Common use of Total Liabilities to Gross Asset Value Clause in Contracts

Total Liabilities to Gross Asset Value. The Parent shall not at any time permit Total Liabilities divided by Gross Asset Value to be greater than 53% (“ Total Liabilities to Gross Asset Value Percent”); provided, however, in the event the Borrower purchases a Hotel Property in the fourth Fiscal Quarter of 2005, the Total Liabilities to Gross Asset Value Percent will not be greater than 58% until March 31, 2006, 55% until June 30, 2006 and 53% thereafter. If the purchase is delayed until the first Fiscal Quarter of 2006, the 53% Total Liabilities to Gross Asset Value Percent will be in effect until the Fiscal Quarter of acquisition and then the 58% and 55% Total Liabilities to Gross Asset Value Percent will be in effect, respectively, for the next two calendar Fiscal Quarters following such acquisition, and then 53% thereafter. If the 58% Total Liabilities to Gross Asset Value Percent is ever exceeded during its required two Fiscal Quarters and the 55% Total Liabilities to Gross Asset Value Percent is ever exceeded during its required one Fiscal Quarter, the Parent will have up to 45 days after the due date for delivery of the financial statements for the Fiscal Quarter in which such event occurred to cure the Default, provided, however, that during any period that the Total Liabilities to Gross Asset Value Percent is ever exceeded, no additional Advances will be made hereunder and the Applicable Margins will be as follows until the Total Liabilities to Gross Asset Value Percent is as required hereunder: 1.50% 3.50 % .75 % The Total Liabilities to Gross Asset Value Percent then reduces to 53% thereafter. From July 1, 2006 (assuming a purchase in the fourth Fiscal Quarter of 2005) or from October 1, 2006 or from January 1, 2007 (assuming either a first or second Fiscal Quarter 2006 purchase, respectively) until Maturity Date, the Parent will be given only one instance to exceed the 53% maximum Total Liabilities to Gross Asset Value Percent. The Parent will have up to 90 days to cure the Default. No advances will be made during the times when this covenant is exceeded. Notwithstanding anything to the contrary contained herein, if the Total Liabilities to Gross Asset Value Percent ever exceeds 65%, an immediate Event of Default will be deemed to have occurred hereunder. If Borrower or a wholly owned Subsidiary of Borrower elects to acquire Boston ▇▇▇▇▇, then for a period of twelve (12) full calendar months from the date of such acquisition, the Gross Asset Value of Boston ▇▇▇▇▇ for the purposes of this covenant will be deemed to be $60,000,000; and thereafter, the Gross Asset Value of Boston ▇▇▇▇▇ will be as otherwise defined in the definition of Gross Asset Value.

Total Liabilities to Gross Asset Value. The Parent shall not at any time permit Total Liabilities divided by Gross Asset Value to be greater than 53% (“ “Total Liabilities to Gross Asset Value Percent”); provided, however, in the event the Borrower purchases a Hotel Property in the fourth third Fiscal Quarter of 20052006, the Total Liabilities to Gross Asset Value Percent will not be greater than 58% until March December 31, 2006, 55% until June 30March 31, 2006 2007 and 53% thereafter. If the purchase is delayed until the first Fiscal Quarter of 2006, the 53% Total Liabilities to Gross Asset Value Percent will be in effect until the Fiscal Quarter of acquisition and then the 58% and 55% Total Liabilities to Gross Asset Value Percent will be in effect, respectively, for the next two calendar Fiscal Quarters following such acquisition, and then 53% thereafter. If the 58% Total Liabilities to Gross Asset Value Percent is ever exceeded during its required two Fiscal Quarters and the 55% Total Liabilities to Gross Asset Value Percent is ever exceeded during its required one Fiscal Quarter, the Parent will have up to 45 days after the due date for delivery of the financial statements for the Fiscal Quarter in which such event occurred to cure the Default, provided, however, that during any period that the Total Liabilities to Gross Asset Value Percent is ever exceeded, no additional Advances will be made hereunder and the Applicable Margins will be as follows until the Total Liabilities to Gross Asset Value Percent is as required hereunder: 1.50% 3.50 % .75 % The Total Liabilities to Gross Asset Value Percent then reduces to 53% thereafter. From July 1, 2006 (assuming a purchase in the fourth Fiscal Quarter of 2005) or from October 1, 2006 or from January April 1, 2007 (assuming either a first or second Fiscal Quarter 2006 purchase, respectively) until the Maturity Date, the Parent will be given only one instance to exceed the 53% maximum Total Liabilities to Gross Asset Value Percent. The Parent will have up to 90 days to cure the Default. No advances will be made during the times when this covenant is exceeded. Notwithstanding anything to the contrary contained herein, if the Total Liabilities to Gross Asset Value Percent ever exceeds 65%, an immediate Event of Default will be deemed to have occurred hereunder. If Borrower or a wholly owned Subsidiary of Borrower elects to acquire Boston ▇▇▇▇▇, then for For a period of twelve (12) full calendar months from the date of such acquisitionthe acquisition of the Embassy Suites Boston ▇▇▇▇▇ Airport Hotel (“Boston ▇▇▇▇▇”), the Gross Asset Value of Boston ▇▇▇▇▇ for the purposes of this covenant will be deemed to be $60,000,00055,700,000; and thereafter, the Gross Asset Value of Boston ▇▇▇▇▇ will be as otherwise defined in the definition of Gross Asset Value.