Document:

exv10w33w4

Exhibit 10.33.4

Prepared by and Upon

Recordation Return to:

	 	 	 	 	 

	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	Attention:
	 	 	 	 
	 

	 	 

	 	 

 

Space above for Recorder’s Use

THIS MORTGAGE COVERS GOODS WHICH ARE OR ARE TO BECOME FIXTURES AND IS TO BE RECORDED IN THE REAL
ESTATE RECORDS AS A FIXTURE FILING

	 	 	 

	 
	 	 
	 

	 	 
	 

	 	 
	 

	 	 

individually and collectively, as mortgagor (Mortgagor)

to

	 	 	 

	 
	 	 
	 

	 	 

, as mortgagee (Mortgagee)

[FEE], [LEASEHOLD] [AND] [SUBLEASEHOLD] MORTGAGE,

FIXTURE FILING AND SECURITY AGREEMENT

	 	 	 	 	 	 	 

	 

	 	Dated:
	 	As of                     , 20___	 	 
	 
	 	 	 	 	 	 
	 

	 	Location:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	County:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	File No.:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

     THIS [FEE], [LEASEHOLD] [AND] [SUBLEASEHOLD] MORTGAGE, FIXTURE FILING AND SECURITY AGREEMENT
(this “Security Instrument”) is made as of the       day of                     , 20     , by [                    ,
a(n)                     , as [fee owner and] mortgagor, having its principal place of business at
                     (“Owner”),                     , a(n)                     , having its
principal place of business at                      (“Ground Lessee”), as ground lessee and
mortgagor, and                     , a(n)                     , having its principal place of business
at                      (“Operating Lessee”, and together with Ground Lessee, each, a “                    
Borrower” and collectively, the “                     Borrowers”), as operating lessee and mortgagor (Owner,
Ground Lessee and Operating Lessee being sometimes referred to hereinafter, individually, as a
“Mortgagor” or, collectively, as “Mortgagors”)], to FORTRESS CREDIT CORP., a Delaware corporation
(“FCC”), having its principal place of business at c/o Drawbridge Special Opportunities Fund LP,
1345 Avenue of the Americas, 46th Floor, New York, New York 10105, in its capacity as the
Administrative Agent for the Lenders under the Loan Agreement (in such capacity, “Mortgagee”). All
capitalized terms not defined herein shall have the respective meanings set forth in the Loan
Agreement (defined below).

RECITALS:

     [WHEREAS, Owner owns the fee simple interest in the real property described in
Exhibit A attached hereto and made a part hereof (the “Land”);]

     [WHEREAS, Ground Lessee is the owner of the leasehold estate created pursuant to that certain
Ground Lease dated                     , 20     , by and between Owner, as lessor, and Ground Lessee, as
lessee, and evidenced by that certain [Memorandum of Lease] recorded in the                                         
on                     , 20     , as modified by [list modification instruments] [to be] recorded
[concurrently herewith] in the                      (as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time, the “Ground Lease”)];

     [WHEREAS, Operating Lessee is the owner of the subleasehold estate created pursuant to that
certain Lease Agreement dated                     , 20     , by and between Owner [(formerly known as
                    )], as lessor, and                     , as lessee, as modified by [list
modification instruments] [to be] recorded [concurrently herewith] in the                     , and
assigned by [list assignment instruments] [to be] recorded [concurrently herewith] in the
                    , and evidenced by that certain [Memorandum of Lease] recorded in the
                     (as the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time, the “Operating Lease”)];

     WHEREAS, the                      Borrowers and certain other parties, collectively, as borrowers
(together with the                      Borrowers, collectively, the “Borrowers”), Mortgagee, as
Administrative Agent, and FCC, in its capacity as Initial Lender, and certain other Persons,
collectively, as lenders, have entered into that certain Credit Agreement dated as of the date
hereof, as modified by that certain Letter Agreement dated as of the date hereof, between
Administrative Agent, Initial Lender, Borrowers and FelCor Lodging Limited Partnership (as so
modified, and as the same may be further amended, restated, replaced, supplemented or otherwise
modified from time to time, the “Loan Agreement”), pursuant to which the Mortgagee and the other
lenders named therein have agreed to make a loan (the “Loan”) to the

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Borrowers in the original principal sum of TWO HUNDRED TWELVE MILLION and 00/100 Dollars
($212,000,000.00), which Loan shall be evidenced by the Note;

     WHEREAS,                      Borrowers are obligated under the Loan Agreement to grant to Mortgagee as
security for the payment and performance of the Obligations a valid, enforceable, first-priority
mortgage lien on the Property (hereinafter defined);

     WHEREAS, Owner owns 100% of the direct and indirect equity interests in the                     
Borrowers, and Owner will derive significant benefits if the Borrowers consummate the transactions
contemplated in the Loan Agreement. [The Loan Agreement requires Owner to execute, acknowledge and
deliver a mortgage encumbering Owner’s fee simple interest in the Property, and pursuant to Section
6.01(a) of the Ground Lease, Owner is required, upon the request of Ground Lessee, to subject
Owner’s fee simple estate in the Property to a security instrument encumbering the Leasehold Estate
(hereinafter defined)];

     WHEREAS, Mortgagors are entering into this Security Instrument pursuant to the terms of the
Loan Agreement, to secure the payment, fulfillment, and performance by                      Borrowers of their
obligations thereunder and under the other Loan Documents, and each and every term and provision of
the Loan Agreement, the Note, and that certain Assignment of Leases and Rents dated the date
hereof, made by Mortgagors in favor of Mortgagee and delivered in connection with this Security
Instrument (as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time, the “Assignment of Leases”), including the rights, remedies, obligations, covenants,
conditions, agreements, indemnities, representations and warranties of the parties therein, are
hereby incorporated by reference herein as though set forth in full and shall be considered a part
of this Security Instrument (the Loan Agreement, the Note, this Security Instrument, the Assignment
of Leases and all other documents evidencing or securing the Obligations (including all additional
mortgages, deeds of trust, deeds to secure debt and assignments of leases and rents) or executed or
delivered in connection therewith, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time, are hereinafter referred to collectively as the “Loan
Documents”); and

     WHEREAS, it is in the best interest of [Owner, Ground Lessee and Operating Lessee] to execute
this Security Instrument inasmuch as the                      Borrowers will derive substantial benefits from
this Loan.

     NOW, THEREFORE, in consideration of the making of the Loan by Administrative Agent, FCC and
the other Lenders to the Borrower and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged:

ARTICLE 1 — GRANTS OF SECURITY

     Section 1.1 Property Mortgaged. That for and in consideration of the sum of TEN AND
00/100 DOLLARS and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged,

          [(A) Owner does hereby irrevocably grant, bargain, sell, pledge, assign, warrant, transfer and
convey to Mortgagee, and grant a security interest to Mortgagee in, the fee simple estate of Owner,
now owned or hereafter acquired in and to the Land, subject to the Permitted Liens];

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          [(B) Ground Lessee does hereby irrevocably grant, bargain, sell, pledge, assign, warrant,
transfer and convey to Mortgagee, and grant a security interest to Mortgagee in, the Ground Lease
and the leasehold estate created thereby (the “Leasehold Estate”), subject to the Permitted Liens;
and]

          [(C) Operating Lessee does hereby irrevocably grant, bargain, sell, pledge, assign, warrant,
transfer and convey to Mortgagee, and grant a security interest to Mortgagee in, the Operating
Lease and the subleasehold estate created thereby in the Land, subject to the Permitted Liens;]

          TOGETHER WITH, in the case of each of [Owner, Ground Lessee and Operating Lessee], all right,
title, interest and the estate of each of the Mortgagors now owned or hereafter acquired in and to
the following property, rights, interests and estates (the foregoing property, rights, interests
and estates, together with the following property, rights, interests and estates being hereinafter
collectively referred to as the “Property”):

          (a) [Ground Lease. The Ground Lease and the Leasehold Estate, including all
assignments, modifications, extensions and renewals of the Ground Lease and all credits, deposits,
options, privileges and rights of Ground Lessee as tenant under the Ground Lease, including, but
not limited to, the right, if any, to renew or extend the Ground Lease for a succeeding term or
terms, and also including all the right, title, claim or demand whatsoever of Ground Lessee either
in law or in equity, in possession or expectancy, of, in and to Ground Lessee’s right, as tenant
under the Ground Lease, to elect under the Bankruptcy Code to terminate or treat the Ground Lease
as terminated or to consent to the transfer of Owner’s interest in the Land and the Improvements
free and clear of the Ground Lease under Section 363 of the Bankruptcy Code in the event of (i) the
bankruptcy, reorganization or insolvency of Owner, and (ii) (A) the rejection of the Ground Lease
by Owner, as debtor in possession, or by a trustee for Owner, pursuant to Section 365 of the
Bankruptcy Code or (B) any attempt by Owner, as debtor in possession, or by a trustee for Owner, to
transfer Owner’s interest in the Land and the Improvements under Section 363 of the Bankruptcy
Code;]

          (b) [Operating Lease. The Operating Lease and the subleasehold estate created thereby,
including all assignments, modifications, extensions and renewals of the Operating Lease and all
credits, deposits, options, privileges and rights of Operating Lessee as tenant under the Operating
Lease, including, but not limited to, rights of first refusal, if any, and the right, if any, to
renew or extend the Operating Lease for a succeeding term or terms, and also including all the
right, title, claim or demand whatsoever of Operating Lessee either in law or in equity, in
possession or expectancy, of, in and to Operating Lessee’s right, as tenant under the Operating
Lease, to elect under Section 365(h)(l) of the Bankruptcy Code, Title 11 U.S.C.A. §101 et seq. (the
“Bankruptcy Code”) to terminate or treat the Operating Lease as terminated in the event of (i) the
bankruptcy, reorganization or insolvency of the lessor thereunder, and (ii) the rejection of the
Operating Lease by the lessor thereunder, as debtor in possession, or by a trustee for the lessor
thereunder, pursuant to Section 365 of the Bankruptcy Code;]

          (c) Additional Land. All additional lands, estates and development rights hereafter
acquired by Mortgagors for use in connection with the Land and the development of the Land and all
additional lands and estates therein which may, from time to time, by supplemental mortgage or
otherwise be expressly made subject to the lien of this Security Instrument;

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          (d) Improvements. The buildings, structures, fixtures, additions, enlargements,
extensions, modifications, repairs, replacements and improvements now or hereafter erected or
located on the Land (the “Improvements”);

          (e) Easements. All easements, rights-of-way or use, rights, strips and gores of land,
streets, ways, alleys, passages, sewer rights, water, water courses, water rights and powers, air
rights and development rights, and all estates, rights, titles, interests, privileges, liberties,
servitudes, tenements, hereditaments and appurtenances of any nature whatsoever, in any way now or
hereafter belonging, relating or pertaining to the Land and the Improvements, including, but not
limited to, those arising under and by virtue of the [Operating Lease], and the reversion and
reversions, remainder and remainders, and all land lying in the bed of any street, road or avenue,
opened or proposed, in front of or adjoining the Land, to the center line thereof and all the
estates, rights, titles, interests, dower and rights of dower, curtesy and rights of curtesy,
property, possession, claim and demand whatsoever, both at law and in equity, of Mortgagors of, in
and to the Land and the Improvements, including, but not limited to, those arising under and by
virtue of [the Ground Lease and/or the Operating Lease] and every part and parcel thereof, with the
appurtenances thereto;

          (f) Fixtures and Personal Property. All machinery, equipment, fixtures (including,
but not limited to, all heating, air conditioning, plumbing, lighting, communications and elevator
fixtures, inventory and goods), inventory and articles of personal property and accessions thereof
and renewals, replacements thereof and substitutions therefor (including, but not limited to, beds,
bureaus, chiffonniers, chests, chairs, desks, lamps, mirrors, bookcases, tables, rugs, carpeting,
drapes, draperies, curtains, shades, venetian blinds, screens, paintings, hangings, pictures,
divans, couches, luggage carts, luggage racks, stools, sofas, chinaware, linens, pillows, blankets,
glassware, silverware, foodcarts, cookware, dry cleaning facilities, dining room wagons, keys or
other entry systems, bars, bar fixtures, liquor and other drink dispensers, icemakers, radios,
television sets, intercom and paging equipment, electric and electronic equipment, dictating
equipment, private telephone systems, medical equipment, potted plants, heating, lighting and
plumbing fixtures, fire prevention and extinguishing apparatus, cooling and air-conditioning
systems, elevators, escalators, fittings, plants, apparatus, stoves, ranges, refrigerators, laundry
machines, tools, machinery, engines, dynamos, motors, boilers, incinerators, switchboards,
conduits, compressors, vacuum cleaning systems, floor cleaning, waxing and polishing equipment,
call systems, brackets, electrical signs, bulbs, bells, ash and fuel, conveyors, cabinets, lockers,
shelving, spotlighting equipment, dishwashers, garbage disposals, washers and dryers), other
customary hotel equipment and other tangible property of every kind and nature whatsoever owned by
Mortgagors, or in which Mortgagors have or shall have an interest, now or hereafter located upon
the Land and the Improvements, or appurtenant thereto, and usable in connection with the present or
future operation and occupancy of the Land and the Improvements and all building equipment,
materials and supplies of any nature whatsoever owned by Mortgagors, or in which Mortgagors have or
shall have an interest, now or hereafter located upon the Land and the Improvements, or appurtenant
thereto, or usable in connection with the present or future operation and occupancy of the Land and
the Improvements (collectively, the “Personal Property”), and the right, title and interest of
Mortgagors in and to any of the Personal Property which may be subject to any security interests,
as defined in the Uniform Commercial Code, as adopted and enacted by the State or States where any
of the Property is located (the “Uniform Commercial Code”), superior in lien to the lien of this
Security Instrument and all proceeds and products of the above;

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          (g) Leases and Rents. All leases [(including the Ground Lease)], subleases
[(including the Operating Lease)], rental agreements, registration cards and agreements, if any,
and other agreements, whether or not in writing, affecting the use, enjoyment or occupancy of the
Land and/or the Improvements heretofore or hereafter entered into and all extensions, amendments
and modifications thereto, whether before or after the filing by or against Mortgagors of any
petition for relief under the Bankruptcy Code (the “Leases”) and all right, title and interest of
Mortgagors, their respective successors and assigns therein and thereunder, including, without
limitation, any guaranties of the lessees’ obligations thereunder, cash or securities deposited
thereunder to secure the performance by the lessees of their obligations thereunder and all rents,
additional rents, revenues, issues, registration fees, if any, and profits (including all oil and
gas or other mineral royalties and bonuses and all rents, revenues, bonus money, royalties, rights
and benefits accruing to Mortgagors under all present and future oil, gas and mineral leases on any
parts of the Land and the Improvements) from the Land and the Improvements, all income, rents, room
rates, issues, profits, revenues, deposits, accounts and other benefits from the operation of the
hotel on the Land and/or the Improvements, including, without limitation, all revenues and credit
card receipts collected from guest rooms, restaurants, bars, mini-bars, meeting rooms, banquet
rooms and recreational facilities and otherwise, all receivables, customer obligations, installment
payment obligations and other obligations now existing or hereafter arising or created out of sale,
lease, sublease, license, concession or other grant of the right of the possession, use or
occupancy of all or any portion of the Land and/or Improvements, or personalty located thereon, or
rendering of services by Mortgagors or any operator or manager of the hotel or the commercial space
located in the Improvements or acquired from others including, without limitation, from the rental
of any office space, retail space, commercial space, guest room or other space, halls, stores or
offices, including any deposits securing reservations of such space, exhibit or sales space of
every kind, license, lease, sublease and concession fees and rentals, health club membership fees,
food and beverage wholesale and retail sales, service charges, vending machine sales and proceeds,
if any, from business interruption or other loss of income insurance relating to the use, enjoyment
or occupancy of the Land and/or the Improvements whether paid or accruing before or after the
filing by or against Mortgagor of any petition for relief under the Bankruptcy Code (the “Rents”)
and all proceeds from the sale or other disposition of the Leases and the right to receive and
apply the Rents to the payment of the Obligations;

          (h) Condemnation Awards. All awards or payments, including interest thereon, which
may heretofore and hereafter be made with respect to the Land, the Improvements, the Personal
Property and the other Property granted under this Section 1.1, whether from the exercise
of the right of eminent domain (including but not limited to any transfer made in lieu of or in
anticipation of the exercise of the right), or for a change of grade, or for any other injury to or
decrease in the value of the Property;

          (i) Insurance Proceeds. All proceeds of and any unearned premiums on any insurance
policies covering the Land, the Improvements, the Personal Property and the other Property granted
under this Section 1.1, including, without limitation, the right to receive and apply the
proceeds of any insurance, judgments, or settlements made in lieu thereof, for damage to the
Property;

          (j) Tax Certiorari. All refunds, rebates or credits in connection with a reduction in
real estate taxes and assessments charged against the Land, the Improvements, the

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Personal Property and the other Property granted under this Section 1.1 as a result of
tax certiorari or any applications or proceedings for reduction;

          (k) Conversion. All proceeds of the conversion, voluntary or involuntary, of any of
the foregoing including, without limitation, proceeds of insurance and condemnation awards, into
cash or liquidation claims;

