Document:

Exhibit 10.11

Exhibit 10.11

Prepared by and after recording return to:

Nixon Peabody LLP

437 Madison Avenue

New York, New York 10022

Attn: Arthur J. Rosner, Esq.

Property: 8440 Sunset Boulevard

West Hollywood, California

RESTATEMENT AND MODIFICATION OF

DEED OF TRUST, SECURITY AGREEMENT,

ASSIGNMENT OF RENTS AND FIXTURE FILING

THIS RESTATEMENT AND MODIFICATION OF DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF RENTS
AND FIXTURE FILING (the “Agreement”) is executed as of September 30, 2010 (the
“Execution Date”), but effective for all purposes as of July 11, 2010 (the “Effective
Date”), by and between MONDRIAN HOLDINGS LLC, a Delaware limited liability company, whose
address is c/o Morgans Hotel Group, 475 Tenth Avenue, New York, New York 10018 (the
“Borrower”), and BANK OF AMERICA, NATIONAL ASSOCIATION, AS SUCCESSOR BY MERGER TO LASALLE
BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE BENEFIT OF THE HOLDERS OF WACHOVIA BANK COMMERCIAL
MORTGAGE TRUST, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-WHALE 8, having a place
of business at 540 West Madison Street, Mail Code IL4-540-18-04, Chicago, Illinois 60661 (the
“Lender”).

R E C I T A L S:

A. Wachovia Bank, National Association (“Original Lender”) made a loan (the
“Loan”) to Borrower in the amount of $120,500,000.00, which Loan is evidenced by that
certain Promissory Note A-1 by Borrower to Original Lender dated as of October 6, 2006
(representing $60,250,000.00 of the total Debt) (“Note A-1”) and that certain Promissory
Note A-2 (representing $60,250,000.00 of the total Debt) by Borrower to Original Lender dated as of
October 6, 2006 (“Note A-2”, together with Note A-1, as modified by the A-1 Note
Modification Agreement and A-2 Note Modification Agreement (as such terms are hereinafter defined),
respectively, hereinafter collectively, the “Note”).

B. In order to secure Borrower’s obligations under Note A-1 and Note A-2, Borrower entered
into and granted to First American Title Insurance Company, in its capacity as trustee for the
benefit of the Original Lender (the “Trustee”), that certain Deed of Trust, Security
Agreement, Assignment of Rents and Fixture Filing dated as of October 6, 2006 (the “Deed of
Trust”), which Deed of Trust was recorded in the Office of the County Recorder of the County
of Los Angeles, State of California (the “Office”) on October 25, 2006, as Instrument
No. 06-2368097, and which Deed of Trust encumbers certain real property located at 8440 Sunset
Boulevard, West Hollywood, California, which real property is more particularly described on
Exhibit A attached hereto.

 

 

 

C. The Deed of Trust was assigned by Original Lender to LaSalle, as more particularly set
forth in that certain Assignment recorded on December 31, 2007, in the Official Records as
Instrument No. 20072857366.

D. By virtue of a merger, effective on October 17, 2008, Bank of America, National
Association, has succeeded to the interests of LaSalle in and to the Loan Documents.

E. Effective as of the Effective Date, Borrower and Lender have modified the Note by and in
accordance with the terms of that certain Modification to Promissory Note A-1 (the “A-1 Note
Modification Agreement”) and that certain Modification to Promissory Note A-2 (the “A-2
Note Modification Agreement”, together with the A-1 Note Modification Agreement, hereinafter
collectively, the “Note Modification Agreement”).

F. In connection with the Note Modification Agreement, Borrower and Lender have agreed to
modify certain terms and provisions of the Deed of Trust.

G. This Agreement, together with the Note Modification Agreement, are hereinafter referred to
collectively as the “Modification Agreements.”

H. Mondrian Holdings LLC, a New York limited liability company, has prior to the execution and
delivery of this Agreement executed and delivered in favor of
Borrower a Quitclaim Deed, dated as September 30, 2010, and having an effective date of September 28, 1998, covering the property
encumbered by the Deed of Trust.

I. In addition to modifying the terms of the Deed of Trust, Borrower and Lender desire to
Restate the Deed of Trust, all as more particularly set forth herein.

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Borrower and Lender hereby agree as follows:

A G R E E M E N T S:

1. Definitions (a). All capitalized terms not defined herein shall have the meanings
ascribed to such terms in the Deed of Trust.

2. Restatement of Deed of Trust. The Deed of Trust, a copy of which is attached hereto
as Exhibit B and made a part hereof, is incorporated herein and restated in its entirety,
including, but in no event limited to, the following grant portion of the Deed of Trust:

 

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NOW, THEREFORE, in consideration of the foregoing recitals and to secure the payment of the
principal of, prepayment premium (if any) and interest on the Note and all other obligations,
liabilities or sums due or to become due under this Security Instrument, the Payment
Guaranty, the Note or any other Loan Document, including, without limitation, interest on said
obligations, liabilities or sums (said principal, premium, interest and other sums being
hereinafter referred to as the “Debt”), Borrower has executed and delivered this Security
Instrument; and Borrower has irrevocably granted, and by these presents and by the execution and
delivery hereof does hereby irrevocably grant, bargain, sell, alien, demise, release, convey,
assign, transfer, deed, hypothecate, pledge, set over, warrant, mortgage and confirm to Trustee,
forever in trust WITH POWER OF SALE, all right, title and interest of Borrower, whether now owned
or hereafter acquired, in and to all of the following property, rights, interests and estates:

(a) the plot(s), piece(s) or parcel(s) of real property described in Exhibit A attached
hereto and made a part hereof (individually and collectively, hereinafter referred to as the
“Premises”);

(b) (i) all buildings, foundations, structures, fixtures, additions, enlargements,
extensions, modifications, repairs, replacements and improvements of every kind or nature
now or hereafter located on the Premises (hereinafter collectively referred to as the
“Improvements”), and (ii) to the extent permitted by law, the name or names, if any,
as may now or hereafter be used for any of the Improvements, and the goodwill associated
therewith;

(c) all easements, servitudes, rights-of-way, strips and gores of land, streets, ways,
alleys, passages, sewer rights, water, water courses, water rights and powers, ditches,
ditch rights, reservoirs and reservoir rights, air rights and development rights, lateral
support, drainage, gas, oil and mineral rights, tenements, hereditaments and appurtenances
of any nature whatsoever, in any way belonging, relating or pertaining to the Premises or
the Improvements and the reversion and reversions, remainder and remainders, whether
existing or hereafter acquired, and all land lying in the bed of any street, road or avenue,
opened or proposed, in front of or adjoining the Premises to the center line thereof and any
and all sidewalks, drives, curbs, passageways, streets, spaces and alleys adjacent to or
used in connection with the Premises and/or Improvements and all the estates, rights,
titles, interests, property, possession, claim and demand whatsoever, both in law and in
equity, of Borrower of, in and to the Premises and Improvements and every part and parcel
thereof, with the appurtenances thereto;

(d) all machinery, equipment, systems, fittings, apparatus, appliances, furniture,
furnishings, tools, fixtures, Inventory (as hereinafter defined) and articles of personal
property and accessions thereof and renewals, replacements thereof and substitutions
therefor (including, but not limited to, all plumbing, lighting and elevator fixtures,
office furniture, beds, bureaus, chiffonniers, chests, chairs, desks, lamps, mirrors,
bookcases, tables, rugs, carpeting, drapes, draperies, curtains, shades, venetian blinds,
wall coverings, screens, paintings, hangings, pictures, divans, couches, luggage carts,
luggage racks, stools, sofas, chinaware, flatware, linens, pillows, blankets, glassware,
foodcarts, cookware, dry cleaning facilities, dining room wagons, keys or other entry
systems, bars, bar fixtures, liquor and other drink dispensers, icemakers, radios,
television sets, intercom and paging equipment, electric and electronic equipment, dictating
equipment, telephone systems, computerized accounting systems, engineering equipment,
vehicles, medical equipment, potted plants, heating, lighting and plumbing

 

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fixtures, fire prevention and extinguishing apparatus, theft prevention equipment,
cooling and air-conditioning systems, elevators, escalators, fittings, plants, apparatus,
stoves, ranges, refrigerators, laundry machines, tools, machinery, engines, dynamos, motors,
boilers, incinerators, switchboards, conduits, compressors, vacuum cleaning systems, floor
cleaning, waxing and polishing equipment, call systems, brackets, signs, bulbs, bells, ash
and fuel, conveyors, cabinets, lockers, shelving, spotlighting equipment, dishwashers,
garbage disposals, washers and dryers), other customary hotel equipment and other property
of every kind and nature whatsoever owned by Borrower, or in which Borrower has or shall
have an interest, now or hereafter located upon, or in, and used in connection with the
Premises or the Improvements, or appurtenant thereto, and all building equipment, materials
and supplies of any nature whatsoever owned by Borrower, or in which Borrower has or shall
have an interest, now or hereafter located upon, or in, and used in connection with the
Premises or the Improvements or appurtenant thereto, (hereinafter, all of the foregoing
items described in this paragraph (d) are collectively called the “Equipment”), all
of which, and any replacements, modifications, alterations and additions thereto, to the
extent permitted by applicable law, shall be deemed to constitute fixtures (the
“Fixtures”), and are part of the real estate and security for the payment of the
Debt and the performance of Borrower’s obligations. To the extent any portion of the
Equipment is not real property or fixtures under applicable law, it shall be deemed to be
personal property, and this Security Instrument shall constitute a security agreement
creating a security interest therein in favor of Lender under the UCC;

(e) all awards or payments, including interest thereon, which may hereafter be made
with respect to the Premises, the Improvements, the Fixtures, or the Equipment, whether from
the exercise of the right of eminent domain (including but riot limited to any transfer made
in lieu of or in anticipation of the exercise of said right), or for a change of grade, or
for any other injury to or decrease in the value of the Premises, the Improvements or the
Equipment or refunds with respect to the payment of property taxes and assessments, and all
other proceeds of the conversion, voluntary or involuntary, of the Premises, Improvements,
Equipment, Fixtures or any other Property or part thereof into cash or liquidated claims;

(f) all leases, tenancies, franchises, licenses and permits, Property Agreements and
other agreements affecting the use, enjoyment or occupancy of the Premises, the
Improvements, the Fixtures, or the Equipment or any portion thereof now or hereafter entered
into, whether before or after the filing by or against Borrower of any petition for relief
under the Bankruptcy Code and all reciprocal easement agreements, license agreements and
other agreements with Pad Owners (hereinafter collectively referred to as the
“Leases”), together with all receivables, revenues, rentals, credit card receipts,
receipts and all payments received which relate to the rental, lease, franchise and use of
space at the Premises or which relate to the Food and Beverage Lessee/Operators (it being
acknowledged by Lender that the security interest granted hereunder in receivables,
revenues, rentals, credit card receipts, receipts and all payments received which relate to
the Food and Beverage Lessee/Operators shall not attach to interests of third-party joint
venture partners of Borrower which are not Affiliates of Borrower) and rental and use of
guest rooms or meeting rooms or banquet rooms or recreational facilities or bars,

 

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 beverage or food sales, vending machines, mini-bars, room service,
telephone, video and television systems, electronic mail, internet connections, guest
laundry, bars, the provision or sale of other goods and services, and all other payments
received from guests or visitors of the Premises, and other items of revenue, receipts or
income as identified in the Uniform System of Accounts (as hereinafter defined), all cash or
security deposits, lease termination payments, advance rentals and payments of similar
nature and guarantees or other security held by, or issued in favor of, Borrower in
connection therewith to the extent of Borrower’s right or interest therein and all
remainders, reversions and other rights and estates appurtenant thereto, and all base,
fixed, percentage or additional rents, and other rents, oil and gas or other mineral
royalties, and bonuses, issues, profits and rebates and refunds or other payments made by
any Governmental Authority from or relating to the Premises, the Improvements, the Fixtures
or the Equipment plus all rents, common area charges and other payments now existing or
hereafter arising, whether paid or accruing before or after the filing by or against
Borrower of any petition for relief under the Bankruptcy Code (the “Rents”) and all
proceeds from the sale or other disposition of the Leases and the right to receive and apply
the Rents to the payment of the Debt;

(g) all proceeds of and any unearned premiums on any insurance policies covering the
Premises, the Improvements, the Fixtures, the Rents or the Equipment, including, without
limitation, the right to receive and apply the proceeds of any insurance, judgments, or
settlements made in lieu thereof, for damage to the Premises, the Improvements, the Fixtures
or the Equipment and all refunds or rebates of Impositions, and interest paid or payable
with respect thereto;

(h) all deposit accounts, securities accounts, funds or other accounts maintained or
deposited with Lender, or its assigns, in connection herewith, including, without
limitation, the Security Deposit Account (to the extent permitted by law), the Engineering
Escrow Account, the Central Account, the Sub-Accounts and the Escrow Accounts and all monies
and investments deposited or to be deposited in such accounts;

(i) all accounts receivable, contract rights, franchises, interests, estate or other
claims, both at law and in equity, now existing or hereafter arising, and relating to the
Premises, the Improvements, the Fixtures or the Equipment, not included in Rents;

(j) all now existing or hereafter arising claims against any Person with respect to any
damage to the Premises, the Improvements, the Fixtures or the Equipment, including, without
limitation, damage arising from any defect in or with respect to the design or construction
of the Improvements, the Fixtures or the Equipment and any damage resulting therefrom;

(k) all deposits or other security or advance payments, including rental payments now
or hereafter made by or on behalf of Borrower to others, with respect to (i) insurance
policies, (ii) utility services, (iii) cleaning, maintenance, repair or similar services,
(iv) refuse removal or sewer service, (v) parking or similar services or rights and (vi)
rental of Equipment, if any, relating to or otherwise used in the operation of the Premises,
the Improvements, the Fixtures or the Equipment;

 

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(l) all intangible property now or hereafter relating to the Premises, the
Improvements, the Fixtures or the Equipment or its operation, including, without limitation,
software, letter of credit rights, trade names, trademarks (including, without limitation,
any licenses of or agreements to license trade names or trademarks now or hereafter entered
into by Borrower), logos, building names and goodwill;

(m) all now existing or hereafter arising advertising material, guaranties, warranties,
building permits, other permits, licenses, plans and specifications, shop and working
drawings, soil tests, appraisals and other documents, materials and/or personal property of
any kind now or hereafter existing in or relating to the Premises, the Improvements, the
Fixtures, and the Equipment;

(n) all now existing or hereafter arising drawings, designs, plans and specifications
prepared by architects, engineers, interior designers, landscape designers and any other
consultants or professionals for the design, development, construction, repair and/or
improvement of the Property, as amended from time to time;

(o) the right, in the name of and on behalf of Borrower, to appear in and defend any
now existing or hereafter arising action or proceeding brought with respect to the Premises,
the Improvements, the Fixtures or the Equipment and to commence any action or proceeding to
protect the interest of Lender in the Premises, the Improvements, the Fixtures or the
Equipment;

(p) all accounts, chattel paper, deposit accounts, fixtures, general intangibles,
goods, instruments and securities accounts (each as defined in the Uniform Commercial Code
as in effect from time to time in the State of California in which the Premises is located
(the “UCC Collateral”); and

(q) all proceeds, products, substitutions and accessions (including claims and demands
therefor) of each of the foregoing.

AND FURTHER, in consideration of the foregoing recitals and to secure the Debt as aforesaid,
Borrower by these presents and by the execution and delivery hereof does hereby irrevocably grant,
bargain, sell, alien, demise, release, convey, assign, transfer, deed, hypothecate, pledge, set
over, warrant, mortgage and confirm to Lender, forever, all right, title and interest of Borrower,
whether now owned or hereafter acquired, in and to the Equipment, the Fixtures, the UCC Collateral
and all other personal property described above. To the extent any portion of the Equipment is not
real property or fixtures under applicable law, it shall be deemed to be personal property, and
this Security Instrument shall constitute a security agreement creating a security interest therein
in favor of Lender under the UCC.

All of the foregoing items (a) through (p), together with all of the right, title and interest
of Borrower therein, are collectively referred to as the “Property”.

TO HAVE AND TO HOLD the above granted and described Property unto Trustee, in trust, for the
proper use and benefit of Lender, and the successors and assigns of Lender in fee simple, forever.

 

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PROVIDED, ALWAYS, and these presents are upon this express condition, if Borrower shall well
and truly pay and discharge the Debt and perform and observe the terms, covenants and conditions
set forth in the Loan Documents, then these presents and the estate hereby granted shall cease and
be void.

(a) In addition to the restatement of the Deed of Trust, as set forth above, this Agreement
amends the Deed of Trust. Notwithstanding anything in this Agreement or any of the other Loan
Documents to the contrary, the amendments to the Deed of Trust set forth in this Agreement shall
control over the original terms of the Deed of Trust incorporated and restated herein.

3. Principal Reduction; Outstanding Principal Balance of the Loan; Special Servicing
Fee.

(a) Concurrently with the execution of this Agreement, Lender acknowledges the receipt of the
following:

(i) a wire transfer from Borrower of good funds equal to $8,501,946.47, which amount has been
applied to reduce the principal amount due under Note A-1; and

(ii) a wire transfer from the Escrow Accounts of good funds equal to $8,501,946.47, which wire
transfer was made by Lender pursuant to Borrower’s authorization, and which amount has been applied
to reduce the principal amount due under Note A-2.

(b) (i) By virtue of Lender’s receipt of the funds set forth in Section 3(a)(i) above, Lender
and Borrower hereby acknowledge and agree that the outstanding principal amount of the Loan
allocated to Note A-1 is presently $51,748,053.53.

(ii) By virtue of Lender’s receipt of the funds set forth in Section 3(a)(ii) above, Lender
and Borrower hereby acknowledge and agree that the outstanding principal amount of the Loan
allocated to Note A-2 is presently $51,748,053.53.

(c) As a condition precedent to the effectiveness of this Agreement, on or before the
Execution Date, Borrower shall deliver by wire transfer to CWCapital Asset Management LLC good
funds equal to $602,500.00 as a special servicing fee in connection with the Modification
Agreements.

4. Amendment to Definition of Debt Service Coverage.

(a) As of the Effective Date, the definition of “Debt Service Coverage” in the Deed of Trust
shall mean the following only with respect to its use in Section 2.1(e) of the Note:

“Debt Service Coverage” shall mean the quotient obtained by dividing Adjusted Net Cash
Flow by the sum of the (a) aggregate payments of interest, principal and all of the sums due for
such specified period under the Note (determined as of the date the calculation of Debt Service
Coverage is required or requested hereunder) and (b) aggregate payment of interest, principal and
all other sums due for such specified period pursuant to the terms of subordinate or mezzanine
financing, if any, then affecting or related to the Property or, if Debt Service Coverage, is being
calculated in connection with a request for consent to any subordinate or
mezzanine financing, then proposed. In determining Debt Service Coverage, the applicable
interest rate for the Loan and for any floating rate loan referred to in clause (b) above, if any,
shall be the LIBOR Margin, with respect to the Loan, and the applicable margin over the applicable
index, with respect to any other loan referred to in clause (b) above.

 

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5. Cash Management.

(a) Section 5.05(a) of the Deed of Trust is hereby amended by deleting clause (viii) thereof
and replacing it with the following:

“(viii) eighth, the balance, if any, to the Curtailment Reserve Sub-Account.”

(b) Section 5.11 of the Deed of Trust is hereby amended by (i) deleting the proviso in the
first sentence thereof commencing with “provided, that whenever, from time to time,” and continuing
through the end of the first sentence, and (ii) adding the following sentence to the end thereof:
“In furtherance of the foregoing, Lender shall be permitted to apply funds in the Curtailment
Reserve Sub-Account toward any and all special servicing fees incurred by Lender while the Loan is
outstanding, which special servicing fees are due and payable monthly, in advance, on the first
(1st) day of each calendar month during any Special Servicing Period (as that term is
defined in that certain Pooling and Servicing Agreement, dated as of June 1, 2007, among Wachovia
Large Loan, Inc., as Depositor, Wachovia Bank, National Association, as Servicer, Wachovia Bank,
National Association, as Special Servicer and LaSalle Bank National Association, as Trustee, in the
amount of 0.0208% (i.e., 0.000208) of the then outstanding principal balance of the Note per
month.”

6. Rate Cap Agreement.

(a) The fifth sentence of Section 5.10 of the Deed of Trust is hereby amended to read in its
entirety as follows:

“In the event that (a) the long-term unsecured debt obligations or the
counterparty rating of the Counterparty are downgraded by the Rating Agency below “A+” or
its equivalent or (b) the Counterparty shall default in any of its obligations under the
Rate Cap Agreement, Borrower shall, at the request of Lender, promptly but in all events
within thirty (30) days, replace the Rate Cap Agreement with an agreement having identical
payment terms and maturity as the Rate Cap Agreement and which is otherwise in form and
substance substantially similar to the Rate Cap Agreement and otherwise acceptable to Lender
with a cap provider with a long-term unsecured debt or counterparty rating of at least “A+”
(or its equivalent) by each Rating Agency, or which will allow each Rating Agency to
reaffirm their then current ratings of all rated certificates issued in connection with the
Securitization.

(b) The definition of Rate Cap Agreement in Section 1.01 of the Deed of Trust is hereby
amended to read in its entirety as follows:

“Rate Cap Agreement” shall mean that certain interest rate protection agreement
(together with the confirmation and schedules related thereto) with a notional amount which
shall not at any time be less than the Principal Amount and a LIBOR strike equal
to or less than 4.25% per annum entered into by Borrower in accordance with the terms hereof
or the other Loan Documents and any similar interest rate cap or collar agreements
subsequently entered into in replacement or substitution therefor by Borrower with respect
to the Loan.

 

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7. Covenants Related to Future Default

(a) Escrow Agreement; Delivery of Conveyance Documents into Escrow.

(i) On the date hereof, Borrower, shall execute and deliver to Lender, and shall cause
Guarantor to consent to, that certain Escrow Agreement of even date herewith (the “Escrow
Agreement”) by and among Borrower, Lender and First American Title Insurance Company, in its
capacity as escrow agent thereunder (“Escrowee”), a copy of which Escrow Agreement is
attached hereto as Exhibit C. Further, Borrower and Guarantor, as appropriate, shall
execute and have notarized (to the extent required), for deposit into escrow, the documents
attached as exhibits to said Escrow Agreement (collectively, the “Conveyance Documents”).

(ii) In the event that any Event of Default shall occur and continue under the Modification
Agreements or any of the other Loan Documents for (A) a period of five (5) days after notice from
Lender in the case of any default in the payment of any regularly scheduled payment of principal,
interest or any amount required to be escrowed, or (B) for a period of thirty (30) days after
notice from Lender in the case of any other default (each an “Uncured Event of Default”),
Lender and/or its designee (whether Lender or its designee, the “Transferee”) shall have
the right (but shall not be obligated) to direct Escrowee (with a copy of such direction notice
being furnished to Borrower) to break escrow, release and deliver the Conveyance Documents to
Lender and record the Conveyance Deed (as defined in Section 7(b) below) in accordance with the
terms of the Escrow Agreement, all as more particularly set forth therein. Additionally, Lender,
any other Transferee (if other than Lender) and Borrower shall cooperate to effect a prompt
transition of management of the Property, in accordance with the terms of the Consent and
Agreement, dated as of October 6, 2006, entered into by Morgans Hotel Group Management LLC for the
benefit of Lender in connection with the Loan.

(b) Cooperation. Neither Borrower, nor any of its Affiliates, including, without
limitation, Guarantor, shall challenge the validity of the transfer of the Property to Transferee,
provided such transfer is effectuated in a manner consistent with the terms of this Agreement, the
Escrow Agreement and the Conveyance Documents, or allege that the Conveyance Documents are intended
as a security in the nature of a deed of trust, mortgage or other security instrument within the
meaning of any applicable statute or case law. To ensure the enforceability of the transfers
contemplated pursuant to this Agreement, the Escrow Agreement and the Conveyance Documents,
Borrower will also execute and deliver any and all consents and stipulations reasonably requested
by Lender to (A) effectuate a foreclosure sale as contemplated by this Agreement, including, but
not limited to, powers of attorney in favor of Lender or other Transferee to effectuate the
transfers contemplated by this Agreement and (B) permit the issuance of an owner’s title insurance
policy reflecting fee simple title to the Property vested in Transferee without exception for any
interest in the Property in favor of Borrower. It is the clear intention of Borrower that one of
the documents comprising the Conveyance Documents is a recordable deed in lieu of foreclosure of a
good and valid deed of trust (the “Conveyance 
Deed”), and that Lender, as an 

 

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accommodation to Borrower and Guarantor, has agreed to
 forebear from causing the Conveyance Documents to be released from escrow and the Conveyance Deed
recorded by Escrowee until such time as an Uncured Event of Default has occurred in accordance with
the terms and conditions of Section 7(a)(ii) hereof, and that this is not intended as a security in
the nature of a deed of trust, mortgage or other security instrument within the meaning of any
applicable statute or case law. From the Execution Date until such time as the Conveyance Deed is
recorded (the “Conveyance Date”), Borrower shall: (i) provide Lender with concurrent copies
of all material written notices in any way related to the Property sent by Borrower, and prompt
copies of all material written notices in any way related to the Property received by Borrower (it
being understood that Borrower shall have no obligation to provide correspondence with Borrower’s
attorneys’ accountants, or investors), (ii) in connection with any third party action, whether
threatened or filed, in any way related to the Property, participate in meetings with Lender and
its counsel regarding factual matters and appear for depositions and/or witness preparation
sessions as may be reasonably requested by Lender’s counsel, (iii) maintain all material documents,
agreements, surveys, plats, approvals, written notices or other items relating to the Property, and
(iv) provide copies of such documents, agreements, surveys, plats, approvals, written notices, or
other items relating to the Property in the possession of Borrower and/or its Affiliates,
including, without limitation, Guarantor, as Lender or its counsel may reasonably request.

