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|   | a. | Borrower, Existing Guarantor and Transferee confirm and agree that as of the date hereof, the outstanding principal balance under the Loan is $6,500,000.00 (after giving effect to the principal repayment made to Lender on the date hereof). |
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|   | b. | Borrower, Existing Guarantor and Transferee confirm and agree that Borrower has made the monthly installment of principal and interest under the Note through and including the payment due on June 30, 2010. |
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|   | c. | Borrower and Existing Guarantor confirm that no event of default has occurred under the Loan, and no event has occurred or condition exists that, with notice and/or the passage of time, would constitute an event of default under the Loan. |
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|   | d. | Lender confirms that to its actual knowledge no event of default exists under the Loan as of the date hereof. |
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|   | e. | Borrower and Transferee ratify, affirm and acknowledge that the Note and the other Loan Documents represent their valid and enforceable and collectible obligations, and that there are no existing claims, defenses (personal or otherwise) or rights of setoff with respect thereto. |
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|   | f. | Existing Guarantor ratifies, affirms and acknowledges that the Guaranty represents valid and enforceable and collectible obligations, and that there are no existing claims, defenses (personal or otherwise) or rights of setoff with respect thereto. |
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|   | g. | Borrower acknowledges and confirms that there are no subordinate liens of any kind covering or related to the Property, nor are there any mechanic’s liens or liens or unpaid taxes or assessments encumbering the Property, nor has notice of a lien or notice of intent to file a lien been received. |
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|   | g. | Except as set forth in Section 7 below, Borrower and Transferee acknowledge and agree that this Agreement in no way releases, relinquishes or otherwise affects the liens, security interests and rights created by or arising under the Loan Documents or the priority thereof or Borrower's primary liability thereunder.  Such liens, security interests and rights are hereby ratified, confirmed, renewed and extended in all respects. |
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|   | h. | Except as set forth in Section 8 below, Existing Guarantor acknowledges and agrees that this Agreement in no way releases, relinquishes or otherwise affects rights created by or arising under the Loan Documents or the Guaranty or the Existing Guarantor's liability thereunder.  Such rights are hereby ratified, confirmed, renewed and extended in all respects. |
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|   | i. | Transferee acknowledges that there is no simultaneous placement of any secondary financing on the Property in connection with this transfer to, and the assumption of the Loan by, Transferee. |
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|   | j. | Borrower represents and warrants to Lender that immediately prior to the transfer of the Property to Transferee, Borrower is in undisputed possession of the Property, subject to the rights of Transferee under a management agreement dated as of December 22, 2000 between Borrower and Transferee and Borrower has not entered into binding contracts for the sale of any portion of the Property or its interest therein. |
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|   | k. | Borrower represents and warrants to Lender that to the best of Borrower's knowledge, there are no mechanics' liens against the Property; to the best of Borrower's knowledge, there are no unpaid bills or claims outstanding for labor or materials incident to any construction, repairing, renovating or improving of the improvements located upon said Property (the "Improvements") performed by or on behalf of persons or entities other than Borrower; there are no unpaid bills or claims outstanding for labor or materials incident to any construction, repairing, renovating or improving of the Improvements located upon said Property performed by or on behalf of Borrower; no person, firm or corporation has been employed, engaged or contracted with by or on behalf of Borrower to furnish material or perform labor for the improvement of the Property wherein such materials have not been furnished or such labor has not been performed more than ninety (90) days prior to the date hereof, or that if there are same, all have been fully paid, and no cautionary notices of any kind have been served with respect to labor performed or materials furnished upon the Property. |
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|   | h. | Borrower represents and warrants to Lender that there are no matters pending against Borrower which could give rise to a lien that would attach on the Property, or its interest therein. |
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|   | a. | Lender hereby consents to and approves the conveyance and transfer of the Property from Borrower to Transferee and the assumption by Transferee of the obligations of Borrower under the Loan Documents, as amended hereby, subject to the terms hereof and provided, further, that such consent shall not be deemed or construed as (i) a waiver of any provision requiring Lender's consent under the Loan Documents; (ii) a consent to any amendment or extension of the Loan Documents (iii) except as set forth in Section 5(d) below, a consent to any subsequent assignment or transfer of any of the Loan Documents or the Property or any portion thereof  or (iv) except as set forth in Section 7 below, a waiver, release, diminishing or derogation of Borrower’s primary liability under the Loan Documents. |