          (l) Rights. The right, in the name and on behalf of each of the Mortgagors, to appear
in and defend any action or proceeding brought with respect to the Property and to commence any
action or proceeding to protect the interest of Mortgagee in the Land, the Improvements, the
Personal Property and the other Property granted under this Section 1.1;

          (m) Agreements. Except for the Franchise Agreement (hereinafter defined), all
agreements, contracts, certificates, instruments, franchises, permits, licenses, plans,
specifications and other documents, now or hereafter entered into, and all rights therein and
thereto, respecting or pertaining to the use, occupation, construction, management or operation of
the Land and any part thereof and any Improvements or respecting any business or activity conducted
on the Land and any part thereof and all right, title and interest of any of the Mortgagors therein
and thereunder, including, without limitation, the right, upon the happening of any Event of
Default to receive and collect any sums payable to any of the Mortgagors thereunder;

          (n) Intangibles. All trade names, trademarks, servicemarks, logos, copyrights,
goodwill, books and records, tenant or guest lists, advertising materials, telephone exchange
numbers identified in such materials and all other general intangibles relating to or used in
connection with the operation of the Land, the Improvements and the Personal Property;

          (o) Accounts. All Accounts, Account Collateral, reserves, escrows and deposit
accounts maintained by any of the Mortgagors with respect to the Property, including, without
limitation, the Property Accounts, the Concentration Accounts and the Lockbox Account, and all
complete securities, investments, property and financial assets held therein from time to time and
all proceeds, products, distributions or dividends or substitutions thereon and thereof;

          (p) Causes of Action. All causes of action and claims (including, without limitation,
all causes of action or claims arising in tort, by contract, by fraud or by concealment of material
fact) against any Person for damages or injury to the Property or in connection with any
transactions financed in whole or in part by the proceeds of the Loan (“Causes of Action”);

          (q) Interest Rate Cap Agreement. All right, title, interest and claim of any of the
Mortgagors in, to, under or pursuant to any interest rate cap confirmation purchased by any of the
Mortgagors pursuant to the terms of the Loan Documents (the “Confirmation”), together with the
corresponding interest rate cap agreement relating thereto (the “Rate Agreement”), and in, to,
under or pursuant to any and all amendments, supplements and additions thereto (the Confirmation
and the Rate Agreement, together with any amendments, additions or supplements thereto being
hereinafter collectively referred to as the “Cap Agreement”), and all claims of Mortgagors for
breach by any counterparty of any covenant, agreement, representation or warranty contained in the
Cap Agreement;

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          (r) Accounts Receivables. All right, title and interest of each of the Mortgagors
arising from the operation of the Land and the Improvements in and to all payments for goods or
property sold or leased or for services rendered, whether or not yet earned by performance, and not
evidenced by an instrument or chattel paper, (hereinafter referred to as “Accounts Receivable”)
including, without limiting the generality of the foregoing, (i) all accounts, contract rights,
book debts, and notes arising from the operation of a hotel on the Land and the Improvements or
arising from the sale, lease or exchange of goods or other property and/or the performance of
services, (ii) each of the Mortgagors’ rights to payment from any consumer credit/charge card
organization or entities which sponsor and administer such cards as the American Express Card, the
Visa Card and the Mastercard, (iii) each of the Mortgagors’ rights in, to and under all purchase
orders for goods, services or other property, (iv) each of the Mortgagors’ rights to any goods,
services or other property represented by any of the foregoing, (v) monies due to or to become due
to each of the Mortgagors under all contracts for the sale, lease or exchange of goods or other
property and/or the performance of services including the right to payment of any interest or
finance charges in respect thereto (whether or not yet earned by performance on the part of the
respective Mortgagor) and (vi) all collateral security and guaranties of any kind given by any
person or entity with respect to any of the foregoing. Accounts Receivable shall include those now
existing or hereafter created, substitutions therefor, proceeds (whether cash or non-cash, movable
or immovable, tangible or intangible) received upon the sale, exchange, transfer, collection or
other disposition or substitution thereof and any and all of the foregoing and proceeds therefrom;

          (s) Security Interests. All right, title and interest of lessor under the [Operating
Lease] as secured party in the personal property and collateral pursuant to the security interest
granted by [Operating Lessee] to the lessor thereunder in the [Operating Lease] (the “Operating
Lease Security Agreement”);

          (t) Proceeds. All proceeds of any of the foregoing items set forth in Subsections
(a) through (s) above, including, without limitation, Insurance Proceeds and Awards and
Causes of Action which may at any time be converted into cash or liquidation claims; and

          (u) Other Rights. Any and all other rights of Mortgagors in and to the items set
forth in Subsections (a) through (t) above.

     Section 1.2 Assignment of Leases and Rents. Each of the Mortgagors hereby absolutely
and unconditionally assigns to Mortgagee all of such Mortgagor’s right, title and interest in and
to all current and future Leases and Rents [and the Operating Lease Security Agreement]; it being
intended by Mortgagors that this assignment constitutes a present, absolute assignment and not an
assignment for additional security only. Nevertheless, subject to the terms of this Section
1.2, Section 9.1(h) of this Security Instrument and the Loan Agreement, Mortgagee
grants to Mortgagors a revocable license to collect and receive the Rents. Subject to the terms of
the Loan Agreement relating to cash management at the Property, Mortgagors shall hold the Rents, or
a portion thereof sufficient to discharge all current sums due on the Obligations, for use in the
payment of such sums.

     Section 1.3 Security Agreement. This Security Instrument is both a real property
mortgage and a “security agreement” within the meaning of the Uniform Commercial Code. The
Property includes both real and personal property and all other rights and interests, whether
tangible or intangible in nature, of Mortgagors in the Property. By executing and delivering this
Security Instrument, each of the Mortgagors hereby grants to Mortgagee, as security for the

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Obligations, a security interest in the Personal Property and the other collateral given as
security for the repayment of the Obligations (whether denominated as part of the Property or
otherwise) to the extent that under applicable law the same would be governed by the Uniform
Commercial Code (collectively, “UCC Collateral”) to the full extent that the Personal Property and
other UCC Collateral may be subject to the Uniform Commercial Code.

     Section 1.4 Pledge of Monies Held. Mortgagors hereby pledge to Mortgagee any and all
monies now or hereafter held by Mortgagee, including, without limitation, any sums deposited in the
Reserve Funds, the Accounts, Net Proceeds and Awards, as additional security for the Obligations
until expended or applied as provided in the Loan Agreement or this Security Instrument.

     Section 1.5 Fixture Filing. Without in any manner limiting the generality of any of
the other provision of this Security Instrument: (a) some portions of the goods described or to
which reference is made herein are or are to become fixtures on the Land described or to which
reference is made herein or on Exhibit A attached to this Security Instrument; (b) this
Security Instrument is to be filed of record in the real estate records as a financing statement
and shall constitute a “fixture filing” for purposes of the Uniform Commercial Code; and (c)
Mortgagors are the record owners of the real estate or interests in the real estate constituting
the Property hereunder, subject to the Permitted Liens. Information concerning the security
interest herein granted may be obtained at the addresses set forth on the first page hereof. This
Security Instrument shall be effective as a financing statement filed as a fixture filing with
respect to all fixtures included within the Property and is to be filed for record in the real
property or other applicable records in the office of the County Clerk or Recorder, as applicable,
where the Property (including said fixtures) is situated. This Security Instrument shall also be
effective as a financing statement covering as-extracted minerals or the like (including oil and
gas) and accounts subject to the applicable provisions of the Uniform Commercial Code of the State
in which the Property is located, if applicable. The address of the Debtor (Mortgagor) is set
forth on the first page hereof and the address of the Secured Party (Mortgagee) is set forth below.
In that regard, the following information is provided:

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	Name of First Debtor:
	 	 
	 
	 	 
	Type of Organization:

	 	[Limited Partnership] [Limited Liability Company]
	 
	 	 
	State:

	 	[Delaware]
	 
	 	 
	Organizational ID Number:

	 	[Delaware                     ]
	 
	 	 
	Name of Secured Party:

	 	Fortress Credit Corp., as Administrative Agent
	 
	 	 
	Address of Secured Party:

	 	c/o Drawbridge Special Opportunities Fund LP

1345 Avenue of the Americas, 46th Floor

New York, New York 10105

Attention: James K. Noble, III, Esq.
	 
	 	 
	Name of Second Debtor:
	 	 
	 
	 	 
	Type of Organization:

	 	[Limited Partnership] [Limited Liability Company]
	 
	 	 
	State:

	 	[Delaware]
	 
	 	 
	Organizational ID Number:

	 	[Delaware                     ]
	 
	 	 
	Name of Secured Party:

	 	Fortress Credit Corp., as Administrative Agent
	 
	 	 
	Address of Secured Party:

	 	c/o Drawbridge Special Opportunities Fund LP

1345 Avenue of the Americas, 46th Floor

New York, New York 10105

Attention: James K. Noble, III, Esq.
	 
	 	 
	Name of Third Debtor:
	 	 
	 
	 	 
	Type of Organization:

	 	[Limited Partnership] [Limited Liability Company]
	 
	 	 
	State:

	 	[Delaware]
	 
	 	 
	Organizational ID Number:

	 	[Delaware                     ]
	 
	 	 
	Name of Secured Party:

	 	Fortress Credit Corp., as Administrative Agent
	 
	 	 
	Address of Secured Party:

	 	c/o Drawbridge Special Opportunities Fund LP

1345 Avenue of the Americas, 46th Floor

New York, New York 10105

Attention: James K. Noble, III, Esq.

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     Section 1.6 Conditions to Grant. TO HAVE AND TO HOLD the above granted and described
Property unto and to the use and benefit of Mortgagee, and for its successors and assigns, forever,
subject to the Permitted Liens; PROVIDED, HOWEVER, these presents are upon the express condition
that, if                     Borrowers shall well and truly pay to Mortgagee the Obligations at the time and
in the manner provided in the Loan Agreement, the Note and this Security Instrument, shall well and
truly perform the Other Obligations (hereinafter defined) as set forth in this Security Instrument
and shall well and truly abide by and comply with each and every covenant and condition set forth
herein, in the Note and in the Loan Agreement, these presents and the estate hereby granted shall
cease, terminate and be void.

ARTICLE 2 — DEBT AND OBLIGATIONS SECURED

     Section 2.1 Debt. This Security Instrument and the grants, assignments and transfers
made in Article 1 are given for the purpose of securing the Obligations, including without
limitation:

          (a) the payment of the indebtedness evidenced by the Note in lawful money of the United States
of America;

          (b) the payment of interest, default interest, late charges and other sums, as provided in the
Note, the Loan Agreement, this Security Instrument or the other Loan Documents;

          (c) the payment of the Breakage Costs, if any;

          (d) the payment of all other moneys agreed or provided to be paid by Borrowers in the Note,
the Loan Agreement, this Security Instrument or the other Loan Documents;

          (e) the payment of all sums advanced pursuant to the Loan Agreement or this Security
Instrument to protect and preserve the Property and the lien and the security interest created
hereby; and

          (f) the payment of all sums advanced and costs and expenses incurred by Mortgagee in
connection with the Obligations or any part thereof, any modification, amendment, renewal,
extension, or change of or substitution for the Obligations or any part thereof, or the acquisition
or perfection of the security therefor, whether made or incurred at the request of Mortgagors or
Mortgagee.

     Section 2.2 Other Obligations. This Security Instrument and the grants, assignments
and transfers made in Article 1 are also given for the purpose of securing the following (the
“Other Obligations”):

          (a) the performance of all other obligations of Mortgagors contained herein;

          (b) the performance of each obligation of Mortgagors contained in any other agreement given by
the applicable Mortgagor to Mortgagee which is for the purpose of further securing the obligations
secured hereby, and any renewals, extensions, substitutions, replacements, amendments,
modifications and changes thereto; and

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          (c) the performance of each obligation of Mortgagors contained in any renewal, extension,
amendment, modification, consolidation, change of, or substitution or replacement for, all or any
part of the Note, the Loan Agreement, this Security Instrument or the other Loan Documents.

ARTICLE 3 — MORTGAGOR COVENANTS

     Mortgagors covenant and agree as follows:

     Section 3.1 Payment of Obligations.                     Borrowers will pay and perform the
Obligations at the time and in the manner provided in the Note, the Loan Agreement, this Security
Instrument and the other Loan Documents.

     Section 3.2 Incorporation by Reference. All the covenants, conditions and agreements
contained in the Loan Agreement, the Note and all and any of the other Loan Documents, are hereby
made a part of this Security Instrument to the same extent and with the same force as if fully set
forth herein.

     Section 3.3 Insurance.                     Borrowers shall obtain and maintain, or cause to be
maintained, insurance in full force and effect at all times with respect to the Borrowers and the
Property as required pursuant to the Loan Agreement.

     Section 3.4 Payment of Taxes, etc.                     Borrowers shall promptly pay all Taxes
and Other Charges in accordance with the terms of the Loan Agreement.

     Section 3.5 Maintenance and Use of Property.                     Borrowers shall cause the
Property to be maintained in a good and safe condition and repair in accordance with the terms of
the Loan Agreement. Subject to the terms of the Loan Agreement, the Improvements and the Personal
Property shall not be removed, demolished or materially altered or expanded (except for normal
replacement of the Personal Property) without the consent of Mortgagee. Subject to the terms of
the Loan Agreement,                     Borrowers shall promptly repair, replace or rebuild any part of the
Property which may be destroyed by any Casualty, or become damaged, worn or dilapidated or which
may be affected by any Condemnation and shall complete and pay for any structure at any time in the
process of construction or repair on the Land. Subject to the terms of the Loan Agreement,
Mortgagors shall not initiate, join in, acquiesce in, or consent to any change in any private
restrictive covenant, zoning law or other public or private restriction, limiting or defining the
uses which may be made of the Property or any part thereof. If under applicable zoning provisions
the use of all or any portion of the Property is or shall become a nonconforming use, Mortgagors
will not cause or permit the nonconforming use to be discontinued or the nonconforming Improvement
to be abandoned without the express written consent of Mortgagee.

     Section 3.6 Waste. Mortgagors shall not commit or suffer any waste of the Property or
make any change in the use of the Property which will in any way materially increase the risk of
fire or other hazard arising out of the operation of the Property, or take any action that might
invalidate or give cause for cancellation of any Policy, or do or permit to be done thereon
anything that may in any way impair the value of the Property or the security of this Security
Instrument. Mortgagors will not, without the prior written consent of Mortgagee, permit any
drilling or exploration for or extraction, removal, or production of any minerals from the surface

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or the subsurface of the Land, regardless of the depth thereof or the method of mining or
extraction thereof.

     Section 3.7 Payment For Labor and Materials.

          (a) Subject to Section 3.7(b) below,                     Borrowers will promptly pay (or cause
to be paid) when due all bills and costs for labor, materials, and specifically fabricated
materials incurred in connection with the Property (each, a “Work Charge”) and never permit to
exist beyond the due date thereof in respect of the Property or any part thereof any Lien or
security interest other than the Permitted Liens, even though inferior to the Liens and the
security interests hereof, and in any event never permit to be created or exist in respect of the
Property or any part thereof any other or additional Lien or security interest other than the Liens
or security interests hereof except for the Permitted Liens.                     Borrowers represent there
are no claims for payment for work, labor or materials affecting the Property which are or may
become a Lien prior to, or of equal priority with, the Liens created by the Loan Documents.

          (b) After prior written notice to Mortgagee, any Mortgagor, at its own expense, may contest by
appropriate legal proceeding, promptly initiated and conducted in good faith and with due
diligence, the validity of any Work Charge, the applicability of any Work Charge to Mortgagors or
to the Property or any alleged non-payment of any Work Charge, provided that (i) no Event
of Default has occurred and is continuing; (ii) such proceeding shall be permitted under and be
conducted in accordance with the provisions of any instrument to which the applicable Mortgagor is
subject and shall not constitute a default thereunder and such proceeding shall be conducted in
accordance with all applicable Legal Requirements; (iii) neither the Property nor any part thereof
or interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost
during the duration of such legal proceeding; (iv) the applicable Mortgagor shall promptly upon
final determination thereof pay (or cause to be paid) any such Work Charge determined to be valid,
applicable and unpaid; (v) such proceeding shall suspend the collection of such contested Work
Charge from the Property, or Mortgagors shall have paid the same (or shall have caused the same to
be paid) under protest; and (vi) Mortgagors shall furnish (or cause to be furnished) such security
as may be required in the proceeding by applicable Laws or Legal Requirements, or as may be
reasonably requested by Mortgagee, to insure payment of such Work Charge, together with all
interest and penalties payable in connection therewith. Mortgagee may apply any such security or
part thereof, as necessary to pay for such Work Charge at any time when, in the sole but reasonable
judgment of Mortgagee, the validity, applicability and non-payment of such Work Charge is finally
established or the Property (or any part thereof or interest therein) shall be in danger of being
sold, forfeited, terminated, cancelled or lost during or as a result of such legal proceeding or
Work Charge.

     Section 3.8 Performance of Other Agreements. Mortgagors shall observe and perform
each and every term to be observed or performed by Mortgagors pursuant to the terms of the Loan
Agreement, any other Loan Documents and any agreement or recorded instrument affecting or
pertaining to the Property, including, but not limited to, the [Operating Lease] and any management
agreements or franchise agreements, or given by any Mortgagor to Mortgagee for the purpose of
further securing the Obligations and any amendments, modifications or changes thereto.

