Document:

Credit Agreement

 Exhibit 10.26 
  

  
 [Published CUSIP Number:             ] 
  
 CREDIT AGREEMENT 
  
 Dated as of August     , 2004 
  
 among 
  
 CAPITAL LODGING
OPERATING PARTNERSHIP, L.P., 
 as Borrower, 
  
 CAPITAL LODGING, 
 as Parent, 

 
 BANK OF AMERICA, N.A., 
 as Administrative Agent 
 and 
 L/C Issuer, 
 and 
  
 WACHOVIA BANK, N.A., 
 as Syndication Agent 
  
 The Other Lenders Party Hereto 
  
 BANC OF AMERICA SECURITIES LLC, 
 and 
 WACHOVIA CAPITAL MARKETS LLC, 
 as 
 Joint Lead Arrangers and Joint Book Managers 
  

  

 TABLE OF CONTENTS 
  

					
	 Section

	  	 	  	Page

		
	 ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	  	1
	 1.01
	  	 Defined Terms
	  	1
	 1.02
	  	 Other Interpretive Provisions
	  	23
	 1.03
	  	 Accounting Terms
	  	23
	 1.04
	  	 Rounding
	  	24
	 1.05
	  	 Times of Day
	  	24
	 1.06
	  	 Letter of Credit Amounts
	  	24
		
	 ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS
	  	24
	 2.01
	  	 Loans
	  	24
	 2.02
	  	 Borrowings, Conversions, and Continuations of Loans
	  	24
	 2.03
	  	 Letters of Credit
	  	26
	 2.04
	  	 Prepayments
	  	33
	 2.05
	  	 Termination or Reduction of Commitments
	  	33
	 2.06
	  	 Repayment of Loans
	  	33
	 2.07
	  	 Interest
	  	34
	 2.08
	  	 Fees
	  	34
	 2.09
	  	 Computation of Interest and Fees
	  	35
	 2.10
	  	 Evidence of Debt
	  	35
	 2.11
	  	 Payments Generally; Administrative Agent’s Clawback
	  	35
	 2.12
	  	 Sharing of Payments by Lenders
	  	37
	 2.13
	  	 Lenders; Increase in Aggregate Commitments
	  	37
		
	 ARTICLE III. TAXES, YIELD PROTECTION, AND ILLEGALITY
	  	38
	 3.01
	  	 Taxes
	  	38
	 3.02
	  	 Illegality
	  	40
	 3.03
	  	 Inability to Determine Rates
	  	40
	 3.04
	  	 Increased Costs; Reserves on Eurodollar Rate Loans
	  	41
	 3.05
	  	 Compensation for Losses
	  	42
	 3.06
	  	 Mitigation Obligations; Replacement of Lenders
	  	42
	 3.07
	  	 Survival
	  	43
		
	 ARTICLE IV. BORROWING BASE; SECURITY
	  	43
	 4.01
	  	 Borrowing Base
	  	43
	 4.02
	  	 Substitution of Borrowing Base Properties and Admission of Properties into the Borrowing Base
	  	44
	 4.03
	  	 Liens on Borrowing Base Properties
	  	45
	 4.04
	  	 Appraisals
	  	46
	 4.05
	  	 Releases of Collateral
	  	46
	 4.06
	  	 Guaranty
	  	46
		
	 ARTICLE V. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	  	47
	 5.01
	  	 Conditions of Initial Credit Extension
	  	47
	 5.02
	  	 Conditions to all Credit Extensions
	  	50
		
	 ARTICLE VI. REPRESENTATIONS AND WARRANTIES
	  	51
	 6.01
	  	 Existence, Qualification, and Power; Compliance with Laws
	  	51

  

					
	 6.02
	  	 Authorization; No Contravention
	  	51
	 6.03
	  	 Governmental Authorization; Other Consents
	  	51
	 6.04
	  	 Binding Effect
	  	52
	 6.05
	  	 Financial Statements; No Material Adverse Effect
	  	52
	 6.06
	  	 Litigation
	  	52
	 6.07
	  	 No Default
	  	52
	 6.08
	  	 Ownership of Property; Liens
	  	52
	 6.09
	  	 Environmental Compliance
	  	52
	 6.10
	  	 Insurance
	  	53
	 6.11
	  	 Taxes
	  	53
	 6.12
	  	 ERISA Compliance
	  	53
	 6.13
	  	 Subsidiaries; Equity Interests
	  	55
	 6.14
	  	 Margin Regulations; Investment Company Act; Public Utility Holding Company Act
	  	55
	 6.15
	  	 Disclosure
	  	55
	 6.16
	  	 Compliance with Laws
	  	55
	 6.17
	  	 Drainage/Condemnation/Zoning
	  	55
	 6.18
	  	 Property Condition
	  	56
	 6.19
	  	 Representations Concerning Leases
	  	56
	 6.20
	  	 Contracts and Plans
	  	56
	 6.21
	  	 Reciprocal Agreements
	  	56
	 6.22
	  	 Management Agreements
	  	57
	 6.23
	  	 Franchise Agreements
	  	57
	 6.24
	  	 Solvency
	  	57
	 6.25
	  	 Operating Leases
	  	57
	 6.26
	  	 Ground Lease Representations
	  	57
		
	 ARTICLE VII. AFFIRMATIVE COVENANTS
	  	58
	 7.01
	  	 Financial Statements
	  	58
	 7.02
	  	 Certificates; Other Information
	  	59
	 7.03
	  	 Notices
	  	60
	 7.04
	  	 Payment of Obligations
	  	61
	 7.05
	  	 Preservation of Existence, Etc.
	  	61
	 7.06
	  	 Maintenance of Properties
	  	61
	 7.07
	  	 Compliance with Laws
	  	61
	 7.08
	  	 Books and Records
	  	61
	 7.09
	  	 Inspection Rights
	  	61
	 7.10
	  	 Use of Proceeds
	  	62
	 7.11
	  	 Other Property Information
	  	62
	 7.12
	  	 Reports and Testing
	  	62
	 7.13
	  	 Environmental Matters
	  	62
	 7.14
	  	 Contracts
	  	64
	 7.15
	  	 Insurance
	  	64
	 7.16
	  	 Condemnation
	  	65
	 7.17
	  	 Title and Permitted Encumbrances
	  	66
	 7.18
	  	 Taxes and Other Impositions
	  	66
	 7.19
	  	 Compliance with Laws
	  	66
	 7.20
	  	 Maintenance, Repair, and Restoration
	  	66
	 7.21
	  	 Operation of Property
	  	67
	 7.22
	  	 Delivery of Leasing Information and Documents
	  	67
	 7.23
	  	 Income from the Borrowing Base Properties
	  	67

  

					
	 7.24
	  	 Compliance and Default
	  	67
	 7.25
	  	 Concerning Leases, Operating Leases, and Rents
	  	67
	 7.26
	  	 Property Management
	  	68
	 7.27
	  	 Franchise Agreements
	  	69
	 7.28
	  	 Operating Leases
	  	71
	 7.29
	  	 REIT Status
	  	71
	 7.30
	  	 Ground Leases
	  	71
	 7.31
	  	 Subsidiary Guaranties
	  	72
		
	 ARTICLE VIII. NEGATIVE COVENANTS
	  	72
			
	 8.01
	  	 Liens
	  	72
	 8.02
	  	 Investments
	  	73
	 8.03
	  	 Indebtedness; Liens with respect to Subsidiary Guarantors
	  	73
	 8.04
	  	 Fundamental Changes
	  	74
	 8.05
	  	 Dispositions
	  	74
	 8.06
	  	 Restricted Payments
	  	75
	 8.07
	  	 Change in Nature of Business
	  	75
	 8.08
	  	 Transactions with Affiliates
	  	75
	 8.09
	  	 Burdensome Agreements
	  	75
	 8.10
	  	 Use of Proceeds
	  	76
	 8.11
	  	 Material Agreements
	  	76
	 8.12
	  	 Lease Approval
	  	76
	 8.13
	  	 Financial Covenants
	  	76
		
	 ARTICLE IX. EVENTS OF DEFAULT AND REMEDIES
	  	77
			
	 9.01
	  	 Events of Default
	  	77
	 9.02
	  	 Remedies Upon Event of Default
	  	80
	 9.03
	  	 Application of Funds
	  	81
		
	 ARTICLE X. ADMINISTRATIVE AGENT
	  	81
			
	 10.01
	  	 Appointment and Authority
	  	81
	 10.02
	  	 Rights as a Lender
	  	82
	 10.03
	  	 Exculpatory Provisions
	  	82
	 10.04
	  	 Reliance by Administrative Agent
	  	83
	 10.05
	  	 Delegation of Duties
	  	83
	 10.06
	  	 Resignation of Administrative Agent
	  	83
	 10.07
	  	 Non-Reliance on Administrative Agent and Other Lenders
	  	84
	 10.08
	  	 No Other Duties, Etc.
	  	84
	 10.09
	  	 Administrative Agent May File Proofs of Claim
	  	84
	 10.10
	  	 Collateral and Guaranty Matters
	  	85
		
	 ARTICLE XI. MISCELLANEOUS
	  	86
			
	 11.01
	  	 Amendments, Etc.
	  	86
	 11.02
	  	 Notices; Effectiveness; Electronic Communication
	  	88
	 11.03
	  	 No Waiver; Cumulative Remedies
	  	89
	 11.04
	  	 Expenses; Indemnity; Damage Waiver
	  	89
	 11.05
	  	 Payments Set Aside
	  	91
	 11.06
	  	 Successors and Assigns
	  	91
	 11.07
	  	 Treatment of Certain Information; Confidentiality
	  	94
	 11.08
	  	 Right of Setoff
	  	94
	 11.09
	  	 Interest Rate Limitation
	  	95
	 11.10
	  	 Counterparts; Integration; Effectiveness
	  	95

  

					
	 11.11
	  	 Survival of Representations and Warranties
	  	95
	 11.12
	  	 Severability
	  	95
	 11.13
	  	 Replacement of Lenders
	  	96
	 11.14
	  	 Assignment of Contracts and Plans
	  	96
	 11.15
	  	 Governing Law; Jurisdiction; Etc.
	  	96
	 11.16
	  	 Waiver of Jury Trial
	  	97
	 11.17
	  	 USA PATRIOT Act Notice
	  	97
	 11.18
	  	 Time of the Essence
	  	97
	 11.19
	  	 ENTIRE AGREEMENT
	  	97
		
	 SIGNATURES
	  	S-1

  

 SCHEDULES 
  

			
	 1.01(a)
	  	 Operating Lessees and Franchisors

	 1.01(b)
	  	 Managers

	 2.01
	  	 Commitments and Pro Rata Shares

	 4.01
	  	 Initial Borrowing Base Properties

	 4.06
	  	 Non-Guarantor Subsidiaries

	 6.13
	  	 Subsidiaries; Other Equity Investments; Equity Interests in Borrower

	 8.01
	  	 Existing Liens

	 8.03
	  	 Existing Indebtedness

	 11.02
	  	 Administrative Agent’s Office; Certain Addresses for Notices

  
 EXHIBITS 
  

			
	 	  	Form of
		
	 A
	  	 Loan Notice

	 B
	  	 Note

	 C
	  	 Compliance Certificate

	 D
	  	 Assignment and Assumption

	 E-1
	  	 Parent Guaranty

	 E-2
	  	 Subsidiary Guaranty

	 F
	  	 Survey Requirements

	 G
	  	 Borrowing Base Report

  

 CREDIT AGREEMENT 
  
 This CREDIT AGREEMENT (“Agreement”) is entered into as of August     , 2004 (the
“Closing Date”), among CAPITAL LODGING OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (“Borrower”), CAPITAL LODGING, a Maryland real estate investment trust (“Parent”),
each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”), and BANK OF AMERICA, N.A., as Administrative Agent and L/C Issuer. 
  
 Borrower has requested that the Lenders provide a revolving credit facility,
and the Lenders are willing to do so on the terms and conditions set forth herein. 
  
 In consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows: 
  
 ARTICLE I. 
 DEFINITIONS AND
ACCOUNTING TERMS 
  
 1.01 Defined Terms. As used in
this Agreement, the following terms shall have the meanings set forth below: 
  
 “Acceptable Appraisal” means an appraisal commissioned by and addressed to Administrative Agent (reasonably acceptable to Administrative Agent as to form, substance, and appraisal date), prepared by a
professional appraiser acceptable to Administrative Agent, and having the minimum qualifications required under all Laws applicable to Administrative Agent. 
  
 “Adjusted NOI” means, for any Borrowing Base Property for any period, (a) all lease payments pursuant to the Operating Lease for such
Borrowing Base Property, minus (b) any ground lease payments, minus (c) appropriate accruals for items such as annual taxes, insurance, or other operating expenses payable by the owner (as opposed to the applicable Operating Lessee) of
such Borrowing Base Property applied on a consistent basis utilizing customary accounting principles reasonably acceptable to Administrative Agent, minus (d) FF&E Reserves and Management Fee Reserves. If the Operating Lessee of any
Borrowing Base Property is a wholly owned Subsidiary of Parent, then Adjusted NOI shall include the Consolidated Net Income of such Subsidiary attributable to such Borrowing Base Property. 
  
 “Administrative Agent” means Bank of America in its capacity
as administrative agent under any of the Loan Documents, or any successor administrative agent. 
  
 “Administrative Agent’s Office” means Administrative Agent’s address and, as appropriate, account as set forth on Schedule
11.02, or such other address or account as Administrative Agent may from time to time notify to Borrower and the Lenders. 
  
 “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by Administrative Agent. 
  
 “Affiliate” means, with respect to any Person, another
Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 
  
 “Agent-Related Persons” means Administrative Agent, together with its Affiliates (including, in the case of Bank of America in its
capacity as Administrative Agent, the Arranger), and the officers, directors, employees, agents and attorneys-in-fact of such Persons and Affiliates. 
  

 1 

 “Aggregate Commitments” means the Commitments of all the Lenders. 
  
 “Agreement” means this Credit Agreement. 

 
 “Applicable Rate” means two and three-fourths of one
percent (2.75%). 
  
 “Appraised Value” means,
with respect to any Borrowing Base Property as of any date, the appraised value of such Borrowing Base Property on an “as is” basis pursuant to an Acceptable Appraisal. 
  
 “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a
Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 
  
 “Arrangers” means Banc of America Securities LLC and Wachovia Capital Markets LLC, each as a joint lead arranger and a joint book manager. 
  
 “Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible
Assignee (with the consent of any party whose consent is required by Section 11.06(b)), and accepted by Administrative Agent, in substantially the form of Exhibit D or any other form approved by Administrative Agent. 
  
 “Attributable Indebtedness” means, on any date, (a) in
respect of any capital lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease Obligation, the capitalized
amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a capital lease. 
  
 “Availability Period” means the period from and including
the Closing Date to the earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments pursuant to Section 2.05, and (c) the date of termination of the commitment of each Lender to make Loans and of the obligation
of L/C Issuer to make L/C Credit Extensions pursuant to Section 9.02. 
  
 “Bank of America” means Bank of America, N.A. and its successors. 
  
 “Base Rate” means for any day a fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the
rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate.” The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s
costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such rate announced by Bank of America shall
take effect at the opening of business on the day specified in the public announcement of such change. 
  
 “Base Rate Loan” means a Loan that bears interest based on the Base Rate. 
  
 “Borrower” has the meaning specified in the introductory paragraph hereto. 
  
 “Borrowing” means a borrowing consisting of Loans of the
same Type and, in the case of Eurodollar Rate Loans, having the same Interest Period made by each of the Lenders pursuant to Section 2.01. 
  
 “Borrowing Base” has the meaning specified in Section 4.01(a). 
  

 2 

 “Borrowing Base Properties” means each of the Properties that are owned or leased by a
Loan Party and that are Collateral and that either (a) is an Initial Borrowing Base Property or (b) becomes a Borrowing Base Property pursuant to Section 4.02, and “Borrowing Base Property” means any one of the Borrowing Base
Properties. 
  
 “Borrowing Base Report” means a
report in substantially the form of Exhibit G certified by a Responsible Officer of Borrower, setting forth in reasonable detail the date acquired, location, and a calculation of the Implied Loan Amount for the Borrowing Base Properties
(individually and in the aggregate) and a calculation of the Borrowing Base. 
  
 “Business Day” means any day other than a Saturday, Sunday, or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the state where Administrative
Agent’s Office is located or in New York City and, if such day relates to any Eurodollar Rate Loan, means any such day on which dealings in Dollar deposits are conducted by and between banks in the London interbank eurodollar market.

  
 “Cash Available for Distribution” means, for
any Person for any period, (a) Consolidated EBITDA, less (b) the aggregate amount of scheduled principal payments on consolidated Indebtedness required to be made during such period (other than optional principal prepayments and scheduled
principal payments in respect of any Indebtedness which is payable in a single installment at final maturity), less (c) Consolidated Interest Charges payable in cash during such period, less (d) FF&E Reserves. 
  
 “Cash Collateralize” has the meaning specified in Section
2.03(g). 
  
 “Change in Law” means the
occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or
application thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or directive by any Governmental Authority. 
  
 “Change of Control” means, with respect to any Person, an event or series of events by which: 
  
 (a) any “person” or “group” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all
securities that such person or group has the right to acquire (such right, an “option right”), whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of thirty-five percent (35%) or
more of the equity securities of such Person entitled to vote for members of the board of directors or equivalent governing body of such Person on a fully-diluted basis (and taking into account all such securities that such person or group has the
right to acquire pursuant to any option right); 
  
 (b) during any period of twelve (12) consecutive months, a majority of the members of the board of directors or other equivalent governing body of such Person cease to be composed of individuals (i) who were members of that board or
equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or
nomination at least a majority of that board or equivalent governing body or (iii) whose election 

  

 3 

 
or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time
of such election or nomination at least a majority of that board or equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination for, or assumption of office as, a member of that
board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or
more directors by or on behalf of the board of directors); or 
  
 (c) any Person or two or more Persons acting in concert shall have acquired by contract or otherwise, or shall have entered into a contract or arrangement that, upon consummation thereof, will result in its or their
acquisition of the power to exercise, directly or indirectly, a controlling influence over the management or policies of such Person, or control over the equity securities of such Person entitled to vote for members of the board of directors or
equivalent governing body of such Person on a fully-diluted basis (and taking into account all such securities that such Person or group has the right to acquire pursuant to any option right) representing thirty-five percent (35%) or more of the
combined voting power of such securities. 
  
 “Closing
Date” has the meaning specified in the introductory paragraph hereto. 
  
 “CMBS Swap” means that certain Swap Contract having a tenor of not greater than three (3) years, and in any event not to exceed the Maturity Date, entered into in connection with the one hundred
million Dollar ($100,000,000) commercial mortgage-backed security facility to a single-purpose bankruptcy remote Subsidiary of Borrower. 
  
 “Code” means the Internal Revenue Code of 1986. 
  

“Collateral” means the Real Estate Collateral, the Personal Property Collateral, and all other property of the Loan Parties on which
Liens have been granted to Administrative Agent or the Lenders to secure the Obligations. 
  
 “Commitment” means, as to each Lender, its obligation to (a) make Loans to Borrower pursuant to Section 2.01, and (b) purchase participations in L/C Obligations, in an aggregate principal
amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount
may be adjusted from time to time in accordance with this Agreement. 
  
 “Compliance Certificate” means a certificate substantially in the form of Exhibit C. 
  
 “Consolidated EBITDA” means, for any Person for any period, an amount equal to (a) Consolidated Net Income for such period, plus (b) the
following to the extent deducted in calculating such Consolidated Net Income: (i) Consolidated Interest Charges for such period; (ii) the provision for federal, state, local, and foreign income taxes payable by such Person and its Subsidiaries for
such period; (iii) the amount of depreciation and amortization expense deducted in determining such Consolidated Net Income; and (iv) other expenses reducing such Consolidated Net Income which do not represent a cash item in such period or any
future period, less (c) all non-cash items increasing Consolidated Net Income for such period. 
  
 “Consolidated Fixed Charge Coverage Ratio” means, for Parent and its Subsidiaries on a consolidated basis as of the last day of any
fiscal quarter, the ratio of (a) (i) Consolidated EBITDA less (ii) FF&E Reserves, to (b) Fixed Charges, in each case for the four (4) fiscal quarters ending on the date 

  

 4 

 
of determination. For purposes of calculating the Fixed Charge Coverage Ratio for the first four (4) fiscal quarters following the Closing Date, (i) Fixed
Charges shall be calculated on a pro forma basis as if all Indebtedness outstanding as of the date of determination were outstanding during the four (4) fiscal quarters ending on the date of determination (other than Indebtedness repaid on the
Closing Date), (ii) Consolidated EBITDA shall be calculated on a pro forma basis as if all Consolidated Net Income for any Person or Property acquired during the period of determination was acquired on the first (1st) day of such period of determination, (iii) to the extent deducted in calculating Consolidated EBITDA, one-time charges incurred as a result of
accounting adjustments with respect to Properties acquired by one or more of the Subsidiaries on or about the Closing Date, in an aggregate amount not to exceed $2,000,000 may be added back to Consolidated EBITDA, and (iv) Consolidated EBITDA of any
Person shall only include amounts attributable to any other Person (other than a Subsidiary of such Person) in which such Person owns an interest to the extent distributed to such Person in cash. 
  
 “Consolidated Funded Indebtedness” means, for any Person as
of any date of determination, the sum of (a) the outstanding principal amount of all Indebtedness whether current or long-term, for borrowed money (including Obligations hereunder) and all Indebtedness evidenced by bonds, debentures, notes, loan
agreements, or other similar instruments, (b) all purchase money Indebtedness, (c) all direct obligations arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds to the extent they
have been exercised by the beneficiary thereof, and similar instruments, (d) all obligations in respect of the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business), (e) Attributable
Indebtedness in respect of capital leases and Synthetic Lease Obligations, and (f) without duplication, all Guarantees with respect to outstanding Indebtedness of the types specified in clauses (a) through (e) above of Persons other than such Person
or any of its Subsidiaries. 
  
 “Consolidated Interest
Charges” means, for any Person for any period, the sum of (a) all interest, premium payments, debt discount, fees, charges, and related expenses of such Person in connection with borrowed money (including capitalized interest not covered by
a reserve account under a construction loan) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP, and (b) the portion of rent expense of such Person with respect to such
period under capital leases that is treated as interest in accordance with GAAP. 
  
 “Consolidated Leverage Ratio” means, for Parent and its Subsidiaries on a consolidated basis as of the last day of any fiscal quarter, the ratio of (a) Consolidated Funded Indebtedness as of such
date, to (b) Consolidated EBITDA, for the four (4) fiscal quarters ending on such date. For purposes of calculating the Consolidated Leverage Ratio for the first four (4) fiscal quarters following the Closing Date, (i) Consolidated EBITDA shall be
calculated on a pro forma basis as if all Consolidated Net Income for any Person or Property acquired during the period of determination was acquired on the first (1st) day of such period of determination, (ii) to the extent deducted in calculating Consolidated EBITDA, one-time charges incurred as a result of accounting
adjustments with respect to Properties acquired by one or more of the Subsidiaries on or about the Closing Date, in an aggregate amount not to exceed $2,000,000 may be added back to Consolidated EBITDA, and (iii) Consolidated EBITDA of any Person
shall only include amounts attributable to any other Person (other than a Subsidiary of such Person) in which such Person owns an interest to the extent distributed to such Person in cash. 
  
 “Consolidated Net Income” means, for any Person for any
period, the net income of such Person (excluding extraordinary gains and extraordinary losses) for that period, calculated in accordance with GAAP. 
  
 “Consolidated Tangible Net Worth” means, for Parent and the Subsidiaries on a consolidated basis as of any date of determination,
Shareholders’ Equity on that date minus Intangible Assets on that date 

  

 5 

 
minus any non-cash gain (or plus any non-cash loss, as applicable) resulting from any mark-to-market adjustments made directly to Shareholders’
Equity as a result of fluctuations in the value of financial instruments owned by Parent or any of its Subsidiaries as mandated under FAS 133, all in accordance with GAAP. 
  
 “Consolidated Total Assets” means, for Parent and its Subsidiaries on a consolidated basis as of any date
of determination, all assets determined in accordance with GAAP. 
  
 “Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its
property is bound. 
  
 “Control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and
“Controlled” have meanings correlative thereto. 
  
 “Credit Extension” means each of the following: (a) a Borrowing; and (b) an L/C Credit Extension. 
  
 “Debt Service” means, for any Person for any period, the sum of (a) all regularly scheduled principal payments on Indebtedness (other
than scheduled payments of principal on Indebtedness which pay such Indebtedness in full, but only to the extent such final payment is greater than the scheduled principal payment immediately preceding such final payment), and (b) all Consolidated
Interest Charges, in each case payable in cash during such period in respect of all Indebtedness of such Person. 
  
 “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment
for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors
generally. 
  
 “Default” means any event or
condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default. 
  
 “Default Rate” means (a) when used with respect to Obligations other than Letter of Credit Fees, an interest rate equal to (i) the Base
Rate plus (ii) two percent (2%) per annum; provided, however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise
applicable to such Loan plus two percent (2%) per annum, and (b) when used with respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus two percent (2%) per annum. 
  
 “Defaulting Lender” means any Lender that (a) has failed to
fund any portion of the Loans or participations in L/C Obligations required to be funded by it hereunder within one Business Day of the date required to be funded by it hereunder, (b) has otherwise failed to pay over to Administrative Agent or any
other Lender any other amount required to be paid by it hereunder within one Business Day of the date when due, unless the subject of a good faith dispute, or (c) has been deemed insolvent or become the subject of a bankruptcy or insolvency
proceeding. 
  
 “Disposition” or
“Dispose” means the sale, transfer, license, lease, or other disposition (including any sale and leaseback transaction) of any property by any Person, including any sale, assignment, transfer or other disposal, with or without
recourse, of any notes or accounts receivable or any rights and claims associated therewith. 
  

 6 

 “Dollar” and “$” mean lawful money of the United States. 
  
 “Eligible Assignee” means: (a) a Lender; (b) an Affiliate of
a Lender; (c) an Approved Fund; and (d) any other Person (other than a natural person) approved by (i) Administrative Agent and L/C Issuer, and (ii) unless an Event of Default has occurred and is continuing, Borrower (each such approval not to be
unreasonably withheld or delayed); provided that notwithstanding the foregoing, “Eligible Assignee” shall not include Borrower or any of Borrower’s Affiliates or Subsidiaries. 
  
 “Employer Plan” means any “employee benefit plan”
(as such term is defined in Section 3(3) of ERISA) established by Borrower or, with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate. 
  
 “Environmental Claim” means any investigative, enforcement,
cleanup, removal, containment, remedial or other private or governmental or regulatory action at any time threatened, instituted or completed pursuant to any applicable Environmental Requirement (hereinafter defined), against Borrower or against or
with respect to any Borrowing Base Property or any condition, use or activity on any Borrowing Base Property (including any such action against Administrative Agent or any Lender), and any claim at any time threatened or made by any person against
Borrower or against or with respect to any Borrowing Base Property or any condition, use or activity on any Borrowing Base Property (including any such claim against Administrative Agent or any Lender), relating to damage, contribution, cost
recovery, compensation, loss or injury resulting from or in any way arising in connection with any Hazardous Material (hereinafter defined) or any Environmental Requirement. 
  
 “Environmental Damages” means, whether before or after the Release Date, (a) the presence of any Hazardous
Material on any Borrowing Base Property, or any escape, seepage, leakage, spillage, emission, release, discharge or disposal of any Hazardous Material on or from any Borrowing Base Property, or the migration or release or threatened migration or
release of any Hazardous Material to, from or through any Borrowing Base Property, on or before the Release Date; or (b) any act, omission, event or circumstance existing or occurring in connection with the handling, treatment, containment, removal,
storage, decontamination, clean-up, transport or disposal of any Hazardous Material which is at any time on or before the Release Date present on any Borrowing Base Property; or (c) the breach of any representation, warranty, covenant or agreement
contained in this Agreement because of any event or condition occurring or existing on or before the Release Date; or (d) any violation on or before the Release Date, of any Environmental Requirement in effect on or before the Release Date,
regardless of whether any act, omission, event or circumstance giving rise to the violation constituted a violation at the time of the occurrence or inception of such act, omission, event or circumstance; or (e) any Environmental Claim, or the
filing or imposition of any environmental lien against any Borrowing Base Property, because of, resulting from, in connection with, or arising out of any of the matters referred to in subsections (a) through (d) preceding; and regardless of whether
any of the foregoing subsections (a) through (e) was caused by Borrower or a tenant or subtenant, or a prior owner of any Borrowing Base Property or its tenant or subtenant, or any third party, including but not limited to (i) injury or damage to
any person, property or natural resource occurring on or off of any Borrowing Base Property, including but not limited to the cost of demolition and rebuilding of any improvements on real property; (ii) the investigation or remediation of any such
Hazardous Material or violation of Environmental Requirement, including but not limited to the preparation of any feasibility studies or reports and the performance of any cleanup, remediation, removal, response, abatement, containment, closure,
restoration, monitoring or similar work required by any Environmental Requirement or necessary to have full use and benefit of any Borrowing Base Property as contemplated by the Loan Documents (including any of the same in connection with any
foreclosure action or transfer in lieu thereof); (iii) all liability to pay or indemnify any person or Governmental Authority for costs expended in connection with any of the foregoing; (iv) 

  

 7 

 
the investigation and defense of any claim, whether or not such claim is ultimately defeated; and (v) the settlement of any claim or judgment. 
  
 “Environmental Laws” means any and all Federal, state,
local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or
the release of any materials into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems. 
  
 “Environmental Requirement” means any Environmental Law (hereinafter defined), agreement or restriction
(including but not limited to any condition or requirement imposed by any insurance or surety company), as the same now exists or may be changed or amended or come into effect in the future, which pertains to health, safety, any Hazardous Material,
or the environment, including but not limited to ground or air or water or noise pollution or contamination, and underground or aboveground tanks. 
  
 “Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in)
such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable
for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit
interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination. 

 
 “ERISA” means the Employee Retirement Income Security Act
of 1974. 
  
 “ERISA Affiliate” means any trade or
business (whether or not incorporated) under common control with Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code). 

 
 “ERISA Event” means: (a) a Reportable Event with respect
to a Pension Plan; (b) a withdrawal by Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of
operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the
filing of a notice of intent to terminate, the treatment of an Employer Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an
event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA,
other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon Borrower or any ERISA Affiliate. 
  
 “Eurodollar Rate” means for any Interest Period with respect to a Eurodollar Rate Loan: 
  
 (a) the rate per annum equal to the rate determined by
Administrative Agent to be the offered rate that appears on the page of the Telerate screen (or any successor thereto) that displays an average British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first
day of such Interest Period) with a term equivalent to such Interest 

  

 8 

 
Period, determined as of approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of such Interest Period, or 
  
 (b) if the rate referenced in the preceding clause (a) does
not appear on such page or service or such page or service shall not be available, the rate per annum equal to the rate determined by Administrative Agent to be the offered rate on such other page or other service that displays an average British
Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two (2) Business
Days prior to the first day of such Interest Period, or 
  
 (c) if the rates referenced in the preceding clauses (a) and (b) are not available, the rate per annum determined by Administrative Agent as the rate of interest at which deposits in Dollars for delivery on the first
day of such Interest Period in same day funds in the approximate amount of the Eurodollar Rate Loan being made, continued or converted by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of America’s
London Branch to major banks in the London interbank eurodollar market at their request at approximately 4:00 p.m. (London time) two (2) Business Days prior to the first day of such Interest Period. 
  
 “Eurodollar Rate Loan” means a Loan that bears interest at a
rate based on the Eurodollar Rate. 
  
 “Event of
Default” has the meaning specified in Section 9.01. 
  
 “Excluded Taxes” means, with respect to Administrative Agent, any Lender, L/C Issuer, any Participant, or any other recipient of any payment to be made by or on account of any obligation of Borrower hereunder, (a) taxes
imposed on or measured by its overall net income (however denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient is organized
or in which its principal office is located or, in the case of any Lender, in which its applicable Lending Office is located, (b) any branch profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which
Borrower is located (c) in the case of a Foreign Lender (other than an assignee pursuant to a request by Borrower under Section 11.13), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign
Lender becomes a party hereto (or designates a new Lending Office or otherwise comes to act through a new office in connection with its interest as a Lender) or is attributable to such Foreign Lender’s failure or inability (other than as a
result of a Change in Law described in clause (a) or clause (b) of the definition of “Change in Law” occurring after the date such Foreign Lender becomes party hereto (or, in the case of withholding tax arising as a result of
the Foreign Lender designating a new Lending Office or otherwise coming to act through a new office in connection with its interest as a Lender, after the date of such event)) to comply with Section 3.01(e), except to the extent that such
Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from Borrower with respect to such withholding tax pursuant to Section 3.01(a), (d) in
the case of a Foreign Participant, any withholding tax that is imposed on amounts payable to such Foreign Participant at the time that such Foreign Participant comes to hold such participation interest in a Loan hereunder (or comes to act through a
new office with respect to such participation interest) or is attributable to such Foreign Participant’s failure or inability (other than as a result of a Change in Law described in clause (a) or clause (b) of the definition of
“Change in Law” occurring after the date such Foreign Participant comes to hold a participation interest in a loan hereunder (or, in the case of withholding tax arising as a result of the Foreign Participant coming to act through a new
office in connection with such participation interest, after the date of such event), to comply with Section 3.01(e) (with such compliance determined as though such Foreign Participant was a Foreign 

  

 9 

 
Lender), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office (or
assignment), to receive additional amounts from Borrower with respect to such withholding tax pursuant to Section 3.01(a), (e) in the case of a Lender or Participant that is treated as a partnership or other look-through entity for applicable
tax purposes, any withholding tax that is imposed as a result of the characteristics of a direct or indirect holder of an interest in such an entity at the time that such interest came to be held by such holder or is attributable to such
holder’s failure to provide the documentation that would be required by Section 3.01(e) from such holder were it a Foreign Lender, (f) any withholding tax imposed as a result of any failure by any Person in the chain of payment between
(i) a Lender, Participant or direct or indirect holder of an interest in any entity described in clause (e) and (ii) Borrower to provide forms required by Section 3.01(e) in accordance with procedures required by applicable tax law,
(g) any U.S. backup withholding tax and (h) any taxes, withholdings or deductions required or imposed by tax laws of a jurisdiction other than the United States of America or any political subdivision or taxing authority thereof or therein that are
(i) not imposed as a result of a connection between Borrower or any Guarantor and such jurisdiction or (ii) imposed as a result of a connection between Borrower or any Guarantor and such jurisdiction arising solely as a result of this Agreement or
the transactions contemplated hereby. 
  
 “Federal Funds
Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the
Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day
as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of
1/100 of 1%) charged to Bank of America on such day on such transactions as determined by Administrative Agent. 
  
 “Fee Letter” means the letter agreement, dated June 11, 2004, among Borrower, Administrative Agent, Syndication Agent, and Arrangers.

  
 “FF&E” means furniture, fixtures, and
equipment. 
  
 “FF&E Reserves” means, with
respect to any Borrowing Base Property or Person for any period, and without duplication, an assumed reserve for FF&E and other capital expenditures equal to four percent (4%) of Gross Revenues of such Borrowing Base Property or Person for such
period. 
  
 “Fixed Charges” means, for any
Person, for any period, (a) Debt Service, plus (b) Restricted Payments with respect to preferred stock or other preferred equity interests issued by such Person required to be paid in cash during such period. 
  
 “Foreign Lender” means any Lender that is (a) organized
under the laws of a jurisdiction other than the United States, any State thereof, or the District of Columbia, or (b) otherwise treated as not a “United States person” for U.S. federal income tax purposes (for instance, as a result of
being an entity whose separate existence from a Person that is not a United States person is disregarded for federal income tax purposes). For purposes of the definition of “Excluded Taxes” hereunder and for purposes of Section
3.01(f), an L/C Issuer that is a Lender described in clause (a) or clause (b) of the preceding sentence will be treated as a “Foreign Lender.” 
  
 “Foreign Participant” means any Participant that is (a) organized under the laws of a jurisdiction other
than the United States, any State thereof or the District of Columbia or (b) otherwise treated as not a “United States person” for U.S. federal income tax purposes (for instance, as a result of being an entity 

  

 10 

 
whose separate existence from a Person that is not a United States person is disregarded for federal income tax purposes). 
  
 “Franchise Agreements” means each franchise or similar
agreement entered into by and between an Operating Lessee and each Franchisor with respect to a Borrowing Base Property pursuant to which such Operating Lessee is permitted to operate the applicable Borrowing Base Property under the “flag”
or other trade name that is the subject thereof, and “Franchise Agreement” means any one of the Franchise Agreements. 
  
 “Franchisors” means each franchisor of each Borrowing Base Property as set forth on Schedule 1.01(a) or such other entity selected
as the franchisor of the applicable Borrowing Base Property in accordance with the terms of this Agreement, and “Franchisor” means any one of the Franchisors. 
  
 “FRB” means the Board of Governors of the Federal Reserve System of the United States. 
  
 “Fund” means any Person (other than a natural person) that
is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business. 
  
 “GAAP” means generally accepted accounting principles in the United States set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant
segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied. 
  
 “Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, whether
state or local, and any agency, authority, instrumentality, regulatory body, court, central bank, or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government
(including any supra-national bodies such as the European Union or the European Central Bank). 
  
 “Gross Revenues” means, for any real property or Person, all revenues and receipts of every kind derived from operating such real property or all real properties owned by such Person, as the case may
be, and parts thereof, including, but not limited to: income (from both cash and credit transactions), before discounts for prompt or cash payments, from rentals or sales of rooms, stores, offices, meeting space, exhibit space, or sales space of
every kind; license, lease, and concession fees and rentals (not including gross receipts of licensees, lessees, and concessionaires); net income from vending machines; health club membership fees; food and beverage sales; sales of merchandise
(other than proceeds from the sale of FF&E no longer necessary to the operation of such real property or real properties); service charges, to the extent not distributed to the employees at such real property or real properties as, or in lieu
of, gratuities; and proceeds, if any, from business interruption or other loss of income insurance; provided, however, that Gross Revenues shall not include the following: gratuities to employees of such real property or real properties; federal,
state, or municipal excise, sales, use, or similar taxes collected directly from tenants, patrons, or guests or included as part of the sales price of any goods or services; insurance proceeds (other than proceeds from business interruption or other
loss of income insurance); condemnation proceeds; or any proceeds from any sale of such real property or real properties. 
  
 “Ground Lease” means, (a) that certain sublease of the ground lease of the Wyndham Palm Springs Borrowing Base Property, and (b) any
other ground lease of a Property that is admitted into the 

  

 11 

 
Borrowing Base after the Closing Date pursuant to Section 4.02 and that is approved by the Required Lenders. 
  
 “Guarantee” means, as to any Person, any (a) any obligation,
contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or
services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial
statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into for the purpose of assuring in any other manner the
obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any
Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien); provided
that endorsements of negotiable instruments or documents for deposit or collection in the ordinary course of business shall not constitute a Guarantee of any amounts. The amount of any Guarantee shall be deemed to be an amount equal to the
stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith. The term “Guarantee” as a verb has a corresponding meaning. 
  
 “Guaranties” means the Parent Guaranty and the Subsidiary Guaranty, and “Guaranty” means any one of the Guaranties.

  
 “Guarantors” means, collectively, Parent and
each Subsidiary Guarantor, and “Guarantor” means any one of the Guarantors. 
  
 “Hazardous Material” means any substance, whether solid, liquid or gaseous: which is listed, defined or regulated as a “hazardous substance”, “hazardous waste” or “solid
waste”, or otherwise classified as hazardous or toxic, in or pursuant to any Environmental Requirement; or which is or contains asbestos, radon, any polychlorinated biphenyl, urea formaldehyde foam insulation, explosive or radioactive material,
or motor fuel or other petroleum hydrocarbons; or which causes or poses a threat to cause a contamination or nuisance on any Borrowing Base Property or any adjacent property or a hazard to the environment or to the health or safety of persons on any
Borrowing Base Property. 
  
 “Implied Debt
Service” means, as of any date, the annual principal and interest payments required to amortize the Total Outstandings as of such date assuming equal monthly payments of principal and interest over a period of twenty-five (25) years at an
annual rate of interest equal to the greater of (a) two and one-half of one percent (2.50%) in excess of the most recent rate published on such date in the United States Federal Reserve Statistical Release (H.15) for 7-year Treasury Constant
Maturities, and (b) eight percent (8%). 
  
 “Implied Loan
Amount” has the meaning specified in Section 4.01(b). 
  
 “Improvements” means, with respect to any Borrowing Base Property, all on-site and off-site improvements to such Borrowing Base Property, together with all fixtures, tenant improvements, and appurtenances now or later to be
located on the Borrowing Base Property and/or in such improvements. 
  

 12 

 “Increasing Lender” has the meaning specified in Section 2.13(b). 
  
 “Indebtedness” means, as to any Person at a particular time,
without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP: 
  
 (a) all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan
agreements or other similar instruments; 
  
 (b)
all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments; 
  
 (c) net obligations of such Person under any Swap Contract;

  
 (d) all obligations of such Person to pay the
deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business); 
  
 (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including
indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse; 
  
 (f) capital leases and Synthetic Lease Obligations; 
  
 (g) all obligations of such Person to purchase, redeem,
retire, defease or otherwise make any payment in respect of any Equity Interest in such Person or any other Person, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference
plus accrued and unpaid dividends; and 
  
 (h) all Guarantees of such Person in respect of any of the foregoing. 
  
 For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any Person (other than a Subsidiary of such Person) in which such Person owns an interest, that is recourse to such Person. The
amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date. The amount of any capital lease or Synthetic Lease Obligation as of any date shall be deemed to be the amount
of Attributable Indebtedness in respect thereof as of such date. 
  
 “Indemnified Taxes” means Taxes other than Excluded Taxes. 
  
 “Indemnitees” has the meaning specified in Section 11.04(b). 
  
 “Initial Borrowing Base Properties” means the Properties listed on Schedule 4.01, and “Initial Borrowing Base
Property” means any one of the Borrowing Base Properties. 
  
 “Intangible Assets” means assets that are considered to be intangible assets under GAAP, including customer lists, goodwill, computer software, copyrights, trade names, trademarks, patents, franchises, licenses, unamortized
deferred charges, unamortized debt discount and capitalized research and development costs. 
  

 13 

 “Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the last
day of each Interest Period applicable to such Loan and the Maturity Date; provided, however, that if any Interest Period for a Eurodollar Rate Loan exceeds three (3) months, the respective dates that fall every three (3) months after
the beginning of such Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate Loan, the last Business Day of each month and the Maturity Date. 
  
 “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the date such Eurodollar
Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and ending on the date one (1), two (2), three (3), or six (6) months thereafter, as selected by Borrower in its Loan Notice; provided that: 
  
 (a) any Interest Period that would otherwise end on a day
that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day; 
  
 (b) any Interest Period that begins on the last Business Day
of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and

  
 (c) no Interest Period shall extend beyond
the Maturity Date. 
  
 “Investment” means, as to
any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of any Equity Interests of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption
of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor
Guarantees Indebtedness of such other Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute a business unit. For purposes of covenant compliance, the amount of
any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment. 
  
 “IRS” means the United States Internal Revenue Service. 
  
 “ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998”
published by the Institute of International Banking Law & Practice (or such later version thereof as may be in effect at the time of issuance). 
  
 “Issuer Documents” means with respect to any Letter of Credit, the Letter Credit Application, and any other document, agreement and
instrument entered into by L/C Issuer and Borrower (or any Subsidiary) or in favor L/C Issuer and relating to any such Letter of Credit. 
  
 “Laws” means, collectively, all international, foreign, Federal, state, and local statutes, treaties, rules, guidelines, regulations,
ordinances, codes, and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, licenses, authorizations and permits of, and agreements with, any Governmental Authority. 
  
 “L/C Advance” means, with respect to each Lender, such Lender’s funding of its participation in any L/C Borrowing in accordance with
its Pro Rata Share. 
  

 14 

 “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on the date when made or refinanced as a Borrowing. 
  
 “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the increase of the amount thereof. 
  
 “L/C Issuer” means Bank of America in its capacity as issuer
of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder. 
  
 “L/C Obligations” means, as at any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts,
including all L/C Borrowings. For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06. For all purposes of this Agreement,
if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the
amount so remaining available to be drawn. 
  
 “Lease” means each existing or future lease (other than an Operating Lease or a Ground Lease), sublease (to the extent of the applicable Loan Party’s rights thereunder) or other agreement under the terms of which any
person has or acquires any right to occupy or use any Borrowing Base Property, or any part thereof, or interest therein (a) for a term of greater than five (5) years, or (b) for the occupancy or use of more than five thousand (5,000) square feet of
the net rentable area of any Borrowing Base Property, and each existing or future guaranty of payment or performance thereunder, and all extensions, renewals, modifications, and replacements of each such lease, sublease, agreement, or guaranty.

  
 “Lender” has the meaning specified in the
introductory paragraph hereto. 
  
 “Lending
Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify Borrower and Administrative
Agent. 
  
 “Letter of Credit” means any letter of
credit issued hereunder. A Letter of Credit may be a commercial letter of credit or a standby letter of credit. 
  
 “Letter of Credit Application” means an application and agreement for the issuance or amendment of a Letter of Credit in the form from
time to time in use by L/C Issuer. 
  
 “Letter of Credit
Expiration Date” means the day that is seven (7) days prior to the Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business Day). 
  
 “Letter of Credit Fee” has the meaning specified in Section 2.03(i). 
  
 “Letter of Credit Sublimit” means an amount equal to
$25,000,000. The Letter of Credit Sublimit is part of, and not in addition to, the Aggregate Commitments. 
  
 “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or
preference, priority, or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or
other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing). 
  

 15 

 “Limited Recourse Guarantees” means Guarantees in the form of indemnification for fraud,
misapplication of cash, environmental claims, and other circumstances customarily required by institutional lenders in non-recourse secured financings of real estate or to special purpose entities. 
  
 “Loan” has the meaning specified in Section 2.01.

  
 “Loan Documents” means this Agreement, each
Note, each Mortgage and the other Security Documents, the Fee Letter, each Guaranty, the Issuer Documents, and such other documents evidencing, securing or pertaining to the Loan. 
  
 “Loan Notice” means a notice of (a) a Borrowing, (b) a conversion of Loans from one Type to the other, or
(c) a continuation of Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of Exhibit A. 
  

“Loan Parties” means, collectively, Borrower and each Guarantor. 
  
 “Management Agreements” means each management agreement entered into by and between an Operating Lessee and
each Manager, pursuant to which each Manager is to provide management and other services with respect to each applicable Borrowing Base Property, and “Management Agreement” means any one of the Management Agreements. 
  
 “Management Fee Reserves” means, with respect to any
Borrowing Base Property or Person for any period, a reserve for management fees equal to the greater of (a) any actual management fees or (b) an assumed reserve of three percent (3%) of Gross Revenues of such Borrowing Base Property or Person for
such period. 
  
 “Managers” means each manager of
a Borrowing Base Property as set forth on Schedule 1.01(b) or such other entity selected as the manager of the applicable Borrowing Base Property in accordance with the terms of this Agreement, and “Manager” means any one of
the Managers. 
  
 “Material Adverse Effect” means
(a) a material adverse change in, or a material adverse effect upon, the operations, business, assets, properties, liabilities (actual or contingent), condition (financial or otherwise), or prospects of Parent and its subsidiaries taken as a whole
or Borrower and its Subsidiaries taken as a whole, (b) a material impairment of the ability of any Loan Party to perform its obligations under any Loan Document to which it is a party, or (c) a material adverse effect upon the legality, validity,
binding effect, or enforceability against any Loan Party of any Loan Document to which it is a party. 
  
 “Material Agreement” means, for any Person or with respect to any Borrowing Base Property, any contract or agreement (other than
Operating Leases, Franchise Agreements, or Management Agreements) of such Person or with respect to such Borrowing Base Property the breach, violation, or termination of which could result in a Material Property Event. 
  
 “Material Environmental Event” means, with respect to
any Borrowing Base Property, (a) a violation of any Environmental Law with respect to such Borrowing Base Property, or (b) the presence of any Hazardous Materials on, about, or under such Borrowing Base Property that, under or pursuant to any
Environmental Law, would require remediation, if in the case of either (a) or (b), such event or circumstance could reasonably be expected to result in a Material Adverse Effect. 
  
 “Material Property Event” means, with respect to any Borrowing Base Property, the occurrence of any event
or circumstance that could reasonably be expected to result in a (a) material adverse effect 

  

 16 

 
with respect to the financial condition or the operations of such Borrowing Base Property, or (b) material adverse effect on the value or ownership of such
Borrowing Base Property. 
  
 “Material Title
Defects” means, with respect to any real property, defects, Liens, or encumbrances, other than Liens for local real estate taxes and similar local governmental charges, and other encumbrances in the nature of easements, servitudes,
restrictions, and rights-of-way that would customarily be deemed unacceptable title exceptions for a prudent lender (i.e., a prudent lender would reasonably determine that such exceptions, individually or in the aggregate, materially impair
the value or operations of the real property in question). 
  
 “Maturity Date” means August     , 2007. 
  
 “Mortgages” means each Mortgage (or Deed of Trust, as applicable), Assignment of Leases and Rents, Security Agreement, Financing Statement, and Assignment of Rental or similarly titled document, each
executed by a Loan Party, to or for the benefit of Administrative Agent, for the ratable benefit of the Lenders, covering the Collateral, and “Mortgage” means any one of the Mortgages. 
  
 “Multiemployer Plan” means any employee benefit plan of the
type described in Section 4001(a)(3) of ERISA, to which Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions. 
  
 “Note” means a promissory note made by Borrower in favor of
a Lender evidencing Loans made by such Lender, substantially in the form of Exhibit B. 
  
 “Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan or Letter of
Credit, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan
Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding, and including all debts,
liabilities, obligations, covenants and duties of, any Loan Party arising under the CMBS Swap or under any Swap Contract with any Lender or its Affiliate (i) relating to the Obligations, or (ii) approved by Required Lenders. 
  
 “On” or “on”, when used with respect to a
Borrowing Base Property or any property adjacent to a Borrowing Base Property, means “on, in, under, above or about.” 
  
 “Operating Leases” means each operating Lease entered into by and between an Operating Lessee and a Loan Party, which govern the
operation of each applicable Borrowing Base Property, and “Operating Lease” means any one of the Operating Leases. 
  
 “Operating Lessees” means each operating lessee of each Borrowing Base Property as set forth on Schedule 1.01(a) or such other
entity selected as the operating lessee of the applicable Borrowing Base Property in accordance with the terms of this Agreement, and “Operating Lessee” means any one of the Operating Lessees. 
  
 “Organization Documents” means: (a) with respect to any
corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles
of formation or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture, or other applicable agreement of 

  

 17 

 
formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with
the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity. 
  
 “Other Taxes” means all present or future stamp or documentary taxes or any other excise or property taxes,
charges, or similar levies arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document. 
  
 “Outstanding Amount” means (i) with respect to Loans on any
date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Loans, as the case may be, occurring on such date; and (ii) with respect to any L/C Obligations on any date, the amount
of such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any reimbursements by Borrower
of Unreimbursed Amounts. 
  
 “Parent Guaranty”
means the Guaranty executed by Parent in favor of Administrative Agent on behalf of the Lenders, substantially in the form of Exhibit E-1. 
  
 “Participant” has the meaning specified in Section 11.06(d). 
  
 “PBGC” means the Pension Benefit Guaranty Corporation. 
  
 “Pension Plan” means any “employee pension benefit
plan” (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by Borrower or any ERISA Affiliate or to which Borrower or any ERISA Affiliate
contributes or has an obligation to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan years. 
  
 “Permitted Distributions” means, as of any date, the sum of
(a) $5,000,000, and (b) an amount equal to the sum of Parent’s Cash Available for Distribution for each fiscal quarter ending after the Closing Date through such date; provided that such amount shall not be less than the amount of
Restricted Payments required for Parent to maintain its status as a REIT. 
  
 “Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. 
  
 “Personal Property Collateral” means the personal property
of a Loan Party in which security interests are granted to Administrative Agent, for the benefit of the Lenders, under the Security Documents. 
  
 “Plans” means the plans and specifications for the Borrowing Base Properties, including existing or proposed Improvements, and all
modifications thereof and additions thereto that are included as part of the Plans in accordance with the terms of this Agreement. 
  
 “Pro Forma Financial Statements” means the pro forma financial statements of Parent and its Subsidiaries filed with the Form S-11
filed on behalf of Parent with the SEC. 
  
 “Pro Rata
Share” means, with respect to each Lender at any time, a fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the amount of the 

  

 18 

 
Commitment of such Lender at such time and the denominator of which is the amount of the Aggregate Commitments at such time; provided that if the
commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 9.02, then the Pro Rata Share of each Lender shall be determined based on the Pro Rata Share
of such Lender immediately prior to such termination and after giving effect to any subsequent assignments made pursuant to the terms hereof. The initial Pro Rata Share of each Lender is set forth opposite the name of such Lender on Schedule
2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable. 
  
 “Property Information” has the meaning specified in Section 4.02(a). 
  
 “Properties” means hotels, resorts, or other properties used for a substantially similar purpose by a Loan
Party. 
  
 “Qualified Manager” means a Manager or
a reputable and experienced professional management organization (a) which manages, together with its affiliates, hotel properties comparable to any relevant Borrowing Base Property and (b) approved by Administrative Agent, which approval shall not
have been unreasonably withheld or delayed. 
  
 “REAs” means each construction, operation, and reciprocal easement agreements or similar agreements (including any separate agreements or other agreements between a Loan Party and one or more other parties to any REA with
respect to such REA) affecting any Borrowing Base Property or portion thereof, and “REA” means any one of the REAs. 
  
 “Real Estate Collateral” means one or more Properties owned by Borrower that have otherwise been pledged or mortgaged to Administrative
Agent, for the benefit of the Lenders. 
  
 “Register” has the meaning specified in Section 11.06(c). 
  
 “REIT” means a “real estate investment trust” for purposes of the Code. 
  
 “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees,
agents and advisors of such Person and of such Person’s Affiliates. 
  
 “Release Date” means the earlier of the following two dates: (a) the date on which the Obligations have been paid in full and the Mortgages have been released; or (b) the date on which the Liens of
the Mortgages are fully and finally foreclosed or a conveyance by deed in lieu of such foreclosure is fully and finally effective and possession of the Borrowing Base Properties have been given to and accepted by the purchaser or Administrative
Agent free of occupancy and claims to occupancy by Borrower and their heirs, devisees, representatives, successors and assigns; provided that, if such payment, performance, release, foreclosure or conveyance is challenged, in bankruptcy proceedings
or otherwise, the Release Date shall be deemed not to have occurred until such challenge is validly released, dismissed with prejudice or otherwise barred by Law from further assertion. 
  
 “Rents” means all of the rents, revenue, income, profits, and proceeds derived and to be derived from the
Borrowing Base Properties or arising from the use or enjoyment of any portion thereof or from any Lease or Operating Lease, including but not limited to the proceeds from any negotiated lease termination or buyout of such Lease or Operating Lease,
liquidated damages following default under any such Lease or Operating Lease, all proceeds payable under any policy of insurance covering loss of rents resulting from untenantability caused by damage to any part of the Borrowing Base Properties, all
rights to recover monetary amounts from any tenant in bankruptcy including, without limitation, rights of 

  

 19 

 
recovery for use and occupancy and damage claims arising out of Lease or Operating Lease defaults, including rejections, under any applicable Debtor Relief
Law (hereinafter defined), together with any sums of money that may now or at any time hereafter be or become due and payable to any Loan Party by virtue of any and all royalties, overriding royalties, bonuses, delay rentals, and any other amount of
any kind or character arising under any and all present and all future oil, gas, mineral, and mining leases covering any Borrowing Base Property or any part thereof, and all proceeds and other amounts paid or owing to a Loan Party under or pursuant
to any and all contracts and bonds relating to the construction or renovation of any Borrowing Base Property. 
  
 “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the thirty (30) day notice
period has been waived. 
  
 “Request for Credit
Extension” means (a) with respect to a Borrowing, conversion, or continuation of Loans, a Loan Notice, and (b) with respect to an L/C Credit Extension, a Letter of Credit Application. 
  
 “Required Lenders” means, as of any date of determination,
Lenders having at least 66-2/3% of the Aggregate Commitments or, if the commitment of each Lender to make Loans and the obligation of L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 9.02, Lenders holding in
the aggregate at least 66-2/3% of the Total Outstandings (with the aggregate amount of each Lender’s risk participation and funded participation in L/C Obligations being deemed “held” by such Lender for purposes of this definition);
provided that the Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders. 
  
 “Responsible Officer” means the chief executive officer,
president, chief financial officer, treasurer or assistant treasurer of a Loan Party. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party. 
  
 “Restricted Payment” means any dividend or other distribution (whether in cash, securities or other
property) with respect to any Equity Interest of Borrower or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such Equity Interest, or on account of any return of capital to Borrower’s stockholders, partners or members (or the equivalent Person thereof). 
  
 “SEC” means the Securities and Exchange Commission, or any
Governmental Authority succeeding to any of its principal functions. 
  
 “Security Documents” means each of the following documents in form and substance acceptable to Administrative Agent: 
  
 (a) the Mortgages; 
  
 (b) Security Agreements and Assignments of Rights, executed by Borrower and the applicable Subsidiary Guarantors; 
  
 (c) Assignments of Leases and Rents, executed by Borrower or the applicable
Subsidiary Guarantors; 
  

 20 

 (d) financing statements to be filed with the appropriate state and/or county offices for the perfection
of a security interest in any of the Collateral or any other collateral or security for the Obligations; 
  
 (e) Environmental Indemnity Agreements, executed by Borrower and the applicable Subsidiary Guarantors; 
  
 (f) assignments of the liquor licenses used in connection with the operation
of the Borrowing Base Properties, executed by Borrower and the applicable Subsidiary Guarantors; 
  
 (g) assignments of all Operating Leases, Franchise Agreements, Management Agreements, and Material Agreements, executed by Borrower and the applicable
Subsidiary Guarantors; 
  
 (h) Assignments of Management
Agreement; 
  
 (i) estoppel letters, consents, comfort letters, or
other confirming agreements and/or non-disturbance agreements executed by (i) each Operating Lessee or other tenant under each Operating Lease, (ii) each Manager, (iii) each Franchisor, (iv) each Operating Lessee, and (v) such other parties to
Material Agreements as Administrative Agent may request; 
  
 (j)
opinions of counsels in form and substance acceptable to Administrative Agent; 
  
 (k) all other agreements, documents, and instruments securing the Obligations or any part thereof, as shall from time to time be executed and delivered by Borrower, Guarantors, any Manager, or any other Person in
favor of Administrative Agent; and 
  
 (l) all renewals,
extensions, and restatements of, and amendments and supplements to, any of the foregoing. 
  
 “Shareholders’ Equity” means, as of any date of determination, with respect to any Person, consolidated shareholders’ equity of such Person as of that date determined in accordance with
GAAP. 
  
 “Solvent” means, as to a Person, that
(a) the aggregate fair market value of its assets exceeds its liabilities, (b) it has sufficient cash flow to enable it to pay its liabilities as they mature, and (c) it does not have unreasonably small capital to conduct its businesses. 

 
 “Subsequent Lender” has the meaning specified in
Section 2.13(b). 
  
 “Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability company, or other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other
governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise Controlled, directly, or indirectly through one or
more intermediaries, or both, by such Person. Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of Parent. 
  
 “Subsidiary Guarantor” means each Subsidiary that is party
to the Subsidiary Guaranty. 
  
 “Subsidiary
Guaranty” means the Guaranty executed by each Subsidiary of Borrower required to execute such Guaranty pursuant to Section 4.06 in favor of Administrative Agent on behalf of the Lenders, substantially in the form of Exhibit
E-2. 
  

 21 

 “Survey” means a survey prepared in accordance with Exhibit “F”.

  
 “Swap Contract” means (a) any and all rate
swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or
forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to
any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives
Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or
liabilities under any Master Agreement. 
  
 “Swap
Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap
Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such
Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender). 
  
 “Synthetic Lease Obligation” means the monetary obligation
of a Person under (a) a so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but which, upon the
insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment). 
  
 “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed
by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 
  
 “Threshold Amount” means $10,000,000. 
  
 “Title Insurance” means the loan policy or policies of title insurance issued to Administrative Agent for the benefit of Lenders by the
Title Insurer, in an amount equal to the maximum principal amount of the Loan, insuring the validity and priority of the Mortgages encumbering the Borrowing Base Properties and Improvements described in the Mortgages for the benefit of
Administrative Agent and Lenders. 
  
 “Title
Insurer” means Lawyers Title Company. 
  
 “Total
Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C Obligations. 
  
 “Type” means, with respect to a Loan, its character as a Base Rate Loan or a Eurodollar Rate Loan. 
  
 “UCC” means the Uniform Commercial Code as in effect in the
State of Texas. 
  

 22 

 “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit
liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code for the applicable plan
year. 
  
 “United States” and
“U.S.” mean the United States of America. 
  
 “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i). 
  
 1.02 Other Interpretive Provisions. With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such
other Loan Document: 
  
 (a) The definitions of
terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine, and neuter forms. The words “include,”
“includes,” and “including” shall be deemed to be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word
“shall.” Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument, or other document (including any Organization Document) shall be construed as referring to such agreement, instrument
or other document as from time to time amended, supplemented, or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any
Person shall be construed to include such Person’s successors and assigns, (iii) the words “herein,” “hereof,” and “hereunder,” and words of similar import when used in any Loan Document, shall
be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits, and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, the Loan Document in which such references appear unless otherwise specified, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such
law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 
  
 (b) In the computation of periods of time from a specified
date to a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word
“through” means “to and including.” 
  
 (c) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document. 
  
 1.03 Accounting Terms. (a) Generally. All accounting terms not
specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity
with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the Pro Forma Financial Statements, except as otherwise specifically prescribed herein. 
  

 23 

 (b) Changes in GAAP. If at any time any change in GAAP would affect the computation of any
financial ratio or requirement set forth in any Loan Document, and either Borrower or the Required Lenders shall so request, Administrative Agent, the Lenders and Borrower shall negotiate in good faith to amend such ratio or requirement to preserve
the original intent thereof in light of such change in GAAP (subject to the reasonable approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with
GAAP prior to such change therein and (ii) Borrower shall provide to Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation
between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. 
  
 1.04 Rounding. Any financial ratios required to be maintained by Borrower pursuant to this Agreement shall be calculated by dividing the
appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest
number). 
  
 1.05 Times of Day. Unless otherwise specified,
all references herein to times of day shall be references to Central time (daylight or standard, as applicable). 
  
 1.06 Letter of Credit Amounts. Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated
amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases
in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such
time. 
  
 ARTICLE II. 
 THE COMMITMENTS AND CREDIT EXTENSIONS 
  
 2.01 Loans. Subject to the terms and conditions set forth herein, each Lender severally agrees to make loans (each such loan, a
“Loan”) to Borrower from time to time, on any Business Day during the Availability Period, in an aggregate amount not to exceed at any time outstanding the amount of such Lender’s Commitment; provided, however,
that after giving effect to any Borrowing, (a) the Total Outstandings shall not exceed the lesser of (i) the Aggregate Commitments and (ii) the Borrowing Base, and (b) the aggregate Outstanding Amount of the Loans of any Lender, plus such
Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations shall not exceed such Lender’s Commitment. Within the limits of each Lender’s Commitment, and subject to the other terms and conditions hereof, Borrower may
borrow under this Section 2.01, prepay under Section 2.04, and reborrow under this Section 2.01. Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. 
  
 2.02 Borrowings, Conversions, and Continuations of Loans. 

 
 (a) Each Borrowing, each conversion of Loans from one Type to the other,
and each continuation of Eurodollar Rate Loans shall be made upon Borrower’s irrevocable notice to Administrative Agent, which may be given by telephone. Each such notice must be received by Administrative Agent not later than 11:00 a.m. (i)
three (3) Business Days prior to the requested date of any Borrowing of, conversion to, or continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base Rate Loans, and (ii) on the requested date of any Borrowing of
Base Rate Loans. Each telephonic notice by Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to Administrative Agent of a written Loan Notice, appropriately completed and signed by a 

  

 24 

 
Responsible Officer of Borrower. Each Borrowing of, conversion to, or continuation of Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a
whole multiple of $1,000,000 in excess thereof. Except as provided in Sections 2.03(c), each Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof. Each Loan
Notice (whether telephonic or written) shall specify (i) whether Borrower is requesting a Borrowing, a conversion of Loans from one Type to the other, or a continuation of Eurodollar Rate Loans, (ii) the requested date of the Borrowing, conversion,
or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted, or continued, (iv) the Type of Loans to be borrowed or to which existing Loans are to be converted, and (v) if
applicable, the duration of the Interest Period with respect thereto. If Borrower fails to specify a Type of Loan in a Loan Notice or if Borrower fails to give a timely notice requesting a conversion or continuation, then the applicable Loans shall
be made as, or converted to, Base Rate Loans. Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Eurodollar Rate Loans. If Borrower requests a
Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one (1) month. 
  
 (b) Following receipt of a Loan Notice, Administrative Agent shall promptly
notify each Lender of the amount of its Pro Rata Share of the applicable Loans, and if no timely notice of a conversion or continuation is provided by Borrower, Administrative Agent shall notify each Lender of the details of any automatic conversion
to Base Rate Loans described in the preceding subsection. In the case of a Borrowing, each Lender shall make the amount of its Loan available to Administrative Agent in immediately available funds at Administrative Agent’s Office not later than
1:00 p.m. on the Business Day specified in the applicable Loan Notice. Upon satisfaction of the applicable conditions set forth in Section 5.02 (and, if such Borrowing is the initial Credit Extension, Section 5.01), Administrative
Agent shall make all funds so received available to Borrower in like funds as received by Administrative Agent either by (i) crediting the account of Borrower on the books of Bank of America with the amount of such funds or (ii) wire transfer of
such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) Administrative Agent by Borrower; provided, however, that if, on the date the Loan Notice with respect to such Borrowing is given by
Borrower, there are L/C Borrowings outstanding, then the proceeds of such Borrowing, first, shall be applied to the payment in full of any such L/C Borrowings, and second, shall be made available to Borrower as provided above.

  
 (c) Except as otherwise provided herein, the continuation or
conversion of a Eurodollar Rate Loan may become effective only on the last day of an Interest Period for such Eurodollar Rate Loan. During the existence of a Default, no Loans may be requested as, converted to, or continued as Eurodollar Rate Loans
without the consent of the Required Lenders. 
  
 (d)
Administrative Agent shall promptly (i) provide Borrower with indicative rates for Loans that may be continued as or converted to Eurodollar Rate Loans, upon Borrower’s request, and (ii) notify Borrower and the Lenders of the interest rate
applicable to any Interest Period for Eurodollar Rate Loans upon determination of such interest rate. At any time that Base Rate Loans are outstanding, Administrative Agent shall notify Borrower and the Lenders of any change in Bank of
America’s prime rate used in determining the Base Rate promptly following the public announcement of such change. 
  
 (e) After giving effect to all Borrowings, all conversions of Loans from one Type to the other, and all continuations of Loans as the same Type, there
shall not be more than ten (10) Interest Periods in effect with respect to Loans. 
  

 25 

 2.03 Letters of Credit. 
  
 (a) The Letter of Credit Commitment. 
  
 (i) Subject to the terms and conditions set forth herein, (A) L/C Issuer agrees, in reliance upon the
agreements of the Lenders set forth in this Section 2.03, (1) from time to time on any Business Day during the period from the Closing Date until the Letter of Credit Expiration Date, to issue Letters of Credit for the account of Borrower,
and to amend or extend Letters of Credit previously issued by it, in accordance with Section 2.03(b), and (2) to honor drawings under the Letters of Credit; and (B) the Lenders severally agree to participate in Letters of Credit issued for
the account of Borrower and any drawings thereunder; provided that after giving effect to any L/C Credit Extension with respect to any Letter of Credit, (x) the Total Outstandings shall not exceed the Aggregate Commitments, (y) the aggregate
Outstanding Amount of the Loans of any Lender, plus such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations shall not exceed such Lender’s Commitment, and (z) the Outstanding Amount of the L/C Obligations shall
not exceed the Letter of Credit Sublimit. Each request by Borrower for the issuance or amendment of a Letter of Credit shall be deemed to be a representation by Borrower that the L/C Credit Extension so requested complies with the conditions set
forth in the proviso to the preceding sentence. Within the foregoing limits, and subject to the terms and conditions hereof, Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly Borrower may, during the
foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed. 
  
 (ii) L/C Issuer shall not issue any Letter of Credit, if: 
  
 (A) subject to Section 2.03(b)(iii), the expiry date of such requested Letter of Credit would occur
more than twelve (12) months after the date of issuance or last extension, unless the Required Lenders have approved such expiry date; or 
  
 (B) the expiry date of such requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless all the Lenders have
approved such expiry date. 
  
 (iii) L/C Issuer
shall not be under any obligation to issue any Letter of Credit if: 
  
 (A) any order, judgment, or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain L/C Issuer from issuing such Letter of Credit, or any Law applicable to L/C Issuer or any
request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over L/C Issuer shall prohibit, or request that L/C Issuer refrain from, the issuance of letters of credit generally or such Letter of
Credit in particular or shall impose upon L/C Issuer with respect to such Letter of Credit any restriction, reserve, or capital requirement (for which L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon L/C Issuer any unreimbursed loss, cost, or expense which was not applicable on the Closing Date and which L/C Issuer in good faith deems material to it; 
  
 (B) the issuance of such Letter of Credit would violate one or more policies of L/C Issuer; 
  

 26 

 (C) except as otherwise agreed by Administrative Agent and L/C Issuer, such Letter of
Credit is in an initial stated amount less than $100,000, in the case of a commercial Letter of Credit, or $500,000, in the case of a standby Letter of Credit; 
  

(D) such Letter of Credit is to be denominated in a currency other than Dollars; and 
  
 (E) a default of any Lender’s obligations to fund under
Section 2.03(c) exists or any Lender is at such time a Defaulting Lender hereunder, unless L/C Issuer has entered into satisfactory arrangements with Borrower or such Lender to eliminate L/C Issuer’s risk with respect to such Lender.

  
 (iv) L/C Issuer shall not amend any Letter of
Credit if L/C Issuer would not be permitted at such time to issue such Letter of Credit in its amended form under the terms hereof. 
  
 (v) L/C Issuer shall be under no obligation to amend any Letter of Credit if (A) L/C Issuer would have no obligation at such time to issue
such Letter of Credit in its amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not accept the proposed amendment to such Letter of Credit. 
  
 (vi) L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit issued by it and
the documents associated therewith, and L/C Issuer shall have all of the benefits and immunities (A) provided to Administrative Agent in Article X with respect to any acts taken or omissions suffered by L/C Issuer in connection with Letters
of Credit issued by it or proposed to be issued by it and Issuer Documents pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used in Article X included L/C Issuer with respect to such acts or
omissions, and (B) as additionally provided herein with respect to L/C Issuer. 
  
 (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of Credit. 
  
 (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the request of Borrower delivered to L/C Issuer (with a
copy to Administrative Agent) in the form of a Letter of Credit Application, appropriately completed and signed by a Responsible Officer of Borrower. Such Letter of Credit Application must be received by L/C Issuer and Administrative Agent not later
than 11:00 a.m. at least five (5) Business Days (or such later date and time as Administrative Agent and L/C Issuer may agree in a particular instance in their sole discretion) prior to the proposed issuance date or date of amendment, as the case
may be. In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which
shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any
certificate to be presented by such beneficiary in case of any drawing thereunder; and (G) such other matters as L/C Issuer may require. In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application
shall specify in form and detail satisfactory to L/C Issuer (A) the Letter of Credit to be amended; (B) the proposed date of amendment thereof (which shall be a Business Day); (C) the nature of the proposed amendment; and (D) such other matters as
L/C Issuer may require. Additionally, Borrower shall furnish to L/C Issuer and Administrative Agent such other documents and information pertaining to such requested Letter of Credit 

  

 27 

 
issuance or amendment, including any Issuer Documents, as L/C Issuer or Administrative Agent may require. 
  
 (ii) Promptly after receipt of any Letter of Credit
Application, L/C Issuer will confirm with Administrative Agent (by telephone or in writing) that Administrative Agent has received a copy of such Letter of Credit Application from Borrower and, if not, L/C Issuer will provide Administrative Agent
with a copy thereof. Unless L/C Issuer has received written notice from any Lender, Administrative Agent, or any Loan Party, at least one (1) Business Day prior to the requested date of issuance or amendment of the applicable Letter of Credit, that
one or more applicable conditions contained in Article V shall not then be satisfied, then, subject to the terms and conditions hereof, L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of Borrower or enter
into the applicable amendment, as the case may be, in each case in accordance with L/C Issuer’s usual and customary business practices. Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from L/C Issuer a risk participation in such Letter of Credit in an amount equal to the product of such Lender’s Pro Rata Share times the amount of such Letter of Credit. 
  
 (iii) If Borrower so requests in any applicable Letter of
Credit Application, L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that any such
Auto-Extension Letter of Credit must permit L/C Issuer to prevent any such extension at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not
later than a day (the “Non-Extension Notice Date”) in each such twelve-month period to be agreed upon at the time such Letter of Credit is issued. Unless otherwise directed by L/C Issuer, Borrower shall not be required to make a
specific request to L/C Issuer for any such extension. Once an Auto-Extension Letter of Credit has been issued, the Lenders shall be deemed to have authorized (but may not require) L/C Issuer to permit the extension of such Letter of Credit at any
time to an expiry date not later than the Letter of Credit Expiration Date; provided, however, that L/C Issuer shall not permit any such extension if (A) L/C Issuer has determined that it would not be permitted, or would have no
obligation, at such time to issue such Letter of Credit in its revised form (as extended) under the terms hereof (by reason of the provisions of clause (ii) or (iii) of Section 2.03(a) or otherwise), or (B) it has received notice (which may
be by telephone or in writing) on or before the day that is five (5) Business Days before the Non-Extension Notice Date (1) from Administrative Agent that either (x) the Required Lenders or (y) Borrower have elected not to permit such extension or
(2) from Administrative Agent, any Lender or Borrower that one or more of the applicable conditions specified in Section 5.02 is not then satisfied, and in each such case directing L/C Issuer not to permit such extension. 
  
 (iv) If any Letter of Credit contains provisions providing
for automatic reinstatement of the stated amount after any drawing thereunder, (A) unless otherwise directed by L/C Issuer, Borrower shall not be required to make a specific request to L/C Issuer to permit such reinstatement, and (B) Administrative
Agent and the Lenders hereby authorize and direct L/C Issuer to permit such automatic reinstatement, whether or not a Default then exists, unless L/C Issuer has received a notice (which may be by telephone or in writing) on or before the day that is
two (2) Business Days before the reinstatement date from Administrative Agent, Required Lenders, or any Loan Party that one or more of the applicable conditions specified in Section 5.02 is not then satisfied and directing L/C Issuer to cease
permitting such automatic reinstatement of such Letter of Credit. 
  

 28 

 (v) Promptly after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof, L/C Issuer will also deliver to Borrower and Administrative Agent a true and complete copy of such Letter of Credit or amendment and, upon request from any Lender,
Administrative Agent will send a copy of any such Letter of Credit or any such amendment to a Letter of Credit to each Lender. 
  
 (c) Drawings and Reimbursements; Funding of Participations. 
  
 (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under such Letter
of Credit, L/C Issuer shall notify Borrower and Administrative Agent thereof. So long as L/C Issuer has provided notice to Borrower pursuant to the preceding sentence within a reasonable time, not later than 11:00 a.m. on the date of any payment by
L/C Issuer under a Letter of Credit (each such date, an “Honor Date”), Borrower shall reimburse L/C Issuer through Administrative Agent in an amount equal to the amount of such drawing. If Borrower fails to so reimburse L/C Issuer
by such time, Administrative Agent shall promptly notify each Lender of the Honor Date, the amount of the unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such Lender’s Pro Rata Share thereof. In such event,
Borrower shall be deemed to have requested a Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in Section 2.02 for the principal
amount of Base Rate Loans, but subject to the amount of the unutilized portion of the Aggregate Commitments and the conditions set forth in Section 5.02 (other than the delivery of a Loan Notice). Any notice given by L/C Issuer or
Administrative Agent pursuant to this Section 2.03(c)(i) may be given by telephone if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of
such notice. 
  
 (ii) Each Lender shall upon any
notice pursuant to Section 2.03(c)(i) make funds available to Administrative Agent for the account of L/C Issuer at Administrative Agent’s Office in an amount equal to its Pro Rata Share of the Unreimbursed Amount not later than 1:00
p.m. on the Business Day specified in such notice by Administrative Agent, whereupon, subject to the provisions of Section 2.03(c)(iii), each Lender that so makes funds available shall be deemed to have made a Base Rate Loan to Borrower in
such amount. Administrative Agent shall remit the funds so received to L/C Issuer. 
  
 (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a Borrowing of Base Rate Loans because the conditions set
forth in Section 5.02 cannot be satisfied or for any other reason, Borrower shall be deemed to have incurred from L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due
and payable on demand (together with interest) and shall bear interest at the Default Rate. In such event, each Lender’s payment to Administrative Agent for the account of L/C Issuer pursuant to Section 2.03(c)(ii) shall be deemed
payment in respect of its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation under this Section 2.03. 
  
 (iv) Until each Lender funds its Loan or L/C Advance
pursuant to this Section 2.03(c) to reimburse L/C Issuer for any amount drawn under any Letter of Credit, interest in respect of such Lender’s Pro Rata Share of such amount shall be solely for the account of L/C Issuer. 
  
 (v) Each Lender’s obligation to make Loans or L/C
Advances to reimburse L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c), shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any 

  

 29 

 
setoff, counterclaim, recoupment, defense or other right which such Lender may have against L/C Issuer, Borrower or any other Person for any reason
whatsoever; (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation to make Loans pursuant
to this Section 2.03(c) is subject to the conditions set forth in Section 5.02 (other than delivery by Borrower of a Loan Notice). No such making of an L/C Advance shall relieve or otherwise impair the obligation of Borrower to
reimburse L/C Issuer for the amount of any payment made by L/C Issuer under any Letter of Credit, together with interest as provided herein. 
  
 (vi) If any Lender fails to make available to Administrative Agent for the account of L/C Issuer any amount required to be paid by such
Lender pursuant to the foregoing provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii), L/C Issuer shall be entitled to recover from such Lender (acting through Administrative Agent), on demand, such amount
with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to L/C Issuer at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by L/C
Issuer in accordance with banking industry rules on interbank compensation. A certificate of L/C Issuer submitted to any Lender (through Administrative Agent) with respect to any amounts owing under this Section 2.03(c)(vi) shall be
conclusive absent manifest error. 
  
 (d) Repayment of
Participations. 
  
 (i) At any time after L/C
Issuer has made a payment under any Letter of Credit and has received from any Lender such Lender’s L/C Advance in respect of such payment in accordance with Section 2.03(c), if Administrative Agent receives for the account of L/C Issuer
any payment in respect of the related Unreimbursed Amount or interest thereon (whether directly from Borrower or otherwise, including proceeds of Cash Collateral applied thereto by Administrative Agent), Administrative Agent will distribute to such
Lender its Pro Rata Share thereof (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s L/C Advance was outstanding) in the same funds as those received by Administrative Agent.

  
 (ii) If any payment received by
Administrative Agent for the account of L/C Issuer pursuant to Section 2.03(c)(i) is required to be returned under any of the circumstances described in Section 11.05 (including pursuant to any settlement entered into by L/C Issuer in
its discretion), each Lender shall pay to Administrative Agent for the account of L/C Issuer its Pro Rata Share thereof on demand of Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned by such
Lender, at a rate per annum equal to the Federal Funds Rate from time to time in effect. The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement. 
  
 (e) Obligations Absolute. The obligation of Borrower to
reimburse L/C Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances,
including the following: 
  
 (i) any lack of
validity or enforceability of such Letter of Credit, this Agreement, or any other Loan Document; 
  
 (ii) the existence of any claim, counterclaim, setoff, defense, or other right that Borrower or any Subsidiary may have at any time
against any beneficiary or any transferee of 

  

 30 

 
such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), L/C Issuer or any other Person, whether in
connection with this Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction; 
  
 (iii) any draft, demand, certificate, or other document presented under such Letter of Credit proving to be
forged, fraudulent, invalid, or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such
Letter of Credit; 
  
 (iv) any payment by L/C
Issuer under such Letter of Credit against presentation of a draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any payment made by L/C Issuer under such Letter of Credit to any Person purporting to be a
trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver, or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with
any proceeding under any Debtor Relief Law; or 
  
 (v) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a discharge of, Borrower or any Subsidiary.

  
 Borrower shall promptly examine a copy of each Letter of
Credit and each amendment thereto that is delivered to it and, in the event of any claim of noncompliance with Borrower’s instructions or other irregularity, Borrower will immediately notify L/C Issuer. Borrower shall be conclusively deemed to
have waived any such claim against L/C Issuer and its correspondents unless such notice is given as aforesaid. 
  
 (f) Role of L/C Issuer. Each Lender and Borrower agree that, in paying any drawing under a Letter of Credit, L/C Issuer shall not have any
responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person
executing or delivering any such document. None of L/C Issuer, Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of L/C Issuer shall be liable to any Lender for (i) any action taken or
omitted in connection herewith at the request or with the approval of the Lenders or the Required Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Issuer Document. Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any
Letter of Credit; provided, however, that this assumption is not intended to, and shall not, preclude Borrower’s pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other
agreement. None of L/C Issuer, Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of L/C Issuer shall be liable or responsible for any of the matters described in clauses (i) through (v) of
Section 2.03(e); provided, however, that anything in such clauses to the contrary notwithstanding, Borrower may have a claim against L/C Issuer, and L/C Issuer may be liable to Borrower, to the extent, but only to the extent, of
any direct, as opposed to consequential or exemplary, damages suffered by Borrower which Borrower proves were caused by L/C Issuer’s willful misconduct or gross negligence or L/C Issuer’s willful failure to pay under any Letter of Credit
after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing, L/C Issuer may accept documents that
appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and L/C Issuer shall not be responsible for the validity or 

  

 31 

 
sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or
proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason. 
  
 (g) Cash Collateral. Upon the request of Administrative Agent, if, as of the Letter of Credit Expiration Date, any L/C Obligation for any reason
remains outstanding, then Borrower shall immediately Cash Collateralize the then Outstanding Amount of all L/C Obligations. Sections 2.04 and 9.02(c) set forth certain additional requirements to deliver Cash Collateral hereunder. For
purposes of this Section 2.03, Section 2.04, and Section 9.02(c), “Cash Collateralize” means to pledge and deposit with or deliver to Administrative Agent, for the benefit of L/C Issuer and the Lenders, as
collateral for the L/C Obligations, cash or deposit account balances pursuant to documentation in form and substance satisfactory to Administrative Agent and L/C Issuer (which documents are hereby consented to by the Lenders). Derivatives of such
term have corresponding meanings. Borrower hereby grants to Administrative Agent, for the benefit of L/C Issuer and the Lenders, a security interest in all such cash, deposit accounts and all balances therein and all proceeds of the foregoing. Cash
Collateral shall be maintained in blocked, non-interest bearing deposit accounts at Bank of America. 
  
 (h) Applicability of ISP and UCP. Unless otherwise expressly agreed by L/C Issuer and Borrower when a Letter of Credit is issued (including
any such agreement applicable to an Existing Letter of Credit), (i) the rules of the ISP shall apply to each standby Letter of Credit, and (ii) the rules of the Uniform Customs and Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce at the time of issuance shall apply to each commercial Letter of Credit. 
  
 (i) Letter of Credit Fees. Borrower shall pay to Administrative Agent for the account of each Lender in accordance with its Pro Rata Share a Letter
of Credit fee (the “Letter of Credit Fee”) equal to the Applicable Rate times the daily amount available to be drawn under such Letter of Credit. For purposes of computing the daily amount available to be drawn under any
Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06. Letter of Credit Fees shall be (i) computed on a quarterly basis in arrears and (ii) due and payable on the first Business Day after
the end of each March, June, September, and December, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand. If there is any change in the
Applicable Rate during any quarter, the daily amount available to be drawn under each Letter of Credit shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such Applicable Rate was in effect.
Notwithstanding anything to the contrary contained herein, upon the request of the Required Lenders, while any Event of Default exists, all Letter of Credit Fees shall accrue at the Default Rate. 
  
 (j) Fronting Fee and Documentary and Processing Charges Payable to L/C
Issuer. Borrower shall pay directly to L/C Issuer for Letters of Credit issued after the date hereof for its own account, in Dollars, a fronting fee (i) with respect to each commercial Letter of Credit, at the rate specified in the Fee
Letter, computed on the Dollar amount of such Letter of Credit, and payable upon the issuance thereof, (ii) with respect to any amendment of a commercial Letter of Credit increasing the amount of such Letter of Credit, at a rate separately agreed
between Borrower and L/C Issuer, computed on the Dollar Equivalent of the amount of such increase, and payable upon the effectiveness of such amendment, and (iii) with respect to each standby Letter of Credit, at the rate per annum specified in the
Fee Letter, computed on the daily amount available to be drawn under such Letter of Credit on a quarterly basis in arrears, and due and payable on the first Business Day after the end of each March, June, September, and December, commencing with the
first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand. For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such
Letter of Credit shall be determined in accordance with Section 1.06. In addition, Borrower shall pay directly to L/C Issuer for its own 

  

 32 

 
account the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of L/C Issuer relating to letters of
credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable on demand and are nonrefundable. 
  
 (k) Conflict with Issuer Documents. In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof
shall control. 
  
 2.04 Prepayments. 
  
 (a) Borrower may, upon notice to Administrative Agent, at any time or from
time to time voluntarily prepay Loans in whole or in part without premium or penalty; provided that (i) such notice must be received by Administrative Agent not later than 11:00 a.m. (A) three (3) Business Days prior to any date of prepayment
of Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof; and (iii) any prepayment of
Base Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding. Each such notice shall specify the date and amount of such
prepayment and the Type(s) of Loans to be prepaid. Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender’s Pro Rata Share of such prepayment. If such notice is given by
Borrower, Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein. Any prepayment of a Eurodollar Rate Loan shall be accompanied by all accrued interest on the amount
prepaid, together with any additional amounts required pursuant to Section 3.05. Each such prepayment shall be applied to the Loans of the Lenders in accordance with their respective Pro Rata Shares. 
  
 (b) If for any reason the Total Outstandings at any time exceed the lesser of
(i) the Aggregate Commitments then in effect, and (ii) the Borrowing Base, Borrower shall within one (1) Business Day prepay Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount equal to such excess; provided,
however, that Borrower shall not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.04(b) unless after the prepayment in full of the Loans the Total Outstandings exceed the lesser of (i) the Aggregate
Commitments then in effect, and (ii) the Borrowing Base. 
  
