Document:

Purchase and Sale Agreement

 EXHIBIT 10.2 
 Execution Counterpart 
 THE FAIRMONT SCOTTSDALE PRINCESS 

 

 

 PURCHASE AND SALE AGREEMENT 
 AMONG 
 SHR SCOTTSDALE, L.L.C., 

a Delaware limited liability company, 
 and 
 DTRS SCOTTSDALE, L.L.C., 

a Delaware limited liability company, 
 and 
 SHR SCOTTSDALE Z, L.L.C.,

 a Delaware limited liability company, 
 COLLECTIVELY, AS SELLER 
 AND 

FMT SCOTTSDALE OWNER, LLC 
 a Delaware limited liability company 
 and 

WALTON/SHR FPH, LLC 
 a Delaware limited liability company 
 COLLECTIVELY, AS PURCHASER 

June 9, 2011 

 PURCHASE AND SALE AGREEMENT 

THIS PURCHASE AND SALE AGREEMENT (the “Agreement”) is made to be effective as
of the 9th day of June, 2011 (the “Effective
Date”), by and among: 
 (1) SHR SCOTTSDALE, L.L.C., a Delaware limited
liability company (“SHR”), DTRS SCOTTSDALE, L.L.C., a Delaware limited liability company (“DTRS”), and SHR SCOTTSDALE Z, LLC, a Delaware limited liability
company (“SHR Z”) (SHR, DTRS, and SHR Z are collectively referred to as, “Seller”), each having an office at 200 West Madison Street, Suite 1700, Chicago, Illinois 60606, and 

(2) FMT SCOTTSDALE OWNER, LLC, a Delaware limited liability company (“New
Hotel Owner”), WALTON/SHR FPH, LLC, a Delaware limited liability (“New Operating Tenant”) (New Hotel Owner and New Operating Tenant are herein collectively referred to as
“Purchaser”), each having an office at 900 North Michigan Avenue, Suite 1900, Chicago, Illinois 60611. 

ARTICLE I 

PURCHASE AND SALE 
 1.1 Agreement of Purchase and Sale. Subject to the terms and on the conditions set forth in this Agreement (including, without limitation, Article III), Seller agrees to sell and convey and
Purchaser agrees to purchase the following: 
 (a) (i) SHR’s fee simple ownership of
that certain land more particularly described on Exhibit A-1 (the “Hotel Fee Component”), (ii) SHR’s leasehold interest under the Ground Lease (as defined below) in that certain land more particularly
described on Exhibit A-2, and (iii) SHR Z’s fee simple ownership of that certain land more particularly described on Exhibit A-3 (the “Vacant Land”), each situated in Scottsdale, Arizona, and together
with all and singular the rights and appurtenances pertaining to such land, including any appurtenant easements and any right, title and interest of Seller in and to adjacent streets, alleys or rights-of-way (the property described in this clause
(a) of Section 1.1 is referred to collectively as the “Land”). The term “Ground Lease” shall refer to that certain Lease dated as of December 30, 1985, by and between the City of
Scottsdale, Arizona, as landlord (the “City”), and the Scottsdale Princess Partnership, as tenant, as amended by amendments dated as of November 17, 1986, April 4, 1995, December 23, 2002 (including
both a 3rd amendment and a Wall and Sign Agreement) and
reflected in a Memorandum of Ground Lease and Right of First Refusal dated as of November 21, 1986; 
 (b)
the buildings, structures, fixtures and other improvements on the Land, including, without limitation, that certain hotel facility (“Hotel”) having approximately 651 guest rooms, commonly known as “The Fairmont
Scottsdale Princess”, and related facilities and improvements (collectively, the “Improvements”); 
 (c) all tangible personal property upon the Land or within the Improvements, used in connection with the operation of the Land and the Improvements, but excluding those items described on Exhibit B
(the property described in clause (c) of this Section 1.1 is referred to collectively as the “Personal Property”); 

 (d) all of Seller’s right, title and interest in and to any leases,
subleases, licenses, concessions or similar agreements as to which it is a lessor, sub-lessor, or licensor, including any security deposits held by or on behalf of Seller (collectively, the “Leases”) more fully described on
Exhibit C-1 (the “Lease Schedule”); 
 (e) all plans and specifications, blue
prints, architectural plans, engineering diagrams and similar items located at the Hotel which relate exclusively to the Hotel, to the extent the same are transferable (the “Plans and Specifications”); 

(f) all of Seller’s right, title and interest in and to (i) all contracts and agreements as more fully
described on Exhibit C-2 (collectively, the “Operating Agreements”) relating to the upkeep, repair, maintenance or operation of the Land, Improvements or Personal Property which will extend beyond the date of
“Closing” (as such term is defined in Section 3.1) and any deposit held thereunder, (ii) all existing warranties and guaranties issued to Seller in connection with the Improvements or the Personal Property, and
(iii) all leases and purchase money security agreements for any equipment, machinery, vehicles, furniture or other personal property located at the Hotel and any deposits made by or on behalf of Seller as described on Exhibit C-3 (the
“Equipment Leases”) (the property described in clause (f) of Section 1.1 is referred to collectively as the “Intangibles”); 

(g) all transferable consents, authorizations, variances or waivers, licenses, permits, certificates and approvals from
any governmental or quasi-governmental agency, department, board, commission, bureau or other entity or instrumentality relating to the Land or the Improvements (collectively, the “Licenses”), including, without limitation,
those with respect to use, utilities, building, fire, life safety, traffic and zoning (but excluding any alcoholic beverage licenses) and any deposits made by or on behalf of Seller; 

(h) all of Seller’s right, title and interest in and to all inventories of supplies used in connection with the
operation of the Hotel, including, without limitation, paper goods, brochures, office supplies, unopened food and beverage inventory, chinaware, glassware, flatware, table linens, soap, gasoline, fuel oil, and other operational, engineering,
maintenance, cleaning, housekeeping, and guest supplies currently located at the Hotel or ordered for future use at the Hotel as of Closing, subject to depletions, replacements and additions in the ordinary course of operating the Hotel (provided
that Seller shall maintain its normal replenishment and replacement expenditures for such inventories until the date of Closing), and subject to any applicable transfer and use restrictions set forth in the Operating Agreements or the Leases
(collectively, the “Inventory”); 
 (i) the books, records, files, guest registers,
rental and reservation records, any customer or frequent guest lists of Seller, maintenance records and any plans, specifications and operating manuals of or held in connection with the operation and maintenance of the Hotel (collectively, the
“Books”), exclusive of (i) original Books which Seller desires to retain, provided that Seller provides copies thereof to Purchaser, (ii) Seller’s income tax and accounting records, except to the extent such
records relate solely to the Hotel, and (iii) any “Proprietary Materials” of the Operator (as defined below) defined in the Hotel Management Agreement (as defined below); 

  
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 (j) the advance reservations and bookings for the Hotel, as the same may be
amended, canceled and renewed (the “Reservations”) and advance deposits made in respect thereof (the “Reservation Deposits”); 

(k) all of Seller’s right, title and interest in and to all United States, state and foreign trademarks, service
marks, certification marks, collective marks, trade names, corporate names, d/b/as, business names, fictitious business names, internet domain names, trade styles, logos, other source or business identifiers, designs and general intangibles of a
like nature, rights of publicity and privacy pertaining to the names, likeness, signature and biographical data of natural persons, and, with respect to any and all of the foregoing: (i) all registrations and applications therefor,
(ii) the goodwill of the business symbolized thereby, (iii) all rights corresponding thereto throughout the world, (iv) all rights to sue for past, present and future infringement or dilution thereof or for any injury to goodwill,
(v) all licenses, claims, damages, and proceeds of suit arising therefrom, and (vi) all payments and rights to payments arising out of the sale, lease, license assignment or other disposition thereof, excepting, however, any
Operator Names, Operator Symbols or other Proprietary Materials of Operator, all as defined in the Hotel Management Agreement. The property described in this clause (k) of Section 1.1 is referred to as the “Intellectual
Property”; 
 (l) all of Seller’s right title and interest to the assets listed on the Balance
Sheet attached as SCHEDULE 1 (the “Balance Sheet”), which Balance Sheet shall be updated at Closing, including, without limitation, accounts receivable, cash including cash on hand or on deposit in any
house bank, operating account, other account or reserve maintained by Seller or on Seller’s behalf in connection with the Hotel (“Balance Sheet Assets”); 

(m) all of DTRS’s right, title and interest in and to that certain Hotel Management Agreement dated as of
September 1, 2006 between DTRS and Fairmont Hotels & Resorts (U.S.) Inc. (“Operator”), as amended by a First Amendment to Hotel Management Agreement made as of
                    , 2007 [sic], a Second Amendment to Hotel Management Agreement made as of January 1, 2010, and a letter agreement
dated June 9, 2011 (collectively, the “Hotel Management Agreement”); 
 (n) all of
DTRS’s right, title and interest in and to that certain Hotel Employment Agreement dated as of September 1, 2006 (the “Employment Agreement”) between DTRS and Scottsdale Princess Partnership, a general partnership
formed under the laws of Arizona (the “Employment Company”) (the Hotel Management Agreement and the Employment Agreement are herein collectively referred to as the “Hotel Agreements”; the Operator and
the Employment Company are herein collectively referred to as the “Hotel Operating Parties”); and 
 (o) all of Seller’s right, title and interest in (i) to that certain Bar Management Agreement dated February 1, 2008 among Seller, Operator and Gerber Group Scottsdale, LLC
(“Gerber”) (the “Bar Agreement”), (ii) certain Restaurant Management Agreement dated February 11, 2008 among Seller, Operator and The Mina Group LLC (“Mina”) (the “Restaurant
Agreement”), and (iii) that certain the Golf Facility Reservations and Use and Licensing Agreement dated December 20, 1985 among seller, Operator and PGA Tour, Inc. (“PGA”) (as amended, “Golf
Agreement”). 

