Document:

Exhibit 10.121

    
      

    

    PROMISSORY
      NOTE

    Dated
      and
      Effective as of

    $120,000,000                                                                                                                                                                                                                                                                                                                                             
 
April
      3,
      2006

    

    Loan
      No.
      70-6-106-306

    

    

    FOR
      VALUE
      RECEIVED, the undersigned (collectively, “Borrower”)
      promise to pay to the order of THE
      PRUDENTIAL INSURANCE COMPANY OF AMERICA,
      a New
      Jersey corporation (“Lender,”
which
      shall also mean successors and assigns who become holders of this Note), at
      2200
      Ross Avenue, Suite 4900-E, Dallas, Texas 75201, the principal sum of One Hundred
      Twenty Million Dollars ($120,000,000) (“Loan”)
      together with interest on the unpaid balance thereof from and including the
      Funding Date until and including the date paid in full. Capitalized terms used
      herein without definition shall have the meanings ascribed to them in the
      Instrument (defined below). 

    

    1.  DEFINITIONS.

     

    (a)  “Allocated
      Loan Amount”
shall
      have the meaning set forth in Exhibit A
      attached
      hereto and by this reference made part hereof.

     

    (b)  “Balance”
shall
      mean the unpaid principal amount of the Loan which is outstanding and unpaid
      from time to time.

     

    (c)  “Business
      Day”
with
      respect to any date, shall mean any day other than a Saturday, Sunday, a legal
      holiday or other day on which commercial banks in the State in which the
      Mortgaged Property is located, or the State where payments made by Borrower
      are
      received, are authorized or required to close. All references in this Note
      to a
“day” or “date” shall be to a calendar day unless specifically referred as a
      Business Day.

     

    (d)  “Cash
      Trap Period”
shall
      have the meaning set forth in Section 26 below.

     

    (e)  “Daily
      Charge”
shall
      have the meaning set forth in Section 3(a) below.

     

    (f)  “Debt
      Service Coverage Ratio”
shall
      mean the ratio as reasonably determined by Lender obtained by dividing NOI
      by
      the TADS.

     

    (g)  “Default
      Rate”
shall
      mean a rate of interest per annum equal to the lesser of (i) the maximum rate
      allowed to be charged by Lender under applicable law, or (ii) the greater of
      (1)
      the sum of the Interest Rate plus five percent (5%), or (2) the sum of the
      Prime
      Rate plus five percent (5%).

     

    (h)  “Discount
      Rate”
is
      the
      rate which, when compounded monthly, is equivalent to the Treasury Rate, when
      compounded semi-annually.

     

    (i)  “Documents”
shall
      mean, collectively, the Documents as defined in the Instrument.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

     

    (j)  “Due
      Date”
shall
      mean each date that a payment of interest and/or principal is due and payable
      under this Note.

     

    (k)  “Event
      of Default”
shall
      have the meaning set forth in the Instrument.

     

    (l)  “Excess
      Amount”
shall
      have the meaning set forth in Section 6 below.

     

    (m)  “Exculpated
      Parties”
shall
      have the meaning set forth in Section 9 below.

     

    (n)  “Funding
      Date”
shall
      mean the date of the first disbursement of the Loan.

     

    (o)  “Guarantor”
shall
      mean collectively CNL Hospitality Partners, LP, a Delaware limited partnership
      and Hilton Hotels Corporation, a Delaware corporation.

     

    (p)  “Hotel
      Franchise Agreements”
shall
      have the meaning set forth in Section 9 below.

     

    (q)  “Individual
      Loan”
shall
      have the meaning set forth in Exhibit A attached hereto.

     

    (r)  “Individual
      Property”
shall
      have the meaning set forth in Exhibit A attached hereto.

     

    (s)  “Initial
      Interest Payment”
shall
      have the meaning set forth in Section 2(d) below.

     

    (t)  “Instrument”
shall
      mean collectively the Deeds of Trust and Mortgages of even date herewith between
      Borrower and Lender that are listed on Exhibit
      A
      attached
      hereto and by this reference made a part hereof.

     

    (u)  “Interest
      Only Period”
shall
      mean the period commencing on the Funding Date to April 5, 2006.

     

    (v)  “Interest
      Rate”
shall
      mean a fixed rate of interest per annum of five and four hundred seventy
      one-thousandths percent (5.470%)

     

    (w)  “Late
      Charge”
shall
      have the meaning set forth in Section 3(a) below.

     

    (x)  “Loan”
shall
      mean the loan evidenced by this Note.

     

    (y)  “Loan
      Principal”
shall
      have the meaning set forth in Section 27.

     

    (z)  “Loan
      to Value Ratio”
shall
      mean the ratio, as reasonably determined by Lender, of (i) the aggregate
      principal balance of all encumbrances against the Mortgaged Property to (ii)
      the
      fair market value of the Mortgaged Property as reasonably determined by
      Lender.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

     

    (aa)  “Low
      DSCR Period”
shall
      have the meaning set forth in Section 26 below.

     

    (bb)  “Management
      Agreements”
shall
      mean collectively, the Management Agreement dated September 27, 2001, Owner
      Agreement dated September 27, 2001 and Recognition Agreement dated April 3,
      2006
      respecting the PH Property; the Management Agreement dated September 27, 2001
      and Owner Agreement dated September 27, 2001 respecting the AH Property; the
      Management Agreement dated September 17, 2001, Owner Agreement dated September
      17, 2001 and Recognition Agreement dated April 3, 2006 respecting the CM
      Property; and the Management Agreement dated September 6, 2001, Owner Agreement
      dated September 6, 2001 and Recognition Agreement dated April 3, 2006 respecting
      the HMA Property. 

     

    (cc)  “Management
      SNDAs”
shall
      mean collectively, the Manager’s Consent, Subordination of Management Agreement,
      and Non-Disturbance Agreement dated of even date herewith respecting the PH
      Property; the Manager’s Consent, Subordination of Management Agreement, and
      Non-Disturbance Agreement dated of even date herewith respecting the AH
      Property; the Manager’s Consent, Subordination of Management Agreement, and
      Non-Disturbance Agreement dated of even date herewith respecting the CM
      Property; and the Manager’s Consent, Subordination of Management Agreement, and
      Non-Disturbance Agreement dated of even date herewith respecting the HMA
      Property.

     

    (dd)  “Maturity”
shall
      mean the Maturity Date or such earlier date that the Obligations are due and
      payable by acceleration by Lender as provided in the Documents.

     

    (ee)  “Maturity
      Date”
shall
      mean April 5, 2011. 

     

    (ff)  “Maximum
      Rate”
shall
      have the meaning set forth in Section 6 below.

     

    (gg)  “Monthly
      Payment Amount”
shall
      mean from and including the First Payment Date through the Maturity Date, the
      monthly amount due under this Note for principal payments and interest on the
      Balance hereof, at the Applicable Rate, accrued and unpaid under this
      Note.

     

    (hh)  “Mortgaged
      Property”
as
      used
      in this Note shall mean, collectively, the Property as defined in the
      Instrument, together with any real or personal property securing, in whole
      or in
      part, this Note and/or the Obligations, including, without limitation, all
      Lessee Collateral (as defined in the Lessee Security Agreements executed by
      the
      Affiliate Operating Lessee).

     

    (ii)  “NOI”
shall
      mean the gross annual income realized from operations of the Mortgaged Property
      for the applicable twelve (12) month period after subtracting all necessary
      and
      ordinary operating expenses (both fixed and variable) for that twelve (12)
      month
      period, including, without limitation, utilities, administrative, cleaning,
      landscaping, security, repairs, and maintenance, ground rent payments,
      management fees, franchise fees, such amounts as are required under the
      Management Agreements and Hotel Franchise Agreements for FF&E reserves, but
      not less than 4.0% of annual gross revenue, real estate and other taxes (on
      a
      fully-assessed basis), assessments and insurance, but excluding deduction for
      FF&E replacements, capital expenditures, federal, state and other income
      taxes, debt service expense, depreciation or amortization of capital
      expenditures, and other similar 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

     

    non-cash
      items. Gross income shall be based on the cash actually received for the
      preceding twelve (12) months, and ordinary operating expenses shall not be
      prepaid. Documentation of NOI and expenses shall be certified by appropriate
      officers of Borrower with detail satisfactory to Lender and shall be subject
      to
      the approval of Lender.

     

    (jj)  “Obligations”
shall
      have the meaning set forth in the Instrument.

     

    (kk)  “Operating
      Leases”
shall
      mean collectively, the Amended and Restated Lease Agreement respecting the
      PH
      Property dated April 3, 2006, entered into by PH Hotel Partners, LP, as
      Landlord, and Operating Lessee, as Tenant; the Amended and Restated Lease
      Agreement respecting the AH Property dated April 3, 2006, entered into by AH
      Hotel Partners, LP, as Landlord, and Operating Lessee, as Tenant; the Amended
      and Restated Lease Agreement respecting the HMA Property dated April 3, 2006,
      entered into by HMA Hotel Partners, LP, as Landlord, and Operating Lessee,
      as
      Tenant; and the Amended and Restated Lease Agreement respecting the CM Property
      dated April 3, 2006, entered into by CM Hotel Partners, LP, as Landlord, and
      Operating Lessee, as Tenant.

     

    (ll)  “Operating
      Lessee”
shall
      mean AH Tenant Corporation, a Delaware corporation.

     

    (mm)  “Person”
shall
      have the meaning set forth in the Instrument.

     

    (nn)  “Prepayment
      Amount”
shall
      mean the amount of the Balance prepaid on a Prepayment Date.

     

    (oo)  “Prepayment
      Date”
shall
      mean any date, prior to the Maturity Date, upon which all or any portion of
      the
      Balance is prepaid.

     

    (pp)  “Prepayment
      Premium”
shall
      mean the Prepayment Premium calculated in accordance with Section
      5.

     

    (qq)  “Present
      Value of the Loan”
shall
      be determined by Lender by discounting all scheduled payments of principal
      and
      interest remaining to maturity of the Loan, attributed to the amount being
      prepaid, at the Discount Rate. If prepayment occurs on a date other than a
      monthly Due Date, the actual number of days remaining from the Prepayment Date
      to the next monthly Due Date will be used to discount within this
      period.

     

    (rr)  “Prime
      Rate”
shall
      mean the prime rate published in the Wall Street Journal on the first Business
      Day after a default occurs under the Document and on the first Business Day
      of
      every calendar month thereafter.

     

    (ss)  “Principal
      Payment Amount”
shall
      have the meaning set forth in Section 15 below.

     

    (tt)  “Release”
shall
      have the meaning set forth in Section 15 below.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

                                    (uu)  “Release
      Price”
shall
      have the meaning set forth in Section 15 below.

     

    (vv)  “Released
      Property”
shall
      have the meaning set forth in Section 15 below.

     

    (ww)  “Replaced
      Property”
shall
      have the meaning set forth in Section 16 below.

     

    (xx)  “Security
      Deposit”
shall
      have the meaning set forth in Section 9 below.

     

    (yy)  “Stabilized
      DSCR Period”
shall
      have the meaning set forth in Section 26 below.

     

    (zz)  “Substitute
      Property”
shall
      have the meaning set forth in Section 16 below.

     

    (aaa)  “Substitution”
shall
      have the meaning set forth in Section 16 below.

     

    (bbb)  “TADS”
shall
      mean the aggregate debt service payments for any given calendar year on the
      Loan
      and on all other indebtedness secured, or to be secured, by any part of the
      Mortgaged Property.

     

    (ccc)  “Termination
      Fee”
shall
      have the meaning set forth in Section 9 below.

     

    (ddd)  “Treasury
      Rate”
shall
      mean the semi-annual yield on the Treasury Constant Maturity Series with
      maturity equal to the remaining weighted average life of the Loan, for the
      week
      prior to the Prepayment Date, as reported in Federal Reserve Statistical Release
      H.15 - Selected Interest Rates, conclusively determined by Lender on the
      Prepayment Date. The rate will be determined by linear interpolation between
      the
      yields reported in Release H.15, if necessary. (In the event Release H.15 is
      no
      longer published, Lender shall select a comparable publication to determine
      the
      Treasury Rate.)

     

    
      	2.  	
              COMPUTATION
                OF INTEREST; PAYMENT OF PRINCIPAL AND INTEREST.

            

    

     

    (a)  Computation
      of Interest.
      Except
      as otherwise provided herein, the outstanding Balance shall bear interest at
      the
      Interest Rate from the Funding Date through and including the date the Loan
      is
      paid in full. Interest on the Balance shall be computed hereunder on the basis
      of a three hundred sixty (360) day year based upon twelve (12) 30-day months
      for
      each full calendar month, except that interest due and payable for a period
      of
      less than a full calendar month shall be calculated by multiplying the actual
      number of days elapsed in such period by a daily rate based on said 360-day
      year.

     

    (b)  Payments.
      Principal and interest payments on the Balance shall be paid by Borrower in
      arrears in sixty (60) monthly installments of $734,756.64 commencing on
      May 5, 2006, and continuing on the fifth (5th)
      day of
      each succeeding month until the entire Balance, if not sooner paid, is due
      and
      payable in full on April 5, 2011. Following the Interest Only Period, the
      monthly payments of principal due hereon shall be calculated by Lender on the
      basis of a three hundred (300) month amortization schedule commencing April
      5,
      2006, and the Interest Rate.

     

    (c)  Balloon
      Payment.
      The
      amortization period used to calculate the monthly payment does not fully
      amortize the Balance of the Loan evidenced by this Note during the term of
      the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    (d)  Loan,
      and, therefore, in addition to the monthly payment of principal and interest,
      a
      balloon payment of the Balance will be due and payable at Maturity.

     

    (e)  Initial
      Interest.
      Interest calculated at the Interest Rate on the Balance from and including
      the
      Funding Date to and including April 4, 2006, shall be due and payable in advance
      on the Funding Date (“Initial Interest Payment”).

     

    (f)  Maturity.
      The
      entire Obligations shall be due and payable on the Maturity Date. 

     

    3.  LATE
      PAYMENT AND DEFAULT INTEREST.

     

    (a)  Late
      Charge.
      If any
      payment due under the Documents is not fully paid by its Due Date, a charge
      of
      $600.00 per day (the “Daily
      Charge”)
      shall
      be assessed for each day that elapses until payment in full is made (including
      the date payment is made); provided, however, that if any such payments,
      together with all accrued Daily Charges, are not fully paid by the fourteenth
      (14th)
      day
      following their Due Date, a late charge equal to the lesser of (i) four percent
      (4%) of such payments or (ii) the maximum amount allowed by law (the
“Late
      Charge”)
      shall
      be assessed and be immediately due and payable. The Late Charge shall be payable
      in lieu of Daily Charges that shall have accrued. The Late Charge may be
      assessed only once on each overdue payment. These charges shall be paid to
      defray the expenses incurred by Lender in handling and processing such
      delinquent payment(s) and to compensate Lender for the loss of the use of such
      funds. The Daily Charge and Late Charge shall be secured by the Documents.
      The
      imposition of the Daily Charge, Late Charge, and/or requirement that interest
      be
      paid at the Default Rate shall not be construed in any way to (i) excuse
      Borrower from its obligation to make each payment under this Note promptly
      when
      due or (ii) preclude Lender from exercising any rights or remedies available
      under the Documents upon an Event of Default.

     

    (b)  Acceleration.
      Upon an
      Event of Default, including, without limitation, a breach of Section 5.01 of
      the
      Instrument, Lender may declare the Balance, unpaid accrued interest, the
      Prepayment Premium and all other Obligations immediately due and payable in
      full, without further presentment, demand, protest or notice of any
      kind.

     

    (c)  Default
      Rate.
      Upon an
      Event of Default or at Maturity, whether by acceleration (due to a voluntary
      or
      involuntary default) or otherwise, the entire Obligations (excluding accrued
      but
      unpaid interest if prohibited by law) shall bear interest at the Default Rate.
      

     

    4.  APPLICATION
      OF PAYMENTS.
      Before
      an Event of Default, all payments received under this Note shall be applied
      in
      the following order: (a) to unpaid Daily Charges, Late Charges and costs of
      collection; (b) to any Prepayment Premium due; (c) to interest on the Balance;
      and (d) then to the Balance. After an Event of Default, all payments shall
      be
      applied in any order determined by Lender in its sole discretion. 

     

    5.  PREPAYMENT.
      Subject
      to payment of the premium referred to below and all accrued interest and other
      sums due under the Loan, if any, Borrower shall have the right to prepay all
      or
      part of the outstanding Balance on any date, upon giving not less than thirty
      (30) days prior written notice to Lender of its intention to prepay. Borrower
      shall have the right to revoke a notice of prepayment given to Lender, which
      right shall not be exercisable by Borrower more than two (2) times during the
      term of the Loan.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
If
        the
        Loan is prepaid for any reason, whether voluntarily or involuntarily, including
        any prepayment after acceleration by Lender upon a default by Borrower under
        the
        Documents, but excluding any prepayment from casualty or condemnation proceeds
        in accordance with the Documents, Borrower shall pay a prepayment premium
        (the
“Prepayment
        Premium”)
        equal
        to the greater of:

    

    
       

    

    
      	 	
              (1)

            	
              the
                product of (A) 1% of the principal amount of the Balance being prepaid
                multiplied by (B) the quotient of (x) the number of full months remaining
                to the Maturity Date as of the Prepayment Date divided by (y) the
                number
                of full months comprising the term of the Loan;
                or

            

    

    

    
      	 	
              (2)

            	
              an
                amount equal to the Present Value of the Loan less the sum of the
                Prepayment Amount being prepaid and the unpaid accrued interest on
                the
                Loan, if any, calculated as of the Prepayment
                Date.

            

    

     

    Lender
      shall notify Borrower of the amount (to be determined as of the Prepayment
      Date)
      and basis of determination of the Prepayment Premium. On the Prepayment Date,
      Borrower shall pay to Lender the Prepayment Premium together with the Prepayment
      Amount being prepaid and all accrued interest and other sums due under the
      Loan.
      Lender shall not be obligated to accept any prepayment of the Balance unless
      such prepayment is accompanied by the Prepayment Premium and all accrued
      interest and other sums due under the Loan. Borrower agrees that Lender shall
      not be obligated actually to reinvest the amount prepaid in any treasury
      obligations as a condition precedent to receiving the Prepayment Premium.
      Notwithstanding the foregoing, no Prepayment Premium will be due if the Loan
      is
      prepaid during the last ninety (90) days of the Loan term. 

     

    Borrower
      acknowledges that (i) the Prepayment Premium represents the reasonable estimate
      of Lender and Borrower of a fair average compensation for the loss that may
      be
      sustained by Lender due to the payment of any Prepayment Amount; and (ii) the
      Prepayment Premium shall be paid without prejudice to the right of Lender to
      collect any other amounts provided to be paid hereunder or under the other
      Documents.

     

    BORROWER
      HEREBY EXPRESSLY WAIVES ANY RIGHT IT MAY HAVE TO PREPAY THIS NOTE, IN WHOLE
      OR
      IN PART, WITHOUT PAYMENT OF THE PREPAYMENT PREMIUM, UPON ACCELERATION OF THE
      MATURITY DATE OF THIS NOTE, AND AGREES THAT IF FOR ANY REASON, A PREPAYMENT
      OF
      ANY OR ALL OF THIS NOTE IS MADE, WHETHER VOLUNTARILY, INVOLUNTARILY (BUT
      EXCLUDING ANY PREPAYMENT FROM CASUALTY OR CONDEMNATION PROCEEDS IN ACCORDANCE
      WITH THE DOCUMENTS) OR UPON OR FOLLOWING ANY ACCELERATION OF THE MATURITY DATE
      OF THIS NOTE BY HOLDER, THEN MAKER SHALL PAY THE PREPAYMENT PREMIUM CALCULATED
      PURSUANT TO THIS SECTION 5. BY INITIALING THIS PROVISION IN THE SPACE
      PROVIDED BELOW, BORROWER HEREBY DECLARES THAT LENDER’S AGREEMENT TO MAKE THE
      LOAN AT THE INTEREST RATE AND FOR THE TERM SET FORTH IN THIS NOTE CONSTITUTES
      ADEQUATE CONSIDERATION, GIVEN INDIVIDUAL WEIGHT BY BORROWER, FOR THIS WAIVER
      AND
      AGREEMENT.

    

    PH
      BORROWER’S INITIAL: ____________________

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    

    AH
      BORROWER’S INITIAL: ____________________

    HMA
      BORROWER’S INITIAL: ____________________

    

    CM
      BORROWER’S INITIAL: ____________________

    

    6.  NO
      USURY.
      Under
      no circumstances shall the aggregate amount paid or to be paid as interest
      under
      this Note exceed the highest lawful rate permitted under applicable usury law
      (“Maximum
      Rate”).
      If
      under any circumstances the aggregate amounts paid on this Note shall include
      interest payments which would exceed the Maximum Rate, Borrower stipulates
      that
      payment and collection of interest in excess of the Maximum Rate (“Excess
      Amount”)
      shall
      be deemed the result of a mistake by both Borrower and Lender and Lender shall
      promptly credit the Excess Amount against the Balance
      or
      refund to Borrower any portion of the Excess Amount which cannot be so
      credited.

     

    7.  SECURITY
      AND DOCUMENTS INCORPORATED.
      This
      Note is the Note referred to in and secured by, inter alia,
      the
      Instrument. Borrower shall observe and perform all of the terms and conditions
      in the Documents. The Documents are incorporated into this Note as if fully
      set
      forth in this Note. 

     

    8.  TREATMENT
      OF PAYMENTS.
      All
      payments under this Note shall be made, without offset or deduction, (a) in
      lawful money of the United States of America at the office of Lender or at
      the
      place (and in the manner) Lender may specify by written notice to Borrower,
      (b)
      in immediately available federal funds, and (c) if received by Lender prior
      to
      2:00 p.m. local time at such place, shall be credited on that day or else,
      at
      Lender’s option, shall be credited on the next Business Day. Initially (unless
      waived by Lender), and until Lender shall direct Borrower otherwise, Borrower
      shall make all payments due under this Note in the manner set forth in Section
      3.13 of the Instrument. If any Due Date falls on a day which is not a Business
      Day, then the Due Date shall be deemed to have fallen on the next succeeding
      Business Day. 

     

    9.  LIMITED
      RECOURSE LIABILITY.
      Except
      to the extent set forth in Paragraph 9 and Paragraph 10 of this Note, none
      of
      Borrower or any general or limited partners of Borrower (collectively, the
      “Exculpated
      Parties”)
      shall
      have personal liability for the Obligations. Notwithstanding the preceding
      sentence, Lender may bring a foreclosure action or other appropriate action
      to
      enforce the Documents or realize upon and protect the Mortgaged Property
      (including, without limitation, naming the Exculpated Parties in the actions)
      and
      in
      addition THE
      EXCULPATED PARTIES AND GUARANTOR (pursuant to a separate guaranty agreement)
      SHALL HAVE PERSONAL LIABILITY FOR:

     

    (a)  any
      indemnities and guaranties set forth in the Documents (including, the
      indemnities in the Documents respecting Executive Order 13224-Blocking Property
      and Prohibiting Transactions with Persons who Commit, Threaten to Commit, or
      Support Terrorism, as amended, hazardous substances, and ERISA;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

     

    (b)  except
      only to the extent that Borrower is prevented from accessing operating cash
      to
      pay taxes and assessments as a result of the operation of Lender’s cash
      management or control of the Mortgaged Property by a receiver, any assessments
      and taxes (accrued and/or payable) with respect to the Mortgaged Property in
      excess of the actual amount of reserves specifically held by Lender
      therefor;

     

    (c)  any
      security deposits, prepaid rents, or prepaid expenses paid by tenants or guests
      that are (i) not turned over to Lender upon foreclosure, sale (pursuant to
      power
      of sale), or conveyance in lieu thereof, or (ii) not turned over to a receiver
      or trustee for the Mortgaged Property after appointment, or (iii) not applied
      in
      accordance with the applicable Management Agreement, the applicable Lease
      (defined in the Instrument), or otherwise in accordance with Lender’s cash
      management;

     

    (d)  any
      insurance proceeds paid by insurers or condemnation awards issued that are
      not
      turned over to Lender or used in compliance with the Documents;

     

    (e)  any
      Affiliate Operating Lease or other Major Lease is entered, terminated or
      materially modified without Lender's prior written consent (and Lender's consent
      was required under the Documents);

     

    (f)  waste
      of
      the Mortgaged Property;

     

    (g)  any
      rents
      or other income from the Mortgaged Property received by any Exculpated Party
      or
      any tenant under an Operating Lease after a default under the Documents and
      not
      otherwise applied to the indebtedness under the Note, or to the current (not
      deferred or capital) operating expenses of the Mortgaged Property in accordance
      with the Management Agreements and Manager SNDAs (including cash management
      provisions required by Lender); PROVIDED, HOWEVER, THAT THE EXCULPATED PARTIES
      SHALL HAVE PERSONAL LIABILITY for amounts paid as expenses to a person or entity
      related to or affiliated with any Exculpated Party except for (A) reasonable
      salaries for on-site employees, (B) a reasonable allocation of the salaries
      of
      off-site employees for accounting and management, and (C) fees and
      reimbursements payable to Managers under the Management Agreements relating
      to
      the Mortgaged Property;

     

    (h)  Borrower’s
      failure to maintain any letter of credit, if any, required under the Documents
      or otherwise in connection with the Loan; 

     

    (i)  any
      security deposit (a “Security
      Deposit”)
      cashed
      or applied, or any termination fee, cancellation fee or any other fee
      (collectively, a “Termination
      Fee”)
      paid
      (x) in connection with a Lease (defined
      in the Instrument) termination,
      cancellation or expiration within six (6) months prior to or after a default
      under the Documents, (y) which is greater than one month’s base rent for the
      Lease to which the Security Deposit and/or Termination Fee applies, and (z)
      which is not paid to Lender (or an escrow agent selected by Lender) to be
      disbursed for the payment of Lender approved (1) tenant improvements, and/or
      (2)
      market leasing commissions, and/or (3) or otherwise applied in accordance with
      the Management Agreements and Manager SNDAs (including cash management
      provisions required by Lender);

     

    (j)  following
      a default under the Documents, all attorneys’ fees, including allocated costs of
      Lender’s staff attorneys, and other expenses incurred by Lender in enforcing the
      Documents if

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Borrower
      contests, delays, or otherwise hinders or opposes (including, without
      limitation, the filing of a bankruptcy) any of Lender’s enforcement actions;
      provided, however, that if in such action Borrower successfully proves that
      a
      default under the Documents did not occur, Borrower shall not be required to
      reimburse Lender for such attorneys’ fees, allocated costs and other
      expenses;

     

    (k)  except
      only to the extent that Borrower is prevented from accessing operating cash
      to
      pay such fees, costs, expenses, penalties and other sums as a result of the
      operation of Lender’s cash management or control of the Mortgaged Property by a
      receiver, all fees, costs, expenses, penalties and other sums (accrued and/or
      payable) relating to any hotel franchise agreements, whether evidenced in a
      separate franchise agreement or as part of a Management Agreement affecting
      the
      Mortgaged Property and any related software and/or hardware licensing,
      communications and technical support agreements (collectively, "Hotel
      Franchise Agreements");

     

    (l)  all
      fees,
      costs, expenses and other sums payable in connection with assuming Borrower's
      rights and interest under any Hotel Franchise Agreements upon foreclosure,
      sale
      (pursuant to power of sale), or conveyance in lieu thereof;

     

    (m)  all
      fees,
      costs, expenses and other sums payable on account of any voluntary termination
      of any Hotel Franchise Agreements by Borrower or any of the Exculpated Parties
      without Lender's prior written consent, as required under the Documents;

     

    (n)  all
      fees,
      costs, expenses and other sums payable in connection with reinstating any Hotel
      Franchise Agreements following a voluntary termination of the same by Borrower
      or any of the Exculpated Parties without Lender's prior written consent, as
      required under the Documents, upon foreclosure, sale (pursuant to power of
      sale), or conveyance in lieu thereof; and

     

    (o)  any
      security or other deposits for conventions, banquets or catering, or the booking
      of guest rooms (i) not turned over to Lender upon foreclosure, sale (pursuant
      to
      power of sale), or conveyance in lieu thereof, or (ii) not turned over to a
      receiver or trustee for the Mortgaged Property after his/her appointment, or
      (iii) not applied in accordance with the applicable Management Agreement, the
      applicable booking agreement/reservation, or otherwise in accordance with
      Lender’s cash management.

     

    (p)  fees,
      costs, expenses and other sums incurred by Lender on account of any material
      negligent misrepresentation by any of the Exculpated Parties in connection
      with
      the Mortgaged Property, the Documents, the Application, or any other aspect
      of
      the Loan; and

     

    (q)  if
      the
      Mortgaged Property or any part thereof shall become an asset in an involuntary
      bankruptcy or insolvency proceeding which is not dismissed within ninety (90)
      days of filing, any fees, costs, expenses and other sums incurred by Lender
      as a
      result of such filing; provided, however, that this subsection (q) shall not
      apply if an involuntary bankruptcy is filed by Lender or due to Lender not
      allowing payment of normal operating expense payables for the Mortgaged Property
      from otherwise available Mortgaged Property gross revenues.

     

    10.  FULL
      RECOURSE LIABILITY.
      Notwithstanding the provisions of Paragraph 9 of this Note, the EXCULPATED
      PARTIES SHALL HAVE PERSONAL LIABILITY
      for the
      Obligations if:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

     

    (a)  there
      shall be any breach or violation of the Due on Sale or Encumbrance sections
      of
      any Instrument; or

     

    (b)  there
      shall be any fraud or intentional misrepresentation by any of the Exculpated
      Parties in connection with the Mortgaged Property, the Documents, the Loan
      application executed by Borrower in connection with the Loan, or any other
      aspect of the Loan; or

     

    (c)  the
      Mortgaged Property or any part thereof shall become an asset in a voluntary
      bankruptcy or insolvency proceeding which is not dismissed within ninety (90)
      days of filing.

     

    Notwithstanding
      the foregoing, the EXCULPATED
      PARTIES SHALL HAVE PERSONAL LIABILITY
      for the
      applicable Allocated Loan Amount respecting the Individual Property located
      in
      California and all obligations set forth in the Documents respecting that
      Individual Property if, pursuant to the provisions of Section 726.5 of the
      California Code of Civil Procedure and related sections, that Individual
      Property is determined to be “environmentally impaired” and Lender, in its sole
      discretion, elects to waive its lien with respect to that Individual Property
      only and, in so doing, to exercise the all rights and remedies permitted by
      law
      accorded to a creditor unsecured by California real property.

     

    11.  JOINT
      AND SEVERAL LIABILITY.
      This
      Note shall be the joint and several obligation of all makers, endorsers,
      guarantors and sureties, and shall be binding upon them and their respective
      successors and assigns and shall inure to the benefit of Lender and its
      successors and assigns. 

     

    12.  JURISDICTION.
      WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDINGS ARISING OUT OF OR RELATING
      TO
      THE LOAN, THE DOCUMENTS, THE MORTGAGED PROPERTY OR THE RELATIONSHIP OF LENDER
      AND BORROWER HEREUNDER (“PROCEEDINGS”) EACH PARTY IRREVOCABLY (A) SUBMITS
      TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF FLORIDA AND THE
      UNITED STATES DISTRICT COURTS LOCATED IN THE STATE OF FLORIDA, (B) AGREES THAT
      THE EXCLUSIVE VENUE FOR JUDICIAL
      REFERENCE PROCEEDINGS PURSUANT TO SECTION 13(b)
      BELOW SHALL BE THE COUNTY OF ORANGE FLORIDA,
      AND (C) WAIVES ANY OBJECTION WHICH IT MAY HAVE AT ANY TIME TO THE LAYING OF
      VENUE OF ANY PROCEEDINGS BROUGHT IN ANY SUCH COURT, WAIVES ANY CLAIM THAT SUCH
      PROCEEDINGS HAVE BEEN BROUGHT IN AN INCONVENIENT FORUM AND FURTHER WAIVES THE
      RIGHT TO OBJECT, WITH RESPECT TO SUCH PROCEEDINGS, THAT SUCH COURT DOES NOT
      HAVE
      JURISDICTION OVER SUCH PARTY. THE PROVISIONS OF THIS SECTION SHALL SURVIVE
      THE
      FUNDING DATE, FULL REPAYMENT OR ANY EARLIER TERMINATION, OF THE DOCUMENTS OR
      ANY
      DOCUMENT.

