Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

Exhibit 10.30    
    

 

  
    FORM OF LOAN AGREEMENT

(SEVENTH MEZZANINE LOAN)

Dated
as of December 21, 2007 

Among 

HCR VII PROPERTIES, LLC,

as Borrower 

and 

JPMORGAN CHASE BANK, N.A.,

as Lender 

ADJUSTABLE RATE MULTI-PROPERTY LOAN

(MANOR CARE HEALTH CARE PORTFOLIO)

 

 

 

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	I    DEFINITIONS; PRINCIPLES OF CONSTRUCTION	 	 
	

Section 1.1	
 	

Definitions	
 	

3
	Section 1.2	 	Principles of Construction	 	35
	
 II    GENERAL TERMS	
 	

 
	

Section 2.1	
 	

Loan Commitment; Disbursement to Borrower	
 	

35
	Section 2.2	 	Interest Rate	 	36
	Section 2.3	 	Loan Payment	 	42
	Section 2.4	 	Prepayments	 	43
	Section 2.5	 	Substitution of Properties	 	46
	Section 2.6	 	Release of Collateral	 	48
	Section 2.7	 	Cash Management	 	50
	
 III    INTENTIONALLY OMITTED	
 	

 
	
 IV    REPRESENTATIONS AND WARRANTIES	
 	

 
	

Section 4.1	
 	

Borrower Representations	
 	

51
	Section 4.2	 	Health Care Representations	 	60
	Section 4.3	 	Survival of Representations	 	60
	
 V    BORROWER COVENANTS	
 	

 
	

Section 5.1	
 	

Affirmative Covenants	
 	

60
	Section 5.2	 	Negative Covenants	 	75
	
 VI    INSURANCE; CASUALTY; CONDEMNATION	
 	

 
	

Section 6.1	
 	

Insurance	
 	

85
	Section 6.2	 	Casualty	 	85
	Section 6.3	 	Condemnation	 	86
	Section 6.4	 	Restoration	 	86
	
 VII    RESERVE FUNDS	
 	

 
	

Section 7.1	
 	

Low DSCR Reserve Funds	
 	

87
	Section 7.2	 	Tax and Insurance Reserve Funds	 	87
	Section 7.3	 	Intentionally Omitted	 	88
	Section 7.4	 	Intentionally Omitted	 	89
	Section 7.5	 	Reserve Funds, Generally	 	89
	Section 7.6	 	Letters of Credit	 	90
	Section 7.7	 	Provisions Regarding Letters of Credit	 	91
	Section 7.8	 	Transfer of Reserve Funds Under Mortgage Loan	 	91
	
 VIII    DEFAULTS	
 	

 
	

Section 8.1	
 	

Event of Default	
 	

92
	Section 8.2	 	Remedies	 	95
	Section 8.3	 	Remedies Cumulative; Waivers	 	97
	
 IX    SPECIAL PROVISIONS	
 	

 
	

Section 9.1	
 	

Sale of Notes and Securitization	
 	

97
	Section 9.2	 	Securitization Indemnification	 	100

i

 

	Section 9.3	 	Exculpation	 	102
	Section 9.4	 	Servicer	 	104
	Section 9.5	 	Component Notes	 	105
	Section 9.6	 	Mezzanine Loans	 	105
	Section 9.7	 	Administration of Bankruptcy Claims	 	106
	Section 9.8	 	Uncross of Properties	 	107
	
 X    MISCELLANEOUS	
 	

 
	

Section 10.1	
 	

Survival	
 	

107
	Section 10.2	 	Lender's Discretion	 	107
	Section 10.3	 	Governing Law	 	107
	Section 10.4	 	Modification, Waiver in Writing	 	108
	Section 10.5	 	Delay Not a Waiver	 	109
	Section 10.6	 	Notices	 	109
	Section 10.7	 	Trial by Jury	 	110
	Section 10.8	 	Headings	 	110
	Section 10.9	 	Severability	 	110
	Section 10.10	 	Preferences	 	110
	Section 10.11	 	Waiver of Notice	 	110
	Section 10.12	 	Remedies of Borrower	 	111
	Section 10.13	 	Expenses; Indemnity	 	111
	Section 10.14	 	Schedules Incorporated	 	112
	Section 10.15	 	Offsets, Counterclaims and Defenses	 	112
	Section 10.16	 	No Joint Venture or Partnership; No Third Party Beneficiaries	 	112
	Section 10.17	 	Publicity	 	113
	Section 10.18	 	Cross-Default; Cross-Collateralization; Waiver of Marshalling of Assets	 	113
	Section 10.19	 	Waiver of Counterclaim	 	113
	Section 10.20	 	Conflict; Construction of Documents; Reliance	 	113
	Section 10.21	 	Brokers and Financial Advisors	 	114
	Section 10.22	 	Prior Agreements	 	114
	Section 10.23	 	Authority to File	 	114
	Section 10.24	 	Agent's Register	 	114
	Section 10.25	 	Disclosure	 	115
	Section 10.26	 	Pledges	 	115
	Section 10.27	 	Lender; Collateral Agent	 	115
	Section 10.28	 	Certain Additional Rights of Lender (VCOC)	 	115
	Section 10.29	 	Lost Note	 	116
	Section 10.30	 	Maryland Owner	 	116
	Section 10.31	 	Tax Election	 	116
	
 XI    OKLAHOMA FACILITIES	
 	

 
	

Section 11.1	
 	

Definitions	
 	

116
	Section 11.2	 	Representations and Warranties	 	117
	Section 11.3	 	Covenants	 	117
	Section 11.4	 	Relationship to Other Provisions	 	118

ii

 

SCHEDULES  

	Schedule I	—	 	Mortgage Borrowers, Individual Properties, Individual Leasehold Properties, Type of Facility and Allocated Loan Amounts
	Schedule II	—	 	Ground Leases
	Schedule III	—	 	Operators
	Schedule IV	—	 	Maryland Properties
	Schedule V	—	 	South Carolina Property
	Schedule 2.2.9	—	 	Section 2.2.9 Certificate
	Schedule 4.1.1	—	 	Organizational Structure
	Schedule 4.1.4	—	 	Litigation
	Schedule 4.1.16	—	 	Exceptions to Separate Tax Lots
	Schedule 4.1.20	—	 	Insurance Claims
	Schedule 4.1.26	—	 	Leases
	Schedule 4.1.28	—	 	Principal Place of Business and Jurisdiction of Organization
	Schedule 4.1.39	—	 	Exceptions with respect to Ground Leases
	Schedule 5.1.11(c)	—	 	Financial Reports
	Schedule 5.1.11(f)	—	 	Quarterly CapEx Budget
	Schedule 5.1.26	—	 	Zoning Matters
	Schedule 9.1(a)(iii)	—	 	Matters Covered by 10b-5 Opinion
	Schedule 10.23	—	 	Financing Statement
	Schedule 10.25	—	 	Portfolio Metrics

iii

  FORM OF LOAN AGREEMENT

(SEVENTH MEZZANINE LOAN)  

        THIS LOAN AGREEMENT (SEVENTH MEZZANINE LOAN), dated as of December 21, 2007 (as amended, restated,
replaced, supplemented or otherwise modified from time to time, this "Agreement"), by and between JPMORGAN CHASE BANK,
N.A., a banking association chartered under the laws of the United States of America, having an address at 270 Park Avenue, New York, New York 10017-2014 (in its
capacity as collateral agent, for itself and any other Noteholder (as defined below), together with its successors and assigns in such capacity,
"Lender") and HCR VII PROPERTIES, LLC, a Delaware limited liability company
("Borrower"), having an address at 333 N. Summit Street, Toledo, Ohio 43604. 

W I T N E S S E T H:  

        WHEREAS, JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America
("JPMorgan"), Column Financial, Inc., a Delaware corporation ("Column"), and Bank of America,
N.A., a national banking association ("BofA", and together with JPMorgan and Column, collectively, the "Mortgage
Noteholders") are making a loan in aggregate principal amount of $3,000,000,000.00 (the "Mortgage Loan"), which Mortgage Loan is
evidenced by that certain Promissory Note, dated as of the date hereof, made by the entities listed on Schedule I attached hereto (collectively,
the"Mortgage Borrowers") in favor of the Mortgage Noteholders (as the same may be amended, severed, split, extended, consolidated, replaced, restated,
supplemented or otherwise modified from time to time, collectively, the "Mortgage Note"), pursuant to a Loan Agreement, dated as of the date hereof, by
and among JPMorgan, as collateral agent for itself and the other Mortgage Noteholders ("Mortgage Lender"), HCR ManorCare Maryland
Properties, LLC, a Delaware limited liability company ("Maryland Owner"), and the Mortgage Borrowers (as the same may be amended, replaced,
restated, supplemented or otherwise modified from time to time, the "Mortgage Loan Agreement") and secured by the Mortgages (as hereinafter defined); 

        WHEREAS, JPMorgan, Column and BofA (collectively, the "First Mezzanine Noteholders") are
making a loan in the aggregate principal amount of $100,000,000.00 (the "First Mezzanine Loan"), which First Mezzanine Loan is evidenced by that certain
Promissory Note (First Mezzanine Loan), dated as of the date hereof, made by HCR I-A Properties, LLC, a Delaware limited liability company ("IA
Borrower"), and HCR I-B Properties, LLC, a Delaware limited liability company ("IB Borrower", and together
with IA Borrower, each, a "First Mezzanine Borrower" and collectively, the "First Mezzanine Borrowers")
in favor of the First Mezzanine Noteholders (as the same may be amended, severed, split, extended, consolidated, restated, replaced, supplemented or otherwise modified from time to time, the
"First Mezzanine Note"), pursuant to a certain Loan Agreement (First Mezzanine Loan), dated as of the date hereof, by and between JPMorgan Chase Bank,
N.A., a banking association chartered under the laws of the United States of America, as
collateral agent for itself and the other First Mezzanine Noteholders (together with its successors and assigns, the "First Mezzanine Lender"), and the
First Mezzanine Borrowers (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the "First Mezzanine Loan
Agreement"), and secured by, among other things, a pledge of all of IB Borrower's interest in IA Borrower and all of IA Borrower's interest in the Mortgage Borrowers (other
than Maryland Borrower (as defined in this Agreement)); 

        WHEREAS, JPMorgan, Column and BofA (collectively, the "Second Mezzanine Noteholders") are
making a loan in the aggregate principal amount of $250,000,000.00 (the "Second Mezzanine Loan"), which Second Mezzanine Loan is evidenced by that
certain Promissory Note (Second Mezzanine Loan), dated as of the date hereof, made by HCR II Properties, LLC, a Delaware limited liability company ("Second Mezzanine
Borrower"), in favor of the Second Mezzanine Noteholders (as the same may be amended, severed, split, extended, consolidated, restated, replaced, supplemented or otherwise
modified from time to time, the "Second Mezzanine Note"), pursuant to a certain Loan Agreement (Second Mezzanine Loan), dated as of the date hereof, by
and between JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America, as collateral agent for itself and the other Second Mezzanine Noteholders
(together with its successors and assigns, the "Second  

 

 Mezzanine Lender"), and the Second Mezzanine Borrowers (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the
"Second Mezzanine Loan Agreement"), and secured by, among other things, a pledge of all of Second Mezzanine Borrower's interest in I-B
Borrower; 

        WHEREAS, JPMorgan, Column and BofA (collectively, the "Third Mezzanine Noteholders") are
making a loan in the aggregate principal amount of $250,000,000.00 (the "Third Mezzanine Loan"), which Third Mezzanine Loan is evidenced by that certain
Promissory Note (Third Mezzanine Loan), dated as of the date hereof, made by HCR III Properties, LLC, a Delaware limited liability company ("Third Mezzanine
Borrower"), in favor of the Third Mezzanine Noteholders (as the same may be amended, severed, split, extended, consolidated, restated, replaced, supplemented or otherwise
modified from time to time, the "Third Mezzanine Note"), pursuant to a certain Loan Agreement (Third Mezzanine Loan), dated as of the date hereof, by
and between JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America, as collateral agent for itself and the other Third Mezzanine Noteholders
(together with its successors and assigns, the "Third Mezzanine Lender"), and the Third Mezzanine Borrowers (as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time, the "Third Mezzanine Loan Agreement"), and secured by, among other things, a pledge of
all of Third Mezzanine Borrower's interest in Second Mezzanine Borrower; 

        WHEREAS, JPMorgan, Column and BofA (collectively, the "Fourth Mezzanine Noteholders") are
making a loan in the aggregate principal amount of $250,000,000.00 (the "Fourth Mezzanine Loan"), which Fourth Mezzanine Loan is evidenced by that
certain Promissory Note (Fourth Mezzanine Loan), dated as of the date hereof, made by HCR IV Properties, LLC, a Delaware limited liability company ("Fourth Mezzanine
Borrower"), in favor of the Fourth Mezzanine Noteholders (as the same may be amended, severed, split, extended, consolidated, restated, replaced, supplemented or otherwise
modified from time to time, the "Fourth Mezzanine Note"), pursuant to a certain Loan Agreement (Fourth Mezzanine Loan), dated as of the date hereof, by
and between JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America, as collateral agent for itself and the other Fourth Mezzanine Noteholders
(together with its successors and assigns, the "Fourth Mezzanine Lender"), and the Fourth Mezzanine Borrowers (as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time, the "Fourth Mezzanine Loan Agreement"), and secured by, among other things, a pledge of
all of Fourth Mezzanine Borrower's interest in Third Mezzanine Borrower; 

        WHEREAS, JPMorgan, Column and BofA (collectively, the "Fifth Mezzanine Noteholders") are
making a loan in the aggregate principal amount of $250,000,000.00 (the "Fifth Mezzanine Loan"), which Fifth Mezzanine Loan is evidenced by that certain
Promissory Note (Fifth Mezzanine Loan), dated as of the date hereof, made by HCR V Properties, LLC, a Delaware limited liability company ("Fifth Mezzanine
Borrower"), in favor of the Fifth Mezzanine Noteholders (as the same may be amended, severed, split, extended, consolidated, restated, replaced, supplemented or otherwise
modified from time to time, the "Fifth Mezzanine Note"), pursuant to a certain Loan Agreement (Fifth Mezzanine Loan), dated as of the date hereof, by
and between JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America, as collateral agent for itself and the other Fifth Mezzanine Noteholders
(together with its successors and assigns, the "Fifth Mezzanine Lender"), and the Fifth Mezzanine Borrowers (as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time, the "Fifth Mezzanine Loan Agreement"), and secured by, among other things, a pledge of
all of Fifth Mezzanine Borrower's interest in Fourth Mezzanine Borrower; 

        WHEREAS, JPMorgan, Column and BofA (collectively, the "Sixth Mezzanine Noteholders") are
making a loan in the aggregate principal amount of $250,000,000.00 (the "Sixth Mezzanine Loan"), which Sixth Mezzanine Loan is evidenced by that certain
Promissory Note (Sixth Mezzanine Loan), 

2

 

dated
as of the date hereof, made by HCR VI Properties, LLC, a Delaware limited liability company ("Sixth Mezzanine Borrower"), in favor of the
Sixth Mezzanine Noteholders (as the same may be amended, severed, split, extended, consolidated, restated, replaced, supplemented or otherwise modified from time to time, the
"Sixth Mezzanine Note"), pursuant to a certain Loan Agreement (Sixth Mezzanine Loan), dated as of the date hereof, by and between JPMorgan Chase Bank,
N.A., a banking association chartered under the laws of the United States of America, as collateral agent for itself and the other Sixth Mezzanine Noteholders (together with its successors and
assigns, the "Sixth Mezzanine Lender"), and the Sixth Mezzanine Borrowers (as the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time, the "Sixth Mezzanine Loan Agreement"), and secured by, among other things, a pledge of all of Sixth Mezzanine Borrower's
interest in Fifth Mezzanine Borrower; 

        WHEREAS, Borrower is the legal and beneficial owner of 100% of the issued and outstanding limited liability company membership interests
in Sixth Mezzanine Borrower; 

        WHEREAS, Borrower desires to obtain the Loan (as defined below) from Lender; 

        WHEREAS, JPMorgan, Column and BofA (collectively, the "Noteholders") are willing to make
the Loan to Borrower, subject to and in accordance with the terms of this Agreement and the other Loan Documents (as defined below); and 

        WHEREAS, as a condition precedent to the obligation of Lender to make the Loan to Borrower, Borrower has entered into that certain Pledge
and Security Agreement (Seventh Mezzanine Loan), dated as of the date hereof, in favor of Lender (as amended, supplemented or otherwise modified from time to time, the "Pledge
Agreement"), pursuant to which Borrower has granted to Lender a first priority security interest in the Collateral (as defined in the Pledge Agreement) as collateral security
for the Debt (as hereinafter defined); and 

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

        I.    DEFINITIONS; PRINCIPLES OF CONSTRUCTION    

        Section 1.1.    Definitions.    For all purposes of this
Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent: 

        "Acceptable Counterparty" shall mean any counterparty to the Interest Rate Cap Agreement (or any guarantor thereof) that has the Minimum
Counterparty Rating. 

        "Accounts" shall mean, collectively, (a) the Seventh Mezzanine Deposit Account and (b) the Seventh Mezzanine
Sub-accounts. 

        "Additional Insolvency Opinion" shall mean (a) any non-consolidation opinion or (b) any update to the Insolvency
Opinion, in either case, delivered by Borrower subsequent to the Closing Date. 

        "Additional True-Lease Opinion" shall mean (a) any true-lease opinion or (b) any update to the
True-Lease Opinion, in either case, delivered by Borrower subsequent to the Closing Date. 

        "Affected Operator" shall mean, individually and collectively as the context requires, each Operator that is the subject of a Limited Cure
Default. 

        "Affected Property Release" shall have the meaning set forth in Mortgage Loan Agreement. 

        "Affected Property Release Amount" shall mean, with respect to an Individual Property, the Allocated Loan Amount for such Individual
Property. 

3

 

        "Affiliate" shall mean, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by or is under
common control with such Person. 

        "Agent's Register" shall have the meaning set forth in Section 10.24 hereof. 

        "Aggregate Debt Service" shall mean, with respect to any particular period of time, the sum of (a) the Debt Service, (b) the
Mortgage Debt Service and (c) the Other Mezzanine Debt Service. 

        "Aggregate Property Threshold Amount" shall mean $50,000,000.00. 

        "Aggregate Remaining Costs" shall have the meaning set forth in Section 5.1.23(a)
hereof. 

        "Allocated Loan Amount" shall mean, with respect to an Individual Property, the "Allocated Loan Amount" with respect to such Individual
Property as set forth on Schedule I. 

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

        "Alteration Security" shall have the meaning set forth in Section 5.1.23(a) hereof. 

        "Alternative Transferee Standard" shall mean and be deemed to have been satisfied by an entity that (i) owns assets with a market
value of at least $2,000,000,000, (ii) has a staff of experienced real estate professionals (A) who have the expertise and resources necessary to successfully manage a portfolio of
commercial properties having a market value equal to the aggregate market value of the Properties, and (B) the senior members of which have actual experience in managing (at a senior level) a
portfolio of commercial properties having a market value of at least $2,000,000,000, and (iii) are of the caliber, reputation, expertise and experience as would be reasonably acceptable to a
prudent institutional investor to manage on its behalf a portfolio of commercial properties having a market value equal to the aggregate market value of the Properties. 

        "Applicable Interest Rate" shall mean either (a) with respect to any period during which the Loan is a LIBOR Loan, the LIBOR
Interest Rate plus the Spread or (b) with respect to any period during which the Loan is a Prime Rate Loan pursuant to the provisions of Section 2.2.4
(b) or (e) hereof, the Prime Rate plus the Prime Rate Spread. 

        "Appraised Value" shall mean, with respect to any Individual Property, the "as is" appraised value of such Individual Property based on an
updated appraisal thereof, at Borrower's, Senior Mezzanine Borrower's or Mortgage Borrower's sole cost and expense, prepared by a qualified MAI appraiser having no interest (direct or indirect) in the
Loan, the Collateral or in the Properties and which is in compliance with the requirements of FIRREA, which appraisal shall be in form and substance acceptable to the Lender. 

        "Approved Quarterly CapEx Budget" shall have the meaning set forth in  Section 5.1.11(f) hereof. 

        "Assignment of Leases" shall mean, (a) with respect to each Individual Property, that certain Assignment of Leases and Rents, dated
as of November 6, 2007 and effective as of the date hereof, from the applicable Mortgage Borrower, as assignor, to Mortgage Lender, as assignee, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time, and (b) with respect to the Maryland Properties, that certain Indemnity Assignment of Leases and Rents, dated as of November 6, 2007
and effective as of the date hereof, from Maryland Owner, as assignor, to Mortgage Lender, as assignee, with respect to the Maryland Properties, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time. 

4

 

        "Assignment of Title Insurance Proceeds" shall mean that certain Assignment of Title Insurance Proceeds, dated as of the date hereof, by
and among the Borrower (as defined therein) and the Owner (as defined therein) for the benefit of Lender (as defined therein). 

        "Audited Financial Statements" shall have the meaning set forth in  Section 5.1.11(b) hereof. 

        "Award" shall mean any compensation paid directly or indirectly to Mortgage Borrower and Maryland Owner by any Governmental Authority in
connection with a Condemnation with respect to all or any part of any Individual Property. 

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

        "Bankruptcy Code" shall mean the Bankruptcy Reform Act of 1978, as amended, 11 U.S.C., Section 101, et
seq., and the regulations adopted and promulgated pursuant thereto. 

        "Basic Carrying Costs" shall mean, for any period, with respect to each Individual Property, the sum of the following costs associated
with such Individual Property for such period: (a) Taxes, (b) Insurance Premiums and (c) Other Charges. 

        "BofA" shall mean Bank of America, N.A., a national banking association, and its successors and assigns. 

        "Borrower" shall have the meaning set forth in the introductory paragraph hereof. 

        "Borrower Company Agreement" shall mean, individually or collectively, as the context may require, the operating agreements and
certificates of formation of Borrower. 

        "Breakage Costs" shall have the meaning set forth in Section 2.2.4(g) hereof. 

        "Business Day" shall mean any day other than a Saturday, Sunday or any other day on which national banks in New York, New York are not
open for business. 

        "Capital Expenditures" shall mean, for any period, the amount expended with respect to the Properties for items capitalized under GAAP
(including expenditures for building improvements or major repairs, leasing commissions and tenant improvements). 

        "Cap Replacement Delivery Date" shall have the meaning set forth in  Section 2.2.8(c) hereof. 

        "Cap Replacement Delivery Deadline" shall have the meaning set forth in  Section 2.2.8(c) hereof. 

        "Carlyle" shall mean TC Group, L.L.C., a Delaware limited liability company. 

        "Cash Management Agreement" shall mean that certain Cash Management Agreement (Seventh Mezzanine Loan), dated as of the date hereof, by
and between Borrower and Lender, as 

5

 

the
same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

        "Casualty" shall have the meaning set forth in Section 6.2 hereof. 

        "Closing Date" shall mean the date of the funding of the Loan. 

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

        "Collateral" means, collectively, the "Collateral", as defined in the Pledge Agreement, and shall also include all amounts on deposit in
the Seventh Mezzanine Deposit Account and the Reserve Funds (if such funds are under the control of the Lender), amounts payable pursuant to the Collateral Assignment of Interest Rate Cap and any and
all other property or collateral in which Lender is granted a security interest under any of the Loan Documents, in each case whether existing on the date hereof or hereafter pledged or assigned to
Lender. 

        "Collateral Assignment of Interest Rate Cap Agreement" shall mean, individually and collectively, as the context shall require, those
certain Collateral Assignments of Interest Rate Cap Agreement (Seventh Mezzanine Loan), dated as of the date hereof, executed by Borrower in connection with the Loan for the benefit of Lender, as the
same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

        "Collateral Assignment of Lease Guaranty" shall mean, individually and collectively as the context requires, (a) that certain
Collateral Assignment of Lease Guaranty made by Master Tenant to Mortgage Borrower and Maryland Owner and (b) that certain Collateral Assignment of Lease Guaranty made by Mortgage Borrower and
Maryland Owner to Mortgage Lender. 

        "Collateral Entities" shall have the meaning set forth in Section 5.1.8(a) hereof. 

        "Column" shall mean Column Financial, Inc., a Delaware corporation, and its successors and assigns. 

        "Condemnation" shall mean a temporary or permanent taking by any Governmental Authority as the result or in lieu or in anticipation of the
exercise of the right of condemnation or eminent domain, of all or any part of any Individual Property, or any interest therein or right accruing thereto, including any right of access thereto or any
change of grade affecting such Individual Property or any part thereof. 

        "Condemnation Proceeds" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Contractual Obligations" shall mean as to any Person, any provision of any security issued by such Person or of any agreement, instrument
or undertaking to which such Person is a party or by which it or any of its property is bound, or any provision of the foregoing. 

        "Control" shall mean the ownership, directly or indirectly, in the aggregate of more than fifty percent (50%) of the beneficial ownership
interests of an entity and, when used with respect to any specific Person, the possession, directly or indirectly, of the power to direct and cause the direction of the
management and policies of such Person whether through ownership of voting securities, beneficial interests, by contract or otherwise. The definition is to be construed to apply equally to variations
of the word "Control", including "Controlled,"
"Controlling" or "Controlled by." 

        "Cooperation Agreement" shall mean that certain Cooperation Agreement of even date herewith by and among Mortgage Lender, Mortgage
Borrower, Maryland Owner, each Mezzanine Lender and each Mezzanine Borrower. 

        "Corporate Loan Lender" shall mean the lenders party to the Corporate Loan Agreement. 

6

 

        "Corporate Loan" shall mean that certain term and revolving loan financing made by Corporate Loan Lender to Manor Care and HCR
Healthcare, LLC, pursuant to the terms of the Corporate Loan Agreement and the other Corporate Loan Documents. 

        "Corporate Loan Agreement" shall mean that certain Credit Agreement, dated as of the date hereof, by and among JPMorgan, as administrative
and collateral agent, J.P. Morgan Securities Inc., Credit Suisse Securities (USA) LLC and Banc of America Securities LLC, as Joint Lead Arrangers and Joint Bookrunners and Manor
Care and HCR Healthcare, LLC, and, as the same may be amended, restated, replaced, supplemented, refinanced, extended or otherwise modified from time to time. 

        "Corporate Loan Documents" shall mean, collectively, the Corporate Loan Agreement and any and all other documents governing, evidencing or
securing the Corporate Loan, in each case as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

        "Corporate Services Agreement" shall mean, collectively, (i) that certain Corporate Services Agreement, of even date herewith,
among HMS and all of the Operators other than the Oklahoma Operators (as defined in Section 11.1 hereof), and (ii) that certain Corporate
Services Agreement, of even date herewith, among HMS and each of the Oklahoma Operators. 

        "Counterparty" shall mean, with respect to each Interest Rate Cap Agreement, JPMorgan Chase Bank, N.A., Credit Suisse International and
BofA or any substitute Acceptable Counterparty, and with respect to any Replacement Interest Rate Cap Agreement, any substitute Acceptable Counterparty. 

        "Covered Disclosure Information" shall have the meaning set forth in Section 9.2(b)
hereof. 

        "CS" shall mean Credit Suisse Securities (USA) LLC, a Delaware limited liability company, and its successors and assigns. 

        "Debt" shall mean the outstanding principal amount set forth in, and evidenced by, this Agreement and the Note, together with all interest
accrued and unpaid thereon (including any interest that would accrue on the outstanding principal amount of the Loan through and including the end of any applicable Interest Period, even if such
Interest Period extends beyond any prepayment date) and all other sums due to Lender in respect of the Loan under the Note, this Agreement, the Pledge Agreement and the other Loan Documents. 

        "Debt Service" shall mean, with respect to any particular period of time, scheduled interest payments due under this Agreement and the
Note. 

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

	(a)
	the
numerator is the Net Cash Flow (excluding interest on credit accounts) for such period as set forth in the financial statements required hereunder; and

	(b)
	the
denominator is the Aggregate Debt Service due and payable for such period; provided,  however, that for purposes of the calculation of the Debt Service
Coverage Ratio, Aggregate Debt Service shall be calculated using a LIBOR Interest Rate
in which LIBOR is equal to the Strike Price. 

        "Default" shall mean the occurrence of any event hereunder or under any other Loan Document which, but for the giving of notice or passage
of time, or both, would be an Event of Default. 

        "Default Rate" shall mean a rate per annum equal to the lesser of (a) the Maximum Legal Rate and (b) three percent (3%)
above the Applicable Interest Rate. 

7

 

        "Designated Mezzanine Lender" shall mean, individually and collectively, as the context shall require (i) any holder of a Mezzanine
Loan or any portion thereof, the original principal balance of which was $200,000,000.00 or more, provided, however, that if any Mezzanine Loan having an original principal balance of $200,000,000.00
or more is split and severed into two or more Mezzanine Loans all of which had an original principal balance of less than $200,000,000.00, the holders of such split and severed Mezzanine Loans having
an aggregate original principal balance of $200,000,000.00 or more, acting jointly, shall be deemed to collectively constitute a Designated Mezzanine Lender, and (ii) any holder of both a
Mezzanine Loan and a portion of the Mortgage Loan or a participation therein, the aggregate original principal balance of which was $200,000,000.00 or more. 

        "Determination Date" shall mean, with respect to any Interest Period, the date that is two (2) London Business Days prior to the
fifteenth (15th) day of the calendar month in which such Interest Period commences. 

        "Disclosure Document" shall mean a prospectus, prospectus supplement, private placement memorandum or similar offering memorandum or
offering circular, term sheet if any, or such other information customarily required by Lender used to offer Securities in connection with a Securitization. 

        "Disregarded Entities" shall have the meaning set forth in Section 5.1.10 hereof. 

        "Eligible Account" shall mean an account separate and identifiable from all other funds held by the holding institution that is either
(a) an account or accounts maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution or (b) a
segregated trust account or accounts maintained with a federal or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered
depository institution or trust company, is subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus of at least $50,000,000
and subject to supervision or examination by federal and state authority. An Eligible Account will not be evidenced by a certificate of deposit, passbook or other instrument. 

        "Eligible Institution" shall mean a depository institution or trust company, the short-term unsecured debt obligations or
commercial paper of which are rated at least "A-1+" by S&P, "P-1" by Moody's and "F-1+" by Fitch in the case of accounts in which funds are held for thirty
(30) days or less (or, in the case of Letters of Credit or accounts in which funds are held for more than thirty (30) days, the long-term unsecured debt obligations of which
are rated at least "AA" by Fitch and S&P and "Aa2" by Moody's). 

        "Embargoed Person" shall have the meaning set forth in Section 4.1.35 hereof. 

        "Enforcement Action" shall mean any (i) judicial or non-judicial foreclosure proceeding, the exercise of any power of
sale, the taking of a deed or assignment in lieu of foreclosure, the obtaining of a receiver or the taking of any other enforcement action against any of the Properties, the Collateral, the Borrower,
the Senior Mezzanine Borrower, the Mortgage Borrower or Maryland Owner, including, without limitation, the taking of possession or control of any portion thereof, (ii) acceleration of, or
demand or action taken in order to collect, all or any indebtedness secured by the Properties and/or the Collateral (other than giving of notices of default and statements of overdue amounts) or
(iii) exercise of any right or remedy available to Lender under the Loan Documents, Senior Mezzanine Lender under the Senior Mezzanine Loan Documents or Mortgage Lender under the Mortgage Loan
Agreement, at law, in equity or otherwise with respect to the Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner and/or the Collateral or Properties, as applicable. 

8

 

        "Environmental Indemnity" shall mean that certain Environmental Indemnity Agreement (Seventh Mezzanine Loan), dated as of the date hereof,
executed by Borrower and Guarantor in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

        "Equity Capital" shall mean the equity capital of Guarantor, excluding retained earnings and letters of credit issued to Guarantor on the
Closing Date, whether in the form of preferred equity on terms reasonably acceptable to Lender or common equity or, in the case of members of Guarantor's management or Persons under their control,
rollover equity. 

        "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as amended. 

        "Event of Default" shall have the meaning set forth in Section 8.1(a) hereof. 

        "Exchange Act" shall have the meaning set forth in Section 9.2(a) hereof. 

        "Exchange Act Filing" shall have the meaning set forth in Section 9.1(b) hereof. 

        "Excluded Taxes" shall have the meaning set forth in Section 2.2.9. 

        "Facility", with respect to each Individual Property, shall have the meaning set forth in the granting clause of the Mortgage encumbering
such Individual Property. 

        "Fee Borrower" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Fifth Mezzanine Borrower" shall have the meaning set forth in the Recitals hereof. 

        "Fifth Mezzanine Debt Service" shall mean, with respect to any particular period of time, scheduled interest payments due under the Fifth
Mezzanine Note. 

        "Fifth Mezzanine Deposit Account" shall have the meaning set forth in the Fifth Mezzanine Loan Agreement. 

        "Fifth Mezzanine Lender" shall have the meaning set forth in the Recitals hereof. 

        "Fifth Mezzanine Loan" shall have the meaning set forth in the Recitals hereof. 

        "Fifth Mezzanine Loan Agreement" shall have the meaning set forth in the Recitals hereof. 

        "Fifth Mezzanine Loan Documents" shall mean the "Loan Documents" under and as defined in the Fifth Mezzanine Loan Agreement. 

        "Fifth Mezzanine Note" shall have the meaning set forth in the Recitals hereof. 

        "Fifth Mezzanine Noteholders" shall have the meaning set forth in the Recitals hereof. 

        "Fifth Mezzanine Release Amount" shall mean the "Release Amount" under and as defined in the Fifth Mezzanine Loan Agreement. 

        "First Mezzanine Borrower" shall have the meaning set forth in the Recitals hereof. 

        "First Mezzanine Debt Service" shall mean, with respect to any particular period of time, scheduled interest payments due under the First
Mezzanine Note. 

        "First Mezzanine Deposit Account" shall have the meaning set forth in the First Mezzanine Loan Agreement. 

        "First Mezzanine Lender" shall have the meaning set forth in the Recitals hereof. 

        "First Mezzanine Loan" shall have the meaning set forth in the Recitals hereof. 

        "First Mezzanine Loan Agreement" shall have the meaning set forth in the Recitals hereof. 

9

 

        "First Mezzanine Loan Documents" shall mean the "Loan Documents" under and as defined in the First Mezzanine Loan Agreement. 

        "First Mezzanine Note" shall have the meaning set forth in the Recitals hereof. 

        "First Mezzanine Noteholders" shall have the meaning set forth in the Recitals hereof. 

        "First Mezzanine Release Amount" shall mean the "Release Amount" under and as defined in the First Mezzanine Loan Agreement. 

        "Fiscal Year" shall mean each twelve (12) month period commencing on January 1 and ending on December 31 during each
year of the term of the Loan. 

        "Fitch" shall mean Fitch, Inc. 

        "Fourth Mezzanine Borrower" shall have the meaning set forth in the Recitals hereof. 

        "Fourth Mezzanine Debt Service" shall mean, with respect to any particular period of time, scheduled interest payments due under the
Fourth Mezzanine Note. 

        "Fourth Mezzanine Deposit Account" shall have the meaning set forth in the Fourth Mezzanine Loan Agreement. 

        "Fourth Mezzanine Lender" shall have the meaning set forth in the Recitals hereof. 

        "Fourth Mezzanine Loan" shall have the meaning set forth in the Recitals hereof. 

        "Fourth Mezzanine Loan Agreement" shall have the meaning set forth in the Recitals hereof. 

        "Fourth Mezzanine Loan Documents" shall mean the "Loan Documents" under and as defined in the Fourth Mezzanine Loan Agreement. 

        "Fourth Mezzanine Note" shall have the meaning set forth in the Recitals hereof. 

        "Fourth Mezzanine Noteholders" shall have the meaning set forth in the Recitals hereof. 

        "Fourth Mezzanine Release Amount" shall mean the "Release Amount" under and as defined in the Fourth Mezzanine Loan Agreement. 

        "GAAP" shall mean generally accepted accounting principles in the United States of America as of the date of the applicable financial
report, consistently applied with such changes and modifications as Lender may reasonably approve. 

        "General Taxes" shall have the meaning set forth in Section 2.2.9. 

        "Government Account" shall mean any account payable by any Government Payor under the Medicare or Medicaid programs, any similar or
implementing state statutes and the rules and regulations promulgated pursuant to any thereof. 

        "Government Payor" shall mean the Centers for Medicare & Medicaid Services and any other federal or state governmental authority or
any other governmental Person responsible for making payment of any Government Account. 

        "Governmental Authority" shall mean any court, board, agency, commission, office or other authority of any nature whatsoever for any
governmental unit (federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence having jurisdiction over the Properties, the Senior Mezzanine Collateral, the
Collateral, Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Guarantor, Master Tenant or Operator. 

10

 

 

        "Gross Income from Operations" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Ground Lease" shall mean, individually and collectively, as the context requires, those certain ground leases described on  Schedule II hereto (as such schedule may
be modified from time to time to include ground leases for Substitute Properties and to exclude ground
leases for Substituted Properties). 

        "Guarantor" shall mean HCR ManorCare, Inc., a Delaware corporation. 

        "Guaranty" shall mean that certain Guaranty (Seventh Mezzanine Loan), dated as of the date hereof, from Guarantor to Lender, as the same
may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

        "Health Care Authorities" shall mean any Governmental Authority or fiscal intermediary of the Facilities having jurisdiction over the
ownership, operation, use or occupancy of any Individual Property as a skilled nursing facility, assisted living facility, long term acute care facility or other health care facility. 

        "Health Care Licenses" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Health Care Requirements" shall mean, with respect to each Individual Property, all federal, state, county, municipal and other
governmental statutes, laws, rules, orders, regulations, ordinances, standards, policies, judgments, decrees and injunctions or agreements, in each case regulating the establishment, construction,
ownership, operation, use or occupancy of such Individual Property or any part thereof as a skilled nursing facility or assisted living facility, and all material permits, licenses and authorizations
and regulations relating thereto, including all material rules, orders, regulations and decrees of and agreements with Health Care Authorities as pertaining to such Individual Property. 

        "HMS" shall have the meaning set forth in Section 5.1.34 hereof. 

        "IA Borrower" shall have the meaning set forth in the Recitals hereto. 

        "IB Borrower" shall have the meaning set forth in the Recitals hereto. 

        "Improvements" shall have the meaning set forth in the granting clause of the related Mortgage with respect to each Individual Property. 

        "Indebtedness" of a Person, at a particular date, means the sum (without duplication) at such date of (a) all indebtedness or
liability in respect of borrowed money of such Person (including indebtedness in the form of mezzanine debt and preferred equity); (b) obligations evidenced by bonds, debentures, notes, or
other similar instruments; (c) obligations for the deferred purchase price of property or services (including trade obligations); (d) obligations under letters of credit;
(e) obligations under acceptance facilities; (f) other contingent obligations to purchase, to provide funds for payment, to supply funds, to invest in any Person or entity, or otherwise
to assure a creditor against loss; and (g) obligations secured by any Liens. 

        "Indemnification Agreement" shall have the meaning set forth in Section 9.2(b)
hereof. 

        "Indemnified Liabilities" shall have the meaning set forth in Section 10.13(b)
hereof. 

        "Indemnified Persons" shall have the meaning set forth in Section 9.2(b) hereof. 

        "Indemnifying Person" shall mean each of Borrower and Guarantor. 

        "Indemnity Guaranty" shall mean that certain Indemnity Guaranty Agreement, dated as of the date hereof, from Maryland Owner to Mortgage
Lender securing the full and prompt payment and performance of the obligations and liabilities of Maryland Borrower under the Mortgage Note 

11

 

and
the other Mortgage Loan Documents, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

        "Independent Director" or "Independent Manager" (Borrower) shall mean a natural person who
is not at the time of initial appointment, or at any time while serving as a director or manager, as applicable, and has not been at any time during the preceding five (5) years: (a) a
stockholder, director (with the exception of serving as the Independent Director or Independent Manager of Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner), officer, trustee,
employee, partner, member (with the exception of serving as a special member), attorney or counsel of the Principal, Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner or any
Affiliate of any of them; (b) a creditor, customer, supplier or other person who derives any of its purchases or revenues from its activities with the Borrower, Senior Mezzanine Borrower,
Mortgage Borrower, Maryland Owner, or any Affiliate of any of them; (c) a Person or other entity controlling or under common control with any Person excluded from serving as Independent
Director or Independent Manager under the foregoing subparagraphs (a) or (b); or (d) a member of the immediate family by blood or marriage of any Person excluded from serving as
Independent Director or Independent Manager under the foregoing subparagraphs (a) or (b). As used in this definition, the term "control" means the possession, directly or indirectly, of the
power to direct or cause the direction of management, policies or activities of a Person, whether through ownership of voting securities, by contract or otherwise. A natural person who satisfies the
foregoing definition other than subparagraph (b) shall not be disqualified from serving as an Independent Director or Independent Manager of Borrower, Senior Mezzanine Borrower, Mortgage
Borrower, Maryland Owner or other applicable Person if such individual is an independent director or independent manager provided by a nationally-recognized company that provides professional
independent directors or independent managers (a "Professional Independent Director" or "Professional Independent
Manager") and that also provides other corporate services in the ordinary course of its business. A natural person who otherwise satisfies the foregoing definition other than
subparagraph (a) by reason of being the independent director or independent manager of a "special purpose entity" affiliated with Borrower shall not be disqualified from serving as an
Independent Director or Independent Manager of Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Principal, or Maryland Owner if such individual is either (i) a Professional Independent
Director or Professional Independent Manager or (ii) the fees that such individual earns from serving as independent director or manager of affiliates of Borrower, Senior Mezzanine Borrower,
Mortgage Borrower, Principal or Maryland Owner in any given year constitute in the aggregate less than five percent (5%) of such individual's annual income for such year. Notwithstanding the
immediately preceding sentence, an Independent Director or Independent Manager may not simultaneously serve as Independent Director or Independent Manager of Borrower, Principal, Senior Mezzanine
Borrower, Mortgage Borrower or Maryland Owner and independent director or independent manager of a special purpose entity that owns a direct or indirect equity interest in the Borrower, Senior
Mezzanine Borrower, Mortgage Borrower or Maryland Owner (other than Principal) or a direct or indirect equity interest of any co-borrower of the (1) Borrower, Senior Mezzanine
Borrower, Mortgage Borrower or Maryland Owner, (2) Operator or (3) Master Tenant. 

        "Independent Director" or "Independent Manager" (Master Tenant) shall have the meaning set
forth in the Mortgage Loan Agreement. 

        "Independent Director" or "Independent Manager" (Operator) shall have the meaning set
forth in the Mortgage Loan Agreement. 

        "Individual Leasehold Property" shall mean, with respect to each Leasehold Borrower, each parcel of real property, the Improvements
thereon and all personal property leased by such Leasehold Borrower pursuant to the related Ground Lease and encumbered by a Mortgage, 

12

 

together
with all rights pertaining to such property and Improvements (as more particularly described in the Granting Clauses of the applicable Mortgage and referred to therein as the "Property") and
as set forth on Schedule I. For the avoidance of doubt, the term "Individual Leasehold Property" shall (a) exclude (i) any Release
Property which is an Individual Leasehold Property from and after the date the same has been released pursuant to Section 2.6.1 hereof and
(ii) any Substituted Property which is an Individual Leasehold Property from and after the substitution thereof in accordance with  Section 2.5 hereof, and (b) include any Substitute
Property which is an Individual Leasehold Property from and after the substitution
thereof in accordance with Section 2.5 hereof. 

        "Individual Property" shall mean, with respect to each Mortgage Borrower (other than Maryland Borrower) and Maryland Owner, each parcel of
real property, the Improvements thereon and all personal property owned by such Mortgage Borrower or Maryland Owner and encumbered by a Mortgage, together with all rights pertaining to such property
and Improvements (as more particularly described in the Granting Clauses of the applicable Mortgage and referred to therein as the "Property") and as set forth on  Schedule I. For the avoidance of
doubt, the term "Individual Property" shall (a) exclude (i) any Release Property from and after
the same has been released pursuant to Section 2.6.1 hereof and (ii) any Substituted Property from and after the substitution thereof in
accordance with Section 2.5 hereof and (b) include (i) any Substitute Property from and after the substitution thereof in
accordance with Section 2.5 hereof and (ii) each Individual Leasehold Property. 

        "Individual Property Threshold Amount" shall mean, with respect to any Individual Property, the greater of (i) Five Million Dollars
($5,000,000.00) and (ii) five percent (5%) of the Allocated Loan Amount (as defined in the Mortgage Loan Agreement) of such Individual Property. 

        "Insolvency Opinion" shall mean that certain non-consolidation opinion letter dated the date hereof delivered by Richards,
Layton & Finger, P.A. in connection with the Loan. 

        "Insurance Premiums" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Insurance Proceeds" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Interest Period" shall mean, with respect to any Payment Date, the period commencing on the ninth (9th) day of the calendar
month immediately preceding the calendar month in which such Payment Date occurs and terminating on (and including) the eighth (8th) day of the calendar month in which such
Payment Date occurs; provided, however, each Interest Period shall be a full month and shall not be
shortened by reason of any payment of the Loan prior to the expiration of such Interest Period. 

        "Interest Rate Cap Agreement" shall mean, as applicable, one or more Interest Rate Cap Agreements (together with the confirmation and
schedules relating thereto) in form and substance reasonably satisfactory to Lender between Borrower and an Acceptable Counterparty, or a Replacement Interest Rate Cap Agreement. 

        "JPMorgan" shall mean JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America, and its
successors and assigns. 

        "Late Payment Charge" shall have the meaning set forth in Section 2.3.3 hereof. 

        "Lease" shall mean any lease (including the Master Lease and the Operating Lease, but excluding each Ground Lease), rental agreement,
occupancy agreement, residency agreement, sublease or subsublease, letting, license, concession or other agreement of whatever form, including service, consulting and administrative agreement (whether
written or oral and whether now or hereafter in effect) pursuant to which any Person is granted a possessory interest in, or right to use or occupy all or any portion of any space in any Individual
Property, and (a) every modification, 

13

 

amendment,
extension, renewal, replacement or other agreement relating to such lease, sublease, subsublease, or other agreement entered into in connection with such lease, sublease, subsublease, or
other agreement and (b) every guarantee of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other party thereto. 

        "Lease Guaranty" shall mean that certain Joint and Several Cross-Default Guaranty, dated as of the date hereof, made by each Operator in
favor of Master Tenant. 

        "Leasehold Borrower" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Leasehold Properties" shall mean, collectively, each and every Individual Leasehold Property. 

        "Legal Requirements" shall mean, with respect to each Individual Property, all federal, state, county, municipal and other governmental
statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities or Health Care Authorities affecting such
Individual Property or any part thereof, or the construction, use, alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force, and all permits, licenses and
authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments, either of record or known to Borrower, at any time in force
affecting such Individual Property or any part thereof, including any which may (a) require repairs, modifications or alterations in or to such Individual Property or any part thereof, or
(b) in any way limit the use and enjoyment thereof, but excluding in each case all Health Care Requirements and the requirements of applicable Environmental Laws (as such term is defined in the
Environmental Indemnity). 

        "Lender" shall have the meaning set forth in the introductory paragraph hereto, together with its successors and assigns;  provided, however, that "Lender" shall be deemed to include each Noteholder for purposes of
(a) the following sections of this Agreement: Sections 2.2.4(e) and (g),  Section 2.2.5,
Section 2.2.9,  Section 10.13, and (b) any other provisions of this Agreement and of any other Loan Documents which provide for
indemnification of Lender. 

        "Letter of Credit" shall mean an irrevocable, unconditional, transferable, clean sight draft letter of credit reasonably acceptable to
Lender (either (a) an evergreen letter of credit, (b) one which does not expire until at least three hundred sixty-five days (365) after the issuance thereof or
(c) one which does not expire until at least ten (10) Business Days after the Maturity Date or such earlier date that such letter of credit is no longer required under the terms of the
Loan Documents) in favor of Lender and entitling Lender to draw thereon based upon a statement purportedly executed by or on behalf of Lender that it has the right to draw thereon (either in whole or
in part) in New York, New York or such other place as shall be reasonably acceptable to Lender, issued by a domestic Eligible Institution or the U.S. agency or branch of a foreign Eligible
Institution. If at any time the bank issuing any such Letter of Credit shall cease to be an Eligible Institution and Borrower shall have failed to deliver to Lender a substitute Letter of Credit
within ten (10) days after such bank shall have ceased to be an Eligible Institution, Lender shall have the right immediately to draw upon the same in full and hold the proceeds of such draw in
accordance with the applicable provisions hereof. Each such Letter of Credit must be obtained by a Person, on behalf of Borrower, other than any Special Purpose Entity which is an Affiliate of
Borrower, and neither Borrower nor any Special Purpose Entity which is an Affiliate of Borrower shall have or be permitted to have any liability or other obligations under any reimbursement agreement
with respect to any such Letter of Credit or otherwise in connection with reimbursement to the issuing bank for draws on such Letter of Credit. 

        "Liabilities" shall have the meaning set forth in Section 9.2(b) hereof. 

        "LIBOR" shall mean, with respect to each Interest Period, the rate (expressed as a percentage per annum and rounded upward, if necessary,
to the next nearest 1/1000 of 1%) for deposits in U.S. 

14

 

dollars,
for a one-month period, that appears on Reuters Screen LIBOR01 (or the successor thereto) as of 11:00 a.m., London time, on the related Determination Date. If such rate
does not appear on Reuters Screen LIBOR01 as of 11:00 a.m., London time, on such Determination Date, Lender shall request the principal London office of any four major reference banks in the
London interbank market selected by Lender to provide such bank's offered quotation (expressed as a percentage per annum) to prime banks in the London interbank market for deposits in U.S. dollars for
a one-month period as of 11:00 a.m., London time, on such Determination Date for amounts of not less than the outstanding amount of the Loan. If at least two such offered quotations
are so provided, LIBOR shall be the arithmetic mean of such quotations. If fewer than two such quotations are so provided, Lender shall request any three major banks in New York City selected by
Lender to provide such bank's rate (expressed as a percentage per annum) for loans in U.S. dollars to leading European banks for a one-month period as of approximately 11:00 a.m.,
New York City time on the applicable Determination Date for amounts of not less than the outstanding amount of the Loan. If at least two such rates are so provided, LIBOR shall be the arithmetic mean
of such rates. LIBOR shall be determined by Lender or its agent, which determination shall be conclusive absent manifest error. Notwithstanding anything to the contrary contained in this Agreement,
LIBOR for the period commencing on the Closing Date and ending on January 8, 2008 shall be equal to 4.897%. 

        "LIBOR Interest Rate" shall mean with respect to each Interest Period the quotient of (i) LIBOR applicable to the Interest Period
divided by (ii) a percentage equal to 100% minus the Reserve Requirements applicable to the Interest Period. 

        "LIBOR Loan" shall mean the Loan at such time as interest thereon accrues at a rate of interest based upon the LIBOR Interest Rate. 

        "Licenses" shall have the meaning set forth in Section 4.1.22 hereof. 

        "Lien" shall mean, with respect to each Individual Property, the Senior Mezzanine Collateral or the Collateral, any mortgage, deed of
trust, lien, pledge, hypothecation, assignment, security interest, or any other encumbrance or charge on or affecting the applicable Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland
Owner or such Individual Property, the Senior Mezzanine Collateral or the Collateral (as the case may be), any portion thereof, including any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the foregoing, the filing of any financing statement, and mechanic's, materialmen's and other similar liens and encumbrances. 

        "Limited Cure Default" shall have the meaning set forth in Section 8.1(c) hereof. 

        "Limited Cure Release" shall have the meaning set forth in Section 8.1(c) hereof. 

        "Limited Cure Release Amount" shall have the meaning set forth in Section 8.1(c)
hereof. 

        "Liquidation Event" shall have the meaning set forth in Section 2.4.2(a) hereof. 

        "Loan" shall mean the loan made by Lender to Borrower pursuant to this Agreement. 

        "Loan Documents" shall mean, collectively, this Agreement, the Note, the Pledge Agreement, the Environmental Indemnity, the Collateral
Assignment of Interest Rate Cap Agreement, the Subordinations of South Carolina Management Agreement, the O&M Agreement, if any, the Guaranty, the Cash Management Agreement, the Cooperation Agreement,
the Assignment of Title Insurance Proceeds and any and all other documents executed and/or delivered in connection with the Loan. 

        "Loan Release Payments" shall have the meaning set forth in Section 2.6.1(e)
hereof. 

        "Lockout Release Date" shall have the meaning set forth in Section 2.4.1 hereof. 

15

 

        "London Business Day" shall mean any day other than a Saturday, Sunday or any other day on which commercial banks in London, England or
New York, New York are not open for business. 

        "Low DSCR General Reserve Account" shall have the meaning set forth in  Section 7.1.1. 

        "Low DSCR General Reserve Funds" shall have the meaning set forth in the Cash Management Agreement. 

        "Low DSCR Interest Floor Reserve Account" shall have the meaning set forth in  Section 7.1.1. 

        "Low DSCR Interest Floor Reserve Funds" shall have the meaning set forth in the Cash Management Agreement. 

        "Low DSCR Reserve Funds" shall mean, collectively, Low DSCR Interest Floor Reserve Funds and Low DSCR General Reserve Funds. 

        "Mandatory Prepayment Date" shall have the meaning set forth in Section 2.4.4
hereof. 

        "Manor Care" shall have the meaning set forth in the definition of "Merger Agreement". 

        "Maryland Borrower" shall mean HCR ManorCare Maryland Properties II, LLC, a Delaware limited liability company. 

        "Maryland Owner" shall have the meaning set forth in the Recitals hereto. 

        "Maryland Properties" shall mean each of those certain Individual Properties located in the State of Maryland as listed on  Schedule IV attached hereto. 

        "Master Lease" shall mean that certain Master Lease of even date herewith by and between Mortgage Borrower (other than Maryland Borrower)
and Maryland Owner, as landlord, and Master Tenant, as tenant. 

        "Master Tenant" shall mean HCR III Healthcare, LLC, a Delaware limited liability company. 

        "Material Adverse Effect" shall mean any material adverse effect upon (a) the business, operations, assets or financial condition
of (i) Borrower, (ii) any Senior Mezzanine Borrower (with respect to First Mezzanine Borrower, taken as a whole), (iii) Mortgage Borrower and Maryland Owner (taken as a whole),
(iv) Guarantor, (v) Master Tenant, (vi) Operator (taken as a whole), (vii) the Properties (taken as a whole) or the Facilities (taken as a whole), (viii) the Senior
Mezzanine Collateral with respect to any one Senior Mezzanine Loan or (ix) the Collateral; (b) the ability of Borrower or Guarantor to perform, in all material respects, its respective
material obligations under the Loan Documents (taken as a whole) to which it is a party; (c) the ability of any Senior Mezzanine Borrower (with respect to First Mezzanine Borrower, taken as a
whole) to perform in all material respects, its respective obligations under the Senior Mezzanine Loan Documents to which it is a party, (d) the ability of Mortgage Borrower (taken as a whole)
and Maryland Owner or Guarantor to perform in all material respects, its respective obligations under the Mortgage Loan Documents to which it is a party; (e) the ability of Master Tenant or
Operator (taken as a whole) to perform, in all material respects, its respective material obligations under the Leases (taken as a whole); (f) the enforceability or validity of (i) the
Master Lease, (ii) the Operating Lease (taken as a whole), (iii) the Loan Documents (taken as a whole) or the perfection and priority of the Liens created under the Loan Documents (taken
as a whole), (iv) the Senior Mezzanine Loan Documents for any one Senior Mezzanine Loan (taken as a whole) or the perfection and priority of the Liens created under the Senior Mezzanine Loan
Documents for any one Senior Mezzanine Loan (taken as a whole) or (v) the Mortgage Loan Documents (taken as a whole) or the perfection and priority of the Liens created under the Mortgage Loan
Documents (taken as a whole); or (g) (i) the material rights, interests and 

16

 

remedies
of Lender under the Loan Documents (taken as a whole), (ii) the material rights, interests and remedies of Lender under the Senior Mezzanine Loan Documents with respect to any one
Senior Mezzanine Loan (taken as a whole) or (iii) the material rights, interests and remedies of Mortgage Lender under the Mortgage Loan Documents (taken as a whole). 

        "Maturity Date" shall mean January 9, 2013, or such other date on which the final payment of principal of the Note becomes due and
payable as therein or herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise. 

        "Maximum Legal Rate" shall mean the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted
for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents, under the laws of such state or states whose laws are held
by any court of competent jurisdiction to govern the interest rate provisions of the Loan. 

        "Medicaid" shall mean Title XIX of the Social Security Act, which was enacted in 1965 to provide a cooperative federal-state program for
low income and medically indigent persons, which is partially funded by the federal government and administered by the states. 

        "Medicare" shall mean Title XVIII of the Social Security Act, which was enacted in 1965 to provide a federally funded and administered
health program for the aged and certain disabled persons. 

        "Merger" shall mean that certain merger transaction effectuated substantially in accordance with the Merger Agreement, pursuant to which
Mergerco shall be merged with and into Manor Care, with Manor Care being the surviving entity. 

        "Merger Agreement" shall mean that certain Agreement and Plan of Merger, dated as of July 2, 2007, by and between
MCHCR-CP Merger Sub Inc., a Delaware corporation ("Mergerco"), and Manor Care, Inc., a Delaware corporation
("Manor Care"), and the disclosure schedules and exhibits attached thereto and made a part thereof as same may have been amended pursuant to amendments
disclosed to Lender. 

        "Mergerco" shall have the meaning set forth in the definition of "Merger Agreement". 

        "Mezzanine Borrower" shall mean, individually and collectively as the context may require, (a) First Mezzanine Borrower,
(b) Second Mezzanine Borrower, (c) Third Mezzanine Borrower, (d) Fourth Mezzanine Borrower, (e) Fifth Mezzanine Borrower, (f) Sixth Mezzanine Borrower and
(g) Borrower. 

        "Mezzanine Entities" shall have the meaning set forth in Section 5.2.10(e) hereof. 

        "Mezzanine Lender" shall mean, individually and collectively as the context may require (a) First Mezzanine Lender,
(b) Second Mezzanine Lender, (c) Third Mezzanine Lender, (d) Fourth Mezzanine Lender, (e) Fifth Mezzanine Lender, (f) Sixth Mezzanine Lender and (g) Lender. 

        "Mezzanine Loan" shall mean, individually and collectively as the context may require (a) the First Mezzanine Loan, (b) the
Second Mezzanine Loan, (c) the Third Mezzanine Loan, (d) the Fourth Mezzanine Loan, (e) the Fifth Mezzanine Loan, (f) the Sixth Mezzanine Loan and (g) the Loan. 

        "Mezzanine Loan Agreement" shall mean, individually and collectively as the context may require, (a) the First Mezzanine Loan
Agreement, (b) the Second Mezzanine Loan Agreement, (c) the Third Mezzanine Loan Agreement, (d) the Fourth Mezzanine Loan Agreement, (e) the Fifth Mezzanine Loan Agreement,
(f) the Sixth Mezzanine Loan Agreement and (g) this Agreement. 

17

 

        "MILA" shall have the meaning set forth in paragraph (a) of the definition of "Special Purpose Entity (Operator)". 

        "Minimum Counterparty Rating" shall mean, with respect to a Counterparty, that (a) the long-term unsecured debt
obligations or counterparty rating of such Counterparty are rated at least "A-" by S&P and (b) the long-term unsecured debt obligations or counterparty rating of such
Counterparty are rated at least "A1" by Moody's. 

        "Moody's" shall mean Moody's Investors Service, Inc. 

        "Mortgage" shall mean (a) with respect to each Individual Property other than an Individual Leasehold Property or a Maryland
Property, that certain Mortgage (or Deed of Trust or Deed to Secure Debt) and Security Agreement, dated as of November 6, 2007 and effective as of the date hereof, executed and delivered by
Mortgage Borrower, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, (b) with respect to each Individual Leasehold Property, that certain
Leasehold Mortgage (or Deed of Trust or Deed to Secure Debt) and Security Agreement, dated as of November 6, 2007 and effective as of the date hereof, executed and delivered by Mortgage
Borrower, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time and (c) with respect to each Maryland Property, that certain Indemnity Deed of
Trust and Security Agreement, dated as of November 6, 2007 and effective as of the date hereof, executed and delivered by Maryland Owner as security for, inter alia, the obligations and
liabilities of Maryland Owner under the Indemnity Guaranty, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

        "Mortgage Borrower" shall mean the "Borrower" under and as defined in the Mortgage Loan Agreement. 

        "Mortgage Cash Management Account" shall mean the "Cash Management Account" under and as defined in the Mortgage Cash Management
Agreement. 

        "Mortgage Cash Management Agreement" shall mean that certain Cash Management Agreement, dated as of the date hereof, among Mortgage
Borrower, Maryland Owner and Mortgage Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

        "Mortgage Debt" shall mean the "Debt" as defined in the Mortgage Loan Agreement. 

        "Mortgage Debt Service" shall mean, with respect to any particular period of time, scheduled interest payments due under the Mortgage
Note. 

        "Mortgage Lender" shall have the meaning set forth in the Recitals hereto, together with its successors and assigns. 

        "Mortgage Loan" shall have the meaning set forth in the Recitals hereto. 

        "Mortgage Loan Agreement" shall have the meaning set forth in the Recitals hereto. 

        "Mortgage Loan Documents" shall mean, collectively, the Mortgage Note, the Mortgage Loan Agreement, the Mortgage, the Assignment of Leases
and Rents, the Mortgage Cash Management Agreement, and any and all other documents defined as "Loan Documents" in the Mortgage Loan Agreement, as amended, restated, replaced, supplemented or otherwise
modified from time to time. 

        "Mortgage Loan Event of Default" shall mean an "Event of Default" under and as defined in the Mortgage Loan Agreement. 

18

 

        "Mortgage Loan Reserve Funds" shall mean the "Reserve Funds" as defined in the Mortgage Loan Agreement. 

        "Mortgage Note" shall have the meaning set forth in the Recitals hereto. 

        "Mortgage Noteholders" shall have the meaning set forth in the Recitals hereto. 

        "Mortgage Release Amount" shall mean "Release Amount" under, as defined in, and subject to adjustment in accordance with, the Mortgage
Loan Agreement. 

        "Mortgage Sub-accounts" shall have the meaning set forth in the Mortgage Cash Management Agreement. 

        "Net Cash Flow" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Net Cash Flow Schedule" shall mean a schedule reconciling Net Operating Income to Net Cash Flow, which schedule shall itemize all
material adjustments to Net Operating Income to arrive at Net Cash Flow, accompanied by an Officer's Certificate stating that such items fairly and correctly reflect in all material respects the
matters set forth therein. 

        "Net Liquidation Proceeds After Debt Service" shall mean, with respect to any Liquidation Event, all amounts paid to or received by or on
behalf of Mortgage Borrower or Maryland Owner in connection with such Liquidation Event, including, without limitation, proceeds of any sale, refinancing or other disposition or liquidation, less
(a) Lender's, Mortgage Lender's and/or Senior Mezzanine Lender's reasonable costs incurred in connection with the recovery thereof, (b) the costs incurred by Mortgage Borrower or
Maryland Owner in connection with a Restoration of all or any portion of the Property made in accordance with the Mortgage Loan Documents, (c) amounts required or permitted to be deducted
therefrom and amounts paid pursuant to the Mortgage Loan Documents to Mortgage Lender or pursuant to the applicable Senior Mezzanine Loan Documents to Senior Mezzanine Lender, (d) (i) in the
case of a foreclosure sale, disposition or Transfer of the Property in connection with realization thereon following an Mortgage Loan Event of Default, such reasonable and customary costs and expenses
of sale or other disposition (including attorneys' fees and brokerage commissions), and (ii) in the case of a foreclosure sale, disposition or Transfer of the Senior Mezzanine Collateral in
connection with realization thereon following a Senior Mezzanine Loan Event of Default, such reasonable and customary costs and expenses of sale or other disposition (including attorneys' fees and
brokerage commissions), (e) (i) in the case of a foreclosure sale, such costs and expenses incurred by Mortgage Lender under the Mortgage Loan Documents as Mortgage Lender shall be entitled to
receive reimbursement for under the terms of the Mortgage Loan Documents, and (ii) in the case of a foreclosure sale, such costs and expenses incurred by Senior Mezzanine Lender under the
applicable Senior Mezzanine Loan Documents as the applicable Senior Mezzanine Lender shall be entitled to receive reimbursement for under the terms of the applicable Senior Mezzanine Loan Documents,
(f) in the case of a refinancing of the Mortgage Loan and/or any Senior Mezzanine Loan, such costs and expenses (including attorneys' fees) of such refinancing as shall be reasonably approved
by Mortgage Lender and/or Senior Mezzanine Lender, as the case may be, (g) the amount of any prepayments required pursuant to the Mortgage Loan Documents, any of the Senior Mezzanine Loan
Documents, and/or the Loan Documents, in connection with any such Liquidation Event and (h) all amounts which are required to be paid to each Other Mezzanine Borrower or Other Mezzanine Lender
pursuant to the terms and provisions of the Mortgage Loan Agreement, the Loan Agreement and each Other Mezzanine Loan Agreement that require ratable allocation of any such amounts among the Mortgage
Loan and each Mezzanine Loan. 

        "Net Operating Income" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Net Proceeds" shall have the meaning set forth in the Mortgage Loan Agreement. 

19

 

        "New Lease" shall have the meaning set forth in Section 5.1.22 hereof. 

        "Non-Excluded Taxes" shall have the meaning set forth in Section 2.2.9
hereof. 

        "Non-Exempt Lender" shall have the meaning set forth in Section 2.2.9. 

        "Non-Material Lease" shall mean (a) any Lease to a third-party tenant with respect to an Individual Property, which
Lease (i) has a term which does not exceed five (5) years, and (ii) is for a portion of the Facility located on such Individual Property which does not exceed 5,000 square feet,
and (b) any Lease to a third party tenant with respect to an Individual Property, which Lease (i) has a term not to exceed five (5) years, (ii) is for an unimproved portion
of such Individual Property which in any case constitutes less than ten percent (10%) of the land constituting such Individual Property and such land is in a portion of such Individual Property that
is immaterial to the use, operation or maintenance of such Individual Property as a skilled nursing facility or as an assisted living facility, as applicable, (iv) does not cause the Facility
or such Individual Property to fail to be in compliance with all material Legal Requirements, and (v) restricts the use of the land demised thereunder to uses which comply with all material
Legal Requirements. 

        "Note" shall mean that certain Promissory Note of even date herewith in the stated principal amount of Two Hundred Fifty Million and
No/100 Dollars ($250,000,000.00) made by Borrower in favor of each of JPMorgan, Column and BofA, as the same may be amended, severed, split, extended, consolidated, restated, replaced, supplemented or
otherwise modified from time to time. 

        "Noteholder" shall mean each holder of the Note, including any assignee or successor to a holder of the Note; as of the Closing Date, the
Noteholders are JPMorgan, Column and BofA. 

        "O&M Agreement" shall mean, with respect to each Individual Property for which Lender shall reasonably so require, that certain Operations
and Maintenance Agreement (Seventh Mezzanine Loan), dated as of the date hereof, between Borrower and Lender given in connection with the Loan, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time. 

        "Officer's Certificate" shall mean a certificate delivered to Lender by Borrower, which is signed on behalf of Borrower by an authorized
representative or officer of Borrower (in such capacity). 

        "Operating Cash Flow Coverage Ratio" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Operating Expenses" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Operating Lease" shall mean, individually and collectively, as the context requires, each of those certain subleases of even date
herewith entered into by each Operator, as subtenant thereunder, in each case with Master Tenant, as sublandlord. 

        "Operator" shall mean, individually and collectively as the context requires, the entities set forth on  Schedule III, together with their respective permitted
successors and permitted assigns, each of which entities is the operator of the Individual
Property set forth opposite such entity's name on Schedule III pursuant to an Operating Lease. For the avoidance of doubt, the term "Operator"
shall include any Substitute Property Operator from and after a substitution in accordance with Section 2.5 hereof. 

        "Other Borrower Collateral" shall have the meaning set forth in Section 11.2.1
hereof. 

        "Other Borrowers" shall have the meaning set forth in Section 11.1 hereof. 

        "Other Charges" shall mean all ground rents, maintenance charges, impositions other than Taxes, and any other charges, including vault
charges and license fees for the use of vaults, chutes 

20

 

and
similar areas adjoining any Individual Property, now or hereafter levied or assessed or imposed against such Individual Property or any part thereof. 

        "Other Mezzanine Borrower" shall mean, individually or collectively, as the context may require, (a) the First Mezzanine Borrower,
(b) the Second Mezzanine Borrower, (c) the Third Mezzanine Borrower, (d) the Fourth Mezzanine Borrower, (e) the Fifth Mezzanine Borrower and (f) the Sixth Mezzanine
Borrower. 

        "Other Mezzanine Debt Service" shall mean, with respect to any particular period of time, the sum of (a) the First Mezzanine Debt
Service, (b) the Second Mezzanine Debt Service, (c) the Third Mezzanine Debt Service, (d) the Fourth Mezzanine Debt Service, (e) the Fifth Mezzanine Debt Service and
(f) the Sixth Mezzanine Debt Service. 

        "Other Mezzanine Loan" shall mean, individually or collectively, as the context may require, (a) the First Mezzanine Loan,
(b) the Second Mezzanine Loan, (c) the Third Mezzanine Loan, (d) the Fourth Mezzanine Loan, (e) the Fifth Mezzanine Loan and (f) the Sixth Mezzanine Loan. 

        "Other Mezzanine Loan Agreement" shall mean, individually or collectively, as the context may require, (a) the First Mezzanine Loan
Agreement, (b) the Second Mezzanine Loan Agreement, (c) the Third Mezzanine Loan Agreement, (d) the Fourth Mezzanine Loan Agreement, (e) the Fifth Mezzanine Loan Agreement
and (f) the Sixth Mezzanine Loan Agreement. 

        "Other Mezzanine Loan Documents" shall mean, individually or collectively, as the context may require, (a) the First Mezzanine Loan
Documents, (b) the Second Mezzanine Loan Documents, (c) the Third Mezzanine Loan Documents, (d) the Fourth Mezzanine Loan Documents, (e) the Fifth Mezzanine Loan Documents
and (f) the Sixth Mezzanine Loan Documents. 

        "Other Mezzanine Release Amount" shall mean, with respect to any Individual Property, the sum of (a) the First Mezzanine Release
Amount applicable to such Individual Property, (b) the Second Mezzanine Release Amount applicable to such Individual Property, (c) the Third Mezzanine Release Amount applicable to such
Individual Property, (d) the Fourth Mezzanine Release Amount applicable to such Individual Property, (e) the Fifth Mezzanine Release Amount applicable to such Individual Property and
(f) the Sixth Mezzanine Release Amount applicable to such Individual Property. 

        "Other Taxes" shall have the meaning set forth in Section 2.2.9. 

        "Payment Date" shall mean the ninth (9th) day of each calendar month during the term of the Loan. 

        "Permitted Encumbrances" shall mean, with respect to an Individual Property, collectively, (a) the Liens and security interests
created by the Mortgage Loan Documents, the Senior Mezzanine Loan Documents and the Loan Documents, (b) all Liens, encumbrances and other matters disclosed in the Title Insurance Policies
relating to such Individual Property or any part thereof, (c) Liens for which the underlying obligations have been satisfied and which are not taken as exceptions to the Title Insurance
Policies, (d) Liens, if any, for Taxes imposed by any Governmental Authority not yet delinquent, (e) the Master Lease, (f) the Operating Lease, and (g) such other title and
survey exceptions as Lender has approved or may approve in writing in Lender's reasonable discretion. 

        "Permitted Investments" shall have the meaning set forth in the Cash Management Agreement. 

21

 

        "Permitted Release" shall mean the release of a Release Property which is not a Limited Cure Release, an Affected Property Release or an
Unlicensed Facility Release and which is effectuated in accordance with the applicable provisions of Section 2.6 hereof;  provided that the Allocated
Loan Amount for such Release Property, when taken together with the Allocated Loan Amounts in respect of all Release
Properties previously released pursuant to Permitted Releases, Limited Cure Releases, Affected Property Releases and Unlicensed Facility Releases does not exceed, in the aggregate, the Permitted
Release Threshold. 

        "Permitted Release Amount" shall mean, with respect to a Permitted Release, if the Allocated Loan Amount for the Release Property being
released pursuant to such Permitted Release, when aggregated with the Allocated Loan Amounts for any Release Property(ies) previously released pursuant to a Permitted Release, a Limited Cure Release,
an Unlicensed Facility Release or an Affected Property Release, or concurrently being released pursuant to a Permitted Release, a Limited Cure Release, an Unlicensed Facility Release or an Affected
Property Release, (a) is less than or equal to fifteen percent (15%) of the original principal amount of the Loan, 100% of the Allocated Loan Amount of such Release Property, (b) is
greater than fifteen percent (15%) but less than or equal to thirty percent (30%) of the original principal amount of the Loan, 110% of the Allocated Loan Amount of such Release Property, and
(c) is greater than thirty percent (30%) of the original principal amount of the Loan but less than or equal to the Permitted Release Threshold, 115% of the Allocated Loan Amount of such
Release Property. 

        "Permitted Release Threshold" shall mean seventy percent (70%) of the original principal amount of the Loan. 

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

        "Personal Property" shall have the meaning set forth in the granting clauses of the Mortgage with respect to each Individual Property. 

        "Physical Condition Report" shall mean, with respect to each Individual Property, a report prepared by a company satisfactory to Lender
regarding the physical condition of such Individual Property, satisfactory in form and substance to Lender in its reasonable discretion. 

        "Pledge" shall mean a voluntary or involuntary transfer, encumbrance, pledge, mortgage, hypothecation, encumbrance, financing of, grant of
a security interest in or other collateral assignment of a legal or beneficial interest. 

        "Pledge Agreement" shall have the meaning set forth in the Recitals hereto. 

        "Policies" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Pre-Approved Accounting Firm" shall mean any of (a) Deloitte & Touche LLP, (b) KPMG LLP,
(c) PricewaterhouseCoopers LLP and (d) Ernst & Young LLP. 

        "Prescribed Laws" shall mean, collectively, (a) the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56) (The USA PATRIOT Act), as amended, (b) Executive Order No. 13224 on Terrorist Financing, effective
September 24, 2001, and relating to Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism, (c) The Trading with the Enemy Act,
50 U.S.C. App. 1 et seq., (d) the International Emergency Economic Power Act, 50 U.S.C. §1701 et
seq. and (e) all other material Legal Requirements relating to money laundering or terrorism. 

22

 

 

        "Prime Rate" shall mean the annual rate of interest publicly announced by JPMorgan in New York, New York, as its base rate, as such rate
shall change from time to time. If JPMorgan ceases to announce a base rate, the Prime Rate shall mean the rate of interest published in The Wall Street Journal from time to time as the "Prime Rate."
If more than one "Prime Rate" is published in The Wall Street Journal for a day, the average of such "Prime Rates" shall be used, and such average shall be rounded up to the nearest
one-thousandth of one percent (0.001%). If The Wall Street Journal ceases to publish the "Prime Rate," Lender shall select an equivalent publication that publishes such "Prime Rate," and
if such "Prime Rates" are no longer generally published or are limited, regulated or administered by a governmental or quasigovernmental body, then Lender shall reasonably select a comparable interest
rate index. 

        "Prime Rate Loan" shall mean the Loan at such time as interest thereon accrues at a rate of interest based upon the Prime Rate. 

        "Prime Rate Spread" shall mean the difference (expressed as the number of basis points) between (a) the LIBOR Interest Rate plus
the Spread on the date LIBOR was last applicable to the Loan and (b) the Prime Rate on the date that LIBOR was last applicable to the Loan;  provided, however, in no event shall such difference be a negative number. 

        "Principal" shall mean the Special Purpose Entity corporation or limited liability company, if any, which is (a) the managing
member of Borrower, in the event that Borrower is a limited liability company, or (b) a general partner of Borrower, in the event that Borrower is a limited partnership. 

        "Prior Owner" shall mean each and every Person (i) which has ever previously owned, directly or indirectly, a fee or leasehold
interest in any one or more of the Individual Properties, or (ii) which is an Affiliate of any Person described in clause (i) above. 

        "Property" or "Properties" shall mean, collectively, each and every Individual Property
set forth on Schedule I. For the avoidance of doubt, the term "Property" shall (a) exclude (i) any Release Property from and after
the same has been released pursuant to Section 2.6.1 hereof and (ii) any Substituted Property from and after the substitution thereof in
accordance with Section 2.5 hereof and (b) include each Substitute Property from and after the substitution thereof in accordance with  Section 2.5 hereof. 

        "Property Uncross" shall have the meaning set forth in Section 9.8 hereof. 

        "Provided Information" shall mean any and all financial and other information provided at any time by, or on behalf of, and at the
direction of, any Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, any Principal or Guarantor, or any Affiliate of any of the foregoing, with respect to the Collateral, the
Senior Mezzanine Collateral, the Properties, Borrower, Senior Mezzanine Borrower, Maryland Owner, Mortgage Borrower, Master Tenant, Operator, Principal and/or Guarantor. 

        "Public Information" shall have the meaning set forth in Section 10.25 hereof. 

        "Qualified Operator" shall mean, with respect to each Individual Property, (a) the Operator of such Individual Property as of the
Closing Date, (b) HCR Healthcare, LLC or any direct or indirect subsidiary thereof or (c) an operator possessing experience in operating and managing health care properties
similar in size, scope, use and value as such Individual Property or such Substitute Property, as the case may be, which operator, in the case of clauses (a), (b) and (c) above,
is a Special Purpose Entity (Operator), is licensed, as applicable, to operate such Individual Property or Substitute Property, as the case may be, and shall otherwise be reasonably acceptable to
Mortgage Lender and each Designated Mezzanine Lender. 

23

 

        "Qualified Transferee" shall mean a Transferee which is: 

          (i)  a
pension fund, pension trust, pension account, private equity fund or opportunity fund that immediately prior to such transfer either (A) has total real estate
assets with a market value of at least $2,000,000,000 or (B) at the time of such proposed transfer, satisfies the Alternative Transferee Standard; 

         (ii)  a
pension fund advisor, private equity fund or opportunity fund acting on behalf of one or more pension funds that in the aggregate, satisfies the requirements of
clause (i) of this definition; 

        (iii)  an
insurance company which is subject to supervision by the insurance commissioner, or a similar official or agency, of a state or territory of the United States
(including the District of Columbia) (i) with a net worth, determined as of a date no more than six (6) months prior to the date of the proposed transfer, of at least $2,000,000,000, and
(ii) who, either (A) immediately prior to such proposed
transfer, controls, directly and/or indirectly, real estate assets with a market value of at least $2,000,000,000 (exclusive of the Property), or (B) at the time of such proposed transfer,
satisfies the Alternative Transferee Standard; 

        (iv)  an
association organized under the banking laws of the United States or any state or territory of the United States (including the District of Columbia) (i) with
a combined capital surplus of at least $2,000,000,000, and (ii) who, either (A) immediately prior to such transfer, controls, directly or indirectly, real estate assets with a market
value of at least $2,000,000,000 (exclusive of the Property), or (B) at the time of such transfer, satisfies the Alternative Transferee Standard; 

         (v)  a
real estate investment trust or commercial credit corporation (i) with a net worth, determined as of a date no more than six (6) months prior to the date
of the proposed transfer, of at least $2,000,000,000, and (ii) who, either (A) immediately prior to such proposed transfer, controls, directly and/or indirectly, real estate assets with
a market value of at least $2,000,000,000 (exclusive of the Property), or (B) at the time of such proposed transfer, satisfies the Alternative Transferee Standard; 

        (vi)  an
investment bank, money management firm or "qualified institutional buyer" within the meaning of Rule 144A under the Securities Act of 1933, as amended
(i) with a combined capital surplus of at least $2,000,000,000, and (ii) who, either (A) immediately prior to such transfer, controls, directly or indirectly, real estate assets
with a market value of at least $2,000,000,000 (exclusive of the Property) or (B) at the time of such proposed transfer, satisfies the Alternative Transferee Standard; 

       (vii)  any
Person that is wholly owned (directly or indirectly) by a Person described in clauses (i) through (vi) above; or 

      (viii)  any
Person reasonably approved by each Designated Mezzanine Lender. 

        "Quarterly CapEx Budget" shall have the meaning set forth in Section 5.1.11(f)
hereof. 

        "ratably" shall mean, with respect to the Mortgage Lender and each Mezzanine Lender, its respective share of any payment or amount,
including but not limited to, disbursements of Net Proceeds, measured as a fraction (a) the numerator of which shall be the outstanding principal amount of the Mortgage Loan or the applicable
Mezzanine Loan and (b) the denominator of which shall be the aggregate of the outstanding principal amount of the Mortgage Loan and each Mezzanine Loan, in each case as of any date of
determination. 

        "Rating Agencies" shall mean each of S&P, Moody's and Fitch, or any other nationally recognized statistical rating agency that has been
approved by Lender. 

24

 

        "Registrar" shall have the meaning set forth in Section 10.24 hereof. 

        "Registered Loan" shall have the meaning set forth in Section 10.24 hereof. 

        "Regulation AB" shall mean Regulation AB under the Securities Act and the Exchange Act, as such Regulation may be amended
from time to time. 

        "REIT" means a "real estate investment trust", as such term in defined in Section 856 of the Code. 

        "REIT Lender" shall mean any Lender that is a REIT or is an Affiliate of a REIT. 

        "REIT Representations and Covenants" shall mean those certain representations and covenants contained in  Section 5.1.8 hereof. 

        "Related Loan" shall mean a loan made to an Affiliate of Borrower or secured by a Related Property, that is included in a Securitization
with the Loan. 

        "Related Property" shall mean a parcel of real property, together with improvements thereon and personal property related thereto, that is
"related", within the meaning of the definition of Significant Obligor, to one or more of the Individual Properties. 

        "Release Amount" shall mean (a) with respect to a Release Property pursuant to a Permitted Release, the applicable Permitted
Release Amount, (b) with respect to a Release Property pursuant to a Limited Cure Release, the Limited Cure Release Amount, (c) with respect to a Release Property pursuant to an Affected
Property Release, the Affected Property Release Amount, and (d) with respect to a Release Property pursuant to an Unlicensed Facility Release, the Unlicensed Facility Release Amount. 

        "Release Property" shall have the meaning set forth in Section 2.6.1 hereof. 

        "Remaining Costs" shall have the meaning set forth in Section 5.1.23 hereof. 

        "Rent Instruction" shall mean that certain obligation contained in the Master Lease with respect to payments of Rent under the Master
Lease directly into the Cash Management Account. 

        "Rents" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Reorganization Documents" shall mean, collectively, the following instruments being entered into on or about the date hereof among
Borrower, Manor Care or their respective Affiliates: (i) the MILA, (ii) contribution agreements, pursuant to which the Properties were contributed to Borrower and Maryland Owner and
certain other entities that were merged with and into Borrower, (iii) merger agreements, merging certain Affiliates of Manor Care with and into Manor Care or Affiliates of Manor Care,
(iv) the Master Loan Proceeds Distribution Agreement, pursuant to which Borrower and Maryland Owner will distribute the proceeds of the Loan, (v) the Purchase and Novation Agreements
among Manor Care and certain of its Affiliates, (vi) the Receivables Purchase Agreement between Manor Care and certain of its Affiliates, (vii) contribution agreements pursuant to which
operating assets or equity interests in certain Affiliates of Manor Care were contributed to Affiliates of Manor Care, and (viii) various deeds and assignments of leases entered into in
connection with the contribution agreements referred to in (ii) above. 

        "Replacement Interest Rate Cap Agreement" shall mean an interest rate cap agreement from an Acceptable Counterparty delivered by Borrower
pursuant to Section 2.2.8(c) or Section 2.4.4 hereof, all of the material terms of which
interest rate cap agreement shall be substantially similar to those of the then-effective Interest Rate Cap Agreement, except that (a) the notional amount thereof shall be equal to
the outstanding principal amount of the Loan on (i) in the case of an interest rate cap agreement delivered pursuant to Section 2.2.8
hereof, the Cap Replacement 

25

 

Delivery
Date or (ii) in the case of an interest rate cap agreement delivered pursuant to Section 2.4.4 hereof, the first day following
the Mandatory Prepayment Date; (b) the effective date thereof shall be (i) in the case of an interest rate cap agreement delivered pursuant to  Section 2.2.8 hereof, the Cap Replacement
Delivery Date or (ii) in the case of an interest rate cap agreement delivered pursuant to  Section 2.4.4 hereof, the first day following the Mandatory Prepayment Date; and (c) the
expiration date thereof shall be the last day of
the Interest Period corresponding to the Maturity Date; provided, however, that to the extent any such
interest rate cap agreement does not meet the foregoing requirements, a "Replacement Interest Rate Cap Agreement" shall be delivered to Lender and shall
otherwise be reasonably acceptable to Lender. 

        "Replacement Reserve Account" shall have the meaning set forth in Section 7.3.1
hereof. 

        "Replacement Reserve Funds" shall have the meaning set forth in Section 7.3.1
hereof. 

        "Replacement Reserve Deposit" shall have the meaning set forth in Section 7.3.1
hereof. 

        "Replacements" shall have the meaning set forth in Section 7.3.1 hereof. 

        "Required Annual Replacement Expenditure" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Required Opinion" shall have the meaning set forth in Section 5.1.34 hereof. 

        "Required Repairs" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Requisite Operators" shall have the meaning specified in Section 9.3(b). 

