  
 “Decorative Changes” shall mean any alterations or change to the Improvements that are made primarily for decorative or cosmetic purposes
(e.g. painting, wallpapering, carpeting, FF&E etc.) that: (a) will not have a Material Adverse Effect, and (b) do not affect or involve (other than in a decorative or cosmetic manner) any structural component of any Improvements, any utility or
HVAC system contained in any Improvements or the exterior of any building constituting a part of any Improvements. 
  
 “Default” shall mean the occurrence of any event hereunder or under any other Loan Document which, but for the giving of notice or
passage of time, or both, would be an Event of Default. 
  
 “Default Rate” shall mean a rate per annum equal to the lesser of (a) the Maximum Legal Rate, and (b) four percent (4%) above the Applicable Interest Rate. 
  

 5 

 “Determination Date” shall mean, with respect to any Interest Period, the date that is
two (2) London Business Days prior to the fifteenth (15th) day of the calendar month in which such Interest Period commences. 
  
 “Disclosure Document” shall mean a prospectus, prospectus supplement, private placement memorandum, offering memorandum, offering
circular, term sheet, road show presentation materials or other offering documents or marketing materials, in each case in preliminary or final form, used to offer Securities in connection with a Securitization. 
  
 “Eligibility Requirements” means, with respect to any
Person, that such Person (i) has total assets (in name or under management) in excess of $50,000,000 and (ii) is regularly engaged in the business of making investments in or operating hotels. 
  
 “Eligible Account” shall mean a separate and identifiable
account from all other funds held by the holding institution that is either (a) an account or accounts maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution or
(b) a segregated trust account or accounts maintained with a federal or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository institution or trust company, is
subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal and state authority. An Eligible Account will
not be evidenced by a certificate of deposit, passbook or other instrument. 
  
 “Eligible Institution” shall mean a depository institution or trust company, the short term unsecured debt obligations or commercial paper of which are rated at least “A-1+” by S&P,
“P-1” by Moody’s and “F-1+” by Fitch in the case of accounts in which funds are held for thirty (30) days or less (or, in the case of accounts in which funds are held for more than thirty (30) days, the long term unsecured
debt obligations of which are rated at least “AA” by Fitch and S&P and “Aa2” by Moody’s). Lender hereby acknowledges and agrees that, as of the date hereof, each of Wachovia, JP Morgan Chase and Wells Fargo is deemed to
be an Eligible Institution. 
  
 “Embargoed
Person” shall have the meaning set forth in Section 4.1.35 hereof. 
  
 “Engineering Report” shall mean that certain report dated March 12, 2004 prepared by Professional Service Industries, Inc. with respect to the Property. 
  
 “Environmental Indemnity” shall mean that certain
Environmental Indemnity Agreement, dated as of the date hereof, executed by Borrower and Guarantor in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to
time. 
  
 “Equipment” shall have the meaning set
forth in the granting clause of the Mortgage. 
  
 “Equity
Pledge Agreement” shall mean that certain Equity Pledge and Security Agreement, dated as of the date hereof, executed by Summerfield Hanover Manager, Inc. a Delaware corporation, and Patriot American Hospitality Partnership, L.P., a
Virginia limited 

  

 6 

 
partnership, in connection with, and securing, the Loan and the Other Loans for the benefit of Lender, as the same may have been, or may hereafter be,
amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
  
 “Event of Default” shall have the meaning set forth in Section 8.1(a) hereof. 
  
 “Excess Cash Flow” shall have the meaning set forth in
Section 2.6.3(b) hereof. 
  
 “Exchange
Act” shall have the meaning set forth in Section 9.2(a) hereof. 
  
 “Exchange Act Filing” shall have the meaning set forth in Section 5.1.11(g) hereof. 
  
 “Extension Notice” shall have the meaning set forth in Section 2.7.1 hereof. 
  
 “Extraordinary Expense” shall have the meaning set forth in
Section 5.1.11(k) hereof. 
  
 “FF&E”
shall mean furniture, fixtures and equipment and other replacements and repairs required to be made to the Property during the applicable calendar year. 
  
 “FF&E Reserve Account” shall have the meaning set forth in Section 7.3.1 hereof. 
  
 “FF&E Reserve Deposit” shall have the meaning set forth
in Section 7.3.1 hereof. 
  
 “FF&E Reserve
Funds” shall have the meaning set forth in Section 7.3.1 hereof. 
  
 “Financing Leases” shall have the meaning set forth in Section 5.2.10(f). 
  
 “First Extension Commencement Date” shall have the meaning set forth in Section 2.7.1 hereof. 
  
 “First Extension Term” shall have the meaning set forth in
Section 2.7.1 hereof. 
  
 “Fiscal
Year” shall mean each twelve (12) month period commencing on January 1 and ending on December 31 during each year of the term of the Loan. 
  
 “Fitch” shall mean Fitch IBCA, Inc. 
  
 “Foreign Taxes” shall have the meaning set forth in Section 2.2.3(e) hereof. 
  
 “Franchise Agreement” shall have the meaning set forth in
Section 5.2.12(a) hereof. 
  
 “Franchisor”
shall have the meaning set forth in Section 5.2.12 hereof. 
  
 “GAAP” shall mean generally accepted accounting principles in the United States of America as of the date of the applicable financial report. 
  

 7 

 “Governmental Authority” shall mean any court, board, agency, commission, office or
other authority of any nature whatsoever for any governmental unit (federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence having jurisdiction over Borrower, Lender and/or the Property. 
  
 “Gross Income from Operations” shall mean, for any period,
all Rents; provided, however, that Gross Income from Operations shall not include: (a) non-recurring income and non-Property related income (as determined by Lender in its reasonable discretion), (b) security deposits received from any
tenant unless and until the same are applied to rent or any other of such tenant’s obligations in accordance with the terms of such tenant’s Lease, (c) any loan proceeds or proceeds of capital or equity contributions received by Borrower,
(d) gratuities or service charges or other similar receipts which are to be paid over to Property employees or persons occupying similar positions for performing similar duties, (e) Insurance Proceeds (other than Insurance Proceeds from business or
rental interruption coverage) and Condemnation Proceeds, (f) excise taxes, sales taxes, use taxes, bed taxes, admission taxes, tourist taxes, gross receipts taxes, value added taxes, entertainment taxes, or other taxes or similar charges payable to
any Governmental Authority, (g) proceeds from the sale of FF&E no longer required for the operation of the Property, and (h) Rents from month-to-month tenants or tenants that are included in any Bankruptcy Action. Any credit or refunds to guests
and patrons with respect to amounts previously included in Gross Income from Operations shall be deducted from Gross Income from Operations in the period when such credit or refund is issued. 
  
 “Guarantor” shall mean Wyndham International, Inc., a
Delaware corporation. 
  
 “Guaranty” shall mean
that certain Guaranty Agreement (Recourse), dated as of the date hereof, from Guarantor in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Improvements” shall have the meaning set forth in the
granting clause of the Mortgage. 
  
 “Indebtedness” shall mean, for any Person, on a particular date, the sum (without duplication) at such date of: (a) all indebtedness or liability of such Person (including, without limitation, amounts for borrowed money and
indebtedness in the form of mezzanine debt and preferred equity); (b) obligations evidenced by bonds, debentures, notes, or other similar instruments; (c) obligations for the deferred purchase price of property or services (including trade
obligations); (d) obligations under letters of credit; (e) obligations under acceptance facilities; (f) all guaranties, endorsements (other than for collection or deposit in the ordinary course of business) and other contingent obligations to
purchase, to provide funds for payment, to supply funds, to invest in any Person or entity, or otherwise to assure a creditor against loss; and (g) obligations secured by any Liens, whether or not the obligations have been assumed. 
  
 “Indemnified Liabilities” shall have the meaning set forth
on Section 10.13(b) hereof. 
  
 “Indemnified
Person” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “Indemnifying Person” shall mean each of Borrower, Principal and Guarantor. 
  

 8 

 “Independent Director” or “Independent Manager” shall mean a Person who
is not at the time of initial appointment, or at any time while serving as a director or manager, as applicable, and has not been at any time during the preceding five (5) years: (a) a stockholder, director (with the exception of serving as an
Independent Director or Independent Manager), officer, employee, partner, member, attorney or counsel of Principal, Borrower or any Affiliate of either of them; (b) a customer, supplier or other Person who derives any of its purchases or revenues
from its activities with Principal, Borrower or any Affiliate of either of them (with the exception of serving as an Independent Director or Independent Manager); (c) a Person controlling or under common control with any such stockholder, director,
officer, partner, member, customer, supplier or other Person; or (d) a member of the immediate family of any such stockholder, director, officer, employee, partner, member, customer, supplier or other Person. As used in this definition, the term
“control” means the possession, directly or indirectly, of the power to direct or cause the direction of management, policies or activities of a Person, whether through ownership of voting securities, by contract or otherwise.

  
 “Initial Maturity Date” shall mean July 9,
2006. 
  
 “Insolvency Opinion” shall mean that
certain non-consolidation opinion letter dated the date hereof delivered by Sidley Austin Brown & Wood LLP in connection with the Loan. 
  
 “Insurance Premiums” shall have the meaning set forth in Section 6.1(b) hereof. 
  
 “Insurance Proceeds” shall have the meaning set forth in
Section 6.4(b) hereof. 
  
 “Interest
Period” shall mean, with respect to any Payment Date, the period commencing on the ninth (9th) day of the preceding calendar month and terminating on the eighth (8th) day of the calendar month in which such Payment Date occurs; provided,
however, that no Interest Period shall end later than the Maturity Date (other than for purposes of calculating interest at the Default Rate), and the initial Interest Period shall begin on the Closing Date and shall end on the immediately
following eighth (8th) day of the calendar month. 
  
 “Interest Rate Cap Agreement” shall mean, as applicable, an Interest Rate Cap Agreement (together with the confirmation and schedules relating thereto) in form and substance reasonably satisfactory to Lender between
Borrower and an Acceptable Counterparty or a Replacement Interest Rate Cap Agreement. 
  
 “Junior Lender Security Documents” shall mean the Borrower Guaranty, the Second Mortgage and any other mortgage, deed of trust, deed to secure debt or other similar instrument encumbering the Property
or any portion thereof, the Equity Pledge Agreement or other pledge agreement or other grant of Lien encumbering any of the direct ownership interests in the Borrower and securing, among other things, the Other Loans or any portion thereof.

  
 “Lease” shall mean any lease, sublease or
subsublease, letting, license, concession or other agreement (whether written or oral and whether now or hereafter in effect) pursuant to which any Person is granted a possessory interest in, or right to use or occupy all or any portion of any space
in the Property, and (a) every modification, amendment or other agreement relating to such lease, sublease, subsublease, or other agreement entered into in connection with such lease, sublease, subsublease, or other agreement, and (b) every
guarantee of the performance and 

  

 9 

 
observance of the covenants, conditions and agreements to be performed and observed by the other party thereto. 
  
 “Legal Requirements” shall mean all federal, state, county,
municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities affecting the Property or any part thereof, or the construction, use, alteration or operation
thereof, or any part thereof, whether now or hereafter enacted and in force, including, without limitation, the Americans with Disabilities Act of 1990, and all permits, licenses and authorizations and regulations relating thereto, and all
covenants, agreements, restrictions and encumbrances contained in any instruments, either of record or known to Borrower, at any time in force affecting the Property or any part thereof, including, without limitation, any which may (a) require
repairs, modifications or alterations in or to the Property or any part thereof, or (b) in any way limit the use and enjoyment thereof. 
  
 “Lender” shall have the meaning set forth in the introductory paragraph hereto, together with its successors and assigns. 
  
 “Letter of Credit” shall mean an irrevocable, unconditional
and transferable letter of credit acceptable to Lender and the Rating Agencies (either an annual, automatically renewing, letter of credit or one which does not expire until at least ten (10) Business Days after the Maturity Date) in favor of Lender
and entitling Lender to draw thereon in the continental United States, issued by a domestic Eligible Institution or the U.S. agency or branch of a foreign Eligible Institution. 
  
 “Liabilities” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “LIBOR” shall mean, with respect to each Interest Period,
the rate (expressed as a percentage per annum, for a one-month period, that appears on Telerate Page 3750 (or the successor thereto) as of 11:00 a.m., London time, on the related Determination Date. If such rate does not appear on Telerate Page 3750
as of 11:00 a.m., London time, on such Determination Date, LIBOR shall be the arithmetic mean of the offered rates (expressed as a percentage per annum) for deposits in U.S. dollars for a one-month period that appear on the Reuters Screen Libor Page
as of 11:00 a.m., London time, on such Determination Date, if at least two such offered rates so appear. If fewer than two such offered rates appear on the Reuters Screen Libor Page as of 11:00 a.m., London time, on such Determination Date, Lender
shall request the principal London office of any four major reference banks in the London interbank market selected by Lender 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 a one-month period as of 11:00 a.m., London time, on such Determination Date for the amounts of not less than U.S. $1,000,000. If at least two such offered quotations are so provided, LIBOR shall be the
arithmetic mean of such quotations. If fewer than two such quotations are so provided, Lender shall request any three major banks in New York City selected by Lender to provide such bank’s rate (expressed as a percentage per annum) for loans in
U.S. dollars to leading European banks for a one-month period as of approximately 11:00 a.m., New York City time on the applicable Determination Date for amounts of not less than U.S. $1,000,000. If at least two such rates are so provided, LIBOR
shall be the arithmetic mean of such rates. LIBOR shall be determined conclusively by Lender or its agent. 
  

 10 

 “LIBOR Loan” shall mean the Loan at such time as interest thereon accrues at a rate of
interest based upon LIBOR. 
  
 “Licenses” shall
have the meaning set forth in Section 4.1.22 hereof. 
  
 “Lien” shall mean any mortgage, deed of trust, lien, pledge, hypothecation, easement, restrictive covenant, preference, assignment, security interest or any other encumbrance, charge or transfer of, or any agreement to
enter into or create, any of the foregoing, on or affecting Borrower, the Property or any portion thereof or any interest therein, or any direct or indirect interest in Borrower or Principal, including, without limitation, any conditional sale or
other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, the filing of any financing statement, and mechanic’s, materialmen’s and other similar liens and encumbrances.

  
 “Loan” shall mean the loan in the original
principal amount of FIVE MILLION EIGHT HUNDRED THOUSAND AND NO/100 DOLLARS ($5,800,000.00), made by Lender to Borrower pursuant to this Agreement. 
  
 “Loan Documents” shall mean, collectively, this Agreement, the Note, the Mortgage, the Assignment of Leases, the Environmental Indemnity,
the Assignment of Management Agreement, the Guaranty, the Cash Management Agreement, the Property Account Agreement, the Equity Pledge Agreement, the Collateral Assignment of Interest Rate Cap Agreement, the Junior Lender Security Documents and all
other documents executed and/or delivered in connection with the Loan. 
  
 “London Business Day” shall mean any day other than a Saturday, Sunday or any other day on which commercial banks in London, England are not open for business. 
  
 “Management Agreement” shall mean the management agreement entered into by and between Borrower and the
Manager, as the same has been and may be amended, modified or supplemented from time to time, pursuant to which the Manager is to provide management and other services with respect to the Property, or, if the context requires, the Replacement
Management Agreement. 
  
 “Manager” shall mean
Summerfield Hotel Company, L.P., a Kansas limited partnership, or, if the context requires, a Qualified Manager who is managing the Property in accordance with the terms and provisions of this Agreement. 
  
 “Material Adverse Effect” shall mean any material adverse
change in the use, operation or value of the Property and/or the business operations and/or the financial condition of a Significant Party. 
  
 “Maturity Date” shall mean the Initial Maturity Date (as the same may be extended in accordance with Sections 2.7 hereof), or such
other date on which the final payment of principal of the Note becomes due and payable as therein or herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise. 
  

 11 

 “Maximum Legal Rate” shall mean the maximum nonusurious interest rate, if any, that at
any time or from time to time may be contracted for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents, under the laws of such state or states whose laws are held by
any court of competent jurisdiction to govern the interest rate provisions of the Loan. 
  
 “Mezzanine Borrower” shall mean the obligor under any Mezzanine Loan, which entity shall meet the requirements set forth in Section 9.8(b) hereof. 
  
 “Mezzanine Loan” shall have the meaning set forth in
Section 9.8 hereof. 
  
 “Mezzanine Option”
shall have the meaning set forth in Section 9.8 hereof. 
  
 “Moody’s” shall mean Moody’s Investors Service, Inc. 
  
 “Monthly Interest Payment” shall have the meaning set forth in Section 2.3.1. 
  
 “Mortgage” shall mean that certain first priority Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated
the date hereof, executed and delivered by Borrower as security for the Loan and encumbering the Property, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Mortgage Borrower” shall have the meaning set forth in
Section 9.8 hereof. 
  
 “Mortgage Loan”
shall have the meaning set forth in Section 9.8 hereof. 
  
 “Mortgage Lender” shall have the meaning set forth in Section 9.8 hereof. 
  
 “Net Cash Flow” shall mean, for any period, the amount obtained by subtracting (a) Operating Expenses and (b) an amount equal to four
percent (4%) of Gross Income from Operations for such period, from Gross Income from Operations for such period. 
  
 “Net Cash Flow Schedule” shall have the meaning set forth in Section 5.1.11(b) hereof. 
  
 “Net Cash Flow Failure” shall mean that, at the end of any
calendar quarter, the Aggregate Net Cash Flow for the preceding twelve (12) month period is less than eighty percent (80%) of the Aggregate Net Cash Flow as of the Closing Date, as determined by Lender in its sole discretion, and in each case
determining such amounts only for the Property and such Other Properties remaining subject to the liens of the Other Mortgages as of the date such determination is made. 
  
 “Net Operating Income” shall mean, for any period, the amount obtained by subtracting Operating Expenses
for such period from Gross Income from Operations for such period. 
  
 “Net Proceeds” shall have the meaning set forth in Section 6.4(b) hereof. 
  
 “Net Proceeds Deficiency” shall have the meaning set forth in Section 6.4(b)(vi) hereof. 
  

 12 

 “Note” shall mean that certain Promissory Note of even date herewith in the principal
amount of FIVE MILLION EIGHT HUNDRED THOUSAND AND NO/100 DOLLARS ($5,800,000.00), made by Borrower in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Notice” shall have the meaning set forth in Section
10.6 hereof. 
  
 “Obligations” shall mean,
collectively, Borrower’s obligations for the payment of the Debt and the performance of the Other Obligations. 
  
 “Offering Document Date” shall have the meaning set forth in Section 5.1.11(d)(iv) hereof. 
  
 “Officer’s Certificate” shall mean a certificate
delivered to Lender by Borrower which is signed by an authorized senior officer of the general partner or managing member of Borrower, as applicable, and solely with respect to the delivery of financial statements required pursuant to Section
5.1.11 hereof, such certificate may also be signed by an authorized senior officer of Manager. 
  
 “Operating Expenses” shall mean, for any period, the total of all expenses, computed in accordance with GAAP, of whatever kind relating
to the operation, maintenance and/or management of the Property, which expenditures are incurred on a regular monthly or other periodic basis, including without limitation, utilities, ordinary repairs and maintenance, insurance, license fees,
property taxes and assessments, advertising expenses, management fees, payroll and related taxes, computer processing charges, operational equipment or other lease payments as approved by Lender, and other similar costs, but excluding depreciation,
Debt Service, Capital Expenditures, and contributions to the FF&E Reserve Funds, the Tax and Insurance Escrow Funds, the Debt Service Reserve Funds and any other reserves required under the Loan Documents. 
  
 “Other Borrowers” shall mean, individually or collectively,
Wyndham Commerce Owner, LLC, Ft. Lauderdale Owner, LLC, and PAH-Tampa, L.P. 
  
 “Other Borrower Loan Documents” shall mean, the loan agreements, the promissory notes, the mortgages, the deeds of trust, the assignments of leases and rents, and every other document or agreement
executed by the Other Borrowers, or any of them, or any other Person for the benefit of Lender, securing, evidencing or otherwise executed in connection with any one or more of the Other Loans and/or the Loan, as any of the same may hereafter be
amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Other Borrower Obligations” shall mean the Other Loans together with all obligations of every Other Borrower under the Other Borrower Loan Documents. 
  
 “Other Charges” shall mean all maintenance charges,
impositions other than Taxes, and any other charges, in each case imposed by Governmental Authorities, including, without limitation, vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Property, now or
hereafter levied or assessed or imposed against the Property or any part thereof. 
  

 13 

 “Other Loan Agreements” shall mean each Loan Agreement entered into between any Other
Borrower and Lender in respect of the applicable Other Loan. 
  
 “Other Loan” shall mean the other loans made by Lender to the Other Borrowers. 
  
 “Other Loan Shortfall” shall have the meaning set forth in Section 2.6.3(b) hereof. 
  
 “Other Mortgages” shall mean the other mortgages granted by
the Other Borrowers to, or in favor of, Lender with respect to the Other Properties. 
  
 “Other Property” shall mean, collectively, each parcel of real property (other than the Property) together with the improvements thereon and other real property appurtenant thereto securing any one or
more of the Other Loans. 
  
 “Other Obligations”
shall mean: (a) the performance of all obligations of Borrower contained herein; (b) the performance of each obligation of Borrower contained in any other Loan Document; and (c) the performance of each obligation of Borrower contained in any
renewal, extension, amendment, modification, consolidation, change of, substitution of, or replacement for, all or any part of this Agreement, the Note or any other Loan Documents. 
  
 “Outstanding Principal Balance” shall mean, as of any date, the outstanding principal balance of the Loan.

  
 “Payment Date” shall mean the ninth (9th) day
of each calendar month during the term of the Loan or, if such day is not a Business Day, the immediately preceding Business Day. 
  
 “Payment Direction Letters” shall have the meaning set forth in Section 2.6.1. 
  
 “Permitted Encumbrances” shall mean, collectively (a) the
Liens and security interests created by the Loan Documents, (b) all Liens, encumbrances and other matters disclosed in the Title Insurance Policy, (c) Liens, if any, for Taxes imposed by any Governmental Authority not yet due or delinquent, (d)
Financing Leases permitted pursuant to the provisions of this Agreement, and (e) such other title and survey exceptions as Lender has approved or may approve in writing in Lender’s sole discretion. 
  
 “Permitted Investments” shall have the meaning set forth in
the Cash Management Agreement. 
  
 “Person” shall
mean any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association, any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary
acting in such capacity on behalf of any of the foregoing. 
  
 “Personal Property” shall have the meaning set forth in the granting clause of the Mortgage. 
  
 “Physical Conditions Report” shall mean a report prepared by a company satisfactory to Lender regarding the physical condition of the
Property, satisfactory in form and substance to 

  

 14 

 
Lender in its sole discretion, which report shall, among other things, (i) confirm that the Property and its use comply, in all material respects, with all
applicable Legal Requirements (including zoning, subdivision and building codes and laws), and (ii) include a copy of a final certificate of occupancy with respect to all Improvements (unless previously delivered to Lender). 
  
 “Policies” shall have the meaning specified in Section
6.1(b) hereof. 
  
 “Prepayment Premium” shall
mean an amount equal to the following: one percent (1.0%) of the principal balance of the Loan being prepaid if the prepayment occurs on or after the date hereof through, and including, June 9, 2005. 
  
 “Prime Rate” shall mean the annual rate of interest publicly
announced by Citibank, N.A. in New York, New York, as its base rate, as such rate shall change from time to time. If Citibank, N.A. ceases to announce a base rate, Prime Rate shall mean the rate of interest published in The Wall Street
Journal from time to time as the “Prime Rate.” If more than one “Prime Rate” is published in The Wall Street Journal for a day, the average of such “Prime Rates” shall be used, and such average shall be
rounded up to the nearest one-hundredth (1/100th) of one percent. If The Wall Street Journal ceases to
publish the “Prime Rate,” Lender shall select an equivalent publication that publishes such “Prime Rate,” and if such “Prime Rates” are no longer generally published or are limited, regulated or administered by a
governmental or quasigovernmental body, then Lender shall select a comparable interest rate index. 
  
 “Prime Rate Loan” shall mean the Loan at such time as interest thereon accrues at a rate of interest based upon the Prime Rate.

  
 “Prime Rate Spread” shall mean the difference
(expressed as the number of basis points) between (a) LIBOR plus the Spread on the date LIBOR was last applicable to the Loan and (b) the Prime Rate on the date that LIBOR was last applicable to the Loan; provided, however, in no event shall
such difference be a negative number. 
  
 “Principal” shall mean the Special Purpose Entity corporation which is the managing member of Borrower. 
  
 “Property” shall mean each parcel of real property, the Improvements thereon and all personal property owned by Borrower and encumbered
by the Mortgage, together with all rights pertaining to such property and Improvements, as more particularly described in the granting clause of the Mortgage and referred to therein as the “Property”. 
  
 “Property Account” shall have the meaning set forth in
Section 2.6.1(a) hereof. 
  
 “Property Account
Agreement” shall mean that certain Property Account Agreement, dated as of the date hereof, by and among Borrower, Lender and Property Account Bank, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time. 
  
 “Property Account Bank” shall
mean Wachovia Bank, National Association, or any successor or permitted assigns thereof. 
  

 15 

 “Provided Information” shall mean any and all financial and other information provided
at any time by, or on behalf of, any Indemnifying Person with respect to the Property, any Significant Party and/or an Affiliated Manager. 
  
 “Public Company” shall mean a corporation or other Person whose stock or ownership interests or (ii) depository receipts or their
equivalent are publicly traded on a nationally recognized stock exchange, including, without limitation, NASDAQ or on the leading recognized stock exchange in Spain, Germany, Italy, Canada, France, Tokyo, Australia, Singapore, England or Hong Kong,
or in another country which requires companies publicly traded on such leading exchange to provide public information reasonably comparable to that required in the United States. 
  
 “Qualified Borrower” shall mean a Special Purpose Entity and otherwise approved by Lender in its sole
discretion. 
  
 “Qualified Manager” shall mean
either (a) Manager, or (b) a reputable and experienced management organization (which may be an Affiliate of Borrower) possessing experience in managing properties similar in size, scope, use and value as the Property, provided, that,
following a Securitization, or at such time as the Loan is scheduled to be included in a Securitization, Borrower shall have obtained prior written confirmation from the applicable Rating Agencies that management of the Property by such Person will
not cause a downgrade, withdrawal or qualification of the then current ratings of the Securities or any class thereof. 
  
 “Qualified Transferee” shall mean any one of the following Persons, subject to the reasonable determination of Lender that such Person
satisfies the applicable requirements set forth in this definition and which is not otherwise an Embargoed Person: 
  
 (a) a pension fund, pension trust or pension account that has total assets of at least $500 million that is managed by an entity that
controls or manages at least $1 billion of real estate equity assets; 
  
 (b) a pension fund advisor that controls or manages at least $1 billion of real estate equity assets immediately prior to any proposed transfer hereunder; 
  
 (c) an insurance company that is subject to supervision by the insurance commission, or a similar official
or agency, of a State or territory of the United States (including the District of Columbia), which has a net worth, as of a date no more than six (6) months prior to the date of the proposed transfer hereunder, of at least $500 million and controls
real estate equity assets of at least $1 billion immediately prior to any proposed transfer hereunder; 
  
 (d) a corporation organized under the banking or trust company laws of the United States or any State or territory of the United States
(including the District of Columbia) that has a combined capital and surplus of at least $500 million and that immediately prior to a proposed transfer hereunder controls real estate equity assets of at least $1 billion; or 
  
 (e) any equity (a)(i) with a long-term unsecured debt rating
from the Rating Agencies of at least BBB- (or its equivalent) or (b) (1) that owns or operates, together with its affiliates, at least ten (10) first class hotel properties, (2) that has a net worth as of a date no more 

  

 16 

 
than six (6) months prior to the date of any proposed transfer hereunder of at least $500 million and (3) that controls, together with its Affiliates, real
estate equity assets of at least $1 billion immediately prior to any proposed transfer hereunder. 
  
 “Quarterly Net Cash Flow Test” shall have the meaning set forth in Section 2.6.6. 
  
 “Rating Agencies” shall mean each of S&P, Moody’s
and Fitch, or any other nationally recognized statistical rating agency which rates the Securities. 
  
 “Release Default” shall mean (i) a monetary Default under any Loan Document or (ii) any other material Default under any Loan Document of
which Lender has given written notice thereof to Borrower whether or not the applicable grace or cure period, if any, has expired. 
  
 “REMIC Trust” shall mean a “real estate mortgage investment conduit” within the meaning of Section 860D of the Code that holds
the Note. 
  
 “Rents” shall mean all rents,
receipts, revenues, income (including service charges), fees, payments and proceeds of sales of every kind received by or on behalf of Borrower, directly or indirectly, from operating the Property for that period, and services rendered to, and
rentals, percentage rentals and other fees, payments and charges received from, tenants, subtenants, licensees, concessionaires and occupants of commercial, hotel, public and retail space located in or at the Property, calculated on a cash basis,
whether in cash or on credit, including, without limitation, revenues from the rental of rooms, guest suites, conference and banquet rooms, food and beverage facilities, telephone services, laundry, vending, television and parking at the Property,
and other fees and charges resulting from the operations of the Property by or on behalf of Borrower in the ordinary course of business, and proceeds, if any, from business interruption or other loss of income insurance (net of the costs of
collection thereof) and also including any proceeds received by Borrower in respect of the Interest Rate Cap Agreement, non-recurring income and non-Property related income (as determined by Lender in its reasonable discretion), security deposits
received from any tenant but only when the same are applied to rent or any other of such tenant’s obligations in accordance with the terms of such tenant’s Lease, any loan proceeds or proceeds of capital or equity contributions received by
Borrower, Insurance Proceeds and Condemnation Proceeds, proceeds from the sale of FF&E no longer required for the operation of the Property, and rents from month-to-month tenants or tenants that are included in any Bankruptcy Action. 

 
 “Replaced Borrower” shall have the meaning set forth in
Section 2.8 hereof. 
  
 “Replaced Loan”
shall have the meaning set forth in Section 2.8 hereof. 
  
 “Replacement Interest Rate Cap Agreement” means an interest rate cap agreement from an Acceptable Counterparty with a Strike Price identical to, and all other terms substantially similar to those set forth in, the Interest
Rate Cap Agreement except that the same shall be effective in connection with replacement of the Interest Rate Cap Agreement following a downgrade, withdrawal or qualification of the long-term unsecured debt rating of the Counterparty;
provided, that, to the extent any such interest rate cap agreement does not meet the foregoing requirements, a “Replacement Interest Rate Cap Agreement” shall be such interest rate cap agreement approved in writing by Lender
and for which Lender has received a confirmation 

  

 17 

 
from the applicable Rating Agencies that such Replacement Interest Rate Cap Agreement will not cause a downgrade, withdrawal or qualification of the then
current rating of the Securities or any class thereof. 
  
 “Replacement Management Agreement” shall mean, collectively: (a) either (i) a management agreement with a Qualified Manager substantially in the same form and substance as the Management Agreement, or (ii) a management
agreement with a Qualified Manager, which management agreement shall be reasonably acceptable to Lender in form and substance, provided, with respect to this subclause (ii), Lender, at its option, may require that Borrower obtain confirmation
from the applicable Rating Agencies that such management agreement will not cause a downgrade, withdrawal or qualification of the then current rating of the Securities or any class thereof; and (b) an assignment of management agreement and
subordination of management fees substantially in the form then used by Lender (or of such other form and substance reasonably acceptable to Lender), executed and delivered to Lender by Borrower and such Qualified Manager at Borrower’s expense.

  
 “Restoration” shall mean the repair and
restoration of the Property after a Casualty or Condemnation as nearly as possible to the condition the Property was in immediately prior to such Casualty or Condemnation, with such alterations as may be reasonably approved by Lender (it being
agreed that the commencement of the preparation of plans and specifications shall constitute commencement of the Restoration). 
  
 “Restricted Party” shall mean, collectively (a) Borrower, Principal, Guarantor and any Affiliated Manager and (b) any shareholder,
partner, member, non-member manager, direct or indirect legal or beneficial owner, agent and employee of, Borrower, Principal, Guarantor, any Affiliated Manager or any non-member manager. 
  
 “RICO” shall mean Racketeer Influenced and Corrupt Organizations Act. 
  
 “S&P” shall mean Standard & Poor’s Ratings
Group, a division of the McGraw-Hill Companies. 
  
 “Sale
or Pledge” shall mean a voluntary or involuntary sale, conveyance, assignment, transfer, encumbrance or pledge of a legal or beneficial interest. 
  
 “Second Extension Commencement Date” shall have the meaning set forth in Section 2.7.2. 
  
 “Second Extension Term” shall have the meaning set forth in
Section 2.7.2. 
  
 “Second Mortgage” shall
mean that certain Second Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated the date hereof, executed and delivered by Borrower to Lender as additional security for, among other things, (x) the Borrower’s
obligations under the Borrower Guaranty and (y) the Other Borrower Obligations, and encumbering the Property, as same may be amended, restated, replaced, supplemented or otherwise modified from time to time, which Second Mortgage shall be subject
and subordinate to the Liens of the Mortgage and the Assignment of Leases. 
  

 18 

 “Securities” shall have the meaning set forth in Section 9.1 hereof. 

 
 “Securities Act” shall have the meaning set forth in
Section 9.2(a) hereof. 
  
 “Securitization” shall have the meaning set forth in Section 9.1 hereof. 
  
 “Servicer” shall have the meaning set forth in Section 9.6 hereof. 
  
 “Servicing Agreement” shall have the meaning set forth in Section 9.6 hereof. 
  
 “Severed Loan Documents” shall have the meaning set forth in
Section 8.2(b) hereof. 
  
 “Significant
Party” shall mean each of Borrower, Guarantor and Principal. 
  
 “Special Purpose Entity” shall mean a corporation, limited partnership or limited liability company which at all times prior to, on and after the date hereof: 
  
 (a) was, is and will be organized solely for the purpose of (i) acquiring, developing, owning, holding,
selling, leasing, transferring, exchanging, managing and/or operating the Property, entering into this Agreement and the other Loan Documents with Lender, refinancing the Property in connection with a permitted repayment of the Loan, and transacting
lawful business that is incident, necessary and appropriate to accomplish the foregoing; or (ii) acting as managing member of the limited liability company or general partner of the limited partnership that owns and operates the Property;

  
 (b) has not been, is not, and will not be
engaged in any business unrelated to (i) the acquisition, development, ownership, management and/or operation of the Property, or (ii) acting as a member of the limited liability company that owns and operates the Property; 
  
 (c) has not had, does not have, and will not have, any
assets other than those related to the Property, its membership interest in the limited liability company that owns and operates the Property, or acts as the managing member of either of the foregoing, as applicable; 
  
 (d) has not engaged in, sought or consented to and will not
engage in, seek or consent to, any dissolution, winding up, liquidation, consolidation, merger, sale of all or substantially all of its assets, transfer of membership interests or amendment of its articles of incorporation, articles of organization
or operating agreement (as applicable) with respect to the matters set forth in this definition; 
  
 (e) if such entity is a corporation, has had, now has and will have at least two (2) Independent Directors, and has not caused or allowed,
and will not cause or allow, the board of directors of such entity to take any action requiring the unanimous affirmative vote of one hundred percent (100%) of the members of its board of directors unless two (2) Independent Directors shall have
participated in such vote; 
  
 (f) if such entity
is a limited liability company with more than one member, has had, now has and will have at least one member that is a Special Purpose Entity that is a 

  

 19 

 
corporation that has at least two (2) Independent Directors and that owns at least one percent (1.0%) of the equity of the limited liability company;

  
 (g) if such entity is a limited liability
company with only one member, has been, now is, and will be a limited liability company that has (i) as its only member a non-managing member, (ii) at least two (2) Independent Managers and has not caused or allowed, and will not cause or allow, the
board of managers of such entity to take any action requiring the unanimous affirmative vote of one hundred percent (100%) of the managers unless two (2) Independent Managers shall have participated in such vote, and (iii) at least one (1) springing
member that will become the non-managing member of such entity upon the dissolution of the existing non-managing member; 
  
 (h) if such entity is (i) a limited liability company, has had, now has, and will have articles of organization and/or an operating
agreement, as applicable, or (ii) a corporation, has had, now has, and will have a certificate of incorporation that, in each of the foregoing cases, provides that such entity will not: (A) dissolve, merge, liquidate or consolidate; (B) sell all or
substantially all of its assets or the assets of Borrower (as applicable); (C) engage in any other business activity or amend its organizational documents with respect to the matters set forth in this definition without the consent of Lender; or (D)
without the affirmative vote of two (2) Independent Directors and of all other directors of the corporation (that is such entity or the managing or co-managing member of such entity), file a bankruptcy or insolvency petition or otherwise institute
insolvency proceedings with respect to itself or to any other entity in which it has a direct or indirect legal or beneficial ownership interest; 
  
 (i) has been, is and intends to remain solvent and has paid and intends to continue to pay its debts and liabilities (including, as
applicable, shared personnel and overhead expenses) from its assets as the same have or shall become due, and has maintained, is maintaining and intends to maintain adequate capital for the normal obligations reasonably foreseeable in a business of
its size and character and in light of its contemplated business operations; 
  
 (j) has not failed, and will not fail, to correct any known misunderstanding regarding the separate identity of such entity; 
  
 (k) has maintained and will maintain its accounts, books and records separate from any other Person and has filed and will file its own
tax returns, except to the extent that it has been or is required to file consolidated tax returns by law; 
  
 (l) has maintained and will maintain its own records, books, resolutions and agreements; 
  
 (m) other than as provided in this Agreement and the Cash
Management Agreement, (i) has not commingled, and will not commingle, its funds or assets with those of any other Person and (ii) has not participated and will not participate in any cash management system with any other Person; 
  
 (n) has held and will hold its assets in its own name;

  

 20 

 (o) has conducted and will conduct its business in its name or in a name franchised or
licensed to it by an entity other than an Affiliate of Borrower, except for services rendered under a business management services agreement with an Affiliate that complies with the terms contained in subsection (cc) below, so long as the manager,
or equivalent thereof, under such business management services agreement holds itself out as an agent of Borrower; 
  
 (p) has maintained and will maintain its financial statements, accounting records and other entity documents separate from any other
Person and has not permitted, and will not permit, its assets to be listed as assets on the financial statement of any other entity except as required by GAAP; provided, however, that any such consolidated financial statement shall
contain a note indicating that its separate assets and liabilities are neither available to pay the debts of the consolidated entity nor constitute obligations of the consolidated entity; 
  
 (q) has paid and will pay its own liabilities and expenses,
including the salaries of its own employees, out of its own funds and assets, and has maintained and will maintain a sufficient number of employees in light of its contemplated business operations; 
  
 (r) has observed and will observe all partnership, corporate
or limited liability company formalities, as applicable; 
  
 (s) has had no and will have no Indebtedness other than (i) the Loan, (ii) unsecured trade and operational debt incurred in the ordinary course of business relating to the ownership and operation of the Property and
the routine administration of Borrower, in amounts not to exceed three percent (3%) of the original principal amount of the Loan, in the aggregate, which liabilities are not more than sixty (60) days past the date incurred, are not evidenced by a
note and are paid when due, and which amounts are normal and reasonable under the circumstances, (iii) Financing Leases except as permitted pursuant to this Agreement, and (iv) such other liabilities (including the Borrower Guaranty) that are
permitted or required pursuant to this Agreement; 
  
 (t) has not assumed or guaranteed or become obligated for, and will not assume or guarantee or become obligated for the debts of any other Person and has not held out and will not hold out its credit as being
available to satisfy the obligations of any other Person except as permitted pursuant to this Agreement other than the Borrower Guaranty; 
  
 (u) has not acquired and will not acquire obligations or securities of its partners, members or shareholders or any other Affiliate;

  
 (v) has allocated and will allocate, fairly
and reasonably, any overhead expenses that are shared with any Affiliate, including, but not limited to, paying for shared office space and services performed by any employee of an Affiliate; 
  
 (w) has maintained and used, now maintains and uses, and
will maintain and use, separate stationery, invoices and checks bearing its name. The stationery, invoices, and checks utilized by the Special Purpose Entity or utilized to collect its funds or pay its expenses have borne and shall bear its own name
and have not borne and shall not bear the name of any other entity unless such entity is clearly designated as being the Special Purpose Entity’s agent; 
  

 21 

 (x) has not pledged and will not pledge its assets for the benefit of any other Person
other than in connection with the Other Loans; 
  
 (y) has held itself out and identified itself, and will hold itself out and identify itself, as a separate and distinct entity under its own name or in a name franchised or licensed to it by an entity other than an Affiliate of Borrower and
not as a division or part of any other Person, except for services rendered under a business management services agreement with an Affiliate that complies with the terms contained in subsection (cc) below, so long as the manager, or equivalent
thereof, under such business management services agreement holds itself out as an agent of Borrower; 
  
 (z) has maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or
identify its individual assets from those of any other Person; 
  
 (aa) has not made and will not make loans to any Person or hold evidence of indebtedness issued by any other Person or entity (other than cash and investment-grade securities issued by an entity that is not an
Affiliate of or subject to common ownership with such entity); 
  
 (bb) has not identified and will not identify its partners, members or shareholders, or any Affiliate of any of them, as a division or part of it, and has not identified itself, and shall not identify itself, as a
division of any other Person; 
  
 (cc) has not
entered into or been a party to, and will not enter into or be a party to, any transaction with its partners, members, shareholders or Affiliates except (i) in the ordinary course of its business and on terms which are intrinsically fair,
commercially reasonable and are no less favorable to it than would be obtained in a comparable arm’s-length transaction with an unrelated third party, and (ii) in connection with this Agreement; 
  
 (dd) has not had and will not have any obligation to
indemnify, and has not indemnified and will not indemnify its partners, officers, directors or members, as the case may be, unless such an obligation was and is fully subordinated to the Obligations and will not constitute a claim against the
Obligations in the event that cash flow in excess of the amount required to pay the Obligations is insufficient to pay such obligation; 
  
 (ee) if such entity is a corporation, it has considered and shall consider the interests of its creditors in connection with all corporate
actions; 
  
 (ff) does not and will not have any
of its obligations guaranteed by any Affiliate other than in connection with the Other Loans; and 
  
 (gg) has complied and will comply with all of the terms and provisions contained in its organizational documents. The statement of facts
contained in its organizational documents are true and correct and will remain true and correct. 
  
 “Spread” shall mean one and 20/100 percent (1.20%). 
  

 22 

 “Standard Statements” shall have the meaning set forth in Section 5.1.11(d)(i)
hereof. 
  
 “State” shall mean the State or
Commonwealth in which the Property or any part thereof is located. 
  
 “Strike Price” shall mean seven percent (7%). 
  
 “Substitute Borrower” shall have the meaning set forth in Section 2.8. 
  
 “Substitute Loan Documents” shall have the meaning set forth in Section 2.8. 
  
 “Substitute Property” shall have the meaning set forth in
Section 2.8. 
  
 “Substitution” shall have
the meaning set forth in Section 2.8. 
  
 “Substitution Date” shall have the meaning set forth in Section 2.8. 
  
 “Substitution Loan” shall have the meaning set forth in Section 2.8. 
  
 “Survey” shall mean a survey of the Property prepared pursuant to the requirements contained in Section
4.1.27 hereof. 
  
 “Sweep Event” shall mean
the period following the occurrence of (a) an Event of Default, or (b) a default beyond the expiration of applicable notice and cure periods under the Management Agreement, or (c) a Net Cash Flow Failure and ending on a “Sweep Event
Termination.” A Sweep Event shall be terminated (a “Sweep Event Termination”) (i) with respect to an Event of Default (but not more than one (1) time during the term of the Loan, as the same may be extended) provided such Event
of Default has been cured and such cure is accepted by Lender, provided that Lender has not otherwise accelerated the Loan, moved for a receiver or commenced foreclosure proceedings, and/or (ii) with respect to a default by Manager under the
Management Agreement, the replacement of the Manager with a Qualified Manager pursuant to a Replacement Management Agreement, and/or (iii) with respect to a Net Cash Flow Failure (but not more than once every twelve (12) months) if, for the trailing
twelve (12) month period preceding the date of determination, the Aggregate Net Cash Flow is equal to or greater than eighty percent (80%) of the Aggregate Net Cash Flow as of the Closing Date for two (2) consecutive calendar quarters. 

 
 “Tax and Insurance Escrow Funds” shall have the meaning
set forth in Section 7.2 hereof. 
  
 “Taxes” shall mean all real estate and personal property taxes, assessments, water rates or sewer rents, now or hereafter levied or assessed or imposed against the Property or part thereof, together with all interest and
penalties thereon. 
  
 “Third Extension Commencement
Date” shall have the meaning set forth in Section 2.7.3. 
  
 “Third Extension Term” shall have the meaning set forth in Section 2.7.3. 
  

 23 

 “Threshold Amount” shall have the meaning set forth in Section 5.1.21 hereof.

  
 “Title Company” shall mean, collectively,
Fidelity National Title Insurance Company and National Land Tenure, or any successor title company acceptable to Lender and licensed to issue title insurance in the State in which the Property is located. 
  
 “Title Insurance Policies” shall mean collectively, (a) an
ALTA mortgagee title insurance policy in a form acceptable to Lender (or, if the Property is in a State which does not permit the issuance of such ALTA policy, such form as shall be permitted in such State and acceptable to Lender) issued with
respect to the Property and insuring the lien of the Mortgage encumbering the Property, and (b) an ALTA mortgagee title insurance policy in a form acceptable to Lender (or, if the Property is in a State which does not permit the issuance of such
ALTA policy, such form as shall be permitted in such State and acceptable to Lender) issued with respect to the Property and insuring the lien of the Second Mortgage encumbering the Property. 
  
 “Transfer” shall have the meaning set forth in Section
5.2.10(b) hereof. 
  
 “Transferee” shall have
the meaning set forth in Section 5.2.10(e) hereof. 
  
 “UCC” or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in the State in which the Property is located. 
  
 “Unavoidable Delays” means delays due to strikes, lockouts, acts of God, unusually severe weather,
inability to obtain labor or materials (except as may be due to Borrower’s or any of Borrower’s contractors’ or subcontractors’ economic inability to acquire same), government restrictions, enemy action, civil commotion, fire,
casualties or similar causes beyond Borrower’s reasonable control. 
  
 “U.S. Obligations” shall mean non-redeemable securities evidencing an obligation to timely pay principal and/or interest in a full and timely manner that are direct obligations of the United States of America for the
payment of which its full faith and credit is pledged. 
  
 “Wyndham” shall have the meaning set forth in Section 5.2.10(c). 
  
 Section 1.2 Principles of Construction. All references to sections and schedules are to sections and schedules in or to this Agreement unless
otherwise specified. All uses of the word “including” shall mean “including, without limitation” unless the context shall indicate otherwise. Unless otherwise specified, the words “hereof,” “herein” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement and the word “including” shall mean “including but not
limited to”. Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms of the terms so defined. 
  

 24 

 ARTICLE 2 
  

GENERAL TERMS 
  
 Section 2.1 Loan Commitment; Disbursement to Borrower. 
  
 2.1.1 Agreement to Lend and Borrow. Subject to and upon the terms and conditions set forth herein, Lender hereby agrees to make and
Borrower hereby agrees to borrow the Loan on the Closing Date. 
  
 2.1.2 Single Disbursement to Borrower. Borrower may request and receive only one disbursement hereunder in respect of the Loan and any amount borrowed and repaid hereunder in respect of the Loan may not be
reborrowed. 
  
 2.1.3 The Note, Mortgage and
Loan Documents. The Loan shall be evidenced by the Note and secured by the Mortgage, the Assignment of Leases and the other Loan Documents. 
  
 2.1.4 Use of Proceeds. Borrower shall use the proceeds of the Loan to (a) refinance the Property and/or repay and discharge any
existing loans relating to the Property, (b) pay all past-due Basic Carrying Costs, if any, with respect to the Property, (c) make initial deposits into the Reserve Funds on the Closing Date in the amounts provided herein and in the other Loan
Documents, (d) pay costs and expenses incurred in connection with the closing of the Loan, as approved by Lender, (d) fund any working capital requirements of the Property, and (e) distribute the balance, if any, to Borrower. 
  
 Section 2.2 Interest Rate. 
  
 2.2.1 Interest Generally. Interest on the Outstanding
Principal Balance shall accrue from the Closing Date to but excluding the Maturity Date at the Applicable Interest Rate. 
  
 2.2.2 Interest Calculation. Interest on the Outstanding Principal Balance shall be calculated by multiplying (a) the actual number
of days elapsed in the period for which the calculation is being made by (b) a daily rate based on a three hundred sixty (360) day year by (c) the Outstanding Principal Balance. 
  
 2.2.3 Determination of Interest Rate. 
  
 (a) The Applicable Interest Rate with respect to the Loan shall be: (i) LIBOR plus the Spread with respect
to the applicable Interest Period for a LIBOR Loan; or (ii) the Prime Rate plus the Prime Rate Spread for a Prime Rate Loan if the Loan is converted to a Prime Rate Loan pursuant to the provisions of Section 2.2.3 (c) or (f).

  
 (b) Subject to the terms and conditions of
this Section 2.2.3, the Loan shall be a LIBOR Loan and Borrower shall pay interest on the Outstanding Principal Balance at LIBOR plus the Spread for the applicable Interest Period. Any change in the rate of interest hereunder due to a change
in the Applicable Interest Rate shall become effective as of the opening of business on the first day on which such change in the Applicable Interest Rate shall become 

  

 25 

 
effective. Each determination by Lender of the Applicable Interest Rate shall be conclusive and binding for all purposes, absent manifest error. 

 
 (c) In the event that Lender shall have determined (which
determination shall be conclusive and binding upon Borrower absent manifest error) that by reason of circumstances affecting the interbank Eurodollar market, adequate and reasonable means do not exist for ascertaining LIBOR, then Lender shall
forthwith give notice by telephone of such determination, confirmed in writing, to Borrower at least one (1) day prior to the last day of the related Interest Period. If such notice is given, the related outstanding LIBOR Loan shall be converted, on
the last day of the then current Interest Period, to a Prime Rate Loan. 
  
 (d) If, pursuant to the terms of this Agreement, any portion of the Loan has been converted to a Prime Rate Loan and Lender shall determine (which determination shall be conclusive and binding upon Borrower absent
manifest error) that the event(s) or circumstance(s) which resulted in such conversion shall no longer be applicable, Lender shall give notice by telephone of such determination, confirmed in writing, to Borrower at least one (1) day prior to the
last day of the related Interest Period. If such notice is given, the related outstanding Prime Rate Loan shall be converted to a LIBOR Loan on the last day of the then current Interest Period. 
  
 (e) With respect to a LIBOR Loan, all payments made by
Borrower hereunder shall be made free and clear of, and without reduction for or on account of, income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions, reserves or withholdings imposed, levied, collected, withheld or
assessed by any Governmental Authority, which are imposed, enacted or become effective after the date hereof (such non-excluded taxes being referred to collectively as “Foreign Taxes”), excluding income and franchise taxes of the
United States of America or any political subdivision or taxing authority thereof or therein (including Puerto Rico). If any Foreign Taxes are required to be withheld from any amounts payable to Lender hereunder, the amounts so payable to Lender
shall be increased to the extent necessary to yield to Lender (after payment of all Foreign Taxes) interest or any such other amounts payable hereunder at the rate or in the amounts specified hereunder. Whenever any Foreign Tax is payable pursuant
to applicable law by Borrower, as promptly as possible thereafter, Borrower shall send to Lender an original official receipt, if available, or certified copy thereof showing payment of such Foreign Tax. Borrower hereby indemnifies Lender for any
incremental taxes, interest or penalties that may become payable by Lender which may result from any failure by Borrower to pay any such Foreign Tax when due to the appropriate taxing authority or any failure by Borrower to remit to Lender the
required receipts or other required documentary evidence. 
  
 (f) If any requirement of law or any change therein or in the interpretation or application thereof, shall hereafter make it unlawful for Lender to make or maintain a LIBOR Loan as contemplated hereunder (i) the
obligation of Lender hereunder to make a LIBOR Loan or to convert a Prime Rate Loan to a LIBOR Loan shall be canceled forthwith, and (ii) any outstanding LIBOR Loan shall be converted automatically to a Prime Rate Loan on the next succeeding Payment
Date or within such earlier period as required by law. Borrower hereby agrees promptly to pay Lender, upon demand, any additional amounts necessary to compensate Lender for any costs incurred by Lender in making any conversion in accordance with
this Agreement, including, without limitation, any interest or fees payable by Lender to lenders of 

  

 26 

 
funds obtained by it in order to make or maintain the LIBOR Loan hereunder. Lender’s notice of such costs, as certified to Borrower, shall be conclusive
absent manifest error. 
  
 (g) In the event that
any change in any requirement of law or in the interpretation or application thereof, or compliance by Lender with any request or directive (whether or not having the force of law) hereafter issued from any central bank or other Governmental
Authority: 
  

	 	(i)	shall hereafter impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, or deposits or other liabilities in or
for the account of, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of Lender which is not otherwise included in the determination of LIBOR hereunder; 

  

	 	(ii)	shall hereafter have the effect of reducing the rate of return on Lender’s capital as a consequence of its obligations hereunder to a level below that which Lender could have
achieved but for such adoption, change or compliance (taking into consideration Lender’s policies with respect to capital adequacy) by any amount deemed by Lender to be material; or 

  

	 	(iii)	shall hereafter impose on Lender any other condition and the result of any of the foregoing is to increase the cost to Lender of making, renewing or maintaining loans or extensions
of credit or to reduce any amount receivable hereunder; 

  
 then, in
any such case, Borrower shall promptly pay Lender, upon demand, any additional amounts necessary to compensate Lender for such additional cost or reduced amount receivable which Lender deems to be material as determined by Lender. If Lender becomes
entitled to claim any additional amounts pursuant to this Section 2.2.3(g), Lender shall provide Borrower with not less than ninety (90) days notice specifying in reasonable detail the event by reason of which it has become so entitled and
the additional amount required to fully compensate Lender for such additional cost or reduced amount. A certificate as to any additional costs or amounts payable pursuant to the foregoing sentence submitted by Lender to Borrower shall be conclusive
in the absence of manifest error. This provision shall survive payment of the Note and the satisfaction of all other obligations of Borrower under this Agreement and the Loan Documents. 
  
 (h) Borrower agrees to indemnify Lender and to hold Lender harmless from any loss or expense which Lender
sustains or incurs as a consequence of (i) any default by Borrower resulting in a loss or expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain a LIBOR Loan hereunder, (ii) any prepayment
(whether voluntary or mandatory) of the LIBOR Loan on a day that is not a Payment Date unless Borrower did not give the prior notice of such prepayment required pursuant to the terms of this Agreement, including, without limitation, such loss or
expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain the LIBOR Loan hereunder, and (iii) the conversion (if such conversion is caused by any act or omission of 

  

 27 

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

  

 28 

 
use, forbearance, or detention of the sums due under the Loan, shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and
spread throughout the full stated term of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed the Maximum Legal Rate of interest from time to time in effect and applicable to the Loan for so
long as the Loan is outstanding. 
  
 2.2.7
Interest Rate Cap Agreement. 
  
 (a) On or
before the earlier to occur of (y) September 1, 2004 or (z) the date which is two (2) weeks prior to the printing of the preliminary prospectus in connection with a Securitization (which date shall be provided to Borrower at least five (5) Business
Days in advance thereof), Borrower shall enter into an Interest Rate Cap Agreement with a LIBOR strike price equal to the Strike Price. The Interest Rate Cap Agreement (i) shall be in a form and substance reasonably acceptable to Lender, (ii) shall
be with an Acceptable Counterparty, (iii) shall direct such Acceptable Counterparty to deposit directly into the Property Account any amounts due Borrower under such Interest Rate Cap Agreement so long as any portion of the Debt exists,
provided, that, the Debt shall be deemed to exist if the Property is transferred by judicial or non-judicial foreclosure or deed-in-lieu thereof, (iv) shall be for a period equal to the term of the Loan, and (v) shall have an initial
notional amount equal to the principal balance of the Loan. Borrower shall collaterally assign to Lender, pursuant to the Collateral Assignment of Interest Rate Cap Agreement, all of its right, title and interest to receive any and all payments
under the Interest Rate Cap Agreement, and shall deliver to Lender an executed counterpart of such Interest Rate Cap Agreement (which shall, by its terms, authorize the assignment to Lender and require that payments be deposited directly into the
Property Account). 
  
 (b) Borrower shall comply
with all of its obligations under the terms and provisions of the Interest Rate Cap Agreement. All amounts paid by the Counterparty under the Interest Rate Cap Agreement to Borrower or Lender shall be deposited immediately into the Property Account.
Borrower shall take all actions reasonably requested by Lender to enforce Lender’s rights under the Interest Rate Cap Agreement in the event of a default by the Counterparty and shall not waive, amend or otherwise modify any of its rights
thereunder. 
  
 (c) In the event of any downgrade
below “A+” (or its equivalent), withdrawal or qualification of the rating of the Counterparty by S&P or Moody’s, Borrower shall replace the Interest Rate Cap Agreement with a Replacement Interest Rate Cap Agreement not later than
ten (10) Business Days following receipt of notice from Lender of such downgrade, withdrawal or qualification. 
  
 (d) In the event that Borrower fails to purchase and deliver to Lender the Interest Rate Cap Agreement or fails to maintain the Interest
Rate Cap Agreement in accordance with the terms and provisions of this Agreement, Lender may purchase the Interest Rate Cap Agreement and the cost incurred by Lender in purchasing such Interest Rate Cap Agreement shall be paid by Borrower to Lender
with interest thereon at the Default Rate from the date such cost was incurred by Lender until such cost is reimbursed by Borrower to Lender. 
  