 2.05 Termination or Reduction of Commitments. Borrower may, upon notice to Administrative Agent, terminate the Aggregate Commitments, or from time to time permanently reduce the Aggregate Commitments; provided that (i) any
such notice shall be received by Administrative Agent not later than 11:00 a.m. two (2) Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $10,000,000 or any whole multiple
of $1,000,000 in excess thereof, (iii) Borrower shall not terminate or reduce the Aggregate Commitments if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Outstandings would exceed the Aggregate Commitments, and
(iv) if, after giving effect to any reduction of the Aggregate Commitments, the Letter of Credit Sublimit exceeds the amount of the Aggregate Commitments, such Sublimit shall be automatically reduced by the amount of such excess. Administrative
Agent will promptly notify the Lenders of any such notice of termination or reduction of the Aggregate Commitments. Any reduction of the Aggregate Commitments shall be applied to the Commitment of each Lender according to its Pro Rata Share. All
fees accrued until the effective date of any termination of the Aggregate Commitments shall be paid on the effective date of such termination. 
  
 2.06 Repayment of Loans. Borrower shall repay to the Lenders on the Maturity Date the aggregate principal amount of Loans outstanding on such date.

  

 33 

 2.07 Interest. 
  
 (a) Subject to the provisions of Section 2.07(b), (i) each Eurodollar Rate Loan shall bear interest on the
outstanding principal amount thereof for each Interest Period at a rate per annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate; and (ii) each Base Rate Loan shall bear interest on the outstanding principal
amount thereof from the applicable borrowing or conversion date at a rate per annum equal to the Base Rate. 
  
 (b) (i) If any amount of principal of any Loan is not paid when due, whether at stated maturity, by acceleration or otherwise, such amount shall
thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws. 
  
 (ii) If any amount (other than principal of any Loan) payable by Borrower under any Loan Document is not paid when due, whether at stated
maturity, by acceleration, or otherwise, then upon the request of the Required Lenders, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by
applicable Laws. 
  
 (iii) Upon the request of
the Required Lenders, while any Event of Default exists, Borrower shall pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest
extent permitted by applicable Laws. 
  
 (iv)
Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand. 
  
 (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified
herein. Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law. 
  
 2.08 Fees. In addition to certain fees described in Sections
2.03(i) and (j): 
  
 (a) Unused Fee. Borrower
shall pay to Administrative Agent for the account of each Lender in accordance with its Pro Rata Share, an unused fee of (i) one-half of one percent (0.50%) times the actual daily amount by which the Aggregate Commitments exceed the Total
Outstandings on each day that the Total Outstandings are less than or equal to thirty-three and one-third of one percent (33-1/3%) of the actual daily amount of the Aggregate Commitments, (ii) three eighths of one percent (0.375%) times the
actual daily amount by which the Aggregate Commitments exceed the Total Outstandings on each day that the Total Outstandings are greater than thirty-three and one-third of one percent (33-1/3%) but less than or equal to sixty-six and two-thirds of
one percent (66-2/3%) of the actual daily amount of the Aggregate Commitments, and (iii) one-quarter of one percent (0.25%) times the actual daily amount by which the Aggregate Commitments exceed the Total Outstandings on each day that the
Total Outstandings exceed sixty-six and two-thirds of one percent (66-2/3%) of the actual daily amount of the Aggregate Commitments. The unused fee shall be due and payable quarterly in arrears on the first Business Day after the end of each March,
June, September, and December, commencing with the first such date to occur after the Closing Date, and on the Maturity Date. The unused fee shall be calculated quarterly in arrears. The unused fee shall accrue at all times, including at any time
during which one or more of the conditions in Article V is not met. 
  

 34 

 (b) Other Fees. Borrower shall pay to Arrangers and Administrative Agent for their own
respective accounts fees in the amounts and at the times specified in the Fee Letter. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever. 
  
 2.09 Computation of Interest and Fees. All computations of fees and interest shall be made on the basis of a 360-day
year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a
Loan, or any portion thereof, for the day on which the Loan or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.11(a), bear interest for one day. Each
determination by Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error. 
  
 2.10 Evidence of Debt. 
  
 (a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by Administrative Agent
in the ordinary course of business. The accounts or records maintained by Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to Borrower and the interest and
payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of Borrower hereunder to pay any amount owing with respect to the Obligations. In the event of any conflict between the
accounts and records maintained by any Lender and the accounts and records of Administrative Agent in respect of such matters, the accounts and records of Administrative Agent shall control in the absence of manifest error. Upon the request of any
Lender made through Administrative Agent, Borrower shall execute and deliver to such Lender (through Administrative Agent) a Note, which shall evidence such Lender’s Loans in addition to such accounts or records. Each Lender may attach
schedules to its Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto. 
  
 (b) In addition to the accounts and records referred to in Section 2.10(a), each Lender and Administrative Agent shall maintain in accordance with
its usual practice accounts or records evidencing the purchases and sales by such Lender of participations in Letters of Credit. In the event of any conflict between the accounts and records maintained by Administrative Agent and the accounts and
records of any Lender in respect of such matters, the accounts and records of Administrative Agent shall control in the absence of manifest error. 
  
 2.11 Payments Generally; Administrative Agent’s Clawback. 
  
 (a) General. All payments to be made by Borrower shall be made without condition or deduction for any counterclaim,
defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments by Borrower hereunder shall be made to Administrative Agent, for the account of the respective Lenders to which such payment is owed, at Administrative
Agent’s Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date specified herein. Administrative Agent will promptly distribute to each Lender its Pro Rata Share (or other applicable share as provided herein)
of such payment in like funds as received by wire transfer to such Lender’s Lending Office. All payments received by Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest
or fee shall continue to accrue. If any payment to be made by Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest
or fees, as the case may be. 
  

 35 

 (b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless Administrative Agent shall
have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to Administrative Agent such Lender’s share of such Borrowing, Administrative Agent may assume that such Lender has made
such share available on such date in accordance with Section 2.02 and may, in reliance upon such assumption, make available to Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable
Borrowing available to Administrative Agent, then the applicable Lender and Borrower severally agree to pay to Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from
and including the date such amount is made available to Borrower to but excluding the date of payment to Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater of the Federal Funds Rate and a rate determined by
Administrative Agent in accordance with banking industry rules on interbank compensation and (B) in the case of a payment to be made by Borrower, the interest rate applicable to Base Rate Loans. If Borrower and such Lender shall pay such interest to
Administrative Agent for the same or an overlapping period, Administrative Agent shall promptly remit to Borrower the amount of such interest paid by Borrower for such period. If such Lender pays its share of the applicable Borrowing to
Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included in such Borrowing. Any payment by Borrower shall be without prejudice to any claim Borrower may have against a Lender that shall have failed to make such
payment to Administrative Agent. 
  
 (ii) Payments by Borrower;
Presumptions by Administrative Agent. Unless Administrative Agent shall have received notice from Borrower prior to the date on which any payment is due to Administrative Agent for the account of the Lenders or L/C Issuer hereunder that Borrower
will not make such payment, Administrative Agent may assume that Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or L/C Issuer, as the case may be, the amount
due. In such event, if Borrower has not in fact made such payment, then each of the Lenders or L/C Issuer, as the case may be, severally agrees to repay to Administrative Agent forthwith on demand the amount so distributed to such Lender or L/C
Issuer, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to Administrative Agent, at the greater of the Federal Funds Rate and a rate
determined by Administrative Agent in accordance with banking industry rules on interbank compensation. 
  
 A notice of Administrative Agent to any Lender or Borrower with respect to any amount owing under this Section 2.11(b) shall be conclusive, absent
manifest error. 
  
 (c) Failure to Satisfy Conditions
Precedent. If any Lender makes available to Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to Borrower by Administrative
Agent because the conditions to the applicable Credit Extension set forth in Article V are not satisfied or waived in accordance with the terms hereof, Administrative Agent shall return such funds (in like funds as received from such Lender)
to such Lender, without interest. 
  
 (d) Obligations of
Lenders Several. The obligations of the Lenders hereunder to make Loans, to fund participations in Letters of Credit, and to make payments pursuant to Section 11.04(c) are several and not joint. The failure of any Lender to make any Loan,
to fund any such participation or to make any payment under Section 11.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the
failure of any other Lender to so make its Loan, to purchase its participation or to make its payment under Section 11.04(c). 
  

 36 

 (e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain the funds for
any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner. 
  
 2.12 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of setoff or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of the Loans made by it, or the participations in L/C Obligations held by it resulting in such Lender’s receiving payment of a proportion of the aggregate amount of
such Loans or participations and accrued interest thereon greater than its prorata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify Administrative Agent of such fact, and (b) purchase
(for cash at face value) participations in the Loans and subparticipations in L/C Obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably
in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them, provided that: 
  
 (i) if any such participations or subparticipations are purchased and all or any portion of the payment giving rise thereto is recovered,
such participations or subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and 
  
 (ii) the provisions of this Section 2.12 shall not be construed to apply to (A) any payment made by Borrower pursuant to and in
accordance with the express terms of this Agreement or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or subparticipations in L/C Obligations to any assignee or participant,
other than to Borrower or any Subsidiary thereof (as to which the provisions of this Section 2.12 shall apply). 
  
 Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation
pursuant to the foregoing arrangements may exercise against Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of Borrower in the amount of such participation. 

 
 2.13 Lenders; Increase in Aggregate Commitments. 
  
 (a) The Lenders on the Closing Date shall be the Lenders set forth on
Schedule 2.01 on the Closing Date. 
  
 (b) After the
Closing Date, Administrative Agent may, from time to time at the request of Borrower, increase the Aggregate Commitments by (i) admitting additional Lenders hereunder (each a “Subsequent Lender”), or (ii) increasing the Commitment
of any Lender (each an “Increasing Lender”), subject to the following conditions: 
  
 (A) each Subsequent Lender is an Eligible Assignee; 
  
 (B) Borrower, to the extent requested by Administrative Agent, executes (I) a new Note payable to the order
of a Subsequent Lender, or (II) a replacement Note payable to the order of an Increasing Lender so long as the replaced Note is concurrently returned to Borrower or an affidavit of lost note or similar document is delivered to Borrower; 

 
 (C) each Subsequent Lender becomes a party to this
Agreement by executing a signature page to this Agreement; 
  

 37 

 (D) after giving effect to the admission of any Subsequent Lender or the increase in the
Commitment of any Increasing Lender, the Aggregate Commitments do not exceed $150,000,000 (less the amount of any permanent reductions pursuant to Section 2.05); 
  
 (E) each increase in the Aggregate Commitments shall be in the minimum amount of $5,000,000 or a greater
integral multiple of $1,000,000; 
  
 (F) no
admission of any Subsequent Lender shall increase the Commitment of any existing Lender without the consent of such existing Lender; 
  
 (G) no Lender shall be an Increasing Lender without the consent of such Lender; 
  
 (H) no Default or Event of Default exists nor would occur
after giving effect to such increase; 
  
 (I)
Borrower, to the extent required by the Law of any state in which a Borrowing Base Property is located, pays any additional mortgage or similar tax required as a result of the increase in the Aggregate Commitments in order to ensure that each
Mortgage secures the entire amount of the Obligations; and 
  
 (J) Borrower shall execute and deliver, or cause to be delivered, to Administrative Agent such amendments and supplements to the Security Documents as Administrative Agent may reasonably request to evidence the
increase in the Aggregate Commitments. 
  
 After the admission of
any Subsequent Lender or the increase in the Aggregate Commitments of any Increasing Lender, Administrative Agent shall promptly provide to each Lender a new Schedule 2.01 to this Agreement. In the event that there are any Loans outstanding
after giving effect to an increase in the Aggregate Commitments pursuant to this Section 2.13, upon notice from Administrative Agent to each Lender, the amount of such Loans owing to each Lender shall be appropriately adjusted to reflect the
new Pro Rata Shares of Lenders, provided that Borrower shall be obligated to pay any amounts required pursuant to Section 3.05. 
  
 ARTICLE III. 
 TAXES, YIELD
PROTECTION, AND ILLEGALITY 
  
 3.01 Taxes. 

 
 (a) Payments Free of Taxes. Any and all payments by or on account
of any obligation of Borrower hereunder or under any other Loan Document shall be made free and clear of and without reduction or withholding for any Indemnified Taxes or Other Taxes, provided that if Borrower shall be required by applicable
law to deduct any Indemnified Taxes (including any Other Taxes) from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable
under this Section) Administrative Agent, Lender or L/C Issuer, as the case may be, receives an amount equal to the sum it would have received had no such deductions been made, (ii) Borrower shall make such deductions and (iii) Borrower shall timely
pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law. 
  
 (b) Payment of Other Taxes by Borrower. Without limiting the provisions of Section 3.01(a) above, Borrower shall timely pay any Other Taxes
to the relevant Governmental Authority in accordance with applicable law. 
  

 38 

 (c) Indemnification by Borrower. Borrower shall indemnify Administrative Agent, each Lender and
L/C Issuer, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) paid by
Administrative Agent, such Lender or L/C Issuer, as the case may be, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to Borrower by a Lender or L/C Issuer (with a copy to Administrative Agent), or by Administrative Agent on its own
behalf or on behalf of a Lender or L/C Issuer, shall be conclusive absent manifest error. 
  
 (d) Evidence of Payments. As soon as reasonably practicable after any payment of Indemnified Taxes or Other Taxes by Borrower to a Governmental Authority, Borrower shall deliver to Administrative Agent the
original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to Administrative Agent. 
  
 (e) Status of Lenders. Any Lender or L/C Issuer that is entitled to an
exemption from or reduction of withholding tax with respect to payments hereunder or under any other Loan Document shall deliver to Borrower (with a copy to Administrative Agent), at the time or times prescribed by applicable law or reasonably
requested by Borrower or Administrative Agent, such properly completed and executed documentation prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender
or L/C Issuer, if requested by Borrower or Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by Borrower or Administrative Agent as will enable Borrower or Administrative Agent to
determine whether or not such Lender or L/C Issuer is subject to backup withholding or information reporting requirements. 
  
 (f) Resident Borrower. Without limiting the generality of the foregoing, in the event that Borrower is resident for tax purposes in the United
States, any Foreign Lender shall deliver to Borrower and Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time
to time thereafter upon the request of Borrower or Administrative Agent), whichever of the following is applicable: 
  
 (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax treaty to which the
United States is a party; 
  
 (ii) duly completed
copies of Internal Revenue Service Form W-8ECI; 
  
 (iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning
of section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of Borrower or any Guarantor within the meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section 881(c)(3)(C)
of the Code and (y) duly completed copies of Internal Revenue Service Form W-8BEN; or 
  
 (iv) any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in United States Federal
withholding tax duly completed together with such supplementary documentation as may be prescribed by applicable law to permit Borrower to determine the withholding or deduction required to be made. 
  

 39 

 (g) Treatment of Certain Refunds. If Administrative Agent, any Lender, Participant or L/C Issuer
receives (whether through payment, credit, offset or otherwise) a refund of any Taxes or Other Taxes as to which it has been indemnified by Borrower or with respect to which Borrower has paid additional amounts pursuant to this Section 3.01,
it shall pay to Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by Borrower under this Section 3.01 with respect to the Taxes or Other Taxes giving rise to such refund),
net of all out-of-pocket expenses of Administrative Agent, such Lender, Participant or L/C Issuer, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund),
provided that Borrower, upon the request of Administrative Agent, such Lender, Participant or L/C Issuer, agrees to repay the amount paid over to Borrower (plus any penalties, interest, or other charges imposed by the relevant Governmental
Authority) to Administrative Agent, such Lender, Participant or L/C Issuer in the event Administrative Agent, such Lender, Participant or L/C Issuer is required to repay such refund to such Governmental Authority. This subsection shall not be
construed to require Administrative Agent, any Lender, Participant or L/C Issuer to make available its tax returns (or any other information relating to its taxes that it deems confidential) to Borrower or any other Person. 
  
 3.02 Illegality. If any Lender determines that any Law has made it
unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund Eurodollar Rate Loans, or to determine or charge interest rates based upon the Eurodollar Rate,
or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to Borrower through
Administrative Agent, any obligation of such Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans shall be suspended until such Lender notifies Administrative Agent and Borrower that the
circumstances giving rise to such determination no longer exist. Upon receipt of such notice, Borrower shall, upon demand from such Lender (with a copy to Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such
Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such
Eurodollar Rate Loans. Upon any such prepayment or conversion, Borrower shall also pay accrued interest on the amount so prepaid or converted. 
  
 3.03 Inability to Determine Rates. If the Required Lenders determine that for any reason in connection with any request for a Eurodollar Rate Loan
or a conversion to or continuation thereof that (a) Dollar deposits are not being offered to banks in the London interbank eurodollar market for the applicable amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and reasonable
means do not exist for determining the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan , or (c) the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan
does not adequately and fairly reflect the cost to such Lenders of funding such Loan, Administrative Agent will promptly so notify Borrower and each Lender. Thereafter, the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be
suspended until Administrative Agent (upon the instruction of the Required Lenders, which instruction the Required Lenders shall provide if the circumstances giving rise to such determination no longer exist) revokes such notice. Upon receipt of
such notice, Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans in the
amount specified therein. 
  

 40 

 3.04 Increased Costs; Reserves on Eurodollar Rate Loans. 
  
 (a) Increased Costs Generally. If any Change in Law shall: 

 
 (i) impose, modify or deem applicable any reserve,
special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement contemplated by Section
3.04(e)) or L/C Issuer; 
  
 (ii) subject any
Lender or L/C Issuer to any tax of any kind whatsoever with respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit, or any Eurodollar Loan made by it, or change the basis of taxation of payments to such Lender or
L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes covered by Section 3.01 and the imposition of, or any change in the rate of, any Excluded Tax payable by such Lender or L/C Issuer); or 
  
 (iii) impose on any Lender or L/C Issuer or the London
interbank market any other condition, cost, or expense affecting this Agreement or Eurodollar Loans made by such Lender or any Letter of Credit or participation therein; 
  
 and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan (or of
maintaining its obligation to make any such Loan), or to increase the cost to such Lender or L/C Issuer of participating in, issuing, or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of
Credit), or to reduce the amount of any sum received or receivable by such Lender or L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or L/C Issuer, Borrower will pay to such Lender or L/C
Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or L/C Issuer, as the case may be, for such additional costs incurred or reduction suffered. 
  
 (b) Capital Requirements. If any Lender or L/C Issuer determines that any Change in Law affecting such Lender or L/C
Issuer or the Lending Office of such Lender or such Lender’s or L/C Issuer’s holding company, if any, regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or L/C Issuer’s
capital or on the capital of such Lender’s or L/C Issuer’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of Credit held by, such Lender, or
the Letters of Credit issued by L/C Issuer, to a level below that which such Lender or L/C Issuer or such Lender’s or L/C Issuer’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s
or L/C Issuer’s policies and the policies of such Lender’s or L/C Issuer’s holding company with respect to capital adequacy), then from time to time Borrower will pay to such Lender or L/C Issuer, as the case may be, such additional
amount or amounts as will compensate such Lender or L/C Issuer or such Lender’s or L/C Issuer’s holding company for any such reduction suffered. 
  
 (c) Certificates for Reimbursement. A certificate of a Lender or L/C Issuer setting forth the amount or amounts necessary to compensate such Lender
or L/C Issuer or its holding company, as the case may be, as specified in Sections 3.04(a) or (b) and delivered to Borrower shall be conclusive absent manifest error. Borrower shall pay such Lender or L/C Issuer, as the case may be,
the amount shown as due on any such certificate within ten (10) days after receipt thereof. 
  
 (d) Delay in Requests. Failure or delay on the part of any Lender or L/C Issuer to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of such Lender’s or
L/C Issuer’s right to demand such compensation, provided that Borrower shall not be 

  

 41 

 
required to compensate a Lender or L/C Issuer pursuant to the foregoing provisions of this Section 3.04 for any increased costs incurred or reductions
suffered more than nine months prior to the date that such Lender or L/C Issuer, as the case may be, notifies Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or L/C Issuer’s intention to
claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).

  
 (e) Reserves on Eurodollar Rate Loans. Borrower shall
pay to each Lender, as long as such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”),
additional interest on the unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive),
which shall be due and payable on each date on which interest is payable on such Loan, provided Borrower shall have received at least ten (10) days’ prior notice (with a copy to Administrative Agent) of such additional interest from such
Lender. If a Lender fails to give notice ten (10) days prior to the relevant Interest Payment Date, such additional interest shall be due and payable ten (10) days from receipt of such notice. 
  
 3.05 Compensation for Losses. Upon demand of any Lender (with a copy
to Administrative Agent) from time to time, Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of: 
  
 (a) any continuation, conversion, payment or prepayment of any Loan other than a Base Rate Loan on a day other than the last
day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise); 
  
 (b) any failure by Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Loan other than
a Base Rate Loan on the date or in the amount notified by Borrower; or 
  
 (c) any assignment of a Eurodollar Rate Loan on a day other than the last day of the Interest Period therefor as a result of a request by Borrower pursuant to Section 11.13; 
  
 including any loss of anticipated profits and any loss or expense arising from the
liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained. Borrower shall also pay any customary administrative fees charged by such Lender in
connection with the foregoing. 
  
 For purposes of calculating amounts payable by
Borrower to the Lenders under this Section 3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar Rate for such Loan by a matching deposit or other borrowing in the London interbank eurodollar
market for a comparable amount and for a comparable period, whether or not such Eurodollar Rate Loan was in fact so funded. 
  
 3.06 Mitigation Obligations; Replacement of Lenders. 
  
 (a) Designation of a Different Lending Office. If any Lender requests compensation under Section 3.04, or Borrower is required to pay
any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then such Lender shall use reasonable efforts to
designate a different Lending Office for 

  

 42 

 
funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the
judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in the future, or eliminate the need for the notice pursuant to Section
3.02, as applicable, and (ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be materially disadvantageous to such Lender. Borrower hereby agrees to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment. 
  
 (b) Replacement of Lenders. If any Lender requests compensation under Section 3.04, or if Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of
any Lender pursuant to Section 3.01, Borrower may replace such Lender in accordance with Section 11.13. 
  
 3.07 Survival. All of Borrower’s obligations under this Article III shall survive termination of the Aggregate Commitments and
repayment of all other Obligations hereunder. 
  
 ARTICLE IV.

 BORROWING BASE; SECURITY 
  
 4.01 Borrowing Base. 
  
 (a) The “Borrowing Base” means, as of the last day of each fiscal quarter or any other applicable date of determination during the term
hereof, the sum of the Implied Loan Amounts with respect to each of the Borrowing Base Properties owned by a Loan Party; provided that for the period beginning on the Closing Date through December 31, 2004, the “Borrowing
Base” means the lesser of (i) the sum of the Implied Loan Amounts with respect to each of the Borrowing Base Properties owned by a Loan Party, and (ii) the greater of (A) an implied amount of Total Outstandings that would result in a ratio
of (1) Adjusted NOI for the Borrowing Base Properties to (2) Implied Debt Service equal to 1.60 to 1.0, and (B) $65,000,000 (such amount to be reduced in an amount to be reasonably determined by Administrative Agent if any Initial Borrowing Base
Property is removed from the Borrowing Base and not replaced with another Property in accordance with Section 4.02). 
  
 (b) The “Implied Loan Amount” with respect to any Borrowing Base Property means, as of the last day of any fiscal quarter or any other
applicable date of determination during the term hereof, the product of (i) the Appraised Value (determined using the most-recent Acceptable Appraisal delivered to or required by Administrative Agent) of such Borrowing Base Property, and (ii) sixty
percent (60%). Notwithstanding the foregoing, the amount attributable to the Borrowing Base with respect to (i) any single Borrowing Base Property (other than Wyndham Palm Springs and Wyndham St. Anthony) shall not exceed fifteen percent (15%) of
the Borrowing Base, (ii) Borrowing Base Properties (other than Wyndham Palm Springs and Wyndham St. Anthony) located in any single metropolitan statistical area shall not exceed twenty percent (20%) of the Borrowing Base, and (iii) all Borrowing
Base Properties in operation for less than one (1) year shall not exceed ten percent (10%) of the Borrowing Base. 
  
 (c) Each change in the Borrowing Base shall be effective upon receipt of a new Borrowing Base Report pursuant to Section 7.02(b)(ii); provided
that any increase in the Borrowing Base reflected in such Borrowing Base Report shall not become effective until the fifth (5th) Business Day following delivery thereof and provided further that any change in the Borrowing Base as a result of the receipt of a new Acceptable Appraisal pursuant to Section 4.04 shall be effective upon the
date that Administrative Agent approves such appraisal, and any change in the Borrowing Base as a result of the admission of a Property into the Borrowing Base pursuant to Section 4.02 shall be effective upon the date that such Property is
admitted into the Borrowing Base. 
  

 43 

 4.02 Substitution of Borrowing Base Properties and Admission of Properties into the Borrowing Base.

  
 (a) Borrower shall provide Administrative Agent with a
written request for a Property to be admitted into the Borrowing Base in substitution of an existing Borrowing Base Property or in addition to the existing Borrowing Base Properties, in connection with an increase in the Aggregate Commitments
pursuant to Section 2.13, or otherwise. Such request shall be accompanied by information regarding such Property (the “Property Information”), including, without limitation, the following, in each case reasonably acceptable
to Administrative Agent: (i) a general description of such Property’s location, market, and amenities; (ii) a property description; (iii) purchase information (including any contracts of sale and closing statements); (iv) cash flow projections
for the next three (3) years and operating statements for at least the previous three (3) years or since opening if open less than three (3) years; (v) a property condition report; (vi) a copy of the most-recent appraisal, if any; (vii) UCC
searches; (viii) copies of the internally-prepared “Investment Committee Memorandum” prepared by Borrower in connection with the acquisition of such Property; (ix) the documents and information with respect to such Property listed
in Sections 5.01(a)(xi) through (xxi) that were delivered in connection with the Initial Borrowing Base Properties; and (x) such other information reasonably requested by Administrative Agent as shall be necessary in order for
Administrative Agent and required Lenders to determine whether such Property is eligible to be a Borrowing Base Property. 
  
 (b) In order for a Property to be eligible for inclusion in the Borrowing Base, such Property shall have characteristics consistent with the following
general guidelines: 
  
 (i) such Property shall
be full service, extended stay, or limited service hotel of at least the same or similar quality as the Borrowing Base Properties as of the Closing Date, all as determined by Administrative Agent; 
  
 (ii) Borrower or a Guarantor shall have good and
indefeasible fee simple title to such Property, free and clear of all Liens (except for Liens permitted by Section 8.01); provided that (A) the Initial Borrowing Base Properties may be leased by Borrower or a Subsidiary Guarantor
pursuant to the Ground Lease, and (B) Required Lenders may approve additional Properties that are leased pursuant to a ground lease acceptable to the Required Lenders. 
  
 (iii) all Property Information shall be acceptable to Administrative Agent; 
  
 (iv) no Material Title Defects or Material Property Event
with respect to such Property shall exist; 
  
 (v) such Property shall have satisfactory access to public utilities; 
  
 (vi) the admission of such Property into the Borrowing Base shall not breach any obligation of any Loan Party under any other third party
agreements; 
  
 (vii) the Phase I environmental
assessment with respect to such Property shall not reveal any material defects or any Material Property Event; 
  
 (viii) the structural engineering report with respect to such Property shall not reveal any material defects; and 
  
 (ix) such Property shall be managed by a Qualified Manager
pursuant to a Management Agreement acceptable to Administrative Agent. 
  

 44 

 (c) Each Property shall be subject to Administrative Agent’s and Required Lender’s approval for
admission into the Borrowing Base. Notwithstanding the foregoing guidelines, Administrative Agent and Required Lenders shall have the right to disapprove the admission of a Property into the Borrowing Base that is otherwise qualified to be a
Borrowing Base Property, if Administrative Agent and Required Lenders determine that such new Property is not eligible for inclusion in the Borrowing Base; provided that, Administrative Agent and Required Lenders will not unreasonably
withhold their approval of the admission of a new Property into the Borrowing Base that satisfies the guidelines set forth in clause (b) above. 
  
 (d) Administrative Agent shall deliver or otherwise make available the Property Information to Lenders within five (5) Business Days after Borrower
delivers the Property Information to Administrative Agent (unless Administrative Agent requests additional Property Information within such time in which case the Property Information shall be delivered to Lenders within five (5) Business Days after
Borrower delivers such additional Property Information). Each Lender shall provide to Administrative Agent notice of whether such Lender has (i) preliminarily approved or disapproved a Property for admission into the Borrowing Base within fifteen
(15) Business Days after Administrative Agent delivers to such Lender the information described in clauses (iv) and (viii) of the definition of Property Information, and (ii) finally approved or disapproved a Property for admission
into the Borrowing Base within fifteen (15) Business Days after Administrative Agent delivers to such Lender the remaining Property Information. Administrative Agent shall promptly notify Borrower and Lenders whether Administrative Agent and Lenders
have approved or disapproved a Property for admission into the Borrowing Base. 
  
 (e) A Property shall not be admitted into the Borrowing Base until a Loan Party shall have executed and delivered (or cause to be executed and delivered) to Administrative Agent, for the ratable benefit of the
Lenders, Security Documents covering such Property, and Administrative Agent shall have a perfected, first priority Lien on such Property (subject to Liens permitted by Section 8.01), for the ratable benefit of the Lenders and such Loan Party
shall have delivered Title Insurance covering such Property. 
  
 (f) If a Property is admitted into the Borrowing Base, then Administrative Agent shall promptly notify Borrower and Lenders in writing of any changes to the Borrowing Base as a result of the admission of such Property into the Borrowing
Base. 
  
 (g) If any Borrowing Base Property is subject to or
suffers a Material Environmental Event, then Administrative Agent and Lenders shall have the right in their sole discretion at any time and from time to time to notify Borrower that, effective upon the giving of such notice, and for so long as such
Material Environmental Event exists, such Borrowing Base Property shall no longer be considered a Borrowing Base Property for purposes of determining the Borrowing Base. If Administrative Agent delivers a notice with respect to a Borrowing Base
Property as set forth in this Section 4.02(g), then at such time as such Borrowing Base Property is no longer subject to a Material Environmental Event, Borrower may give Administrative Agent written notice thereof (together with reasonably
detailed evidence of the cure of such condition) and such Borrowing Base Property shall, effective with the delivery by Borrower of the next Borrowing Base Report, be considered a Borrowing Base Property for purposes of calculating the Borrowing
Base until such time as any of the conditions set forth above apply thereto. 
  
 4.03 Liens on Borrowing Base Properties. As more fully described in the Security Documents, Borrower shall, and shall cause each other Loan Party to, grant to Administrative Agent, for the ratable benefit of
the Lenders, as security for the payment and performance of the Obligations, a valid, 

  

 45 

 
enforceable, perfected, first priority, and only Lien on and to the Borrowing Base Properties (subject to Liens permitted by Section 8.01).

  
 4.04 Appraisals. 
  
 (a) Administrative Agent will be entitled to engage professional appraisers,
at Borrower’s expense, eighteen (18) months after the Closing Date, in order to obtain an updated Acceptable Appraisal of each Borrowing Base Property. 
  
 (b) In addition to Acceptable Appraisals pursuant to clause (a) above, Administrative Agent may at its option obtain an Acceptable Appraisal of any
Borrowing Base Property or any part thereof, at Borrower’s expense, if an Event of Default exists, a Material Property Event with respect to a Borrowing Base Property has occurred, a Material Adverse Event has occurred, or an appraisal is
required more often under applicable Law. 
  
 (c) Borrower may at
its option request Administrative Agent to obtain, at Borrower’s expense, but not more often than once each calendar year during the term of this Agreement (and only if Administrative Agent does not otherwise obtain an appraisal during such
year), an Acceptable Appraisal of any Borrowing Base Property or any part thereof. 
  
 4.05 Releases of Collateral. 
  
 (a) Upon the written request of Borrower as long as no Default or Event of Default exists, Administrative Agent may release a Borrowing Base Property (other than Wyndham Palm Springs and Wyndham St. Anthony) from the Borrowing Base;
provided that Administrative Agent shall have no obligation to release any such Borrowing Base Property without a Borrowing Base Report setting forth in reasonable detail the calculations required to establish the amount of the Borrowing Base
without such Borrowing Base Property, but including any new Property admitted to the Borrowing Base, if any, and a Compliance Certificate setting forth in reasonable detail the calculations required to show that the Loan Parties are in compliance
with the terms of this Agreement after the release of such Borrowing Base Property and the addition of any such new Borrowing Base Property, in each case as of the day of such release and after giving effect thereto. 
  
 (b) Upon the written request of Borrower as long as no Default or Event of
Default exists, Administrative Agent may partially release a portion of a Borrowing Base Property consisting of vacant land that is ancillary to the operation of such Borrowing Base Property or otherwise, in Administrative Agent’s
determination, immaterial to the operation of such Borrowing Base Property; provided that Borrower shall deliver to Administrative Agent a new Acceptable Appraisal of the remaining portion of such Borrowing Base Property and/or other
information reasonably satisfactory to Administrative Agent in order to determine the effect, if any, on the Borrowing Base after giving effect to such partial release. 
  
 (c) Administrative Agent shall not release any Collateral or any portion of any Collateral unless, after giving effect to
any such release (i) no Default or Event of Default exists, (ii) the Borrowing Base equals or exceeds $75,000,000 after giving effect to such release, and (iii) there are at least six (6) Borrowing Base Properties remaining in the Borrowing Base
after giving effect to such release. 
  
 4.06 Guaranty.
Pursuant to the Subsidiary Guaranty, each Subsidiary of Borrower shall unconditionally guarantee in favor of Administrative Agent on behalf of the Lenders the full payment and performance of the Obligations; provided that no Subsidiary shall
be required to guarantee the payment and performance of the Obligations if such Subsidiary has existing Indebtedness not prohibited by 

  

 46 

 
Section 8.03 which prohibits such guarantee of the Obligations. As of the Closing Date, the Subsidiaries listed on Schedule 4.06 hereto shall
not be Guarantors. 
  
 ARTICLE V. 
 CONDITIONS PRECEDENT TO CREDIT EXTENSIONS 
  
 5.01 Conditions of Initial Credit Extension. The obligation of L/C Issuer and each Lender to make its initial Credit Extension hereunder is subject
to satisfaction of the following conditions precedent: 
  
 (a)
Administrative Agent’s receipt of the following, each of which shall be originals or telecopies (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, each dated
the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date) and each in form and substance satisfactory to Administrative Agent and each of the Lenders: 
  
 (i) executed counterparts of this Agreement, the Guaranties,
and the Security Documents with respect to the Initial Borrowing Base Properties, sufficient in number for distribution to Administrative Agent, each Lender, and Borrower; 
  
 (ii) a Note executed by Borrower in favor of each Lender requesting a Note; 
  
 (iii) such certificates of resolutions or other action,
incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible
Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party; 
  
 (iv) such documents and certifications as Administrative Agent may reasonably require to evidence that each Loan Party is duly organized
or formed, and that each Loan Party is validly existing, in good standing, and qualified to engage in business in each jurisdiction where its ownership, lease, or operation of properties or the conduct of its business requires such qualification,
except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; 
  
 (v) favorable opinions of counsel to the Loan Parties, addressed to Administrative Agent and each Lender, as to such matters concerning
the Loan Parties and the Loan Documents as the Administrative Agent may reasonably request; 
  
 (vi) a certificate of a Responsible Officer of each Loan Party either (A) attaching copies of all consents, licenses, and approvals
required in connection with the execution, delivery, and performance by such Loan Party and the validity against such Loan Party of the Loan Documents to which it is a party, and such consents, licenses, and approvals shall be in full force and
effect, or (B) stating that no such consents, licenses, or approvals are so required; 
  
 (vii) a certificate signed by a Responsible Officer of Borrower certifying (A) that the conditions specified in Sections 5.02(a)
and (b) have been satisfied, and (B) that there has been no event or circumstance that has had or could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect; 
  

 47 

 (viii) (A) a duly completed Compliance Certificate as of March 31, 2004, signed by a
Responsible Officer of Borrower, (B) a duly completed Borrowing Base Report as of March 31, 2004, signed by a Responsible Officer of Borrower, and (C) the Pro Forma Financial Statements; 
  
 (ix) the insurance policies or other evidence of insurance satisfying the requirements of Section
7.15 to the extent required by Administrative Agent, together with evidence satisfactory to Administrative Agent that all premiums therefor have been paid for a period of not less than one (1) year from the date of this Agreement and that the
policies are in full force and effect; 
  
 (x) an
“as-is” market value appraisal of each Borrowing Base Property made within thirty (30) days prior to the date of this Agreement, which appraises each such Borrowing Base Property on a “completed value” basis. The appraiser and
appraisal must be satisfactory to Administrative Agent (including satisfaction of applicable regulatory requirements) and the appraiser must be engaged directly by Administrative Agent; 
  
 (xi) (A) two (2) prints of an original survey of each Borrowing Base Property and Improvements thereon dated
not more than sixty (60) days prior to the date of this Agreement (or dated such earlier date, if any, as is satisfactory to Administrative Agent and Title Insurer, but in any event not more than one hundred eighty (180) days prior to the date of
this Agreement) and otherwise complying with Exhibit “F” to the extent required by Administrative Agent and Title Insurer, and (B) a flood insurance policy in an amount required by Administrative Agent, but in no event less than the
amount sufficient to meet the requirements of applicable law and the Flood Disaster Protection Act of 1973, as amended, or evidence reasonably satisfactory to Administrative Agent that none of the Borrowing Base Properties are located in a flood
hazard area; 
  
 (xii) two (2) true and correct
copies of all existing Plans (including the site plan) satisfactory to Administrative Agent, together with evidence satisfactory to Administrative Agent that all applicable Governmental Authorities have approved same; 
  
 (xiii) true and correct copies of all Leases and subleases,
and guarantees thereof; 
  
 (xiv) evidence
satisfactory to Administrative Agent that no portion of any Borrowing Base Property is “wetlands” under any applicable Law and that the Borrowing Base Properties do not contain and is not within or near any area designated as a hazardous
waste site by any Governmental Authority, that no Borrowing Base Property nor any adjoining property contains or has ever contained any Hazardous Material under any Law pertaining to health or the environment, and that no Borrowing Base Property nor
any use or activity thereon violates or is or could be subject to any response, remediation, clean-up or other obligation under any Law pertaining to health or the environment including without limitation, a written report of an environmental
assessment of any Borrowing Base Property, made within one hundred eight (180) days prior to the date of this Agreement, by an engineering firm, and of a scope and in form and content satisfactory to Administrative Agent, complying with
Administrative Agent’s established guidelines, showing that there is no evidence of any Hazardous Material which has been generated, treated, stored, released or disposed of on any Borrowing Base Property, and such additional evidence as may be
required by Administrative Agent. All reports, drafts of reports, and recommendations, whether written or oral, from such engineering firm shall be made available and communicated to Administrative Agent; 
  
 (xv) (A) evidence that each Borrowing Base Property has full
adequate direct and free access to one or more public streets; (B) evidence that all applicable zoning ordinances, restrictive covenants, and Laws affecting each Borrowing Base Property permit the use for which such 

  

 48 

 
Borrowing Base Property is intended and have been or will be complied with; (C) evidence that each Borrowing Base Property and Improvements comply with all
Laws regarding subdivision and platting and constitute separate tax parcels; and (D) evidence of compliance by Borrower and each Borrowing Base Property, and any proposed construction, use and occupancy of the Improvements, with such other
applicable Laws as Administrative Agent may request, including all Laws regarding access and facilities for handicapped or disabled persons including, without limitation and to the extent applicable, The Federal Architectural Barriers Act (42 U.S.C.
§ 4151 et seq.), The Fair Housing Amendments Act of 1988 (42 U.S.C. § 3601 et seq.), The Americans With Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.), The Rehabilitation Act of 1973 (29 U.S.C. § 794), and any applicable
state requirements; 
  
 (xvi) evidence: (A) of
the identity of all taxing authorities and utility districts (or similar authorities) having jurisdiction over the Borrowing Base Properties or any portion thereof; (B) that all taxes, standby fees, and any other similar charges have been paid,
including copies of receipts or statements marked “paid” by the appropriate authority; and (C) that each Borrowing Base Property is a separate tax lot or lots with separate assessment or assessments of such Borrowing Base Property and
Improvements, independent of any other Borrowing Base Property or improvements and that each Borrowing Base Property is a separate legally subdivided parcel; 
  

(xvii) executed, acknowledged, and/or sworn to as required counterparts of the Mortgages, which shall have been recorded in the
official records of the city or county in which each Borrowing Base Property is located, and UCC-1 financing statements which shall have been filed in all filing offices that Administrative Agent may require or arrangements satisfactory to
Administrative Agent for such recordations and filings have been made; 
  
 (xviii) ALTA Title Insurance policies (or title insurance policies promulgated by the Laws of the state in which each Borrowing Base Property is located if an ALTA insurance policy is not available), issued by the
Title Insurer in the amount of the Aggregate Commitments plus any other amount secured by the Mortgages, on a coinsurance and/or reinsurance basis if and as reasonably required by Administrative Agent, insuring without exclusion or exception for
creditors’ rights that each Mortgage constitutes a valid lien covering the applicable Borrowing Base Property and all Improvements thereon, having the priority required by Administrative Agent and subject only to those exceptions and
encumbrances (regardless of rank or priority) Administrative Agent approves, in a form acceptable to Administrative Agent, and as satisfactory to Administrative Agent with all “standard” exceptions which can be deleted, including the
exception for matters which a current survey would show, deleted to the fullest extent authorized under applicable title insurance rules, and Borrower shall satisfy all requirements therefor permitted; containing no exception for standby fees or
real estate taxes or assessments other than those for the year in which the closing occurs to the extent the same are not then due and payable and endorsed “not yet due and payable” and no exception for subsequent assessments for prior
years; providing full coverage against mechanics’ and materialmens’ liens to the extent authorized under applicable title insurance rules, and Borrower shall satisfy all requirements therefor; insuring that no restrictive covenants shown
in the Title Insurance have been violated, and that no violation of the restrictions will result in a reversion or forfeiture of title; insuring all appurtenant easements; insuring that fee simple (or leased for approved Ground Leases) indefeasible
or marketable (as coverage is available) fee simple (or leasehold for approved Ground Leases) title to the Borrowing Base Properties and Improvements is vested in a Loan Party; containing such affirmative coverage and endorsements as Administrative
Agent may reasonably require and are available under applicable title insurance rules, and Borrower shall satisfy all requirements therefor; insuring any easements, leasehold estates or other matters appurtenant to or benefiting the Borrowing Base
Properties and/or the Improvements as part of the insured estate; insuring the right of access to each Borrowing Base Property to the extent authorized 

  

 49 

 
under applicable title insurance rules, and Borrower shall satisfy all requirements therefor; and containing provisions acceptable to Administrative Agent
regarding advances and/or readvances of Loan funds after closing. Borrower and Borrower’s counsel shall not have any interest, direct or indirect, in the Title Insurer (or its agent) or any portion of the premium paid for the Title Insurance;

  
 (xix) (A) evidence that prior to and as of
the time the Mortgages were filed for record (1) no activity or circumstance was visible on or near any Borrowing Base Property which would constitute inception of a mechanic’s or materialman’s lien against such Borrowing Base Property,
(2) no contract, or memorandum thereof, for construction, design, surveying, or any other service relating to any Borrowing Base Property has been filed for record in the county where such Borrowing Base Property is located, and (3) no
mechanic’s or materialman’s lien claim or notice, lis pendens, judgment, or other claim or encumbrance against any Borrowing Base Property has been filed for record in the county where such Borrowing Base Property is located or in any
other public record which by Law provides notice of claims or encumbrances regarding such Borrowing Base Property; (B) a certificate or certificates of a reporting service acceptable to Administrative Agent, reflecting the results of searches made
not earlier than thirty (30) days prior to the date of this Agreement: (1) of the central and local Uniform Commercial Code records, showing no filings against any of the collateral for the Obligations or against Borrower otherwise except as
consented to by Administrative Agent; and (2) if required by Administrative Agent, of the appropriate judgment and tax lien records, showing no outstanding judgment or tax lien against any Loan Party; 
  
 (xx) a true and correct copy of (A) each Franchise
Agreement, (B) each Ground Lease, and (C) each Operating Lease; and 
  
 (xxi) such other assurances, certificates, documents, consents, or opinions as Administrative Agent and L/C Issuer or the Required Lenders reasonably may require. 
  
 (b) Any fees required to be paid on or before the Closing Date shall have
been paid. 
  
 (c) Unless waived by Administrative Agent, Borrower
shall have paid all fees, charges and disbursements of counsel to Administrative Agent to the extent invoiced prior to or on the Closing Date, plus such additional amounts of such fees, charges and disbursements as shall constitute its reasonable
estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between Borrower and Administrative Agent).

  
 (d) Parent shall have completed an initial public offering of
its common Equity Interests and received gross cash proceeds of at least $200,000,000 resulting in such common Equity Interests being traded on the New York Stock Exchange. 
  
 Without limiting the generality of the provisions of Section 10.04, for purposes of determining compliance with the
conditions specified in this Section 5.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved, or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or
approved by or acceptable or satisfactory to a Lender unless Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto. 
  

 50 

 5.02 Conditions to all Credit Extensions. The obligation of each Lender to honor any Request for
Credit Extension (other than a Loan Notice requesting only a conversion of Loans to the other Type, or a continuation of Eurodollar Rate Loans) is subject to the following conditions precedent: 
  
 (a) The representations and warranties of any Loan Party contained in
Article VI or any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects on and as of the date of such Credit
Extension, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date, and except that for purposes of this
Section 5.02, the representations and warranties contained in Sections 6.05(a) and (b) shall be deemed to refer to the most recent statements furnished pursuant to Sections 7.01(a) and (b). 
  
 (b) No Default shall exist, or would result from such proposed Credit
Extension or from the application of the proceeds thereof. 
  
 (c)
Administrative Agent and, if applicable, L/C Issuer shall have received a Request for Credit Extension in accordance with the requirements hereof. 
  
 Each Request for Credit Extension (other than a Loan Notice requesting only a conversion of Loans to the other Type or a continuation of Eurodollar Rate
Loans) submitted by Borrower shall be deemed to be a representation and warranty that the conditions specified in Sections 5.02(a) and (b) have been satisfied on and as of the date of the applicable Credit Extension. 
  
 ARTICLE VI. 
 REPRESENTATIONS AND WARRANTIES 
  
 Parent and Borrower represent and warrant to Administrative Agent and the Lenders that: 
  
 6.01 Existence, Qualification, and Power; Compliance with Laws. Each Loan Party (a) is duly organized or formed, validly existing, and in good
standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own its assets and carry on its
business and (ii) execute, deliver, and perform its obligations under the Loan Documents to which it is a party, (c) is duly qualified and is licensed and in good standing under the Laws of each jurisdiction where its ownership, lease, or operation
of properties or the conduct of its business requires such qualification or license, and (d) is in compliance with all Laws; except in each case referred to in clause (b)(i), (c), or (d), to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect. 
  
 6.02
Authorization; No Contravention. The execution, delivery, and performance by each Loan Party of each Loan Document to which such Person is party, have been duly authorized by all necessary corporate or other organizational action, and do not and
will not (a) contravene the terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any Contractual
Obligation to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or
its property is subject; or (c) violate any Law. Each Loan Party is in compliance with all Contractual Obligations referred to in clause (b)(i), except to the extent that failure to do so could not reasonably be expected to have a Material Adverse
Effect. 
  
 6.03 Governmental Authorization; Other
Consents. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery, or performance by, or
enforcement against, any Loan Party of this Agreement or any other Loan Document. 
  

 51 

 6.04 Binding Effect. This Agreement has been, and each other Loan Document, when delivered
hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid, and binding obligation of such Loan Party,
enforceable against each Loan Party that is party thereto in accordance with its terms, subject to applicable bankruptcy, insolvency, and similar Laws affecting rights of creditors generally and general principles of equity. 
  
 6.05 Financial Statements; No Material Adverse Effect. 
  
 (a) The Pro Forma Financial Statements (i) were prepared in accordance with
GAAP consistently applied throughout the period covered thereby, except that such Pro Forma Financial Statements may exclude substantially all of the footnotes and disclosures required by GAAP, (ii) fairly present the financial condition of Parent
and the Subsidiaries as of the date thereof and their results of operations for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and (iii)
show all material indebtedness and other liabilities, direct or contingent, of Parent and the Subsidiaries as of the date thereof, including liabilities for taxes, material commitments, and Indebtedness. 
  
 (b) Since the date of the Pro Forma Financial Statements, there has been no
event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect. 
  
 6.06 Litigation. There are no actions, suits, proceedings, claims, or disputes pending or, to the knowledge of Parent or Borrower after due and
diligent investigation, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against Parent or any of the Subsidiaries or against any of their properties or revenues that (a) purport to affect or
pertain to this Agreement or any other Loan Document, or any of the transactions contemplated hereby, or (b) either individually or in the aggregate, if determined adversely, could reasonably be expected to have a Material Adverse Effect.

  
 6.07 No Default. Neither Parent nor any Subsidiary is
in default under or with respect to any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continuing or would result from the
consummation of the transactions contemplated by this Agreement or any other Loan Document. 
  
 6.08 Ownership of Property; Liens. Each of Parent and each Subsidiary has good record and marketable title in fee simple to, or valid leasehold interests in, all real property necessary or used in the ordinary
conduct of its business, except for such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Properties of Borrower and its Subsidiaries is subject to no Liens, other than
Liens permitted by Section 8.01. 
  
 6.09 Environmental
Compliance. 
  
 (a) Parent and each Subsidiary conduct in the
ordinary course of business a review of the effect of Environmental Laws and claims alleging potential liability or responsibility for violation of any Environmental Law on their respective businesses, operations, and properties, and as a result
thereof Parent and each Subsidiary have reasonably concluded that such Environmental Laws and claims could not, individually or in the aggregate, reasonably be expected to cause a Material Property Event. 
  
 (b) After due inquiry and investigation in accordance with good commercial or
customary practices to determine whether contamination is present on any real property or elsewhere in connection 

  

 52 

 
with any activity on such real property, without regard to whether Administrative Agent or any Lender has or hereafter obtains any knowledge or report of the
environmental condition of such real property, except as may be indicated in the environmental assessment reports delivered to Administrative Agent prior to the Closing Date in connection with its due diligence investigations in connection with the
Loans: (a) during the period of Parent’s or any Subsidiaries’ ownership of all of its real property, such real property has not been used for industrial or manufacturing purposes, for landfill, dumping, or other waste disposal activities
or operations, for generation, storage, use, sale, treatment, processing, recycling, or disposal of any Hazardous Material, for underground or aboveground storage tanks, or for any other use that, in each case, could give rise to a Material Property
Event; to Parent’s and each Subsidiaries’ knowledge, no such use of its real property occurred at any time prior to the period of Parent’s or any Subsidiaries’ ownership of such real property; and to Parent’s and each
Subsidiaries’ knowledge, no such use on any adjacent property occurred at any time prior to the date hereof which could reasonably be expected to cause a Material Property Event; (b) to Parent’s and each Subsidiaries’ knowledge, there
is no Hazardous Material, storage tank (or similar vessel) whether underground or otherwise, sump or well currently on its real property which could reasonably be expected to cause a Material Property Event; (c) neither Parent nor any Subsidiary has
received any notice and has no knowledge of any Environmental Claim or any completed, pending or proposed or threatened investigation or inquiry concerning the presence or release of any Hazardous Material on its real property or any adjacent
property or concerning whether any condition, use or activity on its real property or any adjacent property is in violation of any Environmental Requirement; (d) the present conditions, uses, and activities on its real property does not violate any
Environmental Requirement and the use of its real property which Parent or any Subsidiary (and each tenant and subtenant, if any) makes and intends to make of its real property complies and will comply with all applicable Environmental Requirements;
(e) its real property does not appear on and to Parent’s and each Subsidiaries’ knowledge have never been on the National Priorities List, any federal or state “superfund” or “superlien” list, or any other list or
database of properties maintained by any local, state, or federal agency or department showing properties which are known to contain or which are suspected of containing a Hazardous Material; (f) neither Parent nor any Subsidiary has ever applied
for and been denied environmental impairment liability insurance coverage relating to its real property; and (g) neither Parent or any Subsidiary has, nor have, to Parent’s and each Subsidiaries’ knowledge, any tenants or subtenants,
obtained any permit or authorization to construct, occupy, operate, use, or conduct any activity on any of its real property by reason of any Environmental Requirement. 
  
 6.10 Insurance. The real property of Borrower and its Subsidiaries is insured with financially sound and reputable
insurance companies not Affiliates of Parent, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where Parent or the
applicable Subsidiary operates. 
  
 6.11 Taxes. Parent and
its Subsidiaries have filed all Federal, state, and other material tax returns and reports required to be filed, and have paid all Federal, state, and other material taxes, assessments, fees, and other governmental charges levied or imposed upon
them or their properties, income, or assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP.
There is no proposed tax assessment against Parent or any Subsidiary that would, if made, have a Material Adverse Effect. 
  
 6.12 ERISA Compliance. 
  
 (a) Each Employer Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal or state Laws. Each
Employer Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the best

  

 53 

 
knowledge of Parent and Borrower, nothing has occurred which would prevent, or cause the loss of, such qualification. Parent and each ERISA Affiliate have
made all required contributions to each Employer Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any
Employer Plan. 
  
 (b) There are no pending or, to the best
knowledge of Parent and Borrower, threatened claims, actions, or lawsuits, or action by any Governmental Authority, with respect to any Employer Plan that could be reasonably be expected to have a Material Adverse Effect. There has been no
prohibited transaction or violation of the fiduciary responsibility rules with respect to any Employer Plan that has resulted or could reasonably be expected to result in a Material Adverse Effect. 
  
 (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii)
no Pension Plan has any Unfunded Pension Liability; (iii) neither Parent nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not
delinquent under Section 4007 of ERISA); (iv) neither Parent nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in
such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither Parent nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA. 
  
 (d) (i) neither Parent nor any Loan Party is, nor will be (A) a Pension Plan;
or (B) a “plan” within the meaning of Section 4975(e) of the Code; (ii) the assets of Parent and its Subsidiaries do not and will not constitute “plan assets” within the meaning of the United States Department of Labor
Regulations set forth in 29 C.F.R. §2510.3-101; (iii) neither Parent nor any Loan Party is, nor will be a “governmental plan” within the meaning of Section 3(32) of ERISA; (iv) transactions by or with Parent or any Loan Party
are not and will not be subject to state statutes applicable to Parent and any Loan Party regulating investments of fiduciaries with respect to governmental plans; and (v) neither Parent nor any Loan Party shall engage in any transaction which would
cause any obligation, or action taken or to be taken, hereunder (or the exercise by Administrative Agent or any Lender of any of its rights under this Agreement, any Note, or the other Loan Documents) to be a non-exempt (under a statutory or
administrative class exemption) prohibited transaction under ERISA or Section 4975 of the Code. Parent further agrees to deliver to Administrative Agent such certifications or other evidence of compliance with the provisions of this
Section 6.12 as Administrative Agent may from time to time reasonably request. 
  

 54 

 6.13 Subsidiaries; Equity Interests. Borrower has no Subsidiaries other than those specifically
disclosed in Part (a) of Schedule 6.13 (as amended from time to time to reflect new Subsidiaries or Subsidiaries that no longer exist, in each case as permitted pursuant to the terms of this Agreement), and all of the outstanding Equity
Interests in such Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by a Loan Party in the amounts specified on Part (a) of Schedule 6.13 (as amended from time to time to reflect new Subsidiaries or
Subsidiaries that no longer exist, in each case as permitted pursuant to the terms of this Agreement) free and clear of all Liens. Borrower has no equity investments in any other corporation or entity other than those specifically disclosed in Part
(b) of Schedule 6.13 (as amended from time to time to reflect new Subsidiaries or Subsidiaries that no longer exist, in each case as permitted pursuant to the terms of this Agreement). All of the outstanding Equity Interests in Borrower have
been validly issued, and are fully paid and nonassessable. 
  
 6.14 Margin Regulations; Investment Company Act; Public Utility Holding Company Act. 
  
 (a) Borrower is not currently engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying
margin stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying margin stock. 
  
 (b) None of Parent, any Person Controlling Parent, or any Subsidiary of Parent (i) is a “holding company,” or a “subsidiary company”
of a “holding company,” or an “affiliate” of a “holding company” or of a “subsidiary company” of a “holding company,” within the meaning of the Public Utility Holding Company Act of 1935, or (ii) is
or is required to be registered as an “investment company” under the Investment Company Act of 1940. 
  
 6.15 Disclosure. Each of Parent and Borrower has disclosed to Administrative Agent and the Lenders all agreements, instruments, and corporate or
other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. No report, financial statement,
certificate, or other information furnished (whether in writing or orally) by or on behalf of any Loan Party to Administrative Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or
delivered hereunder (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading; provided that, with respect to projected financial information, each of Parent and Borrower represents only that such information was prepared in good faith based upon assumptions believed to be
reasonable at the time. 
  
 6.16 Compliance with Laws.
Parent and each of the Subsidiaries are in compliance in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such
requirement of Law or order, writ, injunction, or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect. 
  
 6.17
Drainage/Condemnation/Zoning. The Improvements have not been materially damaged and not repaired and are not the subject of any pending or threatened condemnation or adverse zoning proceeding. 
  

 55 

 6.18 Property Condition. Except as otherwise disclosed to Administrative Agent in writing: (a) the
Plans are complete in all material respects, contain all necessary detail, are satisfactory to the applicable Loan Party, have been approved by all applicable Governmental Authorities and comply with all applicable Laws, restrictive covenants, rules
and regulations; (b) no Borrowing Base Property is part of a larger tract of property owned by a Loan Party, is otherwise included under any unity of title or similar covenant with other property not owned by a Loan Party, nor fails to constitute a
separate tax lot or lots with a separate tax assessment or assessments for such Borrowing Base Property and Improvements, independent of those for any other property or improvements; (c) each Borrowing Base Property complies with all Laws, including
all subdivision and platting requirements, without reliance on any adjoining or neighboring property; (d) the Improvements comply with all Laws regarding access and facilities for handicapped or disabled persons; (e) no Loan Party has directly or
indirectly conveyed, assigned or otherwise disposed of or transferred (or agreed to do so) any development rights, air rights, or other similar rights, privileges, or attributes with respect to any Borrowing Base Property, including those arising
under any zoning or property use ordinance or other Law; (f) all utility services necessary for the use of the Borrowing Base Properties and the Improvements and the operation thereof for their intended purpose are satisfactory; (g) except as
otherwise provided for or permitted in the Loan Documents, no Loan Party has made a contract or arrangement of any kind the performance of which by the other party thereto would give rise to a Lien on any Borrowing Base Property; (h) the current and
anticipated use of each Borrowing Base Property complies with all applicable zoning ordinances, regulations, and restrictive covenants affecting such Borrowing Base Property without the existence of any variance, non-complying use, nonconforming
use, or other special exception, all use restrictions of any Governmental Authority having jurisdiction have been satisfied, and no violation of any Law or regulation exists with respect thereto which could reasonably be expected to cause a Material
Property Event. 
  
 6.19 Representations Concerning Leases.
Each Loan Party has delivered to Administrative Agent a true and correct copy of all tenant Leases and each guarantee thereof (if any), affecting any part of the Improvements, and no such Lease or guarantee contains any option to purchase all or any
portion of any Borrowing Base Property or any interest therein or contains any right of first refusal relating to any sale of any Borrowing Base Property or any portion thereof or interest therein. 
  
 6.20 Contracts and Plans. The copy of any construction, architectural
design, management, brokerage, or contract relating to any Borrowing Base Property furnished or to be furnished to Administrative Agent is and shall be a true and complete copy thereof, that the copies of the Plans delivered to Administrative Agent
are and shall be true and complete copies of the Plans, that there have been no modifications thereof which are not fully set forth in the copies delivered, and that no Loan Party’s interest therein is subject to any claim, setoff, or
encumbrance. 
  
 6.21 Reciprocal Agreements. 
  
 (a) No Loan Party is currently in default in any respect (nor has any notice
been given or received with respect to an alleged or current default) under any of the terms and conditions of any REA, and each REA remains unmodified and in full force and effect except where such failure could not reasonably be expected to cause
a Material Property Event. 
  
 (b) All sums due and owing by any
Loan Party to the other parties to each REA (or by the other parties to each REA to any Loan Party) pursuant to the terms of such REA, have been paid, are current, and no lien has attached on any Borrowing Base Property (or threat thereof been made)
for failure to pay any of the foregoing except where such failure could not reasonably be expected to cause a Material Property Event. 
  

 56 

 6.22 Management Agreements. Each Management Agreement is in full force and effect and there is no
default or terminating event thereunder by a Loan Party or, to Parent’s or Borrower’s knowledge, any party thereto and, to Parent’s or Borrower’s knowledge, no event has occurred that, with the passage of time and/or the giving
of notice would constitute a default or terminating event thereunder except for such defaults or terminating events specifically disclosed to Administrative Agent in writing or which could not reasonably be expected to cause a Material Property
Event. No management fees under any Management Agreement are accrued and unpaid except as provided or permitted under the express terms of a Management Agreement. 
  
 6.23 Franchise Agreements. Each Franchise Agreement is in full force and effect and there is no default or
terminating event thereunder by any party thereto and, to Parent’s or Borrower’s knowledge, no event has occurred that, with the passage of time and/or the giving of notice would constitute a default or terminating event thereunder except
for such defaults or terminating events specifically disclosed to Administrative Agent in writing as of the Closing Date or which could not reasonably be expected to cause a Material Property Event. As of the date hereof, no unpaid fees are due and
payable under any Franchise Agreement, including, without limitation, all franchise fees, reservation fees, and royalties. 
  
 6.24 Solvency. Each Loan Party is, and after giving effect to the Loans, will be, Solvent. 
  
 6.25 Operating Leases. 
  
 (a) Each Operating Lease is in full force and effect and has not been
modified or amended in any manner whatsoever (with the exception of written instruments which have been recorded). 
  
 (b) There are no material defaults or terminating events under any Operating Lease by any Loan Party, or, to such Loan Party’s knowledge, the
Operating Lessee thereunder, that have not been waived or cured and, to such Loan Party’s knowledge, no event has occurred which but for the passage of time, or notice, or both would constitute a material default or terminating event under any
Operating Lease that has not been waived or cured except for such material defaults or terminating events specifically disclosed to Administrative Agent in writing as of the Closing Date or which could not reasonably be expected to cause a Material
Property Event. 
  
 (c) Except as disclosed to Administrative
Agent in writing, all Rents, additional Rents, and other sums due and payable under each Operating Lease have been paid in full. 
  
 (d) No Loan Party nor the Operating Lessee under any Operating Lease has commenced any action or given or received any notice for the purpose of
terminating such Operating Lease, the termination of which could not reasonably be expected to cause a Material Property Event. 
  
 6.26 Ground Lease Representations. 
  
 (a) Each Ground Lease is in full force and effect. 
  
 (b) There are no defaults or terminating events under any Ground Lease by any Loan Party, or, to each Loan Party’s knowledge, any ground lessor
thereunder, and, to each Loan Party’s knowledge, no event has occurred which but for the passage of time, or notice, or both would constitute a default or terminating event under any Ground Lease except for such defaults or terminating events
specifically disclosed to Administrative Agent in writing as of the Closing Date or which could not reasonably be expected to cause a Material Property Event. 
  

 57 

 (c) All rents, additional rents, and other sums due and payable under each Ground Lease have been paid in
full. 
  
 (d) No Loan Party nor the ground lessor under any Ground
Lease has commenced any action or given or received any notice for the purpose of terminating such Ground Lease which could not reasonably be expected to cause a Material Property Event. 
  
 (e) Each Ground Lease or a memorandum thereof has been duly recorded. Each Ground Lease permits the interest of the
applicable Loan Party to be encumbered by a mortgage. 
  
 (f) Each
Loan Party’s interest in each Ground Lease is not subject to any Liens or encumbrances superior to, or of equal priority with, the related Mortgage other than the ground lessor’s related fee interest and Liens for taxes not yet due and
payable and as otherwise set forth in the Title Insurance. 
  
 (g)
Each Loan Party’s interest in each Ground Lease is assignable to Administrative Agent upon notice to, but without the consent of, the ground lessor thereunder (or, if any such consent is required, it has been obtained prior to the date hereof)
except to the extent non-assignability could not reasonably be expected to cause a Material Property Event. 
  
 ARTICLE VII. 
 AFFIRMATIVE COVENANTS 
  
 So long as any Lender shall have any Commitment hereunder, any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, Parent and Borrower each covenant and agree to perform, observe, and comply with the following covenants applicable to such Person and, to the
extent such covenants apply to any Person not party to this Agreement, then Parent and Borrower each covenant and agree, to the extent not otherwise provided herein, to cause such Person to perform, observe, and comply with the following covenants
applicable to such Person: 
  
 7.01 Financial Statements.
Parent and Borrower shall deliver to Administrative Agent and each Lender, in form and detail satisfactory to Administrative Agent and the Required Lenders: 
  
 (a) as soon as available, but in any event within ninety (90) days after the end of each fiscal year of Parent, a consolidated balance sheet of Parent and
its Subsidiaries as at the end of such fiscal year, along with the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year, setting forth in each case in comparative form the figures for
the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, audited and accompanied by a report and opinion of an independent certified public accountant of nationally recognized standing reasonably acceptable to the
Required Lenders, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as
to the scope of such audit; 
  
 (b) as soon as available, but in
any event within (i) forty-five (45) days after the end of each of the first three (3) fiscal quarters of each fiscal year of Parent, and (ii) (A) within forty-five (45) days after the end of each of the first three (3) fiscal quarters of each
fiscal year of Borrower, and (B) within ninety (90) days after the end of the last fiscal quarter of each fiscal year of Borrower, a consolidated balance sheet of (x) Parent and its Subsidiaries as at the end of each such first three (3) fiscal
quarters, and (y) Borrower and its Subsidiaries as at the end of such fiscal quarter, in each case along with the related 

  

 58 

 
consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal quarters and for the portion of Parent’s or
Borrower’s, as applicable, fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all in
reasonable detail and certified by a Responsible Officer of Parent or Borrower, as applicable, as fairly presenting the financial condition, results of operations, shareholders’ equity and cash flows of Parent or Borrower, as applicable, and
its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes; and 
  
 (c) within forty-five (45) days after the date of this Agreement, a pro forma consolidated balance sheet of Parent and its Subsidiaries, along with the
related pro forma consolidated statements of income or operations for such fiscal quarter ending June 30, 2004. 
  
 7.02 Certificates; Other Information. Parent and Borrower shall, and shall cause each of their Subsidiaries to, deliver to Administrative Agent and
each Lender, in form and detail satisfactory to Administrative Agent and the Required Lenders: 
  
 (a) concurrently with the delivery of the financial statements referred to in Section 7.01(a), a certificate of its independent certified public accountants certifying such financial statements and stating that
in making the examination necessary therefor no knowledge was obtained of any Default or, if any such Default shall exist, stating the nature and status of such event; 
  
 (b) concurrently with the delivery of the financial statements referred to in Sections 7.01(a) and (b), (i) a
duly completed Compliance Certificate signed by a Responsible Officer of Borrower, and (ii) a Borrowing Base Report; 
  
 (c) promptly after any request by Administrative Agent or any Lender, copies of any detailed audit reports, management letters, or recommendations
submitted to the board of directors (or the audit committee of the board of directors) of Parent or Borrower by independent accountants in connection with the accounts or books of Parent, Borrower, or any Subsidiary, or any audit of any of them;

  
 (d) promptly after the same are available, copies of each
annual report, proxy, or financial statement or other report or communication sent to the stockholders of Parent, and copies of all annual, regular, periodic, and special reports and registration statements which Parent may file or be required to
file with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934, and not otherwise required to be delivered to Administrative Agent pursuant hereto; 
  
 (e) promptly, such additional information regarding the business, financial, or corporate affairs of Parent, Borrower, or
any Subsidiary, or compliance with the terms of the Loan Documents, as Administrative Agent or any Lender may from time to time reasonably request. 
  
 Documents required to be delivered pursuant to Section 7.01(a) or (b) or Section 7.02(d) (to the extent any such documents are
included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which Parent or Borrower posts such documents, or provides a link thereto on
Parent’s website on the Internet at the website address listed on Schedule 11.02; or (ii) on which such documents are posted on Borrower’s behalf on IntraLinks/IntraAgency or another relevant website, if any, to which each Lender
and Administrative Agent have access (whether a commercial, third-party website or whether sponsored by Administrative Agent); provided that: (i) Parent and Borrower shall deliver paper copies of such documents to Administrative Agent or any
Lender that requests Parent and Borrower to deliver such paper copies until a written request to cease delivering paper copies is given by Administrative Agent or 

  

 59 

 
such Lender and (ii) Borrower shall notify (which may be by facsimile or electronic mail) Administrative Agent and each Lender of the posting of any such
documents and provide to Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents. Notwithstanding anything contained herein, in every instance Borrower shall be required to provide paper copies of the
Compliance Certificates required by Section 7.02(c) to Administrative Agent and each of the Lenders. Except for such Compliance Certificates, Administrative Agent shall have no obligation to request the delivery or to maintain copies of the
documents referred to above, and in any event shall have no responsibility to monitor compliance by Borrower with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of
such documents. 
  
 7.03 Notices. Parent and Borrower
shall, and shall cause each of their Subsidiaries to, promptly notify Administrative Agent and each Lender: 
  
 (a) of the occurrence of any Default; 
  
 (b) of any matter that has resulted or could reasonably be expected to result in a Material Adverse Effect, including (i) breach or non-performance of, or
any default under, a Contractual Obligation of Borrower or any Subsidiary, (ii) any dispute, litigation, investigation, proceeding or suspension between Borrower or any Subsidiary and any Governmental Authority, or (iii) the commencement of, or any
material development in, any litigation or proceeding affecting Borrower or any Subsidiary, including pursuant to any applicable Environmental Laws; 
  
 (c) of the occurrence of any ERISA Event; 
  
 (d) of any material change in accounting policies or financial reporting practices by Parent or any Subsidiary; 
  
 (e) any litigation, arbitration, or governmental investigation or proceeding
instituted or threatened against any Borrowing Base Property, and any material development therein; 
  
 (f) any actual or threatened condemnation of any material portion of any Borrowing Base Property, any negotiations with respect to any such taking, or any
substantial loss of or substantial damage to the Borrowing Base Property; 
  
 (g) any material labor controversy pending or threatened against Parent, any of its Subsidiaries, or any material contractor, and any material development in any labor controversy; 
  
 (h) any notice received by any Loan Party with respect to the cancellation,
material alteration, or non-renewal of any required insurance coverage maintained with respect to any Borrowing Base Property; 
  
 (i) any required and material permit, license, certificate, or approval with respect to the Borrowing Base Property lapses or ceases to be in full force
and effect which is not replaced with a similar permit, license, certificate, or approval within thirty days of such lapse or failure to be in full force and effect; and 
  
 (j) any claim from any person that any Borrowing Base Property, or any use, activity, operation, or maintenance thereof or
thereon, is not in material compliance with any Law. 
  
 Each
notice pursuant to this Section 7.03 shall be accompanied by a statement of a Responsible Officer of Borrower or Parent, as applicable, setting forth details of the occurrence referred to therein and 

  

 60 

 
stating what action Borrower or Parent, as applicable, has taken and proposes to take with respect thereto. Each notice pursuant to Section 7.03(a)
shall describe with particularity any and all provisions of this Agreement and any other Loan Document that have been breached. 
  
 7.04 Payment of Obligations. Parent and Borrower shall, and shall cause each of their Subsidiaries to, pay and discharge as the same shall become
due and payable, all its obligations and liabilities, including: (a) all tax liabilities, assessments, and governmental charges, or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate
proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by Borrower or such Subsidiary; (b) all lawful claims which, if unpaid, would by law become a Lien upon its property; and (c) all Indebtedness, as
and when due and payable, but subject to any subordination provisions contained in any instrument or agreement evidencing such Indebtedness. 
  
 7.05 Preservation of Existence, Etc. Parent and Borrower shall, and shall cause each of their Subsidiaries to: (a) preserve, renew, and
maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization except in a transaction permitted by Sections 8.04 or 8.05; (b) take all reasonable action to maintain all
rights, privileges, permits, licenses, and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; and (c) preserve or
renew all of its registered patents, trademarks, trade names, and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect. 
  
 7.06 Maintenance of Properties. Parent and Borrower shall, and shall cause each of their Subsidiaries to: (a)
maintain, preserve and protect all of its material properties and equipment necessary in the operation of its business in good working order and condition, ordinary wear and tear excepted; and (b) make all necessary repairs thereto and renewals and
replacements thereof except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. 
  
 7.07 Compliance with Laws. Parent and Borrower shall, and shall cause each of their Subsidiaries to, comply in all material respects with the
requirements of all Laws and all orders, writs, injunctions, and decrees applicable to it or to its business or property, except in such instances in which (a) such requirement of Law or order, writ, injunction, or decree is being contested in good
faith by appropriate proceedings diligently conducted, or (b) the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect. 
  
 7.08 Books and Records. Parent and Borrower shall, and shall cause each of their Subsidiaries to: (a) maintain proper
books of record and account, in which full, true and correct entries in conformity with GAAP consistently applied shall be made of all financial transactions and matters involving the assets and business of Parent or such Subsidiary, as the case may
be including in which full, true and correct entries shall be promptly made with respect to the Borrowing Base Properties and the operation thereof; and (b) maintain such books of record and account in material conformity with all applicable
requirements of any Governmental Authority having regulatory jurisdiction over Parent or such Subsidiary, as the case may be. 
  
 7.09 Inspection Rights. Parent and Borrower shall, and shall cause each of their Subsidiaries to, permit representatives and independent
contractors of Administrative Agent and each Lender to visit and inspect and photograph the Borrowing Base Properties, to examine their corporate, financial, and operating records, and all recorded data of any kind or nature, regardless of the
medium of recording including, without limitation, all software, writings, plans, specifications and schematics, and make copies thereof or abstracts therefrom, and to discuss their affairs, finances, and accounts with its directors, officers, and
independent public accountants, not more than one (1) time in any period of twelve (12) 

  

 61 

 
consecutive months, at reasonable times during normal business hours, and upon reasonable advance notice to Borrower and, with respect to Administrative
Agent, all at the expense of Borrower; provided, however, that when an Event of Default exists Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing as
often as may reasonably be desired, at the expense of Borrower at any time during normal business hours and without advance notice. Any inspection or audit of any Borrowing Base Property or the books and records, including recorded data of any kind
or nature, regardless of the medium of recording including, without limitation, software, writings, plans, specifications and schematics of a Loan Party, or the procuring of documents and financial and other information, by Administrative Agent on
behalf of itself or on behalf of Lenders shall be for Administrative Agent’s and Lenders’ protection only, and shall not constitute any assumption of responsibility to any Loan Party or anyone else with regard to the condition,
construction, maintenance, or operation of any Borrowing Base Property nor Administrative Agent’s approval of any certification given to Administrative Agent nor relieve any Loan Party of any of its obligations. 
  
 7.10 Use of Proceeds. Borrower shall use the proceeds of the Credit
Extensions for (a) working capital, capital expenditures, and general corporate purposes not in contravention of any Law or of any Loan Document, and (b) to finance acquisitions of Properties permitted hereunder. 
  
 7.11 Other Property Information. Parent and Borrower shall, and shall
cause each of their Subsidiaries to, furnish to Administrative Agent from time to time upon Administrative Agent’s reasonable request (a) copies of all contracts, bills of sale, statements, receipts, or other documents under which a Loan Party
claims title to any materials, fixtures, or articles of personal property incorporated or to be incorporated into the Improvements or subject to the Liens of the Mortgages, (b) annual budgets and revisions thereof showing the estimated costs and
expenses to be incurred in connection with the Borrowing Base Properties, and (c) such other information relating to the Improvements or the Borrowing Base Properties. 
  
 7.12 Reports and Testing. Parent and Borrower shall, and shall cause each of their Subsidiaries to promptly (a)
deliver to Administrative Agent copies of all reports, studies, inspections and tests made on the Borrowing Base Properties, the Improvements, or any materials to be incorporated into the Improvements, and (b) make such additional tests on the
Borrowing Base Properties, the Improvements, or any materials to be incorporated into the Improvements as Administrative Agent reasonably requires. 
  
 7.13 Environmental Matters. Each Loan Party shall: 
  
 (a) Violations. Not cause, commit, permit, or allow to continue (i) any violation of any Environmental Requirement which could reasonably be
expected to cause a Material Property Event: (A) by any Loan Party or by any Person; and (B) by or with respect to the Borrowing Base Properties or any use of or condition or activity on the Borrowing Base Properties, or (ii) the attachment of any
environmental liens to the Borrowing Base Properties. No Loan Party will place, install, dispose of, or release, or cause, permit, or allow the placing, installation, disposal, spilling, leaking, dumping, or release of, any Hazardous Material or
storage tank (or similar vessel) on the Borrowing Base Properties and will keep the Borrowing Base Properties free of Hazardous Material to the extent such action could reasonably be expected to cause a Material Property Event. 
  
 (b) Notice to Administrative Agent. Promptly deliver to Administrative
Agent a copy of each report pertaining to any Borrowing Base Property or to any Loan Party prepared by or on behalf of such Loan Party pursuant to any Environmental Requirement. Each Loan Party shall immediately advise Administrative Agent in
writing of any Environmental Claim or of the discovery of any Hazardous Material on any Borrowing Base Property, as soon as such Loan Party first obtains knowledge thereof, 

  

 62 

 
including a full description of the nature and extent of the Environmental Claim and/or Hazardous Material and all relevant circumstances. 
  
 (c) Site Assessments and Information. If Administrative Agent shall
ever have reason to believe that any Hazardous Material affects any Borrowing Base Property, or if any Environmental Claim is made or threatened, if requested by Administrative Agent, at Borrower’s expense, provide to Administrative Agent from
time to time, in each case within thirty (30) days after Administrative Agent’s request, an Environmental Assessment (hereinafter defined) made after the date of Administrative Agent’s request. As used in this Agreement, the term
“Environmental Assessment” means a report (including all drafts thereof) of an environmental assessment of such Borrowing Base Property and of such scope (including but not limited to the taking of soil borings and air and
groundwater samples and other above and below ground testing) as Administrative Agent may reasonably request, by a consulting firm acceptable to Administrative Agent and made in accordance with Administrative Agent’s established guidelines.
Each Loan Party will cooperate with each consulting firm making any such Environmental Assessment and will supply to the consulting firm, from time to time and promptly on request, all information available to such Loan Party to facilitate the
completion of the Environmental Assessment. If any Loan Party fails to furnish Administrative Agent within ten (10) days after Administrative Agent’s request with a copy of an agreement with an acceptable environmental consulting firm to
provide such Environmental Assessment, or if any Loan Party fails to furnish to Administrative Agent such Environmental Assessment within thirty (30) days after Administrative Agent’s request, Administrative Agent may cause any such
Environmental Assessment to be made at Borrower’s expense and risk. Administrative Agent and its designees are hereby granted access to the Borrowing Base Properties at any time or times, upon reasonable notice (which may be written or oral),
and a license which is coupled with an interest and irrevocable, to make or cause to be made such Environmental Assessments. Administrative Agent may disclose to interested parties any information Administrative Agent ever has about the
environmental condition or compliance of the Borrowing Base Properties, but shall be under no duty to disclose any such information except as may be required by Law. Administrative Agent shall be under no duty to make any Environmental Assessment of
the Borrowing Base Properties, and in no event shall any such Environmental Assessment by Administrative Agent be or give rise to a representation that any Hazardous Material is or is not present on the Borrowing Base Properties, or that there has
been or shall be compliance with any Environmental Requirement, nor shall Borrower or any other person be entitled to rely on any Environmental Assessment made by Administrative Agent or at Administrative Agent’s request. None of Administrative
Agent nor any Lender owes any duty of care to protect any Loan Party or any other Person against, or to inform them of, any Hazardous Material or other adverse condition affecting the Borrowing Base Properties. 
  
 (d) Remedial Actions. If any Hazardous Material is discovered on any
Borrowing Base Property at any time and regardless of the cause, (i) promptly at Borrower’s sole risk and expense remove, treat, and dispose of the Hazardous Material in compliance with all applicable Environmental Requirements and solely under
the applicable Loan Party’s name (or if removal is prohibited by any Environmental Requirement, take whatever action is required by any Environmental Requirement), in addition to taking such other action as is necessary to have the full use and
benefit of such Borrowing Base Property as contemplated by the Loan Documents, and provide Administrative Agent with satisfactory evidence thereof, and (ii) if requested by Administrative Agent, provide to Administrative Agent within thirty (30)
days of Administrative Agent’s request a bond, letter of credit, or other financial assurance evidencing to Administrative Agent’s satisfaction that all necessary funds are readily available to pay the costs and expenses of the actions
required by subsection (i) preceding and to discharge any assessments or liens established against such Borrowing Base Property as a result of the presence of the Hazardous Material on the Borrowing Base Property. Within fifteen (15) days
after completion of such remedial actions, each Loan Party shall obtain and deliver to Administrative Agent an Environmental Assessment of such Borrowing Base Property made after such completion and confirming to 

  

 63 

 
Administrative Agent’s satisfaction that all required remedial action as stated above has been taken and successfully completed and that there is no
evidence or suspicion of any contamination or risk of contamination on the Borrowing Base Property or any adjacent property, or of violation of any Environmental Requirement, with respect to any such Hazardous Material. Administrative Agent on
behalf of Lenders may, but shall never be obligated to, remove or cause the removal of any Hazardous Material from the Borrowing Base Property (or if removal is prohibited by any Environmental Requirement, take or cause the taking of such other
action as is required by any Environmental Requirement) if the Loan Parties fail to promptly commence such remedial actions following discovery and thereafter diligently prosecute the same to the satisfaction of Administrative Agent (without
limitation of the rights of Administrative Agent on behalf of Lenders to declare an Event of Default and to exercise all rights and remedies available by reason thereof); and Administrative Agent and its designees are hereby granted access to the
Borrowing Base Properties at any time or times, upon reasonable notice (which may be written or oral), and a license which is coupled with an interest and irrevocable, to remove or cause such removal or to take or cause the taking of any such other
action. 
  
 7.14 Contracts. Parent and Borrower shall, and
shall cause each of their Subsidiaries to, perform all of its obligations under any construction, architectural design, management, brokerage or contract relating to the Borrowing Base Properties, and continue to be liable for all with respect
thereto. 
  
 7.15 Insurance. Parent and Borrower shall, or
shall cause each of their Subsidiaries or Managers to, obtain and maintain at Borrower’s sole expense: (a) property insurance with respect to all insurable property, against loss or damage by fire, lightning, windstorm, explosion, hail, tornado
and such additional hazards as are presently included in special form (also known as “all-risk”) coverage and against any and all acts of terrorism and such other insurable hazards as Administrative Agent may require, in an amount not less
than one hundred percent (100%) of the full replacement cost, including the cost of debris removal, without deduction for depreciation and sufficient to prevent Parent or any Subsidiary and Administrative Agent and Lenders from becoming coinsurers;
(b) if and to the extent any portion of the Improvements is, under the Flood Disaster Protection Act of 1973 (“FDPA”), as it may be amended from time to time, in a Special Flood Hazard Area, within a Flood Zone designated A or V in
a participating community, a flood insurance policy in an amount required by Administrative Agent, but in no event less than the amount sufficient to meet the requirements of applicable Law and the FDPA, as such requirements may from time to time be
in effect; (c) general liability insurance, on an “occurrence” basis against claims for “personal injury” liability, including bodily injury, death, or property damage liability, for the benefit of Parent or any subsidiary, as
applicable, as named insured and Administrative Agent for the benefit of Lenders as additional insured; (d) statutory workers’ compensation insurance with respect to any work on or about any of the Borrowing Base Properties (including
employer’s liability insurance, if required by Administrative Agent), covering all employees of Borrower and any contractor; and (e) such other insurance on the Borrowing Base Properties and endorsements as may from time to time be required by
Administrative Agent (including but not limited to soft cost coverage, automobile liability insurance, business interruption insurance, or delayed rental insurance, boiler and machinery insurance, earthquake insurance, wind insurance, sinkhole
coverage, and/or permit to occupy endorsement) and against other insurable hazards or casualties which at the time are commonly insured against in the case of premises similarly situated, due regard being given to the height, type, construction,
location, use and occupancy of buildings and Improvements. All insurance policies shall be issued and maintained by insurers, in amounts, with deductibles, limits and retentions, and in forms satisfactory to Administrative Agent. All insurance
companies must be licensed to do business in the state in which the Borrowing Base Property is located and must have an A. M. Best Company financial and performance ratings of A-:IX or better. All insurance policies maintained, or caused to be
maintained, with respect to the Property, except for general liability insurance, shall provide that each such policy shall be primary without right of contribution from any other insurance that may be carried, Administrative Agent or any Lender and
that all of the provisions thereof, except the limits of liability, shall operate in the same 

  

 64 

 
manner as if there were a separate policy covering each insured. If any insurer which has issued a policy of hazard, liability, or other insurance required
pursuant to this Agreement or any other Loan Document becomes insolvent or the subject of any petition, case, proceeding or other action pursuant to any Debtor Relief Law, or if in Administrative Agent’s reasonable opinion the financial
responsibility of such insurer is or becomes inadequate, Parent and Borrower shall, and shall cause their Subsidiaries to, in each instance promptly upon its discovery thereof or upon the request of Administrative Agent therefor, and at
Borrower’s expense, promptly obtain and deliver to Administrative Agent a like policy (or, if and to the extent permitted by Administrative Agent, acceptable evidence of insurance) issued by another insurer, which insurer and policy meet the
requirements of this Agreement or such other Loan Document, as the case may be. Certificates of insurance or other evidence of each initial insurance policy shall be delivered to Administrative Agent at the time of execution of this Agreement, with
all premiums fully paid current, and each renewal or substitute policy (or evidence of insurance) shall be delivered to Administrative Agent, with all premiums fully paid current, at least ten (10) days before the termination of the policy it renews
or replaces. Parent and Borrower shall, and shall cause their Subsidiaries to pay all premiums on policies required hereunder as they become due and payable and promptly deliver to Administrative Agent evidence satisfactory to Administrative Agent
of the timely payment thereof. If any loss occurs at any time when Parent or Borrower has failed to perform its covenants and agreements in this paragraph with respect to any insurance payable because of loss sustained to any part of any Borrowing
Base Property, whether or not such insurance is required by Administrative Agent and the Lenders shall nevertheless be entitled to the benefit of all insurance covering the loss, to the same extent as if it had been made payable to Administrative
Agent for the benefit of Lenders. 
  
