Exhibit 10(iii)

 

ENVIRONMENTAL INDEMNIFICATION AGREEMENT

 

This Environmental Indemnification Agreement (this “Agreement”) is made and
entered into effective for all purposes as of the 20th day of November, 2003, by
the parties signatory hereto or to an Accession Agreement (as hereinafter
defined) (collectively, the “Indemnitor” whether one or more), to and for the
benefit of BANK OF MONTREAL, CHICAGO BRANCH as Administrative Agent (the
“Administration Agent”), FLEET NATIONAL BANK, as Syndication Agent (the
“Syndication Agent”), HARRIS NESBITT CORP., as Co-Arranger and Co-Book Manager
(the “First Arranger”), FLEET SECURITIES, INC., as Co-Arranger and Co-Book
Manager (the “Second Arranger”), and the banks and other lenders named in the
Credit Agreement herein described (the “Banks”).

 

INTRODUCTION

 

WHEREAS, this Agreement is given in connection with that Senior Unsecured Credit
Agreement dated as of November 20, 2003 (“Credit Agreement”), among LASALLE
HOTEL OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (the
“BORROWER”), Administrative Agent, Syndication Agent, First Arranger, Second
Arranger and the banks and other lenders party thereto (collectively the
“Banks”) pursuant to which the Banks are making, subject to future advances,
loans (and issuing letters of credit) in an amount up to $215,000,000, which
amount may be increased under certain conditions to $300,000,000 (collectively,
the “Loans’”) to Borrower as more specifically described therein;

 

WHEREAS, the Borrower and Subsidiaries of the Borrower now or hereafter will own
certain Hotel Properties which include without limitation the Initial
Properties, the Future Properties, the Permitted Non-Eligible Properties and the
properties owned by the Permitted Other Subsidiaries (said properties together
with all property owned by the Participating Lessees in connection with such
Hotel Properties, all rights and appurtenances to such Hotel Properties and all
improvements presently located or hereafter constructed on such Hotel Properties
are hereinafter collectively called the “Properties”, and each a “Property”);

 

WHEREAS, the Borrower is the principal financing entity for capital requirements
of its Subsidiaries, and from time to time the Borrower has made and will
continue to make capital contributions and advances to its Subsidiaries,
including the Subsidiaries which are parties hereto. Other than the Parent, each
Indemnitor is a direct or indirect subsidiary of the Borrower. Each Indemnitor
will derive substantial direct and indirect benefit from the transactions
contemplated by the Credit Agreement; and

 

WHEREAS, the Banks have required the execution and delivery of this Agreement as
a condition precedent to the execution of the Credit Agreement. The Banks would
not be willing to execute the Credit Agreement in the absence of the execution
and delivery by Indemnitor of this Agreement.

 

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IN WITNESS WHEREOF, Indemnitor has caused this Agreement to be executed as of
the day and year first written above.

 

INDEMNITORS:

LASALLE HOTEL OPERATING PARTNERSHIP, L.P.,

    a Delaware limited partnership

By:  

LASALLE HOTEL PROPERTIES, a Maryland

real estate investment trust, its general partner

By:  

 

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Name: Hans Weger

Title: Chief Financial Officer

Address:

 

4800 Montgomery Lane, Suite M25

Bethesda, Maryland 20814

Attn: Mr. Hans S. Weger

 

Signature Page of Environmental Indemnification Agreement

 

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LASALLE HOTEL PROPERTIES, a Maryland real

    estate investment trust

By:  

 

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Name: Hans Weger

Title: Chief Financial Officer

Address:

 

4800 Montgomery Lane, Suite M25

Bethesda, Maryland 20814

Attn: Mr. Hans S. Weger

 

Signature Page of Environmental Indemnification Agreement

 

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I & G CAPITOL, LLC

LHO WASHINGTON HOTEL ONE, L.L.C.

LHO WASHINGTON HOTEL TWO, L.L.C.

LHO WASHINGTON HOTEL THREE, L.L.C.

LHO WASHINGTON HOTEL FOUR, L.L.C.

LHO WASHINGTON FIVE LESSEE, L.L.C.

LHO VIKING HOTEL, L.L.C.

LHO WASHINGTON HOTEL SIX, L.L.C.

By:  

LaSalle Hotel Operating Partnership, L.P.

a Delaware limited partnership, its

managing member

   

By:

 

LaSalle Hotel Properties,

its general partner

       

By:

 

 

--------------------------------------------------------------------------------

       

Name: Hans Weger

Title: Chief Financial Officer

Address:

 

4800 Montgomery Lane, Suite M25

Bethesda, Maryland 20814

Attn: Mr. Hans S. Weger

 

Signature Page of Environmental Indemnification Agreement

 

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LASALLE HOTEL LESSEE, Inc.

LASALLE WASHINGTON ONE LESSEE, Inc.

LASALLE WASHINGTON TWO LESSEE, Inc.

LASALLE WASHINGTON THREE LESSEE, Inc.

LASALLE WASHINGTON FOUR LESSEE, Inc.

LHO WASHINGTON SIX LESSEE, Inc.

By:

 

 

--------------------------------------------------------------------------------

Name: Hans Weger

Title: Chief Financial Officer

Address:

 

4800 Montgomery Lane, Suite M25

Bethesda, Maryland 20814

Attn: Mr. Hans S. Weger

 

Signature Page of Environmental Indemnification Agreement