 (e) In connection with the Interest Rate Cap Agreement, Borrower shall obtain and deliver to Lender an opinion from counsel (which counsel
may be in-house counsel 

  

 29 

 
for the Counterparty) for the Counterparty (upon which Lender and its successors and assigns may rely) which shall provide, in relevant part, that:

  

	 	(i)	the Counterparty is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation and has the organizational power and authority to
execute and deliver, and to perform its obligations under, the Interest Rate Cap Agreement; 

  

	 	(ii)	the execution and delivery of the Interest Rate Cap Agreement by the Counterparty, and any other agreement which the Counterparty has executed and delivered pursuant thereto, and
the performance of its obligations thereunder have been and remain duly authorized by all necessary action and do not contravene any provision of its certificate of incorporation or by-laws (or equivalent organizational documents) or any law,
regulation or contractual restriction binding on or affecting it or its property; 

  

	 	(iii)	all consents, authorizations and approvals required for the execution and delivery by the Counterparty of the Interest Rate Cap Agreement, and any other agreement which the
Counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been obtained and remain in full force and effect, all conditions thereof have been duly complied with, and no other action by, and no
notice to or filing with any Governmental Authority or regulatory body is required for such execution, delivery or performance; and 

  

	 	(iv)	the Interest Rate Cap Agreement, and any other agreement which the Counterparty has executed and delivered pursuant thereto, has been duly executed and delivered by the Counterparty
and constitutes the legal, valid and binding obligation of the Counterparty, enforceable against the Counterparty in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally,
and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 

  
 Section 2.3 Loan Payment. 
  

2.3.1 Payments Generally. Borrower shall pay to Lender on each Payment Date the interest accrued on the Loan for the preceding
Interest Period (the “Monthly Interest Payment”). The first interest accrual period hereunder shall commence on and include the Closing Date and end on July 8, 2004. Each interest accrual period thereafter shall commence on the
ninth (9th) day of each calendar month during the term of the Loan and shall end on and include the eighth (8th) day of the next occurring calendar month. For purposes of making payments hereunder, but not for purposes of calculating interest
accrual periods, if the day on which such payment is due is not a Business Day, then amounts due on such date shall be due on 

  

 30 

 
the immediately preceding Business Day. With respect to payments of principal due on the Maturity Date, interest shall be payable at the Applicable Interest
Rate or the Default Rate, as the case may be, through and including the day immediately preceding such Maturity Date. All amounts due pursuant to this Agreement and the other Loan Documents shall be payable without setoff, counterclaim, defense or
any other deduction whatsoever. 
  
 2.3.2
Payment on Maturity Date. Borrower shall pay to Lender on the Maturity Date the Outstanding Principal Balance, all accrued and unpaid interest and all other amounts due hereunder and under the Note, the Mortgage and the other Loan Documents.

  
 2.3.3 Late Payment Charge. If any
principal, interest or any other sums due under the Loan Documents, excluding the payment of principal due on the Maturity Date, is not paid by Borrower by the date on which it is due, Borrower shall pay to Lender upon demand an amount equal to the
lesser of (a) two percent (2%) of such unpaid sum, and (b) the maximum amount permitted by applicable law in order to defray the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of
the use of such delinquent payment; provided, however, that with respect to two (2) delinquent payments during the term of the Loan, as the same may be extended, no such late charge shall be payable provided such payment is made within five (5) days
after the due date therefor and interest on such delinquent payments shall accrue at the Applicable Interest Rate calculated from the date such payment was due. Any such amount shall be secured by the Mortgage and the other Loan Documents to the
extent permitted by applicable law. 
  
 2.3.4
Method and Place of Payment. Except as otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender not later than 1:00 P.M., New York City time, on the date when due and shall
be made in lawful money of the United States of America in immediately available funds at Lender’s office or as otherwise directed by Lender, and any funds received by Lender after such time shall, for all purposes hereof, be deemed to have
been paid on the next succeeding Business Day. Any prepayments required to be made hereunder or under the Cash Management Agreement shall be deemed to have been timely made for the purposes of this Section 2.3.4. 
  
 Section 2.4 Prepayments. 
  
 2.4.1 Voluntary Prepayments. (a) The Loan may be
prepaid in whole only (but not in part) on any Payment Date, provided, that, with respect to any such prepayment (i) the Borrower shall give Lender thirty (30) days’ prior written notice of the Borrower’s intention to prepay
the Loan in full, (ii) subject to the terms of Section 2.4.1(b) below, all outstanding Other Loans together with all Other Borrower Obligations shall simultaneously be repaid in full subject to and in accordance with the applicable Other
Borrower Loan Documents and (iii) Borrower pays Lender, in addition to the Outstanding Principal Balance, (A) all interest as required herein; and (B) all other Debt payable under this Agreement, the Note, and the other Loan Documents, including,
but not limited to the Breakage Costs and all of Lender’s costs and expenses (including reasonable attorneys’ fees and disbursements) incurred by Lender in connection with such prepayment. Borrower shall have the right to withdraw any
prepayment notice at any time prior to such prepayment provided that Borrower shall pay to Lender all of Lender’s reasonable costs and expenses incurred in connection with the receipt of such notices. 
  

 31 

 (b) Notwithstanding the terms of clause (ii) of Section 2.4.1(a) above, the
Loan may be prepaid in whole only (but not in part) if the Property is sold in a bona fide arms-length, all-cash sale to a Person which is not a Related Party, provided, that: 
  

	 	(i)	the Borrower complies with the terms of Section 2.4.1(a) above (excluding clause (ii) thereof) in respect of such prepayment; 

  

	 	(ii)	the amount of such prepayment shall equal the Adjusted Release Amount; 

  

	 	(iii)	no Release Default or Event of Default shall have occurred and be continuing hereunder or under any other Loan Document; 

  

	 	(iv)	after giving effect to such release (including the amount prepaid in Section 2.4.1(a) above), the Aggregate Debt Service Coverage Ratio of the remaining Other Properties
shall equal or exceed than the greater of (i) the Aggregate Debt Service Coverage Ratio for the twelve (12) full calendar months immediately preceding the Closing Date, or (ii) the Aggregate Debt Service Coverage Ratio for the twelve (12) full
calendar months immediately preceding the release of the Property for which financial statements are available; 

  

	 	(v)	In the event Borrower is the owner of an Other Property, the Property shall be conveyed to a Person other than Borrower; 

  

	 	(vi)	The Adjusted Release Amount paid to Lender in connection with any such release shall be applied (i) first, to reduce the Debt to zero, and (ii) second, pro rata to the Other Loans,
immediately following such release. In connection with the release of the Mortgage and Second Mortgage as permitted by this Section 2.5, Borrower shall submit to Lender, not less than ten (10) days prior to the date on which Borrower intends to pay
the Loan in full, a release of Lien (and related Loan Documents), for the Property for execution by Lender. Such release shall be in a form appropriate in the jurisdiction in which the Property is located and that would be satisfactory to a prudent
lender; and 

  

	 	(vii)	Borrower shall have delivered to Lender an Officer’s Certificate in form reasonably acceptable to Lender certifying that no Release Default or Event of Default has occurred and
is continuing hereunder, under the Other Loan Documents or under the Other Borrower Loan Documents. 

  
 In the event any sums payable pursuant to Section 2.4 of the Other Loan Agreements are applied to reduce the Outstanding Principal Balance of this
Loan, no Prepayment Premium shall be payable in connection therewith. 
  

 32 

 2.4.2 Mandatory Prepayments. On the next occurring Payment Date following the date
on which Lender actually receives any Net Proceeds, if Lender is not obligated to make such Net Proceeds available to Borrower for Restoration, Borrower shall prepay, or authorize Lender to apply Net Proceeds as a prepayment of, the Outstanding
Principal Balance in an amount equal to one hundred percent (100%) of such Net Proceeds. So long as no Event of Default has occurred and is continuing, no Prepayment Premium shall be due in connection with any prepayment made pursuant to this
Section 2.4.2 (such fee being expressly waived). 
  
 2.4.3 Prepayments After Default. If after the occurrence and during the continuance of an Event of Default, payment of all or any part of the Debt is tendered by Borrower or otherwise recovered by Lender
(including through application of any Reserve Funds), such tender or recovery shall be deemed (a) to have been made on the next occurring Payment Date together with the Monthly Interest Payment, and (b) to be a voluntary prepayment by Borrower and
Borrower shall pay, in addition to the Debt, an amount equal to the greater of (i) five percent (5%) of the Outstanding Principal Balance or the portion thereof being prepaid or satisfied, and (ii) the Prepayment Premium, if any. 

 
 Section 2.5 Release of Property. (a) Except as set forth in this
Section 2.5, no repayment or prepayment of all or any portion of the Loan shall cause, give rise to a right to require, or otherwise result in, the release of the Liens of the Mortgage or the Second Mortgage. 
  
 (b) Lender shall promptly, upon the written request and at the sole cost and
expense of Borrower, upon payment in full of all of the Debt in accordance with the terms and provisions of the Note, this Agreement and the other Loan Documents and subject to and upon compliance with the terms of Section 2.4.1(b) hereof,
release the Lien of the Mortgage and the Second Mortgage on the Property. 
  
 (c) In connection with the release of the Mortgage and the Second Mortgage as permitted by this Section 2.5, Borrower shall submit to Lender, not less than ten (10) days prior to the Payment Date on which
Borrower intends to pay the Loan in full, releases of Lien (and related Loan Documents), for the Property for execution by Lender. Such releases shall be in a form appropriate in the jurisdiction in which the Property is located and that would be
satisfactory to a prudent lender. 
  
 Section 2.6 Cash
Management. 
  
 2.6.1 Property
Account. 
  
 (a) Borrower shall establish and
maintain a segregated Eligible Account (the “Property Account”) with the Property Account Bank maintained under Borrower’s control and direction during any period other than while a Sweep Event continues. Borrower (i) hereby
grants to Lender a first priority security interest in the Property Account and all deposits at any time contained therein and the proceeds thereof, and (ii) following and during any Sweep Event will take all actions necessary to maintain in favor
of Lender a perfected first priority security interest in the Property Account, including, without limitation, authorizing the filing of UCC-1 Financing Statements and continuations thereof. Borrower will not in any way alter or modify the Property
Account and will notify Lender of the account number thereof. Other than during a 

  

 33 

 
Sweep Event, Borrower shall have the sole right to make withdrawals from the Property Account and all reasonable costs and expenses for establishing and
maintaining the Property Account shall be paid by Borrower. Upon the occurrence and continuation of a Sweep Event, Lender shall have sole dominion and control over the Property Account and Borrower may not withdraw funds from the Property Account.

  
 (b) Borrower shall, or shall cause Manager
to, deposit all amounts received by Borrower or Manager constituting Rents into the Property Account within one (1) Business Day after receipt thereof, provided, however, Borrower may retain, for its business operations at all times a sum not to
exceed Twenty-Five Thousand and 00/100 ($25,000.00) in the aggregate in the Operating Account (as defined in the Cash Management Agreement) and at the Property. In addition, on or before the Closing Date, Borrower shall, or shall cause Manager to,
deliver irrevocable written instructions (each a “Payment Direction Letter”) to each of the credit card companies or credit card clearing banks with which Borrower or Manager has entered into merchant’s agreements and to each
account debtor of Borrower to deliver all Rents payable with respect to the Property directly to the Property Account. 
  
 (c) During any Sweep Event, the Property Account shall be maintained under Lender’s sole control, dominion and direction. Pursuant to
the terms of the Property Account Agreement, Property Account Bank shall transfer to the Cash Management Account, in immediately available funds by federal wire all amounts on deposit in the Property Account each Business Day during a period that a
Sweep Event exists. 
  
 (d) Upon request of
Lender, Borrower shall deliver to Lender such evidence as Lender may reasonably request to evidence that Borrower is complying with the provisions of Section 2.6.1. Without the prior written consent of Lender (not to be unreasonably withheld
or delayed), neither Borrower nor its agents (including, without limitation, Manager) or Affiliates shall (i) terminate, amend, revoke or modify any Payment Direction Letter in any manner or (ii) direct or cause any credit card company, credit card
clearing bank or account debtor to pay any amount in any manner other than as provided specifically in the related Payment Direction Letter. 
  
 (e) There are no accounts, other than the Property Account, maintained by Borrower or Manager or any other Person into which Rents from
the Property are initially deposited. So long as the Debt shall be outstanding, Borrower shall not and shall not permit any Person (other than Lender) to open any other such account for the initial deposit of Rents from the Property prior to the
deposit of such Rents in the Property Account. 
  
 (f) Borrower shall cause all payments made under the Interest Rate Cap Agreement or any Replacement Interest Rate Cap Agreement with respect to the Loan to be deposited into the Property Account. 
  
 2.6.2 Intentionally Omitted. 
  
 2.6.3 Cash Management Account. 
  
 (a) Borrower shall cooperate with Lender and Servicer in
connection with the establishment and maintenance of a segregated Eligible Account (the “Cash Management 

  

 34 

 
Account”) to be held by Servicer in trust for the benefit of Lender, which Cash Management Account shall be under the sole dominion and control
of Lender. The Cash Management Account shall be entitled “Column Financial, Inc., as Lender, pursuant to Loan Agreement dated as of June 21, 2004 - Cash Management Account.” Borrower hereby (i) grants to Lender a first priority security
interest in the Cash Management Account and all deposits at any time contained therein and the proceeds thereof, and (ii) will take all actions necessary to maintain in favor of Lender a perfected first priority security interest in the Cash
Management Account, including, without limitation, authorizing the filing of UCC-1 Financing Statements and continuations thereof. Borrower will not in any way alter or modify the Cash Management Account and will notify Lender of the account number
thereof. Lender and Servicer shall have the sole right to make withdrawals from the Cash Management Account and all costs and expenses for establishing and maintaining the Cash Management Account shall be paid by Borrower. 
  
 (b) After the occurrence and during the continuance of a
Sweep Event, on each Payment Date (or, if such Payment Date is not a Business Day, on the immediately preceding Business Day) all funds on deposit in the Cash Management Account shall be applied by Lender to the payment of the following items in the
order indicated: 
  

	 	(i)	First, payments in respect of the Tax and Insurance Escrow Funds in accordance with the terms and conditions of Section 7.2 hereof; 

  

	 	(ii)	Second, payment of the Monthly Interest Payment computed at the Applicable Interest Rate; 

  

	 	(iii)	Third, payments to the FF&E Reserve Funds in accordance with the terms and conditions of Section 7.3 hereof; 

  

	 	(iv)	Fourth, payment to Lender of any other amounts then due and payable under the Loan Documents; 

  

	 	(v)	Fifth, to the extent that, in respect of any Other Loan, there is, or Lender reasonably determines that there will be, a shortfall (each an “Other Loan Shortfall”)
during the relevant calendar month in the items referred to (x) in clauses (i)-(vi) of Section 2.6.3(b) of the applicable Other Loan Agreements, funds sufficient to pay such Other Loan Shortfall; 

  

	 	(vi)	Sixth, funds sufficient to pay Operating Expenses for the next calendar month pursuant to the Approved Annual Budget, other than expenses paid, or to be paid to, an Affiliated
Manager; 

  

	 	(vii)	Seventh, funds sufficient to pay Extraordinary Expenses approved by Lender and which are then due and payable, if any; 

  

	 	(viii)	Eighth, funds sufficient to pay Operating Expenses paid, or to be paid to, an Affiliated Manager for the next calendar month pursuant to the Approved Annual Budget; and

  

 35 

	 	(ix)	Lastly, and so long as an Event of Default does not exist, payment of any excess amounts (“Excess Cash Flow”) to Borrower. 

  
 (c) The insufficiency of funds on deposit in the Cash
Management Account shall not relieve Borrower of the obligation to make any payments, as and when due pursuant to this Agreement and the other Loan Documents, and such obligations shall be separate and independent, and not conditioned on any event
or circumstance whatsoever. 
  
 (d) All funds on
deposit in the Cash Management Account following the occurrence of an Event of Default may be applied by Lender in such order and priority as Lender shall determine in its sole discretion. 
  
 2.6.4 Payments Received Under the Cash Management
Agreement. Notwithstanding anything to the contrary contained in this Agreement and the other Loan Documents, and provided no Event of Default has occurred and is continuing, Borrower’s obligations with respect to the monthly payment
of Debt Service and amounts due for the Tax and Insurance Escrow Funds, FF&E Reserve Funds, and any other payment reserves established pursuant to this Agreement or any other Loan Document shall be deemed satisfied to the extent sufficient
amounts are deposited in the Cash Management Account to satisfy such obligations on the dates each such payment is required, regardless of whether any of such amounts are so applied by Lender. 
  
 2.6.5 Application After Event of Default.
Notwithstanding anything to the contrary contained in this Section 2.6, upon the occurrence of an Event of Default, Lender, at its option, may withdraw the Reserve Funds and any other funds of Borrower then in the possession of Lender,
Servicer or Property Account Bank and apply such funds to the items for which the Reserve Funds were established or to the payment of the Obligations and the Other Borrower Obligations in such order, proportion and priority as Lender may determine
in its sole discretion. Lender’s right to withdraw and apply any of the foregoing funds shall be in addition to all other rights and remedies provided to Lender under the Loan Documents. 
  
 2.6.6 Quarterly Net Cash Flow Tests. In order to
ascertain whether or not a Net Cash Flow Failure has occurred or has terminated, Lender shall determine the Net Cash Flow as of the last day of each calendar quarter throughout the term of the Loan (each, a “Quarterly Net Cash Flow
Test”), beginning September, 2004, each of which Quarterly Net Cash Flow Tests and the determinations made with respect thereto shall be based on the information delivered in accordance with Section 5.1.11 hereof, together with any
other evidence which Lender may reasonably require to substantiate or explain the calculation of Net Cash Flow. Notwithstanding the foregoing, if the information required under Section 5.1.11 hereof is not delivered, the Net Cash Flow shall
be determined in Lender’s sole discretion. 
  
 Section 2.7
Extension Options 
  
 2.7.1 First
Extension Option. Borrower shall have the right to extend the Initial Maturity Date to July 9, 2007 (the period commencing on the first (1st) day following the Initial Maturity Date and ending on July 9, 2007 being referred to herein as the
“First Extension Term”), provided, that: (a) Borrower shall have given Lender its written notice of such 

  

 36 

 
extension (an “Extension Notice”) not less than two (2) months nor more than six (6) months prior to the Initial Maturity Date; (b) the
Interest Rate Cap shall be in effect as of the date of the commencement of the First Extension Term (the “First Extension Commencement Date”) for the term of the Loan as extended and assigned to Lender; (c) no Event of Default shall
have occurred and be continuing at the time of the delivery of the Extension Notice with respect to the First Extension Term or on the First Extension Commencement Date; and (d) Borrower shall have delivered to Lender an Officer’s Certificate
in form reasonably acceptable to Lender certifying whether or not an Event of Default has occurred and is continuing, and if so, describing such Event of Default. 
  
 2.7.2 Second Extension Option. In the event that Borrower exercises the extension option for the
First Extension Term, Borrower shall have the right to further extend the Maturity Date to July 9, 2008 (the period commencing on the first (1st) day following the First Extension Term and ending on July 9, 2008 being referred to herein as the
“Second Extension Term”), provided, that: (a) Borrower shall have given Lender an Extension Notice not less than two (2) months nor more than six (6) months prior to the last day of the First Extension Term; (b) the
Interest Rate Cap shall be in effect as of the date of the Commencement of the Second Extension Term (the “Second Extension Commencement Date”) for the term of the Loan as extended and assigned to Lender; (c) no Event of
Default shall have occurred and be continuing at the time of the delivery of the Extension Notice with respect to the Second Extension Term or on the Second Extension Commencement Date; and (d) Borrower shall have delivered to Lender an
Officer’s Certificate in form reasonably acceptable to Lender certifying whether or not an Event of Default has occurred and is continuing, and if so, describing such Event of Default. 
  
 2.7.3 Third Extension Option. In the event that
Borrower exercises the extension option for the Second Extension Term, Borrower shall have the right to further extend the Maturity Date to July 9, 2009 (the period commencing on the first (1st) day following the Second Extension Term and ending on
July 9, 2009 being referred to herein as the “Third Extension Term”), provided, that: (a) Borrower shall have given Lender an Extension Notice not less than two (2) months nor more than six (6) months prior to the last
day of the Second Extension Term; (b) the Interest Rate Cap shall be in effect as of the date of the Commencement of the Third Extension Term (the “Third Extension Commencement Date”) for the term of the Loan as extended and
assigned to Lender; (c) no Event of Default shall have occurred and be continuing at the time of the delivery of the Extension Notice with respect to the Third Extension Term or on the Third Extension Commencement Date; and (d) Borrower shall have
delivered to Lender an Officer’s Certificate in form reasonably acceptable to Lender certifying whether or not an Event of Default has occurred and is continuing, and if so, describing such Event of Default. 
  
 Section 2.8 Substitution. Notwithstanding anything to the contrary set
forth in Section 2.4 hereof, Borrower may substitute (each a “Substitution”) a property (the “Substitute Property”) for the Property upon and subject to the following terms and conditions: 
  
 (a) There shall be no more than one (1) Substitution in the
aggregate with respect to the Property and the other Properties effected during the term of the Loan. 
  
 (b) Lender shall have received at least sixty (60) days prior written notice requesting the Substitution and identifying the Substitute
Property. 
  

 37 

 (c) The Substitute Property shall be a fee parcel and used and operated as a hotel of
like kind and quality as the hotel operated on the Property as of the Closing Date and shall have been completed lien-free and paid for in full in a good and workmanlike manner and in compliance, in all material respects, with all applicable Legal
Requirements. 
  
 (d) On the Substitution Date,
the Loan (in such capacity the “Replaced Loan”) secured by the Mortgage and Second Mortgage encumbering the Substitute Property shall be repaid in full and, subject to the terms hereof, Lender shall make a new Loan (simultaneously
with the full repayment of the Replaced Loan) in an amount equal to the then principal balance of the Replaced Loan (the “Substitution Loan”) to the owner (which shall qualify as a Qualified Borrower) of the Substitute Property (the
“Substitute Borrower”). Notwithstanding the foregoing, at Lender’s election, the foregoing may be affected by the Substitute Borrower assuming the Replaced Loan (in which event the Replaced Loan shall constitute a Substitution
Loan) and the contemporaneous release of the applicable Borrower (the “Replaced Borrower”) from its obligations in respect of the Replaced Loan. The Substitute Borrower shall execute and deliver a Joinder Acknowledgment and
Substitution Loan shall constitute a Loan hereunder. 
  
 (e) (i) The appraised fair market value of the Substitute Property shall be equal to or greater than the original appraised value of the Property as set forth in the appraisal delivered to Lender in connection with the closing of the Loan.
The fair market value of the Property and Substitute Property shall be determined by a firm of appraisers selected by Borrower and approved by Lender (which approval shall not be unreasonably withheld, delayed or conditioned) and based on an
appraisal, dated not more than ninety (90) days prior to the Substitution Date reasonably satisfactory to Lender. All costs of such appraisals shall be paid by Borrower on or prior to the Substitution Date. 
  

	 	(ii)	The actual Net Cash Flow relating to the Substitute Property (based upon the trailing twelve (12) month financial results or such shorter period, as Lender reasonably deems
appropriate, if the Substitute Property has been open for business for less than one year) shall equal or exceed the actual Net Cash Flow relating (based upon the trailing twelve (12) month financial results or such shorter period, as Lender
reasonably deems appropriate, if the Property has been open for business for less than one year) to the Property. 

  
 (f) Lender shall have received from Substitute Borrower and such other Persons as Lender deems reasonably appropriate a Mortgage, a Second
Mortgage, a Loan Agreement, a Note, an Equity Pledge Agreement, all other Loan Documents and Junior Lender Security Documents executed by Borrower, Guarantor and/or any other Person (all of which shall be substantially the form of the Loan Documents
executed in respect of the Loan with such changes thereto as Lender reasonably deems appropriate to reflect the circumstances of the Substitution) (collectively, the “Substitute Loan Documents”). 
  
 (g) The Substitute Loan Documents, financing statements, and
other instruments required to perfect the liens in the collateral contemplated thereby required by 

  

 38 

 
Lender shall have been recorded, registered and filed (as applicable) in such manner as may be required by law to create a valid, perfected lien and security
interest with respect to the Substitute Property and the personal property related thereto. 
  
 (h) The liens created by the Substitute Loan Documents shall be first liens and prior security interests on the Substitute Property and
the personal property related thereto (other than the Second Mortgage), subject only to such exceptions as Lender shall approve in its sole discretion. 
  
 (i) Upon the closing of the Substitute Property (the “Substitution Date”), the Borrower shall have good and marketable
title to the Substitute Property, and good and valid title to any personal property located thereon or used in connection therewith, in each case satisfactory to the Lender. 
  
 (j) Lender shall, at Borrower’s sole cost and expense, receive and approve all Additional Due Diligence
Materials. 
  
 (k) Lender shall have received (x)
a confirmation of all Loan Documents executed by Guarantor and a consent to such Substitution by Guarantor, (y) a confirmation of all guaranties executed by the Other Borrowers and all pledges executed by the pledgors thereof and a consent to such
Substitution by the Other Borrowers and pledgors, and (z) such other instruments and agreements and such certificates and opinions of counsel, in form and substance reasonably satisfactory to Lender in connection with such Substitution as it may
reasonably request. 
  
 (l) The Substitute
Property shall be located within the continental United States. 
  
 (m) No Default or Event of Default shall have occurred and be continuing hereunder, under any other Loan Document or under the Other Borrower Loan Documents on the Substitution Date, and Borrower shall have delivered
to Lender an Officer’s Certificate in form reasonably acceptable to Lender certifying to same. 
  
 (n) Borrower shall pay all reasonable out-of-pocket costs and expenses incurred in connection with any such Substitution and the
reasonable out-of-pocket fees and expenses incurred by Lender and Servicer in connection therewith. Without limiting the generality of the foregoing, Borrower shall, in connection with, and as a condition to, a Substitution, pay the reasonable fees
and expenses of Lender’s attorneys, the reasonable fees and expenses of Lender’s engineers, appraisers, construction consultants, insurance consultants and other due diligence consultants and contractors, recording charges, title insurance
charges, and stamp and/or mortgage or similar taxes, transfer taxes. 
  
 (o) Lender shall have received such assurances and confirmations from the Rating Agencies that the Substitution shall not result in a downgrading, withdrawal or qualification of any rating assigned or the preliminary
or indicative rating to be assigned to any securities issued in connection with any Securitization. 
  

 39 

 (p) Lender shall be satisfied that the Substitution shall not constitute a preference or
fraudulent conveyance or that the Substitution is structured in such a manner as to avoid said risks. 
  
 (q) A Net Cash Flow Failure shall not be in effect on the Substitution Date. 
  
 (r) On or before the Substitution Date, all conditions
precedent with respect to the Replaced Loan shall be satisfied with respect to the Substitute Loan, including, without limitation, delivery of Title Policies with respect to the Substitute Property. 
  
 ARTICLE 3 
  
 CONDITIONS PRECEDENT 
  

Section 3.1 Conditions Precedent to Closing. The obligation of Lender to make the Loan hereunder is subject to the fulfillment by Borrower, or
waiver by Lender, of the following conditions precedent no later than the Closing Date: 
  
 3.1.1 Representations and Warranties; Compliance with Conditions. The representations and warranties of Borrower contained in this
Agreement and the other Loan Documents shall be true and correct in all material respects on and as of the Closing Date with the same effect as if made on and as of such date, and no Default or Event of Default shall have occurred and be continuing;
and Borrower shall be in compliance in all material respects with all terms and conditions set forth in this Agreement and in each other Loan Document on its part to be observed or performed. 
  
 3.1.2 Loan Agreement and Note. Lender shall have
received a copy of this Agreement and the Note, in each case, duly executed and delivered on behalf of Borrower. 
  
 3.1.3 Delivery of Loan Documents; Title Insurance; Reports; Leases. 
  
 (a) Mortgage, Assignment of Leases. Lender shall have received from Borrower fully executed and
acknowledged counterparts of the Mortgage, the Second Mortgage and the Assignment of Leases and evidence that counterparts of the Mortgage, the Second Mortgage and Assignment of Leases have been delivered to the Title Company for recording, in the
reasonable judgment of Lender, so as to effectively create upon such recording valid and enforceable Liens upon the Property, of the requisite priority, in favor of Lender (or such trustee as may be required or desired under local law), subject only
to the Permitted Encumbrances and such other Liens as are permitted pursuant to the Loan Documents. Lender shall have also received from Borrower fully executed counterparts of the other Loan Documents. 
  
 (b) Title Insurance. Lender shall have received Title
Insurance Policies with respect to the Mortgage and the Second Mortgage issued by the Title Company and dated as of the Closing Date, with reinsurance and direct access agreements acceptable to Lender. Such Title Insurance Policies shall (i) provide
coverage in amounts satisfactory to Lender, (ii) insure Lender that the Mortgage and the Second Mortgage, as applicable, creates a valid lien on the Property encumbered thereby of the requisite priority, free and clear of all exceptions from
coverage other than Permitted Encumbrances and standard exceptions and exclusions from 

  

 40 

 
coverage (as modified by the terms of any endorsements), (iii) contain such endorsements and affirmative coverages as Lender may reasonably request, (iv)
name Lender and its successors and assigns as the insured. The Title Insurance Policies shall be assignable, to the extent permitted under applicable state law. Lender also shall have received evidence that all premiums in respect of such Title
Insurance Policies have been paid, and (v) with respect to the Second Mortgage, tie-in and first loss endorsements to the extent available in the State where the Property is located. 
  
 (c) Survey. Lender shall have received a current Survey, certified to the title company and Lender
and their successors and assigns, in form and content satisfactory to Lender and prepared by a professional and properly licensed land surveyor satisfactory to Lender in accordance with the Accuracy Standards for ALTA/ACSM Land Title Surveys as
adopted by ALTA, American Congress on Surveying & Mapping and National Society of Professional Surveyors in 1999. The Survey shall reflect the same legal description contained in the Title Insurance Policy and shall include, among other things,
a metes and bounds description of the real property comprising part of the Property reasonably satisfactory to Lender. The surveyor’s seal shall be affixed to the Survey and the surveyor shall provide a certification for the Survey in form and
substance acceptable to Lender. 
  
 (d)
Insurance. Lender shall have received valid certificates of insurance for the Policies required hereunder, satisfactory to Lender in its sole discretion, and evidence of the payment of all Insurance Premiums payable for the existing policy
period. 
  
 (e) Environmental Reports.
Lender shall have received a Phase I environmental report (and, if recommended by the Phase I environmental report, a Phase II environmental report) in respect of the Property, satisfactory in form and substance to Lender. 
  
 (f) Zoning. Lender shall have received, at
Lender’s option, either (i) (A) letters or other evidence with respect to the Property from the appropriate municipal authorities (or other Persons) concerning applicable zoning and building laws, or (B) an ALTA 3.1 zoning endorsement for the
Title Insurance Policy, or (ii) a zoning opinion letter, in each case in substance reasonably satisfactory to Lender. 
  
 (g) Encumbrances. Borrower shall have taken or caused to be taken such actions in such a manner so that Lender has a valid and
perfected first priority Lien as of the Closing Date with respect to the Mortgage, subject only to applicable Permitted Encumbrances and such other Liens as are permitted pursuant to the Loan Documents, and Lender shall have received satisfactory
evidence thereof. 
  
 3.1.4 Related
Documents. Each additional document not specifically referenced herein, but relating to the transactions contemplated herein, shall be in form and substance reasonably satisfactory to Lender, and shall have been duly authorized, executed and
delivered by all parties thereto and Lender shall have received and approved certified copies thereof. 
  
 3.1.5 Delivery of Organizational Documents. (a) Borrower shall deliver or cause to be delivered to Lender copies certified by
Borrower of all organizational documentation related to Borrower and/or its formation, structure, existence, good standing and/or qualification 

  

 41 

 
to do business, as Lender may request in its sole discretion, including, without limitation, good standing certificates, qualifications to do business in the
appropriate jurisdictions, resolutions authorizing the entering into of the Loan and incumbency certificates as may be requested by Lender. 
  
 (b) Borrower shall deliver or cause to be delivered to Lender copies certified by Borrower of all organizational documentation related to
Principal, Guarantor, and other members and/or partners of Borrower, and/or the formation, structure, existence, good standing and/or qualification to do business of any of the foregoing, as Lender may request in its sole discretion, including,
without limitation, good standing certificates, qualifications to do business in the appropriate jurisdictions, authorizing resolutions and incumbency certificates as may be requested by Lender. 
  
 3.1.6 Opinions of Borrower’s Counsel. Lender
shall have received opinions from Borrower’s counsel with respect to non-consolidation and the due execution, authority, enforceability of the Loan Documents and such other matters as Lender may require, all such opinions in form, scope and
substance satisfactory to Lender and Lender’s counsel in their sole reasonable discretion. 
  
 3.1.7 Intentionally Omitted. 
  
 3.1.8 Basic Carrying Costs. Borrower shall have paid all Basic Carrying Costs relating to the Property which are in arrears,
including without limitation, (a) accrued but unpaid Insurance Premiums, (b) currently due Taxes (including any in arrears) and (c) currently due Other Charges, which amounts shall be funded with proceeds of the Loan. 
  
 3.1.9 Completion of Proceedings. All corporate and
other proceedings taken or to be taken in connection with the transactions contemplated by this Agreement and the other Loan Documents and all documents incidental thereto shall be satisfactory in form and substance to Lender, and Lender shall have
received all such counterpart originals or certified copies of such documents as Lender may reasonably request. 
  
 3.1.10 Payments. All payments, deposits or escrows required to be made or established by Borrower under this Agreement, the Note
and the other Loan Documents on or before the Closing Date shall have been paid. 
  
 3.1.11 Intentionally Omitted. 
  
 3.1.12 Transaction Costs. Borrower shall have paid or reimbursed Lender for all title insurance premiums, recording and filing
fees, costs of environmental reports, Physical Conditions Reports, appraisals and other reports, the fees and costs of Lender’s counsel and all other third party out-of-pocket expenses reasonably incurred in connection with the origination of
the Loan. 
  
 3.1.13 Leases and Rent Roll.
Lender shall have received copies of all Leases and certified copies of any Leases as requested by Lender. Lender shall have received a current certified rent roll of the Property, reasonably satisfactory in form and substance to Lender. 

 

 42 

 3.1.14 Tax Lot. Lender shall have received evidence that the Property constitutes
one (1) or more separate tax lots, which evidence shall be satisfactory in form and substance to Lender. 
  
 3.1.15 Physical Conditions Report. Lender shall have received a Physical Conditions Report, which report shall be satisfactory in
form and substance to Lender. 
  
 3.1.16
Management Agreement. Lender shall have received a copy of the Management Agreement, which shall be reasonably satisfactory in form and substance to Lender. 
  
 3.1.17 Appraisal. Lender shall have received an appraisal of the Property, which shall be
satisfactory in form and substance to Lender. 
  
 3.1.18 Financial Statements. Lender shall have received a balance sheet with respect to the Property for the two (2) most recent Fiscal Years (audited, if available), each in form and substance satisfactory to Lender. 
  
 3.1.19 Further Documents. Lender or its counsel shall
have received such other and further approvals, opinions, documents and information as Lender or its counsel may have reasonably requested including the Loan Documents in form and substance satisfactory to Lender and its counsel. 
  
 3.1.20 Other Loans. All conditions precedent to the
closing of each of the Other Loans shall have been satisfied, as determined by Lender in its sole discretion, and each Other Loan shall have closed or shall close simultaneously with the closing of the Loan. 
  
 ARTICLE 4 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Section 4.1 Borrower Representations. Borrower represents and warrants as of the date hereof and as of the Closing
Date that: 
  
 4.1.1 Organization.
Borrower has been duly organized and is validly existing and in good standing with requisite power and authority to own its properties and to transact the businesses in which it is now engaged. Borrower is duly qualified to do business and is in
good standing in each jurisdiction where it is required to be so qualified in connection with its properties, businesses and operations. Borrower possesses all rights, licenses, permits and authorizations, governmental or otherwise, necessary to
entitle it to own its properties and to transact the businesses in which it is now engaged, and the sole business of Borrower is the ownership, management and operation of the Property. The ownership interests of Borrower are as set forth on the
organizational chart attached hereto as Schedule III. 
  
 4.1.2 Proceedings. Borrower has taken all necessary action to authorize the execution, delivery and performance of this Agreement and the other Loan Documents. This Agreement and the other Loan Documents have
been duly executed and delivered by or on behalf of Borrower and constitute the legal, valid and binding obligations of Borrower 

  

 43 

 
enforceable against Borrower in accordance with their respective terms, subject only to applicable bankruptcy, insolvency and similar laws affecting rights
of creditors generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 
  
 4.1.3 No Conflicts. The execution, delivery and performance of this Agreement and the other Loan
Documents by any Significant Party, as applicable, will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance (other
than pursuant to the Loan Documents) upon any of the property or assets of Borrower pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, partnership agreement, management agreement or other agreement or instrument to
which Borrower is a party or by which any of Borrower’s property or assets is subject, nor will such action result in any violation of the provisions of any statute or any order, rule or regulation of any Governmental Authority having
jurisdiction over Borrower or any of Borrower’s properties or assets, and any consent, approval, authorization, order, registration or qualification of or with any such Governmental Authority required for the execution, delivery and performance
by any Significant Party, as applicable, of this Agreement or any other Loan Documents has been obtained and is in full force and effect. 
  
 4.1.4 Litigation. There are no actions, suits or proceedings at law or in equity by or before any Governmental Authority or other
agency now pending or, to Borrower’s knowledge, threatened against or affecting any Significant Party or the Property, which actions, suits or proceedings, if determined against such Significant Party or the Property, are reasonably likely to
have a Material Adverse Effect. 
  
 4.1.5
Agreements. Borrower is not a party to any agreement or instrument or subject to any restriction which might materially and adversely affect Borrower or the Property, or Borrower’s business, properties or assets, operations or condition,
financial or otherwise. Borrower is not in default in any material respect in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument to which it is a party or by which
Borrower or the Property are bound. Borrower has no material financial obligation under any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which Borrower is a party or by which Borrower or the Property is
otherwise bound, other than (a) any obligations incurred in the ordinary course of the operation of the Property as permitted pursuant to clause (s) of the definition of “Special Purpose Entity” set forth in Section 1.1 hereof, (b)
the obligations under the Loan Documents. 
  
 4.1.6 Title. (a) Borrower has good, marketable and insurable fee title to the Property, free and clear of all Liens whatsoever except the Permitted Encumbrances, such other Liens as are permitted pursuant to the Loan Documents and
the Liens created by the Loan Documents. The Permitted Encumbrances in the aggregate do not materially and adversely affect the value, operation or use of the Property (as currently used) or Borrower’s ability to repay the Loan. The Mortgage
and the Assignment of Leases, when properly recorded in the appropriate records, together with any Uniform Commercial Code financing statements required to be filed in connection therewith, will create (a) a valid, perfected first priority lien on
the Property, subject only to Permitted Encumbrances and the Liens created by the Loan Documents, and (b) perfected security interests in and to, and perfected collateral assignments of, all 

  

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personalty (including the Leases), all in accordance with the terms thereof, in each case subject only to any applicable Permitted Encumbrances, such other
Liens as are permitted pursuant to the Loan Documents and the Liens created by the Loan Documents. There are no claims for payment for work, labor or materials affecting the Property which are or may become a Lien prior to, or of equal priority
with, the Liens created by the Loan Documents. 
  
 (b) The Second Mortgage, when properly recorded in the appropriate public records, together with any Uniform Commercial Code financing statements required to be filed in connection therewith, will create (i) a valid, perfected second
priority Lien on the Property, subject only to Permitted Encumbrances and the Lien of the Mortgage and (ii) perfected security interests in and to, and perfected collateral assignments of, all Personal Property (including the Leases), all in
accordance with the terms thereof, in each case subject only to the Mortgage and any applicable Permitted Encumbrances to the extent that perfection occurs through the recording of a Mortgage or the filing of a financing statement. 
  
 4.1.7 Solvency. Borrower has (a) not entered into the
transaction contemplated by this Agreement or executed the Note, this Agreement or any other Loan Documents with the actual intent to hinder, delay or defraud any creditor and (b) received reasonably equivalent value in exchange for its obligations
under such Loan Documents. After giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following the making of the Loan, exceed Borrower’s total liabilities, including, without limitation,
subordinated, unliquidated, disputed and contingent liabilities. The fair saleable value of Borrower’s assets is and will, immediately following the making of the Loan, be greater than Borrower’s probable liabilities, including the maximum
amount of its contingent liabilities on its debts as such debts become absolute and matured. Borrower’s assets do not and, immediately following the making of the Loan will not, constitute unreasonably small capital to carry out its business as
conducted or as proposed to be conducted. Borrower does not intend to, and does not believe that it will, incur debts and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such debts and liabilities as
they mature (taking into account the timing and amounts of cash to be received by Borrower and the amounts to be payable on or in respect of the obligations of Borrower). No petition in bankruptcy has been filed against Borrower or any of its
constituent Persons, and neither Borrower nor any of its constituent Persons has ever made an assignment for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. Neither Borrower nor any of its constituent
Persons are contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of Borrower’s assets or properties, and Borrower has no knowledge of any
Person contemplating the filing of any such petition against it or any of its constituent Persons. 
  
 4.1.8 Full and Accurate Disclosure. No statement of fact made by Borrower in this Agreement or in any of the other Loan Documents
contains any untrue statement of a material fact or omits to state any material fact necessary to make statements contained herein or therein not misleading. There is no material fact presently known to Borrower which has not been disclosed to
Lender which adversely affects, nor as far as Borrower can foresee, might adversely affect, the Property or the business, operations or condition (financial or otherwise) of Borrower. 
  

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 4.1.9 No Plan Assets. Borrower is not an “employee benefit plan,” as
defined in Section 3(3) of ERISA, subject to Title I of ERISA, and none of the assets of Borrower constitutes or will constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101. In addition, (a)
Borrower is not a “governmental plan” within the meaning of Section 3(32) of ERISA, and (b) transactions by or with Borrower are not subject to any state statute regulating investments of, or fiduciary obligations with respect to,
governmental plans similar to the provisions of Section 406 of ERISA or Section 4975 of the Code currently in effect, which prohibit or otherwise restrict the transactions contemplated by this Agreement. 
  
 4.1.10 Compliance. Borrower and the Property
(including the use thereof) comply in all material respects with all applicable Legal Requirements, including, without limitation, building and zoning ordinances and codes. Borrower is not in default or violation of any order, writ, injunction,
decree or demand of any Governmental Authority. There has not been committed by Borrower, to Borrower’s knowledge, or any other Person in occupancy of or involved with the operation or use of the Property any act or omission affording any
Governmental Authority the right of forfeiture as against the Property or any part thereof or any monies paid in performance of Borrower’s obligations under any of the Loan Documents. 
  
 4.1.11 Financial Information. All financial data,
including, without limitation, the statements of cash flow and income and operating expense, that have been delivered to Lender in connection with the Loan (i) fairly and accurately represent the financial condition of the Significant Parties and
the Property as of the date of such reports, and (iii) to the extent audited by an independent certified public accounting firm, have been prepared in accordance with GAAP throughout the periods covered, except as disclosed therein. Except for
Permitted Encumbrances, Borrower does not have any contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments that are known to Borrower and reasonably
likely to have a Material Adverse Effect on the Property or the operation thereof as a hotel, except as referred to or reflected in said financial statements. Since the date of such financial statements, there has been no material adverse change in
the financial condition, operation or business of Borrower from that set forth in said financial statements. 
  
 4.1.12 Condemnation. No Condemnation or other proceeding has been commenced or, to Borrower’s knowledge, is threatened or
contemplated with respect to all or any portion of the Property or for the relocation of any roadway providing access to the Property. 
  
 4.1.13 Federal Reserve Regulations. No part of the proceeds of the Loan will be used for the purpose of purchasing or acquiring any
“margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors, or
for any purposes prohibited by any Legal Requirements or by the terms and conditions of this Agreement or the other Loan Documents. 
  
 4.1.14 Utilities and Public Access. The Property has rights of access to public ways and is served by water, sewer, sanitary sewer
and storm drain facilities adequate to service the Property for its intended uses. All public utilities necessary or convenient to the full use and enjoyment of the Property are located either in the public right-of-way abutting the Property 

  

 46 

 
(which are connected so as to serve the Property without passing over other property) or in recorded easements serving the Property and such easements are
set forth in and insured by the Title Insurance Policy. All roads necessary for the use of the Property for its current purpose have been completed and dedicated to public use and accepted by all Governmental Authorities. 
  
 4.1.15 Not a Foreign Person. Borrower is not a
“foreign person” within the meaning of §1445(f)(3) of the Code. 
  
 4.1.16 Separate Lots. The Property is comprised of one (1) or more parcels which constitute a separate tax lot or lots and does not
constitute a portion of any other tax lot not a part of the Property. 
  
 4.1.17 Assessments. To Borrower’s knowledge, there are (a) no pending or proposed special or other assessments for public improvements or otherwise affecting the Property, and (ii) no contemplated
improvements to the Property that may result in such special or other assessments. 
  
 4.1.18 Enforceability. The Loan Documents are not subject to any right of rescission, set-off, counterclaim or defense by Borrower,
Principal or Guarantor, including the defense of usury, nor would the operation of any of the terms of the Loan Documents, or the exercise of any right thereunder, render the Loan Documents unenforceable (subject to principles of equity and
bankruptcy, insolvency and other laws generally affecting creditors’ rights and the enforcement of debtors’ obligations), and Borrower, Principal and Guarantor have not asserted any right of rescission, set-off, counterclaim or defense
with respect thereto. 
  
 4.1.19 No Prior
Assignment. There are no prior assignments of the Leases or any portion of the Rents due and payable or to become due and payable which are presently outstanding. 
  
 4.1.20 Insurance. Borrower has obtained and has delivered to Lender valid certificates of insurance
evidencing the Policies along with evidence satisfactory to Lender of the payment in full of all premiums required thereunder. No claims have been made under any such Policies, and no Person, including Borrower, has done, by act or omission,
anything which would impair the coverage of any such Policies. Borrower shall use commercially reasonable efforts to obtain and deliver to Lender certified copies of the Policies as soon as practicable after the date of this Agreement. 

 
 4.1.21 Use of Property. The Property is used
exclusively as a hotel and other appurtenant and related uses. 
  
 4.1.22 Certificate of Occupancy; Licenses. All material certifications, permits, licenses and approvals, including without limitation, certificates of completion and occupancy permits, required for the legal
use, occupancy and/or operation of the Property as a hotel (collectively, the “Licenses”), have been obtained and are in full force and effect. Borrower shall keep and maintain all Licenses necessary for the operation of the
Property as a hotel. The use being made of the Property is in conformity in all material respects with the certificate of occupancy issued for the Property. 
  

 47 

 4.1.23 Flood Zone. None of the Improvements on the Property are located in an area
identified by the Federal Emergency Management Agency as an area having special flood hazards or, if so located, the flood insurance required pursuant to Section 6.1(a)(i) hereof is in full force and effect with respect to the Property.

  
 4.1.24 Physical Condition. The
Property, including, without limitation, all buildings, improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment, elevators, exterior sidings
and doors, landscaping, irrigation systems and all structural components are in good condition, order and repair in all material respects. Other than as disclosed in the “Engineering Report,” there exists no structural or other material
defects or damages in the Property, whether latent or otherwise, and Borrower has not received notice from any insurance company or bonding company of any defects or inadequacies in the Property, or any part thereof, which would adversely affect the
insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond. 
  
 4.1.25 Boundaries. All of the Improvements which were included in determining the appraised value of
the Property lie wholly within the boundaries and building restriction lines of the Property, and no improvements on adjoining properties encroach upon the Property, and no easements or other encumbrances upon the Property encroach upon any of the
Improvements, so as to affect the value or marketability of the Property except those which are insured against by the Title Insurance Policy. 
  
 4.1.26 Leases. The Property is not subject to any Leases other than the Leases described in Schedule I attached hereto and
made a part hereof. No Person has any possessory interest in the Property or right to occupy the same except under and pursuant to the provisions of the Leases or as hotel guests, customers or invitees in the ordinary course of business at the
Property. The current Leases are in full force and effect and there are no defaults thereunder by either party and there are no conditions that, with the passage of time or the giving of notice, or both, would constitute defaults thereunder. The
copies of the Leases delivered to Lender are true and complete, and there are no oral agreements with Borrower with respect thereto; (Lender acknowledges and agrees that Borrower has no obligation to deliver copies of Leases under 5,000 square feet
unless specifically so requested by Lender). No Rent (including security deposits) has been paid more than one (1) month in advance of its due date. All work to be performed by Borrower under each Lease has been performed as required in such Lease
and has been accepted by the applicable tenant, and any payments, free rent, partial rent, rebate of rent or other payments, credits, allowances or abatements required to be given by Borrower to any tenant has already been received by such tenant.
There has been no prior sale, transfer or assignment, hypothecation or pledge of any Lease or of the Rents received therein which is still in effect. No tenant listed on Schedule I has assigned its Lease or sublet all or any portion of the
premises demised thereby, no such tenant holds its leased premises under assignment or sublease, nor does anyone except such tenant and its employees occupy such leased premises. No tenant under any Lease has a right or option pursuant to such Lease
or otherwise to purchase all or any part of the Property of which the leased premises are a part. No tenant under any Lease has any right or option for additional space in the Improvements. 
  

 48 

 4.1.27 Survey. The Survey for the Property delivered to Lender in connection with
this Agreement has been prepared in accordance with the provisions of Section 3.1.3(c) hereof, and does not fail to reflect any material matter affecting the Property or the title thereto. 
  
 4.1.28 Principal Place of Business; State of
Organization. Borrower’s principal place of business as of the date hereof is the address set forth in the introductory paragraph of this Agreement. The Borrower is organized under the laws of the State of Delaware. 
  
 4.1.29 Filing and Recording Taxes. All transfer
taxes, deed stamps, intangible taxes or other amounts in the nature of transfer taxes required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the transfer of the Property to Borrower have been
paid. All mortgage, mortgage recording, stamp, intangible or other similar tax required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the execution, delivery, recordation, filing, registration,
perfection or enforcement of any of the Loan Documents, including, without limitation, the Mortgage and the Second Mortgage, have been paid or are being paid simultaneously herewith, and the Mortgage and the Second Mortgage and the other Loan
Documents have been validly executed and delivered and are enforceable in accordance with their respective terms by Lender (or any subsequent holder thereof), subject to principles of equity and bankruptcy, insolvency and other laws generally
applicable to creditors’ rights and the enforcement of debtors’ obligations. 
  
 4.1.30 Special Purpose Entity/Separateness. 
  
 (a) Until the Debt has been paid in full, Borrower hereby represents, warrants and covenants that (i)
Borrower is, shall be and shall continue to be a Special Purpose Entity, and (ii) Principal is, shall be and shall continue to be a Special Purpose Entity. 
  
 (b) The representations, warranties and covenants set forth in Section 4.1.30(a) shall survive for so long as any amount remains
payable to Lender under this Agreement or any other Loan Document. 
  
 (c) All of the assumptions made in the Insolvency Opinion, including, but not limited to, any exhibits attached thereto, are true and correct in all respects material to the opinions set forth therein and any
assumptions made in any subsequent non-consolidation opinion required to be delivered in connection with the Loan Documents (an “Additional Insolvency Opinion”), including, but not limited to, any exhibits attached thereto, will
have been and shall be true and correct in all respects. Borrower has complied and will comply with, and Principal has complied and Borrower will cause Principal to comply with, all of the assumptions made with respect to Borrower and Principal in
the Insolvency Opinion. Borrower will, and shall cause Principal to, have complied and will comply with all of the assumptions made with respect to Borrower and Principal in any Additional Insolvency Opinion. Each entity other than Borrower and
Principal with respect to which an assumption shall be made in any Additional Insolvency Opinion will have complied and will comply with all of the assumptions made with respect to it in any Additional Insolvency Opinion. 
  
 4.1.31 Management Agreement. The Management Agreement
is in full force and effect and there is no default continuing beyond applicable grace or cure periods thereunder by 

  

 49 

 
any party thereto and no event has occurred that, with the passage of time and/or the giving of notice would constitute a default thereunder. 
  
 4.1.32 Illegal Activity. To Borrower’s
knowledge, no portion of the Property has been or will be purchased with proceeds of any illegal activity. 
  
 4.1.33 No Change in Facts or Circumstances; Disclosure. All information submitted by Borrower to Lender including, but not limited
to, rent rolls, reports, certificates and other documents submitted in connection with the Loan or in satisfaction of the terms thereof and all statements of fact made by Borrower in this Agreement or in any other Loan Document, are accurate,
complete and correct in all material respects. There has been no material adverse change in any condition, fact, circumstance or event that would make any such information inaccurate, incomplete or otherwise misleading in any material respect or
that otherwise is reasonably likely to have a Material Adverse Effect. Borrower has disclosed to Lender all material facts and has not failed to disclose any material fact that could cause any Provided Information or representation or warranty made
herein to be materially misleading. 
  
 4.1.34
Investment Company Act. Borrower is not (a) an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding
company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a “holding company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act
of 1935, as amended; or (c) subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money. 
  
 4.1.35 Embargoed Person. At all times throughout the term of the Loan, including after giving effect to any Transfers permitted
pursuant to the Loan Documents, (a) none of the funds or other assets of Borrower or Principal shall constitute property of, or shall be beneficially owned, directly or indirectly, by any Person subject to trade restrictions under United States law,
including, but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated under any such United
States laws, with the result that the investment in Borrower or Principal, as applicable (whether directly or indirectly), is or would be prohibited by law (each, an “Embargoed Person”) or the Loan made by Lender is or would be in
violation of law; (b) no Embargoed Person shall have any interest of any nature whatsoever in Borrower or Principal, as applicable, with the result that the investment in Borrower or Principal, as applicable (whether directly or indirectly), is or
would be prohibited by law or the Loan is or would be in violation of law; and (c) none of the funds of Borrower, Principal or Guarantor, as applicable, shall be derived from any unlawful activity by Borrower, Principal or Guarantor with the result
that the investment in Borrower, Principal or Guarantor, as applicable (whether directly or indirectly), is or would be prohibited by law or the Loan is or would be in violation of law. 
  
 4.1.36 Cash Management Account. 
  
 (a) This Agreement, together with the other Loan Documents, creates a valid and continuing security interest
(as defined in the Uniform Commercial Code of the State of 

  

 50 

 
Delaware) in the Property Account and Cash Management Account in favor of Lender, which security interest is prior to all other Liens, other than Permitted
Encumbrances, and is enforceable as such against creditors of and purchasers from Borrower. Other than in connection with the Loan Documents and except for Permitted Encumbrances, Borrower has not sold or otherwise conveyed the Property Account and
Cash Management Account; 
  
 (b) Intentionally
Omitted. 
  
 (c) Pursuant and subject to the
terms hereof, the Property Account Bank has agreed to comply with all instructions originated by Lender and Borrower, as applicable, without further consent by Borrower, directing disposition of the Property Account and all sums at any time held,
deposited or invested therein, together with any interest or other earnings thereon, and all proceeds thereof (including proceeds of sales and other dispositions), whether accounts, general intangibles, chattel paper, deposit accounts, instruments,
documents or securities; and 
  
 (d) The Property
Account and Cash Management Account are not in the name of any Person other than Borrower, as pledgor, or Lender, as pledgee. 
  
 4.1.37 Intentionally Omitted. 
  
 4.1.38 Intentionally Omitted. 
  
 Section 4.2 Survival of Representations. Borrower agrees that all of the representations and warranties of Borrower set forth in Section 4.1
hereof and elsewhere in this Agreement and in the other Loan Documents shall survive for so long as any amount remains owing to Lender under this Agreement or any of the other Loan Documents by Borrower. All representations, warranties, covenants
and agreements made in this Agreement or in the other Loan Documents by Borrower shall be deemed to have been relied upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf. 
  