 7.16 Condemnation.
Parent and Borrower shall, and shall cause each of their Subsidiaries to, notify Administrative Agent immediately of any threatened or pending proceeding for condemnation affecting any Borrowing Base Property or arising out of damage to any
Borrowing Base Property, and the applicable Loan Party shall, at its expense, diligently prosecute any such proceedings. Administrative Agent for the benefit of Lenders shall have the right (but not the obligation) to participate in any such
proceeding and to be represented by counsel of its own choice. Administrative Agent for the benefit of Lenders shall be entitled to receive all sums which may be awarded or become payable to a Loan Party for the condemnation of a Borrowing Base
Property, or any part thereof, for public or quasi-public use, or by virtue of private sale in lieu thereof, and any sums which may be awarded or become payable to a Loan Party for injury or damage to any Borrowing Base Property; provided
that Administrative Agent for the benefit of the Lenders shall only be entitled to receive sums equal to the Total Outstandings at the time such sums are received by a Loan Party. Each Loan Party shall, promptly upon request of Administrative
Agent, execute such additional assignments and other documents as may be necessary from time to time to permit such participation and to enable Administrative Agent to collect and receipt for any such sums. All such sums are hereby assigned to
Administrative Agent for the benefit of Lenders, and shall, after deduction therefrom of all reasonable expenses actually incurred by Administrative Agent, including attorneys’ fees, at Administrative Agent’s option be (a) released to a
Loan Party, or (b) applied (upon compliance with such terms and conditions as may be required by Administrative Agent) to repair or restoration of the Borrowing Base Property so affected, or (c) applied to the payment of the Obligations in such
order and manner as Administrative Agent, in its sole discretion, may elect, whether or not due. Any amounts not applied in accordance with clause (a), (b), or (c) of the foregoing sentence shall be remitted to the applicable Loan Party. In any
event the unpaid portion of the Obligations shall remain in full force and effect and the payment thereof shall not be excused. Administrative Agent shall not be, under any circumstances, liable or responsible for failure to collect or to exercise
diligence in the collection of any such sum or for failure to see to the proper application of any amount paid over to a Loan Party. Administrative Agent on behalf of Lenders is hereby authorized, in the name of a Loan Party, to execute and deliver
valid acquittances for, and to appeal from, any such award, judgment or decree. All costs and expenses (including but not limited to attorneys’ fees) incurred by Administrative 

  

 65 

 
Agent in connection with any condemnation shall be a demand obligation owing by Borrower (which Borrower hereby promises to pay) to Administrative Agent
pursuant to this Agreement. 
  
 7.17 Title and Permitted
Encumbrances. Each Loan Party shall maintain, lawful, good, and marketable title to the Borrowing Base Properties, and every part thereof, and the right to convey the same, free and clear of all liens, charges, claims, security interests, and
encumbrances except for Liens permitted by Section 8.01. Each Loan Party, and its successors and assigns, will warrant generally and forever defend title to the Borrowing Base Properties, subject as aforesaid, to Administrative Agent for the
benefit of Lenders and their successors or substitutes and assigns, against the claims and demands of all persons claiming or to claim the same or any part thereof. Each Loan Party will punctually pay, perform, observe, and keep all covenants,
obligations, and conditions in or pursuant to any Liens permitted by Section 8.01 and will not modify or permit modification of any Liens permitted by Section 8.01 without the prior written consent of Administrative Agent or any
Lender. 
  
 7.18 Taxes and Other Impositions. Each Loan
Party shall pay, or cause to be paid, all taxes, assessments and other charges or levies imposed upon or against or with respect to the Borrowing Base Properties or the ownership, use, occupancy, or enjoyment of any portion thereof, or any utility
service thereto, as the same become due and payable, including but not limited to all real estate taxes assessed against the Borrowing Base Properties or any part thereof, and shall deliver promptly to Administrative Agent such evidence of the
payment thereof as Administrative Agent may require. 
  
 7.19
Compliance with Laws. Each Loan Party shall cause the Borrowing Base Properties and the use, operation, and maintenance thereof and all activities thereon at all times to comply with all applicable Laws. No Borrowing Base Property shall be
dependent on any other property or premises or any interest therein other than such Borrowing Base Property to fulfill any requirement of any Law. No improvement upon or use of any part of any Borrowing Base Property shall become a nonconforming use
under any zoning Law or similar Law or ordinance. Each Loan Party shall preserve in force all requisite zoning, utility, building, health, environmental, and operating permits from the Governmental Authorities having jurisdiction over the Borrowing
Base Properties. 
  
 If any Loan Party receives a notice or claim
from any person that any Borrowing Base Property, or any use, activity, operation, or maintenance thereof or thereon, is not in compliance with any Law, then such Loan Party will promptly furnish a copy of such notice or claim to Administrative
Agent. 
  
 7.20 Maintenance, Repair, and
Restoration. Each Loan Party shall keep the Borrowing Base Properties in first class order, repair, operating condition, and appearance, causing all necessary repairs, renewals, replacements, additions, and improvements to be promptly made, and
not allow any of the Borrowing Base Properties to be misused, abused or wasted or to deteriorate. Notwithstanding the foregoing, no Loan Party will, without the prior written consent of Administrative Agent, (a) remove from the Borrowing Base
Properties any fixtures or personal property except such as is replaced by a Loan Party by an article of equal suitability and value, owned by such Loan Party, free and clear of any Lien or security interest, or (b) make any structural alteration to
the Borrowing Base Properties or any other alteration thereto which impairs the value thereof. If any act or occurrence of any kind or nature (including any condemnation or any casualty for which insurance was not obtained or obtainable) shall
result in damage to or loss or destruction of any Borrowing Base Property, then the applicable Loan Party shall give prompt notice thereof to Administrative Agent and such Loan Party shall promptly, at its sole cost and expense and regardless of
whether insurance or condemnation proceeds (if any) shall be available or sufficient for the purpose, secure such Borrowing Base Property as necessary and commence and continue diligently to completion to restore, repair, replace and rebuild
Borrowing Base Property as nearly as possible to its value, condition and character immediately prior to the damage, loss, or destruction. 
  

 66 

 7.21 Operation of Property. Each Loan Party shall operate or cause the operation of the Borrowing
Base Properties in a good and workmanlike manner and in accordance with all Laws and will pay all fees or charges of any kind in connection therewith. Each Loan Party will keep the Borrowing Base Properties occupied so as not to impair the insurance
carried thereon, and will not use or occupy or conduct any activity on, or allow the use or occupancy of or the conduct of any activity on, the Borrowing Base Properties in any manner which violates any Law or which constitutes a public or private
nuisance or which makes void, voidable, or cancelable, or increases the premium of, any insurance then in force with respect thereto. No Loan Party will initiate or permit any zoning reclassification of the Borrowing Base Properties or seek any
variance under existing zoning ordinances applicable to the Borrowing Base Properties or use or permit the use of the Borrowing Base Properties in such a manner which would result in such use becoming a nonconforming use under applicable zoning
ordinances or other Law. No Loan Party will impose any easement, restrictive covenant, or encumbrance upon any Borrowing Base Property, execute or file any subdivision plat or condominium declaration affecting any Borrowing Base Property, or consent
to the annexation of any Borrowing Base Property to any municipality, without the prior written consent of Administrative Agent. No Loan Party will do or suffer to be done any act whereby the value of any part of any Borrowing Base may be lessened.
Each Loan Party will preserve, protect, renew, extend, and retain all material rights and privileges granted for or applicable to the Borrowing Base Properties. Without the prior written consent of Administrative Agent, there shall be no drilling or
exploration for or extraction, removal or production of any mineral, hydrocarbon, gas, natural element, compound or substance (including sand and gravel) from the surface or subsurface of the Borrowing Base Properties regardless of the depth thereof
or the method of mining or extraction thereof. Each Loan Party will cause all debts and liabilities of any character (including without limitation all debts and liabilities for labor, material, and equipment (including software embedded therein) and
all debts and charges for utilities servicing each Borrowing Base Property) incurred in the construction, maintenance, operation and development of the Borrowing Base Properties to be promptly paid. 
  
 7.22 Delivery of Leasing Information and Documents. Each Loan Party
shall promptly (a) deliver to Administrative Agent such monthly rent rolls with respect to Leases, reports, operating statements, and financial statements for tenants other than residential tenants or other leasing information as Administrative
Agent from time to time may request, and (b) obtain and deliver to Administrative Agent such estoppel certificates and subordination and attornment agreements executed by such tenants (and guarantors, if any) in such forms as Administrative Agent
from time to time may require. 
  
 7.23 Income from the
Borrowing Base Properties. Each Loan Party shall first apply all income from Leases, and all other income derived from the Borrowing Base Properties, to pay costs and expenses associated with the ownership, maintenance, development, operating,
and marketing of the Borrowing Base Properties and Improvements, including all amounts then required to be paid under the Loan Documents, before using or applying such income for any other purpose. 
  
 7.24 Compliance and Default. Each Loan Party shall cause all tenants
having the right to do so to approve all Plans and all changes thereto, the Improvements, and all other aspects of the Borrowing Base Properties requiring tenants’ approval, and promptly notify Administrative Agent in writing of any failure by
any party to perform any material obligation under any Lease, any event or condition which would permit a tenant to terminate or cancel a Lease, or any notice given by a tenant with respect to the foregoing, specifying in each case the action a Loan
Party has taken or will take with respect thereto. 
  
 7.25
Concerning Leases, Operating Leases, and Rents. Each Loan Party shall: (a) maintain good title to, and ownership of the entire landlord’s interest in, the Leases, Operating Leases, and Rents; (b) maintain all Leases and Operating Leases as
valid and enforceable, and in full force and effect, unmodified except as stated therein; (c) not default under any Lease or Operating Lease; (d) not assign mortgage, pledge or otherwise encumber and allow no other person to acquire any right,
title, or interest 

  

 67 

 
in any Rents, Operating Leases, or Leases; (e) waive, release, discount, set off, or compromise any Rents; (f) except as stated in the Leases or Operating
Lease, accrue any funds or deposits from any tenant other than Rents; (g) perform all of its obligations under the Leases or Operating Lease and enforce the tenants’ obligations under the Leases and Operating Leases to the extent enforcement is
prudent under the circumstances; (h) not without the prior written consent of Administrative Agent, enter into any Lease or Operating Lease after the date hereof, or waive, release, discount, set off, compromise, reduce, or defer any Rent, receive
or collect Rents more than one (1) month in advance, grant any rent-free period to any tenant, reduce any Lease or Operating Lease term or waive, release or otherwise modify any other material obligation under any Lease or Operating Lease, renew or
extend any Lease or Operating Lease except in accordance with a right of the tenant thereto in such Lease or Operating Lease, approve or consent to an assignment of a Lease or Operating Lease or a subletting of any part of the premises covered by a
Lease or Operating Lease, or settle or compromise any claim against a tenant under a Lease or Operating Lease in bankruptcy or otherwise; (i) not, without the prior written consent of Administrative Agent, terminate or consent to the cancellation or
surrender of any Lease or Operating Lease having an unexpired term of one (1) year or more; (j) not execute any Lease or Operating Lease except in accordance with the Loan Documents and for actual occupancy by the tenant thereunder; (k) give prompt
notice to Administrative Agent, as soon as any Loan Party first obtains notice, of any claim, or the commencement of any action, by any tenant or subtenant under or with respect to a Lease or Operating Lease regarding any claimed damage, default,
diminution of or offset against Rent, cancellation of the Lease or Operating Lease, and the applicable Loan Party shall defend, at its expense, any proceeding pertaining to any Lease or Operating Lease, including, if Administrative Agent so
requests, any such proceeding to which Administrative Agent or any Lender is a party; (l) as often as requested by Administrative Agent, within ten (10) days of each request, deliver to Administrative Agent a complete rent roll of each Borrowing
Base Property in such detail as Administrative Agent may require and financial statements of the tenants, subtenants, and guarantors under the Leases or Operating Leases to the extent available to any Loan Party; (m) promptly upon request by
Administrative Agent, deliver to Administrative Agent executed originals of all Leases and copies of all records relating thereto; and (n) allow no merger of the leasehold estates created by the Leases or Operating Leases, with the fee estate of any
Borrowing Base Property without the prior written consent of Administrative Agent. 
  
 7.26 Property Management. Each Loan Party shall (a) (i) promptly perform and observe, and require (or in the case of an Affiliate cause) the applicable Operating Lessee to promptly perform and observe, all of
the covenants required to be performed and observed under each Management Agreement and do all things necessary to preserve and to keep unimpaired its material rights thereunder except where failure could not reasonably be expected to cause a
Material Property Event; (ii) promptly notify Administrative Agent of any material default or termination event under any Management Agreement of which it is aware; (iii) promptly deliver to Administrative Agent a copy of any notice of default or
termination event or other material notice received by an Operating Lessee under any Management Agreement; (iv) require (or in the case of an Affiliate cause) the applicable Operating Lessee to promptly give notice to Administrative Agent of any
notice or information that such Operating Lessee receives which indicates that any Manager is terminating the related Management Agreement or that any Manager is otherwise discontinuing its management of the applicable Borrowing Base Property other
than the scheduled end of the Management Agreement term; (v) promptly enforce the performance and observance of all of the covenants required to be performed and observed by each Operating Lessee under each Management Agreement; and (vi) require (or
in the case of an Affiliate cause) each Operating Lessee to operate each Borrowing Base Property under the terms and conditions of the applicable Management Agreement. 
  
 (b) If at any time, (i) any Manager shall become insolvent or a debtor in a bankruptcy proceeding, (ii) an Event of Default
has occurred and is continuing, or (iii) a default or termination event reasonably expected to cause a Material Property Event has occurred and is continuing under any 

  

 68 

 
Management Agreement, and in each case if grounds for such termination exist under the affected Management Agreement, and subject to any limitations under
and as otherwise provided in any Assignment of Management Agreement, each Loan Party shall, at the request of Administrative Agent, terminate, or require (or in the case of an Affiliate cause) the applicable Operating Lessee to terminate (A) in the
case of (i) above, to the extent possible as a matter of Law each applicable Management Agreement, or (B) in all other cases, each Management Agreement requested by Administrative Agent in its sole discretion, upon thirty (30) days prior
notice to each applicable Manager and replace each such Manager with a Qualified Manager approved by Administrative Agent on terms and conditions satisfactory to Administrative Agent, it being understood and agreed that the management fee for such
replacement manager shall not exceed then prevailing market rates for comparable properties. 
  
 (c) In addition to the foregoing, in the event that Administrative Agent, in Administrative Agent’s reasonable discretion, at any time prior to the termination of the Assignment of Management Agreement with
respect to any Borrowing Base Property, determines that any Borrowing Base Property is not being managed in accordance with generally accepted management practices for projects similarly situated, Administrative Agent may deliver written notice
thereof to the applicable Loan Party and each applicable Manager, which notice shall specify with particularity the grounds for Administrative Agent’s determination. If Administrative Agent reasonably determines that the conditions specified in
Administrative Agent’s notice are not remedied to Administrative Agent’s reasonable satisfaction by the applicable Loan Party or such applicable Manager within thirty (30) days from the date of such notice or that the applicable Loan Party
or such applicable Manager have failed to diligently undertake correcting such conditions within such thirty (30) day period, except where failure could not reasonably be expected to cause a Material Property Event, Administrative Agent may direct
such Loan Party to terminate the applicable Management Agreement if grounds for such termination exist thereunder, and in accordance with and subject to any rights and/or limitations set forth in the applicable Assignment of Management Agreement, to
replace such applicable Manager with a Qualified Manager approved by Administrative Agent on terms and conditions satisfactory to Administrative Agent, it being understood and agreed that the management fee for such replacement manager shall not
exceed then prevailing market rates for comparable properties. 
  
 (d) No Loan Party shall, nor shall it permit any Operating Lessee to, without the prior written consent of Administrative Agent (which consent shall not be unreasonably withheld, conditioned or delayed): (i) surrender, terminate, or cancel
any Management Agreement or otherwise replace any Manager or enter into any other management agreement with respect to any Borrowing Base Property except to the extent the foregoing could not reasonably be expected to cause a Material Property
Event; (ii) reduce or consent to the reduction of the term of any Management Agreement except to the extent the foregoing could not reasonably be expected to cause a Material Property Event; (iii) increase or consent to the increase of the amount of
any management fees under any Management Agreement except to the extent the foregoing could not reasonably be expected to cause a Material Property Event; or (iv) otherwise modify, change, supplement, alter, amend, waive, or release any of its
rights and remedies under, any Management Agreement in any material respect except to the extent the foregoing could not reasonably be expected to cause a Material Property Event. In the event that any Loan Party or any Operating Lessees replaces
any Manager, such Manager shall be a Qualified Manager which delivers such estoppel letters, comfort letters, consents, or other conforming agreements as Administrative Agent may reasonably request. 
  
 7.27 Franchise Agreements. 
  
 (a) Each Borrowing Base Property shall be operated under the terms and
conditions of the applicable Franchise Agreement, if any, and each Loan Party shall, and shall cause each Affiliate Operating Lessee to, (i) pay all sums required to be paid by Operating Lessees under each Franchise 

  

 69 

 
Agreement, (ii) diligently perform, observe, and enforce all of the terms, covenants, and conditions of each Franchise Agreement on the part of an Operating
Lessee to be performed, observed, and enforced to the end that all things shall be done which are necessary to keep unimpaired the rights of each Operating Lessee under each Franchise Agreement except to the extent the foregoing could not reasonably
be expected to cause a Material Property Event, (iii) promptly notify Administrative Agent of the giving of any notice to an Operating Lessee of any default by such Operating Lessee in the performance or observance of any of the terms, covenants, or
conditions of any Franchise Agreement on the part of any Operating Lessee to be performed and observed and deliver to Administrative Agent a true copy of each such notice, and (iv) promptly deliver to Administrative Agent a copy of each financial
statement, business plan, capital expenditure plan, notice, report, and estimate received by it under any Franchise Agreement. 
  
 (b) No Loan Party shall, nor shall it permit any Operating Lessee to, without the prior consent of Administrative Agent, surrender any Franchise Agreement
or terminate or cancel any Franchise Agreement or modify, change, supplement, alter or amend any Franchise Agreement, in any respect, either orally or in writing. 
  
 (c) If an Operating Lessee shall default in the performance or observance of any material term, covenant, or condition of
any Franchise Agreement to be performed or observed, then, without limiting the generality of the other provisions of this Agreement, and without waiving or releasing Loan Parties from any of their obligations hereunder, Administrative Agent shall
have the right, but shall be under no obligation, to pay any sums and to perform any act or take any action as may be appropriate to cause all the terms, covenants, and conditions of such Franchise Agreement on the part of such Operating Lessee to
be performed or observed to be promptly performed or observed on behalf of such Operating Lessee, to the end that the rights of such Operating Lessee in, to, and under such Franchise Agreement shall be kept unimpaired and free from default.
Administrative Agent and any person designated by Administrative Agent shall have, and are hereby granted, the right to enter upon the applicable Borrowing Base Property at any time and from time to time for the purpose of taking any such action. If
any Franchisor shall deliver to Administrative Agent a copy of any notice sent to an Operating Lessee of default under any applicable Franchise Agreement, such notice shall constitute full protection to Administrative Agent for any action taken or
omitted to be taken by Administrative Agent in good faith, in reliance thereon. 
  
 (d) Any sums expended by Administrative Agent pursuant to this Section 7.18 shall bear interest at the Default Rate from the date such cost is incurred to the date of payment to Administrative Agent, shall be
deemed to constitute a portion of the Obligations, shall be secured by the Lien of the Mortgages and the other Loan Documents and shall be immediately due and payable upon demand by Administrative Agent therefor. 
  
 (e) Each Loan Party shall, promptly upon request of Administrative Agent (but
not more often than one (1) time in any period of twelve (12) consecutive months absent an Event of Default), use diligent good faith efforts to obtain and deliver an estoppel certificate from each Franchisor stating that (i) each applicable
Franchise Agreement is in full force and effect and has not been modified, amended, or assigned, (ii) neither such Franchisor nor any Operating Lessee is in default under any of the terms, covenants, or provisions of each applicable Franchise
Agreement and such Franchisor knows of no event which, but for the passage of time or the giving of notice or both, would constitute an event of default under each applicable Franchise Agreement, (iii) neither such Franchisor nor any Operating
Lessee has commenced any action or given or received any notice for the purpose of terminating any applicable Franchise Agreement, and (iv) all sums due and payable to such Franchisor under each applicable Franchise Agreement have been paid in full.

  

 70 

 (f) In the event that any Management Agreement also serves as a franchise agreement or contains
provisions typically contained in franchise agreements, then the provisions of this Section 7.18 shall apply to such Management Agreement. 
  
 (g) In the event that any Borrowing Base Property is at any time operated under a Franchise Agreement that is not effective as of the Closing Date
(including a springing Franchise Agreement which is in place but not effective as of the Closing Date), then the Franchisor party to such Franchise Agreement shall deliver such estoppel letters, comfort letters, consents, or other conforming
agreements as Administrative Agent may reasonably request. 
  
 7.28 Operating Leases. No Loan Party shall, without the prior written consent of Administrative Agent, enter into, renew, extend, amend, or modify the term of any Operating Lease, except for new Properties added as Borrowing Base
Properties in accordance with Section 4.02. 
  
 7.29
REIT Status. Parent (including its organization and methods of operations and those of its Subsidiaries) shall at all times qualify as a REIT. 
  
 7.30 Ground Leases. (a) Each Loan Party shall (i) pay all Rents, additional Rents, and other sums required to be paid by such Loan Party, as tenant
under and pursuant to the provisions of the Ground Leases, (ii) diligently perform and observe all of the terms, covenants, and conditions of the Ground Leases on the part of Borrower, as tenant thereunder, (iii) promptly notify Administrative Agent
of the giving of any notice by the landlord under any Ground Lease to any Loan Party of any default by a Loan Party, as tenant thereunder, and deliver to Administrative Agent a true copy of each such notice within five (5) Business Days of receipt,
and (iv) promptly notify Administrative Agent of any bankruptcy, reorganization, or insolvency of the landlord under any Ground Lease or of any notice thereof, and deliver to Administrative Agent a true copy of such notice within five (5) Business
Days of any Loan Party’s receipt. No Loan Party shall, without the prior consent of Administrative Agent, surrender the leasehold estate created by any Ground Lease or terminate or cancel any Ground Lease or modify, change, supplement, alter,
or amend any Ground Lease, either orally or in writing, and if any Loan Party shall default in the performance or observance of any term, covenant, or condition of any Ground Lease on the part of such Loan Party, as tenant thereunder, and shall fail
to cure the same prior to the expiration of any applicable cure period provided thereunder, Administrative Agent shall have the right, but shall be under no obligation, to pay any sums and to perform any act or take any action as may be appropriate
to cause all of the terms, covenants, and conditions of such Ground Lease on the part of any Loan Party to be performed or observed on behalf of such Borrower, to the end that the rights of such Borrower in, to, and under such Ground Lease shall be
kept unimpaired and free from default. If the landlord under any Ground Lease shall deliver to Administrative Agent a copy of any notice of default under such Ground Lease, such notice shall constitute full protection to Administrative Agent for any
action taken or omitted to be taken by Administrative Agent, in good faith, in reliance thereon. Each Loan Party shall exercise each individual option, if any, to extend or renew the term of any Ground Lease upon demand by Administrative Agent made
at any time within one (1) year prior to the last day upon which any such option may be exercised, and each Loan Party hereby expressly authorizes and appoint Administrative Agent its attorney-in-fact to exercise any such option in the name of and
upon behalf of such Loan Party, which power of attorney shall be irrevocable and shall be deemed to be coupled with an interest. 
  
 (b) Notwithstanding anything contained in any Ground Lease to the contrary, no Loan Party shall further sublet any portion of the Borrowing Base Property
that is subject to a Ground Lease (other than as permitted pursuant to the applicable terms and conditions hereof) without prior written consent of Administrative Agent. 
  

 71 

 (c) No Ground Lease may be canceled, terminated, surrendered, or amended without the prior, written
consent of Administrative Agent. 
  
 7.31 Subsidiary
Guaranties. Parent and Borrower shall cause each Subsidiary that is required to execute the Subsidiary Guaranty to execute the Subsidiary Guaranty pursuant to Section 4.06 and provide to Administrative Agent such other documentation
required by Administrative Agent, all in form and substance acceptable to Administrative Agent, within thirty (30) days after the date on which such entity becomes a Subsidiary required to execute the Subsidiary Guaranty. 
  
 ARTICLE VIII. 
 NEGATIVE COVENANTS 
  
 So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, Parent and Borrower each covenant
and agree to perform, observe, and comply with the following covenants applicable to such Person and, to the extent such covenants apply to any Person not party to this Agreement, then Parent and Borrower each covenant and agree, to the extent not
otherwise provided herein, to cause such Person to perform, observe, and comply with the following covenants applicable to such Person: 
  
 8.01 Liens. Neither Parent nor any Subsidiary shall create, incur, assume, or suffer to exist any Lien upon any Borrowing Base Property or any
Equity Interests of Borrower or any Subsidiary Guarantor that owns a Borrowing Base Property other than the following: 
  
 (a) Liens pursuant to any Loan Document; 
  
 (b) Liens existing on the date hereof and listed on Schedule 8.01 and any renewals or extensions thereof, provided that the property covered
thereby is not increased; 
  
 (c) Liens for taxes not yet due or
which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP; 
  
 (d) carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s, or other like Liens arising in the ordinary course of business which are not overdue for a period of more than thirty (30) days or which are being contested in good faith and by appropriate proceedings diligently conducted, if
adequate reserves with respect thereto are maintained on the books of the applicable Person; 
  
 (e) pledges or deposits in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security legislation, other than any Lien imposed by ERISA; 

 
 (f) deposits to secure the performance of bids, trade contracts and leases
(other than Indebtedness), statutory obligations, surety bonds (other than bonds related to judgments or litigation), performance bonds, and other obligations of a like nature incurred in the ordinary course of business; 
  
 (g) Liens set forth in the policies of Title Insurance issued with respect to
the Mortgages, and other encumbrances affecting Properties of Parent and its Subsidiaries other than the Borrowing Base Properties which, in the aggregate, are not substantial in amount, and which do not in any case materially 

  

 72 

 
detract from the value of the Property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person;

  
 (h) Liens securing judgments for the payment of money not
constituting an Event of Default under Section 9.01(h) or securing appeal or other surety bonds related to such judgments; and 
  
 (i) Liens securing Indebtedness permitted under Section 8.03(a)(ii); provided that (i) such Liens do not at any time encumber any
property other than the personal property financed by such Indebtedness and (ii) the Indebtedness secured thereby does not exceed the cost or fair market value, whichever is lower, of the personal property being acquired on the date of acquisition.

  
 8.02 Investments. Neither Parent nor any Subsidiary
shall make any Investments except: 
  
 (a) Investments in the form
of cash equivalents or short-term marketable securities; 
  
 (b)
advances to officers, directors, and employees of a Loan Party in an aggregate amount not to exceed $1,000,000 at any time outstanding, for travel, entertainment, relocation, and analogous ordinary business purposes; 
  
 (c) Investments in Loan Parties; 
  
 (d) Investments consisting of extensions of credit in the nature of accounts
receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably
necessary in order to prevent or limit loss; 
  
 (e) Guarantees
permitted by Section 8.03; 
  
 (f) Investments in
Properties; and 
  
 (g) Investments in the ordinary course of
business of a hospitality REIT primarily in Properties under nationally-recognized brands with qualified managers or operators; provided that Investments in (i) raw land, non-income producing Properties, and other non-hotel properties in an
aggregate amount shall not exceed at any time ten percent (10%) of Consolidated Total Assets, and (ii) Persons that are not Subsidiaries of Parent in an aggregate amount shall not exceed at any time fifteen percent (15%) of Consolidated Total
Assets. 
  
 8.03 Indebtedness; Liens with respect to Subsidiary
Guarantors. 
  
 (a) Neither Parent nor Borrower shall, nor
shall it permit any Subsidiary Guarantor to, create, incur, assume, or suffer to exist any Indebtedness, other than: 
  
 (i) the Obligations and guaranties thereof; 
  
 (ii) Indebtedness in respect of capital leases, Synthetic Lease Obligations, and purchase money obligations for fixed or capital personal
property within the limitations set forth in Section 8.01(i); 
  
 (iii) Indebtedness existing on the Closing Date and set forth on Schedule 8.03; 
  
 (iv) obligations (contingent or otherwise) existing or arising under any Swap Contract, provided that such obligations are
(or were) entered into by such Person in the ordinary 

  

 73 

 
course of business for the purpose of directly mitigating risks associated with liabilities, commitments, investments, assets, or property held or reasonably
anticipated by such Person or a Subsidiary of such Person, or changes in the value of securities issued by such Person, and not for purposes of speculation or taking a “market view;” 
  
 (v) any refinancings, refundings, renewals or extensions of
Indebtedness of the types described in clauses (i) through (iv) above; provided that the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal, or extension except by an amount equal to a
reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder; 
  
 (vi) Limited Recourse Guaranties of Parent or Borrower with
respect to Indebtedness of any Subsidiaries of Borrower; 
  
 (vii) Indebtedness of Parent and Borrower not secured by any Liens in an aggregate amount not to exceed $20,000,000; 
  
 (viii) unsecured Guaranties (other than for borrowed money) in the ordinary course of business, which are operational in nature; and

  
 (ix) unsecured completion bonds, performance
bonds, utility bonds, and other surety bonds in the ordinary course of business (other than for borrowed money). 
  
 (b) Neither Parent nor Borrower shall permit any Subsidiary Guarantor which owns a Borrowing Base Property to create, incur, assume, or suffer to exist
any Lien upon its property, assets, or revenues, other than (i) in favor of Administrative Agent to secure the Obligations, and (ii) Liens of the type described in Sections 8.01(a) through (i). 
  
 8.04 Fundamental Changes. Neither Parent, Borrower, nor any Subsidiary
Guarantor shall merge, dissolve, liquidate, consolidate with or into another Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in
favor of any Person, except that, so long as no Default exists or would result therefrom: 
  
 (a) any Loan Party may merge with any other Loan Party; provided that if Borrower is merging with another Loan Party, then Borrower shall be the continuing or surviving Person; 
  
 (b) any Loan Party may Dispose of all or substantially all of its assets
(upon voluntary liquidation or otherwise) to Borrower or to another Loan Party; and 
  
 (c) any Loan Party may make Dispositions permitted by Section 8.05. 
  
 8.05 Dispositions. Neither Parent, Borrower, nor any Subsidiary Guarantor shall make any Disposition or enter into any agreement to make any
Disposition except: 
  
 (a) Dispositions of obsolete or worn out
property, whether now owned or hereafter acquired, in the ordinary course of business; 
  
 (b) Dispositions of Properties (other than Borrowing Base Properties) for fair consideration in the ordinary course of business; 
  

 74 

 (c) Dispositions of other personal or real property to the extent that (i) such property is exchanged for
credit against the purchase price of similar replacement property or (ii) the proceeds of such Disposition are reasonably promptly applied to the purchase price of such replacement property; 
  
 (d) Dispositions of property by any Loan Party to Borrower or to another Loan
Party; 
  
 (e) Dispositions permitted by Section 8.04; and

  
 (f) Dispositions of Borrowing Base Properties, so long as such
Borrowing Base Properties are released from the Borrowing Base pursuant to Section 4.05 prior to or contemporaneously with such Disposition; 
  
 provided, however, that any Disposition pursuant to clauses (a) through (f) shall be for fair market value. 
  
 8.06 Restricted Payments. Neither Parent nor any Subsidiary shall
declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that, so long as no Default shall have occurred and be continuing at the time of any action described below or would
result therefrom: 
  
 (a) each Loan Party may make Restricted
Payments to Parent or to another Loan Party; 
  
 (b) each Loan
Party may declare and make dividend payments or other distributions payable solely in the common stock or other common Equity Interests of such Person; 
  
 (c) each Loan Party may purchase, redeem, or otherwise acquire shares of its common stock or other common Equity Interests or warrants or options to
acquire any such shares with the proceeds received from the substantially concurrent issue of new shares of its common stock or other common Equity Interests; 
  

(d) Parent may make Restricted Payments not to exceed Permitted Distributions as of the date of such Restricted Payment so long as no Default or Event
of Default exists before or after giving effect to such Restricted Payment. 
  
 8.07 Change in Nature of Business. Neither Parent nor any Subsidiary shall engage in any material line of business substantially different from those lines of business conducted by such Loan Party on the date
hereof or any business substantially related or incidental thereto. 
  
 8.08 Transactions with Affiliates. Neither Parent nor any Subsidiary shall enter into any transaction of any kind with any Affiliate of Borrower, whether or not in the ordinary course of business, other than on fair and reasonable
terms and at least as favorable to such Loan Party as would be obtainable by such Loan Party at the time in a comparable arm’s length transaction with a Person other than an Affiliate. 
  
 8.09 Burdensome Agreements. No Loan Party shall enter into any
Contractual Obligation (other than this Agreement or any other Loan Document) that limits the ability (a) of any Loan Party to make Restricted Payments to Borrower or to otherwise transfer property to Borrower, (b) of any Loan Party to Guarantee the
Obligations of Borrower or (c) of any Loan Party to create, incur, assume or suffer to exist Liens on property of such Person; provided, however, that this clause (c) shall not prohibit any negative pledge incurred or provided in favor
of any holder of Indebtedness permitted under Section 8.03(a)(ii) solely to the extent any such negative pledge relates to the property financed by or the subject of such Indebtedness. 
  

 75 

 8.10 Use of Proceeds. Borrower shall not use the proceeds of any Credit Extension, whether
directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or carrying margin stock or to
refund indebtedness originally incurred for such purpose. 
  
 8.11 Material Agreements. Without Administrative Agent’s prior written approval (which shall not be unreasonably withheld or delayed) as to parties, terms, and all other matters, no Loan Party shall permit any Operating Lessee
or Manager to (a) enter into any Material Agreement pertaining to any Borrowing Base Property that is not unconditionally terminable by such Person or any successor owner without penalty or payment on not more than thirty (30) days notice to the
other party thereunder, or (b) modify, amend, or terminate any such Material Agreement, nor shall it permit any Operating Lessee or Manager to, default under any Material Agreement or permit any contract to terminate by reason of any failure of such
Person to perform thereunder and shall promptly notify Administrative Agent of any default thereunder. Borrower will deliver or cause to be delivered to Administrative Agent, upon request of Administrative Agent, the names and addresses of all
persons or entities party to each Material Agreement. 
  
 8.12
Lease Approval. No Loan Party shall permit any Operating Lessee to enter into any tenant Lease of space in the Improvements unless approved or deemed approved by Administrative Agent prior to execution. Such Person’s standard form of tenant
Lease, and any revisions thereto, must have the prior written approval of Administrative Agent. Administrative Agent shall be “deemed” to have approved any tenant Lease that: (a) is on the standard form Lease approved by Administrative
Agent, with no deviations except as approved by Administrative Agent; (b) is entered into in the ordinary course of business with a bona fide unrelated third party tenant, and an Operating Lessee, acting in good faith and exercising due diligence,
has determined that the tenant is financially capable of performing its obligations under the Lease; (c) is received by Administrative Agent (together with each guarantee thereof (if any) and financial information regarding the tenant and each
guarantor (if any) received by such Operating Lessee) within fifteen (15) days after execution; (d) reflects an arms-length transaction at then current market rate for comparable space; (e) contains no right to purchase the Borrowing Base Property,
or any present or future interest therein; (f) does not cover in excess of five thousand (5,000) square feet of the net rentable area of the Improvements; (g) is expressly subordinate to the applicable Mortgage, and (h) is for a term (excluding
renewal options) of not more than five (5) years. Borrower shall cause each Operating Lessee to provide to Administrative Agent a correct and complete copy of each tenant Lease, including any exhibits, and each guarantee thereof (if any), prior to
execution unless the Lease in question meets the foregoing requirements for “deemed” approval by Administrative Agent. Borrower shall, throughout the term of this Agreement, pay all reasonable costs incurred by Administrative Agent in
connection with Administrative Agent’s review and approval of tenant Leases and each guarantee thereof (if any), including reasonable attorneys’ fees and costs. No approval of any Lease by Administrative Agent shall be for any purpose
other than to protect Lenders’ security, and to preserve Lenders’ rights under the Loan Documents. No approval by Administrative Agent shall result in a waiver of any Event of Default. In no event shall any approval by Administrative Agent
of a Lease be a representation of any kind, with regard to the Lease or its adequacy or enforceability, or the financial capacity of any tenant or guarantor. 
  
 8.13 Financial Covenants. 
  
 (a) Consolidated Tangible Net Worth. Parent shall not permit the Consolidated Tangible Net Worth as of the last day of any fiscal quarter of Parent
to be less than the sum of (a) seventy-five percent (75%) of Consolidated Tangible Net Worth as of June 30, 2004 (pro forma for all acquisitions, refinancings, and the initial public offering) based upon the financial statements delivered pursuant
to Section 7.01(c) and reasonably acceptable to Administrative Agent, and (b) an amount equal to eighty- 

  

 76 

 
five percent (85%) of the aggregate increases in Shareholders’ Equity of Parent, by reason of the issuance and sale of capital stock or other Equity
Interests of Parent or any Subsidiary (other than issuances to Parent or a wholly owned Subsidiary), including upon any conversion of debt securities of Parent into such capital stock or other Equity Interests. 
  
 (b) Consolidated Leverage Ratio. Parent shall not permit the
Consolidated Leverage Ratio as of the last day of any fiscal quarter of Parent to be greater than (i) 5.95 to 1.0 from the Closing Date through December 31, 2005, (ii) 5.50 to 1.0 from January 1, 2006 through December 31, 2006, and (iii) 5.00 to 1.0
from January 1, 2007 through the Maturity Date. 
  
 (c)
Consolidated Fixed Charge Coverage Ratio. Parent shall not permit the Consolidated Fixed Charge Coverage Ratio as of the last day of any fiscal quarter of Parent to be less than (i) 1.75 to 1.0 from the Closing Date through December 31, 2005,
and (ii) 2.00 to 1.0 from January 1, 2006 through the Maturity Date. 
  
 (d) Borrowing Base Debt Service Coverage Ratio. Parent and Borrower shall not permit, as of the last day of any fiscal quarter commencing with the fiscal quarter ended December 31, 2004, the ratio of (i) Adjusted NOI for the
Borrowing Base Properties as of such date for the twelve (12) month period ending on such date of determination, to (ii) Implied Debt Service, to be less than 1.60 to 1.0. 
  
 ARTICLE IX. 
 EVENTS OF DEFAULT AND REMEDIES 
  
 9.01 Events
of Default. Any of the following shall constitute an Event of Default: 
  
 (a) Non-Payment. Borrower or any other Loan Party fails to pay (i) when and as required to be paid herein, any amount of principal of any Loan or any L/C Obligation, or (ii) within three (3) Business Days after
the same becomes due, any interest on any Loan or on any L/C Obligation, or any fee due hereunder, or (iii) within five (5) Business Days after the same becomes due, any other amount payable hereunder or under any other Loan Document; or 

 
 (b) Specific Covenants. Borrower or Parent fails to perform or
observe any term, covenant or agreement contained in any of Section 7.01, 7.02, 7.03, 7.05, 7.10, or Article VIII; or 
  

(c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or agreement (not specified in subsection (a) or (b) above)
contained in any Loan Document on its part to be performed or observed and such failure continues unremedied for thirty (30) days after such failure occurred or, if any such failure described in this clause (c) reasonably cannot be cured or
remedied within such thirty (30) days and such Loan Party is at all times diligently pursuing the cure thereof, such default shall continue unremedied for sixty (60) days after such failure occurred; or 
  
 (d) Representations and Warranties. Any representation, warranty,
certification or statement of fact made or deemed made by or on behalf of Borrower or any other Loan Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith shall be materially incorrect or
misleading when made or deemed made; or 
  
 (e)
Cross-Default. (i) Borrower or any Subsidiary (A) fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness
hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount (including undrawn committed or available amounts and 

  

 77 

 
including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than the Threshold Amount, or (B) fails to observe or
perform any other agreement or condition relating to any such Indebtedness or Guarantee having an aggregate principal amount of more than the Threshold Amount or contained in any instrument or agreement evidencing, securing or relating thereto, or
any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or holders
or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay,
defease or redeem such Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded; or (ii) there occurs under any Swap Contract an Early Termination Date (as
defined in such Swap Contract) resulting from (A) any event of default under such Swap Contract as to which Borrower or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such
Swap Contract as to which Borrower or any Subsidiary is an Affected Party (as so defined) and, in either event, the Swap Termination Value owed by Borrower or such Subsidiary as a result thereof is greater than the Threshold Amount; or 

 
 (f) Insolvency Proceedings, Etc. Parent or any Subsidiary
institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such Person
and the appointment continues undischarged or unstayed for sixty (60) calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such
Person and continues undismissed or unstayed for sixty (60) calendar days, or an order for relief is entered in any such proceeding; or 
  
 (g) Inability to Pay Debts; Attachment. (i) Parent or any Subsidiary becomes unable or admits in writing its inability or fails generally to pay
its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of any such Person and is not released, vacated or fully bonded within
thirty (30) days after its issue or levy; or 
  
 (h)
Judgments. There is entered against Parent or any Subsidiary (i) a final judgment or order for the payment of money in an aggregate amount exceeding the Threshold Amount (to the extent not covered by independent third-party insurance as to
which the insurer does not dispute coverage), or (ii) any one or more non-monetary final judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement
proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of ten (10) consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or

  
 (i) ERISA. (i) An ERISA Event occurs with respect to a
Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of the Threshold
Amount, or (ii) Borrower or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an
aggregate amount in excess of the Threshold Amount; or 
  

 78 

 (j) Invalidity of Loan Documents. Any Loan Document, at any time after its execution and delivery
and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party or any other Person contests in any manner the validity or
enforceability of any Loan Document; or any Loan Party denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any Loan Document; or 
  
 (k) Change of Control. There occurs any Change of Control with respect
to any Loan Party; or 
  
 (l) Borrowing Base Properties.
Any of the following occurs with respect to any Borrowing Base Property: 
  
 (i) any required permit, license, certificate or approval with respect to such Borrowing Base Property lapses or ceases to be in full force and effect and such permit, certificate, or approval is not replaced within
thirty (30) days after such lapse or failure to be in full force and effect; 
  
 (ii) the owner of such Borrowing Base Property enters into any Lease of part or all of such Borrowing Base Property which does not comply with the Loan Documents, or a default by any Loan Party under or any failure by
any Loan Party to satisfy any of the conditions of a Lease; 
  
 (iii) a Lien for the performance of work or the supply of materials which is established against such Borrowing Base Property, or any stop notice served on a Loan Party, the general contractor, Administrative Agent or
a Lender, remains unsatisfied or unbonded for a period of thirty (30) days after the date of filing or service; 
  
 (iv) the occurrence of any condition or situation which, in the reasonable determination of Administrative Agent, constitutes a danger to
or impairment of the Lien of any Mortgage, if such condition or situation is not remedied within ten (10) days after written notice to Borrower thereof; 
  
 (v) any sale, Lease, conveyance, assignment, pledge, encumbrance, or transfer of all or any part of such Borrowing Base Property or any
interest therein, voluntarily or involuntarily, whether by operation of Law or otherwise, except: (A) sales or transfers of fixtures, equipment, systems, machinery, furniture, furnishings, appliances, inventory, goods, building materials, and
supplies, which have become obsolete or worn beyond practical use or which have been replaced by adequate substitutes, owned by a Loan Party, having a value equal to or greater than the replaced items when new; and (B) as otherwise permitted herein.
Required Lenders may, in their sole discretion, waive a default under this paragraph, but shall have no obligation to do so, and any waiver may be conditioned upon such one or more of the following (if any) which Required Lenders may require: a
principal paydown on the Obligations; an increase in the rate of interest payable under the Obligations; a modification of the term of the Obligations; and any other modification of the Loan Documents which Required Lenders may require; 

 
 (vi) without the prior written consent of Administrative
Agent, except as otherwise permitted herein any Loan Party grants any easement or dedication, files any plat, condominium declaration, or restriction, or otherwise encumbers such Borrowing Base Property, or seeks or permits any zoning
reclassification or variance, unless such action is expressly permitted by the Loan Documents or does not affect such Borrowing Base Property; or 
  
 (vii) such Borrowing Base Property is abandoned; 
  

 79 

 (viii) a default or event of default occurs under any Lien, security interest, or
assignment covering such Borrowing Base Property or any part thereof (whether or not Administrative Agent has consented, and without hereby implying Administrative Agent’s consent, to any such Lien, security interest or assignment not created
hereunder), or the holder of any such Lien, security interest, or assignment declares a default or institutes foreclosure or other proceedings for the enforcement of its remedies thereunder, in each case which could reasonably be expected to result
in a Material Property Event; 
  
 (ix) such
Borrowing Base Property is so demolished, destroyed or damaged that, in the reasonable opinion of Administrative Agent, it cannot be restored or rebuilt with available funds to a profitable condition within a reasonable period of time and in any
event, prior to the Maturity Date; 
  
 (x) (A)
any Governmental Authority shall require, or commence any proceeding for, the demolition of any building or structure comprising a part of such Borrowing Base Property, or (B) there is commenced any proceeding to condemn or otherwise take pursuant
to the power of eminent domain, or a contract for sale or a conveyance in lieu of such a taking is executed which provides for the transfer of, a material portion of such Borrowing Base Property, including but not limited to the taking (or transfer
in lieu thereof) of any portion which would result in the blockage or substantial impairment of access or utility service to the Improvements or which would cause such Borrowing Base Property to fail to comply with any Law; and 
  
 (xi) if a default or termination event on the part of any
Loan Party or any Person that is an Affiliate of any Loan Party has occurred and continues beyond any applicable cure period under any Franchise Agreement, Management Agreement, Ground Lease, or Operating Lease, or if a Loan Party or Operating
Lessee, without Administrative Agent’s prior written consent, terminates or cancels any Franchise Agreement, Management Agreement, Ground Lease, or Operating Lease or operates any Borrowing Base Property under the name of any hotel chain or
system other than the name such Borrowing Base Property is operated under as of the date hereof or as of the date acquired for Borrowing Base Properties acquired after the Closing Date. 
  
 9.02 Remedies Upon Event of Default. If any Event of Default occurs and is continuing, Administrative Agent shall, at
the request of, or may, with the consent of, the Required Lenders, take any or all of the following actions: 
  
 (a) declare the commitment of each Lender to make Loans and any obligation of L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such
commitments and obligation shall be terminated; 
  
 (b) declare
the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest
or other notice of any kind, all of which are hereby expressly waived by Borrower; 
  
 (c) require that Borrower Cash Collateralize the L/C Obligations (in an amount equal to the then Outstanding Amount thereof); and 
  
 (d) exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan
Documents; 

  

 80 

 
provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with respect to Borrower under the Bankruptcy
Code of the United States, the obligation of each Lender to make Loans and any obligation of L/C Issuer to make L/C Credit Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and all interest and other
amounts as aforesaid shall automatically become due and payable, and the obligation of Borrower to Cash Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each case without further act of Administrative Agent or
any Lender. 
  
 9.03 Application of Funds. After the
exercise of remedies provided for in Section 9.02 (or after the Loans have automatically become immediately due and payable and the L/C Obligations have automatically been required to be Cash Collateralized as set forth in the proviso to
Section 9.02), any amounts received on account of the Obligations shall be applied by Administrative Agent in the following order: 
  
 First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and
disbursements of counsel to Administrative Agent and amounts payable under Article III) payable to Administrative Agent in its capacity as such; 
  
 Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable
to the Lenders and L/C Issuer (including fees, charges and disbursements of counsel to the respective Lenders and L/C Issuer (including fees and time charges for attorneys who may be employees of any Lender or L/C Issuer) and amounts payable under
Article III), ratably among them in proportion to the amounts described in this clause Second payable to them; 
  
 Third, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans, L/C Borrowings and other Obligations,
ratably among the Lenders and L/C Issuer in proportion to the respective amounts described in this clause Third payable to them; 
  
 Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans and L/C Borrowings, ratably among the Lenders and
L/C Issuer in proportion to the respective amounts described in this clause Fourth held by them; 
  
 Fifth, to Administrative Agent for the account of L/C Issuer, to Cash Collateralize that portion of L/C Obligations comprised of the aggregate
undrawn amount of Letters of Credit; and 
  
 Last, the
balance, if any, after all of the Obligations have been indefeasibly paid in full, to Borrower or as otherwise required by Law. 
  
 Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause Fifth above shall be
applied to satisfy drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other
Obligations, if any, in the order set forth above. 
  
 ARTICLE
X. 
 ADMINISTRATIVE AGENT 
  
 10.01 Appointment and Authority. Each of the Lenders and L/C Issuer hereby irrevocably appoints Bank of America to act on its behalf as
Administrative Agent hereunder and under the other Loan Documents and authorizes Administrative Agent to take such actions on its behalf and to exercise 

  

 81 

 
such powers as are delegated to Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental
thereto. The provisions of this Article are solely for the benefit of Administrative Agent, the Lenders, and L/C Issuer, and, except as provided in Section 10.06, Borrower shall not have rights as a third party beneficiary of any of such
provisions. 
  
 10.02 Rights as a Lender. The Person
serving as Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not Administrative Agent and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits
from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with Borrower or any Subsidiary or other Affiliate thereof as if such Person were not Administrative Agent hereunder
and without any duty to account therefor to the Lenders. 
  
 10.03 Exculpatory Provisions. 
  
 (a) Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, Administrative Agent: 
  
 (i) shall not be subject to any fiduciary or other implied
duties, regardless of whether a Default has occurred and is continuing; 
  
 (ii) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that
Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that
Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose Administrative Agent to liability or that is contrary to any Loan Document or applicable law; and 
  
 (iii) shall not, except as expressly set forth herein and in
the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as Administrative Agent
or any of its Affiliates in any capacity. 
  
 (b)
Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as Administrative Agent
shall believe in good faith shall be necessary, under the circumstances as provided in Sections 11.01 and 9.02) or (ii) in the absence of its own gross negligence or willful misconduct. Administrative Agent shall be deemed not to have
knowledge of any Default unless and until notice describing such Default is given to Administrative Agent by Borrower, a Lender, or L/C Issuer. 
  
 (c) Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set 

  

 82 

 
forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan
Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article V or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to Administrative Agent.

  
 10.04 Reliance by Administrative Agent. Administrative
Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website
posting, or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to
have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to
the satisfaction of a Lender or L/C Issuer, Administrative Agent may presume that such condition is satisfactory to such Lender or L/C Issuer unless Administrative Agent shall have received notice to the contrary from such Lender or L/C Issuer prior
to the making of such Loan or the issuance of such Letter of Credit. Administrative Agent may consult with legal counsel (who may be counsel for Borrower), independent accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 
  
 10.05 Delegation of Duties. Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub-agents appointed by Administrative Agent. Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective
Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities as Administrative Agent. 
  
 10.06 Resignation of Administrative Agent. Administrative Agent may resign as Administrative Agent upon thirty (30) days’ notice to Lenders;
provided any such resignation by Bank of America shall also constitute its resignation as L/C Issuer. Upon receipt of any such notice of resignation, the Required Lenders shall have the right to appoint a successor, acceptable to Borrower (which
acceptance shall not be (i) unreasonably withheld or delayed, or (ii) required during the continuance of an Event of Default, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United
States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders and L/C Issuer, appoint a successor Administrative Agent meeting the qualifications set forth above; provided that if Administrative Agent shall notify Borrower and the Lenders that no
qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (a) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and
under the other Loan Documents (except that in the case of any collateral security held by Administrative Agent on behalf of the Lenders or L/C Issuer under any of the Loan Documents, the retiring Administrative Agent shall continue to hold such
collateral security until such time as a successor Administrative Agent is appointed) and (b) all payments, communications, and determinations provided to be made by, to or through Administrative Agent shall instead be made by or to each Lender and
L/C Issuer directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section 10.06. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such
successor shall succeed to and become vested with 

  

 83 

 
all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged
from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this Section). The fees payable by Borrower to a successor Administrative Agent shall be the same as those
payable to its predecessor unless otherwise agreed between Borrower and such successor. After the retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article and Section 11.04
shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was
acting as Administrative Agent. 
  
 Any resignation by Bank of
America as Administrative Agent pursuant to this Section shall also constitute its resignation as L/C Issuer. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer, (b) the retiring L/C Issuer shall be discharged from all of their respective duties and obligations hereunder or under the other Loan Documents, and (c) the
successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangement satisfactory to the retiring L/C Issuer to effectively assume the obligations
of the retiring L/C Issuer with respect to such Letters of Credit. 
  
 10.07 Non-Reliance on Administrative Agent and Other Lenders. Each Lender and L/C Issuer acknowledges that it has, independently and without reliance upon Administrative Agent or any other Lender or any of their Related Parties and
based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender and L/C Issuer also acknowledges that it will, independently and without reliance upon
Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder. 
  
 10.08 No Other Duties, Etc. Anything herein to the contrary notwithstanding, none of the Bookrunners, Arrangers, or other titles as necessary
listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as Administrative Agent, a Lender or L/C Issuer hereunder. 

 
 10.09 Administrative Agent May File Proofs of Claim. In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, Administrative Agent (irrespective of whether the principal of any Loan
or L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Administrative Agent shall have made any demand on Borrower) shall be entitled and empowered, by intervention in such
proceeding or otherwise 
  
 (a) to file and prove
a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C Obligations, and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to
have the claims of the Lenders, L/C Issuer, and Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements, and advances of the Lenders, L/C Issuer, and Administrative Agent and their respective agents and
counsel and all other amounts due the Lenders, L/C Issuer, and Administrative Agent under Sections 2.03(i) and (j), 2.09, and 11.04) allowed in such judicial proceeding; and 
  

 84 

 (b) to collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same; 
  
 and any custodian, receiver, assignee,
trustee, liquidator, sequestrator, or other similar official in any such judicial proceeding is hereby authorized by each Lender and L/C Issuer to make such payments to Administrative Agent and, in the event that Administrative Agent shall consent
to the making of such payments directly to the Lenders and L/C Issuer, to pay to Administrative Agent any amount due for the reasonable compensation, expenses, disbursements, and advances of Administrative Agent and its agents and counsel, and any
other amounts due Administrative Agent under Sections 2.09 and 11.04. 
  
 Nothing contained herein shall be deemed to authorize Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or L/C Issuer any plan of reorganization, arrangement, adjustment or
composition affecting the Obligations or the rights of any Lender or to authorize Administrative Agent to vote in respect of the claim of any Lender in any such proceeding. 
  
 10.10 Collateral and Guaranty Matters. 
  
 (a) Lenders hereby irrevocably authorize Administrative Agent to (i) to subordinate any Lien on any property granted to or
held by Administrative Agent under any Loan Document to the holder of any Lien on such property that is permitted by Section 8.01; and (ii) to release any Guarantor from its obligations under the Guaranty if such Person ceases to be a
Subsidiary as a result of a transaction permitted hereunder. 
  
 (b) Lenders hereby irrevocably authorize Administrative Agent to transfer or release any Lien on, or after foreclosure or other acquisition of title by Administrative Agent on behalf of the Lenders to transfer or sell, any Loan Collateral:
(i) upon the termination of the Aggregate Commitments and payment and satisfaction in full of all Obligations; (ii) constituting a release, transfer, or sale of a lien or property if Borrower will certify to Administrative Agent that the release,
transfer or sale is permitted under this Agreement or the other Loan Documents (and Administrative Agent may rely conclusively on any such certificate, without further inquiry); (iii) after foreclosure or other acquisition of title (1) for a
purchase price of not less than ninety percent (90%) of the value indicated in the most recent appraisal of the collateral obtained by Administrative Agent made in accordance with regulations governing Administrative Agent, less any reduction
indicated in the appraisal estimated by experts in such areas; or (2) if approved by the Required Lenders. 
  
 (c) If all or any portion of the Loan Collateral is acquired by foreclosure or by deed in lieu of foreclosure, Administrative Agent shall take title to
the Collateral in its name or by an Affiliate of Administrative Agent, but for the benefit of all Lenders in their Pro Rata Shares on the date of the foreclosure sale or recordation of the deed in lieu of foreclosure (the “Acquisition
Date”). Administrative Agent and all Lenders hereby expressly waive and relinquish any right of partition with respect to any collateral so acquired. After any collateral is acquired, Administrative Agent shall appoint and retain one or
more Persons (individually and collectively, “Property Manager”) experienced in the management, leasing, sale, and/or dispositions of similar properties. 
  
 After consulting with the Property Manager, Administrative Agent shall prepare a written plan for completion of construction
(if required), operation, management, improvement, maintenance, repair, sale, and disposition of the Loan collateral and a budget for the aforesaid, which may include a reasonable management fee payable to Administrative Agent (the “Business
Plan”). Administrative Agent will deliver the Business Plan not later than the sixtieth (60th) day after the Acquisition Date to each Lender with a written request for approval of the Business Plan. If the Business Plan is approved by the
Required Lenders, Administrative Agent and the Property Manager shall adhere to the Business Plan until a different Business 

  

 85 

 
Plan is approved by the Required Lenders. Administrative Agent may propose an amendment to the Business Plan as it deems appropriate, which shall also be
subject to Required Lender approval. If the Business Plan (as may be amended) proposed by Administrative Agent is not approved by the Required Lenders, (or if sixty (60) days have elapsed following the Acquisition Date without a Business Plan being
proposed by Administrative Agent), any Lender may propose an alternative Business Plan, which Administrative Agent shall submit to all Lenders for their approval. If an alternative Business Plan is approved by the Required Lenders, Administrative
Agent may appoint one of the approving Lenders to implement the alternative Business Plan. Notwithstanding any other provision of this Agreement, unless in violation of an approved Business Plan or otherwise in an emergency situation,
Administrative Agent shall, subject to subsection (a) of this Section, have the right but not the obligation to take any action in connection with the Loan collateral (including those with respect to property taxes, insurance premiums, operation,
management, improvement, maintenance, repair, sale and disposition), or any portion thereof. 
  
 (d) Upon request by Administrative Agent or Borrower at any time, Lenders will confirm in writing Administrative Agent’s authority to sell, transfer, or release any such liens of particular types or items of Loan
collateral pursuant to this Section; provided, however, that (i) Administrative Agent shall not be required to execute any document necessary to evidence such release, transfer or sale on terms that, in Administrative Agent’s
opinion, would expose Administrative Agent to liability or create any obligation or entail any consequence other than the transfer, release or sale without recourse, representation or warranty, and (ii) such transfer, release or sale shall not in
any manner discharge, affect or impair the obligations of Borrower other than those expressly being released. 
  
 (e) If only two (2) Lenders exist at the time Administrative Agent receives a purchase offer for Loan Collateral for which one of the Lenders does not
consent within ten (10) Business Days after notification from Administrative Agent, the consenting Lender may offer (“Purchase Offer”) to purchase all of non-consenting Lender’s right, title, and interest in the collateral for
a purchase price equal to non-consenting Lender’s Pro Rata Share of the net proceeds anticipated from such sale of such Collateral (as reasonably determined by Administrative Agent, including the undiscounted face principal amount of any
purchase money obligation not payable at closing) (“Net Proceeds”). Within ten (10) Business Days thereafter the non-consenting Lender shall be deemed to have accepted such Purchase Offer unless the non-consenting Lender notifies
Administrative Agent that it elects to purchase all of the consenting Lender’s right, title, and interest in the Collateral for a purchase price payable by the non-consenting Lender in an amount equal to the consenting Lender’s Pro Rata
Share of the Net Proceeds. Any amount payable hereunder by a Lender shall be due on the earlier to occur of the closing of the sale of the collateral or ninety (90) days after the Purchase Offer, regardless of whether the Collateral has been sold.

  
 ARTICLE XI. 
 MISCELLANEOUS 
  
 11.01 Amendments, Etc. Administrative Agent and Lenders shall be entitled to amend (whether pursuant to a separate intercreditor agreement or
otherwise) any of the terms, conditions, or agreements set forth in Article X or as to any other matter in the Loan Documents respecting payments to Administrative Agent or Lenders or the required number of the Lenders to approve or
disapprove any matter or to take or refrain from taking any action, without the consent of Borrower (except as to the rights granted to Borrower under Section 10.06) or any other Person or the execution by Borrower or any other Person of any
such amendment or intercreditor agreement. Subject to the foregoing, Administrative Agent may amend or waive any provision of this Agreement or any other Loan Document, or consent to any departure by any party to the Loan Documents therefrom which
amendment, waiver or consent is intended to be within Administrative Agent’s discretion or determination; provided however, otherwise no such amendment, waiver or consent shall be effective unless in writing, signed by the
Required Lenders and Borrower or the applicable party to the Loan Documents, as the case may be, and 

  

 86 

 
acknowledged by Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which
given; provided further however, no such amendment, waiver or consent shall: 
  
 (a) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 9.02), without the written consent of such Lender (it being understood that a waiver of a Default
shall not constitute an extension or increase in any Lender’s Commitment); 
  
 (b) postpone any date fixed by this Agreement or any other Loan Document for any payment or mandatory prepayment of principal, interest, fees, or other amounts due to the Lenders (or any of them) or any scheduled or
mandatory reduction of the Aggregate Commitments hereunder or under any other Loan Document, without the written consent of each Lender directly affected thereby; 
  
 (c) reduce the principal of, or the rate of interest specified herein on, any portion of any Loan or L/C Borrowing, or any
fees or other amounts payable hereunder or under any other Loan Document, without the written consent of each Lender directly affected thereby; provided, however, that Administrative Agent may waive any obligation of Borrower to pay
interest at the Default Rate for periods of up to thirty days, and only the consent of the Required Lenders shall be necessary to waive any obligation of Borrower to pay interest at the Default Rate or late charges thereafter, or to amend the
definition of “Default Rate”; 
  
 (d) change the
definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder,
without the written consent of each Lender; 
  
 (e) amend this
Section 11.01, or change Section 2.12 or Section 9.03 in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender; 
  
 (f) release the liability of any Loan Party, if applicable, without the
written consent of each Lender; 
  
 (g) permit the sale, transfer,
pledge, mortgage, or assignment of any Collateral or any direct or indirect interest in Borrower, except as expressly permitted under the Loan Documents, without the written consent of each Lender; or 
  
 (h) transfer or release any lien on, or after foreclosure or other
acquisition of title by Administrative Agent on behalf of the Lenders transfer or sell, any Collateral except as permitted in Section 10.10, without the written consent of each Lender. 
  
 and, provided further, that (i) no amendment, waiver or consent shall, unless
in writing and signed by L/C Issuer in addition to the Lenders required above, affect the rights or duties of L/C Issuer under this Agreement or any Letter of Credit Application relating to any Letter of Credit issued or to be issued by it; (ii) no
amendment, waiver or consent shall, unless in writing and signed by Administrative Agent in addition to the Lenders required above, affect the rights or duties of Administrative Agent under this Agreement or any other Loan Document; and (iii) the
Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any
amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased or extended without the consent of such Lender. 
  

 87 

 11.02 Notices; Effectiveness; Electronic Communication. 
  
 (a) Notices Generally. Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service,
mailed by certified or registered mail or sent by telecopier as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows: 
  
 (i) if to Borrower, Administrative Agent, L/C Issuer, to the
address, telecopier number, electronic mail address or telephone number specified for such Person on Schedule 11.02; and 
  
 (ii) if to any other Lender, to the address, telecopier number, electronic mail address or telephone number specified in its
Administrative Questionnaire. 
  
 Notices sent by hand or overnight courier
service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient,
shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such
subsection (b). 
  
 (b) Electronic Communications. Notices
and other communications to the Lenders and L/C Issuer hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by Administrative Agent, provided
that the foregoing shall not apply to notices to any Lender or L/C Issuer pursuant to Article II or Article IX if such Lender or L/C Issuer, as applicable, has notified Administrative Agent that it is incapable of receiving notices
under such Article by electronic communication. Administrative Agent or Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it,
provided that approval of such procedures may be limited to particular notices or communications. 
  
 Unless Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and
identifying the website address therefor. 
  
 (c) Change of
Address, Etc. Each of Borrower, Administrative Agent, L/C Issuer may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the other parties hereto. Each other Lender may change its
address, telecopier or telephone number for notices and other communications hereunder by notice to Borrower, Administrative Agent, L/C Issuer. 
  
 (d) Reliance by Administrative Agent, L/C Issuer and Lenders. Administrative Agent, L/C Issuer and the Lenders shall be entitled to rely and
act upon any notices (including telephonic Loan 

  

 88 

 
Notices) purportedly given by or on behalf of Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. Borrower shall indemnify Administrative Agent, L/C Issuer, each Lender and the
Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of Borrower. All telephonic notices to and other telephonic communications
with Administrative Agent may be recorded by Administrative Agent, and each of the parties hereto hereby consents to such recording. 
  
 11.03 No Waiver; Cumulative Remedies. No failure by any Lender, L/C Issuer or Administrative Agent to exercise, and no delay by any such Person in
exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise
of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. 
  
 11.04 Expenses; Indemnity; Damage Waiver. 
  
 (a) Costs and Expenses. Borrower shall pay (i) all reasonable
out-of-pocket expenses incurred by Administrative Agent and its Affiliates (including the reasonable fees, charges and disbursements of counsel for Administrative Agent), in connection with the syndication of the credit facilities provided for
herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated
hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by L/C Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder; (iii) all
out-of-pocket expenses incurred by Administrative Agent, any Lender or L/C Issuer (including the fees, charges and disbursements of any counsel for Administrative Agent, any Lender or L/C Issuer), and shall pay all fees and time charges for
attorneys who may be employees of Administrative Agent, any Lender or L/C Issuer, in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this
Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit. 

 
 (b) Indemnification by Borrower. Whether or not the transactions
contemplated hereby are consummated, Borrower shall indemnify and hold harmless each Agent-Related Person, each Lender, any trustee under any Mortgage, and their respective Affiliates, directors, officers, employees, counsel, agents and
attorneys-in-fact (collectively the “Indemnitees”) from and against any and all liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements (including the
reasonable fees, charges, and disbursements of any counsel for any Indemnitee) of any kind or nature whatsoever which may at any time be imposed on, incurred by or asserted against any such Indemnitee in any way relating to or arising out of or in
connection with (a) the execution, delivery, enforcement, performance or administration of any Loan Document or any other agreement, letter or instrument delivered in connection with the transactions contemplated thereby or the consummation of the
transactions contemplated thereby, (b) any Commitment, Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by L/C Issuer to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (c) (i) defect in the Property, (ii) performance or default of Borrower, Borrower’s surveyors, architects, engineers, contractors, or any
other person, (iii) failure to protect or insure the Improvements, (iv) payment of costs of labor, materials, or services supplied 

  

 89 

 
for the Improvements, or (v) Environmental Damages, or (d) any actual or prospective claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory (including any investigation of, preparation for, or defense of any pending or threatened claim, investigation, litigation or proceeding) and regardless of whether any Indemnitee is a
party thereto (all the foregoing, collectively, the “Indemnified Liabilities”), in all cases, whether or not caused by or arising, in whole or in part, out of the negligence of the Indemnitee; provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such liabilities, obligations, losses, damages, penalties, claims, demands, actions, judgments, suits, costs, expenses or disbursements 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. No Indemnitee shall be liable for any damages arising from the use by others of any information or other materials
obtained through IntraLinks or other similar information transmission systems in connection with this Agreement, nor shall any Indemnitee have any liability for any indirect or consequential damages relating to this Agreement or any other Loan
Document or arising out of its activities in connection herewith or therewith (whether before or after the Closing Date). All amounts due under this Section 11.04 shall be payable within ten Business Days after demand therefor. The agreements
in this Section shall survive the resignation of Administrative Agent, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations. Notwithstanding any
approvals or consents by Administrative Agent or Lenders, neither Administrative Agent nor any Lender has any obligation or responsibility whatsoever for the adequacy, form or content of the Plans, any budget, any contract, any change order, any
lease, or any other matter incident to the Property or the Improvements. Administrative Agent’s or Lenders’ acceptance of an assignment of the Plans shall not constitute approval of the Plans. Any inspection or audit of any Borrowing Base
Property or the books and records of any Loan Party, or the procuring of documents and financial and other information, by or on behalf of Administrative Agent shall be for Administrative Agent and Lenders’ protection only, and shall not
constitute an assumption of responsibility to any Loan Party or anyone else with regard to the condition, construction, maintenance, or operation of any Borrowing Base Property, or relieve any Loan Party of any of its obligations. The Loan Parties
have selected all surveyors, architects, engineers, contractors, materialmen, and all other persons or entities furnishing services or materials to any Borrowing Base Property. Neither Administrative Agent nor any Lender has any duty to supervise or
to inspect any Borrowing Base Property nor any duty of care to any Loan Party or any other person to protect against, or inform such Loan Party or any other person of the existence of, negligent, faulty, inadequate, or defective design or
construction of the Improvements. Upon demand by Administrative Agent, the applicable Loan Party shall diligently defend any of the Indemnified Liabilities which affects any Borrowing Base Property or is made or commenced against Administrative
Agent or any Lender, whether alone or together with Borrower or any other person, all at Borrower’s own cost and expense and by counsel to be approved by Administrative Agent in the exercise of its reasonable judgment. In the alternative, at
any time Administrative Agent may elect to conduct its own defense on behalf of itself or any Lender through counsel selected by Administrative Agent and at the cost and expense of Borrower. Nothing, including any advance or acceptance of any
document or instrument, shall be construed as a representation or warranty, express or implied, to any party by Administrative Agent or Lenders. Inspection shall not constitute an acknowledgment or representation by Administrative Agent or Lenders
that there has been or will be compliance with the Plans, the Loan Documents, or applicable Laws and restrictive covenants, or that the construction is free from defective materials or workmanship. Inspection, whether or not followed by notice of
Default, shall not constitute a waiver of any Default then existing. Administrative Agent’s failure to inspect shall not constitute a waiver of any of Administrative Agent’s or Lenders’ rights under the Loan Documents or at Law or in
equity. Notwithstanding the foregoing, the Indemnified Liabilities do not include, and neither Borrower nor any Loan Party is otherwise obligated to pay, any of the Excluded Taxes. 
  
 (c) Reimbursement by Lenders. To the extent that Borrower for any reason fails to indefeasibly pay any amount
required under Sections 11.04(a) or (b) of this Section to be paid by it to 

  

 90 

 
Administrative Agent (or any sub-agent thereof), L/C Issuer or any Related Party of any of the foregoing, each Lender severally agrees to pay to
Administrative Agent (or any such sub-agent), L/C Issuer or such Related Party, as the case may be, such Lender’s Pro Rata Share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against Administrative Agent (or any such sub-agent) or L/C Issuer in its
capacity as such, or against any Related Party of any of the foregoing acting for Administrative Agent (or any such sub-agent) or L/C Issuer in connection with such capacity. The obligations of the Lenders under Section 11.04(c) are subject
to the provisions of Section 2.11(d). 
  
 (d) Waiver of
Consequential Damages, Etc. To the fullest extent permitted by applicable law, Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or
Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby, except to the extent of such Person’s gross negligence or
willful misconduct. 
  
 (e) Payments. All amounts due under
this Section 11.04 shall be payable not later than ten Business Days after demand therefor. 
  
 (f) Survival. The agreements in this Section 11.04 shall survive the resignation of Administrative Agent and L/C Issuer, the replacement of
any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations. 
  
 11.05 Payments Set Aside. To the extent that any payment by or on behalf of Borrower is made to Administrative Agent, L/C Issuer or any Lender, or
Administrative Agent, L/C Issuer or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by Administrative Agent, L/C Issuer or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or
otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and
(b) each Lender and L/C Issuer severally agrees to pay to Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by Administrative Agent, plus interest thereon from the date of such
demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect. The obligations of the Lenders and L/C Issuer under clause (b) of the preceding sentence shall survive the payment in full of
the Obligations and the termination of this Agreement. 
  
 11.06 Successors and Assigns. 
  
 (a)
Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that Borrower may not assign or
otherwise transfer any of its rights or obligations hereunder without the prior written consent of Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an
Eligible Assignee in accordance with the provisions of Section 11.06(b), (ii) by way of participation in accordance with the 

  

 91 

 
provisions of Section 11.06(d), or (iii) by way of pledge or assignment of a security interest subject to the restrictions of Section 11.06(f)
(and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors
and assigns permitted hereby, Participants to the extent provided in Section 11.06(d) and, to the extent expressly contemplated hereby, the Related Parties of each of Administrative Agent, L/C Issuer and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement. 
  
 (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans
(including for purposes of this subsection (b), participations in L/C Obligations) at the time owing to it); provided that 
  
 (i) except in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loans at the time
owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the
Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to
Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000 unless each of Administrative Agent and, so long as no Event of Default has occurred and is
continuing, Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed); 
  
 (ii) any assignment of a Commitment must be approved by Administrative Agent and L/C Issuer unless the Person that is the proposed
assignee is itself a Lender (whether or not the proposed assignee would otherwise qualify as an Eligible Assignee); and 
  
 (iii) the parties to each assignment shall execute and deliver to Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee of $3,500, and the Eligible Assignee, if it shall not be a Lender, shall deliver to Administrative Agent an Administrative Questionnaire. 
  
 Subject to acceptance and recording thereof by Administrative Agent pursuant to subsection (c) of this Section 11.06, from and after
the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption
covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05, and
11.04 with respect to facts and circumstances occurring prior to the effective date of such assignment. Upon request, Borrower (at its expense) shall execute and deliver a Note to the assignee Lender provided assignor Lender returns to
Borrower any Note issued to it. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with subsection (d) of this Section. 
  
 (c) Register. Administrative Agent, acting solely for this purpose as an agent of Borrower, shall maintain at Administrative Agent’s Office a
copy of each Assignment and Assumption delivered to 

  

 92 

 
it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of the Loans and L/C
Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and Borrower, Administrative Agent and the Lenders may treat each Person whose name
is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by each of Borrower and L/C Issuer at any
reasonable time and from time to time upon reasonable prior notice. In addition, at any time that a request for a consent for a material or substantive change to the Loan Documents is pending, any Lender wishing to consult with other Lenders in
connection therewith may request and receive from Administrative Agent a copy of the Register. 
  
 (d) Participations. Any Lender may at any time, without the consent of, or notice to, Borrower or Administrative Agent, sell participations to any Person (other than a natural person or Borrower or any of
Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans (including
such Lender’s participations in L/C Obligations) owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations and (iii) Borrower, Administrative Agent, the Lenders and L/C Issuer shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.

  
 Any agreement or instrument pursuant to which a Lender sells
such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 11.01 that affects such Participant. Subject to subsection (e) of this
Section, Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were the Lender from whom it purchased its participation and had acquired its interest
by assignment pursuant to subsection (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.08 as though it were a Lender, provided such Participant agrees to be
subject to Section 2.12 as though it were a Lender. 
  
 (e)
Limitations upon Participant Rights. A Participant shall not be entitled to receive any greater payment under Section 3.01 or 3.04 than the applicable Lender would have been entitled to receive with respect to the participation
sold to such Participant, unless the sale of the participation to such Participant is made with Borrower’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of
Section 3.01 unless Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of Borrower, to comply with Section 3.01(e), (f), and (g) as though it were a Lender.

  
 (f) Certain Pledges. Any Lender may at any time pledge
or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank;
provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
  
 (g) Electronic Execution of Assignments. The words
“execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the 

  

 93 

 
case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the
New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. 
  
 (h) Resignation as L/C Issuer after Assignment. Notwithstanding anything to the contrary contained herein, if at any time Bank of America assigns
all of its Commitment and Loans pursuant to subsection (b) above, Bank of America may, upon thirty (30) days’ notice to Borrower and the Lenders, resign as L/C Issuer. In the event of any such resignation as L/C Issuer, Borrower shall be
entitled to appoint from among the Lenders a successor L/C Issuer hereunder; provided, however, that no failure by Borrower to appoint any such successor shall affect the resignation of Bank of America as L/C Issuer, as the case may
be. If Bank of America resigns as L/C Issuer, it shall retain all the rights and obligations of L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations
with respect thereto (including the right to require the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)). 
  
 11.07 Treatment of Certain Information; Confidentiality. Each of Administrative Agent, the Lenders and L/C Issuer
agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors
and representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any
regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement
of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or
obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to Borrower and its obligations, (g) with the consent of Borrower or (h) to the extent such Information
(x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to Administrative Agent, any Lender, L/C Issuer or any of their respective Affiliates on a nonconfidential basis from a source other than
Borrower. 
  
 For purposes of this Section,
“Information” means all information received from Borrower or any Subsidiary relating to Borrower or any Subsidiary or any of their respective businesses, other than any such information that is available to Administrative Agent,
any Lender or L/C Issuer on a nonconfidential basis prior to disclosure by Borrower or any Subsidiary, provided that, in the case of information received from Borrower or any Subsidiary after the date hereof, such information is clearly
identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 
  
 11.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender, L/C Issuer and each of their respective
Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any
time held and other obligations (in whatever currency) at any time owing by such Lender, L/C Issuer or any such Affiliate to or for the credit or the account of Borrower against any and all of the obligations of Borrower now or 

  

 94 

 
hereafter existing under this Agreement or any other Loan Document to such Lender or L/C Issuer, irrespective of whether or not such Lender or L/C Issuer
shall have made any demand under this Agreement or any other Loan Document and although such obligations of Borrower may be contingent or unmatured or are owed to a branch or office of such Lender or L/C Issuer different from the branch or office
holding such deposit or obligated on such indebtedness. The rights of each Lender, L/C Issuer and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, L/C
Issuer or their respective Affiliates may have. Each Lender and L/C Issuer agrees to notify Borrower and Administrative Agent promptly after any such setoff and application, provided that the failure to give such notice shall not affect the
validity of such setoff and application. 
  
 11.09 Interest
Rate Limitation. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the
“Maximum Rate”). If Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal,
refunded to Borrower. In determining whether the interest contracted for, charged, or received by Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment
that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout
the contemplated term of the Obligations hereunder. 
  
 11.10
Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall
constitute a single contract. This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in Section 5.01, this Agreement shall become effective when it shall have been executed by Administrative Agent and when Administrative Agent shall have received counterparts hereof
that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this
Agreement. 
  
 11.11 Survival of Representations and
Warranties. All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and
thereof. Such representations and warranties have been or will be relied upon by Administrative Agent and each Lender, regardless of any investigation made by Administrative Agent or any Lender or on their behalf and notwithstanding that
Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or
unsatisfied or any Letter of Credit shall remain outstanding. 
  
 11.12 Severability. If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the
other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as
close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  

 95 

 11.13 Replacement of Lenders. If any Lender requests compensation under Section 3.04, or if
Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender is a Defaulting Lender or if any other circumstance exists hereunder that
gives Borrower the right to replace a Lender as a party hereto, then Borrower may, at its sole expense and effort, upon notice to such Lender and Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with
and subject to the restrictions contained in, and consents required by, Section 11.06), all of its interests, rights and obligations under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment), provided that: 
  
 (a) Borrower shall have paid to Administrative Agent the assignment fee specified in Section 11.06(b); 
  
 (b) such Lender shall have received payment of an amount equal to the
outstanding principal of its Loans and L/C Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 3.05) from the assignee (to the
extent of such outstanding principal and accrued interest and fees) or Borrower (in the case of all other amounts); 
  
 (c) in the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments required to be made pursuant to
Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter; and 
  
 (d) such assignment does not conflict with applicable Laws. 
  
 A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling Borrower to require such assignment and delegation cease to apply. 
  
 11.14 Assignment of Contracts and Plans. As additional security for the Obligations, each Loan Party hereby transfers and assigns to Administrative Agent for the ratable benefit of Administrative Agent and
Lenders all of such Loan Party’s right, title, and interest, but not its liability, in, under, and to all construction, architectural and design contracts, and the Plans, and agrees that all of the same are covered by the security agreement
provisions of the Mortgages. Borrower agrees to deliver to Administrative Agent from time to time upon Administrative Agent’s reasonable request such consents to the foregoing assignment from parties contracting with Borrower as Administrative
Agent may require. Neither this assignment nor any action by Administrative Agent or Lenders shall constitute an assumption by Administrative Agent or Lenders of any obligation under any contract or with respect to the Plans. 
  
 11.15 Governing Law; Jurisdiction; Etc. 
  
 (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF TEXAS. 
  
 (b)
SUBMISSION TO JURISDICTION. BORROWER IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF TEXAS SITTING IN DALLAS COUNTY AND OF THE UNITED STATES DISTRICT COURT
OF THE NORTHERN DISTRICT OF TEXAS, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE

  

 96 

 
PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH TEXAS
STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO 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 AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ADMINISTRATIVE AGENT, ANY LENDER OR L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION. 
  
 (c) WAIVER OF VENUE. BORROWER 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 AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH OF THE PARTIES HERETO 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. 
  
 (d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
NOTICES IN SECTION 11.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. 
  
 11.16 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE 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 AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) 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 AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
  
 11.17 USA PATRIOT Act Notice. Each Lender that is subject to the Act
(as hereinafter defined) and Administrative Agent (for itself and not on behalf of any Lender) hereby notifies Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
“Act”), it is required to obtain, verify and record information that identifies Borrower, which information includes the name and address of Borrower and other information that will allow such Lender or Administrative Agent, as
applicable, to identify Borrower in accordance with the Act. 
  
 11.18 Time of the Essence. Time is of the essence of the Loan Documents. 
  
 11.19 ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES. 
  

 97 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the
date first above written. 
  

									
	CAPITAL LODGING OPERATING PARTNERSHIP, L.P.
		
	By:	 	 CAPITAL LODGING GENERAL PARTNER, LLC,
 its General Partner

			
	 	 	By:	 	CAPITAL LODGING, its Member
				
	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 

  

					
	CAPITAL LODGING
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	BANK OF AMERICA, N.A., as a Lender and L/C Issuer
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  
 [OTHER LENDERS]

  

 S - 1 

 SCHEDULE 1.01(A) 
  
 OPERATING LESSEES AND FRANCHISORS 
  

			
	 Operating Lessee

	  	 Hotel Name/Location

	 Capital Lodging TRS Operations II, Inc.
	  	 Charlotte University Holiday Inn/Charlotte, NC
  
 Harrisonburg Four Points/Harrisonburg, VA
  
 Tallahassee Ramada Inn/Tallahassee, FL
  
 Wyndham Palm Springs/Palm Springs, CA
  
 Wyndham St. Anthony/San Antonio, TX
  
 Radisson Stockton/Stockton, CA
  
 Radisson North Central Dallas/Dallas, TX
  
 Radisson Branson/Branson, MO

  

			
	 Franchisor

	  	 Hotel Name/Location

	 Holiday Hospitality Franchising, Inc.
	  	Charlotte University Holiday Inn/Charlotte, NC
		
	 The Sheraton Corporation
	  	Harrisonburg Four Points/Harrisonburg, VA
		
	 Ramada Franchise Systems, Inc.
	  	Tallahassee Ramada Inn/Tallahassee, FL
		
	 WHC Franchise Corporation
	  	 Wyndham Palm Springs/Palm Springs, CA
  
 Wyndham St. Anthony/San Antonio, TX

		
	 Carlson Hotels Management Company
	  	 Radisson Stockton/Stockton, CA
  
 Radisson North Central Dallas/Dallas, TX
  
 Radisson Branson/Branson, MO

  

 1 

 SCHEDULE 1.01(B) 
  
 MANAGERS 
  

			
	 Manager

	  	 Hotel Name/Location

	 Prism Hospitality, L.P.
	  	 Charlotte University Holiday Inn/Charlotte, NC
  
 Harrisonburg Four Points/Harrisonburg, VA
  
 Tallahassee Ramada Inn/Tallahassee, FL

		
	 Wyndham Management Corporation
	  	 Wyndham Palm Springs/Palm Springs, CA
  
 Wyndham St. Anthony/San Antonio, TX

		
	 Carlson Hotels Management Company
	  	 Radisson Stockton/Stockton, CA
  
 Radisson North Central Dallas/Dallas, TX
  
 Radisson Branson/Branson, MO

  

 1 

 SCHEDULE 2.01 
  
 COMMITMENTS 
 AND PRO RATA SHARES 
  

							
	 Lender

	  	Commitment

	  	Pro Rata Share

	 
	 Bank of America, N.A.
	  	$	27,500,000	  	27.500000000	%
	 Wachovia Bank, National Association
	  	$	27,500,000	  	27.500000000	%
	 Bank of Scotland, NA
	  	$	20,000,000	  	20.000000000	%
	 Royal Bank of Canada
	  	$	15,000,000	  	15.000000000	%
	 Compass Bank
	  	$	10,000,000	  	10.000000000	%
	 Total
	  	$	100,000,000	  	100.000000000	%

  

 1 

 SCHEDULE 4.01 
  
 INITIAL BORROWING BASE PROPERTIES 
  

			
	 Property

	  	 Location

	 Wyndham Palm Springs (Ground lease)
	  	Palm Springs, CA
		
	 Wyndham St. Anthony
	  	San Antonio, TX
		
	 Radisson Stockton
	  	Stockton, CA
		
	 Radisson North Central Dallas
	  	Dallas, TX
		
	 Radisson Branson
	  	Branson, MO
		
	 Tallahassee Ramada
	  	Tallahassee, FL
		
	 Charlotte University Holiday Inn
	  	Charlotte, NC
		
	 Harrisonburg Four Points by Sheraton
	  	Harrisonburg, VA

  

 1 

 SCHEDULE 4.06 
  
 NON-GUARANTOR SUBSIDIARIES 
  
 CL Corp. 
  
 Capital Lodging General Partner, LLC 
  
 Capital
Lodging Operating Partnership, L.P. 
  
 Capital Lodging TRS HV Beverage, Inc.

  
 Billings HI Operating Company 
  
 Circa Brentwood Permit, Inc. 
  
 Capital Lodging TRS I, Corp. 
  
 Capital Lodging TRS Operations I, Inc. 
  
 Capital Lodging TRS HV East Operations, Inc. 
  
 Capital Lodging TRS HV West Operations, Inc. 
  
 Capital Lodging HV West Property Holdings, LLC 
  
 Capital Lodging HV West Properties, L.P. 
  
 Capital Lodging HV East Property Holdings, LLC 
  
 Capital Lodging HV East Properties, L.P. 
  
 Capital Lodging Property Holdings I, LLC 
  
 Capital Lodging Properties I Limited Partner, L.P. 
  
 Capital Lodging Maryland Property Holdings, LLC 
  
 Capital Lodging Maryland Properties, LLC 
  
 Capital Lodging Properties I General Partner, LLC 
  
 Capital Lodging Properties I, L.P. 
  

 1 

 SCHEDULE 6.13 
  
 SUBSIDIARIES; 
 OTHER EQUITY INVESTMENTS; 
 AND EQUITY INTERESTS IN BORROWER 
  

			
	Part (a).	  	Subsidiaries. The following corporations, limited liability companies and limited partnerships are Subsidiaries of the
Borrowers and have issued outstanding Equity Interests to the
Loan Parties in the forms and amounts set forth
opposite such Subsidiaries.