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|   | b. | Except as set forth in Section 7 below, Borrower acknowledges and agrees that Borrower is and remains primarily liable for all obligations under the Loan Documents and the assignment and assumption contemplated in this Agreement in no way affects, waives, releases, diminishes or derogates from such liability of Borrower. |
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|   | c. | Existing Guarantor acknowledges and agrees that Existing Guarantor  remains primarily liable for all obligations under the Guaranty and, except as set forth in Section 8 below, the assignment and assumption of the Loan Documents contemplated in this Agreement in no way affects, waives, releases, diminishes or derogates from such liability of Existing Guarantor. |
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|   | d. | Lender and Transferee agree that Section 12 of the Mortgage is hereby deleted and replaced with the following in lieu thereof: |
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|   | "12. No Sale or Further Encumbrance. Without the prior written consent of Mortgagee in each instance, Mortgagor shall not cause or permit any transfer of the Mortgaged Property or any part thereof, whether voluntarily, involuntarily or by operation of law, nor shall Mortgagor enter into any agreement or transaction to transfer, or accomplish in form or substance a transfer, of the Mortgaged Property, unless the Loan is repaid in full in connection with such sale or transfer.  A "transfer" of the Mortgaged Property includes:  (a) the direct or indirect sale, transfer or conveyance of the Mortgaged Property or any portion thereof or interest therein; (b) the execution of an installment sale contract or similar instrument affecting all or any portion of the Mortgaged Property; (c) if Mortgagor, or any general partner or member of Mortgagor, is a corporation, partnership, limited liability company or other business entity, the transfer (whether in one transaction or a series of transactions and whether a direct or indirect transfer) of any stock, partnership, limited liability company or other ownership interests in such corporation, partnership, limited liability company or entity; (d) if Mortgagor or any member of Mortgagor is a corporation, the creation or issuance of new stock by which an aggregate of more than 15% of such corporation's stock shall be vested in a party or parties who are not now stockholders; and (e) an agreement by Mortgagor leasing all or a substantial part of the Mortgaged Property for other than actual occupancy by a space tenant thereunder or a sale, assignment or other transfer of or the grant of a security interest in and to any leases.  Notwithstanding the foregoing, the transfer of a controlling ownership interest in Sonesta International Hotels Corp. (the "Sonesta Guarantor") shall not constitute a default under the Loan, provided that: (i) no Event of Default shall have occurred and remain uncured; (ii) the proposed transferee (“Assignee"), shall be reputable entity(ies) or person(s) of good character, creditworthy, with sufficient financial worth considering the obligations assumed and undertaken, as evidenced by financial statements and other information reasonably requested by Mortgagee; (iii) the Assignee shall have sufficient experience in the ownership and management of full service upscale hotels, and the Mortgagee shall be provided with reasonable evidence thereof; (iv) the Mortgagee has received a written request for approval from the Mortgagor at least thirty (30) days prior to the proposed transfer (including a description of the proposed terms of the transfer), together with a diagram showing the legal structure of the Assignee, after the contemplated transfer, and a list of the names, types of interests and ownership percentages of all persons to have ownership interests in any of the foregoing or any constituent entity thereof, financial statements for all such entities and an administrative fee of $5,000.00, which shall be deemed fully earned on the date of receipt and shall be retained by the Mortgagee regardless of whether or not the transfer occurs and whether or not approval is given; (v) Mortgagee and its counsel have received certification from the Mortgagor, Sonesta Guarantor and the Assignee that the proposed terms of the transfer described in subparagraph (iv) are the actual terms of the transfer and shall have received such other documents which the Mortgagee may reasonably require, all in form and substance reasonably satisfactory to Mortgagee, at least thirty (30) days prior to the proposed transfer; (vi) the Assignee shall have executed and delivered to Mortgagee a guaranty in form and substance reasonably acceptable to Mortgagee; and (vii) Mortgagee shall have received payment of all costs and expenses reasonably incurred by Mortgagee in connection with such transfer (including reasonable attorney's fees and costs). |
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|   | e. | Lender and Transferee agree that Section [___] of the [_____________] is hereby deleted [Note: Will insert specific DSCR and LTV provisions]. |
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|   | f. | Lender and Transferee agree that Section 6 of the Mortgage is hereby deleted and replaced with the following in lieu thereof: |