     Section 3.9 Change of Name, Identity or Structure. Except as may be permitted under
the Loan Agreement, no Mortgagor will change such Mortgagor’s name, identity (including its trade
name or names) or corporate, partnership or other structure without first obtaining the prior

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written consent of Mortgagee. Mortgagors shall execute and deliver to Mortgagee, prior to or
contemporaneously with the effective date of any such change, any financing statement or financing
statement change required by Mortgagee to establish or maintain the validity, perfection and
priority of the security interest granted herein. At the request of Mortgagee, Mortgagors shall
execute a certificate in form satisfactory to Mortgagee listing the trade names under which the
applicable Mortgagor intends to operate the Property, and representing and warranting that such
Mortgagor does business under no other trade name with respect to the Property.

     Section 3.10 Property Use. The Property shall be used only for a hotel and any
ancillary uses relating thereto, and for no other uses without the prior written consent of
Mortgagee, which consent may be withheld in Mortgagee’s sole and absolute discretion.

     Section 3.11 Compliance with Laws.

          (a) Subject to Section 7.1(b) of the Loan Agreement, Mortgagors shall promptly comply with all
Laws affecting the Property, or the use thereof, including Environmental Laws.

          (b) Mortgagors shall from time to time, upon Mortgagee’s reasonable request, provide Mortgagee
with evidence reasonably satisfactory to Mortgagee that the Property complies with all Laws or is
exempt from compliance with Laws.

          (c) Notwithstanding any provisions set forth herein or in any document regarding Mortgagee’s
approval of alterations of the Property, Mortgagors shall not alter the Property in any manner
which would materially increase Mortgagors’ responsibilities for compliance with Laws without the
prior written consent of Mortgagee. Mortgagee’s approval of the plans, specifications or working
drawings for alterations of the Property shall create no responsibility or liability on behalf of
Mortgagee for their completeness, design, sufficiency or their compliance with Laws. The foregoing
shall apply to tenant improvements constructed by Mortgagors or by any of their tenants. Mortgagee
may condition any such approval upon receipt of a certificate of compliance with Laws from an
independent architect, engineer or other Person reasonably acceptable to Mortgagee.

          (d) Mortgagors shall give prompt notice to Mortgagee of the receipt by Mortgagors of any
notice related to a violation of any Laws and of the commencement of any proceedings or
investigations which relate to compliance with Laws.

          (e) After prior written notice to Mortgagee, Mortgagors, at their own expense, may contest by
appropriate legal proceeding, promptly initiated and conducted in good faith and with due
diligence, the Laws affecting the Property, provided that (i) no Event of Default has
occurred and is continuing under the Note, this Security Agreement or any other Loan Document; (ii)
Mortgagors are permitted to do so under the provisions of any other mortgage, deed of trust or deed
to secure debt affecting the Property; (iii) such proceeding shall be permitted under and be
conducted in accordance with the provisions of any other instrument to which Mortgagors or the
Property is subject and shall not constitute a default thereunder; (iv) neither the Property, any
part thereof or interest therein, any of the tenants or occupants thereof, nor Mortgagors shall be
affected in any material adverse way as a result of initiating or prosecuting such proceeding; (v)
either non-compliance with the Laws shall not impose civil or criminal liability on Mortgagors or
Mortgagees or Mortgagors shall comply with the Laws

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during the pendency of the proceeding; (vi) Mortgagors shall have furnished the security as
may be required in the proceeding or by Mortgagee to ensure compliance by Mortgagors with the Laws;
and (vii) Mortgagors shall have furnished to Mortgagee all other items reasonably requested by
Mortgagee.

ARTICLE 4 — REPRESENTATIONS AND WARRANTIES

     Mortgagors represent and warrant to Mortgagee that:

     Section 4.1 Warranty of Title. Mortgagors have good fee or leasehold title, as
applicable, to the Property and have the right to mortgage, grant, bargain, sell, pledge, assign,
warrant, transfer and convey the same. [(i) Owner possesses an unencumbered fee simple absolute
estate, (ii) Ground Lessee possesses an unencumbered leasehold interest (created by and pursuant to
the Ground Lease) in the Land and the Improvements and (iii) Operating Lessee possesses an
unencumbered leasehold estate (created by and pursuant to the terms of the Operating Lease) in the
Land and the Improvements]. [Owner owns the Property free and clear of all liens, encumbrances and
charges whatsoever except for the Permitted Liens]. The Permitted Liens do not and will not
materially adversely affect or interfere with the value, or materially adversely affect or
interfere with the current use or operation, of the Property, or the security intended to be
provided by this Security Instrument or the ability of                     Borrowers to repay the Note or any
other amount owing under the Note, this Security Instrument, the Loan Agreement, or the other Loan
Documents or to perform its obligations thereunder in accordance with the terms of the Loan
Agreement, the Note, this Security Instrument or the other Loan Documents. This Security
Instrument, when properly recorded in the appropriate records, together with the Assignment of
Leases and any Uniform Commercial Code financing statements required to be filed in connection
therewith, will create (i) a valid, perfected first priority lien on the Property, subject only to
Permitted Liens and (ii) perfected security interests in and to, and perfected collateral
assignments of, all personalty (including the Leases), all in accordance with the terms thereof,
subject only to Permitted Liens. The Assignment of Leases, when properly recorded in the
appropriate records, creates a valid first priority assignment of, or a valid first priority
security interest in, certain rights under the related Leases, subject only to a license granted to
Mortgagors to exercise certain rights and to perform certain obligations of the lessor under such
Leases, including the right to operate the Property. No Person other than Mortgagors owns any
interest in any payments due under such Leases that is superior to or of equal priority with the
Mortgagee’s interest therein. Mortgagors shall forever warrant, defend and preserve the title and
the validity and priority of the lien of this Security Instrument and shall forever warrant and
defend the same to Mortgagee against the claims of all persons whomsoever.

ARTICLE 5 — OBLIGATIONS AND RELIANCES

     Section 5.1 Relationship of Mortgagors and Mortgagee. The relationship between
Mortgagors and Mortgagee is solely that of debtor and creditor, and Mortgagee has no fiduciary or
other special relationship with any of the Mortgagors, and no term or condition of any of the Loan
Agreement, the Note, this Security Instrument and the other Loan Documents shall be construed so as
to deem the relationship between Mortgagors and Mortgagee to be other than that of debtor and
creditor.

     Section 5.2 No Reliance on Mortgagee. The members, general partners, principals and
(if any Mortgagor is a trust) beneficial owners of Mortgagors are experienced in the

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ownership and operation of properties similar to the Property, and Mortgagors and Mortgagee
are relying solely upon such expertise and business plan in connection with the ownership and
operation of the Property. Mortgagors are not relying on Mortgagee’s expertise, business acumen or
advice in connection with the Property.

     Section 5.3 No Mortgagee or Mortgagee Obligations. (a) Notwithstanding the
provisions of Section 1.1(g), (l) and (m) or Section 1.2, Mortgagee
is not undertaking the performance of (i) any obligations under the Leases; or (ii) any obligations
with respect to such agreements, contracts, certificates, instruments, franchises, permits,
trademarks, licenses and other documents.

          (b) By accepting or approving anything required to be observed, performed or fulfilled or to
be given to Mortgagee pursuant to this Security Instrument, the Loan Agreement, the Note or the
other Loan Documents, including without limitation, any officer’s certificate, balance sheet,
statement of profit and loss or other financial statement, survey, appraisal, or insurance policy,
Mortgagee shall not be deemed to have warranted, consented to, or affirmed the sufficiency, the
legality or effectiveness of same, and such acceptance or approval thereof shall not constitute any
warranty or affirmation with respect thereto by Mortgagee.

     Section 5.4 Reliance. Mortgagors recognize and acknowledge that in accepting the
Note, the Loan Agreement, this Security Instrument and the other Loan Documents, (i) Mortgagee is
expressly and primarily relying on the truth and accuracy of the warranties and representations set
forth in Article 6 of the Loan Agreement and Articles 3 and 4 hereof
without any obligation to investigate the Property and notwithstanding any investigation of the
Property by Mortgagee; (ii) that such reliance existed on the part of Mortgagee prior to the date
hereof; (iii) that the warranties and representations are a material inducement to Mortgagee in
accepting the Note, the Loan Agreement, this Security Instrument and the other Loan Documents; and
that Mortgagee would not be willing to make the Loan and accept this Security Instrument in the
absence of the warranties and representations as set forth in Article 6 of the Loan
Agreement and Articles 3 and 4 hereof.

ARTICLE 6 — FURTHER ASSURANCES

     Section 6.1 Recording of Security Instrument, etc. Mortgagors forthwith upon the
execution and delivery of this Security Instrument and thereafter, from time to time, will cause
this Security Instrument and any of the other Loan Documents creating a lien or security interest
or evidencing the lien hereof upon the Property and each instrument of further assurance to be
filed, registered or recorded in such manner and in such places as may be required by any present
or future law in order to publish notice of and fully to protect and perfect the lien or security
interest hereof upon, and the interest of Mortgagee in, the Property.                     Borrowers will pay
all taxes, filing, registration or recording fees, and all expenses incident to the preparation,
execution, acknowledgment and/or recording of the Note, the Loan Agreement, this Security
Instrument, the other Loan Documents, and any instrument of further assurance, and any modification
or amendment of the foregoing documents, and all federal, state, county and municipal taxes,
duties, imposts, assessments and charges arising out of or in connection with the execution and
delivery of this Security Instrument, the other Loan Documents, or any instrument of further
assurance, and any modification or amendment of the foregoing documents, except where prohibited by
law so to do.

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     Section 6.2 Further Acts, etc. Mortgagors will, at the cost of Mortgagors, and
without expense to Mortgagee, do, execute, acknowledge and deliver all and every such further acts,
deeds, conveyances, deeds of trust, mortgages, assignments, notices of assignments, transfers and
assurances as Mortgagee shall, from time to time, reasonably require, for the better assuring,
conveying, assigning, transferring, and confirming unto Mortgagee the Property and rights hereby
deeded, mortgaged, granted, bargained, sold, conveyed, confirmed, pledged, assigned, warranted and
transferred or intended now or hereafter so to be, or which Mortgagors may be or may hereafter
become bound to convey or assign to Mortgagee, or for carrying out the intention or facilitating
the performance of the terms of this Security Instrument or for filing, registering or recording
this Security Instrument, or for complying with all Legal Requirements. Mortgagors, on demand,
will execute and deliver and hereby authorize Mortgagee, following ten (10) days’ notice to the
applicable Mortgagor(s), to execute in the name of such Mortgagor(s) or without the signature of
such Mortgagor(s) to the extent Mortgagee may lawfully do so, one or more financing statements,
chattel mortgages or other instruments, to evidence more effectively the security interest of
Mortgagee in the Property or any UCC Collateral. Mortgagors grant to Mortgagee an irrevocable
power of attorney coupled with an interest for the purpose of, from and after an Event of Default
(as defined in the Loan Agreement), exercising and perfecting any and all rights and remedies
available to Mortgagee at law and in equity, including, without limitation, such rights and
remedies available to Mortgagee pursuant to this Section 6.2.

     Section 6.3 Changes in Tax, Debt Credit and Documentary Stamp Laws.

          (a) If any law is enacted or adopted or amended after the date of this Security Instrument
which deducts the amount of the Obligations from the value of the Property for the purpose of
taxation or which imposes a tax, either directly or indirectly, on the amount of the Obligations or
Mortgagee’s interest in the Property,                     Borrowers will pay the tax, with interest and
penalties thereon, if any. If Mortgagee is advised by counsel chosen by it that the payment of tax
by                     Borrowers would be unlawful or taxable to Mortgagee or unenforceable or provide the
basis for a defense of usury, then Mortgagee shall have the option, exercisable by written notice
of not less than ninety (90) days to declare the Obligations immediately due and payable.

          (b) Mortgagors will not claim or demand or be entitled to any credit or credits on account of
the Obligations for any part of the Taxes or Other Charges assessed against the Property, or any
part thereof, and no deduction shall otherwise be made or claimed from the assessed value of the
Property, or any part thereof, for real estate tax purposes by reason of this Security Instrument
or the Obligations. If such claim, credit or deduction shall be required by law, Mortgagee shall
have the option, exercisable by written notice of not less than ninety (90) days, to declare the
Obligations immediately due and payable.

          (c) If at any time the United States of America, any State thereof or any subdivision of any
such State shall require revenue or other stamps to be affixed to the Note, the Loan Agreement,
this Security Instrument, or any of the other Loan Documents or impose any other tax or charge on
the same, Mortgagors will pay for the same, with interest and penalties thereon, if any.

     Section 6.4 Replacement Documents. Upon receipt of an affidavit of an officer of
Mortgagee as to the loss, theft, destruction or mutilation of the Note or any other Loan Document
which is not of public record, and, in the case of any such mutilation, upon surrender and
cancellation of such Note or other Loan Documents,                     Borrowers will issue, in lieu

16

 

thereof, a replacement Note or other Loan Documents, dated the date of such lost, stolen,
destroyed or mutilated Note or other Loan Documents in the same principal amount thereof and
containing substantially identical terms.

     Section 6.5 Performance at Mortgagors’ Expense. Mortgagors acknowledge and confirm
that Mortgagee shall impose certain administrative processing and/or commitment fees in connection
with (a) the extension, renewal, modification, amendment and termination of the Loan, (b) the
release or substitution of collateral therefor, (c) obtaining certain consents, waivers and
approvals with respect to the Property, or (d) the review of any Lease or proposed Lease or the
preparation or review of any subordination, non-disturbance agreement (the occurrence of any of the
above shall be called an “Event”). Mortgagors further acknowledge and confirm that Mortgagors
shall be responsible for the payment of all costs of reappraisal of the Property or any part
thereof, whether required by law, regulation, Mortgagee or any governmental or quasi-governmental
authority. Mortgagors hereby acknowledge and agree to pay, immediately, with or without demand,
all such fees (as the same may be increased or decreased from time to time), and any additional
fees of a similar type or nature which may be imposed by Mortgagee from time to time, upon the
occurrence of any Event. Wherever it is provided for herein that Mortgagors pay any costs and
expenses, such costs and expenses shall include, but not be limited to, all reasonable legal fees
and disbursements of Mortgagee (excluding legal fees for in-house staff), whether with respect to
retained firms or otherwise.

     Section 6.6 Legal Fees for Enforcement. (a) Mortgagors shall pay all reasonable legal
fees incurred by Mortgagee in connection with (i) the preparation of the Loan Agreement, the Note,
this Security Instrument and the other Loan Documents and (ii) the items set forth in Section
6.5 above, and (b) Mortgagors shall pay to Mortgagee on demand any and all expenses, including
legal expenses and reasonable attorneys’ fees, incurred or paid by Mortgagee in protecting its
interest in the Property or in collecting any amount payable hereunder or in enforcing its rights
hereunder with respect to the Property (including commencing any foreclosure action), whether or
not any legal proceeding is commenced hereunder or thereunder, together with interest thereon at
the Default Rate from the date paid or incurred by Mortgagee until such expenses are paid by
Mortgagors.

ARTICLE 7 — DUE ON SALE/ENCUMBRANCE

     Section 7.1 Mortgagee Reliance. Mortgagors acknowledge that Mortgagee has examined
and relied on the experience of Mortgagors and its partners, members, principals and (if any
Mortgagor is a trust) beneficial owners in owning and operating properties such as the Property in
agreeing to make the Loan, and will continue to rely on Mortgagors’ ownership of the Property as a
means of maintaining the value of the Property as security for payment and performance of the
Obligations. Mortgagors acknowledge that Mortgagee has a valid interest in maintaining the value
of the Property so as to ensure that, should Mortgagors default in the payment and performance of
the Obligations, Mortgagee can recover the Obligations by a sale of the Property.

     Section 7.2 No Sale/Encumbrance. No Mortgagor nor any Restricted Party shall Transfer
the Property or any part thereof or any interest therein or permit or suffer the Property or any
part thereof or any interest therein to be Transferred other than as expressly permitted pursuant
to the terms of the Loan Agreement.

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ARTICLE 8 — PREPAYMENT

     Section 8.1 Prepayment. The Obligations may not be prepaid in whole or in part except
in accordance with the express terms and conditions of the Loan Agreement.