 ARTICLE 5 
  
 BORROWER COVENANTS 
  
 Section 5.1 Affirmative Covenants. From the date hereof and until payment and performance in full of all obligations of Borrower under the Loan
Documents or the earlier release of the Lien of the Mortgage (and all related obligations) in accordance with the terms of this Agreement and the other Loan Documents, Borrower hereby covenants and agrees with Lender that: 
  
 5.1.1 Existence; Compliance with Legal Requirements.
Borrower shall do or cause to be done all things necessary to preserve, renew and keep in full force and effect its existence, rights, licenses, permits and franchises and comply, in all material respects, with all Legal Requirements applicable to
Borrower and the Property. There shall never be committed by Borrower, and Borrower shall not permit any other Person in occupancy of or involved with the operation or use of the Property to commit, any act or omission affording the federal
government or any state or local government the right of forfeiture against the Property or any part thereof or any monies paid in performance of Borrower’s obligations under any of the Loan 

  

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Documents. Borrower hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording such right of forfeiture. Borrower
shall at all times reasonably maintain, preserve and protect all material franchises and material trade names, preserve all the remainder of its property used or useful in the conduct of its business, and shall keep the Property in reasonably good
working order and repair, and from time to time make, or cause to be made, all reasonably necessary repairs, renewals, replacements, betterments and improvements thereto, all as more fully provided in the Mortgage. Borrower shall keep the Property
insured at all times by financially sound and reputable insurers, to such extent and against such risks, and maintain liability and such other insurance, as is more fully provided in this Agreement. After prior notice to Lender, Borrower, at its own
expense, may contest by appropriate legal proceeding promptly initiated and conducted in good faith and with due diligence, the validity of any Legal Requirement, the applicability of any Legal Requirement to Borrower or the Property or any alleged
violation of any Legal Requirement, provided, that: (a) no Release Default or Event of Default has occurred and remains uncured; (b) Borrower is permitted to do so under the provisions of any mortgage or deed of trust superior in lien
to the Mortgage; (c) such proceeding shall be permitted under and be conducted in accordance with the provisions of any instrument to which Borrower is subject and shall not constitute a default thereunder and such proceeding shall be conducted in
accordance with all applicable statutes, laws and ordinances; (d) neither the Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost; (e) Borrower shall, upon final determination
thereof, promptly comply with any such Legal Requirement determined to be valid or applicable or cure any violation of any Legal Requirement; (f) such proceeding shall suspend the enforcement of the contested Legal Requirement against Borrower
and/or the Property; and (g) Borrower shall furnish such security as may be required in the proceeding, or as may be reasonably requested by Lender, to insure compliance with such Legal Requirement, together with all interest and penalties payable
in connection therewith. Lender may apply any such security, as necessary to cause compliance with such Legal Requirement at any time when, in the reasonable judgment of Lender, the validity, applicability or violation of such Legal Requirement is
finally established or the Property (or any part thereof or interest therein) shall be in imminent danger of being sold, forfeited, terminated, cancelled or lost. 
  
 5.1.2 Taxes and Other Charges. Borrower shall pay all Taxes and Other Charges now or hereafter levied
or assessed or imposed against the Property, or any part thereof, prior to delinquency; provided, however, Borrower’s obligation to directly pay Taxes shall be suspended for so long as adequate reserves for same are maintained
pursuant to Section 7.2 hereof. Borrower shall furnish to Lender receipts for the payment of the Taxes and the Other Charges prior to the date the same shall become delinquent provided, however, Borrower is not required to
furnish such receipts for payment of Taxes in the event that such Taxes have been paid by Lender pursuant to Section 7.2 hereof. Borrower shall not suffer and shall promptly cause to be paid and discharged any Lien or charge whatsoever which
may be or become a Lien or charge against the Property and that is prohibited in accordance with Section 5.2.2 hereof, and shall pay for all utility services provided to the Property prior to delinquency. After prior notice to Lender,
Borrower, at its own expense, may contest by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any Taxes, Other Charges or other Liens,
provided, that: (a) no Release Default or Event of Default has occurred and remains uncured; (b) Borrower is permitted to contest same under the provisions of any mortgage or deed of trust superior in lien 

  

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to the Mortgage; (c) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower is
subject and shall not constitute a default thereunder and such proceeding shall be conducted in accordance with all applicable statutes, laws and ordinances; (d) neither the Property nor any part thereof or interest therein will be in danger of
being sold, forfeited, terminated, cancelled or lost; (e) Borrower shall promptly upon final determination thereof pay the amount of any such Taxes or Other Charges, together with all costs, interest and penalties which may be payable in connection
therewith; (f) such proceeding shall suspend the collection of such contested Taxes or Other Charges from the Property; and (g) Borrower shall furnish such security as may be required in the proceeding, or as may be reasonably requested by Lender,
to insure the payment of any such Taxes or Other Charges, together with all interest and penalties thereon. Lender may pay over any such other security or part thereof held by Lender to the claimant entitled thereto at any time when, in the judgment
of Lender, the entitlement of such claimant is established or the Property (or any part thereof or interest therein) shall be in imminent danger of being sold, forfeited, terminated, cancelled or lost or there shall be any danger of the Lien of the
Mortgage or the Second Mortgage being primed by any related Lien. 
  
 5.1.3 Litigation. Borrower shall give prompt notice to Lender of any litigation or governmental proceedings pending or threatened in writing against Borrower, Principal and/or Guarantor which is reasonably
likely to cause a Material Adverse Effect. 
  
 5.1.4 Access to Property. Borrower shall permit agents, representatives and employees of Lender to inspect the Property or any part thereof at reasonable hours upon reasonable advance notice (which may be given verbally). 

 
 5.1.5 Notice of Default. Borrower shall promptly
advise Lender of any material adverse change in Borrower’s, Principal’s or Guarantor’s condition, financial or otherwise, or of the occurrence of any Default or Event of Default of which Borrower has knowledge. 
  
 5.1.6 Cooperate in Legal Proceedings. Borrower shall
cooperate fully with Lender with respect to any proceedings before any court, board or other Governmental Authority which may in any way affect the rights of Lender hereunder or any rights obtained by Lender under any of the other Loan Documents
and, in connection therewith, permit Lender, at its election, to participate in any such proceedings. 
  
 5.1.7 Perform Loan Documents. Borrower shall observe, perform and satisfy all the terms, provisions, covenants and conditions of,
and shall pay when due all costs, fees and expenses to the extent required under the Loan Documents executed and delivered by, or applicable to, Borrower. Payment of the costs and expenses associated with any of the foregoing shall be in accordance
with the terms and provisions of this Agreement, including, without limitation, the provisions of Section 10.13 hereof. 
  
 5.1.8 Award and Insurance Benefits. Borrower shall cooperate with Lender in obtaining for Lender the benefits of any Awards or
Insurance Proceeds lawfully or equitably payable in connection with the Property, and Lender shall be reimbursed for any expenses reasonably incurred in connection therewith (including reasonable attorneys’ fees and disbursements, and the
payment by Borrower of the expense of an appraisal on behalf of Lender 

  

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in case of Casualty or Condemnation affecting the Property or any part thereof) out of such Insurance Proceeds. 
  
 5.1.9 Further Assurances. Borrower shall, at
Borrower’s sole cost and expense: 
  
 (a)
furnish to Lender all instruments, documents, boundary surveys, footing or foundation surveys, certificates, plans and specifications, appraisals, title and other insurance reports and agreements, and each and every other document, certificate,
agreement and instrument required to be furnished by Borrower pursuant to the terms of the Loan Documents or which are reasonably requested by Lender in connection therewith; 
  
 (b) execute and deliver to Lender such documents, instruments, certificates, assignments and other writings,
and do such other acts necessary or desirable, to evidence, preserve and/or protect the collateral at any time securing or intended to secure the obligations of Borrower under the Loan Documents, as Lender may reasonably require; and 
  
 (c) do and execute all and such further lawful and
reasonable acts, conveyances and assurances for the better and more effective carrying out of the intents and purposes of this Agreement, the other Loan Documents, as Lender shall reasonably require from time to time. 
  
 5.1.10 Mortgage Taxes. Borrower represents that it
has paid all state, county and municipal recording and all other taxes imposed upon the execution and recordation of the Mortgage. 
  
 5.1.11 Financial Reporting. 
  
 (a) Borrower will keep and maintain or will cause to be kept and maintained on a Fiscal Year basis, in accordance with GAAP and the
Uniform System of Accounts (or such other accounting basis acceptable to Lender), proper and accurate books, records and accounts reflecting all of the financial affairs of Borrower and all items of income and expense in connection with the
operation of the Property. Lender shall have the right from time to time at all times during normal business hours upon reasonable notice (which may be verbal) to examine such books, records and accounts at the office of Borrower or any other Person
maintaining such books, records and accounts and to make such copies or extracts thereof as Lender shall desire. After the occurrence of an Event of Default, Borrower shall pay any costs and expenses incurred by Lender to examine Borrower’s
accounting records with respect to the Property, as Lender shall determine to be necessary or appropriate in the protection of Lender’s interest. 
  
 (b) Borrower will furnish to Lender annually, within one hundred twenty (120) days following the end of each Fiscal Year of Borrower, a
complete copy of Borrower’s combined annual financial statements (combined with those of the Other Borrowers) and Guarantor’s consolidated annual financial statements audited by a “Big Four” accounting firm or other independent
certified public accountant acceptable to Lender in accordance with GAAP (or such other accounting basis acceptable to Lender) covering the Property and the Other Properties for such Fiscal Year and containing statements of profit and loss for
Borrower, the Other Borrowers and Guarantor and a balance sheet for Borrower, the Other Borrowers and Guarantor. Such statements, with respect to the Borrower and the Other Borrowers shall set forth the 

  

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financial condition and the results of operations for the Property and the Other Properties for such Fiscal Year, and shall include, but not be limited to,
amounts representing annual Aggregate Net Cash Flow, Aggregate Net Operating Income, Aggregate Gross Income from Operations and Aggregate Operating Expenses. In addition, such statements shall include supplementary information setting forth the
financial condition and results of operation for each of Borrower and the Other Borrowers, Borrower’s, the Other Borrowers’ and Guarantor’s annual financial statements shall be accompanied by (i) an unqualified opinion of a “Big
Four” accounting firm or other independent certified public accountant reasonably acceptable to Lender, (ii) a schedule audited by such independent certified public accountant reconciling Aggregate Net Operating Income to Aggregate Net Cash
Flow (the “Net Cash Flow Schedule”), which shall itemize all adjustments made to Aggregate Net Operating Income to arrive at Aggregate Net Cash Flow deemed material by such independent certified public accountant, and (iii) an
Officer’s Certificate certifying that (x) the Capital Expenditures for such year and (y) each annual financial statement presents fairly the financial condition and the results of operations of Borrower, the Other Borrowers, Guarantor and the
Property and the Other Properties being reported upon and that such financial statements have been prepared in accordance with GAAP and as of the date thereof whether there exists an event or circumstance which constitutes a Default or Event of
Default under the Loan Documents executed and delivered by, or applicable to, Borrower, the Other Borrowers or Guarantor, and if such Default or an Event of Default exists, the nature thereof, the period of time it has existed and the action then
being taken to remedy the same. 
  
 (c) Borrower
will furnish, or cause to be furnished, to Lender on or before (i) twenty-five (25) days after the end of each calendar month thereafter, and (ii) forty-five (45) days after the end of each calendar quarter thereafter, the following items,
accompanied by an Officer’s Certificate stating that such items are true, correct, accurate, and complete and fairly present the financial condition and results of the operations of Borrower and the Property (subject to normal year-end
adjustments) as applicable: (i) monthly and year-to-date operating statements prepared for each calendar month, noting Net Operating Income, Gross Income from Operations, and Operating Expenses (not including any contributions to the FF&E
Reserve Funds and/or the Debt Service Reserve), and, upon Lender’s request, other information necessary and sufficient to fairly represent the financial position and results of operation of the Property during such period, and containing a
comparison of budgeted income and expenses and the actual income and expenses together with a detailed explanation of any variances that either exceed (1) 10% and $10,000 with respect to any one (1) line item or (2) 5% in the aggregate between all
budgeted and actual amounts for such periods, all in form reasonably satisfactory to Lender; and (ii) a calculation reflecting the annual Debt Service Coverage Ratio for the immediately preceding twelve (12) month period for which financial
statements are available as of the last day of each calendar month or quarter (as applicable), and (iii) a computation of Net Cash Flow for such period. In addition, such Officer’s Certificate shall also state that the representations and
warranties of Borrower set forth in Section 4.1.30 are true and correct as of the date of such certificate and whether there are trade payables outstanding for more than sixty (60) days. 
  
 (d) Intentionally Omitted. 
  
 (e) Intentionally Omitted. 
  

 55 

 (f) Intentionally Omitted. 
  
 (g) Intentionally Omitted. 
  
 (h) Intentionally Omitted. 
  
 (i) Borrower will furnish to Lender on or before forty-five (45) days after the end of each calendar quarter
(a) a statement setting forth (i) the Aggregate Net Cash Flow for each calendar quarter and calendar year occurring during the full twelve (12) calendar month period immediately proceeding the date of such statement for which financial statements
are available. 
  
 (j) Lender hereby approves the
Annual Budget and the Annual FF&E Budget for the partial year 2004 previously delivered to it. For each calendar year commencing with calendar year 2005, Borrower shall submit to Lender (i) an Annual Budget for the Property and (ii) an Annual
FF&E Budget with respect to FF&E required to be made to the Property for such year, each not later than thirty (30) days prior to the commencement of such period or calendar year in form reasonably satisfactory to Lender. The Annual FF&E
Budget shall provide for FF&E expenditures equal to at least four (4%) percent of the Gross Income from Operations derived from the operation of the Property during the preceding calendar year. The Annual Budget shall be subject to Lender’s
reasonable written approval (each such Annual Budget as so approved in writing by Lender, is herein referred to as an “Approved Annual Budget”). Notwithstanding the foregoing, variances between budgeted and actual
amounts in the Approved Annual Budget may vary by up to the greater of ten percent (10%) or $10,000.00 with respect to any one (1) line item and up to five percent (5%) in the aggregate for the entire Approved Annual Budget without the consent of
Lender. The Annual FF&E Budget shall likewise be subject to Lender’s reasonable written approval (each such Annual FF&E Budget as so approved in writing by Lender, is herein referred to as an “Approved Annual FF&E
Budget”). In the event that Lender objects to a proposed Annual Budget and/or Annual FF&E Budget submitted by Borrower, Lender shall advise Borrower of such objections within ten (10) Business Days after receipt thereof (and
deliver to Borrower a reasonably detailed description of such objections) and Borrower shall promptly revise such Annual Budget and/or Annual FF&E Budget, as applicable, and resubmit the same to Lender. Lender shall advise Borrower of any
objections to such revised Annual Budget and/or Annual FF&E Budget within five (5) Business Days after receipt thereof (and deliver to Borrower a reasonably detailed description of such objections) and Borrower shall promptly revise the same in
accordance with the process described in this subsection until Lender approves the Annual Budget and/or Annual FF&E Budget. Notwithstanding the foregoing, Lender shall be deemed to have consented to any Annual Budget and/or Annual FF&E
Budget if Lender has not provided Borrower with a written notice of denial within ten (10) Business Days of Lender’s receipt of such Annual Budget and/or Annual FF&E Budget so long as Borrower’s request is submitted with the words
“IMMEDIATE RESPONSE REQUIRED, DEEMED APPROVED IF NO RESPONSE RECEIVED WITHIN TEN (10) BUSINESS DAYS” in bold print, all capital letters, in 14 point or larger and prominently displayed at the top of any correspondence and on any envelope
containing the request. Until such time that Lender approves a proposed Annual Budget and/or Annual FF&E Budget (or approval is deemed given), the most recently Approved Annual Budget and/or Annual Approved FF&E Budget shall apply;
provided, that, such Approved Annual Budget shall 

  

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be adjusted to reflect actual increase in utility costs, Taxes, Insurance Premiums and Other Charges. 
  
 (k) In the event that, Borrower must incur an extraordinary
Operating Expense or Capital Expenditure not set forth in the Approved Annual Budget (each an “Extraordinary Expense”), then Borrower shall promptly deliver to Lender a reasonably detailed explanation of such proposed
Extraordinary Expense together with all invoices or other backup reasonably required by Lender to substitute such proposed Extraordinary Expense and the amount thereof; provided, that, in the event Borrower is required to incur
Extraordinary Expenses before Lender’s consent is granted due to emergencies involving imminent danger to person or property Lender’s consent shall not be required with respect to such emergency only provided that Borrower shall promptly
provide Lender with a reasonably detailed description of such expenditures and the emergency following same. No Rents may be used to pay an Extraordinary Expense unless and until Lender has reasonably approved same in writing, which approval will
not by unreasonably withheld or delayed; provided, however, Lender shall be deemed to have consented to such Extraordinary Expense if Lender has not provided Borrower with a written notice of denial within ten (10) Business Days of Lender’s
receipt of such request so long as Borrower’s request is submitted with the words “IMMEDIATE RESPONSE REQUIRED, DEEMED APPROVED IF NO RESPONSE RECEIVED WITHIN TEN (10) BUSINESS DAYS” in bold print, all capital letters, in 14 point or
larger and prominently displayed at the top of any correspondence and on any envelope containing the request. Notwithstanding the foregoing, Lender’s consent shall not be required for the payment of Taxes, Insurance Premiums or utilities with
respect to the Property in excess of the amounts provided for in the Approved Annual Budget for such items provided that Borrower shall provide prompt notice to Lender of such increases following Borrower’s knowledge of such increase.

  
 (l) Any reports, statements or other
information required to be delivered under this Agreement shall be delivered (i) in paper form, (ii) on a diskette, and (iii) if requested by Lender and within the capabilities of Borrower’s data systems without change or modification thereto,
in electronic form and prepared using a Microsoft Word for Windows or WordPerfect for Windows files (which files may be prepared using a spreadsheet program and saved as word processing files). Borrower agrees that Lender may disclose information
regarding the Property and Borrower that is provided to Lender pursuant to this Section 5.1.11 in connection with the Securitization to such parties requesting such information in connection with such Securitization. 
  
 5.1.12 Business and Operations. Borrower will
continue to engage in the businesses presently conducted by it as and to the extent the same are necessary for the ownership, maintenance, management and operation of the Property. Borrower will qualify to do business and will remain in good
standing under the laws of each jurisdiction as and to the extent the same are required for the ownership, maintenance, management and operation of the Property. 
  
 5.1.13 Title to the Property. Borrower will warrant and defend (a) the title to the Property and
every part thereof, subject only to Liens permitted hereunder (including Permitted Encumbrances), and (b) the validity and priority of the Lien of the Mortgage, the Second Mortgage and the Assignment of Leases, subject only to Liens permitted
hereunder (including Permitted Encumbrances), in each case against the claims of all Persons whomsoever. Borrower 

  

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shall reimburse Lender for any losses, costs, damages or expenses (including reasonable attorneys’ fees and court costs) incurred by Lender if an
interest in the Property, other than as permitted hereunder, is claimed by another Person. 
  
 5.1.14 Costs of Enforcement. In the event (a) that the Mortgage and/or the Second Mortgage is foreclosed in whole or in part or
that the Mortgage and/or the Second Mortgage is put into the hands of an attorney for collection, suit, action or foreclosure, (b) of the foreclosure of any mortgage prior to or subsequent to the Mortgage and/or the Second Mortgage in which
proceeding Lender is made a party, or (c) of the bankruptcy, insolvency, rehabilitation or other similar proceeding in respect of Borrower or any direct or indirect owners, members or partners of Borrower or an assignment by Borrower or any direct
or indirect owners, members or partners of Borrower for the benefit of its creditors, Borrower, on behalf of itself and its successors and assigns, agrees that it/they shall be chargeable with and shall pay all costs of collection and defense,
including attorneys’ fees and costs, incurred by Lender or Borrower in connection therewith and in connection with any appellate proceeding or post-judgment action involved therein, together with all required service or use taxes. 

 
 5.1.15 Estoppel Statement. 
  
 (a) After request by Lender from time to time, but no more
frequently than twice in any 12 month period, Borrower shall within ten (10) days furnish Lender with a statement, duly acknowledged and certified, setting forth (i) the original principal amount of the Loan, (ii) the Outstanding Principal Balance,
(iii) the date installments of interest and/or principal were last paid, (iv) any offsets or defenses to the performance of the Obligations, if any, and (v) that the Note, this Agreement, the Mortgage and the other Loan Documents are valid, legal
and binding obligations of Borrower and have not been modified or if modified, giving particulars of such modification. 
  
 (b) Borrower shall deliver to Lender promptly upon request from time to time and subject to the terms of the Leases, tenant estoppel
certificates from each commercial tenant leasing 5,000 square feet or more of space at the Property in form and substance reasonably satisfactory to Lender; provided, that, Borrower shall not be required to deliver such certificates
more frequently than two (2) times in any calendar year. 
  
 (c) Intentionally Omitted. 
  
 5.1.16 Loan Proceeds. Borrower shall use the proceeds of the Loan received by it on the Closing Date only for the purposes set forth in Section 2.1.4 hereof. 
  
 5.1.17 Performance by Borrower. Borrower shall not
enter into or otherwise suffer or permit any amendment, waiver, supplement, termination or other modification of any Loan Document executed and delivered by, or applicable to, Borrower without the prior consent of Lender. 
  
 5.1.18 Confirmation of Representations. Borrower
shall deliver, in connection with any Securitization, (a) one or more Officer’s Certificates certifying as to the accuracy of all representations made by Borrower in the Loan Documents as of the date of the closing of such Securitization in all
relevant jurisdictions, and (b) certificates of the relevant Governmental 

  

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Authorities in all relevant jurisdictions indicating the good standing and qualification of Borrower and Principal as of the date of the Securitization.

  
 5.1.19 No Joint Assessment. Borrower
shall not suffer, permit or initiate the joint assessment of the Property (a) with any other real property constituting a tax lot separate from the Property, and (b) which constitutes real property with any portion of the Property which may be
deemed to constitute personal property, or any other procedure whereby the lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to such real property portion of the Property. 
  
 5.1.20 Leasing Matters. Any Leases with respect to
the Property executed after the date hereof, for more than 5,000 square feet shall be approved by Lender, which approval shall not be unreasonably withheld, delayed or conditioned. Upon request, Borrower shall furnish Lender with executed copies of
all Leases. All renewals of Leases and all proposed Leases shall provide for rental rates comparable to existing local market rates. All proposed Leases shall be on commercially reasonable terms and shall not contain any terms which would materially
affect Lender’s rights under the Loan Documents. All Leases executed after the date hereof shall provide that they are subordinate to the Mortgage and that the lessee agrees to attorn to Lender or any purchaser at a sale by foreclosure or power
of sale. Borrower shall (a) observe and perform the obligations imposed upon the lessor under the Leases in a commercially reasonable manner; (b) enforce and may amend or terminate the terms, covenants and conditions contained in the Leases upon the
part of the lessee thereunder to be observed or performed in a commercially reasonable manner and in a manner not to impair the value of the Property involved except that no termination by Borrower or acceptance of surrender by a tenant of any
Leases of more than 5,000 square feet shall be permitted unless by reason of a tenant default and then only in a commercially reasonable manner to preserve and protect the Property; provided, however, that no such termination or
surrender of any Lease covering more than 5,000 square feet will be permitted without the consent of Lender; (c) not collect any of the rents more than one (1) month in advance (other than security deposits); (d) not execute any other assignment of
lessor’s interest in the Leases or the Rents (except as contemplated by the Loan Documents); (e) not alter, modify or change the terms of any Lease in excess of 5,000 square feet in a manner inconsistent with the provisions of the Loan
Documents; and (f) execute and deliver at the request of Lender all such further assurances, confirmations and assignments in connection with the Leases as Lender shall from time to time reasonably require. Notwithstanding anything to the contrary
contained herein, Borrower shall not enter into a lease of all or substantially all of the Property without Lender’s prior consent. 
  
 5.1.21 Alterations. Borrower shall obtain Lender’s prior consent to any alterations to any Improvements (excluding Decorative
Changes), which consent shall not be unreasonably withheld, delayed or conditioned. Notwithstanding the foregoing, Lender’s consent shall not be required in connection with: any alterations to the Improvements (excluding Decorative Changes)
that will not have a Material Adverse Effect, provided, that, such alterations (a) are made in connection with tenant improvement work performed pursuant to the terms of any Lease executed on or before the date hereof, (b) do not
adversely affect any structural component of any Improvements, any utility or HVAC system contained in any Improvements or the exterior of any building constituting a part of any Improvements and the aggregate cost thereof does not exceed
$1,000,000.00 (the “Threshold Amount”), or (c) are 

  

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performed in connection with Restoration after the occurrence of a Casualty in accordance with the terms and provisions of this Agreement. If the total
unpaid amounts due and payable with respect to alterations to the Improvements at the Property shall at any time exceed the Threshold Amount, Borrower shall promptly deliver to Lender as security for the payment of such amounts and as additional
security for Borrower’s obligations under the Loan Documents any of the following: (i) cash, (ii) U.S. Obligations, (iii) other securities having a rating acceptable to Lender and that the applicable Rating Agencies have confirmed in writing
will not, in and of itself, result in a downgrade, withdrawal or qualification of the initial, or, if higher, then current ratings assigned to any Securities or any class thereof in connection with any Securitization, or (iv) a completion and
performance bond or an irrevocable letter of credit (payable on sight draft only) issued by a financial institution (A) having a rating by S&P of not less than “A-1+” if the term of such bond or letter of credit is no longer than three
(3) months or, if such term is in excess of three (3) months, issued by a financial institution having a rating that is reasonably acceptable to Lender, and (B) that the applicable Rating Agencies have confirmed in writing will not, in and of
itself, result in a downgrade, withdrawal or qualification of the initial, or, if higher, then current ratings assigned to any Securities or any class thereof in connection with any Securitization. Such security shall be in an amount equal to the
excess of the total unpaid amounts with respect to alterations to the Improvements on the Property (other than such amounts to be paid or reimbursed by tenants under the Leases) over the Threshold Amount and upon an Event of Default Lender may apply
such security from time to time at the option of Lender to pay for such alterations. 
  
 5.1.22 Operation of Property. 
  
 (a) Borrower shall cause the Property to be operated, in all material respects, in accordance with the Management Agreement or Replacement Management Agreement, as applicable. In the event that the Management
Agreement expires or is terminated (without limiting any obligation of Borrower to obtain Lender’s consent to any termination or modification of the Management Agreement in accordance with the terms and provisions of this Agreement), Borrower
shall promptly enter into a Replacement Management Agreement with Manager or another Qualified Manager, as applicable. 
  
 (b) Borrower shall: (i) promptly perform and/or observe in all material respects all of the covenants and agreements required to be
performed and observed by Borrower under the Management Agreement and do all things necessary to preserve and to keep unimpaired its material rights thereunder; (ii) promptly notify Lender of any material default under the Management Agreement of
which it is aware; (iii) promptly deliver to Lender a copy of each financial statement, business plan, capital expenditures plan, material notice, material report and estimate received by it under the Management Agreement; and (iv) enforce the
performance and observance of all of the covenants and agreements required to be performed and/or observed by Manager under the Management Agreement, in a commercially reasonable manner. 
  
 Section 5.2 Negative Covenants. From the date hereof until payment and performance in full of all obligations of
Borrower under the Loan Documents or the earlier release of the Lien of the Mortgage and Second Mortgage in accordance with the terms of this Agreement and the 

  

 60 

 
other Loan Documents, Borrower covenants and agrees with Lender that it will not do, directly or indirectly, any of the following: 
  
 5.2.1 Operation of Property. 
  
 (a) Borrower shall not, without Lender’s prior consent
(which consent shall not be unreasonably withheld): (i) subject to Section 9.5 hereof, surrender, terminate or cancel the Management Agreement; provided, that Borrower may, without Lender’s consent, replace the Manager so long as
the replacement manager is a Qualified Manager pursuant to a Replacement Management Agreement; (ii) reduce or consent to the reduction of the term of the Management Agreement; (iii) increase or consent to the increase of the amount of any charges or
fees under the Management Agreement; or (iv) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under, the Management Agreement in any material respect. 
  
 (b) Following the occurrence and during the continuance of
an Event of Default, Borrower shall not exercise any rights, make any decisions, grant any approvals or otherwise take any action under the Management Agreement without the prior consent of Lender, which consent may be withheld in Lender’s sole
discretion, unless failure to do so would cause a default of Borrower’s obligations under the Management Agreement. 
  
 5.2.2 Liens. Borrower shall not create, incur, assume or suffer to exist any Lien on any portion of the Property or permit any such
action to be taken, except: 
  
 (a) Permitted
Encumbrances; 
  
 (b) Liens created by or
permitted pursuant to the Loan Documents; and 
  
 (c) Liens for Taxes or Other Charges not yet due. 
  
 5.2.3 Dissolution. Borrower shall not (a) engage in any dissolution, liquidation, consolidation or merger with or into any other business entity, (b) engage in any business activity not related to the ownership
and operation of the Property, (c) transfer, lease or sell, in one transaction or any combination of transactions, the assets or all or substantially all of the properties or assets of Borrower except to the extent permitted by the Loan Documents,
(d) modify, amend, waive or terminate its organizational documents or its qualification and good standing in any jurisdiction, or (e) cause Principal to (i) dissolve, wind up or liquidate or take any action, or omit to take any action, as a result
of which Principal would be dissolved, wound up or liquidated in whole or in part, or (ii) amend, modify, waive or terminate the certificate of incorporation or bylaws of Principal, in each case, without obtaining the prior consent of Lender.

  
 5.2.4 Change in Business. Borrower
shall not enter into any line of business other than the ownership and operation of the Property, or make any material change in the scope or nature of its business objectives, purposes or operations, or undertake or participate in activities other
than the continuance of its present business. 
  
 5.2.5 Debt Cancellation. Borrower shall not cancel or otherwise forgive or release any claim or debt (other than termination of Leases in accordance herewith) owed to 

  

 61 

 
Borrower by any Person, except for adequate consideration and in the ordinary course of Borrower’s business. 
  
 5.2.6 Zoning. Borrower shall not initiate or consent
to any zoning reclassification of any portion of the Property or seek any variance under any existing zoning ordinance, or use or permit the use of any portion of the Property in any manner that could result in such use becoming a non-conforming use
under any zoning ordinance or any other applicable land use law, rule or regulation, in each case, without the prior consent of Lender. 
  
 5.2.7 No Joint Assessment. Borrower shall not suffer, permit or initiate the joint assessment of all or any portion of the Property
with (a) any other real property constituting a tax lot separate from the Property, or (b) any portion of the 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 the Property. 
  
 5.2.8 Principal Place of Business and Organization. Borrower shall not change its principal place of business set forth in the
introductory paragraph of this Agreement without first giving Lender at least thirty (30) days prior notice. Borrower shall not change the place of its organization as set forth in Section 4.1.28 without the consent of Lender, which consent
shall not be unreasonably withheld. Upon Lender’s request, Borrower shall authorize the filing of additional financing statements, security agreements and other instruments which may be necessary to effectively evidence or perfect Lender’s
security interest in the Property as a result of such change of principal place of business or place of organization. 
  
 5.2.9 ERISA. 
  
 (a) Borrower shall not 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 ERISA. 
  
 (b) Borrower further covenants and agrees to deliver to
Lender such certifications or other evidence from time to time throughout the term of the Loan, as requested by Lender in its sole discretion, that (i) Borrower is not an “employee benefit plan” as defined in Section 3(3) of ERISA, which
is subject to Title I of ERISA, or a “governmental plan” within the meaning of Section 3(32) of ERISA; (ii) Borrower is not subject to any state statute regulating investments of, or fiduciary obligations with respect to, governmental
plans; and (iii) one or more of the following circumstances is true: 
  

	 	(i)	Equity interests in Borrower are publicly offered securities, within the meaning of 29 C.F.R. §2510.3-101(b)(2); 

  

	 	(ii)	Less than twenty-five percent (25%) of each outstanding class of equity interests in Borrower is held by “benefit plan investors” within the meaning of 29 C.F.R.
§2510.3-101(f)(2); or 

  

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	 	(iii)	Borrower qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R. §2510.3-101(c) or (e).

  
 5.2.10 Transfers.

  
 (a) Except for the transfer of the Property
in connection with a release thereof pursuant to Section 2.5, Borrower shall not sell, convey, mortgage, grant, bargain, encumber, pledge, assign, grant options with respect to, or otherwise transfer or dispose of (directly or indirectly,
voluntarily or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) the Property or any part thereof or any legal or beneficial interest therein or permit a Sale or Pledge of an interest in any
Restricted Party (collectively, a “Transfer”), other than (x) pursuant to Leases of space in the Improvements to tenants in accordance with the provisions of Section 5.1.20 hereof, and (y) the disposition of Equipment and other
Personal Property pursuant to the replacement thereof or otherwise in the ordinary course of the operation of the Property, without (i) the prior written consent of Lender and (ii) if a Securitization has occurred or is pending within thirty (30)
days, delivery to Lender of written confirmation from the Rating Agencies that the Transfer will not result in the downgrade, withdrawal or qualification of the then current ratings assigned to any Securities or the proposed rating of any
Securities. 
  
 (b) A Transfer shall include, but
not be limited to: (i) an installment sales agreement wherein Borrower agrees to sell the Property or any part thereof for a price to be paid in installments; (ii) an agreement by Borrower leasing all or a substantial part of the Property for other
than actual occupancy by a space tenant thereunder or a sale, assignment or other transfer of, or the grant of a security interest in, Borrower’s right, title and interest in and to any Leases or any Rents; (iii) if a Restricted Party is a
corporation, any merger, consolidation or Sale or Pledge of such corporation’s stock or the creation or issuance of new stock; (iv) if a Restricted Party is a limited or general partnership or joint venture, any merger or consolidation or the
change, removal, resignation or addition of a general partner or the Sale or Pledge of the partnership interest of any general partner or any profits or proceeds relating to such partnership interest, or the Sale or Pledge of limited partnership
interests or any profits or proceeds relating to such limited partnership interests or the creation or issuance of new limited partnership interests; (v) if a Restricted Party is a limited liability company, any merger or consolidation or the
change, removal, resignation or addition of a managing member or non-member manager (or if no managing member, any member) or the Sale or Pledge of the membership interest of a managing member (or if no managing member, any member) or any profits or
proceeds relating to such membership interest, or the Sale or Pledge of non-managing membership interests or the creation or issuance of new non-managing membership interests; or (vi) if a Restricted Party is a trust or nominee trust, any merger,
consolidation or the Sale or Pledge of the legal or beneficial interest in a Restricted Party or the creation or issuance of new legal or beneficial interests. 
  

(c) Notwithstanding the provisions of this Section 5.2.10, the following transfers shall not be deemed a Transfer: (i) a
transfer by devise or descent or by operation of law upon the death of a member, partner or shareholder of a Restricted Party; (ii) the Sale or Pledge, in one or a series of transactions, of not more than forty-nine percent (49%) of the stock in a
Restricted Party; provided, however, no such transfers shall result in the change of voting control 

  

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in the Restricted Party, and as a condition to each such transfer, Lender shall receive not less than thirty (30) days prior written notice of such proposed
transfer, (iii) the Sale or Pledge, in one or a series of transactions, of not more than forty-nine percent (49%) of the limited partnership interests or non-managing membership interests (as the case may be) in a Restricted Party; provided,
however, as a condition to each such transfer, Lender shall receive not less than thirty (30) days prior written notice of such proposed transfer, (iv) transfers, issuances, pledges and redemptions of stock in Wyndham International, Inc.
(“Wyndham”) (and its successors), so long as (A) Wyndham (or any such successor) is (or is controlled by) a Public Company and (B) the surviving entity is primarily involved in, or has a significant business line involving, the
ownership and operation of real estate similar to the Property, (v) the merger or consolidation of Wyndham (or its successors), provided that the surviving entity of such merger or consolidation is (or is controlled by) (A) a Public Company,
and (B) primarily involved in, or has a significant business line involving, the ownership or operation of real estate similar to the Property, (vi) the granting of easements, cross-easements, agreements, restrictions, reservations and rights in the
ordinary course of business for use, access, water and sewer lines, telephone and telegraph lines, electric lines or other utilities or for other similar purposes, provided that no such easements, agreements, restrictions or rights shall
materially impair the utility and/or operation of the Property or Borrower’s ability to repay the Debt as it becomes due or Borrower’s ability to perform any of its obligations under the Loan Documents, and (vii) transfers of direct or
indirect interests in any Borrower or Principal to Affiliates of Wyndham (or its successors) provided that after such transfers such Borrower and Principal are controlled, directly or indirectly, by Wyndham (or its successors). In addition,
on a one time basis, Wyndham may merge or consolidate with a public or private entity in which the surviving entity is not and is not controlled by a Public Company provided that (a) after such merger, each Borrower and Principal shall
continue to comply with the terms of Section 4.1.30 hereof, (b) such merger or consolidation is to a Qualified Transferee, and (c) the surviving entity is primarily involved in, or has a significant business line involving, the ownership and
operation of real estate similar to the Property. In connection with any transfer or merger permitted under this Section 5.2.10, Borrower shall deliver an Additional Insolvency Opinion if, after such transfer or merger, more than forty-nine
percent (49%) of any direct legal or beneficial interest in Borrower (or in any constituent entity of Borrower that is required to comply with the terms of Section 4.1.30 hereof) is owned by a new or successor entity. Such Additional
Insolvency Opinion shall be reasonably acceptable to (a) Lender, prior to a Securitization or (b) the Rating Agencies, if a Securitization has occurred. Notwithstanding anything to the contrary contained herein, pledges and hypothecations of
indirect equity interests in Borrower shall be permitted provided (i) Wyndham (or its successor) maintains control of, and holds beneficial direct or indirect ownership interests of not less than fifty-one percent (51%) of the membership interests
or partnership interests, as applicable, in, each entity comprising Borrower and (ii) any such pledges or hypothecations are in connection with that certain Credit Agreement and that certain Increasing Rate Note Purchase and Loan Agreement each
between Wyndham (or its successors) and The Chase Manhattan Bank, each dated June 30, 1999, as amended or another credit agreement with an institutional lender or a public bond offering to prepay or refinance in full or in part any such credit
facility which institutional lender or bondholders (or the trustee on their behalf), as applicable shall be making or holding a loan to Wyndham or its successor or its Affiliates (other than Borrower or Principal). A foreclosure sale (or transfer in
lieu thereof) of any such pledge or hypothecation to The Chase Manhattan Bank, or another institutional lender as collateral agent for syndicate 

  

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lenders or another institutional lender, or the bond trustee, shall be permitted provided (i) Lender is given at least sixty (60) days prior written
notice of the proposed foreclosure sale or transfer in lieu thereof; (ii) the transferee is a reputable entity or person, creditworthy, with sufficient financial worth considering any obligations assumed and undertaken with respect to the Loan, as
evidenced by financial statements and other information reasonably requested by Lender; (iii) the Property at all times shall continue to be managed by a Qualified Manager, and (iv) and any and all such entities will comply with all of the
requirements set forth in the Note, this Agreement, the Mortgage and the other Loan Documents. 
  
 (d) Lender shall not be required to demonstrate any actual impairment of its security or any increased risk of default hereunder in order
to declare the Debt immediately due and payable upon a Transfer without Lender’s consent to the extent required hereunder. This provision shall apply to every Transfer regardless of whether voluntary or not, or whether or not Lender has
consented to any previous Transfer. Notwithstanding anything to the contrary contained in this Section 5.2.10, (a) no transfer (whether or not such transfer shall constitute a Transfer) shall be made to any Embargoed Person and (b) in the
event any transfer (whether or not such transfer shall constitute a Transfer) results in any Person owning in excess of forty-nine percent (49%) of the ownership interest in a Restricted Party, Borrower shall, prior to such transfer, deliver an
updated Insolvency Opinion to Lender, which opinion shall be in form, scope and substance reasonably acceptable in all respects to Lender and the Rating Agencies. 
  
 (e) Notwithstanding anything to the contrary contained in this Section 5.2.10, Lender shall not
withhold its consent to a one-time sale, assignment, or other transfer of all of the Property, provided that (i) Lender receives sixty (60) days prior written notice of such transfer, (ii) no Event of Default has occurred and is continuing
and (iii) upon the satisfaction (in the reasonable determination of Lender) of the following matters: 
  
 (A) Borrower or Transferee (defined below) shall pay Lender a transfer fee equal to 1% of the Outstanding Principal Balance at the time of
such transfer and pay any and all reasonable out-of-pocket costs incurred in connection with the Transfer (including, without limitation, Lender’s reasonable counsel fees and disbursements and all recording fees, title insurance premiums and
mortgage and intangible taxes and the fees and expenses of the Rating Agencies in connection with such Transfer); 
  
 (B) The proposed transferee (the “Transferee”) (i) shall be a special purpose bankruptcy remote entity that complies with
all of the requirements of Section 4.1.30 and whose organizational documents are substantially similar to Borrower’s organizational documents, or if not substantially similar, acceptable to the Rating Agencies and (ii) is controlled by a
Qualified Transferee; 
  
 (C) Transferee shall
assume all of the obligations of Borrower under the Note, this Agreement, the Mortgage and the other Loan Documents in a manner reasonably satisfactory to Lender in all respects, including, without limitation, by entering into an assumption
agreement in form and substance 

  

 65 

 
reasonably satisfactory to Lender and delivering such legal opinions as Lender may reasonably require; 
  
 (D) The Property shall be managed by a Qualified Manager
following such transfer; 
  
 (E) The proposed
transfer is permitted pursuant to the Franchise Agreement, if any, or the Franchisor consents to such proposed transfer if Franchisor has the right to consent to such proposed transfer; 
  
 (F) Transferee shall deliver an endorsement to the existing title policy insuring the Mortgage as modified
by the assumption agreement, as a valid first lien on the Property and naming the Transferee as owner of the fee or leasehold estate, as applicable, of the Property, which endorsement shall insure that as of the recording of the assumption
agreement, the Property shall not be subject to any additional exceptions or Liens other than Permitted Encumbrances, or if such endorsement is not available in the applicable jurisdiction, other evidence reasonably satisfactory to Lender confirming
all of the foregoing; 
  
 (G) Transferee shall
deliver to Lender an opinion of counsel from an independent law firm with respect to the substantive nonconsolidation of Transferee and its constituent entities (partners, members or shareholders), which law firm and which opinion shall be
reasonably satisfactory in all respects to (i) Lender, if a Securitization has not occurred, or (ii) Lender and the Rating Agencies, if a Securitization has occurred; 
  
 (H) Transferee shall be a Qualified Transferee; 
  
 (I) Transferee and Transferee’s Principal must be able
to satisfy all the covenants set forth in Sections 4.3 and 5.9 hereof, no Release Default or Event of Default shall otherwise occur as a result of such transfer, and Transferee and Transferee’s Principal shall deliver (A) all
organization documentation reasonably requested by Lender, which shall be reasonably satisfactory to Lender, and (B) all certificates, agreements and covenants reasonably required by Lender; 
  
 (J) Following a Securitization, or at such time as the Loan
is scheduled to be included in a Securitization, the Rating Agencies shall have confirmed that the transfer to Transferee will not cause any downgrade in the ratings assigned to such certificates; 
  
 (K) If the Transferee is not a wholly-owned subsidiary of
Principal, each of the Other Properties shall likewise be transferred to such Transferee or a wholly-owned subsidiary of the new Principal pursuant to the provisions of the Other Loan Agreements; and 
  

 66 

 (L) All requisite approvals from all applicable Governmental Authorities and Persons
required in connection with such Transfer shall have been obtained. 
  
 (f) Notwithstanding anything to the contrary contained in this Section 5.2.10, Lender’s consent shall not be required for the financing of Personal Property and Equipment (“Financing
Leases”) owned or to be purchased by the applicable Borrower that is used in connection with the operation of the Property, provided Lender has received prior written notification of such Borrower’s intent to finance such
Personal Property and/or Equipment, and provided, further, that (i) any such financing is subject to commercially prudent terms and conditions and at a market rate of interest, (ii) the Personal Property and/or Equipment financed is
readily replaceable without material interference or interruption to the operation of the Property as required pursuant to the provisions of this Agreement and the Mortgage and the other Loan Documents, (iii) the aggregate amount of annual debt
service or lease payments under such Financing Leases is at all times less than $100,000.00 per annum, (iv) the documentation for the Financing Leases shall, among other things, provide that Lender shall be given written notice of a default
thereunder and Lender shall be provided with a reasonable opportunity to cure such defaults and (v) the Financing Leases do not create a Lien on the Property other than the Personal Property and/or Equipment financed. 
  
 5.2.11 Intentionally Omitted. 
  
 5.2.12 Franchise Provisions. 
  
 (a) Lender acknowledges and agrees that, as of the Closing
Date, (i) Borrower is indirectly owned in whole by Wyndham; (ii) the Property is operated as a “Wyndham” or “Summerfield Suites” hotel and is not subject to a franchise agreement or other agreement in connection with such
operation other than the Management Agreement. Borrower shall obtain the approval of Lender, which approval shall not be unreasonably withheld or delayed by Lender, before entering into any franchise agreement (the “Franchise
Agreement”) with any franchisor (the “Franchisor”) that provides for, or permits, the operation of the Property under such Franchisor’s brand or “flag”. Any Franchise Agreement must include, among other
things, rights in the Franchisor’s reservation system and a term of not less than the remaining term of the Loan. Borrower shall deliver to Lender any such Franchise Agreement for Lender’s review and approval. 
  
 (b) If Borrower shall enter into any Franchise Agreement,
Lender shall receive within thirty (30) days following the execution of such Franchise Agreement a comfort letter from the Franchisor, in which Franchisor shall agree (i) that Lender shall have the right, but not the obligation, to cure any defaults
under the Franchise Agreement, (ii) to give Lender written notice of, and a reasonable time to cure, any default of Borrower under the Franchise Agreement; (iii) not to assert against Lender any defaults which by their nature are personal to
Borrower and are not curable by Lender; (iv) to allow Lender to change managers of the Property; (v) that, if Lender or its affiliate shall acquire title to the Property, Lender or its affiliate shall have an option to succeed to the interest of
Borrower under the Franchise Agreement (or to be granted a new Franchise Agreement on the same terms as the Franchise Agreement) without payment of any fees to Franchisor (other than nominal, processing fees); 

  

 67 

 
(vi) that the Franchise Agreement will remain in effect during any foreclosure proceedings by Lender provided Lender cures all monetary defaults under the
Franchise Agreement; (vii) not to modify, cancel, surrender or otherwise terminate the Franchise Agreement during the Term without the consent of Lender; and (viii) that if Lender or its Affiliate succeeds to Borrower’s interest under the
Franchise Agreement, Lender may assign its rights therein to any entity which acquires the Property from Lender or its Affiliate (subject to Franchisor’s reasonable approval). The foregoing to the contrary notwithstanding, Lender will not
unreasonably withhold approval of Franchisor’s standard form of “comfort letter”. 
  
 (c) Borrower shall not, and Borrower shall not permit any Affiliate to, modify, cancel, surrender or otherwise terminate the Franchise
Agreement during the Term without the consent of Lender, such consent not to be unreasonably withheld or delayed; provided that, in connection with a cancellation, surrender or termination, such Franchise Agreement shall be replaced with a
substitute franchise agreement reasonably approved by Lender or such other arrangement for the operation of the Property, reasonably approved by Lender. Borrower shall promptly deliver to Lender copies of any notices of default sent or received by
or on behalf of Borrower or any of its Affiliates under the Franchise Agreement. 
  
 (d) Borrower shall at all times that the Debt is outstanding cause the hotel located on the Property to be operated as (i) a
“Wyndham” or a “Summerfield Suites” hotel (or in the name of any successor entity), or (ii) a hotel franchise of a first class, reputable hotel franchise reasonably acceptable to Lender pursuant to a franchise agreement and
management agreement reasonably acceptable to Lender. 
  
 (e) Borrower shall: 
  

	 	(i)	promptly perform and/or observe in all material respects all of the covenants and agreements required to be performed and observed by it under the Franchise Agreement and do all
things necessary to preserve and to keep unimpaired its material rights thereunder; 

  

	 	(ii)	promptly notify Lender of any default under the Franchise Agreement of which it is aware; 

  

	 	(iii)	promptly deliver to Lender a copy of each financial statement, business plan, capital expenditures plan, notice, report and estimate received by it under the Franchise Agreement;

  

	 	(iv)	promptly enforce the performance and observance in all material respects of all of the covenants and agreements required to be performed and/or observed by the franchisor under the
Franchise Agreement; and 

  

	 	(v)	exercise all rights of renewals or extension of the Franchise Agreement (and Borrower hereby appoints Lender as its attorney-in-fact to exercise such options in the name of and on
behalf of Borrower, which power of attorney shall be irrevocable and shall be deemed to be coupled with an interest). 

  

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 ARTICLE 6 
  

INSURANCE; CASUALTY; CONDEMNATION 
  
 Section 6.1 Insurance.  
  
 (a) Borrower shall obtain and maintain, or cause to be maintained, insurance for Borrower and the Property providing at least the
following coverages: 
  

	 	(i)	 comprehensive all risk insurance on the Improvements and the Personal Property, including contingent liability from Operation of Building Laws, Demolition Costs and
Increased Cost of Construction Endorsements, in each case (A) in an amount equal to one hundred percent (100%) of the “Full Replacement Cost,” which for purposes of this Agreement shall mean actual replacement value (exclusive of costs of
excavations, foundations, underground utilities and footings) with a waiver of depreciation, but the amount shall in no event be less than the Outstanding Principal Balance; (B) containing an agreed amount endorsement with respect to the
Improvements and Personal Property waiving all co-insurance provisions; (C) for all such insurance coverage, providing for no deductible in excess of One Hundred Thousand and No/100 Dollars ($100,000); and (D) containing an “Ordinance or Law
Coverage” or “Enforcement” endorsement if any of the Improvements or the use of the Property shall at any time constitute legal non-conforming structures or uses. In addition, Borrower shall obtain: (x) if any portion of the
Improvements is currently or at any time in the future located in a federally designated “special flood hazard area”, flood hazard insurance in an amount equal to the lesser of (1) the Outstanding Principal Balance or (2) the maximum
amount of such insurance available under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended or such greater amount as Lender shall require;
(y) earthquake insurance in amounts and in form and substance satisfactory to Lender in the event the Property is located in an area with a high degree of seismic activity and (z) coastal windstorm insurance in amounts and in form and substance
satisfactory to Lender (and with deductibles of 3% of the insured value) in the event the Property is located in any coastal region, provided that the insurance pursuant to clauses (x), (y) and (z) hereof shall be on terms consistent with the
comprehensive all risk insurance policy required under this subsection (i). Notwithstanding the foregoing, if the insurance coverage required herein is maintained by Wyndham through a blanket policy of insurance and the deductible for such insurance
coverage is greater than $100,000.00, Borrower may satisfy the 

  

 69 

	 	 
deductible requirements herein by delivering to Lender a Letter of Credit in an amount equal to the difference between such deductible, as the same may be
adjusted during the term of this Loan, as extended, and $100,000.00, and Lender shall, in the event of a casualty, apply such security from time to time if requested to do so by Borrower to pay for any Restoration or, if an Event of Default occurs,
such Letter of Credit shall constitute additional collateral for the Loan and Lender may apply such sums as otherwise provided in this Agreement. 

  

	 	(ii)	commercial general liability insurance, including a broad form comprehensive general liability endorsement and coverages against claims for personal injury, bodily injury, death or
property damage occurring upon, in or about the Property, such insurance (A) to be on the so-called “occurrence” form with a combined limit of not less than Two Million and No/100 Dollars ($2,000,000) in the aggregate and One Million and
No/100 Dollars ($1,000,000) per occurrence (and, if on a blanket policy, containing an “Aggregate Per Location” endorsement); (B) to continue at not less than the aforesaid limit until required to be changed by Lender in writing by reason
of changed economic conditions making such protection inadequate; and (C) to cover at least the following hazards: (1) premises and operations; (2) products and completed operations on an “if any” basis; (3) independent contractors; (4)
blanket contractual liability for all legal contracts; and (5) contractual liability covering the indemnities contained in Article 8 of the Mortgage to the extent the same is available; 

  

	 	(iii)	 rental loss and/or business income interruption insurance (A) with loss payable to Lender; (B) covering all risks required to be covered by the insurance provided
for in subsection (i) above; (C) containing an extended period of indemnity endorsement which provides that after the physical loss to the Improvements and Personal Property has been repaired, the continued loss of income will be insured until such
income either returns to the same level it was at prior to the loss, or the expiration of twelve (12) months from the date that the Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that the
policy may expire prior to the end of such period; and (D) in an amount equal to one hundred percent (100%) of the projected Gross Income from Operations for a period of eighteen (18) months from the date of such Casualty (assuming such Casualty had
not occurred) and notwithstanding that the policy may expire at the end of such period. The amount of such business income insurance shall be determined prior to the date hereof and at least once each year thereafter based on Borrower’s
reasonable estimate of the Gross Income from Operations for the 

  

 70 

	 	 
succeeding eighteen (18) month period. Nothing set forth in this Agreement shall be deemed to relieve Borrower of its obligations to pay the obligations
secured by the Loan Documents on the respective dates of payment provided for in the Note and the other Loan Documents except to the extent such amounts are actually paid out of the proceeds of such business income insurance;

  

	 	(iv)	at all times during which structural construction, repairs or alterations are being made with respect to the Improvements, and only if the Property coverage form does not otherwise
apply, (A) owner’s contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the above mentioned commercial general liability insurance policy; and (B) the insurance provided for in
subsection (i) above written in a so-called builder’s risk completed value form (1) on a non-reporting basis, (2) against all risks insured against pursuant to subsection (i) above, (3) including permission to occupy the Property, and (4) with
an agreed amount endorsement waiving co-insurance provisions; 

  

	 	(v)	if the Property includes commercial property, worker’s compensation insurance with respect to any employees of Borrower, as required by any Governmental Authority or Legal
Requirement; 

  

	 	(vi)	comprehensive boiler and machinery insurance, if applicable, in amounts as shall be reasonably required by Lender on terms consistent with the commercial property insurance policy
required under subsection (i) above; 

  

	 	(vii)	umbrella liability insurance in an amount not less than Twenty Million and No/100 Dollars ($20,000,000.00) per occurrence on terms consistent with the commercial general liability
insurance policy required under subsection (ii) above; 

  

	 	(viii)	motor vehicle liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits per occurrence, including umbrella coverage, of
One Million and No/100 Dollars ($1,000,000.00); 

  

	 	(ix)	if the Property is or becomes a legal “non-conforming” use, ordinance or law coverage and insurance coverage to compensate for the cost of demolition or rebuilding of the
undamaged portion of the Property along with any reduced value and the increased cost of construction in amounts as requested by Lender; 

  

 71 

	 	(x)	at all times during the term of the Loan, the commercial property and business income insurance required under Sections 6.1(a)(i) and (iii) above shall cover perils of
foreign terrorism and acts of foreign terrorism and Borrower shall maintain commercial property and business income insurance for loss resulting from perils and acts of foreign terrorism on terms (including amounts) reasonably acceptable to Lender
for so long as such coverage is (A) commercially available and (B) provided that such insurance does not exceed $100,000.00 in the aggregate for the Property and the Other Properties. If the cost of such terrorism insurance exceeds $100,000.00 in
the aggregate for the Property and the Other Properties, Borrower shall obtain the maximum amount of acceptable insurance possible for an amount equal to $100,000.00 in the aggregate for the Property and the Other Properties; and

  

	 	(xi)	upon sixty (60) days’ notice, such other reasonable insurance and in such reasonable amounts as Lender from time to time may reasonably request against such other insurable
hazards which at the time are commonly insured against for properties similar to the Property located in or around the region in which the Property is located. 

  
 (b) All insurance provided for in Section 6.1(a) shall be obtained under valid and enforceable
policies (collectively, the “Policies” or in the singular, the “Policy”), and shall be subject to the approval of Lender as to insurance companies, amounts, deductibles, loss payees and insureds. The Policies shall
be issued by financially sound and responsible insurance companies authorized to do business in the State and having a claims paying ability rating of “A” or better. The Policies described in Section 6.1(a) (other than those
strictly limited to liability protection) shall designate Lender as loss payee. Not less than ten (10) days prior to the expiration dates of the Policies theretofore furnished to Lender, certificates of insurance evidencing the Policies accompanied
by evidence satisfactory to Lender of payment of the premiums due thereunder (the “Insurance Premiums”), shall be delivered by Borrower to Lender. 
  
 (c) Any blanket insurance Policy shall specifically allocate to the Property the amount of coverage from
time to time required hereunder and shall otherwise provide the same protection as would a separate Policy insuring only the Property in compliance with the provisions of Section 6.1(a). 
  
 (d) All Policies provided for or contemplated by Section
6.1(a), except for the Policy referenced in Section 6.1(a)(v), shall name Borrower as the insured and Lender (and its affiliates) as the additional insured, as its interests may appear, and in the case of property damage, boiler and
machinery, flood and earthquake insurance, shall contain a so-called New York standard non-contributing mortgagee clause in favor of Lender providing that the loss thereunder shall be payable to Lender. 
  

 72 

 (e) All Policies provided for in Section 6.1 shall contain clauses or endorsements
to the effect that: 
  

	 	(i)	no act or negligence of Borrower, or anyone acting for Borrower, or of any tenant or other occupant, or failure to comply with the provisions of any Policy, which might otherwise
result in a forfeiture of the insurance or any part thereof, shall in any way affect the validity or enforceability of the insurance insofar as Lender is concerned; 

  

	 	(ii)	the Policies shall not be materially changed (other than to increase the coverage provided thereby) or canceled without at least thirty (30) days’ notice (or ten (10)
days’ notice with respect to non-payment) to Lender and any other party named therein as an additional insured; 

  

	 	(iii)	the issuers thereof shall give notice to Lender if the Policies have not been renewed fifteen (15) days prior to its expiration; and 

  

	 	(iv)	Lender shall not be liable for any Insurance Premiums thereon or subject to any assessments thereunder. 

  
 (f) If at any time Lender is not in receipt of written evidence that all Policies are in full force and
effect, Lender shall give notice (which notice may be oral) thereof to Borrower and Borrower shall within two (2) Business Days of such notice, deliver such written evidence as Lender shall reasonably require that all policies are in full force and
effect. If Borrower does not provide Lender with such evidence that all Policies are in full force and effect within two (2) Business Days of Lender’s notice, Lender shall have the right, without further notice to Borrower, to take such action
as Lender deems necessary to protect its interest in the Property, including, without limitation, the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate. All premiums incurred by Lender in connection with such
action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to Lender upon demand and, until paid, shall be secured by the Mortgage and shall bear interest at the Default Rate. 
  
