Document:

Facility Agreement

 Exhibit 10.8 
 EXECUTION COPY 
 DATED AUGUST 31, 2006 
 GROSVENOR SQUARE HOTEL S.A.R.L 
 (As Borrower) 
 BARCLAYS BANK PLC 
 (As Original
Lender) 
 BARCLAYS CAPITAL MORTGAGE SERVICING LIMITED 
 (As Security Agent) 
 LOMAR HOTEL COMPANY LIMITED 
 (As Guarantor) 
 FACILITY AGREEMENT

 in respect of 
 a
revolving loan of up to £77,250,000 
 (with a term-out option) 
 relating to financing of the 
 Marriott Hotel, Grosvenor Square, London

 CONTENTS 
  

					
	 1
	    	Interpretation	  	1
	 2
	    	Facility and purpose	  	16
	 3
	    	Conditions precedent and utilisation	  	16
	 4
	    	Repayment	  	18
	 5
	    	Prepayment and cancellation	  	19
	 6
	    	Interest	  	22
	 7
	    	Interest Periods	  	24
	 8
	    	Market disruption	  	25
	 9
	    	Taxes	  	25
	 10
	    	Increased costs	  	28
	 11
	    	Payments	  	29
	 12
	    	Bank Accounts	  	31
	 13
	    	Representations	  	37
	 14
	    	Information covenants	  	42
	 15
	    	General covenants	  	43
	 16
	    	Property covenants	  	47
	 17
	    	Default	  	53
	 18
	    	Security and Security Agent	  	56
	 19
	    	Evidence and calculations	  	59
	 20
	    	Fees and indemnities	  	59
	 21
	    	Expenses	  	60
	 22
	    	Amendments and waivers	  	61
	 23
	    	Changes to the Parties	  	62
	 24
	    	Disclosure of information	  	63
	 25
	    	Set-Off	  	64
	 26
	    	Severability	  	64
	 27
	    	Counterparts	  	64
	 28
	    	Notices	  	64
	 29
	    	Governing law	  	65
	 30
	    	Limitation of liability	  	65
	 31
	    	Enforcement	  	66
		
	 SCHEDULE 1 THE PROPERTY
	  	67
	 SCHEDULE 2
	  	68
	 CONDITIONS PRECEDENT DOCUMENTS TO BE DELIVERED BEFORE THE REQUEST
	  	68
	 SCHEDULE 3 MANDATORY COSTS
	  	73
	 SCHEDULE 4 FORM OF REQUEST
	  	76
	 SCHEDULE 5 FORM OF TRANSFER CERTIFICATE
	  	78
	 SCHEDULE 6 FORM OF COMPLIANCE CERTIFICATE
	  	81
	 SCHEDULE 7 ROLL-OVER NOTICE
	  	82
	 SCHEDULE 8 FORM OF TERM OUT NOTICE
	  	83
	 SCHEDULE 9 AMORTISATION SCHEDULE
	  	84
	 SCHEDULE 10 Net Operating Income
	  	85

 THIS AGREEMENT is dated
                    , 2006 
 BETWEEN: 
  

	(1)	GROSVENOR SQUARE HOTEL S.A.R.L (a company incorporated in Luxembourg with company number B94377) whose registered office is at Rue Eugene Ruppert, L-2453 Luxembourg (the
Borrower); 

  

	(2)	BARCLAYS BANK PLC as lender (the Original Lender); 

  

	(3)	BARCLAYS CAPITAL MORTGAGE SERVICING LIMITED as security agent (in this capacity the Security Agent); and 

  

	(4)	LOMAR HOTEL COMPANY LTD (company number 2400561) whose registered office is at 88 Wood Street, London, EC2V 7AJ (the Guarantor). 

 IT IS AGREED as follows: 
  

	1	INTERPRETATION 

  

	1.1	Definitions 

 In this Agreement: 
 Acceptable Subordination Language means: 
  

	 	(a)	the rights and obligations of the parties to this Agreement are subject and subordinate to the rights of Barclays Capital Mortgage Servicing Limited in its capacity as security
agent and the lenders under a Facility Agreement dated [                    ] 2006 between, inter alia, Grosvenor Square Hotel S.A.R.L as borrower,
Barclays Bank PLC as original lender, Barclays Capital Mortgage Servicing Limited as security agent and Lomar Hotel Company Limited as guarantor (the “Barclays Loan”). The parties to the Agreement shall be entitled to perform their
respective obligations and to receive the benefit of their respective rights under this Agreement at all times prior to receiving notice in writing from Barclays Capital Mortgage Servicing Limited that an Event of Default (as defined in the Barclays
Loan) has occurred and is continuing; and 

  

	 	(b)	except for Barclays Capital Mortgage Servicing Limited in its capacity as security agent and the lenders under the Barclays Loan, any person who is not a party hereto has no right
under the Contracts (Rights of Third Parties) Act 1999 to enforce or enjoy the benefit of any term of this Agreement. The consent of any person who is not a party hereto is not required to rescind or vary this Agreement at any time.

 Account means the General Account, the Operating Account, the Guarantor General Account and the Guarantor Operating
Account all of which shall be interest bearing account. 
 Actual Interest Cover means as at 15 January 2007, 15 April 2007,
15 July 2007 and 15 October 2007 and thereafter on each Interest Payment Date, the ratio of Net Operating Income calculated on an annual historical rolling average basis to Interest Costs for the Relevant Period ending on the immediately
preceding Quarter Date. The ratio calculated for 
  

 1 

 the first three calculation dates shall be the actual figures since the first Utilisation Date multiplied
by X where: X = 12 divided by the number of calendar months which have elapsed since the first Utilisation Date as at that calculation date. 
 Affiliate means a Subsidiary or a Holding Company of a person or any other Subsidiary of that Holding Company. 
 Agreement
for Lease means an agreement to grant an Occupational Lease of all or part of the Building. 
 Amortisation Schedule means the
schedule of Repayment Instalment set out in Schedule 9 (Amortisation Schedule). 
 Availability Period means the period from and
including the date of this Agreement to and including the last Business Day which is not more than 364 days from and including the date of this Agreement. 
 BRE/ Grosvenor means BRE/Grosvenor Shareholder S.A.R.L., a company incorporated in Luxembourg whose registered office is at 20, Rue Eugene Ruppert, L-2453, Luxembourg. 
 Break Costs means the amount (if any) which a Lender is entitled to receive under sub-clause 20.3 (Break Costs). 
 Building means land and buildings located at the London Marriott Hotel, 10-13 Grosvenor Square and 84 Duke Street, London, W1K 6JP. 
 Business means the business of a hotel carried on at the Building by the Guarantor and operated for it by the manager under the Management
Agreement and with the benefit of the IHLC Agreements. 
 Business Day means a day (other than a Saturday or a Sunday) on which banks
are open for general business in London. 
 Centre of Main Interests means, in relation to the Borrower, its “centre of main
interests” for the purposes of Council Regulation (EC) No 1346/2000 of 29th May, 2000. 
 Commitment means: 
  

	 	(a)	for the Original Lender, £77,250,000; and 

  

	 	(b)	for any other Lender, the amount of any Commitment it acquires, 

 to the extent not cancelled, transferred or reduced under this Agreement. 
 Compliance Certificate means a certificate,
substantially in the form of Schedule 6 (Form of Compliance Certificate) in respect of the Relevant Period ending on the immediately preceding Quarter Date. 
 Counterparty means Barclays Bank Plc or such other bank or financial institution acceptable to the Security Agent which becomes a Counterparty after the date of this Agreement . 
 Default means: 
  

	 	(a)	an Event of Default; or 

  

 2 

	 	(b)	an event which would be (with the expiry of a grace period, the giving of notice or the making of any determination under the Finance Documents or any combination of them) an Event
of Default. 

 Disclosure Letter means the disclosure letter dated 28 July 2006 from BRE/Europe 2, S.A.R.L.
addressed to Pingleton. 
 Establishment means, in relation to a company, any place of operations where that company carries on
non-transitory economic activity with human means and goods. 
 Event of Default means an event specified as such in Clause 17
(Default). 
 Facility means the credit facility made available under this Agreement. 
 Facility Office means the office(s) of a Finance Party through which it will perform its obligations under this Agreement. 
 Fee Letter means any letter entered into by reference to this Agreement between one or more Finance Parties and the Borrower setting out the amount
of certain fees referred to in this Agreement. 
 Final Maturity Date means the last Business Day which is not more than 364 days from
and including the date of this Agreement subject to alteration under clause 4.4(a) (Term-out Option and Amortisation). 
 Finance
Document means: 
  

	 	(a)	this Agreement; 

  

	 	(b)	a Security Document; 

  

	 	(c)	any Hedging Arrangement; 

  

	 	(d)	the Hedging Strategy Letter; 

  

	 	(e)	the Subordination Agreement 

  

	 	(f)	the Non-Disturbance Agreement; 

  

	 	(g)	a Transfer Certificate; 

  

	 	(h)	a Fee Letter; or 

  

	 	(i)	any other document designated as such by the Security Agent and the Borrower. 

 Finance Party means a Lender or the Security Agent and any other party to a Finance Document (other than an Obligor) designated in writing as a Finance Party from time to time by the Security Agent. 

General Account means the account designated as such under the terms of this Agreement. 
  

 3 

 Guarantor General Account means the account designated as such under the terms of this Agreement.

 Guarantor Operating Account means the account designated as such under the terms of this Agreement. 
 Guarantor Security Agreement means a security agreement between the Guarantor and the Security Agent in the agreed form. 
 Headlease means the underlease of the Building dated 23 February 1965 between Princes Investments Limited (1) and Grand Metropolitan
Hotels Limited (2) as varied by a deed of variation dated 1 April 1970 between Princes Investments Limited (1) and Europa Hotel (London) Limited which is registered at the Land Registry with Title Absolute under title number LN248520.

 Hedging Arrangement means any interest hedging arrangements entered into by the Borrower in connection with interest payable under
this Agreement and in accordance with the Hedging Strategy Letter. 
 Hedging Strategy Letter means a letter from the Borrower to the
Lender dated on or about the date of this agreement, pursuant to paragraph 8(a) of Schedule 2, setting out the Borrower’s strategy for hedging the interest payable under this agreement under a Hedging Arrangement. 
 Holding Company means in relation to a company or corporation, any other company or corporation in respect of which it is a Subsidiary. 

IHLC means International Hotel Licensing Company S.A.R.L. a corporation organised and existing under the Laws of Luxembourg, acting through its
branch in Zurich, Switzerland. 
 IHLC Agreements means each and together an Overseas Service Agreement dated 8 September 1989 and
a License and Royalty Agreement dated 8 September 1989 as amended by an amendment and restatement agreement dated 5 September 2003, and as amended from time to time, the current parties to which are IHLC (1) and the Guarantor
(2) including any supplements and variations of them. 
 Increased Cost means: 
  

	 	(a)	an additional or increased cost; 

  

	 	(b)	a reduction in the rate of return from the Facility or on a Finance Parties overall capital; or 

  

	 	(c)	a reduction of an amount due and payable under any Finance Document, 

 which is incurred or suffered by a Finance Party but only to the extent attributable to a Lender having entered into any Finance Document or a Finance Party funding or performing its obligations under any Finance
Document. 
 Initial Valuation means the Valuation supplied to the Lenders as a condition precedent under this Agreement on or before
the first Utilisation Date. 
  

 4 

 Interest Costs means interest accrued on any financial debt under this Agreement plus payments
accrued under any Hedging Arrangement, less interest earned on any financial asset, less payments received under any Hedging Arrangement. 
 Interest Payment Date means the last day of each Interest Period until the first Final Maturity Date and if the Borrower exercises the term-out option provided in clause 4.4(a) after that 15th January, 15th April, 15th July and 15th October in each year and the Final Maturity Date as adjusted in accordance with clause 4.4(a), with the first such Interest Payment Date being
15th October 2007. If, however, any such day is not a Business Day, the Interest Payment Date will instead be
the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not). 
 Interest Period
means in relation to a Loan, before the first Final Maturity Date the period of one (1) or three (3) months specified in the Request for the Loan or in a subsequent Roll-over Notice under Clause 4.2 (Roll-over Notice). 
 Lease Document means: 
  

	 	(a)	an Agreement for Lease; 

  

	 	(b)	an Occupational Lease; or 

  

	 	(c)	any other document designated as such by a Lender and the Borrower. 

 Lender means: 
  

	 	(a)	the Original Lender; or 

  

	 	(b)	any person which becomes a Lender after the date of this Agreement. 

 LIBOR means for an Interest Period of any Loan or overdue amount: 
  

	 	(a)	the applicable Screen Rate; or 

  

	 	(b)	if no Screen Rate is available for the relevant currency or Interest Period of that Loan or overdue amount, 

  

	 	    	the arithmetic mean (rounded upward to four decimal places) of the rates, as supplied to the Security Agent at its request, quoted by the Reference Banks to leading banks in the
London interbank market, 

 as of 11.00 a.m. on the Rate Fixing Day for the offering of deposits in the currency of that Loan or
overdue amount for a period comparable to that Interest Period. 
 Loan means, unless otherwise stated in this Agreement, the principal
amount of a borrowing under this Agreement or the principal amount outstanding of that borrowing. 
 Loan to Value means at any time
the amount of the Senior Liabilities expressed as a percentage of the Open Market Value. 
 Lomar Holdco means Lomar Holding U.K. Ltd
(company number 5886873) whose registered office is at 88 Wood Street, London, EC2V 7AJ. 
  

 5 

 Lomar Holdco Share Charge means the share charge over the Guarantor to be granted in favour of the
Security Agent by Lomar Holdco in the agreed form. 
 Maintenance Reserve Account means an account opened and/or maintained in the name
of the Guarantor and operated by the Manager in accordance with the Management Agreement for the purpose of holding a maintenance fund reserve, and any replacement of such account. 
 Majority Lenders means: 
  

	 	(a)	if no Loan is outstanding, a Lender or Lenders whose commitments aggregate more than two-thirds of the Facility (or if the Facility has been reduced to zero, aggregated more than
two thirds of the Facility immediately prior to the reduction); or 

  

	 	(b)	at any other time, a Lender or Lenders, whose participation in the Loans then outstanding aggregate more than two-thirds of the Loans then outstanding. 

 Manager means Marriott Hotels Limited or such other person approved by the Security Agent appointed or to be appointed as a manager of the Building
and the Business under the Management Agreement. 
 Management Agreement means the amended and restated management agreement dated
5 September 2003 between the Guarantor (1) and the Manager (2) as amended by a first amendment agreement dated on or about the date of this agreement and the transfer of employment of employees agreement dated 1 August 2006
between the Guarantor (1) and the Manager (2) and any amendment, variation, novation or replacement of either of them approved by the Security Agent in accordance with the terms of this agreement. 
 Mandatory Costs means the percentage rate per annum calculated by the Security Agent in accordance with Schedule 3 (Calculation of Mandatory
Costs). 
 Margin means 1.10 per cent. per annum. 
 Material Adverse Effect means a change in the business or financial condition of the Borrower or the Guarantor which has a material adverse effect on the ability of the Borrower or the Guarantor to perform its
obligations under any Finance Document. 
 Minimum Prepayment Amount means five hundred thousand pounds (£500,000). 

Net Operating Income means: 
  

	 	(a)	any income generated by the Business; plus 

  

	 	(b)	any other rental income net of VAT; 

 less: 
  

	 	(a)	costs (excluding capital expenditure) paid by a Borrower in connection with any repair, maintenance or similar obligations relating to the Building for that period;

  

	 	(b)	fees accrued in connection with services related to the Building, including any management, incentive, property, facility; 

  

 6 

	 	(c)	insurance premiums and; and 

  

	 	(d)	property taxes accrued from time to time. 

 Net Rental
Income means Rental Income other than Tenant Contributions. 
 Non-Disturbance Agreement the non-disturbance agreement between the
Security Agent (1) the Guarantor (2) IHLC (3) and Marriott Hotels Limited (4) in the agreed form . 
 Obligors
means each and together the Borrower and the Guarantor. 
 Occupational Lease means any lease or licence or other right of
occupation or right to receive rent to which the Operating Lease may at any time be subject. 
 Open Market Value means the value of
the Building as determined on the basis of a valuation by the Valuer of the market value as that term is defined in the then current Statement of Asset valuation Practice and Guidance Notes issued by the Royal Institution of Chartered Surveyors, as
the Building is comprised in the Headlease and the Operating Lease and is subject to the terms of the Occupational Leases, the Management Agreement and the Non-Disturbance Agreement. 
 Operating Account means the account designated as such under the terms of this Agreement. 
 Operating Lease means the underlease of the Building dated 8 September 1989 between Marquis Hotels Limited and the Guarantor as amended by a
supplemental deed dated 29 July 1991 between Marquis Hotels Limited (1), Chester Eaton Properties B.V. (2) and the Guarantor (3) and a deed of variation dated 26 October 1995 between Marquis Hotels Limited (1) and the
Guarantor (2) a deed of variation dated 26 February 2003 between Chester Eaton Properties B.V. (1) and the Guarantor (2) and a deed of variation dated on or about the date of this agreement between the Borrower (1) and the
Guarantor (2) in the agreed form under which the Guarantor occupies the Building which is registered at the Land Registry with Title Absolute under title number NGL645572. 
 Parent means Strategic Hotels & Resorts, Inc. a real estate investment trust having its principal place of business at 77 West Wacker,
Suite 4600, Chicago, Illinois 60601 USA. 
 Party means a party to this Agreement. 
 Permitted Indebtedness means: 
  

	 	(a)	indebtedness contemplated by the Finance Documents; 

  

	 	(b)	indebtedness in respect of trade or other indebtedness incurred by the Guarantor only in the ordinary course of the Business and which is not more than 30 days due;

  

	 	(c)	indebtedness subordinated on terms satisfactory to the Security Agent, including the Subordinated Loan; 

  

	 	(d)	indebtedness any other indebtedness to which the Security Agent gives its consent; 

  

 7 

	 	(e)	between members of the group of companies to which the Obligors and Pingleton belong or the group of companies to which the Parent belongs under loan agreements containing
Acceptable Subordination Language; and/or 

  

	 	(f)	the guarantee provided or to be provided by the Borrower in respect of certain liabilities under the London Marriott (1983) Retirement Fund. 

 Permitted Letting means any sub-letting, licences and/or concession agreements (which in the cases of licences and concession agreements do not
confer tenure) entered into in accordance with the provisions of the Management Agreement and which: 
  

	 	(a)	are entered into with third parties (excluding any Subsidiary or Holding Company of the Obligors, BRE/ Grosvenor or Pingleton) on an arms’ length basis; and

  

	 	(b)	are at market rent and not containing any premium. 

 Permitted Payment means any payment out of the General Account or the Guarantor General Account not expressly prohibited by any provision of this Agreement. 
 Permitted Reorganisation means the corporate reorganisation of the group of companies to which the Obligors, BRE/ Grosvenor and Pingleton belong as
described in the Steps Plan. 
 Pingleton means Pingleton Holding S.A.R.L a company organised and existing under the laws of Luxembourg
whose registered number is B114490. 
 Pingleton Share Pledge means the Luxembourg law deed of pledge over the share capital of the
Borrower to be granted in favour of the Security Agent by Pingleton in the agreed form. 
 Pingleton Share Pledge (BRE/Grosvenor) means
the Luxembourg law deed of pledge over the share capital of BRE/Grosvenor granted in favour of the Security Agent by Pingleton in the agreed form. 
 Pingleton Security Agreement means the security agreement granted in favour of the Security Agent by Pingleton in the agreed form. 
 Projected Interest Cover means, as at a calculation date, projected Net Operating Income as a percentage of projected interest costs, in each case as at that calculation date. For the purposes of this definition: 
  

	 	(a)	calculation date means the Utilisation Date and the date of service of notice by the Borrower on the Security Asset pursuant to clause 4.2 (Term-out Option and Amortisation);

  

	 	(b)	projected interest costs on any calculation date means the Lenders’ estimate of the Interest Cost payable by the Borrower to the Finance Parties under the Finance
Documents (other than under Clause 4 (Repayment)) for the period of 12 months following that calculation date; and 

  

	 	(c)	projected Net Operating Income on any calculation date means the Borrower’s projection of the Net Operating Income as set out in Schedule 10 for the period of 12 months
following that calculation date. 

  

 8 

 Property means the property described in Schedule 1 where the context so requires, including the
buildings on the Property. 
 Pro Rata Share means for the purpose of determining a Lender’s share in a utilisation of the
Facility, the proportion which its Commitment bears to the Total Commitments. 
 Qualifying Lender means a Lender which is:

  

	 	(a)	a U.K. Lender; 

  

	 	(b)	a Treaty Lender; or 

  

	 	(c)	a building society which is entitled to receive interest under this Agreement without deduction or withholding for or on account of U.K. income tax pursuant to section 477A(7)
of the Taxes Act. 

 Quarter Dates means 31 March, 30 June, 30 September and 31 December in each
year. 
 Rate Fixing Date means the first day of an Interest Period or such other day as the Security Agent and the Borrower may agree.

 Reference Banks means the Facility Agent, The Royal Bank of Scotland plc and Citibank International plc (which trades as Citibank in
the United Kingdom) and any other bank or financial institution appointed as such by the Facility Agent under this Agreement. 
 Relevant
Period means each period of twelve months (or if shorter) the period from the first Utilisation Date ending on a Quarter Date. 
 Rental Income means the aggregate of all amounts paid or payable to or for the account of the Borrower or, as the case may be, the Guarantor in connection with the Operating Lease, the Management Agreement and any Occupational Leases
including each of the following amounts to the extent applicable: 
  

	 	(a)	rent, licence fees and equivalent amounts paid or payable; 

  

	 	(b)	any sum received or receivable from any deposit held as security for performance of a tenant’s obligations; 

  

	 	(c)	a sum equal to any apportionment of rent allowed in favour of the Borrower; 

  

	 	(d)	any other moneys paid or payable in respect of occupation and/or usage of the Building and any fixture and fitting on the Building including any fixture or fitting on the Building
for display or advertisement, on licence or otherwise; 

  

	 	(e)	any sum paid or payable under any policy of insurance in respect of loss of rent or interest on rent; 

  

	 	(f)	if such surrender or variation is permitted under this Agreement and subject to any conditions which may apply to that permission, any sum paid or payable, or the value of any
consideration given, for the surrender or variation of any Lease Document; 

  

	 	(g)	any sum paid or payable by any guarantor of any occupational tenant under any Lease Document; 

  

 9 

	 	(h)	any Tenant Contributions; and 

  

	 	(i)	any interest paid or payable on, and any damages, compensation or settlement paid or payable in respect of, any sum referred to above less any related fees and expenses incurred
(which have not been reimbursed by another person) by the Borrower in connection with such changes, compensation or settlement; 

 Provided that there shall be no double counting of any Rental Income under the Operating Lease, the Management Agreement and the Occupational Lease for the purposes of any calculations under this agreement. 
 Repayment Instalment means each instalment for repayment of the Loan under Clause 4 (Repayment) and as set out in schedule 9 (Amortisation
Schedule). 
 Repeating Representations means the representations which are deemed to be repeated under the Finance Documents.

 Report on Title means any report or certificate on title supplied to the Lenders as a condition precedent under this Agreement on or
before the Utilisation Date. 
 Request means a request for a Loan, substantially in the form of Schedule 3 (Form of Request).

 Reservations means each and all of the following reservations that: 
  

	 	(a)	equitable remedies may be granted or refused at the discretion of the court; 

  

	 	(b)	there are limitations on enforcement by laws relating to insolvency generally and other laws generally affecting the rights of creditors; 

  

	 	(c)	there is time barring of claims under the Limitation Act 1980; 

  

	 	(d)	there is the possibility that an undertaking to assume liability for or to indemnify against non-payment of United Kingdom stamp duty may be void; 

  

	 	(e)	any payment made in compensation for a breach of the Finance Documents may be a penalty and may not be enforceable in whole or in part; 

  

	 	(f)	any legal principal similar to those set out in paragraphs (a) to (e) above which apply under the laws of Luxembourg and which are set out in legal opinions referred to in
paragraph 1.6 of schedule 4; 

  

	 	(g)	there may be defences of set-off or counterclaim (provided that nothing is this definition purports to grant the Obligors, BRE/ Grosvenor or Pingleton any such right and is without
prejudice to any restriction contained in the Finance Documents) and similar principles, rights and defences under the laws of any foreign jurisdictions in which relevant obligations may have to be performed; 

  

	 	(h)	the principle that the English courts may not recognise any of the fixed Security expressed to be constituted by the Security Documents to be by way of fixed charge since they may
hold such Security to be by way of floating charge; and 

  

	 	(i)	presentation of Security Documents for registration at any applicable registry and any other steps necessary to perfect a Security Interest where such steps are not required to be
performed under the terms of any Finance Document until a future date; 

  

 10 

	 	(j)	an indemnity provision entitling one party to recover legal and other enforcement costs and expenses from another party may be restricted in terms of items or amounts as a
Luxembourg court deems appropriate; 

  

	 	(k)	the question as to whether a provision which may be held to be invalid, illegal or unenforceable may be severed from the other provisions thereof in order to save those other
provisions would be decided by the Luxembourg courts in their discretion; 

  

	 	(l)	a provision which permits the taking of proceedings in one or more jurisdictions shall not preclude the taking of concurrent proceedings in any other jurisdictions may not be
enforceable in a Luxembourg court; 

  

	 	(m)	a provision allowing the service of process against a company to a service agent could be overriding by a Luxembourg statutory provision allowing the valid service of process
against the said company in accordance with applicable laws at its domicile. If the designation of a service agent constituted (or where deemed to constitute) a power of attorney or mandate (mandate), whether or not irrevocable, it will
terminate by force or law, and without notice, upon the occurrence of insolvency events affecting the company. 

 Roll-over
Date means the last day of each Interest Period in respect of a Loan occurring before the first Final Maturity Date. 
 Roll-over
Notice means the notice substantially in the form of schedule 7 (Roll-over Notice). 
 Screen Rate means the British Bankers
Association Interest Settlement Rate for the relevant currency and Interest Period displayed on the appropriate page of the Telerate screen selected by the Security Agent. If the relevant page is replaced or the service ceases to be available, the
Security Agent (after consultation with the Borrower and the Lenders) may specify another page or service displaying the appropriate rate. 
 Security means the Security Interests created under the Security Documents. 
 Security Agreement means a security
agreement between the Borrower and the Security Agent in the agreed form. 
 Security Document means: 
  

	 	(a)	the Security Agreement; 

  

	 	(b)	the Pingleton Security Agreement; 

  

	 	(c)	the Pingleton Share Pledge (BRE/Grosvenor); 

  

	 	(d)	the Share Pledge; 

  

	 	(e)	the Guarantor Security Agreement; 

  

	 	(f)	the Pingleton Share Pledge; 

  

 11 

	 	(g)	the Lomar Holdco Share Charge; 

  

	 	(h)	any other document evidencing or creating security over any asset of the Borrower to secure any obligation of the Borrower to a Finance Party under the Finance Documents; or

  

	 	(i)	any other document designated as such by the Security Agent and the Borrower. 

 Security Interest means any mortgage, pledge, lien, charge, assignment, hypothecation or security interest or any other agreement or arrangement having a similar effect. 
 Senior Liabilities means all present and future sums, liabilities and obligations payable or owing by the Borrower to the Finance Parties (whether
actual or contingent, jointly or severally or otherwise) under or in connection with the Finance Documents. 
 Share Pledge the
Luxembourg law deed of pledge over the share capital of the Borrower granted in favour of the Security Agent by BRE/ Grosvenor in the agreed form. 
 Share Purchase Agreement means the agreement dated 28 July 2006 between BRE/Europe 2 S.A.R.L (1) and Pingleton Holding S.A.R.L (2) in respect of the entire issued share capital of BRE/Grosvenor Shareholder S.A.R.L by
Pingleton Holding S.A.R.L. 
 Steps Plan means the outline of corporate authorisations and approvals required to effect the Permitted
Reorganisation in the agreed form. 
 Subordinated Loan means any loan made by BRE/ Grosvenor to the Borrower or the Guarantor and any
loan made by either the Guarantor and the Borrower to the other, which are subject to the terms of the Subordination Agreement. 
 Subordination Agreement means a subordination agreement between the BRE/ Grosvenor, the Borrower, the Guarantor, the Lenders and the Security Agent in the agreed form. 
 Subsidiary means an entity of which a person has direct or indirect control or owns directly or indirectly more than 50 per cent. of the
voting capital or similar right of ownership and control for this purpose means the power to direct the management and the policies of the entity whether through the ownership of voting capital, by contract or otherwise. 
 Superior Lease means the lease dated 23 February 1965 between the Trustees of the London Settled Estate of the most noble the 2nd Duke of Westminster (deceased) (1) and Princes Investments Limited (2) and registered with title number LN248516
(now assigned to Marriott Hotels Limited pursuant to a deed dated 17 November 1986) out of which the Head Lease is granted. 
 Tax
means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any related penalty or interest). 
 Tax
Credit means a credit against any Tax or any relief or remission for Tax (or its repayment). 
 Tax Deduction means a deduction or
withholding for or on account of Tax from a payment under a Finance Document. 
  

 12 

 Tax Payment means a payment made by the Borrower to a Finance Party in any way relating to a Tax
Deduction or under any indemnity given by the Borrower in respect of Tax under any Finance Document. 
 Taxes Act means the Income and
Corporation Taxes Act 1988. 
 Tenant Contributions means any amount paid or payable to the Borrower by any tenant under a Lease
Document or any other occupier of the Building under any interest which is inferior to the Headlease, by way of: 
  

	 	(a)	contribution to: 

  

	 	(i)	insurance premiums; 

  

	 	(ii)	the cost of an insurance valuation; 

  

	 	(iii)	a service charge in respect of the Borrower’s costs under any repairing or similar obligation or in providing services to a tenant of, or with respect to, the Building; or

  

	 	(iv)	a sinking fund; or 

  

	 	(b)	value added tax or similar taxes. 

 Term-out Date
means the date of receipt by the Security Agent of a valid Term-out Notice. 
 Term-out Notice means the notice to term-out the
revolving loans substantially in the form in Schedule 8. 
 Total Commitments means the aggregate of the Commitments of all the
Lenders. 
 Transaction Document means: 
  

	 	(a)	a Finance Document; 

  

	 	(b)	a Lease Document; 

  

	 	(c)	the Share Purchase Agreement; 

  

	 	(d)	the Disclosure Letter, 

  

	 	(e)	the Steps Plan; or 

  

	 	(f)	any other document designated as such by a Lender and the Borrower. 

 Transfer Certificate means a certificate, substantially in the form of Schedule 5 (Form of Transfer Certificate), with such amendments as the Lenders may approve or require or any other form agreed between the
Lenders and the Borrower. 
  

 13 

 Treaty Lender means a Lender which is, on the date a payment of interest falls due under this
Agreement: 
  

	 	(a)	resident (as defined in the appropriate double taxation agreement) in a country with which the U.K. has a double taxation agreement giving residents of that country full exemption
from U.K. taxation on interest; and 

  

	 	(b)	does not carry on a business in the U.K. through a permanent establishment with which the payment is effectively connected. 

 U.K. Lender means a Lender which is: 
  

	 	(a)	within the charge to U.K. corporation tax in respect of, and beneficially entitled to, a payment of interest on the Loan made by a person that was a bank for the purposes of section
349 of the Taxes Act (as currently defined in section 840A of the Taxes Act) at the time the Loan was made; or 

  

	 	(b)	a U.K. Non-Bank Lender. 

 U.K. Non-Bank Lender
means: 
  

	 	(a)	a company resident in the U.K. for U.K. tax purposes; 

  

	 	(b)	a partnership, each member of which is a company resident in the U.K. for U.K. tax purposes or a company not resident in the U.K. for U.K. tax purposes but which carries on a trade
in the U.K. through a permanent establishment and brings into account in computing its chargeable profits (for the purpose of section 11(2) of the Taxes Act) the whole of any share of interest payable to it under this Agreement which falls to
it by reason of sections 114 and 115 of the Taxes Act; or 

  

	 	(c)	a company not resident in the U.K. for U.K. tax purposes which carries on a trade in the U.K. through a permanent establishment and brings into account interest payable to it under
this Agreement in computing its chargeable profits for the purpose of section 11(2) of the Taxes Act, 

 which, in each case, is
beneficially entitled to interest payable to it under this Agreement and which has provided to the Borrower and not retracted confirmation of one of the above in accordance with this Agreement. 
 Utilisation Date means the date on which a Loan is borrowed by the Borrower. 
 Valuation means at any time the then most recent Open Market Valuation by the Valuer, addressed to the Finance Parties. 
 Valuer means Jones Lang LaSalle or any other surveyor or valuer appointed by the Lenders (acting reasonably). 
  

	1.2	Construction 

  

	(a)	In this Agreement, unless the contrary intention appears, a reference to: 

  

	 	(i)	an amendment includes a supplement, novation, restatement or re-enactment and amended will be construed accordingly; 

  

	 	(ii)	assets includes present and future properties, revenues and rights of every description; 

  

 14 

	 	(iii)	an authorisation includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration or notarisation; 

  

	 	(iv)	disposal means a sale, transfer, grant, lease or other disposal, whether voluntary or involuntary, and dispose will be construed accordingly; 

 

	 	(v)	indebtedness includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money including, without limitation, under any derivative
transaction or any other transaction which has the commercial effect of a borrowing; 

  

	 	(vi)	know your customer requirements are the identification checks that a Finance Party requests in order to meet its obligations under any applicable law or regulation to
identify a person who is (or is to become) its customer; 

  

	 	(vii)	a person includes any individual, company, corporation, unincorporated association or body (including a partnership, trust, joint venture or consortium), government, state,
agency, organisation or other entity whether or not having separate legal personality; 

  

	 	(viii)	a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law but, if not having the force of law, being of a
type with which any person to which it applies is accustomed to comply) of any governmental, inter-governmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; 

  

	 	(ix)	a Default being outstanding means that it has not been remedied or waived; 

  

	 	(x)	a provision of law is a reference to that provision as extended, applied, amended or re-enacted and includes any subordinate legislation; 

  

	 	(xi)	a Clause, a Subclause or a Schedule is a reference to a clause or subclause of, or a schedule to, this Agreement; 

  

	 	(xii)	a Party or any other person includes its successors in title, permitted assigns and permitted transferees; 

  

	 	(xiii)	a Finance Document or another document is a reference to that Finance Document or other document as amended; 

  

	 	(xiv)	a document being in an agreed form means that the form and content of the document have been approved by the Finance Parties and the Borrower; 

  

	 	(xv)	a report, opinion or other document being appropriately addressed means such report, opinion or other document is addressed in the manner required by the Lenders and notified
to the Borrower before the date of this Agreement; 

  

	 	(xvi)	a time of day is a reference to London time. 

  

	(b)	Unless expressly provided to the contrary in a Finance Document, a person who is not a party to a Finance Document may not enforce any of its terms under the Contracts (Rights of
Third Parties) Act 1999 and, notwithstanding any term of any Finance Document, no consent of any third party is required for any variation (including any release or compromise of any liability) or termination of any Finance Document.

  

 15 

	(c)	Unless the contrary intention appears: 

  

	 	(i)	a word or expression used in any other Finance Document or in any notice given in connection with any Finance Document has the same meaning in that Finance Document or notice as in
this Agreement; and 

  

	 	(ii)	any obligation of the Obligors, BRE/ Grosvenor or Pingleton under the Finance Documents which is not a payment obligation remains in force for so long as any payment obligation of
the Obligors, BRE/ Grosvenor or Pingleton is or may be outstanding under the Finance Documents. 

  

	(d)	The headings in this Agreement do not affect its interpretation. 

  

	(e)	Where the consent, permission or approval (“consent”) of the Obligors , BRE/ Grosvenor or Pingleton is required under the Management Agreement, the IHLC Agreements or any
Occupational Leases and under the terms of those agreements the Obligors , BRE/ Grosvenor or Pingleton are not entitled to unreasonably withhold or delay their consent, and where the consent of a Finance Party is also required under the Finance
Documents before the Obligors , BRE/ Grosvenor or Pingleton are able to give their consent under those agreements, then the relevant Finance Party shall not unreasonably withhold or delay its consent, provided that the Obligors , BRE/ Grosvenor or
Pingleton have provided the Security Agent with all documents and information reasonably requested by the Security Agent in sufficient time to enable the relevant Finance Party to reach a considered decision. 

  

	(f)	Where an Occupational Lease permits the relevant tenant to take or omit any action without the consent of BRE/ Grosvenor, Pingleton or the relevant Obligor, the consent of any
Finance Party will not be required under the Finance Documents in respect of such act or omission. 

  

	2	FACILITY AND PURPOSE 

  

	2.1	Facility 

 Subject to the terms of this Agreement,
the Lenders make available to the Borrower a 364 day revolving loan facility in an aggregate amount equal to the Total Commitments. Amounts borrowed under this Agreement may only be used for refinancing the existing facilities relating to the
acquisition of the Property, to provide working capital and finance for general corporate purposes. 
  

	2.2	Nature of a Lender’s rights and obligations 

 Unless otherwise agreed by all the Lenders, the obligations of a Lender under the Finance Documents are several and failure by a Lender to perform its obligations does not affect the obligations of any other party under the Finance
Documents. The rights of a Lender under the Finance Documents are separate and independent rights and a Lender may, except as otherwise stated in the Finance Documents, separately enforce those rights. A debt arising under the Finance Documents to a
Lender is a separate and independent debt. 
  

	3	CONDITIONS PRECEDENT AND UTILISATION 

  

	3.1	Documentary conditions precedent 

  

	(a)	The Lenders shall have no obligation to make a Loan unless and until the Security Agent has notified the Lenders and the Borrower that it has received all of the documents and

  

 16 

 evidence set out in Schedule 2 (Conditions precedent documents) in form and substance satisfactory to it.
The Security Agent must give this notification to the Borrower and the Lenders promptly upon being so satisfied. 
  

	(b)	If the Loan specified in a Request has not been utilised within ten (10) Business Days of the date of receipt of the Request, or such longer period as the Security Agent may
confirm in writing, then the Request will lapse. 

  

	3.2	Conditions subsequent 

 The Borrower covenants to
provide within the periods specified in part 2 of Schedule 2 each of the conditions subsequent set out therein in form and substance satisfactory to the Security Agent. 
  

	3.3	Number of Loans 

  

	(a)	The Borrower may not deliver a Request if as a result of the proposed Utilisation three or more Loans would be outstanding. 

  

	(b)	The Borrower may not request a Loan to be divided if, as a result of the division, three or more Loans would be outstanding. 

  

	3.4	Giving of Requests 

  

	(a)	The Borrower may borrow a Loan during the Availability Period by giving to the Security Agent a duly completed Request. A Request is irrevocable. 

  

	(b)	Unless the Security Agent otherwise agrees, the latest time for receipt by the Security Agent of a duly completed Request is 11.00 a.m. one Business Day before the Utilisation Date.

  

	3.5	Completion of Request 

  

	(a)	The Request will not be regarded as having been duly completed unless: 

  

	 	(i)	the Utilisation Date is a Business Day falling within the Availability Period; 

  

	 	(ii)	the amount of the Loan requested does not exceed the Total Commitments on the proposed Utilisation Date; and 

  

	 	(iii)	an Interest Period of one (1) or three (3) months is specified or if both are specified the amount of the Loan is allocated to each such period. 

 

	 	(iv)	the payment instructions are specified. 

  

	(b)	Not more than two Loans may be requested in a Request. 

  

	3.6	Further conditions precedent 

 The obligations of
the Lenders to make a Loan (which until the Term-out Date shall not include the roll-over of an existing Loan) are subject to the further conditions precedent that on both the date of a Request, the Utilisation Date: 
  

	(a)	the Repeating Representations are correct in all material respects; and 

  

 17 

	(b)	no Default is outstanding or would result from the making of the Loan. 

  

	3.7	Advance of the Loan 

  

	(a)	The Security Agent must promptly notify each Lender of the details of the requested Loan and the amount of its share in the Loan. 

  

	(b)	The amount of each Lender’s share of the Loan will be its Pro Rata Share on the proposed Utilisation Date. 

  

	(c)	Subject to the terms of this Agreement, each Lender shall make its share in the Loan available to the Borrower on each Utilisation Date. 

  

	4	REPAYMENT 

  

	4.1	Revolving Loans 

 Each Loan shall be repaid on the
Roll-over Date relating to such Loan and then, shall subject to the terms of this agreement, be available for further utilisation. 
  

	4.2	Roll-over Notice 

 If the Borrower wishes at any
time before exercise of the term-out option under clause 4.4 (Term-out option and amortisation) to divide, consolidate or repay a Loan it shall give the Security Agent a Roll-over Notice not less than two (2) Business Days before the
next Roll-over Date and the Borrower shall prepay the amount of any prepayment specified in the Roll-over Notice and the Loans shall be allocated accordingly. If on a Roll-Over Date no Roll-over Notice has been received, and no Event of Default has
occurred which is continuing, the Loans shall deemed to have been repaid and redrawn on that Roll-over Date for the same Interest Period. 
  

	4.3	Repayment 

 The Borrower must repay the outstanding
amount of the Loan, together with all other amounts outstanding under the Finance Documents, in full to the relevant Finance Parties on the Final Maturity Date. 
  

	4.4	Term-out option and amortisation 

  

	(a)	Provided that: 

  

	 	(i)	no Event of Default has occurred and is continuing; and 

  

	 	(ii)	the implementation of the Hedging Arrangement, in accordance with the Hedging Strategy Letter, to the satisfaction of the Security Agent, acting reasonably;

 the Borrower may not less than ten (10) Business Days before the first Final Maturity Date serve a Term-out Notice of
the whole or part of the Loans, specifying the whole, or the amount of the Loans to be termed out and on receipt by the Security Agent of (a) the Term-out Notice, and (b) the Term-out fee specified in clause 20.1 (Arrangement fee and
Term-out fee) on or before the first Final Maturity Date then the Final Maturity Date in respect of the amount of the Loans termed-out shall be 15 October 2013 and if it is not a Business Day it shall be the preceding Business Day and the
remaining provisions of this clause 4.4 shall apply. 
  

 18 

	(b)	Any Loans not termed-out, under paragraphs (a) and (b) above, and outstanding on the Term-out Date shall be repaid, together with all other amounts relating to the Loans,
outstanding under the Finance Documents, in full to the relevant Finance Parties on the first Final Maturity Date. 

  

	(c)	The Borrower must repay the Loan on the dates and in the amounts specified in the Amortisation Schedule after the Term-out Date the Borrower must repay the then outstanding amount
of the Loan, together with all other amounts outstanding under the Finance Documents, in full to the relevant Finance Parties on the Final Maturity Date (as defined in sub-clause 4.4(a) above). 

  

	5	PREPAYMENT AND CANCELLATION 

  

	5.1	Mandatory prepayment - illegality 

  

	(a)	A Lender must notify the Borrower promptly if it becomes aware that it is unlawful in any jurisdiction for the Lender to perform any of its obligations under a Finance Document or
to fund or maintain its share in the Loan. 

  

	(b)	After notification under paragraph (a) above: 

  

	 	(i)	the Borrower must repay or prepay the Lender’s share of the Loan on the date specified in paragraph (c) below; and 

  

	 	(ii)	the Commitment of the Lender will be immediately cancelled. 

  

	(c)	The date for repayment or prepayment of the Lender’s share of the Loan will be: 

  

	 	(i)	the next Interest Payment Date; or 

  

	 	(ii)	if earlier, the date specified by the Lender in the notification under paragraph (a) above, which must not be earlier than the last day of any applicable grace period allowed
by law. 

  

	5.2	Mandatory prepayment - change of control 

  

	(a)	For the purposes of this Clause: 

 a change of
control occurs if: 
  

	 	(i)	prior to the Proposed IPO becoming effective, any person or persons acting in concert acquires more than 50% of the ordinary share capital of the Pingleton; or

  

	 	(ii)	after the Proposed IPO becoming effective, any person or persons acting in concert (other than the Parent or any of its Subsidiaries) acquires more than 50% of the ordinary share
capital of Newco. 

 PROVIDED ALWAYS THAT a Permitted Transfer shall not constitute a change of control for the purposes of this
clause 5.2; 
 acting in concert means acting together pursuant to an agreement or understanding (whether formal or informal);

  

 19 

 control means the power to direct the management and policies of an entity, whether through the
ownership of voting capital, by contract or otherwise; and 
 Permitted Transfer means: 
  

	 	(i)	any direct or indirect transfer, contribution, assignment or conveyance of the entire share capital of the Obligors or of any ultimate or intermediate
holding company of the Obligors (including Pingleton) provided that the ultimate control of the Obligors remains vested in the Parent or any of its direct or indirect Subsidiaries following any such transfer, contribution, assignment or
conveyance; 

  

	 	(ii)	any direct or indirect transfer, contribution, assignment or conveyance of the issued share capital of the Obligors or any ultimate or intermediate holding company of
the Obligors (including Pingleton) or the assets of the Obligors or the assets of any ultimate or intermediate holding company of the Obligors (including Pingleton) to a partnership, joint venture or other analogous structure so long as
the Parent or any of its Subsidiaries retains, directly or indirectly, (A) at least a 15% interest in such structure following any such transfer, contribution, assignment or conveyance; and (B) the Parent or any of its Subsidiaries shall
continue to provide services to such structure in respect of the management and operation of its assets; or 

  

	 	(iii)	the transfer, contribution or conveyance of the entire share capital of the Obligors or any ultimate or intermediate holding company of the Obligors (including Pingleton) to a
newly formed entity (“Newco”), or the transfer to a Subsidiary of either Obligor, in connection with the proposed admission of the securities of Newco to trading on a regulated market (the “Proposed
IPO”) provided always that, in the case of this sub-paragraph (iii), and with effect from the Proposed IPO, (A) the Parent or a Subsidiary thereof, shall retain, directly or indirectly, no less than 15% of the issued securities in
Newco; and (B) the Parent or any of its Subsidiaries shall continue to provide services to Newco or its Subsidiaries (the “Newco Group”) in respect of the management and operation of the assets of the Newco Group:

 Provided that prior to any such transfer as contemplated in sub-paragraphs (i) to (ii) above, the Borrower delivers
to the Lenders: 
  

	 	(a)	full details of the owners and controllers of any proposed transferee to satisfy all “know your customer” requirements of the Lenders; and 

  

	 	(b)	evidence demonstrating that the proposed transferee is or its owners or controllers are of good repute and standing in the UK and/or international real estate market.

  

	(b)	The Borrower must promptly notify the Lenders if it becomes aware of any change of control. 

  

	(c)	If a change of control occurs, the Majority Lenders may, by notice to the Borrower: 

  

	 	(i)	cancel the Total Commitments; and 

  

	 	(ii)	declare the Loan, together with accrued interest and all other amounts outstanding under the Finance Documents, to be immediately due and payable. 

 Any such notice will take effect in accordance with its terms. 
  

 20 

	5.3	Voluntary prepayment 

 After the Term-out Date the
Borrower may, by giving not less than 10 Business Days’ prior notice to the Lenders, prepay the Loan in whole or in part (but, if in part, in a minimum amount, and an integral multiple of, £500,000) on any Interest Payment Date.

  

	5.4	Prepayment fees 

 On any prepayment other than
pursuant to clause 5.1, 5.5 or 8.2 of all or any part of the Loan the Borrower shall pay to the Lenders a fee in the manner and in the amount specified in the relevant Fee Letter. 
  

	5.5	Involuntary prepayment and cancellation 

  

	(a)	If the Borrower is, or will be, required to pay to a Lender: 

  

	 	(i)	a Tax Payment; or 

  

	 	(ii)	an Increased Cost, 

 the Borrower may, while the
requirement continues, give notice to that Lender requesting prepayment of the Loan. 
  

	(b)	After notification under paragraph (a) above: 

  

	 	(i)	the Borrower must repay or prepay that Lender’s share of the Loan on the date specified in paragraph (c) below; and 

  

	 	(ii)	the Commitment of that Lender will be immediately cancelled. 

  

	(c)	The date for repayment or prepayment of the Loan will be: 

  

	 	(i)	the next Interest Payment Date; or 

  

	 	(ii)	if earlier, the date specified by the Borrower in its notification. 

  

	5.6	Automatic cancellation 

  

	(a)	The undrawn Commitments will be automatically cancelled at the close of business on the last day of the Availability Period; 

  

	(b)	On the Business Day prior to the first Utilisation Date the Total Commitments shall be automatically reduced to the lower of: 

  

	 	(i)	75 per cent. of the Open Market Value (as determined from the Initial Valuation); and 

  

	 	(ii)	an amount which will ensure that the Projected Interest Cover as at the first Utilisation Date is not less than 130 per cent. assuming the Loan is made in the full amount of
the Request. 

  

	5.7	Miscellaneous provisions 

  

	(a)	Any notice of prepayment and/or cancellation under this Agreement is irrevocable. 

  

 21 

	(b)	All prepayments under this Agreement must be made with accrued interest on the amount prepaid and, if the prepayment is made on a day which is not an Interest Payment Date, the full
amount of the interest that would have been payable on the immediately succeeding Interest Payment Date had no such prepayment occurred. If requested by the Borrower in writing to the Security Agent on or before making such a prepayment pursuant to
Clauses 5.1, 5.5 or 8.2 the Borrower may make such payment into the Operating Account, which shall be without withdrawal save that it shall be released to the Security Agent by way of prepayment on the next following Interest Payment Date. For the
avoidance of doubt, all interest accrued thereon shall be for the Borrower’s account. No premium or penalty is payable in respect of any prepayment or cancellation under this Agreement except for Break Costs and any prepayment fee payable under
this Agreement. 

  

	(c)	No prepayment or cancellation is allowed except in accordance with the express terms of this Agreement. 

  

	(d)	No amount of a Commitment cancelled under this Agreement may subsequently be reinstated. 

  

	(e)	No amount of the Loan prepaid under this Agreement after the Term-out Date may subsequently be re-borrowed. 

  

	5.8	Mitigation 

 If the Borrower is required to make a
payment under clause 5.1 then, without in any way limiting, reducing or otherwise qualifying the Borrower’s obligations: 
  

	(a)	The Security Agent and/or the relevant Lender shall, following consultation with the Borrower and at the cost of the Borrower, endeavour to take such steps as the Security Agent
and/or the relevant Lender considers reasonable and available to any of them (including transfer of their rights and obligations to an Affiliate or other facility office), to mitigate the effects of such circumstances, provided that none of the
Security Agent or the relevant Lender shall be under any obligation to do so if, in the opinion of the Security Agent and/or the relevant Lender (acting reasonably), such steps may have an adverse effect on its or any of the Security Agent’s
and/or the Lenders’ business operations or financial condition; and 

  

	(b)	The Borrower may (for so long as the circumstance giving rise to the payment continues and on 5 days notice) cancel the whole of the undrawn part of the Facility provided that on
the next Interest Payment Date the Senior Liabilities are discharged in full. 

  

	6	INTEREST 

  

	6.1	Calculation of interest 

 The rate of interest on
the Loan is the percentage rate per annum equal to the aggregate of the applicable: 
  

	(a)	Margin; 

  

	(b)	LIBOR; and 

  

	(c)	Mandatory Cost. 

  

 22 

	6.2	Payment of interest 

 Except where it is provided to
the contrary in this Agreement, the Borrower must pay to the Lenders accrued interest on the Loan on each Interest Payment Date. 
  

	6.3	Interest on overdue amounts 

 If the Borrower fails
to pay any amount payable by it under the Finance Documents, it must immediately on demand by the Lenders pay interest on the overdue amount from its due date up to the date of actual payment, both before, on and after judgment at a rate determined
by the Lenders to be two (2%) per cent. per annum. above the rate determined in accordance with Clause 6.1 (Calculation of Interest) with payments being made on each Interest Payment Date. Interest (if unpaid) on overdue amounts will be
compounded with that overdue amount on each Interest Payment Date but will remain immediately due and payable. 
  

	6.4	Notification of rates of interest 

 The Lenders must
promptly notify the Borrower of the determination of a rate of interest under this Agreement. 
  

	6.5	Hedging Arrangements 

 From the implementation of
the Hedging Arrangement pursuant to Clause 4.4(a)(ii)(Term-out option and amortisation) the Borrower must maintain Hedging Arrangements in accordance with this Clause. 
  

	(a)	All Hedging Arrangements must be: 

  

	 	(i)	with the Counterparty or another counterparty acceptable to the Security Agent, acting reasonably; 

  

	 	(ii)	in form and substance satisfactory to the Security Agent, acting reasonably; and 

  

	 	(iii)	charged or assigned by way of security under the Security Agreement. 

  

	(b)	If, at any time, the notional principal amount of the Hedging Arrangements following a prepayment of the Loan exceeds the aggregate amount of the Loans at that time by more than
110%, the Borrower must, at the request of the Security Agent, reduce the notional principal amount of the Hedging Arrangements by an amount and in a manner satisfactory to the Security Agent so that it no longer exceeds 110% of the aggregate amount
of the Loans then outstanding. 

  

	(c)	If, at any time, the Counterparty falls below the short term credit rating of at least A-1 from Standard and Poor’s Rating Services, a division of The McGraw Hill Companies
Inc., at least F-1 from Fitch Ratings Limited and a long term credit rating of at least A1 from Moody’s Investor’s Services Inc., the Borrower will notify the Security Agent and procure that, within 30 days of the ratings downgrade, a
person that does satisfy that rating requirement and is acceptable to be the Security Agent as a new Counterparty. Immediately upon acceptance of the new Counterparty the Borrower shall procure that the Counterparty whose rating was downgraded will
novate each of the Hedging Arrangements to which it is a party to the new Counterparty. 

  

 23 

	(d)	(i)     The parties to each Hedging Arrangement must comply with the terms of that Hedging Arrangement. 

  

	 	(ii)	Neither the Counterparty nor the Borrower may amend or waive the terms of any Hedging Arrangement without the consent of the Security Agent, not to be unreasonably withheld or
delayed. 

  

	(e)	Neither the Counterparty nor the Borrower may terminate or close out any Hedging Arrangement (in whole or in part) except: 

  

	 	(i)	in accordance with paragraph (b) above; 

  

	 	(ii)	if it becomes illegal for that party to continue to comply with its obligations under that Hedging Arrangement; 

  

	 	(iii)	if the Loan and other amounts outstanding under the Finance Documents have been unconditionally and irrevocably paid and discharged in full; 

  

	 	(iv)	in the case of termination or closing out by the Counterparty, if the Security Agent serves notice under Clause 17.15 (Acceleration) or, having served notice under
Clause 17.15 (Acceleration), makes a demand; or 

  

	 	(v)	in the case of termination or closing out by the Borrower, with the consent of the Security Agent, not to be unreasonably withheld or delayed. 

  

	(f)	The Counterparty may only suspend making payments under a Hedging Arrangement if the Borrower is in breach of its payment obligations under that Hedging Arrangement.

  

	(g)	The Counterparty must acknowledge that the rights of the Borrower under the Hedging Arrangements to which it is party have been charged or assigned by way of security under the
Security Agreement. 

  

	7	INTEREST PERIODS 

  

	7.1	Length of Interest Periods 

  

	(a)	Each Loan has successive Interest Periods. 

  

	(b)	Each Interest Period for a Loan will start on its Utilisation Date or on the expiry of its preceding Interest Period and end on the next Interest Payment Date.

  

	7.2	Consolidation 

  

	(a)	Before the Term-out Date all Loans will be consolidated on each Interest Payment Date as one or three monthly by revolving Loans in accordance with the relevant request or Roll-over
Notice under clause 4.2 (Roll-over Notice) and subsequently treated as not more than two Loans. 

  

	(b)	All Loans termed out under clause 4.4 (Term-out option and amortisation) will be consolidated on the Term-out Date and subsequently treated as one Loan. 

  

 24 

	8	MARKET DISRUPTION 

  

	8.1	Failure of a Reference Bank to supply a rate 

 If
LIBOR is to be calculated by reference to the Reference Banks but a Reference Bank does not supply a rate by 12.00 noon on a Rate Fixing Day, the applicable LIBOR will, subject as provided below, be calculated on the basis of the rates of the
remaining Reference Banks. 
  

	8.2	Market disruption 

  

	(a)	In this agreement a market disruption event occurs if LIBOR is to be calculated by reference to the Reference Banks but no, or only one, Reference Bank supplies a rate by
12.00 noon on the Rate Fixing Day. 

  

	(b)	The Security Agent must promptly notify the Borrower and the Lenders of a market disruption event. 

  

	(c)	After notification under paragraph (a) above, the rate of interest on each Lender’s share in the affected Loan for the relevant Interest Period will be the aggregate of
the applicable: 

  

	 	(i)	Margin; 

  

	 	(ii)	rate notified to the Security Agent by that Lender as soon as practicable, and in any event before interest is due to be paid in respect of that Interest Period, to be that which
expresses as a percentage rate per annum the cost to that Lender of funding its share in that Loan from whatever source it may reasonably select; and 

  

	 	(iii)	Mandatory Cost. 

  

	8.3	Alternative basis of interest or funding 

  

	(a)	If a market disruption event occurs and the Security Agent or the Borrower so requires, the Borrower and the Security Agent must enter into negotiations for a period of not more
than 30 days with a view to agreeing an alternative basis for determining the rate of interest and/or funding for the affected Loan and any future Loan. 

  

	(b)	Any alternative basis agreed will be, with the prior consent of all the Lenders, binding on all the Parties. 

  

	9	TAXES 

  

	9.1	Tax gross-up 

  

	(a)	The Borrower must make all payments to be made by it under the Finance Documents without any Tax Deduction, unless a Tax Deduction is required by law. 

  

	(b)	If: 

  

	 	(i)	a Lender is not, or ceases to be, a Qualifying Lender; or 

  

	 	(ii)	the Borrower or a Lender is aware that the Borrower must make a Tax Deduction (or that there is a change in the rate or the basis of a Tax Deduction), 

 it must promptly notify the Borrower or the Lender (as appropriate). 
  

 25 

	(c)	Except as provided below, if a Tax Deduction is required by law to be made by the Borrower or the Security Agent, the amount of the payment due from the Borrower will be increased
to a net amount which (after making the Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required. 

  

	(d)	Except as provided below, the Borrower is not required to make an increased payment under paragraph (c) above for a Tax Deduction in respect of tax imposed by the U.K. to a
Lender that is not, or has ceased to be, a Qualifying Lender in excess of the amount that the Borrower would have had to pay had the Lender been, or not ceased to be, a Qualifying Lender. 

  

	(e)	Paragraph (d) above will not apply if the Lender has ceased to be a Qualifying Lender by reason of any change after the date it became a Lender under this Agreement in (or in
the interpretation, administration, or application of) any law or double taxation agreement or any published practice or concession of any relevant taxing authority. 

  

	(f)	The Borrower is not required to make an increased payment to a Lender under paragraph (c) above for a Tax Deduction in respect of tax imposed by the U.K. if that Lender is a
Treaty Lender and the Borrower is able to demonstrate that the Tax Deduction would not have been required if the Lender had complied with its obligations under paragraph (i) below. 

  

	(g)	If the Borrower is required to make a Tax Deduction, the Borrower must make the minimum Tax Deduction allowed by law and must make any payment required in connection with that Tax
Deduction within the time allowed by law. 

  

	(h)	Within 30 days of making either a Tax Deduction or a payment required in connection with a Tax Deduction, the Borrower must deliver to the Finance Parties evidence satisfactory to
the Finance Parties (acting reasonably) that the Tax Deduction has been made or (as applicable) the appropriate payment has been paid to the relevant taxing authority. 

  

	(i)	A Treaty Lender must co-operate with the Borrower by using its reasonable endeavours to complete any procedural formalities necessary for the Borrower to obtain authorisation to
make that payment without a Tax Deduction. 

  

	(j)	If a Lender is expressed to be a U.K. Non-Bank Lender when it becomes a party to this Agreement as a Lender, it will be deemed to have confirmed its status for the purpose of the
definition of U.K. Non-Bank Lender. A U.K. Non-Bank Lender must promptly notify the Borrower and the Security Agent of any change to its status that may affect any confirmation made by it. 

  

	(k)	The Borrower confirms that it regards payments of interest under the Loan as UK-source interest and intends to deduct UK income tax from payments of interest made under this
Agreement in circumstances where the benefit of the Loan has been assigned to a person who is not within the charge to UK corporation tax in respect of such interest (or not otherwise entitled to receive such interest without deduction of tax by
virtue of section 349(3) or section 349(A) of the Taxes Act 1988). 

  

	9.2	Tax indemnity 

  

	(a)	Except as provided below, the Borrower must indemnify a Finance Party against any loss or liability which that Finance Party (in its absolute discretion) determines will be or has
been suffered (directly or indirectly) by that Finance Party for or on account of Tax in relation to a payment received or receivable (or any payment deemed to be received or receivable) under a Finance Document. 

  

 26 

	(b)	Paragraph (a) above does not apply to any Tax assessed on a Finance Party under the laws of the jurisdiction in which: 

  

	 	(i)	that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party has a Facility Office and is treated as resident for tax
purposes; or 

  

	 	(ii)	that Finance Party’s Facility Office is located in respect of amounts received or receivable in that jurisdiction, 

 if that Tax is imposed on or calculated by reference to the net income received or receivable by that Finance Party. However, any payment deemed to be
received or receivable, including any amount treated as income but not actually received by the Finance Party, such as a Tax Deduction, will not be treated as net income received or receivable for this purpose. 
 A Finance Party making, or intending to make, a claim under paragraph (a) above must promptly notify the Borrower of the event which will give, or
has given, rise to the claim. 
  

	9.3	Tax Credit 

 If the Borrower makes a Tax Payment and
the relevant Finance Party (in its absolute discretion) determines that: 
  

	 	(a)	a Tax Credit is attributable to that Tax Payment; and 

  

	 	(b)	it has used and retained that Tax Credit, 

 the Finance
Party must pay an amount to the Borrower which that Finance Party determines (in its absolute discretion) will leave it (after that payment) in the same after-tax position as it would have been if the Tax Payment had not been required to be made by
the Borrower. 
  

	9.4	Stamp taxes 

 The Borrower must pay and indemnify
each Finance Party against any stamp duty, stamp duty land tax, registration or other similar Tax payable in connection with the entry into, performance or enforcement of any Finance Document, except for any such Tax payable in connection with the
entry into a Transfer Certificate. 
  

	9.5	Value added taxes 

  

	(a)	Any amount (including costs and expenses) payable under a Finance Document by the Borrower is exclusive of any value added tax or any other Tax of a similar nature which might be
chargeable in connection with that amount. If any such Tax is chargeable, the Borrower must pay to the Finance Party (in addition to and at the same time as paying that amount) an amount equal to the amount of that Tax. 

  

	(b)	Where a Finance Document requires any Party to reimburse a Finance Party for any costs or expenses, that Party must also at the same time pay and indemnify the Finance Party against
all value added tax or any other Tax of a similar nature incurred by the Finance Party in respect of those costs or expenses but only to the extent that the Finance Party (acting reasonably) determines that it is not entitled to credit or repayment
from the relevant tax authority in respect of the Tax. 

  

 27 

	9.6	Conduct of business by a Finance Party 

 No term of
this Agreement will: 
  

	 	(a)	interfere with the right of any Finance Party to arrange its affairs (Tax or otherwise) in whatever manner it thinks fit; 

  

	 	(b)	oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it in respect of Tax or the extent, order and manner of any claim; or

  

	 	(c)	oblige any Finance Party to disclose any information relating to its affairs (Tax or otherwise) or any computation in respect of Tax. 

  

	10	INCREASED COSTS 

  

	10.1	Increased Costs 

 Except as provided below in this
Clause, the Borrower must pay to a Finance Party the amount of any Increased Cost incurred by that Finance Party as a result of: 
  

	 	(a)	the introduction of, or any change in, or any change in the interpretation, administration or application of, any law or regulation; or 

  

	 	(b)	compliance with any law or regulation made after the date of this Agreement. 

  

	10.2	Exceptions 

 The Borrower need not make any payment
for an Increased Cost to the extent that the Increased Cost is: 
  

	 	(a)	compensated for by payment of Mandatory Costs; 

  

	 	(b)	compensated for under another Clause or would have been but for an exception to that Clause; 

  

	 	(c)	arises from a tax on the overall net income, profit or gain of the Security Agent or a Lender and/or its Affiliate; 

  

	 	(d)	attributable to a Finance Party wilfully failing to comply with any law or regulation or the terms of any of the Finance Documents; or 

  

	 	(e)	attributable to the implementation or application of or compliance with the “International Convergence of Capital Measurement and Capital Standards, a Revised Framework”
published by the Basel Committee on Banking Supervision in June 2004 in the form existing on the date of this Agreement (“Basel II”) or any other law or regulation which implements Basel II (whether such implementation, application or
compliance is by a government regulator, Finance Party or any of its Affiliates). 

  

 28 

	10.3	Claims 

 A Finance Party intending to make a claim
for an Increased Cost must notify the Borrower promptly of the circumstances giving rise to, and the amount of, the claim and shall provide the Borrower with a certificate confirming the amount of the Increased Costs and showing how such Increased
Cost is calculated. 
  

	11	PAYMENTS 

  

	11.1	Place 

 Unless a Finance Document specifies that
payments under it are to be made in another manner, all payments by a party under the Finance Documents must be made to the Security Agent to its account at such office or bank in London as it may notify to the parties for this purpose by not less
than fifteen (15) Business Days’ prior notice. 
  

