Table of Contents

				Page
SECTION 1.		DEFINITIONS			1
SECTION 2.		AMOUNT AND TERMS OF REVOLVING CREDIT			29
COMMITMENTS					29
2.1.		Revolving Credit Commitments			29
2.2.		Notes			30
2.3.		Advance Amounts			30
2.4.		Procedure for Borrowing			30
2.5.		Termination of Revolving Credit Commitments			32
2.6.		Maturity			33
2.7.		Fees			33
2.8.		Adjustment to Maximum Credit			33
SECTION 3.		GENERAL PROVISIONS APPLICABLE TO LOANS			33
3.1.		Interest Rates and Payment Dates			33
3.2.		Optional Prepayments			34
3.3.		Mandatory Prepayments			35
3.4.		Prepayment Amounts			38
3.5.		Computation of Interest and Fees			38
3.6.		Pro Rata Treatment and Payments			39
3.7.		Illegality			40
3.8.		Inability to Determine Interest Rate			40
3.9.		Legal Requirements			40
3.10.		Taxes			42
3.11.		Indemnity			44
3.12.		Lending Offices; Change of Lending Office			44
3.13.		Cash Management			45
SECTION 4.		COLLATERAL SECURITY			47
4.1.		Collateral; Security Interest			47
4.2.		Security Agreement; Financing Statements			48
4.3.		Administrative Agents Appointment as Attorney-in-Fact			49
4.4.		Performance by Administrative Agent of Borrowers Obligations			50
4.5.		Limitation on Duties Regarding Preservation of Collateral			50
4.6.		Powers Coupled with an Interest			50
4.7.		Release of Security Interest			51
4.8.		Substitution of Assets			53

Table of Contents
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SECTION 5.		REPRESENTATIONS AND WARRANTIES			54
5.1.		Financial Information; Fiscal Year			54
5.2.		Legal Name			55
5.3.		Organizational Identification Number			55
5.4.		Chief Executive Office; Jurisdiction of Organization			55
5.5.		Location of Books and Records			55
5.6.		Existence; Compliance with Law			55
5.7.		Proceedings			55
5.8.		No Conflicts			55
5.9.		Litigation			55
5.10.		Agreements			56
5.11.		Consents			56
5.12.		Title			56
5.13.		Taxes			56
5.14.		Federal Regulations			57
5.15.		ERISA			57
5.16.		Compliance			57
5.17.		Investment Company Act; Other Regulations			57
5.18.		Enforceability			57
5.19.		Insurance			57
5.20.		Use of Property			58
5.21.		Filing and Recording Taxes			58
5.22.		[Intentionally Omitted]			58
5.23.		Organizational Structure			58
5.24.		Guarantor Assets			58
5.25.		Accounts			58
5.26.		No Other Financing			59
5.27.		Full and Accurate Disclosure			59
5.28.		Other Obligations and Liabilities			59
5.29.		Solvency			59
5.30.		Single Purpose			60
5.31.		Pledged Assets			62
5.32.		Ashford REIT Financial Status			64
SECTION 6.		CONDITIONS PRECEDENT			64
6.1.		Conditions to Agreement and Initial Loan			64
6.2.		Conditions to Each Loan			67
SECTION 7.		AFFIRMATIVE COVENANTS			74
7.1.		Existence; Compliance with Legal Requirements			74

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7.2.		Taxes and Other Claims			75
7.3.		Perform Loan Documents, Pledged Asset Documents			75
7.4.		[Intentionally Omitted]			75
7.5.		Further Assurances			75
7.6.		Cooperate in Legal Proceedings			75
7.7.		Financial Reporting			76
7.8.		Business and Operations			77
7.9.		Preservation of Pledged Assets			77
7.10.		Title to the Collateral			78
7.11.		Costs of Enforcement			78
7.12.		Estoppel Statement			78
7.13.		Use of Proceeds			79
7.14.		Maintenance of Properties			79
7.15.		Delivery of Notices			79
7.16.		After Acquired Property			81
7.17.		[Intentionally Omitted]			81
7.18.		Delivery of Documents Regarding Ownership			81
7.19.		Attorneys Fees and Expenses			81
7.20.		Insurance			82
7.21.		Collateral Files; Custodian			83
7.22.		Collateral Records			83
7.23.		Collateral File; Pledged Asset Schedule			83
7.24.		Records			84
7.25.		Delivery of Servicing Report			84
7.26.		Borrowing Base Deficiency			84
7.27.		Patriot Act			84
7.28.		[Intentionally Omitted]			85
7.29.		Future Funding Obligations			85
7.30.		True and Correct Information			86
7.31.		Environmental Laws			86
SECTION 8.		NEGATIVE COVENANTS			86
8.1.		Financial Condition Covenants			86
8.2.		Limitation on Indebtedness			87
8.3.		Limitation on Liens			87
8.4.		Transfers of Interests			87
8.5.		Limitation on Fundamental Changes			88
8.6.		Changes in Locations, Name, etc			88
8.7.		Limitation on Transactions with Affiliates			88
8.8.		Limitation on Changes in Fiscal Year			88
8.9.		Limitation on Negative Pledge Clauses			88
8.10.		Limitation on Lines of Business			89