(c) At all times following the Execution Date, Borrower agrees to execute and deliver, or to
cause to be executed and delivered, such documents and to do, or cause to be done, such other acts
and things as might reasonably be requested by Lender to assure that the benefits of this Agreement
are realized by the parties hereto. Borrower specifically agrees to assist Lender and any other
Transferee (if other than Lender) in the disposition of any claims asserted against or on behalf of
the Property, Lender or Transferee in connection with the Property which arose prior to the
Conveyance Date.

(d) Uncontested Conveyance. Upon the occurrence of an Uncured Event of Default, if
Lender chooses to exercise its rights set forth in Section 7(a)(ii) hereof, Borrower consents to
the conveyance of title to the Property to Lender or any other Transferee (if other than Lender) in
accordance with the terms of Section 7(a)(ii) hereof. In furtherance of the foregoing, in the
event that Lender shall direct Escrowee to record the Conveyance Deed, other than as specifically
permitted in Section 7(i) below, Borrower and its respective members, employees and Affiliates,
including without limitation, Guarantor, shall not, nor permit any such Affiliate, including,
without limitation, Guarantor, or any other Person to, (i) contest, challenge, oppose or otherwise
attempt to delay, hinder, prevent or avoid such release of the Conveyance Documents or of the
conveyance of the Property, or file any appeal thereof or objection thereto, (ii) contest or
challenge the validity of the Conveyance Documents or of the transfer of the Property to Lender or
any other Transferee (if other than Lender), or file any appeal thereof or objection thereto,
(iii) seek any legal or equitable remedy to prevent, delay, contest, challenge or avoid any such
release or conveyance, or file any appeal thereof or objection thereto, (iv) institute any
insolvency proceeding (or acquiesce in or fail to contest any involuntary insolvency proceeding),
(v) otherwise directly or indirectly hinder, delay or obstruct any such release or conveyance, or
(vi) collude or conspire with any third party to do any of the foregoing. Without limiting the
generality of the foregoing, other than as specifically permitted in Section 7(i) below, Borrower
(A) knowingly and voluntarily waives, now and forever, the right to contest, challenge, avoid, or
seek any injunctive relief to prevent the release of the Conveyance Documents or the
conveyance of the Property, and (b) knowingly and voluntarily waives, now and forever, the right to
file any action or appeal to set aside or to otherwise contest or challenge any such release or
conveyance.

 

10

 

(e) Consent to Foreclosure. Borrower knowingly and voluntarily acknowledges that
Lender has the right to file a foreclosure action (the “Foreclosure Action”) on the
Property upon the occurrence of an Event of Default in accordance with the Loan Documents. Borrower
knowingly and voluntarily covenants and agrees now and forever that, neither Borrower nor any of
its Affiliates, including, without limitation, Guarantor, other than as specifically permitted in
Section 7(i) below, shall assert any defenses or contest, oppose or otherwise attempt to delay,
hinder, prevent or avoid Lender’s prosecution of the Foreclosure Action or challenge the validity
thereof or take any appeal thereof, and hereby knowingly and voluntarily agrees, after the issuance
of a judgment of foreclosure (the “Foreclosure Order”) in the Foreclosure Action, to
diligently and in good faith cooperate with Lender to effect any: (i) foreclosure by court action
or otherwise, or any other proceedings instituted by Lender in connection with realizing upon the
security granted pursuant to the Loan Documents or (ii) action to quiet title which may be
instituted by Lender to perfect its right, title, and interest in the Property. Subject to the
terms hereof, including, but not limited to, Section 7(i) below, Borrower shall, when requested by
Lender, knowingly and voluntarily expressly consent to such foreclosure in the manner reasonably
requested by Lender within two (2) Business Days of Lender’s request. Subject to the terms hereof,
including, but not limited to, Section 7(i) below, Borrower and Guarantor knowingly and voluntarily
waive, now and forever, the right to require a hearing in connection with any such foreclosure
proceeding, for appointment of a receiver for the Property or other suit or proceedings and further
knowingly and voluntarily waive the right, now and forever, to require sale of the Property in any
such suit to be made in parcels. Borrower and Guarantor may be named as defendants in any such
foreclosure proceeding.

(i) Upon the issuance of the Foreclosure Order, Borrower will execute and deliver any and all
documents reasonably requested by Lender to (i) effectuate the enforcement of the Foreclosure Order
and foreclosure sale, including, but not limited to, powers of attorney in favor of Lender, and
(ii) permit the issuance of an owner’s title insurance policy reflecting fee simple title to the
Property vested in Transferee without exception for any interest in the Property in favor of
Borrower or any of its Affiliates, including, without limitation, Guarantor.

(f) Action Constituting a Contest; Not a Limitation of Remedies. Other than as
specifically permitted in Section 7(i) below, if Borrower or any of its Affiliates, including,
without limitation, Guarantor, asserts any defenses or contests, challenges, opposes, appeals,
seeks to avoid or seeks an injunction prohibiting the release of the Conveyance Documents or
Lender’s right to proceed with the Foreclosure Action, appeals any judgment obtained in said
Foreclosure Action, or otherwise contests, challenges, hinders or delays the release of the
Conveyance Documents or the granting of a judgment of foreclosure or a foreclosure sale in such
Foreclosure Action, then any of such actions shall constitute a “Contest,” as defined in Section
18.32 of the Deed of Trust, and, in addition to Borrower and Guarantor being liable to Lender for
all damages which Lender may suffer as a result thereof and as set forth in said Section 18.32 of
the Deed of Trust, Borrower and Guarantor knowingly and voluntarily acknowledge and agree that they
shall be liable to Lender for all reasonable attorneys’ fees and court costs incurred by Lender
related to such a Contest. Nothing in this Agreement shall limit or impair or be deemed
to limit or impair the liability and obligations of Borrower and its Affiliates, including,
without limitation, Guarantor, to Lender under the Loan Documents in the event that Lender obtains
a judgment that Borrower or any of its Affiliates, including without limitation, Guarantor, has,
other than in good faith, as provided in Section 7(i) below, engaged in a Contest regarding
Lender’s right to obtain an release of the Conveyance Documents or to proceed with the Foreclosure
Action as provided for in this Agreement.

 

11

 

(g) Delivery of Items. Within three (3) Business Days of request by Lender following
the occurrence of an Event of Default, Borrower agrees to execute and/or deliver (to the extent in
Borrower’s possession, or otherwise obtainable by exercise of commercially reasonable efforts), as
applicable, the following items to Lender:

(i) Authorizations. Original or certified copies of all authorization documents
indicating the legal entity status of Borrower and Guarantor, together with such accompanying
certificates, consents, and approvals as may be required by Lender;

(ii) Books and Records. Certified copies of all books and records relating to the
Property and Borrower’s business operations thereon, together with income and expense statements
covering the operation of the Property for the term of Borrower’s ownership;

(iii) Construction Documents. Certified copies of all plans and specifications,
engineering data, as built drawings, blue prints, drawings, maps, plans, permits, certificates of
occupancy, general contractor agreements, architects’ agreements, engineer agreements and other
agreements relating to, affecting or engaged in connection with the construction or renovation of
the Property together with a schedule of all contractors, subcontractors, engineers, testing
companies and architects engaged in connection with the construction, renovation, alteration, or
any other construction-related work affecting any of the Property;

(iv) Keys. All keys, combinations, codes, electronic openers and other devices,
information or materials necessary for access to or the operation or maintenance of the Property;

(v) Leases. Certified copies of the Leases;

(vi) Licenses. Certified copies of any licenses and permits which affect the
Property;

(vii) Tax Bills. Certified copies of all real and personal property tax bills
relating to the Property for the prior two (2) years;

(viii) Title Documents. Any affidavits, releases, satisfactions, certificates or
other corrective title documents as may be required by Lender or its title insurer in order to
convey to Transferee marketable fee simple title to the Property subject only to the Permitted
Encumbrances and the applicable Leases;

(ix) Test Reports. Certified copies of all soil boring tests, environmental audits,
engineering reports and related information, if any, which Borrower has acquired or caused to be
acquired with respect to the Property;

 

12

 

(x) Utility Bills. Certified copies of all current utility bills for all utilities
servicing the Property including, without limitation, water, sewer, electric, and gas bills; and

(xi) Other Documents. Original or certified copies of any and all other documents or
instruments relating to the Property, Borrower or the Guarantor, as may be reasonably requested by
Lender or other Transferee.

(h) Authorization of Lender to Contact Parties. Without limiting or impairing
Lender’s rights as set forth in the Loan Documents, following the direction from Lender to Escrowee
to release the Conveyance Documents and to record the Conveyance Deed in accordance with Section
7(a)(ii) above, Borrower authorizes Lender, the Transferee and their respective employees,
officers, agents, representatives, directors, consultants, accountants or other designees
(collectively, the “Lender Parties”), without any prior approval or authorization, to
communicate fully, give direction to third parties, contact directly and meet and otherwise
coordinate with any and all parties deemed necessary by Lender Parties, in their sole discretion,
in connection with the Property (including, without limitation, the construction, development,
marketing, management, operation, financing, leasing and sale thereof), all without liability to or
consent of, further notice to or any participation by Borrower or any of its Affiliates, including,
without limitation, Guarantor. It is expressly agreed and acknowledged that the right of Lender
Parties hereunder shall include, without limitation, the unilateral and unqualified right to
discuss the status of the Property, direct third parties to act or perform services with respect to
the Property, share information directly, and negotiate with any engineers, architects,
contractors, subcontractors, managers, management companies, leasing agents, brokers, operators,
tenants, purchasers, builders, suppliers, governmental agencies, legal counsel, litigants in
actions and other third parties with respect to the Property. In addition to the foregoing,
Borrower shall use commercially reasonable efforts to cooperate with Lender, at Lender’s sole cost
and expense, such cost and expense shall be limited to the actual, verifiable and reasonable third
party out-of-pocket costs and expenses of Borrower in all respects in connection with the
resolution of any litigation, mechanics liens, insurance claims or other disputes related to
Borrower’s period of ownership.

(i) Notwithstanding any other provision of this Agreement, (i) nothing in this Agreement shall
be deemed to prevent Borrower or Guarantor from seeking, in good faith, injunctive relief to
contest Lender’s right of any release of the Conveyance Documents or foreclosure or other exercise
by Lender of any remedies solely on the grounds that either (A) an Event of Default has not
occurred or (B) Lender has failed to comply in all material respects with the requirements of the
Loan Documents relating to the exercise of such remedy thereunder, and (ii) the provisions of the
last full paragraph of Section 18.32 of the Original Deed of Trust shall be applicable to any such
contest (a “Contest” as defined in such section).

 

13

 

8. Additional Amendments to Loan Agreement.

(a) Notices. As of the Effective Date, the addresses for the respective parties
contained in Section 11.01 of the Deed of Trust are amended as follows:

If to Lender:

BANK OF AMERICA, NATIONAL ASSOCIATION,

AS TRUSTEE FOR THE BENEFIT OF THE HOLDERS

OF WACHOVIA BANK COMMERCIAL MORTGAGE

TRUST, COMMERCIAL MORTGAGE PASS-THROUGH

CERTIFICATES, SERIES 2007-WHALE 8

540 West Madison Street

Mail Code IL4-540-18-04

Chicago, Illinois 60661

With a copy to:

CWCapital Asset Management LLC

701 13th Street NW, #1000

Washington, DC 20005

Attn: Mr. Kevin Thompson

With a copy to:

Nixon Peabody LLP

437 Madison Avenue

New York, NY 10022

Attn: Arthur J. Rosner, Esq. and

         Andrew Glincher, P.C., Esq.

If to Borrower:

Mondrian Holdings LLC

c/o Morgans Hotel Group

475 Tenth Avenue

New York, New York 10018

Attn: General Counsel

With a copy to:

Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, DC 20004

Attn: Bruce Gilchrist, Esq.

 

14

 

9. Expenses. Except as otherwise expressly provided in this Agreement, each party
shall pay all of its own costs, expenses and fees associated or in any way pertaining to this
Agreement, including, without limitation, the consummation of the transactions contemplated by this
Agreement; provided, however, that Borrower shall pay contemporaneously with the release of the
Conveyance Documents from escrow or the delivery of a deed in the Foreclosure Action (the
“Foreclosure Deed”), as the case may be, the following fees, costs and expenses
(collectively, the “Deed in Lieu Fees and Expenses”): (i) any documentary stamps and any
and
all other transfer taxes required to be affixed to or required to be paid in connection with
the Conveyance Deed or the Foreclosure Deed, as the case may be, together with the costs of
recording the Conveyance Deed or the Foreclosure Deed, as the case may be, and obtaining a
certified copy of the recorded Conveyance Deed or Foreclosure Deed, as the case may be, and (ii)
the cost of updating title and the premium for an ALTA 2006 owner’s title policy to be obtained by
Transferee in connection with recording the Conveyance Deed or the Foreclosure Deed, as the case
may be, which title policy shall (A) be in the amount of the indebtedness evidenced by the Note
which is outstanding on the date of the direction by Lender to Escrowee to release the Conveyance
Documents and record the Conveyance Deed for the Conveyance Deed, or be in the amount of the
judgment in the Foreclosure Action for the Foreclosure Deed (or such lesser amount as Lender shall
accept), (B) omit all general exceptions set forth in such policy (other than matters which would
be deleted by delivery of a current boundary survey to the title company), (C) include such
reinsurance (with such reinsurers) as Transferee may require, together with direct access
agreements with such reinsurers, and (D) be subject only to the exceptions to title accepted by
Lender in connection with the Endorsement, as hereinafter defined in Section 17(a)(ii) below. If
Borrower fails to timely pay the fees, taxes and other expenses described in Section 9(i) and (ii)
above, then Lender and/or Transferee (if other than Lender) may advance such sums to Escrowee, in
which event Borrower shall reimburse Lender and/or Transferee (if other than Lender), as the case
may be, for any and all of such sums so advanced within two (2) Business Days after written demand
for reimbursement by Lender and/or Transferee (if other than Lender). Nothing in this Agreement
shall limit or impair or be deemed to limit or impair Lender’s rights to a deficiency judgment in
the Foreclosure Action, or otherwise, against Borrower or Guarantor in accordance with the Loan
Documents or to otherwise enforce any obligation of any Guarantor. The obligations of Borrower and
Guarantor set forth in this Section 9 shall survive the release of the Conveyance Documents from
escrow and the recording of the Conveyance Deed, shall not be deemed in any way to merge into all
or any of the Conveyance Documents, and shall survive the expiration or other termination of this
Agreement.

10. Representations and Warranties.

(a) Borrower does hereby make the following representations and warranties to Lender as of the
Execution Date in order to induce Lender to enter into this Agreement, it being hereby acknowledged
by Borrower that Lender is relying upon such representations and warranties as a material
inducement to Lender’s execution hereof:

(i) All representations and warranties made by Borrower in the Loan Documents are true and
correct as of the Execution Date (except in the case for representations and warranties which by
their terms are expressly applicable only to an earlier date, in which event such representations
and warranties shall be true and correct on such earlier date);

(ii) Borrower is in full compliance with all covenants, agreements and obligations of Borrower
set forth in the Loan Documents, as modified by the Modification Agreements, Lender is in full
compliance with all covenants, agreements and obligations of Lender set forth in the Loan
Documents, as modified by the Modification Agreements, and no default exists thereunder, and no
event or circumstance exists which with the passage of time or
the giving of notice, or both, would constitute an Event of Default under the Loan Documents
subject to any defaults cured on the date hereof by this Agreement or otherwise;

 

15

 

(iii) Borrower has no set-offs, counterclaims, defenses or other causes of action against
Lender arising out of the Loan, the Loan Documents, any other indebtedness of Borrower to Lender,
or otherwise, and to the extent any such set-offs, counterclaims, defenses or other causes of
action may exist, whether known or unknown, said items are hereby knowingly and voluntarily waived,
now and forever, by Borrower;

(iv) Lender has duly performed all of its obligations under the Loan Documents, and, except as
set forth herein and in the Note Modification Agreement, Lender has no obligation to extend any
financial accommodations to Borrower under the Loan Documents;

(v) Borrower is the sole legal and beneficial owner of the Property, including, but not
limited to, the owner of the Premises and the Improvements in fee simple as more particularly set
forth in that certain First American Title Insurance Company Loan Policy of Title Insurance No.
NCS-251895-SF, in the amount of $120,500,000.00, dated October 6, 2006, issued in connection with
the Loan, under which the Original Lender, its successors and/or assigns as their interests may
appear, is the named insured (the “Title Policy”);

(vi) The Modification Agreements constitute the legal, valid and binding obligations of
Borrower enforceable in accordance with their terms, and the execution and delivery of Modification
Agreements do not contravene, result in a breach of, or constitute a default under any mortgage,
deed of trust, loan agreement, indenture or other contract or agreement to which Borrower is bound,
nor would such execution and delivery constitute a default with the passage of time or the giving
of notice, or both;

(vii) The lien of the Deed of Trust is valid and subsisting and shall remain an enforceable
and valid first lien against the Property until the Debt is paid in full;

(viii) Borrower has thoroughly read and reviewed the terms and provisions of the Modification
Agreements and is familiar with same, and Borrower has entered into the Modification Agreements
voluntarily, without duress or undue influence of any kind, and with the advice and representation
of legal counsel selected by Borrower;

(ix) The financial statements of Borrower and Guarantor heretofore delivered to Lender are
complete and accurate in all material respects, all financial data and reports of Borrower and
Guarantor, and all financial data and reports with respect to the Property, presented to Lender are
based on the actual books and records of Borrower and Guarantor and have been prepared in
conformance with Borrower’s normal and customary accounting procedures, and any such financial
statements that are audited have been prepared in accordance with generally accepted accounting
principles consistently applied;

(x) Neither Borrower nor Guarantor is insolvent or bankrupt. The consummation of the
transactions contemplated by the Modification Agreements will not render Borrower or Guarantor
insolvent or constitute a fraudulent conveyance or fraudulent transfer under any applicable law.
Neither Borrower nor Guarantor has made any general assignment for the benefit of its creditors.
No proceeding seeking (i) relief for Borrower or Guarantor under any
bankruptcy or insolvency law, (ii) the rearrangement or readjustment of debt of Borrower or
Guarantor, (iii) the appointment of a receiver, custodian, liquidator or trustee to take possession
of substantially all of the assets of Borrower or Guarantor, or (iv) the liquidation of Borrower or
any of its members, has been commenced or is threatened;

 

16

 

(xi) All federal, state and other tax returns of Borrower and Guarantor required by law to be
filed by them have been filed, and all federal, state and other taxes, assessments, fees and other
governmental charges imposed upon Borrower and Guarantor or upon any of their properties or assets,
which are due and payable, have been paid;

(xii) There are no judgments, orders, suits, actions, garnishments, attachments or proceedings
by or before any court, commission, board or other governmental body pending, or to the knowledge
of Borrower or Guarantor threatened, which (A) involve or affect, or will involve or affect, the
Property or the validity or enforceability of the Modification Agreements, or the Loan Documents,
or (B) involve any risk of any lien, judgment or liability being imposed upon Borrower or the
Property that could materially adversely affect the financial condition of Borrower or Guarantor or
the ability of Borrower or Guarantor to observe or perform fully their respective agreements and
obligations under the Modification Agreements or under the Loan Documents; and

(xiii) This Agreement and the Note Modification Agreement are included in the defined term
“Loan Documents”.

11. Release of Claims.

(a) BORROWER, ON BEHALF OF ITSELF AND ITS SUCCESSORS AND ASSIGNS (THE “BORROWER RELEASE
PARTIES”), HEREBY FULLY, FINALLY AND COMPLETELY RELEASE AND FOREVER DISCHARGE LENDER, LENDER’S
SERVICERS, AND THEIR RESPECTIVE AFFILIATES, SUBSIDIARIES, PARENTS, OFFICERS, SHAREHOLDERS,
DIRECTORS, EMPLOYEES, ATTORNEYS, AGENTS AND PROPERTIES, PAST, PRESENT AND FUTURE, AND THEIR
RESPECTIVE HEIRS, PERSONAL REPRESENTATIVES, DISTRIBUTEES, SUCCESSORS AND ASSIGNS (COLLECTIVELY AND
INDIVIDUALLY, THE “LENDER RELEASE PARTIES”), OF AND FROM ANY AND ALL CLAIMS, CONTROVERSIES,
DISPUTES, LIABILITIES, OBLIGATIONS, DEMANDS, DAMAGES, DEBTS, LIENS, ACTIONS AND CAUSES OF ACTION OF
ANY AND EVERY NATURE WHATSOEVER, KNOWN OR UNKNOWN, WHETHER AT LAW, BY STATUTE OR IN EQUITY, IN
CONTRACT OR IN TORT, UNDER STATE OR FEDERAL JURISDICTION, AND WHETHER OR NOT THE ECONOMIC EFFECTS
OF SUCH ALLEGED MATTERS ARISE OR ARE DISCOVERED IN THE FUTURE, WHICH THE BORROWER RELEASE PARTIES
HAVE AS OF THE EXECUTION DATE OR MAY CLAIM TO HAVE AGAINST THE LENDER RELEASE PARTIES ARISING OUT
OF OR WITH RESPECT TO ANY AND ALL TRANSACTIONS RELATING TO THE LOAN OR THE LOAN DOCUMENTS OCCURRING
ON OR BEFORE THE EXECUTION DATE, INCLUDING ANY LOSS, COST OR DAMAGE OF ANY KIND OR CHARACTER
ARISING OUT OF OR IN ANY WAY CONNECTED WITH OR IN ANY WAY RESULTING FROM THE ACTS, ACTIONS OR
OMISSIONS OF THE LENDER RELEASE PARTIES OCCURRING ON OR BEFORE THE
EXECUTION DATE. THE FOREGOING RELEASE

 

17

 

 IS INTENDED TO BE, AND IS, A FULL, COMPLETE AND GENERAL RELEASE IN FAVOR OF
THE LENDER RELEASE PARTIES WITH RESPECT TO ALL CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION AND OTHER
MATTERS DESCRIBED THEREIN, INCLUDING SPECIFICALLY, WITHOUT LIMITATION, ANY CLAIMS, DEMANDS OR
CAUSES OF ACTION BASED UPON ALLEGATIONS OF BREACH OF FIDUCIARY DUTY, BREACH OF ANY ALLEGED DUTY OF
FAIR DEALING IN GOOD FAITH, ECONOMIC COERCION, USURY, OR ANY OTHER THEORY, CAUSE OF ACTION,
OCCURRENCE, MATTER OR THING WHICH MIGHT RESULT IN LIABILITY UPON THE LENDER RELEASE PARTIES ARISING
OR OCCURRING ON OR BEFORE THE EXECUTION DATE. THE BORROWER RELEASE PARTIES UNDERSTAND AND AGREE
THAT THE FOREGOING GENERAL RELEASE IS IN CONSIDERATION FOR THE AGREEMENTS OF LENDER CONTAINED IN
THE MODIFICATION AGREEMENTS AND THAT THEY WILL RECEIVE NO FURTHER CONSIDERATION FOR SUCH RELEASE.
IN ADDITION, BORROWER AGREES NOT TO COMMENCE, JOIN IN, PROSECUTE OR PARTICIPATE IN ANY SUIT OR
OTHER PROCEEDING IN A POSITION WHICH IS ADVERSE TO ANY OF THE LENDER RELEASE PARTIES ARISING
DIRECTLY OR INDIRECTLY FROM ANY OF THE FOREGOING MATTERS. NOTWITHSTANDING ANYTHING CONTAINED IN
THIS AGREEMENT TO THE CONTRARY, IN THE EVENT THAT ANY OF THE CONVEYANCE DOCUMENTS ARE EVER RENDERED
VOID OR RESCINDED BY OPERATION OF LAW OR OTHERWISE, AND ANY SETTLEMENT EFFECTED UNDER THIS
AGREEMENT IS DEEMED VOID OR IS NO LONGER IN FORCE OR EFFECT, THE RELEASE HEREIN CREATED SHALL NOT
BE RESCINDED BUT SHALL REMAIN IN FULL FORCE AND EFFECT AND UNAFFECTED THEREBY. NOTHING HEREIN
SHALL TRANSFER TO TRANSFEREE, NOR SHALL TRANSFEREE ACCEPT OR ASSUME, ANY SUCCESSOR DEVELOPER
OBLIGATION, LIABILITY OR STATUS.

(b) BORROWER WARRANTS AND REPRESENTS TO LENDER THAT BORROWER HAS NOT SOLD, ASSIGNED,
TRANSFERRED, CONVEYED OR OTHERWISE DISPOSED OF ANY CLAIMS WHICH ARE THE SUBJECT OF THIS SECTION.
THE INCLUSION OF THIS PROVISION SHALL NOT BE DEEMED TO BE AN ADMISSION BY LENDER THAT ANY SUCH
CLAIMS EXIST.