 Section 6.2 Casualty. If the Property shall be damaged or destroyed,
in whole or in part, by fire or other casualty (a “Casualty”), Borrower shall (a) give prompt notice of such damage to Lender, and (b) promptly commence and diligently prosecute the completion of the Restoration so that the Property
resembles, as nearly as possible, the condition the Property was in immediately prior to such Casualty, with such alterations as may be reasonably approved by Lender and otherwise in accordance with Section 6.4. Borrower shall pay all costs
of such Restoration whether or not such costs are covered by insurance. Lender may, but shall not be obligated to make proof of loss if not made promptly by Borrower. In addition, Lender may approve (not to be unreasonably withheld or delayed) any
settlement with any insurance companies with respect to any Casualty in which the Net Proceeds or the costs of completing the Restoration are equal to or greater than Five Hundred Thousand and No/100 Dollars 

  

 73 

 
($500,000.00) and Borrower shall deliver to Lender all instruments required by Lender to permit such participation. 
  
 Section 6.3 Condemnation. Borrower shall promptly give Lender notice
of the actual or threatened commencement of any proceeding in respect of Condemnation and shall deliver to Lender copies of any and all papers served in connection with such proceedings. Lender may participate in any such proceedings, and Borrower
shall from time to time deliver to Lender all instruments requested by Lender to permit such participation. Borrower shall, at its expense, diligently prosecute any such proceedings, and shall consult with Lender, its attorneys and experts, and
cooperate with them in the carrying on or defense of any such proceedings. Notwithstanding any taking by any public or quasi-public authority through Condemnation or otherwise (including, but not limited to, any transfer made in lieu of or in
anticipation of the exercise of such taking), Borrower shall continue to perform the Obligations at the time and in the manner provided in this Agreement and the other Loan Documents and the Outstanding Principal Balance shall not be reduced until
any Award shall have been actually received and applied by Lender, after the deduction of expenses of collection, to the reduction or discharge of the Obligations. Lender shall not be limited to the interest paid on the Award by the applicable
Governmental Authority but shall be entitled to receive out of the Award interest at the rate or rates provided herein or in the Note. If the Property or any portion thereof is taken by a Governmental Authority, Borrower shall promptly commence and
diligently prosecute Restoration and otherwise comply with the provisions of Section 6.4. If the Property is sold, through foreclosure or otherwise, prior to the receipt by Lender of the Award, Lender shall have the right, whether or not a
deficiency judgment on the Note shall have been sought, recovered or denied, to receive the Award, or a portion thereof sufficient to pay the Debt.  
  
 Section 6.4 Restoration. The following provisions shall apply in connection with the Restoration: 
  
 (a) If the Net Proceeds shall be less than Five Hundred
Thousand and No/100 Dollars ($500,000.00) and the costs of completing the Restoration shall be less than Five Hundred Thousand and No/100 Dollars ($500,000.00), the Net Proceeds will be disbursed by Lender to Borrower upon receipt, provided
that all of the conditions set forth in Section 6.4(b)(i) are met and Borrower delivers to Lender a written undertaking to expeditiously commence and to satisfactorily complete with due diligence the Restoration in accordance with the terms
of this Agreement. 
  
 (b) If the Net Proceeds
are equal to or greater than Five Hundred Thousand and No/100 Dollars ($500,000.00) or the costs of completing the Restoration is equal to or greater than One Million and No/100 Dollars ($1,000,000.00), the Net Proceeds will be held by Lender and
Lender shall make the Net Proceeds available for the Restoration in accordance with the provisions of this Section 6.4. The term “Net Proceeds” for purposes of this Section 6.4 shall mean: (i) the net amount of all
insurance proceeds received by Lender pursuant to Section 6.1 (a)(i), (iv), (vi), (ix) and (x) as a result of such damage or destruction, after deduction of its reasonable costs and expenses (including, but not
limited to, reasonable counsel fees), if any, in collecting same (“Insurance Proceeds”), or (ii) the net amount of the Award, after deduction of Lender’s reasonable costs and expenses (including, but not limited to, reasonable

  

 74 

 
counsel costs and fees), if any, in collecting same (“Condemnation Proceeds”), whichever the case may be. 
  

	 	(i)	The Net Proceeds shall be made available to Borrower for Restoration upon the approval of Lender in its sole discretion that the following conditions are met:

  
 (A) no Event of Default shall
have occurred and be continuing; 
  
 (B) (1) in
the event the Net Proceeds are Insurance Proceeds, less than twenty-five percent (25%) of the total floor area of the Improvements on the Property has been damaged, destroyed or rendered unusable as a result of such Casualty, or (2) in the event the
Net Proceeds are Condemnation Proceeds, less than ten percent (10%) of the land constituting the Property is taken, and such land is located along the perimeter or periphery of the Property, and no material portion of the Improvements is located on
such land; 
  
 (C) Borrower shall commence
Restoration as soon as reasonably practicable (but in no event later than sixty (60) days after such Casualty or Condemnation, whichever the case may be, occurs) and shall diligently pursue the same to satisfactory completion (it being agreed that
the development of Building Plans shall constitute commencement of the Restoration); 
  
 (D) Lender shall be satisfied that any operating deficits, including all scheduled payments of principal and interest under the Note,
which will be incurred with respect to the Property as a result of the occurrence of any such Casualty or Condemnation, whichever the case may be, will be covered out of (1) the Net Proceeds, (2) the insurance coverage referred to in Section
6.1(a)(iii), if applicable, or (3) by other funds of Borrower; 
  
 (E) Lender shall be satisfied that Restoration will be completed on or before the earliest to occur of (1) three (3) months prior to the Maturity Date as the same is extended pursuant to Section 2.7 hereof (and
if necessary to satisfy this requirement, the period set forth in Section 2.7 during which Borrower may exercise any option to extend the term of the Loan shall be extended to permit Borrower to exercise such extension option, but in no event
more than twelve (12) months prior to the then Maturity Date, (2) such time as may be required under applicable Legal Requirements, or (3) the expiration of the insurance coverage referred to in Section 6.1(a)(iii) unless Borrower has
deposited with Lender prior to the commencement of the Restoration sums sufficient after the expiration of such insurance to (x) operate the Property in a manner consistent with the manner in which the Property was operated immediately prior to such
Casualty or Condemnation and (y) pay all sums as they become due under the Loan in a timely manner; 
  

 75 

 (F) the Property and the use thereof after Restoration will be in compliance with and
permitted under all applicable Legal Requirements; 
  
 (G) Restoration shall be done and completed by Borrower in an expeditious and diligent fashion and in compliance with all applicable Legal Requirements; 
  
 (H) such Casualty or Condemnation, as applicable, does not result in the loss of access to the Property or
the related Improvements; 
  
 (I) upon completion
of the Restoration, the projected Net Operating Income for the following twelve (12) month period as reasonably estimated by Lender, shall be sufficient to achieve a Debt Service Coverage Ratio of at least 1.50 to 1.00 (and for purposes of this
clause (I) only, the Debt Service Coverage Ratio shall be calculated at the interest rate computed in accordance with the provisions of this Agreement at a deemed annual rate of 8.20%); 
  
 (J) Borrower shall deliver, or cause to be delivered, to Lender a signed detailed budget approved in writing
by Borrower’s architect or engineer stating the entire cost of completing the Restoration; and 
  
 (K) the Net Proceeds together with any cash or cash equivalent deposited by Borrower with Lender are sufficient in Lender’s
reasonable discretion to cover the cost of Restoration. 
  

	 	(ii)	 The Net Proceeds shall be paid directly to Lender for deposit in an interest-bearing account and, until disbursed in accordance with the provisions of this
Section 6.4(b), shall constitute additional security for the Debt and the Other Obligations. The Net Proceeds shall be disbursed by Lender to, or as directed by, Borrower from time to time during the course of Restoration, upon receipt of
evidence satisfactory to Lender that (A) all materials installed and work and labor performed (except to the extent that they are to be paid for out of the requested disbursement) in connection with Restoration have been paid for in full, and (B)
there exist no notices of pendency, stop orders, mechanic’s or materialman’s liens or notices of intention to file same, or any other liens or encumbrances of any nature whatsoever on the Property which have not either been fully bonded to
the satisfaction of Lender and discharged of record or in the alternative fully insured to the satisfaction of Lender by the Title Company; provided, however, Lender shall disburse to, or as directed by, Borrower up to ten percent
(10%) of the Net Proceeds received by Lender to fund deposits to contractors, subcontractors and/or materialmen when necessary, to secure timely performance of the Restoration, due to the occurrence of a catastrophic event such as a hurricane or
earthquake, upon receipt of evidence satisfactory to Lender that 

  

 76 

	 	 
such deposits are required to be paid. Notwithstanding the foregoing, Lender shall have no obligation under this paragraph unless and until Net Proceeds have
been received by it and Borrower has complied with the provisions of the preceding sentence. 

  

	 	(iii)	All plans and specifications required in connection with the Restoration shall be subject to prior review and reasonable acceptance in all respects by Lender and by an independent
consulting engineer selected by Lender (the “Casualty Consultant”). In connection with the delivery of the plans and specifications to Lender and/or Casualty Consultant by Borrower, if Borrower marks such delivery with a legend
marked in not less than fourteen (14) point bold face type, underlined, in all capital letters “ATTACHED PLANS AND SPECIFICATIONS DEEMED APPROVED IF NO RESPONSE WITHIN FIFTEEN (15) BUSINESS DAYS”, and Lender and/or the Casualty Consultant
fails to respond to the delivery of such plans and specifications within such fifteen (15) Business Day period, Lender shall be deemed to have approved such Plans and Specifications. Lender shall have the use of the plans and specifications and all
permits, licenses and approvals required or obtained in connection with the Restoration. The identity of the contractors, subcontractors and materialmen engaged in the Restoration, as well as the contracts under which they have been engaged, shall
be subject to prior review and reasonable acceptance by Lender and the Casualty Consultant. All reasonable costs and expenses incurred by Lender in connection with making the Net Proceeds available for Restoration including, without limitation,
reasonable counsel fees and disbursements and the reasonable Casualty Consultant’s fees, shall be paid by Borrower. 

  

	 	(iv)	 In no event shall Lender be obligated to make disbursements of the Net Proceeds in excess of an amount equal to the costs actually incurred from time to time for
work in place as part of the Restoration, as certified by the Casualty Consultant, minus the Casualty Retainage. The term “Casualty Retainage” shall mean, as to each contractor, subcontractor or materialman engaged in the
Restoration, an amount equal to ten percent (10%) of the costs actually incurred for work in place as part of the Restoration, as certified by the Casualty Consultant, until Restoration has been fifty percent (50%) completed, at which point no
additional Retainage shall be required (i.e., upon completion of the Restoration the Retainage shall equal 5% of the cost of the work). The Casualty Retainage shall in no event, and notwithstanding anything to the contrary set forth above in this
Section 6.4(b), be less than the amount actually held back by Borrower from 

  

 77 

	 	 
contractors, subcontractors and materialmen engaged in the Restoration. The Casualty Retainage shall not be released until the Casualty Consultant certifies
to Lender that Restoration has been completed in accordance with the provisions of this Section 6.4(b) and that all approvals necessary for the re-occupancy and use of the Property have been obtained from all appropriate Governmental
Authorities, and Lender receives evidence reasonably satisfactory to Lender that the costs of Restoration have been paid in full or will be paid in full out of the Casualty Retainage; provided, however, that Lender will release the portion of
the Casualty Retainage being held with respect to any contractor, subcontractor or materialman engaged in the Restoration as of the date upon which the Casualty Consultant certifies to Lender that the contractor, subcontractor or materialman has
satisfactorily completed all work and has supplied all materials in accordance with the provisions of the contractor’s, subcontractor’s or materialman’s contract, the contractor, subcontractor or materialman delivers the lien waivers
and evidence of payment in full of all sums due to the contractor, subcontractor or materialman as may be reasonably requested by Lender or by the Title Company, and, provided that the State in which the Property is located is a jurisdiction in
which the priority of the Lien of the Mortgage will not be affected by intervening mechanic’s liens, the Lender receives an update to the Title Insurance Policy indicating the continued priority of the Lien of the Mortgage. If required by
Lender, the release of any such portion of the Casualty Retainage shall be approved by the surety company, if any, which has issued a payment or performance bond with respect to the contractor, subcontractor or materialman.

  

	 	(v)	Lender shall not be obligated to make disbursements of the Net Proceeds more frequently than once every calendar month. 

  

	 	(vi)	If at any time the Net Proceeds or the undisbursed balance thereof shall not, in the opinion of Lender in consultation with the Casualty Consultant, be sufficient to pay in full the
balance of the costs which are reasonably estimated by the Casualty Consultant to be incurred in connection with the completion of the Restoration, Borrower shall deposit the deficiency (the “Net Proceeds Deficiency”) with Lender
before any further disbursement of the Net Proceeds shall be made. The Net Proceeds Deficiency deposited with Lender shall be held by Lender and shall be disbursed for costs actually incurred in connection with the Restoration on the same conditions
applicable to the disbursement of the Net Proceeds, and until so disbursed pursuant to this Section 6.4(b) shall constitute additional security for the Debt and the Other Obligations. 

  

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	 	(vii)	The excess, if any, of the Net Proceeds and the remaining balance, if any, of the Net Proceeds Deficiency deposited with Lender after the Casualty Consultant certifies to Lender
that Restoration has been completed in accordance with the provisions of this Section 6.4(b), and the receipt by Lender of evidence satisfactory to Lender that all costs incurred in connection with the Restoration have been paid in full,
shall be remitted by Lender to Borrower, provided no Event of Default shall have occurred and shall be continuing. 

  
 (c) All Net Proceeds not required (i) to be made available for Restoration, or (ii) to be returned to Borrower as excess Net Proceeds
pursuant to Section 6.4(b)(vii) may be retained and applied by Lender in accordance with Section 2.4.2 hereof toward the payment of the Outstanding Principal Balance whether or not then due and payable in such order, priority and
proportions as Lender in its sole discretion shall deem proper, or, in the sole discretion of Lender, the same may be paid, either in whole or in part, to Borrower for such purposes as Lender shall approve, in its sole discretion. 
  
 (d) In the event of foreclosure of the Mortgage, or other
transfer of title to the Property in extinguishment in whole or in part of the Debt, all right, title and interest of Borrower in and to the Policies that are not blanket Policies then in force concerning the Property and all proceeds payable
thereunder shall thereupon vest in the purchaser at such foreclosure or Lender or other transferee in the event of such other transfer of title. 
  
 (e) Intentionally Omitted. 
  
 ARTICLE 7 
  
 RESERVE FUNDS 
  
 Section 7.1 Intentionally Omitted. 
  
 Section 7.2 Tax and Insurance Escrow Funds. On the date hereof, Borrower shall deposit with Lender $146,666.67 on account of the Taxes next coming due and $33,384.76 on account of the Insurance Premiums next
coming due. Additionally, Borrower shall pay to Lender on each Payment Date (a) one-twelfth of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all
such Taxes at least thirty (30) days prior to their respective due dates, and (b) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the Policies upon the expiration thereof in
order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies (the foregoing amounts deposited with Lender on the date hereof and in clauses (a) and (b) above
are hereinafter called the “Tax and Insurance Escrow Funds”). The Tax and Insurance Escrow Funds and the payment of the monthly Debt Service, shall be added together and shall be paid as an aggregate sum by Borrower to Lender.
Lender will apply the Tax and Insurance Escrow Funds to payments of Taxes and Insurance Premiums required to be made by Borrower pursuant to Section 5.1.2 hereof and under the Mortgage. In making any 

  

 79 

 
payment relating to the Tax and Insurance Escrow Funds, Lender may do so according to any bill, statement or estimate procured from the appropriate public
office (with respect to Taxes) or insurer or agent (with respect to Insurance Premiums), without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim
thereof. If the amount of the Tax and Insurance Escrow Funds shall exceed the amounts due for Taxes and Insurance Premiums pursuant to Section 5.1.2 hereof, Lender shall, following written request by Borrower, promptly return any excess to
Borrower. Any amount remaining in the Tax and Insurance Escrow Funds after the Debt has been paid in full shall be returned to Borrower. In allocating such excess, Lender may deal with the Person shown on the records of Lender to be the owner of the
Property. If at any time Lender reasonably determines that the Tax and Insurance Escrow Funds are not or will not be sufficient to pay Taxes and Insurance Premiums by the dates set forth in (a) and (b) above, Lender shall notify Borrower of such
determination and Borrower shall increase its monthly payments to Lender by the amount that Lender estimates is sufficient to make up the deficiency at least thirty (30) days prior to the due date of the Taxes and/or thirty (30) days prior to
expiration of the Policies, as the case may be. 
  
 Section 7.3
FF&E Reserve. 
  
 7.3.1 FF&E
Reserve Funds. Borrower shall deposit with Lender on the Closing Date one-twelfth of the amount of the Approved FF&E Budget (the “FF&E Reserve Deposit”). The amount of the FF&E Reserve Deposit shall be recalculated
annually during the term of the Loan, as of January 1 of each year (or as soon thereafter as Gross Income from Operations for the preceding year shall be determined to Lender’s reasonable satisfaction) such that the FF&E Reserve Deposit
shall be equal to four (4%) percent of the prior year’s Gross Income from Operations divided by twelve (12). Amounts so deposited shall hereinafter be referred to as Borrower’s “FF&E Reserve Funds” and the account in
which such amounts are held shall hereinafter be referred to as Borrower’s “FF&E Reserve Account.” Within thirty (30) days following the end of each calendar quarter, Borrower shall provide to Lender a preliminary report
with respect to the expenditures made by or on behalf of Borrower with respect to the Property for FF&E during such calendar quarter. In the event that the lesser of (a) the Approved Annual FF&E Budget for such calendar quarter (provided
such Approved Annual FF&E Budget is not less than four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, exceeds the actual expenditures made
by Borrower for FF&E for such quarter, Borrower shall deposit an amount equal to any such difference in the FF&E Reserve Account to be held as FF&E Reserve Funds to be disbursed pursuant to the provisions of this Section 7.3.
Notwithstanding the foregoing, the amount of any such deposit required to be made by Borrower shall be reduced by the amount of any actual expenditure made by Borrower for any FF&E completed prior to the calendar quarter in which such FF&E
was scheduled to be made pursuant to the Approved Annual FF&E Budget. If the actual expenditures made by Borrower for FF&E exceeds the lesser of (x) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual
FF&E Budget is not less than four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, Lender shall reimburse Borrower for such excess to the
extent that funds are available from the FF&E Reserve Account within fifteen (15) days from Borrower’s request. To the extent there are not sufficient funds in the FF&E Reserve Account to reimburse 

  

 80 

 
Borrower for any excess actual expenditures during such calendar quarter, such excess expenditures shall be added to the actual expenditures for the next
calendar quarter in the determination of any amounts required to be deposited in the FF&E Reserve Account for such calendar quarter. In lieu of making any required deposits to the FF&E Reserve Account (other than the FF&E Reserve
Deposit), Borrower may deliver to Lender a Letter of Credit in an amount equal to the amount that is required to be deposited into the FF&E Reserve Account. Such Letter of Credit shall constitute additional collateral for the Loan and Lender
shall have the right to draw down upon such Letter of Credit and apply the proceeds thereof for the purposes set forth in the Approved FF&E Budget if Borrower fails to do so within a reasonable time after notice from Lender, or Lender may apply
such sums as otherwise provided in this Agreement following an Event of Default. All earnings or interest on the FF&E Reserve Funds shall be and become part of the FF&E Reserve Funds and shall be disbursed as provided in this Section
7.3. 
  
 7.3.2 Disbursements from FF&E
Reserve Account. Lender shall make disbursements from the FF&E Reserve Account as provided in Section 7.3.1 following request by Borrower, and, if required by Lender for disbursements in excess of $100,000.00 for a single item, lien
waivers and releases from all parties furnishing materials and/or services in connection with the requested payment. Lender may require an inspection of the Property at Borrower’s expense prior to making a monthly disbursement in order to
verify completion of replacements and repairs of items in excess of $100,000.00 for which reimbursement is sought. 
  
 7.3.3 Balance in the FF&E Account. The insufficiency of any balance in the FF&E Reserve Account shall not relieve Borrower
from its obligation to fulfill all preservation and maintenance covenants in the Loan Documents. 
  
 Section 7.4 Intentionally Omitted. 
  
 Section 7.5 Debt Service Reserve. 
  
 7.5.1 Debt Service Reserve Funds. Borrower shall deposit with Lender on the Closing Date the sum of $118,900.00 (the “Debt
Service Reserve”). Amounts so deposited shall hereinafter be referred to as the “Debt Service Reserve Funds” and the account in which such amounts are held shall hereinafter be referred to as the “Debt Service
Reserve Account.” The Debt Service Reserve will be available for use by Borrower in the event that Net Cash Flow from the Property for any month shall be less than Debt Service for such month. In lieu of making any required deposits to the
Debt Service Reserve Account, Borrower may deliver to Lender a Letter of Credit in an amount equal to the amount that is required to be deposited into the Debt Service Reserve Account. All earnings or interest on the Debt Service Reserve Fund shall
be and become part of such Debt Service Reserve Fund and shall be disbursed as provided in this Section 7.5. 
  
 In the event Net Cash Flow equals or exceeds $8,000,000.00 for the preceding twelve (12) consecutive month period, the Debt Service
Reserve Funds will be released to Borrower following Borrower’s written request therefor. 
  
 7.5.2 Disbursements from Debt Service Reserve Account. Provided no Release Default or Event of Default exists, Lender shall make
disbursements from the Debt Service 

  

 81 

 
Reserve Account as requested by Borrower to the extent such funds are available, no more frequently than once in any thirty (30) day period in the event that
Net Cash Flow is less than Debt Service for such month. 
  
 7.5.3 Balance in the Debt Service Account. The insufficiency of any balance in the Debt Service Reserve Account shall not relieve Borrower from its obligation to pay the Monthly Interest Payment when due
hereunder. 
  
 Section 7.6 Reserve Funds, Generally.

  
 (a) Borrower grants to Lender a
first-priority perfected security interest in all of the Reserve Funds and any and all monies now or hereafter deposited in each Reserve Fund as additional security for the Obligations. Until expended or applied in accordance herewith, the Reserve
Funds shall constitute additional security for payment of the Obligations. Upon the occurrence of an Event of Default, Lender may, in addition to any and all other rights and remedies available to Lender, apply any sums then present in any or all of
the Reserve Funds to the reduction of the Outstanding Principal Balance in any order in its sole discretion. The Reserve Funds shall not constitute trust funds and may be commingled with other monies held by Lender. 
  
 (b) Borrower shall not, without obtaining the prior consent
of Lender, further pledge, assign or grant any security interest in any Reserve Fund or the monies deposited therein or permit any lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements, except those
naming Lender as the secured party, to be filed with respect thereto. 
  
 (c) The Reserve Funds shall be held in an Eligible Account and shall bear interest at a money market rate selected by Lender. All interest or other earnings on a Reserve Fund shall be added to and become a part of
such Reserve Fund and shall be disbursed in the same manner as other monies deposited in such Reserve Fund. Borrower shall have the right to direct Lender to invest sums on deposit in the Eligible Account in Permitted Investments
provided (a) such investments are then regularly offered by Lender for accounts of this size, category and type, (b) such investments are permitted by applicable federal, state and local rules, regulations and laws, (c) the maturity date of
the Permitted Investment is not later than the date on which the applicable Reserve Funds are required for payment of an obligation for which such Reserve Fund was created, and (d) no Event of Default shall have occurred and be continuing. Borrower
shall be responsible for payment of any federal, state or local income or other tax applicable to the interest or income earned on the Reserve Funds. No other investments of the sums on deposit in the Reserve Funds shall be permitted except as set
forth in this Section 7.5. Borrower shall bear all reasonable costs associated with the investment of the sums in the account in Permitted Investments. Such costs shall be deducted from the income or earnings on such investment, if any, and
to the extent such income or earnings shall not be sufficient to pay such costs, such costs shall be paid by Borrower promptly on demand by Lender. Lender shall have no liability for the rate of return earned or losses incurred on the investment of
the sums in Permitted Investments. 
  

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 (d) Borrower shall indemnify Lender and hold Lender harmless from and against any and all
actions, suits, claims, demands, liabilities, losses, damages, obligations and costs and expenses (including litigation costs and reasonable attorneys fees and expenses) arising from or in any way connected with the Reserve Funds or the performance
of the obligations for which the Reserve Funds were established. Borrower shall assign to Lender all rights and claims Borrower may have against all Persons supplying labor, materials or other services which are to be paid from or secured by the
Reserve Funds; provided, however, that Lender may not pursue any such right or claim unless an Event of Default has occurred and remains uncured. 
  

(e) After payment in full of all sums evidenced by the Note and secured by the Mortgage and release or assignment by Lender of the lien
of the Mortgage, Lender shall disburse to Borrower all amounts remaining in the Reserves. 
  
 ARTICLE 8  
  
 DEFAULTS 
  
 Section 8.1 Event of
Default. 
  
 (a) Each of the following events
shall constitute an event of default hereunder (an “Event of Default”): 
  

	 	(i)	if any portion of the Debt is not paid when due (subject to Borrower having deposited with Lender in accordance with Section 2.6.4 sums sufficient to pay such amounts when
due); 

  

	 	(ii)	intentionally omitted; 

  

	 	(iii)	if any of the Taxes are not paid when the same are due and payable or the Other Charges are not paid prior to delinquency; 

  

	 	(iv)	if the Policies are not kept in full force and effect, or if satisfactory evidence of the insurance coverage required hereunder or any other Loan Document is not delivered to Lender
within ten (10) days of request; 

  

	 	(v)	if any Transfer is made in violation of the terms of this Agreement or any other Loan Document; 

  

	 	(vi)	if any representation or warranty made by, or on behalf of, Borrower or any other Significant Party herein or in any other Loan Document, or in any report, certificate, Financial
Statement or other instrument, agreement or document furnished to Lender shall have been false or misleading in any material respect as of the date the representation or warranty was made; 

  

	 	(vii)	if any Significant Party shall make an assignment for the benefit of creditors; 

  

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	 	(viii)	if a receiver, liquidator or trustee shall be appointed for any Significant Party, or if any Significant Party shall be adjudicated a bankrupt or insolvent, or if any petition for
bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by or against, consented to, or acquiesced in by, any Significant Party, or if any proceeding for the dissolution or
liquidation of any Significant Party shall be instituted; provided, however, if such appointment, adjudication, petition or proceeding was involuntary and not consented to by such Significant Party, upon the same not being discharged,
stayed or dismissed within ninety (90) days; 

  

	 	(ix)	if Borrower attempts to assign its rights under this Agreement or any of the other Loan Documents or any interest herein or therein in contravention of the Loan Documents;

  

	 	(x)	if Borrower breaches any of its respective negative covenants contained in Section 5.2 or Section 5.1.11 (other than those covenants contained in Section 5.2
which are otherwise expressly provided for in this Section 8.1 hereof) and such breach is not cured after ten (10) days notice from Lender or if Borrower breaches any covenant contained in Section 4.1.30; 

  

	 	(xi)	if any of the assumptions contained in the Insolvency Opinion delivered to Lender in connection with the Loan, or in the Additional Insolvency Opinion delivered subsequent to the
closing of the Loan, is or shall become untrue in any material respect unless such matter is cured in a timely manner without any adverse consequences to the Loan or to Lender; 

  

	 	(xii)	if a material default has occurred and continues beyond any applicable cure period under the Management Agreement (or any Replacement Management Agreement) and if such default
permits the Manager thereunder to terminate or cancel the Management Agreement (or any Replacement Management Agreement) and Borrower fails to replace Manager with a Qualified Manager; 

  

	 	(xiii)	if at any time an “Event of Default” shall occur under and as defined in any one or more of the Other Borrower Loan Documents; 

  

	 	(xiv)	if at any time a default shall occur and continue beyond the expiration of applicable notice and cure periods under any Junior Lender Security Document; 

  

	 	(xv)	 if Borrower shall continue to be in Default under any of the other terms, covenants or conditions of this Agreement not specified in 

  

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subsections (i) to (xii) above, for ten (10) Business Days after notice to Borrower from Lender, in the case of any Default which can be cured by the payment
of a sum of money, or for thirty (30) days after notice from Lender in the case of any other Default; provided, however, that if such non-monetary Default is susceptible of cure but cannot reasonably be cured within such thirty (30)
day period and provided further that Borrower shall have commenced to cure such Default within such thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be
extended for such time as is reasonably necessary for Borrower in the exercise of due diligence to cure such Default, such additional period not to exceed 180 days; 

  

	 	(xvi)	Intentionally Omitted. 

  

	 	(xvii)	if at any time Borrower shall fail to cause all Rents to be paid directly to the Property Account as provided herein and in the Cash Management Agreement and the Property Account
Agreement; or 

  

	 	(xviii)	if there shall be default under any of the other Loan Documents beyond any applicable cure periods contained in such documents, whether as to Borrower or the Property, or if any
other such event shall occur or condition shall exist, if the effect of such event or condition is to accelerate the maturity of any portion of the Debt or to permit Lender to accelerate the maturity of all or any portion of the Debt.

  
 (b) Upon the occurrence of an
Event of Default (other than an Event of Default described in clauses (vi), (vii) or (viii) above) and at any time thereafter, in addition to any other rights or remedies available to it pursuant to this Agreement and the other Loan Documents or at
law or in equity, Lender may take such action, without notice or demand, that Lender deems advisable to protect and enforce its rights against Borrower and in and to the Property, including, without limitation, declaring the Obligations to be
immediately due and payable, and Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower and the Property, including, without limitation, all rights or remedies available at law or in
equity; and upon any Event of Default described in clauses (vi), (vii) or (viii) above, the Debt and all Other Obligations of Borrower hereunder and under the other Loan Documents shall immediately and automatically become due and payable, without
notice or demand, and Borrower hereby expressly waives any such notice or demand, anything contained herein or in any other Loan Document to the contrary notwithstanding. 
  
 Section 8.2 Remedies. 
  
 (a) Upon the occurrence of an Event of Default, all or any one or more of the rights, powers, privileges and other remedies available to
Lender against Borrower under this Agreement or any of the other Loan Documents executed and delivered by, or applicable to, 

  

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Borrower or at law or in equity may be exercised by Lender at any time and from time to time, whether or not all or any of the Debt shall be declared due and
payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action for the enforcement of its rights and remedies under any of the Loan Documents. Any such actions taken by Lender shall be cumulative and concurrent
and may be pursued independently, singularly, successively, together or otherwise, at such time and in such order as Lender may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the
other rights and remedies of Lender permitted by law, equity or contract or as set forth herein or in the other Loan Documents. Without limiting the generality of the foregoing, Borrower agrees that if an Event of Default is continuing (i) Lender
shall not be subject to any “one action” or “election of remedies” law or rule, and (ii) all liens and other rights, remedies or privileges provided to Lender shall remain in full force and effect until Lender has exhausted all
of its remedies against the Property and the Mortgage has been foreclosed, sold and/or otherwise realized upon in satisfaction of the Debt or the Obligations have been paid in full. 
  
 (b) Lender shall have the right from time to time to sever the Note and the other Loan Documents into one or
more separate notes, mortgages and other security documents (the “Severed Loan Documents”) in such denominations as Lender shall determine in its sole discretion for purposes of evidencing and enforcing its rights and remedies
provided hereunder. Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and such other documents as Lender shall request in order to effect the severance described in the
preceding sentence, all in form and substance reasonably satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead to make and execute all
documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue thereof; provided, however, Lender shall not make or execute any such documents under such power until
three (3) days after notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under such power. Borrower shall not be obligated to pay any costs or expenses incurred in connection with the preparation, execution,
recording or filing of the Severed Loan Documents. Further, the Severed Loan Documents shall not contain any representations, warranties or covenants not contained in the Loan Documents and any such representations and warranties contained in the
Severed Loan Documents will be given by Borrower only as of the Closing Date. 
  
 (c) Lender shall have the right from time to time to partially foreclose the Mortgage in any manner and for any amounts secured by the Mortgage then due and payable as determined by Lender in its sole discretion,
including the following circumstances: (i) in the event Borrower defaults beyond any applicable grace period in the payment of one or more scheduled payments of principal and/or interest, Lender may foreclose the Mortgage to recover such delinquent
payments, or (ii) in the event Lender elects to accelerate less than the entire Outstanding Principal Balance, Lender may foreclose the Mortgage to recover so much of the Debt as Lender may accelerate and such other sums secured by the Mortgage as
Lender may elect. Notwithstanding one or more partial foreclosures, the Property shall remain subject to the Mortgage to secure payment of sums secured by the Mortgage and not previously recovered. 
  
 (d) Any amounts recovered from the Property or any other
collateral for the Loan after an Event of Default may be applied by Lender toward the payment of any interest 

  

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and/or principal of the Loan and/or any other amounts due under the Loan Documents in such order, priority and proportions as Lender in its sole discretion
shall determine. 
  
 (e) Without limiting the
generality of the foregoing or otherwise impairing or 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, Borrower agrees that if an Event of Default has
occurred and is continuing Lender shall have the right to immediately draw down in full upon any Letter of Credit delivered by, or on behalf of Borrower pursuant to the terms of this Agreement or any of the other Loan Documents, and apply the
proceeds of such draw towards the payment of any interest and/or principal of the Loan and/or any other amounts due under the Loan Documents in such order, priority and proportions as Lender in its sole discretion shall determine. 
  
 (f) Remedies Cumulative; Waivers. The rights, powers
and remedies of Lender under this Agreement shall be cumulative and not exclusive of any other right, power or remedy which Lender may have against Borrower pursuant to this Agreement or the other Loan Documents, or existing at law or in equity or
otherwise. Lender’s rights, powers and remedies may be pursued singularly, concurrently or otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion. No delay or omission to exercise any remedy, right or
power accruing upon an Event of Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient. A waiver
of one Default or Event of Default with respect to Borrower shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any remedy, right or power consequent thereon. 
  
 ARTICLE 9 
  
 SPECIAL PROVISIONS 
  
 Section 9.1 Sale of Note and Securitization. Borrower acknowledges and agrees that Lender may sell all or any portion of the Loan and the Loan
Documents, or issue one or more participations therein, or consummate one or more private or public securitizations of rated single- or multi-class securities (the “Securities”) secured by or evidencing ownership interests in all or
any portion of the Loan and the Loan Documents or a pool of assets that include the Loan and the Loan Documents (such sales, participations and/or securitizations, collectively, a “Securitization”). At the request of Lender, and to
the extent not already required to be provided by Borrower under this Agreement, Borrower shall use reasonable efforts to provide information not in the possession of Lender or which may be reasonably required by Lender in order to satisfy the
market standards to which Lender customarily adheres or which may be reasonably required by prospective investors and/or the Rating Agencies in connection with any such Securitization including, without limitation, to: 
  
 (a) provide additional and/or updated Provided Information,
together with appropriate verification and/or consents related to the Provided Information through letters of auditors or opinions of counsel of independent attorneys reasonably acceptable to Lender and the Rating Agencies; 
  

 87 

 (b) assist in preparing descriptive materials for presentations to any or all of the
Rating Agencies, and work with, and if requested, supervise, third-party service providers engaged by Borrower, Principal and their respective affiliates to obtain, collect, and deliver information requested or required by Lender or the Rating
Agencies; 
  
 (c) if required by the Rating
Agencies, deliver (i) updated opinions of counsel as to non-consolidation, due execution and enforceability with respect to the Property, Borrower, Principal and their respective Affiliates and the Loan Documents, and (ii) revised organizational
documents for Borrower, which counsel opinions and organizational documents shall be reasonably satisfactory to Lender and the Rating Agencies; 
  
 (d) if required by any Rating Agency, use commercially reasonable efforts to deliver such additional tenant estoppel letters,
subordination agreements or other agreements from parties to agreements that affect the Property, which estoppel letters, subordination agreements or other agreements shall be reasonably satisfactory to Lender and the Rating Agencies; 
  
 (e) make such representations and warranties as of the
closing date of the Securitization with respect to the Property, Borrower, Principal and the Loan Documents as may be reasonably requested by Lender or the Rating Agencies and consistent with the facts covered by such representations and warranties
as they exist on the date thereof, including the representations and warranties made in the Loan Documents; 
  
 (f) execute such non-material amendments to the Loan Documents as may be requested by Lender or the Rating Agencies to effect the
Securitization; 
  
 (g) if requested by Lender,
review any information regarding the Property, Borrower, Principal, the Manager and the Loan which is contained in a preliminary or final private placement memorandum, prospectus, prospectus supplement (including any amendment or supplement to
either thereof), or other disclosure document to be used by Lender or any affiliate thereof; and 
  
 (h) supply to Lender such documentation, financial statements and reports concerning Borrower, Principal, Guarantor, the Loan and/or the
Property in form and substance required in order to comply with any applicable securities laws. 
  
 All reasonable third party costs and expenses incurred by Borrower or Lender in connection with Borrower’s complying with requests made under this
Section 9.1 (including, without limitation, the fees and expenses of the Rating Agencies) shall be paid by Lender. 
  
 Section 9.2 Securitization Indemnification. 
  
 (a) Borrower understands that certain of the Provided Information may be included in Disclosure Documents in connection with the
Securitization and may also be included in filings with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Securities and Exchange Act of 1934, as amended (the
“Exchange Act”), or provided or made available to investors or prospective investors in the Securities, the Rating Agencies, and service providers relating to the 

  

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

  

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other expenses incurred by such Indemnified Persons, as they are incurred, in connection with defending or investigating the Liabilities. 
  
 (d) Promptly after receipt by an Indemnified Person of
notice of any claim or the commencement of any action, the Indemnified Person shall, if a claim in respect thereof is to be made against any Indemnifying Person, notify such Indemnifying Person in writing of the claim or the commencement of that
action; provided, however, that the failure to notify such Indemnifying Person shall not relieve it from any liability which it may have under the indemnification provisions of this Section 9.2 except to the extent that it has
been materially prejudiced by such failure and, provided further that the failure to notify such Indemnifying Person shall not relieve it from any liability which it may have to an Indemnified Person otherwise than under the provisions
of this Section 9.2. If any such claim or action shall be brought against an Indemnified Person, and it shall notify any Indemnifying Person thereof, such Indemnifying Person shall be entitled to participate therein and, to the extent that it
wishes, assume the defense thereof with counsel reasonably satisfactory to the Indemnified Person. After notice from any Indemnifying Person to the Indemnified Person of its election to assume the defense of such claim or action, such Indemnifying
Person shall not be liable to the Indemnified Person for any legal or other expenses subsequently incurred by the Indemnified Person in connection with the defense thereof except as provided in the following sentence; provided,
however, if the defendants in any such action include both an Indemnifying Person, on the one hand, and one or more Indemnified Persons on the other hand, and an Indemnified Person shall have reasonably concluded that there are any legal
defenses available to it and/or other Indemnified Persons that are different or in addition to those available to the Indemnifying Person, the Indemnified Person or Persons shall have the right to select separate counsel to assert such legal
defenses and to otherwise participate in the defense of such action on behalf of such Indemnified Person or Persons. The Indemnified Person shall instruct its counsel to maintain reasonably detailed billing records for fees and disbursements for
which such Indemnified Person is seeking reimbursement hereunder and shall submit copies of such detailed billing records to substantiate that such counsel’s fees and disbursements are solely related to the defense of a claim for which the
Indemnifying Person is required hereunder to indemnify such Indemnified Person. No Indemnifying Person shall be liable for the expenses of more than one (1) such separate counsel unless any Indemnified Person shall have reasonably concluded that
there may be legal defenses available to it that are different from or additional to those available to any Indemnifying Person. 
  
 (e) Without the prior consent of CSFB (which consent shall not be unreasonably withheld), no Indemnifying Person shall settle or
compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is an actual or potential party to
such claim, action, suit or proceeding) unless the Indemnifying Person shall have given CSFB reasonable prior notice thereof and shall have obtained an unconditional release of each Indemnified Person hereunder from all liability arising out of such
claim, action, suit or proceeding. As long as an Indemnifying Person has complied with its obligations to defend and indemnify hereunder, such Indemnifying Person shall not be liable for any settlement made by any Indemnified Person without the
consent of such Indemnifying Person (which consent shall not be unreasonably withheld). 
  

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 (f) The Indemnifying Persons agree that if any indemnification or reimbursement sought
pursuant to this Section 9.2 is finally judicially determined to be unavailable for any reason or is insufficient to hold any Indemnified Person harmless (with respect only to the Liabilities that are the subject of this Section 9.2),
then the Indemnifying Persons, on the one hand, and such Indemnified Person, on the other hand, shall contribute to the Liabilities for which such indemnification or reimbursement is held unavailable or is insufficient: (x) in such proportion as is
appropriate to reflect the relative benefits to the Indemnifying Persons, on the one hand, and such Indemnified Person, on the other hand, from the transactions to which such indemnification or reimbursement relates; or (y) if the allocation
provided by clause (x) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (x) but also the relative faults of the Indemnifying Persons, on the one hand, and
all Indemnified Persons, on the other hand, as well as any other equitable considerations. Notwithstanding the provisions of this Section 9.2, (A) no party found liable for a fraudulent misrepresentation shall be entitled to contribution from
any other party who is not also found liable for such fraudulent misrepresentation, and (B) the Indemnifying Persons agree that in no event shall the amount to be contributed by the Indemnified Persons collectively pursuant to this paragraph exceed
the amount of the fees (by underwriting discount or otherwise) actually received by the Indemnified Persons in connection with the closing of the Loan or the Securitization. 
  
 (g) The Indemnifying Persons agree that the indemnification, contribution and reimbursement obligations set
forth in this Section 9.2 shall apply whether or not any Indemnified Person is a formal party to any lawsuits, claims or other proceedings. The Indemnifying Persons further agree that the Indemnified Persons are intended third party
beneficiaries under this Section 9.2. 
  
 (h) The rights, liabilities and obligations of the Indemnified Persons and the Indemnifying Persons under this Section 9.2 shall survive the termination of this Agreement and the satisfaction and discharge of the Obligations.

  
 (i) Notwithstanding anything to the contrary
contained herein, Borrower shall have no obligation to act as depositor with respect to the Loan or an issuer or registrant with respect to the Securities issued in any Securitization. 
  
 Section 9.3 [RESERVED] 
  
 Section 9.4 Exculpation. Subject to the qualifications below, Lender shall not enforce the liability and obligation of Borrower to perform and
observe the obligations contained in the Note, this Agreement, the Mortgage or the other Loan Documents by any action or proceeding wherein a money judgment shall be sought against Borrower, except that Lender may bring a foreclosure action, an
action for specific performance or any other appropriate action or proceeding to enable Lender to enforce and realize upon its interest under the Note, this Agreement, the Mortgage, the other Loan Documents, or in the Property, the Rents, or any
other collateral given to Lender pursuant to the Loan Documents; provided, however, that, except as specifically provided herein, any judgment in any such action or proceeding shall be enforceable against Borrower only to the extent of
Borrower’s interest in the Property, in the Rents and in any other collateral given to Lender, and Lender, by accepting the Note, this Agreement, the 

  

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Mortgage and the other Loan Documents, agrees that it shall not sue for, seek or demand any deficiency judgment against Borrower in any such action or
proceeding under, or by reason of, or in connection with, the Note, this Agreement, the Mortgage or the other Loan Documents. The provisions of this Section shall not, however, (a) constitute a waiver, release or impairment of any obligation
evidenced or secured by any of the Loan Documents; (b) impair the right of Lender to name Borrower as a party defendant in any action or suit for foreclosure and sale under the Mortgage or the Second Mortgage; (c) affect the validity or
enforceability of any guaranty or indemnity, including without limitation, the Guaranty, the Borrower Guaranty and/or the Environmental Indemnity, made in connection with the Loan or any of the rights and remedies of Lender thereunder; (d) impair
the right of Lender to obtain the appointment of a receiver; (e) impair the enforcement of the Assignment of Leases; (f) constitute a prohibition against Lender to seek a deficiency judgment against Borrower in order to fully realize the security
granted by the Mortgage and/or the other Loan Documents or to commence any other appropriate action or proceeding in order for Lender to exercise its remedies against the Property; or (g) constitute a waiver of the right of Lender to enforce the
liability and obligation of Borrower, by money judgment or otherwise, to the extent of any actual loss, damage, cost, expense, liability, claim or other obligation incurred by Lender (including reasonable attorneys’ fees and costs reasonably
incurred) arising out of or in connection with the following: 
  

	 	(i)	fraud or intentional misrepresentation by any Significant Party in connection with the Loan, including by reason of any claim under RICO; 

  

	 	(ii)	the gross negligence or willful misconduct of Borrower; 

  

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

  

	 	(iv)	the intentional removal or destruction of any portion of the Property by Borrower or any party acting on behalf of Borrower after an Event of Default; 

  

	 	(v)	any Legal Requirement (including RICO) mandating the forfeiture by Borrower of the Property, or any portion thereof, because of the conduct or purported conduct of criminal activity
by Borrower or any Significant Party in connection therewith; 

  

	 	(vi)	the misappropriation or conversion by or on behalf of Borrower of (A) any Insurance Proceeds paid by reason of any Casualty, (B) any Awards received in connection with a
Condemnation, (C) any Rents following an Event of Default, or (D) any Rents paid more than one (1) month in advance; 

  

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	 	(vii)	failure to pay, when funds are available from the Property or Reserves, charges for labor or materials or other charges which become Liens on of the Property which were prior to the
Lien of the Mortgage; 

  

	 	(viii)	any security deposits, advance deposits or any other deposits collected with respect to the Property which are not delivered to Lender upon a foreclosure of the Property or action
in lieu thereof, except to the extent any such security deposits were applied in accordance with the terms and conditions of any of the Leases prior to the occurrence of the Event of Default that gave rise to such foreclosure or action in lieu
thereof; and 

  

	 	(ix)	failure of Borrower to direct the payment of or, pay any, Rents or other Receipts to the Property Account as required by the Loan Documents; and 

  

	 	(x)	the failure of Borrower to apply monies disbursed to it from the Cash Management Account (or any sub-account thereof) for the purpose which such disbursement is made.

  
 Notwithstanding anything to the contrary in this
Agreement, the Note or any of the Loan Documents, (A) Lender shall not be deemed to have waived any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a claim for the full
amount of the Debt secured by the Mortgage or to require that all collateral shall continue to secure all of the Obligations in accordance with the Loan Documents, and (B) the Debt shall be fully recourse to Borrower (i) in the event of: (a)
Borrower filing a voluntary petition under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (b) Borrower, or any Person acting on behalf of Borrower, soliciting or causing to be solicited petitioning creditors for any
involuntary petition against Borrower from any Person; (c) Borrower filing an answer consenting to or otherwise acquiescing in or joining in any involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other
Federal or state bankruptcy or insolvency law, or soliciting or causing to be solicited petitioning creditors for any involuntary petition from any Person; (d) Borrower consenting to or acquiescing in or joining in an application for the appointment
of a custodian, receiver, trustee, or examiner for Borrower or any portion of the Property; (e) Borrower making an assignment for the benefit of creditors, or admitting, in writing or in any legal proceeding, its insolvency or inability to pay its
debts as they become due; (ii) if Borrower fails to maintain its status as a Single Purpose Entity; (iii) if Borrower fails to obtain Lender’s prior consent to any Indebtedness or voluntary Lien encumbering the Property as required by this
Agreement or the Mortgage; (iv) if any Restricted Party fails to obtain Lender’s prior consent to any Transfer as required by this Agreement or the Mortgage; or (v) an act or omission of Borrower, Principal, Guarantor or any Affiliate of
Borrower, Principal, or Guarantor which hinders, delays or interferes with Lender’s enforcement of its rights hereunder or the realization of the Collateral, including the assertion by Borrower, Principal, Guarantor or such Affiliate of
defenses or counterclaims. 
  

 93 

 Further, if any Significant Party fails to provide financial information in accordance with Section
5.1.11 hereof within a reasonable time following request by Lender therefor, Borrower shall pay an amount equal to $10,000 in order to defray the expense incurred by Lender as a result of such delay and to compensate Lender for any losses
suffered as a result of such delay. 
  
 Section 9.5 Matters
Concerning Manager. If (a) the Manager shall become bankrupt or insolvent or (b) a material default occurs under the Management Agreement beyond any applicable grace and cure periods, Borrower shall, at the request of Lender, terminate the
Management Agreement and replace the Manager with a Qualified Manager pursuant to a Replacement Management Agreement, it being understood and agreed that the management fee for such replacement manager shall not exceed then prevailing market rates.

  
 Section 9.6 Servicer. At the option of Lender, the Loan
may be serviced by a servicer/trustee (the “Servicer”) selected by Lender and Lender may delegate all or any portion of its responsibilities under this Agreement and the other Loan Documents to the Servicer pursuant to a servicing
agreement (the “Servicing Agreement”) between Lender and Servicer. Borrower shall not be responsible for any set-up fees or any other costs relating to or arising under the Servicing Agreement; including the monthly servicing fee
due to the Servicer under the Servicing Agreement. 
  
 Section 9.7
Severance of Loan Documents. Lender shall have the right, at any time (whether prior to or after any sale or participation of all or any portion of the Loan), to modify the Loan in order to create one or more senior and subordinate notes
(i.e., an A/B or A/B/C structure) and/or one or more additional components of the Note or Notes, reduce the number of components of the Note or Notes, revise the interest rate for each component, reallocate the principal balances of the Notes
and/or the components, increase or decrease the monthly debt service payments for each component or eliminate the component structure and/or the multiple note structure of the Loan (including the elimination of the related allocations of principal
and interest payments), provided that the Outstanding Principal Balance of all components immediately after the effective date of such modification equals the Outstanding Principal Balance immediately prior to such modification and the weighted
average of the interest rates for all components immediately after the effective date of such modification equals the interest rate of the original Note immediately prior to such modification and modify the Cash Management Agreement with respect to
the newly created components such that the pricing and marketability of the Securities and the size of each class of Securities and the rating assigned to each such class by the Rating Agencies shall provide the most favorable rating levels and
achieve the optimum rating levels for the Loan. Lender shall have the right to modify the Note and/or Notes and any components in accordance with this Section 9.7 and, provided that such modification shall comply with the terms of this
Section 9.7, it shall become immediately effective. If requested by Lender, Borrower shall promptly execute an amendment to the Loan Documents to evidence any such modification. In the event Borrower fails to deliver said amendment to Lender
within fifteen (15) Business Days after request, Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney-in-fact (with full power of substitution), coupled with an interest, in its name and stead to make and
execute all documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue thereof; provided, that, Lender shall not make or execute any such documents under such
power until three (3) Business Days after notice has been given to Borrower by Lender of Lender’s intent to 

  

 94 

 
exercise its rights under such power. Lender shall be obligated to pay any reasonable costs or expenses incurred by Lender or Borrower in connection with the
preparation, execution, recording or filing of the Severed Loan Documents. Except as may be required in connection with a securitization, the Severed Loan Documents shall not contain any representations, warranties or covenants not contained in the
Loan Documents. 
  
 9.8 Mezzanine Loan Option. Lender shall
have the right, on or before the date which is one (1) year following the Closing Date, to divide the Loan into two parts (the “Mezzanine Option”): a mortgage loan (the “Mortgage Loan”) and a mezzanine loan (the
“Mezzanine Loan”). In such event, Borrower agrees to cause the formation of the Mezzanine Borrower. The principal amount of the Mortgage Loan plus the principal amount of the Mezzanine Loan shall equal the outstanding principal
balance of the Loan immediately prior to the creation of the Mortgage Loan and the Mezzanine Loan. In effectuating the foregoing, Mezzanine Lender will make a loan to Mezzanine Borrower; Mezzanine Borrower will contribute the amount of the Mezzanine
Loan to Borrower (in its capacity as Borrower under the Mortgage Loan, “Mortgage Borrower”) and Mortgage Borrower will apply the contribution to pay down the Loan to its Mortgage Loan amount. The Mortgage Loan and the Mezzanine Loan
will be on the same terms and subject to the same conditions set forth in this Agreement, the Note, the Mortgage and the other Loan Documents except as follows: 
  
 (a) Lender (in its capacity as the lender under the Mortgage Loan, the “Mortgage Lender”)
shall have the right to establish different interest rates and debt service payments for the Mortgage Loan and the Mezzanine Loan and to require the payment of the Mortgage Loan and the Mezzanine Loan in such order of priority as may be designated
by Lender; provided, that (i) the total loan amounts for the Mortgage Loan and the Mezzanine Loan shall equal the amount of the Loan immediately prior to the creation of the Mortgage Loan and the Mezzanine Loan, (ii) the weighted average interest
rate of the Mortgage Loan and the Mezzanine Loan shall on the date created equal the interest rate which was applicable to the Loan immediately prior to creation of a Mortgage Loan and a Mezzanine Loan and (iii) prior to the occurrence of an Event
of Default, the debt service payments on the Mortgage Loan note and the Mezzanine Loan note shall equal the debt service payment which are due under the Loan as if no Mezzanine Loan had been created. 
  
 (b) Mezzanine Borrower shall be a special purpose,
bankruptcy remote entity pursuant to applicable Rating Agency criteria and shall own directly or indirectly one hundred percent (100%) of Mortgage Borrower. The security for the Mezzanine Loan shall be a pledge of one hundred percent (100%) of the
direct and indirect ownership interests in Mortgage Borrower. 
  
 (c) Mezzanine Borrower and Mortgage Borrower shall cooperate with all reasonable requests of Lender in order to convert the Loan into a Mortgage Loan and a Mezzanine Loan and shall execute and deliver such documents
as shall reasonably be required by Lender and any Rating Agency in connection therewith, including, without limitation, the delivery of non-consolidation opinions and the modification of organizational documents and loan documents. In the event
Mortgage Borrower and/or Mezzanine Borrower fail to execute and deliver such documents to Lender within five (5) Business Days following such request by Lender, Mortgage Borrower and/or Mezzanine Borrower, as applicable, hereby absolutely and
irrevocably appoint 

  

 95 

 
Lender as their true and lawful attorney, coupled with an interest, in their name and stead to make and execute all documents necessary or desirable to
effect such transactions, Mortgage Borrower and/or Mezzanine Borrower, as applicable, ratifying all that such attorney shall do by virtue thereof. Lender shall pay all costs and expenses in connection with the creation of the Mortgage Loan and the
Mezzanine Loan and all requirements relating thereto, including, without limitation, the cost of any UCC lien insurance policy. 
  
 (d) It shall be an Event of Default under this Agreement, the Note, the Mortgage and the other Loan Documents if Borrower or Mezzanine
Borrower fails to comply with any of the terms, covenants or conditions of this Section 9.8 after expiration of ten (10) Business Days after notice thereof. 
  
 ARTICLE 10 
  
 MISCELLANEOUS 
  
 Section 10.1 Survival. This Agreement and all covenants, agreements, representations and warranties made herein and in the certificates delivered
pursuant hereto shall survive the making by Lender of the Loan and the execution and delivery to Lender of the Note, and shall continue in full force and effect so long as all or any of the Obligations are outstanding and unpaid unless a longer
period is expressly set forth herein or in the other Loan Documents. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the legal representatives, successors and assigns of such party. All
covenants, promises and agreements in this Agreement, by or on behalf of Borrower, shall inure to the benefit of the legal representatives, successors and assigns of Lender. 
  
 Section 10.2 Lender’s Discretion. Whenever pursuant to this Agreement, Lender exercises any right given to it to
approve or disapprove, or any arrangement or term is to be satisfactory to Lender, the decision of Lender to approve or disapprove or to decide whether arrangements or terms are satisfactory or not satisfactory shall (except as is otherwise
specifically herein provided) be in the sole discretion of Lender and shall be final and conclusive. Whenever this Agreement expressly provides that Lender may not withhold its consent or its approval of an arrangement or term, such provisions shall
also be deemed to prohibit Lender from delaying or conditioning such consent or approval. 
  
 Section 10.3 Governing Law 
  
 (a) THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM
THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT, THE NOTE AND THE 

  

 96 

 
OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND
ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE
FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT
PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT, THE NOTE AND/OR THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT, THE NOTE AND THE OTHER LOAN
DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 
  
 (b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS MAY AT LENDER’S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND BORROWER WAIVES
ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING.
BORROWER DOES HEREBY DESIGNATE AND APPOINT: 
  
 CT
CORPORATION SYSTEM 
 111 EIGHTH AVENUE 
 NEW YORK, NEW YORK 10011 
  
 AS ITS
AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID
AGENT AT SAID ADDRESS AND NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF

  

 97 

 
NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO
TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS
AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR. 
  
 (c) BORROWER DOES HEREBY DESIGNATE AND APPOINT: 
  
 CT CORPORATION SYSTEM 
 THE CORPORATION TRUST COMPANY 
 820 BEAR TAVERN ROAD 
 WEST TRENTON, NEW JERSEY 08628 
  
 AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY
FEDERAL OR STATE COURT IN NEW JERSEY, AND BORROWER AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT
EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW JERSEY. 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 WITH AN OFFICE IN NEW JERSEY (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS
AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW JERSEY OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR. 
  
 Section 10.4 Modification, Waiver in Writing. No modification, amendment, extension, discharge, termination or waiver of any provision of this
Agreement, or of the Note, or of any other Loan Document, nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in a writing signed by the party against whom enforcement is sought, and then such
waiver or consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or demand on Borrower, shall entitle Borrower to any other or future notice or
demand in the same, similar or other circumstances. 
  