     

    13.  WAIVER
      OF JURY TRIAL.
      TO THE FULLEST EXTENT NOT PROHIBITED BY LAW, EACH BORROWER, AND LENDER, BY
      LENDER’S ACCEPTANCE HEREOF, HEREBY AGREES TO, AND DOES, WAIVE ITS RESPECTIVE
      RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
      OUT
      OF THE LOAN, THIS NOTE, ANY DOCUMENT OR ANY OTHER DOCUMENT OR
      INSTRUMENT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    BETWEEN
      THE PARTIES RELATING TO THE LOAN, THE DOCUMENTS, THE MORTGAGED PROPERTY OR
      ANY
      DEALINGS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF ANY OF THE
      DOCUMENTS. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY
      AND ALL DISPUTES (EACH A “DISPUTE,” AND COLLECTIVELY, ANY OR ALL, THE
“DISPUTES”) OF ANY KIND WHATSOEVER THAT MAY BE FILED IN ANY COURT AND THAT
      RELATE TO THE SUBJECT MATTER OF THE LOAN, THIS NOTE, ANY DOCUMENT OR ANY OTHER
      DOCUMENT OR INSTRUMENT BETWEEN THE PARTIES RELATING TO THE LOAN, THIS NOTE,
      THE
      DOCUMENTS, THE MORTGAGED PROPERTY OR ANY DEALINGS BETWEEN THE PARTIES RELATING
      TO THE SUBJECT MATTER OF ANY OF THE DOCUMENTS, INCLUDING, WITHOUT LIMITATION,
      CONTRACT CLAIMS, TORT CLAIMS, ANTITRUST CLAIMS, BREACH OF DUTY CLAIMS, AND
      ALL
      OTHER COMMON-LAW OR STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS
      WAIVER IS A MATERIAL INDUCEMENT TO ENTERING INTO THIS NOTE AND ALL OTHER
      AGREEMENTS AND INSTRUMENTS PROVIDED FOR HEREIN, AND THAT EACH WILL CONTINUE
      TO
      BE BOUND BY AND RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH
      PARTY
      HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH
      LEGAL COUNSEL OF ITS OWN CHOOSING, OR HAS HAD AN OPPORTUNITY TO DO SO, AND
      THAT
      IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS HAVING HAD THE
      OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING
      THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL
      APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS, OR MODIFICATIONS
      TO
      THIS AGREEMENT OR ANY OTHER DOCUMENT OR DOCUMENT ENTERED INTO BETWEEN THE
      PARTIES IN CONNECTION WITH THIS AGREEMENT OR ANY DOCUMENT. IN THE EVENT OF
      LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY
      THE
      COURT WITHOUT A JURY.

     

    PH
      BORROWER’S INITIAL: __________

     

    AH
      BORROWER’S INITIAL: __________

     

    HMA
      BORROWER’S INITIAL: __________

     

    CM
      BORROWER’S INITIAL: __________

     

    14.  ONE
      TIME TRANSFER.
      Commencing twelve (12) months after the Funding Date and notwithstanding Section
      5.01 of the Instrument, and so long as there is no default under the Documents
      (or event which with the passage of time or the giving of notice or both would
      be a default), Lender agrees, upon thirty days prior written request, to consent
      to the original Borrower’s one transfer of the entire Mortgaged Property, or
      100% of the direct equity in Borrowers, or 100% of any entity that indirectly
      owns 100% of the equity in Borrowers, if: 

     

    (a)  the
      proposed transferee of the Mortgaged Property (or equity interests in Borrower,
      as applicable) is a person which, in the judgment of Lender, has financial
      capability and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    creditworthiness,
      reputation and experience in the ownership, operation, management, and leasing
      of similar properties, equal to or greater than Borrower and the Borrower’s
      principals, or otherwise satisfactory to Lender, sufficient to perform
      Borrower’s obligations under the Documents, and, it being understood, without
      limiting the foregoing, that the proposed transferee shall not be acceptable
      if
      (A) upon assumption of the Loan, such transferee’s, its affiliates’, or related
      entities’ credit obligations shall exceed Lender’s individual or related
      borrower limits as established by Lender from time to time in its sole
      discretion or (B) the proposed transferee is related to Lender or advised by
      Lender or any affiliate of Lender;

     

    (b)  at
      the
      time of transfer the Loan to Value Ratio does not exceed 55%;

     

    (c)  Borrower
      pays Lender a non-refundable servicing fee of $15,000 at the time of the request
      and an additional fee equal to 1/2 of 1% of the outstanding Balance at the
      time
      of the transfer less the amount of the non-refundable servicing fee paid to
      Lender;

     

    (d)  at
      Lender's option, Lender's title policy is endorsed to verify the first priority
      of the Documents at Borrower's expense; 

     

    (e)  the
      Debt
      Service Coverage Ratio is at least 1.50 to 1.00 for the preceding twelve (12)
      month period and Lender receives satisfactory evidence that this Debt Service
      Coverage Ratio is projected to be maintained for the next succeeding twelve
      (12)
      months;

     

    (f)  the
      transferee expressly assumes all obligations under the Documents and executes
      any documents reasonably required by Lender, and all of these documents are
      satisfactory in form and substance to Lender, and a guarantor, acceptable to
      Lender, executes a guaranty and indemnities (pursuant to documents satisfactory
      in form and substance to Lender) with respect to all of the obligations under
      Sections 9 and 10 of this Note and Sections 3.11, 3.12, 8.04 and of the
      Instrument 8.05 (and upon the execution and delivery of all assumptions,
      indemnities, replacement guaranties and certificates required by Lender,
      Guarantor will be released of obligations relating to events occurring
      subsequent to the date of transfer);

     

    (g)  Lender
      reasonably approves the form and content of all transfer documents, and Lender
      is furnished with a certified copy of the recorded transfer
      documents;

     

    (h)  the
      transferee complies with and delivers the ERISA certification and
      indemnification agreement described in the Instrument; 

     

    (i)  Borrower
      shall provide a copy of (A) the purchase and sale agreement (and all amendments
      thereto) for the Mortgaged Property at the time of the transfer request or,
      if
      not then in effect, within five (5) days of execution, (B) all amendments to
      the
      purchase and sale agreement after delivery of said agreement to Lender, and
      (C)
      a fully executed closing statement upon closing of the transfer; 

     

    (j)  The
      transferee shall sign and deliver Lender’s then current credit certification at
      the time of the request, which shall include a representation that the
      transferee and all persons or entities holding any legal or beneficial interest
      whatsoever in the transferee are not included in, owned by, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    controlled
      by, acting for or on behalf of, providing assistance, support, sponsorship,
      or
      services of any kind to, or otherwise associated with any of the persons or
      entities referred to or described in Executive Order 13224 - Blocking Property
      and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or
      Support Terrorism, as amended; and

     

    (k)  Borrower
      or the transferee pays all reasonable fees, costs, and expenses incurred by
      Lender in connection with the proposed transfer, including, without limitation,
      all legal (for Lender’s outside or special counsel), accounting, title
      insurance, documentary stamps taxes, intangible taxes, mortgage taxes, recording
      fees, and appraisal fees, whether or not the transfer is actually consummated.
      

     

    (l)  The
      transfer is approved by all applicable franchisors under Hotel Franchise
      Agreements.

     

    This
      Section 14 shall be personal to the original Borrower under the Loan, and no
      transferee shall have any rights under this Section 14.

     

    15.  PARTIAL
      RELEASE.
      Upon
      not less than forty-five (45) days prior written notice from Borrower, Lender
      would permit the release (a “Release”)
      of
      either (i) any single Individual Property, or (ii) the following two Individual
      Properties together: Embassy Suites Portland, Portland, OR and Hilton Suites
      Auburn Hills, Auburn Hills, MI, from the lien of the Documents (as applicable,
      “Released Property”), upon the satisfaction (as determined by Lender in its sole
      discretion) of all of the terms and conditions set forth below. Borrower may
      exercise the foregoing Release at one time by releasing the two Released
      Properties identified above in (ii), or on two occasions by releasing one
      Released Property on each Release occasion.

     

    (a)  At
      the
      time of the request and the time of the proposed Release, there shall exist
      no
      Cash Trap Period, or monetary default, or other uncured Event of Default under
      the Documents;

     

    (b)  Any
      such
      request may be made no sooner than twelve (12) months after the Funding Date,
      and such written request must be received no later than twelve (12) months
      prior
      to the Maturity Date;

     

    (c)  Borrower
      shall have paid to Lender the “Release
      Price”
equal
      to (i) 115% of the outstanding principal balance of the Allocated Loan Amount
      of
      the Released Property (such amount shall herein be called the “Principal
      Payment Amount”)
      plus
      (ii) the applicable Prepayment Premium (based on the Principal Payment Amount)
      plus (iii) all accrued interest with respect to Individual Loan applicable
      to
      the Released Property and all accrued and unpaid charges with respect to the
      Loan;

     

    (d)  The
      Principal Payment Amount shall be applied to pay in full the principal balance
      due with respect to the Individual Loan applicable to the Released Property,
      and
      Lender, in its discretion, shall apply, subject to (e) above, the portion of
      the
      Principal Payment Amount which is in excess of the then outstanding principal
      balance of the Individual Loan applicable to the Released Property to one of
      more of the other Individual Loans applicable to the other Individual
      Properties; 

     

    (e)  Lender
      shall have determined that following the Release, the Debt Service Coverage
      Ratio calculated with respect to the remaining Mortgaged Property (excluding
      the
      Released

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Property)
      shall be at least equal to the greater of (i) 1.50 to 1.00 or (ii) the Debt
      Service Coverage Ratio for the Loan immediately prior to the proposed Release
      (including the Released Property). In the event the Debt Service Coverage Ratio
      of the remaining Mortgaged Property (excluding the Released Property) is less
      than the required level, Lender shall first reallocate the excess Principal
      Payment Amount to reduce the deficiency if sufficient but then, if not, Borrower
      shall have the right, subject to payment of the applicable Prepayment Premium
      calculated in accordance with the provisions set forth in Section 5 of this
      Note, to pay Lender the amount necessary to increase the Debt Service Coverage
      Ratio of the remaining Mortgaged Property (excluding the Released Property)
      to
      the required level;

     

    (f)  Lender
      shall have determined that following the Release, the Loan to Value Ratio
      calculated with respect to the remaining Mortgaged Property (excluding the
      Released Property), shall not exceed the lesser of (i) fifty-five percent (55%)
      or (ii) the Loan to Value Ratio of the Mortgaged Property (including the
      Released Property) immediately prior to the proposed Release. In the event
      the
      Loan to Value Ratio of the remaining Mortgaged Property (excluding the Released
      Property) exceeds the required level, Lender shall first reallocate the excess
      Principal Payment Amount to reduce the deficiency if sufficient but then, if
      not, Borrower shall have the right, subject to payment of the Prepayment Premium
      calculated in accordance with the provisions set forth in Section 5 of this
      Note, to pay Lender the amount necessary to reduce the Loan to Value Ratio
      of
      the remaining Mortgaged Property (excluding the Released Property) to the
      required level;

     

    (g)  At
      the
      time the Borrower makes its written request to Lender for a Release, Borrower
      shall pay to Lender a non-refundable administrative fee of $15,000. Such
      non-refundable administrative fee shall be deemed earned by Lender upon its
      receipt by Lender and shall not be applied to the Principal Payment Amount,
      the
      Prepayment Premium, or any other amount due under this provision;

     

    (h)  Whether
      or not the Release actually closes, Borrower shall pay to Lender all escrow,
      closing and recording charges and taxes including, but not limited to, the
      cost
      of preparing and delivering releases, any re-conveyance documentation and
      modifications of the Documents, including legal fees and costs, the cost of
      any
      title insurance endorsements that Lender may require, any out-of-pocket expenses
      incurred by the Lender in connection with the Release, and any sums then due
      and
      payable under the Documents; and 

     

    (i)  Such
      other terms and conditions as Lender shall reasonably require.

     

    16.  PROPERTY
      SUBSTITUTIONS.
      Upon
      not less than sixty (60) days prior written notice from Borrower, Lender shall
      permit Borrower to substitute (“Substitution”)
      new
      properties (“Substitute
      Property”)
      for
      either (i) any single Individual Property, or (ii) the following two Individual
      Properties together: Embassy Suites Portland, Portland, OR and Hilton Suites
      Auburn Hills, Auburn Hills, MI (as applicable, “Replaced
      Property”).
      Borrower may exercise the foregoing Substitution at one time by substituting
      the
      two Replaced Properties identified above in (ii), or on two occasions by
      substituting one Replaced Property on each Substitution occasion. Borrowers
      may
      exercise the foregoing Substitution upon the satisfaction (as determined by
      Lender in its sole discretion) of all of the following terms and conditions:
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

     

    (a)  At
      the
      time of the request and the time of the proposed Substitution, there shall
      exist
      no Cash Trap Period, or monetary default, or other uncured Event of Default
      under the Documents;

     

    (b)  Any
      such
      request may be made no sooner than twelve (12) months after the Funding Date,
      and such written request must be received no later than twelve (12) months
      prior
      to the Maturity Date;

     

    (c)  Substitute
      Property must be (i) owned, directly or indirectly, in fee and located in the
      U.S., and (ii) otherwise acceptable to Lender in its reasonable
      discretion;

     

    (d)  Substitute
      Property meets Lender’s environmental, title/land use, engineering and other
      underwriting standards, which shall be consistent with the underwriting
      standards then employed by Lender;

     

    (e)  The
      appraised market value and net operating income generated by the Substitute
      Property are greater than or equal to that of the Replaced Property at the
      time
      of substitution, as reasonably determined by Lender;

     

    (f)  Lender
      shall have determined that following the Substitution, the Debt Service Coverage
      Ratio calculated with respect to the remaining Mortgaged Property (including
      the
      Substitute Property but not the Replaced Property) shall be at least equal
      to
      1.50 to 1.00. In the event the Debt Service Coverage Ratio of the remaining
      Mortgaged Property (calculated including the Substitute Property but not the
      Replaced Property) is less than the required level, Borrower shall have the
      right, subject to payment of the applicable Prepayment Premium calculated in
      accordance with the provisions set forth in Section 5 of this Note, to pay
      Lender the amount necessary to increase the Debt Service Coverage Ratio of
      the
      remaining Mortgaged Property (excluding the Replaced Property but including
      the
      Substitute Property) to the required level;

     

    (g)  Lender
      shall have determined that following the Substitution, the Loan to Value Ratio
      calculated with respect to the remaining Mortgaged Property (including the
      Substitute Property but not the Replaced Property), shall not exceed fifty-five
      percent (55%). In the event the Loan to Value Ratio of the remaining Mortgaged
      Property (calculated including the Substitute Property but not the Replaced
      Property) exceeds the required level, Borrower shall have the right, subject
      to
      payment of the Prepayment Premium calculated in accordance with the provisions
      set forth in Section 5 of this Note, to pay Lender the amount necessary to
      reduce the Loan to Value Ratio of the remaining Mortgaged Property (excluding
      the Released Property but including the Substitute Property) to the required
      level;

     

    (h)  At
      the
      time the Borrower makes its written request to Lender for a Substitution,
      Borrower shall pay to Lender a non-refundable administrative fee equal to the
      greater of 1⁄2 of 1% of the allocable loan amount of the Substitute Property or
      $50,000. Such non-refundable administrative fee shall be deemed earned by Lender
      upon its receipt by Lender and shall not be applied to the Principal Payment
      Amount, the Prepayment Premium, or any other amount due under this
      provision;

     

    (i)  Lender
      receives a first mortgage lien on and security interests (which shall be
      cross-collateralized with the liens on other properties securing the Loan for
      which substitution is sought) relating to such Substitute Property and receives
      such title insurance as Lender may reasonably require; 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

     

    (j)  Whether
      or not the Substitution actually closes, Borrower shall pay to Lender all
      escrow, closing and recording charges and taxes including, but not limited
      to,
      the cost of preparing and delivering substitutions, any re-conveyance
      documentation and modifications of the Documents, including legal fees and
      costs, an MAI Appraisal, the cost of any title insurance endorsements that
      Lender may require, any expenses incurred by the Lender in connection with
      the
      Substitutions, and any sums then due and payable under the Documents;
      and

     

    (k)  Such
      other terms and conditions as Lender shall reasonably require.

     

    17.  GOVERNING
      LAW.
      This
      Note shall be deemed entered into in the State of Florida and shall be governed
      by and construed in accordance with the laws of the State of
      Florida.

     

    18.  TRANSFERS
      BY LENDER.
      This
      Note or any interest in this Note and the Documents may be hypothecated,
      transferred or assigned by Lender without the prior consent of
      Borrower.

     

    19.  AMENDMENT.
      This
      Note may be amended or modified only by an instrument in writing which by its
      express terms refers to this Note and which is duly executed by the party sought
      to be bound thereby.

     

    20.  SUCCESSORS
      AND ASSIGNS.
      This
      Note shall be binding upon and inure to the benefit of the parties hereto and
      their respective heirs, executors, administrators, personal representatives,
      successors and permitted assigns.

     

    21.  TIME.
      Time is
      of the essence with respect to each and every term and provision of this
      Note.

     

    22.  NOTICES.
      All
      notices or other written communication under this Note shall be given in
      accordance with and governed by Section 9.02 of the Instrument.

     

    23.  LENDER’S
      RIGHTS; NO WAIVER BY LENDER.
      The
      rights, powers and remedies of Lender under this Note shall be in addition
      to
      all rights, powers and remedies given to Lender under the Documents and any
      other agreement or document securing or evidencing the Obligation or by virtue
      of any statute or rule of law, including the Uniform Commercial Code. All such
      rights, powers and remedies shall be cumulative and may be exercised
      successively or concurrently in Lender’s sole discretion without impairing
      Lender’s security interest, rights or available remedies. Any forbearance,
      failure or delay by Lender in exercising any right, power or remedy shall not
      preclude further exercise thereof, and every right, power or remedy of Lender
      shall continue in full force and effect until such right, power or remedy is
      specifically waived in a writing executed by Lender. Borrower waives any right
      to require Lender to proceed against any Person or to exhaust all or any part
      of
      the Mortgaged Property or to pursue any remedy in Lender’s power.

     

    24.  BORROWER’S
      WAIVERS.
      Borrower and any endorsers of this Note, and each of them, hereby waive
      diligence, demand, presentment for payment, notice of non-payment, protest
      and
      notice of protest, and specifically consent to and waive notice of any renewals
      or extensions of this Note, whether

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    25.  
      made to
      or in favor of Borrower or any other person or persons. Borrower and any
      endorsers of this Note expressly waive all right to the benefit of any statute
      of limitations and any moratorium, reinstatement, marshaling, forbearance,
      extension, or appraisement now or hereafter provided by the Constitution and
      the
      laws of the United States and of any state thereof, as a defense to any demand
      against Borrower or any such endorsers, to the fullest extent permitted by
      law.

     

    26.  ATTORNEYS’
      FEES.
      Borrower agrees to pay all costs, including reasonable attorneys’ fees and
      expenses (including court costs, expert witness fees, document reproduction
      expenses, costs of exhibit preparation, courier charges, postage and
      communication expenses), incurred by Lender in enforcing payment or collection
      of this Note or the terms of any Document, whether or not suit is
      filed.

     

    27.  CASH
      MANAGEMENT.
      During a
      Cash Trap Period, Borrower (and if reasonably required by Lender, tenants under
      Operating Leases and Managers) shall enter into cash management and bank
      agreements reasonably acceptable to Lender, all in form and substance
      substantially similar to the cash management and bank agreements Lender is
      then
      currently using in comparable transactions and subject to the terms of the
      Management Agreements and the Manager SNDAs. All documents and agreements
      evidencing the cash management shall be executed, delivered and become effective
      within not more than sixty (60) days following Lender’s initial request for cash
      management; and shall require all Gross Revenue (defined in the Management
      Agreements) to be deposited into certain, identified Operating Accounts (defined
      in the Manager SNDAs) approved by Lender. The identified Operating Accounts
      shall be pledged to Lender and shall be governed and controlled by bank account
      control agreements satisfactory to Lender. The funds deposited into the
      controlled Operating Accounts shall be disbursed from those Operating Accounts
      to enable Manager to make the required payments and reimbursements of operating
      expenses and fees as set forth in the Management Agreements, provided that
      during the pendency of a Cash Trap Period, at Lender’s election, in its sole
      discretion, all payments that are to be made to Operating Lessee or Borrower
      under the Management Agreements (including, without limitation, in Section
      7.02
      of the Management Agreements, Owner’s Priority Return, and any rent payments
      under the Operating Leases) shall be made to Lender or otherwise pursuant to
      the
      cash management agreements, and, during any Cash Trap Period arising as a result
      of an Event of Default, Lender may, subject to the provisions of the cash
      management agreements, change and adjust the priority of such payment
      obligations.

     

    For
      purposes of this provision, the a “Cash
      Trap Period”
shall
      commence (i) upon the occurrence of an Event of Default under the Documents,
      as
      determined by Lender, in its sole discretion, and/or (ii) upon the occurrence
      of
      a Low DSCR Period, and a Cash Trap Period shall terminate at such time as (i)
      the Loan is current and there exists no Event of Default or other occurrence
      or
      event that with the giving of notice or the passage of time, or both, could
      constitute an Event of Default under the Documents, as determined by Lender,
      in
      Lender’s sole discretion, and (ii) a Stabilized DSCR Period has occurred. For
      purposes hereof the term “Low
      DSCR Period”
shall
      mean a period of two (2) consecutive fiscal quarters during the term of the
      Loan
      during which the Debit Service Coverage Ratio is 1.20 or less, as reasonably
      determined by Lender. For purposes hereof the term “Stabilized
      DSCR Period”
shall
      mean a period of two (2) consecutive fiscal quarters during the term of the
      Loan
      during which the Debit Service Coverage Ratio is 1.40 or more, as reasonably
      determined by Lender. Any failure by Borrower to discharge, satisfy and comply
      strictly with the obligations of this section and the cash management
      obligations shall constitute an immediate, material Event of Default under
      the
      Documents. Implementation of cash management shall not, by itself, constitute
      a
      cure or waiver of any default or Event of Default under the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Documents.

     

    

     

    27. GUARANTY
      WAIVERS.
      If, and
      to the extent, any Borrower is deemed to be a surety or guarantor for any other
      Person or entity liable for all or any portion of the Obligations (a
      "Loan
      Principal"),
      the
      provisions of this Section
      27
      shall
      apply in all respects necessary to protect Lender and the liens and security
      interests created by or pursuant to the Documents:

     

    (a) No
      Suretyship Defenses.
      The
      Documents and the liability of any Borrower thereunder shall not be diminished
      or affected as a result of: (i) any lack of validity or enforceability of any
      of
      the Documents or any other agreement or instrument relating thereto; (ii) any
      change in the time, manner or place of payment of, or in any other term of,
      all
      or any of the Obligations, or any other amendment or waiver of or any consent
      to
      departure from any of the Documents, including changes in the terms of
      disbursement of the Loan proceeds or repayment thereof, modifications,
      extensions (including extensions beyond and after the Term) or renewals of
      payment dates, changes in Interest Rate or the advancement of additional funds
      by Lender in its discretion; (iii) any exchange, release or nonperfection of
      any
      collateral securing the Loan, or any release or amendment or waiver of or
      consent to departure from any guaranty, for all or any of the Obligations;
      and/or (iv) any other circumstance which
      might otherwise constitute a defense available to, or a discharge of, a Borrower
      in respect to any or all of the Obligations, or any guarantor in respect of
      its
      guaranty.

     

    (b) Suretyship
      Waivers.
      Each
      Borrower, to the extent deemed a guarantor or surety under the Documents, waives
      all rights and defenses arising out of an election of remedies by Lender, even
      though that election of remedies, such as a nonjudicial foreclosure with respect
      to security for a guaranteed obligation, has destroyed such Borrower's rights
      of
      subrogation and reimbursement against a Loan Principal, if any, by the operation
      of applicable provisions of law or otherwise. Notwithstanding the foregoing,
      and
      in addition thereto and without limiting the generality thereof, each Borrower
      hereby absolutely and irrevocably waives any and all (i) rights which such
      Borrower may have or may now or hereafter acquire by way of subrogation,
      reimbursement or indemnity against a Loan Principal by virtue of any payment
      made under the Documents or otherwise (including any payment made by a Loan
      Principal) in connection with the Obligations and/or the Mortgaged Property,
      and
      (ii) other claims or rights against a Loan Principal relating to the
      Documents or the Obligations. EACH
      BORROWER ACKNOWLEDGES THAT, PURSUANT TO THE FOREGOING PROVISIONS, SUCH BORROWER
      HAS WAIVED, AMONG OTHER SPECIFIC RIGHTS GRANTED TO SUCH BORROWER AT LAW OR
      IN
      EQUITY, SUCH BORROWER'S RIGHTS, IF ANY, TO SUBROGATION, REIMBURSEMENT AND/OR
      INDEMNITY AGAINST A LOAN PRINCIPAL. SUCH WAIVER INCLUDES A WAIVER OF SUCH
      BORROWER'S RIGHTS THROUGH SUBROGATION, AFTER PAYMENT OF BORROWER'S OBLIGATIONS
      UNDER THE DOCUMENTS, TO BE SUBSTITUTED IN PLACE OF LENDER WITH RESPECT TO THE
      OBLIGATIONS OF A LOAN PRINCIPAL SUCH THAT SUCH BORROWER COULD SUCCEED TO
      LENDER'S RIGHTS, REMEDIES AND/OR SECURITY RELATING TO SUCH OBLIGATIONS AND
      ASSERT A CLAIM AGAINST A LOAN PRINCIPAL. CERTAIN AUTHORITIES HAVE DETERMINED
      THAT, IN THE ABSENCE OF AN EFFECTIVE WAIVER, PARTICULAR ACTIONS OF A LENDER
      THAT
      IMPAIR OR DESTROY A GUARANTOR'S SUBROGATION RIGHTS COULD PROVIDE A GUARANTOR
      WITH A

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    DEFENSE
      TO THE PAYMENT AND PERFORMANCE OF BORROWER'S OBLIGATIONS UNDER THE DOCUMENTS.
      BY
      WAY OF EXAMPLE, BUT NOT LIMITATION, COURTS HAVE HELD THAT, ABSENT AN EFFECTIVE
      WAIVER, A GUARANTOR MAY BE EXONERATED FROM ITS OBLIGATIONS UNDER A GUARANTY
      IF A
      LENDER COMPROMISES OR EXTINGUISHES THE GUARANTOR'S SUBROGATION RIGHTS BY
      ELECTING TO FORECLOSE NON-JUDICIALLY, BY POWER OF SALE, ON REAL PROPERTY
      SECURITY THEREBY INVOKING ANY DEFICIENCY BAR UNDER APPLICABLE LAW. EACH BORROWER
      ACKNOWLEDGES THAT SUCH DEFENSES ARE INAPPLICABLE IN LIGHT OF SUCH BORROWER'S
      IRREVOCABLE WAIVER OF SUBROGATION, REIMBURSEMENT AND/OR INDEMNITY RIGHTS AGAINST
      A LOAN PRINCIPAL SET FORTH IN THIS SECTION 27 AND THAT NO ACTION BY LENDER
      IN
      ENFORCING ITS RIGHTS AND REMEDIES AGAINST BORROWER, OR ANY OTHER PERSON, OR
      OTHERWISE, MAY COMPROMISE OR EXTINGUISH SUCH RIGHTS BECAUSE EACH SUCH RIGHT
      HAS
      BEEN IRREVOCABLY WAIVED BY THE AFFECTED BORROWER HEREUNDER. EACH BORROWER HEREBY
      ACKNOWLEDGES THAT IT HAS BEEN NOTIFIED OF THE NATURE OF ALL OF ITS RIGHTS AND
      DEFENSES AS A GUARANTOR AND HAS KNOWINGLY AND WITH THE ADVICE OF LEGAL COUNSEL
      WAIVED SUCH RIGHTS AND DEFENSES AS SET FORTH HEREIN. EACH OF THE WAIVERS
      CONTAINED HEREIN WERE SEPARATELY BARGAINED FOR.

     

    (c) Enforcement.
      Each
      Borrower acknowledges that, to the extent it is deemed a guarantor or surety
      of
      the Obligations: (i) the obligations hereunder are independent of and in
      addition to the undertakings of a Loan Principal pursuant to the Documents,
      any
      evidence of indebtedness issued in connection therewith, any deed of trust,
      mortgage or security agreement given to secure the same, any other guaranties
      given in connection with the Loan, and any other obligations of Borrower to
      Lender; (ii) a separate action may be brought to enforce the provisions of
      the Documents whether or not a Loan Principal is a party in any such action;
      (iii) Lender may at any time, or from time to time, in its sole discretion,
      (A) extend or change the time of payment and/or performance and/or the
      manner, place or terms of payment and/or performance of all or any of the
      Obligations, (B) exchange, release and/or surrender all or any collateral
      security, or any part thereof, by whomsoever deposited, which is now or may
      hereafter be held by Lender in connection with all or any of the Obligations,
      (C) sell and/or purchase all or any such collateral at public or private
      sale, or at any broker's board, in the manner permitted by applicable law and
      after giving any notice which may be required, and after deducting all costs
      and
      expenses of every kind for collection, sale or delivery, the net proceeds of
      any
      such sale may be applied by Lender to all or any of the Obligations, and
      (D) settle or compromise with a Loan Principal, and/or any other Person
      liable thereon, any and all of the Obligations, and/or subordinate the payment
      of same, or any part thereof, to the payment of any other debts or claims,
      which
      may at any time be due or owing to Lender and/or any other person or
      corporation; and (iv) Lender shall be under no obligation to marshal any
      assets in favor of Borrower or in payment of any or all of the
      Obligations.

     

    (d) General
      Waivers.
      Each
      Borrower, to the extent deemed a guarantor or surety under the Documents, hereby
      waives (i) presentment, demand, protest, notice of acceptance, notice of
      dishonor, notice of nonperformance, and any other notice with respect to any
      of
      the obligations of a Loan Principal under the Documents and promptness in
      commencing suit against any party thereto or liable thereon, and/or in giving
      any notice to or making any claim or demand hereunder upon Borrower;
      (ii) any right to require Lender to (A) proceed against a Loan
      Principal, (B) proceed against or exhaust any

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    security
      held from a Loan Principal, or (C) pursue any remedy in Lender's power
      whatsoever; (iii) any defense arising by reason of any disability or other
      defense of a Loan Principal or by reason of the cessation from any cause
      whatsoever of the liability of such Loan Principal, other than payment and
      performance in full of the Obligations; (iv) to the fullest extent
      permitted by applicable law, all rights and benefits under applicable law
      purporting to reduce a guarantor's obligations in proportion to the principal
      obligation; (v) to the fullest extent permitted by applicable law, all
      rights and benefits under (A) any provision of applicable law purporting to
      limit the amount of any deficiency judgment which might be recoverable following
      the occurrence of a sale under any Instrument and any right to a fair value
      hearing or any fair value limitation or other limitation on liability or a
      deficiency based upon the fair value of any collateral after a nonjudicial
      foreclosure of any Instrument, (B) any provision of applicable law
      providing that no deficiency may be recovered on a real property purchase money
      obligation, and (C) any provision of applicable law providing that no
      deficiency may be recovered on a note secured by a deed of trust or mortgage
      on
      real property in case such real property is sold under the power of sale
      contained in such deed of trust or mortgage, and (D) any provision of applicable
      law provides that there may be but one form of action on an indebtedness secured
      by real property, if such provisions of law under clauses (A) - (D) above,
      or
      any of them, have any application to the Security Instruments, of any of them,
      or any application to Borrower; (vi) to the fullest extent permitted by
      law, (A) any defense arising as a result of Lender's election, in any
      proceeding instituted under the Bankruptcy Code, of the application of
      Section 1111(b)(2) of the Bankruptcy Code, (B) any defense based on
      any borrowing or grant of a security interest under Section 364 of the
      Bankruptcy Code, and (C) without limiting the generality of the foregoing
      or any other provision hereof, all rights, benefits and defenses of suretyship
      or guaranty which might otherwise be available to any Borrower under applicable
      law; and (vii) the benefit of any statute of limitations affecting the
      liability of any Borrower, under any Document, or the enforcement
      thereof.

     

    (e) Further
      Waivers.
      Each
      Borrower hereby waives all rights and defenses that it may have because the
      Indebtedness is secured by all of the Mortgaged Property, even though all of
      the
      Borrower Parties do not own all of, or have an interest whether direct or
      indirect in all of the Mortgaged Property. This means, among other things:
      (i)
      Lender may collect from Borrower without first foreclosing on all real or
      personal property collateral pledged by a Loan Principal; (ii) if Lender
      forecloses on any real property collateral pledged by a Loan Principal: (A)
      the
      amount of the debt may be reduced only by the price for which that collateral
      is
      sold at the foreclosure sale, even if the collateral is worth more than the
      sale
      price, and/or (B) Lender may collect from Borrower, even if Lender, by
      foreclosing on the real property collateral, has destroyed any right a Borrower
      may have to collect from a Loan Principal. This is an unconditional and
      irrevocable waiver of any rights and defenses each Borrower may have because
      a
      Loan Principal's obligations are secured by real property. These rights and
      defenses include any rights or defenses based upon any anti-deficiency and
      one-action rules under applicable law. Each Borrower waives all rights and
      defenses arising out of an election of remedies by Lender, even though that
      election of remedies, such as a nonjudicial foreclosure with respect to security
      for a guaranteed obligation, has destroyed such Borrower's rights of subrogation
      and reimbursement against a Loan Principal any one or more Borrower by the
      operation of applicable law or otherwise.