12. Indemnification. Borrower shall, at Borrower’s own expense, and does hereby agree
to, protect, indemnify, reimburse, defend and hold harmless Lender and Transferee (if other than
Lender) and their respective directors, officers, agents, employees, attorneys, successors and
assigns from and against any and all liabilities (including strict liability), losses, suits,
proceedings, settlements, judgments, orders, penalties, fines, liens, assessments, claims, demands,
damages, injuries, obligations, costs, disbursements, expenses or fees, of any kind or nature
(including attorneys’ fees and expenses paid or incurred in connection therewith) arising out of or
by reason of the following: an incorrect legal description of the Property; any failure or breach
of any of Borrower’s or Guarantor’s representations, warranties and covenants contained in this
Agreement, the Conveyance Documents and all documents executed or delivered in connection
therewith; claims for brokerage commissions or leasing commissions asserted by any party claiming
by, through or under Borrower, Guarantor or Affiliates of any of them; claims asserted against the
Property or against Lender or the Transferee (if other than Lender) in connection with the Property
which arose prior to the date hereof including, without

 

18

 

limitation,
any management fees or fees for other services provided in connection with the Property; any
acts or omissions of Borrower or Guarantor or any other Person (during the time the Property was
owned by Borrower) at, on or about the Property regarding the contamination of air, soil, surface
waters or ground waters over, on or under Property; the presence, whether past or present, of any
Hazardous Materials (as such term is defined in the Deed of Trust) on, in or under the Property;
any past, present or future events, conditions, circumstances, activities, practices, incidents,
actions or plans involving the manufacture, processing, distribution, use, transport, handling,
treatment, storage, disposal, cleanup, emission, discharge, seepage, spillage, leakage, release or
threatened release of any Hazardous Material on, in, under or from the Property, in connection with
Borrower’s operations on the Property, or otherwise; all of the foregoing regardless of whether
within the control of Lender or the Transferee (if other than Lender), so long as any act, omission
or occurrence that took place prior to the delivery of the Conveyance Documents and the complete
dispossession of Borrower from the Property (the “Final Transfer Date”). Anything herein
to the contrary notwithstanding, no liability shall arise from any act, omission or occurrence
concerning Hazardous Material that occurs from and after the Final Transfer Date. This
indemnification shall survive the execution and delivery of this Agreement and the Conveyance
Documents and the expiration or other termination of this Agreement.

13. Default. Any default by Borrower in the performance of its obligations herein
contained or contained in the Note Modification Agreement shall constitute an Event of Default
under Section 13.01(o) of the Deed of Trust, and subject to the provisions thereof, shall entitle
Lender to exercise all of its rights and remedies set forth in the Loan Documents. An Event of
Default shall exist if any representation or warranty made by Borrower or Guarantor in this
Agreement or in any other Loan Document, or in any report, certificate, financial statement or
other instrument, agreement or document furnished to Lender shall not have been true, accurate and
complete as of the date the representation or warranty was made and has a Material Adverse Effect;
provided, however, if the failure of any such representation or warranty to be true, accurate and
complete is susceptible to cure, then Borrower shall have thirty (30) days after notice from Lender
to cure the failure of such representation or warranty to be true, accurate and complete. The
failure of Borrower to so cure the failure of such representation or warranty to be true, accurate
and complete within said thirty (30) day period shall constitute an Uncured Event of Default.

14. Ratification and Confirmation.

(a) Borrower and Lender hereby expressly ratify and confirm (i) each of the Loan Documents,
and (ii) all rights, assignments, liens, pledges, security interests, and obligations thereunder,
including, without limitation, the assignments, liens, pledges and security interests of the Loan
Documents. Notwithstanding the foregoing or any other provision hereof to the contrary, nothing in
this Agreement is intended to be, and shall not be deemed or construed to be, a novation of the
Note or the Loan Documents.

(b) This Agreement constitutes a Loan Document. The provisions of Section 18.32 of the Deed of
Trust are incorporated by reference herein with the same effect as if they were set forth herein in
their entirety but shall not be applicable to the obligations of Guarantor hereunder except to the
extent set forth in Section 7(i) above.

 

19

 

(c) Borrower expressly acknowledges and agrees that the Loan remains outstanding and that
Borrower continues to be fully bound by all of the terms and conditions of the Loan Documents as
set forth herein and therein. Except as otherwise expressly set forth herein, nothing contained in
this Agreement shall be deemed to be or effect (a) any waiver or release of any of the terms and
conditions of the Note or any of the other Loan Documents or of any existing or future defaults or
events of default thereunder, (b) an extension of time for the payment or performance of any
obligation to be performed on the part of Borrower or any other obligor thereunder, or (c) any
waiver or release of Lender’s rights to exercise any and all remedies with respect thereto, or the
effectiveness of any notices of intention to accelerate, notices of acceleration, or acceleration
given subsequent to the execution of the Modification Agreements.

15. Further Assurances. Borrower agrees to execute any instruments which, in the
opinion of Lender, are necessary or desirable to perfect such deeds of trust, liens, security
interests, assignments and encumbrances.

16. Lift of Bankruptcy Stay. In the event of the filing of any voluntary or
involuntary petition under the Bankruptcy Code (11 U.S.C. § 101, et seq.) by or against Borrower,
in consideration for Lender’s agreements hereunder, neither Borrower nor any of its Affiliates,
including, without limitation, Guarantor shall assert, or request any other party to assert, that
the automatic stay under 11 U.S.C. § 362 shall operate or be interpreted to stay, interdict,
condition, reduce, prohibit, inhibit, or interfere with the ability of Lender to enforce any rights
it has by virtue of this Agreement, or any other rights that Lender has, whether now or hereafter
acquired, against Borrower or the Property. Further, in consideration for Lender’s agreements
hereunder, neither Borrower nor any of its Affiliates, including, without limitation, Guarantor
shall seek a supplemental stay or any other relief, whether injunctive or otherwise, pursuant to 11
U.S.C. § 105 or any other provision of the Bankruptcy Code to stay, interdict, condition, reduce,
prohibit, inhibit, or interfere with the ability of Lender to enforce any rights it has by virtue
of this Agreement or otherwise against Borrower or the Property. The waivers contained in this
paragraph are knowingly and voluntarily made by Borrower, now and forever, and are a material
inducement to Lender’s willingness to enter into this Agreement and Borrower and Guarantor
acknowledge and agree that no ground exists for equitable relief which would bar, delay or impede
the exercise by Lender of Lender’s rights and remedies against Borrower or the Property. In the
event any property, any portion thereof or any interest therein (including, without limitation, the
Property) of Borrower becomes property of any bankruptcy estate or subject to any state or federal
insolvency proceeding, then, in consideration for Lender’s agreements hereunder, Lender shall
immediately become entitled, in addition to all other relief to which Lender may be entitled,
including, without limitation, under this Agreement or the Loan Documents, to obtain an order from
the Bankruptcy Court or other court of competent jurisdiction granting immediate relief from the
automatic stay pursuant to 11 U.S.C. § 362 permitting Lender to pursue its rights and remedies
against Borrower or the Property as provided under this Agreement, the Loan Documents, and all
other rights and remedies of Lender at law, in equity, or otherwise. In connection with such an
order, in consideration for Lender’s agreements hereunder, neither Borrower nor any of its
Affiliates, including, without limitation, Guarantor, shall contend or allege, in any pleading,
petition filed in any court proceeding, or otherwise, that Lender does not have sufficient grounds
for relief from the automatic stay. Any bankruptcy petition or other action taken by Borrower or
any of its Affiliates, including, without
limitation, Guarantor (or any person claiming through such Person) to stay, condition, or
inhibit Lender from exercising its remedies are hereby admitted by Borrower to be in bad faith, and
Borrower further admits that Lender would have just cause for relief from the automatic stay in
order to take such actions authorized under law, equity, or otherwise.

 

20

 

17. Conditions Precedent.

(a) In addition to those conditions described elsewhere in this Agreement, the following shall
be conditions precedent to the effectiveness of this Agreement:

(i) Prior to or simultaneously with the execution of this Agreement, Borrower shall have
executed, or caused to be executed, and delivered to Lender all documents required by Lender in
connection with the modification of the Loan contemplated hereby, including without limitation, the
Note Modification Agreement.

(ii) Prior to or simultaneously with the execution hereof, Borrower shall furnish, or cause to
be furnished, to Lender, at the Borrower’s expense, a date down endorsement (the
“Endorsement”) to the Title Policy, which Endorsement must show that the Title Policy is
still in effect as to the Property and the lien of the Deed of Trust is unimpaired, notwithstanding
this Agreement or the Note Modification Agreement and showing only such exceptions accepted by
Original Lender and otherwise be satisfactory to Lender, and Lender’s counsel.

(iii) Prior to or simultaneously with the execution of this Agreement, Lender shall have
received from legal counsel retained by Borrower and acceptable to Lender an opinion of counsel
(the “Legal Opinion”) covering the following matters: (A) the due authorization of the
Modification Agreements, the Escrow Agreement, the Conveyance Documents and any other documents
executed in connection herewith in accordance with their respective terms (collectively, the
“Modification Transaction Agreements”); (B) the validity and enforceability of the
Modification Transaction Agreements (subject to such qualifications as shall be acceptable to
Lender); (C) compliance with applicable usury laws of the State of California; (D) the due
organization and valid legal existence of Borrower, any entity owning at least a 20% equity
interest in the Borrower and the Guarantor; (E) the execution and delivery of the Modification
Transaction Agreements will not impair the security for the Loan (including, but not limited to,
the continued validity and enforceability of any guaranty given as security for the Loan); and (F)
such other matters incident to the transaction contemplated herein as Lender may reasonably
request.

(b) If for any reason any of the foregoing conditions precedent (or any other condition
precedent set forth in this Agreement) fails to occur within the time period specified, all
provisions of this Agreement, except for the release of the Lender Release Parties by the Borrower
Release Parties contained in Section 11 of this Agreement, shall terminate and be of no further
force or effect and the Loan shall remain payable as if this Agreement had never been executed.
The foregoing conditions precedent are for the sole benefit of Lender and may be waived only by
Lender by written agreement executed by Lender.

 

21

 

18. Usury Savings Clause. Section 18.16 of the Deed of Trust is hereby incorporated
by reference in its entirety as if fully restated herein.

19. OFAC. In consideration of Lender’s agreements set forth herein, Borrower
represents and warrants to Lender that neither Borrower nor to Borrower’s knowledge, any person
owning an interest in Borrower (except that knowledge shall not require any investigation into
ownership of publicly traded stock or other publicly traded securities), is a country, territory,
individual or entity named on a list maintained by the U.S. Treasury Department’s Office of Foreign
Assets Control (“OFAC”), or is a Specially Designated National or Blocked Person under the
programs administered by OFAC. If the foregoing representation and warranty shall at any time be
or become untrue or incorrect during the term of the Loan, an Event of Default shall be deemed to
have occurred.

20. No Waiver. Except as expressly provided herein, the execution of this Agreement
by Lender does not and shall not constitute a waiver of any rights or remedies to which Lender is
entitled pursuant to the Loan Documents, nor shall the same constitute a waiver of any Event of
Default which may have heretofore occurred or which may hereafter occur with respect to the Loan
Documents. Lender reserves the right to declare any existing default or Event of Default which
subsequently comes to the attention of Lender whether pertaining to a period prior to the Effective
Date or on or after the Effective Date.

21. Counterparts. This Agreement may be executed in any number of counterparts with
the same effect as if all parties hereto had signed the same document. All such counterparts shall
be construed together and shall constitute one instrument, but in making proof hereof it shall only
be necessary to produce one such counterpart.

22. Governing Law.

(A) This Agreement and the obligations arising hereunder shall be governed by, and construed
in accordance with, the laws of the State of California applicable to contracts made and performed
in such state (without regard to principles of conflict of laws) and any applicable law of the
United States of America.

(B) Any legal suit, action or proceeding against Lender or Borrower arising out of or relating
to this Agreement may at Lender’s option be instituted in any Federal or State Court in the City of
Los Angeles, County of Los Angeles, and Borrower knowingly and voluntarily waives, now and forever,
any objections which it may now or hereafter have based on venue and/or forum non conveniens of any
such suit, action or proceeding, and Borrower hereby irrevocably submits to the jurisdiction of any
such court in any suit, action or proceeding. Borrower does hereby designate and appoint CT
Corporation System, as its authorized agent to accept and acknowledge on its behalf service of any
and all process which may be served in any such suit, action or proceeding in any Federal or State
Court in Los Angeles, California, and agrees that service of process upon said agent at said
address and written notice of said service mailed or delivered to Borrower in the manner provided
herein shall be deemed in every respect effective service of process upon Borrower, in any such
suit, action or proceeding in the State of California. Borrower (i) shall give prompt notice to
Lender of any changed address of its authorized agent hereunder, (ii) may at any time and from time
to time designate a substitute
authorized agent with an office in Los Angeles, California (which substitute agent and office
shall be designated as the person and address for service of process), and (iii) shall promptly
designate such a substitute if its authorized agent ceases to have an office in Los Angeles,
California, or is dissolved without leaving a successor.

 

22

 

23. Interpretation. Within this Agreement, words of any gender shall be held and
construed to include any other gender, and words in the singular number shall be held and construed
to include the plural, unless the context otherwise requires. The section headings used herein are
intended for reference purposes only and shall not be considered in the interpretation of the terms
and conditions hereof. The parties acknowledge that the parties and their counsel have reviewed
and revised this Agreement and that the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or any exhibits or amendments hereto.

24. Amendment. The terms and conditions hereof may not be modified, altered or
otherwise amended except by an instrument in writing executed by all of the Loan Parties.

25. Entire Agreement. This Agreement and the instruments, documents and Agreements
referenced in this Agreement contain the entire Agreement between the parties hereto with respect
to the modification of the Loan and fully supersede all prior agreements and understanding between
the parties pertaining to such subject matter.

26. Successors and Assigns. The terms and conditions of this Agreement shall be
binding upon and shall inure to the benefit of the parties hereto, their successors and permitted
assigns.

27. Cumulative Rights. The rights of Lender under this Agreement and the other Loan
Documents shall be separate, distinct and cumulative and none shall be given effect to the
exclusion of the others. No act of Lender shall be construed as an election to proceed under any
one provision herein or under any of the other Loan Document to the exclusion of any other
provision herein or in any other Loan Document. Lender shall not be limited to the rights and
remedies herein stated but shall be entitled to any and all rights and remedies afforded Lender
herein, in the other Loan Documents and as otherwise now or hereafter afforded by law.

28. Surviving Obligations. Any and all of the obligations imposed upon Borrower and
Guarantor in this Agreement that are to occur after the Conveyance Date shall survive (a) the
release of the Conveyance Documents from Escrow, and (b) the delivery (if delivered) of that
certain Partial Release by Lender to Borrower, Mondrian Pledgor LLC, a Delaware limited liability
company, and 8440 LLC, a Delaware limited liability company, having an execution date the same as
the Execution Date of this Agreement (the “Partial Release”), as more particularly
described in and attached to the Escrow Agreement, and shall not be deemed in any way to merge into
the Conveyance Deed or the Partial Release and shall survive the expiration or other termination of
this Agreement. Any and all of the obligations imposed upon Borrower in this Agreement that are to
occur after the entry of the Foreclosure Order shall survive the entry of the Foreclosure Order,
shall not be deemed in any way to merge into the Foreclosure Order and shall survive the expiration
or other termination of this Agreement.

 

23

 

29. Final Agreement. This Agreement represents the final agreement among the parties
and may not be contradicted by the parties. There are no unwritten oral agreements among the
parties.

30. WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT AGREES THAT ANY SUIT, ACTION,
OR PROCEEDING BROUGHT OR INSTITUTED BY ANY PARTY HERETO OR ANY SUCCESSOR OR ASSIGN OF ANY PARTY ON
OR WITH RESPECT TO THIS AGREEMENT, ANY OF THE OTHER DOCUMENTS EXECUTED IN CONNECTION WITH THIS
AGREEMENT, ANY OF THE LOAN DOCUMENTS OR WHICH IN ANY WAY RELATES DIRECTLY OR INDIRECTLY TO THE
OBLIGATIONS UNDER THIS AGREEMENT, THE OTHER DOCUMENTS EXECUTED IN CONNECTION WITH THIS AGREEMENT OR
ANY OF THE LOAN DOCUMENTS OR ANY EVENT, TRANSACTION OR OCCURRENCE ARISING OUT OF OR IN ANY WAY
CONNECTED THEREWITH, OR THE DEALINGS OF THE PARTIES WITH RESPECT THERETO, SHALL BE TRIED ONLY BY A
COURT AND NOT A JURY. EACH PARTY HEREBY EXPRESSLY KNOWINGLY AND VOLUNTARILY WAIVES, NOW AND
FOREVER, ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH SUIT, ACTION, OR PROCEEDING. THE BORROWER PARTIES
ACKNOWLEDGE AND AGREE THAT THIS PROVISION IS A SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT
BETWEEN THE PARTIES HERETO AND THAT LENDER WOULD NOT AGREE TO THE AGREEMENTS SET FORTH HEREIN IF
THIS WAIVER OF JURY TRIAL PROVISION WERE NOT A PART OF THIS AGREEMENT.

31. Relationship of Parties. Nothing contained in this Agreement or the other Loan
Documents constitutes or shall be construed as the formation of a partnership, joint venture,
tenancy-in-common, or any other form of co-ownership, between Lender and the Borrower Parties or
any other person or entity or the creation of any confidential or fiduciary relationship of any
kind between the Lender and the Borrower Parties or any other person or entity. The Borrower
Parties acknowledge and agree that (a) Lender has at all times acted and shall at all times
continue to be acting only as a lender to Borrower within the normal and usual scope of activities
of a lender, and (b) Trustee has at all times acted and shall at all times continue to be acting
only as a trustee to Lender within the normal and usual scope of activities of a trustee.

32. Severability. If any clause or provision of this Agreement is determined to be
illegal, invalid or unenforceable under any present or future law by the final judgment of a court
of competent jurisdiction, the remainder of this Agreement will not be affected thereby. It is the
intention of the parties that if any such provision is held to be illegal, invalid or
unenforceable, there will be added in lieu thereof a provision as similar in terms to such
provision as is possible and be legal, valid and enforceable.

33. Recitals. The “Recitals” set forth at the beginning of this Agreement are hereby
acknowledged to be true and correct by the parties and are incorporated into this Agreement.

 

24

 

34. Conflicts. Except as expressly modified pursuant to this Agreement, all of the
terms, covenants and provisions of the Loan Documents shall continue in full force and effect. In
the event of any conflicts or ambiguity between the terms, covenants and provisions of this
Agreement and those of the other Loan Documents, the terms, covenants and provisions of this
Agreement shall prevail.

35. Further Amendment. Except as modified by this Agreement, the Deed of Trust and
each of the covenants, terms and conditions set forth therein are and shall remain in full force
and effect and are hereby ratified, confirmed and approved. It is expressly understood and agreed
that the Deed of Trust is only amended as set forth herein and any further amendment of the Deed of
Trust, if the parties hereafter shall agree to same, shall be by written agreement between the
parties hereto and any such agreement shall not be binding upon Lender unless same is fully
executed and unconditionally delivered by Lender and Borrower.

36. Time is of the Essence. Time is of the essence with respect to the payment,
performance and observance of each and every covenant, agreement, condition and obligation of
Borrower under this Agreement and the other Loan Documents, subject to applicable notice and cure
periods.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

25

 

IN WITNESS WHEREOF, the Lender and Borrower hereto have executed and delivered this Agreement
to be effective as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONDRIAN HOLDINGS LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Mondrian Senior Mezz LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a
Delaware corporation, its managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ Richard Szymanski
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	Name:  Richard Szymanski	 	 
	 	 	 	 	 	 	 	 	 	 	Title:    Chief Financial Officer	 	 

 

26

 

LENDER:

BANK OF AMERICA, NATIONAL ASSOCIATION, AS SUCCESSOR BY MERGER TO LASALLE BANK
NATIONAL ASSOCIATION, AS TRUSTEE FOR THE BENEFIT OF THE HOLDERS OF WACHOVIA BANK
COMMERCIAL MORTGAGE TRUST, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2007-WHALE 8

By and through CWCapital Asset Management LLC, solely in its capacity as
Special Servicer for the Holder

	 	 	 	 	 
	 	By:  	                              /s/ Kevin Thompson
 	 
	 	 	Name:  	Kevin Thompson 	 
	 	 	Title:  	Vice President 	 

 

 

 

The undersigned Guarantors and SPE Pledgors hereby (i) consent to the terms of the
Modification Agreements and (ii) join in this Agreement for the sole purposes of agreeing to the
obligations imposed on the undersigned Guarantors and SPE Pledgors in this Agreement, for which
obligations Guarantor and SPE Pledgors shall be bound as if Guarantor and SPE Pledgors are a party
to this Agreement.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONDRIAN PLEDGOR LLC, a Delaware limited liability company, Guarantor and SPE Pledgor
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Mondrian Senior Mezz LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Hotel Group
Co., a Delaware corporation, its managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	 /s/ Richard Szymanski	 
	 	 	 	 	 	 	 	 	 	 	Name: Richard Szymanski	 	 
	 	 	 	 	 	 	 	 	 	 	Title:   Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	8440 LLC, a Delaware limited liability company, Guarantor and SPE Pledgor
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Mondrian Pledgor LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Mondrian Senior Mezz LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:
Morgans Hotel Group Co., a Delaware corporation, its managing
member

	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ Richard Szymanski	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Name: Richard Szymanski	 	 
	 	 	 	 	 	 	 	 	 	 	Title:   Chief Financial Officer	 	 

 

 

 

The undersigned Guarantor hereby (i) consents to the terms of the Modification Agreements and (ii)
joins in this Agreement for the sole purposes of agreeing to the obligations imposed on the
undersigned Guarantor in this Agreement, for which obligations Guarantor shall be bound as if
Guarantor is a party to this Agreement.

By: MORGANS GROUP LLC, a Delaware limited liability company

By: Morgans Hotel Group Co., a Delaware corporation, its managing member

	 	 	 	 	 
	 	By:  	                                 /s/ Richard Szymanski
 	 
	 	 	Name:  	Richard Szymanski 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

 

 

 

EXHIBIT A

LEGAL DESCRIPTION OF PROPERTY

Lot “A” of Tract 2527, in the city of West Hollywood, county of Los Angeles, state of California,
as per map recorded in Book 34 Page 14 of Maps, in the office of the county recorder of said
county.

EXCEPT therefrom that portion thereof lying Southerly of a line bearing North 89 degrees 54’ West
from a point on the East line of said Lot, distant North 0 degrees 06’ East thereon 320 feet from
the Southeast corner of said Lot.

 

 

 

EXHIBIT B

DEED OF TRUST

(incorporated
by reference to Exhibit 10.9 to the Company’s Quarterly Report
on Form 10-Q filed on November 9, 2010)

 

 

 

EXHIBIT C

ESCROW AGREEMENT

 

 

 

ESCROW AGREEMENT

THIS ESCROW AGREEMENT (the “Agreement”) is made and entered into as of the
30th day of September, 2010 (the “Effective Date”), by and among
CHICAGO TITLE COMPANY, a California corporation (the “Escrow Agent”), MONDRIAN HOLDINGS
LLC, a Delaware limited liability company (“Borrower”), and BANK OF AMERICA, NATIONAL
ASSOCIATION, AS SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE
BENEFIT OF THE HOLDERS OF WACHOVIA BANK COMMERCIAL MORTGAGE TRUST, COMMERCIAL MORTGAGE PASS-THROUGH
CERTIFICATES, SERIES 2007-WHALE 8 (“Lender”).

RECITALS:

WHEREAS, Lender is the holder of (i) that certain Promissory Note A-1 in the amount of
$60,250,000.00, dated as October 6, 2006, by Borrower in favor of Lender’s predecessor in interest,
Wachovia Bank, National Association (“Original Lender”), as modified by the A-1 Note
Modification Agreement dated as of the Effective Date (the “A-1 Note Modification
Agreement”) between Borrower and Lender (as modified, “Note A-1”) and (ii) that certain
Promissory Note A-2 dated as of October 6, 2006, between Borrower and Original Lender in the amount
of $60,250,000.00, as modified by the A-2 Note Modification Agreement dated as of the Effective
Date (the “A-2 Note Modification Agreement”) between Borrower and Lender (as modified,
“Note A-2”, together with Note A-1 hereinafter collectively, the “Note”); and

WHEREAS, the Note is secured by that certain Deed of Trust, Security Agreement, Assignment of
Rents and Fixture Filing dated as of October 6, 2006, by Borrower in favor of First American Title
Insurance Company, as Trustee for the benefit of the Original Lender (the “Trustee”),
recorded in the Office of the County Recorder of the County of Los Angeles, State of California
(the “Official Records”) on October 25, 2006, as Instrument No. 06-2368097 (the
“Original Deed of Trust”), which Original Deed of Trust was agreed to and consented to by
SPE Pledgors; and

WHEREAS, the Note was assigned by Original Lender to LaSalle Bank National Association, as
Trustee for the Benefit of the Holders of Wachovia Bank Commercial Mortgage Trust, Commercial
Mortgage Pass-Through Certificates, Series 2007-WHALE 8 (“LaSalle”), and the beneficial
interest in the Deed of Trust was assigned by Original Lender to LaSalle, as more particularly set
forth in that certain Assignment recorded on December 31, 2007, in the Official Records as
Instrument No. 20072857366; and

WHEREAS, by virtue of a merger, effective on October 17, 2008, Lasalle merged into Bank of
America, National Association; and

WHEREAS, Lender has agreed to enter into (a) the A-1 Note Modification Agreement, (b) the A-2
Note Modification Agreement, and (c) that certain Restatement and Modification of Deed of Trust,
Security Agreement, Assignment of Rents and Fixture Filing by and between Borrower and Lender dated
as of the Effective Date amending the Original Deed of Trust (the “Deed of Trust Modification
Agreement,” and together with the Original Deed of Trust, the “Deed of Trust”), to be recorded in the Official Records, which A-1 Note Modification
Agreement, A-2 Note Modification Agreement and Deed of Trust Modification Agreement have been
agreed to and consented to by the Guarantors; and

 

 - 1 - 

 

WHEREAS, in accordance with the terms of the Deed of Trust Modification Agreement, Borrower
has agreed to place the Conveyance Documents (as hereinafter defined) in escrow with Escrow Agent;
and

WHEREAS, the parties hereto have agreed to enter into this Agreement pursuant to which the
Conveyance Documents shall be held and released by Escrow Agent.

NOW, THEREFORE, for Ten and No/100 Dollars ($10.00) and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

1. Recitals. The recitals set forth above are true and correct and are incorporated
herein.

2. Definitions. All capitalized terms used herein and not otherwise defined herein shall
have the meaning ascribed to such term in the Deed of Trust.