	11.2	Funds 

 Payments under the Finance Documents to the
Security Agent must be made for value on the due date at such times and in such funds as is customary at the time for the settlement of transactions in that currency in the place for payment. 
  

	11.3	Distribution 

  

	(a)	Each payment received by the Security Agent under the Finance Documents for another party must, except as provided below, be made available by the Security Agent to that party as
soon as practicable after receipt to its account with such office or bank as it may notify to the Security Agent for this purpose. 

  

	(b)	The Security Agent may apply any amount received by it for the Borrower in or towards payment of any amount due from the Borrower under the Finance Documents.

  

	(c)	Where a sum is paid to the Security Agent under the Finance Documents for another party, the Security Agent is not obliged to pay that sum to that party until it has established
that it has actually received it. However, the Security Agent may assume that it has received the sum and make available to that party a corresponding amount. If it transpires that the sum has not been received by the Security Agent, that party must
immediately on demand by the Security Agent refund any corresponding amount made available to it together with interest on that amount from the date of payment to the date of receipt by the Security Agent at a rate determined by the Security Agent
to reflect its cost of funds. 

  

	11.4	Currency 

  

	(a)	All amounts payable under the Finance Documents are payable in Sterling. 

  

	(b)	If more than one currency or currency unit are at the same time recognised by the Bank of England as the lawful currency of the United Kingdom, then: 

  

	 	(i)	any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, Sterling shall be translated into, or paid in, the currency or currency unit
of the United Kingdom designated by the Lenders; and 

  

	 	(ii)	any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the Bank of England for the conversion of that currency or
currency unit into the other, rounded up or down by the Lenders acting reasonably. 

  

 29 

	11.5	No set-off or counterclaim 

 All payments made by
the Borrower under the Finance Documents must be made without set-off or counterclaim. 
  

	11.6	Business Days 

  

	(a)	If a payment under the Finance Documents is due on a day which is not a Business Day, the due date for that payment will instead be the next Business Day in the same calendar month
(if there is one) or the preceding Business Day (if there is not). 

  

	(b)	During any extension of the due date for payment of any principal under this Agreement interest is payable on that principal at the rate payable on the original due date.

  

	11.7	Partial payments 

  

	(a)	If the Security Agent receives a payment insufficient to discharge all the amounts then due and payable by the Borrower under the Finance Documents, the Security Agent must apply
that payment towards the obligations of the Borrower under the Finance Documents in the following order: 

  

	 	(i)	first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Finance Parties under the Finance Documents; and 

  

	 	(ii)	secondly, in or towards payment pro rata of: 

  

	 	(A)	any periodical payments (not being payments referred to in sub-paragraph (iv) below as a result of termination or closing out) due but unpaid to the Counterparty under the
Hedging Arrangements; and 

  

	 	(B)	any accrued interest or fee due but unpaid under this Agreement; and 

  

	 	(iii)	thirdly, in or towards payment pro rata of: 

  

	 	(A)	any payments (not being payments referred to in sub-paragraph (iv) below as a result of termination or closing out) due but unpaid to the Counterparty under the Hedging
Arrangements; and 

  

	 	(B)	any principal amount due but unpaid under this Agreement; and 

  

	 	(iv)	fourthly, in or towards payment of any payments as a result of the termination or closing out: 

  

	 	(A)	it becoming illegal for a Counterparty to comply with its obligations under the Hedging Arrangements; or 

  

	 	(B)	an event of default relating to a Counterparty, due but unpaid to such Counterparty under the Hedging Arrangement; and 

  

	 	(v)	fifthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents. 

  

 30 

	(b)	Sub-paragraphs (ii)(A), (iii)(A) and (iv) shall only apply to a Counterparty which is Barclays Bank Plc (the Original Lender) or its Affiliate and sub-paragraph (iv) shall
be substituted by “fourthly, in or towards payment pro rata of any payments due but unpaid to any Counterparty under a Hedging Arrangement” in respect of any Counterparty which is not Barclays Bank Plc (the Original Lender) or an
Affiliate. 

  

	(c)	The Security Agent must, if so directed by the Majority Lenders, vary the order set out in sub-paragraphs (a)(ii) to (iv) above. 

  

	(d)	This Subclause will override any appropriation made by the Borrower. 

  

	11.8	Timing of payments 

 If a Finance Document does not
provide for when a particular payment is due, that payment will be due within three Business Days of demand by the relevant Finance Party. 
  

	12	BANK ACCOUNTS 

  

	12.1	Designation of Accounts 

  

	(a)	The Borrower must maintain the following bank accounts in the name of the Borrower with Barclays Bank PLC: 

  

	 	(i)	an interest bearing account designated the Operating Account; 

  

	 	(ii)	a current account designated the General Account; 

  

	(b)	The Borrower must not, without the prior consent of the Lenders, maintain any other bank account. 

  

	12.2	Operating Account 

  

	(a)	The Security Agent has sole signing rights in relation to the Operating Account. 

  

	(b)	The Borrower must ensure that all Net Rental Income payable to the Borrower and any amounts payable to it under a Hedging Arrangement is paid into the Operating Account.

  

	(c)	If any payment of any amount referred to in paragraph (b) above is paid into an Account other than the Operating Account, that payment must be paid immediately into the
Operating Account. 

  

	(d)	If any payment is made in to the Operating Account which should have been paid into another Account, then, unless an Event of Default is outstanding, the Security Agent shall, at
the request of the Borrower and on receipt of evidence satisfactory to the Security Agent that the payment should have been made to that other Account, promptly pay that amount to that other Account. 

  

	(e)	On any day on which an amount is due under the Headlease, the Security Agent may, and is irrevocably authorised by the Borrower to: 

  

	 	(i)	withdraw from the Operating Account an amount necessary to meet that due amount; and 

  

	 	(ii)	apply that amount in payment of that due amount. 

  

 31 

	(f)	Except as provided in paragraph (g) below, on 15 January 2007, 15 April 2007, 15 July 2007 and 15 October 2007 and thereafter on each Interest Payment
Date or (in the case of a payment into the General Account under sub-paragraph (iii) below) on the date the report referred to in Clause 16.2 (Monitoring of Property) is delivered to the Lenders in form and substance satisfactory to them in
respect of the three months ending on the immediately preceding Quarter Date, the Security Agent must, and is irrevocably authorised by the Borrower to, withdraw from, and apply amounts standing to the credit of, the Operating Account, in the
following order: 

  

	 	(i)	first, pro rata of any unpaid costs and expenses of the Security Agent due but unpaid under the Finance Documents; 

  

	 	(ii)	secondly, in or towards payment pro rata of: 

  

	 	(A)	any periodical payments (not being payments as a result of termination or closing out) due but unpaid to the Counterparty under the Hedging Arrangements; and

  

	 	(B)	payment to the Lenders of any accrued interest, fees and other amounts (including Repayment Instalments) due but unpaid under the Finance Documents; and 

  

	 	(iii)	thirdly, (if the Security Agent is satisfied that the conditions in paragraph (h) below are met) payment of any surplus into the General Account.

  

	(g)	Provided that sub-paragraph (f)(ii)(A) shall only apply if the Counterparty is the Original Lender or an Affiliate of the Original Lender. 

  

	(h)	The Security Agent is obliged to make a withdrawal from the Operating Account in accordance with sub-paragraph (f) (iii) above only if: 

  

	 	(i)	no Event of Default is outstanding or would occur on the making of the withdrawal from the Operating Account provided that if a Default (which for the purposes of this Clause shall
mean a default which would with the expiry of the relevant grace period be an Event of Default) is outstanding or would occur on the making of the withdrawal from the Operating Account the amounts withdrawn may not be used for any purpose (including
paying a dividend) and shall only be used in connection with and for the benefit of the Business; 

  

	 	(ii)	the Repeating Representations are correct and will be correct immediately after the withdrawal; 

  

	 	(iii)	in respect of a payment into the General Account under sub-paragraph (f)(iii) above, the Compliance Certificate has been delivered in respect of the three month period ending on the
immediately preceding Quarter Date and a report has been delivered to the Lenders in form and substance satisfactory to them in accordance with Clause 16.2 (Monitoring of Property) in respect of the three month period ending on the immediately
preceding Quarter Date; 

  

	 	(iv)	on the last Quarter Date falling in the period specified in the left-hand column in the table below, the Actual Interest Cover is above the percentage figure specified in the right
hand column in the table: and 

  

 32 

				
	 Period
	  	Actual Interest Cover	 
	 From the date of first Utilisation until 30 September 2007 inclusive
	  	120	%
	 From 30 September 2007 until 30 September 2008 inclusive
	  	130	%
	 From 30 September 2008 until 30 September 2009 inclusive
	  	140	%
	 From 30 September 2009 until 30 September 2013 inclusive
	  	155	%

  

	 	(v)	The Loan to Value is not more than 75%. If the Loan to Value is greater than 75% but less than 80% and on the last Quarter Date falling in the period specified in the left hand
column of the table in (iv) above the Actual Interest Cover is less than the figure specified in the right hand column of the table in (iv) above no withdrawals may be made until the Actual Interest Cover for the period ending on the
following Quarter Dates is satisfied. Notwithstanding the foregoing, if the Borrower prepays part of the Loan by sufficient amount that the relevant Actual Interest Cover for the Relevant Period would have been met withdrawals shall be permitted.

 The Security Agent may authorise withdrawals at any time from the Operating Account to pay any amount due and remaining
unpaid after any grace period under the Finance Documents. 
  

	12.3	General Account 

  

	(a)	Except as provided in paragraph (d) below, the Borrower has signing rights in relation to its General Account. 

  

	(b)	The Borrower must ensure that any amount received by it, other than any amount specifically required under this Agreement to be paid into any other Account, is paid into the General
Account. 

  

	(c)	Subject to paragraph (b) above and to any restriction in the Subordination Agreement and if no Event of Default is outstanding or would occur on the making of the withdrawal,
the Borrower may withdraw any amount from its General Account for any purpose (including making dividends in accordance with clause 15.13 of this agreement). 

  

	(d)	At any time when an Event of Default is outstanding, the Security Agent may, and is irrevocably authorised by the Borrower to: 

  

	 	(i)	operate the General Account; and 

  

	 	(ii)	withdraw from, and apply amounts standing to the credit of, the General Account in or towards any purpose for which moneys in any Account may be applied. 

 

	12.4	Designation of Guarantor Accounts 

  

	(a)	The Guarantor must maintain the following bank accounts in the name of the Guarantor with Barclays Bank PLC: 

  

	 	(i)	interest bearing account designated the Guarantor Operating Account; 

  

 33 

	 	(ii)	a current account designated the Guarantor General Account; and 

  

	(b)	The Guarantor must not, without the prior consent of the Lenders, maintain any other bank account. 

  

	12.5	Guarantor Operating Account 

  

	(a)	The Security Agent has sole signing rights in relation to the Guarantor Operating Account. 

  

	(b)	The Guarantor must ensure that all Net Rental Income payable to the Guarantor is paid into the Guarantor Operating Account. 

  

	(c)	If any payment of any amount referred to in paragraph (b) above is paid into an Account other than the Guarantor Operating Account, that payment must be paid immediately into
the Guarantor Operating Account. 

  

	(d)	The Guarantor may satisfy its obligations under paragraph (b) above by procuring that: 

  

	 	(i)	the Manager promptly collects all Rental Income and promptly pays all Net Rental Income received by it into the Guarantor Operating Account; and 

  

	 	(ii)	the Manager immediately pays all amounts, payable to the Guarantor under the Management Agreement, into the Guarantor Operating Account. 

  

	(e)	If any payment is made in to the Guarantor Operating Account which should have been paid into another Account, then, unless an Event of Default is outstanding, the Security Agent
shall, at the request of the Guarantor and on receipt of evidence satisfactory to the Security Agent that the payment should have been made to that other Account, pay that amount to that other Account. 

  

	(f)	On any day on which an amount is due under the Operating Lease, the Security Agent will, and is irrevocably authorised by the Guarantor to: 

  

	 	(i)	withdraw from the Guarantor Operating Account an amount necessary to meet that due amount; and 

  

	 	(ii)	apply that amount in payment of that due amount. 

  

	(g)	If any tenant of the Property sends or makes one payment (whether by cheque or otherwise) in respect of Rental Income and other amounts: 

  

	 	(i)	that payment must be paid into the Guarantor Operating Account; and 

  

	 	(ii)	unless an Event of Default is outstanding, the Security Agent shall, at the request of the Guarantor and on receipt of evidence satisfactory to the Security Agent that the payment
includes an amount which is not Net Rental Income pay that amount into the Guarantor General Account into other Operating Account or apply it others pursuant to clause 12.2 (h) above. 

  

	(h)	Except as provided in paragraph (g) below, on 15 January 2007, 15 April 2007, 15 July 2007 and 15 October 2007 and thereafter on each Interest Payment
Date or (in the case of a payment into the Guarantor General Account under sub-paragraph (iv) below) on the date the report referred to in Clause 16.2 (Monitoring of Property) is delivered to the Lenders in form and substance satisfactory to
them and in respect of the three months ending on the 

  

 34 

 immediately preceding Quarter Date, the Security Agent must, and is irrevocably authorised by the
Guarantor to, withdraw from, and apply amounts standing to the credit of, the Guarantor Operating Account, in the following order: 
  

	 	(i)	first, payment in the Operating Account of all Net Rental Income payable under the Operating Lease to the Borrower; 

  

	 	(ii)	secondly, to the extent not paid by the Borrower in or towards payment pro rata of: 

  

	 	(A)	any periodical payments (not being payments as a result of termination or closing out) due but unpaid to the Counterparty under the Hedging Arrangement; 

  

	 	(B)	payment pro rata of any unpaid costs and expenses of the Security Agent due but unpaid under the Finance Documents; 

  

	 	(iii)	thirdly, to the extent not paid by the Borrower payment to the Lenders of any accrued interest, fees and other amounts (including Repayment Instalments) due but unpaid under
the Finance Documents; and 

  

	 	(iv)	fourthly, (if the Security Agent is satisfied that the conditions in paragraph (j) below are met) payment of any surplus into the Guarantor General Account.

  

	(i)	Provided that sub-paragraph (h)(ii)(A) shall only apply if the Counterparty is the Original Lender or an Affiliate of the Original Lender. 

  

	(j)	The Security Agent is obliged to make a withdrawal from the Guarantor Operating Account in accordance with sub-paragraph (h) (iv) above only if: 

 

	 	(i)	no Event of Default is outstanding or would occur on the making of the withdrawal from the Guarantor Operating Account provided that if a Default (which for the purposes of this
Clause shall mean a default which would with the expiry of the relevant grace period be an Event of Default) is outstanding or would occur on the making of the withdrawal from the Guarantor Operating Account the amounts withdrawn may not be used for
any purpose (including paying a dividend) and shall only be used in connection with and for the benefit of the Business; and 

  

	 	(ii)	the conditions listed in clause 12.2(h) (ii), (iv) and (v) above are satisfied. 

  

	(k)	The Security Agent may authorise withdrawals at any time from the Guarantor Operating Account to pay any amount due and remaining unpaid after any grace period under the Finance
Documents. 

  

	12.6	Guarantor General Account 

  

	(a)	Except as provided in paragraph (d) below, the Guarantor has signing rights in relation to its Guarantor General Account. 

  

	(b)	The Guarantor must ensure that any amount received by it, other than any amount specifically required under this Agreement to be paid into any other Account, is paid into the
Guarantor General Account. 

  

 35 

	(c)	Subject to compliance with the proviso to paragraph 12.2(j)(ii) above and to any restriction in the Subordination Agreement and if no Event of Default is outstanding or would occur
on the making of the withdrawal, the Guarantor may withdraw any amount from its Guarantor General Account for any purpose (including making dividends in accordance with Clause 15.13 of this agreement). 

  

	(d)	At any time when an Event Default is outstanding, the Security Agent may, and is irrevocably authorised by the Guarantor to: 

  

	 	(i)	operate the Guarantor General Account; and 

  

	 	(ii)	withdraw from, and apply amounts standing to the credit of, the Guarantor General Account in or towards any purpose for which moneys in any Account may be applied.

  

	12.7	Miscellaneous Accounts provisions 

  

	(a)	The Obligors must ensure that no Account goes in to overdraft. 

  

	(b)	Any amount received or recovered by the Obligors otherwise than by credit to an Account must be held subject to the security created by the Finance Documents and immediately be paid
to the relevant Account or to the Security Agent in the same funds as received or recovered. 

  

	(c)	The monies standing to the credit of each Account may be applied by the Security Agent on the date any repayment of the Loan is due to be made, and is unpaid, in or towards
repayment of the Loan and all other amounts due to a Finance Party under the Finance Documents. 

  

	(d)	No Finance Party is responsible or liable to the Obligors (other than in respect of gross negligence or wilful default) for: 

  

	 	(i)	any non-payment of any liability of the Obligors which could be paid out of moneys standing to the credit of an Account; or 

  

	 	(ii)	any withdrawal wrongly made, if made in good faith. 

  

	(e)	The Obligors must, within five Business Days of any reasonable request by the Security Agent, supply the Security Agent with the following information in relation to any payment
received in an Account: 

  

	 	(i)	the date of payment or receipt; 

  

	 	(ii)	the payer; and 

  

	 	(iii)	the purpose of the payment or receipt. 

  

	(f)	Any amounts withdrawn from the Guarantor Operating Account or the Guarantor General Account and applied in or towards satisfaction of any amounts owed by the Borrower to the Finance
Parties shall pro tanto satisfy the Borrowers obligation to pay such amounts. Any such amounts shall constitute a loan made by the Guarantor to the Borrower that is fully subordinated to the rights of the Finance Parties. 

 

 36 

	12.8	Change of Bank Accounts 

 An Account must at any
time be moved to another bank approved by the Security Agent if the Security Agent or the Lenders so requests by giving twenty (20) Business Days notice to the relevant Obligor. 
  

	(a)	A change of Account only becomes effective when the proposed new bank agrees with the Security Agent and the relevant Obligor, in a manner satisfactory to the Security Agent, to
fulfil the role of the bank holding that Account. 

  

	13	REPRESENTATIONS 

  

	13.1	Representations 

 The representations set out in
this Clause are made by the Borrower and the Guarantor in respect of itself and the other to each Finance Party. 
  

	13.2	Status 

 The Borrower is a Societe a Responsabilite
Limitée establishment in Luxembourg and validly existing under the laws of Luxembourg and the Guarantor is a limited liability company, duly incorporated and validly existing under the laws of its jurisdiction of original incorporation.

  

	(a)	It has the power to own its assets and carry on its business as it is being conducted. 

  

	(b)	Neither the Obligors nor any partner member or shareholder of the Obligors is an officer or director of a Lender or is a son, daughter, mother, father or spouse of an officer or
director of a Lender and each of the Obligors agree to furnish to the Lenders on request (after the Utilisation Date) evidence confirming the representation and warranty in this subclause. 

 (c) 
  

	 	(i)	The Obligors are acting on their own behalf and are not an employee benefit plan as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(ERISA), which is subject to Title 1 of ERISA, nor a plan as defined in Section 4975(e) (1) of the Internal Revenue Code of 1986 as amended (each of the foregoing hereinafter referred to collectively as a Plan); 

 

	 	(ii)	none of the assets of the Obligors constitute “plan assets” of one or more such Plans within the meaning of ERISA (including Department of Labor Regulation
Section 2510.3-101); and 

  

	 	(iii)	the Obligors will not be reconstituted as a Plan or as an entity whose assets constitute “plan assets”. 

  

	13.3	Powers and authority 

 It has the power to enter
into and perform, and has taken all necessary action to authorise the entry into and performance of, the Transaction Documents to which it is or will be a party and the transactions contemplated by those Transaction Documents. 
  

 37 

	13.4	Legal validity 

 Subject to any general principles
of law limiting its obligations and referred to in any legal opinion required under this Agreement, each Transaction Document to which it is a party is its legally binding, valid and (subject to the Reservations) enforceable obligation. 

 

	13.5	Non-conflict 

 The entry into and performance by it
of, and the transactions contemplated by, the Transaction Documents do not conflict with: 
  

	 	(a)	any law or regulation applicable to it; 

  

	 	(b)	its constitutional documents; or 

  

	 	(c)	any document which is binding upon it or any of its assets. 

  

	13.6	No default 

  

	(a)	No Event of Default is outstanding or will result from the execution of, or the performance of any transaction contemplated by, any Transaction Document; and

  

	(b)	no other event is outstanding which constitutes a default under any document which is binding on it or any of its assets to an extent or in a manner which has or is reasonably
likely to have a Material Adverse Effect. 

  

	13.7	Authorisations 

 Except for registration of the
Security Documents, all authorisations required by it in connection with the entry into, performance, validity and enforceability of, and the transactions contemplated by, the Transaction Documents have been obtained or effected (as appropriate) and
are in full force and effect. 
  

	13.8	Financial statements 

 Its financial statements most
recently delivered to the Lenders and the Security Agent: 
  

	 	(a)	have been prepared in accordance with accounting principles and practices generally accepted in its jurisdiction of incorporation, consistently applied; and

  

	 	(b)	fairly represent its financial condition as at the date to which they were drawn up, 

 except, in each case, as disclosed to the contrary in those financial statements. 
  

	13.9	Litigation 

 No litigation, arbitration or
administrative proceedings are current or, to its knowledge, pending or threatened, which (if adversely determined) have or are reasonably likely to have a Material Adverse Effect. 
  

 38 

	13.10	Information 

  

	(a)	All information supplied by it or on its behalf to any Finance Party in connection with the Transaction Documents was true and accurate as at its date or (if appropriate) as at the
date (if any) at which it is stated to be given; 

  

	(b)	any financial projections contained in the information referred to in paragraph (a) above have been prepared as at their date, on the basis of recent historical information
and assumptions believed by it to be fair and reasonable; 

  

	(c)	as at the date the information referred to in paragraph (a) above was stated to be given it had not omitted to supply any information which, if disclosed, would make any
other information referred to in paragraph (a) above untrue or misleading in any material respect; and 

  

	(d)	as at the date of this Agreement and the Utilisation Date, nothing has occurred since the date information referred to in paragraph (a) above was supplied which, if
disclosed, would make that information untrue or misleading in any material respect. 

  

	13.11	Valuation/Report on Title 

  

	(a)	All information supplied by it or on its behalf to the Valuer for the purposes of each Valuation and to the relevant solicitors for the purposes of any Report on Title was true and
accurate as at its date or (if appropriate) as at the date (if any) at which it is stated to be given; and 

  

	(b)	as at the date the information referred to in paragraph (a) above was stated to be given it had not omitted to supply any information which, if disclosed, would adversely affect the
Valuation or Report on Title (as the case may be). 

  

	13.12	Title to Property 

  

	(a)	It will from the Utilisation Date: 

  

	 	(i)	be the legal and beneficial owner in the case of the Borrower of the Head Lease and in the case of the Guarantor of the Operating Lease; and 

  

	 	(ii)	have good and marketable title to its respective interest in the Property, 

 in each case free from Security Interests (other than those set out in the Security Agreement) and restrictions and onerous covenants (other than those set out in the Report on Title in relation to the Headlease).

  

	(b)	From the Utilisation Date except as disclosed in any Report on Title: 

  

	 	(i)	all consents, licences and authorisations required by it in connection with its ownership of the Property have been obtained or effected (as appropriate) and are in full force and
effect; 

  

	 	(ii)	no breach of any law or regulation (including in respect of any Tax) is outstanding which adversely affects or might adversely affect the value of the Property or the Net Rental
Income; 

  

 39 

	 	(iii)	there is no covenant, agreement, stipulation, reservation, condition, interest, right or other matter adversely affecting the Property; 

  

	 	(iv)	nothing has arisen or has been created or is outstanding which would be an overriding interest, or an unregistered interest which overrides first registration or registered
dispositions, over the Property; 

  

	 	(v)	no facility necessary for the enjoyment and use of the Property is enjoyed by the Property on terms entitling any person to terminate or curtail its use; 

 

	 	(vi)	it has not received any notice of any adverse claim by any person in respect of the ownership of the Property or any interest in it, nor has any acknowledgement been given to any
person in respect of the Property; and 

  

	 	(vii)	the Property is held by it free from any tenancy or licence (other than those entered into in accordance with this Agreement); 

 references in this paragraph (b) to the “Property” are the respective leasehold interests of the Borrower and the Guarantors. 

 

	(c)	All deeds and documents necessary to show good and marketable title to the Borrowers’ and the Guarantors’ respective interests in the Property will, subsequent to
completion of registration at the Land Registry, from the Utilisation Date be: 

  

	 	(i)	in possession of the Security Agent; or 

  

	 	(ii)	held to the order of the Security Agent. 

  

	13.13	No other business 

  

	(a)	Save for the Business it has not traded or carried on any business since the date of its incorporation except for the ownership, management, letting and development of its interests
in the Property. 

  

	(b)	Save for the Management Agreement, the IHLC Agreements and the Share Purchase Agreement and all documents contemplated by, or supplemental to such agreements it is not party to any
material agreement other than the Transaction Documents and documents contemplated in the Transaction Documents, agreements entered into the ordinary course of business at arm’s length or normal commercial terms and/or agreements with members
of the group of companies to which the Obligors, BRE/ Grosvenor and Pingleton belong or the group of companies to which the Parent belongs. 

  

	(c)	The Borrower does not have (nor has it had) any Subsidiaries or employees. 

  

	(d)	It has not incurred any liabilities or undertaken any obligations other than those arising from the activities referred to in paragraphs (a) and (b) above or under the
Transaction Documents. 

  

	13.14	Ownership 

 As at the date of this Agreement, the
entire issued share capital of the Borrower is or will following completion of the Permitted Reorganisation be legally and beneficially directly or indirectly wholly owned and controlled by Pingleton and the entire issued share capital of the
Guarantor is or will following completion of the Permitted Reorganisation be legally and beneficially directly or indirectly wholly owned and controlled by Lomar Holdco. 
  

 40 

	13.15	Ranking of Security 

 Subject to the Reservations
the security conferred by each Security Document constitutes a security interest of the type intended and described in that Security Document and those assets are not subject to any prior or pari passu Security Interest save for any Permitted
Security. 
  

	13.16	Taxes on payments 

  

	(a)	All amounts payable by the Obligors under the Finance Documents may be made without any Tax Deduction. 

  

	(b)	No Rental Income payable to the Obligors is subject to a requirement to make a Tax Deduction. 

  

	13.17	Stamp duties 

 Except for registration fees payable
at the Companies Registry and, where appropriate the Land Registry (in each case in respect of the Security Documents) and any nominal registration duty or ad valorem duty payable in connection with the registration of any of the Finance Documents
with the Administration d l’Enregistrement et des Dorraines in Luxembourg required in the case of legal proceedings before the Luxembourg courts or if any of the Finance Documents are to be produced before a Luxembourg authority no stamp or
registration duty or similar Tax or charge is payable in its jurisdiction of incorporation in respect of any Finance Document. 
  

	13.18	Immunity 

  

	(a)	The entry into by the Obligors of each Finance Document constitutes, and the exercise by it of its rights and performance of its obligations under each Finance Document will
constitute, private and commercial acts performed for private and commercial purposes; and 

  

	(b)	The Obligors will not be entitled to claim immunity from suit, execution, attachment or other legal process in any proceedings taken in its jurisdiction of incorporation in relation
to any Finance Document. 

  

	13.19	Jurisdiction/governing law 

  

	(a)	The: 

  

	 	(i)	irrevocable submission under this Agreement to the jurisdiction of the courts of England; 

  

	 	(ii)	agreement that this Agreement is governed by English law; and 

  

	 	(iii)	agreement not to claim any immunity to which it or its assets may be entitled, 

 are legal, valid and binding under the laws of the jurisdiction of incorporation of the Obligors; and 
  

 41 

 Subject to the Reservations and compliance with relevant enforcement procedures any judgment obtained in England will be
recognised and be enforceable by the courts of the jurisdiction of incorporation of the Obligors. 
  

	13.20	Times for making representations 

  

	(a)	The representations set out in this Clause are made by the Obligors on the date of this Agreement. 

  

	(b)	Unless a representation is expressed to be given at a specific date, each representation is deemed to be repeated by the Obligors on the date of the Request, on the Utilisation
Date, on 15 January 2007, 15 April 2007, 15 July 2007 and 15 October 2007 and thereafter on each Interest Payment Date (to the extent not disclosed in the Compliance Certificate provided in respect of the last Quarter Date).

  

	(c)	When a representation is repeated, it is applied to the circumstances existing at the time of repetition. 

  

	14	INFORMATION COVENANTS 

  

	14.1	Financial statements 

  

	(a)	Each Obligor confirms that the date of its financial year end is 31 December. Each Obligor must supply to the Finance Parties: 

  

	 	(i)	its audited financial statements for each of its financial years; and 

  

	 	(ii)	its unaudited financial statements for each of its financial half-years (but only if prepared). 

  

	(b)	All financial statements must be supplied as soon as they are available and: 

  

	 	(i)	in the case of the Obligors’ audited financial statements, within 180 days; and 

  

	 	(ii)	(if applicable) in the case of the Obligors’ unaudited financial statements, within 90 days, 

 of the end of the relevant financial period. 
  

	(c)	Within twenty (20) days of 15 January 2007, 15 April 2007, 15 July 2007 and 15 October 2007 and thereafter each Interest Payment Date, the Obligors shall,
in conjunction with the Manager, prepare and submit to the Security Agent, a quarterly performance report on the Business setting out the income and other cash generated by the Business together with all liabilities incurred by the Business in the
three month period to the immediately preceding Quarter Date including (a) a calculation of the relevant profit or loss of the Business (b) the amounts due to the Manager under the Management Agreement (c) the revenue per available
room (RevPar) and (d) the occupancy rate. 

  

	14.2	Valuations 

  

	(a)	The Lenders may request a Valuation at any time on reasonable notice so as not to disturb the Business. 

  

 42 

	(b)	The Obligors must on demand by the Lenders pay the costs of the Initial Valuation and any Valuation requested by the Lenders at any time when a Default is outstanding whether or not
subsequently cured or waived. 

  

	(c)	The Obligors must supply to the Finance Parties a copy of any valuation of the Headlease, Operating Lease and/or the Business it obtains, promptly upon obtaining it.

  

	(d)	Any Valuation not referred to in paragraph (b) above will be at the cost of the Lenders. 

  

	14.3	Compliance certificate 

 The Borrower must supply to
the Finance Parties within twenty (20) days of 15 January 2007, 15 April 2007, 15 July 2007 and 15 October 2007 and thereafter each Interest Payment Date a Compliance Certificate. Each Compliance Certificate must be signed
by one authorised signatory of the Borrower. 
  

	14.4	Information - miscellaneous 

 The Obligors must
supply to the Finance Parties: 
  

	 	(a)	promptly upon becoming aware of them, details of any litigation, arbitration or administrative proceedings which are current, threatened or pending and which have or which might
reasonably be expected, if adversely determined, have a Material Adverse Effect; 

  

	 	(b)	promptly on request, such further information as the Lenders may reasonably request in an Obligor’s possession or control regarding: 

  

	 	(i)	such Obligor’s financial condition and operations; or 

  

	 	(ii)	the Property. 

  

	14.5	Notification of Default 

 The Obligors must notify
the Finance Parties of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence. 
  

	14.6	Know your customer requirements 

 The Obligors must
promptly on the request of any Finance Party supply to that Finance Party any documentation or other evidence which is reasonably requested by that Finance Party (whether for itself, on behalf of any Finance Party or any prospective new Lender) to
enable a Finance Party or prospective new Lender to carry out and be satisfied with the results of all applicable know your customer requirements. 
  

	15	GENERAL COVENANTS 

  

	15.1	General 

 The Obligors agrees to be bound by the
covenants set out in this Clause relating to each of them. 
  

 43 

	15.2	Authorisations 

 The Obligors must promptly obtain,
maintain and comply with the terms of any authorisation required under any law or regulation to enable it to perform its obligations under, or for the validity or enforceability of, any Transaction Document to which it is a party. 
  

	15.3	Compliance with laws 

 The Obligors must comply in
all respects with all laws to which it is subject where failure to do so has or is reasonably likely to have a Material Adverse Effect. 
  

	15.4	Pari passu ranking 

 The Obligors must ensure that
its payment obligations under the Finance Documents rank at least pari passu with all its other present and future unsecured payment obligations, except for obligations mandatorily preferred by law applying to companies generally. 
  

	15.5	Negative pledge 

  

	(a)	Except as provided below, the Obligors must not create or allow to exist any Security Interest on any of its assets. 

  

	(b)	Paragraph (a) above does not apply to: 

  

	 	(i)	any Security Interest constituted by the Security Documents; or 

  

	 	(ii)	any lien arising by operation of law and in the ordinary course of trading. 

  

	(c)	The Obligors must not, without the Security Agent’s prior written consent: 

  

	(d)	sell, transfer or otherwise dispose of any of its assets on terms where it is or may be leased to or re-acquired or acquired by any of its related entities;

  

	(e)	sell, transfer or otherwise dispose of any of its receivables on recourse terms; 

  

	(f)	enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or

  

	(g)	enter into any preferential arrangements having a similar effect, in circumstances where the transaction is entered into primarily as a method of raising indebtedness or of
financing the acquisition of an asset. 

  

	15.6	Disposals 

  

	(a)	Except as provided in this Agreement, the Obligors must not, either in a single transaction or in a series of transactions and whether related or not, dispose of their respective
leasehold interests in the Property the Business or all or any part of its assets. 

  

	(b)	Paragraph (a) above does not apply to any disposal: 

  

	 	(i)	made with the consent of the Lenders; 

  

 44 

	 	(ii)	made by way of the grant, renewal or extension of an Occupational Lease made in accordance with Clause 16.1 (Occupational Leases); 

  

	 	(iii)	of cash by way of a payment out of an Account in accordance with this Agreement; 

  

	 	(iv)	made in the ordinary course of trading of any asset that is subject to a floating charge and is not expressed to be subject to a fixed charge under the Security Agreement; or

  

	 	(v)	comprising part of the Permitted Reorganisation. 

  

	15.7	Financial indebtedness 

  

	(a)	Except as provided below, the Obligors must not incur any indebtedness. 

  

	(b)	Paragraph (a) above does not apply to: 

  

	 	(i)	any indebtedness incurred under the Finance Documents; or 

  

	 	(ii)	any Permitted Indebtedness. 

  

	15.8	Lending and guarantees 

  

	(a)	The Obligors must not make any loan or provide any form of credit to any person. 

  

	(b)	The Obligors must not give any guarantee or indemnity to or for the benefit of any person in respect of any obligation of any other person or enter into any document under which the
Obligors assumes any liability of any other person. 

  

	(c)	This clause does not apply to Permitted Indebtedness. 

  

	15.9	Change of business 

  

	(a)	The Obligors must not carry on any business other than the ownership, management, letting and development of their respective leasehold interests in the Building and the Business.

  

	(b)	The Obligors must not have any Subsidiary. 

  

	(c)	The Obligors must not be a member of any value added tax group. 

  

	15.10	Mergers 

 The Obligors must not enter into any
amalgamation, demerger, merger or reconstruction other than as part of the Permitted Reorganisation. 
  

	15.11	Acquisitions 

 The Obligors must not make any
acquisition or investment other than as part of the Permitted Reorganisation or in the case of the Guarantor property and assets acquired for use in the Business in the ordinary course of business. 
  

 45 

	15.12	Other Contracts 

  

	(a)	The Obligors must not enter into any contract other than: 

  

	 	(i)	the Transaction Documents; 

  

	 	(ii)	a contract entered into by the Obligors in connection with the day to day management, operation, letting and/or development of the Building and/or the Business; and

  

	 	(iii)	any other contract expressly allowed under any other term of this Agreement. 

  

	(b)	The Obligors must not amend or terminate any Transaction Document except as expressly permitted under this Agreement. 

  

	15.13	Shares and dividends 

 The Obligors must not (save
for a Permitted Payment or as part of the Permitted Reorganisation) and provided that at the time of making such a Permitted Payment or the Permitted Reorganisation no Event of Default is outstanding or would occur and no Default (which for the
purposes of this Clause shall mean a default which would with the expiry of the relevant grace period be an Event of Default) is outstanding or would occur): 
  

	(a)	declare or pay any dividend or make any other distribution in respect of any of its shares; 

  

	(b)	issue any further shares or alter any rights attaching to its issued shares as at the date of this Agreement; or 

  

	(c)	repay or redeem any of its share capital. 

  

	15.14	Securitisation and Syndication 

 The Obligors agree
to co-operate with the Lenders and to provide such information and execute such documents as Lender may reasonably request in connection with any sale or transfer of the Lender’s interest in the Loan and/or any of the Finance Documents in
connection with any securitisation of the Loan whether alone or in conjunction with any other loan. Any such sale, transfer or securitisation will be made without additional cost being incurred by the Obligors at the time of the sale, transfer or
securitisation and thereafter. 
  

	15.15	Centre of Main Interests 

 The Obligors will not
cause or allow its registered office or Centre of Main Interests to be in or maintain an Establishment in any jurisdiction other than its jurisdiction of incorporation. 
  

	15.16	Steps Plan 

 The Obligors will comply in all
respects with the Steps Plan. 
  

 46 

	16	PROPERTY COVENANTS 

  

	16.1	Occupational Leases 

 The Borrower must not, without
the prior consent of the Lenders (such consent not to be unreasonably withheld or delayed): 
  

	(a)	enter into any Agreement for Lease or grant or agree to grant any new Occupational Lease unless the same relates to a part of the Property which is a Permitted Letting:

  

	(b)	agree to any amendment, waiver or surrender in respect of any Lease Document or exercise any break option under an Occupational Lease; 

  

	(c)	consent to any sub-lease or assignment of any tenant’s interest under any Lease Document unless the assignor remains bound by the terms of the Occupational Lease for the
remainder of the term of that Occupational Lease; or 

  

	(d)	agree to any downward rent review in respect of any Lease Document. 

  

	16.2	Monitoring of Property 

 The Obligors shall provide
to the Finance Parties within twenty (20) days of 15 January 2007, 15 April 2007, 15 July 2007 and 15 October 2007 and thereafter of each Interest Payment Date, a report containing the information (in form and substance
agreed between the Borrower and Security Agent) in relation to the Property and in respect of the period of three months ending on the immediately preceding Quarter Date. 
  

	16.3	Refurbishment Agreement 

 The Borrower shall procure
that the capital investment and refurbishment expenditure incurred in relation to the Buildings shall not be less than £4,000,000 in aggregate by the third anniversary of this agreement. 
  

	16.4	Manager 

  

	(a)	The Guarantor must not appoint any new Manager of the Business without the prior consent of, and on terms approved by, the Security Agent. 

  

	(b)	Without limiting paragraph (a) above, the Guarantor must ensure that: 

  

	 	(i)	each Manager manages the Business to a standard consistent with that of a prudent hotelier; and 

  

	 	(ii)	the terms of any management agreement are not amended without the consent of the Security Agent. 

  

	(c)	The Obligors must ensure that each Manager of the Business enters into a Non-Disturbance Agreement. 

  

	(d)	If the Manager is in default of its obligations under the management agreement and, as a result, the Guarantor is entitled to terminate the Management Agreement, then, if the
Security Agent so requires (acting on the instructions of the Lenders), the Guarantor must promptly use all reasonable endeavours to: 

  

	 	(i)	terminate the Management Agreement in accordance with its terms; and 

  

 47 

	 	(ii)	appoint a new Manager whose identity and terms of appointment are acceptable to the Security Agent (acting on the instructions of the Lenders). 

  

	16.5	Insurances 

  

	(a)	In this Clause, insurance policy means an insurance policy or contract required under this Subclause. 

  

	(b)	The Borrower must ensure that at all times from the Utilisation Date: 

  

	 	(i)	the Building and the Business and the plant and machinery on the Building (including fixtures and improvements) are insured on a full reinstatement basis, such insurance to include:

  

	 	(A)	cover against all normally insurable risks of loss or damage; 

  

	 	(B)	cover for site clearance, professional fees and value added tax together with adequate allowance for inflation; 

  

	 	(C)	loss of rent insurance (in respect of a period of not less than three years or, if longer, the minimum period required under the Lease Documents) including provision for increases
in rent during the period of insurance; and 

  

	 	(D)	cover against acts of sabotage and terrorism, including any third party liability arising from any such acts; 

  

	 	(ii)	property owners insurance including public liability and products liability insurance is in force; and 

  

	 	(iii)	such other insurances as a prudent company in the same business as the Borrower would effect in respect of the Building and/or the Business are in force. 

 

	(c)	(i)     All insurances required under this Subclause must be: 

  

	 	(E)	in an amount and form acceptable to the Security Agent (acting on the instructions of the Lenders); 

  

	 	(F)	with an insurance company or underwriter that is acceptable to the Lenders; and 

  

	 	(G)	in compliance with the obligations contained in the Headlease and the Operating Lease. 

  

	 	(ii)	insurance company or underwriter ceases to be acceptable to the Lenders, the Lenders shall notify the Borrower and the Borrower shall put in place replacement insurances in
accordance with this Clause with an insurance company or underwriter which is acceptable to the Security Agent (acting on the instructions of the Lenders) by the date which is the earlier of the date of the expiry date of the relevant policy and the
date falling 90 days after the notice to the Borrower from the Lenders. 

  

 48 

	(d)	The Borrower must procure that the Security Agent (as agent and trustee for the Finance Parties) is named as co-insured on each insurance policy and is named as first loss payee.

  

	(e)	The Borrower must procure that each insurance policy contains: 

  

	 	(i)	a standard mortgagee clause under which the insurance will not be vitiated or avoided as against the Security Agent as a result of any misrepresentation, act or neglect or failure
to disclose, or breach of any policy term or condition, on the part of any insured party or any circumstances beyond the control of an insured party; 

  

	 	(ii)	terms providing that it will not, so far as any Finance Party is concerned, be invalidated for failure to pay any premium due without the insurer first giving to the Security Agent
not less than 14 days’ notice in writing and an opportunity to rectify the non-payment within the notice period; and 

  

	(f)	The Borrower must use all reasonable endeavours to ensure that the Security Agent receives copies of the insurance policies and any information in connection with the insurances and
claims under them which the Security Agent may reasonably require. 

  

	(g)	The Borrower must promptly notify the Security Agent of: 

  

	 	(i)	the proposed terms of any future renewal of any insurance policy; 

  

	 	(ii)	any material variation or termination, avoidance or cancellation of any insurance policy made or, to its knowledge, threatened or pending; 

  

	 	(iii)	any claim in excess of £250,000 of which the Borrower is aware, and any actual or threatened refusal of any claim in excess of £250,000 of which the Borrower is aware,
under any insurance policy; and 

  

	 	(iv)	any event or circumstance which has led or may lead to a breach by the Borrower of any term of this Subclause. 

  

	(h)	The Borrower must: 

  

	 	(i)	comply with the terms of all insurance policies; 

  

	 	(ii)	not do or permit anything to be done which may make void or voidable any insurance policy; and 

  

	 	(iii)	comply with all reasonable risk improvement requirements of its insurers. 

  

	(i)	If the Borrower fails to comply with any term of this Subclause, the Security Agent may, at the expense of the Borrower, effect any insurance and generally do such things and take
such other action as the Security Agent may reasonably consider necessary to prevent or remedy any breach of this Subclause and shall notify the Borrower of such action. 

  

	(j)	

  

	 	(i)	To the extent required by the basis of settlement under any insurance policy or Lease Document, the Borrower must apply moneys received under any insurance policy in respect of the
Building towards replacing, restoring or reinstating the Building. 

  

 49 

	 	(ii)	The proceeds of any loss of rent insurance will be treated as Rental Income and applied in such manner as the Security Agent (acting on the reasonable instructions of the Lenders)
requires to have effect as if it were Rental Income received over the period of the loss of rent. 

  

	 	(iii)	Moneys received under liability policies which are required by the Borrower to satisfy established liabilities of the Borrower to third parties must be used to satisfy these
liabilities. 

  

	 	(iv)	Save as set out above, the proceeds of any insurance policy must, if the Security Agent so requires (acting on the instructions of the Lenders), be used to prepay the Loan.

  

	(k)	Notwithstanding the terms of this clause 16.5 (Insurances), the Borrower shall not be obliged to comply with any provision set out in clause 16.5 (Insurances) if, in doing so, the
Borrower would breach the terms of the Headlease. 

  

	16.6	Environmental matters 

  

	(a)	In this Subclause: 

 Environmental Approval means
any authorisation required by an Environmental Law. 
 Environmental Claim means any claim against an Obligor by any person in
connection with: 
  

	 	(i)	a breach, or alleged breach, of an Environmental Law; 

  

	 	(ii)	any accident, fire, explosion or other event of any type involving an emission or substance which is capable of causing harm to any living organism or the environment; or

  

	 	(iii)	any other environmental contamination. 

 Environmental
Law means any law or regulation concerning the protection of health and safety, the environment or any emission or substance which is capable of causing harm to any living organism or the environment. 
  

	(b)	The Borrower must ensure that it is, and has been, in compliance with all Environmental Law and Environmental Approvals applicable to it, where failure to do so has or is reasonably
likely to have a Material Adverse Effect or result in any liability for a Finance Party. 

  

	(c)	The Borrower must promptly upon becoming aware notify the Security Agent of: 

  

	 	(i)	any Environmental Claim current, or to its knowledge, pending or threatened; 

  

	 	(ii)	any circumstances reasonably likely to result in an Environmental Claim; or 

  

	 	(iii)	any suspension, revocation or notification of any Environmental Approval, 

 which has or, if substantiated, is reasonably likely to either have a Material Adverse Effect or result in any liability for a Finance Party. 
  

 50 

	(d)	The Borrower must indemnify each Finance Party against any loss or liability which: 

  

	 	(i)	that Finance Party incurs as a result of any actual or alleged breach by an Obligor of any Environmental Law by any person; and 

  

	 	(ii)	would not have arisen if that Finance Party had not entered into a Finance Document, 

 unless it is caused by that Finance Party’s gross negligence or wilful misconduct. 
  

	16.7	Maintenance Reserve Account 

  

	(a)	To procure, by enforcing its rights under the Management Agreement, that the Manager pays into the Maintenance Reserve Account such sums as it is obliged to pay under the Management
Agreement on the dates on which such payment is to be made. 

  

	(b)	All sums standing to the credit of the Maintenance Reserve Account shall be applied in accordance with the Management Agreement. 

  

	16.8	Acquisition of the Superior Lease 

  

	(a)	In the event that either of the Obligors acquire the Superior Lease, the relevant Obligor shall as soon as reasonably practicable, and in any event within five (5) Business
Days of the date of the acquisition of the Superior Lease grant to the Security Agent a first ranking legal charge over the Superior Lease, in form and substance satisfactory to the Security Agent (the “Legal Charge”).

  

	(b)	The Obligors shall procure that no Affiliate of the Obligors shall, acquire the Superior Lease, unless that Affiliate grants to the Security Agent a first ranking debenture
comprising a legal charge over the Superior Lease and a floating charge over the undertaking of the relevant entity, such debenture to be form and substance satisfactory to the Security Agent (the “Affiliate Debenture”).

  

	(c)	The relevant Obligor shall, or in the case of the Affiliate Debenture, shall procure that the relevant Affiliate shall, provide the Security Agent with a certified copy of the
minutes of the meetings of the board of directors of the relevant party authorising the signature and/or execution of the Legal Charge or the Affiliate Debenture (as applicable) by named directors or a named director and the company secretary or
other applicable authorised signatories on behalf of the relevant party. 

  

	(d)	The Legal Charge or the Affiliate Debenture (as applicable) shall be a Finance Document. 

  

	16.9	Extension of the Head Lease 

  

	(a)	In the event that the Borrower obtains an extension to the term of the Headlease (“Head Lease Extension”), the Borrower shall as soon as reasonably practicable, and in any
event within five (5) Business Days of the date of the Head Lease Extension: 

  

	 	(i)	grant to the Security Agent a first ranking legal charge over the Head Lease Extension, such charge in form and substance satisfactory for the Agent (the “Head Lease
Charge”); and 

  

	 	(ii)	provide the Security Agent with a certified copy of the minutes of the meetings of the board of directors of the Borrower authorising the signature and/or execution

  

 51 

	 	    	(as appropriate) of the legal charge set out in paragraph (i) above by named directors or a named director and the company secretary or other applicable authorised signatories
on behalf of the Borrower. 

  

	(b)	The Head Lease Charge shall be a Finance Document. 

  

	16.10	Perfection of the Share Security 

  

	(a)	As soon as reasonably practicable following the Utilisation Date, the Obligors shall deliver to the Security Agent an executed copy of the share register of each of the
Borrower and BRE/ Grosvenor showing the inscription of each of the Share Pledge, the Pingleton Share Pledge (BRE/Grosvenor) and the Pingleton Security Agreement in it. 

  

	(b)	As soon as reasonably practicable following completion of the Permitted Reorganisation, the Obligors shall deliver to the Security Agent an executed copy of the share register of
the Borrower showing the inscription of the Pingleton Share Pledge in it. 

  

	16.11	Loan to Value 

 The Borrower must ensure that at all
times to Loan to Value (as determined by reference to the most recent Valuation supplied pursuant to Clause 14.2 (Valuations) is not greater than eighty per cent (80%). 
  

	16.12	Actual Interest Cover 

 On each Quarter Date falling
in the period specified in the left hand column in the table below the Actual Interest Cover shall not be less than the percentage specified in the right hand column in the table: 
  

			
	 Period
	  	Actual Interest Cover
	 From the date of first Utilisation until 30 September 2007 inclusive
	  	115%
	 From 30 September 2007 until 30 September 2008 inclusive
	  	120%
	 From 30 September 2008 until 30 September 2009 inclusive
	  	130%
	 From 30 September 2009 until 30 September 2010 inclusive
	  	135%
	 From 30 September 2010 until 30 September 2011 inclusive
	  	145%
	 From 30 September 2011 until 30 September 2013 inclusive
	  	150%

  

	16.13	Rectification of Financial Covenants 

  

	(a)	If there is any failure to satisfy the requirement of clause 16.11 (Loan to Value) or clause 16.12 (Actual Interest Cover) then the Borrower shall have five (5) Business Days
within which to remedy the default by either (i) depositing a cash sum into the Operating Account to make up the income shortfall, or (ii) prepaying part of the Loan in either case in the amount the Security Agent certifies is sufficient
to ensure that the relevant test is satisfied. 

  

 52 

	(b)	The Borrower may only exercise the cure right under paragraph (a) above twice in any twelve month period, including consecutive quarters, but not more than four times during
the term of the Facility. 

  

	16.14	Non Resident Landlord Scheme 

 The Borrower must
obtain, maintain and comply with any authorisation necessary to ensure that the Rental Income may be paid to the Borrower without any withholding or deduction on account of tax. 
  

	16.15	Operating Lease Variation 

 The Borrower and the
Guarantor shall complete a variation of the Operating Lease within fourteen (14) days of the first Utilisation to amend rental payments for Real Estate Investment Trust purposes. 
  

	17	DEFAULT 

  

	17.1	Events of Default 

 Each of the events set out in
this Clause is an Event of Default. 
  

	17.2	Non-payment 

 The Obligors does not pay on the due
date any amount payable by it under the Finance Documents in the manner required under the Finance Documents, unless the non-payment: 
  

	 	(a)	is caused by technical or administrative error; and 

  

	 	(b)	is remedied within three Business Days of the due date. 

  

	17.3	Breach of other obligations 

  

	(a)	Any of the Obligors does not comply with any term of: 

  

	 	(i)	Clauses 15.5 (Negative pledge), 15.6 (Disposals) or 15.8 (Lending and guarantees) to 15.13 (Shares and dividends) inclusive; or 

  

	 	(ii)	Clauses 16.1 (Occupational Leases), 16.5 (Insurances), 16.11 (Loan to Value) or 16.12 (Interest cover); or 

  

	(b)	Any of the Obligors does not comply with any term of the Finance Documents (other than any term referred to in Clause 17.2 (Non-payment) or paragraph (a) above), unless the
non-compliance: 

  

	 	(i)	is capable of remedy; and 

  

	 	(ii)	is remedied within ten (10) days of the earlier of any Finance Party giving notice and the Borrower or the Guarantor, as appropriate, becoming aware of the non-compliance.

  

 53 

	17.4	Misrepresentation 

 A representation made or
repeated by the Obligors in any Finance Document or in any document delivered by or on behalf of the Obligors under any Finance Document is incorrect in any material respect when made or deemed to be repeated unless the relevant matter: 

 

	(a)	is capable of remedy; and 

  

	(b)	is remedied within ten (10) days of the earlier of any Finance Party giving notice and the Obligors, as appropriate, becoming aware of the non-compliance.

  

	17.5	Insolvency 

 Any of the following occurs in respect
of the Obligors: 
  

	 	(a)	it is, or is deemed for the purposes of any law to be, unable to pay its debts as they fall due or insolvent; 

  

	 	(b)	it admits its inability to pay its debts as they fall due; 

  

	 	(c)	it suspends making payments on any of its debt or announces an intention to do so (save in respect of debts where it has a fide dispute with a creditor and a reasonable prospect of
success, and is not involved in disputes with the general body of its creditors); 

  

	 	(d)	by reason of actual or anticipated financial difficulties, it begins negotiations with any creditor for the rescheduling of any of its indebtedness; or 

  

	 	(e)	a moratorium is declared in respect of any of its indebtedness. 

 If a moratorium occurs in respect of the Obligors, the ending of the moratorium will not remedy any Event of Default caused by the moratorium, and notwithstanding any other term of the Finance Documents that Event of Default will continue
to be outstanding unless and until it is expressly waived by the Security Agent. 
  

	17.6	Insolvency proceedings 

  

	(a)	Except as provided below, any of the following occurs in respect of the Obligors: 

  

	 	(i)	any step is taken with a view to a moratorium or a composition, assignment or similar arrangement with any of its creditors; 

  

	 	(ii)	a meeting of its shareholders, directors or other officers is convened for the purpose of considering any resolution for, to petition for or to file documents with a court or any
registrar for, its winding-up, administration or dissolution or any such resolution is passed; 

  

	 	(iii)	any person presents a petition, or files documents with a court or any registrar, for its winding-up, administration or dissolution; 

  

	 	(iv)	an order for its winding-up, administration or dissolution is made; 

  

 54 

	 	(v)	any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or similar officer is appointed in respect of it or
any of its assets; 

  

	 	(vi)	its shareholders, directors or other officers request the appointment of, or give notice of their intention to appoint, a liquidator, trustee in bankruptcy, judicial custodian,
compulsory manager, receiver, administrative receiver, administrator or similar officer; or 

  

	 	(vii)	any other analogous step or procedure is taken in any jurisdiction. 

  

	(b)	Paragraph (a) above does not apply to a vexatious or frivolous petition for winding-up presented by a creditor which is being contested in good faith and with due diligence and is
discharged or struck out within 14 days. 

  

	17.7	Creditors’ process 

 Any attachment,
sequestration, distress, execution or analogous event affects any asset(s) of the Borrower and is not discharged within 14 days. 
  

	17.8	Cessation of business 

 Any Obligor ceases, or
threatens to cease, to carry on business. 
  

	17.9	Effectiveness of Finance Documents 

  

	(a)	It is or becomes unlawful for the Obligors to perform any of its obligations under the Finance Documents. 

  

	(b)	Any Finance Document is not effective in accordance with its terms or is alleged by the Obligors to be ineffective in accordance with its terms for any reason.

  

	(c)	The Obligors repudiate a Finance Document or evidences an intention to repudiate a Finance Document. 

  

	17.10	Ownership 

 Save for pursuant to the Permitted
Reorganisation or a Permitted Transfer (as defined in clause 5.2(a)) the Obligors cease to be legally and beneficially wholly owned Subsidiaries either directly or indirectly of Pingleton without the prior consent of the Lenders. 
  

	17.11	Headlease 

 Forfeiture proceedings with respect to
the Headlease are commenced or the Headlease is forfeited. 
  

	17.12	Major damage 

  

	(a)	Any material part of the Building is destroyed or damaged; and 

  

	(b)	in the opinion of the Majority Lenders, taking into account the amount and timing of receipt of the proceeds of insurance effected in accordance with the terms of this Agreement,
the destruction or damage has or would be reasonably likely to have a Material Adverse Effect. 

  

 55 

	17.13	Compulsory Purchase 

  

	(a)	Any material part of the Building is compulsorily purchased or the applicable local authority makes an order for the compulsory purchase of all or any part of the Building; and

  

	(b)	in the opinion of the Majority Lenders, taking into account the amount and timing of any compensation payable, the compulsory purchase has or would be reasonably likely to have a
Material Adverse Effect. 

  

	17.14	Material adverse change 

 Any event or series of
events occurs which, in the determination of the Majority Lenders, has or would be reasonably likely to have a Material Adverse Effect. 
  

	17.15	Acceleration 

 If an Event of Default is
outstanding, the Security Agent may (and shall if instructed by the Majority Lenders) by notice to the Obligors: 
  

	 	(a)	cancel all or any part of the Total Commitments; and/or 

  

	 	(b)	declare that all or part of any amounts outstanding under the Finance Documents are: 

  

	 	(i)	immediately due and payable; and/or 

  

	 	(ii)	payable on demand by the Security Agent acting on the instructions of the Majority Lenders. 

 Any notice given under this Subclause will take effect in accordance with its terms. 
  

	18	SECURITY AND SECURITY AGENT 

  

	18.1	Appointment of Security Agent 

  

	(a)	The Security Agent shall hold the benefit of the covenants, mortgages and charges given by each party to the Finance Documents (other than the Finance Parties) upon trust for the
Finance Parties pursuant to this Clause. 

  

	(b)	Each of the Finance Parties irrevocably appoints the Security Agent to act as its agent and trustee in connection with the Security Documents and for such purposes irrevocably
authorises the Security Agent to take such action and to exercise and carry out all the discretions, authorities, rights, powers and duties as are specifically delegated to the Security Agent in the Security Documents together with such powers and
discretions as are incidental to those duties. The Security Agent shall have no duties or responsibilities except those expressly set out in this Agreement and the Security Documents. 

  

	18.2	Duties of the Security Agent 

 The Security Agent
shall, subject to the other terms of this Agreement, act under the Security Documents in accordance with the instructions of the Finance Parties and shall hold the benefit of the covenants, mortgages and charges given by the Borrower in the Finance
Documents upon trust for the Finance Parties. 
  

 56 

	18.3	No fiduciary duties 

 The Security Agent shall act
solely as agent and trustee for the Finance Parties and shall not be deemed to be acting as trustee for any other person and shall not assume or be deemed to have assumed any obligation as agent or trustee for, or any relationship of agency or trust
with, the Borrower. 
  

	18.4	Rights and discretions of Security Agent 

  

	(a)	The Security Agent will be entitled to rely on any communication or document believed by it to be genuine and correct and to have been communicated or signed by the person by whom
it purports to be communicated or signed and shall not be liable to any of the parties to the Finance Documents for any of the consequences of such reliance. 

  

	(b)	The Security Agent shall not be obliged to take or commence any legal action or proceedings against any person arising out of or in connection with the Security Documents until it
shall have been indemnified or secured to its satisfaction against any and all costs, claims and expenses (including, but not limited to, legal fees and expenses which it may expend or incur in such legal action or proceeding).

  

	(c)	The Security Agent shall be entitled to obtain, pay for and rely on the advice of any professional advisers selected by it given in connection with the Security Documents or any of
the matters contemplated by the Security Documents, and shall not be liable to the Finance Parties for any of the consequences of such reliance. 

  

	(d)	With respect to its own participation in any of the Senior Liabilities, the Security Agent shall have the same rights and powers under and in respect of the Security Documents as
though it was not also acting as agent and trustee for the Finance Parties. The Security Agent may, without liability to account, accept deposits from, lend money to and generally engage in any kind of banking or trust business with or for the
Borrower as if it was not the agent and trustee for the Finance Parties. 

  

	(e)	The Security Agent shall accept without investigation, requisition or objection such title as any person may have to the undertaking, property and assets the subject of the Security
Documents and shall not be bound or concerned to examine or enquire into nor be liable for any defect or failure in the title of any person whether such effect or failure was known to the Security Agent or might have been discovered upon examination
or enquiry and whether capable of remedy or not nor for any failure on the part of the Security Agent to give notice to any third party or the Security Documents or otherwise perfect or register the security created by the Security Documents.

  

	(f)	On the enforcement (whether successful or not) of all or any of the Security Documents, the Security Agent shall be entitled to deduct from the proceeds of each enforcement its
costs, charges and expenses incurred in connection with such enforcement. 

  

	18.5	Exclusion of liability 

 Neither the Security Agent
nor any of its directors, employees or agents shall be liable for any action taken or omitted to be taken by it or any of them under or in connection with the Security Documents unless caused by its or their negligence or wilful misconduct. Any
director, employee or agent of the Security Agent may rely on this Subclause and enforce its terms under the Contracts (Rights of Third Parties) Act 1999. 
  

 57 

	18.6	Responsibility for documentation 

  

	(a)	The Security Agent shall not be responsible for any statements, representations or warranties in the Security Documents or for any information supplied or provided or hereafter to
be supplied or provided to or by the Security Agent in respect of any matter relating to the Security Documents or for the execution, effectiveness, genuineness, validity, enforceability or sufficiency of such documents or of any other document
referred to in any Finance Document or for the recoverability of any of the Senior Liabilities or any of the other sums to become due and payable pursuant to the Security Documents. 

  

	(b)	Each of the Finance Parties acknowledge that it will, independently and without reliance on the Security Agent and based on such documents and information as it shall deem
appropriate at the time, make its own decisions in taking or not taking action under the Security Documents. 

  

	18.7	Indemnity to Security Agent 

 The Finance Parties
agree to indemnify the Security Agent (to the extent not reimbursed by the Borrower) rateably according to their respective participations in the aggregate of the Senior Liabilities from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits costs, expenses and disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against the Security Agent in its capacity as agent and trustee for the Finance Parties
or in any way relating to or arising out of the Security Documents or any action taken or omitted by the Security Agent in enforcing or preserving the rights of the Finance Parties under the Security Documents provided that none of the Finance
Parties shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Security Agent’s negligence or wilful misconduct. 

 

	18.8	Resignation of Security Agent 

  

	(a)	Subject to the appointment and acceptance of a successor Security Agent as provided below, the Security Agent may resign and, if required to do so in writing by the Finance Parties,
will resign at any time by giving to the Finance Parties not less than 30 days’ notice of its intention to do so. 

  

	(b)	Upon receipt of a notice under paragraph (a) above, the Finance Parties shall appoint as successor Security Agent any person selected by the Finance Parties which is willing
and able to act as such agent for the Senior Liabilities. If no such successor Security Agent selected by the Finance Parties shall have accepted such appointment within 30 days after such Security Agent’s giving of notice of resignation then
the Security Agent shall have the right to appoint any reputable and experienced financial institution as successor Security Agent. 

  

	(c)	The appointment of any successor Security Agent under this Clause shall take effect upon notice of that appointment being given to the Finance Parties and the Borrower (on behalf of
itself and the Finance Parties). 

  

	(d)	Upon notice being given under paragraph (c) above, the resigning Security Agent shall be discharged from any further obligation under the Finance Documents and its successor
and each of the other parties to this Agreement and to the Security Documents shall have the same rights and obligations towards each other as they would have had if such successor had been a party to this Agreement and the Security Documents in
place of the resigning Security Agent. The resigning Security Agent shall make over to its successor all such records as its successor may require to carry out its duties. 

  

 58 

	(e)	The Security Agent may from time to time in its sole discretion by notice to the Finance Parties and the Borrower (on behalf of itself and the Finance Parties) designate a different
office in the United Kingdom from which its duties as the Security Agent will thereafter be performed. 

  

	18.9	Pingleton Share Pledge 

 The Security Agent agrees
to release the Pingleton Share Pledge (BRE/Grosvenor) at such time as he Borrower may request on the condition that Pingleton, simultaneously with the release of the Pingleton Share Pledge (BRE/Grosvenor), enters into the Pingleton Share Pledge.

  

	19	EVIDENCE AND CALCULATIONS 

  

	19.1	Accounts 

 Entries in accounts maintained by a
Finance Party in connection with this Agreement are prima facie evidence of the matters to which they relate for the purpose of any litigation or arbitration proceedings. 
  

	19.2	Certificates and determinations 

 Any certification
or determination by a Finance Party of a rate or amount under the Finance Documents will be, in the absence of manifest error, conclusive evidence of the matters to which it relates. 
  

	19.3	Calculations 

 Any interest or fee accruing under
this Agreement accrues from day to day and is calculated on the basis of the actual number of days elapsed and a year of 365 days. 
  

	20	FEES AND INDEMNITIES 

  

	20.1	Arrangement fee and Term-out fee 

 The Borrower must
pay to the Security Agent for the account of the Original Lender the fees in the amount and in the manner agreed in the Fee Letter between the Original Lender and the Borrower. 
  

	20.2	Other Indemnities 

  

	(a)	The Borrower must indemnify each Finance Party against any loss or liability which that Finance Party incurs as a consequence of: 

  

	 	(i)	the occurrence of any Event of Default; 

  

	 	(ii)	any failure by the Borrower to pay any amount due under a Finance Document on its due date; 

  

	 	(iii)	(other than by reason of default or negligence by that Finance Party) the Loan not being made after a Request has been delivered for the Loan; 

  

 59 

	 	(iv)	the Loan (or part of the Loan) not being prepaid in accordance with this Agreement; or 

  

	 	(v)	any amount being received by a Finance Party in a currency other than the currency in which the amount is expressed to be payable under the relevant Finance Document.