     

    (f) Borrower
      Warranties and Representations.
      Each
      Borrower warrants and represents that, to the extent deemed a guarantor or
      surety of the Obligations, or any of them, (i) the Documents are executed
      at the Loan Principal's request, (ii) Lender has made no representation to
      such Borrower as to the creditworthiness of any Loan Principal, and
      (iii) such Borrower assumes the responsibility for keeping informed of the
      financial condition of each Loan Principal and of all other

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    circumstances
      bearing upon the risk of nonpayment or nonperformance of the Obligations, and
      Lender shall have no duty to advise such Borrower of any information known
      to
      Lender regarding any such financial condition or circumstance. Each Borrower
      hereby irrevocably waives any defense which, absent this waiver, such Borrower
      would have that Borrower's obligations under the Documents could be exonerated
      based upon Lender's failure to inform such Borrower of the existing or ongoing
      financial condition of any Loan Principal, or of any other circumstances bearing
      upon the risk of nonpayment or nonperformance of the Obligations. Each Borrower
      warrants and represents that each of the waivers set forth herein is made with
      such Borrower's full knowledge of its significance and consequences and that,
      under the circumstances, the waivers are reasonable. If any of such waivers
      are
      determined to be contrary to any applicable law, such waivers shall be effective
      only to the extent permitted by law.

     

    (g) Obligations
      as Surety Additional Obligations.
      To the
      extent a Borrower is deemed a guarantor or surety of any or all of the
      Obligations, the obligations of such Borrower hereunder shall be in addition
      to
      any obligations of such Borrower under any other guaranties of the Obligations
      and/or any obligations of a Loan Principal or any other Persons heretofore
      given
      or hereafter to be given to Lender, and Documents shall not affect or invalidate
      any such other guaranties.

     

    

     

    (No
      further text on this page)

     

    (Signature
      pages follow)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      this
      Note has been executed by Borrower as of the date first set forth
      above.

     

    

    
      	 	
              PH
                HOTEL PARTNERS, LP,

              a
                Delaware limited partnership

               

            
	 	
              By: 
                PH HOTEL GP, LLC,

              a
                Delaware limited liability company

              Its:
                General Partner

               

            
	 	
               

              By: /s/
                John X. Brady, Jr.     

              Name:
                John X. Brady, Jr.

              Title:
                Vice President

               

            
	 	
              AH
                HOTEL PARTNERS, LP,

              a
                Delaware limited partnership

               

            
	 	
              By: 
                AH HOTEL GP, LLC

              a
                Delaware limited liability company

              Its:
                General Partner

               

            
	 	
               

              By: /s/
                John X. Brady, Jr.     

              Name:
                John X. Brady, Jr.

              Title:
                Vice President

            
	 	
               

              HMA
                HOTEL PARTNERS, LP,

              a
                Delaware limited partnership

               

            
	 	
              By: 
                HMA HOTEL GP, LLC,

              a
                Delaware limited liability company

              Its:
                General Partner

               

            
	 	
               

              By:
                /s/ John X. Brady, Jr. 

              Name:
                John X. Brady, Jr.

              Title:
                Vice President

            
	 	
              CM
                HOTEL PARTNERS, LP,

              a
                Delaware limited partnership

               

            
	 	
              By: 
                CM HOTEL GP, LLC,

              a
                Delaware limited liability company

              Its:
                General Partner

               

            
	 	
               

              By:  /s
                / John X. Brady, Jr.    

              Name:
                John X. Brady, Jr.

              Title:
                Vice President

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Exhibit
      A

    

    

    “Allocated
      Loan Amount”
shall
      mean,

    with
      respect to the Portland Property: $24,300,000;

    with
      respect to the Auburn Hills Property: $11,800,000;

    with
      respect to the Miami Airport Property: $43,300,000; and with

    respect
      to the Costa Mesa Property: $40,600,000.

    

    “Individual
      Loan”
shall
      mean, as the context requires, the portion of the Loan, the Obligations and
      the
      Documents related to the separate Allocated Loan Amount for each of the separate
      Individual Properties.

    

    “Individual
      Property”
shall
      mean, as the context requires, the Embassy Suites Portland Downtown
      (“Portland
      Property”),
      or
      the Hilton Suites Auburn Hills (“Auburn
      Hills Property”),
      or
      the Hilton Miami Airport Towers (“Miami
      Airport Property”),
      or
      the Hilton Costa Mesa (“Costa
      Mesa Property”).

    

    “Instrument”
shall
      mean collectively the following:

    

    1. Deed
      of
      Trust, Security Agreement and Fixture Filing recorded in the 

    Official
      Records of Multnomah County, Oregon: 
      PH Hotel
      Partners, LP

    

    2. Mortgage
      recorded in the 

    Official
      Records of Oakland County, Michigan: 
      AH Hotel
      Partners, LP

    

    3. Mortgage
      and Security Agreement recorded in the 

    Official
      Records of Dade County, Florida: 
      HMA
      Hotel Partners, LP

    

    4. Deed
      of
      Trust, Security Agreement and Fixture Filing recorded in the 

    Official
      Records of Orange County, California: 
      CM Hotel
      Partners, LPExhibit 10.123

    
      
        

      

     

    CM
      HOTEL
      PARTNERS, LP, as Borrower/mortgagor

    (Borrower)

     

    to

     

    THE
      PRUDENTIAL INSURANCE COMPANY OF AMERICA, as mortgagee/Lender

    (Lender)

     

     

     

    DEED
      OF
      TRUST, SECURITY AGREEMENT

    AND
      FIXTURE FILING

     

     

    Dated
      and
      Effective: As
      of
      April 3, 2006

     

                                
      Location:  3050
      Bristol Street, Costa Mesa, California

                                                      
      

                                                       Tax
      Lot: APN
      418-071-08 

                                              

                                             
      County:  Orange

      
      

                                                          Loan
      Number: 70-6-106-306

     

     

    PREPARED
      BY AND UPON RECORDATION RETURN TO:

     

    DLA
      Piper
      Rudnick Gray Cary US LLP

                                                        
      153
      Townsend Street, Suite 800

                                              San
      Francisco, CA 94107

                                                     
      Attention:
      Stephen A. Cowan

     

    

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

           

        

      

    

    

      
        	
                ARTICLE
                  I

                 

              	
                -
                  OBLIGATIONS

                 

              	 
	
                Section
                  1.01

                 

              	
                Obligations

                 

              	
                3

                 

              
	
                Section
                  1.02

                 

              	
                Documents

                 

              	
                4

                 

              
	
                ARTICLE
                  II

                 

              	
                -
                  REPRESENTATIONS AND WARRANTIES

                 

              	 
	
                Section
                  2.01

                 

              	
                Title,
                  Legal Status and Authority

                 

              	
                4

                 

              
	
                Section
                  2.02

                 

              	
                Validity
                  of Documents

                 

              	
                4

                 

              
	
                Section
                  2.03

                 

              	
                Litigation

                 

              	
                5

                 

              
	
                Section
                  2.04

                 

              	
                Status
                  of Property

                 

              	
                5

                 

              
	
                Section
                  2.05

                 

              	
                Tax
                  Status of Borrower

                 

              	
                5

                 

              
	
                Section
                  2.06

                 

              	
                Bankruptcy
                  and Equivalent Value

                 

              	
                6

                 

              
	
                Section
                  2.07

                 

              	
                Disclosure

                 

              	
                6

                 

              
	
                Section
                  2.08

                 

              	
                Illegal
                  Activity

                 

              	
                6

                 

              
	
                Section
                  2.09

                 

              	
                Executive
                  Order 13224

                 

              	
                6

                 

              
	
                ARTICLE
                  III

                 

              	
                -
                  COVENANTS AND AGREEMENTS

                 

              	 
	
                Section
                  3.01

                 

              	
                Payment
                  of Obligations

                 

              	
                6

                 

              
	
                Section
                  3.02

                 

              	
                Continuation
                  of Existence

                 

              	
                6

                 

              
	
                Section
                  3.03

                 

              	
                Taxes
                  and Other Charges

                 

              	
                6

                 

              
	
                Section
                  3.04

                 

              	
                Defense
                  of Title, Litigation, and Rights under Documents

                 

              	
                7

                 

              
	
                Section
                  3.05

                 

              	
                Compliance
                  with Laws and Operation and Maintenance of Property

                 

              	
                8

                 

              
	
                Section
                  3.06

                 

              	
                Insurance

                 

              	
                9

                 

              
	
                Section
                  3.07

                 

              	
                Damage
                  and Destruction of Property

                 

              	
                11

                 

              
	
                Section
                  3.08

                 

              	
                Condemnation

                 

              	
                13

                 

              
	
                Section
                  3.09

                 

              	
                Liens
                  and Liabilities

                 

              	
                14

                 

              
	
                Section
                  3.10

                 

              	
                Tax
                  and Insurance Deposits

                 

              	
                14

                 

              
	
                Section
                  3.11

                 

              	
                ERISA

                 

              	
                15

                 

              
	
                Section
                  3.12

                 

              	
                Environmental
                  Representations, Warranties, and Covenants

                 

              	
                16

                 

              
	
                Section
                  3.13

                 

              	
                Electronic
                  Payments

                 

              	
                17

                 

              
	
                Section
                  3.14

                 

              	
                Inspection

                 

              	
                18

                 

              
	
                Section
                  3.15

                 

              	
                Records,
                  Reports, and Audits

                 

              	
                18

                 

              

      

       

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      

        
          	
                  Section
                    3.16

                   

                	
                  Borrower’s
                    Certificates

                   

                	
                  19

                   

                
	
                  Section
                    3.17

                   

                	
                  Full
                    Performance Required; Survival of Warranties

                   

                	
                  19

                   

                
	
                  Section
                    3.18

                   

                	
                  Additional
                    Security

                   

                	
                  19

                   

                
	
                  Section
                    3.19

                   

                	
                  Further
                    Acts

                   

                	
                  20

                   

                
	
                  Section
                    3.20

                   

                	
                  Capital
                    Lease

                   

                	
                  20

                   

                
	
                  Section
                    3.21

                   

                	
                  Other
                    Leases

                   

                	
                  20

                   

                
	
                  Section
                    3.22

                   

                	
                  Inventory
                    Levels

                   

                	
                  21

                   

                
	
                  Section
                    3.23

                   

                	
                  Single
                    Purpose Entity

                   

                	
                  21

                   

                
	
                  ARTICLE
                    IV

                   

                	
                  -
                    ADDITIONAL ADVANCES; EXPENSES; SUBROGATION

                   

                	 
	
                  Section
                    4.01

                   

                	
                  Expenses
                    and Advances

                   

                	
                  22

                   

                
	
                  Section
                    4.02

                   

                	
                  Subrogation

                   

                	
                  22

                   

                
	
                  ARTICLE
                    V

                   

                	
                  -
                    SALE, TRANSFER, OR ENCUMBRANCE OF THE PROPERTY

                   

                	 
	
                  Section
                    5.01

                   

                	
                  Due-on-Sale
                    or Encumbrance

                   

                	
                  22

                   

                
	
                  Section
                    5.02

                   

                	
                  Permitted
                    Transfer

                   

                	
                  23

                   

                
	
                  Section
                    5.03

                   

                	
                  Permitted
                    Admission

                   

                	
                  24

                   

                
	
                  ARTICLE
                    VI

                   

                	
                  -
                    DEFAULTS AND REMEDIES

                   

                	 
	
                  Section
                    6.01

                   

                	
                  Events
                    of Default The following shall be an “Event of Default”:

                   

                	
                  25

                   

                
	
                  Section
                    6.02

                   

                	
                  Remedies

                   

                	
                  27

                   

                
	
                  Section
                    6.03

                   

                	
                  Expenses

                   

                	
                  28

                   

                
	
                  Section
                    6.04

                   

                	
                  Rights
                    Pertaining to Sales

                   

                	
                  29

                   

                
	
                  Section
                    6.05

                   

                	
                  Applications
                    of Proceeds

                   

                	
                  30

                   

                
	
                  Section
                    6.06

                   

                	
                  Additional
                    Provisions as to Remedies

                   

                	
                  30

                   

                
	
                  Section
                    6.07

                   

                	
                  Waiver
                    of Rights and Defenses

                   

                	
                  30

                   

                
	
                  ARTICLE
                    VII

                   

                	
                  -
                    SECURITY AGREEMENT AND FIXTURE FILING

                   

                	 
	
                  Section
                    7.01

                   

                	
                  Security
                    Agreement

                   

                	
                  31

                   

                
	
                  Section
                    7.02

                   

                	
                  Fixture
                    Filing

                   

                	
                  31

                   

                
	
                  ARTICLE
                    VIII

                   

                	
                  -
                    LIMITATION ON PERSONAL LIABILITY AND INDEMNITIES

                   

                	 
	
                  Section
                    8.01

                   

                	
                  Recourse
                    Liability

                   

                	
                  31

                   

                

        
 

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      

        
          	
                  Section
                    8.02

                   

                	
                  General
                    Indemnity

                   

                	
                  31

                   

                
	
                  Section
                    8.03

                   

                	
                  Transaction
                    Taxes Indemnity

                   

                	
                  31

                   

                
	
                  Section
                    8.04

                   

                	
                  ERISA
                    Indemnity

                   

                	
                  32

                   

                
	
                  Section
                    8.05

                   

                	
                  Environmental
                    Indemnity

                   

                	
                  32

                   

                
	
                  Section
                    8.06

                   

                	
                  Duty
                    to Defend, Costs and Expenses

                   

                	
                  32

                   

                
	
                  Section
                    8.07

                   

                	
                  Recourse
                    Obligation and Survival

                   

                	
                  32

                   

                
	
                  ARTICLE
                    IX

                   

                	
                  -
                    ADDITIONAL PROVISIONS

                   

                	 
	
                  Section
                    9.01

                   

                	
                  Usury
                    Savings Clause

                   

                	
                  32

                   

                
	
                  Section
                    9.02

                   

                	
                  Notices

                   

                	
                  33

                   

                
	
                  Section
                    9.03

                   

                	
                  Sole
                    Discretion of Lender

                   

                	
                  34

                   

                
	
                  Section
                    9.04

                   

                	
                  Applicable
                    Law and Submission to Jurisdiction

                   

                	
                  34

                   

                
	
                  Section
                    9.05

                   

                	
                  Construction
                    of Provisions

                   

                	
                  34

                   

                
	
                  Section
                    9.06

                   

                	
                  Transfer
                    of Loan

                   

                	
                  35

                   

                
	
                  Section
                    9.07

                   

                	
                  Miscellaneous

                   

                	
                  36

                   

                
	
                  Section
                    9.08

                   

                	
                  Entire
                    Agreement

                   

                	
                  36

                   

                
	
                  Section
                    9.09

                   

                	
                  WAIVER
                    OF TRIAL BY JURY

                   

                	
                  37

                   

                
	
                  Section
                    9.10

                   

                	
                  Partial
                    Release

                   

                	
                  38

                   

                
	
                  Section
                    9.11

                   

                	
                  Property
                    Substitutions

                   

                	
                  38

                   

                
	
                  Section
                    9.12

                   

                	
                  Concerning
                    the Trustee

                   

                	
                  38

                   

                
	
                  Section
                    9.13

                   

                	
                  Attorneys’
                    Fees

                   

                	
                  38

                   

                
	
                  Section
                    9.14

                   

                	
                  Standard
                    of Approval; Covenant of Good Faith and Fair Dealing

                   

                	
                  38

                   

                
	
                  ARTICLE
                    X

                   

                	
                  -
                    LOCAL LAW PROVISIONS

                   

                	 
	
                  Section
                    10.01

                   

                	
                  State
                    Specific Provisions

                   

                	
                  39

                   

                
	
                  ARTICLE
                    XI

                   

                	
                  -
                    OPERATING LEASE PROVISIONS

                   

                	 
	
                  EXHIBIT
                    A

                	 	 
	
                  EXHIBIT
                    B

                	 	 
	
                  EXHIBIT
                    C

                	 	 
	
                  EXHIBIT
                    D

                	 	 
	 	 	 

        

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

           

        

      

    

    

      DEFINITIONS

       

      The
        terms
        set forth below are defined in the following sections of this Deed of Trust
        and
        Security Agreement: 

       

      
        	
                Action

              	
                Section
                  9.04

              
	
                Additional
                  Funds 

              	
                Section
                  3.07 (c)

              
	
                Affecting
                  the Property

              	
                Section
                  3.12 (a)

              
	
                Affiliate
                  Loan

              	
                Section
                  5.01

              
	
                Affiliate
                  Loan Lender

              	
                Section
                  5.01

              
	
                All

              	
                Section
                  9.05 (m)

              
	
                Any

              	
                Section
                  9.05 (m)

              
	
                Assessments

              	
                Section
                  3.03 (a)

              
	
                Assignment

              	
                Recitals,
                  Section 2 (B)

              
	
                Awards

              	
                Section
                  3.08 (b)

              
	
                Bankruptcy
                  Code

              	
                Recitals,
                  Section 2 (A) (ix)

              
	
                Borrower

              	
                Preamble

              
	
                Costs

              	
                Section
                  4.01

              
	
                Damage

              	
                Section
                  3.07 (a)

              
	
                Default
                  Rate

              	
                Section
                  1.01 (a)

              
	
                Demand

              	
                Section
                  9.14 (n)

              
	
                Deposits

              	
                Section
                  3.10

              
	
                Documents

              	
                Section
                  1.02

              
	
                Environmental
                  Indemnity

              	
                Section
                  8.05

              
	
                Environmental
                  Law

              	
                Section
                  3.12 (a) 

              
	
                Environmental
                  Liens

              	
                Section
                  3.12 (b)

              
	
                Environmental
                  Report

              	
                Section
                  3.12 (a)

              
	
                ERISA

              	
                Section
                  3.11

              
	
                Event
                  of Default

              	
                Section
                  6.01

              
	
                Flood
                  Acts

              	
                Section
                  2.04 (a)

              
	
                Foreign
                  Person

              	
                Section
                  2.05

              
	
                Full
                  Replacement Cost

              	
                Section
                  3.06 (a)

              
	
                Grace
                  Period

              	
                Section
                  6.01(b)

              
	
                Hazardous
                  Materials

              	
                Section
                  3.12 (a)

              
	
                Impositions

              	
                Section
                  3.10

              
	
                Improvements

              	
                Recitals,
                  Section 2 (A) (ii)

              
	
                Include,
                  Including

              	
                Section
                  9.05 (f)

              
	
                Indemnified
                  Parties

              	
                Section
                  8.02

              
	
                Indemnify

              	
                Section
                  8.02

              
	
                Instrument

              	
                Preamble

              
	
                Insurance
                  Premiums

              	
                Section
                  3.10

              
	
                Investors

              	
                Section
                  9.06

              
	
                Land

              	
                Recitals,
                  Section 2 (A) (i)

              
	
                Laws

              	
                Section
                  3.05(c)

              
	
                Lease

              	
                Section
                  9.05 (k)

              
	
                Leases

              	
                Recitals,
                  Section 2 (A) (ix)

              
	
                Lender

              	
                Preamble

              
	
                Lessee

              	
                Section
                  9.05 (k)

              
	
                Lessor

              	
                Section
                  9.05 (k)

              
	
                Liens

              	
                Section
                  3.09

              
	
                Loan

              	
                Recitals,
                  Section 1

              
	
                Losses

              	
                Section
                  8.02

              
	
                Major
                  Tenants

              	
                Section
                  3.21

              
	
                Microbial
                  Matter

              	
                Section
                  3.12 (a)

              
	
                Net
                  Proceeds

              	
                Section
                  3.07 (d)

              
	
                Note

              	
                Recitals,
                  Section 1

              
	
                Notice

              	
                Section
                  9.02

              
	
                Obligations

              	
                Section
                  1.01

              
	
                On
                  Demand

              	
                Section
                  9.05 (n)

              
	
                Operating
                  Lessee

              	
                Recitals,
                  Section 2 (A) (vi)

              
	
                Operating
                  Lease

              	
                Recitals,
                  Section 2 (A) (ix)

              
	
                Organization
                  State

              	
                Section
                  2.01

              
	
                Owned

              	
                Section
                  9.05 (l)

              
	
                Permitted
                  Encumbrances

              	
                Section
                  2.01

              
	
                Person

              	
                Section
                  9.05 (i)

              
	
                Personal
                  Property

              	
                Section
                  6.02 (j)

              
	
                Prepayment
                  Premium

              	
                Section
                  1.01 (a)

              
	
                Proceeding

              	
                Section
                  6.01 (b)

              
	
                Property

              	
                Recitals,
                  Section 2 (A)

              
	
                Property
                  State

              	
                Section
                  2.01

              
	
                Provisions

              	
                Section
                  9.05 (j)

              
	
                Rating
                  Agency

              	
                Section
                  9.06

              
	
                Release

              	
                Section
                  3.12 (a)

              
	
                Rent
                  Loss Proceeds

              	
                Section
                  3.07 (c)

              
	
                Rents

              	
                Recitals,
                  Section 2 (A) (x)

              
	
                Restoration

              	
                Section
                  3.07 (a)

              
	
                Securities

              	
                Section
                  9.06

              
	
                Security
                  Agreement

              	
                Section
                  7.01

              
	
                Taking

              	
                Section
                  3.08 (a)

              
	
                Tenant

              	
                Recitals,
                  Section 2 (A) (vi)

              
	
                Tenants

              	
                Section
                  9.05 (k)

              
	
                Transaction
                  Taxes

              	
                Section
                  3.03 (c)

              
	
                Trustee

              	
                Preamble,
                  Section 9.05 (o)

              
	
                UCC

              	
                Section
                  2.02

              
	
                Unsecured
                  Obligations

              	
                Section
                  10.01 (b)

              
	
                Upon
                  Demand

              	
                Section
                  9.05 (n)

              
	
                Violation

                 

              	
                Section
                  3.11

                 

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DEED
      OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING

     

    THIS
      DEED
      OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING
      (this
“Instrument”)
      is
      dated and effective as of the 3rd day of April, 2006, by CM
      HOTEL PARTNERS, LP,
      a
      Delaware limited partnership, having its principal office and place of business
      at c/o CNL Hospitality Corp., 420 South Orange Avenue, Suite 700, Orlando,
      Florida 32801-3313, as Borrower/mortgagor (“Borrower”),
      to
FIRST
      AMERICAN TITLE COMPANY,
      a
      California corporation, having an address at 2 First American Way, Santa Ana,
      CA
      92707, as trustee (“Trustee”),
      for
      the benefit of THE
      PRUDENTIAL INSURANCE COMPANY OF AMERICA,
      a New
      Jersey corporation, having an office at c/o Prudential Asset Resources, 2200
      Ross Avenue, Suite 4900-E, Dallas, Texas 75201, as mortgagee/Lender
      (“Lender”).
      

     

    RECITALS:

     

    1. Borrower,
      by the terms of its Promissory
      Note (“Note”)
      executed on the same date as this Instrument and in connection with the loan
      (“Loan”)
      from
      Lender to Borrower and other entities affiliated with Borrower, is indebted
      to
      Lender in the principal sum of up to ONE HUNDRED TWENTY MILLION AND NO/100
      U.S.
      DOLLARS ($120,000,000.00). The Maturity Date of the Loan set forth in the Note
      is April 5, 2011.

     

    2. Borrower
      desires to secure the payment of and the performance of all of its obligations
      under the Note and certain additional Obligations (as defined in Section 1.01
      hereof).

     

    IN
      CONSIDERATION of the principal sum of the Note, and other good and valuable
      consideration, the receipt and sufficiency of which are acknowledged, Borrower
      irrevocably:

     

    A. Grants,
      bargains, sells, assigns, transfers, pledges, mortgages, warrants, and conveys
      to Trustee and Lender, and grants Trustee/Lender, for the benefit of Lender,
      a
      security interest in, the following property, rights, interests and estates
      owned by Borrower (collectively, the “Property”):

     

    (i) The
      real
      property in Orange County, State of California, and described in Exhibit
      “A”
      attached
      hereto (“Land”);

     

    (ii) All
      buildings, structures and improvements (including fixtures) now or later located
      in or on the Land (“Improvements”);

     

    (iii) All
      easements, estates, and interests including hereditaments, servitudes,
      appurtenances, tenements, mineral and oil/gas rights, water rights, (riparian,
      appropriative or otherwise and whether or not appurtenant), water, water
      courses, water stock, air rights, development power or rights, options,
      reversion and remainder rights, and any other rights owned by Borrower and
      relating to or usable in connection with or access to the Property (including,
      without limitation, all party rights);

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iv) All
      right, title, and interest owned by Borrower in and to all land lying within
      the
      rights-of-way, roads, or streets, open or proposed, adjoining the Land to the
      center line thereof, and all sidewalks, alleys, and strips and gores of land
      adjacent to or used in connection with the Property;

     

    (v) All
      right, title, and interest of Borrower in, to, and under all plans,
      specifications, surveys, studies, reports, permits, licenses, agreements,
      contracts, instruments, books of account, insurance policies, and any other
      documents relating to the use, construction, occupancy, leasing, activity,
      or
      operation of the Property;

     

    (vi) All
      fixtures and personal property described in Exhibit
      B
      owned by
      Borrower and replacements thereof; but excluding all personal property owned
      by
      any tenant (a “Tenant”),
      including AH Tenant Corporation (“Operating
      Lessee”),
      of
      the Property;

     

    (vii) All
      of
      Borrower’s right, title and interest in the proceeds (including conversion to
      cash or liquidation claims) of (A) insurance relating to the Property and (B)
      all awards made for the taking by eminent domain (or by any proceeding or
      purchase in lieu thereof) of the Property, including awards resulting from
      a
      change of any streets (whether as to grade, access, or otherwise) and for
      severance damages;

     

    (viii)
      All tax refunds, including interest thereon, tax rebates, tax credits, and
      tax
      abatements, and the right to receive the same, which may be payable to Borrower
      or available to Borrower with respect to the Property;

     

    (ix) All
      of
      Borrower’s right, title and interest in and to all leasehold estates, ground
      leases, leases, (including, without limitation, that certain Amended and
      Restated Lease Agreement dated as of April 3, 2006 respecting the Property
      entered into with the Operating Lessee, as Tenant (the “Operating
      Lease”)
      subleases, licenses, or other agreements, including, without limitation, all
      reservations, security interests, contractual liens and security deposits,
      affecting the use, enjoyment or occupancy of the Property now or later existing
      (including any use or occupancy arrangements created pursuant to Title 7 or
      11
      of the United States Code, as amended from time to time, or any similar federal
      or state laws now or later enacted for the relief of debtors (the “Bankruptcy
      Code”)
      and
      all extensions and amendments thereto (collectively, the “Leases”)
      including all guaranties thereof; and

     

    (x) All
      of
      Borrower’s right, title and interest in and to all rents, issues, profits,
      royalties, receivables, use and occupancy charges (including, without
      limitation, all oil, gas or other mineral royalties and bonuses), room rents,
      revenues, accounts and receivables derived from the use or occupancy of all
      or
      any portion of the Improvements, all revenues and credit card receipts collected
      from guest rooms, restaurants, bars, meeting rooms, banquet rooms and
      recreational facilities, all receivables, customer obligations, installment
      payment obligations and other obligations now existing or hereafter arising
      or
      created out of the sale, lease, sublease, license, concession or other grant
      of
      the right of the use and occupancy of property or rendering of services by
      Borrower or any operator or manager of the hotel or the commercial space located
      in the Improvements or acquired from others (including, without limitation,
      from
      the rental of any office space, retail space, guest rooms, conference rooms,
      meeting rooms, or other space, halls, stores, and offices, and fees and deposits
      securing reservations of such space), license, lease, sublease and concession
      fees and rentals, parking fees and revenues, health club membership fees, food
      and beverage wholesale and retail sales (including mini-bar revenues), service
      charges, vending machine sales and proceeds, if any, from business interruption
      or other loss of income insurance and
      other
      sums payable by the tenants, whether evidenced by the Leases or other
      instruments),
      income
      and other benefits now or later derived from any portion or use of the Property
      (including any payments received with respect to any Tenant, any reservation
      party, or the Property pursuant to the Bankruptcy Code) and all cash, security
      deposits, advance rentals, or similar payments relating thereto (collectively,
      the “Rents”)
      and
      all proceeds from the cancellation, termination, surrender, sale or other
      disposition of any reservation and the Leases, and the right to receive and
      apply the Rents and all such other amounts to the payment of the
      Obligations.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    B. Absolutely
      and unconditionally assigns, sets over, and transfers to Lender all of
      Borrower’s right, title, interest and estates in and to the Leases and the
      Rents, subject to the terms and license granted to the Borrower under that
      certain Assignment of Leases and Rents made by Borrower to Lender dated the
      same
      date as this Instrument (the “Assignment”),
      which
      document shall govern and control the provisions of this
      assignment.

     

    C. Absolutely
      and unconditionally assign, sets over, and transfers to Lender all of Borrower’s
      right, title, interest and estates in and to all agreements, leases, franchises
      and contracts pertaining to the operation of the Property, subject to the terms
      and license granted to Borrower under that certain Assignment of Agreements
      made
      by Borrower to Lender dated the same date as this Instrument (the “Assignment
      of Agreements”),
      which
      document shall govern and control the provisions of this
      assignment.

     

    TO
      HAVE
      AND TO HOLD the Property unto the Lender and Trustee, and its/their successors
      and assigns forever, subject only to the provisions of this
      Instrument.

     

    IN
      TRUST,
      WITH POWER OF SALE, to secure payment and performance of the Obligations in
      the
      time and manner set forth in the Documents (defined below). Notwithstanding
      the
      foregoing or any other term contained herein or in the Documents, none of
      Borrower's obligations under or pursuant to the Environmental Indemnity (defined
      below) shall be secured by the lien of this Instrument.

     

    PROVIDED,
      HOWEVER, if and when Borrower shall fully pay and perform the Obligations as
      provided for in the Documents (defined below) and shall comply with and fully
      discharge all the provisions in the Documents, these presents and the estates
      hereby granted (except for the obligations of Borrower set forth in Sections
      3.11 and 3.12 and Article VIII hereof) shall cease and terminate.

     

    IN
      FURTHERANCE of the foregoing, Borrower warrants, represents, covenants and
      agrees as follows:

     

    ARTICLE
      I  -
      OBLIGATIONS

     

    Section
      1.01  
      Obligations.
      This
      Instrument is executed, acknowledged, and delivered by Borrower to secure and
      enforce the following obligations (collectively, the “Obligations”):

     

    (a)  Payment
      of all obligations, indebtedness and liabilities under the Documents including,
      without limitation, (i) the Prepayment Premium (as defined in the Note), (ii)
      interest at both the rate specified in the Note and at the Default Rate (as
      defined in the Note), if applicable and to the extent not prohibited by Laws
      (defined below), and (iii) renewals, extensions, and amendments of the
      Documents;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)  Performance
      of every obligation, covenant, and agreement under the Documents (except any
      obligation, covenant, and agreement of Lender or Manager) including renewals,
      extensions, and amendments of the Documents; and

     

    (c)  Payment
      of all sums advanced (including costs and expenses) by Lender pursuant to the
      Documents including renewals, extensions, and amendments of the
      Documents.

     

    Section
      1.02  
      Documents.
      The
“Documents”
shall
      mean each and all of the documents and agreements listed on Exhibit
      D
      attached
      hereto and by this reference a part hereof, and every other written agreement
      executed in connection with the Loan (but excluding the Loan application and
      Loan commitment) and by the party against whom enforcement is sought, including
      those given to evidence or further secure the payment and performance of any
      of
      the Obligations, and any written renewals, extensions, and amendments of the
      foregoing, executed by the party against whom enforcement is sought. All of
      the
      provisions of the Documents are incorporated into this Instrument as if fully
      set forth in this Instrument. All capitalized terms used herein that are not
      otherwise defined herein shall have the meaning ascribed to such terms in the
      Note.

     

    ARTICLE
      II  -
      REPRESENTATIONS AND WARRANTIES

     

    Borrower
      hereby represents and warrants to Lender as follows:

     

    Section
      2.01  
      Title, Legal Status and Authority.
      Borrower (i) is seised of the Land and Improvements, and good and marketable
      fee
      title, to the Property, free and clear of all liens, charges, encumbrances,
      and
      security interests, except the matters listed in Exhibit
      C
      attached
      hereto (“Permitted
      Encumbrances”);
      (ii) will forever warrant and defend its title to the Property and the
      validity, enforceability, and priority of the lien and security interest created
      by this Instrument against the claims of all persons; (iii) is a limited
      partnership duly organized, validly existing, and in good standing and qualified
      to transact business under the laws of its state of organization or
      incorporation (“Organization
      State”)
      and
      the state where the Property is located (“Property
      State”);
      and
      (iv) has all necessary approvals, governmental and otherwise, and full power
      and
      authority to own its properties (including the Property) and carry on its
      business.

