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Title: |
Hotel Loan Agreement |
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Entities: |
Ashford Hospitality LP; Ashford Hospitality Trust Inc.; Ashford TRS Corp.; FelCor Lodging Trust Inc.; Frisch’s Restaurants, Inc.; Merrill Lynch & Co., Inc. |
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Date: |
2004 |
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Size: |
Preview shows 18KB of 286KB total |
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Price: |
$90 |
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ID: |
#265042 |
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[MERRILL LYNCH LOGO]
HOTEL LOAN AGREEMENT
FOR A LOAN IN THE AMOUNT OF
$36,000,000
MADE BY AND AMONG
ASHFORD DAYTON LP,
ASHFORD COLUMBUS LP,
ASHFORD FLAGSTAFF LP,
ASHFORD PHOENIX LP, AND
ASHFORD SYRACUSE LP,
EACH A DELAWARE LIMITED PARTNERSHIP
AS "BORROWERS"
AND
MERRILL LYNCH CAPITAL,
A DIVISION OF MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC.,
A DELAWARE CORPORATION
222 NORTH LASALLE STREET - 16TH FLOOR
CHICAGO, ILLINOIS 60601
AS "LENDER"
ASHFORD HOTEL PORTFOLIO
Dated as of December 24, 2003
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
PAGE
----
{S} {C}
ARTICLE 1 INCORPORATION OF RECITALS, EXHIBITS AND SCHEDULES.................................................. 2
1.1 Incorporation of Recitals.................................................................. 2
1.2 Incorporation of Exhibits and Schedule..................................................... 2
1.3 Definitional Provisions.................................................................... 2
ARTICLE 2 LOAN AND LOAN DOCUMENTS............................................................................ 2
2.1 Conditions Precedent....................................................................... 2
2.2 Loan Documents............................................................................. 2
2.3 Disbursements.............................................................................. 3
2.4 Term of the Loan........................................................................... 4
2.5 Prepayments................................................................................ 5
2.6 Interest................................................................................... 5
2.7 Monthly Payments........................................................................... 6
2.8 Exit Fee................................................................................... 6
2.9 Default Interest and Late Charge........................................................... 6
2.10 Project Partial Prepayments, Partial Releases.............................................. 7
ARTICLE 3 FINANCIAL REPORTING COVENANTS...................................................................... 7
3.1 Financial Information Reporting............................................................ 7
3.2 Financial Information Form and Examination................................................. 9
ARTICLE 4 OPERATIONAL AND OTHER COVENANTS.................................................................... 9
4.1 Leasing and Operational Covenants.......................................................... 9
4.2 Other Borrower Covenants................................................................... 14
4.3 Authorized Representative.................................................................. 22
ARTICLE 5 BORROWER'S REPRESENTATIONS AND WARRANTIES.......................................................... 23
5.1 Borrower's Representations and Warranties.................................................. 23
ARTICLE 6 ENVIRONMENTAL MATTERS.............................................................................. 28
6.1 Environmental Representations and Warranties............................................... 28
6.2 Environmental Covenants.................................................................... 28
6.3 Right of Entry and Disclosure of Environmental Reports..................................... 29
6.4 Environmental Indemnitor's Remedial Work................................................... 31
6.5 Environmental Indemnity.................................................................... 31
6.6 Remedies Upon an Environmental Default..................................................... 32
6.7 Unconditional Environmental Obligations.................................................... 33
6.8 Assignment of Environmental Obligations Prohibited......................................... 33
6.9 Indemnification Separate from the Loan..................................................... 33
ARTICLE 7 CASUALTIES AND CONDEMNATION........................................................................ 34
7.1 Lender's Election to Apply Insurance Proceeds on Indebtedness.............................. 34
7.2 Borrower's Obligation to Rebuild and Use of Insurance Proceeds Therefor.................... 34
{/TABLE}
-i-
{PAGE}
{TABLE}