  
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 1.2 Property Defined. The property described in
Section 1.1 is referred to collectively as the “Property.” 
 1.3
Permitted Exceptions. The Property shall be conveyed subject to the matters set forth in the Title Policy attached as SCHEDULE 2 (collectively, the “Permitted Exceptions”). 

1.4 Debt. 
 (a) Subject to Section 3.10(c), the Property shall be conveyed subject to all indebtedness (the “Mortgage Indebtedness”) described and evidenced by that certain Loan
and Security Agreement dated as of September 1, 2006 (as amended, the “Mortgage Loan Agreement”) between SHR and Citigroup Global Markets Realty Corp. (together with its successors and assigns, the
“Lender”). 
 (b) FMT Scottsdale Holdings, LLC, a Delaware limited partnership (the
“Master Partnership”) shall at Closing purchase from the owner and holder thereof (the “Mezzanine Lender”) all of the right, title, and interest of the Lender in the indebtedness (the
“Mezzanine Indebtedness”) described and evidenced by that certain Mezzanine Loan and Security Agreement dated as of May 9, 2007 (as amended, the “Mezzanine Loan Agreement”), between SHR Scottsdale
Mezzanine, L.L.C. (the “Mezzanine Borrower”) and the predecessor-in-interest to the Mezzanine Lender. 
 (c) Immediately upon the acquisition by the Master Partnership of the Mezzanine Indebtedness, the Mezzanine Borrower shall assign to FMT Scottsdale Mezzanine, LLC, a Delaware limited liability company
(the “New Mezzanine Borrower”), and the New Mezzanine Borrower shall assume from Mezzanine Borrower, all of Mezzanine Borrower’s right, interest, and obligation with respect to the Mezzanine Indebtedness. 

1.5 Purchase Price. Seller shall sell and Purchaser shall purchase the Property for consideration equal to: (the
“Purchase Price”): 
 (a) EIGHT HUNDRED DOLLARS ($800.00); 

(b) the assumption of the Mortgage Indebtedness; 

(c) the assumption of all obligations accrued or outstanding on the Closing Date (as defined in Section 3.1)
under and for the Leases, Operating Agreements, Equipment Leases, Licenses, Reservations, and Hotel Agreements, and, 
 (d) the assumption of all other liabilities as shown on or reserved in the Balance Sheet. 
 Seller and Purchaser shall complete and sign an Affidavit of Property Value required in connection with the transaction setting forth information consistent with this Section 1.5. 

1.6 Payment of Purchase Price. The Purchase Price shall be payable in full at Closing by: 

  
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 (a) the wire transfer of immediately available federal funds to a bank
account designated by Chicago Title Insurance Company (“Title Company”) in writing to Purchaser prior to the Closing; and, 
 (b) the assumption of the instruments and obligations set forth in Section 1.5(b) – Section 1.5(d) (collectively, the “Assumed Obligations”).

 ARTICLE II 
 TITLE AND SURVEY 
 2.1 Title Examination; Commitment for
Title Insurance. Purchaser obtained from the Title Company, a Report of Title dated April 1, 2011 and issued under Order No. 21120125 (the “Title Commitment”) covering the Property. Purchaser shall at Closing
obtain from the Title Company an fee and leasehold owner’s policy of title insurance pursuant to Section 2.4. 
 2.2 Survey. The parties acknowledge that Seller has delivered to Purchaser and the Title Company Seller’s existing ALTA survey prepared by Wood/Patel dated March 28, 2011 of the Property
(the “Survey”). Purchaser may, at its sole cost and expense, update and recertify the Survey. 
 2.3 Intentionally Omitted. 
 2.4 Conveyance of
Title. At Closing, SHR and SHR Z, respectively, shall convey and transfer to Purchaser such title to the Property as will enable the Title Company to issue to Purchaser an ALTA extended coverage fee and leasehold owner’s policy of title
insurance covering the Property, in such amount as Purchaser may elect and substantially in the form attached as SCHEDULE 2 (the “Title Policy”). 

2.5 Certificates and Affidavits. In connection with issuance of the Title Policy, Seller shall deliver to Title
Company customary certificates and affidavits to the Title Company, including certificates and affidavits relating to the status of leases and mechanics’ liens and other matters necessary to cause the Title Company to issue the Title Policy,
but shall not be required to escrow any monies with the Title Company in connection therewith. 
 ARTICLE III 

CLOSING 
 3.1 Time. The Parties shall conduct an escrow closing (the “Closing”) on June 9, 2011, as the same may be extended as provided in this Agreement (the
“Closing Date”) or such other earlier date as to which the parties may agree. At Closing, Seller and Purchaser shall perform the obligations set forth in, respectively, Section 3.2 and Section 3.3, the
performance of which obligations shall be concurrent conditions. 
 3.2 Seller’s Obligations at
Closing. At the Closing, SHR, DTRS and/or SHR Z (as applicable) shall deliver to Title Company, or shall cause to be delivered to the Title Company (or to such other person or entity as the Purchaser and Seller may agree): 

  
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 (a) duly executed and notarized deeds, in the form of Exhibit D-1
with the necessary changes to reflect the correct Seller (the “Deed”), conveying the Hotel Fee Component and the Vacant Land, subject to the Permitted Exceptions; 

(b) four (4) duly executed and notarized counterparts from SHR of an assignment and assumption of the Ground Lease
in the form of Exhibit D-2 (the “GL Assignment”); 
 (c) four (4) duly
executed counterparts from SHR and DTRS of a bill of sale in the form of Exhibit E (the “Bill of Sale”); 
 (d) four (4) duly executed counterparts from SHR and DTRS of an assignment and assumption agreement with respect to the Leases in the form of Exhibit F (the “Assignment and
Assumption of Leases”); 
 (e) four (4) duly executed counterparts from SHR and DTRS of an
assignment and assumption agreement with respect to the Operating Agreements, the Licenses, Equipment Leases, other Intangibles, the Intellectual Property, the Books the Reservations, Reservation Deposits, and all other assets and liabilities shown
on the Balance Sheet, in the form of Exhibit G (the “Assignment and Assumption – General”); 
 (f) a certificate or registration of title for any owned vehicle or other Personal Property included in the Property which requires such certification or registration, duly executed, conveying such
vehicle or such other Personal Property to Purchaser; 
 (g) notices duly executed by DTRS in form set forth as
Exhibit H which Purchaser shall send to tenants informing them of the sale of the Property and of the assignment to Purchaser of Seller’s interest in, and obligations under, the Leases (including, if applicable any security deposits) and
directing that all rent and other sums payable after the Closing under the Leases shall be paid as set forth in the notice (the “Tenant Notices”); 

(h) four (4) duly executed counterparts of affidavits stating that neither SHR nor SHR Z is a “foreign
person” as defined in the Federal Foreign Investment in Real Property Tax Act of 1980 and the 1984 Tax Reform Act in the form of Exhibit I (the “FIRPTA Affidavit”); 

(i) four (4) duly executed counterparts from DTRS of an assignment and assumption agreement with respect to the
Hotel Agreements in the form of Exhibit J (the “Assignment of Hotel Agreements”); 
 (j) four (4) duly executed counterparts from SHR Advisory, L.L.C., a Delaware limited liability company of an Asset Management Agreement in the form of Exhibit K (the “Asset
Management Agreement”); 
 (k) four (4) duly executed counterparts from SHR Scottsdale
Investor LLC, a Delaware limited liability company (“SHR Investor”) of the agreement governing the rights and obligations of the parties with respect to the Master Partnership in the form of Exhibit L-1 (the
“Master Partnership Agreement”) and SHR Investor shall contribute its initial Capital Contribution (as defined in the Master Partnership Agreement) as set forth in Section 4.01 of the Master Partnership Agreement;