     

    Section
      2.02  
      Validity of Documents.
      The
      execution, delivery and performance of the Documents and the borrowing evidenced
      by the Note (i) are within the power of Borrower; (ii) have been authorized
      by
      all requisite action; (iii) have received all necessary approvals and consents;
      (iv) will not violate, conflict with, breach, or constitute (with notice or
      lapse of time, or both) a default under (1) any law, order or judgment of any
      court, governmental authority, or the governing instrument of Borrower or (2)
      any indenture, agreement, or other instrument to which Borrower is a party
      or by
      which it or any of its property is bound or affected; (v) will not result in
      the
      creation or imposition of any lien, charge, or encumbrance upon any of its
      properties or assets except for those in this Instrument; and (vi) will not
      require any authorization or license from, or any filing with, any governmental
      or other body (except for the recordation of this Instrument, the Assignment
      and
      Uniform Commercial Code (“UCC”)
      filings). The Documents constitute legal, valid, and binding obligations of
      Borrower.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      2.03  
      Litigation.
      There
      is no action, suit, or proceeding, judicial, administrative, or otherwise
      (including any condemnation or similar proceeding), pending or, to the knowledge
      of Borrower, threatened or contemplated against, or affecting, Borrower or
      the
      Property which would have a material adverse effect on either the Property
      or
      Borrower’s ability to perform its obligations.

     

    Section
      2.04  
      Status of Property.

     

    (a)  The
      Land
      and Improvements are not located in an area identified by the Secretary of
      Housing and Urban Development, or any successor, as an area having special
      flood
      hazards pursuant to 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 have been or may be amended, or any successor law (collectively, the
“Flood
      Acts”)
      or, if
      located within any such area, Borrower has and will maintain the insurance
      prescribed in Section 3.06 below.

     

    (b)  Borrower
      has all necessary (i) certificates, licenses, and other approvals, governmental
      and otherwise, for the operation of the Property and the conduct of its business
      and (ii) zoning, building code, land use, environmental and other similar
      permits or approvals, all of which are currently in full force and effect and
      not subject to revocation, suspension, forfeiture, or modification. The Property
      and its use and occupancy is in full compliance with all Laws and Borrower
      has
      received no notice of any violation or potential violation of the Laws which
      has
      not been remedied or satisfied.

     

    (c)  The
      Property is served by all utilities (including water and sewer) required for
      its
      use.

     

    (d)  All
      public roads and streets necessary to serve the Property for its use have been
      completed, are serviceable, are legally open, and have been either dedicated
      to
      and accepted by the appropriate governmental entities or granted by a recorded
      easement or right of way.

     

    (e)  The
      Property is free from damage caused by fire or other casualty.

     

    (f)  All
      costs
      and expenses for labor, materials, supplies, and equipment used in the
      construction of the Improvements have been paid in full.

     

    (g)  Borrower
      or Operating Lessee owns and has paid in full for, or leases pursuant to the
      Capital Leases, all furnishings, fixtures, and equipment (other than Tenants’
property (which term “Tenant” shall not include Operating Lessee for purposes of
      this section)) used in connection with the operation of the Property, free
      of
      all security interests, liens, or encumbrances except the Permitted
      Encumbrances, the Capital Leases, and those created by this
      Instrument.

     

    (h)  The
      Property is assessed for real estate tax purposes as one or more wholly
      independent tax lot(s), separate from any adjoining land or improvements and
      no
      other land or improvements is assessed and taxed together with the
      Property.

     

    Section
      2.05  
      Tax Status of Borrower.
      Borrower is not a “foreign person” within the meaning of Sections 1445 and 7701
      of the Internal Revenue Code of 1986, as amended, and the regulations
      thereunder.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      2.06  
      Bankruptcy and Equivalent Value.
      No
      bankruptcy, reorganization, insolvency, liquidation, or other proceeding for
      the
      relief of debtors has been instituted by or against Borrower, or any general
      partner of Borrower. Borrower has received reasonably equivalent value for
      granting this Instrument.

     

    Section
      2.07  
      Disclosure.
      Borrower has disclosed to Lender all material facts and has not failed to
      disclose any material fact that could cause any representation or warranty
      made
      herein to be materially misleading. There has been no adverse change in any
      condition, fact, circumstance, or event that would make any such information
      materially inaccurate, incomplete or otherwise misleading.

     

    Section
      2.08  
      Illegal Activity.
      No
      portion of the Property has been or will be purchased, improved, fixtured,
      equipped or furnished with proceeds of any illegal activity and, to the best
      of
      Borrower’s knowledge, there are no illegal activities at or on the
      Property.

     

    Section
      2.09  
      Executive Order 13224. Borrower
      and all persons or entities holding any legal or beneficial interest whatsoever
      in Borrower, including, without limitation any guarantor, are not included
      in,
      owned by, controlled by, acting for or on behalf of, providing assistance,
      support, sponsorship, or services of any kind to, or otherwise associated with
      any of the persons or entities referred to or described in Executive Order
      13224
-
      Blocking
      Property and Prohibiting Transactions with Persons Who Commit, Threaten to
      Commit, or Support Terrorism, as amended. It shall constitute an Event of
      Default hereunder if the foregoing representation and warranty shall ever become
      false.

     

    ARTICLE
      III  -
      COVENANTS AND AGREEMENTS

     

    Borrower
      covenants and agrees with Lender as follows:

     

    Section
      3.01  
      Payment of Obligations.
      Borrower shall timely pay and cause to be performed the
      Obligations.

     

    Section
      3.02  
      Continuation of Existence.
      Borrower shall not (a) dissolve, terminate, or otherwise dispose of, directly,
      indirectly or by operation of law, all or substantially all of its assets;
      (b)
      reorganize or change its legal structure without Lender’s prior written consent;
      (c) change its name, address, or the name under which Borrower conducts its
      business without promptly notifying Lender; or (d) do anything to cause the
      representations in Section 2.02 to become untrue.

     

    Section
      3.03  
      Taxes and Other Charges

     

    (a)  Payment
      of Assessments. Borrower shall pay when due (but in all events at least one
      business day prior to the date any fine, penalty, interest or charge for
      nonpayment may be imposed, referred to herein as the “Tax
      Payment Date”)
      all
      taxes, liens, assessments, utility charges (public or private and including
      sewer fees), ground rents, maintenance charges, dues, fines, impositions, and
      public and other charges of any character (including penalties and interest)
      assessed against, or which are liens or could become a lien against, the
      Property (“Assessments”).
      Unless Borrower is making deposits per Section 3.10, Borrower shall provide
      Lender with receipts evidencing such payments (except for income taxes,
      franchise taxes, ground rents, maintenance charges, and utility charges) within
      thirty (30) days after the Tax Payment Date.

     

    (b)  Right
      to
      Contest. So long as no Event of Default (defined below) is continuing, Borrower
      may, prior to delinquency and at its sole expense, contest any Assessment,
      but
      this shall not change or extend Borrower’s obligation to pay the Assessment as
      required above unless (i) Borrower gives Lender prior written notice of its
      intent to contest an Assessment; (ii) Borrower demonstrates to Lender’s
      reasonable satisfaction that (1) the Property will not be sold to satisfy the
      Assessment prior to the final determination of the legal proceedings, (2) it
      has
      taken such actions as are required or permitted to accomplish a stay of any
      such
      sale, or (3) it has furnished a bond or surety (satisfactory to Lender in form
      and amount) sufficient to prevent a sale of the Property; (iii) at Lender’s
      option, Borrower has deposited the full amount necessary to pay any unpaid
      portion of the Assessments with Lender; and (iv) such proceeding shall be
      permitted under any other instrument to which Borrower or the Property is
      subject (whether superior or inferior to this Instrument); provided, however,
      that the foregoing shall not apply to the contesting of any income taxes,
      franchise taxes, ground rents, maintenance charges, and utility
      charges.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  Documentary
      Stamps and Other Charges. Borrower shall pay all taxes, assessments, charges,
      expenses, costs and fees (including registration and recording fees and revenue,
      transfer, stamp, intangible, and any similar taxes)(collectively, the
“Transaction
      Taxes”)
      required in connection with the making and/or recording of any of the Documents.
      If Borrower fails to pay the Transaction Taxes after demand, Lender may (but
      is
      not obligated to) pay these and Borrower shall reimburse Lender on demand for
      any amount so paid with interest at the applicable interest rate specified
      in
      the Note, which shall be the Default Rate unless prohibited by Laws.
      Notwithstanding anything to the contrary in this Mortgage or any of the other
      Documents, this Section 3.03(c) shall survive repayment of the Note and
      satisfaction of this Deed of Trust.

     

    (d)  Changes
      in Laws Regarding Taxation. If any law (i) deducts from the value of real
      property for the purpose of taxation any lien or encumbrance thereon, (ii)
      taxes, deeds of trust, or debts secured by deeds of trust for federal, state
      or
      local purposes or changes the manner of the collection of any such existing
      taxes, and/or (iii) imposes a tax, either directly or indirectly, on any of
      the
      Documents or the Obligations, Borrower shall, if permitted by law, pay such
      tax
      within the statutory period or within twenty (20) days after demand by Lender,
      whichever is less; provided, however, that if, in the reasonable opinion of
      Lender, Borrower is not permitted by law to pay such taxes, Lender shall have
      the option to declare the Obligations immediately due and payable (without
      any
      Prepayment Premium) upon sixty (60) days’ notice to Borrower.

     

    (e)  No
      Credits on Account of the Obligations. Borrower will not claim or be entitled
      to
      any credit(s) on account of the Obligations for any part of the Assessments
      and
      no deduction shall be made or claimed from the taxable value of the Property
      for
      real estate tax purposes by reason of the Documents or the Obligations. If
      such
      claim, credit or deduction is required by law, Lender shall have the option
      to
      declare the Obligations immediately due and payable (without any Prepayment
      Premium) upon sixty (60) days’ notice to Borrower.

     

    Section
      3.04  
      Defense of Title, Litigation, and Rights under
      Documents.
      Borrower shall forever warrant, defend and preserve Borrower’s title to the
      Property, the validity, enforceability and priority of this Instrument and
      the
      lien or security interest created thereby, and any rights of Lender and/or
      Trustee under the Documents against the claims of all persons, and shall
      promptly notify Lender and Trustee of any such claims. Lender and/or Trustee
      (whether or not named as a party to such proceedings) is authorized and
      empowered (but shall not be obligated) to take such additional steps as it
      may
      reasonably deem necessary or proper for the defense of any such proceeding
      or
      the protection of the lien, security interest, validity, enforceability, or
      priority of this Instrument, title to the Property, or any rights of Lender
      and/or Trustee under the Documents, including the employment of counsel, the
      prosecution and/or defense of litigation, the compromise, release, or discharge
      of such adverse claims, the purchase of any tax title, the removal of any such
      liens and security interests, and any other actions Lender and/or Trustee deems
      necessary to protect its/their interests. Borrower authorizes Lender and/or
      Trustee to take any actions required to be taken by Borrower, or permitted
      to be
      taken by Lender and/or Trustee, in the Documents in the name and on behalf
      of
      Borrower. Borrower shall reimburse Lender and Trustee on demand for all expenses
      (including attorneys’ fees) incurred by them/it in connection with the foregoing
      and Lender’s exercise of its/their rights under the Documents. All such expenses
      of Lender and/or Trustee, until reimbursed by Borrower, shall be part of the
      Obligations, bear interest at the applicable interest rate specified in the
      Note, which shall be the Default Rate unless prohibited by Laws, and shall
      be
      secured by this Instrument.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.05  
      Compliance with Laws and Operation and Maintenance of
      Property.

     

    (a)  Repair
      and Maintenance. Borrower will operate and maintain the Property in good order,
      repair, and operating condition. Borrower will promptly make all necessary
      repairs, replacements, additions, and improvements necessary to ensure that
      the
      Property shall not in any way be materially diminished or impaired. Borrower
      will not cause or allow any of the Property to be misused, wasted, or to
      deteriorate and Borrower will not abandon the Property. No new building,
      structure, or other improvement shall be constructed on the Land nor shall
      any
      material part of the Improvements be removed, demolished, or structurally or
      materially altered, without Lender’s prior written consent.

     

    (b)  Replacement
      of Property. Borrower will keep the Property fully equipped and will replace
      all
      worn out or obsolete Property (including fixtures) with replacement Property
      that is new and/or of better quality than the replaced Property. Borrower will
      not, without Lender’s prior written consent, remove any Property covered by this
      Instrument unless the same is replaced by Borrower with Property that is new
      and/or of better quality than the replaced Property and the replacement Property
      (i) is owned by Borrower free and clear of any lien or security interest
      (other than the Permitted Encumbrances and those created by this Instrument)
      or
      (ii) is leased by Borrower (A) with Lender’s prior written consent or (B)
      if the replaced Property was leased at the time of execution of this
      Instrument.

     

    (c)  Compliance
      with Laws. Borrower shall comply with and shall cause the Property to be
      maintained, used, and operated in full compliance with all (i) present and
      future laws, Environmental Laws (defined below), ordinances, regulations, rules,
      orders and requirements (including zoning and building codes) of any
      governmental or quasi-governmental authority or agency applicable to Borrower
      or
      the Property (collectively, the “Laws”);
      (ii)
      orders, rules, and regulations of any regulatory, licensing, accrediting,
      insurance underwriting or rating organization, or other body exercising similar
      functions; (iii) duties or obligations of any kind imposed under any Permitted
      Encumbrance or by law, covenant, condition, agreement, or easement, public
      or
      private; and (iv) policies of insurance at any time in force with respect to
      the
      Property. If proceedings are initiated or Borrower receives notice that Borrower
      or the Property is not in compliance with any of the foregoing, Borrower will
      promptly send Lender notice and a copy of the proceeding or violation notice.
      Without limiting Lender’s rights and remedies under Article VI or otherwise, if
      Borrower or the Property is not in compliance with all Laws, Lender may impose
      additional requirements upon Borrower including monetary reserves or financial
      equivalents.

     

    (d)  Zoning
      and Title Matters. Borrower shall not, without Lender’s prior written consent,
      (i) initiate or support any zoning reclassification of the Property or variance
      under existing zoning ordinances; (ii) modify or supplement any of the Permitted
      Encumbrances; (iii) impose any restrictive covenants or encumbrances upon the
      Property; (iv) execute or file any subdivision plat affecting the Property;
      (v)
      consent to the annexation of the Property to any municipality; (vi) permit
      the
      Property to be used by the public or any person in a way that might make a
      claim
      of adverse possession or any implied dedication or easement possible; (vii)
      cause or permit the Property to become a non-conforming use under zoning
      ordinances or any present or future non-conforming use of the Property to be
      discontinued; or (viii) fail to comply or cause compliance with the terms of
      the
      Permitted Encumbrances.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.06  
      Insurance.

     

    (a)  Property
      and Time Element Insurance. Borrower shall maintain or cause its Manager to
      maintain insurance coverage of the types and minimum limits, during the term
      of
      this Instrument, to keep the Property appropriately insured for the benefit
      of
      Borrower and Lender (with Lender named as mortgagee) by (i) an “All Risks of
      Physical Loss” property insurance policy with an agreed amount endorsement for
“full replacement cost” (defined below) without any coinsurance provisions or
      penalties, or the broadest form of coverage available, in an amount sufficient
      to prevent Lender from ever becoming a coinsurer under the policy or Laws,
      and
      with a deductible not to exceed One Hundred Thousand Dollars ($100,000.00)
      for
      all perils and shall not exceed 5% of the insured value of the Property with
      respect to non-Federal flood insurance; (ii) a policy or endorsement insuring
      against acts of terrorism throughout the term of the Loan (including any
      extension terms) on a per occurrence basis in an amount equal to the Terrorism
      Insurance Amount (the “Terrorism
      Insurance Amount”
      shall
      mean an amount equal to the full replacement cost of the Property); (iii) loss
      of rents insurance and business income insurance, as applicable, (A) with loss
      payable to Lender and Borrower as their interest may appear; (B) covering all
      risks required to be covered by the insurance provided for in this
      section;
      and (C)
      which provides that after the physical loss to the Property occurs, the loss
      of
      rents and income, as applicable, will be insured until such rents or income,
      as
      applicable, either return to the same level that existed prior to the loss,
      or
      the expiration of twelve (12) months, whichever first occurs, and
      notwithstanding that the policy may expire prior to the end of such period;
      and
      (D) which contains 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 such 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. The amount of such loss
      of
      rents and business income insurance, as applicable, 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 less non-continuing expenses from the
      Property for the succeeding period of coverage required above.; (v) flood
      insurance if any part of any structure or improvement comprising the Property
      is
      located in an area identified by the Federal Emergency Management Agency as
      an
      area federally designated a "100 year flood plain" and (a) flood insurance
      is
      generally available at reasonable premiums and in such amount as generally
      required by Lender for similar properties or (b) if not so available from a
      private carrier, from the federal government at commercially reasonable premiums
      to the extent available.; (vi) a policy or endorsement covering against damage
      or loss from (A) sprinkler system leakage and (B) boilers, boiler tanks, HVAC
      systems, heating and air-conditioning equipment, pressure vessels, auxiliary
      piping, and similar apparatus, in an amount generally available at reasonable
      premiums and generally required by Lender for similar properties; (vii) during
      the period of any construction, repair, restoration, or replacement of the
      Property, a standard builder’s risk policy with extended coverage in an amount
      at least equal to the full replacement cost of such Property; and (viii) a
      policy or endorsement covering against damage or loss by earthquake in the
      amounts reasonably required by Lender; (ix) if the Property constitutes a legal
      non-conforming use, an ordinance of law coverage endorsement which contains
      coverage for the (A) undamaged portion of building, (B) demolition costs, and
      (C) increased cost of construction, covering the Property in an amount not
      less
      than coverage (A) value included to full building limit, and coverage (B) and
      (C) a combined per occurrence limit of not less than $25 million. “Full
      replacement cost”
shall
      mean an amount equal to one hundred percent (100%) of the actual replacement
      cost of each property without allowance for depreciation (exclusive of the
      cost
      of excavations, foundations, footings underground utilities, and value of land)
      subject to Borrower's best efforts to obtain such limits at commercially
      reasonable pricing as approved by Lender and Borrower. Full replacement cost
      will be determined, at Borrower’s expense, periodically (but at least once every
      three (3) years) by or for the insurance company conducted by an appraiser
      experienced in valuing properties of similar types, engineer, architect, or
      contractor acceptable to Lender.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)  Liability
      and Other Insurance. Borrower shall maintain or cause Manager to maintain
      commercial general liability insurance with per occurrence limits of $1,000,000,
      and a general aggregate limit of $2,000,000, with an excess/umbrella liability
      policy of not less than $10,000,000 per occurrence and annual aggregate covering
      Borrower, with Lender named as an additional insured, against claims for bodily
      injury or death or property damage occurring in, upon, or about the Property.
      In
      addition to any other requirements, such commercial general liability and
      excess/umbrella liability insurance shall provide insurance against acts of
      terrorism, or such coverages shall be provided by separate policies or
      endorsements. The insurance policies shall also include operations and blanket
      contractual liability coverage which insures contractual liability under the
      indemnifications set forth in Section 8.02 below (but such coverage or the
      amount thereof shall in no way limit such indemnifications). Upon request,
      Borrower shall or cause Manager to also carry additional insurance or additional
      amounts of insurance covering Borrower or the Property as Lender shall
      reasonably require with thirty (30) days written notice to Borrower.

     

    (c)  Form
      of
      Policy. All insurance required under this Section shall be fully paid for,
      non-assessable, and the policies shall contain such provisions, endorsements,
      and expiration dates as Lender shall reasonably require. The policies shall
      be
      issued by insurance companies authorized to do business in the Property State,
      approved by Lender, and must have and maintain a current financial strength
      rating of “A-, VII” (or higher) from A.M. Best or equivalent (or if a rating by
      A.M. Best is no longer available, a similar rating from a similar or successor
      service). In addition, all policies shall (i) include a standard mortgagee
      clause, without contribution, in the name of Lender, (ii) provide that they
      shall not be canceled, amended, or materially altered (including reduction
      in
      the scope or limits of coverage) without at least thirty (30) days’ prior
      written notice to Lender except in the event of cancellation for non-payment
      of
      premium, in which case only ten (10) days’ prior written notice will be given to
      Lender, and (iii) include a waiver of subrogation clause substantially
      equivalent to the following: “The Company may require from the Insured an
      assignment of all rights of recovery against any party for loss to the extent
      that payment therefor is made by the Company, but the Company shall not acquire
      any rights of recovery which the Insured has expressly waived prior to loss,
      nor
      shall such waiver affect the Insured’s rights under this policy”.

     

    (d)  Original
      Policies. Borrower shall deliver to Lender on or prior to the Closing Date
      and
      at the expiration date of the policy(ies) thereafter (i) certificates evidencing
      coverage under all policies (and renewals) required under this Section and
      (ii)
      satisfactory evidence of payment of all premiums on such policies If original
      and renewal policies are unavailable or if coverage is under a blanket policy,
      Borrower shall deliver to Lender certificates evidencing coverage under all
      policy(ies) required under this Section and, upon request of Lender, certified
      copies of the original policies.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e)  General
      Provisions. Borrower shall not carry separate or additional insurance concurrent
      in form or contributing in the event of loss with that required under this
      Section unless endorsed in favor of Lender as per this Section and approved
      by
      Lender in all respects. The insurance coverage required under this Section
      may
      be effected under a blanket policy(ies) covering the Property and other
      properties and assets not constituting a part of the Property; provided that
      any
      such blanket policy shall specify, except in the case of public liability
      insurance, the portion of the total coverage of such policy that is allocated
      to
      the Property, and any sublimits in such blanket policy applicable to the
      Property, which amounts shall not be less than amounts required pursuant to
      this
      Section and which shall in any case comply in all other respects with the
      requirements of this Section. No approval by Lender of any insurer shall be
      construed to be a representation, certification, or warranty of its solvency.
      No
      approval by Lender as to the amount, type, or form of any insurance shall be
      construed to be a representation, certification, or warranty of its sufficiency.
      Borrower shall comply with all insurance requirements and shall not cause or
      permit any condition to exist which would be prohibited by any insurance
      requirement or would invalidate the insurance coverage on the Property.

     

    (f)  Waiver
      of
      Subrogation. A waiver of subrogation shall be obtained by Borrower from its
      insurers and, consequently, Borrower for itself, and on behalf of its insurers,
      hereby waives and releases any and all right to claim or recover against Lender,
      its officers, employees, agents and representatives, for any loss of or damage
      to Borrower, other Persons, the Property, Borrower’s property or the property of
      other Persons from any cause required to be insured against by the provisions
      of
      this Instrument or otherwise insured against by Borrower.

     

    Section
      3.07  
      Damage and Destruction of Property

     

    (a)  Borrower’s
      Obligations. If any damage to, loss, or destruction of the Property occurs
      (any
“Damage”),
      (i)
      Borrower shall promptly notify Lender and take all necessary steps to preserve
      any undamaged part of the Property and (ii) if the insurance proceeds are made
      available for Restoration (defined below) (but regardless of whether any
      proceeds are sufficient for Restoration), Borrower shall promptly commence
      and
      diligently pursue to completion the restoration, replacement, and rebuilding
      of
      the Property as nearly as possible to its value and condition immediately prior
      to the Damage or a Taking (defined below) in accordance with plans and
      specifications approved by Lender (“Restoration”).
      Borrower shall comply with other reasonable requirements established by Lender
      to preserve the security under this Instrument.

     

    (b)  Lender’s
      Rights. If any Damage occurs and (i) the Restoration costs for which Damage
      equal or exceed $5,000,000 in Lender’s reasonable determination (“Major
      Restoration”)
      or
      (ii) at any time following an Event of Default under the Documents, and some
      or
      all of the Damage is covered by insurance, then (i) Lender may, but is not
      obligated to, make proof of loss if not made promptly by Borrower and Lender
      is
      authorized and empowered by Borrower to settle, adjust, or compromise any claims
      for the Damage; (ii) each insurance company concerned is authorized and directed
      to make payment directly to Lender for the Damage; and (iii) Lender may apply
      the insurance proceeds in any order it determines (1) to reimburse Lender for
      all Costs (defined below) related to collection of the proceeds and (2) subject
      to Section 3.07(c) and at Lender’s option, to (A) payment (without any
      Prepayment Premium) of all or part of the Obligations, whether or not then
      due
      and payable, in the order determined by Lender (provided that if any Obligations
      remain outstanding after this payment, the unpaid Obligations shall continue
      in
      full force and effect and Borrower shall not be excused in the payment thereof);
      (B) the cure of any default under the Documents; or (C) the Restoration. Any
      insurance proceeds held by Lender shall be held without the payment of interest
      thereon. If Borrower receives any insurance proceeds for the Damage which
      constitutes a Major Restoration, or promptly upon Lender’s request following on
      Event of Default under the Documents, Borrower shall promptly deliver the
      proceeds to Lender. Notwithstanding anything in this Instrument or at law or
      in
      equity to the contrary, none of the insurance proceeds paid to Lender shall
      be
      deemed trust funds and Lender may dispose of these proceeds as provided in
      this
      Section. Borrower expressly assumes all risk of loss from any Damage, whether
      or
      not insurable or insured against.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  Application
      of Proceeds to Restoration. All insurance proceeds received by Borrower either
      directly or through Lender shall be used and applied by Borrower in strict
      accordance with the requirements of this Instrument and the Documents.
      Notwithstanding anything to the contrary herein, if at any time (i) Lender
      reasonably determines Borrower has failed, for any reason, to use and apply
      any
      insurance proceeds in strict according with the Indenture or (ii) an Event
      of
      Default occurs under the Documents, then, at Lender’s sole election, Lender may
      exercise all rights set forth in this Instrument with respect to any and all
      Damage and insurance proceeds regardless of whether such Damage gives rise
      to a
      Major Restoration, as defined above. Lender shall make the Net Proceeds (defined
      below) available to Borrower for Restoration if: (i) there shall then be no
      Event of Default; (ii) Lender shall be satisfied, in its reasonable
      determination, that Restoration can and will be completed within one (1) year
      after the Damage occurs and at least one (1) year prior to the maturity of
      the
      Note and Leases which are terminated or terminable as a result of the Damage
      cover an aggregate of less than ten percent (10%) of the total rentable square
      footage contained in the Property at the closing of the Loan or such Tenants
      agree in writing to continue their Leases, as applicable; (iii) Borrower shall
      have entered into a general construction contract acceptable in all respects
      to
      Lender for Restoration, which contract must include provision for retainage
      of
      not less than ten percent (10%) until final completion of the Restoration;
      and
      (iv) in Lender’s reasonable judgment, after Restoration has been completed, the
      net cash flow of the Property will be sufficient to cover all costs and
      operating expenses of the Property, including payments due and reserves required
      under the Documents. Notwithstanding any provision of this Instrument to the
      contrary, Lender shall not be obligated to make any portion of the Net Proceeds
      available for Restoration unless, at the time of the disbursement request,
      Lender has determined in its reasonable discretion that (y) Restoration can
      be
      completed at a cost which does not exceed the aggregate of the remaining Net
      Proceeds and any funds deposited with Lender by Borrower (“Additional
      Funds”)
      and
      (z) the aggregate of any loss of rental income insurance proceeds which the
      carrier has acknowledged to be payable (“Rent
      Loss Proceeds”)
      and
      any funds deposited with Lender by Borrower are sufficient to cover all costs
      and operating expenses of the Property, including payments due and reserves
      required under the Documents.

     

    (d)  Disbursement
      of Proceeds. If Lender elects or is required to make insurance proceeds
      available for Restoration, Lender shall, through a disbursement procedure
      established by Lender, periodically make available to Borrower in installments
      the net amount of all insurance proceeds received by Lender after deduction
      of
      all costs and expenses incurred by Lender in connection with the collection
      and
      disbursement of such proceeds (“Net
      Proceeds”)
      and,
      if any, the Additional Funds. All insurance proceeds received directly by
      Borrower and all amounts periodically disbursed to Borrower by Lender shall
      be
      applied by Borrower to the amounts currently due under the construction contract
      for Restoration and Lender’s receipt of (i) appropriate lien waivers, (ii) a
      certification of the percentage of Restoration completed by an architect or
      engineer acceptable to Lender, and (iii) title insurance protection against
      materialmen’s and mechanic’s liens. At Lender’s election, the disbursement of
      funds may be handled by a disbursing agent selected by Lender, and such agent’s
      reasonable fees and expenses shall be paid by Borrower. The Net Proceeds, Rent
      Loss Proceeds, and any Additional Funds shall constitute additional security
      for
      the Loan and Borrower shall execute, deliver, file and/or record, at its
      expense, such instruments as Lender requires to grant to Lender a perfected,
      first-priority security interest in these funds. If the Net Proceeds are made
      available for Restoration and (x) Borrower refuses or fails to complete the
      Restoration, (y) an Event of Default occurs, or (z) the Net Proceeds or
      Additional Funds are not applied to Restoration, then any undisbursed portion
      may, at Lender’s option, be applied to the Obligations in any order of priority,
      and any application to principal shall be deemed a voluntary prepayment subject
      to the Prepayment Premium.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.08  
      Condemnation

     

    (a)  Borrower’s
      Obligations. Borrower will promptly notify Lender of any threatened or
      instituted proceedings for the condemnation or taking by eminent domain of
      the
      Property including any change in any street (whether as to grade, access, or
      otherwise)(a “Taking”).
      Borrower shall, at its expense, (i) diligently prosecute these proceedings,
      (ii)
      deliver to Lender copies of all papers served in connection therewith, and
      (iii)
      with respect to any condemnation in an amount equal to or greater than
      $5,000,000 ( “Major
      Condemnation”)
      and,
      upon Lender’s request, at any time following on Event of Default under the
      Documents, consult and cooperate with Lender in the handling of these
      proceedings. No settlement of any Major Condemnation or any proceeding following
      on Event of Default under the Documents shall be made by Borrower without
      Lender’s prior written consent, which consent shall not be unreasonably withheld
      or delayed. Lender may participate in the proceedings (but shall not be
      obligated to do so) respecting any Major Condemnation and respecting any Taking
      at any time following an Event of Default under the Documents, and Borrower
      will
      sign and deliver all instruments requested by Lender to permit this
      participation.

     

    (b)  Lender’s
      Rights to Proceeds. All condemnation awards, judgments, decrees, or proceeds
      of
      sale in lieu of condemnation (“Award”)
      are
      assigned and shall be paid to Lender. Borrower authorizes Lender to collect
      and
      receive them, to give receipts for them, to accept them in the amount received
      without question or appeal, and/or to appeal any judgment, decree, or award.
      Borrower will sign and deliver all instruments requested by Lender to permit
      these actions.

     

    (c)  Application
      of Award. Lender shall have the right to apply any Award, subject to Section
      3.08(d), as per Section 3.07 for insurance proceeds held by Lender, including
      the waiver of Prepayment Premium. If Borrower receives any Award, Borrower
      shall
      promptly deliver them to Lender. Notwithstanding anything in this Instrument
      or
      at law or in equity to the contrary, none of the Award paid to Lender shall
      be
      deemed trust funds and Lender may dispose of these proceeds as provided in
      this
      Section.

     

    (d)  Application
      of Award to Restoration. With respect to any portion of the Award that is not
      for loss of value or property, Lender shall permit the application of the Award
      to Restoration in accordance with the provisions of Section 3.07 if: (i) no
      more
      than (A) twenty percent (20%) of the gross area of the Improvements or (B)
      ten
      percent (10%) of the parking spaces is affected by the Taking or, if more than
      ten percent (10%) of the parking spaces is affected by the Taking, the parking
      nonetheless remains in compliance, in Lender’s reasonable determination, with
      all zoning codes, other governmental regulations, and applicable conditions,
      covenants, restrictions and/or easements affecting the Property; (ii) the amount
      of the loss does not exceed twenty percent (20%) of the original amount of
      the
      Note; (iii) the Taking does not affect access to the Property from any public
      right-of-way; (iv) there is no Event of Default at the time of application;
      (v)
      after Restoration, the Property and its use will be in compliance with all
      Laws;
      (vi) in Lender’s reasonable judgment, Restoration is practical and can be
      completed within one (1) year after the Taking and at least one (1) year prior
      to the maturity of the Note; and (vii) the Major Tenants (defined in Section
      3.21(c) below) agree in writing to continue their Leases without abatement
      of
      rent. Upon an Event of Default under the Documents or if any portion of the
      Award that is (i) for loss of value or property or (ii) in excess of the cost
      of
      any Restoration permitted above, Lender may, in its sole discretion, be applied
      against the Obligations or paid to Borrower.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e)  Effect
      on
      the Obligations. Notwithstanding any Taking, Borrower shall continue to pay
      and
      perform the Obligations as provided in the Documents. Any reduction in the
      Obligations due to application of the Award shall take effect only upon Lender’s
      actual receipt and application of the Award to the Obligations. If the Property
      shall have been foreclosed, sold pursuant to any power of sale granted
      hereunder, or transferred by deed-in-lieu of foreclosure prior to Lender’s
      actual receipt of the Award, Lender may apply the Award received to the extent
      of any deficiency upon such sale and Costs incurred by Lender in connection
      with
      such sale.