{S} {C}
ARTICLE 8 EVENTS OF DEFAULT AND REMEDIES..................................................................... 35
8.1 Events of Default.......................................................................... 35
8.2 Remedies Conferred Upon Lender............................................................. 37
ARTICLE 9 LOAN EXPENSE, COSTS AND ADVANCES................................................................... 38
9.1 Loan and Administration Expenses........................................................... 38
9.2 Right of Lender to Make Advances to Cure Borrower's Defaults............................... 39
9.3 Increased Costs............................................................................ 39
9.4 Borrower Withholding....................................................................... 39
9.5 Document and Recording Tax Indemnification................................................. 39
ARTICLE 10 ASSIGNMENTS BY LENDER AND DISCLOSURE.............................................................. 40
10.1 Assignments and Participations............................................................. 40
10.2 Disclosure of Information.................................................................. 40
ARTICLE 11 GENERAL PROVISIONS................................................................................ 40
11.1 Captions................................................................................... 40
11.2 Waiver of Jury Trial....................................................................... 40
11.3 Jurisdiction............................................................................... 41
11.4 Governing Law.............................................................................. 42
11.5 Lawful Rate of Interest.................................................................... 42
11.6 Modification; Consent...................................................................... 42
11.7 Waivers; Acquiescence or Forbearance Not to Constitute Waiver of Lender's
Requirements............................................................................... 42
11.8 Disclaimer by Lender....................................................................... 43
11.9 Partial Invalidity; Severability........................................................... 44
11.10 Definitions Include Amendments............................................................. 44
11.11 Execution in Counterparts.................................................................. 44
11.12 Entire Agreement........................................................................... 44
11.13 Waiver of Damages.......................................................................... 45
11.14 Claims Against Lender...................................................................... 45
11.15 Set-Offs................................................................................... 45
11.16 Relationship............................................................................... 45
11.17 Agents..................................................................................... 46
11.18 Interpretation............................................................................. 46
11.19 Successors and Assigns..................................................................... 46
11.20 Time is of the Essence..................................................................... 46
11.21 Notices.................................................................................... 46
11.22 Joint and Several Liability................................................................ 48
{/TABLE}
-ii-
{PAGE}
LIST OF EXHIBITS AND SCHEDULES TO LOAN AGREEMENT
Joinder Principal's Limited Joinder
Exhibit A Legal Description of Land
Exhibit B Permitted Exceptions
Exhibit C Litigation
Exhibit D Rent Roll
Exhibit E Insurance Requirements
Exhibit F Environmental Documents
Exhibit G FF&E Not Owned by Borrower
Exhibit H Intellectual Property
Exhibit I Direct and Indirect Ownership of Borrowers, Project Lessee and
Principal
Exhibit J Franchise Licenses
Exhibit K Release Price
Exhibit L Encroachments
Schedule I Definitions
-iii-
{PAGE}
HOTEL LOAN AGREEMENT
THIS HOTEL LOAN AGREEMENT ("AGREEMENT") is made as of December
__, 2003, by and among ASHFORD DAYTON LP, ASHFORD COLUMBUS LP, ASHFORD FLAGSTAFF
LP, ASHFORD PHOENIX LP, and ASHFORD SYRACUSE LP, each a Delaware limited
partnership (collectively, "BORROWERS"; each a "BORROWER"), and MERRILL LYNCH
CAPITAL, a Division of Merrill Lynch Business Financial Services Inc., a
Delaware corporation (collectively, with its successors and assigns, "LENDER").
RECITALS
A. Each Borrower is the owner in fee simple of the land or, in
the case of Ashford Columbus LP, the lessee of the air rights legally described
in Exhibit A below the name of such Borrower, together with the improvements
located thereon or therein generally consisting of a hotel and related
facilities as more specifically described in Exhibit A.