  

					
	 Corporation

	  	 Issued and Outstanding
 Common
Stock

	  	 Stockholder/Shareholder

			
	Capital Lodging TRS Holdings, Inc., a Delaware corporation	  	10 shares of common stock	  	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership
			
	Capital Lodging TRS HV Beverage, Inc., a Delaware corporation	  	10 shares of common stock	  	Capital Lodging TRS Holdings, Inc., a Delaware corporation
			
	Capital Lodging TRS I, Corp., a Delaware corporation	  	10 shares of common stock	  	Capital Lodging TRS Holdings, Inc., a Delaware corporation
			
	Capital Lodging TRS HV East Operations, Inc., a Delaware corporation	  	10 shares of common stock	  	Capital Lodging TRS Holdings, Inc., a Delaware corporation
			
	Capital Lodging TRS HV West Operations, Inc., a Delaware corporation	  	10 shares of common stock	  	Capital Lodging TRS Holdings, Inc., a Delaware corporation
			
	Capital Lodging TRS Operations II, Inc., a Delaware corporation	  	10 shares of common stock	  	Capital Lodging TRS Holdings, Inc., a Delaware corporation
			
	Capital Lodging TRS Operations I, Inc., a Delaware corporation	  	10 shares of common stock	  	Capital Lodging TRS I, Corp., a Delaware corporation
			
	Billings HI Operating Company, a Texas corporation	  	1,000 shares of common stock	  	Capital Lodging TRS HV Beverage, Inc., a Delaware corporation
			
	Circa Brentwood Permit, Inc., a Texas corporation	  	300 shares of common stock	  	Capital Lodging TRS HV Beverage, Inc., a Delaware corporation

  

			
	 Limited Liability Company

	  	 Member(s) (Ownership Interest)

	Capital Lodging Tallahassee, LLC, a Delaware limited liability company	  	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (100%)
		
	Capital Lodging Palm Springs, LLC, a Delaware limited liability company	  	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (100%)

  

 1 

			
	 Limited Liability Company

	 	 Member(s) (Ownership Interest)

	Capital Lodging Branson, LLC, a Delaware limited liability company	 	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (100%)
	Capital Lodging Stockton, LLC, a Delaware limited liability company	 	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (100%)
	Capital Lodging Charlotte University, LLC, a Delaware limited liability company	 	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (100%)
	Capital Lodging Harrisonburg, LLC, a Delaware limited liability company	 	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (100%)
	Capital Lodging Property Holdings II, LLC, a Delaware limited liability company	 	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (100%)
	Capital Lodging HV West Property Holdings, LLC, a Delaware limited liability company	 	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (100%)
	Capital Lodging HV East Property Holdings, LLC, a Delaware limited liability company	 	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (100%)
	Capital Lodging Property Holdings I, LLC, a Delaware limited liability company	 	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (100%)
	Capital Lodging Maryland Property Holdings, LLC, a Delaware limited liability company	 	Capital Lodging Properties I Limited Partner, L.P., a Delaware limited partnership (100%)
	Capital Lodging Properties I General Partner, LLC, a Delaware limited liability company	 	Capital Lodging Properties I Limited Partner, L.P., a Delaware limited partnership (100%)
	Capital Lodging Maryland Properties, LLC, a Delaware limited liability company	 	Capital Lodging Maryland Properties, LLC, a Delaware limited liability company (100%)

  

					
	 Limited Partnership

	 	 General Partner

	 	 Limited Partner
 (Ownership Interest)

	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership	 	Capital Lodging General Partner, LLC, a Delaware limited liability company (1%)	 	Capital Lodging, a Maryland real estate investment trust (99%)
	Capital Lodging Properties II, L.P., a Delaware limited partnership	 	Capital Lodging Property Holdings II, LLC, a Delaware limited liability company (1%)	 	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (99%)
	Capital Lodging HV West Properties, L.P., a Delaware limited partnership	 	Capital Lodging HV West Property Holdings, LLC, a Delaware limited liability company (1%)	 	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (99%)
	Capital Lodging HV East Properties, L.P., a Delaware limited partnership	 	Capital Lodging HV East Property Holdings, LLC, a Delaware limited liability company (1%)	 	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (99%)
	Capital Lodging Properties I Limited Partner, L.P., a Delaware limited partnership	 	Capital Lodging Property Holdings I, LLC, a Delaware limited liability company (1%)	 	Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (99%)
	Capital Lodging Properties I, L.P., a Delaware limited partnership	 	Capital Lodging Properties I General Partner, LLC, a Delaware limited liability company (1%)	 	Capital Lodging Properties I Limited Partner, L.P., a Delaware limited partnership (99%)

  

	Part (b).	Other Equity Investments. None. 

  

	Part (c).	Owners of Equity Interests in Borrower. 

  

 2 

 SCHEDULE 8.01 
  
 EXISTING LIENS 
  
 The Liens described in the Title Insurance obtained by Administrative Agent. 
  

 1 

 SCHEDULE 8.03 
  
 EXISTING INDEBTEDNESS 
  
 None 
  

 1 

 SCHEDULE 11.02 
  
 ADMINISTRATIVE AGENT’S OFFICE; 
 CERTAIN ADDRESSES FOR NOTICES 
  
 Capital
Lodging Operating Partnership, L.P. 
 c/o Capital Lodging 
 2927
Maple Avenue, Suite 503 
 Dallas, Texas 75201 

	Attention:	John D. Bailey 

	Telephone:	214.871.9809 

 Facsimile: 214.373.6243 
 Electronic Mail: jbailey@capitallodging.com 

	Website	Address: www.capitallodging.com 

  

	With	copy to: 

  
 Morgan, Lewis & Bockius LLP 
 300 S. Grand Ave, Suite 2200 
 Los Angeles, CA 90071 
 Attention: J. Michael Jack 
 Facsimile: 877.432.9652 
  
 Administrative Agent’s Office 
 (for payments and Borrowing requests) 
  
 Bank of America, N.A. 
 901 Main Street, 14th Floor 
 TX1-492-14-05 
 Dallas, TX 75202 
 Attention: Eldred Sholars 
 Telephone: 214.209.3044 
 Facsimile: 214.290.9429 
 Electronic Mail: elred.sholars@bankofamerica.com 
 ABA #:111000012 
 Account Name - Corporate Funds Transfer Account 
 Account Number - 1292000883

 Reference: CNL Hospitality Partners, LP 
 Attention: Eldred
Sholars 
  
 Administrative Agent’s Office 
 (for other notices) 
  
 Bank of America, N.A. 
 TX1-492-64-01 
 901 Main Street, 64th Floor

 Dallas, TX 75202 
 Attention: Steven P. Renwick 

	Telephone:	214.209.1867 

	Facsimile:	214.209.9390 

	Electronic	Mail: steven.p.renwick@bankofamerica.com 

  

 1 

 With copy to: 
  
 Bank of America, N.A. 
 Agency Services 
 TX1-492-14-11 
 901 Main Street, 14th Floor 
 Dallas, Texas 75202 

	Attention:	Donna Kimbrough 

	Telephone:	214.209.1569 

	Facsimile:	214.290.9436 

	Electronic	Mail: donna.f.kimbrough@bankofamerica.com 

  
 L/C ISSUER: 
  
 Bank of America, N.A. 
 Trade Operations-Los Angeles #22621 
 333 S. Beaudry Avenue, 19th Floor 
 Mail Code: CA9-703-19-23 
 Los Angeles, CA 90017-1466 
 Attention:    Herman Schutterle 
                       Vice President 

	Telephone:	213.345.0397 

	Facsimile:	213.345.6684 

	Electronic	Mail: herman.schutterle@bankofamerica.com 

  

 2 

 EXHIBIT A 
  
 FORM OF LOAN NOTICE 
  
 Date:
                        ,              
  

	To:	Bank of America, N.A., as Administrative Agent 

  
 Ladies and Gentlemen: 
  
 Reference is made to that certain Credit Agreement, dated as of August     , 2004 (as amended, restated, extended, supplemented
or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Capital Lodging Operating Partnership, L.P., a Delaware limited partnership
(“Borrower”), Capital Lodging, a Maryland real estate investment trust, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent and L/C Issuer. 
  
 The undersigned hereby requests (select one): 
  

	 	 ̈	A Borrowing of Loans                      ̈        A conversion or continuation of Loans 

  

	 	1.	On
                                       
                                        
      (a Business Day). 

  

	 	2.	In the amount of
$                                    .

  

	 	3.	Comprised of
                                       
         . 

	 	                                       
 [Type	of Loan requested] 

  

	 	4.	For Eurodollar Rate Loans: with an Interest Period of      months. 

  
 The Borrowing, if any, requested herein complies with the provisos to the first sentence of Section 2.01 of the
Agreement. 
  

							
	CAPITAL LODGING OPERATING PARTNERSHIP, L.P.
		
	By:	 	CAPITAL LODGING GENERAL PARTNER, LLC,
	 	 	 its General Partner

			
	 	 	By:	 	 CAPITAL LODGING, its Member

				
	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 Name:
                                        
                          

	 	 	 	 	 	 	 Title:
                                        
                            

  

 A- 1 
 Form of Loan Notice 

 EXHIBIT B 
  
 FORM OF NOTE 
  
 __________________________ 
  
 FOR VALUE RECEIVED, the undersigned (the “Borrower”) hereby promises to pay to
                                     or registered assigns
(the “Lender”), in accordance with the provisions of the Agreement (as hereinafter defined), the principal amount of each Loan from time to time made by the Lender to Borrower under that certain Credit Agreement, dated as of August
    , 2004 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among
Borrower, Capital Lodging, a Maryland real estate investment trust, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent and L/C Issuer. 
  
 Borrower promises to pay interest on the unpaid principal amount of each Loan from the date of such Loan until such
principal amount is paid in full, at such interest rates and at such times as provided in the Agreement. All payments of principal and interest shall be made to Administrative Agent for the account of the Lender in Dollars in immediately available
funds at Administrative Agent’s Office. If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before as well as
after judgment) computed at the per annum rate set forth in the Agreement. 
  
 This Note is one of the Notes referred to in the Agreement, is entitled to the benefits thereof and may be prepaid in whole or in part subject to the terms and conditions provided therein. This Note is also entitled
to the benefits of the Guaranties. Upon the occurrence and continuation of one or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately due and
payable all as provided in the Agreement. Loans made by the Lender shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary course of business. The Lender may also attach schedules to this Note and endorse
thereon the date, amount and maturity of its Loans and payments with respect thereto. 
  
 Borrower, for itself, its successors and assigns, hereby waives diligence, presentment, protest and demand and notice of protest, demand, dishonor and non-payment of this Note. 
  
 THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF TEXAS. 
  

													
	CAPITAL LODGING OPERATING PARTNERSHIP, L.P.
		
	By:	 	 CAPITAL LODGING GENERAL PARTNER, LLC,
  
 its General Partner

			
	 	 	By:	 	CAPITAL LODGING, its Member
				
	 	 	 	 	By:	 	 
					
	 	 	 	 	 	 	Name:	 	 
					
	 	 	 	 	 	 	Title:	 	 

  

 B - 1 
 Form of Note 

 LOANS AND PAYMENTS WITH RESPECT THERETO 
  

													
	 Date

	 	 Type of Loan
Made

	 	 Amount of Loan
Made

	  	End of Interest
Period

	  	Amount of
Principal or
Interest Paid
This Date

	  	Outstanding
Principal
Balance This
Date

	  	 Notation
 Made By

	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________
	____________	 	____________	 	____________	  	__________	  	___________	  	___________	  	___________

  

 B - 2 
 Form of Note 

 EXHIBIT C 
  
 FORM OF COMPLIANCE CERTIFICATE 
  
 Financial Statement Date:             , 
  

	To:	Bank of America, N.A., as Administrative Agent 

  
 Ladies and Gentlemen: 
  
 Reference is made to that certain Credit Agreement, dated as of August     , 2004 (as amended, restated, extended, supplemented
or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Capital Lodging Operating Partnership, L.P., a Delaware limited partnership
(“Borrower”), Capital Lodging, a Maryland real estate investment trust, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent and L/C Issuer. 
  
 The undersigned Responsible Officer hereby certifies as of the date hereof
that he/she is the
                                       
                                         
of Borrower, and that, as such, he/she is authorized to execute and deliver this Certificate to Administrative Agent on the behalf of Borrower, and that: 
  
 [Use following paragraph 1 for fiscal year-end financial statements] 
  
 1. Attached hereto as Schedule 1 are the year-end audited financial statements required by Section 7.01(a) of
the Agreement for the fiscal year of Borrower ended as of the above date, together with the report and opinion of an independent certified public accountant required by such section. 
  
 [Use following paragraph 1 for fiscal quarter-end financial statements] 
  
 1. Attached hereto as Schedule 1 are the unaudited financial
statements required by Section 7.01(b) of the Agreement for the fiscal quarter of Borrower ended as of the above date. Such financial statements fairly present the financial condition, results of operations and cash flows of Borrower and its
Subsidiaries in accordance with GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes. 
  
 2. The undersigned has reviewed and is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision, a
detailed review of the transactions and condition (financial or otherwise) of Borrower during the accounting period covered by the attached financial statements. 
  
 3. A review of the activities of Borrower during such fiscal period has been made under the supervision of the undersigned
with a view to determining whether during such fiscal period Borrower performed and observed all its Obligations under the Loan Documents, and 
  
 [select one:] 
  
 [to the best knowledge of the undersigned during such fiscal period, Borrower performed and observed each covenant and condition of the Loan Documents
applicable to it.] 
  
 —or— 
  
 [the following covenants or conditions have not been performed or observed
and the following is a list of each such Default and its nature and status:] 
  

 C - 1 
 Form of Compliance Certificate 

 4. The representations and warranties of Borrower contained in Article VI of the Agreement, and
any representations and warranties of [Borrower][any Loan Party] that are contained in any document furnished at any time under or in connection with the Loan Documents, are true and correct on and as of the date hereof, except to the extent that
such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date in each case in all material respects, and except that for purposes of this Compliance Certificate, the
representations and warranties contained in Sections 6.05(a) and (b) of the Agreement shall be deemed to refer to the most recent statements furnished pursuant to Sections 7.01(a) and (b) of the Agreement, including the
statements in connection with which this Compliance Certificate is delivered. 
  
 5. The financial covenant analyses and information set forth on Schedule 2 attached hereto are true and accurate on and as of the date of this Certificate. 
  
 IN WITNESS WHEREOF, the undersigned has executed this Certificate as
of                         ,             

  

									
	 CAPITAL LODGING OPERATING PARTNERSHIP, L.P.

		
	 By:
	 	CAPITAL LODGING GENERAL PARTNER, LLC, its General Partner
			
	 	 	 By:
	 	 CAPITAL LODGING, its Member

					
	 	 	 	 	 By:
	 	 	 	 
	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 

  

			
	 CAPITAL LODGING

		
	 By:
	 	 
	 	 	 Name: 

	 	 	 Title:

  

 C - 1 
 Form of Compliance Certificate 

 For the Quarter/Year ended
                    (“Statement Date”) 
  
 SCHEDULE 2 
 to the Compliance Certificate 
 ($in 000’s) 
  

										
	I.	 	 Section 8.06(d) – Permitted Distributions.
	  	 	  	 	 
					
	 	 	 A.
	 	Line I from prior period:	  	 	  	 	 
					
	 	 	 B.
	 	$5,000,000	  	 	  	$	5,000,000
					
	 	 	 C.
	 	Cash Available for Distribution (for the subject quarter):	  	 	  	 	 
					
	 	 	 	 	1. Consolidated EBITDA (for the subject quarter):	  	 	  	 	 
					
	 	 	 	 	2. FF&E Reserve	  	 	  	 	 
					
	 	 	 	 	3. Amount of scheduled principal payments on Consolidated Indebtedness (for the subject quarter):	  	 	  	 	 
					
	 	 	 	 	4. Consolidated Interest Charges (for the subject quarter):	  	 	  	 	 
					
	 	 	 	 	5. Cash Available for Distribution (for the subject quarter)(I.C.1-2-3-4):	  	 	  	 	 
					
	 	 	 D.
	 	Permitted Distributions (A+B+C):	  	 	  	 	 
					
	 	 	 E.
	 	Line H from prior period:	  	 	  	 	 
					
	 	 	 F.
	 	Dividends or distributions paid by Parent (for the subject quarter):	  	 	  	 	 
					
	 	 	 G.
	 	Retirement, purchase, or redemption of any of its Equity Interests (for the subject quarter):	  	 	  	 	 
					
	 	 	 H.
	 	Cumulative Restricted Payments (E+F+G):	  	 	  	 	 
					
	 	 	 I.
	 	Excess (deficit) for covenant compliance (D-H):	  	 	  	 	 
					
	 	 	 J.
	 	If deficit in I, has Parent made dividends or distributions in excess of minimum required to maintain REIT status? (yes or no):	  	 	  	 	 
	 	 	 	 	(If J=“yes,” then not in compliance)	  	 	  	 	 
				
	II.	 	Section 8.13(a) – Consolidated Tangible Net Worth.	  	 	  	 	 
					
	 	 	A.	 	 Actual Consolidated Tangible Net Worth at Statement Date:
	  	 	  	 	 
					
	 	 	 	 	 1.      Shareholders’ Equity:
	  	$	  	 	 
					
	 	 	 	 	 2.      Intangible Assets:
	  	$	  	 	 
					
	 	 	 	 	 3.      Non-cash gains or losses
	  	$	  	 	 

  

 C - 1 
 Form of Compliance Certificate 

									
					
	 	 	 	 	 4.      Consolidated Tangible Net Worth (Line II.A.1. less Line II.A.2. less (or plus, as applicable
(Line II.A.3)):
	 	$	  	 
					
	 	 	B.	 	85% of increases in Shareholders’ Equity after date of Agreement from issuance and sale of capital stock or other equity interests (including from conversion of debt
securities):	 	$	  	 
					
	 	 	C.	 	Minimum required Consolidated Tangible Net Worth (Line II.B. + $            ):	 	$	  	 
					
	 	 	D.	 	Excess (deficient) for covenant compliance (Line II.A. – II.C.):	 	$	  	 
				
	III.	 	Section 8.13(b) – Consolidated Leverage Ratio.	 	 	  	 
					
	 	 	A.	 	Consolidated Funded Indebtedness at Statement Date:	 	$	  	 
					
	 	 	B.	 	Consolidated EBITDA (see IV.A. below):	 	$	  	 
					
	 	 	C.	 	Consolidated Leverage Ratio (Line III.A. ÷ Line III.B.):	 	 	  	%
					
	IV.	 	 	 	Section 8.13(c) – Consolidated Fixed Charge Coverage Ratio.	 	 	  	 
					
	 	 	A.	 	Consolidated EBITDA:	 	 	  	 
					
	 	 	 	 	 1.      Consolidated Net Income for Subject Period:
	 	$	  	 
					
	 	 	 	 	 2.      Consolidated Interest Charges for Subject Period:
	 	$	  	 
					
	 	 	 	 	 3.      Provision for income taxes for Subject Period:
	 	$	  	 
					
	 	 	 	 	 4.      Depreciation expenses for Subject Period:
	 	$	  	 
					
	 	 	 	 	 5.      Amortization expenses for intangibles for Subject Period:
	 	$	  	 
					
	 	 	 	 	 6.      Consolidated EBITDA (Lines IV.A.1 + 2 + 3 + 4 + 5):
	 	$	  	 
					
	 	 	 	 	 7.      Non-cash items increasing Consolidated Net Income for Subject Period:
	 	$	  	 
					
	 	 	 	 	 8.      FF&E Reserves:
	 	$	  	 
					
	 	 	 	 	 9.      Line IV.A.6 – 7– 8
	 	$	  	 
					
	 	 	B.	 	Fixed Charges:	 	 	  	 
					
	 	 	 	 	 1.      Debt service:
	 	$	  	 
					
	 	 	 	 	 2.      Preferred dividends:
	 	$	  	 
					
	 	 	 	 	 3.      Fixed Charges (Line IV.B.1 plus Line IV.B.2):
	 	$	  	 
					
	 	 	C.	 	Consolidated Fixed Charge Coverage Ratio (Line IV.A.8. ÷ IV.B.3):	 	 	  	to 1
				
	V.	 	Section 8.13(d) – Borrowing Base Debt Service Coverage Ratio.	 	 	  	 
					
	 	 	A.	 	Adjusted NOI:	 	 	  	 
					
	 	 	 	 	 1.      All lease payments pursuant to the Operating Leases for the Subject Period:
	 	$	  	 

  

 C - 2 
 Form of Compliance Certificate 

									
	 	 	 	 	 2.      Any ground lease payments:
	 	$	  	 
	 	 	 	 	 3.      Accruals of annual taxes, insurance, or other operating expenses payable by the owner of each
Borrowing Base Property:
	 	 	  	 
	 	 	 	 	 	 	 	  	 
	 	 	 	 	 	 	$	  	 
	 	 	 	 	 4.      FF&E Reserves:
	 	$	  	 
	 	 	 	 	 5.      Management Fee Reserves:
	 	$	  	 
	 	 	 	 	 6.      Adjusted NOI (Lines V.A.1 - 2 - 3 - 4 - 5):
	 	$	  	 
					
	 	 	B.	 	Implied Debt Service:	 	$	  	 
					
	 	 	C.	 	Borrowing Base Debt Service Coverage Ratio (Line V.A.6. ÷ V.B):	 	 	  	to 1

  

 C - 3 
 Form of Compliance Certificate 

 EXHIBIT D 
  
 ASSIGNMENT AND ASSUMPTION 
  
 This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into
by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein shall have the meanings given to them in the
Credit Agreement identified below (as amended, supplemented, or otherwise modified in accordance with the provisions thereof, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard
Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full. 
  
 For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by Administrative
Agent as contemplated below (i) all of the Assignor’s rights and obligations as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest
identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including, without limitation, the Letters of Credit included in such facilities1) and (ii) to the extent permitted
to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any
other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory
claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as, the “Assigned Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

  

	1.	Assignor:
                                        
                         

  

	2.	Assignee:
                                        
         [and is an Affiliate/Approved Fund of [identify Lender]2]

  

	3.	Borrower(s): Capital Lodging Operating Partnership, L.P. 

  

	4.	Administrative Agent: Bank of America, N.A., as Administrative Agent under the Credit Agreement 

	1	Include all applicable subfacilites. 

  

	2	Select as applicable. 

  

 D - 1 
 Form of Assignment and Assumption 

	5.	Credit Agreement: Credit Agreement, dated as of August     , 2004, among Borrower, Capital Lodging, a Maryland real estate investment trust, the
Lenders from time to time party thereto, and Administrative Agent and L/C Issuer. 

  

	6.	Assigned Interest:3

  

											
	 Facility Assigned4

	  	 Aggregate
 Amount of
 Commitment
 for all Lenders*

	  	 Amount of
 Commitment
 Assigned*

	  	 Percentage
 Assigned of
 Commitment

	 	CUSIP Number

	 _____________
	  	$	                                    	  	$	                                    	  	                                %	 	 
	 _____________
	  	$	                                    	  	$	                                    	  	                                %	 	 
	 _____________
	  	$	                                    	  	$	                                    	  	                                %	 	 

  

	[7.	Trade Date:
                            ]5 

  
 Effective Date:                             ,
20     [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 
  
 The terms set forth in this Assignment and Assumption are hereby agreed to: 
  

			
	ASSIGNOR
	[NAME OF ASSIGNOR]
		
	By:	 	 
	 	 	 Title:

	
	ASSIGNEE
	[NAME OF ASSIGNEE]
		
	By:	 	 
	 	 	 Title:

	*	Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date. 

  

	3	The reference to “Loans” in the table should be used only if the Credit Agreement provides for Term Loans. 

  

	4	Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned under this Assignment (e.g. “Revolving Credit
Commitment”, “Term Loan Commitment”, etc.). 

  

	5	To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date. 

  
 D - 2 
 Form of Assignment and Assumption 
  

			
	 Consented to and Accepted:

	
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	 
	 	 	 Title:

  

 D - 3 
 Form of Assignment and Assumption 

 [Consented to:]6 
  

									
	CAPITAL LODGING OPERATING PARTNERSHIP, L.P.
		
	 By:
	 	 CAPITAL LODGING GENERAL PARTNER, LLC,
 its General Partner

			
	 	 	 By:
	 	 CAPITAL LODGING, its Member

				
	 	 	 	 	 By:
	 	 
					
	 	 	 	 	 	 	 Name:
	 	 
					
	 	 	 	 	 	 	 Title:
	 	 

	6	To be added only if the consent of the Borrower and/ or other parties(e.g. L/C Issurer) is Required by the terms of the Credit Agreement. 

 

 D - 4 
 Form of Assignment and Assumption 

 ANNEX 1 TO ASSIGNMENT AND ASSUMPTION 
  
 STANDARD TERMS AND CONDITIONS FOR 
  
 ASSIGNMENT AND ASSUMPTION 
  
 1. Representations and Warranties. 
  
 1.1. Assignor. The Assignor (a) represents and warrants that (i) it is
the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or
any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of Borrower, any of its Subsidiaries or Affiliates
or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document. 
  
 1.2. Assignee. The Assignee (a) represents and warrants that (i) it
has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all
requirements of an Eligible Assignee under the Credit Agreement (subject to receipt of such consents as may be required under the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement
as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered
pursuant to Sections 7.1(a) and (b) thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase
the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, attached hereto is any documentation required to be
delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee, and (b) agrees that (i) it will, independently and without reliance on Administrative Agent, the Assignor or any other Lender, and based on
such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be performed by it as a Lender. 
  
 2. Payments. From and after the Effective Date, Administrative Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date. 
  
 3. General Provisions. This Assignment and Assumption shall be binding
upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed
counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of Texas. 
  

 D - 1 
 Form of Assignment and Assumption 

 EXHIBIT E-1 
  
 FORM OF PARENT GUARANTY 
  
 THIS PARENT GUARANTY AGREEMENT (this “Guaranty”) is entered into as of August       , 2004, by
CAPITAL LODGING, a Maryland real estate investment trust (“Guarantor”), in favor of BANK OF AMERICA, N.A., as administrative agent (in such capacity, “Administrative Agent”) for the banks and other
financial institutions (“Lenders”) that are parties to the Credit Agreement described below. 
  
 Capital Lodging Operating Partnership, L.P., a Delaware limited partnership (“Borrower”), is a party to the Credit Agreement dated as of
the date of this Agreement (as the same may be amended, supplemented or modified from time to time, the “Credit Agreement”) among Borrower, Guarantor, Lenders, and Administrative Agent, pursuant to which Lenders have agreed, among
other things, to make Loans to Borrower. Capitalized terms not defined herein shall have the meanings assigned to such terms in the Credit Agreement. 
  
 Borrower is a direct Subsidiary of Guarantor; 
  
 Borrower and Guarantor are engaged in related businesses, and Guarantor will derive substantial direct and indirect benefit from the making of the Loans;

  
 It is a condition precedent to the obligations of Lenders to
make the Loans that Guarantor shall execute and deliver this Guaranty in favor of Administrative Agent for the benefit of Lenders; 
  
 NOW THEREFORE, FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in consideration of the Loans, any credit and/or financial
accommodation heretofore or hereafter from time to time made or granted to Borrower under the Loan Documents by Administrative Agent and Lenders, Guarantor hereby furnishes its guaranty of the Guaranteed Obligations (as hereinafter defined) as
follows: 
  
 1. Guaranty. Guarantor hereby absolutely,
irrevocably and unconditionally guarantees, as a guarantee of payment and not merely as a guarantee of collection, prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all times thereafter, of the Obligations
and any and all other existing and future indebtedness and liabilities of every kind, nature and character, direct or indirect, absolute or contingent, liquidated or unliquidated, voluntary or involuntary, of Borrower to Administrative Agent and
Lenders arising under the Credit Agreement and the Loan Documents and all instruments, agreements and other documents of every kind and nature now or hereafter executed in connection with any Loan Document (including all renewals, extensions and
modifications thereof and all costs, attorneys’ fees and expenses incurred by the Lender in connection with the collection or enforcement thereof) (collectively, the “Guaranteed Obligations”). The books and records of
Administrative Agent or any Lender showing the amount of the Guaranteed Obligations shall be admissible in evidence in any action or proceeding, and shall be binding upon Guarantor and conclusive, absent manifest error, for the purpose of
establishing the amount of the Guaranteed Obligations. This Guaranty shall not be affected by the genuineness, validity, regularity or enforceability of the Guaranteed Obligations or any instrument or agreement evidencing any Guaranteed Obligations,
or by the existence, validity, enforceability, perfection, or extent of any collateral therefor, or by any fact or circumstance relating to the Guaranteed Obligations which might otherwise constitute a defense to the obligations of any Guarantor
under this Guaranty. 
  
 2. No Setoff or Deductions; Taxes.
Guarantor represents and warrants that it is incorporated or formed, and resides in, the United States of America. All payments by Guarantor 

  

 E - 1 
 Form of Parent Guaranty 

 
hereunder shall be paid in full, without setoff or counterclaim (other than mandatory) or any deduction or withholding whatsoever, including, without
limitation, for any and all present and future taxes other than Excluded Taxes. If Guarantor must make a payment under this Guaranty, Guarantor represents and warrants that it will make the payment from one of its U.S. resident offices to
Administrative Agent or each Lender so that no withholding tax is imposed on the payment. If notwithstanding the foregoing, Guarantor makes a payment under this Guaranty to which withholding tax applies, or any taxes (other than taxes on income (a)
imposed by the country or any subdivision of the country in which the principal office or actual lending office of Administrative Agent or any Lender is located and (b) measured by the United States taxable income of Administrative Agent or any
Lender would have received if all payments under or in respect of this Guaranty were exempt from taxes levied by such Guarantor’s country) are at any time imposed on any payments under or in respect of this Guaranty including, but not limited
to, payments made pursuant to this Paragraph 2, Guarantor shall pay all such taxes to the relevant authority in accordance with applicable law such that Administrative Agent or any Lender receives the sum it would have received had no such
deduction or withholding been made and shall also pay to Administrative Agent or any Lender, on demand, all additional amounts which Administrative Agent or any Lender specifies as necessary to preserve the after-tax yield Administrative Agent or
such Lender would have received if such taxes had not been imposed. Guarantor shall promptly provide Administrative Agent or any Lender with an original receipt or certified copy issued by the relevant authority evidencing the payment of any such
amount required to be deducted or withheld. 
  
 3. No
Termination. This Guaranty is a continuing and irrevocable guaranty of all Guaranteed Obligations now or hereafter existing and shall remain in full force and effect until all Guaranteed Obligations and any other amounts payable under this
Guaranty are indefeasibly paid and performed in full and any commitments of the Lender or facilities provided by the Lender with respect to the Guaranteed Obligations are terminated. At Administrative Agent or any Lender’s option, all payments
under this Guaranty shall be made to an office of Administrative Agent or any Lender located in the United States and in Dollars. 
  
 4. Waiver of Notices. Guarantor waives notice of the acceptance of this Guaranty and of the extension or continuation of the Guaranteed Obligations
or any part thereof. Guarantor further waives presentment, protest, notice, dishonor or default, notice of intention to accelerate, notice of acceleration, demand for payment and any other notices to which Guarantor might otherwise be entitled.

  
 5. Subrogation. Guarantor shall exercise no right of
subrogation, contribution or similar rights with respect to any payments it makes under this Guaranty until all of the Guaranteed Obligations and any amounts payable under this Guaranty are indefeasibly paid and performed in full and any commitments
of Lenders or facilities provided by Lenders with respect to the Guaranteed Obligations are terminated. If any amounts are paid to any Guarantor in violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of
Lenders and shall forthwith be paid to Lenders to reduce the amount of the Guaranteed Obligations, whether matured or unmatured. 
  
 6. Waiver of Suretyship Defenses. Guarantor agrees that Lenders may, at any time and from time to time, and without notice to any Guarantor, make
any agreement with Borrower or with any other person or entity liable on any of the Guaranteed Obligations or providing collateral as security for the Guaranteed Obligations, for the extension, renewal, payment, compromise, discharge or release of
the Guaranteed Obligations or any Collateral (in whole or in part), or for any modification or amendment of the terms thereof or of any instrument or agreement evidencing the Guaranteed Obligations or the 

  

 E - 1 
 Form of Parent Guaranty 

 
provision of Collateral, all without in any way impairing, releasing, discharging or otherwise affecting the obligations of Guarantor under this Guaranty.
Guarantor waives any defense arising by reason of any disability or other defense of Borrower or any other guarantor, or the cessation from any cause whatsoever of the liability of Borrower, or any claim that Guarantor’s obligations exceed or
are more burdensome than those of Borrower and waives the benefit of any statute of limitations affecting the liability of Guarantor hereunder to the fullest extent permitted by law. Guarantor waives any right to enforce any remedy which
Administrative Agent or any Lender now has or may hereafter have against Borrower and waives any benefit of and any right to participate in any security now or hereafter held by Administrative Agent for the benefit of Lenders. Further, Guarantor
consents to the taking of, or failure to take, any action which might in any manner or to any extent vary the risks of Guarantor under this Guaranty or which, but for this provision, might operate as a discharge of Guarantor. 
  
 7. Exhaustion of Other Remedies Not Required. The obligations of
Guarantor hereunder are those of primary obligor, and not merely as surety, and are independent of the Guaranteed Obligations. Guarantor waives diligence by Administrative Agent or any Lender and action on delinquency in respect of the Guaranteed
Obligations or any part thereof, including, without limitation any provisions of law requiring Administrative Agent or any Lender to exhaust any right or remedy or to take any action against Borrower, any other guarantor or any other person, entity
or property before enforcing this Guaranty against Guarantor. 
  
 8. Reinstatement. Notwithstanding anything in this Guaranty to the contrary, this Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any portion of the Guaranteed Obligations
is revoked, terminated, rescinded or reduced or must otherwise be restored or returned upon the insolvency, bankruptcy or reorganization of Borrower or any other person or entity or otherwise, as if such payment had not been made and whether or not
the Lender is in possession of or has released this Guaranty and regardless of any prior revocation, rescission, termination or reduction. 
  
 9. Subordination. Guarantor hereby subordinates the payment of all obligations and indebtedness of Borrowers owing to Guarantor, whether now
existing or hereafter arising, including but not limited to any obligation of Borrower to any Guarantor as subrogee of Administrative Agent or any Lender or resulting from Guarantor’s performance under this Guaranty, to the indefeasible payment
in full of all Guaranteed Obligations. If Administrative Agent or any Lender so requests, any such obligation or indebtedness of Borrower to Guarantor shall be enforced and performance received by Guarantor as trustee for Administrative Agent or any
Lender and the proceeds thereof shall be paid over to Administrative Agent or any Lender on account of the Guaranteed Obligations, but without reducing or affecting in any manner the liability of Guarantor under this Guaranty. 
  
 10. Information. Guarantor agrees to furnish promptly to
Administrative Agent or any Lender any and all financial or other information regarding such Guarantor or its property as Administrative Agent or any Lender may reasonably request in writing. 
  
 11. Stay of Acceleration. In the event that acceleration of the time
for payment of any of the Guaranteed Obligations is stayed, upon the insolvency, bankruptcy or reorganization of Borrower or any other person or entity, or otherwise, all such amounts shall nonetheless be payable by Guarantor immediately upon demand
by Administrative Agent or any Lender. 
  

 E - 1 
 Form of Parent Guaranty 

 12. Expenses. Guarantor shall pay on demand all out-of-pocket expenses (including reasonable
attorneys’ fees and expenses and the allocated cost and disbursements of internal legal counsel) in any way relating to the enforcement or protection of the rights of Administrative Agent or any Lender under this Guaranty, including any
incurred in the preservation, protection or enforcement of any rights of Administrative Agent or any Lender in any case commenced by or against any Guarantor under the Bankruptcy Code (Title 11, United States Code) or any similar or successor
statute. The obligations of Guarantor under the preceding sentence shall survive termination of this Guaranty. 
  
 13. Amendments. No provision of this Guaranty may be waived, amended, supplemented or modified, except by a written instrument executed by
Administrative Agent for the benefit of the Lender and Guarantor. 
  
 14. No Waiver; Enforceability. No failure by Administrative Agent or any Lender to exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a waiver thereof; nor shall any single or partial exercise
of any right, remedy or power hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law or in equity. The
unenforceability or invalidity of any provision of this Guaranty shall not affect the enforceability or validity of any other provision herein. 
  
 15. Assignment; Governing Laws; Jurisdiction. This Guaranty shall (a) bind Guarantor and its successors and assigns, provided that Guarantor
may not assign its rights or obligations under this Guaranty without the prior written consent of Administrative Agent and Lenders (and any attempted assignment without such consent shall be void), (b) inure to the benefit of Administrative Agent
and Lenders and its successors and assigns and Administrative Agent or any Lender may, without notice to any Guarantor and without affecting any Guarantor’s obligations hereunder, assign or sell participations in the Guaranteed Obligations and
this Guaranty, in whole or in part, and (c) be governed by the internal laws of the State of Texas without application of its conflicts of laws principles. Guarantor hereby irrevocably (i) submits to the non-exclusive jurisdiction of any United
States Federal or State court sitting in Dallas, Texas in any action or proceeding arising out of or relating to this Guaranty, and (ii) waives to the fullest extent permitted by law any defense asserting an inconvenient forum in connection
therewith. Service of process by Administrative Agent or any Lender in connection with such action or proceeding shall be binding on Guarantor if sent to such Guarantor by registered or certified mail at its address specified in Schedule
10.02 of the Credit Agreement. Guarantor agrees that Administrative Agent or any Lender may disclose to any prospective purchaser and any purchaser of all or part of the Guaranteed Obligations any and all information in the possession of
Administrative Agent or any Lender concerning Guarantor, this Guaranty and any security for this Guaranty. 
  
 16. Condition of Borrower. Guarantor acknowledges and agrees that it has the sole responsibility for, and has adequate means of, obtaining from
Borrower such information concerning the financial condition, business and operations of Borrower as such Guarantor requires, and that neither Administrative Agent nor any Lender has any duty, and Guarantor is not relying on Administrative Agent or
any Lender at any time, to disclose to Guarantor any information relating to the business, operations or financial condition of Borrower. 
  

 E - 1 
 Form of Parent Guaranty 

 17. Setoff. If and to the extent any payment is not made when due hereunder, Administrative Agent
and each Lender may setoff and charge from time to time any amount so due against any or all of Guarantor’s accounts or deposits with Administrative Agent or such Lender. 
  
 18. Other Guarantees. Unless otherwise agreed by Administrative Agent and Lenders and Guarantor in writing, this
Guaranty is not intended to supersede or otherwise affect any other guaranty now or hereafter given by Guarantor for the benefit of the Lender or any term or provision thereof. 
  
 19. Representations and Warranties. Guarantor represents and warrants that (a) it is duly organized and in good
standing under the laws of the jurisdiction of its organization and has full capacity and right to make and perform this Guaranty, and all necessary authority has been obtained; (b) this Guaranty constitutes its legal, valid and binding obligation
enforceable in accordance with its terms; (c) the making and performance of this Guaranty does not and will not violate the provisions of any applicable law, regulation or order, and does not and will not result in the breach of, or constitute a
default or require any consent under, any material agreement, instrument, or document to which it is a party or by which it or any of its property may be bound or affected; (d) all consents, approvals, licenses and authorizations of, and filings and
registrations with, any governmental authority required under applicable law and regulations for the making and performance of this Guaranty have been obtained or made and are in full force and effect; (e) by virtue of its relationship with
Borrower, the execution, delivery and performance of this Guaranty is for the direct benefit of Guarantor and each has received adequate consideration for this Guaranty; and (f) the financial information that has been delivered to Lenders by or on
behalf of Guarantor is complete and correct in all material respects and accurately presents the financial condition and the operational results of such Guarantor and since the date of the most recent financial statements delivered to Lenders, there
has been no material adverse change in the financial condition or operational results of such Guarantor. 
  
 20. Loan Documents. By execution hereof, Guarantor covenants and agrees that certain representations and warranties set forth in the Loan Documents
are applicable to Guarantor, and Guarantor reaffirms that each such representation and warranty is true and correct in every material respect. Guarantor acknowledges and agrees that this Guaranty is subject to the offset provisions of the Loan
Documents in favor of Administrative Agent. If the Credit Agreement shall cease to remain in effect for any reason whatsoever during any period and any part of the Guaranteed Obligations remain unpaid, then the terms, covenants, and agreements
incorporated herein by reference shall nevertheless continue in full force and effect as obligations of Guarantor under this Guaranty. Guarantor shall take, or refrain from taking, as the case may be, each action that is necessary to be taken or not
taken, as the case may be, so that no Event of Default is caused by the failure to take or refrain from taking such action, as the case may be. 
  
 21. Authority of Administrative Agent. Guarantor acknowledges that the rights and responsibilities of Administrative Agent under this Guaranty with
respect to any action taken by Administrative Agent or the exercise or non-exercise by Administrative Agent of any option, right, request, judgment or other right or remedy provided for herein or resulting or arising out of this Guaranty shall, as
between Administrative Agent and Lenders, be governed by the Credit Agreement and by such other agreements with respect thereto as may exist from time to time among them, but, as between Administrative Agent and such Guarantor, Administrative Agent
shall be conclusively presumed to be acting as agent for Lenders with full and valid authority so to act or refrain from acting, 

  

 E - 1 
 Form of Parent Guaranty 

 
and no Guarantor shall be under any obligation, or entitlement, to make any inquiry respecting such authority. 
  
 22. WAIVER OF JURY TRIAL; AND FINAL AGREEMENT. TO THE EXTENT ALLOWED
BY APPLICABLE LAW, GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER EACH WAIVE TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING ON OR ARISING OUT OF THIS GUARANTY. THIS GUARANTY REPRESENTS THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
  
 23. Counterparts. This Guaranty may be executed by one or more of the parties hereto on any number of separate
counterparts and all of the said counterparts taken together shall be deemed to constitute one and the same instrument. 
  
 REMAINDER OF PAGE INTENTIONALLY BLANK. 
 SIGNATURE PAGE FOLLOWS. 
  

 E - 1 
 Form of Parent Guaranty 

 IN WITNESS WHEREOF, the undersigned has caused this Guaranty to be duly executed and delivered as of the
date first above written. 
  

			
	GUARANTOR:
	
	CAPITAL LODGING, a Maryland real estate investment trust
		
	By:	 	 
	 	 	 John D. Bailey

	 	 	 Chief Financial Officer, Secretary and Treasurer

  

 E - 1 
 Form of Parent Guaranty 

 EXHIBIT E-2 
  
 FORM OF SUBSIDIARY GUARANTY 
  

THIS SUBSIDIARY GUARANTY AGREEMENT (this “Guaranty”) is entered into as of August
        , 2004, by each of the Subsidiaries listed on Schedule 1 attached hereto (collectively, “Guarantors” and each individually, a “Guarantor”), in favor of
Bank of America, N.A., as administrative agent (in such capacity, “Administrative Agent”) for the banks and other financial institutions (“Lenders”) that are parties to the Credit Agreement described below.

  
 Capital Lodging Operating Partnership, L.P., a Delaware
limited partnership (“Borrower”), is a party to the Credit Agreement dated as of the date of this Agreement (as the same may be amended, supplemented or modified from time to time, the “Credit Agreement”) among
Borrower, Capital Lodging, Lenders, and Administrative Agent, pursuant to which Lenders have agreed, among other things, to make Loans to Borrower. Capitalized terms not defined herein shall have the meanings assigned to such terms in the Credit
Agreement. 
  
 Borrower is a member of an affiliated group of
entities that includes each Guarantor; 
  
 Borrower and Guarantors
are engaged in related businesses, and each Guarantor will derive substantial direct and indirect benefit from the making of the Loans; 
  
 It is a condition precedent to the obligations of Lenders to make the Loans that Guarantors shall execute and deliver this Guaranty in favor of
Administrative Agent for the benefit of Lenders; 
  
 NOW
THEREFORE, FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in consideration of the Loans, any credit and/or financial accommodation heretofore or hereafter from time to time made or granted to Borrower under the Loan
Documents by Administrative Agent and Lenders, each of the undersigned Guarantors hereby jointly and severally furnishes its guaranty of the Guaranteed Obligations (as hereinafter defined) as follows: 
  
 1. Guaranty. Each of the Guarantors hereby, jointly and severally,
absolutely, irrevocably and unconditionally guarantees, as a guarantee of payment and not merely as a guarantee of collection, prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all times thereafter, of the
Obligations and any and all other existing and future indebtedness and liabilities of every kind, nature and character, direct or indirect, absolute or contingent, liquidated or unliquidated, voluntary or involuntary, of Borrower to Administrative
Agent and Lenders arising under the Credit Agreement and the Loan Documents and all instruments, agreements and other documents of every kind and nature now or hereafter executed in connection with any Loan Document (including all renewals,
extensions and modifications thereof and all costs, attorneys’ fees and expenses incurred by the Lender in connection with the collection or enforcement thereof) (collectively, the “Guaranteed Obligations”). The books and
records of Administrative Agent or any Lender showing the amount of the Guaranteed Obligations shall be admissible in evidence in any action or proceeding, and shall be binding upon Guarantor and conclusive, absent manifest error, for the purpose of
establishing the amount of the Guaranteed Obligations. This Guaranty shall not be affected by the genuineness, validity, regularity or enforceability of the Guaranteed Obligations or any instrument or agreement evidencing any Guaranteed Obligations,
or by the existence, validity, enforceability, perfection, or extent of any collateral therefor, or 

  

 E - 2 - 
 Form of Subsidiary Guaranty 

 
by any fact or circumstance relating to the Guaranteed Obligations which might otherwise constitute a defense to the obligations of any Guarantor under this
Guaranty. Notwithstanding any contrary provision, it is the intention of each Guarantor and Administrative Agent that the amount of the Guaranteed Obligations guaranteed by each Guarantor by this Guaranty shall be in, but not in excess of, the
maximum amount permitted by fraudulent conveyance, fraudulent transfer, or similar laws applicable to each Guarantor. Accordingly, notwithstanding anything to the contrary contained in this Guaranty or any other agreement or instrument executed in
connection with the payment of any of the Guaranteed Obligations, the amount of the Guaranteed Obligations guaranteed by each Guarantor by this Guaranty shall be limited to an aggregate amount equal to the largest amount that would not render each
Guarantor’s obligations hereunder subject to avoidance under Section 548 of the United States Bankruptcy Code or any comparable provision of any applicable state law. 
  
 2. No Setoff or Deductions; Taxes. Each Guarantor represents and warrants that it is incorporated or formed, and
resides in, the United States of America. All payments by each Guarantor hereunder shall be paid in full, without setoff or counterclaim (other than mandatory) or any deduction or withholding whatsoever, including, without limitation, for any and
all present and future taxes other than Excluded Taxes. If each Guarantor must make a payment under this Guaranty, each Guarantor represents and warrants that it will make the payment from one of its U.S. resident offices to Administrative Agent or
each Lender so that no withholding tax is imposed on the payment. If notwithstanding the foregoing, each Guarantor makes a payment under this Guaranty to which withholding tax applies, or any taxes (other than taxes on income (a) imposed by the
country or any subdivision of the country in which the principal office or actual lending office of Administrative Agent or any Lender is located and (b) measured by the United States taxable income of Administrative Agent or any Lender would have
received if all payments under or in respect of this Guaranty were exempt from taxes levied by such Guarantor’s country) are at any time imposed on any payments under or in respect of this Guaranty including, but not limited to, payments made
pursuant to this Paragraph 2, each Guarantor shall pay all such taxes to the relevant authority in accordance with applicable law such that Administrative Agent or any Lender receives the sum it would have received had no such deduction or
withholding been made and shall also pay to Administrative Agent or any Lender, on demand, all additional amounts which Administrative Agent or any Lender specifies as necessary to preserve the after-tax yield Administrative Agent or such Lender
would have received if such taxes had not been imposed. Each Guarantor shall promptly provide Administrative Agent or any Lender with an original receipt or certified copy issued by the relevant authority evidencing the payment of any such amount
required to be deducted or withheld. 
  
 3. No Termination.
This Guaranty is a continuing and irrevocable guaranty of all Guaranteed Obligations now or hereafter existing and shall remain in full force and effect until all Guaranteed Obligations and any other amounts payable under this Guaranty are
indefeasibly paid and performed in full and any commitments of the Lender or facilities provided by the Lender with respect to the Guaranteed Obligations are terminated. At Administrative Agent or any Lender’s option, all payments under this
Guaranty shall be made to an office of Administrative Agent or any Lender located in the United States and in Dollars. 
  
 4. Waiver of Notices. Each Guarantor waives notice of the acceptance of this Guaranty and of the extension or continuation of the Guaranteed
Obligations or any part thereof. Each Guarantor further waives presentment, protest, notice, dishonor or default, notice of intention to accelerate, notice of acceleration, demand for payment and any other notices to which each Guarantor might
otherwise be entitled. 
  
 5. Subrogation. Each Guarantor
shall exercise no right of subrogation, contribution or similar rights with respect to any payments it makes under this Guaranty until all of the Guaranteed 

  

 E - 2 - 
 Form of Subsidiary Guaranty 

 
Obligations and any amounts payable under this Guaranty are indefeasibly paid and performed in full and any commitments of Lenders or facilities provided by
Lenders with respect to the Guaranteed Obligations are terminated. If any amounts are paid to any Guarantor in violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of Lenders and shall forthwith be paid to
Lenders to reduce the amount of the Guaranteed Obligations, whether matured or unmatured. 
  
 6. Waiver of Suretyship Defenses. Each Guarantor agrees that Lenders may, at any time and from time to time, and without notice to any Guarantor, make any agreement with Borrower or with any other person or
entity liable on any of the Guaranteed Obligations or providing collateral as security for the Guaranteed Obligations, for the extension, renewal, payment, compromise, discharge or release of the Guaranteed Obligations or any Collateral (in whole or
in part), or for any modification or amendment of the terms thereof or of any instrument or agreement evidencing the Guaranteed Obligations or the provision of Collateral, all without in any way impairing, releasing, discharging or otherwise
affecting the obligations of Guarantors under this Guaranty. Each Guarantor waives any defense arising by reason of any disability or other defense of Borrower or any other guarantor, or the cessation from any cause whatsoever of the liability of
Borrower, or any claim that each Guarantor’s obligations exceed or are more burdensome than those of Borrower and waives the benefit of any statute of limitations affecting the liability of each Guarantor hereunder to the fullest extent
permitted by law. Each Guarantor waives any right to enforce any remedy which Administrative Agent or any Lender now has or may hereafter have against Borrower and waives any benefit of and any right to participate in any security now or hereafter
held by Administrative Agent for the benefit of Lenders. Further, each Guarantor consents to the taking of, or failure to take, any action which might in any manner or to any extent vary the risks of each Guarantor under this Guaranty or which, but
for this provision, might operate as a discharge of each Guarantor. 
  
 7. Exhaustion of Other Remedies Not Required. The obligations of each Guarantor hereunder are those of primary obligor, and not merely as surety, and are independent of the Guaranteed Obligations. Each Guarantor waives diligence by
Administrative Agent or any Lender and action on delinquency in respect of the Guaranteed Obligations or any part thereof, including, without limitation any provisions of law requiring Administrative Agent or any Lender to exhaust any right or
remedy or to take any action against Borrower, any other guarantor or any other person, entity or property before enforcing this Guaranty against each Guarantor. 
  
 8. Reinstatement. Notwithstanding anything in this Guaranty to the contrary, this Guaranty shall continue to be
effective or be reinstated, as the case may be, if at any time any payment of any portion of the Guaranteed Obligations is revoked, terminated, rescinded or reduced or must otherwise be restored or returned upon the insolvency, bankruptcy or
reorganization of Borrower or any other person or entity or otherwise, as if such payment had not been made and whether or not the Lender is in possession of or has released this Guaranty and regardless of any prior revocation, rescission,
termination or reduction. 
  
 9. Subordination. Each
Guarantor hereby subordinates the payment of all obligations and indebtedness of Borrowers owing to each Guarantor, whether now existing or hereafter arising, including but not limited to any obligation of Borrower to any Guarantor as subrogee of
Administrative Agent or any Lender or resulting from each Guarantor’s performance under this Guaranty, to the indefeasible payment in full of all Guaranteed Obligations. If Administrative Agent or any Lender so requests, any such obligation or
indebtedness of Borrower to each Guarantor shall be enforced and performance received by each Guarantor as trustee for Administrative Agent or any Lender and the proceeds thereof shall be paid over to Administrative Agent or any Lender on account of
the Guaranteed Obligations, but without reducing or affecting in any manner the liability of each Guarantor under this Guaranty. 
  

 E -2 - 
 Form of Subsidiary Guaranty 

 10. Information. Each Guarantor agrees to furnish promptly to Administrative Agent or any Lender
any and all financial or other information regarding such Guarantor or its property as Administrative Agent or any Lender may reasonably request in writing. 
  
 11. Stay of Acceleration. In the event that acceleration of the time for payment of any of the Guaranteed Obligations is stayed, upon the
insolvency, bankruptcy or reorganization of Borrower or any other person or entity, or otherwise, all such amounts shall nonetheless be payable by each Guarantor immediately upon demand by Administrative Agent or any Lender. 
  
 12. Expenses. Each Guarantor shall pay on demand all out-of-pocket
expenses (including reasonable attorneys’ fees and expenses and the allocated cost and disbursements of internal legal counsel) in any way relating to the enforcement or protection of the rights of Administrative Agent or any Lender under this
Guaranty, including any incurred in the preservation, protection or enforcement of any rights of Administrative Agent or any Lender in any case commenced by or against any Guarantor under the Bankruptcy Code (Title 11, United States Code) or any
similar or successor statute. The obligations of Guarantor under the preceding sentence shall survive termination of this Guaranty. 
  
 13. Amendments. No provision of this Guaranty may be waived, amended, supplemented or modified, except by a written instrument executed by
Administrative Agent for the benefit of the Lender and each Guarantor. 
  
 14. No Waiver; Enforceability. No failure by Administrative Agent or any Lender to exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a waiver thereof; nor shall any single or partial exercise
of any right, remedy or power hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law or in equity. The
unenforceability or invalidity of any provision of this Guaranty shall not affect the enforceability or validity of any other provision herein. 
  
 15. Assignment; Governing Laws; Jurisdiction. This Guaranty shall (a) bind each Guarantor and its successors and assigns, provided that each
Guarantor may not assign its rights or obligations under this Guaranty without the prior written consent of Administrative Agent and Lenders (and any attempted assignment without such consent shall be void), (b) inure to the benefit of
Administrative Agent and Lenders and its successors and assigns and Administrative Agent or any Lender may, without notice to any Guarantor and without affecting any Guarantor’s obligations hereunder, assign or sell participations in the
Guaranteed Obligations and this Guaranty, in whole or in part, and (c) be governed by the internal laws of the State of Texas without application of its conflicts of laws principles. Each Guarantor hereby irrevocably (i) submits to the non-exclusive
jurisdiction of any United States Federal or State court sitting in Dallas, Texas in any action or proceeding arising out of or relating to this Guaranty, and (ii) waives to the fullest extent permitted by law any defense asserting an inconvenient
forum in connection therewith. Service of process by Administrative Agent or any Lender in connection with such action or proceeding shall be binding on each Guarantor if sent to such Guarantor by registered or certified mail at its address
specified in Schedule 10.02 of the Credit Agreement. Each Guarantor agrees that Administrative Agent or any Lender may disclose to any prospective purchaser and any purchaser of all or part of the Guaranteed Obligations any and all
information in the possession of Administrative Agent or any Lender concerning each Guarantor, this Guaranty and any security for this Guaranty. 
  
 16. Condition of Borrower. Each Guarantor acknowledges and agrees that it has the sole responsibility for, and has adequate means of, obtaining
from Borrower such information concerning 

  

 E -2 - 
 Form of Subsidiary Guaranty 

 
the financial condition, business and operations of Borrower as such Guarantor requires, and that neither Administrative Agent nor any Lender has any duty,
and each Guarantor is not relying on Administrative Agent or any Lender at any time, to disclose to each Guarantor any information relating to the business, operations or financial condition of Borrower. 
  
 17. Setoff. If and to the extent any payment is not made when due
hereunder, Administrative Agent and each Lender may setoff and charge from time to time any amount so due against any or all of Guarantors’ accounts or deposits with Administrative Agent or such Lender. 
  
 18. Other Guarantees. Unless otherwise agreed by Administrative Agent
and Lenders and Guarantors in writing, this Guaranty is not intended to supersede or otherwise affect any other guaranty now or hereafter given by Guarantors for the benefit of the Lender or any term or provision thereof. 
  
 19. Representations and Warranties. Each Guarantor represents and
warrants that (a) it is duly organized and in good standing under the laws of the jurisdiction of its organization and has full capacity and right to make and perform this Guaranty, and all necessary authority has been obtained; (b) this Guaranty
constitutes its legal, valid and binding obligation enforceable in accordance with its terms; (c) the making and performance of this Guaranty does not and will not violate the provisions of any applicable law, regulation or order, and does not and
will not result in the breach of, or constitute a default or require any consent under, any material agreement, instrument, or document to which it is a party or by which it or any of its property may be bound or affected; (d) all consents,
approvals, licenses and authorizations of, and filings and registrations with, any governmental authority required under applicable law and regulations for the making and performance of this Guaranty have been obtained or made and are in full force
and effect; (e) by virtue of its relationship with Borrower, the execution, delivery and performance of this Guaranty is for the direct benefit of each Guarantor and each has received adequate consideration for this Guaranty; and (f) the financial
information that has been delivered to Lenders by or on behalf of each Guarantor is complete and correct in all material respects and accurately presents the financial condition and the operational results of such Guarantor and since the date of the
most recent financial statements delivered to Lenders, there has been no material adverse change in the financial condition or operational results of such Guarantor. 
  
 20. Loan Documents. By execution hereof, each Guarantor covenants and agrees that certain representations and
warranties set forth in the Loan Documents are applicable to Guarantors, and each Guarantor reaffirms that each such representation and warranty is true and correct in every material respect. Each Guarantor acknowledges and agrees that this Guaranty
is subject to the offset provisions of the Loan Documents in favor of Administrative Agent. If the Credit Agreement shall cease to remain in effect for any reason whatsoever during any period and any part of the Guaranteed Obligations remain unpaid,
then the terms, covenants, and agreements incorporated herein by reference shall nevertheless continue in full force and effect as obligations of each Guarantor under this Guaranty. Each Guarantor shall take, or refrain from taking, as the case may
be, each action that is necessary to be taken or not taken, as the case may be, so that no Event of Default is caused by the failure to take or refrain from taking such action, as the case may be. 
  
 21. Authority of Administrative Agent. Each Guarantor acknowledges
that the rights and responsibilities of Administrative Agent under this Guaranty with respect to any action taken by Administrative Agent or the exercise or non-exercise by Administrative Agent of any option, right, request, judgment or other right
or remedy provided for herein or resulting or arising out of this Guaranty shall, as between Administrative Agent and Lenders, be governed by the Credit Agreement and by such other agreements with respect thereto as may exist from time to time among
them, but, as 

  

 E -2 - 
 Form of Subsidiary Guaranty 

 
between Administrative Agent and such Guarantor, Administrative Agent shall be conclusively presumed to be acting as agent for Lenders with full and valid
authority so to act or refrain from acting, and no Guarantor shall be under any obligation, or entitlement, to make any inquiry respecting such authority. 
  
 22. Additional Guarantors. From time to time subsequent to the time hereof, additional Subsidiaries of Parent may become parties hereto as
additional guarantors (each an “Additional Guarantor”) by executing a counterpart of this Guaranty in the form of Exhibit A attached hereto. Upon delivery of any such counterpart to Administrative Agent, notice of which is
hereby waived by Guarantors, each such Additional Guarantor shall be a Guarantor and shall be a party hereto as if such Additional Guarantor were an original signatory hereof. Each Guarantor expressly agrees that its obligations arising hereunder
shall not be affected or diminished by the addition or release of any other Guarantor hereunder, or by any election by Administrative Agent not to cause any Subsidiaries of Borrower to become an Additional Guarantor hereunder. This Guaranty shall be
fully effective as to any Guarantor that is or becomes a party hereto regardless of whether any such person becomes or fails to become or ceases to be a Guarantor hereunder. 
  
 23. WAIVER OF JURY TRIAL; AND FINAL AGREEMENT. TO THE EXTENT ALLOWED BY APPLICABLE LAW, EACH GUARANTOR, THE
ADMINISTRATIVE AGENT AND EACH LENDER EACH WAIVE TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING ON OR ARISING OUT OF THIS GUARANTY. THIS GUARANTY REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
  
 24. Counterparts. This Guaranty may be executed by one or more of the parties hereto on any number of separate counterparts and all of the said
counterparts taken together shall be deemed to constitute one and the same instrument. 
  
 REMAINDER OF PAGE INTENTIONALLY BLANK. 
 SIGNATURE PAGES FOLLOW. 
  

 E -2 - 
 Form of Subsidiary Guaranty 

 IN WITNESS WHEREOF, each of the undersigned has caused this Guaranty to be duly executed and delivered as
of the date first above written. 
  

			
	GUARANTORS:
	
	CAPITAL LODGING TALLAHASSEE, LLC
	CAPITAL LODGING PALM SPRINGS, LLC
	CAPITAL LODGING BRANSON, LLC
	CAPITAL LODGING STOCKTON, LLC
	CAPITAL LODGING CHARLOTTE UNIVERSITY, LLC
	CAPITAL LODGING HARRISONBURG, LLC
	CAPITAL LODGING PROPERTY HOLDINGS II, LLC
		
	By:	 	 
	 	 	 John D. Bailey in his capacity as “Manager” of each
 Guarantor listed above

	
	CAPITAL LODGING TRS OPERATIONS II, INC.
	CAPITAL LODGING TRS HOLDINGS, INC.
		
	By:	 	 
	 	 	 John D. Bailey in his capacity as “Secretary and Treasurer”
 of each Guarantor listed above

  

					
	CAPITAL LODGING PROPERTIES II, L.P.
		
	 By:
	 	 CAPITAL LODGING PROPERTY HOLDINGS II, LLC,
 its General Partner

			
	 	 	 By:
	 	 
	 	 	 	 	 John D. Bailey

	 	 	 	 	 Manager

  
 Signature
Page to Capital Lodging Subsidiary Guaranty Agreement 
  

 SCHEDULE 1 
  

	1.	Capital Lodging Tallahassee, LLC 

  

	2.	Capital Lodging Palm Springs, LLC 

  

	3.	Capital Lodging Branson, LLC 

  

	4.	Capital Lodging Stockton, LLC 

  

	5.	Capital Lodging Charlotte University, LLC 

  

	6.	Capital Lodging Harrisonburg, LLC 

  

	7.	Capital Lodging Properties II, L.P. 

  

	8.	Capital Lodging TRS Operations II, Inc. 

  

	9.	Capital Lodging TRS Holdings, Inc. 

  

	10.	Capital Lodging Property Holdings II, LLC 

  

 Schedule 1 

 EXHIBIT A 
  

Subsidiary Guaranty 
  
 COUNTERPART TO CONTINUING GUARANTY 
  
 In witness whereof, the undersigned Additional Guarantor has caused this Guaranty to be executed by delivered by its officer thereunto duly authorized as
of                                  ,
20        . 
  

			
	[NAME OF ADDITIONAL GUARANTOR]

					
			
	By:	 	 	 	 
			
	 	 	Name:	 	 
			
	 	 	Title:	 	 

  
 Address for Notice: 

 
 _________________________ 
  
 _________________________ 
  
 _________________________ 
  
 _________________________ 
  

 E -2 - 
 Form of Subsidiary Guaranty 

 EXHIBIT F 
  
 SURVEY REQUIREMENTS 
 (with respect to each Borrowing Base Property) 
  
 1. Field Note Description. The Survey shall contain a certified metes and bounds description complying with the following: (a) the beginning point shall be established by a monument located at the beginning
point, or by reference to a nearby monument; (b) the sides of the Borrowing Base Property shall be described by giving the distances and bearings of each; (c) the distances, bearings, and angles shall be taken from an instrument survey by a
registered professional engineer or registered professional Borrowing Base Property surveyor; (d) curved sides shall be described by data including: length of arc, central angle, radius of circle for the arc and chord distance, and bearing; (e) the
description shall be a single perimeter description of the entire Borrowing Base Property, if and as instructed, there shall also be a separate metes and bounds description of one or more constituent tracts out of the Borrowing Base Property; (f)
the description shall include a reference to all streets, alleys, and other rights-of-way that abut the Borrowing Base Property, and the width of all rights-of-way mentioned shall be given the first time these rights-of-way are referred to; (g) for
each boundary line abutting a street, road, alley or other means of access, the description must, in calling the boundary line, state that the boundary line and the right-of-way line are the same; (h) if the Borrowing Base Property has been recorded
on a map or plat as part of an abstract or subdivision, reference to such recording data shall be made; and (i) the total acreage and square footage of the Borrowing Base Property shall be certified. 
  
 2. Lot and Block Description. If the Borrowing Base Property consists
of one or more complete lots or blocks included within a properly established recorded subdivision or addition, then a lot and block description will be an acceptable substitute for a metes and bounds description, provided that the lot and block
description must completely and properly identify the name or designation of the recorded subdivision or addition and give the recording information therefor. 
  

3. Map or Plat. The Survey shall also contain a certified map or plat clearly showing the following: (a) the Borrowing Base Property; (b) the
relation of the point of beginning of the Borrowing Base Property to the monument from which it is fixed; (c) all easements, streets, roads, alleys and rights-of-way on or abutting the Borrowing Base Property, showing recording information therefor
by volume and page; (d) the established building setback lines, if any, including those by restrictive covenant, recorded plat and zoning ordinance (identifying the source in each case, by volume and page reference if applicable); (e) all easements
appurtenant to said Borrowing Base Property, with recording information by volume and page; (f) the boundary lines of the street or streets abutting the Borrowing Base Property and the width of said streets and the width of the rights-of-way
therefor; (g) all structures and improvements on the Borrowing Base Property (with designation and dimensions thereof and of each party wall, if any) with horizontal lengths of all sides and the relation thereof by distances to (1) all boundary
lines of the Borrowing Base Property, (2) easements, (3) established building lines, and (4) street lines; (h) all street addresses of improvements on the Borrowing Base Property; (i) all curb cuts, driveways, fences, sidewalks, stoops and
landscaping; (j) the number of stories of all multi-story structures; (k) all encroachments and protrusions, if any, from or upon the Borrowing Base Property or any improvements thereon or upon any easement, building setback line or other restricted
area, with exact measurements; (l) all parking and paved areas, including the number of vehicles that may be parked; (m) all distances, angles and other calls contained in the legal description; (n) the location, type and size of all monuments, and
as to each monument, indication whether it was found or placed by the surveyor; (o) the boundaries of any flood hazard area or flood plain area in which any part of the Borrowing Base Property lies, with the map number, date and source (Governmental
Authority) of each flood map shown; (p) all surface water bodies or courses; (q) the date of any revisions subsequent to the initial survey prepared pursuant to these requirements; (r) a legend explaining the meaning of all symbols used on the plat;
and (s) the scale of all distances and dimensions on the plat. 
  

 F- 1 
 Survey Requirements 

 4. Certification. The certification for the property description and the map or plat shall be
addressed to Administrative Agent for the benefit of Lenders, the Title Insurer and Borrower, signed by the surveyor (a registered professional Borrowing Base Property surveyor or registered professional engineer), bearing current date, registration
number, and seal, and shall be in the following form or its substantial equivalent: 
  
 This is to certify to Administrative Agent, Lenders, Title Insurer and Borrower that this map or plat and the survey on which it is based were made in accordance with “Minimum Standard Detail Requirements for
ALTA/ACSM Borrowing Base Property Title Surveys” jointly established and adopted by ALTA, ACSM and NSPS in 1999, and pursuant to the Accuracy Standards as adopted by ALTA, NSPS and ACSM and in effect on the date of this certification. The
undersigned hereby certifies that the Positional Uncertainties resulting from the survey measurements made on the survey do not exceed the allowable Positional Tolerance. The undersigned further certifies to Administrative Agent, Lender, the Title
Insurer and Borrower that (a) this survey is true and correct and was made on the ground under my supervision as per the field notes shown hereon and correctly shows the boundary lines and dimensions and area of the Borrowing Base Property indicated
hereon and each individual parcel thereof indicated hereon; (b) all monuments shown hereon actually exist, and the location, size and type of such monuments are correctly shown; (c) the subject Borrowing Base Property described in this survey is the
same Borrowing Base Property as described in the title commitment described below; (d) this survey and the information, courses and distances shown on the survey are correct; (e) this survey correctly shows the size, location and type of all
buildings, structures, other improvements and visible items on the subject Borrowing Base Property and that all buildings and improvements are within the boundary lines and applicable set back lines of the subject Borrowing Base Property; (f) this
survey correctly shows the location and dimensions of all alleys, streets, roads, rights-of-way, easements, building setback lines and other matters of record of which the undersigned has been advised affecting the subject Borrowing Base Property
according to the legal description in such easements and other matters (with instrument, book, and page number indicated); (g) there are no violations of zoning ordinances, restrictions or other rules and regulations with reference to the location
of the buildings and improvements: (h) except as shown, there are no visible (1) improvements, easements, rights-of-way, party walls, drainage ditches, streams, uses, discrepancies or conflicts, (2) party walls or encroachments onto adjoining
premises, streets, or alleys by any of said buildings, structures, or other improvements, (3) encroachments onto the subject Borrowing Base Property by buildings, structures, or other improvements on adjoining premises, or (4) encroachments on any
easement, building setback line or other restricted area by any buildings, structures or other improvements on the subject Borrowing Base Property; (i) the distance from the nearest intersecting street or road is as shown hereon; (j) the subject
Borrowing Base Property abuts a dedicated public street or road as shown hereon; (k) all utility services required for the operation of the subject Borrowing Base Property either enter the subject Borrowing Base Property through adjoining public
streets, or this survey shows the point of entry and location of any utilities that pass through or are located on the adjoining premises; (l) any discharge into streams, rivers or other conveyance system is shown on this survey; (m) if the subject
Borrowing Base Property consists of two or more parcels having common boundaries, those parcels are contiguous along the common boundaries; (n) except as shown, no part of the Borrowing Base Property is located in a 100-year Flood Plain or in an
identified “flood prone area,” as defined pursuant to the Flood Disaster Protection Act of 1973, as amended, as reflected by Flood Insurance Rate Map Panel #
                     dated
                    , which such map panel covers the area in which the Borrowing Base Property is situated and this survey correctly
indicates the zone designation of any area as being in the 100-year Flood Plain or “flood prone area”; (o) no portion of the subject Borrowing Base Property lies within a delineated wetlands area under federal, state or local Law or
policy; (p) except as shown on this survey, the subject Borrowing Base Property does not serve any adjoining premises for drainage, utilities, or ingress or egress; (q) the record description of the subject Borrowing Base Property forms a
mathematically closed figure; and (r) the subject Borrowing Base Property has a tax map designation separate and distinct from that of any other premises and the subject Borrowing Base Property is a separate, legally subdivided parcel. The
undersigned has received and examined a copy of the Title Insurance Commitment No.                      issued by the Title Insurer for the
Borrowing Base Property as well as a copy of each instrument listed therein, and the location of any matter shown thereon, to the extent it can be located, has been shown on this survey. 
  

 F- 2 
 Survey Requirements 

 EXHIBIT G 
  
 BORROWING BASE REPORT 
  
 REPORTING DATE: 
  

	To:	Bank of America, N.A., as Administrative Agent 

  
 Ladies and Gentlemen: 
  
 Reference is made to that certain Credit Agreement, dated as of August     , 2004 (as amended, restated, extended, supplemented
or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Capital Lodging Operating Partnership, L.P., a Delaware limited partnership
(“Borrower”), Capital Lodging, a Maryland real estate investment trust, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent and L/C Issuer. 
  
 The undersigned hereby certifies and warrants to Administrative Agent and
Lenders on behalf of the Borrower as follows: 
  

	I.	I am a duly qualified and acting Responsible Officer of Borrower, and I am familiar with the financial statements and financial affairs of the Loan Parties. I am authorized to
execute this Borrowing Base Report on behalf of the Loan Parties. 

  

	II.	Attached hereto as Schedule 1 are true and correct computations of the Borrowing Base under the Credit Agreement as of the date set forth below. 

  
 Borrower further represents and warrants to Administrative Agent and Lenders
that the representations and warranties contained in Article VI of the Credit Agreement are true and correct in all material respects on and as of the date of this Borrowing Base Report as if made on and as of the date hereof (except to the
extent that such representations and warranties expressly refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date and except to the extent that (a) Administrative Agent and Lenders have
been notified in writing by Borrower that any representation or warranty is not correct and the Required Lenders have explicitly waived in writing compliance with such representation or warranty or (b) any representation or warranty has been
qualified by the updated information reflected in, and as permitted under, the Compliance Certificate submitted by Borrower to Administrative Agent periodically), and that no Event of Default or Default has occurred and is continuing, except as
disclosed in an attachment to this Borrowing Base Report. 
  
 IN
WITNESS WHEREOF, Borrower has caused this Borrowing Base Report to be executed and delivered on this      day of
                    , 200  . 
  

									
	CAPITAL LODGING OPERATING PARTNERSHIP, L.P.
		
	By:	 	 CAPITAL LODGING GENERAL PARTNER, LLC,
 its General Partner

			
	 	 	 By:
	 	 CAPITAL LODGING, its Member

				
	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 

  

 G - 1 
 Borrowing Base Report 

 SCHEDULE 1 to Borrowing Base Report 
  
 (See attached computations of the Borrowing Base) 
  
 [Form to be Agreed to by Administrative Agent and Borrower] 
  

 G - 1 
 Borrowing Base ReportSenior Loan Agreement

 Exhibit 10.27 

  
 LOAN AGREEMENT 
  
 Dated as of
                    , 2004 
  
 Between 
  
 CAPITAL LODGING PROPERTIES I, L.P., as Maker, 
  
 CAPITAL LODGING TRS OPERATIONS I, INC., as Maker, 
  
 CAPITAL LODGING MARYLAND PROPERTIES, LLC, as Maker and 
  
 CAPITAL LODGING MARYLAND PROPERTY HOLDINGS, LLC, as Maryland 
 Guarantor 
  
 collectively, as
Borrower 
  
 and 
  
 BANK OF AMERICA, N.A., 
 as Lender 
  

  

 TABLE OF CONTENTS 
  
  

			
	 	  	Page

		
	 ARTICLE 1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	  	1
		
	 Section 1.1. DEFINITIONS
	  	1
	 Section 1.2. PRINCIPLES OF CONSTRUCTION
	  	21
		
	 ARTICLE 2 GENERAL TERMS
	  	22
		
	 Section 2.1. LOAN COMMITMENT; DISBURSEMENT TO
BORROWER
	  	22
	 Section 2.2. INTEREST RATE
	  	22
	 Section 2.3. LOAN PAYMENTS
	  	23
	 Section 2.4. PREPAYMENTS
	  	30
	 Section 2.5. RELEASE OF PROPERTY
	  	31
		
	 ARTICLE 3 CONDITIONS PRECEDENT
	  	32
		
	 Section 3.1. REPRESENTATIONS AND WARRANTIES; COMPLIANCE WITH
CONDITIONS
	  	32
	 Section 3.2. DELIVERY OF LOAN DOCUMENTS; TITLE
INSURANCE; REPORTS; LEASES
	  	33
	 Section 3.3. INTENTIONALLY DELETED
	  	34
	 Section 3.4. ORGANIZATIONAL DOCUMENTS
	  	34
	 Section 3.5. OPINIONS OF BORROWER’S COUNSEL
	  	34
	 Section 3.6. ANNUAL BUDGET
	  	34
	 Section 3.7. TAXES AND OTHER CHARGES
	  	34
	 Section 3.8. COMPLETION OF PROCEEDINGS
	  	35
	 Section 3.9. PAYMENTS
	  	35
	 Section 3.10. TRANSACTION COSTS
	  	35
	 Section 3.11. NO MATERIAL ADVERSE CHANGE
	  	35
	 Section 3.12. LEASES AND RENT ROLL
	  	35
	 Section 3.13. TENANT ESTOPPELS
	  	36
	 Section 3.14. REA ESTOPPELS
	  	36
	 Section 3.15. SUBORDINATION AND ATTORNMENT
	  	36
	 Section 3.16. TAX LOT
	  	36
	 Section 3.17. PHYSICAL CONDITIONS REPORT
	  	36
	 Section 3.18. MANAGEMENT AGREEMENT/OPERATING LEASE
	  	36
	 Section 3.19. APPRAISAL
	  	36
	 Section 3.20. FINANCIAL STATEMENTS
	  	36
	 Section 3.21. NET OPERATING INCOME
	  	37
	 Section 3.22. FURTHER DOCUMENTS
	  	37
		
	 ARTICLE 4 REPRESENTATIONS AND WARRANTIES
	  	37
		
	 Section 4.1. ORGANIZATION
	  	37
	 Section 4.2. STATUS OF MAKER AND MARYLAND
GUARANTOR
	  	38
	 Section 4.3. VALIDITY OF DOCUMENTS
	  	38
	 Section 4.4. NO CONFLICTS
	  	38
	 Section 4.5. LITIGATION
	  	39
	 Section 4.6. AGREEMENTS
	  	39
	 Section 4.7. SOLVENCY
	  	39
	 Section 4.8. FULL AND ACCURATE DISCLOSURE
	  	40
	 Section 4.9. NO PLAN ASSETS
	  	40
	 Section 4.10. NOT A FOREIGN PERSON
	  	40
	 Section 4.11. ENFORCEABILITY
	  	40
	 Section 4.12. BUSINESS PURPOSES
	  	40
	 Section 4.13. COMPLIANCE
	  	41
	 Section 4.14. FINANCIAL INFORMATION
	  	41

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

			
	 	  	Page

	 Section 4.15. CONDEMNATION
	  	41
	 Section 4.16. UTILITIES AND PUBLIC ACCESS; PARKING
	  	41
	 Section 4.17. SEPARATE LOTS
	  	42
	 Section 4.18. ASSESSMENTS
	  	42
	 Section 4.19. INSURANCE
	  	42
	 Section 4.20. USE OF PROPERTY
	  	42
	 Section 4.21. CERTIFICATE OF OCCUPANCY; LICENSES
	  	42
	 Section 4.22. FLOOD ZONE
	  	42
	 Section 4.23. PHYSICAL CONDITION
	  	43
	 Section 4.24. BOUNDARIES
	  	43
	 Section 4.25. LEASES AND RENT ROLL
	  	43
	 Section 4.26. FILING AND RECORDING TAXES
	  	44
	 Section 4.27. MANAGEMENT AGREEMENT/OPERATING LEASE
	  	44
	 Section 4.28. ILLEGAL ACTIVITY
	  	44
	 Section 4.29. CONSTRUCTION EXPENSES
	  	44
	 Section 4.30. PERSONAL PROPERTY
	  	45
	 Section 4.31. TAXES
	  	45
	 Section 4.32. PERMITTED ENCUMBRANCES
	  	45
	 Section 4.33. FEDERAL RESERVE REGULATIONS
	  	45
	 Section 4.34. INVESTMENT COMPANY ACT
	  	45
	 Section 4.35. RECIPROCAL EASEMENT AGREEMENTS
	  	45
	 Section 4.36. NO CHANGE IN FACTS OR CIRCUMSTANCES;
DISCLOSURE
	  	46
	 Section 4.37. INTELLECTUAL PROPERTY
	  	46
	 Section 4.38. SURVEY
	  	47
	 Section 4.39. EMBARGOED PERSON
	  	47
	 Section 4.40. PATRIOT ACT
	  	47
	 Section 4.41. FRANCHISE AGREEMENT
	  	48
	 Section 4.42. GROUND LEASE REPRESENTATIONS
	  	48
	 Section 4.43. SURVIVAL
	  	49
		
	 ARTICLE 5 BORROWER COVENANTS
	  	50
		
	 Section 5.1. EXISTENCE; COMPLIANCE WITH LEGAL
REQUIREMENTS
	  	50
	 Section 5.2. MAINTENANCE AND USE OF PROPERTY
	  	50
	 Section 5.3. WASTE
	  	50
	 Section 5.4. TAXES AND OTHER CHARGES
	  	51
	 Section 5.5. LITIGATION
	  	51
	 Section 5.6. ACCESS TO PROPERTIES
	  	51
	 Section 5.7. NOTICE OF DEFAULT
	  	52
	 Section 5.8. COOPERATE IN LEGAL PROCEEDINGS
	  	52
	 Section 5.9. PERFORMANCE BY BORROWER
	  	52
	 Section 5.10. AWARDS; INSURANCE PROCEEDS
	  	52
	 Section 5.11. FINANCIAL REPORTING
	  	52
	 Section 5.12. ESTOPPEL STATEMENT
	  	54
	 Section 5.13. LEASING MATTERS
	  	55
	 Section 5.14. PROPERTY MANAGEMENT
	  	56
	 Section 5.15. LIENS
	  	57
	 Section 5.16. DEBT CANCELLATION
	  	57
	 Section 5.17. ZONING
	  	57
	 Section 5.18. ERISA
	  	58
	 Section 5.19. NO JOINT ASSESSMENT
	  	58
	 Section 5.20. RECIPROCAL EASEMENT AGREEMENTS
	  	58
	 Section 5.21. ALTERATIONS
	  	58
	 Section 5.22. INTENTIONALLY DELETED
	  	61
	 Section 5.23. INTEREST RATE CAP AGREEMENT
	  	61

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

			
	 	  	Page

	 Section 5.24. FRANCHISE AGREEMENT
	  	62
	 Section 5.25. THE GROUND LEASE
	  	63
	 Section 5.26. EMBARGOED PERSON
	  	65
	 Section 5.27. OFAC
	  	66
	 Section 5.28. OPERATING LEASE
	  	66
		
	 ARTICLE 6 ENTITY COVENANTS
	  	67
		
	 Section 6.1. SINGLE PURPOSE ENTITY/SEPARATENESS
	  	67
	 Section 6.2. CHANGE OF NAME, IDENTITY OR
STRUCTURE
	  	70
	 Section 6.3. BUSINESS AND OPERATIONS
	  	71
	 Section 6.4. INDEPENDENT DIRECTOR
	  	71
		
	 ARTICLE 7 NO SALE OR ENCUMBRANCE
	  	72
		
	 Section 7.1. TRANSFER DEFINITIONS
	  	72
	 Section 7.2. NO SALE/ENCUMBRANCE
	  	72
	 Section 7.3. PERMITTED TRANSFERS
	  	73
	 Section 7.4. LENDER’S RIGHTS
	  	73
	 Section 7.5. ASSUMPTION
	  	74
		
	 ARTICLE 8 INSURANCE; CASUALTY; CONDEMNATION; RESTORATION
	  	76
		
	 Section 8.1. INSURANCE
	  	76
	 Section 8.2. CASUALTY
	  	80
	 Section 8.3. CONDEMNATION
	  	80
	 Section 8.4. RESTORATION
	  	81
		
	 ARTICLE 9 RESERVE FUNDS
	  	85
		
	 Section 9.1. REQUIRED REPAIRS
	  	85
	 Section 9.2. REPLACEMENTS
	  	85
	 Section 9.3. INTENTIONALLY DELETED
	  	87
	 Section 9.4. REQUIRED WORK
	  	87
	 Section 9.5. RELEASE OF RESERVE FUNDS
	  	89
	 Section 9.6. TAX AND INSURANCE RESERVE FUNDS
	  	92
	 Section 9.7. INTENTIONALLY DELETED
	  	93
	 Section 9.8. INTENTIONALLY DELETED
	  	93
	 Section 9.9. INTENTIONALLY DELETED
	  	93
	 Section 9.10. OPERATING EXPENSES; EXTRAORDINARY EXPENSES
	  	93
	 Section 9.11. RESERVE FUNDS GENERALLY
	  	94
		
	 ARTICLE 10 CASH MANAGEMENT
	  	96
		
	 Section 10.1. LOCKBOX ACCOUNT AND CASH MANAGEMENT
ACCOUNT
	  	96
	 Section 10.2. DEPOSITS AND WITHDRAWALS
	  	98
	 Section 10.3. SECURITY INTEREST
	  	101
	 Section 10.4. LENDER RELIANCE
	  	102
		
	 ARTICLE 11 EVENTS OF DEFAULT; REMEDIES
	  	102
		
	 Section 11.1. EVENT OF DEFAULT
	  	102
	 Section 11.2. REMEDIES
	  	106
		
	 ARTICLE 12 ENVIRONMENTAL PROVISIONS
	  	106
		
	 Section 12.1. ENVIRONMENTAL REPRESENTATIONS AND WARRANTIES
	  	106
	 Section 12.2. ENVIRONMENTAL COVENANTS
	  	107
	 Section 12.3. LENDER’S RIGHTS
	  	108
	 Section 12.4. OPERATIONS AND MAINTENANCE PROGRAMS
	  	108
	 Section 12.5. ENVIRONMENTAL DEFINITIONS
	  	108

  

 -iii- 

 TABLE OF CONTENTS 
 (continued) 
  

			
	 	  	Page

	 Section 12.6. INDEMNIFICATION
	  	109
		
	 ARTICLE 13 SECONDARY MARKET
	  	110
		
	 Section 13.1. TRANSFER OF LOAN
	  	110
	 Section 13.2. DELEGATION OF SERVICING
	  	110
	 Section 13.3. DISSEMINATION OF INFORMATION
	  	111
	 Section 13.4. COOPERATION
	  	111
	 Section 13.5. SECURITIZATION INDEMNIFICATION
	  	113
	 Section 13.6. REALLOCATION OF LOAN AMOUNTS
	  	116
		
	 ARTICLE 14 INDEMNIFICATIONS
	  	117
		
	 Section 14.1. GENERAL INDEMNIFICATION
	  	117
	 Section 14.2. MORTGAGE AND INTANGIBLE TAX
INDEMNIFICATION
	  	117
	 Section 14.3. ERISA INDEMNIFICATION
	  	117
	 Section 14.4. SURVIVAL
	  	118
		
	 ARTICLE 15 EXCULPATION
	  	118
		
	 Section 15.1. EXCULPATION
	  	118
		
	 ARTICLE 16 NOTICES
	  	120
		
	 Section 16.1. NOTICES
	  	120
		
	 ARTICLE 17 FURTHER ASSURANCES
	  	122
		
	 Section 17.1. REPLACEMENT DOCUMENTS
	  	122
	 Section 17.2. RECORDING OF MORTGAGE, ETC.
	  	122
	 Section 17.3. FURTHER ACTS, ETC.
	  	122
	 Section 17.4. CHANGES IN TAX, DEBT, CREDIT AND
DOCUMENTARY STAMP LAWS
	  	123
	 Section 17.5. EXPENSES
	  	123
		
	 ARTICLE 18 WAIVERS
	  	124
		
	 Section 18.1. REMEDIES CUMULATIVE; WAIVERS
	  	124
	 Section 18.2. MODIFICATION, WAIVER IN WRITING
	  	124
	 Section 18.3. DELAY NOT A WAIVER
	  	125
	 Section 18.4. TRIAL BY JURY
	  	125
	 Section 18.5. WAIVER OF NOTICE
	  	125
	 Section 18.6. REMEDIES OF BORROWER
	  	126
	 Section 18.7. CROSS-DEFAULT; CROSS-COLLATERALIZATION; WAIVER
OF MARSHALLING OF ASSETS
	  	126
	 Section 18.8. CONTRIBUTIONS AND WAIVERS
	  	127
	 Section 18.9. WAIVER OF STATUTE OF LIMITATIONS
	  	130
	 Section 18.10. WAIVER OF COUNTERCLAIM
	  	130
	 Section 18.11. BORROWER/MAKER
	  	130
		
	 ARTICLE 19 GOVERNING LAW
	  	130
		
	 Section 19.1. CHOICE OF LAW
	  	130
	 Section 19.2. SEVERABILITY
	  	130
	 Section 19.3. PREFERENCES
	  	131
		
	 ARTICLE 20 MISCELLANEOUS
	  	131
		
	 Section 20.1. SURVIVAL
	  	131
	 Section 20.2. LENDER’S DISCRETION
	  	131
	 Section 20.3. HEADINGS
	  	131
	 Section 20.4. COST OF ENFORCEMENT
	  	131
	 Section 20.5. SCHEDULES INCORPORATED
	  	132
	 Section 20.6. OFFSETS, COUNTERCLAIMS AND DEFENSES
	  	132

  

 -iv- 

 TABLE OF CONTENTS 
 (continued) 
  

			
	 	  	Page

	 Section 20.7. NO JOINT VENTURE OR PARTNERSHIP; NO
THIRD PARTY BENEFICIARIES
	  	132
	 Section 20.8. PUBLICITY
	  	133
	 Section 20.9. CONFLICT; CONSTRUCTION OF DOCUMENTS;
RELIANCE
	  	133
	 Section 20.10. ENTIRE AGREEMENT
	  	134
	 Section 20.11. TAX DISCLOSURE
	  	134

  

 -v- 

 LOAN AGREEMENT 
  
 THIS LOAN AGREEMENT, dated as of
                , 2004 (as amended, restated, replaced, supplemented or otherwise modified from time to time, this “Agreement”), between BANK
OF AMERICA, N.A., a national banking association, having an address at Bank of America Corporate Center, 214 North Tryon Street, Charlotte, North Carolina 28255 (together with its successors and/or assigns, “Lender”), CAPITAL
LODGING PROPERTIES I, L.P., a Delaware limited partnership (“Capital Lodging LP”), CAPITAL LODGING TRS OPERATIONS I, INC., a Delaware corporation (“Operating Lessee”), CAPITAL LODGING MARYLAND PROPERTIES, LLC, a
Delaware limited liability company (“Maryland Maker”), each having an address at 2927 Maple Avenue, Suite 503, Dallas, Texas 75201 (Capital Lodging LP, Operating Lessee and Maryland Maker individually and collectively, as the context may
require, referred to herein as the “Maker”), and CAPITAL LODGING MARYLAND PROPERTY HOLDINGS, LLC, a Delaware limited liability company, having an address at 2927 Maple Avenue, Suite 503, Dallas, Texas 75201 (“Maryland
Guarantor”) (the Maryland Guarantor and the Maker shall individually and collectively, as the context may require, together with its successors and/or assigns, be referred to as “Borrower”). 
  