        "Reserve Accounts" shall mean, collectively, (a) the Tax and Insurance Reserve Account, (b) the Replacement Reserve Account,
(c) the Low DSCR Interest Floor Reserve Account, (d) the Low DSCR General Reserve Account and (e) any other reserve account established pursuant to the Loan Documents. 

        "Reserve Funds" shall mean, collectively, (a) the Tax and Insurance Funds, (b) the Replacement Reserve Funds, (c) the
Low DSCR Reserve Funds and (d) any other reserve fund established pursuant to the Loan Documents. 

        "Reserve Requirements" shall mean with respect to any Interest Period, the maximum rate of all reserve requirements (including, without
limitation, all basic, marginal, emergency, supplemental, special or other reserves and taking into account any transitional adjustments or other schedule changes in reserve requirements during the
Interest Period) which are imposed under Regulation D on eurocurrency liabilities (or against any other category of liabilities which includes deposits by reference to which LIBOR is determined
or against any category of extensions of credit or other assets which includes loans by a non-United States office of a depository institution to United States residents or loans which
charge interest at a rate determined by reference to such deposits) during the Interest Period and which are applicable to member banks of the Federal Reserve System with deposits exceeding one
billion dollars, but without benefit or credit of proration, exemptions or offsets that might otherwise be available from time to time under Regulation D. The determination of the Reserve
Requirements shall be based on the assumption that Lender funded 100% of the Loan in the interbank eurodollar market. In the event of any change in the rate of such Reserve Requirements under
Regulation D during the Interest Period, or any variation in such requirements based upon amounts or kinds of assets or liabilities, or other factors, including, without limitation, the
imposition of Reserve Requirements, or differing Reserve Requirements, on one or more but not all of the holders of the Loan or any participation therein, Lender may use any reasonable averaging
and/or attribution methods which it deems necessary for determining the rate of such Reserve Requirements which shall be used in the 

26

 

computation
of the Reserve Requirements. Lender's computation of same shall be final absent manifest error. 

        "Restoration" shall mean the repair and restoration of an Individual Property after a Casualty or Condemnation as nearly as possible to
the condition the Individual Property was in immediately prior to such Casualty or Condemnation, with such alterations as may be reasonably approved by Lender. 

        "Restoration Threshold" shall mean, with respect to any Individual Property, an amount equal to the greater of (i) Five Million
Dollars ($5,000,000.00) and (ii) five percent (5%) of the Allocated Loan Amount (as defined in the Mortgage Loan Agreement) of such Individual Property. 

        "Restricted Party" shall mean, collectively (a) Manor Care, each Other Mezzanine Borrower, Borrower, Mortgage Borrower, Maryland
Owner, Principal, Guarantor, Master Tenant or any Operator and (b) any shareholder, partner, member (other than the springing member or special member), direct or indirect legal or beneficial
owner of any of the foregoing. 

        "Sale" shall mean a voluntary or involuntary sale, conveyance, assignment or other Transfer of a legal or beneficial interest in the
Property, other than a Pledge. 

        "S&P" shall mean Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies, Inc. 

        "Second Mezzanine Borrower" shall have the meaning set forth in the Recitals hereof. 

        "Second Mezzanine Debt Service" shall mean, with respect to any particular period of time, scheduled interest payments due under the
Second Mezzanine Note. 

        "Second Mezzanine Deposit Account" shall have the meaning set forth in the Second Mezzanine Loan Agreement. 

        "Second Mezzanine Lender" shall have the meaning set forth in the Recitals hereof. 

        "Second Mezzanine Loan" shall have the meaning set forth in the Recitals hereof. 

        "Second Mezzanine Loan Agreement" shall have the meaning set forth in the Recitals hereof. 

        "Second Mezzanine Loan Documents" shall mean the "Loan Documents" under and as defined in the Second Mezzanine Loan Agreement. 

        "Second Mezzanine Note" shall have the meaning set forth in the Recitals hereof. 

        "Second Mezzanine Noteholders" shall have the meaning set forth in the Recitals hereof. 

        "Second Mezzanine Release Amount" shall mean the "Release Amount" under and as defined in the Second Mezzanine Loan Agreement. 

        "Section 2.2.9 Certificate" shall have the meaning set forth in  Section 2.2.9. 

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

        "Securities Act" shall have the meaning set forth in Section 9.2(a) hereof. 

        "Securitization" shall have the meaning set forth in Section 9.1 hereof. 

        "Senior Mezzanine Borrower" shall mean, individually or collectively, as the context may require, First Mezzanine Borrower, Second
Mezzanine Borrower, Third Mezzanine Borrower, Fourth Mezzanine Borrower, Fifth Mezzanine Borrower and/or Sixth Mezzanine Borrower. 

27

 

        "Senior Mezzanine Collateral" shall mean, individually or collectively, as the context may require, the "Collateral" under and as defined
in the First Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement, the Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan Agreement, the Fifth Mezzanine Loan Agreement and/or the Sixth
Mezzanine Loan Agreement. 

        "Senior Mezzanine Deposit Account" shall mean, individually or collectively, as the context may require, the First Mezzanine Deposit
Account, the Second Mezzanine Deposit Account, the Third Mezzanine Deposit Account, the Fourth Mezzanine Deposit Account, the Fifth Mezzanine Deposit Account and/or the Sixth Mezzanine Deposit
Account. 

        "Senior Mezzanine Lender" shall mean, individually or collectively, as the context may require, First Mezzanine Lender, Second Mezzanine
Lender, Third Mezzanine Lender, the Fourth Mezzanine Lender, the Fifth Mezzanine Lender and/or the Sixth Mezzanine Lender. 

        "Senior Mezzanine Loan" shall mean, individually or collectively, as the context may require, the First Mezzanine Loan, the Second
Mezzanine Loan, the Third Mezzanine Loan, the Fourth Mezzanine Loan, the Fifth Mezzanine Loan and/or the Sixth Mezzanine Loan. 

        "Senior Mezzanine Loan Agreement" shall mean, individually or collectively, as the context may require, the First Mezzanine Loan
Agreement, the Second Mezzanine Loan Agreement, the Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan Agreement, the Fifth Mezzanine Loan Agreement and/or the Sixth Mezzanine Loan Agreement. 

        "Senior Mezzanine Loan Documents" shall mean, individually or collectively, as the context may require, the "Loan Documents" under and as
defined in the First Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement, the Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan Agreement, the Fifth Mezzanine Loan Agreement and/or
the Sixth Mezzanine Loan Agreement. 

        "Senior Mezzanine Loan Event of Default" shall mean, individually or collectively, as the context may require, an "Event of Default" under
and as defined in the First Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement, the Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan Agreement, the Fifth Mezzanine Loan Agreement
and/or the Sixth mezzanine Loan Agreement. 

        "Servicer" shall have the meaning set forth in Section 9.4 hereof. 

        "Servicing Agreement" shall have the meaning set forth in Section 9.4 hereof. 

        "Seventh Mezzanine Deposit Account" shall have the meaning set forth in the Cash Management Agreement. 

        "Seventh Mezzanine Sub-accounts" shall have the meaning set forth in the Cash Management Agreement. 

        "Severed Loan Documents" shall have the meaning set forth in Section 8.2(c) hereof. 

        "Significant Obligor" shall have the meaning set forth in Item 1101(k) of Regulation AB under the Securities Act. 

        "Sixth Mezzanine Borrower" shall have the meaning set forth in the Recitals hereof. 

        "Sixth Mezzanine Borrower Company Agreement" shall mean, individually and collectively, the limited liability company agreements of each
entity making up Sixth Mezzanine Borrower. 

        "Sixth Mezzanine Debt Service" shall mean, with respect to any particular period of time, scheduled interest payments due under the Sixth
Mezzanine Note. 

28

 

        "Sixth Mezzanine Deposit Account" shall have the meaning set forth in the Sixth Mezzanine Loan Agreement. 

        "Sixth Mezzanine Lender" shall have the meaning set forth in the Recitals hereof. 

        "Sixth Mezzanine Loan" shall have the meaning set forth in the Recitals hereof. 

        "Sixth Mezzanine Loan Agreement" shall have the meaning set forth in the Recitals hereof. 

        "Sixth Mezzanine Loan Documents" shall mean the "Loan Documents" under and as defined in the Sixth Mezzanine Loan Agreement. 

        "Sixth Mezzanine Note" shall have the meaning set forth in the Recitals hereof. 

        "Sixth Mezzanine Noteholders" shall have the meaning set forth in the Recitals hereof. 

        "Sixth Mezzanine Release Amount" shall mean the "Release Amount" under and as defined in the Sixth Mezzanine Loan Agreement. 

        "Social Security Act" shall mean 42 U.S.C. 401 et seq., as enacted in 1935, and amended,
restated or otherwise supplemented thereafter from time to time and all rules and regulations promulgated thereunder. 

        "Solvency Certificate" shall mean that certain solvency certificate dated the date hereof delivered by Manor Care in connection with the
Merger and the Loan. 

        "South Carolina Mortgage Borrower" shall mean, individually and collectively as the context requires, each Mortgage Borrower owning South
Carolina Property. 

        "South Carolina Conditions" shall mean (a) that all material approvals and consents have been obtained from all applicable
Governmental Authorities and Health Care Authorities to increase the rent under each Operating Lease of a South Carolina Property to an amount equal to the aggregate of the rent then payable under
each such Operating Lease and the management fee and all other compensation then payable (including escalations thereof) under the South Carolina Management Agreement applicable to such South Carolina
Property, and to amend each such Operating Lease to be on substantially the same terms and conditions as the Operating Leases affecting the Properties located outside of South Carolina,
(b) each Operating Lease of a South Carolina Property has been amended as contemplated by clause (a) above, (c) the Master Lease has been amended, if necessary, to increase the
rent payable thereunder by an amount equal to the aggregate increase in the rent payable under the Operating Leases for the South Carolina Properties pursuant to clause (b) above, and
(d) South Carolina Operators and Master Tenant have provided Lender upon request with estoppel certificates reasonably acceptable to Lender confirming such rent increases and amendments,
together with copies of such documents. 

        "South Carolina Management Agreement" shall mean, collectively and individually as the context shall require, those certain Management
Agreements, each dated as of the Closing Date, entered into with respect to each Individual Property that is located in the State of South Carolina, between the South Carolina Operator that is the
Operator of the applicable Individual Property and Master Tenant. 

        "South Carolina Operator" shall mean, individually and collectively as the context requires, each Operator that is the Operator of a South
Carolina Property. 

        "South Carolina Property" shall mean, individually and collectively as the context shall require, an Individual Property that is located
in the State of South Carolina as listed on Schedule V attached hereto. "South Carolina Property" shall not include any Substitute Property
located in the State of South Carolina. 

29

 

        "Special Purpose Entity" shall mean (a) with respect to any Borrower, Special Purpose Entity (Borrower), (b) with respect to
any Operator, Special Purpose Entity (Operator), (c) with respect to the Master Tenant, Special Purpose Entity (Master Tenant), and (d) with respect to any Person other than Borrower,
Operator and Master Tenant, the definition of "Special Purpose Entity (Borrower)" shall apply mutatis mutandis. 

        "Special Purpose Entity (Borrower)" shall mean a limited liability company which, except to the extent required by the Loan Documents, at
all times since its formation, and on and after the date hereof until the Debt is paid in full: 

        (a)   is
organized solely for the purpose of (i) acquiring, owning, holding, managing and otherwise dealing with its limited liability interest, the Sixth Mezzanine
Borrower, and engaging in such actions and exercising such authority as are consistent with being the sole member of such Persons, (ii) entering into and performing its obligations under the
Loan Documents (including, without limitation, borrowing money thereunder and incurring the obligations thereunder) and the Corporate Services Agreement to which it is a party dated as of the date
hereof by and among itself, HCR Manor Care Services, Inc. and certain other of its Affiliates, (iii) selling, transferring, servicing, conveying, disposing of, pledging, assigning,
borrowing money against, financing, refinancing or otherwise dealing with the Collateral to the extent permitted under the Loan Documents; and (iv) engaging in any lawful act or activity and
exercising any powers permitted to limited liability companies organized under the laws of the State of Delaware that are related or incidental to and necessary, convenient or advisable for the
accomplishment of the above-mentioned purposes, including entering into interest rate cap agreements; 

        (b)   is
not engaged and will not engage, directly or indirectly, in any business other than those activities required or permitted to be performed under the Loan Documents,
including pursuant to this definition of "Special Purpose Entity" and Subsection (a) above, as applicable; 

        (c)   does
not have and will not have any assets other than those (i) equity interests of the Sixth Mezzanine Borrower, the Collateral, cash, cash equivalents and
investment grade securities and (ii) incidental personal property necessary for the ownership or operation of the Collateral; 

        (d)   to
the fullest extent permitted by law, has not engaged, and will not engage in, any dissolution, liquidation, consolidation, merger, sale or transfer of all or
substantially all of its assets, except as permitted by the Loan Documents; 

        (e)   if
such entity is a limited liability company with only one member, is a limited liability company organized in the State of Delaware that has (i) as its only
member a non-managing member, (ii) at least two (2) Independent Directors (Borrower) and has not caused or allowed and will not cause or allow the board of directors of such
entity to take any action requiring the unanimous affirmative vote of one hundred percent (100%) of the directors and the Independent Directors (Borrower) unless two Independent Directors (Borrower)
shall have participated in such vote and (iii) at least two (2) springing members, each of which shall be either an individual or a "special purpose corporation" whose stock is one
hundred percent (100%) owned by the sole member of such entity, either one of whom will become the non-managing member of such entity upon the dissolution of the existing
non-managing member; 

        (f)    has
articles of organization, a certificate of formation and/or an operating agreement which provide that such entity will not: (A) dissolve, merge, liquidate,
consolidate; (B) sell all or substantially all of its assets except as permitted pursuant to the Loan Documents; (C) engage in any other business activity, or amend its organizational
documents with respect 

30

 

to
the matters set forth in this definition without the consent of Lender; or (D) without the affirmative vote of two Independent Directors (Borrower) and of all other directors of the
corporation (that is the managing or co-managing member of such entity), file a bankruptcy or insolvency petition or otherwise institute insolvency proceedings with respect to
itself or to any other Person in which it has a direct or indirect legal or beneficial ownership interest; 

        (g)   is
maintaining and will maintain adequate capital in light of its contemplated business purpose, transactions and liabilities;  provided, however, that the
foregoing shall not require its member to make any additional capital
contributions; 

        (h)   intentionally
omitted; 

        (i)    has
maintained and will maintain its bank accounts, books and records separate from any other Person; 

        (j)    except
as contemplated or permitted by the Loan Documents, has not commingled and will not commingle its assets with those of any other Person; 

        (k)   has
conducted and will conduct its business only in its own name; 

        (l)    has
maintained and will maintain its financial statements, showing its assets and liabilities separate and apart from any other Person and has not permitted and will not
permit its assets to be listed as assets on the financial statement of any other Person; provided,  however, that that each of the Borrower's assets may be
included in a consolidated financial statement of any of their Affiliates  provided that (i) to the extent consistent with GAAP, any such consolidated financial statements contain a note indicating
that each of the
Borrower's assets and credit are not available to satisfy the debts and other obligations of such Affiliate or any other Person and (ii) such assets shall also be listed on each of the
Borrower's own separate balance sheet; 

        (m)  except
to the extent permitted by the Loan Documents, has paid and will pay its own liabilities and expenses, including the salaries of its own employees, if any, out of
its own funds and has maintained
and will maintain a number of employees, if any, that Borrower believes to be reasonably sufficient to conduct its business in light of its contemplated business purpose; 

        (n)   has
observed and will observe all limited liability company formalities necessary to maintain its separate existence; 

        (o)   has
and will have no Indebtedness other than (i) the Loan, (ii) liabilities incurred by Borrower in the ordinary course of business relating to the
ownership of the Collateral and the routine administration of Borrower and Sixth Mezzanine Borrower, in amounts not to exceed, $100,000, which liabilities are not more than sixty (60) days past
the date incurred, are not evidenced by a note, and which amounts are normal and reasonable under the circumstances, and (iv) such other liabilities as are expressly permitted pursuant to this
Agreement; 

        (p)   except
as contemplated or permitted by the Loan Documents, has not and will not guarantee or become obligated for the debts of any other Person or hold out its credit or
assets as being available to pay the obligations of any other Person; 

        (q)   except
as contemplated or permitted by the Loan Documents, has not and will not acquire obligations or securities of its members or any other Affiliate, except for the
Collateral; 

31

 

        (r)   has
allocated and will allocate fairly and reasonably any overhead expenses that are shared with any Affiliate, including for shared office space and services performed
by any employee of an Affiliate; 

        (s)   except
as contemplated or permitted by the Loan Documents, has not pledged and will not pledge its assets to secure the obligations of any other Person; 

        (t)    has
held itself out and will hold itself out to the public and all other Persons and identify itself as a legal entity separate from its member and any other Person and
not as a division or department of any other Person; 

        (u)   shall
not make or permit to remain outstanding any loan or advance to, or own or acquire any stock or securities of, any Person (other than the Sixth Mezzanine
Borrower), except that the Borrower may
invest in those investments permitted under the Loan Documents and may make any advance required or permitted to be made pursuant to any provisions of the Loan Documents and permit the same to remain
outstanding in accordance with such provisions; 

        (v)   has
filed and shall file its own tax returns, separate from those of any other Person except (i) to the extent that it is treated as a "disregarded entity" for
tax purposes and is not required to file tax returns under applicable law or (ii) to the extent required by applicable law, and pay any taxes so required to be paid under applicable law from
its own funds; 

        (w)  except
for capital contributions or capital distributions permitted under the terms and conditions of its organizational documents and properly reflected on its books
and records, and except transactions permitted by the Loan Documents, not enter into any transaction with any of its Affiliate except on commercially reasonable terms similar to those available to
unaffiliated parties in an arm's-length transaction; 

        (x)   has
not and will not have any obligation to, and will not, indemnify its officers, directors or members, as the case may be, unless such an obligation is fully
subordinated to the Debt and will not constitute a claim against it in the event that cash flow in excess of the amount required to pay the Debt is insufficient to pay such obligation; 

        (y)   does
not and will not have any of its obligations guaranteed by any Affiliate, except as contemplated by the Loan Documents; 

        (z)   if
such entity is a Delaware limited liability company, it shall have its own board of directors or board of managers, and shall cause such board to meet at least
annually or act pursuant to written consent and keep minutes of such meetings and actions and observe all other limited liability company formalities; 

        (aa) has
complied and will comply with all of the terms and provisions contained in its organizational documents. The statement of facts contained in its organizational
documents are true and correct and will remain true and correct; 

        (bb) except
for the Senior Mezzanine Borrowers, Mortgage Borrowers (other than Maryland Borrower) and Maryland Owner, as applicable, has not and will not form, acquire, or
hold any subsidiary or own any equity interest in any other entity; 

        (cc) has
used and shall use separate stationery, invoices and checks bearing its own name; 

        (dd) except
as contemplated or permitted by the Loan Documents, shall not buy or hold evidence of indebtedness issued by any other Person (other than cash, cash equivalents,
certificates of deposit, interests in bank accounts or investment-grade securities); 

32

 

        (ee) with
respect to all capital contributions and distributions, has duly authorized the receipt or making of such capital contributions and distributions and has duly
recorded such action in its books and records, in accordance with applicable organizational documents and applicable law; and 

        (ff)  cause
its directors, officers, agents and other representatives to act at all times with respect to the Borrower consistently and in furtherance of the foregoing 

        "Special Purpose Entity (Master Tenant)" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Special Purpose Entity (Operator)" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Spread" shall mean four percent (4.0%) per annum. 

        "Spread Maintenance Premium" shall mean, with respect to each repayment of any of the outstanding principal amount of the Loan prior to
the Lockout Release Date, an amount equal to the product of (i) the principal amount of the Loan to be prepaid, (ii) the Spread, (iii) the number of days from and including the
date of prepayment (1) through and including the Mandatory Prepayment Date, unless Borrower satisfies the terms and provisions of  Section 2.4.4 hereof and is not required to prepay the Debt on
the Mandatory Prepayment Date, in which case (2) through and including the
Maturity Date, and (iv) 1/360. 

        "State" shall mean, with respect to an Individual Property, the State or Commonwealth in which such Individual Property or any part
thereof is located. 

        "Strike Price" shall mean five and one quarter percent (5.25%). 

        "Subordinations of South Carolina Management Agreement" shall mean, individually and collectively as the context shall require, those
certain Subordinations of Management Agreement, dated as of the date hereof, made by the South Carolina Operators in favor of Lender and consented to by Master Tenant and the South Carolina Mortgage
Borrowers. 

        "Substitute Property" shall have the meaning set forth in Section 2.5 hereof. 

        "Substitute Property Borrower" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Substitute Property Lien Documents" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Substitute Property Operator" shall have the meaning set forth in the Mortgage Loan Agreement. 

        "Substituted Property" shall have the meaning set forth in Section 2.5 hereof. 

        "Substitution Effective Date" shall have the meaning set forth in Section 2.5
hereof. 

        "Survey" shall mean, with respect to each Individual Property, the survey of such Individual Property reviewed and reasonably approved by
Lender prior to the Closing Date and containing a certification to Lender customary for loan transactions similar to the Loan. 

        "Tax and Insurance Reserve Account" shall have the meaning set forth in Section 7.2
hereof. 

        "Tax and Insurance Reserve Funds" shall have the meaning set forth in Section 7.2
hereof. 

        "Taxes" shall mean all real estate and personal property taxes, assessments, water rates or sewer rents, now or hereafter levied or
assessed or imposed against any Individual Property or part thereof. 

        "Third Mezzanine Borrower" shall have the meaning set forth in the Recitals hereof. 

33

 

 

        "Third Mezzanine Debt Service" shall mean, with respect to any particular period of time, scheduled interest payments due under the Third
Mezzanine Note. 

        "Third Mezzanine Deposit Account" shall have the meaning set forth in the Third Mezzanine Loan Agreement. 

        "Third Mezzanine Lender" shall have the meaning set forth in the Recitals hereof. 

        "Third Mezzanine Loan" shall have the meaning set forth in the Recitals hereof. 

        "Third Mezzanine Loan Agreement" shall have the meaning set forth in the Recitals hereof. 

        "Third Mezzanine Loan Documents" shall mean the "Loan Documents" under and as defined in the Third Mezzanine Loan Agreement. 

        "Third Mezzanine Note" shall have the meaning set forth in the Recitals hereof. 

        "Third Mezzanine Noteholders" shall have the meaning set forth in the Recitals hereof. 

        "Third Mezzanine Release Amount" shall mean the "Release Amount" under and as defined in the Third Mezzanine Loan Agreement. 

        "Threshold Amount" shall have the meaning set forth in Section 5.1.23(a) hereof. 

        "Title Insurance Policies" shall mean, with respect to each Individual Property, an ALTA mortgagee title insurance policy in a form
customary for loan transactions similar to the Mortgage Loan (or, if an Individual Property is in a State which does not permit the issuance of such ALTA policy, such form as shall be permitted in
such State and reasonably acceptable to Mortgage Lender), issued with respect to such Individual Property with endorsements customary in the jurisdiction where such Individual Property is located and
insuring the lien of the Mortgage encumbering such Individual Property. 

        "Transfer" shall have the meaning set forth in Section 5.2.10(b) hereof. 

        "Transferee" shall have the meaning set forth in Section 5.2.10(e)(ii) hereof. 

        "Trigger Event" shall mean that on any date of determination, the Debt Service Coverage Ratio for the prior calendar quarter was less than
1.10:1.0. 

        "Trigger Period" shall mean a period commencing on the day after the last day of a calendar quarter with respect to which a Trigger Event
has occurred and ending on the date on which Borrower establishes in accordance with Section 7.1.2 that the Debt Service Coverage Ratio for the
calendar quarter occurring immediately prior to the calendar quarter in which such date occurs has been greater than or equal to 1.10:1.0. 

        "True-Lease Opinion" shall mean that certain true lease opinion letter dated the date hereof delivered by Latham &
Watkins LLP in connection with the Loan. 

        "UCC" or "Uniform Commercial Code" shall mean the Uniform Commercial Code as in effect
from time to time in the applicable State in which an Individual Property is located. 

        "UCC Title Insurance Policy" shall mean, with respect to the Collateral pledged under the Pledge Agreement, a UCC title insurance policy
in the form acceptable to Lender issued with respect to such Collateral and insuring the lien of the Pledge Agreement encumbering such Collateral. 

        "Unlicensed Facility Release" shall have the meaning set forth in Section 5.1.33
hereof. 

        "Unlicensed Facility Release Amount" shall have the meaning set forth in  Section 5.1.33 hereof. 

34

 

        "U.S. Obligations" shall mean non-redeemable securities evidencing an obligation to timely pay principal and/or interest in a
full and timely manner that are direct obligations of the United States of America for the payment of which its full faith and credit is pledged. 

        "Veterans Administration" shall mean the United States Department of Veterans Affairs. 

        Section 1.2.    Principles of Construction.    All references
to sections and schedules are to sections and schedules in or to this Agreement unless otherwise specified. All uses of the word "including" shall mean "including, without limitation" unless the
context shall indicate otherwise. Unless otherwise specified, the words "hereof," "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement. Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural
forms of the terms so defined. With respect to cross-references contained herein to the Mortgage Loan Documents or the Other Mezzanine Loan Documents or any Mortgage Loan Document or any Other
Mezzanine Loan Document (including with respect to any cross-references to defined terms therein), unless otherwise specifically provided herein, such cross-references shall be with respect to the
Mortgage Loan Documents or the Other Mezzanine Loan Documents or such Mortgage Loan Document or such Other Mezzanine Loan Document, as the case may be, in existence as of the date hereof, and no
modification or amendment to such cross-referenced sections of the Mortgage Loan Documents or the Other Mezzanine Loan Documents or any Mortgage Loan Document or any Other Mezzanine Loan Document
shall be binding upon Lender or Borrower unless Lender and Borrower shall have expressly agreed in writing to be bound by such modification or amendment. Notwithstanding anything stated herein to the
contrary, any provisions in this Agreement cross-referencing provisions of the Mortgage Loan Agreement shall be effective notwithstanding the termination of the Mortgage Loan Agreement by payment in
full of the Mortgage Loan or otherwise. The words "Borrower shall cause Mortgage Borrower to," "Borrower shall cause Mortgage Borrower not to," "Borrower shall cause Maryland Owner to," or "Borrower
shall cause Maryland Owner not to," (or words of similar meaning) shall mean Borrower shall cause each Senior Mezzanine Borrower to cause Mortgage Borrower and/or Maryland Owner, as applicable, so to
act or not so to act, as applicable. The words "Borrower shall cause Operator to" or "Borrower shall not permit Operator to" or "Borrower shall cause Master Tenant to" (or words of similar meaning)
shall mean Borrower shall cause Senior Mezzanine Borrower to cause Mortgage Borrower and Maryland Owner to cause Master Tenant to cause Operator, as the case may be, to so act or not to so act, as
applicable. 

        II.    GENERAL TERMS    

        Section 2.1.    Loan Commitment; Disbursement to Borrower.    

        2.1.1.    Agreement to Lend and Borrow.    Subject to and upon the
terms and conditions set forth herein, the Noteholders hereby agree to make, and Borrower hereby agrees to accept, the Loan on the Closing Date. 

        2.1.2.    Single Disbursement to Borrower.    The principal amount of
the Loan shall be advanced to Borrower in one advance on the Closing Date. Any amount borrowed and repaid hereunder in respect of the Loan may not be reborrowed. 

        2.1.3.    The Note and Loan Documents.    The Loan shall be evidenced
by the Note and secured by the Pledge Agreement and the other Loan Documents. 

        2.1.4.    Use of Proceeds.    Borrower shall use the proceeds of the
Loan solely to (a) make an equity contribution to Mortgage Borrower and Maryland Owner through Senior Mezzanine Borrower in order to cause Mortgage Borrower and Maryland Owner to use such
amounts for any use permitted pursuant to Section 2.1.4 of the Mortgage Loan Agreement, (b) pay costs and expenses incurred in connection 

35

 

with
the closing of the Loan, as approved by Lender and (c) distribute the balance, if any, at Borrower's option in whole or in part to Borrower's members. 

        Section 2.2.    Interest Rate.    

        2.2.1.    Intentionally Omitted.    

        2.2.2.    Interest Rate.    Interest on the principal balance of the
Note outstanding from time to time shall accrue from the Closing Date up to but (except in the case of an acceleration thereof) excluding the Maturity Date (including all interest that would accrue on
the outstanding principal balance of the Loan through the end of the Interest Period during which the Maturity Date occurs in the event of an acceleration thereof even if such period extends beyond
the Maturity Date) at the Applicable Interest Rate or the Default Rate as provided herein, if applicable. Interest on the outstanding principal balance of the Loan existing on the commencement of an
Interest Period shall accrue for the entire Interest Period and shall be owed by Borrower for the entire Interest Period regardless of whether any principal portion of the Loan is repaid prior to the
expiration of such Interest Period. 

        2.2.3.    Interest Calculation.    Interest on the outstanding
principal balance of the Note shall be calculated by multiplying (a) the actual number of days elapsed in the period for which the calculation is being made by (b) a daily rate based on
a three hundred sixty (360) day year by (c) the outstanding principal balance. 

        2.2.4.    Determination of Interest Rate.    (a) Subject to the
terms and conditions of this Section 2.2.4, the Loan shall be a LIBOR Loan and Borrower shall pay interest on the outstanding principal amount of
the Note at the LIBOR Interest Rate plus the Spread for the applicable Interest Period. Any change in the rate of interest hereunder due to a change in the Applicable Interest Rate shall become
effective as of the opening of business on the first day on which such change in the Applicable Interest Rate shall become effective. Each determination by Lender of the Applicable Interest Rate shall
be presumptively correct, absent manifest error. 

        (b)   In
the event that Lender shall have determined (which determination shall be presumptively correct, absent manifest error) that by reason of circumstances affecting the
interbank eurodollar market, adequate and reasonable means do not exist for ascertaining LIBOR, then Lender shall forthwith give notice by telephone of such determination, confirmed in writing, to
Borrower at least two (2) Business Days prior to the last day of the related Interest Period. If such notice is given, the related outstanding LIBOR Loan shall be converted, from and after the
first day of the next succeeding Interest Period, to a Prime Rate Loan. 

        (c)   If,
pursuant to the terms of this Agreement, any portion of the Loan has been converted to a Prime Rate Loan and Lender shall determine (which determination shall be
shall be presumptively correct absent manifest error) that the event(s) or circumstance(s) which resulted in such conversion shall no longer be applicable, Lender shall give notice by telephone of
such determination, confirmed in writing, to Borrower at least one (1) Business Day prior to the last day of the related Interest Period. If such notice is given, the related outstanding Prime
Rate Loan shall be converted to a LIBOR Loan from and after the first day of the next succeeding Interest Period. 

        (d)   Intentionally
Omitted. 

        (e)   If
any requirement of law or any change therein or in the interpretation or application thereof shall hereafter make it unlawful for Lender to make or maintain a LIBOR
Loan as contemplated hereunder (i) the obligation of Lender hereunder to make a LIBOR Loan or to convert a Prime Rate Loan to a LIBOR Loan shall be canceled forthwith until such time as such
change or interpretation ceases to exist and (ii) any outstanding LIBOR Loan shall be converted automatically to a Prime Rate Loan on the next succeeding Payment Date or within such earlier
period as required by law. Borrower hereby agrees to promptly pay Lender, within ten (10) Business Days following written demand, any 

36

 

additional
amounts necessary to compensate Lender for any reasonable costs actually incurred by Lender in making any conversion in accordance with this Agreement, including any interest or fees
payable by Lender to lenders of funds obtained by it in order to make or maintain the LIBOR Loan hereunder. Lender's notice of such costs, as certified to Borrower, shall be presumptively correct
absent manifest error; provided, however, within ten (10) Business Days after Borrower's written
request, Lender shall furnish Borrower with a statement of such additional amounts, specifying same in reasonable detail, which statement shall be presumptively correct, absent manifest error. 

        (f)    In
the event that any change in any material requirement of law or in the interpretation or application thereof, or material compliance by Lender with any request or
directive (whether or not having the force of law) hereafter issued from any central bank or other Governmental Authority (as used in this  Section 2.2.4(f), a "change or issuance"): 

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

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

        (iii)  shall
hereafter impose on Lender any other condition (other than, for the avoidance of doubt, the imposition or change in rate of a General Tax) and the result of any
of the foregoing is to increase the cost to Lender of making, renewing or maintaining loans or extensions of credit or to reduce any amount payable hereunder; 

then,
in any such case, Borrower shall promptly pay Lender, within ten (10) Business Days after demand and receipt of a reasonably detailed invoice, any additional amounts necessary to
compensate Lender for such additional cost or reduced amount payable (including, for the avoidance of doubt, any General Taxes arising from or with respect to any such additional amounts) which Lender
deems to be material as determined by Lender in its reasonable discretion. If Lender becomes entitled to claim any additional amounts pursuant to this  Section 2.2.4(f), Lender shall provide
Borrower with not less than ninety (90) days notice specifying in reasonable detail the event by
reason of which it has become so entitled and the additional amount required to fully compensate Lender for such additional cost or reduced amount. A certificate as to any additional costs or amounts
payable pursuant to the foregoing sentence submitted by Lender to Borrower shall be presumptively correct in the absence of manifest error. This provision shall survive payment of the Note and the
satisfaction of all other obligations of Borrower under this Agreement and the Loan Documents, provided that such amount owed was incurred, or relates
to any change or issuance that occurred, at the time the Debt was outstanding. Notwithstanding anything to the contrary in this Section 2.2.4,
Borrower shall not be required to compensate Lender pursuant to this Section 2.2.4 for any amounts incurred more than ninety (90) days
prior to the date that Lender notifies Borrower of Lender's intention to claim compensation therefor. 

        (g)   Borrower
agrees to indemnify and defend Lender and to hold Lender harmless from and against any loss or expense which Lender sustains or actually incurs as a consequence
of (i) any default by Borrower in payment of the principal of or interest on a LIBOR Loan, including any such loss or expense arising from interest or fees payable by Lender to lenders of funds
obtained by it in order to maintain a LIBOR Loan hereunder, (ii) any prepayment (whether voluntary or mandatory) of the LIBOR Loan on a day that (A) is not a Payment Date or
(B) is a Payment Date if Borrower did not give the prior notice of such prepayment required pursuant to the terms of this Agreement, including such loss or expense arising from interest or fees
payable by Lender to lenders of funds obtained by it 

37

 

in
order to maintain the LIBOR Loan hereunder and (iii) the conversion (for any reason whatsoever, whether voluntary or involuntary) of the Applicable Interest Rate from the LIBOR Interest Rate
plus the Spread to the Prime Rate plus the Prime Rate Spread with respect to any portion of the outstanding principal amount of the Loan then bearing interest at the LIBOR Interest Rate plus the
Spread on a date other than the first day of an Interest Period, including such loss or expenses arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain
a LIBOR Loan hereunder (the amounts referred to in clauses (i), (ii) and (iii) are herein referred to collectively as the "Breakage
Costs"), provided, however, Borrower shall not be obligated to indemnify Lender
for any cost or expense arising from Lender's willful misconduct or gross negligence. This provision shall survive payment of the Note in full and the satisfaction of all other obligations of Borrower
under this Agreement and the other Loan Documents, provided that such amount owed was incurred at the time the Debt was outstanding. 

        2.2.5.    Additional Costs.    Lender will use reasonable efforts
(consistent with legal and regulatory restrictions) to maintain the availability of the LIBOR Loan and to avoid or reduce any increased or additional costs payable by Borrower under  Section 2.2.4,
including, if requested by Borrower, a transfer or assignment of the Loan to a branch, office or Affiliate of Lender in another
jurisdiction, or a redesignation of its lending office with respect to the Loan, in order to maintain the availability of the LIBOR Loan or to avoid or reduce such increased or additional costs,  provided that the transfer or assignment or redesignation (a) would not result in any additional costs, expenses or risk to Lender that are not
reimbursed by Borrower and (b) would not cause Lender to suffer any economic, legal or regulatory disadvantage as determined by Lender in its reasonable discretion. 

        2.2.6.    Default Rate.    In the event that, and for so long as, any
Event of Default shall be continuing, the outstanding principal balance of the Note and, to the extent permitted by law, all accrued and unpaid interest in respect of the Note and any other amounts
due pursuant to the Loan Documents, shall accrue interest at the Default Rate, calculated from the date such Event of Default shall have occurred after giving effect to any applicable notice and grace
periods; provided, however, that any amounts expended by Lender due to a Default for which Borrower is
obligated under the Loan Documents to reimburse Lender shall accrue interest at the Default Rate calculated from the date expended without regard to any grace or cure periods contained herein. 

        2.2.7.    Usury Savings.    This Agreement, the Note and the other
Loan Documents are subject to the express condition that at no time shall Borrower be obligated or required to pay interest on the principal balance of the Loan at a rate which could subject Lender to
either civil or criminal liability as a result of being in excess of the Maximum Legal Rate. If, by the terms of this Agreement or the other Loan
Documents, Borrower is at any time required or obligated to pay interest on the principal balance due hereunder at a rate in excess of the Maximum Legal Rate, the Applicable Interest Rate or the
Default Rate, as the case may be, shall be deemed to be immediately reduced to the Maximum Legal Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed to have been
payments in reduction of principal and not on account of the interest due hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of the sums due under the Loan,
shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the full stated term of the Loan until payment in full so that the rate or amount of interest
on account of the Loan does not exceed the Maximum Legal Rate of interest from time to time in effect and applicable to the Loan for so long as the Loan is outstanding. 

        2.2.8.    Interest Rate Cap Agreement.    (a) On or prior to
the Closing Date, Borrower shall enter into an Interest Rate Cap Agreement with a LIBOR strike price equal to or less than the Strike Price. The Interest Rate Cap Agreement (i) shall be with an
Acceptable Counterparty, (ii) shall direct such Acceptable Counterparty to deposit directly into the Seventh Mezzanine Deposit Account all amounts due Borrower under such Interest Rate Cap
Agreement so long as any portion of the Debt exists, (iii) shall be for the period from the Closing Date through the Mandatory Prepayment Date and 

38

 

(iv) shall
have an initial notional amount equal to the principal balance of the Loan. Borrower shall collaterally assign to Lender, pursuant to the Collateral Assignment of Interest Rate Cap
Agreement, all of its right, title and interest to receive any and all payments under the Interest Rate Cap Agreement, and shall deliver to Lender an executed counterpart of such Interest Rate Cap
Agreement (which shall, by its terms, authorize the assignment to Lender and require that payments be deposited directly into the Seventh Mezzanine Deposit Account). Lender hereby accepts the Interest
Rate Cap Agreement that is the subject of the Collateral Assignment of Interest Rate Cap Agreement and agrees it complies with the requirements of this  Section 2.2.8. 

        (b)   Borrower
shall comply with all of its obligations under the material terms and provisions of the Interest Rate Cap Agreement. All amounts paid by the Counterparty under
the Interest Rate Cap Agreement to Borrower shall be deposited directly into the Seventh Mezzanine Deposit Account or into such other account as specified by Lender. 

        (c)   In
the event of any downgrade, withdrawal or qualification of the rating of the Counterparty below the Minimum Counterparty Rating, Borrower, upon reasonable notice of
such downgrade, withdrawal or qualification, shall replace the Interest Rate Cap Agreement (such date of replacement, which date shall in no event be later than the Cap Replacement Delivery Deadline,
the "Cap Replacement Delivery Date") with a Replacement Interest Rate Cap Agreement (and shall deliver to Lender one or more legal opinions issued by
counsel (which counsel may be in-house counsel for the counterparty) to the Counterparty (and any guarantor thereof) which are in form and substance substantially similar to the opinions
delivered to Lender on the Closing Date or are otherwise reasonably acceptable to Lender) not later than ten (10) Business Days after the occurrence of such downgrade, withdrawal or
qualification (such date, the "Cap Replacement Delivery Deadline"). 

        (d)   In
connection with any release pursuant to and in accordance with Section 2.6 hereof or in connection with any
application by Lender of Net Liquidation Proceeds After Debt Service to the Debt in accordance with Section 2.4.2 hereof, in the event that the
notional amount of the Interest Rate Cap Agreement or any Replacement Interest Rate Cap Agreement, as applicable, exceeds the outstanding principal balance of the Loan (after giving effect to the
release and the application of the Loan Release Payments as provided in Section 2.6 hereof or of the application of Net Proceeds), Borrower shall
have the right, at its sole cost and expense, to cause the notional amount of such Interest Rate Cap Agreement or Replacement Cap Agreement, as applicable, to be reduced to an amount not less than
such outstanding principal balance provided that (i) no Event of Default shall be continuing, (ii) Borrower shall have delivered to Lender
the documentation to effect such reduction not less than ten (10) Business Days prior to the effective date of such reduction and (iii) such reduction does not result in the notional
amount of such Interest Rate Cap Agreement or Replacement Cap Agreement, as applicable, being reduced below the outstanding principal balance of the Loan. Upon the modification of the Interest Rate
Cap Agreement or delivery of such Replacement Cap Agreement, Borrower shall obtain and deliver to Lender an opinion from counsel (which counsel may be in-house counsel for the
Counterparty) for the Counterparty (upon which Lender, its successors and assigns and the Rating Agencies may rely) which is in form and substance substantially similar to the opinions delivered to
Lender on the Closing Date or is otherwise reasonably acceptable to Lender. 

        2.2.9.    Taxes.    (a) Any and all payments by the Borrower
under or in respect of this Agreement or any other Loan Documents to which the Borrower is a party shall be made free and clear of, and without deduction or withholding for or on account of, any and
all present or future income, franchise, sales, use or other taxes, duties, levies, imposts, deductions, charges or withholdings, and all liabilities (including penalties, interest and additions to
tax) with respect thereto, whether now or hereafter imposed, levied, collected, withheld or assessed by any taxation authority or other Governmental Authority (collectively,
"General Taxes"), unless required by law. If the Borrower shall be required under any requirement of law to deduct or withhold any General Taxes from or
in respect of any sum payable under or in respect of this Agreement or any of the other Loan Documents to the Lender 

39

 

(including
for all purposes of this Section 2.2.9 any assignee, successor or participant), (i) Borrower shall make all such deductions and
withholdings in respect of General Taxes, (ii) Borrower shall pay the full amount deducted or withheld in respect of General Taxes to the relevant taxation authority or other Governmental
Authority in accordance with any requirement of law, and (iii) the sum payable by Borrower shall be increased as may be necessary so that after Borrower has made all required deductions and
withholdings (including deductions and withholdings applicable to additional amounts payable under this Section 2.2.9) such Lender receives an
amount equal to the sum it would have received had no such deductions or withholdings been made in respect of Non-Excluded Taxes. For purposes of this Agreement the term
"Non-Excluded Taxes" shall mean General Taxes other than, in the case of a Lender, General Taxes that are imposed on its net income, net
profits or capital (and franchise taxes imposed in lieu thereof), or branch profits taxes that are imposed, by the jurisdiction under the laws of which such Lender is organized or of its applicable
lending office, or any political subdivision thereof, unless such General Taxes are imposed as a result of such Lender having executed, delivered or performed its obligations or received payments
under, or enforced, this Agreement or any of the other Loan Documents but only if the Lender would not have been subject to such General Taxes in the jurisdiction generally had the Lender not entered
into this Agreement or any other Loan Document (in which case such General Taxes will be treated as Non-Excluded Taxes). 

        (b)   In
addition, Borrower hereby agrees to pay any present or future stamp, recording, documentary, excise, property or value-added taxes, or similar taxes, charges or
levies that arise from any payment made under or in respect of this Agreement or any other Loan Document or from the execution, delivery or registration of, any performance under, or otherwise with
respect to, this Agreement or any other Loan Document (collectively, "Other Taxes"). 

        (c)   Borrower
hereby agrees to indemnify Lender for, and to hold it harmless against, the full amount of Non-Excluded Taxes and Other Taxes, and the full amount
of General Taxes of any kind imposed by any jurisdiction on amounts payable under this Section 2.2.9 imposed on or paid by such Lender and any
liability (including penalties, additions to tax, interest and expenses) arising therefrom or with respect thereto. The indemnity by Borrower provided for in this  Section 2.2.9(c) shall apply and
be made whether or not the Non-Excluded Taxes or Other Taxes for which indemnification hereunder is
sought have been correctly or legally asserted. Amounts payable by Borrower under the indemnity set forth in this Section 2.2.9(c) shall be paid
within ten (10) days from the date on which Lender makes written demand therefor. 

        (d)   Within
thirty (30) days after the date of any payment of General Taxes, Borrower (or any Person making such payment on behalf of Borrower) shall furnish to Lender
for its own account a certified copy of the original official receipt or such other evidence that is reasonably satisfactory to Lender evidencing payment thereof. For purposes of subsection (e)
of this Section 2.2.9, the terms "United States" and "United States person" shall have the meanings specified in Section 7701 of the
Internal Revenue Code. 

        (e)   Each
Lender (including for avoidance of doubt any assignee, successor or participant) (a "Non-Exempt Lender")
shall deliver or cause to be delivered to Borrower, but only if it is legally able to do so, the following properly completed and duly executed documents: 

          (i)  in
the case of a Lender that is not a United States person, a complete and executed (x) U.S. Internal Revenue Form W-8BEN with Part II
completed if Lender is able to claim the benefits of a tax treaty with the United States providing for a zero or reduced rate of withholding (or any successor forms thereto), including all appropriate
attachments or (y) a U.S. Internal Revenue Service Form W-8ECI (or any successor forms thereto); or 

         (ii)  in
the case of a Lender that is an individual, (x) a complete and executed U.S. Internal Revenue Service Form W-8BEN (or any successor forms
thereto) and a certificate substantially in the form of Schedule 2.2.9 (a "Section 2.2.9 Certificate") or (y) a complete and
executed U.S. 

40

 

Internal
Revenue Service Form W-9 certifying that such Person is exempt from backup withholding (or any successor forms thereto); or 

        (iii)  in
the case of a Lender that is organized under the laws of the United States, any State thereof, or the District of Columbia, a complete and executed U.S. Internal
Revenue Service Form W-9 certifying that such Person is exempt from backup withholding (or any successor forms thereto), including all appropriate attachments; or 

        (iv)  in
the case of a Lender that (x) is not organized under the laws of the United States, any State thereof, or the District of Columbia and (y) is treated
as a corporation for U.S. federal income tax purposes, a complete and executed U.S. Internal Revenue Service Form W-8BEN (or any successor forms thereto) and a Section 2.2.9
Certificate; or 

         (v)  in
the case of a Lender that (A) is treated as a partnership or other non-corporate entity, and (B) is not organized under the laws of the
United States, any State thereof, or the District of Columbia, (x)(i) a complete and executed U.S. Internal Revenue Service Form W-8IMY (or any successor forms thereto) (including
all required documents and attachments) and (ii) a Section 2.2.9 Certificate, and (y) without duplication, with respect to each of its beneficial owners and the beneficial owners
of such beneficial owners looking through chains of owners to individuals or entities that are treated as corporations for U.S. federal income tax purposes (all such owners,
"beneficial owners"), the documents that would be required by clause (i), (ii), (iii), (iv), (vi), (vii) and/or this clause (v)
with respect to each such beneficial owner if such beneficial owner were Lender, provided, however, that
no such documents will be required with respect to a beneficial owner to the extent the actual Lender is determined to be in compliance with the requirements for certification on behalf of its
beneficial owner as may be provided in applicable U.S. Treasury regulations, or the requirements of this clause (v) are otherwise determined to be unnecessary, all such determinations under
this clause (v) to be made in the sole discretion of Borrower, provided, however, that Lender
shall be provided an opportunity to establish such compliance as reasonable; or 

        (vi)  in
the case of a Lender that is disregarded for U.S. federal income tax purposes, the document that would be required by clause (i), (ii), (iii), (iv), (v),
(vii) and/or this clause (vi) of this Section 2.2.9(e) with respect to its beneficial owner if such beneficial owner were the
Lender; or 

       (vii)  in
the case of a Lender that (A) is not a United States person and (B) is acting in the capacity as an "intermediary" (as defined in U.S. Treasury
Regulations), (x)(i) a U.S. Internal Revenue Service Form W-8IMY (or any successor form thereto) (including all required documents and attachments) and (ii) a
Section 2.2.9 Certificate, and (y) if the intermediary is a "non-qualified intermediary" (as defined in U.S. Treasury Regulations), from each person upon whose behalf the
"non-qualified intermediary" is acting the documents that would be required by clause (i), (ii), (iii), (iv), (v), (vi), and/or this clause (vii) with respect to each such
person if each such person were Lender. 

        If
the forms referred to in clause (i)(x) above in this Section 2.2.9(e) that are provided by a Lender at the time such
Lender first becomes a party to this Agreement or, with respect to a grant of a participation, the effective date thereof, indicate a United States interest withholding tax rate in excess of zero,
withholding tax at such rate shall be treated as General Taxes other than "Non-Excluded Taxes" ("Excluded Taxes") and shall not qualify as
Non-Excluded Taxes unless and until such Lender provides the appropriate form certifying that a lesser rate applies, whereupon withholding tax at such lesser rate shall be considered
Excluded Taxes solely for the periods governed by such form. If, however, on the date a Person becomes an assignee, successor or participant to this Agreement, Lender transferor was entitled to
indemnification or additional amounts under this Section 2.2.9, then the Lender assignee, successor or participant shall be entitled to
indemnification or additional amounts to 

41

 

the
extent (and only to the extent), that the Lender transferor was entitled to such indemnification or additional amounts for Non-Excluded Taxes, and the Lender assignee, successor or
participant shall be entitled to additional indemnification or additional amounts for any other or additional Non-Excluded Taxes. In addition, a Lender shall, subject to  Section 2.2.9(f), upon
written notice from Borrower promptly deliver such new forms as are required by the relevant Governmental Authority to
claim exemption from, or reduction in the rate of, U.S. federal withholding tax upon the obsolescence or invalidity of any form previously delivered by such Lender, but only if such Lender is legally
able to do so. 

        (f)    For
any period with respect to which a Lender has failed to provide Borrower with the appropriate form, certificate or other document described in subsection (e)
of this Section 2.2.9 (other than if such failure is due to a change in any requirement of law (including any applicable law, treaty,
governmental rule, regulation, guideline or order), or in the interpretation or application thereof, occurring after the date on which a form, certificate or other document originally was required to
be provided and it is legally inadvisable or otherwise commercially disadvantageous for such Lender to deliver such form, certificate or other document), such Lender shall not be entitled to
indemnification or additional amounts under subsection (a) or (c) of this Section 2.2.9 with respect to Non-Excluded
Taxes imposed by the United States by reason of such failure; provided, however, that should a Lender
become subject to Non-Excluded Taxes because of its failure to deliver a form, certificate or other document required hereunder, Borrower shall take such steps as such Lender shall
reasonably request, to assist such Lender in recovering such Non-Excluded Taxes. 

        (g)   If
a Lender receives a tax refund that is solely attributable to any Non-Excluded Taxes as to which such Lender has received additional amounts pursuant to  Section 2.2.9(a) or indemnification pursuant
to Section 2.2.9(c), such Lender will pay to
the Borrower the amount that, in such Lender's sole discretion, is solely attributable to such Non-Excluded Taxes, net of all out-of-pocket expenses of such Lender,
and without interest; provided that (i) such Borrower, upon the request of such Lender, as the case may be, agrees to repay the amount paid over to such Borrower (plus any penalties, interest
or other charges imposed by the relevant Governmental Authority) to such Lender in the event such Lender is required to repay such refund to such Governmental Authority and (ii) in no event is
any Lender required to arrange its Tax affairs to claim any refund. This paragraph shall not under any circumstances require such Lender to make available its tax returns (or any other information
relating to its Taxes that it deems confidential) to the Borrower or any other Person. Notwithstanding anything contained herein to the contrary, in no event will any Lender be required to pay any
amount to the Borrower the payment of which would place such Lender in a less favorable net after-Tax position than such Lender would have been in if the additional amounts or
indemnification giving rise to such refund of Taxes had never been paid and the refund never been received. 

        (h)   The
obligations of Borrower under this Section 2.2.9 shall survive the termination of this Agreement and the
payment of the Loan and all other amounts payable hereunder. 

        Section 2.3.    Loan Payment.    

        2.3.1.    Payments Generally.    (a) Borrower shall pay to
Lender (i) on the Closing Date, an amount equal to interest only on the outstanding principal balance of the Note from the Closing Date up to and including (A) the eighth day of the
calendar month in which the Closing Date occurs or (B) if the Closing Date occurs subsequent to the eighth day of the calendar month in which the Closing Date occurs, the eighth day of the
calendar month of the first month subsequent to the month in which the Closing Date occurs, and (ii) on February 9, 2008 and on each Payment Date thereafter up to and including the
Maturity Date, Borrower shall make a payment to Lender of interest accruing on the Note during the entire Interest Period ending on such Payment Date. 

        (b)   For
purposes of making payments hereunder, but not for purposes of calculating interest accrual periods, if the day on which such payment is due is not a Business Day,
then amounts due on 

42

 

such
date shall be due on the immediately preceding Business Day. All amounts due pursuant to this Agreement and the other Loan Documents shall be payable without setoff, counterclaim, defense or any
other deduction whatsoever. 

        2.3.2.    Payment on Maturity Date.    Borrower shall pay to Lender on
the Maturity Date the outstanding principal balance of the Loan, all accrued and unpaid interest and all other amounts due hereunder and under the Note, the Pledge Agreement and the other Loan
Documents, including all interest that
would accrue on the outstanding principal balance of the Loan through and including the end of the Interest Period in which the Maturity Date occurs (even if, in the event of an acceleration of the
Loan, such Interest Period extends beyond the Maturity Date). 

        2.3.3.    Late Payment Charge.    If any principal, interest or any
other sums due under the Loan Documents is not paid by Borrower by the date on which it is due, Borrower shall pay to Lender upon demand an amount equal to the lesser of three percent (3.0%) of such
unpaid sum or the maximum amount permitted by applicable law (such amount, the "Late Payment Charge") in order to defray the expense incurred by Lender
in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such delinquent payment. Any such Late Payment Charge shall be secured by the Pledge Agreement
and the other Loan Documents to the extent permitted by applicable law. 

        2.3.4.    Method and Place of Payment.    Except as otherwise
specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender not later than 2:00 p.m., New York City time, on the date when due and shall
be made in lawful money of the United States of America in immediately available funds at Lender's office or as otherwise directed by Lender, and any funds received by Lender after such time shall,
for all purposes hereof, be deemed to have been paid on the next succeeding Business Day. 

        Section 2.4.    Prepayments.    

        2.4.1.    Voluntary Prepayments.    The outstanding principal amount
of the Loan may be prepaid in whole or in part only as expressly provided herein, and may not otherwise be prepaid. On any date occurring after the Closing Date, upon not less than ten
(10) Business Days' prior notice to Lender, Borrower may prepay the Loan (a) in whole or (b) in part, solely with respect to this clause (b), pursuant to (i) a
Permitted Release in accordance with Section 2.6 hereof (but only to the extent that such prepayment (together with all prior prepayments made
pursuant to Permitted Releases, Affected Property Releases and Limited Cure Releases) does not exceed the Permitted Release Threshold), (ii) pursuant to a Limited Cure Release in accordance
with Section 8.1(c) hereof or (iii) pursuant to an Affected Property Release in accordance with  Section 6.4(d) of the Mortgage Loan
Agreement; provided that (A) no Event of Default shall
be continuing (other than the Event of Default which is to be cured pursuant to a Limited Cure Release); provided,  however, that solely in connection with
a prepayment in whole of the Loan, the absence of an Event of Default shall not be a precondition thereto so
long as such prepayment complies with all other applicable provisions hereof and (B) any prepayment in whole pursuant to clause (a) hereof or any prepayment pursuant to clause (b)
hereof pursuant to a Permitted Release or a Limited Cure Release which occurs prior to the Payment Date occurring in January, 2009 (the "Lockout Release
Date") shall include the Spread Maintenance Premium. If a prepayment under this Section 2.4.1(a) is made (I) on a
Payment Date, then Borrower shall pay to Lender, simultaneously with such prepayment, all interest on the principal balance of the Loan then being prepaid accrued through the end of the Interest
Period ending immediately prior to such Payment Date or (II) on a day other than a Payment Date, then Borrower shall pay to Lender, simultaneously with such prepayment, all interest on the
principal balance of the Loan then being prepaid which would have accrued through the end of the Interest Period then in effect, notwithstanding that such Interest Period extends beyond the date of
such prepayment. Additionally, in connection with any voluntary prepayment pursuant to this Section 2.4.1, the Mortgage Loan and each 

43

 

Other
Mezzanine Loan shall be simultaneously prepaid ratably, or if such prepayment is in connection with the release of a Release Property in accordance with  Section 2.6 hereof, in an amount equal to
the Mortgage Release Amount and the Other Mezzanine Release Amount applicable to such Release Property.
Borrower acknowledges and agrees that in connection with any prepayment under the Mortgage Loan or any Other Mezzanine Loan, the Loan shall be simultaneously prepaid as provided in the Mortgage Loan
Agreement or the applicable Other Mezzanine Loan Agreement. Borrower shall have the right, by notice to Lender, to revoke any notice of prepayment given pursuant to this  Section 2.4.1, provided that (i) such notice is given not later than the date that is one
(1) Business Day prior to the date originally designated as the date of prepayment and (ii) Borrower shall within ten (10) Business Days after demand pay to Lender all reasonable
costs and expenses incurred by Lender in connection with the proposed prepayment and/or the revocation thereof, including, without limitation, reasonable attorneys' fees and disbursements. 

        2.4.2.    Liquidation Events.    (a) Subject to the provisions
of Section 2.4.1 hereof, in the event of (i) any Casualty to all or any portion of the Properties, (ii) any Condemnation of all or
any portion of the Properties, (iii) a Transfer of all or any portion of the Properties or any of the Senior Mezzanine Collateral, (iv) any refinancing of the Properties or equity
interests in Mortgage Borrower and Maryland Owner or the Mortgage Loan or of any of the Senior Mezzanine Collateral or of any Senior Mezzanine Loan in accordance with the terms hereof, the Mortgage
Loan Agreement and the applicable Senior Mezzanine Loan Agreement, or (v) the receipt by Mortgage Borrower of any excess proceeds realized under its owner's title insurance policy after
application of such proceeds by Mortgage Borrower to cure any title defect (each, a "Liquidation Event"), Borrower shall authorize Lender to apply one
hundred percent (100%) of such Net Liquidation Proceeds After Debt Service to the outstanding principal balance of the Note, together with, in the event that such Net Liquidation Proceeds After
Debt Service are received on or before a Payment Date, interest that would have accrued on such prepaid amounts through and including the end of the Interest Period in which such Payment Date occurs.
Other than during the continuance of an Event of Default, no prepayment premium or fee shall be due in connection with any prepayment made pursuant to clauses (i) or (ii) of this  Section 2.4.2. The Allocated Loan Amount for the Individual Property with respect to which such Net Liquidation Proceeds After Debt Service were
paid shall be reduced in an amount equal to such prepayment. Notwithstanding anything to the contrary contained in this Section 2.4.2(a), Net
Liquidation Proceeds After Debt Service paid or received with respect to any of the events described in clauses (i), (ii) or (iv) above shall be the result of a ratable
application of the proceeds from any such Liquidation Event (net of all amounts permitted or required to be deducted therefrom in accordance with the definition of "Net Liquidation Proceeds After Debt
Service") to the Mortgage Loan and each Mezzanine Loan, while Net Liquidation Proceeds After Debt Service paid with respect to any Liquidation Event described in clause (iii) or (v) or
otherwise following a foreclosure sale or other disposition of the Property in connection with realization thereon following a Mortgage Loan Event of Default, shall be the result of the sequential
application of such proceeds (net of all amounts permitted or required to be deducted therefrom in accordance with the definition of "Net Liquidation Proceeds After Debt Service") to the Mortgage Loan
and each Mezzanine Loan. Any Net Liquidation Proceeds After Debt Service in excess of the Debt shall be paid as directed by Borrower. 

        (b)   Borrower
shall reasonably promptly notify Lender of any Liquidation Event once Borrower has knowledge of such event;  provided, however, that Borrower's obligation
to so notify Lender with respect to a Casualty shall only
be with respect to a Casualty, the Net Proceeds of which would reasonably be expected to exceed $500,000. Borrower shall be deemed to have knowledge of (i) a sale (other than a foreclosure
sale) of the Property or the Senior Mezzanine Collateral on the date on which a contract of sale for such sale is entered into, and a foreclosure sale, on the date notice of such foreclosure sale is
given, and (ii) a refinancing of the Property or the Mortgage Loan or of any Senior Mezzanine Collateral or any Senior Mezzanine Loan, on the date on which a commitment for such refinancing has
been entered into. The provisions of this Section 2.4.2 shall not be construed to 

44

 

contravene
in any manner the restrictions and other provisions (including, without limitation, any provision relating to the application of proceeds thereof) regarding refinancing of the Mortgage
Loan, any Senior Mezzanine Loan, Transfer of the Property or any Senior Mezzanine Collateral, substitution or release of any Individual Property or the application of Net Liquidation Proceeds After
Debt Service set forth in this Agreement, the other Loan Documents, the applicable Senior Mezzanine Loan Documents or the Mortgage Loan Documents. 

        2.4.3.    Prepayments After Event of Default.    If, on or prior to
the Lockout Release Date, payment of all or any part of the Debt is tendered by Borrower or otherwise recovered by Lender (including through application of any Reserve Funds) during the continuance of
an Event of Default, such tender or recovery shall (a) include interest accruing through and including the end of the Interest Period in which such payment occurs and (b) be deemed a
voluntary prepayment by Borrower in violation of the prohibition against prepayment set forth in Section 2.4.1 and Borrower shall pay, in
addition to the Debt, an amount equal to the Spread Maintenance Premium. 

        2.4.4.    Mandatory Prepayment.    On the first (1st)
Payment Date occurring after the fourth (4th) anniversary of the Closing Date (the "Mandatory Prepayment Date"), Borrower shall be
required to prepay in whole the Debt, unless Borrower shall have satisfied each of the following terms and conditions on or prior to the Mandatory Prepayment Date: 

        (a)   no
Event of Default shall be continuing on the Mandatory Prepayment Date; 

        (b)   if
the Interest Rate Cap Agreement is scheduled to mature on or prior to the Mandatory Prepayment Date, Borrower shall obtain and deliver to Lender not later than the
first day following the Mandatory Prepayment Date (provided that the form of such Replacement Interest Rate Cap shall have been delivered to Lender not
later than ten (10) Business Days prior to the first day following the Mandatory Prepayment Date), one or more Replacement Interest Rate Cap Agreements at the Strike Price from an Acceptable
Counterparty, which Replacement Interest Rate Cap Agreements shall be effective commencing on the first day following the Mandatory Prepayment Date and shall have a maturity date not earlier than the
Maturity Date; 

        (c)   the
Debt Service Coverage Ratio for the trailing twelve (12) full calendar months as of the date immediately preceding the Mandatory Prepayment Date shall not be
less than 1.45:1.00, provided that Borrower shall have the right on the Mandatory Prepayment Date to repay a portion of the Loan on a pro rata basis
with the Mortgage Loan and each Other Mezzanine Loan based on the respective original principal amounts of the Loan, the Mortgage Loan and each Other Mezzanine Loan in an amount necessary to cause the
foregoing Debt Service Coverage Ratio requirement to be satisfied; 

        (d)   Borrower
shall have delivered to Lender as of the Mandatory Prepayment Date an Officer's Certificate in form reasonably acceptable to Lender certifying that each of the
representations and warranties of Borrower contained in the Loan Documents is true, complete and correct in all material respects as of the date of such Officer's Certificate to the extent such
representations and warranties are not matters which by their nature can no longer be true and correct as a result of the passage of time or are no longer true and correct as a result of factual
circumstances or events that have occurred subsequently, provided such circumstances and events that have occurred subsequently do not constitute a
Default or an Event of Default that is continuing; 

        (e)   (i)
Each of Mortgage Borrower and Maryland Owner, First Mezzanine Borrower, Second Mezzanine Borrower and Third Mezzanine Borrower shall have contemporaneously extended
the term of the Mortgage Loan, the First Mezzanine Loan, the Second Mezzanine Loan and the Third Mezzanine Loan, respectively, and (ii) each of the Fourth Mezzanine Borrower, the Fifth
Mezzanine Borrower and the Sixth Mezzanine Borrower shall have satisfied the conditions set forth in Section 2.4.4 of the Fourth Mezzanine Loan Agreement, the Fifth Mezzanine Loan Agreement and
the Sixth Mezzanine Loan Agreement, respectively, such that they are not required to repay their respective Mezzanine Loan; and 

45

 

  
        (f)    Borrower shall have paid to Lender all reasonable costs incurred by Lender in connection with the requirements set forth in this  Section 2.4.4 (including reasonable attorneys' fees) excluding any Spread Maintenance Premium, prepayment penalty or breakage fees which might
otherwise be due. 

        Section 2.5.    Substitution of Properties.    Borrower may cause
Mortgage Borrower and Maryland Owner to obtain the release of one or more Individual Properties from the Lien of the Mortgage thereon and the release of Mortgage Borrower's and/or Maryland Owner's
obligations under the Mortgage Loan Documents with respect to such Individual Property (other than those expressly stated to survive) (each such Individual Property, a
"Substituted Property"), by substituting therefor one or more properties (such properties, individually and collectively as the context requires,
"Substitute Property"), upon the satisfaction of each of the following conditions: 

        (a)   After
giving effect to the proposed substitution, no Event of Default shall be continuing; 

        (b)   Lender
shall have received at least thirty (30) days' prior notice requesting the substitution and identifying the Substitute Property and the Substituted
Property; 

        (c)   All
conditions to the substitution set forth in Section 2.5 of the Mortgage Loan Agreement and each Senior Mezzanine Loan Agreement shall have been satisfied and
Lender shall have received evidence that all such conditions shall have been satisfied; provided that such evidence shall in all cases consist of the
identical evidence or documentation provided to Mortgage Lender and each Senior Mezzanine Lender in satisfaction of such conditions; 

        (d)   Lender
shall have received an Officer's Certificate stating that (i) no Event of Default shall have occurred and be continuing, (ii) each of the
representations and warranties contained in this Agreement and the other Loan Documents shall be true and correct in all material respects with respect to the Substitute Property Borrower and the
Substitute Property as of the applicable Substitution Effective Date (on a pro forma basis giving effect to the proposed substitution) and (iii) that all of the conditions of this  Section 2.5
shall have been satisfied or waived; 

        (e)   Lender
shall have received such certified organizational documents, good standing certificates, qualifications to do business, resolutions and consents for the
Substitute Property Borrower and the Substitute Property Operator in connection with the substitution as are requested by Mortgage Lender pursuant to Section 2.5(o) of the Mortgage Loan
Agreement; 

        (f)    Lender
shall have received such lien, credit, bankruptcy, litigation and judgment searches with respect to the Substitute Property, the Substitute Property Borrower, the
Substitute Property Operator, any former owner and/or operator of the Substitute Property and any direct or indirect owner thereof as are provided to Mortgage Lender pursuant to Section 2.5(w)
of the Mortgage Loan Agreement; 

        (g)   Lender
shall have received a mezzanine loan or similar endorsement (to the extent available, and if not available, a form of "comfort letter" in substantially the form
delivered at closing, if available) to each owner's Title Insurance Policy insuring such Substitute Property as of the Substitution Effective Date. Lender also shall have received copies of paid
receipts or a closing statement showing that all premiums in respect of such endorsements and Title Insurance Policies have been paid or will be paid at closing of the purchase of the Substitute
Property; 

        (h)   Lender
shall have received from Borrower a copy of each document, agreement, financial statement, amendment, instrument, report, appraisal, opinion, survey, study or
other communication delivered by Mortgage Borrower to Mortgage Lender in connection with such Substitution pursuant to Section 2.5 of the Mortgage Loan Agreement; 

        (i)    Intentionally
omitted; 

        (j)    Lender
shall have received the following opinions of Borrower's counsel: (i) copies of First Mezzanine Borrower's counsel's opinion as to the perfection and
enforceability of the pledge of the 

46

 

ownership
interests in the Substitute Property Borrower, (ii) copies of an opinion or opinions of counsel admitted in New York and Delaware opining as to such matters with respect to the
Substitute Property Borrower and the documents and instruments delivered with respect to the substitution and with such qualifications and assumptions as the opinions with respect to the Property
delivered at the closing of the Mortgage Loan, which opinions and the counsel issuing the same would be acceptable to a prudent lender originating commercial mortgage loans for securitization similar
to the Mortgage Loan, (iii) copies of so-called "Special Delaware" opinions with respect to the Substitute Property Borrower and the Substitute Property Operator issued by counsel
admitted to practice in Delaware and with such qualifications and assumptions as the "Special Delaware" opinions with respect to Mortgage Borrower, Maryland Owner and Operator delivered at the closing
of the Mortgage Loan, which opinions and counsel issuing the same shall otherwise be acceptable to the Rating Agencies, (iv) copies of an opinion of counsel with respect to such health care
regulatory matters as are required by the Rating Agencies with respect to the Mortgage Loan, (v) copies of an opinion of counsel which would be acceptable to a prudent lender originating
commercial mortgage loans for securitizations similar to the Mortgage Loan, and if after a Securitization of the Mortgage Loan, acceptable to the Rating Agencies, opining that subjecting the
Substitute Property to the Lien of the related Substitute Property Lien Documents and the execution and delivery of the related Loan Documents does not and will not affect or impair the ability of
Mortgage Lender to enforce its remedies under all of the Mortgage Loan Documents or to realize the benefits of the cross-collateralization provided for thereunder, (vi) if required by the
Rating Agencies under the Mortgage Loan, an Additional True-Lease Opinion of counsel acceptable to the Rating Agencies under the Mortgage Loan, (vii) copies of an opinion of counsel
acceptable to the Rating Agencies under the Mortgage Loan that the substitution does not constitute a "significant modification" of the Mortgage Loan under Section 1001 of the Code or otherwise
cause a tax to be imposed on a "prohibited transaction" by any REMIC Trust and (viii) an update of the Insolvency Opinion indicating that the substitution does not affect the opinions set forth
therein (it being agreed that any opinions contemplated by this paragraph which cover the same matters as opinions delivered on the Closing Date shall be of similar form and substance as those
delivered on the Closing Date); 

        (k)   Lender
shall have received with respect to the Substitute Property Borrower and the Substitute Property, as applicable, (i) annual operating statements for the
three (3) years immediately prior to the Substitution Effective Date, (ii) financial statements for the most current completed Fiscal Year in accordance with the requirements of  Section 5.1.11 hereof, (iii) a current operating statement and (iv) an Officer's Certificate certifying that each of the foregoing
presents fairly the financial condition and the results of operations of the Substitute Property Borrower and the Substitute Property and that there has been no material adverse change in the
financial condition of the Substitute Property; 

        (l)    Following
the substitution of a Substituted Property in exchange for a Substitute Property in accordance with this  Section 2.5, Lender shall adjust (if applicable) the amounts thereafter required to be
deposited by Borrower into the Reserve Funds to reflect
amounts required solely for the remaining Individual Properties and the Substitute Property after giving effect to such substitution, unless such deposits have been made by Mortgage Borrower and
Maryland Owner or any Senior Mezzanine Borrower pursuant to the Mortgage Loan Documents or the applicable Senior Mezzanine Loan Documents, in which case the making of such deposits shall be waived
hereunder; 

        (m)  Borrower
shall have caused to be paid or reimbursed Lender for all costs and expenses incurred by Lender (including, without limitation, reasonable attorneys fees and
disbursements) in connection with the release and substitution and Borrower shall have caused to be paid all recording charges, filing fees, taxes or other expenses (including, without limitation,
mortgage and intangibles taxes and documentary stamp taxes) payable in connection with the substitution. Borrower shall have 

47

 

caused
to be paid all costs and expenses and fees of the Rating Agencies incurred by Mortgage Borrower and Maryland Owner in connection with the substitution; and 

        (n)   such
substitution shall not result in any breach of or noncompliance with any applicable REIT Representations and Covenants. 

        Upon
satisfaction or waiver of the foregoing conditions precedent, the Allocated Loan Amount of the Substitute Property shall be equal to the Allocated Loan Amount of the Substituted
Property (and, if there is more than one Substitute Property, the Allocated Loan Amount of the Substituted Property shall be allocable to each such Substitute Property on a pro rata basis according to
the Appraised Value thereof) (such date, the "Substitution Effective Date"). 

        Section 2.6.    Release of Collateral.    No repayment or prepayment
of all or any portion of the Note (other than repayment in full of the Debt in accordance with the terms hereof) shall cause, give rise to a right to require, or otherwise result in, the release of
any Lien of the Pledge Agreement in the Collateral, or any portion thereof. 

        2.6.1.    Release of Individual Property.    After the Closing Date,
Borrower may cause or permit Mortgage Borrower and Maryland Owner to obtain the release of an Individual Property from the Lien of the Mortgage thereon (each such Individual Property, a
"Release Property") and the release of Mortgage Borrower's obligations under the Mortgage Loan Documents (and, if applicable, the release of the
Maryland Owner from the Indemnity Guaranty) with respect to such Release Property, upon the satisfaction of each of the following conditions: 

        (a)   Such
release is either (i) a Permitted Release, (ii) a Limited Cure Release effectuated in accordance with  Section 8.1(c) hereof, (iii) an Affected Property Release effectuated in
accordance with  Section 6.4(d) of the Mortgage Loan Agreement or (iv) an Unlicensed Facility Release in accordance with  Section 5.1.28
hereof; 

        (b)   After
giving effect to the proposed release, no Event of Default shall be continuing; 

        (c)   (i)
In the case of a Limited Cure Release, Borrower shall have paid to Lender the applicable Limited Cure Release Amount and the Spread Maintenance Premium, if
applicable; provided, however, that such Limited Cure Release, when aggregated with all prior Permitted
Releases, Limited Cure Releases, Unlicensed Facility Releases and Affected Property Releases and all concurrent Permitted Releases, Limited Cure Releases, Unlicensed Facility Releases and Affected
Property Releases shall not exceed the Permitted Release Threshold; and (ii) in the case of an Unlicensed Facility Release, Borrower shall have paid to Lender the applicable Unlicensed Facility
Release Amount; provided, however, that such Unlicensed Facility Release, when aggregated with all prior
Permitted Releases, Limited Cure Releases, Unlicensed Facility Releases and Affected Property Releases and all concurrent Permitted Releases, Limited Cure Releases, Unlicensed Facility Releases and
Affected Property Releases, shall not exceed the Permitted Release Threshold; 

        (d)   In
the case of an Affected Property Release, Borrower shall have paid to Lender the applicable Affected Property Release Amount;  provided, that Borrower shall receive a credit against such Affected
Property Release Amount in the amount of the Net Liquidation Proceeds After Debt
Service held by Lender corresponding to the Individual Property to which such Affected Property Release relates; 

        (e)   In
the case of a Permitted Release, Borrower shall have paid to Lender (i) the applicable Permitted Release Amount and (ii) the Spread Maintenance Premium,
if applicable; provided, that such Permitted Release, when aggregated with all prior Permitted Releases, Limited Cure Releases, Unlicensed Facility
Releases and Affected Property Releases and all concurrent Permitted Releases, Limited Cure Releases, Unlicensed Facility Releases and Affected Property Releases, shall not exceed 

48

 

the
Permitted Release Threshold (the Release Amounts paid by Borrower pursuant to subsections (c), and  (d) above and this subsection (e) are collectively the "Loan Release
Payments"); 

        (f)    Intentionally
omitted; 

        (g)   Either
(i) the Release Property shall be conveyed or (ii) the ownership interests in the Mortgage Borrower or Maryland Owner owning such Release Property
shall be Transferred (but not Pledged), in either case, to a Person other than a Borrower, Mortgage Borrower, Maryland Owner, an Other Mezzanine Borrower, Master Tenant or an Operator; 

        (h)   The
Release Amount paid to Lender in connection with any such release shall be applied to reduce the Allocated Loan Amount of the Release Property to zero, but shall not
be applied to reduce the Allocated Loan Amounts of any Individual Properties remaining subject to the Lien of a Mortgage immediately following such release; 

        (i)    Concurrently
with the payment of the Loan Release Payments, Mortgage Borrower shall make a partial prepayment of the Mortgage Loan equal to the Mortgage Release Amount
applicable to such Release Property and each Other Mezzanine Borrower shall make a partial prepayment of its respective Other Mezzanine Loan equal to the Other Mezzanine Release Amount applicable to
such Release Property, together in each case with any related interest, costs and expenses and all other amounts payable under the Mortgage Loan Documents or related Other Mezzanine Loan Documents in
connection with such prepayment, including, to the extent such prepayment is made on a date other than a Payment Date, interest which would have accrued on the outstanding principal balance of the
Mortgage Loan or such Mezzanine Loan to the next Payment Date; 

        (j)    (i)
Mortgage Borrower and Maryland Owner shall have satisfied all of the terms and conditions contained in Section 2.6.1 and 2.6.2 of the Mortgage Loan Agreement
required for the release of any such Individual Property and (ii) each Senior Mezzanine Borrower shall have satisfied all of the terms and conditions contained in Section 2.6.1 and 2.6.2
of the applicable Senior Mezzanine Loan Agreement required for the release of any such Individual Property. 

        (k)   Borrower
shall have caused to be paid or reimbursed Lender for all reasonable out-of-pocket costs and expenses incurred by Lender (including,
without limitation, reasonable attorneys' fees and disbursements) in connection with any release effectuated pursuant to this Section 2.6.1, and
Borrower shall have caused to be paid all reasonable third-party costs and expenses incurred in connection with any such release, including but not limited to, any charges incurred in connection with
the release of any Liens. 

        (l)    such
release shall not result in any breach of or noncompliance with any applicable REIT Representations and Covenants. 

        2.6.2.    Release on Payment.    Lender shall, upon the written
request and at the sole cost and expense (including reasonable attorneys' fees and disbursements) of Borrower, upon payment in full of all principal and interest due on the Loan and all other amounts
due and payable under the Loan Documents in accordance with the terms and provisions of the Note and this Agreement, release the Lien of the Pledge Agreement on the Collateral. Upon request of
Borrower and at Borrower's sole cost and expense (including reasonable attorneys' fees and disbursements), Lender agrees to cooperate to provide assignments without representation or warranty and
without recourse in lieu of the aforementioned releases. 

        2.6.3.    Release of Reserve Funds.    In connection with a release of
a Release Property pursuant to this Section 2.6, Lender will cause a portion of the Reserve Funds (other than Low DSCR Reserve Funds) or a
reduction to any Letters of Credit delivered to Lender in lieu of such Reserve Funds in accordance with Section 7.6 hereof by an amount, as
determined by Lender in its reasonable discretion, equal to the undisbursed portion thereof allocable to such Release Property. Following the release of a 

49

 

Release
Property in accordance with Section 2.6.1, Lender shall adjust (if applicable) the amounts thereafter required to be deposited by
Borrower into the Reserve Funds (other than the Low DSCR Reserve Funds) to reflect amounts required solely for the remaining Individual Properties after giving effect to such release. 

        Section 2.7.    Cash Management.    

        2.7.1.    Operator Accounts; Rent
Instruction.    (a)    Borrower shall cause Mortgage Borrower and Maryland Owner to establish and maintain a segregated Eligible Account for the purpose of
depositing all payments of Rents payable pursuant to the Master Lease, which Eligible Account shall be in the name of Borrower Agent under the Mortgage Loan Agreement. 

        (b)   Borrower
hereby represents and warrants that the Rent Instruction directs Master Tenant to deposit all Rents payable under the Master Lease directly into the Mortgage
Cash Management Account. 

        (c)   Borrower
hereby covenants and agrees to cause Mortgage Borrower and Maryland Owner to deposit directly into the Mortgage Cash Management Account any payments of Rents in
respect of the Master Lease received by Mortgage Borrower, notwithstanding Subsection (b) above, within one (1) Business Day of
receipt. 

        2.7.2.    Mortgage Cash Management
Account.    (a)    Borrower shall cause Mortgage Borrower and Maryland Owner to establish and maintain the Mortgage Cash Management Account and the Mortgage
Sub-accounts with Mortgage Lender in accordance with Section 2.7.3 of the Mortgage Loan Agreement for the benefit of Mortgage Lender, each of which Accounts shall be under the sole
dominion and control of Mortgage Lender. Borrower shall not cause or permit Mortgage Borrower in any way to alter or modify the Mortgage Cash Management Account and will notify Lender of the account
number thereof. Borrower shall direct or cause Mortgage Borrower and Maryland Owner to direct that all cash distributions from the Mortgage Cash Management Account to be paid to Mortgage Borrower in
accordance with the Mortgage Cash Management Agreement (including the Net Liquidation Proceeds After Debt Service) be deposited into the First Mezzanine Deposit Account maintained in accordance with
the Cash Management Agreement. 

        (b)   All
funds on deposit in the Accounts during the continuance of an Event of Default may be applied by Lender in such order and priority as Lender shall determine. 

        2.7.3.    Senior Mezzanine Cash Management
Account.    (a)    Borrower shall cause Senior Mezzanine Borrower to establish and maintain Senior Cash Management Accounts and the sub-accounts
established thereunder as Eligible Accounts in accordance with Section 2.7.3 of the applicable Senior Mezzanine Loan Agreement for the benefit of the applicable Senior Mezzanine Lender, each of
which Accounts shall be under the sole dominion and control of the applicable Senior Mezzanine Lender. Borrower shall not cause or permit Senior Mezzanine Borrower in any way to materially alter or
modify the applicable Senior Mezzanine Deposit Account and will notify Lender of the account number thereof. Borrower shall direct or cause Senior Mezzanine Borrower to direct that all cash
distributions from the applicable Senior Mezzanine Deposit Account be paid in accordance with the applicable Senior Mezzanine Deposit Agreement (including the Net Liquidation Proceeds After Debt
Service) to the Seventh Mezzanine Deposit Account. 

        (b)   The
insufficiency of funds on deposit in the Senior Mezzanine Deposit Account shall not relieve Borrower from the obligation to make any payments, as and when due,
pursuant to this Agreement and the other Loan Documents, and such obligations shall be separate and independent, and not conditioned on any event or circumstance whatsoever 

        2.7.4.    Debt Service
Account.    (a)    During the term of the Loan, Borrower shall establish and maintain a segregated Eligible
Account (the "Seventh Mezzanine Deposit Account") for the benefit of 

50

 

Lender,
which Seventh Mezzanine Deposit Account shall be under the sole dominion and control of Lender. The Seventh Mezzanine Deposit Account shall be entitled "HCR VII Properties, LLC,
for the benefit of JPMorgan Chase Bank, N.A., as Lender, pursuant to Loan Agreement (Seventh Mezzanine Loan) dated as of December 21, 2007—Seventh Mezzanine Deposit Account". 

        (b)   All
funds on deposit in the Accounts shall be applied as provided in Section 3(c) of the Cash Management Agreement. 

        (c)   The
insufficiency of funds on deposit in the Seventh Mezzanine Deposit Account shall not relieve Borrower from the obligation to make any payments, as and when due
pursuant to this Agreement and the other Loan Documents, and such obligations shall be separate and independent, and not conditioned on any event or circumstance whatsoever. 

        (d)   Borrower
hereby grants to Lender a first priority security interest in the Seventh Mezzanine Deposit Account and the Seventh Mezzanine Sub-accounts and all
deposits at any time contained therein and the proceeds thereof and will take all actions necessary to maintain in favor of Lender a perfected first priority security interest in such Accounts,
including, without limitation, executing and filing UCC-1 Financing Statements and continuations thereof. Borrower will not in any way alter or modify the Seventh Mezzanine Deposit Account
or the Seventh Mezzanine Sub-accounts. Lender shall have the sole right to make withdrawals from the Accounts and all costs and expenses for establishing and maintaining the Accounts shall
be paid by Borrower. 

        2.7.5.    Payments Received Under the Cash Management
Agreement.    Notwithstanding anything to the contrary contained in this Agreement and the other Loan Documents, and provided no Event of Default has occurred and is
continuing, Borrower's obligations with respect to the payment of the monthly Debt Service and amounts due for the Reserve Funds and any other payment reserves established pursuant to this Agreement
or any other Loan Document shall be deemed satisfied to the extent sufficient amounts are deposited in the Seventh Mezzanine Deposit Account established pursuant to the Cash Management Agreement to
satisfy such obligations on the dates each such payment is required, regardless of whether any of such amounts are so applied by Lender. 

        III.    INTENTIONALLY OMITTED    

        IV.    REPRESENTATIONS AND WARRANTIES    

        Section 4.1.    Borrower Representations.    Borrower represents and
warrants as of the Closing Date that: 

        4.1.1.    Organization.    Borrower has been duly organized and is
validly existing and in good standing with requisite power and authority to own its property and assets and to transact the businesses in which it is now engaged. Borrower is duly qualified to do
business and is in good standing in each jurisdiction where it is required to be so qualified in connection with its properties, businesses and operations, except where the failure to be so qualified
would not reasonably be expected to have, or does have, a Material Adverse Effect. Borrower possesses all rights, licenses, permits and authorizations, governmental or otherwise, necessary to entitle
it to own its property and assets and to transact the businesses in which it is now engaged, and the sole business of Borrower is the ownership and management of the Collateral. The ownership
interests of Borrower as of the Closing Date are as set forth on the organizational chart attached hereto as Schedule 4.1.1. 