3. Conveyance Documents. Attached hereto are the following documents (collectively, the
“Conveyance Documents”) fully executed and notarized, where necessary, by Borrower and
Guarantor, as the case may be, which Conveyance Documents are to be held and released by Escrow
Agent in accordance with the terms of this Agreement:

	 	(a)	 	Grant Deed by Borrower attached hereto and made a part hereof as
Exhibit A (the “Grant Deed”);

	 
	 	(b)	 	Bill of Sale by Borrower attached hereto and made a part hereof as
Exhibit B (the “Bill of Sale”);

	 
	 	(c)	 	Assignment Agreement by Borrower attached hereto and made a part hereof as
Exhibit C (the “Assignment Agreement”);

	 
	 	(d)	 	Release Agreement by Borrower and Guarantor in favor of Lender attached hereto and
made a part hereof as Exhibit D (the “Release by Borrower
Parties”);

	 
	 	(e)	 	Estoppel Affidavit by Borrower attached hereto and made a part hereof as
Exhibit E (the “Estoppel”); and

	 
	 	(f)	 	Certification of Non-Foreign Status by Borrower attached hereto and made a part
hereof as Exhibit F (the “Certification”).

 

 - 2 - 

 

4. Completion of Conveyance Documents; Payment of Deed in Lieu Expenses and Fees; Replacement
Conveyance Documents.

	 	(a)	 	In accordance with the terms of Section 6(a)(ii) of the Deed of
Trust Modification Agreement, if an Uncured Event of Default occurs, and Lender
elects to cause the Conveyance Documents to be released from escrow by
providing written notice of such election to Escrow Agent (the “Release
Notice”), Lender may elect to take title to the Property in its own name or
in that of a Lender designee (for the purposes of this Agreement, the party
that Lender elects to take title to the Property shall be the
“Transferee”). The Release Notice shall provide Escrow Agent with the
name of the Transferee. All of the parties hereto authorize Escrow Agent to,
prior to releasing such Conveyance Documents from escrow, (i) insert the amount
of the outstanding indebtedness on the face of the Grant Deed in an amount to
be provided to Escrow Agent by Lender, (ii) insert the name of the Transferee,
its entity type and state of formation in the Grant Deed, the Bill of Sale, the
Assignment Agreement, the Estoppel and the Certification, and (iii) date all of
the Conveyance Documents as of the date of the Release Notice.

	 
	 	(b)	 	Simultaneously with the delivery of the Release Notice to Escrow Agent, Lender shall
provide a copy of such Release Notice to Borrower and shall instruct Borrower
to immediately, but in no event later than three (3) Business Days after
Borrower’s receipt of the Release Notice, deliver to Escrow Agent any and all
title affidavits and other title clearing documents as Escrow Agent, in its
capacity as a title agent, may reasonably require to issue the title policy in
accordance with the requirements set forth in this Section 4(b) below
(collectively, the “Title Affidavits”), and make payment to Escrow
Agent of the following costs and expenses (collectively, the “Deed in Lieu
Expenses and Fees”): (i) any documentary stamps and any and all other
transfer taxes required to be affixed to or required to be paid in connection
with the Grant Deed, together with the costs of recording the Grant Deed,
obtaining a certified copy of the recorded Grant Deed and delivering such
certified copy of the Grant Deed to Transferee; and (ii) the cost of updating
title and the premium for an ALTA 2006 owner’s title policy to be obtained by
Transferee in connection with recording the Grant Deed, which title policy
Escrow Agent agrees to issue pursuant to and in accordance with the terms of
the Chicago Title Company Commitment of Title Insurance issued under Order
Number 106746729-X59, and which title policy shall be issued by Escrow Agent to
Transferee at the time of the recording of the Grant Deed and shall, unless
waived in whole or in part by Transferee, (A) be in the amount of the
indebtedness evidenced by the Note which is outstanding on the date of the
Release Notice (or such lesser amount as Lender shall accept), (B) omit all
general exceptions set forth in such policy (other than matters which would be
deleted by delivery of a current boundary survey to the title company), (C)
include such reinsurance (with such reinsurers) as Transferee may require,
together with direct access agreements with such reinsurers, and (D) be subject
only to the exceptions
to title accepted by Lender in connection with the Endorsement, as
hereinafter defined in Section 16(a)(ii) below).

 

 - 3 - 

 

	 	(i)	 	In addition to the foregoing, simultaneously with
the delivery of the Title Affidavits to Escrow Agent, and provided that
Lender shall have made the request in the Release Notice, Borrower and
Guarantor shall deliver to Escrow Agent documents identical in form and
content to the Conveyance Documents executed by Borrower and Guarantor,
as the case may be, fully executed and notarized, as necessary, having
an Execution Date, an Effective Date, and a date of notarization, all
as applicable, dated after the date of the Release Notice
(collectively, the “Replacement Conveyance Documents”). Escrow
Agent shall within one (1) business day after receipt of the same,
provide written notice to Lender of Escrow Agent’s receipt of such
Replacement Conveyance Documents. If Borrower timely delivers such
Replacement Documents to Escrow Agent, then thereafter (A) the original
Conveyance Documents shall be returned by the Escrow Agent to Borrower
within two (2) Business Days after Escrow Agent’s timely receipt of the
Replacement Conveyance Documents, and (B) all references to the
Conveyance Documents, shall mean and refer to the documents identified
herein as the Replacement Conveyance Documents, whether individually or
collectively, as the case may be.

	 	(c)	 	Any funds received by Escrow Agent from Borrower shall be applied
by Escrow Agent in the order set forth in Section 4(b)(i) through
4(b)(ii) above.

	 
	 	(d)	 	If Borrower fails to timely pay the Deed in Lieu Expenses and
Fees, then Lender and/or Transferee (if other than Lender) may advance such
sums to Escrow Agent, in which event Borrower shall reimburse Lender and/or
Transferee (if other than Lender), as the case may be, for any and all of such
sums so advanced within two (2) Business Days after written demand for
reimbursement by Lender and/or Transferee (if other than Lender), as the case
may be. Borrower and Guarantor shall be jointly and severally liable to Lender
for the cost of the Deed in Lieu Expenses and Fees, together with interest
thereon at the maximum lawful rate from the date the Lender or the Transferee
(if other than Lender) advanced such Deed in Lieu Expenses and Fees until such
Deed in Lieu Expenses and Fees, and all interest thereon, are paid in full
(which obligation shall survive any termination or expiration of this
Agreement).

	 
	 	(e)	 	The obligations of Borrower set forth in this Section 4
shall survive the release of
the Conveyance Documents from escrow and the
recording of the Grant Deed, shall not be deemed in any way to merge into the
Grant Deed or any of the other Conveyance Documents, and shall survive the
expiration or other termination of this Agreement.

 

 - 4 - 

 

	 	(f)	 	If Borrower timely complies with all of the requirements of this
Section 4, then within five (5) Business Days after the Borrower’s satisfaction
of all of such requirements, Lender shall deliver to Borrower three (3) fully
executed originals of the Partial Release Agreement by Lender attached hereto
and made a part hereof as Exhibit G (the “Partial Release by
Lender”).

5. Release of Conveyance Documents. Escrow Agent shall hold the Conveyance Documents
until such time as either:

	 	(a)	 	Escrow Agent receives a Notice (as hereinafter defined) from Lender that the Loan
has been paid in full, in which event, within three (3) Business Days after
receiving such Notice, Escrow Agent shall deliver the Conveyance Documents to
Borrower; or

	 
	 	(b)	 	Escrow Agent receives the Release Notice, in which event Escrow Agent shall:

	 	(i)	 	Deliver to Lender, within five (5) Business Days after receiving the Release
Notice, a copy of the Grant Deed, the original Bill of Sale, the
original Assignment Agreement, the original Release by Borrower
Parties, a copy of the Estoppel, and the original Certification;

	 
	 	(ii)	 	Immediately upon receipt of the Deed in Lieu Expenses and Fees, but in no
event later than two (2) Business Day after receipt of such Deed in
Lieu Expenses and Fees, whether received from Lender or Borrower,
record the Grant Deed in the Official Records, deliver to Lender a
certified copy of the recorded Grant Deed and deliver to Borrower a
copy of all documents provided to Lender pursuant to Section
5(b)(i) above; and

	 
	 	(iii)	 	If Escrow Agent does not receive the Deed in Lieu
Expenses and Fees, the Title Affidavits and/or the Replacement
Conveyance Documents, as applicable, from Borrower within said three
(3) Business Day period, then Escrow Agent shall immediately notify
Lender of the same (but in no event later than one (1) Business Day
after Borrower has failed to timely make payment to Escrow Agent of the
Deed in Lieu Expenses and Fees and/or deliver the Title Affidavits or
Replacement Conveyance Documents, as applicable).

 

 - 5 - 

 

Upon the satisfaction of Escrow Agents obligations set forth in this Section 5, Escrow
Agent shall be relieved of and from any and all further obligations arising under this Agreement
other than as set forth in Section 8 below.

6. Escrow Agent’s Rights in the Event of a Dispute. In an event of a dispute between
Lender, Borrower, any Guarantor and/or Escrow Agent regarding the release of the Conveyance
Documents, the recording of the Grant Deed and/or any other provision of this Agreement governing
the rights and obligations of the parties hereto, Escrow Agent, in the exercise of its
sole but reasonable judgment, and only after providing seven (7) days’ advance written notice
to both Borrower and Lender of Escrow Agent’s intention to do so, shall be entitled to (a) continue
to hold all property held by it under the terms of this Agreement (including, without limitation,
the Conveyance Documents, money and all other property in its hands) until it has received written
instructions from Lender, Borrower and Guarantor regarding the disposition thereof, in which event,
Escrow Agent shall promptly comply with such written instructions, or (b) tender unto the registry
or custody of any court of competent jurisdiction all documents (including, without limitation, the
Conveyance Documents), money and any other property in its hands held under the terms of this
Agreement, together with such legal pleadings as it deems appropriate. In such an event, Escrow
Agent shall provide Lender, Borrower and Guarantor with a copy of any and all documents and
pleadings related thereto, and thereafter Escrow Agent shall be discharged of and from any and all
further obligations arising hereunder. Escrow Agent shall be permitted to receive reasonable
compensation for preparation of interpleading petitions, service upon the parties and filing the
petition. Borrower and Guarantor shall be jointly, severally and solely responsible for the any and
all sums due Escrow Agent related to the exercise by Escrow Agent of its rights set forth in this
Section 6. 

7. Indemnification of Escrow Agent. Borrower and Guarantor hereby agree to jointly and
severally defend, indemnify, and hold Escrow Agent harmless from and against any and all losses,
claims, damages, liabilities and expenses, including without limitation, reasonable cost of
investigation and attorneys fees and disbursements which may be imposed upon or incurred by Escrow
Agent in connection with its serving as Escrow Agent hereunder. The terms of this Section 7 shall
survive the release of the Conveyance Documents, the recording of the Grant Deed and the
termination or expiration of this Agreement.

8. Further Assurances. Each of the parties hereto agrees that, without receiving further
consideration, they will sign and deliver such documents and do anything else that is necessary in
the future to make the provisions of this Agreement effective. The terms of this Section 8 shall
survive the release of the Conveyance Documents, the recording of the Grant Deed and the
termination or expiration of this Agreement.

9. Notices. Any notice, demand, statement, request or consent (each, a “Notice”)
made hereunder shall be in writing and delivered personally or sent to the party to whom the Notice
is being made by overnight delivery for morning delivery on the next Business Day by FedEx or other
nationally recognized overnight delivery service, as follows and shall be deemed given when
delivered personally or one (1) Business Day after being deposited with FedEx or such other
nationally recognized delivery service in compliance with the foregoing requirements:

 

 - 6 - 

 

If to Lender:

Bank of America, National Association, as Trustee

for the Benefit of the Holders of Wachovia Bank

Commercial Mortgage Trust, Commercial Mortgage

Pass-Through Certificates, Series 2007 — Whale 8

540 West Madison Street

Mail Code IL4-540-18-04

Chicago, Illinois 60661

With a copy to:

CWCapital Asset Management LLC

701 13th Street NW, #1000

Washington, DC 20005

Attn: Mr. Kevin Thompson

With a copy to:

Nixon Peabody LLP

437 Madison Avenue

New York, NY 10022

Attn: Arthur J. Rosner, Esq. and

Andrew Glincher, P.C., Esq.

If to Trustee:

First American Title Insurance Company

520 North Central Avenue

Glendale, California 91203

If to Escrow Agent:

Chicago Title Company

455 Market Street, Suite 2100

San Francisco, CA 94105

Attn: Tyson Miklebost

If to Borrower:

Mondrian Holdings LLC

c/o Morgans Hotel Group

475 Tenth Avenue

New York, New York 10018

Attn: General Counsel

 

 - 7 - 

 

With a copy to:

Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, DC 20004

Attn: Bruce Gilchrist, Esq.

If to Morgans:

Morgans Group LLC

c/o Morgans Hotel Group

475 Tenth Avenue

New York, New York 10018

Attn: General Counsel

With a copy to:

Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, DC 20004

Attn: Bruce Gilchrist, Esq.

 

 - 8 - 

 

If to Mondrian Pledgor:

Mondrian Pledgor LLC

c/o Morgans Hotel Group

475 Tenth Avenue

New York, New York 10018

Attn: General Counsel

With a copy to:

Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, DC 20004

Attn: Bruce Gilchrist, Esq.

If to 8440

8840 LLC

c/o Morgans Hotel Group

475 Tenth Avenue

New York, New York 10018

With a copy to:

Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, DC 20004

Attn: Bruce Gilchrist, Esq.

Any party hereto may change its address for delivery of such Notices by providing the other parties
to this Agreement with Notice of such change of address, which Notice of such change of address
shall be effective upon receipt and only if actually received by the party to whom the Notice is
sent.

10. Escrow Agent’s Expenses. Borrower and Guarantor shall be solely, jointly and
severally liable to Escrow Agent for all costs and expenses incurred by Escrow Agent in carrying
out the obligations and exercising its rights set forth in this Agreement. Escrow Agent shall not
look to any other party for reimbursement of, or liability for, such costs and expenses. In this
connection, Escrow Agent has obtained whatever assurances Escrow Agent deems necessary from the
appropriate parties to firmly bind Escrow Agent to fully and completely carry out its rights and
obligations set forth in this Agreement.

11. Governing Law. This Agreement and the obligations arising hereunder shall be governed
by, and construed in accordance with, the laws of the State of California applicable to contracts
made and performed in such state (without regard to principles of conflict of laws) and any
applicable law of the United States of America.

 

 - 9 - 

 

12. Interpretation. Within this Agreement, words of any gender shall be held and
construed to include any other gender, and words in the singular number shall be held and construed
to include the plural, unless the context otherwise requires. The section headings used herein are
intended for reference purposes only and shall not be considered in the interpretation of the terms
and conditions hereof. The parties acknowledge that the parties and their counsel have reviewed
and revised this Agreement and that the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or any exhibits or amendments hereto.

13. Amendment. The terms and conditions hereof may not be modified, altered or otherwise
amended except by an instrument in writing executed by all of the parties hereto and Guarantor.

14. Successors and Assigns. The terms and conditions of this Agreement shall be binding
upon and shall inure to the benefit of the parties hereto, their successors, assigns and
designees.

15. Time is of the Essence. Time is of the essence with respect to the payment,
performance and observance of each and every covenant, agreement, condition and obligation of
Borrower under this Agreement and the other Loan Documents, subject to applicable notice and cure
periods.

16. Severability. If any provision of this Agreement or the application thereof to any
person or entity or circumstance shall, at any time or to any extent, be invalid or unenforceable,
the remainder of this Agreement, and the application of such provision to persons or entities or
circumstances other than those to which it is held invalid or unenforceable, shall not be affected
thereby, and each provision of this Agreement shall be valid and shall be enforced to the fullest
extent permitted by law.

17. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, and all of which, when taken together, shall constitute one and
the same instrument.

18. Entire Agreement. This Agreement, the documents attached hereto as Exhibits and the
instruments, documents and agreements referenced in this Agreement contain the entire agreement
between the parties hereto with respect to holding and releasing the Conveyance Documents and shall
supersede all prior and contemporaneous agreements and understanding between the parties pertaining
to such subject matter.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 - 10 - 

 

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed under seal as of
the day and year first above written.

LENDER:

BANK OF AMERICA, NATIONAL ASSOCIATION, AS SUCCESSOR BY MERGER TO LASALLE BANK
NATIONAL ASSOCIATION, AS TRUSTEE FOR THE BENEFIT OF THE HOLDERS OF WACHOVIA BANK
COMMERCIAL MORTGAGE TRUST, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2007-WHALE 8

By and through CWCapital Asset Management LLC, solely in its capacity as
Special Servicer for the Holder

	 	 	 	 	 
	 	By:  	                              /s/ Kevin Thompson
 	 
	 	 	Name:  	Kevin Thompson 	 
	 	 	Title:  	Vice President 	 

 

 - 11 - 

 

	 	 	 	 	 
	 	ESCROW AGENT:

CHICAGO TITLE COMPANY,

a California corporation

 	 
	 	By:  	/s/ Terina Kung
 	 
	 	 	Name:  	Terina Kung 	 
	 	 	Title:  	Escrow Officer 	 

 

 - 12 - 

 

	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONDRIAN HOLDINGS LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Mondrian Senior Mezz LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a Delaware corporation, its managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ Richard Szymanski	 	 
	 

	 	 	 	 	 	 	 	 	 	 

Name: Richard Szymanski
	 	 
	 

	 	 	 	 	 	 	 	 	 	Title: Chief Financial Officer	 	 

The undersigned Guarantor hereby (i) consents to the terms of the Modification Agreements and
(ii) joins in this Agreement for the sole purposes of agreeing to the obligations imposed on the
undersigned Guarantor in this Agreement, for which obligations Guarantor shall be bound as if
Guarantor was a party hereto.

	 	 	 	 	 	 	 	 	 
	 	 	MORGANS:
	 
	 	 	 	 	 	 	 	 
	 	 	MORGANS GROUP LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Morgans Hotel Group Co., a Delaware corporation, its managing member
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Richard Szymanski
 

Name: Richard Szymanski
	 	 
	 

	 	 	 	 	 	Title: Chief Financial Officer	 	 

 

 - 13 - 

 

The undersigned Guarantors and SPE Pledgors hereby (i) consent to the terms of this Agreements
and (ii) join in this Agreement for the sole purposes of agreeing to the obligations imposed on the
undersigned Guarantors and SPE Pledgors in this Agreement, for which obligations Guarantors and SPE
Pledgors shall be bound as if Guarantors and SPE Pledgors are parties hereto.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONDRIAN PLEDGOR:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONDRIAN PLEDGOR LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Mondrian Senior Mezz LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a Delaware corporation, its managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ Richard Szymanski	 	 
	 

	 	 	 	 	 	 	 	 	 	 

Name: Richard Szymanski
	 	 
	 

	 	 	 	 	 	 	 	 	 	Title: Chief Financial Officer	 	 

 

 - 14 - 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	8440:
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	8440 LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Mondrian Pledgor LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Mondrian Senior Mezz LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a Delaware corporation, its managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	By:
	 	/s/ Richard Szymanski	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

Name: Richard Szymanski
	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Title: Chief Financial Officer	 	 

 

 - 15 - 

 

EXHIBIT A

GRANT DEED

 

 

 

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO:

Nixon Peabody LLP

437 Madison Avenue

New York, New York 10022

Attn: Arthur J. Rosner, Esq.

MAIL TAX STATEMENTS TO:

Bank of America, National Association, as Trustee for

the Benefit of the Holders of Wachovia Bank

Commercial Mortgage Trust, Commercial

Mortgage Pass-through Certificates,

Series 2007-Whale 8

540 West Madison Street

Mail Code IL4-540-18-04

Chicago, Illinois 60661

 

SPACE ABOVE FOR RECORDER’S USE

APN: 5555-002-147

GRANT DEED

The undersigned grantor declares that no Documentary Transfer Tax is due under Rev. &
Tax. Code §11926 on the grounds that the transfer herein was made in lieu of foreclosure and the
consideration therefor does not exceed Grantor’s outstanding indebtedness of $_______. See
Separate Tax Declaration.

FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, MONDRIAN HOLDINGS LLC, a
Delaware limited liability company (“Grantor”), hereby GRANTS to            
                      
                   
       , a             
                    
        (“Grantee”), the following
described real property in the County of Los Angeles, State of California, as described in
Exhibit “A” attached hereto and incorporated herein by this reference, together with the
tenements, easements, rights-of-way, and appurtenances belonging or in any way appurtenant to the
same, and all improvements and fixtures thereon (collectively, the “Property”).

This deed is an absolute conveyance, the Grantor having sold the above-described Property to
the Grantee for a fair and adequate consideration, such consideration being the agreement of Lender
(as such term is defined in Exhibit B) to not foreclose on the Deed of Trust (as such term is
defined in Exhibit B).

 

1

 

The Property is hereby conveyed by Grantor to Grantee subject to the loan documents described
on Exhibit “B” attached hereto and incorporated herein by this reference (the “Loan
Documents”). Grantor and Grantee acknowledge and agree that (i) the beneficial interest of
Beneficiary in the Property pursuant to the Deed of Trust shall not be extinguished by the
execution and delivery of this Grant Deed; (ii)shall enjoy the same validity and priority that they
now enjoy; and (iii) shall not merge or be merged into the fee interest of Grantee in the Property
pursuant to this Grant Deed, and that such interests shall be and remain at all times separate and
distinct.

[Signature Page Follows]

 

2

 

	 	 	 	 	 	 	 	 	 
	 	 	GRANTOR:	 	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:	 	MONDRIAN HOLDINGS, LLC,
	_______________, 20____	 	a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Mondrian Senior Mezz LLC, a Delaware limited

liability company, its sole member
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited

liability company, its sole member
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	Morgans Hotel Group Co., a Delaware
corporation, its managing member
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 

	 	 	 	 	 	 	 	Title:

 

1

 

EXHIBIT A 

LEGAL DESCRIPTION OF PROPERTY

All the following described real property, located in the County of Los Angeles, State of
California, being more particularly described as follows:

Lot “A” of Tract 2527, in the city of West Hollywood, county of Los Angeles, state of California,
as per map recorded in Book 34 Page 14 of Maps, in the office of the county recorder of said
county.

EXCEPT therefrom that portion thereof lying Southerly of a line bearing North 89 degrees 54’ West
from a point on the East line of said Lot, distant North 0 degrees 06’ East thereon 320 feet from
the Southeast corner of said Lot.

APN: 5555-002-147

END DESCRIPTION

 

2

 

EXHIBIT B

LOAN DOCUMENTS

	1.	 	Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing dated as of October
6, 2006, by Grantor to First American Title Insurance Company, in its capacity as trustee for
the Wachovia Bank, National Association (the “Original Lender”), as recorded in the
Office of the County Recorder of the County of Los Angeles, State of California (the
“Office”) on October 25, 2006, as Instrument No. 06-2368097, as assigned by the
Original Lender to LaSalle Bank National Association, as Trustee for the Benefit of the
Holders of Wachovia Bank Commercial Mortgage Trust, Commercial Mortgage Pass-Through
Certificates, Series 2007-WHALE 8 (“LaSalle”), by that certain Assignment of Deed of
Trust Security Agreement, Assignment of Rents and Fixture Filing and Assignment of Leases and
Rents recorded on December 31, 2007, in the Office as Instrument No. 20072857366 (the
“LaSalle Assignment”), and as amended by that certain Restatement and Modification of
Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing dated as of the date
of this Grant Deed by Grantor and BANK OF AMERICA, NATIONAL ASSOCIATION, AS SUCCESSOR BY
MERGER TO LASALLE BANK NATIONAL ASSOCIATION, as Trustee for the Benefit of the Holders of
Wachovia Bank Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series
2007-WHALE 8, (the “Lender”), to be recorded in the Office prior to the recording of
this Grant Deed, together with the obligations secured thereby.

	 
	2.	 	Assignment of Leases and Rents and Security Deposits by Grantor, in favor of Original Lender,
dated as of October 6, 2006, and recorded in the Office on October 25, 2006, as Instrument No.
06-2368098, as assigned to LaSalle by the LaSalle Assignment, and as amended and restated by
that certain Amended and Restated Assignment of Leases and Rents and Security Deposits by and
between Grantor and Lender, to be recorded in the Office prior to the recording of this Grant
Deed.

	 
	3.	 	UCC-1 Financing Statement by Grantor, as Debtor, and Lender, as Secured Party, to be recorded
in the Office prior to the recording of this Grant Deed.

NOTE: BANK OF AMERICA NATIONAL ASSOCIATION IS SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL
ASSOCIATION, BY VIRTUE OF A MERGER EFFECTIVE AS OF OCTOBER 17, 2008.

 

3

 

STATE OF NEW YORK          )

) §

COUNTY OF NEW YORK     )

On            
                     
        , 20_______, before me,           
                      
                      
     , a Notary Public, personally
appeared             
                      
       who proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct

WITNESS my hand and official seal.

                                                            

Signature of Notary

(Affix seal here)

 

4

 

EXHIBIT B

BILL OF SALE

 

 

 

BILL OF SALE

MONDRIAN HOLDINGS LLC, a Delaware limited liability company (the “Assignor”), in
consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, does hereby quitclaim
unto            
                     
                     
       , a               
                     
     (the “Assignee”), all of Assignor’s right, title and interest in and to all of the
furniture, furnishings, fixtures, equipment and other tangible personal property described in
Exhibit A attached hereto and made a part hereof (collectively, the “Personal
Property”) that is now affixed to and/or located at the real property described in Exhibit
B attached hereto and made a part hereof (the “Real Property”).

TO HAVE AND TO HOLD the Personal Property unto Assignee and Assignee’s heirs, legal
representatives, successors and assigns forever.