  

	(b)	The Borrower must indemnify each Finance Party against any loss or liability incurred by it as a result of: 

  

	 	(i)	investigating any event which that Finance Party reasonably believes to be a Default; or 

  

	 	(ii)	acting or relying on any notice which that Finance Party reasonably believes to be genuine, correct and appropriately authorised. 

  

	20.3	Break Costs 

  

	(a)	The Borrower must pay to each Lender its Break Costs if a Loan or overdue amount is repaid or prepaid otherwise than on an Interest Payment Date applicable to it.

  

	(b)	Break Costs are the amount (if any) determined by the relevant Lender by which: 

  

	 	(i)	the interest which that Lender would have received for the period from the date of receipt of any part of its share in a Loan or an overdue amount to the last day of the applicable
Interest Period for that Loan or overdue amount if the principal or overdue amount received had been paid on the last day of that Interest Period; 

 exceeds 
  

	 	(ii)	the amount which that Lender would be able to obtain by placing an amount equal to the amount received by it on deposit with a leading bank in the appropriate interbank market for a
period starting on the Business Day following receipt and ending on the last day of the applicable Interest Period. 

  

	(c)	Each Lender must supply to the Security Agent for the Borrower details of the amount of any Break Costs claimed by it under this Clause. 

  

	21	EXPENSES 

  

	21.1	Initial costs 

 The Borrower must pay to each
Finance Party the amount of all costs and expenses (including legal fees subject to any pre-agreed cap) reasonably incurred by it in connection with the negotiation, preparation, printing and execution of the Finance Documents. 
  

	21.2	Subsequent costs 

 The Borrower must pay to each
Finance Party the amount of all costs and expenses (including legal fees) reasonably incurred by it in connection with: 
  

	 	(a)	the negotiation, preparation, printing and execution of any Finance Document (other than a Transfer Certificate) executed after the date of this Agreement; and

  

	 	(b)	any amendment, waiver or consent requested by or on behalf of the Borrower. 

  

 60 

	21.3	Enforcement costs 

 The Borrower must pay to each
Finance Party the amount of all costs and expenses (including legal and servicer’s fees) properly incurred by it in connection with the enforcement of, or the preservation of any rights under, any Finance Document. 
  

	22	AMENDMENTS AND WAIVERS 

  

	22.1	Change of currency 

 If a change in any currency of
a country occurs (including where there is more than one currency or currency unit recognised at the same time as the lawful currency of a country), the Finance Documents will be amended to the extent the Lenders (acting reasonably and after
consultation with the Borrower) determine is necessary to reflect the change. 
  

	22.2	Amendments and waivers 

  

	(a)	Except as provided in this clause any term of the Finance Documents may be amended or waived with the agreement of the Borrower and the Security Agent (acting on the instructions of
the Majority Lenders). The Security Agent may effect, on behalf of any Finance Party, any amendment or waiver allowed under this clause. 

  

	(b)	The Security Agent must promptly notify the other parties of any amendment or waiver effected by it under paragraph (a) above. Any such amendment or waiver is binding on all
the parties. 

  

	22.3	Exception 

 An amendment or waiver which has the
effect of changing or which relates to: 
  

	(a)	the definition of Majority Lenders; 

  

	(b)	an extension of the date for payment of any amount due under the Finance Documents; 

  

	(c)	a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable; 

  

	(d)	an increase in, or an extension of, any Commitment; 

  

	(e)	a change to an Obligor other than in accordance with the terms of the Finance Documents; 

  

	(f)	a release of any Security Document other than in accordance with the terms of the Finance Documents; 

  

	(g)	any provision which expressly requires the consent of all the Lenders; 

  

	(h)	clauses 2.2 (Nature of Lender’s rights and obligations), clause 23 (Changes to the Finance Parties) or this clause; 

 may only be made with the consent of all the Lenders. 
  

 61 

	22.4	No amendment or waiver 

  

	(a)	No amendment or waiver relating to the rights or obligations of any Finance Party may be effected without the consent of that Finance Party. 

  

	(b)	No amendment or waiver relating to the rights or obligations of the Counterparty may be effected without the consent of the Hedging Counterparty if the Hedging Counterparty is an
Original Lender or an Affiliate. 

  

	22.5	Waivers and remedies cumulative 

 The rights of each
Finance Party under the Finance Documents: 
  

	 	(a)	may be exercised as often as necessary; 

  

	 	(b)	are cumulative and not exclusive of its rights under the general law; and 

  

	 	(c)	may be waived only in writing and specifically. 

 Delay in
exercising or non-exercise of any right is not a waiver of that right. 
  

	23	CHANGES TO THE PARTIES 

  

	23.1	Assignments and transfers by Borrower 

 The Borrower
must not assign or transfer any of its rights and obligations under the Finance Documents without the prior consent of the Security Agent. 
  

	23.2	Assignments by the Lenders 

 A Lender may assign all
or any part of its rights under the Finance Documents without restriction. 
  

	23.3	Transfer by the Lenders 

  

	(a)	In addition to the Lender’s rights of assignment under Clause 23.2 (Assignment by the Lenders and subject to Clause 15.14 (Securitisation and Syndication)), a Lender may
transfer (including by novation), in accordance with this Clause, all or any part of its rights and obligations under the Finance Documents: 

  

	 	(i)	in connection with a securitisation of the Facility, to a Qualifying Lender without restriction; and 

  

	 	(ii)	in connection with a syndication of the Facility, to a Qualifying Lender (other than a U.K. Non-Bank Lender or a Treaty Lender that is not a licensed bank in both its jurisdiction
of incorporation and the place where its lending office is located) in consultation with the Borrower. 

  

	(b)	If a Lender (the Existing Lender) wishes to transfer all or any part of its rights and obligations under this Agreement to any person (the New Lender), such transfer
may be effected by way of: 

  

	 	(i)	a novation by the delivery to the Borrower of a duly completed Transfer Certificate in accordance with the provisions of this Clause; or 

  

 62 

	 	(ii)	the New Lender confirming to the Security Agent and the Borrower in form and substance satisfactory to the Security Agent that it is bound by the terms of this Agreement as a
Lender. On the transfer becoming effective in this manner the Existing Lender will be released from its obligations under this Agreement to the extent that they are transferred to the New Lender. 

  

	(c)	For a novation, on the date specified in the Transfer Certificate: 

  

	 	(i)	the New Lender will assume the rights and obligations of the Existing Lender expressed to the subject of the novation in the Transfer Certificate in substitution for the Existing
Lender; and 

  

	 	(ii)	the Existing Lender will be released from those obligations and cease to have those rights. 

  

	(d)	The Borrower and each other Finance Party irrevocably authorises the Security Agent to execute any duly completed Transfer Certificate on its behalf. 

  

	(e)	The Security Agent shall promptly notify the Borrower of the execution on its behalf of any Transfer Certificate. The Security Agent is not obliged to execute a Transfer Certificate
until it has completed all know your customer requirements to its satisfaction. The Security Agent must promptly notify the Existing Lender and the New Lender if there are any such requirements. 

  

	(f)	Any reference in this Agreement to a Lender includes a New Lender but excludes a Lender if no amount is or may be owed to or by it under this Agreement. 

  

	23.4	Representatives 

 A Finance Party may act in
relation to the Finance Documents through its personnel and agents and may appoint a servicer to act as its representative in connection with the Finance Documents. 
  

	24	DISCLOSURE OF INFORMATION 

 Each Lender and the
Security Agent may disclose a copy of any Finance Document, any information about the Borrower, the Property, the Business, any Occupational Lease, any occupational tenant under any Lease Document, BRE/ Grosvenor, the Facility or any other
information which it has acquired under or in connection with any Finance Documents (including, without limitation, all information provided by or on behalf of the Borrower under Clause 14.2 (Monitoring of Property)) to: 
  

	 	(d)	any of its Affiliates, delegates or sub-delegates or any person to, or through whom it sub-participates or assigns or transfers (or may potentially sub-participate or assign or
transfer) any of its rights and/or obligations under the Finance Documents; 

  

	 	(e)	any other investors or potential investors (including any investors, sub-participant or Lenders) in any of its rights and/or obligations under the Finance Documents and any other
person in relation to a securitisation of the Loan; 

  

	 	(f)	its professional advisers and the professional advisers of any other person referred to in paragraphs (a) and (b) above; 

  

 63 

	 	(g)	any rating agency and its professional advisers; 

  

	 	(h)	a stock exchange listing authority or similar body; and 

  

	 	(i)	a governmental, banking, taxation or other regulatory authority; 

 any information to be disclosed in relation to (a) and (b) above, shall be subject to the person to whom the information is to be given first agreeing to keep such information confidential. 
 The Lenders may also disclose to any person any information which is publicly available (other than as a result of a breach by a Finance Party of this
Clause), and any information which it is required to disclose to such person under applicable law or regulation. 
  

	25	SET-OFF 

 A Lender may set off any matured
obligation owed to it by the Borrower under the Finance Documents (to the extent beneficially owned by that Lender) against any obligation (whether or not matured) owed by that Lender to the Borrower, regardless of the place of payment, booking
branch or currency of either obligation. If the obligations are in different currencies, the Lender may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. 
  

	26	SEVERABILITY 

 If a term of a Finance Document is or
becomes illegal, invalid or unenforceable in any jurisdiction, that will not affect: 
  

	 	(a)	the legality, validity or enforceability in that jurisdiction of any other term of the Finance Documents; or 

  

	 	(b)	the legality, validity or enforceability in other jurisdictions of that or any other term of the Finance Documents. 

  

	27	COUNTERPARTS 

 Each Finance Document may be executed
in any number of counterparts. This has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document. 
  

	28	NOTICES 

  

	28.1	In writing 

  

	(a)	Any communication in connection with a Finance Document must be in writing and, unless otherwise stated, may be given in person, by post or fax. 

  

	(b)	For the purpose of the Finance Documents, an electronic communication will be treated as being in writing. 

  

	(c)	Unless it is agreed to the contrary, any consent or agreement required under a Finance Document must be given in writing. 

  

 64 

	28.2	Contact details 

  

	(a)	Except as provided below, the contact details of each Party for all communications in connection with the Finance Documents are those notified by that Party for this purpose to the
Security Agent on or before the date it becomes a Party. 

  

	(b)	The contact details of the Borrower for this purpose are: 

  

			
	Address:	 	c/o Strategic Hotels & Resorts
		 	77 West Wacker Drive
		 	Suite 4600
		 	Chicago, Illinois
		 	60601 USA
	Fax number:	 	312 - 658 - 5799
	Attention:	 	General Counsel/Treasurer.

  

	(c)	The contact details of the Guarantor for this purpose are: 

  

			
	Address:	 	c/o Paul Hastings Janofsky & Walker
		 	88 Wood Street
		 	London
		 	EC2V 7AJ
	Fax number:	 	020 7796 2233
	Attention:	 	Managing Partner.

  

	(d)	The contact details of the Original Lender and the Security Agent for this purpose are: 

  

			
	Address:	 	Barclays Capital Mortgage Servicing Limited
		 	5 The North Colonnade
		 	Canary Wharf
		 	London E14 4BB
	Fax number:	 	020 7516 7671
	Attention:	 	Gareth Allatt

  

	(e)	Any Party may change its contact details by giving five Business Days’ notice to the Security Agent or (in the case of the Security Agent) to the other Parties.

  

	(f)	Where a Finance Party nominates a particular department or officer to receive a communication, a communication will not be effective if it fails to specify that department or
officer. 

  

	29	GOVERNING LAW 

 This Agreement is governed by
English law. 
  

	30	LIMITATION OF LIABILITY 

 It is agreed that the
personal liability of the Obligors under the Finance Documents other than under clause 20.1 (Arrangement Fee and Term-out Fee) and the Fees Letter shall be limited to the net proceeds of sale of all property and assets and the respective
undertakings of the Obligors mortgaged, charged, pledged or assigned by any Security Documents. 
  

 65 

	31	ENFORCEMENT 

  

	31.1	Jurisdiction 

  

	(a)	The English courts have exclusive jurisdiction to settle any dispute in connection with any Finance Document. 

  

	(b)	The English courts are the most appropriate and convenient courts to settle any such dispute and each Obligor waives objection to those courts on the grounds of inconvenient forum
or otherwise in relation to proceedings in connection with any Finance Document. 

  

	(c)	This Clause is for the benefit of the Finance Parties only. To the extent allowed by law, a Finance Party may take: 

  

	 	(i)	proceedings in any other court; and 

  

	 	(ii)	concurrent proceedings in any number of jurisdictions. 

  

	31.2	Service of process 

  

	(a)	The Borrower irrevocably appoints the Guarantor as its agent under the Finance Documents for service of process in any proceedings before the English courts.

  

	(b)	If any person appointed as process agent is unable for any reason to act as agent for service of process, the Borrower must immediately appoint another agent on terms acceptable to
the Security Agent. Failing this, the Security Agent may appoint another agent for this purpose. 

  

	(c)	Each Obligor agrees that failure by a process agent to notify it of any process will not invalidate the relevant proceedings. 

  

	(d)	This Clause does not affect any other method of service allowed by law. 

 THIS AGREEMENT has been entered into on the date stated at the beginning of this Agreement. 
  

 66 

 SCHEDULE 1 
 THE PROPERTY 
 Land and Building. 
 The Headlease in respect of the Borrower and the Operating Lease in respect of the Guarantor as the context requires. 
  

 67 

 SCHEDULE 2 
 CONDITIONS PRECEDENT DOCUMENTS 
 TO BE DELIVERED BEFORE THE REQUEST 
 PART ONE 
  

	1	BORROWER AND BRE/GROSVENOR 

  

	(a)	A copy of the constitutional documents of the Obligors, Pingleton, Lomar Holdco and BRE/Grosvenor. 

  

	(b)	A copy of a resolution of the board of directors of the Borrower, Pingleton, Lomar Holdco and BRE/Grosvenor approving the terms of, and the transactions contemplated by, the Finance
Documents. 

  

	(c)	A specimen of the signature of each person authorised on behalf of the Borrower, Pingleton, Lomar Holdco and BRE/Grosvenor to execute or witness the execution of any Finance
Document or to sign or send any document or notice in connection with any Finance Document or other ancillary documents. 

  

	(d)	A certificate of an authorised signatory of the Borrower: 

  

	 	(i)	confirming that utilising the Total Commitments in full would not breach any limit binding on it; and 

  

	 	(ii)	certifying that each copy document specified in this Schedule is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

  

	(e)	Evidence required by the Lenders for the purpose of any know your customer requirements. 

  

	(f)	Confirmation in writing that the agent of the Borrower, Pingleton and BRE/ Grosvenor under the Finance Documents for service of process in England & Wales that it has
accepted its appointment. 

  

	(g)	A certified copy of the Share Purchase Agreement. 

  

	(h)	A structure chart showing the ownership of the Obligors, Lomar Holdco, Pingleton and BRE/Grosvenor. 

  

	(i)	The Steps Plan and completion of all documents and approvals listed in it. 

  

	(j)	A certified copy of the Disclosure Letter. 

  

	(k)	Certified copies of the powers of attorney for Pingleton, BRE/Grosvenor, Lomar Holdco, the Guarantor and the Borrower. 

  

	2	VALUATION AND SURVEY 

  

	(a)	A copy of the Initial Valuation appropriately addressed to the Finance Parties (including a reinstatement valuation). 

  

 68 

	(b)	An appropriately addressed environmental report (including an environmental contamination and phase I assessment) and an appropriately addressed structural survey on the Property
addressed to the Finance Parties. 

  

	3	INSURANCE 

 Evidence that the insurance cover in
force in respect of the Building and Business complies with the terms of this Agreement and the necessary premiums have been paid, and a copy of the insurance policies (to the extent available). 
  

	4	PROPERTY 

  

	(a)	All title documents relating to the Borrower’s and Guarantor’s interests in the Property: 

  

	 	(i)	if any title document is at the Stamp Office, a copy of that document and an undertaking from the Borrower’s solicitors to deliver it to the Security Agent or its solicitors
when received by the Borrower’s solicitors from the Stamp Office; or 

  

	 	(ii)	if any document is at the Land Registry, a certified copy of that document and a copy of a letter from the Obligor’s solicitors directing the registry to issue the relevant
title documents to the Security Agent or its solicitors; or arrangements satisfactory to the Security Agent for them to be held for it by the Borrower’s solicitors. 

  

	(b)	The results of the Land Registry Searches in favour of the Security Agent on the appropriate forms against all of the registered titles comprising the Borrower’s and
Guarantor’s respective interests in the Property and: 

  

	 	(i)	giving not less than 25 Business Days’ priority beyond the date of the Security Agreement; and 

  

	 	(ii)	showing no adverse entries. 

  

	(c)	An appropriately addressed certificate or report on the title to the Borrower’s and Guarantor’s prepared by Paul, Hastings, Janofsky & Walker (Europe) LLP,
together with an appropriately addressed overview prepared by Berwin Leighton Paisner LLP. 

  

	(d)	Evidence that all Security Interests (other than the Security Documents) affecting the Obligor’s interests in the Property have been, or will be, discharged by the Utilisation
Date and payment of all sums due to Barclays Bank PLC including any breakage costs in connection with the settlement of the facility agreement between, inter alia, Barclays Bank PLC, the Borrower and the Guarantor dated 15 October 2003.

  

	(e)	All necessary Land Registry application forms in relation the charging of the Property in favour of the Security Agent (including a form to note the obligation to make further
advances, a form to register the restriction contained in the Security Agreement and a form for disclosable overriding interests), duly completed, accompanied by payment of the applicable Land Registry fees. 

  

	(f)	All necessary Land Registry application forms in relation to the charging of the Property in favour of the Security Agent (including a form to note the obligation to make further
advances, a form to register the restriction contained in the Guarantor Security Agreement and a form for disclosable overriding interests), duly completed, accompanied by payment of the applicable Land Registry fees. 

  

 69 

	(g)	Copies of all authorisations required in connection with the charging of the Property in favour of the Security Agent (if any). 

  

	(h)	A copy of a notice to the reversioner of the Headlease to the Security Agent, accompanied by payment of the appropriate registration fees. 

  

	(i)	A copy of a rent receipt showing due payment of the latest instalment of rent under the Headlease. 

  

	5	SECURITY AND OTHER FINANCE DOCUMENTS 

  

	(a)	The Security Agreement. 

  

	(b)	The Guarantor Security Agreement. 

  

	(c)	The Pingleton Security Agreement. 

  

	(d)	The Pingleton Share Pledge (BRE/Grosvenor) 

  

	(e)	The Share Pledge. 

  

	(f)	The Lomar Holdco Share Charge. 

  

	(g)	The Subordination Agreement. 

  

	(h)	Share certificates in the Guarantor and Lomar Holdco and duly executed stock transfer forms. 

  

	(i)	Completed forms 395 in respect of the Security Agreement, the Pingleton Security Agreement, the Pingleton Share Pledge (BRE/Grosvenor), the Guarantor Security Agreement the Lomar
Holdco Share Charge and the Share Pledge. 

  

	(j)	A notice to each bank operating an Account, each party to the Share Purchase Agreement, and each party to the Tax Deed substantially in the agreed form set out in the Security
Agreement, the Guarantor Security Agreement and the Pingleton Security Agreement. 

  

	(k)	Copies of the bank mandates for the Accounts. 

  

	6	MANAGER AND MANAGEMENT 

  

	(a)	A copy of the Management Agreement. 

  

	(b)	A consent from the Manager in relation to the sale of BRE/Grosvenor to Pingleton. 

  

	(c)	The Lender’s satisfaction with the arrangements to discharge the incentive management fee due under the Management Agreement on or prior to completion.

  

	(d)	copies of the IHLC Agreement. 

  

	(e)	copies of all licences and certificates relating to the operation of Business. 

  

 70 

	(f)	the Non-Disturbance Agreement. 

  

	7	TAX 

  

	(a)	A copy of the VAT registration certificate for the Borrower. 

  

	(b)	Evidence that the Obligors have duly elected to waive exemption in relation to the Property before the date of this Agreement. 

  

	(c)	Evidence that the Borrowers has obtained the approval of HM Revenue & Customs Centre for non-Residents (as applicable) to the payment of rents by tenants without
withholding tax. 

  

	8	OTHER DOCUMENTS AND EVIDENCE 

  

	(a)	The Hedging Strategy Letter. 

  

	(b)	Evidence of the payment of all outstanding arrangement fees and any outstanding fees of Berwin Leighton Paisner LLP, Arendt & Medernach and the Valuer or authorisation in
the request for their deduction from the first Utilisation. 

  

	(c)	A copy of the completion statement under the Share Purchase Agreement. 

  

	(d)	Legal opinion from 

  

	 	(i)	Berwin Leighton Paisner LLP; and 

  

	 	(ii)	Arendt & Medernach, legal advisers to the Finance Parties in Luxemburg. 

  

	(e)	A copy of any other authorisation or other document, opinion or assurance which the Security Agent has notified the Borrower before the first Utilisation Date is necessary in
connection with the entry into and performance of, and the transactions contemplated by, any Finance Document or for the validity and enforceability of any Finance Document. 

 PART TWO 
 Conditions Subsequent 
  

	1.	To be delivered within 7 days of Pingleton acquiring the entire issued share capital of the Borrower 

  

	(a)	The Pingleton Share Pledge. 

  

	(b)	A copy of a resolution of the board of directors of Pingleton approving the terms of the Pingleton Share Pledge. 

  

	(c)	A legal opinion from Arendt & Medernach in respect of the Pingleton Share Pledge. 

  

	(d)	Completed forms 395 in respect of the Pingleton Share Pledge. 

  

	2.	To be delivered within 14 days of the date of this Agreement 

  

	(a)	Evidence to the Lender’s satisfaction that the insurance cover in force in respect of the Building and the Business has been amended to reflect the declared valued of
£55,000,000 

  

 71 

 and that the certificates have been amended naming the Security Agent as co-insured and naming Barclays
Bank PLC and the Security Agent in the insured column for Material Damage. 
  

	(b)	Evidence that proper notification of the Obligors’ election to waive exemption in relation to the Property was received by HM Revenue & Customs.

  

 72 

 SCHEDULE 3 
 MANDATORY COSTS 
  

	(a)	The Mandatory Cost is an addition to the interest rate to compensate lenders for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial
Services Authority (or, in either case, any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank. 

  

	(b)	On the first day of each Interest Period (or as soon as possible thereafter) the agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each
Lender, in accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to the percentage participation of each Lender in
the relevant Loan) and will be expressed as a percentage rate per annum. 

  

	(c)	The Additional Cost Rate for any Lender lending from a Facility Office in a Participating Member State will be the percentage notified by that Lender to the agent this percentage
will be certified by that Lender in its notice to the agent to be its reasonable determination of the cost (expressed as a percentage of that Lender’s participation in all Loans made from that Facility Office) of complying with the minimum
reserve requirements of the European Central Bank in respect of loans made from that Facility Office. 

  

	(d)	The Additional Cost Rate for any Lender lending from a Facility Office in the United Kingdom will be calculated by the Security Agent as follows: 

  

			
	

	 	per cent. per annum

 Where: 
  

	 	A	is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Lender is from time to time required to maintain as an interest free cash
ratio deposit with the Bank of England to comply with cash ratio requirements. 

  

	 	B	is the percentage rate of interest (excluding the Margin and the Mandatory Cost and, if the relevant Loan is an Unpaid Sum, the additional rate of interest specified in clause
6.3(Interest on overdue amounts)) payable for the relevant Interest Period on that Loan. 

  

	 	C	is the percentage (if any) of Eligible Liabilities which that Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.

  

	 	D	is the percentage rate per annum payable by the Bank of England to the Agent on interest bearing Special Deposits. 

  

	 	E	is designed to compensate Lenders for amounts payable under the Fees Rules and is calculated by the Agent as being the average of the most recent rates of charge supplied by the
Reference Banks to the Agent (as set out below) and expressed in pounds per £1,000,000. 

  

 73 

 For the purposes of this schedule: 
 “Eligible Liabilities” and “Special Deposits” have the meanings given to them from time to time under or pursuant to the
Bank of England Act 1998 or (as may be appropriate) by the Bank of England; 
 “Fees Rules” means the rules on periodic fees
contained in the FSA Supervision Manual or such other law or regulation as may be in force from time to time in respect of the payment of fees for the acceptance of deposits; 
 “Fee Tariffs” means the fee tariffs specified in the Fees Rules under the activity group A.1 Deposit acceptors (ignoring any minimum fee
or zero rated fee required pursuant to the Fees Rules but taking into account any applicable discount rate); 
 “Participating Member
State” means any member of the European Communities that adopts or has adopted the euro as its lawful currency in accordance with legislation of the European Community relating to Economic and Monetary Union; 
 “Tariff Base” has the meaning given to it in, and will be calculated in accordance with, the Fees Rules. 
  

	(e)	In application of the above formulae, A, B, C and D will be included in the formulae as percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). a
negative result obtained by subtracting D from B shall be taken as zero. the resulting figures shall be rounded to four decimal places. 

  

	(f)	If requested by the Security Agent, each Reference Bank shall, as soon as practicable after publication by the Financial Services Authority, supply to the Security Agent, the rate
of charge payable by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services Authority (calculated for this purpose by that Reference bank as being the
average of the Fee Tariffs applicable to that Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of that Reference Bank. 

  

	(g)	Each Lender shall supply any information required by the Agent for the purpose of calculating its Additional Cost Rate. In particular, but without limitation, each Lender shall
supply the following information on or prior to the date on which it becomes a Lender: 

  

	 	(i)	the jurisdiction of its Facility Office; and 

  

	 	(ii)	any other information that the Agent may reasonably require for such purpose. 

 Each Lender shall promptly notify the Security Agent of any change to the information provided by it pursuant to this paragraph. 
  

	(h)	The percentages of each Lender for the purpose of A and C above and the rates of charge of each Reference Bank for the purpose of E above shall be determined by the Security Agent
based upon the information supplied to it pursuant to this schedule and on the assumption that, unless a Lender notifies the Security Agent to the contrary, each Lender’s obligations in relation to cash ratio deposits and Special Deposits are
the same as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility Office. 

  

 74 

	(i)	The Security Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Lender and shall be entitled to
assume that the information provided by any Lender or Reference Bank pursuant to this schedule is true and correct in all respects. 

  

	(j)	The Security Agent shall distribute the additional amounts received as a result of the mandatory cost to the lenders on the basis of the Additional Cost Rate for each Lender based
on the information provided by each Lender and each Reference Bank pursuant to this schedule. 

  

	(k)	Any determination by the Agent pursuant to this schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the
absence of manifest error, be conclusive and binding on all Parties. 

  

	(l)	The Security Agent may from time to time, after consultation with the Borrower and the Lenders, determine and notify to all parties any amendments which are required to be made to
this schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority which
replaces all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all parties. 

  

 75 

 SCHEDULE 4 
 FORM OF REQUEST 
  

	To:	BARCLAYS BANK PLC as Original Lender 

  

	From:	[            ] 

  

	Date:	[            ] 

 [BORROWER] – £[AMOUNT] Facility Agreement 
 dated
[                    ], 2006 (the Agreement) 
  

	(a)	We refer to the Agreement. This is a Request. 

  

	(b)	We wish to borrow [a Loan/Loans] on the following terms: 

  

	 	(i)	Utilisation Date: [being a Business Day falling within the Availability Period]. 

  

	 	(ii)	Amount: [                    ]. Interest Period (1) month.

  

	 	(iii)	Amount: [                    ]. Interest Period (3) months.

  

	(c)	Our payment instructions are: 

 [
  

	(d)	We confirm that each condition precedent and condition subsequent (as appropriate) under the Agreement which must be satisfied on the date of this Request is so satisfied to the
extent not waived by the Security Agent. 

  

	(e)	[We confirm that you may deduct from the Loan (although the amount of the Loan will remain the amount requested above): 

  

	 	(i)	[[amount to refinance the existing Barclays facility—being principal, interest and break costs, amount to be confirmed] 

  

	 	(ii)	stamp duty land tax; 

  

	 	(iii)	the outstanding balance of the arrangement fee being £[            ];] 

  

	 	(iv)	Berwin Leighton Paisner LLP’s fees; 

  

	 	(v)	the fees of the Valuer; 

  

	 	(iv)	the fees of the Finance Parties; and 

  

	 	(vi)	Land Registry fees.] 

  

 76 

	(f)	This Request is irrevocable. 

 By:

 [BORROWER] 
  

 77 

 SCHEDULE 5 
 FORM OF TRANSFER CERTIFICATE 
 This transfer certificate relates to a Facility Agreement dated [*] and made between,
among others, (1) Barclays Bank PLC and (2) [NEWCO] in respect of a Sterling term loan facility (the Facility Agreement, which term shall include any amendments or supplements to it). This is a Transfer Certificate. 
 Terms defined and references construed in the Facility Agreement shall have the same meanings and construction in this Transfer Certificate. 
  

	(a)	*[insert full name of Existing Lender] (the Existing Lender) transfers by novation to *[insert full name of New Lender] (the New Lender) the Existing Lender’s
rights and obligations [referred to in the Schedule to this Transfer Certificate] in accordance with clause 21 of the Facility Agreement by signing this Transfer Certificate. 

  

	(b)	This executed Transfer Certificate will take effect in accordance with the provisions of clause 21 of the Facility Agreement on *[insert date of transfer]. 

 

	(c)	The New Lender: 

  

	 	(i)	[represents and warrants that as at the date of this Transfer Certificate it is a [Qualifying Lender];] 

  

	 	(ii)	confirms that it has received a copy of the Facility Agreement together with such other documents and information as it has requested in connection with this transaction;

  

	 	(iii)	confirms that it has not relied and will not rely on the Existing Lender to check or enquire on its behalf into the legality, validity, effectiveness, adequacy, accuracy or
completeness of any such documents or information; 

  

	 	(iv)	agrees that it has not relied and will not rely on the Existing Lender to assess or keep under review on its behalf the financial condition, creditworthiness, condition, affairs,
status or nature of the Borrower or any other party to the Finance Documents; and 

  

	 	(v)	[confirms that its lending office is in the United Kingdom.] 

  

	(d)	The Existing Lender does not: 

  

	 	(i)	make any representation or warranty or assume any responsibility with respect to the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents; or

  

	 	(ii)	assume any responsibility for the financial condition of the Borrower or any other party to the Finance Documents or any other document or for the performance and observance by the
Borrower or any other party to the Finance Documents or any other document of its or their obligations and any and all conditions and warranties, whether express or implied by law or otherwise, are excluded. 

  

	(e)	The New Lender confirms that its lending office and address for notices for the purposes of the Facility Agreement are as set out in the schedule to this Transfer Certificate.

  

 78 

	(f)	The Existing Lender gives notice to the New Lender (and the New Lender acknowledges and agrees with the Existing Lender) that nothing in any Finance Document requires the Existing
Lender to: 

  

	 	(i)	accept a re-transfer from the New Lender of any of the rights and obligations assigned or transferred under clause 23 (changes to parties) of the Facility Agreement; or

  

	 	(ii)	support any losses incurred by the New Lender by reason of non-performance by the Borrower of its obligations under any Finance Document or otherwise. 

  

	(g)	This Transfer Certificate is governed by English law. 

  

 79 

 THE SCHEDULE 
 Rights and obligations to be transferred by way of novation 
 [All of the Existing Lender’s rights and
obligations under the Finance Documents.] 
 Administrative details of New Lender 
 *[insert full name of New Lender] 
  

			
	 lending office
	  	Address for notices
		  	 *[address]

		  	 Attention:

		  	 Telex:

		  	 Answerback:

		  	 Fax:

  

			
	 [EXISTING LENDER]
	  	[NEW LENDER]
		
	 By:
	  	By:
	
	 BARCLAYS CAPITAL MORTGAGE SERVICING LIMITED

	
	 By:

  

 80 

 SCHEDULE 6 
 FORM OF COMPLIANCE CERTIFICATE 
  

	To:	Barclays Capital Mortgage Servicing Limited 

  

	From:	[BORROWER] 

  

	Date:	[                    ] 

 [BORROWER] - [£][AMOUNT] Facility Agreement 
 dated [                    ], 2006 (the Agreement) 
  

	(a)	We refer to the Agreement. This is a Compliance Certificate. 

  

	(b)	We confirm that as at [15 January 2007/15 April 2007/15 July 2007/15 October 2007/the relevant Interest Payment Date] we are in compliance of our obligations under
Clause 16.12 (Actual Interest Cover) of the Agreement. 

  

	(c)	We set out below calculations establishing the figures in paragraph 2 above: 

 Actual Interest Cover: (as determined in accordance with the definition of Actual Interest Cover) 
 X% 
  

	(d)	We confirm that no Event of Default is outstanding as at [15 January 2007,/15 April 2007/15 July 2007/15 October 2007/the relevant Interest Payment Date].1 

 [BORROWER] 
 By: 
  

	1	If this statement cannot be made, the certificate should identify any Event of Default that is outstanding and the steps, if any, being taken to remedy it.

  

 81 

 SCHEDULE 7 
 ROLL-OVER NOTICE 
  

	To:	Barclays Capital Mortgage Servicing Limited 

  

	From:	[BORROWER] 

  

	Date:	[                    ] 

 [BORROWER] - [£][AMOUNT] Facility Agreement 
 dated [            ], 2006 (the Agreement) 
  

	(a)	We refer to the Agreement. This is a Roll-over Notice. 

  

	(b)	We confirm that on the next Roll-over Date which is [                    ] 2006.

  

	 	(v)	We intend to prepay the sum of £[                    ] which is a
[one/three] months loan [and £[                    ] which is a three month loan]. 

  

	 	(vi)	We request you to allocate the sum of £[                    ] which is [the
whole][part] of the existing [one/three] month loan to [the existing][a][three/one] month loan. 

  

	 	(vii)	We request you to divide the existing [one/three] month loan as follows: [            ] 

  

	(c)	We confirm that no Event of Default is outstanding at the relevant Roll-over Date. 

 [BORROWER] 
 By: 
  

 82 

 SCHEDULE 8 
 FORM OF TERM OUT NOTICE 
  

	To:	Barclays Capital Mortgage Servicing Limited 

  

	From:	[BORROWER] 

  

	Date:	[                    ] 

 [BORROWER] - [£][AMOUNT] Facility Agreement 
 dated [            ], 2006 (the Agreement) 
  

	(a)	We refer to the Agreement. This is a Term-out Notice. 

  

	(b)	We confirm that as at the date of receipt of this Notice we are in compliance of our obligations under Clause 4.4 (Term-out option and amortisation) of the Agreement.

  

	(c)	We confirm that no Event of Default is outstanding as at the date of service of this notice.. 

 [BORROWER] 
 By: 
  

 83 

 SCHEDULE 9 
 AMORTISATION SCHEDULE 
  

				
	 Interest Payment Date
	  	Repayment Instalment
	 15 January 2010
	  	£	1,030,000
	 15 July 2010
	  	£	1,030,000
	 15 January 2011
	  	£	1,030,000
	 15 July 2011
	  	£	1,030,000
	 15 January 2012
	  	£	1,030,000
	 15 July 2012
	  	£	1,030,000
	 15 January 2013
	  	£	1,030,000
	 15 July 2013
	  	£	1,030,000

  

 84 

 SCHEDULE 10 
 Net Operating Income 
  

 85 

 SIGNATORIES 
  

									
	Borrower	 		 	 In the presence of:

				
	 GROSVENOR SQUARE HOTEL S.A.R.L.
	 		 		 	
					
	 By:
	 	 /s/ Charles Etonde
	 		 	 Witness Signature:
	 	 /s/ Clause Feyereisen

		 	 Charles Etonde
	 		 	 Witness Name:
	 	 Clause Feyereisen

		 	 Authorized Attorney
	 		 	 Witness Address:
	 	 7, Rue Gelle, L-1620, Luxembourg

		 		 		 	 Witness Occupation:
	 	 Attorney

				
	Original Lender	 		 		 	
				
	 BARCLAYS BANK PLC
	 		 		 	
					
	 By:
	 	 /s/ Andrew J. Watson
	 		 		 	
				
	Security Agent	 		 		 	
		
	 BARCLAYS CAPITAL MORTGAGE SERVICING LIMITED
	 	
					
	 By:
	 	 /s/ Stephen Northage
	 		 		 	
				
	Guarantor	 		 		 	
				
	 LOMAR HOTEL COMPANY LIMITED
	 		 		 	
					
	 By:
	 	 /s/ Charles Etonde
	 		 		 	
		 	 Charles Etonde
	 		 		 	
		 	 Authorized Attorney
	 		 		 	

  

 86Loan and Security Agreement

 Exhibit 10.10 
 LOAN AND SECURITY AGREEMENT 
 Dated as of September 1, 2006 
 Between 
 SHR SCOTTSDALE X, L.L.C
and SHR SCOTTSDALE Y, L.L.C., 
 as Borrower 
 and 
 CITIGROUP GLOBAL MARKETS REALTY CORP., 
 as Lender 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	I.    DEFINITIONS; PRINCIPLES OF CONSTRUCTION	  	1
			
	Section 1.1	  	Definitions	  	1
	Section 1.2	  	Principles of Construction	  	28
		
	II.    GENERAL TERMS	  	28
			
	Section 2.1	  	Loan; Disbursement to Borrower	  	28
	Section 2.2	  	Interest; Loan Payments; Late Payment Charge	  	29
	Section 2.3	  	Prepayments	  	30
	Section 2.4	  	Regulatory Change; Taxes	  	33
	Section 2.5	  	Conditions Precedent to Closing	  	34
		
	III.    CASH MANAGEMENT	  	38
			
	Section 3.1	  	Cash Management	  	38
		
	IV.    REPRESENTATIONS AND WARRANTIES	  	46
			
	Section 4.1	  	Borrower Representations	  	46
		
	V.    BORROWER COVENANTS	  	57
			
	Section 5.1	  	Affirmative Covenants	  	57
	Section 5.2	  	Negative Covenants	  	66
	Section 5.3	  	Ground Lease Provisions	  	69
		
	VI.    INSURANCE; CASUALTY; CONDEMNATION; RESTORATION	  	73
			
	Section 6.1	  	Insurance Coverage Requirements	  	73
	Section 6.2	  	Condemnation and Insurance Proceeds	  	78
	Section 6.3	  	Insurance Provisions in Management Agreement	  	82
		
	VII.    IMPOSITIONS, OTHER CHARGES, LIENS AND OTHER ITEMS	  	82
			
	Section 7.1	  	Impositions and Other Charges	  	82
	Section 7.2	  	No Liens	  	82
	Section 7.3	  	Contest	  	83

  

 -i- 

					
	VIII.     TRANSFERS, INDEBTEDNESS AND SUBORDINATE LIENS	  	83
			
	Section 8.1	  	Restrictions on Transfers and Indebtedness	  	83
	Section 8.2	  	Sale of Building Equipment	  	84
	Section 8.3	  	Immaterial Transfers and Easements, etc	  	84
	Section 8.4	  	Transfers of Interests in Borrower	  	85
	Section 8.5	  	Loan Assumption	  	86
	Section 8.6	  	Notice Required; Legal Opinions	  	87
	Section 8.7	  	Leases	  	88
	Section 8.8	  	Exchange	  	90
		
	IX.    INTEREST RATE CAP AGREEMENT	  	91
			
	Section 9.1	  	Interest Rate Cap Agreement	  	91
	Section 9.2	  	Pledge and Collateral Assignment	  	91
	Section 9.3	  	Covenants	  	92
	Section 9.4	  	Representations and Warranties	  	93
	Section 9.5	  	Payments	  	94
	Section 9.6	  	Remedies	  	94
	Section 9.7	  	Sales of Rate Cap Collateral	  	96
	Section 9.8	  	Public Sales Not Possible	  	96
	Section 9.9	  	Receipt of Sale Proceeds	  	96
	Section 9.10	  	Extension Interest Rate Cap Agreement	  	97
	Section 9.11	  	Filing of Financing Statements Authorized	  	97
		
	X.    MAINTENANCE OF PROPERTY; ALTERATIONS	  	97
			
	Section 10.1	  	Maintenance of Property	  	97
	Section 10.2	  	Alterations and Expansions	  	97
		
	XI.    BOOKS AND RECORDS, FINANCIAL STATEMENTS, REPORTS AND OTHER INFORMATION	  	100
			
	Section 11.1	  	Books and Records	  	100
	Section 11.2	  	Financial Statements	  	100
		
	XII.    ENVIRONMENTAL MATTERS	  	103
			
	Section 12.1	  	Representations	  	103
	Section 12.2	  	Covenants. Compliance with Environmental Laws	  	103
	Section 12.3	  	Environmental Reports	  	104
	Section 12.4	  	Environmental Indemnification	  	104
	Section 12.5	  	Recourse Nature of Certain Indemnifications	  	105

  

 -ii- 

					
	XIII.    RESERVED	  	105
		
	XIV.    SECURITIZATION AND PARTICIPATION	  	105
			
	Section 14.1	  	Sale of Note and Securitization	  	105
	Section 14.2	  	Cooperation with Rating Agencies	  	106
	Section 14.3	  	Securitization Financial Statements	  	106
	Section 14.4	  	Securitization Indemnification	  	106
	Section 14.5	  	Retention of Servicer	  	109
		
	XV.    ASSIGNMENTS AND PARTICIPATIONS	  	109
			
	Section 15.1	  	Assignment and Acceptance	  	109
	Section 15.2	  	Effect of Assignment and Acceptance	  	109
	Section 15.3	  	Content	  	110
	Section 15.4	  	Register	  	110
	Section 15.5	  	Substitute Notes	  	110
	Section 15.6	  	Participations	  	111
	Section 15.7	  	Disclosure of Information	  	111
	Section 15.8	  	Security Interest in Favor of Federal Reserve Bank	  	111
		
	XVI.    RESERVE ACCOUNTS	  	112
			
	Section 16.1	  	Tax Reserve Account	  	112
	Section 16.2	  	Insurance Reserve Account	  	112
	Section 16.3	  	Intentionally Deleted	  	113
	Section 16.4	  	FF&E Reserve Account	  	113
	Section 16.5	  	Letter of Credit Provisions	  	114
		
	XVII.    DEFAULTS	  	114
			
	Section 17.1	  	Event of Default	  	114
	Section 17.2	  	Remedies	  	118
	Section 17.3	  	Remedies Cumulative; Waivers	  	120
	Section 17.4	  	Costs of Collection	  	120
		
	XVIII.    SPECIAL PROVISIONS	  	120
			
	Section 18.1	  	Exculpation	  	120
		
	XIX.    MISCELLANEOUS	  	122
			
	Section 19.1	  	Survival	  	122
	Section 19.2	  	Lender’s Discretion	  	123
	Section 19.3	  	Governing Law	  	123

  

 -iii- 

					
	Section 19.4	  	Modification, Waiver in Writing	  	124
	Section 19.5	  	Delay Not a Waiver	  	124
	Section 19.6	  	Notices	  	124
	Section 19.7	  	TRIAL BY JURY	  	125
	Section 19.8	  	Headings	  	126
	Section 19.9	  	Severability	  	126
	Section 19.10	  	Preferences	  	126
	Section 19.11	  	Waiver of Notice	  	126
	Section 19.12	  	Expenses; Indemnity	  	126
	Section 19.13	  	Exhibits and Schedules Incorporated	  	128
	Section 19.14	  	Offsets, Counterclaims and Defenses	  	129
	Section 19.15	  	Liability of Assignees of Lender	  	129
	Section 19.16	  	No Joint Venture or Partnership; No Third Party Beneficiaries	  	129
	Section 19.17	  	Publicity	  	129
	Section 19.18	  	Waiver of Marshalling of Assets	  	130
	Section 19.19	  	Waiver of Counterclaim and Other Actions	  	130
	Section 19.20	  	Conflict; Construction of Documents; Reliance	  	130
	Section 19.21	  	Prior Agreements	  	130
	Section 19.22	  	Counterparts	  	131
	Section 19.23	  	Joint and Several Liability	  	131
	Section 19.24	  	Contribution Among Co-Borrowers	  	131

  

 -iv- 

 EXHIBITS AND SCHEDULES 
  

			
	EXHIBIT A	  	TITLE INSURANCE REQUIREMENTS
	EXHIBIT B	  	SURVEY REQUIREMENTS
	EXHIBIT C	  	SINGLE PURPOSE ENTITY PROVISIONS
	EXHIBIT D	  	ENFORCEABILITY OPINION REQUIREMENTS
	EXHIBIT E	  	NON-CONSOLIDATION OPINION REQUIREMENTS
	EXHIBIT F	  	COUNTERPARTY OPINION REQUIREMENTS
	EXHIBIT G	  	FORM OF TENANT ESTOPPEL LETTER
	EXHIBIT H-1	  	BORROWER ORGANIZATIONAL STRUCTURE AT CLOSING
	EXHIBIT H-2	  	INTENTIONALLY DELETED
	EXHIBIT I	  	INTEREST RATE CAP AGREEMENT REQUIREMENTS
	EXHIBIT J	  	FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT
	EXHIBIT K	  	FORM OF SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT
	EXHIBIT L	  	INTENTIONALLY DELETED
	EXHIBIT M	  	COUNTERPARTY ACKNOWLEDGMENT
	EXHIBIT N	  	INTENTIONALLY DELETED
	EXHIBIT O	  	FORM OF INDEPENDENT DIRECTOR CERTIFICATE
	EXHIBIT P	  	INTENTIONALLY OMITTED
	EXHIBIT Q	  	FORM OF TRADEMARK SECURITY AGREEMENT
	EXHIBIT R	  	ARTICLE 8 OPT IN LANGUAGE
	SCHEDULE I	  	LITIGATION SCHEDULE
	SCHEDULE II	  	LIST OF EXCHANGE DOCUMENTS
	SCHEDULE III	  	PRE-APPROVED TRANSFEREES
	SCHEDULE IV	  	PRE-APPROVED MANAGERS
	SCHEDULE V	  	RELEASE PARCELS AND RELEASE PRICES
	SCHEDULE VI	  	INTENTIONALLY DELETED
	SCHEDULE VII	  	INTENTIONALLY DELETED

  

 -v- 

 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY AGREEMENT dated as of September 1, 2006 (as amended, restated, replaced, supplemented or otherwise modified from time to
time, this “Agreement”), between SHR SCOTTSDALE X, L.L.C., a Delaware limited liability company and SHR SCOTTSDALE Y, L.L.C., a Delaware limited liability company, (each a “Co-Borrower” and
collectively, on a joint and several liability basis, the “Borrower”) having an office at c/o Strategic Hotel Funding, L.L.C., 77 West Wacker Drive, Suite 4600, Chicago, Illinois 60601, and CITIGROUP GLOBAL MARKETS REALTY
CORP., a New York corporation, having an address at 388 Greenwich Street, New York, New York 10013 (together with its successors and assigns, “Lender”). 
 W I T N E S S E T H: 
 WHEREAS, Borrower desires to obtain the Loan (as hereinafter defined) from Lender; 
 WHEREAS, Lender is
willing to make the Loan to Borrower, subject to and in accordance with the terms of this Agreement and the other Loan Documents (as hereinafter defined). 
 NOW, THEREFORE, in consideration of the making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in this Agreement, 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 a bank or other financial
institution which has a long-term unsecured debt or counterparty rating of “AA-” (long term) and “A-1+” (short term) or higher by S&P and its equivalent by Moody’s and, if the counterparty is rated by Fitch, by Fitch.

 “Acceptable Management Agreement” shall mean, with respect to the Property, a new or amended management agreement
with the Manager which agreement (as applicable) shall be upon terms and conditions entered into by Borrower, Operating Lessee, and/or Manager with respect to the Property in accordance with the terms of Section 5.2.14 hereof.

 “Acceptable Manager” shall mean (i) the current Manager as of the Closing Date or any wholly-owned Affiliate
(whether direct or indirect) of said current Manager, (ii) at any time after the Closing Date, any Pre-approved Manager listed on Schedule IV hereto, provided each such property manager continues to be Controlled by substantially
the same Persons Controlling such property manager as of the Closing Date (or if such Manager is a publicly traded company, such Manager continues to be publicly traded on an established 

 securities market), (iii) any other hotel management company that manages a system of at least six (6) hotels
or resorts of a class and quality of at least as comparable to the Property (as reasonably determined by Manager and Operating Lessee; provided, however, Operating Lessee shall obtain Lender’s prior approval of such determination,
not to be unreasonably withheld) and containing not fewer than 1,500 hotel rooms in the aggregate (including hotel/condominium units under management) in the aggregate, (iv) any Close Affiliate of any of the foregoing Persons or (v) any
other reputable and experienced professional hotel management company with respect to which a Rating Agency Confirmation has been obtained. 
 “Accommodation Security Documents” shall mean the Security Instrument, the Assignment of Leases and UCC-1 Financing Statements which have been executed by Borrower and Operating Lessee in favor of Lender to secure
Borrower’s obligations under the Loan Documents. 
 “Account Agreement” shall mean the Account and Control
Agreement, dated the date hereof, among Lender, Borrower and Cash Management Bank. 
 “Account Collateral” shall have
the meaning set forth in Section 3.1.2. 
 “Acknowledgment” shall mean the Acknowledgment, dated on or
about the date hereof made by Counterparty, or as applicable, Acceptable Counterparty in the form of Exhibit M. 
 “Additional Non-Consolidation Opinion” shall have the meaning set forth in Section 4.1.29(b). 
 “Affiliate” shall mean, with respect to any specified Person, any other Person directly or indirectly Controlling or Controlled by or under direct or indirect common Control with, or any general partner or managing
member in, such specified Person. 
 “Agreement” shall mean this Agreement, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time. 
 “ALTA” shall mean American Land Title Association,
or any successor thereto. 
 “Alteration” shall mean any demolition, alteration, installation, improvement or
decoration of or to the Property or any part thereof or the Improvements (including FF&E) thereon (other than any of the foregoing that (i) is permitted to be done and actually is done by or on behalf of the Manager without the consent of
the Borrower (it being the intent of the parties that for this purpose amounts expended by Manager in respect of FF&E in the ordinary course of business from amounts reserved for FF&E under the Management Agreement shall be deemed not to be
an Alteration), or (ii) is paid for out of any reserve account described in Article XVI. 
 “Approved Bank”
shall have the meaning set forth in the Account Agreement. 
 “Assignment and Acceptance” shall mean an assignment
and acceptance entered into by Lender and an assignee, and accepted by Lender in accordance with Article XV and in substantially the form of Exhibit J or such other form customarily used by Lender in connection with the
participation or syndication of mortgage loans at the time of such assignment. 
  

 2 

 “Assignment of Leases” shall mean that certain first priority Assignment of
Leases, Rents, Hotel Revenue and Security Deposits, dated as of the date hereof, from Borrower and Operating Lessee, as assignor, to Lender, as assignee, assigning to Lender all of Borrower’s and Operating Lessee’s interest in and to the
Leases, Rents, Hotel Revenue and Security Deposits as security for the Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Assignment of Management Agreement” shall mean that certain Manager’s Consent, Subordination of Management Agreement and
Non-disturbance Agreement, dated the date hereof, among Lender, Borrower, Operating Lessee, and Manager, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Bankruptcy Code” shall mean Title 11, U.S.C.A., as amended from time to time and any successor statute thereto. 
 “Beneficial” when used in the context of beneficial ownership has the analogous meaning to that specified in Rule 13d-3 under the
Securities Exchange Act of 1934, as amended. 
 “Best of Borrower’s Knowledge”, shall mean the actual (as
opposed to imputed or constructive) present knowledge of: Cory Warning and Ryan Bowie after due inquiry, and without creating any personal liability on the part of any said individuals. In the case where the term “Best of Borrower’s
Knowledge” is used in the context of representations or warranties of Borrower to be made after the date hereof, the term shall include the Person or Persons, as applicable, that occupy the capacities of said individuals on the date such
representation or warranty to the extent that one or more of such individuals no longer occupy their current capacities. 
 “Borrower” has the meaning set forth in the first paragraph of this Agreement. 
 “Borrower’s Account” shall mean an account with any Person subsequently identified in a written notice from Borrower to Lender, which Borrower’s Account shall be under the sole dominion and control of
Borrower: 
 Bank:
[                    ] 
 ABA#:
[                    ] 
 Attention: [                    ] 
 Account Name: [                    ] 
 Account Number: [                    ]

 “Budget” shall mean the operating budget for the Property prepared by Manager on Borrower’s behalf, pursuant
to the Management Agreement, for the applicable Fiscal Year or other period setting forth, in reasonable detail, Manager’s estimates, consistent with the Management Agreement, of the anticipated results of operations of the Property, including
revenues from all sources, all Operating Expenses, Management Fees and Capital Expenditures. 
  

 3 

 “Building Equipment” shall have the meaning set forth in the Security Instrument.

 “Business Day” shall mean any day other than a Saturday, Sunday or any other day on which national banks in New
York, Arizona or in the state in which Servicer is located are not open for business. When used with respect to an Interest Determination Date, Business Day shall mean any day on which dealings in deposits in U.S. Dollars are transacted in the
London interbank market. 
 “Capital Expenditures” shall mean any amount incurred in respect of capital items which
in accordance with GAAP would not be included in Borrower’s annual financial statements for an applicable period as an operating expense of the Property. 
 “Cash” shall mean the legal tender of the United States of America. 
 “Cash and Cash Equivalents” shall mean any one or a combination of the following: (i) Cash, and (ii) U.S. Government Obligations. 
 “Cash Management Bank” shall mean LaSalle Bank National Association or any successor Approved Bank acting as Cash Management Bank
under the Account Agreement or other financial institution approved by the Lender and, if a Securitization has occurred, the Rating Agencies. 
 “Casualty” shall mean a fire, explosion, flood, collapse, earthquake or other casualty affecting the Property. 
 “CGM” shall have the meaning set forth in Section 14.4.2(b). 
 “CGM Group”
shall have the meaning set forth in Section 14.4.2(b). 
 “Close Affiliate” shall mean with respect
to any Person (the “First Person”) any other Person (each, a “Second Person”) which is an Affiliate of the First Person and in respect of which any of the following are true: (a) the Second Person owns, directly or
indirectly, at least 75% of all of the legal, Beneficial and/or equitable interest in such First Person, (b) the First Person owns, directly or indirectly, at least 75% of all of the legal, Beneficial and/or equitable interest in such Second
Person, or (c) a third Person owns, directly or indirectly, at least 75% of all of the legal, Beneficial and/or equitable interest in both the First Person and the Second Person. 
 “Closing Date” shall mean the date of this Agreement set forth in the first paragraph hereof. 
 “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 Accounts” shall have the meaning set forth in Section 3.1.1. 
  

 4 

 “Collection Account” shall have the meaning set forth in
Section 3.1.1. 
 “Condemnation” shall mean a taking or voluntary conveyance during the term hereof of
all or any part of the Property or any interest therein or right accruing thereto or use thereof, as the result of, or in settlement of, any condemnation or other eminent domain proceeding by any Governmental Authority, whether or not the same shall
have actually been commenced. 
 “Control” shall mean (i) the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise and (ii) the ownership, direct or indirect, of no less than 51% of the voting securities of
such Person, and the terms Controlled, Controlling and Common Control shall have correlative meanings. 
 “Counterparty” shall mean the counterparty to the Interest Rate Cap Agreement and any counterparty under a Replacement Interest Rate Cap Agreement or Extension Interest Rate Cap Agreement and, if applicable, any
credit support provider identified in the Interest Rate Cap Agreement, Replacement Interest Rate Cap Agreement or Extension Interest Rate Cap Agreement. 
 “Counterparty Opinion” shall have the meaning set forth in Section 9.3(f). 
 “Current Debt Service Reserve Account” shall have the meaning set forth in Section 3.1.1. 
 “Debt” shall mean, with respect to any Person at any time, (a) indebtedness or liability of such Person for borrowed money whether or not evidenced by bonds, debentures, notes or other instruments, or for the
deferred purchase price of property or services; (b) obligations of such Person as lessee under leases which should have been or should be, in accordance with GAAP, recorded as capital leases; (c) current liabilities of such Person in
respect of unfunded vested benefits under plans covered by Title IV of ERISA; (d) obligations issued for, or liabilities incurred on the account of, such Person; (e) obligations or liabilities of such Person arising under letters of
credit, credit facilities or other acceptance facilities; (f) obligations of such Person under any guarantees or other agreement to become secondarily liable for any obligation of any other Person, endorsements (other than for collection or
deposit in the ordinary course of business) and other contingent obligations to purchase, to provide funds for payment, to supply funds to invest in any Person or otherwise to assure a creditor against loss; (g) obligations of such Person
secured by any Lien on any property of such Person, whether or not the obligations have been assumed by such Person; or (h) obligations of such Person under any interest rate or currency exchange agreement. 
 “Debt Service” shall mean, with respect to any particular period of time, scheduled interest payments under the Note. 

“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. 
  

 5 

 “Default Rate” shall have the meaning set forth in the Note. 
 “Disclosure Documents” shall have the meaning set forth in Section 14.4.1. 
 “Disqualified Transferee” shall mean any Person or its Close Affiliate that, (i) has (within the past five (5) years)
defaulted, or is now in default, beyond any applicable cure period, of its material obligations, under any material written agreement with Lender, any Affiliate of Lender, or, unless approved by the Rating Agencies, any other financial institution
or other person providing or arranging financing; (ii) has been convicted in a criminal proceeding for a felony or a crime involving moral turpitude or that is an organized crime figure or is reputed (as determined by Lender in its sole
discretion) to have substantial business or other affiliations with an organized crime figure; (iii) has at any time filed a voluntary petition under the Bankruptcy Code or any other federal or state bankruptcy or insolvency law; (iv) as
to which an involuntary petition (which was not subsequently dismissed within one hundred twenty (120) days) has at any time been filed under the Bankruptcy Code or any other federal or state bankruptcy or insolvency law; (v) has at any
time filed an answer consenting to or acquiescing 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; (vi) has at any time consented to or
acquiesced in or joined in an application for the appointment of a custodian, receiver, trustee or examiner for itself or any of its property; (vii) has at any time made an assignment for the benefit of creditors, or has at any time admitted
its insolvency or inability to pay its debts as they become due; or (viii) has been found by a court of competent jurisdiction or other governmental authority in a comparable proceeding to have violated any federal or state securities laws or
regulations promulgated thereunder. 
 “Downgrade” shall have the meaning as set forth in Section 9.3(c)
hereof. 
 “DSCR” shall mean, with respect to a particular period, the ratio of Net Operating Income to the aggregate
amount of Debt Service and the Mezzanine Loan Debt Service that is payable in respect of such period, as computed by Lender from time to time pursuant to the terms hereof, using in all cases, an assumed loan constant (instead of actual debt service
payable under such loan) per annum equal to the sum of (a) the strike price of the Interest Rate Cap Agreement in effect on the date of such determination, and (b) the weighted average of the LIBOR Margin (Mortgage) and the LIBOR Margin
that is applicable to the Mezzanine Loan, weighted on the basis of the outstanding principal balance of the Loan and the Mezzanine Loan outstanding as of such measurement date (which constant shall be calculated at all times using an actual/360
accrual convention). If no such period is specified, then the period shall be deemed to be the immediately preceding four (4) Fiscal Quarters. 
 “Eligibility Requirements” means, with respect to any Person, that such Person (i) has total assets (in name or under management) in excess of $600,000,000 and (except with respect to a pension advisory firm or
similar fiduciary) capital/statutory surplus or shareholder’s equity of $250,000,000 and (ii) is regularly engaged in the business of making or owning commercial real estate loans or operating commercial properties. 
 “Eligible Account” has the meaning set forth in the Account Agreement. 
  

 6 

 “Eligible Collateral “shall mean U.S. Government Obligations, Letters of Credit
or Cash and Cash Equivalents, or any combination thereof. 
 “Environmental Certificate” shall have the meaning set
forth in Section 12.2.1. 
 “Environmental Claim” shall mean any claim, action, cause of action,
investigation or written notice by any Person alleging potential liability (including potential liability for investigatory costs, cleanup costs, natural resource damages, property damages, personal injuries or penalties) arising out of, based upon
or resulting from (a) the presence, threatened presence, release or threatened release into the environment of any Hazardous Materials from or at the Property, or (b) the violation, or alleged violation, of any Environmental Law relating
to the Property. 
 “Environmental Event” shall have the meaning set forth in Section 12.2.1. 

“Environmental Indemnity” shall mean the Environmental Indemnity, dated the date hereof, made by Guarantor in favor of Lender.

 “Environmental Law” shall have the meaning provided in the Environmental Indemnity. 
 “Environmental Reports” shall have the meaning set forth in Section 12.1. 
 “ERISA” shall mean the United States Employee Retirement Income Security Act of 1974, as amended from time to time, and the
regulations promulgated and the rulings issued thereunder. 
 “Event of Default” shall have the meaning set forth in
Section 17.1(a). 
 “Excess Cash Flow” shall have the meaning set forth in Section 3.1.5.

 “Exchange” shall mean either (i) one or more “reverse exchanges” under Section 1031 of the
Internal Revenue Code of 1986, as amended, and Revenue Procedure 2000-37, 2002-2 C.B. 308, promulgated thereunder, pursuant to which one or more Qualified Intermediaries shall acquire and hold 100% of the indirect interests in Borrower and, upon
consummation of the sales or transfers of one or more other properties in connection with the Exchange, transfer, or cause to be transferred, 100% of the indirect interests in Borrower to Strategic Hotel Funding, L.L.C., CIMS Limited Partnership, an
Illinois limited partnership (provided Strategic Hotel Funding, L.L.C. owns directly or indirectly, not less than 85% equity interest in CIMS Limited Partnership), or other Affiliates of Strategic Hotel Funding, L.L.C. or (ii) one or more
transfers of up to 100% of the indirect interests in Borrower to Strategic Hotel Funding, L.L.C. or Affiliates of Strategic Hotel Funding, L.L.C., if, for any reason, the transaction fails to qualify as a “reverse exchange” under
Section 1031 of the Internal Revenue Code of 1986, as amended, all as generally contemplated by the Exchange Documents and in accordance with the terms of Section 8.8 of this Agreement, which establishment of the exchange at the closing of
the Loan shall be pursuant to those certain initial agreements, documents and instruments in the form reviewed and approved by Lender prior to the closing of the Loan, a list of which is attached hereto as Schedule II; provided, except as otherwise
provided in this definition, the ultimate 
  

 7 

 control of the Borrower is transferred only as otherwise permitted by this Agreement; provided further the Prime Lease
and Operating Lease initially entered into, and the parties thereto, may be restructured, merged, terminated, modified or replaced without restriction so long as such leases or replacements thereof remain subordinate to the rights of the holder of
the Loan. 
 “Exchange Act” shall have the meaning set forth in Section 14.4.1. 
 “Exchange Documents” shall mean the documents identified on as Schedule II. 
 “Exculpated Parties” shall have the meaning set forth in Section 18.1.1. 
 “Excusable Delay” shall mean a delay due to acts of god, governmental restrictions, stays, judgments, orders, decrees, enemy
actions, civil commotion, fire, casualty, strikes, work stoppages, shortages of labor or materials or other causes beyond the reasonable control of Borrower, but Borrower’s lack of funds in and of itself shall not be deemed a cause beyond the
control of Borrower. 
 “Expansion” shall mean any expansion or reduction of the Property or any portion thereof or
the Improvements thereon. 
 “Extension Interest Rate Cap Agreement” shall mean, following the Borrower’s
exercise of its option to extend the Maturity Date pursuant to Section 5 of the Note, an Interest Rate Cap Agreement or Agreements (together with the confirmations and schedules relating thereto), each from an Acceptable Counterparty and
satisfying the requirements set forth on Exhibit I hereto; provided that, to the extent any such interest rate cap agreement does not meet the foregoing requirements, an “Extension Interest Rate Cap Agreement” shall be
such interest rate cap agreement as may be approved by each of the Rating Agencies (such approval to be evidenced by the receipt of a Rating Agency Confirmation). 
 “FF&E” shall mean furniture, fixtures and equipment of the type customarily utilized in hotel properties in Arizona similar to the Property. 
 “FF&E Reserve Account” shall have the meaning set forth in Section 3.1.1. 
 “Final Completion” shall mean, with respect to any specified work, the final completion of all such work, including the
performance of all “punch list” items, as confirmed by an Officer’s Certificate and, with respect to any Material Alteration or Material Expansion, a certificate of the Independent Architect, if applicable. 
 “Fiscal Quarter” shall mean each quarter within a Fiscal Year in accordance with GAAP. 
 “Fiscal Year” shall mean the period commencing on the Closing Date and ending on and including December 31 of the calendar
year in which the Closing Date occurs and thereafter each twelve month period commencing on January 1 and ending on December 31 until the Debt is repaid in full, or such other common fiscal year of Borrower as Borrower may select from time
to time with the prior consent of Lender, such consent not to be unreasonably withheld. 
  