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8.11.		ERISA			89
8.12.		Debt Cancellation			89
8.13.		Zoning			89
8.14.		No Joint Assessment			89
8.15.		Governing Documents			89
8.16.		Special Purpose			89
8.17.		Compliance with Restrictive Covenants, Etc			89
8.18.		Embargoed Person			90
8.19.		Certain Actions Relating to Pledged Assets			90
8.20.		Accounting Policies			91
8.21.		Lienable Work			91
8.22.		Conversion			91
SECTION 9.		DUE DILIGENCE			91
SECTION 10.		EVENTS OF DEFAULT			92
10.1.		Events of Default			92
10.2.		UCC Remedies			96
10.3.		Possession			97
10.4.		Collections			97
10.5.		Liquidation			97
10.6.		Private Sale			98
10.7.		Costs			98
10.8.		Remedies Cumulative; Waiver			98
10.9.		Non-judicial Remedies			99
10.10.		Appointment of Receiver			99
SECTION 11.		THE ADMINISTRATIVE AGENT			99
11.1.		Appointment of Administrative Agent			99
11.2.		Delegation of Duties			99
11.3.		Exculpatory Provisions			99
11.4.		Reliance by Administrative Agent			100
11.5.		Notice of Default			100
11.6.		Non-Reliance on Administrative Agent and Other Lenders			100
11.7.		Indemnification			101
11.8.		Administrative Agent in its Individual Capacity			101
11.9.		Successor Administrative Agent			101
11.10.		Certain Collateral Matters			102

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SECTION 12.		INDEMNIFICATION			103
SECTION 13.		MISCELLANEOUS			104
13.1.		Amendments and Waivers			104
13.2.		Notices			105
13.3.		No Waiver; Cumulative Remedies			106
13.4.		Survival of Representations and Warranties			107
13.5.		Payment of Expenses and Taxes			107
13.6.		Successors and Assigns; Participations and Assignments			107
13.7.		Adjustments; Set-off			109
13.8.		Brokers and Financial Advisors			110
13.9.		Servicing			110
13.10.		Preferences			111
13.11.		Prior Agreements			111
13.12.		Counterparts			111
13.13.		Severability			111
13.14.		Integration			111
13.15.		Governing Law			111
13.16.		Acknowledgements			113
13.17.		Waivers of Jury Trial			113
13.18.		Discretion			113
[NO FURTHER TEXT ON THIS PAGE]					115

Schedules:
Schedule 1:		Lenders, Commitments and Applicable Lending Offices
Schedule 2:		Advance Rates and Applicable Spreads
Schedule 3:		Collateral File Requirements
Schedule 4:		UCC Filing Jurisdictions
Schedule 5:		Organizational Structures
Schedule 6:		Form of Opinion

Exhibits:
Exhibit A:		Form of Request for Borrowing
Exhibit B:		Form of Note
Exhibit C-1:		Form of Assignment of Mortgage
Exhibit C-2:		Form of Collateral Assignment of Mortgage
Exhibit D-1:		Form of Assignment of Assignment of Leases and Rents
Exhibit D-2:		Form of Collateral Assignment of Assignment of Leases and Rents
Exhibit E:		Form of Collateral Assignment of Participation Interest
Exhibit F:		Form of Collateral Assignment of Pledge
Exhibit G:		Form of Borrowing Base Certificate
Exhibit H:		Form of Custodial Delivery Letter
Exhibit I:		Form of Trust Receipt
Exhibit J:		Form of Pledged Asset Schedule
Exhibit K:		Form of Assignment and Acceptance
Exhibit L:		Form of Payment Direction Letter
Exhibit M:		Asset-Level Representations and Warranties

REVOLVING CREDIT LOAN AND SECURITY AGREEMENT

     THIS REVOLVING CREDIT LOAN AND SECURITY AGREEMENT, dated as of December 23, 2005 (as amended, supplemented or otherwise modified from time to time, this Agreement), is among ASHFORD FINANCE SUBSIDIARY II LP, a Delaware limited partnership (Borrower), UBS REAL ESTATE INVESTMENTS INC., a Delaware corporation (in its individual capacity and not as the Administrative Agent, UBS), the other lenders who, from time to time, are parties hereto in accordance with the terms of this Agreement (UBS, collectively with such other lenders, the Lenders), and UBS REAL ESTATE INVESTMENTS INC., a Delaware corporation, and any successors appointed pursuant to this Agreement, as administrative agent for the Lenders hereunder (the Administrative Agent).

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