     

    Section
      3.09  
      Liens and Liabilities.
      Borrower shall pay, bond, or otherwise discharge all claims and demands of
      mechanics, materialman, laborers, and others which, if unpaid, might result
      in a
      lien or encumbrance on the Property or the Rents (collectively, “Liens”)
      and
      Borrower shall, at its sole expense, do everything necessary to preserve the
      lien and security interest created by this Instrument and its priority. Nothing
      in the Documents shall be deemed or construed as constituting the consent or
      request by Lender or Trustee, express or implied, to any contractor,
      subcontractor, laborer, mechanic or materialman for the performance of any
      labor
      or the furnishing of any material for any improvement, construction, alteration,
      or repair of the Property. Borrower further agrees that neither Lender nor
      Trustee stands in any fiduciary relationship to Borrower. All contributions
      made, directly or indirectly, to Borrower by or on behalf of any of its
      partners, members, principals or any party related to such parties shall be
      treated as equity and shall be subordinate and inferior to the rights of Lender
      under the Documents.

     

    Section
      3.10  
      Tax and Insurance Deposits.
      Upon
      Lender’s request, following an Event of Default under any Document, Borrower
      shall make monthly deposits (“Deposits”)
      with
      Lender equal to one-twelfth (1/12) of the annual Assessments (except for income
      taxes, franchise taxes, ground rents, maintenance charges and utility charges)
      and the premiums for insurance required under Section 3.06 (the “Insurance
      Premiums”)
      together with amounts sufficient to pay these items thirty (30) days before
      they
      are due (collectively, the “Impositions”).
      Lender shall estimate the amount of the Deposits until ascertainable. At that
      time, Borrower shall promptly deposit any deficiency. Borrower shall promptly
      notify Lender of any changes to the amounts, schedules and instructions for
      payment of the Impositions. Borrower authorizes Lender or its agent to obtain
      the bills for Assessments directly from the appropriate tax or governmental
      authority. All Deposits are pledged to Lender and shall constitute additional
      security for the Obligations. The Deposits shall be held by Lender without
      interest (except to the extent required under Laws) and may be commingled with
      other funds. If (i) there is no Event of Default at the time of payment, (ii)
      Borrower has delivered bills or invoices to Lender for the Impositions in
      sufficient time to pay them when due, (iii) the Deposits are sufficient to
      pay
      the Impositions or Borrower has deposited the necessary additional amount,
      then
      Lender shall pay the Impositions prior to their due date. Any Deposits remaining
      after payment of the Impositions shall, at Lender’s option, be credited against
      the Deposits required for the following year or paid to Borrower. If an Event
      of
      Default occurs, the Deposits may, at Lender’s option, be applied to the
      Obligations in any order of priority. Any application to principal shall be
      deemed a voluntary prepayment subject to the Prepayment Premium. Borrower shall
      not claim any credit against the principal and interest due under the Note
      for
      the Deposits. Upon an assignment or other transfer of this Instrument, Lender
      may pay over the Deposits in its possession to the assignee or transferee and
      then it shall be completely released from all liability with respect to the
      Deposits. Borrower shall look solely to the assignee or transferee with respect
      thereto. This provision shall apply to every transfer of the Deposits to a
      new
      assignee or transferee. Subject to Article V, a transfer of title to the
      Property shall automatically transfer to the new owner the beneficial interest
      in the Deposits. Upon full payment and satisfaction of this Instrument or,
      at
      Lender’s option, at any prior time, the balance of the Deposits in Lender’s
      possession shall be paid over to the record owner of the Land and no other
      party
      shall have any right or claim to the Deposits. Lender may transfer all its
      duties under this Section to such servicer or financial institution as Lender
      may periodically designate and Borrower agrees to make the Deposits to such
      servicer or institution.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.11  
      ERISA

     

    (a)  Borrower
      understands and acknowledges that, as of the date hereof, the source of funds
      from which Lender is extending the Loan will include one or more of the
      following accounts: (i) an “insurance company general account,” as that term is
      defined in Prohibited Transaction Class Exemption (“PTE”)
      95-60
      (60 Fed. Reg. 35925 (Jul. 12, 1995)), as to which Lender meets the conditions
      for relief in Sections I and IV of PTE 95-60; (ii) pooled and single client
      insurance company separate accounts, which are subject to the provisions of
      the
      Employee Retirement Income Security Act of 1974, as amended (“ERISA”); and (iii)
      one or more insurance company separate accounts maintained solely in connection
      with fixed contractual obligations of the insurance company, under which the
      amounts payable or credited to the plan are not affected in any manner by the
      investment performance of the separate account.

     

    (b)  Borrower
      represents and warrants to Lender that (i) Borrower is not an “employee benefit
      plan” as defined in Section 3(3) of ERISA, or a “governmental plan” within the
      meaning of Section 3(32) of ERISA; (ii) Borrower is not a “party in interest”,
      as defined in Section 3(14) of ERISA, other than as a service provider or an
      affiliate of a service provider, to any employee benefit plan that has invested
      in a separate account described in Section 3.11(a)(ii) above, from which funds
      have been derived to make the Documents, or if so, the execution of the
      Documents and making of the Loan thereunder do not constitute nonexempt
      prohibited transactions under ERISA; (iii) Borrower is not subject to state
      statutes regulating investments and fiduciary obligations with respect to
      governmental plans, or if subject to such statutes, is not in violation thereof
      in the execution of the Documents and the making of the Loan thereunder; (iv)
      the assets of the Borrower do not constitute “plan assets” of one or more plans
      within the meaning of 29 C.F.R. Section 2510.3-101; and (v) one or more of
      the
      following circumstances is true: (1) equity interests in Borrower are publicly
      offered securities, within the meaning of 29 C.F.R. Section 2510.3-101(b)(2);
      (2) less than twenty-five percent (25%) of all equity interests in Borrower
      are
      held by “benefit plan investors” within the meaning of 29 C.F.R. Section
      2510.3-101(f)(2); or (3) Borrower qualifies as an “operating company,” a
“venture capital operating company” or a “real estate operating company” within
      the meaning of 29 C.F.R. Section 2510.3-101(c), (d) or (e), respectively.

     

    (c)  Borrower
      shall deliver to Lender such certifications and/or other evidence periodically
      requested by Lender, in its sole discretion, to verify the representations
      and
      warranties in Section 3.11(b) above. Failure to deliver these certifications
      or
      evidence, breach of these representations and warranties, or consummation of
      any
      transaction which would cause this Instrument or any exercise of Lender’s rights
      under this Instrument to (i) constitute a non-exempt prohibited transaction
      under ERISA or (ii) violate ERISA or any state statute regulating governmental
      plans (collectively, a “Violation”), shall be an Event of Default.
      Notwithstanding anything in the Documents to the contrary, no sale, assignment,
      or transfer of any direct or indirect right, title, or interest in Borrower
      or
      the Property (including creation of a junior lien, encumbrance or leasehold
      interest) shall be permitted which would, in Lender’s opinion, negate Borrower’s
      representations in this Section or cause a Violation. At least fifteen (15)
      days
      before consummation of any of the foregoing, Borrower shall obtain from the
      proposed transferee or lienholder (i) a certification to Lender that the
      representations and warranties of this Section 3.11 will be true after
      consummation and (ii) an agreement to comply with this Section
      3.11.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.12  
      Environmental Representations, Warranties, and
      Covenants

     

    (a)  Environmental
      Representations and Warranties.
      Borrower represents and warrants, to the best of Borrower’s knowledge and
      additionally based upon the environmental site assessment report of the Property
      (the “Environmental
      Report”),
      that
      except as fully disclosed in the Environmental Report delivered to and approved
      by Lender prior to the date hereof: (i) there are no Hazardous Materials
      (defined below) or underground storage tanks affecting the Property
      (“affecting
      the Property”
shall
      mean “in, on, under, stored, used or migrating to or from the Property”) except
      for (A) routine office, cleaning, janitorial and other materials and supplies
      necessary to operate the Property for its current use and (B) Hazardous
      Materials that are (1) in compliance with Environmental Laws (defined below),
      (2) have all required permits, and (3) are in only the amounts necessary to
      operate the Property; (ii) there are no past, present or threatened Releases
      (defined below) of Hazardous Materials in violation of any Environmental Law
      affecting the Property; (iii) there is no past or present non-compliance with
      Environmental Laws or with permits issued pursuant thereto; (iv) Borrower does
      not know of, and has not received, any written or oral notice or communication
      from any person relating to Hazardous Materials affecting the Property; and
      (v)
      Borrower has provided to Lender, in writing, all information relating to
      environmental conditions affecting the Property known to Borrower or contained
      in Borrower’s files. “Environmental
      Law”
means
      any present and future federal, state and local laws, statutes, ordinances,
      rules, regulations, standards, policies and other government directives or
      requirements, as well as common law, that apply to Borrower or the Property
      and
      relate to Hazardous Materials including the Comprehensive Environmental
      Response, Compensation and Liability Act and the Resource Conservation and
      Recovery Act. “Hazardous
      Materials”
shall
      mean petroleum and petroleum products and compounds containing them, including
      gasoline, diesel fuel and oil; explosives, flammable materials; radioactive
      materials; polychlorinated biphenyls (“PCBs”)
      and
      compounds containing them; lead and lead-based paint; Microbial Matter,
      infectious substances, asbestos or asbestos-containing materials in any form
      that is or could become friable; underground or above-ground storage tanks,
      whether empty or containing any substance; any substance the presence of which
      on the Property is prohibited by any federal, state or local authority; any
      substance that requires special handling; and any other material or substance
      now or in the future defined as a “hazardous substance,” “hazardous material,”
“hazardous waste,” “toxic substance,” “toxic pollutant,” “contaminant,” or
“pollutant” within the meaning of any Environmental Law. “Release”
of
      any
      Hazardous Materials includes any release, deposit, discharge, emission, leaking,
      spilling, seeping, migrating, pumping, pouring, escaping, dumping, disposing
      or
      other movement of Hazardous Materials. “Microbial
      Matter”
shall
      mean the presence of fungi or bacterial matter which reproduces through the
      release of spores or the splitting of cells, including, but not limited to,
      mold, mildew and viruses, whether or not such Microbial Matter is
      living.

     

    (b)  Environmental
      Covenants.
      Borrower covenants and agrees that: (i) all use and operation of the Property
      shall be in compliance with all Environmental Laws and required permits; (ii)
      there shall be no Releases of Hazardous Materials affecting the Property; (iii)
      there shall be no Hazardous Materials affecting the Property except (A) routine
      office, cleaning and janitorial supplies, (B) in compliance with all
      Environmental Laws, (C) with all required permits, and (D) (1) in only the
      amounts necessary to operate the Property or (2) fully disclosed to and approved
      by Lender in writing; (iv) Borrower shall keep the Property free and clear
      of
      all liens and encumbrances imposed by any Environmental Laws due to any act
      or
      omission by Borrower or any person (the “Environmental
      Liens”);
      (v)
      Borrower shall, at its sole expense, fully and expeditiously cooperate in all
      activities in Section 3.12(c) including providing all relevant information
      and
      making knowledgeable persons available for interviews; (vi) Borrower shall,
      at
      its sole expense, (A) perform any environmental site assessment or other
      investigation of environmental conditions at the Property upon Lender’s request
      based on Lender’s reasonable belief that the Property is not in compliance with
      all Environmental Laws, (B) share with Lender the results and reports and Lender
      and the Indemnified Parties (defined below) shall be entitled to rely on such
      results and reports, and (C) complete any remediation of Hazardous Materials
      affecting the Property or other actions required by any Environmental Laws;
      (vii) Borrower shall not allow any Tenant or other user of the Property to
      violate any Environmental Law; (viii) Borrower shall promptly notify Lender
      in
      writing after it becomes aware of (A) the presence, Release, or threatened
      Release of Hazardous Materials affecting the Property, (B) any non-compliance
      of
      the Property with any Environmental Laws, (C) any actual or potential
      Environmental Lien, (D) any required or proposed remediation of environmental
      conditions relating to the Property, or (E) any written or oral communication
      or
      notice from any person relating to Hazardous Materials, and (ix) if at any
      time
      Lender reasonably requires any or all of an Asbestos Operation and Maintenance
      Plan, Lead Paint Abatement Plan, Storage Tank Closure and Removal Plan, Mold
      Operation and Maintenance Plan, and any other Operation and Maintenance Plan
      (collectively, the “O&M
      Plan”)
      be in
      effect (or required to be implemented by Lender), then Borrower shall, at its
      sole expense, implement, continue, and complete, as applicable, the O&M Plan
      (with any modifications required to comply with applicable Laws) until payment
      and full satisfaction of the Obligations. While any portion of the Loan is
      outstanding, upon the request of Lender, which request shall be made upon
      Lender’s reasonable determination that the governing law or applicable facts or
      circumstances respecting the Property warrant updated lead paint, asbestos,
      tank
      and/or mold survey(s) of the Property, at Borrower’s sole cost and expense,
      Borrower shall conduct such updated survey(s) of the Property. Each such survey
      shall be conducted by a consultant reasonably acceptable to Lender who shall
      determine the condition of the lead paint, asbestos, tank and/or mold at the
      Property, and whether the applicable O&M Plan should be revised or any other
      measures taken to ensure the continued safe condition of the Property. Borrower
      shall deliver to Lender a copy of such survey and shall enter into the revised
      O&M Plan, and Borrower shall certify to Lender in writing, no later than
      thirty (30) days after Borrower’s receipt of such survey, that Borrower has
      complied with all of the recommendations of the consultant contained in the
      survey and the revised O&M Plan. Any failure of Borrower to perform its
      obligations under this Section 3.12 shall constitute bad faith waste of the
      Property.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  Lender’s
      Rights.
      Lender
      and any person designated by Lender may enter the Property to assess the
      environmental condition of the Property and its use including (i) conducting
      any
      environmental assessment or audit (the scope of which shall be determined by
      Lender) and (ii) taking samples of soil, groundwater or other water, air, or
      building materials, and conducting other invasive testing at all reasonable
      times when (A) an Event of Default has occurred and is continuing under the
      Documents, (B) Lender reasonably believes that a Release has occurred or the
      Property is not in compliance with all Environmental Laws, or (C) the Loan
      is
      being considered for sale. Borrower shall cooperate with and provide access
      to
      Lender and such person, and Lender shall endeavor to conduct such entry,
      inspections and tests in a manner that shall not unreasonably interfere with
      the
      operation of the Property. 

     

    Section
      3.13  
      Electronic Payments.
      Unless
      directed otherwise in writing by Lender, all payments due under the Loan
      Documents shall be paid, at Borrower’s option, either (i) by wire transfer
      to the loan servicing account or accounts selected by Lender, or (ii) by
      Electronic Fund Transfer debit entries to Borrower’s account at an Automated
      Clearing House member bank satisfactory to Lender or by similar electronic
      transfer process selected by Lender. If Borrower elects to pay by Electronic
      Fund Transfer, the following additional provisions shall apply: (a) each
      payment due under the Documents shall be initiated by Lender through the
      Automated Clearing House network (or similar electronic process) for settlement
      on the due date for the payment, (b)  Borrower shall, at Borrower’s sole
      cost and expense, direct its bank in writing to permit such Electronic Fund
      Transfer debit entries (or similar electronic transfer) to be made by Lender,
      (c) prior to each payment due date under the Loan Documents, Borrower shall
      deposit and/or maintain sufficient funds in Borrower’s account to cover each
      debit entry, and (d) any charges or costs, if any, by Borrower’s bank for
      the foregoing shall be paid by Borrower.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.14  
      Inspection.
      Borrower shall allow Lender and any person designated by Lender to enter upon
      the Property and conduct tests or inspect the Property at all reasonable times.
      Borrower shall assist Lender and such person in effecting said inspection,
      and
      Lender shall endeavor to conduct such entry, inspections and tests in a manner
      that shall not unreasonably interfere with the operation of the Property.

     

    Section
      3.15  
      Records, Reports, and Audits

     

    (a)  Records
      and Reports.
      Borrower shall maintain complete and accurate books and records with respect
      to
      all operations of or transactions involving the Property. Annually, Borrower
      shall furnish Lender financial statements (which financial statements may be
      consolidated statements, provided they set forth the financial condition of
      Borrower and the operating information of the Property in detail reasonably
      satisfactory to Lender) for the most current fiscal year (including a schedule
      of all related Obligations and contingent liabilities) for (i) Borrower, (ii)
      any general partner of Borrower, (iii) the Guarantors and any other guarantors
      or sureties (if any) of the Note, to the extent not readily available in the
      public domain, and (iv) any Major Tenants, to the extent available through
      commercially reasonable efforts by Borrower. Annually (or quarterly upon
      Lender’s reasonable request), Borrower shall furnish Lender (i) operating
      statements showing cash flow and capital expenditures for the Property including
      income and expenses (before and after Obligations service), major capital
      improvements, a schedule showing tenant
      sales and percentage rent for retail properties where sales are reported, and
      the average daily rate and average daily occupancy for hotel
      properties;
      (ii)
      copies of paid tax receipts for the Property; (iii) a certified rent roll
      including security deposits held, the expiration of the terms of the Leases,
      and
      identification and explanation of any Tenants in default; (iv) a budget showing
      projected income and expenses (before and after Obligations service) for the
      next twelve (12) month budget period; (v) any
      appraisals of the Property performed during the previous year, and
      (vi)
      upon Lender’s request, (A) a schedule showing the Borrower’s tax basis in the
      Property, (B) the distribution of economic interests in the Property, and (C)
      copies of any other loan documents affecting the Property. 

     

    (b)  Delivery
      of Reports.
      All of
      the reports, statements, and items required under this Section shall be (i)
      certified as being true, correct, and accurate by an authorized person, partner,
      or officer of the delivering party or, at the deliverer’s option, audited by a
      Certified Public Accountant; (ii) satisfactory to Lender in form and substance;
      and (iii) delivered within (A) sixty (60) days after the end of Borrower’s
      fiscal year for annual reports and (B) thirty (30) days after the end of each
      calendar quarter for quarterly reports (if any are reasonably requested by
      Lender). If any one report, statement, or item is not received by Lender on
      its
      due date, a late fee of Five Hundred and No/100 Dollars ($500.00) per month
      shall be due and payable by Borrower. If any one report, statement, or item
      is
      not received by Lender on or before its due date, and Borrower fails to deliver
      the same to Lender within five (5) Business Days following Lender’s written
      request therefore, then Lender may immediately declare an Event of Default
      under
      the Documents. Borrower shall (i) provide Lender with such additional financial,
      management, or other information regarding Borrower, any general partner of
      Borrower, or the Property, as Lender may reasonably request and (ii) upon
      Lender’s request, deliver all items required by Section 3.15 in an electronic
      format (i.e. on computer disks) or by electronic transmission acceptable to
      Lender. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  Inspection
      of Records.
      Borrower shall allow Lender or any person designated by Lender to examine,
      audit, and make copies of all such books and records and all supporting data
      at
      the place where these items are located at all reasonable times after reasonable
      advance notice; provided that no notice shall be required after any Event of
      Default has occurred under the Documents and during the continuance thereof.
      Borrower shall assist Lender in effecting such examination. Upon five (5) days’
prior notice, Lender may inspect and make copies of Borrower’s or any manager or
      managing member of Borrower’s income tax returns with respect to the Property
      for the purpose of verifying any items referenced in this Section.

     

    Section
      3.16  
      Borrower’s Certificates.
      Within
      ten (10) days after Lender’s request, Borrower shall furnish a written
      certification to Lender and any Investors (defined below) as to (a) the amount
      of the Obligations outstanding; (b) the interest rate, terms of payment, and
      maturity date of the Note; (c) the date to which payments have been paid under
      the Note; (d) whether any offsets or defenses exist against the Obligations
      and
      a detailed description of any listed; (e) whether all Leases are in full force
      and effect and have not been modified (or if modified, setting forth all
      modifications); (f) the date to which the Rents have been paid; (g) whether,
      to
      the best knowledge of Borrower, any defaults exist under the Leases and a
      detailed description of any listed; (h) the security deposit held by Borrower
      under each Lease and that such amount is the amount required under such Lease;
      (i) whether there are any Events of Default (or events which with the passage
      of
      time and/or notice would constitute an Event of Default) under the Documents
      and
      a detailed description of any listed; (j) whether the Documents are in full
      force and effect; and (k) any other matters reasonably requested by Lender
      related to the Leases, the Obligations, the Property, or the Documents. For
      all
      non-residential properties and promptly upon Lender’s request, Borrower shall
      use its best efforts to deliver a written certification to Lender and Investors
      from Tenants specified by Lender that: (a) their Leases are in full force and
      effect; (b) there are no defaults (or events which with the passage of time
      and/or notice would constitute a default) under their Leases or a detailed
      description of any listed; (c) none of the Rents have been paid more than one
      month in advance; (d) there are no offsets or defenses against the Rents or
      a
      detailed description of any listed; and (e) any other matters reasonably
      requested by Lender related to the Leases; provided, however, that Borrower
      shall not have to pay money to a Tenant to obtain such certification, but it
      will deliver a landlord’s certification for any certification it cannot
      obtain.

     

    Section
      3.17  
      Full Performance Required; Survival of Warranties.
      All
      representations and warranties of Borrower in that certain First Mortgage Loan
      Application between Lender and Borrower dated February 10, 2006 or made in
      connection with the Loan shall survive the execution and delivery of the
      Documents and shall remain continuing warranties, and representations of
      Borrower. 

     

    Section
      3.18  
      Additional Security.
      No
      other security now existing or taken later to secure the Obligations shall
      be
      affected by the execution of the Documents and all additional security shall
      be
      held as cumulative. The taking of additional security, execution of partial
      releases, or extension of the time of payment obligations of Borrower shall
      not
      diminish the effect and lien of this Instrument and shall not affect the
      liability or obligations of any maker or guarantor. Neither the acceptance
      of
      the Documents nor their enforcement shall prejudice or affect Lender’s or
      Trustee’s right to realize upon or enforce any other security now or later held
      by Lender or Trustee. Lender and/or Trustee may enforce the Documents or any
      other security in such order and manner as it/either of them may determine
      in
      its/their discretion.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.19  
      Further Acts.
      Borrower shall take all necessary actions to (i) keep valid and effective the
      lien and rights of Lender and Trustee under the Documents and (ii) protect
      the
      lawful owner of the Documents. Promptly upon request by Lender or Trustee,
      and
      at Borrower’s sole expense, Borrower shall execute additional instruments and
      take such actions as Lender and/or Trustee reasonably believes are necessary
      or
      desirable to (a) maintain or grant Lender and Trustee a first-priority,
      perfected lien on the Property, (b) grant to Lender and Trustee, to the fullest
      extent permitted by Laws, the right to foreclose on, or transfer title to,
      the
      Property non-judicially, (c) correct any error or omission in the Documents,
      and
      (d) effect the intent of the Documents, including filing/recording the
      Documents, additional mortgages, or deeds of trust, financing statements, and
      other instruments.

     

    Section
      3.20  
      Capital Lease.
      Borrower shall not, without first obtaining Lender’s written consent in each
      case, enter into any lease for capital goods and/or equipment (each, a “Capital
      Lease”) that, when aggregated with all other Capital Leases for the Property,
      covers goods and/or equipment, which, if purchased, would exceed $1,000,000.00
      in value.

     

    Section
      3.21  
      Other Leases.
      

     

    (a)  With
      respect to all leases of the Property other than the Operating Lease and
      occupancy agreements respecting guest rooms (such leases shall collectively
      be
      referred to herein as “Leases”), Borrower may do the following without Lender’s
      consent, provided Borrower delivers prior written notices thereof to Lender:
      

     

    (i)  terminate
      any Lease (other than the Lease of a Major Tenant); (ii) Borrower may amend
      any
      Lease (other than the Lease of a Major Tenant); and (iii) Borrower may enter
      into new Leases (or extend or renew existing Leases) with third-party tenants
      for premises of 10,000 square feet or less provided each Lease (x) satisfies
      the
      minimum leasing requirements in this Section 3.21(b), and (z) does not give
      the
      tenant any rights (whether in the form of expansion rights, purchase rights,
      rights of first refusal to lease or purchase, or otherwise) relating to property
      which is not part of the Property and/or would require Borrower and/or Lender
      to
      possess or control any property (other than the Property) to honor such rights.
      Except as expressly provided in this Section 3.21(a) (or after obtaining
      Lender's prior written consent), Borrower shall not (1) amend or modify any
      Lease, (2) extend or renew (except in accordance with the existing Lease
      provisions, if any) any Lease (3) terminate or accept the surrender of any
      Lease, (4) enter into any new Lease of the Property, or (5) accept any
      prepayment of rent, termination fee, or any similar payment.

     

    (b)  Minimum
      Leasing Requirements: 

     

    (i)  All
      Leases shall be third-party, arm's-length leases.

     

    (ii)  All
      Leases shall satisfy the conditions, standards and requirements under the
      applicable Hotel Management Agreement which shall mean collectively, the
      Management Agreement dated September 27, 2001, Owner Agreement dated September
      27, 2001 and Recognition Agreement dated April 3, 2006 respecting the Property,
      referred to herein as the “Management
      Agreement”;
      the
      applicable Hotel Franchise Agreement, which shall mean any hotel franchise
      agreement, whether evidenced in a separate franchise agreement or as part of
      a
      Management Agreement affecting the Property and any related software and/or
      hardware licensing, communications and technical support agreements, referred
      to
      herein collectively as the “Hotel
      Franchise Agreement”;
      and
      the Operating Lease.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  The
      tenants under any and all Leases for space consisting of over 10,000 square
      feet
      of rentable area shall be referred to herein as “Major
      Tenants”.

     

    (d)  No
      portion of the Property shall be leased to a dry cleaner that uses dry cleaning
      solvents on the Property.

     

    Section
      3.22  
      Inventory Levels.
      At all
      times during the term of the Loan, Borrower shall maintain (or cause the
      Operating Lessee to maintain and to pledge the same in full to Lender) inventory
      levels of linens; tableware; kitchen utensils and equipment; and tables, chairs
      and equipment for the Property, which are appropriate for a hotel similar to
      the
      hotel situate on the Property and located in such hotel’s market, as determined
      by Lender in its reasonable judgment, but in no event less than the levels
      required pursuant to the Management Agreement and the Hotel Franchise Agreement
      (if any) respecting the Property.

     

    Section
      3.23  
      Single Purpose Entity.
      Borrower hereby represents, warrants and covenants to Lender that Borrower
      is a
      single-purpose entity whose sole asset is the Property, and whose sole business
      and purpose is to acquire, refurbish, operate, lease, maintain, market, finance,
      sell and otherwise use the Property, and uses incidental thereto. Borrower
      covenants and agrees that, until payment in full of the Obligations, Borrower
      will not, directly or indirectly, take any actions in violation of the
      formation documents or that would otherwise adversely affect the Borrower’s
      existence as a single purpose entity. Specifically, except only to the extent
      required or permitted by the Documents, Borrower has not and shall not do,
      cause, or permit any of the following: (a) engage in any business or activity
      other than to own, operate, finance, develop, manage, lease, maintain, market
      and sell the Property and activities incidental thereto; (b) acquire or own
      any
      material assets other than the Property; (c) except as otherwise permitted
      in
      Article V of this Instrument, merge into or consolidate with any Person or
      dissolve, terminate or liquidate in whole or in part, transfer or otherwise
      dispose of all or substantially all of its assets or change its legal structure,
      without in each case Lender’s consent; (e) make any investment in any Person
      without the consent of Lender; (f) commingle its assets with the assets of
      any
      affiliate of Borrower or any other Person; (g) incur any debt, secured or
      unsecured, direct or contingent (including guaranteeing any obligation), other
      than in the ordinary course of operating the Property, except as provided
      herein; (h) fail to maintain its records, books of account and bank accounts
      separate and apart from those of the affiliates of Borrower or any other Person;
      (i) hold itself out to be responsible for the debts of another Person, except
      as
      provided in the Documents; (j) make any loans or advances to any third party,
      including any affiliate of Borrower, except for distributions; (k) fail to
      file
      its own tax returns or file on a consolidated basis; (l) fail either to hold
      itself out to the public as a legal entity separate and distinct from any other
      Person or to conduct its business solely in its own name in order not
      (i) to mislead others as to the identity with which such other party
      is transacting business, or (ii) to suggest that Borrower is
      responsible for the debts of any third party (including any affiliate of
      Borrower); (m) file or consent to the filing of any petition, either voluntary
      or involuntary, to take advantage of any applicable insolvency, bankruptcy,
      liquidation or reorganization statute, or make an assignment for the benefit
      of
      creditors; (n) share any common logo with or hold itself out as or be considered
      as a department or division of (i) any affiliate of Borrower or
      (ii) any other Person or entity; (o) fail to preserve its existence as an
      entity duly organized, validly existing and in good standing (if applicable)
      under the laws of the jurisdiction of its organization or formation, and
      qualification to do business in the states where the Property is located, if
      applicable, or without the prior written consent of Lender, amend, modify or
      fail to comply with (in any material respect), or terminate the provisions
      of
      the formation documents or similar organizational documents, as the case may
      be;
      (p) fail to pay its debts and liabilities from, and to the extent of, its assets
      as the same shall become due and payable; (q) transact any business with
      affiliates, except on an arm’s-length basis and pursuant to written agreements
      that are terminable at will without the payment of a fee (except as otherwise
      approved by Lender); and (r) fail to maintain adequate capital to the extent
      available from revenues for the normal obligations reasonably foreseeable in
      a
      business of its size and character and in light of its contemplated business
      operations.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IV  -
      ADDITIONAL ADVANCES; EXPENSES; SUBROGATION

     

    Section
      4.01  
      Expenses and Advances.
      Borrower shall pay all reasonable appraisal, recording, filing, registration,
      brokerage, abstract, title insurance (including premiums), title searches and
      examinations, surveys and similar data and assurances with respect to title,
      UCC
      search, escrow, attorneys’ (both in-house staff and retained attorneys),
      engineers’, environmental engineers’, environmental testing, and architects’
fees, costs (including travel), expenses, and disbursements incurred by Borrower
      or Lender and reasonable fees charged by Lender or Trustee in connection with
      the granting, closing, servicing, and enforcement of (a) the Loan and Documents
      or (b) attributable to Borrower as owner of the Property. The term “Costs”
shall
      mean any of the foregoing incurred in connection with (a) any default by
      Borrower under the Documents, (b) the servicing of the Loan, or (c) the
      exercise, enforcement, compromise, defense, litigation, or settlement of any
      of
      Lender’s and Trustee’s rights or remedies under the Documents or relating to the
      Loan or the Obligations. If Borrower fails to pay any amounts or perform any
      actions required under the Documents, Lender or Trustee may (but shall not
      be
      obligated to) advance sums to pay such amounts or perform such actions. Borrower
      grants Lender or Trustee the right to enter upon and take possession of the
      Property to prevent or remedy any such failure and the right to take such
      actions in Borrower’s name. No advance or performance shall be deemed to have
      cured a default by Borrower. All (a) sums advanced by or payable to Lender
      or
      Trustee per this Section or under applicable Laws, (b) except as expressly
      provided in the Documents, payments due under the Documents which are not paid
      in full when due, and (c) all Costs, shall: (i) be deemed demand obligations,
      (ii) bear interest at the applicable interest rate specified in the Note, which
      shall be the Default Rate unless prohibited by Laws, until paid if not paid
      on
      demand, (iii) be part of, together with such interest, the Obligations , and
      (iv) be secured by the Documents. Lender or Trustee, upon making any such
      advance, shall also be subrogated to rights of the person receiving such
      advance.

     

    Section
      4.02  
      Subrogation.
      If any
      proceeds of the Note were used to extinguish, extend or renew any indebtedness
      on the Property, then, to the extent of the funds so used, (a) Lender and
      Trustee shall be subrogated to all rights, claims, liens, titles and interests
      existing on the Property held by the holder of such indebtedness and (b) these
      rights, claims, liens, titles and interests are not waived but rather shall
      (i)
      continue in full force and effect in favor of Lender and Trustee and (ii) are
      merged with the lien and security interest created by the Documents as
      cumulative security for the payment and performance of the
      Obligations.