 RECITALS: 
  
 Maker desires to obtain the Loan (defined below) from Lender. 
  
 Lender is willing to make the Loan to Maker, subject to and in accordance with the terms of this Agreement and the other
Loan Documents (defined below). 
  
 In consideration of the making
of the Loan by Lender and the covenants, agreements, representations and warranties set forth in this Agreement, the parties hereto hereby covenant, agree, represent and warrant as follows: 
  
 ARTICLE 1 
 DEFINITIONS; PRINCIPLES OF CONSTRUCTION 
  
 Section 1.1. DEFINITIONS 
  
 For all purposes of this Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent: 
  
 “Acceptable Accountant” shall mean a “Big
Four” accounting firm or other independent certified public accountant reasonably acceptable to Lender. 
  
 “Acceptable Counterparty” shall mean any counterparty to the Rate Cap that has and shall maintain, until the expiration of the
applicable Rate Cap, a credit rating of not less than AA- from S&P and not less than Aa3 from Moody’s. Such credit ratings maybe obtained by a guaranty of the Counterparty’s obligations under the Rate Cap by a Person maintaining such
credit ratings pursuant to a guaranty acceptable to Lender and the Rating Agencies. 
  

 “Accounts Receivable” shall have the meaning set forth in Article 1
of the Mortgage with respect to each Individual Property. 
  
 “Acquired Property” shall have the meaning set forth in Section 5.11(c)(i)(A) hereof. 
  
 “Acquired Property Statements” shall have the meaning set forth in Section 5.11(c)(i)(A) hereof. 
  
 “Act” shall have the meaning set forth in Section
6.1. 
  
 “Additional Replacement” shall
have the meaning set forth in Section 9.5(g) hereof. 
  
 “Additional Required Repair” shall have the meaning set forth in Section 9.5(f) hereof. 
  
 “Affiliate” shall mean, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by or is
under common control with such Person or is a director or officer of such Person or of an Affiliate of such Person. 
  
 “Affiliated Loans” shall mean a loan made by Lender to a parent, subsidiary or such other entity affiliated with Borrower or
Borrower Principal. 
  
 “Affiliated
Manager” shall have the meaning set forth in Section 7.1 hereof. 
  
 “Allocated Loan Amount” shall, for each Individual Property, have the meaning set forth on Exhibit C hereto. 
  
 “ALTA” shall mean American Land Title Association, or any successor thereto. 
  
 “Alteration” shall have the meaning set forth in
Section 5.21 hereof. 
  
 “Alteration
Threshold” means (i) with respect to Alterations performed at any Individual Property, five percent (5%) of the Combined Allocated Loan Amount for the applicable Individual Property and (ii) with respect to all Alterations undertaken at
the same time at all Individual Properties, two and one-half percent (2.5%) of the Combined Allocated Loan Amount. 
  
 “Annex” shall have the meaning set forth in Section 4.40 hereof. 
  
 “Annual Adjustment Date” shall mean January 1 of each calendar year beginning January 1, 2005.

  
 “Annual Budget” shall mean the
operating budget, including all planned capital expenditures, for each Individual Property approved by Lender in accordance with Section 5.11(a)(iv) hereof for the applicable calendar year or other period. 
  
 “Annual Replacement Reserve Requirement” shall mean,
for any calendar year beginning with calendar year 2005, five percent (5%) of the Operating Income of the Properties then encumbered by a Mortgage for the immediately preceding calendar year, as determined by Lender in its reasonable discretion, as
the same may be adjusted pursuant to the terms of Section 

  

 - 2 - 

 
9.2. The Annual Replacement Reserve Requirement shall be $3,708,600.00 until the occurrence of the first Annual Adjustment Date. In the event that any
Individual Property is released from the Lien of the applicable Mortgage during the preceding calendar year in accordance with Section 2.5 hereof, Operating Income for such released Individual Property shall be excluded from the calculation of the
Annual Replacement Reserve Requirement. Except as otherwise provided in the immediately preceding sentence, in computing the Annual Replacement Reserve Requirement, in no event shall the Operating Income for the Properties then encumbered by a
Mortgage be less than the Operating Income for the Properties then encumbered by a Mortgage for the immediately preceding calendar year. 
  
 “Assignment of Management Agreement” shall mean with respect to each Individual Property that certain Assignment and Subordination
of Management Agreement dated the date hereof among Lender, Borrower and Manager, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Award” shall mean any compensation paid by any Governmental Authority in connection with a
Condemnation in respect of all or any part of the Property. 
  
 “Borrower Principal” shall mean Capital Lodging Operating Partnership, L.P., a Delaware limited partnership. 
  
 “Breakage Costs” shall have the meaning set forth in Section 2.3(f)(iv) herein. 
  
 “Business Day” shall mean any day other than (i) a
Saturday or a Sunday or (ii) a day on which federally insured depository institutions in the States of New York or North Carolina or the state in which the offices of the Servicer and the trustee in the Securitization are located are authorized or
obligated by law, governmental decree or executive order to be closed, except that when used with respect to the determination of LIBOR, “Business Day” shall be a day on which commercial banks are open for international business (including
dealings in U.S. Dollar deposits) in London, England. 
  
 “Capital Lodging” shall mean Capital Lodging, a Maryland real estate investment trust. 
  
 “Cash Management Account” shall mean have the meaning set forth in Section 10.1(a) hereof. 
  
 “Cash Management Period” shall mean the period
commencing on the occurrence of a Triggering Event and ending on the occurrence of a Cash Management Period Termination Event. 
  
 “Cash Management Period Termination Event” shall mean 
  
 (i) in the event the Triggering Event was caused by the circumstances described in subsection (i) in the
definition of Triggering Event, all Events of Default ceasing to exist; 
  
 (ii) in the event the Triggering Event was caused by the circumstances described in subsection (ii) in the definition of Triggering Event, the Net 

  

 - 3 - 

 
Operating Income for the Properties then encumbered by a Mortgage for the immediately preceding twelve (12) full calendar months being equal to or greater
than the product of (A) 0.75 and (B) the sum of the Closing NOI for each of the Properties then encumbered by a Mortgage; and 
  
 (iii) in the event the Triggering Event was caused by the circumstances described in subsection (iii) in the definition of Triggering
Event, Lender’s receiving written notice from Mezzanine Lender that all Mezzanine Defaults cease to exist. 
  
 In the event multiple Triggering Events have occurred, no Cash Management Period Termination Event shall be deemed effective unless a Cash Management
Period Termination Event has occurred for each such Triggering Event. Notwithstanding the foregoing, not more than three (3) Cash Management Period Termination Events shall occur during the term of the Loan. 
  
 “Casualty” shall have the meaning set forth in
Section 8.2. 
  
 “Closing Date” shall mean
the date of the funding of the Loan. 
  
 “Closing
NOI” shall mean the Net Operating Income with respect to each Individual Property as of the Closing Date as shown on Schedule VIII attached hereto. 
  

“Collateral Assignment of Interest Rate Cap” shall mean that certain Collateral Assignment of Interest Rate Cap Agreement,
dated as of the date hereof, executed by Borrower in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Combined Allocated Loan Amount” shall mean, with
respect to each Individual Property, the sum of the Allocated Loan Amount and the Mezzanine Loan Allocated Loan Amount. 
  
 “Consequential Loss” shall have the meaning set forth in Section 2.3(f)(ii). 
  
 “Control” shall have the meaning set forth in Section
7.1 hereof. 
  
 “Condemnation” shall mean
a temporary or permanent taking by any Governmental Authority as the result, in lieu or in anticipation, of the exercise of the right of condemnation or eminent domain, of all or any part of any Individual Property, or any interest therein or right
accruing thereto, including any right of access thereto or any change of grade affecting such Individual Property or any part thereof. 
  
 “Condemnation Proceeds” shall have the meaning set forth in Section 8.4(b). 
  
 “Credit Card Direction Letter” shall have the meaning
set forth in Section 1.1(e)(i) hereof. 
  

 - 4 - 

 “Creditors Rights Laws” shall mean with respect to any Person any existing or
future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization, conservatorship, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to its debts or
debtors. 
  
 “Debt” shall mean the
outstanding principal amount set forth in, and evidenced by, this Agreement and the Note together with all interest accrued and unpaid thereon and all other sums due to Lender in respect of the Loan under the Note, this Agreement, the Mortgages or
any other Loan Document. 
  
 “Debt
Service” shall mean, with respect to any particular period of time, scheduled interest payments under the Note. 
  
 “Debt Service Coverage Ratio” shall mean, as of any date of determination, for the applicable period of calculation, the ratio, as
reasonably determined by Lender, of (i) Net Operating Income to (ii) the aggregate amount of Debt Service and Mezzanine Debt Service which would be due for the same period assuming the then-outstanding principal amount of the Loan and Mezzanine Loan
is outstanding and calculated at a loan constant equal to eight and one-half percent (8.5%) or such other constant as may be required from time to time by the Rating Agencies. 
  
 “Default” shall mean the occurrence of any event hereunder or under any other Loan Document which,
but for the giving of notice or passage of time, or both, would be an Event of Default. 
  
 “Default Rate” shall mean, with respect to the Loan, a rate per annum equal to the lesser of (a) the maximum rate permitted by applicable law, or (b) four percent (4%) above the Note Rate.

  
 “Determination Date” shall mean (a)
with respect to any Interest Period prior to the Interest Period that commences in the month during which the Securitization Closing Date occurs, two (2) Business Days prior to the start of the applicable Interest Period; (b) with respect to the
Interest Period that commences in the month during which the Securitization Closing Date occurs, the date that is two (2) Business Days prior to the Securitization Closing Date and (c) with respect to each Interest Period thereafter, the date that
is two (2) Business Days prior to the beginning of such Interest Period. 
  
 “Disclosure Document” shall have the meaning set forth in Section 13.5 hereof. 
  
 “Eligible Account” shall mean a separate and identifiable account from all other funds held by the holding institution that is
either (a) an account or accounts maintained with a federal or state chartered depository institution or trust company which complies with the definition of Eligible Institution or (b) a segregated trust account or accounts maintained with a federal
or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository institution or trust company, is subject to regulations substantially similar to 12 C.F.R. §9.10(b),
having in either case a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal and state authority. 

  

 - 5 - 

 
An Eligible Account will not be evidenced by a certificate of deposit, passbook or other instrument. 
  
 “Eligible Institution” shall mean Bank of America,
N.A. or a depository institution or trust company insured by the Federal Deposit Insurance Corporation, the short term unsecured debt obligations or commercial paper of which are rated at least “A-1+” by S&P, “P-1” by
Moody’s and “F-1+” by Fitch in the case of accounts in which funds are held for thirty (30) days or less (or, in the case of accounts in which funds are held for more than thirty (30) days, the long term unsecured debt obligations of
which are rated at least “AA” by Fitch and S&P and “Aa2” by Moody’s). Notwithstanding the foregoing, PNC Bank, N.A. shall be deemed an Eligible Institution for so long as its short term unsecured debt obligation or
commercial paper are rated at least “A-1” by S&P, “P-1” by Moody’s and “F1” by Fitch. 
  
 “Embargoed Person” shall the meaning set forth in Section 4.39. 
  
 “Environmental Law” shall have the meaning set forth in Section 12.5 hereof. 
  
 “Environmental Liens” shall have the meaning set
forth in Section 12.5 hereof. 
  
 “Environmental
Report” shall have the meaning set forth in Section 12.5 hereof. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time and any successor statutes thereto and applicable regulations issued pursuant thereto in
temporary or final form. 
  
 “Event of
Default” shall have the meaning set forth in Section 11.1 hereof. 
  
 “Exchange Act” shall mean the Securities and Exchange Act of 1934, as amended. 
  
 “Exchange Act Filing” shall have the meaning set forth in Section 5.11(c) hereof. 
  
 “Extended Maturity Date” shall have the meaning set
forth in Section 2.3(b). 
  
 “Extension
Fee” shall mean one-eighth percent (1/8%) of the outstanding principal amount of the Note. 
  
 “Extension Option” shall have the meaning set forth in Section 2.3(b). 
  
 “Extraordinary Expense” shall mean an operating
expense or capital expenditure with respect to each Individual Property that (i) is not set forth on the Annual Budget and (ii) is not subject to payment by withdrawals from the Replacement Reserve Account. Borrower shall deliver promptly to Lender
a reasonably detailed explanation of such proposed Extraordinary Expense for the approval of Lender. 
  
 “Extraordinary Expense Reserve Account” shall have the meaning set forth in Section 9.8(b) hereof. 
  

 - 6 - 

 “Extraordinary Expense Reserve Funds” shall have the meaning set forth in Section
9.8(b) hereof. 
  
 “FF&E” shall mean,
with respect to each Property, furnishings, fixtures and equipment in the guest rooms, hallways, lobbies, restaurants, lounges, meeting and banquet rooms, parking facilities and other public areas. 
  
 “Fitch” shall mean Fitch, Inc. 
  
 “Foreign Taxes” shall have the meaning set forth in
Section 2.3(f)(ii). 
  
 “Franchise Agreement”
shall mean that certain franchise agreement more specifically identified on Schedule III attached hereto. 
  
 “Franchisor” shall mean the franchisor with respect to the Franchise Agreement, as same is identified on Schedule III attached
hereto. 
  
 “Franchisor Direction Letter”
shall have the meaning set forth in Section 10.2 hereof. 
  
 “GAAP” shall mean generally accepted accounting principles in the United States of America as of the date of the applicable financial report. 
  
 “Governmental Authority” shall mean any court, board, agency, department, commission, office or
other authority of any nature whatsoever for any governmental unit (federal, state, county, municipal, city, town, special district or otherwise) whether now or hereafter in existence. 
  
 “Ground Lease” shall mean, individually and collectively, as the context may require, each ground
lease described on Schedule IV attached hereto and made a part hereof as such Schedule may be amended from time to time upon the release of an Individual Property. 
  
 “Ground Rent” shall mean rent and all other amounts due under the Ground Lease. 

 
 “Hazardous Materials” shall have the meaning set
forth in Section 12.5 hereof. 
  
 “Improvements” shall have the meaning set forth in the granting clause of the related Mortgage with respect to each Individual Property. 
  
 “Indemnified Parties” shall mean (a) Lender, (b) any prior owner or holder of the Loan or
Participations in the Loan, (c) any servicer or prior servicer of the Loan, (d) any Investor or any prior Investor in any Securities, (e) any trustees, custodians or other fiduciaries who hold or who have held a full or partial interest in the Loan
for the benefit of any Investor or other third party, (f) any receiver or other fiduciary appointed in a foreclosure or other Creditors Rights Laws proceeding, (g) any officers, directors, shareholders, partners, members, employees, agents,
servants, representatives, contractors, subcontractors, affiliates or subsidiaries of any and all of the foregoing, and (h) the heirs, legal representatives, successors and assigns of any and all of the foregoing (including, without limitation, any
successors by merger, consolidation or acquisition of all or a substantial portion of the Indemnified Parties’ assets and business), in all 

  

 - 7 - 

 
cases whether during the term of the Loan or as part of or following a foreclosure of the Mortgages. 
  
 “Indemnity Deed of Trust” shall mean, with respect to
the Maryland Properties, that certain Indemnity Deed of Trust and Security Agreement executed and delivered by Maryland Guarantor as security for the Maryland Guaranty and encumbering the Maryland Properties, as the same may be amended, restated
replaced, supplemented or otherwise modified from time to time. 
  
 “Independent Director” shall have the meaning set forth in Section 6.4. 
  
 “Individual Property” shall mean each parcel of real property, the Improvements thereon and all Personal Property owned by
Borrower and encumbered by a Mortgage, together with all rights pertaining to such Property and Improvements, as more particularly described in each Mortgage and referred to therein as the “Property”. 
  
 “Insurance Premiums” shall have the meaning set forth
in Section 8.1(b) hereof. 
  
 “Insurance
Proceeds” shall have the meaning set forth in Section 8.4(b) hereof. 
  
 “Interest Period” shall mean (a) with respect to the initial period for the accrual of interest due under this Agreement, the period from and including the Closing Date through but excluding
the Selected Day first occurring after the Closing Date, and (b) with respect to the Payment Date occurring in                 , 2004 and each Payment Date
thereafter, the period from and including the Selected Day immediately preceding the applicable Payment Date through but excluding the Selected Day next occurring after the applicable Payment Date. Notwithstanding the foregoing clause (b), if the
Lender so elects at any time, the “Interest Period” shall be the calendar month preceding each Payment Date. 
  
 “Internal Revenue Code” shall mean the Internal Revenue Code of 1986, as amended, as it may be further amended from time to time,
and any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 
  
 “Investor” shall have the meaning set forth in Section 13.3 hereof. 
  
 “Issuer Group” shall have the meaning set forth in Section 13.5(b) hereof. 
  
 “Issuer Person” shall have the meaning set forth in
Section 13.5(b) hereof. 
  
 “Lease” shall
have the meaning set forth in the Mortgage with respect to each Individual Property. 
  
 “Legal Requirements” shall mean, with respect to each Individual Property, all statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental
Authorities affecting such Individual Property or any part thereof, or the construction, use, alteration or operation thereof, whether now or hereafter enacted and in force, and all permits, licenses, authorizations and regulations relating thereto,
and all covenants, agreements, 

  

 - 8 - 

 
restrictions and encumbrances contained in any instruments, either of record or known to Borrower, at any time in force affecting such Individual Property or
any part thereof, including, without limitation, any which may (a) require repairs, modifications or alterations in or to such Individual Property or any part thereof, or (b) in any way limit the use and enjoyment thereof. 
  
 “Letter of Credit” shall mean a transferable, clean,
irrevocable, unconditional, standby letter of credit in form, substance and amount reasonably satisfactory to Lender in its reasonable discretion, issued or confirmed by a commercial bank with a long term debt obligation rating of AA or better (or a
comparable long term debt obligation rating) (the “Minimum L/C Rating”) as assigned by the Rating Agencies and otherwise satisfactory to Lender in its reasonable discretion (the “Issuing Bank”). The Letter of Credit shall be
payable upon presentation of a sight draft only to the order of Lender at a New York City or Charlotte, North Carolina bank. The Letter of Credit shall have an initial expiration date of not less than one (1) year and shall be automatically renewed
for successive twelve (12) month periods for the term of the Loan (unless such Letter of Credit provides that the issuing bank may elect not to renew the Letter of Credit upon written notice to the beneficiary at least thirty (30) days prior to its
expiration date) and shall provide for multiple draws. The Letter of Credit shall be transferable by Lender and its successors and assigns at a New York City or Charlotte, North Carolina bank. 
  
 “LIBOR” shall mean, with respect to each Interest
Period, a rate of interest per annum obtained by dividing 
  
 (a)
the rate for deposits in U.S. Dollars, for a period equal to one month, which appears on the Telerate Page 3750 as of 11:00 a.m., London time, on the related Determination Date; provided, however, if Telerate is unavailable, the rate shall be as
specified on Reuters Screen LIBOR Page or, more than one rate is specified on Reuters Screen LIBOR Page, the LIBOR Rate shall be the arithmetic mean of all rates. Lender shall determine the LIBOR Rate for each Interest Period and the determination
of the LIBOR Rate by Lender shall be binding upon Borrower absent manifest error, by 
  
 (b) a percentage equal to 100% minus the applicable Reserve Percentage then in effect. 
  
 LIBOR may or may not be the lowest rate based upon the market for U.S. Dollar deposits in the London Interbank Eurodollar Market at which the Lender
prices loans on the date which LIBOR is determined by Lender as set forth above. 
  
 “LIBOR Loan” shall mean the Loan at such time as interest thereon accrues at the LIBOR Rate. 
  
 “LIBOR Margin” shall mean [three and one-half percent (3.50%)]. 
  
 “LIBOR Rate” shall mean the sum of (i) LIBOR plus
(ii) the LIBOR Margin. 
  
 “Lien” shall
mean with respect to each Individual Property, any mortgage, deed of trust, lien, pledge, hypothecation, assignment, security interest, or any other encumbrance, charge or transfer of, on or affecting Borrower, the related Individual Property, any
portion thereof or any interest therein, including, without limitation, any conditional sale or other title retention 

  

 - 9 - 

 
agreement, any financing lease having substantially the same economic effect as any of the foregoing, the filing of any financing statement, and
mechanic’s, materialmen’s and other similar liens and encumbrances. 
  
 “LLC Agreement” shall have the meaning set forth in Section 6.1. 
  
 “Loan” shall mean the loan made by Lender to Borrower pursuant to this Agreement. 
  
 “Loan Documents” shall mean, collectively, this
Agreement, the Note, the Mortgages, the Assignments of Management Agreement, the Collateral Assignment of Interest Rate Cap, the Operating Lease Subordination Agreement, the Maryland Guaranty, the Lockbox Agreement, and any and all other documents,
agreements and certificates executed and/or delivered in connection with the Loan, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Lockbox” shall mean the post office address established pursuant to the Lockbox Agreement and
maintained by Bank on behalf of Borrower and Lender pursuant to the terms thereof and to which Borrower shall direct all Rents and other income from the Property be sent pursuant to the Credit Card Direction Letters and the Franchisor Direction
Letters. 
  
 “Lockbox Account” shall have
the meaning set forth in Section 10.1(a) hereof. 
  
 “Lockbox Agreement” shall mean individually and collectively, as the context may require, (i) with respect to the Individual Properties located in Oak Ridge, Tennessee and Durham, North Carolina, those certain Three
Party Agreements Relating to Lockbox Services by and among Borrower, Lender and Bank of America, N.A., as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time and (ii) with respect to those Individual
Properties other than the Individual Properties located in Oak Ridge, Tennessee and Durham, North Carolina, those certain Property Account and Control Agreements by and among Borrower, Lender and PNC Bank, N.A., as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time. The term “Lockbox Agreement” shall also include any replacement agreement with respect to any Lockbox Account entered into in accordance with the terms of the Loan Documents
and otherwise reasonably acceptable to Lender. 
  
 “Lockbox Bank” shall mean any Eligible Institution approved or appointed by Lender acting as Lockbox Bank under a Lockbox Agreement with respect to each Individual Property. 
  
 “Lockout Period” shall mean the period commencing on
the date hereof and ending on the                         , 2005 [12 FULL MONTHS]. 
  
 “Lockout Yield Maintenance Premium” shall mean an
amount equal to five percent (5%) of the then principal amount of the Loan. 
  
 “Losses” shall mean any and all claims, suits, liabilities (including, without limitation, strict liabilities), actions, proceedings, obligations, debts, damages, losses, costs, expenses,
fines, penalties, charges, fees, judgments, awards, amounts paid in settlement of whatever kind or nature (including but not limited to legal fees and other costs of defense). 
  

 - 10 - 

 “Major Lease” shall mean as to each Individual Property (i) any Lease which,
individually or when aggregated with all other leases at such Individual Property with the same Tenant or its Affiliate, accounts for five percent (5%) or more of such Individual Property’s aggregate Net Operating Income, (ii) any Lease which
contains any option, offer, right of first refusal or other similar entitlement to acquire all or any portion of such Individual Property, or (iii) any instrument guaranteeing or providing credit support for any Lease meeting the requirements of (i)
or (ii) above. 
  
 “Maker” shall have the
meaning set forth in the preamble hereto. 
  
 “Management Agreement” shall mean, with respect to any Individual Property, the management agreement entered into by and between Borrower [and/or Operating Lessee] and Manager, pursuant to which Manager is to
provide management and other services with respect to the Property, as the same may be amended, restated, replaced, supplemented or otherwise modified in accordance with the terms of this Agreement. 
  
 “Manager” shall mean Prism Hospitality, L.P. or such
other entity selected as the manager of the Properties or any Individual Property in accordance with the terms of this Agreement. 
  
 “Maryland Guarantor” shall have the meaning set forth in the preamble hereto. 
  
 “Maryland Guaranty” shall mean that certain Guaranty
dated as of the date hereof, given by Maryland Guarantor to Lender as the same may be amended, restated, replaced, supplemented, severed or otherwise modified from time to time. 
  
 “Maryland Maker” shall have the meaning set forth in the preamble hereto. 
  
 “Maryland Properties” shall mean (i)
                                        ,
(ii)
                                        
and (iii)
                                        .

  
 “Material Adverse Effect” shall mean a
material adverse effect, as determined by Lender in its reasonable discretion, on (i) the financial condition of any Borrower, (ii) the ability of Borrower to repay principal and interest on the Loan or to pay or perform any of its other material
obligations, liabilities and indebtedness under this Agreement or any of the Loan Documents to which it is a party as such payment or performance becomes due in accordance with the terms thereof, (iii) the ability of the Borrower Principal to
perform any of its obligations or liabilities under this Agreement as such obligation or liability becomes due in accordance with the terms hereof, (iv) the rights, powers and remedies of Lender under the Loan Documents or the validity, legality or
enforceability of this Agreement or any of the other Loan Documents, (v) the security interest or lien of Lender in any Individual Property or the priority of such security interest or lien and (vi) the value or use of the Individual Properties
collectively taken as a whole. 
  
 “Maturity
Date” shall mean the Payment Date occurring in                     , 2007, as such date may be extended pursuant to Section
2.3(b) hereof. 
  
 “Maximum Legal Rate”
shall mean the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged or received on 

  

 - 11 - 

 
the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents, under the laws of such state or states whose laws are held by
any court of competent jurisdiction to govern the interest rate provisions of the Loan. 
  
 “Member” shall have the meaning set forth in Section 6.1(c). 
  
 “Mezzanine Borrower” shall mean individually and collectively, as the context may require, (i) Capital Lodging Properties I
Limited Partner, L.P. and (ii) Capital Lodging TRS I, Corp. 
  
 “Mezzanine Debt Service” shall mean, with respect to any particular period of time, interest payments, due under the Mezzanine Note for such period. 
  
 “Mezzanine Default” shall have the meaning ascribed
to the term “Event of Default” in the Mezzanine Loan Agreement. 
  
 [“Mezzanine Extension Option” shall have the meaning ascribed to the term “Extension Option” in the Mezzanine Loan Agreement.] 
  
 “Mezzanine Lender” shall mean the owner and holder of
the Mezzanine Loan. 
  
 “Mezzanine
Loan” shall mean that certain loan made by Mezzanine Lender to Mezzanine Borrower on the date hereof pursuant to the Mezzanine Loan Agreement, as the same may be amended or split pursuant to the terms of the Mezzanine Loan
Documents. 
  
 “Mezzanine Loan
Agreement” shall mean that certain Mezzanine Loan Agreement dated as of the date hereof between Mezzanine Borrower and Mezzanine Lender. 
  
 “Mezzanine Loan Allocated Loan Amount” shall, with respect to each Individual Property, have the meaning ascribed to the term
“Allocated Loan Amount” in the Mezzanine Loan Agreement. 
  
 “Mezzanine Loan Documents” shall mean all documents or instruments evidencing, securing or guaranteeing the Mezzanine Loan, including without limitation, the Mezzanine Loan Agreement.

  
 “Mezzanine Note” shall mean that
certain Promissory Note dated as of the date hereof given by Mezzanine Borrower to Mezzanine Lender in the principal amount of [$40,000,000.00.] 
  
 “Mezzanine Rate Cap” shall have the meaning ascribed to the term “Rate Cap” in the Mezzanine Loan Agreement. 

 
 “Monthly Payment Amount” shall mean the monthly
amount of interest due and payable pursuant to this Agreement and the Note. 
  
 “Monthly Mezzanine Debt Service Payment Amount” shall mean the monthly amount of interest due and payable pursuant to the Mezzanine Loan Agreement and the Mezzanine Note. 
  

 - 12 - 

 “Moody’s” shall mean Moody’s Investor Services, Inc. 
  
 “Mortgage” shall mean, with respect to each
Individual Property, except for the Maryland Properties, that certain first priority mortgage/deed of trust/deed to secure debt and security agreement dated the date hereof, executed and delivered by Borrower as security for the Loan and encumbering
such Individual Property, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, and with respect to the Maryland Properties, each Indemnity Deed of Trust. 
  
 “Net Operating Income” shall mean, with respect to
any period of time, the amount obtained by subtracting Operating Expenses from Operating Income. Net Operating Income shall be calculated (i) based on the financial reports delivered to Lender pursuant to the terms hereof if such reports have been
timely delivered by Borrower pursuant to the terms hereof and prepared by or on behalf of Borrower in good faith or (ii) by Lender in its sole discretion in the event such financial reports are not delivered to Lender in a timely manner or were not
prepared by or on behalf of Borrower in good faith. For purposes of any computation of Net Operating Income required hereunder that includes one or more of the twelve (12) full months immediately preceding June 2004, the Net Operating Income for
each such month shall be as set forth on Schedule VI attached hereto. 
  
 “Net Proceeds” shall have the meaning set forth in Section 8.4(b) hereof. 
  
 “Net Liquidation Proceeds After Debt Service” shall have the meaning set forth in the Mezzanine Loan Agreement. 
  
 “Net Proceeds Deficiency” shall have the meaning set
forth in Section 8.4(b)(vi) hereof. 
  
 “Note” shall mean that certain promissory note of even date herewith in the principal amount of [$60,000,000.00], made by Maker in favor of Lender, as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time. 
  
 “Note
Rate” shall mean (a) from and including the Closing Date through but excluding the Selected Day first occurring after the Closing Date, an interest rate per annum equal to
            %; and (b) from and including the Selected Day first occurring after the Closing Date through and including the Maturity Date, an interest rate per annum equal to (i) the
LIBOR Rate (in all cases where clause (ii) below does not apply), or (ii) the Static LIBOR Rate, to the extent provided in accordance with the provisions of Section 2.2(b). 
  
 “OFAC” shall have the meaning set forth in Section 4.40 hereof. 
  
 “Offering Document Date” shall have the meaning set
forth in Section 5.11(c)(i)(D) hereof. 
  
 “Operating
Expenses” shall mean, with respect to any period of time, the total of all expenses actually paid or due and payable, computed in accordance with GAAP, of whatever kind relating to the operation, maintenance and management of the
Properties, including without limitation, utilities, ordinary repairs and maintenance, Insurance Premiums, license fees, Taxes and Other Charges, advertising expenses, payroll and related taxes, computer processing charges, 

  

 - 13 - 

 
management fees equal to the greater of 3% of the Operating Income and the management fees actually paid under the Management Agreement, actual franchise
fees incurred in connection with the operation of the Properties, operational equipment or other lease payments as approved by Lender, the sum of the Replacement Reserve Monthly Deposits required to be made, or would be required if the Letter of
Credit or the Replacement Letter of Credit Cash Deposit, if applicable, had not been delivered by Borrower to Lender, during such period, but specifically excluding depreciation and amortization, income taxes, Debt Service, any
incentive fees due under the Management Agreement, any item of expense that in accordance with GAAP should be capitalized but only to the extent the same would qualify for funding from the Reserve Accounts, any item of expense that would otherwise
be covered by the provisions hereof but which is paid by any Tenant under such Tenant’s Lease or other agreement, and deposits into the Reserve Accounts. 
  

“Operating Expense Reserve Account” shall have the meaning set forth in Section 9.10 hereof. 
  
 “Operating Expense Reserve Funds” shall have the
meaning set forth in Section 9.10 hereof. 
  
 “Operating Income” shall mean, with respect to any period of time, all income, computed in accordance with GAAP, derived from the ownership and operation of the Properties from whatever source,
including, but not limited to, Rents, utility charges, escalations, forfeited security deposits, interest on credit accounts, service fees or charges, license fees, parking fees, rent concessions or credits, and other required
pass-throughs but excluding sales, use and occupancy or other taxes on receipts required to be accounted for by Borrower to any Governmental Authority, refunds and uncollectible accounts, sales of furniture, fixtures and equipment,
interest income from any source other than the escrow accounts, Reserve Accounts or other accounts required pursuant to the Loan Documents, Insurance Proceeds (other than business interruption or other loss of income insurance), Awards, unforfeited
security deposits, utility and other similar deposits, income from tenants not paying rent, income from tenants in bankruptcy, non-recurring or extraordinary income, including, without limitation lease termination payments, any payments made under
any Rate Cap or Mezzanine Rate Cap, and any disbursements to Borrower from the Reserve Funds. 
  
 “Operating Lease” shall mean those certain Operating Leases described on Schedule V attached hereto. 
  
 “Operating Lease Subordination Agreement” shall mean those certain Operating Lease Subordination Agreements with respect to the
Properties dated the date hereof between Lender and Operating Lessee, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 
  
 “Operating Lessee” shall mean Capital Lodging TRS Operations I, Inc. 
  
 “Operating Lessee Documents” shall mean the Note,
Loan Agreement, Mortgages, the Assignment of Management Agreement and all other documents executed and/or delivered by Operating Lessee in connection with the Loan. 
  

 - 14 - 

 “Other Charges” shall mean all ground rents, maintenance charges, impositions
other than Taxes, and any other charges, including, without limitation, vault charges and license fees for the use of vaults, chutes and similar areas adjoining any Individual Property, now or hereafter levied or assessed or imposed against such
Individual Property or any part thereof. 
  
 “Participations” shall have the meaning set forth in Section 13.1 hereof. 
  
 “Patriot Act” shall have the meaning set forth in Section 4.40 hereof. 
  
 “Payment Date” shall mean the day that is seven (7)
Business Days prior to the Selected Day. 
  
 “Permitted
Encumbrances” shall mean, with respect to an Individual Property, collectively, (a) the Lien and security interests created by the Loan Documents, (b) all Liens, encumbrances and other matters disclosed in the Title Insurance Policy
relating to such Individual Property, (c) Liens, if any, for Taxes imposed by any Governmental Authority not yet due or delinquent, and (d) such other title and survey exceptions as Lender has approved or may approve in writing in Lender’s sole
discretion, all of which in the aggregate as of the date hereof do not materially adversely affect the value or use of any Individual Property or Borrower’s ability to repay the Loan. 
  
 “Permitted Investments” shall mean to the extent
available from Lender or Lender’s servicer for deposits in the Reserve Accounts, any one or more of the following obligations or securities acquired at a purchase price of not greater than par, including those issued by a servicer of the Loan,
the trustee under any securitization or any of their respective Affiliates, payable on demand or having a maturity date not later than the Business Day immediately prior to the date on which the funds used to acquire such investment are required to
be used under this Agreement and meeting one of the appropriate standards set forth below: [LENDER TO CONFIRM] 
  
 (a) obligations of, or obligations fully guaranteed as to payment of principal and interest by, the United States or any agency or instrumentality thereof
provided such obligations are backed by the full faith and credit of the United States of America including, without limitation, obligations of: the U.S. Treasury (all direct or fully guaranteed obligations), the General Services Administration
(participation certificates), and the Small Business Administration (guaranteed participation certificates and guaranteed pool certificates); provided, however, that the investments described in this clause must (i) have a predetermined fixed dollar
of principal due at maturity that cannot vary or change, (ii) be rated “AAA” or the equivalent by each of the Rating Agencies, (iii) if rated by S&P, must not have an “r” highlighter affixed to their rating, (iv) if such
investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (v) such investments must not be subject to liquidation
prior to their maturity; 
  
 (b) reserved; 
  
 (c) obligations of the following United States government sponsored agencies:
the Federal Home Loan Banks (consolidated debt obligations); provided, however, that the 

  

 - 15 - 

 
investments described in this clause must (i) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (ii) if rated by
S&P, must not have an “r” highlighter affixed to their rating, (iii) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move
proportionately with that index, and (iv) such investments must not be subject to liquidation prior to their maturity; 
  
 (d) unsecured certificates of deposit or time deposits of any bank, the short term obligations of which at all times are rated in the highest short term
rating category by each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency in the highest short term rating category and otherwise acceptable to each other Rating Agency, as confirmed in writing that such
investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the Securities); provided, however, that the investments described in this clause must (i)
have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (ii) if rated by S&P, must not have an “r” highlighter affixed to their rating, (iii) if such investments have a variable rate of interest, such
interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (iv) such investments must not be subject to liquidation prior to their maturity; and 
  
 (e) fully Federal Deposit Insurance Corporation-insured demand and time
deposits in, or certificates of deposit of any bank or trust company, savings and loan association or savings bank, the short term obligations of which at all times are rated in the highest short term rating category by each Rating Agency (or, if
not rated by all Rating Agencies, rated by at least one Rating Agency in the highest short term rating category and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in
a downgrade, qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the Securities); provided, however, that the investments described in this clause must (i) have a predetermined fixed dollar of principal due at
maturity that cannot vary or change, (ii) if rated by S&P, must not have an “r” highlighter affixed to their rating, (iii) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate
index plus a fixed spread (if any) and must move proportionately with that index, and (iv) such investments must not be subject to liquidation prior to their maturity. 
  
 provided, however, that no obligation or security shall be a Permitted Investment if (A) such obligation or security
evidences a right to receive only interest payments, (B) the right to receive principal and interest payments on such obligation or security are derived from an underlying investment that provides a yield to maturity in excess of one hundred twenty
percent (120%) of the yield to maturity at par of such underlying investment or (C) such obligation or security has a remaining term to maturity in excess of one (1) year, [and provided, further, however, no obligation or security shall be a
Permitted Investment following written notification by Borrower to Lender that such obligation or security may not qualify as “cash,” “cash items” or “Government securities” within the meaning of section 856(c)(4)(A) of
the Internal Revenue Code of 1986 as it may be from time to time amended — LENDER TO CONFIRM]. 
  

 - 16 - 

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

  
 “Personal Property” shall have the
meaning set forth in the granting clause of the Mortgages. 
  
 “Physical Conditions Report” shall mean, with respect to each Individual Property, a report prepared by a company satisfactory to Lender regarding the physical condition of such Individual Property, satisfactory in
form and substance to Lender in its sole discretion. 
  
 “Policies” shall have the meaning specified in Section 8.1(b) hereof. 
  
 “Prepayment Lockout Window” shall mean, with respect to any Interest Period, the period from the Payment Date through the end of
such Interest Period. 
  
 “Prohibited
Transfer” shall have the meaning set forth in Section 7.2 hereof. 
  
 “Prepayment Premium” shall mean an amount equal to (i) one percent (1%) of the principal amount of the Loan being prepaid if the applicable prepayment is made after
            , 2005 [12 FULL MONTHS] and prior to             , 2006 [24 FULL MONTHS] and (ii) zero
percent (0.0%) of the amount of the Loan being prepaid if the applicable prepayment is made on or after             , 2006 [24 FULL MONTHS]. 
  
 “Properties” shall mean, collectively, each and every
Individual Property which is subject to the terms of this Agreement. 
  
 “Provided Information” shall have the meaning set forth in Section 13.4(a) hereof. 
  
 “Qualified Manager” shall mean Manager or a reputable and experienced professional management organization (a) which manages,
together with its affiliates, at least ten (10) full-service hotels, exclusive of the Properties and (b) approved by Lender, which approval shall not have been unreasonably withheld and for which Lender shall have received (i) written confirmation
from the Rating Agencies that the employment of such manager will not result in a downgrade, withdrawal or qualification of the initial, or if higher, then current ratings issued in connection with a Securitization, or if a Securitization has not
occurred, any ratings to be assigned in connection with a Securitization, and (ii) with respect to any Affiliated Manager, a revised substantive non-consolidation opinion if one was delivered in connection with the closing of the Loan. 

 
 “Rate Cap” shall mean an interest rate cap with a
maturity date of the initial Maturity Date entered into with Bank of America, N.A. or an Acceptable Counterparty with a notional amount equal to the Loan for the term of the Loan and a LIBOR strike price not greater than [five percent (5%)];
provided, however, that in the event the rating of the counterparty (including, but not limited to, Bank of America, N.A.) to any Rate Cap is downgraded below the credit rating required to be maintained by the Acceptable Counterparty
pursuant to the terms hereof, such Rate Cap will be replaced by a Rate Cap in the same form and substance as the Rate 

  

 - 17 - 

 
Cap purchased by the Borrower in connection with the closing of the Loan and shall be obtained from a counterparty with a credit rating meeting the
requirements set forth hereinabove with respect to an Acceptable Counterparty; and provided, further, such Rate Cap shall be accompanied by legal opinions regarding the Rate Cap, in form and substance acceptable to Lender, including,
without limitation opinions with respect to (i) enforceability, (ii) payment priority, (iii) choice of law and (iv) enforcement of judgments. Furthermore, each Rate Cap shall provide for (i) the calculation of interest, (ii) the determination of the
interest rate, (iii) the modification of the Interest Period and (iv) the distribution of payments thereunder to be identical to the definition of Interest Period set forth herein. 
  
 “Rating Agencies” shall mean each of S&P, Moody’s and Fitch, or any other
nationally-recognized statistical rating agency which has been approved by Lender. 
  
 “REA” shall mean any “construction, operation and reciprocal easement agreement” or similar agreement (including any “separate agreement” or other agreement between Borrower
and one or more other parties to an REA with respect to such REA) affecting any Individual Property or portion thereof. 
  
 “Release” shall have the meaning set forth in Section 12.5 hereof. 
  
 “Release Price” shall mean, for each Individual Property being released in accordance with Section
2.5 hereof, (i) if the aggregate prepayments made pursuant to Section 2.5 prior to the date of the applicable release are equal to or less than $15,000,000 [$10,000,000 IN MEZZ], an amount equal to 100% of the Allocated Loan Amount for such
Individual Property, (ii) if the aggregate prepayments made pursuant to Section 2.5 prior to the date of the applicable release are greater than $15,000,000 [$10,000,000 IN MEZZ] and equal to or less than $30,000,000 [$20,000,000 IN
MEZZ], an amount equal to 110% of the Allocated Loan Amount for such Individual Property; and (iii) if the aggregate prepayments made pursuant to Section 2.5 prior to the date of the applicable release are greater than $30,000,000
[$20,000,000 IN MEZZ], an amount equal 120% of the Allocated Loan Amount for such Individual Property. 
  
 “REMIC Trust” shall mean a “real estate mortgage investment conduit” (within the meaning of Section 860D, or applicable
successor provisions, of the Code) that holds the Note. 
  
 “Rent Roll” shall have the meaning set forth in Section 4.24 hereof. 
  
 “Rents” shall have the meaning set forth in the Mortgages with respect to each Individual Property. 
  
 “Replacement Management Agreement” shall mean,
collectively, (a) either (i) a management agreement with a Qualified Manager substantially in the same form and substance as the Management Agreement, or (ii) a management agreement with a Qualified Manager, which management agreement shall be
acceptable to Lender in form and substance, provided, with respect to this subclause (ii), Lender, at its option, may require that Borrower obtain confirmation from the applicable Rating Agencies that such management agreement will not result in a
downgrade, withdrawal or qualification of the initial, or if higher, then current rating of the Securities or any class thereof; and (b) a conditional assignment of management agreement substantially in the form of the Assignment of Management
Agreement (or such other form 

  

 - 18 - 

 
acceptable to Lender), executed and delivered to Lender by Borrower and such Qualified Manager at Borrower’s expense. 
  
 “Replacement Rate Cap” shall mean an interest rate
cap from an Acceptable Counterparty with terms identical to the Rate Cap other than the term of such Rate Cap. 
  
 “Replacement Reserve Account” shall have the meaning set forth in Section 9.2(b) hereof. 
  
 “Replacement Letter of Credit Cash Deposit” shall
mean                             . 
  
 “Replacement Reserve Funds” shall have the meaning set forth in Section 9.2(b) hereof. 

 
 “Replacement Reserve Monthly Deposit” shall have
the meaning set forth in Section 9.2(b) hereof. 
  
 “Replacements” shall have the meaning set forth in Section 9.2(a) hereof. 
  
 “Required Repair Account” shall have the meaning set forth in Section 9.1(b) hereof. 
  
 “Required Repair Funds” shall have the meaning set
forth in Section 9.1(b) hereof. 
  
 “Required
Repairs” shall have the meaning set forth in Section 9.1(a) hereof. 
  
 “Required Work” shall have the meaning set forth in Section 9.4 hereof. 
  
 “Reserve Accounts” shall mean the Tax and Insurance Reserve Account, the Replacement Reserve Account, the Required Repair Account,
the Operating Expense Reserve Account, the Extraordinary Expense Reserve Account, the Cash Management Account or any other escrow account established by the Loan Documents. During a Cash Management Period, the Reserve Accounts other than the Cash
Management Account may be a sub-account of the Cash Management Account. 
  
 “Reserve Funds” shall mean the Tax and Insurance Reserve Funds, the Replacement Reserve Funds, the Required Repair Funds, the Operating Expense Reserve Funds, the Extraordinary Expense Reserve Funds or any other
escrow funds established by the Loan Documents. 
  
 “Reserve Percentage” shall mean, with respect to any day of any Interest Period, that percentage (expressed as a decimal) which is in effect on such day, as prescribed by the Board of Governors of the Federal Reserve
System (or any successor), for determining the maximum reserve requirement (including basic, supplemental, emergency, special and marginal reserves) generally applicable to financial institutions regulated by the Federal Reserve Board comparable in
size and type to Lender in respect of “Eurocurrency liabilities” (or in respect of any other category of liabilities which includes deposits by reference to which the interest rate on the Loan is determined), whether or not Lender has any
Eurocurrency liabilities or such requirement otherwise in fact applies to Lender. The LIBOR Rate shall be adjusted automatically as of the 

  

 - 19 - 

 
effective date of each change in the Reserve Percentage. As of the date hereof, the Reserve Percentage is zero, however, there can be no assurance as to what
such amount may be in the future. 
  
 “Restoration” shall mean, following the occurrence of a Casualty or a Condemnation which is of a type necessitating the repair of an Individual Property, the completion of the repair and restoration of such
Individual Property as nearly as possible to the condition the Individual Property was in immediately prior to such Casualty or Condemnation, with such alterations as may be reasonably approved by Lender. 
  
 “Restoration Consultant” shall have the meaning set
forth in Section 8.4(b)(iii) hereof. 
  
 “Restoration
Retainage” shall have the meaning set forth in Section 8.4(b)(iv) hereof. 
  
 “Restricted Party” shall have the meaning set forth in Section 7.1 hereof. 
  
 “Sale or Pledge” shall have the meaning set forth in Section 7.1 hereof. 
  
 “Securities” shall have the meaning set forth in
Section 13.1 hereof. 
  
 “Securities Act”
shall mean the Securities Act of 1933, as amended. 
  
 “Securities Liabilities” shall have the meaning set forth in Section 3.5 hereof. 
  
 “Securitization” shall have the meaning set forth in Section 13.1 hereof. 
  
 “Securitization Closing Date” shall mean a date
selected by Lender in its sole discretion by providing not less than twenty-four (24) hours prior notice to Borrower. 
  
 “Selected Day” means the fifteenth (15th) day of each calendar month, or such other date as determined by the Lender pursuant to
Section 2.2(d) hereof. 
  
 “SPE Component
Entity” shall have the meaning set forth in Section 6.1(b) hereof. 
  
 “Special Member” shall have the meaning set forth in Section 6.1(c). 
  
 “Standard Statements” shall have the meaning set forth in Section 5.11(c)(i)(A) hereof. 
  
 “S&P” shall mean Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc. 
  
 “State” shall mean the state or states with respect to an Individual Property the State in which such Individual Property or any part thereof is located. 
  
 “Static LIBOR Rate” shall have the meaning set forth in Section 2.2(b) hereof. 
  
 “Static LIBOR Rate Loan” shall have the meaning set
forth in Section 2.3(f)(iii) hereof. 
  

 - 20 - 

 “Tax and Insurance Reserve Funds” shall have the meaning set forth in Section 9.6
hereof. 
  
 “Tax and Insurance Reserve
Account” shall have the meaning set forth in Section 9.6 hereof. 
  
 “Taxes” shall mean all real estate and personal property taxes, assessments, water rates or sewer rents, now or hereafter levied or assessed or imposed against any Individual Property or part
thereof. 
  
 “Tenant” shall mean any
Person leasing, subleasing or otherwise occupying any portion of any Individual Property under a Lease or other occupancy agreement with Borrower, other than hotel guests. 
  
 “Termination Fee Deposit” shall have the meaning set forth in Section 9.3(b). 
  
 “Title Company” shall mean [Lawyers Title
Insurance Company.] 
  
 “Title Insurance
Policy” shall mean that certain ALTA mortgagee title insurance policy issued with respect to each Individual Property and insuring the lien of the Mortgage. 
  
 “Transferee” shall have the meaning set forth in Section 7.5 hereof. 
  
 “Tribunal” shall mean any state, commonwealth,
federal, foreign, territorial or other court or governmental department, commission, board, bureau, district, authority, agency, central bank, or instrumentality, or any arbitration authority. 
  
 “Triggering Event” shall mean the earlier to occur
of: (i) an Event of Default, (ii) any time the Net Operating Income for the Properties then encumbered by a Mortgage for the immediately preceding twelve (12) month period is less than 75% of the Closing NOI for the Properties then encumbered by a
Mortgage or (iii) a Mezzanine Default. 
  
 “UCC” or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in the State where the applicable Individual Property is located. 
  
 “Underwriter Group” shall have the meaning set forth
in Section 13.5(b) hereof. 
  
 “Utility
Bonds” shall mean utility bonds required to be delivered by Mortgage Borrower to any utility company providing utility services to each respective Individual Property. 
  
 Section 1.2. PRINCIPLES OF CONSTRUCTION 
  
 (a) All references to sections and schedules are to sections
and schedules in or to this Agreement unless otherwise specified. All uses of the word “including” shall mean “including, without limitation” unless the context shall indicate otherwise. Unless otherwise specified, the words
“hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Unless otherwise specified, all
meanings attributed to defined 

  

 - 21 - 

 
terms herein shall be equally applicable to both the singular and plural forms of the terms so defined. The term “Borrower”, as used herein, shall
mean, individually and collectively, as the context requires, (i) “Maker” in its capacity as the owner of all the Properties other than the Maryland Properties, (ii) “Maker” in its capacity as Operating Lessee and (iii)
“Maryland Guarantor” in its capacity as the owner of the Maryland Properties. 
  
 (b) All covenants, representations, terms and conditions contained in this Agreement applicable to (i) Borrower shall be deemed to apply
to each Borrower individually, (ii) Maker shall be deemed to apply to each Maker individually and (iii) Property or Properties shall be deemed to apply to each Individual Property individually. 
  
 ARTICLE 2 
 GENERAL TERMS 
  
 Section 2.1. LOAN COMMITMENT; DISBURSEMENT TO BORROWER 
  
 (a) Subject to and upon the terms and conditions set forth herein, Lender hereby agrees to make and Maker
hereby agrees to accept the Loan on the Closing Date. 
  
 (b) Maker may request and receive only one borrowing in respect of the Loan and any amount borrowed and repaid in respect of the Loan may not be reborrowed. 
  
 (c) The Loan shall be evidenced by the Note and secured by the Mortgages and the other Loan Documents.

  
 (d) Maker shall use the proceeds of the Loan
to (i) pay certain costs in connection with the acquisition of the Properties, (ii) make deposits into the Reserve Funds on the Closing Date in the amounts provided herein, (iii) pay costs and expenses incurred in connection with the closing of the
Loan, as approved by Lender, (iv) fund any working capital requirements of the Properties, and (v) distribute the balance, if any, to its partners, members or shareholders, as applicable. 
  
 Section 2.2. INTEREST RATE 
  
 (a) Note Rate. Interest on the outstanding principal
balance of the Loan shall bear interest at the Note Rate. Except as otherwise set forth in this Agreement, interest shall be paid in arrears. 
  
 (b) Unavailability of LIBOR Rate. In the event that Lender shall have determined (which determination shall be conclusive and
binding upon Maker absent manifest error) that by reason of circumstances affecting the interbank eurodollar market, adequate and reasonable means do not exist for ascertaining the LIBOR Rate, then Lender shall forthwith give notice by telephone of
such determination, confirmed in writing, to Maker at least one (1) day prior to the last day of the related Interest Period. If such notice is given, the Note Rate, commencing with the first (1st) day of the next succeeding Interest Period, shall
be the LIBOR Rate in effect for the most recent Interest Period (the “Static LIBOR Rate”). 
  

 - 22 - 

 If, pursuant to the terms of this Agreement, the Loan has been converted to the Static LIBOR Rate and
Lender shall determine (which determination shall be conclusive and binding upon Maker absent manifest error) that the event(s) or circumstance(s) which resulted in such conversion shall no longer be applicable, Lender shall give notice thereof to
Maker, and the Static LIBOR Rate shall convert to the LIBOR Rate effective on the first day of the next succeeding Interest Period. Notwithstanding any provision of this Agreement to the contrary, in no event shall Maker have the right to elect to
convert from the LIBOR Rate to the Static LIBOR Rate. 
  
 (c) Computations and Determinations. All interest shall be computed on the basis of a year of 360 days and paid for the actual number of days elapsed. Lender shall determine each interest rate applicable to the Debt in accordance
with this Agreement and its determination thereof shall be conclusive in the absence of manifest error. The books and records of Lender shall be prima facie evidence of all sums owing to Lender from time to time under this Agreement, but the failure
to record any such information shall not limit or affect the obligations of Maker under the Loan Documents. 
  
 (d) Selected Day. Prior to a Securitization, Lender may in its sole discretion change the day of the month that will constitute the
Selected Day. 
  
 (e) Default Rate. Any
principal of, and to the extent permitted by applicable law, any interest on the Note, and any other sum payable hereunder, which is not paid when due shall bear interest from the date due and payable until paid, payable on demand, at the Default
Rate. 
  
 (f) Usury Savings. This
Agreement and the Note are subject to the express condition that at no time shall Maker be obligated or required to pay interest on the principal balance of the Loan at a rate which could subject Lender to either civil or criminal liability as a
result of being in excess of the Maximum Legal Rate. If, by the terms of this Agreement or the other Loan Documents, Maker is at any time required or obligated to pay interest on the principal balance due hereunder at a rate in excess of the Maximum
Legal Rate, the LIBOR Rate, the Static LIBOR Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to the Maximum Legal Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed to have been
payments in reduction of principal and not on account of the interest due hereunder. All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of the sums due under the Loan, shall, to the extent permitted by applicable
law, be amortized, prorated, allocated, and spread throughout the full stated term of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed the Maximum Legal Rate of interest from time to time
in effect and applicable to the Loan for so long as the Loan is outstanding. 
  
 Section 2.3. LOAN PAYMENTS 
  
 (a) Payments. Maker agrees to pay sums under the Note in installments as follows: 
  
 (i) on the Closing Date, a payment of all interest that will
accrue calculated at the Note Rate for the period from and including the Closing Date through and including the last day of the initial Interest Period; 
  

 - 23 - 

 (ii) on each Payment Date, the monthly installment of interest calculated at the Note
Rate for the applicable Interest Period; and 
  
 (iii) on the Maturity Date, the outstanding principal amount and all interest thereon, together with interest through the end of the Interest Period in which the Maturity Date falls. The accrued and unpaid interest due on the Maturity Date
shall be calculated for the full final Interest Period, notwithstanding that such Interest Period may extend beyond the Maturity Date. 
  
 (b) Extension of the Maturity Date. Maker shall have the option to extend the term of the Loan beyond the initial Maturity Date for
two (2) successive terms (each, an “Extension Option”) of one (1) year each to (x) the Payment Date occurring in [            ], 2008, and (y) the Payment Date occurring in
[            ], 2009 (each such date, the Extended Maturity Date”), respectively, and, as to each Extension Option, upon satisfaction of the following terms and conditions:

  
 (i) no Event of Default shall have occurred
and be continuing at the time the applicable Extension Option is exercised and on the date that the applicable extension term is commenced; 
  
 (ii) Maker shall notify Lender of its irrevocable election to extend the Maturity Date as aforesaid not earlier than three (3) months, and
no later than one (1) month, prior to the then applicable Maturity Date; 
  
 (iii) Maker shall obtain and deliver to Lender prior to exercise of such Extension Option, one or more Replacement Rate Caps, which Replacement Rate Caps shall be effective commencing on the first day of such
Extension Option and shall have a maturity date not earlier than the Maturity Date as extended pursuant to the terms of this Section 2.3; 
  
 (iv) in connection with each Extension Option, Maker shall have delivered to Lender together with its notice pursuant to subsection (b) of
this Section 2.3 and as of the commencement of the applicable Extension Option, an Officer’s Certificate in form acceptable to the Lender certifying that each of the representations and warranties of Maker contained in the Loan Documents is
true, complete and correct in all material respects as of the date of such Officer’s Certificate to the extent such representations and warranties are not matters which by their nature can no longer be true and correct as a result of the
passage of time; 
  
 (v) in connection with the
exercise of each Extension Option, Maker shall have paid to Lender the Extension Fee; 
  
 (vi) at the time the applicable Extension Option is exercised and on the date that the applicable extension term is commenced, the Debt
Service Coverage Ratio of the Properties then encumbered by a Mortgage for the preceding twelve (12) full month period shall not be less than (a) with respect to the first Extension Option, [1.25:1.00] and (b) with respect to the second
Extension Option, [1.35:1.00]; and 
  

 - 24 - 

 (vii) the Mezzanine Extension Option corresponding to the applicable Extension Option
hereunder shall have been exercised in accordance with the terms of the Mezzanine Loan Agreement or the Mezzanine Loan shall be prepaid in full. 
  
 All references in this Agreement and in the other Loan Documents to the Maturity Date shall mean the applicable Extended Maturity Date in the event the
applicable Extension Option is exercised. 
  
 (c)
Payments after Default. Upon the occurrence and during the continuance of an Event of Default, (i) interest on the outstanding principal balance of the Loan and, to the extent permitted by law, overdue interest and other amounts due in
respect of the Loan shall accrue at the Default Rate, and (ii) Lender shall be entitled to receive and Maker shall pay to Lender all cash flow from the Property in accordance with the terms of the Cash Management Agreement, such amount to be applied
by Lender to the payment of the Debt in such order as Lender shall determine in its sole discretion, including, without limitation, alternating applications thereof between interest and principal. Interest at the Default Rate shall be computed from
the occurrence of the Event of Default until the earlier of (x) the actual receipt and collection of the Debt (or that portion thereof that is then due) and (y) the cure of such Event of Default. To the extent permitted by applicable law, interest
at the Default Rate shall be added to the Debt, shall itself accrue interest at the same rate as the Loan and shall be secured by the Mortgages. This paragraph shall not be construed as an agreement or privilege to extend the date of the payment of
the Debt, nor as a waiver of any other right or remedy accruing to Lender by reason of the occurrence of any Event of Default; the acceptance of any payment from Maker shall not be deemed to cure or constitute a waiver of any Event of Default; and
Lender retains its rights under this Agreement to accelerate and to continue to demand payment of the Debt upon the happening of and during the continuance any Event of Default, despite any payment by Maker to Lender. 
  
 (d) Late Payment Charge. If any principal or interest
payment is not paid by Maker on or before the date on which it is due, Maker shall pay to Lender upon demand an amount equal to the lesser of five percent (5%) of such unpaid sum or the maximum amount permitted by applicable law in order to defray
the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such delinquent payment. Any such amount shall be secured by the Mortgages and the other Loan Documents to the
extent permitted by applicable law. 
  
 (e)
Method and Place of Payment. Each payment by Maker hereunder or under the Note shall be payable at P.O. Box 65585, Charlotte, North Carolina 28265-0585, or by wire transfer to Bank of America, N.A., ABA #111000025, Account #4782779943 for
credit to CMSG, Loan #58324, Attn: Commercial Mortgage Loan Servicing #1777, or at such other place as the Lender may designate from time to time in writing, on the date such payment is due, to Lender by deposit to such account as Lender may
designate by written notice to Maker. Each payment by Maker hereunder or under the Note shall be made in funds settled through the New York Clearing House Interbank Payments System or other funds immediately available to Lender by 11:00 a.m., New
York City time, on the date such payment is due, to Lender by deposit to such account as Lender may designate by written notice to Maker. Whenever any payment hereunder or under the Note shall be stated to be 

  

 - 25 - 

 
due on a day which is not a Business Day, such payment shall be made on the first Business Day succeeding such scheduled due date. Notwithstanding the
foregoing, amounts due under the Loan Documents shall be deemed paid so long as there is sufficient money in the Cash Management Account for payment of such amounts pursuant to Section 10 of this Agreement and Lender’s access to such money has
not been constrained or constricted in any manner. 
  
 (f) Additional Payment Provisions. 
  
 (i) If at any time after the date hereof, Lender (which shall include, for purposes of this Section, any corporation controlling Lender) reasonably determines that due to the adoption or modification of any Legal Requirement regarding
Lender’s required levels of reserves, deposits, Federal Deposit Insurance Corporation insurance or capital (including any allocation of capital requirements or conditions), or similar requirements (other than requirements relating to taxation,
which are addressed in subsection (ii) below), or any interpretation or administration thereof by any Tribunal or compliance of Lender with any of such requirements, has or would have the effect of (a) increasing Lender’s costs relating to the
Loan, or (b) reducing the yield or rate of return of Lender on the Loan, to a level below that which Lender could have achieved but for the adoption or modification of any such Legal Requirements, Maker shall, within fifteen (15) days of any request
by Lender, pay to Lender such additional amounts as (in Lender’s sole judgment, after good faith and reasonable computation) will compensate Lender for such increase in costs or reduction in yield or rate of return of Lender (a
“Consequential Loss”). No failure by Lender to immediately demand payment of any additional amounts payable hereunder shall constitute a waiver of Lender’s right to demand payment of such amounts at any subsequent time. Nothing herein
contained shall be construed or so operate as to require Maker to pay any interest, fees, costs or charges greater than is permitted by applicable Law. 
  
 (ii)(A) All payments made by Maker hereunder shall be made free and clear of, and without reduction for or on account of, income, stamp or
other taxes, levies, imposts, duties, charges, fees, deductions, reserves or withholdings imposed, levied, collected, withheld or assessed by any Governmental Authorities, which are imposed, enacted or become effective on or after the date hereof
(such taxes being referred to collectively as “Foreign Taxes”), excluding (i) income, backup withholding, and franchise taxes of the United States of America, any state, or any political subdivision or taxing authority thereof or therein,
(ii) any Foreign Tax imposed on Lender as a result of any connection between Lender and the taxing jurisdiction other than solely the entering into this Agreement and receiving payments hereunder and (iii) withholding taxes (other than backup
withholding taxes) imposed by the United States of America, any state, or any political subdivision or taxing authority thereof or therein as a result of the failure of Lender to comply with the terms of subsection (B) below. If any such
non-excluded Foreign Taxes are required to be withheld from any amounts payable to Lender hereunder, the amounts so payable to Lender shall be increased to the extent necessary to yield to Lender (after payment of all such non-excluded Foreign
Taxes) interest or any such other amounts payable hereunder at the rate or in the amounts specified hereunder. Whenever any Foreign Tax is payable pursuant to applicable law by Maker, as promptly as reasonably possible thereafter, Maker shall, if
available, send to Lender an original 

  

 - 26 - 

 
official receipt or certified copy thereof showing payment of such Foreign Tax. Maker hereby indemnifies Lender for any incremental taxes, interest or
penalties that may become payable by Lender which may result from any failure by Maker to pay any such Foreign Tax when due to the appropriate taxing authority of which Lender shall have provided Maker with prior written notice or any failure by
Maker to remit to Lender the required receipts or other required documentary evidence; provided that Maker’s obligation to indemnify hereunder for any such incremental taxes, interest or penalties will not apply to any such taxes, interest or
penalties imposed as a result of any failure by Lender (or any person holding an interest in the Loan through Lender) to pay the relevant Foreign Tax promptly following Maker’s making of an indemnity payment hereunder. 
  
 (B) In the event that Lender or any successor and/or assign
of Lender is not organized under the laws of the United States of America or a state thereof or is otherwise treated as a non - “United States Person” for federal income tax purposes, Lender agrees that, prior to the first date on which
any payment is due such entity hereunder, it will deliver to Maker two duly completed copies of United States Internal Revenue Service Form W-8BEN or W-8ECI or successor applicable form, as the case may be, certifying in each case that such entity
is entitled to receive payments under the Note without deduction or withholding of any United States federal income taxes and to establish an exemption from United States backup withholding tax. In the event Lender is organized under the laws of the
United States of America or a state thereof, Lender agrees that, prior to the first date on which any payment is due to such entity hereunder, it will deliver to Make an Internal Revenue Service Form W-9 or successor applicable form, as the case may
be, establishing an exemption from United States backup withholding tax. Each entity required to deliver to Maker a Form W-8BEN or W-8ECI or Form W-9 pursuant to the preceding sentences further undertakes to deliver to Maker two further copies of
the said W-8BEN or W-8ECI or Form W-9, or successor applicable forms, or other manner of certification, as the case may be, on or before the date that any such form expires (which, in the case of the Form W-8ECI, is the last day of each U.S. taxable
year of the non U.S. entity) or becomes obsolete or after the occurrence of any event requiring a change in the most recent form previously delivered by it to Maker, and such other extensions or renewals thereof as may reasonably be requested by
Maker, certifying in the case of a Form W-8BEN or W-8ECI that such entity is entitled to receive payments under the Note without deduction or withholding of any United States federal income taxes, unless in any such case a change in treaty, law or
regulation) has occurred prior to the date on which any such delivery would otherwise be required which renders all such forms inapplicable or which would prevent such entity from duly completing and delivering any such form with respect to it and
such entity advises Maker that it is not capable of receiving payments without any deduction or withholding of United States federal income tax, and in the case of a Form W-9, establishing an exemption from United States backup withholding tax.
Lender’s inability to notify Maker of any such Foreign Tax in accordance with the immediately preceding sentence shall in no way relieve Maker of its obligations under this Section 2.3(f)(ii). 
  
 (iii) If any requirement of law or any change therein or in
the interpretation or application thereof, shall hereafter make it unlawful for Lender to make or maintain a Loan with the Note Rate being based on LIBOR as contemplated hereunder, (i) the 

  

 - 27 - 

 
obligation of Lender hereunder to make such Loan based on LIBOR or to convert the Loan from the Static LIBOR Rate to the LIBOR Rate shall be canceled
forthwith and (ii) any outstanding LIBOR Loan shall be converted automatically to a loan bearing interest at the Static LIBOR Rate (the “Static LIBOR Rate Loan”) on the next succeeding Payment Date or within such earlier period as
required by law. Maker hereby agrees promptly to pay Lender, upon demand, any additional amounts necessary to compensate Lender for any costs incurred by Lender in making any conversion in accordance with this Agreement, including, without
limitation, any interest or fees payable by Lender to lenders of funds obtained by it in order to make or maintain the LIBOR Loan hereunder. If Lender becomes entitled to claim any additional amounts pursuant to this Section 2.3(f)(iii), Lender
shall provide Maker with not less than ninety (90) days written notice specifying in reasonable detail the event by reason of which it has become so entitled and the additional amount required to fully compensate Lender for such additional costs.
Lender’s notice of such costs, as certified to Maker, shall be conclusive absent manifest error. 
  
 (iv) In the event that any change in any requirement of law or in the interpretation or application thereof, or compliance by Lender with
any request or directive (whether or not having the force of law, but other than directives relating to taxation which are addressed in subsection (ii) above) hereafter issued from any central bank or other Governmental Authority: 
  
 (A) shall hereafter impose, modify or hold applicable any
reserve, special deposit, compulsory loan or similar requirement against assets held by, or deposits or other liabilities in or for the account of, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office
of Lender which is not otherwise included in the determination of the LIBOR Rate hereunder, 
  
 (B) shall hereafter have the effect of reducing the rate of return on Lender’s capital as a consequence of its obligations hereunder
to a level below that which Lender could have achieved but for such adoption, change or compliance (taking into consideration Lender’s policies with respect to capital adequacy) by any amount deemed by Lender to be material; or 
  
 (C) shall hereafter impose on Lender any other condition
and the result of any of the foregoing is to increase the cost to Lender of making, renewing or maintaining loans or extensions of credit or to reduce any amount receivable hereunder; 
  
 then, in any such case, Maker shall promptly pay Lender, upon demand, any additional amounts necessary to compensate Lender for such
additional cost or reduced amount receivable which Lender deems to be material as determined by Lender. If Lender becomes entitled to claim any additional amounts pursuant to this Section 2.3(f)(iv), Lender shall provide Maker with not less than
ninety (90) days written notice specifying in reasonable detail the event by reason of which it has become so entitled and the additional amount required to fully compensate Lender for such additional cost or reduced amount. A certificate as to any
additional costs or amounts payable 

  

 - 28 - 

 
pursuant to the foregoing sentence submitted by Lender to Maker shall be conclusive in the absence of manifest error. This provision shall survive payment of
the Note and the satisfaction of all other obligations of Maker under this Agreement and the Loan Documents. 
  
 (v) Maker agrees to indemnify Lender and to hold Lender harmless from any loss or expense which Lender sustains or incurs as a consequence
of (i) any default by Maker in payment of the principal of or interest on a LIBOR Loan, including, without limitation, any such loss or expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain a
LIBOR Loan hereunder, (ii) any prepayment (whether voluntary or mandatory) of the LIBOR Loan that did not include all interest which had accrued (or would have accrued) at the Note Rate through the end of the related Interest Period, including,
without limitation, such loss or expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain the LIBOR Loan hereunder, and (iii) the conversion (for any reason whatsoever, whether voluntary or
involuntary) of the Note Rate from the LIBOR Rate to the Static LIBOR Rate with respect to any portion of the outstanding principal amount of the Loan then bearing interest at the LIBOR Rate on a date other than the day immediately following the
last day of an Interest Period, including, without limitation, such loss or expenses arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain a LIBOR Loan hereunder (the amounts referred to in clauses
(i), (ii) and (iii) are herein referred to collectively as the “Breakage Costs”). This provision shall survive payment of the Note in full and the satisfaction of all other obligations of Maker under this Agreement and the other
Loan Documents. 
  
 (vi) Lender shall not be
entitled to claim compensation pursuant to this Section 2.3(f) for any Foreign Taxes, increased cost or reduction in amounts received or receivable hereunder, or any reduced rate of return, which was incurred or which accrued more than one hundred
eighty (180) days before the date Lender notified Maker of the change in law or other circumstance on which such claim of compensation is based and delivered to Maker a written statement setting forth in reasonable detail the basis for calculating
the additional amounts owed to Lender under this Section 2.3(f), which statement shall be conclusive and binding upon all parties hereto absent manifest error. 
  

(vii) Within fifteen (15) days after request by Lender (or at the time of any prepayment), Maker shall pay to Lender such amount or
amounts as will compensate Lender for any loss, cost, expense, penalty, claim or liability, including any loss incurred in obtaining, prepaying, liquidating or employing deposits or other funds from third parties and any loss of yield, as determined
by Lender in its judgment reasonably exercised incurred by it with respect to the Loan as a result of the payment or prepayment of any amount on a date other than the date such amount is required or permitted to be paid or prepaid; provided that
Lender delivers to Maker a certificate as to the amounts of such costs described herein, which certificate shall be conclusive in the absence of manifest error. Lender shall have no obligation to purchase, sell and/or match funds in connection with
the funding or maintaining of the Loan or any portion thereof. The obligations of Maker under this Section shall survive any termination of the Loan Documents and payment of the Note and shall not be waived by any delay by Lender in seeking such
compensation. 
  

 - 29 - 

 (viii) All payments made by Maker hereunder or under the other Loan Documents shall be
made irrespective of, and without any deduction for, any setoff, defense or counterclaims. 
  
 (ix) Except as otherwise provided in subsection (ii) above, remittances in payment of any part of the Loan in less than the required
amount in immediately available U.S. funds shall not, regardless of any receipt or credit issued therefor, constitute payment until the required amount is actually received by the holder hereof in immediately available U.S. funds and shall be made
and accepted subject to the condition that any check or draft may be handled for collection in accordance with the practices of the collecting bank or banks. 
  
 Section 2.4. PREPAYMENTS. 
  
 (a) Voluntary Prepayments. Except as otherwise provided herein, Maker shall not have the right to prepay the Loan in whole or in
part prior to the expiration of the Lockout Period. 
  
 (b) Intentionally Deleted. 
  
 (c) Payments After the Lockout Period. 
  
 (i) At any time after the expiration of the Lockout Period, other than during a Prepayment Lockout Window, Maker may prepay the Loan in whole but not in part (other than as expressly permitted pursuant to Section 2.5) at any time upon not
less than thirty (30) days prior written notice to Lender. Any such prepayment shall include the payment of the Prepayment Premium and all additional amounts required to be paid by Maker and all other amounts owing by Maker to Lender under this
Agreement and the other Loan Documents, including, without limitation, any Breakage Costs incurred by Lender in connection with the cancellation or termination of a LIBOR or swap contract entered into in connection with the Loan. In addition, any
such prepayment shall also include, simultaneously with such prepayment, a pro rata prepayment of the Mezzanine Loan. 
  
 (ii) All payments and prepayments of the Loan, whether voluntary, involuntary, at the Maturity Date or otherwise (but exclusive of
prepayments made pursuant to Section 2.4(d) hereof) shall include (i) payment by Maker to Lender of the Prepayment Premium and (ii) Maker shall pay to Lender a sum equal to the amount of interest which would have accrued under this Note on the
amount of such repayment or prepayment if such repayment or prepayment had occurred on the next Payment Date. For purposes of this Note, an involuntary prepayment shall be deemed to include, but not be limited to, a prepayment of the Loan in
connection with or following the Lender’s acceleration of the outstanding balance of the Loan, whether or not the Mortgage is satisfied or released by foreclosure (whether by power of sale or judicial proceeding), deed in lieu of foreclosure or
by other means, including, without limitation, repayment of the Loan by the Maker or any other Person pursuant to any statutory or common law right of redemption. 
  

 - 30 - 

 (d) Insurance and Condemnation Proceeds; Excess Interest. Notwithstanding any
other provision herein to the contrary, and provided no Default exists, Maker shall not be required to pay any Prepayment Premium in connection with any prepayment occurring solely as a result of (i) the application of Insurance Proceeds or
Condemnation Proceeds pursuant to the terms of the Loan Documents, or (ii) the application of any interest in excess of the maximum rate permitted by applicable law to the reduction of the Loan. 
  
 (e) Prepayments Prior to the Lockout Period. If,
during the Lockout Period, payment of all or any part of the Debt is tendered by Maker or otherwise recovered by Lender, such tender or recovery shall be (a) together with the Debt Service then due and (b) deemed a voluntary prepayment by Maker in
violation of the prohibition against prepayment set forth in this Section 2.4 and Maker shall pay, in addition to the Debt, (x) an amount equal to the Lockout Yield Maintenance Premium and (y) the accrued and unpaid interest calculated for the full
Interest Period in which such voluntary prepayment occurs. 
  
 (f) Application of Payments. All voluntary and involuntary prepayments on the Note shall be applied, to the extent thereof, to accrued but unpaid interest on the amount prepaid, to the remaining principal
amount, and any other sums due and unpaid to Lender in connection with the Loan, in such manner and order as Lender may elect in its sole and absolute discretion, including, but not limited to, application to principal installments in inverse order
of maturity. Following the occurrence of an Event of Default, any payment made on the Note shall be applied to accrued but unpaid interest, late charges, accrued fees, the unpaid principal amount of the Note, and any other sums due and unpaid to
Lender in connection with the Loan, in such manner and order as Lender may elect in its sole and absolute discretion. 
  
 Section 2.5. RELEASE OF PROPERTY. 
  
 Provided no Event of Default has occurred and is continuing, at any time after the expiration of the Lockout Period, Maker
may obtain the release of an Individual Property from the Lien of the Mortgage thereon (and related Loan Documents) and the release of Maker’s obligations under the Loan Documents with respect to such Individual Property (other than those
expressly stated to survive), but only upon the satisfaction of each of the following conditions: 
  
 (a) Maker shall provide Lender with at least twenty (20) days but no more than ninety (90) days prior written notice of its request to
obtain a release of the Individual Property; 
  
 (b) Borrower shall have sent a wire transfer to Lender of immediately available federal funds in an amount equal to the Release Price for the applicable Individual Property, together with (i) all accrued and unpaid interest on the amount of
principal being prepaid on the date of such prepayment, (ii) the Prepayment Premium, if applicable, and (iii) all other sums due under this Agreement, the Note or the other Loan Documents in connection with a partial prepayment including, without
limitation pursuant to Section 2.4(c) hereof; 
  
 (c) Maker shall have delivered evidence satisfactory to Lender that (i) Mezzanine Borrower has complied or will comply concurrently with the satisfaction of the conditions of this Section 2.5, with all of the terms and conditions set forth
in Section 2.5 of the Mezzanine Loan Agreement with respect to the proposed release; 
  

 - 31 - 

 (d) Maker shall submit to Lender, not less than ten (10) days prior to the date of such
release, a release of Lien (and related Loan Documents) for such Individual Property for execution by Lender. Such release shall be in a form appropriate in each State in which the Individual Property is located and shall contain standard
provisions, if any, protecting the rights of the releasing lender. In addition, Maker shall provide all other documentation Lender reasonably requires to be delivered by Maker in connection with such release, together with a certificate of Maker
certifying that (i) such documentation is in compliance with all applicable Legal Requirements, and (ii) the release will not impair or otherwise adversely affect the Liens, security interests and other rights of Lender under the Loan Documents not
being released (or as to the parties to the Loan Documents and Properties subject to the Loan Documents not being released); 
  
 (e) After giving effect to such release, Lender shall have determined that the Debt Service Coverage Ratio for the Properties then
remaining subject to the Liens of the Mortgages shall be at least equal to the Debt Service Coverage Ratio for all of the Properties encumbered by a Mortgage immediately prior to such release (including the Individual Property to be released) for
the twelve (12) full calendar months immediately preceding the release of the Individual Property; 
  
 (f) Lender shall have received evidence that the Individual Property to be released is being sold pursuant to an arms length transaction
to a third party purchaser which is not an Affiliate of Maker; and 
  
 (g) Lender shall have received payment of all Lender’s costs and expenses, including due diligence review costs and reasonable counsel fees and disbursements incurred in connection with the release of the
Individual Property from the Lien of the related Mortgage and the review and approval of the documents and information required to be delivered in connection therewith. 
  
 ARTICLE 3 
 CONDITIONS PRECEDENT 
  
 The obligation of Lender
to make the Loan hereunder is subject to the fulfillment by Borrower or waiver by Lender of the following conditions precedent no later than the Closing Date: 
  

Section 3.1. REPRESENTATIONS AND WARRANTIES; COMPLIANCE WITH
CONDITIONS. 
  
 The representations and
warranties of Borrower contained in this Agreement and the other Loan Documents shall be true and correct in all material respects on and as of the Closing Date with the same effect as if made on and as of such date, and Lender shall have determined
that no Default or an Event of Default shall have occurred and be continuing nor will any Default or Event of Default occur immediately following the Closing Date; and Borrower shall be in compliance in all material respects with all terms and
conditions set forth in this Agreement and in each other Loan Document on its part to be observed or performed. 
  

 - 32 - 

 Section 3.2. DELIVERY OF LOAN DOCUMENTS;
TITLE INSURANCE; REPORTS; LEASES. 
  
 (a) Mortgages, Loan Agreement and Note. Lender shall have received from Borrower a fully executed and acknowledged counterpart of the Mortgages and
evidence that counterparts of the Mortgages and Uniform Commercial Code financing statements have been delivered to the title company for recording, in the reasonable judgment of Lender, so as to effectively create upon such recording valid and
enforceable Liens upon the Properties, of the requisite priority, in favor of Lender (or such other trustee as may be required or desired under local law), subject only to the Permitted Encumbrances and such other Liens as are permitted pursuant to
the Loan Documents. Lender shall have also received from Borrower fully executed counterparts of this Agreement, the Note and Assignment of Management Agreement and all other Loan Documents. Borrower hereby authorizes Lender to file a financing
statement or statements under the UCC in connection with the Properties in the form required to properly perfect Lender’s security interest therein. 
  
 (b) Title Insurance. Lender shall have received a Title Insurance Policy issued by a Title Company and dated as of the Closing Date acceptable to
Lender. Such Title Insurance Policy shall (i) provide coverage in the amount of the Loan, (ii) insure Lender that the Mortgages create a valid lien on the Properties of the requisite priority, free and clear of all exceptions from coverage other
than Permitted Encumbrances and standard exceptions and exclusions from coverage (as modified by the terms of any endorsements), (iii) contain such endorsements and affirmative coverages as Lender may reasonably request, and (iv) name Lender as the
insured. The Title Insurance Policy shall be assignable. Lender also shall have received evidence that all premiums in respect of such Title Insurance Policy have been paid (or will be paid with a portion of the Loan proceeds). 
  
 (c) Survey. Lender shall have received a current title survey for each
Individual Property, certified to the title company and Lender and their successors and assigns, in form and content reasonably satisfactory to Lender and prepared by a professional and properly licensed land surveyor satisfactory to Lender in
accordance with the 1999 Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys. The survey shall include the following additional items from the list of “Optional Survey Responsibilities and Specifications” (Table A): 2, 3,
4, 6, 7(a), 7(b)(i), 7(c), 8, 9, 10 and 11. Such survey shall reflect the same legal description contained in the Title Insurance Policy referred to in subsection (b) above and shall include, among other things, a metes and bounds description of the
real property comprising part of such Individual Property reasonably satisfactory to Lender. The surveyor’s seal shall be affixed to the survey and the surveyor shall provide a certification for each survey in form and substance reasonably
acceptable to Lender. 
  
 (d) Insurance. Lender shall have
received copies of the Policies required hereunder (or certificates of such policies evidencing the insurance coverage required hereunder), satisfactory to Lender in its sole discretion, and evidence that all Insurance Premiums payable for the
existing policy period shall have been paid on or before the Closing Date. 
  
 (e) Environmental Reports. Lender shall have received an Environmental Report in respect of each Individual Property satisfactory to Lender. 
  

 - 33 - 

 (f) Zoning/Building Code. Lender shall have received evidence of compliance with zoning and
building ordinances and codes, including, without limitation, required certificates of occupancy, reasonably acceptable to Lender. 
  
 (g) Encumbrances. Borrower shall have taken or caused to be taken such actions in such a manner so that Lender has valid and perfected first Liens
as of the Closing Date on the Properties, subject only to applicable Permitted Encumbrances and such other Liens as are permitted pursuant to the Loan Documents, and Lender shall have received satisfactory evidence thereof. 
  
 (h) Lien Searches. Borrower shall have delivered to Lender certified
search results pertaining to the Borrower, Borrower Principal and such other Persons or any SPE Component Entity as reasonably required by Lender for state and federal tax liens, bankruptcy, judgment, litigation and state and local UCC filings.

  
 Section 3.3. INTENTIONALLY
DELETED. 
  
 Section 3.4.
ORGANIZATIONAL DOCUMENTS. 
  
 On or before the Closing Date, Borrower shall deliver or cause to be delivered to Lender (a) copies certified by Borrower of all organizational documentation related to Borrower, each SPE Component Entity and Borrower Principal which must
be acceptable to Lender in its sole discretion, and (b) such other evidence of the formation, structure, existence, good standing and/or qualification to do business of the Borrower, each SPE Component Entity and Borrower Principal, as Lender may
request in its sole discretion, including, without limitation, good standing or existence certificates, qualifications to do business in the appropriate jurisdictions, resolutions authorizing the entering into of the Loan and incumbency certificates
as may be requested by Lender. 
  
 Section 3.5.
OPINIONS OF BORROWER’S COUNSEL. 
  
 Lender shall have received opinions of Borrower’s counsel (a) with respect to non-consolidation issues and (b) with respect to due execution,
authority, enforceability of the Loan Documents, the Operating Lease and Operating Lessee Documents and such other matters as Lender may require, all such and such other matters as Lender may require, all such opinions in form, scope and substance
satisfactory to Lender and Lender’s counsel in their sole discretion. 
  
 Section 3.6. ANNUAL BUDGET. 
  
 Borrower shall have delivered, and Lender shall have approved, the Annual Budget for the current fiscal year, a copy of which is attached as Exhibit F
hereto. 
  
 Section 3.7. TAXES
AND OTHER CHARGES. 
  
 Borrower shall have paid all Taxes and Other Charges which are due and payable as of the Closing Date (including any in arrears) relating to the Properties, which amounts may be funded with proceeds of the Loan. 
  

 - 34 - 

 Section 3.8. COMPLETION OF PROCEEDINGS. 

 
 All corporate and other proceedings taken or to be taken in connection
with the transactions contemplated by this Agreement and other Loan Documents and all documents incidental thereto shall be satisfactory in form and substance to Lender, and Lender shall have received all such counterpart originals or certified
copies of such documents as Lender may reasonably request. 
  
 Section 3.9. PAYMENTS. 
  
 All
payments, deposits or escrows required to be made or established by Borrower under this Agreement, the Note and the other Loan Documents on or before the Closing Date shall have been paid. 
  
 Section 3.10. TRANSACTION COSTS.