  
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 (l) four (4) duly executed counterparts from SHC DTRS, Inc., a Delaware
corporation, of the agreement governing the rights and obligations of the parties with respect to the New Operating Tenant in the form of Exhibit L-2 (the “New Operating Tenant Agreement”); 

(m) duly executed and notarized (as applicable) counterparts of assignment and assumption agreements with respect to the
Mortgage Indebtedness, in such form or forms as the Lender may require (collectively, the “Assignment of Mortgage Indebtedness”); 
 (n) duly executed counterparts of an assignment and assumption agreement from the Mezzanine Borrower with respect to the Mezzanine Indebtedness (collectively, the “Assignment of Mezzanine
Indebtedness”); 
 (o) the Leases, Operating Agreements and Licenses, if any, in the possession of
Seller or Seller’s agents (over whom Seller has control), together with such property files and records which are material in connection with the continued operation, leasing and maintenance of the Property which, at Purchaser’s election,
may be delivered outside of Escrow on the Closing Date; 
 (p) a Balance Sheet updated as of no more than three
(3) business days prior to Closing; 
 (q) such evidence as the Title Company may reasonably require to
issue the Title Policy including, without limitation, signed releases of recorded documents, other than Permitted Exceptions, and as to the authority of the person or persons executing documents on behalf of Seller; and 

(r) such additional documents as shall be reasonably required to consummate the transaction expressly contemplated by
this Agreement. 
 At the Closing, Seller shall deliver to Purchaser possession and occupancy of the Property, subject to the
Hotel Agreements and the other Permitted Exceptions. Purchaser shall cooperate with Seller for a period of five (5) years after the Closing in case of Seller’s need in response to any legal requirements, tax audits, tax return preparation
or litigation threatened or brought against Seller, by allowing Seller and its agents or representatives access, upon reasonable advance notice (which notice shall identify the nature of the information sought by Seller), at all reasonable times to
examine and make copies of any and all applicable instruments, files and records delivered to Purchaser by Seller at Closing, which right shall survive the Closing. 

3.3 Purchaser’s Obligations at Closing. At the Closing, New Hotel Owner shall deliver to Title Company, or
shall cause to be delivered to the Title Company (or to such other person or entity as the Purchaser and Seller may agree): 
 (a) not later than 4:00 p.m. local time at the Property on the day of Closing, the full amount of the Purchase Price, as increased or decreased by any adjustments as herein provided, in immediately
available wire transferred funds; 
 (b) four (4) duly executed and notarized counterparts from New Hotel
Owner of the GL Assignment; 

  
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 (c) four (4) duly executed counterparts from New Hotel Owner or the New
Operating Tenant of the Bill of Sale; 
 (d) four (4) duly executed counterparts from the New Operating
Tenant of the Assignment and Assumption of Leases; 
 (e) four (4) duly executed counterparts from New
Hotel Owner and the New Operating Tenant of the Assignment and Assumption - General; 
 (f) four (4) duly
executed counterparts from the New Operating Tenant of the Assignment of Hotel Agreements; 
 (g) four
(4) duly executed counterparts from the Master Partnership (as defined in Section 4.3(c)) of the Asset Management Agreement; 
 (h) four (4) duly executed counterparts from Walton FMT Scottsdale Investors VI, L.L.C., a Delaware limited liability company (“Walton Investors”) of the Master Partnership
Agreement and Walton Investors shall contribute its initial Capital Contribution as set forth in Section 4.01 of the Master Partnership Agreement; 
 (i) four (4) duly executed counterparts from Walton Investors of the New Operating Tenant Agreement; 
 (j) duly executed and notarized (as applicable) counterparts of the Assignment of Mortgage Indebtedness; 
 (k) duly executed counterparts from the New Mezzanine Borrower of the Assignment of Mezzanine Indebtedness; 
 (l) four (4) duly executed counterparts from the New Hotel Owner and the New Operating Tenant of a new operating lease for the Hotel in substantially the same form as the lease between DTRS and SHR
dated as of April 11, 2007. 
 (m) such evidence as the Title Company may reasonably require as to the
authority of the person or persons executing documents on behalf of Purchaser; and 
 (n) such additional
documents as shall be reasonably required to consummate the transaction contemplated by this Agreement. 
 3.4
Apportionments. There shall be no apportionments made between Seller and Purchaser. 
 3.5
Inventories. Purchaser shall acquire as of the Closing, as part of the Property and without additional consideration, all inventories of Operating Equipment and Operating Supplies (each as defined in the Hotel Management Agreement) at the
Property at Closing. 

  
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 3.6 Accounts Receivable and Accounts Payable. 

(a) DTRS shall deliver to the New Operating Tenant, as part of the Property and at no additional cost, the full amount of
all accounts receivable outstanding as of the date of Closing. 
 (b) New Hotel Owner and New Operating Tenant
shall be responsible for, without credit, any accounts payable, incurred in the ordinary course of business, outstanding on the date of Closing together with all Assumed Obligations. Each of New Hotel Owner and New Operating Tenant agrees to
indemnify, defend and hold each of SHR and DTRS harmless from and against any actual out-of-pocket costs or liability of Seller resulting from nonpayment or late payment of any of such accounts payable or nonfeasance, misfeasance or malfeasance with
respect to the Assumed Liabilities. The provisions of this Section 3.6 shall survive Closing. 
 3.7
Reservation and Other Deposits. New Operating Tenant shall be responsible for the aggregate amount of any Reservation Deposits or other advance payments and deposits to the extent such Reservation Deposits or other advance payments and
deposits are included on the Balance Sheet. Each of New Hotel Owner and New Operating Tenant shall indemnify and hold each of SHR and DTRS harmless from and against any actual out-of-pocket losses resulting from claims by, and liabilities to, future
guests or other persons or entities which have made deposits pertaining to the application or return of the Reservation Deposits or other advance payments to the extent Seller such Reservation Deposits or other advance payments and deposits are
included on the Balance Sheet. The provisions of this Section 3.7 shall survive Closing. 
 3.8
Closing Costs. Each of Seller and Purchaser shall pay the fees of any counsel representing it in connection with this transaction. Seller shall pay fifty percent (50%) and Purchaser shall pay fifty percent (50%) of the following:
(a) the premium for the Title Policy; (b) any transfer tax, sales tax, documentary stamp tax or similar tax and any bulk sales tax which becomes payable by reason of the transfer of the Property; (c) the premiums for any endorsements
to the Title Policy; (d) the cost of updating or recertifying the Survey; (e) all recording fees; and (f) all escrow fees charged by Title Company. All other costs and expenses incident to this transaction and the closing thereof
shall be paid by the party incurring same. 
 3.9 Utility Services and Deposits. SHR and DTRS shall
notify each utility company serving the Property to terminate SHR’s or DTRS’s account, as the case may be, effective on the Date of Closing. 
 3.10 Covenants of the Parties to Satisfy Requirements. Each of SHR, DTRS, New Hotel Owner, and New Operating Tenant shall cooperate in good faith to: 

(a) send within two (2) business days the requisite notices to the City with respect to the assignment and
assumption of the Ground Lease; 
 (b) achieve a transfer of the Property as contemplated in this Agreement
without: 
 (i) material cost to SHR, DTRS, New Hotel Owner or New Operating Tenant; or

  
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 (ii) triggering any default or breach under the Mortgage
Loan Agreement, or the Ground Lease; or 
 (iii) any amendment to the Mortgage Loan Agreement,
Hotel Agreements or the Ground Lease. 
 3.11 Conditions Precedent to Obligation of Purchaser. The
obligation of Purchaser to consummate the transaction hereunder shall be subject to the fulfillment on or before the date of Closing of all of the following conditions, any or all of which may be waived by Purchaser in its sole discretion:

 (a) The Lender shall have acknowledged in writing that the transfer of the Property contemplated in this
Agreement shall: 
 (i) be in conformity with Section 8.5 of the Mortgage Loan Agreement;
and, 
 (ii) not be a default under the Mortgage Loan Agreement; or, 

(iii) not result in the application of any provision of Section 18.1.2 of the Mortgage Loan
Agreement. 
 (b) The Seller shall have achieved a restructuring of the Mortgage Indebtedness substantially on
the terms and conditions set forth on Exhibit M attached hereto. 
 (c) The Operator and the Employment
Company (as applicable) shall: 
 (i) have waived its rights of first offer and first refusal
under Section 17.4 of the Hotel Management Agreement; and 
 (ii) have provided an estoppel
instrument in favor of the New Operating Tenant in the form attached as Exhibit N acceptable to Purchaser (the “Hotel Agreements Estoppel”) with respect to (i) the Hotel Agreements, (ii) Bar Agreement,
(iii) Restaurant Agreement, and (iv) the Golf Agreement. 
 (d) The Seller shall have provided an
estoppel in favor of the New Hotel Owner and New Operating Tenant in the form attached as Exhibit O acceptable to Purchaser (the “Seller Estoppel”) with respect to the (i) Ground Lease, (ii) Golf Agreement,
(iii) Bar Agreement, and (iv) Restaurant Agreement. 
 (e) The Master Partnership shall have purchased
the Mezzanine Indebtedness. 
 (f) The representations and warranties set forth in Section 4.1
hereof shall be true and correct. 
 (g) There shall be no action, suit, arbitration, unsatisfied order or
judgment, government investigation or proceeding pending which, if adversely determined, could individually or in the aggregate materially interfere with the consummation of the transaction contemplated by this Agreement. 