ARTICLE 9 — RIGHTS AND REMEDIES

     Section 9.1 Remedies. Upon the occurrence and during the continuance of any Event of
Default, Mortgagors agree that Mortgagee may take such action, without notice or demand, as it
deems advisable to protect and enforce its rights against one or more of the Mortgagors and in and
to the Property (or any portion thereof), including, but not limited to, the following actions,
each of which may be pursued concurrently or otherwise, at such time and in such order as Mortgagee
may determine, in its sole discretion, without impairing or otherwise affecting the other rights
and remedies of Mortgagee:

          (a) declare the entire unpaid Obligations to be immediately due and payable; provided,
however, that notwithstanding the foregoing, if and to the extent the Loan Agreement
provides for automatic acceleration of the Loan upon the occurrence of certain Events of Default,
such provisions with respect to automatic acceleration shall govern and control, without any
further notice, demand or any other action by Mortgagee or any other Person;

          (b) institute proceedings, judicial or otherwise, for the complete foreclosure of this
Security Instrument under any applicable provision of law in which case the Property or any
interest therein (or any portion thereof) may be sold for cash or upon credit in one or more
parcels or in several interests or portions and in any order or manner;

          (c) with or without entry, to the extent permitted and pursuant to the procedures provided by
Law, institute proceedings for the partial foreclosure of this Security Instrument for the portion
of the Obligations then due and payable, subject to the continuing lien and security interest of
this Security Instrument for the balance of the Obligations not then due, unimpaired and without
loss of priority;

          (d) sell for cash or upon credit the Property or any part thereof and all estate, claim,
demand, right, title and interest of one or more of the Mortgagors therein and rights of redemption
thereof, pursuant to power of sale or otherwise, at one or more sales, in one or more parcels, at
such time and place, upon such terms and after such notice thereof as may be required or permitted
by Law;

          (e) institute an action, suit or proceeding in equity for the specific performance of any
covenant, condition or agreement contained herein, in the Note, the Loan Agreement, or in the other
Loan Documents;

          (f) recover judgment on the Note either before, during or after any proceedings for the
enforcement of this Security Instrument or the other Loan Documents;

          (g) apply for the appointment of a receiver, trustee, liquidator or conservator of the
Property, without notice and without regard for the adequacy of the security for the Obligations
and without regard for the solvency of any of the Mortgagors, any Guarantor or of any Person liable
for the payment of the Obligations;

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          (h) subject to any Law, the license granted to Mortgagors under Section 1.2 hereof
shall automatically be revoked, and Mortgagee may enter into or upon the Property, either
personally or by its agents, nominees or attorneys and dispossess one or more of the Mortgagors and
its agents and servants therefrom, without liability for trespass, damages or otherwise and exclude
one or more of the Mortgagors and their respective agents, licensees or servants wholly therefrom,
and take possession of all books, records and accounts relating thereto, and each Mortgagor agrees
to surrender possession of the Property and of such books, records and accounts to Mortgagee upon
demand, and thereupon Mortgagee may (i) use, operate, manage, control, insure, maintain, repair,
restore and otherwise deal with all and every part of the Property and conduct business thereon;
(ii) complete any construction on the Property in such manner and form as Mortgagee deems
advisable; (iii) make reasonably necessary alterations, additions, renewals, replacements and
improvements to or on the Property to preserve the same good condition; (iv) exercise all rights
and powers of each of the Mortgagors with respect to the Property, whether in the name of such
Mortgagor(s) or otherwise, including, without limitation, the right to make, cancel, enforce or
modify Leases, obtain and evict tenants, and demand, sue for, collect and receive all Rents of the
Property and every part thereof; (v) require one or more of the Mortgagors to pay monthly in
advance to Mortgagee, or any receiver appointed to collect the Rents, the fair and reasonable
rental value for the use and occupation of such part of the Property as may be occupied by
Mortgagors; (vi) require one or more of the Mortgagors to vacate and surrender possession of the
Property to Mortgagee or to such receiver and, in default thereof, Mortgagors may be evicted by
summary proceedings or otherwise; and (vii) except as otherwise expressly provided for in the Loan
Agreement, apply the receipts from the Property to the payment of the Obligations, in such order,
priority and proportions as Mortgagee shall deem appropriate in its sole discretion after deducting
therefrom all expenses (including reasonable attorneys’ fees) incurred in connection with the
aforesaid operations and all amounts necessary to pay the Taxes, Other Charges, Insurance Premiums
and other expenses in connection with the Property, as well as just and reasonable compensation for
the services of Mortgagee, its outside counsel, agents and, to the extent hired or engaged
expressly and solely for this purpose, its employees;

          (i) exercise any and all rights and remedies granted to a secured party upon default under the
Uniform Commercial Code, including, without limiting the generality of the foregoing: (i) the right
to take possession of any UCC Collateral (including, without limitation, the Personal Property) or
any part thereof, and to take such other measures as Mortgagee may deem necessary for the care,
protection and preservation of the UCC Collateral (including, without limitation, the Personal
Property), and (ii) request one or more of the Mortgagors at its respective expense to assemble the
UCC Collateral, including without limitation, the Personal Property, and make it available to
Mortgagee at a convenient place acceptable to Mortgagee. Any notice of sale, disposition or other
intended action by Mortgagee with respect to the UCC Collateral, including, without limitation, the
Personal Property, sent to Mortgagors in accordance with the provisions hereof at least five (5)
days prior to such action, shall constitute commercially reasonable notice to Mortgagors;

          (j) apply any sums then deposited in the Accounts and any other sums held in escrow or
otherwise by Mortgagee in accordance with the terms of this Security Instrument, the Loan
Agreement, or any other Loan Documents to the payment of the following items in any order in its
sole discretion:

          (i) Taxes and Other Charges;

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          (ii) Insurance Premiums;

          (iii) interest on the unpaid principal balance of the Note;

          (iv) amortization of the unpaid principal balance of the Note; or

          (v) all other sums payable pursuant to the Note, the Loan Agreement, this Security
Instrument and the other Loan Documents, including, without limitation, advances made by
Mortgagee pursuant to the terms of this Security Instrument;

          (k) surrender the Policies, collect the unearned Insurance Premiums and apply such sums as a
credit on the Obligations in such priority and proportion as Mortgagee in its discretion shall deem
proper, and in connection therewith, Mortgagors hereby appoint Mortgagee as agent and
attorney-in-fact (which is coupled with an interest and is therefore irrevocable) for Mortgagors to
collect such Insurance Premiums;

          (l) apply the undisbursed balance of any Net Proceeds Deficiency deposit, together with
interest thereon, to the payment of the Obligations in such order, priority and proportions as
Mortgagee shall deem to be appropriate in its discretion;

          (m) foreclose by power of sale or otherwise and apply the proceeds of any recovery to the
Obligations in accordance with Section 9.2 or to any deficiency under this Security
Instrument;

          (n) exercise all rights and remedies under any Causes of Action, whether before or after any
sale of the Property by foreclosure, power of sale, or otherwise and apply the proceeds of any
recovery to the Obligations in accordance with Section 9.2 or to any deficiency under this
Security Instrument; or

          (o) pursue such other remedies as Mortgagee may have under Law.

In the event of a sale, by foreclosure, power of sale, or otherwise, of less than all of the
Property, this Security Instrument shall continue as a lien and security interest on the remaining
portion of the Property unimpaired and without loss of priority.

     Section 9.2 Application of Proceeds. Except as otherwise expressly set forth in the
Loan Agreement, the purchase money, proceeds and avails of any disposition of the Property, or any
part thereof, or any other sums collected by Mortgagee pursuant to the Note, this Security
Instrument, the Loan Agreement, or the other Loan Documents, may be applied by Mortgagee to the
payment of the Obligations in such priority and proportions as Mortgagee in its discretion shall
deem proper.

     Section 9.3 Right to Cure Defaults. Upon the occurrence and during the continuance of
any Default or Event of Default, Mortgagee may, but without any obligation to do so and without
notice to or demand on Mortgagors and without releasing Mortgagors from any obligation hereunder,
cure any default of any of the Mortgagors’ obligation under the Loan Documents in such manner and
to such extent as Mortgagee may deem necessary to protect the security hereof. Mortgagee is
authorized to enter upon the Property for such purposes, or appear in, defend, or bring any action
or proceeding to protect its interest in the Property or to foreclose this Security Instrument or
collect the Obligations. The cost and expense of any cure hereunder

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(including reasonable attorneys’ fees to the extent permitted by Law), with interest as
provided below, shall constitute a portion of the Obligations and shall be due and payable to
Mortgagee upon demand. All such costs and expenses incurred by Mortgagee in remedying such Default
or Event of Default shall bear interest at the Default Rate for the period after notice from
Mortgagee that such cost or expense was incurred to the date of payment to Mortgagee and shall be
deemed to constitute a portion of the Obligations and be secured by this Security Instrument and
the other Loan Documents and shall be immediately due and payable upon demand by Mortgagee
therefor.

     Section 9.4 Actions and Proceedings. Mortgagee has the right to appear in and defend
any action or proceeding brought with respect to the Property and, after the occurrence and during
the continuance of an Event of Default, to bring any action or proceeding, in the name and on
behalf of any of the Mortgagors, which Mortgagee, in its discretion, decides should be brought to
protect its interest in the Property.

     Section 9.5 Recovery of Sums Required To Be Paid. Mortgagee shall have the right from
time to time to take action to recover any sum or sums which constitute a part of the Obligations
as the same become due, without regard to whether or not the balance of the Obligations shall be
due, and without prejudice to the right of Mortgagee thereafter to bring an action of foreclosure,
or any other action, for a Default or Defaults by one or more of the Mortgagors existing at the
time such earlier action was commenced.

     Section 9.6 Other Rights, etc. (a) The failure of Mortgagee to insist upon strict
performance of any term hereof shall not be deemed to be a waiver of any term of this Security
Instrument. Mortgagors shall not be relieved of Mortgagors’ obligations hereunder by reason of (i)
the failure of Mortgagee to comply with any request of any Mortgagor or any Guarantor to take any
action to foreclose this Security Instrument or otherwise enforce any of the provisions hereof or
of the Note or the other Loan Documents, (ii) the release, regardless of consideration, of the
whole or any part of the Property, or of any person liable for the Obligations or any portion
thereof, or (iii) any agreement or stipulation by Mortgagee extending the time of payment or
otherwise modifying or supplementing the terms of the Note, the Loan Agreement, this Security
Instrument or the other Loan Documents.

          (b) It is agreed that the risk of loss or damage to the Property is on Mortgagors, and
Mortgagee shall have no liability whatsoever for decline in value of the Property, for failure to
maintain the Policies, or for failure to determine whether insurance in force is adequate as to the
amount of risks insured. Possession by Mortgagee shall not be deemed an election of judicial
relief, if any such possession is requested or obtained, with respect to the Property or any other
UCC Collateral not in Mortgagee’s possession.

          (c) Mortgagee may resort for the payment of the Obligations to any other security held by
Mortgagee in such order and manner as Mortgagee, in its discretion, may elect. Mortgagee may take
action to recover the Obligations, or any portion thereof, or to enforce any covenant hereof
without prejudice to the right of Mortgagee thereafter to foreclose this Security Instrument. The
rights of Mortgagee under this Security Instrument shall be separate, distinct and cumulative and
none shall be given effect to the exclusion of the others. No act of Mortgagee shall be construed
as an election to proceed under any one provision herein to the exclusion of any other provision.
Mortgagee shall not be limited exclusively to the rights and remedies herein stated but shall be
entitled to every right and remedy now or hereafter afforded at law or in equity.

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     Section 9.7 Right to Release Any Portion of the Property. Mortgagee may release any
portion of the Property for such consideration as Mortgagee may require without, as to the
remainder of the Property, in any way impairing or affecting the lien or priority of this Security
Instrument, or improving the position of any subordinate lienholder with respect thereto, except to
the extent that the obligations hereunder shall have been reduced by the actual monetary
consideration, if any, received by Mortgagee for such release, and may accept by assignment, pledge
or otherwise any other property in place thereof as Mortgagee may require without being accountable
for so doing to any other lienholder. This Security Instrument shall continue as a lien and
security interest in the remaining portion of the Property.

     Section 9.8 Violation of Laws. Subject to Section 7.1(b) of the Loan Agreement, if
the Property is not in compliance with Legal Requirements, Mortgagee may impose reasonable
additional requirements upon Mortgagors in connection herewith including, without limitation,
monetary reserves or financial equivalents.

     Section 9.9 Right of Entry. Subject to the terms of the Loan Agreement, Mortgagee and
its agents shall have the right to enter and inspect the Property at all reasonable times.

     Section 9.10 Subrogation. If any or all of the proceeds of the Note have been used to
extinguish, extend or renew any indebtedness heretofore existing against the Property, then, to the
extent of the funds so used, to the extent permitted by Law, Mortgagee shall be subrogated to all
of the rights, claims, liens, titles, and interests existing against the Property heretofore held
by, or in favor of, the holder of such indebtedness and such former rights, claims, liens, titles,
and interests, if any, are not waived but rather are continued in full force and effect in favor of
Mortgagee and are merged with the lien and security interest created herein as cumulative security
for the repayment of the Obligations, and the performance and discharge of the Obligations.

     Section 9.11 Additional Provisions. With respect to the Personal Property, until the
Obligations are paid and performed in full or this Security Instrument is otherwise released by
written instrument executed by Mortgagee and authorized to be recorded in the applicable public
records of the jurisdiction in which the Property is located, Mortgagee is hereby irrevocably
appointed the true and lawful attorney of Mortgagors (coupled with an interest), in Mortgagors’
names and stead, to, upon and during the continuance of any Event of Default, make all necessary
conveyances, assignments, transfers and deliveries of the Personal Property, and for that purpose
Mortgagee may execute all necessary instruments of conveyance, assignment, transfer and delivery,
and may substitute one or more Persons with such power, Mortgagors hereby ratifying and confirming
all that the said attorney or such substitute or substitutes shall lawfully do by virtue hereof.
Notwithstanding the foregoing, Mortgagors, if so requested by Mortgagee, shall ratify and confirm
any such sale or sales by executing and delivering to Mortgagee or to such purchaser or purchasers
all such instruments as may be advisable, in the judgment of Mortgagee, for such purpose, and as
may be designated in such request. To the extent permitted by Laws, any such sale or sales made
under or by virtue of this Section 9.11 shall operate to divest all the estate, right,
title, interest, claim and demand whatsoever, whether at law, or in equity, of Mortgagors in and to
the properties and rights so sold, and shall be a perpetual bar both at law and in equity against
Mortgagors and against any and all Persons claiming or who may claim the same, or any part thereof,
from, through or under Mortgagors. Upon any sale made under or by virtue of this Section
9.11, Mortgagee may, to the extent permitted by Laws, bid for and acquire the Property or any
part thereof and in lieu of paying cash therefor may make settlement for the purchase price by
crediting upon the Obligations secured

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hereby the net sales price after deducting therefrom the expenses of the sale and the cost of
the auction and any other sums which Mortgagee is authorized to deduct by Laws or under this
Security Instrument. At any sale pursuant to this Section 9.11, whether made under power
herein granted, under or as otherwise authorized by applicable Laws or pursuant to Legal
Requirements, or by virtue of any judicial proceeding or any other legal right, remedy or recourse,
it shall not be necessary for Mortgagee to be physically present, or to have constructive
possession of, the Property, and the title to and right of possession of any such property shall
pass to the purchaser thereof as completely as if the same had been actually presented and
delivered to the purchaser at such sale.

ARTICLE 10 — INDEMNIFICATIONS

     Section 10.1 General Indemnification. Mortgagors shall, at their sole cost and
expense, protect, defend, indemnify, release and hold harmless the Indemnitees from and against any
and all losses, claims, damages, liabilities and related expenses (including the reasonable fees,
charges and disbursements of any counsel for an Indemnitee) (collectively, “Losses”) imposed upon
or incurred by or asserted against any Indemnitees and directly or indirectly arising out of or in
any way relating to any one or more of the following: (a) any accident, injury to or death of
persons or loss of or damage to property occurring in, on or about the Property or any part thereof
or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways;
(b) any use, nonuse or condition in, on or about the Property or any part thereof or on the
adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways;
(c) performance of any labor or services or the furnishing of any materials or other property in
respect of the Property or any part thereof; (d) any failure of the Property to be in compliance
with any Legal Requirements; (e) any and all claims and demands whatsoever which may be asserted
against Mortgagee by reason of any alleged obligations or undertakings on its part to perform or
discharge any of the terms, covenants, or agreements contained in any Lease; or (f) the payment of
any commission, charge or brokerage fee to anyone which may be payable in connection with the
funding of the Loan evidenced by the Note and secured by this Security Instrument provided
that such indemnity shall not, as to any Indemnitee, be available to the extent that such Losses
(i) are determined by a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee or (ii) result from a
claim brought by any Mortgagor or other Loan Party against an Indemnitee for breach in bad faith of
such Indemnitee’s obligations hereunder or under any other Loan Document, if any Mortgagor or such
other Loan Party has obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction. Any amounts payable to Mortgagee by reason of the
application of this Section 10.1 shall become immediately due and payable and shall bear
interest at the Default Rate from the date loss or damage is sustained by Mortgagee until paid.

     Section 10.2 Mortgage and/or Intangible Tax. Mortgagors shall, at their sole cost and
expense, protect, defend, indemnify, release and hold harmless the Indemnitees from and against any
and all Losses upon or incurred by or asserted against any Indemnitees and directly or indirectly
arising out of or in any way relating to any tax on the making and/or recording of this Security
Instrument, the Loan Agreement, the Note or any other Loan Document.