 8 

 “Fitch” shall mean Fitch Ratings Inc. 
 “Fountain” shall mean the decorative water feature on the Main Resort Parcel which is identified in the GaiaTech Physical
Property Report dated June 2006 in respect of the Property as requiring restoration or repair. 
 “GAAP” shall mean
the generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of comparable stature and authority within the accounting profession), or in such other statements by such entity as may be in general use by significant segments of the U.S. accounting profession,
to the extent such principles are applicable to the facts and circumstances on the date of determination, as appropriately modified by the Uniform System. 
 “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. 
 “Ground Lease” shall mean the ground lease
dated December 30, 1985 between the City of Scottsdale, a municipal corporation, as ground lessor, and the predecessors of Borrower, as lessee, in respect of the Ground Lease Property, as amended by the First Amendment to Ground Lease dated
November 17, 1986, Second Amendment to Ground Lease dated April 4, 1995, and Wall and Sign Agreement and Third Amendment to Lease dated May 19, 2003, as the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time. 
 “Ground Lease Property” shall mean the part of the Property which is the subject
premises of the Ground Lease, being the real and personal property demised to Borrower pursuant to the Ground Lease. 
 “Group
Services Fee” shall mean the expenses payable to Manager or any Affiliate as permitted under Section 9.5 of the Management Agreement or any similar provision in a replacement Management Agreement. 
 “Guarantor” shall mean, Strategic Hotel Funding, L.L.C., a Delaware limited liability company, which shall execute and deliver
the Recourse Guaranty on the Closing Date. 
 “Hazardous Materials” shall have the meaning provided in the
Environmental Indemnity. 
 “Holding Account” shall have the meaning set forth in Section 3.1.1.

 “Hotel Revenue” shall mean all revenues, income, Rents, issues, profits, termination or surrender fees, penalties
and other amounts arising from the use or enjoyment of 
  

 9 

 all or any portion of the Property, including, without limitation, the rental or surrender of any office space, retail
space, parking space, halls, stores, and offices of every kind, the rental or licensing of signs, sign space or advertising space and all membership fees and dues, rentals, revenues, receipts, income, accounts, accounts receivable, cancellation
fees, penalties, credit card receipts and other receivables relating to or arising from rentals, rent equivalent income, income and profits from guest rooms, meeting rooms, conference and banquet rooms, food and beverage facilities, health clubs,
spas, vending machines, parking facilities, telecommunication and television systems, guest laundry, the provision or sale of other goods and services, and any other items of revenue, receipts or other income as identified in the Uniform System.

 “Impositions” shall mean all taxes (including all ad valorem, sales (including those imposed on lease rentals),
use, single business, gross receipts, value added, intangible transaction, privilege or license or similar taxes), governmental assessments (including all assessments for public improvements or benefits, whether or not commenced or completed prior
to the date hereof and whether or not commenced or completed within the term of this Agreement), water, sewer or other rents and charges, excises, levies, fees (including license, permit, inspection, authorization and similar fees), and all other
governmental charges, in each case whether general or special, ordinary or extraordinary, or foreseen or unforeseen, of every character in respect of the Property and/or any Rents and Hotel Revenue (including all interest and penalties thereon),
which at any time prior to, during or in respect of the term hereof may be assessed or imposed on or in respect of or be a Lien upon (a) Borrower (including all income, franchise, single business or other taxes imposed on Borrower for the
privilege of doing business in the jurisdiction in which the Property is located), (b) the Property, or any other collateral delivered or pledged to Lender in connection with the Loan, or any part thereof, or any Rents or Hotel Revenue
therefrom or any estate, right, title or interest therein, or (c) any occupancy, operation, use or possession of, or sales from, or activity conducted on, or in connection with the Property or the leasing or use of all or any part thereof.
Nothing contained in this Agreement shall be construed to require Borrower to pay any tax, assessment, levy or charge imposed on (i) any tenant occupying any portion of the Property, (ii) any manager of the Property, including any Manager,
or (iii) Servicer, Lender or any other third party in the nature of a capital levy, estate, inheritance, succession, income or net revenue tax. 
 “Improvements” shall have the meaning set forth in the Security Instrument. 
 “Increased Costs” shall have the meaning set forth in Section 2.4.1. 
 “Indebtedness” shall mean, at any given time, the Principal Amount, together with all accrued and unpaid interest thereon and all other obligations and liabilities due or to become due to Lender pursuant hereto,
under the Note or in accordance with the other Loan Documents and all other amounts, sums and expenses paid by or payable to Lender hereunder or pursuant to the Note or the other Loan Documents. 
 “Indemnified Parties” shall have the meaning set forth in Section 19.12(b). 
 “Independent” shall mean, when used with respect to any Person, a Person who: (i) does not have any direct financial
interest or any material indirect financial interest in any Borrower or in any Affiliate of any Borrower, (ii) is not connected with Borrower or any 
  

 10 

 Affiliate of Borrower as an officer, employee, promoter, underwriter, trustee, partner, member, manager, creditor,
director, supplier, customer or person performing similar functions and (iii) is not a member of the immediate family of a Person defined in (i) or (ii) above. 
 “Independent Architect” shall mean an architect, engineer or construction consultant selected by Borrower which is Independent,
licensed to practice in the State and has at least five (5) years of architectural experience and which is reasonably acceptable to Lender. 
 “Independent Director”, “Independent Manager”, or “Independent Member” shall mean a Person who is not and will not be while serving and has never been (i) a member
(other than an Independent Member), manager (other than an Independent Manager), director, (other than an Independent Director), employee, attorney, or counsel of Borrower or its Affiliates (provided that Borrower and Mezzanine Borrower may not have
the same Independent Directors, Independent Managers or Independent Members), (ii) in the seven (7) years prior to the Closing Date, a customer, supplier or other Person who derives more than 1% of its purchases or revenues from its
activities with Borrower or its Affiliates, (iii) a direct or indirect legal or beneficial owner in such entity or any of its Affiliates, (iv) a member of the immediate family of any member, manager, employee, attorney, customer, supplier
or other Person referred to above, or (v) a person Controlling or under the common Control of anyone listed in (i) through (iv) above. A Person that otherwise satisfies the foregoing shall not be disqualified from serving as an
Independent Director or Independent Manager or Independent Member if such individual is at the time of initial appointment, or at any time while serving as such, is an Independent Director or Independent Manager or Independent Member, as applicable,
of a Single Purpose Entity affiliated with Borrower, other than the Mezzanine Borrower. 
 “Insurance Requirements”
shall mean, collectively, (i) all material terms of any insurance policy required pursuant to this Agreement and (ii) all material regulations and then-current standards applicable to or affecting the Property or any part thereof or any
use or condition thereof, which may, at any time, be recommended by the Board of Fire Underwriters, if any, having jurisdiction over the Property, or such other body exercising similar functions. 
 “Insurance Reserve Account” shall have the meaning set forth in Section 3.1.1(b). 
 “Insurance Reserve Amount” shall have the meaning set forth in Section 16.2. 
 “Insurance Reserve Trigger” shall mean Borrower’s failure to deliver to Lender not less than five Business Days prior to
each Payment Date (unless the prior notice to Lender provided evidence reasonably satisfactory to Lender that Borrower had prepaid such insurance premiums through a future Payment Date), evidence that all insurance premiums for the insurance
required to be maintained pursuant to the terms of this Agreement have been paid in full. 
 “Intangible” shall have
the meaning set forth in the Security Instrument. 
 “Interest Determination Date” shall have the meaning set forth
in the Note. 
 “Interest Period” shall have the meaning set forth in the Note. 
  

 11 

 “Interest Rate Cap Agreement” shall mean an Interest Rate Agreement or Agreements
(together with the confirmation and schedules relating thereto), or, with Lender’s prior written consent (which shall not be unreasonably withheld, delayed or conditioned), a swap or other interest rate hedging instrument, each between a
Counterparty and Borrower obtained by Borrower and collaterally assigned to Lender pursuant to this Agreement, and each satisfying the requirements set forth in Exhibit I and, in the case of a swap or other interest rate hedging
agreement consented to by Lender, any additional requirements of the Rating Agencies). 
 “Land” shall have the
meaning set forth in the Security Instrument and includes the Ground Lease Property. 
 “Late Payment Charge” shall
have the meaning set forth in Section 2.2.3. 
 “Lease” shall mean any lease (other than the Prime Lease
and the Operating Lease), sublease or subsublease, letting, license, concession, or other agreement (whether written or oral and whether now or hereafter in effect) (excluding club membership programs now or hereafter in effect entitling Persons to
preferential access to the Property) pursuant to which any Person is granted by the Borrower or Operating Lessee a possessory interest in, or right to use or occupy all or any portion of any space in the Property or any facilities at the Property
(other than typical short-term occupancy rights of hotel guests which are not the subject of a written agreement), and every modification, amendment or other agreement relating to such lease, sublease, subsublease, or other agreement entered into in
connection with such lease, sublease, subsublease, or other agreement and every guarantee of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other party thereto. 
 “Lease Modification” shall have the meaning set forth in Section 8.8.1. 
 “Legal Requirements” shall mean all present and future laws, statutes, codes, ordinances, orders, judgments, decrees,
injunctions, rules, regulations and requirements, and irrespective of the nature of the work to be done, of every Governmental Authority including, without limitation, Environmental Laws and all covenants, restrictions and conditions now or
hereafter of record which may be applicable to Borrower or to the Property and the Improvements and the Building Equipment thereon, or to the use, manner of use, occupancy, possession, operation, maintenance, alteration, repair or reconstruction of
the Property and the Improvements and the Building Equipment thereon including, without limitation, building and zoning codes and ordinances and laws relating to handicapped accessibility. 
 “Lender” shall have the meaning set forth in the first paragraph of this Agreement. 
 “Letter of Credit” shall mean an irrevocable, unconditional, transferable (without the imposition of any fee except any fees
which are expressly payable by the Borrower), clean sight draft letter of credit (either an evergreen letter of credit or one which does not expire until at least sixty (60) days after the Maturity Date (the “LC Expiration
Date”), in favor of Lender and entitling Lender to draw thereon in New York, New York, based solely on a statement executed by an officer or authorized signatory of Lender and issued by an Approved Bank. If at any time (a) the
institution issuing any such Letter of Credit shall cease to be an 
  

 12 

 Approved Bank or (b) the Letter of Credit is due to expire prior to the LC Expiration Date, Lender shall have the
right immediately to draw down the same in full and hold the proceeds thereof in accordance with the provisions of this Agreement, unless Borrower shall deliver a replacement Letter of Credit from an Approved Bank within (i) as to
(a) above, twenty (20) days after Lender delivers written notice to Borrower that the institution issuing the Letter of Credit has ceased to be an Approved Bank or (ii) as to (b) above, at least twenty (20) days prior to the
expiration date of said Letter of Credit. 
 “Liabilities” shall have the meaning set forth in
Section 14.4.2(b). 
 “LIBOR” shall have the meaning set forth in the Note. 
 “LIBOR Cap Strike Rate” shall mean 7.50%. 
 “LIBOR Margin (Mortgage)” shall mean “LIBOR Margin” as defined in the Note. 
 “LIBOR Rate” shall have the meaning set forth in the Note. 
 “License” shall have
the meaning set forth in Section 4.1.23. 
 “Lien” shall mean any mortgage, deed of trust, lien, pledge,
hypothecation, assignment, security interest, or any other encumbrance or charge on or affecting Borrower, the Property, any portion thereof or any interest therein, including, without limitation, any conditional sale or other title retention
agreement, any financing lease having substantially the same economic effect as any of the foregoing, the filing of any financing statement, and the filing of mechanic’s, materialmen’s and other similar liens and encumbrances. 

“Loan” shall mean the loan in the amount of $180,000,000 made by Lender to Borrower pursuant to this Agreement. 
 “Loan Documents” shall mean, collectively, this Agreement, the Note, the Security Instrument, the Assignment of Leases, the
Trademark Security Agreement, the Environmental Indemnity, the Assignment of Management Agreement, the Account Agreement, the Recourse Guaranty and all other documents executed and/or delivered by Borrower in connection with the Loan including any
certifications or representations delivered by or on behalf of Borrower, any Affiliate of Borrower, the Manager, or any Affiliate of the Manager (including, without limitation, any certificates in connection with any legal opinions delivered on the
date hereof), together with all of the Accommodation Security Documents executed by the Operating Lessee. 
 “Loan to Value
Ratio” shall mean the ratio, as of a particular date, in which the numerator is equal to the outstanding principal balance of the Loan and the denominator is equal to the appraised value of the Property as determined by Lender in its
reasonable discretion. 
 “Management Agreement” shall mean that certain Hotel Management Agreement dated
September 1, 2006 between Fairmont Hotels & Resorts (U.S.) Inc. and the Operating Lessee, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with the terms hereof.

  

 13 

 “Management Control” shall mean, with respect to any direct or indirect interest
in the Borrower or the Property (not including Manager under an Approved Management Agreement), the power and authority to make and implement or cause to be made and implemented all material decisions with respect to the operation, management,
financing and disposition of the specified interest. 
 “Management Fee” shall mean an amount equal to the monthly
property management fees payable to the Manager pursuant to the terms of the Management Agreement for management services, the Group Services Fee, incentive management fees and any other fees described in the Management Agreement, and any allocated
franchise fees. 
 “Manager” shall mean, as of the Closing Date, Fairmont Hotels & Resorts (U.S.) Inc., a
Delaware corporation, or any replacement “Manager” appointed in accordance with Section 5.2.14 hereof. 
 “Manager Accounts” shall mean the “Bank Accounts” (as defined in the Management Agreement) maintained by Manager in the name of Borrower or Operating Lessee with respect to the Property and in accordance
with the terms of the Management Agreement. 
 “Manager FF&E Reserve Account” shall mean the “Reserve
Fund” as defined in the Management Agreement. 
 “Manager Reimbursable Expenses” shall mean the
“Reimbursable Expenses” as defined in Section 5.4 of the Management Agreement. 
 “Material Adverse
Effect” shall mean any event or condition that has a material adverse effect on (i) the Property taken as a whole, (ii) the use, operation, or value of the Property, (iii) the business, profits, operations or financial
condition of the Borrower or (iv) the ability of Borrower to repay the principal and interest of the Loan as it becomes due or to satisfy any of Borrower’s obligations under the Loan Documents. 
 “Material Alteration” shall mean any Alteration (other than with respect to replacements of FF&E that are funded from
reserves for FF&E reserved for hereunder or under the Management Agreement by the Manager) to be performed by or on behalf of Borrower at the Property, the total cost of which (including, without limitation, construction costs and costs of
architects, engineers and other professionals), as reasonably estimated by an Independent Architect, exceeds the Threshold Amount. 
 “Material Casualty” shall mean a Casualty where the loss (i) is in an aggregate amount equal to or in excess of thirty percent (30%) of the outstanding Principal Amount of the Loan and the Mezzanine Loan or
(ii) has caused thirty percent (30%) or more of the hotel rooms or common areas (including banquet and conference facilities) in the Property to be unavailable for its applicable use. 
  

 14 

 “Material Condemnation” shall mean a Condemnation where the loss (i) is in
an aggregate amount equal to or in excess of thirty percent (30%) of the outstanding Principal Amount of the Loan and the Mezzanine Loan or (ii) has caused thirty percent (30%) or more of the hotel rooms or common areas (including
banquet and conference facilities) in the Property to be unavailable for its applicable use. 
 “Material Expansion”
shall mean any Expansion to be performed by or on behalf of the Borrower at the Property, the total cost of which, as reasonably estimated by an Independent Architect, exceeds the Threshold Amount. 
 “Material Lease” shall mean any Lease (a) demising a premises within the Property that is more than 10,000 net rentable
square feet or (b) that is for a term equal to or greater than sixty (60) months. 
 “Maturity Date” shall
have the meaning set forth in the Note. 
 “Maturity Date Payment” shall have the meaning set forth in the Note.

 “Maximum Legal Rate” shall mean the maximum non-usurious interest rate, if any, that at any time or from time to
time may be contracted for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents, under the laws of such state or states whose laws are held by any court of competent
jurisdiction to govern the interest rate provisions of the Loan. 
 “Mezzanine Account” shall mean account number
724043.1 at LaSalle Bank National Association. 
 “Mezzanine Borrower” shall mean SHR Scottsdale Mezz X-1, L.L.C., a
Delaware limited liability company and SHR Scottsdale Mezz Y-1, L.L.C., a Delaware limited company, jointly and severally. 
 “Mezzanine Lender” shall mean Citigroup Global Markets Realty Corp., a New York corporation, its successors and assigns in its capacity as the holder of the Mezzanine Loan. 
 “Mezzanine Lender Monthly Debt Service Notice Letter” shall mean the written notice required to be delivered by Mezzanine Lender
pursuant to Section 3.1.5(e) of the Mezzanine Loan Agreement to Lender at least five (5) Business Days prior to each Payment Date setting forth (i) the Mezzanine Loan Debt Service payable by Mezzanine Borrower on the first
Payment Date occurring after the date such notice is delivered and (ii) whether or not an Event of Default has then occurred and is continuing under the Mezzanine Loan Documents. 
 “Mezzanine Loan” shall mean the $90,000,000 mezzanine loan from Mezzanine Lender to the Mezzanine Borrower that is evidenced and
secured by the Mezzanine Loan Documents. 
 “Mezzanine Loan Agreement” shall mean that certain Mezzanine Loan and
Security Agreement, dated as of the date hereof, between Mezzanine Borrower, as borrower, and Mezzanine Lender, as lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  

 15 

 “Mezzanine Loan Debt Service” shall mean, with respect to any particular period
of time, scheduled interest payments under the Mezzanine Note. 
 “Mezzanine Loan Default Notice” shall mean a notice
from Mezzanine Lender (upon which Lender may conclusively rely without any inquiry into the validity thereof) that an “Event of Default” has occurred and is continuing under any of the Mezzanine Loan Documents. 
 “Mezzanine Loan Default Revocation Notice” shall have the meaning set forth in Section 3.1.5(f). 
 “Mezzanine Loan Documents” shall mean, collectively, the Mezzanine Loan Agreement, the Mezzanine Note, the Mezzanine Pledge and
any and all other agreements, instruments or documents executed by Mezzanine Borrower evidencing, securing or delivered in connection with the Mezzanine Loan and the transactions contemplated thereby, including, without limitation, officer’s
certificates. 
 “Mezzanine Note” shall mean that certain Mezzanine Note, dated the date hereof, made by Mezzanine
Borrower, as maker, in favor of Mezzanine Lender, as payee, in the principal amount of $90,000,000. 
 “Mezzanine
Pledge” shall mean that certain Pledge and Security Agreement, dated as of the date hereof, from Mezzanine Borrower to Mezzanine Lender. 
 “Monetary Default” shall mean a Default (i) that can be cured with the payment of money or (ii) arising pursuant to Section 17.1(a)(vi) or (vii). 
 “Monthly FF&E Reserve Amount” shall mean the amount required to be deposited to the FF&E Account under the Management
Agreement. 
 “Monthly Insurance Reserve Amount” shall have the meaning set forth in Section 16.2.

 “Monthly Tax Reserve Amount” shall have the meaning set forth in Section 16.1. 
 “Moody’s” shall mean Moody’s Investors Service, Inc. 
 “Net Operating Income” shall mean, for any specified period, the excess of Operating Income over Operating Expenses for the
trailing twelve (12) month period. 
 “New Lease” shall have the meaning set forth in Section 8.8.1.

 “Non-Consolidation Opinion” shall have the meaning provided in Section 2.5.5. 
  

 16 

 “Non-Disturbance Agreement” shall have the meaning set forth in
Section 8.8.9. 
 “Note” shall mean that certain Note (Mortgage Loan) in the principal amount of One
Hundred and Eighty Million Dollars ($180,000,000), made by Borrower in favor of Lender as of the date hereof, as the same may be amended, restated, replaced, substituted (including any components or subcomponents) or supplemented or otherwise
modified from time to time. 
 “Obligations” shall have meaning set forth in the recitals of the Security Instrument.

 “OFAC List” means the list of specially designated nationals and blocked persons subject to financial sanctions
that is maintained by the U.S. Treasury Department, Office Foreign Assets Control and accessible through the internet website www.treas.gov/ofac/t11sdn.pdf. 
 “Officer’s Certificate” shall mean a certificate executed by an authorized signatory of Borrower that is familiar with the financial condition of Borrower and the operation of the Property
or the particular matter which is the subject of such Officer’s Certificate. 
 “Operating Asset” shall have the
meaning set forth in the Security Instrument. 
 “Operating Expenses” shall mean, for any specified period, without
duplication, all expenses of Borrower or Operating Lessee (or by Manager for the account of Borrower or Operating Lessee) during such period in connection with the ownership or operation of the Property, including costs (including labor) of
providing services including rooms, food and beverage, telecommunications, garage and parking and other operating departments, as well as real estate and other business taxes, ground lease rental and other rental expenses, insurance premiums,
utilities costs, administrative and general costs, repairs and maintenance costs, Management Fees under the Management Agreement, other costs and expenses relating to the Property, required FF&E reserves, and legal expenses incurred in
connection with the operation of the Property, determined, in each case on an accrual basis, in accordance with GAAP. “Operating Expenses” shall not include (i) depreciation or amortization or other noncash items, (ii) the
principal of and interest on the Note and the Mezzanine Note, (iii) income taxes or other taxes in the nature of income taxes, (iv) any expenses (including legal, accounting and other professional fees, expenses and disbursements) incurred
in connection with and allocable to the issuance of the Note, or (v) distributions to the shareholders of the Borrower. Expenses that are accrued as Operating Expenses during any period shall not be included in Operating Expenses when paid
during any subsequent period. 
 “Operating Lease” means that certain Sublease Agreement dated as of the date hereof
between SHR Scottsdale Operating Lessee I, L.L.C. and SHR Scottsdale Operating Lessee II, L.L.C. as co-sublessor and the Operating Lessee, as sublessee. 
 “Operating Lessee” means DTRS Scottsdale, L.L.C, a Delaware limited liability company, as sublessee under the Operating Lease. 
  

 17 

 “Operating Income” shall mean for any specified period, all income received by
Borrower or Operating Lessee (or by Manager for the account of Borrower or Operating Lessee) from any Person during such period in connection with the ownership or operation of the Property, determined on an accrual basis of accounting determined in
accordance with GAAP, including the following: 
 (i) all amounts payable to Borrower, Operating Lessee or to Manager for the account of
Borrower or Operating Lessee by any Person as Rent and/or Hotel Revenue; 
 (ii) all amounts payable to Borrower or Operating Lessee (or to
Manager for the account of Borrower or Operating Lessee) pursuant to any reciprocal easement and/or operating agreements, covenants, conditions and restrictions, condominium documents and similar agreements affecting the Property and binding upon
and/or benefiting Borrower and other third parties, but specifically excluding the Management Agreement; 
 (iii) condemnation awards to the
extent that such awards are compensation for lost rent allocable to such specified period; 
 (iv) business interruption and loss of
“rental value” insurance proceeds to the extent such proceeds are allocable to such specified period; and 
 (v) all investment
income with respect to the Collateral Accounts. 
 Notwithstanding the foregoing clauses (i) through (v), Operating Income shall not include
(A) any Proceeds (other than of the types described in clauses (iii) and (iv) above), (B) any proceeds resulting from the sale, exchange, transfer, financing or refinancing of all or any part of the Property (other than of the
types described in clause (i) and (iii) above), (C) any repayments received from Tenants of principal loaned or advanced to Tenants by Borrower, (D) any type of income that would otherwise be considered Operating Income pursuant
to the provisions above but is paid directly by any Tenant to a Person other than Borrower or Manager or its agent and (E) any fees or other amounts payable by a Tenant or another Person to Borrower that are reimbursable to Tenant or such other
Person. 
 “Opinion of Counsel” shall mean opinions of counsel of law firm(s) licensed to practice in Arizona and New
York selected by Borrower and reasonably acceptable to Lender. 
 “Other Charges” shall mean maintenance charges,
impositions other than Impositions, and any other charges, including, without limitation, vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Property, now or hereafter levied or assessed or imposed against
the Property or any part thereof by any Governmental Authority, other than those required to be paid by a Tenant pursuant to its respective Lease. 
 “Other Taxes” shall have the meaning set forth in Section 2.4.3. 
 “Payment
Date” shall have the meaning set forth in the Note. 
 “Permitted Borrower Transferee” shall mean any
entity (i) that is experienced in owning and operating (including acting as asset manager) properties similar to the Property, 
  

 18 

 (ii) (a) with a net worth together with its Close Affiliates, as of a date no more than six (6) months prior to
the date of the transfer of at least $1 Billion (exclusive of the Property) and (b) who, immediately prior to such transfer, controls, together with its Close Affiliates real estate equity assets of at least $1 Billion, (iii) which,
together with its Close Affiliates owns or has under management or acts as the exclusive fund manager or investment advisor, at the time of the transfer, not fewer than 20 first class full service resort hotels or business hotel properties
(excluding the Property) containing not fewer than 5,000 hotel rooms in the aggregate and (iv) that is not a Disqualified Transferee.. 
 “Permitted Borrower Transferee Alternative” shall mean any entity (i) that is experienced in owning and operating (including acting as asset manager of) properties similar to the Property, (ii) that either
(a) has a net worth together with its Close Affiliates, as of a date no more than six (6) months prior to the date of the transfer of at least $300 Million (exclusive of the Property) and, immediately prior to such transfer, controls,
together with its Close Affiliates real estate equity assets of at least $1 Billion or (b) together with its Close Affiliates owns or has under management or acts as the exclusive fund manager or investment advisor, at the time of the transfer,
not fewer than 6 luxury resort hotels (excluding the Property) containing not fewer than 3,000 hotel rooms in the aggregate and (iii) that is not a Disqualified Transferee. 
 “Permitted Debt” shall mean collectively, (a) the Note and the other obligations, indebtedness and liabilities specifically
provided for in any Loan Document and secured by this Agreement, the Security Instrument and the other Loan Documents, (b) the Mezzanine Note and the other obligations, indebtedness and liabilities specifically permitted under the Mezzanine
Loan Documents (solely as obligations of the Mezzanine Borrower), (c) trade payables and other liabilities incurred in the ordinary course of Borrower’s business and payable by or on behalf of Borrower in respect of the operation of the
Property, not secured by Liens on the Property (other than liens being properly contested in accordance with the provisions of this Agreement or the Security Instrument), such payables and liabilities (which shall not include taxes, accrued payroll
and benefits, customer, membership and security deposits and deferred income), not to exceed at any one time outstanding two percent (2%) of the Principal Amount of the Loan and the Mezzanine Loan, provided that (but subject to the remaining
terms of this definition) each such amount shall be paid within sixty (60) days following the date on which each such amount is incurred, provided, that such two percent (2.0%) limitation shall not include normal and customary retainages
related to Alterations that are reserved for by Borrower, (d) purchase money indebtedness and capital lease obligations incurred in the ordinary course of Borrower’s business, having scheduled annual debt service not to exceed $600,000,
(e) contingent obligations to repay customer, membership and security deposits held in the ordinary course of Borrower’s business, (f) obligations incurred in the ordinary course of Borrower’s business for the financing of any
applicable portfolio insurance premiums, (g) any Management Fees not yet due and payable under the Management Agreement, (h) taxes or other charges not yet due and payable or delinquent or which are being diligently contested in good faith
in accordance with Section 5.1(b)(ii) hereof, (i) indebtedness relating to Liens in respect of property or assets imposed by law which were incurred in the ordinary course of business, such as carriers’, warehousemen’s,
landlord’s, mechanic’s, materialmen’s, repairmen’s and other similar Liens arising in the ordinary course of business, and Liens for workers’ compensation, unemployment insurance and similar programs, in each case arising in
the ordinary course of business which are either not yet due and payable or being diligently contested in good faith in accordance with the 
  

 19 

 requirements of the Loan Documents, (j) the Revolver Loan and (k) such other unsecured indebtedness approved by
Lender in its sole discretion and with respect to which Borrower has received a Rating Confirmation. Nothing contained herein shall be deemed to require Borrower to pay any amount, so long as Borrower is in good faith, and by proper legal
proceedings, diligently contesting the validity, amount or application thereof, provided that in each case, at the time of the commencement of any such action or proceeding, and during the pendency of such action or proceeding (i) no Event of
Default shall exist and be continuing hereunder, (ii) adequate reserves with respect thereto are maintained on the books of Borrower in accordance with GAAP, and (iii) such contest operates to suspend collection or enforcement, as the case
may be, of the contested amount and such contest is maintained and prosecuted continuously and with diligence. Notwithstanding anything set forth herein, in no event shall Borrower be permitted under this provision to enter into a note (other than
the Note and the other Loan Documents) or other instrument for borrowed money other than permitted purchase money indebtedness as described in this definition. 
 “Permitted Encumbrances” shall mean collectively, (a) the Liens and security interests created or permitted by the Loan Documents, (b) all Liens, encumbrances and other matters
disclosed in the Title Policy, (c) Liens, if any, for Impositions imposed by any Governmental Authority not yet due or delinquent (other than any such Lien imposed pursuant to Section 401(a)(29) of the Code or by ERISA), (d) Liens on
personal property items that are the subject of clause (d) of the definition of Permitted Debt, (e) with respect to the owner of Borrower, the Liens and Security Interests in its ownership interest in the Borrower covered by and otherwise
permitted under the Mezzanine Loan Documents, and (f) the Prime Lease. 
 “Permitted Fund Manager” means any
Person that on the date of determination is (i) a nationally-recognized manager of investment funds investing in debt or equity interests relating to commercial real estate, (ii) investing through a fund with committed capital of at least
$250,000,000 and (iii) not subject to a bankruptcy proceeding. 
 “Permitted Investments” shall have the meaning
set forth in the Account Agreement. 
 “Permitted Mezzanine Transfer” shall mean (a) a pledge of direct or
indirect equity interests in Borrower to secure the Mezzanine Loan and (b) any foreclosure (or transfer in lieu thereof) in respect of the Mezzanine Loan, provided that the secured party or the acquirer at foreclosure (or transfer in
lieu thereof), as applicable, (i) shall be a Qualified Transferee or (ii) shall have received a Rating Confirmation prior to such foreclosure (or such transfer in lieu of foreclosure), subject in the case of each of clauses (i) and
(ii) to the requirement that the Borrower deliver to Lender and the Rating Agencies a nonconsolidation opinion satisfactory to the Rating Agencies with respect to any Person having more than a 49% direct or indirect equity interest (either
individually or together with any interests held by an affiliate of such Person) in Borrower. 
 “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. 
  

 20 

 “Physical Conditions Report” shall mean, with respect to the Property,
collectively, the (i) seismic report and (ii) structural engineering report (prepared by an Independent Architect), both of which have been (a) addressed to Lender (b) prepared based on a scope of work determined by Lender in
Lender’s reasonable discretion, and (c) in form and content acceptable to Lender in Lender’s reasonable discretion, together with any amendments or supplements thereto. 
 “Plan” shall have the meaning set forth in Section 4.1.10. 
 “Pre-approved Manager” shall mean any entity set forth on Schedule IV. 
 “Pre-approved Transferee” shall mean any of the entities set forth on Schedule III hereof, or any Close Affiliates
thereof, provided any of the foregoing entities or their Close Affiliates shall only be a “Pre-approved Transferee” if (i) such entity continues to be Controlled by substantially the same Persons Controlling such entity as of the
Closing Date or if such Pre-approved Transferee is a publicly traded company, such Pre-approved Transferee continues to be publicly traded on an established securities market, (ii) there has been no material adverse change in the financial
condition or results of operations of such entity since the Closing Date, (iii) such entity is not a Disqualified Transferee and (iv) if such entity as of the Closing Date is rated (a) “Investment Grade”, there has been no
deterioration in such entity’s long-term or short-term credit rating (if any) since the Closing Date below “BBB-” or (b) below “Investment Grade”, there has been no deterioration in such entity’s long-term or
short-term credit rating (if any) since the Closing Date. 
 “Prepayment Fee” shall have the meaning set forth in the
Note. 
 “Prime Lease” means that certain Lease Agreement dated as of the date hereof between the Borrower, as
lessor, and SHR Scottsdale Operating Lessee I, L.L.C. and SHR Scottsdale Operating Lessee II, L.L.C., as co-lessees. 
 “Prime
Lessee” shall mean SHR Scottsdale Operating Lessee I, L.L.C. and SHR Scottsdale Operating Lessee II, L.L.C., each a Delaware limited liability company. 
 “Principal Amount” shall have the meaning set forth in the Note. 
 “Proceeds” shall mean amounts, awards or payments payable to Borrower (including, without limitation, amounts payable under any title insurance policies covering Borrower’s ownership interest in the Property) or
Lender with respect to any insurance required to be maintained hereunder (after the deduction therefrom and payment to Borrower and Lender, respectively, of any and all reasonable expenses incurred by Borrower and Lender in the recovery thereof,
including all attorneys’ fees and disbursements, the fees of insurance experts and adjusters and the costs incurred in any litigation or arbitration with respect to any claim under such insurance policies). 
 “Prohibited Person” means any Person identified on the OFAC List or any other Person with whom a U.S. Person may not conduct
business or transactions by prohibition of Federal law or Executive Order of the President of the United States of America. 
  

 21 

 “Property” shall have the meaning set forth in the Security Instrument, and
includes the Ground Lease Property. 
 “Provided Information” shall have the meaning set forth in
Section 14.1.1. 
 “Purchase Agreement” shall mean that certain Purchase and Sale Agreement in respect of
the Property, dated June 30, 2006, between Scottsdale Princess Partnership, as seller and SHR Scottsdale, L.L.C., as purchaser, as the same have been assigned, amended or supplemented as of the date hereof. 
 “Qualified Intermediary” shall mean Nationwide Exchange Services Corporation, a California corporation, in its capacity as an
“Exchange Accommodation Titleholder,” as defined in Revenue Procedure 2000-37, 2000-2 C.B. 308 promulgated under the Internal Revenue Code of 1986, as amended, and, in such capacity, the owner of one hundred percent (100%) of the
indirect ownership interests in Borrower as of the Closing Date, or any other entity engaged in a similar line of business and reasonably acceptable to Lender. 
 “Qualified Transferee” shall mean one or more of the following: 
 (i) 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 that satisfies the
Eligibility Requirements; 
 (ii) 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, that satisfies the Eligibility Requirements;

 (iii) an institution substantially similar to any of the foregoing entities described in clauses (i) or (ii) that satisfies the
Eligibility Requirements; 
 (iv) any entity Controlled (and only so long as such entity continues at all times to be Controlled) by any of
the entities described in clause (i), (ii) or (iii) above; 
 (v) an investment fund, limited liability company, limited
partnership or general partnership where a Permitted Fund Manager or an entity that is otherwise a Qualified Transferee under clause (i), (ii), (iii) or (iv) of this definition acts as the general partner, managing member or fund manager
and at least 50% of the equity interests in such investment vehicle are owned, directly or indirectly, by one or more entities that are otherwise Qualified Transferees under clause (i), (ii), (iii) or (iv) of this definition. 

“Rate Cap Collateral” shall have the meaning set forth in Section 9.2. 
 “Rating Agencies” shall mean (a) prior to a Securitization, each of S&P, Moody’s and Fitch and any other
nationally-recognized statistical rating agency which has been approved by Lender and (b) after a Securitization has occurred, each such Rating Agency which has rated the Securities in the Securitization. 
  

 22 

 “Rating Agency Confirmation” shall mean, collectively, a written affirmation from
each of the Rating Agencies that the credit rating of the Securities given 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, which affirmation may be granted or withheld in such Rating Agency’s sole and absolute discretion. In the event that, at any given time, no such Securities shall have been issued and are
then outstanding, then the term Rating Agency Confirmation shall be deemed instead to require the written approval of Lender based on its good faith determination of whether the Rating Agencies would issue a Rating Agency Confirmation if any such
Securities were outstanding. 
 “Real Property” shall mean, collectively, the Land, the Improvements and the
Appurtenances (as defined in the Security Instrument). 
 “Recourse Guaranty” shall mean that certain Guaranty of
Recourse Obligations of Borrower, dated as of the date hereof, by Guarantor in favor of Lender, as the same may be amended, supplemented, restated or otherwise modified from time to time. 
 “Register” shall have the meaning set forth in Section 15.4. 
 “Regulatory Change” shall mean any change after the date of this Agreement in federal, state or foreign laws or regulations or
the adoption or the making, after such date, of any interpretations, directives or requests applying to Lender, or any Person Controlling Lender or to a class of banks or companies Controlling banks of or under any federal, state or foreign laws or
regulations (whether or not having the force of law) by any court or Governmental Authority or monetary authority charged with the interpretation or administration thereof. 
 “Release Prices” shall mean the fixed price figures for the relevant Release Parcels identified more fully in Schedule
V. 
 “Release Parcels” shall mean the parcels of Property identified more fully in Schedule V.

 “Relevant Portions” shall have the meaning set forth in Section 14.4.2(a). 
 “Remaining Property” shall have the meaning set forth in Section 2.3.4(a). 
 “Rents” shall mean all rents, rent equivalents, moneys payable as damages or in lieu of rent or rent equivalents, royalties
(including, without limitation, all oil and gas or other mineral royalties and bonuses), income, receivables, receipts, revenues, deposits (including, without limitation, security, utility and other deposits), accounts, cash, issues, profits,
charges for services rendered, and other consideration of whatever form or nature received by or paid to or for the account of or benefit of Borrower and/or Operating Lessee from any and all sources arising from or attributable to the Property and
Proceeds, if any, from business interruption or other loss of income insurance. 
 “Restoration” shall have the
meaning provided in Section 6.2.2. 
  

 23 

 “Replacement Interest Rate Cap Agreement” shall mean, in connection with a
replacement of an Interest Rate Cap Agreement following a Downgrade of the Counterparty thereto, an interest rate cap agreement (together with the confirmation and schedules relating thereto) from an Acceptable Counterparty and satisfying the
requirements set forth on Exhibit I hereto; provided that to the extent any such interest rate cap agreement does not meet the foregoing requirements a “Replacement Interest Cap Agreement” shall be such interest rate cap
agreement approved by each of the Rating Agencies, such approval to be evidenced by the receipt of a Rating Agency Confirmation. 
 “Revolver Loan” shall mean that certain revolving credit facility from Deutsche Bank Trust Company Americas to Strategic Hotel Funding, L.L.C., evidenced by that certain Revolving Credit Agreement, dated as of
November 5, 2006, hereof, between Deutsche Bank Trust Company Americas, Wachovia Bank National Association, as lender, various financial institutions, as lenders specified therein and Strategic Hotel Funding, L.L.C., as the same has heretofore
and may hereafter be amended, restated, supplemented or otherwise modified or replaced, from time to time. 
 “S&P” shall mean Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. 
 “Securities” shall have the meaning set forth in Section 14.1. 
 “Securities Act” shall have the meaning set forth in Section 14.4.1. 
 “Securitization” shall have the meaning set forth in Section 14.1. 
 “Security
Instrument” shall mean that certain first priority Fee and Leasehold Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents, Hotel Revenue and Security Deposits, dated the date hereof,
executed and delivered by Borrower and certain of its affiliates to Lender and encumbering the Property, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
 “Servicer” shall mean such Person designated in writing with an address for such Person by Lender, in its sole discretion, to act
as Lender’s agent hereunder with such powers as are specifically delegated to the Servicer by Lender, whether pursuant to the terms of this Agreement, the Account Agreement or otherwise, together with such other powers as are reasonably
incidental thereto. 
 “Single Purpose Entity” shall mean a Person, other than an individual, which (i) is
formed or organized solely for the purpose of owning, leasing, managing, holding, developing, using, operating and financing the Property, (ii) does not engage in any business unrelated to the Property and the ownership, development, use,
operation and financing thereof, (iii) does not have any assets other than those related to its interest in the Property or the operation, management and financing thereof or any indebtedness other than the Permitted Debt, (iv) maintains
its own separate books and records and its own accounts, in each case which are separate and apart from the books and records and accounts of any other Person, (v) holds itself out as being a Person, separate and apart from any other Person,
(vi) does not and will not 
  

 24 

 commingle its funds or assets with those of any other Person except as provided in this Agreement with regards to the
Co-Borrowers, Co-Mezzanine Borrowers (as defined under the Mezzanine Loan Agreement) or the Prime Lessees under the Prime Lease, (vii) conducts its own business in its own name; (viii) maintains separate financial statements; provided,
however, that any consolidated financial statements contain a note indicating that it and its Affiliates are separate legal entities and maintain records, books of account, and accounts separate and apart from any other Person, (ix) pays its
own liabilities out of its own funds, (x) observes all partnership, corporate or limited liability company formalities, as applicable, (xi) pays the salaries of its own employees, if any, and maintains a sufficient number of employees, if
any, in light of its contemplated business operations, (xii) does not pledge its assets or guarantee or otherwise obligate itself with respect to the debts of any other Person or hold out itself or its credit as being available to satisfy the
obligations of any other Person, (xiii) does not acquire obligations or securities of its partners, members or shareholders, (xiv) allocates fairly and reasonably shared expenses, including, without limitation, any overhead for shared
office space, if any, (xv) uses separate stationary, invoices, and checks bearing its own name, (xvi) maintains an arms-length relationship with its Affiliates, (xvii) except as provided in this Agreement with regards to the
Co-Borrowers, Co-Mezzanine Borrowers or the Prime Lessees under the Prime Lease, does not pledge its assets for the benefit of any other Person (other than as permitted under clauses (a) and (d) of the definition of Permitted Encumbrances)
or make any cash loans or advances to any other Person, (xviii) uses commercially reasonable efforts to correct any known misunderstanding regarding its separate identity and (xix) maintains adequate capital in light of its contemplated
business operations. In addition, if such Person is a partnership, (1) all general partners of such Person shall be Single Purpose Entities; and (2) if such Person has more than one general partner, then the organizational documents shall
provide that such Person shall continue (and not dissolve) for so long as a solvent general partner exists. In addition, if such Person is a corporation, then, at all times: (a) such Person shall have at least two (2) Independent Directors
and (b) the board of directors of such Person may not take any action requiring the unanimous affirmative vote of 100% of the members of the board of directors unless all of the directors, including the Independent Directors, shall have
participated in such vote. In addition, if such Person is a limited liability company, (a) such Person shall have at least two (2) Independent Managers or Independent Members, (b) if such Person is managed by a board of managers, the
board of managers of such Person may not take any action requiring the unanimous affirmative vote of 100% of the members of the board of managers unless all of the managers, including the Independent Managers, shall have participated in such vote,
(c) if such Person is not managed by a board of managers, the members of such Person may not take any action requiring the affirmative vote of 100% of the members of such Person unless all of the members, including the Independent Members,
shall have participated in such vote, (d) each managing member shall be a Single Purpose Entity and (e) its articles of organization, certificate of formation and/or operating agreement, as applicable, shall provide that until all of the
Indebtedness and Obligations are paid in full such entity will not dissolve. In addition, the organizational documents of such Person shall provide that such Person (1) without the unanimous consent of all of the partners, directors or members,
as applicable, shall not with respect to itself or to any other Person in which it has a direct or indirect legal or beneficial interest (a) seek or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator,
custodian or other similar official for the benefit of the creditors of such Person or all or any portion of such 
  

 25 

 Person’s properties, or (b) take any action that might cause such Person to become insolvent, petition or
otherwise institute insolvency proceedings or otherwise seek any relief under any laws relating to the relief from debts or the protection of debtors generally, (2) will maintain its books, records, resolutions and agreements as official
records, (3) will hold its assets in its own name, (4) will maintain its financial statements, accounting records and other organizational documents, books and records separate and apart from any other Person, (5) will not identify
its partners, members or shareholders, or any Affiliates of any of them as a division or part of it, (6) will maintain an arms-length relationship with its Affiliates, (7) except for capital contributions or capital distributions will not
enter into or be a party to any transaction with its partners, members, shareholders, or its Affiliates except in the ordinary course of business and on terms which are intrinsically fair and are no less favorable to it than would be obtained in a
comparable arms-length transaction with a third party; (8) will not buy or hold evidence of indebtedness issued by any other Person (other than cash or investment-grade securities); and (9) except as permitted by the Loan Documents, will
not form, acquire or hold any subsidiary (whether corporation, partnership, limited liability company or other) or own any equity interest in any other entity other than the Property. 
 For purposes of the foregoing definition, it is agreed and understood that entities which are tenants-in-common such as the Co-Borrowers, the entities
which comprise the Operating Lessee and Prime Lessee and the Co-Mezzanine Borrowers are Single Purpose Entities notwithstanding the relationship and affiliated transactions among and between some or all of such entities as contemplated by the Loan
Documents. 
 “Special Taxes” shall mean any and all present or future taxes, levies, imposts, deductions, charges or
withholdings, or any liabilities with respect thereto, including those arising after the date hereof as result of the adoption of or any change in law, treaty, rule, regulation, guideline or determination of a Governmental Authority or any change in
the interpretation or application thereof by a Governmental Authority but excluding, in the case of Lender, such taxes (including income taxes, franchise taxes and branch profit taxes) as are imposed on or measured by Lender’s net income by the
United States of America or any Governmental Authority of the jurisdiction under the laws under which Lender is organized or maintains a lending office. 
 “State” shall mean the State in which the Property or any part thereof is located. 
 “Sub-Account(s)” shall have the meaning set forth in Section 3.1.1. 
 “Survey” shall mean a survey of the Property prepared by a surveyor licensed in the State and satisfactory to Lender and the company or companies issuing the Title Policy, and containing a certification of such
surveyor satisfactory to Lender. 
 “Tax Reserve Account” shall have the meaning set forth in
Section 3.1.1. 
 “Tax Reserve Amount” shall have the meaning set forth in Section 16.1.

  

 26 

 “Tenant” shall mean any Person leasing, subleasing or otherwise occupying any
portion of the Property or permitted to use any portion of the facilities at the Property, other than the Manager and its employees, agents and assigns. 
 “Threshold Amount” shall mean an amount equal to 10% of the Principal Amount of the Loan, being $18,000,000 as of the date of this Agreement. 
 “TIC Agreement” shall mean that certain Co-Tenancy Agreement, dated as of the date hereof, between the Co-Borrowers. 

“Title Company” shall mean, Lawyers Title Insurance Corporation. 
 “Title Policy” shall mean an ALTA mortgagee title insurance policy in a form acceptable to Lender (or, if the Property is in a
State which does not permit the issuance of such ALTA policy, such form as shall be permitted in such State and acceptable to Lender) issued by the Title Company with respect to the Property and insuring the lien of the Security Instrument.

 “Total Insurable Value” shall mean $189,000,000, increased each year commencing on the first (1st) anniversary of the Closing Date by the percentage increase in the Consumer Price Index for All Urban Consumers that is
published by the Bureau of Labor Statistics for the city in which the Property is located. 
 “Trademark Security
Agreement” shall have the meaning provided in Section 2.5.14. 
 “Transfer” shall mean to,
directly or indirectly, sell, assign, convey, mortgage, transfer, pledge, hypothecate, encumber, grant a security interest in, exchange or otherwise dispose of any beneficial interest or grant any option or warrant with respect to, or where used as
a noun, a direct or indirect sale, assignment, conveyance, transfer, pledge or other disposition of any beneficial interest by any means whatsoever whether voluntary, involuntary, by operation of law or otherwise. 
 “UCC” or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in the State.

 “Ultimate Equity Owner” shall mean Strategic Hotel Funding, L.L.C., a Delaware limited liability company.

 “Underwriter Group” shall have the meaning set forth in Section 14.4.2(b). 
 “Uniform System” shall mean the Uniform System of Accounts for Hotels, 9th Edition, International Association of Hospitality Accountants (1996), as from time to time amended. 
 “U.S. Government Obligations” shall mean any direct obligations of, or obligations guaranteed as to principal and interest by,
the United States Government or any agency or instrumentality thereof, provided that such obligations are backed by the full faith and credit of the United States. Any such obligation must be limited to instruments that have a 
  

 27 

 predetermined fixed dollar amount of principal due at maturity that cannot vary or change. If any such obligation is
rated by S&P, it shall not have an “r” highlighter affixed to its rating. Interest must be fixed or tied to a single interest rate index plus a single fixed spread (if any), and move proportionately with said index. U.S. Government
Obligations include, but are not limited to: U.S. Treasury direct or fully guaranteed obligations, Farmers Home Administration certificates of beneficial ownership, General Services Administration participation certificates, U.S. Maritime
Administration guaranteed Title XI financing, Small Business Administration guaranteed participation certificates or guaranteed pool certificates, U.S. Department of Housing and Urban Development local authority bonds, and Washington Metropolitan
Area Transit Authority guaranteed transit bonds. In no event shall any such obligation have a maturity in excess of 365 days. 
 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 accounting terms not specifically
defined herein shall be construed in accordance with GAAP as modified by the Uniform System. When used herein, the term “financial statements” shall include the notes and schedules thereto. Unless otherwise specified herein or therein, all
terms defined in this Agreement shall have the definitions given them in this Agreement when used in any other Loan Document or in any certificate or other document made or delivered pursuant thereto. 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. 
 II. GENERAL TERMS 
 Section 2.1 Loan; Disbursement to Borrower. 
 2.1.1 The
Loan. Subject to and upon the terms and conditions set forth herein, Lender hereby agrees to make and Borrower hereby agrees to accept the Loan on the Closing Date. 
 2.1.2 Disbursement to Borrower. Borrower may request and receive only one borrowing hereunder in respect of the Loan
and any amount borrowed and repaid hereunder in respect of the Loan may not be reborrowed. Borrower acknowledges and agrees that the full proceeds of the Loan have been disbursed by Lender to Borrower on the Closing Date. 
 2.1.3 The Note, Security Instrument and Loan Documents. The Loan shall be evidenced by the Note and secured by the
Security Instrument, the Assignment of Leases, this Agreement and the other Loan Documents. 
 2.1.4 Use of
Proceeds. Borrower shall use the proceeds of the Loan to acquire the Property and/or repay and discharge any existing mortgage loans secured by the Property, to make cash distributions to its partners, and as may be
otherwise set forth on the Loan closing statement executed by Borrower at closing. 
  

 28 

 Section 2.2 Interest; Loan Payments; Late Payment Charge.

 2.2.1 Payment of Principal and Interest. 
 (i) Except as set forth in Section 2.2.1(ii), interest shall accrue on the Principal Amount as set forth in the Note. 
 (ii) Upon the occurrence and during the continuance of an Event of Default and from and after the Maturity Date if the entire Principal Amount is not
repaid on the Maturity Date, interest on the outstanding principal balance of the Loan and, to the extent permitted by law, overdue interest and other amounts due in respect of the Loan shall accrue at the Default Rate calculated from the date such
payment was due without regard to any grace or cure periods contained herein. Interest at the Default Rate shall be computed from the occurrence of the Event of Default until the actual receipt and collection of the Indebtedness (or that portion
thereof that is then due). To the extent permitted by applicable law, interest at the Default Rate shall be added to the Indebtedness, shall itself accrue interest at the same rate as the Loan and shall be secured by the Security Instrument. This
paragraph shall not be construed as an agreement or privilege to extend the date of the payment of the Indebtedness, nor as a waiver of any other right or remedy accruing to Lender by reason of the occurrence of any Event of Default, and Lender
retains its rights under the Note to accelerate and to continue to demand payment of the Indebtedness upon the happening of any Event of Default. 
 2.2.2 Method and Place of Payment. 
 (a) On each Payment Date, Borrower shall pay or cause to be
paid to Lender interest accruing pursuant to the Note for the entire Interest Period during which said Payment Date shall occur. 
 (b) All
amounts advanced by Lender pursuant to the applicable provisions of the Loan Documents, other than the Principal Amount, together with any interest at the Default Rate or other charges as provided therein, shall be due and payable hereunder as
provided in the Loan Documents. In the event any such advance or charge is not so repaid by Borrower, Lender may, at its option and upon notice to Borrower, first apply any payments received under the Note to repay such advances, together with any
interest thereon, or other charges as provided in the Loan Documents, and the balance, if any, shall be applied in payment of any installment of interest or principal then due and payable. 
 (c) The Maturity Date Payment shall be due and payable in full on the Maturity Date. 
 2.2.3 Late Payment Charge. If any interest payment due under the Loan Documents is not paid by Borrower within five
(5) days after to the date on which it is due (or, if such fifth (5th) day is not a Business Day, then the
Business Day immediately preceding such day) on or prior to the date on which it is due, Borrower shall pay to Lender upon demand an amount equal to the lesser of three percent (3%) of such unpaid sum or the Maximum Legal 
  

 29 

 Rate (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 amount shall be secured by this Agreement, the Security Instrument and the other Loan Documents to the extent permitted by
applicable law. Borrower acknowledges and agrees that the five day grace period with respect to the applicability of the Late Payment Charge (i) shall only apply to Borrower’s first failure to make a monthly interest payment in any
calendar year and (ii) shall not constitute a payment grace period and shall in no way limit Lender’s rights under Article XVII. 
 2.2.4 Usury Savings. This Agreement and the Note are subject to the express condition that at no time shall Borrower be obligated or required to pay interest on the Principal Amount 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 Amount due under the Note at a rate in excess of the Maximum Legal Rate, then the LIBOR 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 under the Note. 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. 
 Section 2.3 Prepayments. 
 2.3.1 Prepayments. No
prepayments of the Indebtedness shall be permitted except as set forth in Section 4 of the Note. Borrower agrees and acknowledges after the closing of the Loan that prior to a material Event of Default (as determined by Lender in its sole and
absolute discretion) (x) in the case of prepayments of the Loan in connection with a Casualty or Condemnation, principal will be applied (to the extent not used for restoration pursuant to the terms hereof) to the Note, any substitute or
component notes (as applicable) and the Mezzanine Note sequentially starting with the most senior securitized tranche and (y) in the case of all prepayments of the Loan other than in accordance with the preceding clause (x), such prepayments
will be applied to the Note, any substitute or component notes (as applicable) and the Mezzanine Note pro-rata (on the basis of their respective principal balances) among the securitized and any non-securitized portions of the Loan (and pro-rata
within the securitized portions of the Loan). Notwithstanding the foregoing, upon the occurrence and during the continuance of a material Event of Default (as determined by Lender in its sole and absolute discretion), Borrower agrees and
acknowledges that any principal prepayments of the Loan will be applied to the Note, any substitute or component notes (as applicable) and the Mezzanine Note sequentially, starting with the most senior securitized tranche (it being acknowledged that
during the continuance of a material Event of Default all securitized portions of the Loan shall be paid in full prior to the payment of any non-securitized portions of the Loan or the Mezzanine Loan). 
  

 30 

 2.3.2 Prepayments after Event of Default. If, following an Event of
Default, Lender shall accelerate the Indebtedness and Borrower thereafter tenders payment of all or any part of the Indebtedness, or if all or any portion of the Indebtedness is recovered by Lender after such Event of Default, (a) such payment
may be made only on the next occurring Payment Date together with all unpaid interest thereon as calculated through the end of the Interest Period during which such Payment Date occurs (even if such period extends beyond such Payment Date and
calculated as if such payment had not been made on such Payment Date), and all other fees and sums payable hereunder or under the Loan Documents, including without limitation, interest that has accrued at the Default Rate and any Late Payment
Charges), (b) such payment shall be deemed a voluntary prepayment by Borrower, and (c) Borrower shall pay, in addition to the Indebtedness, an amount equal to the Prepayment Fee, if applicable. 
 2.3.3 Release of Property. Lender shall, at the reasonable expense of Borrower, upon payment in full of the Principal
Amount and interest 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 (i) this Agreement upon the Account Collateral and
the Rate Cap Collateral and (ii) the Security Instrument on the Property or assign it, in whole or in part, to a new lender. In such event, Borrower shall submit to Lender, on a date prior to the date of such release or assignment sufficient to
provide a reasonable period for review thereof, a release of lien or assignment of lien, as applicable, for such property for execution by Lender. Such release or assignment, as applicable, shall be in a form appropriate in each jurisdiction in
which the Property is located and satisfactory to Lender in its reasonable discretion. In addition, Borrower shall provide all other documentation Lender reasonably requires to be delivered by Borrower in connection with such release or assignment,
as applicable. 
 2.3.4 Release of Certain Release Parcels. 
 (a) General Release Conditions: Provided no Event of Default has occurred and is continuing, on one or more occasions Borrower may request
that Lender release one or more of the Release Parcels in accordance with the terms of this Section 2.3.4. Prior to releasing any Release Parcel from the Lien of the Security Instrument and consenting to corresponding modifications to the
provisions of the Operating Lease, the Management Agreement and the other Loan Documents pursuant to this Section 2.3.4, in addition to satisfying the additional conditions set forth below in Section 2.3.4(b), Lender shall release the
Release Parcel from the Lien of the Security Instrument and shall consent to corresponding modifications of the provisions of the Operating Lease, the Management Agreement and the other Loan Documents, provided Lender determines that Borrower shall
have satisfied the following conditions, as determined by Lender (such determination not to be unreasonably withheld, delayed or conditioned): (1) the released Release Parcel shall constitute a separate conveyable legal parcel in accordance
with the subdivision map act or the equivalent thereof in the jurisdiction of the applicable Property or other relevant granted government approvals in such jurisdiction; (2) to the extent any easements benefiting or burdening any such released
property are necessary or appropriate for the use or operation of such parcel or the remaining portions of the applicable Property (such remaining portion of an applicable Property, the “Remaining Property”), such easements
shall have been granted or reserved prior to or at the time of the release or reconveyance of such released parcel and shall have been approved by Lender, which 
  

 31 

 approval shall not be unreasonably withheld, delayed or conditioned; (3) the Remaining Property shall remain a legal
parcel (or parcels) in compliance in all material respects with all applicable Legal Requirements, zoning, subdivision, land use and other laws and regulations; (4) at the time of, but not prior to, any release or reconveyance, each released
Release Parcel shall be transferred to a person or entity that does not result in a breach of Borrower’s obligation to be a Single Purpose Entity; (5) Lender shall have received satisfactory evidence that any tax, bond or assessment that
constitutes a lien against the applicable Property has (i) prior to such release, been properly allocated between the released Release Parcel and the Remaining Property and (ii) after such release, will be properly assessed against the
released Release Parcel and the Remaining Property separately; (6) Lender shall have received such endorsements to the Title Policy (or substantially equivalent assurance) for the applicable Property as Lender may reasonably require confirming
continuing title insurance and that (A) the Security Instrument constitutes a first priority lien (subject to Permitted Encumbrances) on the Remaining Property after the release, (B) the Remaining Property constitutes a separate tax lot or
tax lots and (C) such release shall not result in the Remaining Property ceasing to comply in all material respects with all applicable Legal Requirements, zoning, land use and subdivision laws; (7) Borrower shall have executed and
delivered such documents (including amendments to the Loan Documents) as Lender may reasonably require to reflect such release; (8) Lender shall have determined (such determination not to be unreasonably withheld, delayed or conditioned) that
the proposed uses and structures to be developed on the released Release Parcel are materially consistent and/or complementary with the existing uses of the applicable Property and could not materially and adversely affect the Remaining Property;
(9) Borrower shall pay to Lender all reasonable out-of-pocket costs and expenses incurred by Lender (including, without limitation, attorneys fees and any applicable costs and expenses of the Rating Agencies) in connection with each such
release; (10) Borrower shall have provided Lender at least thirty (30) days prior written notice of such requested release; (11) if any portion of any Property is released to an Affiliate of Borrower, Borrower shall deliver to Lender
a new non-consolidation opinion in form acceptable to Lender; (12) Borrower shall submit to Lender not less than fifteen (15) days prior to the date of such proposed release (which must be on a Business Day), a release of Liens (and
related Loan Documents) for each applicable Release Parcel (for execution by Lender) in a form appropriate in the applicable state and otherwise satisfactory to Lender in its reasonable discretion and all other documentation Lender reasonably
requires to be delivered by Borrower in connection with such release (collectively, “Parcel Release Instruments”) (for execution by Lender) together with an Officer’s Certificate certifying that (i) the Parcel
Release Instruments are in compliance with all applicable Legal Requirements, (ii) the release to be effected will not violate the terms of this Agreement and (iii) the release to be effected will not impair or otherwise adversely affect
the Liens, security interests and other rights of Lender under the Loan Documents not being released (or as to the parties to the Loan Documents and Properties subject to the Loan Documents not being released), (13) the Mezzanine Loan shall
have been repaid in full and (14) after giving effect to such release, the Loan to Value Ratio for the Remaining Property is equal to or less than 55%. The Release Conditions described in this paragraph are hereinafter collectively referred to
as the General Release Conditions. 
 (b) Parcel Release Prices and Additional Parcel Release Conditions: Prior to releasing
any Release Parcel as described above, Borrower shall have satisfied the General Release Conditions and additionally, Borrower shall: (i) in the case of each Release Parcel (or portion thereof) that is transferred to an affiliate of Borrower,
cause such parcel (or portion 
  

 32 

 thereof) to be developed (if at all) with uses and structures materially consistent and/or complementary with the
existing uses at the Property; (ii) in the case of each Release Parcel (or portion thereof) that is transferred to any person or entity that is not an affiliate of Borrower, impose deed restrictions (which run with the land) or obtain such
transferee’s covenant (which, in either case, shall be enforceable by the owner of the applicable Remaining Property and its successors and assigns) to be developed as provided in clause (i) above; and (iii) pay to Lender the
applicable Release Price required to be paid pursuant to this Section with respect to the applicable Release Parcel that shall be applied as a prepayment of the Loan in accordance with Note, together with any Prepayment Fees required to be paid
pursuant to the Note in connection with such prepayment. Borrower shall further covenant and agree to enforce, consistent with Borrower’s reasonable judgment, such transferee’s deed restrictions and covenants. The foregoing covenants of
Borrower shall survive the release of any such Release Parcel. 
 Section 2.4 Regulatory Change;
Taxes. 
 2.4.1 Increased Costs. If, at any time prior to the first
Securitization of the Loan, as a result of any Regulatory Change or compliance of Lender therewith, the basis of taxation of payments to Lender of the principal of or interest on the Loan is changed or Lender or the company Controlling Lender shall
be subject to (i) any tax, duty, charge or withholding of any kind with respect to this Agreement (excluding federal taxation of the overall net income of Lender); or (ii) any reserve, special deposit or similar requirements relating to
any extensions of credit or other assets of, or any deposits with or other liabilities, of Lender or any company Controlling Lender is imposed, modified or deemed applicable; or (iii) any other condition affecting loans to borrowers subject to
LIBOR-based interest rates is imposed on Lender or any company Controlling Lender and Lender determines that, by reason thereof, the cost to Lender or any company Controlling Lender of making, maintaining or extending the Loan to Borrower is
increased, or any amount receivable by Lender or any company Controlling Lender hereunder in respect of any portion of the Loan to Borrower is reduced, in each case by an amount deemed by Lender in good faith to be material (such increases in cost
and reductions in amounts receivable being herein called “Increased Costs”), then Lender shall provide notice thereof to Borrower and Borrower agrees that it will pay to Lender upon Lender’s written request such
additional amount or amounts as will compensate Lender or any company Controlling Lender for such Increased Costs to the extent Lender determines that such Increased Costs are allocable to the Loan and provided that Lender is generally exercising
rights similar to those set forth in this Section 2.4.1 against other borrowers similarly situated to Borrower. Lender will notify Borrower of any event occurring after the date hereof which will entitle Lender to compensation pursuant
to this Section 2.4.1 as promptly as practicable after it obtains knowledge thereof and determines to request such compensation; provided, however, that, if Lender fails to deliver a notice within 90 days after the date on
which an officer of Lender responsible for overseeing this Agreement knows or has reason to know of its right to additional compensation under this Section 2.4.1, Lender shall only be entitled to additional compensation for any such
Increased Costs incurred from and after the date that is 90 days prior to the date Borrower received such notice. If Lender requests compensation under this Section 2.4.1, Borrower may, by notice to Lender, require that Lender furnish to
Borrower a statement setting forth the basis for requesting such compensation and the method for determining the amount thereof, and a description as to why Section 2.4.5 is not applicable. 
  

 33 

 2.4.2 Special Taxes. At all times prior to the first Securitization
of the Loan, Borrower shall make all payments hereunder free and clear of and without deduction for Special Taxes. If, at any time prior to the first Securitization of the Loan, Borrower shall be required by law to deduct any Special Taxes from or
in respect of any sum payable hereunder or under any other Loan Document to Lender, (i) the sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums
payable under this Section 2.4.2) Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) Borrower shall make such deductions, and (iii) Borrower shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law. 
 2.4.3 Other Taxes.
In addition, for all periods prior to the first Securitization of the Loan, Borrower agrees to pay any present or future stamp or documentary taxes or other excise or property taxes, charges, or similar levies which arise from any payment made
hereunder, or from the execution, delivery or registration of, or otherwise with respect to, this Agreement, the other Loan Documents, or the Loan (hereinafter referred to as “Other Taxes”). 
 2.4.4 Indemnity. Borrower shall indemnify Lender for all periods prior to the first Securitization of the Loan, for
the full amount of Special Taxes and Other Taxes (including any Special Taxes or Other Taxes imposed by any Governmental Authority on amounts payable under this Section 2.4.4) paid by Lender and any liability (including penalties,
interest, and expenses) arising therefrom or with respect thereto, whether or not such Special Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be made within thirty (30) days after the date Lender makes
written demand therefor. 
 2.4.5 Change of Office. To the extent that changing the jurisdiction of
Lender’s applicable office would have the effect of minimizing Special Taxes, Other Taxes or Increased Costs, Lender shall use reasonable efforts to make such a change, provided that same would not otherwise be disadvantageous to Lender.