     

    ARTICLE
      V  -
      SALE, TRANSFER, OR ENCUMBRANCE OF THE PROPERTY

     

    Section
      5.01  
      Due-on-Sale or Encumbrance.
      It shall
      be an Event of Default and, at the sole option of Lender, Lender may accelerate
      the Obligations and the entire Obligations (including the Prepayment Premium)
      shall become immediately due and payable, if, without Lender’s prior written
      consent (which may be withheld for any or no reason, including the possibility
      of an ERISA violation or the proposed transferee’s failure to agree in writing
      to Lender increasing the interest payable on the Obligations to any rate,
      changing any other terms (including maturity) of the Obligations or Documents,
      or requiring the payment of a transfer fee) any of the following shall
      occur:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a)  Borrower
      shall sell, convey, assign, transfer, dispose of or be divested of its title
      to,
      convey security title to the Property, mortgage, encumber or cause to be
      encumbered (except for the imposition of mechanics’ or materialmens’ liens) the
      Property or any interest therein, in any manner or way, whether voluntary or
      involuntary (except only as expressly permitted pursuant to the One-Time
      Transfer provision set forth in Section 13 of the Note); or 

     

    (b)  in
      the
      event of any merger, consolidation, sale, transfer, assignment, or dissolution
      involving all or substantially all of the assets of Borrower, or any general
      partner of Borrower, except only in connection with a Permitted Transfer
      (defined in Section 5.02 below) or a One Time Transfer pursuant to Section
      13 of
      the Note; or

     

    (c)  in
      the
      event of the assignment, transfer, pledge, voluntary or involuntary sale, or
      encumbrance (or any of the foregoing at one time or over any period of time),
      except only in connection with a Permitted Transfer or Permitted Admission
      (as
      defined in Section 5.03 below), of:

     

    (i)  of
      (1)
      the ownership interests in Borrower, regardless of the type or form of entity
      of
      Borrower, (2) the voting stock or ownership interest of any corporation or
      limited liability company which is, respectively, general partner or managing
      member of Borrower or any corporation or limited liability company directly
      or
      indirectly owning any such corporation or limited liability company, (3) the
      ownership interests of any owner of the beneficial interests of Borrower if
      Borrower is a trust; or

     

    (ii)  any
      general partner’s interest in (1) Borrower, (2) a partnership that is in
      Borrower's chain of ownership and which is derivatively liable for the
      obligations of Borrower, or (3) any general partner that has the legal
      right to participate directly or indirectly in the control of the management
      or
      operations of Borrower; or

     

    (d)  in
      the
      event of the conversion of any general partnership interest in Borrower to
      a
      limited partnership interest, if Borrower is a partnership; or

     

    (e)  in
      the
      event of any change, removal, or resignation of any general partner of Borrower;
      if Borrower is a partnership; or

     

    (f)  in
      the
      event of any change, removal, addition or resignation of a managing member
      (or
      if no managing member, any member) if Borrower is a limited liability company;
      or

     

    (g)  shall
      obtain any unsecured debt except for customary and reasonable short-term trade
      payables obtained and repaid in the ordinary course of business. 

     

    Section
      5.02  
      Permitted Transfer.
      Notwithstanding the terms and conditions of Section 5.01, provided Borrower
      satisfies each and all of the Transfer Conditions (defined below), the following
      transfers shall be deemed “Permitted
      Transfers”
      and
      Borrower shall not be required to obtain Lender’s prior written consent to such
      transfers: (i) a transfer made in accordance with the buy-sell provisions of
      the
      Limited partnership Agreement of CNL HHC Partners, LP, provided the transferee
      shall be CNL (defined below), HHC (defined below), or a CNL/HHC Affiliate
      (defined below) and provided that upon giving effect to the transfer the
      Borrower shall continue to be a CNL/HHC Affiliate; (ii) a transfer of direct
      or
      indirect interests in Borrower or in any entity owning a direct or indirect
      interest in Borrower; provided the transferee shall be a CNL/HHC Affiliate
      and
      provided that upon giving effect to the transfer the Borrower shall continue
      to
      be a CNL/HHC Affiliate; (iii) a transfer of direct or indirect interests in
      CNL
      or HHC in connection with a public offering or a “privatization,” provided that
      upon giving effect to the transfer the Borrower shall continue to be a CNL/HHC
      Affiliate, and (iv) a transfer of direct or indirect interests in CNL or HHC
      Partners in connection with a publicly traded stock or any public offering
      of
      equity ownership interests, provided that upon giving effect to the transfer
      the
      Borrower shall continue to be a CNL/HHC Affiliate.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    For
      purposes hereof, the term “Transfer
      Conditions”
      means:
      (1)
      there
      shall be no material adverse change in the financial condition of Borrower
      or
      any Key Party (defined below) as a result of the transfer, (2) for each transfer
      made pursuant to (i), and (ii) above, or by CNL pursuant to (iii) above in
      a
      listing on a national stock exchange, not less than thirty (30) days prior
      to
      the transfer, Borrower shall deliver to Lender (a) a written notice of the
      subject transfer, including a representation and warranty that the transfer
      satisfies the requirements of this Section, and (b) copies of all applicable
      amendments to the organization documents of Borrower or any Key Party that
      is
      the subject of the transfer, if any; (3) the Loan is current and there exists
      no
      Event of Default under any Document, except only a non-monetary default that
      shall be fully cured immediately upon the consummation of the transfer
      contemplated herein, and there exists no other event, which, with the giving
      of
      notice or the passage of time or both, would constitute an Event of Default
      under the Documents; (4) Borrower pays Lender a fee equal to $10,000 for each
      transfer made pursuant to (i), (ii), or (iii) above, and (5) Borrower pays
      all
      third-party costs (including reasonable outside attorneys’ fees) incurred by
      Lender relating to the transfer transaction, if any.

     

    For
      purposes hereof, the term “CNL”
      shall
      mean CNL Hotels & Resorts, Inc.

     

    For
      purposes hereof, the term “HHC”
      shall
      mean Hilton Hotel Corporation.

     

    For
      purposes hereof, the term “CNL/HHC
      Affiliate”
      shall
      mean an entity in which (a) CNL and/or HHC owns 100% ownership interest,
      directly or indirectly, and
      (b) CNL
      and/or HHC manages and
      controls, directly or indirectly, affairs and decisions of the CNL/HHC
      Affiliate, including, without limitation, the day-to-day
      and major/strategic management, business, operations, accounting and investment
      affairs and decisions.

     

    For
      purposes hereof, the term “Key
      Party”
      shall
      mean Borrower, any general partner or managing member of Borrower, any general
      partner or managing member of any general partner or managing member of
      Borrower, Guarantor, Manager (or other manager) under the Management Agreement,
      and Operating Lessee (or other tenant) under the Operating Lease.

     

    Section
      5.03  
      Permitted Admission.
      Notwithstanding the terms and conditions of Section 5.01, provided Borrower
      satisfies each and all of the Admission Conditions (defined below), the
      following shall be deemed a “Permitted
      Admission”:
      the
      admission of any person or entity that is not CNL, HHC or a CNL/HHC Affiliate
      into CNL HHC Partners, LP or into any entity that has a direct or indirect
      interests in CNL HHC Partners, LP in connection with a publicly traded stock
      transaction or any public or private offering of equity ownership interests,
      provided that upon giving effect to the admission, HHC, CNL or CNL/HHC Affiliate
      shall own a majority interest, directly or indirectly, in Borrower and all
      Key
      Parties and HHC, CNL or CNL/HHC Affiliate shall manage and
      control,
      directly or indirectly, the affairs and decisions of Borrower and all Key
      Parties, including, without limitation, the day-to-day and major/strategic
      management, business, operations, accounting and investment affairs and
      decisions (without limiting the generality of the foregoing, the admitted party
      may have consent rights over new or “elective” transactions, which consent
      rights shall not pertain to the operation of the Property or any rights, duties,
      or obligations under the Documents). 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    For
      purposes hereof, the term “Admission
      Conditions”
      means:
      (1)
      there
      shall be no material adverse change in the financial condition Borrower or
      any
      Key Party as a result of the admission, (2) the admitted party is a Person
      which
      has financial capability, creditworthiness, and reputation reasonably approved
      by Lender, (3) not less than thirty (30) days prior to the admission,
      Borrower shall deliver to Lender (a) a written notice of the subject admission,
      and (b) copies of all applicable amendments to the organization documents of
      Borrower or any Key Party that is the subject of the admission, if any; (4)
      the
      Loan is current, there exists no Event of Default under any Document except
      only
      a non-monetary Event of Default that shall be fully cured immediately upon
      the
      consummation of the admission contemplated in this section, and there exists
      no
      other event, which, with the giving of notice or the passage of time or both,
      would constitute an Event of Default under the Documents, except only an event
      that shall be fully remedied or cured immediately upon the consummation of
      the
      admission contemplated in this section; (5) Borrower pays Lender a fee equal
      to
      $20,000 for each admission, and (6) Borrower pays all third-party costs incurred
      by Lender relating to the admission transaction, if any.

     

    ARTICLE
      VI  -
      DEFAULTS AND REMEDIES

     

    Section
      6.01  
      Events of Default The following shall be an “Event of
      Default”:

     

    (a)  any
      payment required under any of the Documents is not made when due and such
      failure continues for five (5) days after written notice from Lender; provided,
      however, that if Lender gives one (1) notice of a monetary default within any
      twelve (12) month period, Borrower shall have no further right to any notice
      of
      monetary default during that twelve (12) month period; 

     

    (b)  except
      for defaults listed in the other subsections of this Section 6.01, any failure
      to perform or comply for any reason with any other provision contained in any
      of
      the Documents and such failure is not cured within the applicable grace period
      in that document (if any), or if no grace period is provided in that document,
      within thirty (30) days of Lender providing written notice thereof (the
“Grace
      Period”);
      provided, however, the Grace Period shall be extended for up to an additional
      sixty (60) days (for a total of ninety (90) days from the date of default)
      if
      (i) a cure is immediately commenced and diligently pursued, and Borrower
      delivers (within the Grace Period) to Lender a written request for more time
      to
      cure and (ii) Lender determines in good faith that (1) such default cannot
      be
      cured within the Grace Period but can be cured within ninety (90) days after
      the
      default, (2) no lien or security interest created by the Documents will be
      impaired prior to completion of such cure, and (3) Lender’s or Trustee’s
      immediate exercise of any remedies provided hereunder or by law is not necessary
      for the protection or preservation of the Property or Lender’s security interest
      ;

     

    (c)  if
      any
      representation made (i) in connection with the Loan or Obligations or (ii)
      in
      the Loan application executed by Borrower in connection with the Loan or in
      any
      Documents shall be false or misleading in any material respect; 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)  if
      any
      default under Article V occurs;

     

    (e)  if
      any
      Borrower under the Documents shall (i) become insolvent, (ii) make a transfer
      in
      fraud of creditors, (iii) make an assignment for the benefit of its creditors,
      (iv) not be able to pay its debts as such debts become due, or (v) admit in
      writing its inability to pay its debts as they become due;

     

    (f)  if
      any
      bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding,
      or any other proceedings for the relief of debtors, is instituted by or against
      Borrower, and, if instituted against Borrower, is allowed, consented to, or
      not
      dismissed within the earlier to occur of (i) ninety (90) days after such
      institution or (ii) the filing of an order for relief; 

     

    (g)  if
      any of
      the events in Sections 6.01 (e) or (f) shall occur with respect to any (i)
      managing member of Borrower, (ii) general partner of Borrower, or (iii)
      guarantor of payment or performance of any of the Obligations;

     

    (h)  if
      the
      Property shall be taken, attached, or sequestered on execution or other process
      of law in any action against Borrower;

     

    (i)  if
      any
      default occurs under the Environmental Indemnity (defined below) and such
      default is not cured within any applicable grace period in that document;

     

    (j)  if
      any
      default occurs under the Recourse Liabilities Guaranty by Guarantor dated of
      even date herewith and such default is not cured within any applicable grace
      period in that document;

     

    (k)  if
      any
      default occurs under the Lessee Security Agreement related to the Property
      by
      Operating Lessee dated of even date herewith and such default is not cured
      within any applicable grace period in that document;

     

    (l)  if
      Borrower shall fail at any time to obtain, maintain, renew, or keep in force
      the
      insurance policies required by Section 3.06 within ten (10) days after written
      notice;

     

    (m)  if
      Borrower shall be in default under any other mortgage or security agreement
      covering any part of the Property, whether it be superior or junior in lien
      to
      this Instrument, which default is not cured within any applicable grace period
      (if any) set forth in such other mortgage or security agreement;

     

    (n)  if
      any
      claim of priority (except based upon a Permitted Encumbrance) to the Documents
      by title, lien, or otherwise shall be upheld by any court of competent
      jurisdiction or shall be consented to by Borrower; or

     

    (o)  (i)
      the
      consummation by Borrower of any transaction which would cause (A) the Loan
      or
      any exercise of Lender’s rights under the Documents to constitute a non-exempt
      prohibited transaction under ERISA or (B) a violation of a state statute
      regulating governmental plans; (ii) the failure of any representation in Section
      3.11 to be true and correct in all respects; or (iii) the failure of Borrower
      to
      provide Lender with the written certifications required under Section
      3.11.

     

    It
      is
      expressly acknowledged and agreed by Borrower that any Event of Default under
      any Document shall constitute an immediate Event of Default under this
      Instrument, and Lender shall have no obligation to give and Borrower shall
      have
      no right to receive, any additional notice and/or opportunity to cure said
      Event
      of Default.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      6.02  
      Remedies.
      If an
      Event of Default occurs, Lender or any person designated by Lender may (but
      shall not be obligated to) take any action (separately, concurrently,
      cumulatively, and at any time and in any order) permitted under any Laws,
      without notice, demand, presentment, or protest (all of which are hereby
      waived), to protect and enforce Lender’s rights under the Documents or Laws
      including the following actions:

     

    (a)  accelerate
      and declare the entire unpaid Obligations immediately due and payable, except
      for defaults under Section 6.01 (f), (g), or (h) which shall automatically
      make
      the Obligations immediately due and payable; 

     

    (b)  judicially
      or otherwise, (i) completely foreclose this Instrument or (ii) partially
      foreclose this Instrument for any portion of the Obligations due and the lien
      and security interest created by this Instrument shall continue unimpaired
      and
      without loss of priority as to the remaining Obligations not yet
      due;

     

    (c)  sell
      for
      cash or upon credit the Property and all right, title and interest of Borrower
      therein and rights of redemption thereof, pursuant to power of sale;

     

    (d)  recover
      judgment on the Note either before, during or after any proceedings for the
      enforcement of the Documents and without any requirement of any action being
      taken to (i) realize on the Property or (ii) otherwise enforce the Documents;
      

     

    (e)  seek
      specific performance of any provisions in the Documents; 

     

    (f)  apply
      for
      the appointment of a receiver, custodian, substitute trustee, liquidator, or
      conservator of the Property without (i) notice to any person, (ii) regard for
      (A) the adequacy of the security for the Obligations or (B) the solvency of
      Borrower or any person liable for the payment of the Obligations; and Borrower
      and any person so liable waives or shall be deemed to have waived the foregoing
      and any other objections to the fullest extent permitted by Laws and consents
      or
      shall be deemed to have consented to such appointment; 

     

    (g)  with
      or
      without entering upon the Property, (i) exclude Borrower and any person from
      the
      Property without liability for trespass, damages, or otherwise, (ii) take
      possession of, and Borrower shall surrender on demand, all books, records,
      and
      accounts relating to the Property, (iii) give notice to Tenants or any person,
      make demand for, collect, receive, sue for, and recover in its own name all
      Rents and cash collateral derived from the Property; (iv) use, operate, manage,
      preserve, control, and otherwise deal with every aspect of the Property
      including (A) conducting its business, (B) insuring it, (C) making all repairs,
      renewals, replacements, alterations, additions, and improvements to or on it,
      (D) completing the construction of any Improvements in manner and form as Lender
      deems advisable, and (E) executing, modifying, enforcing, and terminating new
      and existing Leases and reservations on such terms as Lender deems advisable
      and
      evicting any Tenants in default; (v) apply the receipts from the Property to
      payment of the Obligations, in any order or priority determined by Lender or
      Trustee, after first deducting all Costs, expenses, and liabilities incurred
      by
      Lender or Trustee in connection with the foregoing operations and all amounts
      needed to pay the Impositions and other expenses of the Property, as well as
      just and reasonable compensation for the services of Lender, Trustee and
      its/their attorneys, agents, and employees; and/or (vi) in every case in
      connection with the foregoing, exercise all rights and powers of Borrower,
      Lender or Trustee with respect to the Property, either in Borrower’s name or
      otherwise; 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (h)  release
      any portion of the Property for such consideration, if any, as Lender may
      require without, as to the remainder of the Property, impairing or affecting
      the
      lien or priority of this Instrument or improving the position of any subordinate
      lienholder with respect thereto, except to the extent that the Obligations
      shall
      have been actually reduced, and Lender may accept by assignment, pledge, or
      otherwise any other property in place thereof as Lender may require without
      being accountable for so doing to any other lienholder; 

     

    (i)  apply
      any
      Deposits to the following items in any order and in Lender’s or Trustee’s sole
      discretion: (A) the Obligations, (B) Costs, (C) advances made by Lender under
      the Documents, and/or (D) Impositions; 

     

    (j)  take
      all
      actions permitted under the UCC of the Property State including (i) the right
      to
      take possession of all tangible and intangible personal property now or
      hereafter included within the Property (“Personal
      Property”)
      and
      take such actions as Lender or Trustee deems advisable for the care, protection
      and preservation of the Personal Property; (ii) request Borrower at its expense
      to assemble the Personal Property and make it available to Lender or Trustee
      at
      a convenient place acceptable to Lender or Trustee; and (iii) deliver to
      Trustee a written declaration of default and demand for sale, and a written
      notice of default and election to cause the Property to be sold, which notice
      Trustee or Lender shall cause to be duly filed for record. Any notice of sale,
      disposition or other intended action by Lender with respect to the Personal
      Property sent to Borrower at least ten (10) days prior to such action shall
      constitute commercially reasonable notice to Borrower; or

     

    (k)  take
      any
      other action permitted under any Laws.

     

    If
      Lender
      exercises any of its rights under Section 6.02(g), Lender shall not (a) be
      deemed to have entered upon or taken possession of the Property except upon
      the
      exercise of its option to do so, evidenced by its demand and overt act for
      such
      purpose; (b) be deemed a Lender or mortgagee in possession by reason of such
      entry or taking possession; nor (c) be liable (i) to account for any action
      taken pursuant to such exercise other than for Rents actually received by
      Lender, (ii) for any loss sustained by Borrower resulting from any failure
      to
      lease the Property, or (iii) any other act or omission of Lender except for
      losses caused by Lender’s willful misconduct or gross negligence. Borrower
      hereby consents to, ratifies, and confirms the exercise by Lender of its rights
      under this Instrument and appoints Lender as its attorney-in-fact, which
      appointment shall be deemed to be coupled with an interest and irrevocable,
      for
      such purposes.

     

    Section
      6.03  
      Expenses.
      All
      Costs, expenses, or other amounts paid or incurred by Lender in the exercise
      of
      its rights under the Documents, together with interest thereon at the applicable
      interest rate specified in the Note, which shall be the Default Rate unless
      prohibited by Laws, shall be (a) part of the Obligations, (b) secured by this
      Instrument, and (c) allowed and included as part of the Obligations in any
      foreclosure, decree for sale, or other judgment or decree enforcing Lender’s
      rights under the Documents.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      6.04  
      Rights Pertaining to Sales.
      

     

    (a)  Should
      Lender elect to foreclose by exercise of the power of sale herein contained,
      Lender shall notify Trustee and shall deposit with Trustee this Instrument
      and
      the Note and such receipts and evidence of expenditures made and secured hereby
      as Trustee may require. Upon receipt of such notice from Lender, Trustee shall
      cause to be recorded, published and delivered to Borrower such notice of default
      and notice of sale as then required by law and by this Instrument. Trustee
      shall, without demand on Borrower, after lapse of such time as may then be
      required by law and after recordation of such notice of default and after notice
      of sale having been given as required by law, sell the Property at the time
      and
      place of sale fixed by it in said notice of sale, either as a whole, or in
      separate lots or parcels or items as Lender shall determine, and in such order
      as Lender may determine, at public auction to the highest bidder for cash in
      lawful money of the United States payable at the time of sale. Trustee shall
      deliver to such purchaser or purchasers thereof its good and sufficient deed
      or
      deeds conveying the property so sold, but without any covenant or warranty,
      express or implied. The recitals in such deed of any matters or facts shall
      be
      conclusive proof of the truthfulness thereof. Any Person, including Borrower,
      Trustee or Lender, may purchase at such sale and Borrower hereby covenants
      to
      warrant and defend the title of such purchaser or purchasers. After deducting
      all costs, fees and expenses of Trustee and of the trust created by this
      Instrument, including costs of evidence of title in connection with sale,
      Trustee shall apply the proceeds of sale in the following priority, to payment
      of: (i) first, all sums expended under the terms hereof, not then repaid, with
      accrued interest at the Default Rate; (ii) second, all other sums then secured
      hereby; and (iii) the remainder, if any, to the person or persons legally
      entitled thereto. Lender may, in its sole discretion, designate the order in
      which the Property shall be offered for sale or sold through a single sale
      or
      through two or more successive sales, or in any other manner Lender deems to
      be
      in its best interest. If Lender elects more than one sale or other disposition
      of the Property, Lender may at its option cause the same to be conducted
      simultaneously or successively, on the same day or at such different days or
      times and in such order as Lender may deem to be in its best interests, and
      no
      such sale shall terminate or otherwise affect the lien of this Instrument on
      any
      part of the Property not then sold until all Obligations secured hereby have
      been fully paid. If Lender elects to dispose of the Property through more than
      one sale, Borrower shall pay the costs and expenses of each such sale of its
      interest in the Property and of any proceedings where the same may be made.
      Trustee may postpone the sale of all or any part of the Property by public
      announcement at such time and place of sale, and from time to time thereafter
      may postpone such sale by public announcement at the time fixed by the preceding
      postponement, and without further notice make such sale at the time fixed by
      the
      last postponement; or Trustee may, in its discretion, give a new notice of
      sale.
      Lender may rescind any such notice of default at any time before Trustee’s sale
      by executing a notice of rescission and recording the same. The recordation
      of
      such notice shall constitute a cancellation of any prior declaration of default
      and demand for sale and of any acceleration of maturity of Obligations affected
      by any prior declaration or notice of default. The exercise by Lender of the
      right of rescission shall not constitute a waiver of any default then existing
      or subsequently occurring, or impair the right of Lender to execute other
      declarations of default and demand for sale, or notices of default and of
      election to cause the Property to be sold, or otherwise affect the Note or
      this
      Instrument, or any of the rights, obligations or remedies of Lender or Trustee
      hereunder.

     

    (b)  In
      the
      event of a sale of the Property, or any part thereof, and the execution of
      a
      deed therefor, the recital therein of default, and of recording the notice
      of
      default and notice of sale, and of the elapse of the required time (if any)
      between the recording and the notice, and of the giving of notice of sale,
      and
      of a demand by Lender, or its successors or assigns, that such sale should
      be
      made, shall be conclusive proof of such default, recording, election, elapse
      of
      time, and giving of such notice, and that the sale was regularly and validly
      made on due and proper demand by Lender, its successors or assigns. Any such
      deed or deeds with such recitals therein shall be effective and conclusive
      against Borrower, its successors and assigns, and all other Persons. The receipt
      for the purchase money recited or contained in any deed executed to the
      purchaser as aforesaid shall be sufficient discharge to such purchaser from
      all
      obligations to see to the proper application of the purchase money.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      6.05  
      Applications of Proceeds.
      Any
      proceeds received from any sale or disposition under Article VI or otherwise,
      together with any other sums held by Lender, shall, except as expressly provided
      to the contrary, be applied in the order determined by Lender or Trustee to:
      (a)
      payment of all Costs and expenses of any enforcement action or foreclosure
      sale,
      including interest thereon at the applicable interest rate specified in the
      Note, which shall be the Default Rate unless prohibited by Laws, (b) all taxes,
      Assessments, and other charges unless the Property was sold subject to these
      items; (c) payment of the Obligations in such order as Lender may elect; (d)
      payment of any other sums secured or required to be paid by Borrower; and (e)
      payment of the surplus, if any, to any person lawfully entitled to receive
      it.
      Borrower and Lender intend and agree that during any period of time between
      any
      foreclosure judgment that may be obtained and the actual foreclosure sale that
      the foreclosure judgment will not extinguish the Documents or any rights
      contained therein including the obligation of Borrower to pay all Costs and
      to
      pay interest at the applicable interest rate specified in the Note, which shall
      be the Default Rate unless prohibited by Laws.

     

    Section
      6.06  
      Additional Provisions as to Remedies.
      No
      failure, refusal, waiver, or delay by Lender or Trustee to exercise any rights
      under the Documents upon any default or Event of Default shall impair Lender’s
      or Trustee’s rights or be construed as a waiver of, or acquiescence to, such or
      any subsequent default or Event of Default. No recovery of any judgment by
      Lender or Trustee and no levy of an execution upon the Property or any other
      property of Borrower shall affect the lien and security interest created by
      this
      Instrument and such liens, rights, powers, and remedies shall continue
      unimpaired as before. Lender or Trustee may resort to any security given by
      this
      Instrument or any other security now given or hereafter existing to secure
      the
      Obligations, in whole or in part, in such portions and in such order as Lender
      or Trustee may deem advisable, and no such action shall be construed as a waiver
      of any of the liens, rights, or benefits granted hereunder. Acceptance of any
      payment after any Event of Default shall not be deemed a waiver or a cure of
      such Event of Default and such acceptance shall be deemed an acceptance on
      account only. If Lender or Trustee has started enforcement of any right by
      foreclosure, sale, entry, or otherwise and such proceeding shall be
      discontinued, abandoned, or determined adversely for any reason, then Borrower,
      Lender and Trustee shall be restored to their former positions and rights under
      the Documents with respect to the Property, subject to the lien and security
      interest hereof.

     

    Section
      6.07  
      Waiver of Rights and Defenses.
      To the
      fullest extent Borrower is not prohibited from doing so under Laws, Borrower
      (a)
      will not at any time insist on, plead, claim, or take the benefit of any statute
      or rule of law now or later enacted providing for any appraisement, valuation,
      stay, extension, moratorium, redemption, or any statute of limitations; (b)
      for
      itself, its successors and assigns, and for any person ever claiming an interest
      in the Property (other than Lender), waives and releases all rights of
      redemption, reinstatement, valuation, appraisement, notice of intention to
      mature or declare due the whole of the Obligations, all rights to a marshaling
      of the assets of Borrower, including the Property, or to a sale in inverse
      order
      of alienation, in the event of foreclosure (or extinguishment by transfer of
      title by power of sale) of the liens and security interests created under the
      Documents; (c) shall not be relieved of its obligation to pay the Obligations
      as
      required in the Documents nor shall the lien or priority of the Documents be
      impaired by any agreement renewing, extending, or modifying the time of payment
      or the provisions of the Documents (including a modification of any interest
      rate), unless expressly released, discharged, or modified by such agreement.
      Regardless of consideration and without any notice to or consent by the holder
      of any subordinate lien, security interest, encumbrance, right, title, or
      interest in or to the Property, Lender may (a) release any person liable for
      payment of the Obligations or any portion thereof or any part of the security
      held for the Obligations or (b) modify any of the provisions of the Documents
      without impairing or affecting the Documents or the lien, security interest,
      or
      the priority of the modified Documents as security for the Obligations over
      any
      such subordinate lien, security interest, encumbrance, right, title, or
      interest.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VII  -
      SECURITY AGREEMENT
      AND FIXTURE FILING

     

    Section
      7.01  
      Security Agreement.
      This
      Instrument constitutes both a real property deed of trust and a “security
      agreement”
within
      the meaning of the UCC. The Property includes real and personal property and
      all
      tangible and intangible rights and interest of Borrower in the Property.
      Borrower grants to Lender and Trustee, as security for the Obligations, a
      security interest in the Personal Property to the fullest extent that it/the
      same may be subject to the UCC. Borrower authorizes Lender to file any financing
      or continuation statements and amendments thereto relating to the Personal
      Property without the signature of Borrower if permitted by Laws.

     

    Section
      7.02  
      Fixture Filing.
      This
      Instrument covers certain goods which are or are to be come fixtures related
      to
      the Land and constitutes a fixture filing under the California Uniform
      Commercial Code with respect to such goods executed by Borrower as debtor in
      favor of Lender as secured party.

     

    ARTICLE
      VIII  -
      LIMITATION ON PERSONAL LIABILITY AND INDEMNITIES

     

    Section
      8.01  
      Recourse Liability.
      The
      provisions of Paragraphs 9 and 10 of the Note are incorporated into this
      Instrument as if such provisions were set forth in their entirety in this
      Instrument.

     

    Section
      8.02  
      General Indemnity.
      Borrower agrees that while Lender has no liability to any person in tort or
      otherwise as lender and that Lender is not an owner or operator of the Property,
      Borrower shall, at its sole expense, protect, defend, release, indemnify and
      hold harmless (“indemnify”)
      the
      Indemnified Parties (defined below) from any Losses (defined below) imposed
      on,
      incurred by, or asserted against the Indemnified Parties, directly or
      indirectly, arising out of or in connection with the Property, Loan, or
      Documents, including Losses; provided, however, that the foregoing indemnities
      shall not apply to any Losses caused by the gross negligence or willful
      misconduct of the Indemnified Parties. The term “Losses”
shall
      mean any claims, suits, liabilities (including strict liabilities), actions,
      proceedings, obligations, debts, damages, losses, Costs, expenses, fines,
      penalties, charges, fees, judgments, awards, and amounts paid in settlement
      of
      whatever kind including attorneys’ fees (both in-house staff and retained
      attorneys) and all other costs of defense. The term “Indemnified
      Parties”
shall
      mean (a) Lender, (b) any prior owner or holder of the Note, (c) any
      existing or prior servicer of the Loan, (d) Trustee, (e) the officers,
      directors, shareholders, partners, members, employees and trustees of any of
      the
      foregoing, and (f) the heirs, legal representatives, successors and assigns
      of each of the foregoing.

     

    Section
      8.03  
      Transaction Taxes Indemnity.
      Borrower shall, at its sole expense, indemnify the Indemnified Parties from
      all
      Losses imposed upon, incurred by, or asserted against the Indemnified Parties
      or
      the Documents relating to Transaction Taxes.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      8.04  
      ERISA Indemnity.
      Borrower shall, at its sole expense, indemnify the Indemnified Parties against
      all Losses imposed upon, incurred by, or asserted against the Indemnified
      Parties (a) as a result of a Violation, (b) in the investigation, defense,
      and
      settlement of a Violation, (c) as a result of a breach of the representations
      in
      Section 3.11 or default thereunder, (d) in correcting any prohibited transaction
      or the sale of a prohibited loan, and (e) in obtaining any individual prohibited
      transaction exemption under ERISA that may be required, in Lender’s sole
      discretion.

     

    Section
      8.05  
      Environmental Indemnity.
      Borrower and other persons, if any, have executed and delivered the
      Environmental Indemnity Agreement dated the date hereof to Lender (“Environmental
      Indemnity”).

     

    Section
      8.06  
      Duty to Defend, Costs and Expenses.
      Upon
      request, whether Borrower’s obligation to indemnify Lender arises under Article
      VIII or in the Documents, Borrower shall defend the Indemnified Parties (in
      Borrower’s or the Indemnified Parties’ names) by attorneys and other
      professionals reasonably approved by the Indemnified Parties. Notwithstanding
      the foregoing, the Indemnified Parties may, in their sole discretion, engage
      their own attorneys and professionals to defend or assist them and, at their
      option, their attorneys shall control the resolution of any claims or
      proceedings. Upon demand, Borrower shall pay or, in the sole discretion of
      the
      Indemnified Parties, reimburse and/or indemnify the Indemnified Parties for all
      Costs imposed on, incurred by, or asserted against the Indemnified Parties
      by
      reason of any items set forth in this Article VIII and/or the enforcement or
      preservation of the Indemnified Parties’ rights under the Documents. Any amount
      payable to the Indemnified Parties under this Section shall (a) be deemed a
      demand obligation, (b) be part of the Obligations, (c) bear interest at the
      applicable interest rate specified in the Note, which shall be the Default
      Rate
      unless prohibited by Laws, until paid if not paid on demand, and (d) be secured
      by this Instrument.

     

    Section
      8.07  
      Recourse Obligation and Survival.
      Notwithstanding anything to the contrary in the Documents and in addition to
      the
      recourse obligations in the Note, the obligations of Borrower under Sections
      8.03, 8.04, 8.05, and 8.06 shall be a full recourse obligation of Borrower,
      shall not be subject to any limitation on personal liability in the Documents,
      and shall survive (a) repayment of the Obligations, (b) any termination,
      satisfaction, transfer of title by power of sale, assignment or foreclosure
      of
      this Instrument, (c) the acceptance by Lender (or any nominee) of a deed in
      lieu
      of foreclosure, (d) a plan of reorganization filed under the Bankruptcy Code,
      or
      (e) the exercise by the Lender of any rights in the Documents. Borrower’s
      obligations under Article VIII shall not be affected by the absence or
      unavailability of insurance covering the same or by the failure or refusal
      by
      any insurance carrier to perform any obligation under any applicable insurance
      policy.