     Section 10.3 Duty to Defend; Legal Fees and other Fees and Expenses. Upon written
request by any Indemnitee, Mortgagors shall defend such Indemnitee (if requested by any Indemnitee,
in the name of the Indemnitee) by attorneys and other professionals reasonably approved by the
Indemnitee. Notwithstanding the foregoing, any Indemnitee may, in its sole

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discretion, engage its own attorneys and other professional to defend or assist it, and, at
the option of the Indemnitee, its attorneys shall act as co-counsel in connection with the
resolution of any claim or proceeding; provided, however, that upon and during the
continuance of any Event of Default under the Note, this Security Agreement or any of the other
Loan Documents, the attorneys of Indemnitee shall control the resolution of any claim or
proceeding. Upon demand, Mortgagors shall pay or, in the sole discretion of the Indemnitees,
reimburse, the Indemnitees for the payment of reasonable fees and disbursements of attorneys,
engineers, environmental consultants, laboratories and other professionals in connection therewith.

     Section 10.4 Environmental Indemnity; Environmental Covenants.

          (a) Simultaneously with this Security Instrument, Borrowers and Guarantor have executed and
delivered the Environmental Indemnity.

          (b) Certain Loan Parties have provided representations, warranties and covenants regarding
environmental matters set forth either in the Loan Agreement or in the Environmental Indemnity, and
Mortgagors shall comply with the aforesaid covenants regarding environmental matters.

     Section 10.5 Mortgagee’s Rights. Mortgagee and any other Person designated by
Mortgagee, including, but not limited to, any representative of a Governmental Authority, and any
environmental consultant, and any receiver appointed by any court of competent jurisdiction, shall
have the right, but not the obligation, to enter upon the Property at all reasonable times and on
not less than one (1) Business Day advance notice to Mortgagors to assess any and all aspects of
the environmental condition of the Property and its use, including, but not limited to, conducting
any environmental assessment or audit (the scope of which shall be determined in Mortgagee’s sole
(but reasonable) discretion) and taking samples of soil, groundwater or other water, air, or
building materials, and conducting other invasive testing. Each Mortgagor shall cooperate with and
provide access to Mortgagee and any such Person designated by Mortgagee. Mortgagee agrees that it
shall not exercise its rights under this Section 10.5 more frequently than once per
calendar year, unless Mortgagee reasonably believes that the Property is not in full compliance
with all Environmental Laws.

ARTICLE 11 — WAIVERS

     Section 11.1 Waiver of Counterclaim. Each Mortgagor hereby waives the right to assert
a counterclaim, other than a mandatory or compulsory counterclaim, in any action or proceeding
brought against it by Mortgagee arising out of or in any way connected with this Security
Instrument, the Note, the Loan Agreement, any of the other Loan Documents, or the Obligations.

     Section 11.2 Marshalling and Other Matters. Each Mortgagor hereby waives, to the
extent permitted by law, the benefit of all appraisement, valuation, stay, extension, reinstatement
and redemption laws now or hereafter in force and all rights of marshalling in the event of any
sale hereunder of the Property or any part thereof or any interest therein. Further, each
Mortgagor hereby expressly waives any and all rights of redemption from sale under any order or
decree of foreclosure of this Security Instrument on behalf of such Mortgagor, and on behalf of
each Person acquiring any interest in or title to the Property subsequent to the date of this
Security Instrument and on behalf of all persons to the extent permitted by Legal Requirements.

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     Section 11.3 Waiver of Notice. Mortgagors shall not be entitled to any notices of any
nature whatsoever from Mortgagee except (a) with respect to matters for which this Security
Instrument, the Loan Agreement or any other Loan Document, specifically and expressly provides for
the giving of notice by Mortgagee to Mortgagors, and (b) with respect to matters for which
Mortgagee is required by any Law to give notice, and except as provided above in this Section
11.3, each Mortgagor hereby expressly waives the right to receive any notice from Mortgagee
with respect to any matter for which this Security Instrument does not specifically and expressly
provide for the giving of notice by Mortgagee to Mortgagor.

     Section 11.4 Waiver of Statute of Limitations. Each Mortgagor hereby expressly waives
and releases to the fullest extent permitted by Law, the pleading of any statute of limitations as
a defense to payment or performance of the Obligations.

     Section 11.5 Sole Discretion of Mortgagee. Wherever pursuant to this Security
Instrument (a) Mortgagee exercises any right given to it to approve or disapprove, (b) any
arrangement or term is to be satisfactory to Mortgagee, or (c) any other decision or determination
is to be made by Mortgagee, the decision of Mortgagee to approve or disapprove, all decisions that
arrangements or terms are satisfactory or not satisfactory and all other decisions and
determinations made by Mortgagee, shall be in the sole and absolute discretion of Mortgagee, except
as may be otherwise expressly and specifically provided herein or in any of the other Loan
Documents.

     Section 11.6 Waiver of Trial by Jury. EACH MORTGAGOR HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS SECURITY INSTRUMENT OR
ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). EACH MORTGAGOR CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER.

     Section 11.7 Waiver of Foreclosure Defense. Each Mortgagor hereby waives any defense
such Mortgagor might assert or have by reason of Mortgagee’s failure to make any tenant or lessee
of the Property a party defendant in any foreclosure proceeding or action instituted by Mortgagee.

     Section 11.8 Mortgagors’ Knowledge. EACH MORTGAGOR SPECIFICALLY ACKNOWLEDGES AND
AGREES (a) THAT IT HAS A DUTY TO READ THIS SECURITY INSTRUMENT AND THAT IT IS CHARGED WITH NOTICE
AND KNOWLEDGE OF THE TERMS HEREOF, (b) THAT IT HAS IN FACT READ THIS SECURITY INSTRUMENT AND IS
FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS
SECURITY INSTRUMENT, (c) THAT IT HAS BEEN REPRESENTED BY LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE
NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS SECURITY INSTRUMENT AND HAS RECEIVED THE ADVICE OF
SUCH COUNSEL IN CONNECTION WITH ENTERING INTO THIS SECURITY INSTRUMENT, AND (d) THAT IT RECOGNIZES
THAT CERTAIN OF THE TERMS OF THIS SECURITY INSTRUMENT PROVIDE FOR (i) CERTAIN WAIVERS AND FOR (ii)
THE ASSUMPTION BY ONE PARTY OF, AND/OR

25

 

RELEASE OF THE OTHER PARTY FROM, CERTAIN LIABILITIES THAT SUCH PARTY MIGHT OTHERWISE BE
RESPONSIBLE FOR UNDER APPLICABLE LAWS. EACH MORTGAGOR FURTHER AGREES AND COVENANTS THAT IT WILL
NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY SUCH PROVISIONS OF THIS SECURITY INSTRUMENT ON
THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT SUCH PROVISIONS ARE
NOT “CONSPICUOUS.”

     Section 11.9 Usury Savings. It is the intent of Mortgagee and Mortgagors in the
execution of the Loan Agreement and the other Loan Documents and any other written or oral
agreement by Mortgagors in favor of Mortgagee to contract in strict compliance with applicable
usury Laws. In furtherance thereof, Mortgagee and Mortgagors stipulate and agree that none of the
terms and provisions contained in the Loan Agreement and the other Loan Documents, or in any other
written or oral agreement by Mortgagors, any other Borrower or any other party to any of the other
Loan Documents in favor of Mortgagee, shall ever be construed to create a contract to pay for the
use, forbearance or detention of money, or interest at a rate in excess of the maximum interest
rate permitted to be charged by applicable Laws; that neither Mortgagors nor any guarantors,
endorsers or other Persons now or hereafter becoming liable for payment of the Obligations are
agreeing to pay at a rate in excess of the maximum interest that may be lawfully charged under
applicable Laws; and that the provisions of this subsection shall control over all other provisions
of the Loan Agreement and the other Loan Documents or any other oral or written agreements which
may be in apparent conflict herewith. Mortgagee expressly disavows any intention to charge or
collect excessive unearned interest or finance charges in the event the maturity of the Loan or the
remaining Obligations are accelerated. If the maturity of the Loan or the remaining Obligations
shall be accelerated for any reason or if the principal of the Loan or the remaining Obligations
are paid prior to the end of the term of the Loan or the Obligations, as applicable, and as a
result thereof the interest received for the actual period of existence of the Loan or the
Obligations, as applicable, exceeds the applicable maximum lawful rate, Mortgagee shall, at
Mortgagee’s option, either refund to                     Borrowers the amount of such excess or credit the
amount of such excess against the principal balance of the Obligations then outstanding and thereby
shall render inapplicable any and all penalties of any kind provided by applicable Laws as a result
of such excess interest. If Mortgagee shall contract for, charge or receive any amount or amounts
and/or any other thing of value which are determined to constitute interest which would increase
the effective interest rate on the Loan or the Obligations to a rate in excess of that permitted to
be charged by applicable Laws, an amount equal to interest in excess of the lawful rate shall, upon
such determination, at the option of Mortgagee, be either immediately returned to
                    Borrowers or credited against the Obligations then outstanding, in which event any and
all penalties of any kind under applicable Laws as a result of such excess interest shall be
inapplicable.

ARTICLE 12 — EXCULPATION

     Section 12.1 Exculpation. Notwithstanding anything to the contrary contained in this
Security Instrument, the liability of any party to this Security Instrument to pay the Obligations
and for the performance of the other agreements, covenants and obligations contained herein and in
the Note, the Loan Agreement and the other Loan Documents shall be limited as set forth in
Section 12.9 of the Loan Agreement.

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ARTICLE 13 — SUBMISSION TO JURISDICTION

     Section 13.1 Submission to Jurisdiction. With respect to any claim or action arising
hereunder or under the Note or the other Loan Documents, each of the Mortgagors (a) irrevocably
submits to the nonexclusive jurisdiction of the courts of the State of New York located in the
Borough of Manhattan in New York, New York and the United States District Court located in the
Borough of Manhattan in New York, New York, and appellate courts from any thereof, and (b)
irrevocably waives any objection which it may have at any time to the laying of venue of any suit,
action or proceeding arising out of or relating to this Security Instrument brought in any such
court, irrevocably waives any claim that any such suit, action or proceeding brought in any such
court has been brought in an inconvenient forum. Nothing in this Security Instrument will be
deemed to preclude Mortgagee from bringing an action or proceeding with respect hereto in any other
jurisdiction.

ARTICLE 14 — APPLICABLE LAW

     Section 14.1 CHOICE OF LAW. THIS SECURITY INSTRUMENT SHALL BE DEEMED TO BE A CONTRACT
ENTERED INTO PURSUANT TO THE LAWS OF THE STATE OF NEW YORK AND SHALL IN ALL RESPECTS BE GOVERNED,
CONSTRUED, APPLIED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK;
PROVIDED, HOWEVER, THAT WITH RESPECT TO THE CREATION, PERFECTION, PRIORITY AND
ENFORCEMENT OF THE LIEN OF THIS SECURITY INSTRUMENT, AND THE DETERMINATION OF DEFICIENCY JUDGMENTS,
AND THE TRANSFER OF ANY INTEREST IN REAL PROPERTY, THE LAWS OF THE STATE WHERE THE LAND IS LOCATED
SHALL APPLY.

     Section 14.2 Provisions Subject to Applicable Law. All rights, powers and remedies
provided in this Security Instrument may be exercised only to the extent that the exercise thereof
does not violate any applicable provisions of Law and are intended to be limited to the extent
necessary so that they will not render this Security Instrument invalid, unenforceable or not
entitled to be recorded, registered or filed under the provisions of any Legal Requirements.

ARTICLE 15 — DEFINITIONS

     Section 15.1 General Definitions. Unless the context clearly indicates a contrary
intent or unless otherwise specifically provided herein, words used in this Security Instrument may
be used interchangeably in singular or plural form and the word “Mortgagor” shall mean “each
Mortgagor and any subsequent owner or owners of the Property or any part thereof or any interest
therein,” the word “Mortgagee” shall mean “Mortgagee and any subsequent holder of the Note,” the
word “Note” shall mean “the Note and any other evidence of indebtedness secured by this Security
Instrument,” the word “Property” shall include any portion of the Property and any interest of any
Mortgagor therein, and the phrases “legal fees”, “attorneys’ fees” and “counsel fees” shall include
any and all attorneys’, paralegal and law clerk fees and disbursements, including, but not limited
to, fees and disbursements at the pre-trial, trial and appellate levels incurred or paid by
Mortgagee in protecting its interest in the Property, the Leases and the Rents and enforcing its
rights hereunder.

     Section 15.2 Headings, etc. The headings and captions of various Articles and
Sections of this Security Instrument are for convenience of reference only and are not to be
construed as defining or limiting, in any way, the scope or intent of the provisions hereof.

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ARTICLE 16 — MISCELLANEOUS PROVISIONS

     Section 16.1 No Oral Change. This Security Instrument and any provisions hereof may
not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act
or failure to act on the part of Mortgagors or Mortgagee, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment, waiver, extension,
change, discharge or termination is sought.

     Section 16.2 Intentionally Deleted.

     Section 16.3 Liability. If Mortgagors consists of more than one Person, the
obligations and liabilities of each such Person hereunder shall be joint and several. This
Security Instrument shall be binding upon and inure to the benefit of Mortgagors and Mortgagee and
their respective successors and assigns forever.

     Section 16.4 Inapplicable Provisions. If any term, covenant or condition of this
Security Instrument or any other Loan Document is held to be invalid, illegal or unenforceable in
any respect, the Note and this Security Instrument or the other Loan Documents, as the case may be,
shall be construed without such provision.

     Section 16.5 Duplicate Originals; Counterparts. This Security Instrument may be
executed in any number of duplicate originals and each duplicate original shall be deemed to be an
original. This Security Instrument may be executed in several counterparts, each of which
counterparts shall be deemed an original instrument and all of which together shall constitute a
single Security Instrument. The failure of any party hereto to execute this Security Instrument,
or any counterpart hereof, shall not relieve the other signatories from their obligations
hereunder.

     Section 16.6 Number and Gender. Whenever the context may require, any pronouns used
herein shall include the corresponding masculine, feminine or neuter forms, and the singular form
of nouns and pronouns shall include the plural and vice versa.

     Section 16.7 Notice. All notices required or permitted under this Security Instrument
shall be given and be effective in accordance with Section 12.2 of the Loan Agreement.

ARTICLE 17 — CROSS-COLLATERALIZATION

     Section 17.1 Cross-Collateralization. Mortgagors acknowledge that the Obligations are
secured by this Security Instrument together with those additional mortgages, deeds of trust and
deeds to secure debt (collectively, the “Other Security Instruments”) given by the other Borrowers
and/or certain Affiliates of Mortgagors to Mortgagee, together with their respective Assignments of
Leases and other Loan Documents securing or evidencing the Obligations, and encumbering the other
Collateral Properties, all as more specifically set forth in the Loan Agreement. Upon the
occurrence and during the continuance of an Event of Default, Mortgagee shall have the right to
institute a proceeding or proceedings for the total or partial foreclosure of this Security
Instrument and any or all of the Other Security Instruments whether by court action, power of sale
or otherwise, under any applicable provision of Law, for all of the Obligations or the portion of
the Obligations allocated to the Property in the Loan Agreement, and the lien and the security
interest created by the Other Security Instruments shall continue in full force and effect without
loss of priority as a lien and security interest securing the payment of that portion of the
Obligations then due and payable but still outstanding. Mortgagors acknowledge and

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agree that the Property and the other Collateral Properties are located in one or more States
and counties, and therefore Mortgagee shall be permitted to enforce payment of the Obligations and
the performance of any term, covenant or condition of the Note, this Security Instrument, the Loan
Documents or the Other Security Instruments and exercise any and all rights and remedies under the
Note, this Security Instrument, the other Loan Documents or the Other Security Instruments, or as
provided by Law or at equity, by one or more proceedings, whether contemporaneous, consecutive or
both, to be determined by Mortgagee, in its sole discretion, in any one or more of the States or
counties in which the Property or any other Collateral Property is located. Neither the acceptance
of this Security Instrument, the other Loan Documents or the Other Security Instruments nor the
enforcement thereof in any one State or county, whether by court action, foreclosure, power of sale
or otherwise, shall prejudice or in any way limit or preclude enforcement by court action,
foreclosure, power of sale or otherwise, of the Note, this Security Instrument, the other Loan
Documents, or any Other Security Instruments through one or more additional proceedings in that
State or county or in any other State or county. Any and all sums received by Mortgagee under the
Note, this Security Instrument, and the other Loan Documents shall be applied to the Obligations in
such order and priority as Mortgagee shall determine, in its sole discretion, without regard to the
Allocated Loan Amount for the Property or any other Collateral Property or the appraised value of
the Property or any other Collateral Property.

ARTICLE 18 — SECONDARY MARKET

     Section 18.1 Transfer of Loan. Subject to the provisions of Article 14 of the Loan
Agreement, Mortgagee may, at any time, (a) sell, transfer or assign the Note, this Security
Instrument and the Other Security Instruments, and any or all servicing rights with respect
thereto, or (b) grant participations therein (“Participations”), or (c) issue mortgage pass-through
certificates or other securities evidencing a beneficial interest in a rated or unrated public
offering or private placements (the “Securities”), or (d) enter into any other Secondary Market
Transaction contemplated in Article XIV of the Loan Agreement, which is incorporated herein by
reference. In addition to its other right under said Article XIV of the Loan Agreement, Mortgagee
may forward to each purchaser, transferee, assignee, servicer, participant or investor in such
Participations or Securities, (collectively, an “Investor”) or any Rating Agency rating such
Securities, each prospective Investor, and any organization maintaining databases on the
underwriting and performance of commercial mortgage loans, all documents and information which
Mortgagee now has or may hereafter acquire relating to the Loan and to the Mortgagors and the other
Loan Parties, any Guarantor and the Property, whether furnished by the Mortgagors, any Guarantor or
otherwise, as Mortgagee determines necessary or desirable. Mortgagors irrevocably waive any and
all rights they may have under Laws to prohibit such disclosure, including, but not limited to any
right of privacy.