 Section
10.5 Delay Not a Waiver. Neither any failure nor any delay on the part of Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under the
Note or under any other Loan Document, or under any other instrument given as security therefor, shall operate as or 

  

 98 

 
constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power,
remedy or privilege. In particular, and not by way of limitation, by accepting payment after the due date of any amount payable under this Agreement, the Note or any other Loan Document, Lender shall not be deemed to have waived any right either to
require prompt payment when due of all other amounts due under this Agreement, the Note or the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount. 
  
 Section 10.6 Notices. All notices, consents, approvals and requests
required or permitted hereunder or under any other Loan Document (each, a “Notice”), shall be given in writing and shall be effective for all purposes if hand delivered or sent by (a) certified or registered United States mail,
postage prepaid, return receipt requested or (b) expedited prepaid delivery service, either commercial or United States Postal Service, with proof of attempted delivery, and by telecopier (with answer back acknowledged), addressed as follows (or at
such other address and Person as shall be designated from time to time by any party hereto, as the case may be, in a Notice to the other parties hereto in the manner provided for in this Section 10.6): 
  

			
	If to Lender:	  	 Column Financial, Inc.
 11 Madison Avenue

New York, New York 10010
 Attention: Robert Russell
 Facsimile No. (212) 734-5230

		
	with a copy to:	  	 Column Financial, Inc.
 11 Madison Avenue

New York, New York 10010
 Legal and Compliance Department
 Attention: Tessa Peters
 Facsimile No. (917) 326-7805

		
	with a copy to:	  	 Greenberg Traurig, LLP
 200 Park Avenue
 New York, New York 10166
 Attention: Alan Pleskow, Esq.
 Facsimile No. (212) 801-9200

		
	If to Borrower:	  	 c/o Wyndham International, Inc.
 1950 Stemmons
Freeway, Suite 6001
 Dallas, Texas 75207
 Attention: Philip
Gosch, Esq.
 Facsimile No. (214) 863-1669

		
	With a copy to:	  	 Sidley Austin Brown & Wood LLP
 787 Seventh
Avenue
 New York, New York 10019
 Attention: Alan Weil,
Esq.
 Facsimile No. (212) 839-5599

  

 99 

 A Notice shall be deemed to have been given: in the case of hand delivery or delivery by a reputable overnight courier,
at the time of delivery; in the case of registered or certified mail, when delivered or the first attempted delivery on a Business Day; in the case of expedited prepaid delivery and telecopy, upon the first attempted delivery on a Business Day; or
in the case of telecopy, upon sender’s receipt of a machine-generated confirmation of successful transmission after advice by telephone to recipient that a telecopy Notice is forthcoming. 
  
 Section 10.7 Trial by Jury. BORROWER AND LENDER EACH HEREBY AGREES NOT
TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION
ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER AND LENDER AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD
OTHERWISE ACCRUE. EACH OF BORROWER AND LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER. 
  
 Section 10.8 Headings. The Article and/or Section headings and the Table of Contents in this Agreement are included herein for convenience of
reference only and shall not constitute a part of this Agreement for any other purpose. 
  
 Section 10.9 Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall
be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
  
 Section 10.10 Preferences. Lender shall have the continuing and
exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the Obligations of Borrower hereunder. To the extent Borrower makes a payment or payments to Lender, which payment or proceeds or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of
such payment or proceeds received, the Obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Lender. 
  
 Section 10.11 Waiver of Notice. Borrower hereby expressly waives, and
shall not be entitled to, any notices of any nature whatsoever from Lender except with respect to matters for which this Agreement or the other Loan Documents specifically and expressly provide for the giving of notice by Lender to Borrower and
except with respect to matters for which Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. 
  
 Section 10.12 Remedies of Borrower. In the event that a claim or adjudication is made that Lender or its agents have acted unreasonably or
unreasonably delayed acting in any case 

  

 100 

 
where by law or under this Agreement or the other Loan Documents, Lender or such agent, as the case may be, has an obligation to act reasonably or promptly,
Borrower agrees that neither Lender nor its agents shall be liable for any monetary damages, and Borrower’s sole remedies shall be limited to commencing an action seeking injunctive relief or declaratory judgment. The parties hereto agree that
any action or proceeding to determine whether Lender has acted reasonably shall be determined by an action seeking declaratory judgment. 
  
 Section 10.13 Expenses; Indemnity. 
  
 (a) Borrower covenants and agrees to pay or, if Borrower fails to pay, to reimburse, Lender within five (5) days after receipt of notice
from Lender for all reasonable third-party, out-of-pocket costs and expenses (including reasonable attorneys’ fees and disbursements) incurred by Lender in connection with (i) the preparation, negotiation, execution and delivery of this
Agreement and the other Loan Documents and the consummation of the transactions contemplated hereby and thereby and all the costs of furnishing all opinions by counsel for Borrower (including without limitation any opinions requested by Lender as to
any legal matters arising under this Agreement or the other Loan Documents with respect to the Property); (ii) Borrower’s ongoing performance of and compliance with Borrower’s respective agreements and covenants contained in this Agreement
and the other Loan Documents on its part to be performed or complied with after the Closing Date, including, without limitation, confirming compliance with environmental and insurance requirements; (iii) Lender’s ongoing performance and
compliance with all agreements and conditions contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date; (iv) the negotiation, preparation, execution, delivery and administration of
any consents, amendments, waivers or other modifications to this Agreement and the other Loan Documents and any other documents or matters requested by Lender; (v) securing Borrower’s compliance with any requests made pursuant to the provisions
of this Agreement; (vi) the filing and recording fees and expenses, title insurance and reasonable fees and expenses of counsel for providing to Lender all required legal opinions, and other similar expenses incurred in creating and perfecting the
Liens in favor of Lender pursuant to this Agreement and the other Loan Documents; (vii) enforcing or preserving any rights, either in response to third party claims or in prosecuting or defending any action or proceeding or other litigation, in each
case against, under or affecting Borrower, this Agreement, the other Loan Documents, the Property, or any other security given for the Loan; and (viii) enforcing any obligations of or collecting any payments due from Borrower under this Agreement,
the other Loan Documents, or with respect to the Property or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out” or of any insolvency or bankruptcy
proceedings; provided, however, that Borrower shall not be liable for the payment of any such costs and expenses to the extent the same arise by reason of the gross negligence, illegal acts, fraud or willful misconduct of Lender. Any
cost and expenses due and payable to Lender may be paid, at Lender’s option, from any amounts in the Property Account. 
  
 (b) Borrower shall indemnify, defend and hold harmless Lender from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including, without limitation, the reasonable fees and disbursements of counsel for Lender in connection with any
investigative, administrative or judicial proceeding commenced or threatened, whether 

  

 101 

 
or not Lender shall be designated a party thereto), that may be imposed on, incurred by, or asserted against Lender in any manner relating to or arising out
of (i) any breach by Borrower of its obligations under, or any material misrepresentation by Borrower contained in, this Agreement or the other Loan Documents, or (ii) the use or intended use of the proceeds of the Loan (collectively, the
“Indemnified Liabilities”); provided, however, that Borrower shall not have any obligation to Lender hereunder to the extent that such Indemnified Liabilities arise from the gross negligence, illegal acts, fraud or
willful misconduct of Lender. To the extent that the undertaking to indemnify, defend and hold harmless set forth in the preceding sentence may be unenforceable because it violates any law or public policy, Borrower shall pay the maximum portion
that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Lender. 
  
 (c) Borrower covenants and agrees to pay for or, if Borrower fails to pay, to reimburse Lender for, any fees and expenses incurred by any
Rating Agency in connection with any Rating Agency review of the Loan, the Loan Documents or any transaction contemplated thereby up to a maximum sum of $20,000.00 or any consent, approval, waiver or confirmation obtained from such Rating Agency
pursuant to the terms and conditions of this Agreement or any other Loan Document and Lender shall be entitled to require payment of such fees and expenses as a condition precedent to the obtaining of any such consent, approval, waiver or
confirmation. 
  
 Section 10.14 Schedules Incorporated. The
Schedules annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof. 
  
 Section 10.15 Offsets, Counterclaims and Defenses. Any assignee of Lender’s interest in and to this Agreement, the Note and the other Loan
Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such documents which Borrower may otherwise have against any assignor of such documents, and no such unrelated counterclaim or defense
shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon such documents and any such right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is
hereby expressly waived by Borrower. 
  
 Section 10.16 No Joint
Venture or Partnership; No Third Party Beneficiaries. 
  
 (a) Borrower and Lender intend that the relationships created hereunder and under the other Loan Documents be solely that of borrower and lender. Nothing herein or therein is intended to create a joint venture,
partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Property other than that of mortgagee, beneficiary or lender. 
  
 (b) This Agreement and the other Loan Documents are solely
for the benefit of Lender and Borrower and nothing contained in this Agreement or the other Loan Documents shall be deemed to confer upon anyone other than Lender and Borrower any right to insist upon or to enforce the performance or observance of
any of the obligations contained herein or therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and 

  

 102 

 
exclusively for the benefit of Lender and no other Person shall have standing to require satisfaction of such conditions in accordance with their terms or be
entitled to assume that Lender will refuse to make the Loan (or any disbursement of Reserve Funds) in the absence of strict compliance with any or all thereof and no other Person shall under any circumstances be deemed to be a beneficiary of such
conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or desirable to do so. 
  
 Section 10.17 Publicity. Except as may be otherwise required by the requirements of the New York Stock Exchange
and/or any other securities laws, all news releases, publicity or advertising by 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 Lender, CSFB, or any of their Affiliates shall be subject to the prior approval of Lender. 
  
 Section 10.18 Waiver of Marshalling of Assets. To the fullest extent permitted by law, Borrower, for itself and its successors and assigns, waives all rights to a marshalling of the assets of Borrower,
Borrower’s partners and others with interests in Borrower, and of the Property, or to a sale in inverse order of alienation in the event of foreclosure of the Mortgage, and agrees not to assert any right under any laws pertaining to the
marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents to a sale of
the Property for the collection of the Debt and/or the Other Borrower Obligations without any prior or different resort for collection or of the right of Lender to the payment of the Debt and/or the Other Borrower Obligations out of the net proceeds
of the Property in preference to every other claimant whatsoever. 
  
 Section 10.19 Waiver of Offsets/Defenses/Counterclaims. Borrower hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Lender or its agents or
otherwise to offset any Obligations under 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. 
  
 Section 10.20 Conflict; Construction
of Documents; Reliance. In the event of any conflict between the provisions of this Agreement, any of the other Loan Documents, the provisions of this Agreement shall control. The parties hereto acknowledge that they were represented by
competent counsel in connection with the negotiation, drafting and execution of the Loan Documents and that such Loan Documents shall not be subject to the principle of construing their meaning against the party which drafted same. Borrower
acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering into the Loan without relying in any manner on any statements, representations or recommendations of Lender or any parent,
subsidiary or Affiliate of Lender. Lender shall not be subject to any limitation whatsoever in the exercise of any rights or remedies available to it under any of the Loan Documents or any other agreements or instruments which govern the Loan or the
Other Loans by virtue of the ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest any of them may acquire in Borrower, and Borrower hereby irrevocably waives the right to raise any defense or take any action on the
basis of the foregoing with respect 

  

 103 

 
to Lender’s exercise of any such rights or remedies. Borrower acknowledges that Lender engages in the business of real estate financings and other real
estate transactions and investments which may be viewed as adverse to or competitive with the business of Borrower or its Affiliates. 
  
 Section 10.21 Brokers and Financial Advisors. Borrower hereby represents that it has dealt with no financial advisors, brokers, underwriters,
placement agents, agents or finders in connection with the transactions contemplated by this Agreement. Borrower hereby agrees to indemnify, defend and hold Lender harmless from and against any and all claims, liabilities, costs and expenses of any
kind (including Lender’s attorneys’ fees and expenses) in any way relating to or arising from a claim by any Person that such Person acted on behalf of Borrower or Lender in connection with the transactions contemplated herein. The
provisions of this Section 10.21 shall survive the expiration and termination of this Agreement and the payment of the Debt. 
  
 Section 10.22 Prior Agreements. This Agreement and the other Loan Documents contain the entire agreement of the parties hereto and thereto in
respect of the transactions contemplated hereby and thereby, and all prior agreements among or between such parties, whether oral or written, between Borrower and Lender are superseded by the terms of this Agreement and the other Loan Documents.

  

 104 

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

			
	SUMMERFIELD HANOVER OWNER, LLC,
	a Delaware limited liability company
		
	By:	 	 Summerfield Hanover Manager, Inc.,
 its Managing Member

		
	By:	 	 /s/ MICHAEL HIGA

	 	 	 Name: Michael Higa
 Title: Vice President

	
	COLUMN FINANCIAL, INC.
	 a Delaware corporation

		
	By:	 	 /s/ JEFFREY A. ALTABEF

	 	 	 Name: Jeffrey A. Altabef
 Title: Vice President

  

 105 

 SCHEDULE I 
  
 LEASES 
  
 (INCLUDES TENANT LEASES ONLY) 
  
 Wyndham Summerfield Suite – Parsippany (New Jersey): 
  

									
	 Lessor

	  	 Lessee

	  	 Lease Type

	  	 Rate Amount

	  	 Payment Frequency

	 Wyndham Summerfield
	  	ATM Center, Inc.	  	ATM Machine	  	Commission	  	Monthly
	 Suite – Parsippany
	  	VTV Center	  	Video Machine	  	Commission	  	Monthly
	 	  	MSS Vending	  	Vending Machines	  	Commission	  	Monthly
	 	  	Golden Cleaners	  	Valet Service	  	Commission	  	Monthly

  

 SCHEDULE II 
  
 Intentionally Omitted 
  

 SCHEDULE III 
  
 (Organizational Structure) 
  
 —See Attached–– 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE 1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	  	1
	 Section 1.1
	  	 Definitions
	  	1
	 Section 1.2
	  	 Principles of Construction
	  	24
		
	 ARTICLE 2 GENERAL TERMS
	  	25
	 Section 2.1
	  	 Loan Commitment; Disbursement to Borrower
	  	25
	 Section 2.2
	  	 Interest Rate
	  	25
	 Section 2.3
	  	 Loan Payment
	  	30
	 Section 2.4
	  	 Prepayments
	  	31
	 Section 2.5
	  	 Release of Property
	  	33
	 Section 2.6
	  	 Cash Management
	  	33
	 Section 2.7
	  	 Extension Options
	  	36
	 Section 2.8
	  	 Substitution
	  	37
		
	 ARTICLE 3 CONDITIONS PRECEDENT
	  	40
	 Section 3.1
	  	 Conditions Precedent to Closing
	  	40
		
	 ARTICLE 4 REPRESENTATIONS AND WARRANTIES
	  	43
	 Section 4.1
	  	 Borrower Representations
	  	43
	 Section 4.2
	  	 Survival of Representations
	  	51
		
	 ARTICLE 5 BORROWER COVENANTS
	  	51
	 Section 5.1
	  	 Affirmative Covenants
	  	51
	 Section 5.2
	  	 Negative Covenants
	  	60
		
	 ARTICLE 6 INSURANCE; CASUALTY; CONDEMNATION
	  	69
	 Section 6.1
	  	 Insurance
	  	69
	 Section 6.2
	  	 Casualty
	  	73
	 Section 6.3
	  	 Condemnation
	  	74
	 Section 6.4
	  	 Restoration
	  	74
		
	 ARTICLE 7 RESERVE FUNDS
	  	79
	 Section 7.1
	  	 Intentionally Omitted
	  	79
	 Section 7.2
	  	 Tax and Insurance Escrow Funds
	  	79
	 Section 7.3
	  	 FF&E Reserve
	  	80
	 Section 7.4
	  	 Intentionally Omitted
	  	81
	 Section 7.5
	  	 Debt Service Reserve
	  	81
	 Section 7.6
	  	 Reserve Funds, Generally
	  	82
		
	 ARTICLE 8 DEFAULTS
	  	83
	 Section 8.1
	  	 Event of Default
	  	83
	 Section 8.2
	  	 Remedies
	  	85

  

 i 

					
	 ARTICLE 9 SPECIAL PROVISIONS
	  	87
	 Section 9.1
	  	 Sale of Note and Securitization
	  	87
	 Section 9.2
	  	 Securitization Indemnification
	  	88
	 Section 9.3
	  	 [RESERVED]
	  	91
	 Section 9.4
	  	 Exculpation
	  	91
	 Section 9.5
	  	 Matters Concerning Manager
	  	94
	 Section 9.6
	  	 Servicer
	  	94
	 Section 9.7
	  	 Severance of Loan Documents
	  	94
		
	 ARTICLE 10 MISCELLANEOUS
	  	96
	 Section 10.1
	  	 Survival
	  	96
	 Section 10.2
	  	 Lender’s Discretion
	  	96
	 Section 10.3
	  	 Governing Law
	  	96
	 Section 10.4
	  	 Modification, Waiver in Writing
	  	98
	 Section 10.5
	  	 Delay Not a Waiver
	  	98
	 Section 10.6
	  	 Notices
	  	99
	 Section 10.7
	  	 Trial by Jury
	  	100
	 Section 10.8
	  	 Headings
	  	100
	 Section 10.9
	  	 Severability
	  	100
	 Section 10.10
	  	 Preferences
	  	100
	 Section 10.11
	  	 Waiver of Notice
	  	100
	 Section 10.12
	  	 Remedies of Borrower
	  	100
	 Section 10.13
	  	 Expenses; Indemnity
	  	101
	 Section 10.14
	  	 Schedules Incorporated
	  	102
	 Section 10.15
	  	 Offsets, Counterclaims and Defenses
	  	102
	 Section 10.16
	  	 No Joint Venture or Partnership; No Third Party Beneficiaries
	  	102
	 Section 10.17
	  	 Publicity
	  	103
	 Section 10.18
	  	 Waiver of Marshalling of Assets
	  	103
	 Section 10.19
	  	 Waiver of Offsets/Defenses/Counterclaims
	  	103
	 Section 10.20
	  	 Conflict; Construction of Documents; Reliance
	  	103
	 Section 10.21
	  	 Brokers and Financial Advisors
	  	104
	 Section 10.22
	  	 Prior Agreements
	  	104

  
 SCHEDULES

  

					
	 Schedule I
	  	–	  	 Leases

	 Schedule II
	  	–	  	 Intentionally Omitted

	 Schedule III
	  	–	  	 Organizational Structure

  

 iiIndenture

 Exhibit 4.1 
  

  
 CV THERAPEUTICS, INC. 
 as Issuer 
  
 and 
  
 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 as Trustee 
  

  
 INDENTURE 
  
 Dated as of May 18, 2004 
  

  
 23⁄4% SENIOR SUBORDINATED CONVERTIBLE NOTES DUE 2012 
  

 CROSS-REFERENCE TABLE 
  

			
	 TIA
 Section

	  	 Indenture
 Section

	 310(a)(1)
	  	5.11
	       (a)(2)
	  	5.11
	       (a)(3)
	  	n/a
	       (a)(4)
	  	n/a
	       (a)(5)
	  	5.11
	       (b)
	  	5.3; 5.11
	       (c)
	  	n/a
	 311(a)
	  	5.12
	       (b)
	  	5.12
	       (c)
	  	n/a
	 312(a)
	  	2.10
	       (b)
	  	14.3
	       (c)
	  	14.3
	 313(a)
	  	5.7
	       (b)(1)
	  	n/a
	       (b)(2)
	  	5.7
	       (c)
	  	5.7; 14.2
	       (d)
	  	5.7
	 314(a)(1),(2),(3)
	  	9.6; 14.6
	       (a)(4)
	  	9.6; 9.7; 14.6
	       (b)
	  	n/a
	       (c)(1)
	  	14.5
	       (c)(2)
	  	14.5
	       (c)(3)
	  	n/a
	       (d)
	  	n/a
	       (e)
	  	14.6
	       (f)
	  	n/a
	 315(a)
	  	5.1(a)
	       (b)
	  	5.6; 14.2
	       (c)
	  	5.1(b)
	       (d)
	  	5.1(c)
	       (e)
	  	4.14
	 316(a)(last sentence)
	  	2.13
	       (a)(1)(A)
	  	4.5
	       (a)(1)(B)
	  	4.4
	       (a)(2)
	  	n/a
	       (b)
	  	4.7
	       (c)
	  	7.4
	 317(a)(1)
	  	4.8
	       (a)(2)
	  	4.9
	       (b)
	  	2.5
	 318(a)
	  	14.1
	       (b)
	  	n/a
	       (c)
	  	14.1

 “n/a” means not applicable 
  
 This Cross-Reference Table shall not, for any purpose, be deemed to be a part of the
Indenture. 
  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	 ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	  	1
			
	 SECTION 1.1.
	 	 Definitions
	  	1
	 SECTION 1.2.
	 	 Incorporation by Reference of Trust Indenture Act
	  	10
	 SECTION 1.3.
	 	 Rules of Construction
	  	11
		
	 ARTICLE 2 THE SECURITIES
	  	11
			
	 SECTION 2.1.
	 	 Title and Terms
	  	11
	 SECTION 2.2.
	 	 Form of Securities
	  	12
	 SECTION 2.3.
	 	 Legends
	  	13
	 SECTION 2.4.
	 	 Execution, Authentication, Delivery and Dating
	  	17
	 SECTION 2.5.
	 	 Registrar and Paying Agent
	  	17
	 SECTION 2.6.
	 	 Paying Agent to Hold Assets in Trust
	  	18
	 SECTION 2.7.
	 	 General Provisions Relating to Transfer and Exchange
	  	18
	 SECTION 2.8.
	 	 Book-Entry Provisions for the Global Securities
	  	19
	 SECTION 2.9.
	 	 Special Transfer Provisions
	  	20
	 SECTION 2.10.
	 	 Holder Lists
	  	21
	 SECTION 2.11.
	 	 Persons Deemed Owners
	  	21
	 SECTION 2.12.
	 	 Mutilated, Destroyed, Lost or Stolen Securities
	  	21
	 SECTION 2.13.
	 	 Treasury Securities
	  	22
	 SECTION 2.14.
	 	 Temporary Securities
	  	22
	 SECTION 2.15.
	 	 Cancellation
	  	22
	 SECTION 2.16.
	 	 CUSIP Numbers
	  	23
	 SECTION 2.17.
	 	 Defaulted Interest
	  	23
		
	 ARTICLE 3 SATISFACTION AND DISCHARGE
	  	23
			
	 SECTION 3.1.
	 	 Satisfaction and Discharge of Indenture
	  	23
	 SECTION 3.2.
	 	 Deposited Monies To Be Held in Trust
	  	24
	 SECTION 3.3.
	 	 Return of Unclaimed Monies
	  	24
		
	 ARTICLE 4 DEFAULTS AND REMEDIES
	  	24
			
	 SECTION 4.1.
	 	 Events of Default
	  	24
	 SECTION 4.2.
	 	 Acceleration of Maturity; Rescission and Annulment
	  	26
	 SECTION 4.3.
	 	 Other Remedies
	  	26
	 SECTION 4.4.
	 	 Waiver of Past Defaults
	  	26
	 SECTION 4.5.
	 	 Control by Majority
	  	27
	 SECTION 4.6.
	 	 Limitation on Suit
	  	27
	 SECTION 4.7.
	 	 Unconditional Rights of Holders to Receive Payment and to Convert
	  	28
	 SECTION 4.8.
	 	 Collection of Indebtedness and Suits for Enforcement by the Trustee
	  	28
	 SECTION 4.9.
	 	 Trustee May File Proofs of Claim
	  	28
	 SECTION 4.10.
	 	 Restoration of Rights and Remedies
	  	29
	 SECTION 4.11.
	 	 Rights and Remedies Cumulative
	  	29
	 SECTION 4.12.
	 	 Delay or Omission Not Waiver
	  	29
	 SECTION 4.13.
	 	 Application of Money Collected
	  	29
	 SECTION 4.14.
	 	 Undertaking for Costs
	  	30
	 SECTION 4.15.
	 	 Waiver of Stay or Extension Laws
	  	30

  

 -i- 

					
	 ARTICLE 5 THE TRUSTEE
	  	30
			
	 SECTION 5.1.
	 	 Certain Duties and Responsibilities
	  	30
	 SECTION 5.2.
	 	 Certain Rights of Trustee
	  	32
	 SECTION 5.3.
	 	 Individual Rights of Trustee
	  	32
	 SECTION 5.4.
	 	 Money Held in Trust
	  	32
	 SECTION 5.5.
	 	 Trustee’s Disclaimer
	  	32
	 SECTION 5.6.
	 	 Notice of Defaults
	  	33
	 SECTION 5.7.
	 	 Reports by Trustee to Holders
	  	33
	 SECTION 5.8.
	 	 Compensation and Indemnification
	  	33
	 SECTION 5.9.
	 	 Replacement of Trustee
	  	33
	 SECTION 5.10.
	 	 Successor Trustee by Merger, Etc.
	  	34
	 SECTION 5.11.
	 	 Corporate Trustee Required; Eligibility
	  	34
	 SECTION 5.12.
	 	 Collection of Claims Against the Company
	  	34
		
	 ARTICLE 6 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	  	35
			
	 SECTION 6.1.
	 	 Company May Consolidate, Etc Only on Certain Terms
	  	35
	 SECTION 6.2.
	 	 Successor Substituted
	  	35
		
	 ARTICLE 7 AMENDMENTS, SUPPLEMENTS AND WAIVERS
	  	35
			
	 SECTION 7.1.
	 	 Without Consent of Holders of Securities
	  	35
	 SECTION 7.2.
	 	 With Consent of Holders of Securities
	  	36
	 SECTION 7.3.
	 	 Compliance with Trust Indenture Act
	  	37
	 SECTION 7.4.
	 	 Revocation of Consents and Effect of Consents or Votes
	  	37
	 SECTION 7.5.
	 	 Notation on or Exchange of Securities
	  	38
	 SECTION 7.6.
	 	 Trustee to Sign Amendment, Etc.
	  	38
		
	 ARTICLE 8 MEETING OF HOLDERS OF SECURITIES
	  	38
			
	 SECTION 8.1.
	 	 Purposes for Which Meetings May Be Called
	  	38
	 SECTION 8.2.
	 	 Call Notice and Place of Meetings
	  	38
	 SECTION 8.3.
	 	 Persons Entitled to Vote at Meetings
	  	39
	 SECTION 8.4.
	 	 Quorum; Action
	  	39
	 SECTION 8.5.
	 	 Determination of Voting Rights; Conduct and Adjournment of Meetings
	  	39
	 SECTION 8.6.
	 	 Counting Votes and Recording Action of Meetings
	  	40
		
	 ARTICLE 9 COVENANTS
	  	40
			
	 SECTION 9.1.
	 	 Payment of Principal, Premium and Interest
	  	40
	 SECTION 9.2.
	 	 Maintenance of Offices or Agencies
	  	40
	 SECTION 9.3.
	 	 Corporate Existence
	  	41
	 SECTION 9.4.
	 	 Maintenance of Properties
	  	41
	 SECTION 9.5.
	 	 Payment of Taxes and Other Claims
	  	41
	 SECTION 9.6.
	 	 Reports
	  	41
	 SECTION 9.7.
	 	 Compliance Certificate
	  	42
	 SECTION 9.8.
	 	 Resale of Certain Securities
	  	42
	 SECTION 9.9.
	 	 Pledge and Escrow Agreement Deposit
	  	42
		
	 ARTICLE 10 REDEMPTION OF SECURITIES
	  	42
			
	 SECTION 10.1.
	 	 Optional Redemption
	  	42
	 SECTION 10.2.
	 	 Notice to Trustee
	  	42
	 SECTION 10.3.
	 	 Selection of Securities to Be Redeemed
	  	42
	 SECTION 10.4.
	 	 Notice of Redemption
	  	43
	 SECTION 10.5.
	 	 Effect of Notice of Redemption
	  	44
	 SECTION 10.6.
	 	 Deposit of Redemption Price
	  	44

  

 -ii- 

					
	 SECTION 10.7.
	 	 Securities Redeemed in Part
	  	44
		
	 ARTICLE 11 REPURCHASE OF SECURITIES
	  	44
			
	 SECTION 11.1.
	 	 Repurchase Right Upon Fundamental Change
	  	44
	 SECTION 11.2.
	 	 Conditions to the Company’s Election to Pay the Repurchase Price in Common Stock
	  	46
	 SECTION 11.3.
	 	 Notices; Method of Exercising Repurchase Right, Etc.
	  	46
		
	 ARTICLE 12 CONVERSION OF SECURITIES
	  	49
			
	 SECTION 12.1.
	 	 Conversion Right and Conversion Rate
	  	49
	 SECTION 12.2.
	 	 Exercise of Conversion Right
	  	49
	 SECTION 12.3.
	 	 Fractions of Shares
	  	50
	 SECTION 12.4.
	 	 Adjustment of Conversion Rate
	  	50
	 SECTION 12.5.
	 	 Notice of Adjustments of Conversion Rate
	  	57
	 SECTION 12.6.
	 	 Notice Prior to Certain Actions
	  	57
	 SECTION 12.7.
	 	 Company to Reserve Common Stock
	  	58
	 SECTION 12.8.
	 	 Taxes on Conversions
	  	58
	 SECTION 12.9.
	 	 Covenant as to Common Stock
	  	58
	 SECTION 12.10.
	 	 Cancellation of Converted Securities
	  	58
	 SECTION 12.11.
	 	 Effect of Recapitalization, Reclassification, Consolidation, Merger or Sale
	  	58
	 SECTION 12.12.
	 	 Responsibility of Trustee for Conversion Provisions
	  	59
		
	 ARTICLE 13 SUBORDINATION
	  	60
			
	 SECTION 13.1.
	 	 Securities Subordinated to Senior Debt
	  	60
	 SECTION 13.2.
	 	 Subrogation
	  	62
	 SECTION 13.3.
	 	 Obligation of the Company Is Absolute and Unconditional
	  	62
	 SECTION 13.4.
	 	 Maturity of or Default on Senior Debt
	  	62
	 SECTION 13.5.
	 	 Payments on Securities Permitted
	  	62
	 SECTION 13.6.
	 	 Effectuation of Subordination by Trustee
	  	62
	 SECTION 13.7.
	 	 Knowledge of Trustee
	  	63
	 SECTION 13.8.
	 	 Trustee’s Relation to Senior Debt
	  	63
	 SECTION 13.9.
	 	 Rights of Holders of Senior Debt Not Impaired
	  	63
	 SECTION 13.10.
	 	 Modification of Terms of Senior Debt
	  	63
	 SECTION 13.11.
	 	 Certain Conversions Not Deemed Payment
	  	64
	 SECTION 13.12.
	 	 Relation to Other Indebtedness. The Securities shall be “Designated Senior Debt” for purposes of the indenture governing the
Company’s 43⁄4% Convertible Subordinated Notes due 2007. Additionally, the Securities shall rank on parity with the Company’s outstanding 2.0% Senior Subordinated Convertible Debentures due 2023.
	  	64
		
	 ARTICLE 14 OTHER PROVISIONS OF GENERAL APPLICATION
	  	64
			
	 SECTION 14.1.
	 	 Trust Indenture Act Controls
	  	64
	 SECTION 14.2.
	 	 Notices
	  	64
	 SECTION 14.3.
	 	 Communication by Holders with Other Holders
	  	65
	 SECTION 14.4.
	 	 Acts of Holders of Securities
	  	65
	 SECTION 14.5.
	 	 Certificate and Opinion as to Conditions Precedent
	  	66
	 SECTION 14.6.
	 	 Statements Required in Certificate or Opinion
	  	67
	 SECTION 14.7.
	 	 Effect of Headings and Table of Contents
	  	67
	 SECTION 14.8.
	 	 Successors and Assigns
	  	67
	 SECTION 14.9.
	 	 Separability Clause
	  	67
	 SECTION 14.10.
	 	 Benefits of Indenture
	  	67

  

 -iii- 

					
	 SECTION 14.11.
	 	 Governing Law
	  	67
	 SECTION 14.12.
	 	 Counterparts
	  	67
	 SECTION 14.13.
	 	 Legal Holidays
	  	67
	 SECTION 14.14.
	 	 Recourse Against Others
	  	68

  

 -iv- 

 INDENTURE, dated as of May 18, 2004, between CV THERAPEUTICS, INC., a corporation duly organized and
existing under the laws of the State of Delaware, having its principal office at 3172 Porter Drive, Palo Alto, California 94304 (the “Issuer” or the “Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
(the “Trustee”), having its principal corporate trust office at Sixth & Marquette, MAC N9303-120, Minneapolis, MN 55479. 
  
 RECITALS OF THE COMPANY 
  
 The Company has duly authorized the creation of an issue of its 23⁄4% Senior Subordinated Convertible Notes due 2012 (herein called the
“Securities”) of substantially the tenor and amount hereinafter set forth, and to provide therefor the Company has duly authorized the execution and delivery of this Indenture. 
  
 All things necessary to make the Securities, when the Securities are executed
by the Company and authenticated and delivered hereunder and duly issued by the Company, the valid obligations of the Company, and to make this Indenture a valid agreement of the Company, in accordance with their and its terms, have been done.

  
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 

 
 For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Securities, as follows: 
  

ARTICLE 1 
  
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 SECTION 1.1. Definitions. For all purposes of this Indenture and the Securities, the following terms are defined as follows: 
  
 “Act”, when used with respect to any Holder of a Security,
has the meaning specified in Section 14.4(a) hereof. 
  
 “Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition,
“control”, when used with respect to any specified Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Bankruptcy Law” means Title 11 of the U.S. Code or any similar federal or state law for the relief of debtors. 
  
 “Board of Directors” means either the board of directors of
the Company or any committee of that board empowered to act for it with respect to this Indenture. 
  
 “Board Resolution” means a resolution duly adopted by the Board of Directors, a copy of which, certified by the Secretary or an Assistant
Secretary of the Company to be in full force and effect on the date of such certification, shall have been delivered to the Trustee. 
  

 “Business Day”, when used with respect to any Place of Payment or Place of Conversion,
means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of Payment or Place of Conversion, as the case may be, are authorized or obligated by law to close. 
  
 “Cash Buy-Out” has the meaning specified in Section 11.1(a)
hereof. 
  
 “Change of Control” means the
occurrence of any of the following after the original issuance of the Securities: 
  
 (1) the acquisition by any person, including any syndicate or group deemed to be a “person” under Section 13(d)(3) of the
Exchange Act, of beneficial ownership, directly or indirectly, through a purchase, merger or other acquisition transaction or series of transactions, of shares of capital stock of the Company entitling such person to exercise 50% or more of the
total voting power of all shares of capital stock of the Company entitled to vote generally in elections of directors, other than any such acquisition by the Company, any subsidiary of the Company or any employee benefit plan of the Company;

  
 (2) any consolidation or merger of the
Company with or into any other person, any merger of another person into the Company, or any conveyance, transfer, sale, lease or other disposition of all or substantially all of the properties and assets of the Company to another person, other than
(a) any such transaction (x) that does not result in any reclassification, conversion, exchange or cancellation of outstanding shares of capital stock of the Company and (y) pursuant to which holders of capital stock of the Company immediately prior
to such transaction have the entitlement to exercise, directly or indirectly, 50% or more of the total voting power of all shares of capital stock of the Company entitled to vote generally in the election of directors of the continuing or surviving
person immediately after such transaction or (b) any merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding shares of Common Stock solely
into shares of common stock of the surviving entity; 
  
 (3) during any consecutive two-year period, individuals who at the beginning of that two-year period constituted the Board of Directors (together with any new directors whose election to the Board of Directors, or whose nomination for
election by the stockholders of the Company, was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose elections or nominations for election were previously so
approved) cease for any reason to constitute a majority of the Board of Directors then in office; or 
  
 (4) the Company is liquidated or dissolved or a resolution is passed by the Company’s stockholders approving a plan of liquidation or
dissolution of the Company other than in a transaction which complies with the provisions described in Article 6 of this Indenture. 
  
 Beneficial ownership shall be determined in accordance with Rule 13d-3 promulgated by the SEC under the Exchange Act. The term “person” shall
include any syndicate or group which would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act. 
  
 “Chief Executive Officer” means the chief executive officer of the Company. 
  
 “Closing Price” of any security on any date of determination means: 
  
 (1) the closing sale price (or, if no closing sale price is
reported, the last reported sale price) of such security (regular way) on the New York Stock Exchange on such date; 
  

 -2- 

 (2) if such security is not listed for trading on the New York Stock Exchange on any such
date, the closing sale price as reported in the composite transactions for the principal U.S. securities exchange on which such security is so listed; 
  
 (3) if such security is not so listed on a U.S. national or regional securities exchange, the closing sale price as reported by the Nasdaq
National Market or Nasdaq SmallCap Market; 
  
 (4) if such security is not so reported, the last quoted bid price for such security in the over-the-counter market as reported by the National Quotation Bureau or similar organization; or 
  
 (5) if such bid price is not available, the average of the
mid-point of the last bid and ask prices of such security on such date from at least three nationally recognized independent investment banking firms retained for this purpose by the Company. 
  
 “Closing Trading Price” of the Securities on any date of
determination for purposes of calculating the Make-Whole Premium means the average of the secondary market bid quotations per $1,000 principal amount of Securities obtained by the Trustee for $2,000,000 principal amount of the Securities at
approximately 3:30 p.m., New York City time, on such determination date from two independent nationally recognized securities dealers selected by the Company, which may include one or more of the Initial Purchasers; provided, however,
that if two such bids cannot reasonably be obtained by the Trustee, but one such bid can reasonably be obtained by the Trustee, this one bid shall be used. If the Trustee cannot reasonably obtain at least one bid for $2,000,000 principal amount of
Securities from a nationally recognized securities dealer, then no Make-Whole Premium shall be paid. 
  
 “Common Stock” means any stock of any class of the Company which has no preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which is not subject to redemption by the Company. However, subject to the provisions of Section 12.11 hereof, shares issuable on conversion of
Securities shall include only shares of the class designated as Common Stock, par value $0.001 per share, of the Company at the date of this Indenture or shares of any class or classes resulting from any reclassification or reclassifications thereof
and which have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which are not subject to redemption by the Company, provided,
however, that if at any time there shall be more than one such resulting class, the shares of each such class then so issuable shall be substantially in the proportion which the total number of shares of such class resulting from all such
reclassifications bears to the total number of shares of all such classes resulting from all such reclassifications. 
  
 “Company” means the corporation named as the “Company” in the first paragraph of this instrument until a successor corporation
shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor corporation. 
  
 “Company Notice” has the meaning specified in Section 11.3 hereof. 
  
 “Company Order” means a written order signed in the name of the Company by both (1) the Chief Executive
Officer, the President or a Vice President and (2) so long as not the same as the officer signing pursuant to clause (1), the Chief Financial Officer, the Treasurer, the Secretary or any Assistant Secretary of the Company, and delivered to the
Trustee. 
  
 “Conversion Agent” means any Person
authorized by the Company to convert Securities in accordance with Article 12 hereof. 
  

 -3- 

 “Conversion Price” shall equal (i) $1,000 divided by (ii) the Conversion Rate for $1,000
principal amount of Securities. 
  
 “Conversion
Rate” has the meaning specified in Section 12.1 hereof. 
  
 “Corporate Trust Office” means for purposes of presentation or surrender of Securities for payment, registration, transfer, exchange or conversion or for service of notices or demands upon the Company, the office of the
Trustee located in the City of New York (which at the date of this Indenture is located at Wells Fargo Corporate Trust, c/o The Depository Trust Company, 1st Floor, TADS Dept., 55 Water Street, New York, NY 10041), and for all other purposes, the
office of the Trustee located in the City of Minneapolis, Minnesota (which at the date of this Indenture is located at Sixth & Marquette, MAC N9303-120, Minneapolis, MN 55479). 
  
 “Corporation” means corporations, associations, limited liability companies, companies and business trusts.

  
 “Current Market Price” has the meaning set
forth in Section 12.4(g). 
  
 “Custodian” means
any receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law. 
  
 “Default” means an event which is, or after notice or lapse of time or both would be, an Event of Default. 
  
 “Defaulted Interest” has the meaning specified in Section
2.17 hereof. 
  
 “Depositary” means The
Depository Trust Company, its nominees and their respective successors. 
  
 “Designated Senior Debt” means Senior Debt of the Company which, at the date of determination, has an aggregate amount outstanding of, or under which, at the date of determination, the holders thereof are committed to lend
up to, at least $12.5 million and is specifically designated in the instrument, agreement or other document evidencing or governing that Senior Debt as “Designated Senior Debt” for purposes of this Indenture (provided,
however, that such instrument, agreement or other document may place limitations and conditions on the right of such Senior Debt to exercise the rights of Designated Senior Debt). 
  
 “Dollar,” “U.S. Dollar” or “U.S. $” means a dollar or other equivalent
unit in such coin or currency of the United States as at the time shall be legal tender for the payment of public and private debts. 
  
 “DTC Participants” has the meaning specified in Section 2.8 hereof. 
  
 “Escrow Account” means the escrow account provided for under the Pledge and Escrow Agreement. 

 
 “Escrow Agent” means Wells Fargo Bank, National
Association, in its capacity as escrow agent under the Pledge and Escrow Agreement, and any permitted successors thereto. 
  
 “Event of Default” has the meaning specified in Section 4.1 hereof. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Expiration Time” has the meaning specified in Section
12.4(f) hereof. 
  
 “fair market value” has the
meaning set forth in Section 12.4(g) hereof. 
  

 -4- 

 “Fundamental Change” means the occurrence of either a Change of Control or a Termination
of Trading. 
  
 “Global Security” has the meaning
specified in Section 2.2 hereof. 
  
 “Guarantee”
means any obligation, contingent or otherwise, of any Person, directly or indirectly guaranteeing any Indebtedness of any other Person and any obligation, direct or indirect, contingent or otherwise, of such Person: 
  
 (1) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or maintain financial statement
conditions or otherwise); or 
  
 (2) entered into
for purposes of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); 
  
 provided, however, that the term “guarantee” will not include endorsements for collection or deposit in the ordinary
course of business. The term “guarantee” used as a verb has a corresponding meaning. 
  
 “Holder,” when used with respect to any Security, means the Person in whose name the Security is registered in the Register. 
  
 “Indebtedness,” when used with respect to any Person, and without duplication means: 
  
 (1) all indebtedness, obligations and other liabilities
(contingent or otherwise) of such Person for borrowed money (including obligations of the Company in respect of overdrafts, foreign exchange contracts, currency exchange agreements, Interest Rate Protection Agreements, and any loans or advances from
banks, whether or not evidenced by notes or similar instruments) or evidenced by bonds, debentures, notes or other instruments for the payment of money, or incurred in connection with the acquisition of any property, services or assets (whether or
not the recourse of the lender is to the whole of the assets of such Person or to only a portion thereof), other than any account payable or other accrued current liability or obligation to trade creditors incurred in the ordinary course of business
in connection with the obtaining of materials or services; 
  
 (2) all reimbursement obligations and other liabilities (contingent or otherwise) of such Person with respect to letters of credit, bank guarantees, bankers’ acceptances, surety bonds, performance bonds or other
guaranty of contractual performance; 
  
 (3) all
obligations and liabilities (contingent or otherwise) in respect of (a) leases of such Person required, in conformity with generally accepted accounting principles, to be accounted for as capitalized lease obligations on the balance sheet of such
Person and (b) any lease or related documents (including a purchase agreement) in connection with the lease of real property which provides that such Person is contractually obligated to purchase or cause a third party to purchase the leased
property and thereby guarantee a minimum residual value of the leased property to the landlord and the obligations of such Person under such lease or related document to purchase or to cause a third party to purchase the leased property; 

 
 (4) all obligations of such Person (contingent or
otherwise) with respect to an interest rate or other swap, cap or collar agreement or other similar instrument or agreement or foreign currency hedge, exchange, purchase or similar instrument or agreement; 
  

 -5- 

 (5) all direct or indirect guaranties or similar agreements by such Person in respect of,
and obligations or liabilities (contingent or otherwise) of such Person to purchase or otherwise acquire or otherwise assure a creditor against loss in respect of, indebtedness, obligations or liabilities of another Person of the kind described in
clauses (1) through (4); 
  
 (6) any indebtedness
or other obligations described in clauses (1) through (4) secured by any mortgage, pledge, lien or other encumbrance existing on property which is owned or held by such Person, regardless of whether the indebtedness or other obligation secured
thereby shall have been assumed by such Person; and 
  
 (7) any and all deferrals, renewals, extensions, refinancings, replacements, restatements and refundings of, or amendments, modifications or supplements to, any indebtedness, obligation or liability of the kind described in clauses (1)
through (6). 
  
 “Indenture” means this
instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof. 
  
 “Initial Purchasers” means Merrill Lynch & Co., Merrill
Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., First Albany Capital Inc., J.P. Morgan Securities Inc., Needham & Company, Inc., Piper Jaffray & Co. and SG Cowen & Co., LLc.

  
 “Interest Payment Date” means each May 16 and
November 16. 
  
 “Interest Rate” means 23⁄4%
per annum. 
  
 “Interest Rate Protection
Agreement” means, with respect to any Person, any interest rate swap agreement, interest rate cap or collar agreement or other financial agreement or arrangement designed to protect such Person against fluctuations in interest rates, as in
effect from time to time. 
  
 “Liquidated
Damages” means all liquidated damages, if any, payable pursuant to Section 3 of the Registration Rights Agreement. 
  
 “Make-Whole Premium” has the meaning specified in Section 11.1(a) hereof. 
  
 “Maturity” means the date on which the principal of such Security becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by acceleration, conversion, call for redemption, exercise of a Repurchase Right or otherwise. 
  
 “Measurement Period” has the meaning specified in Section 12.4(d) hereof. 
  
 “Nasdaq National Market” means the National Association of Securities Dealers Automated Quotation National
Market or any successor national securities exchange or automated over-the-counter trading market in the United States. 
  
 “Non-Electing Share” has the meaning specified in Section 12.11 hereof. 
  
 “Officer” of the Company means the Chief Executive Officer, the President, the Chief Financial Officer, the
Treasurer, any Vice President, the Secretary or any Assistant Secretary of the Company. 
  

 -6- 

 “Officers’ Certificate” means a certificate signed by both (1) the Chief Executive
Officer, the President or a Vice President and (2) so long as not the same as the officer signing pursuant to clause (1), the Chief Financial Officer, the Treasurer or the Secretary of the Company, and delivered to the Trustee. 
  
 “Opinion of Counsel” means a written opinion of counsel, who
may be counsel to the Company (and may include directors or employees of the Company) and which opinion is acceptable to the Trustee, which acceptance shall not be unreasonably withheld. 
  
 “Outstanding,” when used with respect to Securities, means, as of the date of determination, all Securities
theretofore authenticated and delivered under this Indenture, except Securities: 
  
 (1) previously canceled by the Trustee or delivered to the Trustee for cancellation; 
  
 (2) for the payment or redemption of which money in the
necessary amount has been previously deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such
Securities, provided, however, that if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture; and 
  
 (3) which have been paid, in exchange for or in lieu of which other Securities have been authenticated and
delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such Securities
are valid obligations of the Company. 
  
 “Paying
Agent” has the meaning specified in Section 2.5 hereof. 
  
 “Payment Blockage Notice” has the meaning specified in Section 13.1(d) hereof. 
  
 “Person” means any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company,
trust, estate, unincorporated organization or government or any agency or political subdivision thereof. 
  
 “Physical Securities” has the meaning specified in Section 2.2 hereof. 
  
 “Place of Conversion” means any city in which any Conversion Agent is located. 
  
 “Place of Payment” means any city in which any Paying Agent
is located. 
  
 “Pledge and Escrow Agreement”
means the Pledge and Escrow Agreement, dated as of May 18, 2004, between the Company and the Escrow Agent. 
  
 “Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same debt as that
evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 2.12 hereof in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security. 
  
 “Purchase Agreement” means the Purchase Agreement, dated May 12, 2004, between the Company and the Initial Purchasers. 
  
 “QIB” means a “qualified institutional buyer” as defined in Rule 144A. 
  

 -7- 

 “Quoted Price” of the Common Stock means the last reported sale price of the Common
Stock on the Nasdaq National Market or, if the Common Stock is listed on a national securities exchange, then on such exchange, or if the Common Stock is not quoted on Nasdaq National Market or listed on an exchange, the average of the last bid and
asked price on the National Association of Securities Dealers Automated Quotation System. 
  
 “Record Date” means either a Regular Record Date or a Special Record Date, as the case may be, provided that, for purposes of Section 12.4 hereof, Record Date has the meaning specified in Section
12.4(g) hereof. 
  
 “Redemption Date,” when used
with respect to any Security to be redeemed, means the date fixed for such redemption pursuant to this Indenture. 
  
 “Redemption Price” has the meaning specified in Section 10.1 hereof. 
  
 “Reference Period” has the meaning set forth in Section 12.4(d) hereof. 
  
 “Register” has the meaning specified in Section 2.5 hereof.

  
 “Registrar” has the meaning specified in
Section 2.5 hereof. 
  
 “Registration Rights
Agreement” means the Registration Rights Agreement, dated as of May 18, 2004, between the Company and the Initial Purchasers. 
  
 “Regular Record Date” for the interest on the Securities (including Liquidated Damages, if any) payable means the May 2 (whether or not a
Business Day) next preceding a May 16 Interest Payment Date and the November 2 (whether or not a Business Day) next preceding a November 16 Interest Payment Date. 
  
 “Regulation S” means Regulation S promulgated under the Securities Act. 
  
 “Repurchase Date” has the meaning specified in Section 11.1
hereof. 
  
 “Repurchase Price” has the meaning
specified in Section 11.1 hereof. 
  
 “Repurchase
Right” has the meaning specified in Section 11.1 hereof. 
  
 “Responsible Officer,” when used with respect to the Trustee, means any officer of the Trustee, including any vice president, assistant vice president, secretary, assistant secretary, the treasurer, any assistant treasurer,
the managing director or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to
whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject. 
  
 “Restricted Securities” means the Securities defined as such in Section 2.3 hereof. 
  
 “Restricted Securities Legend” has the meaning set forth in
Section 2.3(a) hereof. 
  
 “Rights” means any
common stock or preferred stock purchase right, as the case may be, that all or substantially all shares of Common Stock are entitled to receive under a Rights Plan. 
  
 “Rights Plan” means the Company’s preferred shares rights plan in connection with the First Amended
and Restated Rights Agreement, dated as of July 19, 2000, by and between the Company and Wells 

  

 -8- 

 
Fargo Bank, National Association, as successor to Wells Fargo Bank Minnesota, N.A., and any preferred shares rights plan or any similar plan adopted by the
Company after the date hereof. 
  
 “Rule 144”
means Rule 144 under the Securities Act (including any successor rule thereof), as the same may be amended from time to time. 
  
 “Rule 144A” means Rule 144A as promulgated under the Securities Act (including any successor rule thereof), as the same may be amended
from time to time. 
  
 “SEC” means the Securities
and Exchange Commission. 
  
 “Securities” has the
meaning ascribed to it in the first paragraph under the caption “Recitals of the Company.” 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Senior Debt” means the principal of, premium, if any, interest (including all interest accruing subsequent
to the commencement of any bankruptcy or similar proceeding, whether or not a claim for post-petition interest is allowable as a claim in any such proceeding) and rent payable on or termination payment with respect to or in connection with, and all
fees, costs, expenses and other amounts accrued or due on or in connection with, Indebtedness of the Company, whether outstanding on the date of this Indenture or thereafter created, incurred, assumed, guaranteed or in effect guaranteed by the
Company (including all deferrals, renewals, extensions or refundings of, or amendments, modifications or supplements to, the foregoing), except for (a) any particular Indebtedness in respect of which the instrument creating or evidencing the same or
the assumption or guarantee thereof expressly provides that such Indebtedness shall not be senior in right of payment to the Securities or expressly provides that such Indebtedness is pari passu or junior to the Securities and (b) any Indebtedness
between or among the Company and/or any of its subsidiaries, or any of the Company’s Affiliates. The term “Senior Debt” shall include, without limitation, all Designated Senior Debt. 
  
 “Significant Subsidiary” means any Subsidiary which is a
“significant subsidiary” within the meaning of Rule 405 under the Securities Act. 
  
 “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 2.17 hereof. 
  
 “Spin-off” has the meaning specified in Section 12.4(d) hereof. 
  
 “Stated Maturity” means the date specified in any Security
as the fixed date for the payment of principal on such Security or on which an installment of interest (including Liquidated Damages, if any) on such Security is due and payable. 
  
 “Subsidiary” means a corporation more than 50% of the outstanding voting stock of which is owned, directly
or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries. For the purposes of this definition only, “voting stock” means stock which ordinarily has voting power for the
election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency. 
  
 “Termination of Trading” means the occurrence of the Common Stock or any other common stock into which the Securities are then
convertible being neither listed for trading on a United States national securities exchange nor approved for listing on Nasdaq or any similar United States system of automated 

  

 -9- 

 
dissemination of quotations of securities prices or traded in over-the-counter securities markets, and no American Depositary Shares or similar instruments
for such common stock are so listed or approved for listing in the United States. 
  
 “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb), as in effect on the date of this Indenture; provided, however, that in the event the TIA is amended
after such date, “TIA” means, to the extent required by such amendment, the Trust Indenture Act of 1939, as so amended, or any successor statute. 
  
 “Trading Day” means a day during which trading in securities generally occurs on The New York Stock Exchange or, if the Common Stock is
not then listed on The New York Stock Exchange, on the principal other national or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on a national or regional securities exchange, on the
Nasdaq National Market or, if the Common Stock is not then quoted on the Nasdaq National Market, on the principal other market on which the Common Stock is traded. 
  
 “Transfer Agent” means any Person, which may be the Company, authorized by the Company to exchange or
register the transfer of Securities. 
  
 “Trigger
Event” has the meaning specified in Section 12.4(d) hereof. 
  
 “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter
“Trustee” shall mean such successor Trustee. 
  
 “U.S. Government Obligations” means: (1) direct obligations of the United States of America for the payment of which the full faith and credit of the United States of America is pledged or (2) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America and which, in either
case, are non-callable at the option of the issuer thereof. 
  
 “Vice President,” when used with respect to the Company, means any vice president, whether or not designated by a number or a word or words added before or after the title “vice president.” 
  
 SECTION 1.2. Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. 
  
 The following TIA terms used in this Indenture have the following meanings: 
  
 (i) “indenture securities” means the Securities; 
  
 (ii) “indenture security holder” means a Holder;

  
 (iii) “indenture to be qualified”
means this Indenture; 
  
 (iv) “indenture
trustee” or “institutional trustee” means the Trustee; and 
  
 (v) “obligor” on the Securities means the Company and any other obligor on the indenture securities. 
  

 -10- 

 All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to
another statute or defined by SEC rule have the meanings assigned to them by such definitions. 
  
 SECTION 1.3. Rules of Construction. For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires: 
  
 (1) the terms defined in this Article have the meanings
assigned to them in this Article and include the plural as well as the singular; 
  
 (2) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with accounting principles
generally accepted in the United States prevailing at the time of any relevant computation hereunder; and 
  
 (3) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture
as a whole and not to any particular Article, Section or other subdivision. 
  
 ARTICLE 2 
  
 THE
SECURITIES 
  
 SECTION 2.1. Title and Terms. The
Securities shall be known and designated as the “23⁄4% Senior Subordinated Convertible Notes due 2012” of the Company. The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is limited
to $125,000,000 (or $150,000,000 if the option set forth in Section 2(b) of the Purchase Agreement is exercised in full), except for securities authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of other
Securities pursuant to Section 2.7, 2.8, 2.9, 2.12, 7.5, 10.7, 11.1 or 12.2 hereof. The Securities shall be issuable in denominations of $1,000 or integral multiples thereof. 
  
 The Securities shall mature on May 16, 2012. 
  
 Interest shall accrue from May 18, 2004 at the Interest Rate until the principal thereof is paid or made available for
payment. Interest shall be payable semiannually in arrears on May 16 and November 16 of each year, commencing November 16, 2004. 
  
 Interest on the Securities shall be computed on the basis of a 360-day year of twelve 30-day months, and for any period shorter than a full semiannual
period for which interest is calculated, on the basis of a 30-day month, and for such periods of less than a month, the actual number of days elapsed over a 30-day month. 
  
 A Holder of any Security at the close of business on a Regular Record Date shall be entitled to receive interest (including
Liquidated Damages, if any) on such Security on the corresponding Interest Payment Date. If the Company is required by law to withhold any taxes with respect to a deemed distribution to a Holder resulting from a Conversion Rate adjustment, such
taxes may be withheld from interest payments made to such Holder on or after the date of such Conversion Price adjustment. 
  
 A Holder of any Security which is converted after the close of business on a Regular Record Date and prior to the corresponding Interest Payment Date
(other than any Security whose Maturity is prior to such Interest Payment Date) shall be entitled to receive interest (including Liquidated Damages, if any) on the principal amount of such Security on such Interest Payment Date, notwithstanding the
conversion of such Security prior to such Interest Payment Date. However, any such Holder which surrenders any such Security for conversion during the period between the close of business on such Regular Record Date and ending with the opening of
business on the corresponding Interest Payment Date shall be required to pay the Company an 

  

 -11- 

 
amount equal to the interest (including Liquidated Damages, if any) on the principal amount of such Security so converted (but excluding any overdue interest
on the principal amount of such Security so converted that exists at the time such Holder surrenders such Security for conversion), which is payable by the Company to such Holder on such Interest Payment Date, at the time such Holder surrenders such
Security for conversion. Notwithstanding the foregoing, any such Holder which surrenders for conversion any Security (a) which has been called for redemption by the Company in a notice of redemption given by the Company pursuant to Section 10.4
hereof on a Redemption Date after such Regular Record Date and on or prior to the next succeeding Interest Payment Date or (b) with respect to which the Company has specified a Repurchase Date that is after such Regular Record Date and on or prior
to the next succeeding Interest Payment Date, in either case, shall be entitled to receive (and retain) such interest (including Liquidated Damages, if any) and need not pay the Company an amount equal to the interest (including Liquidated Damages,
if any) on the principal amount of such Security so converted at the time such Holder surrenders such Security for conversion. 
  