        4.1.2.    Proceedings.    Borrower has taken all necessary action to
authorize the execution, delivery and performance of this Agreement and the other Loan Documents. This Agreement and such other Loan Documents have been duly executed and delivered by or on behalf of
Borrower and constitute legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms, subject only to applicable bankruptcy, insolvency and
similar laws affecting rights of 

51

 

creditors
generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 

        4.1.3.    No Conflicts.    The execution, delivery and performance of
this Agreement and the other Loan Documents by Borrower (to which it is a party) will not (a) conflict with, or result in a breach of any of the terms or provisions of or constitute a default
under, or result in the creation or imposition of any lien, charge or encumbrance (other than pursuant to the Loan Documents) upon any of the property or assets of Borrower pursuant to the terms of
any indenture, mortgage, deed of trust, loan agreement, partnership agreement, management agreement or other agreement or instrument to which Borrower is a party or by which any of Borrower's property
or assets is subject, except in each case as would not reasonably be expected to have, and does not have, a Material Adverse Effect, nor (b) will such action result in any violation of the
provisions of any statute or any order, rule or regulation of any Governmental Authority or Health Care Authority having jurisdiction over Borrower or any of Borrower's properties or assets, and any
material consent, approval, authorization, order, registration or qualification of or with any such Governmental Authority or Health Care Authority required for the execution, delivery and performance
by Borrower of this Agreement or any other Loan Documents has been obtained and is in full force and effect. 

        4.1.4.    Litigation.    Except as specified on  Schedule 4.1.4, there are no actions,
suits or proceedings at law or in equity by or before any Governmental Authority or Health Care Authority
or other agency now pending or to Borrower's knowledge threatened in writing against or affecting Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Principal, Master Tenant, any
Operator, Guarantor, the Collateral, any Senior Mezzanine Collateral or any Individual Property, which actions, suits or proceedings, if determined against Borrower, Senior Mezzanine Borrower,
Mortgage Borrower, Maryland Owner, Principal, Master Tenant, any Operator, Guarantor, the Collateral, any Senior Mezzanine Collateral or any Individual Property, would reasonably be expected to have,
and do not have, a Material Adverse Effect. 

        4.1.5.    Agreements.    Borrower is not a party to any agreement or
instrument or subject to any restriction which would reasonably be expected to have, or does have, a Material Adverse Effect. None of Mortgage Borrower, Maryland Owner or Borrower is in default in any
material respect in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any material agreement or instrument to which it is a party or by which
Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner, the Collateral, any Senior Mezzanine Collateral or any Individual Property is bound, except in each case as would not
reasonably be expected to have, and does not have, a Material Adverse Effect. None of Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner has any material financial obligation
under any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which it is a party or by which
Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, the Collateral, any Senior Mezzanine Collateral or the Properties, are otherwise bound, other than (a) obligations
incurred in the ordinary course of the operation of the Collateral, any Senior Mezzanine Collateral or the Properties as permitted pursuant to  clause (s) of the definition of "Special Purpose
Entity (Borrower)" set forth in  Section 1.1 hereof and (b) obligations under the Loan Documents and the Mortgage Loan Documents. 

        4.1.6.    Title.    Borrower is the record and beneficial owner of,
and has good and marketable title to the Collateral, free and clear of any Liens whatsoever except the Liens created pursuant to the Loan Documents in favor of Lender. The Pledge Agreement, together
with the delivery of the Collateral and any Uniform Commercial Code financing statements required to be filed in connection therewith, will create a valid first priority Lien on the Collateral, all in
accordance with the terms thereof. Borrower's delivery of the certificates evidencing the Pledged Securities (as such term is defined in the Pledge Agreement), as set forth in Section 12 of the
Pledge Agreement, to Lender, and Lender's continued 

52

 

possession
thereof, shall create in favor of the Lender a valid perfected first priority security interest in the Pledged Securities and the proceeds thereof. 

        4.1.7.    Solvency.    Borrower has (a) not entered into the
Loan or executed the Note, this Agreement or any other Loan Documents with the actual intent to hinder, delay or defraud any creditor and (b) received reasonably equivalent value in exchange
for its obligations under such Loan Documents. The fair saleable value of Borrower's assets exceeds and will, immediately following the making of the Loan, exceed Borrower's total liabilities,
including subordinated, unliquidated, disputed and contingent liabilities. The fair saleable value of Borrower's assets is and will, immediately following the making of the Loan, be greater than
Borrower's probable liabilities, including the maximum amount of its contingent liabilities on its debts as such debts become absolute and matured. Borrower's assets do not and, immediately following
the making of the Loan will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Borrower does not intend to, nor believes that it will,
incur debt and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such debt and liabilities as they mature (taking into account the timing and amounts of
cash to be received by Borrower and the amounts to be payable on or in respect of obligations of Borrower). No petition in bankruptcy has been filed against any of Borrower, Senior Mezzanine Borrower,
Mortgage Borrower or Maryland Owner or any constituent Person, and none of Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner nor any constituent Person has ever made an
assignment for the benefit of creditors or taken advantage of any insolvency act for the benefit of debtors. None of Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner or any of
its respective constituent Persons is contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of
Borrower's, Senior Mezzanine Borrower's, Mortgage Borrower's or Maryland Owner's assets or properties, and none of Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner has any
knowledge of any Person contemplating the filing of any such petition against it or such constituent Persons. 

        4.1.8.    Full and Accurate Disclosure.    No statement of fact made
by Borrower in this Agreement or in any of the other Loan Documents when taken as a whole contains any untrue statement of a material fact
or omits to state any material fact necessary to make statements contained herein or therein not misleading in any material respect. There is no material fact presently known to Borrower, Senior
Mezzanine Borrower, Mortgage Borrower or Maryland Owner which has not been disclosed to Lender which would reasonably be expected to have, or does have, a Material Adverse Effect. 

        4.1.9.    No Plan Assets.    Borrower does not sponsor, nor is it
obligated to contribute to, or is itself an "employee benefit plan," as defined in Section 3(3) of ERISA, subject to Title I of ERISA or Section 4975 of the Code, and none of the assets
of Borrower constitutes or will constitute "plan assets" of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101 as amended by Section 3(42) of
ERISA. In addition, (a) Borrower is not a "governmental plan" within the meaning of Section 3(32) of ERISA and (b) transactions by or with Borrower are not subject to any state or
other statute, regulation or other restriction regulating investments of, or fiduciary obligations with respect to, governmental plans within the meaning of Section 3(32) of ERISA which is
similar to the provisions of Section 406 of ERISA or Section 4975 of the Code and which prohibit or otherwise restrict the transactions contemplated by this Agreement, including but not
limited to, the exercise by Lender of any of its rights under the Loan Documents. 

        4.1.10.    Compliance.    Except as may be specified in the Title
Insurance Policies, the Surveys, the Physical Condition Reports, letters from the applicable municipality or other Governmental Authority or Health Care Authority, third party zoning reports or
environmental reports and as would not reasonably be expected to have, and does not have, a Material Adverse Effect, (i) Borrower, Mortgage Borrower, Maryland Owner, the Collateral, the Senior
Mezzanine Collateral and the Properties (including the use thereof) comply in all respects with all applicable Legal Requirements and Health 

53

 

Care
Requirements, including building and zoning ordinances and codes and (ii) none of Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Master Tenant or Operator is in
default or violation of any order, writ, injunction, decree or demand of any Governmental Authority or Health Care Authority. Each of Borrower, Senior Mezzanine Borrower, Mortgage Borrower and
Maryland Owner is in compliance with Prescribed Laws. Notwithstanding the foregoing, Borrower hereby makes no representation set forth in the immediately preceding sentence with respect to
(i) any Person owning a direct or indirect interest in Borrower which is publicly traded stock and (ii) any Person holding an interest in Carlyle or any Affiliate of Carlyle (whether
directly or indirectly) which can be transferred without notification to or consent of Carlyle or any of its Affiliates which it directly or indirectly controls and of which Carlyle or any of its
Affiliates which it directly or indirectly controls does not have knowledge. There has not been committed by Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Master Tenant or
Operator, any act or omission affording the federal government or any other Governmental Authority or Health Care Authority the right of forfeiture as against any Individual Property or any part
thereof or any monies paid in performance of Borrower's, Senior Mezzanine Borrower's, Mortgage Borrower's or Maryland Owner's obligations under any of the Loan Documents and, to Borrower's, Senior
Mezzanine Borrower's, Mortgage Borrower's and Maryland Owner's knowledge, there has not been committed by any other Person in occupancy of or involved with the operation or use of the Properties, any
act or omission which would be reasonably likely to afford the federal government or any other Governmental Authority or Health Care Authority any such right of forfeiture. For purposes of the  Section 4.1.10 only, Borrower's, Senior Mezzanine Borrower's, Mortgage Borrower's and Maryland Owner's knowledge shall be limited to the actual
knowledge of the Chief Executive Officer, Chief Financial Officer and Chief Legal Officer of Manor Care. 

        4.1.11.    Financial Information.    To Borrower's knowledge, all
financial data, including the statements of cash flow and income and operating expense, that have been delivered to Lender by or on behalf of, and at the direction of, Borrower and its Affiliates in
connection with the Loan (a) are true and correct in all material respects, (b) accurately represent the financial condition or results of operation of the Collateral, the Senior
Mezzanine Collateral and the Properties as of the date of such reports, and (c) to the extent prepared or audited by an independent certified public accounting firm, have been prepared in
accordance with GAAP throughout the periods covered, except as disclosed therein. 

        4.1.12.    Condemnation.    No Condemnation or other similar
proceeding has been commenced or, to Borrower's knowledge, is threatened in writing with respect to all or any material portion of any Individual Property. 

        4.1.13.    Federal Reserve Regulations.    No part of the proceeds of
the Loan will be used for the purpose of purchasing or acquiring any "margin stock" within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other
purpose which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors, or for any purposes prohibited by Legal Requirements or by the terms and
conditions of this Agreement or the other Loan Documents. 

        4.1.14.    Mortgage Loan Representations.    All of the
representations and warranties contained in the Mortgage Loan Documents are hereby incorporated into this Agreement and deemed made hereunder by Borrower and, as the context may require, on behalf of
Mortgage Borrower and Maryland Owner, as and when made thereunder and shall remain incorporated without regard to any waiver, amendment or other modification thereof by the Mortgage Lender or to
whether the related Mortgage Loan Document has been terminated, unless otherwise consented to in writing by Lender. 

        4.1.15.    Not a Foreign Person.    Borrower is not a "foreign person"
within the meaning of §1445(f)(3) of the Code. 

54

 

        4.1.16.    Senior Mezzanine Loan Representations.    All of the
representations and warranties contained in the Senior Mezzanine Loan Documents are hereby incorporated into this Agreement and deemed made hereunder by Borrower and, as the context may require, on
behalf of each Senior Mezzanine Borrower, as and when made thereunder and shall remain incorporated without regard to any waiver, amendment or other modification thereof by the Senior Mezzanine Lender
or to whether the related Senior Mezzanine Loan Document has been repaid or otherwise terminated, unless otherwise consented to in writing by Lender. 

        4.1.17.    Intentionally Omitted.    

        4.1.18.    Enforceability.    The Loan Documents are not subject to
any right of rescission, set-off, counterclaim or defense by Borrower, Principal or Guarantor, including the defense of usury, nor would the operation of any of the terms of the Loan
Documents, or the exercise of any right thereunder, render the Loan Documents unenforceable (subject to principles of equity and bankruptcy, insolvency and other laws generally affecting creditors'
rights and the enforcement of debtors' obligations), and Borrower, Principal and Guarantor have not asserted any right of rescission, set-off, counterclaim or defense with respect thereto. 

        4.1.19.    No Prior Assignment.    There are no prior assignments
other than pursuant to the Loan Documents or the Mortgage Loan Documents of (a) the Master Lease or (b) the Operating Lease or any portion of the Rents due and payable or to become due
and payable which are presently outstanding. There are no prior assignments of the Collateral which are presently outstanding except in accordance with the Loan Documents or the Mortgage Loan
Documents. 

        4.1.20.    Insurance.    Borrower has obtained and has delivered to
Lender certified copies of the Policies reflecting the insurance coverages, amounts and other requirements set forth in the Mortgage Loan Agreement. To Borrower's knowledge, no claims have been made
or are currently pending, outstanding or otherwise remain unsatisfied under any such Policy except as set forth on Schedule 4.1.20 or as would
not reasonably be expected to have, and does not have, a Material Adverse Effect, and neither Borrower nor any other Person, has done, by act or omission, anything which would impair the coverage of
any such Policy. 

        4.1.21.    Use of Properties.    Each Individual Property is used as a
skilled nursing facility or as an assisted living facility (as set forth on Schedule I) and other appurtenant and related uses. 

        4.1.22.    Intentionally Omitted.    

        4.1.23.    No Contractual Obligations.    Other than as provided in or
contemplated by the Loan Documents: (x) as of the date of this Agreement, Borrower is not subject to any Contractual Obligations and has not entered into any agreement, instrument or
undertaking by which it or its assets are bound, nor has incurred any Indebtedness other than as permitted pursuant to the definition of "Special Purpose Entity (Borrower)" herein; and
(y) prior to the date of this Agreement, Borrower has not entered into any Contractual Obligation, or any agreement, instrument or undertaking by which it or its assets are bound or incurred
any Indebtedness other than as permitted pursuant to the definition of "Special Purpose Entity (Borrower)" herein. 

        4.1.24.    Affiliates.    Effective as of the consummation of the
transactions contemplated by this Agreement, the sole member of Borrower is HCR Properties, LLC which owns one hundred percent (100%) of the outstanding limited liability company membership
interests in Borrower. Borrower does not have any subsidiaries except as set forth in Schedule 4.1.1. 

        4.1.25.    Intentionally Omitted.    

        4.1.26.    Leases.    The Master Lease and Operating Lease (together
with any certificates and notifications entered into in connection therewith) provided to Lender on the Closing Date are true, correct, accurate and complete copies of such documents and constitute
the entire agreement between 

55

 

the
parties thereto with respect to the subject matter therein and there are no written agreements modifying, amending, supplementing or restating such documents. Except as set forth on  Schedule 4.1.26,
 to Borrower's knowledge, the Properties are not subject to any Leases other than the Master Lease, the Operating Lease,
Non-Material Leases and residency agreements with residents of the Facilities, and each of the Master Lease and the Operating Lease is a "true lease" for all purposes of the Bankruptcy
Code (including Section 365(d) and 502(b)(6) thereof) and applicable Legal Requirements, and none of the Master Lease or the Operating Lease or any Non-Material Lease constitutes a
financing or conveys any interest in the Properties other than the leasehold interest therein demised thereby. Mortgage Borrower (other than Maryland Borrower) and Maryland Owner are the owners and
lessors of landlord's interest in the Master Lease. Except as set forth on Schedule 4.1.26, to Borrower's knowledge, no Person has any possessory
interest in any Individual Property or right to occupy the same except under and pursuant to the provisions of the Master Lease and the Operating Lease and except for the occupancy and related
residency rights of residents at the Facilities and any Non-Material Lease. The Master Lease and each Operating Lease is in full force and effect and there are no events of default
thereunder by (a) in the case of the Master Lease, either Mortgage Borrower (other than Maryland Borrower) and Maryland Owner or Master Tenant or (b) in the case of each Operating Lease,
either the Master Tenant or the applicable Operator, and there are no conditions that, with the passage of time or the giving of notice, or both, would constitute a material default thereunder. No
Rent under the Master Lease or any Operating Lease has been paid more than one (1) month in advance of its due date, and no Rents or charges under the Master Lease or any Operating Lease have
been waived, released or otherwise discharged or compromised. There has been no prior Transfer of the Master Lease or any Operating Lease or of the Rents thereunder. Master Tenant has not assigned the
Master Lease and has not sublet all or any portion of any Individual Property except pursuant to the Operating Lease. Neither Master Tenant, nor to Borrower's or Master Tenant's knowledge, any other
Person, has a right or option pursuant to the Master Lease or otherwise to purchase all or any part of any Individual Property, except as expressly provided in the Master Lease upon the occurrence of
a Casualty or Condemnation. No Operator has assigned its Operating Lease and, other than pursuant to a Non-Material Lease, sublet all or any portion of any Individual Property except to
residents of the applicable Facility, and the Operators do not hold any Individual Property under assignment and no Person (except the Operator, its employees and residents of the applicable Facility
and, in the case of any Non-Material Lease, the tenant thereunder) occupies any Individual Property. No Operator, nor to Borrower's knowledge any other Person, has a right or option
pursuant to such Operating Lease or otherwise to purchase all or any part of any Individual Property, except as may be expressly provided in the Operating Lease upon the occurrence of a Casualty or
Condemnation. 

        4.1.27.    South Carolina Management Agreement.    Each South Carolina
Management Agreement provided to Lender on the Closing Date are true, correct, accurate and complete copies of such documents and constitute the entire agreement between the parties thereto with
respect to the subject matter thereof and there are no written agreements modifying, amending, supplementing or restating such documents. Master Tenant is the owner of the manager's interest under
each South Carolina Management Agreement. Each South Carolina Management Agreement is in full force and effect and there are no events of default thereunder by Master Tenant or South Carolina
Operator. No management fee or other charges under any South Carolina Management Agreement has been paid more than one (1) month in advance of its due date, and no management fees or other
charges under any South Carolina Management Agreement have been waived, released or otherwise discharged or compromised. There has been no prior sale, encumbrance, pledge, assignment, hypothecation,
grant of a security interest in or other transfer or disposition of the interest of Master Tenant or the applicable South Carolina Operator under any South Carolina Management Agreement. 

56

 

  
        4.1.28.    Principal Place of Business; State of
Organization.    Borrower's (a) principal place of business (or such other location where its books and records are located) as of the date hereof and
(b) jurisdiction of organization as of the date hereof, is as set forth on Schedule 4.1.28 hereto. 

        4.1.29.    Filing and Recording Taxes.    All transfer taxes, stock
transfer stamps, intangible taxes or other amounts in the nature of transfer taxes required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the
creation or transfer of the Collateral to Borrower have been paid. All material state, county and municipal recording, stamp, intangible or other similar tax required to be paid by any Person under
applicable Legal Requirements and applicable Health Care Requirements currently in effect in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of
any of the Loan Documents, including the Pledge Agreement, have been paid or will be paid at Closing. 

        4.1.30.    Special Purpose
Entity/Separateness.    (a)    Borrower hereby represents and warrants that (i) Borrower is a Special Purpose Entity (Borrower), (ii) each of
Mortgage Borrower and Maryland Owner is a Special Purpose Entity (as defined in the Mortgage Loan Agreement), (iii) Principal is a Special Purpose Entity, (iv) Master Tenant is a Special
Purpose Entity, (v) Operator is a Special Purpose Entity and (vi) HCR IV Healthcare, LLC is in compliance with all provisions of its organizational documents, including all
provisions relating to its status as a special purpose bankruptcy remote entity. 

        (b)   The
representations, warranties and covenants set forth in Section 4.1.30(a) shall survive for so long as any
amount remains due and payable to Lender under this Agreement or any other Loan Document. 

        (c)   All
of the assumptions made in the Insolvency Opinion, including any exhibits attached thereto, are true and correct in all material respects and any assumptions made in
any Additional Insolvency Opinion required to be delivered in connection with the Loan Documents, including any schedules and/or exhibits attached thereto, will have been and shall be true and correct
in all material respects. Borrower has complied and will comply with, Principal has complied, Master Tenant has complied and Borrower will cause Master Tenant to comply with, Operator has complied and
Borrower will cause Operator to comply with, each Senior Mezzanine Borrower has complied with, and Borrower will cause each Senior Mezzanine Borrower to comply with, and Mortgage Borrower has complied
with, and Borrower will cause Mortgage Borrower to comply with, all of the material assumptions made with respect to such entity in the Insolvency Opinion. Borrower, Principal, Senior Mezzanine
Borrower, Mortgage Borrower, Maryland Owner, Master Tenant and Operator will have complied and will comply with all of the material assumptions made with respect to such entity in any Additional
Insolvency Opinion. Each entity other than Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Principal, Master Tenant and Operator with respect to which an assumption shall be
made in any Additional Insolvency Opinion will have complied and will comply with all of the material assumptions made with respect to it in any Additional Insolvency Opinion. 

        (d)   All
of the assumptions made in the Solvency Certificate, including any schedules and/or exhibits attached thereto, are true and correct in all material respects. 

        (e)   Other
than Carlyle Partners V MC, L.P., a Delaware limited partnership, no stockholder of Guarantor, and none of the equity holders in any stockholder of
Guarantor, together with the affiliates of such equity holders who are also equity holders of any stockholder of Guarantor, holds more than a forty-nine percent (49%) direct or indirect
interest in Borrower. 

        4.1.31.    O&M Agreements.    The O&M Agreement required by Lender is
in full force and effect and there is no default thereunder by any party thereto and no event has occurred that, with the passage of time and/or the giving of notice or both would constitute a
material default thereunder. 

57

 

        4.1.32.    Illegal Activity.    No portion of any Individual Property,
any Senior Mezzanine Collateral or of the Collateral has been or will be pursuant to the Closing hereunder purchased with proceeds of any illegal activity by Guarantor or any of its Affiliates. 

        4.1.33.    No Change in Facts or Circumstances; Disclosure.    All
information submitted by or on behalf of, and at the direction of, Borrower to Lender with respect to Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Principal, Master Tenant,
Operator, Guarantor, any of the Collateral, any of the Senior Mezzanine Collateral or any Individual Property and in all financial statements, certificates and other documents submitted in connection
with the Loan or in satisfaction of
the terms thereof and all statements of fact made by Borrower in this Agreement or in any other Loan Document, are accurate and correct in all material respects. There has been no material adverse
change in any condition, fact, circumstance or event that would make any such information inaccurate, incomplete or otherwise misleading in any material respect or that could reasonably be expected to
have a Material Adverse Effect. Borrower has disclosed to Lender all material facts and has not failed to disclose any material fact that could cause any material Provided Information or
representation or warranty made herein to be materially misleading. 

        4.1.34.    Investment Company Act.    Borrower is not (a) an
"investment company" or a company "controlled" by an "investment company," within the meaning of the Investment Company Act of 1940, as amended; or (b) subject to any other federal or state law
or regulation which purports to restrict or regulate its ability to borrow money. 

        4.1.35.    Embargoed Person.    At all times throughout the term of
the Loan, including after giving effect to any Transfers permitted pursuant to the Loan Documents, (a) none of the funds or other assets of Borrower, Senior Mezzanine Borrower, Mortgage
Borrower, Maryland Owner, Principal, Master Tenant, Operator and Guarantor constitute property of, or are beneficially owned, directly or indirectly, by any person, entity or government subject to
trade restrictions under U.S. law, including Prescribed Laws, and any Executive Orders or regulations promulgated thereunder, including, but not limited to, those related to Specially Designated
Nationals and Specially Designated Global Terrorists, with the result that the investment in Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Principal, Master Tenant, Operator
or Guarantor, as applicable (whether directly or indirectly), is prohibited by law or the Loan made by Lender is in violation of law ("Embargoed
Person"); (b) no Embargoed Person has any interest of any nature whatsoever in Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Principal, Master
Tenant, Operator or Guarantor, as applicable, with the result that the investment in Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Principal, Master Tenant, Operator or
Guarantor, as applicable (whether directly or indirectly), is prohibited by law or the Loan is in violation of law; and (c) none of the funds of Borrower, Senior Mezzanine Borrower, Mortgage
Borrower, Maryland Owner, Principal, Master Tenant, Operator or Guarantor, as applicable, have been derived from any unlawful activity with the result that the investment in Borrower, Senior Mezzanine
Borrower, Mortgage Borrower, Maryland Owner, Principal, Master Tenant, Operator or Guarantor, as applicable (whether directly or indirectly), is prohibited by law or the Loan is in violation of law.
Notwithstanding the foregoing, Borrower hereby makes no representation set forth in Section 4.1.35 with respect to (i) any Person owning a
direct or indirect interest in Borrower which is publicly traded stock and (ii) any Person holding an interest in Carlyle or any Affiliate of Carlyle (whether directly or indirectly) which can
be transferred without notification to or consent of Carlyle or any of its Affiliates which it directly or indirectly controls and of which Carlyle or any of its Affiliates which it directly or
indirectly controls does not have knowledge. 

        4.1.36.    Certain Financial Representations.    As of the Closing
Date and the consummation of the Merger, Guarantor shall have received Equity Capital representing not less than nineteen percent (19%) of the pro forma capitalization of Guarantor. 

58

 

        4.1.37.    Corporate Loan; Reorganization Documents.    The Corporate
Loan has been made substantially in accordance with the terms and conditions of the Corporate Loan Documents. Borrower has caused to be delivered to Lender true and correct copies of the Corporate
Loan Documents and the Reorganization Documents, and Borrower hereby represents and warrants to Lender that there are no other agreements (of any material nature) with respect to, directly or
indirectly, the Corporate Loan or Reorganization Documents which have not been disclosed to Lender in writing. 

        4.1.38.    Merger.    The Merger has been consummated substantially in
accordance with the terms and conditions of the Merger Agreement. 

        4.1.39.    Ground Lease.    Borrower hereby represents and warrants to
Lender the following with respect to each Ground Lease except as set forth in Schedule 4.1.39 or as amended by estoppels delivered to Lender by
the applicable ground lessors: 

        (a)    Recording; Modification.    Each Ground Lease (or a memorandum thereof) has been duly
recorded. Each Ground Lease permits the interest of Mortgage Borrower to be encumbered by a mortgage and/or the applicable ground lessor has approved and consented to the encumbrance of the applicable
Individual Property by the Mortgage thereon. There have not been any amendments or modifications to the terms of the related Ground Lease since recordation of such Ground Lease (or a memorandum
thereof), with the exception of written instruments which have been recorded or estoppels delivered in connection with the Loan. No Ground Lease may be terminated, surrendered or materially amended
without the prior written consent of Mortgage Lender; provided that no ground lessor shall be prevented from exercising its remedies in accordance with
the applicable Ground Lease if the obligations of the applicable Borrower under the applicable Ground Lease are not performed as provided in such Ground Lease. 

        (b)    No Liens.    Except for the Permitted Encumbrances and other encumbrances of record,
Mortgage Borrower's interest in no Ground Lease is subject to any Liens or encumbrances superior to, or of equal priority with, the Mortgage other than the ground lessor's related fee interest. 

        (c)    Ground Lease Assignable.    Mortgage Borrower's interest in each Ground Lease is
assignable without the consent of the applicable ground lessor to Mortgage Lender, the purchaser at any foreclosure sale or the transferee under a deed or assignment in lieu of foreclosure in
connection with the foreclosure of the Lien of the Mortgage or transfer of Mortgage Borrower's leasehold estate by deed or assignment in lieu of foreclosure. Thereafter, each Ground Lease is further
assignable by such transferee and its successors and assigns without the consent of the applicable ground lessor. 

        (d)    Default.    As of the date hereof, each Ground Lease is in full force and effect and no
default has occurred under any Ground Lease and there is no existing condition which, but for the passage of time or the giving of notice or both, could result in a default under the terms of any
Ground Lease. 

        (e)    Notice.    Each Ground Lease requires the applicable ground lessor to give notice of
any default by Mortgage Borrower to Lender prior to exercising its remedies thereunder. 

        (f)    Cure.    Mortgage Lender is permitted the opportunity (including, where necessary,
sufficient time to gain possession of the interest of Mortgage Borrower under each Ground Lease) to cure any default under any Ground Lease, which is curable after the receipt of notice of any default
before the applicable ground lessor thereunder may terminate the Ground Lease. 

        (g)    Term.    Each Ground Lease has a term which extends not less than ten (10) years
beyond the Maturity Date. 

        (h)    New Lease.    Each Ground Lease requires the applicable ground lessor to enter into a
new lease upon termination of such Ground Lease for any reason, including rejection or disaffirmation of the Ground Lease in a bankruptcy proceeding. 

59

 

        (i)    Insurance Proceeds.    Under the terms of each Ground Lease and the Mortgage, taken
together, any related insurance and condemnation proceeds that are paid or awarded with respect to the leasehold interest will be applied either to the repair or restoration of all or part of the
applicable Individual Property, with Lender having the right to hold and disburse the proceeds as the repair or restoration progresses, or to the payment of the outstanding principal balance of the
Loan together with any accrued interest thereon. 

        (j)    Subleasing.    No Ground Lease imposes any restrictions on subleasing. 

        4.1.40.    Employment Contract.    Paul Ormond, Manor Care's Chief
Executive Officer, has, in connection with the Merger, entered into an amendment to his existing employment contract with Manor Care, which employment contract (as amended) is in full force and
effect. 

        Section 4.2.    Health Care Representations    All of the
representations and warranties contained in Section 4.2 of the Mortgage Loan Agreement are as of the date hereof true and correct. 

        Section 4.3.    Survival of Representations.    Borrower agrees
that all of the representations and warranties of Borrower set forth in Section 4.1,  Section 4.2 and elsewhere in this Agreement and in the other
Loan Documents shall survive for so long as any amount remains owing to Lender under
this Agreement or any of the other Loan Documents by Borrower. All representations, warranties, covenants and agreements made in this Agreement or in the other Loan Documents by Borrower shall be
deemed to have been relied upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf. 

        V.    BORROWER COVENANTS    

        Section 5.1.    Affirmative Covenants.    From the date hereof
and until payment and performance in full of the Debt, Borrower hereby covenants and agrees with Lender that: 

        5.1.1.    Existence; Compliance with Legal Requirements.    Borrower
shall do or cause Mortgage Borrower, Maryland Owner, Master Tenant and Operator to do all things reasonably necessary to preserve, renew and keep in full force and effect its existence, rights,
licenses, permits and franchises and comply with all Prescribed Laws and to comply with all other material Legal Requirements of all Governmental Authorities and material Health Care Requirements and
Environmental Laws applicable to Mortgage Borrower, Maryland Owner, Master Tenant, Operator and the Properties, in the case of all Legal Requirements other than Prescribed Laws and Healthcare
Requirements, except as would not reasonably be expected to have, and does not have, a Material Adverse Effect. Borrower shall use commercially reasonable efforts to cause Mortgage Borrower, Maryland
Owner, Master Tenant and the Operator to keep and maintain in full force and effect all Licenses and all Health Care Licenses necessary for the operation of the Facility on each Individual Property
and as are otherwise necessary for the operation of each Individual Property as currently operated, except as would not reasonably be expected to have, and does not have, a Material Adverse Effect.
There shall never be committed by Borrower and Borrower shall not permit Mortgage Borrower, Master Tenant, Operator or knowingly permit, and shall use commercially reasonable efforts to prevent, any
other Person in occupancy of or involved with the operation or use of the Properties from committing any act or omission affording the federal government or any state or local government the right of
forfeiture against any Individual Property or any part thereof or any monies paid in performance of Mortgage Borrower's or Maryland Owner's obligations under any of the Mortgage Loan Documents.
Borrower hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording such right of forfeiture. Borrower shall at all times cause to be taken all such actions as
may be reasonably necessary to maintain, preserve and protect all franchises and trade names (except as provided in the Master Lease and the Operating Lease) used in or useful to its business and
preserve all the remainder of Mortgage Borrower's and Maryland Owner's property used or useful in the conduct of its business and shall keep or shall cause Master Tenant and the Operator to keep the
Properties in good working order and 

60

 

repair
(reasonable wear and tear excepted), and from time to time make, or cause to be made, all reasonably necessary repairs, renewals, replacements, betterments and improvements thereto, all as more
fully provided in the Mortgages, in each case except as would not reasonably be expected to have, and does not have, a Material Adverse Effect. After prior notice to Lender (which notice shall not be
required with respect to contests of Health Care Requirements which if not complied with would not reasonably be expected to have a Material Adverse Effect), Borrower, Senior Mezzanine Borrower or
Mortgage Borrower and Maryland Owner, at their sole cost and expense, may contest or permit the Master Tenant or Operator to contest by appropriate proceedings promptly initiated and conducted in good
faith and with due diligence and otherwise in accordance with any contract or agreement to which Mortgage Borrower or Maryland Owner is a party and in accordance with all material Legal Requirements,
the validity of any Legal Requirement or Health Care Requirement, the applicability of any Legal Requirement or Health Care Requirement to Borrower, Senior Mezzanine Borrower, Mortgage Borrower or
Maryland Owner, Master Tenant or Operator, the Collateral, the Senior Mezzanine Collateral or any Individual Property or any alleged violation of any Legal Requirement;  provided that (a) no Event
of Default has occurred and is continuing; (b) such proceeding shall be permitted under and be conducted in
accordance with the provisions of any instrument to which Borrower, any Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner is subject and shall not constitute an event of default
thereunder and such proceeding shall be conducted in accordance with all applicable material Legal Requirements and all material Health Care Requirements; (c) no Individual Property nor any
part thereof or interest therein will be in imminent danger of being sold, forfeited, terminated, cancelled or lost; (d) Borrower shall promptly upon final determination thereof cause
compliance in all material respects with any such Legal Requirement or any such Health Care Requirement determined to be valid or applicable or cure any violation of any Legal Requirement or Health
Care Requirement; (e) such proceeding shall not exacerbate the enforcement of the contested Legal Requirement or Health Care Requirement, as the case may be,
against Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, the Collateral, any Senior Mezzanine Collateral and any Individual Property; and (f) Borrower shall, or shall
cause Master Tenant and Operator to, furnish such security as may be required in the proceeding, to insure compliance with such Legal Requirement or such Health Care Requirement, together with all
interest and penalties payable in connection therewith. 

        5.1.2.    Taxes and Other Charges.    (a) Borrower shall pay
all Taxes and Other Charges now or hereafter levied or assessed or imposed against the Properties or any part thereof before the same become delinquent;  provided, however, Borrower's obligation to directly pay Taxes shall be suspended for so long as
Borrower complies with the terms and provisions of Section 7.2 hereof. Borrower will deliver to Lender receipts for payment or other evidence
satisfactory to Lender that the Taxes and Other Charges have been so paid or are not then due and payable no later than ten (10) days prior to the date on which the Taxes and/or Other Charges
would otherwise be delinquent if not paid; provided, however, Borrower is required to furnish such
receipts for payment of Taxes in the event that such Taxes have been paid by Lender pursuant to Section 7.2 hereof. Borrower shall not suffer and
shall promptly cause to be paid and discharged any Lien or charge whatsoever which may be or become a Lien or charge against the Properties, and shall promptly pay (or cause the Master Tenant and/or
the applicable Operator to promptly pay) for all utility services provided to the Properties. After prior notice to Lender, Borrower, at its sole cost and expense, may contest (or cause Mortgage
Borrower and Maryland Owner to contest) by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the amount or validity or application in whole or in
part of any Taxes or Other Charges, provided that (a) no Event of Default has occurred and is continuing; (b) such proceeding shall be
permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower is subject and shall not constitute a default thereunder and such proceeding shall be
conducted in accordance with all applicable material Legal Requirements; (c) no Collateral, Senior Mezzanine Collateral or Individual Property (nor any part thereof or interest therein) 

61

 

will
be in imminent danger of being sold, forfeited, terminated, cancelled or lost; (d) Borrower shall promptly upon final determination thereof pay the amount of any such Taxes or Other
Charges, together with all costs, interest and penalties which may be payable in connection therewith; (e) such proceeding shall suspend the collection of such contested Taxes or Other Charges
from the applicable Individual Property; and (f) Borrower shall furnish such security as may be required in the proceeding to insure the payment of any such Taxes or Other Charges, together
with all interest and penalties thereon. Lender may pay over any such cash deposit or part thereof held by Lender to the claimant entitled thereto at any time when, in the judgment of Lender, the
entitlement of such claimant is established or any Individual Property (or part thereof or interest therein) shall be in danger of being sold, forfeited, terminated, cancelled or lost or there shall
be any danger of the Lien of any Mortgage being subordinated to any such related Lien. 

        (b)   Notwithstanding
anything to the contrary contained in this Section 5.1.2, Borrower's obligations under
clause (a) of this Section 5.1.2 shall be waived so long as Mortgage Borrower and Maryland Owner are in material compliance with their
material obligations under Section 5.1.2 of the Mortgage Loan Agreement. 

        5.1.3.    Litigation.    Borrower shall give prompt notice to Lender
(after Borrower receives notice thereof) of any litigation or governmental proceedings pending or to Borrower's knowledge, threatened in writing against Borrower, Senior Mezzanine Borrower, Mortgage
Borrower, Maryland Owner, Principal, Master Tenant, Guarantor or Operator which would reasonably be expected to have a Material Adverse Effect. 

        5.1.4.    Access to Properties.    Upon prior notice to Borrower
(except during the continuance of an Event of Default, in which event no prior notice shall be required), Lender and its agents shall have the right to enter and inspect the Property at all reasonable
times and during regular business hours, and Borrower shall cause Master Tenant and Operator to permit such access by Lender (subject to the rights of tenants, subtenants and residents). All such
inspections shall be at Borrower's expense, except that, unless an Event of Default is then continuing, any inspections in excess of one per calendar year shall be at Lender's expense. 

        5.1.5.    Notice of Event of Default.    Borrower shall promptly
advise Lender of any matter or occurrence which could reasonably be expected to have a Material Adverse Effect, or of the occurrence of any Event of Default of which Borrower has knowledge. 

        5.1.6.    Cooperate in Legal Proceedings.    Lender has the right to
appear in any material action or proceeding which could reasonably be expected to have, or does have, a material adverse effect, brought with respect to Borrower, Senior Mezzanine Borrower, Mortgage
Borrower, Maryland Owner, Guarantor, Master Tenant, Operator, the Collateral, the Senior Mezzanine Collateral or the Property, and Borrower shall cooperate with Lender in the defense of any action or
proceeding brought with respect to the Property or the Collateral. Lender has the further right to bring any action or proceeding, in the name and on behalf of Borrower, which Lender, in its
reasonable discretion, decides should be brought to protect its interest in the Collateral; provided that Lender shall notify Borrower at least ten
(10) days prior to Lender instituting any such action that it intends to bring such action (unless (a) an Event of Default has occurred and is continuing or (b) the provision of
such notice by Lender would materially prejudice Lender's rights or materially adversely affect Lender's interest in the Property or Lender's rights and remedies under the Loan Documents, in either of
which events such notice shall not be required), and Lender shall endeavor to provide Borrower and its legal counsel reasonable periodic status as to any such action brought by Lender and, provided
that no Event of Default is continuing, Lender shall endeavor to cooperate with Borrower and its legal counsel with respect to the defense by Lender of any such action. Borrower shall cooperate with
Lender with respect to any proceedings before any court, board or other Governmental Authority or Health Care Authority which may in any way affect the rights of Lender hereunder or any rights
obtained by Lender 

62

 

under
any of the other Loan Documents and, in connection therewith, permit Lender, at its election, to participate in any such proceedings. 

        5.1.7.    Special Purpose Entity/Separateness.    Borrower hereby
covenants that until payment in full of the Debt, (i) Borrower shall continue to be a Special Purpose Entity, (ii) Borrower shall cause each of Senior Mezzanine Borrower, Mortgage
Borrower and Maryland Owner to continue to be a Special Purpose Entity (as defined in the Mortgage Loan Agreement), (iii) Principal shall continue to be a
Special Purpose Entity, (iv) Master Tenant shall continue to be a Special Purpose Entity, (v) Operator shall continue to be a Special Purpose Entity and (vi) HCR IV
Healthcare, LLC shall continue to be in compliance with all provisions of its organizational documents, including all provisions relating to its status as a special purpose bankruptcy remote
entity. Borrower shall cause Mortgage Borrower and Maryland Owner to appoint the Independent Directors (Operator) of each Operator as contemplated by paragraphs (e) and (f) of the
definition of "Special Purpose Entity (Operator)" within ten (10) days after the Closing Date and shall give Lender prompt notice thereof. Notwithstanding anything to the contrary contained
herein, the fact that such Independent Directors (Operator) shall not have been appointed prior to such date shall not constitute a breach of representation or other default hereunder. 

        5.1.8.    REIT Protection Covenants.    Notwithstanding anything to
the contrary contained in this Agreement, at all times during which a REIT Lender holds an interest in the Loan: 

        (a)   Each
of the Senior Mezzanine Borrowers, Mortgage Borrowers and Maryland Owner (collectively, the "Collateral Entities")
and the Borrower shall be entities whose separate existence from the ultimate owner of the Borrower is disregarded for Federal income tax purposes. Borrower shall not, and Borrower shall not permit
any of the Collateral Entities to, elect or to take any other action that would cause such Person to be classified as either a partnership or an association taxable as a corporation for Federal income
tax purposes; 

        (b)   The
Borrower shall not, directly or indirectly, own interests in any Persons, including through subsidiaries of the Borrower, other than the Collateral Entities; 

        (c)   Intentionally
omitted; 

        (d)   Intentionally
omitted; 

        (e)   Intentionally
omitted; 

        (f)    The
Master Lease, the Operating Lease, any New Lease and any Non-Material Lease shall satisfy the following requirements: 

          (i)  Rents
payable under each such Lease shall not be based in whole or in part on the income or profits of any Person; 

         (ii)  As
of the date any such Lease was or is entered into or modified, Rents payable under each such Lease shall be set at a fair market rental amount or formula, and the
landlord under each such Lease shall have a reasonable expectation that the lessee under each such Lease will be able to make the payments required by each such Lease; 

        (iii)  Intentionally
omitted; 

        (iv)  No
services or amenities shall be provided to tenants under any such Lease, other than services that are both (1) customarily furnished or rendered by or on
behalf of landlords in connection with the rental of real property of a similar class in the geographic areas in which the Property is located and (2) customarily furnished or rendered in
connection with the rental of space for occupancy only (as opposed to rendered primarily for the convenience of the tenant); and 

63

 

         (v)  Notwithstanding
anything contained in the foregoing clauses (f)(i)-(iv) to the contrary, the requirements set forth in clauses (i)-(iv) above shall only
apply to Non-Material Leases (including any Non-Material Leases that are New Leases) to the extent the Rents from all such Non-Material Leases, in the aggregate,
exceed 4% of the sum of all subrents received by Master Tenant under the subleases under the Master Lease; 

        (g)   Intentionally
omitted; 

        (h)   The
Borrower shall not, in the aggregate, own (i) more than $100,000 of assets, other than the Collateral as of the Closing Date or any real properties acquired
in the future, Improvements associated with such real properties, cash, bank time deposits, all amounts on deposit in the Accounts under the Cash Management Agreement and any Letters of Credit
delivered to Lender in accordance with Article VII hereof, goodwill or receivables which arise in the ordinary course of its rental business (e.g., Rents paid pursuant to the Master
Lease), and (ii) any stock, evidence of Indebtedness, or other "securities" as such term is defined in the Investment Company Act of 1940 (other than interests in the Collateral Entities); 

        (i)    Each
of the Collateral Entities shall not, in the aggregate, own (i) more than $100,000 of assets, other than the Collateral owned by such Collateral Entity as of
the Closing Date (which, in the case of the Senior Mezzanine Borrowers constitutes an indirect interest in the Properties, and in the case of the Mortgage Borrowers (other than the Maryland Borrower)
and Maryland Owner, constitutes its ownership interest in the Properties) or any real properties acquired in the future, Improvements associated with such real properties, cash, bank time deposits,
all amounts on deposit in the Accounts under the Cash Management Agreement and any Letters of Credit delivered to Lender in accordance with Article VII hereof, goodwill or receivables which
arise in the ordinary course of its rental business (e.g., Rents paid pursuant to the Master Lease), and (ii) any stock, evidence of Indebtedness, or other "securities" as such term is
defined in the Investment Company Act of 1940; and 

        (j)    The
Borrower and the Collateral Entities shall not, in the aggregate, derive more than $100,000 of income in any calendar year other than from Rents, interest on bank
time deposits, and from Permitted Investments. 

        5.1.9.    Further Assurances.    Borrower shall, or shall cause
Mortgage Borrower, Maryland Owner, Guarantor, Master Tenant and Operator to, at Borrower's sole cost and expense: 

        (a)   furnish
to Lender all instruments, documents, boundary surveys, footing or foundation surveys, certificates, plans and specifications, appraisals, title and other
insurance reports and agreements, and each and every other document, certificate, agreement and instrument, in each case, which are required to be furnished by Borrower, Mortgage Borrower, Maryland
Owner, Guarantor, Master Tenant and Operator pursuant to the terms of the Loan Documents or which are reasonably requested by Lender in connection therewith; and 

        (b)   execute
and deliver to Lender such documents, instruments, conveyances, certificates, assignments and other writings, and do such other acts necessary or desirable, to
evidence, preserve, perfect and/or protect the collateral at any time securing or intended to secure the obligations of Borrower under the Loan Documents, as Lender may reasonably require. 

        5.1.10.    Disregarded Entities.    Each of Borrower, Mortgage
Borrower, Maryland Owner and the Other Mezzanine Borrowers (as used in this Section 5.1.10, the "Disregarded
Entities") shall be entities whose separate existence from the first corporation treated as such for Federal income tax purposes above the Disregarded Entities in the vertical
chain of ownership of such entities is disregarded for Federal income tax purposes. 

        5.1.11.    Financial Reporting.    (a) Borrower will keep and
maintain or will cause to be kept and maintained on a Fiscal Year basis, in accordance with GAAP, proper and accurate books, records and 

64

 

accounts
reflecting all of the material financial affairs of Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Master Tenant and Operator and all items of income and expense in
connection with the operation on an individual basis of the Properties and the Collateral. During a Trigger Period or during the continuance of an Event of Default, Lender shall have the right from
time to time at all times during normal business hours upon reasonable notice to examine such books, records and accounts (including, without limitation, Medicare and Medicaid cost reports) at the
office of Borrower or any other Person maintaining such books, records and accounts and to make such copies or extracts thereof as Lender shall desire. After the occurrence of an Event of Default,
Borrower shall pay any reasonable costs and expenses incurred by Lender to examine Borrower's, Senior Mezzanine Borrower's, Mortgage Borrower's, Maryland Owner's, Master Tenant's and Operator's
accounting records with respect to the Properties (including, without limitation, Medicare and Medicaid cost reports), the Senior Mezzanine Collateral and the Collateral, as Lender shall reasonably
determine to be necessary or appropriate in the protection of Lender's interest. Borrower shall have the right to have a responsible officer present at any such inspection. 

        (b)   Subject
to the other provisions of this Section 5.1.11(b), Borrower will furnish or cause to be furnished to
Lender annually, within ninety (90) days following the end of each Fiscal Year of Borrower, commencing with the Fiscal Year ending on December 31, 2008, a complete copy of Senior
Mezzanine Borrower's, Mortgage Borrower's, Borrower's, Maryland Owner's, Master Tenant's and Operator's annual financial statements audited by a Pre-Approved Accounting Firm or other
independent certified public accountant reasonably acceptable to Lender in accordance with GAAP covering the Properties for such Fiscal Year, containing statements of profit and loss for Mortgage
Borrower, Maryland Owner, Master Tenant and Operator, a balance sheet for Mortgage Borrower, Master Tenant and Operator and a statement of cash flow for Mortgage Borrower, Maryland Owner, Master
Tenant and Operator (collectively, the "Audited Financial Statements"). For the avoidance of doubt, it is agreed that for purposes of this  Section 5.1.11 in no event shall it be required that Audited Financial Statements be furnished to Lender on an Individual Property by Individual
Property basis, and the financial information and statements for each of the entities constituting Mortgage Borrower (and Maryland Owner shall be included therein) shall be prepared on a consolidated
basis and the Audited Financial Statements for each entity constituting Operator shall be prepared on a consolidated basis, in each case together with a combining schedule containing the EBITDA of
each Individual Property. Mortgage Borrower's, Maryland Owner's, Master Tenant's and Operator's annual financial statements shall be accompanied by (i) an opinion of a Pre-Approved
Accounting Firm or other independent certified public accountant reasonably acceptable to Lender, and (ii) an Officer's Certificate (A) of Borrower certifying that as of the date thereof
whether there exists an Event of Default under the Loan Documents, executed and delivered by, or applicable to, Borrower, and if such Event of Default exists, the nature thereof, the period of time it
has existed and the action then being taken to remedy the same and (B) of Master Tenant certifying that as of the date thereof whether there exists an event of default under the Master Lease,
and if such event of default exists, the nature thereof, the period of time it has existed and the action then being taken to remedy the same. Notwithstanding anything to the contrary contained
herein, as to financial statements as described above (or elsewhere in this Article V including in subparagraphs (c) and (d) below)
which pertain to the actual operations of the Facilities as run by Master Tenant or Operator, Borrower may cause to be substituted statements or certificates prepared by Master Tenant or Operator,
respectively, or their respective independent certified public accountant for such statements required to be provided by Borrower herein, which statements may be certified by Master Tenant or
Operator, as applicable, in lieu of by Borrower and which statements may take the form of, contain such information as required by, and have such due dates as the statements required to be provided by
Master Tenant under the Master Lease or Operator under the Operating Lease, as applicable. 

        (c)   Borrower
will furnish, or cause to be furnished, to Lender within forty-five (45) days after the end of each calendar quarter of each Fiscal Year,
commencing with the calendar quarter ending on 

65

 

March 31,
2008, the following items, accompanied by an Officer's Certificate stating that such items fairly and correctly reflect in all material respects of the financial condition and results
of the operations of Mortgage Borrower, Maryland Owner, Master Tenant and Operator and the Properties on a combined basis, together with a combining schedule containing the EBITDA of each Individual
Property and which items shall be subject to year end audit and any changes that may result therefrom: (i) quarterly and year-to-date operating statements (including
Capital Expenditures) prepared for each calendar quarter, noting Net Operating Income, Gross Income from Operations, and Operating Expenses (not including any contributions to the Replacement Reserve
Account), and, upon Lender's reasonable request, other information necessary and sufficient to fairly represent the financial position and results of operation of the Properties during such calendar
quarter, all in form reasonably satisfactory to Lender and in the form set forth on Schedule 5.1.11(c); (ii) a calculation reflecting the
annual and quarterly Debt Service Coverage Ratio and annual and quarterly Operating Cash Flow Coverage Ratio for the immediately preceding twelve (12) month period as of the last day of such
quarter and (iii) a Net Cash Flow Schedule. 

        (d)   At
Lender's request, Borrower will furnish, or cause to be furnished, prior to the last Securitization of the Mortgage Loan, to Lender within thirty (30) days
after the end of each calendar month beginning with January 2008, monthly and year-to-date operating statements (including Capital Expenditures) prepared for each calendar
month, noting Net Operating Income, Gross Income from Operations, and Operating Expenses (not including any contributions to the Replacement Reserve Account), accompanied by an Officer's Certificate
stating that such items are a true, correct, accurate, and complete compilation in all material respects of the financial condition and results of the operations of Mortgage Borrower, Maryland Owner,
Master Tenant and Operator and the Properties on an individual and a combined basis, together with a combining schedule which details the EBITDA of each Individual Property and which items shall be
subject to year-end audit and any changes that may result therefrom. 

        (e)   The
operating statements delivered pursuant to Section 5.1.11(d) shall be in substantially the same form as those
delivered pursuant to Section 5.1.11(c). 

        (f)    Commencing
in calendar year 2008, during a Trigger Period, Borrower shall cause Mortgage Borrower and Maryland Owner to submit to Lender for Lender's approval, which
approval shall not be unreasonably withheld (provided, that Lender shall only have such approval right to the extent it is maintaining the Low DSCR
General Reserve Account), a quarterly budget for capital expenditures (the "Quarterly CapEx Budget") not later than thirty (30) days prior to the
commencement of such calendar quarter in the form attached hereto as Schedule 5.1.11(f) (each Quarterly CapEx Budget approved by Lender
(provided, that Lender shall only have such approval right to the extent it is maintaining the Low DSCR General Reserve Account), an
"Approved Quarterly CapEx Budget"). In the event that Lender objects to a proposed Quarterly CapEx Budget submitted by Mortgage Borrower and Maryland
Owner hereunder, Lender shall advise Borrower of such objections within fifteen (15) days after receipt thereof (and shall deliver to Borrower a reasonably detailed description of such
objections) and Borrower shall promptly cause Mortgage Borrower and Maryland Owner to revise such Quarterly CapEx Budget and resubmit the same to Lender. Lender shall advise Borrower of any objections
to such revised Quarterly CapEx Budget within ten (10) days after receipt thereof (and shall deliver to Borrower a reasonably detailed description of such objections), and Borrower shall cause
Mortgage Borrower and Maryland Owner to promptly revise the same in accordance with the process described in this clause (f) until Lender shall
approve the Quarterly CapEx Budget. During any period for which Lender has not approved a Quarterly CapEx Budget, Borrower shall not have the right to cause Mortgage Borrower and Maryland Owner to
expend any Low DSCR General Reserve Funds for Capital Expenditures other than as necessary to comply with Legal Requirements and Health Care Requirements or to complete any alterations previously
approved by Lender pursuant to Section 5.1.23 or to restore damage from any Casualty to the extent of any Net Proceeds Deficiency. 

66

 

        (g)   Any
reports, statements or other information required to be delivered under this Agreement shall, at Borrower's option, be delivered (i) in paper form (except for
any financial reports, statements or information), (ii) on compact discs or digital video discs or (iii) in electronic form and prepared using a Microsoft Office product such as Word,
Access or Excel for Windows (which files may be prepared using a spreadsheet program and saved as word processing files). The form of the reports, statements or other information required to be
furnished by Master Tenant and Operator under the Master Lease and Operating Lease, respectively, shall be in such form specified above. At Lender's request, Borrower shall, and shall cause Mortgage
Borrower and Maryland Owner to, reasonably cooperate, with Lender in helping Lender understand the reports, statements and other information delivered pursuant to this Agreement, including, without
limitation, explanations thereof to enable Lender to effect compliance with laws, rules and regulations applicable to Lender. 

        5.1.12.    Business and Operations.    Borrower will, and will cause
Mortgage Borrower, Maryland Owner, Master Tenant and Operator to, continue to engage in the businesses presently conducted by it consistent with past practices as and to the extent the same are
necessary for the ownership, maintenance, management, leasing and operation of the Properties. Each of Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Master Tenant and
Operator will qualify to do business and will remain in good standing under the laws of each jurisdiction as and to the extent the same are required for the ownership, maintenance, management and
operation of the Properties, except in each case as would not reasonably be expected to have, and does not have, a Material Adverse Effect. 

        5.1.13.    Title to the Properties.    Borrower shall cause Mortgage
Borrower and Maryland Owner to warrant and defend (a) the title to each Individual Property and every part thereof, subject only to Liens permitted under the Mortgage Loan Agreement (including
Permitted Encumbrances thereunder) and (b) the validity and priority of the Liens of the Mortgages and the Assignments of Leases, subject only to Liens permitted under the Mortgage Loan
Agreement (including Permitted Encumbrances thereunder), in each case against the claims of all Persons whomsoever. Borrower shall cause Senior Mezzanine Borrower to warrant and defend (a) the
title to the applicable Senior Mezzanine Collateral, subject only to Liens permitted under the applicable Senior Mezzanine Loan Agreement and (b) the validity and priority of the Liens of the
Pledge Agreement (as defined in the applicable Senior Mezzanine Loan Agreement), in each case against the claims of all Persons whomsoever. Borrower shall warrant and defend (a) title to the
Collateral, subject only to Liens permitted hereunder and (b) the validity and priority of the Liens of the Pledge Agreement, in each case against the claims of all Persons whomsoever. Borrower
shall reimburse Lender for any losses, costs, damages or expenses (including reasonable attorneys' fees and court costs) incurred by Lender if an interest in the Collateral, other than as permitted
hereunder, is claimed by another Person. 

        5.1.14.    Costs of Enforcement.    In the event (a) of the
exercise by Lender of any or all of its rights or remedies under the Pledge Agreement or any other Loan Documents as and when permitted thereby or (b) of the bankruptcy, insolvency,
rehabilitation or other similar proceeding in respect of Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner or any of their respective constituent Persons or an assignment by
Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner or any of their respective constituent Persons for the benefit of its creditors, Borrower, Senior Mezzanine Borrower, Mortgage
Borrower or Maryland Owner, their respective successors or assigns, shall be chargeable with and agrees to pay all costs of collection and defense, including reasonable attorneys' fees and costs,
incurred by Lender, Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner in connection therewith and in connection with any appellate proceeding or post-judgment action
involved therein, together with all required service or use taxes. 

67

 

  
        5.1.15.    Estoppel Statement.    (a) After request by Lender,
Borrower shall, within ten (10) days, furnish Lender with an Officer's Certificate setting forth (i) the original principal amount of the Loan, (ii) the unpaid principal amount of
the Loan, (iii) the Applicable Interest Rate of the Loan, (iv) the date installments of interest and/or principal were last paid, (v) any offsets or defenses to the payment of the
Debt, if any, (vi) that the Note, this Agreement, the Pledge Agreement and the other Loan Documents are valid, legal and binding obligations and have not been modified or if modified, giving
particulars of such modification and (vii) such other factual matters that are reasonably requested by Lender. 

        (b)   Borrower
shall cause to be delivered to Lender, within ten (10) days of Lender's request, tenant estoppel certificates from Master Tenant in form and substance
reasonably satisfactory to Lender. 

        (c)   Borrower
shall cause to be delivered to Lender, within ten (10) days of Lender's request, tenant estoppel certificates from each Operator in form and substance
reasonably satisfactory to Lender. 

        (d)   After
request by Borrower, Lender shall, within ten (10) days, furnish Borrower with a certificate setting forth the items provided for in clauses (i)
through (iv) of Section 5.1.15(a) and whether there is any outstanding notice of default given by Lender. After request by Borrower,
Lender shall direct Mortgage Lender, to furnish Borrower, within ten (10) days of such request, a certificate setting forth the items provided for in clauses (i) through (iv) of  Section 5.1.15(a)
 of the Mortgage Loan Agreement and whether there is any outstanding notice of default given by Mortgage Lender. After request
by Borrower, Lender shall direct Senior Mezzanine Lender, to furnish Borrower, within ten (10) days of such request, a certificate setting forth the items provided for in clauses (i)
through (iv) of Section 5.1.15 of the applicable Senior Mezzanine Loan Agreement and whether there is any outstanding notice of default
given by the applicable Senior Mezzanine Lender. 

        5.1.16.    Performance by Borrower.    Borrower shall observe, perform
and fulfill each and every covenant, term and provision of each Loan Document executed and delivered by, or applicable to it, and shall pay when due all costs, fees and expenses as required
thereunder. Borrower shall not enter into or otherwise suffer or permit any amendment, waiver, supplement, termination or other modification of any Loan Document executed and delivered by, or
applicable to it without the prior consent of Lender. 

        5.1.17.    Loan Proceeds.    Borrower shall use the proceeds of the
Loan received by it on the Closing Date only for the purposes set forth in Section 2.1.4. 

        5.1.18.    Ground Lease.    (i) Borrower shall cause Mortgage
Borrower, at its sole cost and expense, to promptly and timely perform and observe in all material respects all the material terms, covenants and conditions required to be performed and observed by
Mortgage Borrower as lessee under each Ground Lease (including, but not limited to, the payment of all rent, additional rent, percentage rent and other charges required to be paid under each Ground
Lease) and to timely perform, observe and be in compliance with the covenants set forth in Section 5.1.18 of the Mortgage Loan Agreement. 

        5.1.19.    Required Repairs.    Borrower shall cause Mortgage Borrower
and Maryland Owner to comply with the covenants set forth in Section 5.1.19 of the Mortgage Loan Agreement. 

        5.1.20.    South Carolina Management Agreement.    Borrower shall
cause each South Carolina Mortgage Borrower to comply with the covenant set forth in section 5.1.20 of the Mortgage Loan Agreement. 

        5.1.21.    No Joint Assessment.    Borrower shall not cause or permit
Mortgage Borrower or Maryland Owner to suffer or permit (except with respect to any of the Properties for which same exists as of the date hereof) or initiate the joint assessment of any Individual
Property (a) with any other real property 

68

 

constituting
a tax lot separate from such Individual Property and which is not itself included among the Properties, and (b) which constitutes real property with any portion of such Individual
Property which may be deemed to constitute personal property, or any other procedure whereby the lien of any taxes which may be levied against such personal property shall be assessed or levied or
charged to such real property portion of the Individual Property. 

        5.1.22.    Leases.    Borrower shall not execute (or permit Mortgage
Borrower or Maryland Owner to execute) any Lease for all or any portion of any Individual Property (a "New Lease"), except for the Master Lease, the
Operating Lease and any Non-Material Lease, without Lender's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Borrower shall cause to be
performed at all times promptly and faithfully in all material respects and subject to any grace and cure periods set forth therein, if any, all of the material covenants, conditions and agreements
contained in the Master Lease, now or hereafter existing, on the part of the landlord and tenant thereunder to be kept and performed. Borrower shall not permit Mortgage Borrower or Maryland Owner to
do or cause to be done or to be suffered to be done any act that would reasonably be expected to result in a default by Mortgage Borrower or Maryland Owner under the Master Lease, a default by Master
Tenant under any Operating Lease or permit the Master Tenant or the Operator thereunder to withhold any payment of Rent and, shall not assign, sublet or otherwise Transfer, except for Permitted
Encumbrances, or permit the assignment, sublet or other Transfer of, the Master Lease or the Operating Lease or any Rents thereunder or other payments. Borrower, at no cost or expense to Lender, shall
cause to be performed and observed each and every material condition and covenant under the Master Lease to be performed or observed by the landlord thereunder and enforce (short of termination) the
performance and observance by Master Tenant of each and every material condition and covenant under the Master Lease to be performed or observed by the tenant thereunder, and shall, through the
exercise of its rights under the Master Lease, cause the Master Tenant to enforce (short of termination) the performance and observance by the Operator of each and every material covenant and
condition under the Operating Lease to be performed by the tenant thereunder. Borrower shall not, without the prior written consent of Lender, permit the modification, amendment, supplement or
restatement of the Master Lease or the Operating Lease (provided, however, that an Operating Lease may be terminated and/or surrendered and the Master Lease may be amended to reflect same solely in
connection with a Permitted Release, Unlicensed Facility Release, Affected Property Release, Limited Cure Release or substitution of an Individual Property pursuant to Sections 2.6, 5.1.28,
6.4(d), 8.1(c) and 2.5 of the Mortgage Loan Agreement, respectively and pursuant to Sections 2.6, 5.1.33, 8.1(c) and  2.5 hereof), or permit the
termination or surrender of the Master Lease or the Operating Lease, or permit the release or waiver of the Master Tenant or
the Operator from the performance or observance of any material obligation or condition under the Leases (other than Non-Material Leases), and at all times during the term of the Loan, and
each Operator shall guaranty the payment obligations of each other Operator under its respective Operating Lease. Except with respect to occupancy or residency agreements for residents at the
Facilities and Non-Material Leases, Borrower shall not permit the prepayment of any rents under the Leases for more than one (1) month prior to the due date thereof. Notwithstanding
the foregoing, Lender shall not unreasonably withhold its consent to any modification, amendment or waiver of any provision of an Operating Lease or the Master Lease as may be reasonably necessary to
comply with the requirements of this Agreement, any other Loan Document or any Mortgage Loan Document, any Legal Requirement or Health Care Requirement, or that makes the provisions of the Operating
Lease and/or the Master Lease consistent with the provisions of this Agreement, any other Loan Document or any Mortgage Loan Document. Notwithstanding anything contained in this  Section 5.1.22 to
the contrary, (a) Lender's consent to any material amendment, modification, supplement or restatement of the Master
Lease shall also be conditioned on (1) the delivery by Borrower of an Additional Insolvency Opinion and an Additional True-Lease Opinion acceptable to Lender and (2) the
satisfaction of the applicable REIT Representations and Covenants related to Leases, and (b) Lender's consent to (i) any New Lease other than Non-Material Leases, 

69

 

(ii) any
assignment of any Lease (or of any interest therein) or (iii) any material amendment, material modification, material supplement or material restatement of any Lease (other than
Non-Material Leases) shall also be conditioned on (1) the delivery by Borrower of an Additional Insolvency Opinion and an Additional True-Lease Opinion acceptable to
Lender and (2) the satisfaction of the applicable REIT Representations and Covenants related to Leases. 

        5.1.23.    Alterations.    (a) Borrower shall obtain Lender's
prior consent to any alterations to any Improvements, which consent shall not be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, Lender's consent shall not be required in
connection with any alterations (i) that are permitted to be made by Operator under the Operating Lease without Borrower's consent (or if Borrower does not have any discretion to withhold such
consent under the terms of the Operating Lease) and (ii) that could not reasonably be expected to have a Material Adverse Effect; provided that,
in all cases, such alterations (A) do not adversely affect any structural component of any Improvements or any HVAC system or other building system such as electrical, plumbing and vertical
transport contained in any Improvements and the aggregate cost thereof does not exceed, with respect to any Individual Property, the greater of (i) Five Million Dollars ($5,000,000.00) and
(ii) five percent (5%) of the Allocated Loan Amount (as defined in the Mortgage Loan Agreement) for such Individual Property, or (B) are performed in connection with the Restoration of
an Individual Property after the occurrence of a Casualty in accordance with the terms and provisions of this Agreement, the Senior Mezzanine Loan Agreement and the Mortgage Loan Agreement. If the
total unpaid amounts due and payable with respect to alterations to the Improvements at any Individual Property (other than such amounts already reserved pursuant to  Article VI, and amounts to be
paid or reimbursed by tenants under the Leases (other than the Master Lease or any Operating Lease) (the
"Remaining Costs")) shall at any time exceed the Individual Property Threshold Amount, or in the event that the Remaining Costs do not exceed the
Individual Property Threshold Amount but the Remaining Costs in respect of all alterations to the Improvements at the Property (in the aggregate and calculated including the Remaining Costs under such
Individual Property (such amount, the "Aggregate Remaining Costs")) shall at any time exceed the Aggregate Property Threshold Amount (the Individual
Property Threshold Amount or the Aggregate Property Threshold Amount, as applicable, the "Threshold Amount"), Borrower shall promptly deliver to Lender
as security for the payment of such amounts and as additional security for Borrower's obligations under the Loan Documents any of the following (the "Alteration
Security"): (A) cash, (B) U.S. Obligations, or (C) other securities having a rating acceptable to Lender. Such security shall be in an amount equal to the
excess of the Remaining Costs or the Aggregate Remaining Costs, as applicable, over the applicable Threshold Amount and, provided no Event of Default shall occurred and be continuing, Lender shall
disburse, from time to time (but not more than once in any calendar month, a portion of such security consisting of cash to pay or reimburse Borrower, at Borrower's request, for the payment of costs
and expenses incurred in respect of such alterations, as evidenced by an Officer's Certificate of Borrower. Provided no Event of Default shall be continuing, at such time as Lender shall have
determined in its reasonable discretion that the remaining total unpaid amounts due and payable with respect to an alteration is less than the applicable Threshold Amount, Lender shall promptly return
to Borrower any portion of the Alteration Security with respect to such alteration (if any) then remaining on deposit with Lender. Borrower shall be relieved of any obligation to deliver an Alteration
Security in accordance with this Section 5.1.23(a) so long as Mortgage Borrower has complied with its identical obligations set forth in
Section 5.1.23(a) of the Mortgage Loan Agreement, or alternatively, any Senior Mezzanine Borrower has complied with its identical obligations set forth in Section 5.1.23(a) of the
applicable Senior Mezzanine Loan Agreement. 

        (b)   With
respect to any alteration proposed by Borrower which requires Lender's prior approval pursuant to  Section 5.1.23(a), Borrower shall deliver to Lender detailed plans, specifications and a budget for
the proposed alteration, together with all
materials, financial statements and any other information (and in such detail) as reasonably requested by Lender in order to evaluate such proposed 

70

 

alteration.
Any proposed alteration which is approved by Lender hereunder shall only extend to the proposed alteration as detailed in the plans and specifications and in the financial and other
information with respect thereto delivered to Lender in accordance with this Section 5.1.23(b), subject to immaterial modifications, and Borrower
shall be required to resubmit to Lender for its approval in accordance with this Section 5.1.23 any proposed alteration which does not satisfy
the foregoing condition, which re-submittal shall indicate the changes from the plans and specifications and/or the financial or other information with respect to the proposed alteration
delivered to Lender in connection with this Section 5.1.23. 

        5.1.24.    Certain Further Covenants.    Borrower further covenants
and agrees with Lender as follows: 

        (a)   The
operations conducted or to be conducted at each Facility shall at all times, at a minimum, be conducted in a manner consistent with material Health Care Requirements
and, in connection therewith, Borrower covenants that: 

          (i)  Intentionally
Omitted; 

         (ii)  each
Facility will be operated in compliance with applicable material Legal Requirements and material Health Care Requirements relating thereto and all Health Care
Licenses except as would not reasonably be expected to have, and does not have, a Material Adverse Effect, and except as provided in the next sentence, without reduction in the number of licensed beds
or units or beds or units authorized for use in Medicare or Medicaid reimbursement programs, managed care company, insurance company, or other third-party payor reimbursement programs. In addition,
for so long as (A) no Event of Default is continuing, and (B) the Operator is wholly owned and controlled by Manor Care and Manor Care's current management team or a management team with
a substantially equivalent level of experience is in place, the restriction under this clause (ii) on reducing beds and units shall not apply except that, during the continuance of a Trigger
Period, if clauses (A) and (B) above are satisfied, such restriction shall apply, provided, however, that Operator shall have the right to so reduce beds and units by an amount of not
more than 5% of the aggregate number of beds or more than 5% of the aggregate number of units in all Facilities; and 

        (iii)  the
Facilities will be operated in a manner that will not result in a material reduction, suspension, denial or elimination of reimbursement for services from, or
material recoupment by, Medicare or Medicaid, or any managed care company, insurance company, or other third-party payor except as would not reasonably be expected to have, and does not have, a
Material Adverse Effect. 

        (b)   Except
as permitted under the Master Lease or Operating Lease or otherwise permitted hereunder, Borrower shall not permit Mortgage Borrower or Maryland Owner to (without
Lender's prior written consent) assign or transfer, except to Master Tenant or Operator, or permit Master Tenant or any Operator to assign or transfer any of its interest in any Health Care Licenses
or reimbursement contracts (including rights to payment thereunder), including any Medicare, Medicaid, managed care company, insurance company, or other material third-party payor agreements,
pertaining to Mortgage Borrower, Maryland Owner, Master Tenant or Operator or any Facility, except in each case to a de minimis extent. 

        (c)   Borrower
shall or shall direct Master Tenant and Operator to (and shall enforce Master Tenant's or Operator's respective obligations under the Master Lease and Operating
Lease to) (i) during the continuance of an Event of Default or a Trigger Period, furnish Lender, within thirty (30) days of the receipt by Borrower from Mortgage Borrower and Maryland
Owner (or Master Tenant or Operator, as the case may be), of the annual Medicaid reimbursement rate sheets and the Medicare published rates, and any amendments thereto, and (ii) file all
required Medicare or Medicaid cost reports on or prior to the date such reports are due. 

71

 

        (d)   Borrower
shall not permit Mortgage Borrower, Maryland Owner, Master Tenant, Operator or any Facility to, other than in the normal course of business, change the terms of
any of the Medicare, Medicaid, or material third-party payor programs or its normal billing payment or reimbursement policies and related procedures, including the amount and timing of finance
charges, fees and write-offs, in each case in any material respect. 

        (e)   If,
with respect to any Facility, Mortgage Borrower, Maryland Owner, Master Tenant or Operator shall receive a notice of the termination or decertification of any
Medicare, Medicaid or third party payor contract or provider agreement, then Borrower shall promptly deliver (or cause Mortgage Borrower and Maryland Owner to deliver) to Lender a copy thereof and,
with respect to such Facility, Borrower shall direct Master Tenant and Operator to (and shall enforce Master Tenant's and Operator's respective obligations under the Master Lease and Operating Lease
to) furnish Lender, within ten (10) Business Days of receipt but at least five (5) days prior to the earliest date on which Mortgage Borrower and Maryland Owner (or Master Tenant and
Operator, as the case may be) is required to take any action with respect thereto, a copy of any Medicare, Medicaid or other licensing or accreditation or ranking agency or entity survey, report,
warning letter or notice and any statement of deficiencies that resulted in such termination or decertification and within the time period required by the particular agency for furnishing a plan of
correction also furnish or cause to be furnished to Lender a copy of the plan of correction generated from such survey, report, warning letter or notice for Operator and any subsequent correspondence
related thereto. In all events, Borrower shall direct Master Tenant and Operator to (and shall enforce Master Tenant's and Operator's respective obligations under the Master Lease and Operating Lease
to) correct or cause to be corrected any deficiency, the curing of which is a condition of continued licensure or of full participation in Medicare or Medicaid or a care program offered by an
insurance company, managed care company or other third-party payor by the date required for cure by such agency or entity (plus extensions granted by such agency or entity). 

        (f)    Borrower
shall direct Master Tenant and Operator to (and shall enforce Master Tenant's and Operator's respective obligations under the Master Lease and Operating Lease
to) furnish Lender, promptly after receipt thereof by Borrower (or Master Tenant or Operator, as the case may be), any other notices or charges issued relating to the non-compliance by
Mortgage Borrower or Maryland Owner (or Master Tenant or Operator, as the case may be) with any Health Care Authority, insurance company, managed care company or other third-party payor Legal
Requirements or Health Care Requirements, Health Care Licenses, certificates, authorizations or approvals which would reasonably be expected to, or do, have a Material Adverse Effect. 

        (g)   Borrower
shall furnish Lender, within ten (10) days of receipt by Mortgage Borrower or Maryland Owner, any and all notices (regardless of form) from any Health
Care Authority that Mortgage Borrower's, Maryland Owner's, Master Tenant's or Operator's license, or Medicare or Medicaid certification by any Health Care Authority, is being revoked or suspended or
to materially fine, materially penalize or impose remedies of a material nature upon Mortgage Borrower, Maryland Owner, Master Tenant or Operator. 

        (h)   No
Health Care License with respect to a Facility shall be (i) transferred to any location other than the applicable Facility except in each case to a  de minimis extent or (ii) pledged as
collateral security (other than any pledge as collateral security to Corporate Loan Lender which pledge is
subject to the interests of (A) the landlord under the Operating Lease and (B) Mortgage Lender under the Mortgage Loan, including the Liens and security interests of the Mortgage Loan
Documents). The preceding sentence shall not preclude a Facility from transferring a Health Care License to a replacement facility in accordance with Legal Requirements and Health Care Requirements
and in doing so such Facility will meet any Loan Document requirements and Mortgage Loan Document requirements. 

72

 

        (i)    Except
as would not reasonably be expected to have, and does not have, a Material Adverse Effect, no Tenant, Operator or Facility shall take any action to rescind,
withdraw, revoke, amend, modify, supplement or otherwise alter the nature, tenor or scope of any Health Care License or applicable provider payment program participation. 

        Certain
covenants contained in this Section 5.1.24 are subject to a Material Adverse Effect qualifier. If Borrower shall become
aware of any material event, condition or omission that would have constituted a breach of any such covenant if same were not subject to a Material Adverse Effect qualifier, then Borrower shall cause
Mortgage Borrower or Maryland Owner to commence promptly in the ordinary course of business and diligently pursue to completion the cure of such event, condition or omission in all material respects. 

        5.1.25.    South Carolina Conditions.    Borrower shall use
commercially reasonable efforts to cause to be satisfied the South Carolina Conditions within one (1) year of the Closing Date (as such period may be extended by Lender in its reasonable
discretion so long as Borrower or Mortgage Borrower is diligently proceeding in good faith to so satisfy the South Carolina Conditions). Borrower shall cause Mortgage Borrower or Maryland Owner to in
writing keep Lender apprised of the status of the efforts to satisfy the South Carolina Conditions. 

        5.1.26.    Zoning Compliance.    Borrower shall cause Mortgage
Borrower and Maryland Owner to (i) use commercially reasonable efforts to remedy all zoning and related matters and violations set forth on  Schedule 5.1.26 as expeditiously as is commercially
reasonable, and (ii) furnish Lender with reasonably satisfactory evidence of the
foregoing, all in a commercially reasonable manner. 

        5.1.27.    Replacements.    Borrower shall cause Mortgage Borrower and
Maryland Owner to spend on Replacements with respect to each Facility, in each calendar year, an amount equal to $300 multiplied by the aggregate number of beds at the applicable Facility. 

        5.1.28.    Mortgage Loan Reserve Funds.    (a) Borrower shall
cause Mortgage Borrower to deposit and maintain each of the Mortgage Loan Reserve Funds in accordance with the terms of the Mortgage Loan Agreement as more particularly set forth in  Article VII of
the Mortgage Loan Agreement and to perform and comply with all the terms and provisions relating thereto. Borrower grants to
Lender a first-priority perfected security interest in Borrower's interest in each of the Mortgage Loan Reserve Funds, if any, subject to the prior rights of Mortgage Lender, and any and all monies
now or hereafter deposited in each Mortgage Loan Reserve Fund as additional security for payment of the Debt to the extent Borrower has an interest in same. Subject to the qualifications regarding
Mortgage Lender's interest in the Mortgage Loan Reserve Funds, if any, until expended or applied in accordance with the
Mortgage Loan Documents or the Loan Documents, Borrower's interest in the Mortgage Loan Reserve Funds, if any, shall constitute additional security for the Debt and, during the continuance of an Event
of Default, Lender may, in addition to any and all other remedies available to Lender but subject to all prior rights of Mortgage Lender with respect thereto, apply any sums then present in any or all
of the Mortgage Loan Reserve Funds to the payment of the Debt in any order in its sole discretion. 

        (b)   Borrower
shall cause Senior Mezzanine Borrower to deposit and maintain each of the Senior Mezzanine Loan Reserve Funds as more particularly set forth in  Article VII of each Senior Mezzanine Loan Agreement
and to perform and comply with all the terms and provisions relating thereto. Borrower grants
to Lender a first-priority perfected security interest in Borrower's interest in each of the Senior Mezzanine Loan Reserve Funds, if any, subject to the prior rights of Senior Mezzanine Lender, and
any and all monies now or hereafter deposited in each Senior Mezzanine Loan Reserve Fund as additional security for payment of the Debt to the extent Borrower has an interest in same. Subject to the
qualifications regarding Senior Mezzanine Lender's interest in the Senior Mezzanine Loan Reserve Funds, if any, until expended or applied in accordance with the Senior Mezzanine Loan Documents or the
Loan Documents, Borrower's interest in the Senior Mezzanine Loan Reserve Funds, if any, shall constitute additional security for the Debt and, during the continuance of an Event of 

73

 

Default,
Lender may, in addition to any and all other remedies available to Lender, but subject to all prior rights of Senior Mezzanine Lender, apply any sums then present in any or all of the Senior
Mezzanine Loan Reserve Funds to the payment of the Debt in any order in its sole discretion. 

        5.1.29.    Notices.    Borrower shall give notice to Lender as
follows: 

        (a)   of
any event of default (taking into account all applicable notice, grace and cure periods) under any Contractual Obligation of Borrower, or, to the knowledge of
Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Principal or Guarantor that could reasonably be expected to have a Material Adverse Effect on Borrower, Senior Mezzanine
Borrower, Mortgage Borrower, Maryland Owner, the ability of Borrower to perform under the Loan Documents, the ability of Senior Mezzanine Borrower to perform under the Senior Mezzanine Loan Documents,
the ability of Mortgage Borrower and Maryland Owner to perform under the Mortgage Loan Documents, the rights and remedies of Lender under the Loan Documents, the rights and remedies of Senior
Mezzanine Borrower under the Senior Mezzanine Loan Documents or the rights and remedies of Mortgage Borrower and Maryland Owner under the Mortgage Loan Documents; 

        (b)   of
any Senior Mezzanine Loan Event of Default or any Mortgage Loan Event of Default; 

        (c)   of
any requests (and provide Lender any documentation with respect to such request) by Mortgage Borrower for disbursements of (or increases in) any of the Mortgage
Reserves or of a release of Net Proceeds; and 

        (d)   of
any notice sent by or to Mortgage Borrower or Maryland Owner under the Mortgage Cash Management Agreement, including, without limitation, each disbursement
instruction. 

        5.1.30.    Special Distributions.    On each date on which amounts are
required to be disbursed to the Seventh Mezzanine Deposit Account pursuant to the terms of the Cash Management Agreement or are required to be paid to Lender under any of the Loan Documents, Borrower
shall exercise its rights under the Sixth Mezzanine Borrower Company Agreement to cause Sixth Mezzanine Borrower to make to Borrower a distribution in an aggregate amount such that Lender shall
receive the amount required to be disbursed to the Seventh Mezzanine Deposit Account or otherwise paid to Lender on such date; provided, such
distribution does not violate the provisions of the Mortgage Loan Agreement. 

        5.1.31.    Curing.    Lender shall have the right, but shall not have
the obligation, to exercise Borrower's rights, if any, under the Sixth Mezzanine Borrower Company Agreement (a) after prior notice, to cure an Event of Default under the Sixth Mezzanine Loan
Agreement and (b) to satisfy any Liens, claims or judgments against the Property (except for Liens permitted by the Mortgage Loan Documents) or any Senior Mezzanine Collateral, in the case of
either (a) or (b) unless Borrower, Senior Mezzanine Borrower or Mortgage Borrower shall be diligently pursuing remedies to cure to Lender's reasonable satisfaction. Borrower shall
reimburse Lender on demand for any and all costs paid by Lender in connection with curing any such Senior Mezzanine Loan Event of Default or Mortgage Loan Event of Default or satisfying any such
Liens, claims or judgments against any of the Senior Mezzanine Collateral or the Property. 

        5.1.32.    Mortgage Borrower Covenants.    Borrower shall cause
Mortgage Borrower to comply with all obligations with which Mortgage Borrower has covenanted to comply under the Mortgage Loan Agreement and all other Mortgage Loan Documents (including, without
limitation, those certain affirmative and negative covenants set forth in Article V of the Mortgage Loan Agreement, regardless of whether the Mortgage Loan has been repaid and satisfied in full
or otherwise terminated) unless otherwise consented to in writing by Lender; provided, that in no event shall a breach of this  Section 5.1.32 provide
Lender an independent right to declare an Event of Default hereunder prior to the time when Mortgage Lender would have the
right to declare a Mortgage Loan Event of Default with regard to the breach or default under the Mortgage Loan Agreement which gave rise to such non-compliance under this  Section 5.1.32.

74

 

        5.1.33.    Unlicensed Facilities.    In the event that (A)(i) any
Health Care License reasonably necessary for the operation of the Facility in question shall not be issued to the Operator that is the tenant under the Operating Lease relating to such Facility, or
(ii) any Health Care License referred to in clause (i) above shall be terminated or revoked or otherwise become ineffective pursuant to a final judgment or determination of any
administrative or judicial reconsideration, appeal, challenge or other proceeding relating to the initial issuance of the applicable Health Care License, and (B) as a result thereof, the
applicable Facility shall be closed or placed in a receivership or trusteeship or other similar mechanism (which is not subject to appeal) or on account thereof the applicable Operator is permanently
prevented from receiving payments from patients, residents, any third party payor, Medicare or Medicaid with respect to such Facility, then Borrower shall, within ninety (90) days after the
occurrence of the foregoing, make a prepayment of the Loan in an amount equal to the Allocated Loan Amount for such Individual Property (the "Unlicensed Facility Release
Amount"), cause Mortgage Borrower and Maryland Owner to obtain the release of such Individual Property from the Lien of the Mortgage thereon in accordance with
Section 2.6 of the Mortgage Loan Agreement (each such release, an "Unlicensed Facility Release") and comply with the applicable provisions of  Section 2.6 hereof. 

        5.1.34.    Supplemental Health Care Opinions.    Borrower shall, by no
later than January 31, 2008, (i) deliver to Lender, with respect to each State in which an Individual Property is located, a legal opinion (the "Required
Opinion") in form and substance and rendered by counsel reasonably acceptable to Lender, opining that the execution and delivery by HCR Manor Care Services, Inc.
("HMS"), and each Operator operating a Facility in such State of the Corporate Services Agreement, and the performance by HMS and each such Operator
thereunder does not violate any Health Care Requirements, or (ii) comply with the provisions of the second sentence of this  Section 5.1.34. In the event that Borrower shall fail not deliver to
Lender any of such Required Opinion by January 31, 2008, then
Borrower shall promptly cause to be amended such Corporate Services Agreement (with respect to each applicable State for which Lender has not received the Required Opinion) to provide that the
compensation thereunder is not based upon a percentage of revenue, net revenue, earnings or similar compensation structure, but based upon a fixed dollar amount which is fair and reasonable pursuant
to Health Care Requirements. If, subsequent to January 31, 2008, Borrower shall deliver a Required Opinion which was not previously delivered with respect to a State, then Borrower may cause
Mortgage Borrower and Maryland Owner to amend the Corporate Services Agreement to provide for such compensation which is permissible pursuant to such Required Opinion. 

        5.1.35.    Senior Mezzanine Borrower Covenants.    Borrower shall
cause Senior Mezzanine Borrower to comply with all obligations with which Senior Mezzanine Borrower has covenanted to comply under the applicable Senior Mezzanine Loan Agreement and all other
applicable Senior Mezzanine Loan Documents (including, without limitation, those certain affirmative and negative covenants set forth in Article V of the applicable Senior Mezzanine Loan
Agreement, regardless of whether such Senior Mezzanine Loan has been repaid and satisfied in full or otherwise terminated) unless otherwise consented to in writing by Lender;  provided, that in no event
shall a breach of this Section 5.1.35 provide Lender an independent
right to declare an Event of Default hereunder prior to the time when Senior Mezzanine Lender would have the right to declare a Senior Mezzanine Loan Event of Default with regard to the breach or
default under the applicable Senior Mezzanine Loan Agreement which gave rise to such non-compliance under this Section 5.1.35. 