 2.4.6 Survival. Without prejudice to the survival of any other agreement of Borrower hereunder, the
agreements and obligations of Borrower contained in this Section 2.4 shall survive the payment in full of principal and interest hereunder, and the termination of this Agreement. 
 Section 2.5 Conditions Precedent to Closing. The obligation of Lender to make the Loan hereunder is subject to
the fulfillment by, or on behalf of, Borrower or waiver by Lender of the following conditions precedent no later than the Closing Date; provided, however, that unless a condition precedent shall expressly survive the Closing Date
pursuant to a separate agreement, by funding the Loan, Lender shall be deemed to have waived any such conditions not theretofore fulfilled or satisfied: 
 2.5.1 Representations and Warranties; Compliance with Conditions. The representations and warranties of Borrower contained in this Agreement and the other Loan Documents shall be
true and correct in all material respects on and as of the Closing Date with the same effect as if made on and as of such date, and no Default or Event of Default shall have 
  

 34 

 occurred and be continuing; and Borrower shall be in compliance in all material respects with all terms and conditions
set forth in this Agreement and in each other Loan Document on its part to be observed or performed. 
 2.5.2 Delivery of Loan
Documents; Title Policy; Reports; Leases. 
 (a) Loan Documents. Lender shall have received an
original copy of this Agreement, the Note and all of the other Loan Documents, in each case, duly executed (and to the extent required, acknowledged) and delivered on behalf of Borrower and any other parties thereto. 
 (b) Security Instrument, Assignment of Leases. Lender shall have received evidence that original counterparts of the Security Instrument
and Assignment of Leases, in proper form for recordation, have been delivered to the Title Company for recording, so as effectively to create, in the reasonable judgment of Lender, upon such recording valid and enforceable first priority Liens upon
the Property, in favor of Lender (or such other trustee as may be required or desired under local law), subject only to the Permitted Encumbrances and such other Liens as are permitted pursuant to the Loan Documents. 
 (c) UCC Financing Statements. Lender shall have received evidence that the UCC financing statements relating to the Security Instrument and
this Agreement have been delivered to the Title Company for filing in the applicable jurisdictions. 
 (d) Title Insurance.
Lender shall have received a pro forma Title Policy or a Title Policy issued by the Title Company and dated as of the Closing Date, with reinsurance and direct access agreements acceptable to Lender. Such Title Policy shall (i) provide coverage
in the amount of the Loan, (ii) insure Lender that the Security Instrument creates a valid, first priority Lien on the Property, free and clear of all exceptions from coverage other than Permitted Encumbrances and standard exceptions and
exclusions from coverage (as modified by the terms of any endorsements), (iii) contain the endorsements and affirmative coverages set forth on Exhibit A (or such other endorsements and affirmative coverages approved by Lender) and
such additional endorsements and affirmative coverages as Lender may reasonably request, and (iv) name Lender as the insured. The Title Policy shall be assignable. Lender also shall have received evidence that all premiums in respect of such
Title Policy have been paid. 
 (e) Survey. Lender shall have received a current or rectified Survey for the Property,
containing the survey certification substantially in the form attached hereto as Exhibit B or such other form as approved by Lender. Such Survey shall reflect the same legal description contained in the Title Policy referred to in
clause (d) above. The surveyor’s seal shall be affixed to the Survey and the surveyor shall provide a certification for such Survey in form and substance acceptable to Lender. 
 (f) Insurance. Lender shall have received valid certificates of insurance for the policies of insurance required hereunder, satisfactory to
Lender in its reasonable discretion, and evidence of the payment of all insurance premiums currently due and payable for the existing policy period. 
  

 35 

 (g) Environmental Reports. Lender shall have received an Environmental Report in respect of
the Property satisfactory to Lender. 
 (h) Zoning. Lender shall have received an ALTA 3.1 zoning endorsement for the Title
Policy. 
 (i) Certificate of Occupancy. Lender shall have received a copy of the valid certificates of occupancy for the
Property or evidence acceptable to Lender that a certificate of occupancy is not required by applicable law. 
 (j)
Encumbrances. Borrower shall have taken or caused to be taken such actions in such a manner so that Lender has a valid and perfected first Lien as of the Closing Date on the Property, subject only to Permitted Encumbrances and such
other Liens as are permitted pursuant to the Loan Documents, and Lender shall have received satisfactory evidence thereof. 
 2.5.3
Related Documents. Each additional document not specifically referenced herein, but relating to the transactions contemplated herein, shall have been duly authorized, executed and delivered by all parties thereto and
Lender shall have received and approved certified copies thereof. 
 2.5.4 Delivery of Organizational
Documents. On or before the Closing Date, Borrower shall deliver, or cause to be delivered, to Lender copies certified by an Officer’s Certificate, of all organizational documentation related to Borrower, Operating
Lessee, Prime Lessee and Guarantor and certain Affiliates of the foregoing as have been requested by Lender and/or the formation, structure, existence, good standing and/or qualification to do business of Borrower, Operating Lessee, Prime Lessee and
Guarantor and such Affiliates, as Lender may request in its sole discretion, including, without limitation, good standing certificates, qualifications to do business in the appropriate jurisdictions, resolutions authorizing the entering into of the
Loan and incumbency certificates as may be requested by Lender. Each of the organizational documents of Borrower shall contain provisions having a substantive effect materially similar to that of the language set forth in Exhibit C or
such other language as approved by Lender. Lender hereby approves the organizational documents of Borrower delivered to Lender on the date hereof. 
 2.5.5 Opinions of Borrower’s Counsel. (a) Lender shall have received from Counterparty the Counterparty Opinion substantially in compliance with the requirements set forth in Exhibit F
or in such other form approved by the Lender. 
 2.5.6 Budgets. Borrower shall have delivered the Budget
for the current Fiscal Year, which Budget shall be certified by an Officer’s Certificate. 
 2.5.7 Completion of
Proceedings. All corporate and other proceedings taken or to be taken in connection with the transactions contemplated by this Agreement and other Loan Documents and all documents incidental thereto shall be satisfactory
in form and substance to Lender, and Lender shall have received all such counterpart originals or certified copies of such documents as Lender may reasonably request. 
  

 36 

 2.5.8 Payments. All payments, deposits or escrows, if any, required
to be made or established by Borrower under this Agreement, the Note and the other Loan Documents on or before the Closing Date shall have been paid. 
 2.5.9 Interest Rate Cap Agreement. Lender shall have received the original Interest Rate Cap Agreement which shall be in form and substance satisfactory to Lender and an original
counterpart of the Acknowledgment executed and delivered by the Counterparty. 
 2.5.10 Account
Agreement. Lender shall have received the original of the Account Agreement executed by each of Cash Management Bank, Operating Lessee, and Borrower. 
 2.5.11 Trademark Security Agreement. Lender shall have received the original of the Trademark Security Agreement in
the form of Exhibit Q executed by Borrower (the “Trademark Security Agreement”). 
 2.5.12
Intentionally Deleted. 
 2.5.13 Transaction Costs. Borrower shall have
paid or reimbursed Lender for all title insurance premiums, recording and filing fees, costs of Environmental Reports, Physical Conditions Reports, appraisals and other reports, the reasonable fees and costs of Lender’s counsel and all other
third party out-of-pocket expenses incurred in connection with the origination of the Loan. 
 2.5.14 Material Adverse
Effect. No event or condition shall have occurred since the date of Borrower’s most recent financial statements previously delivered to Lender which has or could reasonably be expected to have a Material Adverse
Effect. The Operating Income and Operating Expenses of the Property and all other features of the transaction shall be as represented to Lender without material adverse change. Neither Borrower nor any of its constituent Persons shall be the subject
of any bankruptcy, reorganization, or insolvency proceeding. 
 2.5.15 Tax Lot. Lender shall have
received evidence that the Property constitutes one (1) or more separate tax lots, which evidence shall be reasonably satisfactory in form and substance to Lender. 
 2.5.16 Physical Conditions Report. Lender shall have received a Physical Conditions Report (or re-certified Physical Conditions Report) with respect to the Property, which report
shall be satisfactory in form and substance to Lender. 
 2.5.17 Appraisal. Lender shall have received an
appraisal of the Property, which shall be satisfactory in form and substance to Lender. 
 2.5.18 Operating
Lease. Lender shall have received the originals of the Operating Lease, executed by Operating Lessee and Borrower and the Subordination of Operating Lease, executed by Operating Lessee. 
  

 37 

 2.5.19 Management Agreement. Lender shall have received a certified copy of the Management
Agreement which shall be satisfactory in form and substance to Lender. 
 2.5.20 Further Documents.
Lender or its counsel shall have received such other and further approvals, opinions, documents and information as Lender or its counsel may have reasonably requested including the Loan Documents in form and substance satisfactory to Lender and its
counsel. 
 III. CASH MANAGEMENT 
 Section 3.1 Cash Management. 
 3.1.1 Establishment of
Accounts. Borrower hereby confirms that, simultaneously with the execution of this Agreement, pursuant to the Account Agreement, Operating Lessee has established with Cash Management Bank, in the name of Borrower for the
benefit of Lender, as secured party, a collection amount (the “Collection Account”), which has been established as an interest-bearing deposit account, and a holding account (the “Holding Account”),
which has been established as a securities account. Both the Collection and the Holding Account and each sub-account of either such account and the funds deposited therein and the securities and other assets credited thereto shall serve as
additional security for the Loan. Pursuant to the Account Agreement, Borrower shall irrevocably instruct and authorize Cash Management Bank to disregard any and all orders for withdrawal from the Collection Account or the Holding Account made by, or
at the direction of, Borrower or Operating Lessee other than to transfer all amounts on deposit in the Collection Account on a daily basis to the Holding Account. Borrower agrees that, prior to the payment in full of the Indebtedness, the terms and
conditions of the Account Agreement shall not be amended or modified without the prior written consent of Lender (which consent Lender may grant or withhold in its sole discretion), and if a Securitization has occurred, the delivery by Borrower of a
Rating Agency Confirmation. In recognition of Lender’s security interest in the funds deposited into the Collection Account and the Holding Account, Borrower shall identify both the Collection Account and the Holding Account with the name of
Lender, as secured party. The Collection Account shall be named as follows: “Fairmont Scottsdale Princess f/b/o Citigroup Global Markets Realty Corp., as secured party Collection Account,” account number 724042.1. The Holding Account shall
be named as follows: “Fairmont Scottsdale Princess f/b/o Citigroup Global Markets Realty Corp., as secured party Holding Account,” account number 724047.1. Borrower confirms that it has established with Cash Management Bank the following
sub-accounts of the Holding Account (each, a “Sub-Account” and, collectively, the “Sub-Accounts” and together with the Holding Account and the Collection Account, the “Collateral
Accounts”), which (i) may be ledger or book entry sub-accounts and need not be actual sub-accounts, (ii) shall each be linked to the Holding Account, (iii) shall each be a “Securities Account” pursuant to
Article 8 of the UCC and (iv) shall each be an Eligible Account to which certain funds shall be allocated and from which disbursements shall be made pursuant to the terms of this Agreement: 
 (a) a sub-account for the retention of Account Collateral in respect of Impositions and Other Charges for the Property with the account number 724042.1
(the “Tax Reserve Account”); 
  

 38 

 (b) a sub-account for the retention of Account Collateral in respect of insurance premiums for the
Property with the account number 724042.1 (the “Insurance Reserve Account”); 
 (c) a sub-account for the retention
of Account Collateral in respect of FF&E with the account number 724042.1 (the “FF&E Reserve Account”); and 
 (d) a sub-account for the retention of Account Collateral in respect of current Debt Service on the Loan with the account number 724042.1 (the “Current Debt Service Reserve Account”). 
 3.1.2 Pledge of Account Collateral. To secure the full and punctual payment and performance of the Obligations,
Borrower and Operating Lessee hereby collaterally assigns, grants a security interest in and pledges to Lender, to the extent not prohibited by applicable law (and shall cause Operating Lessee to execute the Accommodation Security Documents with
respect thereto), a first priority continuing security interest in and to the following property of Borrower and/or Operating Lessee, as applicable, whether now owned or existing or hereafter acquired or arising and regardless of where located (all
of the same, collectively, the “Account Collateral”): 
 (a) the Collateral Accounts and Manager Accounts and all
cash, checks, drafts, securities entitlements, certificates, instruments and other property, including, without limitation, all deposits and/or wire transfers from time to time deposited or held in, credited to or made to Collateral Accounts;

 (b) any and all amounts invested in Permitted Investments; 
 (c) all interest, dividends, cash, instruments, securities entitlements and other property from time to time received, receivable or otherwise payable in respect of, or in exchange for, any or all of the foregoing or
purchased with funds from the Collateral Accounts; and 
 (d) to the extent not covered by clauses (a), (b) or (c) above, all
proceeds (as defined under the UCC) of any or all of the foregoing. 
 In addition to the rights and remedies herein set forth, Lender shall
have all of the rights and remedies with respect to the Account Collateral available to a secured party at law or in equity, including, without limitation, the rights of a secured party under the UCC, as if such rights and remedies were fully set
forth herein. 
 This Agreement shall constitute a security agreement for purposes of the Uniform Commercial Code and other applicable law.

 3.1.3 Maintenance of Collateral Accounts. (a) Borrower agrees that the Collection Account is and shall
be maintained (i) as a “deposit account” (as such term is defined in Section 9-102(a) of the UCC), (ii) in such a manner that Lender shall have control (within the meaning of Section 9-104(a) of the UCC) over the
Collection Account and (iii) such that neither the Borrower, Operating Lessee, nor Manager shall have any right of withdrawal 
  

 39 

 from the Deposit Accounts and, except as provided herein, no Account Collateral shall be released to the Borrower,
Operating Lessee, or Manager from the Collection Account. Without limiting the Borrower’s obligations under the immediately preceding sentence, Borrower shall only establish and maintain the Collection Account with a financial institution that
has executed an agreement substantially in the form of the Account Agreement or in such other form acceptable to Lender in its sole discretion. 
 (b) Borrower agrees that each of the Holding Account and the Sub-Accounts is and shall be maintained (i) as a “securities account” (as such term is defined in Section 8-501(a) of the UCC), (ii) in such a manner that
Lender shall have control (within the meaning of Section 8-106(d)(2) of the UCC) over the Holding Account and any Sub-Account, (iii) such that neither Borrower, Operating Lessee, nor Manager shall have any right of withdrawal from the
Holding Account or the Sub-Accounts and, except as provided herein, no Account Collateral shall be released to Borrower from the Holding Account or the Sub-Accounts, (iv) in such a manner that the Cash Management Bank shall agree to treat all
property credited to the Holding Account or the Sub-Accounts as “financial assets” and (v) such that all securities or other property underlying any financial assets credited to the Accounts shall be registered in the name of Cash
Management Bank, indorsed to Cash Management Bank or in blank or credited to another securities account maintained in the name of Cash Management Bank and in no case will any financial asset credited to any of the Collateral Accounts be registered
in the name of Borrower, payable to the order of Borrower or specially indorsed to Borrower except to the extent the foregoing have been specially indorsed to Cash Management Bank or in blank. Without limiting Borrower’s obligations under the
immediately preceding sentence, Borrower shall only establish and maintain the Holding Account with a financial institution that has executed an agreement substantially in the form of the Account Agreement or in such other form acceptable to Lender
in its sole discretion. 
 (c) The Collateral Accounts shall be Eligible Accounts. The Collateral Accounts shall be subject to such
applicable laws, and such applicable regulations of the Board of Governors of the Federal Reserve System and of any other banking or governmental authority, as may now or hereafter be in effect. Income and interest accruing on the Collateral
Accounts or any investments held in such accounts shall be periodically added to the principal amount of such account and shall be held, disbursed and applied in accordance with the provisions of this Agreement and the Account Agreement. Borrower
shall be the beneficial owner of the Collateral Accounts for federal income tax purposes and shall report all income on the Collateral Accounts. 
 3.1.4 Deposits into Sub-Accounts. On the date hereof, Borrower has deposited the following amounts into the Sub-Accounts: 
 (i) $0.00 into the Tax Reserve Account; 
 (ii) $0.00 into the Insurance Reserve Account; 
 (iii) $0.00 into the Current Debt Service Reserve Account; and 
 (iv) $0.00 into the FF&E Reserve Account. 
  

 40 

 3.1.5 Monthly Funding of Sub-Accounts. (a) Borrower hereby
irrevocably authorizes Lender to transfer (and, pursuant to the Account Agreement shall irrevocably authorize Cash Management Bank to execute any corresponding instructions of Lender), and Lender shall transfer (or cause Cash Management Bank to
transfer pursuant to disbursement instructions from Lender), from the Holding Account by 11:00 a.m. New York time on each Business Day, or as soon thereafter as sufficient funds are in the Holding Account to make the applicable transfers, funds in
the following amounts and in the following order of priority: 
 (i) during the continuance of an Event of Default and at any such time that
Manager does not reserve for or otherwise set aside and pay Impositions and Other Charges directly, funds in an amount equal to the Monthly Tax Reserve Amount and any other amounts required pursuant to Section 16.1 for the month in which
the Payment Date immediately following the date of the transfer from the Holding Account occurs and transfer the same to the Tax Reserve Account; 
 (ii) during the continuance of an Event of Default and at any time when the insurance required to be maintained pursuant to this Agreement is provided under a blanket policy in accordance with Article VI hereof and the premiums in
respect of such blanket policy are not paid or caused to be paid before such premiums become due and payable or at any time that Manager does not pay, reserve for or otherwise set aside and pay, premiums with respect to the Insurance Requirements,
funds in an amount equal to the Monthly Insurance Reserve Amount for the month in which the Payment Date immediately following the date of the transfer from the Holding Account occurs and transfer the same to the Insurance Reserve Account, or
following an Event of Default or an Insurance Reserve Trigger, funds sufficient (calculated on a monthly basis from the Insurance Reserve Trigger until the month in which the premium is due) to permit Lender to pay insurance premiums for the
insurance required to be maintained pursuant to the terms of this Agreement and the Security Instrument on the respective due dates therefor (up to a maximum amount equal to the aggregate annual insurance premium required hereunder), and Lender
shall so pay such funds to the insurance company having the right to receive such funds; 
 (iii) funds in an amount equal to the amount of
Debt Service due on the Payment Date for the month in which the Payment Date immediately following the date of the transfer from the Holding Account occurs and transfer the same to the Current Debt Service Reserve Account; 
 (iv) at any such time that Manager does not reserve or otherwise set aside for FF&E in accordance with the terms of the Management Agreement, funds
in an amount equal to the Monthly FF&E Reserve Amount for the month in which the Payment Date immediately following the date of the transfer from the Holding Account occurs and transfer the same to the FF&E Reserve Account; 
 (v) provided no Event of Default has occurred and is continuing and to the extent Lender receives the Mezzanine Lender Monthly Debt Service Notice
Letter, funds in an amount equal to the Mezzanine Loan Debt Service for the month in which the Payment Date immediately following the date of the transfer from the Holding Account occurs and transfer the same to the Mezzanine Account; and

  

 41 

 (vi) provided no Event of Default shall have occurred and is then continuing and subject to the
provisions of Section 3.1.5(b), funds in an amount equal to the balance (if any) remaining or deposited in the Holding Account after the foregoing deposits (such remainder being hereinafter referred to as “Excess Cash
Flow”) and transfer the same to the Borrower’s Account (or a third party account as directed by Borrower), free of any Lien or continuing security interest. 
 (b) Notwithstanding anything to the contrary contained herein or in the Security Instrument, but subject to Section 7.3, to the extent that
Borrower shall fail to pay any mortgage recording tax, costs, expenses or other amounts pursuant to Section 19.12 of this Agreement within the time period set forth therein, Lender shall have the right, at any time, upon five
(5) Business Days’ notice to Borrower, to withdraw from the Holding Account, an amount equal to such unpaid taxes, costs, expenses and/or other amounts and pay such amounts to the Person(s) entitled thereto. 
 (c) Lender agrees to deliver each Mezzanine Lender Monthly Debt Service Notice Letter and corresponding disbursement instructions to Cash Management Bank
within two (2) Business Days of Lender’s receipt thereof to the extent Mezzanine Lender is entitled to a payment pursuant to the terms of Section 3.1.5 above. 
 (d) Borrower hereby irrevocably directs that all Excess Cash Flow shall (in lieu of transferring such funds to the Borrower’s Account as Borrower
may have so directed): to the extent Lender has received a Mezzanine Loan Default Notice and until such time as Lender receives a Mezzanine Loan Default Revocation Notice, be deposited directly into the Mezzanine Loan Account for application as
provided in the Mezzanine Loan Agreement. The direction set forth in the immediately preceding sentence shall not be changed or terminated without the written consent of the Mezzanine Lender. Notwithstanding any provision herein to the contrary, no
Mezzanine Loan Default Notice shall be required for the deposit of Proceeds into the Mezzanine Loan Deposit Account in accordance with the terms of Section 6.2.3 hereof. 
 3.1.6 Payments from Sub-Accounts. Borrower irrevocably authorizes Lender to make and, provided no Event of Default
shall have occurred and be continuing, Lender hereby agrees to make, the following payments from the Sub-Accounts to the extent of the monies on deposit therefor: 
 (i) if notified (timely) by Borrower or otherwise determined by Lender in its reasonable discretion that Manager will not pay Impositions or Other Charges, funds from the Tax Reserve Account to Lender sufficient to
permit Lender to pay (or otherwise to Borrower to reimburse Borrower for) (A) Impositions and (B) Other Charges, on the respective due dates therefor, and Lender shall so pay such funds to the Governmental Authority having the right to
receive such funds (or shall reimburse Borrower or Operating Lessee upon confirmation of payment); 
  

 42 

 (ii) at any time when the insurance required to be maintained pursuant to this Agreement is provided
under a blanket policy in accordance with Article VI hereof and the premiums in respect of such blanket policy are not paid or caused to be paid before such premiums become due and payable or at any time that Manager does not pay, reserve for
or otherwise set aside and pay, premiums with respect to the Insurance Requirements and otherwise following an Insurance Reserve Trigger, funds from the Insurance Reserve Account to Lender sufficient to permit Lender to pay insurance premiums for
the insurance required to be maintained pursuant to the terms of this Agreement and the Security Instrument, on the respective due dates therefor, and Lender shall so pay such funds to the insurance company having the right to receive such funds;

 (iii) funds from the Current Debt Service Reserve Account to Lender sufficient to pay Debt Service on each Payment Date, and Lender, on
each Payment Date, shall apply such funds to the payment of the Debt Service payable on such Payment Date; and 
 (iv) if notified (timely)
by Borrower or otherwise determined by Lender in its reasonable discretion that Manager will not reserve for FF&E as required under the Management Agreement, and provided Borrower shall have complied with the procedures set forth in
Section 16.6, funds from the FF&E Reserve Account to the Borrower’s Account to pay for FF&E. 
 If and to the extent
any Guarantor or any Close Affiliate (other than Borrower, Prime Lessee or Operating Lessee) makes a payment of any Imposition, any insurance premium under a blanket policy or capital expenditure or overhead charge which qualifies as an Operating
Expense, with respect to the Property and such expense is provided for in the Budget, provided no Event of Default has occurred and is continuing, such Guarantor or Close Affiliate will be entitled to receive reimbursement from the Manager, Lender,
or the applicable Sub-Account established under hereunder or under the Management Agreement and such payment shall not be required to be re-deposited into the Collection Account. 
 3.1.7 Cash Management Bank. (a) Lender shall have the right to replace the Cash Management Bank with a financial
institution reasonably satisfactory to Borrower in the event that (i) the Cash Management Bank fails, in any material respect, to comply with the Account Agreement, (ii) the Cash Management Bank named herein is no longer the Cash
Management Bank or (iii) the Cash Management Bank is no longer an Approved Bank. Upon the occurrence and during the continuance of an Event of Default, Lender shall have the right at Borrower’s sole cost and expense to replace Cash
Management Bank at any time, without notice to Borrower. Borrower shall cooperate with Lender in connection with the appointment of any replacement Cash Management Bank and the execution by the Cash Management Bank and the Borrower of an Account
Agreement and delivery of same to Lender (with a copy to the Mezzanine Lender). 
 (b) So long as no Event of Default shall have occurred and
be continuing, Borrower shall have the right at its sole cost and expense to replace the Cash Management Bank with a financial institution that is an Approved Bank, provided that such financial institution and Borrower shall execute and deliver to
Lender (with a copy to the Mezzanine Lender) an Account Agreement substantially similar to the Account Agreement executed as of the Closing Date. 
  

 43 

 3.1.8 Borrower’s Account Representations, Warranties and
Covenants. Borrower represents, warrants and covenants that (i) as of the date hereof, Borrower has caused Operating Lessee to direct all Tenants under the Leases to mail all checks and wire all funds with respect
to any payments due under such Leases directly to Manager, (ii) Borrower shall cause Manager and Operating Lessee to deposit all amounts payable to Borrower or Operating Lessee pursuant to the Management Agreement directly into the Collection
Account, (iii) Borrower and Operating Lessee shall pay or cause to be paid all Rents, Cash and Cash Equivalents or other items of Operating Income not otherwise collected by Manager within two Business Days after receipt thereof by Borrower,
Operating Lessee or its Affiliates directly into the Collection Account and, until so deposited, any such amounts held by Borrower or Operating Lessee, shall be deemed to be Account Collateral and shall be held in trust by it for the benefit, and as
the property, of Lender and shall not be commingled with any other funds or property of Borrower, or Operating Lessee, (iv) other than the Manager Accounts, there are no accounts other than the Collateral Accounts maintained by Borrower, or
Operating Lessee with respect to the Property or the collection of Rents and credit card company receivables with respect to the Property and (v) so long as the Loan shall be outstanding, neither Borrower, Operating Lessee, nor any other Person
shall open any other operating accounts with respect to the Property or the collection of Rents or credit card company receivables with respect to the Property, except for the Collateral Accounts and the Manager Accounts; provided that,
Borrower and Manager shall not be prohibited from utilizing one or more separate accounts for the disbursement or retention of funds that have been transferred to the Borrower’s Account pursuant to Section 3.1.5. 
 3.1.9 Account Collateral and Remedies. (a) Upon the occurrence and during the continuance of an Event of Default,
without additional notice from Lender to Borrower, (i) Lender may, in addition to and not in limitation of Lender’s other rights, make any and all withdrawals from, and transfers between and among, the Collateral Accounts as Lender shall
determine in its sole and absolute discretion to pay any Obligations; (ii) all Excess Cash Flow shall be retained in the Holding Account or applicable Sub-Accounts, (iii) all payments to the Mezzanine Lender pursuant to
Section 3.1.5 shall immediately cease and (iv) Lender may liquidate and transfer any amounts then invested in Permitted Investments to the Collateral Accounts to which they relate or reinvest such amounts in other Permitted
Investments as Lender may reasonably determine is necessary to perfect or protect any security interest granted or purported to be granted hereby or to enable Lender to exercise and enforce Lender’s rights and remedies hereunder with respect to
any Account Collateral or to preserve the value of the Account Collateral. 
 (b) Upon the occurrence and during the continuance of an Event
of Default, Borrower hereby irrevocably constitutes and appoints Lender as Borrower’s true and lawful attorney-in-fact, with full power of substitution, to execute, acknowledge and deliver any instruments and to exercise and enforce every
right, power, remedy, option and privilege of Borrower with respect to the Account Collateral, and do in the name, place and stead of Borrower, all such acts, things and deeds for and on behalf of and in the name of Borrower, which Borrower could or
might do or which Lender may deem necessary or desirable to more fully vest in Lender the rights and remedies provided for herein and to accomplish the purposes of this Agreement. The foregoing powers of attorney are irrevocable and coupled with an
interest. Upon the occurrence and during the continuance of an Event of Default, Lender may perform or cause performance of any such agreement, and any reasonable expenses of Lender incurred in connection therewith shall be paid by Borrower as
provided in Section 5.1.16. 
  

 44 

 (c) Borrower hereby expressly waives, to the fullest extent permitted by law, presentment, demand,
protest or any notice of any kind (except as expressly required under the Loan Documents) in connection with this Agreement or the Account Collateral. Borrower acknowledges and agrees that ten (10) Business Days’ prior written notice of
the time and place of any public sale of the Account Collateral or any other intended disposition thereof shall be reasonable and sufficient notice to Borrower within the meaning of the UCC. 
 3.1.10 Transfers and Other Liens. Borrower agrees that it will not (i) sell or otherwise dispose of any of the
Account Collateral except as may be expressly permitted under the Loan Documents, or (ii) create or permit to exist any Lien upon or with respect to all or any of the Account Collateral, except for the Lien granted to Lender under this
Agreement. 
 3.1.11 Reasonable Care. Beyond the exercise of reasonable care in the custody thereof,
Lender shall have no duty as to any Account Collateral in its possession or control as agent therefor or bailee thereof or any income thereon or the preservation of rights against any person or otherwise with respect thereto. Lender shall be deemed
to have exercised reasonable care in the custody and preservation of the Account Collateral in its possession if the Account Collateral is accorded treatment substantially equal to that which Lender accords its own property, it being understood that
Lender shall not be liable or responsible for any loss or damage to any of the Account Collateral, or for any diminution in value thereof, by reason of the act or omission of Lender, its Affiliates, agents, employees or bailees, except to the extent
that such loss or damage results from Lender’s gross negligence or willful misconduct. In no event shall Lender be liable either directly or indirectly for losses or delays resulting from any event which may be the basis of an Excusable Delay,
computer malfunctions, interruption of communication facilities, labor difficulties or other causes beyond Lender’s reasonable control or for indirect, special or consequential damages except to the extent of Lender’s gross negligence or
willful misconduct. Notwithstanding the foregoing, Borrower acknowledges and agrees that (i) Lender does not have custody of the Account Collateral, (ii) Cash Management Bank has custody of the Account Collateral, (iii) the initial
Cash Management Bank was chosen by Borrower and (iv) Lender has no obligation or duty to supervise Cash Management Bank or to see to the safe custody of the Account Collateral. 
 3.1.12 Lender’s Liability. (a) Lender shall be responsible for the performance only of such duties with respect
to the Account Collateral as are specifically set forth in this Section 3.1 or elsewhere in the Loan Documents, and no other duty shall be implied from any provision hereof. Lender shall not be under any obligation or duty to perform any
act with respect to the Account Collateral which would cause it to incur any expense or liability or to institute or defend any suit in respect hereof, or to advance any of its own monies. Borrower shall indemnify and hold Lender, its employees and
officers harmless from and against any loss, cost or damage (including, without limitation, reasonable attorneys’ fees and disbursements) incurred by Lender in connection with the transactions contemplated hereby with respect to the Account
Collateral (excluding losses on Permitted Investments) except as such may be caused by the gross negligence or willful misconduct of Lender, its employees, officers or agents. 
  

 45 

 (b) Lender shall be protected in acting upon any notice, resolution, request, consent, order,
certificate, report, opinion, bond or other paper, document or signature believed by it in good faith to be genuine, and, in so acting, it may be assumed that any person purporting to give any of the foregoing in connection with the provisions
hereof has been duly authorized to do so. Lender may consult with counsel, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder and in good faith in
accordance therewith. 
 3.1.13 Continuing Security Interest. This Agreement shall create a continuing
security interest in the Account Collateral and shall remain in full force and effect until payment in full of the Indebtedness; provided, however, such security interest shall automatically terminate with respect to funds which were
duly deposited into Borrower’s Account in accordance with the terms hereof. Upon payment in full of the Indebtedness, this security interest shall automatically terminate without further notice from any party and Borrower shall be entitled to
the return, upon its request, of such of the Account Collateral as shall not have been sold or otherwise applied pursuant to the terms hereof and Lender shall execute such instruments and documents as may be reasonably requested by Borrower to
evidence such termination and the release of the Account Collateral. 
 IV. REPRESENTATIONS AND WARRANTIES 
 Section 4.1 Borrower Representations. Borrower represents and warrants as of the Closing Date that: 
 4.1.1 Organization. Each Co-Borrower, Guarantor, Prime Lessee and Operating Lessee is a limited liability company, and
have been duly organized and is validly existing and in good standing pursuant to the laws of the State of Delaware with requisite power and authority to own its properties and to transact the businesses in which it is now engaged. Each of Borrower,
Prime Lessee and Operating Lessee has 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. Collectively, Borrower, Prime
Lessee and Operating Lessee possesses all rights, licenses, permits and authorizations, governmental or otherwise, necessary to entitle it to own its properties and to transact the businesses in which each is now engaged, and the sole business of
Borrower is the ownership of the Property. The organizational structure of Borrower upon the closing is accurately depicted by the schematic diagram attached hereto as Exhibit H-1. Borrower shall not itself, and shall not permit Prime
Lessee or Operating Lessee to, change its name, identity, corporate structure or jurisdiction of organization unless it shall have given Lender seven (7) days prior written notice of any such change and shall have taken all steps reasonably
requested by Lender to grant, perfect, protect and/or preserve the security interest granted hereunder to Lender. 
 4.1.2
Proceedings. Each of Borrower, Prime Lessee, Operating Lessee, and Guarantor, has full power to and has taken all necessary action to authorize the execution, delivery and performance of this Agreement and the other
Loan Documents. This Agreement and the other Loan Documents have been duly executed and delivered by, or on behalf of, each of Borrower, Prime Lessee, Operating Lessee, and Guarantor, as applicable, and constitute legal, valid and binding
obligations of Borrower, Prime Lessee, Operating Lessee, and Guarantor, as 
  

 46 

 applicable, enforceable against Borrower, Prime Lessee, Operating Lessee, and Guarantor, as applicable, in accordance
with their respective terms, subject only to applicable bankruptcy, insolvency and similar laws affecting rights of creditors generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought
in a proceeding in equity or at law). 
 4.1.3 No Conflicts. The execution, delivery and performance of
this Agreement and the other Loan Documents by Borrower, Prime Lessee, Operating Lessee, and Guarantor, as applicable, will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, or result in the
creation or imposition of any lien, charge or encumbrance (other than pursuant to the Loan Documents) upon any of the property or assets of Borrower, Prime Lessee, Operating Lessee, and Guarantor, pursuant to the terms of any indenture, mortgage,
deed of trust, loan agreement, partnership agreement or other agreement or instrument to which Borrower, Prime Lessee, Operating Lessee, and Guarantor, is a party or by which any of Borrower’s, Prime Lessee’s, Operating Lessee’s, and
Guarantor’s, property or assets is subject (unless consents from all applicable parties thereto have been obtained), nor will such action result in any violation of the provisions of any statute or any order, rule or regulation of any
Governmental Authority, and any consent, approval, authorization, order, registration or qualification of or with any Governmental Authority required for the execution, delivery and performance by Borrower, Prime Lessee, Operating Lessee, and
Guarantor, of this Agreement or any other Loan Documents has been obtained and is in full force and effect. 
 4.1.4
Litigation. There are no lawsuits, administrative proceedings, arbitration proceedings, or other such legal proceedings that have been filed and served upon Borrower (or with respect to which Borrower has otherwise
received proper notice) or, to the Best of Borrower’s Knowledge, otherwise pending or threatened against or affecting Borrower, Prime Lessee, Operating Lessee, or the Property whose outcome, if determined against Borrower, Prime Lessee,
Operating Lessee, or the Property, would have a Material Adverse Effect. To the Best of Borrower’s Knowledge, Schedule I includes each pending action against Borrower, Prime Lessee, Operating Lessee, or otherwise affecting the
Property that involves a claim or claims for either (a) monetary damages exceeding $250,000, or (b) injunctive relief or other equitable remedy that could have a Material Adverse Effect, excluding: (i) actions for monetary damages
only that have been tendered to, and accepted without reservation of rights by, the liability insurance carrier for the Property, (ii) worker’s compensation claims, and (iii) any proceedings by employees working at the Property where
the amount claimed in such proceeding is less than $250,000; to the Best of Borrower’s Knowledge, the aggregate amount of such claims described in subclause (iii) of this sentence is less than $1,000,000. 
 4.1.5 Agreements. Neither Borrower, Prime Lessee nor Operating Lessee is a party to any agreement or instrument or
subject to any restriction which is reasonably likely to have a Material Adverse Effect. Neither Borrower, Prime Lessee nor Operating Lessee is in default in any respect in the performance, observance or fulfillment of any of the obligations,
covenants or conditions contained in any agreement or instrument to which it is a party or by which Borrower, Prime Lessee, Operating Lessee, or the Property is bound, which default is reasonably likely to have a Material Adverse Effect. Neither
Borrower, Prime Lessee nor Operating Lessee has any material financial obligation (contingent or otherwise) under any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which Borrower, Prime Lessee or Operating
Lessee is a party or by which 
  

 47 

 Borrower, Prime Lessee, Operating Lessee, or the Property is otherwise bound, other than (a) obligations incurred in
the ordinary course of the operation of the Property, including membership programs disclosed in writing to Lender on or prior to the date hereof, and (b) obligations under the Loan Documents. 
 4.1.6 Title. Borrower has good, marketable and insurable fee simple title and/or leasehold title, as applicable, to
the Land and the Improvements, free and clear of all Liens whatsoever except the Permitted Encumbrances, such other Liens as are permitted pursuant to the Loan Documents and the Liens created by the Loan Documents. Borrower or Operating Lessee, as
applicable, has good and marketable title to the remainder of the Property, free and clear of all Liens whatsoever except the Permitted Encumbrances. The Security Instrument, when properly recorded in the appropriate records, and Accommodation
Security Documents, together with any Uniform Commercial Code financing statements required to be filed in connection therewith, will create (a) a valid, perfected first mortgage lien on the Land and the Improvements, subject only to Permitted
Encumbrances and (b) perfected security interests in and to, and perfected collateral assignments of, all personalty (including the Leases), all in accordance with the terms thereof, in each case subject only to any applicable Permitted
Encumbrances. Except as may be indicated in and insured over by the Title Policy, to the Best of Borrower’s Knowledge, there are no claims for payment for work, labor or materials affecting the Property which are or may become a lien prior to,
or of equal priority with, the Liens created by the Loan Documents. Borrower represents and warrants that none of the Permitted Encumbrances will have a Material Adverse Effect. Borrower shall preserve its right, title and interest in and to the
Property for so long as the Note remains outstanding and will warrant and defend same and the validity and priority of the Lien hereof from and against any and all claims whatsoever other than the Permitted Encumbrances. 
 4.1.7 No Bankruptcy Filing. None of Borrower, Prime Lessee, Operating Lessee, or Guarantor, 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 such entity’s assets or property, and Borrower has no knowledge of any Person contemplating the filing of
any such petition against Borrower or against Prime Lessee, Operating Lessee or any Guarantor. 
 4.1.8 Full and Accurate
Disclosure. To the Best of Borrower’s Knowledge, no statement of fact made by Borrower in this Agreement or in any of the other Loan Documents contains any untrue statement of a material fact or omits to state any
material fact necessary to make statements contained herein or therein not misleading. There is no fact presently known to Borrower which has not been disclosed which has a Material Adverse Effect, or to the Best of Borrower’s Knowledge could
reasonably be expected to have a Material Adverse Effect. 
 4.1.9 All Property. The Property constitutes
all of the real property, personal property, equipment and fixtures currently (i) owned or leased by Borrower, Prime Lessee or Operating Lessee or (ii) used in the operation of the business located on the Property, other than items owned
by Manager or any Tenants (excluding items owned by Prime Lessee or Operating Lessee). 
  

 48 

 4.1.10 ERISA. (a) Borrower does not maintain or contribute to and is
not required to contribute to, an “employee benefit plan” as defined by Section 3(3) of ERISA, which is subject to Title IV of ERISA (other than a “multiemployer plan” as defined by Section 3(37) of ERISA), and Borrower
(i) has no knowledge of any material liability which has been incurred or is expected to be incurred by Borrower which is reasonably likely to result in a Material Adverse Effect and is or remains unsatisfied for any taxes or penalties or
unfunded contributions with respect to any “employee benefit plan” or any “plan,” within the meaning of Section 4975(e)(1) of the Internal Revenue Code or any other benefit plan (other than a “multiemployer plan”)
maintained, contributed to, or required to be contributed to by Borrower or by any entity that is under common control with Borrower within the meaning Section 4001(a)(14) of ERISA (each, an “ERISA Affiliate”) (each, a
“Plan”) or any plan that would be a Plan but for the fact that it is a multiemployer plan within the meaning of ERISA Section 3(37); and (ii) has made and shall continue to make when due all required contributions
to all such Plans (other than Plans relating to ERISA Affiliates), if any, where the failure to so contribute is reasonably likely to result in a Material Adverse Effect. Each such Plan (other than Plans relating to ERISA Affiliates), if any, has
been and will be administered in material compliance with its terms and the applicable provisions of ERISA, the Internal Revenue Code, and any other applicable federal or state law; and no action shall be taken or fail to be taken that would result
in the disqualification or loss of tax-exempt status of any such Plan intended to be qualified and/or tax exempt; and 
 (b) With respect to
any “multiemployer plan,” (i) Borrower has not, since September 26, 1980, made or suffered a “complete withdrawal” or a “partial withdrawal,” as such terms are respectively defined in Sections 4203 and 4205 of
ERISA, (ii) Borrower has made and shall continue to make when due all required contributions to all such “multiemployer plans” and (iii) no ERISA Affiliate has, since September 26, 1980, made or suffered a “complete
withdrawal” or a “partial withdrawal,” as such terms are respectively defined in Sections 4203 and 4205 of ERISA which withdrawal is reasonably expected to have a Material Adverse Effect. 
 (c) Borrower is not an employee benefit plan, as defined in Section 3(3) of ERISA, whether or not subject to Title I of ERISA, 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 and transactions by or with Borrower are not subject to similar laws regulating investment of, and fiduciary
obligations with respect to, plans similar to the provisions of Section 406 of ERISA or Section 4975 of the Code currently in effect (“Similar Laws”), which prohibit or otherwise restrict the transactions
contemplated by this Agreement. 
 4.1.11 Compliance. Borrower and the Property and the use thereof
comply in all material respects with all applicable Legal Requirements, including, without limitation, building and zoning ordinances and codes except where the failure to so comply is not reasonably expected to result in a Material Adverse Effect.
To the Best of Borrower’s Knowledge, neither Borrower, Prime Lessee nor Operating Lessee is in default or in violation of any order, writ, injunction, decree or demand of any Governmental Authority. To the Best of Borrower’s Knowledge,
there has not been committed by Borrower, Prime Lessee or Operating Lessee any act or omission affording the federal government or any other Governmental Authority the right of forfeiture as against the Property or any part thereof or any monies
paid in performance of Borrower’s obligations under any of the Loan Documents. 
  

 49 

 4.1.12 Financial Information. To the Best of Borrower’s
Knowledge, all financial data including, without limitation, the statements of cash flow and income and operating expense, that have been delivered by or on behalf of Borrower to Lender in respect of the Property (i) are true, complete and
correct in all material respects, (ii) fairly represent the financial condition of the Property as of the date of such reports, and (iii) 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. Neither Borrower, Prime Lessee nor Operating Lessee has any material contingent liabilities, liabilities for delinquent taxes, unusual forward or long-term
commitments or unrealized or anticipated losses from any unfavorable commitments that are known to Borrower and could reasonably be expected to have a Material Adverse Effect, except as referred to or reflected in said financial statements and
operating statements. Since the date of such financial statements, there has been no material adverse change in the financial condition, operations or business of Borrower, Prime Lessee or Operating Lessee from that set forth in said financial
statements. 
 4.1.13 Condemnation. No Condemnation has been commenced or, to the Best of Borrower’s
Knowledge, is contemplated with respect to all or any portion of the Property. 
 4.1.14 Federal Reserve
Regulations. None of the proceeds of the Loan will be used for the purpose of purchasing or carrying any “margin stock” as defined in Regulation U, Regulation X or Regulation T or for the purpose of reducing or
retiring any Indebtedness which was originally incurred to purchase or carry “margin stock” or for any other purpose which might constitute this transaction a “purpose credit” within the meaning of Regulation U or Regulation X.
As of the Closing Date, Borrower does not own any “margin stock.” 
 4.1.15 Utilities and Public
Access. The Property has rights of access to public ways and is served by water, sewer, sanitary sewer and storm drain facilities adequate to service the Property for its intended uses. To the Best of Borrower’s
Knowledge, all utilities necessary to the existing use of the Property are located either in the public right-of-way abutting the Property (which are connected so as to serve the Property without passing over other property) or in recorded easements
serving the Property. All roads necessary for the use of the Property for its current purposes have been completed and, if necessary, dedicated to public use. 
 4.1.16 Not a Foreign Person. Borrower is not a foreign person within the meaning of § 1445(f)(3) of the Code. 
 4.1.17 Separate Lots. The Property is comprised of one (1) or more contiguous parcels which constitute a
separate tax lot or lots and does not constitute or include a portion of any other tax lot not a part of the Property. 
 4.1.18
Assessments. To the Best of Borrower’s Knowledge, there are no pending or proposed special or other assessments for public improvements or otherwise affecting the Property, nor are there any contemplated
improvements to the Property that may result in such special or other assessments. 
  

 50 

 4.1.19 Enforceability. The Loan Documents are not subject to any
existing right of rescission, set-off, counterclaim or defense by Borrower, 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 applicable bankruptcy, insolvency and similar laws affecting rights of creditors generally, and subject as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in
equity or at law)), and Borrower has not asserted any right of rescission, set-off, counterclaim or defense with respect thereto. 
 4.1.20 No Prior Assignment. There are no prior sales, transfers or assignments of the Leases or any portion of the Rents due and payable or to become due and payable which are presently outstanding
following the funding of the Loan, other than those being terminated or assigned to Lender concurrently herewith. 
 4.1.21
Insurance. Borrower has obtained and has delivered to Lender certified copies or certificates of all insurance policies required under this Agreement, reflecting the insurance coverages, amounts and other requirements
set forth in this Agreement. Borrower has not, and to the Best of Borrower’s Knowledge no Person has, done by act or omission anything which would impair the coverage of any such policy. 
 4.1.22 Use of Property. The Property is used exclusively for hotel purposes and other appurtenant and related uses.

 4.1.23 Certificate of Occupancy; Licenses. To the Best of Borrower’s Knowledge, all material
certifications, permits, licenses (including, without limitation, a license to serve alcohol on the Property) and approvals, including without limitation, certificates of completion and occupancy permits required of Borrower for the legal use,
occupancy and operation of the Property for hotel purposes (collectively, the “Licenses”), have been obtained and are in full force and effect. Borrower shall keep and maintain all Licenses necessary for the operation of the
Property for hotel purposes. The use being made of the Property is in conformity with the certificate of occupancy issued for the Property. 
 4.1.24 Flood Zone. Except as may be shown on the Survey with respect to portions of the Improvements other than buildings and enclosed structures, none of the Improvements on the Property are located in an
area as identified by the Federal Emergency Management Agency as an area having special flood hazards. 
 4.1.25 Physical
Condition. To the Best of Borrower’s Knowledge and except as expressly disclosed in the Physical Conditions Report, the Property, including, without limitation, all buildings, Improvements, parking facilities,
sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment, elevators, exterior sidings and doors, landscaping, irrigation systems and all structural components, are in good
condition, order and repair in all material respects; to the Best of Borrower’s Knowledge and except as disclosed in the Physical Conditions Report, there exists no structural or other material defects or damages in or to the Property, whether
latent or otherwise, and Borrower has not received any written notice from any insurance company or bonding company of any defects or inadequacies in the Property, or any part thereof, which 
  

 51 

 would adversely affect the insurability of the same or cause the imposition of extraordinary premiums or charges thereon
or of any termination or threatened termination of any policy of insurance or bond. 
 4.1.26 Boundaries.
To the Best of Borrower’s Knowledge and except as disclosed on the Survey, all of the Improvements lie wholly within the boundaries and building restriction lines of the Real Property, and no improvements on adjoining properties encroach upon
the Real Property, and no easements or other encumbrances upon the Real Property encroach upon any of the Improvements, so as to have a Material Adverse Effect on the value or marketability of the Real Property except those which are insured against
by the Title Policy. 
 4.1.27 Leases. The Property is not subject to any Leases other than the Prime
Lease, the Sublease and the Leases described in the certified rent roll delivered in connection with the origination of the Loan. Such certified rent roll is true, complete and correct in all material respects as of the date set forth therein. No
Person has any possessory interest in the Property or right to occupy the same (other than typical short-term occupancy rights of hotel guests which are not the subject of a written agreement) except under and pursuant to the provisions of the
Leases. The current Leases are in full force and effect and to the Best of Borrower’s Knowledge, there are no material defaults thereunder by either party (other than as expressly disclosed on the certified rent roll delivered to Lender or the
Tenant estoppel certificates delivered to Lender in connection with the closing of the Loan) and there are no conditions that, with the passage of time or the giving of notice, or both, would constitute material defaults thereunder. No Rent has been
paid more than one (1) month in advance of its due date, except as disclosed in the Tenant estoppel certificates delivered to Lender in connection with the closing of the Loan. There has been no prior sale, transfer or assignment, hypothecation
or pledge by Borrower of any Lease or of the Rents received therein, which will be outstanding following the funding of the Loan, other than those being assigned to Lender concurrently herewith. No Tenant under any Lease has a right or option
pursuant to such Lease or otherwise to purchase all or any part of the property of which the leased premises are a part. 
 4.1.28
Filing and Recording Taxes. All transfer taxes, deed stamps, intangible taxes or other amounts in the nature of transfer taxes required to be paid by any Person under applicable Legal Requirements currently in effect
in connection with the transfer of the Property to Borrower have been paid and the granting and recording of the Security Instrument and the UCC financing statements required to be filed in connection with the Loan. All mortgage, mortgage recording,
stamp, intangible or other similar tax required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of the
Loan Documents, including, without limitation, the Security Instrument, have been paid, and, under current Legal Requirements, the Security Instrument is enforceable against Borrower in accordance with its terms by Lender (or any subsequent holder
thereof) subject only to applicable bankruptcy, insolvency and similar laws affecting rights of creditors generally, and subject as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in
equity or at law. 
 4.1.29 Single Purpose Entity/Separateness. (a) Borrower hereby represents, warrants
and covenants that each of Operating Lessee, Prime Lessee, Borrower and 
  

 52 

 Mezzanine Borrower is and has been, since the date of its respective formation, a Single Purpose Entity and has not,
since the date of its respective formation, conducted any business and owned any property whatsoever, except as specifically described in the Non-Consolidation Opinion. 
 (b) All of the assumptions made in the Non-Consolidation Opinion, including, but not limited to, any exhibits attached thereto and any certificates delivered by Borrower in connection with the issuance of the
Non-Consolidation Opinion, are true and correct in all respects and any assumptions made in any subsequent non-consolidation opinion delivered in connection with the Loan Documents (an “Additional Non-Consolidation Opinion”),
including, but not limited to, any exhibits attached thereto, are true and correct in all material respects. Borrower has complied with all of the assumptions made with respect to it in the Non-Consolidation Opinion. To the Best of Borrower’s
Knowledge, each entity other than Borrower with respect to which an assumption shall be made in any Additional Non-Consolidation Opinion will have complied and will comply with all of the assumptions made with respect to it in any Additional
Non-Consolidation Opinion. 
 4.1.30 Management Agreement. The Management Agreement 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 would constitute a default thereunder. The Manager is not an Affiliate of Borrower. 
 4.1.31 Illegal Activity. No portion of the Property has been or will be purchased with proceeds of any illegal
activity. 
 4.1.32 Intentionally Deleted. 
 4.1.33 Tax Filings. Borrower has filed (or has obtained effective extensions for filing) all federal, state and local tax returns required to be filed and has paid or made adequate
provision for the payment of all federal, state and local taxes, charges and assessments payable by Borrower. 
 4.1.34
Solvency/Fraudulent Conveyance. Borrower (a) has not entered into the transaction contemplated by this Agreement or any Loan Document with the actual intent to hinder, delay, or defraud any creditor and
(b) has received reasonably equivalent value in exchange for its obligations under the Loan Documents. After giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following the making of the
Loan, exceed Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed and contingent liabilities. The fair saleable value of Borrower’s assets is and will, immediately following the making of the
Loan, be greater than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on its Debts as such Debts become absolute and matured. Borrower’s assets do not and, immediately following the making of the
Loan will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Borrower does not intend to, and does not believe that it will, incur 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).

  

 53 

 4.1.35 Investment Company Act. Borrower is not (a) an investment
company or a company Controlled by an investment company, within the meaning of the Investment Company Act of 1940, as amended, (b) a holding company or a subsidiary company of a holding company or an affiliate of either a holding company or a
subsidiary company within the mean of the Public Utility Holding Company Act of 1935, as amended or (c) subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money. 
 4.1.36 Interest Rate Cap Agreement. The Interest Rate Cap Agreement is in full force and effect and enforceable
against Borrower in accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws generally affecting the enforcement of creditors’ rights and subject as to enforceability to general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law). 
 4.1.37 Labor. Except as described
on Schedule I, no work stoppage, labor strike, slowdown or lockout is pending or threatened by employees and other laborers at the Property. Except as described on Schedule I, neither Borrower, Prime Lessee, nor Operating
Lessee (i) is involved in or, to the Best of Borrower’s Knowledge, threatened with any material labor dispute, material grievance or litigation relating to labor matters involving any employees and other laborers at the Property,
including, without limitation, violation of any federal, state or local labor, safety or employment laws (domestic or foreign) and/or charges of unfair labor practices or discrimination complaints, (ii) to the Best of Borrower’s Knowledge,
has engaged with respect to the Property, in any unfair labor practices within the meaning of the National Labor Relations Act or the Railway Labor Act, or (iii) is a party to, or bound by, any existing collective bargaining agreement or union
contract with respect to employees and other laborers at the Property. 
 4.1.38 Brokers. Neither
Borrower nor, to the Best of Borrower’s Knowledge, Lender has dealt with any broker or finder with respect to the loan transactions contemplated by the Loan Documents and neither party has done any acts, had any negotiations or conversations,
or made any agreements or promises which will in any way create or give rise to any obligation or liability for the payment by either party of any brokerage fee, charge, commission or other compensation to any Person with respect to the transactions
contemplated by the Loan Documents. Borrower covenants and agrees that it shall pay as and when due any and all brokerage fees, charges, commissions or other compensation or reimbursement due to any broker of Borrower with respect to the
transactions contemplated by the Loan Documents. Borrower and Lender shall each indemnify and hold harmless the other from and against any loss, liability, cost or expense, including any judgments, attorneys’ fees, or costs of appeal, incurred
by the other party and arising out of or relating to any claim for brokerage commissions or finder’s fees alleged to be due as a result of the indemnifying party’s agreements or actions. The provisions of this Section 4.1.38
shall survive the expiration and termination of this Agreement and the payment of the Indebtedness. 
 4.1.39 No Other
Debt. Borrower has not borrowed or received debt financing that has not been heretofore repaid in full, other than the Permitted Debt. 
  

 54 

 4.1.40 Taxpayer Identification Number. Borrower’s Federal
taxpayer identification numbers are 20-5432891 (SHR Scottsdale X, L.L.C.) and 20-5432996 (SHR Scottsdale Y, L.L.C.). 
 4.1.41
Compliance with Anti-Terrorism, Embargo and Anti-Money Laundering Laws. (i) None of Borrower or any Person who owns any equity interest in or Controls Borrower or, to the Best of Borrower’s Knowledge, Guarantor
or Ultimate Equity Owners, currently is identified on the OFAC List or otherwise qualifies as a Prohibited Person, and Borrower has implemented procedures to ensure that no Person who now or hereafter owns any equity interest in Borrower, Ultimate
Equity Owners or Guarantor is a Prohibited Person or Controlled by a Prohibited Person, and (ii) none of Borrower, Ultimate Equity Owners or Guarantor is in violation of any Legal Requirements relating to anti-money laundering or
anti-terrorism, including, without limitation, Legal Requirements related to transacting business with Prohibited Persons or the requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, U.S. Public Law 107-56, and the related regulations issued thereunder, including temporary regulations, all as amended from time to time. 
 4.1.42 Knowledge Qualifications. Borrower represents that Scott Dalecio, Claude Brock, Eric Resnick and Peter McDermott are in a position to have meaningful knowledge with respect to
the matters set forth in the Loan Documents which have been qualified to the knowledge of such Persons. 
 4.1.43
Leases. Borrower represents that it has heretofore delivered to Lender true and complete copies of all Leases and any and all amendments or modifications thereof. 
 4.1.44 FF&E. Manager is reserving for FF&E on a monthly basis in accordance with the terms of the Management
Agreement not less than an amount equal to four percent (4%) of gross revenues with respect to the Property; such reserves are maintained in the Manager FF&E Reserve Account (subject to disbursements therefrom as permitted by the Management
Agreement). 
 4.1.45 Ground Lease. Borrower hereby represents and warrants to Lender the following with respect to the Ground
Lease: 
 (a) Recording; Modification. A memorandum of the Ground Lease has been duly recorded. The Ground Lease permits the
interest of Borrower to be encumbered by a mortgage. Except as described in the definition of “Ground Lease”, there have not been amendments or modifications to the terms of the Ground Lease since its recordation. Assuming compliance by
Lender with Section 15.2 of the Ground Lease, the Ground Lease may not be canceled, surrendered or modified without the prior written consent of Lender. 
 (b) No Liens. Except for the Permitted Encumbrances, Borrower’s interest in the Ground Lease is not subject to any Liens or encumbrances superior to, or of equal priority with, the related
Security Instrument other than the ground lessor’s related fee interest. 
  

 55 

 (c) Ground Lease Assignable. After Lender complies with Section 15.2 of the
Ground Lease, any sale of the Ground Lease and of the leasehold estate created thereby in any proceeding for the foreclosure of the Security Instrument shall be deemed to be a permitted sale, transfer or assignment of the Ground Lease and of the
leasehold estate created thereby. 
 (d) Default. As of the date hereof, the Ground Lease is in full force and effect
and no default has occurred under the Ground Lease and there is no existing condition which, but for the passage of time or the giving of notice, could result in a default under the terms of the Ground Lease. 
 (e) Notice. Assuming compliance by Lender with Section 15.2 of the Ground Lease, the Ground Lease requires the ground lessor to
give Lender notice of any default by Borrower to Lender as well as notice of termination of the Ground Lease. 
 (f) Cure.
Assuming compliance by Lender with Section 15.2 of the Ground Lease, Lender is permitted the opportunity to cure any default under the Ground Lease as set forth in Section 15.4 of the Ground Lease. 
 (g) Term. The Ground Lease has a term which extends not less than ten (10) years beyond the Maturity Date. 
 (h) New Lease. Assuming compliance by Lender with Section 15.2 of the Ground Lease, the Ground Lease requires the ground lessor to
enter into a new lease with Lender upon termination of the Ground Lease by reason of a default by ground lessee thereunder in the event of compliance with the provisions of Section 15.12 of the Ground Lease. 
 (i) Insurance Proceeds. Under the terms of the Ground Lease and the Security Instrument, taken together, any related insurance and
condemnation proceeds will be applied either to the repair or restoration of all or part of the Ground Lease 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. The Ground Lease does
not impose any restrictions on subleasing other than a “sublet in whole” as is more fully set forth in Article XIII of the Ground Lease. 
 4.1.46 TIC. The TIC Agreement is in full force and effect and no default has occurred and there is no condition existing which, but for the passage of time or the giving of notice, or both, could result in a default under the
terms of the TIC Agreement. Borrower has delivered to Lender a true and correct copy of the TIC Agreement. 
 4.1.47 Survival of
Representations. Borrower agrees that all of the representations and warranties of Borrower set forth in Section 4.1 and elsewhere in this Agreement and in the other Loan Documents shall be deemed given and
made as of the date of the funding of the Loan and survive for so long as any amount remains owing to Lender under this Agreement or any of the other Loan Documents by Borrower or Guarantor unless a longer survival period is expressly stated in a
Loan Document with respect to a specific representation 
  

 56 

 or warranty, in which case, for such longer period. 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 Closing Date and until payment and performance in full of all obligations of Borrower under the Loan Documents or the earlier release of the Lien of this
Agreement and the Security Instrument in accordance with the terms of this Agreement and the other Loan Documents, Borrower hereby covenants and agrees with Lender to comply with and to cause Prime Lessee and Operating Lessee to comply with, the
following covenants, and in such connection, references in this Article V to Borrower shall alternatively mean Prime Lessee or Operating Lessee, as the context may require: 
 5.1.1 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, Borrower, in accordance with the provisions of each Loan Document, and shall not enter into or otherwise suffer or permit any amendment, waiver, supplement, termination or other
modification of any Loan Document executed and delivered by, or applicable to, Borrower, as applicable, without the prior written consent of Lender. 
 5.1.2 Existence; Compliance with Legal Requirements; Insurance. Subject to Borrower’s right of contest pursuant to Section 7.3, Borrower shall comply and cause the
Property to be in compliance with all Legal Requirements applicable to the Borrower, Manager and the Property and the uses permitted upon the Property. Borrower shall do or cause to be done all things necessary to preserve, renew and keep in full
force and effect its existence, rights, licenses, permits and franchises necessary to comply with all Legal Requirements applicable to it and the Property. There shall never be committed by Borrower, and Borrower shall not knowingly permit any other
Person in occupancy of or involved with the operation or use of the Property to commit, any act or omission affording the federal government or any state or local government the right of forfeiture as against the Property or any part thereof or any
monies paid in performance of Borrower’s obligations under any of the Loan Documents. Borrower hereby covenants and agrees not to commit, knowingly permit or suffer to exist any act or omission affording such right of forfeiture. Borrower shall
at all times maintain, preserve and protect all material franchises and trade names and preserve all the remainder of its property used in the conduct of its business and shall keep the Property in good working order and repair, and from time to
time make, or cause to be made, all reasonably necessary repairs, renewals, replacements, betterments and improvements thereto, all as more fully set forth in the Security Instrument. Borrower shall keep the Property insured at all times to such
extent and against such risks, and maintain liability and such other insurance, as set forth in this Agreement. 
 5.1.3
Litigation. Borrower shall give prompt written notice to Lender of any litigation or governmental proceedings pending or threatened in writing against Borrower which, if determined adversely to Borrower, would have a
Material Adverse Effect. 
  

 57 

 5.1.4 Single Purpose Entity. (a) Borrower shall remain a Single
Purpose Entity. 
 (b) Except as permitted by the Loan Documents, Borrower shall continue to maintain its own deposit account or accounts,
separate from those of any Affiliate, with commercial banking institutions. None of the funds of Borrower will be commingled with the funds of any other Affiliate. 
 (c) To the extent that Borrower shares the same officers or other employees as any of its Affiliates, the salaries of and the expenses related to providing benefits to such officers and other employees shall be fairly
allocated among such entities, and each such entity shall bear its fair share of the salary and benefit costs associated with all such common officers and employees. 
 (d) To the extent that Borrower jointly contracts with any of its Affiliates to do business with vendors or service providers or to share overhead expenses, the costs incurred in so doing shall be allocated fairly
among such entities, and each such entity shall bear its fair share of such costs. To the extent that Borrower contracts or does business with vendors or service providers where the goods and services provided are partially for the benefit of any
other Person, the costs incurred in so doing shall be fairly allocated to or among such entities for whose benefit the goods and services are provided, and each such entity shall bear its fair share of such costs. All material transactions between
(or among) Borrower and any of its Affiliates shall be conducted on substantially the same terms (or on more favorable terms for Borrower) as would be conducted with third parties. 
 (e) To the extent that Borrower or any of its Affiliates have offices in the same location, there shall be a fair and appropriate allocation of overhead
costs among them, and each such entity shall bear its fair share of such expenses. 
 (f) Borrower shall conduct its affairs strictly in
accordance with its organizational documents, and observe all necessary, appropriate and customary corporate, limited liability company or partnership formalities, as applicable, including, but not limited to, obtaining any and all consents
necessary to authorize actions taken or to be taken, and maintaining accurate and separate books, records and accounts, including, without limitation, payroll and intercompany transaction accounts. 
 (g) In addition, Borrower shall: (i) maintain books and records separate from those of any other Person; (ii) maintain its assets in such a
manner that it is not more costly or difficult to segregate, identify or ascertain such assets; (iii) hold regular meetings of its board of directors, shareholders, partners or members, as the case may be, and observe all other corporate,
partnership or limited liability company, as the case may be, formalities; (iv) hold itself out to creditors and the public as a legal entity separate and distinct from any other entity; (v) prepare separate tax returns and financial
statements, or if part of a consolidated group, then it will be shown as a separate member of such group; (vi) transact all business with its Affiliates on an arm’s-length basis and pursuant to enforceable agreements; (vii) conduct
business in its name and use separate stationery, invoices and checks; (viii) not commingle its assets or funds with those of any other Person; and (ix) not assume, guarantee or pay the debts or obligations of any other Person. 

 

 58 

 5.1.5 Consents. If Borrower is a corporation, the board of directors
of such Person may not take any action requiring the unanimous affirmative vote of 100% of the members of the board of directors unless all of the directors, including the Independent Directors, shall have participated in such vote if such vote
relates to a Material Action (as such term is defined in the Borrower’s organizational documents). If Borrower is a limited liability company, (a) if such Person is managed by a board of managers, the board of managers of such Person may
not take any action requiring the unanimous affirmative vote of 100% of the members of the board of managers unless all of the managers, including the Independent Managers, shall have participated in such vote if such vote relates to a Material
Action (as such term is defined in the Borrower’s organizational documents), (b) if such Person is not managed by a board of managers, the members of such Person may not take any action requiring the affirmative vote of 100% of the members
of such Person unless all of the members, including the Independent Members, shall have participated in such vote if such vote relates to a Material Action (as such term is defined in the Borrower’s organizational documents). An affirmative
vote of 100% of the directors, board of managers or members, as applicable, including without limitation the Independent Directors, of Borrower shall be required to (i) file a bankruptcy or insolvency petition or otherwise institute insolvency
proceedings or to authorize Borrower to do so or (ii) file an involuntary bankruptcy petition against any Close Affiliate. Furthermore, Borrower’s formation documents shall expressly state that for so long as the Loan is outstanding,
Borrower shall not be permitted to (i) dissolve, liquidate, consolidate, merge or sell all or substantially all of Borrower’s assets other than in connection with the repayment of the Loan or (ii) engage in any other business activity
and such restrictions shall not be modified or violated for so long as the Loan is outstanding. 
 5.1.6 Access to
Property. Borrower shall permit agents, representatives and employees of Lender and the Rating Agencies to inspect the Property or any part thereof during normal business hours on Business Days upon reasonable advance
notice. 
 5.1.7 Notice of Default. Borrower shall promptly advise Lender (a) of any event or
condition that has or is likely to have a Material Adverse Effect and (b) of the occurrence of any Default or Event of Default of which Borrower has knowledge. 
 5.1.8 Cooperate in Legal Proceedings. Borrower shall cooperate fully with Lender with respect to any proceedings before any court, board or other Governmental Authority which would
reasonably be expected to affect in any material adverse way the rights of Lender hereunder or under any of the other Loan Documents and, in connection therewith, permit Lender, at its election, to participate in any such proceedings which may have
a Material Adverse Effect. 
 5.1.9 Perform Loan Documents. Borrower shall observe, perform and satisfy
all the terms, provisions, covenants and conditions of, and shall pay when due all costs, fees and expenses to the extent required, under the Loan Documents executed and delivered by, or applicable to, Borrower. 
  