  
 Except as otherwise expressly provided herein, Borrower shall
have paid or reimbursed, or made arrangements satisfactory to Lender for such payment or reimbursement, Lender for all out of pocket expenses in connection with the underwriting, negotiation, Securitization and closing of the Loan, including title
insurance premiums and other title company charges; recording, registration, filing and similar fees, taxes and charges; transfer, mortgage, deed, stamp or documentary taxes or similar fees or charges; costs of third-party reports, including without
limitation, environmental studies, credit reports, seismic reports, engineer’s reports, appraisals and surveys; underwriting and origination expenses; Securitization expenses; and all actual, reasonable legal fees and expenses charged by
counsel to Lender. 
  
 Section 3.11. NO
MATERIAL ADVERSE CHANGE. 
  
 There shall have been no material adverse change in the financial condition or business condition of the Properties, Borrower, Borrower Principal, any SPE Component Entity, Manager or any other person or party
contributing to the operating income and operations of the Properties since the date of the most recent financial statements and/or other information delivered to Lender. The income and expenses of the Properties, the occupancy and leases thereof,
and all other features of the transaction shall be as represented to Lender without material adverse change. Neither Borrower, Borrower Principal, any SPE Component Entity or Affiliated Manager shall be the subject of any bankruptcy, reorganization,
or insolvency proceeding. 
  
 Section 3.12.
LEASES AND RENT ROLL. 
  
 Lender shall have received copies of all Leases affecting the Properties, which shall be satisfactory in form and substance to Lender. Lender shall have received a current certified rent roll of the Properties,
reasonably satisfactory in form and substance to Lender. 
  

 - 35 - 

 Section 3.13. TENANT ESTOPPELS. 
  
 Borrower shall have delivered to Lender an executed tenant estoppel letter,
which shall be in form and substance satisfactory to Lender, from each Tenant under a Major Lease. 
  
 Section 3.14. REA ESTOPPELS. 
  
 Borrower shall have delivered to Lender an executed REA estoppel letter, which shall be in form and substance satisfactory to Lender, from each party to
any REA for each Individual Property. 
  
 Section 3.15.
SUBORDINATION AND ATTORNMENT. 
  
 Borrower shall have delivered to Lender executed instruments acceptable to Lender subordinating to the Mortgages all of the Leases affecting the Properties previously designated by Lender. 
  
 Section 3.16. TAX LOT. 
  
 Lender shall have received evidence that each Individual Property constitutes
one (1) or more separate tax lots, which evidence shall be reasonably satisfactory in form and substance to Lender and which may take the form of a separate tax lot endorsement to the Title Insurance Policy. 
  
 Section 3.17. PHYSICAL CONDITIONS
REPORT. 
  
 Lender shall have received a
Physical Conditions Report with respect to each Individual Property, which report shall be reasonably satisfactory in form and substance to Lender. 
  
 Section 3.18. MANAGEMENT AGREEMENT/OPERATING LEASE. 
  
 Lender shall have received a certified copy of (i) the Management Agreement
with respect to each Individual Property and (ii) the Operating Lease, which shall be satisfactory in form and substance to Lender. 
  
 Section 3.19. APPRAISAL. 
  
 Lender shall have received an appraisal of each Individual Property, which shall be satisfactory in form and substance to Lender. 
  
 Section 3.20. FINANCIAL STATEMENTS.

  
 Lender shall have received financial statements and related
information in form and substance satisfactory to Lender and in compliance with any Legal Requirements promulgated by the Securities and Exchange Commission, including, without limitation, a balance sheet for Borrower an income and expense statement
and statement of cash flows with respect to Borrower and an operating statement with respect to each Individual Property for the year-to-date 2004, 2003, 2002, and 2001, audited (except with respect to the year-to-date 2004, through 

  

 - 36 - 

 
April 30, 2004 and covering the preceding twelve (12) months year to date and through May 31, 2004 and covering the preceding twelve (12) months year to
date) by an Acceptable Accountant and together with (x) an unqualified opinion of such Acceptable Accountant that such statements have been prepared in accordance with GAAP applied on a consistent basis and (y) a letter from such Acceptable
Accountant consenting to the utilization and/or incorporation by reference of such financial statements and opinion in a Securitization involving the Loan. 
  
 Section 3.21. INTENTIONALLY DELETED. 
  
 Section 3.22. FURTHER DOCUMENTS. 
  
 Lender or its counsel shall have received such other and further approvals,
opinions, documents and information as Lender or its counsel may have reasonably requested including the Loan Documents in form and substance reasonably satisfactory to Lender and its counsel. 
  
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES 
  
 Borrower and, where specifically indicated, each Borrower Principal represents and warrants to Lender as of the Closing Date that: 
  
 Section 4.1. ORGANIZATION. 
  
 Borrower and each Borrower Principal (when not an individual) (a) has been duly organized and is validly existing and in
good standing with requisite power and authority to own its properties and to transact the businesses in which it is now engaged, (b) is duly qualified to do business and is in good standing in each jurisdiction where it is required to be so
qualified in connection with its properties, businesses and operations, (c) possesses all rights, licenses, permits and authorizations, governmental or otherwise, necessary to entitle it to own its properties and to transact the businesses in which
it is now engaged, and the sole business of Borrower is the ownership, management and operation of the Properties, and (d) in the case of Borrower, has full power, authority and legal right to mortgage, grant, bargain, sell, pledge, assign, warrant,
transfer and convey the Properties pursuant to the terms of the Loan Documents, and in the case of Borrower and each Borrower Principal, has full power, authority and legal right to keep and observe all of the terms of the Loan Documents to which it
is a party. Borrower and each Borrower Principal represent and warrant that the chart attached hereto as Exhibit B sets forth an accurate listing of the direct and indirect owners of the equity interests in Borrower, each SPE Component Entity (if
any) and each Borrower Principal (when not an individual). 
  

 - 37 - 

 Section 4.2. STATUS OF MAKER AND
MARYLAND GUARANTOR. 
  
 (a) Makers’s exact legal name is correctly set forth on the first page of this Agreement. Maker is an organization of the type specified on the first page of this Agreement. Maker is organized under the laws of the state of Delaware.
Maker’s principal place of business and chief executive office, and the place where Maker keeps its books and records, including recorded data of any kind or nature, regardless of the medium of recording, including software, writings, plans,
specifications and schematics, has been for the preceding four months (or, if less, the entire period of the existence of Maker) the address of Maker set forth on the first page of this Agreement. Maker’s organizational identification number,
if any, assigned by the state of organization is set forth on Exhibit A. 
  
 (b) Maryland Guarantor’s exact legal name is correctly set forth on the first page of this Agreement. Maryland Guarantor is an organization of the type specified on page one of this Agreement. Maryland Guarantor
is incorporated in or organized under the laws of the state of Delaware. Maryland Guarantor’s principal place of business and chief executive office, and the place where Maryland Guarantor keeps its books and records, including recorded data of
any kind or nature, regardless of the medium of recording, including software, writings, plans, specifications and schematics, has been for the preceding four months (or, if less, the entire period of the existence of Maryland Guarantor) the address
of Maryland Guarantor set forth on the first page of this Agreement. Maryland Guarantor’s organizational identification number, if any, assigned by the state of incorporation or organization is
                                . 
  
 Section 4.3. VALIDITY OF
DOCUMENTS. 
  
 Borrower and each Borrower
Principal have taken all necessary action to authorize the execution, delivery and performance of this Agreement and the other Loan Documents to which they are parties. This Agreement and such other Loan Documents have been duly executed and
delivered by or on behalf of Borrower and each Borrower Principal and constitute the legal, valid and binding obligations of Borrower and each Borrower Principal enforceable against Borrower and each Borrower Principal in accordance with their
respective terms, subject only to applicable bankruptcy, insolvency and similar laws affecting rights of creditors generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law). 
  
 Section 4.4.
NO CONFLICTS. 
  
 The
execution, delivery and performance of this Agreement and the other Loan Documents by Borrower and each Borrower Principal will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, or result in
the creation or imposition of any lien, charge or encumbrance (other than pursuant to the Loan Documents) upon any of the property or assets of Borrower or any Borrower Principal pursuant to the terms of any agreement or instrument to which Borrower
or any Borrower Principal is a party, including without limitation, the Franchise Agreement, or by which any of Borrower’s or Borrower Principal’s property or assets is subject, nor will such action result in any violation of the
provisions of any statute or any order, rule or regulation of any Governmental Authority 

  

 - 38 - 

 
having jurisdiction over Borrower or any Borrower Principal or any of Borrower’s or Borrower Principal’s properties or assets, and any consent,
approval, authorization, order, registration or qualification of or with any Governmental Authority required for the execution, delivery and performance by Borrower or Borrower Principal of this Agreement or any of the other Loan Documents has been
obtained and is in full force and effect. 
  
 Section 4.5.
LITIGATION. 
  
 There are no actions, suits
or proceedings at law or in equity by or before any Governmental Authority or other agency now pending or, to Borrower’s or Borrower Principal’s knowledge, threatened against or affecting Borrower any Borrower Principal, Manager or any
Individual Property respectively, which actions, suits or proceedings, if determined against Borrower, any Borrower Principal, Manager or any Individual Property, would materially adversely affect the condition (financial or otherwise) or business
of Borrower or any Borrower Principal or the condition or ownership of such Individual Property. 
  
 Section 4.6. AGREEMENTS. 
  
 Borrower is not a party to any agreement or instrument or subject to any restriction which would materially and adversely affect Borrower or any
Individual Property, or Borrower’s business, properties or assets, operations or condition, financial or otherwise. Borrower is not in default in any material respect in the performance, observance or fulfillment of any of the obligations,
covenants or conditions contained in any agreement or instrument to which it is a party or by which Borrower, Operating Lessee or any Individual Property is bound. Borrower has no material financial obligation under any agreement or instrument to
which Borrower is a party or by which Borrower, or any Individual Property is otherwise bound, other than (a) obligations incurred in the ordinary course of the ownership and operation of such Individual Property and (b) obligations under the Loan
Documents. 
  
 Section 4.7. SOLVENCY.

  
 Borrower, and each Borrower Principal have (a) not entered
into the transaction or executed the Note, this Agreement or any other Loan Documents with the actual intent to hinder, delay or defraud any creditor and (b) received reasonably equivalent value in exchange for their obligations under such Loan
Documents. Giving effect to the Loan, the fair saleable value of the assets of Borrower, Operating Lessee and each Borrower Principal exceeds and will, immediately following the making of the Loan, exceed the total liabilities of Borrower, Operating
Lessee and each Borrower Principal, including, without limitation, subordinated, unliquidated, disputed and contingent liabilities. No petition in bankruptcy has been filed against Borrower, Operating Lessee, any Borrower Principal, any SPE
Component Entity (if any) or Affiliated Manager in the last ten (10) years, and neither Borrower, Operating Lessee, or any Borrower Principal, any SPE Component Entity (if any) or Affiliated Manager in the last ten (10) years has made an assignment
for the benefit of creditors or taken advantage of any Creditors Rights Laws. Neither Borrower, Operating Lessee, or any Borrower Principal, any SPE Component Entity (if any) or Affiliated Manager is contemplating either the filing of a petition by
it under any Creditors Rights Laws or the liquidation of all or a major portion of Borrower’s or Operating Lessee’s assets or property, and Borrower has no knowledge of any Person 

  

 - 39 - 

 
contemplating the filing of any such petition against Borrower, Operating Lessee or any Borrower Principal, any SPE Component Entity (if any) or Affiliated
Manager. 
  
 Section 4.8. FULL
AND ACCURATE DISCLOSURE. 
  
 No statement of fact made by or on behalf of Borrower, Operating Lessee or any Borrower Principal in this Agreement or in any of the other Loan Documents or in any other document or certificate delivered by or on
behalf of Borrower, Operating Lessee or any Borrower Principal contains any untrue statement of a material fact or omits to state any material fact necessary to make statements contained herein or therein not misleading. There is no material fact
presently known to Borrower, Operating Lessee or any Borrower Principal which has not been disclosed to Lender which adversely affects, nor as far as Borrower, Operating Lessee or any Borrower Principal can reasonably foresee, is reasonably likely
to adversely affect, the Properties or the business, operations or condition (financial or otherwise) of Borrower, Operating Lessee or any Borrower Principal. 
  

Section 4.9. NO PLAN ASSETS. 
  
 Borrower is not an “employee benefit plan,” as defined in Section 3(3) of ERISA, subject to Title I of ERISA, and
none of the assets of Borrower constitute or will constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101. In addition, (a) Borrower is not a “governmental plan” within the meaning of
Section 3(32) of ERISA and (b) transactions by or with Borrower are not subject to state statutes regulating investment of, and fiduciary obligations with respect to, governmental plans similar to the provisions of Section 406 of ERISA or Section
4975 of the Internal Revenue Code currently in effect, which prohibit or otherwise restrict the transactions contemplated by this Agreement. 
  
 Section 4.10. NOT A FOREIGN PERSON. 
  
 Neither Borrower nor Borrower Principal is a “foreign person” within the meaning of §1445(f)(3) of the
Internal Revenue Code. 
  
 Section 4.11.
ENFORCEABILITY. 
  
 The Loan Documents are
not subject to any right of rescission, set-off, counterclaim or defense by Borrower, including the defense of usury, nor would the operation of any of the terms of the Loan Documents, or the exercise of any right thereunder, render the Loan
Documents unenforceable, and neither Borrower nor Borrower Principal has asserted any right of rescission, set-off, counterclaim or defense with respect thereto. No Default or Event of Default exists under or with respect to any Loan Document.

  
 Section 4.12. BUSINESS
PURPOSES. 
  
 The Loan is solely for the
business purpose of Borrower, and is not for personal, family, household, or agricultural purposes. 
  

 - 40 - 

 Section 4.13. COMPLIANCE. 
  
 Borrower and each Individual Property, and the use and operation thereof,
comply in all material respects with all Legal Requirements, including, without limitation, building and zoning ordinances and codes and the Americans with Disabilities Act. To Borrower’s knowledge, Borrower is not in default or violation of
any order, writ, injunction, decree or demand of any Governmental Authority and Borrower has received no written notice of any such default or violation. There has not been committed by Borrower or, to Borrower’s knowledge, any other Person in
occupancy of or involved with the operation or use of any Individual Property any act or omission affording any Governmental Authority the right of forfeiture as against such Individual Property or any material part thereof or any monies paid in
performance of Borrower’s obligations under any of the Loan Documents. 
  
 Section 4.14. FINANCIAL INFORMATION. 
  
 All financial data, including, without limitation, the balance sheets, statements of cash flow, statements of income and operating expense and rent rolls,
that have been delivered to Lender by or on behalf of Borrower or any Borrower Principal in respect of Borrower, any Borrower Principal and/or each Individual Property (a) are true, complete and correct in all material respects, (b) accurately
represent the financial condition of Borrower, Borrower Principal or the Properties, as applicable, as of the date of such reports, and (c) to the extent prepared or audited by an independent certified public accounting firm, have been prepared in
accordance with GAAP throughout the periods covered, except as disclosed therein. Borrower does not have any contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any
unfavorable commitments that are known to Borrower and reasonably likely to have a material adverse effect on any Individual Property or the current and/or intended operation thereof, except as referred to or reflected in said financial statements.
Since the date of such financial statements, there has been no materially adverse change in the financial condition, operations or business of Borrower, or Borrower Principal from that set forth in said financial statements. 
  
 Section 4.15. CONDEMNATION. 
  
 No Condemnation or other proceeding has been commenced or, to Borrower’s
best knowledge, is threatened or contemplated with respect to all or any portion of the Properties or for the relocation of roadways providing access to any Individual Property. 
  
 Section 4.16. UTILITIES AND PUBLIC ACCESS;
PARKING. 
  
 Each Individual Property has
adequate rights of access to public ways and is served by water, sewer, sanitary sewer and storm drain facilities adequate to service such Individual Property for full utilization of such Individual Property for its intended uses. All public
utilities necessary to the full use and enjoyment of each Individual Property as currently used and enjoyed are located either in the public right-of-way abutting such Individual Property (which are connected so as to serve the Individual Property
without passing over other property) or in recorded easements serving the Individual Property and such easements are set forth in and insured by the Title Insurance Policy. All roads necessary for the use of the Individual Property for its current
purposes have been completed and dedicated to public use and accepted by all 

  

 - 41 - 

 
Governmental Authorities. Each Individual Property has, or is served by, parking to the extent required to comply with all Legal Requirements. 
  
 Section 4.17. SEPARATE LOTS. 

 
 Each Individual Property is assessed for real estate tax purposes as one
or more wholly independent tax lot or lots, separate from any adjoining land or improvements not constituting a part of such lot or lots, and no other land or improvements is assessed and taxed together with such Individual Property or any portion
thereof. 
  
 Section 4.18. ASSESSMENTS.

  
 To Borrower’s knowledge after due inquiry, there are no
pending or proposed special or other assessments for public improvements or otherwise affecting any Individual Property, nor are there any contemplated improvements to such Individual Property that may result in such special or other assessments.

  
 Section 4.19. INSURANCE. 
  
 Borrower has obtained and has delivered to Lender certified copies of all
Policies or, to the extent such Policies are not available as of the Closing Date, certificates of insurance with respect to all such Policies reflecting the insurance coverages, amounts and other requirements set forth in this Agreement. No claims
have been made under any of the Policies, and to Borrower’s knowledge, no Person, including Borrower, has done, by act or omission, anything which would impair the coverage of any of the Policies. 
  
 Section 4.20. USE OF
PROPERTY. 
  
 Each Individual Property is used
exclusively for hotel purposes and other appurtenant and related uses. 
  
 Section 4.21. CERTIFICATE OF OCCUPANCY; LICENSES. 
  
 All certifications, permits, licenses and approvals, including, without limitation, certificates of completion or occupancy and any applicable liquor
license required for the legal use, occupancy and operation of each Individual Property for the purpose intended herein, have been obtained and are valid and in full force and effect. Borrower shall keep and maintain all licenses necessary for the
operation of each Individual Property for the purpose intended herein. The use being made of each Individual Property is in conformity with the certificate of occupancy and any permits or licenses issued for such Individual Property. 
  
 Section 4.22. FLOOD ZONE. 
  
 None of the Improvements on any Individual Property are located in an area
identified by the Federal Emergency Management Agency as an area having special flood hazards, or, if any portion of the Improvements is located within such area, Borrower has obtained the insurance prescribed in Section 8.1(a)(i). 
  

 - 42 - 

 Section 4.23. PHYSICAL CONDITION. 
  
 To Borrower’s knowledge after due inquiry, the Properties, including,
without limitation, all buildings, improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment, elevators, exterior sidings and doors,
landscaping, irrigation systems and all structural components, are in good condition, order and repair in all material respects. To Borrower’s knowledge after due inquiry, there exists no structural or other material defects or damages in any
Individual Property, as a result of a Casualty or otherwise, and whether latent or otherwise. Borrower has not received notice from any insurance company or bonding company of any defects or inadequacies in any Individual Property, or any part
thereof, which would adversely affect the insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond. 
  
 Section 4.24. BOUNDARIES. 
  
 (a) None of the Improvements which were included in
determining the appraised value of any Individual Property lie outside the boundaries and building restriction lines of such Individual Property to any material extent, and (b) no improvements on adjoining properties encroach upon such Individual
Property and no easements or other encumbrances upon such Individual Property encroach upon any of the Improvements so as to materially affect the value or marketability of such Individual Property. 
  
 Section 4.25. LEASES AND RENT
ROLL. 
  
 Borrower has delivered to Lender a
true, correct and complete rent rolls for the Properties (collectively, a “Rent Roll”) which includes all Leases and the Operating Lease affecting the Properties (including schedules for all executed Leases for Tenants not yet in
occupancy or under which the rent commencement date has not occurred). Except as set forth in the Rent Roll (as same has been updated by written notice thereof to Lender) and estoppel certificates delivered to Lender on or prior to the Closing Date:
(a) each Lease and Operating Lease is in full force and effect; (b) the premises demised under the Leases have been completed and the Tenants under the Leases and Operating Lease have accepted possession of and are in occupancy of all of their
respective demised premises; (c) the Tenants under the Leases and Operating Lease have commenced the payment of rent under the Leases, there are no offsets, claims or defenses to the enforcement thereof, and Borrower has no monetary obligations to
any Tenant under any Lease or Operating Lease; (d) all Rents due and payable under the Leases and Operating Lease have been paid and no portion thereof has been paid for any period more than thirty (30) days in advance; (e) the rent payable under
each Lease and Operating Lease is the amount of fixed rent set forth in the Rent Roll, and there is no claim or basis for a claim by the Tenant thereunder for an offset or adjustment to the rent; (f) no Tenant has made any written claim of a
material default against the landlord under any Lease or Operating Lease which remains outstanding nor has Borrower or Manager received, by telephonic, in-person, e-mail or other communication, any notice of a material default under any Lease or
Operating Lease; (g) to Borrower’s knowledge there is no present material default by the Tenant under any Lease or Operating Lease; (h) all security deposits under the Leases have been collected by Borrower; (i) Borrower is the sole owner of
the entire landlord’s interest in each Lease; (j) each Lease and Operating Lease are the 

  

 - 43 - 

 
valid, binding and enforceable obligations of Borrower and the applicable Tenant thereunder and there are no material agreements with the Tenants under the
Leases other than as expressly set forth in the Leases; (k) no Person has any possessory interest in, or right to occupy, any Individual Property or any portion thereof except under the terms of a Lease or Operating Lease; (l) none of the Leases or
Operating Lease contains any option or offer to purchase or right of first refusal to purchase the Properties or any part thereof; (m) neither the Leases or Operating Lease nor the Rents have been assigned, pledged or hypothecated except to Lender,
and no other Person has any interest therein except the Tenants thereunder; and (n) no conditions exist which now give any Tenant or party the right to “go dark” pursuant to the provision of its Lease and/or the REA. 
  
 Section 4.26. FILING AND
RECORDING TAXES. 
  
 All
mortgage, mortgage recording, stamp, intangible or other similar tax required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the execution, delivery, recordation, filing, registration, perfection
or enforcement of any of the Loan Documents, including, without limitation, the Mortgages, have been paid or will be paid, and, under current Legal Requirements, the Mortgages are enforceable in accordance with its terms by Lender (or any subsequent
holder of the Loan). 
  
 Section 4.27.
MANAGEMENT AGREEMENT/OPERATING LEASE. 
  
 (a) The Management Agreement is in full force and effect and there is no default thereunder by any party thereto and, to Borrower’s
knowledge, no event has occurred that, with the passage of time and/or the giving of notice would constitute a default thereunder. No management fees under the Management Agreement are accrued and unpaid. 
  
 (b) The Operating Lease is in full force and effect and
there is no default thereunder by any party thereto and no event has occurred that, with the passage of time and/or the giving of notice would constitute a default thereunder. 
  
 Section 4.28. ILLEGAL ACTIVITY. 
  
 No portion of the Properties have been or will be purchased by Borrower with
proceeds of any illegal activity, and no part of the proceeds of the Loan will be used in connection with any illegal activity. 
  
 Section 4.29. CONSTRUCTION EXPENSES. 
  
 All costs and expenses of any and all labor, materials, supplies and equipment used in the construction maintenance or
repair of the Improvements have been paid in full or will be paid in full when due. To Borrower’s knowledge after due inquiry, there are no claims for payment for work, labor or materials affecting the Properties which are or may become a lien
prior to, or of equal priority with, the Liens created by the Loan Documents. 
  

 - 44 - 

 Section 4.30. PERSONAL PROPERTY. 
  
 Borrower has paid in full for, and is the owner of, all Personal Property
(other than tenants’ property) used in connection with the operation of the Properties, free and clear of any and all security interests, liens or encumbrances, except for Permitted Encumbrances and the Lien and security interest created by the
Loan Documents. 
  
 Section 4.31. TAXES.

  
 Borrower and Borrower Principal have each filed all federal,
state, county, municipal, and city income, personal property and other tax returns required to have been filed by them and have paid all taxes and related liabilities which have become due pursuant to such returns or pursuant to any assessments
received by them. Neither Borrower nor Borrower Principal knows of any basis for any additional assessment in respect of any such taxes and related liabilities for prior years. 
  
 Section 4.32. PERMITTED ENCUMBRANCES. 
  
 None of the Permitted Encumbrances, individually or in the aggregate,
materially interferes with the benefits of the security intended to be provided by the Loan Documents, materially and adversely affects the value of any Individual Property, impairs the use or the operation of any Individual Property or impairs
Borrower’s ability to pay its obligations in a timely manner. 
  
 Section 4.33. FEDERAL RESERVE REGULATIONS. 
  
 Borrower will use the proceeds of the Loan for the purposes set forth in Section 2.1(d) hereof and not for any illegal activity. No part of the proceeds
of the Loan will be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose which would be inconsistent with
such Regulation U or any other Regulations of such Board of Governors, or for any purposes prohibited by Legal Requirements or prohibited by the terms and conditions of this Agreement or the other Loan Documents. 
  
 Section 4.34. INVESTMENT COMPANY
ACT. 
  
 Borrower is not (a) an
“investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding company” or a “subsidiary company” of a
“holding company” or an “affiliate” of either a “holding company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as amended; or (c) subject to any other federal
or state law or regulation which purports to restrict or regulate its ability to borrow money. 
  
 Section 4.35. RECIPROCAL EASEMENT AGREEMENTS. 
  
 (a) Neither Borrower, nor any other party is currently in default (nor has any notice been given or received with respect to an alleged or
current default) under any of the terms and conditions of the REA, and the REA remains unmodified and in full force and effect; 
  

 - 45 - 

 (b) All easements granted pursuant to the REA which were to have survived the site
preparation and completion of construction (to the extent that the same has been completed), remain in full force and effect and have not been released, terminated, extinguished or discharged by agreement or otherwise; 
  
 (c) All sums due and owing by Borrower to the other parties
to the REA (or by the other parties to the REA to the Borrower) pursuant to the terms of the REA, including without limitation, all sums, charges, fees, assessments, costs, and expenses in connection with any taxes, site preparation and
construction, non-shareholder contributions, and common area and other property management activities have been paid, are current, and no lien has attached on any Individual Property (or threat thereof been made) for failure to pay any of the
foregoing; 
  
 (d) The terms, conditions,
covenants, uses and restrictions contained in the REA do not conflict in any manner with any terms, conditions, covenants, uses and restrictions contained in any Lease or in any agreement between Borrower and occupant of any peripheral parcel,
including, without limitation, conditions and restrictions with respect to kiosk placement, tenant restrictions (type, location or exclusivity), sale of certain goods or services, and/or other use restrictions; and 
  
 (e) The terms, conditions, covenants, uses and restrictions
contained in each Lease do not conflict in any manner with any terms, conditions, covenants, uses and restrictions contained in the REA, any other Lease or in any agreement between Borrower and occupant of any peripheral parcel, including without
limitation, conditions and restrictions with respect to kiosk placement, tenant restrictions (type, location or exclusivity), sale of certain goods or services, and/or other use restrictions. 
  
 Section 4.36. NO CHANGE IN
FACTS OR CIRCUMSTANCES; DISCLOSURE. 
  
 All information submitted by or on behalf of Borrower to Lender and in all financial statements, rent rolls, reports, certificates and other documents
submitted in connection with the Loan or in satisfaction of the terms thereof and all statements of fact made by Borrower in this Agreement or in any other Loan Document, are accurate, complete and correct in all material respects. There has been no
material adverse change in any condition, fact, circumstance or event that would make any such information inaccurate, incomplete or otherwise misleading in any material respect or that otherwise materially and adversely affects or is reasonably
likely to materially and adversely affect any Individual Property or the business operations or the financial condition of Borrower. Borrower has disclosed to Lender all material facts and has not failed to disclose any material fact that could
cause any representation or warranty made herein to be materially misleading. 
  
 Section 4.37. INTELLECTUAL PROPERTY. 
  
 All trademarks, trade names and service marks necessary to the business of Borrower as presently conducted or as Borrower contemplates conducting its
business are in good standing and, to the extent of Borrower’s actual knowledge, uncontested. Borrower has not infringed, is not infringing, and has not received notice of infringement with respect to asserted trademarks, 

  

 - 46 - 

 
trade names and service marks of others. To Borrower’s knowledge, there is no infringement by others of trademarks, trade names and service marks of
Borrower. 
  
 Section 4.38.
SURVEY. 
  
 The Survey for
each Individual Property delivered to Lender in connection with this Agreement has been prepared in accordance with the provisions of Section 3.2(c) hereof, and to the knowledge of Borrower does not fail to reflect any material matter affecting such
Individual Property or the title thereto. 
  
 Section 4.39.
EMBARGOED PERSON. 
  
 As of the date hereof, (a) none of the funds or other assets of Borrower and Borrower Principal constitute property of, or are beneficially owned, directly or indirectly, by any person, entity or government subject to trade restrictions
under U.S. law, including but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated
thereunder with the result that the investment in Borrower or Borrower Principal, as applicable (whether directly or indirectly), is prohibited by law or the Loan made by Lender is in violation of law (“Embargoed Person”); (b) no
Embargoed Person has any interest of any nature whatsoever in Borrower or Borrower Principal, as applicable, with the result that the investment in Borrower or Borrower Principal, as applicable (whether directly or indirectly), is prohibited by law
or the Loan is in violation of law; and (c) none of the funds of Borrower or Borrower Principal, as applicable, have been derived from any unlawful activity with the result that the investment in Borrower or Borrower Principal, as applicable
(whether directly or indirectly), is prohibited by law or the Loan is in violation of law. 
  
 Section 4.40. PATRIOT ACT. 
  
 All capitalized words and phrases and all defined terms used in the USA Patriot Act of 2001, 107 Public Law 56 (October 26, 2001) and in other statutes
and all orders, rules and regulations of the United States government and its various executive departments, agencies and offices related to the subject matter of the Patriot Act, including Executive Order 13224 effective September 24, 2001
(collectively referred to in this Section only as the “Patriot Act”) and are incorporated into this Section. Each of Borrower, and Borrower Principal hereby represents and warrants that Borrower, and Borrower Principal and each and
every Person affiliated with Borrower, or Borrower Principal or that to Borrower’s knowledge has an economic interest in Borrower or Operating Lessee, or to Borrower’s knowledge, that has or will have an interest in the transaction
contemplated by this Agreement or in the Property or will participate, in any manner whatsoever, in the Loan, is: (i) not a “blocked” person listed in the Annex to Executive Order Nos. 12947, 13099 and 13224 and all modifications thereto
or thereof (as used in this Section only, the “Annex”); (ii) in full compliance with the requirements of the Patriot Act and all other requirements contained in the rules and regulations of the Office of Foreign Assets Control,
Department of the Treasury (as used in this Section only, “OFAC”); (iii) operated under policies, procedures and practices, if any, that are in compliance with the Patriot Act and available to Lender for Lender’s review and
inspection during normal business hours and upon reasonable prior notice; (iv) not in receipt of any notice from the Secretary of State or the 

  

 - 47 - 

 
Attorney General of the United States or any other department, agency or office of the United States claiming a violation or possible violation of the
Patriot Act; (v) not listed as a Specially Designated Terrorist or as a “blocked” person on any lists maintained by the OFAC pursuant to the Patriot Act or any other list of terrorists or terrorist organizations maintained pursuant to any
of the rules and regulations of the OFAC issued pursuant to the Patriot Act or on any other list of terrorists or terrorist organizations maintained pursuant to the Patriot Act; (vi) not a person who has been determined by competent authority to be
subject to any of the prohibitions contained in the Patriot Act; and (vii) not owned or controlled by or now acting and or will in the future act for or on behalf of any person named in the Annex or any other list promulgated under the Patriot Act
or any other person who has been determined to be subject to the prohibitions contained in the Patriot Act. Borrower covenants and agrees that in the event Borrower receives any notice that Borrower Principal or Borrower (or any of its beneficial
owners or affiliates or participants) becomes listed on the Annex or any other list promulgated under the Patriot Act or is indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money laundering,
Borrower shall immediately notify Lender. It shall be an Event of Default hereunder if Borrower, Borrower Principal or any other party to any Loan Document becomes listed on any list promulgated under the Patriot Act or is indicted, arraigned or
custodially detained on charges involving money laundering or predicate crimes to money laundering. 
  
 Section 4.41. FRANCHISE AGREEMENT. 
  
 The Franchise Agreement is in full force and effect, all franchise fees, reservation fees, royalties and other sums due
thereunder have been paid in full to date, and neither Borrower nor Franchisor is in default thereunder. 
  
 Section 4.42. GROUND LEASE REPRESENTATIONS. 
  
 (a) Each Ground Lease is in full force and effect and has
not been modified or amended in any manner whatsoever, except as described on Schedule IV hereof, (ii) there are no defaults under any Ground Lease by Borrower, or, to the best of Borrower’s knowledge, landlord thereunder, and, to the best of
Borrower’s knowledge, no event has occurred which but for the passage of time, or notice, or both would constitute a default under such Ground Lease, (iii) all rents, additional rents and other sums due and payable under each Ground Lease have
been paid in full, and (iv) neither Borrower nor the landlord under each Ground Lease has commenced any action or given or received any notice for the purpose of terminating such Ground Lease. 
  
 (b) Intentionally Deleted; 
  
 (c) The Ground Lease or a memorandum thereof have been duly
recorded, the Ground Lease permits the interest of the lessee thereunder to be encumbered by the applicable Mortgage, and there has not been any change in the terms of the Ground Lease since their recordation except as set forth on Schedule IV
hereof; 
  
 (d) Except as indicated in the
related Title Insurance Policy, Borrower’s interest in the Ground Lease are not subject to any Liens superior to, or of equal priority with, the applicable Mortgage; 
  

 - 48 - 

 (e) Borrower’s interest in the Ground Lease are assignable upon notice to, but
without the consent of, the lessor thereunder and, in the event that it is so assigned, it is further assignable upon notice to, but without the need to obtain the consent of, such lessor; 
  
 (f) The Ground Lease requires the lessor thereunder to give
notice of any default by Borrower to Lender provided Borrower gives such lessor written notice of Lender’s address, and the Ground Lease further provide that any right of Borrower to terminate the applicable Ground Lease shall not be
effectively exercised by Borrower, nor honored by the lessor unless such right of termination shall be joined in and consented to by Lender; 
  
 (g) Lender is permitted a reasonable opportunity (including, where necessary, sufficient time to gain possession of the interest of
Borrower under the Ground Leases) to cure any default under the Ground Lease, which is curable after the receipt of notice of any default before the lessor thereunder may terminate such Ground Lease; 
  
 (h) Each Ground Lease has a term which extends not less than
twenty (20) years beyond the Maturity Date; 
  
 (i) The Ground Lease requires the lessor to enter into a new lease with any mortgagee upon termination of the applicable Ground Lease for any reason, including rejection of such Ground Lease in a bankruptcy proceeding; 
  
 (j) Under the terms of each Ground Lease and the applicable
Loan Documents, taken together, any Net Proceeds will be applied either to the Restoration of all or part of the Properties or to the payment of the outstanding principal balance of the Loan together with any accrued interest thereon; and

  
 (k) The Ground Lease does not impose
restrictions on subletting. 
  
 Section 4.43.
SURVIVAL. 
  
 Borrower agrees
that, unless expressly provided otherwise, all of the representations and warranties of Borrower set forth in this Agreement and in the other Loan Documents shall survive for so long as any portion of the Debt remains owing to Lender. All
representations, warranties, covenants and agreements made in this Agreement or in the other Loan Documents by Borrower shall be deemed to have been relied upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on
its behalf. 
  

 - 49 - 

 ARTICLE 5 
 BORROWER COVENANTS 
  
 From
the date hereof and until repayment of the Debt in full and performance in full of all obligations of Borrower under the Loan Documents or the earlier release of the Liens of the Mortgages (and all related obligations) in accordance with the terms
of this Agreement and the other Loan Documents, Borrower hereby covenants and agrees with Lender that: 
  
 Section 5.1. EXISTENCE; COMPLIANCE WITH LEGAL
REQUIREMENTS. 
  
 (a) Borrower shall do or cause to be done all things necessary to preserve, renew and keep in full force and effect its existence, rights, licenses, permits and franchises that are necessary to own or operate the Properties under the name
of the hotel chain or system set forth on Schedule VII with respect to the applicable Individual Property and comply with all Legal Requirements applicable to it and the Properties. Borrower hereby covenants and agrees not to commit, permit or
suffer to exist any act or omission affording any Governmental Authority the right of forfeiture as against any Individual Property or any part thereof or any monies paid in performance of Borrower’s obligations under any of the Loan Documents.
Borrower shall at all times maintain, preserve and protect all franchises and trade names used in connection with the operation of the Properties. 
  
 (b) After prior written notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding, promptly initiated
and conducted in good faith and with due diligence, the Legal Requirements affecting an Individual Property, provided that (i) no Default or 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 other instrument to which Borrower or any Individual Property is subject and shall not constitute a default thereunder; (iii) neither the Properties, any part thereof or interest therein, any of the
tenants or occupants thereof, nor Borrower shall be affected in any material adverse way as a result of such proceeding; (iv) non-compliance with the Legal Requirements shall not impose civil or criminal liability on Borrower or Lender; (v) Borrower
shall have furnished the security as may be required in the proceeding or by Lender to ensure compliance by Borrower with the Legal Requirements; and (vi) Borrower shall have furnished to Lender all other items reasonably requested by Lender.

  
 Section 5.2. MAINTENANCE AND
USE OF PROPERTY. 
  
 Borrower shall cause the Properties to be maintained in a good and safe condition and repair. The Improvements and the Personal Property shall not be removed, demolished or other than in accordance with the provisions
of Section 5.21, materially altered (except for normal replacement of the Personal Property) without the prior written consent of Lender. If under applicable zoning provisions the use of all or any portion of any Individual Property is or shall
become a legal nonconforming use, Borrower will not cause or permit the legal nonconforming use to be discontinued or the legal nonconforming Improvement to be abandoned without the express written consent of Lender. 
  
 Section 5.3. WASTE. 
  
 Borrower shall not commit or suffer any waste of the Properties or make any
change in the use of the Properties which will in any way materially increase the risk of fire or other hazard arising out of the operation of any Individual 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 material way impair the value of any Individual Property or the security for the Loan. Borrower will not, without the prior written consent of Lender, permit any drilling or
exploration for or extraction, removal, or production of any minerals from the surface or the subsurface of any Individual Property, regardless of the depth thereof or the method of mining or extraction thereof. 
  

 - 50 - 

 Section 5.4. TAXES AND OTHER
CHARGES. 
  
 (a) Borrower shall pay all Taxes and Other Charges now or hereafter levied or assessed or imposed against the Properties or any part thereof as the same become due and payable; provided, however, Borrower’s obligation to directly pay
Taxes shall be suspended for so long as Borrower complies with the terms and provisions of Section 9.6 hereof. Borrower shall furnish to Lender receipts for the payment of the Taxes and the Other Charges prior to the date the same shall become
delinquent (provided, however, that Borrower is not required to furnish such receipts for payment of Taxes in the event that such Taxes have been paid by Lender pursuant to Section 9.6 hereof). Borrower shall not suffer and shall promptly cause to
be paid and discharged any Lien or charge whatsoever which may be or become a Lien or charge against any Individual Property, and shall pay when due for all utility services provided to the Properties. 
  
 (b) After prior written notice to Lender, Borrower, at its
own expense, may contest by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any Taxes or Other Charges, provided that (i) no Default or
Event of Default has occurred and remains uncured; (ii) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower is subject and shall not constitute a default thereunder
and such proceeding shall be conducted in accordance with all applicable Legal Requirements; (iii) neither the Properties nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost; (iv)
Borrower shall promptly upon final determination thereof pay the amount of any such Taxes or Other Charges, together with all costs, interest and penalties which may be payable in connection therewith; (v) such proceeding shall suspend the
collection of such contested Taxes or Other Charges from each Individual Property; and (vi) Borrower shall furnish such security as may be required in the proceeding, or deliver to Lender such reserve deposits as may be requested by Lender, to
insure the payment of any such Taxes or Other Charges, together with all interest and penalties thereon (unless Borrower has paid all of the Taxes or Other Charges under protest). Lender may pay over any such cash deposit or part thereof held by
Lender to the claimant entitled thereto at any time when, in the judgment of Lender, the entitlement of such claimant is established or any Individual Property (or part thereof or interest therein) shall be in danger of being sold, forfeited,
terminated, canceled or lost or there shall be any danger of the Lien of any of the Mortgages being primed by any related Lien. 
  
 Section 5.5. LITIGATION. 
  
 Borrower shall give prompt written notice to Lender of any litigation or governmental proceedings pending or threatened in writing against Borrower which
might materially adversely affect Borrower’s condition (financial or otherwise) or business or any Individual Property. 
  
 Section 5.6. ACCESS TO PROPERTIES. 
  
 Borrower shall permit agents, representatives and employees of Lender to
inspect the Properties or any part thereof at reasonable hours upon reasonable advance notice. 
  

 - 51 - 

 Section 5.7. NOTICE OF DEFAULT.

  
 Borrower shall promptly advise Lender of any material adverse
change in the condition (financial or otherwise) of Borrower, any Borrower Principal or any Individual Property or of the occurrence of any Default or Event of Default of which Borrower has knowledge. 
  
 Section 5.8. COOPERATE IN
LEGAL PROCEEDINGS. 
  
 Borrower shall at Borrower’s expense cooperate fully with Lender with respect to any proceedings before any court, board or other Governmental Authority which may in any way affect the rights of Lender hereunder or any rights obtained
by Lender under any of the other Loan Documents and, in connection therewith, permit Lender, at its election, to participate in any such proceedings. 
  
 Section 5.9. PERFORMANCE BY BORROWER. 
  
 Borrower shall in a timely manner observe, perform and fulfill each and every
covenant, term and provision to be observed and performed by Borrower under this Agreement and the other Loan Documents and cause Operating Lessee to observe, perform and fulfill in a timely manner each and every covenant, term and provision to be
observed and performed by Operating Lessee under any other agreement or instrument affecting or pertaining to each Individual Property and any amendments, modifications or changes thereto. 
  
 Section 5.10. AWARDS; INSURANCE
PROCEEDS. 
  
 Borrower shall
cooperate with Lender in obtaining for Lender the benefits of any Awards or Insurance Proceeds lawfully or equitably payable in connection with the Properties, and Lender shall be reimbursed for any expenses incurred in connection therewith
(including reasonable, actual attorneys’ fees and disbursements, and the payment by Borrower of the expense of an appraisal on behalf of Lender in case of a Casualty or Condemnation affecting each Individual Property or any part thereof) out of
such Awards or Insurance Proceeds. 
  
 Section 5.11.
FINANCIAL REPORTING. 
  
 (a) Borrower and Borrower Principal shall keep adequate books and records of account in accordance with GAAP, or in accordance with other methods mutually agreeable by Lender and Borrower, consistently applied and
shall furnish to Lender: 
  
 (i) monthly,
quarterly and annual certified occupancy reports (including an average daily rate and any and all franchise inspection reports received by Borrower during such period) and management reports prepared by or on behalf of Manager and prepared in
accordance with industry standards; 
  
 (ii)
monthly, quarterly and annual operating statements of each Individual Property, prepared and certified by Borrower substantially in the form attached hereto as Exhibit G [BORROWER FORM WILL BE USED] (with the annual operating statement
prepared and audited by an Acceptable Accountant), detailing the revenues received, the expenses incurred and the net operating 

  

 - 52 - 

 
income before and after debt service (principal and interest) and major capital improvements for the period of calculation and containing appropriate
year-to-date information, within thirty (30) days after the end of each calendar month (other than the last month of a fiscal quarter), forty-five (45) days after the end of each fiscal quarter (other than the last quarter of a fiscal year) or
ninety (90) days after the close of each fiscal year of Borrower, as applicable; 
  
 (iii) quarterly and annual balance sheets, profit and loss statements, statements of cash flows of Borrower and Borrower Principal
prepared in accordance with GAAP (with the annual financial statements prepared and audited by an Acceptable Accountant), within forty-five (45) days after the end of each fiscal quarter or ninety (90) days after the close of each fiscal year of
Borrower and Borrower Principal, as applicable, as the case may be; and 
  
 (iv) an Annual Budget not later than thirty (30) days after the commencement of each fiscal year of Borrower in form reasonably satisfactory to Lender. In the event that Lender objects to a proposed Annual Budget
submitted by Borrower, Lender shall advise Borrower of such objections within fifteen (15) days after receipt thereof (and deliver to Borrower a reasonably detailed description of such objections) and Borrower shall promptly revise such Annual
Budget and resubmit the same to Lender. Lender shall advise Borrower of any objections to such revised Annual Budget within ten (10) days after receipt thereof (and deliver to Borrower a reasonably detailed description of such objections) and
Borrower shall promptly revise the same in accordance with the process described in this subsection until Lender approves the Annual Budget. Until such time that Lender approves a proposed Annual Budget, which approval shall not be unreasonably
withheld, conditioned or delayed, the most recent Annual Budget shall apply; provided that, such approved Annual Budget shall be adjusted to reflect actual increases in Taxes, Insurance Premiums, utilities expenses and expenses under the Management
Agreement. 
  
 (v) annual rent rolls of each
respective Individual Property to be delivered with the annual operating statements of such Individual Property, prepared and certified by Borrower. 
  
 (b) Upon request from Lender, Borrower shall promptly furnish to Lender: 
  
 (i) Intentionally Deleted; 
  
 (ii) if applicable, an accounting of all security deposits held in connection with any Lease of any part of
each Individual Property, including the name and identification number of the accounts in which such security deposits are held, the name and address of the financial institutions in which such security deposits are held and the name of the Person
to contact at such financial institution, along with any authority or release necessary for Lender to obtain information regarding such accounts directly from such financial institutions; and 
  

 - 53 - 

 (iii) if applicable, a report of all letters of credit provided by any Tenant in
connection with any Lease of any part of each Individual Property, including the account numbers of such letters of credit, the names and addresses of the financial institutions that issued such letters of credit and the names of the Persons to
contact at such financial institutions, along with any authority or release necessary for Lender to obtain information regarding such letters of credit directly from such financial institutions. 
  
 (c) Borrower shall deliver to Lender copies of any reports
or documents required to be delivered to Franchisor under the Franchise Agreements. 
  
 (d) Notwithstanding the foregoing, any requirement contained in this Section 5.11 to deliver an audited financial statement of Borrower
may be satisfied by Borrower’s delivery to Lender of an audited financial statement of Capital Lodging, provided all the information required pursuant to this Section 5.11 allocable to each Borrower is clearly reflected and delineated in the
audited financial statements of Capital Lodging. 
  
 Section 5.12.
ESTOPPEL STATEMENT. 
  
 Upon Lender’s reasonable request in writing (but no more often than once in any calendar year unless in connection with a Securitization or during the continuance of an Event of Default): 
  
 (a) After written request by Lender, Borrower shall within
ten (10) Business Days furnish Lender with a statement, duly acknowledged and certified, setting forth (i) the amount of the original principal amount of the Note, (ii) the rate of interest on the Note, (iii) the unpaid principal amount of the Note,
(iv) the date installments of interest and/or principal were last paid, (v) any offsets or defenses to the payment of the Debt, if any, and (vi) that the Note, this Agreement, the Mortgages and the other Loan Documents are valid, legal and binding
obligations and have not been modified or if modified, giving particulars of such modification. 
  
 (b) Borrower shall use its commercially reasonable efforts to deliver to Lender upon written notice, duly executed estoppel certificates
from any one or more Tenants as required by Lender attesting to such facts regarding the related Lease as Lender may require, including, but not limited to attestations that each Lease covered thereby is in full force and effect with no defaults
thereunder on the part of any party, that none of the Rents have been paid more than one month in advance, except as security, and that the Tenant claims no defense or offset against the full and timely performance of its obligations under the
Lease. 
  
 (c) Borrower shall, promptly, upon
request of Lender, deliver an estoppel certificate from Franchisor stating that (i) the Franchise Agreement is in full force and effect and has not been modified, amended or assigned, (ii) neither Franchisor nor Borrower is in default under any of
the terms, covenants or provisions of the Franchise Agreement and Franchisor knows of no event which, but for the passage of time or the giving of notice or both, would constitute an event of default under the Franchise Agreement, (iii) neither
Franchisor nor Borrower has commenced any action or given or received any notice for the purpose of terminating the 

  

 - 54 - 

 
Franchise Agreement and (iv) all sums due and payable to Franchisor under the Franchise Agreement have been paid in full. 
  
 (d) Borrower shall, promptly, upon request of Lender,
deliver an estoppel certificate from Operating Lessee stating that (i) the Operating Lease is in full force and effect and has not been modified, amended or assigned, (ii) Borrower is not in default under any terms, covenants or provisions of the
Operating Lease and Borrower knows of no event which, but for the passage of time or the giving of notice or both, would constitute an event of default under the Operating Lease, (iii) Borrower has not commenced any action or given or received any
notice for the purpose of terminating the Operating Lease and (iv) all sums due and payable under the Operating Lease have been paid in full. 
  
 (e) Borrower shall, promptly upon request of Lender, deliver to Lender an estoppel certificate from each Ground Lessor stating that (i)
the applicable Ground Lease is in full force and effect and has not been modified, amended or assigned, (ii) neither Ground Lessor nor Borrower is in default under any of the terms, covenants or provisions of the Ground Lease and Ground Lessor knows
of no event which, but for the passage of time or the giving of notice or both, would constitute an event of default under the Ground Lease, (iii) neither Ground Lessor nor Borrower has commenced any action or given or received any notice for the
purpose of terminating the Ground Lease and (iv) all sums due and payable under the Ground Lease have been paid in full. 
  
 Section 5.13. LEASING MATTERS. 
  
 (a) Borrower may enter into a proposed Lease (including the renewal or extension of an existing Lease (a
“Renewal Lease”)) without the prior written consent of Lender, provided such proposed Lease or Renewal Lease (i) provides for rental rates and terms comparable to existing local market rates and terms (taking into account the type
and quality of the tenant) as of the date such Lease is executed by Borrower (unless, in the case of a Renewal Lease, the rent payable during such renewal, or a formula or other method to compute such rent, is provided for in the original Lease),
(ii) is an arm’s-length transaction with a bona fide, independent third party tenant, (iii) does not have a materially adverse effect on the value of any Individual Property taken as a whole, (iv) does not contain any option, offer, right of
first refusal, or other similar right to acquire all or any portion of any Individual Property, and (v) has a base term of less than fifteen (15) years including options to renew. All proposed Leases which do not satisfy the requirements set forth
in this subsection shall be subject to the prior approval of Lender and its counsel, at Borrower’s expense. Borrower shall promptly deliver to Lender copies of all Leases which are entered into pursuant to this subsection together with
Borrower’s certification that it has satisfied all of the conditions of this Section. 
  
 (b) Borrower, (i) shall observe and perform all the obligations imposed upon the landlord under the Leases in all material respects and
shall not do or permit to be done anything to materially impair the value of any of the Leases as security for the Debt; (ii) shall promptly send copies to Lender of all notices of default which Borrower shall send or receive thereunder; (iii) shall
enforce all of the material terms, covenants and conditions contained in the Leases upon the part of the tenant thereunder to be observed or performed; (iv) shall not collect any of the Rents more than one (1) month in advance (except security
deposits shall 

  

 - 55 - 

 
not be deemed Rents collected in advance); (v) shall not execute any other assignment of the landlord’s interest in any of the Leases or the Rents; and
(vi) shall not consent to any assignment of or subletting under any Leases not in accordance with their terms, without the prior written consent of Lender. 
  
 (c) Borrower may, without the prior written consent of Lender, amend, modify or waive the provisions of any Lease or terminate, reduce
Rents under, accept a surrender of space under, or shorten the term of, any Lease (including any guaranty, letter of credit or other credit support with respect thereto) provided that such action (taking into account, in the case of a termination,
reduction in rent, surrender of space or shortening of term, the planned alternative use of the affected space) does not have a materially adverse effect on the value of any Individual Property taken as a whole, and provided that such Lease, as
amended, modified or waived, is otherwise in compliance with the requirements of this Agreement and any subordination agreement binding upon Lender with respect to such Lease. A termination of a Lease with a tenant who is in default beyond
applicable notice and grace periods shall not be considered an action which has a materially adverse effect on the value of any Individual Property taken as a whole. Any amendment, modification, waiver, termination, rent reduction, space surrender
or term shortening which does not satisfy the requirements set forth in this subsection shall be subject to the prior approval of Lender and its counsel, at Borrower’s expense. Borrower shall promptly deliver to Lender copies of amendments,
modifications and waivers which are entered into pursuant to this subsection together with Borrower’s certification that it has satisfied all of the conditions of this subsection. 
  
 (d) Notwithstanding anything contained herein to the contrary, Borrower shall not, without the prior written
consent of Lender, enter into, renew, extend, amend, modify, waive any provisions of, terminate, reduce Rents under, accept a surrender of space under, or shorten the term of any Major Lease. 
  
 Section 5.14. PROPERTY
MANAGEMENT. 
  
 (a) Borrower shall (i) promptly perform and observe all of the covenants required to be performed and observed by it under the Management Agreement and do all things necessary to preserve and to keep unimpaired its material rights
thereunder; (ii) promptly notify Lender of any default under the Management Agreement of which it is aware; (iii) promptly deliver to Lender a copy of any notice of default or other material notice received by Borrower under the Management
Agreement; (iv) promptly give notice to Lender of any notice or information that Borrower receives which indicates that Manager is terminating the Management Agreement or that Manager is otherwise discontinuing its management of any Individual
Property; and (v) promptly enforce the performance and observance of all of the covenants required to be performed and observed by Manager under the Management Agreement. Lender hereby acknowledges that as of the date hereof, Prism Hospitality, L.P.
is an acceptable Manager. 
  
 (b) If at any time,
(i) Manager shall become insolvent or a debtor in a bankruptcy proceeding, (ii) an Event of Default has occurred and is continuing; (iii) a default has occurred and is continuing under the Management Agreement; or (iv) at any time the Net Operating
Income for the Properties then encumbered by a Mortgage for the immediately preceding 

  

 - 56 - 

 
twelve (12) month period is less than 75% of the Closing NOI for such Properties, Borrower shall, at the request of Lender, terminate the Management
Agreement upon thirty (30) days prior notice to Manager and replace Manager no later than the later of thirty (30) days after such notice or within five (5) days of the actual date of termination with a Qualified Manager approved by Lender on terms
and conditions satisfactory to Lender, it being understood and agreed that the management fee for such replacement manager shall not exceed then prevailing market rates. 
  
 (c) Borrower shall not, without the prior written consent of Lender (which consent shall not be unreasonably
withheld, conditioned or delayed, except as provided above): (i) surrender, terminate or cancel the Management Agreement or otherwise replace Manager or enter into any other management agreement with respect to any Individual Property; (ii) reduce
or consent to the reduction of the term of the Management Agreement; (iii) increase or consent to the increase of the amount of any charges under the Management Agreement; or (iv) otherwise modify, change, supplement, alter or amend, or waive or
release any of its rights and remedies under, the Management Agreement in any material respect. In the event that Borrower replaces Manager at any time during the term of Loan pursuant to this subsection, such Manager shall be a Qualified Manager.

  
 (d) In the event Manager terminates the
Management Agreement, Borrower shall replace Manager with a Qualified Manager within fifteen (15) days of such termination. Such Qualified Manager shall assume management of the applicable Individual Property pursuant to a Replacement Management
Agreement. 
  
 Section 5.15.
LIENS. 
  
 Borrower shall
not, without the prior written consent of Lender, create, incur, assume or suffer to exist any Lien on any portion of any Individual Property or permit any such action to be taken, except Permitted Encumbrances. 
  
 Section 5.16. DEBT
CANCELLATION. 
  
 Borrower shall
not cancel or otherwise forgive or release any claim or debt (other than termination of Leases in accordance herewith) owed to Borrower by any Person, except for adequate consideration and in the ordinary course of Borrower’s business.

  
 Section 5.17. ZONING.

  
 Borrower shall not initiate or consent to any zoning
reclassification of any portion of any Individual Property or seek any variance under any existing zoning ordinance which would have a Material Adverse Effect, or use or permit the use of any portion of the Properties in any manner that could result
in such use becoming a non-conforming use under any zoning ordinance or any other applicable land use law, rule or regulation, without the prior written consent of Lender. 
  

 - 57 - 

 Section 5.18. ERISA. 
  
 (a) Borrower shall not engage in any transaction which would
cause any obligation, or action taken or to be taken, hereunder (or the exercise by Lender of any of its rights under the Note, this Agreement or the other Loan Documents) to be a non-exempt (under a statutory or administrative class exemption)
prohibited transaction under ERISA. 
  
 (b)
Borrower further covenants and agrees to deliver to Lender such certifications or other evidence from time to time throughout the term of the Loan, as requested by Lender in its sole discretion, that (i) Borrower is not and does not maintain an
“employee benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “governmental plan” within the meaning of Section 3(3) of ERISA; (ii) Borrower is not subject to state statutes regulating
investments and fiduciary obligations with respect to governmental plans; and (iii) one or more of the following circumstances is true: 
  
 (A) Equity interests in Borrower are publicly offered securities, within the meaning of 29 C.F.R. §2510.3-101(b)(2); 
  
 (B) Less than twenty-five percent (25%) of each outstanding
class of equity interests in Borrower are held by “benefit plan investors” within the meaning of 29 C.F.R. §2510.3-101(f)(2); or 
  
 (C) Borrower qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R.
§2510.3-101(c) or (e). 
  
 Section 5.19. NO
JOINT ASSESSMENT. 
  
 Borrower shall not suffer, permit or initiate the joint assessment of any Individual Property with (a) any other real property constituting a tax lot separate from such Individual Property, or (b) any portion of such Individual Property
which may be deemed to constitute personal property, or any other procedure whereby the Lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to such Individual Property. 
  
 Section 5.20. RECIPROCAL EASEMENT
AGREEMENTS. 
  
 Borrower shall
not enter into, terminate or modify any REA without Lender’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Borrower shall enforce, comply with, and cause each of the parties to the REA to
comply with all of the material economic terms and conditions contained in the REA. 
  
 Section 5.21. ALTERATIONS. 
  
 (a) Lender’s prior approval shall be required in connection with any alteration project or projects that may exist at any time to any
Improvements (the “Alterations”), exclusive of alterations to tenant spaces required under any Lease, or, subject to the terms of Article 9 hereof, any Required Work (a) that may have a material adverse effect on any Individual Property,
(b) that are structural in nature in any material respect or (c) that are reasonably anticipated to have unpaid costs incurred or to be incurred in excess of the Alteration Threshold. All Alterations shall be done and completed in an expeditious and
diligent fashion and shall be performed in such a manner that is in compliance with the applicable Franchise Agreement and that does not result in the loss of access to the applicable Individual Property. 
  

 - 58 - 

 (b) All the terms and conditions set forth in Section 9.4 (other than Section 9.4(a))
with respect to Required Work shall apply with respect to any Alteration work undertaken by Borrower. Any rights Lender may have with respect to Required Work set forth in Section 9.4 (other than Section 9.4(a)) shall also apply with respect to any
Alteration work undertaken by Borrower. 
  
 (c)
In the event any Alteration requires Lender’s prior approval pursuant to the terms hereof, Borrower shall comply with each of the following conditions: 
  
 (i) Borrower shall deliver, or cause to be delivered, to Lender a signed detailed budget approved in writing by Borrower’s architect
or engineer stating the entire cost of completing all outstanding Alterations, which budget shall be acceptable to Lender; and 
  
 (ii) All plans and specifications required in connection with all outstanding Alterations shall be subject to prior review and acceptance
in all respects by Lender and by an independent consulting engineer reasonably selected by Lender (the “Alteration Consultant”), such review and acceptance to be exercised in Lender’s and Alteration Consultant’s reasonable
discretion. Lender shall have the use of the plans and specifications and all permits, licenses and approvals required or obtained in connection with the outstanding Alterations. The identity of the contractors, subcontractors and materialmen
engaged in the outstanding Alterations, as well as the contracts under which they have been engaged, shall be subject to prior review and acceptance by Lender and the Alteration Consultant, such review and acceptance to be exercised in Lender’s
and Alteration Consultant’s reasonable discretion. 
  
 (d) If the total unpaid costs incurred and to be incurred with respect to any Alteration project or projects that may exist at any time with respect to the Improvements shall at any time exceed the Alteration
Threshold, Borrower shall promptly deliver to Lender as security for the payment of such amounts and as additional security for Borrower’s obligations under the Loan Documents any of the following: (i) cash, (ii) direct non-callable obligations
of the United States of America or other obligations which are “government securities” within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, to the extent acceptable to the applicable Rating Agencies, (iii) other
securities acceptable to Lender and the Rating Agencies, (iv) a completion bond, provided that such completion bond is acceptable to the Lender and the Rating Agencies or (v) Letters of Credit. Such security shall be in an amount equal to the excess
of the total unpaid amounts incurred and to be incurred with respect to such alterations to the Improvements over the Alteration Threshold (the “Required Alteration Reserve Amount”). Lender shall, within ten (10) Business Days of a written
request from Borrower and satisfaction of the requirements set forth in this Section 5.21(d) either (i) to the extent Lender is holding cash security, disburse to Borrower amounts from the security account established pursuant to this Section
5.21(d) above, necessary to pay for the actual costs of completed Alteration work, or (ii) to the extent Lender is holding security other than cash, return or release that portion of the security (as applicable), in an amount equal to the actual
costs of such completed Alteration work (but only to the extent Lender is holding security to make such payments pursuant to subsection (a) above). In no event shall Lender be obligated to disburse such funds or reduce or release any such security
if either (i) an Event of Default then exists or (ii) the amount of security held by 

  

 - 59 - 

 
Lender pursuant to subsection (a) above, after giving effect to such disbursement, reduction or release shall be less than the Required Alteration Reserve
Amount (less the amount to be paid for the completed work with such funds disbursed from the reserve account) then calculated. Each request for disbursement from the security account established pursuant to this Section 5.21(d) above or request or
reduction or release of other security held pursuant to this Section 5.21(d) shall be in a form reasonably specified or reasonably approved by Lender and be submitted together with a certificate from Borrower (i) specifying the specific Alteration
work (or part thereof) for which the disbursement, reduction or release is requested, (ii) stating that all Alteration work at the Property to be funded by the requested disbursement (or for which a reduction or release of any other security is
being requested) have been completed in good and workmanlike manner and, to the best of Borrower’s knowledge, in accordance with all Legal Requirements, (iii) identifying each Person that supplied materials or labor in connection with the
Alteration work performed at the Property with respect to the disbursement requested (or for which the reduction or release of any other security is being requested), and (iv) stating that each such Person has been paid, or will be paid, in full
upon such disbursement, reduction or release, with such certificate of Borrower also being accompanied by lien waivers (which may be conditional) and other evidence of payment reasonably satisfactory to Lender (except with respect to the Alteration
work then to be paid with the requested disbursement). Each such request shall be delivered at least ten (10) Business Days prior to the date of the requested disbursement, reduction or release and shall include copies of invoices for all costs
incurred or to be incurred and each request shall include evidence reasonably satisfactory to Lender of payment of all such amounts or evidence that such amounts will be paid by such disbursement or upon such reduction or release. Borrower shall not
make a request for such disbursement, reduction or release more frequently than once in any calendar month. Lender shall not be required to make disbursements from the reserve account established pursuant to Section 5.21(a) unless such requested
disbursement is in an amount greater than $25,000 or, if less, the remaining balance of the reserve account. Borrower shall not make a request for, nor shall Lender have any obligation to make, any disbursement from the reserve account (or consent
to a reduction or release of other security) more frequently than once in any calendar month. 
  
 (e) Provided Borrower has submitted to Lender all information as may be requested by Lender in which to determine whether to grant any
approval required pursuant to this Section 5.21 or to make a disbursement from the security account established pursuant to Section 5.21(d) (or to reduce or release any other security delivered pursuant to Section 5.21(d), as applicable), Lender
shall use its commercially reasonable efforts (acting in good faith) to respond as promptly as reasonably possible to any request by Borrower for such approval or disbursement (or reduction or release, as applicable); provided, however, that
Lender’s failure to respond promptly shall not (i) negate, impair or otherwise adversely affect any rights Lender may have pursuant to the Loan Documents and (ii) be deemed to be an approval by Lender of the requested matter or an agreement by
Lender to make such disbursement (or reduction or release, as applicable). Notwithstanding the foregoing, in the event that all conditions to a disbursement (or reduction or release, as applicable) have been satisfied, Lender shall not refuse or
delay such disbursement (or consent to reduction or release) in the event any subsequent request by Borrower for disbursement (or consent to reduction or release) is still being processed and deliberated by Lender. 
  

 - 60 - 

 Section 5.22. INTENTIONALLY DELETED. 
  
 Section 5.23. INTEREST RATE
CAP AGREEMENT. 
  
 (a) Prior to or contemporaneously with the Closing Date, Borrower shall have obtained the Rate Cap, which shall be coterminous with the Loan and have a notional amount which shall not at any time be less than the
outstanding principal balance of the Loan. The Rate Cap shall be maintained throughout the term of the Loan with an Acceptable Counterparty. If the provider of the Rate Cap or any Replacement Rate Cap ceases to be an Acceptable Counterparty,
Borrower shall obtain a Replacement Rate Cap at Borrower’s sole cost and expense within ten (10) days of receipt of notice from Lender or Borrower’s obtaining knowledge that the provider is no longer an Acceptable Counterparty. 

 
 (b) Borrower shall collaterally assign to Lender pursuant
to the Collateral Assignment of Interest Rate Cap Agreement all of its right, title and interest to receive any and all payments under the Rate Cap or any Replacement Rate Cap (and any related guarantee, if any) and shall deliver to Lender
counterparts of such Collateral Assignment of Interest Rate Cap Agreement executed by the Borrower and by the Acceptable Counterparty and notify the Acceptable Counterparty of such collateral assignment (either in such Rate Cap or by separate
instrument). At such time as the Loan is repaid in full, all of Lender’s right, title and interest in the Rate Cap and any Replacement Rate Cap shall terminate and Lender shall execute and deliver at Borrower’s sole cost and expense, such
documents as may be required to evidence Lender’s release of the Rate Cap and any Replacement Rate Cap and to notify the Acceptable Counterparty of such release. 
  
 (c) Borrower shall comply with all of its obligations under the terms and provisions of the Rate Cap and any
Replacement Rate Cap. All amounts paid by the Acceptable Counterparty under the Rate Cap to Borrower or Lender shall be deposited immediately into the Cash Management Account. Borrower shall take all actions reasonably requested by Lender to enforce
Lender’s rights under the Rate Cap and any Replacement Rate Cap in the event of a default by the Acceptable Counterparty and shall not waive, amend or otherwise modify any of its rights thereunder. 
  
 (d) In the event that Borrower fails to purchase and deliver
to Lender the Rate Cap or any Replacement Rate Cap as and when required hereunder, or fails to maintain such agreement in accordance with the terms and provisions of this Agreement, Lender may purchase the Rate Cap or any Replacement Rate Cap, as
applicable, and the cost incurred by Lender in purchasing the Rate Cap or any Replacement Rate Cap, as applicable, shall be paid by Borrower to Lender with interest thereon at the Default Rate from the date such cost was incurred by Lender until
such cost is reimbursed by Borrower to Lender. 
  
 (e) In connection with the Rate Cap and any Replacement Rate Cap, Borrower shall obtain and deliver to Lender an opinion from counsel (which counsel may be in house counsel for the Acceptable Counterparty) for the Acceptable Counterparty
(upon which Lender and its successors and assigns may rely) which shall provide, in relevant part, that: 
  
 (i) the Acceptable Counterparty is duly organized, validly existing, and in good standing under the laws of its jurisdiction of
incorporation and has the organizational power and authority to execute and deliver, and to perform its obligations under, the Rate Cap or the Replacement Rate Cap, as applicable; 
  

 - 61 - 

 (ii) the execution and delivery of the Rate Cap or the Replacement Rate Cap, as
applicable, by the Acceptable Counterparty, and any other agreement which the Acceptable Counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been and remain duly authorized by all
necessary action and do not contravene any provision of its certificate of incorporation or by laws (or equivalent organizational documents) or any law, regulation or contractual restriction binding on or affecting it or its property; 
  
 (iii) all consents, authorizations and approvals required
for the execution and delivery by the Acceptable Counterparty of the Rate Cap or the Replacement Rate Cap, as applicable, and any other agreement which the Acceptable Counterparty has executed and delivered pursuant thereto, and the performance of
its obligations thereunder have been obtained and remain in full force and effect, all conditions thereof have been duly complied with, and no other action by, and no notice to or filing with any governmental authority or regulatory body is required
for such execution, delivery or performance; and 
  
 (iv) the Rate Cap or the Replacement Cap, as applicable, and any other agreement which the Acceptable Counterparty has executed and delivered pursuant thereto, has been duly executed and delivered by the Acceptable Counterparty and
constitutes the legal, valid and binding obligation of the Acceptable Counterparty, enforceable against the Acceptable Counterparty in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’
rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 
  
 Section 5.24. FRANCHISE AGREEMENT. 
  
 The Improvements on the Properties shall be operated under the terms and
conditions of the Franchise Agreements. Borrower shall (i) pay all sums required to be paid by Borrower under the Franchise Agreement, (ii) diligently perform, observe and enforce all of the terms, covenants and conditions of the Franchise Agreement
on the part of Borrower to be performed, observed and enforced to the end that all things shall be done which are necessary to keep unimpaired the rights of Borrower under the Franchise Agreement, (iii) promptly notify Lender of the giving of any
notice to Borrower of any default by Borrower in the performance or observance of any of the terms, covenants or conditions of the Franchise Agreement on the part of Borrower to be performed and observed and deliver to Lender a true copy of each
such notice, and (iv) if applicable, promptly deliver to Lender a copy of each financial statement, business plan, capital expenditure plan, notice, report and estimate received by it under the Franchise Agreement. Borrower shall not, without the
prior consent of Lender, surrender the Franchise Agreement or terminate or cancel the Franchise Agreement or modify, change, supplement, alter or amend the Franchise Agreement, in any material respect, either orally or in writing, and Borrower
hereby assigns to Lender as further security for the payment of the Debt and for the performance and observance of the terms, covenants and conditions of this Agreement, all the rights and privileges of Borrower to surrender the Franchise Agreement
or to terminate, cancel, materially modify, change, supplement, alter or amend the Franchise Agreement in any respect, and any such surrender of the Franchise Agreement or termination, cancellation, material modification, change, supplement,
alteration or amendment of the Franchise Agreement without 

  

 - 62 - 

 
the prior consent of Lender shall be void and of no force and effect. If Borrower shall default in the performance or observance of any material term,
covenant or condition of the Franchise Agreement on the part of Borrower to be performed or observed, then, without limiting the generality of the other provisions of this Agreement, and without waiving or releasing Borrower from any of its
obligations hereunder, Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any act or take any action as may be appropriate to cause all the terms, covenants and conditions of the Franchise Agreement on the
part of Borrower to be performed or observed to be promptly performed or observed on behalf of Borrower, to the end that the rights of Borrower in, to and under the Franchise Agreement shall be kept unimpaired and free from default. Lender and any
Person designated by Lender shall have, and are hereby granted, the right to enter upon the Properties at any time and from time to time for the purpose of taking any such action. If Franchisor shall deliver to Lender a copy of any notice sent to
Borrower of default under the Franchise Agreement, such notice shall constitute full protection to Lender for any action taken or omitted to be taken by Lender in good faith, in reliance thereon. Borrower shall, from time to time, use its best
efforts to obtain from Franchisor such certificates of estoppel with respect to compliance by Borrower with the terms of the Franchise Agreement as may be requested by Lender. Borrower shall exercise each individual option, if any, to extend or
renew the term of the Franchise Agreement upon demand by Lender made at any time within one (1) year of the last day upon which any such option may be exercised, and Borrower hereby expressly authorizes and appoints Lender as its attorney-in-fact to
exercise any such option in the name of and upon behalf of Borrower, which power of attorney shall be irrevocable and shall be deemed to be coupled with an interest. Any sums expended by Lender pursuant to this paragraph shall bear interest at the
Default Rate from the date such cost is incurred to the date of payment to Lender, shall be deemed to constitute a portion of the Debt, shall be secured by the lien of the Mortgages and the other Loan Documents and shall be immediately due and
payable upon demand by Lender therefor. 
  
 Section 5.25.
THE GROUND LEASE. 
  
 (a) With respect to each Ground Lease, (i) Borrower shall (i) pay all rents, additional rents and other sums required to be paid by
Borrower, as tenant under and pursuant to the provisions of each Ground Lease, (ii) diligently perform and observe all of the material terms, covenants and conditions of each Ground Lease on the part of Borrower, as tenant thereunder, (iii) promptly
notify Lender of the giving of any notice by the landlord under the applicable Ground Lease to Borrower of any default by Borrower, as tenant thereunder, and deliver to Lender a true copy of each such notice within five (5) Business Days of receipt
and (iv) promptly notify Lender of any bankruptcy, reorganization or insolvency of the landlord under the applicable Ground Lease or of any notice thereof, and deliver to Lender a true copy of such notice within five (5) Business Days of
Borrower’s receipt. Borrower shall not, without the prior consent of Lender, surrender the leasehold estate created by the applicable Ground Lease or terminate or cancel any Ground Lease or materially modify, change, supplement, alter or amend
any Ground Lease, either orally or in writing, and if Borrower shall default in the performance or observance of any material term, covenant or condition of any Ground Lease on the part of Borrower, as tenant thereunder, and shall fail to cure the
same prior to the expiration of any applicable cure period provided thereunder, Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any act or take any action as may be appropriate to cause all of the terms,
covenants and conditions of such Ground Lease 

  

 - 63 - 

 
on the part of Borrower to be performed or observed on behalf of Borrower, to the end that the rights of Borrower in, to and under such Ground Lease shall be
kept unimpaired and free from default. If the landlord under the applicable Ground Lease shall deliver to Lender a copy of any notice of default under such Ground Lease, such notice shall constitute full protection to Lender for any action taken or
omitted to be taken by Lender, in good faith, in reliance thereon. Borrower shall exercise each individual option, if any, to extend or renew the term of each Ground Lease upon demand by Lender made at any time within one (1) year prior to the last
day upon which any such option may be exercised, and Borrower hereby expressly authorizes and appoints Lender its attorney-in-fact to exercise any such option in the name of and upon behalf of Borrower, which power of attorney shall be irrevocable
and shall be deemed to be coupled with an interest. 
  
 (b) Subleases. Notwithstanding anything contained in any Ground Lease to the contrary, Borrower shall not further sublet any portion of the related Individual Property (other than as permitted pursuant to Section 5.13 hereof)
without prior written consent of Lender. Each sublease hereafter made shall provide that, (a) in the event of the termination of the Ground Lease, the sublease shall not terminate or be terminable by the lessee thereunder; (b) in the event of any
action for the foreclosure of the respective Mortgage with respect to the related Individual Property, the sublease shall not terminate or be terminable by the lessee thereunder by reason of the termination of the Ground Lease unless such lessee is
specifically named and joined in any such action and unless a judgment is obtained therein against such lessee; and (c) in the event that the Ground Lease is terminated as aforesaid, the lessee under the sublease shall attorn to the lessor under the
Ground Lease or to the purchaser at the sale of the related Individual Property on such foreclosure, as the case may be. In the event that any portion of such Individual Property shall be sublet pursuant to the terms of this subsection, such
sublease shall be deemed to be included in the Individual Property. 
  
 (c) Notwithstanding anything to the contrary contained herein with respect to any Ground Lease: 
  
 (i) The Lien of the Mortgages attach to all of Borrower’s rights and remedies at any time arising under or pursuant to subsection
365(h) of the Bankruptcy Code, including, without limitation, all of Borrower’s rights, as debtor, to remain in possession of the related Individual Property which is subject to a Ground Lease; 
  
 (ii) Borrower shall not, without Lender’s written
consent, elect to treat a Ground Lease as terminated under subsection 365(h)(1) of the Bankruptcy Code. Any such election made without Lender’s prior written consent shall be void; 
  
 (iii) As security for the Debt, Borrower unconditionally assigns, transfers and sets over to Lender all of
Borrower’s claims and rights to the payment of damages arising from any rejection by any Ground Lessor under the Bankruptcy Code. Lender and Borrower shall proceed jointly or in the name of Borrower in respect of any claim, suit, action or
proceeding relating to the rejection of a Ground Lease, including, without limitation, the right to file and prosecute any proofs of claim, complaints, motions, applications, notices and other documents in any case in respect a Ground Lessor under
the Bankruptcy Code. This assignment constitutes a present, irrevocable and 

  

 - 64 - 

 
unconditional assignment of the foregoing claims, rights and remedies, and shall continue in effect until all of the Debt shall have been satisfied and
discharged in full. Any amounts received by Lender or Borrower as damages arising out of the rejection of a Ground Lease as aforesaid shall be applied to all costs and expenses of Lender (including, without limitation, reasonable attorneys’
fees and costs) incurred in connection with the exercise of any of its rights or remedies in accordance with the applicable provisions hereof; 
  
 (iv) If pursuant to subsection 365(h) of the Bankruptcy Code, Borrower seeks to offset, against the rent reserved in a Ground Lease, the
amount of any damages caused by the nonperformance by the applicable Ground Lessor of any of its obligations thereunder after the rejection by such Ground Lessor under the Bankruptcy Code, then Borrower shall not effect any offset of the amounts so
objected to by Lender. If Lender has failed to object as aforesaid within ten (10) days after notice from Borrower in accordance with the first sentence of this subsection, Borrower may proceed to offset the amounts set forth in Borrower’s
notice to Lender; 
  
 (v) In any action,
proceeding, motion or notice shall be commenced or filed in respect of any Ground Lessor of all or any part any Individual Property subject to a Ground Lease in connection with any case under the Bankruptcy Code, Lender and Borrower shall
cooperatively conduct and control any such litigation with counsel agreed upon between Borrower and Lender in connection with such litigation. Borrower shall, upon demand, pay to Lender all costs and expenses (including reasonable attorneys’
fees and costs) actually paid or actually incurred by Lender in connection with the cooperative prosecution or conduct of any such proceedings. All such costs and expenses incurred by Lender shall be secured by the Lien of the applicable Mortgage;
and 
  
 (vi) Borrower shall promptly, after
obtaining knowledge of such filing, notify Lender orally of any filing by or against a Ground Lessor of a petition under the Bankruptcy Code. Borrower shall thereafter promptly give written notice of such filing to Lender, setting forth any
information available to Borrower as to the date of such filing, the court in which such petition was filed, and the relief sought in such filing. Borrower shall promptly deliver to Lender any and all notices, summons, pleadings, applications and
other documents received by Borrower in connection with any such petition and any proceedings relating to such petition. 
  
 Section 5.26. EMBARGOED PERSON. 
  
 At all times throughout the term of the Loan, including after giving effect to any transfers of interests permitted pursuant
to the Loan Documents, (a) none of the funds or other assets of Borrower and Borrower Principal shall constitute property of, or will be beneficially owned, directly or indirectly, by any person, entity or government subject to trade restrictions
under U.S. law, including but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated
thereunder with the result that the investment in Borrower or Borrower Principal, as applicable (whether directly or indirectly), is prohibited by law or the Loan made by Lender is in violation of law (“Embargoed Person”); (b) no
Embargoed Person 

  

 - 65 - 

 
shall have any interest of any nature whatsoever in Borrower or Borrower Principal, as applicable, with the result that the investment in Borrower or
Borrower Principal, as applicable (whether directly or indirectly), would be prohibited by law or the Loan would be in violation of law; and (c) none of the funds of Borrower or Borrower Principal, as applicable, shall have been derived from any
unlawful activity with the result that the investment in Borrower or Borrower Principal, as applicable (whether directly or indirectly), would be prohibited by law or the Loan is in violation of law. 
  
 Section 5.27. OFAC. 
  
 At all times throughout the term of the Loan, Borrower, Borrower Principal
and their respective Affiliates shall be in full compliance with all applicable orders, rules, regulations and recommendations of The Office of Foreign Assets Control of the U.S. Department of the Treasury. 
  
 Section 5.28. OPERATING
LEASE. 
  
 (a)
With respect to each Operating Lease, Borrower shall (i) pay all rents, additional rents and other sums required to be paid by Borrower, under and pursuant to the provisions of each Operating Lease, (ii) diligently perform and observe all of the
material terms, covenants and conditions of each Operating Lease on the part of Borrower to be performed, (iii) promptly notify Lender of the giving of any notice under the applicable Operating Lease to Borrower of any default by Borrower, and
deliver to Lender a true copy of each such notice within five (5) Business Days of receipt and (iv) promptly notify Lender of any bankruptcy, reorganization or insolvency of the landlord under the applicable Operating Lease or of any notice thereof,
and deliver to Lender a true copy of such notice within five (5) Business Days of Borrower’s receipt. Borrower shall not, without the prior consent of Lender, surrender the leasehold estate created by the applicable Operating Lease or terminate
or cancel any Operating Lease or materially modify, change, supplement, alter or amend any Operating Lease, either orally or in writing, and if Borrower shall default in the performance or observance of any material term, covenant or condition of
any Operating Lease on the part of Borrower, and shall fail to cure the same prior to the expiration of any applicable cure period provided thereunder, Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any
act or take any action as may be appropriate to cause all of the terms, covenants and conditions of such Operating Lease on the part of Borrower to be performed or observed on behalf of Borrower, to the end that the rights of Borrower in, to and
under such Operating Lease shall be kept unimpaired and free from default; provided, however, that Lender shall have no such obligation to perform any such action. 
  

 - 66 - 

 ARTICLE 6 
 ENTITY COVENANTS 
  
 Section 6.1. SINGLE PURPOSE ENTITY/SEPARATENESS. 
  
 Until the Debt has been paid in full, Borrower represents warrants and covenants as follows: 
  
 (a) Borrower has not and will not: 
  
 (i) with respect to Borrower, engage in any business or
activity other than the ownership, operation and maintenance of the Properties, and activities incidental thereto and with respect to Operating Lessee, engage in any business or activity other than the leasehold ownership, operation and maintenance
of the Properties, and activities incidental thereto; 
  
 (ii) acquire or own any assets other than (A) the Properties or leasehold estate pursuant to the Operating Leases, and (B) such incidental property as may be necessary for the operation of the Properties; 
  
 (iii) merge into or consolidate with any Person, or
dissolve, terminate, liquidate in whole or in part, transfer or otherwise dispose of all or substantially all of its assets or change its legal structure; 
  
 (iv) fail to observe all organizational formalities, or fail to preserve its existence as an entity duly organized, validly existing and
in good standing (if applicable) under the applicable Legal Requirements of the jurisdiction of its organization or formation, or amend, modify, terminate or fail to comply with the provisions of its organizational documents; 
  
 (v) except with respect to Maryland Guarantor’s
ownership interest in Maryland Maker, own any subsidiary, or make any investment in, any Person; 
  
 (vi) commingle its assets with the assets of any other Person; 
  
 (vii) with respect to Maker and Maryland Guarantor, will not incur any debt, secured or unsecured, direct or
contingent (including guaranteeing any obligation), other than (A) with respect to the Maker, the Debt and with respect to Maryland Guarantor, the Maryland Guaranty, (B) trade and operational indebtedness incurred in the ordinary course of business
with trade creditors, provided such indebtedness with respect to each Maker and Maryland Guarantor is (1) unsecured, (2) not evidenced by a note, (3) on commercially reasonable terms and conditions, and (4) are paid within sixty (60) days of the
date incurred or the agreed date of repayment, whichever occurs later, (C) financing leases and purchase money indebtedness incurred in the ordinary course of business relating to Personal Property on commercially reasonable terms and conditions,
(D) any contractual obligations incurred by Borrower in connection with the performance of any Alterations on any Individual Property and/or (E) Utility Bonds; provided however, the aggregate amount of the indebtedness described in (B), (C), (D) and
(E) shall not exceed at any time five percent (5%) of the combined outstanding principal amount of the Note and the Mezzanine Note; provided further, however, that any debt or obligation for which sums sufficient to pay such debt or obligation (or
other security or a Letter of Credit) have been deposited in escrow with Lender pursuant to the terms hereof and for which there exists no impediment to Lender’s utilization thereof shall be disregarded for purposes of determining
Borrower’s compliance with the terms of this subsection (vii); 
  
 (viii) fail to maintain its records, books of account, bank accounts, financial statements, accounting records and other entity documents separate and apart from those 

  

 - 67 - 

 
of any other Person; except that Borrower’s financial position, assets, liabilities, net worth and operating results may be included in the consolidated
financial statements of an Affiliate, provided that such consolidated financial statements contain a footnote indicating that Borrower is a separate legal entity and that it maintains separate books and records; 
  
 (ix) enter into any contract or agreement with any general
partner, member, shareholder, principal, guarantor of the obligations of Borrower or any Affiliate of the foregoing, except upon terms and conditions that are intrinsically fair, commercially reasonable and substantially similar to, or better than,
those that would be available on an arm’s-length basis with unaffiliated third parties; 
  
 (x) maintain its assets in such a manner that it will be costly or difficult to segregate, ascertain or identify its individual assets
from those of any other Person; 
  
 (xi) assume
or, except with respect to the Maryland Guaranty, guaranty the debts of any other Person, hold itself out to be responsible for the debts of any other Person, or, except with respect to the Maryland Guaranty, otherwise pledge its assets for the
benefit of any other Person or hold out its credit as being available to satisfy the obligations of any other Person; 
  
 (xii) make any loans or advances to any Person; 
  

(xiii) fail to file its own tax returns or files a consolidated federal income tax return with any Person (unless prohibited or
required, as the case may be, by applicable Legal Requirements); 
  
 (xiv) fail either to hold itself out to the public as a legal entity separate and distinct from any other Person or to conduct its business solely in its own name or fail to correct any known misunderstanding
regarding its separate identity; 
  
 (xv)
[Reserved]; 
  
 (xvi) if it is a partnership or
limited liability company, without the unanimous written consent of all of its partners or members, as applicable, and the written consent of 100% of the managers of each SPE Component Entity (if any) (and if it is a corporation, without the
unanimous written consent of 100% of its directors) in each instance, including, without limitation, each Independent Director, (a) file or consent to the filing of any petition, either voluntary or involuntary, to take advantage of any Creditors
Rights Laws, (b) seek or consent to the appointment of a receiver, liquidator or any similar official, (c) take any action that might cause such entity to become insolvent, or (d) make an assignment for the benefit of creditors; 
  
 (xvii) fail to allocate shared expenses (including, without
limitation, shared office space and services performed by an employee of an Affiliate) among the Persons sharing such expenses and to use separate invoices and checks; 
  

 - 68 - 

 (xviii) [Reserved]; 
  
 (xix) acquire obligations or securities of its partners, members, shareholders or other affiliates, as
applicable; 
  
 (xx) violate or cause to be
violated the assumptions made with respect to Borrower and its principals in any opinion letter pertaining to substantive consolidation delivered to Lender in connection with the Loan; or 
  
 (xxi) fail to maintain a sufficient number of employees in
light of its contemplated business operations. 
  
 (b) Borrower has not failed (i) to maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations and (ii) to remain solvent or pay
its own liabilities (including, without limitation, salaries of its own employees) from its own funds. Borrower will not make any distributions to its equity owners if such distribution would render (i) Borrower inadequately capitalized for the
normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations or (ii) Borrower insolvent or make Borrower unable to pay its own liabilities (including, without limitation,
salaries of its own employees) from its own funds. 
  