 Principal of, and premium, if any, and interest on, Global Securities shall be payable to the Depositary in immediately available funds. 
  
 Principal and premium, if any, on Physical Securities shall be payable at the
office or agency of the Company maintained for such purpose, initially the Corporate Trust Office of the Trustee. Interest on Physical Securities will be payable by (i) U.S. Dollar check drawn on a bank located in the city where the Corporate Trust
Office of the Trustee is located mailed to the address of the Person entitled thereto as such address shall appear in the Register, or (ii) upon application to the Registrar not later than the relevant Record Date by a Holder of an aggregate
principal amount in excess of $5,000,000, wire transfer in immediately available funds. 
  
 The Securities shall be redeemable at the option of the Company as provided in Article 10 hereof. 
  
 The Securities shall have the repurchase rights exercisable at the option of Holders as provided in Article 11 hereof. 
  
 The Securities shall be convertible as provided in Article 12 hereof.

  
 The Securities shall be subordinated in right of payment to
Senior Debt of the Company as provided in Article 13 hereof. 
  
 SECTION 2.2. Form of Securities. The Securities and the Trustee’s certificate of authentication to be borne by such Securities shall be substantially in the form annexed hereto as Exhibit A, which is incorporated in and
made a part of this Indenture. The terms and provisions contained in the form of Security shall constitute, and are hereby expressly made, a part of this Indenture and to the extent applicable, the Company and the Trustee, by their execution and
delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. 
  
 Any of the Securities may have such letters, numbers or other marks of identification and such notations, legends and endorsements as the Officers
executing the same may approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any securities exchange or automated quotation system on which the Securities may be listed or designated for issuance, or to conform to usage. 
  
 The Securities will be offered and sold only to QIBs in reliance on Rule 144A
and shall be issued initially only in the form of one or more permanent Global Securities (each, a “Global Security”) in registered form without interest coupons. The Global Securities shall be: 
  
 (1) duly executed by the Company and authenticated by the
Trustee as hereinafter provided; 
  

 -12- 

 (2) registered in the name of the Depositary (or its nominee) for credit to the
respective accounts of the Holders at the Depositary; and 
  
 (3) deposited with the Trustee, as custodian for the Depositary. 
  
 The Global Securities shall be substantially in the form of Security set forth in Exhibit A annexed hereto (including the text and schedule called
for by footnotes 1 and 2 thereto). The aggregate principal amount of the Global Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary (or its nominee), in
accordance with the instructions given by the Holder thereof, as hereinafter provided. 
  
 Securities issued in exchange for interests in the Global Securities pursuant to Section 2.8(d) hereof shall be issued in the form of permanent definitive Securities (the “Physical Securities”) in
registered form without interest coupons. The Physical Securities shall be substantially in the form set forth in Exhibit A annexed hereto. 
  
 The Securities shall be typed, printed, lithographed or engraved or produced by any combination of these methods or may be produced in any other manner
permitted by the rules of any securities exchange on which the Securities may be listed, all as determined by the Officers executing such Securities, as evidenced by their execution of such Securities. 
  
 SECTION 2.3. Legends. 
  
 (a) Restricted Securities Legends. Each Security issued hereunder
shall, upon issuance, bear the legend set forth in Section 2.3(a)(i) or Section 2.3(a)(ii) (each, a “Restricted Securities Legend”), as the case may be, and such legend shall not be removed except as provided in Section 2.3(a)(iii).
Each Security that bears or is required to bear the Restricted Securities Legend set forth in Section 2.3(a)(i) (together with any Common Stock issued upon conversion of the Securities and required to bear the Restricted Securities Legend set forth
in Section 2.3(a)(ii), collectively, the “Restricted Securities”) shall be subject to the restrictions on transfer set forth in this Section 2.3(a) (including the Restricted Securities Legend set forth below), and the Holder of each
such Restricted Security, by such Holder’s acceptance thereof, shall be deemed to have agreed to be bound by all such restrictions on transfer. 
  
 As used in Section 2.3(a), the term “transfer” encompasses any sale, pledge, transfer or other disposition whatsoever of any Restricted
Security. 
  
 (i) Restricted Securities Legend
for Securities. Except as provided in Section 2.3(a)(iii), until two years after the original issuance date of any Security, any certificate evidencing such Security (and all securities issued in exchange therefor or substitution thereof, other
than Common Stock, if any, issued upon conversion thereof, which shall bear the legend set forth in Section 2.3(a)(ii), if applicable) shall bear a Restricted Securities Legend in substantially the following form: 
  
 THIS SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF
THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY, THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY NOR ANY
INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, 

  

 -13- 

 
SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR
NOT SUBJECT TO, REGISTRATION. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
  
 THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL
OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH CV THERAPEUTICS, INC. OR ANY AFFILIATE OF CV
THERAPEUTICS, INC. WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) ONLY (A) TO CV THERAPEUTICS, INC. OR ANY SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO AN INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(A)(1), (2) OR (7) UNDER THE SECURITIES ACT (“INSTITUTIONAL ACCREDITED INVESTOR”) THAT IS ACQUIRING THIS
SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION, AND THAT, PRIOR TO SUCH TRANSFER, DELIVERS TO THE COMPANY AND THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THE
SECURITY EVIDENCED HEREBY (THE FORM OF WHICH LETTER MAY BE OBTAINED BY THE TRUSTEE), (D) OUTSIDE THE U.S. IN A TRANSACTION COMPLYING WITH THE PROVISIONS OF RULE 904 UNDER THE SECURITIES ACT (E) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO CV THERAPEUTICS, INC.’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE
OR TRANSFER PURSUANT TO CLAUSE (F) ABOVE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON
THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 
  
 (ii) Restricted Securities Legend for Common Stock Issued
upon Conversion of the Securities. Except as provided in Section 2.3(a)(iii), until two years after the original issuance date of any Security, any stock certificate representing Common Stock issued upon conversion of such Security shall bear a
Restricted Securities Legend in substantially the following form: 
  
 THE COMMON STOCK EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), 

  

 -14- 

 
OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON
THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
  
 THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE EXPIRATION (THE
“RESALE RESTRICTION TERMINATION DATE”) OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE COMMON STOCK EVIDENCED HEREBY UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION) ONLY (A) TO CV THERAPEUTICS, INC. OR ANY
SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES
FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO AN INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE
501(A)(1), (2) OR (7) UNDER THE SECURITIES ACT (“INSTITUTIONAL ACCREDITED INVESTOR”) THAT IS ACQUIRING THIS SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION, AND THAT, PRIOR TO SUCH TRANSFER, DELIVERS TO THE COMPANY AND THE
TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THE SECURITY EVIDENCED HEREBY (THE FORM OF WHICH LETTER MAY BE OBTAINED BY THE TRUSTEE), (D) OUTSIDE THE U.S. IN A TRANSACTION
COMPLYING WITH THE PROVISIONS OF RULE 904 UNDER THE SECURITIES ACT (E) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT, SUBJECT TO CV THERAPEUTICS, INC.’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (F) ABOVE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED
UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 
  
 (iii) Removal of the Restricted Securities Legends. Each Security or share of Common Stock issued upon conversion of such Security shall bear the Restricted Securities Legend set forth in Section 2.3(a)(i) or
2.3(a)(ii), as the case may be, until the earlier of: 
  
 (A) two years after the original issuance date of such Security; 
  

 -15- 

 (B) such Security or Common Stock has been sold pursuant to a registration statement that
has been declared effective under the Securities Act (and which continues to be effective at the time of such sale); or 
  
 (C) such Common Stock has been issued upon conversion of Securities that have been sold pursuant to a registration statement that has been
declared effective under the Securities Act (and which continues to be effective at the time of such sale). 
  
 The Holder must give notice thereof to the Trustee and any transfer agent for the Common Stock, as applicable. 
  
 Notwithstanding the foregoing, the Restricted Securities
Legend may be removed if there is delivered to the Company such satisfactory evidence, which may include an opinion of independent counsel, as may be reasonably required by the Company that neither such legend nor the restrictions on transfer set
forth therein are required to ensure that transfers of such Security will not violate the registration requirements of the Securities Act. Upon provision of such satisfactory evidence, the Trustee, at the written direction of the Company, shall
authenticate and deliver in exchange for such Securities another Security or Securities having an equal aggregate principal amount that does not bear such legend. If the Restricted Securities Legend has been removed from a Security as provided
above, no other Security issued in exchange for all or any part of such Security shall bear such legend, unless the Company has reasonable cause to believe that such other Security is a “restricted security” within the meaning of Rule 144
and instructs the Trustee in writing to cause a Restricted Securities Legend to appear thereon. 
  
 Any Security (or security issued in exchange or substitution thereof) as to which such restrictions on transfer shall have expired in
accordance with their terms or as to which the conditions for removal of the Restricted Securities Legend set forth in Section 2.3(a)(i) as set forth therein have been satisfied may, upon surrender of such Security for exchange to the Registrar in
accordance with the provisions of Section 2.7 hereof, be exchanged for a new Security or Securities, of like tenor and aggregate principal amount, which shall not bear the Restricted Securities Legend required by Section 2.3(a)(i). 
  
 Any such Common Stock as to which such restrictions on
transfer shall have expired in accordance with their terms or as to which the conditions for removal of the Restricted Securities Legend set forth in Section 2.3(a)(ii) as set forth therein have been satisfied may, upon surrender of the certificates
representing such shares of Common Stock for exchange in accordance with the procedures of the transfer agent for the Common Stock, be exchanged for a new certificate or certificates for a like aggregate number of shares of Common Stock, which shall
not bear the Restricted Securities Legend required by Section 2.3(a)(ii). 
  
 (b) Global Security Legend. Each Global Security shall also bear the following legend on the face thereof: 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO CV THERAPEUTICS, INC. (OR ITS
SUCCESSOR) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, CONVERSION OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  

 -16- 

 SECTION 2.4. Execution, Authentication, Delivery and Dating. Two Officers shall execute the
Securities on behalf of the Company by manual or facsimile signature. If an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall be valid nevertheless. 
  
 At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities, and the Trustee in accordance with such Company Order
shall authenticate and deliver such Securities as in this Indenture provided and not otherwise. 
  
 Each Security shall be dated the date of its authentication. 
  
 No Security shall be entitled to any benefit under this Indenture, or be valid or obligatory for any purpose, unless there appears on such Security a
certificate of authentication substantially in the form provided for herein executed by or on behalf of the Trustee by manual signature, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered hereunder. 
  
 The
Trustee may appoint an authenticating agent or agents reasonably acceptable to the Company with respect to the Securities. Unless limited by the terms of such appointment, an authenticating agent may authenticate Securities whenever the Trustee may
do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. 
  
 SECTION 2.5. Registrar and Paying Agent. The Company shall maintain an office or agency where Securities may be presented for registration of
transfer or for exchange (the “Registrar”) and an office or agency where Securities may be presented for payment (the “Paying Agent”). The Registrar shall keep a register of the Securities (the
“Register”) and of their transfer and exchange. The Company may appoint one or more co-Registrars and one or more additional Paying Agents for the Securities. The term “Paying Agent” includes any additional paying agent
and the term “Registrar” includes any additional registrar. The Company may change any Paying Agent or Registrar without prior notice to any Holder. 
  

The Company will cause each Paying Agent (other than the Trustee) to execute and deliver to the Trustee an instrument in which such Paying Agent shall
agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will: 
  
 (1) hold all sums held by it for the payment of the principal of and premium, if any, or interest (including Liquidated Damages, if any)
on Securities in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as provided in this Indenture; 
  
 (2) give the Trustee notice of any Default by the Company in the making of any payment of principal and
premium, if any, or interest (including Liquidated Damages, if any); and 
  
 (3) at any time during the continuance of any such Default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent. 
  
 The Company shall give prompt written notice to the Trustee of the name and
address of any Agent who is not a party to this Indenture. If the Company fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The Company or any Affiliate of the Company may act as Paying Agent or
Registrar; provided, however, that none of the Company, its Subsidiaries or the Affiliates of the foregoing shall act: 
  
 (i) as Paying Agent in connection with redemptions, offers to purchase and discharges, as otherwise specified in this Indenture, and

  

 -17- 

 (ii) as Paying Agent or Registrar if a Default or Event of Default has occurred and is
continuing. 
  
 The Company hereby initially appoints the Trustee
as Registrar and Paying Agent for the Securities. 
  
 SECTION 2.6.
Paying Agent to Hold Assets in Trust. Not later than 11:00 a.m. (New York City time) on each due date of the principal, premium, if any, and interest (including Liquidated Damages, if any) on any Securities, the Company shall deposit with one
or more Paying Agents money in immediately available funds sufficient to pay such principal, premium, if any, and interest (including Liquidated Damages, if any) so becoming due. The Company at any time may require a Paying Agent to pay all money
held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Company) shall have no further liability for the money so paid over to the Trustee. 
  
 If the Company shall act as a Paying Agent, it shall, prior to or on each due date of the principal of and premium, if any,
or interest (including Liquidated Damages, if any) on any of the Securities, segregate and hold in trust for the benefit of the Holders a sum sufficient with monies held by all other Paying Agents, to pay the principal and premium, if any, or
interest (including Liquidated Damages, if any) so becoming due until such sums shall be paid to such Persons or otherwise disposed of as provided in this Indenture, and shall promptly notify the Trustee of its action or failure to act. 

 
 SECTION 2.7. General Provisions Relating to Transfer and Exchange.
The Securities are issuable only in registered form. A Holder may transfer a Security only by written application to the Registrar stating the name of the proposed transferee and otherwise complying with the terms of this Indenture. No such transfer
shall be effected until, and such transferee shall succeed to the rights of a Holder only upon, final acceptance and registration of the transfer by the Registrar in the Register. Furthermore, any Holder of a Global Security shall, by acceptance of
such Global Security, agree that transfers of beneficial interests in such Global Security may be effected only through a book-entry system maintained by the Holder of such Global Security (or its agent) and that ownership of a beneficial interest
in the Security shall be required to be reflected in a book-entry. Notwithstanding the foregoing, in the case of a Restricted Security, a beneficial interest in a Global Security being transferred in reliance on an exemption from the registration
requirements of the Securities Act other than in accordance with Rule 144, Rule 144A and Regulation S may only be transferred for a Physical Security. 
  
 When Securities are presented to the Registrar with a request to register the transfer or to exchange them for an equal aggregate principal amount of
Securities of other authorized denominations, the Registrar shall register the transfer or make the exchange as requested if its requirements for such transactions are met (including that such Securities are duly endorsed or accompanied by a written
instrument of transfer duly executed by the Holder thereof or by an attorney who is authorized in writing to act on behalf of the Holder). Subject to Section 2.4 hereof, to permit registrations of transfers and exchanges, the Company shall execute
and the Trustee shall authenticate Securities at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange or redemption of the Securities, but the Company may require payment of a sum sufficient to
cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer taxes or other similar governmental charge payable upon exchanges pursuant to Section 2.14, 7.5 or 10.7 hereof). 
  

 -18- 

 Neither the Company nor the Registrar shall be required to exchange or register a transfer of any
Securities: 
  
 (1) for a period of 15 Business
Days prior to the day of any selection of Securities for redemption under Article 10 hereof; 
  
 (2) so selected for redemption or, if a portion of any Security is selected for redemption, such portion thereof selected for redemption;
or 
  
 (3) surrendered for conversion or, if a
portion of any Security is surrendered for conversion, such portion thereof surrendered for conversion. 
  
 SECTION 2.8. Book-Entry Provisions for the Global Securities. 
  
 (a) The Global Securities initially shall 
  
 (i) be registered in the name of the Depositary (or a nominee thereof); 
  
 (ii) be delivered to the Trustee as custodian for such
Depositary; and 
  
 (iii) bear the Restricted
Securities Legend as set forth in Section 2.3(a)(i) hereof. 
  
 Members of, or participants in, the Depositary (“DTC Participants”) shall have no rights under this Indenture with respect to any Global Security held on their behalf by the Depositary, or the Trustee as its custodian, or
under such Global Security, and the Depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing
contained herein shall prevent the Company, the Trustee or any agent of the Company or Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and the DTC
Participants, the operation of customary practices governing the exercise of the rights of a Holder of any Security. 
  
 (b) The registered Holder of a Global Security may grant proxies and otherwise authorize any Person, including DTC Participants and Persons that may hold
interests through DTC Participants, to take any action which a Holder is entitled to take under this Indenture or the Securities. 
  
 (c) A Global Security may not be transferred, in whole or in part, to any Person other than the Depositary (or a nominee thereof), and no such transfer to
any such other Person may be registered. Beneficial interests in a Global Security may be transferred in accordance with the rules and procedures of the Depositary and the provisions of Section 2.9 hereof. 
  
 (d) If at any time: 
  
 (i) the Depositary notifies the Company in writing that it
is no longer willing or able to continue to act as Depositary for the Global Securities, or the Depositary ceases to be a “clearing agency” registered under the Exchange Act, and a successor depositary for the Global Securities is not
appointed by the Company within 90 days of such notice or cessation; 
  
 (ii) the Company, at its option, notifies the Trustee in writing that it elects to cause the issuance of the Securities in definitive form under this Indenture in exchange for all or any part of the Securities
represented by a Global Security or Global Securities; or 
  
 (iii) an Event of Default has occurred and is continuing and the Registrar has received a request from the Depositary for the issuance of Physical Securities in exchange for such Global Security or Global Securities,

  

 -19- 

 the Depositary shall surrender such Global Security or Global Securities to the Trustee for cancellation and the Company
shall execute, and the Trustee, upon receipt of an Officers’ Certificate and Company Order for the authentication and delivery of Securities, shall authenticate and deliver in exchange for such Global Security or Global Securities, Physical
Securities of like tenor as that of the Global Securities in an aggregate principal amount equal to the aggregate principal amount of such Global Security or Global Securities. Such Physical Securities shall be registered in such names as the
Depositary shall identify in writing as the beneficial owners of the Securities represented by such Global Security or Global Securities (or any nominees thereof). 
  
 Notwithstanding the foregoing, in connection with any transfer of beneficial interests in a Global Security to beneficial
owners pursuant to Section 2.8(d) hereof, the Registrar shall reflect on its books and records the date and a decrease in the principal amount of such Global Security in an amount equal to the principal amount of the beneficial interest in such
Global Security to be transferred. 
  
 SECTION 2.9. Special
Transfer Provisions. Unless a Security is transferred after the time period referred to in Rule 144(k) under the Securities Act or otherwise sold pursuant to a registration statement that has been declared effective under the Securities Act (and
which continues to be effective at the time of such sale), the following provisions shall apply. 
  
 With respect to the registration of any proposed transfer of Securities to a QIB in accordance with Rule 144A: 
  
 (i) if the Securities to be transferred consist of an
interest in the Global Securities, the transfer of such interest may be effected only through the book-entry system maintained by the Depositary; and 
  
 (ii) if the Securities to be transferred consist of Physical Securities, the Registrar shall register the transfer if such transfer is
being made by a proposed transferor who has checked the box provided on the form of Security stating, or has otherwise advised the Company and the Registrar in writing, that the sale has been made in compliance with the provisions of Rule 144A to a
transferee who has signed the certification provided on the form of Security stating or has otherwise advised the Company and the Registrar in writing that: 
  
 (A) it is purchasing the Securities for its own account or an account with respect to which it exercises sole investment discretion, in
each case for investment and not with a view to distribution; 
  
 (B) it and any such account is a QIB within the meaning of Rule 144A; 
  
 (C) it is aware that the sale to it is being made in reliance on Rule 144A; 
  
 (D) it acknowledges that it has received such information regarding the Company as it has requested pursuant
to Rule 144A or has determined not to request such information; and 
  
 (E) it is aware that the transferor is relying upon its foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  
 In addition, the Registrar shall reflect on its books and records the date and an increase in the principal amount of the
Global Securities in an amount equal to the principal amount of the Physical Securities to be transferred, and the Trustee shall cancel the Physical Securities so transferred. 
  

 -20- 

 By its acceptance of any Security bearing the Restricted Securities Legend, each Holder of such a
Security acknowledges the restrictions on transfer of such Security set forth in this Indenture and agrees that it will transfer such Security only as provided in this Indenture. The Registrar shall not register a transfer of any Security unless
such transfer complies with the restrictions on transfer of such Security set forth in this Indenture. The Registrar shall be entitled to receive and rely on written instructions from the Company verifying that such transfer complies with such
restrictions on transfer. In connection with any transfer of Securities, each Holder agrees by its acceptance of the Securities to furnish the Registrar or the Company such certifications, legal opinions or other information as either of them may
reasonably require to confirm that such transfer is being made pursuant to an exemption from, or a transaction not subject to, the registration requirements of the Securities Act; provided, however, that the Registrar shall not be
required to determine (but may rely on a determination made by the Company with respect to) the sufficiency of any such certifications, legal opinions or other information. 
  
 The Registrar shall retain copies of all letters, notices and other written communications received pursuant to Section 2.8
hereof or this Section 2.9. The Company shall have the right to inspect and make copies of all such letters, notices or other written communications at any reasonable time upon the giving of reasonable written notice to the Registrar. 
  
 SECTION 2.10. Holder Lists. The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the names and addresses of Holders and shall otherwise comply with Section 312(a) of the TIA. If the Trustee is not the Registrar, the Company shall furnish to the Trustee
prior to or on each Interest Payment Date and at such other times as the Trustee may request in writing a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Holders relating to such Interest
Payment Date or request, as the case may be. 
  
 SECTION 2.11.
Persons Deemed Owners. The Company, the Trustee and any agent of the Company or the Trustee may treat the registered Holder of a Global Security as the absolute owner of such Global Security for the purpose of receiving payment thereof or on
account thereof and for all other purposes whatsoever, whether or not such Security be overdue, and notwithstanding any notice of ownership or writing thereon, or any notice of previous loss or theft or other interest therein. The Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name any Security is registered as the owner of such Security for the purpose of receiving payment of principal of and premium, if any, and interest (including
Liquidated Damages, if any) on such Security and for all other purposes whatsoever, whether or not such Security be overdue, and notwithstanding any notice of ownership or writing thereon, or any notice of previous loss or theft or other interest
therein. 
  
 SECTION 2.12. Mutilated, Destroyed, Lost or Stolen
Securities. If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of like tenor and principal amount and bearing a number not
contemporaneously outstanding. 
  
 If there is delivered to the
Company and the Trustee 
  
 (1) evidence to their
satisfaction of the destruction, loss or theft of any Security, and 
  
 (2) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, 
  
 then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute and, upon request,
the Trustee shall authenticate and deliver, in 

  

 -21- 

 
lieu of any such destroyed, lost or stolen Security, a new Security of like tenor and principal amount and bearing a number not contemporaneously
outstanding. 
  
 In case any such mutilated, destroyed, lost or
stolen Security has become or is about to become due and payable, the Company in its discretion, but subject to any conversion rights, may, instead of issuing a new Security, pay such Security, upon satisfaction of the condition set forth in the
preceding paragraph. 
  
 Upon the issuance of any new Security
under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith. 
  
 Every new Security issued pursuant to this Section
in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and such new Security
shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities duly issued hereunder. 
  
 The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities. 
  
 SECTION 2.13. Treasury Securities. In determining whether the Holders of the requisite principal amount of Outstanding Securities are present at a meeting of Holders for quorum purposes or have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Securities owned by the Company or any Affiliate of the Company shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected
in relying upon any such determination as to the presence of a quorum or upon any such request, demand, authorization, direction, notice, consent or waiver, only such Securities of which the Trustee has received written notice and are so owned shall
be so disregarded. 
  
 SECTION 2.14. Temporary Securities.
Pending the preparation of Securities in definitive form, the Company may execute and the Trustee shall, upon written request of the Company, authenticate and deliver temporary Securities (printed or lithographed). Temporary Securities shall be
issuable in any authorized denomination, and substantially in the form of the Securities in definitive form but with such omissions, insertions and variations as may be appropriate for temporary Securities, all as may be determined by the Company.
Every such temporary Security shall be executed by the Company and authenticated by the Trustee upon the same conditions and in substantially the same manner, and with the same effect, as the Securities in definitive form. Without unreasonable
delay, the Company will execute and deliver to the Trustee Securities in definitive form (other than in the case of Securities in global form) and thereupon any or all temporary Securities (other than any such Securities in global form) may be
surrendered in exchange therefor, at each office or agency maintained by the Company pursuant to Section 9.2 and the Trustee shall authenticate and deliver in exchange for such temporary Securities an equal aggregate principal amount of Securities
in definitive form. Such exchange shall be made by the Company at its own expense and without any charge therefor. Until so exchanged, the temporary Securities shall in all respects be entitled to the same benefits and subject to the same
limitations under this Indenture as Securities in definitive form authenticated and delivered hereunder. 
  
 SECTION 2.15. Cancellation. All securities surrendered for payment, redemption, repurchase, conversion, registration of transfer or exchange shall,
if surrendered to any Person other than the Trustee, be delivered to the Trustee. All Securities so delivered shall be canceled promptly by the Trustee, and no Securities shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Indenture. Upon written instructions of the Company, the Trustee shall dispose of the Securities in 

  

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accordance with its usual and customary policies and procedures and, thereafter, shall deliver a certificate of such cancellation to the Company. If the
Company shall acquire any of the Securities, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless the same are delivered to the Trustee for cancellation. 
  
 SECTION 2.16. CUSIP Numbers. The Company in issuing the Securities may
use “CUSIP” numbers (if then generally in use), and the Trustee shall use CUSIP numbers in notices of redemption or exchange as a convenience to Holders; provided, however, that any such notice shall state that no
representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any such notice and that reliance may be placed only on the other identification numbers printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of such numbers. The Company shall promptly notify the Trustee of any change in the CUSIP numbers. 
  

SECTION 2.17. Defaulted Interest. If the Company fails to make a payment of interest (including Liquidated Damages, if any) on any Security when
due and payable (“Defaulted Interest”), it shall pay such Defaulted Interest plus (to the extent lawful) any interest payable on the Defaulted Interest, in any lawful manner. It may elect to pay such Defaulted Interest, plus any
such interest payable on it, to the Persons who are Holders of such Securities on which the interest is due on a subsequent Special Record Date. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid
on each such Security. The Company shall fix any such Special Record Date and payment date for such payment. At least 15 days before any such Special Record Date, the Company shall mail to Holders affected thereby a notice that states the Special
Record Date, the Interest Payment Date, and amount of such interest (and such Liquidated Damages, if any) to be paid. 
  
 ARTICLE 3 
  
 SATISFACTION AND DISCHARGE 
  
 SECTION 3.1. Satisfaction and Discharge of Indenture. When: 
  
 (1) The Company shall deliver to the trustee for cancellation all Securities previously authenticated (other than any Securities which
have been destroyed, lost or stolen and in lieu of or in substitution for which other Securities shall have been authenticated and delivered) and not previously canceled, or 
  
 (2) (A) All the securities not previously canceled or delivered to the trustee for cancellation shall have
become due and payable, or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, 
  
 (B) The Company shall deposit with the Trustee, in trust,
cash in U.S. dollars and/or U.S. Government Obligations which through the payment of interest and principal in respect thereof, in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on
the Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered
to the Trustee, to pay principal of, premium, if any, or interest (including Liquidated Damages, if any) on all of the Securities (other than any Securities which shall have been mutilated, destroyed, lost or stolen and in lieu of or in substitution
for which other Securities shall have been authenticated and delivered) not previously canceled or delivered to the Trustee for cancellation, on the dates such payments of principal, premium, if any, or interest (including Liquidated Damages, if
any) are due to such date of maturity or redemption, as the case may be, and 
  

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 (C) The Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel to the effect that (x) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (y) since the date of execution of this Indenture, there has been a change in the applicable federal
income tax law, in the case of either clause (x) or (y) to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders will not recognize income, gain or loss for federal income tax purposes as a result of such deposit
and discharge and will be subject to federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit and discharge had not occurred, 
  
 and if, in the case of either clause (1) or (2), the Company shall also pay or cause to be
paid all other sums payable hereunder by the Company, then this Indenture shall cease to be of further effect (except as to: (i) remaining rights of registration of transfer, substitution and exchange and conversion of Securities, (ii) rights
hereunder of Holders to receive payments of principal of and premium, if any, and interest (including Liquidated Damages, if any) on the Securities and the other rights, duties and obligations of Holders, as beneficiaries hereof with respect to the
amounts, if any, so deposited with the Trustee, and (iii) the rights, obligations and immunities of the Trustee hereunder), and the Trustee, on demand of the Company accompanied by an Officers’ Certificate and an Opinion of Counsel and at the
cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture; provided, however, that the Company shall reimburse the Trustee for all amounts due the Trustee under
Section 5.8 hereof and for any costs or expenses thereafter reasonably and properly incurred by the Trustee and to compensate the Trustee for any services thereafter reasonably and properly rendered by the Trustee in connection with this Indenture
or the Securities. 
  
 SECTION 3.2. Deposited Monies To Be Held
in Trust. Subject to Section 3.3 hereof, all monies deposited with the Trustee pursuant to Section 3.1 hereof shall be held in trust and applied by it to the payment, notwithstanding the provisions of Article 13 hereof, either directly or
through any Paying Agent (including the Company if acting as its own Paying Agent), to the Holders of the particular Securities for the payment or redemption of which such monies have been deposited with the Trustee, of all sums due and to become
due thereon for principal, premium, if any, and interest (including Liquidated Damages, if any). All monies deposited with the Trustee pursuant to Section 3.1 hereof (and held by it or any Paying Agent) for the payment of Securities subsequently
converted shall be returned to the Company upon request of the Company. 
  
 SECTION 3.3. Return of Unclaimed Monies. The Trustee and the Paying Agent shall pay to the Company any money held by them for the payment of principal or premium, if any, or interest (including Liquidated Damages, if any) that
remains unclaimed for two years after the date upon which such payment shall have become due. After payment to the Company, Holders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned
property law designates another Person, and all liability of the Trustee and the Paying Agent with respect to such money shall cease. 
  
 ARTICLE 4 
  
 DEFAULTS AND REMEDIES 
  
 SECTION 4.1. Events of Default. An “Event of Default” with respect to the Securities occurs when any of the following occurs (whatever the reason for such Event of Default and whether it shall
be occasioned by the provisions of Article 13 hereof or be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental
body): 
  
 (a) the Company defaults in the
payment of the principal of or premium, if any, on any of the Securities when it becomes due and payable, at Maturity, upon redemption or exercise of a Repurchase Right or otherwise, whether or not such payment is prohibited by Article 13 hereof; or

  

 -24- 

 (b) the Company defaults in the payment of interest (including Liquidated Damages, if
any) on any of the Securities when it becomes due and payable and such default continues for a period of 30 days, whether or not such payment is prohibited by Article 13 hereof; provided, however, that the Company’s failure to pay
interest (including Liquidated Damages, if any) on any of the Securities within five Business Days of any Interest Payment Date prior to and including May 16, 2007 shall constitute an immediate Event of Default; or 
  
 (c) the Company fails to deliver shares of Common Stock,
together with cash instead of fractional shares, when those shares of Common Stock or cash instead of fractional shares is required to be delivered following conversion of a Security in accordance with Article 12, and that failure continues for 10
days; or 
  
 (d) the Company fails to perform or
observe any other term, covenant or agreement contained in the Securities or this Indenture and the failure continues for a period of 60 days after written notice of such failure, requiring the Company to remedy the same, shall have been given to
the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Securities; or 
  
 (e) (i) the Company fails to make any payment by the end of the applicable grace period, if any, after the maturity of any Indebtedness
for borrowed money in an amount in excess of $5,000,000 or (ii) there is an acceleration of any Indebtedness for borrowed money in an amount in excess of $5,000,000 because of a default with respect to such Indebtedness without such Indebtedness
having been discharged or such acceleration having been cured, waived, rescinded or annulled, in the case of either (i) or (ii) above, for a period of 30 days after written notice to the Company by the Trustee or to the Company and the Trustee by
Holders of at least 25% in aggregate principal amount of the Outstanding Securities; or 
  
 (f) the Company fails to provide the Company Notice in accordance with the terms of Section 11.3(a) hereof; or 
  
 (g) the entry by a court having jurisdiction in the premises
of (i) a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable U.S. federal or state bankruptcy, insolvency, reorganization or other similar law or (ii) a decree or order adjudging the Company
a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable U.S. federal or state law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order for relief or
any such other decree or order unstayed and in effect for a period of 60 consecutive days; or 
  
 (h) the commencement by the Company of a voluntary case or proceeding under any applicable U.S. federal or state bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by the Company to the entry of a decree or order for relief in respect of the Company in an involuntary case or
proceeding under any applicable U.S. federal or state bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against the Company, or the filing by the Company of a
petition or answer or consent seeking reorganization or relief under any applicable U.S. federal or state law, or the consent by the Company to the filing of such petition or to the appointment of or the taking possession 

  

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by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its property, or
the making by the Company of an assignment for the benefit of creditors, or the admission by the Company in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company expressly in
furtherance of any such action; or 
  
 (i) the
Pledge and Escrow Agreement ceases to be in full force and effect or enforceable prior to its expiration in accordance with its terms. 
  
 SECTION 4.2. Acceleration of Maturity; Rescission and Annulment. If an Event of Default with respect to Outstanding Securities (other than an Event
of Default specified in Section 4.1(g) or 4.1(h) hereof) occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the Outstanding Securities, by written notice to the Company, may declare due and payable
100% of the principal amount of all Outstanding Securities plus any accrued and unpaid interest to the date of payment. Upon a declaration of acceleration, such principal and accrued and unpaid interest to the date of payment shall be immediately
due and payable. 
  
 If an Event of Default specified in Section
4.1(g) or 4.1(h) hereof occurs, all unpaid principal of and accrued and unpaid interest (including Liquidated Damages, if any) on the Outstanding Securities shall become and be immediately due and payable, without any declaration or other act on the
part of the Trustee or any Holder. 
  
 The Holders of a majority
in aggregate principal amount of the Outstanding Securities by written notice to the Trustee may rescind and annul an acceleration and its consequences if: 
  
 (1) all existing Events of Default, other than the nonpayment of principal of or interest on the Securities which has become due solely
because of the acceleration, have been remedied, cured or waived, and 
  
 (2) the rescission would not conflict with any judgment or decree of a court of competent jurisdiction; 
  
 provided, however, that in the event such declaration of acceleration has been made based on the existence of an Event of Default under Section 4.1(e)
hereof and such Event of Default has been remedied, cured or waived in accordance with Section 4.1(e) hereof, then, without any further action by the Holders, such declaration of acceleration shall be rescinded automatically and the consequences of
such declaration shall be annulled. No such rescission or annulment shall affect any subsequent Default or impair any right consequent thereon. 
  
 SECTION 4.3. Other Remedies. If an Event of Default with respect to Outstanding Securities occurs and is continuing, the Trustee may pursue any
available remedy by proceeding at law or in equity to collect the payment of principal of or interest on the Securities or to enforce the performance of any provision of the Securities. 
  
 The Trustee may maintain a proceeding in which it may prosecute and enforce all rights of action and claims under this
Indenture or the Securities, even if it does not possess any of the Securities or does not produce any of them in the proceeding. 
  
 SECTION 4.4. Waiver of Past Defaults. The Holders, either (a) through the written consent of not less than a majority in aggregate principal amount
of the Outstanding Securities or (b) by the adoption of a resolution, at a meeting of Holders of the Outstanding Securities at which a quorum is present, by the Holders of at least a majority in aggregate principal amount of the Outstanding
Securities represented at such meeting, 

  

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may, on behalf of the Holders of all of the Securities, waive an existing Default or Event of Default, except a Default or Event of Default: 
  
 (1) in the payment of the principal of or premium, if any,
or interest (including Liquidated Damages, if any) on any Security (provided, however, that subject to Section 4.7 hereof, the Holders of a majority in aggregate principal amount of the Outstanding Securities may rescind an
acceleration and its consequences, including any related payment default that resulted from such acceleration); 
  
 (2) in respect of the right to convert any Security in accordance with Article 12; or 
  
 (3) in respect of a covenant or provision hereof which,
under Section 7.2 hereof, cannot be modified or amended without the consent of the Holder of each Outstanding Security affected. 
  
 Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture; provided, however, that no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon. 
  

SECTION 4.5. Control by Majority. The Holders, either (a) through the written consent of not less than a majority in aggregate principal amount
of the Outstanding Securities, or (b) by the adoption of a resolution, at a meeting of Holders of the Outstanding Securities at which a quorum is present, by the Holders of at least a majority in aggregate principal amount of the Outstanding
Securities represented at such meeting, shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee. However, the Trustee
may refuse to follow any direction that: 
  
 (1)
conflicts with any law or with this Indenture, 
  
 (2) the Trustee determines may be unduly prejudicial to the rights of the Holders not joining therein, or 
  
 (3) may expose the Trustee to personal liability. 
  

The Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction. 
  
 SECTION 4.6. Limitation on Suit. No Holder of any Security shall have
any right to pursue any remedy with respect to this Indenture or the Securities (including instituting any proceeding, judicial or otherwise, with respect to this Indenture or for the appointment of a receiver or trustee) unless: 
  
 (1) such Holder has previously given written notice to the
Trustee of an Event of Default that is continuing; 
  
 (2) the Holders of at least 25% in aggregate principal amount of the Outstanding Securities shall have made written request to the Trustee to pursue the remedy; 
  
 (3) such Holder or Holders have offered to the Trustee indemnity satisfactory to it against any costs,
expenses and liabilities incurred in complying with such request; 
  
 (4) the Trustee has failed to comply with the request for 60 days after its receipt of such notice, request and offer of indemnity; and 
  

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 (5) during such 60-day period, no direction inconsistent with such written request has
been given to the Trustee by the Holders of a majority in aggregate principal amount of the Outstanding Securities (or such amount as shall have acted at a meeting pursuant to the provisions of this Indenture); 
  
 provided, however, that no one or more of such Holders may use this Indenture
to prejudice the rights of another Holder or to obtain preference or priority over another Holder. 
  
 SECTION 4.7. Unconditional Rights of Holders to Receive Payment and to Convert. Notwithstanding any other provision in this Indenture, the Holder
of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and premium, if any, and interest (including Liquidated Damages, if any) on such Security on the Stated Maturity expressed in such
Security (or, in the case of redemption, on the Redemption Date, or in the case of the exercise of a Repurchase Right on the Repurchase Date) and to convert such Security in accordance with Article 12, and to bring suit for the enforcement of any
such payment on or after such respective dates and right to convert, and such rights shall not be impaired or affected without the consent of such Holder. 
  
 SECTION 4.8. Collection of Indebtedness and Suits for Enforcement by the Trustee. The Company covenants that if: 
  
 (1) a Default or Event of Default occurs in the payment of
any interest (including Liquidated Damages, if any) on any Security when such interest (including Liquidated Damages, if any) becomes due and payable and such Default or Event of Default continues for a period of 30 days, or 
  
 (2) a Default or Event of Default occurs in the payment of
the principal of or premium, if any, on any Security at the Maturity thereof, the Company shall, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable (as expressed therein or
as a result of any acceleration effected pursuant to Section 4.2 hereof) on such Securities for principal and premium, if any, and interest (including Liquidated Damages, if any) and, to the extent that payment of such interest shall be legally
enforceable, interest on any overdue principal and premium, if any, and on any overdue interest (including Liquidated Damages, if any), in each case at the Interest Rate, and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
  
 If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company and collect the moneys adjudged or decreed to be payable in the manner
provided by law out of the property of the Company, wherever situated. 
  
 If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy. 
  
 SECTION 4.9. Trustee May File Proofs of Claim. In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or the property of the Company or its creditors, the Trustee (irrespective of whether
the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest
(including Liquidated Damages, if any)) shall be entitled and 

  

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empowered, by intervention in such proceeding or otherwise, (1) to file and prove a claim for the whole amount of principal and premium, if any, and interest
(including Liquidated Damages, if any) owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders of Securities allowed in such judicial proceeding, and (2) to collect and receive any moneys or other property payable or deliverable on
any such claim and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceedings is hereby authorized by each Holder of Securities to make such payments to
the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders of Securities, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel and any other amounts due the Trustee under Section 5.8. 
  
 Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to or accept, or adopt on behalf of any Holder of a Security, any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder of a Security in any such proceeding. 
  
 SECTION 4.10. Restoration of Rights and Remedies. If the Trustee or any Holder of a Security has instituted any
proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders of Securities shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall
continue as though no such proceeding had been instituted. 
  
 SECTION 4.11. Rights and Remedies Cumulative. Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 2.12, no right or remedy
conferred in this Indenture upon or reserved to the Trustee or to the Holders of Securities is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy. 
  
 SECTION 4.12. Delay or
Omission Not Waiver. No delay or omission of the Trustee or of any Holder of any Security to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of
Default or any acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders of Securities may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders
of Securities, as the case may be. 
  
 SECTION 4.13.
Application of Money Collected. Subject to Article 13, any money and property collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money and property on account of principal or premium, if any, or interest (including Liquidated Damages, if any), upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon
surrender thereof if fully paid: 
  
 FIRST: To
the payment of all amounts due the Trustee; 
  
 SECOND: To the payment of the amounts then due and unpaid for principal of and premium, if any, and interest (including Liquidated Damages, if any) on the Securities and coupons in respect 

  

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of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and
payable on such Securities for principal and premium, if any, and interest (including Liquidated Damages, if any), respectively; and 
  
 THIRD: Any remaining amounts shall be repaid to the Company. 
  
 SECTION 4.14. Undertaking for Costs. All parties to this Indenture agree, and each Holder of any Security by such
Holder’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Company, to any suit
instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in aggregate principal amount of the Outstanding Securities, or to any suit instituted by any Holder of any Security for the
enforcement of the payment of the principal of or premium, if any, or interest (including Liquidated Damages, if any) on any Security on or after the Stated Maturity expressed in such Security (or, in the case of redemption or exercise of a
repurchase right, on or after the Redemption Date) or for the enforcement of the right to convert any Security in accordance with Article 12. 
  
 SECTION 4.15. Waiver of Stay or Extension Laws. The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim to take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and
the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law had been enacted. 
  
 ARTICLE 5 
  
 THE TRUSTEE

  
 SECTION 5.1. Certain Duties and Responsibilities.

  
 (a) Except during the continuance of an Event of Default,

  
 (1) The Trustee undertakes to perform such
duties and only such duties as are specifically set forth in this Indenture or the TIA, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 
  
 (2) In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; provided, however, that in the case of any such certificates
or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall examine the certificates or opinions to determine whether or not, on their face, they conform to the requirements of this Indenture
(but need not investigate or confirm the accuracy of any facts stated therein). 
  
 (b) In case an Event of Default actually known to a Responsible Officer of the Trustee has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this 

  

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Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs. 
  
 (c) No provision of this
Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that: 
  
 (1) This paragraph (c) shall not be construed to limit the effect of paragraph (a) of this Section 5.1;

  
 (2) The Trustee shall not be liable for any
error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; and 
  
 (3) The Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good
faith in accordance with a direction received by it of the Holders of a majority in principal amount of the Outstanding Securities (or such lesser amount as shall have acted at a meeting pursuant to the provisions of this Indenture) relating to the
time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture. 
  
 (d) Whether or not herein expressly so provided, every provision of this Indenture relating to the conduct or affecting the
liability of or affording protection to the Trustee shall be subject to the provisions of this Section 5.1. 
  
 (e) No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers. The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against any loss, liability, cost or expense
(including, without limitation, reasonable fees of counsel). 
  
 (f) The Trustee shall not be obligated to pay interest on any money or other assets received by it unless otherwise agreed in writing with the Company. Assets held in trust by the Trustee need not be segregated from other funds except to
the extent required by law. 
  
 (g) The Trustee shall not be bound
to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, coupon, other evidence of indebtedness or other
paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Company, personally or by agent or attorney at the sole cost of the Company, and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation.

  
 (h) The Trustee shall not be deemed to have notice or actual
knowledge of any Event of Default or a Registration Default (as such term is defined in the Registration Rights Agreement) or the obligation of the Company to pay Liquidated Damages unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless written notice of any event which is in fact a Default is received by the Trustee pursuant to Section 14.2 hereof, and such notice references the Securities and this Indenture. 
  
 (i) The rights, privileges, protections, immunities and benefits given to the
Trustee hereunder, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable 

  

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by, the Trustee in each of its capacities hereunder, and each Paying Agent, authenticating agent, Conversion Agent or Registrar acting hereunder. 

 
 SECTION 5.2. Certain Rights of Trustee. Subject to the provisions
of Section 5.1 hereof and subject to Sections 315(a) through (d) of the TIA: 
  
 (1) The Trustee may rely on any document believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document. 

 
 (2) Before the Trustee acts or refrains from acting, it
may require an Officers’ Certificate or an Opinion of Counsel, or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on the Officers’ Certificate or Opinion of Counsel 
  
 (3) The Trustee may act through attorneys and agents and
shall not be responsible for the misconduct or negligence of any attorney or agent appointed with due care. 
  
 (4) The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith which it believed to be authorized or
within the discretion or rights or powers conferred upon it by this Indenture, unless the Trustee’s conduct constitutes negligence. 
  
 (5) The Trustee may consult with counsel of its selection and the advice of such counsel as to matters of law shall be full and complete
authorization and protection in respect of any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel. 
  
 (6) Unless otherwise specifically provided in this Indenture, any demand, request, direction or notice from
the Company shall be sufficient if signed by an Officer of the Company. 
  
 (7) The permissive rights of the Trustee to do things enumerated in this Indenture shall not be construed as a duty unless so specified herein. 
  
 SECTION 5.3. Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the owner
or pledgee of Securities and may otherwise deal with the Company or any Affiliate of the Company with the same rights it would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting interest (as such term is
defined in Section 310(b) of the TIA), it must eliminate such conflict within 90 days, apply to the SEC for permission to continue as trustee (to the extent permitted under Section 310(b) of the TIA) or resign. Any agent may do the same with like
rights and duties. The Trustee is also subject to Sections 5.11 and 5.12 hereof. 
  
 SECTION 5.4. Money Held in Trust. Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest
on any money received by it hereunder except as otherwise expressly agreed with the Company. 
  
 SECTION 5.5. Trustee’s Disclaimer. The recitals contained herein and in the Securities (except for those in the certificate of authentication) shall be taken as the statements of the Company, and the
Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity, sufficiency or priority of this Indenture or of the Securities. The Trustee shall not be accountable for the use or application by the
Company of Securities or the proceeds thereof. 
  

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 SECTION 5.6. Notice of Defaults. Within 90 days after the occurrence of any Default or Event of
Default hereunder of which the Trustee has received written notice, the Trustee shall give notice to Holders pursuant to Section 14.2 hereof, unless such Default or Event of Default shall have been cured or waived; provided, however,
that, except in the case of a Default or Event of Default in the payment of the principal of or premium, if any, or interest (including Liquidated Damages, if any), or in the payment of any redemption or repurchase obligation, on any Security, the
Trustee shall be protected in withholding such notice if and so long as Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the interest of the Holders. 
  
 SECTION 5.7. Reports by Trustee to Holders. The Trustee shall transmit
to Holders such reports concerning the Trustee and its actions under this Indenture as may be required by Section 313 of the TIA at the times and in the manner provided by the TIA. 
  
 A copy of each report at the time of its mailing to Holders shall be filed with the SEC, if required, and each stock
exchange, if any, on which the Securities are listed. The Company shall promptly notify the Trustee when the Securities become listed on any stock exchange. 
  
 SECTION 5.8. Compensation and Indemnification. The Company covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be
entitled to, reasonable compensation (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) and the Company covenants and agrees to pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by it or on its behalf in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all
agents and other persons not regularly in its employ), except to the extent that any such expense, disbursement or advance is due to its negligence or bad faith. When the Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 4.1 hereof, the expenses (including the reasonable charges and expenses of its counsel) and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law. The Company
also covenants to indemnify the Trustee and its officers, directors, employees and agents for, and to hold such Persons harmless against, any loss, liability or expense incurred by them, arising out of or in connection with the acceptance or
administration of this Indenture or the trusts hereunder or the performance of their duties hereunder, including the costs and expenses of defending themselves against or investigating any claim of liability in the premises, except to the extent
that any such loss, liability or expense was due to the negligence or willful misconduct of such Persons. The obligations of the Company under this Section 5.8 to compensate and indemnify the Trustee and its officers, directors, employees and agents
and to pay or reimburse such Persons for expenses, disbursements and advances shall constitute additional indebtedness hereunder and shall survive the satisfaction and discharge of this Indenture or the earlier resignation or removal of the Trustee.
Such additional indebtedness shall be a senior claim to that of the Securities upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the Holders of particular Securities, and the
Securities are hereby subordinated to such senior claim. “Trustee” for purposes of this Section 5.8 shall include any predecessor Trustee, but the negligence or willful misconduct of any Trustee shall not affect the indemnification of any
other Trustee. 
  
 SECTION 5.9. Replacement of Trustee. A
resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section 5.9. 
  
 The Trustee may resign and be discharged from the trust hereby created by so
notifying the Company in writing. The Holders of at least a majority in aggregate principal amount of Outstanding Securities may remove the Trustee by so notifying the Trustee and the Company in writing. The Company must remove the Trustee if:

  
 (i) the Trustee fails to comply with Section
5.11 hereof or Section 310 of the TIA; 
  

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 (ii) the Trustee becomes incapable of acting; 
  
 (iii) the Trustee is adjudged a bankrupt or an insolvent or
an order for relief is entered with respect to the Trustee under any Bankruptcy Law; or 
  
 (iv) a Custodian or public officer takes charge of the Trustee or its property. 
  
 If the Trustee resigns or is removed or if a vacancy exists in the office of
the Trustee for any reason, the Company shall promptly appoint a successor Trustee. The Trustee shall be entitled to payment of its fees and reimbursement of its expenses while acting as Trustee. Within one year after the successor Trustee takes
office, the Holders of at least a majority in aggregate principal amount of Outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company. 
  
 Any Holder may petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor Trustee if the Trustee fails to comply with Section 5.11 hereof. 
  
 If an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of such notice of
resignation or removal, the resigning or removed Trustee, as the case may be, may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Trustee. 
  
 A successor Trustee shall deliver a written acceptance of its appointment to
the retiring Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The Company
shall mail a notice of the successor Trustee’s succession to the Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee. Notwithstanding replacement of the Trustee pursuant to this
Section 5.9, the Company’s obligations under Section 5.8 hereof shall continue for the benefit of the retiring Trustee with respect to expenses, losses and liabilities incurred by it prior to such replacement. 
  
 SECTION 5.10. Successor Trustee by Merger, Etc. Subject to Section
5.11 hereof, if the Trustee consolidates with, merges or converts into, or transfers or sells all or substantially all of its corporate trust business to, another corporation or national banking association, the successor entity without any further
act shall be the successor Trustee as to the Securities. 
  
 SECTION 5.11. Corporate Trustee Required; Eligibility. The Trustee shall at all times satisfy the requirements of Sections 310(a)(1), (2) and (5) of the TIA. The Trustee shall at all times have (or, in the case of a corporation
included in a bank holding company system, the related bank holding company shall at all times have) a combined capital and surplus of at least $100 million as set forth in its (or its related bank holding company’s) most recent published
annual report of condition. The Trustee is subject to Section 310(b) of the TIA. 
  
 SECTION 5.12. Collection of Claims Against the Company. The Trustee is subject to Section 311(a) of the TIA, excluding any creditor relationship listed in Section 311(b) of the TIA. A Trustee who has resigned
or been removed shall be subject to Section 311(a) of the TIA to the extent indicated therein. 
  

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 ARTICLE 6 
  

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 
  
 SECTION 6.1. Company May Consolidate, Etc. Only on Certain Terms. The Company shall not consolidate with or merge into any other Person or convey,
transfer or lease its properties and assets substantially as an entirety to any Person, and the Company shall not permit any Person to consolidate with or merge into the Company or convey, transfer or lease its properties and assets substantially as
an entirety to the Company, unless: 
  
 (1) in
the event that the Company shall consolidate with or merge into another Person or convey, transfer or lease its properties and assets substantially as an entirety to any Person, the Person formed by such consolidation or into which the Company is
merged or the Person which acquires by conveyance or transfer, or which leases, the properties and assets of the Company substantially as an entirety shall be a corporation, limited liability company, partnership or trust organized and validly
existing under the laws of the United States of America, any State thereof or the District of Columbia and, if the entity surviving such transaction or transferee entity is not the Company, then such surviving or transferee entity shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of and premium, if any and interest (including Liquidated Damages, if any) on all
the Securities and the performance of every covenant of this Indenture on the party of the Company to be performed or observed and shall have provided for conversion rights in accordance with Section 12.11 hereof; 
  
 (2) at the time of consummation of such transaction, no
Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have happened and be continuing; and 
  
 (3) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture comply with this Article and that all conditions precedent herein provided for
relating to such transaction have been complied with. 
  
 SECTION
6.2. Successor Substituted. Upon any consolidation or merger by the Company with or into any other Person or any conveyance, transfer or lease of the properties and assets of the Company substantially as an entirety to any Person, in
accordance with Section 6.1 hereof, the successor Person formed by such consolidation or into which the Company is merged or to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right
and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein, and thereafter, except in the case of a lease to another Person, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities. 
  
 ARTICLE 7 
  
 AMENDMENTS, SUPPLEMENTS AND
WAIVERS 
  
 SECTION 7.1. Without Consent of Holders of
Securities. Without the consent of any Holders of Securities, the Company, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may amend this Indenture and the Securities to: 
  
 (a) add to the covenants of the Company for the benefit of
the Holders of Securities; 
  

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 (b) surrender any right or power herein conferred upon the Company; 
  
 (c) make provision with respect to the conversion rights of
Holders of Securities pursuant to Section 12.11 hereof; 
  
 (d) provide for the assumption of the Company’s obligations to the Holders of Securities in the case of a merger, consolidation, conveyance, transfer or lease pursuant to Article 6 hereof; 
  
 (e) increase the Conversion Rate; provided,
however, that such increase in the Conversion Rate shall not adversely affect the interest of the Holders of Securities (after taking into account tax and other consequences of such increase) in any material respect; 
  
 (f) comply with the requirements of the SEC in order to
effect or maintain the qualification of this Indenture under the TIA; 
  
 (g) make any changes or modifications to this Indenture necessary in connection with the registration of any Securities under the Securities Act as contemplated in the Registration Rights Agreement; provided,
however, that such action pursuant to this clause (g) does not adversely affect the interests of the Holders of Securities in any material respect; 
  
 (h) cure any ambiguity, correct or supplement any provision herein which may be inconsistent with any other provision herein or which is
otherwise defective, or make any other provisions with respect to matters or questions arising under this Indenture which the Company and the Trustee may deem necessary or desirable and which shall not be inconsistent with the provisions of this
Indenture; provided, however, that such action pursuant to this clause (h) does not, in the good faith opinion of the Board of Directors and the Trustee, adversely affect the interests of the Holders of Securities in any material
respect; 
  
 (i) add or modify any other
provisions with respect to matters or questions arising under this Indenture which the Company and the Trustee may deem necessary or desirable and which shall not be inconsistent with the provisions of this Indenture, provided,
however, that such action pursuant to this clause (i) does not adversely affect the interests of the Holders of Securities in any material respect; or 
  

(j) make provision for the establishment of a book-entry system in which Holders would have the option to participate for the clearance
and settlement of transactions in Securities originally issued in definitive form. 
  
 SECTION 7.2. With Consent of Holders of Securities. Except as provided below in this Section 7.2, this Indenture or the Securities may be amended or supplemented, and noncompliance by the Company in any
particular instance with any provision of this Indenture or the Securities may be waived, in each case (i) with the written consent of the Holders of at least a majority in aggregate principal amount of the Outstanding Securities or (ii) by the
adoption of a resolution, at a meeting of Holders of the Outstanding Securities at which a quorum is present, by the Holders of a majority in aggregate principal amount of the Outstanding Securities represented at such meeting. 
  
 Without the written consent or the affirmative vote of each Holder of
Securities affected, an amendment or waiver under this Section 7.2 may not: 
  
 (a) change the Stated Maturity of the principal of, or any installment of interest (including Liquidated Damages, if any) on, any Security; 
  
 (b) reduce the principal amount of or premium, if any, on any Security; 
  

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 (c) reduce the Interest Rate or interest (including Liquidated Damages, if any) on any
Security; 
  
 (d) change the currency of payment
of principal of, premium, if any, or interest (including Liquidated Damages, if any) on any Security; 
  
 (e) impair the right of any Holder to institute suit for the enforcement of any payment on or with respect to, or the conversion of, any
Security; 
  
 (f) modify the obligation of the
Company to maintain an office or agency in The City of New York pursuant to Section 9.2 hereof; 
  
 (g) except as permitted by Section 12.11 hereof, adversely affect the right to convert any Security as provided in Article 12 hereof;

  
 (h) adversely affect the Repurchase Right;

  
 (i) modify the subordination provisions of
the Securities in a manner adverse to the Holders of Securities; 
  
 (j) modify any of the provisions of this Section, Section 4.4 or Section 14.11, except to increase any percentage contained herein or therein or to provide that certain other provisions of this Indenture cannot be
modified or waived without the consent of the Holder of each Outstanding Security affected thereby; or 
  
 (k) reduce the requirements of Section 8.4 hereof for quorum or voting, or reduce the percentage in aggregate principal amount of the
Outstanding Securities the consent of whose Holders is required for any such supplemental indenture or the consent of whose Holders is required for any waiver provided for in this Indenture. 
  