     Section 18.2 Cooperation. Mortgagors and any Guarantor agree to cooperate with
Mortgagee in connection with any transfer made or any Securities created pursuant to this
Article 18, including, without limitation, complying with all of the terms and conditions
of Article XIV of the Loan Agreement.

     Section 18.3 Reserves/Escrows. If Securities are issued in connection with the Loan,
all funds held by Mortgagee in escrow or pursuant to reserves in accordance with this Security
Instrument or the Other Security Instruments shall be deposited in eligible accounts at eligible
institutions as then defined and required by the Rating Agencies.

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ARTICLE 19 — [GROUND LEASE PROVISIONS]

     Section 19.1 No Merger of Fee and Leasehold Estates; Releases. So long as any portion
of the Obligations shall remain unpaid, unless Mortgagee shall otherwise consent, the fee title to
the Land, the Leasehold Estate created by the Ground Lease and the subleasehold estate created by
the Operating Lease shall not merge but shall always be kept separate and distinct, notwithstanding
the union of such estates in Mortgagors, Owner, Ground Lessee or in any other Person by purchase,
operation of law or otherwise. Mortgagee reserves the right, at any time, to release portions of
the Property, including, but not limited to, the Leasehold Estate and the subleasehold estate
created by the Operating Lease, with or without consideration, at Mortgagee’s election, without
waiving or affecting any of its rights hereunder or under the Note or the other Loan Documents and
any such release shall not affect Mortgagee’s rights in connection with the portion of the Property
not so released.

     Section 19.2 Mortgagor’s Acquisition of Fee Estate. So long as any portion of the
Obligations remains unpaid, the lien created by this Security Instrument shall include and be
deemed to be spread to cover Owner’s fee simple title to the Land and other portions of the
Property in which Owner holds an interest, and said fee simple title shall be deemed to be included
in the Property. Owner agrees, at its sole cost and expense, including without limitation,
Mortgagee’s reasonable attorneys’ fees, to (i) execute any and all documents or instruments
necessary to subject its fee simple title to the Land to the lien of this Security Instrument; and
(ii) provide a title insurance policy which shall insure that the lien of this Security Instrument
is a first lien on Owner’s fee simple title to the Land.

     Section 19.3 Bankruptcy.

          (a) Subject to the terms of the Loan Agreement, Ground Lessee shall not, in any event,
including the bankruptcy, reorganization or insolvency of Ground Lessee or Owner, (i) surrender the
Leasehold Estate, or any portion thereof, nor terminate, cancel or acquiesce in the rejection of
the Ground Lease; or (ii) modify, change, supplement, alter or amend the Ground Lease in any
respect, either orally or in writing. Subject to the terms of the Loan Agreement, Ground Lessee
does hereby expressly release, assign, relinquish and surrender unto Mortgagee all of Ground
Lessee’s right, power and authority to terminate, cancel, acquiesce in the rejection of, modify,
change, supplement, alter or amend the Ground Lease in any respect, either orally or in writing, at
any time, including in the event of the bankruptcy, reorganization or insolvency of Ground Lessee
or Owner, and any attempt on the part of Ground Lessee to exercise any such right without the
consent of Mortgagee shall be null and void. Notwithstanding the foregoing, in the event of a
threatened termination of the Ground Lease due to the bankruptcy, reorganization or insolvency of
Ground Lessee or Owner, Ground Lessee shall, at Mortgagee’s election, absolutely assign to
Mortgagee, in lieu of such termination, all of Ground Lessee’s right, title and interest in and to
the Ground Lease.

          (b) If the Ground Lease is rejected by Owner, as debtor in possession, or by a trustee for
Owner, pursuant to Section 365 of the Bankruptcy Code, Ground Lessee shall not exercise its right
to elect under Section 365(h)(1) of the Bankruptcy Code to terminate or treat the Ground Lease as
terminated. Any such election made shall be null and void. In any event, Ground Lessee hereby
waives, for the benefit of Mortgagee, its successors and assigns only, and not enforceable by
anyone else, the provisions of Section 365 of the Bankruptcy Code, or of any statute or rule of law
now or hereafter in effect which gives or purports to give Ground Lessee any right of election to
terminate the Ground Lease, to acquiesce in the termination of the

30

 

Ground Lease or to surrender possession of the Property in the event of the bankruptcy,
reorganization or insolvency of Owner or any other party.

          (c) If Owner, as debtor in possession, or by a trustee for Owner, attempts to transfer its
interest in the Land and the Improvements free and clear of the Ground Lease pursuant to Section
363 of the Bankruptcy Code, Ground Lessee shall not consent, acquiesce or fail to object to such
attempted transfer. Any such consent, acquiescence or failure to object made shall be null and
void. In any event, Ground Lessee hereby waives, for the benefit of Mortgagee, its successors and
assigns only, and not enforceable by anyone else, the provisions of Section 363 of the Bankruptcy
Code, or of any statute or rule of law now or hereafter in effect which gives or purports to give
Ground Lessee any right to consent to or acquiesce in the transfer of Owner’s interest in the Land
and the Improvements free and clear of the Ground Lease, to acquiesce in the termination of the
Ground Lease or to surrender possession of the Property in the event of the bankruptcy,
reorganization or insolvency of Owner or any other party.

ARTICLE 20 — [OPERATING LEASE PROVISIONS]

     Section 20.1 No Merger of Leasehold and Sub-Leasehold Estates; Release. So long as
any portion of the Obligations shall remain unpaid, unless Mortgagee shall otherwise consent, the
Leasehold Estate and the subleasehold estate therein created pursuant to the provision of the
Operating Lease shall not merge but shall always be kept separate and distinct, notwithstanding the
union of such estates in Operating Lessee, Ground Lessee or Owner, or in any other Person by
purchase, operation of law or otherwise. Mortgagee reserves the right, at any time, to release
portions of the Property, including, but not limited to, the subleasehold estate created by the
Operating Lease, with or without consideration, at Mortgagee’s election, without waiving or
affecting any of its rights hereunder or under the Note or any of the other Loan Documents and any
such release shall not affect Mortgagee’s rights in connection with the portion of the Property not
so released.

     Section 20.2 Subordination/Purchase
Rights. (a) Any option to purchase,
right of first refusal to purchase, right of first refusal to lease additional space at the
Property or any interest therein, right to bid at any sale of the Property by foreclosure, power of
sale, or otherwise, or any similar right of Operating Lessee, whether pursuant to the Operating
Lease or otherwise (collectively, the “Purchase Rights”), are and shall at all times continue to be
subject and subordinate in all respects to the terms, covenants and provisions of this Security
Instrument and to the lien hereof, including without limitation, all renewals, increases,
modifications, spreaders, consolidations, replacements and extensions thereof and to all sums
secured thereby and advances made thereunder with the same force and effect as if the Security
Instrument had been executed, delivered and recorded prior to the execution and delivery of the
Operating Lease or such other document containing any Purchase Right. Operating Lessee hereby
acknowledges and agrees that its right to receive any payments pursuant to the terms of the
Operating Lease is subordinate to the payment of the interest, principal and other sums due
pursuant to the Loan Agreement, the Note and the other Loan Documents.

          (b) Operating Lessee represents and warrants that (i) Operating Lessee is the sole owner and
holder of all of the Purchase Rights; (ii) Operating Lessee has not granted or made any assignment,
transfer, conveyance or other disposition of the Purchase Rights; (iii) Operating Lessee has not
granted or created any lien or encumbrance of any Purchase Rights; and (iv) Operating Lessee has
not exercised any Purchase Rights.

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          (c) Operating Lessee hereby agrees that so long as the Loan is outstanding, Operating Lessee
shall not exercise any of the Purchase Rights or assign, transfer or convey all or any of the
Purchase Rights.

          (d) Mortgagors agree to notify Mortgagee in writing of (i) the proposed exercise of any of the
Purchase Rights not less than thirty (30) days prior to the date of the exercise of any of the
Purchase Rights, (ii) any notice given to any Mortgagor with respect to exercise of any of the
Purchase Rights, concurrently with the giving of such notice to the applicable Mortgagor, and shall
include a copy of any notice given to such Mortgagor with respect to such exercise and (iii) any
proposed assignment, transfer or conveyance of all or any of the Purchase Rights, or agreement to
do so, in the case of Operating Lessee, not less than thirty (30) days prior to the date of any
such assignment, transfer or conveyance, and in the case of Ground Lessee, concurrently with Ground
Lessee’s receipt of any notice of such proposed assignment, transfer or conveyance.

     Section 20.3 Mortgagors’ Fee Simple Estate. The lien of this Security Instrument
shall encumber and be deemed to be spread to cover the fee simple title to the Land, and said fee
simple title shall be deemed to be included in the Property. Mortgagors agree, at their sole cost
and expense, including without limitation, Mortgagee’s reasonable attorney’s fees, to (i) execute
any and all documents or instruments necessary to further evidence or perfect the fact that the fee
simple estate in the Property is subject to the lien of this Security Instrument; and (ii) provide
a title insurance policy which shall insure that the lien of this Security Instrument is a first
lien on Mortgagors’ fee simple title to the Property.

     Section 20.4 Consent of Ground Lessee. Notwithstanding anything to the contrary set
forth in the Operating Lease, including, without limitation, Article 11 thereof, Ground
Lessee hereby consents to the granting by Operating Lessee to Mortgagee, pursuant to this Security
Instrument, of a security interest in the Operating Lease and the subleasehold estate created
thereby in the Land, and all of Operating Lessee’s right, title and interest in and to the
Property.

     Section 20.5 Consent and Waiver of Operating Lessee. Notwithstanding anything to the
contrary set forth in the Operating Lease, including, without limitation, Article 34
thereof, Operating Lessee hereby consents to the granting by Ground Lessee to Mortgagee, pursuant
to this Security Instrument, of a security interest in the Ground Lease and the Leasehold Estate
created thereby, and all of Ground Lessee’s right, title and interest in and to the Property, and
Operating Lessee hereby acknowledges and agrees that the provisions set forth in Section
34.1 of the Operating Lease with respect to the granting of encumbrances by Ground Lessee shall
not be effective as to this Security Instrument.

     Section 20.6 Bankruptcy.

          (a) Subject to the terms of the Loan Agreement, Operating Lessee shall not, in any event,
including the bankruptcy, reorganization or insolvency of Operating Lessee, Ground Lessee or Owner,
(i) surrender the subleasehold estate in the Land created by the Operating Lease, or any portion
thereof, nor terminate, cancel or acquiesce in the rejection of the Operating Lease; or (ii)
modify, change, supplement, alter or amend the Operating Lease in any respect, either orally or in
writing. Subject to the terms of the Loan Agreement, Operating Lessee does hereby expressly
release, assign, relinquish and surrender unto Mortgagee all of Operating Lessee’s right, power and
authority to terminate, cancel, acquiesce in the rejection of, modify, change, supplement, alter or
amend the Operating Lease in any respect, either orally or in

32

 

writing, at any time, including in the event of the bankruptcy, reorganization or insolvency
of Operating Lessee, Ground Lessee or Owner, and any attempt on the part of Operating Lessee to
exercise any such right without the consent of Mortgagee shall be null and void. Notwithstanding
the foregoing, in the event of a threatened termination of the Operating Lease due to the
bankruptcy, reorganization or insolvency of Ground Lessee or Owner, Operating Lessee shall, at
Mortgagee’s election, absolutely assign to Mortgagee, in lieu of such termination, all of Operating
Lessee’s right, title and interest in and to the Operating Lease.

          (b) If the Operating Lease is rejected by Ground Lessee or Owner, as debtor in possession, or
by a trustee for Ground Lessee or Owner, pursuant to Section 365 of the Bankruptcy Code, Operating
Lessee shall not exercise its right to elect under Section 365(h)(1) of the Bankruptcy Code to
terminate or treat the Operating Lease as terminated. Any such election made shall be null and
void. In any event, Operating Lessee hereby waives, for the benefit of Mortgagee, its successors
and assigns only, and not enforceable by anyone else, the provisions of Section 365 of the
Bankruptcy Code, or of any statute or rule of law now or hereafter in effect which gives or
purports to give Operating Lessee any right of election to terminate the Operating Lease, to
acquiesce in the termination of the Operating Lease or to surrender possession of the Property in
the event of the bankruptcy, reorganization or insolvency of Ground Lessee, Owner or any other
party.

          (c) If Ground Lessee or Owner, as debtor in possession, or by a trustee for Ground Lessee or
Owner, attempts to transfer its interest in the Land and the Improvements free and clear of the
Operating Lease pursuant to Section 363 of the Bankruptcy Code, Operating Lessee shall not consent,
acquiesce or fail to object to such attempted transfer. Any such consent, acquiescence or failure
to object made shall be null and void. In any event, Operating Lessee hereby waives, for the
benefit of Mortgagee, its successors and assigns only, and not enforceable by anyone else, the
provisions of Section 363 of the Bankruptcy Code, or of any statute or rule of law now or hereafter
in effect which gives or purports to give Operating Lessee any right to consent to or acquiesce in
the transfer of Owner’s or Ground Lessee’s interest in the Land and the Improvements free and clear
of the Operating Lease, to acquiesce in the termination of the Operating Lease or to surrender
possession of the Property in the event of the bankruptcy, reorganization or insolvency of Ground
Lessee, Owner or any other party.

ARTICLE 21 — [STATE SPECIFIC PROVISIONS]

[NO FURTHER TEXT ON THIS PAGE]

33

 

     IN WITNESS WHEREOF, this Security Instrument has been executed by Mortgagors as of the day and
year first above written.

         
                
                
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ACKNOWLEDGMENTS

STATE OF         
            

COUNTY OF         
            

     The foregoing instrument was acknowledged
before me on the       day of       
              ,
20      by        
               
               
   , the            
               
               of
               
               
          , a(n)     
                 
                 
  , the              
        of         
               
               
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        , on behalf of said     
                , and who   
    is known to me, OR          
            has produced    
                  as identification.

	 	 	 	 	 	 	 

	[SEAL]
	 	 	 	 	 	 
	 

	 	 	 	 

Notary Public
	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	MY COMMISSION EXPIRES:     
                 
               

STATE OF       
              

COUNTY OF       
              

     The foregoing instrument was
acknowledged before me on the       day of       
              ,
20___ by               
                  
        , the          
                 
               of
                  
                  
    , a(n)              
                  
         , the         
            
of                   
                  
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      , on behalf of said           
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and who       is known to me, OR       has produced   
                   as identification.

	 	 	 	 	 	 	 

	[SEAL]
	 	 	 	 	 	 
	 

	 	 	 	 

Notary Public
	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	MY COMMISSION EXPIRES:     
                
                

 

 

STATE OF      
               

COUNTY OF      
               

     The foregoing instrument was acknowledged
before me on the ___day of              
       ,
20___ by                 
                   
     , the              
                   
        
of                   
                   
   , a(n)                
                   
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the                   
   of                 
                   
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  , and who       is known to me, OR       has
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        as identification.

	 	 	 	 	 	 	 

	[SEAL]
	 	 	 	 	 	 
	 

	 	 	 	 

Notary Public
	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	MY COMMISSION EXPIRES:     
                
                

 

 

EXHIBIT A

(DESCRIPTION OF LAND)exv10w33w5

Exhibit 10.33.5

GUARANTY

          THIS GUARANTY (this “Guaranty”), dated as of May 3, 2010, is made by FELCOR LODGING
LIMITED PARTNERSHIP, a Delaware limited partnership, having its principal place of business at c/o
FelCor Lodging Trust Incorporated, 545 E. John Carpenter Freeway, Suite 1300, Irving, Texas 75062
(“Guarantor”), for the benefit of FORTRESS CREDIT CORP., a Delaware corporation, having its
principal place of business at c/o Fortress Investment Group LLC, 1345 Avenue of the Americas,
46th Floor, New York, New York 10105, for benefit of the Lenders (as defined herein)
from time to time parties to the Loan Agreement (defined below) (collectively with its successors
and assigns, “Administrative Agent”). Capitalized terms used but not defined herein shall
have the meaning set forth in the Loan Agreement.

RECITALS

     A. FelCor/CMB Buckhead Hotel, L.L.C., FelCor/CMB Marlborough Hotel, L.L.C., FelCor/CMB Orsouth
Holdings, L.P., FelCor/CMB Corpus Holdings, L.P., FelCor/CMB SSF Holdings, L.P., FelCor S-4 Hotels
(SPE), L.L.C., DJONT/CMB Buckhead Leasing, L.L.C., DJONT/CMB FCOAM, L.L.C., DJONT/CMB Corpus
Leasing, L.L.C., DJONT/CMB Orsouth Leasing, L.L.C., DJONT/CMB SSF Leasing, L.L.C., FelCor S-4
Leasing (SPE), L.L.C., and FCH/SH Leasing II, L.L.C. (each a “Borrower,” and collectively,
“Borrowers”), Administrative Agent, in its capacity as administrative agent, Administrative
Agent, in its capacity as initial lender (“Initial Lender”), and certain other Persons,
collectively, as lenders (each a “Lender” and, collectively, the “Lenders”), have
entered into that certain Credit Agreement dated as of the date hereof (as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time, the “Loan
Agreement”), pursuant to which Administrative Agent and the Lenders have agreed to make a loan
(the “Loan”) to the Borrowers in the original principal sum of TWO HUNDRED TWELVE MILLION
and 00/100 Dollars ($212,000,000.00).