        Section 5.2.    Negative Covenants.    Borrower covenants and
agrees with Lender that it will not do, directly or indirectly, any of the following: 

        5.2.1.    Operation of Properties.    (a) Borrower shall not,
without Lender's prior consent: (i) permit to be surrendered, terminated or canceled the Master Lease or, unless in connection with a Permitted Release, Unlicensed Facility Release, Affected
Property Release or Limited Cure Release of an Individual Property in accordance with Section 2.6, 5.1.28, 6.4(d) or 8.1(c) of the Mortgage Loan 

75

 

Agreement
and Section 2.6, 5.1.33 or 8.1(c) of this Agreement, or the substitution of an Individual Property in accordance with
Section 2.5 of the Mortgage Loan Agreement and Section 2.5 of this Agreement, any of the Operating Leases; (ii) reduce or consent to the reduction of (or permit the reduction or
the consent to the reduction) of the term of the Master Lease or any of the Operating Leases; (ii) permit the reduction or the consent to the reduction of the term of the Master Lease or any of
the Operating Leases; (iii) permit to be decreased or the consent to the decrease of the amount of any rent or other charges payable under the Master Lease or, unless in connection with a
Permitted Release, Unlicensed Facility Release, Affected Property Release or Limited Cure Release of an Individual Property in accordance with Section 2.6, 5.1.28, 6.4(d) or 8.1(c) of the
Mortgage Loan Agreement and Section 2.6, 5.1.33 or 8.1(c) of this Agreement, or the substitution of an Individual Property in accordance with
Section 2.5 of the Mortgage Loan Agreement and Section 2.5 of this Agreement, any of the Operating Leases; (iv) permit other than
pursuant to the Corporate Loan, any Master Tenant or, Operator to, further Transfer, convey, assign, sell, mortgage, encumber, pledge, hypothecate, grant a security interest in, grant an option or
options with respect to, or otherwise dispose of (directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, whether or not for consideration) the Security Agreement (as
defined in the Collateral Assignment of Security Agreement (as defined in the Mortgage Loan Agreement)) or the Collateral (as defined in the Collateral Assignment of Security Agreement (as defined in
the Mortgage Loan Agreement)), or (v) otherwise permit to be modified, changed, supplemented, altered, amended, waived or released any of the material rights and remedies of Mortgage Borrower,
Maryland Owner, Master Tenant or any Operator under any of the Leases (other than Non-Material Leases) other than any amendment of the Master Lease to release an Individual Property
therefrom on account of a Permitted Release, Unlicensed Facility Release, Affected Property Release or Limited Cure Release of an Individual Property in accordance with Section 2.6, 5.1.28,
6.4(d) or 8.1(c) of the Mortgage Loan Agreement and Section 2.6, 5.1.33 or 8.1(c) of this Agreement
(provided that Lender shall not unreasonably withhold its consent to any modification, change, supplement, alteration, amendment, waiver or release of
the Operating Lease as may be reasonably necessary to comply with the requirements of this Agreement or any other Loan Document, Mortgage Loan Document or any Health Care Requirements). 

        (b)   Borrower
shall not permit to be entered into any agreement for the management of the Properties (or any portion thereof) without Lender's prior written consent (which
consent of Lender shall not be unreasonably withheld). 

        (c)   During
the continuance of an Event of Default, Borrower shall not exercise any rights, make any decisions, grant any approvals or otherwise take any action under the
Master Lease or any Operating Lease or any management agreement without, in each instance, the prior written consent of Lender, which consent may be withheld in Lender's sole discretion. 

        (d)   Borrower
shall not permit South Carolina Mortgage Borrower to, without Lender's prior consent: (i) surrender, terminate or cancel (or permit to be surrendered,
terminated or canceled) any South Carolina Management Agreement; (ii) reduce or consent to the reduction of (or permit the reduction or the consent to the reduction of) the term of any South
Carolina Management Agreement; (iii) decrease or consent to any decrease (or permit to be decreased or the consent to the decrease) of the amount of any management fees or other charges payable
under any South Carolina Management Agreement; (iv) further convey, assign, sell, encumber, pledge, hypothecate, grant a security interest in, or otherwise transfer or dispose of (directly or
indirectly, voluntarily or involuntarily, by operation of law or otherwise, whether or not for consideration) its interest under any South Carolina Management Agreement or any portion thereof; or
(v) otherwise modify, change, supplement, alter or amend, or waive or release (or permit to be modified, changed, supplemented, altered, amended, waived or released) in any material respect any
of the rights and remedies of Master Tenant, or any South Carolina Operator, under any South Carolina Management Agreement (provided that Lender shall
not unreasonably withhold its consent to any modification, change, supplement, alteration, amendment, 

76

 

waiver
or release of any South Carolina Management Agreement as may be reasonably necessary to comply with the requirements of this Agreement or any other Loan Document or any Health Care
Requirements). 

        5.2.2.    Liens.    Borrower shall not cause or permit any Senior
Mezzanine Borrower, Mortgage Borrower or Maryland Owner to create, incur, assume or suffer to exist any Lien on any portion of any Individual Property, any of the Senior Mezzanine Collateral or any of
the Collateral or permit any such action to be taken, except: 

        (a)   Permitted
Encumbrances; 

        (b)   Liens
created by or permitted pursuant to the Loan Documents, the Senior Mezzanine Loan Documents or the Mortgage Loan Documents; 

        (c)   Liens
for Taxes or Other Charges not yet due and payable; and 

        (d)   Solely
as relates to the Personal Property, the Corporate Loan. 

        5.2.3.    Dissolution.    Borrower shall not, nor shall it permit
Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Master Tenant or Operator to, (a) engage in any dissolution, liquidation or consolidation or merger with or into any other Person,
(b) engage in any business activity not related to (i) in the case of Borrower, ownership of the Collateral, (ii) in the case of Senior Mezzanine Borrower, ownership of the Senior
Mezzanine Collateral, (iii) in the case of Mortgage Borrower or Maryland Owner, the ownership and operation of the Properties and (iv) in the case of Master Tenant and
Operator, the leasing and operation of the Properties and guaranties of obligations under the Corporate Loan, (c) Transfer, lease or sell, in one transaction or any combination of transactions,
its assets or all or substantially all of its properties or assets (except to the extent expressly permitted by the Loan Documents), (d) modify, amend, waive or terminate its organizational
documents in any material respect or its qualification and good standing in any jurisdiction or (e) cause or permit the Principal to (i) dissolve, wind up or liquidate or take any
action, or omit to take an action, as a result of which the Principal would be dissolved, wound up or liquidated in whole or in part, or (ii) amend, modify, waive or terminate the certificate
of formation of the Principal in any material respect, in each case, without obtaining the prior consent of Lender. 

        5.2.4.    Change in Business.    Borrower shall not permit, allow or
otherwise cause Mortgage Borrower (other than Maryland Borrower) and Maryland Owner to enter into any line of business other than the ownership and operation of the Properties, or make any material
change in the scope or nature of its business or activities incidental thereto or undertake or participate in activities other than the continuance of its present business consistent with past
practices. Borrower shall not permit, allow or otherwise cause Senior Mezzanine Borrower to enter into any line of business other than the ownership and operation of the Senior Mezzanine Collateral,
or make any change in the scope or nature of its business or activities incidental thereto or undertake or participate in activities other than the continuance of its present business. Borrower shall
not enter into any line of business other than the ownership of the Collateral, or make any material change in the scope or nature of its business or activities incidental thereto or undertake or
participate in activities other than the continuance of its present business. Borrower shall not permit Maryland Borrower to enter into any line of business other than its current line of business, or
make any material change in the scope or nature of its business or activities incidental thereto or undertake or participate in activities other than the continuance of its present business consistent
with past practices. 

        5.2.5.    Debt Cancellation.    Borrower shall not, nor shall it
permit Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Master Tenant or Operator to, cancel or otherwise forgive or release any claim or debt owed to it by any Person, except in the
ordinary course of its business in accordance with past practices. 

77

 

  
        5.2.6.    Zoning.    Borrower shall not initiate or consent to or
permit Mortgage Borrower and Maryland Owner to initiate or consent to any zoning reclassification of all or any portion of any Individual Property or seek any variance under any existing zoning
ordinance or use or permit the use of all or any portion of any Individual Property in any manner that could result in such use becoming a non-conforming use under any zoning ordinance or
any other applicable land use law, rule or regulation, without the prior written consent of Lender. 

        5.2.7.    Ground Lease.    (a) Borrower shall not permit any
Leasehold Borrower, without Lender's prior written consent, to fail to exercise any option or right to renew or extend the term of the applicable Ground Lease in accordance with the terms of such
Ground Lease, and shall give immediate notice to Lender thereof and shall execute, acknowledge, deliver and record any document requested by Lender to evidence the Lien of the Mortgage on such
extended or renewed lease term. 

        (b)   Borrower
shall not permit any Leasehold Borrower to waive, excuse, or in any way release or discharge the ground lessor under any Ground Lease of or from such ground
lessor's material obligations, covenants and/or conditions under the related Ground Lease without the prior written consent of Lender. 

        (c)   Borrower
shall not permit any Leasehold Borrower to, without Lender's prior written consent, surrender, terminate, forfeit, or suffer or permit the surrender,
termination or forfeiture of, or change, modify, amend, supplement or restate, any Ground Lease. Consent to one change, modification, amendment, supplement or restatement shall not be deemed to be a
waiver of the right to require consent to other, future or successive changes, modifications, amendments, supplements or restatements. Any acquisition of ground lessor's interest in any Ground Lease
by Mortgage Borrower, Maryland Owner or any Affiliate thereof shall be accomplished by Mortgage Borrower or Maryland Owner in such a manner so as to avoid a merger of the interests of ground lessor
and ground lessee in such Ground Lease, unless consent to such merger is granted by Lender. 

        (d)   Borrower
shall not permit any Leasehold Borrower to fail to pay any rent, additional rent or other charge payable under any Ground Lease as and when such rent or other
charge is due (unless waived in writing by the ground lessor under such Ground Lease). 

        (e)   Borrower
shall not permit to occur any event of default (beyond any applicable notice, grace or cure periods) by any Leasehold Borrower, as tenant under the related
Ground Lease, in the observance or performance of any term, covenant or condition of such Ground Lease on the part of such Leasehold Borrower, to be observed or performed (unless waived in writing by
the ground lessor under such Ground Lease). 

        5.2.8.    Principal Place of Business and Organization.    Borrower
shall not (nor shall Borrower permit Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Master Tenant or any Operator) to change its principal place of business (or such other location
where its books and records are located) set forth on Schedule 4.1.28, without, in each instance, first giving Lender ten (10) days' prior
notice. Borrower shall not (nor shall Borrower permit Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Master Tenant or any Operator) to change the place of its organization as set forth
on Schedule 4.1.28, without, in each instance, the consent of Lender (which consent shall not be unreasonably withheld). Upon Lender's request,
Borrower shall deliver additional financing statements, security agreements and other instruments which may be necessary to effectively evidence or perfect Lender's security interest in the Collateral
as a result of any such change of place of organization. 

        5.2.9.    ERISA.    (a) Borrower shall not engage in any
transaction which would cause any obligation, or action taken or to be taken, hereunder (or the exercise by Lender of any of its rights under the Note, this Agreement or the other Loan Documents) to
be a non-exempt (under a statutory or administrative class exemption) prohibited transaction under ERISA. 

78

 

        (b)   Borrower
further covenants and agrees to deliver to Lender such certifications or other evidence from time to time throughout the term of the Loan, as reasonably
requested by Lender, that (i) Borrower is not an "employee benefit plan" as defined in Section 3(3) of ERISA that is subject to Title I of ERISA, a "plan" within the meaning of
Section 4975 of the Code that is subject to Section 4975 of the Code, or a "governmental plan" within the meaning of Section 3(32) of ERISA; (ii) the transactions by or
with Borrower contemplated by this Agreement are not subject to any state statute similar to the provisions of Section 406 of ERISA or Section 4975 of the Code; and
(iii) Borrower's assets constitute "plan assets" of any plan subject to Section 406 of ERISA or Section 4975 of the Code. 

        5.2.10.    Transfers.    (a) Borrower acknowledges that Lender
has examined and relied on the experience of Borrower and that of its members and principals and (if Borrower is a trust) beneficial owners in owning the Collateral in agreeing to make the Loan, and
will continue to rely on Borrower's ownership of the Collateral as a means of maintaining the value of the Collateral as security for repayment of the Debt and the performance of the obligations
contained in the Loan Documents. Borrower acknowledges that Lender has a valid interest in maintaining the value of the Collateral so as to ensure that, should Borrower default in the repayment of the
Debt or the performance of the obligations contained in the Loan Documents, Lender can recover the Debt by a sale of the Collateral. 

        (b)   Without
the prior consent of Lender and except to the extent otherwise set forth in this Section 5.2.10 or in
connection with the release of a Release Property subject to and in accordance with, as applicable, Section 2.6 or  Section 8.1(c) hereof (and, as
applicable, Section 2.6, 6.4(d) or 8.1(c) of the Mortgage Loan Agreement), Borrower shall not, nor shall it
permit any Restricted Party to, (i) sell, convey, mortgage, grant, bargain, encumber, pledge, assign, sublet, grant a security interest in, grant options with respect to, or otherwise transfer,
exchange or dispose of (directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) any of the Collateral, any of the
Senior Mezzanine Collateral, any Individual Property or any part thereof or any legal or beneficial interest therein or, except as may be expressly permitted under and in accordance with  Section 5.1.22 hereof, any Lease of any part thereof or any legal or beneficial interest therein, (ii) permit a Sale or, other than as
contemplated by the Loan, the Other Mezzanine Loans or the Corporate Loan, a Pledge of an interest in any Restricted Party or (iii) except for Permitted Encumbrances, mortgage, hypothecate or
otherwise encumber the leasehold interest in any Operating Lease (collectively, a "Transfer"), other than pursuant to Leases of space in the
Improvements and Non-Material Leases to tenants in accordance with the provisions of Section 5.1.22. 

        (c)   A
Transfer shall include, but not be limited to, (i) an installment sales agreement wherein Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland
Owner agrees to sell the Collateral, any of the Senior Mezzanine Collateral or an Individual Property, as applicable, or any part thereof, for a price to be paid in installments; (ii) an
agreement by Mortgage Borrower or Maryland Owner leasing all or a substantial part of an Individual Property for other than actual occupancy by a space tenant thereunder or a sale, assignment or other
transfer of, or the grant of a security interest in, Mortgage Borrower's or Maryland Owner's right, title and interest in and to any Leases or any Rents; (iii) if a Restricted Party is a
corporation, any merger, consolidation or Sale or Pledge of such corporation's stock or the creation or issuance of new stock; (iv) if a Restricted Party is a limited or general partnership or
joint venture, any merger or consolidation or the change, removal, resignation or addition of a general partner or the Sale or Pledge of the partnership interest of any general partner or any profits
or proceeds relating to such partnership interest, or the Sale or Pledge of limited partnership interests or any profits or proceeds relating to such limited partnership interest or the creation or
issuance of new limited partnership interests; (v) if a Restricted Party is a limited liability company, any merger or consolidation or the change, removal, resignation or addition of a
managing member or non-member manager (or if no managing member, any member) or the Sale or Pledge of the membership interest of a managing member (or if no managing member, any member) or
any 

79

 

profits
or proceeds relating to such membership interest, or the Sale or Pledge of non-managing membership interests or the creation or issuance of new non-managing membership
interests; or (vi) if a Restricted Party is a trust or nominee trust, any merger, consolidation or the Sale or Pledge of the legal or beneficial interest in a Restricted Party or the creation
or issuance of new legal or beneficial interests. 

        (d)   Notwithstanding
the provisions of this Section 5.2.10, the following Transfers shall not be deemed to be a
Transfer; provided that any such Transfer is a complete conveyance of the related interest and not a Pledge (other than as expressly set forth below),
encumbrance or other Transfer of such interest 

          (i)  the
Transfer, in one or a series of transactions, of not more than forty-nine percent (49%) of the direct or indirect interests in a Restricted Party;  provided, however, that (A) no such Transfers shall result in the change of control in the
Restricted Party, and (B) as a condition to each such Transfer, (I) Lender shall receive not less than thirty (30) days' prior notice of such proposed Transfer and (II) at
all times, Carlyle and/or one or more Affiliates of Carlyle shall continue to own, directly or indirectly, at least a fifty-one percent (51%) interest in Borrower, Senior Mezzanine
Borrower, Mortgage Borrower, Maryland Owner, Master Tenant and Operator; 

         (ii)  the
Pledge of any direct or indirect interests in any Operator, Master Tenant or any direct or indirect equity holder in the Operator and/or in HCR
Properties, LLC in favor of Corporate Loan Lender as security for the Corporate Loan as same may have been refinanced subject to the provisions of  Section 5.2.12, and any Transfer which occurs
as the result of the exercise of remedies by Corporate Loan Lender in accordance with the Corporate
Loan or the holders of any indebtedness used to refinance the Corporate Loan, subject to the provisions of Section 5.2.12;  provided, however, that it shall be a condition to a Transfer to any Person pursuant to a foreclosure on
such Pledge or other sale or assignment thereof that (A) Mortgage Borrower and Maryland Owner shall have obtained and delivered to Lender prior written confirmation from the applicable Rating
Agencies that such Transfer shall not cause a downgrade, withdrawal or qualification of the ratings of any Securities or any class thereof issued upon the Securitization of the Mortgage Loan,
(B) no Event of Default shall then be continuing, (C) none of Lender, Senior Mezzanine Lender or Mortgage Lender shall have commenced an Enforcement Action under the Loan Documents, the
applicable Senior Mezzanine Loan Documents or the Mortgage Loan Documents, (D) no Bankruptcy Action shall have occurred with respect to Borrower, Senior Mezzanine Borrower, Mortgage Borrower or
Maryland Owner, (E) no event shall have occurred or would reasonably be expected to occur as a result thereof, which would be reasonably expected to have, or has, a Material Adverse Effect, and
(F) the new Operator shall be a Qualified Operator approved by Lender, which approval shall not be unreasonably withheld, conditioned or delayed; and 

        (iii)  any
Transfer which occurs as the result of the exercise of remedies by Lender or any Other Mezzanine Lender in accordance with the Loan or any Other Mezzanine Loan. 

        With
respect to each of the Transfers set forth in clauses (i) through (iii) above, (A) if after giving effect to any
such Transfer and all prior Transfers, more than forty-nine percent (49%) in the aggregate of the direct or indirect interests of Borrower are owned by any Person and its Affiliates that
owned less than forty-nine percent (49%) of the direct or indirect interests in Borrower as of the Closing Date, it shall be an additional condition to such Transfer that Lender receives
an Additional Insolvency Opinion reasonably acceptable to Lender, (B) in the event that such Transfer renders an assumption in the True Lease Opinion untrue, it shall be an additional condition
to such Transfer that Lender receives an Additional True Lease Opinion regarding such Transfer reasonably acceptable to Lender, and (C) if a Securitization of the Mortgage Loan shall have
occurred, in the event that such Transfer (I) is of more than forty-nine percent (49%) in the aggregate of the direct or indirect interests in Borrower or (II) results in a
Person other than Carlyle controlling HCR Healthcare, LLC or any direct 

80

 

or
indirect subsidiary thereof, it shall be an additional condition to such Transfer that (1) Borrower shall have caused Mortgage Borrower and Maryland Owner to have obtained and delivered to
Lender prior written confirmation from the applicable Rating Agencies that such Transfer will not cause a downgrade, withdrawal or qualification of the then-current ratings of the
Securities or any class thereof, and shall have obtained each Designated Mezzanine Lender's consent thereto, which consent shall not be unreasonably withheld, and, (2) if one or more Operators
are replaced as a result of such Transfer, that each such replacement Operator shall be a Qualified Operator. 

        Notwithstanding
any provision hereof to the contrary, this Section 5.2.10 shall not prohibit or restrict (i) any Transfer of
any interest in Guarantor or any Transfer of any interests in or assets of any Affiliate of Guarantor (other than any direct or indirect subsidiary of HCR Properties, LLC or HCR
Healthcare, LLC), (ii) any Transfer of any equity interests in any Restricted Party (other than Borrower, Maryland Owner, Mezzanine Borrower, Master Tenant, or Operator), or
(iii) any merger or consolidation of any Restricted Party (other than Borrower, Maryland Owner, Mezzanine Borrower, Master Tenant or Operator), so long as, after giving effect to such Transfer,
merger or consolidation, (A) Carlyle and/or one or more Affiliates of Carlyle shall continue to have a Controlling Equity Interest in Guarantor, Manor Care, HCR Properties, LLC and HCR
Healthcare, LLC, and (B) 100% of the equity interests of each of HCR VII Properties, LLC, HCR II Healthcare, LLC, Borrower, Maryland Owner, Mezzanine Borrower, Principal,
Master Tenant and Operator are owned by HCR Properties, LLC or HCR Healthcare, LLC, and Guarantor controls Manor Care, HCR Properties, LLC and HCR Healthcare, LLC. For the
purposes of this paragraph, a "Controlling Equity Interest" in Guarantor or a subsidiary of Guarantor means (1) if the equity securities of neither Guarantor nor any direct or indirect parent
of Guarantor are traded on a national securities exchange, ownership, directly or indirectly, of at least fifty-one percent (51%) of the equity and voting interests of Guarantor (or such
direct or indirect parent) or such subsidiary, as applicable, and (2) if the equity securities of either Guarantor or any direct or indirect parent of Guarantor are traded on a national
securities exchange, ownership, directly or indirectly, of at least 30% of the equity and voting interests of Guarantor (or such direct or indirect parent) or such subsidiary, as applicable, and the
possession of the power to direct and cause the direction of the voting rights associated with such interests, provided that no Person (other than Carlyle or an Affiliate of Carlyle) then holds a
greater percentage of the equity or voting interests in Guarantor (or such direct or indirect parent) or such subsidiary, as applicable. For purposes of this paragraph "control" shall mean the direct
or indirect power to direct and cause the direction of the management and policies of a Person whether through ownership of voting securities, beneficial interest, by contract or otherwise. For the
avoidance of doubt, no prohibited Transfer of equity interests in any direct or indirect subsidiary of HCR Properties, LLC or HCR Healthcare, LLC shall be deemed to have occurred solely
by virtue of a Transfer that is otherwise
permitted hereunder of direct or indirect equity interests in HCR Properties, LLC or HCR Healthcare, LLC. 

        Nothing
contained herein shall be deemed to prohibit Corporate Loan Lender from syndicating or otherwise transferring its rights under the Corporate Loan. In addition, nothing contained
herein shall be deemed to prohibit additional borrowings or the refinancing of all or a portion of the Corporate Loan (without increasing the principal amount thereof other than as permitted under  Section 5.2.12); provided that, at Lender's request, Corporate Loan Lender, each Other Mezzanine
Lender, Mortgage Lender and Lender shall have entered into an intercreditor agreement with Lender in form and substance reasonably acceptable to Lender, Mortgage Lender and each Other Mezzanine Lender
prior to a Securitization, and, if a Securitization shall have occurred, acceptable to the Rating Agencies and reasonably acceptable to Mortgage Lender and each Designated Mezzanine Lender. 

        Notwithstanding
anything contained in this Section 5.2.10(d) to the contrary, a direct Transfer of any direct ownership interests
in any Senior Mezzanine Borrower, any Mortgage Borrower or Maryland Owner shall not be permitted. 

81

 

        (e)   No
consent to any assumption of the Loan shall occur on or before the Payment Date occurring in December 2008. Thereafter, Lender shall not unreasonably withhold its
consent to the one-time Transfer (provided that any such Transfer is a complete conveyance of the related interest and not a Pledge) of
(i) all of the Properties or (ii) one hundred percent (100%) of the ownership interests in each Borrower (in a single transaction);  provided that each of the following conditions are
satisfied: 

          (i)  (1)
such sale has been approved or deemed approved under the Mortgage Loan Documents and all conditions set forth in the Mortgage Loan Documents relating thereto have
been satisfied, without waiver or modification and (2) such sale has been approved or deemed approved under the Senior Mezzanine Loan Documents and all conditions set forth in the Senior
Mezzanine Loan Documents relating thereto have been satisfied, without waiver or modification, and in each case Lender shall have received evidence that all such conditions shall have been satisfied;  provided that such evidence shall in all cases consist of the identical evidence or documentation provided to Mortgage Lender or Senior Mezzanine Lender
in satisfaction of such conditions; 

         (ii)  no
Event of Default shall be continuing; 

        (iii)  the
proposed transferee(s) or grantee(s) ("Transferee(s)") shall be (A) a reputable Person of good character,
(B) either (I) a Qualified Transferee or (II) another creditworthy Person, with sufficient financial worth considering the obligations assumed and undertaken, and in either such
case as evidenced by financial statements and other information reasonably requested by Lender, and (C) shall have an organizational structure reasonably acceptable to Lender; 

        (iv)  the
Transferee(s) shall have sufficient experience in the ownership and management of properties similar to the Properties, and such Transferee(s)' operating tenant or
property manager, as the case may be, shall be a Qualified Operator unless the Qualified Operator is otherwise approved pursuant to this  Section 5.2.10(e), and in each case, Lender shall be
provided with reasonable evidence thereof (and Lender reserves the right to approve the
Transferee(s) without approving the substitution of the operating tenant or property manager); provided that, so long as the Master Lease and Operating
Lease is in force and effect and the current Master Tenant and Operator shall continue to be the tenant thereunder, the condition with respect to the Master Tenant and Operator set forth in this  clause (iii)
 shall be deemed to have been satisfied in all respects; 

         (v)  the
Transferee(s) shall have, if it (they) shall be the grantees of the real property portion of the Properties, executed and delivered to Lender an assumption agreement
in form and substance acceptable to Lender (which agreement shall contain in substance the provisions of Section 9.3 hereof) evidencing such
Transferee's agreement to abide by and be bound by the terms of the Note, this Agreement and the other Loan Documents after the date of the assumption, together with such title insurance endorsements
as may be requested by Lender; 

        (vi)  the
Transferee (i) shall assume (1)(A) the Mortgage Loan and the Mortgage Loan Documents and (B) all the agreements of Mortgage Borrower and Maryland
Owner under the Mortgage Loan Documents and (2)(A) each Senior Mezzanine Loan and the Senior Mezzanine Loan Documents and (B) all the agreements of Senior Mezzanine Borrower under the Senior
Mezzanine Loan Documents, (ii) shall be a bankruptcy-remote Single Purpose Entity, and (iii) shall otherwise have a legal and ownership structure that is (A) substantially the
same as Mortgage Borrower and Maryland Owner or (B) at least as favorable to Lender, as determined by Lender in its reasonable discretion, as the legal and ownership structure of Mortgage
Borrower and Maryland Owner 

       (vii)  without
limiting any other provisions of this Section 5.2.10, all of the entities which own interests in the
Transferee similar to the interests in Mortgage Borrower and Maryland Owner 

82

 

owned
by Borrower (the "Mezzanine Entities") (i) shall assume (a) each Senior Mezzanine Loan and all of the agreements of Senior Mezzanine
Borrower under the Senior Mezzanine Loan Documents and (b) the Loan and all the agreements of Borrower under the Loan Documents (and without limiting the foregoing, all of the ownership
interests in the Transferee, all payments thereon and all proceeds thereof shall be pledged to Lender on terms no less favorable than the pledge of the Collateral under the Pledge Agreement),
(ii) shall each be a bankruptcy-remote Single Purpose Entity, (iii) shall otherwise have a legal and ownership structure that is (A) substantially the same as Borrower or
(B) at least as favorable to Lender, as determined by Lender in its reasonable discretion, as the legal and ownership structure of Borrower. Borrower and each Mezzanine Entity shall enter into
a pledge agreement and pledge its equity ownership in the entity directly owned by it and deliver to Lender a UCC Title Insurance Policy with respect thereto; 

      (viii)  Borrower
shall have delivered to Lender an Additional Insolvency Opinion and Additional True Lease Opinion reflecting the proposed Transfer reasonably satisfactory in
form and substance to Lender; 

        (ix)  Transferee(s)
shall comply with the representations and covenants set forth in Section 5.2.9 hereof; 

         (x)  There
shall be no then-existing breach of any applicable REIT Representations and Covenants; 

        (xi)  Lender
shall have received (a) an assumption fee equal to 0.25% of the principal amount of the Debt on the date of such assumption and (b) the payment of,
or reimbursement for, all costs and expenses incurred by Lender in connection with such assumption (including the cost of any third party reports and reasonable legal fees and disbursements); 

       (xii)  prior
to any release of the Guarantor, a substitute Person reasonably acceptable to each Designated Mezzanine Lender shall have executed and delivered a replacement
guaranty and environmental indemnity covering the period from and after the effective date of the assumption and substantially in the form of the Guaranty and the Environmental Indemnity, whereupon
Guarantor shall be released from its obligations under the Guaranty and Environmental Indemnity other than with respect to matters which first occurred or matters or events which first arose prior to
the effective date of the assumption; 

      (xiii)  Borrower
shall have delivered to Lender evidence reasonably satisfactory to Lender of any required approval or consent of any Health Care Authorities that have direct
or indirect authority or
oversight over Borrower, the Properties, or the operations conducted on the Properties to the change in the owner and operator of the Properties and each Facility operated thereon; 

      (xiv)  Neither
the Transferee nor any Affiliate of the Transferee, shall have, within the seven (7) years immediately preceding such Transfer, (A) been subject
to any material, uncured event of default in connection with a loan financing which resulted in any material indebtedness held by Lender or any other secondary market or institutional lender of
similar size and with similar operations as Lender or (B) the subject of a proceeding under the Bankruptcy Code; and none of the principals which Control or own a material direct or indirect
equity interest in the Transferee shall have ever been convicted of, or plead guilty to or no contest with respect to, a felony involving moral turpitude. 

        (f)    Lender
shall not be required to demonstrate any actual impairment of its security or any increased risk of default hereunder in order to declare the Debt immediately due
and payable upon a Transfer without Lender's consent. This provision shall apply to every Transfer regardless of whether voluntary or not, or whether or not Lender has consented to any previous
Transfer. 

83

 

        5.2.11.    Certain Agreements Relating to the Merger.    Borrower
shall not, without the prior written consent of Lender (which consent shall not be unreasonably withheld), permit the modification, amendment, supplementing or restatement of the Reorganization
Documents, except to the extent the same would not be reasonably expected to have, and does not have, a Material Adverse Effect. 

        5.2.12.    Certain Financial Covenants.    Borrower shall not, and
shall not permit Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Operator, Master Tenant or Guarantor to cause or permit the Corporate Loan to be modified, amended or restated to be
increased to, or to be refinanced in an amount greater than, the sum of $900,000,000 plus an amount equal to the additional indebtedness for borrowed money which the borrower under the Corporate Loan
is permitted to incur under the Corporate Loan Documents as in effect on the date hereof, including, without limitation, incremental amounts incurred under Section 2.27 of the Corporate Loan
Agreement. 

        5.2.13.    Limitations on Distributions.    Following the occurrence
and during the occurrence of an Event of Default, Borrower shall not make any distributions to its partners or members, as applicable. 

        5.2.14.    Other Limitations.    Prior to the payment in full of the
Debt, neither Borrower nor any of its Affiliates shall, without the prior written consent of Lender (which may be furnished or withheld in its reasonable discretion), give its consent or approval to
any of the following actions or items: 

        (a)   except
as permitted under the Loan Documents, the Senior Mezzanine Loan Documents or the Mortgage Loan Documents or otherwise permitted by Lender herein, (i) any
refinance of the Mortgage Loan or any Senior Mezzanine Loan, (ii) any prepayment in full or in part of the Mortgage Loan or any Senior Mezzanine Loan, (iii) any Transfer of any or all of
the Property or any Senior Mezzanine Collateral or any portion thereof, or (iv) any action in connection with or in furtherance of the foregoing; 

        (b)   any
material modification, amendment, consolidation, spread, restatement, waiver or termination of any of the Mortgage Loan Documents or the Senior Mezzanine Loan
Documents or the Master Lease not otherwise permitted hereunder, under the Senior Mezzanine Loan Documents or under the Mortgage Loan Documents; 

        (c)   except
as permitted under the Loan Documents, the Senior Mezzanine Loan Documents or the Mortgage Loan Documents or otherwise permitted by Lender herein, creating,
incurring, assuming, or suffering to exist any additional Liens on any portion of the Property, except for Permitted Encumbrances; 

        (d)   the
distribution to the partners, members or shareholders of any Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner of property other than cash; and 

        (e)   except
as expressly permitted by the Mortgage Loan Documents, any determination to restore any Individual Property after a Casualty or Condemnation. 

        5.2.15.    Contractual Obligations.    Other than the Loan Documents
and other than as permitted under the definition of Special Purpose Entity (Borrower), the Borrower Company Agreement, the Sixth Mezzanine Borrower Company Agreement (and the initial equity interests
in Borrower issued pursuant thereto), neither Borrower nor any of its assets shall be subject to any Contractual Obligations, and Borrower shall not enter into any agreement, instrument or undertaking
by which it or its assets are bound, except in each case for such liabilities, not material in the aggregate, that are incidental to its activities as a regular member, of any Senior Mezzanine
Borrower, Mortgage Borrower or Maryland Owner. 

        5.2.16.    Limitation on Securities Issuances.    Borrower shall not,
and shall not permit any of Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Operator or Master Tenant to, issue any membership interests or other securities other than those that have
been issued as of the date hereof. 

84

 

        5.2.17.    Refinancing.    Borrower shall not consent to or permit a
refinancing of the Mortgage Loan or any Other Mezzanine Loan (other than in connection with the simultaneous refinancing of the Loan, the Mortgage Loan and each of the Other Mezzanine Loans in their
entirety and in accordance with the terms and provisions of the Loan Documents, the Mortgage Loan Documents and the Other Mezzanine Loan Documents, respectively), unless it obtains the prior consent
of Lender, which consent may be given or withheld by Lender in its sole discretion. 

        VI.    INSURANCE; CASUALTY; CONDEMNATION    

        Section 6.1.    Insurance.    (a) Borrower shall cause Mortgage
Borrower to maintain at all times during the term of the Loan the Policies required under Section 6.1 of the Mortgage Loan Agreement, including,
without limitation, meeting all insurer requirements thereunder. In addition, Borrower shall cause Lender to be named as an additional insured under each of the Policies described in
Sections 6.1(a)(ii), (ix) and (xii) of the Mortgage Loan Agreement. In addition, Borrower shall cause Lender to be named as a named insured together with Mortgage Lender, as their
interest may appear, under the Policies required under Sections 6.1(a)(i), (iv), (v), (vii) and (x) of the Mortgage Loan Agreement. Borrower shall also cause all insurance
policies required under this Section 6.1 to provide for at least thirty (30) days prior notice to Lender in the event of policy
cancellation or material changes. Borrower shall provide Lender with evidence of all such insurance required hereunder on or before the date on which Mortgage Borrower is required to provide such
evidence to Mortgage Lender. 

        (b)   If
at any time Lender is not in receipt of written evidence that all insurance required hereunder is in full force and effect, Lender shall have the right, after notice
to Borrower, Mortgage Borrower and Maryland Owner to take such action as Lender deems necessary to protect its interest in the Properties, including the obtaining of such insurance coverage as Lender
in its reasonable discretion deems appropriate. All premiums incurred by Lender in connection with such action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to
Lender within ten (10) days of demand and shall bear interest at the Default Rate. 

        Section 6.2.    Casualty.    If the Individual Property shall be
damaged or destroyed, in whole or in part, by fire or other casualty (a "Casualty"), Borrower shall cause (with respect to a Casualty with respect to
which the Net Proceeds would reasonably be expected to exceed $500,000) Mortgage Borrower and Maryland Owner to give reasonably prompt notice of such damage to Lender and shall, or shall cause
Mortgage Borrower and Maryland Owner to reasonably promptly commence and diligently prosecute the completion of the Restoration of the Individual Property as nearly as possible to the condition the
Individual Property was in immediately prior to such Casualty, with such alterations as may be reasonably approved by Lender and otherwise in accordance with Section 6.4 of the Mortgage Loan
Agreement; provided, however, in the event that Net Proceeds are not made available by Mortgage Lender
for restoration (A) Borrower and Mortgage Borrower and Maryland Owner shall not be required to repair or restore the Individual Property as set forth above,  provided that Borrower shall cause
Mortgage Borrower and Maryland Owner to take, at its own expense, such steps as may be reasonably required to put and
maintain the Improvements in a safe and secure condition; (B) Borrower or Mortgage Borrower and Maryland Owner may, at its or their own expense, make such alterations and repairs to the
Improvements as Borrower and Mortgage Borrower and Maryland Owner may desire to restore the Improvements to a functioning skilled nursing facility or assisted living facility in compliance with all
applicable material Legal Requirements and material Health Care Requirements; (C) Lender shall waive any defaults hereunder based on the physical condition of the Improvements unless and until
Borrower or Mortgage Borrower and Maryland Owner shall restore the same as set forth in the foregoing clause (B); and (D) Borrower shall permit Mortgage Borrower and Maryland Owner to
obtain a release of the Individual Property from the lien of the Mortgage subject to and in accordance with Section 2.6.1 hereof and
Section 2.6.1 of the Mortgage Loan Agreement. Borrower shall pay or cause Mortgage Borrower and Maryland Owner to pay, all costs of such Restoration whether or not such costs are covered by
insurance. Lender may after notice 

85

 

to
Borrower, but shall not be obligated to, make proof of loss if not made reasonably promptly by Borrower or Mortgage Borrower and Maryland Owner. In the event of a Casualty where the loss does not
exceed the Restoration Threshold, Mortgage Borrower and Maryland Owner may settle and adjust such claim; provided that (a) no Event of Default
has occurred and is continuing and (b) such adjustment is carried out in a commercially reasonable manner. In the event of a Casualty where the loss exceeds the Restoration Threshold (or if
below the Restoration Threshold, if such adjustment is not carried out in a commercially reasonable manner) or if an Event of Default then exists, Mortgage Borrower and Maryland Owner may settle and
adjust such claim only with the consent of Lender. In addition, Lender may participate in any such settlement or adjustment discussions with any insurance companies with respect to any Casualty in
which the loss exceeds the Restoration Threshold and Borrower shall deliver to Lender all instruments required by Lender to permit such participation. Notwithstanding anything contained herein to the
contrary, if, following a Casualty, in the event that Net Proceeds therefor are not made available by Mortgage Lender for restoration of the affected Individual Property, and Mortgage Borrower and
Maryland Owner have received a "Rejectable Offer", under and as defined in the Master Lease, from the Operator of the affected Individual Property, Mortgage Lender shall make such Net Proceeds
available to Mortgage Borrower and Maryland Owner (in the event that such Rejectable Offer is not accepted, but the applicable Individual Property is to be released from the Mortgage Loan and the
related Operating Lease is to be terminated), or, at Mortgage Borrower's and Maryland Owner's direction, to the applicable Operator (in the event that the Rejectable Offer is accepted and the affected
Individual Property is to be sold to the related Operator). 

        Section 6.3.    Condemnation.    Borrower shall reasonably promptly
give Lender notice of the commencement or of any threatened in writing proceeding for the Condemnation of any Individual Property and shall cause Mortgage Borrower and Maryland Owner to deliver to
Lender copies of any and all papers
served by any Governmental Authority in connection with such proceedings. Lender may participate in any such proceedings, and Borrower shall from time to time deliver to Lender all instruments
requested by it to permit such participation; provided, however,  that in the event of a Condemnation with
respect to an Individual Property where the amount of the taking does not exceed the Restoration Threshold,
Mortgage Borrower and Maryland Owner may settle and compromise such Condemnation without Lender's participation so long as (a) no Event of Default is continuing and (b) such settlement
is carried out in a commercially reasonable and timely manner. Borrower shall cause Mortgage Borrower and Maryland Owner, at its or their expense, to diligently prosecute any such proceedings, and
shall consult with Lender, its attorneys and experts, and cooperate with them in the carrying on or defense of any such proceedings. Notwithstanding any taking by any public or quasi-public authority
through Condemnation or otherwise (including any transfer made in lieu of or in anticipation of the exercise of such taking), Borrower shall continue to pay the Debt at the time and in the manner
provided for its payment in the Note and in the Loan Agreement and the Debt shall not be reduced until the Net Liquidation Proceeds After Debt Service have been actually received and applied by
Lender, after the deduction of expenses of collection, to the reduction or discharge of the Debt. Lender shall not be limited to the interest paid on the Award by the condemning authority but shall be
entitled to receive out of the Net Liquidation Proceeds After Debt Service at the rate or rates provided herein or in the Note. If any Individual Property or any portion thereof is taken by a
condemning authority, Borrower shall cause Mortgage Borrower and Mortgage Owner to reasonably promptly commence and diligently prosecute the Restoration of the applicable Individual Property and
otherwise comply with the provisions of Section 6.4 of the Mortgage Loan Agreement. 

        Section 6.4.    Restoration.    Borrower shall, or shall cause
Mortgage Borrower to, deliver to Lender all reports, plans, specifications, documents and other materials that are delivered to Mortgage Lender under Section 6.4 of the Mortgage Loan Agreement
in connection with the Restoration of the Property after a Casualty or Condemnation. 

86

 

        VII.    RESERVE FUNDS    

        Section 7.1.    Low DSCR Reserve Funds.    

        7.1.1.    Deposits.    During the continuance of a Trigger Period,
Lender shall have the right (i) to deposit all Low DSCR Interest Floor Reserve Funds into an account created for such purpose under the Cash Management Agreement (the
"Low DSCR Interest Floor Reserve Account"), and (ii) to deposit all Low DSCR General Reserve Funds into an account created for such purpose under
the Cash Management Agreement (the "Low DSCR General Reserve Account"), which Low DSCR Interest Floor Reserve Funds and Low DSCR General Reserve Funds
shall constitute additional collateral for the Debt. 

        7.1.2.    Disbursements of Low DSCR Reserve Funds.    Upon the
expiration of a Trigger Period, Lender shall disburse any funds remaining in the Low DSCR General Reserve Account to Borrower. Borrower shall use all Low DSCR Interest Floor Reserve Funds, if any, on
deposit in the Low DSCR Interest Floor Reserve Account solely to make distributions (through each intermediate parent) to Manor Care, solely for contribution by Manor Care to HCR
Healthcare, LLC to be used solely to fund the current obligations of HCR Healthcare, LLC under those certain interest rate hedge instruments sold by HCR Healthcare, LLC in the
aggregate notional amount of the Mortgage Loan and the Mezzanine Loans, with respect to a LIBOR floor in the amounts provided for under Section 3(c)(v) of the Cash Management Agreement. In
addition, provided that no Event of Default is then continuing, Lender shall, if so directed by Borrower, disburse Low DSCR General Reserve Funds to Borrower solely to pay the costs of Capital
Expenditures at the Properties in accordance with an Approved Quarterly CapEx Budget that are otherwise permitted under the Loan Documents. Any request for disbursement from the Low DSCR General
Reserve Account shall be accompanied by an Officer's Certificate with such supporting materials as shall be reasonably satisfactory to Lender to establish that Borrower is entitled to such
disbursement and certifying that such funds have been or will be applied solely to pay for Capital Expenditures pursuant to an Approved Quarterly CapEx Budget. 

        Section 7.2.    Tax and Insurance Reserve Funds.    

        7.2.1.    Deposits.    (a) On the Closing Date, Borrower shall
deposit with Lender the sum of $11,226,054.04, and thereafter on each Payment Date, Borrower shall pay or cause Master Tenant and Operator to pay to Lender (a) one-twelfth of the
Taxes that Lender estimates in its reasonable discretion based on the history of Taxes assessed against the applicable Individual Property (including for this purpose, with respect to each Individual
Property listed on Schedule 4.1.16, the entire tax lot of which such Individual Property is a part), will be payable during the next ensuing
twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and
(b) one-twelfth of the Insurance Premiums that Lender estimates in its reasonable discretion based on the history of Insurance Premiums for the relevant individual Property, will be
payable for the renewal of the coverage afforded by the Policies upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty
(30) days prior to the expiration of the Policies. Amounts so deposited in (a) and (b) above shall be referred to herein as the "Tax and Insurance Reserve Funds" and the account
in which such amounts are held shall be referred to herein as the "Tax and Insurance Reserve Account." Lender will apply the full extent of Tax and Insurance Reserve Funds to payments of Taxes and
Insurance Premiums required to be made by Borrower pursuant to Section 5.1.2 hereof and under the Mortgages. In making any payment relating to
the Tax and Insurance Reserve Funds, Lender may do so according to any bill, statement or estimate procured from the appropriate public office (with respect to Taxes) or insurer or agent (with respect
to Insurance Premiums), without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof. If the
amount of the Tax and Insurance Reserve Funds shall exceed the amounts due for Taxes and Insurance Premiums pursuant to Section 5.1.2 hereof,
Lender shall, in its sole discretion, either return 

87

 

any
excess to Borrower or credit such excess against future payments to be made to the Tax and Insurance Reserve Account hereunder. Any amount remaining in the Tax and Insurance Reserve Account after
the Debt has been paid in full shall be promptly returned to Borrower. In allocating such excess, Lender may deal with the Person shown on the records of Lender to be the owner of the Properties. If
at any time Lender reasonably determines based upon invoices for the current or previous Tax periods that the Tax and Insurance Reserve Funds are not or will not be sufficient to pay Taxes and
Insurance Premiums by the dates set forth in (a) and (b) above, Lender shall notify Borrower in writing of such determination and Borrower shall increase its monthly payments to Lender
by the amount that Lender estimates as provided above is sufficient to make up the deficiency at least thirty (30) days prior to the due date of the Taxes and/or thirty (30) days prior
to expiration of the Policies, as the case may be; provided, however, that notwithstanding the foregoing, Borrower shall not be required to pay any such additional amounts until five
(5) Business Days after Lender shall have given written notice of the additional amount due. 

        (b)   Borrower
shall have the right, exercisable on thirty (30) days' notice to Lender, in lieu of making monthly deposits hereunder on account of Taxes, to
(i) deposit with Lender Tax and Insurance Reserve Funds in an amount estimated by Lender from time to time in accordance with the standards set forth in clause (a) above, to be
sufficient to pay one-half (1/2) of the Taxes assessed against the Properties in the ensuing twelve (12) month period, which deposit shall serve as additional
security for Borrower's obligations under the Loan Documents. In the event that Borrower shall make such election, then (i) Borrower shall have no obligation to make any further monthly
deposits on account of Taxes, but shall instead have the obligation to within ten (10) Business Days of request by Lender, increase the amount on deposit to cover any increase in Lender's
estimate as aforesaid in the amount of Taxes that will be payable over the ensuing twelve (12) month period, and (ii) Lender shall have no obligation to apply or release any Tax and
Insurance Reserve Funds to or for the payment of Taxes, and all Taxes shall thereafter be paid by Borrower with other funds of Borrower. 

        7.2.2.    Waiver of Tax and Insurance Escrow.    Without limiting any
provision of Section 5.1.2 or Section 8.1(a)(iii) hereof, Borrower shall be relieved of
its obligation to make the deposits to the Tax and Insurance Reserve Account in respect of Taxes and Insurance Premiums under Section 7.2.1 above
and generally of all of its obligations and rights under this Section 7.2 (and Lender shall have no corresponding obligation to apply any of the
Tax and Insurance Funds to the payment of Taxes and Insurance Premiums), unless (i) Lender has received notice of the non-payment of all Taxes and Insurance Premiums by Mortgage
Borrower and Maryland Owner or, alternatively, (ii) in the case where Senior Mezzanine Borrower has established and is maintaining the Tax and Insurance Reserve Account, Lender has received
notice of the non-payment of all Taxes and Insurance Premiums by such Senior Mezzanine Borrower. 

        Section 7.3.    Intentionally Omitted.    

        7.3.1.    Deposits.    (a) Borrower shall pay to Lender on the
Closing Date an amount equal to one-fourth (1/4) of the product of the following: (i) $300.00, multiplied by (ii) the aggregate number of beds at the
Facilities as adjusted by Lender annually based on the then aggregate number of beds at the Facilities (the "Replacement Reserve Deposit"), which amount
is reasonably estimated by Lender in its sole discretion to be due for replacements and repairs required to be made to the Properties during the calendar year (collectively, the
"Replacements"). Amounts so deposited shall be referred to herein as the "Replacement Reserve Funds" and
the account in which such amounts are held shall be referred to herein as the "Replacement Reserve Account". In lieu of delivering Replacement Reserve
Funds, Borrower and Maryland Owner shall have the right pursuant to Section 7.6 to deliver a Letter of Credit in an amount equal to the
Replacement Reserve Deposit. Except as specified in Section 7.3.1(b), Borrower acknowledges that Lender shall have no obligation to disburse any
portion of the Replacement Reserve Funds which shall be held by Lender during the entire term of the Loan subject to Section 7.5. 

88

 

  
        (b)   In the event that with respect to any calendar year commencing with 2008, (i) Borrower shall expend on Replacements more than the Required Annual Replacement
Expenditure, (ii) Borrower shall deliver to Lender an Officer's Certificate certifying the total amount expended during such year for Replacements, with a breakdown by Individual Property, and
(iii) no Event of Default shall then be continuing, then the amount of the Replacement Reserve Deposit for the immediately succeeding calendar year shall be reduced by an amount equal to
one-fourth (1/4) of the amount by which such expenditures exceeded the Required Annual Replacement Expenditure. Within thirty (30) days after the end of each
subsequent calendar year, Borrower shall deliver to Lender the Officer's Certificate described in clause (ii) above, and Lender shall, based on Borrower's expenditure for Replacements for such
calendar year, adjust (i.e., increase or decrease) the amount of the Replacement Reserve Deposit so that it shall be equal to one-fourth (1/4) of the Required Annual
Replacement Expenditure minus one-fourth (1/4) of the amount (if any) by which the expenditures for Replacements for the calendar year in question exceeded the Required
Annual Replacement Expenditure for the calendar year in question. Within ten (10) Business Days after Lender shall have so adjusted the amount of the Replacement Reserve Deposit, (A) if
Replacement Reserve Funds are then being held in the Replacement Reserve Account, Lender shall release to Borrower any excess Replacement Reserve Funds as so calculated then being held in the
Replacement Reserve Account, or Borrower shall deliver to Lender an amount equal to any deficiency in the amount of the Replacement Reserve Funds then being held in the Replacement Reserve Account, as
applicable, and (B) if a Letter of Credit is then being held by Lender in lieu of Replacement Reserve Funds, Borrower shall deliver to Lender a replacement Letter of Credit in an amount equal
to the recalculated amount of the Replacement Reserve Deposit and Lender shall return to Borrower the existing Letter of Credit. Notwithstanding the foregoing, Borrower shall not be entitled to any
reduction in the amount of the Replacement Reserve Deposit unless at the time in question the conditions set forth in clauses (i) and (iii) above are satisfied. 

        7.3.2.    Waiver of Replacement Reserve Account.    Borrower shall be
relieved of its obligation to make any deposits of the Replacement Reserve Funds under Section 7.3.1 above and generally of all of its
obligations and rights under this Section 7.3 (and Lender shall have no corresponding obligation to apply any of the Replacement Reserve Funds to
the payment of any Replacements), unless (i) Lender has received notice of the non-payment of all Replacement Reserve Funds by Mortgage Borrower and Maryland Owner or,
alternatively, (ii) in the case where Senior Mezzanine Borrower has established and is maintaining the Replacement Reserve Account, notice of the non-payment of all Replacement
Reserve Funds by such Senior Mezzanine Borrower. 

        Section 7.4.    Intentionally Omitted.    

        Section 7.5.    Reserve Funds,
Generally.    (a) Borrower grants to Lender a first-priority, perfected security interest in the Reserve Funds and any and all monies now or hereafter
deposited in the Reserve Accounts as additional security for payment of the Debt. Until expended or applied in accordance herewith, the Reserve Funds shall constitute additional security for the Debt.
During the continuance of an Event of Default, Lender may, in addition to any and all other rights and remedies available to Lender, apply any sums then present in any or all of the Reserve Funds to
the purpose for which such Reserves were intended or to the payment of the Debt in any order in its sole discretion. The Reserve Funds shall not constitute trust funds and may be commingled with other
monies held by Lender. 

        (b)   Borrower
shall not, without obtaining the prior consent of Lender, further pledge, assign or grant any security interest in the Reserve Funds or any portion thereof or
the monies deposited in the Reserve Accounts or any portion thereof or permit any lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements,
except those naming Lender as the secured party, to be filed with respect thereto. 

89

 

        (c)   The
Reserve Funds shall be held in Eligible Accounts and shall bear interest at a money market rate selected by Lender and may be invested in Permitted Investments (as
defined in the Cash Management Agreement) pursuant to the Cash Management Agreement. All interest or other earnings on the Reserve Funds (other than the Replacement Reserve Funds and the Low DSCR
Reserve Funds) shall be paid to Lender. All interest or other earnings on the Replacement Reserve Funds and the Low DSCR Reserve Funds shall be added to and become a part of such Reserve Fund, and
shall be disbursed in the same manner as other monies deposited in such Reserve Fund. Lender shall have the right to direct the investment of all sums on deposit in the Tax and Insurance Reserve
Account in Permitted Investments and except during the continuance of an Event of Default Borrower shall have the right to direct the investment of all sums on deposit in the Replacement Reserve
Account and the Low DSCR General Reserve Account in Permitted Investments provided (i) such investments are then regularly offered for accounts of this size, category and type, (ii) such
investments are permitted by applicable federal, state and local rules, regulations and laws, and (iii) the maturity date of the Permitted Investment is not later than the date on which the
applicable Reserve Funds are required for payment of an obligation for which such Reserve Fund was created. During the continuance of an Event of Default, Lender shall have the right to direct the
investment of all sums on deposit in the Replacement Reserve Account, the Low DSCR Interest Floor Reserve Account and the Low DSCR General Reserve Account in Permitted Investments. Borrower shall be
responsible for payment of any federal, state or local income or other tax applicable to the interest or income earned on the Reserve Funds. No other investments of the sums on deposit in the Reserve
Funds shall be permitted except as set forth in this Section 7.5. Borrower shall bear all reasonable costs associated with the investment of the
sums in the account in Permitted Investments. Such costs shall be deducted from the income or earnings on such investment, if any, and to the extent such income or earnings shall not be sufficient to
pay such costs, such costs shall be paid by Borrower reasonably promptly on demand by Lender. Lender shall have no liability for the rate of return earned or losses incurred on the investment of the
sums in Permitted Investments other than losses resulting from Lender's or any Servicer's gross negligence or willful misconduct. 

        (d)   Borrower
shall indemnify Lender and hold Lender harmless from and against any and all actions, suits, claims, demands, liabilities, losses, damages, obligations and
costs and expenses (including reasonable attorneys fees and disbursements) arising from or in any way connected with the Reserve Funds or the performance of the obligations for which the Reserve Funds
were established, except arising by reason of Lender's or any Servicer's gross negligence or willful misconduct. 

        (e)   Upon
payment of the Loan in full all amounts held in the Reserve Accounts (including interest earned thereon except as otherwise expressly provided herein) shall be paid
to Borrower. 

        Section 7.6.    Letters of Credit.    

        7.6.1.    Delivery of Letters of Credit.    (a) In lieu of
making the payments to any of the Reserve Funds (other than the Tax and Insurance Reserve Funds and Low DSCR Reserve Funds), Borrower may deliver to Lender a Letter of Credit in accordance with the
provisions of this Section 7.6. Additionally, Borrower may deliver to Lender a Letter of Credit in accordance with the provisions of this  Section 7.6 in lieu of deposits previously made to the Replacement Reserve Funds. The aggregate amount of any Letter of Credit and cash on
deposit with respect to the Replacement Reserve Funds shall at all times be at least equal to the aggregate amount which Borrower is required to have on deposit in such Reserve Fund pursuant to this
Agreement. 

        (b)   Borrower
shall give Lender no less than thirty (30) days' notice of Borrower's election to deliver a Letter of Credit and Borrower shall pay to Lender all of
Lender's reasonable out-of-pocket costs and expenses in connection therewith. Borrower shall not be entitled to draw from (or to require Lender to draw from) any such Letter of
Credit. Upon thirty (30) days' notice to Lender and not more frequently than once each calendar quarter, (i) Borrower may replace any Letter of Credit with a cash 

90

 

deposit
to the applicable Reserve Fund, or (ii) reduce the face amount of any Letter of Credit (by delivery to Lender of a substitute Letter of Credit or an amendment to the existing Letter of
Credit then held by Lender, in either case, in form and substance reasonably satisfactory to Lender) by an amount such that the face amount of the Letter of Credit (as so substituted or amended), when
taken together with any cash Reserve Funds on deposit in the applicable Reserve Account, is, in Lender's reasonable discretion, sufficient for the purposes for which such Reserve Account was
established. 

        (c)   Subject
to Section 7.7, in the event that Lender shall draw on a Letter of Credit delivered under this  Section 7.6, Lender shall apply the proceeds
thereof in the manner provided hereunder for the application of the Reserve Funds in lieu of which
the applicable Letter of Credit was delivered. 

        Section 7.7.    Provisions Regarding Letters of Credit.    

        7.7.1.    Security for Debt.    Each Letter of Credit delivered under
this Agreement shall be additional security for the payment of the Debt. During the continuance of an Event of Default, Lender shall have the right, at its option, to draw on any Letter of Credit and
to apply all or any part thereof to the payment of the items for which such Letter of Credit was established or to apply each such Letter of Credit to payment of the Debt in such order, proportion or
priority as Lender may determine in its sole and absolute discretion. Unless the Loan is paid in full on the Maturity Date, any such Letter of Credit may be applied to reduce the Debt. 

        7.7.2.    Additional Rights of Lender.    In addition to any other
right Lender may have to draw upon a Letter of Credit pursuant to the terms and conditions of this Agreement, Lender shall have the additional rights to draw in full any Letter of Credit:
(a) with respect to any evergreen Letter of Credit, if Lender has received a notice from the issuing bank that the Letter of Credit will not be renewed and a substitute Letter of Credit is not
provided at least thirty (30) days prior to the date on which the outstanding Letter of Credit is scheduled to expire; (b) with respect to any Letter of Credit with a stated expiration
date, if Lender has not received a notice from the issuing bank that it has renewed the Letter of Credit at least thirty (30) days prior to the date on which such Letter of Credit is scheduled
to expire and a substitute Letter of Credit is not provided at least thirty (30) days prior to the date on which the outstanding Letter of Credit is scheduled to expire; (c) upon receipt
of notice from the issuing bank that the Letter of Credit will be terminated (except if the termination of such Letter of Credit is permitted pursuant to the terms and conditions of this Agreement or
a substitute Letter of Credit is provided); or (d) if the bank issuing the Letter of Credit shall cease to be an Eligible Institution. Notwithstanding anything to the contrary contained in the
above, Lender is not obligated to draw any Letter of Credit upon the happening of an event specified in (a), (b), (c) or (d) above and shall not be liable for any losses sustained by
Borrower due to the insolvency of the bank issuing the Letter of Credit if Lender has not drawn the Letter of Credit. 

        Section 7.8.    Transfer of Reserve Funds Under Mortgage
Loan.    If each of Mortgage Lender and each Senior Mezzanine Lender waives (other than any waivers specifically set forth in the Mortgage Loan Agreement or in any
Senior Mezzanine Loan Agreement as of the Closing Date thereof) any reserves or escrow accounts required in accordance with the terms of the Mortgage Loan Agreement, which reserves or escrow accounts
are also required in accordance with the terms of this Article VII, or if the Mortgage Loan or any Senior Mezzanine Loan is refinanced or paid
off in full (without a prepayment of the Loan) and Reserve Funds that are required hereunder are not required under the new mortgage loan, if any, then Borrower shall cause any amounts that would have
been deposited into any reserves or escrow accounts in accordance with the terms of the Mortgage Loan Agreement to be transferred to and deposited with Lender in accordance with the terms of this  Article VII (and Borrower shall enter into a cash management agreement for the benefit of Lender substantially similar to the arrangement entered
into at the time of the closing of the Mortgage Loan). 

91

 

        VIII.    DEFAULTS    

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

          (i)  if
any payment on account of principal or interest or in respect of the Reserve Funds (other than the Replacement Reserve) under the Loan shall not be paid on or prior
to the date on which such payment is due hereunder; 

         (ii)  if
any payment on account of the Debt (other than on account of principal or interest or in respect of the Reserve Funds (other than the Replacement Reserve) under the
Loan) or other amount due under the Loan Documents is not paid on or prior to that date which is ten (10) Business Days after such payment is due in accordance with its obligations under the
Loan Documents and Lender shall have given notice thereof; provided, however, that a monthly or other invoice delivered by Servicer in the ordinary course consistent with its normal and customary
practices, regardless of whether same complies with the notice provisions hereof shall constitute notice for all purposes of this  Section 8.1(a)(ii); 

        (iii)  subject
to the provisions of Section 7.2, if any of the Taxes or Other Charges are not paid prior to the date
that same would be deemed delinquent (except to the extent (a) Lender, any Senior Mezzanine Lender or Mortgage Lender is obligated to disburse Tax and Insurance Reserve Funds to pay for such
Taxes pursuant to Section 7.2 hereof, (b) Lender, any Senior Mezzanine Lender or Mortgage Lender has sufficient Tax and Insurance Reserve
Funds in the Tax and Insurance Reserve Account for such payment to make such payment, (c) no other Event of Default shall be continuing and (d) Lender, any Senior Mezzanine Lender or
Mortgage Lender fails to make such payment and Lender's, Senior Mezzanine Lender's or Mortgage Lender's access to the Tax and Insurance Reserve Funds has not otherwise been constrained or restricted
in any manner by Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner); 

        (iv)  if
the Policies are not kept in full force and effect (except to the extent (a) such default is due solely to the failure to pay the premiums for such Policies,
(b) Lender, any Senior Mezzanine Lender or Mortgage Lender is obligated to disburse Tax and Insurance Reserve Funds to pay for such premiums pursuant to  Section 7.2 hereof, (c) Lender,
any Senior Mezzanine Lender or Mortgage Lender has sufficient Tax and Insurance Reserve Funds in the Tax
and Insurance Reserve Account for such payment to make such payment, (d) no other Event of Default shall be continuing and (e) Lender, any Senior Mezzanine Lender or Mortgage Lender
fails to make such payment and Lender's, Senior Mezzanine Lender's or Mortgage Lender's access to the Tax and Insurance Reserve Funds has not been constrained or restricted in any manner), or if,
within fifteen (15) days after request from Lender, certified copies of the Policies are not delivered to Lender; 

         (v)  if
Borrower or Principal Transfers any portion of the Collateral in violation of the provisions of this Agreement or the Pledge Agreement; 

        (vi)  if
any representation or warranty made by Borrower herein or in any other Loan Document, or in any report, certificate, financial statement or other instrument,
agreement or document furnished to Lender shall have been false or misleading in any material respect as of the date the representation or warranty was made;  provided, however, that if Borrower is able to establish (with Borrower having the burden of proof) that
same did not result from Borrower's gross negligence or willful or intentional misconduct, then Borrower shall have a period of thirty (30) days to cure same, which period shall commence upon
the date that Borrower first received notice that such representation or a warranty was false or misleading, it being agreed, however, that no such cure shall affect the obligations under  Section 10.13 or any other provision of the 

92

 

Loan
Documents of any Indemnifying Person to indemnify any Indemnified Person with respect to any matter relating to such representation or warranty; 

       (vii)  if
Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Principal, any Guarantor, Master Tenant or any Requisite Operator shall make an assignment
for the benefit of creditors; 

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

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

         (x)  if
Borrower breaches any of its respective negative covenants contained in Section 5.2 (other than  Section 5.2.6, with respect to which
clause (xvi) below shall apply, and other than Sections 5.2.1(b),
5.2.8, 5.2.11 and 5.2.12, with respect to which Borrower shall have a period of ten (10) days to cure same, which period
shall commence on the date Lender gives Borrower notice of such breach) or  Section 5.1.19 or intentionally breaches any representation, warranty or covenant contained in Section 4.1.30 or
5.1.7 hereof; 

        (xi)  with
respect to any term, covenant or provision set forth herein which specifically contains a notice requirement or grace period, if Borrower shall be in default under
such term, covenant or condition after the giving of such notice or the expiration of such grace period; 

       (xii)  if
any of the material assumptions contained in (A) the Insolvency Opinion or any Additional Insolvency Opinion or (B) the True-Lease Opinion
or any Additional True-Lease Opinion delivered to Lender in connection with the Loan is or shall become untrue in any material respect; 

      (xiii)  Intentionally
Omitted; 

      (xiv)  if
(A) Master Tenant shall fail in the payment of (i) any fixed or base rent set forth in or made payable pursuant to the Master Lease or (ii) any
additional rent set forth in or made payable pursuant to the Master Lease within thirty (30) days of the date such rent or other charge is payable after the expiration of any notice and grace
period provided for under the Master Lease, (B) [Intentionally Omitted], (C) if any one or more of the events referred to in the Master Lease shall occur which
would cause the Master Lease to terminate without notice or action by the Master Tenant under the Master Lease or which would entitle the Master Tenant to terminate the Master Lease and the term
thereof by giving notice to Mortgage Borrower, as landlord thereunder, other than a termination arising from a casualty or condemnation with respect to which Lender elects to apply any Insurance
Proceeds or Award to the principal balance of the Loan instead of making the same available for Restoration, (D) if the Master Lease shall be surrendered or the Master Lease shall be terminated
or canceled for any reason or under any circumstances 

93

 

whatsoever,
except with the consent of Lender or (E) if any of the material terms, covenants or conditions of the Master Lease or any South Carolina Management Agreement shall in any manner be
modified, changed, supplemented, altered, restated or amended without the consent of Lender; 

       (xv)  if
Borrower fails to comply with the covenants as to Prescribed Laws set forth in Section 5.1.1 hereof; 

      (xvi)  if
Borrower shall continue to be in default under any of the other terms, covenants or conditions of this Agreement or any other Loan Document not specified in  clauses (i) to (xv) above or (xvii) to  (xxiii) below, for ten (10) Business Days after notice to Borrower from Lender, in the case
of any default which can be cured by the payment of a
sum of money, or for thirty (30) days after notice from Lender in the case of any other default; provided,  however, that if such non-monetary
default is susceptible of cure but cannot reasonably be cured within such thirty (30) day period and provided further that Borrower shall have commenced to cure such default within such thirty
(30) day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for such time as is reasonably necessary for Borrower
in the exercise of due diligence to cure such default, such additional period not to exceed one hundred fifty (150) days; 

     (xvii)  Intentionally Omitted; 

    (xviii)  if
there shall be material default under any of the other Loan Documents beyond the applicable notice, grace and/or cure periods set forth in such documents, whether
as to Borrower, Guarantor or the Collateral, or if no express notice, grace or cure period shall be set forth therein then the notice, grace and/or cure period set forth in  clause (xvi) above shall
apply; 

      (xix)  Intentionally Omitted; 

       (xx)  Intentionally Omitted; 

      (xxi)  if
Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner or any Facility violates any applicable Health Care Requirement and shall fail to correct,
within the time deadlines set by any Health Care Authority, managed care company, insurance company or other third-party payor any deficiency, if such violation or deficiency would reasonably be
expected to have, or does have a Material Adverse Effect; 

     (xxii)  any
Borrower Entity (as defined under the Mortgage Loan Agreement) or Maryland Owner shall revoke or modify the Rent Instruction or any other instruction or agreement
governing the direction of payments by Master Tenant to Mortgage Borrower and Maryland Owner, without in each instance the prior written consent of Lender; 

    (xxiii)  if
the Liens created pursuant to any Loan Document shall cease to be a fully perfected enforceable first priority security interest; or 

    (xxiv)  a
Mortgage Loan Event of Default or Senior Mezzanine Loan Event of Default shall occur and be continuing. 

        (b)   During
the continuance of an Event of Default (other than an Event of Default described in clause (vii) or  (viii) above) and at any time thereafter, in
addition to any other rights or remedies available to it pursuant to this Agreement and the other Loan
Documents or at law or in equity, Lender may take such action, without notice or demand, that Lender deems advisable to protect and enforce its rights against Borrower and in and to all or any of the
Collateral, including declaring the Debt to be immediately due and payable, and Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower and
any or all of the Collateral, including all rights or remedies available at law or in equity; and during the continuance of any Event of Default 

94

 

described
in clause (vii) or (viii) above, the Debt and all other obligations of Borrower
hereunder and under the other Loan Documents shall immediately and automatically become due and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand,
anything contained herein or in any other Loan Document to the contrary notwithstanding. 

        (c)   Notwithstanding
anything to the contrary contained in this Agreement, a default under clause (a)(xxi) above or a
default under Section 5.1.24 or a default under the Environmental Indemnity consisting of an Individual Property having an adverse environmental
condition that is not permitted under the Environmental Indemnity (as opposed to any other default hereunder including, without limitation, the failure or refusal of any indemnitor thereunder to
comply with its obligations relating to the indemnification of Lender or any other Person) (a "Limited Cure Default") shall not, in each instance,
constitute an Event of Default hereunder in the event that Borrower, in accordance with Section 2.6 hereof (including the satisfaction of all
conditions therein contained other than those which by their express terms are applicable only to a Permitted Release or an Affected Property Release), obtains or causes to be obtained the release of
the Individual Property subject to the Operating Lease with such Affected Operator from the Lien of the Mortgage thereon within forty-five (45) days of such Limited Cure Default
(each such release, a "Limited Cure Release"), except that (A) the Release Amount for each such Individual Property shall be equal to one hundred
twenty-five percent (125%) of the Allocated Loan Amount for such Individual Property (such amount, the "Limited Cure Release Amount"), and
(B) in the event that the Lockout Release Date shall not have occurred, Borrower shall pay the Spread Maintenance Premium. In no event shall Borrower be entitled to more than thirty-three
(33) Limited Cure Releases under this Section 8.1(c) during the term of the Loan. Provided that Borrower shall effect or cause to be
effected a Limited Cure Release in accordance with this subsection (c), in no event shall the Limited Cure Default subject to such Limited Cure
Release constitute an independent Event of Default under Subsection (a)(xiii) hereof. 

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

        (b)   With
respect to Borrower and the Collateral, nothing contained herein or in any other Loan Document shall be construed as requiring Lender to resort to any portion of
the Collateral for the satisfaction of any of the Debt in preference or priority to any other portion of the Collateral and Lender may seek satisfaction out of all of the Collateral or any part
thereof, in its absolute discretion in respect of the Debt. In addition, Lender shall have the right from time to time to partially foreclose upon the Collateral in any manner and for any amounts
secured by the Pledge Agreement then due and payable as determined by Lender in its sole discretion including the following circumstances: (i) in the event Borrower defaults beyond any
applicable grace period in the payment of one or more 

95

 

scheduled
payments of principal and interest, Lender may foreclose upon the Collateral to recover such delinquent payments, or (ii) in the event Lender elects to accelerate less than the entire
outstanding principal balance of the Loan, Lender may foreclose upon the Collateral to recover so much of the principal balance of the Loan as Lender may accelerate and such other sums secured by the
Collateral as Lender may elect. Notwithstanding one or more partial foreclosures, the Collateral shall remain subject to the Pledge Agreement and the other Loan Documents to secure payment of sums
secured by the Collateral and not previously recovered. 

        (c)   Lender
shall have the right from time to time to sever the Note and the other Loan Documents into one or more separate notes, pledges and other security documents (the
"Severed Loan Documents") in such denominations as Lender shall determine in its sole discretion for purposes of evidencing and enforcing its rights and
remedies provided hereunder. Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and such other documents as Lender shall
request in order to effect the severance described in the preceding sentence, all in form and substance reasonably satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender as
its true and lawful attorney, coupled with an interest, in its name and stead to make and execute all documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that
its said attorney shall do by virtue thereof. Except as may be required in connection with a Securitization pursuant to Section 9.1 hereof,
(i) Borrower shall not be obligated to pay any costs or expenses incurred in connection with the preparation, execution, recording or filing of the Severed Loan Documents, (ii) the
Severed Loan Documents shall not contain any representations, warranties or covenants not contained in the Loan Documents and any such representations and warranties contained in the Severed Loan
Documents will be given by Borrower only as of the Closing Date, (iii) the economic effect and the other terms of the Severed Loan Documents shall not materially reduce the rights of Borrower
under the Loan Documents or materially increase the obligations of Borrower under the Loan Documents or any other party obligated in any manner to Lender pursuant to the Loan Documents,
(iv) the total loan amount under the Severed Loan Documents shall equal the amount of the Loan immediately prior to the creation of the Severed Loan Documents and (v) the weighted
average interest rate spread under the Severed Loan Documents shall on the date created equal the interest rate which was applicable to the Loan immediately prior to the creation of the Severed Loan
Documents (other than during the continuance of an Event of Default). 

        (d)   Any
amounts recovered from the Collateral after an Event of Default may be applied by Lender toward the payment of any interest and/or principal of the Loan and/or any
other amounts due under the Loan Documents in such order, priority and proportions as Lender in its sole discretion shall determine. 

        (e)   During
the continuance of an Event of Default, Lender may, but without any obligation to do so and without notice to or demand on Borrower and without releasing Borrower
from any obligation hereunder or being deemed to have cured any Event of Default hereunder, make, do or perform any obligation of Borrower hereunder in such manner and to such extent as Lender may
deem necessary. Borrower shall cause Mortgage Borrower and Maryland Owner to permit Lender to enter upon the Property for such purposes, or appear in, defend, or bring any action or proceeding to
protect its interest in the Collateral for such purposes, and the cost and expense thereof (including reasonable attorneys' fees to the extent permitted by law), with interest as provided in this  Section 8.2, shall constitute a portion of the Debt and shall be due and payable to Lender upon demand. All such costs and expenses incurred by
Lender in remedying such Event of Default or such failed payment or act or in appearing in, defending, or bringing any action or proceeding shall bear interest at the Default Rate, for the period
after such cost or expense was paid until the date of payment to Lender. All such costs and expenses paid by Lender together with interest thereon calculated at the Default Rate shall be deemed to
constitute a portion of the Debt and be secured by the liens, claims and security interests 

96

 

provided
to Lender under the Loan Documents and shall be immediately due and payable upon demand by Lender therefor. 

        Section 8.3.    Remedies Cumulative; Waivers.    The rights,
powers and remedies of Lender under this Agreement shall unless prohibited by applicable law be cumulative and not exclusive of any other right, power or remedy which Lender may have against Borrower
pursuant to this Agreement or the other Loan Documents, or existing at law or in equity or otherwise. Unless prohibited by applicable law, Lender's rights, powers and remedies may be pursued
singularly, concurrently or otherwise, at such time and in such order as Lender may determine in Lender's sole discretion. No delay or omission to exercise any remedy, right or power accruing upon an
Event of Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be
deemed expedient. A waiver of one Default or Event of Default with respect to Borrower shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any
remedy, right or power consequent thereon. 

        IX.    SPECIAL PROVISIONS    

        Section 9.1    Sale of Notes and
Securitization.    (a) Borrower acknowledges and agrees that Lender may sell all or any portion of the Loan and the Loan Documents, or issue one or more
participations therein, or consummate one or more private or public securitizations of rated single- or multi-class securities (the "Securities")
secured by or evidencing ownership interests in all or any portion of the Loan and the
Loan Documents or a pool of assets that include the Loan and the Loan Documents (such sales, participations and/or securitizations, collectively, a
"Securitization"). At the request of Lender, and to the extent not already required to be provided by Borrower under this Agreement, Borrower shall use
reasonable efforts to provide information which may be reasonably required by Lender and/or mezzanine lenders in order to satisfy the market standards to which Lender customarily adheres or which may
be required by the Rating Agencies in connection with any such Securitization including: 

          (i)  use
commercially reasonable efforts to provide or cause to be provided additional and/or updated Provided Information, together with appropriate verification and/or
consents related to the Provided Information, through letters of auditors or opinions of counsel of independent attorneys reasonably acceptable to Lender and the Rating Agencies; 

         (ii)  assist
in preparing descriptive materials of the Loan, the Loan Documents, the Properties, the Master Lease, the Operating Lease, Borrower, Senior Mezzanine Borrower,
Mortgage Borrower, Maryland Owner, Operator, Mortgagor and Guarantor for presentations to any or all of the Rating Agencies, and work with, and if requested, supervise, third-party service providers
engaged by Borrower, the Principal and their respective Affiliates to obtain, collect, and deliver information requested or required by Lender or the Rating Agencies; 

        (iii)  (x)
deliver updated opinions of counsel as to non-consolidation, true lease, due execution and enforceability with respect to the opinions of counsel
delivered at closing, and (y) use commercially reasonable efforts to deliver a so-called "10b-5" opinion, which opinion shall be limited to the matters outlined on  Schedule 9.1(a)(iii) and for
which the recipient will be an underwriter, placement agent or an initial purchaser in connection with a
Securitization; 

        (iv)  if
reasonably requested by Lender or if requested by any Rating Agency, use commercially reasonable efforts to deliver such additional tenant estoppel letters with
respect to the Master Lease and the Operating Leases, which estoppel letters shall be reasonably satisfactory to the Rating Agencies; 

         (v)  make
such representations and warranties as of the closing date of the Securitization with respect to the Collateral, the Senior Mezzanine Collateral, Properties,
Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Guarantor, the Principal, Master Tenant and 

97

 

Operator,
the Master Lease, the Operating Lease and the Loan Documents as may be reasonably requested by Lender or the Rating Agencies and consistent with the facts covered by such representations and
warranties as they exist on the date thereof, including the representations and warranties made in the Loan Documents, subject to the terms of the applicable Loan Documents; 

        (vi)  execute
such amendments to the Loan Documents as may be reasonably requested by Lender or the Rating Agencies to effect the Securitization and/or deliver one or more
new component notes to replace the original note or modify the original note to reflect multiple components of the Loan (and such new notes or modified note shall have the same initial weighted
average coupon of the original note, but such new notes or modified note may change the interest rate of the Loan), all in accordance with  Section 9.5 hereof, and modify the Cash Management
Agreement with respect to the newly created components such that the pricing and marketability
of the Securities and the size of each class of Securities and the rating assigned to each such class by the Rating Agencies shall provide the most favorable rating levels and achieve the optimum
rating levels for the Loan, provided that nothing contained in this Agreement shall require Borrower, whether in connection with a Securitization or otherwise, to execute or deliver documents in
substitution for any Loan Documents or representing new or additional documents, which, in any case, shall adversely affect in any way any of the obligations, rights or remedies of Borrower, Principal
or Guarantor under this Agreement or the other Loan Documents, including the economic terms thereof; 

       (vii)  if
requested by Lender, review any information specific to the Properties (as opposed to property generally), the Senior Mezzanine Collateral, the Collateral,
Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Principal, the Guarantor, Master Tenant, Operator, the Loan Documents and the Loan which is contained in a preliminary or final
private placement memorandum, prospectus, prospectus supplement (including any amendment or supplement to either thereof), or other disclosure document to be used by Lender or any Affiliate thereof
relating specifically to the Loan (as opposed to Loans in general); and 

      (viii)  supply
to Lender such documentation, financial statements and reports in form and substance required in order to comply with any applicable securities laws (as
reasonably determined by, and requested in correspondence from, Lender's counsel). 

        (b)   If,
at the time one or more Disclosure Documents are being prepared for a Securitization, Lender expects that Borrower alone or Borrower and one or more Affiliates of
Borrower, Mortgage Borrower, Maryland Owner, Master Tenant and Operator collectively, or the Property alone or the Property and Related Properties collectively, will be a Significant Obligor, Borrower
shall furnish and cause Master Tenant and Operator to furnish to Lender upon request (i) the selected financial data or, if applicable, Net Operating Income, required under
Item 1112(b)(1) of Regulation AB, if Lender expects that the principal amount of the Loan together with any Related Loans as of the cut-off date for such Securitization may,
or if the principal amount of the Loan together with any Related Loans as of the cut-off date for such Securitization and at any time during which the Loan and any Related Loans are
included in a Securitization does, equal or exceed ten percent (10%) (but less than twenty percent (20%)) of the aggregate principal amount of all mortgage loans included or expected to be included,
as applicable, in the Securitization or (ii) the financial statements required under Item 1112(b)(2) of Regulation AB, if Lender expects that the principal amount of the Loan
together with any Related Loans as of the cut-off date for such Securitization may, or if the principal amount of the Loan together with any Related Loans as of the cut-off
date for such Securitization and at any time during which the Loan and any Related Loans are included in a Securitization does, equal or exceed twenty percent (20%) of the aggregate principal amount
of all mortgage loans included or expected to be included, as applicable, in the Securitization. Such financial data or financial statements shall be furnished to Lender (A) within fifteen
(15) days after notice from Lender in connection with the preparation of Disclosure Documents for the Securitization, (B) not sooner than twenty-eight (28) days 

98

 

or
later than thirty (30) days after the end of each fiscal quarter of Borrower and (C) not later than seventy-three (73) days after the end of each fiscal year of Borrower;  provided,
however, that Borrower shall not be obligated to furnish financial data or financial
statements pursuant to clauses (B) or (C) of this sentence with respect to any period for which a filing pursuant to the Exchange Act in connection with or relating to the Securitization
(an "Exchange Act Filing") is not required. 

        (c)   All
financial data and financial statements provided by Borrower hereunder pursuant to Section 9.1(b) above shall
be prepared in accordance with GAAP, and shall meet the requirements of Regulation AB and other applicable legal requirements in the event the provisions of  Section 9.1(b) shall apply. All
annual financial statements referred to in  Sections 9.1(b)(ii) above shall be audited by a Pre-approved Auditor or such other independent accountants of Borrower reasonably
acceptable to Lender in accordance with Regulation AB and all other applicable legal requirements, shall be accompanied by the manually executed report of the independent accountants thereon,
which report shall meet the requirements of Regulation AB and all other applicable legal requirements, and shall be further accompanied by a manually executed written consent of the independent
accountants, in form and substance reasonably acceptable to Lender, to the inclusion of such financial statements in any Disclosure Document and any Exchange Act Filing and to the use of the name of
such independent accountants and the reference to such independent accountants as "experts" in any Disclosure Document and Exchange Act Filing, all of which shall be provided at the same time as the
related financial statements are required to be provided. All financial data and financial statements (audited or unaudited) provided by Borrower under  Section 9.1(b) above shall be accompanied by
an Officer's Certificate, which certification shall state that such financial statements meet the
requirements set forth in the first sentence of this Section 9.1(c). 

        (d)   If
requested by Lender, Borrower shall use commercially reasonable efforts to provide Lender, promptly upon request, with any other or additional financial statements,
or financial, statistical or operating information, as Lender shall reasonably determine to be required pursuant to Regulation AB or any amendment, modification or replacement thereto or other
legal requirements in connection with any Disclosure Document or any Exchange Act Filing or as shall otherwise be requested by Lender. 

        (e)   In
the event Lender reasonably determines, in connection with a Securitization, that the financial data and financial statements required in order to comply with
Regulation AB or any amendment, modification or replacement thereto or other legal requirements are other than as provided herein, then notwithstanding the provisions of  Section 9.1(b) and
(c) hereof, Lender may request, and Borrower shall use commercially reasonable
efforts to promptly provide, such other financial statements as Lender reasonably determines to be necessary or appropriate for such compliance. 

        (f)    Borrower
agrees that Lender may disclose information regarding the Collateral, the Properties and Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner,
Master Tenant, Guarantor and Operator that is provided to Lender pursuant to Section 5.1.11 and this Section in connection with the
Securitization to such parties requesting such information in connection with such Securitization. 

        (g)   Borrower
shall deliver, in connection with any Securitization, (i) one or more Officer's Certificates certifying as to the accuracy of all representations made by
Borrower in the Loan Documents as of the date of the closing of such Securitization in all relevant jurisdictions or indicating any exceptions to such representations and warranties, and
(ii) certificates of the relevant Governmental Authorities in all relevant jurisdictions indicating the good standing and qualification to do business of Borrower, Senior Mezzanine Borrower,
Mortgage Borrower, Maryland Owner, Master Tenant, Operator and Principal as of the date of the Securitization if available in such jurisdiction. 

99

 

  
        (h)   With respect to (i) the period prior to and including the Closing Date, Borrower, and (ii) the period subsequent to the Closing Date, Lender, shall be
responsible for all costs and expenses incurred by Borrower and Lender in connection with Borrower's complying with its obligations under this  Section 9.1 and under Section 9.2 below (including legal fees and costs incurred by
Borrower and Lender and the fees and expenses of the Rating Agencies). For the avoidance of doubt, all costs and expenses incurred by Borrower in connection with its indemnification and defense
obligations under Section 9.2 shall be borne solely by Borrower. 

        Section 9.2.    Securitization
Indemnification.    (a)    Borrower understands that certain of the Provided Information may be included in Disclosure Documents in connection with the
Securitization and may also be included in filings with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the "Securities
Act"), or the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or provided or made available to investors
or prospective investors in the Securities, the Rating Agencies, and service providers relating to the Securitization. In the event that the Disclosure Document is required to be revised prior to the
sale of all Securities, Borrower will cooperate with the holder of the Note in updating the Disclosure Document by providing all current information necessary to keep the Disclosure Document with
respect to the Loan accurate and complete in all material respects. 