 It shall not be necessary for any Act of Holders of Securities under this
Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
  
 SECTION 7.3. Compliance with Trust Indenture Act. Every amendment to this Indenture or the Securities shall be set forth in a supplemental
indenture that complies with the TIA as then in effect. 
  
 SECTION 7.4. Revocation of Consents and Effect of Consents or Votes. Until an amendment, supplement or waiver becomes effective, a written consent to it by a Holder is a continuing consent by the Holder and every subsequent Holder of
a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security; provided, however, that unless a record date shall have been
established, any such Holder or subsequent Holder may revoke the consent as to its Security or portion of a Security if the Trustee receives written notice of revocation before the date the amendment, supplement or waiver becomes effective.

  
 An amendment, supplement or waiver becomes effective on
receipt by the Trustee of written consents from or affirmative votes by, as the case may be, the Holders of the requisite percentage of aggregate principal amount of the Outstanding Securities, and thereafter shall bind every Holder of Securities;
provided, however, if the amendment, supplement or waiver makes a change described in any of clauses (a) through (k) of Section 7.2 hereof, the amendment, supplement or waiver shall bind only each Holder of a Security which has
consented to it or voted for it, as the case may be, and every subsequent Holder of a Security or portion of 

  

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a Security that evidences the same indebtedness as the Security of the consenting or affirmatively voting, as the case may be, Holder. 
  
 SECTION 7.5. Notation on or Exchange of Securities. If an amendment,
supplement or waiver changes the terms of a Security: 
  
 (a) the Trustee may require the Holder of a Security to deliver such Security to the Trustee, the Trustee may place an appropriate notation on the Security about the changed terms and return it to the Holder and the Trustee may place an
appropriate notation on any Security thereafter authenticated; or 
  
 (b) if the Company or the Trustee so determines, the Company in exchange for the Security shall issue and the Trustee shall authenticate a new Security that reflects the changed terms. 
  
 Failure to make the appropriate notation or issue a new Security shall not
affect the validity and effect of such amendment, supplement or waiver. 
  
 SECTION 7.6. Trustee to Sign Amendment, Etc. The Trustee shall sign any amendment authorized pursuant to this Article 7 if the amendment does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If the
amendment does adversely affect the rights, duties, liabilities or immunities of the Trustee, the Trustee may but need not sign it. In signing or refusing to sign such amendment, the Trustee shall be entitled to receive and shall be fully protected
in relying upon an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that such amendment is authorized or permitted by this Indenture. 
  

ARTICLE 8 
  
 MEETING OF HOLDERS OF SECURITIES 
  
 SECTION 8.1. Purposes for Which Meetings May Be Called. A meeting of Holders of Securities may be called at any time and from time to time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by this Indenture to be made, given or taken by Holders of Securities. 
  
 Notwithstanding anything contained in this Article 8, the Trustee may, during the pendency of a Default or an Event of Default, call a meeting of Holders
of Securities in accordance with its standard practices. 
  
 SECTION 8.2. Call Notice and Place of Meetings. 
  
 (a) The Trustee may at any time call a meeting of Holders of Securities for any purpose specified in Section 8.1 hereof, to be held at such time and at such place in The City of New York. Notice of every meeting of Holders of Securities,
setting forth the time and the place of such meeting, in general terms the action proposed to be taken at such meeting and the percentage of the principal amount of the Outstanding Securities which shall constitute a quorum at such meeting, shall be
given, in the manner provided in Section 14.2 hereof, not less than 21 nor more than 180 days prior to the date fixed for the meeting. 
  
 (b) In case at any time the Company, pursuant to a Board Resolution, or the Holders of at least 10% in principal amount of the Outstanding Securities
shall have requested the Trustee to call a meeting of the Holders of Securities for any purpose specified in Section 8.1 hereof, by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee
shall not have made the first publication of the notice of such meeting within 21 days after receipt of such request or shall not thereafter proceed to cause the meeting to be held as provided herein, then the Company or the Holders of Securities in

  

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the amount specified, as the case may be, may determine the time and the place in The City of New York for such meeting and may call such meeting for such
purposes by giving notice thereof as provided in paragraph (a) of this Section. 
  
 SECTION 8.3. Persons Entitled to Vote at Meetings. To be entitled to vote at any meeting of Holders of Securities, a Person shall be (a) a Holder of one or more Outstanding Securities or (b) a Person appointed
by an instrument in writing as proxy for a Holder or Holders of one or more Outstanding Securities by such Holder or Holders. The only Persons who shall be entitled to be present or to speak at any meeting of Holders shall be the Persons entitled to
vote at such meeting and their counsel, any representatives of the Trustee and its counsel and any representatives of the Company and its counsel. 
  
 SECTION 8.4. Quorum; Action. The Persons entitled to vote a majority in principal amount of the Outstanding Securities shall constitute a quorum.
In the absence of a quorum within 30 minutes of the time appointed for any such meeting, the meeting shall, if convened at the request of Holders of Securities, be dissolved. In any other case, the meeting may be adjourned for a period of not less
than 10 days as determined by the chairman of the meeting prior to the adjournment of such meeting. In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be further adjourned for a period of not less than 10 days as
determined by the chairman of the meeting prior to the adjournment of such adjourned meeting. Notice of the reconvening of any adjourned meeting shall be given as provided in Section 8.2(a) hereof, except that such notice need be given only once and
not less than five days prior to the date on which the meeting is scheduled to be reconvened. 
  
 At a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid, any resolution and all matters (except as limited by the second paragraph of Section 7.2 hereof) shall be effectively
passed and decided if passed or decided by the Persons entitled to vote not less than a majority in principal amount of Outstanding Securities represented and voting at such meeting. 
  
 Any resolution passed or decisions taken at any meeting of Holders of Securities duly held in accordance with this Section
shall be binding on all the Holders of Securities, whether or not present or represented at the meeting. 
  
 SECTION 8.5. Determination of Voting Rights; Conduct and Adjournment of Meetings. 
  
 (a) Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem
advisable for any meeting of Holders of Securities in regard to proof of the holding of Securities and of the appointment of proxies and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate. 
  
 (b) The Trustee shall, by an instrument in writing, appoint a temporary chairman (which may be the Trustee) of the meeting, unless the meeting shall have
been called by the Company or by Holders of Securities as provided in Section 8.2(b) hereof, in which case the Company or the Holders of Securities calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A
permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons entitled to vote a majority in principal amount of the Outstanding Securities represented at the meeting. 
  
 (c) At any meeting, each Holder of a Security or proxy shall be entitled to
one vote for each $1,000 principal amount of Securities held or represented by him; provided, however, that no vote shall be cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled by the
chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no right to vote, except as a Holder of a Security or proxy. 
  

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 (d) Any meeting of Holders of Securities duly called pursuant to Section 8.2 hereof at which a quorum is
present may be adjourned from time to time by Persons entitled to vote a majority in principal amount of the Outstanding Securities represented at the meeting, and the meeting may be held as so adjourned without further notice. 
  
 SECTION 8.6. Counting Votes and Recording Action of Meetings. The vote
upon any resolution submitted to any meeting of Holders of Securities shall be by written ballots on which shall be subscribed the signatures of the Holders of Securities or of their representatives by proxy and the principal amounts and serial
numbers of the Outstanding Securities held or represented by them. The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file
with the secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting. A record, at least in duplicate, of the proceedings of each meeting of Holders of Securities shall be prepared by the secretary of the
meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice of the
meeting and showing that said notice was given as provided in Section 8.2 hereof and, if applicable, Section 8.4 hereof. Each copy shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company and another to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting. Any record so signed and verified shall be conclusive evidence of the matters
therein stated. 
  
 ARTICLE 9 
  
 COVENANTS 
  
 SECTION 9.1. Payment of Principal, Premium and Interest. The Company will duly and punctually pay the principal of
and premium, if any, and interest (including Liquidated Damages, if any) on the Securities in accordance with the terms of the Securities and this Indenture. The Company will deposit or cause to be deposited with the Trustee as directed by the
Trustee, no later than the day of the Stated Maturity of any Security or installment of interest (including Liquidated Damages, if any), all payments so due. 
  
 SECTION 9.2. Maintenance of Offices or Agencies. The Company hereby appoints the Trustee’s Corporate Trust Office as its office in The City of
New York where Securities may be: 
  
 (i)
presented or surrendered for payment; 
  
 (ii)
surrendered for registration of transfer or exchange; 
  
 (iii) surrendered for conversion; 
  
 and where notices and demands to or
upon the Company in respect of the Securities and this Indenture may be served. 
  
 The Company may at any time and from time to time vary or terminate the appointment of any such office or appoint any additional offices for any or all of such purposes; provided, however, that until all
of the Securities have been delivered to the Trustee for cancellation, or moneys sufficient to pay the principal of and premium, if any, and interest (including Liquidated Damages, if any) on the Securities have been made available for payment and
either paid or returned to the Company pursuant to the provisions of Section 9.3 hereof, the Company will maintain in The City of New York, an office or agency where Securities may be presented or surrendered for payment, where Securities may be
surrendered for registration of transfer or exchange, where Securities may be surrendered for conversion and where notices and demands to or upon the 

  

 -40- 

 
Company in respect of the Securities and this Indenture may be served. The Company will give prompt written notice to the Trustee, and notice to the Holders
in accordance with Section 14.2 hereof, of the appointment or termination of any such agents and of the location and any change in the location of any such office or agency. 
  
 If at any time the Company shall fail to maintain any such required office or agency in The City of New York, or shall fail
to furnish the Trustee with the address thereof, presentations and surrenders may be made at, and notices and demands may be served on, the Corporate Trust Office of the Trustee. 
  
 SECTION 9.3. Corporate Existence. Subject to Article 6 hereof, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate existence, rights (charter and statutory) and franchises; provided, however, that the Company shall not be required to preserve any such right or franchise if the
Company determines that the preservation thereof is no longer desirable in the conduct of the business of the Company and that the loss thereof is not disadvantageous in any material respect to the Holders. 
  
 SECTION 9.4. Maintenance of Properties. The Company will maintain and
keep its properties and every part thereof in such repair, working order and condition, and make or cause to be made all such needful and proper repairs, renewals and replacements thereof, as in the judgment of the Company are necessary in the
interests of the Company; provided, however, that nothing contained in this Section shall prevent the Company from selling, abandoning or otherwise disposing of any of its properties or discontinuing a part of its business from time to
time if, in the judgment of the Company, such sale, abandonment, disposition or discontinuance is advisable and does not materially adversely affect the interests or business of the Company. 
  
 SECTION 9.5. Payment of Taxes and Other Claims. The Company will, and
will cause any Significant Subsidiary to, promptly pay and discharge or cause to be paid and discharged all material taxes, assessments and governmental charges or levies lawfully imposed upon it or upon its income or profits or upon any of its
property, real or personal, or upon any part thereof, as well as all material claims for labor, materials and supplies which, if unpaid, might by law become a lien or charge upon its property; provided, however, that neither the
Company nor any Significant Subsidiary shall be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge, levy or claim if the amount, applicability or validity thereof shall currently be contested in good
faith by appropriate proceedings and if the Company or such Significant Subsidiary, as the case may be, shall have set aside on its books reserves deemed by it adequate with respect thereto. 
  
 SECTION 9.6. Reports. 
  
 (a) The Company shall deliver to the Trustee within 15 days after it files
them with the SEC copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the
SEC pursuant to Section 13 or 15(d) of the Exchange Act; provided, however, that the Company shall not be required to deliver to the Trustee any materials for which the Company has sought and received confidential treatment by the SEC.
The Company also shall comply with the other provisions of Section 314(a) of the TIA. 
  
 (b) If at any time the Company is not subject to Section 13 or 15(d) of the Exchange Act, upon the request of a Holder of a Security, the Company will promptly furnish or cause to be furnished to such Holder or to a
prospective purchaser of such Security designated by such Holder, as the case may be, the information, if any, required to be delivered by it pursuant to Rule 144A(d)(4) under the Securities Act to permit compliance with Rule 144A in connection with
the resale of such Security; provided, however, that the Company shall not be required to furnish such information in connection with any request made on or after 

  

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the date which is two years from the later of the date such Security was last acquired from the Company or an Affiliate of the Company. 
  
 SECTION 9.7. Compliance Certificate. The Company shall deliver to the
Trustee, within 90 days after the end of each fiscal year of the Company, an Officers’ Certificate stating that in the course of the performance by the signers of their duties as Officers of the Company, they would normally have knowledge of
any failure by the Company to comply with all conditions, or Default by the Company with respect to any covenants, under this Indenture, and further stating whether or not they have knowledge of any such failure or Default and, if so, specifying
each such failure or Default and the nature thereof. Within five Business Days of an Officer of the Company coming to have actual knowledge of a Default, regardless of the date, the Company shall deliver an Officers’ Certificate to the Trustee
specifying such Default and the nature and status thereof. 
  
 SECTION 9.8. Resale of Certain Securities. During the period of two years after the last date of original issuance of any Securities, the Company shall not, and shall not permit any of its Affiliates to, resell any Securities, or
shares of Common Stock issuable upon conversion of the Securities, that constitute “restricted securities” under Rule 144 except pursuant to an effective registration statement under the Securities Act or an applicable exemption therefrom.
The Trustee shall have no responsibility or liability in respect of the Company’s performance of its agreement in the preceding sentence. 
  
 SECTION 9.9. Pledge and Escrow Agreement Deposit. Upon consummation of the initial sale of the Securities, the Company shall deposit $10,312,500
(and proportionately up to $12,375,000 if the option set forth in Section 2(b) of the Purchase Agreement is exercised) of the net proceeds from the initial sale of the Securities in the Escrow Account with the Escrow Agent. 
  
 ARTICLE 10 
  
 REDEMPTION OF SECURITIES 
  
 SECTION 10.1. Optional Redemption. The Securities are not redeemable
prior to May 20, 2009. On and after May 20, 2009, the Company may, at its option, redeem the Securities in whole at any time or in part from time to time, on any date prior to maturity, upon notice as set forth in Section 10.4, at the redemption
prices (expressed as a percentage of the principal amount) set forth below (the “Optional Redemption Price”) if redeemed during the period as described below: 
  

				
	 Period

	  	Redemption Price

	 
	 Beginning on May 20, 2009 and ending on May 15, 2010
	  	101.031	%
	 Beginning on May 16, 2010 and ending on May 15, 2011
	  	100.688	%
	 Beginning on May 16, 2011 and ending on May 15, 2012
	  	100.344	%
	 May 16, 2012 and thereafter
	  	100.000	%

  
 in each case, plus any interest
accrued but not paid prior to, but excluding, the Redemption Date. 
  
 SECTION 10.2. Notice to Trustee. If the Company elects to redeem Securities pursuant to the redemption provisions of Section 10.1 hereof, it shall notify the Trustee at least 30 days prior to the Redemption Date of such intended
Redemption Date, the principal amount of Securities to be redeemed and the CUSIP numbers of the Securities to be redeemed. 
  
 SECTION 10.3. Selection of Securities to Be Redeemed. If fewer than all the Securities are to be redeemed, the Trustee shall select the particular
Securities to be redeemed from the Outstanding Securities by a method that complies with the requirements of any exchange on which the Securities are listed, or, if the 

  

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Securities are not listed on an exchange, on a pro rata basis or by lot or in accordance with any other method the Trustee considers fair and appropriate.
Securities and portions thereof that the Trustee selects shall be in amounts equal to the minimum authorized denominations for Securities to be redeemed or any integral multiple thereof. 
  
 If any Security selected for partial redemption is converted in part before termination of the conversion right with respect
to the portion of the Security so selected, the converted portion of such Security shall be deemed to be the portion selected for redemption (provided, however, that the Holder of such Security so converted and deemed redeemed shall
not be entitled to any additional interest payment as a result of such deemed redemption than such Holder would have otherwise been entitled to receive upon conversion of such Security). Securities which have been converted during a selection of
Securities to be redeemed may be treated by the Trustee as Outstanding for the purpose of such selection. 
  
 The Trustee shall promptly notify the Company and the Registrar in writing of the Securities selected for redemption and, in the case of any Securities
selected for partial redemption, the principal amount thereof to be redeemed. 
  
 For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to be redeemed only in part,
to the portion of the principal amount of such Securities which has been or is to be redeemed. 
  
 SECTION 10.4. Notice of Redemption. Notice of redemption shall be given in the manner provided in Section 14.2 hereof to the Holders of Securities to be redeemed. Such notice shall be given not less than 20 nor
more than 60 days prior to the Redemption Date. All notices of redemption shall state: 
  
 (1) the Redemption Date; 
  
 (2) the Redemption Price and interest accrued and unpaid to the Redemption Date, if any; 
  
 (3) if fewer than all the Outstanding Securities are to be
redeemed, the aggregate principal amount of Securities to be redeemed and the aggregate principal amount of Securities which will be Outstanding after such partial redemption; 
  
 (4) that on the Redemption Date the Redemption Price and interest accrued and unpaid to the Redemption Date,
if any, will become due and payable upon each such Security to be redeemed, and that interest thereon shall cease to accrue on and after such date; 
  
 (5) the Conversion Rate, the date on which the right to convert the principal of the Securities to be redeemed will terminate and the
places where such Securities may be surrendered for conversion; 
  
 (6) the place or places where such Securities are to be surrendered for payment of the Redemption Price and accrued and unpaid interest, if any; and 
  
 (7) the CUSIP number of the Securities. 
  
 The notice given shall specify the last date on which exchanges or transfers of Securities may be made pursuant to Section
2.7 hereof, and shall specify the serial numbers of Securities and the portions thereof called for redemption. 
  

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 Notice of redemption of Securities to be redeemed at the election of the Company shall be given by the
Company or, at the Company’s request, by the Trustee in the name of and at the expense of the Company. 
  
 SECTION 10.5. Effect of Notice of Redemption. Notice of redemption having been given as provided in Section 10.4 hereof, the Securities so to be
redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified and from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued and unpaid interest) such
Securities shall cease to bear interest. Upon surrender of any such Security for redemption in accordance with such notice, such Security shall be paid by the Company at the Redemption Price plus accrued and unpaid interest, if any; provided,
however, that the installments of interest on Securities whose Stated Maturity is prior to or on the Redemption Date shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such on the relevant
Record Date according to their terms and the provisions of Section 2.1 hereof. 
  
 If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal and premium, if any, shall, until paid, bear interest from the Redemption Date at the Interest Rate.

  
 SECTION 10.6. Deposit of Redemption Price. Prior to or
on any Redemption Date before 11 a.m. New York City time, the Company shall deposit with the Trustee or with a Paying Agent an amount of money sufficient to pay the Redemption Price of all the Securities to be redeemed on that Redemption Date, other
than any Securities called for redemption on that date which have been converted prior to the date of such deposit, and accrued and unpaid interest, if any, on such Securities. 
  
 If any Security called for redemption is converted, any money deposited with the Trustee or with a Paying Agent or so
segregated and held in trust for the redemption of such Security shall (subject to any right of the Holder of such Security or any Predecessor Security to receive interest as provided in the fourth to last paragraph of Section 2.1 hereof) be paid to
the Company on Company Request or, if then held by the Company, shall be discharged from such trust. 
  
 SECTION 10.7. Securities Redeemed in Part. Any Security which is to be redeemed only in part shall be surrendered at an office or agency of the
Company designated for that purpose pursuant to Section 9.2 hereof (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or the Holder’s attorney duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities of any
authorized denomination as requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered. 
  
 ARTICLE 11 
  
 REPURCHASE OF SECURITIES 
  
 SECTION 11.1. Repurchase Right Upon Fundamental Change. 
  
 (a) In the event that a Fundamental Change shall occur, each Holder shall have the right (the “Repurchase Right”), at the Holder’s
option, but subject to the provisions of Section 11.3 hereof, to require the Company to repurchase, and upon the exercise of such right the Company shall repurchase, all of such Holder’s Securities not theretofore called for redemption, or any
portion of the principal amount thereof that is equal to $1,000 or any integral multiple thereof (provided, however, that no single Security may be repurchased in part unless the portion of the principal amount of such Security to be
Outstanding after such repurchase is equal to $1,000 or integral multiples thereof), on the date (the “Repurchase Date”) that is 45 

  

 -44- 

 
days after the date of the Company Notice at a purchase price equal to 100% of the principal amount of the Securities to be repurchased (the
“Repurchase Price”), plus interest accrued and unpaid to, but excluding, the Repurchase Date; provided, however, that installments of interest on Securities whose Stated Maturity is prior to or on the Repurchase Date
shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such on the relevant Record Date according to their terms and the provisions of Section 2.1 hereof. 
  
 If there shall have occurred a Fundamental Change and all of the
consideration for the Common Stock in the transaction or transactions constituting the Fundamental Change consists of cash (a “Cash Buy-Out”), the Company will pay a Make-Whole Premium, if any, to the Holders of the Securities in
addition to the Repurchase Price. 
  
 The “Make-Whole
Premium” per Security will equal (a) the average of the Closing Trading Price of a Security for the five Trading Days immediately prior to the Company’s public announcement of the Cash Buy-Out, less (b) the greater of (i) $1,000 or
(ii) the product of (x) the average Closing Prices of the Common Stock for the five Trading Days immediately prior to the Company’s public announcement of the Cash Buy-Out and (y) the applicable Conversion Rate; and will be payable in cash or
Common Stock at the option of the Company. The Make-Whole Premium, if any, will not be less than zero. 
  
 The Make-Whole Premium may be paid for, at the election of the Company, in cash or shares of Common Stock, provided that the shares of Common Stock will
be issued out of the Company’s authorized but unissued Common Stock and will, upon issuance, be duly and validly issued and fully paid and nonassessable and free of any preemptive or similar rights. If the Company elects to pay the Make-Whole
Premium by delivering shares of Common Stock, the number of shares of Common Stock to be issued shall be equal to (i) the Make-Whole Premium divided by (ii) 95% of the average of the volume-weighted average price of the Common Stock for the twenty
(20) consecutive Trading Days immediately preceding and including the third Trading Day prior to the Repurchase Date (if the third Business Day prior to the Repurchase Date is a Trading Day, or if not, then on the last Trading Day prior to the third
Business Day). The Company shall designate, in the Company Notice provided to Holders pursuant to Section 11.3 hereof, whether the Company will pay the Make-Whole Premium in cash or shares of Common Stock; provided, however, that the
Company will pay cash for any fractional interests in a share of Common Stock. For purposes of determining the existence of potential fractional interests, all Securities subject to repurchase by the Company held by a Holder shall be considered
together (no matter how many separate certificates are to be presented). The Company may not change its election with respect to the consideration to be paid once the Company has given the Company Notice to Holders pursuant to Section 11.3(a)
hereof, except in the event of that the Company does not have a sufficient number of authorized and unissued shares of Common Stock to pay the Make-Whole Premium prior to 5:00 p.m., New York City time, on the Business Day immediately preceding the
Repurchase Date 
  
 (b) Subject to the fulfillment by the Company
of the conditions set forth in Section 11.2 hereof, the Company may elect to pay the Repurchase Price by delivering that number of shares of Common Stock equal to (i) the Repurchase Price divided by (ii) 95% of the average of the daily
volume-weighted average price of the Common Stock for the twenty (20) consecutive Trading Days immediately preceding and including the third Business Day prior to the Repurchase Date (if the third Business Day prior to the Repurchase Date is a
Trading Day, or if not, then on the last Trading Day prior to the third Business Day), appropriately adjusted to take into account the occurrence, during the period commencing on the first Trading Day during the twenty Trading-Day period and ending
on the Repurchase Date of any event that would result in an adjustment to the conversion rate set forth in Section 12.1(c). 
  
 (c) Whenever in this Indenture (including Sections 2.2, 4.1(a) and 4.7 hereof) or Exhibit A annexed hereto there is a reference, in any context, to
the principal of any Security as of any time, 

  

 -45- 

 
such reference shall be deemed to include reference to the Repurchase Price, payable in respect to such Security to the extent that such Repurchase Price is,
was or would be so payable at such time, and express mention of the Repurchase Price in any provision of this Indenture shall not be construed as excluding the Repurchase Price in those provisions of this Indenture when such express mention is not
made; provided, however, that for the purposes of Article 13 hereof, such reference shall be deemed to include reference to the Repurchase Price only to the extent the Repurchase Price is payable in cash. 
  
 SECTION 11.2. Conditions to the Company’s Election to Pay the
Repurchase Price in Common Stock. 
  
 (a) The shares of Common
Stock to be issued upon repurchase of Securities hereunder: 
  
 (i) shall not require registration under any federal securities law before such shares may be freely transferable without being subject to any transfer restrictions under the Securities Act upon repurchase or, if such
registration is required, such registration shall be completed and shall become effective prior to the Repurchase Date; and 
  
 (ii) shall not require registration with, or approval of, any governmental authority under any state law or any other federal law before
shares may be validly issued or delivered upon repurchase or if such registration is required or such approval must be obtained, such registration shall be completed or such approval shall be obtained prior to the Repurchase Date. 
  
 (b) The shares of Common Stock to be listed upon repurchase of Securities
hereunder are, or shall have been, approved for listing on the Nasdaq National Market or the New York Stock Exchange or listed on another national securities exchange, in any case, prior to the Repurchase Date. 
  
 (c) All shares of Common Stock which may be issued upon repurchase of
Securities will be issued out of the Company’s authorized but unissued Common Stock and will, upon issue, be duly and validly issued and fully paid and nonassessable and free of any preemptive or similar rights. 
  
 (d) If any of the conditions set forth in clauses (a) through (c) of this
Section 11.2 are not satisfied in accordance with the terms thereof, the Repurchase Price shall be paid by the Company only in cash. 
  
 SECTION 11.3. Notices; Method of Exercising Repurchase Right, Etc. 
  
 (a) Unless the Company shall have theretofore called for redemption all of the Outstanding Securities, prior to or on the
30th day after the occurrence of a Fundamental Change, the Company, or, at the written request and expense of the Company prior to or on the 30th day after such occurrence, the Trustee shall give to all Holders of Securities notice, in the manner
provided in Section 14.2 hereof, of the occurrence of the Fundamental Change and of the Repurchase Right set forth herein arising as a result thereof (the “Company Notice”). The Company shall also deliver a copy of such notice of a
Repurchase Right to the Trustee. Each notice of a Repurchase Right shall state: 
  
 (1) the Repurchase Date; 
  
 (2) the date by which the Repurchase Right must be exercised; 
  
 (3) the Repurchase Price and accrued and unpaid interest, if any, and whether the Repurchase Price shall be
paid by the Company in cash or by delivery of shares of Common Stock; 
  

 -46- 

 (4) a description of the procedure which a Holder must follow to exercise a Repurchase
Right, and the place or places where such Securities, are to be surrendered for payment of the Repurchase Price and accrued and unpaid interest, if any; 
  
 (5) that on the Repurchase Date the Repurchase Price and accrued and unpaid interest, if any, will become due and payable upon each such
Security designated by the Holder to be repurchased, and that interest thereon shall cease to accrue on and after said date; 
  
 (6) the Conversion Rate then in effect, the date on which the right to convert the principal amount of the Securities to be repurchased
will terminate and the place where such Securities may be surrendered for conversion; 
  
 (7) the place or places where such Securities, together with the Option to Elect Repayment Upon a Change of Control certificate included
in Exhibit A annexed hereto are to be delivered for payment of the Repurchase Price and accrued and unpaid interest, if any; and 
  
 (8) whether a Make-Whole Premium shall be paid by the Company and whether such Make-Whole Premium shall be paid in cash or by delivery of
Common Stock. 
  
 No failure of the Company to give the foregoing
notices or defect therein shall limit any Holder’s right to exercise a Repurchase Right or affect the validity of the proceedings for the repurchase of Securities. 
  
 If any of the foregoing provisions or other provisions of this Article 11 are inconsistent with applicable law, such law
shall govern. 
  
 (b) To exercise a Repurchase Right, a Holder
shall deliver to the Trustee prior to or on the 30th day after the date of the Company Notice: 
  
 (1) written notice of the Holder’s exercise of such right, which notice shall set forth the name of the Holder, the principal amount
of the Securities to be repurchased (and, if any Security is to be repurchased in part, the serial number thereof, the portion of the principal amount thereof to be repurchased) and a statement that an election to exercise the Repurchase Right is
being made thereby, and, in the event that the Repurchase Price shall be paid in shares of Common Stock, the name or names (with addresses) in which the certificate or certificates for shares of Common Stock shall be issued, and 
  
 (2) the Securities with respect to which the Repurchase
Right is being exercised. 
  
 Such written notice shall be
irrevocable, except that the right of the Holder to convert the Securities with respect to which the Repurchase Right is being exercised shall continue until the close of business on the Business Day immediately preceding the Repurchase Date.

  
 (c) In the event a Repurchase Right shall be exercised in
accordance with the terms hereof, the Company shall pay or cause to be paid to the Trustee the Repurchase Price in cash for payment to the Holder on the Repurchase Date or, if shares of Common Stock are to be paid, shares of Common Stock, as
provided above, as promptly after the Repurchase Date as practicable, together with accrued and unpaid interest to the Repurchase Date payable in cash with respect to the Securities as to which the Repurchase Right has been exercised;
provided, however, that installments of interest that mature prior to or on the Repurchase Date shall be payable in cash to the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of
business on the relevant Regular Record Date. 
  

 -47- 

 (d) If any Security (or portion thereof) surrendered for repurchase shall not be so paid on the
Repurchase Date, the principal amount of such Security (or portion thereof, as the case may be) shall, until paid, bear interest to the extent permitted by applicable law from the Repurchase Date at the Interest Rate, and each Security shall remain
convertible into Common Stock until the principal of such Security (or portion thereof, as the case may be) shall have been paid or duly provided for. 
  
 (e) Any Security which is to be repurchased only in part shall be surrendered to the Trustee (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by the Holder thereof or his attorney duly authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and make available for delivery to the Holder of such Security without service charge, a new Security or Securities, containing identical terms and conditions, each in an authorized denomination in aggregate principal amount equal to
and in exchange for the unrepurchased portion of the principal of the Security so surrendered. 
  
 (f) Any issuance of shares of Common Stock in respect of the Repurchase Price shall be deemed to have been effected immediately prior to the close of business on the Repurchase Date and the Person or Persons in whose
name or names any certificate or certificates for shares of Common Stock shall be issuable upon such repurchase shall be deemed to have become on the Repurchase Date the holder or holders of record of the shares represented thereby; provided,
however, that any surrender for repurchase on a date when the stock transfer books of the Company shall be closed shall constitute the Person or Persons in whose name or names the certificate or certificates for such shares are to be issued
as the record holder or holders thereof for all purposes at the opening of business on the next succeeding day on which such stock transfer books are open. No payment or adjustment shall be made for dividends or distributions on any Common Stock
issued upon repurchase of any Security declared prior to the Repurchase Date. 
  
 (g) No fractions of shares of Common Stock shall be issued upon repurchase of any Security or Securities. If more than one Security shall be repurchased from the same Holder and the Repurchase Price shall be payable
in shares of Common Stock, the number of full shares which shall be issued upon such repurchase shall be computed on the basis of the aggregate principal amount of the Securities (or specified portions thereof) to be so repurchased. Instead of any
fractional share of Common Stock which would otherwise be issued on the repurchase of any Security or Securities (or specified portions thereof), the Company shall pay a cash adjustment in respect of such fraction (calculated to the nearest
one-100th of a share) in an amount equal to the same fraction of the Quoted Price of the Common Stock as of the Trading Day preceding the Repurchase Date. 
  
 (h) Any issuance and delivery of certificates for shares of Common Stock on repurchase of Securities shall be made without charge to the Holder of
Securities being repurchased for such certificates or for any tax or duty in respect of the issuance or delivery of such certificates or the Securities represented thereby; provided, however, that the Company shall not be required to
pay any tax or duty which may be payable in respect of (i) income of the Holder or (ii) any transfer involved in the issuance or delivery of certificates for shares of Common Stock in a name other than that of the Holder of the Securities being
repurchased, and no such issuance or delivery shall be made unless the Persons requesting such issuance or delivery has paid to the Company the amount of any such tax or duty or has established, to the satisfaction of the Company, that such tax or
duty has been paid. 
  
 (i) All Securities delivered for
repurchase shall be delivered to the Trustee to be canceled at the direction of the Trustee, which shall dispose of the same as provided in Section 2.15 hereof. 
  

 -48- 

 ARTICLE 12 
  

CONVERSION OF SECURITIES 
  
 SECTION 12.1. Conversion Right and Conversion Rate. 
  
 (a) Subject to and upon compliance with the provisions of this Article, at the option of the Holder thereof, any Security or any portion of the principal
amount thereof which is $1,000 or an integral multiple of $1,000 may be converted at the principal amount thereof, or of such portion thereof, into the number of duly authorized, fully paid and nonassessable shares of Common Stock at the Conversion
Rate, determined as hereinafter provided, in effect at the time of conversion. Such conversion right shall expire at the close of business on May 16, 2012. 
  
 (b) In case a Security or portion thereof is called for redemption, such conversion right in respect of the Security or the portion so called, shall
expire at the close of business on the Business Day immediately preceding the Redemption Date, unless the Company defaults in making the payment due upon redemption. In the case of a Fundamental Change for which the Holder exercises its Repurchase
Right with respect to a Security or portion thereof, such conversion right in respect of the Security or portion thereof shall expire at the close of business on the Business Day preceding the Repurchase Date. 
  
 (c) The rate at which shares of Common Stock shall be delivered upon
conversion (the “Conversion Rate”) shall be initially equal to 56.5475 shares of Common Stock per $1,000 principal amount of Securities. The Conversion Rate shall be adjusted in certain instances as provided in paragraphs (a), (b),
(c), (d), (e), (f), (h) and (l) of Section 12.4 hereof. 
  
 (d) If
a Holder converts its Securities after receipt of a Company Notice and prior to the Repurchase Date, and the Fundamental Change related to the Company Notice constitutes a Cash Buy-Out, such Holder will be entitled to receive an amount, payable in
cash or Common Stock, at the option of the Company, equal to the Make-Whole Premium, in addition to the shares of Common Stock deliverable upon conversion of the Securities. 
  
 SECTION 12.2. Exercise of Conversion Right. To exercise the conversion right, the Holder of any Security to be
converted shall surrender such Security duly endorsed or assigned to the Company or in blank, at the office of any Conversion Agent, accompanied by a duly signed conversion notice substantially in the form attached to the Security to the Company
stating that the Holder elects to convert such Security or, if less than the entire principal amount thereof is to be converted, the portion thereof to be converted. 
  
 Any Holder which surrenders any Security for conversion during the period between the close of business on any Regular
Record Date and ending with the opening of business on the corresponding Interest Payment Date (except in the case of any Security whose Maturity is prior to such Interest Payment Date) shall be accompanied by payment in New York Clearing House
funds or other funds acceptable to the Company of an amount equal to the interest (including Liquidated Damages, if any) to be received on such Interest Payment Date on the principal amount of the Security being surrendered for conversion (but
excluding any overdue interest on the principal amount of such Security so converted that exists at the time such Holder surrenders such Security for conversion). Notwithstanding the foregoing, any such Holder which surrenders for conversion any
Security (a) which has been called for redemption by the Company in a notice of redemption given by the Company pursuant to Section 10.4 hereof on a Redemption Date after such Regular Record Date and on or prior to the next succeeding Interest
Payment Date or (b) with respect to which the Company has specified a Repurchase Date that is after such Regular Record Date and on or prior to the next succeeding Interest Payment Date, in either case, need not pay the Company an amount equal to
the interest 

  

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(including Liquidated Damages, if any) in the principal amount of such Security so converted at the time such Holder surrenders such Security for conversion.

  
 Securities shall be deemed to have been converted immediately
prior to the close of business on the day of surrender of such Securities for conversion in accordance with the foregoing provisions, and at such time the rights of the Holders of such Securities as Holders shall cease, and the Person or Persons
entitled to receive the Common Stock issuable upon conversion shall be treated for all purposes as the record holder or holders of such Common Stock at such time. As promptly as practicable on or after the conversion date, the Company shall cause to
be issued and delivered to such Conversion Agent a certificate or certificates for the number of full shares of Common Stock issuable upon conversion, together with payment in lieu of any fraction of a share as provided in Section 12.3 hereof.

  
 In the case of any Security which is converted in part only,
upon such conversion the Company shall execute and the Trustee shall authenticate and deliver to the Holder thereof, at the expense of the Company, a new Security or Securities of authorized denominations in aggregate principal amount equal to the
unconverted portion of the principal amount of such Securities. 
  
 If shares of Common Stock to be issued upon conversion of a Restricted Security, or Securities to be issued upon conversion of a Restricted Security in part only, are to be registered in a name other than that of the Holder of such
Restricted Security, such Holder must deliver to the Conversion Agent a certificate in substantially the form set forth in the form of Security set forth in Exhibit A annexed hereto, dated the date of surrender of such Restricted Security and
signed by such Holder, as to compliance with the restrictions on transfer applicable to such Restricted Security. Neither the Trustee nor any Conversion Agent, Registrar or Transfer Agent shall be required to register in a name other than that of
the Holder shares of Common Stock or Securities issued upon conversion of any such Restricted Security not so accompanied by a properly completed certificate. 
  

The Company hereby initially appoints the Trustee as the Conversion Agent. 
  
 SECTION 12.3. Fractions of Shares. No fractional shares of Common Stock shall be issued upon conversion of any
Security or Securities. If more than one Security shall be surrendered for conversion at one time by the same Holder, the number of full shares which shall be issued upon conversion thereof shall be computed on the basis of the aggregate principal
amount of the Securities (or specified portions thereof) so surrendered. Instead of any fractional share of Common Stock which would otherwise be issued upon conversion of any Security or Securities (or specified portions thereof), the Company shall
pay a cash adjustment in respect of such fraction (calculated to the nearest one-100th of a share) in an amount equal to the same fraction of the Quoted Price of the Common Stock as of the Trading Day preceding the date of conversion. 
  
 SECTION 12.4. Adjustment of Conversion Rate. The Conversion Rate shall
be subject to adjustments, calculated by the Company, from time to time as follows: 
  
 (a) In case the Company shall hereafter pay a dividend or make a distribution to all holders of the outstanding Common Stock in shares of
Common Stock, the Conversion Rate in effect at the opening of business on the date following the date fixed for the determination of stockholders entitled to receive such dividend or other distribution shall be increased by multiplying such
Conversion Rate by a fraction: 
  
 (i) the
numerator of which shall be the number of shares of Common Stock outstanding at the close of business on the Record Date (as defined in Section 12.4(g)) fixed for such determination and the total number of shares constituting such dividend or other
distribution, and 
  

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 (ii) the denominator of which shall be the number of shares of Common Stock outstanding
at the close of business on the Record Date (as defined in Section 12.4(g)) fixed for such determination. 
  
 Such increase shall become effective immediately after the opening of business on the day following the Record Date. If any dividend or distribution of
the type described in this Section 12.4(a) is declared but not so paid or made, the Conversion Rate shall again be adjusted to the Conversion Rate which would then be in effect if such dividend or distribution had not been declared. 
  
 (b) In case the outstanding shares of Common Stock shall be
subdivided into a greater number of shares of Common Stock, the Conversion Rate in effect at the opening of business on the day following the day upon which such subdivision becomes effective shall be proportionately increased, and conversely, in
case outstanding shares of Common Stock shall be combined into a smaller number of shares of Common Stock, the Conversion Rate in effect at the opening of business on the day following the day upon which such combination becomes effective shall be
proportionately reduced, such increase or reduction, as the case may be, to become effective immediately after the opening of business on the day following the day upon which such subdivision or combination becomes effective. 
  
 (c) In case the Company shall issue rights or warrants
(other than any rights or warrants referred to in Section 12.4(d)) to all or substantially all holders of its outstanding shares of Common Stock entitling them to subscribe for or purchase shares of Common Stock (or securities convertible into
Common Stock) at a price per share (or having a conversion price per share) less than the Current Market Price (as defined in Section 12.4(g)) on the Record Date fixed for the determination of stockholders entitled to receive such rights or
warrants, the Conversion Rate shall be increased so that the same shall equal the price determined by multiplying the Conversion Rate in effect at the opening of business on the date after such Record Date by a fraction: 
  
 (i) the numerator of which shall be the number of shares of
Common Stock outstanding on the close of business on the Record Date plus the total number of additional shares of Common Stock so offered for subscription or purchase (or into which the convertible securities so offered are convertible), and

  
 (ii) the denominator of which shall be the
number of shares of Common Stock outstanding at the close of business on the Record Date plus the number of shares which the aggregate offering price of the total number of shares so offered for subscription or purchase (or the aggregate conversion
price of the convertible securities so offered) would purchase at such Current Market Price. 
  
 Such adjustment shall become effective immediately after the opening of business on the day following the Record Date fixed for determination of stockholders entitled to receive such rights or warrants. To the extent
that shares of Common Stock (or securities convertible into Common Stock) are not delivered pursuant to such rights or warrants, upon the expiration or termination of such rights or warrants the Conversion Rate shall be readjusted to the Conversion
Rate which would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of the delivery of only the number of shares of Common Stock (or securities convertible into Common Stock) actually
delivered. In the event that such rights or warrants are not so issued, the Conversion Rate shall again be adjusted to be the Conversion Rate which would then be in effect if such date fixed for the determination of stockholders entitled to receive
such rights or warrants had not been fixed. In determining whether any rights or warrants entitle the holders to subscribe for or purchase shares of Common Stock at less than such Current Market Price, and in determining the aggregate offering price
of such shares of Common Stock, there shall be taken into account any consideration received for such rights or warrants, the value of such consideration if other than cash, to be determined by the Board of Directors. 
  

 -51- 

 (d) In case the Company shall, by dividend or otherwise, distribute to all or
substantially all holders of its Common Stock shares of any class of capital stock of the Company (other than any dividends or distributions to which Section 12.4(a) applies) or evidences of its indebtedness, cash or other assets, including
securities, but excluding (1) any rights or warrants referred to in Section 12.4(c), (2) any stock, securities or other property or assets (including cash) distributed in connection with a reclassification, change, merger, consolidation, statutory
share exchange, combination, sale or conveyance to which Section 12.11 hereof applies and (3) dividends and distributions paid exclusively in cash (the securities described in foregoing clauses (1), (2) and (3) hereinafter in this Section 12.4(d)
called the “securities”), then, in each such case, subject to the second succeeding paragraph of this Section 12.4(d), the Conversion Rate shall be increased so that the same shall be equal to the price determined by multiplying the
Conversion Rate in effect immediately prior to the close of business on the Record Date (as defined in Section 12.4(g)) with respect to such distribution by a fraction: 
  
 (i) the numerator of which shall be the Current Market Price (determined as provided in Section 12.4(g)) on
such date, and 
  
 (ii) the denominator of which
shall be such Current Market Price on such date less the fair market value (as determined by the Board of Directors (except as described below), whose determination shall be conclusive and set forth in a Board Resolution) on such date of the portion
of the shares of capital stock, evidences of indebtedness, cash or other assets, including securities, so distributed applicable to one share of Common Stock (determined on the basis of the number of shares of the Common Stock outstanding on the
Record Date). 
  
 Such increase shall become
effective immediately prior to the opening of business on the day following the Record Date, or in the case of a Spin-off, immediately prior to the opening of business on the day following the last Trading Day of the Measurement Period. However, in
the event that the then fair market value (as so determined) of the portion of the securities so distributed applicable to one share of Common Stock is equal to or greater than the Current Market Price on the Record Date, in lieu of the foregoing
adjustment, adequate provision shall be made so that each Holder shall have the right to receive upon conversion of a Security (or any portion thereof) the amount of shares of capital stock, evidences of indebtedness, cash or other assets, including
securities, such Holder would have received had such Holder converted such Security (or portion thereof) immediately prior to such Record Date. In the event that such dividend or distribution is not so paid or made, the Conversion Rate shall again
be adjusted to be the Conversion Rate which would then be in effect if such dividend or distribution had not been declared. 
  
 If the Board of Directors determines the fair market value of any distribution for purposes of this Section 12.4(d) by reference to the
actual or when issued trading market for any securities comprising all or part of such distribution, it must in doing so consider the prices in such market over the same period (the “Reference Period”) used in computing the Current Market
Price pursuant to Section 12.4(g) to the extent possible, unless the Board of Directors in a Board Resolution determines in good faith that determining the fair market value during the Reference Period would not be in the best interest of the
Holder. 
  
 In the event the Company distributes
shares of capital stock of a Subsidiary or other business unit of the Company, the Conversion Rate will be adjusted, if at all, based on the market value of the Subsidiary or other business unit of the Company’s stock so distributed relative to
the market value of the Common Stock, as described in the remainder of this paragraph. In respect of a dividend or other distribution of shares of capital stock of a class or series, or similar equity interest, of or relating to a Subsidiary or
other business unit of the Company which has a Subsidiary Closing Price (a “Spin-off”), the fair market value of the securities to be distributed shall equal the average of the daily Subsidiary Closing Price of such securities for
the ten (10) consecutive Trading Days commencing on and including the fifth Trading Day of such securities after the effectiveness of the Spin-off (the “Measurement Period”); provided, however, that in the event that
an 

  

 -52- 

 
underwritten initial public offering of the securities in the Spin-off occurs simultaneously with the Spin-off, fair market value of the securities
distributed in the Spin-off shall be the initial public offering price of such securities and the market price per share of the Common Stock shall mean the Closing Price for the Common Stock on the same Trading Day. 
  
 Rights or warrants distributed by the Company to all holders
of Common Stock entitling the holders thereof to subscribe for or purchase shares of the Company’s capital stock (either initially or under certain circumstances), which rights or warrants, until the occurrence of a specified event or events
(“Trigger Event”): 
  
 (i) are
deemed to be transferred with such shares of Common Stock, 
  
 (ii) are not exercisable, and 
  
 (iii) are also issued in respect of future issuances of Common Stock 
  
 shall be deemed not to have been distributed for purposes of this Section 12.4(d) (and no adjustment to the Conversion Rate under this Section 12.4(d)
will be required) until the occurrence of the earliest Trigger Event. If such right or warrant is subject to subsequent events, upon the occurrence of which such right or warrant shall become exercisable to purchase different securities, evidences
of indebtedness or other assets or entitle the holder to purchase a different number or amount of the foregoing or to purchase any of the foregoing at a different purchase price, then the occurrence of each such event shall be deemed to be the date
of issuance and record date with respect to a new right or warrant (and a termination or expiration of the existing right or warrant without exercise by the holder thereof). In addition, in the event of any distribution (or deemed distribution) of
rights or warrants, or any Trigger Event or other event (of the type described in the preceding sentence) with respect thereto, that resulted in an adjustment to the Conversion Rate under this Section 12.4(d): 
  
 (1) in the case of any such rights or warrants which shall
all have been redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger Event, as the case may be, as though it
were a cash distribution, equal to the per share redemption or repurchase price received by a holder of Common Stock with respect to such rights or warrant (assuming such holder had retained such rights or warrants), made to all holders of Common
Stock as of the date of such redemption or repurchase, and 
  
 (2) in the case of such rights or warrants all of which shall have expired or been terminated without exercise, the Conversion Rate shall be readjusted as if such rights and warrants had never been issued. 

 
 For purposes of this Section 12.4(d) and Sections
12.4(a), 12.4(b) and 12.4(c), any dividend or distribution to which this Section 12.4(d) is applicable that also includes shares of Common Stock, a subdivision or combination of Common Stock to which Section 12.4(b) applies, or rights or warrants to
subscribe for or purchase shares of Common Stock to which Section 12.4(c) applies (or any combination thereof), shall be deemed instead to be: 
  
 (1) a dividend or distribution of the evidences of indebtedness, assets, shares of capital stock, rights or warrants other than such
shares of Common Stock, such subdivision or combination or such rights or warrants to which Sections 12.4(a), 12.4(b) and 12.4(c) apply, respectively (and any Conversion Rate increase required by this Section 12.4(d) with respect to such dividend or
distribution shall then be made), immediately followed by 
  

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 (2) a dividend or distribution of such shares of Common Stock, such subdivision or
combination or such rights or warrants (and any further Conversion Rate increase required by Sections 12.4(a), 12.4(b) and 12.4(c) with respect to such dividend or distribution shall then be made), except: 
  
 (A) the Record Date of such dividend or distribution shall
be substituted as (x) “the date fixed for the determination of stockholders entitled to receive such dividend or other distribution”, “Record Date fixed for such determination” and “Record Date” within the meaning of
Section 12.4(a), (y) “the day upon which such subdivision becomes effective” and “the day upon which such combination becomes effective” within the meaning of Section 12.4(b), and (z) “the Record Date fixed for the
determination of stockholders entitled to receive such rights or warrants,” such “Record Date,” “the Record Date fixed for the determination of stockholders entitled to receive such rights or warrants” and “such date
fixed for the determination of stockholders entitled to receive such rights or warrants” within the meaning of Section 12.4(c), and 
  
 (B) any shares of Common Stock included in such dividend or distribution shall not be deemed “outstanding at the close of business
on the Record Date fixed for such determination” within the meaning of Section 12.4(a) and any reduction or increase in the number of shares of Common Stock resulting from such subdivision or combination shall be disregarded in connection with
such dividend or distribution. 
  
 (e) In case
the Company shall, by dividend or otherwise, distribute to all or substantially all holders of its Common Stock cash (excluding any cash that is distributed upon a reclassification, change, merger, consolidation, statutory share exchange,
combination, sale or conveyance to which Section 12.11 hereof applies or as part of a distribution referred to in Section 12.4(d) hereof), then and in each such case, immediately after the close of business on such date, the Conversion Rate shall be
increased so that the same shall equal the price determined by multiplying the Conversion Rate in effect immediately prior to the close of business on such Record Date by a fraction: 
  
 (i) the numerator of which shall be equal to the Current Market Price on the Record Date, and 
  
 (ii) the denominator of which shall be equal to the Current
Market Price on such date less an amount equal to the quotient of (x) the sum of the aggregate amount of cash so distributed and (y) the number of shares of Common Stock outstanding on the Record Date. 
  
 In the event that such dividend or distribution is not so paid or made, the
Conversion Rate shall again be adjusted to be the Conversion Rate which would then be in effect if such dividend or distribution had not been declared. 
  
 (f) In case a tender or exchange offer made by the Company or any of its subsidiaries for all or any portion of the Common Stock shall
expire, then, and in each such case, immediately prior to the opening of business on the day after the date of the last time (the “Expiration Time”) tenders could have been made pursuant to such tender or exchange offer, the
Conversion Rate shall be adjusted so that the same shall equal the price determined by multiplying the Conversion Rate in effect immediately prior to close of business on the date of the Expiration Time by a fraction: 
  
 (i) the numerator of which shall be the sum of (x) the fair
market value (determined as aforesaid) of the aggregate consideration payable to stockholders based on the acceptance (up to any maximum specified in the terms of the tender or exchange offer) of all shares validly tendered or exchanged and not
withdrawn as of the Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to as the “Purchased Shares”) and (y) the product of the number of shares of 

  

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Common Stock outstanding (less any Purchased Shares) on the Expiration Time and the Current Market Price of the Common Stock on the Trading Day next
succeeding the Expiration Time, and 
  
 (ii) the
denominator shall be (x) the number of shares of Common Stock outstanding (including any tendered or exchanged shares) at the Expiration Time multiplied by the Current Market Price of the Common Stock on the Trading Day next succeeding the
Expiration Time. 
  
 Such increase (if any) shall
become effective immediately prior to the opening of business on the day following the Expiration Time. In the event that the Company is obligated to purchase shares pursuant to any such tender offer, but the Company is permanently prevented by
applicable law from effecting any such purchases or all such purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate which would then be in effect if such tender or exchange offer had not been made. If the
application of this Section 12.4(f) to any tender or exchange offer would result in an decrease in the Conversion Rate, no adjustment shall be made for such tender or exchange offer under this Section 12.4(f). 
  
 (g) For purposes of this Section 12.4, the following terms
shall have the meanings indicated: 
  
 (1)
“Current Market Price” shall mean the average of the daily Closing Prices per share of Common Stock for the ten (10) consecutive Trading Days immediately prior to the date in question; provided, however, that if:

  
 (i) the “ex” date (as hereinafter
defined) for any event (other than the issuance or distribution requiring such computation) that requires an adjustment to the Conversion Rate pursuant to Section 12.4(a), (b), (c), (d), (e) or (f) occurs during such ten consecutive Trading Days,
the Closing Price for each Trading Day prior to the “ex” date for such other event shall be adjusted by dividing such Closing Price by the same fraction by which the Conversion Rate is so required to be adjusted as a result of such other
event; 
  
 (ii) the “ex” date for any
event (other than the issuance or distribution requiring such computation) that requires an adjustment to the Conversion Rate pursuant to Section 12.4(a), (b), (c), (d), (e) or (f) occurs on or after the “ex” date for the issuance or
distribution requiring such computation and prior to the day in question, the Closing Price for each Trading Day on and after the “ex” date for such other event shall be adjusted by dividing such Closing Price by the reciprocal of the
fraction by which the Conversion Rate is so required to be adjusted as a result of such other event; and 
  
 (iii) the “ex” date for the issuance or distribution requiring such computation is prior to the day in question, after taking
into account any adjustment required pursuant to clause (i) or (ii) of this proviso, the Closing Price for each Trading Day on or after such “ex” date shall be adjusted by adding thereto the amount of any cash and the fair market value (as
determined by the Board of Directors in a manner consistent with any determination of such value for purposes of Section 12.4(d) or (f), whose determination shall be conclusive and set forth in a Board Resolution) of the evidences of indebtedness,
shares of capital stock or assets being distributed applicable to one share of Common Stock as of the close of business on the day before such “ex” date. 
  
 For purposes of any computation under Section 12.4(f), the Current Market Price of the Common Stock on any
date shall be deemed to be the average of the daily Closing Prices per share of Common Stock for such day and the next two succeeding Trading Days; provided, however, that if the “ex” date for any event (other than the tender
offer requiring such computation) that requires an adjustment to the Conversion Rate pursuant to Section 12.4(a), (b), (c), (d), (e) or (f) occurs on or after the Expiration Time for the tender or exchange offer requiring such computation and prior
to the day in question, the Closing Price for each 

  

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Trading Day on and after the “ex” date for such other event shall be adjusted by dividing such Closing Price by the reciprocal of the fraction by
which the Conversion Rate is so required to be adjusted as a result of such other event. For purposes of this paragraph, the term “ex” date, when used: 
  
 (A) with respect to any issuance or distribution, means the first date on which the Common Stock trades
regular way on the relevant exchange or in the relevant market from which the Closing Price was obtained without the right to receive such issuance or distribution; 
  
 (B) with respect to any subdivision or combination of shares of Common Stock, means the first date on which
the Common Stock trades regular way on such exchange or in such market after the time at which such subdivision or combination becomes effective, and 
  
 (C) with respect to any tender or exchange offer, means the first date on which the Common Stock trades regular way on such exchange or
in such market after the Expiration Time of such offer. 
  
 Notwithstanding the foregoing, whenever successive adjustments to the Conversion Rate are called for pursuant to this Section 12.4, such adjustments shall be made to the Current Market Price as may be necessary or
appropriate to effectuate the intent of this Section 12.4 and to avoid unjust or inequitable results as determined in good faith by the Board of Directors. 
  
 (1) “fair market value” shall mean the amount which a willing buyer would pay a willing seller in an arm’s length
transaction. 
  
 (2) “Record
Date” shall mean, with respect to any dividend, distribution or other transaction or event in which the holders of Common Stock have the right to receive any cash, securities or other property or in which the Common Stock (or other
applicable security) is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of stockholders entitled to receive such cash, securities or other property (whether such date is fixed
by the Board of Directors or by statute, contract or otherwise). 
  
 (h) The Company may make such increases in the Conversion Rate, in addition to those required by Section 12.4(a), (b), (c), (d), (e) or (f), as the Board of Directors considers to be advisable to avoid or diminish any
income tax to holders of Common Stock or rights to purchase Common Stock resulting from any dividend or distribution of stock (or rights to acquire stock) or from any event treated as such for income tax purposes. 
  
 To the extent permitted by applicable law, the Company from
time to time may increase the Conversion Rate by any amount for any period of time if the period is at least 20 days and the increase is irrevocable during the period and the Board of Directors determines in good faith that such increase would be in
the best interests of the Company, which determination shall be conclusive and set forth in a Board Resolution; provided, however, that in no event may the Company increase the Conversion Rate such that it causes the Conversion Price to be
less than the par value of a share of Common Stock. Whenever the Conversion Rate is increased pursuant to the preceding sentence, the Company shall mail to the Trustee and each Holder at the address of such Holder as it appears in the Register a
notice of the increase at least 15 days prior to the date the increased Conversion Rate takes effect, and such notice shall state the increased Conversion Rate and the period during which it will be in effect. 
  
 (i) All calculations under this Article 12 shall be made by
the Company and shall be made to the nearest cent or to the nearest one-ten-thousandth (1/10,000) of a share, as the case may be. No adjustment need be made for a change in the par value or no par value of the Common Stock. 
  