     

    ARTICLE
      IX  -
      ADDITIONAL PROVISIONS

     

    Section
      9.01  
      Usury Savings Clause.
      All
      agreements in the Documents are expressly limited so that in no event whatsoever
      shall the amount paid or agreed to be paid under the Documents for the use,
      forbearance, or detention of money exceed the highest lawful rate permitted
      by
      Laws. If, at the time of performance, fulfillment of any provision of the
      Documents shall involve transcending the limit of validity prescribed by Laws,
      then, ipso facto, the obligation to be fulfilled shall be reduced to the limit
      of such validity. If Lender shall ever receive as interest an amount which
      would
      exceed the highest lawful rate, the receipt of such excess shall be deemed
      a
      mistake and (a) shall be canceled automatically or (b) if paid, such excess
      shall be (i) credited against the principal amount of the Obligations to the
      extent permitted by Laws or (ii) rebated to Borrower if it cannot be so credited
      under Laws (in which event, no Prepayment Premium shall be due with respect
      to
      the amount so credited). Furthermore, all sums paid or agreed to be paid under
      the Documents for the use, forbearance, or detention of money shall to the
      extent permitted by Laws be amortized, prorated, allocated, and spread
      throughout the full stated term of the Note until payment in full so that the
      rate or amount of interest on account of the Obligations does not exceed the
      maximum lawful rate of interest from time to time in effect and applicable
      to
      the Obligations for so long as the Obligations are outstanding.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      9.02  
      Notices.
      Any
      notice, request, demand, consent, approval, direction, agreement, or other
      communication (any “notice”) required or permitted under the Documents shall be
      in writing and shall be validly given if sent by a nationally-recognized courier
      that obtains receipts, delivered personally by a courier that obtains receipts,
      or mailed by United States certified mail (with return receipt requested and
      postage prepaid) addressed to the applicable person as follows, or by facsimile
      followed by a confirmation delivered in the manner provided
      above:

     

    If
      to
      Borrower:

     

    PH
      Hotel
      Partners, LP

    c/o
      CNL
      Hospitality Corp.

    420
      South
      Orange Avenue, Suite 700

    Orlando,
      Florida 32801-3313

    Attention:
      Chief General Counsel       
      Facsimile: (407) 540-2702

     

    With
      a
      copy to: 

    Greenburg
      Traurig P.A.

    450
      S.
      Orange Avenue, Suite 650

    Orlando,
      FL 32801

    Attention:
      Michael J. Sullivan, Esq.

    Facsimile:
      (407) 650-8425

    

    And
      a
      copy to:

    Lowndes,
      Drosdick, Doster, Kantor & Reed, P.A.

    215
      N.
      Eola Drive

    Orlando,
      FL 32802-2806

    Attention:
      Richard J. Fildes, Esq.

    Facsimile:
      (407) 843-4444

    

    If
      to
      Lender:

    

    THE
      PRUDENTIAL INSURANCE COMPANY OF AMERICA

    Prudential
      Asset Resources

    2200
      Ross
      Avenue

    Suite
      4900-E

    Dallas,
      Texas 75201

    Attention:
      Asset Management Department

    Reference
      Loan No. 70-6-106-306

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    with
      a
      copy to:

    THE
      PRUDENTIAL INSURANCE COMPANY OF AMERICA

    Prudential
      Asset Resources

    2200
      Ross
      Avenue

    Suite
      4900-E

    Dallas,
      Texas 75201

    Attention:
      Legal Department

    Reference
      Loan No. 70-6-106-306

    

    And
      a
      copy to:

    DLA
      Piper
      Rudnick Gray Cary US LLP

    153
      Townsend Street, 8th
      Floor

    San
      Francisco, CA 94107

    Attention:
      Stephen A. Cowan, Esq. 

    Facsimile:
      (415) 836-2500

    

     

    Each
      notice shall be effective upon being so sent, delivered, or mailed, but the
      time
      period for response or action shall run from the date of receipt as shown on
      the
      delivery receipt. Refusal to accept delivery or the inability to deliver because
      of a changed address for which no notice was given shall be deemed receipt.
      Any
      party may periodically change its address for notice and specify up to two
      (2)
      additional addresses for copies by giving the other party at least ten (10)
      days’ prior notice.

     

    Section
      9.03  
      Sole Discretion of Lender.
      Except
      as otherwise expressly stated, whenever Lender’s judgment, consent, or approval
      is required or Lender shall have an option or election under the Documents,
      such
      judgment, the decision as to whether or not to consent to or approve the same,
      or the exercise of such option or election shall be in the sole and absolute
      discretion of Lender.

     

    Section
      9.04  
      Applicable Law and Submission to Jurisdiction.
      The
      validity and interpretation of this Instrument and of all other documents
      evidencing or securing the Obligations shall be construed in accordance with
      the
      laws of the State of Florida, except that the laws of the State of California
      shall govern any question regarding the creation, perfection and priority of,
      or
      procedures for enforcing the lien on, real property granted Lender under this
      Instrument. Questions concerning the availability of a post-foreclosure
      deficiency, any requirement to exhaust security, the availability of personal
      judgments against and recourse to the Borrower, the order in which a creditor
      exercises its remedies and the effect of exercising remedies are not questions
      concerning the creation, perfection or priority of, or procedures for enforcing
      the lien on, real property and shall be governed by the laws of Florida. Without
      limiting Lender’s or Trustee’s right to bring any action or proceeding against
      Borrower or the Property relating to the Obligations (an “Action”) in the courts
      of other jurisdictions, Borrower irrevocably (a) submits to the jurisdiction
      of
      any state or federal court in California and in Florida, (b) agrees that any
      Action may be heard and determined in such court, and (c) waives, to the fullest
      extent permitted by Laws, the defense of an inconvenient forum to the
      maintenance of any Action in such jurisdiction.

     

    Section
      9.05  
      Construction of Provisions.
      The
      following rules of construction shall apply for all purposes of this Instrument
      unless the context otherwise requires: (a) all references to numbered Articles
      or Sections or to lettered Exhibits are references to the Articles and Sections
      hereof and the Exhibits annexed to this Instrument and such Exhibits are
      incorporated into this Instrument as if fully set forth in the body of the
      Instrument; (b) all Article, Section, and Exhibit captions are used for
      convenience and reference only and in no way define, limit, or in any way affect
      this Instrument; (c) words of masculine, feminine, or neuter gender shall mean
      and include the correlative words of the other genders, and words importing
      the
      singular number shall mean and include the plural number, and vice versa; (d)
      no
      inference in favor of or against any party shall be drawn from the fact that
      such party has drafted any portion of this Instrument; (e) all obligations
      of
      Borrower hereunder shall be performed and satisfied by or on behalf of Borrower
      at Borrower’s sole expense; (f) the terms “include,”
      “including,”
and
      similar terms shall be construed as if followed by the phrase “without
      being limited to”;
      (g)
      the terms “Property”,
      “Land”,
      “Improvements”,
      and
“Personal
      Property”
shall
      be construed as if followed by the phrase “or any part thereof”; (h) the term
“Obligations”
shall
      be construed as if followed by the phrase “or
      any other sums secured hereby, or any part thereof”;
      (i)
      the term “person”
shall
      include natural persons, firms, partnerships, corporations, governmental
      authorities or agencies, and any other public or private legal entities; (j)
      the
      term “provisions,”
when
      used with respect hereto or to any other document or instrument, shall be
      construed as if preceded by the phrase “terms,
      covenants, agreements, requirements, and/or conditions”;
      (k)
      the term “lease”
shall
      mean “tenancy,
      subtenancy, lease, sublease, or rental agreement,”
the
      term “lessor”
shall
      mean “landlord,
      sublandlord, lessor, and sublessor,”
and
      the term “Tenants”
or
      “lessee”
      shall mean “tenant, subtenant, lessee, and sublessee”;
      (l)
      the term “owned”
shall
      mean “now
      owned or later acquired”;
      (m)
      the terms “any”
and
      “all”
shall
      mean “any
      or all”;
      (n)
      the term “on
      demand”
or
      “upon
      demand”
shall
      mean “within
      five (5) business days after written notice”;
      and
      (o) the term “Trustee”
shall
      mean “Trustee,
      its successors and assigns, and any substitute or successor Trustee of the
      estates, properties, powers, trusts and rights conferred upon Trustee pursuant
      to the Documents.”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      9.06  
      Transfer of Loan.
      Lender
      may, at any time, (i) sell, transfer or assign the Documents and any servicing
      rights with respect thereto or (ii) grant participations therein or issue
      mortgage or deed of trust pass-through certificates or other securities
      evidencing a beneficial interest in a rated or unrated public offering or
      private placement (collectively, the “Securities”).
      Lender may forward to any purchaser, transferee, assignee, servicer,
      participant, or investor in such Securities (collectively, “Investors”),
      to
      any Rating Agency (defined below) rating such Securities and to any prospective
      Investor, all documents and information which Lender now has or may later
      acquire relating to the Obligations, Borrower, any guarantor, any indemnitor(s),
      the Leases, and the Property, whether furnished by Borrower, any guarantor,
      any
      indemnitor(s) or otherwise, as Lender determines advisable. Borrower, any
      guarantor and any indemnitor agree to cooperate with Lender in connection with
      any transfer made or any Securities created pursuant to this Section including
      the delivery of an estoppel certificate in accordance with Section 3.16 and
      such
      other documents as may be reasonably requested by Lender. Borrower shall also
      furnish any consent of Borrower, any guarantor and any indemnitor in order
      to
      permit Lender to furnish such Investors or such prospective Investors or such
      Rating Agency with any and all information concerning the Property, the Leases,
      the financial condition of Borrower, any Guarantor and any indemnitor, as may
      be
      reasonably requested by Lender, any Investor, any prospective Investor or any
      Rating Agency and which may be complied with without undue expense. Lender
      shall
      require that such prospective Investors and Rating Agencies comply with
      reasonable confidentiality restrictions respecting the financial information
      concerning Guarantor and CNL HHC Partners, LP, provided the subject financial
      information concerning Guarantor and CNL HHC Partners, LP is not otherwise
      available to Lender or the public by electronic or hard copy publications,
      and
      Lender shall have no liability whatsoever for any claim or loss arising from
      and
      such Investors or Rating Agencies failing to comply with the terms thereof.
      “Rating Agency” shall mean any one ore more credit rating agencies approved by
      Lender.

     

    Section
      9.07  
      Miscellaneous.
      If any
      provision of the Documents shall be held to be invalid, illegal, or
      unenforceable in any respect, this shall not affect any other provisions of
      the
      Documents and such provision shall be limited and construed as if it were not
      in
      the Documents. If title to the Property becomes vested in any person other
      than
      Borrower, Lender and Trustee may, without notice to Borrower, deal with such
      person regarding the Documents or the Obligations in the same manner as with
      Borrower without in any way vitiating or discharging Borrower’s liability under
      the Documents or being deemed to have consented to the vesting. If both the
      lessor’s and lessee’s interest under any Lease ever becomes vested in any one
      person, this Instrument and the lien and security interest created hereby shall
      not be destroyed or terminated by the application of the doctrine of merger
      and
      Lender and Trustee shall continue to have and enjoy all its rights and
      privileges as to each separate estate. Upon foreclosure (or transfer of title
      by
      power of sale) of this Instrument, none of the Leases shall be destroyed or
      terminated as a result of such foreclosure (or sale), by application of the
      doctrine of merger or as a matter of law, unless Lender or Trustee takes all
      actions required by law to terminate the Leases as a result of foreclosure
      or
      sale. All of Borrower’s covenants and agreements under the Documents shall run
      with the land and time is of the essence. Borrower appoints Lender as its
      attorney-in-fact, which appointment is irrevocable and shall be deemed to be
      coupled with an interest, with respect to the execution, acknowledgment,
      delivery, filing or recording for and in the name of Borrower of any of the
      documents reasonably required to give effect to the rights, covenants,
      provisions and requirements set forth in Sections 3.04, 3.19, 4.01 and 6.02
      of
      this Instrument. The Documents cannot be amended, terminated, or discharged
      except in a writing signed by the party against whom enforcement is sought.
      No
      waiver, release, or other forbearance by Lender will be effective unless it
      is
      in a writing signed by Lender and then only to the extent expressly stated.
      The
      provisions of the Documents shall be binding upon Borrower and its heirs,
      devisees, representatives, successors, and assigns including successors in
      interest to the Property and inure to the benefit of Lender and Trustee and
      its/their heirs, successors, substitutes, and assigns. Where two or more persons
      have executed the Documents, the obligations of such persons shall be joint
      and
      several, except to the extent the context clearly indicates otherwise. The
      Documents may be executed in any number of counterparts with the same effect
      as
      if all parties had executed the same document. All such counterparts shall
      be
      construed together and shall constitute one instrument, but in making proof
      hereof it shall only be necessary to produce one such counterpart. Upon receipt
      of an affidavit of an officer of Lender as to the loss, theft, destruction
      or
      mutilation of any Document which is not of public record, and, in the case
      of
      any mutilation, upon surrender and cancellation of the Document, Borrower will
      issue, in lieu thereof, a replacement Document, dated the date of the lost,
      stolen, destroyed or mutilated Document containing the same provisions. Any
      reviews, inspections, reports, approvals or similar items conducted, made or
      produced by or on behalf of Lender with respect to Borrower, the Property or
      the
      Loan are for loan underwriting and servicing purposes only, and shall not
      constitute an acknowledgment, representation or warranty of the accuracy
      thereof, or an assumption of liability with respect to Borrower, Borrower's
      contractors, architects, engineers, employees, agents or invitees, present
      or
      future tenants, occupants or owners of the Property, or any other
      party.

     

    Section
      9.08  
      Entire Agreement.
      Except
      as provided in Section 3.17, (a) the Documents constitute the entire
      understanding and agreement between Borrower, Lender and Trustee with respect
      to
      the Loan and supersede all prior written or oral understandings and agreements
      with respect to the Loan including the Loan application and Loan commitment
      and
      (b) Borrower is not relying on any representations or warranties of Lender
      except as expressly set forth in the Documents.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    Section
      9.09  
      WAIVER OF TRIAL BY JURY.
      TO THE
      FULLEST EXTENT NOT PROHIBITED BY LAW, BORROWER AND LENDER BY LENDER’S ACCEPTANCE
      OF THIS INSTRUMENT HEREBY AGREES TO, AND DOES, WAIVE ITS RESPECTIVE RIGHTS
      TO A
      JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THE
      LOAN, ANY DOCUMENT OR ANY OTHER DOCUMENT OR INSTRUMENT BETWEEN INDEMNITOR AND
      LENDER RELATING TO THE LOAN, THE DOCUMENTS, THE PROPERTY OR ANY DEALINGS BETWEEN
      BORROWER AND LENDER RELATING TO THE SUBJECT MATTER OF ANY OF THE DOCUMENTS.
      THE
      SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES
      (EACH A “DISPUTE,” AND COLLECTIVELY, ANY OR ALL, THE “DISPUTES”) OF ANY KIND
      WHATSOEVER THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER
      OF THE LOAN, ANY DOCUMENT OR ANY OTHER DOCUMENT OR INSTRUMENT BETWEEN BORROWER
      AND LENDER RELATING TO THE LOAN, THE DOCUMENTS, THE PROPERTY OR ANY DEALINGS
      BETWEEN BORROWER AND LENDER RELATING TO THE SUBJECT MATTER OF ANY OF THE
      DOCUMENTS, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS,
      ANTITRUST CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON-LAW OR STATUTORY
      CLAIMS. BORROWER AND LENDER EACH ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL
      INDUCEMENT TO ENTERING INTO THIS INSTRUMENT AND ALL OTHER AGREEMENTS AND
      INSTRUMENTS PROVIDED FOR HEREIN, AND THAT EACH WILL CONTINUE TO BE BOUND BY
      AND
      RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. BORROWER AND LENDER EACH
      FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH LEGAL
      COUNSEL OF ITS OWN CHOOSING, OR HAS HAD AN OPPORTUNITY TO DO SO, AND THAT IT
      KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS HAVING HAD THE
      OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING
      THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL
      APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS, OR MODIFICATIONS
      TO
      THIS INSTRUMENT OR ANY OTHER 

     

    (No
      further text on this page)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DOCUMENT
      OR DOCUMENT ENTERED INTO BETWEEN BORROWER AND LENDER IN CONNECTION WITH THIS
      INSTRUMENT OR ANY DOCUMENT. IN THE EVENT OF LITIGATION, THIS INSTRUMENT MAY
      BE
      FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT WITHOUT A JURY.

     

    BORROWER’S
      INITIAL: __________

     

    Section
      9.10  
      Partial Release.
      This
      Instrument is subject to the Partial Release provision set forth in Section
      15
      of the Note to which reference is hereby made.

     

    Section
      9.11  
      Property Substitutions.
      This
      Instrument is subject to the Property Substitutions provision set forth in
      Section 16 of the Note to which reference is hereby made.

     

    Section
      9.12  
      Concerning the Trustee.
      By
      recording a written substitution in the county where the Property is located
      or
      by any other means permitted by Laws, Lender may (a) remove Trustee or any
      successor Trustee at any time (or times) without notice or cause and (b) replace
      any Trustee who dies or resigns. To the extent permitted by Laws, Trustee waives
      any statutory fee for its services and agrees to accept reasonable compensation
      in lieu thereof. Trustee may resign upon thirty (30) days notice to Lender
      and
      Borrower. If more than one person is appointed Trustee, all rights granted
      to
      Trustee under this Instrument may be exercised by any of them, without the
      others, with the same effect as if exercised by all of them jointly. In addition
      to exercising all rights set forth in this Instrument, Trustee may exercise
      all
      rights under Laws.

     

    Section
      9.13  
      Attorneys’ Fees.
      If any
      suit, action or proceeding of any kind (an “action”)
      is
      brought by any party hereto to enforce, defend or interpret any provision of
      this Instrument or any of the Documents (including an action for declaratory
      relief), the prevailing party in such action shall recover from the other
      non-prevailing parties to such action all reasonable costs and expenses which
      the prevailing party may incur in bringing such action and/or enforcing any
      judgment granted therein and/or incurred at or in preparation for any appeal
      or
      review, all of which shall be deemed to have accrued upon the commencement
      of
      such action and shall be paid whether or not such action is prosecuted to
      judgment. The “prevailing
      party”
means
      the party entitled to recover costs of suit, whether or not any action proceeds
      to final judgment. Any judgment or order entered in such action shall
      specifically provide for the recovery of all reasonable costs and expenses
      incurred by the prevailing party in connection therewith including costs and
      expenses incurred in enforcing such judgment. For the purpose of this Section
      9.13, “costs
      and expenses”
include
      all court costs and attorneys’ fees, such as court costs and attorneys’ fees
      incurred in connection with any of the following: (i) post-judgment motions,
      (ii) contempt proceedings, (ii) garnishment, levy and debtor and third party
      examinations, (iv) discovery, (v) bankruptcy litigation and (vi) any appeal
      or review of the foregoing. Lender shall have the right (but not the obligation)
      to commence, appear in, or defend any action purporting to affect any of the
      interests, rights, obligations or liabilities of Lender or Borrower in
      connection with this Instrument or any of the Documents, and Borrower shall
      pay
      to Lender on demand all costs and expenses reasonably incurred by Lender in
      connection therewith.

     

    Section
      9.14  
      Standard of Approval; Covenant of Good Faith and Fair
      Dealing.
      Whenever Trustee or Lender has been specifically granted a right to exercise
      its
      business judgment, or act, in a subjective manner, with respect to any matter,
      or the right to act in its sole and absolute discretion or sole judgment, or
      the
      right to make a subjective judgment under any provision of this Instrument,
      whether or not “objectively” reasonable under the circumstances, any such
      exercise shall not be deemed inconsistent with any covenant of good faith and
      fair dealing otherwise implied by law to be part of the Documents.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      X  -
      LOCAL LAW PROVISIONS

     

    Section
      10.01  
      State Specific Provisions.
      

     

    (a) Any
      reference herein to Borrower as Borrower shall also mean Borrower in its
      capacity as Trustor under a deed of trust

    

    (b) Notwithstanding
      anything to the contrary set forth herein or in any of the Documents, this
      Instrument does not secure the following obligations (the “Unsecured
      Obligations”): (i) any guarantee executed by any party in connection with the
      Loan; (ii) any obligations evidenced by or arising under the Hazardous
      Substances Indemnity; or (iii) any other obligations in this Instrument or
      in
      any of the other Documents to the extent that such other obligations relate
      specifically to the presence on the Property of Hazardous Materials (as defined
      in the Hazardous Substances Indemnity) and are the same or have the same effect
      as any of the obligations evidenced by or arising under the Hazardous Substances
      Indemnity. Any breach or default not cured within any applicable grace or cure
      period thereunder with respect to the Unsecured Obligations shall constitute
      an
      Event of Default hereunder, notwithstanding the fact that such Unsecured
      Obligations are not secured by this Instrument. Nothing in this section shall,
      in itself, impair or limit Lender’s right to obtain a judgment in accordance
      with applicable law after foreclosure for any deficiency in recovery of all
      obligations that are secured by this Instrument following
      foreclosure.

    

    (c) Borrower
      hereby unconditionally and irrevocably waives all rights of a property owner
      under Section 1265.225(a) of the California Code of Civil Procedure or any
      successor statute providing for the allocation of condemnation proceeds between
      a property owner and a lien holder.

    

    (d) As
      used
      herein, the term “Borrower” shall be deemed to refer to each and every Borrower,
      both individually and collectively, when more than one Borrower exists, and
      to
      the original Borrower, and its or their successors and assigns (whether or
      not
      such assign assumed the Obligations hereunder); the term “Lender” includes the
      Lender named herein or any future owner or holder, including pledgee and
      participants, of the Note, or any other instrument secured hereby, or any
      participation. References to “foreclosure” and related phrases shall be deemed
      references to the appropriate procedure in connection with Trustee’s private
      power of sale as well as any judicial foreclosure proceeding or a conveyance
      in
      lieu of foreclosure.

    

    (e) Any
      foreclosure proceeding hereunder shall be in accordance with applicable law,
      including, without limitation, Part II, Title X, Chapter I of the California
      Code of Civil Procedure and/or Division 3, Part 4, Title XIV, Chapter 2
      (Mortgages) of the California Civil Code.

    

    (f) Notwithstanding
      any term or provision contained herein or in the Documents (including, without
      limitation Section 6.04 hereof), in no event shall Borrower be deemed to have
      waived, relinquished or otherwise restrained its right of redemption
      hereunder.

    

    (g) Borrower
      hereby agrees that this Instrument constitutes a written consent to waiver
      of
      trial by jury pursuant to the provisions of California Code of Civil Procedure
      Section 631 and Borrower does hereby constitute and appoint Lender its true
      and
      lawful attorney-in-fact, which appointment is coupled with an interest, and
      Borrower does hereby authorize and empower Lender, in the name, place and stead
      of Borrower, to file this Instrument with the clerk or judge of any court of
      competent jurisdiction as statutory written consent to waiver of trial by
      jury.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (h) Without
      limiting any of the remedies provided in the Documents, Borrower acknowledges
      and agrees that certain provisions of this Instrument are or may be
      environmental provisions, as that term is defined in Section 736(f)(2) of the
      California Code of Civil Procedure, made by the Borrower relating to the real
      property security, and that Borrower’s failure to comply with the terms of this
      Agreement is a breach of contract such that Lender shall have the remedies
      provided under Section 736 of the California Code of Civil Procedure (“Section
      736”) for the recovery of damages and for the enforcement thereof. Pursuant to
      Section 736, Lender’s action for recovery of damages or enforcement of this
      Agreement shall not constitute an action within the meaning of Section 726(a)
      of
      the California Code of Civil Procedure or constitute a money judgment for a
      deficiency or a deficiency or a deficiency judgment within the meaning of
      Sections 580a, 580b, or 726(b) of the California Code of Civil Procedure.
      Borrower agrees that Lender will have the same right, power and authority to
      enter and inspect the Property as is granted to the secured lender under Section
      2929.5 of the California Civil Code, and that Lender will have the right to
      appoint a receiver to enforce this right to enter and inspect the Property
      to
      the extent such authority is provided under California law, including, without
      limitation, the authority given to the secured lender under Section 564(c)
      of
      the California Code of Civil Procedure.

    

    (i) At
      the
      time of any foreclosure sale under the Instrument, or any deed in lieu of
      foreclosure, the Borrower shall, at Borrower's expense and without additional
      consideration to Borrower, immediately take all actions required under
      applicable laws, regulations, rules, and policies to transfer the Liquor
      Licenses to the person or entity which acquires title to the Mortgaged Property
      pursuant to such foreclosure or deed in lieu of foreclosure. Such actions shall
      include, without limitation, filing with the local division of the State of
      California Department of Alcoholic Beverage Control such affidavits,
      applications, declarations, documents and other materials to be executed or
      provided by Borrower as may be necessary or appropriate to effect such transfer,
      and Borrower shall thereafter diligently pursue such transfer in order to
      consummate the same as soon as reasonably possible. Borrower’s obligations under
      this Section 10.01(i) shall survive any foreclosure of the Instrument or
      any deed in lieu of foreclosure.

    

    ARTICLE
      XI  -
      OPERATING LEASE PROVISIONS

     

    Borrower
      hereby covenants, represents and warrants to Lender with respect to the
      Operating Lease as follows:

     

    (a)  There
      is
      and has been no default in the performance of the Operating Lease by Borrower
      nor, to the best of Borrower’s knowledge, by Operating Tenant with respect to
      the Property, nor has any event occurred or condition arisen to the best
      knowledge of Borrower which, with the passage of time, or the giving of notice,
      or both, would constitute a default under or a breach of the Operating Lease
      by
      the Borrower and or the Operating Tenant.

     

    (b)  All
      rents, additional rents, percentage rents and all other charges due and payable
      under the Operating Lease have been fully paid to the extent same were payable
      prior to the date hereof.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  Except
      as
      otherwise previously disclosed in writing by Borrower to Lender, the Operating
      Lease covers one hundred percent (100%) of the leasehold interest in and to
      the
      Property demised thereby, and Borrower is the owner of the entire tenant's
      interest in, to and under the Operating Lease and has the right and authority
      under such Operating Lease to execute this Instrument and to encumber Borrower's
      interest therein.

     

    (d)  Borrower
      shall, at its sole cost and expense, promptly and timely perform and observe
      all
      the terms, covenants and conditions required to be performed and observed by
      Borrower as landlord under the Operating Lease, and shall use its best efforts
      to cause the Operating Tenant thereunder to promptly and timely perform and
      observe all the terms, covenants and conditions required to be performed and
      observed by such Operating Tenant as tenant under the Operating Lease
      (including, but not limited to, the payment of all rent, additional rent,
      percentage rent and other charges required to be paid under the Operating
      Lease). Any default by Borrower and/or the Operating Tenant under the Operating
      Lease shall constitute a default by Borrower under this Investment.

     

    (e)  If
      Borrower and/or the Operating Tenant shall violate any of the covenants
      specified in (d) above, Borrower grants to Lender the right (but not the
      obligation), without notice to Borrower, to take any action as may be necessary
      to prevent or cure any default of Borrower and/or Operating Tenant under the
      Operating Lease, if necessary to protect Lender's interest hereunder, and Lender
      shall have the right to enter all or any portion of the Property at such times
      and in such manner as Lender deems necessary, in order to prevent or to cure
      any
      such default.

     

    (f)  The
      curing by Lender of any default by Borrower and/or Operating Tenant under the
      Operating Lease shall not remove or waive, as between Borrower and Lender,
      the
      default which occurred hereunder by virtue of the default by Borrower and/or
      Operating Tenant under such Operating Lease. All sums expended by Lender in
      order to cure any such default shall be paid by Borrower to Lender, upon demand,
      with interest thereon at the Default Rate unless prohibited by Laws. All such
      indebtedness shall be deemed to be secured by this Instrument. No action or
      payment taken or made by Lender to prevent or cure a default by Borrower and/or
      Operating Tenant under the Operating Lease shall waive or cure the corresponding
      default by Borrower under this Instrument.

     

    (g)  Borrower
      shall notify Lender promptly in writing of (i) the occurrence of any material
      default by the Operating Tenant under the Operating Lease or the occurrence
      of
      any event which, with the passage of time or service of notice, or both, would
      constitute a material default by the Operating Tenant under the Operating Lease,
      and (ii) the receipt by Borrower of any notice (written or otherwise) from
      the
      tenant under the Operating Lease noting or claiming the occurrence of any
      default by Borrower under the Operating Lease or the occurrence of any event
      which, with the passage of time or service of notice, or both, would constitute
      a default by Borrower under the Operating Lease. Borrower shall deliver to
      Lender a copy of any such written notice of default.

     

    (h)  Promptly
      upon demand by Lender from time to time, Borrower shall use reasonable efforts
      (other than payment to the landlord) to obtain from the tenant under the
      Operating Lease and furnish to Lender the estoppel certificate of such tenant
      stating the date through which rent has been paid and whether or not there
      are
      any defaults under the Operating Lease and specifying the nature of such claimed
      defaults, if any.

     

    (i)  Borrower
      shall promptly notify Lender, in writing, of any request made by either party
      to
      the Operating Lease for arbitration or appraisal proceedings pursuant to the
      Operating Lease, and of the institution of any arbitration or appraisal
      proceedings, as well as of all proceedings thereunder, and shall promptly
      deliver to Lender a copy of the determination of the arbitrators or appraisers
      in each such arbitration or appraisal proceeding. Lender shall have the right
      (but not the obligation), following the delivery of written notice of Borrower,
      to participate in the appointment of any arbitrator or appraiser to be appointed
      by Borrower and to participate in such arbitration or appraisal proceedings
      in
      association with Borrower or on its own behalf as an interested party. Borrower
      shall promptly notify Lender, in writing, of the institution of any legal
      proceedings involving obligations under the Operating Lease. Lender may
      intervene in any such legal proceedings and be made a party to them. Borrower
      shall promptly provide Lender with a copy of any decisions rendered in
      connection with such proceedings.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (j)  Borrower
      shall promptly execute, acknowledge and deliver to Lender such instruments
      as
      may reasonably be required to permit Lender to cure any default under the
      Operating Lease or permit Lender to take such other action required to enable
      Lender to cure or remedy the matter in default and preserve the security
      interest of Lender under this Instrument with respect to the Operating Lease.
      Borrower hereby irrevocably appoints Lender as its true and lawful
      attorney-in-fact to do, in its name or otherwise, any and all acts and to
      execute any and all documents which are necessary to preserve any rights of
      Borrower under or with respect to the Operating Lease, including, without
      limitation, the right to effectuate any extension or renewal of the Operating
      Lease, or to preserve any rights of Borrower whatsoever in respect of any part
      of the Operating Lease (and the above powers granted to Lender are coupled
      with
      an interest and shall be irrevocable).

     

    (k)  Borrower
      shall not, without Lender's prior written consent, surrender, terminate,
      forfeit, or suffer or permit the surrender, termination or forfeiture of, or
      change, modify or amend, the Operating Lease. Consent to one amendment, change,
      agreement or modification shall not be deemed to be a waiver of the right to
      require consent to other, future or successive amendments, changes, agreements
      or modifications.

     

    (l)  Any
      acquisition of the tenant's interest in the Operating Lease by Borrower or
      any
      affiliate of Borrower shall be accomplished by Borrower in such a manner so
      as
      to avoid a merger of the interests of the landlord and tenant in the Operating
      Lease. In the event both the landlord's and tenant's estate under the Operating
      Lease or any portion thereof which constitutes a part of the Property, shall
      at
      any time become vested in one owner, this Instrument and the lien created hereby
      shall not be destroyed or terminated by application of the doctrine of merger
      unless Lender so elects as evidenced by recording a written declaration so
      stating and, unless and until Lender so elects, Lender shall continue to have
      and enjoy all of the rights and privileges of Lender and mortgagee as to the
      separate estates. In addition, upon the foreclosure of the lien created by
      this
      Instrument on the Property pursuant to the provisions hereof, any leases or
      subleases then existing and affecting all or any portion of the Property shall
      not be destroyed or terminated by application of the law of merger or as a
      matter of law or as a result of such foreclosure unless Lender or any purchaser
      at such foreclosure shall so elect. No act by or on behalf of Lender or any
      such
      purchaser shall constitute a termination of any lease or sublease unless Lender
      or such purchaser shall give written notice thereof to such tenant or subtenant.
      