        (b)   The
Indemnifying Persons agree to provide, in connection with the Securitization, an indemnification agreement (the "Indemnification
Agreement") (i) certifying that (A) the Indemnifying Persons have carefully examined the Disclosure Documents, including the sections entitled "Risk Factors,"
"Special Consideration", "Description of the Collateral," "Description of the Mezzanine Loans," "The Borrower" and "Certain Legal Aspects of the Mezzanine Loans" and (B) such sections and such
other information in the Disclosure Documents (only to the extent such information includes any Provided Information or any information specific to the Loan, the Loan Documents, Borrower, Mortgage
Borrower, Maryland Owner, the Collateral, the Property, Master Tenant, Operator, Guarantor and the Master Lease and the Operating Lease) (collectively with the Provided Information, the
"Covered Disclosure Information") do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements made, in the light of the circumstances under which they were made, not misleading, (ii) jointly and severally indemnifying Lender, JPMorgan, CS, BofA, or any Affiliate of Lender,
JPMorgan, CS or BofA that has filed any registration statement relating to the Securitization or has acted as the sponsor or depositor in connection with the Securitization, or any Affiliate of
Lender, JPMorgan, CS or BofA that acts as an underwriter, placement agent or initial purchaser of Securities issued in the Securitization, any other co-underwriters,
co-placement agents or co-initial purchasers of Securities issued in the Securitization, and each of their respective officers, directors, partners, employees, representatives,
agents and Affiliates and each Person or entity who controls any such Person within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the
"Indemnified Persons"), for any losses, claims, damages, liabilities, costs or expenses (including reasonable legal fees and expenses for enforcement of
these obligations (collectively, the "Liabilities")) to which any such Indemnified Person may become subject insofar as the Liabilities arise out of or
are based upon any untrue statement or alleged untrue statement of any material fact contained in the Covered Disclosure Information or arise out of or are based upon the omission or alleged omission
to state in the Covered Disclosure Information a material fact required to be stated therein or necessary in order to make the statements in the Covered Disclosure Information, in light of the
circumstances under which they were made, not misleading and (iii) agreeing to reimburse each Indemnified Person for any reasonable legal fees or other expenses incurred by such Indemnified
Person, as they are incurred, in connection with investigating or defending the Liabilities. This indemnity agreement will be in addition to any liability which Borrower may otherwise have pursuant to
the Loan Documents or applicable law. Moreover, the indemnification provided for in clauses (ii) and (iii) above shall be effective whether or not an Indemnification Agreement is
provided. 

100

 

        (c)   In
connection with filings under the Exchange Act, the Indemnifying Persons jointly and severally agree to indemnify (i) the Indemnified Persons for Liabilities
to which any such Indemnified Person may become subject insofar as the Liabilities arise out of or are based upon any untrue statement or alleged untrue statement of any material fact in the Covered
Disclosure Information, or the omission or alleged omission to state in the Covered Disclosure Information a material fact required to be stated therein or necessary in order to make the statements in
the Covered Disclosure Information, in light of the circumstances under which they were made, not misleading and (ii) reimburse each Indemnified Person for any reasonable legal fees or other
expenses incurred by such Indemnified Persons, as they are incurred, in connection with defending or investigating the Liabilities. 

        (d)   Promptly
after receipt by an Indemnified Person of notice of any claim or the commencement of any action, the Indemnified Person shall, if a claim in respect thereof is
to be made against any Indemnifying Person, notify such Indemnifying Person in writing of the claim or the commencement of that action; provided,  however,
that the failure to notify such Indemnifying Person shall not relieve it from any liability which it may have under the indemnification
provisions of this Section 9.2 except to the extent that it has been materially prejudiced by such failure and,  provided, further, that the failure to notify such Indemnifying Person shall not relieve it from any
liability which it may have to an Indemnified Person otherwise than under the provisions of this Section 9.2. If any such claim or action shall
be brought against an Indemnified Person, and it shall notify any Indemnifying Person thereof, such Indemnifying Person shall be entitled to participate therein and, to the extent that it wishes,
assume the defense thereof with counsel reasonably satisfactory to the Indemnified Person and shall have the right to negotiate and enter into and/or consent to any settlement, subject to the prior
approval of Lender and, if different, the Indemnified Person. After notice from any Indemnifying Person to the Indemnified Person of its election to assume the defense of such claim or action, such
Indemnifying Person shall not be liable to the Indemnified Person for any legal or other expenses subsequently incurred by the Indemnified Person in connection with the defense thereof except as
provided in the following sentence; provided, however, if the defendants in any such action include both
an Indemnifying Person, on the one hand, and one or more Indemnified Persons on the other hand, and an Indemnified Person shall have reasonably concluded that there are any legal defenses available to
it and/or other Indemnified Persons that are different or in addition to those available to the Indemnifying Person, the Indemnified Person or Persons shall have the right to select separate counsel
to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such Indemnified Person or Persons. The Indemnified Person shall instruct its counsel to maintain
reasonably detailed billing records for fees and disbursements for which such Indemnified Person is seeking reimbursement hereunder and shall submit copies of such detailed billing records to
substantiate that such counsel's fees and disbursements are solely related to the defense of a claim for which the Indemnifying Person is required hereunder to indemnify such Indemnified Person. No
Indemnifying Person shall be liable for the expenses of more than one (1) such separate counsel unless such Indemnified Person shall have reasonably concluded that there may be legal defenses
available to it that are different from or additional to those available to another Indemnified Person. 

        (e)   Without
the prior consent of Lender, JPMorgan, CS and BofA (in each case which consent shall not be unreasonably withheld), no Indemnifying Person shall settle or
compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not any
Indemnified Person is an actual or potential party to such claim, action, suit or proceeding) unless the Indemnifying Person shall have given Lender, JPMorgan, CS and BofA, as applicable, reasonable
prior notice thereof and shall have obtained an unconditional release of each Indemnified Person hereunder from all liability arising out of such claim, action, suit or proceedings. As long as an
Indemnifying Person has complied with its obligations to defend and indemnify hereunder, such Indemnifying Person shall not be liable for any 

101

 

settlement
made by any Indemnified Person without the consent of such Indemnifying Person (which consent shall not be unreasonably withheld). 

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

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

        (h)   The
liabilities and obligations of the Indemnified Persons and the Indemnifying Persons under this Section 9.2
shall survive the termination of this Agreement and the satisfaction and discharge of the Debt. 

        (i)    Notwithstanding
anything to the contrary contained herein, Borrower shall not have any obligation to act as depositor with respect to the Loan or an issuer or registrant
with respect to the Securities issued in any Securitization. 

        Section 9.3.    Exculpation.    (a)    Subject to the
qualifications below, Lender shall not enforce any of the liabilities or obligations of Borrower, Principal or Guarantor (except as set forth in the Guaranty and the Environmental Indemnity), or any
other Restricted Party or an Affiliate of any one of the foregoing (collectively, the "Exculpated Parties" and, individually, an
"Exculpated Party") to perform and observe the obligations contained in the Note, this Agreement, the Pledge Agreement or any of the other Loan
Documents (including, solely in the case of Borrower, any indemnification agreement delivered pursuant to Section 9.2(b) hereof), by any action
or proceeding wherein a money judgment shall be sought against Borrower or any other Exculpated Party, except that Lender may bring a foreclosure action, an action for specific performance or any
other appropriate action or proceeding to enable Lender to enforce and realize upon its interest under the Note, this Agreement, the Pledge Agreement and the other Loan Documents, and in the
Collateral or any other collateral given to Lender pursuant to the Loan Documents; provided, however,
that, except as specifically provided herein, any judgment in any such action or proceeding shall be enforceable against Borrower or any other Exculpated Party only to the extent of the interest of
Borrower or of such Exculpated Party, as the case may be, in the Collateral and in any other collateral given to Lender, and Lender, by accepting the Note, this Agreement, the Pledge Agreement and the
other Loan Documents, agrees that it shall not sue for, seek or demand any deficiency judgment against Borrower or any Exculpated Party in any such action or proceeding under, or by reason of, or in
connection with, the Note, this Agreement, the Pledge Agreement or the other Loan Documents. The provisions of this Section shall not, however, 

102

 

(i) constitute
a waiver, release or impairment of any obligation evidenced or secured by any of the Loan Documents; (ii) impair the right of Lender to name Borrower as a party defendant
in any action or suit for foreclosure and sale under any of the Pledge Agreement; (iii) affect the validity or enforceability of or any Guaranty made in connection with the Loan or any of the
rights and remedies of Lender thereunder; (iv) impair the right of Lender to obtain the appointment of a receiver; (v) intentionally omitted; (vi) constitute a prohibition against
Lender to seek a deficiency judgment against Borrower in order to fully realize the security granted by the Pledge Agreement or to commence any other appropriate action or proceeding in order for
Lender to exercise its remedies against all of the Collateral; or (vii) constitute a waiver of the right of Lender to enforce the liability and obligation of Borrower, by money judgment or
otherwise, to the extent of any loss, damage, cost, expense, liability, claim or other obligation incurred by Lender (including reasonable attorneys' fees and disbursements reasonably incurred)
arising out of or in connection with any of the following: 

        (A)  fraud
or intentional misrepresentation by Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Operator, Master Tenant or Guarantor in connection with
the Loan; 

        (B)  damage
to the Properties caused by actual, physical waste by Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Operator or Master Tenant or the
gross negligence or willful misconduct of Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Operator or Master Tenant; 

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

        (D)  the
removal or disposal of any portion of the Properties, the Senior Mezzanine Collateral or the Collateral after and during the continuation of an Event of Default, a
Senior Mezzanine Loan Event of Default or a Mortgage Loan Event of Default; 

        (E)  the
misappropriation or conversion by Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Operator or Master Tenant of (I) any Insurance
Proceeds paid by reason of any Casualty, (II) any Awards received in connection with a Condemnation, (III) any Rents following and during the continuation of an Event of Default,
(IV) any Rents paid more than one (1) month in advance, (V) any Net Liquidation Proceeds After Debt Service or (VI) any amounts disbursed from the Low DSCR Interest Floor
Reserve Account such that they are not used or applied for the express purposes set forth in Section 7.1.2; 

        (F)  if
any or all of the limited liability companies constituting Borrower fails to (i) maintain its status as a Special Purpose Entity, as required by, and in
accordance with, the terms and provisions of this Agreement or (ii) cause Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Principal, Operator or Master Tenant to maintain its
status as a Special Purpose Entity, each as required by, and in accordance with, the terms and provisions of the applicable Senior Mezzanine Loan Agreement or the Mortgage Loan Agreement or the Leases
(in each case except with respect to the obligation to remain solvent, maintain adequate capital and pay its debts as they become due (unless funds are available to pay such debts, and Borrower,
Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Operator, Principal or Master Tenant, as applicable, fails to do so)); 

        (G)  any
amounts actually received by (i) Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, or Master Tenant that are not deposited into the applicable
Senior Mezzanine Deposit Account or the Mortgage Cash Management Account to the extent required to be so deposited pursuant to the applicable Senior Mezzanine Loan Agreement or the Mortgage Loan 

103

 

Agreement
or under the Rent Instruction, the Leases, the applicable Senior Mezzanine Cash Management Agreement or under the Mortgage Cash Management Agreement or (ii) Borrower that are not
deposited into the Seventh Mezzanine Deposit Account to the extent required to be so deposited pursuant to any Loan Document; 

        (H)  if
any or all of the limited liability companies constituting Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner fails to obtain Lender's prior
consent to any Indebtedness for borrowed money or voluntary Liens encumbering the Collateral not otherwise permitted by any Loan Document; and 

        (I)   any
breach of any representation, warranty or covenant in Section 4(b) or (c) of the Pledge Agreement. 

        (b)   Notwithstanding
anything to the contrary in this Agreement, the Note or any of the Loan Documents, (i) Lender shall not be deemed to have waived any right which
Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code to file a claim for the full amount of the Debt secured by the Pledge Agreement or to
require that all collateral shall continue to secure all of the Debt owing to Lender in accordance with the Loan Documents, and (ii) the Debt shall be fully recourse to Borrower (A) in
the event of: (I) any or all of the limited liability companies constituting Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Requisite Operators, Master Tenant or
Guarantor filing a voluntary petition under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (II) any or all of the limited liability companies constituting
Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Requisite Operator, Master Tenant or Guarantor filing an answer consenting to or soliciting or causing to be solicited or
otherwise acquiescing in or joining in any involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other Federal or state bankruptcy or insolvency law, or
soliciting or causing to be solicited petitioning creditors for any involuntary petition from any Person; (III) any or all of the limited liability companies constituting Borrower, Senior
Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Requisite Operators, Master Tenant or Guarantor consenting to or acquiescing in or joining in an application for the appointment of a custodian,
receiver, trustee, or examiner for any of the limited liability companies constituting Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Requisite Operator, Master Tenant or
Guarantor or any portion of the Properties; or (IV) any or all of the limited liability companies constituting Borrower, Mortgage Borrower, Senior Mezzanine Borrower, Maryland Owner, Requisite
Operators, Master Tenant or Guarantor making an assignment for the benefit of creditors, or admitting, in writing or in any legal proceeding, its insolvency or inability to pay its debts as they
become due; (B) Intentionally Omitted; (C) if any or all of the limited liability companies constituting Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Operator
or Master Tenant fails to obtain Lender's prior consent to any Transfer as required by this Agreement or the Mortgages; or (D) if upon the occurrence and during the continuance of an Event of
Default and Lender exercises its remedies on account thereof and accelerates the Loan, Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Master Tenant, Operator, Guarantor or any
other Restricted Party or any Affiliate thereof interferes in any manner with the exercise of any of the rights, powers, privileges and other remedies available to Lender or Servicer under the Loan
Documents or otherwise fails to cooperate (in each case at no cost to Guarantor) to enable Lender to obtain the benefit of, including without limitation, the transfer to Lender or its qualified
designee, or cooperation in each case with Lender with respect to the reissuance to Lender or its designee, of all material Health Care Licenses. As used herein "Requisite
Operators" shall mean more than 10 individual Operators in the aggregate over the term of this Loan, and shall include in the aggregate all individual Operators that were
subject to all subclauses of clause (A) above. 

        Section 9.4.    Servicer.    At the option of Lender, the Loan may be
serviced by a servicer/trustee (the "Servicer") selected by Lender, from time to time, and Lender may delegate all or any portion of 

104

 

its
responsibilities under this Agreement and the other Loan Documents to the Servicer pursuant to a servicing agreement (the "Servicing Agreement")
between Lender and Servicer. Borrower shall be responsible for any reasonable set-up fees or other initial costs relating to or arising under the Servicing Agreement;  provided, however, that Borrower shall not be responsible for the monthly servicing fee due to the
Servicer under the Servicing Agreement. 

        Section 9.5.    Component Notes.    (a)    Lender, without
in any way limiting Lender's other rights hereunder, in its sole and absolute discretion, shall have the right at any time to require Borrower to execute and deliver "component" notes (including
senior and junior notes), which notes, subject to the provisions hereof, may be paid in such order of priority as may be designated by Lender; provided
that, (i) the aggregate principal amount of such "component" notes shall equal the outstanding principal balance of the Loan immediately prior to the creation of such "component" notes,
(ii) the weighted average interest rate spread of all such "component" notes shall on the date created equal the weighted average interest rate spread which was applicable to the Loan
immediately prior to the creation of such "component" notes (other than during the continuance of an Event of Default due to the application of a principal payment), (iii) the aggregate of the
debt service payments on all such "component" notes shall on the date created equal the debt service payment which was due under the Loan immediately prior to the creation of such component notes and
(iv) the other terms and provisions of each of the "component" notes shall be identical in substance and substantially similar in form to the Loan Documents. Except during the continuance of an
Event of Default, all amounts applied to repayment of principal hereunder shall be applied pro rata and pari passu against the portions of the Debt evidenced by the various "component" notes. Borrower
shall cooperate with all reasonable requests of Lender in order to establish the "component" notes and shall execute and deliver such documents as shall reasonably be required by Lender and any Rating
Agency in connection therewith, all in form and substance reasonably satisfactory to Lender and satisfactory to any Rating Agency, provided that such
documents are in form and substance substantially similar to the Loan Documents including the severance of security documents if requested. In the event Borrower fails to execute and deliver such
documents to Lender within ten (10) days following such request by Lender, Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest,
in its name and stead to make and execute all such documents necessary or desirable to effect such transactions, Borrower ratifying all that such attorney shall do by virtue thereof. Upon issuance of
the "component" notes, the original Note(s) shall be returned to Borrower. 

        (b)   With
respect to (i) the period prior to and including the Closing Date, Borrower, and (ii) the period subsequent to the Closing Date, Lender, shall be
responsible for all costs and expenses incurred by Borrower and Lender in connection with Borrower's complying with its obligations under this  Section 9.5 (including legal fees and costs incurred
by Borrower and Lender). 

        (c)   It
shall be an Event of Default under this Agreement, the Note and the other Loan Documents if Borrower fails to comply with any of the terms, covenants or conditions of
this Section 9.5 after the expiration of thirty (30) days notice thereof or such shorter period of time as may be requested by Lender due
to Lender's then current anticipated schedule of any sale, assignment or participation of the Loan (which shorter period of time shall in no event be less than ten (10) days), which notice
shall contain all documentation Borrower is being asked to execute and deliver. 

        Section 9.6.    Mezzanine Loans.    (a)    Lender, without
in any way limiting Lender's other rights hereunder, in its sole and absolute discretion, shall have the right at any time to create one or more mezzanine loans (and to reallocate the Release Amounts
among the Loan and the mezzanine loan(s) on a pro rata basis); provided that (i) the aggregate principal amount of the Loan and such mezzanine
loan(s) shall equal the outstanding principal balance of the Loan immediately prior to the creation of such mezzanine loan(s), (ii) the weighted average interest rate spread of the Loan and all
such mezzanine loan(s) shall on the date created equal the weighted average interest rate spread which was applicable to the Loan immediately prior to the creation of such mezzanine loan(s) (other
than during 

105

 

the
continuance of an Event of Default due to the application of a principal payment) and (iii) the aggregate of the debt service payments on the Loan and all such mezzanine loan(s) shall on
the date created equal the debt service payment which was due under the Loan immediately prior to the creation of such mezzanine loan(s). Except during the continuance of an Event of Default, all
amounts applied to repayment of principal shall be applied pro rata and pari passu to the Loan and such mezzanine loans. Each of Borrower shall cooperate with all reasonable requests of Lender in
order to establish such mezzanine loan(s) and shall execute and deliver such documents as shall reasonably be required by Lender and any Rating Agency in connection therewith, all in form and
substance substantially similar to the applicable Loan Documents and reasonably satisfactory to Lender and satisfactory to any Rating Agency, including the severance of security documents if
requested. Additionally, Borrower shall cause the formation of one or more special-purpose, bankruptcy-remote entities as required by Lender in order to serve as the borrower under any such mezzanine
loan(s), and the applicable organizational documents of Borrower shall be amended and modified as necessary or required in the formation of any such new mezzanine borrower. Further, in connection with
any such new mezzanine loan(s), Borrower shall deliver to Lender opinions of legal counsel with respect to due execution, authority and enforceability of such mezzanine loan(s) and the Loan Documents,
as amended, an Additional Insolvency Opinion for the Loan, a substantive non-consolidation opinion with respect to any such mezzanine loan(s) and such other opinions as are reasonably
requested by Lender, each as reasonably acceptable to Lender and/or the Rating Agencies. Borrower shall also deliver an Eagle-9 (or similar) title insurance policy with respect to the
collateral to be pledged in connection with any such mezzanine loan(s), an endorsement to the owner's title insurance policy and such other agreements and documents as are reasonably requested by
Lender. In the event Borrower fails to execute and deliver such documents to Lender within thirty (30) days following such request by Lender or such shorter period of time as may be requested
by Lender due to Lender's then current anticipated schedule of any Securitization, Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest,
in its name and stead to make and execute all documents necessary or desirable to effect such transactions, each of Borrower ratifying all that such attorney shall do by virtue thereof. 

        (b)   With
respect to (i) the period prior to and including the Closing Date, Borrower, and (ii) the period subsequent to the Closing Date, Lender, shall be
responsible for all costs and expenses incurred by Borrower and Lender in connection with Borrower's complying with its obligations under this  Section 9.6 (including legal fees and costs incurred
by Borrower and Lender). 

        (c)   It
shall be an Event of Default under this Agreement, the Note and the other Loan Documents if Borrower fails to comply with any of the terms, covenants or conditions of
this Section 9.6 after the expiration of thirty (30) days notice thereof or such shorter period of time as may be requested by Lender due
to Lender's then current anticipated schedule of any sale, assignment or participation of the Loan (which shorter period of time shall in no event be less than ten (10) days), which notice
shall contain all documentation Borrower is being asked to execute and deliver. 

        Section 9.7.    Administration of Bankruptcy Claims.    In the event
that the Mortgage Loan is no longer outstanding, Borrower and Lender agree that, with respect to the Master Lease and each Operating Lease with respect to the Properties, each Borrower hereby
transfers, and shall cause Mortgage Borrower and Maryland Owner to transfer, to Lender, in the event of any proceeding involving Master Tenant or any Operator under the Bankruptcy Code or any similar
proceeding, all of such Borrower's, Senior Mezzanine Borrower's, Mortgage Borrower's and Maryland Owner's rights to (a) file any proof of such claims, (b) cast any votes relating to any
claims of such Borrower, Senior Mezzanine Borrower, Mortgage Borrower or Maryland Owner against Master Tenant or such Operator, as the case may be, in such proceedings, (c) collect and receive
any dividends payable with respect to such claims, (d) take any action or commence any proceeding to collect such claims, (e) file any motion for relief from the stay imposed under
Section 362(a) of the Bankruptcy Code or any similar statute, 

106

 

(f) file
any motion to compel Master Tenant or such Operator to assume or reject the applicable Leases under the Bankruptcy Code or any similar statute, or (g) take any other actions to
collect or protect such claims, and Lender shall use commercially reasonable efforts to enforce and exercise such rights. Borrower agrees that Lender shall be the sole party permitted to participate
in the administration of the estate of Master Tenant or Operator under any proceeding under the Bankruptcy Code or any similar statute with respect any such claims. 

        Section 9.8.    Uncross of Properties.    

        If
pursuant to Section 9.8 of the Mortgage Loan Agreement any Affected Property is uncrossed from the Mortgage Loan with the consent of Mortgage Lender as required thereunder (a
"Property Uncross"), Borrower shall cause Mortgage Borrower and Maryland Owner to cooperate with (a) Mortgage Lender in connection with the
obligations of Mortgage Borrower with respect to such Property Uncross and (b) Lender in connection with any corresponding uncrossing or severing of a pro rata portion of the Loan and/or such
other modifications to the Loan as Lender may reasonably require in connection with any Property Uncross, in each case at no cost or expense to Borrower. 

        X.    MISCELLANEOUS    

        Section 10.1.    Survival.    This Agreement and all covenants,
agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the making by Lender of the Loan and the execution and delivery to Lender of the
Note, and shall continue in full force and effect
so long as all or any of the Debt is outstanding and unpaid unless a longer period is expressly set forth herein or in the other Loan Documents. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the legal representatives, successors and assigns of such party. All covenants, promises and agreements in this Agreement, by or on behalf of
Borrower, shall inure to the benefit of the legal representatives, successors and assigns of Lender. 

        Section 10.2.    Lender's Discretion.    Whenever pursuant to
this Agreement, Lender exercises any right given to it to approve or disapprove, or any arrangement or term is to be satisfactory to Lender, the decision of Lender to approve or disapprove or to
decide whether arrangements or terms are satisfactory or not satisfactory shall (except as is otherwise specifically herein provided) be in the sole discretion of Lender and shall be final and
conclusive absent manifest error. Whenever this Agreement expressly provides that Lender may not withhold its consent or its approval of an arrangement or term, such provisions shall also be deemed to
prohibit Lender from delaying or conditioning such consent or approval. 

        Section 10.3.    Governing
Law.    (A)    THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED BY BORROWER IN THE
STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO
THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT, THE
NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS
MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND ANY APPLICABLE LAW OF THE
UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER
LOAN DOCUMENTS (EXCEPT THAT  

107

 

 THE CREATION OF A SECURITY INTEREST IN ALL PERSONAL PROPERTY (INCLUDING WITHOUT LIMITATION THE ACCOUNTS) SHALL BE GOVERNED BY ARTICLE 9 OF THE UCC AS IN EFFECT IN THE STATE OF NEW YORK AND THE
PERFECTION AND PRIORITY OF WHICH SHALL BE GOVERNED BY THE LAW OF THE JURISDICTION APPLICABLE THERETO IN ACCORDANCE WITH SECTIONS 9-301 THROUGH 9-307 OF THE UCC AS IN
EFFECT IN THE STATE OF NEW YORK) SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE APPLICABLE INDIVIDUAL PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST
EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING
HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF LENDER AND BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION
GOVERNS THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

        (B)  ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS MAY AT
ANY SUCH PARTY'S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW
AND EACH PARTY WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND EACH PARTY HEREBY IRREVOCABLY SUBMITS TO
THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT:

CT Corporation System

111 Eighth Avenue

New York, New York 10011  

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

        Section 10.4.    Modification, Waiver in Writing.    No
modification, amendment, extension, discharge, termination or waiver of any provision of this Agreement, or of the Note, or of any other Loan Document, nor consent to any departure by Borrower
therefrom, shall in any event be effective unless the same shall be in a writing signed by the party against whom enforcement is sought, and then such waiver or consent shall be effective only in the
specific instance, and for the purpose, for which given. 

108

 

Except
as otherwise expressly provided herein, no notice to, or demand on Borrower, shall entitle Borrower or Lender to any other or future notice or demand in the same, similar or other
circumstances. 

        Section 10.5.    Delay Not a Waiver.    Neither any failure nor
any delay on the part of Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under the Note or
under any other Loan Document, or any other instrument given as security therefor, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other
future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by way of limitation, by accepting payment after the due date of any amount payable under this
Agreement, the Note or any other Loan Document, Lender shall not be deemed to have waived any right either to require prompt payment of all other amounts due under this Agreement, the Note or the
other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount. 

        Section 10.6.    Notices.    All notices, consents, approvals
and requests required or permitted hereunder or under any other Loan Document shall be given in writing and shall be effective for all purposes if hand delivered or sent by (a) certified or
registered United States mail, postage prepaid, return receipt requested or (b) expedited prepaid delivery service, either commercial or United States Postal Service, with proof of attempted
delivery, addressed as follows (or at such other address and Person as shall be designated from time to time by any party hereto, as the case may be, in a notice to the other parties hereto in the
manner provided for in this Section 10.6): 

	If to Lender:	 	JPMorgan Chase Bank, N.A.

c/o Centerline Servicing Inc.

5221 N. O'Connor Blvd., Suite 600

Irving, Texas 75039

Attention: John Roach

Senior Vice President, Asset Management
	

and:	
 	

Column Financial, Inc.

11 Madison Avenue

New York, New York 10010

Attention: Susana Iannicelli
	

with a copy to:	
 	

Column Financial, Inc.

One Madison Avenue

New York, New York 10019

Legal and Compliance Department

Attention: Casey McCutcheon, Esq.
	

and:	
 	

Bank of America, N.A.

Capital Markets Servicing Group

900 West Trade Street, Suite 650

Mail Code: NC1-026-06-01

Charlotte, North Carolina 28255

Telephone: (866) 531-0957
	

with a copy to:	
 	

Cadwalader, Wickersham & Taft LLP

One World Financial Center

New York, New York 10281

Attention: Fredric L. Altschuler, Esq. and

Steven M. Herman, Esq.

109

 

	

If to Borrower:	
 	

HCR VII Properties, LLC

333 N. Summit Street

Toledo, Ohio 43604

Attention: Chief Legal Officer
	

with a copy to:	
 	

HCR VII Properties, LLC

333 N. Summit Street

Toledo, Ohio 43604

Attention: Chief Financial Officer
	

and:	
 	

Latham & Watkins LLP

885 Third Avenue

New York, New York 10022

Attention: James I. Hisiger, Esq.

A
notice shall be deemed to have been given: (i) in the case of hand delivery, at the time of delivery on a Business Day, or if not a Business Day, the next succeeding Business Day;
(ii) in the case of registered or certified mail, three (3) Business Days after transmittal; or (iii) in the case of expedited prepaid delivery, upon the first Business Day
subsequent to transmittal. 

        Section 10.7.    Trial by Jury.    EACH PARTY HEREBY AGREES NOT
TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN
DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY EACH PARTY, AND IS INTENDED TO
ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING
AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY EACH PARTY. 

        Section 10.8.    Headings.    The Article and/or Section
headings and the Table of Contents in this Agreement or in any other Loan Document are included herein and therein for convenience of reference only and shall not constitute a part of this Agreement
or any other Loan Document for any other purpose. 

        Section 10.9.    Severability.    Wherever possible, each
provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 

        Section 10.10.    Preferences.    Upon the occurrence and
during the continuance of an Event of Default, Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the obligations
of Borrower hereunder. To the extent Borrower makes a payment or payments to Lender, which payment or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such
payment or proceeds received, the obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been
received by Lender. 

        Section 10.11.    Waiver of Notice.    Borrower hereby
expressly waives, and shall not be entitled to, any notices of any nature whatsoever from Lender except with respect to matters for which this 

110

 

Agreement
or the other Loan Documents specifically and expressly provide for the giving of notice by Lender to Borrower and except with respect to matters for which Borrower is not, pursuant to
applicable Legal Requirements, permitted to waive the giving of notice. 

        Section 10.12.    Remedies of Borrower.    In the event that a
claim or adjudication is made that Lender or its agents have acted unreasonably or unreasonably delayed acting in any case where by law or under this Agreement or the other Loan Documents, Lender or
such agent, as the case may be, has an obligation to act reasonably or promptly, Borrower agrees that neither Lender nor its agents shall be liable for any monetary damages, and Borrower's sole
remedies shall be limited to commencing an action seeking injunctive relief or declaratory judgment. The parties hereto agree that any action or proceeding to determine whether Lender has acted
reasonably shall be determined by an action seeking declaratory judgment. 

        Section 10.13.    Expenses;
Indemnity.    (a)    Borrower covenants and agrees to pay or, if Borrower fails to pay, to reimburse Lender within ten (10) Business Days of demand
therefor by Lender for all reasonable costs and expenses (including reasonable attorneys' fees and disbursements) incurred by Lender in connection with (i) the preparation, negotiation,
execution and delivery of this Agreement and the other
Loan Documents and the consummation of the transactions contemplated hereby and thereby and all the costs of furnishing all opinions by counsel for Borrower (including any opinions requested by Lender
as to any legal matters arising under this Agreement or the other Loan Documents with respect to the Collateral); (ii) Borrower's ongoing performance of and compliance with Borrower's
respective agreements and covenants contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date, including confirming compliance with
environmental, healthcare and insurance requirements; (iii) Lender's ongoing performance and compliance with all agreements and conditions contained in this Agreement and the other Loan
Documents on its part to be performed or complied with after the Closing Date; (iv) the negotiation, preparation, execution, delivery and administration of any consents, amendments, waivers or
other modifications to this Agreement and the other Loan Documents and any other documents or matters reasonably requested by Lender; (v) securing Borrower's compliance with any requests made
pursuant to the provisions of this Agreement; (vi) the filing and recording fees and expenses, title insurance and reasonable fees and expenses of counsel for providing to Lender all required
legal opinions, and other similar expenses incurred in creating and perfecting the Liens in favor of Lender pursuant to this Agreement and the other Loan Documents; (vii) enforcing or
preserving any rights, either in response to third party claims or in prosecuting or defending any action or proceeding or other litigation, in each case against, under or affecting Borrower, this
Agreement, the other Loan Documents, the Collateral, or any other security given for the Loan; and (viii) enforcing any obligations of or collecting any payments due from Borrower under this
Agreement, the other Loan Documents or with respect to the Collateral or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a
"work-out" or of any insolvency or bankruptcy proceedings; provided, however, that Borrower
shall not be liable for the payment of any such costs and expenses to the extent the same arise by reason of the gross negligence, illegal acts, fraud or willful misconduct of Lender. Any cost and
expenses due and payable to Lender may be paid from any amounts in the First Mezzanine Deposit Account. For the avoidance of doubt, nothing in this  Section 10.13(a) is intended to obligate Borrower
to pay any costs or expenses which Lender is expressly obligated to pay under  Section 9.5, 9.6 or 9.8
or any other provision of
this Agreement as well as any other costs incurred after the Closing Date relating to a Securitization. 

        (b)   Borrower
shall indemnify, defend and hold Lender harmless from and against any and all other liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including, the reasonable fees and disbursements of counsel for Lender), that may be imposed on, incurred by, or
asserted against Lender in any manner relating to or arising out of (i) any breach by Borrower of its obligations under, or any material 

111

 

misrepresentation
by Borrower contained in, this Agreement or the other Loan Documents, (ii) the use or intended use of the proceeds of the Loan, (iii) all paid and unpaid liability
claims, including Medicare and Medicaid claims, in connection with the Properties and any other prior liability of the Prior Owners, (iv) the Interest Rate Cap Agreement or any of the duties,
responsibilities or obligations of Borrower thereunder, (v) the Leases or any of the duties, responsibilities or obligations of Mortgage Borrower, Master Tenant or any Operator thereunder or
(vi) the transactions contemplated by the Cash Management Agreement (collectively, the "Indemnified Liabilities");  provided, however, that Borrower shall not have any obligation to Lender hereunder to the extent that
such Indemnified Liabilities arise from the gross negligence, illegal acts, fraud or willful misconduct of Lender. To the extent that the undertaking to indemnify, defend and hold harmless set forth
in the preceding sentence may be unenforceable because it violates any law or public policy, Borrower shall pay the maximum portion that it is permitted to pay and satisfy under applicable law to the
payment and satisfaction of all Indemnified Liabilities incurred by Lender. 

        (c)   Borrower
covenants and agrees to pay for or, if Borrower fails to pay, to reimburse Lender for (other than pursuant to  Section 10.13(a)), any fees and expenses incurred by any Rating Agency in connection
with any Rating Agency review of the Loan, the Loan
Documents or any transaction contemplated thereby or any consent, approval, waiver or confirmation obtained from such Rating Agency pursuant to the terms and conditions of this Agreement or any other
Loan Document and Lender shall be entitled to require payment of such fees and expenses as a condition precedent to the obtaining of any such consent, approval, waiver or confirmation. 

        Section 10.14.    Schedules Incorporated.    The Schedules
annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof. 

        Section 10.15.    Offsets, Counterclaims and Defenses.    Any
assignee of Lender's interest in and to this Agreement, the Note and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such
documents which Borrower may otherwise have against any assignor of such documents, and no such unrelated counterclaim or defense shall be interposed or asserted by Borrower in any action or
proceeding brought by any such assignee upon such documents and any such right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby
expressly waived by Borrower. 

        Section 10.16.    No Joint Venture or Partnership; No Third Party
Beneficiaries.    (a)    Borrower and Lender intend that the relationships created hereunder and under the other Loan Documents be solely that of borrower
and lender. Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender nor to
grant Lender any interest in the Properties other than that of mortgagee, beneficiary or lender. 

        (b)   This
Agreement and the other Loan Documents are solely for the benefit of Lender and Borrower, and nothing contained in this Agreement or the other Loan Documents shall
be deemed to confer upon anyone other than Lender and Borrower any right to insist upon or to enforce the performance or observance of any of the obligations contained herein or therein. All
conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit of Lender and no other Person shall have standing to require satisfaction of such
conditions in accordance with their terms or be entitled to assume that Lender will refuse to make the Loan in the absence of strict compliance with any or all thereof and no other Person shall under
any circumstances be deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender's sole discretion, Lender deems it advisable or
desirable to do so. 

112

 

  
        Section 10.17.    Publicity.    All news releases, publicity or
advertising by Borrower or its Affiliates through any media intended to reach the general public which refers to the Loan Documents or the financing evidenced by the Loan Documents, Lender, Column,
BofA or any of their respective Affiliates shall be subject to the prior reasonable approval of Lender. All news releases, publicity or advertising by Lender or its Affiliates which refers to Carlyle
and Affiliates of Carlyle other than Manor Care and Manor Care's direct and indirect Subsidiaries, shall, except as specified in the next succeeding sentence, be subject to the prior reasonable
approval of Borrower. For the avoidance of doubt, the mere identification by Lender or Borrower of the Carlyle Group as the sponsor of Borrower in any such release, publicity or advertising shall not
require Borrower's or Lender's consent. 

        Section 10.18.    Cross-Default; Cross-Collateralization; Waiver of Marshalling of
Assets.    (a) Borrower acknowledges that Lender has made the Loan to Borrower upon the security of its collective interest in the Collateral and in reliance
upon the aggregate of the Collateral taken together being of greater value as collateral security than the sum of each Borrower's Collateral taken separately. Borrower agrees that portions of the
Collateral cross-collateralize and cross-default with other portions of the Collateral so that (i) an Event of Default constitutes an Event of Default with respect to each Borrower's pledge of
Collateral under the Pledge Agreement which secures the Note; (ii) an Event of Default that is continuing under the Note or this Loan Agreement shall constitute an Event of Default under the
Pledge Agreement; (iii) the Pledge Agreement shall constitute security for the Note as if a single blanket lien were placed on all of the Collateral as security for the Note; and
(iv) such cross-collateralization shall in no event be deemed to constitute a fraudulent conveyance. 

        (b)   To
the fullest extent permitted by law, Borrower, for itself and its successors and assigns, waives all rights to a marshalling of the assets of Borrower, Borrower's
members and others with interests in Borrower, and of the Collateral, or to a sale in inverse order of alienation in the event of foreclosure upon the Collateral, and agrees not to assert any right
under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates of decedents, or any other matters whatsoever to
defeat, reduce or affect the right of Lender under the Loan Documents to a sale of the Collateral for the collection of the Debt without any prior or different resort for collection or of the right of
Lender to the payment of the Debt out of the net proceeds of the Collateral in preference to every other claimant whatsoever. In addition, Borrower, for itself and its successors and assigns, waives
in the event of foreclosure upon any or all of the Collateral, any equitable right otherwise available to Borrower which would require the separate sale of any portion of the Collateral or require
Lender to exhaust its remedies against any portion of the Collateral before proceeding against any other portion of the Collateral; and further in the event of such foreclosure Borrower does each
hereby expressly consent to and authorize, at the option of Lender, the foreclosure and sale either separately or together with any of the Collateral. 

        Section 10.19.    Waiver of Counterclaim.    Borrower hereby waives
the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Lender or its agents. 

        Section 10.20.    Conflict; Construction of Documents; Reliance.    In
the event of any conflict between the provisions of this Loan Agreement and any of the other Loan Documents, the provisions of this Loan Agreement shall control. The parties hereto acknowledge that
they were represented by competent counsel in connection with the negotiation, drafting and execution of the Loan Documents and that such Loan Documents shall not be subject to the principle of
construing their meaning against the party which drafted same. Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering into the
Loan without relying in any manner on any statements, representations or recommendations of Lender or any parent, subsidiary or Affiliate of Lender. Lender shall not be subject to any limitation
whatsoever in the exercise of any rights or remedies available to it under any of the Loan Documents or any other agreements or instruments which govern the Loan by virtue of the ownership by it or
any parent, subsidiary or Affiliate of Lender 

113

 

of
any equity interest any of them may acquire in Borrower, and Borrower hereby irrevocably waives the right to raise any defense or take any action on the basis of the foregoing with respect to
Lender's exercise of any such rights or remedies. Borrower acknowledges that Lender engages in the business of real estate financings and other real estate transactions and investments which may be
viewed as adverse to or competitive with the business of Borrower or its Affiliates. 

        Section 10.21.    Brokers and Financial Advisors.    Borrower hereby
represents that it has dealt with no advisors, brokers, underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement other than Lender,
JPMorgan, CS and BofA and their respective Affiliates. Borrower hereby agrees to indemnify, defend and hold Lender harmless from and against any and all claims, liabilities, costs and expenses of any
kind (including Lender's reasonable attorneys' fees and expenses) in any way relating to or arising from a breach of the representation set forth in this  Section 10.21. The provisions of this
Section 10.21 shall survive the expiration and
termination of this Agreement and the payment of the Debt. 

        Section 10.22.    Prior Agreements.    This Agreement and the other
Loan Documents contain the entire agreement of the parties hereto and thereto in respect of the transactions contemplated hereby and thereby, and all prior agreements among or between such parties,
whether oral or written, including the Commitment Letter dated July 2, 2007 among Borrower, Lender, JPMorgan Securities Inc., Column, Credit Suisse Securities (USA) LLC, Credit
Suisse Cayman Islands Branch, BofA, Bank of America Securities LLC and Mergerco are superseded by the terms of this Agreement and the other Loan Documents. 

        Section 10.23.    Authority to File.    In connection with this
Agreement and the transactions contemplated hereby, Borrower does hereby authorize Lender to file with the Secretary of State of the State of Delaware, the "all assets" UCC-1 Financing
Statement attached hereto as Schedule 10.23,
which UCC-1 Financing Statement names the Borrower as debtor and Lender as secured party. 

        Section 10.24.    Agent's Register.    Lender, in its capacity as
collateral agent (the "Registrar"), and, solely for this purpose, as non-fiduciary agent of Borrower, shall, at no cost to Borrower,
maintain a register (the "Agent's Register") showing the names and addresses of the Noteholders and the principal amount of the Loan (and the stated
interest thereon (the "Registered Loan")) held by the Noteholders from time to time. The entries in Agent's Register shall be conclusive, in the absence
of manifest error, and Borrower, Maryland Owner, Lender and the other Noteholders shall treat each Person whose name is recorded in Agent's Register as the owner the Note for all purposes of this
Agreement and the other Loan Documents, notwithstanding any notice to the contrary. Any assignment of the Note shall be effective only upon appropriate entries with respect thereto being made in the
Agent's Register. The Agent's Register shall be available for inspection by Borrower, Maryland Owner or any Noteholder at any reasonable time and from time to time upon reasonable prior notice. A
Registered Loan (and the registered note, if any, evidencing the same) may be assigned or sold in whole or in part only by registration of such assignment or sale on the Agent's Register, which
registration the Registrar shall effect immediately upon receipt of assignment documentation. Any assignment or sale of all or part of such Registered Loan (and the registered note, if any evidencing
the same) may be effected only by registration of such assignment or sale on the Agent's Register, together with the surrender of the registered note, if any, evidencing the same duly endorsed by (or
accompanied by a written instrument of assignment or sale duly executed by) the holder of such registered note, whereupon, at the request of the designated assignee(s) or transferee(s), one or more
new registered notes in the same aggregate principal amount shall be issued to the designated assignee(s) or transferee(s). Prior to the registration of assignment or sale of any Registered Loan (and
the registered note, if any, evidencing the same), Borrower shall treat the Person in whose name such Registered Loan (and the registered note, if any evidencing the same) is registered as the owner
thereof for the purpose of receiving all payments thereon and for all other purposes. 

114

 

        Section 10.25.    Disclosure.    Borrower authorizes Lender and each
other Noteholder to disclose to any participant or assignee of Lender or such Noteholder and any prospective participant or assignee of Lender or such other Noteholder and the Rating Agencies and
their respective counsel, any and all financial and other information in Lender's or such other Noteholder's possession concerning any Restricted Party and their respective Affiliates which has been
delivered by or on behalf of and at the direction of such Restricted Party or otherwise obtained in connection with the Loan, together with any or all of the Loan Documents and any reports, studies,
appraisals or other matters provided or obtained by Lender or such other Noteholder in connection with the Loan. Notwithstanding any provision hereof to the contrary (including any confidentiality
obligations between Borrower and its Affiliates, on the one hand, and Lender and its Affiliates on the other hand), Borrower, and its subsidiaries and Affiliates that are a party to the Master Lease
and the subleases thereunder acknowledge and agree that, to the extent necessary to comply with any applicable law or any rule or regulation (including accounting rules and regulations) promulgated by
any governmental authority, Lender (including its Affiliates, successors and assigns) shall be entitled to publicly disclose (i) any information relating to the Loan, the Collateral, the Senior
Mezzanine Collateral, the Properties, the Borrower, the Senior Mezzanine Borrower, the Mortgage Borrower, its subsidiaries and its Affiliates
that are a party to the Master Lease and the subleases thereunder required by applicable law, rule or regulation (including accounting rules and regulations) as the same may be amended from time to
time, and (ii) metrics relating to the Loan, the Collateral, the Senior Mezzanine Collateral and the Properties of the type described on  Schedule 10.25 attached hereto or any substantially
similar information relating to the Loan, the Collateral, the Senior Mezzanine Collateral and
the Properties (collectively, the "Public Information") to the extent such information is in Lender's possession;  provided, however, that, (x) except as expressly permitted above, this provision shall not permit
public disclosure of any financial statements of Borrower or its Affiliates or any information other than the Public Information and (y) this sentence shall not obligate Borrower and its
Affiliates to provide any information or complete any property appraisals not otherwise required by the Loan Agreement. 

        Section 10.26.    Pledges.    For the avoidance of doubt, the parties
to this Agreement acknowledge that Lender and each Noteholder is expressly permitted to pledge, hypothecate and create security interests in the Loan and the Note, including, without limitation, to
any Federal Reserve Bank or other central bank or similar institution in accordance with applicable law. 

        Section 10.27.    Lender; Collateral Agent.    The parties hereto
acknowledge and agree that notwithstanding anything contained in this Agreement or in any other Loan Document to the contrary, (a) the Noteholders are advancing the Loan to Borrower hereunder,
and Lender is acting in the capacity as collateral agent for the Noteholders for all purposes under the Loan Documents, and (b) any statement in any Loan Document to the effect that Lender is
making or advancing the Loan shall be construed to mean that the Noteholders are making or advancing the Loan. 

        Section 10.28.    Certain Additional Rights of Lender
(VCOC).    Notwithstanding anything to the contrary contained in this Agreement, Lender shall have: 

        (a)   the
right to periodically consult with and offer advice to Borrower's management regarding the significant business activities and business and financial developments of
Borrower; provided, however, that any such consultations shall not be binding on Borrower and  provided,
further, that such consultations shall not include discussions of environmental compliance
programs or disposal of hazardous substances; 

        (b)   the
right, subject to and in accordance with the terms of this Agreement, to examine the books and records of Borrower at any reasonable times upon reasonable notice; 

        (c)   the
right, subject to and in accordance with the terms of this Agreement, including, without limitation,  Section 5.1.11 hereof, to receive quarterly and year-end financial reports, including balance

115

 

sheets,
statements of income, shareholder's equity and cash flow, a management report and schedules of outstanding indebtedness; 

        (d)   subject
to and in accordance with the Mortgage Loan Agreement, the right, without restricting any other rights of Lender under this Agreement (including any similar
right), to approve any acquisition by Mortgage Borrower of any other significant property (other than personal property required for the day to day operation of the Property); and 

        (e)   the
rights described above may be exercised by any entity which owns and controls, directly or indirectly, substantially all of the interests in Lender. 

        Section 10.29.    Lost Note.    In the event that the Note shall be
lost or destroyed, or Lender shall otherwise be unable to locate same, then Borrower shall, within five (5) Business Days after request, at no cost to Borrower, execute and deliver to Lender a
replacement Note or Notes in the same form as the original Note, and such replacement Note or Notes shall, for all purposes of the Loan Documents, constitute the "Note". In such event, Lender shall
deliver to Borrower a lost note affidavit and indemnification in customary form. 

        Section 10.30.    Maryland Owner.    The parties acknowledge and agree
that Maryland Owner is not a Borrower hereunder and is not an obligor of the Debt. 

        Section 10.31.    Tax Election.    Notwithstanding anything to the
contrary contained herein, HCR IV Healthcare, LLC shall have the right, at its option, to elect to be taxed as a corporation. 

        XI.    OKLAHOMA FACILITIES    

        Section 11.1.    Definitions.    For purposes of this
Article XI: 

        "Four Seasons" shall mean Four Seasons Nursing Center, Inc., a Delaware corporation and a direct wholly owned subsidiary of HCR
Healthcare, LLC. 

        "Oklahoma Conditions" shall mean that (a) all Oklahoma CONs and Oklahoma Licenses shall have been issued; (b) all Oklahoma
Sub-Subleases shall have been terminated and Four Seasons shall have surrendered possession of the Oklahoma Facilities to the Oklahoma Operators; (c) all agreements entered into
between the Receiver and Affiliates of Borrower and Maryland Owner shall have been terminated; (d) all Oklahoma Operators shall have entered into all necessary agreements to receive all
payments from Government Payor and all applicable private payor entities with respect to the Oklahoma Facilities; and (e) all Oklahoma Operators shall have taken all steps necessary to
terminate and confirm the termination of, all rights of the Receiver with respect to the Oklahoma Facilities and all such rights of the Receiver shall have terminated. 

        "Oklahoma Facilities" shall mean, individually and collectively, as the context requires, each of ManorCare Health
Services—Northwest located at 5301 North Brookline, Oklahoma City, Oklahoma; ManorCare Health Services—Southwest located at 5600 South Walker, Oklahoma City, Oklahoma;
ManorCare Health Services—Midwest located at 2900 Parklawn Drive, Midwest City, Oklahoma; and ManorCare Health Services—Tulsa located at 2425 South Memorial Drive, Tulsa,
Oklahoma. 

        "Oklahoma Operators" shall mean, individually and collectively, as the context requires, each of Manor Care of Midwest City
OK, LLC, Manor Care of Oklahoma City (Northwest), LLC, Manor Care of Oklahoma City (Southwest), LLC, and Manor Care of Tulsa OK, LLC. 

        "Oklahoma Order Appointing Receiver" shall mean that certain order dated December 20, 2007 and entered by the District Court of
Oklahoma County, State of Oklahoma, appointing the Receiver as receiver of the Oklahoma Facilities. 

116

 

        "Oklahoma Sub-Subleases" shall mean those four (4) certain subleases dated as of the date hereof entered into by each
of the Oklahoma Operators, as sublandlords thereunder, in each case with Four Seasons, as subtenant. 

        "Receiver" shall mean Healing Solutions, LLC, an Oklahoma limited liability company in which Marissa Lane (or her successor) is the
managing member, as appointed receiver of the Oklahoma Facilities by the District Court of Oklahoma County, State of Oklahoma pursuant to the Oklahoma Order Appointing Receiver. 

        Section 11.2.    Representations and Warranties.    Borrower
represents and warrants as of the Closing Date that: 

        (a)   Borrower
has caused Mortgage Borrower and Maryland Owner to deliver to Lender true and complete copies of (i) the Oklahoma Order Appointing Receiver; and
(ii) the Verified Unopposed Petition for Appointment of Receiver filed by HCR Manor Care Services, Inc. in connection therewith. Other than an Oath of the Receiver and a Receiver's Bond,
no additional pleadings were filed in connection with the Oklahoma Order Appointing Receiver. There are no written agreements or orders modifying, amending, supplementing or restating such order or
verified petition. 

        (b)   The
Receiver is the holder of the initial licenses needed to continue operations of the Oklahoma Facilities while proceedings on applications for certificates of need
(collectively, the "Oklahoma CONs") and licenses for the ownership and operation of the Oklahoma Facilities (collectively, the
"Oklahoma Licenses") submitted by the Oklahoma Operators are pending before the Oklahoma State Department of Health (the
"Oklahoma DOH"). Appointment of the Receiver will enable the Oklahoma Facilities to continue to provide resident care in compliance with Oklahoma law
while the proceedings in the Oklahoma DOH for approval of the Oklahoma CONs and issuance of the Oklahoma Licenses are completed. Under Oklahoma law, the Oklahoma DOH will have the ability to issue the
Oklahoma CONs and the Oklahoma Licenses on or about December 21, 2007, and Borrower and Maryland Owner expect that same will be issued on or about said date, and have no reason to expect any
unreasonable delay in said issuance. Upon the issuance of the Oklahoma CONs and the Oklahoma Licenses, Borrower shall cause Mortgage Borrower and Maryland Owner to cause the filing of all pleadings
necessary to terminate the receivership. 

        (c)   The
Oklahoma Sub-Subleases (together with any certificates and notifications entered into in connection therewith) provided to Lender on the Closing Date are
true, correct, accurate and complete copies of such documents and constitute the entire agreement between the parties thereto with respect to the subject matter thereof and there are no written
agreements modifying, amending, supplementing or restating such documents. No Rent under the Oklahoma Sub-Subleases has been paid more than one (1) month in advance of its due date,
and no Rents or charges under the Oklahoma Sub-Subleases have been waived, released or otherwise discharged or compromised. There has been no prior Transfer of the Oklahoma
Sub-Subleases or of the Rents thereunder. Neither any Oklahoma Operator nor Four Seasons has assigned its respective interest under any Oklahoma Sub-Sublease, nor, other than
pursuant to a Non-Material Lease, sublet all or any portion of any Oklahoma Facility except to residents of the applicable Oklahoma Facility. No Operator, nor to Borrower's, Mortgage
Borrower's, Maryland Owner's or Master Tenant's knowledge any other Person, has a right or option pursuant to any Oklahoma Sub-Sublease or otherwise to purchase all or any part of any
Oklahoma Facility. 

        Section 11.3.    Covenants.    Borrower hereby covenants and agrees
with Lender that:(a) Borrower shall cause Mortgage Borrower and Maryland Owner to use commercially reasonable efforts to cause the Oklahoma Conditions to be satisfied as soon as reasonably
practicable. Borrower shall keep Lender apprised of the status of Mortgage Borrower's and Maryland Owner's efforts to satisfy the Oklahoma Conditions. Within ten (10) days after the
satisfaction of the Oklahoma Conditions, Borrower shall give Lender notice thereof; and 

117

 

        (b)   Borrower
shall not permit Mortgage Borrower or Maryland Owner to take or allow to exist, or suffer or permit to be taken or exist, any action or state of facts with
respect to any Oklahoma Sub-Sublease which, under the terms of this Agreement, it would be prohibited from taking or allowing to exist, or suffering or permitting to be taken or exist, as
applicable, with respect to any Operating Lease subject in each case to the rights of the Receiver. 

        Section 11.4.    Relationship to Other Provisions.    Notwithstanding
anything to the contrary contained in this Agreement or in any other Loan Document, neither the existence of the state of facts recited in this Article XI, nor the taking of any action required
or expressly permitted under this Article XI, shall in and of itself constitute a breach of any representation or warranty contained elsewhere in this Agreement or in any other Loan Document,
or a breach or violation of any other term of this Agreement or any other Loan Document or otherwise constitute a default hereunder or thereunder. 

        [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

118

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

	 	 	BORROWER:
	

 	
 	
HCR VII PROPERTIES, LLC, a Delaware limited

    liability company
	 	 	 

By:	 

    
 Name:

Title:
	 	 	  
 LENDER:
	

 	
 	
JPMORGAN CHASE BANK, N.A., a banking

    association chartered under the laws of the

    United States of America
	 	 	 

By:	 

    
 Name:

Title:

 

 
 

SCHEDULE 2.2.9    
    
    FORM OF SECTION 2.2.9 CERTIFICATE    
    

        Reference is hereby made to the LOAN AGREEMENT, dated as of December 21, 2007, between HCR VII Properties, LLC
("Borrower") and JPMorgan Chase Bank, N.A. (the "Lender") (the
"Agreement"). Pursuant to the provisions of Section 2.2.9 of the Agreement, the undersigned hereby certifies that: 

	1.
	It
is a                        natural individual person,
                        treated as a corporation for U.S. federal income tax purposes,
                        disregarded for federal income tax
purposes (in which case a copy of this Section 2.2.9 Certificate is attached in respect of its sole beneficial owner),
or                        treated as a partnership for U.S. federal income tax
purposes (one must be checked).

	2.
	It
is the beneficial owner of amounts received pursuant to the Agreement.

	3.
	It
is not a bank, as such term is used in section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the "Code"),  or the Agreement is not,
with respect to the undersigned, a loan agreement entered into in the ordinary course of its trade or business, within the
meaning of such section.

	4.
	It
is not a 10-percent shareholder of Borrower within the meaning of section 871(h)(3) or 881(c)(3)(B) of the Code.

	5.
	It
is not a controlled foreign corporation that is related to Borrower within the meaning of section 881(c)(3)(C) of the Code.

	6.
	Amounts
paid to it under the Loan Documents (as defined in the Agreement) are not effectively connected with its conduct of a trade or business in the United States. 

	 	 	  

[NAME OF UNDERSIGNED]
	

 	

 	

By:	

    

	

 	

 	

Title:	

    

	Date:	                                ,
            	 	 

 
 

SCHEDULE 9.1(iii)    
    
    MATTERS COVERED BY 10b-5 OPINION    
    

        Any and all sections of and descriptions contained in the applicable offering materials relating to any Provided Information or any information regarding any of
Borrower, Senior Mezzanine Borrower, Mortgage Borrower, Maryland Owner, Master Tenant, Operator, Guarantor or any of their respective Affiliates, the Collateral, the Properties and Health Care
Requirements or regulatory matters (excluding financial and statistical information). 

 
 

SCHEDULE 10.25

	1.
	Portfolio
metrics 
	a.
	Property
count 
	b.
	Location
(number of states) 
	c.
	Investment

	d.
	Beds/units

	e.
	Square
feet 
	f.
	Portfolio
occupancy 
	g.
	Portfolio
age

	2.
	Credit
metrics 
	a.
	Loan
pricing (coupon and yield-to-maturity) 
	b.
	Term

	c.
	Loan-to-value

	d.
	Debt
service coverage

	3.
	Quality
mix of portfolio 
	a.
	Private
pay 
	b.
	Medicare 
	c.
	Medicaid 

QuickLinks

Exhibit 10.30

TABLE OF CONTENTS

SCHEDULE 2.2.9 FORM OF SECTION 2.2.9 CERTIFICATE

SCHEDULE 9.1(iii) MATTERS COVERED BY 10b-5 OPINION

SCHEDULE 10.25QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

Exhibit 10.31    
    

 

  
    FORM OF INTERCREDITOR AGREEMENT  

by and among 

JPMORGAN CHASE BANK, N.A., as Senior Lender 

and 

JPMORGAN CHASE BANK, N.A., as First Mezzanine Lender 

and 

JPMORGAN CHASE BANK, N.A., as Second Mezzanine Lender 

and

JPMORGAN CHASE BANK, N.A., as Third Mezzanine Lender 

and

JPMORGAN CHASE BANK, N.A., as Fourth Mezzanine Lender 

and 

JPMORGAN CHASE BANK, N.A., as Fifth Mezzanine Lender 

and

JPMORGAN CHASE BANK, N.A., as Sixth Mezzanine Lender 

and

JPMORGAN CHASE BANK, N.A., as Seventh Mezzanine Lender 

Dated
as of December 21, 2007 

 

  FORM OF INTERCREDITOR AGREEMENT  

        THIS INTERCREDITOR AGREEMENT (this "Agreement"), dated as of
December 21, 2007, by and among JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America
(together with its successors and assigns, "Senior Lender"), as collateral agent for itself and the other Senior Noteholders (as defined below),  JPMORGAN CHASE BANK, N.A.,
 a banking association chartered under the laws of the United States of America (together with its successors and
assigns, "First Mezzanine Lender"), as collateral agent for itself and the other First Mezzanine Noteholders (as defined below),  JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America (together with its successors and
assigns, "Second Mezzanine Lender"), as collateral agent for itself and the other Second Mezzanine Noteholders (as defined below),  JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America (together with its successors and
assigns, "Third Mezzanine Lender"), as collateral agent for itself and the other Third Mezzanine Noteholders (as defined below),  JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America (together with its successors and
assigns, "Fourth Mezzanine Lender"), as collateral agent for itself and the other Fourth Mezzanine Noteholders (as defined below),  JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America (together with its successors and
assigns, "Fifth Mezzanine Lender"), as collateral agent for itself and the other Fifth Mezzanine Noteholders (as defined below),  JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America (together with its successors and
assigns, "Sixth Mezzanine Lender"), as collateral agent for itself and the other Sixth Mezzanine Noteholders (as defined below), and  JPMORGAN CHASE BANK, N.A.,
 a banking association chartered under the laws of the United States of America (together with its successors and
assigns, "Seventh Mezzanine Lender"), as collateral agent for itself and the other Seventh Mezzanine Noteholders (as defined below). First Mezzanine
Lender, Second Mezzanine Lender, Third Mezzanine Lender, Fourth Mezzanine Lender, Fifth Mezzanine Lender, Sixth Mezzanine Lender and Seventh Mezzanine Lender are each a "Junior
Lender" and, collectively, "Junior Lenders". 

RECITALS  

        WHEREAS, pursuant to the terms, provisions and conditions set forth in that certain Loan Agreement, dated as of
the date hereof by and between Senior Borrower (as defined below) and Senior Lender (as the same may be amended, replaced, restated, supplemented or otherwise modified from time to time, the
"Senior Loan Agreement"), Senior Lender has made a loan to Senior Borrower in the original principal amount of Three Billion and No/100 Dollars
($3,000,000,000.00) (the "Senior Loan"), which Senior Loan is evidenced by that certain Promissory Note, dated as of the date hereof, given by Senior
Borrower to JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America, Column Financial, Inc., a Delaware corporation, and Bank of
America, N.A., a banking association chartered under the laws of the United States of America (collectively, the "Senior Noteholders"), in the
stated principal amount of Three Billion and No/100 Dollars ($3,000,000,000.00) (as the same may be consolidated, extended, severed, split, amended, replaced, restated, supplemented
or otherwise modified from time to time, the "Senior Note"), and secured by, among other things, the Mortgages (as defined below), which Mortgages
encumber the real property and all improvements thereon and appurtenances thereto described therein (collectively, the "Premises") (the Mortgages, and
together with the Senior Loan Agreement, the Senior Note and the other agreements, instruments and documents set forth on Exhibit A hereto, as
the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, subject to the terms and conditions contained in this Agreement, collectively, the
"Senior Loan Documents"); 

        WHEREAS, pursuant to the terms, provisions and conditions set forth in that certain Loan Agreement (First Mezzanine Loan), dated as of the
date hereof by and between First Mezzanine Borrower (as defined below) and First Mezzanine Lender (as the same may be amended, replaced, restated, supplemented or otherwise modified from time to time,
the "First Mezzanine Loan Agreement"), First Mezzanine Lender has made a loan to First Mezzanine Borrower in the original 

 

principal
amount of One Hundred Million and No/100 Dollars ($100,000,000.00) (the "First Mezzanine Loan"), which First Mezzanine Loan is evidenced by
that certain Promissory Note (First Mezzanine Loan), dated as of the date hereof, given by First Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking association chartered under the laws
of the United States of America, Column Financial, Inc., a Delaware corporation, and Bank of America, N.A., a banking association chartered under the laws of the United States of America
(collectively, the "First Mezzanine Noteholders"), in the stated principal amount of One Hundred Million and No/100 Dollars ($100,000,000.00) (as the
same may be consolidated, extended, severed, split, amended, replaced, restated, supplemented or otherwise modified from time to time, the "First Mezzanine
Note"), and secured by, among other things, certain Pledge and Security Agreement (First Mezzanine Loan), dated as of the date hereof, from First Mezzanine Borrower in favor of
First Mezzanine Lender (as the same may be amended, replaced, restated, supplemented or otherwise modified from time to time, the "First Mezzanine Pledge
Agreement"), pursuant to which First Mezzanine Lender is granted a first priority security interest in the Pledged Collateral (as defined in and more fully described therein).
The First Mezzanine Pledge Agreement, together with the First Mezzanine Loan Agreement, the First Mezzanine Note and the other agreements, instruments and documents set forth on  Exhibit B attached
hereto, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, subject to the
terms and conditions contained in this Agreement, are herein collectively referred to as the "First Mezzanine Loan Documents"; 

        WHEREAS, pursuant to the terms, provisions and conditions set forth in that certain Loan Agreement (Second Mezzanine Loan), dated as of
the date hereof, by and between Second Mezzanine Borrower (as defined below) and Second Mezzanine Lender (as the same may be amended, replaced, restated, supplemented or otherwise modified from time
to time, the "Second Mezzanine Loan Agreement"), Second Mezzanine Lender has made a loan to Second Mezzanine Borrower in the original principal amount
of Two Hundred Fifty Million and No/100 Dollars ($250,000,000.00) (the "Second Mezzanine Loan"), which Second Mezzanine Loan is evidenced by that
certain Promissory Note (Second Mezzanine Loan), dated as of the date hereof, given by Second Mezzanine Borrower to JPMorgan
Chase Bank, N.A., a banking association chartered under the laws of the United States of America, Column Financial, Inc., a Delaware corporation, and Bank of America, N.A., a
banking association chartered under the laws of the United States of America (collectively, the "Second Mezzanine Noteholders"), in the stated principal
amount of Two Hundred Fifty Million and No/100 Dollars ($250,000,000.00) (as the same may be consolidated, extended, severed, split, amended, replaced, restated, supplemented or otherwise modified
from time to time, the "Second Mezzanine Note"), and secured by, among other things, certain Pledge and Security Agreement (Second Mezzanine Loan),
dated as of the date hereof from Second Mezzanine Borrower in favor of Second Mezzanine Lender (as the same may be amended, replaced, restated, supplemented or otherwise modified from time to time,
the "Second Mezzanine Pledge Agreement"), pursuant to which Second Mezzanine Lender is granted a first priority security interest in the Pledged
Collateral (as defined in and more fully described therein). The Second Mezzanine Pledge Agreement, together with the Second Mezzanine Loan Agreement, the Second Mezzanine Note and the other
agreements, instruments and documents set forth on Exhibit C attached hereto, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time, subject to the terms and conditions contained in this Agreement, are herein collectively referred to as the "Second Mezzanine Loan
Documents"; 

        WHEREAS, pursuant to the terms, provisions and conditions set forth in that certain Loan Agreement (Third Mezzanine Loan), dated as of the
date hereof by and between Third Mezzanine Borrower (as defined below) and Third Mezzanine Lender (as the same may be amended, replaced, restated, supplemented or otherwise modified from time to time,
the "Third Mezzanine Loan Agreement"), Third Mezzanine Lender has made a loan to Third Mezzanine Borrower in the original principal amount of Two
Hundred Fifty Million and No/100 Dollars ($250,000,000.00) (the "Third Mezzanine Loan"), which Third Mezzanine Loan is evidenced by that certain
Promissory Note (Third 

2

 

Mezzanine
Loan), dated as of the date hereof, given by Third Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America,
Column Financial, Inc., a Delaware corporation, and Bank of America, N.A., a banking association chartered under the laws of the United States of America (collectively, the
"Third Mezzanine Noteholders"), in the stated principal amount of Two Hundred Fifty Million and No/100 Dollars ($250,000,000.00) (as the same may be
consolidated, extended, severed, split, amended, replaced, restated, supplemented or otherwise modified from time to time, the "Third Mezzanine Note"),
and secured by, among other things, certain Pledge and Security Agreement (Third Mezzanine Loan), dated as of the date hereof, from Third Mezzanine Borrower in favor of Third Mezzanine Lender (as the
same may be amended, replaced, restated, supplemented or otherwise modified from time to time, the "Third Mezzanine Pledge Agreement"), pursuant to
which Third Mezzanine Lender is granted a first priority security interest in the Pledged Collateral (as defined in and more fully described therein). The Third Mezzanine Pledge Agreement, together
with the Third Mezzanine Loan Agreement, the Third Mezzanine Note and the other agreements, instruments and documents set forth on Exhibit D
attached hereto, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, subject to the terms and conditions contained in this Agreement, are herein
collectively referred to as the "Third Mezzanine Loan Documents"; 

        WHEREAS, pursuant to the terms, provisions and conditions set forth in that certain Loan Agreement (Fourth Mezzanine Loan), dated as of
the date hereof, by and between Fourth Mezzanine Borrower (as defined below) and Fourth Mezzanine Lender (as the same may be amended, replaced, restated, supplemented or otherwise modified from time
to time, the "Fourth Mezzanine Loan Agreement"),
Fourth Mezzanine Lender has made a loan to Fourth Mezzanine Borrower in the original principal amount of Two Hundred Fifty Million and No/100 Dollars ($250,000,000.00) (the
"Fourth Mezzanine Loan"), which Fourth Mezzanine Loan is evidenced by that certain Promissory Note (Fourth Mezzanine Loan), dated as of the date hereof,
given by Fourth Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America, Column Financial, Inc., a Delaware
corporation, and Bank of America, N.A., a banking association chartered under the laws of the United States of America (collectively, the "Fourth Mezzanine
Noteholders"), in the stated principal amount of Two Hundred Fifty Million and No/100 Dollars ($250,000,000.00) (as the same may be consolidated, extended, severed, split,
amended, replaced, restated, supplemented or otherwise modified from time to time, the "Fourth Mezzanine Note"), and secured by, among other things,
certain Pledge and Security Agreement (Fourth Mezzanine Loan), dated as of the date hereof, from Fourth Mezzanine Borrower in favor of Fourth Mezzanine Lender (as the same may be amended, replaced,
restated, supplemented or otherwise modified from time to time, the "Fourth Mezzanine Pledge Agreement"), pursuant to which Fourth Mezzanine Lender is
granted a first priority security interest in the Pledged Collateral (as defined in and more fully described therein). The Fourth Mezzanine Pledge Agreement, together with the Fourth Mezzanine Loan
Agreement, the Fourth Mezzanine Note and the other agreements, instruments and documents set forth on Exhibit E attached hereto, as the same may
be amended, restated, replaced, supplemented or otherwise modified from time to time, subject to the terms and conditions contained in this Agreement, are herein collectively referred to as the
"Fourth Mezzanine Loan Documents"; 

        WHEREAS, pursuant to the terms, provisions and conditions set forth in that certain Loan Agreement (Fifth Mezzanine Loan), dated as of the
date hereof, by and between Fifth Mezzanine Borrower (as defined below) and Fifth Mezzanine Lender (as the same may be amended, replaced, restated, supplemented or otherwise modified from time to
time, the "Fifth Mezzanine Loan Agreement"), Fifth Mezzanine Lender has made a loan to Fifth Mezzanine Borrower in the original principal amount of Two
Hundred Fifty Million and No/100 Dollars ($250,000,000.00) (the "Fifth Mezzanine Loan"), which Fifth Mezzanine Loan is evidenced by that certain
Promissory Note (Fifth Mezzanine Loan), dated as of the date hereof, given by Fifth Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United
States of America, Column 

3

 

Financial, Inc.,
a Delaware corporation, and Bank of America, N.A., a banking association chartered under the laws of the United States of America (collectively, the
"Fifth Mezzanine Noteholders"), in the stated principal amount of Two Hundred Fifty Million and No/100 Dollars ($250,000,000.00) (as the same may be
consolidated, extended, severed, split, amended, replaced, restated, supplemented or otherwise modified from time to time, the "Fifth Mezzanine Note"),
and secured by, among other things, certain Pledge and Security Agreement (Fifth Mezzanine Loan), dated as of the date hereof, from Fifth Mezzanine Borrower in favor of Fifth Mezzanine Lender (as the
same may be amended, replaced, restated, supplemented or otherwise modified from time to time, the "Fifth Mezzanine Pledge Agreement"), pursuant to
which Fifth Mezzanine Lender is granted a first priority security interest in the Pledged Collateral (as defined in and more fully described therein). The Fifth Mezzanine Pledge Agreement, together
with the Fifth Mezzanine Loan Agreement, the Fifth Mezzanine Note and the other agreements, instruments and documents set forth on Exhibit F
attached hereto, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, subject to the terms and conditions contained in this Agreement, are herein
collectively referred to as the "Fifth Mezzanine Loan Documents"; 

        WHEREAS, pursuant to the terms, provisions and conditions set forth in that certain Loan Agreement (Sixth Mezzanine Loan), dated as of the
date hereof, by and between Sixth Mezzanine Borrower (as defined below) and Sixth Mezzanine Lender (as the same may be amended, replaced, restated, supplemented or otherwise modified from time to
time, the "Sixth Mezzanine Loan Agreement"), Sixth Mezzanine Lender has made a loan to Sixth Mezzanine Borrower in the original principal amount of Two
Hundred Fifty Million and No/100 Dollars ($250,000,000.00) (the "Sixth Mezzanine Loan"), which Sixth Mezzanine Loan is evidenced by that certain
Promissory Note (Sixth Mezzanine Loan), dated as of the date hereof, given by Sixth Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United
States of America, Column Financial, Inc., a Delaware corporation, and Bank of America, N.A., a banking association chartered under the laws of the United States of America
(collectively, the "Sixth Mezzanine Noteholders"), in the stated principal amount of Two Hundred Fifty Million and No/100 Dollars ($250,000,000.00) (as
the same may be consolidated, extended, severed, split, amended, replaced, restated, supplemented or otherwise modified from time to time, the "Sixth Mezzanine
Note"), and secured by, among other things, certain Pledge and Security Agreement (Sixth Mezzanine Loan), dated as of the date hereof, from Sixth Mezzanine Borrower in favor of
Sixth Mezzanine Lender (as the same may be amended, replaced, restated, supplemented or otherwise modified from time to time, the "Sixth Mezzanine Pledge
Agreement"), pursuant to which Sixth Mezzanine Lender is granted a first priority security interest in the Pledged Collateral (as defined in and more fully described therein).
The Sixth Mezzanine Pledge Agreement, together with the Sixth Mezzanine Loan Agreement, the Sixth Mezzanine Note and the other agreements, instruments and documents set forth on  Exhibit G attached
hereto, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, subject to the
terms and conditions contained in this Agreement, are herein collectively referred to as the "Sixth Mezzanine Loan Documents"; 

        WHEREAS, pursuant to the terms, provisions and conditions set forth in that certain Loan Agreement (Seventh Mezzanine Loan), dated as of
the date hereof, by and between Seventh Mezzanine Borrower (as defined below) and Seventh Mezzanine Lender (as the same may be amended, replaced, restated, supplemented or otherwise modified from time
to time, the "Seventh Mezzanine Loan Agreement"), Seventh Mezzanine Lender has made a loan to Seventh Mezzanine Borrower in the original principal
amount of Two Hundred Fifty Million and No/100 Dollars ($250,000,000.00) (the "Seventh Mezzanine Loan"), which Seventh Mezzanine Loan is evidenced by
that certain Promissory Note (Seventh Mezzanine Loan), dated as of the date hereof, given by Seventh Mezzanine Borrower to JPMorgan Chase Bank, N.A., a banking association chartered under the
laws of the United States of America, Column Financial, Inc., a Delaware corporation, and Bank of America, N.A., a banking association chartered under the laws of the United States of
America 

4

 

(collectively,
the "Seventh Mezzanine Noteholders"), in the stated principal amount of Two Hundred Fifty Million and No/100 Dollars ($250,000,000.00)
(as the same may be consolidated, extended, severed, split, amended, replaced, restated, supplemented or otherwise modified from time to time, the "Seventh Mezzanine
Note"), and secured by, among other things, certain Pledge and Security Agreement (Seventh Mezzanine Loan), dated as of the date hereof, from Seventh Mezzanine Borrower in
favor of Seventh Mezzanine Lender (as the same may be amended, replaced, restated, supplemented or otherwise modified from time to time, the "Seventh Mezzanine Pledge
Agreement"), pursuant to which Seventh Mezzanine Lender is granted a first priority security interest in the Pledged Collateral (as defined in and more fully described
therein). The Seventh Mezzanine Pledge Agreement, together with the Seventh Mezzanine Loan Agreement, the Seventh Mezzanine Note and the other agreements, instruments and documents set forth on  Exhibit H attached hereto, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, subject to the
terms and conditions contained in this Agreement, are herein collectively referred to as the "Seventh Mezzanine Loan Documents"; 

        WHEREAS, Senior Lender and Junior Lenders desire to enter into this Agreement to provide for the relative priority of, and to evidence
certain agreements with respect to, the Senior Loan Documents, the First Mezzanine Loan Documents, the Second Mezzanine Loan Documents, the Third Mezzanine Loan Documents, the Fourth Mezzanine Loan
Documents, the Fifth Mezzanine Loan Documents, the Sixth Mezzanine Loan Documents and the Seventh Mezzanine Loan Documents on the terms and conditions hereinbelow set forth. 

        NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Senior Lender and Junior Lenders hereby agree as follows: 

        Section 1.    Certain Definitions; Rules of Construction.    (a) As used in this Agreement, the
following capitalized terms shall have the following meanings: 

        "Accepted Servicing Practices" means any servicing standard by which Senior Lender may be bound under the applicable servicing agreement
pursuant to which the Senior Loan is serviced. 

        "Additional Covered Junior Loans" has the meaning provided in Section 14(c) hereof. 

        "Affected Property" has the meaning provided in Section 15(n) hereof. 

        "Affiliate" means, as to any particular Person (as hereinafter defined), any Person directly or indirectly, through one or more
intermediaries, Controlling, Controlled by or under common Control with the Person or Persons in question. 

        "Affiliate Junior Lender" shall have the meaning set forth in Section 38 hereof. 

        "Agreement" means this Agreement, as the same may be amended and in effect from time to time, pursuant to the terms hereof. 

        "Award" has the meaning set forth in Section 10(e) hereof. 

        "BofA" means Bank of America, N.A., a national banking association, and its successors in interest. 

        "Borrower Group" has the meaning set forth in Section 11(d)(ii) hereof. 

        "Business Day" means any day other than a Saturday, Sunday or any other day on which national banks in New York, New York or the place of
business of any servicer of the Loans are not open for business. 

        "CDO" has the meaning set forth in the definition of the term "Qualified Transferee". 

5

 

        "CDO Asset Manager" with respect to any Securitization Vehicle (hereinafter defined) that is a CDO, means the entity that is responsible
for managing or administering any Junior Loan (or any interest therein) as an underlying asset of such Securitization Vehicle or, if applicable, as an asset of any Intervening Trust Vehicle
(including, without limitation, the right to exercise any consent and control rights available to the holder of a Junior Loan). 

        "Certificates" means any securities (including all classes thereof) representing beneficial ownership interests in the Senior Loan or in a
pool of mortgage loans including the Senior Loan issued in connection with a Securitization of the Senior Loan. 

        "Column" means Column Financial, Inc., a Delaware corporation, and its successors in interest. 

        "Conduit" has the meaning set forth in Section 16(b) hereof. 

        "Conduit Credit Enhancer" has the meaning set forth in Section 16(b)(i) hereof. 

        "Conduit Inventory Loan" has the meaning set forth in Section 16(b)(i) hereof. 

        "Control" means the ownership, directly or indirectly, in the aggregate of more than fifty percent (50%) of the beneficial ownership
interests of an entity and the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of an entity, whether through the ability to exercise
voting power, by contract or otherwise. "Controlled by," "Controlling" and "under common Control with" shall have the respective correlative meaning thereto. 

        "Cooperation Agreement" means that certain Cooperation Agreement of even date herewith by and among the Senior Lender, each Junior Lender,
Senior Borrower and each Junior Borrower, as the same may be amended, replaced, restated, supplemented or otherwise modified from time to time. 

        "CS" means CS Securities (USA) LLC, a Delaware limited liability company, and its successors interest. 

        "Deed in Lieu" has the meaning provided in Section 14(b) hereof. 

        "Directing Junior Lender" has the meaning provided in Section 5(c) hereof. 

        "Directing Senior Lender" has the meaning provided in Section 5(d) hereof. 

        "Eligibility Requirements" means, with respect to any Person, that such Person (i) has total assets (in name or under management)
in excess of $650,000,000 and (except with respect to a pension advisory firm or similar fiduciary) capital/statutory surplus or shareholder's equity of $250,000,000 and (ii) is regularly
engaged in the business of making or owning commercial real estate loans (including mezzanine loans with respect to commercial real estate) or owning or operating commercial real estate properties. 

        "Enforcement Action" means any (i) judicial or non-judicial foreclosure proceeding, the exercise of any power of sale,
the taking of a deed or assignment in lieu of foreclosure, the obtaining of a receiver or the taking of any other enforcement action against the Premises or any portion thereof, or Senior Borrower,
including, without limitation, the taking of possession or control of the Premises or any portion thereof, (ii) acceleration of, or demand or action taken in order to collect, all or any
indebtedness secured by the Premises (other than giving notices of default and statements of overdue amounts) or (iii) exercise of any right or remedy available to Senior Lender under the
Senior Loan Documents, at law, in equity or otherwise with respect to Senior Borrower and/or the Premises or any portion thereof. 

        "Equity Collateral" means the equity interests in Senior Borrower or any Junior Borrower and all other collateral, products, proceeds,
rights and remedies granted or pledged pursuant to any of the Junior Loan Documents, as the context may require. 

6

 

        "Equity Collateral Enforcement Action" means any action or proceeding or other exercise of a Junior Lender's rights and remedies commenced
by such Junior Lender, in law or in equity, or otherwise, in order to realize upon the Equity Collateral (including, without limitation, an assignment in lieu of foreclosure or other negotiated
settlement in lieu of any such enforcement action) other than the giving of notices of default and statements of overdue amounts. 

        "Event of Default" as used herein means (i) with respect to the Senior Loan and the Senior Loan Documents, any "Event of Default"
(as defined therein) thereunder which has occurred and is continuing (i.e., has not been cured by Senior Borrower, waived by Senior Lender (in writing
and not through operation of law) and has not otherwise been or is not then being cured by a Junior Lender in accordance with the terms of this Agreement or as to which the cure period available to a
Junior Lender hereunder has expired without a cure); (ii) with respect to the First Mezzanine Loan and the First Mezzanine Loan Documents, any "Event of Default" (as defined therein) thereunder
which has occurred and is continuing (i.e., has not been cured by First Mezzanine Borrower, waived by First
Mezzanine Lender (in writing and not through operation of law) and has not otherwise been or is not then being cured by a Junior Lender in accordance with the terms of this Agreement or as to which
the cure period available to a Junior Lender hereunder has expired without a cure); (iii) with respect to the Second Mezzanine Loan and the Second Mezzanine Loan Documents, any "Event of
Default" (as defined therein) thereunder which has occurred and is continuing (i.e., has not been cured by Second Mezzanine Borrower, waived by Second
Mezzanine Lender (in writing and not through operation of law) and has not otherwise been or is not then being cured by a Junior Lender in accordance with the terms of this Agreement or as to which
the cure period available to a Junior Lender hereunder has expired without a cure); (iv) with respect to the Third Mezzanine Loan and the Third Mezzanine Loan Documents, any "Event of Default"
(as defined therein) thereunder which has occurred and is continuing (i.e., has not been cured by Third Mezzanine Borrower, waived by Third Mezzanine
Lender (in writing and not through operation of law) and has not otherwise been or is not then being cured by a Junior Lender in accordance with the terms of this Agreement or as to which the cure
period available to a Junior Lender hereunder has expired without a cure); (v) with respect to the Fourth Mezzanine Loan and the Fourth Mezzanine Loan Documents, any "Event of Default" (as
defined therein) thereunder which has occurred and is continuing (i.e., has not been cured by Fourth Mezzanine Borrower, waived by Fourth Mezzanine
Lender (in writing and not through operation of law) and has not otherwise been or is not then being cured by a Junior Lender in accordance with the terms of this Agreement or as to which the cure
period available to a Junior Lender hereunder has expired without a cure); (vi) with respect to the Fifth Mezzanine Loan and the Fifth Mezzanine Loan Documents, any "Event of Default" (as
defined therein) thereunder which has occurred and is continuing (i.e., has not been cured by Fifth Mezzanine Borrower, waived by Fifth Mezzanine Lender
(in writing and not through operation of law) and has not otherwise been or is not then being cured by a Junior Lender in accordance with the terms of this Agreement or as to which the cure period
available to a Junior Lender hereunder has expired without a cure), (vii) with respect to the Sixth Mezzanine Loan and the Sixth Mezzanine Loan Documents, any "Event of Default" (as defined
therein) thereunder which has occurred and is continuing (i.e., has not been cured by Sixth Mezzanine Borrower, waived by Sixth Mezzanine Lender (in
writing and not through operation of law) and has not otherwise been or is not then being cured by a Junior Lender in accordance with the terms of this Agreement or as to which the cure period
available to a Junior Lender hereunder has expired without a cure), and (viii) with respect to the Seventh Mezzanine Loan and the Seventh Mezzanine Loan Documents, any "Event of Default" (as
defined therein) thereunder which has occurred and is continuing (i.e., has not been cured by Seventh Mezzanine Borrower, waived by Seventh Mezzanine
Lender (in writing and not through operation of law) and has not otherwise been or is not then being cured by a Junior Lender in accordance with the terms of this Agreement or as to which the cure
period available to a Junior Lender hereunder has expired without a cure). 

        "Extended Monetary Cure Period" has the meaning set forth in Section 12(a)(i)
hereof. 

        "Extended Non-Monetary Cure Period" has the meaning set forth in  Section 12(a)(ii) hereof. 

7

 

  
        "Fifth Mezzanine Borrower" has the meaning set forth on Schedule 1 attached hereto. 

        "Fifth Mezzanine Cash Management Agreement" means any cash management agreement executed in connection with, or the cash management
provisions of, the Fifth Mezzanine Loan Documents. 

        "Fifth Mezzanine Lender" has the meaning set forth in the Recitals hereto. 

        "Fifth Mezzanine Loan" has the meaning set forth in the Recitals hereto. 

        "Fifth Mezzanine Loan Agreement" has the meaning set forth in the Recitals hereto. 

        "Fifth Mezzanine Loan Documents" has the meaning set forth in the Recitals hereto. 