ASSIGNOR REPRESENTS AND WARRANTS TO ASSIGNEE THAT:

	 	(i)	 	ASSIGNOR IS THE OWNER OF THE PERSONAL PROPERTY;

	 
	 	(ii)	 	OTHER THAN FOR ANY LIEN IN FAVOR OF BANK OF AMERICA, NATIONAL ASSOCIATION, AS SUCCESSOR
BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE BENEFIT OF THE HOLDERS
OF WACHOVIA BANK COMMERCIAL MORTGAGE TRUST, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES,
SERIES 2007-WHALE 8 (THE “LENDER”), THE PERSONAL PROPERTY IS FREE AND CLEAR OF ANY
AND ALL LIENS, LEASES AND ANY AND ALL OTHER ENCUMBRANCES OR INTERESTS IN FAVOR OF ANY THIRD
PARTY; AND

	 
	 	(iii)	 	AS TO THE PHYSICAL CONDITION OF THE PERSONAL PROPERTY, THE PERSONAL PROPERTY IS BEING
QUITCLAIMED “AS IS”, “WHERE IS”, AND “WITH ALL FAULTS” AS OF THE EFFECTIVE DATE OF THIS
BILL OF SALE, WITHOUT ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO ITS CONDITION,
FITNESS FOR ANY PARTICULAR PURPOSE MERCHANTABILITY OR ANY OTHER WARRANTY AS TO ITS PHYSICAL
CONDITION, EXPRESS OR IMPLIED.

Assignor hereby agrees to indemnify, defend and hold harmless Assignee and Assignee’s affiliates
and their respective past and present nominees, designees, parents, subsidiaries, affiliates,
master servicers and special servicers, and all of their respective officers, directors,
shareholders, members, partners, agents, employees, servants, attorneys and representatives, as
well as the respective heirs, personal representatives, successors and assigns of any and all of
them (collectively, the “Indemnified Parties”) from and against all claims, suits,
obligations, liabilities, damages, losses, costs, and expenses, including without limitation,
reasonable attorneys’ fees and disbursements (with counsel reasonably acceptable to the Indemnified
Parties), arising out of or relating to any of the Personal Property, and arising or occurring
prior to the Effective Date.

 

 

 

Assignor agrees that, without receiving further consideration, Assignor will sign and deliver such
documents and do anything else that is necessary in the future to make the provisions of this Bill
of Sale effective and complete.

[SIGNATURE PAGE FOLLOWS]

 

2

 

IN
WITNESS WHEREOF, Assignor has signed and delivered this Bill of Sale effective as of the                                         
day of             
                    
                     
       , 20_______ (the “Effective Date”).

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	ASSIGNOR:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONDRIAN HOLDINGS LLC, a Delaware limited liability company	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Mondrian Senior Mezz LLC, a Delaware limited liability company, its sole member	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole member	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a Delaware
corporation, its managing member	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name:	 
	 

	 	 	 	 	 	 	 	 	 	Title:	 

 

3

 

EXHIBIT A

Description of the Personal Property

All machinery, equipment, systems, fittings, apparatus, appliances, furniture, furnishings,
tools, fixtures, Inventory (as defined in the Uniform Commercial Code as in effect from time
to time in the State of California) and articles of personal property and accessions thereof
and renewals, replacements thereof and substitutions therefor (including, but not limited
to, all plumbing, lighting and elevator fixtures, office furniture, beds, bureaus,
chiffonniers, chests, chairs, desks, lamps, mirrors, bookcases, tables, rugs, carpeting,
drapes, draperies, curtains, shades, venetian blinds, wall coverings, screens, paintings,
hangings, pictures, divans, couches, luggage carts, luggage racks, stools, sofas, chinaware,
flatware, linens, pillows, blankets, glassware, foodcarts, cookware, dry cleaning
facilities, dining room wagons, keys or other entry systems, bars, bar fixtures, liquor and
other drink dispensers, icemakers, radios, television sets, intercom and paging equipment,
electric and electronic equipment, dictating equipment, telephone systems, computerized
accounting systems, engineering equipment, vehicles, medical equipment, potted plants,
heating, lighting and plumbing fixtures, fire prevention and extinguishing apparatus, theft
prevention equipment, cooling and air-conditioning systems, elevators, escalators, fittings,
plants, apparatus, stoves, ranges, refrigerators, laundry machines, tools, machinery,
engines, dynamos, motors, boilers, incinerators, switchboards, conduits, compressors, vacuum
cleaning systems, floor cleaning, waxing and polishing equipment, call systems, brackets,
signs, bulbs, bells, ash and fuel, conveyors, cabinets, lockers, shelving, spotlighting
equipment, dishwashers, garbage disposals, washers and dryers), other customary hotel
equipment and other property of every kind and nature whatsoever owned by Assignor, or in
which Assignor has or shall have an interest, now or hereafter located upon, or in, and used
in connection with the Real Property or the improvements located thereon, or appurtenant
thereto, and all building equipment, materials and supplies of any nature whatsoever owned
by Assignor, or in which Assignor has or shall have an interest, now or hereafter located
upon, or in, and used in connection with the Real Property or the improvements or
appurtenant thereto, together with all proceeds, products, substitutions and accessions
(including claims and demands therefor) of each of the foregoing.

 

 

 

EXHIBIT B

Description of the Real Property

Mondrian Real Property Legal Description

Lot “A” of Tract 2527, in the city of West Hollywood, county of Los Angeles, state of California,
as per map recorded in Book 34 Page 14 of Maps, in the office of the county recorder of said
county.

EXCEPT therefrom that portion thereof lying Southerly of a line bearing North 89 degrees 54’ West
from a point on the East line of said Lot, distant North 0 degrees 06’ East thereon 320 feet from
the Southeast corner of said Lot.

 

 

 

EXHIBIT C

ASSIGNMENT AGREEMENT

 

 

 

ASSIGNMENT AGREEMENT

THIS
ASSIGNMENT AGREEMENT (the “Assignment”), is made
and entered into as of the _______ day of       
                     
                      
           ,
20_______ (the “Effective Date”), by MONDRIAN HOLDINGS LLC, a Delaware limited liability
company (the “Assignor”), in favor of              
                    
                   
        , a           
                      
        (the “Assignee”).

RECITALS:

WHEREAS, by that certain Grant Deed by Assignor to Assignee, dated as of the Effective Date,
Assignor is conveying to Assignee that certain real property described on Exhibit A
attached hereto and made a part hereof (the “Real Property”); and

WHEREAS, by that certain Bill of Sale by Assignor to Assignee, dated as of the Effective Date,
(the “Bill of Sale”), Assignor is conveying certain personal property, as more particularly
set forth therein (the “Personal Property”); and

WHEREAS, Assignor is the owner of the property described on Exhibit B attached hereto
and made a part hereof (collectively, the “Assigned Property”), which Assigned Property
Assignor collaterally assigned to WACHOVIA BANK, NATIONAL ASSOCIATION, pursuant to that certain
Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing dated as of October 6,
2006, recorded in the Office of the County Recorder of the County of Los Angeles, State of
California (the “Office”), on October 25, 2006, as Instrument No. 06-2368097, as assigned
by Wachovia Bank, National Association, to LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE
BENEFIT OF THE HOLDERS OF WACHOVIA BANK COMMERCIAL MORTGAGE TRUST, COMMERCIAL MORTGAGE PASS-THROUGH
CERTIFICATES, SERIES 2007-WHALE 8 (the “Lender”); and

WHEREAS, by virtue of a merger effective as of October 17, 2008, Bank of America, National
Association, is successor by merger to LaSalle Bank National Association; and

WHEREAS, by that certain Restatement and Modification of Deed of Trust, Security Agreement,
Assignment of Rents and Fixture Filing by and between Assignor and Lender, dated effective as of
July 11, 2010 (said deed of trust, as assigned and as modified,
collectively, the “Deed of Trust”); and

WHEREAS, Assignor desires to assign and convey unto Assignee all of Assignor’s right, title
and interest in and to the Assigned Property in accordance with the terms of this Assignment.

 

1

 

NOW, THEREFORE, in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor
hereby agrees as follows:

	 	1.	 	The recitals set forth above are true and correct and are incorporated herein.

	 
	 	2.	 	All capitalized terms set forth in this Assignment, including, but not limited
to, Exhibit A and Exhibit B attached hereto, shall have the meaning
ascribed to such terms in the Deed of Trust.

	 
	 	3.	 	Assignor does hereby assign and convey unto Assignee all of Assignor’s right,
title and interest in and to the Assigned Property, to the extent the same are
transferable by Assignor.

	 
	 	4.	 	Assignor represents and warrants to Assignee that Assignor owns the Assigned
Property free and clear of and from any and all security interests other than the
security interests running in favor of Lender arising out of the Loan Documents.

	 
	 	5.	 	Assignor hereby agrees to defend, indemnify, and hold harmless Assignee,
Assignee’s affiliates and their respective past and present nominees, designees,
parents, subsidiaries, affiliates, and all of their respective officers, directors,
shareholders, members, partners, agents, employees, servants, attorneys and
representatives, as well as the respective heirs, personal representatives, successors
and assigns (collectively, the “Indemnified Parties”) from and against any and
all claims, suits, obligations, liabilities, damages, losses, costs, and expenses,
including without limitation, reasonable attorneys’ fees and disbursements (with
counsel reasonably acceptable to the Indemnified Parties) in any way related to all or
any of the Assigned Property, arising or occurring prior to the Effective Date.

	 
	 	6.	 	Notwithstanding the foregoing, Assignee shall not be liable for any of the
duties or obligations of Assignor.

	 
	 	7.	 	Assignor agrees that, without receiving further consideration, Assignor will
sign and deliver such documents and do anything else that is necessary in the future to
make the provisions of this Assignment effective and complete.

	 
	 	8.	 	This Assignment shall be (a) binding upon Assignor, and inure to the benefit of
Assignee, and Assignee’s heirs, legal representatives, successors and assigns, and (b)
construed in accordance with the laws of the jurisdiction in which the Real Property is
located, without regard to the application of choice of law principles, except to the
extent such laws are superseded by federal law.

[Intentionally Left Blank]

 

2

 

IN WITNESS WHEREOF, this Assignment has been signed and delivered by the Assignor and shall be
effective as of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONDRIAN HOLDINGS LLC, a Delaware limited liability company	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Mondrian Senior Mezz LLC, a Delaware limited liability company, its sole member	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole member	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a Delaware corporation, its managing member	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	By:	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Name:	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Title:	 

 

3

 

EXHIBIT A

REAL PROPERTY DESCRIPTION

Mondrian Real Property Legal Description

Lot “A” of Tract 2527, in the city of West Hollywood, county of Los Angeles, state of California,
as per map recorded in Book 34 Page 14 of Maps, in the office of the county recorder of said
county.

EXCEPT therefrom that portion thereof lying Southerly of a line bearing North 89 degrees 54’ West
from a point on the East line of said Lot, distant North 0 degrees 06’ East thereon 320 feet from
the Southeast corner of said Lot.

 

4

 

EXHIBIT B

ASSIGNED PROPERTY DESCRIPTION

Excluding (i) the Real Property and Improvements conveyed to Assignee pursuant to the Grant of
Deed, and (ii) any of the Property conveyed to Assignee pursuant to the Bill of Sale, any and all
Property collaterally assigned to Lender pursuant to the Loan Documents, including, but not limited
to, the following:

	 	1.	 	Any and all contracts, leases and agreements of any kind for the management, repair or
operation of the Property in effect as of the date of this Agreement (collectively,
“Contracts”);

	 
	 	2.	 	Any and all licenses, permits, authorizations, certificates of occupancy and other
approvals that are in effect as of the date of this Agreement and necessary for the current
use and operation of the Property (collectively, “Permits”);

	 
	 	3.	 	Any and all warranties, telephone exchange numbers, architectural or engineering plans
and specifications, and development rights that exist as of the date of this Agreement and
relate to the Property (collectively, the “General Intangibles”);

	 
	 	4.	 	The goodwill associated with the Real Property and the business operated thereon;

	 
	 	5.	 	All awards or payments, including interest thereon, which may hereafter be made with
respect to the Premises, the Improvements, the Fixtures, or the Equipment, whether from the
exercise of the right of eminent domain (including but not limited to any transfer made in
lieu of or in anticipation of the exercise of said right), or for a change of grade, or for
any other injury to or decrease in the value of the Premises, the Improvements or the
Equipment or refunds with respect to the payment of property taxes and assessments, and all
other, proceeds of the conversion, voluntary or involuntary, of the Premises, Improvements,
Equipment, Fixtures or any other Property or part thereof into cash or liquidated claims;

	 
	 	6.	 	All leases, tenancies, franchises, licenses and permits, Property Agreements and other
agreements affecting the use, enjoyment or occupancy of the Premises, the Improvements, the
Fixtures, or the Equipment or any portion thereof now or hereafter entered into, whether
before or after the fling by or against Assignor of any petition for relief under the
Bankruptcy Code and all reciprocal easement agreements, license
agreements and other agreements with Pad Owners (hereinafter collectively referred to as the
“Leases”), together with all receivables, revenues, rentals, credit card receipts,
receipts and all payments received which relate to the rental, lease, franchise and use of
space at the Premises or which relate to the Food and Beverage Lessee/Operators (it being
acknowledged by Lender that the security interest granted hereunder in receivables,
revenues, rentals, credit card receipts, receipts and all payments received which relate to
the Food and Beverage Lessee/Operators shall not attach to interests of third-party joint
venture partners of Assignor which are not Affiliates of Assignor) and rental and use of
guest rooms or meeting rooms or banquet rooms or recreational facilities or bars, beverage
or food sales, vending machines, mini-bars, room service, telephone, video and television
systems, electric mail, internet connections, guest laundry, bars, the provision or sale of
other goods and services, and all other payments received from guests or visitors of the
Premises, and other items of revenue, receipts or income as identified in the Uniform System
of Accounts (as hereinafter defined), all cash or security deposits, lease termination
payments, advance rentals and payments of similar nature and guarantees or other security
held by, or issued in favor of, Assignor in connection therewith to the extent of Assignor’s
right or interest therein and all remainders, reversions and other rights and estates
appurtenant thereto, and all base, fixed, percentage or additional rents, and other rents,
oil and gas or other mineral royalties, and bonuses, issues, profits and rebates and refunds
or other payments made by any Governmental Authority from or relating to the Premises, the
Improvements, the Fixtures or the Equipment plus all rents, common area charges and other
payments now existing or hereafter arising, whether paid or accruing before or after the
filing by or against Assignor of any petition for relief under the Bankruptcy Code (the
“Rents”) and all proceeds from the sale or other disposition of the Leases and the
right to receive and apply the Rents to the payment of the Debt;

 

5

 

	 	7.	 	All proceeds of and any unearned premiums on any insurance policies covering the
Premises, the Improvements, the Fixtures, the Rents or the Equipment, including, without
limitation, the right to receive and apply the proceeds of any insurance, judgments, or
settlements made in lieu thereof, for damage to the Premises, the Improvements, the
Fixtures or the Equipment and all refunds or rebates of Impositions, and interest paid or
payable with respect thereto;

	 
	 	8.	 	All deposit accounts, securities accounts, funds or other accounts maintained or
deposited with Lender, or its assigns, in connection herewith, including, without
limitation, the Security Deposit Account (to the extent permitted by law), the Engineering
Escrow Account, the Central Account, the Sub-Accounts and the Escrow Accounts and all
monies and investments deposited or to be deposited in such accounts;

	 
	 	9.	 	All accounts receivable, contract rights, franchises, interests, estate or other
claims, both at law and in equity, now existing or hereafter arising, and relating to the
Premises, the Improvements, the Fixtures or the Equipment, not included in Rents,
including, without limitation that certain ISDA Master Agreement,
dated as of             
                     
       , 2010,
between Assignor and SMBC Derivatives Products Limited, as Counterparty, as supplemented by
the Schedule and the Confirmation relating thereto (as may be amended from time to time)
between such parties dated as of the same date;

	 
	 	10.	 	All now existing or hereafter arising claims against any Person with respect to any
damage to the Premises, the Improvements, the Fixtures or the Equipment, including, without
limitation, damage arising from any defect in or with respect to the design or construction
of the Improvements, the Fixtures or the Equipment and any damage resulting therefrom;

 

6

 

	 	11.	 	All deposits or other security or advance payments, including rental payments now or
hereafter made by or on behalf of Assignor to others, with respect to (i) insurance
policies, (ii) utility services, (iii) cleaning, maintenance, repair or similar services,
(iv) refuse removal or sewer service, (v) parking or similar services or rights and (vi)
rental of Equipment, if any, relating to or otherwise used in the operation of the
Premises, the Improvements, the Fixtures or the Equipment;

	 
	 	12.	 	All intangible property now or hereafter relating to the Premises, the Improvements,
the Fixtures or the Equipment or its operation, including, without limitation, software,
letter of credit rights, trade names, trademarks (including, without limitation, any
licenses of or agreements to license trade names or trademarks now or hereafter entered
into by Assignor), logos, building names and goodwill;

	 
	 	13.	 	All now existing or hereafter arising advertising material, guaranties, warranties,
building permits, other permits, licenses, plans and specifications, shop and working
drawings, soil tests, appraisals and other documents, materials and/or personal property of
any kind now or hereafter existing in or relating to the Premises, the Improvements, the
Fixtures, and the Equipment;

	 
	 	14.	 	All now existing or hereafter arising drawings, designs, plans and specifications
prepared by architects, engineers, interior designers, landscape designers and any other
consultants or professionals for the design, development, construction, repair and/or
improvement of the Property, as amended from time to time;

	 
	 	15.	 	The right, in the name of and on behalf of Assignor, to appear in and defend any now
existing or hereafter arising action or proceeding brought with respect to the Premises,
the Improvements, the Fixtures or the Equipment and to commence any action or proceeding to
protect the interest of Lender in the Premises, the Improvements, the Fixtures or the
Equipment;

	 
	 	16.	 	All accounts, chattel paper, deposit accounts, fixtures,- general intangibles, goods,
instruments and securities accounts (each as defined in the Uniform Commercial Code as in
effect from time to time in the State of California (the “UCC Collateral”); and

	 
	 	17.	 	All proceeds, products, substitutions and accessions (including claims and demands
therefor) of each of the foregoing.

 

7

 

EXHIBIT D

RELEASE BY BORROWER PARTIES

 

 

 

PARTIAL RELEASE AGREEMENT

PARTIAL RELEASE OF BORROWER AND GUARANTOR

THIS PARTIAL RELEASE AGREEMENT (this “Release”) is executed as of the
 _____ 
day of
September, 2010 (the “Execution Date”), but effective for all purposes as of the
 _____ 
day of
                                        , 20_____ 
(the “Effective Date”), by BANK OF AMERICA, NATIONAL
ASSOCIATION, AS SUCCESSOR TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE REGISTERED
HOLDERS OF WACHOVIA BANK COMMERCIAL MORTGAGE TRUST, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES,
SERIES 2007-WHALE 8 (the “Lender”), having an address at 540 West Madison Street, Mail Code
IL4-540-18-04, Chicago, Illinois 60661, in favor of MONDRIAN HOLDINGS LLC, a Delaware limited
liability company (the “Borrower”), MONDRIAN PLEDGOR LLC, a Delaware limited liability
company (the “Mondrian Pledgor”), and 8440 LLC, a Delaware limited liability company
(“8440”, and together with Mondrian Pledgor, the “Guarantor”), each of the
foregoing having an address at c/o Morgans Hotel Group, 475 Tenth Avenue, New York, New York 10018.

RECITALS:

WHEREAS, Lender is the holder of (i) that certain Promissory Note A-1 in the amount of
$60,250,000.00, dated as October 6, 2006, by Borrower in favor of Lender’s predecessor in interest,
Wachovia Bank, National Association (“Original Lender”), as modified by the A-1 Note
Modification Agreement dated as of the Execution Date (the “A-1 Note Modification
Agreement”) between Borrower and Lender (as modified, “Note A-1”) and (ii) that certain
Promissory Note A-2 dated as of October 6, 2006, between Borrower and Original Lender, in the
amount of $60,250,000.00, as modified by the A-2 Note Modification Agreement dated as of the
Execution Date (the “A-2 Note Modification Agreement”) between Borrower and Lender (as
modified, “Note A-2”, together with Note A-1 hereinafter collectively, the “Note”);
and

WHEREAS, the Note is secured by (i) that certain Deed of Trust, Security Agreement, Assignment
of Rents and Fixture Filing dated as of October 6, 2006, by Borrower in favor of First American
Title Insurance Company, as Trustee for the benefit of the Original Lender, recorded in the
Official Records of the Office of the County Recorder of the County of Los Angeles, State of
California (the “Official Records”), on October 25, 2006, as Instrument No. 06-2368097 (the
“Original Deed of Trust”), which Original Deed of Trust was agreed to and consented to by
Mondrian Pledgor and 8440; and

WHEREAS, (i) the Note was assigned by Original Lender to LaSalle Bank National Association, as
Trustee for the Benefit of the Holders of Wachovia Bank Commercial Mortgage Trust, Commercial
Mortgage Pass-Through Certificates, Series 2007-WHALE 8 (“LaSalle”), and (ii) the
beneficial interest in the Deed of Trust was assigned by Original Lender to LaSalle, as more
particularly set forth in that certain Assignment of Deed of Trust, Security Agreement, Assignment
of Rents and Fixture Filing and Assignment of Assignment of Leases and Rents effective as of June
27, 2007, by Original Lender in favor of LaSalle, recorded in the Official Records on December 31,
2007, as Instrument No. 20072857366; and

WHEREAS, Lender has agreed to enter into (a) the A-1 Note Modification Agreement, (b) the A-2
Note Modification Agreement, and (c) that certain Restatement and Modification of Deed of Trust,
Security Agreement, Assignment of Rents and Fixture Filing by and between Borrower and Lender dated
as of the Effective Date amending the Original Deed of Trust (the
“Deed of Trust Modification Agreement,” and together with the Original Deed of Trust, the “Deed of
Trust”), to be recorded in the Official Records, which A-1 Note Modification Agreement, A-2
Note Modification Agreement and Deed of Trust Modification Agreement have been agreed to and
consented to by Mondrian Pledgor and 8440; and

 

 

 

WHEREAS, as of the Effective Date, Borrower is in default under the terms of the Note and Deed
of Trust; and

WHEREAS, by virtue of Borrower being in default under the Note and Deed of Trust, Borrower,
Lender and Guarantor have agreed to enter into a deed in lieu of foreclosure transaction (the “Deed
in Lieu Transaction”) to convey the Property (as defined in the Deed of Trust) in lieu of Lender
filing a foreclosure action or pursuing other remedies available to Lender; and

WHEREAS, effective as of the Effective Date, Borrower has delivered to Lender a Grant Deed
conveying fee simple title to the Real Property (as defined in the Deed of Trust) to a designee of
Lender as part of the Deed in Lieu Transaction (the “Grant Deed”); and

WHEREAS, as part of said Deed in Lieu Transaction, Lender has agreed to release the Released
Parties (as hereinafter defined) from certain claims and other liabilities, as more particularly
set forth herein.

NOW, THEREFORE, for Ten and No/100 Dollars ($10.00) and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

	 	1.	 	The recital set forth above are true and correct and are incorporated herein.

	 
	 	2.	 	All capitalized terms used herein and not otherwise defined herein shall have
the meaning ascribed to such term in the Deed of Trust. For the purposes of this
Release:

	 	a.	 	The term “Claims” shall mean, collectively, all debts, sums of
money, claims, rights, suits, demands, injuries, damages, compensation, actions or
causes of action, whatsoever, direct or indirect, known or unknown, foreseen or
unforeseen, in law, admiralty or equity which a party or its successors and
assigns, heirs, personal representatives and distributees ever had, now have or
hereafter can, shall or may have for, upon, or by reason of any matter, cause or
thing whatsoever from the beginning of the world to the day of the Effective Date
of this Release, arising out of, or in any way connected with or related to the
Loan, the Property and/or the Loan Documents, except for any and all
obligations of Borrower or Guarantor under the Loan Documents which are intended to
survive the satisfaction of the Loan or any other termination of the Loan
including, but not limited to such surviving obligations as set forth in (a)
Sections 3.03(b), 12.01, 16.02, and 18.39(j)(ii) of the Original Deed of Trust, (b)
the exclusions from the exculpation of Borrower liability set forth in Section
18.32 of the Original Deed of Trust, (c) that certain Payment Guaranty by Guarantor
in favor of Original Lender dated as of the 6th day of October, 2006, as amended by
that certain Confirmation of and Amendment to Payment Guaranty by and between
Guarantor and Lender having an effective date the same date as the Execution Date
of this Agreement, and (d) Section 6(a)(ii), Sections 6(b) through 6(f), inclusive,
and Sections 8, 11, 15 and 27 of the Deed of Trust Modification Agreement
(hereinafter collectively, the “Excluded Claims”). For avoidance of doubt,
in no event shall anything in this Release be a release of, or be deemed or
otherwise construed in any way to be a release of, any and all obligations
contained in that certain Guaranty by Morgans Group LLC, a Delaware limited liability company (“Morgans”), in favor of the
Original Lender, dated as of the 6th day of October, 2006, as amended by that
certain Confirmation of and Amendment to Guaranty by and between Morgans and Lender
having an effective date the same day as the Effective Date of this Agreement.

 

- 2 -

 

	 	3.	 	Lender, its loan participants, and its respective partners, principals,
officers, directors, managers, members, shareholders, employees, agents,
representatives, attorneys, consultants, contractors, predecessors, successors,
assigns, heirs, personal representatives, designees, transferees and distributees
(collectively, the “Lender Parties”) hereby release and discharge Borrower, and
Guarantor, their present and former members, managers, partners, employees, agents,
trustees, beneficiaries, successors, assigns and representatives (collectively, the
“Released Parties”) from any and all Lender’s Claims. Lender Parties expressly
reserve their rights to the Excluded Claims.