  
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 (h) Purchaser shall have received confirmatory environmental and structural
third-party reports showing no material adverse changes from the reports received by SHR in 2006. 
 (i) The
Title Company shall have committed to issue the Title Policy pursuant to Section 2.4 subject to the payment of any fees and expenses with respect to the Title Commitment and Title Policy (to be allocated as set forth in
Section 3.8). 
 (j) Seller shall have performed in all material respects the covenants then to have
been performed by Seller under this Agreement. 
 (k) There shall be no condemnation or other proceeding in
eminent domain pending or threatened affecting the Property or any portion thereof. 
 (l) There shall be no:
(i) existing violation of any applicable law with respect to the Property or the operation of the Hotel, (ii) administrative proceeding, investigation or inquiry pending or threatened with respect to any violation of any applicable law
with respect to the Property or the operation of the Hotel, in either event which has or could have a material adverse effect on Purchaser’s ownership or operation of the Hotel. 

(m) There shall be no: (i) litigation, arbitration, administrative or other adjudicatory proceeding or legal action
pending or threatened, with respect to the Property or the operation of the Hotel, (ii) court filing, formal written charge or complaint or written request for arbitration, mediation, administrative hearing or similar legal or quasi-legal
proceeding with respect to the Property or the operation of the Hotel, and (iii) no injunction, decree, order, writ or judgment outstanding with respect to the Property or the operation of the Hotel, in any event which has or could have a
material adverse effect on Purchaser’s ownership or operation of the Hotel. 
 (n) Seller shall not have
filed any petition in bankruptcy or other insolvency proceedings or proceedings for reorganization of Seller or for the appointment of a receiver or trustee for all or any substantial part of the Property, nor shall Seller have made any assignment
for the benefit of its creditors or filed a petition for an arrangement, or entered into an arrangement with creditors or filed a petition for an arrangement with creditors or otherwise admitted in writing its inability to pay its debt as they
become due. 
 (o) The financial statements for the years ended December 2007 through December 2010 and
year-to-date financial statements from January through April 2011, provided to Purchaser with respect to the Hotel shall be true and correct in all material respects. 

3.12 Conditions Precedent to Obligation of Seller. The obligation of Seller to consummate the transaction
hereunder shall be subject to the fulfillment on or before the date of Closing of all of the following conditions, any or all of which may be waived by Seller in its sole discretion: 

(a) The Title Company shall have received the Purchase Price from Purchaser for the benefit of Seller to be distributed
in accordance with escrow instructions acceptable to Seller and Purchaser; 

  
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 (b) The Lender shall have acknowledged in writing that the transfer of the
Property contemplated in this Agreement shall: 
 (i) be in conformity with Section 8.5 of
the Mortgage Loan Agreement; and, 
 (ii) not be a default under the Mortgage Loan Agreement; or,

 (iii) not result in the application of any provision of Section 18.1.2 of the Mortgage
Loan Agreement. 
 (c) There shall be no action, suit, arbitration, unsatisfied order or judgment, government
investigation or proceeding pending which, if adversely determined, could individually or in the aggregate materially interfere with the consummation of the transaction contemplated by this Agreement. 

(d) The Master Partnership shall have executed and delivered the Asset Management Agreement. 

(e) Purchaser shall have performed in all material respects the covenants then to have been performed by Purchaser under
this Agreement. 
 (f) New Hotel Owner shall have performed its obligations to be performed at Closing under
that certain Acquisition Fee Agreement dated as of the date hereof between New Hotel Owner and SHR Hotel Funding, L.L.C. 
 (g) There is no action, suit, arbitration, unsatisfied order or judgment, government investigation or proceeding pending against Purchaser which, if adversely determined, could individually or in the
aggregate materially interfere with the consummation of the transaction contemplated by this Agreement. 
 3.13
Failure or Waiver of Conditions Precedent. 
 (a) In the event any of the conditions set forth in
Sections 3.11(a)-(d) or Sections 3.12(b)-(c) are not fulfilled or waived on or before June 30, 2011, the party benefited by such condition may, by written notice to the other party, terminate this Agreement, whereupon
all rights and obligations hereunder of each party shall be at an end except for remedies in Article V; provided, however, that 
 (i) if there is a failure by either party to perform any material obligation in this Agreement to be performed by such party, such failure shall be considered a default by such party; 

(ii) the rights and remedies of the parties set forth in Article V shall survive any such
termination; and, 
 (iii) the failure by either party to terminate this Agreement by
June 30, 2011 shall be deemed a waiver of the conditions set forth in Sections 3.11(a)-(d) or Sections 3.12(b)-(c). 

  
 12 

 (b) In the event any of the conditions set forth in Section 3.11
or Section 3.12, other than Sections 3.11(a)-(d) or Sections 3.12(b)-(c), are not fulfilled or waived on or before the Closing Date, the party benefited by such condition may, by written notice to the other party,
terminate this Agreement, whereupon all rights and obligations hereunder of each party shall be at an end except for remedies in Article V; provided, however, that 

(i) if there is a failure by either party to perform any material obligation in this Agreement to be
performed by such party, such failure shall be considered a default by such party; 
 (ii) the
rights and remedies of the parties set forth in Article V shall survive any such termination; and, 
 (iii) the failure by either party to terminate this Agreement by the Closing Date shall be deemed a waiver of all conditions set forth in Section 3.11 and Section 3.12. 

3.14 Post Closing Deliverables. Seller shall use commercially reasonable efforts to obtain the following within
thirty (30) days of Closing. 
 (a) An estoppel instrument, acceptable to Purchaser, from PGA and TPC with
respect to the Golf Agreement in favor of the New Operating Tenant. 
 (b) An estoppel instrument, acceptable to
Purchaser, from Gerber with respect to the Bar Agreement in favor of the New Operating Tenant. 
 (c) An
estoppel instrument, acceptable to Purchaser, from Mina with respect to the Restaurant Agreement in favor of the New Operating Tenant. 
 (d) An estoppel instrument in the form attached as Exhibit P, from the City including the information set forth in Section XXXII of the Ground Lease in favor of New Hotel Owner (“Ground
Lease Estoppel”) acceptable to Purchaser. 
 (e) A “Tax clearance certificate” from the
State of Arizona and the City of Scottsdale each stating that Seller does not owe any transaction privilege taxes to the applicable jurisdiction. Until such time as Seller provides the “tax clearance certificates” and to the extent Seller
fails to provide such “tax clearance certificates”, Seller and Strategic Funding shall indemnify and hold Purchaser harmless from any and all cost, liability, obligation, loss, damage or expense (including without limitation, reasonably
attorney’s fees) arising from or relating to Seller’s failure to pay any tax due and payable prior to the Effective Date. 
 To the extent Seller provides any of the above estoppels the Seller’s liability under the Seller Estoppel shall be released. The provisions of this Section 3.14 shall survive Closing.