        "Fifth Mezzanine Loan Liabilities" means, collectively, all of the indebtedness, liabilities and obligations of Fifth Mezzanine Borrower
under any Fifth Mezzanine Loan Document, including, without limitation (i) the principal amount of, and accrued interest on (including, without limitation, any interest which accrues after the
commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of Fifth Mezzanine Borrower, whether or not such interest would be allowed in such case,
proceeding or action), the Fifth Mezzanine Loan, (ii) all other indebtedness, obligations and liabilities of Fifth Mezzanine Borrower to Fifth Mezzanine Lender now existing or hereafter
incurred or created under the Fifth Mezzanine Loan Documents, and (iii) all other indebtedness, obligations and liabilities of Fifth Mezzanine Borrower to Fifth Mezzanine Lender now existing or
hereafter incurred, created and arising from or relating to the Fifth Mezzanine Loan, including, without limitation, any late charges, default interest, prepayment fees or premiums (including spread
maintenance and yield maintenance premiums), exit fees, advances and post-petition interest. 

        "Fifth Mezzanine Note" has the meaning set forth in the Recitals hereto. 

        "Fifth Mezzanine Noteholders" has the meaning provided in the Recitals hereto. 

        "Fifth Mezzanine Pledge Agreement" has the meaning set forth in the Recitals hereto. 

        "First Mezzanine Borrower" has the meaning set forth on Schedule 1 attached hereto. 

        "First Mezzanine Cash Management Agreement" means any cash management agreement executed in connection with, or the cash management
provisions of, the First Mezzanine Loan Documents. 

        "First Mezzanine Lender" has the meaning set forth in the Recitals hereto. 

        "First Mezzanine Loan" has the meaning set forth in the Recitals hereto. 

        "First Mezzanine Loan Agreement" has the meaning set forth in the Recitals hereto. 

        "First Mezzanine Loan Documents" has the meaning set forth in the Recitals hereto. 

        "First Mezzanine Loan Liabilities" means, collectively, all of the indebtedness, liabilities and obligations of the First Mezzanine
Borrower under any First Mezzanine Loan Document, including, without limitation (i) the principal amount of, and accrued interest on (including, without limitation, any interest which accrues
after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of First Mezzanine Borrower, whether or not such interest would be allowed in
such case, proceeding or action), the First Mezzanine Loan, (ii) all other indebtedness, obligations and liabilities of the First Mezzanine Borrower to First Mezzanine Lender now existing or
hereafter incurred or created under the First Mezzanine Loan Documents, and (iii) all other indebtedness, obligations and liabilities of First Mezzanine Borrower to First Mezzanine Lender now
existing or hereafter incurred, created and arising from or relating to the First Mezzanine Loan, including, without limitation, any late charges, default interest, prepayment fees or premiums
(including spread maintenance and yield maintenance premiums), exit fees, advances and post-petition interest. 

8

 

        "First Mezzanine Note" has the meaning set forth in the Recitals hereto. 

        "First Mezzanine Noteholders" has the meaning provided in the Recitals hereto. 

        "First Mezzanine Pledge Agreement" has the meaning set forth in the Recitals hereto. 

        "Fitch" means Fitch, Inc., and its successors in interest. 

        "Fourth Mezzanine Borrower" has the meaning set forth on Schedule 1 attached
hereto. 

        "Fourth Mezzanine Cash Management Agreement" means any cash management agreement executed in connection with, or the cash management
provisions of, the Fourth Mezzanine Loan Documents. 

        "Fourth Mezzanine Lender" has the meaning set forth in the Recitals hereto. 

        "Fourth Mezzanine Loan" has the meaning set forth in the Recitals hereto. 

        "Fourth Mezzanine Loan Agreement" has the meaning set forth in the Recitals hereto. 

        "Fourth Mezzanine Loan Documents" has the meaning set forth in the Recitals hereto. 

        "Fourth Mezzanine Loan Liabilities" means, collectively, all of the indebtedness, liabilities and obligations of Fourth Mezzanine Borrower
under any Fourth Mezzanine Loan Document, including, without limitation (i) the principal amount of, and accrued interest on (including, without limitation, any interest which accrues after the
commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of Fourth Mezzanine Borrower, whether or not such interest would be allowed in such case,
proceeding or action), the Fourth Mezzanine Loan, (ii) all other indebtedness, obligations and liabilities of Fourth Mezzanine Borrower to Fourth Mezzanine Lender now existing or hereafter
incurred or created under the Fourth Mezzanine Loan Documents, and (iii) all other indebtedness, obligations and liabilities of Fourth Mezzanine Borrower to Fourth Mezzanine Lender now existing
or hereafter incurred, created and arising from or relating to the Fourth Mezzanine Loan, including, without limitation, any late charges, default interest, prepayment fees or
premiums (including spread maintenance and yield maintenance premiums), exit fees, advances and post-petition interest. 

        "Fourth Mezzanine Note" has the meaning set forth in the Recitals hereto. 

        "Fourth Mezzanine Noteholders" has the meaning provided in the Recitals hereto. 

        "Fourth Mezzanine Pledge Agreement" has the meaning set forth in the Recitals hereto. 

        "Ground Lease" shall mean, individually and collectively, as the context requires, those certain ground leases described on  Schedule 2 hereto. 

        "Ground Lease Default" has the meaning provided in Section 15(r) hereof. 

        "Guarantor" has the meaning provided in Section 6(b) hereof. 

        "Guaranty Claim" has the meaning provided in Section 6(b) hereof. 

        "Indemnified Parties" means each Senior Lender as of the date hereof, and each of its affiliates and their respective successors and
assigns (including any owner or holder of the Senior Note and/or any owner or holder of any right, title and interest in the Senior Note) (and also including their respective officers, directors,
partners, members, employees, attorneys, accountants, professionals and agents and each other person, if any, controlling Senior Lender or any of its affiliates within the meaning of either
Section 15 of the Securities Act of 1933, as amended, or Section 20 of the Securities Exchange Act of 1934, as amended). 

        "Individual Property" has the meaning set forth in the Senior Loan Agreement. 

9

 

        "Initial Junior Loan Non-Monetary Cure Period" has the meaning provided in  Section 12(b)(ii). 

        "Intervening Trust Vehicle" shall mean with respect to any Securitization Vehicle that is a CDO, a trust vehicle or entity which holds a
Junior Loan (or any interest therein) as collateral securing (in whole or in part) any obligation or security held by such Securitization Vehicle as collateral for the CDO. 

        "JPMorgan" mean JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America, and its
successors in interest. 

        "Junior Borrower" means, collectively, First Mezzanine Borrower, Second Mezzanine Borrower, Third Mezzanine Borrower, Fourth Mezzanine
Borrower, Fifth Mezzanine Borrower, Sixth Mezzanine Borrower and Seventh Mezzanine Borrower, unless the context otherwise requires, in which case it shall mean either First Mezzanine Borrower, Second
Mezzanine Borrower, Third Mezzanine Borrower, Fourth Mezzanine Borrower, Fifth Mezzanine Borrower, Sixth Mezzanine Borrower or Seventh Mezzanine Borrower. 

        "Junior Borrower Group" has the meaning provided in Section 11(d)(iii) hereof. 

        "Junior Lender" means, collectively, First Mezzanine Lender, Second Mezzanine Lender, Third Mezzanine Lender, Fourth Mezzanine Lender,
Fifth Mezzanine Lender, Sixth Mezzanine Borrower and Seventh Mezzanine Borrower, unless the context otherwise requires, in which case it shall mean either First Mezzanine Lender, Second Mezzanine
Lender, Third Mezzanine Lender, Fourth Mezzanine Lender, Fifth Mezzanine Lender, Sixth Mezzanine Borrower or Seventh Mezzanine Borrower, individually. As the context requires, Junior Lenders shall
have the following order of priority: (i) first, First Mezzanine Lender; (ii) second, Second Mezzanine Lender; (iii) third, Third Mezzanine Lender; (iv) fourth, Fourth
Mezzanine Lender; (v) fifth, Fifth Mezzanine Lender, (vi) sixth, Sixth Mezzanine Lender and (vii) seventh, Seventh Mezzanine Lender. 

        "Junior Loan" means, collectively, First Mezzanine Loan, Second Mezzanine Loan, Third Mezzanine Loan, Fourth Mezzanine Loan, Fifth
Mezzanine Loan, Sixth Mezzanine Borrower and Seventh Mezzanine Borrower, unless the context otherwise requires, in which case it shall mean either First Mezzanine Loan, Second Mezzanine Loan, Third
Mezzanine Loan, Fourth Mezzanine Loan, Fifth Mezzanine Loan, Sixth Mezzanine Borrower or Seventh Mezzanine Borrower, individually. 

        "Junior Loan Agreement" means, collectively, the First Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement, the Third Mezzanine
Loan Agreement, the Fourth Mezzanine Loan Agreement, the Fifth Mezzanine Loan Agreement, the Sixth Mezzanine Loan Agreement and the Seventh Mezzanine Loan Agreement, unless the context otherwise
requires, in which case it shall mean either the First Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement, the Third
Mezzanine Loan Agreement, the Fourth Mezzanine Loan Agreement, the Fifth Mezzanine Loan Agreement, the Sixth Mezzanine Loan Agreement or the Seventh Mezzanine Loan Agreement, individually. 

        "Junior Loan Cash Management Agreement" means, collectively, the First Mezzanine Cash Management Agreement, the Second Mezzanine Cash
Management Agreement, the Third Mezzanine Cash Management Agreement, the Fourth Mezzanine Cash Management Agreement, the Fifth Mezzanine Cash Management Agreement, the Sixth Mezzanine Cash Management
Agreement and the Seventh Mezzanine Cash Management Agreement, unless the context otherwise requires, in which case it shall mean either the First Mezzanine Cash Management Agreement, the Second
Mezzanine Cash Management Agreement, the Third Mezzanine Cash Management Agreement, the Fourth Mezzanine Cash Management Agreement, the Fifth Mezzanine Cash Management Agreement, the Sixth Mezzanine
Cash Management Agreement or the Seventh Mezzanine Cash Management Agreement, individually. 

10

 

        "Junior Loan Default Notice" has the meaning provided in Section 12(b) hereof. 

        "Junior Loan Documents" means, collectively, the First Mezzanine Loan Documents, the Second Mezzanine Loan Documents, the Third Mezzanine
Loan Documents, the Fourth Mezzanine Loan Documents, the Fifth Mezzanine Loan Documents, the Sixth Mezzanine Loan Documents and the Seventh Mezzanine Loan Documents, unless the context otherwise
requires, in which case it shall mean either the First Mezzanine Loan Documents, the Second Mezzanine Loan Documents, the Third Mezzanine Loan Documents, the Fourth Mezzanine Loan Documents, the Fifth
Mezzanine Loan Documents, the Sixth Mezzanine Loan Documents or the Seventh Mezzanine Loan Documents, individually. 

        "Junior Loan Extended Monetary Cure Period" has the meaning provided in  Section 12(b)(i) hereof. 

        "Junior Loan Extended Non-Monetary Cure Period" has the meaning provided in  Section 12(b)(ii) hereof. 

        "Junior Loan Liabilities" means, collectively, the First Mezzanine Loan Liabilities, the Second Mezzanine Loan Liabilities, the Third
Mezzanine Loan Liabilities, the Fourth Mezzanine Loan Liabilities, the Fifth Mezzanine Loan Liabilities, the Sixth Mezzanine Loan Liabilities and the Seventh Mezzanine Loan Liabilities, unless the
context otherwise requires, in which case it shall mean either the First Mezzanine Loan Liabilities, the Second Mezzanine Loan Liabilities, the Third Mezzanine Loan
Liabilities, the Fourth Mezzanine Loan Liabilities, the Fifth Mezzanine Loan Liabilities, the Sixth Mezzanine Loan Liabilities, or the Seventh Mezzanine Loan Liabilities, individually. 

        "Junior Loan Modification" has the meaning provided in Section 8(b) hereof. 

        "Junior Loan Monetary Cure Period" has the meaning provided in Section 12(b)(i)
hereof. 

        "Junior Loan Non-Monetary Cure Period" has the meaning provided in  Section 12(b)(ii) hereof. 

        "Junior Loan Purchase Option Event" has the meaning provided in Section 14(c)
hereof. 

        "Junior Note" means, collectively, the First Mezzanine Note, the Second Mezzanine Note, the Third Mezzanine Note, the Fourth Mezzanine
Note, the Fifth Mezzanine Note, the Sixth Mezzanine Note and the Seventh Mezzanine Note, unless the context otherwise requires, in which case it shall mean either the First Mezzanine Note, the Second
Mezzanine Note, the Third Mezzanine Note, the Fourth Mezzanine Note, the Fifth Mezzanine Note, the Sixth Mezzanine Note or the Seventh Mezzanine Note, individually. 

        "Junior Noteholders" shall mean one or more of the First Mezzanine Noteholders, the Second Mezzanine Noteholders, the Third Mezzanine
Noteholders, the Fourth Mezzanine Noteholders, the Fifth Mezzanine Noteholders, the Sixth Mezzanine Noteholders and the Seventh Mezzanine Noteholders. 

        "Junior Purchase Notice" has the meaning provided in Section 14(c) hereof. 

        "Loan Pledgee" has the meaning set forth in Section 16(a) hereof. 

        "Mezzanine Lease Notice" has the meaning set forth in Section 15(q) hereof. 

        "Monetary Cure Period" means, with respect to each Junior Lender, the applicable cure period provided in  Section 12(a)(i) for a monetary default identified in a
Senior Loan Default Notice. 

        "Moody's" means Moody's Investor Service, Inc., and its successors in interest. 

        "Mortgage" or "Mortgages" has the meaning assigned to such term in the Senior Loan
Agreement. 

11

 

        "New Lease" means a new or replacement ground lease which the leasehold mortgagee or its nominee or Mezzanine Nominee may enter into with
the ground lessor upon the termination of the Ground Lease. 

        "Non-Monetary Cure Period" means, with respect to each Junior Lender, the applicable cure period provided in  Section 12(a)(ii) for a non-monetary default identified
in a Senior Loan Default Notice. 

        "Notice" has the meaning provided in Section 18 hereof. 

        "OpCo" shall have the meaning set forth in Section 15(q) hereof. 

        "Optioned Junior Lender" has the meaning provided in Section 14(c) hereof. 

        "Optioned Junior Loan" has the meaning provided in Section 14(c) hereof. 

        "Permitted Fund Manager" means any Person that on the date of determination is not subject to a Proceeding and is either (i) one of
the entities listed on Exhibit L or any other nationally-recognized manager of investment funds investing in debt or equity interests relating to
commercial real estate, (ii) an entity that is a Qualified Transferee pursuant to clause (ix)(A), (B), (C), (D) or (G) of the definition thereof or (iii) any Junior
Lender in each case, which are investing through a fund with or has committed capital of at least $250,000,000. 

        "Permitted Investment Fund" has the meaning set forth in the definition of Qualified Transferee. 

        "Person" means any individual, sole proprietorship, corporation, general partnership, limited partnership, limited liability company or
partnership, joint venture, association, joint stock company, bank, trust, estate unincorporated organization, any federal, state, county or municipal government (or any agency or political
subdivision thereof) endowment fund or any other form of entity and any fiduciary acting in such capacity on behalf of any of the foregoing. 

        "Pledge" has the meaning set forth in Section 16(a) hereof. 

        "Pledge Agreement" means, collectively, the First Mezzanine Pledge Agreement, the Second Mezzanine Pledge Agreement, the Third Mezzanine
Pledge Agreement, the Fourth Mezzanine Pledge Agreement, the Fifth Mezzanine Pledge Agreement, the Sixth Mezzanine Pledge Agreement and the Seventh Mezzanine Pledge Agreement, unless the context
otherwise requires, in which case it shall mean either the First Mezzanine Pledge Agreement, the Second Mezzanine Pledge Agreement, the Third Mezzanine Pledge Agreement, the Fourth Mezzanine Pledge
Agreement or the Fifth Mezzanine Pledge Agreement, the Sixth Mezzanine Pledge Agreement or the Seventh Mezzanine Pledge Agreement, individually. 

        "Policies" has the meaning provided in Section 10(f) hereof. 

        "Premises" has the meaning set forth in the Recitals hereto. 

        "Proceeding" has the meaning set forth in Section 11(d)(i) hereof. 

        "Protective Advances" means all sums advanced for the purpose of payment of real estate taxes (including special assessments or payments
in lieu of real estate taxes), maintenance costs, insurance premiums, ground rents or other items (including capital expenses and leasing costs such as (without limitation) leasing commissions and
tenant improvement allowances) reasonably necessary to protect any of the Premises or the Separate Collateral, respectively, or any portion thereof (including, but not limited to, all reasonable
attorneys' fees, costs relating to the entry upon the Premises or any portion thereof to make repairs and the payment, purchase, contest or compromise of any encumbrance, charge or lien which in the
judgment of Senior Lender or the applicable Senior Junior Lender appears to be prior or superior to the Senior Loan Documents or the applicable Senior Junior Loan Documents) or the Separate Collateral
or any portion thereof, respectively, from forfeiture, casualty, loss or waste or 

12

 

to
protect, preserve or defend the lien of the Senior Loan Documents or any of the Junior Loan Documents, as applicable, including, with respect to a Junior Loan, amounts advanced by a Junior Lender
to effect a cure in accordance with Section 12 hereof. 

        "Purchase Notice" has the meaning set forth in Section 14(a) hereof. 

        "Purchase Option Event" has the meaning set forth in Section 14(a) hereof. 

        "Qualified Transferee" means (i) JPMorgan or an Affiliate of JPMorgan, (ii) CS or an Affiliate of CS, (iii) BofA or
an Affiliate of BofA, (iv) HCP, Inc., a Maryland corporation, or an Affiliate of HCP, Inc. and (v) one or more of the following: 

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

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

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

        (D)  any
entity Controlled by, Controlling or under common Control with any of the entities described in clause (v)(A),  (v)(B) or (v)(C)
 above or clauses (v)(F) or
(iv)(G) below; 

        (E)  a
Qualified Trustee (or in the case of a CDO, a single purpose bankruptcy remote entity which contemporaneously assigns or pledges its interest in a Junior Loan, or a
participation interest therein (or any portion thereof) to a Qualified Trustee) in connection with (aa) a securitization of, (bb) the creation of collateralized debt obligations
("CDO") secured by, or (cc) a financing through an "owner trust" of, a Junior Loan or any interest therein (any of the foregoing, a
"Securitization Vehicle"), provided that (1) one or more classes of securities issued by such
Securitization Vehicle is initially rated at least investment grade by each of the Rating Agencies which assigned a rating to one or more classes of securities issued in connection with a
Securitization (it being understood that with respect to any Rating Agency that assigned such a rating to the securities issued by such Securitization Vehicle, a Rating Agency Confirmation will not be
required in connection with a transfer of the Junior Loan or any interest therein to such Securitization Vehicle (except that if one or more classes of securities issued in connection with a
Securitization is rated by Moody's, the transferee may not rely on this clause (1) with respect to Moody's); (2) in the case of a Securitization Vehicle that is not a CDO, the special
servicer of such Securitization Vehicle has the Required Special Servicer Rating at the time of
Transfer and the related transaction documents for such Securitization Vehicle require that any successor have the Required Special Servicer Rating (such entity, an "Approved
Servicer") and such Approved Servicer is required to service and administer such Junior Loan or any interest therein in accordance with servicing arrangements for the assets
held by the Securitization Vehicle which require that such Approved Servicer act in accordance with a servicing standard notwithstanding any contrary direction or instruction from any other Person; or
(3) in the case of a Securitization Vehicle that is a CDO, the CDO Asset Manager and, if applicable, each Intervening Trust Vehicle that is not administered and managed by a CDO Asset Manager
which is a Qualified Transferee, are each Qualified Transferees under clause (v)(A), (B),  (C),
(D), (F) or  (G) of this definition; 

13

 

        (F)  an
investment fund, limited liability company, limited partnership or general partnership (a "Permitted Investment Fund")
where a Permitted Fund Manager acts as the general partner, managing member or fund manager and at least fifty percent (50%) of the equity interests in such investment vehicle are owned, directly or
indirectly, by one or more of the following: a Qualified Transferee, an institutional "accredited investor", within the meaning of Regulation D promulgated under the Securities Act of 1933, as
amended, and/or a "qualified institutional buyer" or both within the meaning of Rule 144A promulgated under the Securities Exchange Act of 1934, as amended, provided such institutional
"accredited investors" or "qualified institutional buyers" that are used to satisfy the 50% test set forth above in this clause (F) satisfy the
financial tests in clause (i) of the definition of Eligibility Requirements; or 

        (G)  any
Person for which the Rating Agencies have issued a Rating Agency Confirmation with respect to such Transfer. 

        "Qualified Trustee" means (i) a corporation, national bank, national banking association or a trust company, organized and doing
business under the laws of any state or the United States of America, authorized under such laws to exercise corporate trust powers and to accept the trust conferred, having a combined capital and
surplus of at least $100,000,000 and subject to supervision or examination by federal or state authority, (ii) an institution insured by the Federal Deposit Insurance Corporation or
(iii) an institution whose long-term senior unsecured debt is rated either of the then in effect top two (2) rating categories of S&P and either Fitch or Moody's
(provided, however, if the Senior Loan has been securitized, the rating requirement of any agency not a
Rating Agency will be disregarded). 

        "Rated Final Distribution Date" has the meaning set forth in the pooling and servicing agreement pursuant to which the Senior Loan is
Securitized and serviced until such time that the Senior Loan is no longer subject to such pooling and servicing agreement. 

        "Rating Agencies" shall mean, prior to the final Securitization of the Senior Loan, collectively, S&P, Moody's and Fitch, and any other
nationally-recognized statistical rating agency which has been designated by Senior Lender and, after the Securitization of the Senior Loan, shall mean any of the foregoing that have rated any of the
Certificates. 

        "Rating Agency Confirmation" means a written affirmation from each of the Rating Agencies that the credit rating of the Certificates
assigned by such Rating Agency immediately prior to the occurrence of the event with respect to which such Rating Agency Confirmation is sought will not be qualified, downgraded or withdrawn as a
result of the occurrence of such event. In the event that no Certificates are outstanding or the Senior Loan is not part of a Securitization, any action that would otherwise require a Rating Agency
Confirmation shall instead require the consent of Senior Lender, which consent shall not be unreasonably withheld or delayed. All fees and expenses of the Rating Agencies incurred in connection with
any Rating Agency Confirmation required pursuant to this Agreement as the result of a request or action of a Junior Lender shall be paid by such Junior Lender. 

        "Redirection Notice" has the meaning set forth in Section 16(a) hereof. 

        "Repo Agreement" has the meaning set forth in Section 16(a) hereof. 

        "Required Special Servicer Rating" means a special servicer that (i) has a rating of "CSS1" in the case of Fitch, (ii) is on
S&P's Select Servicer List as a US Commercial Mortgage Special Servicer in the case of S&P and (iii) in the case of Moody's, such special servicer is acting as special servicer for a loan in a
commercial mortgage loan securitization that was rated by Moody's within the twelve (12) month period prior to the date of determination and Moody's has not downgraded or withdrawn the
then-current rating on any class of commercial mortgage securities or placed any class of commercial mortgage securities on watch citing the continuation of such special servicer as
special servicer of such commercial mortgage securities. The requirement of any agency not a Rating Agency shall be disregarded. 

14

 

        "Resized Components" has the meaning set forth in Section 15(m) hereof. 

        "Resizing Date" has the meaning set forth in Section 15(m) hereof. 

        "Resizing Notice" has the meaning set forth in Section 15(m) hereof. 

        "S&P" means Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc., and its
successors in interest. 

        "Second Mezzanine Borrower" has the meaning set forth on Schedule 1 attached
hereto. 

        "Second Mezzanine Cash Management Agreement" means any cash management agreement executed in connection with, or the cash management
provisions of, the Second Mezzanine Loan Documents. 

        "Second Mezzanine Lender" has the meaning set forth in the Recitals hereto. 

        "Second Mezzanine Loan" has the meaning set forth in the Recitals hereto. 

        "Second Mezzanine Loan Agreement" has the meaning set forth in the Recitals hereto. 

        "Second Mezzanine Loan Documents" has the meaning set forth in the Recitals hereto. 

        "Second Mezzanine Loan Liabilities" means, collectively, all of the indebtedness, liabilities and obligations of Second Mezzanine Borrower
under any Second Mezzanine Loan Document, including, without limitation (i) the principal amount of, and accrued interest on (including, without limitation, any interest which accrues after the
commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of Second Mezzanine Borrower, whether or not such interest would be allowed in such case,
proceeding or action), the Second Mezzanine Loan, (ii) all other indebtedness, obligations and liabilities of Second Mezzanine Borrower to Second Mezzanine Lender now existing or hereafter
incurred or created under the Second Mezzanine Loan Documents, and (iii) all other indebtedness, obligations and liabilities of Second Mezzanine Borrower to Second Mezzanine Lender now existing
or hereafter incurred, created and arising from or relating to the Second Mezzanine Loan, including, without limitation, any late charges, default interest, prepayment fees or premiums (including
spread maintenance and yield maintenance premiums), exit fees, advances and post-petition interest. 

        "Second Mezzanine Note" has the meaning set forth in the Recitals hereto. 

        "Second Mezzanine Noteholders" has the meaning provided in the Recitals hereto. 

        "Second Mezzanine Pledge Agreement" has the meaning set forth in the Recitals hereto. 

        "Securitization" has the meaning set forth in the Senior Loan Agreement. 

        "Securitization Vehicle" has the meaning set forth in the definition of the term "Qualified Transferee". 

        "Senior Borrower" has the meaning set forth on Schedule 1 attached hereto. 

        "Senior Junior Borrowers" means (i) with respect to the First Mezzanine Loan, none of the other Junior Borrowers; (ii) with
respect to the Second Mezzanine Loan, the First Mezzanine Borrower; (iii) with respect to the Third Mezzanine Loan, the First Mezzanine Borrower and the Second Mezzanine Borrower;
(iv) with respect to the Fourth Mezzanine Loan, the First Mezzanine Borrower, the Second Mezzanine Borrower, and the Third Mezzanine Borrower; (v) with respect to the Fifth Mezzanine
Loan, the First Mezzanine Borrower, the Second Mezzanine Borrower, the Third Mezzanine Borrower and the Fourth Mezzanine Borrower, (vi) with respect to the Sixth Mezzanine Loan, the First
Mezzanine Borrower, the Second Mezzanine Borrower, the Third Mezzanine Borrower, the Fourth Mezzanine Borrower and the Fifth Mezzanine Borrower and (vii) with respect to the 

15

 

Seventh
Mezzanine Loan, the First Mezzanine Borrower, the Second Mezzanine Borrower, the Third Mezzanine Borrower, the Fourth Mezzanine Borrower, the Fifth Mezzanine Borrower and the Sixth Mezzanine
Borrower. 

        "Senior Junior Lenders" means (i) with respect to the First Mezzanine Loan, none of the other Junior Lenders; (ii) with
respect to the Second Mezzanine Loan, First Mezzanine Lender; (iii) with respect to the Third Mezzanine Loan, the First Mezzanine Lender and the Second Mezzanine Lender; (iv) with
respect to the Fourth Mezzanine Loan, the First Mezzanine Lender, the Second Mezzanine Lender, and the Third Mezzanine Lender; (v) with respect to the Fifth Mezzanine Loan, the First Mezzanine
Lender, the Second Mezzanine Lender, the Third Mezzanine Lender and the Fourth Mezzanine Lender, (vi) with respect to the Sixth Mezzanine Loan, the First Mezzanine Lender, the Second Mezzanine
Lender, the Third Mezzanine Lender, the Fourth Mezzanine Lender and the Fifth Mezzanine Lender and (vii) with respect to the Seventh Mezzanine Loan, the First Mezzanine Lender, the Second
Mezzanine Lender, the Third Mezzanine Lender, the Fourth Mezzanine Lender, the Fifth Mezzanine Lender and the Sixth Mezzanine Lender. As the context requires, Senior Junior Lenders shall have the
following order of priority: (i) first, the First Mezzanine Lender; (ii) second, the Second Mezzanine Lender; (iii) third, the Third Mezzanine Lender; (iv) fourth, the
Fourth Mezzanine Lender; (v) fifth, the Fifth Mezzanine Lender, (vi) sixth, the Sixth Mezzanine Lender and (vii) seventh, the Seventh Mezzanine Lender. 

        "Senior Junior Loan Agreements" means (i) with respect to the First Mezzanine Loan, none of the other Junior Loan Agreements;
(ii) with respect to the Second Mezzanine Loan, the First Mezzanine Loan Agreement; (iii) with respect to the Third Mezzanine Loan, the First Mezzanine Loan Agreement and the Second
Mezzanine Loan Agreement; (iv) with respect to the Fourth Mezzanine Loan, the First Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement and the Third Mezzanine Loan Agreement;
(v) with respect to the Fifth Mezzanine Loan, the First Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement, the Third Mezzanine Loan Agreement and the Fourth Mezzanine Loan
Agreement, (vi) with respect to the Sixth Mezzanine Loan, the First Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement, the Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan
Agreement and the Fifth Mezzanine Loan Agreement, (vii) with respect to the Seventh Mezzanine Loan, the First Mezzanine Loan Agreement, the Second Mezzanine Loan Agreement, the Third Mezzanine
Loan Agreement, the Fourth Mezzanine Loan Agreement, the Fifth Mezzanine Loan Agreement and the Sixth Mezzanine Loan Agreement. As the context requires, the Senior Junior Loan Agreements shall have
the following order of priority: (i) first, the First Mezzanine Loan Agreement; (ii) second, the Second Mezzanine Loan Agreement; (iii) third, the Third Mezzanine Loan Agreement;
(iv) fourth, the Fourth Mezzanine Loan Agreement; (v) fifth, the Fifth Mezzanine Loan Agreement, (vi) sixth, the Sixth Mezzanine Loan Agreement and (vii) seventh, the
Seventh Mezzanine Loan Agreement. 

        "Senior Junior Loan Cash Management Agreements" means (i) with respect to the First Mezzanine Loan, none of the other Junior Loan
Cash Management Agreements; (ii) with respect to the Second Mezzanine Loan, the First Mezzanine Cash Management Agreement; (iii) with respect to the Third Mezzanine Loan, the First
Mezzanine Cash Management Agreement and the Second Mezzanine Cash Management Agreement; (iv) with respect to the Fourth Mezzanine Loan, the First Mezzanine Cash Management Agreement, the Second
Mezzanine Cash Management Agreement and the Third Mezzanine Cash Management Agreement; (v) with respect to the Fifth Mezzanine Loan, the First Mezzanine Cash Management Agreement, the Second
Mezzanine Cash Management Agreement, the Third Mezzanine Cash Management Agreement and the Fourth Mezzanine Cash Management Agreement; (vi) with respect to the Sixth Mezzanine Loan, the First
Mezzanine Cash Management Agreement, the Second Mezzanine Cash Management Agreement, the Third Mezzanine Cash Management Agreement, the Fourth Mezzanine Cash Management Agreement and the Fifth
Mezzanine Cash Management Agreement; (vii) with respect to the Seventh Mezzanine Loan, the First 

16

 

Mezzanine
Cash Management Agreement, the Second Mezzanine Cash Management Agreement, the Third Mezzanine Cash Management Agreement, the Fourth Mezzanine Cash Management Agreement the Fifth Mezzanine
Cash Management Agreement and the Sixth Mezzanine Cash Management Agreement. As the context requires, the Senior Junior Loan Cash Management Agreements shall have the following order of priority:
(i) first, the First Mezzanine Cash Management Agreement; (ii) second, the Second Mezzanine Cash Management Agreement; (iii) third, the Third Mezzanine Cash Management Agreement;
(iv) fourth, the Fourth Mezzanine Cash Management Agreement; (v) fifth, the Fifth Mezzanine Cash Management Agreement; (vi) sixth, the Sixth Mezzanine Cash Management Agreement
and (vii) seventh, the Seventh Mezzanine Cash Management Agreement. 

        "Senior Junior Loan Documents" means (i) with respect to the First Mezzanine Loan, none of the other Junior Loan Documents;
(ii) with respect to the Second Mezzanine Loan, the First Mezzanine Loan Documents; (iii) with respect to the Third Mezzanine Loan, the First Mezzanine Loan Documents
and the Second Mezzanine Loan Documents; (iv) with respect to the Fourth Mezzanine Loan, the First Mezzanine Loan Documents, the Second Mezzanine Loan Documents and the Third Mezzanine Loan
Documents; (v) with respect to the Fifth Mezzanine Loan, the First Mezzanine Loan Documents, the Second Mezzanine Loan Documents, the Third Mezzanine Loan Documents and the Fourth Mezzanine
Loan Documents, (vi) with respect to the Sixth Mezzanine Loan, the First Mezzanine Loan Documents, the Second Mezzanine Loan Documents, the Third Mezzanine Loan Documents, the Fourth Mezzanine
Loan Documents and the Fifth Mezzanine Loan Documents and (vii) with respect to the Seventh Mezzanine Loan, the First Mezzanine Loan Documents, the Second Mezzanine Loan Documents, the Third
Mezzanine Loan Documents, the Fourth Mezzanine Loan Documents, the Fifth Mezzanine Loan Documents and the Sixth Mezzanine Loan Documents. As the context requires, the Senior Junior Loan Documents
shall have the following order of priority: (i) first, the First Mezzanine Loan Documents; (ii) second, the Second Mezzanine Loan Documents; (iii) third, the Third Mezzanine Loan
Documents; (iv) fourth, the Fourth Mezzanine Loan Documents; (v) fifth, the Fifth Mezzanine Loan Documents; (vi) sixth, the Sixth Mezzanine Loan Documents and
(vii) seventh, the Seventh Mezzanine Loan Documents. 

        "Senior Junior Loan Liabilities" means (i) with respect to the First Mezzanine Loan, none of the other Junior Loan Liabilities;
(ii) with respect to the Second Mezzanine Loan, the First Mezzanine Loan Liabilities; (iii) with respect to the Third Mezzanine Loan, the First Mezzanine Loan Liabilities and the Second
Mezzanine Loan Liabilities; (iv) with respect to the Fourth Mezzanine Loan, the First Mezzanine Loan Liabilities, the Second Mezzanine Loan Liabilities, and the Third Mezzanine Loan
Liabilities; (v) with respect to the Fifth Mezzanine Loan, the First Mezzanine Loan Liabilities, the Second Mezzanine Loan Liabilities, the Third Mezzanine Loan Liabilities and the Fourth
Mezzanine Loan Liabilities, (vi) with respect to the Sixth Mezzanine Loan, the First Mezzanine Loan Liabilities, the Second Mezzanine Loan Liabilities, the Third Mezzanine Loan Liabilities, the
Fourth Mezzanine Loan Liabilities and the Fifth Mezzanine Loan Liabilities and (vii) with respect to the Seventh Mezzanine Loan, the First Mezzanine Loan Liabilities, the Second Mezzanine Loan
Liabilities, the Third Mezzanine Loan Liabilities, the Fourth Mezzanine Loan Liabilities, the Fifth Mezzanine Loan Liabilities and the Sixth Mezzanine Loan Liabilities. As the context requires, the
Senior Junior Loan Liabilities shall have the following order of priority: (i) first, the First Mezzanine Loan Liabilities; (ii) second, the Second Mezzanine Loan Liabilities;
(iii) third, the Third Mezzanine Loan Liabilities; (iv) fourth, the Fourth Mezzanine Loan Liabilities; (v) fifth, the Fifth Mezzanine Loan Liabilities; (vi) sixth, the
Sixth Mezzanine Loan Liabilities and (vii) seventh, the Seventh Mezzanine Loan Liabilities. 

        "Senior Junior Loan Modification" has the meaning provided in Section 8(c) hereof. 

        "Senior Junior Loan Purchase Price" has the meaning provided in Section 14(a). 

17

 

  
        "Senior Junior Loans" means (i) with respect to the First Mezzanine Loan, none of the other Junior Loans; (ii) with respect
to the Second Mezzanine Loan, First Mezzanine Loan; (iii) with respect to the Third Mezzanine Loan, the First Mezzanine Loan and the Second Mezzanine Loan; (iv) with respect to the
Fourth Mezzanine Loan, the First Mezzanine Loan, the Second Mezzanine Loan and the Third Mezzanine Loan; (v) with respect to the Fifth Mezzanine Loan, the First Mezzanine Loan, the Second
Mezzanine Loan, the Third Mezzanine Loan and the Fourth Mezzanine Loan; (vi) with respect to the Sixth Mezzanine Loan, the First Mezzanine Loan, the Second Mezzanine Loan, the Third Mezzanine
Loan, the Fourth Mezzanine Loan and the Fifth Mezzanine Loan and (vii) with respect to the Seventh Mezzanine Loan, the First Mezzanine Loan, the Second Mezzanine Loan, the Third Mezzanine Loan,
the Fourth Mezzanine Loan, the Fifth Mezzanine Loan and the Sixth Mezzanine Loan. As the context requires, Senior Junior Loans shall have the following order of priority: (i) first, First
Mezzanine Loan; (ii) second, Second Mezzanine Loan; (iii) third, Third Mezzanine Loan; (iv) fourth, Fourth Mezzanine Loan; (v) fifth, the Fifth Mezzanine Loan,
(vi) sixth, the Sixth Mezzanine Loan and (vii) seventh, the Seventh Mezzanine Loan. 

        "Senior Lender" has the meaning set forth in the Recitals hereto, and if the Senior Loan
has been split into two (2) or more loans in connection with the removal of an Individual Property or Properties from the Senior Loan in accordance with  Section 15(n) hereof, the holder of
each such split loan; provided notice thereof has been given
to each Junior Lender and provided that each such holder shall have assumed the obligations of Senior Lender hereunder in writing. 

        "Senior Loan" has the meaning set forth in the Recitals hereto. 

        "Senior Loan Agreement" has the meaning set forth in the Recitals hereto. 

        "Senior Loan Cash Management Agreement" means any cash management agreement or agreements executed in connection with, or cash management
provisions of, the Senior Loan Documents. 

        "Senior Loan Default Notice" has the meaning set forth in Section 12(a) hereof. 

        "Senior Loan Documents" has the meaning set forth in the Recitals hereto. 

        "Senior Loan Liabilities" shall mean, collectively, all of the indebtedness, liabilities and obligations of Borrower under any Senior Loan
Document, including, without limitation (i) the principal amount of, and accrued interest on (including, without limitation, any interest which accrues after the commencement of any case,
proceeding or other action relating to the bankruptcy, insolvency or reorganization of Borrower, whether or not such interest would be allowed in such case, proceeding or action), the Senior Loan,
(ii) all other indebtedness, obligations and liabilities of Borrower to Senior Lender now existing or hereafter incurred or created under the Senior Loan Documents, and (iii) all other
indebtedness, obligations and liabilities of Borrower to Senior Lender now existing or hereafter incurred, created and arising from or relating to the Senior Loan, including, without limitation, any
late charges, default interest, prepayment fees or premiums (including spread maintenance and yield maintenance premiums), exit fees, advances and post-petition interest. 

        "Senior Loan Modification" has the meaning set forth in Section 8(a) hereof. 

        "Senior Loan Purchase Price" has the meaning set forth in Section 14(a) hereof. 

        "Senior Note" has the meaning set forth in the Recitals hereto. 

        "Senior Noteholders" has the meaning provided in the Recitals hereto. 

        "Separate Collateral" means, with respect to each Junior Loan, collectively, (i) the Equity Collateral, (ii) the accounts
(and monies therein from time to time) established pursuant to each of the Junior Loan Cash Management Agreements, and (iii) any other collateral or benefits, including guarantees or interest
rate cap or hedging agreements, given as security for each of the Junior Loans 

18

 

pursuant
to the Junior Loan Documents, in each case not constituting security for the Senior Loan or any Senior Junior Loans. 

        "Separate Collateral Enforcement Action" means any action or proceeding or other exercise of a Junior Lender's rights and remedies under
its respective Junior Loan Documents, at law or in equity, or otherwise, in order to realize upon any of its respective Separate Collateral (including, without limitation, an assignment in lieu of
foreclosure or other negotiated settlement in lieu of any such enforcement action). 

        "Seventh Mezzanine Borrower" has the meaning set forth on Schedule 1 attached
hereto. 

        "Seventh Mezzanine Cash Management Agreement" means any cash management agreement executed in connection with, or the cash management
provisions of, the Seventh Mezzanine Loan Documents. 

        "Seventh Mezzanine Lender" has the meaning set forth in the Recitals hereto. 

        "Seventh Mezzanine Loan" has the meaning set forth in the Recitals hereto. 

        "Seventh Mezzanine Loan Agreement" has the meaning set forth in the Recitals hereto. 

        "Seventh Mezzanine Loan Documents" has the meaning set forth in the Recitals hereto. 

        "Seventh Mezzanine Loan Liabilities" means, collectively, all of the indebtedness, liabilities and obligations of Seventh Mezzanine
Borrower under any Seventh Mezzanine Loan Document, including, without limitation (i) the principal amount of, and accrued interest on (including, without limitation, any interest which accrues
after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of Seventh Mezzanine Borrower, whether or not such interest would be allowed in
such case, proceeding or action), the Seventh Mezzanine Loan, (ii) all other indebtedness, obligations and liabilities of Seventh Mezzanine Borrower to Seventh Mezzanine Lender now existing or
hereafter incurred or created under the Seventh Mezzanine Loan Documents, and (iii) all other indebtedness, obligations and liabilities of Seventh Mezzanine Borrower to Seventh Mezzanine Lender
now existing or hereafter incurred, created and arising from or relating to the Seventh Mezzanine Loan, including, without limitation, any late charges, default interest, prepayment fees or premiums
(including spread maintenance and yield maintenance premiums), exit fees, advances and post-petition interest. 

        "Seventh Mezzanine Note" has the meaning set forth in the Recitals hereto. 

        "Seventh Mezzanine Noteholders" has the meaning provided in the Recitals hereto. 

        "Seventh Mezzanine Pledge Agreement" has the meaning set forth in the Recitals hereto. 

        "Sixth Mezzanine Borrower" has the meaning set forth on Schedule 1 attached hereto. 

        "Sixth Mezzanine Cash Management Agreement" means any cash management agreement executed in connection with, or the cash management
provisions of, the Sixth Mezzanine Loan Documents. 

        "Sixth Mezzanine Lender" has the meaning set forth in the Recitals hereto. 

        "Sixth Mezzanine Loan" has the meaning set forth in the Recitals hereto. 

        "Sixth Mezzanine Loan Agreement" has the meaning set forth in the Recitals hereto. 

        "Sixth Mezzanine Loan Documents" has the meaning set forth in the Recitals hereto. 

        "Sixth Mezzanine Loan Liabilities" means, collectively, all of the indebtedness, liabilities and obligations of Sixth Mezzanine Borrower
under any Sixth Mezzanine Loan Document, including, without limitation (i) the principal amount of, and accrued interest on (including, without limitation, 

19

 

any
interest which accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of Sixth Mezzanine Borrower, whether or not such
interest would be allowed in such case, proceeding or action), the Sixth Mezzanine Loan, (ii) all other indebtedness, obligations and liabilities of Sixth Mezzanine Borrower to Sixth Mezzanine
Lender now existing or hereafter incurred or created under the Sixth Mezzanine Loan Documents, and (iii) all other indebtedness, obligations and liabilities of Sixth Mezzanine Borrower to Sixth
Mezzanine Lender now existing or hereafter incurred, created and arising from or relating to the Sixth Mezzanine Loan, including, without limitation, any late charges, default interest, prepayment
fees or premiums (including spread maintenance and yield maintenance premiums), exit fees, advances and post-petition interest. 

        "Sixth Mezzanine Note" has the meaning set forth in the Recitals hereto. 

        "Sixth Mezzanine Noteholders" has the meaning provided in the Recitals hereto. 

        "Sixth Mezzanine Pledge Agreement" has the meaning set forth in the Recitals hereto. 

        "South Carolina Management Agreement" shall mean, collectively and individually as the context shall require, those certain Management
Agreements, each dated as of the closing date of the Senior Loan, entered into with respect to each Individual Property that is located in the State of South Carolina, between the operator of a
Property located in South Carolina and HCR III Healthcare, LLC, a Delaware limited liability company, as the master tenant. 

        "SPE Constituent Entity" means any entity required to be a single purpose entity pursuant to the terms of the Senior Loan Documents (but
excluding any Junior Borrower). 

        "Subordinate Junior Borrowers" means (i) with respect to the First Mezzanine Loan, the Second Mezzanine Borrower, the Third
Mezzanine Borrower, the Fourth Mezzanine Borrower, the Fifth Mezzanine Borrower, the Sixth Mezzanine Borrower and the Seventh Mezzanine Borrower; (ii) with respect to the Second Mezzanine Loan,
the Third Mezzanine Borrower, the Fourth Mezzanine Borrower, the Fifth Mezzanine Borrower, the Sixth Mezzanine Borrower and the Seventh Mezzanine Borrower; (iii) with respect to the Third
Mezzanine Loan, the Fourth Mezzanine Borrower, the Fifth Mezzanine Borrower, the Sixth Mezzanine Borrower and the Seventh Mezzanine Borrower; (iv) with respect to the Fourth Mezzanine Loan, the
Fifth Mezzanine Borrower, the Sixth Mezzanine Borrower and the Seventh Mezzanine Borrower; (v) with respect to the Fifth Mezzanine Loan, the Sixth Mezzanine Borrower and the Seventh Mezzanine
Borrower; (vi) with respect to the Sixth Mezzanine Loan, the Seventh Mezzanine Borrower and (vii) with respect to the Seventh Mezzanine Loan, none of the other Junior Borrowers. As the
context requires, the Subordinate Junior Borrowers shall have the following order of priority: (i) first, the First Mezzanine Borrower; (ii) second, the Second Mezzanine Borrower;
(iii) third, the Third Mezzanine Borrower; (iv) fourth, the Fourth Mezzanine Borrower; (v) fifth, the Fifth Mezzanine Borrower; (vi) sixth, the Sixth Mezzanine Borrower and
(vii) seventh, the Seventh Mezzanine Borrower. 

        "Subordinate Junior Lenders" means (i) with respect to the First Mezzanine Loan, the Second Mezzanine Lender, the Third Mezzanine
Lender, the Fourth Mezzanine Lender, the Fifth Mezzanine Lender, the Sixth Mezzanine Lender and the Seventh Mezzanine Lender; (ii) with respect to the Second Mezzanine Loan, the Third Mezzanine
Lender, the Fourth Mezzanine Lender, the Fifth Mezzanine Lender, the Sixth Mezzanine Lender and the Seventh Mezzanine Lender; (iii) with respect to the Third Mezzanine Loan, the Fourth
Mezzanine Lender, the Fifth Mezzanine Lender, the Sixth Mezzanine Lender and the Seventh Mezzanine Lender; (iv) with respect to the Fourth Mezzanine Loan, the Fifth Mezzanine Lender the Sixth
Mezzanine Lender and the Seventh Mezzanine Lender; (v) with respect to the Fifth Mezzanine Loan, the Sixth Mezzanine Lender and the Seventh Mezzanine Lender; (vi) with respect to the
Sixth Mezzanine Loan, the Seventh Mezzanine Lender and (vii) with respect to the Seventh Mezzanine Loan, none of the other Junior Lenders. As the context requires, the Subordinate Junior
Lenders shall have the following order of priority: (i) first, the First Mezzanine 

20

 

Lender;
(ii) second, the Second Mezzanine Lender; (iii) third, the Third Mezzanine Lender; (iv) fourth, the Fourth Mezzanine Lender; (v) fifth, the Fifth Mezzanine Lender;
(vi) sixth, the Sixth Mezzanine Lender and (vii) seventh, the Seventh Mezzanine Lender. 

        "Subordinate Junior Loan Agreements" means (i) with respect to the First Mezzanine Loan, the Second Mezzanine Loan Agreement, the
Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan Agreement, the Fifth Mezzanine Loan Agreement, the Sixth Mezzanine Loan Agreement and the Seventh Mezzanine Loan Agreement; (ii) with
respect to the Second Mezzanine Loan, the Third Mezzanine Loan Agreement, the Fourth Mezzanine Loan Agreement, the Fifth Mezzanine Loan Agreement, the Sixth Mezzanine Loan Agreement and the Seventh
Mezzanine Loan Agreement; (iii) with respect to the Third Mezzanine Loan, the Fourth Mezzanine Loan Agreement, the Fifth Mezzanine Loan Agreement, the Sixth Mezzanine Loan Agreement and the
Seventh Mezzanine Loan Agreement; (iv) with respect to the Fourth Mezzanine Loan, the Fifth Mezzanine Loan Agreement, the Sixth Mezzanine Loan Agreement and the Seventh Mezzanine Loan
Agreement; (v) with respect to the Fifth Mezzanine Loan, the Sixth Mezzanine Loan Agreement and the Seventh Mezzanine Loan Agreement; (vi) with respect to the Sixth Mezzanine Loan, the
Seventh Mezzanine Loan Agreement and (vii) with respect to the Seventh Mezzanine Loan, none of the other Junior Loan Agreements. As the context requires, the Subordinate Junior Loan Agreements
shall have the following order of priority: (i) first, the First Mezzanine Loan Agreement; (ii) second, the Second Mezzanine Loan Agreement; (iii) third, the Third Mezzanine Loan
Agreement; (iv) fourth, the Fourth Mezzanine Loan Agreement; (v) fifth, the Fifth Mezzanine Loan Agreement, (vi) sixth, the Sixth Mezzanine Loan Agreement and
(vii) seventh, the Seventh Mezzanine Loan Agreement. 

        "Subordinate Junior Loan Cash Management Agreements" means (i) with respect to the First Mezzanine Loan, the Second Mezzanine Cash
Management Agreement, the Third Mezzanine Cash Management Agreement, the Fourth Mezzanine Cash Management Agreement the Fifth Mezzanine Cash Management Agreement, the Sixth Mezzanine Cash Management
Agreement and the Seventh Mezzanine Cash Management Agreement; (ii) with respect to the Second Mezzanine Loan, the Third Mezzanine Cash Management Agreement, the Fourth Mezzanine Cash
Management Agreement, the Fifth Mezzanine Cash Management Agreement, the Sixth Mezzanine Cash Management Agreement and the Seventh Mezzanine Cash Management Agreement; (iii) with respect to the
Third Mezzanine Loan, the Fourth Mezzanine Cash Management Agreement, the Fifth Mezzanine Cash Management Agreement, the Sixth Mezzanine Cash Management Agreement and the Seventh Mezzanine Cash
Management Agreement; (iv) with respect to the Fourth Mezzanine Loan, the Fifth Mezzanine Cash Management Agreement, the Sixth Mezzanine Cash Management Agreement and the Seventh Mezzanine Cash
Management Agreement; (v) with respect to the Fifth Mezzanine Loan, the Sixth Mezzanine Cash Management Agreement and the Seventh Mezzanine Cash Management Agreement; (vi) with respect
to the Sixth Mezzanine Loan, the Seventh Mezzanine Cash Management Agreement and (vii) with respect to the Seventh Mezzanine Loan, none of the other Junior Loan Cash Management Agreements. As
the context requires, the Subordinate Junior Loan Cash Management Agreements shall have the following order of priority: (i) first, the First Mezzanine Cash Management Agreement;
(ii) second, the Second Mezzanine Cash Management Agreement; (iii) third, the Third Mezzanine Cash Management Agreement; (iv) fourth, the Fourth Mezzanine Cash Management
Agreement, (v) fifth, the Fifth Mezzanine Cash Management Agreement; (vi) sixth, the Sixth Mezzanine Cash Management Agreement and (vii) seventh, the Seventh Mezzanine Cash
Management Agreement. 

        "Subordinate Junior Loan Documents" means (i) with respect to the First Mezzanine Loan, the Second Mezzanine Loan Documents, the
Third Mezzanine Loan Documents, the Fourth Mezzanine Loan Documents, the Fifth Mezzanine Loan Documents, the Sixth Mezzanine Loan Documents and the Seventh Mezzanine Loan Documents; (ii) with
respect to the Second Mezzanine Loan, the Third Mezzanine Loan Documents, the Fourth Mezzanine Loan Documents, the Fifth Mezzanine Loan 

21

 

Documents,
the Sixth Mezzanine Loan Documents and the Seventh Mezzanine Loan Documents; (iii) with respect to the Third Mezzanine Loan, the Fourth Mezzanine Loan Documents, the Fifth Mezzanine
Loan Documents, the Sixth Mezzanine Loan Documents and the Seventh Mezzanine Loan Documents; (iv) with respect to the Fourth Mezzanine Loan, the Fifth Mezzanine Loan Documents, the Sixth
Mezzanine Loan Documents and the Seventh Mezzanine Loan Documents; (v) with respect to the Fifth Mezzanine Loan, the Sixth Mezzanine Loan Documents and the Seventh Mezzanine Loan Documents and
(vi) with respect to the Sixth Mezzanine Loan, the Seventh Mezzanine Loan Documents; (vii) with respect to the Seventh Mezzanine Loan, none of the other Junior Loan Documents. As the
context requires, the Subordinate Junior Loan Documents shall have the following order of priority: (i) first, the First Mezzanine Loan Documents; (ii) second, the Second Mezzanine Loan
Documents; (iii) third, the Third Mezzanine Loan Documents; (iv) fourth, the Fourth Mezzanine Loan Documents; (v) fifth, the Fifth Mezzanine Loan Documents; (vi) sixth, the
Sixth Mezzanine Loan Documents and (vii) seventh, the Seventh Mezzanine Loan Documents. 

        "Subordinate Junior Loans" means (i) with respect to the First Mezzanine Loan, the Second Mezzanine Loan, the Third Mezzanine Loan,
the Fourth Mezzanine Loan, the Fifth Mezzanine Loan, the Sixth Mezzanine Loan and the Seventh Mezzanine Loan; (ii) with respect to the Second Mezzanine Loan, the Third Mezzanine Loan, the
Fourth Mezzanine Loan, the Fifth Mezzanine Loan, the Sixth Mezzanine Loan and the Seventh Mezzanine Loan; (iii) with respect to the Third Mezzanine Loan, the Fourth Mezzanine Loan, the Fifth
Mezzanine Loan, the Sixth Mezzanine Loan and the Seventh Mezzanine Loan; (iv) with respect to the Fourth Mezzanine Loan, the Fifth Mezzanine Loan, the Sixth Mezzanine Loan and the Seventh
Mezzanine Loan; (v) with respect to the Fifth Mezzanine Loan, the Sixth Mezzanine Loan and the Seventh Mezzanine Loan; (vi) with respect to the Sixth Mezzanine Loan, the Seventh
Mezzanine Loan and (vii) with respect to the Seventh Mezzanine Loan, none of the other Junior Loans. As the context requires, the Subordinate Junior Loans shall have the following order of
priority: (i) first, the First Mezzanine Loan; (ii) second, the Second Mezzanine Loan; (iii) third, the Third Mezzanine Loan; (iv) fourth, the Fourth Mezzanine Loan;
(v) fifth, the Fifth Mezzanine Loan; (vi) sixth, the Sixth Mezzanine Loan and (vii) seventh, the Seventh Mezzanine Loan. 

        "Third Party Agreement" has the meaning set forth in Section 6(a) hereof. 

        "Third Mezzanine Borrower" has the meaning set forth on Schedule 1 attached hereto. 

        "Third Mezzanine Cash Management Agreement" means any cash management agreement executed in connection with, or the cash management
provisions of, the Third Mezzanine Loan Documents. 

        "Third Mezzanine Lender" has the meaning set forth in the Recitals hereto. 

        "Third Mezzanine Loan" has the meaning set forth in the Recitals hereto. 

        "Third Mezzanine Loan Agreement" has the meaning set forth in the Recitals hereto. 

        "Third Mezzanine Loan Documents" has the meaning set forth in the Recitals hereto. 

        "Third Mezzanine Loan Liabilities" means, collectively, all of the indebtedness, liabilities and obligations of Fourth Mezzanine Borrower
under any Third Mezzanine Loan Document, including, without limitation (i) the principal amount of, and accrued interest on (including, without limitation, any interest which accrues after the
commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of Third Mezzanine Borrower, whether or not such interest would be allowed in such case,
proceeding or action), the Third Mezzanine Loan, (ii) all other indebtedness, obligations and liabilities of Third Mezzanine Borrower to Third Mezzanine Lender now existing or hereafter
incurred or created under the Third Mezzanine Loan Documents, and (iii) all other indebtedness, obligations and liabilities of Third Mezzanine Borrower to Third Mezzanine Lender now existing or
hereafter incurred, created and arising from or relating to the Third Mezzanine Loan, 

22

 

including,
without limitation, any late charges, default interest, prepayment fees or premiums (including spread maintenance and yield maintenance premiums), exit fees, advances and
post-petition interest. 

        "Third Mezzanine Note" has the meaning set forth in the Recitals hereto. 

        "Third Mezzanine Noteholders" has the meaning provided in the Recitals hereto. 

        "Third Mezzanine Pledge Agreement" has the meaning set forth in the Recitals hereto. 

        "Third Party Agreement" has the meaning set forth in Section 6(a) hereof. 

        "Third Party Obligor" has the meaning set forth in Section 6(a) hereof. 

        "Transfer" means any assignment, pledge, conveyance, sale, transfer, mortgage, encumbrance, grant of a security interest, issuance of a
participation interest, or other disposition, either directly or indirectly, by operation of law or otherwise. 

        (a)   For
all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: 

          (i)  all
capitalized terms defined in the recitals to this Agreement shall have the meanings ascribed thereto whenever used in this Agreement and the terms defined in this
Agreement have the meanings assigned to them in this Agreement, and the use of any gender herein shall be deemed to include the other genders; 

         (ii)  terms
not otherwise defined herein shall have the meaning assigned to them in the Senior Loan Agreement; 

        (iii)  all
references in this Agreement to designated Sections, Subsections, Paragraphs, Articles, Exhibits, Schedules and other subdivisions or addenda without reference to
a document are to the designated sections, subsections, paragraphs and articles and all other subdivisions of and exhibits, schedules and all other addenda to this Agreement, unless otherwise
specified; 

        (iv)  a
reference to a Subsection without further reference to a Section is a reference to such Subsection as contained in the same Section in which the reference appears,
and this rule shall apply to Paragraphs and other subdivisions; 

         (v)  the
terms "includes" or "including" shall mean without limitation by reason of enumeration; 

        (vi)  the
words "herein", "hereof", "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular provision; 

       (vii)  the
headings and captions used in this Agreement are for convenience of reference only and do not define, limit or describe the scope or intent of the provisions of
this Agreement; 

      (viii)  the
words "to Junior Lender's knowledge" or "to the knowledge of Junior Lender" (or words of similar meaning) shall mean to the actual knowledge of officers of the
applicable Junior Lender with direct oversight responsibility for its Junior Loan without independent investigation or inquiry and without any imputation whatsoever; and 

        (ix)  the
words "to Senior Lender's knowledge" or "to the knowledge of Senior Lender" (or words of similar meaning) shall mean to the actual knowledge of officers of Senior
Lender with direct oversight responsibility for the Senior Loan without independent investigation or inquiry and without any imputation whatsoever. 

23

 

        Section 2.    Characterization of the Junior Loans.    

        (a)    Senior Loan.    Each Junior Lender, with respect only to its Junior Loan, hereby acknowledges that
(i) Senior Borrower will not ever have any liability or obligation whatsoever with respect to the Junior Notes or otherwise in connection with the payment of the Junior Loans, (ii) the
Junior Loans do not constitute or impose, and shall not be deemed or construed as constituting or imposing now or hereafter, a lien or encumbrance upon, or security interest in any portion of the
Premises or any other collateral securing the Senior Loan or otherwise grant to any Junior Lender the status as a creditor of Senior Borrower, (iii) they shall not assert, claim or raise as a
defense, any such lien, encumbrance or security interest in the Premises or any status as a creditor of Senior Borrower in any action or proceeding, including any insolvency or bankruptcy proceeding
commenced by or against Senior Borrower and (iv) they shall not assert, pursue, confirm or acquiesce in any way to any recharacterization of the Junior Loans as having conferred upon any Junior
Lender any lien or encumbrance upon, or security interest in, the Premises or any portion thereof or as having conferred upon Junior Lenders the status of a creditor of Senior Borrower. 

        (b)    First Mezzanine Loan.    First Mezzanine Lender hereby acknowledges that (i) no Junior Borrower other
than the First Mezzanine Borrower will ever have any liability or obligation whatsoever with respect to the First Mezzanine Note or otherwise in connection with the payment of the First Mezzanine
Loan; (ii) the First Mezzanine Loan does not constitute or impose, and shall not be deemed or construed as constituting or imposing now or hereafter, a lien or encumbrance upon, or security
interest in any portion of the Separate Collateral securing any Junior Loan other than the First Mezzanine Loan; (iii) the First Mezzanine Loan does not grant to First Mezzanine Lender the
status as a creditor of any Junior Borrower other than First Mezzanine Borrower; (iv) First Mezzanine Lender shall not assert, claim or raise as a defense, any such lien, encumbrance or
security interest in the Separate Collateral securing any Junior Loan other than the First Mezzanine Loan; (v) First Mezzanine Lender shall not assert, claim or raise as a defense any status as
a creditor of any Junior Borrower other than First Mezzanine Borrower in any action or proceeding, including any insolvency or bankruptcy proceeding commenced by or against First Mezzanine Borrower;
and (vi) First Mezzanine Lender shall not assert, pursue, confirm or acquiesce in any way to any recharacterization of the First Mezzanine Loan as
having conferred upon First Mezzanine Lender any lien or encumbrance upon, or security interest in, the Separate Collateral securing any Junior Loan other than the First Mezzanine Loan or as having
conferred upon First Mezzanine Lender the status of a creditor of any Junior Borrower other than First Mezzanine Borrower. 

        (c)    Second Mezzanine Loan.    Second Mezzanine Lender hereby acknowledges that (i) no Junior Borrower other
than the Second Mezzanine Borrower will ever have any liability or obligation whatsoever with respect to the Second Mezzanine Note or otherwise in connection with the payment of the Second Mezzanine
Loan; (ii) the Second Mezzanine Loan does not constitute or impose, and shall not be deemed or construed as constituting or imposing now or hereafter, a lien or encumbrance upon, or security
interest in any portion of the Separate Collateral securing any Junior Loan other than the Second Mezzanine Loan; (iii) the Second Mezzanine Loan does not grant to Second Mezzanine Lender the
status as a creditor of any Junior Borrower other than Second Mezzanine Borrower; (iv) Second Mezzanine Lender shall not assert, claim or raise as a defense, any such lien, encumbrance or
security interest in the Separate Collateral securing any Junior Loan other than the Second Mezzanine Loan; (v) Second Mezzanine Lender shall not assert, claim or raise as a defense any status
as a creditor of any Junior Borrower other than Second Mezzanine Borrower in any action or proceeding, including any insolvency or bankruptcy proceeding commenced by or against Second Mezzanine
Borrower; and (vi) Second Mezzanine Lender shall not assert, pursue, confirm or acquiesce in any way to any recharacterization of the Second Mezzanine Loan as having conferred upon Second
Mezzanine Lender any lien or encumbrance upon, or security interest in, the Separate Collateral securing any Junior Loan other than the Second Mezzanine Loan or as having conferred upon Second 

24

 

Mezzanine
Lender the status of a creditor of any Junior Borrower other than Second Mezzanine Borrower. 

        (d)    Third Mezzanine Loan.    Third Mezzanine Lender hereby acknowledges that (i) no Junior Borrower other
than the Third Mezzanine Borrower will ever have any liability or obligation whatsoever with respect to the Third Mezzanine Note or otherwise in connection with the payment of the Third Mezzanine
Loan; (ii) the Third Mezzanine Loan does not constitute or impose, and shall not be deemed or construed as constituting or imposing now or hereafter, a lien or encumbrance upon, or security
interest in any portion of the Separate Collateral securing any Junior Loan other than the Third Mezzanine Loan; (iii) the Third Mezzanine Loan does not grant to Third Mezzanine Lender the
status as a creditor of any Junior Borrower other than Third Mezzanine Borrower; (iv) Third Mezzanine Lender shall not assert, claim or raise as a defense, any such lien, encumbrance or
security interest in the Separate Collateral securing any Junior Loan other than the Third Mezzanine Loan; (v) Third Mezzanine Lender shall not assert, claim or raise as a defense any status as
a creditor of any Junior Borrower other than Third Mezzanine Borrower in any action or proceeding, including any insolvency or bankruptcy proceeding commenced by or against Third Mezzanine Borrower;
and (vi) Third Mezzanine Lender shall not assert, pursue, confirm or acquiesce in any way to any recharacterization of the Third Mezzanine Loan as having conferred upon Third Mezzanine Lender
any lien or encumbrance upon, or security interest in, the Separate Collateral securing any Junior Loan other than the Third Mezzanine Loan or as having conferred upon Third Mezzanine Lender the
status of a creditor of any Junior Borrower other than Third Mezzanine Borrower. 

        (e)    Fourth Mezzanine Loan.    Fourth Mezzanine Lender hereby acknowledges that (i) no Junior Borrower other
than the Fourth Mezzanine Borrower will ever have any liability or obligation whatsoever with respect to the Fourth Mezzanine Note or otherwise in connection with the payment of the Fourth Mezzanine
Loan; (ii) the Fourth Mezzanine Loan does not constitute or impose, and shall not be deemed or construed as constituting or imposing now or hereafter, a lien or encumbrance upon, or security
interest in any portion of the Separate Collateral securing any Junior Loan other than the Fourth Mezzanine Loan; (iii) the Fourth Mezzanine Loan does not grant to Fourth Mezzanine Lender the
status as a creditor of any Junior Borrower other than Fourth Mezzanine Borrower; (iv) Fourth Mezzanine Lender shall not assert, claim or raise as a defense, any such lien, encumbrance or
security interest in the Separate Collateral securing any Junior Loan other than the Fourth Mezzanine Loan; (v) Fourth Mezzanine Lender shall not assert, claim or raise as a defense any status
as a creditor of any Junior Borrower other than Fourth Mezzanine Borrower in any action or proceeding, including any insolvency or bankruptcy proceeding commenced by or against Fourth Mezzanine
Borrower; and (vi) Fourth Mezzanine Lender shall not assert, pursue, confirm or acquiesce in any way to any recharacterization of the Fourth Mezzanine Loan as having conferred upon Fourth
Mezzanine Lender any lien or encumbrance upon, or security interest in, the Separate Collateral securing any Junior Loan other than the Fourth Mezzanine Loan or as having conferred upon Fourth
Mezzanine Lender the status of a creditor of any Junior Borrower other than Fourth Mezzanine Borrower. 

        (f)    Fifth Mezzanine Loan.    Fifth Mezzanine Lender hereby acknowledges that (i) no Junior Borrower other
than the Fifth Mezzanine Borrower will ever have any liability or obligation whatsoever with respect to the Fifth Mezzanine Note or otherwise in connection with the payment of the Fifth Mezzanine
Loan; (ii) the Fifth Mezzanine Loan does not constitute or impose, and shall not be deemed or construed as constituting or imposing now or hereafter, a lien or encumbrance upon, or security
interest in any portion of the Separate Collateral securing any Junior Loan other than the Fifth Mezzanine Loan; (iii) the Fifth Mezzanine Loan does not grant to Fifth Mezzanine Lender the
status as a creditor of any Junior Borrower other than Fifth Mezzanine Borrower; (iv) Fifth Mezzanine Lender shall not assert, claim or raise as a defense, any such lien, encumbrance or
security interest in the Separate Collateral securing any Junior Loan other than the Fifth Mezzanine Loan; (v) Fifth Mezzanine Lender shall not assert, claim or raise as a defense any status as
a creditor of any Junior 

25

 

Borrower
other than Fifth Mezzanine Borrower in any action or proceeding, including any insolvency or bankruptcy proceeding commenced by or against Fifth Mezzanine Borrower; and (vi) Fifth
Mezzanine Lender shall not assert, pursue, confirm or acquiesce in any way to any recharacterization of the Fifth Mezzanine Loan as having conferred upon Fifth Mezzanine Lender any lien or encumbrance
upon, or security interest in, the Separate Collateral securing any Junior Loan other than the Fifth Mezzanine Loan or as having conferred upon Fifth Mezzanine Lender the status of a creditor of any
Junior Borrower other than Fifth Mezzanine Borrower. 

        (g)    Sixth Mezzanine Loan.    Sixth Mezzanine Lender hereby acknowledges that (i) no Junior Borrower other
than the Sixth Mezzanine Borrower will ever have any liability or obligation whatsoever with respect to the Sixth Mezzanine Note or otherwise in connection with the payment of the Sixth Mezzanine
Loan; (ii) the Sixth Mezzanine Loan does not constitute or impose, and shall not be deemed or construed as constituting or imposing now or hereafter, a lien or encumbrance upon, or security
interest in any portion of the Separate Collateral securing any Junior Loan other than the Sixth Mezzanine Loan; (iii) the Sixth Mezzanine Loan does not grant to Sixth Mezzanine Lender the
status as a creditor of any Junior Borrower other than Sixth Mezzanine Borrower; (iv) Sixth Mezzanine Lender
shall not assert, claim or raise as a defense, any such lien, encumbrance or security interest in the Separate Collateral securing any Junior Loan other than the Sixth Mezzanine Loan; (v) Sixth
Mezzanine Lender shall not assert, claim or raise as a defense any status as a creditor of any Junior Borrower other than Sixth Mezzanine Borrower in any action or proceeding, including any insolvency
or bankruptcy proceeding commenced by or against Sixth Mezzanine Borrower; and (vi) Sixth Mezzanine Lender shall not assert, pursue, confirm or acquiesce in any way to any recharacterization of
the Sixth Mezzanine Loan as having conferred upon Sixth Mezzanine Lender any lien or encumbrance upon, or security interest in, the Separate Collateral securing any Junior Loan other than the Sixth
Mezzanine Loan or as having conferred upon Sixth Mezzanine Lender the status of a creditor of any Junior Borrower other than Sixth Mezzanine Borrower. 

        (h)    Seventh Mezzanine Loan.    Seventh Mezzanine Lender hereby acknowledges that (i) no Junior Borrower
other than the Seventh Mezzanine Borrower will ever have any liability or obligation whatsoever with respect to the Seventh Mezzanine Note or otherwise in connection with the payment of the Seventh
Mezzanine Loan; (ii) the Seventh Mezzanine Loan does not constitute or impose, and shall not be deemed or construed as constituting or imposing now or hereafter, a lien or encumbrance upon, or
security interest in any portion of the Separate Collateral securing any Junior Loan other than the Seventh Mezzanine Loan; (iii) the Seventh Mezzanine Loan does not grant to Seventh Mezzanine
Lender the status as a creditor of any Junior Borrower other than Seventh Mezzanine Borrower; (iv) Seventh Mezzanine Lender shall not assert, claim or raise as a defense, any such lien,
encumbrance or security interest in the Separate Collateral securing any Junior Loan other than the Seventh Mezzanine Loan; (v) Seventh Mezzanine Lender shall not assert, claim or raise as a
defense any status as a creditor of any Junior Borrower other than Seventh Mezzanine Borrower in any action or proceeding, including any insolvency or bankruptcy proceeding commenced by or against
Seventh Mezzanine Borrower; and (vi) Seventh Mezzanine Lender shall not assert, pursue, confirm or acquiesce in any way to any recharacterization of the Seventh Mezzanine Loan as having
conferred upon Seventh Mezzanine Lender any lien or encumbrance upon, or security interest in, the Separate Collateral securing any Junior Loan other than the Seventh Mezzanine Loan or as having
conferred upon Seventh Mezzanine Lender the status of a creditor of any Junior Borrower other than Seventh Mezzanine Borrower. 

        (i)    Junior Loans.    Senior Lender hereby acknowledges that (i) no Junior Borrower will ever have any
liability or obligation whatsoever with respect to the Senior Note or otherwise in connection with the payment of the Senior Loan; (ii) the Senior Loan does not constitute or impose, and shall
not be deemed or construed as constituting or imposing now or hereafter, a lien or encumbrance upon, or security interest in any portion of the Separate Collateral securing any Junior Loan;
(iii) the Senior 

26

 

Loan
does not grant to Senior Lender the status as a creditor of any Junior Borrower; (iv) Senior Lender shall not assert, claim or raise as a defense, any such lien, encumbrance or security
interest in the Separate Collateral securing any Junior Loan; (v) Senior Lender shall not assert, claim or raise as a defense any status as a creditor of any Junior Borrower in any action or
proceeding, including any insolvency or bankruptcy proceeding commenced by or against any Junior Borrower; and (vi) Senior Lender shall not assert, pursue, confirm or acquiesce in any way to
any recharacterization of the Senior Loan as having conferred upon Senior Lender any lien or encumbrance upon, or security interest in, the Separate Collateral securing any Junior Loan or as having
conferred upon Senior Lender the status of a creditor of any Junior Borrower. 

        Section 3.    Approval of Loans and Loan Documents.    

        (a)    Junior Lenders.    Each Junior Lender hereby acknowledges that (i) it has received and reviewed and,
subject to the terms and conditions of this Agreement, hereby consents to and approves of the making of the Senior Loan and each of the Junior Loans and, subject to the terms and provisions of this
Agreement, all of the terms and provisions of the Senior Loan Documents and each of the Junior Loan Documents; (ii) the execution, delivery and performance of the Senior Loan Documents and each
of the Junior Loan Documents will not constitute a default or an event which, with the giving of notice or the lapse of time, or both, would constitute a default under the Junior Loan Documents
relating to the Junior Loan held by such Junior Lender; (iii) none of Senior Lender or any of the other Junior Lenders are under any obligation or duty to, nor has Senior Lender or any of the
other Junior Lenders represented that either will, see to (A) the application of the proceeds of the Senior Loan by Borrower or any other Person to whom Senior Lender disburses such proceeds
and (B) the application of the proceeds of any Junior Loan other than the Junior Loan held by such Junior Lender; (iv) (A) any application or use of the proceeds of the Senior
Loan for purposes other than those provided in the Senior Loan Documents shall not affect, impair or defeat the terms and provisions of this Agreement or the Senior Loan Documents and (B) any
application or use of the proceeds of any Junior Loan other than the Junior Loan held by such Junior Lender for purposes other than those provided in the related Junior Loan Documents shall not
affect, impair or defeat the terms and provisions of this Agreement or the related Junior Loan Documents; and (v) any conditions precedent to such Junior Lender's consent to mezzanine or
partner financing as set forth in the Junior Loan Documents or any other agreements with Junior Borrowers, as they apply to the Junior Loan Documents or the making of the Junior Loans, have been
either satisfied or waived. 

        (b)    Senior Lender.    Senior Lender hereby acknowledges that (i) it has received and reviewed, and, subject
to the terms and conditions of this Agreement, hereby consents to and approves of the making of the Junior Loans and, subject to the terms and provisions of this Agreement, all of the terms and
provisions of the Junior Loan Documents; (ii) subject to the terms and provisions of this Agreement, the execution, delivery and performance of the Junior Loan Documents will not constitute a
default or an event which, with the giving of notice or the lapse of time, or both, would constitute a default under the Senior Loan Documents; (iii) none of the Junior Lenders are under any
obligation or duty to, nor has any Junior Lender represented that it will, see to the application of the proceeds of the Junior Loans; (iv) any application or use of the proceeds of the Junior
Loans for purposes other than those provided in the Junior Loan Documents shall not affect, impair or defeat the terms and provisions of this Agreement or the Junior Loan Documents; and (v) any
conditions precedent to Senior Lender's consent to mezzanine or partner financing as set forth in the Senior Loan Documents or any other agreements with the Senior Borrower, as they apply to the
Junior Loan Documents or the making of the Junior Loans, have been either satisfied or waived. Notwithstanding any provisions herein to the contrary, Senior Lender agrees that no default or Event of
Default under any of the Junior Loan Documents shall, in and of itself, constitute or give rise to a default or Event of Default under the Senior Loan Documents, entitle Senior Lender to accelerate
payments under the Senior Loan Documents or entitle Senior Lender to modify any provisions of the Senior Loan Documents; 

27

 

 provided, however, the circumstances giving rise to a default or Event of Default under the Junior Loan Documents may
independently give rise to a default or Event of Default under the Senior Loan Documents as provided for therein. 

        Section 4.    Representations and Warranties.    

        (a)    Senior Lender.    Senior Lender hereby represents and warrants to each of the Junior Lenders as follows: 

          (i)  Exhibit A attached hereto and made a part hereof is a true and correct listing of the material Senior Loan
Documents (including all amendments, modifications, replacements, restatements and supplements thereof) as of the date hereof. To Senior Lender's knowledge, there currently exists no default or event
which, with the giving of notice or the lapse of time, or both, would constitute a default under any of the Senior Loan Documents. 

         (ii)  Senior
Lender and the other Senior Noteholders (as defined in the Senior Loan Agreement) are the legal and beneficial owners of the Senior Loan free and clear of any
lien, security interest, option or other charge or encumbrance. 

        (iii)  There
are no conditions precedent to the effectiveness of this Agreement with respect to Senior Lender that have not been satisfied or waived. 

        (iv)  Senior
Lender has, independently and without reliance upon Junior Lenders and based on such documents and information as it has deemed appropriate, made its own credit
analysis and decision to make the Senior Loan and to enter into this Agreement. 

         (v)  Senior
Lender is duly organized and is validly existing under the laws of the jurisdiction under which it was organized with full power to execute, deliver, and perform
this Agreement and consummate the transactions contemplated hereby. 

        (vi)  All
actions necessary to authorize the execution, delivery, and performance of this Agreement on behalf of Senior Lender have been duly taken, and all such actions
continue in full force and effect as of the date hereof. 

       (vii)  Senior
Lender has duly executed and delivered this Agreement and this Agreement constitutes the legal, valid, and binding agreement of Senior Lender enforceable
against Senior Lender in accordance with its terms subject to (y) applicable bankruptcy, reorganization, insolvency and moratorium laws and (z) general principles of equity which may
apply regardless of whether a proceeding is brought in law or in equity. 

      (viii)  To
Senior Lender's knowledge, no consent of any other Person and no consent, license, approval, or authorization of, or exemption by, or registration or declaration
or filing with, any governmental authority, bureau or agency is required in connection with the execution, delivery or performance by Senior Lender of this Agreement or consummation by Senior Lender
of the transactions contemplated by this Agreement. 

        (ix)  None
of the execution, delivery and performance of this Agreement nor the consummation of the transactions contemplated by this Agreement will (v) violate or
conflict with any provision of the organizational or governing documents, if any, of Senior Lender, (w) to Senior Lender's knowledge, violate, conflict with, or result in the breach or
termination of, or otherwise give any other Person the right to terminate, or constitute (or with the giving of notice or lapse of time, or both, would constitute) a default under the terms of any
material contract, mortgage, lease, bond, indenture, agreement, or other instrument to which Senior Lender is a party or to which any of its properties are subject, (x) to Senior Lender's
knowledge, result in the creation of any lien, charge, encumbrance, mortgage, lease, claim, security interest, or other right or interest upon the properties or assets of Senior Lender pursuant to the
terms of any such material 

28

 

contract,
mortgage, lease, bond, indenture, agreement, franchise or other instrument, (y) violate any judgment, order, injunction, decree or award of any court, arbitrator, administrative
agency or governmental or regulatory body of which Senior Lender has knowledge against, or binding upon, Senior Lender or upon any of the securities, properties, assets, or business of Senior Lender
or (z) to Senior Lender's knowledge, constitute a violation by Senior Lender of any statute, law or regulation that is applicable to Senior Lender. 

         (x)  The
Senior Loan is not cross-defaulted with any other loan. The Premises do not secure any other loan from Senior Lender to Senior Borrower, Junior Borrowers or any
other Affiliate of Senior Borrower. 

        (b)    Junior Lenders.    Each Junior Lender hereby represents and warrants, for itself only, to Senior Lender and the
other Junior Lenders as follows: 

          (i)  There
are no conditions precedent to the effectiveness of this Agreement that with respect to such Junior Lender have not been satisfied or waived. 

         (ii)  Such
Junior Lender has, independently and without reliance upon Senior Lender or any other Junior Lender and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to make its respective Junior Loan and to enter into this Agreement. 

        (iii)  Such
Junior Lender is duly organized and is validly existing under the laws of the jurisdiction under which it was organized with full power to execute, deliver, and
perform this Agreement and consummate the transactions contemplated hereby. 

        (iv)  All
actions necessary to authorize the execution, delivery, and performance of this Agreement on behalf of such Junior Lender have been duly taken, and all such actions
continue in full force and effect as of the date hereof. 

         (v)  Such
Junior Lender has duly executed and delivered this Agreement and this Agreement constitutes the legal, valid, and binding agreement of such Junior Lender
enforceable against such Junior Lender in accordance with its terms subject to (x) applicable bankruptcy, reorganization, insolvency and moratorium laws and (y) general principles of
equity which may apply regardless of whether a proceeding is brought in law or in equity. 

        (vi)  To
the knowledge of such Junior Lender, no consent of any other Person and no consent, license, approval, or authorization of, or exemption by, or registration or
declaration or filing with, any governmental authority, bureau or agency is required in connection with the execution, delivery or performance by such Junior Lender of this Agreement or consummation
by such Junior Lender of the transactions contemplated by this Agreement. 

29

 

 

       (vii)  None
of the execution, delivery and performance of this Agreement nor the consummation of the transactions contemplated by this Agreement will (v) violate or
conflict with any provision of the organizational or governing documents of such Junior Lender, (w) to such Junior Lender's knowledge, violate, conflict with, or result in the breach or
termination of, or otherwise give any other Person the right to terminate, or constitute (or with the giving of notice or lapse of time, or both, would constitute) a default under the terms of any
material contract, mortgage, lease, bond, indenture, agreement, or other instrument to which such Junior Lender is a party or to which any of its properties are subject, (x) to such Junior
Lender's knowledge, result in the creation of any lien, charge, encumbrance, mortgage, lease, claim, security interest, or other right or interest upon the properties or assets of such Junior Lender
pursuant to the terms of any such material contract, mortgage, lease, bond, indenture, agreement, franchise, or other instrument (provided,  however, that
such Junior Lender shall have the right to grant a lien, charge, encumbrance, claim or security interest in the Junior Loan held by such
Junior Lender or any portion thereof to a Loan Pledgee as contemplated by the provisions of Section 16), (y) violate any judgment, order,
injunction, decree, or award of any court, arbitrator, administrative agency or governmental or regulatory body of which such Junior Lender has knowledge against, or binding upon, such Junior Lender
or upon any of the securities, properties, assets, or business of such Junior Lender or (z) to such Junior Lender's knowledge, constitute a violation by such Junior Lender of any statute, law
or regulation that is applicable to such Junior Lender. 

      (viii)  Such
Junior Lender is a "Qualified Transferee" pursuant to clause (v) of the definition thereof. 

        (c)    First Mezzanine Lender.    First Mezzanine Lender (but not any transferee, successor or assign of First
Mezzanine Lender) hereby represents and warrants as follows: 

          (i)  Exhibit B attached hereto and made a part hereof is a true and correct listing of all material First Mezzanine
Loan Documents (including all amendments, modifications, replacements, restatements and supplements thereof) as of the date hereof. To First Mezzanine Lender's knowledge, there currently exists no
default or event which, with the giving of notice or the lapse of time, or both, would constitute a default under the First Mezzanine Loan Documents. 

         (ii)  First
Mezzanine Lender and the other First Mezzanine Noteholders are the legal and beneficial owners of the entire First Mezzanine Loan free and clear of any lien,
security interest, option or other charge or encumbrance, other than any lien or security interest granted to any Loan Pledgee (as hereinafter defined) as contemplated by the provisions of  Section 16. 

        (iii)  The
First Mezzanine Loan is not cross-defaulted with any loan other than the Senior Loan. The Premises do not secure any loan from First Mezzanine Lender to First
Mezzanine Borrower or any other Affiliate of Senior Borrower. 

        (d)    Second Mezzanine Lender.    Second Mezzanine Lender (but not any transferee, successor or assign of Second
Mezzanine Lender) hereby represents and warrants as follows: 

          (i)  Exhibit C attached hereto and made a part hereof is a true and correct listing of all material Second Mezzanine
Loan Documents (including all amendments, modifications, replacements, restatements and supplements thereof) as of the date hereof. To Second Mezzanine Lender's knowledge, there currently exists no
default or event which, with the giving of notice or the lapse of time, or both, would constitute a default under the Second Mezzanine Loan Documents. 

         (ii)  Second
Mezzanine Lender and the other Second Mezzanine Noteholders are the legal and beneficial owners of the entire Second Mezzanine Loan free and clear of any lien,
security interest, option or other charge or encumbrance, other than any lien or security interest granted to any Loan Pledgee (as hereinafter defined) as contemplated by the provisions of  Section 16. 

30

 

        (iii)  The
Second Mezzanine Loan is not cross-defaulted with any loan other than the Senior Loan and the First Mezzanine Loan. The Premises do not secure any loan from Second
Mezzanine Lender to Second Mezzanine Borrower or any other Affiliate of Borrower. 

        (e)    Third Mezzanine Lender.    Third Mezzanine Lender (but not any transferee, successor or assign of Third
Mezzanine Lender) hereby represents and warrants as follows: 

          (i)  Exhibit D attached hereto and made a part hereof is a true and correct listing of all material Third Mezzanine
Loan Documents (including all amendments, modifications, replacements, restatements and supplements thereof) as of the date hereof. To Third Mezzanine Lender's knowledge, there currently exists no
default or event which, with the giving of notice or the lapse of time, or both, would constitute a default under the Third Mezzanine Loan Documents. 