	 
	 	4.	 	By acceptance of this Release, Borrower and Guarantor confirm and ratify the
Excluded Claims and specifically agree that the Excluded Claims shall survive the
delivery of the Grant Deed by Borrower to Transferee (as defined in Section 5 below)
and the delivery of this Release by Lender to Borrower and Guarantor, and that Lender
reserves the right to sue (including, without limitation, the right to counterclaim
against) and obtain and satisfy a judgment against Borrower and Guarantor to the full
extent of any such Excluded Claims.

	 
	 	5.	 	Notwithstanding anything herein to the contrary, if a claim is made upon the
Lender, or any of the Lender Parties or any subsequent transferee from any of the
Lender Parties (collectively the “Transferee”), for repayment or recovery of
any amount(s) or property or its equivalent received by Transferee pursuant to the Deed
in Lieu Transaction and, if, resulting from such claim, the Transferee pays all or part
of said amount or redelivers property or its equivalent to the Released Parties or
anyone authorized by law to act on behalf of the Released Parties by reason of: (a) any
judgment, decree or order of any court or administrative body, or (b) any settlement or
compromise of any such claim effected by the Transferee, then, in any such event, the
Released Parties agree that any such judgment, decree, order, settlement or compromise
shall be binding upon them, and they shall be and remain liable to the Transferee for
the amount so repaid or recovered to the same extent as if such amount had never
originally been received by the Transferee. The provisions of this Section 5 shall
survive and continue in effect, notwithstanding any payment of any or all of the
amounts, or the transfer or release of any property pursuant to this Release. The
Transferee shall give Borrower and Guarantor notice of any such claim or settlement in
accordance with the provision hereof.

	 
	 	6.	 	If the Grant Deed or any other document evidencing a conveyance of the Property
to any Transferee is ever rendered void or is rescinded by operation of law, or if any
payment made to any Transferee is ever cancelled, invalidated, rescinded, required to
be disgorged, or otherwise set aside, whether: (a) by order of any state or federal
court of competent jurisdiction, (b) by reason of any order arising out of any claim or
proceeding initiated or commenced in favor of, against, on behalf of, or in concert
with, Borrower, Guarantor or any person claiming by or through Borrower or Guarantor,
or (c) by reason of any other occurrence, then this Release shall terminate and be of
no further force and effect and the obligations of Borrower and Guarantor under the
Loan Documents shall be reinstated as if this Release had never been granted. The
provisions of this Section 6 shall survive and continue in
effect, notwithstanding the delivery of the Grant Deed to any Transferee or any payment of any
or all of the amounts, or the transfer or release of any property pursuant to this
Release.

 

- 3 -

 

	 	7.	 	The Released Parties hereby agree that if they or any corporation or
partnership in which they hold an interest shall (i) file or be the subject of any
petition under Title 11 of the United States Code as same may be amended from time to
time (the “Bankruptcy Code”), (ii) be the subject of any order for relief
issued under the Bankruptcy Code, (iii) file or be the subject of any petition seeking
any reorganization, arrangement, composition, readjustment, liquidation, dissolution,
or similar relief under any present or future federal or state act or law relating to
bankruptcy, insolvency, or other relief for debtors (an “Insolvency
Proceeding”), (iv) seek, consent to or acquiesce in the appointment of any trustee,
receiver, conservator or liquidator, or (v) be the subject of any order, judgment or
decree entered by any court of competent jurisdiction approving a petition filed
against any of the Released Parties in any Insolvency Proceeding, then Lender shall
thereupon be entitled to relief from any automatic stay imposed by §362 of the
Bankruptcy Code, or from any other stay or suspension of remedies imposed in any other
manner with respect to the exercise of the rights and remedies otherwise available to
Lender relating to this Release or the Loan Documents.

	 
	 	8.	 	In the event any of the Released Parties commence, or another party commences
against them, within three hundred and sixty six (366) days of the Effective Date of
this Release, any case, proceeding, or other action under any law relating to
bankruptcy, insolvency, reorganization or relief of debtors, (a) seeking to have any
order for relief of the Released Parties or their debts, or seeking to adjudicate any
of the Released Parties as bankrupt or insolvent, or (b) seeking appointment of a
receiver, trustee, custodian or other similar official for any of the Released Parties
or for all or any substantial part of any of the Released Parties’ assets, each of the
Released Parties agree that their obligations under this Release may not be avoided
pursuant to 11 U.S.C. Section 547 or 548, and that none of the Released Parties will
argue or otherwise take the position in any such case, proceeding or action that any or
all of: (i) the Released Parties’ obligations under this Release may be avoided under
11 U.S.C. Section 547 or 548; (ii) the Released Parties were insolvent at the time this
Release was entered into, or became insolvent as a result of payments made to Lender in
connection with the Loan, the Loan Documents and/or the delivery of the Grant Deed to
the Transferee; or (iii) the promises, covenants and obligations set forth in this
Release do not constitute a contemporaneous exchange for new value given to the Lender.

	 
	 	9.	 	In the event that Borrower’s or any of Guarantor’s obligations hereunder are
avoided for any reason, including, but not limited to, the exercise of a trustee’s
avoidance powers under the Bankruptcy Code, Lender, at its sole option, may rescind the
releases in this Release, and bring any civil and/or administrative claim, action or
proceeding against the Released Parties for the claims that would otherwise be covered
by the releases provided in this Release. If Lender chooses to do so, Borrower and
Guarantor agree that (i) any such claims, actions or proceedings brought by the Lender
(including any proceedings to enforce and collect any judgment) are not subject to an
“automatic stay” pursuant to 11 U.S.C. Section 362(a) as a result of the action, case
or proceeding described in the first clause of this Section 9, and that Borrower and
Guarantor will not argue or otherwise contend that the Lender’s claims, actions or
proceedings are subject to an automatic stay; (ii) that Borrower and Guarantor will not
plead, argue or otherwise raise any defenses under the theories of statute of
limitations, laches, estoppel or similar theories, to any such civil or administrative
claims, actions or proceedings which are brought by the Lender within 30 calendar days
of written notification to Borrower that the releases herein have been rescinded
pursuant to this Section 9; and (iii) Lender may pursue its Claims. The agreements in this Section 9 are provided in exchange
for valuable consideration provided in this Release.

 

- 4 -

 

	 	10.	 	If at any time any voluntary or involuntary insolvency, bankruptcy,
reorganization or similar proceeding under any state or federal law regarding
creditors’ rights or debtors’ obligations is instituted by or against Borrower or any
Guarantor, and this Release or any document or instrument executed and delivered
pursuant to this Release, or any representation, warranty, covenant or agreement of
Borrower or any Guarantor contained in any of the foregoing, or any payment made to
Lender or its designee, nominee or assignee is rescinded, cancelled, invalidated,
required to be disgorged, or otherwise set aside, then this Release, and all documents
and instruments that have been executed and delivered pursuant to this Release, and all
representations, warranties, covenants and obligations of Lender shall be terminated,
rejected, cancelled, invalidated, released, set aside and of no further force or
effect, and Lender shall have all of the rights and remedies available to it at law or
in equity, including, without limitation, all of the rights and remedies provided for
in the Loan Documents, including the right to collect the full amount of indebtedness
due under the Loan Documents in accordance with their terms.

	 
	 	11.	 	Notwithstanding anything herein to the contrary, the obligations of Borrower
and Guarantor under the Loan Documents which are intended to survive the payoff of the
Loan shall survive the delivery of the Grant Deed and the closing of the Deed in Lieu
Transaction.

	 
	 	12.	 	This Release may not be changed, amended or modified in any manner other than
by agreement in writing specifically referring to this Release and executed by Lender,
Borrower and Guarantor.

	 
	 	13.	 	If any provision of this Release or the application thereof to any person or
entity or circumstance shall, at any time or to any extent, be invalid or
unenforceable, the remainder of this Release, and the application of such provision to
persons or entities or circumstances other than those to which it is held invalid or
unenforceable, shall not be affected thereby, and each provision of this Release shall
be valid and shall be enforced to the fullest extent permitted by law.

	 
	 	14.	 	Each of the parties hereto agrees that, without receiving further
consideration, they will sign and deliver such documents and do anything else that is
necessary in the future to make the provisions of this Release effective.

	 
	 	15.	 	The provisions of this Release shall bind and inure to the benefit of the
parties hereto and their respective successors and assigns, heirs, personal
representatives and distributees.

	 
	 	16.	 	This Release shall be construed without regard to any rule or presumption
requiring construction against the party causing the same to be drafted.

	 
	 	17.	 	This Release shall be governed by and construed in accordance with the laws of
the State of California, without giving effect to its choice of law rules.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

 

- 5 -

 

IN WITNESS WHEREOF, the undersigned has caused this Release to be executed under seal and
shall be effective as of the Effective Date.

LENDER:

BANK OF AMERICA, NATIONAL ASSOCIATION, AS SUCCESSOR BY MERGER TO LASALLE BANK
NATIONAL ASSOCIATION, AS TRUSTEE FOR THE BENEFIT OF THE HOLDERS OF WACHOVIA BANK
COMMERCIAL MORTGAGE TRUST, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2007-WHALE 8

	 	 	 	 	 
	 	
By and through CWCapital Asset Management LLC, solely in its capacity as Special Servicer for the Holder
 
	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

- 6 -

 

EXHIBIT E

ESTOPPEL

 

 

 

			
	 	 	 
	Escrow No.: 160300830
	 	Order No.: 106746729-x59

ESTOPPEL AFFIDAVIT

Re: Deed in Lieu of Foreclosure or Forfeiture

State of New York,

County of New York,

MONDRIAN HOLDINGS LLC, a Delaware limited liability company (the “Affiant”), being first
duly and separately sworn, deposes and says:

That the Affiant is the owner and holder of the fee simple title to the real property described on
Exhibit A attached hereto and made a part hereof (the “Land”).

That the Affiant made, executed and delivered the following deed of trust (collectively, the
“Mortgage”) existing on the Land:

That certain Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing by
Affiant, as Borrower, and First American Title Insurance Company, as Trustee for the benefit
of Wachovia Bank, National Association (the “Original Lender”), as Lender, dated as
of October 6, 2006, and recorded in the Office of the County Recorder of the County of Los
Angeles, State of California (the “Office”) on October 25, 2006, as Instrument No.
06-2368097, as assigned by the Original Lender to LaSalle Bank National Association, as
Trustee for the Benefit of the Holders of Wachovia Bank Commercial Mortgage Pass-Through
Certificates, Series 2007 — Whale 8, as more particularly set forth in that certain
Assignment recorded on December 31, 2007, in the Official Records as Instrument No.
20072857366, and as restated and modified by that certain Restatement and Modification of
Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing dated as of the
date of this Grant Deed by Affiant and BANK OF AMERICA, NATIONAL ASSOCIATION, AS SUCCESSOR BY
MERGER TO LASALLE BANK NATIONAL ASSOCIATION, as Trustee for the Benefit of the Holders of
Wachovia Bank Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates,
Series 2007-WHALE 8, (the “Lender”), to be recorded in the Office.

That the Affiant is the identical party who, simultaneously herewith, made, executed and delivered
that certain Grant Deed (the “Deed and Conveyance”) to the following (the
“Grantee”):

Grantee        
                    
                    
             

Dated       
                    
                    
              ,

which Deed and Conveyance is to be recorded in the Official Records of Los Angeles County,
California, conveying the Land to said Grantee.

That the Deed and Conveyance is an absolute conveyance of the title to the Land to the Grantee in
effect as well as form, and was not and is not now intended as a mortgage, trust conveyance, or
security of any kind, and that possession of the Land has been surrendered to the said Grantee;

That the consideration in the Deed and Conveyance is that Grantee has agreed not to pursue title to
the Land by filing and prosecuting a foreclosure of the Mortgage;

That the delivery of the Deed and Conveyance will not result in the cancellation of the debts,
obligations, costs and charges heretofore existing under and by virtue of the terms of the Mortgage
(and of any notes, agreements or other security instruments in connection therewith);

That the Deed and Conveyance is made by the Affiant as the result of its request that the Grantee
accept such Deed and Conveyance;

That the Deed and Conveyance is the free and voluntary act of the Affiant;

			
	 	 	 
	Estoppel Affidavit — Deed in Lieu without Debt Cancellation (estoppelwo) (06-09) (Rev. 08-09)
	 	PAGE 1 OF 3

 

 

 

			
	 	 	 
	Escrow No.: 160300830
	 	Order No.: 106746729-x59

That at the time the Deed and Conveyance is delivered to the Grantee, the Affiant feels that the
Mortgage and indebtedness secured thereby is equal to or exceeds the fair value of the Land;

That the Deed and Conveyance is not given as a preference against any other creditors of the
Affiant;

That at the time the Deed and Conveyance is delivered to Grantee there are no other person or
persons, firms, corporations or partnerships other than the Affiant interested, either directly or
indirectly, in the Land;

That the Affiant is solvent and has no other creditors whose rights would be prejudiced by the Deed
and Conveyance;

That, other than for the Mortgage, the Affiant is not obligated upon any bond or other mortgage
whereby any lien has been created or exists against the Land;

That the Affiant, in offering to execute and deliver the Deed and Conveyance to the Grantee, and in
executing and delivering the same, is not acting under any misapprehension as to the effect
thereof, nor under any duress, undue influence, or misrepresentation by the Grantee or any agent or
attorney of the Grantee; and

That it is the intention of the Affiant, as Grantor in the Deed and Conveyance, to convey, and by
the Deed and Conveyance the Affiant did convey, to the Grantee all of its/their right, title and
interest absolutely in and to the Land.

This affidavit is made for the protection and benefit of the Grantee, its successors and assigns,
and all other parties hereinafter dealing with or who may acquire an interest in the Land, and
particularly for the benefit of Chicago Title Insurance Company, which has been requested to insure
the title to the Land in reliance thereon, and this affidavit shall bind the respective heirs,
executors, administrators, personal representatives and assigns of the Affiant.

DATED as of this
 _____ day of                  
                  
     , 20_____.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

			
	 	 	 
	Estoppel Affidavit — Deed in Lieu without Debt Cancellation (estoppelwo)
	 	PAGE 2 OF 3

 

 

 

			
	 	 	 
	Escrow No.: 160300830
	 	Order No.: 106746729-x59

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MONDRIAN HOLDINGS LLC, a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Mondrian Senior Mezz LLC, a Delaware limited liability company, its sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a Delaware corporation, its managing member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Title:	 	 	 	 

State of New York

County of New York

Subscribed and sworn to (or affirmed) before me on this
 _____ 
day of                  
                  
     , 20 _____,
by                
                 
                 
                 
                   
               , proved to me
on the basis of satisfactory evidence to be the person(s) who appeared before me.

Signature        
                   
                  
                   
                  (Seal)

			
	 	 	 
	Estoppel Affidavit — Deed in Lieu without Debt Cancellation (estoppelwo) (06-09) (Rev. 08-09)
	 	PAGE 3 OF 3

 

 

 

EXHIBIT “A”

LEGAL DESCRIPTION OF LAND

Lot “A” of Tract 2527, in the city of West Hollywood, county of Los Angeles, state of California,
as per map recorded in Book 34 Page 14 of Maps, in the office of the county recorder of said
county.

EXCEPT therefrom that portion thereof lying Southerly of a line bearing North 89 degrees 54’ West
from a point on the East line of said Lot, distant North 0 degrees 06’ East thereon 320 feet from
the Southeast corner of said Lot.

 

 

 

EXHIBIT F

CERTIFICATION

 

 

 

 CERTIFICATION OF NON-FOREIGN STATUS

Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property
interest must withhold tax if the transferor is a foreign person. To inform         
                  
                   
                   
                
(“Transferee”)
that withholding of tax is not required upon the disposition (whether by sale, foreclosure,
deed-in-lieu of foreclosure, or otherwise) of a U.S. real property interest by MONDRIAN HOLDINGS
LLC, a Delaware limited liability company (“Transferor”), Transferor hereby swears, affirms
and certifies the following to Transferee:

	 	1.	 	Transferor is not a foreign corporation, foreign partnership,
foreign trust, or foreign estate (as those terms are defined in the Internal
Revenue Code and Income Tax Regulations).

	 
	 	2.	 	Transferor’s U.S. employer identification number is 13-3988156.

	 
	 	3.	 	Transferor’s office address is:

	 
	 	 	 	MONDRIAN HOLDINGS LLC

c/o Morgans Hotel Group
475 Tenth Avenue

New York, New York 10018

	 
	 	4.	 	Transferor understands that this certification may be disclosed
to the Internal Revenue Service by Transferee and that any false statement
contained herein could be punished by fine, imprisonment, or both.

	 
	 	5.	 	Transferor understands that Transferee is relying on this
certification in determining whether withholding is required upon said transfer

Under penalties of perjury, the undersigned declares that he/she has examined this
certification and to the best of his/her knowledge and belief it is true, correct and complete, and
he/she further declares that he/she has the authority to sign this document on behalf of
Transferor.

[Signature Page Follows on Subsequent Page]

 

 

 

Executed
as of the                      day of                                         , 20_____.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONDRIAN HOLDINGS LLC, a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Mondrian Senior Mezz LLC, a
Delaware limited liability company, its sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By: Morgans Group LLC, a Delaware limited liability company,
its sole member
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: Morgans Hotel Group Co., a Delaware corporation,
its managing member
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 

 

 

 

EXHIBIT G

PARTIAL RELEASE BY LENDER

 

 

 

RELEASE AGREEMENT

RELEASE OF LENDER

THIS RELEASE AGREEMENT (the “Release”) is executed as of the
 _____ 
day of
                                        , 20_____ 
(the “Effective Date”), by MONDRIAN HOLDINGS LLC, a Delaware
limited liability company (the “Borrower”), MORGANS GROUP LLC, a Delaware limited liability
company (“Morgans”), MONDRIAN PLEDGOR LLC, a Delaware limited liability company (the
“Mondrian Pledgor”), and 8440 LLC, a Delaware limited liability company (“8440”,
and together with Morgans and Mondrian Pledgor, the “Guarantor”), each of the foregoing
having an address at c/o Morgans Hotel Group, 475 Tenth Avenue, New York, New York 10018, for the
benefit of BANK OF AMERICA, NATIONAL ASSOCIATION, AS SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL
ASSOCIATION, AS TRUSTEE FOR THE BENEFIT OF THE HOLDERS OF WACHOVIA BANK COMMERCIAL MORTGAGE TRUST,
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-WHALE 8 (“Lender”), having a
place of business at 540 West Madison Street, Mail Code IL4-540-18-04, Chicago, Illinois 60661.

RECITALS:

WHEREAS, Lender is the holder of (i) that certain Promissory Note A-1 in the amount of
$60,250,000.00, dated as October 6, 2006, by Borrower in favor of Lender’s predecessor in interest,
Wachovia Bank, National Association (“Original Lender”), as modified by the A-1 Note
Modification Agreement dated as of the Execution Date (the “A-1 Note Modification
Agreement”) between Borrower and Lender (as modified, “Note A-1”) and (ii) that certain
Promissory Note A-2 dated as of October 6, 2006, between Borrower and Original Lender in the amount
of $60,250,000.00, as modified by the A-2 Note Modification Agreement dated as of the Execution
Date (the “A-2 Note Modification Agreement”) between Borrower and Lender (as modified,
“Note A-2”, together with Note A-1 hereinafter collectively, the “Note”); and

WHEREAS, the Note is secured by (i) that certain Deed of Trust, Security Agreement, Assignment
of Rents and Fixture Filing dated as of October 6, 2006, by Borrower in favor of First American
Title Insurance Company, as Trustee for the benefit of the Original Lender, recorded in the Office
of the County Recorder of the County of Los Angeles, State of California (the “Official
Records”), on October 25, 2006, as Instrument No. 06-2368097 (the “Original Deed of
Trust”), which Original Deed of Trust was agreed to and consented to by Morgans, Mondrian
Pledgor and 8440; and

WHEREAS, (i) the Note was assigned by Original Lender to Lasalle Bank National Association, as
Trustee for the Benefit of the Holders of Wachovia Bank Commercial Mortgage Trust, Commercial
Mortgage Pass-Through Certificates, Series 2007-WHALE 8 (“Lasalle”), and (ii) the
beneficial interest in the Deed of Trust was assigned by Original Lender to Lasalle, as more
particularly set forth in that certain Assignment of Deed of Trust, Security Agreement, Assignment
of Rents and Fixture Filing and Assignment of Assignment of Leases and Rents
  effective as of June 27, 2007, by Original Lender in favor of Lasalle, recorded in the
Official Records on December 31, 2007, as Instrument No. 20072857366; and

 

 

 

WHEREAS, by virtue of a merger effective as of October 17, 2008, Bank of America, National
Association, is successor by merger to LaSalle; and

WHEREAS, Lender has agreed to enter into (a) the A-1 Note Modification Agreement, (b) the A-2
Note Modification Agreement, and (c) that certain Restatement and Modification of Deed of Trust,
Security Agreement, Assignment of Rents and Fixture Filing by and between Borrower and Lender dated
as of the Effective Date amending the Original Deed of Trust (the “Deed of Trust Modification
Agreement,” and together with the Original Deed of Trust, the “Deed of Trust”), to be
recorded in the Official Records, which A-1 Note Modification Agreement, A-2 Note Modification
Agreement and Deed of Trust Modification Agreement have been agreed to and consented to by Morgans,
Mondrian Pledgor and 8440; and

WHEREAS, as of the Effective Date, Borrower is in default under the terms of the Note and Deed
of Trust; and

WHEREAS, by virtue of Borrower being in default under the Note and Deed of Trust, Borrower,
Lender and Guarantor have agreed to enter into a deed in lieu of foreclosure transaction (the “Deed
in Lieu Transaction”) to convey the Property (as defined in the Deed of Trust) in lieu of Lender
filing a foreclosure action or pursuing other remedies available to Lender; and

WHEREAS, effective as of the Effective Date, Borrower has delivered to Lender a Grant Deed
conveying fee simple title to the Real Property (as defined in the Deed of Trust) to a designee of
Lender as part of the Deed in Lieu Transaction (the “Grant Deed”); and

WHEREAS, as part of said Deed in Lieu Transaction, Borrower and Guarantor have agreed to
release the Lender Parties (as hereinafter defined) from certain claims and other liabilities, as
more particularly set forth herein.

NOW, THEREFORE, for Ten and No/100 Dollars ($10.00) and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

	 	1.	 	The recital set forth above are true and correct and are incorporated herein.

	 
	 	2.	 	All capitalized terms used herein and not otherwise defined herein shall have
the meaning ascribed to such term in the Deed of Trust. For the purposes of this
Release:

	 	a.	 	The term “Claims” shall mean, collectively, all actions, causes
of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills,
specialties, covenants, contracts, controversies, agreements, promises, variances,
trespasses, damages, judgments, extents, executions, claims and demands whatsoever,
direct or indirect, known or unknown, foreseen or unforeseen, in law, admiralty or
equity which a party or its successors and assigns, heirs, personal representatives
and distributees ever had, now have or hereafter can, shall or may have for, upon,
or by reason of any matter, cause or thing whatsoever from the beginning of the
world to the day of the Effective Date of this Release, arising out
of, or in any way connected with or related to the Loan, the Property and/or the Loan Documents.

 

- 2- 

 

	 	3.	 	Borrower and Guarantor, their present and former members, managers, partners,
principals, officers, shareholders, directors, employees, agents, trustees,
beneficiaries, successors, assigns and representatives (collectively, the “Borrower
Parties”) hereby release and discharge Lender, the grantee under the Grant Deed,
Lender’s affiliates and their respective loan participants, and their respective
partners, principals, officers, directors, managers, members, shareholders, employees,
agents, servicers, representatives, attorneys, consultants, contractors, predecessors,
successors, assigns, heirs, personal representatives and distributees (collectively,
the “Lender Parties”) from any and all Claims.

	 
	 	4.	 	Notwithstanding anything herein to the contrary, if a Claim is made upon
Lender, the grantee under the Grant Deed, any of the Lender Parties or any subsequent
transferee from Lender (collectively the “Transferee”), for repayment or
recovery of any amount(s) or property or its equivalent received by the Transferee
pursuant to the Deed in Lieu Transaction and, if, resulting from such Claim, the
Transferee pays all or part of said amount or redelivers property or its equivalent to
anyone authorized by law to act on behalf of the Borrower Parties by reason of: (a) any
judgment, decree or order of any court or administrative body, or (b) any settlement or
compromise of any such Claim effected by the Transferee, then, in any such event, the
Borrower Parties agree that any such judgment, decree, order, settlement or compromise
shall be binding upon them, and they shall be and remain liable to the Transferee for
the amount so repaid or recovered to the same extent as if such amount had never
originally been received by the Transferee. The provisions of this Section 4 shall
survive and continue in effect, notwithstanding any payment of any or all of the
amounts, or the transfer or release of any property pursuant to this Release. The
Transferee shall give Borrower and Guarantor notice of any such Claim or settlement in
accordance with the provision hereof.

	 
	 	5.	 	The Borrower Parties hereby agree that if they or any corporation or
partnership in which they hold an interest shall (i) file or be the subject of any
petition under Title 11 of the United States Code as same may be amended from time to
time (the “Bankruptcy Code”), (ii) be the subject of any order for relief
issued under the Bankruptcy Code, (iii) file or be the subject of any petition seeking
any reorganization, arrangement, composition, readjustment, liquidation, dissolution,
or similar relief under any present or future federal or state act or law relating to
bankruptcy, insolvency, or other relief for debtors (an “Insolvency
Proceeding”), (iv) seek, consent to or acquiesce in the appointment of any trustee,
receiver, conservator or liquidator, or (v) be the subject of any order, judgment or
decree entered by any court of competent jurisdiction approving a petition filed
against any of the Borrower Parties in any Insolvency Proceeding, then Lender shall
thereupon be entitled to relief from any automatic stay imposed by §362 of the
Bankruptcy Code, or from any other stay or suspension of remedies imposed in any other
manner with respect to the exercise of the rights and remedies otherwise available to
Lender relating to this Release or the Loan Documents.