 59 

 5.1.10 Insurance. (a) Borrower shall cooperate with Lender in
obtaining for Lender the benefits of any Proceeds lawfully or equitably payable in connection with the Property, and Lender shall be reimbursed for any expenses incurred in connection therewith (including reasonable attorneys’ fees and
disbursements) out of such Proceeds. 
 (b) Borrower shall comply with all Insurance Requirements and shall not bring or keep or permit to be
brought or kept any article upon any of the Property or cause or permit any condition to exist thereon which would be prohibited by any Insurance Requirement, or would invalidate insurance coverage required hereunder to be maintained by Borrower on
or with respect to any part of the Property pursuant to Section 6.1. 
 5.1.11 Further Assurances; Separate
Notes. (a) Borrower shall execute and acknowledge (or cause to be executed and acknowledged) and deliver to Lender all documents, and take all actions, reasonably required by Lender from time to time to confirm the
rights created or now or hereafter intended to be created under this Agreement and the other Loan Documents and any security interest created or purported to be created thereunder, to protect and further the validity, priority and enforceability of
this Agreement and the other Loan Documents, to subject to the Loan Documents any property of Borrower intended by the terms of any one or more of the Loan Documents to be encumbered by the Loan Documents, or otherwise carry out the purposes of the
Loan Documents and the transactions contemplated thereunder. At any time after the Closing Date, Borrower agrees that it shall, upon request, reasonably cooperate with Lender in connection with any request by Lender to reallocate the LIBOR Margin
among the Notes or to sever the Note into two (2) or more separate substitute or component notes in an aggregate principal amount equal to the Principal Amount and to reapportion the Loan among such separate substitute notes, including, without
limitation, by executing and delivering to Lender new substitute or component notes to replace the Note, amendments to or replacements of existing Loan Documents to reflect such severance and/or Opinions of Counsel with respect to such substitute or
component notes, amendments and/or replacements, provided that Borrower shall bear no costs or expenses in connection therewith (other than administrative costs and expenses of Borrower and legal fees of counsel to the Borrower and Guarantor), and
the holders of such substitute or component notes shall designate a lead lender or agent for such holders to whom Borrower may direct all communications with respect to the Loan. Any such substitute or component notes may have varying principal
amounts and economic terms, provided, however, that (i) the maturity date of any such substitute or component notes shall be the same as the scheduled Maturity Date of the Note immediately prior to the issuance of such substitute
notes, (ii) the substitute notes shall provide for amortization of the Principal Amount on a weighted average basis over a period not less than the amortization period provided under the Note, if any, immediately prior to the issuance of the
substitute notes, (iii) the weighted average LIBOR Margin for the term of the substitute notes shall not exceed the LIBOR Margin under the Note immediately prior to the issuance of such substitute notes; and (iv) the economics of the Loan,
taken as a whole, shall not change in a manner which is adverse to Borrower. Upon the occurrence and during the continuance of an Event of Default, Lender may apply payment of all sums due under such substitute notes in such order and priority as
Lender shall elect in its sole and absolute discretion. 
 (b) No Securitization shall occur prior to March 1, 2007. Borrower further
agrees that if, in connection with the Securitization, it is determined by the Rating Agencies that 
  

 60 

 a portion of the Securitization would not receive an “investment grade” rating unless the principal amount of
the Loan were to be decreased and, as a result, the principal amount of the Loan is decreased, then (i) the Borrower shall take all actions as are necessary to effect the “resizing”, including the reallocation of the LIBOR Margin of
the Mezzanine Loan and the Loan, (ii) the Borrower shall cause the Mezzanine Borrower to comply with its agreements to effect a “resizing”, and (iii) Lender shall on the date of the “resizing” of the Loan lend to the
Mezzanine Borrower (by way of a reallocation of the principal amount of the Loan and the Mezzanine Loan) such additional amount equal to the amount of the principal reduction of the Loan (without Prepayment Fee or penalty) provided that Borrower and
the Mezzanine Borrower execute and deliver any and all necessary amendments or modifications to the Loan Documents and the Mezzanine Loan Documents. In addition, Borrower and Lender agree that if, in connection with the Securitization, it is
determined by the Rating Agencies that, if the principal amount of the Mezzanine Loan were to be decreased and, as a result the principal amount of the Loan were increased, more “investment grade” rated securities could be issued, then
(i) if “resizing” to decrease the size of the Mezzanine Loan and increase the size of the Loan is provided for in the Mezzanine Loan Documents, each of them shall take all actions provided for in the documentation for the Loan as are
necessary to effect the “resizing” of the Loan and the Mezzanine Loan, (ii) Borrower shall cause the Mezzanine Borrower to comply with its agreements to effect a “resizing” and (iii) Lender shall on the date of the
“resizing” of the Loan lend to the Borrower (by way of a reallocation of the principal amount of the Loan and the Mezzanine Loan) an additional amount equal to the amount of principal reduction of the Mezzanine Loan, provided that Borrower
and the Mezzanine Borrower execute and deliver any and all necessary modifications to the Loan Documents and Mezzanine Loan Documents. In connection with the foregoing, Borrower agrees, at Lender’s sole cost and expense other than with respect
to (1) Borrower’s, Prime Lessee’s, Operating Lessee’s, the Guarantor’s, each Ultimate Equity Owners’ and their Affiliate’s counsel fees and (2) if the principal amount of the Loan is increased, an endorsement
to the Title Policy reflecting an increase in the insured amount thereunder which shall be at Borrower’s sole cost and expense, to execute and deliver such documents and other agreements reasonably required by Mezzanine Lender and/or Lender to
“re-size” the Loan and the Mezzanine Loan, including, without limitation, an amendment to this Agreement, the Note, the Security Instrument and the other Loan Documents. Borrower agrees to reimburse Lender for all costs and expenses
(including, without limitation, reasonable attorneys’ fees and expenses) incurred by Lender in connection with any “resizing” of the Loan. Notwithstanding the foregoing, Lender agrees that any “resizing” of the Loan and the
Mezzanine Loan shall not change the economics of the Loan and the Mezzanine Loan taken as a whole in a manner which is adverse to Borrower . 
 (c) In addition, Borrower shall, at Borrower’s sole cost and expense: 
 (i) furnish to Lender, to the extent not otherwise
already furnished to Lender and reasonably acceptable to Lender, all instruments, documents, boundary surveys, footing or foundation surveys, certificates, plans and specifications, appraisals, title and other insurance reports and agreements, and
each and every other document, certificate, agreement and instrument required to be furnished by Borrower pursuant to the terms of the Loan Documents; 
 (ii) execute and deliver, from time to time, such further instruments (including, without limitation, delivery of any financing statements under the UCC) as may be reasonably requested by Lender to confirm the Lien of
the Security Instrument on any Building Equipment, Operating Asset or any Intangible; 
  

 61 

 (iii) execute and deliver to Lender such documents, instruments, certificates, assignments and other
writings, and do such other acts necessary to evidence, preserve and/or protect the collateral at any time securing or intended to secure the obligations of Borrower under the Loan Documents, as Lender may reasonably require; 
 (iv) do and execute all and such further lawful and reasonable acts, conveyances and assurances for the carrying out of the terms and conditions of this
Agreement and the other Loan Documents, as Lender shall reasonably require from time to time; and 
 (v) cause its New York counsel to
re-issue the New York opinion delivered on the date hereof (in identical form and without updating) in favor of a trustee in a Securitization if such trustee is different that the trustee currently listed in such opinion. 
 5.1.12 Mortgage Taxes. Borrower shall pay all taxes, charges, filing, registration and recording fees, excises and
levies payable with respect to the Note or the Liens created or secured by the Loan Documents, other than income, franchise and doing business taxes imposed on Lender. 
 5.1.13 Operation. Borrower shall, and shall cause Manager to, (i) promptly perform and/or observe all of the covenants and agreements required to be performed and observed by it
under the Management Agreement and do all things necessary to preserve and to keep unimpaired its material rights thereunder; (ii) promptly notify Lender of any “event of default” under the Management Agreement of which it is aware;
(iii) enforce in a commercially reasonable manner the performance and observance of all of the covenants and agreements required to be performed and/or observed by the Manager under the Management Agreement. 
 5.1.14 Business and Operations. Borrower shall continue to engage in the businesses presently conducted by it as and
to the extent the same are necessary for the ownership, maintenance, management and operation of the Property. Borrower shall qualify to do business and shall remain in good standing under the laws of the State in which the Property is located and
as and to the extent required for the ownership, maintenance, management and operation of the Property. 
 5.1.15 Title to the
Property. Borrower shall warrant and defend (a) its title to the Property and every part thereof, subject only to Liens permitted hereunder (including Permitted Encumbrances) and (b) the validity and priority
of the Liens of the Security Instrument, the Assignment of Leases and this Agreement on the Property, subject only to Liens permitted hereunder (including Permitted Encumbrances), in each case against the claims of all Persons whomsoever. Borrower
shall reimburse Lender for any losses, costs, damages or expenses (including reasonable attorneys’ fees and court costs) incurred by Lender if an interest in the Property, other than as permitted hereunder, is claimed by another Person.

 5.1.16 Costs of Enforcement. In the event (a) that this Agreement or the Security Instrument is
foreclosed upon in whole or in part or that this Agreement or the Security 
  

 62 

 Instrument is put into the hands of an attorney for collection, suit, action or foreclosure, (b) of the foreclosure
of any security agreement prior to or subsequent to this Agreement in which proceeding Lender is made a party, or a mortgage prior to or subsequent to the Security Instrument in which proceeding Lender is made a party, or (c) of the bankruptcy,
insolvency, rehabilitation or other similar proceeding in respect of Borrower or any of its constituent Persons or an assignment by Borrower or any of its constituent Persons for the benefit of its creditors, Borrower, its 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 or Borrower in connection therewith and in connection with any appellate proceeding or
post-judgment action involved therein, together with all required service or use taxes. 
 5.1.17 Estoppel
Statement. (a) Borrower shall, from time to time, upon thirty (30) days’ prior written request from Lender, execute, acknowledge and deliver to the Lender, an Officer’s Certificate, stating that this
Agreement and the other Loan Documents are unmodified and in full force and effect (or, if there have been modifications, that this Agreement and the other Loan Documents are in full force and effect as modified and setting forth such
modifications), stating the amount of accrued and unpaid interest and the outstanding principal amount of the Note and containing such other information, qualified to the Best of Borrower’s Knowledge, with respect to the Borrower, the Property
and the Loan as Lender shall reasonably request. The estoppel certificate shall also state either that no Default exists hereunder or, if any Default shall exist hereunder, specify such Default and the steps being taken to cure such Default.

 (b) Borrower shall use commercially reasonable efforts to deliver to Lender, within thirty (30) days of Lender’s request, tenant
estoppel certificates from each Tenant under any Material Lease entered into after the Closing Date in substantially the form and substance of the estoppel certificate set forth in Exhibit G provided that Borrower shall not be
required to deliver such certificates more frequently than one time in any calendar year; provided, however, that there shall be no limit on the number of times Borrower may be required to obtain such certificates if a Default
hereunder or under any of the Loan Documents has occurred and is continuing. 
 5.1.18 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. 
 5.1.19 No Joint Assessment. Borrower shall not suffer, permit or initiate the joint assessment of the Property (a) with any other real property constituting a tax lot separate from the Property and
(b) which constitutes real property with any portion of the Property which may be deemed to constitute personal property, or any other procedure whereby the lien of any taxes which may be levied against such personal property shall be assessed
or levied or charged to such real property portion of the Property. 
 5.1.20 No Further Encumbrances.
Borrower shall do, or cause to be done, all things necessary to keep and protect the Property and all portions thereof unencumbered from any Liens, easements or agreements granting rights in or restricting the use or development of the Property,
except for (a) Permitted Encumbrances, (b) Liens permitted pursuant to the Loan Documents, (c) Liens for Impositions prior to the imposition of any interest, charges or expenses for the non-payment thereof and (d) any Liens
permitted pursuant to Leases. 
  

 63 

 5.1.21 Leases. Borrower shall promptly after receipt thereof deliver
to Lender a copy of any notice received with respect to any Material Lease claiming that Borrower is in default in the performance or observance of any of the material terms, covenants or conditions of any of the Material Leases, if such default is
reasonably likely to have a Material Adverse Effect. 
 5.1.22 Article 8 “Opt In” Language.
Each organizational document of Borrower, Mezzanine Borrower and each of the other entities identified in Section 4.1.29 hereof shall be modified to include the language set forth on Exhibit R. 
 5.1.23 FF&E. Borrower shall cause Manager to reserve for FF&E on a monthly basis in accordance with the
Management Agreement, such reserves to be maintained in the Manager FF&E Reserve Account. 
 5.1.24 Qualified
Intermediary. Prior to consummation of the Exchange, Qualified Intermediary shall not pledge its indirect interests in Borrower, except as permitted by the terms of this Agreement and the Exchange Documents. 
 5.1.25 TIC. (a) Borrower will: (i) promptly perform and observe all of the covenants, agreements, obligations and conditions required
to be performed and observed by Borrower under the TIC Agreement, and do all things necessary to preserve and keep unimpaired its rights thereunder; (ii) promptly notify Lender in writing of the receipt by any Co- Borrower of any notice (other
than notices customarily sent on a regular periodic basis) from any party under the TIC Agreement and of any notice noting or claiming any default by any party to the TIC Agreement in the performance or observance of any of the terms, covenants, or
conditions on the part of Borrower to be performed or observed under the TIC Agreement; (iii) promptly notify Lender in writing of the receipt by any party to the TIC Agreement of any notice from any party to the TIC Agreement of any alleged
termination of the TIC Agreement and promptly cause a copy of each such notice to be delivered to Lender; and (iv) promptly notify Lender in writing of any request made by any party to the TIC Agreement to any other party thereto for
arbitration or appraisal proceedings pursuant to the TIC Agreement, and of the institution of any arbitration or appraisal proceedings and promptly deliver to Lender a copy of the determination of the arbitrators or appraisers in each such
proceeding. Upon the written demand of Lender, Borrower will promptly deliver to Lender a certificate stating that the TIC Agreement is in full force and effect, is unmodified (or identifying any modifications), that no notice of termination thereof
has been served on Borrower and stating whether or not there are any defaults thereunder and specifying the nature of such defaults, if any. Borrower shall deliver to Lender such certificate within ten (10) days after Lender’s demand
therefor. Each of the Co-Borrowers, as owners in indivision, shall at all times share one centralized address for notice and one centralized address for service of process, which common service of process address and notice address are as set forth
in Section 19.3 and Section 19.6 hereof (and which common service of process address and notice address may be changed by Borrower from time to time in accordance with the provisions of Section 19.3 and
Section 19.6 respectively). 
  

 64 

 (b) Borrower will not surrender the TIC Agreement or its estate and interest therein, nor terminate or
cancel the TIC Agreement; and (except for modifications or amendments made in connection with permitted Transfers under Article VIII solely to reflect such transfers of interests) Borrower will not, without the prior written consent of
Lender, modify, change, supplement, alter or amend the TIC Agreement (except for modifications or amendments made in connection with permitted Transfers under Article VIII solely to reflect such transfers of interests), either orally or in
writing, and as further security for the repayment of the Debt and for the performance of the covenants, agreements, obligations and conditions herein and in the TIC Agreement contained, each Co-Borrower hereby pledges and assigns to Lender all of
its rights, privileges and prerogatives as a party to the TIC Agreement, including, without limitation, any and all rights of first refusal (including those which arise under Section 363(i) of the Bankruptcy Code), any options to purchase and
similar rights (provided, however, the foregoing shall not be deemed to limit or restrict any Co-Borrower’s right to exercise any such rights or options in order to effect transfers otherwise permitted by Article VIII) as well as rights to
terminate, cancel, modify, change, supplement, alter or amend the TIC Agreement (except as provided above), and any such termination, cancellation, modification, change, supplement, alteration or amendment of the TIC Agreement (except as provided
above), without the prior written consent thereto by Lender, shall be void and of no force and effect. Without limiting the generality of the foregoing, Borrower will not reject the TIC Agreement pursuant to Section 365(a) of the Bankruptcy
Code or any successor law, or allow the TIC Agreement to be deemed rejected by inaction and lapse of time, and will not elect to treat the TIC Agreement as terminated by any party to the TIC Agreement’s rejection of such TIC Agreement pursuant
to Section 365(h)(1) of the Bankruptcy Code or any successor law, and as further security for the repayment of the Indebtedness and for the performance of the covenants, agreements, obligations and conditions herein and in the TIC Agreement
contained, Borrower hereby assigns to Lender all of the rights, privileges and prerogatives of Borrower and any of Borrower’s bankruptcy trustee to deal with the TIC Agreement, which right may arise as a result of the commencement of a
proceeding under the federal bankruptcy laws by or against any party under the TIC Agreement, including, without limitation, the right to assume or reject, or to compel the assumption or rejection of the TIC Agreement pursuant to Section 365(a)
of the Bankruptcy Code or any successor law, the right to seek and obtain extensions of time to assume or reject the TIC Agreement, the right to elect whether to treat the TIC Agreement as terminated by any party’s rejection of such TIC
Agreement or to remain in possession of the Property and offset damages pursuant to Section 365(b)(1) of the Bankruptcy Code or any successor law; and any exercise of such rights, privileges or prerogatives by Borrower’s bankruptcy trustee
without the prior written consent thereto by Lender shall be void and of no force and effect. No release or forbearance of any of Borrower’s obligations under the TIC Agreement, whether pursuant to the TIC Agreement or otherwise, shall release
either party from any of its obligations under this Agreement. Borrower hereby expressly grants to Lender, and agrees that Lender shall have, the absolute and immediate right (notwithstanding any cure periods applicable to acceleration of the Note
or exercise of remedies provided for herein) to enter in and upon the Property or any part thereof, to such extent and as often as Lender, in its sole discretion, deems necessary or desirable in order to prevent or to cure any such default by any
party to the TIC Agreement. Lender may immediately pay and expend such sums of money (notwithstanding any cure periods applicable to acceleration of the Note or exercise of remedies provided for herein) as Lender, in its sole discretion, deems
necessary to prevent or cure any such default by any party to the TIC 
  

 65 

 Agreement, and Borrower hereby agrees to pay to Lender, upon not less than ten (10) business days’ notice, all
such sums so paid and expended by Lender, together with interest thereon from the date of each such payment at the Default Rate. All sums so paid and expended by Lender, and the interest thereon, shall be added to and be secured by the Lien of the
Loan Documents. Each Co-Borrower, as owners in indivision, for themselves and for their respective successors and assigns hereby (w) so long as any portion of the Indebtedness is outstanding, waive and relinquish its rights to partition, in
kind or by licitation, the Property, which they own and hold in common, (x) subordinates in all respects the TIC Agreement and all of its rights and remedies, indemnity or otherwise, under the TIC Agreement to the Lien of the Security
Instrument and the other Loan Documents and to all of Lender’s rights under the Security Instrument and the other Documents, and (y) subordinates in all respects any options to purchase or rights of first refusal and any other similar
rights with respect to another Co-Borrower’s interest in the Property to the Lien of the Security Instrument and the other Loan Documents (including without limitation, the transfer restrictions contained herein and therein) and to all of
Lender’s rights under the Security Instrument and the other Loan Documents (provided, however, the foregoing shall not be deemed to limit or restrict any Co-Borrower’s right to exercise any such rights or options in order to effect
transfers otherwise permitted by Article VIII hereof). 
 5.1.26 Fountain. Within six
(6) months of the date of this Agreement, Borrower shall provide Lender with all plans, drawings, cost estimations and all other documentation as may be required by Lender (acting reasonably) relating to all works proposed by Borrower and/or
Operating Lessee in respect of the Fountain. 
 Section 5.2 Negative Covenants. From the Closing Date
until payment and performance in full of all Obligations of Borrower under the Loan Documents or the earlier release of the Lien of this Agreement or the Security Instrument in accordance with the terms of this Agreement and the other Loan
Documents, Borrower hereby covenants and agrees with Lender that it will not do (and will not permit Prime Lessee or Operating Lessee to do), or permit to be done, directly or indirectly, any of the following (and in such connection, references in
this Article V to Borrower shall alternatively mean Prime Lessee or Operating Lessee, as the context may require): 
 5.2.1
Incur Debt. Incur, create or assume (or permit Prime Lessee or Operating Lessee to incur, create or assume) any Indebtedness other than Permitted Debt or Transfer all or any part of the Property or any interest
therein, except as permitted in the Loan Documents; 
 5.2.2 Encumbrances. Other than in connection with
a Permitted Mezzanine Transfer and except as permitted pursuant to Article VIII, incur, create or assume or permit the incurrence, creation or assumption of any Indebtedness other than Permitted Debt secured by an interest in Borrower, Prime
Lessee, Operating Lessee or Mezzanine Borrower and shall not Transfer (other than the Prime Lease) or permit the Transfer of any interest in such Persons; 
 5.2.3 Engage in Different Business. Engage, or permit Prime Lessee or Operating Lessee to engage, directly or indirectly, in any business other than that of entering into this
Agreement and the other Loan Documents to which Borrower is a party and the use, ownership, management, leasing, renovation, financing, development, operation and maintenance of the Property and activities related thereto; 
  

 66 

 5.2.4 Make Advances. Make or permit Prime Lessee or Operating Lessee
to make advances or make loans to any Person, or hold any investments, except as expressly permitted pursuant to the terms of this Agreement or any other Loan Document; 
 5.2.5 Partition. Partition or permit the partition of the Property, except as permitted hereunder; 
 5.2.6 Commingle. Commingle its assets or permit Prime Lessee or Operating Lessee to commingle its assets with the assets of any of Borrower’s, Prime Lessee’s and/or
Operating Lessee’s Affiliates except as permitted by the definition of “Single Purpose Entity”; 
 5.2.7 Guarantee
Obligations. Guarantee or permit Prime Lessee’s or Operating Lessee to guarantee any obligations of any Person; 
 5.2.8 Transfer Assets. Transfer or permit Prime Lessee or Operating Lessee to transfer any asset other than in the ordinary course of business or Transfer any interest in the Property except as may be
permitted hereby or in the other Loan Documents; 
 5.2.9 Amend Organizational Documents. Amend or modify
any of its, Prime Lessee’s or Operating Lessee’s organizational documents without Lender’s consent, other than in connection with any Transfer permitted pursuant to Article VIII or to reflect any change in capital accounts,
contributions, distributions, allocations or other provisions that do not and could not reasonably be expected to have a Material Adverse Effect and provided that each such Person remain a Single Purpose Entity; 
 5.2.10 Dissolve. Dissolve, wind-up, terminate, liquidate, merge with or consolidate into another Person, except
following or simultaneously with a repayment of the Loan in full or as expressly permitted pursuant to this Agreement; 
 5.2.11
Bankruptcy. (i) File (or permit Prime Lessee or Operating Lessee to file) a bankruptcy or insolvency petition or otherwise institute insolvency proceedings, (ii) dissolve, liquidate, consolidate, merge or sell
all or substantially all of Borrower’s assets other than in connection with the repayment of the Loan, (iii) engage (or permit Prime Lessee or Operating Lessee to engage) in any other business activity or (iv) file or solicit the
filing (or permit Prime Lessee or Operating Lessee to file or solicit the filing) of an involuntary bankruptcy petition against Borrower, Prime Lessee or Operating Lessee, or any Close Affiliate of any such Person without obtaining the prior consent
of all of the directors of Borrower, including, without limitation, the Independent Directors; 
 5.2.12
ERISA. Engage in any activity that would subject it to regulation under ERISA or qualify it as an “employee benefit plan” (within the meaning of Section 3(3) of ERISA) to which ERISA applies and
Borrower’s assets do not and will not constitute plan assets within the meaning of 29 C.F.R. Section 2510.3-101; 
  

 67 

 5.2.13 Distributions. From and after the occurrence and during the
continuance of an Event of Default, make (or permit Prime Lessee or Operating Lessee to make) any distributions to or for the benefit of any of Borrower’s, Prime Lessee’s or Operating Lessee’s shareholders, partners or members, as the
case may be, or its or their Affiliates; 
 5.2.14 Manager. (a) Borrower represents, warrants and
covenants on behalf of itself, Prime Lessee and Operating Lessee that the Property shall at all times be managed by an Acceptable Manager pursuant to an Acceptable Management Agreement. 
 (b) Notwithstanding any provision to the contrary contained herein or in the other Loan Documents, except as provided in this Section 5.2.14
or in connection with a release made in accordance with Section 2.3.4, Borrower may not amend, modify, supplement, alter or waive any right under the Management Agreement (or permit any such action) without the receipt of a Rating Agency
Confirmation. Without the receipt of a Rating Agency Confirmation, Borrower shall be permitted to make any nonmaterial modification, change, supplement, alteration or amendment to the Management Agreement and to waive any nonmaterial rights
thereunder, provided that no such modification, change, supplement, alteration, amendment or waiver shall affect the cash management procedures set forth in the Management Agreement or the Loan Documents, decrease the cash flow of the Property,
adversely affect the marketability of the Property, change the definitions of “default” or “event of default,” change the definitions of “operating expense” or words of similar meaning to add additional items to such
definitions, change any definitions or provisions so as to reduce the payments due the Borrower thereunder, change the timing of remittances to the Borrower thereunder, increase or decrease reserve requirements, change the term of the Management
Agreement or increase any Management Fees payable under the Management Agreement. 
 (c) Borrower may enter into a new Management Agreement
with an Acceptable Manager upon receipt of a Rating Agency Confirmation with respect to the Management Agreement and delivery of an acceptable Non-Consolidation Opinion covering such replacement manager if such Person (i) is not covered by the
Non-Consolidation Opinion or an Additional Non-Consolidation Opinion, and (ii) is an Affiliate of Borrower. 
 5.2.15 Management
Fee. Borrower may not, without the prior written consent of Lender (which may be withheld in its sole and absolute discretion) take or permit to be taken any action that would increase the percentage amount of the
Management Fee, or add a new type of fee (other than a “Group Services Expense” as permitted by Section 5.2.14 above) payable to Manager relating to the Property, including, without limitation, the Management Fee. 

5.2.16 Operating Lease. Without the prior written consent of Lender surrender or terminate the Operating Lease
unless the other party thereto is in material default and the termination of such agreement would be commercially reasonable. 
 5.2.17
Modify Account Agreement. Without the prior consent of Lender, which shall not be unreasonably withheld, delayed or conditioned (and if a Securitization shall have occurred, a Rating Agency Confirmation obtained by
Borrower), Borrower shall not execute any modification to the Account Agreement; 
  

 68 

 5.2.18 Zoning Reclassification. Except as contemplated by
Section 2.3.4, without the prior written consent of Lender, which consent shall not be unreasonably withheld, (a) initiate or consent to any zoning reclassification of any portion of the Property, (b) seek any variance under
any existing zoning ordinance that would result in the use of the Property becoming a non-conforming use under any zoning ordinance or any other applicable land use law, rule or regulation, or (c) allow any portion of the Property to be used in
any manner that could result in the use of the Property becoming a non-conforming use under any zoning ordinance or any other applicable land use law, rule or regulation; 
 5.2.19 TIC Agreement. Except for transfers and other actions permitted by Article VIII, the Co-Borrowers will not terminate,
modify, change, supplement, alter, amend or cancel the TIC Agreement without the Lender’s prior written consent. 
 5.2.20 Debt
Cancellation. Cancel or otherwise forgive or release any material claim or debt owed to it by any Person, except for adequate consideration or in the ordinary course of its business and except for termination of a Lease
as permitted by Section 8.8; 
 5.2.21 Misapplication of Funds. Distribute any revenue from
the Property or any Proceeds in violation of the provisions of this Agreement, fail to remit amounts to the Collection Accounts or Holding Account, as applicable, as required by Section 3.1, misappropriate any security deposit or portion
thereof or apply the proceeds of the Loan in violation of Section 2.1.4; or 
 5.2.22 Single-Purpose
Entity. Fail to be (or permit Prime Lessee or Operating Lessee) to fail to be a Single-Purpose Entity or take or suffer any action or inaction the result of which would be to cause such Person to cease to be a
Single-Purpose Entity. 
 Section 5.3 Ground Lease Provisions. 
 Notwithstanding any other provision of this Agreement or any other Loan Document to the contrary, Borrower hereby warrants, covenants, represents and
agrees as to the Ground Lease as follows: 
 (a) The Ground Lease. Borrower shall (i) pay all rents, additional rents and
other sums required to be paid by Borrower as tenant under and pursuant to the provisions of the Ground Lease as and when such rent or other charge is payable, (ii) diligently perform and observe all of the terms, covenants and conditions of
the Ground Lease on the part of Borrower, as tenant thereunder, to be performed and observed at least three (3) days prior to the expiration of any applicable grace period therein provided, and (iii) promptly notify Lender of the giving of
any written notice by the lessor under the Ground Lease to Borrower of any default by Borrower in the performance or observance of any of the terms, covenants or conditions of the Ground Lease on the part of Borrower, as tenant thereunder, to be
performed or observed and deliver to Lender a true copy of each such notice. Borrower shall not, without the prior consent of Lender, surrender the leasehold estate created by any Ground Lease or terminate or cancel the Ground Lease or modify,
change, supplement, alter or amend the Ground Lease, either orally or in writing, and Borrower hereby assigns to Lender, as further security for the payment of the Indebtedness and for the performance and observance of the terms, covenants and
conditions of 
  

 69 

 the Security Agreement and this Agreement, all of the rights, privileges and prerogatives of Borrower, as tenant under
the Ground Lease, to surrender the leasehold estate created by the Ground Lease or to terminate, cancel, modify, change, supplement, alter or amend the Ground Lease and any such surrender of the leasehold estate created by the Ground Lease or
termination, cancellation, modification, change, supplement, alteration or amendment of the Ground Lease without the prior consent of Lender shall be void and of no force and effect. If Borrower shall default in the performance or observance of any
term, covenant or condition of the Ground Lease on the part of Borrower, as tenant thereunder, to be performed or observed, then, without limiting the generality of the other provisions of the Security Agreement and this Agreement and without
waiving or releasing Borrower from any of its obligations hereunder, Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any act or take any action as may be appropriate to cause all of the terms, covenants
and conditions of the Ground Lease on the part of Borrower, as tenant thereunder, to be performed or observed or to be promptly performed or observed on behalf of Borrower, to the end that the rights of Borrower in, to and under the Ground Lease
shall be kept unimpaired as a result thereof and free from default, even though the existence of such event of default or the nature thereof be questioned or denied by Borrower or by any party on behalf of Borrower. If Lender shall make any payment
or perform any act or take action in accordance with the preceding sentence, Lender will give prior written notice thereof to Borrower before the making of any such payment, the performance of any such act, or the taking of any such action. In any
such event, subject to the rights of tenants, subtenants and other occupants under the leases, Lender and any person designated as Lender’s agent by Lender shall have, and are hereby granted, the right to enter upon the Ground Lease Property at
any reasonable time, on reasonable notice and from time to time for the purpose of taking any such action. Lender may pay and expend such sums of money as Lender reasonably deems necessary for any such purpose and upon so doing shall be subrogated
to any and all rights of the landlord under the Ground Lease. Borrower hereby agrees to pay to Lender within five (5) days after demand, all such sums so paid and expended by Lender, together with interest thereon from the day of such payment
at the Default Rate. All sums so paid and expended by Lender and the interest thereon shall be secured by the legal operation and effect of the Security Agreement. If the lessor under any Ground Lease shall deliver to Lender a copy of any notice of
default sent by said lessor to Borrower, as tenant under the Ground Lease, such notice shall constitute full protection to Lender for any action taken or omitted to be taken by Lender, in good faith, in reliance thereon. Borrower shall exercise each
individual option, if any, to extend or renew the term of the Ground Lease upon demand by Lender made at any time within one (1) year of the last day upon which any such option may be exercised, and if Borrower shall fail to do so, Borrower
hereby expressly authorizes and appoints Lender its attorney-in-fact to exercise any such option in the name of and upon behalf of Borrower, which power of attorney shall be irrevocable and shall be deemed to be coupled with an interest. Lender
shall not require Borrower to exercise such option to extend or renew the term of the Ground Lease unless such option to extend or renew is, by the terms of the Ground Lease, exercisable within two (2) years of the Maturity Date. Borrower will
not subordinate or consent to the subordination of any Ground Lease to any mortgage, security deed, lease or other interest on or in the landlord’s interest in all or any part of the Ground Lease Property, unless, in each such case, the written
consent of Lender shall have been first had and obtained, which approval shall not unreasonably be withheld, it being acknowledged by Lender that the Ground Lease in the form in effect as of the date hereof provides for such subordination.

  

 70 

 (b) Subleases. Each Material Lease of any portion of the Ground Lease Property subject to
the Ground Lease hereafter made and each renewal of any existing such Lease shall provide that, (i) in the event of the termination of the Ground Lease, the lease shall not terminate or be terminable by the tenant; (ii) in the event of any
action for the foreclosure of the Security Agreement, the lease shall not terminate or be terminable by the subtenant by reason of the termination of the Ground Lease unless the tenant is specifically named and joined in any such action and unless a
judgment is obtained therein against the tenant; and (iii) in the event that the Ground Lease is terminated as aforesaid, the tenant shall attorn to the landlord under the Ground Lease or to the purchaser at the sale of the Ground Lease
Property on such foreclosure, as the case may be. 
 (c) No Merger of Fee and Leasehold Estates; Releases. So long as any
portion of the Indebtedness shall remain unpaid, unless Lender shall otherwise consent, the fee title to the Ground Lease Property and the leasehold estate therein created pursuant to the provisions of the Ground Lease shall not merge but shall
always be kept separate and distinct, notwithstanding the union of such estates in Borrower, Lender, or in any other person by purchase, operation of law or otherwise. 
 (d) Borrower’s Acquisition of Fee Estate. In the event that Borrower, so long as any portion of the Indebtedness remains unpaid, shall be the owner and holder of the fee title to the Ground Lease
Property subject to the Ground Lease, the Lien of the Security Agreement shall be spread to cover Borrower’s fee title to the Ground Lease Property and said fee title shall be deemed to be included in the Ground Lease Property. Borrower agrees,
at its sole cost and expense, including, without limitation, Lender’s reasonable attorneys’ fees, to (i) execute any and all documents or instruments necessary to subject its fee title to the Ground Lease Property to the lien of the
Security Agreement; and (ii) provide a title insurance policy which shall insure that the lien of the Security Agreement is a first lien (subject to Permitted Encumbrances) on Borrower’s fee title to the Ground Lease Property.
Notwithstanding the foregoing, if the Ground Lease is for any reason whatsoever terminated prior to the natural expiration of its term, and if, pursuant to any provisions of the Ground Lease or otherwise, Lender or its designee shall acquire from
the landlord thereunder another lease of the Ground Lease Property, Borrower shall have no right, title or interest in or to such other lease or the leasehold estate created thereby. 
 (e) Rejection of the Ground Lease. If the Ground Lease is terminated by the landlord thereunder for any reason in the event of the
rejection or disaffirmance of the Ground Lease by the landlord thereunder pursuant to the Bankruptcy Code or any other law affecting creditor’s rights, (i) Borrower, immediately after obtaining notice thereof, shall give notice thereof to
Lender, (ii) Borrower, without the prior written consent of Lender, shall not elect to treat the Ground Lease as terminated pursuant to Section 365(h) of the Bankruptcy Code or any comparable federal or state statute or law, and any
election by Borrower made without such consent shall be void and (iii) the Security Agreement and all the Lien, terms, covenants and conditions of the Security Agreement shall extend to and cover Borrower’s possessory rights under
Section 365(h) of the Bankruptcy Code and to any claim for damages due to the rejection of the Ground Lease or other termination of the Ground Lease. In addition, Borrower hereby assigns irrevocably to Lender, Borrower’s rights to treat
the Ground Lease as terminated pursuant to Section 365(h) of the Bankruptcy Code and to offset rents under the Ground Lease in 
  

 71 

 the event any case, proceeding or other action is commenced by or against the landlord under the Bankruptcy Code or any
comparable federal or state statute or law, provided that Lender shall not exercise such rights and shall permit Borrower to exercise such rights with the prior written consent of Lender, not to be unreasonably withheld or delayed, unless an Event
of Default shall have occurred and be continuing. 
 (i) Borrower hereby assigns to Lender Borrower’s right to reject the Ground Lease
under Section 365 of the Bankruptcy Code or any comparable federal or state statute or law with respect to any case, proceeding or other action commenced by or against Borrower under the Bankruptcy Code or comparable federal or state statute or
law, provided the Lender shall not exercise such right, and shall permit Borrower to exercise such right with the prior written consent of Lender, not to be unreasonably withheld or delayed, unless an Event of Default shall have occurred and be
continuing. Further, if Borrower shall desire to so reject the Ground Lease, at Lender’s request, to the extent not prohibited by the terms of the Ground Lease and applicable law, Borrower shall assign its interest in the Ground Lease to Lender
in lieu of rejecting the Ground Lease as described above, upon receipt by Borrower of written notice from Lender of such request together with Lender’s agreement to cure any existing defaults of Borrower under the Ground Lease and to provide
adequate assurance of future performance of Borrower’s obligations thereunder. 
 (ii) Borrower hereby assigns to Lender
Borrower’s right to seek an extension of the 60-day period within which Borrower must accept or reject the Ground Lease under Section 365 of the Bankruptcy Code or any comparable federal or state statute or law with respect to any case,
proceeding or other action commenced by or against Borrower under the Bankruptcy Code or comparable federal or state statute or law, provided the Lender shall not exercise such right, and shall permit Borrower to exercise such right with the prior
written consent of Lender, not to be unreasonably withheld or delayed, unless an Event of Default shall have occurred and be continuing. Further, if Borrower shall desire to so reject the Ground Lease, at Lender’s request, to the extent not
prohibited by the terms of the Ground Lease and applicable law, Borrower shall assign its interest in the Ground Lease to Lender in lieu of rejecting such Ground Lease as described above, upon receipt by Borrower of written notice from Lender of
such request together with Lender’s agreement to cure any existing defaults of Borrower under the Ground Lease and to provide adequate assurance of future performance of Borrower’s obligations thereunder. 
 (iii) Borrower hereby agrees that if the Ground Lease is terminated for any reason in the event of the rejection or disaffirmance of the Ground Lease
pursuant to the Bankruptcy Code or any other law affecting creditor’s rights, any property of Borrower not removed from the Ground Lease Property by Borrower as permitted or required by the Ground Lease, shall at the option of Lender be deemed
abandoned by Borrower, provided that Lender may remove any such property required to be removed by Borrower pursuant to the Ground Lease and all reasonable out-of-pocket costs and expenses associated with such removal shall be paid by Borrower
within five (5) days of receipt by Borrower of an invoice for such removal costs and expenses. 
  

 72 

 VI. INSURANCE; CASUALTY; CONDEMNATION; RESTORATION 
 Section 6.1 Insurance Coverage Requirements. Borrower shall, at its sole cost and expense, keep in full force and
effect insurance coverage of the types and minimum limits as follows during the term of this Agreement for the mutual benefit of Borrower and Lender: 
 6.1.1 Property Insurance. Insurance insuring against loss or damage by standard perils included within the classification “All Risks of Physical Loss”. Except as otherwise
provided in section 6.1.11, such insurance (i) shall be Replacement Cost Coverage in an amount equal to the full replacement cost of the Property or such lesser amounts approved by Lender in its sole discretion (or after a Securitization, upon
receipt of a Rating Agency Confirmation), and (ii) shall have deductibles no greater than $100,000 for insurance required hereunder. The policies of insurance carried in accordance with this paragraph shall be paid annually in advance and shall
contain a “Replacement Cost Endorsement” with a waiver of depreciation and with an “Agreed Amount Endorsement”; 
 6.1.2 Liability Insurance. Commercial general liability insurance, including broad form property damage, blanket contractual and personal injuries (including death resulting therefrom) coverages and
containing minimum limits per occurrence of $1,000,000 with a $2,000,000 general aggregate for any policy year. In addition, at least $100,000,000 excess and/or umbrella liability insurance shall be obtained and maintained for claims, including
legal liability imposed upon Borrower and all related court costs and attorneys’ fees and disbursements; 
 6.1.3 Workers’
Compensation Insurance. Worker’s compensation insurance with respect to all employees of Borrower as and to the extent required by any Governmental Authority or Legal Requirement and employer’s liability
coverage of at least $1,000,000 which is scheduled to the excess and/or umbrella liability insurance as referenced in Section 6.1.2 above; 
 6.1.4 Business Interruption Insurance. Business interruption insurance in an amount sufficient to avoid any co-insurance penalty and equal to the greater of (A) the estimated
gross revenues (minus estimated variable costs which will no longer be incurred due to the business interruption) from the operation of the Property (including (x) the total payable under the Leases and all Rents and (y) the total of all
other amounts to be received by Borrower or third parties that are the legal obligation of the Tenants), net of non-recurring expenses, for a period of up to the next succeeding eighteen (18) months (subject to adjustment for each such 18 month
period) plus a twelve (12) month extended period of indemnity, or (B) the projected Operating Expenses (including Debt Service) for the maintenance and operation of the Property for a period of up to the next succeeding eighteen
(18) months plus a twelve (12) month extended period of indemnity as the same may be reduced or increased from time to time due to changes in such Operating Expenses. The amount of such insurance shall be (a) increased from time to
time as and when the Rents increase or the estimates of (or the actual) gross revenue (minus estimated (or actual) variable costs which will no longer be incurred due to the business interruption) increases or (b) decreased from time to time to
the extent Rents or the estimates of such gross revenue or variable costs decreases; 
  

 73 

 6.1.5 Builder’s All-Risk Insurance. During any period of repair
or restoration, builder’s “all risk” insurance in amounts equal to not less than the full insurable value of the applicable Improvements and insuring against such risks (including fire and extended coverage and collapse of the
Improvements to agreed limits) as Lender may request, in form and substance acceptable to Lender; 
 6.1.6 Boiler and Machinery
Insurance. Insurance against loss or damage from explosion of steam boilers, air conditioning equipment, high pressure piping, machinery and equipment, pressure vessels or similar apparatus now or hereafter installed in any of the
Improvements and insurance against loss of occupancy or use arising from any breakdown, in such amounts as are generally available at reasonable premiums and are generally required by institutional lenders for properties comparable to the Property;

 6.1.7 Flood Insurance. Flood insurance if any part of any structure or improvement comprising the Property is
located in an area identified by the Federal Emergency Management Agency as an area federally designated a “100 year flood plain” and (a) flood insurance is generally available at reasonable premiums and in such amount as generally
required by institutional lenders for similar properties or (b) if not so available from a private carrier, from the federal government at commercially reasonable premiums to the extent available; 
 6.1.8 Terrorism Insurance. Provided that insurance coverage (“Terrorism Insurance”) relating to the acts of
terrorism is either (i) commercially available, (ii) commonly obtained by owners of commercial properties in the same geographic area as the Property and which are similar to the Property or (iii) maintained for another hotel property
in the same geographic area as the Property which is at least 51% owned directly or indirectly by Ultimate Equity Owners, Borrower shall be required to carry Terrorism Insurance throughout the term of the Loan (including any extension terms) on a
per occurrence basis in an amount equal to the Total Insurable Value, plus twelve (12) months business interruption insurance pursuant to the requirements of Section 6.1.4 above (the “Required Terrorism
Amount”), with a maximum deductible of five percent (5%) of the Required Terrorism Amount, unless a greater deductible is approved by Lender in writing in its reasonable discretion); provided, however; if Borrower
maintains a Terrorism Insurance deductible of less than five percent (5%) of the Required Terrorism Amount, the Required Terrorism Amount may be reduced by the difference between (i) five percent (5%) of the Required Terrorism Amount
and (ii) the actual amount of the Terrorism Insurance deductible. Notwithstanding the foregoing, Borrower shall at all times maintain Terrorism Insurance in an amount not less than that which can be purchased for a sum equal to $283,500,
provided that Borrower shall not be obligated to purchase more than the Required Terrorism Amount. Lender agrees that Terrorism Insurance coverage may be provided under a blanket policy that is acceptable to Lender and that such coverage may cover
foreign acts of terrorism for the Required Terrorism Amount and only $100,000,000 of Terrorism Insurance coverage with respect to domestic acts of terrorism. 
 6.1.9 Demolition and Increased Construction Costs. Coverage to compensate for the cost of demolition and the increased cost of construction for the Property; 
  

 74 

 6.1.10 Law and Ordinance Insurance. Law and ordinance insurance coverage in an
amount no less than $15,000,000; and 
 6.1.11 Other Insurance. Upon sixty (60) days’ notice, such other
reasonable types of insurance not covered in Sections 6.1.1 through 6.1.10 and in such reasonable amounts as Lender from time to time may reasonably require against such other insurable hazards (but not earthquake) which at the time
are commonly insured against for property similar to the Property located in or around the region in which the Property is located and as may be reasonably required to protect Lender’s interests. 
 6.1.12 Ratings of Insurers. Borrower shall maintain insurance coverage with one or more domestic primary insurers reasonably
acceptable to Lender, having claims-paying-ability and financial strength ratings by S&P of not less than “A-” (and its equivalent by the other Rating Agencies); provided, however, such rating requirements will deemed to
be satisfied if (A) the required insurance is provided by a syndicate of five (5) or more insurers with (i) at least sixty percent (60%) of the total coverage under such policies provided by carriers having claims-paying-ability
and financial strength ratings by S&P of not less than “A-” (and its equivalent by the other Rating Agencies), (ii) at least thirty percent (30%) of the total coverage under such policies provided by carriers having
claims-paying-ability and financial strength ratings by S&P of not less than “BBB+” (and its equivalent by the other Rating Agencies) (without duplication with the carriers having ratings by S&P of not less than “A-” (and
its equivalent by the other Rating Agencies)), and (iii) the remaining ten percent (10%) of the total coverage under policies provided by carriers having an AM Best Rating of at least “A-VIII” (without duplication with the
carriers having ratings by S&P of not less than “A-” or “BBB+” (and their equivalents by the other Rating Agencies)); or (B) the required insurance is provided by a syndicate of four (4) or fewer insurers with
(i) at least seventy-five percent (75%) of the total coverage under such policies provided by carriers having claims-paying-ability and financial strength ratings by S&P of not less than “A-” (and its equivalent by the other
Rating Agencies), (ii) at least fifteen percent (15%) of the total coverage under such policies provided by carriers having claims-paying-ability and financial strength ratings by S&P of not less than “BBB+” (and its
equivalent by the other Rating Agencies) (without duplication with the carriers having ratings by S&P of not less than “A-” (and its equivalent by the other Rating Agencies)), and (iii) the remaining ten percent (10%)of the total
coverage under policies under such policies provided by carriers having an AM Best Rating of at least “A-VIII” (without duplication with the carriers having ratings by S&P of not less than “A-” or “BBB+” (and their
equivalents by the other Rating Agencies)). Seismic Insurance required pursuant to Section 6.1.11 shall not be required to satisfy the foregoing rating requirements, provided that such Seismic Insurance shall be required to be provided
by insurers having an AM Best Rating of A-VIII, if available. Notwithstanding the foregoing, after a Securitization, required insurance may be obtained from insurers that do not satisfy the foregoing ratings requirements if Borrower shall have
obtained a Rating Agency Confirmation with respect thereto. All insurers providing insurance required by this Agreement shall be authorized to issue insurance in the applicable State. 
 6.1.13 Form of Insurance Policies; Endorsements. The Policies (i) shall name Lender and its successors and/or assigns as their
interest may appear as an additional insured or as a loss payee (except that in the case of general liability insurance, Lender shall be named an additional insured and not a loss payee); (ii) shall contain a Non-Contributory 
  

 75 

 Standard Lender Clause and, except with respect to general liability insurance and workers’ compensation insurance,
a Lender’s Loss Payable Endorsement, or their equivalents; (iii) shall include effective waivers by the insurer of all claims for insurance premiums against all loss payees, additional insureds and named insureds (other than Borrower) and
all rights of subrogation against any loss payee, additional insured or named insured; (iv) shall be assigned to Lender; (v) except as otherwise provided above, shall be subject to a deductible, if any, not greater in any material respect
than the deductible for such coverage on the date hereof; (vi) shall contain such provisions as Lender deems reasonably necessary or desirable to protect its interest, including endorsements providing that neither Borrower, Lender nor any other
party shall be a Contributor-insurer (except deductibles) under said Policies and that no material modification, reduction, cancellation or termination in amount of, or material change (other than an increase) in, coverage of any of the Policies
shall be effective until at least thirty (30) days after receipt by each named insured, additional insured and loss payee of written notice thereof or ten (10) days after receipt of such notice with respect to nonpayment of premium;
(vii) shall permit Lender to pay the premiums and continue any insurance upon failure of Borrower to pay premiums when due, upon the insolvency of Borrower or through foreclosure or other transfer of title to the Property (it being understood
that Borrower’s rights to coverage under such policies may not be assignable without the consent of the insurer); and (viii) shall provide that any proceeds shall be payable to Lender and that the insurance shall not be impaired or
invalidated by virtue of (A) any act, failure to act, negligence of, or violation of declarations, warranties or conditions contained in such policy by the Borrower, Lender or any other named insured, additional insured or loss payee, except
for the willful misconduct of Lender knowingly in violation of the conditions of such policy, (B) the occupation, use, operation or maintenance of the Property for purposes more hazardous than permitted by the terms of the Policy, (C) any
foreclosure or other proceeding or notice of sale relating to the Property, or (D) any change in the possession of the Property without a change in the identity of the holder of actual title to the Property (provided that with respect to items
(C) and (D), any notice requirements of the applicable Policies are satisfied). Notwithstanding the foregoing, for purposes hereof, Lender hereby approves the existing insurance policies as of the Closing Date and any renewals thereof with the
same insurance ratings and terms. 
 6.1.14 Premiums; Certificates; Renewals. (a) Borrower shall pay or cause to be
paid the premiums for such Policies (the “Insurance Premiums”) as the same become due and payable and shall furnish to Lender the receipts for the payment of the Insurance Premiums or other evidence of such payment reasonably
satisfactory to Lender (provided, however, that Borrower is not required to furnish such evidence of payment to Lender if such Insurance Premiums are to be paid by Lender pursuant to the terms of this Agreement). Within thirty
(30) days after request by Lender, Borrower shall obtain such increases in the amounts of coverage required hereunder as may be reasonably requested in writing by Lender or as may be requested in writing by the Rating Agencies (except with
respect to the Terrorism Insurance and seismic insurance required hereunder), taking into consideration changes in liability laws, changes in prudent customs and practices, and the like. In the event Borrower satisfies the requirements under this
Section 6.1.14 through the use of a Policy covering properties in addition to the Property, then (unless such policy is provided in substantially the same manner as it is as of the date hereof), Borrower shall provide evidence
satisfactory to Lender that the Insurance Premiums for the Property are separately allocated under such Policy to the Property and that payment of such allocated amount (A) shall maintain the effectiveness of such Policy as to the 

 

 76 

 Property and (B) shall otherwise provide the same protection as would a separate policy that complies with the terms
of this Agreement as to the Property, notwithstanding the failure of payment of any other portion of the insurance premiums. If no such allocation is available, Lender shall have the right to increase the amount required to be deposited into the
Insurance Reserve Account in an amount sufficient to purchase a nonblanket Policy covering the Property from insurance companies which qualify under this Agreement. 
 (b) Borrower shall deliver to Lender on or prior to the Closing Date certificates setting forth in reasonable detail the material terms (including any applicable notice requirements) of all Policies from the
respective insurance companies (or their authorized agents) that issued the Policies, including that such Policies may not be canceled or modified in any material respect without thirty (30) days’ prior notice to Lender, or ten
(10) days’ notice with respect to nonpayment of premium. Borrower shall deliver to Lender, concurrently with each change in any Policy, a certificate with respect to such changed Policy certified by the insurance company issuing that
Policy, in substantially the same form and containing substantially the same information as the certificates required to be delivered by Borrower pursuant to the first sentence of this clause (i) and stating that all premiums then due thereon
have been paid to the applicable insurers and that the same are in full force and effect (or if such certificate and/or other information described in this clause (ii) shall not be obtainable by Borrower, Borrower may deliver an Officer’s
Certificate to such effect in lieu thereof). 
 (c) Within three (3) Business Days prior to the expiration, termination or cancellation
of any Policy, Borrower shall renew such policy or obtain a replacement policy or policies (or a binding commitment for such replacement policy or policies), which shall be effective no later than the date of the expiration, termination or
cancellation of the previous policy, and shall deliver to Lender a certificate in respect of such policy or policies (A) containing the same information as the certificates required to be delivered by Borrower pursuant to clause (b) above,
or a copy of the binding commitment for such policy or policies and (B) confirming that such policy complies with all requirements hereof. 
 (d) If Borrower does not furnish to Lender the certificates as required under clause (c) above, upon three (3) Business Days prior notice to Borrower, Lender may procure, but shall not be obligated to procure, such replacement
policy or policies and pay the Insurance Premiums therefor, and Borrower agree to reimburse Lender for the cost of such Insurance Premiums promptly on demand. 
 (e) Concurrently with the delivery of each replacement policy or a binding commitment for the same, Borrower shall deliver to Lender a report or attestation from a duly licensed or authorized insurance broker or from
the insurer, setting forth the particulars as to all insurance obtained by Borrower pursuant to this Section 6.1 and then in effect and stating that all Insurance Premiums then due thereon have been paid in full to the applicable
insurers, that such insurance policies are in full force and effect and that, in the opinion of such insurance broker or insurer, such insurance otherwise complies with the requirements of this Section 6.1 (or if such report shall not be
available after Borrower shall have used reasonable efforts to provide the same, Borrower will deliver to Lender an Officer’s Certificate containing the information to be provided in such report). 
  

 77 

 6.1.15 Separate Insurance. Borrower shall not take out separate insurance
contributing in the event of loss with that required to be maintained pursuant to this Section 6.1 unless such insurance complies with this Section 6.1. 
 6.1.16 Blanket Policies. The insurance coverage required under this Section 6.1 may be effected under a blanket policy
or policies covering the Property and other properties and assets not constituting a part of the Property; provided that any such blanket policy shall specify, except in the case of public liability insurance, the portion of the total
coverage of such policy that is allocated to the Property, and any sublimits in such blanket policy applicable to the Property, which amounts shall not be less than the amounts required pursuant to this Section 6.1 and which shall in any
case comply in all other respects with the requirements of this Section 6.1. Upon Lender’s request, Borrower shall deliver to Lender an Officer’s Certificate setting forth (i) the number of properties covered by such
policy, (ii) the location by city (if available, otherwise, county) and state of the properties, (iii) the average square footage of the properties (or the aggregate square footage), (iv) a brief description of the typical
construction type included in the blanket policy and (v) such other information as Lender may reasonably request. 
 6.1.17
Securitization. Following any Securitization, Borrower shall name any trustee, servicer or special servicer designated by Lender as a loss payee, and any trustee, servicer and special servicer as additional insureds, with respect
to any Policy for which Lender is to be so named hereunder. 
 Section 6.2 Condemnation and Insurance Proceeds. 
 6.2.1 Right to Adjust. (a) If the Property is damaged or destroyed, in whole or in part in any material respect, by a Casualty,
Borrower shall give prompt written notice thereof to Lender, generally describing the nature and extent of such Casualty. Following the occurrence of a Casualty, Borrower, regardless of whether proceeds are available, shall in a reasonably prompt
manner proceed to restore, repair, replace or rebuild the Property to the extent practicable to be of at least equal value and of substantially the same character as prior to the Casualty, all in accordance with the terms hereof applicable to
Alterations. 
 (b) Subject to clause (e) below, in the event of a Casualty which is not a Material Casualty, Borrower may settle and
adjust such claim; provided that such adjustment is carried out in a competent and timely manner. In such case, Borrower is hereby authorized to collect and receipt for Lender any Proceeds. 
 (c) Subject to clause (e) below, in the event of a Casualty where the loss exceeds the Threshold Amount, Borrower may settle and adjust such claim
only with the consent of Lender (which consent shall not be unreasonably withheld, delayed or conditioned) and Lender shall have the opportunity to participate, at Borrower’s cost, in any such adjustments. 
 (d) Except as provided in clause (b) above, the proceeds of any Policy shall be due and payable solely to Lender and held and applied in accordance
with the terms hereof (or, if mistakenly paid to the Borrower, shall be held in trust by the Borrower for the benefit of Lender and shall be paid over to Lender by the Borrower within two (2) Business Days of receipt). 
  

 78 

 (e) Notwithstanding the terms of clauses (a) and (b) above, Lender shall have the sole
authority to adjust any claim with respect to a Casualty and to collect all Proceeds if an Event of Default shall have occurred and is continuing. 
 6.2.2 Right of the Borrower to Apply to Restoration. In the event of (a) a Casualty that does not constitute a Material Casualty, or (b) a Condemnation that does not constitute a Material Condemnation, Lender
shall permit the application of the Proceeds (after reimbursement of any expenses incurred by Lender) to reimburse or pay Borrower for the cost of restoring, repairing, replacing or rebuilding or otherwise curing title defects at the Property (the
Restoration), in the manner required hereby, provided and on the condition that (1) no Event of Default shall have occurred and be then continuing and (2) in the reasonable judgment of Lender: 
 (i) the Property can be restored to an economic unit not materially less valuable (taking into account the effect of the termination of any Leases and
the proceeds of any rental loss or business interruption insurance which the Borrower receives or is entitled to receive, in each case, due to such Casualty or Condemnation) and not materially less useful than the same was prior to the Casualty or
Condemnation, 
 (ii) the Property, after such Restoration and stabilization, will adequately secure the outstanding balance of the Loan,

 (iii) the Restoration can be completed by the earliest to occur of: 
 (A) the date on which the business interruption insurance carried by Borrower with respect to the Property shall expire; 
 (B) the 180th day
prior to the Maturity Date (taking into account any extension thereof), and 
 (C) with respect to a Casualty, the expiration of the payment
period on the rental loss or business interruption insurance coverage in respect of such Casualty; and 
 (iv) after receiving reasonably
satisfactory evidence to such effect, during the period of the Restoration, the sum of (A) income derived from the Property, plus (B) proceeds of rental loss insurance or business interruption insurance, if any, payable together with such
other monies as Borrower may irrevocably make available for the Restoration, will equal or exceed the sum of (x) 105% of Operating Expenses and (y) the Debt Service. 
 Notwithstanding the foregoing, if any of the conditions set forth in sub-clauses (1) and (2) of the proviso in this Section 6.2.2 is not satisfied, then, unless Lender shall otherwise elect, at
its sole option, the Proceeds shall be applied in the following order of priority: (A) first, to prepay the principal of the Loan; (B) second, to pay the amount of (1) all accrued and unpaid interest in respect of the Principal Amount
of the Indebtedness so prepaid through the date which is the 
  

 79 

 final day of the Interest Period in which such prepayment is made (including, if an Event of Default has occurred and is
then continuing, interest owed at the Default Rate), and (2) all other sums (excluding any Prepayment Fee) then due and owing under the Loan Documents and (C) third, to reimburse Lender for any fees and expenses of Lender incurred in
connection therewith (it being agreed that, upon satisfaction in full of the entitlements under clauses (A), (B) and (C) of this sentence, Borrower shall be entitled to receive a release of the Lien of the Security Instrument and the other
Loan Documents with respect to the Property in accordance with and subject to the terms of Section 2.3.3 hereof and any surplus Proceeds shall be paid over to the Mezzanine Lender to be applied in accordance with the terms of the
Mezzanine Loan Agreement. Notwithstanding the foregoing, or anything else to the contrary contained herein, all Proceeds with respect to the insurance determined pursuant to Section 6.1.4 shall be deposited directly into the Collection
Account and shall be disbursed in accordance with Article III as if such Proceeds are applied in the manner amounts received from the Manager are applied 
 6.2.3 Material Casualty or Condemnation and Lender’s Right to Apply Proceeds. In the event of a Material Casualty or a Material Condemnation, then Lender shall have the option to
(i) apply the Proceeds hereof in the following order of priority: (A) first, to prepay the principal of the Loan; (B) second, to pay the amount of (1) all accrued and unpaid interest in respect of the Principal Amount of the
Indebtedness so prepaid through the date which is the final day of the Interest Period in which such prepayment is made (including, if an Event of Default has occurred and is then continuing, interest owed at the Default Rate), and (2) all
other sums (excluding any Prepayment Fee) then due and owing under the Loan Documents; (C) third, to reimburse Lender for any fees and expenses of Lender incurred in connection therewith; and (D) fourth, the balance of Proceeds shall then
be paid to Mezzanine Lender to be applied pursuant to the terms of the Mezzanine Loan Agreement (it being agreed that, upon satisfaction in full of the entitlements under clauses (A), (B) (C) and (D) of this sentence, Borrower shall
be entitled to receive the balance of the Proceeds, if any and a release of the Lien of the Security Instrument and the other Loan Documents with respect to the Property in accordance with and subject to the terms of Section 2.3.3
hereof), or (ii) make such Proceeds available to reimburse Borrower for the cost of any Restoration in the manner set forth below in Section 6.2.4 hereof provided, however, that if the Management Agreement provides
that the Operating Lessee or Borrower is required to use the Proceeds to restore the Property and Operating Lessee or Borrower does not have the right to terminate the Management Agreement pursuant to the terms of the Management Agreement as a
result of such Casualty or Condemnation or otherwise, then the Lender shall be obligated to make such Proceeds available to the Borrower for the Restoration of such Property pursuant to Section 6.2.4 below. Notwithstanding anything to
the contrary contained herein, in the event of a Material Casualty or a Material Condemnation, where Borrower cannot restore, repair, replace or rebuild the Property to be of at least substantially equal value and of substantially the same character
as prior to the Material Casualty or Material Condemnation or title defect because the Property is a legally non-conforming use or as a result of any other Legal Requirement, Borrower hereby agrees that Lender may apply the Proceeds payable in
connection therewith in accordance with clauses (A), (B) (C) and (D). 
 6.2.4 Manner of Restoration and
Reimbursement. If Borrower is entitled pursuant to Sections 6.2.2 or 6.2.3 above to reimbursement out of Proceeds (and the conditions specified therein shall have been satisfied), such Proceeds shall be disbursed on a

  

 80 

 monthly basis upon Lender being furnished with (i) such architect’s certificates, waivers of lien,
contractor’s sworn statements, title insurance endorsements, bonds, plats of survey and such other evidences of cost, payment and performance as Lender may reasonably require and approve, and (ii) all plans and specifications for such
Restoration, such plans and specifications to be approved by Lender prior to commencement of any work (such approval not to be unreasonably withheld, delayed or conditioned). In addition, no payment made prior to the Final Completion of the
Restoration (excluding punch-list items) shall exceed ninety percent (90%) of the aggregate value of the work performed from time to time; funds other than Proceeds shall be disbursed prior to disbursement of such Proceeds; and at all times,
the undisbursed balance of such Proceeds remaining in the hands of Lender, together with funds deposited for that purpose or irrevocably committed to the satisfaction of Lender by or on behalf of Borrower for that purpose, shall be at least
sufficient in the reasonable judgment of Lender to pay for the cost of completion of the Restoration, free and clear of all Liens or claims for Lien. Prior to any disbursement, Lender shall have received evidence reasonably satisfactory to it of the
estimated cost of completion of the Restoration (such estimate to be made by Borrower’s architect or contractor and approved by Lender in its reasonable discretion), and Borrower shall have deposited with Lender Eligible Collateral in an amount
equal to the excess (if any) of such estimated cost of completion over the net Proceeds. Any surplus which may remain out of Proceeds received pursuant to a Casualty after payment of such costs of Restoration shall be paid to the Mezzanine Lender to
be applied in accordance with the terms of the Mezzanine Loan Agreement. Any surplus which may remain out of Proceeds received pursuant to a Condemnation shall be paid to the Mezzanine Lender to be applied in accordance with the terms of the
Mezzanine Loan Agreement. 
 6.2.5 Condemnation. (a) Borrower shall promptly give Lender written notice of the actual
commencement or written threat of commencement of any Condemnation and shall deliver to Lender copies of any and all papers served in connection with such Condemnation. Following the occurrence of a Condemnation, Borrower, regardless of whether
Proceeds are available, shall promptly proceed to restore, repair, replace or rebuild the same to the extent practicable to be of at least equal value and of substantially the same character as prior to such Condemnation, all to be effected in
accordance with the terms hereof applicable to Alterations. 
 (b) Lender is hereby irrevocably appointed as Borrower’s
attorney-in-fact, coupled with an interest, with exclusive power to collect, receive and retain any Proceeds in respect of a Condemnation and to make any compromise or settlement in connection with such Condemnation, subject to the provisions of
this Section. Provided no Event of Default has occurred and is continuing, (x) in the event of a Condemnation which is not a Material Condemnation, Borrower may settle and compromise such Proceeds; provided that the same is effected in a
competent and timely manner, and (y) in the event of a Condemnation, where the loss exceeds the Threshold Amount, Borrower may settle and compromise the Proceeds only with the consent of Lender (which consent shall not be unreasonably withheld,
delayed or conditioned) and Lender shall have the opportunity to participate, at Borrower’ cost, in any litigation and settlement discussions in respect thereof. Notwithstanding any Condemnation by any public or quasi-public authority
(including any transfer made in lieu of or in anticipation of such a Condemnation), Borrower shall continue to pay the Indebtedness at the time and in the manner provided for in the Note, this Agreement and the other Loan Documents, and the

  

 81 

 Indebtedness shall not be reduced unless and until any Proceeds shall have been actually received and applied by Lender
to discharge the Indebtedness, pay required interest and pay any other required amounts, in each case, pursuant to the terms of Sections 6.2.2 or 6.2.3 above. Lender shall not be limited to the interest paid on the Proceeds by the
condemning authority but shall be entitled to receive out of the Proceeds interest at the rate or rates provided in the Note. Borrower shall cause any Proceeds that are payable to Borrower to be paid directly to Lender to be held and applied in
accordance with the terms hereof. 
 Section 6.3 Insurance Provisions in Management Agreement. Despite any other
provision of this Article VI, if any provision of this Article VI conflicts with or is inconsistent with any insurance provision in the Management Agreement with respect to the Property, the provisions of the Management Agreement will
prevail. 
 VII. IMPOSITIONS, OTHER CHARGES, LIENS AND OTHER ITEMS 
 Section 7.1 Impositions and Other Charges. Subject to the third sentence of this Section 7.1, Borrower shall pay, or
shall cause Operating Lessee to pay all Impositions now or hereafter levied or assessed or imposed against the Property or any part thereof prior to the imposition of any interest, charges or expenses for the non-payment thereof and shall pay all
Other Charges on or before the date they are due. Subject to Borrower’s right of contest set forth in Section 7.3, as set forth in the next two sentences and provided that there are sufficient funds available in the Tax Reserve
Account, Lender, on behalf of Borrower, shall pay all Impositions and Other Charges which are attributable to or affect the Property or Borrower, prior to the date such Impositions or Other Charges shall become delinquent or late charges may be
imposed thereon, directly to the applicable taxing authority with respect thereto. Lender shall, or Lender shall direct the Cash Management Bank to, pay to the taxing authority such amounts to the extent funds in the Tax Reserve Account are
sufficient to pay such Impositions. Nothing contained in this Agreement or the Security Instrument shall be construed to require Borrower to pay any tax, assessment, levy or charge imposed on Lender in the nature of a franchise, capital levy,
estate, inheritance, succession, income or net revenue tax. 
 Section 7.2 No Liens. Subject to its right of contest set
forth in Section 7.3, Borrower shall at all times keep, or cause to be kept, the Property free from all Liens (other than Permitted Encumbrances) and shall pay when due and payable (or bond over) all claims and demands of mechanics,
materialmen, laborers and others which, if unpaid, might result in or permit the creation of a Lien on the Property or any portion thereof and shall in any event cause the prompt, full and unconditional discharge of all Liens imposed on or against
the Property or any portion thereof within forty-five (45) days after receiving written notice of the filing (whether from Lender, the lienor or any other Person) thereof. Borrower shall do or cause to be done, at the sole cost of Borrower,
everything reasonably necessary to fully preserve the first priority of the Lien of the Security Instrument against the Property, subject to the Permitted Encumbrances. Upon the occurrence and during the continuance of an Event of Default with
respect to its Obligations as set forth in this Article VII, Lender may (but shall not be obligated to) make such payment or discharge such Lien, and Borrower shall reimburse Lender within three (3) Business Days following demand for all
such advances pursuant to Section 19.12 (together with interest thereon at the Default Rate). 
  