 ARTICLE IV 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
 4.1
Representations and Warranties of SHR, DTRS, and SHR Z. Each of SHR, DTRS, and SHR Z hereby makes the following representations and warranties to Purchaser as of 

  
 13 

 
the Effective Date and these Section 4.1 representations and warranties shall be deemed remade as of Closing: 

(a) Organization. Each of SHR, DTRS and SHR Z has been duly organized and is validly existing under the laws of
Delaware. 
 (b) Authority. Each of SHR, DTRS, and SHR Z has, or will have prior to Closing, the full
right and authority to enter into this Agreement and, to transfer all of the Property to be conveyed by Seller pursuant hereto and to consummate or cause to be consummated the transactions contemplated herein to be made by any of them. The person or
persons signing this Agreement on behalf of SHR, DTRS, and SHR Z is authorized to do so. 
 (c) No Plan
Assets. Each of SHR, DTRS and SHR Z represents, warrants and covenants that, as of the Effective, it is not, and, through the date of the Closing, it will not be, an entity deemed to hold the plan assets of any “employee benefit plan”
as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), that is subject to Title I of ERISA or any “plan” as defined in and subject to Section 4975 of the Internal
Revenue Code of 1986, as amended, pursuant to 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA. 
 (d) Foreign Person. Seller is a “United States person” (as defined in Section 7701(a)(30)(B) or (C) of the Code) for the purposes of the provisions of Section 1445(a) of
the Code. 
 4.2 Covenants of Seller. SHR and DTRS hereby covenant with Purchaser as follows: 

(a) From the Effective Date hereof until the Closing or earlier termination of this Agreement, DTRS shall operate and
maintain the Property in a manner generally consistent with the manner in which Seller has operated and maintained the Property prior to the date hereof. 
 (b) From the Effective Date until the Closing or earlier termination of this Agreement, Seller shall not, without Purchaser’s prior written consent which shall not be unreasonably withheld,
conditioned or delayed, (i) amend, extend, renew or terminate any existing Leases, Equipment Leases, Operating Agreements, or Licenses, except that Operator may amend, renew, or terminate such existing agreements as permitted under the Hotel
Management Agreement, nor (ii) enter into any new Leases, Equipment Leases or Operating Agreements, without the prior written consent of Purchaser which shall not be unreasonably withheld, conditioned or delayed, except the Operator may enter
into new Leases, Equipment Leases or Operating Agreements as permitted under the Hotel Management Agreement. 

(c) From the Effective Date until the Closing or earlier termination of this Agreement, Seller shall not, and shall
instruct Operator not to, transfer any funds from the Agency Account to the General Account (as both terms are defined in the Hotel Management Agreement), and all Balance Sheet Assets shall remain for the benefit of the Hotel and be assumed by
Purchaser. 
 4.3 Representations and Warranties of Purchaser. Each of New Hotel Owner and New Operating
Tenant hereby represents and warrants to Seller: 

  
 14 

 (a) Each of New Hotel Owner and New Operating Tenant has the full right,
power and authority to purchase the Property as provided in this Agreement and to carry out their respective obligations hereunder, and all requisite action necessary to authorize each of New Hotel Owner and New Operating Tenant to enter into this
Agreement and to carry out its obligations hereunder have been, or by the Closing will have been, taken. The person or persons signing this Agreement on behalf of New Hotel Owner and New Operating Tenant is authorized to do so. 

(b) There is no action, suit, arbitration, unsatisfied order or judgment, government investigation or proceeding pending
against any of New Hotel Owner or New Operating Tenant which, if adversely determined, could individually or in the aggregate materially interfere with the consummation of the transaction contemplated by this Agreement. 

(c) The Master Partnership is the sole owner of the outstanding equity interests in New Hotel Owner. 

(d) New Hotel Owner: 

(i) is a Single Purpose Entity wholly owned (directly or indirectly) by a Permitted Borrower Transferee,
Permitted Borrower Transferee Alternative, or a Pre-approved Transferee (as such terms are defined in the Mortgage Loan Agreement); 
 (ii) complies with, and on the Closing Date shall comply with, the representations, warranties and covenants contained in Section 4.1.29 of the Mortgage Loan Agreement; and, 

(iii) is not a Disqualified Transferee (as defined in the Mortgage Loan Agreement). 

4.4 Inspection Reports. To the extent New Hotel Owner or New Operating Tenant obtain any inspection reports
relating to the Property, New Hotel Owner or New Operating Tenant, as applicable, shall furnish to Seller copies of such reports received relating to inspections of the Property conducted on behalf of any of New Hotel Owner or New Operating Tenant,
if any (including, specifically, without limitation, any reports analyzing compliance of the Property with the provisions of the Americans with Disabilities Act (“ADA”), 42 U.S.C. §12101, et seq., if
applicable). 
 ARTICLE V 
 DEFAULT 
 5.1 Default by Purchaser. Subject
to the provisions of Section 3.13, if Purchaser fails to consummate this Agreement for any reason other than Seller’s default, or any provision of this Agreement in any material respect, Seller shall have the right to: 

(a) terminate this Agreement by written notice to Purchaser, in which event none of SHR, DTRS, SHR Z or Purchaser shall
have any rights or obligations under this Agreement, and neither Walton Street Capital, L.L.C. or Strategic Hotels & Resorts, Inc. shall have any obligations under that certain Summary of Terms – Sale of the Fairmont Scottsdale

  
 15 

 
Resort including, without limitation, Paragraph 5 under the heading “Transaction Timing and Conditions” within such Summary of Terms; or 

(b) seek specific performance of this Agreement provided that an action for specific performance is filed on or before
the date that is thirty (30) days following the scheduled Closing Date. 
 5.2 Default by Seller.
Subject to the provisions of Section 3.13, if Seller fails to consummate this Agreement for any reason other than Purchaser’s default, or any provision of this Agreement in any material respect, Purchaser shall have the right to:

 (a) terminate this Agreement by written notice to Seller, in which event none of SHR, DTRS, SHR Z or
Purchaser shall have any rights or obligations under this Agreement, and neither Walton Street Capital, L.L.C. or Strategic Hotels & Resorts, Inc. shall have any obligations under that certain Summary of Terms – Sale of the Fairmont
Scottsdale Resort including, without limitation, Paragraph 5 under the heading “Transaction Timing and Conditions” within such Summary of Terms; or, 
 (b) seek specific performance of this Agreement provided that an action for specific performance is filed on or before the date that is thirty (30) days following the scheduled Closing Date.

 5.3 Sole Remedies. The remedies specified in Section 5.1 and Section 5.2 shall be the sole
and exclusive remedies of the parties under this Agreement, all other remedies being hereby waived and relinquished. 

ARTICLE VI 

RISK OF LOSS 
 6.1 In the event of non-material loss or damage to the Property or any portion thereof, this Agreement shall remain in full force and effect provided Seller assigns to Purchaser all of Seller’s
right, title and interest to any claims and proceeds Seller may have with respect to any insurance proceeds or condemnation awards relating to the premises in question In the event of material loss or damage to the Property or any portion thereof,
Purchaser shall have the option to terminate this Agreement upon ten (10) days written notice to Seller, which notice shall be delivered within sixty (60) days following the date of such loss or damage. In the event Purchaser does not
elect to terminate this Agreement, this Agreement shall remain in full force and effect provided Seller assigns to Purchaser all of Seller’s right, title and interest to any claims and proceeds Seller may have with respect to any insurance
proceeds or condemnation awards relating to the premises in question. For the purposes of this Article VI, “material” loss or damage means that: (a) ten percent (10%) of the available guest rooms, or ten percent
(10%) of the square footage of the public areas of the Resort are unable to be used or occupied, or (b) the cost of repairing or restoring such loss or damage exceeds Five Hundred Thousand Dollars ($500,000.00). Upon Closing, full risk of
loss with respect to the Property shall pass to Purchaser. 

  
 16 

 ARTICLE VII 
 COMMISSIONS 
 7.1 Brokerage Commissions. Each
party agrees that should any claim be made for brokerage commissions or finder’s fees by any broker or finder by, through or on account of any acts of said party or its representatives, said party will indemnify and hold the other party free
and harmless from and against any and all loss, liability, cost, damage and expense in connection therewith. The provisions of this paragraph shall survive Closing or earlier termination of this Agreement. 

ARTICLE VIII 
 DISCLAIMERS AND WAIVERS 
 8.1 No Reliance on
Documents. Except as expressly stated herein, Seller makes no representation or warranty as to the truth, accuracy or completeness of any materials, data or information delivered by Seller to Purchaser in connection with the transaction
contemplated hereby. Purchaser acknowledges and agrees that all materials, data and information delivered by Seller to Purchaser in connection with the transaction contemplated hereby are provided to Purchaser as a convenience only and that any
reliance on or use of such materials, data or information by Purchaser shall be at the sole risk of Purchaser, except as otherwise expressly stated herein. Without limiting the generality of the foregoing provisions, Purchaser acknowledges and
agrees that (a) any environmental or other report with respect to the Property which is delivered by Seller to Purchaser shall be for general informational purposes only, (b) Purchaser shall not have any right to rely on any such report
delivered by Seller to Purchaser, but rather will rely on its own inspections and investigations of the Property and any reports commissioned by Purchaser with respect thereto, and (c) neither Seller, any affiliate of Seller nor the person or
entity which prepared any such report delivered by Seller to Purchaser shall have any liability to Purchaser for any inaccuracy in or omission from any such report or in verbal communication. 