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|   | "6. Taxes and Insurance Escrow.  If required by Mortgagee at any time after the occurrence of an Event of Default, Mortgagor shall pay to Mortgagee at the time of each installment of interest and principal is due under the Note, and commencing with the first payment due after the date of such request, a sum equal to (a) the amount of the next installment of taxes and assessments levied or assessed against the Property, and/or (b) the premiums which will next become due on the insurance policies required by this Mortgage, all in amounts as estimated by Mortgagee, less all sums already paid therefor or deposited with Mortgagee for the payment thereof, divided by the number of payments to become due before two (2) months prior to the date when such taxes and assessments and/or premiums, as applicable, will become due, such sums to be held by Mortgagee to pay the same when due.  If such escrow funds are not sufficient to pay such taxes and assessments and/or insurance premiums, as applicable, as the same become due, Mortgagor shall pay to Mortgagee, upon request, such additional amounts as Mortgagee shall estimate to be sufficient to make up any deficiency.  No amount paid to Mortgagee hereunder shall be deemed to be trust funds but may be commingled with general funds of Mortgagee and no interest shall be payable thereon.  Upon the occurrence of an Event of Default, Mortgagee shall have the right, at its sole discretion, to apply any amounts so held against the obligations or indebtedness of Mortgagor to Mortgagee." |
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|    __________________________ __________________________[Print Name] __________________________ __________________________[Print Name] | LENDER: OCEAN BANK,a Florida banking corporation  By:________________________________Name:______________________________Title:______________________________ |
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| WITNESS:                                                                       | BORROWER:                                                                                                                                                                                                                                                                                                  |
|--------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| __________________________________Name:__________________________________Name: | MUTINY ON THE PARK, LTD.,a Florida limited partnership By:           Flagler on the Park, Inc.,a Florida corporation,Its General Partner  By:____________________________Name:__________________________Its:_____________________________ |
|                                                                           |                                                                                                                                                                                                                                                                                                            |

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| WITNESS:                                                                       | TRANSFEREE:                                                                                                                                                      |
|--------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| __________________________________Name:__________________________________Name: | SONESTA COCONUT GROVE, INC.,a Florida corporation  By:________________________________Name:_____________________________Its:_______________________________ |
|                                                                           |                                                                                                                                                                  |

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| WITNESS:                                                                       | EXISTING GUARANTOR:                                      |
|--------------------------------------------------------------------------------|---------------------------------------------------------------|
| __________________________________Name:__________________________________Name: |  ___________________________RICARDO DUNIN, an individual |
|                                                                           |                                                          |

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| 1. | the Note. |
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| 2. | Amended and Restated Mortgage and Security Agreement and Notice of Future Advance and Extension Agreement, dated as of the Original Closing Date, from Borrower to Lender, recorded in Official Records Book 26634 at page 281 of the public records of Miami-Dade County, Florida (the "Mortgage"). |
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| 3. | Assignment of Leases and Rents, dated as of the Original Closing Date, from Borrower to Lender, recorded in Official Records Book 26634 at page 308 of the public records of Miami-Dade County, Florida (the "Assignment of Leases"). |
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| 4. | Assignment of Development Documents and Covenants dated as of the Original Closing Date from Borrower to Lender, recorded in Official Records Book 26634 at page 318 of the public records of Miami-Dade County, Florida. |
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| 5. | Uniform Commercial Code Fixture Filing from Borrower as debtor and Lender as secured party recorded in Official Records Book 26634 at Page 323 of the public records of Miami-Dade County, Florida. |
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| 6. | Credit Agreement dated as of the Original Closing Date between Borrower and Lender (the "Credit Agreement"). |
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