 82 

 Section 7.3 Contest. Nothing contained herein shall be deemed to require Borrower to
pay, or cause to be paid, any Imposition or to satisfy any Lien, or to comply with any Legal Requirement or Insurance Requirement, so long as Borrower is in good faith, and by proper legal proceedings, where appropriate, diligently contesting the
validity, amount or application thereof, provided that in each case, at the time of the commencement of any such action or proceeding, and during the pendency of such action or proceeding (i) no Event of Default shall exist and be continuing
hereunder, (ii) Borrower shall keep Lender informed of the status of such contest at reasonable intervals, (iii) if neither Borrower nor Operating Lessee is providing security as provided in clause (vi) below, adequate reserves with
respect thereto are maintained on Borrower’s books in accordance with GAAP or in the Tax Reserve Account or Insurance Reserve Account, as applicable, (iv) either such contest operates to suspend collection or enforcement as the case may
be, of the contested Imposition, Lien or Legal Requirement and such contest is maintained and prosecuted continuously and with diligence or the Imposition or Lien is bonded, (v) in the case of any Insurance Requirement, the failure of Borrower
to comply therewith shall not impair the validity of any insurance required to be maintained by Borrower under Section 6.1 or the right to full payment of any claims thereunder, and (vi) in the case of Impositions and Liens which
are not bonded in excess of $1,000,000 individually, or in the aggregate, during such contest, Borrower, shall deposit with or deliver to Lender either Cash and Cash Equivalents or a Letter or Letters of Credit in an amount equal to 125% of
(A) the amount of Borrower’s obligations being contested plus (B) any additional interest, charge, or penalty arising from such contest. Notwithstanding the foregoing, the creation of any such reserves or the furnishing of any bond or
other security, Borrower promptly shall comply with any contested Legal Requirement or Insurance Requirement or shall pay any contested Imposition or Lien, and compliance therewith or payment thereof shall not be deferred, if, at any time the
Property or any portion thereof shall be, in Lender’s reasonable judgment, in imminent danger of being forfeited or lost or Lender is likely to be subject to civil or criminal damages as a result thereof. If such action or proceeding is
terminated or discontinued adversely to Borrower, Borrower shall deliver to Lender reasonable evidence of Borrower’s compliance with such contested Imposition, Lien, Legal Requirements or Insurance Requirements, as the case may be. 

VIII. TRANSFERS, INDEBTEDNESS AND SUBORDINATE LIENS 
 Section 8.1 Restrictions on Transfers and Indebtedness. (a) Except in connection with a Permitted Mezzanine Transfer or any Exchange (which shall not require Lender’s consent or a Rating
Confirmation), unless such action is permitted by the subsequent provisions of this Article VIII, Borrower will not, without Lender’s prior written consent and a Rating Agency Confirmation with respect to the transfer or other matter in
question, (A), Transfer legal, Beneficial or direct or indirect equitable interests in all or any part of the Property, the Borrower, Operating Lessee or the Mezzanine Borrower, (B) permit or suffer any owner, directly or indirectly, of a
legal, Beneficial or equitable interest in the Property, the Borrower or Operating Lessee to Transfer such interest, whether by transfer of stock or other legal, Beneficial or equitable interest in any entity or otherwise, (C) mortgage,
hypothecate or otherwise encumber or grant a security interest in all or any part of the legal, Beneficial or equitable interests in all or any part of the Property, the Borrower or the Operating Lessee, or (D) file of record a declaration of
condominium with respect to the Property. Notwithstanding any provision herein to the contrary, nothing contained herein shall be deemed to restrict or otherwise interfere with the ability of the holders of direct or indirect legal, Beneficial or
equitable interests in the Ultimate Equity Owner to Transfer such interests, whether in connection with an initial public offering of shares in Ultimate Equity Owner or otherwise. 
  

 83 

 (b) Borrower shall not incur, create or assume any Indebtedness without the consent of Lender;
provided, however, Borrower may, without the consent of Lender, incur, create or assume Permitted Debt. 
 Section 8.2
Sale of Building Equipment. Borrower may Transfer or dispose of Building Equipment which is being replaced or which is no longer necessary in connection with the operation of the Property free from the Lien of the Security
Instrument provided that such Transfer or disposal will not have a Material Adverse Effect on the value of the Property taken as a whole, will not materially impair the utility of the Property, and will not result in a reduction or abatement of, or
right of offset against, the Rents payable under any Lease, in either case as a result thereof, and provided, further, that any new Building Equipment acquired by Borrower or Operating Lessee(and not so disposed of) shall be subject to
the Lien of the Security Instrument. Lender shall, from time to time, upon receipt of an Officer’s Certificate requesting the same and confirming satisfaction of the conditions set forth above, execute a written instrument in form reasonably
satisfactory to Lender to confirm that such Building Equipment which is to be, or has been, sold or disposed of is free from the Lien of the Security Instrument. 
 Section 8.3 Immaterial Transfers and Easements, etc. Borrower and Operating Lessee may, without the consent of Lender, (i) make immaterial Transfers of portions of the Property to Governmental
Authorities for dedication or public use (subject to the provisions of Section 6.2) or, portions of the Property to third parties for the purpose of erecting and operating additional structures whose use is integrated with the use of the
Property, and (ii) grant easements, restrictions, covenants, reservations and rights of way in the ordinary course of business for access, water and sewer lines, telephone and telegraph lines, electric lines or other utilities or for other
similar purposes, provided that no such Transfer, conveyance or encumbrance set forth in the foregoing clauses (i) and (ii) shall materially impair the utility and operation of the Property or have a Material Adverse Effect on the value of
the Property taken as a whole. In connection with any Transfer permitted pursuant to this Section 8.3, Lender shall execute and deliver any instrument reasonably necessary or appropriate, in the case of the Transfers referred to in
clause (i) above, to release the portion of the Property affected by such Condemnation or such Transfer from the Lien of the Security Instrument or, in the case of clause (ii) above, to subordinate the Lien of the Security Instrument to
such easements, restrictions, covenants, reservations and rights of way or other similar grants upon receipt by Lender of: 
 (a) thirty
(30) days prior written notice thereof; 
 (b) a copy of the instrument or instruments of Transfer; 
 (c) an Officer’s Certificate stating (x) with respect to any Transfer, the consideration, if any, being paid for the Transfer and (y) that
such Transfer does not materially impair the utility and operation of the Property, materially reduce the value of the Property or have a Material Adverse Effect; and 
  

 84 

 (d) reimbursement of all of Lender’s reasonable costs and expenses incurred in connection with such
Transfer. 
 Section 8.4 Transfers of Interests in Borrower. In addition to any transfer permitted by any other provision
of this Article VIII (including, without limitation, any transfer in connection with an Exchange), each holder of any direct or indirect interest in the Mezzanine Borrower shall have the right to transfer (but not pledge, hypothecate or
encumber) its equity interest in the Mezzanine Borrower to any Person who is not a Disqualified Transferee without Lender’s consent or a Rating Agency Confirmation if Section 8.6 is complied with and, after giving effect to such
transfer: 
 (a) (i) the Property will be directly owned by a Single Purpose Entity in compliance with the representations, warranties
and covenants in Section 4.1.29 hereof (as if the Borrower shall have remade all of such representations, warranties and covenants as of, and after giving effect to, the transfer), and which shall have executed and delivered to Lender an
assumption agreement in form and substance acceptable to Lender, evidencing the continuing agreement of the Borrower to abide and be bound by all the terms, covenants and conditions set forth in this Agreement, the Note, the Security Instrument and
the other Loan Documents and all other outstanding obligations under the Loan, together with such legal opinions and title insurance endorsements as may be reasonably requested by Lender; 
 (b) an Acceptable Manager shall continue to act as Manager for the Property pursuant to the existing Management Agreement or an Acceptable Management
Agreement; 
 (c) Any Ultimate Equity Owners or a Close Affiliate of any such entity owns directly or indirectly at least fifty-one percent
(51%) of the equity interests in the Borrower and the Person that is the proposed transferee is not a Disqualified Transferee; provided that, after giving effect to any such transfer, in no event shall any Person other than Ultimate Equity
Owner or a Close Affiliate of Ultimate Equity Owner exercise Management Control over the Borrower. In the event that Management Control shall be exercisable jointly by any Ultimate Equity Owner or a Close Affiliate of any Ultimate Equity Owner with
any other Person or Persons, then the applicable Ultimate Equity Owner or such Close Affiliate shall be deemed to have Management Control only if such Ultimate Equity Owner or such Close Affiliate retains the ultimate right as between such Ultimate
Equity Owner or such Close Affiliate and the transferee to unilaterally make all material decisions with respect to the operation, management, financing and disposition of the Property; 
 (d) if there has been a Transfer of forty-nine percent (49%) or more of the direct membership interests, stock or other direct equity ownership
interests in Borrower, Borrower shall have first delivered to Lender (and, after a Securitization, the Rating Agencies) an Officer’s Certificate and legal opinion of the types described in Section 8.6 below; and 
 (e) Borrower shall cause the transferee, if Lender so requests and if such transferee is required to be a Single Purpose Entity pursuant to this
Agreement, to deliver to S&P and to any other Rating Agency Lender requests its organizational documents solely for the purpose of Standard & Poor’s and such other Rating Agency Lender requests confirming that such organizational
documents comply with the single purpose bankruptcy remote entity requirements set forth herein. 
  

 85 

 Section 8.5 Loan Assumption. Without limiting the foregoing, Borrower, Prime
Lessee and Operating Lessee shall have the right to sell, assign, convey or transfer (but not mortgage, hypothecate or otherwise encumber or grant a security interest in) legal or equitable title to all (but not less than all) of the Property only
if: 
 (a) after giving effect to the proposed transaction: 
 the Property will be owned by a Single Purpose Entity wholly owned (directly or indirectly) by a Permitted Borrower Transferee, Permitted Borrower Transferee Alternative, Pre-approved Transferee or such other entity
(specifically approved in writing by both Lender and each Rating Agency) which will be in compliance with the representations, warranties and covenants contained in Section 4.1.29 hereof (as if such transferee shall have remade all of
such representations, warranties and covenants as of, and after giving effect to, the proposed transaction); such Single Purpose Entity shall have executed and delivered to Lender an assumption agreement and such other agreements as Lender may
reasonably request (collectively, the “Assumption Agreement”) in form and substance acceptable to Lender, evidencing the proposed transferee’s agreement to abide and be bound by all the terms, covenants and conditions
set forth in this Agreement, the Note, the Security Instrument and the other Loan Documents and all other outstanding obligations under the Loan; the Permitted Borrower Transferee, Permitted Borrower Transferee Alternative, Pre-approved Transferee
or such other approved entity shall assume the obligations of Guarantor under the Loan Documents (and such Single Purpose Entity and the applicable Permitted Borrower Transferee, Permitted Borrower Transferee Alternative, Pre-approved Transferee or
other approved entity shall thereafter be subject to the provisions of this Article VIII), and the transferee shall cause to be delivered to Lender, such legal opinions and title insurance endorsements as may be reasonably requested by
Lender; 
 (i) an Acceptable Manager shall continue to act as Manager for the Property pursuant to the existing Management Agreement or an
Acceptable Management Agreement; and 
 (ii) no Event of Default shall have occurred and be continuing; 
 (b) the Assumption Agreement shall state the applicable transferee’s agreement to abide by and be bound by the terms in the Note (or such other
promissory notes to be executed by the transferee, such other promissory note or notes to be on the same terms as the Note), the Security Instrument, this Agreement (or such other loan agreement to be executed by such transferee, which shall contain
terms substantially identical to the terms hereof) and such other Loan Documents (or other loan documents to be delivered by such transferee, which shall contain terms substantially identical to the terms of the applicable Loan Documents) whenever
arising, and Borrower, and/or such transferee shall deliver such legal opinions and title insurance endorsements as may reasonably be requested by Lender; 
  

 86 

 (c) following execution of a contract for the sale of the Property and not less than thirty
(30) days prior to the expected date of such proposed sale, Borrower shall submit notice of such sale to Lender. Borrower shall submit to Lender, not less than ten (10) days prior to the expected date of such sale, the Assumption Agreement
for execution by Lender. Such documents shall be in a form appropriate for the jurisdiction in which the Property is located and shall be reasonably satisfactory to Lender. In addition, Borrower shall provide all other documentation Lender
reasonably requires to be delivered by Borrower in connection with such assumption, together with an Officer’s Certificate certifying that (i) the assumption to be effected will be effected in compliance with the terms of this Agreement
and (ii) will not impair or otherwise adversely affect the validity or priority of the Lien of the Security Instrument; 
 (d) prior to
any such transaction, the proposed transferee shall deliver to Lender an Officer’s Certificate stating that (x) such transferee is not an “employee benefit plan” within the meaning of Section 3(3) of ERISA that is subject
Title I of ERISA or any other Similar Law and (y) the underlying assets of the proposed transferee do not constitute assets of any such employee benefit plan for purposes of ERISA or any Similar Law; 
 (e) if the transfer is to (i) an entity other than a Single Purpose Entity wholly owned directly or indirectly by one or more Pre-approved
Transferees, Permitted Borrower Transferees or Permitted Borrower Transferee Alternatives, a Rating Agency Confirmation shall have been received in respect of such proposed transfer (or, if the proposed transfer shall occur prior to a
Securitization, such transfer shall be subject to Lender’s consent in its sole discretion) and (ii) a Permitted Borrower Transferee Alternative, such transfer shall be subject to Lender’s prior written consent in its reasonable
discretion; 
 (f) the terms of Section 8.6 shall be complied with and Borrower shall cause the transferee to deliver to S&P
and to any other Rating Agency Lender requests its organizational documents solely for the purpose of S&P and any other Rating Agency Lender requests confirming that such organizational documents comply with the single purpose bankruptcy remote
entity requirements set forth herein; 
 (g) Lender shall have received the payment of, or reimbursement for, all reasonable costs and
expenses incurred by Lender and the Rating Agencies (and any servicer in connection with a Securitization) in connection therewith (including, without limitation, reasonable attorneys’ fees and disbursements); and 
 (h) The Mezzanine Borrower shall simultaneously exercise its right to transfer the “Collateral” (as defined in the Mezzanine Loan) pursuant to
and in accordance with Section 8.5 of each Mezzanine the Loan Agreement. 
 Section 8.6 Notice Required; Legal
Opinions. Not less than five (5) Business Days prior to the closing of any transaction permitted under the provisions of Sections 8.2 through 8.5, Borrower shall deliver or cause to be delivered to Lender
(A) an Officer’s Certificate describing the proposed transaction and stating that such transaction is permitted hereunder and under the other Loan Documents, together with any documents upon which such Officer’s Certificate is based,
and (B) a legal opinion of counsel to Borrower or the transferee selected by either of them (to the extent approved by Lender and the Rating Agencies), 
  

 87 

 in form and substance consistent with similar opinions then being required by the Rating Agencies and acceptable to the
Rating Agencies, confirming, among other things, that the assets of the Borrower, and of its managing general partner or managing member, as applicable, will not be substantively consolidated with the assets of such owners or Controlling Persons of
the Borrower as Lender or the Rating Agencies may specify, in the event of a bankruptcy or similar proceeding involving such owners or Controlling Persons. 
 Section 8.7 Leases. 
 8.7.1 New Leases and Lease
Modifications. Except as otherwise provided in this Section 8.7, Borrower shall not and shall not permit Operating Lessee to (i) enter into any Lease on terms other than “market” and rental rates (in
Borrower’s or Operating Lessee’s good faith judgment), or (ii) enter into any Material Lease (a “New Lease”), or (iii) consent to the assignment of any Material Lease (unless required to do so by the terms
of such Material Lease) that releases the original Tenant from its obligations under the Material Lease, or (iv) modify any Material Lease (including, without limitation, accept a surrender of any portion of the Property subject to a Material
Lease (unless otherwise permitted or required by law), allow a reduction in the term of any Material Lease or a reduction in the Rent payable under any Material Lease, change any renewal provisions of any Material Lease, materially increase the
obligations of the landlord or materially decrease the obligations of any Tenant) or terminate any Material Lease (any such action referred to in clauses (iii) and (iv) being referred to herein as a “Lease
Modification”) without the prior written consent of Lender which consent shall not be unreasonably withheld, delayed or conditioned. Any New Lease or Lease Modification that requires Lender’s consent shall be delivered to Lender
for approval not less than ten (10) Business Days prior to the effective date of such New Lease or Lease Modification. 
 8.7.2
Leasing Conditions. Subject to terms of this Section 8.7, provided no Event of Default shall have occurred and be continuing, Borrower may enter into a New Lease or Lease Modification, without Lender’s prior
written consent, that satisfies each of the following conditions (as evidenced by an Officer’s Certificate delivered to Lender prior to Borrower’s entry into such New Lease or Lease Modification): 
 (a) with respect to a New Lease or Lease Modification, the premises demised thereunder is not more than 10,000 net rentable square feet of the Property;

 (b) the term of such New Lease or Lease Modification, as applicable, does not exceed 120 months, plus up to two (2) 60-month option
terms (or equivalent combination of renewals); 
 (c) the New Lease or Lease Modification provides for “market” rental rates other
terms and does not contain any terms which would adversely affect Lender’s rights under the Loan Documents or that would have a Material Adverse Effect; 
 (d) the New Lease or Lease Modification, as applicable, provides that the premises demised thereby cannot be used for any of the following uses: any pornographic or obscene purposes, any commercial sex establishment,
any pornographic, obscene, nude or semi-nude performances, modeling, materials, activities or sexual conduct or any other use that has or could reasonably be expected to have a Material Adverse Effect; 
  

 88 

 (e) the Tenant under such New Lease or Lease Modification, as applicable, is not an Affiliate of
Borrower; 
 (f) the New Lease or Lease Modification, as applicable, does not prevent Proceeds from being held and disbursed by Lender in
accordance with the terms hereof and does not entitle any Tenant to receive and retain Proceeds except those that may be specifically awarded to it in condemnation proceedings because of the Condemnation of its trade fixtures and its leasehold
improvements which have not become part of the Property and such business loss as Tenant may specifically and separately establish; and 
 (g) the New Lease or Lease Modification, as applicable satisfies the requirements of Section 8.7.7 and Section 8.7.8. 
 8.7.3 Delivery of New Lease or Lease Modification. Upon the execution of any New Lease or Lease Modification, as applicable, Borrower shall deliver to Lender an executed copy of the Lease.

 8.7.4 Lease Amendments. Borrower agrees that it shall not have the right or power, as against Lender without its
consent, to cancel, abridge, amend or otherwise modify any Lease unless such modification complies with this Section 8.7. 
 8.7.5 Security Deposits. All security or other deposits of Tenants of the Property shall be treated as trust funds and shall, if required by law or the applicable Lease not be commingled with any other funds of
Borrower, and such deposits shall be deposited, upon receipt of the same by Borrower in a separate trust account maintained by Borrower expressly for such purpose. Within ten (10) Business Days after written request by Lender, Borrower shall
furnish to Lender reasonably satisfactory evidence of compliance with this Section 8.7.5, together with a statement of all lease securities deposited with Borrower by the Tenants and the location and account number of the account in
which such security deposits are held. 
 8.7.6 No Default Under Leases. Borrower shall (i) promptly perform and
observe all of the material terms, covenants and conditions required to be performed and observed by Borrower under the Leases, if the failure to perform or observe the same would have a Material Adverse Effect; (ii) exercise, within ten
(10) Business Days after a written request by Lender, any right to request from the Tenant under any Lease a certificate with respect to the status thereof and (iii) not collect any of the Rents, more than one (1) month in advance
(except that Borrower may collect such security deposits and last month’s Rents as are permitted by Legal Requirements and are commercially reasonable in the prevailing market and collect other charges in accordance with the terms of each
Lease). 
 8.7.7 Subordination. All Lease Modifications and New Leases entered into by Borrower after the date hereof
shall by their express terms be subject and subordinate to this Agreement and the Security Instrument (through a subordination provision contained in such Lease or otherwise) and shall provide that, if Lender agrees to a non-disturbance provision
pursuant to Section 8.7.9, the Person holding any rights thereunder shall attorn to Lender or any other Person succeeding to the interests of Lender upon the exercise of its remedies hereunder or any transfer in lieu thereof on the terms
set forth in this Section 8.7. 
  

 89 

 8.7.8 Attornment. Each Lease Modification and New Lease entered into from and after
the date hereof shall provide that in the event of the enforcement by Lender of any remedy under this Agreement or the Security Instrument, if Lender agrees to a non-disturbance provision pursuant to Section 8.7.9, the Tenant under such
Lease shall, at the option of Lender or of any other Person succeeding to the interest of Lender as a result of such enforcement, attorn to Lender or to such Person and shall recognize Lender or such successor in the interest as lessor under such
Lease without change in the provisions thereof; provided, however, Lender or such successor in interest shall not be liable for or bound by (i) any payment of an installment of rent or additional rent made more than thirty
(30) days before the due date of such installment, (ii) any act or omission of or default by Borrower under any such Lease (but the Lender, or such successor, shall be subject to the continuing obligations of the landlord to the extent
arising from and after such succession to the extent of Lender’s, or such successor’s, interest in the Property), (iii) any credits, claims, setoffs or defenses which any Tenant may have against Borrower, (iv) any obligation on
Borrower’s part, pursuant to such Lease, to perform any tenant improvement work or (v) any obligation on Borrower’s part, pursuant to such Lease, to pay any sum of money to any Tenant. Each such New Lease shall also provide that, upon
the reasonable request by Lender or such successor in interest, the Tenant shall execute and deliver an instrument or instruments confirming such attornment. 
 8.7.9 Non-Disturbance Agreements. Lender shall enter into, and, if required by applicable law to provide constructive notice or requested by a Tenant, record in the county where the subject
Property is located, a subordination, attornment and non-disturbance agreement, substantially in form and substance substantially similar to the form attached hereto as Exhibit K (a “Non-Disturbance Agreement”),
with any Tenant (other than an Affiliate of Borrower) entering into a New Lease permitted hereunder or otherwise consented to by Lender within ten (10) Business Days after written request therefor by Borrower, provided that, such request is
accompanied by an Officer’s Certificate stating that such Lease complies in all material respects with this Section 8.7. All reasonable third party costs and expenses incurred by Lender in connection with the negotiation,
preparation, execution and delivery of any Non-Disturbance Agreement, including, without limitation, reasonable attorneys’ fees and disbursements, shall be paid by Borrower (in advance, if requested by Lender). 
 Section 8.8 Exchange. Notwithstanding anything to the contrary herein contained or in any other Loan Document, any sale or
transfer of any or all of the indirect interests in Borrower owned by Qualified Intermediary to Guarantor or one or more entities (i) controlled directly or indirectly by Guarantor, and (ii) in which Guarantor owns, directly or indirectly,
not less than 85% equity, is permitted provided the following conditions have been satisfied: 
 (a) in the event that in connection with such
sale or conveyance, Manager will not thereafter continue to manage the Property, then the Person who will manage the Property following such sale or conveyance must be an Acceptable Manager; 
  

 90 

 (b) such sale or transfer occurs not later than one hundred eighty (180) days after the Closing
Date; 
 (c) Lender shall have received not less than ten (10) days’ prior written notice of such sale or transfer; 
 (d) after giving effect to such sale or transfer, Borrower will be in compliance with the requirements of this Agreement and the Security Instrument;

 (e) after giving effect to such sale or transfer, any subsidiary of any of the Co-Borrowers or Prime Lessees or Operating Lessee must be a
Single Purpose Entity. 
 (f) Lender shall have received such other documents, instruments, certificates and legal opinions (including,
without limitation, Non-Consolidation Opinions) as Lender may reasonably require so as to confirm the requirements of Section 8.8 have been satisfied; 
 (g) Borrower agrees to bear and shall reimburse Lender on demand all reasonable out-of-pocket expenses incurred by Lender in connection with any transaction described in this Section 8.8; and 

(h) Simultaneously with the consummation of the Exchange, the Prime Lease shall be terminated. 
 IX. INTEREST RATE CAP AGREEMENT 
 Section 9.1 Interest Rate Cap Agreement. Borrower shall maintain the Interest Rate Cap Agreement with an Acceptable Counterparty in effect and having a term extending through the last day of the accrual period in
which the applicable Maturity Date occurs, and an initial notional amount equal to the Loan Amount. The Interest Rate Cap Agreement shall have a strike rate equal to the LIBOR Cap Strike Rate. The notional amount of the Interest Rate Cap Agreement
may be reduced from time to time in amounts equal to any prepayment of the principal of the Loan made in accordance with the Loan Documents, provided that the strike rate shall be equal to the LIBOR Cap Strike Rate. 
 Section 9.2 Pledge and Collateral Assignment. Borrower hereby pledges, assigns, transfers, delivers and grants a continuing
first priority lien to Lender, as security for payment of all sums due in respect of the Loan and the performance of all other terms, conditions and covenants of this Agreement and any other Loan Document on Borrower’s part to be paid and
performed, in, to and under all of Borrower’s right, title and interest whether now owned or hereafter acquired and whether now existing or hereafter arising (collectively, the “Rate Cap Collateral”): (i) in the
Interest Rate Cap Agreement (as soon as such agreement is effective or when and if any replacement agreement becomes effective, any Replacement Interest Rate Cap Agreement or Extension Interest Rate Cap Agreement); (ii) to receive any and all
payments under the Interest Rate Cap Agreement (or, when and if any such agreement becomes effective, any Replacement Interest Rate Cap Agreement or Extension Interest Rate Cap Agreement), whether as contractual obligations, damages or otherwise;
and (iii) to all claims, rights, powers, privileges, authority, options, security interests, liens and remedies, if any, under or arising out of the Interest Rate Cap Agreement (as soon as such 
  

 91 

 agreement is effective or when and if any such agreement becomes effective, any Replacement Interest Rate Cap Agreement
or Extension Interest Rate Cap Agreement), in each case including all accessions and additions to, substitutions for and replacements, products and proceeds of any of the foregoing. Borrower shall deliver to Lender an executed counterpart of such
Interest Rate Cap Agreement, Replacement Interest Rate Cap Agreement or Extension Interest Rate Cap Agreement (which shall, by its terms, authorize the assignment to Lender and require that payments be made directly to Lender) and notify the
Counterparty of such assignment (either in such Interest Rate Cap Agreement, Replacement Interest Rate Cap Agreement or Extension Interest Rate Cap Agreement or by separate instrument). Borrower shall not, without obtaining the prior written consent
of Lender, further pledge, transfer, deliver, assign or grant any security interest in the Interest Rate Cap Agreement (or, when and if any such agreement becomes effective, any Replacement Interest Rate Cap Agreement or Extension Interest Rate Cap
Agreement), or permit any Lien or encumbrance to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements or any other notice or instrument as may be required under the UCC, as appropriate, except those naming Lender as the
secured party, to be filed with respect thereto. 
 Section 9.3 Covenants. (a) Borrower shall comply with all of
its obligations under the terms and provisions of the Interest Rate Cap Agreement. All amounts paid by the Counterparty under the Interest Rate Cap Agreement to Borrower or Lender shall be deposited immediately into the Holding Account pursuant to
Section 3.1. Borrower shall take all actions reasonably requested by Lender to enforce Borrower’s rights under the Interest Rate Cap Agreement in the event of a default by the Counterparty thereunder and shall not waive, amend or
otherwise modify any of its rights thereunder. 
 (b) Borrower shall defend Lender’s right, title and interest in and to the Rate Cap
Collateral pledged by Borrower pursuant hereto or in which it has granted a security interest pursuant hereto against the claims and demands of all other Persons. 
 In the event of (x) any downgrade, withdrawal or qualification (each, a “Downgrade”) of the rating of the Counterparty such that, thereafter, the Counterparty shall cease to be an
Acceptable Counterparty and (y) the Counterparty shall fail to comply with the requirements contained in the Interest Rate Cap Agreement which are described in “Exhibit I” upon such occurrence, the Borrower shall either
(i) obtain a Rating Agency Confirmation with respect to the Counterparty or (ii) replace the Interest Rate Cap Agreement with a Replacement Interest Cap Agreement, (x) having a term extending through the end of the Interest Period in
which the Maturity Date occurs, (y) in a notional amount at least equal to the Principal Amount of the Loan then outstanding, and (z) having a strike rate equal to the LIBOR Cap Strike Rate. 
 (c) In the event that Borrower fails to purchase and deliver to Lender the Interest Rate Cap Agreement as and when required hereunder, Lender may
purchase the Interest Rate Cap Agreement and the cost incurred by Lender in purchasing the Interest Rate Cap Agreement shall be paid by Borrower to Lender with interest thereon at the Default Rate from the date such cost was incurred by Lender until
such cost is paid by Borrower to Lender. 
 (d) Borrower shall not (i) without the prior written consent of Lender, modify, amend or
supplement the terms of the Interest Rate Cap Agreement, (ii) without the prior written consent of Lender, except in accordance with the terms of the Interest Rate Cap Agreement, 
  

 92 

 cause the termination of the Interest Rate Cap Agreement prior to its stated maturity date, (iii) without the prior
written consent of Lender, except as aforesaid, waive or release any obligation of the Counterparty (or any successor or substitute party to the Interest Rate Cap Agreement) under the Interest Rate Cap Agreement, (iv) without the prior written
consent of Lender, consent or agree to any act or omission to act on the part of the Counterparty (or any successor or substitute party to the Interest Rate Cap Agreement) which, without such consent or agreement, would constitute a default under
the Interest Rate Cap Agreement, (v) fail to exercise promptly and diligently each and every material right which it may have under the Interest Rate Cap Agreement, (vi) take or intentionally omit to take any action or intentionally suffer
or permit any action to be omitted or taken, the taking or omission of which would result in any right of offset against sums payable under the Interest Rate Cap Agreement or any defense by the Counterparty (or any successor or substitute party to
the Interest Rate Cap Agreement) to payment or (vii) fail to give prompt notice to Lender of any notice of default given by or to Borrower under or with respect to the Interest Rate Cap Agreement, together with a complete copy of such notice.
If Borrower shall have received written notice that the Securitization shall have occurred, no consent by Lender provided for in this Section 9.3(e) shall be given by Lender unless Lender shall have received a Rating Agency Confirmation.

 In connection with an Interest Rate Cap Agreement, Borrower shall obtain and deliver to Lender an Opinion of Counsel from counsel (which
counsel may be in-house counsel for the Counterparty) for the Counterparty upon which Lender and its successors and assigns may rely (the “Counterparty Opinion”), under New York law and, if the Counterparty is a non-U.S.
entity, the applicable foreign law, substantially in compliance with the requirements set forth in Exhibit F or in such other form approved by the Lender. 
 Section 9.4 Representations and Warranties. Borrower hereby covenants with, and represents and warrants to, Lender as follows: 
 (a) The Interest Rate Cap Agreement constitutes the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with its
terms, subject only to applicable bankruptcy, insolvency and similar laws affecting rights of creditors generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in
equity or at law). 
 (b) The Rate Cap Collateral is free and clear of all claims or security interests of every nature whatsoever, except
such as are created pursuant to this Agreement and the other Loan Documents, and Borrower has the right to pledge and grant a security interest in the same as herein provided without the consent of any other Person other than any such consent that
has been obtained and is in full force and effect. 
 (c) The Rate Cap Collateral has been duly and validly pledged hereunder. All consents
and approvals required to be obtained by Borrower for the consummation of the transactions contemplated by this Agreement have been obtained. 
 (d) Giving effect to the aforesaid grant and assignment to Lender, Lender has, as of the date of this Agreement, and as to Rate Cap Collateral acquired from time to time after such date, shall have, a valid, and upon proper filing,
perfected and continuing first priority lien 
  

 93 

 upon and security interest in the Rate Cap Collateral; provided that no representation or warranty is made with respect
to the perfected status of the security interest of Lender in the proceeds of Rate Cap Collateral consisting of “cash proceeds” or “non-cash proceeds” as defined in the UCC except if, and to the extent, the provisions of
Section 9-306 of the UCC shall be complied with. 
 (e) Except for financing statements filed or to be filed in favor of Lender as
secured party, there are no financing statements under the UCC covering any or all of the Rate Cap Collateral and Borrower shall not, without the prior written consent of Lender, until payment in full of all of the Obligations, execute and file in
any public office, any enforceable financing statement or statements covering any or all of the Rate Cap Collateral, except financing statements filed or to be filed in favor of Lender as secured party. 
 Section 9.5 Payments. If Borrower at any time shall be entitled to receive any payments with respect to the Interest Rate Cap
Agreement, such amounts shall, immediately upon becoming payable to Borrower, be deposited by Counterparty into the Holding Account. 
 Section 9.6 Remedies. Subject to the provisions of the Interest Rate Cap Agreement, if an Event of Default shall occur and then be continuing: 
 (a) Lender, without obligation to resort to any other security, right or remedy granted under any other agreement or instrument, shall have the right to,
in addition to all rights, powers and remedies of a secured party pursuant to the UCC, at any time and from time to time, sell, resell, assign and deliver, in its sole discretion, any or all of the Rate Cap Collateral (in one or more parcels and at
the same or different times) and all right, title and interest, claim and demand therein and right of redemption thereof, at public or private sale, for cash, upon credit or for future delivery, and in connection therewith Lender may grant options
and may impose reasonable conditions such as requiring any purchaser to represent that any “securities” constituting any part of the Rate Cap Collateral are being purchased for investment only, Borrower hereby waiving and releasing any and
all equity or right of redemption to the fullest extent permitted by the UCC or applicable law. If all or any of the Rate Cap Collateral is sold by Lender upon credit or for future delivery, Lender shall not be liable for the failure of the
purchaser to purchase or pay for the same and, in the event of any such failure, Lender may resell such Rate Cap Collateral. It is expressly agreed that Lender may exercise its rights with respect to less than all of the Rate Cap Collateral, leaving
unexercised its rights with respect to the remainder of the Rate Cap Collateral, provided, however, that such partial exercise shall in no way restrict or jeopardize Lender’s right to exercise its rights with respect to all or any
other portion of the Rate Cap Collateral at a later time or times. 
 (b) Lender may exercise, either by itself or by its nominee or
designee, in the name of Borrower, all of Lender’s rights, powers and remedies in respect of the Rate Cap Collateral, hereunder and under law. 
 (c) Borrower hereby irrevocably, in the name of Borrower or otherwise, authorizes and empowers Lender and assigns and transfers unto Lender, and constitutes and appoints Lender its true and lawful attorney-in-fact, and as its agent,
irrevocably, with full power of substitution for Borrower and in the name of Borrower, upon the occurrence and during the continuance of an Event of Default, (i) to exercise and enforce every right, power, remedy, 
  

 94 

 authority, option and privilege of Borrower under the Interest Rate Cap Agreement, including any power to subordinate or
modify the Interest Rate Cap Agreement (but not, unless an Event of Default exists and is continuing, the right to terminate or cancel the Interest Rate Cap Agreement), or to give any notices, or to take any action resulting in such subordination,
termination, cancellation or modification and (ii) in order to more fully vest in Lender the rights and remedies provided for herein, to exercise all of the rights, remedies and powers granted to Lender in this Agreement, and Borrower further
authorizes and empowers Lender, as Borrower’s attorney-in-fact, and as its agent, irrevocably, with full power of substitution for Borrower and in the name of Borrower, upon the occurrence and during the continuance of an Event of Default, to
give any authorization, to furnish any information, to make any demands, to execute any instruments and to take any and all other action on behalf of and in the name of Borrower which in the opinion of Lender may be necessary or appropriate to be
given, furnished, made, exercised or taken under the Interest Rate Cap Agreement, in order to comply therewith, to perform the conditions thereof or to prevent or remedy any default by Borrower thereunder or to enforce any of the rights of Borrower
thereunder. These powers-of-attorney are irrevocable and coupled with an interest, and any similar or dissimilar powers heretofore given by Borrower in respect of the Rate Cap Collateral to any other Person are hereby revoked. 
 (d) Upon the occurrence and during the continuance of an Event of Default, Lender may, without notice to, or assent by, Borrower or any other Person (to
the extent permitted by law), but without affecting any of the Obligations, in the name of Borrower or in the name of Lender, notify the Counterparty, or if applicable, any other counterparty to the Interest Rate Cap Agreement, to make payment and
performance directly to Lender; extend the time of payment and performance of, compromise or settle for cash, credit or otherwise, and upon any terms and conditions, any obligations owing to Borrower, or claims of Borrower, under the Interest Rate
Cap Agreement; file any claims, commence, maintain or discontinue any actions, suits or other proceedings deemed by Lender necessary or advisable for the purpose of collecting upon or enforcing the Interest Rate Cap Agreement; and execute any
instrument and do all other things deemed necessary and proper by Lender to protect and preserve and realize upon the Rate Cap Collateral and the other rights contemplated hereby. 
 (e) Pursuant to the powers-of-attorney provided for above, Lender may take any action and exercise and execute any instrument which it may deem necessary
or advisable to accomplish the purposes hereof; provided, however, that Lender shall not be permitted to take any action pursuant to said power-of-attorney that would conflict with any limitation on Lender’s rights with respect to
the Rate Cap Collateral. Without limiting the generality of the foregoing, Lender, after the occurrence of an Event of Default, shall have the right and power to receive, endorse and collect all checks and other orders for the payment of money made
payable to Borrower representing: (i) any payment of obligations owed pursuant to the Interest Rate Cap Agreement, (ii) interest accruing on any of the Rate Cap Collateral or (iii) any other payment or distribution payable in respect
of the Rate Cap Collateral or any part thereof, and for and in the name, place and stead of Borrower, to execute endorsements, assignments or other instruments of conveyance or transfer in respect of any property which is or may become a part of the
Rate Cap Collateral hereunder. 
 (f) Lender may exercise all of the rights and remedies of a secured party under the UCC. 
  

 95 

 (g) Without limiting any other provision of this Agreement or any of Borrower’s rights hereunder,
and without waiving or releasing Borrower from any obligation or default hereunder, Lender shall have the right, but not the obligation, to perform any act or take any appropriate action, as it, in its reasonable judgment, may deem necessary to
protect the security of this Agreement, to cure such Event of Default or to cause any term, covenant, condition or obligation required under this Agreement or the Interest Rate Cap Agreement to be performed or observed by Borrower to be promptly
performed or observed on behalf of Borrower. All amounts advanced by, or on behalf of, Lender in exercising its rights under this Section 9.7(g) (including, but not limited to, reasonable legal expenses and disbursements incurred in
connection therewith), together with interest thereon at the Default Rate from the date of each such advance, shall be payable by Borrower to Lender upon demand and shall be secured by this Agreement. 
 Section 9.7 Sales of Rate Cap Collateral. No demand, advertisement or notice, all of which are, to the fullest
extent permitted by law, hereby expressly waived by Borrower, shall be required in connection with any sale or other disposition of all or any part of the Rate Cap Collateral, except that Lender shall give Borrower at least thirty (30) Business
Days’ prior written notice of the time and place of any public sale or of the time when and the place where any private sale or other disposition is to be made, which notice Borrower hereby agrees is reasonable, all other demands,
advertisements and notices being hereby waived. To the extent permitted by law, Lender shall not be obligated to make any sale of the Rate Cap Collateral if it shall determine not to do so, regardless of the fact that notice of sale may have been
given, and Lender may without notice or publication adjourn any public or private sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned. Upon each private sale of the Rate Cap Collateral of
a type customarily sold in a recognized market and upon each public sale, unless prohibited by any applicable statute which cannot be waived, Lender (or its nominee or designee) may purchase any or all of the Rate Cap Collateral being sold, free and
discharged from any trusts, claims, equity or right of redemption of Borrower, all of which are hereby waived and released to the extent permitted by law, and may make payment therefor by credit against any of the Obligations in lieu of cash or any
other obligations. In the case of all sales of the Rate Cap Collateral, public or private, Borrower shall pay all reasonable costs and expenses of every kind for sale or delivery, including brokers’ and attorneys’ fees and disbursements
and any tax imposed thereon. However, the proceeds of sale of Rate Cap Collateral shall be available to cover such costs and expenses, and, after deducting such costs and expenses from the proceeds of sale, Lender shall apply any residue to the
payment of the Obligations in the order of priority as set forth in Section 11 of the Security Instrument. 
 Section 9.8
Public Sales Not Possible. Borrower acknowledges that the terms of the Interest Rate Cap Agreement may prohibit public sales, that the Rate Cap Collateral may not be of the type appropriately sold at public sales, and
that such sales may be prohibited by law. In light of these considerations, Borrower agrees that private sales of the Rate Cap Collateral shall not be deemed to have been made in a commercially unreasonably manner by mere virtue of having been made
privately. 
 Section 9.9 Receipt of Sale Proceeds. Upon any sale of the Rate Cap Collateral by
Lender hereunder (whether by virtue of the power of sale herein granted, pursuant to judicial process or otherwise), the receipt by Lender or the officer making the sale or 
  

 96 

 the proceeds of such sale shall be a sufficient discharge to the purchaser or purchasers of the Rate Cap Collateral so
sold, and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to Lender or such officer or be answerable in any way for the misapplication or non-application thereof. 

Section 9.10 Extension Interest Rate Cap Agreement. If Borrower exercises any of its options to extend the Maturity Date
pursuant to Section 5 of the Note, then, on or prior to the Maturity Date being extended, the Borrower shall obtain or have in place an Extension Interest Rate Cap Agreement (i) having a term through the end of the Interest Period
in which the extended Maturity Date occurs, (ii) in a notional amount at least equal to the Principal Amount of the Loan as of the Maturity Date being extended, and (iii) having a strike rate equal to an amount such that the maximum
interest rate paid by the Borrower after giving effect to payments made under such Extension Interest Rate Cap Agreement shall equal no more than the LIBOR Cap Strike Rate. 
 Section 9.11 Filing of Financing Statements Authorized. Borrower and Operating Lessee hereby authorize the filing of a form
UCC-1 financing statement naming the Borrower and the Operating Lessee as debtors and the Lender as secured party in any office (including the office of the Secretary of State of the State of Delaware) covering all property of the Borrower and the
Operating Lessee (including, but not limited to, the Account Collateral and the Rate Cap Collateral, but excluding Excess Cash Flow). 
 X. MAINTENANCE OF PROPERTY; ALTERATIONS 
 Section 10.1 Maintenance of Property. Borrower
shall keep and maintain, or cause to be kept and maintained, the Property and every part thereof in good condition and repair, subject to ordinary wear and tear, and, subject to Excusable Delays and the provisions of this Agreement with respect to
damage or destruction caused by a Casualty or Condemnation, shall not permit or commit any waste, impairment, or deterioration of any portion of the Property in any material respect. Borrower further covenants to do all other acts which from the
character or use of the Property may be reasonably necessary to protect the security hereof, the specific enumerations herein not excluding the general. Borrower shall not demolish any Improvement on the Property except as the same may be necessary
in connection with an Alteration or a restoration in connection with a Condemnation or Casualty, or as otherwise permitted herein, in each case in accordance with the terms and conditions hereof. 
 Section 10.2 Alterations and Expansions. Borrower shall not perform or undertake or consent to the performance or undertaking
of any Alteration or Expansion, except in accordance with the following terms and conditions: 
 (a) The Alteration or Expansion shall be
undertaken in accordance with the applicable provisions of this Agreement, the other Loan Documents, the Leases and all Legal Requirements. 
 (b) No Event of Default shall have occurred and be continuing or shall occur as a result of such action. 
  

 97 

 (c) A Material Alteration or Material Expansion, to the extent architects are customarily used for
alterations or expansions of those types, but including any structural change to any of the Property or the Improvements, shall be conducted under the supervision of an Independent Architect and shall not be undertaken until ten (10) Business
Days after there shall have been filed with Lender, for information purposes only and not for approval by Lender, detailed plans and specifications and cost estimates therefor, prepared and approved in writing by such Independent Architect. Such
plans and specifications may be revised at any time and from time to time, provided that revisions of such plans and specifications shall be filed with Lender, for information purposes only. 
 (d) The Alteration or Expansion may not in and of itself, either during the Alteration or Expansion or upon completion, be reasonably expected to have a
Material Adverse Effect with respect to the Property. 
 (e) All work done in connection with any Alteration or Expansion shall be performed
with due diligence to Final Completion in a good and workmanlike manner, all materials used in connection with any Alteration or Expansion shall be not less than the standard of quality of the materials generally used at the Property as of the date
hereof (or, if greater, the then-current customary quality in the sub-market in which the Property is located) and all work shall be performed and all materials used in accordance with all applicable Legal Requirements and Insurance Requirements.

 (f) The cost of any Alteration or Expansion shall be promptly and fully paid for by Borrower, subject to the next succeeding sentence. No
payment made prior to the Final Completion (excluding punch-list items) of an Alteration or Expansion or Restoration to any contractor, subcontractor, materialman, supplier, engineer, architect, project manager or other Person who renders services
or furnishes materials in connection with such Alteration shall exceed ninety percent (90%) of the aggregate value of the work performed by such Person from time to time and materials furnished and incorporated into the Improvements.

 (g) Intentionally Deleted. 
 (h) With respect to any Material Alteration or Material Expansion: 
 (i) Borrower shall have delivered to
Lender Eligible Collateral in an amount equal to at least the total estimated remaining unpaid costs of such Material Alteration or Material Expansion which is in excess of the Threshold Amount, which Eligible Collateral shall be held by Lender as
security for the Indebtedness and released to Borrower as such work progresses in accordance with Section 10.2(h)(iii); provided, however, in the event that any Material Alteration or Material Expansion shall be made in
conjunction with any Restoration with respect to which Borrower shall be entitled to use or apply Proceeds pursuant to Section 6.2 hereof (including any Proceeds remaining after completion of such Restoration), the amount of the Eligible
Collateral to be furnished pursuant hereto need not exceed the aggregate cost of such Restoration and such Material Alteration or Material Expansion (in either case, as estimated by the Independent Architect) less the sum of the amount of any
Proceeds which the Borrower is entitled to withdraw pursuant to Section 6.2 hereof and the Threshold Amount; 
  

 98 

 (ii) Prior to commencement of construction of such Material Alteration or Material Expansion, Borrower
shall deliver to Lender a schedule (with the concurrence of the Independent Architect) setting forth the projected stages of completion of such Alteration or Expansion and the corresponding amounts expected to be due and payable by or on behalf of
Borrower in connection with such completion, such schedule to be updated quarterly by Borrower (and with the concurrence of the Independent Architect) during the performance of such Alteration or Expansion. 
 (iii) Any Eligible Collateral that a Borrower delivers to Lender pursuant hereto (and the proceeds of any such Eligible Collateral) shall be invested
(to the extent such Eligible Collateral can be invested) by Lender in Permitted Investments for a period of time consistent with the date on which the Borrower notifies Lender that the Borrower expects to request a release of such Eligible
Collateral in accordance with the next succeeding sentence. From time to time as the Alteration or Expansion progresses, the amount of any Eligible Collateral so furnished may, upon the written request of Borrower to Lender, be withdrawn by Borrower
and paid or otherwise applied by or returned to Borrower in an amount equal to the amount Borrower would be entitled to so withdraw if Section 6.2.4 were applicable, and any Eligible Collateral so furnished which is a Letter of Credit
may be reduced by Borrower in an amount equal to the amount Borrower would be entitled to so reduce if Section 6.2.4 hereof were applicable, subject, in each case, to the satisfaction of the conditions precedent to withdrawal of funds or
reduction of the Letter of Credit set forth in Section 6.2.4 hereof. In connection with the above-described quarterly update of the projected stages of completion of the Material Alteration or Material Expansion (as concurred with by an
Independent Architect), Borrower shall increase (or be permitted to decrease, as applicable) the Eligible Collateral then deposited with Lender as necessary to comply with Section 10.2(h)(i) hereof. 
 (iv) At any time after Final Completion of such Material Alterations or Material Expansions, the whole balance of any Cash deposited with Lender
pursuant to Section 10.2(h) hereof then remaining on deposit may be withdrawn by Borrower and shall be paid by Lender to Borrower, and any Eligible Collateral so deposited shall, to the extent it has not been called upon, reduced or
theretofore released, be released by Lender to Borrower, within ten (10) days after receipt by Lender of an application for such withdrawal and/or release together with an Officer’s Certificate, and as to the following clauses (A) and
(B) of this clause also a certificate of the Independent Architect, setting forth in substance as follows: 
 (A) that such Material
Alteration(s) or Material Expansion(s) has been completed in all material respects in accordance with any plans and specifications therefor previously filed with Lender under Section 10.2(c) hereof; 
 (B) that to the knowledge of the certifying Person, (x) such Material Alteration(s) or Material Expansion(s) has been completed in compliance with
all Legal Requirements, and (y) to the extent required for the legal use or occupancy of the portion of the Property affected by such Alteration(s) or Expansion(s), the applicable Borrower has obtained a temporary or permanent certificate of
occupancy (or similar certificate) or, if no such certificate is required, a statement to that effect; 
  

 99 

 (C) that to the knowledge of the certifying Person, all amounts that a Borrower is or may become liable
to pay in respect of such Material Alteration(s) or Material Expansion(s) through the date of the certification have been paid in full or adequately provided for and, to the extent that such are customary and reasonably obtainable by prudent
property owners in the area where the applicable Property is located, that Lien waivers have been obtained from the general contractor and subcontractors performing such Alteration(s) or Expansion(s) or at its sole cost and expense, Borrower shall
cause a nationally recognized title insurance company to deliver to Lender an endorsement to the Title Policy, updating such policy and insuring over such Liens without further exceptions to such policy other than Permitted Encumbrances, or shall,
at its sole cost and expense, cause a reputable title insurance company to deliver a lender’s title insurance policy, in such form, in such amounts and with such endorsements as the Title Policy, which policy shall be dated the date of
completion of the Material Alteration and shall contain no exceptions other than Permitted Encumbrances; provided, however, that if, for any reason, Borrower are unable to deliver the certification required by this clause (C) with
respect to any costs or expenses relating to the Alteration(s) or Expansion(s), then, assuming Borrower are able to satisfy each of the other requirements set forth in clauses (A) and (B) above, Borrower shall be entitled to the release of
the difference between the whole balance of such Eligible Collateral and the total of all costs and expenses to which Borrower are unable to certify; and 
 (D) that to the knowledge of the certifying Person, no Event of Default has occurred and is continuing. 
 XI. BOOKS AND RECORDS, FINANCIAL STATEMENTS, REPORTS AND OTHER INFORMATION 
 Section 11.1 Books and
Records. Borrower shall keep and maintain on a fiscal year basis proper books and records separate from any other Person, in which accurate and complete entries shall be made of all dealings or transactions of or in relation to the
Note, the Property and the business and affairs of Borrower relating to the Property which shall reflect all items of income and expense in connection with the operation on an individual basis of the Property and in connection with any services,
equipment or furnishings provided in connection with the operation of the Property, in accordance with GAAP. Lender and its authorized representatives shall have the right at reasonable times and upon reasonable notice to examine the books and
records of Borrower relating to the operation of the Property and to make such copies or extracts thereof as Lender may reasonably require. 
 Section 11.2 Financial Statements. 
 11.2.1 Monthly Reports. At the
request of Lender, Borrower shall furnish to Lender, within thirty (30) days after the end of each calendar month, unaudited operating statements, aged accounts receivable reports, rent rolls, STAR Reports and PACE Reports; occupancy and ADR
reports for the Property, in each case accompanied by an Officer’s Certificate certifying (i) with respect to the operating statements, that to the Best of Borrower’s Knowledge and the best of such officer’s knowledge such
statements are true, correct, accurate and complete and fairly present the results of the operations of Borrower and the Property, and (ii) with respect to the aged accounts receivable reports, rent rolls, occupancy and ADR reports, 

 

 100 

 that such items are to the Best of Borrower’s Knowledge and the best of such officer’s knowledge true, correct
and accurate and fairly present the results of the operations of Borrower and the Property. Borrower will also provide Lender copies of all flash reports within its possession as to monthly revenues of the Property upon request. 
 11.2.2 Quarterly Reports. Borrower will furnish, or cause to be furnished, to Lender on or before the forty-fifth (45th) day after the end of each Fiscal Quarter, the following items, accompanied by an Officer’s Certificate, certifying
that to the Best of Borrower’s Knowledge and the best of such officer’s knowledge such items are true, correct, accurate and complete and fairly present the financial condition and results of the operations of Borrower and the Property in
a manner consistent with GAAP (subject to normal periodic adjustments) to the extent applicable: 
 (a) quarterly and year to date financial
statements prepared for such fiscal quarter with respect to the Borrower, including a balance sheet and operating statement for such quarter for the Borrower for such quarter; 
 (b) occupancy levels at the Property for such period, including average daily room rates and the average revenue per available room; 
 (c) concurrently with the provision of such reports, Borrower shall also furnish a report of Operating Income and Operating Expenses (as well as a
calculation of Net Operating Income based thereon) with respect to the Borrower and the Property for the most recently completed quarter; 
 (d) a STAR Report and to the extent provided by Manager a PACE Report for the most recently completed quarter; 
 (e) a calculation
of DSCR for the trailing four (4) Fiscal Quarters (beginning with the trailing four (4) quarters ending September 30, 2007); and 
 (f) to the extent provided by Manager a report of aged accounts receivable relating to the Property as of the most recently completed quarter and a list of Security Deposits and the aggregate amount of all Security Deposits. 
 11.2.3 Annual Reports. Borrower shall furnish to Lender within ninety (90) days following the end of each Fiscal Year a
complete copy of the annual financial statements of the Borrower, audited by a “Big Four” accounting firm or another independent certified public accounting firm acceptable to Lender in accordance with GAAP for such Fiscal Year and
containing a balance sheet, a statement of operations and a statement of cash flows. The annual financial statements of the Borrower shall be accompanied by (i) an Officer’s Certificate certifying that each such annual financial statement
presents fairly, in all material respects, the financial condition and results of operation of the Property and has been prepared in accordance with GAAP and (ii) a management report, in form and substance reasonably satisfactory to Lender,
discussing the reconciliation between the financial statements for such Fiscal Year and the most recent Budget. Together with the Borrower’s annual financial statements, the Borrower shall furnish to Lender (A) an Officer’s
Certificate certifying as of the date thereof whether, to Borrower’s knowledge, there exists a Default or Event of Default, and if 
  

 101 

 such Default or 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) an annual report, for the most recently completed fiscal year, containing: 
  

	 	(1)	Capital Expenditures (including for this purpose any and all additions to, and replacements of, FF&E,) made in respect of the Property, including separate line items with
respect to any project costing in excess of $500,000; 

  

	 	(2)	occupancy levels for the Property for such period; and 

  

	 	(3)	average daily room rates at the Property for such period. 

 11.2.4 Leasing Reports. Not later than forty-five (45) days after the end of each fiscal quarter of Borrower’s operations, Borrower shall deliver to Lender a true and complete rent roll for the Property, dated
as of the last month of such fiscal quarter, showing the percentage of gross leasable area of the Property, if any, leased as of the last day of the preceding calendar quarter, the current annual rent for the Property, the expiration date of each
Lease, whether to Borrower’s knowledge any portion of the Property has been sublet, and if it has, the name of the subtenant, and such rent roll shall be accompanied by an Officer’s Certificate certifying that such rent roll is true,
correct and complete in all material respects as of its date and stating whether Borrower, within the past three (3) months, has issued a notice of default with respect to any Lease which has not been cured and the nature of such default.

 11.2.5 Management Agreement. Borrower shall deliver to Lender, within ten (10) Business Days of the receipt
thereof by Borrower, a copy of all reports prepared by Manager pursuant to the Management Agreement, including, without limitation, the Budget and any inspection reports. 
 11.2.6 Budget. Not later than March 1st of each Fiscal Year hereafter, Borrower shall prepare or cause to be prepared and deliver to Lender, for informational purposes only, a Budget in respect of the Property for the Fiscal Year in which
such delivery date falls. If Borrower subsequently amends the Budget, Borrower shall promptly deliver the amended Budget to Lender. 
 11.2.7 Other Information. Borrower shall, promptly after written request by Lender or, if a Securitization shall have occurred, the Rating Agencies, furnish or cause to be furnished to Lender, in such manner and in such
detail as may be reasonably requested by Lender, such reasonable additional information as may be reasonably requested with respect to the Property. The information required to be furnished by Borrower to Lender under this Section 11.2
shall be provided in both hard copy format and electronic format; provided that Borrower shall only be required to provide the information required under this Section 11.2.7 in electronic format if such information is so available
in the ordinary course of the operations of the Borrower and Manager and without significant expense. 
  

 102 

 XII. ENVIRONMENTAL MATTERS 
 Section 12.1 Representations. Borrower hereby represents and warrants that except as set forth in the environmental reports and
studies delivered to Lender (the “Environmental Reports”), (i) Borrower has not engaged in or knowingly permitted any operations or activities upon, or any use or occupancy of the Property, or any portion thereof, for
the purpose of or in any way involving the handling, manufacture, treatment, storage, use, generation, release, discharge, refining, dumping or disposal of any Hazardous Materials on, under, in or about the Property, or transported any Hazardous
Materials to, from or across the Property, except in all cases in material compliance with Environmental Laws and only in the course of legitimate business operations at the Property; (ii) to the Best of Borrower’s Knowledge, no tenant,
occupant or user of the Property, or any other Person, has engaged in or permitted any operations or activities upon, or any use or occupancy of the Property, or any portion thereof, for the purpose of or in any material way involving the handling,
manufacture, treatment, storage, use, generation, release, discharge, refining, dumping or disposal of any Hazardous Materials on, in or about the Property, or transported any Hazardous Materials to, from or across the Property, except in all cases
in material compliance with Environmental Laws and only in the course of legitimate business operations at the Property; (iii) to the Best of Borrower’s Knowledge, no Hazardous Materials are presently constructed, deposited, stored, or
otherwise located on, under, in or about the Property except in material compliance with Environmental Laws; (iv) to the Best of Borrower’s Knowledge, no Hazardous Materials have migrated from the Property upon or beneath other properties
which would reasonably be expected to result in material liability for Borrower; and (v) to the Best of Borrower’s Knowledge, no Hazardous Materials have migrated or threaten to migrate from other properties upon, about or beneath the
Property which would reasonably be expected to result in material liability for Borrower. 
 Section 12.2 Covenants. Compliance
with Environmental Laws. Subject to Borrower’s right to contest under Section 7.3, Borrower covenants and agrees with Lender that it shall comply with all Environmental Laws. If at any time during the continuance of the Lien
of the Security Instrument, a Governmental Authority having jurisdiction over the Property requires remedial action to correct the presence of Hazardous Materials in, around, or under the Property (an “Environmental Event”),
Borrower shall deliver prompt notice of the occurrence of such Environmental Event to Lender. Within thirty (30) days after Borrower has knowledge of the occurrence of an Environmental Event, Borrower shall deliver to Lender an Officer’s
Certificate (an “Environmental Certificate”) explaining the Environmental Event in reasonable detail and setting forth the proposed remedial action, if any. Borrower shall promptly provide Lender with copies of all notices
from any Governmental Authority which allege or identify any actual or potential violation or noncompliance received by or prepared by or for Borrower in connection with any Environmental Law. For purposes of this paragraph, the term
“notice” shall mean any summons, citation, directive, order, claim, pleading, letter, application, filing, report, findings, declarations or other materials provided by any Governmental Entity pertinent to compliance of the Property and
Borrower with such Environmental Laws. 
  

 103 

 Section 12.3 Environmental Reports. Upon the occurrence and during the
continuance of an Environmental Event with respect to the Property or an Event of Default, Lender shall have the right to direct Borrower to obtain consultants reasonably approved by Lender to perform a comprehensive environmental audit of the
Property. Such audit shall be conducted by an environmental consultant chosen by Lender and may include a visual survey, a record review, an area reconnaissance assessing the presence of hazardous or toxic waste or substances, PCBs or storage tanks
at the Property, an asbestos survey of the Property, which may include random sampling of the Improvements and air quality testing, and such further site assessments as Lender may reasonably require due to the results obtained from the foregoing.
Borrower grants Lender, its agents, consultants and contractors the right to enter the Property as reasonable or appropriate for the circumstances for the purposes of performing such studies and the reasonable cost of such studies shall be due and
payable by Borrower to Lender upon demand and shall be secured by the Lien of the Security Instrument. Lender shall not unreasonably interfere with, and Lender shall direct the environmental consultant to use its commercially reasonable efforts not
to hinder, Borrower’s or any Tenant’s, other occupant’s or Manager’s operations upon the Property when conducting such audit, sampling or inspections. By undertaking any of the measures identified in and pursuant to this
Section 12.3, Lender shall not be deemed to be exercising any control over the operations of Borrower or the handling of any environmental matter or hazardous wastes or substances of Borrower for purposes of incurring or being subject to
liability therefor. 
 Section 12.4 Environmental Indemnification. Borrower shall protect, indemnify, save, defend,
and hold harmless the Indemnified Parties from and against any and all liability, loss, damage, actions, causes of action, costs or expenses whatsoever (including reasonable attorneys’ fees and expenses) and any and all claims, suits and
judgments which any Indemnified Party may suffer, as a result of or with respect to: (a) any Environmental Claim relating to or arising from the Property; (b) the violation of any Environmental Law in connection with the Property;
(c) any release, spill, or the presence of any Hazardous Materials affecting the Property; and (d) the presence at, in, on or under, or the release, escape, seepage, leakage, discharge or migration at or from, the Property of any Hazardous
Materials, whether or not such condition was known or unknown to Borrower; provided that, in each case, Borrower shall be relieved of its obligation under this subsection if any of the matters referred to in clauses (a) through (d) above
did not occur (but need not have been discovered) prior to (1) the foreclosure of the Security Instrument, (2) the delivery by Borrower to Lender or its designee of a deed-in-lieu of foreclosure with respect to the Property, or
(3) Lender’s or its designee’s taking possession and control of the Property after the occurrence of an Event of Default hereunder. If any such action or other proceeding shall be brought against Lender, upon written notice from
Borrower to Lender (given reasonably promptly following Lender’s notice to Borrower of such action or proceeding), Borrower shall be entitled to assume the defense thereof, at Borrower’s expense, with counsel reasonably acceptable to
Lender; provided, however, Lender may, at its own expense, retain separate counsel to participate in such defense, but such participation shall not be deemed to give Lender a right to control such defense, which right Borrower
expressly retains. Notwithstanding the foregoing, each Indemnified Party shall have the right to employ separate counsel at Borrower’s expense if, in the reasonable opinion of legal counsel, a conflict or potential conflict exists between the
Indemnified Party and Borrower that would make such separate representation advisable. Borrower shall have no obligation to indemnify an Indemnified Party for damage or loss resulting from such Indemnified Party’s gross negligence or willful
misconduct. 
  