8.2 Disclaimers. IT IS UNDERSTOOD AND AGREED THAT EXCEPT AS SET FORTH HEREIN, SELLER IS NOT MAKING AND HAS NOT AT
ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESSED OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, TITLE (OTHER THAN SELLER’S LIMITED WARRANTY OF TITLE TO BE SET FORTH IN THE DEED), ZONING, TAX CONSEQUENCES, LATENT OR PATENT PHYSICAL OR ENVIRONMENTAL CONDITION, UTILITIES, OPERATING HISTORY OR PROJECTIONS, VALUATION,
GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE PROPERTY WITH GOVERNMENTAL LAWS, THE TRUTH, ACCURACY OR COMPLETENESS OF THE PROPERTY DOCUMENTS OR ANY OTHER INFORMATION PROVIDED BY OR ON BEHALF OF SELLER TO PURCHASER, OR ANY OTHER MATTER OR THING
REGARDING THE PROPERTY. PURCHASER ACKNOWLEDGES AND AGREES THAT UPON CLOSING SELLER SHALL SELL AND CONVEY TO PURCHASER AND PURCHASER SHALL ACCEPT THE PROPERTY “AS IS, WHERE IS, WITH ALL FAULTS”. PURCHASER HAS NOT RELIED AND WILL NOT RELY
ON, AND 

  
 17 

 
SELLER IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESSED OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING
SPECIFICALLY, WITHOUT LIMITATION, PROPERTY INFORMATION PACKAGES DISTRIBUTED WITH RESPECT TO THE PROPERTY) MADE OR FURNISHED BY SELLER, THE OPERATOR OF THE PROPERTY, OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT SELLER,
TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING, UNLESS SPECIFICALLY SET FORTH IN THIS AGREEMENT. UPON CLOSING, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND
ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY PURCHASER’S INVESTIGATIONS, AND PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER’S MEMBERS, OFFICERS,
DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES AND COURT COSTS) OF
ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER’S MEMBERS, OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) AT ANY TIME BY REASON OF OR ARISING OUT OF ANY
LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS, AND VIOLATIONS OF ANY APPLICABLE LAWS PERTAINING TO THE PHYSICAL CONDITION OF THE PROPERTY (INCLUDING, WITHOUT LIMITATION, ANY ENVIRONMENTAL LAWS). PURCHASER AGREES THAT SHOULD ANY
CLEANUP, REMEDIATION OR REMOVAL OF HAZARDOUS SUBSTANCES OR OTHER ENVIRONMENTAL CONDITIONS ON THE PROPERTY BE REQUIRED AFTER THE DATE OF CLOSING, SUCH CLEAN-UP, REMOVAL OR REMEDIATION SHALL BE THE RESPONSIBILITY OF AND SHALL BE PERFORMED AT THE SOLE
COST AND EXPENSE OF PURCHASER AND SELLER SHALL NOT BE LIABLE TO PURCHASER FOR SUCH CLEAN-UP, REMOVAL OR REMEDIATION. AS PART OF THE PROVISIONS OF THIS SECTION 8.2, BUT NOT AS A LIMITATION THEREON, PURCHASER HEREBY AGREES, REPRESENTS AND
WARRANTS THAT THE MATTERS RELEASED HEREIN ARE NOT LIMITED TO MATTERS WHICH ARE KNOWN OR DISCLOSED. 
 8.3
Effect and Survival of Disclaimers. Seller and Purchaser agree that the provisions of this Article VIII shall survive Closing. 
 ARTICLE IX 
 MISCELLANEOUS 

9.1 Confidentiality. Purchaser and its representatives shall hold in confidence all data and information obtained
from Seller with respect to Seller or its business, whether obtained before or after the execution and delivery of this Agreement, except to the extent such information is publically available, and shall not disclose the same to others; provided,
however, that Purchaser may disclose such data and information as may be required by law, and to the 

  
 18 

 
employees, consultants, accountants and attorneys of Purchaser and other persons whose assistance is required to consummate the transactions described in this Agreement, provided that such
persons are instructed to treat such data and information confidentially. In the event this Agreement is terminated or Purchaser fails to perform hereunder, Purchaser shall promptly return to Seller or destroy any statements, documents, schedules,
exhibits or other written information obtained from Seller in connection with this Agreement or the transaction contemplated herein. In the event of a breach or threatened breach by Purchaser or its agents or representatives of this
Section 9.1, Seller shall be entitled to an injunction restraining Purchaser or its agents or representatives from disclosing, in whole or in part, such confidential information. Nothing herein shall be construed as prohibiting Seller
from pursuing damages or any other available remedy at law or in equity for such breach or threatened breach. The provisions of this Section 9.1 shall survive Closing. 

9.2 Public Disclosure. Prior to Closing, any release to the public of information with respect to the sale
contemplated herein or any matters set forth in this Agreement will be made only in the form approved by Purchaser and Seller and their respective counsel. Each party agrees to provide a copy of any such proposed public announcement to the other
party at least two business days prior to its release in order to afford the other party an opportunity to review and the right to approve the form and content of any such public release, which approval shall not be unreasonably withheld or delayed.
Notwithstanding the foregoing, Purchaser acknowledges that Seller is beneficially owned by a public company subject to disclosure requirements mandated by its governing documents, law or stock exchange regulation and that public announcements with
respect to the information otherwise subject to the constraints set forth above may be so mandated. If Seller is unable to afford Purchaser the two business day period for review and approval of a proposed announcement based on unanticipated events
which, in the opinion of Seller’s securities counsel, could expose Seller to violation of law or securities liability absent such an announcement, Seller shall have the right to make such announcement, provided that Seller in any event shall
have provided Purchaser with the proposed announcement prior to release and afforded Purchaser such opportunity to review and approve the announcement as is reasonable in light of the circumstances. 

9.3 Exclusivity. Until June 30, 2011, Seller shall not, directly or indirectly, solicit, pursue or negotiate
or accept any other offers for (a) the Property or any portion thereof or interest therein, or (b) any direct or indirect interest in Seller. 
 9.4 Discharge of Obligations. The acceptance of the Deed by Purchaser shall be deemed to be a full performance and discharge of every representation and warranty made by Seller herein and every
agreement and obligation on the part of Seller to be performed pursuant to the provisions of this Agreement, except those which are herein specifically stated to survive Closing. 

9.5 Assignment. Neither party may assign its rights under this Agreement without first obtaining the other
party’s written approval, which approval may be given or withheld in such other party’s sole discretion. Any transfer, directly or indirectly, of any stock, partnership interest or other ownership interest in Seller without
Purchaser’s written approval, which approval may be given or withheld in Purchaser’s sole discretion, shall constitute a default by Seller under this Agreement; provided, however, that nothing in this Section 9.5 shall prohibit
the transfer of stock in Strategic Hotels & Resorts, Inc. or units in Strategic Hotel Funding, LLC, and such transfers of stock or units shall not be deemed a breach or default under this

  
 19 

 
Agreement. Seller and Purchaser agree that the provisions of this Article VIII shall survive Closing. 

9.6 Notices. Any notice pursuant to this Agreement shall be given in writing by (a) personal delivery, or
(b) nationally recognized overnight delivery service with proof of delivery, or (c) United States Mail, postage prepaid, registered or certified mail, return receipt requested, or (d) legible facsimile transmission sent to the
intended addressee at the address set forth below, or to such other address or to the attention of such other person as the addressee shall have designated by written notice sent in accordance herewith, and shall be deemed to have been given either
at the time of personal delivery, or, in the case of expedited delivery service or mail, as of the date of first attempted delivery at the address and in the manner provided herein, or, in the case of facsimile transmission, as of the date of the
facsimile transmission provided that an original of such facsimile is also sent to the intended addressee by means described in clauses (a), (b) or (c) above. Unless changed in accordance with the preceding sentence, the addresses for
notices given pursuant to this Agreement shall be as follows: 
  

			
	 If to Seller:
	  	 SHR Scottsdale, L.L.C.

		  	 c/o Strategic Hotels & Resorts, Inc.

		  	 200 West Madison

		  	 Suite 1700

		  	 Chicago, Illinois 60606

		  	 Attention: General Counsel

		  	 Telecopy: (312) 658-5799

		
	 with a copy to:
	  	 Perkins Coie LLP

		  	 131 S. Dearborn Street, Suite 1700

		  	 Chicago, Illinois 60603-5559

		  	 Attention: Daniel G.M. Marre

		  	 Telecopy: (312) 324-9632

		
	 If to Purchaser:
	  	 FMT Scottsdale Owner, LLC

		  	 Walton/SHR FPH, LLC

		  	 c/o Walton Street Capital, L.L.C.