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 (j) In any case in which this Section 12.4 provides that an adjustment shall become
effective immediately after a Record Date for an event, the Company may defer until the occurrence of such event (i) issuing to the Holder of any Security converted after such Record Date and before the occurrence of such event the additional shares
of Common Stock issuable upon such conversion by reason of the adjustment required by such event over and above the Common Stock issuable upon such conversion before giving effect to such adjustment and (ii) paying to such holder any amount in cash
in lieu of any fraction pursuant to Section 12.3 hereof. 
  
 (k) For purposes of this Section 12.4, the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company but shall include shares issuable in respect of scrip
certificates issued in lieu of fractions of shares of Common Stock. The Company will not pay any dividend or make any distribution on shares of Common Stock held in the treasury of the Company. 
  
 (l) To the extent the Company has a Rights Plan in effect
upon conversion of the Securities pursuant to this Article 12: (i) if such Rights have not separated from the Common Stock prior to the conversion of the Securities, each share of Common Stock issued upon conversion of the Securities pursuant to
this Article 12 shall be entitled to receive the appropriate number of Rights, if any, and the certificates representing the Common Stock issued upon such conversion shall bear such legends, if any, in each case as may be provided by the terms of
any Rights Plan; or (ii) if such Rights have separated from the Common Stock prior to the conversion of the Securities, the Conversion Rate will be adjusted as though the Rights were being distributed to all holders of Common Stock on the date of
such separation. If such an adjustment is made and the Rights are later redeemed, invalidated or terminated, then a corresponding reversing adjustment will be made to the Conversion Rate on an equitable basis. 
  
 SECTION 12.5. Notice of Adjustments of Conversion Rate. Whenever the
Conversion Rate is adjusted as herein provided (other than in the case of an adjustment pursuant to the second paragraph of Section 12.4(h) for which the notice required by such paragraph has been provided), the Company shall promptly file with the
Trustee and any Conversion Agent other than the Trustee an Officers’ Certificate setting forth the adjusted Conversion Rate and showing in reasonable detail the facts upon which such adjustment is based. Promptly after delivery of such
Officers’ Certificate, the Company shall prepare a notice stating that the Conversion Rate has been adjusted and setting forth the adjusted Conversion Rate and the date on which each adjustment becomes effective, and shall mail such notice to
each Holder at the address of such Holder as it appears in the Register within 20 days of the effective date of such adjustment. Failure to deliver such notice shall not affect the legality or validity of any such adjustment. 
  
 SECTION 12.6. Notice Prior to Certain Actions. In case at any time
after the date hereof: 
  
 (1) the Company shall
declare a dividend (or any other distribution) on its Common Stock payable otherwise than in cash out of its capital surplus or its consolidated retained earnings; 
  
 (2) the Company shall authorize the granting to the holders of its Common Stock of rights or warrants to
subscribe for or purchase any shares of capital stock of any class (or of securities convertible into shares of capital stock of any class) or of any other rights; 
  
 (3) there shall occur any reclassification of the Common Stock of the Company (other than a subdivision or
combination of its outstanding Common Stock, a change in par value, a change from par value to no par value or a change from no par value to par value), or any merger, consolidation, statutory share exchange or combination to which the Company is a
party and for which approval of any shareholders of the Company is required, or the sale, transfer or conveyance of all or substantially all of the assets of the Company; or 
  

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 (4) there shall occur the voluntary or involuntary dissolution, liquidation or winding up
of the Company; 
  
 the Company shall cause to be filed at each office or agency
maintained for the purpose of conversion of securities pursuant to Section 9.2 hereof, and shall cause to be provided to the Trustee and all Holders in accordance with Section 14.2 hereof, at least 20 days (or 10 days in any case specified in clause
(1) or (2) above) prior to the applicable record or effective date hereinafter specified, a notice stating: 
  
 (A) the date on which a record is to be taken for the purpose of such dividend, distribution, rights or warrants, or, if a record is not
to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distribution, rights or warrants are to be determined, or 
  
 (B) the date on which such reclassification, merger, consolidation, statutory share exchange, combination,
sale, transfer, conveyance, dissolution, liquidation or winding up is expected to become effective, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their shares of Common Stock for
securities, cash or other property deliverable upon such reclassification, merger, consolidation, statutory share exchange, sale, transfer, dissolution, liquidation or winding up. 
  
 Neither the failure to give such notice nor any defect therein shall affect the legality or validity of the proceedings or
actions described in clauses (1) through (4) of this Section 12.6. 
  
 SECTION 12.7. Company to Reserve Common Stock. The Company shall at all times use its best efforts to reserve and keep available, free from preemptive rights, out of its authorized but unissued Common Stock, for the purpose of
effecting the conversion of Securities, the full number of shares of fully paid and nonassessable Common Stock then issuable upon the conversion of all Outstanding Securities. 
  
 SECTION 12.8. Taxes on Conversions. Except as provided in the next sentence, the Company will pay any and all taxes
(other than taxes on income) and duties that may be payable in respect of the issue or delivery of shares of Common Stock on conversion of Securities pursuant hereto. A Holder delivering a Security for conversion shall be liable for and will be
required to pay any tax or duty which may be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock in a name other than that of the Holder of the Security or Securities to be converted, and no such issue or
delivery shall be made unless the Person requesting such issue has paid to the Company the amount of any such tax or duty, or has established to the satisfaction of the Company that such tax or duty has been paid. 
  
 SECTION 12.9. Covenant as to Common Stock. The Company covenants that
all shares of Common Stock which may be issued upon conversion of Securities will upon issue be fully paid and nonassessable and, except as provided in Section 12.8, the Company will pay all taxes, liens and charges with respect to the issue
thereof. 
  
 SECTION 12.10. Cancellation of Converted
Securities. All Securities delivered for conversion shall be delivered to the Trustee to be canceled by or at the direction of the Trustee, which shall dispose of the same as provided in Section 2.15. 
  
 SECTION 12.11. Effect of Recapitalization, Reclassification,
Consolidation, Merger or Sale. If any of following events occur, namely: 
  
 (i) any recapitalization, reclassification or change of the outstanding shares of Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of
a subdivision or combination), 
  

 -58- 

 (ii) any merger, consolidation, statutory share exchange or combination of the Company
with another corporation as a result of which holders of Common Stock shall be entitled to receive stock, securities or other property or assets (including cash) with respect to or in exchange for such Common Stock or 
  
 (iii) any sale, conveyance or lease of the properties and
assets of the Company as, or substantially as, an entirety to any other corporation as a result of which holders of Common Stock shall be entitled to receive stock, securities or other property or assets (including cash) with respect to or in
exchange for such Common Stock, 
  
 the Company or the successor or purchasing
corporation, as the case may be, shall execute with the Trustee a supplemental indenture (which shall comply with the TIA as in force at the date of execution of such supplemental indenture if such supplemental indenture is then required to so
comply) providing that each Security shall be convertible into the kind and amount of shares of stock and other securities or property or assets (including cash) which such Holder would have been entitled to receive upon such recapitalization,
reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance had such Securities been converted into Common Stock immediately prior to such recapitalization, reclassification, change, merger,
consolidation, statutory share exchange, combination, sale or conveyance assuming such holder of Common Stock did not exercise its rights of election, if any, as to the kind or amount of securities, cash or other property receivable upon such
recapitalization, reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance (provided that, if the kind or amount of securities, cash or other property receivable upon such recapitalization,
reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance is not the same for each share of Common Stock in respect of which such rights of election shall not have been exercised
(“Non-Electing Share”), then for the purposes of this Section 12.11 the kind and amount of securities, cash or other property receivable upon such recapitalization, reclassification, change, merger, consolidation, statutory share
exchange, combination, sale or conveyance for each Non-Electing Share shall be deemed to be the kind and amount so receivable per share by a plurality of the Non-Electing Shares). Such supplemental indenture shall provide for adjustments which shall
be as nearly equivalent as may be practicable to the adjustments provided for in this Article 12. If, in the case of any such recapitalization, reclassification, change, merger, consolidation, statutory share exchange, combination, sale or
conveyance, the stock or other securities and assets receivable thereupon by a holder of shares of Common Stock includes shares of stock or other securities and assets of a corporation other than the successor or purchasing corporation, as the case
may be, in such recapitalization, reclassification, change, merger, consolidation, statutory share exchange, combination, sale or conveyance, then such supplemental indenture shall also be executed by such other corporation and shall contain such
additional provisions to protect the interests of the Holders of the Securities as the Board of Directors shall reasonably consider necessary by reason of the foregoing, including to the extent practicable the provisions providing for the repurchase
rights set forth in Article 11 hereof. 
  
 The Company shall cause
notice of the execution of such supplemental indenture to be mailed to each Holder, at the address of such Holder as it appears on the Register, within 20 days after execution thereof. Failure to deliver such notice shall not affect the legality or
validity of such supplemental indenture. 
  
 The above provisions
of this Section shall similarly apply to successive recapitalizations, reclassifications, mergers, consolidations, statutory share exchanges, combinations, sales and conveyances. 
  
 If this Section 12.11 applies to any event or occurrence, Section 12.4 hereof shall not apply. 
  
 SECTION 12.12. Responsibility of Trustee for Conversion Provisions.
The Trustee, subject to the provisions of Section 5.1 hereof, and any Conversion Agent shall not at any time be under any duty or responsibility to any Holder of Securities to determine whether any facts exist which may require any 

  

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adjustment of the Conversion Rate, or with respect to the nature or intent of any such adjustments when made, or with respect to the method employed, or
herein or in any supplemental indenture provided to be employed, in making the same. Neither the Trustee, subject to the provisions of Section 5.1 hereof, nor any Conversion Agent shall be accountable with respect to the validity or value (of the
kind or amount) of any Common Stock, or of any other securities or property, which may at any time be issued or delivered upon the conversion of any Security; and it or they do not make any representation with respect thereto. Neither the Trustee,
subject to the provisions of Section 5.1 hereof, nor any Conversion Agent shall be responsible for any failure of the Company to make any cash payment or to issue, transfer or deliver any shares of stock or share certificates or other securities or
property upon the surrender of any Security for the purpose of conversion; and the Trustee, subject to the provisions of Section 5.1 hereof, and any Conversion Agent shall not be responsible or liable for any failure of the Company to comply with
any of the covenants of the Company contained in this Article. 
  
 ARTICLE 13 
  
 SUBORDINATION 
  
 SECTION 13.1. Securities Subordinated to Senior Debt. The Company
covenants and agrees, and each Holder of Securities, by such Holder’s acceptance thereof, likewise covenants and agrees, that the Indebtedness represented by the Securities and the payment of the principal of and premium, if any, and interest
(including Liquidated Damages, if any) on each and all of the Securities is hereby expressly subordinated and junior, to the extent and in the manner set forth and as set forth in this Section 13.1, in right of payment to the prior payment in full
of all Senior Debt ; provided, however, that the Securities, the Indebtedness represented thereby and the payment of the principal of and premium, if any, and interest on the Securities in all respects shall rank equally with, or prior
to, all existing and future Indebtedness of the Company that is expressly subordinated to any Senior Debt. 
  
 (a) In the event of any distribution of assets of the Company upon any dissolution, winding up, liquidation or reorganization of the
Company, whether in bankruptcy, insolvency, reorganization or receivership proceedings or upon an assignment for the benefit of creditors or any other marshalling of the assets and liabilities of the Company or otherwise, the holders of all Senior
Debt shall first be entitled to receive payment of the full amount due thereon in respect of all such Senior Debt and all other amounts due or provision shall be made for such amount in cash, or other payments satisfactory to the holders of Senior
Debt, before the Holders of any of the Securities are entitled to receive any payment or distribution of any character, whether in cash, securities or other property, on account of the principal of or premium, if any, or interest (including
Liquidated Damages, if any) on the Securities. 
  
 (b) In the event of any acceleration of Maturity of the Securities because of an Event of Default, unless the full amount due in respect of all Senior Debt is paid in cash or other form of payment satisfactory to the holders of Senior Debt,
no payment shall be made by the Company with respect to the principal of, premium, if any, or interest (including Liquidated Damages, if any) on the Securities or to acquire any of the Securities (including any redemption, conversion or cash
repurchase pursuant to the exercise of the Repurchase Right or otherwise), and the Company shall give prompt written notice of such acceleration to such holders of Senior Debt. 
  
 (c) In the event of and during the continuance of any default in payment of the principal of or premium, if
any, or interest on, rent or other payment obligation in respect of, any Senior Debt, unless all such payments due in respect of such Senior Debt have been paid in full in cash or other payments satisfactory to the holders of Senior Debt, no payment
shall be made by the Company with respect to the principal of, premium, if any, or interest (including Liquidated Damages, if any) on the Securities or to acquire any of the Securities (including any redemption, conversion or cash repurchase
pursuant to the 

  

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exercise of the Repurchase Right). The Company shall give prompt written notice to the Trustee of any default under any Senior Debt or under any agreement
pursuant to which Senior Debt may have been issued. 
  
 (d) During the continuance of any event of default with respect to any Designated Senior Debt, as such event of default is defined under any such Designated Senior Debt or in any agreement pursuant to which any Designated Senior Debt has
been issued (other than a default in payment of the principal of or premium, if any, or interest on, rent or other payment obligation in respect of any Designated Senior Debt), permitting the holder or holders of such Designated Senior Debt to
accelerate the maturity thereof (or in the case of any lease, permitting the landlord either to terminate the lease or to require the Company to make an irrevocable offer to terminate the lease following an event of default thereunder), no payment
shall be made by the Company, directly or indirectly, with respect to principal of, premium, if any, or interest (including Liquidated Damages, if any) on the Securities for 179 days following notice in writing (a “Payment Blockage
Notice”) to the Company, from any holder or holders of such Designated Senior Debt or their representative or representatives or the trustee or trustees under any indenture or under which any instrument evidencing any such Designated Senior
Debt may have been issued, that such an event of default has occurred and is continuing, unless such event of default has been cured or waived or such Designated Senior Debt has been paid in full in cash or other payment satisfactory to the holders
of such Designated Senior Debt; provided, however, if the maturity of such Designated Senior Debt is accelerated (or in the case of any lease, as a result of such event of default, the landlord under the lease has given the Company
notice of its intention to terminate the lease or to require the Company to make an irrevocable offer to terminate the lease following an event of default thereunder), no payment may be made on the Securities until such Designated Senior Debt has
been paid in full in cash or other payment satisfactory to the holders of such Designated Senior Debt or such acceleration (or termination, in the case of a lease) has been cured or waived. 
  
 For purposes of this Section 13.1(d), such Payment Blockage
Notice shall be deemed to include notice of all other events of default under such indenture or instrument which are continuing at the time of the event of default specified in such Payment Blockage Notice. The provisions of this Section 13.1(d)
shall apply only to one such Payment Blockage Notice given in any period of 365 days with respect to any issue of Designated Senior Debt, and no such continuing event of default that existed or was continuing on the date of delivery of any Payment
Blockage Notice shall be, or shall be made, the basis for a subsequent Payment Blockage Notice. 
  
 (e) In the event that, notwithstanding the foregoing provisions of Sections 13.1(a), 13.1(b), 13.1(c) and 13.1(d), any payment on account
of principal, premium, if any, or interest (including Liquidated Damages, if any) on the Securities shall be made by or on behalf of the Company and received by the Trustee, by any Holder or by any Paying Agent (or, if the Company is acting as its
own Paying Agent, money for any such payment shall be segregated and held in trust): 
  
 (i) after the occurrence of an event specified in Section 13.1(a) or 13.1(b), then, unless all Senior Debt is paid in full in cash, or
provision shall be made therefor, 
  
 (ii) after
the happening of an event of default of the type specified in Section 13.1(c) above, then, unless the amount of such Senior Debt then due shall have been paid in full, or provision made therefor or such event of default shall have been cured or
waived, or 
  
 (iii) after the happening of an
event of default of the type specified in Section 13.1(d) above and delivery of a Payment Blockage Notice, then, unless such event of default shall have been cured or waived or the 179-day period specified in Section 13.1(d) shall have expired,

  
 such payment (subject, in each case, to the provisions of
Section 13.7 hereof) shall be held in trust for the benefit of, and shall be immediately paid over to, the holders of Designated Senior Debt (unless an event 

  

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described in Section 13.1(a), (b) or (c) has occurred, in which case the payment shall be held in trust for the benefit of, and shall be immediately paid
over to all holders of Senior Debt) or their representative or representatives or the trustee or trustees under any indenture under which any instruments evidencing any of the Designated Senior Debt or Senior Debt, as the case may be, may have been
issued, as their interests may appear. 
  
 SECTION 13.2.
Subrogation. Subject to the payment in full of all Senior Debt to which the Indebtedness evidenced by the Securities is in the circumstances subordinated as provided in Section 13.1 hereof, the Holders of the Securities shall be subrogated to
the rights of the holders of such Senior Debt to receive payments or distributions of cash, property or securities of the Company applicable to such Senior Debt until all amounts owing on the Securities shall be paid in full, and, as between the
Company, its creditors other than holders of such Senior Debt, and the Holders of the Securities, no such payment or distribution made to the holders of Senior Debt by virtue of this Article which otherwise would have been made to the holders of the
Securities shall be deemed to be a payment by the Company on account of such Senior Debt; provided, however, that the provisions of this Article are and are intended solely for the purpose of defining the relative rights of the Holders
of the Securities, on the one hand, and the holders of Senior Debt, on the other hand. 
  
 SECTION 13.3. Obligation of the Company Is Absolute and Unconditional. Nothing contained in this Article or elsewhere in this Indenture or in the Securities is intended to or shall impair, as between the
Company, its creditors other than the holders of Senior Debt, and the Holders of the Securities, the obligation of the Company, which is absolute and unconditional, to pay to the Holders of the Securities the principal of and premium, if any, and
interest (including Liquidated Damages, if any) on the Securities as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the Holders of the Securities and creditors
of the Company other than the holders of Senior Debt, nor shall anything contained herein or therein prevent the Trustee or the Holder of any Security from exercising all remedies otherwise permitted by applicable law upon default under this
Indenture, subject to the rights, if any, under this Article of the holders of Senior Debt in respect of cash, property or securities of the Company received upon the exercise of any such remedy. 
  
 SECTION 13.4. Maturity of or Default on Senior Debt. Upon the maturity
of any Senior Debt by lapse of time, acceleration or otherwise, all principal of or premium, if any, or interest on, rent or other payment obligations in respect of all such matured Senior Debt shall first be paid in full, or such payment shall have
been duly provided for, before any payment on account of principal, or premium, if any, or interest (including Liquidated Damages, if any) is made upon the Securities. 
  
 SECTION 13.5. Payments on Securities Permitted. Except as expressly provided in this Article, nothing contained in
this Article shall affect the obligation of the Company to make, or prevent the Company from making, payments of the principal of, or premium, if any, or interest (including Liquidated Damages, if any) on the Securities in accordance with the
provisions hereof and thereof, or shall prevent the Trustee or any Paying Agent from applying any moneys deposited with it hereunder to the payment of the principal of, or premium, if any, or interest (including Liquidated Damages, if any) on the
Securities. 
  
 SECTION 13.6. Effectuation of Subordination by
Trustee. Each Holder of Securities, by such Holder’s acceptance thereof, authorizes and directs the Trustee on such Holder’s behalf to take such action as may be necessary or appropriate to effectuate the subordination provided in this
Article and appoints the Trustee such Holder’s attorney-in-fact for any and all such purposes. 
  
 Upon any payment or distribution of assets of the Company referred to in this Article, the Trustee and the Holders of the Securities shall be entitled to
rely upon any order or decree made by any court of competent jurisdiction in which any such dissolution, winding up, liquidation or reorganization proceeding 

  

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affecting the affairs of the Company is pending or upon a certificate of the trustee in bankruptcy, receiver, assignee for the benefit of creditors,
liquidating trustee or agent or other Person making any payment or distribution, delivered to the Trustee or to the Holders of the Securities, for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, and
as to other facts pertinent to the right of such Persons under this Article, and if such evidence is not furnished, the Trustee may defer any payment to such Persons pending judicial determination as to the right of such Persons to receive such
payment. 
  
 SECTION 13.7. Knowledge of Trustee.
Notwithstanding the provision of this Article or any other provisions of this Indenture, the Trustee shall not be charged with knowledge of the existence of any Senior Debt, of any default in payment of principal of, premium, if any, or interest on,
rent or other payment obligation in respect of any Senior Debt, or of any facts which would prohibit the making of any payment of moneys to or by the Trustee, or the taking of any other action by the Trustee, unless a Responsible Officer of the
Trustee having responsibility for the administration of the trust established by this Indenture shall have received written notice thereof from the Company, any Holder of Securities, any Paying or Conversion Agent of the Company or the holder or
representative of any class of Senior Debt, and, prior to the receipt of any such written notice, the Trustee shall be entitled in all respects to assume that no such default or facts exist; provided, however, that unless on the third
Business Day prior to the date upon which by the terms hereof any such moneys may become payable for any purpose the Trustee shall have received the notice provided for in this Section 13.7, then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive such moneys and apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary which may be received by it on or after
such date. 
  
 SECTION 13.8. Trustee’s Relation to Senior
Debt. The Trustee shall be entitled to all the rights set forth in this Article with respect to any Senior Debt at the time held by it, to the same extent as any other holder of Senior Debt and nothing in this Indenture shall deprive the Trustee
of any of its rights as such holder. 
  
 Nothing contained in this
Article shall apply to claims of or payments to the Trustee under or pursuant to Section 5.8 hereof. 
  
 With respect to the holders of Senior Debt, the Trustee undertakes to perform or to observe only such of its covenants and obligations as are specifically
set forth in this Article, and no implied covenants or obligations with respect to the holders of Senior Debt shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
Debt and the Trustee shall not be liable to any holder of Senior Debt if it shall pay over or deliver to Holders, the Company or any other Person moneys or assets to which any holder of Senior Debt shall be entitled by virtue of this Article or
otherwise. 
  
 SECTION 13.9. Rights of Holders of Senior Debt
Not Impaired. No right of any present or future holder of any Senior Debt to enforce the subordination herein shall at any time or in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any
noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof any such holder may have or be otherwise charged with. 
  
 SECTION 13.10. Modification of Terms of Senior Debt. Any renewal or extension of the time of payment of any Senior
Debt or the exercise by the holders of Senior Debt of any of their rights under any instrument creating or evidencing Senior Debt, including without limitation the waiver of default thereunder, may be made or done all without notice to or assent
from the Holders of the Securities or the Trustee. 
  
 No
compromise, alteration, amendment, modification, extension, renewal or other change of, or waiver, consent or other action in respect of, any liability or obligation under or in respect of, or of any of the 

  

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terms, covenants or conditions of any indenture or other instrument under which any Senior Debt is outstanding or of such Senior Debt, whether or not such
release is in accordance with the provisions or any applicable document, shall in any way alter or affect any of the provisions of this Article or of the Securities relating to the subordination thereof. 
  
 SECTION 13.11. Certain Conversions Not Deemed Payment. For the
purposes of this Article 13 only: 
  
 (1) the
issuance and delivery of junior securities upon conversion of Securities in accordance with Article 12 hereof shall not be deemed to constitute a payment or distribution on account of the principal of, premium, if any, or interest (including
Liquidated Damages, if any) on Securities or on account of the purchase or other acquisition of Securities, and 
  
 (2) the payment, issuance or delivery of cash (except in satisfaction of fractional shares pursuant to Section 12.3 hereof), property or
securities (other than junior securities) upon conversion of a Security shall be deemed to constitute payment on account of the principal of, premium, if any, or interest (including Liquidated Damages, if any) on such Security. 
  
 For the purposes of this Section 13.11, the term “junior
securities” means: 
  
 (a) shares of any
common stock of the Company or 
  
 (b) other
securities of the Company that are subordinated in right of payment to all Senior Debt that may be outstanding at the time of issuance or delivery of such securities to substantially the same extent as, or to a greater extent than, the Securities
are so subordinated as provided in this Article. 
  
 Nothing
contained in this Article 13 or elsewhere in this Indenture or in the Securities is intended to or shall impair, as among the Company, its creditors (other than holders of Senior Debt) and the Holders of Securities, the right, which is absolute and
unconditional, of the Holder of any Security to convert such Security in accordance with Article 12 hereof. 
  
 SECTION 13.12. Relation to Other Indebtedness. The Securities shall be “Designated Senior Debt” for purposes of the indenture governing
the Company’s 43⁄4% Convertible Subordinated Notes due 2007. Additionally, the Securities shall rank on parity with the Company’s outstanding 2.0% Senior Subordinated Convertible Debentures due 2023. 
  
 ARTICLE 14 
  
 OTHER PROVISIONS OF GENERAL APPLICATION 
  
 SECTION 14.1. Trust Indenture Act Controls. This Indenture is subject
to the provisions of the TIA which are required to be part of this Indenture, and shall, to the extent applicable, be governed by such provisions. 
  

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 SECTION 14.2. Notices. Any notice or communication to the Company or the Trustee is duly given if
in writing and delivered in person or mailed by first-class mail to the address set forth below: 
  

	 	(a)	if to the Company: 

  
 CV Therapeutics, Inc. 
 3172 Porter Drive

 Palo Alto, California 94304 
 Attention: General Counsel 
  
 with a copy (which shall
not constitute notice) to: 
  
 Latham & Watkins LLP

 135 Commonwealth Drive 
 Menlo
Park, CA 94025 
 Attention: Alan C. Mendelson 
  

	 	(b)	if to the Trustee: 

  
 Wells Fargo Bank, National Association 
 Sixth
& Marquette Avenue 
 MAC N9303-120 
 Minneapolis, MN 55479 
 Attention: Corporate Trust Services 
  
 The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or
communications. 
  
 Any notice or communication to a Holder shall
be mailed by first-class mail to his address shown on the Register kept by the Registrar. Failure to mail a notice or communication to a Holder or any defect in such notice or communication shall not affect its sufficiency with respect to other
Holders. 
  
 If a notice or communication is mailed or sent in the
manner provided above within the time prescribed, it is duly given as of the date it is mailed, whether or not the addressee receives it, except that notice to the Trustee shall only be effective upon receipt thereof by the Trustee. 
  
 If the Company mails a notice or communication to Holders, it shall mail a
copy to the Trustee at the same time. 
  
 SECTION 14.3.
Communication by Holders with Other Holders. Holders may communicate pursuant to Section 312(b) of the TIA with other Holders with respect to their rights under the Securities or this Indenture. The Company, the Trustee, the Registrar and
anyone else shall have the protection of Section 312(c) of the TIA. 
  
 SECTION 14.4. Acts of Holders of Securities. 
  
 (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders of Securities may be embodied in and evidenced by: 
  
 (1) one or more instruments of substantially similar tenor
signed by such Holders in person or by agent or proxy duly appointed in writing; 
  

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 (2) the record of Holders of Securities voting in favor thereof, either in person or by
proxies duly appointed in writing, at any meeting of Holders of Securities duly called and held in accordance with the provisions of Article 8; or 
  
 (3) a combination of such instruments and any such record. 
  
 Except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments or
record or both are delivered to the Trustee and, where it is hereby expressly required, to the Company. Such instrument or instruments and record (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the
“Act” of the Holders of Securities signing such instrument or instruments and so voting at such meeting. Proof of execution of any such instrument or of a writing appointing any such agent or proxy, or of the holding by any Person of a
Security, shall be sufficient for any purpose of this Indenture and (subject to Section 5.1 hereof) conclusive in favor of the Trustee and the Company if made in the manner provided in this Section. The record of any meeting of Holders of Securities
shall be proved in the manner provided in Section 8.6 hereof. 
  
 (b) The fact and date of the execution by any Person of any such instrument or writing may be provided in any manner which the Trustee reasonably deems sufficient. 
  
 (c) The principal amount and serial numbers of Securities held by any Person, and the date of such Person holding the same,
shall be proved by the Register. 
  
 (d) Any request, demand,
authorization, direction, notice, consent, election, waiver or other Act of the Holders of any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in
exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such Security. 
  
 SECTION 14.5. Certificate and Opinion as to Conditions Precedent. In
any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so
certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters
in one or several documents. 
  
 Any certificate or opinion of an
officer of the Company may be based, insofar as it relates to legal matters, upon an Opinion of Counsel, unless such officer knows, or in the exercise of reasonable care should know, that the Opinion of Counsel with respect to the matters upon which
such certificate or opinion is based is erroneous. Any such Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or representations by, an officer or officers of the Company stating that the information with
respect to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or representations with respect to such matters are erroneous. 
  
 Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
  
 Upon any application or request by the Company to the Trustee to take any action under any provision of this Indenture, the
Company shall furnish to the Trustee an Officers’ Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied 

  

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with and an Opinion of Counsel stating that in the opinion of such Counsel all such conditions precedent, if any, have been complied with, except that in the
case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be
furnished. 
  
 SECTION 14.6. Statements Required in Certificate
or Opinion. Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include: 
  
 (1) a statement that each individual signing such certificate or opinion on behalf of the Company has read such covenant or condition and
the definitions herein relating thereto; 
  
 (2)
a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
  
 (3) a statement that, in the opinion of each such individual, he has made such examination or investigation
as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (4) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with. 
  
 SECTION 14.7. Effect of Headings and Table of Contents. The Article
and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 
  
 SECTION 14.8. Successors and Assigns. All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether
so expressed or not. 
  
 SECTION 14.9. Separability Clause.
In case any provision in this Indenture or the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 SECTION 14.10. Benefits of Indenture. Nothing contained in this
Indenture or in the Securities, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, the holders of Senior Debt and the Holders of Securities, any benefit or legal or equitable right, remedy or
claim under this Indenture. 
  
 SECTION 14.11. Governing
Law. THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 SECTION 14.12. Counterparts. This instrument may be executed in any number of counterparts, each of which when so executed shall be deemed to be an
original but all such counterparts shall together constitute but one and the same instrument. 
  
 SECTION 14.13. Legal Holidays. In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any Security or the last day on which a Holder of a Security has a right to convert such
Security shall not be a Business Day at any Place of Payment or Place of Conversion, then (notwithstanding any other provision of this Indenture or of the Securities) payment of interest (including Liquidated Damages, if any) or principal or
premium, if any, or conversion of the Securities, need not be made at such Place of Payment or Place of Conversion on such day, but may be made on the next succeeding Business Day at such Place of Payment or Place of Conversion with the same force
and effect as if made on the Interest Payment 

  

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Date or Redemption Date or at the Stated Maturity or on such last day for conversion; provided, however, that in the case that payment is made
on such succeeding Business Day, no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be. 
  
 SECTION 14.14. Recourse Against Others. No recourse for the payment of
the principal of or premium, if any, or interest (including Liquidated Damages, if any) on any Security, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, shareholder, officer or director, as
such, past, present or future, of the Company or of any successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance
thereof and as part of the consideration for the issue thereof, expressly waived and released. 
  

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 SIGNATURES 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed all as of the day and year first above written. 
  

			
	 CV THERAPEUTICS, INC., as Issuer

		
	By:	 	 /s/    LOUIS G. LANGE

	 	 	 Name: Louis G. Lange, M.D., Ph.D.

	 	 	 Title: Chairman and Chief Executive Officer

  

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

		
	 By:
	 	 /s/    MICHAEL T. LECHNER

	 	 	 Name: Michael T. Lechner

	 	 	 Title: Assistant Vice President

  

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 EXHIBIT A 
  

FORM OF SECURITY 
  
 [FACE OF SECURITY] 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO CV THERAPEUTICS, INC. (OR ITS
SUCCESSOR) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, CONVERSION OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR OF SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.1 
  
 THIS SECURITY
AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY, THE SHARES OF
COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE
144A THEREUNDER. 
  
 THE HOLDER OF THIS SECURITY, BY ITS
ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH CV
THERAPEUTICS, INC. OR ANY AFFILIATE OF CV THERAPEUTICS, INC. WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) ONLY (A) TO CV THERAPEUTICS, INC. OR ANY SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO
WHICH NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO AN INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(A)(1), (2) OR (7) UNDER THE SECURITIES ACT (“INSTITUTIONAL ACCREDITED
INVESTOR”) THAT IS ACQUIRING THIS SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION, AND THAT, PRIOR TO SUCH TRANSFER, DELIVERS TO THE COMPANY AND THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO
THE RESTRICTIONS ON TRANSFER OF THE SECURITY EVIDENCED HEREBY (THE FORM OF WHICH LETTER MAY BE OBTAINED BY THE TRUSTEE), 

	1	This legend should be included only if the Security is issued in global form. 

  

 A-1 

 (D) OUTSIDE THE U.S. IN A TRANSACTION COMPLYING WITH THE PROVISIONS OF RULE 904 UNDER THE SECURITIES ACT (E) PURSUANT TO
A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO CV THERAPEUTICS, INC.’S AND THE
TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (F) ABOVE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A
CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

  

 A-2 

 CV THERAPEUTICS, INC. 
 23⁄4% Senior Subordinated Convertible Note due 2012 
  
 CUSIP NO.              
  
 $                     
  
 No.
                     
  
 CV THERAPEUTICS, INC., a Delaware corporation (the “Company”, which term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay
to                                        
                                         , or its
registered assigns, the principal sum of
                                     U.S. Dollars
($             ) on May 16, 2012. 
  
 Interest Payment Dates: May 16 and November 16, commencing November 16, 2004. 
  
 Regular Record Dates: May 2 and November 2. 
  
 Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
  

 A-3 

 IN WITNESS WHEREOF, the Company has caused this Security to be duly executed manually or by facsimile by
its duly authorized officers. 
  

									
	 Dated:
	 	 	 	 CV THERAPEUTICS, INC.

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 Title:

  
 Trustee’s
Certificate of Authentication 
  
 This is one of the 23⁄4%
Senior Subordinated Convertible Notes due 2012 described in the within-named Indenture. 
  

									
	 	 	 	 	 	 	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as Trustee

					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	Authorized Signatory

  
 Dated: 
  

 A-4 

 [REVERSE OF SECURITY] 
  
 CV THERAPEUTICS, INC. 
  
 23⁄4% Senior Subordinated Convertible Note due 2012 
  
 Capitalized terms used herein but not defined shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

  
 1. Principal and Interest. CV Therapeutics, Inc., a
Delaware corporation (the “Company”), promises to pay interest on the principal amount of this Security at the Interest Rate from the date of issuance until repayment at Maturity, redemption or repurchase. The Company shall pay interest on
this Security semiannually in arrears on May 16 and November 16 of each year (each an “Interest Payment Date”), commencing November 16, 2004. 
  
 Interest on this Security shall be computed on the basis of a 360-day year of twelve 30-day months and for any period shorter than a full semiannual
period for which interest is calculated, on the basis of a 30-day month and, for such periods of less than a month, the actual number of days elapsed over a 30-day month. 
  
 A Holder of any Security at the close of business on a Regular Record Date shall be entitled to receive interest on such
Security on the corresponding Interest Payment Date. A Holder of any Security which is converted after the close of business on a Regular Record Date and prior to the corresponding Interest Payment Date (other than any Security whose Maturity is
prior to such Interest Payment Date) shall be entitled to receive interest (including Liquidated Damages, if any) on the principal amount of such Security, notwithstanding the conversion of such Security prior to such Interest Payment Date. However,
any such Holder which surrenders any such Security for conversion during the period between the close of business on such Regular Record Date and ending with the opening of business on the corresponding Interest Payment Date shall be required to pay
the Company an amount equal to the interest (including Liquidated Damages, if any) on the principal amount of such Security so converted (but excluding any overdue interest on the principal amount of such Security so converted that exists at the
time such Holder surrenders such Security for conversion), which is payable by the Company to such Holder on such Interest Payment Date, at the time such Holder surrenders such Security for conversion. Notwithstanding the foregoing, any such Holder
which surrenders for conversion any Security (a) which has been called for redemption by the Company in a notice of redemption given by the Company pursuant to Section 10.4 of the Indenture on a Redemption Date after such Regular Record Date and on
or prior to the next succeeding Interest Payment Date or (b) with respect to which the Company has specified a Repurchase Date that is after such Regular Record Date and on or prior to the next succeeding Interest Payment Date, in either case, shall
be entitled to receive (and retain) such interest (including Liquidated Damages, if any) and need not pay the Company an amount equal to the interest (including Liquidated Damages, if any) on the principal amount of such Security so converted at the
time such Holder surrenders such Security for conversion. 
  
 In
accordance with the terms of the Registration Rights Agreement, the Interest Rate borne by this Security shall be increased by 0.25% during the first 90 days following a Registration Default (as defined in the Registration Rights Agreement).

  
 From and after the 91st day following such Registration
Default, the Interest Rate borne by this Security shall be increased by 0.50%. In no event shall the Interest Rate borne by this Security be increased by more than 0.50%. 
  

 A-5 

 Any amount of additional interest shall be payable in cash semiannually, in arrears, on each Interest
Payment Date and shall cease to accrue on the date the Registration Default is cured. The Holder of this Security is entitled to the benefits of the Registration Rights Agreement. 
  
 2. Method of Payment. Interest on any Security which is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest. 
  
 Principal of, and premium, if any, and interest on, Global Securities shall
be payable to the Depositary in immediately available funds. 
  
 Principal of and premium, if any, on Physical Securities shall be payable at the office or agency of the Company maintained for such purpose, initially the Corporate Trust Office of the Trustee. Interest on Physical Securities shall be
payable by (i) U.S. Dollar check drawn on a bank located in the city where the Corporate Trust Office of the Trustee is located mailed to the address of the Person entitled thereto as such address shall appear in the Register, or (ii) upon
application to the Registrar not later than the relevant Record Date by a Holder of an aggregate principal amount of Securities in excess of $5,000,000, wire transfer in immediately available funds. 
  
 3. Paying Agent and Registrar. Initially, Wells Fargo Bank, National
Association, the Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change the Paying Agent or Registrar without notice to any Holder. 
  
 4. Indenture. The Company issued this Security under an Indenture, dated as of May 18, 2004 (the
“Indenture”), between the Company and Wells Fargo Bank, National Association, as trustee (the “Trustee”). The terms of this Security include those stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended (“TIA”). This Security is subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of all such terms. To the extent permitted by applicable law, in the event
of any inconsistency between the terms of this Security and the terms of the Indenture, the terms of the Indenture shall control. 
  
 5. Optional Redemption. This Security is not redeemable prior to May 20, 2009. This Security may be redeemed in whole or in part, upon not less
than 20 nor more than 60 days’ notice, at any time on or after May 20, 2009, at the option of the Company, at the redemption prices (expressed as a percentage of the principal amount) set forth below if redeemed during the periods described
below, plus any interest accrued but not paid prior to, but excluding, the Redemption Date. 
  

			
	 Period

	  	Redemption Price

	 Beginning May 20, 2009 and ending on May 15, 2010
	  	101.031%
	 Beginning May 16, 2010 and ending on May 15, 2011
	  	100.688%
	 Beginning May 16, 2011 and ending on May 15, 2012
	  	100.344%
	 Beginning on May 16, 2012 and thereafter
	  	100.000%

  
 If fewer than all the
Securities are to be redeemed, the Trustee shall select the particular Securities to be redeemed from the Outstanding Securities by the methods as provided in the Indenture. If any Security selected for partial redemption is converted in part before
termination of the conversion right with respect to the portion of the Security so selected, the converted portion of such Security shall be deemed to be the portion selected for redemption (provided, however, that the Holder of such
Security so converted and deemed redeemed shall not be entitled to any additional interest payment as a result of such deemed redemption than such Holder would have otherwise been entitled to receive upon conversion of such 

  

 A-6 

 
Security). Securities which have been converted during a selection of Securities to be redeemed may be treated by the Trustee as Outstanding for the purpose
of such selection. 
  
 On and after the Redemption Date, interest
shall cease to accrue on Securities or portions of Securities called for redemption, unless the Company defaults in the payment of the Optional Redemption Price and accrued and unpaid interest. 
  
 Notice of redemption shall be given by the Company to the Holders as provided
in the Indenture. 
  
 6. Repurchase Rights. 
  
 (a) Repurchase Right Upon a Fundamental Change. If a Fundamental
Change occurs, the Holder of Securities, at the Holder’s option, shall have the right, in accordance with the provisions of the Indenture, to require the Company to repurchase the Securities (or any portion of the principal amount hereof that
is at least $1,000 or an integral multiple thereof; provided, however, that the portion of the principal amount of this Security to be Outstanding after such repurchase is at least equal to $1,000) at a purchase price equal to 100% of
the principal amount of the Securities to be repurchased (the “Repurchase Price”), plus interest accrued and unpaid to, but excluding, the Repurchase Date. 
  
 If there shall have occurred a Fundamental Change which is also a Cash Buy-Out, and a Holder exercises its Repurchase Right,
the Company shall pay to such Holder an amount in cash or Common Stock, at the option of the Company, equal to the Make-Whole Premium, in addition to the Repurchase Price. 
  
 A Company Notice shall be given by the Company to the Holders as provided in the Indenture. To exercise a Repurchase Right,
a Holder must deliver to the Trustee a written notice as provided in the Indenture. 
  
 (b) Payment of Repurchase Price and Make-Whole Premium. Subject to the fulfillment by the Company of the conditions set forth in the Indenture, the Company may elect to pay the Repurchase Price or Make-Whole
Premium, as the case may be, by delivering the number of shares of Common Stock equal to (i) the Repurchase Price or the Make-Whole Premium, as applicable, divided by (ii) 95% of the average of the daily volume-weighted average price of the Common
Stock for the twenty consecutive Trading Days immediately preceding and including the third Business Day prior to the Repurchase Date (if the third Business Day prior to the applicable Repurchase Date is a Trading Day, or if not, then on the last
Trading Day prior to the third Business Day), appropriately adjusted to take into account the occurrence, during the period commencing on the first Trading Day during the twenty Trading-Day period and ending on the Repurchase Date of any event that
would result in an adjustment to the conversion rate set forth in the Indenture. No fractional shares of Common Stock will be issued upon repurchase of any Securities. Instead of any fractional share of Common Stock which would otherwise be issued
upon conversion of such Securities, the Company shall pay a cash adjustment as provided in the Indenture. 
  
 7. Conversion Rights. (a) Subject to and upon compliance with the provisions of the Indenture, the Holder of Securities shall be entitled, at such
Holder’s option, at any time before the close of business on May 16, 2012, to convert the Holder’s Securities (or any portion of the principal amount hereof which is $1,000 or an integral multiple thereof), at the principal amount thereof
or of such portion thereof, into duly authorized, fully paid and nonassessable shares of Common Stock of the Company at the Conversion Rate in effect at the time of conversion. 
  
 (b) In the case of a Security (or a portion thereof) called for redemption, such conversion right in respect of the Security
(or such portion thereof) so called shall expire at the close of business on the Business Day immediately preceding the Redemption Date, unless the Company defaults in making the 

  

 A-7 

 
payment due upon redemption. In the case of a Fundamental Change for which the Holder exercises its Repurchase Right with respect to a Security (or a portion
thereof), such conversion right in respect of the Security (or portion thereof) shall expire at the close of business on the Business Day preceding the Repurchase Date. 
  
 Subject to certain conditions provided for in the Indenture, in certain circumstances, a Holder may receive an amount in
cash or Common Stock, at the option of the Company, equal to the Make-Whole Premium, in addition to the shares of Common Stock issuable on conversion of such Security. 
  
 (c) The Conversion Rate shall be initially equal to 56.5475 shares of Common Stock per $1,000 principal amount to
Securities. The Conversion Rate shall be adjusted under certain circumstances as provided in the Indenture. 
  
 (d) No fractional shares of Common Stock shall be issued upon conversion of any Securities. Instead of any fractional share of Common Stock which would
otherwise be issued upon conversion of such Securities, the Company shall pay a cash adjustment as provided in the Indenture. 
  
 8. Subordination. The Indebtedness evidenced by this Security is, to the extent and in the manner provided in the Indenture, subordinated and
subject in right of payment to the prior payment in full of all amounts then due on all Senior Debt of the Company; provided, however, that the Securities, the Indebtedness represented thereby and the payment of the principal of and
premium, if any, and interest on the Securities in all respects shall rank equally with, or prior to, all existing and future Indebtedness of the Company that is expressly subordinated to any Senior Debt, and this Security is issued subject to such
provisions of the Indenture with respect thereto. Each Holder of this Security, by accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on such Holder’s behalf to take such action as
may be necessary or appropriate to effectuate the subordination so provided and (c) appoints the Trustee such Holder’s attorney-in-fact for any and all such purposes. 
  
 9. Denominations; Transfer; Exchange. The Securities are issuable in registered form, without coupons, in
denominations of $1,000 and integral multiples of $1,000 in excess thereof. A Holder may register the transfer or exchange of Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. 
  
 In the event of a redemption in part, the Company shall not be required (a) to register the transfer of, or exchange, Securities for a period of 15 days
immediately preceding the date notice is given identifying the serial numbers of the Securities called for such redemption, or (b) to register the transfer of, or exchange, any such Securities, or portion thereof, called for redemption. 

 
 In the event of redemption, conversion or repurchase of the Securities in
part only, a new Security or Securities for the unredeemed, unconverted or unrepurchased portion thereof shall be issued in the name of the Holder hereof. 
  
 10. Persons Deemed Owners. The registered Holder of this Security shall be treated as its owner for all purposes. 
  
 11. Unclaimed Money. The Trustee and the Paying Agent shall pay to the
Company any money held by them for the payment of principal, premium, if any, or interest that remains unclaimed for two years after the date upon which such payment shall have become due. After payment to the Company, Holders entitled to the money
must look to the Company for payment as general creditors unless an applicable 

  

 A-8 

 
abandoned property law designates another Person, and all liability of the Trustee and the Paying Agent with respect to such money shall cease. 

 
 12. Discharge Prior to Redemption or Maturity. Subject to certain
conditions contained in the Indenture, the Company may discharge its obligations under the Securities and the Indenture if (1) (a) all of the Outstanding Securities shall become due and payable at their scheduled Maturity within one year or (b) all
of the Outstanding Securities are scheduled for redemption within one year, and (2) the Company shall have deposited with the Trustee money and/or U.S. Government Obligations sufficient to pay the principal of, and premium, if any, and interest on,
all of the Outstanding Securities on the date of Maturity or redemption, as the case may be. 
  
 13. Amendment; Supplement; Waiver. The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of
the Holders of the Securities under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in aggregate principal amount of the Outstanding Securities (or such lesser amount as shall have acted at a
meeting pursuant to the provisions of the Indenture). The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities at the time Outstanding, on behalf of the Holders of all the
Securities, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding
upon such Holder and upon all future Holders of this Security and of any Security issued upon registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security or
such other Security. 
  
 No reference herein to the Indenture and
no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and premium, if any, and interest (including Liquidated Damages, if any) on this
Security at the times, places and rate, and in the coin or currency, herein prescribed or to convert this Security (or pay cash in lieu of conversion) as provided in the Indenture. 
  
 14. Defaults and Remedies. The Indenture provides that an Event of Default with respect to the Securities occurs when
any of the following occurs: 
  
 (a) the Company
defaults in the payment of the principal of or premium, if any, on any of the Securities when it becomes due and payable, at Maturity, upon redemption or exercise of a Repurchase Right or otherwise, whether or not such payment is prohibited by the
subordination provisions of Article 13 of the Indenture; or 
  
 (b) the Company defaults in the payment of interest on any of the Securities when it becomes due and payable and such default continues for a period of 30 days, whether or not such payment is prohibited by the
subordination provisions of Article 13 of the Indenture; provided, however, that the Company’s failure to pay interest (including Liquidated Damages, if any) on any of the Securities within five Business Days of any Interest
Payment Date prior to and including May 16, 2007 shall constitute an immediate Event of Default; or 
  
 (c) the Company fails to deliver shares of Common Stock, together with cash instead of fractional shares, when those shares of Common
Stock or cash instead of fractional shares is required to be delivered following conversion of a Security in accordance with the provisions of Article 12 of the Indenture; or 
  

 A-9 

 (d) the Company fails to perform or observe any other term, covenant or agreement
contained in the Securities or the Indenture and such default continues for a period of 60 days after written notice of such failure is given as specified in the Indenture; or 
  
 (e) (i) the Company fails to make any payment by the end of the applicable grace period, if any, after the
maturity of any Indebtedness for borrowed money in an amount in excess of $5,000,000, or (ii) there is an acceleration of any Indebtedness for borrowed money in an amount in excess of $5,000,000 because of a default with respect to such Indebtedness
without such Indebtedness having been discharged or such acceleration having been cured, waived, rescinded or annulled, in the case of either clause (i) or (ii) above, for a period of 30 days after written notice is given to the Company as specified
in the Indenture; or 
  
 (f) the failure to
provide the Company Notice in accordance with the terms of Section 11.3(a) of the Indenture; or 
  
 (g) there are certain events of bankruptcy, insolvency or reorganization of the Company; or 
  
 (h) the Pledge and Escrow Agreement ceases to be in full
force and effect or enforceable prior to its expiration in accordance with its terms. 
  
 If an Event of Default shall occur and be continuing, the principal of all the Securities may be declared due and payable in the manner and with the effect provided in the Indenture. 
  
 15. Authentication. This Security shall not be valid until the Trustee
(or authenticating agent) executes the certificate of authentication on the other side of this Security. 
  
 16. Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors Act). 
  
 17. Additional Rights of Holders of Transfer Restricted Securities. In addition to the rights provided to Holders
under the Indenture, Holders of Transfer Restricted Securities shall have all the rights set forth in the Registration Rights Agreement. 
  
 18. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on this Security and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on this Security or as contained
in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
  
 19. Governing Law. The Indenture and this Security shall be governed by, and construed in accordance with, the law of the State of New York.

  
 20. Successor Corporation. In the event a successor
corporation assumes all the obligations of the Company under this Security, pursuant to the terms hereof and of the Indenture, the Company shall be released from all such obligations. 
  

 A-10 

 ASSIGNMENT FORM 
  
 To assign this Security, fill in the form below and have your signature guaranteed: (I) or (we) assign and transfer this
Security to: 
  

	
	_____________________________________________
	(Insert assignee’s soc. sec. or tax I.D. no.)

  

	
	_____________________________________________
	(Print or type assignee’s name, address and zip code)

  
 and irrevocably
appoint                                       
                                        
                                        
                                        
                                        
              
 to transfer this Security on the books of the Company. The agent may
substitute another to act for him. 
  

									
				
	 Dated: __________
	 	 	 	Your Name:	 	 
	 	 	 	 	 	 	 	 	(Print your name exactly as it appears on the face of this Security)
					
	 	 	 	 	 	 	 Your Signature:
	 	 
	 	 	 	 	 	 	 	 	(Sign exactly as your name appears on the face of this Security)

  
 Signature
Guarantee*: 
  

			
		
	By:	 	 
	 	 	 

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  
 In connection with any transfer of this Security occurring prior to the end of the period
referred to in Rule 144(k) under the Securities Act, the undersigned confirms that without utilizing any general solicitation or general advertising: 
  
 [Check One] 
  
  ̈ (a) this Security is being transferred in compliance with the exemption from registration under the Securities
Act of 1933, as amended, provided by Rule 144A thereunder. 
  
 or 
  
  ̈ (b) this Security is being transferred in compliance with the exemption from registration under the Securities Act of 1933, as amended, provided by Regulation D thereunder. 
  
 or 
  

 ̈ (c) this Security is being transferred in compliance with
the exemption from registration under the Securities Act of 1933, as amended, provided by Regulation S thereunder. 
  
 or 
  
  ̈ (d) this Security is being transferred other than in accordance with (a), (b) or (c) above and documents are being furnished which
comply with the conditions of transfer set forth in this Security and the Indenture. 
  

 A-11 

 If none of the foregoing boxes is checked, the Trustee or other Registrar shall not be obligated to register this
Security in the name of any Person other than the Holder hereof unless the conditions to any such transfer of registration set forth herein and in Sections 2.7, 2.8 and 2.9 of the Indenture shall have been satisfied. 
  
 Dated:
                     
  
 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within-mentioned instrument in every particular, without alteration
or any change whatsoever. 
  

					
	 Signature Guarantee:
	 	__________________________________________________________________	  	 
	 	 	Signature must be guaranteed by a participant in a recognized signature
guaranty medallion program or other signature guarantor acceptable to the
Trustee.	  	 

  
 TO BE COMPLETED BY PURCHASER IF (a)
ABOVE IS CHECKED. 
  
 The undersigned represents and warrants that it is
purchasing this Security for its own account or an account with respect to which it exercises sole investment discretion, in each case for investment and not with a view to distribution, and that it and any such account is a “Qualified
Institutional Buyer” within the meaning of Rule 144A under the Securities Act of 1933 and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption from
registration provided by Rule 144A. 
  
 Dated:
                     
  
 NOTICE: To be executed by an executive officer 
  
 TO BE COMPLETED BY PURCHASER IF (b) ABOVE IS CHECKED. 
  
 The undersigned represents and warrants that it is purchasing this Security for its own account or an account with respect to which it exercises sole investment
discretion, in each case for investment and not with a view to distribution, and that the undersigned has no present intention of distributing or reselling this Security (other than in an offering registered under the Securities Act or pursuant to
an exemption under the Securities Act). The undersigned further represents that it is an institution that is an “accredited investor” as that term is defined in Rule 501 of Regulation D under the Securities Act or any successor regulation
thereunder. 
  
 Dated:
                     
  
 NOTICE: To be executed by an executive officer 
  
 TO BE COMPLETED BY PURCHASER IF (c) ABOVE IS CHECKED. 
  
 The undersigned represents and warrants that the transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and,
accordingly, the undersigned further certifies that (A) the transfer is not being made to a person in the United States and (1) at the time the buy order was originated, the transferee was outside the United States or such transferor and any Person
acting on its behalf reasonably believed and believes that the transferee was outside the United States or (2) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither such transferor nor
any 

  

 A-12 

 
Person acting on its behalf knows that the transaction was prearranged with a buyer in the United States; (B) no directed selling efforts have been made in
contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act; (C) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act; and (D) if the proposed
transfer is not being made prior to the expiration of the Restricted Period, the transfer is not being made to a U.S. Person. 
  
 Dated:                      
  
 NOTICE: To be executed by an executive officer 
  

 A-13 

 CONVERSION NOTICE 
  
 TO: CV THERAPEUTICS, INC. 
 3172 Porter
Drive 
 Palo Alto, California 94304 
 Attention: General Counsel

  
 The undersigned registered owner of this Security hereby
irrevocably exercises the option to convert this Security, or the portion hereof (which is $1,000 principal amount or an integral multiple thereof) below designated, into shares of Common Stock in accordance with the terms of the Indenture referred
to in this Security, and directs that the shares issuable and deliverable upon such conversion, together with any check in payment for fractional shares and any Securities representing any unconverted principal amount hereof, be issued and delivered
to the registered holder hereof unless a different name has been indicated below. If shares or any portion of this Security not converted is to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes
payable with respect thereto. Any amount required to be paid to the undersigned on account of interest (including Liquidated Damages, if any) accompanies this Security. 
  

					
	Dated:	  	 Your Name: 
	 	 
	 	  	 	 	(Print your name exactly as it appears on the face of this Security)
			
	 	  	 Your Signature:
	 	 
	 	  	 	 	(Sign exactly as your name appears on the face of this Security)
			
	 	  	 Signature Guarantee*:
	 	 
		
	 	  	 Social Security or other Taxpayer

	 	  	 Identification Number:
	 	 

  
 Principal amount to be converted (if
less than all): $                              

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  
 Fill in for registration of shares (if to be issued) and Securities (if to be delivered)
other than to and in the name of the registered holder: 
  

					
	 	  	 	  	 
	 	  	(Name)	  	 
			
	 	  	 	  	 
	 	  	(Street Address)	  	 
			
	 	  	 	  	 
	 	  	(City, State and Zip Code)	  	 

  

 A-14 

 NOTICE OF EXERCISE OF REPURCHASE RIGHT 
  
 TO: CV THERAPEUTICS, INC. 
 3172 Porter Drive 
 Palo Alto, California 94304 
 Attention: General Counsel 
  
 The undersigned registered owner of this Security hereby irrevocably acknowledges receipt of a notice from CV Therapeutics, Inc. (the “Company”) as to the occurrence of a Fundamental Change with respect to
the Company and requests and instructs the Company to repay the entire principal amount of this Security, or the portion thereof (which is $1,000 principal amount or an integral multiple thereof) below designated, in accordance with the terms of the
Indenture referred to in this Security, together with interest (including Liquidated Damages, if any) accrued and unpaid to, but excluding, such date, to the registered holder hereof, in cash. 
  

					
	Dated:	  	 Your Name: 
	 	 
	 	  	 	 	(Print your name exactly as it appears on the face of this Security)
			
	 	  	 Your Signature:
	 	 
	 	  	 	 	(Sign exactly as your name appears on the face of this Security)
			
	 	  	 Signature Guarantee*:
	 	 
		
	 	  	 Social Security or other Taxpayer

	 	  	 Identification Number:
	 	 

  
 Principal amount to be repaid (if less
than all): $                             

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 A-15 

 SCHEDULE OF EXCHANGES FOR PHYSICAL SECURITIES2 
  
 The following exchanges of a part of this Global Security for Physical
Securities have been made: 
  

									
	 Date of Exchange

	 	 Amount of
 decrease in
 Principal
 Amount
 of this Global
 Security

	 	 Amount of
 increase
 in Principal
 Amount of this
 Global Security

	  	 Principal Amount
 of this Global
 Security following
 such decrease (or
 increase)

	  	 Signature of
 authorized officer
 of Trustee

	2	This schedule should be included only if the Security is issued in global form. 

  

 A-16

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