     B. Borrowers, Administrative Agent, Initial Lender and Guarantor are parties to a certain
Letter Agreement, dated as of the date hereof, which, among other things, sets forth certain
guaranty obligations of Guarantor (as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time, the “Letter Agreement”).

     C. Guarantor, directly or indirectly, owns 100% of Borrowers (other than FCH/SH Leasing II,
L.L.C., of which Guarantor owns, directly or indirectly, 50% of the beneficial interest, and 100%
of the voting interest), and Guarantor will to benefit from the Loan, and desires that
Administrative Agent and Initial Lender enter into the Loan Agreement with Borrowers.

     D. Administrative Agent and Initial Lender are not willing to make the Loan to Borrowers
unless Guarantor unconditionally guarantees payment and performance to Lender of the Guaranteed
Obligations (as hereinafter defined).

          NOW, THEREFORE, as an inducement to Administrative Agent and Initial Lender to make the Loan
to Borrowers, and for other good and valuable consideration, the

1

 

receipt and legal sufficiency of which are hereby acknowledged, the parties do hereby agree as
follows:

ARTICLE I — NATURE AND SCOPE OF GUARANTY

     Section 1.1 Guaranty of Obligations. Guarantor hereby irrevocably and unconditionally
guarantees to Administrative Agent the payment and performance of the Guaranteed Obligations as and
when the same shall be due and payable. Guarantor hereby irrevocably and unconditionally covenants
and agrees that it is liable for the Guaranteed Obligations as a primary obligor.

     Section 1.2 Definition of Guaranteed Obligations. As used herein, the term
“Guaranteed Obligations” means (i) Borrowers’ liability under Section 12.9(b) of the Loan
Agreement, (ii) Borrowers’ liability under the Letter Agreement to pay the Franchise-Related
Guaranteed Amount (as defined in the Letter Agreement), (iii) Borrowers’ liability under the Loan
Agreement to pay the Incentive Management Fee Tie-In Amount, (iv) Borrowers’ liability under the
Loan Agreement to pay the Brand Standards Renovation Payment Amount, (v) Borrowers’ liability under
the Loan Agreement to pay the PIP Payment Amount, and (vi) upon the occurrence of a Full Recourse
Event, Borrowers’ liability under Section 12.9(c) to pay the full amount of the Obligations.

     Section 1.3 Nature of Guaranty. This Guaranty is an irrevocable, absolute, continuing
guaranty of payment and performance and not a guaranty of collection. This Guaranty may not be
revoked by Guarantor and shall continue to be effective with respect to any Guaranteed Obligations
arising or created after any attempted revocation by Guarantor and after (if Guarantor is a natural
person) Guarantor’s death (in which event this Guaranty shall be binding upon Guarantor’s estate,
legal representatives and heirs).

     Section 1.4 Payment by Guarantor. Guarantor shall, immediately upon demand by
Administrative Agent, pay the amount due on the Guaranteed Obligations to Administrative Agent at
Administrative Agent’s address as set forth herein or as otherwise instructed by Administrative
Agent. Such demand(s) may be made at any time coincident with or after the time for payment of all
or any part of the Guaranteed Obligations with respect to the same or different Guaranteed
Obligations.

     Section 1.5 No Duty to Pursue Others. Administrative Agent shall not be required (and
Guarantor hereby waives any rights to require Administrative Agent), in order to enforce the
obligations of Guarantor hereunder, first (i) to institute suit or otherwise exhaust its remedies
against any Borrower or any other Persons liable on the Loan or the Guaranteed Obligations, or
against any other Person, (ii) to enforce Administrative Agent’s rights against any collateral
given to secure the Loan, (iii) to enforce Administrative Agent’s rights against any other
guarantors of the Guaranteed Obligations, (iv) to join Borrowers or any other Persons liable on the
Guaranteed Obligations in any action seeking to enforce this Guaranty, (v) to exhaust any available
remedies against any collateral given to secure the Loan, or (vi) to resort to any other means of
obtaining payment of the Guaranteed Obligations.

2

 

     Section 1.6 Waivers. Guarantor agrees to the provisions of the Loan Documents and
hereby waives notice of (i) any loans or advances made by Administrative Agent to Borrowers, (ii)
acceptance of this Guaranty, (iii) any amendment, modification, replacement or extension of any
Loan Document, (iv) the execution and delivery by Borrowers and/or Administrative Agent of any
other agreements, promissory notes or other documents arising under the Loan Documents or in
connection with the Collateral Property, (v) any Event of Default, (vi) Administrative Agent’s
transfer, participation, componentization or other disposition of the Guaranteed Obligations, or
any part thereof, (vii) sale or foreclosure (or posting or advertising therefor) of any collateral
for the Guaranteed Obligations, (viii) protest, presentment, intention to accelerate the maturity,
acceleration of the maturity, or proof of non-payment or default by Borrowers, or (ix) any other
action taken or omitted by Administrative Agent and any and all demands and notices of every kind
in connection with this Guaranty, the Loan Documents, and any documents or agreements evidencing,
securing or relating to any of the Guaranteed Obligations and any other obligations hereby
guaranteed.

     Section 1.7 Payment of Expenses. If Guarantor fails to timely perform any provisions
of this Guaranty, Guarantor shall, immediately upon demand by Administrative Agent, pay
Administrative Agent any and all reasonable costs and expenses (including court costs and
reasonable attorneys’ fees and expenses) incurred by Administrative Agent in the enforcement hereof
or the preservation of Administrative Agent’s rights hereunder. The covenant contained in this
Section 1.7 shall survive the payment and performance of the Guaranteed Obligations.

     Section 1.8 Effect of Bankruptcy. If pursuant to any Insolvency Proceeding concerning
any Borrower or Guarantor, Administrative Agent must rescind, restore or return any payment or any
part thereof received by Administrative Agent in satisfaction (in full or in part) of the
Guaranteed Obligations, as set forth herein, any prior release or discharge from the terms of this
Guaranty given to Guarantor by Administrative Agent shall be without effect, and this Guaranty
shall remain in full force and effect. Guarantor acknowledges that Guarantor’s obligations
hereunder shall not be discharged except by Guarantor’s performance of same and then only to the
extent of such performance. In addition, if at any time any payment of principal, interest or any
other amount payable by Borrowers under any Loan Document, is rescinded or must be restored or
returned pursuant to an Insolvency Proceeding concerning any Borrower or otherwise, Guarantor’s
obligations hereunder with respect to such payment shall be fully reinstated as though such payment
has been due but not made.

     Section 1.9 Waiver of Subrogation, Reimbursement and Contribution. Notwithstanding
anything to the contrary contained in this Guaranty, Guarantor hereby unconditionally and
irrevocably waives, releases and abrogates any and all rights it may now or hereafter have under
any agreement, at law or in equity (including, without limitation, any law subrogating Guarantor to
the rights of Administrative Agent), to assert any claim against or seek contribution,
indemnification or any other form of reimbursement from any Borrower or any other party liable for
payment of any or all of the Guaranteed Obligations for any payment made by Guarantor under or in
connection with this Guaranty or otherwise until the Obligations are paid in full. The provisions
of this paragraph shall survive the termination of this Guaranty, and any satisfaction and
discharge of any Borrower by virtue of any payment, court order or any applicable law.

3

 

     Section 1.10 Borrower. The term “Borrower” or “Borrowers” as used
herein shall include any new or successor corporation, association, partnership (general or
limited), limited liability company, joint venture, trust or other individual or organization
formed as a result of any merger, reorganization, sale, transfer, assignment, devise, gift or
bequest of or by Borrower or Borrowers or any interest in Borrower, Borrowers or the Loan.

ARTICLE II — EVENTS AND CIRCUMSTANCES NOT

REDUCING OR DISCHARGING GUARANTOR’S OBLIGATIONS

     Section 2.1 Events and Circumstances Not Reducing or Discharging Guarantor’s
Obligations. Guarantor hereby consents and agrees to each of the following and agrees
that Guarantor’s obligations hereunder shall not be released, diminished, impaired, reduced or
adversely affected in any way by any of the following, and waives any common law, equitable,
statutory or other rights (including, without limitation, rights to notice) which Guarantor might
have in connection with any of the following:

          (a) Modifications, Releases, Etc. Any (i) renewal, extension, increase, reduction,
modification, alteration or rearrangement of all or any part of the Guaranteed Obligations, any
Loan Document, or any other document or agreement between any Borrower and Administrative Agent or
any other parties pertaining to the Guaranteed Obligations (including, without limitation, any
sale, assignment, or negotiation of the Note); (ii) adjustment, indulgence, forbearance or
compromise that might be extended, granted or given by Administrative Agent to any Borrower or
Guarantor; (iii) full or partial release of the liability of Borrowers, Guarantor, or any other
Person, with respect to the Guaranteed Obligations; (iv) taking or accepting of any other security,
collateral or guaranty of payment for all or any part of the Guaranteed Obligations; or (v)
release, surrender, exchange, subordination, deterioration, waste, loss or impairment (including,
without limitation, negligent, willful, unreasonable or unjustifiable impairment) of any
collateral, property or security at any time existing in connection with, or assuring or securing
payment of, all or any part of the Guaranteed Obligations.

          (b) Condition of Borrowers or Guarantor. The existence of an Insolvency Proceeding
concerning any Borrower, Guarantor or any other party liable for the payment of all or part of the
Guaranteed Obligations, or any dissolution of any Borrower or Guarantor or any sale, lease or
transfer of any or all of the assets of any Borrower or Guarantor, or any changes in the
shareholders, partners or members of any Borrower or Guarantor, or any merger, consolidation, or
reorganization of any Borrower or Guarantor into or with any other Person.

          (c) Invalidity, Unenforceability, Offset, Etc. The invalidity, illegality or
unenforceability of all or any part of the Guaranteed Obligations or any Loan Document, or of any
other document or agreement executed in connection with the Guaranteed Obligations for any reason
whatsoever, including, without limitation, the fact that (i) the Guaranteed Obligations or any part
thereof exceeds the amount permitted by law, (ii) the act of creating the Guaranteed Obligations or
any part thereof is ultra vires, (iii) the officers or representatives executing
the Loan Documents or otherwise creating the Guaranteed Obligations acted in excess of their
authority, (iv) the Guaranteed Obligations violate applicable usury laws, (v) any Borrower has

4

 

valid defenses, claims or offsets (whether at law, in equity or by agreement) which render the
Guaranteed Obligations wholly or partially uncollectible from one or more of Borrowers, and whether
such defense, claim, or right of offset arises in connection with the Guaranteed Obligations, the
transactions creating same, or otherwise (including any defense based upon any statute or rule of
law which provides that the obligation of a surety must be neither larger in amount nor in other
respects more burdensome than that of the principal and any defense of the statute of limitations
in any action hereunder or in any action for the collection or performance of any obligations
hereby guaranteed), (vi) the creation, performance or repayment of the Guaranteed Obligations (or
the execution, delivery and performance of any document or instrument representing part of the
Guaranteed Obligations, or executed in connection with the Guaranteed Obligations, or given to
secure the repayment of the Guaranteed Obligations) is illegal, uncollectible or unenforceable,
(vii) any Loan Document has been forged, or is not genuine or authentic, it being agreed that
Guarantor shall remain liable hereunder regardless of whether any Borrower or any other person be
found not liable on the Guaranteed Obligations or any part thereof for any reason, or (viii) any
collateral, security, security interest or lien contemplated or intended to be given, created or
granted as security for the repayment of the Guaranteed Obligations, or any part thereof, shall not
be properly perfected or created, or shall prove to be unenforceable or subordinate to any other
security interest or lien, it being acknowledged and agreed by Guarantor that Guarantor is not
entering into this Guaranty in reliance on, or in contemplation of the benefits of, the validity,
enforceability, collectibility or value of any of the collateral for the Guaranteed Obligations.

          (d) Care and Diligence. The failure of Administrative Agent or any other party to
exercise diligence or reasonable care in the preservation, protection, enforcement, sale or other
handling or treatment of all or any part of any collateral, property or security, including,
without limitation, any neglect, delay, omission, failure or refusal of Administrative Agent (i) to
take or prosecute any action for the collection of any of the Guaranteed Obligations, (ii) to
foreclose, or initiate any action to foreclose, or, once commenced, prosecute to completion any
action to foreclose upon any security therefor, or (iii) to take or prosecute any action in
connection with any instrument or agreement evidencing or securing all or any part of the
Guaranteed Obligations.

          (e) Preference. Any payment by any Borrower to Administrative Agent is held to
constitute a preference under bankruptcy laws or for any reason Administrative Agent is required to
refund or remit any such payment or amount to any Borrower or any other Person.

          (f) Other Actions Taken or Not Taken. Any other action taken or not taken with
respect to the Loan Documents, the Guaranteed Obligations, or the security and collateral therefor,
whether or not such action or inaction prejudices Guarantor or increases the likelihood that
Guarantor will be required to pay the Guaranteed Obligations pursuant to the terms hereof.

ARTICLE III — REPRESENTATIONS AND WARRANTIES

     Section 3.1 Representations and Warranties. To induce Administrative Agent and the
Initial Lender to enter into the Loan Documents and to make the Loan, Guarantor represents and

5

 

warrants to Administrative Agent that: (a) Guarantor will receive a direct or indirect benefit
from the making of the Loan to Borrowers; (b) Guarantor is familiar with, and has independently
reviewed books and records regarding, the financial condition of Borrowers and any and all
collateral intended to be given as security for the payment of the Obligations; (c) after giving
effect to this Guaranty, Guarantor is and will remain solvent; (d) to Guarantor’s knowledge, the
execution, delivery and performance by Guarantor of this Guaranty and the consummation of the
transactions contemplated hereunder do not and will not contravene or conflict with any law,
statute or regulation to which Guarantor is subject, or constitute a default (or which with notice,
or lapse of time, or both, would constitute a default) under, or result in the breach of, any
indenture, mortgage, charge, lien, or any contract or agreement to which Guarantor is a party or
which may be applicable to Guarantor; (e) to Guarantor’s knowledge, no approval, authorization,
order, license or consent of, or registration or filing with, any Governmental Authority or other
person, and no approval, authorization or consent of any other Person is required in connection
with this Guaranty; (f) to Guarantor’s knowledge, there are no actions, suits or proceedings at law
or in equity by or before any Governmental Authority or other agency now pending and served or, to
Guarantor’s knowledge, threatened, involving or concerning Guarantor, and (g) this Guaranty is a
legal, valid and binding obligation of Guarantor, and is enforceable in accordance with its terms,
except as may be limited by principles of equity, bankruptcy, insolvency or other laws of general
application relating to the enforcement of creditors’ rights.

     Section 3.2 Additional Provisions. Without limiting anything set forth in Section
3.1 above, Guarantor hereby represents, warrants, covenants and agrees as follows:

          (a) Guarantor (i) is duly organized and validly existing in good standing under the laws of
the State of Delaware, (ii) is duly qualified to do business in each jurisdiction in which the
nature of its business makes such qualification necessary, (iii) has the requisite power and
authority to carry on its business as now being conducted, and (iv) has the requisite power to
execute and deliver, and perform its obligations under, this Guaranty and any other Loan Document
to which it is a party.

          (b) The execution and delivery by Guarantor of this Guaranty and any other Loan Document to
which it is a party, and Guarantor’s performance of its obligations thereunder (i) have been duly
authorized by all requisite action on the part of Guarantor, (ii) will not violate any provision of
any applicable Legal Requirements, and (iii) will not be in conflict with, result in a breach of,
or constitute (with due notice or lapse of time or both) a default under, or result in the creation
or imposition of any Lien of any nature whatsoever upon any of the property or assets of Guarantor
pursuant to, any indenture or agreement or instrument. This Guaranty and the other Loan Documents
to which Guarantor is a party have been duly executed and delivered by Guarantor.

ARTICLE IV — SUBORDINATION OF CERTAIN INDEBTEDNESS

     Section 4.1 Subordination of All Guarantor Claims. As used herein, the term
“Guarantor Claims” shall mean any and all debts and liabilities of any Borrower owed to
Guarantor, whether now existing or hereafter incurred, including, without limitation, all rights
and claims of Guarantor against any Borrower (arising as a result of subrogation or otherwise) as a
result of Guarantor’s payment of all or any portion of the Guaranteed Obligations. Without

6

 

limiting the provisions of Section 1.9, Guarantor hereby subordinates its rights to
receive any payment from any Borrower on account of any Guarantor Claims to the full and
indefeasible payment of the Obligations payable to Administrative Agent. Following the occurrence
of an Event of Default, Guarantor shall not demand, receive or collect, directly or indirectly,
from any Borrower or any other party, and shall not claim any offset or other reduction of
Guarantor’s obligations hereunder because of, any amount pursuant to or in satisfaction of the
Guarantor Claims until the Obligations are paid in full.