		  	 900 N. Michigan Ave., Suite 1900

		  	 Chicago, Illinois 60611

		  	 Attention: Robert Bloom

		  	 Telecopy: (312) 915-2881

		
	 with a copy to:
	  	 Latham & Watkins LLP

		  	 233 South Wacker Drive

		  	 Suite 5800

		  	 Chicago, Illinois 60606

		  	 Attention: Gary Axelrod

		  	 Telecopy: (312) 993-9767

 9.7 Binding Effect. This Agreement shall not be binding in any way upon Seller or Purchaser unless and until Seller and Purchaser shall execute and deliver the same each to the other. 

  
 20 

 9.8 Modifications. This Agreement cannot be changed orally, and no
executory agreement shall be effective to waive, change, modify or discharge it in whole or in part unless such executory agreement is in writing and is signed by the parties against whom enforcement of any waiver, change, modification or discharge
is sought. 
 9.9 Time of the Essence; Calculation of Time Periods. Time of performance is of the essence
of this Agreement. Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so
computed is to be included, unless such last day is a Saturday, Sunday or legal holiday under the laws of the State in which the Property is located or the United States of America, in which event the period shall run until the end of the next day
which is neither a Saturday, Sunday or legal holiday. The final day of any such period shall be deemed to end at 5 p.m., local time at the Property. The term “days” as used herein shall mean calendar days, with the exception of
“business days”, which term shall mean each day except for any Saturday, Sunday or legal holiday under the laws of the State in which the Property is located or the United States of America. 

9.10 Successors and Assigns. The terms and provisions of this Agreement are to apply to and bind the permitted
successors and assigns of the parties hereto. 
 9.11 Entire Agreement. This Agreement, including the
Exhibits, contains the entire agreement between the parties pertaining to the subject matter hereof and fully supersedes all prior written or oral agreements and understandings between the parties pertaining to such subject matter. 

9.12 Further Assurances. Each party agrees that it will without further consideration execute and deliver such
other documents and take such other action, whether prior or subsequent to Closing, as may be reasonably requested by the other party to consummate more effectively the purposes or subject matter of this Agreement. The provisions of this
Section 9.12 shall survive Closing. 
 9.13 Counterparts; Signatures. This Agreement may be
executed in counterparts, and all such executed counterparts shall constitute the same agreement. It shall be necessary to account for only one such counterpart in proving this Agreement. Facsimile or PDF signatures or on this Agreement shall be
same as original signatures for all purposes. 
 9.14 Severability. If any provision of this Agreement is
determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in full force and effect. 

9.15 Applicable Law. THIS AGREEMENT IS PERFORMABLE IN THE STATE IN WHICH THE PROPERTY IS LOCATED AND SHALL IN ALL
RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE SUBSTANTIVE FEDERAL LAWS OF THE UNITED STATES AND THE LAWS OF SUCH STATE. SELLER AND PURCHASER HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN THE
STATE IN WHICH THE PROPERTY IS LOCATED IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND HEREBY IRREVOCABLY AGREE THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED

  
 21 

 
IN A STATE OR FEDERAL COURT SITTING IN THE STATE IN WHICH THE PROPERTY IS LOCATED. PURCHASER AND SELLER AGREE THAT THE PROVISIONS OF THIS SECTION 9.15 SHALL SURVIVE THE CLOSING OF THE
TRANSACTION CONTEMPLATED BY THIS AGREEMENT. 
 9.16 No Third Party Beneficiary. The provisions of this
Agreement and of the documents to be executed and delivered at Closing are and will be for the benefit of Seller or Purchaser only and are not for the benefit of any third party (including, without limitation, Title Company), and accordingly, no
third party shall have the right to enforce the provisions of this Agreement or of the documents to be executed and delivered at Closing. 
 9.17 Exhibits. The following schedule and exhibits, which are attached to this Agreement, are incorporated in and shall be deemed to be an integral part of this Agreement: 

 

					
			
	 (a)
	  	Schedule 1	  	 Balance Sheet

			
	 (b)
	  	Schedule 2	  	 Title Policy (Pro Forma)

			
	 (c)
	  	Exhibit A-1	  	 Legal Description of Fee Component

			
	 (d)
	  	Exhibit A-2	  	 Legal Description of Land Subject to Ground Lease

			
	 (e)
	  	Exhibit A-3	  	 Legal Description of Vacant Land

			
	 (f)
	  	Exhibit B	  	 Excluded Personal Property

			
	 (g)
	  	Exhibit C-1	  	 Lease Schedule

			
	 (h)
	  	Exhibit C-2	  	 Operating Agreements

			
	 (i)
	  	Exhibit C-3	  	 Equipment Leases

			
	 (j)
	  	Exhibit D-1	  	 Deed

			
	 (k)
	  	Exhibit D-2	  	 Assignment and Assumption of Ground Lease

			
	 (l)
	  	Exhibit E	  	 Bill of Sale

			
	 (m)
	  	Exhibit F	  	 Assignment and Assumption of Leases

			
	 (n)
	  	Exhibit G	  	 Assignment and Assumption - General

			
	 (o)
	  	Exhibit H	  	 Notice to Tenants

			
	 (p)
	  	Exhibit I	  	 FIRPTA Certificate

			
	 (q)
	  	Exhibit J	  	 Assignment of Hotel Agreements

			
	 (r)
	  	Exhibit K	  	 Asset Management Agreement

			
	 (s)
	  	Exhibit L-1	  	 Master Partnership Agreement

  
 22 

					
			
	 (t)
	  	Exhibit L-2	  	 New Operating Tenant Agreement

			
	 (u)
	  	Exhibit M	  	 Mortgage Indebtedness Term Sheet

			
	 (v)
	  	Exhibit N	  	 Hotel Agreements Estoppel

			
	 (w)
	  	Exhibit O	  	 Seller Estoppel

			
	 (x)
	  	Exhibit P	  	 Ground Lease Estoppel

 9.18 Captions. References in this Agreement to “Section” are to the numbered Sections herein. The section headings appearing in this Agreement are for convenience of reference only and
are not intended, to any extent and for any purpose, to limit or define the text of any section or any subsection hereof. 
 9.19 Construction. The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities
are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any exhibits or amendments hereto. 
 9.20 Termination of Agreement. It is understood and agreed that if either Purchaser or Seller terminates this Agreement pursuant to a right of termination granted hereunder, such termination shall
operate to relieve Seller and Purchaser from all obligations under this Agreement, except for such obligations as are specifically stated herein to survive the termination of this Agreement. 

9.21 No Personal Liability. No member or manager of Seller or Purchaser, no officer, director or partner of a
member or manager of Seller or Purchaser, no disclosed or undisclosed principal of Seller or Purchaser and no person in any way affiliated with Seller or Purchaser shall have any personal liability with respect to this Agreement, any instrument
delivered by Seller or Purchaser at the Closing or the transaction contemplated hereby, nor shall the property of any such person or entity be subject to attachment, levy, execution or other judicial process. 

9.22 Costs of Enforcement. If either party hereto fails to perform any of its obligations under this Agreement or
if a dispute arises concerning the meaning or interpretation of any provision of this Agreement, then the defaulting party or the party not prevailing in such dispute shall pay all costs and expenses incurred by the other party on account of such
default or in enforcing or establishing its rights hereunder, including, without limitation, court costs and reasonable attorneys fees and disbursements. 
 9.23 Currency. All transactions referred to in this Agreement shall be made in lawful money of the United States in immediately available funds. 

[signature page follows] 

  
 23 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as
of the Effective Date. 
  