 

- 3- 

 

	 	6.	 	In the event any of the Borrower Parties commence, or another party commences
against them, within 91 days of the Effective Date of this Release, any case,
proceeding, or other action under any law relating to bankruptcy, insolvency,
reorganization or relief of debtors, (a) seeking to have any order for relief of the
Borrower Parties or their debts, or seeking to adjudicate any of the Borrower Parties
as bankrupt or insolvent, or (b) seeking appointment of a receiver, trustee, custodian
or other similar official for any of the Borrower Parties or for all or any substantial
part of any of the Borrower Parties’ assets, each of the Borrower Parties agree that
their obligations under this Release may not be avoided pursuant to 11 U.S.C. Section
547 or 548, and that none of the Borrower Parties will argue or otherwise take the
position in any such case, proceeding or action that any or all of: (i) the Borrower
Parties’ obligations under this Release may be avoided under 11 U.S.C. Section 547 or
548; (ii) the Borrower Parties were insolvent at the time this Release was entered
into, or became insolvent as a result of the delivery of the Grant Deed to Lender
and/or payments made to Lender in connection with the Loan and Loan Documents; or (iii)
the promises, covenants and obligations set forth in this Release do not constitute a
contemporaneous exchange for new value given to the Lender.

	 
	 	7.	 	The Borrower Parties agree to not take any action to assert any Claims against
any of the Lender Parties, whether by claim or cause of action, offset, counterclaim or
defense, or any other action of any kind whatsoever.

	 
	 	8.	 	This Release may not be changed, amended or modified in any manner other than
by agreement in writing specifically referring to this Release and executed by Lender,
Borrower and Guarantor.

	 
	 	9.	 	This Release shall be absolute, irrevocable and unconditional in all respects
and shall not be affected, modified, diminished or impaired or be subject to any
limitation, impairment, claim, counterclaim, termination or defense whatsoever for any
reason, including, without limitation, by reason of changes of law or newly discovered
facts.

	 
	 	10.	 	If any provision of this Release or the application thereof to any person or
entity or circumstance shall, at any time or to any extent, be invalid or
unenforceable, the remainder of this Release, and the application of such provision to
persons or entities or circumstances other than those to which it is held invalid or
unenforceable, shall not be affected thereby, and each provision of this Release shall
be valid and shall be enforced to the fullest extent permitted by law.

	 
	 	11.	 	Each of the parties hereto agrees that, without receiving further
consideration, they will sign and deliver such documents and do anything else that is
necessary in the future to make the provisions of this Release effective.

	 
	 	12.	 	The provisions of this Release shall bind and inure to the benefit of the
parties hereto and their respective successors and assigns, heirs, personal
representatives and distributees.

 

- 4- 

 

	 	13.	 	This Release shall be construed without regard to any rule or presumption
requiring construction against the party causing the same to be drafted.

	 
	 	14.	 	This Release shall be governed by and construed in accordance with the laws of
the State of California, without giving effect to its choice of law rules.

	 
	 	15.	 	This Release may be executed in one or more counterparts, each of which shall
be deemed an original, and all of which, when taken together, shall constitute one and
the same instrument.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

- 5- 

 

IN WITNESS WHEREOF, the undersigned have caused this Release to be executed under seal and
shall be effective as of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONDRIAN HOLDINGS LLC, a Delaware limited liability company  
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Mondrian Senior Mezz LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a Delaware corporation, its managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	 	 	Title:	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	MORGANS:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	MORGANS GROUP LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Morgans Hotel Group Co., a Delaware corporation, its managing member
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 

 

- 6- 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONDRIAN PLEDGOR:  
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MONDRIAN PLEDGOR LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Mondrian Senior Mezz LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a Delaware corporation, its managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	 	 	Title:	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	8440:
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	8440 LLC, a Delaware limited liability company  
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Mondrian Pledgor LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Mondrian Senior Mezz LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a Delaware corporation, its managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Title:

 

- 7-Exhibit 10.12

Exhibit 10.12

MODIFICATION TO PROMISSORY NOTE A-1

THIS MODIFICATION TO PROMISSORY NOTE A-1 (this “Agreement”) is executed as of
September 30, 2010 (the “Execution Date”), but effective for all purposes as of July 11,
2010 (the “Effective Date”), by and between by and between HENRY HUDSON HOLDINGS
LLC, a Delaware limited liability company (“Borrower”), whose address is c/o Morgans Hotel
Group, 475 Tenth Avenue, New York, New York 10018, and BANK OF AMERICA, NATIONAL ASSOCIATION, AS
SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE BENEFIT OF THE HOLDERS
OF WACHOVIA BANK COMMERCIAL MORTGAGE TRUST, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2007-WHALE 8 (“Lender”), having a place of business at 540 West Madison Street, Mail Code
IL4-540-18-04, Chicago, Illinois 60661.

WITNESSETH

A. R.1 Wachovia Bank, National Association (“Original Lender”) made a loan (the
“Loan”) to Borrower in the amount of $217,000,000.00, which Loan is evidenced by that
certain Promissory Note A-1 (representing $108,500,000.00 of the total Debt) (“Note A-1”),
a copy of which is attached hereto as Schedule A, and that certain Promissory Note A-2
(representing $108,500,000.00 of the total Debt) (“Note A-2”, as modified by a Modification
to Promissory Note A-2, dated as of the date hereof, together with Note A-1, as modified by this
Agreement, hereinafter collectively, the “Note”), each dated as of October 6, 2006, between
Borrower and Original Lender.

R.2 On June 27, 2007, Note A-1 was assigned by Original Lender to LaSalle Bank National
Association, as Trustee for the Benefit of the Holders of Wachovia Bank Commercial Mortgage Trust,
Commercial Mortgage Pass Through Certificates, Series 2007-WHALE 8 (“LaSalle”).

R.3 By virtue of a merger effective as of October 17, 2008, Bank of America, National
Association, is successor by merger to LaSalle Bank National Association.

R.4 Borrower has requested, and Lender has agreed, subject to the terms of this Agreement, to
modify certain terms and provisions of Note A-1, as more particularly set forth herein.

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Borrower and Lender hereby agree as
follows:

1. The recitals set forth above are true and correct in every respect and are incorporated
herein by reference.

2. Capitalized terms used herein but not defined shall have the meanings ascribed to them in
Note A-1.

 

 

 

3. Note A-1 is hereby modified by deleting clause (i) in Section 2.1(e) thereof and replacing
it with the following:

“(i) Lender has received written notice not more than one hundred and twenty (120) days prior
to the Maturity Date and not more than ninety (90) days after the Maturity Date that Borrower
desires to extend the Maturity Date (the “Maturity Date Notice”) which shall be accompanied
by a payment of $100,000.00,”

4. Note A-1 is hereby modified by deleting the defined term LIBOR MARGIN and replacing it with
the following:

““LIBOR Margin” shall mean 103.16197135 basis points per annum.”

5. Notwithstanding the provisions of Section 2.1(e) of Note A-1, as a condition to entering
into this Agreement and as a condition to extending the Maturity Date of the Loan pursuant to
Section 2.1(e) of Note A-1, Borrower has delivered, or shall deliver prior to execution hereof, (a)
either an extension of the existing Rate Cap Agreement (the “Cap Agreement Extension”) or a
replacement Rate Cap Agreement (the “Replacement Cap Agreement”) with a LIBOR Rate strike
price of equal to or less than 5.33% per annum and a term expiring no earlier than the Extended
Maturity Date, and in either case issued by a cap provider with a long-term unsecured debt rating
or counterparty rating of at least “A+” (or its equivalent) by each Rating Agency, which Lender
hereby agrees shall satisfy the requirements regarding the Rate Cap Agreement pursuant to Section
2.1(e) of Note A-1, together with (b) either a modification of that certain Collateral Assignment
of Interest Rate Hedge Agreement dated as of October 6, 2006, by Borrower in favor of Original
Lender (the “Existing Hedge Agreement Collateral Assignment”) referencing the Cap Agreement
Extension, if Borrower delivers to Lender the Cap Agreement Extension, or a new Collateral
Assignment of Interest Rate Hedge Agreement collaterally assigning to Lender the Replacement Cap
Agreement in a form and content substantially similar to the Existing Hedge Agreement Collateral
Assignment, if Borrower delivers to Lender the Replacement Cap Agreement.

6. Borrower and Lender hereby acknowledge and agree that (a) this Agreement shall serve as
Borrower’s Maturity Date Notice to extend the Maturity Date of the Loan to the Extended Maturity
Date, (b) Borrower is herewith delivering to Lender the requisite Extension Fee in the amount of
0.25% of the outstanding balance of Note A-1, and (c) the requirement of Borrower to deliver
$100,000 to Lender at the time of the Delivery of the Maturity Date Notice is waived and such
amount shall not be due by Borrower. Lender hereby accepts such Maturity Date Notice and, subject
to Borrower’s satisfaction of Section 5 of this Agreement, confirms that all other conditions to
such extension have been satisfied in accordance with the terms of Section 2.1 of Note A-1 and, as
such, Borrower and Lender hereby agree that October 15, 2011 shall for all intents and purposes be
the Extended Maturity Date of the Loan. Borrower and Lender further agree that Borrower is not
entitled to any further extensions of the Maturity Date or the Extended Maturity Date, and that,
notwithstanding anything else in the Loan Documents to the contrary, the Note shall be due and
payable in full on the Extended Maturity Date of October 15, 2011.

 

2

 

7. Except as expressly provided herein, the execution of this Agreement by Lender does not and
shall not constitute a waiver of any rights or remedies to which Lender is
 entitled pursuant to the Loan Documents, nor shall the same constitute a waiver of any default
or Event of Default which may have heretofore occurred or which may hereafter occur with respect to
the Loan Documents. Lender reserves the right to declare any existing default or Event of Default
which subsequently comes to the attention of Lender whether pertaining to a period prior to the
Effective Date or on or after the Effective Date.

8. This Agreement may be executed in any number of counterparts with the same effect as if all
parties hereto had signed the same document. All such counterparts shall be construed together and
shall constitute one instrument, but in making proof hereof it shall only be necessary to produce
one such counterpart.

9. This Agreement was negotiated, executed and delivered in the State of New York, and made by
Lender and accepted by Borrower in the State of New York, and the proceeds of the Note were
disbursed from the State of New York, which state the parties agree has a substantial relationship
to the parties and to the underlying transactions embodied hereby, and in all respects, including,
without limiting the generality of the foregoing, matters of construction, validity and
performance, this Agreement and the obligations arising hereunder shall be governed by, and
construed in accordance with, the laws of the State of New York applicable to contracts made and
performed in such state (without regard to principles of conflict of laws) and any applicable law
of the United States of America, except that at all times the provisions for the creation,
perfection, and enforcement of the liens and security interests created pursuant hereto and
pursuant to the other Loan Documents shall be governed by and construed according to the law of the
state in which the property encumbered by the Security Instrument is located, it being understood
that, to the fullest extent permitted by the law of such state, the law of the State of New York
shall govern the construction, validity and enforceability of all loan documents and all of the
obligations arising hereunder or thereunder. To the fullest extent permitted by law, Borrower
hereby unconditionally and irrevocably waives any claim to assert that the law of any other
jurisdiction governs this Agreement and the Note and the other Loan Documents, and this Agreement,
the Note and the other Loan Documents, shall be governed by and construed in accordance with the
laws of the State of New York.

10. Any legal suit, action, or proceeding against Lender or Borrower arising out of or
relating to this Agreement may at Lender’s option be instituted in any Federal or State Court in
the City of New York, County of New York, and Borrower waives any objections which it may now or
hereafter have based on venue and/or forum non conveniens of any such suit, action or proceeding,
and Borrower hereby irrevocably submits to the jurisdiction of any such court in any suit, action
or proceeding. Borrower does hereby designate and appoint CT Corporation System, as its authorized
agent to accept and acknowledge on its behalf service of any and all process which may be served in
any such suit, action, or proceeding in any Federal or State Court in New York, New York, and
agrees that service of process upon said agent at said address and written notice of said service
mailed or delivered to Borrower in the manner provided herein shall be deemed in every respect
effective service of process upon Borrower, in any such suit, action or proceeding in the State of
New York. Borrower (i) shall give prompt notice to Lender of any changed address of its authorized
agent hereunder, (ii) may at any time and from time to time upon not less than ten (10) days prior
written notice to Lender designate a substitute authorized agent with an office in New York, New
York (which substitute agent and office shall be designated as the person and address for service
of process), and (iii) shall
 promptly designate such a substitute if its authorized agent ceases to have an office in New
York, New York, or is dissolved without leaving a successor.

 

3

 

11. Within this Agreement, words of any gender shall be held and construed to include any
other gender, and words in the singular number shall be held and construed to include the plural,
unless the context otherwise requires. The section headings used herein are intended for reference
purposes only and shall not be considered in the interpretation of the terms and conditions hereof.
The parties acknowledge that the parties and their counsel have reviewed and revised this
Agreement and that the normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation of this Agreement
or any exhibits or amendments hereto.

12. The terms and conditions of this Agreement may not be modified, altered or otherwise
amended except by an instrument in writing executed by all of Lender and Borrower.

13. This Agreement and the instruments, documents and agreements referenced in this Agreement
contain the entire Agreement between the parties hereto with respect to the modification of the
Loan and fully supersede all prior agreements and understanding between the parties pertaining to
such subject matter.

14. The terms and conditions of this Agreement shall be binding upon and shall inure to the
benefit of the parties hereto, their successors and permitted assigns.

15. This Agreement represents the final agreement among the parties and may not be
contradicted by the parties. There are no unwritten oral agreements among the parties.

16. Each party to this Agreement agrees that any suit, action, or proceeding brought or
instituted by any party hereto on or with respect to this Agreement or any of the other Loan
Documents or which in any way relates directly or indirectly to the obligations under this
Agreement or the other Loan Documents or any event, transaction or occurrence arising out of or in
any way connected therewith, or the dealings of the parties with respect thereto, shall be tried
only by a court and not a jury. Each party hereby expressly waives any right to a trial by jury in
any such suit, action, or proceeding. Borrower acknowledges and agrees that this provision is a
specific and material aspect of this Agreement between the parties hereto, and that Lender would
not agree to the Agreements set forth herein if this waiver of jury trial provision were not a part
of this Agreement.

17. Nothing contained in this Agreement or the other Loan Documents constitutes or shall be
construed as the formation of a partnership, joint venture, tenancy-in-common, or any other form of
co-ownership, between Lender and Borrower or any other person or entity or the creation of any
confidential or fiduciary relationship of any kind between Lender and Borrower or any other person
or entity. Borrower acknowledges and agrees that Lender has at all times acted and shall at all
times continue to be acting only as a lender to Borrower within the normal and usual scope of
activities of a lender.

 

4

 

18. If any clause or provision of this Agreement is determined to be illegal, invalid or
unenforceable under any present or future law by the final judgment of a court of
 competent jurisdiction, the remainder of this Agreement will not be affected thereby. It is
the intention of the parties that if any such provision is held to be illegal, invalid or
unenforceable, there will be added in lieu thereof a provision as similar in terms to such
provision as is possible and be legal, valid and enforceable.

19. Except as expressly modified pursuant to this Agreement, all of the terms, covenants and
provisions of the Loan Documents shall continue in full force and effect. In the event of any
conflicts or ambiguity between the terms, covenants and provisions of this Agreement and those of
the Loan Documents, the terms, covenants and provisions of this Agreement shall prevail.

[Signatures on following page.]

 

5

 

IN WITNESS WHEREOF Borrower and Lender have caused this Agreement to be executed as of the
date first above written.

LENDER:

BANK OF AMERICA, NATIONAL ASSOCIATION, AS SUCCESSOR BY MERGER TO LASALLE BANK
NATIONAL ASSOCIATION, AS TRUSTEE FOR THE BENEFIT OF THE HOLDERS OF WACHOVIA BANK
COMMERCIAL MORTGAGE TRUST, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2007-WHALE 8

	 	 	 	 	 
	 	By and through CWCapital Asset Management LLC, solely in its capacity as Special Servicer for the Holder
 
	 
	 
	 	By:  	/s/ Kevin Thompson
 	 
	 	 	Name:  	Kevin Thompson 	 
	 	 	Title:  	Vice President 	 

[Signature Page to Modification of Hudson A-1 Note]

 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:  
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	HENRY HUDSON HOLDINGS LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Henry Hudson Senior Mezz LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a Delaware corporation, its managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ Richard Szymanski	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	
	 	Name: Richard Szymanski	 	 
	 

	 	 	 	 	 	 	 	
	 	Title:  Chief Financial Officer	 	 

[Signature Page to Modification of Hudson A-1 Note]

 

 

 

SCHEDULE A

Note A-1

See attached.

 

 

 

Hudson

PROMISSORY NOTE A-1

Note Amount: $108,500,000

Maturity Date: The Final Payment Date in July, 2010.

THIS
PROMISSORY NOTE A-1 (this “Note”), is made as of October 6, 2006 by the undersigned, as
maker (“Borrower”), in favor of WACHOVIA BANK, NATIONAL ASSOCIATION and its successors or assigns,
as payee (“Lender”).

R E C I T A L S:

(a) Borrower is indebted to Lender with respect to a loan (the “Original Loan”) in the
original principal amount of TWO HUNDRED SEVENTEEN MILLION and 00/100 DOLLARS ($217,000,000.00)
which is secured by the lien and security interest created, among other things, by that certain
Agreement of Consolidation and Modification of Mortgage, Security Agreement, Assignment of Rents
and Fixture Filing dated as of the date hereof from Borrower, as mortgagor, in favor and for the
benefit of Lender, as mortgagee, as security for the Loan;

(b) The Original Loan is evidenced by that certain promissory note in the original principal
sum of $217,000,000 from Borrower to Lender dated as of October 6, 2006 (the “Original Note”);

(c) The current outstanding principal balance due under the Original Loan is
$217,000,000;

(d) Borrower and Lender have severed the Original Note pursuant to the terms of that certain
note severance agreement between Borrower and Lender dated the date hereof (the “Severance
Agreement”) into two (2) separate and distinct obligations in substitution for the Original Note
represented by this Note in the amount of $108,500,000 and that certain Substitute Promissory Note
A-2 in the amount of $108,500,000 (the “Substitute Note A-2”); and

(e) Borrower and Lender intend these Recitals to be a material part of this Note.

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt and sufficiency, of which are hereby acknowledged, Borrower does hereby covenant and
promise to pay to the order of Lender, without any counterclaim, setoff or deduction whatsoever, on
the Maturity Date (as hereinafter defined), in immediately available funds, at Commercial Real
Estate Services, 8739 Research Drive URP 4, NC 1075, Charlotte, North Carolina 28262 or at such
other place as Lender may designate to Borrower in writing from time to time, in legal tender of
the United States of America, the Loan Amount and all other amounts due or becoming due hereunder,
to the extent not previously paid in accordance herewith, together with all interest accrued
thereon through the end of the Interest Accrual Period in which the Loan is repaid in full, at the
Interest Rate (as hereinafter defined) to be computed on the basis of the actual number of days
elapsed in a 360 day year, on so much of the Loan Amount as is from time to time outstanding on the
first day of the applicable Interest Accrual Period (as hereinafter defined).

 

 

 

SECTION 1. DEFINITIONS

As used herein, the following terms shall have the meanings herein specified unless the
context otherwise requires. Defined terms in this Note shall include in the singular number the
plural and in the plural number the singular. All capitalized terms not otherwise defined herein
shall have the meaning ascribed to them in the Security Instrument.

“Additional Taxes” shall have the meaning set forth in Section
2.1(d) hereof.

“Assumed Note Rate” shall mean an interest rate equal to the sum of one percent (1%)
plus the LIBOR Rate as determined on the preceding Interest Determination Date plus the LIBOR
Margin.

“Board” shall mean the Board of Governors of the Federal Reserve System, and any successor
thereof.

“Capital Adequacy Rule” shall mean any law, rule or regulation regarding capital
adequacy, or any interpretation or administration thereof adopted by any Governmental Authority,
central bank or comparable agency charged with the interpretation or administration thereof, or any
request or directive regarding capital adequacy of any such Governmental Authority, central bank or
comparable agency.

“Extension Option” shall have the meaning set forth in Section 2.1(a) hereof.

“Extension Term” shall have the meaning set forth in Section 2.1(a) hereof.

“Final Payment Date” shall mean (i) July 12, 2010 or (ii) if the Maturity Date is
extended pursuant to Section 2.1(e) hereof, October 12, 2011. Notwithstanding the foregoing, Lender
shall have the one (1) time right to change the Final Payment Date (but only in connection with a
change to the Interest Accrual Period) by giving notice of such change to Borrower.

“First Interest Accrual Period” shall mean the period commencing on the Closing Date
and ending on, but excluding, the Payment Date first occurring after the Closing Date.

“Interest Accrual Period” shall mean the period from the fifteenth (15th)
day of each month through and including the fourteenth (14th) day of the following
month, provided that, notwithstanding the foregoing, (a) Lender shall have the one (1) time right
to change the Interest Accrual Period but only in connection with a Securitization and concurrently
with a change to the Payment Date, by giving notice of such change to Borrower, and (b) the first
(1st) Interest Accrual Period shall be the First Interest Accrual Period. FOR
CLARIFICATION, NOTWITHSTANDING ANYTHING CONTAINED IN THIS NOTE OR IN THE SECURITY INSTRUMENT, BUT
SUBJECT TO SECTION 2.1(b) HEREOF, IN ADDITION TO ANY SUMS DUE UNDER SECTION 15.01 OF THE SECURITY
INSTRUMENT, IN THE EVENT THAT A PAYMENT OR PREPAYMENT OF THE PRINCIPAL AMOUNT IS MADE DURING THE
PERIOD FROM AND INCLUDING THE FIRST DAY IN A CALENDAR MONTH AFTER THE PAYMENT DATE IN SUCH CALENDAR
MONTH THROUGH AND INCLUDING THE LAST DAY OF THE INTEREST

 

2

 

ACCRUAL
PERIOD IN WHICH THE PREPAYMENT OCCURS, ALL INTEREST ON THE PRINCIPAL AMOUNT BEING PREPAID WHICH WOULD HAVE ACCRUED FROM
THE FIRST DAY OF THE INTEREST ACCRUAL PERIOD IMMEDIATELY FOLLOWING THE INTEREST ACCRUAL PERIOD IN
WHICH THE PREPAYMENT OCCURS (THE “SUCCEEDING INTEREST ACCRUAL PERIOD”) THROUGH AND
INCLUDING THE END OF THE SUCCEEDING INTEREST ACCRUAL PERIOD, CALCULATED AT (I) THE INTEREST RATE,
IF SUCH PREPAYMENT OCCURS ON OR AFTER THE INTEREST DETERMINATION DATE FOR THE SUCCEEDING INTEREST
ACCRUAL PERIOD OR (II) THE ASSUMED NOTE RATE, IF SUCH PREPAYMENT OCCURS BEFORE THE INTEREST
DETERMINATION DATE FOR THE SUCCEEDING INTEREST ACCRUAL PERIOD (THE “SHORTFALL”), SHALL BE DUE TO
LENDER AND LENDER SHALL, IN THE EVENT OF A PAYMENT OF THE DEBT IN FULL, RELEASE ITS LIENS ON THE
PROPERTY. IF THE SHORTFALL IS CALCULATED BASED UPON THE ASSUMED NOTE RATE, UPON DETERMINATION OF
THE LIBOR RATE ON THE INTEREST DETERMINATION DATE FOR THE SUCCEEDING INTEREST ACCRUAL PERIOD, (X)
IF THE INTEREST RATE FOR SUCH SUCCEEDING INTEREST ACCRUAL PERIOD IS LESS THAN THE ASSUMED NOTE
RATE, LENDER SHALL PROMPTLY REFUND TO BORROWER THE AMOUNT OF THE SHORTFALL PAID, CALCULATED AT A
RATE EQUAL TO THE DIFFERENCE BETWEEN THE ASSUMED NOTE RATE AND THE INTEREST RATE, OR (Y) IF THE
INTEREST RATE IS GREATER THAN THE ASSUMED NOTE RATE, BORROWER SHALL PROMPTLY (AND IN NO EVENT LATER
THAN THE NINTH (9TH) DAY OF THE FOLLOWING MONTH) PAY LENDER THE AMOUNT OF SUCH ADDITIONAL SHORTFALL
CALCULATED AT A RATE EQUAL TO THE EXCESS OF THE INTEREST RATE OVER THE ASSUMED NOTE RATE. BORROWER
HEREBY ACKNOWLEDGES THAT (X) THE PROVISO IN THE FIRST SENTENCE OF SECTION 15.01(b)(ii) OF THE
SECURITY INSTRUMENT SHALL BE DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING “PROVIDED
THAT, IN THE EVENT OF ANY PREPAYMENT THAT OCCURS ON ANY DATE OTHER THAN A PAYMENT DATE OR THE FINAL
PAYMENT DATE, AS APPLICABLE, THE AMOUNT PREPAID SHALL BE DEPOSITED IN AN INTEREST-BEARING ACCOUNT
UNTIL THE IMMEDIATELY SUCCEEDING PAYMENT DATE OR THE FINAL PAYMENT DATE, AS THE CASE MAY BE, AND
ALL INTEREST ACCRUING THEREON THROUGH THE DATE IMMEDIATELY PRECEDING SUCH IMMEDIATELY SUCCEEDING
PAYMENT DATE OR FINAL PAYMENT DATE, AS THE CASE MAY BE, SHALL BE REMITTED TO BORROWER, PROVIDED
THAT BORROWER ACKNOWLEDGES THAT LENDER MAKES NO REPRESENTATION OR WARRANTY AS TO THE RATE OF
RETURN.”; AND (Y) THE LAST SENTENCE OF SECTION 15.01(b)(ii) IS SUPERSEDED HEREBY, IS HEREBY DEEMED
DELETED AND IS OF NO FURTHER FORCE AND EFFECT. NOTWITHSTANDING THE FOREGOING, IN THE EVENT THE
OUTSTANDING PRINCIPAL BALANCE OF THE LOAN IS REPAID IN FULL ON ANY DAY FROM AND AFTER THE
COMMENCEMENT OF AN INTEREST ACCRUAL PERIOD UP TO AND INCLUDING THE PAYMENT DATE THAT OCCURS IN SUCH
INTEREST ACCRUAL PERIOD, BORROWER SHALL ONLY BE REQUIRED TO PAY INTEREST THROUGH THE END OF THE
INTEREST ACCRUAL PERIOD IN WHICH SUCH PAYMENT DATE OCCURS.