B. Principal has applied to Lender for a loan to Borrowers of up
to Thirty-Six Million and No/100ths Dollars ($36,000,000.00) (the "LOAN") for
the purpose of refinancing acquisition costs and financing renovation costs for
the Projects, and Lender is willing to make the Loan on the terms and conditions
hereinafter set forth. The Loan is evidenced by that certain Promissory Note of
even date herewith made by Borrowers in the original principal amount of
Thirty-Six Million and No/100ths Dollars ($36,000,000.00) and payable to Lender
(the Promissory Note and all amendments thereto and substitutions therefor are
hereinafter referred to as the "NOTE"). The terms and provisions of the Note are
hereby incorporated by reference, in this Agreement.
C. Borrowers' obligations under the Loan will be secured by,
among other items, (a) the Mortgages, (b) a Security Agreement encumbering
Borrowers' personal property (the "SECURITY AGREEMENT") and (c) a Lessee
Security Agreement encumbering Project Lessee's personal property (the "LESSEE
SECURITY AGREEMENT"), each granting Lender a first priority security interest in
all of the assets of each Borrower and a security agreement executed by Project
Lessee granting Lender a first priority security interest in all personal
property owned by Project Lessee and used in connection with each Project. This
Agreement, the Note, the Mortgages, that certain Lessor Estoppel Certificate and
Agreement executed December __, 2003, by and between Ashford Columbus LP, Lender
and Huntington Center Associates, and any other documents evidencing or securing
the Loan or executed in connection therewith, and any modifications, renewals
and extensions thereof, are referred to herein collectively as the "LOAN
DOCUMENTS."
D. Each Borrower has entered into a lease of the Project owned by
such Borrower (each, a "PROJECT LEASE") with Ashford TRS Corporation, a Delaware
corporation (together with its successors and assigns, "PROJECT LESSEE"),
pursuant to which Project Lessee will lease each Project to the applicable
Borrower.
NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements herein contained, the parties hereto agree as follows:
{PAGE}
ARTICLE 1
INCORPORATION OF RECITALS, EXHIBITS AND SCHEDULES
1.1 INCORPORATION OF RECITALS.
The foregoing preambles and all other recitals set forth herein are
made a part hereof by this reference.
1.2 INCORPORATION OF EXHIBITS AND SCHEDULE.
Exhibits A through J, the Limited Joinder and Schedule I to this
Agreement, attached hereto are incorporated in this Agreement and expressly made
a part hereof by this reference.
1.3 DEFINITIONAL PROVISIONS.
All terms defined in Schedule I of this Agreement or otherwise in
this Agreement shall, unless otherwise defined therein, have the same meanings
when used in the Note, Mortgage, any other Loan Documents, or any certificate or
other document made or delivered pursuant hereto. The words "hereof", "herein"
and "hereunder" and words of similar import when used in this Agreement shall
refer to this Agreement. The word "include(s)" when used in this Agreement and
the other Loan Documents means "include(s), without limitation," and the word
"including" means "including, but not limited to."
ARTICLE 2
LOAN AND LOAN DOCUMENTS
2.1 CONDITIONS PRECEDENT.
Borrowers agree that Lender's obligation to close the Loan is
conditioned upon Borrowers' delivery, performance and satisfaction, in Lender's
sole discretion, of all items set forth (a) in that certain Loan Application
accepted by Principal on October 31, 2003 (the "LOAN APPLICATION") and (b) on
that certain Closing Checklist issued with respect to such Loan Application.
2.2 LOAN DOCUMENTS.
Borrowers agree that Borrowers will, on or before the Closing Date,
execute and deliver or cause to be executed and delivered to Lender this
Agreement and the other Loan Documents in form and substance acceptable to
Lender. In addition, Borrowers shall deliver such other documents, instruments
or certificates as Lender and its counsel may reasonably require, including such
documents as Lender in its sole discretion deems necessary or appropriate to
effectuate the terms and conditions of this Agreement and the other Loan
Documents, and to comply with the laws of the states of Illinois and, as
applicable, New York, Ohio and Arizona. Furthermore, Borrowers acknowledge that
Borrowers are obligated to cause their counsel to issue a legal opinion (in form
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