 (c) If Borrower is a partnership or limited liability company, each general partner in the case of a general partnership, each general partner in the case of a limited partnership, or the managing member in the case of a limited liability
company (each an “SPE Component Entity”) of Borrower shall be a corporation or Delaware single member limited liability company whose sole asset is its interest in Borrower. Each SPE Component Entity (i) will at all times comply
with each of the covenants, terms and provisions contained in Section 6.1(a)(iii)—(vi) and (viii)—(xxi), as if such representation, warranty or covenant was made directly by such SPE Component Entity; (ii) will not engage in any business
or activity other than owning an interest in Borrower; (iii) will not acquire or own any assets other than its partnership, membership, or other equity interest in Borrower; (iv) will not incur any debt, secured or unsecured, direct or contingent
(including guaranteeing any obligation); and (v) will cause Borrower to comply with the provisions of this Section 6.1 and Section 6.4. Prior to the withdrawal or the disassociation of any SPE Component Entity from Borrower, Borrower shall
immediately appoint a new general partner or managing member whose articles of incorporation (or operating agreement in the case of a Delaware single member limited liability company) are substantially similar to those of such SPE Component Entity
and, if an opinion letter pertaining to substantive consolidation was required at closing, deliver a new opinion letter acceptable to Lender and the Rating Agencies with respect to the new SPE Component Entity and its equity owners. Notwithstanding
the foregoing, to the extent Borrower is a single member Delaware limited liability company, so long as Borrower maintains such formation status, no SPE Component Entity shall be required with respect to Borrower, as applicable. 
  
 (d) In the event Borrower or any SPE Component Entity is a
single member Delaware limited liability company, the limited liability company agreement of such Person (the “LLC Agreement”) shall provide that (i) upon the occurrence of any event that causes the sole member of such Person
(“Member”) to cease to be the member of such Person (other than (A) upon an assignment by Member of all of its limited liability company interest in such Person and the admission of the transferee in accordance with the Loan
Documents and the LLC Agreement, or (B) the resignation of Member and the admission of an additional member of such Person in accordance with the terms of the Loan Documents and the LLC Agreement), any person acting as Independent Director of such
Person shall, without any action of any other Person and simultaneously with the Member ceasing to be the member of such Person, automatically be admitted to such Person (“Special Member”) and shall 

  

 - 69 - 

 
continue such Person without dissolution and (ii) Special Member may not resign from such Person or transfer its rights as Special Member unless (A) a
successor Special Member has been admitted to such Person as Special Member in accordance with requirements of Delaware law and (B) such successor Special Member has also accepted its appointment as an Independent Director. The LLC Agreement shall
further provide that (i) Special Member shall automatically cease to be a member of such Person upon the admission to such Person of a substitute Member, (ii) Special Member shall be a member of such Person that has no interest in the profits,
losses and capital of such Person and has no right to receive any distributions of such Person assets, (iii) pursuant to Section 18-301 of the Delaware Limited Liability Company Act (the “Act”), Special Member shall not be required
to make any capital contributions to such Person and shall not receive a limited liability company interest in such Person, (iv) Special Member, in its capacity as Special Member, may not bind such Person and (v) except as required by any mandatory
provision of the Act, Special Member, in its capacity as Special Member, shall have no right to vote on, approve or otherwise consent to any action by, or matter relating to, such Person, including, without limitation, the merger, consolidation or
conversion of such Person; provided, however, such prohibition shall not limit the obligations of Special Member, in its capacity as Independent Director, to vote on such matters required by the Loan Documents or the LLC Agreement. In order to
implement the admission to such Person of Special Member, Special Member shall execute a counterpart to the LLC Agreement. Prior to its admission to such Person as Special Member, Special Member shall not be a member of such Person. 
  
 Upon the occurrence of any event that causes the Member to cease to be a
member of such Person, to the fullest extent permitted by law, the personal representative of Member shall, within ninety (90) days after the occurrence of the event that terminated the continued membership of Member in such Person, agree in writing
(i) to continue such Person and (ii) to the admission of the personal representative or its nominee or designee, as the case may be, as a substitute member of such Person, effective as of the occurrence of the event that terminated the continued
membership of Member of such Person in such Person. Any action initiated by or brought against Member or Special Member under any Creditors Rights Laws shall not cause Member or Special Member to cease to be a member of such Person and upon the
occurrence of such an event, the business of such Person shall continue without dissolution. The LLC Agreement shall provide that each of Member and Special Member waives any right it might have to agree in writing to dissolve such Person upon the
occurrence of any action initiated by or brought against Member or Special Member under any Creditors Rights Laws, or the occurrence of an event that causes Member or Special Member to cease to be a member of such Person. 
  
 Section 6.2. CHANGE OF NAME,
IDENTITY OR STRUCTURE. 
  
 Borrower shall not change or permit to be changed (a) Borrower’s name, (b) Borrower’s identity (including its trade name or names), (c) Borrower’s principal place of business set forth on the first page
of this Agreement, (d) the corporate, partnership or other organizational structure of Borrower, each SPE Component Entity (if any), or Borrower Principal, (e) Borrower’s state of organization, or (f) Borrower’s organizational
identification number, without in each case notifying Lender of such change in writing at least thirty (30) days prior to the effective date of such change and, in the case of a change in Borrower’s structure, without first obtaining the prior
written consent of Lender. In addition, Borrower shall not change or permit 

  

 - 70 - 

 
to be changed any organizational documents of Borrower or any SPE Component Entity (if any) if such change would adversely impact the covenants set forth in
Section 6.1 and Section 6.4 hereof. Borrower authorizes Lender to file any financing statement or financing statement amendment required by Lender to establish or maintain the validity, perfection and priority of the security interest granted
herein. At the request of Lender, Borrower shall execute a certificate in form satisfactory to Lender listing the trade names under which Borrower intend to operate the Properties, and representing and warranting that Borrower does business under no
other trade name with respect to the Properties. If Borrower does not now have an organizational identification number and later obtains one, or if the organizational identification number assigned to Borrower subsequently changes, Borrower shall
promptly notify Lender of such organizational identification number or change. 
  
 Section 6.3. BUSINESS AND OPERATIONS. 
  
 Borrower will qualify to do business and will remain in good standing under the laws of the States as and to the extent the same are required for the
ownership, maintenance, management and operation of the Properties. 
  
 Section 6.4. INDEPENDENT DIRECTOR. 
  
 (a) The organizational documents of each SPE Component Entity (if any) shall provide that at all times there shall be, and Borrower shall
cause there to be, at least two duly appointed members of the board of directors or managers (each an “Independent Director”) of such SPE Component Entity reasonably satisfactory to Lender each of whom are not at the time of such
individual’s initial appointment, and shall not have been at any time during the preceding five (5) years, and shall not be at any time while serving as a director or manager of such SPE Component Entity, either (i) a shareholder (or other
equity owner) of, or an officer, director, partner, manager, member (other than as a Special Member in the case of single member Delaware limited liability companies), employee, attorney or counsel of, Borrower, such SPE Component Entity or any of
their respective shareholders, partners, members, subsidiaries or affiliates; (ii) a customer or creditor of, or supplier to, Borrower or any of its respective shareholders, partners, members, subsidiaries or affiliates who derives any of its
purchases or revenue from its activities with Borrower or such SPE Component Entity or any Affiliate of any of them; (iii) a Person who Controls or is under common Control with any such shareholder, officer, director, partner, manager, member,
employee, supplier, creditor or customer; or (iv) a member of the immediate family of any such shareholder, officer, director, partner, manager, member, employee, supplier, creditor or customer. Notwithstanding the foregoing, a natural person who
would fail to satisfy any of the foregoing requirements solely as a result of such person serving as an Independent Director of an Affiliate of Borrower (other than serving as an Independent Director of Capital Lodging TRS I, Corp., a Delaware
corporation or Capital Lodging Properties I Limited Partner, L.P., a Delaware limited partnership) and receiving compensation for such services (including consideration paid to such person’s employer or any Affiliate thereof in respect of such
services), shall not be disqualified from serving as an Independent Director of Borrower if such individual is an Independent Director provided by a nationally-recognized company that provides professional Independent Directors and such company also
provides other corporate services in the ordinary course of its business. 
  

 - 71 - 

 (b) The organizational documents of each SPE Component Entity (if any) shall provide that
the board of directors or managers of such SPE Component Entity shall not take any action which, under the terms of any certificate of incorporation, by-laws or any voting trust agreement with respect to any common stock, requires an unanimous vote
of the board of directors of such SPE Component Entity of Borrower unless at the time of such action there shall be at least two members of the board of directors or managers who are Independent Directors. Such SPE Component Entity will not, without
the unanimous written consent of its board of directors or managers including each Independent Director, on behalf of itself or Borrower, (i) file or consent to the filing of any petition, either voluntary or involuntary, to take advantage of any
applicable Creditors Rights Laws; (ii) seek or consent to the appointment of a receiver, liquidator or any similar official; (iii) take any action that might cause such entity to become insolvent; or (iv) make an assignment for the benefit of
creditors. 
  
 ARTICLE 7 
 NO SALE OR ENCUMBRANCE 
  
 Section 7.1. TRANSFER DEFINITIONS. 
  
 For purposes of this Article 7 an “Affiliated Manager” shall mean any managing agent in which Borrower,
Borrower Principal, any SPE Component Entity (if any) or any affiliate of such entities has, directly or indirectly, any legal, beneficial or economic interest; “Control” shall mean the power to direct the management and policies of
a Restricted Party, directly or indirectly, whether through the ownership of voting securities or other beneficial interests, by contract or otherwise; “Restricted Party” shall mean Borrower, Borrower Principal, any SPE Component
Entity (if any), any Affiliated Manager, Mezzanine Borrower or any shareholder, partner, member or non-member manager, or any direct or indirect legal or beneficial owner of Borrower, Borrower Principal, any SPE Component Entity (if any), any
Affiliated Manager, Mezzanine Borrower or any non-member manager; and a “Sale or Pledge” shall mean a voluntary or involuntary sale, conveyance, mortgage, grant, bargain, encumbrance, pledge, assignment, grant of any options with
respect to, or any other transfer or disposition of (directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) of a legal or beneficial interest. 
  
 Section 7.2. NO
SALE/ENCUMBRANCE. 
  
 (a) Except as provided in Sections 2.5 and 7.3, Borrower shall not cause or permit a Sale or Pledge of any Individual Property or any part thereof or any legal or beneficial interest therein nor permit a Sale or
Pledge of an interest in any Restricted Party (in each case, a “Prohibited Transfer”), other than pursuant to Leases of space in the Improvements to Tenants in accordance with the provisions of Section 5.13, without the prior
written consent of Lender. 
  
 (b) A Prohibited
Transfer shall include, but not be limited to, (i) an installment sales agreement wherein Borrower agrees to sell an Individual Property or any part thereof for a price to be paid in installments; (ii) an agreement by Borrower leasing all or a
substantial part of any Individual Property for other than actual occupancy by a space tenant thereunder or a sale, assignment or other transfer of, or the grant of a security interest in, Borrower’s right, 

  

 - 72 - 

 
title and interest in and to any Leases or any Rents; (iii) if a Restricted Party is a corporation, any merger, consolidation or Sale or Pledge of such
corporation’s stock or the creation or issuance of new stock in one or a series of transactions; (iv) if a Restricted Party is a limited or general partnership or joint venture, any merger or consolidation or the change, removal, resignation or
addition of a general partner or the Sale or Pledge of the partnership interest of any general or limited partner or any profits or proceeds relating to such partnership interests or the creation or issuance of new partnership interests; (v) if a
Restricted Party is a limited liability company, any merger or consolidation or the change, removal, resignation or addition of a managing member or non-member manager (or if no managing member, any member) or the Sale or Pledge of the membership
interest of any member or any profits or proceeds relating to such membership interest; (vi) if a Restricted Party is a trust or nominee trust, any merger, consolidation or the Sale or Pledge of the legal or beneficial interest in a Restricted Party
or the creation or issuance of new legal or beneficial interests; or (vii) the removal or the resignation of Manager (including, without limitation, an Affiliated Manager) other than in accordance with Section 5.14. 
  
 Section 7.3. PERMITTED
TRANSFERS. 
  
 Notwithstanding
the provisions of Section 7.2, the following transfers shall not be deemed to be a Prohibited Transfer: (a) a transfer by devise or descent or by operation of law upon the death of a member, partner or shareholder of a Restricted Party; (b) the
transfer, in one or a series of transactions, of not more than forty-nine percent (49%) of the stock, limited partnership interests or non-managing membership interests (as the case may be) in a Restricted Party (other than Borrower, Mezzanine
Borrower); provided, however, no such transfers shall result in a change in Control in the Restricted Party or change in control of any Individual Property, and as a condition to each such transfer, Lender shall receive not less than thirty (30)
days prior written notice of such proposed transfer; (c) the pledge of any interest in Borrower in connection with the Mezzanine Loan; and (d) the sale, transfer or issuance of stock in Capital Lodging or general or limited partner or member thereof
provided such stock is listed on the New York Stock Exchange or such other nationally recognized stock exchange; notwithstanding anything to the contrary contained in this Section 7.3, Capital Lodging must continue to own and control, directly or
indirectly, at least a 51% interest in Borrower, SPE Component Entity, and Affiliated Manager. Notwithstanding the foregoing, any transfer that results in any Person owning in excess of forty-nine percent (49%) of the ownership interest in a
Restricted Party shall comply with the requirements of Section 7.4 hereof. 
  
 Section 7.4. LENDER’S RIGHTS. 
  
 Lender reserves the right to condition the consent to a Prohibited Transfer requested hereunder upon (a) a modification of the terms hereof and an
assumption of the Note and the other Loan Documents as so modified by the proposed Prohibited Transfer, (b) receipt of payment of a transfer fee equal to one percent (1%) of the outstanding principal balance of the Loan and all of Lender’s
out-of-pocket expenses incurred in connection with such Prohibited Transfer, (c) receipt of written confirmation from the Rating Agencies that the Prohibited Transfer will not result in a downgrade, withdrawal or qualification of the initial, or if
higher, then current ratings issued in connection with a Securitization, or if a Securitization has not occurred, any ratings to be assigned in connection with a Securitization, (d) the proposed 

  

 - 73 - 

 
transferee’s continued compliance with the covenants set forth in this Agreement (including, without limitation, the covenants in Article 6) and the
other Loan Documents, (e) a new manager for the Properties and a new management agreement satisfactory to Lender, and (f) the satisfaction of such other conditions and/or legal opinions as Lender shall determine in its sole discretion to be in the
interest of Lender. All out-of-pocket expenses incurred by Lender shall be payable by Borrower whether or not Lender consents to the Prohibited Transfer. Lender shall not be required to demonstrate any actual impairment of its security or any
increased risk of default hereunder in order to declare the Debt immediately due and payable upon a Prohibited Transfer made without Lender’s consent. This provision shall apply to each and every Prohibited Transfer, whether or not Lender has
consented to any previous Prohibited Transfer. Notwithstanding anything to the contrary contained in this Section 7.4, in the event a substantive non-consolidation opinion was delivered to Lender and the Rating Agencies in connection with the
closing of the Loan, and if any Sale or Pledge permitted under this Article 7 results in any Person and its Affiliates not owning in excess of 49% of the ownership interest in a Restricted Party on the Closing Date owning in excess of forty-nine
percent (49%) of the ownership interests in a Restricted Party, Borrower shall, prior to such transfer, and in addition to any other requirement for Lender consent contained herein, deliver a revised substantive non-consolidation opinion to Lender
reflecting such Prohibited Transfer, which opinion shall be in form, scope and substance acceptable in all respects to Lender and the Rating Agencies. 
  
 Section 7.5. ASSUMPTION. 
  
 Notwithstanding the foregoing provisions of this Article 7, following the date which is six (6) months from the Closing Date, Lender shall not
unreasonably withhold consent to a transfer of the Properties in its entirety to, and the related assumption of the Loan by, any Person (a “Transferee”) provided that each of the following terms and conditions are satisfied:

  
 (a) no Default or Event of Default has
occurred; 
  
 (b) Borrower shall have (i)
delivered written notice to Lender of the terms of such prospective transfer not less than sixty (60) days before the date on which such transfer is scheduled to close and, concurrently therewith, all such information concerning the proposed
Transferee as Lender shall reasonably require and (ii) paid to Lender a non-refundable processing fee in the amount of $25,000. Lender shall have the right to approve or disapprove the proposed transfer based on its then current underwriting and
credit requirements for similar loans secured by similar properties which loans are sold in the secondary market, such approval not to be unreasonably withheld. In determining whether to give or withhold its approval of the proposed transfer, Lender
shall consider the experience and track record of Transferee and its principals in owning and operating facilities similar to the Properties, the financial strength of Transferee and its principals, the general business standing of Transferee and
its principals and Transferee’s and its principals’ relationships and experience with contractors, vendors, tenants, lenders and other business entities; provided, however, that, notwithstanding Lender’s agreement to consider the
foregoing factors in determining whether to give or withhold such approval, such approval shall be given or withheld based on what Lender determines to be commercially reasonable and, if given, may be given subject to such conditions as Lender may
deem reasonably appropriate; 
  

 - 74 - 

 (c) Borrower shall have paid to Lender, concurrently with the closing of such Transfer,
(i) a non-refundable assumption fee in an amount equal to one percent (1.0%) of the then outstanding principal balance of the Note and (ii) all out-of-pocket costs and expenses, including reasonable attorneys’ fees, incurred by Lender in
connection with the transfer; 
  
 (d) Lender
shall have received evidence, acceptable to Lender in its sole discretion, that Mezzanine Lender has consented to the transfer of the Properties in its entirety to, and the related assumption of the Loan by the Transferee; 
  
 (e) Transferee assumes and agrees to pay the Debt as and
when due subject to the provisions of Article 15 hereof and, prior to or concurrently with the closing of such transfer, Transferee and its constituent partners, members or shareholders as Lender may require, shall execute, without any cost or
expense to Lender, such documents and agreements as Lender shall reasonably require to evidence and effectuate said assumption; 
  
 (f) Borrower and Transferee, without any cost to Lender, shall furnish any information requested by Lender for the preparation of, and
shall authorize Lender to file, new financing statements and financing statement amendments and other documents to the fullest extent permitted by applicable law, and shall execute any additional documents reasonably requested by Lender; 

 
 (g) Borrower shall have delivered to Lender, without any
cost or expense to Lender, such endorsements to Lender’s Title Insurance Policy insuring that fee simple and/or leasehold title to the Properties, as applicable, is vested in Transferee (subject to Permitted Encumbrances), hazard insurance
endorsements or certificates and other similar materials as Lender may deem necessary at the time of the transfer, all in form and substance satisfactory to Lender; 
  
 (h) Transferee shall have furnished to Lender, if Transferee is a corporation, partnership, limited
liability company or other entity, all appropriate papers evidencing Transferee’s organization and good standing, and the qualification of the signers to execute the assumption of the Debt, which papers shall include certified copies of all
documents relating to the organization and formation of Transferee and of the entities, if any, which are partners or members of Transferee. Transferee and such constituent partners, members or shareholders of Transferee (as the case may be), as
Lender shall require, shall comply with the covenants set forth in Article 6 hereof; 
  
 (i) Transferee shall assume the obligations of Borrower under any Management Agreement or provide a new management agreement with a new
manager which meets with the requirements of Section 5.14 hereof and assign to Lender as additional security such new management agreement; 
  
 (j) Transferee shall furnish an opinion of counsel satisfactory to Lender and its counsel (A) that Transferee’s formation documents
provide for the matters described in subparagraph (g) above, (B) that the assumption of the Debt has been duly authorized, executed and delivered, and that the Note, the Mortgages, this Agreement, the assumption agreement and the other Loan
Documents are valid, binding and enforceable against 

  

 - 75 - 

 
Transferee in accordance with their terms, (C) that Transferee and any entity which is a controlling stockholder, member or general partner of Transferee,
have been duly organized, and are in existence and good standing, and (E) with respect to such other matters as Lender may reasonably request; 
  
 (k) if required by Lender, Lender shall have received confirmation in writing from the Rating Agencies that rate the Securities to the
effect that the transfer will not result in a qualification, downgrade or withdrawal of any rating initially assigned or to be assigned to the Securities; 
  
 (l) Borrower’s obligations under the contract of sale pursuant to which the transfer is proposed to occur shall expressly be subject
to the satisfaction of the terms and conditions of this Section 7.5; and 
  
 (m) Transferee shall, prior to such transfer, deliver a substantive non-consolidation opinion to Lender, which opinion shall be in form, scope and substance acceptable in all respects to Lender and the Rating
Agencies. 
  
 A consent by Lender with respect to a transfer of the Properties in
their entirety to, and the related assumption of the Loan by, a Transferee pursuant to this Section 7.5 shall not be construed to be a waiver of the right of Lender to consent to any subsequent transfer of the Properties or any part thereof.

  
 Notwithstanding the foregoing, in no event shall Lender consent to any
assumption of the Loan occurring prior to a Securitization if the consideration to be paid by the transferee to Borrower, as determined by Lender, is less than $161,000,000.00. 
  
 ARTICLE 8 
 INSURANCE; CASUALTY; CONDEMNATION; RESTORATION 
  
 Section 8.1. INSURANCE. 
  
 (a) Borrower shall obtain and maintain, or cause to be maintained, at all times insurance for Borrower and each Individual Property providing at least the following coverages: 
  
 (i) comprehensive “all risk” insurance on the
Improvements and the Personal Property, in each case (A) in an amount equal to one hundred percent (100%) of the “Full Replacement Cost,” which for purposes of this Agreement shall mean actual replacement value (exclusive of costs of
excavations, foundations, underground utilities and footings) with a waiver of depreciation; (B) containing an agreed amount endorsement with respect to the Improvements and Personal Property waiving all co-insurance provisions; (C) providing for no
deductible in excess of $25,000 for all such insurance coverage; and (D) if any of the Improvements or the use of the Individual Property shall at any time constitute legal non-conforming structures or uses, providing coverage for contingent
liability from Operation of Building Laws, Demolition Costs and Increased Cost of 

  

 - 76 - 

 
Construction Endorsements and containing an “Ordinance or Law Coverage” or “Enforcement” endorsement. In addition, Borrower shall obtain:
(y) if any portion of the Improvements is currently or at any time in the future located in a “special flood hazard area” designated by the Federal Emergency Management Agency, flood hazard insurance in an amount equal to the maximum
amount of such insurance available under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended; and (z) earthquake insurance in amounts and in
form and substance reasonably satisfactory to Lender in the event the Individual Property is located in an area with a high degree of seismic risk, provided that the insurance pursuant to clauses (y) and (z) hereof shall be on terms consistent with
the comprehensive all risk insurance policy required under this subsection (i); 
  
 (ii) Commercial General Liability insurance against claims for personal injury, bodily injury, death or property damage occurring upon, in
or about the Individual Property, including “Dram Shop” or other liquor liability coverage if alcoholic beverages are sold from or may be consumed at the Individual Property with such insurance (A) to be on the so-called
“occurrence” form with a general aggregate limit of not less than $2,000,000 and a per occurrence limit of not less than $1,000,000; (B) to continue at not less than the aforesaid limit until required to be changed by Lender in writing by
reason of changed economic conditions making such protection inadequate; and (C) to cover at least the following hazards: (1) premises and operations; (2) products and completed operations; (3) independent contractors; (4) blanket contractual
liability; and (5) contractual liability covering the indemnities contained in Article 12 and Article 14 hereof to the extent the same is available; 
  
 (iii) loss of rents insurance or business income insurance, as applicable, (A) with loss payable to Lender; (B) covering all risks
required to be covered by the insurance provided for in subsection (i) above; and (C) which provides that after the physical loss to the Improvements and Personal Property occurs, the loss of rents or income, as applicable, will be insured until
completion of Restoration or the expiration of twenty-four (24) months, whichever first occurs, and notwithstanding that the policy may expire prior to the end of such period; and (D) which contains an extended period of indemnity endorsement which
provides that after the physical loss to the Improvements and Personal Property has been repaired, the continued loss of income will be insured until such income either returns to the same level it was at prior to the loss, or the expiration of
twelve (12) months from the date that such Individual Property is repaired or replaced and operations are resumed, whichever first occurs, and notwithstanding that the policy may expire prior to the end of such period. The amount of such loss of
rents or business income insurance, as applicable, shall be determined prior to the date hereof and at least once each year thereafter based on Borrower’s reasonable estimate of the gross income from such Individual Property for the succeeding
period of coverage required above. All proceeds payable to Lender pursuant to this subsection shall be held by Lender and shall be applied to the obligations secured by the Loan Documents from time to time due and payable hereunder and under the
Note and to pay Operating Expenses for each period as and when incurred; provided, however, that nothing herein contained shall be deemed to relieve Borrower of its obligations to pay the obligations secured by the 

  

 - 77 - 

 
Loan Documents on the respective dates of payment provided for in the Note, this Agreement and the other Loan Documents except to the extent such amounts are
actually paid out of the proceeds of such loss of rents or business income insurance, as applicable; 
  
 (iv) at all times during which structural construction, repairs or alterations are being made with respect to the Improvements, and only
if the Individual Property coverage form does not otherwise apply, (A) owner’s contingent or protective liability insurance covering claims not covered by or under the terms or provisions of the above mentioned commercial general liability
insurance policy; and (B) the insurance provided for in subsection (i) above written in a so-called Builder’s Risk Completed Value form (1) on a non-reporting basis, (2) against “all risks” insured against pursuant to subsection (i)
above, (3) including permission to occupy the Individual Property, and (4) with an agreed amount endorsement waiving co-insurance provisions; 
  
 (v) workers’ compensation, subject to the statutory limits of the State, and employer’s liability insurance in respect of any
work or operations on or about the Individual Property, or in connection with such Individual Property or its operation (if applicable); 
  
 (vi) comprehensive boiler and machinery insurance, if applicable, in amounts as shall be reasonably required by Lender on terms consistent
with the commercial property insurance policy required under subsection (i) above; 
  
 (vii) excess liability insurance in an amount not less than $75,000,000 per occurrence on terms consistent with the commercial general
liability insurance required under subsection (ii) above; 
  
 (viii) a blanket fidelity bond and errors and omissions insurance coverage insuring against losses resulting from dishonest or fraudulent acts committed by (A) Borrower’s personnel; (B) any employees of outside
firms that provide appraisal, legal, data processing or other services for Borrower or (C) temporary contract employees or student interns; 
  
 (ix) motor vehicle liability coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits
per occurrence, including umbrella coverage, of              Million and No/100 Dollars ($    ,000,000); and 
  
 (x) upon sixty (60) days’ written notice, such other
reasonable insurance and in such reasonable amounts as are required pursuant to any Franchise Agreement or as Lender from time to time may reasonably request against such other insurable hazards which at the time are commonly insured against for
property similar to such Individual Property located in or around the region in which such Individual Property is located. 
  
 With respect to the Policies required to be maintained pursuant to clauses (i) through (x) above, Borrower shall maintain insurance coverage against
Losses resulting from acts of terrorism. 
  

 - 78 - 

 (b) All insurance provided for in Section 8.1(a) shall be obtained under valid and
enforceable policies (collectively, the “Policies” or in the singular, the “Policy”), and shall be subject to the approval of Lender as to insurance companies, amounts, deductibles, loss payees and insureds. The
Policies shall be issued by financially sound and responsible insurance companies authorized to do business in the State and having a claims paying ability rating of “A” or better by S&P (or such other ratings approved by Lender)
and/or a general policy rating of “A” or better and a financial class of VIII or better by A.M. Best Company, Inc. The Policies described in Section 8.1(a) shall designate Lender and its successors and assigns as additional insureds,
mortgagees and/or loss payee as deemed appropriate by Lender. To the extent such Policies are not available as of the Closing Date, Borrower shall deliver certified copies of all Policies to Lender not later than thirty (30) days after the Closing
Date. Not less than ten (10) days prior to the expiration dates of the Policies theretofore furnished to Lender, renewal Policies accompanied by evidence satisfactory to Lender of payment of the premiums due thereunder (the “Insurance
Premiums”) shall be delivered by Borrower to Lender. 
  
 (c) Any blanket insurance Policy shall specifically allocate to the Individual Property the amount of coverage from time to time required hereunder and shall otherwise provide the same protection as would a separate
Policy insuring only such Individual Property in compliance with the provisions of Section 8.1(a). 
  
 (d) All Policies provided for or contemplated by Section 8.1(a), except for the Policy referenced in Section 8.1(a)(v), shall name
Borrower as the insured and Lender as the additional insured, as its interests may appear, and in the case of property damage, boiler and machinery, flood and earthquake insurance, shall contain a so-called New York standard non-contributing
mortgagee clause in favor of Lender providing that the loss thereunder shall be payable to Lender. 
  
 (e) All Policies provided for in Section 8.1(a) shall contain clauses or endorsements to the effect that: 
  
 (i) no act or negligence of Borrower, or anyone acting for
Borrower, or of any Tenant or other occupant, or failure to comply with the provisions of any Policy, which might otherwise result in a forfeiture of the insurance or any part thereof, shall in any way affect the validity or enforceability of the
insurance insofar as Lender is concerned; 
  
 (ii) the Policies shall not be materially changed (other than to increase the coverage provided thereby) or canceled without at least thirty (30) days’ prior written notice to Lender and any other party named therein as an additional
insured; 
  
 (iii) the issuers thereof shall give
written notice to Lender if the Policies have not been renewed thirty (30) days prior to its expiration; and 
  
 (iv) Lender shall not be liable for any Insurance Premiums thereon or subject to any assessments thereunder. 
  

 - 79 - 

 (f) If at any time Lender is not in receipt of written evidence that all insurance
required hereunder is in full force and effect, Lender shall have the right, without notice to Borrower, to take such action as Lender deems necessary to protect its interest in any Individual Property, including, without limitation, obtaining such
insurance coverage as Lender in its sole discretion deems appropriate. All premiums incurred by Lender in connection with such action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to Lender upon demand and, until
paid, shall be secured by the Mortgages and shall bear interest at the Default Rate. 
  
 Section 8.2. CASUALTY. 
  
 If any Individual Property shall be damaged or destroyed, in whole or in part, by fire or other casualty (a “Casualty”), Borrower shall give prompt notice of such damage to Lender and shall promptly
commence and diligently prosecute the Restoration of such Individual Property in accordance with Section 8.4, whether or not Lender makes any Net Proceeds available pursuant to Section 8.4. Borrower shall pay all costs of such Restoration whether or
not such costs are covered by insurance. Lender may, but shall not be obligated to make proof of loss if not made promptly by Borrower. Borrower shall adjust all claims for Insurance Proceeds in consultation with, and approval of, Lender; provided,
however, if an Event of Default has occurred and is continuing, Lender shall have the exclusive right to participate in the adjustment of all claims for Insurance Proceeds. 
  
 Section 8.3. CONDEMNATION. 
  
 Borrower shall promptly give Lender notice of the actual or threatened
commencement of any proceeding for the Condemnation of any Individual Property of which Borrower has knowledge and shall deliver to Lender copies of any and all papers served in connection with such proceedings. Lender may participate in any such
proceedings, and Borrower shall from time to time deliver to Lender all instruments requested by it to permit such participation. Borrower shall, at its expense, diligently prosecute any such proceedings, and shall consult with Lender, its attorneys
and experts, and cooperate with them in the carrying on or defense of any such proceedings. Notwithstanding any taking by any public or quasi-public authority through Condemnation or otherwise (including but not limited to any transfer made in lieu
of or in anticipation of the exercise of such taking), Borrower shall continue to pay the Debt at the time and in the manner provided for its payment in the Note and in this Agreement and the Debt shall not be reduced until any Award shall have been
actually received and applied by Lender, after the deduction of expenses of collection, to the reduction or discharge of the Debt. Lender shall not be limited to the interest paid on the Award by the condemning authority but shall be entitled to
receive out of the Award interest at the rate or rates provided herein or in the Note. If any Individual Property or any portion thereof is taken by a condemning authority, Borrower shall promptly commence and diligently prosecute the Restoration of
such Individual Property and otherwise comply with the provisions of Section 8.4, whether or not Lender makes any Net Proceeds available pursuant to Section 8.4. If an Individual Property is sold, through foreclosure or otherwise, prior to the
receipt by Lender of the Award, Lender shall have the right, whether or not a deficiency judgment on the Note shall have been sought, recovered or denied, to receive the Award, or a portion thereof sufficient to pay the Debt. If the Lien of a
Mortgage is released with respect to an Individual Property in accordance with Section 2.5 hereof, Lender shall thereafter 

  

 - 80 - 

 
have no rights to receive any Award subsequently issued in connection with such Individual Property. 
  
 Section 8.4. RESTORATION. 
  
 The following provisions shall apply in connection with the Restoration of
each Individual Property: 
  
 (a) If the Net
Proceeds shall be less than (i) $500,000.00 with respect to any Individual Property located in Atlanta, Georgia or Pittsburgh, Pennsylvania or (ii) $250,000.00 with respect to any Individual Property other than the Individual Property located in
Atlanta, Georgia or Pittsburgh, Pennsylvania, and the costs of completing the Restoration shall be less than (x) $500,000.00 with respect to any Individual Property located in Atlanta, Georgia or Pittsburgh, Pennsylvania or (y) $250,000.00 with
respect to any Individual Property other than the Individual Property located in Atlanta, Georgia or Pittsburgh, Pennsylvania, the Net Proceeds will be disbursed by Lender to Borrower upon receipt, provided that all of the conditions set forth in
Section 8.4(b)(i) are met and Borrower delivers to Lender a written undertaking to expeditiously commence and to satisfactorily complete with due diligence the Restoration in accordance with the terms of this Agreement. 
  
 (b) If the Net Proceeds are equal to or greater than (i)
$500,000.00 with respect to any Individual Property located in Atlanta, Georgia or Pittsburgh, Pennsylvania or (ii) $250,000.00 with respect to any Individual Property other than the Individual Property located in Atlanta, Georgia or Pittsburgh,
Pennsylvania or the costs of completing the Restoration are equal to or greater than (x) $500,000.00 with respect to any Individual Property located in Atlanta, Georgia or Pittsburgh, Pennsylvania or (y) $250,000.00 with respect to any Individual
Property other than the Individual Property located in Atlanta, Georgia or Pittsburgh, Pennsylvania, Lender shall make the Net Proceeds available for the Restoration in accordance with the provisions of this Section 8.4. The term “Net
Proceeds” for purposes of this Section 8.4 shall mean: (i) the net amount of all insurance proceeds received by Lender pursuant to Section 8.1(a)(i), (iv), (vi) and (vii) as a result of a Casualty, after deduction of its reasonable costs
and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting the same (“Insurance Proceeds”), or (ii) the net amount of the Award as a result of a Condemnation, after deduction of its reasonable costs
and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting the same (“Condemnation Proceeds”), whichever the case may be. 
  
 (i) The Net Proceeds shall be made available to Borrower for Restoration provided that each of the following
conditions are met: 
  
 (A) no Event of Default
shall have occurred and be continuing; 
  
 (B)
(1) in the event the Net Proceeds are Insurance Proceeds, less than twenty-five percent (25%) of the total floor area of the Improvements on any Individual Property has been damaged, destroyed or rendered unusable as a result of a Casualty or (2) in
the event the Net Proceeds are Condemnation Proceeds, less than ten percent (10%) of the land constituting any Individual Property is 

  

 - 81 - 

 
taken, such land is located along the perimeter or periphery of such Individual Property, and no portion of the hotel buildings or any ancillary Improvements
which, if taken, would have a Material Adverse Effect on the use, occupancy or value of the applicable Individual Property; 
  
 (C) The Operating Lease shall remain in full force and effect during and after the completion of the Restoration; 
  
 (D) Borrower shall commence the Restoration as soon as
reasonably practicable (but in no event later than ninety (90) days after such Casualty or Condemnation, whichever the case may be, occurs) and shall diligently pursue the same to satisfactory completion and in accordance with the terms and
conditions of the Franchise Agreement; 
  
 (E)
Lender shall be satisfied that any operating deficits, including all scheduled payments of principal and interest under the Note, which will be incurred with respect to an Individual Property as a result of the occurrence of any such Casualty or
Condemnation, whichever the case may be, will be covered out of the insurance coverage referred to in Section 8.1(a)(iii) above; 
  
 (F) Lender shall be satisfied that the Restoration will be completed on or before the earliest to occur of (1) six (6) months prior to
the Maturity Date, (2) the earliest date required for such completion under the terms of any Major Leases or material agreements affecting the Individual Property, (3) such time as may be required under applicable zoning law, ordinance, rule or
regulation, (4) the expiration of the insurance coverage referred to in Section 8.1(a)(iii) or (5) the date required for such completion pursuant to the Franchise Agreement; 
  
 (G) the Individual Property and the use thereof after the Restoration will be in compliance with and
permitted under all Legal Requirements; 
  
 (H)
the Restoration shall be done and completed by Borrower in an expeditious and diligent fashion and in compliance with all applicable Legal Requirements; 
  
 (I) such Casualty or Condemnation, as applicable, does not result in the loss of access to the Individual Property or the Improvements;

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

 - 82 - 

 (L) the Franchise Agreement is not terminated as a result of such casualty. 

 
 (ii) The Net Proceeds shall be held by Lender until
disbursements commence, and, until disbursed in accordance with the provisions of this Section 8.4, shall constitute additional security for the Debt and other obligations under the Loan Documents. The Net Proceeds shall be disbursed by Lender to,
or as directed by, Borrower from time to time during the course of the Restoration, upon receipt of evidence satisfactory to Lender that (A) all the conditions precedent to such advance, including those set forth in Section 8.4(b)(i), have been
satisfied, (B) all materials installed and work and labor performed (except to the extent that they are to be paid for out of the requested disbursement) in connection with the related Restoration item have been paid for in full, and (C) there exist
no notices of pendency, stop orders, mechanic’s or materialman’s liens or notices of intention to file same, or any other liens or encumbrances of any nature whatsoever on the Individual Property which have not either been fully bonded to
the satisfaction of Lender and discharged of record or in the alternative fully insured to the satisfaction of Lender by the title company issuing the Title Insurance Policy. Notwithstanding the foregoing, Insurance Proceeds from the Policies
required to be maintained by Borrower pursuant to Section 8.1(a)(iii) shall be controlled by Lender at all times, shall not be subject to the provisions of this Section 8.4 and shall be used solely for the payment of the obligations under the Loan
Documents and Operating Expenses. 
  
 (iii) All
plans and specifications required in connection with the Restoration shall be subject to prior review and acceptance in all respects by Lender and by an independent consulting engineer reasonably selected by Lender (the “Restoration
Consultant”). Lender shall have the use of the plans and specifications and all permits, licenses and approvals required or obtained in connection with the Restoration. The identity of the contractors, subcontractors and materialmen engaged
in the Restoration, as well as the contracts in excess of $125,000 under which they have been engaged, shall be subject to prior review and acceptance by Lender and the Restoration Consultant. All costs and expenses incurred by Lender in connection
with making the Net Proceeds available for the Restoration, including, without limitation, reasonable counsel fees and disbursements and the Restoration Consultant’s fees, shall be paid by Borrower. 
  
 (iv) In no event shall Lender be obligated to make
disbursements of the Net Proceeds in excess of an amount equal to the costs actually incurred from time to time for work in place as part of the Restoration, as certified by the Restoration Consultant, minus the Restoration Retainage. The term
“Restoration Retainage” shall mean an amount equal to ten percent (10%) of the costs actually incurred for work in place as part of the Restoration, as certified by the Restoration Consultant, until the Restoration has been completed. The
Restoration Retainage shall be reduced to five percent (5%) of the costs incurred upon receipt by Lender of satisfactory evidence that fifty percent (50%) of the Restoration has been completed. The Restoration Retainage shall in no event, and
notwithstanding anything to the contrary set forth above in this Section 8.4(b), be less than the amount actually held back by Borrower from contractors, subcontractors and materialmen engaged in the Restoration. The Restoration Retainage shall not
be released until the Restoration Consultant certifies to Lender that the Restoration has been 

  

 - 83 - 

 
completed in accordance with the provisions of this Section 8.4(b) and that all approvals necessary for the re-occupancy and use of the Individual Property
have been obtained from all appropriate Governmental Authorities, and Lender receives evidence satisfactory to Lender that the costs of the Restoration have been paid in full or will be paid in full out of the Restoration Retainage; provided,
however, that Lender will release the portion of the Restoration Retainage being held with respect to any contractor, subcontractor or materialman engaged in the Restoration as of the date upon which the Restoration Consultant certifies to Lender
that the contractor, subcontractor or materialman has satisfactorily completed all work and has supplied all materials in accordance with the provisions of the contractor’s, subcontractor’s or materialman’s contract, the contractor,
subcontractor or materialman delivers the lien waivers and evidence of payment in full of all sums due to the contractor, subcontractor or materialman as may be reasonably requested by Lender or by the title company issuing the Title Insurance
Policy, and Lender receives an endorsement to the Title Insurance Policy insuring the continued priority of the lien of the Mortgages and evidence of payment of any premium payable for such endorsement. If required by Lender, the release of any such
portion of the Restoration Retainage shall be approved by the surety company, if any, which has issued a payment or performance bond with respect to the contractor, subcontractor or materialman. 
  
 (v) Lender shall not be obligated to make disbursements of
the Net Proceeds more frequently than once every calendar month. 
  
 (vi) If at any time the Net Proceeds or the undisbursed balance thereof shall not, in the reasonable opinion of Lender in consultation with the Restoration Consultant, be sufficient to pay in full the balance of the
costs which are estimated by the Restoration Consultant to be incurred in connection with the completion of the Restoration, Borrower shall deposit the deficiency (the “Net Proceeds Deficiency”) with Lender before any further
disbursement of the Net Proceeds shall be made. The Net Proceeds Deficiency deposited with Lender shall be held by Lender and shall be disbursed for costs actually incurred in connection with the Restoration on the same conditions applicable to the
disbursement of the Net Proceeds, and until so disbursed pursuant to this Section 8.4(b) shall constitute additional security for the Debt and other obligations under the Loan Documents. 
  
 (vii) The excess, if any, of the Net Proceeds and the remaining balance, if any, of the Net Proceeds
Deficiency deposited with Lender after the Restoration Consultant certifies to Lender that the Restoration has been completed in accordance with the provisions of this Section 8.4(b), and the receipt by Lender of evidence satisfactory to Lender that
all costs incurred in connection with the Restoration have been paid in full, shall be remitted by Lender to Borrower, provided no Event of Default shall have occurred and shall be continuing under the Note, this Agreement or any of the other Loan
Documents. 
  
 (c) All Net Proceeds not required
(i) to be made available for the Restoration or (ii) to be returned to Borrower as excess Net Proceeds pursuant to Section 8.4(b)(vii) may (x) be retained and applied by Lender toward the payment of the Debt whether or not then due and 

  

 - 84 - 

 
payable in such order, priority and proportions as Lender in its sole discretion shall deem proper, or, (y) at the sole discretion of Lender, the same may be
paid, either in whole or in part, to Borrower for such purposes and upon such conditions as Lender shall designate. 
  
 (d) In the event of foreclosure of any Mortgage, or other transfer of title to any Individual Property in extinguishment in whole or in
part of the Debt, all right, title and interest of Borrower in and to the Policies then in force concerning such Individual Property and all proceeds payable thereunder shall thereupon vest in the purchaser at such foreclosure, Lender or other
transferee in the event of such other transfer of title. 
  
 ARTICLE 9 
 RESERVE FUNDS 
  
 Section 9.1. REQUIRED REPAIRS. 
  
 (a) Borrower shall make the repairs and improvements to each Individual Property set forth on Schedule I and
as more particularly described in the applicable Physical Conditions Report prepared in connection with the closing of the Loan (such repairs hereinafter referred to as “Required Repairs”). Borrower shall complete the Required
Repairs in a good and workmanlike manner on or before the date that is twelve (12) months from the date hereof or within such other time frame for completion specifically set forth on Schedule I. 
  
 (b) Borrower shall establish on the date hereof an Eligible
Account with Lender or Lender’s agent to fund the Required Repairs (the “Required Repair Account”) into which Borrower shall deposit on the date hereof the amount of $526,153.00, which amount equals 100% of the estimated cost
for the completion of the Required Repairs. Amounts so deposited shall hereinafter be referred to as the “Required Repair Funds.” 
  
 Section 9.2. REPLACEMENTS. 
  

(a) On an ongoing basis throughout the term of the Loan, Borrower shall (1) make capital repairs, replacements and improvements
necessary to keep each Individual Property in good order and repair and in a good marketable condition or prevent deterioration of such Individual Property, including, but not limited to, those repairs, replacements and improvements more
particularly described on Schedule II attached hereto and made a part hereof and (2) purchase, replace and/or install FF&E necessary to keep the Property in good order and repair and in a good marketable condition (collectively, the
“Replacements”). Borrower shall complete all Replacements in a good and workmanlike manner as soon as commercially reasonable after commencing to make each such Replacement. 
  
 (b) Borrower shall establish on the date hereof an Eligible
Account with Lender or Lender’s agent to fund the Replacements (the “Replacement Reserve Account”) into which Borrower shall deposit on the date hereof
$                    . In addition, Borrower shall deposit the Replacement Reserve Monthly Deposit into the Replacement Reserve Account on
each Payment Date. Amounts so deposited shall hereinafter be referred to as 

  

 - 85 - 

 
“Replacement Reserve Funds.” Lender may, in its reasonable discretion, adjust the Replacement Reserve Monthly Deposit from time to time to
an amount sufficient to maintain the proper maintenance and operation of the Properties. In the event Lender shall at any time increase the Replacement Reserve Monthly Deposit, Borrower may, at its election, request that Lender obtain, at the sole
cost and expense of Borrower, a Physical Conditions Report prepared by an engineer selected by Lender in its reasonable discretion, in which case the Replacement Reserve Monthly Deposit shall be adjusted by Lender based on the results of such
report, provided that in no event shall such amounts be reduced below the current amount of the Replacement Reserve Monthly Deposit set forth in herein. 
  
 The term “Replacement Reserve Monthly Deposit” shall mean the quotient obtained by dividing (i) the Annual
Replacement Reserve Requirement, by (ii) twelve (12). Except as provided in the preceding paragraph, the Replacement Reserve Monthly Deposit shall be adjusted annually by Lender on the Payment Date occurring in April of each calendar year (the
“Annual Adjustment Date”) (as reflected in Borrower’s annual operating statements as delivered to Lender pursuant to this Agreement in good faith). 
  
 (c) Notwithstanding the foregoing, in lieu of making any Replacement Reserve Monthly Deposits, Borrower
shall have the one-time right, either on the date hereof or during the term of the Loan, to deliver to Lender a Letter of Credit in an amount equal to the product of six (6) times the then current Replacement Reserve Monthly Deposit. Upon
Lender’s receipt of such Letter of Credit, Borrower’s obligations to make the Replacement Reserve Monthly Deposits shall be suspended until such time as either the Debt is paid in full or Lender draws on the Letter of Credit pursuant to
the term hereof. Upon adjustment of the Replacement Reserve Monthly Deposit on each Annual Adjustment Date, the amount of the Letter of Credit shall be increased (or may be decreased, as applicable) so that such amount of the Letter of Credit after
such adjustment equals the product of six (6) times the adjusted Replacement Reserve Monthly Deposit. In the event that the amount of the Letter of Credit shall be adjusted upwards, Borrower shall cause the Letter of Credit to be so increased upon
ten (10) Business Days demand by Lender. In the event that that the amount of the Letter of Credit may be adjusted downwards, provided no Event of Default exists, Lender shall either release the Letter of Credit to Borrower upon receipt by Lender of
a replacement Letter of Credit in an amount required pursuant to this subsection (c) or permit the Letter of Credit to be amended to reflect the lower amount. The Letter of Credit shall be held by Lender for the term of the Loan and shall not be
subject to any reduction other than as set forth herein or in connection with a Lender draw thereunder pursuant to the terms hereof. Upon the occurrence and during the continuance of an Event of Default, Lender shall have the right to draw upon the
Letter of Credit and apply the proceeds therefrom for any purpose as set forth in Section 9.11(f). 
  
 (d) In the event that Borrower has elected to deliver the Letter of Credit to Lender pursuant to the terms of subsection (c) above,
Borrower shall have a one-time right to obtain a release of the Letter of Credit provided Borrower delivers to Lender a cash deposit in an amount equal to the amount of the Letter of Credit required pursuant to subsection (c) as of the date of the
delivery of such cash deposit (the “Replacement Letter of Credit Cash Deposit”). The Replacement Letter of Credit Cash Deposit shall be deposited into the Replacement Reserve Account. Upon Lender’s receipt of such Replacement Letter
of Credit 

  

 - 86 - 

 
Cash Deposit, Borrower’s obligations to make the Replacement Reserve Monthly Deposits shall continue to be suspended until such time as the Debt is paid
in full. Upon adjustment of the Replacement Reserve Monthly Deposit on each Annual Adjustment Date, the amount of the Replacement Letter of Credit Cash Deposit shall be increased (or may be decreased, as applicable) so that such amount of the
Replacement Letter of Credit Cash Deposit after such adjustment equals the product of six (6) times the adjusted Replacement Reserve Monthly Deposit. In the event that the amount of the Replacement Letter of Credit Cash Deposit shall be adjusted
upwards, Borrower shall deposit with Lender an additional cash deposit in the amount of such increase upon ten (10) days demand by Lender. In the event that that the amount of the Replacement Letter of Credit Cash Deposit may be adjusted downwards,
provided no Event of Default exists, Lender shall, upon written request from Lender, release a portion of the Replacement Letter of Credit Cash Deposit in amount equal to such difference. The Replacement Letter of Credit Cash Deposit shall be held
by Lender for the term of the Loan and shall not be subject to any disbursement or reduction other than as set forth in this subsection (d). Upon the occurrence and during the continuance of an Event of Default, Lender shall have the same rights
with respect to the Replacement Letter of Credit Cash Deposit that it has with respect to any other Reserve Funds. 
  
 Section 9.3. INTENTIONALLY DELETED. 
  
 Section 9.4. REQUIRED WORK. 
  
 Borrower shall diligently pursue all Required Repairs and Replacements
(collectively, the “Required Work”) to completion in accordance with the following requirements: 
  
 (a) Lender reserves the right, at its option, to approve all contracts or work orders with materialmen, mechanics, suppliers,
subcontractors, contractors or other parties providing labor or materials in connection with the Required Work to the extent such contracts or work orders exceed $125,000. Upon Lender’s request, Borrower shall collaterally assign any contract
or subcontract to Lender. 
  
 (b) In the event
Lender determines in its reasonable discretion that any Required Work is not being or has not been performed in a workmanlike or timely manner, Lender shall have the option to withhold disbursement (if applicable) for such unsatisfactory Required
Work and to proceed under existing contracts or to contract with third parties to complete such Required Work and to apply the Required Repair Funds or the Replacement Reserve Funds, as applicable, toward the labor and materials necessary to
complete such Required Work, without providing any prior notice to Borrower and to exercise any and all other remedies available to Lender upon an Event of Default hereunder. 
  
 (c) In order to facilitate Lender’s completion of the Required Work in accordance with paragraph (b) of
this Section 9.4, Borrower grants Lender the right to enter onto the Properties and perform any and all work and labor necessary to complete the Required Work and/or employ watchmen to protect the Properties from damage. All sums so expended by
Lender, to the extent not from the Reserve Funds (if applicable), shall be deemed to have been advanced under the Loan to Borrower and secured by the Mortgages. For this purpose Borrower constitutes and appoints Lender its true and lawful
attorney-in-fact with full power 

  

 - 87 - 

 
of substitution to complete or undertake the Required Work in the name of Borrower upon Borrower’s failure to do so in a workmanlike and timely manner.
Such power of attorney shall be deemed to be a power coupled with an interest and cannot be revoked. Borrower empowers said attorney-in-fact as follows: (i) if applicable, to use any of the Reserve Funds for the purpose of making or completing the
Required Work; (ii) to make such additions, changes and corrections to the Required Work as shall be necessary or desirable to complete the Required Work; (iii) to employ such contractors, subcontractors, agents, architects and inspectors as shall
be required for such purposes; (iv) to pay, settle or compromise all existing bills and claims which are or may become Liens against any Individual Property, or as may be necessary or desirable for the completion of the Required Work, or for
clearance of title; (v) to execute all applications and certificates in the name of Borrower which may be required by any of the contract documents; (vi) to prosecute and defend all actions or proceedings in connection with the Properties or the
rehabilitation and repair of the Properties; and (vii) to do any and every act which Borrower might do on its own behalf to fulfill the terms of this Agreement. 
  
 (d) Nothing in this Section 9.4 shall: (i) make Lender responsible for making or completing the Required
Work; (ii) require Lender to expend funds in addition to the Reserve Funds (if applicable) to make or complete any Required Work; (iii) obligate Lender to proceed with the Required Work; or (iv) obligate Lender to demand from Borrower additional
sums to make or complete any Required Work. 
  
 (e) Borrower shall permit Lender and Lender’s agents and representatives (including, without limitation, Lender’s engineer, architect, or inspector) or third parties performing Required Work pursuant to this Section 9.4 to enter
onto the Properties during normal business hours (subject to the rights of tenants under their Leases) to inspect the progress of any Required Work and all materials being used in connection therewith, to examine all plans and shop drawings relating
to such Required Work which are or may be kept at the Properties, and to complete any Required Work made pursuant to this Section 9.4. Borrower shall cause all contractors and subcontractors to cooperate with Lender and Lender’s representatives
or such other persons described above in connection with inspections described in this Section 9.4 or the completion of Required Work pursuant to this Section 9.4. 
  
 (f) If applicable, Lender may, to the extent any Required Work would reasonably require an inspection of the
Properties, inspect the Properties at Borrower’s expense prior to making a disbursement of the Reserve Funds in order to verify completion of the Required Work for which reimbursement is sought. Borrower shall pay Lender a reasonable inspection
fee not exceeding $1,000 for each such inspection. Lender may require that such inspection be conducted by an appropriate independent qualified professional selected by Lender and/or may require a copy of a certificate of completion by an
independent qualified professional acceptable to Lender prior to the disbursement of the Reserve Funds. Borrower shall pay the expense of the inspection as required hereunder, whether such inspection is conducted by Lender or by an independent
qualified professional. 
  
 (g) The Required Work
and all materials, equipment, fixtures, or any other item comprising a part of any Required Work shall be constructed, installed or completed, as 

  

 - 88 - 

 
applicable, free and clear of all mechanic’s, materialman’s or other Liens (except for Permitted Encumbrances). 
  
 (h) If applicable, before each disbursement of the Reserve
Funds, Lender may require Borrower to provide Lender with a search of title to the Properties effective to the date of the disbursement, which search shows that no mechanic’s or materialmen’s or other Liens of any nature have been placed
against the Properties since the date of recordation of the Mortgages and that title to the Properties is free and clear of all Liens (except for Permitted Encumbrances). 
  
 (i) All Required Work shall comply with all Legal Requirements and applicable insurance requirements
including, without limitation, applicable building codes, special use permits, environmental regulations, and requirements of insurance underwriters. 
  
 (j) Borrower hereby assigns to Lender all rights and claims Borrower may have against all Persons supplying labor or materials in
connection with the Required Work; provided, however, that Lender may not pursue any such rights or claims unless an Event of Default has occurred and remains uncured. 
  
 Section 9.5. RELEASE OF RESERVE FUNDS.

  
 (a) Upon written request from Borrower and
satisfaction of the requirements set forth in this Agreement, Lender shall disburse to Borrower amounts from (i) the Required Repair Account to the extent necessary to pay for or reimburse Borrower for the actual costs of each Required Repair (but
not exceeding 125% of the original estimated cost of such Required Repair as set forth on Schedule I, unless Lender has agreed to pay or reimburse Borrower for such excess cost pursuant to Section 9.5(f)) or (ii) the Replacement Reserve Account to
the extent necessary to pay or reimburse Borrower for the actual costs of any approved Replacements. Notwithstanding the preceding sentence, in no event shall Lender be required to (x) disburse any amounts which would cause the amount of funds
remaining in the Required Repair Account after any disbursement (other than with respect to the final disbursement) to be less than 100% of the then current estimated cost of completing all remaining Required Repairs for the Properties, (y) disburse
funds from any of the Reserve Accounts if an Event of Default exists, or (z) disburse funds from the Replacement Reserve Account to pay or reimburse Borrower for the costs of routine repairs or maintenance to the Properties or for costs which are to
be paid or reimbursed from funds held in the Required Repair Account. 
  
 (b) Each request for disbursement from any of the Reserve Accounts shall be on a form provided or approved by Lender and shall (i) include copies of invoices for all items or materials purchased and all labor or
services provided and (ii) specify (A) the Required Work for which the disbursement is requested, (B) the quantity and price of each item purchased, if the Required Work includes the purchase or replacement of specific items, (C) the price of all
materials (grouped by type or category) used in any Required Work other than the purchase or replacement of specific items, and (D) the cost of all contracted labor or other services applicable to each Required Work for which such request for
disbursement is made. With each request Borrower shall certify that all Required Work has been performed in accordance 

  

 - 89 - 

 
with all Legal Requirements. Except as provided in Section 9.5(d), each request for disbursement shall be made only after completion of the Required Repair,
Replacement (or the portion thereof completed in accordance with Section 9.5(d)), or the full performance by the leasing agent of its obligations (in the case of Leasing Commissions), as applicable, for which disbursement is requested. Borrower
shall provide Lender evidence satisfactory to Lender in its reasonable judgment of such completion or performance. 
  
 (c) Borrower shall pay all invoices in connection with the Required Work with respect to which a disbursement is requested prior to
submitting such request for disbursement from the Reserve Accounts or, at the request of Borrower, Lender will issue joint checks, payable to Borrower and the contractor, supplier, materialman, mechanic, subcontractor or other party to whom payment
is due in connection with the Required Work. In the case of payments made by joint check, Lender may require a waiver of lien from each Person receiving payment prior to Lender’s disbursement of the Reserve Funds. In addition, as a condition to
any disbursement, Lender may require Borrower to obtain lien waivers from each contractor, supplier, materialman, mechanic or subcontractor who receives payment in an amount equal to or greater than $10,000 for completion of its work or delivery of
its materials. Any lien waiver delivered hereunder shall conform to all Legal Requirements and shall cover all work performed and materials supplied (including equipment and fixtures) for any Individual Property by that contractor, supplier,
subcontractor, mechanic or materialman through the date covered by the current disbursement request (or, in the event that payment to such contractor, supplier, subcontractor, mechanic or materialmen is to be made by a joint check, the release of
lien shall be effective through the date covered by the previous release of funds request). 
  
 (d) If (i) the contractor performing such Required Work requires periodic payments pursuant to terms of a written contract, and (ii)
Lender has approved in writing in advance such periodic payments, a request for disbursement from the Reserve Accounts may be made after completion of a portion of the work under such contract, provided (A) such contract requires payment upon
completion of such portion of work, (B) the materials for which the request is made are on site at the applicable Individual Property and are properly secured or have been installed in such Individual Property, (C) all other conditions in this
Agreement for disbursement have been satisfied, and (D) in the case of a Replacement, funds remaining in the Replacement Reserve Account are, in Lender’s judgment, sufficient to complete such Replacement and other Replacements when required.

  
 (e) Borrower shall not make a request for,
nor shall Lender have any obligation to make, any disbursement from any Reserve Account more frequently than once in any calendar month and (except in connection with the final disbursement) in any amount less than the lesser of (i) $10,000 or (ii)
the total cost of the Required Work for which the disbursement is requested. 
  
 (f) In the event any Borrower requests a disbursement from the Required Repair Account to pay or reimburse Borrower for the actual cost of labor or materials used in connection with repairs or improvements other than
the Required Repairs specified on Schedule I, or for a Required Repair to the extent the cost of such Required Repair exceeds 125% of the estimated cost of such Required Repair as set forth on Schedule I (in either case, 

  

 - 90 - 

 
an “Additional Required Repair”), Borrower shall disclose in writing to Lender the reason why funds in the Required Repair Account should be used
to pay for such Additional Required Repair. If Lender determines that (i) such Additional Required Repair is of the type intended to be covered by the Required Repair Account, (ii) such Additional Required Repair is not covered or is not of the type
intended to be covered by the Replacement Reserve Account, (iii) costs for such Additional Required Repair are reasonable, (iv) the funds in the Required Repair Account are sufficient to pay for such Additional Required Repair and all other Required
Repairs for the Properties specified on Schedule I, and (v) all other conditions for disbursement under this Agreement have been met, Lender shall disburse funds from the Required Repair Account. 
  
 (g) In the event any Borrower requests a disbursement from
the Replacement Reserve Account to pay or reimburse Borrower for the actual cost of labor or materials used in connection with repairs or improvements other than the Replacements specified in the Physical Conditions Report or on Schedule II prepared
in connection with the closing of the Loan (an “Additional Replacement”), Borrower shall disclose in writing to Lender the reason why funds in the Replacement Reserve Account should be used to pay for such Additional Replacement. If
Lender determines that (i) such Additional Replacement is of the type intended to be covered by the Replacement Reserve Account, (ii) such Additional Replacement is not covered or is not of the type intended to be covered by the Required Repair
Account, (iii) costs for such Additional Replacement are reasonable, (iv) the funds in the Replacement Reserve Account are sufficient to pay for such Additional Replacement and all other Replacements for the Properties specified in the Physical
Conditions Report, and (v) all other conditions for disbursement under this Agreement have been met, Lender shall disburse funds from the Replacement Reserve Account. 
  
 (h) Lender’s disbursement of any Reserve Funds or other acknowledgment of completion of any Required
Work in a manner satisfactory to Lender shall not be deemed a certification or warranty by Lender to any Person that the Required Work has been completed in accordance with Legal Requirements. 
  
 (i) If the funds in any Reserve Account should exceed the
amount of payments actually applied by Lender for the purposes of the account, Lender in its sole discretion shall either return any excess to Borrower or credit such excess against future payments to be made to that Reserve Account. In allocating
any such excess, Lender may deal with the Person shown on Lender’s records as being the owner of the applicable Individual Property. If at any time Lender reasonably determines that the Reserve Funds are not or will not be sufficient to make
the required payments, Lender shall notify Borrower of such determination and Borrower shall pay to Lender any amount necessary to make up the deficiency within ten (10) days after notice from Lender to Borrower requesting payment thereof.

  
 (j) The insufficiency of any balance in any
of the Reserve Accounts shall not relieve Borrower from its obligation to fulfill all preservation and maintenance covenants in the Loan Documents. 
  
 (k) Upon the earlier to occur of (i) the timely completion of all Required Repairs and any Additional Required Repairs, if any, in
accordance with the requirements of this 

  

 - 91 - 

 
Agreement, as verified by Lender in its reasonable discretion, or (ii) the payment in full of the Debt, all amounts remaining on deposit, if any, in the
Required Repair Account shall be returned to Borrower or the Person shown on Lender’s records as being the owner of the applicable Individual Property and no other party shall have any right or claim thereto. 
  
 (l) Upon payment in full of the Debt, all amounts remaining
on deposit, if any, in the Replacement Reserve Account shall be returned to Borrower or the Person shown on Lender’s records as being the owner of the Properties and no other party shall have any right or claim thereto. 
  
 (m) The provisions of this Section 9.5 shall not be
applicable with respect to the Replacement Reserve Funds in the event Borrower delivers to Lender a Letter of Credit or the Replacement Letter of Credit Cash Deposit in accordance with Section 9.2 hereof. 
  
 (n) Provided Borrower has submitted to Lender all
information as may be requested by Lender in which to determine whether to grant any approval required pursuant to this Section 9.5 or to make a disbursement from any reserve account established pursuant to this Article 9, Lender shall use its
commercially reasonable efforts (acting in good faith) to respond as promptly as reasonably possible to any request by Borrower for such approval or disbursement; provided, however, that Lender’s failure to respond promptly shall not (i)
negate, impair or otherwise adversely affect any rights Lender may have pursuant to the Loan Documents and (ii) be deemed to be an approval by Lender of the requested matter or an agreement by Lender to make such disbursement (or reduction or
release, as applicable). 
  
 Section 9.6. TAX
AND INSURANCE RESERVE FUNDS. 
  
 Borrower shall establish on the date hereof an Eligible Account with Lender or Lender’s agent sufficient to discharge Borrower’s obligations for
the payment of Taxes and Insurance Premiums pursuant to Section 5.4 and Section 8.1 hereof (the “Tax and Insurance Reserve Account”) into which Borrower shall deposit on the date hereof
$            , which amount, when added to the required monthly deposits set forth in the next sentence, is sufficient to make the payments of Taxes and Insurance Premiums as
required herein. Borrower shall deposit into the Tax and Insurance Reserve Account on each Payment Date (a) one-twelfth of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months or such higher amount necessary to
accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to the earlier of (i) the date that the same will become delinquent and (ii) the date that additional charges or interest will accrue due to the
non-payment thereof, and (b) except to the extent Lender has waived the insurance escrow because the insurance required hereunder is maintained under a blanket insurance Policy acceptable to Lender in accordance with Section 8.1(c), one-twelfth of
the Insurance Premiums that Lender estimates will be payable during the next ensuing twelve (12) months for the renewal of the coverage afforded by the Policies upon the expiration thereof or such higher amount necessary to accumulate with Lender
sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies (said amounts in (a) and (b) above hereinafter called the “Tax and Insurance Reserve Funds”). Lender will apply
the Tax and Insurance Reserve Funds to payments of Taxes and Insurance Premiums required to be made by Borrower pursuant to Section 5.4 and Section 8.1 hereof. In making any disbursement from the Tax and Insurance Reserve Account, Lender may 

  

 - 92 - 

 
do so according to any bill, statement or estimate procured from the appropriate public office or tax lien service (with respect to Taxes) or insurer or
agent (with respect to Insurance Premiums), without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof. If the amount of the Tax and
Insurance Reserve Funds shall exceed the amounts due for Taxes and Insurance Premiums pursuant to Section 5.4 and Section 8.1 hereof, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future payments
to be made to the Tax and Insurance Reserve Account. In allocating any such excess, Lender may deal with the person shown on Lender’s records as being the owner of the Properties. Any amount remaining in the Tax and Insurance Reserve Account
after the Debt has been paid in full shall be returned to Borrower or the person shown on Lender’s records as being the owner of the Properties and no other party shall have any right or claim thereto. If at any time Lender reasonably
determines that the Tax and Insurance Reserve Funds are not or will not be sufficient to pay Taxes and Insurance Premiums by the dates set forth in (a) and (b) above, Lender shall notify Borrower of such determination and Borrower shall pay to
Lender any amount necessary to make up the deficiency within ten (10) days after notice from Lender to Borrower requesting payment thereof. 
  
 Section 9.7. INTENTIONALLY DELETED. 
  
 Section 9.8. INTENTIONALLY
DELETED. 
  
 Section 9.9.
INTENTIONALLY DELETED. 
  
 Section 9.10. OPERATING EXPENSES; EXTRAORDINARY EXPENSES. 
  
 (a) Borrower shall establish on the date hereof an Eligible Account with Lender or Lender’s agent into
which Borrower shall deposit, on each Payment Date during any Lockbox Cash Flow Sweep Period, funds sufficient to pay all Operating Expenses required to be incurred during the following month in accordance with the Annual Budget approved by Lender
(the “Operating Expense Reserve Account.”) Amounts so deposited shall hereinafter be referred to as the “Operating Expense Reserve Funds.” Provided no Event of Default has occurred and is continuing, sums from the
Operating Expense Reserve Account shall be disbursed by Lender to Borrower following receipt and approval of Borrower’s written request for the payment of such Operating Expenses. 
  
 (b) Borrower shall establish on the date hereof an Eligible Account with Lender or Lender’s agent into
which Borrower shall deposit, on each Payment Date during any Lockbox Cash Flow Sweep Period, funds sufficient to pay any Extraordinary Expenses for the following month which have been approved by Lender (the “Extraordinary Expense Reserve
Account.”) Amounts so deposited shall hereinafter be referred to as the “Extraordinary Expense Reserve Funds.” Provided no Event of Default has occurred and is continuing, sums from the Extraordinary Expense Reserve Account
shall be disbursed by Lender to Borrower following receipt and approval of Borrower’s written request for the payment of such Extraordinary Expenses. 
  

 - 93 - 

 Section 9.11. RESERVE FUNDS GENERALLY.

  
 (a) (i) Except for the Replacement Reserve
Account, the Required Repair Account, the Operating Expense Reserve Account and the Extraordinary Expense Reserve Account, no earnings or interest on the Reserve Accounts shall be payable to Borrower. Neither Lender nor any loan servicer that at any
time holds or maintains such non-interest-bearing Reserve Accounts shall have any obligation to keep or maintain such Reserve Accounts or any funds deposited therein in interest-bearing accounts. If Lender or any such loan servicer elects in its
sole and absolute discretion to keep or maintain any non-interest-bearing Reserve Account or any funds deposited therein in an interest-bearing account, the account shall be an Eligible Account and (A) such funds shall not be invested except in
Permitted Investments, and (B) all interest earned or accrued thereon shall be for the account of and be retained by Lender or such loan servicer. 
  
 (ii) Funds deposited in the Replacement Reserve Account, the Required Repair Account, the Operating Expense Reserve Account and the
Extraordinary Expense Reserve Account shall be held in an interest-bearing business savings account and interest shall be credited to Borrower. In no event shall Lender or any loan servicer that at any time holds or maintains the Replacement Reserve
Account, the Required Repair Account, the Operating Expense Reserve Account and the Extraordinary Expense Reserve Account be required to select any particular interest-bearing account or the account that yields the highest rate of interest, provided
that selection of the account shall be consistent with the general standards at the time being utilized by Lender or the loan servicer, as applicable, in establishing similar accounts for loans of comparable type. All such interest shall be and
become part of the Replacement Reserve Account, the Required Repair Account, the Operating Expense Reserve Account and the Extraordinary Expense Reserve Account and shall be disbursed in accordance with Section 9.5 above; provided, however, that
Lender may, at its election, retain any such interest for its own account during the occurrence and continuance of an Event of Default. Borrower agrees that it shall include all interest on Replacement Reserve Funds, the Required Repair Funds, the
Operating Expense Reserve Funds and the Extraordinary Expense Reserve Funds as the income of Borrower (and, if Borrower is a partnership or other pass-through entity, the partners, members or beneficiaries of Borrower, as the case may be), and
Borrower shall be the owner of the Replacement Reserve Funds, the Required Repair Funds, the Operating Expense Reserve Funds and the Extraordinary Expense Reserve Funds for federal and applicable state and local tax purposes, except to the extent
that Lender retains any interest for its own account during the occurrence and continuance of an Event of Default as provided herein. 
  
 (b) Borrower grants to Lender a first-priority perfected security interest in, and assigns and pledges to Lender, each of the Reserve
Accounts and any and all Reserve Funds now or hereafter deposited in the Reserve Accounts as additional security for payment of the Debt. Until expended or applied in accordance herewith, the Reserve Accounts and the Reserve Funds shall constitute
additional security for the Debt. The provisions of this Section 9.9 are intended to give Lender or any subsequent holder of the Loan “control” of the Reserve Accounts within the meaning of the UCC. 
  
 (c) The Reserve Accounts and any and all Reserve Funds now
or hereafter deposited in the Reserve Accounts shall be subject to the exclusive dominion and control of Lender, which shall hold the Reserve Accounts and any or all Reserve Funds now or hereafter deposited in the Reserve Accounts subject to the
terms and conditions of this Agreement. 

  

 - 94 - 

 
Borrower shall have no right of withdrawal from the Reserve Accounts or any other right or power with respect to the Reserve Accounts or any or all of the
Reserve Funds now or hereafter deposited in the Reserve Accounts, except as expressly provided in this Agreement. 
  
 (d) Lender shall furnish or cause to be furnished to Borrower, without charge, an annual accounting of each Reserve Account in the normal
format of Lender or its loan servicer, showing credits and debits to such Reserve Account and the purpose for which each debit to each Reserve Account was made. 
  
 (e) As long as no Event of Default has occurred, Lender shall make disbursements from the Reserve Accounts
in accordance with this Agreement. All such disbursements shall be deemed to have been expressly pre-authorized by Borrower, and shall not be deemed to constitute the exercise by Lender of any remedies against Borrower unless an Event of Default has
occurred and is continuing and Lender has expressly stated in writing its intent to proceed to exercise its remedies as a secured party, pledgee or lienholder with respect to the Reserve Accounts. 
  
 (f) If any Event of Default occurs, Borrower shall
immediately lose all of its rights to receive disbursements from the Reserve Accounts until the earlier to occur of (i) the date on which such Event of Default is cured to Lender’s satisfaction, or (ii) the payment in full of the Debt. In
addition, at Lender’s election, Borrower shall lose all of its rights to receive interest on the Replacement Reserve Account, the Required Repair Account, the Operating Expense Reserve Account and the Extraordinary Expense Reserve Account
during the occurrence and continuance of an Event of Default. Upon the occurrence of any Event of Default, Lender may exercise any or all of its rights and remedies as a secured party, pledgee and lienholder with respect to the Reserve Accounts.
Without limitation of the foregoing, upon any Event of Default, Lender may use and disburse the Reserve Funds (or any portion thereof) for any of the following purposes: (A) repayment of the Debt, including, but not limited to, principal prepayments
and the prepayment premium applicable to such full or partial prepayment (as applicable); (B) reimbursement of Lender for all losses, fees, costs and expenses (including, without limitation, reasonable legal fees) suffered or incurred by Lender as a
result of such Event of Default; (C) payment of any amount expended in exercising any or all rights and remedies available to Lender at law or in equity or under this Agreement or under any of the other Loan Documents; (D) payment of any item from
any of the Reserve Accounts as required or permitted under this Agreement; or (E) any other purpose permitted by applicable law; provided, however, that any such application of funds shall not cure or be deemed to cure any Event of Default. Without
limiting any other provisions hereof, each of the remedial actions described in the immediately preceding sentence shall be deemed to be a commercially reasonable exercise of Lender’s rights and remedies as a secured party with respect to the
Reserve Funds and shall not in any event be deemed to constitute a setoff or a foreclosure of a statutory banker’s lien. Nothing in this Agreement shall obligate Lender to apply all or any portion of the Reserve Funds to effect a cure of any
Event of Default, or to pay the Debt, or in any specific order of priority. The exercise of any or all of Lender’s rights and remedies under this Agreement or under any of the other Loan Documents shall not in any way prejudice or affect
Lender’s right to initiate and complete a foreclosure under the Mortgages. 
  

 - 95 - 

 (g) The Reserve Funds shall not constitute escrow or trust funds and may be commingled
with other monies held by Lender but such Reserve Funds shall continue to be owned by Borrower until the application to the Debt or other amounts due hereunder during the occurrence and continuation of an Event of Default. Notwithstanding anything
else herein to the contrary, Lender may commingle in one or more Eligible Accounts any and all funds controlled by Lender, including, without limitation, funds pledged in favor of Lender by other borrowers, whether for the same purposes as the
Reserve Accounts or otherwise. Without limiting any other provisions of this Agreement or any other Loan Document, the Reserve Accounts may be established and held in such name or names as Lender or its loan servicer, as agent for Lender, shall deem
appropriate, including, without limitation, in the name of Lender or such loan servicer, as agent for Lender. In the case of any Reserve Account which is held in a commingled account, Lender or its loan servicer, as applicable, shall maintain
records sufficient to enable it to determine at all times which portion of such account is owned by Borrower and related to the Loan. The Reserve Accounts are solely for the protection of Lender. With respect to the Reserve Accounts, Lender shall
have no responsibility beyond (i) the allowance of due credit for the sums actually received by Lender or beyond the reimbursement or payment of the costs and expenses for which such accounts were established in accordance with their terms and (ii)
ensuring that the Reserve Accounts are only invested in Permitted Investments. Upon assignment of the Loan by Lender, any Reserve Funds shall be turned over to the assignee and any responsibility of Lender as assignor shall terminate. The
requirements of this Agreement concerning Reserve Accounts in no way supersede, limit or waive any other rights or obligations of the parties under any of the Loan Documents or under applicable law. 
  
 (h) Borrower shall not, without obtaining the prior written
consent of Lender, further pledge, assign or grant any security interest in the Reserve Accounts or the Reserve Funds deposited therein or permit any Lien to attach thereto, except for the security interest granted in this Section 9.9, or any levy
to be made thereon, or any UCC Financing Statements, except those naming Lender as the secured party, to be filed with respect thereto. 
  
 (i) Borrower will maintain the security interest created by this Section 9.9 as a first priority perfected security interest and will
defend the right, title and interest of Lender in and to the Reserve Accounts and the Reserve Funds against the claims and demands of all Persons whomsoever. At any time and from time to time, upon the written request of Lender, and at the sole
expense of Borrower, Borrower will promptly and duly execute and deliver such further instruments and documents and will take such further actions as Lender reasonably may request for the purpose of obtaining or preserving the full benefits of this
Agreement and of the rights and powers herein granted. 
  
 ARTICLE 10 
 CASH MANAGEMENT 
  

Section 10.1. LOCKBOX ACCOUNT AND CASH MANAGEMENT ACCOUNT
 
  
 (a) Borrower acknowledges and confirms
that Borrower has established, and Borrower covenants that it shall maintain (or cause to be maintained), (i) pursuant to the Lockbox Agreements, one or more non-interest bearing Eligible Accounts into which Borrower 

  

 - 96 - 

 
shall, and shall cause Manager to, deposit or cause to be deposited, all Rents and other revenue from each Individual Property (each such account, all funds
at any time on deposit therein and any proceeds, replacements or substitutions of such account or funds therein, are individually and collectively, as the context may require, referred to herein as the “Lockbox Account”), and (ii)
an interest bearing Eligible Account with Lender or Lender’s servicer into which funds in the Lockbox Account shall be transferred pursuant to the terms of Section 10.2(b) hereof (such account, the sub-accounts thereof, all funds at any time on
deposit therein and any proceeds, replacements or substitutions of such account or funds therein, are referred to herein as the “Cash Management Account”). 
  
 (b) The Lockbox Account and Cash Management Account shall each be in the name of Borrower for the benefit of
Lender, provided that Borrower shall be the owner of all funds on deposit in such accounts for federal and applicable state and local tax purposes (except to the extent Lender retains any interest earned on the Cash Management Account for its own
account following the occurrence and during the continuance of an Event of Default or with respect to any earned interest retained by Lender on the Tax and Insurance Reserve Funds). Sums on deposit in the Cash Management Account shall not be
invested except in such Permitted Investments as determined and directed by Lender and all income earned thereon shall be the income of Borrower and be applied to and become part of the Cash Management Account, to be disbursed in accordance with
this Article 10. Neither Lockbox Bank nor Lender shall have any liability for any loss resulting from the investment of funds in Permitted Investments in accordance with the terms and conditions of this Agreement. 
  
 (c) The Lockbox Account and Cash Management Account shall be
subject to the exclusive dominion and control of Lender and, except as otherwise expressly provided herein, none of Borrower, Manager or any other party claiming on behalf of, or through, Borrower, or Manager, shall have any right of withdrawal
therefrom or any other right or power with respect thereto. 
  
 (d) Borrower agrees to pay (or cause to be paid) the customary fees and expenses of Lockbox Bank (incurred in connection with maintaining the Lockbox Account) and Lender (incurred in connection with maintaining the
Lockbox Account) and any successors thereto in connection therewith, as separately agreed by them from time to time. 
  
 (e) Lender shall be responsible for the performance only of such duties with respect to the Cash Management Account as are specifically
set forth herein, and no duty shall be implied from any provision hereof. Lender shall not be under any obligation or duty to perform any act which would involve it in expense or liability or to institute or defend any suit in respect hereof, or to
advance any of its own monies. Borrower shall indemnify and hold Lender and its directors, employees, officers and agents harmless from and against any loss, cost or damage (including, without limitation, reasonable attorneys’ fees and
disbursements) incurred by such parties in connection with the Cash Management Account other than such as result from the gross negligence or willful misconduct of Lender or intentional nonperformance by Lender of its obligations under the Loan
Documents. 
  

 - 97 - 

 Section 10.2. DEPOSITS AND WITHDRAWALS  

 
 (a) Borrower represents, warrants and covenants that:

  
 (i) Concurrently with the execution of this
Agreement, (A) Borrower or Manager shall deliver a notice substantially in the form of Exhibit E hereto to all credit card companies to pay all Account Receivable directly into the Lockbox Account (the “Credit Card Direction
Letter”) and (B) to the extent any Franchisor pays any Accounts Receivable to Borrower, Borrower or Manager shall instruct each Franchisor to deposit all Accounts Receivable for each Individual Property and all other sums collected by each
Franchisor pursuant to each Franchise Agreement into the Lockbox Account (the “Franchisor Direction Letter”). If Borrower or Manager fails to provide any such notice (and without prejudice to Lender’s rights with respect to
such default), Lender shall have the right, and Borrower hereby grants to Lender a power of attorney (which power of attorney shall be coupled with an interest and irrevocable so long as any portion of the Debt remains outstanding), to sign and
deliver the appropriate Credit Card Direction Letter or Franchisor Direction Letter, as applicable; 
  
 (ii) Borrower shall, and shall cause Manager to, instruct all Persons that maintain open accounts with Borrower or Manager with respect to
each Individual Property or with whom Borrower or Manager does business on an “accounts receivable” basis with respect to each Individual Property to deliver all payments due under such accounts to the Lockbox. None of Borrower or Manager
shall direct any such Person to make payments due under such accounts in any other manner; 
  
 (iii) All Rents or other income from the Property shall (A) be deemed additional security for payment of the Debt and shall be held in
trust for the benefit, and as the property, of Lender, (B) not be commingled with any other funds or property of Borrower or Manager, and (C) if received by Borrower or Manager notwithstanding the delivery of a Credit Card Direction Letter or
Franchisor Direction Letter, as applicable, be deposited in the Lockbox Account within one (1) Business Day of receipt; 
  
 (iv) Without the prior written consent of Lender, so long as any portion of the Debt remains outstanding, none of Borrower or Manager
shall terminate, amend, revoke or modify any Credit Card Direction Letter or Franchisor Direction Letter in any manner whatsoever or direct or cause any Tenant, credit card company or Franchisor to pay any amount in any manner other than as provided
in the related Credit Card Direction Letter or Franchisor Direction Letter, as applicable; and 
  
 (v) So long as any portion of the Debt remains outstanding, none of Borrower or Manager nor any other Person shall open or maintain any
accounts other than a Lockbox Account into which revenues from the ownership and operation of each Individual Property are deposited. The foregoing shall not prohibit Borrower from utilizing one or more separate accounts for the disbursement or
retention of funds that have been transferred to Borrower pursuant to the express terms of this Agreement. 
  
 (b) At all times other than during a Cash Management Period, Lockbox Bank shall disburse all funds in the Lockbox Account to any account
specified by Borrower in writing. Upon receipt of notice pursuant to the Lockbox Agreement by Lockbox Bank of the 

  

 - 98 - 

 
commencement of a Cash Management Period, (i) all rights of Borrower to receive disbursements from the Lockbox Account shall immediately cease and be
automatically vested with Lender, and (ii) Lender shall have the right to transfer, or cause to be transferred, and Borrower hereby irrevocably authorizes Lender to transfer, or cause to be transferred, and Lender shall transfer, on each Business
Day by wire transfer or other method of transfer mutually agreeable to Lockbox Bank and Lender of immediately available funds, all collected and available balances in the Lockbox Account to the Cash Management Account to be held until disbursed by
Lender pursuant to Section 10.2(c). All rights of Lender to the withdrawal of funds from the Lockbox Account shall immediately cease upon the discontinuation of a Cash Management Period. In the event a Cash Management Period occurs three times
during the term of the Loan, Borrower shall not be entitled to any disbursements of funds from the Lockbox Account during the remaining term of the Loan, the Cash Management Period shall continue, and Lender shall continue to have the right to the
withdrawal of funds from the Lockbox Account until the Debt is paid in full. 
  
 (c) During a Cash Management Period, on each Payment Date (and if such day is not a Business Day, then the immediately preceding day which is a Business Day) commencing the month immediately following the month during
which the Cash Management Period commences, Borrower hereby irrevocably authorizes Lender to, and subject to the terms hereof, Lender shall, withdraw or allocate to the sub-accounts of the Cash Management Account, as the case may be, amounts
received in the Cash Management Account, in each case to the extent that sufficient funds remain therefore (in the following order): 
  
 (i) funds sufficient to pay the monthly deposits to the Tax and Insurance Reserve Account shall be allocated to the Tax and Insurance
Reserve Account to be held and disbursed in accordance with Section 9.6; 
  
 (ii) notwithstanding an Event of Default may exist, for so long as Manager is not then in default under the Management Agreement beyond any applicable notice and cure periods and Manager is not insolvent or a debtor
in a bankruptcy proceeding funds sufficient to pay all base management fees payable to Manager in accordance with the terms of the Management Agreement for the following month incurred in accordance with the related Annual Budget shall be withdrawn
and paid to Manager and until such time as the Management Agreement is terminated, funds sufficient to pay all costs and expenses reimbursable to Manager pursuant to Section 5.3 of the Management Agreement [ADDITIONAL SECTIONS TO BE ADDED]
for the following month and incurred in accordance with the related Annual Budget shall be withdrawn and paid to Manager; 
  
 (iii) funds sufficient to pay the Monthly Payment Amount shall be withdrawn and paid to Lender; 
  
 (iv) funds sufficient to pay the Replacement Reserve Monthly
Deposit shall be allocated to the Replacement Reserve Account to be held and disbursed in accordance with Section 9.5; 
  
 (v) funds sufficient to pay any interest accruing at the Default Rate, late payment charges, if any, and any other sums due and payable to
Lender under any of 

  

 - 99 - 

 
the Loan Documents, shall be withdrawn and paid to Lender and applied against such items; 
  
 (vi) funds sufficient to pay Lockbox Bank for all costs and expenses incurred by Lockbox Bank in connection
with the maintenance and administration of the Lockbox Account; 
  
 (vii) during a Cash Management Period caused solely by a Mezzanine Default, funds sufficient to pay Operating Expenses (to the extent actually incurred but without duplication of any sums previously disbursed pursuant
to subsection (ii) above) for the following month incurred in accordance with the related Annual Budget shall be allocated to the Operating Expense Reserve Account to be held and disbursed in accordance with Section 9.10; 
  
 (viii) during a Cash Management Period caused solely by a
Mezzanine Default, funds sufficient to pay any Extraordinary Expenses (without duplication of any sums previously disbursed pursuant to subsection (ii) above) for the following month which have been approved by Lender shall be allocated to the
Extraordinary Expense Account to be held and disbursed in accordance with Section 9.10; 
  
 (ix) funds sufficient to pay (A) the Monthly Mezzanine Debt Service Payment Amount and (B) any Net Liquidation Proceeds After Debt
Service, shall be deposited in an account designated by Mezzanine Lender in writing to Lender; and 
  
 (x) funds in an amount equal to the balance (if any) remaining on deposit in the Cash Management Account after the foregoing withdrawals
and allocations shall, during any Cash Management Period caused solely by a Mezzanine Default, be deposited in an account designated by Mezzanine Lender in writing to Lender, or during any other Cash Management Period (other than caused by an Event
of Default), be transferred to Borrower’s Account. 
  