 

3

 

“Interest Determination Date” shall mean (i) with respect to any Interest Accrual
Period prior to the Interest Accrual Period that commences in the month during which the
Securitization Closing Date occurs, two (2) LIBOR Business Days prior to the fifteenth
(15th) day of the calendar month in which the applicable Interest Accrual Period
commences; (ii) with respect to the Interest Accrual Period that commences in the month in which
the Securitization Closing Date occurs, the date that is two (2) LIBOR Business Days prior to the
Securitization Closing Date and (iii) with respect to each Interest Accrual Period thereafter, the
date that is two (2) LIBOR Business Days prior to the fifteenth (15th) day of the
calendar month in which such Interest Accrual Period commences, provided that notwithstanding the
foregoing, (a) Lender shall have the one (1) time right to change the Interest Determination Date
by giving notice of such change to Borrower and (b) with respect to the First Interest Accrual
Period, the Interest Determination Date shall be two (2) LIBOR Business Days prior to the Closing
Date.

“Interest Rate” shall mean the rate per annum (expressed as a percentage) equal to the LIBOR
Rate plus the LIBOR Margin, or if Lender shall exercise its rights under Section 2.6, the interest
rate specified therein.

“LIBOR Business Day” shall mean any day on which banks are open for dealing in foreign
currency and exchange in London, England.

“LIBOR Margin” shall mean 96.790322580645 basis points per annum.

“LIBOR Rate” shall mean the rate per annum calculated as set forth below:

(i) With respect to each Interest Accrual Period, the rate for deposits
in Dollars, for a period equal to one month, which appears on the Dow Jones Market
Service (formerly Telerate) Page 3750 as of 11:00 a.m., London time, on the related
Interest Determination Date. If such rate does not appear on Dow Jones Market
Service Page 3750, the rate for that Interest Accrual Period shall be determined on
the basis of the rates at which deposits in Dollars are offered by any four major
reference banks in the London interbank market selected by Lender to provide such
bank’s offered quotation of such rates at approximately 11:00 a.m., London time, on
the related Interest Determination Date to prime banks in the London interbank market
for a period of one month, commencing on the first day of such Interest Accrual
Period and in an amount that is representative for a single such transaction in the
relevant market at the relevant time. Lender shall request the principal London
office of any four major reference banks in the London interbank market selected by
Lender to provide a quotation of such rates, as offered by each such bank. If at
least two such quotations are provided, the rate for that Interest Accrual Period
shall be the arithmetic mean of the quotations. If fewer than two quotations are
provided as requested, the rate for that Interest Accrual Period shall be the
arithmetic mean of the rates quoted by major banks in New York City selected by
Lender, at approximately 11:00 a.m., New York City time, on the Interest
Determination Date with respect to such Interest Accrual Period for loans in Dollars
to leading European banks for a period equal to one month, commencing on the first
day of such Interest Accrual Period and in an amount that is representative for a
single
 transaction in the relevant market at the relevant time. Lender shall determine the
LIBOR Rate for each Interest Accrual Period and the determination of the LIBOR Rate
by Lender shall be binding upon Borrower absent manifest error.

 

4

 

(ii) In the event that Lender shall have determined in its reasonable
discretion that none of the methods set forth in the definition of “LIBOR Rate”
herein are available, then Lender shall forthwith give notice by telephone of such
determination, confirmed in writing, to Borrower at least one (1) day prior to the
last day of the related Interest Accrual Period. If such notice is given, the LIBOR
Rate, commencing with such related Interest Accrual Period, shall be the LIBOR Rate
in effect for the most recent Interest Accrual Period.

“Maturity
Date” shall have the meaning set forth in Section 2.1(a)(iii) hereof.

“Maturity Date Notice” shall have the meaning set forth in Section 2.1(e)
hereof.

“Maximum Amount” shall have the meaning set forth in Section 5.4(a)
hereof.

“Modification” shall have the meaning set forth in Section 5.2 hereof.

“Parent” shall mean, with respect to Lender, any Person Controlling Lender.

“Payment” shall have the meaning set forth in Section 2.2(a) hereof.

“Payment Date” shall mean the ninth (9th) day of each month, or if such day is not
a Business Day, the immediately preceding Business Day. Notwithstanding the foregoing, Lender shall
have the one (1) time right to change the Payment Date (but only in connection with a change to the
Interest Accrual Period) by giving notice of such change to Borrower.

“Securitization Closing Date” shall mean the date upon which a Securitization closes.

SECTION 2. PAYMENTS AND LOAN TERMS

Section 2.1. Interest Payments.

(a) Payments under this Note, calculated in accordance with the terms hereof, shall be
due and payable as follows:

(i) interest at the Interest Rate for the First Interest Accrual Period shall be due
and payable on the Closing Date;

(ii) interest at the Interest Rate in effect for the Interest Accrual Period in which
each Payment Date occurs shall be due and payable on the Payment Date in November, 2006 and on each
subsequent Payment Date through and including the month during which occurs the Maturity Date, as
such Maturity Date may be extended from time to time pursuant to Section 2.1(e) hereof;

 

5

 

(iii) the entire outstanding Principal Amount, together with all accrued and unpaid
interest and any other charges and sums due hereon and on the other Loan Documents shall be due and
payable on July 12, 2010 (the “Maturity Date”), as such Maturity Date may be extended pursuant to
Section 2.1(e) hereof.

(b) For the sake of clarity, if Borrower shall have paid interest on the Payment Date in the
month in which the Final Payment Date occurs through the end of the then current Interest Accrual
Period and repays the Debt in full on or before the Final Payment Date, no additional interest
shall be due or payable by Borrower with respect to the period subsequent to the Payment Date.
Payments shall be paid by Borrower, without setoff or counterclaim, by wire transfer to Lender or
to such other location or account as Lender may specify to Borrower from time to time, in Federal
or other immediately available funds in lawful money of the United States of America, not later
than 2:00 PM, New York City time, on each Payment Date. If any payment hereunder or under any of
the other Loan Documents becomes due and payable on a day other than a Business Day, such payment
shall not be payable until the next succeeding Business Day; provided, however, if such
next succeeding Business Day falls within the next calendar month, such payment shall be due and
payable on the immediately preceding Business Day. If the date for any payments of principal is
extended on account of the foregoing or on account of operation of law or otherwise, interest
thereon shall be payable at the then applicable rate during such extension.

(c) Lender shall determine the LIBOR Rate as in effect from time to time on each Interest
Determination Date, and each such determination of the LIBOR Rate shall be conclusive and binding
absent manifest error.

(d) Payments made by Borrower under this Note shall be made free and clear of, and without
reduction for or on account of, any present or future income, stamp or other taxes, levies, imposts,
duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any Governmental Authority, excluding income and franchise taxes of the
United States of America or any political subdivision or taxing authority thereof or therein (such
non-excluded taxes being called “Additional Taxes”). If any Additional Taxes are required to be
withheld from any amounts payable to Lender hereunder or under any of the other Loan Documents, the
amounts so payable to Lender shall be increased to the extent necessary to yield to Lender (after
payment of all Additional Taxes) interest or any such other amounts payable hereunder at the rates
or in the amounts specified in this Note.

(e) Subject to the provisions of this Section 2.1(e), Borrower shall have one (1) option to
extend the term of the Loan from the original Maturity Date through October 12, 2011 (the “Extended
Maturity Date”) (the “Extension Option”, and the term extended pursuant thereto, the “Extension
Term”); provided that, with respect to the exercise of each Extension Option (i) Lender has
received written notice not more than one hundred twenty (120) days but not less than thirty (30)
days prior to the Maturity Date that Borrower desires to extend the Maturity Date or the extended
Maturity Date, as the case may be (the “Maturity Date Notice”) which shall be accompanied by a
payment of $100,000, (ii) no Event of Default has occurred and is continuing as of the date of the
Maturity Date Notice or the date the applicable Extension Term would commence, and (iii) Borrower
has delivered proof, reasonably satisfactory to Lender, that (A) the Debt Service Coverage for the
two (2) full fiscal quarters of the Borrower immediately preceding the Payment

 

6

 

Date which is immediately prior to the Maturity Date is 1.55 to
1.00 or greater and (B) either the existing Rate Cap Agreement has been extended or a replacement
Rate Cap Agreement has been obtained in form and substance substantially similar to the Rate Cap
Agreement delivered on the Closing Date and issued by a cap provider having a long-term unsecured
debt rating of “AA” (or its equivalent) by each Rating Agency with a LIBOR Rate strike price of
seven percent (7.0%) per annum, and a term expiring no earlier than the Extended Maturity Date (and
if Lender is not the named beneficiary thereunder, the same has been pledged to Lender). Provided
that all of the foregoing conditions have been satisfied, as reasonably determined by Lender,
following the giving of the Maturity Date Notice, the term “Maturity Date” when used herein and in
the other Loan Documents shall mean the date to which the Maturity Date has been extended as if
such date was the original Maturity Date set forth herein. Simultaneously with the commencement of
the Extension Term, Borrower shall pay to Lender an extension fee (the “Extension Fee”) in the
amount of 0.25% of the outstanding principal balance of the Loan as of the date of the applicable
Maturity Date Notice less any sums previously paid to Lender pursuant to clause (i) above (it being
acknowledged that if the sums paid to Lender pursuant to clause (i) above are in excess of those
required to be paid pursuant to this sentence, Lender shall reimburse such excess amount to
Borrower). In the event that Lender determines that the conditions set forth in this subsection (e)
have not been satisfied, the exercise of the Extension Option shall be of no further force or
effect and any extension fee previously paid to Lender in connection with the subject extension
request, less any actual costs incurred by Lender in connection with its review of Borrower’s
request for an extension of the Maturity Date, shall be credited towards the outstanding principal
balance of the Loan at Maturity. All reasonable costs and expenses incurred in connection with each
request for, and, if applicable, each extension of the Maturity Date, including without limitation,
reasonable attorneys’ fees incurred by Lender and any sums incurred in connection with the
extension or replacement of the Rate Cap Agreement (and, if applicable, the pledging of same to
Lender) shall be at the sole cost and expense of Borrower and shall either be paid by Borrower
directly or on demand to Lender.

Section 2.2. Application of Payments.

(a) Each and every payment (a “Payment”) made by Borrower to Lender in accordance with
the terms of this Note and/or the terms of any one or more of the other Loan Documents and all
other proceeds received by Lender with respect to the Debt, shall be applied as follows:

(1) Payments other than Unscheduled Payments shall be applied (i) first, to all
interest (other than Default Rate Interest) which shall be due and payable with respect to
the Loan Amount pursuant to the terms hereof as of the date the Payment is received
(including any Interest Shortfalls and interest thereon to the extent permitted by applicable
law), (ii) second, to all Late Charges, Default Rate Interest or other premiums and other
sums payable hereunder or under the other Loan Documents (other than those sums included in
clause (i) of this Section 2.2(a)(1)) in such order and priority as determined by Lender in
its sole discretion and (iii) on the Maturity Date, to the Loan Amount until the Loan Amount
has been paid in full.

 

7

 

(2) Unscheduled Payments shall be applied at the end of the Interest Accrual Period
in which such Unscheduled Payments are received as a principal prepayment of the Loan Amount
to amortize the Loan Amount.

(b) To the extent that Borrower makes a Payment or Lender receives any Payment or
proceeds for Borrower’s benefit, which are subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid to a trustee, debtor in possession, receiver,
custodian or any other party under any bankruptcy law, common law or equitable cause, then, to such
extent, the obligations of Borrower hereunder intended to be satisfied shall be revived and
continue as if such Payment or proceeds had not been received by Lender.

Section 2.3. Prepayments.

The Debt may not be prepaid, in whole or in part, except as set forth in Article XV
of the Security Instrument.

Section 2.4. Indemnity.

Borrower agrees to indemnify Lender and to hold it harmless from any cost, loss or expense
which Lender may sustain or incur as a consequence of (a) Borrower making a payment or prepayment
of principal on the Loan on a day which is not a Payment Date with respect thereto, (b) default by
Borrower in making any prepayment after Borrower has given a notice of prepayment, and (c) any
acceleration of the maturity of the Loan by Lender in accordance with the terms of this Note and
the other Loan Documents, including, but not limited to, any such reasonable cost, loss or expense
arising in liquidating the Loan and from interest or fees payable by Lender to lenders of funds
obtained by it in order to maintain the Loan hereunder.

Section 2.5. Increased Cost and Reduced Return.

(a) If, on or after the date hereof, the adoption of any applicable law, rule or
regulation, or any change in any applicable law, rule or regulation, or any change in the
interpretation or administration thereof by any Governmental Authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance by Lender with any
request or directive (whether or not having the force of law) of any such Governmental Authority,
central bank or comparable agency, or any such Governmental Authority, central bank or comparable
agency shall impose, modify or deem applicable any reserve (including, without limitation, any such
requirement imposed by the Board), special deposit, insurance assessment or similar requirement
against assets of, deposits with or for the account of, or credit extended by, Lender or shall
impose on Lender or on the London interbank market any other condition affecting the Loan
(excluding, in each case, with respect to any such requirement reflected in the then effective
LIBOR Rate), and the result of any of the foregoing is to increase the cost to Lender of
maintaining the Loan at the Interest Rate (based upon the LIBOR Rate), or to reduce the amount of
any sum received or receivable by Lender under this Note with respect thereto, by an amount deemed
by Lender (acting reasonably) to be material, then, within ten (10) days after written demand by
Lender, Borrower shall pay to Lender such additional amount or amounts as will compensate Lender for such increased cost or reduction
suffered with respect to the Loan.

 

8

 

(b) If Lender shall have reasonably determined in good faith that, after the date hereof, the
adoption of any Capital Adequacy Rule has or would have the effect of reducing the rate of return
on capital of Lender (or its Parent) as a consequence of Lender’s obligations hereunder to a level
below that which Lender (or its Parent) could have achieved but for such adoption of such Capital
Adequacy Rule (taking into consideration its policies with respect to capital adequacy) by an
amount deemed by Lender (acting reasonably) to be material, then from time to time, within fifteen
(15) days after written demand by Lender, Borrower shall pay to Lender such additional amount or
amounts as will compensate Lender (or its Parent) for such reduction suffered with respect to the
Loan.

(c) By its acceptance of this Note, Lender agrees, for itself and its successors and assigns,
that it will promptly notify Borrower of any event of which it has knowledge, occurring after the
date hereof, which will entitle Lender to compensation pursuant to this Section 2.5. By acceptance
of this Note, Lender agrees, for itself and its successors and assigns, that in connection with
claiming compensation under either Section 2.5(a) or 2.5(b), Lender shall deliver to Borrower a
certificate which shall set forth in reasonable detail the basis for and the calculation of such
amounts, (which at a minimum shall set forth at least the same amount of detail in respect of the
calculation of such amount as Lender provides in similar circumstances to other similarly situated
borrowers from Lender), and (ii) in the case of a certificate delivered in respect of amounts
payable pursuant to Section 2.5(b) include a statement by Lender that it has allocated to the Loan
a proportionately equal amount of any reduction of the rate of return on Lender’s capital due to a
Capital Adequacy Rule as it has allocated to each of its other outstanding loans that are affected
similarly by such Capital Adequacy Rule. Any certificate delivered pursuant to the immediately
preceding sentence shall be conclusive in the absence of manifest error.

(d) By acceptance of this Note, Lender agrees, for itself and its successors and assigns, that
Borrower shall not be required to compensate any Lender pursuant to this Section 2.5 for any
increased costs or reductions (i) incurred more than sixty (60) days prior to the date such Lender
notifies Borrower of the event which entitles Lender to compensation pursuant to Section 2.5 and/or
(ii) unless such Lender is also seeking compensation from other similarly situated borrowers as
well.

Section 2.6. Deposits Unavailable.

In the event, and on each occasion, that (a) Lender shall have determined that Dollar deposits
in the principal amounts of the Loan are not generally available to Lender in the London interbank
market, for such periods and amounts then outstanding hereunder or that reasonable means do not
exist for ascertaining the LIBOR Rate, or (b) Lender determines that the rate at which such Dollar
deposits are being offered will not adequately and fairly reflect the cost to Lender of maintaining
the Loan at the Interest Rate (based upon the LIBOR Rate) during such month, Lender shall, as soon
as practicable thereafter, give written notice of such determination to Borrower. In the event of
any such determination, until the circumstances giving rise to such notice no longer exist, the Loan shall bear interest at the interest rate applicable to
the immediately preceding Interest Accrual Period.

 

9

 

Section 2.7. Illegality.

If, on or after the date of this Note, the adoption of any applicable law, rule or regulation,
or any change in any applicable law, rule or regulation, or any change in the interpretation or
administration thereof by any Governmental Authority, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by Lender with any request or
directive (whether or not having the force of law) of any such authority, central bank or
comparable agency shall make it unlawful or impossible for Lender to maintain the Loan at the
Interest Rate (based upon the LIBOR Rate), Lender shall forthwith give notice thereof to Borrower.
If Lender shall determine that it may not lawfully continue to maintain the Loan at the Interest
Rate (based upon the LIBOR Rate) to maturity and shall so specify in such notice, the Loan shall
bear interest at the interest rate applicable to the immediately preceding Interest Accrual Period.

SECTION 3. DEFAULTS

Section 3.1. Events of Default.

This Note is secured by, among other things, the Security Instrument which specifies various
Events of Default, upon the happening of which all or portions of the sums owing under this Note
may be declared immediately due and payable as more specifically provided therein. Each Event of
Default under the Security Instrument or any one or more of the other Loan Documents shall be an
Event of Default hereunder.

Section 3.2. Remedies.

If an Event of Default shall occur  and shall be continuing hereunder or under any
other Loan Document, interest on the Principal Amount and, to the extent permitted by applicable
law, all accrued but unpaid interest on the Principal Amount shall, commencing on the date of the
occurrence of such Event of Default, at the option of Lender, immediately and without notice to
Borrower, accrue interest at the Default Rate until such Event of Default is cured or if not cured
or such cure is not accepted by Lender, until the repayment of the Debt. The foregoing provision
shall not be construed as a waiver by Lender of its right to pursue any other remedies available to
it under the Security Instrument, or any other Loan Document, nor shall it be construed to limit in
any way the application of the Default Rate.

SECTION 4. EXCULPATION

Section 4.1. Exculpation.

Notwithstanding anything to the contrary contained in this Note or the other Loan Documents,
the obligations of Borrower hereunder shall be non-recourse except with respect to the Property and
as otherwise provided in Section 18.32 of the Security Instrument, the terms of which are
incorporated herein by reference as if fully set forth herein.

 

10

 

SECTION 5. MISCELLANEOUS

Section 5.1. Further Assurances.

Borrower shall execute and acknowledge (or cause to be executed and acknowledged) and deliver
to Lender all documents, and take all actions, required by Lender from time to time to confirm the
rights created or now or hereafter intended to be created under this Note and the other Loan
Documents, to protect and further the validity, priority and enforceability of this Note and the
other Loan Documents, to subject to the Loan Documents any property of Borrower intended by the
terms of any one or more of the Loan Documents to be encumbered by the Loan Documents, or otherwise
carry out the purposes of the Loan Documents and the transactions contemplated thereunder;
provided, however, that no such further actions, assurances and confirmations
shall increase Borrower’s obligations, or decrease Borrower’s rights, under this Note or any of the
Loan Documents.

Section 5.2. Modification, Waiver in Writing.

No modification, amendment, extension, discharge, termination or waiver (a “Modification”) of
any provision of this Note, the Security Instrument or any one or more of the other Loan Documents,
nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same
shall be in a writing signed by the party against whom enforcement is sought, and then such waiver
or consent shall be effective only in the specific instance, and for the purpose, for which given.
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.
Lender does not hereby agree to, nor does Lender hereby commit itself to, enter into any
Modification. However, in the event Lender does ever agree to a Modification, the making and the
conditions for the making of such Modification shall only be upon the terms and conditions set
forth in the Security Instrument and such Modification.

Section 5.3. Costs of Collection.

Borrower agrees to pay all costs and expenses of collection incurred by Lender, in addition to
principal, interest and late or delinquency charges (including, without limitation, reasonable
attorneys’ fees and disbursements) and including all costs and expenses incurred in connection with
the pursuit by Lender of any of its rights or remedies referred to in Section 3 hereof or its
rights or remedies referred to in any of the Loan Documents or the protection of or realization of
collateral or in connection with any of Lender’s collection efforts, whether or not suit on this
Note, on any of the other Loan Documents or any foreclosure proceeding is filed, and all such costs
and expenses shall be payable on demand, together with interest thereon from the date due until the
date paid in full at the Default Rate thereon, and also shall be secured by the Security Instrument
and all other collateral at any time held by Lender as security for Borrower’s obligations to
Lender.

 

11

 

Section 5.4. Maximum Amount.

(a) It is the intention of Borrower and Lender to conform strictly to the usury and
similar laws relating to interest and the collection of other charges from time to time in force,
and all agreements between Borrower and Lender, whether now existing or hereafter arising and
whether oral or written, are hereby expressly limited so that in no contingency or event
whatsoever, whether by acceleration of maturity hereof or otherwise, shall the amount paid or
agreed to be paid in the aggregate to Lender as interest or other charges hereunder or under the
other Loan Documents or in any other security agreement given to secure the Debt, or in any other
document evidencing, securing or pertaining to the Debt, exceed the maximum amount permissible
under applicable usury or such other laws (the “Maximum Amount”). If under any
circumstances whatsoever fulfillment of any provision hereof, or any of the other Loan Documents,
at the time performance of such provision shall be due, shall involve transcending the Maximum
Amount, then ipso facto, the obligation to be fulfilled shall be reduced to the Maximum Amount. For
the purposes of calculating the actual amount of interest or other charges paid and/or payable
hereunder, in respect of laws pertaining to usury or such other laws, all charges and other sums
paid or agreed to be paid hereunder to the holder hereof for the use, forbearance or detention of
the Debt, outstanding from time to time shall, to the extent permitted by applicable law, be
amortized, prorated, allocated and spread from the date of disbursement of the proceeds of this
Note until payment in full of all of the Debt, so that the actual rate of interest on account of
the Debt is uniform through the term hereof. The terms and provisions of this Section 5.4 shall
control and supersede every other provision of all agreements between Borrower or any endorser and
Lender.

(b) If under any circumstances Lender shall ever receive an amount which would exceed the
Maximum Amount, such amount shall be deemed a payment in reduction of the Loan Amount owing
hereunder and any other obligation of Borrower in favor of Lender, and shall be so applied in
accordance with Section 2.2 hereof, or if such excessive interest exceeds the unpaid balance of the
Loan Amount and any other obligation of Borrower in favor of Lender, the excess shall be deemed to
have been a payment made by mistake and shall be refunded to Borrower.

Section 5.5. Waivers.

Borrower hereby expressly and unconditionally waives presentment, demand, protest, notice of
protest or notice of any kind, including, without limitation, any notice of intention to accelerate
and notice of acceleration, except as expressly provided herein, and in connection with any suit,
action or proceeding brought by Lender on this Note, any and every right it may have to (a) a trial
by jury, (b) interpose any counterclaim therein (other than a counterclaim which can only be
asserted in the suit, action or proceeding brought by Lender on this Note and cannot be maintained
in a separate action) and (c) have the same consolidated with any other or separate suit, action or
proceeding.

Section 5.6. Governing Law.

This Note and the obligations arising hereunder shall be governed by, and construed in
accordance with, the laws of the State of New York applicable to contracts made and performed in
such State and any applicable law of the United States of America.

 

12

 

Section 5.7. Headings.

The Section headings in this Note are included herein for convenience of reference only
and shall not constitute a part of this Note for any other purpose.

Section 5.8. Assignment.

Lender shall have the right to transfer, sell and assign this Note in accordance with
Section 17.01 of the Security Instrument. All references to “Lender” hereunder shall be deemed
to include the assigns of the Lender.

Section 5.9. Severability.

Wherever possible, each provision of this Note shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Note shall be prohibited by,
or invalid under, applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision or the remaining
provisions of this Note.

Section 5.10. Joint and Several.

If Borrower consists of more than one Person or party, the obligations and liabilities
of each such Person or party hereunder shall be joint and several.

Section 5.11. Substitute Note.

This Note is “Substitute Note A-1” executed and delivered pursuant to the Severance Agreement.
The principal indebtedness evidenced hereby is a portion of the principal indebtedness evidenced by
the Original Note in the original principal sum of $217,000,000 made by Borrower to Lender.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

13

 

IN WITNESS WHEREOF, this Note has been duly executed by the Borrower the day and year first
written above.

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	HENRY HUDSON HOLDINGS LLC, a

Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Marc S. Gordon	 	 
	 

	 	 	 	 

Name: Marc S. Gordon
	 	 
	 

	 	 	 	Title: Authorized Signatory
	 	 
	 

	 	 	 	Borrower’s Tax ID/SS#: 13-4035148	 	 

 

14

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