 104 

 Section 12.5 Recourse Nature of Certain Indemnifications. Notwithstanding
anything to the contrary provided in this Agreement or in any other Loan Document, the indemnification provided in Section 12.4 shall be fully recourse to Borrower (but not its constituent parties) and shall be independent of, and shall
survive, the discharge of the Indebtedness, the release of the Lien created by the Security Instrument, and/or the conveyance of title to the Property to Lender or any purchaser or designee in connection with a foreclosure of the Security Instrument
or conveyance in lieu of foreclosure. 
 XIII. RESERVED 
 XIV. SECURITIZATION AND PARTICIPATION 
 Section 14.1 Sale of Note and 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 satisfy the
market standards which may be reasonably required in the marketplace or by the Rating Agencies in connection with the sale of the Note or participation therein as part of the first successful securitization (such sale and/or securitization, the
“Securitization”) of rated single or multi-class securities (the “Securities”) secured by or evidencing ownership interests in the Note and this Agreement, including using reasonable efforts to do (or
cause to be done) the following (but Borrower shall not in any event be required to incur, suffer or accept (except to a de minimis extent)) (i) any lesser rights or greater obligations or liability than as currently set forth in the Loan
Documents and (ii) except as set forth in this Article XIV and other than payment by Borrower of any legal fees of Borrower and Guarantor, any expense or any liability: 
 14.1.1 Provided Information. (i) Provide, at the sole expense of the holder of the Note (other than legal fees of counsel to the
Borrower and Guarantor), such non-confidential financial and other information (but not projections) with respect to the Property and Borrower and Manager to the extent such information is reasonably available to Borrower or Manager,
(ii) provide, at the sole expense of the holder of the Note (other than legal fees of counsel to the Borrower and Guarantor), business plans (but not projections) and budgets relating to the Property, to the extent prepared by the Borrower or
Manager and (iii) cooperate with the holder of the Note (and its representatives) in obtaining, at the sole expense of the holder of the Note (other than legal fees of counsel to the Borrower and Guarantor), such site inspection, appraisals,
market studies, environmental reviews and reports, engineering reports and other due diligence investigations of the Property, as may be reasonably requested by the holder of the Note or reasonably requested by the Rating Agencies (all information
provided pursuant to this Section 14.1 together with all other information heretofore provided to Lender in connection with the Loan, as such may be updated, at Borrower’s request, in connection with a Securitization, or hereafter
provided to Lender in connection with the Loan or a Securitization, being herein collectively called the “Provided Information”); 
 14.1.2 Opinions of Counsel. Use reasonable efforts to cause to be rendered such customary updates or customary modifications to the Opinions of 
  

 105 

 Counsel delivered at the closing of the Loan as may be reasonably requested by the holder of the Note or the Rating
Agencies in connection with the Securitization. Borrower’s failure to use reasonable efforts to deliver or cause to be delivered the opinion updates or modifications required hereby within twenty (20) Business Days after written request
therefor shall constitute an “Event of Default” hereunder. To the extent any of the foregoing Opinions of Counsel were required to be delivered in connection with the closing of the Loan, any update thereof shall be at the
expense of Lender and without cost to Borrower. Any such Opinions of Counsel that Borrower is reasonably required to cause to be delivered in connection with a Securitization (which the parties agree shall consist of a “Review Letter” and
bring downs of the Opinions of Counsel delivered as of the date hereof which Borrower acknowledges will be required to be delivered by Borrower’s counsel in connection with a Securitization taking into account the due diligence Borrower’s
counsel deems reasonably necessary to deliver such “Review Letter”). Borrower shall not be required to pay the cost of any reliance letters or new opinions to permit successor holders of the Loan or any interest therein to rely on the
opinions delivered at Closing in connection with Securitization or assignments of the Loan. 
 14.1.3 Modifications to Loan
Documents. Without cost to the Borrower (other than legal fees of counsel to the Borrower and Guarantor), execute such amendments to the organizational documents of Borrower, Security Instrument and Loan Documents as may be reasonably
requested by Lender or the Rating Agencies in order to achieve the required rating or to effect the Securitization (including, without limitation, modifying the Payment Date, as defined in the Note, to a date other than as originally set forth in
the Note), provided, that nothing contained in this Section 14.1.3 shall result in any economic or other adverse change in the transaction contemplated by the Security Instrument or the Loan Documents (unless Borrower is made
whole by the holder of Note) or result in any operational changes that are burdensome to the Property, Operating Lessee, Manager or Borrower. 
 Section 14.2 Cooperation with Rating Agencies. Borrower shall, at Lender’s expense (other than legal fees of counsel to the Borrower and Guarantor), (i) at Lender’s request, meet with representatives
of the Rating Agencies at reasonable times to discuss the business and operations of the Property, and (ii) cooperate with the reasonable requests of the Rating Agencies in connection with the Property. Until the Obligations are paid in full,
Borrower shall provide the Rating Agencies with all financial reports required hereunder and such other information as they shall reasonably request, including copies of any default notices or other material notices delivered to and received from
Lender hereunder, to enable them to continuously monitor the creditworthiness of Borrower and to permit an annual surveillance of the implied credit rating of the Securities. 
 Section 14.3 Securitization Financial Statements. Borrower acknowledges that all such financial information delivered by
Borrower to Lender pursuant to Article XI may, at Lender’s option, be delivered to the Rating Agencies. 
 Section 14.4
Securitization Indemnification. 
 14.4.1 Disclosure Documents. Borrower understands that certain of
the Provided Information may be included in disclosure documents in connection with the Securitization, including a prospectus or private placement memorandum or a public registration 
  

 106 

 statement (each, a “Disclosure Document”) 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,
upon request, Borrower shall reasonably cooperate with the holder of the Note in updating the Provided Information for inclusion or summary in the Disclosure Document by providing all current information pertaining to Borrower and the Property
reasonably requested by Lender. 
 14.4.2 Indemnification Certificate. In connection with each of (x) a
preliminary and a private placement memorandum, or (y) a preliminary and final prospectus, as applicable, Borrower agrees to provide, at Lender’s reasonable request, an indemnification certificate (at no cost to Borrower other than legal
fees of counsel to the Borrower and Guarantor): 
 (a) certifying that Borrower has carefully examined those portions of such memorandum or
prospectus, as applicable, reasonably designated in writing by Lender for Borrower’s review pertaining to Borrower, the Property, the Loan and/or the Provided Information and insofar as such sections or portions thereof specifically pertain to
Borrower, the Property, the Provided Information or the Loan (such portions, the “Relevant Portions”), the Relevant Portions do not (except to the extent specified by Borrower if Borrower does not agree with the statements
therein), as of the date of such certificate, to the Best of Borrower’s Knowledge, 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. 
 (b) indemnifying Lender and the Affiliates of Citigroup Global Markets Inc.
(collectively, “CGM”) that have prepared the Disclosure Document relating to the Securitization, each of its directors, each of its officers who have signed the Disclosure Document and each person or entity who controls CGM
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “CGM Group”), and CGM, together with the CGM Group, each of their respective directors and each person who
controls CGM or the CGM Group, within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act (collectively, the “Underwriter Group”) for any actual, out-of-pocket losses, third party
claims, damages (excluding lost profits, diminution in value and other consequential damages) or liabilities arising out of third party claims (the “Liabilities”) to which any member of the Underwriter Group may become
subject to the extent such Liabilities arise out of or are based upon any untrue statement of any material fact contained in the Relevant Portions and in the Provided Information or arise out of or are based upon the omission by Borrower to state
therein a material fact required to be stated in the Relevant Portions in order to make the statements in the Relevant Portions in light of the circumstances under which they were made, not misleading (except that (x) Borrower’s obligation
to indemnify in respect of any information contained in a preliminary or final registration statement, private placement memorandum or preliminary or final prospectus shall be limited to any untrue statement or omission of material fact therein
known to Borrower to the extent in breach of Borrower’s certification made pursuant to clause (a) above and (y) Borrower shall have no responsibility for the failure of any member of the Underwriting Group to accurately transcribe
written information supplied by Borrower or to include such portions of the Provided Information). 
  

 107 

 (c) Borrower’s liability under clauses (a) and (b) above shall be limited to Liabilities
arising out of or based upon any such untrue statement or omission made in a Disclosure Document in reliance upon and in conformity with information furnished to Lender by, or furnished at the direction and on behalf of, Borrower in connection with
the preparation of those portions of the registration statement, memorandum or prospectus pertaining to Borrower, the Property or the Loan, including financial statements of Borrower and operating statements with respect to the Property. This
indemnity agreement will be in addition to any liability which Borrower may otherwise have. 
 (d) Promptly after receipt by an indemnified
party under this Article XIV of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Article XIV, notify the indemnifying party in
writing of the commencement thereof, but the omission to so notify the indemnifying party will not relieve the indemnifying party from any liability which the indemnifying party may have to any indemnified party hereunder except to the extent that
failure to notify causes prejudice to the indemnifying party. In the event that any action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled, jointly
with any other indemnifying party, to participate therein and, to the extent that it (or they) may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the
defense thereof with counsel reasonably satisfactory to such indemnified party. After notice from the indemnifying party to such indemnified party under this Article XIV of its assumption of such defense, the indemnifying party shall not be
liable for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof; provided, however, if the defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded that there are any legal defenses available to it and/or other indemnified parties that are different from or in conflict with those available to the indemnifying party,
the indemnified party or parties 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 party or parties at the expense of the
indemnifying party. The indemnifying party shall not be liable for the expenses of separate counsel unless an indemnified party shall have reasonably concluded that there may be legal defenses available to it that are different from or in conflict
with those available to another indemnified party. 
 (e) In order to provide for just and equitable contribution in circumstances in which
the indemnity provided for in this Article XIV is for any reason held to be unenforceable by an indemnified party in respect of any actual, out-of-pocket losses, claims, damages or liabilities relating to third party claims (or action in
respect thereof) referred to therein which would otherwise be indemnifiable under this Article XIV, the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such actual, out of pocket
losses, third party claims, damages or liabilities (or action in respect thereof) (but excluding damages for lost profits, diminution in value of the Property and consequential damages); provided, however, that no person guilty of
fraudulent misrepresentation (within the 
  

 108 

 meaning of Section 11(f) of the Securities Act) shall be entitled to contribution for Liabilities arising therefrom
from any person who was not guilty of such fraudulent misrepresentation. In determining the amount of contribution to which the respective parties are entitled, the following factors shall be considered: (i) the CGM Group’s and
Borrower’s relative knowledge and access to information concerning the matter with respect to which the claim was asserted; (ii) the opportunity to correct and prevent any statement or omission; (iii) the limited responsibilities and
obligations of Borrower as specified herein; and (iv) any other equitable considerations appropriate in the circumstances. 
 Section 14.5 Retention of Servicer. Lender reserves the right to retain the Servicer. Lender has advised Borrower that the Servicer initially retained by Lender shall be Gemsa Loan Services, L.P. Borrower shall pay
any reasonable servicing fees, special servicing fees, trustee fees and any administrative fees and expenses of the Servicer, including, without limitation, reasonable attorney and other third-party fees and disbursements in connection with a
prepayment, release of the Property, assumption or modification of the Loan or enforcement of the Loan Documents. Borrower shall also pay the ongoing standard monthly servicing fee. 
 XV. ASSIGNMENTS AND PARTICIPATIONS 
 Section 15.1 Assignment and Acceptance. At no incremental cost or liability to Borrower, Lender may assign to one or more Persons all or a portion of its rights and obligations under this Agreement and the other
Loan Documents (including, without limitation, all or a portion of the Note); provided that the parties to each such assignment shall execute and deliver to Lender, for its acceptance and recording in the Register (as hereinafter defined), an
Assignment and Acceptance. In addition, at no incremental cost to Borrower, Lender may participate to one or more Persons all or any portion of its rights and obligations under this Agreement and the other Loan Documents (including without
limitation, all or a portion of the Note) utilizing such documentation to evidence such participation and the parties’ respective rights thereunder as Lender, in its sole discretion, shall elect. 
 Section 15.2 Effect of Assignment and Acceptance. Upon such execution, delivery, acceptance and recording, from and after the
effective date specified in such Assignment and Acceptance, (i) the assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, have
the rights and obligations of Lender, as the case may be, hereunder and such assignee shall be deemed to have assumed such rights and obligations, and (ii) Lender shall, to the extent that rights and obligations hereunder have been assigned by
it pursuant to such Assignment and Acceptance, relinquish its rights and be released from its obligations under this Agreement and the other Loan Documents (and, in the case of an Assignment and Acceptance covering all or the remaining portion of
Lender’s rights and obligations under this Agreement and the other Loan Documents, Lender shall cease to be a party hereto) accruing from and after the effective date of the Assignment and Acceptance, except with respect to (A) any
payments made by Borrower to Lender pursuant to the terms of the Loan Documents after the effective date of the Assignment and Acceptance and (B) any letter of credit, cash deposit or other deposits or security (other than the Lien of the
Security Instrument and the other Loan Documents) delivered to or for the benefit of or deposited with Citigroup Global Markets Realty Corp., as Lender, for which Citigroup Global Markets Realty 
  

 109 

 Corp. shall remain responsible for the proper disposition thereof until such items are delivered to a party who is
qualified as an Approved Bank and agrees to hold the same in accordance with the terms and provisions of the agreement pursuant to which such items were deposited. 
 Section 15.3 Content. By executing and delivering an Assignment and Acceptance, Lender and the assignee thereunder confirm to and agree with each other and the other parties hereto as
follows: (i) other than as provided in such Assignment and Acceptance, Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this
Agreement or any other Loan Documents or the execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of any lien or security interest created or purported to be created under or in
connection with, this Agreement or any other Loan Documents or any other instrument or document furnished pursuant hereto or thereto; (ii) Lender makes no representation or warranty and assumes no responsibility with respect to the financial
condition of Borrower or the performance or observance by Borrower of any of its obligations under any Loan Documents or any other instrument or document furnished pursuant thereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance; (iv) such assignee will, independently and
without reliance upon Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement and the other Loan Documents;
(v) such assignee appoints and authorizes Lender to take such action as agent on its behalf and to exercise such powers and discretion under the Loan Documents as are delegated to Lender by the terms hereof together with such powers and
discretion as are reasonably incidental thereto; and (vi) such assignee agrees that it will perform, in accordance with their terms, all of the obligations which by the terms of this Agreement and the other Loan Documents are required to be
performed by Lender. 
 Section 15.4 Register. Borrower shall maintain a copy of each Assignment and Acceptance
delivered to and accepted by it and a register for the recordation of the names and addresses of Lender and each assignee pursuant to this Article XV and the Principal Amount of the Loan owing to each such assignee from time to time (the
“Register”). The entries in the Register shall, with respect to such assignees, be conclusive and binding for all purposes, absent manifest error. The Register shall be available for inspection by Lender or any assignee
pursuant to this Article XV at any reasonable time and from time to time upon reasonable prior written notice. 
 Section 15.5
Substitute Notes. Upon its receipt of an Assignment and Acceptance executed by an assignee, together with any Note or Notes subject to such assignment, Lender shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit J hereto, (i) accept such Assignment and Acceptance, (ii) record the information contained therein in the Register, and (iii) give prompt written notice thereof to Borrower. Within five
(5) Business Days after its receipt of such notice, Borrower, at Lender’s own expense, shall execute and deliver to Lender in exchange and substitution for the surrendered Note or Notes a new Note to the order of such assignee in an amount
equal to 
  

 110 

 the portion of the Loan assigned to it and a new Note to the order of Lender in an amount equal to the portion of the
Loan retained by it hereunder. Such new Note or Notes shall be in an aggregate Principal Amount equal to the aggregate then outstanding principal amount of such surrendered Note or Notes, shall be dated the effective date of such Assignment and
Acceptance and shall otherwise be in substantially the form of the Note (modified, however, to the extent necessary so as not to impose duplicative or increased obligations on Borrower and to delete obligations previously satisfied by Borrower).
Notwithstanding the provisions of this Article XV, Borrower and Operating Lessee shall not be responsible or liable for any additional taxes, reserves, adjustments or other costs and expenses that are related to, or arise as a result of, any
transfer of the Loan or any interest or participation therein that arise solely and exclusively from the transfer of the Loan or any interest or participation therein or from the execution of the new Note contemplated by this
Section 15.5, including, without limitation, any mortgage tax. Lender and/or the assignees, as the case may be, shall from time to time designate one agent through which Borrower shall request all approvals and consents required or
contemplated by this Agreement and on whose statements Borrower, Operating Lessee and Guarantor may rely. 
 Section 15.6
Participations. Each assignee pursuant to this Article XV may sell participations to one or more Persons (other than Borrower or any of its Affiliates) in or to all or a portion of its rights and obligations under this
Agreement and the other Loan Documents (including, without limitation, all or a portion of the Note held by it); provided, however, that (i) such assignee’s obligations under this Agreement and the other Loan Documents shall
remain unchanged, (ii) such assignee shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) such assignee shall remain the holder of any such Note for all purposes of this Agreement and
the other Loan Documents, and (iv) Borrower, Lender and the assignees pursuant to this Article XV shall continue to deal solely and directly with such assignee in connection with such assignee’s rights and obligations under this
Agreement and the other Loan Documents. In the event that more than one (1) party comprises Lender, Lender shall designate one party to act on the behalf of all parties comprising Lender in providing approvals and all other necessary consents
under the Loan Documents and on whose statements Borrower, Operating Lessee and Guarantor may rely. 
 Section 15.7 Disclosure of
Information. Any assignee pursuant to this Article XV may, in connection with any assignment or participation or proposed assignment or participation pursuant to this Article XV, disclose to the assignee or participant
or proposed assignee or participant, any information relating to Borrower furnished to such assignee by or on behalf of Borrower; provided, however, that, prior to any such disclosure, the assignee or participant or proposed assignee
or participant shall agree in writing for the benefit of Borrower to preserve the confidentiality of any confidential information received by it. 
 Section 15.8 Security Interest in Favor of Federal Reserve Bank. Notwithstanding any other provision set forth in this Agreement or any other Loan Document, any assignee pursuant to this Article XV may at
any time create a security interest in all or any portion of its rights under this Agreement or the other Loan Documents (including, without limitation, the amounts owing to it and the Note or Notes held by it) in favor of any Federal Reserve Bank
in accordance with Regulation A of the Board of Governors of the Federal Reserve System. 
  

 111 

 XVI. RESERVE ACCOUNTS 
 Section 16.1 Tax Reserve Account. In accordance with the time periods set forth in Section 3.1, if an Event of
Default shall have occurred and be continuing, if required under Section 3.1, Borrower shall deposit into the Tax Reserve Account an amount equal to (a) one-twelfth of the annual Impositions that Lender reasonably estimates, based
on the most recent tax bill for the Property, will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Impositions at least twenty (20) days prior to the imposition of
any interest, charges or expenses for the non-payment thereof and (b) one-twelfth of the annual Other Charges that Lender reasonably estimates will be payable during the next ensuing twelve (12) months (said monthly amounts in (a) and
(b) above hereinafter called the “Monthly Tax Reserve Amount”, and the aggregate amount of funds held in the Tax Reserve Account being the “Tax Reserve Amount”). As of the Closing Date, the
Monthly Tax Reserve Amount is $0.00, but such amount is subject to adjustment by Lender in accordance with the provisions of Section 3.1 and this Section 16.1. The Monthly Tax Reserve Amount shall be paid by Borrower to
Lender on each Payment Date during the continuance of an Event of Default to the extent required to be paid hereunder. Lender will apply the Monthly Tax Reserve Amount to payments of Impositions and Other Charges required to be made by Borrower
pursuant to Article V and Article VII and under the Security Instrument, subject to Borrower’s right to contest Impositions in accordance with Section 7.3. In making any payment relating to the Tax Reserve Account,
Lender may do so according to any bill, statement or estimate procured from the appropriate public office, 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 funds in the Tax Reserve Account shall exceed the amounts due for Impositions and Other Charges pursuant to Article V and Article VII, Lender shall credit such excess against future payments
to be made to the Tax Reserve Account. If at any time Lender reasonably determines that the Tax Reserve Amount is not or will not be sufficient to pay Impositions and Other Charges by the dates set forth above, Lender shall notify Borrower of such
determination and Borrower shall increase its monthly payments to Lender by the amount that Lender reasonably estimates is sufficient to make up the deficiency at least thirty (30) days prior to the imposition of any interest, charges or
expenses for the non-payment of the Impositions and Other Charges. Upon payment of the Impositions and Other Charges, Lender shall reassess the amount necessary to be deposited in the Tax Reserve Account for the succeeding period, which calculation
shall take into account any excess amounts remaining in the Tax Reserve Account. 
 Section 16.2 Insurance Reserve
Account. If required as provided in Section 3.1 hereof, Borrower will immediately pay to Lender for transfer by Lender to the Holding Account (or if Borrower fails to so pay Lender, Lender will transfer from the Holding
Account) an amount (the “Insurance Reserve Amount”) equal to payments of insurance premiums required to be made by Borrower to pay (or to reimburse Borrower or Operating Lessee for) the insurance required pursuant to
Article VI and under the Security Instrument in accordance with the time periods set forth in Section 3.1, an amount equal to one-twelfth of the insurance premiums that Lender reasonably estimates based on the most recent bill,
will be payable for the renewal of the coverage afforded by the insurance policies upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such insurance premiums at least twenty (20) days prior to the
expiration of the policies required to be maintained by Borrower pursuant to the 
  

 112 

 terms hereof (said monthly amounts hereinafter called the “Monthly Insurance Reserve Amount”);
provided, however, that immediately following an Insurance Reserve Trigger, Borrower will pay to Lender for transfer by Lender to the Insurance Reserve Account (or if Borrower fails to so pay Lender, Lender will transfer from the
Holding Account) an amount equal to payments of insurance premiums required to be made by Borrower to pay (or to reimburse Borrower or Operating Lessee) for the insurance required pursuant to Article VI and under the Security Instrument. As
of the Closing Date, the Monthly Insurance Reserve Amount is $0.00. The Monthly Insurance Reserve Amount, if same is payable pursuant to Section 3.1 and this Section 16.2, shall be paid by Borrower to Lender on each Payment
Date. Lender will apply the Monthly Insurance Reserve Amount to payments of insurance premiums required to be made by Borrower to pay for the insurance required pursuant to Article VI and under the Security Instrument. In making any payment
relating to the Insurance Reserve Account, Lender may do so according to any bill, statement or estimate procured from the insurer or agent, without inquiry into the accuracy of such bill, statement or estimate or into the validity thereof. If at
any time Lender reasonably determines that the Insurance Reserve Amount is not or will not be sufficient to pay insurance premiums (up to a maximum amount equal to the aggregate annual insurance premium required hereunder), Lender shall notify
Borrower of such determination and Borrower shall increase the Insurance Reserve Amount by the amount that Lender reasonably estimates is sufficient to make up the deficiency at least thirty (30) days prior to expiration of the applicable
insurance policies. Upon payment of such insurance premiums, Lender shall reassess the amount necessary to be deposited in the Insurance Reserve Account for the succeeding period, which calculation shall take into account any excess amounts
remaining in the Insurance Reserve Account. 
 Section 16.3 Intentionally Deleted. 
 Section 16.4 FF&E Reserve Account. In accordance with Section 3.1, and during any period when Manager is not
reserving for FF&E pursuant to the terms of the Management Agreement, upon the request of Borrower, Lender will, within fifteen (15) Business Days (or such shorter time as may be appropriate in Lender’s reasonable discretion during
emergency situations identified to Lender by Borrower in writing) after the receipt of such request and the satisfaction of the other conditions set forth in this Section, cause disbursements to Operating Lessee from the FF&E Reserve Account to
pay or to reimburse Operating Lessee or Manager for actual costs incurred in connection with capital expenditures relating to FF&E at the Property (to the extent such expenditures are permitted hereunder), provided that (A) Lender
has received invoices evidencing that the costs for which such disbursements are requested are due and payable and are in respect of capital expenditures relating to FF&E at the property, (B) Operating Lessee has applied any amounts
previously received by it in accordance with this Section for the expenses to which specific draws made hereunder relate and received any Lien waivers or other releases which would customarily be obtained with respect to the work in question and
(C) Lender has received an Officer’s Certificate confirming that the conditions in the foregoing clauses (A) and (B) have been satisfied and that the copies of invoices and evidence of Lien waivers (to the extent required above)
attached to such Officer’s Certificate are true, complete and correct. 
  

 113 

 Section 16.5 Letter of Credit Provisions. 
 16.5.1 Delivery of Letter of Credit. In lieu of maintaining on deposit all or any portion of the funds in the Low Debt Service
Reserve Account with Lender pursuant to Section 16.4, Borrower shall have the right to deliver a Letter of Credit in the amount of all or any portion of the amounts on deposit with Lender from time to time under Sections 16.4.

 16.5.2 Reduction of Letter of Credit. In the event that Borrower elects to deliver the Letter of Credit to Lender
under the terms of Section 16.4.1, Lender agrees to permit the reduction from time to time of the outstanding amount of the Letter of Credit by (i) the amount of cash funds delivered to Lender as reserve funds by Borrower in place
of such Letter of Credit, and (ii) the amount that Borrower would otherwise be entitled to receive as a disbursement from the applicable reserve account pursuant to Section 16.4. 
 16.5.3 Security for Debt. Each Letter of Credit delivered under this Agreement shall be additional security for the payment of the
Indebtedness. Upon the occurrence and 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 Indebtedness in such order, proportion or priority as Lender may determine. 
 16.5.4 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) 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) upon receipt of notice from the issuing bank that the Letter of Credit will be terminated (except if a substitute Letter of Credit is provided); or
(c) if Lender has received notice that the bank issuing the Letter of Credit shall cease to be an Approved Bank (unless an alternative Approved Bank issues an equivalent Letter of Credit within fifteen (15) days of Borrower’s receipt
of notice of same). 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) or (c) 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. 
 XVII. DEFAULTS 
 Section 17.1 Event of Default. (a) Each of the following events shall
constitute an event of default hereunder (an “Event of Default”): 
 (i) if (A) the Indebtedness is not paid in
full on the Maturity Date (subject to the last sentence of Section 3.1.5(b)), (B) any Debt Service is not paid in full on the applicable Payment Date (subject to the last sentence of Section 3.1.5(b)), (C) any
prepayment of principal due under this Agreement or the Note is not paid when due, (D) the Prepayment Fee is not paid when due, (E) any deposit to the Deposit Account or any of the other Collateral Accounts is not made on the required
deposit date therefor; or (F) except as to any amount included in (A), (B), (C), (D), and/or (E) of this clause (i), any other amount payable pursuant to this Agreement, the Note or any other Loan Document is not paid in full when due and
payable 
  

 114 

 in accordance with the provisions of the applicable Loan Document, with such failure as described in subclauses (A), (B),
(C), (D), and (E) continuing for ten (10) Business Days after Lender delivers written notice thereof to Borrower; 
 (ii) subject
to Borrower’s right to contest as set forth in Section 7.3, if any of the Impositions or Other Charges are not paid prior to the imposition of any interest, penalty, charge or expense for the non-payment thereof; 
 (iii) if the insurance policies required by Section 6.1 are not kept in full force and effect, or if certificates of any of such insurance
policies are not delivered to Lender within ten (10) Business Days following Lender’s request therefor; 
 (iv) if, except as
permitted pursuant to Article VIII, (a) any Transfer of any direct or indirect legal, beneficial or equitable interest in all or any portion of the Property, (b) any Transfer of any direct or indirect interest in Borrower or other
Person restricted by the terms of Article VIII, (c) any Lien or encumbrance on all or any portion of the Property, (d) any pledge, hypothecation, creation of a security interest in or other encumbrance of any direct or indirect
interests in Borrower or other Person restricted by the terms of Article VIII or (e) the filing of a declaration of condominium with respect to the Property other than as allowed hereunder; 
 (v) if (i) any representation or warranty made by Borrower in Section 4.1.23 shall have been false or misleading in any material
respect as of the date the representation or warranty was made which incorrect, false or misleading statement is not cured within thirty (30) days after receipt by Borrower of notice from Lender in writing of such breach or (ii) if any
other representation or warranty made by Borrower herein by Borrower, any Guarantor, or any Affiliate of Borrower in any other Loan Document, or in any report, certificate (including, but not limited to, any certificate by Borrower delivered in
connection with the issuance of the Non-Consolidation Opinion), 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 such representation or warranty which was false or misleading in any material respect is, by its nature, curable and is not reasonably likely to have a Material Adverse Effect, and such
representation or warranty was not, to the Best of Borrower’s Knowledge, false or misleading in any material respect which made, then same shall not constitute an Event of Default unless Borrower has not cured same within five (5) Business
Days after receipt by Borrower of notice from Lender in writing of such breach; 
 (vi) if Borrower or Guarantor shall make an assignment
for the benefit of creditors provided, however, if such assignment was with respect to any Guarantor such Event of Default may be cured by the delivery to Lender by any other Guarantor that is not subject to such assignment, of an
executed counterpart to the Recourse Guaranty assuming the several liability of the Guarantor with respect to which such assignment within five (5) days after such assignment; 
 (vii) if a receiver, liquidator or trustee shall be appointed for Borrower, Operating Lessee, or Guarantor or if Borrower, Operating Lessee or Guarantor
shall be 
  

 115 

 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, Operating Lessee or Guarantor, or if any proceeding for the dissolution or liquidation of Borrower, Operating Lessee, or
Guarantor shall be instituted; provided, however, if such appointment, adjudication, petition or proceeding was involuntary and not consented to by Borrower, Operating Lessee, or Guarantor upon the same not being discharged, stayed or
dismissed within ninety (90) days; provided, further, if such appointment, adjudication, petition or proceeding was with respect to Guarantor such Event of Default may be cured by the delivery to Lender by Guarantor that, not
subject to such appointment, adjudication, petition or proceeding, of an executed counterpart to the Recourse Guaranty assuming the several liability of the Guarantor with respect to which such appointment, adjudication, petition or proceeding
occurred within five (5) days after such occurrence; 
 (viii) if Borrower, Operating Lessee or Guarantor, as applicable, Transfers its
rights under this Agreement or any of the other Loan Documents or any interest herein or therein in contravention of the Loan Documents; 
 (ix) with respect to any term, covenant or provision set forth herein (other than the other subsections of this Section 17.l) which specifically contains a notice requirement or grace period, if Borrower, Operating Lessee or
Guarantor shall be in default under such term, covenant or condition after the giving of such notice or the expiration of such grace period; 
 (x) if Borrower, having notified Lender of its election to extend the Maturity Date as set forth in Section 5 of the Note, fails to deliver the Replacement Interest Rate Cap Agreement to Lender prior to the first day of the
extended term of the Loan and Borrower has not prepaid the Loan pursuant to the terms of the Note prior to such first day of the extended term; 
 (xi) if Borrower or Operating Lessee shall fail to comply with any covenants set forth in Article V or Section XI with such failure continuing for ten (10) Business Days after Lender delivers written notice thereof to
Borrower; 
 (xii) if Borrower shall fail to comply with any covenants set forth in Section 4 or Section 3(d) or
Section 8 of the Security Instrument with such failure continuing for ten (10) Business Days after Lender delivers written notice thereof to Borrower; 
 (xiii) Borrower, Operating Lessee or any Affiliate of any such Person shall fail to deposit any sums required to be deposited in the Holding Account or any Sub-Accounts thereof are not made pursuant to the
requirements herein when due; 
 (xiv) if this Agreement or any other Loan Document or any Lien granted hereunder or thereunder, in whole or
in part, shall terminate or shall cease to be effective or shall cease to be a legally valid, binding and enforceable obligation of Borrower or Guarantor, or any Lien securing the Loan shall, in whole or in part, cease to be a perfected first
priority Lien, subject to the Permitted Encumbrances (except in any of the foregoing cases in accordance with the terms hereof or under any other Loan Document or by reason of any affirmative act of Lender); 
  

 116 

 (xv) if the Management Agreement is terminated and an Acceptable Manager is not appointed as a
replacement manager pursuant to the provisions of Section 5.2.14 within sixty (60) days after such termination; 
 (xvi) if
Borrower shall default beyond the expiration of any applicable cure period under any existing easement, covenant or restriction which affects the Property, the default of which shall have a Material Adverse Effect; 
 (xvii) There exists any fact or circumstance that reasonably could be expected to result in the (a) imposition of a Lien or security interest under
Section 412(n) of the Code or under ERISA or (b) the complete or partial withdrawal by Borrower or any ERISA Affiliate from any “multiemployer plan” that is reasonably expected to result in any material liability to Borrower;
provided, however that the existence of such fact or circumstance under clause (xvii)(b) shall not constitute an Event of Default if such material withdrawal liability (x) in the case of a withdrawal by an ERISA Affiliate that is
reasonably expected to cause a Material Adverse Effect or any withdrawal by Borrower, is paid within thirty (30) days after the date incurred or is contested in accordance with Section 7.3 hereof or (y) in the case of a
withdrawal by an ERISA Affiliate that is not reasonably expected to cause a Material Adverse Effect, is paid within the period required under applicable ERISA statutes or is contested in accordance with Section 7.3 hereof; 
 (xviii) if (A) Borrower shall fail in the payment of any rent, additional rent or other charge mentioned in or made payable by the Ground Lease as
and when such rent or other charge is payable (unless waived by the ground lessor under the Ground Lease), (B) there shall occur any default by Borrower, as ground lessee under the Ground Lease, in the observance or performance of any term,
covenant or condition of the Ground Lease on the part of Borrower, to be observed or performed (unless waived by the ground lessor under the Ground Lease), (C) if any one or more of the events referred to in the Ground Lease shall occur which
would cause the Ground Lease to terminate without notice or action by the ground lessor under the Ground Lease or which would entitle the ground lessor to terminate the Ground Lease and the term thereof by giving notice to Borrower, as tenant
thereunder (unless waived by the ground lessor under the Ground Lease), (D) if the leasehold estate created by the Ground Lease shall be surrendered or the Ground Lease shall be terminated or canceled for any reason or under any circumstances
whatsoever or (E) if any of the terms, covenants or conditions of the Ground Lease shall in any manner be modified, changed, supplemented, altered, or amended without the consent of Lender except as otherwise permitted by this Agreement;

 (xix) if Borrower amends, modifies, waives, discharges or terminates the TIC agreement is, in each instance, such action is not permitted
hereunder or without the prior written consent of Lender, which consent shall not be unreasonably withheld; 
 (xx) if, not later than one
hundred eighty-five (185) days from the Closing Date, Qualified Intermediary shall not have sold or transferred to Strategic Hotel Funding, L.L.C. 100% of the indirect interests in the Borrower owned by Qualified Intermediary; or 
  

 117 

 (xxi) if Borrower shall continue to be in Default under any of the other terms, covenants or conditions
of this Agreement or of any Loan Document not specified in subsections (i) to (xx) above, for thirty (30) days after notice from Lender; provided, however, that if such 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 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 ninety (90) days. 
 (b) Unless waived in writing by Lender, upon the occurrence and during the continuance of an Event of Default (other than an Event of Default described
in clauses (a)(vi), (vii) or (viii) above) Lender may, without notice or demand, 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, take such action
that Lender deems advisable to protect and enforce its rights against Borrower and in the Property, including, without limitation, (i) declaring immediately due and payable the entire Principal Amount together with interest thereon and all
other sums due by Borrower under the Loan Documents, (ii) collecting interest on the Principal Amount at the Default Rate whether or not Lender elects to accelerate the Note and (iii) enforcing or availing itself of any or all rights or
remedies set forth in the Loan Documents against Borrower and the Property, including, without limitation, all rights or remedies available at law or in equity; and upon any Event of Default described in subsections (a)(vi) or (a)(vii)
above, the Indebtedness 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. The foregoing provisions shall not be construed as a waiver by Lender of its right to pursue any other remedies available to it under this Agreement,
the Security Instrument or any other Loan Document. Any payment hereunder may be enforced and recovered in whole or in part at such time by one or more of the remedies provided to Lender in the Loan Documents. 
 Section 17.2 Remedies. (a) Unless waived in writing by Lender, upon the occurrence and 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 Indebtedness shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action for the
enforcement of its rights and remedies under any of the Loan Documents with respect to the Property. Any such actions taken by Lender shall be cumulative and concurrent and may be pursued independently, singly, successively, together or otherwise,
at such time and in such order as Lender may determine in its 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 
  

 118 

 the generality of the foregoing, Borrower agrees that if an Event of Default is continuing (i) Lender shall not be
subject to any one action or election of remedies law or rule and (ii) all liens and other rights, remedies or privileges provided to Lender shall remain in full force and effect until Lender has exhausted all of its remedies against the
Property and the Security Instrument has been foreclosed, sold and/or otherwise realized upon in satisfaction of the Indebtedness or the Indebtedness has been paid in full. 
 (b) Upon the occurrence and during the continuance of an Event of Default, with respect to the Account Collateral, the Lender may: 
 (i) subject to the terms of the Assignment of Management Agreement, without notice to Borrower, except as required by law, and at any time or from time
to time, charge, set-off and otherwise apply all or any part of the Account Collateral against the Obligations, Operating Expenses and/or Capital Expenditures for the Property or any part thereof; 
 (ii) in Lender’s sole discretion, at any time and from time to time, exercise any and all rights and remedies available to it under this Agreement,
and/or as a secured party under the UCC; 
 (iii) subject to the terms of the Assignment of Management Agreement, demand, collect, take
possession of or receipt for, settle, compromise, adjust, sue for, foreclose or realize upon the Account Collateral (or any portion thereof) as Lender may determine in its sole discretion; and 
 (iv) take all other actions provided in, or contemplated by, this Agreement. 
 (c) With respect to Borrower, the Account Collateral, the Rate Cap Collateral and the Property, nothing contained herein or in any other Loan Document
shall be construed as requiring Lender to resort to the Property for the satisfaction of any of the Indebtedness, and Lender may seek satisfaction out of the Property or any part thereof, in its absolute discretion in respect of the Indebtedness. In
addition, Lender shall have the right from time to time to partially foreclose this Agreement and the Security Instrument in any manner and for any amounts secured by this Agreement or the Security Instrument then due and payable as determined by
Lender in its sole discretion including, without limitation, the following circumstances: (i) in the event Borrower defaults beyond any applicable grace period in the payment of one or more scheduled payments of principal or interest, Lender
may foreclose this Agreement and the Security Instrument 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 this Agreement
and the Security Instrument to recover so much of the principal balance of the Loan as Lender may accelerate and such other sums secured by this Agreement or the Security Instrument as Lender may elect. Notwithstanding one or more partial
foreclosures, the Property shall remain subject to this Agreement and the Security Instrument to secure payment of sums secured by this Agreement and the Security Instrument and not previously recovered. 
  

 119 

 Section 17.3 Remedies Cumulative; Waivers. The rights, powers and remedies of
Lender under this Agreement and the Security Instrument shall be cumulative and not exclusive of any other right, power or remedy which Lender may have against Borrower pursuant to this Agreement or the other Loan Documents, or existing at law or in
equity or otherwise. Lender’s rights, powers and remedies may be pursued singly, 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 or any Guarantor shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or any Guarantor or to impair any remedy, right or power consequent
thereon. 
 Section 17.4 Costs of Collection. In the event that after an Event of Default: (i) the Note or any
of the Loan Documents is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding; (ii) an attorney is retained to represent Lender in any bankruptcy, reorganization,
receivership, or other proceedings affecting creditors’ rights and involving a claim under the Note or any of the Loan Documents; or (iii) an attorney is retained to protect or enforce the lien or any of the terms of this Agreement, the
Security Instrument or any of the Loan Documents; then Borrower shall pay to Lender all reasonable attorney’s fees, costs and expenses actually incurred in connection therewith, including costs of appeal, together with interest on any judgment
obtained by Lender at the Default Rate. 
 XVIII. SPECIAL PROVISIONS 
 Section 18.1 Exculpation. 
 18.1.1 Exculpated Parties. Except as set forth in this Section 18.1, the Recourse Guaranty and the Environmental Indemnity, no personal liability shall be asserted, sought or obtained
by Lender or enforceable against (i) Borrower, Prime Lessee or Operating Lessee, (ii) any Affiliate of Borrower, Prime Lessee or Operating Lessee including any managing member, (iii) any Person owning, directly or indirectly, any
legal or beneficial interest in Borrower, Prime Lessee, Operating Lessee or managing member or any Affiliate of Borrower, Prime Lessee, Operating Lessee or managing member, or (iv) any current or former direct or indirect partner, member,
principal, officer, Controlling Person, beneficiary, trustee, advisor, shareholder, employee, agent, manager, Affiliate or director of any Persons described in clauses (i) through (iii) above (collectively, the “Exculpated
Parties”) and none of the Exculpated Parties shall have any personal liability (whether by suit, deficiency, judgment or otherwise) in respect of the Obligations, this Agreement, the Security Instrument, the Note, the Property or any
other Loan Document, or the making, issuance or transfer thereof, all such liability, if any, being expressly waived by Lender. The foregoing limitation shall not in any way limit or affect Lender’s right to any of the following and Lender
shall not be deemed to have waived any of the following: 
 (a) Foreclosure of the lien of this Agreement and the Security Instrument in
accordance with the terms and provisions set forth herein and in the Security Instrument; 
  

 120 

 (b) Action against any other security at any time given to secure the payment of the Note and the other
Obligations; 
 (c) Exercise of any other remedy set forth in this Agreement or in any other Loan Document which is not inconsistent with the
terms of this Section 18.1; 
 (d) Any right which Lender may have under Sections 506(a), 506(b), 1111(b) or any other provisions
of the Bankruptcy Code to file a claim for the full amount of the Indebtedness secured by this Agreement and the Security Instrument or to require that all collateral shall continue to secure all of the Indebtedness owing to Lender in accordance
with the Loan Documents; or 
 (e) The liability of any given Exculpated Party with respect to any separate written guaranty or agreement
given by any such Exculpated Party in connection with the Loan (including, without limitation, the Recourse Guaranty and the Environmental Indemnity). 
 18.1.2 Carveouts From Non-Recourse Limitations. Notwithstanding the foregoing or anything in this Agreement or any of the Loan Documents to the contrary, there shall at no time be any limitation
on Borrower’s or Guarantor’s liability for the payment, in accordance with the terms of this Agreement, the Note, the Security Instrument and the other Loan Documents, to Lender of: 
 (a) any loss, damage, cost or expense incurred by or on behalf of Lender by reason of (i) the fraudulent acts of or intentional misrepresentations by
Borrower or any Affiliate of Borrower and/or (ii) the failure of Borrower and/or Operating Lessee (as applicable) to have a valid and subsisting certificate of occupancy(s) for all or any portion of the Property if and to the extent such
certificate of occupancy(s) is required to comply with all Legal Requirements; 
 (b) Proceeds which Borrower or any Affiliate of Borrower
has received and to which Lender is entitled pursuant to the terms of this Agreement or any of the Loan Documents to the extent the same have not been applied toward payment of the Indebtedness, or used for the repair or replacement of the Property
in accordance with the provisions of this Agreement; 
 (c) any membership deposits and any security deposits and advance deposits which are
not delivered to Lender upon a foreclosure of the Property or action in lieu thereof, except to the extent any such deposits were applied or refunded in accordance with the terms and conditions of any of the Leases or membership agreement, as
applicable, prior to the occurrence of the Event of Default that gave rise to such foreclosure or action in lieu thereof; 
 (d) any loss,
damage, cost or expense incurred by or on behalf of Lender by reason of all or any part of the Property, the Account Collateral or the Rate Cap Collateral being encumbered by a Lien (other than this Agreement and the Security Instrument) in
violation of the Loan Documents; 
 (e) after the occurrence and during the continuance of an Event of Default, any Rents, issues, profits
and/or income collected by Borrower, Operating Lessee or any Affiliate of Borrower or Operating Lessee (other than Rents and credit card receivables sent to the applicable Deposit Account or paid directly to Lender pursuant to any notice of
direction 
  

 121 

 delivered to tenants of the Property or credit card companies) and not applied to payment of the Obligations or used to
pay normal and verifiable Operating Expenses of the Property or otherwise applied in a manner permitted under the Loan Documents; 
 (f) any
loss, damage, cost or expense incurred by or on behalf of Lender by reason of physical damage to the Property from intentional waste committed by Borrower or any Affiliate of Borrower; 
 (g) any loss, damage, cost or expense incurred by or on behalf of Lender by reason of the breach of any representation, warranty, covenant or
indemnification provision in the Environmental Indemnity or in the Security Instrument concerning environmental laws, hazardous substances and asbestos and any indemnification of Lender with respect thereto in either document; 
 (h) any loss, damage, cost or expense incurred by or on behalf of Lender by reason of the failure of Borrower to comply with any of the provisions of
Article XIV; 
 (i) if Borrower fails to obtain Lender’s prior written consent to any Transfer, if and as required by the Loan
Agreement or the Security Instrument; 
 (j) any and all liabilities, obligations, losses, damages, costs and expenses (including, without
limitation, reasonable attorneys’ fees, causes of action, suits, claims, demands and adjustments of any nature or description whatsoever) which may at any time be imposed upon, incurred by or awarded against Lender, in the event (and arising
out of such circumstances) that (x) Borrower should raise any defense, counterclaim and/or allegation in any foreclosure action by Lender relative to the Property, the Account Collateral or the Rate Cap Collateral or any part thereof which is
found by a court to have been raised by Borrower in bad faith or to be without basis in fact or law, or (y) an involuntary case is commenced against Borrower under the Bankruptcy Code with the collusion of Borrower or any of its Affiliates or
(z) an order for relief is entered with respect to the Borrower under the Bankruptcy Code through the actions of the Borrower or any of its Affiliates at a time when the Borrower is able to pay its debts as they become due unless Borrower and
Guarantor shall have received an opinion of independent counsel that the directors of Borrower has a fiduciary duty to seek such an order for relief; 
 (k) any actual loss, damage, cost, or expense incurred by or on behalf of Lender by reason of Borrower, Operating Lessee, or their respective general partners failing to be and have been since the date of its
respective formation, a Single Purpose Entity; and 
 (l) reasonable attorney’s fees and expenses incurred by Lender in connection with
any successful suit filed on account of any of the foregoing clauses (a) through (k). 
 XIX. MISCELLANEOUS 
 Section 19.1 Survival. This Agreement and all covenants, indemnifications, 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 Indebtedness is

  

 122 

 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 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 successors and assigns of Lender. 
 Section 19.2 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 or as is otherwise required by law) be in the sole discretion of Lender and shall be final and conclusive. 
 Section 19.3 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, 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 AND THE OBLIGATIONS ARISING HEREUNDER 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 AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT
AND THE NOTE, AND THIS AGREEMENT 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 MAY 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 OF BORROWER AND LENDER 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 OF BORROWER AND LENDER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. BORROWER DOES HEREBY DESIGNATE AND APPOINT: 
 CORPORATION SERVICE COMPANY 
 80
STATE STREET 
 ALBANY, NEW YORK 12207-2543 
  

 123 

 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 WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED
HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW 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 19.4 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, or consent to any departure therefrom, shall in any event be effective unless the same shall be in a writing signed by the party against whom enforcement is sought and then such waiver or consent shall be effective only in the specific
instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to or demand on Borrower shall entitle Borrower to any other or future notice or demand in the same, similar or other circumstances. 

Section 19.5 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 when due of all other amounts due under this Agreement, the Note or
the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount. 
 Section 19.6
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, (b) expedited prepaid delivery service, either commercial or United States Postal Service, with proof of attempted delivery or (c) telecopier
(with answer back acknowledged), addressed as follows (or at such other address and Person as shall be designated from time to time by any party hereto, as the case may be, in a written notice to the other parties hereto in the manner provided for
in this Section): 
  

			
	 If to Lender:
	  	 Citigroup Global Markets Realty Corp.
 388 Greenwich
Street, 11th Floor
 New
York, New York 10013
 Attention: Amir Kornblum
 Telecopy No.:
(212) 816-8307

  

 124 

			
	With a copy to:	  	 Cadwalader, Wickersham & Taft LLP
 One World
Financial Center
 New York, New York 10281
 Attention: Fredric L.
Altschuler, Esq.
 Telecopy: (212) 504-6666

		
	If to Borrower:	  	 Strategic Hotel Funding, L.L.C
 77 West Wacker
Drive
 Suite 4600
 Chicago, Illinois, 60601
 Attention: Chief Financial Officer and General Counsel
 Telefax No.:
(312) 658-5799

		
	With a copy to:	  	 Perkins Coie LLP
 131 South Dearborn Street, Suite
1700
 Chicago, IL 60603-5559
 Attention: Bruce A. Bonjour,
Esq.
 Telefax No.: (312) 324-9400

 All notices, elections, requests and demands under this Agreement shall be effective and deemed received upon the
earliest of (i) the actual receipt of the same by personal delivery or otherwise, (ii) one (1) Business Day after being deposited with a nationally recognized overnight courier service as required above, or (iii) on the day sent
if sent by facsimile with confirmation on or before 5:00 p.m. New York time on any Business Day or on the next Business Day if so delivered after 5:00 p.m. New York time or on any day other than a Business Day. Rejection or other refusal to accept
or the inability to deliver because of changed address of which no notice was given as herein required shall be deemed to be receipt of the notice, election, request, or demand sent. 
 Section 19.7 TRIAL BY JURY. EACH OF BORROWER, LENDER AND ALL PERSONS CLAIMING BY, THROUGH OR UNDER IT, HEREBY EXPRESSLY,
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT, THE SECURITY INSTRUMENT, THE NOTE OR ANY OTHER LOAN DOCUMENT, INCLUDING, WITHOUT
LIMITATION, ANY PRESENT OR FUTURE MODIFICATION THEREOF OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS AGREEMENT, THE SECURITY INSTRUMENT, THE NOTE OR ANY OTHER
LOAN DOCUMENT (AS NOW OR HEREAFTER MODIFIED) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE 
  

 125 

 TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION IS NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND BORROWER HEREBY AGREES AND CONSENTS THAT AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION MAY BE FILED WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT
HERETO TO THE WAIVER OF ANY RIGHT TO TRIAL BY JURY. BORROWER ACKNOWLEDGES THAT IT HAS CONSULTED WITH LEGAL COUNSEL REGARDING THE MEANING OF THIS WAIVER AND ACKNOWLEDGES THAT THIS WAIVER IS AN ESSENTIAL INDUCEMENT FOR THE MAKING OF THE LOAN. THIS
WAIVER SHALL SURVIVE THE REPAYMENT OF THE LOAN. 
 Section 19.8 Headings. The Article and/or Section headings and
the Table of Contents in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
 Section 19.9 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 19.10 Preferences. 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 19.11 Waiver of Notice. Borrower shall not be entitled to any notices of any nature
whatsoever from Lender except with respect to matters for which this Agreement or the other Loan Documents specifically and expressly provide for the giving of notice by Lender to Borrower and except with respect to matters for which Borrower is
not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. Borrower hereby expressly waives the right to receive any notice from Lender with respect to any matter for which this Agreement or the other Loan Documents do
not specifically and expressly provide for the giving of notice by Lender to Borrower. 
 Section 19.12 Expenses;
Indemnity. (a) Except as may be otherwise expressly set forth in the Loan Documents, Borrower covenants and agrees to pay or, if Borrower fails to pay, to reimburse, Lender upon receipt of written notice from 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 without limitation any opinions requested by Lender pursuant to this Agreement); (ii) Lender’s ongoing

  

 126 

 performance of 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; (iii) 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 as required herein or under the other Loan Documents; (iv) securing Borrower’s compliance with any requests made pursuant to the provisions of this Agreement; (v) the filing and recording
fees and expenses, mortgage recording taxes, 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 Lien in favor of Lender
pursuant to this Agreement and the other Loan Documents; (vi) enforcing or preserving any rights, in response to third party claims or the prosecuting or defending of any action or proceeding or other litigation, in each case against, under or
affecting Borrower, this Agreement, the other Loan Documents, the Property, or any other security given for the Loan; (vii) enforcing any obligations of or collecting any payments due from Borrower under this Agreement, the other Loan Documents
or with respect to the Property or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a work-out or of any insolvency or bankruptcy proceedings and (viii) procuring
insurance policies pursuant to Section 6.1.11; provided, however, that Borrower shall not be liable for the payment of any such costs and expenses to the extent the same arise (A) by reason of the gross negligence,
illegal acts, fraud or willful misconduct of Lender or (B) in connection with any action taken under Article IV or a Securitization, other than the Borrower’s internal administrative costs. Any cost and expenses due and payable to
Lender may be paid from any amounts in the Deposit Accounts or the Holding Account if same are not paid by Borrower within ten (10) Business Days after receipt of written notice from Lender. 
 (b) Subject to the non-recourse provisions of Section 18.1, Borrower shall protect, indemnify and save harmless Lender, and all officers,
directors, stockholders, members, partners, employees, agents, successors and assigns thereof (collectively, the Indemnified Parties) from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses
(including all reasonable attorneys’ fees and expenses actually incurred) imposed upon or incurred by or asserted against the Indemnified Parties or the Property or any part of its interest therein, by reason of the occurrence or existence of
any of the following (to the extent Proceeds payable on account of the following shall be inadequate; it being understood that in no event will the Indemnified Parties be required to actually pay or incur any costs or expenses as a condition to the
effectiveness of the foregoing indemnity) prior to (i) the acceptance by Lender or its designee of a deed-in-lieu of foreclosure with respect to the Property, or (ii) an Indemnified Party or its designee taking possession or control of the
Property or (iii) the foreclosure of the Security Instrument, except to the extent caused by the willful misconduct or gross negligence of the Indemnified Parties (other than such willful misconduct or gross negligence imputed to the
Indemnified Parties because of their interest in the Property): (1) ownership of Borrower’s interest in the Property, or any interest therein, or receipt of any Rents or other sum therefrom, (2) any accident, injury to or death of any
persons or loss of or damage to property occurring on or about the Property or any Appurtenances thereto, (3) any design, construction, operation, repair, maintenance, use, non-use or condition of the Property or Appurtenances thereto,
including claims or penalties arising from violation of any Legal Requirement or Insurance Requirement, as well as any claim based on any patent or latent defect, whether or not discoverable by Lender, any claim the insurance as to which is
inadequate, 
  

 127 

 and any Environmental Claim, (4) any Default under this Agreement or any of the other Loan Documents or any failure
on the part of Borrower to perform or comply with any of the terms of any Lease within the applicable notice or grace periods, (5) any performance of any labor or services or the furnishing of any materials or other property in respect of the
Property or any part thereof, (6) any negligence or tortious act or omission on the part of Borrower or any of its agents, contractors, servants, employees, sublessees, licensees or invitees, (7) any contest referred to in
Section 7.3 hereof, (8) any obligation or undertaking relating to the performance or discharge of any of the terms, covenants and conditions of the landlord contained in the Leases, or (9) except as may be expressly limited
herein, the presence at, in or under the Property or the Improvements of any Hazardous Materials in violation of any Environmental Law. Any amounts the Indemnified Parties are legally entitled to receive under this Section which are not paid within
fifteen (15) Business Days after written demand therefor by the Indemnified Parties or Lender, setting forth in reasonable detail the amount of such demand and the basis therefor, shall bear interest from the date of demand at the Default Rate,
and shall, together with such interest, be part of the Indebtedness and secured by the Security Instrument. In case any action, suit or proceeding is brought against the Indemnified Parties by reason of any such occurrence, Borrower shall at
Borrower’s expense resist and defend such action, suit or proceeding or will cause the same to be resisted and defended by counsel at Borrower’s reasonable expense for the insurer of the liability or by counsel designated by Borrower
(unless reasonably disapproved by Lender promptly after Lender has been notified of such counsel); provided, however, that nothing herein shall compromise the right of Lender (or any Indemnified Party) to appoint its own counsel at
Borrower’s expense for its defense with respect to any action which in its reasonable opinion presents a conflict or potential conflict between Lender and Borrower that would make such separate representation advisable; provided,
further, that if Lender shall have appointed separate counsel pursuant to the foregoing, Borrower shall not be responsible for the expense of additional separate counsel of any Indemnified Party unless in the reasonable opinion of Lender a
conflict or potential conflict exists between such Indemnified Party and Lender. So long as Borrower is resisting and defending such action, suit or proceeding as provided above in a prudent and commercially reasonable manner, Lender and the
Indemnified Parties shall not be entitled to settle such action, suit or proceeding without Borrower’s consent which shall not be unreasonably withheld, delayed or conditioned, and claim the benefit of this Section with respect to such action,
suit or proceeding and Lender agrees that it will not settle any such action, suit or proceeding without the consent of Borrower; provided, however, that if Borrower is not diligently defending such action, suit or proceeding in a
prudent and commercially reasonable manner as provided above, and Lender has provided Borrower with thirty (30) days’ prior written notice, or shorter period if mandated by the requirements of applicable law, and opportunity to correct
such determination, Lender may settle such action, suit or proceeding and claim the benefit of this Section 19.12 with respect to settlement of such action, suit or proceeding. Any Indemnified Party will give Borrower prompt notice after
such Indemnified Party obtains actual knowledge of any potential claim by such Indemnified Party for indemnification hereunder. The Indemnified Parties shall not settle or compromise any action, proceeding or claim as to which it is indemnified
hereunder without notice to Borrower. 
 Section 19.13 Exhibits and Schedules Incorporated. The Exhibits and
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. 
  

 128 

 Section 19.14 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 19.15 Liability of Assignees of Lender. No assignee of Lender shall have any personal liability, directly or indirectly, under or in connection with this Agreement or any other Loan Document or any
amendment or amendments hereto made at any time or times, heretofore or hereafter, any different than the liability of Lender hereunder. In addition, no assignee shall have at any time or times hereafter any personal liability, directly or
indirectly, under or in connection with or secured by any agreement, lease, instrument, encumbrance, claim or right affecting or relating to the Property or to which the Property is now or hereafter subject any different than the liability of Lender
hereunder. The limitation of liability provided in this Section 19.15 is (i) in addition to, and not in limitation of, any limitation of liability applicable to the assignee provided by law or by any other contract, agreement or
instrument, and (ii) shall not apply to any assignee’s gross negligence or willful misconduct. 
 Section 19.16 No Joint
Venture or Partnership; No Third Party Beneficiaries. (a) Borrower and Lender intend that the relationships created hereunder and under the other Loan Documents be solely that of borrower and lender. Nothing herein or therein is
intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Property other than that of mortgagee, beneficiary or lender. 
 (b) This Agreement and the other Loan Documents are solely for the benefit of Lender and Borrower and nothing contained in this Agreement or the other
Loan Documents shall be deemed to confer upon anyone other than Lender and Borrower any right to insist upon or to enforce the performance or observance of any of the obligations contained herein or therein provided, however, that it
is hereby agreed by Lender and Borrower that the provisions of Section 3.1.5 and the provisions of Sections 6.2.2 and 6.2.5 (to the extent they relate to disbursement of funds to the Mezzanine Account and/or to pay amounts
owed in connection with the Mezzanine Loan) are intended to confer upon Mezzanine Lender the right to insist upon and enforce the performance and observance of the obligation expressly set forth 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. 
 Section 19.17
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, to
Lender, or any of its Affiliates shall be subject to the prior written approval of Lender. 
  

 129 

 Section 19.18 Waiver of Marshalling of Assets. To the fullest extent permitted
by law, Borrower, for itself and its successors and assigns, waives all rights to a marshalling of the assets of Borrower, Borrower’s shareholders and others with interests in Borrower and of the Property, and agrees not to assert any right
under any laws pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under
the Loan Documents to a sale of the Property for the collection of the Indebtedness without any prior or different resort for collection or of the right of Lender to the payment of the Indebtedness out of the net proceeds of the Property in
preference to every other claimant whatsoever. 
 Section 19.19 Waiver of Counterclaim and Other Actions. Borrower
hereby expressly and unconditionally waives, in connection with any suit, action or proceeding brought by Lender on this Agreement, the Note, the Security Instrument or any Loan Document, any and every right it may have to (i) interpose any
counterclaim therein (other than a counterclaim which can only be asserted in the suit, action or proceeding brought by Lender on this Agreement, the Note, the Security Instrument or any Loan Document and cannot be maintained in a separate action)
and (ii) have any such suit, action or proceeding consolidated with any other or separate suit, action or proceeding. 
 Section 19.20 Conflict; Construction of Documents; Reliance. In the event of any conflict between the provisions of this Agreement and any of the other Loan Documents, the provisions of this Agreement shall
control. The parties hereto acknowledge that they were represented by competent counsel in connection with the negotiation, drafting and execution of the Loan Documents and that such Loan Documents shall not be subject to the principle of construing
their meaning against the party which drafted same. Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering into the Loan without relying in any manner on any statements,
representations or recommendations of Lender or any parent, subsidiary or Affiliate of Lender. Lender shall not be subject to any limitation whatsoever in the exercise of any rights or remedies available to it under any of the Loan Documents or any
other agreements or instruments which govern the Loan by virtue of the ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest any of them may acquire in Borrower, and Borrower hereby irrevocably waives the right to
raise any defense or take any action on the basis of the foregoing with respect to Lender’s exercise of any such rights or remedies. Borrower acknowledges that Lender engages in the business of real estate financings and other real estate
transactions and investments which may be viewed as adverse to or competitive with the business of Borrower or its Affiliates. 
 Section 19.21 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, are superseded by the terms of this Agreement and the other Loan Documents and unless specifically set forth in a writing contemporaneous herewith the terms, conditions and
provisions of any and all such prior agreements do not survive execution of this Agreement. 
  

 130 

 Section 19.22 Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall constitute an original, but all of which shall constitute one document. 
 Section 19.23 Joint
and Several Liability. If Borrower consists of more than one person, the obligations and liabilities of each such person hereunder and under the other Loan Documents shall be joint and several. 
 Section 19.24 Contribution Among Co-Borrowers.  
 (a) Contribution. To provide for the just and equitable contribution among the Co-Borrowers on a several basis owing to the different equity
each Co-Borrower owns in their tenancy in common ownership of the Property, if any payment is made by a Co-Borrower hereunder or under the Note or any other Loan Document in respect of the Obligations, such Co-Borrower shall be entitled to a
contribution from the other Co-Borrower for all payments, damages and expenses incurred by such Co-Borrower under or in connection with such Obligations, such contributions to be made in the manner and to the extent set forth below. Any amount
payable as a contribution under this Agreement shall be determined as of the date on which the related payment is made by a Co-Borrower. 
 (b) Calculation of Contributions. Each Co-Borrower shall be liable for contribution to the other Co-Borrower in respect of all payments, damages and expenses incurred by the other Co-Borrower hereunder or under the Note or any
other Loan Document in an aggregate amount, equal to (i) the ratio of (x) the equity in the tenancy in common ownership of the Property owned by the contributing Co-Borrower to (y) the aggregate equity tenancy in common ownership of
the Property, multiplied by (ii) the aggregate amount of such payments, damages and expenses incurred by the other Co-Borrower under or in connection with the Obligations. 
 [REMAINDER OF PAGE INTENTIONALLY BLANK] 
  

 131 

 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:
	
	 SHR SCOTTSDALE X, L.L.C., a Delaware limited liability company

		
	By:	 	 /s/ Ryan M. Bowie

	Name:	 	 Ryan M. Bowie

	Title:	 	Assistant Treasurer
	
	 SHR SCOTTSDALE Y, L.L.C., a Delaware limited liability company

		
	By:	 	 /s/ Ryan M. Bowie

	Name:	 	 Ryan M. Bowie

	Title:	 	Assistant Treasurer

 By signing below, Operating Lessee agrees that in consideration of the substantial benefit that it will
receive from Lender making the Loan to Borrower, to comply with all of the terms, conditions, obligations and restrictions affecting Operating Lessee set forth herein: 
  

			
	OPERATING LESSEE:
	
	 DTRS SCOTTSDALE, L.L.C, a Delaware limited liability company

		
	By:	 	 /s/ Ryan M. Bowie

	Name:	 	 Ryan M. Bowie

	Title:	 	Assistant Treasurer

 [Lender’s signature appears on following page] 

			
	LENDER:
	
	CITIGROUP GLOBAL MARKETS REALTY CORP., a New York corporation
		
	By:	 	 /s/ Amir Kornblum

	Name:	 	Amir Kornblum
	Title:	 	Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}]]