 (d) Notwithstanding anything to the contrary herein, Borrower acknowledges that Borrower is responsible for monitoring the sufficiency of funds deposited in the Cash Management Account and that Borrower is liable for
any deficiency in available funds, irrespective of whether Borrower has received any account statement, notice or demand from Lender or Lender’s servicer. If the amount on deposit in the Cash Management Account is insufficient to make all of
the withdrawals and allocations described in Section 10.2(c)(i) through (ix) above, Borrower shall deposit such deficiency into the Cash Management Account within five (5) days (provided that such five day period shall not constitute a grace period
for any default or Event of Default under this Agreement or any other Loan Document based on a failure to satisfy any monetary obligation provided in any Loan Document). 
  
 (e) If an Event of Default shall have occurred and be continuing, Borrower hereby irrevocably authorizes
Lender to make any and all withdrawals from the Lockbox Account and Cash Management Account and transfers between any of the Reserve Accounts as Lender shall determine in Lender’s sole and absolute discretion and Lender may use all funds
contained in any such accounts for any purpose, including but not limited to repayment of the 

  

 - 100 - 

 
Debt in such order, proportion and priority as Lender may determine in its sole and absolute discretion. Lender’s right to withdraw and apply funds as
stated herein shall be in addition to all other rights and remedies provided to Lender under this Agreement, the Note, the Mortgage and the other Loan Documents. 
  
 Section 10.3. SECURITY INTEREST 
  
 (a) To secure the full and punctual payment of the Debt and
performance of all obligations of Borrower now or hereafter existing under this Agreement and the other Loan Documents, Borrower hereby grants to Lender a first-priority perfected security interest in the Lockbox Account and Cash Management Account,
all interest, cash, checks, drafts, certificates and instruments, if any, from time to time deposited or held therein, any and all amounts invested in Permitted Investments, and all “proceeds” (as defined in the UCC as in effect in the
state in which the Lockbox Account and Cash Management Account are located or maintained) of any or all of the foregoing. Furthermore, Borrower shall not, without obtaining the prior written consent of Lender, further pledge, assign or grant any
security interest in any of the foregoing or permit any Lien to attach thereto or any levy to be made thereon or any UCC Financing Statements to be filed with respect thereto. Borrower will maintain the security interest created by this Section
10.3(a) as a first priority perfected security interest and will defend the right, title and interest of Lender in and to the Lockbox Account and Cash Management Account against the claims and demands of all Persons whomsoever. 
  
 (b) Borrower authorizes Lender to file any financing
statement or statements required by Lender to establish or maintain the validity, perfection and priority of the security interest granted herein in connection with the Lockbox Account and Cash Management Account. Borrower agrees that at any time
and from time to time, at the expense of Borrower, Borrower will promptly and duly execute and deliver all further instruments and documents, and take all further action, that may be necessary or desirable, or that Lender may reasonably request, in
order to perfect and protect any security interest granted or purported to be granted hereby (including, without limitation, any security interest in and to any Permitted Investments) or to enable Lender to exercise and enforce its rights and
remedies hereunder. 
  
 (c) Upon the occurrence
of an Event of Default, Lender may exercise any or all of its rights and remedies as a secured party, pledgee and lienholder with respect to the Lockbox Account and Cash Management Account. Without limitation of the foregoing, upon any Event of
Default, Lender may use the Lockbox Account and Cash Management Account for any of the following purposes: (A) repayment of the Debt, including, but not limited to, principal prepayments and the prepayment premium applicable to such full or partial
prepayment (as applicable); (B) reimbursement of Lender for all losses, fees, and out-of-pocket costs and expenses (including, without limitation, reasonable legal fees) suffered or incurred by Lender as a result of such Event of Default; (C)
payment of any amount reasonably expended in exercising any or all rights and remedies available to Lender at law or in equity or under this Agreement or under any of the other Loan Documents; (D) payment of any item as required or permitted under
this Agreement; or (E) any other purpose permitted by applicable law; provided, however, that any such application of funds shall not cure or be deemed to cure any Event of Default. Without limiting any other provisions hereof, each of the remedial
actions described in the immediately preceding sentence shall be deemed to be a commercially reasonable exercise of Lender’s rights 

  

 - 101 - 

 
and remedies as a secured party with respect to the Lockbox Account and Cash Management Account and shall not in any event be deemed to constitute a setoff
or a foreclosure of a statutory banker’s lien. Nothing in this Agreement shall obligate Lender to apply all or any portion of the Lockbox Account or Cash Management Account to effect a cure of any Event of Default, or to pay the Debt, or in any
specific order of priority. The exercise of any or all of Lender’s rights and remedies under this Agreement or under any of the other Loan Documents shall not in any way prejudice or affect Lender’s right to initiate and complete a
foreclosure under the Mortgage. 
  
 (d)
Notwithstanding anything to the contrary contained herein, For purposes of this Article 10 only, Business Day shall mean a day on which Lender and Lockbox Bank are both open for the conduct of substantially all of their respective banking business
at the office in the city in which the Note is payable, with respect to Lender and at the office in the city where the Lockbox Account is maintained, with respect to Lockbox Bank (in both instances, excluding Saturdays and Sundays). 
  
 Section 10.4. LENDER
RELIANCE. 
  
 Lender shall have
no duty to confirm, inquire or determine whether a Mezzanine Default has occurred. Lender may rely on any notice it believes in good faith to be genuine and given by Mezzanine Lender. 
  
 ARTICLE 11 
 EVENTS OF DEFAULT; REMEDIES 
  
 Section 11.1.
EVENT OF DEFAULT. 
  
 The occurrence of any one or more of the following events shall constitute an “Event of Default”: 
  
 (a) if any portion of the Debt is not paid on or prior to the date the same is due or if the entire Debt is not paid on or before the
Maturity Date; provided, however, with respect to any failure by Borrower to pay any regularly scheduled installment of interest hereunder when due (other than any installment of interest or any other amount due on the Maturity Date) and up to one
(1) time during any loan year and not more than three (3) times during the term of the Loan, Borrower shall have two (2) Business Days after receipt of written notice thereof from Lender in which to cure such Event of Default (which cure shall
include payment of the late payment charge and interest on such past due amount calculated at the Default Rate from the date such amount was originally due), after which time Lender may, at its option and without further notice, exercise any of its
rights and remedies available to it pursuant to this Agreement and the other Loan Documents or at law or in equity; provided, further, that with respect to any failure by Borrower to pay any other portion of the Debt (other than the any installment
of interest or any other amount due on the Maturity Date), Borrower shall have five (5) days after receipt of written notice thereof from Lender in which to cure such Event of Default, after which time Lender may, at its option and without further
notice, exercise any of its rights and remedies available to it pursuant to this Agreement and the other Loan Documents or at law or in equity; provided, further however, Borrower shall not be in default so long as there is sufficient money in the
Cash Management Account, or Reserve Accounts 

  

 - 102 - 

 
for payment of all amounts then due and payable (including any deposits into Reserve Accounts) and Lender’s access to such money has not been
constrained or constricted in any manner and Borrower makes such payment which is due and payable within five (5) days of receipt of notice from Lender; 
  
 (b) except as otherwise expressly provided in the Loan Documents, if any of the Taxes or Other Charges are not paid when the same are due
and payable, unless there is sufficient money in the Tax and Insurance Reserve Account for payment of amounts then due and payable and Lender’s access to such money has not been constrained or restricted in any manner; 
  
 (c) if the Policies are not kept in full force and effect,
or if certified copies of the Policies are not delivered to Lender as provided in Section 8.1; 
  
 (d) if Borrower breaches any covenant with respect to itself or any SPE Component Entity (if any) contained in Article 6 or any covenant
contained in Article 7 hereof; 
  
 (e) if any
representation or warranty of, or with respect to, Borrower, Borrower Principal, Ground Lessor, any SPE Component Entity, or any member, general partner, principal or beneficial owner of any of the foregoing, made herein, in any other Loan Document,
or in any certificate, report, financial statement or other instrument or document furnished to Lender at the time of the closing of the Loan or during the term of the Loan shall have been false or misleading in any material respect when made;

  
 (f) if (i) Borrower, or any managing member
or general partner of Borrower, Borrower Principal or any SPE Component Entity (if any) shall commence any case, proceeding or other action (A) under any Creditors Rights Laws, seeking to have an order for relief entered with respect to it, or
seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or Borrower,
any managing member or general partner of Borrower, Borrower Principal, or any SPE Component Entity (if any) shall make a general assignment for the benefit of its creditors; or (ii) there shall be commenced against Borrower, any managing member or
general partner of Borrower, Borrower Principal, or any SPE Component Entity (if any) any case, proceeding or other action of a nature referred to in clause (i) above which (A) results in the entry of an order for relief or any such adjudication or
appointment or (B) remains undismissed, undischarged or unbonded for a period of sixty (60) days; or (iii) there shall be commenced against Borrower, any managing member or general partner of Borrower, Borrower Principal, or any SPE Component Entity
(if any) any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets which results in the entry of any order for any such relief which
shall not have been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days from the entry thereof; or (iv) Borrower, any managing member or general partner of Borrower, Borrower Principal, or any SPE Component Entity (if any)
shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) Borrower, any managing member or general partner of Borrower, Borrower
Principal, or any SPE Component Entity (if any) shall 

  

 - 103 - 

 
generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they become due; 
  
 (g) if Borrower shall be in default beyond applicable notice
and grace or cure periods under any other mortgage, deed of trust, deed to secure debt or other security agreement covering any part of any Individual Property, whether it be superior or junior in lien to any Mortgage; 
  
 (h) if any Individual Property becomes subject to any
mechanic’s, materialman’s or other Lien other than a Lien for any Taxes or Other Charges not then due and payable and the Lien shall remain undischarged of record (by payment, bonding or otherwise) for a period of thirty (30) days, subject
to Borrower’s right to contest such Lien in the same manner as contesting Taxes and Other Charges set forth in Section 5.4; 
  
 (i) if any federal tax lien is filed against Borrower, any member or general partner of Borrower, Borrower Principal, or any SPE Component
Entity (if any) or any Individual Property and same is not discharged of record within thirty (30) days after same is filed; provided, however, that Borrower shall have the right to contest such federal tax lien in the same manner set forth in
Section 5.4(b) with respect to contesting taxes; 
  
 (j) if a judgment, not covered by any insurance required to be maintained in this Agreement, is filed against the Borrower in excess of $50,000 which is not vacated or discharged within 30 days; 
  
 (k) if any default occurs under any guaranty or indemnity
executed in connection herewith and such default continues after the expiration of applicable grace periods, if any; 
  
 (l) if Borrower shall permit any event within its control to occur that would cause any REA to terminate without notice or action by any
party thereto or would entitle any party to terminate any REA and the term thereof by giving notice to Borrower; or any REA shall be surrendered, terminated or canceled for any reason or under any circumstance whatsoever except as provided for in
such REA; or any term of any REA shall be modified or supplemented without Lender’s prior written consent; or Borrower shall fail, within ten (10) Business Days after demand by Lender, to exercise its option to renew or extend the term of any
REA or shall fail or neglect to pursue diligently all actions necessary to exercise such renewal rights pursuant to such REA except as provided for in such REA; provided that the foregoing shall not constitute an Event of Default if a replacement
REA is entered into concurrently with such termination, cancellation, or non-renewal on terms reasonably acceptable to Lender; 
  
 (m) if Borrower breaches any of its covenants contained in Section 5.23; 
  
 (n) if Borrower shall fail to pay the Ground Rent or any additional rent or other charge mentioned in or
made payable by any Ground Lease when said rent or other charge is due and payable; 
  
 (o) [Reserved]; 
  

 - 104 - 

 (p) if there shall occur any default by Borrower, as tenant under any Ground Lease, in
the observance or performance of any term, covenant or condition of such Ground Lease on the part of Borrower to be observed or performed and said default is not cured following the expiration of any applicable grace and notice periods therein
provided, or if the leasehold estate created by such Ground Lease shall be surrendered or if such Ground Lease shall cease to be in full force and effect or such Ground Lease shall be terminated or canceled for any reason or under any circumstances
whatsoever, or if any of the terms, covenants or conditions of such Ground Lease shall in any manner be modified, changed, supplemented, altered, or amended without the consent of Lender; 
  
 (q) if there shall if there shall occur any default under
the Operating Lease, in the observance or performance of any term, covenant or condition of the Operating Lease to be observed or performed and said default is not cured following the expiration of any applicable grace and notice periods therein
provided or if the leasehold estate created by the Operating Lease shall be surrendered or if the Operating Lease shall cease to be in full force and effect or the Operating Lease shall be terminated or canceled for any reason or under any
circumstances whatsoever, or if any of the terms, covenants or conditions of the Operating Lease shall in any manner be modified, changed, supplemented, altered, or amended without the consent of Lender; 
  
 (r) if a default has occurred and continues beyond any
applicable cure period under the Franchise Agreement, and such default permits a party to terminate or cancel the Franchise Agreement, unless the Franchisor has waived such default; 
  
 (s) if Borrower ceases to operate a hotel on any Individual
Property (which has not been sold in accordance with the provisions of this Agreement) or terminates such business for any reason whatsoever (other than temporary cessation in connection with any renovations to an Individual Property or restoration
of the Individual Property after Casualty or Condemnation); 
  
 (t) if Borrower terminates or cancels the Franchise Agreement or operates the Property under the name of any hotel chain or system other than as set forth on Schedule VII with respect to the applicable
Individual Property set forth therein, without Lender’s prior written consent; 
  
 (u) if Borrower shall continue to be in default under any other term, covenant or condition of this Agreement or any of the Loan Documents
for more than ten (10) days after notice from Lender in the case of any default which can be cured by the payment of a sum of money or for thirty (30) days after notice from Lender in the case of any other default, provided that if such default
cannot reasonably be cured within such thirty (30) day period and Borrower shall have commenced to cure such default within such thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day
period shall be extended for so long as it shall require Borrower in the exercise of due diligence to cure such default, it being agreed that no such extension shall be for a period in excess of sixty (60) days; 
  

 - 105 - 

 (v) in the event that the long term credit rating of the Issuing Bank falls below the
Minimum L/C Rating and Borrower fails to deliver to Lender within thirty (30) days thereof a Letter of Credit in an amount equal to the amount of the Letter of Credit being replaced from an Issuing Bank having a credit rating of no less than the
Minimum L/C Rating, unless such Letter of Credit is replaced with cash in accordance with the terms hereof within such thirty (30) day period; or 
  
 (w) if any Letter of Credit is not renewed, replaced or substituted with cash or a replacement Letter of Credit in accordance with the
terms hereof thirty (30) days prior to the expiration date of such Letter of Credit. 
  
 Section 11.2. REMEDIES. 
  
 (a) a) Upon the occurrence of an Event of Default (other than an Event of Default described in Section 11.1(f) above) and at any time
thereafter Lender may, in addition to any other rights or remedies available to it pursuant to this Agreement and the other Loan Documents or at law or in equity, take such action, without notice or demand, that Lender deems advisable to protect and
enforce its rights against Borrower and in the Properties, including, without limitation, declaring the Debt to be immediately due and payable, and Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents
against Borrower and the Properties, including, without limitation, all rights or remedies available at law or in equity; and upon any Event of Default described in Section 11.1(f) above, the Debt and all other obligations of Borrower hereunder and
under the other Loan Documents shall immediately and automatically become due and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand, anything contained herein or in any other Loan Document to the
contrary notwithstanding. 
  
 (b) Upon the
occurrence of an Event of Default, all or any one or more of the rights, powers, privileges and other remedies available to Lender against Borrower under this Agreement or any of the other Loan Documents executed and delivered by, or applicable to,
Borrower or at law or in equity may be exercised by Lender at any time and from time to time, whether or not all or any of the Debt shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other
action for the enforcement of its rights and remedies under any of the Loan Documents with respect to the Properties. Any such actions taken by Lender shall be cumulative and concurrent and may be pursued independently, singularly, successively,
together or otherwise, at such time and in such order as Lender may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and remedies of Lender permitted by law, equity
or contract or as set forth herein or in the other Loan Documents. 
  
 ARTICLE 12 
 ENVIRONMENTAL PROVISIONS 
  
 Section 12.1. ENVIRONMENTAL REPRESENTATIONS AND
WARRANTIES. 
  
 Borrower
represents and warrants, based upon an Environmental Report of each Individual Property and information that Borrower knows or should reasonably have known, 

  

 - 106 - 

 
that: (a) there are no Hazardous Materials or underground storage tanks in, on, or under any Individual Property, except those that are both (i) in
compliance with Environmental Laws and with permits issued pursuant thereto (if such permits are required), if any, and (ii) either (A) in the case of Hazardous Materials, in amounts not in excess of that necessary to operate such Individual
Property for the purposes set forth herein or (B) fully disclosed to and approved by Lender in writing pursuant to an Environmental Report; (b) there are no past, present or threatened Releases of Hazardous Materials in violation of any
Environmental Law or which would require remediation by a Governmental Authority in, on, under or from any Individual Property except as described in the Environmental Report; (c) there is no threat of any Release of Hazardous Materials migrating to
any Individual Property except as described in the Environmental Report; (d) there is no past or present non-compliance with Environmental Laws, or with permits issued pursuant thereto, in connection with the Properties except as described in the
Environmental Report; (e) Borrower does not know of, and has not received, any written or oral notice or other communication from any Person relating to Hazardous Materials in, on, under or from any Individual Property; and (f) Borrower has
truthfully and fully provided to Lender, in writing, any and all information relating to environmental conditions in, on, under or from the Properties known to Borrower or contained in Borrower’s files and records, including but not limited to
any reports relating to Hazardous Materials in, on, under or migrating to or from the Properties and/or to the environmental condition of the Properties. 
  
 Section 12.2. ENVIRONMENTAL COVENANTS. 
  
 Borrower covenants and agrees that so long as Borrower owns, manages, is in possession of, or otherwise controls the
operation of any Individual Property: (a) all uses and operations on or of the Properties, whether by Borrower or any other Person, shall be in compliance with all Environmental Laws and permits issued pursuant thereto; (b) there shall be no
Releases of Hazardous Materials in, on, under or from the Properties; (c) there shall be no Hazardous Materials in, on, or under the Properties, except those that are both (i) in compliance with all Environmental Laws and with permits issued
pursuant thereto, if and to the extent required, and (ii) (A) in amounts not in excess of that necessary to operate the applicable Individual Property for the purposes set forth herein or (B) fully disclosed to and approved by Lender in writing; (d)
Borrower shall keep the Properties free and clear of all Environmental Liens; (e) Borrower shall, at its sole cost and expense, fully and expeditiously cooperate in all activities pursuant to Section 12.4 below, including but not limited to
providing all relevant information and making knowledgeable persons available for interviews; (f) Borrower shall, at its sole cost and expense, perform any environmental site assessment or other investigation of environmental conditions in
connection with the Properties, pursuant to any reasonable written request of Lender, upon Lender’s reasonable belief that an Individual Property is not in full compliance with all Environmental Laws, and share with Lender the reports and other
results thereof, and Lender and other Indemnified Parties shall be entitled to rely on such reports and other results thereof; (g) Borrower shall, at its sole cost and expense, comply with all reasonable written requests of Lender to (i) reasonably
effectuate remediation of any Hazardous Materials in, on, under or from the Properties; and (ii) comply with any Environmental Law; (h) Borrower shall not allow any tenant or other user of any Individual Property to violate any Environmental Law;
and (i) Borrower shall immediately notify Lender in writing after it has become aware of (A) any Release or threatened Release of Hazardous Materials in, on, under, from or migrating towards the Properties; (B) any non-compliance with any
Environmental Laws related in any way to the 

  

 - 107 - 

 
Properties; (C) any actual or potential Environmental Lien against any Individual Property; (D) any required or proposed remediation of environmental
conditions relating to any Individual Property; and (E) any written or oral notice or other communication of which Borrower becomes aware from any source whatsoever (including but not limited to a Governmental Authority) relating in any way to
Hazardous Materials. Any failure of Borrower to perform its obligations pursuant to this Section 12.2 shall constitute bad faith waste with respect to the Properties. 
  
 Section 12.3. LENDER’S RIGHTS. 
  
 Lender and any other Person designated by Lender, 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 Properties at all reasonable
times to assess any and all aspects of the environmental condition of the Properties and its use, including but not limited to conducting any environmental assessment or audit (the scope of which shall be determined in Lender’s sole discretion)
and, if Lender reasonably believes that any Individual Property contains Hazardous Materials, taking samples of soil, groundwater or other water, air, or building materials, and conducting other invasive testing. Borrower shall cooperate with and
provide access to Lender and any such person or entity designated by Lender. 
  
 Section 12.4. OPERATIONS AND MAINTENANCE PROGRAMS. 
  
 If recommended by the Environmental Report or any other environmental assessment or audit of any Individual Property,
Borrower shall establish and comply with an operations and maintenance program with respect to such Individual Property, in form and substance reasonably acceptable to Lender, prepared by an environmental consultant reasonably acceptable to Lender,
which program shall address any asbestos-containing material or lead based paint that may now or in the future be detected at or on such Individual Property. Without limiting the generality of the preceding sentence, Lender may require (a) periodic
notices or reports to Lender in form, substance and at such intervals as Lender may specify, (b) an amendment to such operations and maintenance program to address changing circumstances, laws or other matters, (c) at Borrower’s sole expense,
supplemental examination of the Properties by consultants specified by Lender, (d) access to the Properties by Lender, its agents or servicer, to review and assess the environmental condition of the Properties and Borrower’s compliance with any
operations and maintenance program, and (e) variation of the operations and maintenance program in response to the reports provided by any such consultants. 
  
 Section 12.5. ENVIRONMENTAL DEFINITIONS. 
  
 “Environmental Law” means any present and future federal, state and local laws, statutes, ordinances,
rules, regulations, standards, policies and other government directives or requirements, as well as common law, including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act and the Resource Conservation and
Recovery Act, that apply to Borrower or any Individual Property and relate to Hazardous Materials or protection of human health or the environment. “Environmental Liens” means all Liens and other encumbrances imposed pursuant to any
Environmental Law, whether due to any act or omission of Borrower or any other Person. “Environmental Report” means the written 

  

 - 108 - 

 
reports resulting from the environmental site assessments of any Individual Property delivered to Lender in connection with the Loan. “Hazardous
Materials” shall mean petroleum and petroleum products and compounds containing them, including gasoline, diesel fuel and oil; explosives, flammable materials; radioactive materials; polychlorinated biphenyls and compounds containing them;
lead and lead-based paint; asbestos or asbestos-containing materials in any form that is or could become friable; underground or above-ground storage tanks, whether empty or containing any substance; any substance the presence of which on any
Individual Property is prohibited by any federal, state or local authority; any substance that requires special handling; and any other material or substance now or in the future defined as a “hazardous substance,” “hazardous
material”, “hazardous waste”, “toxic substance”, “toxic pollutant”, “contaminant”, or “pollutant” within the meaning of any Environmental Law. “Release” of any Hazardous
Materials includes but is not limited to any release, deposit, discharge, emission, leaking, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or other movement of Hazardous Materials. 
  
 Section 12.6. INDEMNIFICATION.

  
 (a) Borrower and Borrower Principal covenant
and agree at their sole cost and expense, to protect, defend, indemnify, release and hold Indemnified Parties harmless from and against any and all Losses imposed upon or incurred by or asserted against any Indemnified Parties and directly or
indirectly arising out of or in any way relating to any one or more of the following: (i) any presence of any Hazardous Materials in, on, above, or under any Individual Property; (ii) any past, present or threatened Release of Hazardous Materials
in, on, above, under or from any Individual Property; (iii) any activity by Borrower, any Person affiliated with Borrower, and any Tenant or other user of an Individual Property in connection with any actual, proposed or threatened use, treatment,
storage, holding, existence, disposition or other Release, generation, production, manufacturing, processing, refining, control, management, abatement, removal, handling, transfer or transportation to or from an Individual Property of any Hazardous
Materials at any time located in, under, on or above an Individual Property or any actual or proposed remediation of any Hazardous Materials at any time located in, under, on or above an Individual Property, whether or not such remediation is
voluntary or pursuant to court or administrative order, including but not limited to any removal, remedial or corrective action; (iv) any past, present or threatened non-compliance or violations of any Environmental Laws (or permits issued pursuant
to any Environmental Law) in connection with any Individual Property or operations thereon, including but not limited to any failure by Borrower, any person or entity affiliated with Borrower, and any tenant or other user of any Individual Property
to comply with any order of any Governmental Authority in connection with any Environmental Laws; (v) the imposition, recording or filing or the threatened imposition, recording or filing of any Environmental Lien encumbering any Individual
Property; (vi) any acts of Borrower, any person or entity affiliated with Borrower, and any tenant or other user of any Individual Property in (A) arranging for disposal or treatment, or arranging with a transporter for transport for disposal or
treatment, of Hazardous Materials at any facility or incineration vessel containing such or similar Hazardous Materials or (B) accepting any Hazardous Materials for transport to disposal or treatment facilities, incineration vessels or sites from
which there is a Release, or a threatened Release of any Hazardous Substance which causes the incurrence of costs for remediation; and (vii) any misrepresentation or inaccuracy in any representation or warranty or material breach or failure 

  

 - 109 - 

 
to perform any covenants or other obligations pursuant to this Agreement relating to environmental matters. 
  
 (b) Upon written request by any Indemnified Party, Borrower
and Borrower Principal shall defend same (if requested by any Indemnified Party, in the name of the Indemnified Party) by attorneys and other professionals approved by the Indemnified Parties. Notwithstanding the foregoing, any Indemnified Parties
may, in their sole discretion, engage their own attorneys and other professionals to defend or assist them, and, at the option of Indemnified Parties, their attorneys shall control the resolution of any claim or proceeding. Upon demand, Borrower and
Borrower Principal shall pay or, in the sole discretion of the Indemnified Parties, reimburse, the Indemnified Parties for the payment of reasonable fees and disbursements of attorneys, engineers, environmental consultants, laboratories and other
professionals in connection therewith. 
  
 (c)
Notwithstanding the foregoing, Borrower and Borrower Principal shall have no liability for any Losses imposed upon or incurred by or asserted against any Indemnified Parties and described in subsection (a) above to the extent that Borrower or
Borrower Principal can conclusively prove both that such Losses were caused by actions, conditions or events that occurred after the date that Lender (or any purchaser at a foreclosure sale) actually acquired title to the Properties and that such
Losses were not caused by the direct or indirect actions of Borrower, Borrower Principal, or any partner, member, principal, officer, director, trustee or manager of Borrower or Borrower Principal or any employee, agent, contractor or Affiliate of
Borrower or Borrower Principal. The obligations and liabilities of Borrower and Borrower Principal under this Section 12.6 shall fully survive indefinitely notwithstanding any termination, satisfaction, assignment, entry of a judgment of
foreclosure, exercise of any power of sale, or delivery of a deed in lieu of foreclosure of any Mortgage. 
  
 ARTICLE 13 
 SECONDARY MARKET 
  
 Section 13.1. TRANSFER OF
LOAN. 
  
 Lender may, at any
time, sell, transfer or assign the Loan Documents, or grant participations therein (“Participations”) or syndicate the Loan (“Syndication”) or issue mortgage pass-through certificates or other securities evidencing
a beneficial interest in a rated or unrated public offering or private placement (“Securities”) (a Syndication or the issuance of Participations and/or Securities, a “Securitization”). 
  
 Section 13.2. DELEGATION OF
SERVICING. 
  
 At the option of
Lender, the Loan may be serviced by a servicer/trustee selected by Lender and Lender may delegate all or any portion of its responsibilities under this Agreement and the other Loan Documents to such servicer/trustee pursuant to a servicing agreement
between Lender and such servicer/trustee. 
  

 - 110 - 

 Section 13.3. DISSEMINATION OF
INFORMATION. 
  
 Lender may
forward to each purchaser, transferee, assignee, or servicer of, and each participant, or investor in, the Loan, or any Participations and/or Securities or any of their respective successors (collectively, the “Investor”) or any
Rating Agency rating the Loan, or any Participations and/or Securities, each prospective Investor, and any organization maintaining databases on the underwriting and performance of commercial mortgage loans (the “Disclosure Parties”), all
documents and information which Lender now has or may hereafter acquire relating to the Debt and to Borrower, any managing member or general partner thereof, Borrower Principal, any SPE Component Entity (if any) and the Properties, including
financial statements, whether furnished by Borrower or otherwise, as Lender determines necessary or desirable (the “Loan File Information”). Each Investor shall only be permitted to disseminate any Loan File Information in connection with
any purpose related to its ownership of its interest in the Loan, provided however, any Investor or Disclosure Party may disclose the Loan File Information to any subsequent Investor or Disclosure Party in connection with a purchase, sale, transfer
or assignment of all or any portion of the Loan. Borrower irrevocably waives any and all rights it may have under applicable Legal Requirements to prohibit such disclosure, including but not limited to, except as set forth in the immediately
preceding sentence, any right of privacy. 
  
 Section 13.4.
COOPERATION. 
  
 At the
reasonable request of the holder of the Note and, to the extent not already required to be provided by Borrower under this Agreement, Borrower and Borrower Principal shall use reasonable efforts to provide information not in the possession of the
holder of the Note in order to satisfy the market standards to which the holder of the Note customarily adheres or which may be reasonably required in the marketplace or by the Rating Agencies in connection with such sales or transfers, including,
without limitation, to: 
  
 (a) provide updated
financial, budget and other information with respect to the Properties, Borrower, Borrower Principal and Manager and provide modifications and/or updates to the appraisals, market studies, environmental reviews and reports (Phase I reports and, if
appropriate, Phase II reports) and engineering reports of the Properties obtained in connection with the making of the Loan (all of the foregoing being referred to as the “Provided Information”), together, if customary, with
appropriate verification and/or consents of the Provided Information through letters of auditors or opinions of counsel of independent attorneys acceptable to Lender and the Rating Agencies; 
  
 (b) make changes to the organizational documents of
Borrower, any SPE Component Entity and their respective principals; 
  
 (c) at Borrower’s expense, cause counsel to render or update existing opinion letters as to enforceability and non-consolidation, and a 10b-5 comfort letter, which may be relied upon by the holder of the Note,
the Rating Agencies and their respective counsel, which shall be dated as of the closing date of the Securitization; 
  
 (d) permit site inspections, appraisals, market studies and other due diligence investigations of the Properties, as may be reasonably
requested by the holder of the Note or the Rating Agencies or as may be necessary or appropriate in connection with the Securitization; 
  

 - 111 - 

 (e) make the representations and warranties with respect to the Properties, Borrower,
Borrower Principal and the Loan Documents as are made in the Loan Documents and such other representations and warranties as may be reasonably requested by the holder of the Note or the Rating Agencies; 
  
 (f) execute such amendments to the Loan Documents as may be
requested by the holder of the Note or the Rating Agencies or otherwise to effect the Securitization including, without limitation, bifurcation of the Loan into two or more components and/or separate notes and/or creating a senior/subordinate note
structure; provided, however, that Borrower shall not be required to modify or amend any Loan Document if such modification or amendment would (i) change the interest rate or the stated maturity, except in connection with a bifurcation of the Loan
which may result in varying LIBOR Rates for each component thereof, but which shall have the same initial weighted average coupon of the LIBOR Rate, or (ii) in the reasonable judgment of Borrower, modify or amend any other material economic term of
the Loan, or (iii) in the reasonable judgment of Borrower, materially increase Borrower’s obligations and liabilities, or materially decrease the rights, under the Loan Documents; 
  
 (g) deliver to Lender and/or any Rating Agency, (i) one or more certificates executed by an officer of the
Borrower certifying as to the accuracy, as of the closing date of the Securitization, of all representations made by Borrower in the Loan Documents as of the Closing Date in all relevant jurisdictions or, if such representations are no longer
accurate, certifying as to what modifications to the representations would be required to make such representations accurate as of the closing date of the Securitization, and (ii) certificates of the relevant Governmental Authorities in all relevant
jurisdictions indicating the good standing and qualification of Borrower as of the date of the closing date of the Securitization; 
  
 (h) have reasonably appropriate personnel participate in a bank meeting and/or presentation for the Rating Agencies or Investors;

  
 (i) execute modifications to the Loan
Documents changing the interest rate for the Loan and the Mezzanine Loan, provided that the initial weighted average of the interest rate spreads for the Loan and the Mezzanine Loan after such modification shall not exceed the weighted average of
the interest rate spreads for the Loan and the Mezzanine Loan immediately prior to such modification. The Borrower and Borrower Principal shall also provide opinions and title insurance reasonably necessary to effectuate the same; and 
  
 (j) cooperate with and assist Lender in obtaining ratings of
the Securities from two (2) or more of the Rating Agencies. 
  
 Upon Lender’s modification of the Selected Day pursuant to the terms of Section 2.2(d) above, Borrower and Borrower Principal shall promptly deliver to Lender such modifications to the Rate Cap and the Collateral Assignment of Interest
Rate Cap reasonably required by Lender as result of such designation. 
  
 All reasonable third party costs and expenses incurred by Borrower in connection with Borrower’s complying with the requests and requirements made under this Section 13.4 

  

 - 112 - 

 
(including, without limitation, the fees and expenses of the Rating Agencies) shall be paid by Borrower, provided such costs and expenses (together with any
costs and expenses incurred by Borrower pursuant to Section 13.6 hereof) shall not exceed $25,000 in the aggregate. Notwithstanding the foregoing, Borrower shall not be obligated to pay for any modification and/or any update to any appraisal of any
Individual Property requested pursuant to Section 13.4(a). The limitation on costs and expenses set forth in this paragraph shall in no way reduce or vitiate any of Borrower’s performance obligations set forth in this Section 13.4, provided
Lender reimburses Borrower for any such costs incurred by Borrower which exceed $25,000.00. 
  
 In the event that Borrower requests any consent or approval hereunder and the provisions of this Agreement or any Loan Documents require the receipt of written confirmation from each Rating Agency with respect to the
rating on the Securities, or, in accordance with the terms of the transaction documents relating to a Securitization, such a rating confirmation is required in order for the consent of Lender to be given, Borrower shall pay all of the costs and
expenses of Lender, Lender’s servicer and each Rating Agency in connection therewith, and, if applicable, shall pay any fees imposed by any Rating Agency as a condition to the delivery of such confirmation. 
  
 Section 13.5. SECURITIZATION
INDEMNIFICATION. 
  
 (a) Borrower and Borrower Principal understand that certain of the Provided Information may be included in disclosure documents in connection with the Securitization, including, without limitation, a prospectus, prospectus supplement,
offering memorandum or private placement memorandum (each, a “Disclosure Document”) and may also be included in filings with the Securities and Exchange Commission pursuant to the Securities Act or the Exchange Act, or provided or
made available to investors or prospective investors in the Securities, the Rating Agencies, and service providers relating to the Securitization. In the event that the Disclosure Document is required to be revised prior to the sale of all
Securities, Borrower and Borrower Principal will cooperate with the holder of the Note in updating the Disclosure Document by providing all current information necessary to keep the Disclosure Document accurate and complete in all material respects.

  
 (b) Borrower and Borrower Principal agree to
provide in connection with each of (i) a preliminary and a final offering memorandum or private placement memorandum or similar document (including any Investor or Rating Agency “term sheets” or presentations relating to the Properties
and/or the Loan) or (ii) a preliminary and final prospectus or prospectus supplement, as applicable, an indemnification certificate (A) certifying that Borrower and Borrower Principal have carefully examined such memorandum or prospectus or other
document (including any Investor or Rating Agency “term sheets” or presentations relating to the Properties and/or the Loan), as applicable, including without limitation, the sections entitled “Special Considerations,” and/or
“Risk Factors,” and “Certain Legal Aspects of the Mortgage Loan,” or similar sections, and all sections relating to Borrower, Borrower Principal, Manager, their Affiliates, the Loan, the Loan Documents and the Properties, and any
risks or special considerations relating thereto, and that, to the best of Borrower’s knowledge except as identified by Borrower, such sections (and any other sections reasonably requested by Lender (collectively, the “Disclosed
Materials”) do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the 

  

 - 113 - 

 
statements made, in the light of the circumstances under which they were made, not misleading, (B) indemnifying Lender (and for purposes of this Section
13.5, Lender hereunder shall include its officers and directors) and the Affiliate of Lender that (i) has filed the registration statement, if any, relating to the Securitization and/or (ii) which is acting as issuer, depositor, sponsor and/or a
similar capacity with respect to the Securitization (any Person described in (i) or (ii), an “Issuer Person”), and each director and officer of any Issuer Person, and each Person or entity who controls any Issuer Person within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Issuer Group”), and each Person which is acting as an underwriter, manager, placement agent, initial purchaser or similar capacity with
respect to the Securitization, each of its directors and officers and each Person who controls any such Person within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act (collectively, the “Underwriter
Group”) for any Losses to which Lender, the Issuer Group or the Underwriter Group may become subject insofar as the Losses arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the
Disclosed Materials or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated in the Disclosed Materials or necessary in order to make the statements in the Disclosed Materials or in
light of the circumstances under which they were made, not misleading (collectively the “Securities Liabilities”) and (C) agreeing to reimburse Lender, the Issuer Group and the Underwriter Group for any legal or other expenses
reasonably incurred by Lender and Issuer Group in connection with investigating or defending the Securities Liabilities; provided, however, that Borrower will be liable in any such case under clauses (B) or (C) above only to the extent that any such
Securities Liabilities arise out of or is based upon any such untrue statement or omission made therein in reliance upon and in conformity with information furnished to Lender or any member of the Issuer Group or Underwriter Group by or on behalf of
Borrower or Borrower Principal in connection with the preparation of the memorandum or prospectus or other document (including any Investor or Rating Agency “term sheets” or presentations relating to the Properties and/or the Loan) or in
connection with the underwriting of the Loan, including, without limitation, financial statements of Borrower or Borrower Principal, operating statements, rent rolls, environmental site assessment reports and property condition reports with respect
to the Properties but excluding any Projections made in good faith by Borrower. This indemnity agreement will be in addition to any liability which Borrower and Borrower Principal may otherwise have. Moreover, the indemnification provided for in
Clauses (B) and (C) above shall be effective whether or not an indemnification certificate described in (A) above is provided and shall be applicable based on information previously provided by Borrower and Borrower Principal or their Affiliates if
Borrower or Borrower Principal do not provide the indemnification certificate. The foregoing indemnity with respect to any untrue statement or misstatement contained in, or omission from, preliminary Disclosure Documents shall not inure to the
benefit of any member of the Issuer Group or the Underwriting Group (or any person controlling such Issuer Group or Underwriting Group) from whom the Person asserting any such Loss purchased any securities which are the subject thereof if Borrower
shall sustain the burden of proving that any such Loss resulted from the fact that such Person was not provided with a copy of the final Disclosure Documents at or prior to the written confirmation of the sale of such securities to such Person and
the Loss resulted from untrue statement or misstatement contained in, or omission from, the preliminary Disclosure Documents that were corrected in the final 

  

 - 114 - 

 
Disclosed Documents. The indemnity set forth in this Section 13.5 shall not apply with respect to any Securities Liabilities that arise out of or are based
upon any untrue statement, misstatement or omission or any alleged untrue statement, misstatement or omission to state in the Disclosed Materials a material fact required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not materially misleading, if such untrue statement, misstatement or omission or alleged untrue statement, misstatement or omission related to statements and information that do not accurately reflect
the Disclosed Materials or any corrections or updates to the Disclosed Materials which were provided prior to the final Disclosure Documents to investors and neither Borrower nor Borrower’s Principal has been given reasonable opportunity to
review the proposed filing under the Securities Act or Exchange Act and to correct such untrue statement, misstatement or omission. 
  
 (c) In connection with filings under the Exchange Act or any information provided to holders of Securities on an ongoing basis, Borrower
and Borrower Principal agree to indemnify (i) Lender, the Issuer Group and the Underwriter Group for Losses to which Lender, the Issuer Group or the Underwriter Group may become subject insofar as the Securities Liabilities arise out of or are based
upon the omission or alleged omission to state in the Provided Information a material fact required to be stated in the Provided Information in order to make the statements in the Provided Information, in light of the circumstances under which they
were made not misleading and (ii) reimburse Lender, the Issuer Group or the Underwriter Group for any legal or other expenses reasonably incurred by Lender, the Issuer Group or the Underwriter Group in connection with defending or investigating the
Securities Liabilities. 
  
 (d) Promptly after
receipt by an indemnified party under this Section 13.5 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 13.5, notify the
indemnifying party in writing of the commencement thereof, but the omission to so notify the indemnifying party will not relieve the indemnifying party from any liability which the indemnifying party may have to any indemnified party hereunder
except to the extent that failure to notify causes prejudice to the indemnifying party. In the event that any action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party
will be entitled, jointly with any other indemnifying party, to participate therein and, to the extent that it (or they) may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such
indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party. After notice from the indemnifying party to such indemnified party under this Section 13.5 the indemnifying party shall be responsible
for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, if the defendants in any such action include both the indemnified
party and the indemnifying party and the indemnified party shall have reasonably concluded that there are any legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. The
indemnifying party shall not be liable for the expenses of more than one such 

  

 - 115 - 

 
separate counsel unless an indemnified party shall have reasonably concluded that there may be legal defenses available to it that are different from or
additional to those available to another indemnified party. 
  
 (e) In order to provide for just and equitable contribution in circumstances in which the indemnity agreements provided for in Section 13.5(c) or Section 13.5(d) is or are for any reason held to be unenforceable by an
indemnified party in respect of any losses, claims, damages or liabilities (or action in respect thereof) referred to therein which would otherwise be indemnifiable under Section 13.5(c) or Section 13.5(d), the indemnifying party shall contribute to
the amount paid or payable by the indemnified party as a result of such losses, claims, damages or liabilities (or action in respect thereof); provided, however, that no Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. In determining the amount of contribution to which the respective parties are entitled, the following factors
shall be considered: (i) the indemnified party’s, Borrower’s and Borrower Principal’s relative knowledge and access to information concerning the matter with respect to which claim was asserted; (ii) the opportunity to correct and
prevent any statement or omission; and (iii) any other equitable considerations appropriate in the circumstances. Lender, Borrower and Borrower Principal hereby agree that it would not be equitable if the amount of such contribution were determined
by pro rata or per capita allocation. 
  
 (f) The
liabilities and obligations of Borrower, Borrower Principal and Lender under this Section 13.5 shall survive the satisfaction of this Agreement and the satisfaction and discharge of the Debt. 
  
 Section 13.6. REALLOCATION OF
LOAN AMOUNTS. 
  
 Lender, without in any way limiting its other rights hereunder, in its sole and absolute discretion, shall have the right, at any time prior to a Securitization or a Syndication, to reallocate the amount of the Loan and the Mezzanine Loan
and/or adjust the interest rate rates thereon provided that (i) the aggregate principal amount of the Loan and the Mezzanine Loan immediately following such reallocation shall equal the outstanding principal balance of the Loan and the Mezzanine
Loan immediately prior to such reallocation, and (ii) the weighted average interest rate of the Note and the Mezzanine Note immediately following such reallocation shall equal the weighted average interest rate which was applicable to the Note and
the Mezzanine Note immediately prior to such reallocation. Borrower shall cooperate with all reasonable requests of Lender in order to reallocate the amount of the Loan and the Mezzanine Loan and shall execute and deliver such documents as shall
reasonably be required by Lender in connection therewith, all in form and substance reasonably satisfactory to Lender. 
  

 - 116 - 

 ARTICLE 14 
 INDEMNIFICATIONS 
  
 Section 14.1. GENERAL INDEMNIFICATION. 
  
 Borrower shall indemnify, defend and hold harmless the Indemnified Parties from and against any and all Losses imposed upon or incurred by or asserted
against any Indemnified Parties 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
Properties 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 Properties 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 Properties or any part thereof; (d) any failure of the Properties to
be in compliance with any applicable Legal Requirements; (e) any and all claims and demands whatsoever which may be asserted against Lender 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; (f) the holding or investing of the Reserve Accounts or the performance of the Required Work, Additional Required Repairs or Additional Replacements, or (g) the payment of any commission, charge or
brokerage fee to anyone which may be payable in connection with the funding of the Loan (collectively, the “Indemnified Liabilities”); provided, however, that Borrower shall not have any obligation to Lender hereunder to the extent
that such Indemnified Liabilities arise from the gross negligence, illegal acts, fraud or willful misconduct of Lender. To the extent that the undertaking to indemnify, defend and hold harmless set forth in the preceding sentence may be
unenforceable because it violates any law or public policy, Borrower shall pay the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Lender.

  
 Section 14.2. MORTGAGE AND
INTANGIBLE TAX INDEMNIFICATION. 
  
 Subject to the terms set forth in Section 2.3(f), Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless the
Indemnified Parties from and against any and all Losses imposed upon or incurred by or asserted against any Indemnified Parties and directly or indirectly arising out of or in any way relating to any tax on the making and/or recording of the
Mortgages, the Note or any of the other Loan Documents, but excluding any income, franchise or other similar taxes and any Foreign Tax imposed on Lender by reason of any connection between Lender and the taxing jurisdiction other than entering into
this Agreement and receiving payments hereunder. 
  
 Section 14.3.
ERISA INDEMNIFICATION. 
  
 Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties from and against any and all Losses (including, without limitation, reasonable attorneys’ fees and costs
incurred in the investigation, defense, and settlement of Losses incurred in correcting any prohibited transaction or in the sale of a prohibited loan, and in obtaining any individual prohibited transaction exemption under ERISA that may be
required, in Lender’s sole discretion) that Lender may incur, directly or indirectly, as a result of a default under Section 4.8 or Section 5.18 of this Agreement. 
  

 - 117 - 

 Section 14.4. SURVIVAL. 
  
 The obligations and liabilities of Borrower under this Article 14 shall fully
survive indefinitely notwithstanding any termination, satisfaction, assignment, entry of a judgment of foreclosure, exercise of any power of sale, or delivery of a deed in lieu of foreclosure of any Mortgage. 
  
 ARTICLE 15 
 EXCULPATION 
  
 Section 15.1. EXCULPATION. 
  
 (a) Except as otherwise provided herein or in the other Loan Documents, Lender shall not enforce the liability and obligation of Borrower or Borrower Principal, as applicable, to perform and observe the obligations
contained herein or in the other Loan Documents by any action or proceeding wherein a money judgment shall be sought against Borrower or Borrower Principal, except that Lender may bring a foreclosure action, action for specific performance or other
appropriate action or proceeding to enable Lender to enforce and realize upon this Agreement, the Note, the Mortgages and the other Loan Documents, and the interest in the Properties, the Rents and any other collateral given to Lender created by
this Agreement, the Note, the Mortgages and the other Loan Documents; provided, however, that any judgment in any such action or proceeding shall be enforceable against Borrower or Borrower Principal, as applicable, only to the extent of
Borrower’s or Borrower Principal’s interest in the Properties, in the Rents and in any other collateral given to Lender. Lender, by accepting this Agreement, the Note, the Mortgages and the other Loan Documents, agrees that it shall not,
except as otherwise provided in this Section 15.1, sue for, seek or demand any deficiency judgment against Borrower or Borrower Principal in any such action or proceeding, under or by reason of or under or in connection with this Agreement, the
Note, the Mortgages or the other Loan Documents. The provisions of this Section 15.1 shall not, however, (i) constitute a waiver, release or impairment of any obligation evidenced or secured by this Agreement, the Note, the Mortgages or the other
Loan Documents; (ii) impair the right of Lender to name Borrower or Borrower Principal as a party defendant in any action or suit for judicial foreclosure and sale under this Agreement and the Mortgages; (iii) affect the validity or enforceability
of any indemnity (including, without limitation, those contained in Section 12.6, Section 13.5 and Article 14 of this Agreement), guaranty (including, without limitation, the Maryland Guaranty), master lease or similar instrument made in connection
with this Agreement, the Note, the Mortgages and the other Loan Documents; (iv) impair the right of Lender to obtain the appointment of a receiver; (v) impair the enforcement of the assignment of leases provisions contained in the Mortgages; or (vi)
impair the right of Lender to obtain a deficiency judgment or other judgment on the Note against Borrower or Borrower Principal if necessary to obtain any Insurance Proceeds or Awards to which Lender would otherwise be entitled under this Agreement;
provided however, Lender shall only enforce such judgment to the extent of the Insurance Proceeds and/or Awards. 
  

 - 118 - 

 (b) Notwithstanding the provisions of this Section 15.1 to the contrary, Borrower and
Borrower Principal shall be personally liable to Lender on a joint and several basis for Losses due to: 
  
 (i) fraud or intentional misrepresentation by Borrower, Borrower Principal or any other Affiliate of Borrower or Borrower Principal in
connection with the execution and the delivery of this Agreement, the Note, the Mortgages, any of the other Loan Documents, or any certificate, report, financial statement or other instrument or document furnished to Lender at the time of the
closing of the Loan or during the term of the Loan; 
  
 (ii) Borrower’s misapplication or misappropriation of Rents received by Borrower after the occurrence of an Event of Default; 
  
 (iii) Borrower’s misapplication or misappropriation of tenant security deposits or Rents collected in advance; 
  
 (iv) the misapplication or the misappropriation of Insurance
Proceeds or Awards; 
  
 (v) Borrower’s
failure to pay Taxes, Other Charges (except (a) to the extent that sums sufficient to pay such amounts have been deposited in escrow with Lender pursuant to the terms hereof and there exists no impediment to Lender’s utilization thereof or (b)
to the extent the Net Operating Income of each respective Property encumbered by a Mortgage was insufficient to permit payment of the same by Borrower), charges for labor or materials or other charges that can create liens on the Property beyond any
applicable notice and cure periods specified herein; 
  
 (vi) Borrower’s failure to return or to reimburse Lender for all Personal Property taken from the Properties by or on behalf of Borrower and not replaced with Personal Property of the same utility and of the same or greater value;

  
 (vii) any act of actual waste or arson by
Borrower, any principal, Affiliate, member or general partner thereof or by Borrower Principal, any principal, Affiliate, member or general partner thereof; 
  
 (viii) Borrower’s failure following any Event of Default to deliver to Lender upon demand all Rents and books and records relating to
the Properties; 
  
 (ix) Borrower’s gross
negligence or willful misconduct; 
  
 (x) the
payment of any recording taxes, mortgage taxes or documentary stamp taxes or other charges required in connection with any Mortgage or the other Loan Documents, whenever due, together with any fines, interest, penalties or similar charges resulting
from the non-payment thereof; or 
  
 (xi) the
Ground Lease being modified, cancelled or terminated by Borrower without the prior written consent of Lender. 
  
 (c) Notwithstanding the foregoing, the agreement of Lender not to pursue recourse liability as set forth in subsection (a) above SHALL
BECOME NULL AND VOID and shall be of no further force and effect and the Debt shall become fully recourse to Borrower and Borrower Principal, jointly and severally, in the event (i) of a breach of any of the provisions 

  

 - 119 - 

 
set forth in Article 6, except the extent that such breach was inadvertent, immaterial and is promptly cured, (ii) of a breach of any of the covenants set
forth in Article 7 hereof, (iii) any Individual Property or any part thereof shall become an asset in (A) a voluntary bankruptcy or insolvency proceeding of Borrower or Borrower Principal, or (B) an involuntary bankruptcy or insolvency proceeding of
Borrower or Borrower Principal in connection with which Borrower, Borrower Principal, SPE Component Entity or any Affiliate of any of the foregoing has or have colluded in any way with the creditors commencing or filing such proceeding or (iv) if
Borrower or any Affiliate of Borrower wrongfully interferes in any way with Lender’s pursuit of the remedies set forth in the Loan Documents following an Event of Default. 
  
 (d) Nothing herein shall be deemed to be a waiver of any right which Lender may have under Section 506(a),
506(b), 1111(b) or any other provision of the U.S. Bankruptcy Code to file a claim for the full amount of the indebtedness secured by the Mortgages or to require that all collateral shall continue to secure all of the indebtedness owing to Lender in
accordance with this Agreement, the Note, the Mortgages or the other Loan Documents. 
  
 ARTICLE 16 
 NOTICES 
  
 Section 16.1. NOTICES. 
  
 All notices, consents, approvals and requests required or permitted hereunder or under any other Loan Document shall be
given in writing and shall be effective for all purposes if hand delivered or sent by (a) certified or registered United States mail, postage prepaid, return receipt requested, (b) expedited prepaid overnight delivery service, either commercial or
United States Postal Service, with proof of attempted delivery, or by (c) telecopier (with answer back acknowledged provided an additional notice is given pursuant to subsection (b) above), addressed as follows (or at such other address and Person
as shall be designated from time to time by any party hereto, as the case may be, in a written notice to the other parties hereto in the manner provided for in this Section): 
  

			
	 If to Lender:
	  	Bank of America, N.A.
	 	  	900 West Trade Street
	 	  	Suite 650
	 	  	Mail Code: NC1-026-06-01
	 	  	Charlotte, North Carolina 28255
	 	  	Telephone No: (866) 531-0957
	 	  	Facsimile No.: (704) 317-4501
		
	 With a copy to:
	  	Thacher Proffitt & Wood LLP
	 	  	2 World Financial Center
	 	  	New York, New York 10281
	 	  	Attention: David S. Hall, Esq.
	 	  	Telephone No.: (212) 912-7400
	 	  	Facsimile No.: (212) 912-7751

  

 - 120 - 

			
		
	 If to Borrower:
	  	Capital Lodging Properties I, L.P.
	 	  	c/o Capital Lodging
	 	  	2927 Maple Avenue, Suite 503
	 	  	Dallas, Texas 75201
	 	  	Attention: John Bailey
	 	  	Facsimile No.: (214) 373-6243
		
	 	  	Capital Lodging TRS Operations I, Inc.
	 	  	c/o Capital Lodging
	 	  	2927 Maple Avenue, Suite 503
	 	  	Dallas, Texas 75201
	 	  	Attention: John Bailey
	 	  	Facsimile No.: (214) 373-6243
		
	 	  	Capital Lodging Maryland Properties, LLC
	 	  	c/o Capital Lodging
	 	  	2927 Maple Avenue, Suite 503
	 	  	Dallas, Texas 75201
	 	  	Attention: John Bailey
	 	  	Facsimile No.: (214) 373-6243
		
	 	  	Capital Lodging Maryland Properties Holdings, LLC
	 	  	c/o Capital Lodging
	 	  	2927 Maple Avenue, Suite 503
	 	  	Dallas, Texas 75201
	 	  	Attention: John Bailey
	 	  	Facsimile No.: (214) 373-6243
		
	 With a copy to:
	  	Morgan, Lewis & Bockius LLP
	 	  	300 S. Grand Ave, Suite 2200
	 	  	Los Angeles, CA 90071
	 	  	Attention: J. Michael Jack
	 	  	Facsimile No.: (877) 432-9652
		
	 If to Borrower
 Principal:
	  	Capital Lodging Operating Partnership, L.P.
	 	  	c/o Capital Lodging
	 	  	2927 Maple Avenue, Suite 503
	 	  	Dallas, Texas 75201
	 	  	Attention: John Bailey
	 	  	Facsimile No.: (214) 373-6243
		
	 With a copy to:
	  	Morgan, Lewis & Bockius LLP
	 	  	300 S. Grand Ave, Suite 2200
	 	  	Los Angeles, CA 90071
	 	  	Attention: J. Michael Jack
	 	  	Facsimile No.: (877) 432-9652

  

 - 121 - 

 A notice shall be deemed to have been given: in the case of hand delivery, at the time of delivery; in the case of
registered or certified mail, when delivered or the first attempted delivery on a Business Day; or in the case of expedited prepaid delivery and telecopy, upon the first attempted delivery on a Business Day. 
  
 ARTICLE 17 
 FURTHER ASSURANCES 
  
 Section 17.1. REPLACEMENT DOCUMENTS. 
  
 Upon receipt of an affidavit of an officer of Lender 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 Document, Borrower will issue, in lieu thereof, a replacement Note or other Loan Document, dated the date of such lost, stolen,
destroyed or mutilated Note or other Loan Document in the same principal amount thereof and otherwise of like tenor. 
  
 Section 17.2. RECORDING OF MORTGAGE, ETC. 
  
 Borrower forthwith upon the execution and delivery of the Mortgages and
thereafter, from time to time, will cause the Mortgages and any of the other Loan Documents creating a lien or security interest or evidencing the lien hereof upon the Properties 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 Lender in, the Properties.
Borrower 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 Mortgages, the other Loan Documents, any note, deed of trust or mortgage
supplemental hereto, any security instrument with respect to the Properties 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 the Mortgages, any deed of trust or mortgage supplemental hereto, any security instrument with respect to the Properties or any instrument of further
assurance, and any modification or amendment of the foregoing documents, except where prohibited by law so to do. 
  
 Section 17.3. FURTHER ACTS, ETC. 
  
 Borrower will, at the cost of Borrower, and without expense to Lender, do,
execute, acknowledge and deliver all and every further acts, deeds, conveyances, deeds of trust, mortgages, assignments, security agreements, control agreements, notices of assignments, transfers and assurances as Lender shall, from time to time,
reasonably require, including, without limitation, the execution and delivery of all such writings necessary to transfer any liquor licenses into the name of Lender or its designee after the occurrence of any Event of Default, for the better
assuring, conveying, assigning, transferring, and confirming unto Lender the property and rights hereby mortgaged, deeded, granted, bargained, sold, conveyed, confirmed, pledged, assigned, warranted and transferred or intended now or hereafter so to
be, or 

  

 - 122 - 

 
which Borrower may be or may hereafter become bound to convey or assign to Lender, or for carrying out the intention or facilitating the performance of the
terms of this Agreement or for filing, registering or recording the Mortgages, or for complying with all Legal Requirements. Borrower, on demand, will execute and deliver, and in the event it shall fail to so execute and deliver, hereby authorizes
Lender to execute in the name of Borrower or without the signature of Borrower to the extent Lender may lawfully do so, one or more financing statements and financing statement amendments to evidence more effectively, perfect and maintain the
priority of the security interest of Lender in the Properties. Borrower grants to Lender an irrevocable power of attorney coupled with an interest for the purpose of exercising and perfecting any and all rights and remedies available to Lender at
law and in equity, including without limitation, such rights and remedies available to Lender pursuant to this Section 17.3. 
  
 Section 17.4. CHANGES IN TAX, DEBT, CREDIT AND
DOCUMENTARY STAMP LAWS. 
  
 (a) If any law is enacted or adopted or amended after the date of this Agreement which deducts the Debt from the value of any Individual
Property for the purpose of taxation or which imposes a tax, either directly or indirectly, on the Debt or Lender’s interest in an Individual Property, Borrower will pay the tax, with interest and penalties thereon, if any. If Lender is advised
by counsel chosen by it that the payment of tax by Borrower would be unlawful or taxable to Lender or unenforceable or provide the basis for a defense of usury, then Lender shall have the option by written notice of not less than one hundred twenty
(120) days to declare the Debt immediately due and payable. 
  
 (b) Borrower will not claim or demand or be entitled to any credit or credits on account of the Debt for any part of the Taxes or Other Charges assessed against an Individual Property, or any part thereof, and no
deduction shall otherwise be made or claimed from the assessed value of an Individual Property, or any part thereof, for real estate tax purposes by reason of the Mortgages or the Debt. If such claim, credit or deduction shall be required by law,
Lender shall have the option, by written notice of not less than one hundred twenty (120) days, to declare the Debt immediately due and payable. 
  
 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 Mortgages, or any of the other Loan Documents or impose any other tax or charge on the same, Borrower will pay for the same, with interest and penalties thereon, if any. 
  
 Section 17.5. EXPENSES. 
  
 Borrower covenants and agrees to pay or, if Borrower fails to pay, to reimburse, Lender upon receipt of written notice from
Lender for all reasonable costs and expenses (including reasonable, actual attorneys’ fees and disbursements and the allocated costs of internal legal services and all actual disbursements of internal counsel) reasonably incurred by Lender in
accordance with this Agreement in connection with (a) the preparation, negotiation, execution and delivery of this Agreement and the other Loan Documents and the consummation of the transactions contemplated hereby and thereby and all the costs of
furnishing all opinions by counsel for Borrower (including without limitation any opinions reasonably requested by Lender as to any legal matters arising under this Agreement or the other Loan Documents with respect to 

  

 - 123 - 

 
the Properties); (b) Borrower’s ongoing performance of and compliance with Borrower’s respective agreements and covenants contained in this
Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date, including, without limitation, confirming compliance with environmental and insurance requirements; (c) following a request by Borrower,
Lender’s ongoing performance and compliance with all agreements and conditions contained in this Agreement and the other Loan Documents on its part to be performed or complied with after the Closing Date; (d) the negotiation, preparation,
execution, delivery and administration of any consents, amendments, waivers or other modifications to this Agreement and the other Loan Documents and any other documents or matters requested by Lender; (e) securing Borrower’s compliance with
any requests made pursuant to the provisions of this Agreement; (f) the filing and recording fees and expenses, title insurance and reasonable fees and expenses of counsel for providing to Lender all required legal opinions, and other similar
expenses incurred in creating and perfecting the Lien in favor of Lender pursuant to this Agreement and the other Loan Documents; (g) enforcing or preserving any rights, in response to third party claims or the prosecuting or defending of any action
or proceeding or other litigation, in each case against, under or affecting Borrower, this Agreement, the other Loan Documents, the Properties, or any other security given for the Loan; and (h) enforcing any obligations of or collecting any payments
due from Borrower under this Agreement, the other Loan Documents or with respect to the Properties or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a
“work-out” or of any insolvency or bankruptcy proceedings; provided, however, that Borrower shall not be liable for the payment of any such costs and expenses to the extent the same arise by reason of the gross negligence, illegal acts,
fraud or willful misconduct of Lender. 
  
 ARTICLE 18

 WAIVERS 
  
 Section 18.1. REMEDIES CUMULATIVE; WAIVERS. 
  
 The rights, powers and remedies of Lender under this Agreement shall be
cumulative and not exclusive of any other right, power or remedy which Lender may have against Borrower or Borrower Principal pursuant to this Agreement or the other Loan Documents, or existing at law or in equity or otherwise. Lender’s rights,
powers and remedies may be pursued singularly, concurrently or otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion. No delay or omission to exercise any remedy, right or power accruing upon an Event of
Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient. A waiver of one Default or Event of
Default with respect to Borrower shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any remedy, right or power consequent thereon. 
  
 Section 18.2. MODIFICATION, WAIVER
IN WRITING. 
  
 No modification, amendment, extension, discharge, termination or waiver of any provision of this Agreement, or of the Note, or of any other Loan Document, nor consent to any departure by Borrower therefrom, shall in any event be effective
unless the same shall be in a writing signed by the party against whom enforcement is sought, and then such waiver or 

  

 - 124 - 

 
consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to,
or demand on Borrower, shall entitle Borrower to any other or future notice or demand in the same, similar or other circumstances. 
  
 Section 18.3. DELAY NOT A WAIVER. 
  
 Neither any failure nor any delay on the part of Lender in insisting upon
strict performance of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under the Note or under any other Loan Document, or any other instrument given as security therefor, shall operate as
or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by way of limitation, by accepting payment
after the due date of any amount payable under this Agreement, the Note or any other Loan Document, Lender shall not be deemed to have waived any right either to require prompt payment when due of all other amounts due under this Agreement, the Note
or the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount. 
  
 Section 18.4. TRIAL BY JURY. 
  
 BORROWER, BORROWER PRINCIPAL AND LENDER EACH HEREBY AGREES NOT TO ELECT A
TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN
CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER, BORROWER PRINCIPAL AND LENDER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY
JURY WOULD OTHERWISE ACCRUE. EACH OF LENDER, BORROWER PRINCIPAL AND BORROWER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER, BORROWER PRINCIPAL AND LENDER. 
  
 Section 18.5. WAIVER OF
NOTICE. 
  
 Borrower shall not
be entitled to any notices of any nature whatsoever from Lender except with respect to matters for which this Agreement or the other Loan Documents specifically and expressly provide for the giving of notice by Lender to Borrower and except with
respect to matters for which Borrower is not, pursuant to applicable Legal Requirements, permitted to waive the giving of notice. Borrower hereby expressly waives the right to receive any notice from Lender with respect to any matter for which this
Agreement or the other Loan Documents do not specifically and expressly provide for the giving of notice by Lender to Borrower. 
  

 - 125 - 

 Section 18.6. REMEDIES OF BORROWER.

  
 In the event that a claim or adjudication is made that Lender
or its agents have acted unreasonably or unreasonably delayed acting in any case where by law or under this Agreement or the other Loan Documents, Lender or such agent, as the case may be, has an obligation to act reasonably or promptly, Borrower
agrees that neither Lender nor its agents shall be liable for any monetary damages, and Borrower’s sole remedies shall be limited to commencing an action seeking injunctive relief or declaratory judgment. The parties hereto agree that any
action or proceeding to determine whether Lender has acted reasonably shall be determined by an action seeking declaratory judgment. Lender agrees that, in such event, it shall cooperate in expediting any action seeking injunctive relief or
declaratory judgment. 
  
 Section 18.7.
CROSS-DEFAULT; CROSS-COLLATERALIZATION; WAIVER OF MARSHALLING OF ASSETS. 
  
 (a) Borrower acknowledges that the Lender has made the Loan
to Maker upon the security of its collective interest in the Properties and in reliance upon the aggregate of the Properties taken together being of greater value as collateral security than the sum of each Individual Property taken separately.
Borrower agrees that the Mortgages are and will be cross collateralized and cross defaulted with each other so that (i) an Event of Default under any of the Mortgages shall constitute an Event of Default under each of the other Mortgages which
secure the Note; (ii) an Event of Default under the Note or this Agreement shall constitute an Event of Default under each Mortgage; (iii) each Mortgage shall constitute security for the Note as if a single blanket lien were placed on all of the
Properties as security for the Note; and (iv) such cross collateralization shall in no event be deemed to constitute a fraudulent conveyance. 
  
 (b) To the fullest extent permitted by law, Borrower, for itself and its successors and assigns, waives all rights to a marshalling of the
assets of Borrower, Borrower’s partners and others with interests in Borrower, and of the Properties, and agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale of inverse order of alienation, homestead
exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents to a sale of the Properties for the collection of the Debt without any prior or different
resort for collection or of the right of Lender to the payment of the Debt out of the net proceeds of an Individual Property in preference to every other claimant whatsoever. In addition, Borrower, for itself and its successors and assigns, waives
in the event of foreclosure of any or all of the Mortgages, any equitable right otherwise available to Borrower which would require the separate sale of the Properties or require Lender to exhaust its remedies against any Individual Property or any
combination of the Properties before proceeding against any other Individual Property or combination of Properties; and further in the event of such foreclosure Borrower does hereby expressly consents to and authorizes, at the option of Lender, the
foreclosure and sale either separately or together of any combination of the Properties. 
  

 - 126 - 

 Section 18.8. CONTRIBUTIONS AND
WAIVERS. 
  
 (a) As a result of the transactions contemplated by this Agreement, each Borrower will benefit, directly and indirectly, from each Borrower’s obligation to pay the Debt and perform its Obligations and in consideration therefore each
Borrower desires to enter into an allocation and contribution agreement among themselves as set forth in this Section 9.8 to allocate such benefits among themselves and to provide a fair and equitable agreement to make contributions among each of
the Borrowers in the event any payment is made by any individual Borrower hereunder to Lender (such payment being referred to herein as a “Contribution,” and for purposes of this Section 18.8, includes any exercise of recourse by
Lender against any Collateral of a Borrower and application of proceeds of such Collateral in full or partial satisfaction of such Borrower’s obligations, to Lender under the Loan Documents). 
  
 (b) Each Borrower shall be liable hereunder with respect to
the Obligations only for such total maximum amount (if any) that would not render its Obligations hereunder or under any of the Loan Documents subject to avoidance under Section 548 of the Bankruptcy Code or any comparable provisions of any State
law. 
  
 (c) In order to provide for a fair and
equitable contribution among Borrowers in the event that any Contribution is made by an individual Borrower (a “Funding Borrower”), such Funding Borrower shall be entitled to a reimbursement Contribution (“Reimbursement
Contribution”) from all other Borrowers for all payments, damages and expenses incurred by that Funding Borrower in discharging any of the Obligations, in the manner and to the extent set forth in this Section 18.8. 
  
 (d) For purposes hereof, the “Benefit
Amount” of any individual Borrower as of any date of determination shall be the net value of the benefits to such Borrower (as measured by the difference of the value of the Individual Properties owned by the other Borrowers, less the
portion of the Loan proceeds received by such other Borrowers) resulting from the other Borrowers having guaranteed or mortgaged their Individual Properties to secure the Obligations of such Borrower to Lender. 
  
 (e) Each Borrower shall be liable to a Funding Borrower in
an amount equal to ninety-five percent (95%) of the excess of the fair saleable value of the property of such Borrower over the total liabilities of such Borrower (including the maximum amount reasonably expected to become due in respect of
contingent liabilities) determined as of the date on which the payment made by a Funding Borrower is deemed made for purposes hereof (giving effect to all payments made by other Funding Borrowers as of such date in a manner to maximize the amount of
such Contributions); provided, however, that no such Borrower shall be liable to a Funding Borrower in an amount exceeding the Benefit Amount relating to such Borrower. 
  
 (f) In the event that at any time there exists more than one Funding Borrower with respect to any
Contribution (in any such case, the “Applicable Contribution”), then Reimbursement Contributions from other Borrowers pursuant hereto shall be allocated among such Funding Borrowers in proportion to the total amount of the
Contribution made for or on account of the other Borrowers by each such Funding Borrower pursuant to the Applicable Contribution. In the event that at any time any Borrower pays an amount hereunder in excess of the amount calculated pursuant to this
Section 18.8 above, that Borrower shall be deemed to be a 

  

 - 127 - 

 
Funding Borrower to the extent of such excess and shall be entitled to a Reimbursement Contribution from the other Borrowers in accordance with the
provisions of this Section. 
  
 (g) Each Borrower
acknowledges that the right to Reimbursement Contribution hereunder shall constitute an asset in favor of Borrower to which such Reimbursement Contribution is owing. 
  
 (h) No Reimbursement Contribution payments payable by a Borrower pursuant to the terms of this Section 18.8
shall be paid until all amounts then due and payable by all of Borrowers to Lender, pursuant to the terms of the Loan Documents, are paid in full. Nothing contained in this Section 18.8 shall limit or affect in any way the Obligations of any
Borrower to Lender under this Note or any other Loan Documents. 
  
 (i) To the extent permitted under applicable Legal Requirements, each Borrower waives: 
  
 (A) any right to require Lender to proceed against any other Borrower or any other person or to proceed against or exhaust any security
held by Lender at any time or to pursue any other remedy in Lender’s power before proceeding against Borrower; 
  
 (B) the defense of the statute of limitations in any action against any other Borrower or for the collection of any indebtedness or the
performance of any obligation under the Loan; 
  
 (C) any defense based upon any legal disability or other defense of any other Borrower, any guarantor of any other person or by reason of the cessation or limitation of the liability of any other Borrower or any guarantor from any cause
other than full payment of all sums payable under the Note, this Agreement and any of the other Loan Documents; 
  
 (D) any defense based upon any lack of authority of the officers, directors, partners or agents acting or purporting to act on behalf of
any other Borrower or any principal of any other Borrower or any defect in the formation of any other Borrower or any principal of any other Borrower; 
  
 (E) 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 any other respects more burdensome than that of a principal; 
  
 (F) any defense based upon any failure by Lender to obtain collateral for the indebtedness or failure by Lender to perfect a lien on any collateral; 
  
 (G) presentment, demand, protest and notice of any kind; 
  
 (H) any defense based upon any failure of Lender to give
notice of sale or other disposition of any collateral to any other Borrower or to any other person or entity or any defect in any notice that may be given in connection with any sale or disposition of any collateral; 
  

 - 128 - 

 (I) any defense based upon any failure of Lender to comply with Applicable Laws in
connection with the sale or other disposition of any collateral, including, without limitation, any failure of Lender to conduct a commercially reasonable sale or other disposition of any collateral; 
  
 (J) any defense based upon any election by Lender, in any
bankruptcy proceeding, of the application or non-application of Section 1111(6)(2) of the Bankruptcy Code or any successor statute; 
  
 (K) any defense based upon any use of cash collateral under Section 363 of the Bankruptcy Code; 
  
 (L) any defense based upon any agreement or stipulation
entered into by Lender with respect to the provision of adequate protection in any bankruptcy proceeding; 
  
 (M) any defense based upon any borrowing or any grant of a security interest under Section 364 of the Bankruptcy Code; 
  
 (N) any defense based upon the avoidance of any security
interest in favor of Lender for any reason; 
  
 (O) any defense based upon any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding, including any discharge of, or bar or stay against collecting, all or any of the obligations
evidenced by the Note or owing under any of the Loan Documents; and 
  
 (P) any defense or benefit based upon Borrower’s, or any other party’s, resignation of the portion of any obligation secured by the applicable Mortgages to be satisfied by any payment from any other Borrower
or any such party. 
  
 (j) To the extent
permitted under applicable Legal Requirements, each Borrower waives: 
  
 (A) all rights and defenses arising out of an election of remedies by Lender even though the election of remedies, such as nonjudicial foreclosure with respect to security for the Loan or any other amounts owing under
the Loan Documents, has destroyed Borrower’s rights of subrogation and reimbursement against any other Borrower; 
  
 (B) all rights and defenses that Borrower may have because any of Debt is secured by real property. This means, among other things: (i)
Lender may collect from Borrower without first foreclosing on any real or personal property collateral pledged by any other Borrower, (ii) if Lender forecloses on any real property collateral pledged by any other Borrower, (a) the amount of the Debt
may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price, (b) Lender may collect from Borrower even if any other Borrower, by foreclosing on the real
property collateral, has destroyed any right Borrower may have to 

  

 - 129 - 

 
collect from any other Borrower. This is an unconditional and irrevocable waiver of any rights and defenses Borrower may have because any of the Debt is
secured by real property; and 
  
 (C) any claim
or other right which Borrower might now have or hereafter acquire against any other Borrower or any other person that arises from the existence or performance of any obligations under the Note, this Agreement, the Mortgages or the other Loan
Documents, including, without limitation, any of the following: (i) any right of subrogation, reimbursement, exoneration, contribution, or indemnification; or (ii) any right to participate in any claim or remedy of Lender against any other Borrower
or any collateral security therefor, whether or not such claim, remedy or right arises in equity or under contract, statute or common law. 
  
 Section 18.9. WAIVER OF STATUTE OF LIMITATIONS.

  
 Borrower hereby expressly waives and releases, to the fullest
extent permitted by law, the pleading of any statute of limitations as a defense to payment of the Debt or performance of its Other Obligations. 
  
 Section 18.10. WAIVER OF COUNTERCLAIM. 
  
 Borrower hereby waives the right to assert a counterclaim, other than a
compulsory counterclaim, in any action or proceeding brought against it by Lender or its agents. 
  
 Section 18.11. BORROWER/MAKER. 
  
 In the event that the Maryland Guarantor is released as security for the Loan, all references herein to “Borrower”
shall refer to Maker. 
  
 ARTICLE 19 
 GOVERNING LAW 
  
 Section 19.1. CHOICE OF LAW. 
  
 This Agreement 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, (a) that with respect to the creation, perfection, priority and enforcement
of any Lien created by the Loan Documents, and the determination of deficiency judgments, the laws of the state where the applicable Individual Property is located shall apply, and (b) with respect to the security interest in each of the Reserve
Accounts and the Lockbox Account, the laws of the state where each such account is located shall apply. 
  
 Section 19.2. SEVERABILITY. 
  

Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of 

  

 - 130 - 

 
such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
  
 Section 19.3. PREFERENCES. 

 
 Lender shall have the continuing and exclusive right to apply or reverse
and reapply any and all payments by Borrower to any portion of the obligations of Borrower hereunder. To the extent Borrower makes a payment or payments to Lender, which payment or proceeds or any part thereof are subsequently invalidated, declared
to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any Creditors Rights Laws, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds
received, the obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Lender. 
  
 ARTICLE 20 
 MISCELLANEOUS 
  
 Section 20.1. SURVIVAL. 
  
 This Agreement and all covenants, agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the making by Lender of the Loan and the execution and delivery
to Lender of the Note, and shall continue in full force and effect so long as all or any of the Debt is outstanding and unpaid unless a longer period is expressly set forth herein or in the other Loan Documents. Whenever in this Agreement any of the
parties hereto is referred to, such reference shall be deemed to include the legal representatives, successors and assigns of such party. All covenants, promises and agreements in this Agreement, by or on behalf of Borrower, shall inure to the
benefit of the legal representatives, successors and assigns of Lender. 
  
 Section 20.2. LENDER’S DISCRETION. 
  
 Whenever pursuant to this Agreement, Lender exercises any right given to it to approve or disapprove, or any arrangement or term is to be satisfactory to
Lender, the decision of Lender to approve or disapprove or to decide whether arrangements or terms are satisfactory or not satisfactory shall (except as is otherwise specifically herein provided) be in the sole discretion of Lender. 
  
 Section 20.3. HEADINGS. 
  
 The Article and/or Section headings and the Table of Contents in this
Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
  
 Section 20.4. COST OF ENFORCEMENT. 
  
 In the event (a) that any Mortgage is foreclosed in whole or in part, (b) of
the bankruptcy, insolvency, rehabilitation or other similar proceeding in respect of Borrower or any of its 

  

 - 131 - 

 
constituent Persons or an assignment by Borrower or any of its constituent Persons for the benefit of its creditors, or (c) Lender exercises any of its other
remedies under this Agreement or any of the other Loan Documents, Borrower shall be chargeable with and agrees to pay all costs of collection and defense, including attorneys’ fees and costs, incurred by Lender or Borrower in connection
therewith and in connection with any appellate proceeding or post-judgment action involved therein, together with all required service or use taxes. 
  
 Section 20.5. SCHEDULES INCORPORATED. 
  
 The Schedules annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect as if set forth
in the body hereof. 
  
 Section 20.6. OFFSETS,
COUNTERCLAIMS AND DEFENSES. 
  
 Any assignee of Lender’s interest in and to this Agreement, the Note and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such documents
which Borrower may otherwise have against any assignor of such documents, and no such unrelated counterclaim or defense shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon such documents and any
such right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrower. 
  
 Section 20.7. NO JOINT VENTURE OR PARTNERSHIP; NO
THIRD PARTY BENEFICIARIES. 
  
 (a) Borrower and Lender intend that the relationships created hereunder and under the other Loan Documents be solely that of borrower and
lender. Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Properties other than that of mortgagee,
beneficiary or lender. 
  
 (b) This Agreement and
the other Loan Documents are solely for the benefit of Lender and Borrower (and Borrower Principal with respect to Article 4, Section 12.6, Article 13, Article 15 and Article 18) and nothing contained in this Agreement or the other Loan Documents
shall be deemed to confer upon anyone other than Lender and Borrower (and Borrower Principal with the provisions described above) any right to insist upon or to enforce the performance or observance of any of the obligations contained herein or
therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit of Lender and no other Person shall have standing to require satisfaction of such conditions in accordance with their
terms or be entitled to assume that Lender will refuse to make the Loan in the absence of strict compliance with any or all thereof and no other Person shall under any circumstances be deemed to be a beneficiary of such conditions, any or all of
which may be freely waived in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or desirable to do so. 
  
 (c) The general partners, members, principals and (if Borrower is a trust) beneficial owners of Borrower are experienced in the ownership
and operation of properties similar to the Properties, and Borrower and Lender are relying solely upon such expertise and business 

  

 - 132 - 

 
plan in connection with the ownership and operation of the Properties. Borrower is not relying on Lender’s expertise, business acumen or advice in
connection with the Properties. 
  
 (d)
Notwithstanding anything to the contrary contained herein, Lender 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. 
  
 (e) By accepting or approving anything required to be observed, performed or fulfilled or to be given to Lender pursuant to this Agreement, the Mortgages, 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, Lender 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 Lender. 
  
 (f) Borrower recognizes and acknowledges that in accepting this Agreement, the Note, the Mortgages and the other Loan Documents, Lender is
expressly and primarily relying on the truth and accuracy of the representations and warranties set forth in Article 4 of this Agreement without any obligation to investigate the Properties and notwithstanding any investigation of the Properties by
Lender; that such reliance existed on the part of Lender prior to the date hereof, that the warranties and representations are a material inducement to Lender in making the Loan; and that Lender would not be willing to make the Loan and accept this
Agreement, the Note, the Mortgages and the other Loan Documents in the absence of the warranties and representations as set forth in Article 4 of this Agreement. 
  
 Section 20.8. PUBLICITY. 
  
 All news releases, publicity or advertising by Borrower or its Affiliates through any media intended to reach the general
public which refers to the Loan, Lender, Banc of America Securities LLC, or any of their Affiliates shall be subject to the prior written approval of Lender, not to be unreasonably withheld. Lender shall be permitted to make any news, releases,
publicity or advertising by Lender or its Affiliates through any media intended to reach the general public which refers to the Loan, the Properties, Borrower, Borrower Principal and their respective Affiliates without the approval of Borrower or
any such Persons. Borrower also agrees that Lender may share any information pertaining to the Loan with Bank of America Corporation, including its bank subsidiaries, Banc of America Securities LLC and any other Affiliates of the foregoing, in
connection with the sale or transfer of the Loan or any Participations and/or Securities created. 
  
 Section 20.9. CONFLICT; CONSTRUCTION OF DOCUMENTS;
RELIANCE. 
  
 In the event of
any conflict between the provisions of this Agreement and any of the other Loan Documents, the provisions of this Agreement shall control. The parties hereto acknowledge that they were represented by competent counsel in connection with the
negotiation, drafting and execution of the Loan Documents and that such Loan Documents shall not be subject to the principle of construing their meaning against the party which drafted same. 

  

 - 133 - 

 
Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering into the Loan without relying
in any manner on any statements, representations or recommendations of Lender or any parent, subsidiary or Affiliate of Lender. Lender shall not be subject to any limitation whatsoever in the exercise of any rights or remedies available to it under
any of the Loan Documents or any other agreements or instruments which govern the Loan by virtue of the ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest any of them may acquire in Borrower, and Borrower hereby
irrevocably waives the right to raise any defense or take any action on the basis of the foregoing with respect to Lender’s exercise of any such rights or remedies. Borrower acknowledges that Lender engages in the business of real estate
financings and other real estate transactions and investments which may be viewed as adverse to or competitive with the business of Borrower or its Affiliates. 
  

Section 20.10. ENTIRE AGREEMENT. 
  
 This Agreement and the other Loan Documents contain the entire agreement of the parties hereto and thereto in respect of the
transactions contemplated hereby and thereby, and all prior agreements among or between such parties, whether oral or written between Borrower and Lender are superseded by the terms of this Agreement and the other Loan Documents. 
  
 Section 20.11. TAX
DISCLOSURE. 
  
 Notwithstanding
anything herein to the contrary, except as reasonably necessary to comply with applicable securities laws, each party (and each employee, representative or other agent of each party) hereto may disclose to any and all persons, without limitation of
any kind, any information with respect to the United States federal income “tax treatment” and “tax structure” (in each case, within the meaning of Treasury Regulation Section 1.6011-4) of the transactions contemplated hereby and
all materials of any kind (including opinions or other tax analyses) that are provided to such parties (or their representatives) relating to such tax treatment and tax structure; provided that with respect to any document or similar item
that in either case contains information concerning the tax treatment or tax structure of the transaction as well as other information, this sentence shall only apply to such portions of the document or similar item that relate to the United States
federal income tax treatment or tax structure of the transactions contemplated hereby. 
  
 [NO FURTHER TEXT ON THIS PAGE] 
  

 - 134 - 

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

					
	 BORROWER:

	
	 _________________________________________, a

	 _________________________________________

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	
	 _________________________________________, a

	 _________________________________________

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	
	 _________________________________________, a

	 _________________________________________

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	
	 _________________________________________, a

	 _________________________________________

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
	
	 BORROWER PRINCIPAL:
  
 Acknowledged and agreed to with respect to its obligations set forth in Article 4, Section 12.6, Article 13, Article 15 and Article 18
hereof:

  

					
	 _________________________________________, a

	 _________________________________________

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	
	 LENDER:
  

	BANK OF AMERICA, N.A., a national banking association
		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

 - 2 - 

 EXHIBIT A 
  

			
	 BORROWER

	  	 Tax ID #

	 Capital Lodging Properties I, L.P., a
 _______________________
	  	 
		
	 Capital Lodging Maryland Properties, LLC, a
 _______________________
	  	 
		
	 Capital Lodging TRS Operations I, Inc., a
 _______________________
	  	 

  

 EXHIBIT B 
  

Borrower Equity Ownership Structure 
  

 EXHIBIT C 
  

Allocated Loan Amounts 
  

 EXHIBIT D 
  

RESERVED 
  

 EXHIBIT E 
  

Credit Card Direction Letter 
  
 Form of Credit Card Direction Letter 
  
                     , 2004 
  
 [ADDRESSEE] 
  

	 	Re:	Payment Direction Letter for (describe property) (the “Property”) 

 [VISA/MASTERCARD/AMERICAN EXPRESS/ 
 DISCOVER Account No:
                    ] 
  
 To Whom it May Concern: 
  
 A new cash management system has been adopted in connection with our loan from Bank of America, N.A., its successors and/or assigns (“Lender”).
Consequently, from and after the date of this letter, all payments due the undersigned should be delivered as follows: 
  
 (a) If by check, money order, or its equivalent, please mail such items to: 
  
 _________________________________ 
  
 _________________________________ 
  
 _________________________________ 
  
 Attention: _________________________ 
  
 (b) If by wire transfer to: 
  

					
	Payee:	  	__________________	  	 
	ABA Routing #:	  	__________________	  	 
	For Account: Account #:	  	__________________	  	 
	Bank Contact:	  	__________________	  	 

  
 This payment direction
may not be rescinded or altered, except by a written direction signed by Lender or its agent. 
  
 We appreciate your cooperation. 
  

	
	 Very truly yours,

	
	 
	[BORROWER]

  

 EXHIBIT F 
  

ANNUAL BUDGET 
  

 EXHIBIT G 
  

FORM OF OPERATING STATEMENT 
  

 - 2 - 

 EXHIBIT H 
  

RESERVED 
  

 SCHEDULE I 
  
 REQUIRED REPAIRS 
  

			
	 REPAIR

	  	 RESERVE AMOUNT

  

 SCHEDULE II 
  
 REPLACEMENTS 
  

 SCHEDULE III 
  
 FRANCHISE AGREEMENT DESCRIPTIONS 
  

 SCHEDULE IV 
  
 [GROUND LEASE DESCRIPTION] 
  

 SCHEDULE V 
  
 OPERATING LEASE DESCRIPTIONS 
  

 SCHEDULE VI 
  
 Net Operating Income for each of the Twelve Months Preceding the Closing Date 
  

 SCHEDULE VII 
  
 LIST OF FRANCHISES FOR EACH INDIVIDUAL PROPERTY 
  

 SCHEDULE VIII 
  
 CLOSING NOI FOR EACH INDIVIDUAL PROPERTY

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]