     Section 4.2 Claims in Bankruptcy. In the event of an Insolvency Proceeding involving
Guarantor as debtor, Administrative Agent shall have the right to prove its claim in any such
proceeding so as to establish its rights hereunder and receive directly from the receiver, trustee
or other court custodian dividends and payments which would otherwise be payable pursuant to or in
satisfaction of Guarantor Claims. Guarantor hereby assigns any and all such dividends and payments
to Administrative Agent.

     Section 4.3 Payments Held in Trust. If, notwithstanding anything to the contrary
contained in this Guaranty, Guarantor should receive any funds, payment, claim or distribution
which is prohibited hereunder, Guarantor covenants and agrees to hold in trust for Administrative
Agent an amount equal to the amount of all funds, payments, claims or distributions so received,
and Guarantor acknowledges and agrees that it shall have absolutely no dominion over the amount of
such funds, payments, claims or distributions so received, except to pay them promptly to
Administrative Agent, and Guarantor hereby covenants and agrees promptly to pay the same to
Administrative Agent.

     Section 4.4 Liens Subordinate; Standstill. Guarantor acknowledges and agrees that any
liens, security interests, judgment liens, charges or other encumbrances upon any Borrower’s assets
securing payment of the Guarantor Claims shall be and remain inferior and subordinate to any liens,
security interests, judgment liens, charges or other encumbrances upon such Borrower’s assets
securing payment of the Guaranteed Obligations, regardless of whether such encumbrances in favor of
Guarantor or Administrative Agent presently exist or are hereafter created or attach. Guarantor
shall not (i) exercise or enforce any creditor’s right it may have against any Borrower, or (ii)
foreclose, repossess, sequester or otherwise take steps or institute any action or proceedings
(judicial or otherwise, including, without limitation, the commencement of, or joinder in, any
liquidation, bankruptcy, rearrangement, debtor’s relief or insolvency proceeding) to enforce any
liens, mortgages, deeds of trust, security interests, collateral rights, judgments or other
encumbrances on assets of any Borrower held by Guarantor.

ARTICLE V — MISCELLANEOUS

     Section 5.1 Waiver. No failure to exercise, and no delay in exercising, on the part
of Administrative Agent, any right hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise thereof preclude any other or further exercise thereof or the exercise
of any other right. The rights of Administrative Agent hereunder shall be in addition to all other
rights provided by law. No notice or demand given in any case shall constitute a waiver of the
right to take other action in the same, similar or other instances without such notice or demand.

7

 

     Section 5.2 Notices. All notices, consents, approvals, demands and requests required
or permitted hereunder shall be given in writing and shall be effective for all purposes if hand
delivered or sent by (a) hand delivery, with proof of attempted delivery, (b) certified or
registered United States mail, postage prepaid, (c) expedited prepaid delivery service, either
commercial or United States Postal Service, with proof of attempted delivery, or (d) by telecopier
(with answerback acknowledged) provided that such telecopied notice must also be delivered by one
of the means set forth in (a), (b) or (c) above, addressed to the parties as follows:

If to Administrative Agent:

Fortress Credit Corp.

1345 Avenue of the Americas, 46th Floor

New York, New York 10105

Attention: James K. Noble III

Facsimile No.: (212) 798-6090

with a copy to:

Sidley Austin LLP

787 Seventh Avenue

New York, New York 10019

Attention: Robert L. Golub, Esq.

Facsimile No.: (212) 839-5599

If to Guarantor:

FelCor Lodging Limited Partnership

545 E. John Carpenter Freeway, Suite 1300

Irving, Texas 75062

Attention: General Counsel

Facsimile No.: (972 ) 444-4949

with a copy to:

Akin Gump Strauss Hauer & Feld LLP

1700 Pacific Avenue, Suite 4100

Dallas, Texas 75201

Attention: Robert W. Dockery, Esq.

Facsimile No.: (214) 969-4343

A party receiving a notice which does not comply with the technical requirements for notice under
this Section 5.2 may elect to waive any deficiencies and treat the notice as having been
properly given. A notice shall be deemed to have been given: (a) in the case of hand delivery, at
the time of delivery; (b) in the case of registered or certified mail, when delivered or the first
attempted delivery on a Business Day; (c) in the case of expedited prepaid delivery upon the first
attempted delivery on a Business Day; or (d) in the case of telecopier, upon receipt of

8

 

answerback confirmation, provided that such telecopied notice was also delivered as required in
this Section 5.2.

     Section 5.3 Governing Law; Submission to Jurisdiction; Choice of Forum.

          (a) This Guaranty shall be interpreted and enforced according to the laws of the state of New
York (without giving effect to rules regarding conflict of laws).

          (b) GUARANTOR IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE
UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY
THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER LOAN
DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND GUARANTOR IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING SHALL BE HEARD
AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
IN SUCH FEDERAL COURT. GUARANTOR AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING
SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY
OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS GUARANTY OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT
ANY RIGHT THAT ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT AGAINST ANY BORROWER OR ITS
PROPERTIES OR GUARANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

          (c) GUARANTOR IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT IN ANY
COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION. GUARANTOR HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE
OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     Section 5.4 Severability. Wherever possible, each provision of this Guaranty shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Guaranty 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 Guaranty.

     Section 5.5 Modification; Waiver in Writing. No modification, amendment, extension,
discharge, termination or waiver of any provision of this Guaranty, nor consent to any

9

 

departure by Guarantor 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 Guarantor, shall entitle Guarantor
to any other or future notice or demand in the same, similar or other circumstances.

     Section 5.6 Number and Gender. All references to sections and exhibits are to
sections and exhibits in or to this Guaranty unless otherwise specified. Unless otherwise
specified, the words “hereof,” “herein” and “hereunder” and words of similar import when used in
this Guaranty shall refer to this Guaranty as a whole and not to any particular provision, article,
section or other subdivision of this Guaranty. 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. Whenever the context may require, any pronouns used herein shall include the
corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns
shall include the plural and vice versa.

     Section 5.7 Headings, Etc. The headings and captions of various paragraphs of this
Guaranty are for the convenience of reference only and are not to be construed as defining or
limiting, in any way, the scope or intent of the provisions hereof.

     Section 5.8 Counterparts. This Guaranty may be executed in several counterparts, each
of which counterparts shall be deemed an original instrument and all of which together shall
constitute a single Guaranty. The failure of any party hereto to execute this Guaranty, or any
counterpart hereof, shall not relieve the other signatories from their obligations hereunder.

     Section 5.9 Rights and Remedies. If Guarantor becomes liable for any indebtedness
owing by any Borrower to Administrative Agent, by endorsement or otherwise, other than pursuant to
this Guaranty, such liability shall not be in any manner impaired or affected hereby, and the
rights of Administrative Agent hereunder shall be cumulative of any and all other rights that
Administrative Agent may ever have against Guarantor. The exercise by Administrative Agent of any
right or remedy hereunder or under any other instrument, or at law or in equity, shall not preclude
the concurrent or subsequent exercise of any other right or remedy.

     Section 5.10 Entire Agreement. This Guaranty and the other Loan Documents embody the
final, entire agreement of Guarantor and Administrative Agent with respect to the Guarantor’s
guaranty of the Guaranteed Obligations and supersedes any and all prior commitments, agreements,
representations, and understandings, whether written or oral, relating to the subject matter
hereof. This Guaranty is intended by Guarantor and Administrative Agent as a final and complete
expression of the terms of the Guaranty, and no course of dealing between Guarantor and
Administrative Agent, no course of performance, no trade practices, and no evidence of prior,
contemporaneous or subsequent oral agreements or discussions or other extrinsic evidence of any
nature shall be used to contradict, vary, supplement or modify any term of this Guaranty. There
are no oral agreements between Guarantor and Administrative Agent.

     Section 5.11 Waiver of Right to Trial by Jury. GUARANTOR HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE

10

 

LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). GUARANTOR
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ADMINISTRATIVE AGENT OR ANY LENDER HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ADMINISTRATIVE AGENT OR ANY LENDER WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT ADMINISTRATIVE
AGENT AND THE LENDERS HAVE BEEN INDUCED TO ENTER INTO THE LOAN DOCUMENTS BY, AMONG OTHER THINGS,
THE WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     Section 5.12 Cooperation.

          (a) Guarantor acknowledges that Administrative Agent may engage in one or more Secondary
Market Transactions in accordance with the Loan Agreement. Guarantor shall cooperate with
Administrative Agent in effecting all such Secondary Market Transactions and shall cooperate to
implement the requirements imposed by any Rating Agency involved in any Secondary Market
Transaction. Guarantor shall provide such information and documents Guarantor has in its
possession relating to Guarantor, any Borrower, any Collateral Property and any tenants of the
Improvements as Administrative Agent may reasonably request in connection with such Secondary
Market Transaction. In addition, Guarantor shall make available to Administrative Agent all
information concerning its business and operations that Administrative Agent may reasonably
request. Administrative Agent shall be permitted to share all such information with the investment
banking firms, Rating Agencies, accounting firms, law firms and other third-party advisory firms
and parties involved with the Loan and/or any Secondary Market Transaction. It is understood and
acknowledged that the information provided by Guarantor to Administrative Agent may ultimately be
incorporated into the offering documents for such Secondary Market Transaction, and thus, various
investors may also have access to such information. Administrative Agent and all of the aforesaid
third-party advisors and professional firms shall be entitled to rely on the information supplied
by, or on behalf of, Guarantor in such form as provided. Administrative Agent may publicize the
Loan in connection with any Secondary Market Transaction or its business development.

          (b) Upon any transfer or proposed transfer contemplated above and by Article 14 of the Loan
Agreement, at Administrative Agent’s request, Guarantor shall provide an estoppel certificate to
any investor or any prospective investor in a Secondary Market Transaction, in such form and
substance as Administrative Agent, or such investor or prospective investor, may reasonably
require.

     Section 5.13 Exculpation. Notwithstanding anything to the contrary in this Guaranty,
the only entity or person with any financial or other obligation under this Guaranty, at law or in
equity, is Guarantor, and Administrative Agent and Lenders shall look solely to the assets of
Guarantor and its general partner(s) for the satisfaction of any claim arising under, or in
connection with, this Guaranty, at law or equity. Notwithstanding anything to the contrary
contained in this Guaranty, except for any general partner of Guarantor, no present or future

11

 

Constituent Member (as hereinafter defined) in Guarantor, nor any present or future
shareholder, officer, director, employee, trustee, beneficiary, advisor, member, partner,
principal, participant or agent of or in Guarantor or of or in any person or entity that is or
becomes a Constituent Member in Guarantor, shall have any personal or other liability, directly or
indirectly, under or in connection with this Guaranty. Administrative Agent and Lenders, on behalf
of themselves and their respective successors and assigns, hereby waive any and all such personal
or other liability. The term “Constituent Member”, as used herein, shall mean any direct
partner or member in Guarantor and any Person that, directly or indirectly through one or more
other partnerships, limited liability companies, corporations or other entities, is a partner or
member in Guarantor except for any general partner of Guarantor. Notwithstanding anything to the
contrary contained in this Guaranty, neither the negative capital account of any Constituent Member
in Guarantor nor any obligation of any Constituent Member in Guarantor to restore a negative
capital account or to contribute or loan capital to Guarantor or to any other Constituent Member in
Guarantor shall at any time be deemed to be the property or an asset of Guarantor (or any such
other Constituent Member) and neither Administrative Agent nor Lenders nor any of their respective
successors or assigns shall have any right to collect, enforce or proceed against any Constituent
Member with respect to any such negative capital account or obligation to restore, contribute or
loan.

     Section 5.14 California State-Specific Waiver. In the event of any inconsistencies
between the terms and conditions of this Section 5.14 and the other terms and conditions of
this Guaranty, the terms and conditions of this Section 5.14 shall control and be binding.
Guarantor hereby waives:

     (i) Presentment, demand, protest, notice of protests, notice of dishonor, notice of
intention to accelerate, notice of acceleration and notices of non-payment and notice of
acceptance of this Guaranty;

     (ii) The right, if any, to the benefit of or to direct the application of, any security
held by Administrative Agent, including any Collateral Properties; and all rights of
subrogation, any right to enforce any remedy which Guarantor now has or hereafter may have
against any Borrower and any right to participate in any security now or hereafter held by
Administrative Agent;

     (iii) The right to require Administrative Agent to proceed against any Borrower or to
proceed against any security now or hereafter held by Administrative Agent or to pursue any
other remedy in Administrative Agent’s power;

     (iv) The benefits, if Guarantor is entitled to any benefits, of any single-action
legislation or of any or all anti-deficiency statutes or regulations or judicial
interpretations thereof, including, but not limited to, any protection which may be afforded
Guarantor by California Code of Civil Procedure Sections 580a, 580b, 580d and 726, and any
amendments or modifications thereto. Guarantor understands and agrees that by waiving the
anti-deficiency protections referred to herein, Guarantor can be held liable for a
deficiency judgment following a non-judicial foreclosure sale (including a non-judicial
foreclosure sale of a purchase money obligation) even if the price paid for any Collateral
Property at the non-judicial foreclosure sale is less than the fair value of such Collateral

12

 

Property; and Guarantor further understands and agrees that Guarantor is waiving its
defense that the price paid for any Collateral Property at a judicial foreclosure sale may
not be equal to the fair value of such Collateral Property; and Guarantor further
understands and agrees that by Guarantor waiving its right to a fair value hearing following
the foreclosure sale that Administrative Agent can seek a deficiency against Guarantor up to
the entire amount of the sums guaranteed hereby less the amount paid for any Collateral
Property at the non-judicial or judicial foreclosure sale;

     (v) Any right of subrogation which Guarantor may have under California law to seek
reimbursement from any Borrower of any sums paid by Guarantor to Administrative Agent
pursuant to this Guaranty until the prior full and indefeasible repayment of the Loan in
accordance with the Loan Documents;

     (vi) Any estoppel defense arising out of Section 580d of the California Code of Civil
Procedure;

     (vii) Any defense arising out of absence, impairment or loss of any right of
reimbursement or subrogation or other right or remedy of Guarantor against a Borrower or
against any security resulting from the exercise or election of any remedies by
Administrative Agent, including the exercise of the power of sale under any Mortgage, and
any defense arising by reason of any disability or other defense of a Borrower or by reason
of the cessation, from any cause, of the liability of a Borrower;

     (viii) The benefit of or right to assert any statue of limitations affecting
Guarantor’s liability hereunder or the enforcement thereof, including but not limited to the
provisions of California Code of Civil Procedure Sections 580a and 726 that require that any
action for a deficiency be brought within three (3) months after a foreclosure under any
Mortgage;

     (ix) Any partial payment by any Borrower or other circumstances which operate to toll
any statute of limitations as to any Borrower shall also operate to toll the statute of
limitations as to Guarantor;

     (x) Any defense based upon any change in name, location, composition or structure of
any Borrower, or any change in the type of business conducted by any Borrower, or any other
change in the identity or legal status of any Borrower;

     (xi) Any defense based upon the failure (if any) of Administrative Agent to (i) obtain
a similar guaranty from any other Person, or (ii) file a creditor’s claim in the estate (in
administration, bankruptcy or any other proceeding) of any Person;

     (xii) Any rights which Guarantor may have under California Civil Code Sections 2809,
2810, 2819, 2822(a), 2845, 2849, 2850, 2899 and 3433; and

     (xiii) Without limiting the foregoing, Guarantor waives all rights and defenses that
Guarantor may have because Borrowers’ debt is secured by real property. This means, among
other things:

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	 	(A)	 	Administrative Agent may collect from Guarantor
without first foreclosing on any real or personal property collateral
pledged by any Borrower.
	 
	 	(B)	 	If Administrative Agent forecloses on any real
property collateral pledged by any Borrower:

	 	(1)	 	The amount of the debt may be
reduced only by the price for which that collateral is sold at
the foreclosure sale, even if the collateral is worth more than
the sale price.
	 
	 	(2)	 	Administrative Agent may collect
from Guarantor even if Administrative Agent, by foreclosing on
the real property collateral, has destroyed any right the
Guarantor may have to collect from any Borrower.

     This is an unconditional and irrevocable waiver of any rights and defenses Guarantor may have
because Borrowers’ debt is secured by real property. These rights and defenses include, but are not
limited to, any rights or defenses based upon Section 580a, 580b, 580d, or 726 of the California
Code of Civil Procedure.

     Guarantor waives all rights and defenses arising out of an election of remedies by
Administrative Agent, even though the election of remedies, such as a nonjudicial foreclosure with
respect to security for a guaranteed obligation, has destroyed Guarantor’s rights of subrogation
and reimbursement against any Borrower by the operation of Section 580d of the California Code of
Civil Procedure or otherwise.

[NO FURTHER TEXT ON THIS PAGE]

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          IN WITNESS WHEREOF, the undersigned has executed this Guaranty all as of the day and year
first above written.

	 	 	 	 	 	 	 	 	 	 	 

	 	 	GUARANTOR:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	FELCOR LODGING LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	FelCor Lodging Trust Incorporated, its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Jeffrey D. Symes	 	 
	 

	 	 	 	 	 	Title:
	 	Vice President	 	 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}]]