     

    (m)  Notwithstanding
      anything to the contrary herein contained with respect to the Operating
      Lease:

     

    (i)  As
      security
      for the Obligations, Borrower hereby unconditionally assigns, transfers and
      sets
      over to Lender all of Borrower’s claims and rights to the payment of damages
      arising from any rejection by Operating Tenant of the Operating Lease under
      the
      Bankruptcy Code. Lender and Borrower shall proceed jointly or in the name of
      Borrower in respect of any claim, suit, action or proceeding relating to the
      rejection of the Operating Lease, including, without limitation, the right
      to
      file and prosecute any proofs of claim, complaints, motions, applications,
      notices and other documents in any case in respect of such tenant under the
      Bankruptcy Code. This assignment constitutes a present, irrevocable and
      unconditional assignment of the foregoing claims, rights and remedies, and
      shall
      continue in effect until all of the Obligations secured by this Instrument
      shall
      have been satisfied and discharged in full. Any amounts received by Lender
      or
      Borrower as damages arising out of the rejection of the Operating Lease as
      aforesaid shall be applied first to all costs and expenses of Lender (including,
      without limitation, attorneys’ fees and costs) incurred in connection with the
      exercise of any of its rights or remedies under this Article XI and then in
      accordance with the other applicable provisions of this Instrument.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii)  If
      any
      action, proceeding, motion or notice shall be commenced or filed in respect
      of
      any Operating Tenant under the Operating Lease in connection with any case
      under
      the Bankruptcy Code, Lender and Borrower shall cooperatively conduct and control
      any such litigation with counsel agreed upon between Borrower and Lender in
      connection therewith. Borrower shall, upon demand, pay to Lender all costs
      and
      expenses (including reasonable attorneys' fees and costs) paid or incurred
      by
      Lender in connection with the cooperative prosecution or conduct of any such
      proceedings. All such costs and expenses shall be secured by the lien of this
      Instrument. Lender shall be deemed a party to the Operating Lease (but shall
      not
      have any obligations thereunder) for purposes of Section 363 and 365 of the
      Bankruptcy Code, and shall have standing to appear and act as a party in
      interest in relation to any matter arising out of or related to the Operating
      Lease or the Property.

     

    (iii)  Borrower
      shall promptly, after obtaining knowledge thereof, notify Lender orally of
      any
      filing by or against any Operating Tenant of a petition under the Bankruptcy
      Code. Borrower shall thereafter promptly give written notice of such filing
      to
      Lender, setting forth any information available to Borrower as to the date
      of
      such filing, the court in which such petition was filed, and the relief sought
      therein. Borrower shall promptly deliver to Lender, following its receipt
      thereof, any and all notices, summonses, pleadings, applications and other
      documents received by Borrower in connection with any such petition and any
      proceedings relating thereto.

     

    (n)  Borrower
      hereby grants and assigns to Lender a security interest in all prepaid rent
      and
      security deposits and all other security under the Operating Lease which
      Borrower may hold now or later for the performance of Operating Tenant’s
      obligations as the tenant under the Operating Lease.

     

    (o)  Borrower
      shall ensure that all subleases entered into by any Operating Tenant (and all
      existing subleases modified or amended by Operating Tenant) shall provide that
      such subleases are subordinate to the lien of this Instrument and any
      extensions, replacements and modifications of this Instrument and the
      Obligations.

     

    (p)  The
      Operating Lease has not been amended, modified, extended, renewed, substituted
      or assigned, and Borrower has delivered to Lender true, accurate and complete
      copy of the Operating Lease. Upon the request of Lender, Borrower shall deposit
      with Lender an original fully executed counterpart of the Operating Lease,
      as
      further security to the Lender, until all of the Obligations are fully paid
      and
      performed. Borrower hereby represents that the Operating Lease or a legally
      valid memorandum thereof has been properly filed or recorded in the city, town,
      county or parish records (as appropriate) in which the Land covered thereby
      is
      located and that the filing and recording data for the same is accurately set
      forth in Exhibit
      A
      attached
      hereto.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (q)  Borrower
      shall not waive, excuse, condone or in any way release or discharge the
      Operating Tenant under the Operating Lease or such Operating Tenant’s
      obligations, covenants and/or conditions under the Operating Lease without
      the
      prior written consent of Lender.

     

    The
      generality of the provisions of this Article XI relating to the Operating Lease
      shall not be limited by other provisions of this Instrument setting forth
      particular obligations of Borrower which are also required of Borrower with
      respect to the Land.

     

    (No
      further text on this page)

     

    (Signature
      page follows)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      undersigned has executed this Instrument as of the day first set forth
      above.      

     

    
      	 	
              CM
                HOTEL PARTNERS, LP,

               

              a
                Delaware limited partnership

               

            
	 	
              By: 
                CM HOTEL GP, LLC,

               

              a
                Delaware limited liability company

               

              Its:
                General Partner

               

            
	 	
              By: /s
                /  John X. Brady     

               

              Name:
                John X. Brady, Jr.

               

              Title:
                Vice President

               

            

    

    

    WITNESSED
      BY:

    

    

    By:
/
      s/ Cathleen A. Coffey

    Print
      Name: Cathleen A. Coffey

    

    

    

    WITNESSED
      BY:

    

    

    By:
      /s/ Patti Cook

    Print
      Name: Patti Cook

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ACKNOWLEDGMENT

    STATE
      OF Florida    

    

    COUNTY
      OF
Orange     

    

    The
      foregoing instrument was acknowledged before me this 23 day of
March, 2006, by John X. Brady, Jr., as Vice President of CM
      Hotel GP LLC, a Delaware LLC, on behalf of such entity. He/she is
      either personally known to me, or has produced a ____________________________
      driver’s license as identification.

    

     

    /s/
      Cathleen A. Coffey

    Printed
      Name: Cathleen A. Coffey

    NOTARY
      PUBLIC

    State
      of
FL at Large

    (Notarial
      Seal)

    My
      Commission Expires: September 24, 2009

    

    

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

           

        

      

    

    Exhibit
      A

     

    LEGAL
      DESCRIPTION OF THE PROPERTY

     

    All
      that
      certain real property located in the City of Costa Mesa, County of Orange,
      State
      of California described as follows:

     

    PARCEL
      A:

     

    PARCEL
      3
      OF PARCEL MAP NO. 83-382, AS SHOWN ON A MAP FILED IN BOOK 185, PAGES 19, 20
      AND
      21 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID
      COUNTY.

     

    PARCEL
      B:

     

    A
      RECIPROCAL NON-EXCLUSIVE PERPETUAL EASEMENT FOR PEDESTRIAN AND VEHICULAR INGRESS
      AND EGRESS, UTILITIES AND OVERFLOW PARKING OF VEHICLES, AS SET FORTH IN THAT
      CERTAIN AMENDED AND RESTATED HOTEL RECIPROCAL EASEMENT AGREEMENT, RECORDED
      DECEMBER 24, 1987 AS INSTRUMENT NO. 87-708558 OF OFFICIAL RECORDS OF ORANGE
      COUNTY, CALIFORNIA, AND AS AMENDED BY THAT CERTAIN AMENDMENT No. 1 TO AMENDED
      AND RESTATED HOTEL RECIPROCAL EASEMENT AGREEMENT, RECORDED JULY 29, 1988 AS
      INSTRUMENT NO. 88-367953 OF SAID OFFICIAL RECORDS.

     

    PARCEL
      C:

     

    A
      NON-EXCLUSIVE EASEMENT FOR PURPOSES OF PURPOSES OF PARKING AUTOMOBILES AT ALL
      TIMES OTHER THAN DURING NORMAL BUSINESS HOURS DEFINED THEREIN AS MONDAY THROUGH
      FRIDAY BETWEEN THE HOURS OF 7:00 AM AND 6:00 PM, TOGETHER WITH VEHICULAR AND
      PEDESTRIAN INGRESS AND EGRESS THERETO, AS SET FORTH IN THAT CERTAIN RECIPROCAL
      PARKING AGREEMENT, RECORDED MARCH 07, 1991 AS INSTRUMENT NO. 91-104643 OF
      OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA, OVER THAT PORTION OF PARCEL
      2 OF
      PARCEL MAP NO. 83-382, AS SHOWN ON A MAP FILED IN BOOK 185, PAGES 19, 20 AND
      21
      OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED
      AS FOLLOWS:

     

    BEGINNING
      AT THE SOUTHWESTERLY CORNER OF PARCEL 2 OF SAID PARCEL MAP NO. 83-382; THENCE
      ALONG THE SOUTHERLY BOUNDARY LINE OF PARCEL 2 OF SAID PARCEL MAP, SOUTH 89° 06'
      09" EAST 93.00 FEET; THENCE ALONG THE EASTERLY BOUNDARY LINE OF PARCEL 2 OF
      SAID
      PARCEL MAP, NORTH 00° 53' 51" EAST 29.00 FEET TO THE TRUE POINT OF BEGINNING;
      THENCE CONTINUING ALONG SAID LINE, NORTH 00° 53' 51" EAST 131.00 FEET TO A POINT
      ON A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 12.00 FEET, A RADIAL LINE
      THROUGH SAID POINT BEARS NORTH 89° 06' 09" WEST; THENCE SOUTHERLY ALONG SAID
      CURVE THROUGH A CENTRAL ANGLE OF 90° 00' 00" AN ARC DISTANCE OF 18.85 FEET;
      THENCE NORTH 89° 06' 09" WEST 51.00 FEET; THENCE SOUTH 00° 53 ' 51" WEST 125.00
      FEET; THENCE SOUTH 89° 06' 09" EAST 57.00 FEET TO A POINT ON A TANGENT CURVE
      CONCAVE NORTHWESTERLY HAVING A RADIUS OF 6.00 FEET; THENCE NORTHERLY ALONG
      SAID
      CURVE THROUGH A CENTRAL ANGLE OF 90° 00' 00" AN ARC DISTANCE OF 9.42 FEET TO THE
      TRUE POINT OF BEGINNING.

     

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      B

     

    DESCRIPTION
      OF PERSONAL PROPERTY SECURITY

     

    1. All
      existing and future machinery, apparatus, goods (including, without limitation,
      consumables and inventory), equipment, materials, fittings, fixtures, chattels,
      and tangible personal property, and all appurtenances and additions thereto
      and
      betterments, renewals, substitutions, and replacements thereof, owned by
      Borrower, wherever situate, and now or hereafter located on, attached to,
      contained in, or used or usable in connection with the real property described
      in Exhibit
      A
      attached
      hereto and incorporated herein (the “Land”),
      and
      all improvements located thereon (the “Improvements”)
      or
      placed on any part thereof, though not attached thereto, including, without
      limitation, all existing and future goods, materials, supplies, chattels,
      appliances, furniture, furnishings, televisions, radios, fixtures, equipment
      (including, without limitation, Borrower’s rights as lessee under leases of
      appliances, furniture, furnishings, fixtures and equipment), building service
      equipment, building materials and machinery, of every nature whatsoever now
      owned or later to be owned by Borrower, and attached or to be attached or
      affixed to, placed in or on or used in connection with the use, enjoyment,
      occupancy or operation of all or any part of the Property or in any restaurant,
      bar, conference or retail facilities thereon, whether stored on the Property
      or
      elsewhere, and including any of the foregoing as may be held in storage, or
      in
      transit or otherwise earmarked for the Property or any other such facilities,
      including, but not limited to, all signs (whether detachable or affixed),
      pumping plants, engines, pipes, ditches and flumes; also all gas, electric,
      power, cooking, heating, cooling, air conditioning, lighting, laundry,
      refrigeration, incinerating and plumbing fixtures and equipment; also all pumps,
      tanks, motors, conduits, lifting, cleaning, fire prevention, fire extinguishing,
      ventilating, switchboards and communications apparatuses; also all elevators,
      escalators and related machinery and equipment; also all shades, awnings,
      blinds, curtains, drapes and attached and unattached floor coverings, including
      rugs and carpeting; also all television, radio and music cable antennae systems;
      also all screens, storm doors and windows; also all stoves, refrigerators,
      dishwashers and other appliances, attached cabinets, partitions, ducts and
      compressors; also all trees, plants and other items of landscaping; also all
      shuttle buses and vehicles of any nature whatsoever; also all visual and
      electronic surveillance systems, beds, dressers, cabinets, tables, chairs,
      mirrors, desks, wall coverings, clocks, lamps, televisions, radios, telephones,
      minibars, intercoms, blankets, linens, towels, pillows and bedspreads; also
      all
      kitchen, restaurant and other operating equipment, including, but not limited
      to, menus, dishes, china, silverware, glassware, uniforms, aprons, cooking
      utensils, tables, refrigerating units, stoves, microwave equipment, ovens,
      timers, cocktail lounge supplies, bars and bottles; also all food and beverages,
      fuel, soap, shampoos and lotions, all cleaning materials, matches, stationary
      and other crested or similar items; also all chaise lounges, swimming pool
      heaters and equipment, recreational equipment and maintenance supplies; and
      also
      all office supplies, telephones, facsimile machines, all other electronic
      communication systems and all security deposits relating to all of the
      foregoing.

     

    2. All
      existing and future funds, accounts, deposits, instruments, drafts, letters
      of
      credit, documents, contract rights including, without limitation, all management
      agreements and franchise agreements, advance reservation contracts, general
      intangibles, notes, letters of credit in favor of Lender, and chattel paper
      arising from or by virtue of any transaction related to the Land, the
      Improvements, or any of the personal property described in this Exhibit
      B,
      including, without limitation, the FF&E Reserve that is established and
      funded from and after the date of this Instrument pursuant to the Pledge
      Agreement, operating accounts and reserve accounts, all checking accounts,
      time
      deposit accounts, interest bearing demand deposit accounts, non-interest bearing
      demand deposit accounts, management accounts, and all other accounts, and all
      now existing or hereafter arising rights of Borrower associated with the
      operation of the Property and any facilities on the Property or payment for
      rental of rooms, banquet rooms, conference rooms or other space or for goods
      sold or leased or for services rendered, whether or not yet earned by
      performance, including, without limiting the generality of the foregoing, all
      account receivables, all rights to payment from any third party, including,
      without limitation, any consumer credit/charge card organization or entity
      (including, without limitation, payments arising from use of the American
      Express Card, the Visa Card, the Carte Blanche Card, the Diners Club Card,
      the
      MasterCard, the Discover Card or any other credit, travel, and entertainment
      or
      similar card), reserves, deferred payments, refunds, cost savings, payments
      and
      deposits, no matter how evidenced and whether now or later to be received from
      third parties (including all earnest money sales or rental deposits) or
      deposited by Borrower with third parties (including all utility deposits),
      chattel paper, instruments, documents, notes, drafts and letters of credit
      (other than letters of credit in favor of Lender, if any), which arise from
      or
      relate to any business or operations now or later to be conducted on the
      Property, or to the Property and to all contracts and agreements which relate
      to
      the foregoing.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. All
      existing and future permits, licenses (including, but not limited to, any
      operating licenses and liquor licenses), franchises, certificates, and other
      rights and privileges now held or hereafter acquired by Borrower in connection
      with the Land, the Improvements, or any of the personal property described
      in
      this Exhibit
      B,
      including, without limitation, all existing and future general intangibles
      relating to the entitlements, development, construction, ownership, use,
      occupancy or operation of the Property thereon, including, but not limited
      to,
      all governmental permits, licenses, applications, management agreements and
      all,
      franchise agreements, governmental licenses, permits, variances, approvals,
      agreements, authorizations and land use entitlements relating to construction
      on
      the Property or relating to the use or operation of the Property or any
      restaurant, bar, conference, retail and computer or computer related facilities
      thereon (including, without limitation, any and all liquor licenses); all
      warranties and guaranties for the Property; all contracts, contract rights,
      agreements, commitments, undertakings and arrangements relating to the
      construction, construction management, use, operation or management of the
      Property or any business on the Property (including, without limitation, any
      maintenance, repair or other service contracts relating to the Property, and
      any
      modification, replacement, renewal or extension thereof); and all 1-800 and
      other telephone numbers, as well as related intangible assets.

     

    4. All
      existing and future right, title, and interest of Borrower in and to the name
      and style by which the Land and/or the Improvements is known, including
      trademarks and trade names relating thereto.

     

    5. All
      existing and future right, title, and interest of Borrower in, to, and under
      all
      architectural and engineering plans, specifications, drawings, maps, surveys,
      reports, permits, licenses, architectural, engineering and construction
      contracts, books of account, insurance policies, and other documents of whatever
      kind or character, relating to the use, construction upon, occupancy, leasing,
      sale, or operation of the Land and/or the Improvements.

     

    6. All
      existing and future interests, estates, or other claims or demands, in law
      and
      in equity, which Borrower now has or may hereafter acquire in the Land, the
      Improvements, or the personal property described in this Exhibit
      B.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7. All
      existing and future right, title, and interest owned by Borrower in and to
      all
      options to purchase or lease the Land, the Improvements, or any other personal
      property described in this Exhibit
      B,
      or any
      portion thereof or interest therein, and in and to any greater estate in the
      Land, the Improvements, or any of the personal property described in this
Exhibit
      B.

     

    8. All
      of
      the estate, interest, right, title, other claim or demand, both in law and
      in
      equity, including claims or demands with respect to the proceeds of insurance
      relating thereto, which Borrower now has or may hereafter acquire in the Land,
      the Improvements, or any of the personal property described in this Exhibit
      B,
      or any
      portion thereof or interest therein, and any and all awards made for the taking
      by eminent domain, or by any proceeding or purchase in lieu thereof, of the
      whole or any part of such property, including without limitation, any award
      resulting from a change of any streets (whether as to grade, access, or
      otherwise) and any award for severance damages.

     

    9. All
      existing and future right, title, and interest of Borrower in and to all
      contracts, permits, certificates, licenses, approvals, utility deposits, utility
      capacity, and utility rights issued, granted, agreed upon, or otherwise provided
      by any governmental or private authority, person or entity relating to the
      ownership, development, construction, operation, maintenance, marketing, sale,
      or use of the Land and/or the Improvements, including all of the Borrower’s
      rights and privileges hereto or hereafter otherwise arising in connection with
      or pertaining to the Land and/or the Improvements, including, without limiting
      the generality of the foregoing, all water and/or sewer capacity, all water,
      sewer and/or other utility deposits or prepaid fees, and/or all water and/or
      sewer and/or other utility tap rights or other utility rights, any right or
      privilege of Borrower under any loan commitment, lease, contract, Declaration
      of
      Covenants, Restrictions and Easements or like instrument, Developer’s Agreement,
      or other agreement with any third party pertaining to the ownership,
      development, construction, operation, maintenance, marketing, sale, or use
      of
      the Land and/or the Improvements. 

     

    10.
       All
      existing and future right, title and interest of Borrower in and to all building
      materials, equipment, work in progress, and other personal property of any
      kind,
      whether stored on the Land or elsewhere, which have been or later will be
      acquired for the purpose of being delivered to, incorporated into, or installed
      in or about the Land or Improvements.

     

    AND
      ALL
      PROCEEDS AND PRODUCTS OF THE FOREGOING PERSONAL PROPERTY DESCRIBED IN THIS
      EXHIBIT
      B.

     

    A
      PORTION
      OF THE ABOVE DESCRIBED GOODS ARE OR ARE TO BE AFFIXED TO THE REAL PROPERTY
      DESCRIBED IN EXHIBIT
      A.

     

    THE
      BORROWER IS THE RECORD TITLE HOLDER AND OWNER OF THE REAL PROPERTY DESCRIBED
      IN
EXHIBIT
      A.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

           

        

      

    

    Exhibit
      C

     

    PERMITTED
      ENCUMBRANCES

     

    Those
      certain exceptions to title as specifically set forth in Schedule B, Part I,
      of
      that certain Pro Forma Title Policy dated April 3, 2006 issued by First American
      Title Insurance Company respecting the Property, Order/File No.
      TCS-198384a-ORL.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

           

        

      

    

    Exhibit
      D

     

    DOCUMENTS

     

    
      	1.  	
              Promissory
                Note dated April 3, 2006, by PH Hotel Partners, LP, AH Hotel Partners,
                LP,
                HMA Hotel Partners, LP, and CM Hotel Partners,
                LP

            

    

     

    
      	2.  	
              Deed
                of Trust and Security Agreement (PH) dated April 3, 2006, granted
                by PH
                Hotel Partners, LP

            

    

     

    
      	3.  	
              Mortgage
                (AH) dated April 3, 2006, granted by AH Hotel Partners,
                LP

            

    

     

    
      	4.  	
              Mortgage
                and Security Agreement (HMA) dated April 3, 2006, granted by HMA
                Hotel
                Partners, LP

            

    

     

    
      	5.  	
              Deed
                of Trust and Security Agreement (CM) dated April 3, 2006, granted
                by CM
                Hotel Partners, LP

            

    

     

    
      	6.  	
              Assignment
                of Leases and Rents (PH) dated April 3, 2006, by PH Hotel Partners,
                LP

            

    

     

    
      	7.  	
              Assignment
                of Leases and Rents (AH) dated April 3, 2006, by AH Hotel Partners,
                LP

            

    

     

    
      	8.  	
              Assignment
                of Leases and Rents (HMA) dated April 3, 2006, by HMA Hotel Partners,
                LP

            

    

     

    
      	9.  	
              Assignment
                of Leases and Rents (CM) dated April 3, 2006, by CM Hotel Partners,
                LP

            

    

     

    
      	10.  	
              Assignment
                of Agreements (PH) dated April 3, 2006, by PH Hotel Partners,
                LP

            

    

     

    
      	11.  	
              Assignment
                of Agreements (AH) dated April 3, 2006, by AH Hotel Partners,
                LP

            

    

     

    
      	12.  	
              Assignment
                of Agreements (HMA) dated April 3, 2006, by HMA Hotel Partners,
                LP

            

    

     

    
      	13.  	
              Assignment
                of Agreements (CM) dated April 3, 2006, by CM Hotel Partners,
                LP

            

    

     

    
      	14.  	
              Pledge
                Agreement (PH) dated April 3, 2006, by AH Tenant Corporation and
                PH Hotel
                Partners, LP

            

    

     

    
      	15.  	
              Pledge
                Agreement (AH) dated April 3, 2006, by AH Tenant Corporation and
                AH Hotel
                Partners, LP

            

    

     

    
      	16.  	
              Pledge
                Agreement (HMA) dated April 3, 2006, by AH Tenant Corporation and
                HMA
                Hotel Partners, LP

            

    

     

    
      	17.  	
              Pledge
                Agreement (CM) dated April 3, 2006, by AH Tenant Corporation and
                CM Hotel
                Partners, LP

            

    

     

    
      	18.  	
              Environmental
                and ERISA Indemnity (PH) dated April 3, 2006, by PH Hotel Partners,
                LP,
                CNL Hospitality Partners, LP, and Hilton Hotels
                Corporation

            

    

     

    
      	19.  	
              Environmental
                and ERISA Indemnity (AH) dated April 3, 2006, by AH Hotel Partners,
                LP,
                CNL Hospitality Partners, LP, and Hilton Hotels
                Corporation

            

    

     

    
      	20.  	
              Environmental
                and ERISA Indemnity (HMA) dated April 3, 2006, by HMA Hotel Partners,
                LP,
                CNL Hospitality Partners, LP, and Hilton Hotels
                Corporation

            

    

     

    
      	21.  	
              Environmental
                and ERISA Indemnity (CM) dated April 3, 2006, by CM Hotel Partners,
                LP,
                CNL Hospitality Partners, LP, and Hilton Hotels
                Corporation

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	22.  	
              Land
                Use Certification (PH) dated April 3, 2006, by PH Hotel Partners,
                LP

            

    

     

    
      	23.  	
              Land
                Use Certification (AH) dated April 3, 2006, by AH Hotel Partners,
                LP

            

    

     

    
      	24.  	
              Land
                Use Certification (HMA) dated April 3, 2006, by HMA Hotel Partners,
                LP

            

    

     

    
      	25.  	
              Land
                Use Certification (CM) dated April 3, 2006, by CM Hotel Partners,
                LP

            

    

     

    
      	26.  	
              ERISA
                Certification dated April 3, 2006, by PH Hotel Partners,
                LP

            

    

     

    
      	27.  	
              ERISA
                Certification dated April 3, 2006, by PH Hotel GP,
                LLC

            

    

     

    
      	28.  	
              ERISA
                Certification dated April 3, 2006, by AH Hotel Partners,
                LP

            

    

     

    
      	29.  	
              ERISA
                Certification dated April 3, 2006, by AH Hotel GP,
                LLC

            

    

     

    
      	30.  	
              ERISA
                Certification dated April 3, 2006, by AH Tenant
                Corporation

            

    

     

    
      	31.  	
              ERISA
                Certification dated April 3, 2006, by HMA Hotel Partners,
                LP

            

    

     

    
      	32.  	
              ERISA
                Certification dated April 3, 2006, by HMA Hotel GP,
                LLC

            

    

     

    
      	33.  	
              ERISA
                Certification dated April 3, 2006, by CM Hotel Partners,
                LP

            

    

     

    
      	34.  	
              ERISA
                Certification dated April 3, 2006, by CM Hotel GP,
                LLC

            

    

     

    
      	35.  	
              ERISA
                Certification dated April 3, 2006, by CNL HHC Partners,
                LP

            

    

     

    
      	36.  	
              ERISA
                Certification dated April 3, 2006, by CNL Hospitality Partners,
                LP

            

    

     

    
      	37.  	
              ERISA
                Certification dated April 3, 2006, by CNL HHC,
                LLC

            

    

     

    
      	38.  	
              ERISA
                Certification dated April 3, 2006, by CNL Hotels & Resorts,
                Inc.

            

    

     

    
      	39.  	
              ERISA
                Certification dated April 3, 2006, by CNL Hospitality GP
                Corp.

            

    

     

    
      	40.  	
              ERISA
                Certification dated April 3, 2006, by Hilton Hotels
                Corporation

            

    

     

    
      	41.  	
              UCC-1
                Financing Statement (PH) PH Hotel Partners, LP (filed in
                Delaware)

            

    

     

    
      	42.  	
              UCC-1
                Financing Statement (PH) PH Hotel Partners, LP (recorded in
                Oregon)

            

    

     

    
      	43.  	
              UCC-1
                Financing Statement (PH) AH Tenant Corporation (filed in
                Delaware)

            

    

     

    
      	44.  	
              UCC-1
                Financing Statement (PH) AH Tenant Corporation (recorded in
                Oregon)

            

    

     

    
      	45.  	
              UCC-1
                Financing Statement (AH) AH Hotel Partners, LP (filed in
                Delaware)

            

    

     

    
      	46.  	
              UCC-1
                Financing Statement (AH) AH Hotel Partners, LP (recorded in
                Michigan)

            

    

     

    
      	47.  	
              UCC-1
                Financing Statement (AH) AH Tenant Corporation (filed in
                Delaware)

            

    

     

    
      	48.  	
              UCC-1
                Financing Statement (AH) AH Tenant Corporation (recorded in
                Michigan)

            

    

     

    
      	49.  	
              UCC-1
                Financing Statement (HMA) HMA Hotel Partners, LP (filed in
                Delaware)

            

    

     

    
      	50.  	
              UCC-1
                Financing Statement (HMA) HMA Hotel Partners, LP (recorded in
                Florida)

            

    

     

    
      	51.  	
              UCC-1
                Financing Statement(HMA) AH Tenant Corporation (filed in
                Delaware)

            

    

     

    
      	52.  	
              UCC-1
                Financing Statement(HMA) AH Tenant Corporation (recorded in
                Florida)

            

    

     

    
      	53.  	
              UCC-1
                Financing Statement (CM) CM Hotel Partners, LP (filed in
                Delaware)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	54.  	
              UCC-1
                Financing Statement (CM) CM Hotel Partners, LP (recorded in
                California)

            

    

     

    
      	55.  	
              UCC-1
                Financing Statement (CM) AH Tenant Corporation (filed in
                Delaware)

            

    

     

    
      	56.  	
              UCC-1
                Financing Statement (CM) AH Tenant Corporation (recorded in
                California)

            

    

     

    
      	57.  	
              Recourse
                Liabilities Guaranty dated April 3, 2006, by Hilton Hotels Corporation
                and
                CNL Hospitality Partners, LP

            

    

     

    
      	58.  	
              Estoppel
                Certificate Operating Lease (PH) dated April 3, 2006, by AH Tenant
                Corporation and PH Hotel Partners,
                LP

            

    

     

    
      	59.  	
              Estoppel
                Certificate Operating Lease (AH) dated April 3, 2006, by AH Tenant
                Corporation and AH Hotel Partners,
                LP

            

    

     

    
      	60.  	
              Estoppel
                Certificate Operating Lease (HMA) dated April 3, 2006, by AH Tenant
                Corporation and HMA Hotel Partners,
                LP

            

    

     

    
      	61.  	
              Estoppel
                Certificate Operating Lease (CM) dated April 3, 2006, by AH Tenant
                Corporation and CM Hotel Partners,
                LP

            

    

     

    
      	62.  	
              Subordination
                Agreement (PH) dated April 3, 2006, by AH Tenant Corporation and
                PH Hotel
                Partners, LP

            

    

     

    
      	63.  	
              Subordination
                Agreement (AH) dated April 3, 2006, by AH Tenant Corporation and
                AH Hotel
                Partners, LP

            

    

     

    
      	64.  	
              Subordination
                Agreement (HMA) dated April 3, 2006, by AH Tenant Corporation and
                HMA
                Hotel Partners, LP

            

    

     

    
      	65.  	
              Subordination
                Agreement (CM) dated April 3, 2006, by AH Tenant Corporation and
                CM Hotel
                Partners, LP

            

    

     

    
      	66.  	
              Manager’s
                Consent and Subordination (PH) dated April 3, 2006, by Promos Hotels,
                Inc.

            

    

     

    
      	67.  	
              Manager’s
                Consent and Subordination (AH) dated April 3, 2006, by Hilton Suites,
                Inc.

            

    

     

    
      	68.  	
              Manager’s
                Consent and Subordination (HMA) dated April 3, 2006, by Hilton Hotels
                Corporation

            

    

     

    
      	69.  	
              Manager’s
                Consent and Subordination (CM) dated April 3, 2006, by Hilton Hotels
                Corporation

            

    

     

    
      	70.  	
              Lessee
                Security Agreement (PH) dated April 3, 2006, by AH Tenant
                Corporation

            

    

     

    
      	71.  	
              Lessee
                Security Agreement (AH) dated April 3, 2006, by AH Tenant
                Corporation

            

    

     

    
      	72.  	
              Lessee
                Security Agreement (HMA) dated April 3, 2006, by AH Tenant
                Corporation

            

    

     

    
      	73.  	
              Lessee
                Security Agreement (CM) dated April 3, 2006, by AH Tenant
                Corporation

            

    

     

    
      	74.  	
              Embassy
                Suites Comfort Letter (PH) dated April 3, 2006 by Promos Hotels,
                Inc.

            

    

     

    
      	75.  	
              Partnership
                Certificate dated April 3, 2006, respecting PH Hotel Partners,
                LP

            

    

     

    
      	76.  	
              Partnership
                Certificate dated April 3, 2006, respecting AH Hotel Partners,
                LP

            

    

     

    
      	77.  	
              Partnership
                Certificate dated April 3, 2006, respecting HMA Hotel Partners,
                LP

            

    

     

    
      	78.  	
              Partnership
                Certificate dated April 3, 2006, respecting CM Hotel Partners,
                LP

            

    

     

    
      	79.  	
              Partnership
                Certificate dated April 3, 2006, respecting CNL Hospitality Partners,
                LP

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	80.  	
              Partnership
                Certificate dated April 3, 2006, respecting CNL HHC Partners,
                LP

            

    

     

    
      	81.  	
              Corporate
                Certificate dated April 3, 2006, respecting AH Tenant
                Corporation

            

    

     

    
      	82.  	
              Corporate
                Certificate dated April 3, 2006, respecting Hilton Hotels
                Corporation

            

    

     

    
      	83.  	
              Corporate
                Certificate dated April 3, 2006, respecting CNL Hospitality GP
                Corp.

            

    

     

    
      	84.  	
              LLC
                Certificate dated April 3, 2006, respecting CNL HHC,
                LLC

            

    

     

    
      	85.  	
              LLC
                Certificate dated April 3, 2006, respecting AH Hotel GP,
                LLC

            

    

     

    
      	86.  	
              LLC
                Certificate dated April 3, 2006, respecting PH Hotel GP,
                LLC

            

    

     

    
      	87.  	
              LLC
                Certificate dated April 3, 2006, respecting HMA Hotel GP,
                LLC

            

    

     

    
      	88.  	
              LLC
                Certificate dated April 3, 2006, respecting CM Hotel GP,
                LLC

            

    

     

    
      	89.  	
              Cash
                Management/Clearing Account Agreements (if any)
                (PH)

            

    

     

    
      	90.  	
              Cash
                Management/Clearing Account Agreements (if any)
                (AH)

            

    

     

    
      	91.  	
              Cash
                Management/Clearing Account Agreements (if any)
                (HMA)

            

    

     

    
      	92.  	
              Cash
                Management/Clearing Account Agreements (if any)
                (CM)

            

    

     

    
      	93.  	
              Anti-Coercion
                Statement (PH) dated April 3, 2006 by PH Hotel Partners,
                LP

            

    

     

    
      	94.  	
              Anti-Coercion
                Statement (AH) dated April 3, 2006 by AH Hotel Partners,
                LP

            

    

     

    
      	95.  	
              Anti-Coercion
                Statement (HMA) dated April 3, 2006 by HMA Hotel Partners,
                LP

            

    

     

    
      	96.  	
              Anti-Coercion
                Statement (CM) dated April 3, 2006 by CM Hotel Partners,
                LP

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]