         (ii)  Third
Mezzanine Lender and the other Third Mezzanine Noteholders are the legal and beneficial owners of the entire Third Mezzanine Loan free and clear of any lien,
security interest, option or other
charge or encumbrance, other than any lien or security interest granted to any Loan Pledgee (as hereinafter defined) as contemplated by the provisions of  Section 16. 

        (iii)  The
Third Mezzanine Loan is not cross-defaulted with any loan other than the Senior Loan, the First Mezzanine Loan and the Second Mezzanine Loan. The Premises do not
secure any loan from Third Mezzanine Lender to Third Mezzanine Borrower or any other Affiliate of Senior Borrower. 

        (f)    Fourth Mezzanine Lender.    Fourth Mezzanine Lender (but not any transferee, successor or assign of Fourth
Mezzanine Lender) hereby represents and warrants as follows: 

          (i)  Exhibit E attached hereto and made a part hereof is a true and correct listing of all material Fourth Mezzanine
Loan Documents (including all amendments, modifications, replacements, restatements and supplements thereof) as of the date hereof. To Fourth Mezzanine Lender's knowledge, there currently exists no
default or event which, with the giving of notice or the lapse of time, or both, would constitute a default under the Fourth Mezzanine Loan Documents. 

         (ii)  Fourth
Mezzanine Lender and the other Fourth Mezzanine Noteholders are the legal and beneficial owners of the entire Fourth Mezzanine Loan free and clear of any lien,
security interest, option or other charge or encumbrance, other than any lien or security interest granted to any Loan Pledgee (as hereinafter defined) as contemplated by the provisions of  Section 16. 

        (iii)  The
Fourth Mezzanine Loan is not cross-defaulted with any loan other than the Senior Loan, the First Mezzanine Loan, the Second Mezzanine Loan and the Third Mezzanine
Loan. The Premises do not secure any loan from Fourth Mezzanine Lender to Fourth Mezzanine Borrower or any other Affiliate of Borrower. 

        (g)    Fifth Mezzanine Lender.    Fifth Mezzanine Lender (but not any transferee, successor or assign of Fifth
Mezzanine Lender) hereby represents and warrants as follows: 

          (i)  Exhibit F attached hereto and made a part hereof is a true and correct listing of all material Fifth Mezzanine
Loan Documents (including all amendments, modifications, replacements, restatements and supplements thereof) as of the date hereof. To Fifth Mezzanine Lender's knowledge, there currently exists no
default or event which, with the giving of notice or the lapse of time, or both, would constitute a default under the Fifth Mezzanine Loan Documents. 

         (ii)  Fifth
Mezzanine Lender and the other Fifth Mezzanine Noteholders are the legal and beneficial owners of the entire Fifth Mezzanine Loan free and clear of any lien,
security interest, 

31

 

option
or other charge or encumbrance, other than any lien or security interest granted to any Loan Pledgee (as hereinafter defined) as contemplated by the provisions of  Section 16. 

        (iii)  The
Fifth Mezzanine Loan is not cross-defaulted with any loan other than the Senior Loan, the First Mezzanine Loan, the Second Mezzanine Loan, the Third Mezzanine Loan
and the Fourth Mezzanine Loan. The Premises do not secure any loan from Fifth Mezzanine Lender to Fifth Mezzanine Borrower or any other Affiliate of Borrower. 

        (h)    Sixth Mezzanine Lender.    Sixth Mezzanine Lender (but not any transferee, successor or assign of Sixth
Mezzanine Lender) hereby represents and warrants as follows: 

          (i)  Exhibit G attached hereto and made a part hereof is a true and correct listing of all material Sixth Mezzanine
Loan Documents (including all amendments, modifications, replacements, restatements and supplements thereof) as of the date hereof. To Sixth Mezzanine Lender's knowledge, there currently exists no
default or event which, with the giving of notice or the lapse of time, or both, would constitute a default under the Sixth Mezzanine Loan Documents. 

         (ii)  Sixth
Mezzanine Lender and the other Sixth Mezzanine Noteholders are the legal and beneficial owners of the entire Sixth Mezzanine Loan free and clear of any lien,
security interest, option or other charge or encumbrance, other than any lien or security interest granted to any Loan Pledgee (as hereinafter defined) as contemplated by the provisions of  Section 16. 

        (iii)  The
Sixth Mezzanine Loan is not cross-defaulted with any loan other than the Senior Loan, the First Mezzanine Loan, the Second Mezzanine Loan, the Third Mezzanine
Loan, the Fourth Mezzanine Loan and the Fifth Mezzanine Loan. The Premises do not secure any loan from Sixth Mezzanine Lender to Sixth Mezzanine Borrower or any other Affiliate of Borrower. 

        (i)    Seventh Mezzanine Lender.    Seventh Mezzanine Lender (but not any transferee, successor or assign of Seventh
Mezzanine Lender) hereby represents and warrants as follows: 

          (i)  Exhibit H attached hereto and made a part hereof is a true and correct listing of all material Seventh Mezzanine
Loan Documents (including all amendments, modifications, replacements, restatements and supplements thereof) as of the date hereof. To Seventh Mezzanine Lender's knowledge, there currently
exists no default or event which, with the giving of notice or the lapse of time, or both, would constitute a default under the Seventh Mezzanine Loan Documents. 

         (ii)  Seventh
Mezzanine Lender and the other Seventh Mezzanine Noteholders are the legal and beneficial owners of the entire Seventh Mezzanine Loan free and clear of any
lien, security interest, option or other charge or encumbrance, other than any lien or security interest granted to any Loan Pledgee (as hereinafter defined) as contemplated by the provisions of  Section 16. 

        (iii)  The
Seventh Mezzanine Loan is not cross-defaulted with any loan other than the Senior Loan, the First Mezzanine Loan, the Second Mezzanine Loan, the Third Mezzanine
Loan, the Fourth Mezzanine Loan, the Fifth Mezzanine Loan and the Sixth Mezzanine Loan. The Premises do not secure any loan from Seventh Mezzanine Lender to Seventh Mezzanine Borrower or any other
Affiliate of Senior Borrower. 

        Section 5.    Transfer of Junior Loan or Senior Loan.    

        (a)    Junior Lender.    Notwithstanding the provisions of  Section 9 or any other provisions hereof (including the provisions
of Section 12(a)(iii)
hereof), no Junior Lender or any Loan Pledgee with respect to a Junior Loan shall Transfer in the aggregate, taking into account all prior Transfers, more than forty nine percent (49%) of its
respective beneficial interest in its respective Junior Loan to any Person that is not a Qualified Transferee or a Loan Pledgee, without receiving a Rating Agency Confirmation (in which case the
related transferee shall thereafter be deemed to be a "Qualified  

32

 

 Transferee" for all purposes of this Agreement), and in connection with any Transfer to a Qualified Transferee, any such Junior Lender shall, if requested by the Rating
Agencies, provide to Senior Lender, the other Junior Lenders and the Rating Agencies within five (5) Business Days of such Transfer a certification that such Transfer has been made to a
Qualified Transferee or a Loan Pledgee. Any such transferee (other than a Loan Pledgee or a participant in connection with a participation of a portion of the applicable Junior Loan), must assume in
writing the obligations of such Junior Lender hereunder arising from and after the date of such Transfer (and such Junior Lender shall remain liable for its obligations hereunder arising prior to the
date of such Transfer) and agree to be bound by the terms and provisions hereof. Such proposed transferee (other than a Loan Pledgee (prior to its realization on the Pledged Junior Loan) or a
participant in connection with a participation of a portion of the applicable Junior Loan) shall also remake each of the representations and warranties contained herein which are applicable to the
Junior Loan being acquired for the benefit of the Senior Lender and the Junior Lenders. 

        (b)    Senior Junior Lender.    Each Senior Junior Lender may, from time to time, in its sole discretion Transfer all
or any part of the applicable Senior Junior Loan or any interest therein as permitted herein without the consent of any applicable Subordinate Junior Lender but subject to the other provisions of this  Section 5,
 and, notwithstanding any such Transfer or subsequent Transfer by a
transferee of such Senior Junior Lender, such Senior Junior Loan and such Senior Junior Loan Documents shall be and remain a senior obligation with respect to the applicable Subordinate Junior Loans
in the respects set forth in this Agreement and in accordance with the terms and provisions of this Agreement; provided,  however, in no event shall any
such Transfer be to Senior Borrower or to any Affiliate of Senior Borrower (including, without limitation, any Junior
Borrower that is an Affiliate of Senior Borrower), provided, however, that the aforesaid prohibition
shall not apply to any Junior Lender or an Affiliate thereof that has acquired title to Equity Collateral. 

        (c)    Directing Senior Lender.    If more than one Person shall hold a direct interest in the Senior Loan, the
holder(s) of more than fifty percent (50%) of the principal amount of the Senior Loan (unless the applicable participation agreement or co-lender agreement among the holders of the Senior
Loan provides a different designation mechanism, which different mechanism shall be specified in such notice and upon which each Junior Lender shall be entitled to rely) shall designate by written
notice to the Junior Lenders either (i) one of such Persons or (ii) a servicer on behalf of such Persons (the "Directing Senior Lender")
to act on behalf of all such Persons holding an interest in the Senior Loan. Except as otherwise agreed in writing by the Senior Lender and Junior Lenders, the Directing Senior Lender shall have the
sole right to receive any notices which are required to be given or which may be given to the Senior Lender and to exercise the rights and power given to the Senior Lender, including any approval
rights of the Senior Lender; provided, that until a Directing Senior Lender has been so designated, the last Person known to the Junior Lenders to be
the Directing Senior Lender or to hold more than a fifty percent (50%) direct interest in the Senior Loan shall be deemed to be the Directing Senior Lender. Once a Directing Senior Lender has been
designated hereunder, each Junior Lender shall be entitled to rely on such designation until it has received written notice from the Directing Senior Lender or the holder(s) of more than fifty percent
(50%) of the principal amount of the Senior Loan of the designation of a different Person to act as the Directing Senior Lender (unless the applicable participation agreement or co-lender
agreement among the holders of the Senior Loan provides a different designation mechanism, which different mechanism shall be specified in such notice and upon which each Junior Lender shall be
entitled to rely). Notwithstanding any provision of this Section 5(c) to the contrary, each Person holding an interest in the Senior Loan shall
be deemed to be a Senior Lender for purposes of the rights and restrictions contained in Sections 5(a),  (b) and (c)
, and shall be subject to the rights and restrictions thereof with respect to such Person's
interest in the Senior Loan. 

33

 

        (d)    Directing Junior Lender.    If more than one Person shall hold a direct interest in a Junior Loan, the
holder(s) of more than fifty percent (50%) of the principal amount of such Junior Loan (unless the applicable participation agreement or co-lender agreement among the holders of such
Junior Loan provides a different designation mechanism, which different mechanism shall be specified in such notice and upon which Senior Lender and each Junior Lender shall be entitled to rely) shall
designate by written notice to Senior Lender and the other Junior Lenders one of such Persons (a "Directing Junior Lender") to act on behalf of all such
Persons holding an interest in such Junior Loan. Except as otherwise agreed in writing by the Senior Lender and Junior Lenders, the Directing Junior Lender shall have the sole right to receive any
notices which are required to be given or which may be given to the Junior Lender holding the applicable Junior Loan pursuant to this Agreement and to exercise the rights and power given to the Junior
Lender holding the applicable Junior Loan
hereunder, including any approval rights of the Junior Lender holding the applicable Junior Loan; provided, that until a Directing Junior Lender has
been so designated, the last Person known to the Senior Lender and the other Junior Lenders to hold more than a fifty percent (50%) direct interest in the applicable Junior Loan shall be deemed to be
the Directing Junior Lender for such Junior Loan. Once a Directing Junior Lender has been designated hereunder with respect to a Junior Loan, Senior Lender and each other Junior Lender shall be
entitled to rely on such designation until it has received written notice from the holder(s) of more than fifty percent (50%) of the principal amount of the applicable Junior Loan of the designation
of a different Person to act as the Directing Junior Lender for such Junior Loan (unless the applicable participation agreement or co-lender agreement among the holders of such Junior Loan
provides a different designation mechanism, which different mechanism shall be specified in such notice and upon which Senior Lender and each Junior Lender shall be entitled to rely). Notwithstanding
any provision of this Section 5(d) to the contrary, each Person holding an interest in a Junior Loan shall be deemed to be a Junior Lender with
respect to the applicable Junior Loan for purposes of the rights and restrictions contained in Section 5(a),  (b) and (d)
, and shall be subject to the rights and restrictions thereof with respect to such Person's
interest in the applicable Junior Loan. 

        (e)    Senior Lender.    Senior Lender may, from time to time, in its sole discretion, Transfer all or any of the
Senior Loan or any interest therein in accordance with the terms of this Agreement, provided that any such transferee (other than in connection with a Securitization, provided the Transfer is made
subject to this Agreement) assumes in writing the obligations of Senior Lender hereunder accruing from and after such Transfer and (except in connection with a Securitization) agrees to be bound by
the terms and provisions hereof, and notwithstanding any such Transfer or subsequent Transfer, the Senior Loan and the Senior Loan Documents shall be and remain a senior obligation in the respects set
forth in this Agreement to the Junior Loan and the Junior Loan Documents in accordance with the terms and provisions of this Agreement. Senior Lender agrees that, Senior Lender will not Transfer the
Senior Loan to Borrower or any Affiliate of Borrower without the consent of all of the Junior Lenders, which may be withheld in the Junior Lenders' sole discretion. 

        Section 6.    Foreclosure of Separate Collateral.    (a) Notwithstanding the provisions of  Section 8 or any other provisions
hereof (including the provisions of Section 12(a)(iii)
hereof), no Junior Lender nor any Loan Pledgee with respect to a Junior Loan shall complete a foreclosure or otherwise realize upon any of its Equity Collateral (or accept title to such Equity
Collateral in lieu of foreclosure, including, without limitation, sell or otherwise transfer the Equity Collateral) unless (i) the transferee of the title to such Equity Collateral is a
Qualified Transferee, (ii) each of the Individual Properties will be managed and operated by a Qualified Operator within thirty (30) days after the transfer of title, (iii) if a
non-consolidation opinion was delivered in connection with the origination of the Senior Loan, there is delivered at the transfer of title a non-consolidation opinion which has
been reviewed and approved by counsel to such Junior Lender as being in a form which would be in such counsel's view acceptable to the Rating Agencies, and within ten (10) Business Days after
the transfer, a non-consolidation opinion acceptable to the Rating Agencies and the applicable Senior Junior Lenders, (iv) the existing 

34

 

cash
management system is maintained, to the extent required under the Senior Loan Documents and the applicable Senior Junior Loan Documents, (v) immediately following such foreclosure reserves
for taxes, debt service, capital repair and improvement expenses, tenant improvement expenses, leasing commissions and operating expenses, insurance and ground rents, if any, are, to the extent
required under the Senior Loan Documents and the applicable Senior Junior Loan Documents, maintained, (vi) after giving effect to such Transfer, on and after the date of such Transfer, Senior
Borrower and the applicable Junior Borrower (to the extent required by the Senior Loan Documents and the applicable Senior Junior Loan Documents) are Special Purpose Entities, and (vii) notice
of the Transfer and an officer's certificate from an officer of the applicable Junior Lender certifying that all conditions set forth in clauses (i) through (vi) above have been
satisfied must be provided to Senior Lender, the applicable Senior Junior Lenders and the Rating Agencies upon the satisfaction of the requirements set forth above (which shall be within thirty
(30) days subsequent to the Transfer). In the event that such Transfer results in the explicit release from future liability of any guarantor, indemnitor, pledgor, or other obligor (each, a
"Third Party Obligor"), under the Senior Loan and/or any Senior Junior Loan, or any other guaranty, pledge or indemnity which may constitute a Senior
Loan Document and/or a Senior Junior Loan Document (each, a "Third Party Agreement"), such transferee or an Affiliate thereof reasonably satisfactory to
Senior Lender and the applicable Senior Junior Lender shall: (A) execute and deliver to each of Senior Lender and/or the applicable Senior Junior Lender a substitute Third Party Agreement from
a substitute Third Party Obligor reasonably acceptable to Senior Lender and each applicable Senior Junior Lender, in each case in a form substantially similar to the original Third Party Agreement
that it is replacing or otherwise in form reasonably acceptable to Senior Lender and each applicable Senior Junior Lender, pursuant to which the substitute Third Party Obligor shall undertake the
obligations set forth therein from and after the date of such Transfer (and only to the extent arising from and after the date of such Transfer), and (B) if there are Certificates then
outstanding, deliver (or cause to be delivered) to Senior Lender and each Rating Agency, an opinion of counsel that the substitution of the original Third Party Obligor and the original Third Party
Agreement with a substitute Third Party Obligor and a substitute Third Party Agreement, would not cause a "significant modification" of the Senior Loan, as such term is defined in Treasury Regulations
Section 1.860G 2(b); provided, however, that any substitute Third Party Obligor which is a
Qualified Transferee pursuant to clause (iv) of the definition of "Qualified Transferee" shall be deemed satisfactory to Senior Lender and the applicable Senior Junior Lenders. 

        (b)   Nothing
contained herein shall limit or restrict the right of any Junior Lender to exercise its rights and remedies, in law or in equity, or otherwise, in order to
realize on any of its Separate Collateral that is not Equity Collateral and to apply the proceeds therefrom as it deems appropriate in its discretion
(i.e., without payment subordination) (including exercising any remedy against any guarantor (a
"Guarantor") pursuant to any guaranty granted to any Junior Lender as additional collateral to secure the obligations under the applicable Junior Loan
Documents) (a "Guaranty Claim"); provided, however, each
Junior Lender agrees that it shall not pursue the enforcement of any judgments against Guarantor (but shall not be precluded from obtaining a judgment) pursuant to this clause
(b) if (i) Junior Lender has received notice that Senior Lender is simultaneously exercising any rights and remedies that it may have against such Guarantor under any
guaranty granted to Senior Lender as additional collateral to secure the obligations under the Senior Loan Documents or (ii) Junior Lender has received notice that a Senior Junior Lender is
simultaneously exercising any rights and remedies that it may have against such Guarantor under any guaranty granted to such Senior Junior Lender as additional collateral to secure the obligations
under the Senior Junior Loan Documents and any right of payment of any Junior Lender under a Guaranty Claim shall be subject and subordinate in all respects to the rights and claims of Senior Lender
and any applicable Senior Junior Lenders against such Guarantor. 

        (c)   In
the event a Junior Lender that is a Qualified Transferee or any Qualified Transferee purchaser at a UCC sale obtains title to the Equity Collateral, each of Senior
Lender and any Senior 

35

 

Junior
Lender acknowledges and agrees that any transfer or assumption fee in the Senior Loan Agreement or any Senior Junior Loan Agreement shall be waived as a condition to such Transfer however, all
reasonable expenses incurred by Senior Lender and by any Senior Junior Lender in connection with any such Transfer shall be paid by such Junior Lender and any such Transfer shall not constitute a
breach or default under the Senior Loan Documents or any Senior Junior Loan Documents, provided that such action is enforced in accordance with the terms and conditions of this Agreement, including  Section 6(a)
. Senior Lender and any applicable Senior Junior Lender shall not impose any unreasonable delay in connection with any such Transfer. 

        (d)   To
the extent that any Qualified Transferee acquires the Equity Collateral pledged to a Junior Lender pursuant to the Junior Loan Documents in accordance with the
provisions and conditions of this Agreement (including, but not limited to Section 12 hereof), such Qualified Transferee shall acquire the same
subject to (i) the Senior Loan and the terms, conditions and provisions of the Senior Loan Documents and (ii) the applicable Senior Junior Loans and the terms, conditions and provisions
of the applicable Senior Junior Loan Documents, in each case for the balance of the term thereof, which shall not be accelerated by Senior Lender or the related Senior Junior Lender solely due to such
acquisition and shall remain in full force and effect; provided, however, that (A) such Qualified
Transferee shall cause, within ten (10) days after the transfer, (1) Senior Borrower and (2) the applicable Senior Junior Borrowers, in each case to reaffirm in writing, subject
to such exculpatory provisions as shall be set forth in the Senior Loan Documents and the related Senior Junior Loan Documents, as applicable, all of the terms, conditions and provisions of the Senior
Loan Documents and the related Senior Junior Loan Documents, as applicable, on Senior Borrower's or the applicable Senior Junior Borrower's, as applicable, part to be performed and (B) all
defaults under (1) the Senior Loan and (2) the applicable Senior Junior Loans, in each case which remain uncured or unwaived as of the date of such acquisition have been cured by such
Qualified Transferee except for defaults that are not susceptible of being cured by such Qualified Transferee; provided, that such defaults which are
not susceptible of being cured do not materially impair the value, use or operation of the Premises taken as a whole, all as determined in the reasonable judgment of Senior Lender and the applicable
Senior Junior Lenders, or in the case of defaults that can only be cured by the Junior Lender following its acquisition of the Equity Collateral, the same shall be cured by the Junior Lender prior to
the expiration of the applicable Extended Non-Monetary Cure Period. 

        (e)   Nothing
contained in Section 5(a) or this Section 6 is
intended (i) to limit any Loan Pledgee's right under its financing documents with any Junior Lender to foreclose against such Junior Lender,  provided that such Loan Pledgee complies with the
applicable provisions of Section 16, or
(ii) if any such Loan Pledgee has foreclosed under its financing documents as aforesaid, to limit such Loan Pledgee's right to foreclose against the applicable Junior Borrower's interest in the
Separate Collateral, provided that Loan Pledgee complies with the applicable provisions of Section 5 and this  Section 6. 

        Section 7.    Notice of Rating Confirmation.    Each Junior Lender shall promptly notify Senior Lender and each
other Junior Lender of any intended action relating to its respective Junior Loan which would require Rating Agency Confirmation hereunder and shall cooperate with Senior Lender in obtaining such
confirmation. Senior Lender promptly shall notify Junior Lenders of any intended action relating to the Senior Loan which would so require Rating Agency Confirmation and shall cooperate with Junior
Lenders in obtaining such confirmation. The party whose actions necessitate or require Rating Agency Confirmation shall pay all fees and expenses of the Rating Agencies in connection with such
request. 

        Section 8.    Modifications, Amendments, etc.    (a) Senior Lender shall have the right without the
consent of any Junior Lender in each instance to enter into any amendment, deferral, extension, modification, increase, renewal, replacement, consolidation, supplement or waiver (collectively, a
"Senior Loan Modification") of the Senior Loan or any of the Senior Loan Documents provided that no such Senior Loan Modification shall
(i) increase the interest rate or principal amount of the Senior 

36

 

Loan
except for increases in principal to cover workout costs and enforcement costs (including closing costs in connection therewith) and Protective Advances, (ii) increase in any other
material respect any monetary obligations of Senior Borrower under the Senior Loan Documents, (iii) extend or shorten the scheduled maturity date of the Senior Loan (other than by acceleration
of the Senior Loan after the lapse of any cure periods granted to any Junior Lender pursuant to the terms of this Agreement or an extension option scheduled pursuant to the terms of the Senior Loan
Documents on the date hereof), (iv) increase the amount of any principal payments required under the Senior Loan or modify any related principal amortization schedule in a manner which would
increase the amount of principal payments except if increased in connection with (i) above, (v) convert or exchange the Senior Loan into or for any other indebtedness or subordinate any
of the Senior Loan to any other indebtedness of Senior Borrower, (vi) accept a grant of any lien on or security interest in any collateral or property of Senior Borrower or any other Person not
originally granted or contemplated to be granted under the Senior Loan Documents, (vii) modify, waive or amend the terms and provisions of the Senior Loan Cash Management Agreement or the
Senior Loan Agreement with respect to (1) the definitions of "Acceptable Counterparty", "Debt Service", "Limited Cure Release Amount", "Release Amount" or "Spread Maintenance Premium" (as such
terms are defined in the Senior Loan Agreement and/or the Cash Management Agreement), and any of the terms used within such definitions or the covenants relating thereto, (2) any reserves or
escrows, including, without limitation, those for taxes, insurance, debt service, repairs, replacements and ground rent, if any, or any provisions regarding the release of funds from escrow (or waive
compliance therewith) or reduce or, except as may be reasonably required, increase monthly escrow deposit amounts, (3) any future funding obligation or additional advances of loan proceeds, if
any, or (4) the amount of, manner, timing, method of the application of, or order of priority in payment, of payments under the Senior Loan Documents or the Junior Loan Documents,
(viii) cross-default the Senior Loan with or subordinate the Senior Loan to any other indebtedness, (ix) obtain any equity interest in Senior Borrower or any Junior Borrower, or any
contingent interest, additional interest or so called "kicker" measured on the basis of the cash flow or appreciation of the Premises, (x) consent to a higher strike price with respect to the
current or any new or extended interest rate cap agreement entered into in connection with the Senior Loan or any extended term of the Senior Loan or waive the requirement for an interest rate cap
agreement if now or in the future called for under the Senior Loan Documents or waive or release any obligation of the counterparty under any interest rate cap agreement, (xi) waive, amend or
modify the transfer or encumbrance provisions in the Senior Loan Documents, including, without limitation, modifying the Release Amount or Limited Cure Release Amount, (xii) spread the lien of
any Mortgage to encumber additional real property (other than pursuant to the Substitution provisions of the Senior Loan Agreement), (xiii) extend the period during which voluntary prepayments
are prohibited or during which prepayments require the payment of a prepayment fee or premium or yield or spread maintenance charge or impose any prepayment fee or premium or yield or spread
maintenance charge in connection with a prepayment of the Senior Loan when none is now required or after the current maturity date of the Senior Loan or increase the amount of such prepayment fee,
premium or yield or spread maintenance charge, (xiv) modify, waive or amend, in any material respect, the terms and provisions of Section 6.1 of the Senior Loan Agreement (including any
deductibles, limits, qualifications of insurers or terrorism insurance requirements), (xv) release its lien on any material portion of the collateral originally granted under the Senior Loan
Documents (except as may be required in accordance with the terms of the Senior Loan Documents), (xvi) amend or modify the definition of Event of Default under the Senior Loan Documents,
(xvii) impose any additional fees upon Senior Borrower that would be required to be paid on a periodic
or regular basis, (xviii) add provisions which would prohibit or restrict any Junior Lender (or any transferee of the interest in any Junior Loan) from acquiring the interest of the applicable
Junior Borrower by foreclosure of the applicable Equity Collateral, (xix) impose any financial covenants on Senior Borrower (or if such covenants exist, impose more restrictive financial
covenants on Senior Borrower); provided, however, in no event shall Senior Lender be obligated to obtain
any Junior Lender's consent to a Senior Loan Modification prohibited above in 

37

 

the
case of a workout or other surrender, extension, compromise, release, renewal, or indulgence relating to the Senior Loan following the occurrence and continuance of an Event of Default under the
Senior Loan Documents, except, that (A) under no condition shall the principal balance of Senior Loan be increased in violation of item (i) above (with respect to increase in principal
amount only) or the modifications described in clauses (ix), (xiii) or (xvii) (except for any workout fee payable to the Servicer of the Senior Loan following a Securitization)
above be made, without in each case the prior written consent of each of the Junior Lenders and (B) during any Monetary Cure Period, Extended Monetary Cure Period, Non-Monetary Cure
Period or Extended Non-Monetary Cure Period, provided that each Junior Lender is in compliance with the provisions of Section 6
above, Senior Lender will not violate the provisions contained in clauses (i) through (xix) above without the prior written consent of each Junior Lender. In addition and notwithstanding
the foregoing provisions of this Section 8(a), any amounts funded by Senior Lender pursuant to the Senior Loan Documents as a result of
(1) the making of any Protective Advances or other advances by Senior Lender expressly permitted by the terms of the Senior Loan Documents, or (2) interest accruals or accretions
provided for in the Senior Loan Documents as of the date hereof and any compounding thereof (including default interest), shall not be deemed to contravene this  Section 8(a); for the purposes of
this sentence the term "Protective Advances" shall include all
advances where the sums advanced are advanced for the benefit of the Premises whether or not expressly provided for in the Senior Loan Documents. 

        (b)   Each
Subordinate Junior Lender shall have the right without the consent of Senior Lender or any Senior Junior Lender, in each instance to enter into any amendment,
deferral, extension, modification, increase, renewal, replacement, consolidation, supplement or waiver (collectively, a "Junior Loan Modification") of
its Junior Loan or Junior Loan Documents, provided, that without first receiving the consent of Senior Lender and any applicable Senior Junior Lender,
no such Junior Loan Modification shall: (i) increase the interest rate or principal amount of the applicable Junior Loan except for increases in principal to cover workout costs and enforcement
costs (including closing costs in connection therewith) and Protective Advances, (ii) increase in any other material respect any monetary obligations of the applicable Junior Borrower under the
applicable Junior Loan Documents, (iii) extend or shorten the scheduled maturity date of the applicable Junior Loan (other than by an acceleration of such Junior Loan after the lapse of any
cure periods granted to any Subordinate Junior Lender pursuant to the terms of this Agreement), (iv) increase the amount of any principal payments required under the applicable Junior Loan or
modify any related principal amortization schedule in a manner which would increase the amount of principal payments except if increased in connection with (i) above, (v) convert or
exchange the applicable Junior Loan into or for any other indebtedness, or subordinate any of such Junior Loan, to any indebtedness of the applicable Junior Borrower, (vi) accept a grant of any
lien on or security interest in any collateral or property of the applicable Junior Borrower or any other Person not originally granted or contemplated to be granted under the applicable Junior Loan
Documents, unless (x) such collateral or property is owned by a Person other than such Junior Borrower and is not collateral for the Senior Loan or any Senior Junior Loan and (y) the
consent of Senior Lender and the applicable Senior Junior Lender, is obtained if such consent is required pursuant to the Senior Loan Documents or the applicable Senior Junior Loan Documents,
(vii) obtain any equity interest in Senior Borrower or any Junior Borrower other than the applicable Junior Borrower, or any contingent interest, additional interest or so called "kicker",
(viii) spread the lien and security interest of the Pledge Agreement to encumber additional collateral, (ix) cross-default the applicable Junior Loan with any other indebtedness other
than the Senior Loan and any Senior Junior Loan, (x) waive, amend or modify the transfer or encumbrance provisions in the applicable Junior Loan Documents, including, without limitation,
modifying the Release Amount or Limited Cure Release Amount, (xi) consent to a higher strike price with respect to the current or any new or extended interest rate cap agreement entered into in
connection with the applicable Junior Loan or any extended term of the applicable Junior Loan. In addition and notwithstanding the foregoing provisions of this  Section 8(b), (a) any amounts
funded by a Junior Lender under its respective Junior Loan 

38

 

Documents
as a result of (1) the making of any Protective Advances or other advances by such Junior Lender expressly permitted by the terms of its Junior Loan Documents as of the date hereof or
(2) interest accruals or accretions and any compounding thereof (including default interest) shall not be deemed to contravene this  Section 8(b). Notwithstanding the foregoing, in addressing
an Event of Default that has occurred under any Junior Loan Documents, or if a Junior
Lender in good faith believes that a Default (as defined in the applicable Junior Loan Agreement) has occurred and Senior Lender and the applicable Senior Junior Lenders, in their reasonable
discretion, concur that such Default under the applicable Junior Loan has occurred, the applicable Junior Lender shall be permitted to amend or modify the applicable Junior Loan in connection with a
workout or other surrender, compromise, release, renewal or modification of such Junior Loan, provided that under no conditions shall the modifications
described in clause (i) above (with respect to increases in principal amounts only), clause (ii), clause (iii) (with respect to shortening the maturity only), clause (iv),
clause (v), or clause (vii) above be made without the prior written consent of Senior Lender and the applicable Senior Junior Lenders, and  provided, further, that any such amendment or modification shall not (x) increase the per annum
rate at which interest is payable under the applicable Junior Loan, unless such additional interest accrues and is contingent and if no Event of Default under the Senior Loan and any applicable Senior
Junior Loans exists, then such additional interest may be paid from excess net cash flow that would otherwise be payable to Senior Borrower or any Junior Borrower or
(y) require any specified sums as amortization payments other than as now provided under the applicable Junior Loan Documents (however, such Junior Lender will be permitted to retain excess net
cash flow that would otherwise be payable to Senior Borrower or any applicable Junior Borrower and to apply such cash flow to the amortization of the principal balance of the applicable Junior Loan or
to deferred interest under the applicable Junior Loan, subject to any prior right to such funds under the Senior Loan Cash Management Agreement and any applicable Senior Junior Loan Cash Management
Agreement). 

        (c)   Each
Senior Junior Lender shall have the right without the consent of any applicable Subordinate Junior Lender, in each instance to enter into any amendment, deferral,
extension, modification, increase, renewal, replacement, consolidation, supplement or waiver (collectively, a "Senior Junior Loan Modification") of its
Senior Junior Loan or Senior Junior Loan Documents, provided, that without first receiving the consent of any applicable Subordinate Junior Lender, no
such Senior Junior Loan Modification shall: (i) increase the interest rate or principal amount of the applicable Senior Junior Loan except for increases in principal to cover workout costs and
enforcement costs (including closing costs in connection therewith) and Protective Advances, (ii) increase in any other material respect any monetary obligations of the applicable Senior Junior
Borrower under the applicable Senior Junior Loan Documents, (iii) extend or shorten the scheduled maturity date of the applicable Senior Junior Loan (other than by acceleration of such Senior
Junior Loan after the lapse of any cure periods granted to any Subordinate Junior Lender pursuant to the terms of this Agreement or an extension option scheduled pursuant to the terms of the Senior
Junior Loan Documents on the date hereof)), (iv) increase the amount of any principal payments required under the applicable Senior Junior Loan or modify any related principal amortization
schedule in a manner which would increase the amount of principal payments except if increased in connection with (i) above, (v) convert or exchange the applicable Senior Junior Loan
into or for any other indebtedness, or subordinate any of such Senior Junior Loan, to any indebtedness of the applicable Senior Junior Borrower, (vi) accept a grant of any lien on or security
interest in any collateral or property of the applicable Senior Junior Borrower or any other Person not originally granted or contemplated to be granted under the applicable Senior Junior Loan
Documents, (vii) modify, waive or amend the terms and provisions of the applicable Senior Junior Loan Cash Management Agreement or the applicable Senior Junior Loan Agreement with respect to
(1) the definitions of "Acceptable Counterparty", "Debt Service", "Limited Cure Release Amount", "Release Amount" or "Spread Maintenance Premium" (as such terms are defined in the applicable
Senior Junior Loan Agreement and/or the applicable Senior Junior Loan 

39

 

Cash
Management Agreement), and any of the terms used within such definitions or the covenants relating thereto, (2) any reserves or escrows, including, without limitation, those for taxes,
insurance, debt service, repairs, replacements and ground rent, if any, or any provisions regarding the release of funds from escrow (or waive compliance therewith) or reduce or, except as may be
reasonably required, increase monthly escrow deposit amounts, (3) any future funding obligation or additional advances of loan proceeds, if any, or (4) the amount of, manner, timing,
method of the application of, or order of priority in payment, of payments under the applicable Senior Junior Loan Documents or the applicable Subordinate Junior Loan Documents,
(viii) cross-default or subordinate the applicable Senior Junior Loan to any other indebtedness other than the Senior Loan and any more senior Senior Junior Loan, (ix) obtain any equity
interest in Senior Borrower or any Junior Borrower other than pursuant to an Equity Collateral Enforcement Action permitted hereunder, or any contingent interest, additional interest or so called
"kicker", (x) consent to a higher strike price with respect to the current or any new or extended interest rate cap agreement entered into in connection with the applicable Senior Junior Loan
or any extended term of the applicable Senior Junior Loan or waive the requirement for a interest rate cap agreement if now or in the future called for under the applicable Senior Junior Loan
Documents or waive or release any obligation of the counterparty under any interest rate cap agreement, (xi) waive, amend or modify the transfer or encumbrance provisions in the applicable
Senior Junior Loan Documents, including, without limitation, modifying the Release Amount or Limited Cure Release Amount, (xii) spread the lien of the applicable Pledge Agreement to encumber
additional collateral, (xiii) extend the period during which voluntary prepayments are prohibited or during which prepayments require the payment of a prepayment fee or premium or yield
maintenance charge or impose any prepayment fee or premium or yield or spread maintenance charge in connection with a prepayment of the applicable Senior Junior Loan when none is now required or after
the current maturity date of the applicable Senior Junior Loan or increase the amount of such prepayment fee, premium or yield or spread maintenance charge, (xiv) modify, waive or amend, in any
material respect,
the terms and provisions of Section 6.1 of the applicable Senior Junior Loan Agreement, (xv) release its lien on any material portion of the collateral originally granted under the
applicable Senior Junior Loan Documents (except as may be required in accordance with the terms of the Senior Loan Documents, the more senior Senior Junior Loan Documents or the applicable Senior
Junior Loan Documents), (xvi) amend or modify the definition of Event of Default under the applicable Senior Junior Loan Documents, (xvii) impose any additional fees upon the applicable
Senior Junior Borrower that would be required to be paid on a periodic or regular basis, (xviii) add provisions which would prohibit or restrict any other Junior Lender (or any transferee of an
interest in any other Junior Loan) from acquiring the interest of the applicable Senior Junior Borrower by foreclosure of the applicable Equity Collateral or (xix) impose any financial
covenants on the applicable Senior Junior Borrower (or if such covenants exist, impose more restrictive financial covenants on the Senior Junior Borrower). In addition and notwithstanding the
foregoing provisions of this Section 8(c), (a) any amounts funded by a Senior Junior Lender under its respective Senior Junior Loan
Documents as a result of (1) the making of any Protective Advances or other advances by such Senior Junior Lender expressly permitted by the terms of its Senior Junior Loan Documents as of the
date hereof or (2) interest accruals or accretions and any compounding thereof (including default interest) shall not be deemed to contravene this  Section 8(c); provided, however, in no event
shall the applicable Senior Junior Lender be obligated to obtain any Subordinate Junior Lender's consent to a Senior Junior Loan Modification prohibited above in the case of a workout or other
surrender, extension, compromise, release, renewal, or indulgence relating to the applicable Senior Junior Loan following the occurrence and continuance of an Event of Default under the applicable
Senior Junior Loan Documents, except, that (A) under no condition shall the principal balance of the applicable Senior Junior Loan be increased in violation of item (i) above (with
respect to increase in principal amount only) or the provisions of item (viii), (xi) (with respect to permitting additional indebtedness), (xiii), (xvii), (xviii) or
(xix) above be violated, without in each case the prior written consent of each of the Subordinate Junior Lenders and (B) during any Junior Loan Monetary Cure Period, Junior Loan
Extended 

40

 

Monetary
Cure Period, Junior Loan Non-Monetary Cure Period or Junior Loan Extended Non-Monetary Cure Period, provided that each
Subordinate Junior Lender is in compliance with the provisions of Section 6 above, the applicable Senior Junior Lender will not violate the other
provisions of items (i) through (xix) above without the prior written consent of each Subordinate Junior Lender. 

        (d)   Senior
Lender shall deliver to Junior Lenders promptly upon execution thereof, copies of any and all modifications, amendments, extensions, consolidations, spreaders,
restatements, alterations, changes or revisions to any one or more of the Senior Loan Documents (including, without limitation, any side letters, waivers or consents entered into, executed or
delivered by Senior Lender). 

        (e)   Each
Junior Lender shall deliver to Senior Lender and the other Junior Lenders promptly upon execution thereof, copies of any and all modifications, amendments,
extensions, consolidations, spreaders, restatements, alterations, changes or revisions to any one or more of its respective Junior Loan Documents (including, without limitation, any side letters,
waivers or consents entered into, executed or delivered by such Junior Lender). 

        (f)    Each
Junior Lender shall consent to the amendment or modification of a Junior Borrower's organizational documents upon request by Senior Lender and/or the applicable
Senior Junior Lender in order to satisfy requests made by Rating Agencies rating any Certificates, provided that such amendment or modification does not have a material adverse effect on the Junior
Loan and the costs and expenses thereof are not payable by such Junior Lender. 

        Section 9.    Subordination of Junior Loans and Junior Loan Documents.    (a) Except as otherwise
provided in this Agreement, each Junior Lender hereby subordinates and makes junior the Junior Loan held by such Junior Lender, the related Junior Loan Documents and the liens and security interests
created thereby, and all rights, remedies, terms and covenants contained therein to (i) the Senior Loan and the applicable Senior Junior Loans, (ii) the liens and security interests
created by the Senior Loan Documents and the applicable Senior Junior Loan Documents, and (iii) all of the terms, covenants, conditions, rights and remedies contained in the Senior Loan
Documents and the applicable Senior Junior Loan Documents and no extensions, modifications, consolidations, supplements, amendments, replacements and restatements of and/or to the Senior Loan
Documents or the applicable Senior Junior Loan Documents that are permitted by Section 8 shall affect the subordination thereof as set forth in
this Section 9. Senior Lender and the Junior Lenders each hereby acknowledge and agree except as set forth in  Section 6(b) hereof, that:

        (A)  Senior
Lender has not acquired, and shall not hereafter acquire, any lien on, or any other interest whatsoever in the Separate Collateral relating to any Junior Loan
that is held by the related Junior Lender, or any part thereof and that collection from such Separate Collateral (including any Guaranty Claim), the exercise of remedies and realization upon such
Separate Collateral by such Junior Lender or any applicable Loan Pledgee and the application of proceeds therefrom as such Junior Lender deems appropriate in its discretion are, except as set forth in  Section 6(b)
 hereof, expressly permitted and shall not constitute a default or an event of default under this Agreement, the Senior Loan
Documents or the applicable Junior Loan Documents; 

        (B)  No
other property of a Junior Borrower is collateral for the Senior Loan; 

        (C)  No
Senior Junior Lender has acquired, and no Senior Junior Lender shall hereafter acquire, any lien on, or any other interest whatsoever in the Separate Collateral
relating solely to any Subordinate Junior Loan that is held by the related Subordinate Junior Lender, or any part thereof and that collection from any such Separate Collateral (including any Guaranty
Claim), the exercise of remedies and realization upon such Separate Collateral by such Subordinate Junior Lender or any applicable Loan Pledgee and the application of proceeds therefrom as such
Subordinate Junior Lender deems appropriate in its discretion are, except as set forth in Section 6(b) hereof, expressly permitted and shall not
constitute a default or an event of default under this Agreement, the applicable Senior Junior Loan Documents or the applicable Subordinate Junior Loan Documents; 

41

 

 

        (D)  No
property of the applicable Subordinate Junior Borrower is collateral for any Senior Junior Loan; 

        (E)  No
Junior Borrower has any legal obligations to pay the Senior Loan or to render any other performance under the Senior Loan Documents and no Junior Borrower has any
legal obligations to pay any other Junior Loan or to render any other performance under the Junior Loan Documents for any other Junior Loan; and 

        (F)  Senior
Lender is not a creditor of any Junior Borrower and no more senior Senior Junior Lender is a creditor of any other more junior Subordinate Junior Borrower. 

        (b)   Except
with respect to the Separate Collateral or any Guaranty, every document and instrument included within the Junior Loan Documents shall be subject and subordinate
to each and every document and instrument included within the Senior Loan Documents and the applicable Senior Junior Loan Documents and all extensions, modifications, consolidations, supplements,
amendments, replacements and restatements of and/or to the Senior Loan Documents and the applicable Senior Junior Loan Documents to the extent such extensions, modifications, consolidations,
supplements, amendments, replacements and restatements are permitted by the terms hereof. 

        Section 10.    Payment Subordination.    (a) Except (i) as otherwise expressly provided in this
Agreement and (ii) in connection with the exercise by a Junior Lender of its rights and remedies with respect to the Separate Collateral (or, subject to the terms of  Section 6(b) hereof, any
Guaranty Claim) in accordance with the terms of this Agreement and the application of the proceeds therefrom as Junior
Lender deems appropriate in its discretion, (x) all of such Junior Lender's rights to payment of the Junior Loan held by such Junior Lender and the obligations evidenced by the related Junior
Loan Documents are hereby subordinated to all of Senior Lender's rights to payment by Borrower of the Senior Loan and the obligations secured by the Senior Loan Documents, and such Junior Lender shall
not accept or receive payments (including, without limitation, whether in cash or other property and whether received directly, indirectly or by set-off, counterclaim or otherwise, but
excluding, the proceeds received from any bona fide third party in connection with a secured party sale of such Junior Lender's Equity Collateral, which may be retained by such Junior Lender) from
Borrower and/or from the Premises prior to the date that all of the Senior Loan Liabilities then due to Senior Lender under the Senior Loan Documents are paid in full and (y) all of such Junior
Lender's rights to payment of the Junior Loan held by such Junior Lender and the obligations evidenced by the related Junior Loan Documents are hereby subordinated to all of the applicable Senior
Junior Lender's rights to payment by the applicable Senior Junior Borrowers of the applicable Senior Junior Loans and the obligations secured by the applicable Senior Junior Loan Documents, and such
Junior Lender shall not accept or
receive payments (including, without limitation, whether in cash or other property and whether received directly, indirectly or by set-off, counterclaim or otherwise, but excluding, the
proceeds received from any bona fide third party in connection with a secured party sale of such Junior Lender's Equity Collateral, which may be retained by such Junior Lender) from Borrower, the
Premises, from the applicable Senior Junior Borrower and/or the proceeds from items identified in clauses (i) or (ii) of the definition of Separate Collateral (but excluding, the
proceeds received from any bona fide third party in connection with a secured party sale of such Junior Lender's Equity Collateral or any Guaranty Claim) securing or guaranteeing the applicable Senior
Junior Loans prior to the date that all obligations of the applicable Senior Junior Borrowers then due to the applicable Senior Junior Lenders under the applicable Senior Junior Loan Documents are
paid in full. 

        (b)   If
(i) a Proceeding with respect to Senior Borrower shall have occurred and has not been dismissed or (ii) there shall have occurred and be continuing an
Event of Default under the Senior Loan Documents, after giving effect to Junior Lender's cure rights pursuant to Section 12, except as expressly
otherwise provided herein, Senior Lender shall be entitled to receive payment and performance in full of all amounts due or to become due to Senior Lender before any Junior Lender is 

42

 

entitled
to receive any payment (including any payment which may be payable by reason of the payment of any other indebtedness of Senior Borrower being subordinated to the payment of the Junior Loans)
on account of any Junior Loan (other than payments with respect to a Junior Lender's Separate Collateral permitted pursuant to this Agreement). If (i) a Proceeding with respect to Senior Junior
Borrower shall have occurred and has not been dismissed or (ii) there shall have occurred and be continuing an Event of Default under the Senior Junior Loan Documents, after giving effect to
Subordinate Junior Lender's cure rights pursuant to Section 12, the Senior Junior Lender holding the applicable Senior Junior Loan shall be
entitled to receive payment and performance in full of all amounts due or to become due to such Senior Junior Lender before any applicable Subordinate Junior Lender is entitled to receive any payment
(including any payment which may be payable by reason of the payment of any other indebtedness of any Junior Borrower being subordinated to the payment of the applicable Senior Junior Loans) on
account of any applicable Subordinate Junior Loan (other than payments with respect to any applicable Subordinate Junior Lender's Separate Collateral permitted pursuant to this Agreement). All
payments or distributions upon or with respect to a Junior Loan which are received by a Junior Lender contrary to the provisions of this Agreement shall be received by such Junior Lender in trust for
the benefit of Senior Lender and the applicable Senior Junior Lenders to the extent payable to Senior Lender or the applicable Senior Junior Lenders and shall be paid within two (2) Business
Days of receipt thereof over first to Senior Lender to the extent then payable to Senior Lender and then to the applicable Senior Junior Lenders in the same form as so received (with any necessary
endorsement) to be applied (in the case of cash) to, or held as collateral (in the case of non-cash property or securities) for, the payment or performance first of the Senior Loan
Liabilities in accordance with the terms of the Senior Loan Documents and then for, the payment or performance of the applicable Senior Junior Loan Liabilities in accordance with the terms of the
Senior Junior Loan Documents. Nothing contained herein shall prohibit a Junior Lender from making Protective Advances (and adding the amount thereof to the principal balance of its Junior Loan)
notwithstanding the existence of a default under the Senior Loan at such time. 

        (c)   Notwithstanding
anything to the contrary contained in this Agreement, including, without limitation,  Sections 10(a) and (b), provided that
(x) after giving effect to each Junior Lender's cure rights pursuant to Section 12 hereof, no Event of Default shall exist and be
continuing under the Senior Loan Documents or the applicable Senior Junior Loan Documents, or Junior Lender shall be pursuing its rights with respect to an Extended Non-Monetary Cure
Period in accordance with and subject to the terms and conditions set forth in Section 12 of this Agreement with respect thereto and
(y) the maturity date of the Senior Loan and the applicable Senior Junior Loan (in each case, as the same may be extended) has not occurred or been accelerated (unless following any such
acceleration the Senior Loan and/or the applicable Senior Junior Loan was reinstated and no Event of Default exists thereunder): 

          (i)  a
Junior Lender may accept and retain current and delinquent payments due and payable from time to time which the applicable Junior Borrower is obligated to pay to such
Junior Lender, or prepayments permitted to be made by such Junior Borrower, in either case in accordance with the terms and conditions of the applicable Junior Loan Documents. If funds are distributed
to a Junior Lender in accordance with the Senior Loan Documents or the applicable Senior Junior Loan Documents, Senior Lender and the applicable Senior Junior Lender agrees that, absent clear evidence
of error, such distribution shall be deemed to have been properly paid to such Junior Lender and may be accepted and retained by such Junior Lender; 

         (ii)  a
Junior Lender may accept and retain amounts received in connection with the exercise of its rights and remedies with respect to the Separate Collateral (or, subject
to the terms of Section 6(b) hereof, any Guaranty Claim) in accordance with this Agreement; and 

        (iii)  a
Junior Lender may accept and retain prepayments of its respective Junior Loan, together with any prepayment fee payable pursuant to such Junior Loan Documents, from
funds 

43

 

other
than those funds held in the Senior Cash Management Account (as defined in the Senior Loan Agreement) or any applicable Senior Junior Loan Cash Management Account. 

        (d)   Subject
to the terms and provisions of Section 6 hereof, a Junior Lender may, in its sole and absolute discretion
without Senior Lender's or any Senior Junior Lender's consent, take any Equity Collateral Enforcement Action or Separate Collateral Enforcement Action;  provided, however, (i) such Junior Lender shall, prior to commencing any Equity Collateral
Enforcement Action, give the Senior Lender and the applicable Senior Junior Lenders written notice of the default which would permit such Junior Lender to commence such Equity Collateral Enforcement
Action, as well as provide Senior Lender and the applicable Senior Junior Lenders with copies of any and all material notices, pleadings, agreements, motions and briefs served upon, delivered to or
with any party to any Equity Collateral Enforcement Action, (ii) such Junior Lender shall keep the Senior Lender and the applicable Senior Junior Lenders reasonably apprised as to the status of
any Equity Collateral Enforcement Action and (iii) if and to the extent that a Qualified Transferee acquires all of the ownership interests in an applicable Junior Borrower pursuant to an
Equity Collateral Enforcement Action in accordance with the terms of this Agreement, then upon, from and after the vesting of title thereto, such Junior Lender's rights pursuant to  Section 12 and
Section 14 and the obligations of Senior Lender and the applicable Senior
Junior Lenders pursuant to Section 12 and Section 14 with respect to such Junior Lender
shall be null and void and of no further force and effect and every other provision in this Agreement which references such Sections, rights or obligations shall thereafter be read as if such
reference, right or obligation were not contained or specified therein with respect to such Junior Lender. Nothing in this Agreement is intended to create and this Agreement does not create any
security interest by any Junior Lender in favor of Senior Lender and the applicable Senior Junior Lenders and shall not constitute a guarantee by any Junior Lender of its respective Junior Borrower's
obligations under the applicable Junior Loan Documents. 

        (e)   In
the event of a casualty to the buildings or improvements constructed on any portion of the Premises or a condemnation or taking under a power of eminent domain of all
or any portion of the Premises, the buildings or improvements thereon, Senior Lender shall have a first and prior interest in and to any payments, awards, proceeds, distributions, or consideration
arising from any such event after deducting the costs of collection (the "Award"), provided that if the
amount of the Award is in excess of the Adjusted Release Amount (as defined in the Senior Loan Agreement) due the Senior Lender under the Senior Loan Documents, such excess Award or portion to be so
remitted shall be applied, to the extent permitted under the Senior Loan Documents, as follows: (i) first, to the First Mezzanine Lender in the amount of the First Mezzanine Adjusted Release
Amount (as defined in the Senior Loan Agreement) due the First Mezzanine Lender under the First Mezzanine Loan Documents, (ii) second, to the Second Mezzanine Lender in the amount of the Second
Mezzanine Adjusted Release Amount (as defined in the Senior Loan Agreement) due the Second Mezzanine Lender under the Second Mezzanine Loan Documents, (iii) third, to the Third Mezzanine Lender
in the amount of the Third Mezzanine Adjusted Release Amount (as defined in the Senior Loan Agreement) due the Third Mezzanine Lender under the Third Mezzanine Loan Documents, (iv) fourth, to
the Fourth Mezzanine Lender in the amount of the Fourth Mezzanine Adjusted Release Amount (as defined in the Senior Loan Agreement) due the Fourth Mezzanine Lender under the Fourth Mezzanine Loan
Documents, (v) fifth, to the Fifth Mezzanine Lender in the amount of the Fifth Mezzanine Adjusted Release Amount (as defined in the Senior Loan Agreement) due the Fifth Mezzanine Lender under
the Fifth Mezzanine Loan Documents, (vi) sixth, to the Sixth Mezzanine Lender in the amount of the Sixth Mezzanine Adjusted Release Amount (as defined in the Senior Loan Agreement) due the
Sixth Mezzanine Lender under the Sixth Mezzanine Loan Documents, (vii) seventh, to the Seventh Mezzanine Lender in the amount of the Seventh Mezzanine Adjusted Release Amount (as defined in the
Senior Loan Agreement) due the Seventh Mezzanine Lender under the Seventh Mezzanine Loan Documents, and (viii) eighth, to Senior Borrower. In the event of any competing claims, Senior Lender
shall continue to hold such excess Award until Senior Lender receives an agreement signed by all 

44

 

parties
making a claim to the excess Award or a final order of a court of competent jurisdiction directing Senior Lender as to how the excess Award is to be distributed. Notwithstanding the foregoing,
in the event of a casualty or condemnation, Senior Lender shall release the Awards in any such event to Senior Borrower if and to the extent required by the terms and conditions of the Senior Loan
Documents in order to repair and restore the Premises or any portion thereof in accordance with the terms and provisions of the Senior Loan Documents. Awards made available to Senior Borrower for the
repair or restoration of the Premises or any portion thereof shall not be subject to attachment by any Junior Lender, but this sentence is not intended to otherwise affect any lien, if any, that a
Junior Lender may have upon such proceeds. Senior Lender shall use reasonable efforts to promptly (x) notify each Junior Lender of any requests by Senior Borrower for the release of any Award
and (y) provide each Junior Lender with any documentation delivered by Senior Borrower to Senior Lender with respect to any such request by Senior Borrower for the release of any Award. 

        (f)    With
respect to any insurance policies (collectively, the "Policies") for the Premises for which a Junior Lender and/or
its Affiliate are identified as "named insureds" or "additional insureds", until such time as the Senior Loan has been paid in full, each Junior Lender acknowledges and agrees that no Junior Lender
nor any of its Affiliates shall have any right whatsoever to (i) contest or challenge (in their capacity as named insureds) any such settlement or adjustment approved by Senior Lender,
(ii) disapprove any settlement or adjustment of any claim or any distribution of proceeds under the Policies approved by Senior Lender, or (iii) be issued checks, drafts or wires
(jointly or otherwise) representing proceeds of the Policies. Nothing contained in this subparagraph (f) is meant to limit any rights that a Junior Lender has under its respective Junior Loan
Documents to approve of any action taken by the applicable Junior Borrower. Senior Lender shall, at a Junior Lender's request, advise such Junior Lender from time to time as to the status of any
settlement or adjustment of any claim or any distribution of proceeds under the Policies. 

        Section 11.    Rights of Subrogation; Bankruptcy.    

        (a)    Marshalling of Assets and Information.    Each Junior Lender and Senior Lender hereby waives any requirement
for marshaling of assets hereby or the right to assert that an election of remedies has occurred in connection with any foreclosure of any security interest or any other realization upon collateral in
respect of the Senior Loan Documents or the Junior Loan Documents, as applicable, or any exercise of any rights of set-off or otherwise. Each of the Junior Lenders and Senior Lender
assumes all responsibility for keeping itself informed as to the condition (financial or otherwise) of Senior Borrower, each Junior Borrower, the condition of the Premises and all other collateral and
other circumstances and, except for notices expressly required by this Agreement, neither Senior Lender nor any Junior Lender shall have any duty whatsoever to obtain, advise or deliver information or
documents to the others relative to such condition, business, assets and/or operations. 

        (b)    Fiduciary Duties.    Each Junior Lender agrees that Senior Lender owes no fiduciary duty to any Junior Lender
in connection with the administration of the Senior Loan and the Senior Loan Documents and each Junior Lender agrees not to assert any such claim. Senior Lender agrees that none of the Junior Lenders
owes any fiduciary duty to Senior Lender in connection with the administration of the Junior Loans and the Junior Loan Documents and Senior Lender agrees not to assert any such claim. Each Junior
Lender agrees that no Junior Lender owes any fiduciary duty to any other Junior Lenders in connection with the administration of a Junior Loan and the related Junior Loan Documents and each Junior
Lender agrees not to assert any such claim. 

        (c)    Payments, Distributions and Protective Advances.    No payment or distribution to Senior Lender pursuant to the
provisions of this Agreement and no Protective Advance by a Junior Lender and no other action taken by a Junior Lender to cure any default under the Senior Loan Documents shall entitle such Junior
Lender to exercise any right of subrogation in respect thereof or provide such Junior Lender with any claim against Senior Borrower, in each case, prior to the payment in full of the 

45

 

Senior
Loan Liabilities, and each of the Junior Lenders agrees that, except with respect to the enforcement of its remedies under the Junior Loan Documents related to the Junior Loan held by such
Junior Lender permitted hereunder, prior to the satisfaction of all Senior Loan Liabilities it shall not acquire, by subrogation or otherwise, any lien, estate, right or other interest in any portion
of the Premises or any other collateral now securing the Senior Loan or the proceeds therefrom that is or may be prior to, or of equal priority to, any of the Senior Loan Documents or the liens,
rights, estates and interests created thereby. No payment or distribution to any applicable Senior Junior Lender pursuant to the provisions of this Agreement and no Protective Advance by a Junior
Lender and no other action taken by a Junior Lender to cure any default under the Senior Junior Loan Documents shall entitle such Junior Lender to exercise any right of subrogation in respect thereof
prior to the payment in full of the applicable Senior Junior Loan Liabilities, and each Junior Lender agrees that, except with respect to the enforcement of its remedies under the Junior Loan
Documents related to the Junior Loan held by such Junior Lender permitted hereunder, prior to the satisfaction of all applicable Senior Junior Loan Liabilities it shall not acquire, by subrogation or
otherwise, any lien, estate, right or other interest in any portion of the Premises, the Separate Collateral of any applicable Senior Junior Lender or any other collateral now securing the Senior Loan
or any applicable Senior Junior Loan or the proceeds therefrom that is or may be prior to, or of equal priority to, any of the applicable Senior Junior Loan Documents or the Senior Loan Documents or
the liens, rights, estates and interests created thereby. 

        (d)    Bankruptcy.    (i) Subject to Section 31 of this
Agreement, the provisions of this Agreement shall be applicable both before and after the commencement, whether voluntary or involuntary, of any case, proceeding or other action by or against Senior
Borrower, any Junior Borrower or any SPE Constituent Entity under any existing or future law of any jurisdiction relating to bankruptcy, insolvency, reorganization or relief of debtors or any
assignment by Borrower for the benefit of creditors (a "Proceeding"). 

          (i)  For
as long as the Senior Loan shall remain outstanding, none of the Junior Lenders shall solicit, direct or cause Borrower or any other entity which Controls Senior
Borrower (the "Borrower Group") or any other Person to: (1) commence any Proceeding against Senior Borrower or any SPE Constituent Entity;
(2) institute proceedings to have Senior Borrower or any SPE Constituent Entity adjudicated a bankrupt or insolvent; (3) consent to, or acquiesce in, the institution of bankruptcy or
insolvency proceedings against Senior Borrower or any SPE Constituent Entity; (4) file a petition or consent to the filing of a petition seeking reorganization, arrangement, adjustment,
winding-up, dissolution, composition, liquidation or other relief by or on behalf of Senior Borrower or any SPE Constituent Entity; (5) seek or consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official for Senior Borrower or any SPE Constituent Entity or a substantial portion of any of its respective property,
including without limitation, the Premises, or any portion thereof, and any other collateral securing the Senior Loan, or any portion thereof; (6) make an assignment for the benefit of any
creditor of Senior Borrower or any SPE Constituent Entity; (7) seek to consolidate the Premises or any other assets of Senior Borrower or any SPE Constituent Entity with the assets of any
Junior Borrower or any member of the Borrower Group in any proceeding relating to bankruptcy, insolvency, reorganization or relief of debtors; (8) seek to consolidate Senior Borrower with any
Junior Borrower or any member of Borrower Group; or (9) take any action in furtherance of any of the foregoing. The terms and provisions of this  Section 11(d) apply to each Junior Lender
solely in its respective capacity as a Junior Lender. If any Junior Lender commences an Equity
Collateral Enforcement Action against any Junior Borrower, and pursuant to such Equity Collateral Enforcement Action, such Junior Lender takes title to the Equity Collateral of such Junior Borrower,
from and after the date title to such Equity Collateral is vested in such Junior Lender (as applicable), such Junior Lender shall be bound by the terms and provisions of the respective organizational
documents of such Junior Borrower regarding bankruptcy and all matters requiring 

46

 

the
vote of the independent directors/managers/members of such Junior Borrower. Subject to the limitations set forth herein, each Junior Lender will have the right to appear in such Proceeding to
protect its interest in the relevant Equity Collateral, in the Junior Lender's capacity as pledgee of the Equity Collateral. 

         (ii)  In
the event that a Junior Lender is deemed to be a creditor of Senior Borrower in any Proceeding: (1) each of the Junior Lenders hereby agrees that it shall not
make any election, give any consent, commence any action or file any motion, claim, obligation, notice or application or take any other action in any Proceeding by or against Senior Borrower or any
SPE Constituent Entity without the prior consent of Senior Lender, except to the extent necessary to preserve or realize upon such Junior Lender's interest in any Separate Collateral pledged to such
Junior Lender pursuant to the Junior Loan Documents related to the Junior Loan held by such Junior Lender; provided,  however, that any such filing shall
not be as a creditor of the Senior Borrower; (2) Senior Lender may vote in any such Proceeding any and all
claims of such Junior Lender, and each of the Junior Lenders hereby appoints the Senior Lender as its agent, and grants to the Senior Lender an irrevocable power of attorney coupled with an interest,
and its proxy, for the purpose of exercising any and all rights and taking any and all actions available to such Junior Lender in connection with any case by or against Senior Borrower or any SPE
Constituent Entity in any Proceeding, including without limitation, the right to file and/or prosecute any claims, to vote to accept or reject a plan, to make any election under Section 1111(b)
of the Bankruptcy Code, provided, however, that with respect to any proposed plan of reorganization in
respect of which creditors are voting, Senior Lender may vote on behalf of such Junior Lender only if the proposed plan would result in Senior Lender being "impaired" (as such term is defined in the
United States Bankruptcy Code); and (3) no Junior Lender shall challenge the validity or amount of any claim submitted in such Proceeding by Senior Lender in good faith or any valuations
of the Premises, or any portion thereof, or other Senior Loan collateral submitted by Senior Lender in good faith, in such Proceeding or take any other action in such Proceeding, which is adverse to
Senior Lender's enforcement of its claim or receipt of adequate protection (as that term is defined in the Bankruptcy Code); provided,  however that no such
valuations submitted in such Proceeding by Senior Lender shall be binding upon any Junior Lender in any Proceeding concerning any
other Person, including, without limitation, any Junior Borrower, any member of the Junior Borrower Group, or any Affiliate thereof. Prior to Securitization of the Senior Loan (or after a
Securitization of the Senior Loan if Senior Lender owns all of the Certificates), Senior Lender shall not have the rights provided in this  Section 11(d)(iii) if Senior Lender is an Affiliate of
Senior Borrower. 

        (iii)  For
as long as any applicable Senior Junior Loan with respect to a Junior Lender shall remain outstanding, such Junior Lender shall not, and shall not solicit any
Person to, and shall not direct or cause the Junior Borrower under the Junior Loan held by such Junior Lender to direct or cause such Junior Borrower or any entity which Controls such Junior Borrower
(as applicable, the "Junior Borrower Group") to: (1) commence any Proceeding against any applicable Senior Junior Borrower; (2) institute
proceedings to have any applicable Senior Junior Borrower adjudicated a bankrupt or insolvent; (3) consent to, or acquiesce in, the institution of bankruptcy or insolvency proceedings against
any applicable Senior Junior Borrower; (4) file a petition or consent to the filing of a petition seeking reorganization, arrangement, adjustment, winding-up, dissolution,
composition, liquidation or other relief by or on behalf of any applicable Senior Junior Borrower; (5) seek or consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator, custodian or any similar official for any applicable Senior Junior Borrower, Separate Collateral for any applicable Senior Junior Loan (or any portion thereof) or any other collateral
securing any applicable Senior Junior Loan (or any portion thereof); (6) make an assignment for the benefit of any creditor of any applicable Senior Junior Borrower; (7) seek to
consolidate the Separate Collateral for any applicable Senior Junior Loan (or any portion thereof) or any other 

47

 

assets
of any applicable Senior Junior Borrower with the assets of the Junior Borrower under the Junior Loan held by such Junior Lender or any member of the applicable Junior Borrower Group in any
proceeding relating to bankruptcy, insolvency, reorganization or relief of debtors; (8) seek to consolidate any applicable Senior Junior Borrower with any Subordinate Junior Borrower or any
member of Junior Borrower Group for a Subordinate Junior Borrower; or (9) take any action in furtherance of any of the foregoing. 

        (iv)  In
the event that a Junior Lender is deemed to be a creditor of any applicable Senior Junior Borrower in any Proceeding: (1) such Junior Lender hereby agrees
that it shall not make any election, give any consent, commence any action or file any motion, claim, obligation, notice or application or take any other action in any Proceeding by or against any
applicable Senior Junior Borrower without the prior consent of the applicable Senior Junior Lenders, except to the extent necessary to preserve or realize upon its interest in the Equity Collateral;  provided, however, that any such filing shall not be as a creditor of any applicable Junior Borrower;
(2) the applicable Senior Junior Lenders in their respective order of priority may vote in any such Proceeding any and all claims of such Junior Lender, and such Junior Lender hereby appoints
the applicable Senior Junior Lenders in their respective order of priority as its agent, and grants to the applicable Senior Junior Lenders in their respective order of priority an irrevocable power
of attorney coupled with an interest, and its proxy, for the purpose of exercising any and all rights and taking any and all actions available to the applicable Senior Junior Lenders in connection
with any case by or against the applicable Senior Junior Borrowers in any
Proceeding, including without limitation, the right to file and/or prosecute any claims, to vote to accept or reject a plan, to make any election under Section 1111(b) of the Bankruptcy Code,  provided, however, that with respect to any proposed plan of reorganization in respect of which
creditors are voting, the applicable Senior Junior Lenders in their respective order of priority may vote on behalf of such Junior Lender only if the proposed plan would result in such applicable
Senior Junior Lender being "impaired" (as such term is defined in the United States Bankruptcy Code); and (3) such Junior Lender shall not challenge the validity or amount of any claim
submitted in such Proceeding by any applicable Senior Junior Lender in good faith or any valuations of the Separate Collateral for such Senior Junior Lender's Senior Junior Loan or other collateral
for such applicable Senior Junior Loan submitted by such applicable Senior Junior Lender in good faith, in such Proceeding or take any other action in such Proceeding, which is adverse to enforcement
by any applicable Senior Junior Lender of its claim or receipt of adequate protection (as that term is defined in the Bankruptcy Code); provided,  however
that no such valuations submitted in such Proceeding by Senior Junior Lender shall be binding upon any Junior Lender in any Proceeding
concerning any other Person, including, without limitation, any Junior Borrower, any member of the Junior Borrower Group, or any Affiliate thereof. No Senior Junior Lender shall have the rights
provided in this Section 11(d)(v) if such Senior Junior Lender is an Affiliate of Borrower. 

         (v)  The
terms and provisions of this Section 11(d) apply to each Junior Lender solely in its capacity as a Junior
Lender. 

        Section 12.    Rights of Cure.    

        (a)    Senior Loan Default.    Prior to Senior Lender commencing any Enforcement Action under the Senior Loan
Documents, Senior Lender shall provide written notice of such default to each Junior Lender and any Loan Pledgee entitled to notice thereof pursuant to  Section 16 of this Agreement, whether or not
Senior Lender is obligated to give notice thereof to Senior Borrower (each, a
"Senior Loan Default Notice"). In the event Senior Lender has delivered a Senior Loan Default Notice pursuant to  Sections 12(a)(i) or (ii) below which has not been cured by a Junior Lender, Senior Lender shall
provide the Junior Lenders with copies of any and all material notices relating to such Event of Default, pleadings, agreements, motions and briefs served upon, delivered to or with any party to any
Enforcement Action and otherwise keep the Junior Lenders reasonably apprised as to the current 

48

 

status
of any Enforcement Action. Prior to or concurrently with undertaking any curative action with respect to the Senior Loan, a Junior Lender shall provide the other Junior Lenders with written
notice thereof. Senior Lender shall permit the Junior Lenders an opportunity to cure such default in accordance with the following terms: 

          (i)  Monetary Default.    If the default identified in the Senior Loan Default Notice is a monetary default
relating to (1) any scheduled payment of principal or interest, or (2) the payment of any other liquidated sum of money, Junior Lenders shall have until ten (10) Business Days
after the later of (a) the receipt (or deemed receipt) of the Senior Loan Default Notice or (b) expiration of the Senior Borrower's cure period, if any, to cure such monetary default (a
"Monetary Cure Period"); provided, however, that in the
event a Junior Lender elects to cure such monetary default, such Junior Lender hereby agrees (x) to indemnify, defend and hold harmless Senior Lender for all cost, expenses, losses,
liabilities, obligations, damages, penalties, and disbursements arising under any pooling and servicing agreement applicable to the Senior Loan to the extent imposed on, incurred by or asserted
against Senior Lender due to or arising from such Monetary Cure Period, (y) without duplication of the foregoing, to reimburse Senior Lender for any interest charged by Senior Lender or the
servicer on any advances for monthly payments of principal and/or interest on the Senior Loan and/or on any Protective Advances during the Monetary Cure Period arising under the applicable pooling and
servicing agreement, and (z) if the monetary default is not cured within the Monetary Cure Period but is thereafter cured by a Junior Lender, to pay Senior Lender the excess of interest
accruing at the Default Rate (without duplication) over interest accruing at the Interest Rate under the Senior Loan for the number of days beyond the expiration of such Monetary Cure Period that the
default to which such Monetary Cure Period related continued uncured, less any amounts paid by such Junior Lender under (y) above. A Junior Lender shall not be required, in order to effect a
cure hereunder during the Monetary Cure Period, to pay any late charges or (other than the cure by a Junior Lender of a default in the payment of the Senior Loan in full on the maturity date thereof)
any interest at the Default Rate under the Senior Loan Documents (irrespective of any cure of such default by a Junior Lender pursuant to the provisions of this Agreement), and no late charges or
interest at the Default Rate shall accrue against such Junior Lender for such period. There shall be no right to cure as hereinabove set forth with respect to monthly scheduled interest and principal
payments for a period of more than six (6) consecutive months (regardless of which Junior Lender has cured such monetary default) unless such Junior Lender seeking to cure beyond such six
(6) month period has commenced and is continuing to diligently pursue its rights against such Junior Lender's Equity Collateral, in which case such Junior Lender shall be entitled to continue
curing such monetary defaults involving monthly scheduled interest and principal payments until the occurrence of any voluntary or involuntary Proceeding involving Senior Borrower (such additional
monetary cure period, an "Extended Monetary Cure Period"). In the event more than one Junior Lender cures any monetary default in accordance with the
terms of this Section, Senior Lender hereby agrees (x) to accept the cure from the junior most Junior Lender and (y) to return to any Senior Junior Lender(s) within three
(3) Business Days of accepting such cure from the junior most Junior Lender any funds tendered by the Senior Junior Lender(s). The cure period for a Junior Lender with respect to a monetary
default shall run concurrently with the cure period for the other Junior Lenders with respect to such monetary default and in no event sequentially. Notwithstanding the foregoing, if one Junior Lender
has satisfied the conditions for an Extended Monetary Cure Period with respect to defaults involving monthly scheduled interest and principal payments as set forth above and thereafter ceases to
qualify for such Extended Monetary Cure Period (either by failing to make cure payments or failing to diligently pursue its rights against its Equity Collateral) then (A) such Junior Lender's
cure rights with respect to all monetary defaults shall immediately terminate (unless Borrower shall have cured all defaults and reinstated the Senior Loan in good standing) and
(B) notwithstanding any of the other Junior Lender's earlier 

49

 

election
not to cure the defaults involving monthly scheduled interest and principal payments, such other Junior Lenders shall be entitled to succeed to all rights under the existing Extended Monetary
Cure Period, upon written notice to the Senior Lender, so long as such other Junior Lender promptly commences and thereafter diligently pursues its rights against its Equity Collateral, makes all cure
payments and otherwise satisfies the provisions of this Section 12. If the default referenced in a Senior Loan Default Notice has been cured such
that there is no longer an Event of Default under the Senior
Loan Documents, the Junior Lenders shall have the same Monetary Cure Period with respect to any future Senior Loan Default Notice. 

         (ii)  Non-Monetary Default.    If the default is of a non-monetary nature (for so long as
such non-monetary default is not caused by a Proceeding of Senior Borrower or during such Non-Monetary Cure Period (as defined herein) a Proceeding of Senior Borrower does not
occur), each Junior Lender shall have until the later of (a) ten (10) Business Days from the receipt (or deemed receipt) of the Senior Loan Default Notice and (b) the expiration
of the Senior Borrower's cure period to cure such non-monetary default (a "Non-Monetary Cure Period");  provided, however, if such non-monetary default cannot reasonably be cured within such
period or if no cure period is provided and, if applicable, curative action was commenced by such Junior Lender within the Non-Monetary Cure Period and, if there is a cure period, is being
diligently pursued by a Junior Lender (or with respect to a non-monetary default that is not susceptible of cure, if a Junior Lender shall be diligently pursuing the foreclosure of its
Equity Collateral and such non-monetary default does not materially impair the value, use or operation of the Premises, all as determined in the reasonable judgment of Senior Lender), then
such Junior Lender only shall be given an additional period of time as is reasonably necessary for such Junior Lender in the exercise of due diligence to cure such non-monetary default
(or, in the case of any such non-monetary default as described above that is not susceptible of cure, then such Junior Lender shall be given an additional period of time as is reasonably
necessary for such Junior Lender in the exercise of due diligence to complete such foreclosure), for so long as (1) such Junior Lender diligently and expeditiously proceeds to cure such
non-monetary default (or with respect to a non-monetary default that is not susceptible of cure, if such Junior Lender shall be diligently pursuing the foreclosure of its
Equity Collateral and such non-monetary default does not materially impair the value, use or operation of the Premises, all as determined in the reasonable judgment of Senior Lender),
(2) timely payment of Senior Lender's regularly scheduled monthly interest and amortization payments under the Senior Loan and any other amounts due under the Senior Loan Documents is made,
(3) such additional period of time does not exceed sixty (60) days, unless such non-monetary default is of a nature that cannot be cured within such sixty (60) days
without ownership of such Junior Lender's Equity Collateral or is not susceptible to cure, in which case such Junior Lender shall have such additional time as is reasonably necessary to gain ownership
of its Equity Collateral, provided that such Junior Lender is continuously and diligently pursuing the ownership of its Equity Collateral and such non-monetary default does not materially
impair the value, use or operation of the Premises, all as determined in the reasonable judgment of Senior Lender, (4) such non-monetary default is not caused by a Proceeding of
Senior Borrower or during such Non-Monetary Cure Period a Proceeding of Senior Borrower does not occur, and (5) during such Non-Monetary Cure Period, with respect to
such non-monetary default (and any additional period of time provided for above), there is no further material adverse effect on Senior Borrower, the Senior Loan or the value, use or
operation of the Premises taken as a whole, all as determined in the reasonable judgment of Senior Lender (such additional Non-Monetary Cure Period, an "Extended
Non-Monetary Cure Period"). Notwithstanding anything to the contrary contained herein, in no event shall any Extended Non-Monetary Cure Period extend
beyond the date that is five (5) years prior to the Rated Final Distribution Date. If a Junior Lender is exercising its cure right, it shall consult with the applicable Senior Junior Lenders
and keep such Senior Junior Lenders informed as to its progress. The Non-Monetary Cure Period and any additional cure 

50

 

period
granted hereunder to a Junior Lender electing to cure a non-monetary default of Senior Borrower (including, with respect to a non-monetary default that is not
susceptible of cure, any additional time as is reasonably necessary for a Junior Lender to foreclose on its Equity Collateral) shall automatically terminate upon the commencement of a Proceeding
involving the Senior Borrower, unless the Proceeding is dismissed in which case the right will be deemed
reinstated from and after such dismissal to the extent the other conditions of this Section 12(a) are satisfied. Notwithstanding the foregoing,
if a Junior Lender abandons its cure efforts during a Non-Monetary Cure Period or Extended Non-Monetary Cure Period or fails to satisfy any of the conditions set forth in
clauses (1), (2), (3), (4) and (5) above during a Non-Monetary Cure Period, then (A) such Junior Lender's cure rights with respect to the applicable
non-monetary default (but not any other non-monetary default) shall immediately terminate and (B) notwithstanding any other Junior Lenders' earlier election not to cure
the applicable non-monetary default, such other Junior Lenders shall be entitled to succeed to all rights under the existing Non-Monetary Cure Period, upon written notice to
the Senior Lender, so long as any such other Junior Lender promptly commences and thereafter diligently pursues its rights against its Separate Collateral and the conditions set forth in
clauses (1), (2), (3), (4) and (5) above are satisfied. 

        (iii)  To
the extent that any Junior Lender or any Qualified Transferee, in accordance with the provisions and conditions of this Agreement, acquires the ownership interests
in Senior Borrower or any Senior Junior Borrower, as applicable, pursuant to a Separate Collateral Enforcement Action, such Junior Lender or such Qualified Transferee shall acquire the same subject to
the Senior Loan and the terms, conditions and provisions of the Senior Loan Documents for the balance of the term thereof (including any extension rights as provided therein), which shall not be
accelerated by Senior Lender solely due to such acquisition and shall remain in full force and effect, provided, that (i) such Junior Lender or
Qualified Transferee shall have caused Senior Borrower and any new Third-Party Obligor to reaffirm their respective obligations under the Senior Loan Documents in writing (subject to such exculpatory
provisions as are set forth therein), and thereafter to perform, all of the terms, conditions and provisions of the Senior Loan Documents on Senior Borrower's part to be performed and (ii) all
defaults under the Senior Loan which remain uncured as of the date of such acquisition have been cured by such Qualified Transferee or waived by Senior Lender except for defaults that are not
susceptible of being cured by such Qualified Transferee; provided, that such defaults which are not susceptible of being cured do not materially impair
the value, use or operation of the Premises taken as a whole, all as determined in the reasonable judgment of Senior Lender. Notwithstanding any contrary or inconsistent provision of this Agreement,
the Senior Loan Documents or the Junior Loan Documents, no acquisition or other fee or similar charge shall be due in connection with such Junior Lender's or such other Qualified Transferee's
acquisition of any interest in Senior Borrower, any Junior Borrower or the Premises as the result of an Equity Collateral Enforcement Action or assignment in lieu of foreclosure or other negotiated
settlement in lieu of any of the foregoing. In addition, to the extent that a Junior Lender or any Qualified Transferee, in accordance with the provisions and conditions of this Agreement, acquires
the ownership interests in such Senior Borrower, pursuant to an Enforcement Action or otherwise during the sixty (60) days prior to the maturity date (or any extended maturity date, as
applicable) of the Senior Loan, such Junior Lender, or such Qualified Transferee shall only be required to deliver a notice of extension of the term of such Senior Loan five (5) Business Days
prior to the maturity date notwithstanding anything to the contrary in the Senior Loan Agreement. 

51

 

  
        (b)    Junior Loan Default.    Prior to accelerating a Junior Loan or commencing any Equity Collateral Enforcement
Action by reason of an Event of Default under the applicable Junior Loan Documents, the Junior Lender holding the Junior Loan that is subject to an Event of Default shall provide written notice of the
default which would permit such Junior Lender to accelerate the applicable Junior Loan or commence an Equity Collateral Enforcement Action to the applicable Subordinate Junior Lenders and any Loan
Pledgees entitled to notice thereof pursuant to Section 16 of this Agreement, whether or not such Junior Lender is obligated to give notice
thereof to the Junior Borrower under such Junior Loan (each, a "Junior Loan Default Notice"). Except in connection with such Junior Borrower's failure
to repay such Junior Loan in full on the maturity date thereof, the Junior Lender holding the Junior Loan that is subject to an Event of Default shall permit the applicable Subordinate Junior Lenders
an opportunity to cure such default in accordance with the provisions of this Section 12. In the event a Junior Borrower fails to repay a Junior
Loan in full on the maturity date thereof, each of the Subordinate Junior Lenders with respect to such Junior Loan shall have the right to purchase such Junior Loan pursuant to the terms, and subject
to the conditions, provided in Section 14(b). Prior to or concurrently with undertaking any curative action with respect to a Junior Loan, a
Junior Lender shall provide the other Junior Lenders with written notice thereof. Each Junior Lender shall keep the applicable Subordinate Junior Lenders reasonably apprised as to the status of any
Equity Collateral Enforcement Action. 

          (i)  Junior Loan Monetary Default.    If the default identified in the Junior Loan Default Notice is a monetary
default relating to (1) any scheduled payment of principal or interest or (2) the payment of any other liquidated sum of money, the Subordinate Junior Lenders shall have until ten
(10) Business Days after the later of (a) the receipt (or deemed receipt) by the applicable Subordinate Junior Lenders of the Junior Loan Default or (b) expiration of the
applicable Senior Junior Borrower's Notice to cure such monetary default (each such cure period, a "Junior Loan Monetary Cure Period");  provided,
however, that in the event a Subordinate Junior Lender elects to cure such monetary default,
such Subordinate Junior Lender hereby agrees (x) to indemnify, defend and hold harmless the applicable Senior Junior Lender for all cost, expenses, losses, liabilities, obligations, damages,
penalties, and disbursements arising under any servicing agreement applicable to the Senior Junior Loan to the extent imposed on, incurred by or asserted against Senior Junior Lender due to or arising
from such Junior Loan Monetary Cure Period, (y) without duplication, to reimburse the applicable Senior Junior Lender for any interest charged by the applicable Senior Junior Lender or the
servicer on any advances for monthly payments of principal and/or interest on the applicable Senior Junior Loan and/or on any Protective Advances during the Junior Loan Monetary Cure Period, and
(z) if the monetary default is not cured within the Junior Loan Monetary Cure Period but is thereafter cured by a Subordinate Junior Lender, to pay the applicable Senior Junior Lender the
excess of interest accruing at the Default Rate (without duplication) over interest accruing at the Interest Rate under the applicable Senior Junior Loan for the number of days beyond the expiration
of such Junior Loan Monetary Cure Period that the default to which such Junior Loan Monetary Cure Period related continued uncured, less any amounts paid by such Subordinate Junior Lender under
(y) above. A Subordinate Junior Lender shall not be required, in order to effect a cure hereunder during the Junior Loan Monetary Cure Period, to pay any late charges or (other than the cure by
a Subordinate Junior Lender of a default in the payment of the applicable Senior Junior Loan in full on the maturity date thereof) any interest at the Default Rate under the applicable Senior Junior
Loan Documents (irrespective of any cure of such default by a Subordinate Junior Lender pursuant to the provisions of this Agreement), and no late charges or interest at the Default Rate shall accrue
against such Subordinate Junior Lender for such period. There shall be no right to cure as hereinabove set forth with respect to monthly scheduled interest and principal payments for a period of more
than six (6) consecutive months (regardless of which Subordinate Junior Lender has cured such monetary default) unless such Subordinate Junior Lender seeking to cure beyond such six 

52

 

(6) month
period has commenced and is continuing to diligently pursue its rights against such Subordinate Junior Lender's Equity Collateral, in which case such Subordinate Junior Lender shall
be entitled to continue curing such monetary defaults involving monthly scheduled interest and principal payments until the occurrence of any voluntary or involuntary Proceeding involving the
applicable Junior Borrower (such additional monetary cure period, a "Junior Loan Extended Monetary Cure Period"). In the event more than one Subordinate
Junior Lender cures any monetary default in accordance with the terms of this Section, the applicable Senior Junior Lender hereby agrees (x) to accept the cure from the junior most Subordinate
Junior Lender and (y) to return to any Senior Subordinate Junior Lender(s) within three (3) Business Days of accepting such cure from the junior most Subordinate Junior Lender any funds
tendered by the Senior Subordinate Junior Lender(s). The cure period for a Subordinate Junior Lender with respect to a monetary default shall run concurrently with the cure period for the other
Subordinate Junior Lenders with respect to such monetary default and in no event sequentially. Notwithstanding the foregoing, if a Subordinate Junior Lender elects to pursue such cure of defaults
involving monthly scheduled debt service payments as set forth above and thereafter either fails to make the required cure payments or fails to diligently pursue its rights against such Subordinate
Junior Lender's Equity Collateral, then notwithstanding the earlier election of the remaining Subordinate Junior Lenders not to cure the defaults involving monthly scheduled debt service payments,
such other Subordinate Junior Lenders shall be entitled to succeed to all such cure rights, upon written notice to the Senior Junior Lender that is the holder of the Senior Junior Loan
that is subject to the Event of Default, so long as such remaining Subordinate Junior Lender promptly commences and thereafter diligently pursues its rights against its Equity Collateral and otherwise
satisfies the provisions of this Section 12(b)(i). If the default referenced in a Junior Loan Default Notice has been cured such that there is no
longer an Event of Default under the applicable Junior Loan Documents, the applicable Subordinate Junior Lenders shall have the same Junior Loan Monetary Cure Period with respect to any future Junior
Loan Default Notice. In the event that the Senior Loan and one or more Senior Junior Loans are concurrently in default, a Subordinate Junior Lender shall have no right to exercise its cure rights with
respect to the Senior Loan under Section 12(a)(i) or (ii) or the Senior Junior Loan(s) under this  Section 12(b)(i)
 or Section 12(b)(ii) below unless such Subordinate Junior Lender is
simultaneously exercising its cure rights with respect to the Senior Loan under Sections 12(a)(i) and/or  (ii) (to the extent that such Subordinate
Junior Lender is permitted to exercise such cure rights under  Sections 12(a)(i) and/or (ii)) and with respect to each such Senior Junior Loan(s) under
this  Section 12(b)(i) above or Section 12(b)(ii) below (to the extent that such Subordinate
Junior Lender is permitted to exercise such cure rights under Sections 12(b)(i) and/or (ii)). 

         (ii)  Junior Loan Non-Monetary Default.    If the default identified in the Junior Loan Default Notice
is of a non-monetary nature, (aa) the applicable Subordinate Junior Lender having the lowest priority shall have fifteen (15) Business Days from the later of (A) the receipt
by it of a Junior Loan Default Notice and (B) the expiration of the applicable Senior Junior Borrower's cure period for such non-monetary default provided in the applicable Senior
Junior Loan Documents, to cure such non-monetary default (such period, the "Initial Junior Loan Non-Monetary Cure Period"); and
(bb) if the applicable Subordinate Junior Lender having the lowest priority elects not to cure such non-monetary default prior to the expiration of the Initial Junior Loan
Non-Monetary Cure Period, the other remaining Subordinate Junior Lenders shall have the right to cure such non-monetary default within five (5) additional Business Days
after such Subordinate Junior Lender receives notice that the next most junior Subordinate Junior Lender failed to cure such non-monetary default (the Initial Junior Loan
Non-Monetary Cure Period or such additional cure period, as applicable, the "Junior Loan Non-Monetary Cure Period");  provided, that (1) except as
provided in the immediately following clause (2), in no event shall the Junior Loan Non-Monetary
Cure Period extend beyond the date that is the later of (A) five (5) Business Days after the 

53

 

Subordinate
Junior Lender with the highest priority with respect to the Senior Junior Loan that is subject to a default has received notice that the Subordinate Junior Lender with the next lower
priority has failed to cure such default and (B) twenty-five (25) Business Days after the expiration of Senior Junior Borrower's cure period, if any, for such
non-monetary default provided in the Senior Junior Loan Documents, to cure such non-monetary default; and (2) if such non-monetary default is susceptible of
cure but cannot reasonably be cured within the applicable Junior Loan Non-Monetary Cure Period and curative action was promptly commenced and is being diligently pursued by a Subordinate
Junior Lender (or with respect to a non-monetary default that is not susceptible of cure, if a Subordinate Junior Lender shall be diligently pursuing the foreclosure of its Equity
Collateral and such non-monetary default does not materially impair the value, use or operation of the applicable Senior Junior Lender's Equity Collateral as reasonably determined by such
Senior Junior Lender), such Subordinate Junior Lender shall be given an additional period of time as is reasonably necessary for such Subordinate Junior Lender in the exercise of due diligence to cure
such non-monetary default (or, in the case of a non-monetary default as described above that is not susceptible of cure, then such Subordinate Junior Lender shall be given an
additional period of time as is reasonably necessary for such Subordinate Junior Lender in the exercise of due diligence to complete the foreclosure of its Equity Collateral) for so long as
(A) such Subordinate Junior Lender makes or causes to be made timely payment of the applicable Senior Junior Borrower's regularly scheduled monthly principal and/or interest payments under the
applicable Senior Junior Loan and any other amounts due under the applicable Senior Junior Loan Documents, (B) such additional period of time does not exceed forty-five
(45) days, unless such non-monetary default is of a nature that cannot be cured within such forty-five (45) days, in which case, such Subordinate Junior Lender
shall have such additional time as is reasonably necessary to cure such non-monetary default, provided that such Subordinate Junior Lender is continuously and diligently pursuing a cure of
such non-monetary default (or, with respect to a non-monetary default that is not susceptible of cure, such Subordinate Junior Lender shall have such additional time as is
reasonably necessary to gain ownership of its Equity Collateral, provided that such Subordinate Junior Lender is continuously and diligently pursuing the ownership of its Equity Collateral and such
non-monetary default does not materially impair the value, use or operation of the applicable Senior Junior Lender's Equity Collateral as reasonably determined by such Senior Junior
Lender), (C) such default is not caused by a Proceeding of the applicable Senior Junior Borrower, and
(D) during such Junior Loan Non-Monetary Cure Period (and any additional period of time provided for above), there is no material impairment to the value, use or operation of the
applicable Senior Junior Lender's Equity Collateral as reasonably determined by such Senior Junior Lender (such additional Junior Loan Non-Monetary Cure Period, an
"Junior Loan Extended Non-Monetary Cure Period"). If a Subordinate Junior Lender has commenced exercising any such cure right during a
Junior Loan Non-Monetary Cure Period and elects not to proceed with such cure, such Junior Lender shall promptly notify the remaining Subordinate Junior Lenders, and each remaining
Subordinate Junior Lender shall be deemed in compliance with the terms hereof if it commences curing such event within five (5) Business Days following receipt of written notice of such
election not to proceed with such cure by the Junior Lender that precedes it in priority of cure right pursuant to this Section 12(b)(ii) and
otherwise complies with the provision of the immediately preceding sentence. The Junior Loan Non-Monetary Cure Period and any additional cure period granted hereunder to a Subordinate
Junior Lender electing to cure the non-monetary default (including, with respect to a non-monetary default that is not susceptible of cure, any additional time as is reasonably
necessary for a Subordinate Junior Lender to foreclose on its Equity Collateral) shall automatically terminate upon the bankruptcy (or similar insolvency) of Senior Borrower or any applicable Senior
Junior Borrower. In the event that the Senior Loan and one or more Senior Junior Loans are concurrently in default, a Subordinate Junior Lender shall have no right to exercise its cure rights with
respect to the Senior Loan under Section 12(a) or the Senior Junior Loan(s) under  Section 12(b)(i) above or this Section 12(b)(ii)

54

 

unless
such Subordinate Junior Lender is simultaneously exercising its cure rights with respect to the Senior Loan under Sections 12(a)(i) and/or  (ii) (to
the extent that such Subordinate Junior Lender is permitted to exercise such cure rights under  Sections 12(a)(i) and/or (ii)) and with respect to each
such Senior Junior Loan(s) under  Section 12(b)(i) above or this Section 12(b)(ii) (to the extent that such Subordinate
Junior Lender is permitted to exercise such cure rights under Sections 12(b)(i) and/or (ii)). The
Junior Loan Non-Monetary Cure Period and any additional cure period granted hereunder to any Subordinate Junior Lender electing to cure a non-monetary default of any applicable
Senior Junior Borrower (including, with respect to a non-monetary default that is not susceptible of cure, any additional time as is reasonably necessary for a Subordinate Junior Lender to
foreclose on its Equity Collateral) shall automatically terminate upon the bankruptcy (or similar insolvency) of such applicable Senior Junior Borrower. 

        (c)    Cash Management.    So long as the South Carolina Management Agreements are in place and so long as no Event of
Default shall have occurred and be continuing under the Senior Loan Documents, subject to the cure rights of the Junior Lenders hereunder, all funds held and applied pursuant to the Senior Loan Cash
Management Agreement and Senior Loan Agreement, shall continue to be applied in the manner required thereunder prior to the occurrence of an Event of Default under the Senior Loan. So long as no Event
of Default shall have occurred and be continuing under the First Mezzanine Loan Documents, subject to the cure rights of the Junior Lenders hereunder, all funds held and applied pursuant to the First
Mezzanine Cash Management Agreement and First Mezzanine Loan Agreement, shall continue to be applied pursuant thereto in the manner required thereunder prior to the occurrence of an Event of Default
under the First Mezzanine Loan Documents. So long as no Event of Default shall have occurred and be continuing under the Second Mezzanine Loan Documents, subject to the cure rights of the Junior
Lenders hereunder, all funds held and applied pursuant to the Second Mezzanine Cash Management Agreement and Second Mezzanine Loan Agreement, shall continue to be applied in the manner required
thereunder prior to the occurrence of an Event of Default under the Second Mezzanine Loan Documents. So long as no Event of Default shall have
occurred and be continuing under the Third Mezzanine Loan Documents, subject to the cure rights of the Junior Lenders hereunder, all funds held and applied pursuant to the Third Mezzanine Cash
Management Agreement and Third Mezzanine Loan Agreement, shall continue to be applied in the manner required thereunder prior to the occurrence of an Event of Default under the Third Mezzanine Loan
Documents. So long as no Event of Default shall have occurred and be continuing under the Fourth Mezzanine Loan Documents, subject to the cure rights of the Junior Lenders hereunder, all funds held
and applied pursuant to the Fourth Mezzanine Cash Management Agreement and Fourth Mezzanine Loan Agreement, shall continue to be applied in the manner required thereunder prior to the occurrence of an
Event of Default under the Fourth Mezzanine Loan Documents. So long as no Event of Default shall have occurred and be continuing under the Fifth Mezzanine Loan Documents, subject to the cure rights of
the Junior Lenders hereunder, all funds held and applied pursuant to the Fifth Mezzanine Cash Management Agreement and Fifth Mezzanine Loan Agreement, shall continue to be applied in the manner
required thereunder prior to the occurrence of an Event of Default under the Fifth Mezzanine Loan Documents. So long as no Event of Default shall have occurred and be continuing under the Sixth
Mezzanine Loan Documents, subject to the cure rights of the Junior Lenders hereunder, all funds held and applied pursuant to the Sixth Mezzanine Cash Management Agreement and Sixth Mezzanine Loan
Agreement, shall continue to be applied in the manner required thereunder prior to the occurrence of an Event of Default under the Sixth Mezzanine Loan Documents. 

        Section 13.    Replacement of Manager.    

        Senior
Lender and each Junior Lender hereby consents to each Junior Lenders' right, under the circumstances set forth in the applicable Junior Loan Documents, to cause the termination of
any manager of the Premises, and the exercise of such right (and any manager replacement right exercised 

55

 

pursuant
to the terms of this Section 13 below) shall not (in and of itself) permit the Senior Lender and the other Junior Lenders to declare an
Event of Default as defined in the Senior Loan Documents or the applicable Junior Loan Documents or take any Enforcement Action or Equity Collateral Enforcement Action. In the event Senior Lender and
one or more Junior Lenders shall have the right to so terminate any manager of the Premises, and Senior Lender shall fail to exercise such rights within ten (10) Business days, the most junior
Junior Lender may exercise such rights without the consent of the Senior Lender; provided such exercise by the most Junior Lender may be superseded by
any subsequent exercise of such rights by Senior Lender in accordance to the Senior Loan Documents. If Senor Lender does not exercise its superior termination rights, the most junior Junior Lender,
having terminated the property manager of the Premises pursuant to the most junior Junior Loan Documents, shall have the right to select, or cause the selection, of a replacement property manager,
asset manager or leasing agent, as applicable, for the Premises, which replacement manager, asset manager and/or leasing agent for the Premises, shall be subject to Senior Lender's reasonable approval
and the applicable terms and provisions of the Senior Loan Documents, and, if any Certificates are then outstanding, be subject to a Rating Agency Confirmation, and shall be a Qualified Manager.
Notwithstanding anything in this Section 13 to the contrary, if an Event of Default under the Senior Loan then is continuing, Senior Lender shall
have the sole right to select any replacement manager, asset manager and/or leasing agent, as applicable, which is a Qualified Manager and, if any Certificates are then outstanding, is subject to a
Rating Agency Confirmation, whether or not a new manager or agent was retained by the most junior Junior Lender; provided, Senior Lender agrees to
consult with the Junior Lenders prior to making any such election; and provided, further, that without
the consent of each of the Junior Lenders which is not an Affiliate of the Senior Borrower, the Senior Lender shall not engage a replacement manager that is an Affiliate of the Senior Borrower. 

        Section 14.    Right to Purchase Senior Loan and the Senior Junior Loans.    (a) At any time after
(i) the occurrence and during the continuance of a monetary Event of Default under the Senior Loan or non-monetary Event of Default under the Senior Loan which is subject to an
Enforcement Action or (ii) if the Senior Loan is a "specially serviced mortgage loan" under the applicable trust and servicing agreement or pooling and servicing agreement related thereto as a
result of a monetary Event of Default or material non-monetary Event of Default occurring under the Senior Loan (each of the foregoing, a "Purchase Option
Event"), upon ten (10) Business Days' prior written notice to Senior Lender (the "Purchase Notice"), a Junior Lender
(and, if permitted by the applicable participation agreement, a Junior Lenders' participant) shall have the right to purchase, in whole, but not in part, the Senior Loan for a price equal to the sum
of (without duplication) the outstanding principal balance of the Senior Loan, together with all accrued interest and other amounts due thereon (excluding prepayment fees or premiums that would be due
if Senior Borrower were prepaying the Senior Loan at the time of such purchase in violation of the prohibition against voluntary prepayment, exit fees, yield maintenance premiums, spread maintenance
premiums, default interest and late charges, but including, without limitation, post-petition interest, any unreimbursed Protective Advances made by Senior Lender or any servicer and any
interest charged by Senior Lender or any servicer on any advances for monthly payments of principal and/or interest on the Senior Loan and/or on any Protective Advances), and including all costs and
expenses (including reasonable legal fees and expenses) actually incurred by Senior Lender in enforcing the terms of the Senior Loan Documents, and any fees and expenses payable or reimbursable to any
servicer, trustee or fiscal agent; provided that any such fees and expenses are not duplicative of any other fees and expenses otherwise payable by a
Junior Lender to Senior Lender under this Section 14, including, without limitation, special servicing to any special servicer under the
applicable pooling and servicing agreement, interest on advances made by any of them (but excluding any workout or liquidation fees if the Senior Loan is purchased within ninety (90) days of
the Purchase Option Event) whether or not any such entity may be deemed to be Senior Lender (collectively, the "Senior Loan Purchase Price"). In the
event that any Junior Lender elects to purchase the Senior Loan pursuant to this Section 14(a), the Subordinate Junior Lender with the lowest 

56

 

priority
with respect to the other Junior Lenders that have elected to purchase the Senior Loan shall have the exclusive right to so purchase the Senior Loan,  provided that such Subordinate Junior Lender shall
also be required to concurrently purchase each of the applicable Senior Junior Loans from the Senior
Junior Lenders holding such applicable Senior Junior Loans (regardless of whether such Senior Junior Lenders were among the Junior Lenders which had elected to purchase the Senior Loan). Such purchase
of each of the Senior Junior Loans shall be for a price equal to the sum of (without duplication) the outstanding principal balance of the Senior Junior Loan, together with all accrued interest and
other amounts due thereon (including, without limitation, advances made by Senior Junior Lender or any servicer and post-petition interest), any unreimbursed Protective Advances made by
such Senior Junior Lender or any servicer), including all costs and expenses (including reasonable legal fees and expenses) actually incurred by such Senior Junior Lender in enforcing the terms of the
applicable Senior Junior Loan Documents, any fees and expenses payable or reimbursable to any servicer (provided that any such fees and expenses are not
duplicative of any default interest, late charges or other fees and expenses otherwise payable by a Subordinate Junior Lender to such Senior Junior Lender under this  Section 14); excluding any
workout or liquidation fees, prepayment fees or premiums that would be due if the applicable Senior Junior Borrower
were prepaying the applicable Senior Junior Loan at the time of such purchase in violation of the prohibition against voluntary prepayment, exit fees, yield maintenance premiums, spread maintenance
premiums, late charges and default interest (such price as to each such Senior Junior Loan, the "Senior Junior Loan Purchase Price"). A Subordinate
Junior Lender may not close the purchase of the Senior Loan without concurrently closing the purchase of the applicable Senior Junior Loans in accordance with the terms of this paragraph. Prior to
electing to purchase the Senior Loan and/or any Senior
Junior Loan, a Subordinate Junior Lender shall have the right to obtain from Senior Lender and each Senior Junior Lender a good faith estimate of the Senior Loan Purchase Price and Senior Junior Loan
Purchase Price, respectively. If any Subordinate Junior Lender which has elected to purchase the Senior Loan fails to complete such purchase within ten (10) Business Days after delivery of a
Purchase Notice or fails to concurrently purchase the applicable Senior Junior Loans as required hereunder, then such Purchase Notice shall be deemed invalid, such defaulting Subordinate Junior Lender
shall cease to have any right to purchase the Senior Loan (and any applicable Senior Junior Loan) in connection with the applicable Purchase Option Event and the remaining Junior Lenders shall
thereafter be entitled to exercise their purchase rights under, and in accordance with, this Section 14(a). Senior Lender shall close the sale of
the Senior Loan to the applicable Junior Lender on the date set forth in the Senior Purchase Notice subject to the terms and conditions of this Agreement. Each Junior Lender agrees that the sale of
the Senior Loan shall, if the Senior Loan is included in a Securitization at such time, comply with the requirements of the pooling and servicing agreement pursuant to which the Certificates were
issued and that all attorney's fees related to the preparation and delivery of the assignment of the Senior Loan shall be paid by the applicable Junior Lender. Concurrently with payment to Senior
Lender of the Senior Loan Purchase Price, Senior Lender shall deliver or cause to be delivered to the Junior Lender exercising the purchase right hereunder all Senior Loan Documents held by or on
behalf of Senior Lender and will execute in favor of the Junior Lender or its designee exercising the purchase right hereunder, assignment documentation, in form and substance reasonably acceptable to
Senior Lender and such Junior Lender, at the sole cost and expense of such Junior Lender to assign the Senior Loan and its rights under the Senior Loan Documents (without recourse, representations or
warranties, except for representations as to the outstanding balance of the Senior Loan, the power and authority of the Senior Lender to transfer the Senior Loan and as to Senior Lender's ownership
and not having previously assigned, transferred, participated or encumbered its rights in the Senior Loan unless such participation or encumbrance will be released prior to the transfer). Concurrently
with payment to each of Senior Junior Lenders of the applicable Senior Junior Loan Purchase Price for the Senior Junior Loan held by each such Senior Junior Lender, each applicable Senior Junior
Lender shall deliver or cause to be delivered to the Subordinate Junior Lender exercising the purchase right hereunder all Senior Junior Loan Documents held by or on behalf of such Senior Junior
Lender and will execute in 

57

 

favor
of such Subordinate Junior Lender or its designee assignment documentation, in form and substance reasonably acceptable to such Subordinate Junior Lender, at the sole cost and expense of such
Subordinate Junior Lender, to assign such Senior Junior Lender's Senior Junior Loan and its rights under the related Senior Junior Loan Documents (without recourse, representations or warranties,
except for representations as to the outstanding balance of such Senior Junior Loan, the power and authority of the Senior Junior Lender to transfer the Senior Junior Loan and as to such Senior Junior
Lender's ownership and not having previously assigned, transferred, participated or encumbered its rights in such Senior Junior Loan unless such participation or encumbrance will be released prior to
the transfer). Following the occurrence of a Purchase Option Event, each Junior Lender shall keep the other Junior Lenders informed as to such Junior Lender's intention to exercise any of its
respective rights in connection with the Purchase Option Event. 

        (b)   The
right of each Junior Lender to purchase the Senior Loan shall automatically terminate (i) ten (10) Business Days after receipt of notice that a more
senior Senior Junior Lender has elected to exercise the right to purchase the Senior Loan (unless the more junior Junior Lender shall have given written notice to such Senior Junior Lender to purchase
the Senior Loan prior to the expiration of such ten (10) Business Day period), (ii) upon a transfer of the Premises by foreclosure sale, sale by power of sale or delivery of a deed in
lieu of foreclosure, or (iii) with respect to a specific Purchase Option Event, if such Purchase Option Event ever ceases to exist; provided,  however,
that in no event shall any Junior Lender have less than thirty (30) days to deliver a Purchase Notice following notice by Senior Lender
to such Junior Lender of the occurrence of the related Purchase Option Event, except pursuant to the terms of clause (A)(iii) of this sentence.
Notwithstanding the foregoing sentence, if Borrower offers to deliver or actually delivers to Senior Lender a deed in lieu of foreclosure to the Premises (each, a "Deed in
Lieu"), Senior Lender shall provide Junior Lenders not less than ten (10) Business Days written notice prior to accepting a Deed in Lieu to the Premises, and if any
Junior Lender shall deliver a Purchase Notice to Senior Lender prior to the expiration of such ten (10) Business Day period, Senior Lender shall not accept the Deed in Lieu to the Premises,
provided that the applicable Junior Lender pays the Senior Loan Purchase Price to Senior Lender and acquires the Senior Loan (and the Senior Junior Loans at the applicable Senior Junior Loan Purchase
Price) within such ten (10) Business Day period from the delivery of such Purchase Notice, in which case all costs and expenses (including all transfer taxes) in connection therewith shall be
paid by the applicable Junior Lender. 

        (c)   If
a Junior Loan has been accelerated, any Equity Collateral Enforcement Action has been commenced under the Junior Loan Documents for a Junior Loan, a Proceeding has
been commenced against a Junior Borrower under such Junior Loan or a Subordinate Junior Lender has cured one or more defaults on the part of any Junior Borrower under the Senior Junior Loan Documents
pursuant to Section 12 hereof and, but for such cure, the Senior Junior Loan would be considered a "specially serviced mortgage loan" under the
applicable pooling and servicing agreement if it were the Senior Loan (a "Junior Loan Purchase Option Event"), the Junior Lender holding such Junior
Loan (such Junior Loan, the "Optioned Junior Loan" and such Junior Lender, the "Optioned Junior Lender")
shall provide prompt written notice of the same to the applicable Subordinate Junior Lenders, and upon ten (10) Business Days' prior written notice (the "Junior Purchase
Notice") to the Senior Junior Lender holding the Optioned Junior Loan that is subject to the applicable Junior Loan Purchase Option Event, the applicable Subordinate Junior
Lenders (and, if permitted by the applicable participation agreement, Optioned Junior Lenders' participant) shall have the right to purchase, in whole but not in part, the applicable Optioned Junior
Loan for the Senior Junior Loan Purchase Price. Notwithstanding the foregoing but subject to the terms of the next to last sentence of this  Section 14(c), the failure of a Senior Junior Lender to
provide notice to any applicable Subordinate Junior Lender of the occurrence of a Junior
Loan Purchase Option Event shall have no adverse effect on such Junior Lender. In the event that more than one Subordinate Junior Lender elects to purchase an Optioned Junior Loan pursuant to this  Section 14(c)
, the Subordinate Junior Lender with the lowest priority with 

58

 

respect
to the other Subordinate Junior Lenders that have elected to purchase such Optioned Junior Loan shall have the exclusive right to so purchase such Optioned Junior Loan, provided that such
Subordinate Junior Lender shall also be required to concurrently purchase each of the other Subordinate Junior Loans that constitute, as to such purchasing Subordinate Junior Lender, Senior Junior
Loans from the Junior Lenders holding such other Subordinate Junior Loans that so constitute Senior Junior Loans that are also Subordinate Junior Loans in respect of the Optioned Junior Loan (such
other Subordinate Junior Loans, the "Additional Covered Junior Loans") in each case for a price equal to the applicable Senior Junior Loan Purchase
Price. If any Subordinate Junior Lender which has elected to purchase the Optioned Junior Loan that is subject to the applicable Junior Loan Purchase Option Event fails to complete such purchase
within ten (10) Business Days of delivery of a Junior Purchase Notice or fails to concurrently purchase the applicable Additional Covered Junior Loans as required hereunder, then such Junior
Purchase Notice shall be deemed invalid, such defaulting Subordinate Junior Lender shall cease to have any right to purchase the Optioned Junior Loan in connection with the applicable Junior Loan
Purchase Option Event and the other Subordinate Junior Lenders shall thereafter be entitled to exercise their purchase rights under, and in accordance with, this  Section 14(c). Concurrently with
payment to the applicable Senior Junior Lenders of the applicable Senior Junior Loan Purchase Price for the
Optioned Junior Loan or Additional Covered Junior Loan, as the case may be, held by such Senior Junior Lender, each applicable Senior Junior Lender shall deliver or cause to be delivered to the
Subordinate Junior Lender exercising the purchase right hereunder all Senior Junior Loan Documents held by or on behalf of such Senior Junior Lender and will execute in favor of such Subordinate
Junior Lender or its designee assignment documentation, in form and substance reasonably acceptable to such Subordinate Junior Lender, at the sole cost and expense of such Subordinate Junior Lender,
to assign such Senior Junior Lender's Optioned Junior Loan, or Additional Covered Junior Loan, as the case may be, and its rights under the related Senior Junior Loan Documents (without recourse,
representations or warranties, except for representations as to the outstanding balance of such Optioned Junior Loan or Additional Covered Junior Loan, as the case may be, and as to such Senior Junior
Lender's ownership and not having previously assigned, transferred, participated or encumbered its rights in such Optioned Junior Loan or Additional Covered Junior Loan, as the case may be, unless
such participation or encumbrance will be released prior to the transfer). The right of any Subordinate Junior Lender to purchase the Optioned Junior Loan shall
automatically terminate (x) upon a transfer or sale of the Equity Collateral covered by the Senior Junior Loan Documents that secure the Optioned Junior Loan, pursuant to any Equity Collateral
Enforcement Action where the transferee is not Senior Borrower (or any Affiliate thereof), or (y) with respect to a specific Junior Loan Purchase Option Event, if such Junior Loan Purchase
Option Event ceases to exist (including, if the applicable Senior Junior Lender terminated its Equity Collateral Enforcement Action); provided,  however,
that in no event shall any Subordinate Junior Lender have less than thirty (30) days, following notice by the applicable Senior Junior
Lender to such Subordinate Junior Lender of the occurrence of a Junior Loan Purchase Option Event, to elect to purchase the Optioned Junior Loan, except if such period for such election to purchase is
terminated pursuant to the terms of foregoing clause (x) or (y). Notwithstanding the foregoing sentence, if title is transferred to any Subordinate Junior Lender less than ten (10) days
after the acceleration of the applicable Senior Junior Loan, the applicable Subordinate Junior Lenders shall have a ten (10) day period to deliver the applicable Senior Junior Loan Purchase
Notice to the applicable Senior Junior Lender with the obligation to purchase the applicable Equity Collateral within ten (10) days of the delivery of such Senior Junior Loan Purchase Notice at
the applicable Senior Junior Loan Purchase Price, in which case all costs and expenses (including all transfer taxes) in connection therewith shall be paid by the applicable Subordinate Junior Lender. 

        (d)   Senior
Lender and each Junior Lender covenants not to, and not to permit any Affiliate to, enter any agreement with Borrower, any Junior Borrower or any Affiliate
thereof to purchase the Senior Loan or any Junior Loan pursuant to this Section or in connection with any refinancing of the 

59

 

Senior
Loan or any Junior Loan in any manner designed to avoid or circumvent the provisions of the Senior Loan Documents or any of the Junior Loan Documents which require the payment of any liquidated
damage amount, acceleration prepayment premium, a prepayment fee, premiums or yield maintenance charge in connection with a prepayment of the Senior Loan or a Junior Loan. Notwithstanding anything to
the contrary contained herein, the ten (10) Business Day period following delivery of the Purchase Notice during which a purchasing Junior Lender is required to consummate such purchase, may be
extended for an additional ten (10) Business Days upon payment to the Senior Lender of a nonrefundable deposit in an amount equal to ten percent (10%) of the Senior Loan Purchase Price. 

        Section 15.    Additional Understandings.    For as long any Junior Loan remains outstanding: 

        (a)    Notices of Transfer, etc.    In the event of a request by Senior Borrower or any Junior Borrower for Senior
Lender's or any Junior Lender's consent to either (i) the sale or Transfer of all or any material portion of the Premises or any interest in Senior Borrower or any Junior Borrower, or
(ii) the granting of a further mortgage, deed of trust or similar encumbrance against the Premises or any of the Equity Collateral or any incurrence of additional indebtedness, such Person from
whom such consent has been requested shall, as long as no Event of Default has occurred under the Senior Loan or the Junior Loan held by such Person, if such Person has the right to consent under the
Senior Loan Documents or Junior Loan Documents held by such Person or such consent is otherwise requested from such Person, obtain the prior written consent of the Junior Lenders or the applicable
Subordinate Junior Lenders, as the case may be, prior to such Person granting its consent or agreement thereto (for the purposes of this  Section 15(a), each Junior Lender is to be reasonable to the
extent Senior Lender must be
reasonable, but nothing contained above is intended to reduce or limit the rights of each Junior Lender under its respective Junior Loan Documents). Nothing herein shall require any Junior Lender to
consent to, or waive its rights with respect to, any Transfer of the Premises or any interest therein (including, without limitation, the Separate Collateral). 

        (b)    Annual Budget.    The most Junior Lender shall have the right to receive and reasonably approve the Quarterly
CapEx Budget in accordance with the terms of its Junior Loan Documents during a Trigger Period. 

        (c)    Reserves and Escrows.    If (i) Senior Lender waives any reserves or escrow accounts required under the
Senior Loan Documents which reserves or escrow accounts are also required under the most Senior Junior Loan Documents, then the most Senior Junior Lender may require that its Junior Borrower
(x) deposit such amounts that would have been deposited into any reserves or escrow accounts under the Senior Loan to be transferred to and deposited with such Senior Junior Lender and
(y) enter into a cash management agreement with such Senior Junior Lender substantially similar to the arrangement entered into by Borrower with Senior Lender at the closing of the Senior Loan
and (ii) if any Senior Junior Lender waives any reserves or escrow accounts required under its applicable Senior Junior Loan Documents which reserves or escrow accounts are also required under
the most senior Subordinate Junior Loan Documents, then the most senior Subordinate Junior Lender may require that its Junior Borrower (x) deposit such amounts that would have been deposited
into any reserves or escrow accounts under the Senior Loan or the applicable Senior Junior Loan to be transferred to and deposited with such Subordinate Junior Lender and (y) enter into a cash
management agreement with such Subordinate Junior Lender substantially similar to the arrangement entered into by Borrower with the Senior Lender or by the Senior Junior Borrower with such Senior
Junior Lender. 

        (d)    Consent Rights of Junior Lenders.    If any of the Junior Loan Documents contain any provision or requirement
that a Junior Lender's consent or approval be obtained for any act or determination by Borrower or its respective Junior Borrower in connection with the leasing of the Premises or alterations to the
Premises, to the extent that such consent or approval is also required by 

60

 

Senior
Lender under the Senior Loan Documents, each Junior Lender hereby agrees that it shall first advise Senior Lender whether such Junior Lender objects to the requested consent or approval within
five (5) Business Days after its receipt of (i) a written request for a consent or approval from the applicable Junior Borrower and (ii) delivery of all required documents and
information necessary to adequately and completely evaluate such request. Senior Lender shall consult with each Junior Lender with respect to any such consent or approval right of such Junior Lender.
Each Junior Lender having such consent rights shall not unreasonably withhold its consent to such lease or alteration if Senior Lender (A) is deemed to have approved such lease or alteration
under the Senior Loan Documents or (B) reasonably approves such lease or alteration provided, with respect to a lease, the lease is on market terms and, with respect to an alteration, the
alteration is necessary to maintain the Premises in good order and repair as required by the Senior Loan Documents. 

        (e)    Permitted Refinancing.    Each Junior Lender will not modify the provisions of its respective Junior Loan
Agreement with respect to permitted refinancing of the Senior Loan without Senior Lender's prior written consent (which consent shall not be unreasonably withheld or delayed) or with respect to
permitted refinancing of any Senior Junior Loan without the applicable Senior Junior Lender's prior written consent, not to be unreasonably withheld or delayed. 

        (f)    Marshalling of Assets.    Each Junior Lender hereby waives any equitable right it may have to require that
Senior Lender marshal any assets of Senior Borrower in favor of such Junior Lender, to require the separate sales of any portion of the Premises or to require that Senior Lender exhaust its remedies
against any portion of the Premises. Each Junior Lender agrees that, except with respect to the enforcement of its remedies under its applicable Junior Loan Documents permitted hereunder (including
the foreclosure and acquisition of its applicable Equity Collateral through an Enforcement Action), prior to the satisfaction of all Senior Loan Liabilities it shall not acquire, by subrogation or
otherwise, any lien, estate, right or other interest in any portion of the Premises or any other collateral now securing the Senior Loan or the proceeds therefrom that is or may be prior to, or of
equal priority to, any of the Senior Loan Documents or the liens, rights, estates and interests created thereby. 

        (g)    Requests for Disbursements.    Senior Lender hereby agrees to promptly (x) notify each Junior Lender of
any requests by Senior Borrower for disbursements of funds from the Reserve Funds (as defined in the Senior Loan Agreement) or a release of Net Proceeds (as defined in the Senior Loan Documents) and
(y) provide each Junior Lender with any documentation delivered by Senior Borrower to Senior Lender with respect to any such request by Senior Borrower for a disbursement of funds from the
Reserve Funds or release of Net Proceeds (provided that in no event shall Senior Lender have any liability for a failure by Senior Lender to provide such notice or documentation to any Junior Lender,
and no such failure shall constitute a default hereunder). 

        (h)    Cash Management.    (i) Senior Lender hereby agrees to deliver to each Junior Lender a copy of any
notice sent or received by Senior Lender with respect to the Senior Loan Cash Management Agreement, including, without limitation, each disbursement instruction delivered under such Senior Loan Cash
Management Agreement. Such copies shall be delivered to each Junior Lender concurrently with the delivery of such notices to the Agent under the Senior Loan Cash Management Agreement or promptly after
receipt thereof by Senior Lender, as the case may be. Senior Lender may elect to change the Agent under the Senior Loan Cash Management Agreement provided that Senior Lender shall give each Junior
Lender not less than two (2) Business Days' prior written notice of any such change. Senior Lender shall cause the Senior Loan Cash Management Agreement to provide that the Agent thereunder
shall provide each Junior Lender with access to information regarding the Cash Management Account (as such term is defined in the Senior Loan Cash Management Agreement). 

         (ii)  Each
Senior Junior Lender hereby agrees to deliver to the applicable Subordinate Junior Lenders a copy of any notice sent or received by such Senior Junior Lender with
respect to its applicable Junior Loan Cash Management Agreement, including, without limitation, each 

61

 

disbursement
instruction delivered under such Senior Junior Loan Cash Management Agreement. Such copies shall be delivered to each Subordinate Junior Lender concurrently with the delivery of such
notices to the Agent under the applicable Senior Junior Loan Cash Management Agreement. A Senior Junior Lender may elect to change the Agent under its applicable Senior Junior Loan Cash Management
Agreement, provided that such Senior Junior Lender shall give each applicable Subordinate Junior Lender not less than two (2) Business Days'
prior written notice of any such change. Each Senior Junior Lender shall cause its applicable Senior Junior Loan Cash Management Agreement to provide that the Agent thereunder shall provide each
applicable Subordinate Junior Lender with access to information regarding the applicable Cash Management Account (as such term is defined in the applicable Senior Junior Loan Cash Management
Agreement). 

        (i)    Notices of Default.    (i) Each Junior Lender shall give Senior Lender and each other Junior Lender
notice of any Event of Default, acceleration of its applicable Junior Loan and the commencement of any Equity Collateral Enforcement Action under its Junior Loan Documents and, simultaneously with
giving such notices to its Junior Borrower, copies of notices given to its Junior Borrower of events that with the passage of time and failure to cure, would result in the occurrence of a "Default" or
"Event of Default" under its respective Junior Loan Documents. 

         (ii)  Senior
Lender shall give each Junior Lender written notice of any Event of Default, acceleration of the Senior Loan, transfer of the Senior Loan to "special servicing"
and the commencement of an Enforcement Action under the Senior Loan Documents and, simultaneously with giving such notices to Senior Borrower, copies of notices given to Senior Borrower of events that
with the passage of time and failure to cure, would result in the occurrence of a "Default" or "Event of Default" under the Senior Loan Documents. 

        (j)    Cooperation with Senior Lender.    At the request of Senior Lender, each Junior Lender shall use reasonable
efforts, at Senior Lender's expense, to satisfy, and to cooperate with Senior Lender in attempting to cause Senior Borrower, each Senior Junior Borrower to satisfy, the market standards to which
Senior Lender customarily adheres or which may be reasonably required in the marketplace or by the Rating Agencies in connection with the Securitization of the Senior Loan, including, entering into
(or consenting to, as applicable) any modifications to this Agreement or the Senior Loan Documents or the Junior Loan Documents, and to cooperate with Senior Lender in attempting to cause Senior
Borrower and the Junior Borrowers to execute such modifications to the Senior Loan Documents and the applicable Junior Loan Documents, in any such case, as may be reasonably requested by the Rating
Agencies to effect the Securitization; provided, however, a Junior Lender shall not be required to
modify or amend this Agreement or any Senior Loan Documents or its respective Junior Loan Documents (or consent to such modification of the Senior Loan Documents), if such modification or amendment
would (1) materially increase its respective Junior Borrower's obligations under its Junior Loan Documents or materially decrease such Junior Lender's rights, remedies or protections
thereunder, (2) change the economic terms allocable to the Junior Loans (including, without limitation, the basis upon which any reserve requirement is triggered or suspended) under the Senior
Loan Documents and Junior Loan Documents), or (3) otherwise, in any Junior Lender's judgment, have any material adverse impact on such Junior Lender or its Junior Loan. In connection with any
Securitization, each Junior Lender agrees to provide for inclusion in any disclosure document relating to the related Securitization such information concerning such Junior Lender as the Senior Lender
reasonably determines to be necessary or appropriate. Subject to the foregoing qualifications in clauses (1)-(3) in the foregoing sentence, each
Junior Lender agrees that if the Senior Loan is to be included as an asset of a Securitization, such Junior Lender shall, at Senior Lender's request and expense, cooperate with the reasonable requests
of each Rating Agency and Senior Lender in connection with the Securitization. 

62

 

  
        (k)    LIBOR Determination Notices.    Senior Lender shall provide each Junior Lender with a copy of its
determination
of the LIBOR Rate applicable to each Interest Period under the Senior Loan promptly after determination thereof. 

        (l)    Books and Records.    Upon inspection of the books, records or Premises of Borrower by Senior Lender pursuant
to the terms of the Senior Loan Documents, Senior Lender shall, upon request of any Junior Lender, take action to encourage Senior Borrower to provide such Junior Lender access for its own inspection
of such books, records or the Premises. Upon any inspection of the books, records or the Premises of any Junior Borrower by a Junior Lender, pursuant to the terms of its respective Junior Loan
Documents, such Junior Lender shall, upon written request of Senior Lender and any other Junior Lender, take action to encourage its Junior Borrower to reasonably cooperate to provide Senior Lender
and such other requesting Junior Lender access for its own inspection of such books, records or the Premises. The provisions of this  Section 15(l) shall not be interpreted to limit in any way the
rights in favor of any Junior Lender under its respective Junior Loan Documents. 

        (m)    Resizing.    In connection with any Securitization of the Senior Loan, Senior Lender may notify the Junior
Lenders that it intends to purchase a portion of certain of the Junior Loans and convert such purchased portion of such Junior Loans into the Senior Loan and, if applicable, the more senior Junior
Loans, or require certain of the Junior Lenders to purchase a portion of the Senior Loan and convert such purchased portion into one or more of the Junior Loans (a "Resizing
Notice") which purchase shall occur within ten (10) Business Days of the Resizing Notice (the "Resizing Date"). Any such
resizing shall have no material adverse effect on any of the other Junior Loans and shall not change the initial weighted average interest rate of the Senior Loan and the Junior Loans. Provided that
no Event of Default exists under the Senior Loan or the affected Junior Loans, the affected Junior Lenders shall either (i) sell a portion of their Junior Loans to Senior Lender and, if
applicable to the more senior Junior Lenders, or (ii) purchase a portion of the Senior Loan from Senior Lender, and if applicable, a portion of the more senior Junior Loans (the
"Resized Components"). The Resizing Notice shall set forth: (1) the effective date of such resizing, (2) the principal amount of the
Junior Loans to be purchased and converted into the Senior Loan, and, if applicable, into the more senior Junior Loans, or the principal amount of the Senior Loan and, if applicable, the more senior
Junior Loans, to be purchased and converted into the affected Junior Loans, (3) the adjusted balance of the affected Junior Loans after such purchase(s) and conversion, (4) the adjusted
Senior Loan balance after such purchase and conversion, (5) the adjusted Spread of the affected Junior Loans after such purchase and conversion, (6) the adjusted Spread of the Senior
Loan after such purchase and conversion, and (7) the adjusted amortization schedules, if applicable, and release prices (both of which shall be allocated pro
rata between the Senior Loan and the affected Junior Loans), as between the Senior Loan and the affected Junior Loans. Senior Lender and each Junior Lender each agrees that, at
Senior Lender's expense, the Senior Loan Documents and the applicable Junior Loan Documents shall each be modified accordingly in order to reflect the terms set forth in the Resizing Notice (on or
before the Resizing Date), which shall include (as applicable), among other things, modifications to the Title
Insurance Policy, Interest Rate Cap Agreement, UCC Title Insurance Policy, and opinion letters delivered in connection with the Senior Loan and the affected Junior Loans, which modification documents
shall be subject to the approval of the Senior Lender and the other Junior Lenders, which approval shall not be unreasonably withheld or delayed. True and correct copies of such modified documents
shall be delivered to each of the Junior Lenders promptly after execution thereof. Notwithstanding anything to the contrary contained in this  clause (m), any resizing to be effectuated pursuant to
this clause (m) shall only affect those of
the Junior Loans which at such time continue to be owned by the originating Junior Lender (and originating Junior Noteholders) of each such Junior Loan. 

        (n)    Uncross of Properties.    Senior Lender or its Affiliates may remove certain Individual Properties (each, an
"Affected Property") in connection with or after a Securitization of the Senior 

63

 

Loan; provided that (i) each Junior Lender shall have approved of the structure and the documentation necessary to effectuate the uncross of any
Affected Property, and (ii) Senior Lender or its Affiliates and each Junior Lender shall mutually agree as to the cross-collateralization and cross-default of the debt allocated to each
Affected Property so removed from the Securitization all at Senior Lender's sole cost and expense (including reasonable attorneys' fees). Notwithstanding the foregoing, the obligations and rights of
Senior Lender set forth in this Section 15(n) are limited to the initial named Senior Lender hereunder and the trustee for any Securitization of
the Senior Loan, and no other successors or assigns of the initial named Senior Lender hereunder shall have any obligations or rights under this Section 15(n).  

        (o)    Property Inspection Rights and Reports.    Senior Lender will use commercially
reasonable efforts to endeavor, at no cost to Senior Lender, to cause the Senior Borrower to permit agents, representatives and employees of any Junior Lender to inspect the Premises or any part
thereof during normal business hours on Business Days upon reasonable advance notice, provided that, as required pursuant to the Senior Loan Agreement,
such inspections are subject in all instances to the rights of tenants, and provided that neither such inspections shall not unreasonably interfere with the operation of business on the Premises. In
addition, to the extent that Senior Lender prepares or receives property reports or financial reports from the Borrowers or with respect to the Premises (including any notices, documents, plans,
specifications or reports received in connection with alterations to the Premises), Senior Lender will provide copies of such reports to any Junior Lender at such Junior Lender's request. 

        (p)    Interest Rate Cap Agreement.(1)    [Notwithstanding the occurrence of an Event of Default under the
Senior Loan, until such time that Senior Borrower and each of the Junior Borrowers obtain separate Interest Rate Cap Agreements for each of their respective loans, Senior Lender shall distribute any
payments received under the Interest Rate Cap Agreement to each Junior Lender in the amount of such Junior Lender's allocable share of such payment.] 

	(1)
	To
be deleted if there are interest rate cap agreements in place at Closing for each Junior Loan. 

        (q)    Cooperation with Junior Lender(s).    At the request of any Junior Lender, Senior Lender and each other Junior
Lender shall use reasonable efforts, at such requesting Junior Lender's expense, to cooperate with such Junior Lender in attempting to cause Senior Borrower and each affected Junior Borrower in such
Junior Lender's creation of component notes, splitting its Junior Loan into or one or more new mezzanine loans or consolidating one or more Junior Loans held by such Junior Lender into a fewer number
of Junior Loans, including entering into (or consenting to, as applicable) any modifications to this Agreement, the Senior Loan Documents or the affected Junior Loan Documents, and to cooperate with
such requesting Junior Lender in attempting to cause Senior Borrower and the other Junior Borrowers to execute such modifications to the Senior Loan Documents and the applicable Junior Loan Documents,
in any such case, as may be reasonably requested by the requesting Junior Lender; provided, however,
Senior Lender or any such Junior Lender shall not be required to modify or amend this Agreement, any Senior Loan Documents or its respective Junior Loan Documents (or consent to such modification of
the Senior Loan Documents or the applicable Junior Loan Documents), if such modification or amendment would (1) materially increase Senior Borrower's obligations under the Senior Loan Documents
or materially decrease the Senior Borrower's rights, remedies or protections thereunder or materially increase the respective Junior Borrower's obligations under its Junior Loan Documents or decrease
such Junior Lender's rights, remedies or protections thereunder, (2) change the economic terms allocable to the Senior Loan or the applicable Junior Loans (including, without limitation, the
basis upon which any reserve requirement is triggered or suspended) under the Senior Loan Documents and/or applicable Junior Loan Documents or (3) otherwise, in Senior Lender's or any Junior
Lender's judgment, have any material adverse impact on Senior Lender or such Junior Lender or on the Senior Loan or such Junior Lender's Junior Loan. 

64

 

        (r)    Ground Lease Default.    Notwithstanding anything contained herein to the contrary, a Ground Lease Default
(defined below) shall, for all purposes hereunder, constitute a default under the Senior Loan with respect to which Junior Lenders shall have the right to cure in accordance with this  Section 15(r)
whether or not Senior Lender has cured such Ground Lease Default. In connection with any default by the applicable Senior Borrower
under a Ground Lease (a "Ground Lease Default"), Senior Lender shall, subject to the limitations and conditions set forth below, comply with each of the
following provisions, to the extent applicable: 

          (i)  If
Senior Lender shall receive any written notice that a Ground Lease Default has occurred and is continuing, Senior Lender shall promptly notify each Junior Lender in
writing of the same and
promptly deliver to each Junior Lender a true and complete copy of each such notice. Further, Senior Lender shall provide such documents and information as each Junior Lender shall reasonably request
concerning the Ground Lease Default; provided that, in the event such requested documentation and information is not in the actual possession of Senior
Lender, Senior Lender shall only be required to use commercially reasonable efforts to obtain such information and the applicable Junior Lender shall pay all reasonable costs and expenses of Senior
Lender incurred in connection with obtaining such requested documentation and information. 

         (ii)  Senior
Lender shall, if requested by a Junior Lender, take all commercially reasonable action, to the extent permitted under the defaulted Ground Lease and not
performed by Senior Borrower, to (A) cure any Ground Lease Default (to the extent such Ground Lease Default is susceptible of cure by Senior Lender), to keep and maintain such Ground Lease in
full force and effect and (B) exercise any option to renew or extend the Ground Lease and give written confirmation thereof to each Junior Lender within thirty (30) days after such
option is exercised; provided that the costs and expenses incurred by Senior Lender in taking any such actions under this clause (ii) shall be
paid pro rata by the Junior Lenders, except to the extent such costs and expenses are otherwise allocated to any party other than the Senior Lender pursuant to the pooling and servicing agreement for
the Securitization of the Senior Loan. 

        (iii)  If
the ground lessor shall reject the Ground Lease under or pursuant to Section 365 of the Bankruptcy Code, Senior Lender shall use commercially reasonable
efforts to not permit the Senior Borrower to elect to treat the Ground Lease as terminated, and shall use commercially reasonable efforts to require the Senior Borrower to elect to remain in
possession of the Premises demised under the Ground Lease and the leasehold estate under the Ground Lease. 

        (iv)  In
the event that the Senior Lender assumes a Ground Lease or becomes entitled to a New Lease from the ground lessor prior to Senior Borrower rejecting such Ground
Lease in a Proceeding, Senior Lender hereby agrees that, in the event that a Junior Lender forecloses or otherwise realizes upon its Equity Collateral in accordance with the terms of this Agreement,
including, but not limited to, the terms and provisions of Section 6 hereof, and thereby gains title to such Equity Collateral, Senior Lender hereby
agrees that, promptly after the completion of such foreclosure or other action to transfer title to such Equity Collateral, it will assign the assumed Ground Lease or New Lease to the Senior Borrower. 

         (v)  Notwithstanding
anything to the contrary contained in this Agreement, (A) in the event that a Junior Lender requests that Senior Lender take or refrain from
taking any action pursuant to this Section 15(r) and Senior Lender complies with such request, such Junior Lender shall protect, indemnify and
save harmless the Indemnified Parties from and against any claims, demands, penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind or nature, known or unknown,
contingent or otherwise, whether incurred or imposed within or outside the judicial process, including, without limitation, reasonable attorneys' fees and disbursements imposed upon or incurred by or
asserted against any of the Indemnified Parties by reason of such requested actions or inactions and (B) Senior Lender shall have no obligation to 

65

 

take
or refrain from taking any action pursuant to this Section 15(r) (1) unless and until such Junior Lender has cured all monetary
Events of Default under the Senior Loan Documents and all non-monetary Events of Default under the Senior Loan Documents (other than those which are not susceptible of cure by Junior
Lender and which do not materially impair the value, use or operation of the Premises) prior to the lapse of any cure periods set forth under  Section 12(a)(ii) or (2) if compliance with the
provisions of this Section 15(r)
would (1) violate the Senior Loan Documents or any law, rule or regulation or (2) in the event that the Senior Loan or any interest therein is included as an asset of a real estate
mortgage investment conduit ("REMIC") within the meaning of Section 860D(a) of the Code, cause the Senior Loan (or portion thereof which is
included in a REMIC) to fail to qualify at all times as a "qualified mortgage" within the meaning of Section 860G(a)(3) of the Code, or, subsequent to a foreclosure or delivery of a deed in
lieu thereof, fail to qualify the Premises, as "foreclosure property" within the meaning of Section 860G(a)(8) of the Code. In addition, notwithstanding anything to the contrary contained
herein, if Senior Lender determines, in accordance with Accepted Servicing Practices, that any other action in connection with a Ground Lease Default is necessary to preserve the related Ground Lease
or to protect or preserve the lien of the Mortgage, Senior Lender may take any such action; provided, in either event, that Senior Lender or any
servicer on its behalf shall not be obligated to expend or advance any of its own funds if such Person determines that such expenditure or advance would constitute a non-recoverable
advance under the terms of any servicing agreement governing the administration of the Senior Loan (it being agreed that in the event Junior Lender delivers to Senior Lender sums sufficient to cure
any monetary default under the Ground Lease, the expenditure of such sums shall not be deemed a non-recoverable expenditure). 

        (vi)  Any
sums due to Senior Lender from a Junior Lender under this Section 15(r) or reasonably requested by Senior
Lender in anticipation of incurring any expenses required to be paid by such Junior Lender pursuant to this Section 15(r), shall be paid within
ten (10) Business Days of demand by Senior Lender. Failure to pay any such sums within five (5) Business Days of Senior Lender's written notification to such Junior Lender that such
Junior Lender failed to comply with the requirements of the immediately preceding sentence will constitute a waiver by such Junior Lender of any rights it may have under this  Section 15(r).

       (vii)  Notwithstanding
anything to the contrary contained herein, if Senior Lender and/or one or more Junior Lenders elect to exercise any rights granted to a Junior Lender
under this Section 15(r), Senior Lender and each Senior Junior Lender acknowledge and agree that, as between Senior Lender and each Junior
Lender, the most junior Subordinate Junior Lender shall have the superior right to exercise such rights. 

      (viii)  Nothing
contained herein shall be deemed to grant any Junior Lender the right to cure a Ground Lease Default beyond the period for cure afforded to the Senior Lender
or Junior Lender under the Ground Lease (or any agreement entered into with the ground lessor thereunder). 

        (s)    Subordination of Ground Lease.    Senior Lender shall not consent to the subordination of any Ground Lease to
any fee mortgage, except to the extent such subordination is required as a condition to receiving a New Lease, without the prior written consent of each Junior Lender, which consent shall not be
unreasonably withheld, conditioned or delayed. 

        (t)    Modification of the Ground Lease.    Senior Lender shall not consent to a modification or termination of the
Ground Lease, except to the extent Senior Lender has the obligation to so consent in the Senior Loan Documents, without the prior written consent of each Junior Lender, which consent shall not be
unreasonably withheld, conditioned or delayed. Senior Lender shall use commercially reasonable efforts to forward to each Junior Lender any notice Senior Lender receives under each 

66

 

Ground
Lease; provided, however, that failure of Senior Lender to deliver such notice shall not impose
any liability on Senior Lender nor modify the obligations of the parties hereunder. 

        Section 16.    Financing of the Junior Loans.    (a) Notwithstanding any other provision hereof but
subject to the provisions of Section 16(b), Senior Lender and each Junior Lender hereby consents to each Junior Lender's pledge (a
"Pledge") of its respective Junior Loan and of the Separate Collateral to any entity which has extended a credit facility to such Junior Lender that is
a Qualified Transferee or a financial institution whose long-term unsecured debt is rated at least "A" (or the equivalent) or better by each Rating Agency (a "Loan
Pledgee"), on the terms and conditions set forth in this Section 16, it is also agreed that the sale by a Junior Lender
of its respective Junior Loan to a Qualified Transferee and the simultaneous agreement by such Junior Lender to repurchase its Junior Loan under an arrangement documented as a repurchase agreement
(the "Repo Agreement") shall qualify as a Pledge, provided all applicable terms and conditions of this subsection (a) are complied with;  provided further that a Loan Pledgee which is not a Qualified Transferee may not take title to the Separate Collateral without a Rating Agency
Confirmation. Upon written notice by a Junior Lender to Senior Lender and the other Junior Lenders that the Pledge has been effected, Senior Lender and each Junior Lender agrees to acknowledge receipt
of such notice and thereafter agrees: (i) to give Loan Pledgee written notice of any default by the applicable Junior Lender under this Agreement of which default Senior Lender or such Junior
Lender has actual knowledge; (ii) to allow Loan Pledgee a period of ten (10) days (in respect of a monetary default) and thirty (30) days (in respect of a non-monetary
default) by the applicable Junior Lender in respect of its obligations to Senior Lender or such Junior Lender hereunder, but Loan Pledgee shall not be obligated to cure any such default;
(iii) that no amendment or modification of this Agreement which adversely affects the rights or obligations of the Junior Lender which has made a Pledge to such Loan Pledgee, and no waiver or
termination of any applicable Junior Lender's rights under this Agreement, shall be effective against Loan Pledgee without the written consent of Loan Pledgee, which consent shall not be unreasonably
withheld; provided, however, the consent of the Loan Pledgee shall not be required unless the applicable
Junior Lender's consent was required pursuant to the terms of this Agreement to effect such modification, waiver or termination; (iv) that Senior Lender shall give to Loan Pledgee copies of any
Senior Loan Default Notice and each Junior Lender shall give to Loan Pledgee copies of any Junior Loan Default Notice issued by such Junior Lender simultaneously with the giving of same to the
applicable Junior Lender and accept any cure thereof by Loan Pledgee made in accordance with the provisions of Section 12 of this Agreement as if such cure were made by the applicable Junior
Lender; (v) that Senior Lender and each Junior Lender shall deliver to Loan Pledgee such estoppel certificate(s) as Loan Pledgee shall reasonably request, provided that any such estoppel
certificate(s) shall be in the form contemplated by Section 19 or in such other form reasonably acceptable to Senior Lender and such Junior
Lender; and (vi) that, upon written notice (a "Redirection Notice") to Senior Lender or a Junior Lender by Loan Pledgee that either
(x) states that the pledging Junior Lender is in default, beyond applicable cure periods, under such Junior Lender's obligations to Loan Pledgee pursuant to the applicable credit agreement (or
Repo Agreement) between such Junior Lender and Loan Pledgee (which notice need not be joined in or confirmed by such Junior Lender), or (y) is joined in or confirmed by such pledging Junior
Lender countersigning the Redirection Notice, and until such Redirection Notice is withdrawn or rescinded by Loan Pledgee, Senior Lender and each Junior Lender shall remit to the applicable Loan
Pledgee and not to the applicable Junior Lender, any payments that Senior Lender or a Junior Lender would otherwise be obligated to pay to such Junior Lender from time to time pursuant to this
Agreement, any Senior Loan Document, any Junior Loan Document or any other agreement between Senior Lender or any Junior Lender that relates to the Senior Loan or a Junior Loan. Each Junior Lender
hereby unconditionally and absolutely releases Senior Lender and the other Junior Lenders from any liability to such Junior Lender on account of Senior Lender's or a Junior Lender's compliance with
any Redirection Notice believed by Senior Lender or a Junior Lender to have been delivered by such Junior Lender's Loan Pledgee. Loan 

67

 

Pledgee
shall be permitted to fully exercise its rights and remedies against the applicable Junior Lender, and realize on any and all collateral granted by the applicable Junior Lender to Loan Pledgee
(and accept an assignment in lieu of foreclosure as to such collateral), in accordance with applicable law. In such event, the Senior Lender and each of the other Junior Lenders shall recognize Loan
Pledgee (and any transferee which is also a Qualified Transferee at any foreclosure or similar sale held by Loan Pledgee or any transfer in lieu of such foreclosure), and its successors and assigns,
as the successor to the applicable Junior Lender's rights, remedies and obligations under this Agreement and the Junior Loan Documents and any such Loan Pledgee or Qualified Transferee shall assume in
writing (for the benefit of Senior Lender and the other Junior Lenders and their respective successors and assigns) the obligations of the applicable Junior Lender hereunder accruing from and after
such Transfer and agrees to be bound by the terms and provisions hereof, it being agreed that, notwithstanding anything to the contrary contained herein, such Loan Pledgee shall not be required to so
assume applicable Junior Lender's obligations hereunder prior to such realization on such collateral. The rights of Loan Pledgee under this  Section 16 shall remain effective unless and until Loan
Pledgee shall have notified the Senior Lender and Junior Lenders in writing that its
interest in the applicable Junior Loan has terminated. 

        (b)   Notwithstanding
any provisions herein to the contrary, if a conduit ("Conduit") which is not a Qualified Transferee
provides financing to Junior Lender, then such Conduit will be a permitted "Loan Pledgee" despite the fact it is not a Qualified Transferee if the following conditions are satisfied: 

          (i)  the
loan (the "Conduit Inventory Loan") made by the Conduit to the Junior Lender to finance the acquisition and holding
of its interest in the Junior Lender's Junior Loan will require a third party (the "Conduit Credit Enhancer") to provide credit enhancement; 

         (ii)  the
Conduit Credit Enhancer and the administrator of the Conduit will be a Qualified Transferee; 

        (iii)  the
pledging Junior Lender will pledge (or sell, transfer or assign as part of a repurchase facility) its interest in the Junior Loan to the Conduit as collateral for
the Conduit Inventory Loan; 

        (iv)  the
Conduit Credit Enhancer and the Conduit will agree that, if Junior Lender defaults under the Conduit Inventory Loan, or if the Conduit is unable to refinance its
outstanding commercial paper even if there is no default by Junior Lender, the Conduit Credit Enhancer will purchase the Conduit Inventory Loan from the Conduit, and the Conduit will assign the pledge
of Junior Lender's interest in the Junior Loan to the Conduit Credit Enhancer; and 

         (v)  unless
the Conduit is in fact then a Qualified Transferee, the Conduit will not without obtaining a Rating Agency Confirmation from each Rating Agency have any greater
right to acquire the interests in the Junior Loan pledged by the Junior Lender, by foreclosure or otherwise, than would any other purchaser that is not a Qualified Transferee at a foreclosure sale
conducted by a Loan Pledgee. 

        Section 17.    Obligations Hereunder Not Affected.    (a) All rights, interests, agreements and
obligations of Senior Lender and each Junior Lender under this Agreement shall remain in full force and effect irrespective of: 

        (b)   any
lack of validity or enforceability of any of the Senior Loan Documents or any of the Junior Loan Documents or any other agreement or instrument relating thereto; 

        (c)   any
taking, exchange, release or non-perfection of any other collateral, or any taking, release or amendment or waiver of or consent to or departure from any
guaranty, for all or any portion of the Senior Loan or the Junior Loans; 

        (d)   any
manner of application of collateral, or proceeds thereof, to all or any portion of the Senior Loan or the Junior Loans, or any manner of sale or other disposition of
any collateral for all or 

68

 

any
portion of the Senior Loan or the Junior Loans or any other assets of Senior Borrower or Junior Borrowers or any other Affiliates of Senior Borrower or any Junior Borrower; 

        (e)   any
change, restructuring or termination of the ownership structure or existence of Borrower, Junior Borrowers or any other Affiliates of Senior Borrower; or 

        (f)    any
other circumstance which might otherwise constitute a defense available to, or a discharge of, Senior Borrower, any Junior Borrower or a subordinated creditor or
Senior Lender or any Junior Lender subject to the terms hereof. 

        (g)   This
Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any payment of all or any portion of the Senior Loan or a Junior Loan
is rescinded or must otherwise be returned by Senior Lender or a Junior Lender upon the insolvency, bankruptcy or reorganization of Senior Borrower or a Junior Borrower or otherwise, all as though
such payment had not been made. 

        Section 18.    Notices.    All notices, consents, approvals and requests (any of the foregoing, a
"Notice") required or permitted hereunder or under any other Loan Document shall be given in writing and shall be effective for all purposes if
(i) hand-delivered; (ii) sent by (A) certified or registered United States mail, postage prepaid, return receipt requested or (B) expedited prepaid delivery
service, either commercial or United States Postal Service, with proof of attempted delivery, or (iii) sent by telecopier (with advice by telephone to recipient that a telecopy notice is
forthcoming and a machine-generated confirmation of successful transmission), addressed as follows (or at such other address and
Person as shall be designated from time to time by any party hereto, as the case may be, in a written notice to the other parties hereto in the manner provided for in this Section): 

To
Senior Lender: 

JPMorgan
Chase Bank, N.A.

c/o Centerline Servicing Inc.

5221 N. O'Connor Blvd., Suite 600

Irving, Texas 75039

Attention: John Roach

Senior Vice President, Asset Management

Facsimile No. (972) 868-5493 

With
a copy to: 

Cadwalader,
Wickersham & Taft LLP

One World Financial Center

New York, NY 10281

Attention: Fredric L. Altschuler, Esq. and Steven M. Herman, Esq.

Facsimile No.: (212) 504-6666 

69

 

To
each of First Mezzanine Lender, Second Mezzanine Lender, Third

        Mezzanine Lender, Fourth Mezzanine Lender, Fifth Mezzanine Lender,

        Sixth Mezzanine Lender and Seventh Mezzanine Lender: 

JPMorgan
Chase Bank, N.A.

c/o Centerline Servicing Inc.

5221 N. O'Connor Blvd., Suite 600

Irving, Texas 75039

Attention: John Roach

Senior Vice President, Asset Management

Facsimile No. (972) 868-5493 

With
a copy to: 

Cadwalader,
Wickersham & Taft LLP

One World Financial Center

New York, NY 10281

Attention: Fredric L. Altschuler, Esq. and Steven M. Herman, Esq.

Facsimile No.: (212) 504-6666 

A
notice shall be deemed to have been given: in the case of hand delivery, at the time of delivery; in the case of registered or certified mail, when delivered or the first attempted delivery on a
Business Day; in the case of expedited prepaid delivery, upon the first attempted delivery on a Business Day; or in the case of telecopy, upon sender's receipt of a machine-generated confirmation of
successful transmission after advice by telephone to recipient that a telecopy notice is forthcoming. 

        Section 19.    Estoppel.    (a) Each Junior Lender shall, within ten (10) days following a
request from Senior Lender or another Junior Lender, provide Senior Lender or such Junior Lender with a written statement setting forth the then current outstanding principal balance of the Junior
Loan held by such Junior Lender, the aggregate accrued and unpaid interest under the Junior Loan held by such Junior Lender, and stating whether to such Junior Lender's knowledge any default or Event
of Default exists under the Junior Loan held by such Junior Lender or this Agreement. 

        (b)   Senior
Lender shall, within ten (10) days following a request from a Junior Lender, provide such Junior Lender with a written statement setting forth the then
current outstanding principal balance of the Senior Loan, the aggregate accrued and unpaid interest under the Senior Loan, and stating whether to Senior Lender's knowledge any default or Event of
Default exists under the Senior Loan or this Agreement. 

        (c)   Any
statement provided pursuant to this Section 19 may be relied upon by any Loan Pledgee, any investor or
participant in the Senior Loan or any Junior Loan, or any purchaser of the Senior Loan or any Junior Loan (or of any interest or a participation interest therein), but may not be relied upon by Senior
Borrower, any Junior Borrower or any guarantor with respect to the Senior Loan or any Junior Loan. 

        Section 20.    Further Assurances.    So long as all or any portion of the Senior Loan or any Junior Loan
remains unpaid and any Senior Loan Document encumbers the Premises or a Junior Loan Document encumbers the Equity Collateral, Senior Lender and each Junior Lender shall each execute, acknowledge and
deliver in recordable form and upon demand of the other, any other instruments or agreements reasonably required in order to carry out the provisions of this Agreement or to effectuate the intent and
purposes hereof. 

        Section 21.    No Third Party Beneficiaries; No Modification.    The parties hereto do not intend the benefits
of this Agreement to inure to Senior Borrower, any Junior Borrower or any other Person other than the parties hereto and the successors and permitted assigns and a Loan Pledgee. This Agreement 

70

 

may
not be changed or terminated orally, but only by an agreement in writing signed by the party against whom enforcement of any change is sought. If any Certificates are outstanding, this Agreement
will not be amended in any material respect unless a Rating Agency Confirmation has been obtained with respect to such amendment. 

        Section 22.    Successors and Assigns.    This Agreement shall bind all successors and permitted assigns of
each Junior Lender and Senior Lender and shall inure to the benefit of all successors and permitted assigns of Senior Lender and each Junior Lender. 

        Section 23.    Counterpart Originals.    This Agreement may be executed in counterpart originals, each of which
shall constitute an original, and all of which together shall constitute one and the same agreement. 

        Section 24.    Governing Law; Waiver of Jury Trial.    THIS AGREEMENT AND THE
RESPECTIVE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE. EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT.

        Section 25.    Consents to Jurisdiction.    Each of the parties hereto irrevocably and unconditionally submits
to the jurisdiction of the United States District Court for the Southern District of New York, any court in the State of New York located in the borough of Manhattan in the city and county of New
York, and any appellate court from any thereof, in any action, proceeding or counterclaim arising out of or relating to this Agreement or the transactions contemplated hereunder or for recognition or
enforcement of any judgment and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any action, proceeding or counterclaim arising out of or relating to
this Agreement or the transactions contemplated hereunder may be heard or determined in such New York State court or, to the extent permitted by law, in such federal court. 

        Section 26.    No Waiver by Senior Lender or Junior Lenders.    Senior Lender shall not be prejudiced in its
rights under this Agreement by any act or failure to act by Senior Borrower or any Junior Lender, or any non-compliance of Senior Borrower or any Junior Lender with any agreement or
obligation, regardless of any knowledge thereof which Senior Lender may have or with which Senior Lender may be charged; and no action of Senior Lender permitted hereunder shall in any way affect or
impair the rights of Senior Lender and the obligations of Junior Lender under this Agreement. No delay on the part of Senior Lender in the exercise of any rights or remedies shall operate as a waiver
thereof, and no single or partial exercise by Senior Lender of any right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy; nor shall any
modification or waiver of any of the provisions of this Agreement be binding upon Senior Lender except as expressly set forth in a writing duly signed and delivered on behalf of Senior Lender. No
Junior Lender shall be prejudiced in its rights under this Agreement by any act or failure to act by Senior Borrower or Senior Lender or any Junior Borrower or other Junior Lender, or any
non-compliance of Senior Borrower or Senior Lender or any Junior Borrower or other Junior Lender with any agreement or obligation, regardless of any knowledge thereof which Junior Lender
may have or with which Junior Lender may be charged; and no action of Junior Lender permitted hereunder shall in any way affect or impair the rights of such Junior Lender and the obligations of Senior
Lender and any other Junior Lenders under this Agreement. No delay on the part of Junior Lender in the exercise of any rights or remedies shall operate as a waiver thereof, and no single or partial
exercise by Junior Lender of any right or remedy shall preclude other right or remedy; nor shall any modification or waiver of any of the provisions of this Agreement be binding upon Junior Lender
except as expressly set forth in a writing duly signed 

71

 

and
delivered on behalf of Junior Lender. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 

        Section 27.    No Joint Venture.    Nothing provided herein is intended to create a joint venture, partnership,
tenancy-in-common or joint tenancy relationship between or among any of the parties hereto. 

        Section 28.    Captions.    The captions in this Agreement are inserted only as a matter of convenience and for
reference, and are not and shall not be deemed to be a part hereof. 

        Section 29.    Conflicts.    In the event of any conflict, ambiguity or inconsistency between the terms and
conditions of this Agreement and the terms and conditions of any of the Senior Loan Documents or the Junior Loan Documents, the terms and conditions of this Agreement shall prevail, as between Senior
Lender and each Junior Lender, but shall not inure to the benefit of Borrower or any Junior Borrower. 

        Section 30.    No Release.    Nothing herein contained shall operate (a) to release Senior Borrower from
(i) its obligation to keep and perform all of the terms, conditions, obligations, covenants and agreements
contained in the Senior Loan Documents or (ii) any liability of Senior Borrower under the Senior Loan Documents or (b) to release any Junior Borrower from (i) its obligation to
keep and perform all of the terms, conditions, obligations, covenants and agreements contained in the applicable Junior Loan Documents or (ii) any liability of a Junior Borrower under its
respective Junior Loan Documents. 

        Section 31.    Continuing Agreement.    This Agreement is a continuing agreement and shall remain in full force
and effect until the earlier of (x) payment in full of the Senior Loan and all of the Junior Loans or (y) transfer of title to the Junior Lenders of their respective Separate Collateral
(provided, however, in such instance this Agreement shall terminate with respect to any Junior Lender
who acquires title to its respective Equity Collateral and any applicable Subordinate Junior Lenders) or (z) the transfer of all of the Premises by foreclosure of the Senior Loan Documents or
the exercise of power of sale contained therein by deed-in-lieu of foreclosure; provided,  however, that any rights or remedies of any party hereto arising
out of any breach of any provision hereof occurring prior to the date of termination
shall survive such termination. In the event the Senior Loan is repaid in full, (x) the Senior Junior Lender with the highest priority shall have the right to exercise all of the rights granted
to Senior Lender pursuant to this Agreement and shall, from and after the repayment in full, be deemed to be the "Senior Lender" and to be the holder of
the "Senior Loan" for all purposes without requiring the amendment of this Agreement, (y) references hereafter to the Senior Loan Agreement shall
be deemed to be references to the First Mezzanine Loan Agreement and (z) references to "transfer of the Premises by foreclosure sale, sale by power of sale or delivery of a deed in lieu of
foreclosure" (or words of similar import) shall be deemed to be references to transfer of the First Mezzanine Lender's Equity Collateral pursuant to any Equity Collateral Enforcement Action.
Notwithstanding the foregoing provisions of this Section 31, in the event the Senior Loan or any Junior Loan is repaid in full, the Senior Lender
or Junior Lender that was the holder of such repaid loan shall have no further rights under this Agreement, but this Agreement shall remain in effect as to any outstanding Junior Lender.
Notwithstanding any termination of this Agreement with respect to any party hereto, each party hereto agrees that the restrictions regarding release of collateral set forth in  Section 8 above shall
remain enforceable with respect to any letter(s) of credit held by Senior Lender or any Junior Lender except as may be
required pursuant to the Senior Loan Documents, the applicable Junior Loan Documents or applicable law. 

        Section 32.    Severability.    In the event that any provision of this Agreement or the application hereof to
any party hereto shall, to any extent, be invalid or unenforceable under any applicable statute, regulation, or rule of law, then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform to such statute, regulation or rule of law, and the remainder of this Agreement and the application of any such invalid or unenforceable
provisions to parties, jurisdictions or circumstances other than to whom or to which it is held invalid or unenforceable, shall not be affected thereby nor shall same affect the validity or
enforceability of any other provision of this Agreement. 

72

 

  
        Section 33.    Expenses.    (a) To the extent not paid by Senior Borrower or out of or from any
collateral securing the Senior Loan which is realized by Senior Lender, each Junior Lender agrees upon demand to pay to Senior Lender the amount of any and all reasonable expenses, including, without
limitation, the reasonable fees and expenses of its counsel and of any experts or agents, which Senior Lender may incur in connection with the (i) exercise or enforcement of any of the rights
of Senior Lender against such Junior Lender hereunder to the extent that Senior Lender is the prevailing party in any dispute with respect thereto or (ii) failure by such Junior Lender to
perform or observe any of the provisions hereof. 

        (b)   To
the extent not paid by a Junior Borrower out of or from any collateral securing the related Junior Loan which is realized by the applicable Junior Lender, Senior
Lender agrees upon demand to pay to such Junior Lender the amount of any and all reasonable expenses, including, without limitation, the reasonable fees and expenses of its counsel and of any experts
or agents, which such Junior Lender may incur in connection with the (i) exercise or enforcement of any of the rights of such Junior Lender against Senior Lender hereunder to the extent that
such Junior Lender is the prevailing party in any dispute with respect thereto or (ii) failure by Senior Lender to perform or observe any of the provisions hereof. 

        (c)   To
the extent not paid by a Junior Borrower out of or from any collateral securing the related Junior Loan which is realized by the applicable Junior Lender, each other
Junior Lender agrees upon demand to pay to such Junior Lender the amount of any and all reasonable expenses, including, without limitation, the reasonable fees and expenses of its counsel and of any
experts or agents, which such Junior Lender may incur in connection with the (i) exercise or enforcement of any of the rights of such Junior Lender against such other Junior Lender hereunder to
the extent that such Junior Lender is the prevailing party in any dispute with respect thereto or (ii) failure by such other Junior Lender to perform or observe any of the provisions hereof. 

        Section 34.    Injunction.    Each party to this Agreement acknowledges (and waives any defense based on a
claim) that monetary damages are not an adequate remedy to redress a breach by the other hereunder and that a breach by any party hereunder would cause irreparable harm to any other party to this
Agreement. Accordingly, each party to this Agreement agrees that upon a breach of this Agreement by any other party, the remedies of injunction, declaratory judgment and specific performance shall be
available to such non-breaching party. 

        Section 35.    Mutual Disclaimer.    (a) Senior Lender and the Junior Lenders are each sophisticated
lenders and/or investors in real estate and their respective decision to enter into the Senior Loan and the Junior Loans is based upon their own independent expert evaluation of the terms, covenants,
conditions and provisions of, respectively, the Senior Loan Documents and the Junior Loan Documents and such other matters, materials and market conditions and criteria which each of Senior Lender and
the Junior Lenders deem relevant. Each of Senior Lender and each of the Junior Lenders has not relied in entering into this Agreement, and respectively, the Senior Loan, the Senior Loan Documents, the
Junior Loans and the Junior Loan Documents upon any oral or written information, representation, warranty or covenant from any other party hereto (or any oral or written information, representation,
warranty or covenant from any other party's representatives, employees, Affiliates or agents) other than the representations and warranties, if any, of such other party contained herein and therein.
Each of Senior Lender and each of the Junior Lenders further acknowledges that no employee, agent or representative of the other has been authorized to make, and that each of Senior Lender and the
Junior Lenders have not relied upon, any statements, representations, warranties or covenants other than those specifically contained in this Agreement. Without limiting the foregoing, each of Senior
Lender and each of the Junior Lenders acknowledges that the other has made no representations or warranties as to the Senior Loan or the Junior Loans or the Premises except as set forth herein
(including, without limitation, the cash flow of the Premises, the value, marketability, condition or future performance thereof, the existence, status, adequacy or sufficiency of the leases, the 

73

 

tenancies
or occupancies of the Premises, or the sufficiency of the cash flow of the Premises, to pay all amounts which may become due from time to time pursuant to the Senior Loan or the Junior
Loans). 

        (b)   Each
of Senior Lender and each of the Junior Lenders acknowledges that the Senior Loan, the Senior Loan Documents, each of the Junior Loans, and each of the Junior Loan
Documents are distinct, separate transactions and loans, separate and apart from each other. Each of Senior Lender and each of the Junior Lenders acknowledges that the other are distinct separate
lenders with distinct and separate loans with various rights and remedies with respect to the Premises which are not in all respects aligned. 

        Section 36.    Indemnification.    Each Junior Lender shall, as to notices delivered by it, indemnify Senior
Lender from and against any and all liabilities, obligations, losses, damages, penalties and expenses of any kind or nature whatever that may be imposed on, incurred by or asserted against Senior
Lender in any manner relating to or arising out of Senior Lender's good faith reliance on any notice of default delivered by such Junior Lender to Senior Lender pursuant to which any excess cash flow
that would otherwise be remitted to Senior Borrower pursuant to the Senior Loan Documents is instead transferred to such Junior Lender pursuant to the its respective Junior Loan Documents. 

        Section
37.    Affiliated Mezzanine Lender.    (a) Notwithstanding anything in this Agreement to the contrary,
in the event that at any time any Person who owns, directly or indirectly, more than 50% of an economic, legal or other beneficial interest in Senior Borrower or which has the power, directly or
indirectly, to direct or cause the direction of the management or policies of Senior Borrower, is the direct or indirect holder of more than 25% of any Junior Loan, whether as a co-lender,
participant or otherwise, or otherwise Controls such Junior Lender (an "Affiliate Junior Lender"), such Affiliate
Junior Lender shall not be entitled to exercise (or to cause to be exercised, through the exercise of voting rights, contracts rights, or otherwise) any of the benefits, rights (including, but not
limited to, consent and approval rights) or remedies otherwise available to such Junior Lender pursuant to this Agreement under Sections 6, 8, 10(b)-(d), 12(a)(i)-(ii),
12(b), 13, 15, 19(b) or 34 hereof or to make any Protective Advances pursuant to or in connection with the applicable Junior Loan Documents; provided,
however, that such Affiliate Junior Lender shall otherwise in all events remain subject to and be bound by all of the duties, obligations, covenants, representations,
warranties, restrictions, conditions and liabilities of a Junior Lender under this Agreement. Notwithstanding anything hereinto contrary, Junior Lender shall be permitted to (i) Transfer the
applicable Junior Loan pursuant to and in accordance with the terms and provisions of Section 5, and (ii) modify the applicable Junior
Loan Documents pursuant to and in accordance with the terms and provisions of Section 8(b) and 8(c). 

        (b)   Each
Affiliate Junior Lender shall also be subject to the following limitations and restrictions: 

          (i)  so
long as the Senior Loan Liabilities shall remain unsatisfied, such Affiliate Junior Lender shall not take any of the following actions (or cause, through the
exercise of voting rights, contract rights or otherwise, any of the following actions to be taken): 

        (A)  take,
sue for, ask or demand from any Senior Junior Borrower or Senior Borrower any payment on account of the Junior Loan in which it has an interest; or 

        (B)  commence
any judicial or non-judicial action or proceeding to (I) collect the Rents, or (II) have a receiver appointed to collect the Rents or
take any other actions with respect to the Premises; 

        (C)  interfere
with Senior Lender or any Senior Junior Lender in its administration and enforcement of the Senior Loan or the applicable Senior Junior Loan and their
respective rights and remedies thereunder and pursuant to the Senior Loan Documents or the applicable Senior Junior Loan Documents; 

74

 

        (D)  commence,
prosecute or participate in any suit, action, case or proceeding against Senior Borrower or any Senior Junior Borrower in violation of the express provisions
of this Agreement or violate any of the other express terms or provisions of this Agreement, and, in the event of any such violation, Senior Lender or such Senior Junior Lender may intervene and
interpose such defense or plea as it shall elect, including that of bad faith filing by such Affiliate Junior Lender, and shall, in any event, be entitled to
restrain such actions in the same suit, action, case or proceeding or in any independent suit, action, case or proceeding; or 

        (E)  enforce
against Senior Borrower or any Senior Junior Borrower any right of such Affiliate Junior Lender to approve, consent to or set standards with respect to
(A) any lease for any portion of the Premises, (B) any operating or capital budget for the Premises, (C) any proposed alteration or modification of the Premises, or (D) any
other matter relating to the operation, maintenance, management, repair and leasing of the Premises; and 

         (ii)  such
Affiliate Junior Lender shall not be entitled to (and hereby waives any right which it would otherwise have to require) promptness, diligence, notice of acceptance
or any other notice with respect to the Senior Loan or any Senior Junior Loan, and Senior Lender or any Senior Junior Lender shall have no obligation to protect, secure, perfect or insure any security
interest or lien on any property for the benefit of such Affiliate Junior Lender or exhaust any right or take any action against Senior Borrower or any Senior Junior Borrower or any other Person or
property for the benefit of such Affiliate Junior Lender. 

        (c)   Notwithstanding
anything hereinto the contrary, an Affiliate Junior Lender may exercise its rights pursuant to  Section 14 hereof so long as such Affiliate Junior Lender also pays as part of the Senior Junior Loan
Purchase Price, any liquidated damage
amount, any exit fees and any prepayment premiums, any spread maintenance or yield maintenance charges, any late charges or any default interest incurred or accrued with respect to each Senior Junior
Loan. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

75

  
        IN WITNESS WHEREOF, Senior Lender and the Junior Lenders have executed this Agreement as of the date and year first set forth above. 

	 	 	SENIOR LENDER:
	

 	
 	
JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	
FIRST MEZZANINE LENDER:
	

 	
 	
JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	
SECOND MEZZANINE LENDER:
	

 	
 	
JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

	

 	
 	
THIRD MEZZANINE LENDER:
	

 	
 	
JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	
FOURTH MEZZANINE LENDER:
	

 	
 	
JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	
FIFTH MEZZANINE LENDER:
	

 	
 	
JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

	

 	
 	
SIXTH MEZZANINE LENDER:
	

 	
 	
JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	
SEVENTH MEZZANINE LENDER:
	

 	
 	
JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of America
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

 SCHEDULE 1

 BORROWERS  

SENIOR BORROWER:  

	1.
	301
HCR Properties of Oklahoma City (Northwest), LLC

	2.
	304
HCR Properties of Midwest City OK, LLC

	3.
	306
HCR Properties of Oklahoma City (Southwest), LLC

	4.
	307
HCR Properties of Tulsa OK, LLC

	5.
	503
HCR Properties-Stratford Hall of Richmond VA, LLC

	6.
	512
HCR Properties-Columbia SC, LLC

	7.
	526
HCR Properties-Lexington SC, LLC

	8.
	527
HCR Properties of Arlington VA, LLC

	9.
	531
HCR Properties-West Ashley-Charleston SC, LLC

	10.
	539
HCR Properties-Fair Oaks of Fairfax VA, LLC

	11.
	553
HCR Properties-Imperial of Richmond VA, LLC

	12.
	670
HCR Properties-Arden Courts of Annandale VA, LLC

	13.
	4015
HCR Properties-Charleston of Hanahan SC, LLC

	14.
	4031
HCR Properties-Oakmont of Union SC, LLC

	15.
	4032
HCR Properties-Oakmont East-Greenville SC, LLC

	16.
	4033
HCR Properties-Oakmont West-Greenville SC, LLC

	17.
	4071
HCR Properties-Medical Care Center-Lynchburg VA, LLC

	18.
	4074
HCR Properties of Alexandria VA, LLC

	19.
	HCR
ManorCare Maryland Properties II, LLC

	20.
	HCR
ManorCare Properties, LLC

	21.
	HCR
ManorCare West Virginia Properties, LLC 

FIRST MEZZANINE BORROWER:  

	1.
	HCR
I-A Properties, LLC

	2.
	HCR
I-B Properties, LLC 

SECOND MEZZANINE BORROWER:  

	1.
	HCR
II Properties, LLC 

THIRD MEZZANINE BORROWER:  

	1.
	HCR
III Properties, LLC 

FOURTH MEZZANINE BORROWER:  

	1.
	HCR
IV Properties, LLC 

FIFTH MEZZANINE BORROWER:  

	1.
	HCR
V Properties, LLC 

SIXTH MEZZANINE BORROWER:  

	1.
	HCR
VI Properties, LLC 

SEVENTH MEZZANINE BORROWER:  

	1.
	HCR
VII Properties, LLC 

each
of the above, a Delaware limited liability company 

QuickLinks

Exhibit 10.31

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]