			
	 SELLER:

	
	 SHR SCOTTSDALE, L.L.C.,
 a Delaware limited liability company

		
	 By:
	 	 /s/ Robert T. McAllister

		 	 Robert T. McAllister, Senior Vice

		 	 President, Tax

	
	 DTRS SCOTTSDALE, L.L.C.,
 a Delaware limited liability company

		
	 By:
	 	 /s/ Robert T. McAllister

		 	 Robert T. McAllister, Senior Vice
 President, Tax

	
	 SHR SCOTTSDALE Z, L.L.C.,
 a Delaware limited liability company

		
	 By:
	 	 /s/ Robert T. McAllister

		 	 Robert T. McAllister, Senior Vice
 President, Tax

			
	
	 STRATEGIC HOTEL FUNDING, L.LC., hereby acknowledges its joinder to this agreement for purposes of Section 3.14(e)

			
	
	 STRATEGIC HOTEL FUNDING, L.L.C.
 a Delaware limited liability company

		
	 By:
	 	 /s/ Robert T. McAllister

		 	 Robert T. McAllister,

		 	 Senior Vice President, Tax

[SIGNATURES CONTINUE ON THE NEXT PAGE] 

																							
	 PURCHASER:
  

	 FMT SCOTTSDALE OWNER, LLC
 a Delaware limited liability company

			
		 	 By:
	 	 FMT Scottsdale Mezzanine, LLC

		 		 	 its sole member

				
		 		 	 By:
	 	 FMT Scottsdale Holdings, LLC

		 		 		 	 its sole member

					
		 		 		 	 By:
	 	 Walton Scottsdale Investors VI, L.L.C.

		 		 		 		 	 its sole member

						
		 		 		 		 	 By:
	 	 Walton Acquisition REOC Master VI, L.L.C.,

		 		 		 		 		 	 its sole member

							
		 		 		 		 		 	 By:
	 	 Walton Street Real Estate Fund VI-Q, L.P.,

		 		 		 		 		 		 	 its managing member

									
		 		 		 		 		 		 		 	 By:
	 	 Walton Street Managers VI, L.P.,

		 		 		 		 		 		 		 		 	 its general partner

										
		 		 		 		 		 		 		 		 	 By:
	 	 WSC Managers VI, Inc.,

		 		 		 		 		 		 		 		 		 	 its general partner

												
		 		 		 		 		 		 		 		 		 	 By:
	 	 /s/ Robert S. Bloom
	 	
		 		 		 		 		 		 		 		 		 	 Name:
	 	 Robert S. Bloom
	 	
		 		 		 		 		 		 		 		 		 	 Title:
	 	 Vice President
	 	

 [SIGNATURES CONTINUE ON THE NEXT PAGE] 

  
 2 

																							
	 WALTON/SHR FPH, LLC
 a Delaware limited liability company

			
		 	 By:
	 	 Walton/SHR FPH Mezzanine, LLC

		 		 	 its sole member

				
		 		 	 By:
	 	 Walton/SHR FPH Holdings, LLC

		 		 		 	 its sole member

					
		 		 		 	 By:
	 	 Walton Scottsdale Investors VI, L.L.C.

		 		 		 		 	 its sole member

						
		 		 		 		 	 By:
	 	 Walton Acquisition REOC Master VI, L.L.C.,

		 		 		 		 		 	 its sole member

							
		 		 		 		 		 	 By:
	 	 Walton Street Real Estate Fund VI-Q, L.P.,

		 		 		 		 		 		 	 its managing member

									
		 		 		 		 		 		 		 	 By:
	 	 Walton Street Managers VI, L.P.,

		 		 		 		 		 		 		 		 	 its general partner

										
		 		 		 		 		 		 		 		 	 By:
	 	 WSC Managers VI, Inc.,

		 		 		 		 		 		 		 		 		 	 its general partner

												
		 		 		 		 		 		 		 		 		 	 By:
	 	 /s/ Robert S. Bloom
	 	
		 		 		 		 		 		 		 		 		 	 Name:
	 	 Robert S. Bloom
	 	
		 		 		 		 		 		 		 		 		 	 Title:
	 	 Vice President
	 	

  
 3 

 Schedule 1 
 BALANCE SHEET 
 [SEE ATTACHED] 

					
		  	 Balance Sheet
 Fairmont Scottsdale Princess Total
 May 2011

(in USD)
	  	 C2: TotManaged
 C4: TotC4
 ICP: [ICP Top]

 

																	
	Amount	 	  	Amount	 	 	 	  	Variance	 
	Current Year	 	  	Prior Year	 	 	 	  	Amount	 	 	%	 
				  				 	ASSETS	  				 			
				  				 	Current Assets	  				 			
				  				 	 Cash
	  				 			
	 	3,604,375	  	  	 	1,198,625	  	 	 Spare Bank Account 1
	  	 	2,405,751	  	 	 	200.71	% 
	 	1,050,525	  	  	 	1,122,490	  	 	 Spare Bank Account 3
	  	 	(71,965	) 	 	 	(6.41	%) 
	 	1,499,563	  	  	 	1,172,795	  	 	 Spare Bank Account 4
	  	 	326,768	  	 	 	27.86	% 
	 	100,000	  	  	 	100,000	  	 	 House Banks
	  	 	—  	  	 	 	—  	  
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	6,254,463	  	  	 	3,593,909	  	 	 Total Cash
	  	 	2,660,554	  	 	 	74.03	% 
					
				  				 	 Short-Term Investments Receivables
	  				 			
					
	 	334,357	  	  	 	507,840	  	 	 Guest Ledger
	  	 	(173,483	) 	 	 	(34.16	%) 
	 	1,383,047	  	  	 	1,758,187	  	 	 City Ledger - A/R Interface
	  	 	(375,141	) 	 	 	(21.34	%) 
	 	799,811	  	  	 	830,952	  	 	 Other
	  	 	(31,141	) 	 	 	(3.75	%) 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	2,517,215	  	  	 	3,096,980	  	 	 Total Receivables
	  	 	(579,765	) 	 	 	(18.72	%) 
					
	 	(24,006)	  	  	 	(29,164	) 	 	 Allowance For Doubtful Accounts
	  	 	5,158	  	 	 	(17.69	%) 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	2,493,209	  	  	 	3,067,815	  	 	 AR_Net
	  	 	(574,607	) 	 	 	(18.73	%) 
					
				  				 	 Inventories
	  				 			
	 	349,194	  	  	 	404,120	  	 	 Food and Beverage
	  	 	(54,927	) 	 	 	(13.59	%) 
	 	489,853	  	  	 	420,616	  	 	 Supplies and All Other
	  	 	69,237	  	 	 	16.46	% 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	839,047	  	  	 	824,736	  	 	 Inventories
	  	 	14,311	  	 	 	1.74	% 
	 	871,692	  	  	 	454,697	  	 	 Prepaid Expenses
	  	 	416,996	  	 	 	91.71	% 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	10,458,411	  	  	 	7,941,157	  	 	 Current Assets
	  	 	2,517,254	  	 	 	31.70	% 
				  				 	LONG-TERM ASSETS	  				 			
					
	 	15,348,295	  	  	 	12,660,227	  	 	 Construction/Renovations In Progress
	  	 	2,688,068	  	 	 	21.23	% 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	15,348,295	  	  	 	12,660,227	  	 	 Net PP&E
	  	 	2,688,068	  	 	 	21.23	% 
	 	872,112	  	  	 	757,902	  	 	 Other Assets
	  	 	114,210	  	 	 	15.07	% 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	16,220,407	  	  	 	13,418,129	  	 	 Long Term Assets
	  	 	2,802,278	  	 	 	20.88	% 
	 	416,785	  	  	 	416,785	  	 	 Bal
	  	 	—  	  	 	 	—  	  
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	27,095,603	  	  	 	21,776,072	  	 	 Total Assets
	  	 	5,319,531	  	 	 	24.43	% 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 

  

					
		 		 	Report Run By: rbischof
	 Mth Compare Balance Sheet
	 	Page 69 of 70	 	Date: 04/06/2011 1:36AM

					
		  	 Balance Sheet
 Fairmont Scottsdale Princess Total
 May 2011

(in USD)
	  	 C2: TotManaged
 C4: TotC4
 ICP: [ICP Top]

 

																	
	Amount	 	  	Amount	 	 	 	  	Variance	 
	Current Year	 	  	Prior Year	 	 	 	  	Amount	 	 	%	 
				  				 	LIABILITIES & OWNERS’ EQUITY	  				 			
	 	23,705	  	  	 	(26,278	) 	 	 Accounts Payable Trade
	  	 	49,983	  	 	 	(190.21	%) 
	 	1,092,689	  	  	 	1,155,209	  	 	 Accounts Payable Other
	  	 	(62,520	) 	 	 	189.10	% 
	 	441,054	  	  	 	352,799	  	 	 Due to Concessionaires
	  	 	88,256	  	 	 	25.02	% 
	 	2,612,473	  	  	 	2,883,649	  	 	 Advance Deposits
	  	 	(271,176	) 	 	 	(9.40	%) 
	 	424,689	  	  	 	408,181	  	 	 Accrued Salaries and Wages
	  	 	16,509	  	 	 	4.04	% 
	 	1,155,074	  	  	 	1,107,556	  	 	 Accrued Vacation Pay and Holiday
	  	 	47,518	  	 	 	4.29	% 
	 	1,913,258	  	  	 	2,469,236	  	 	 Employee Benefits Accruals
	  	 	(555,978	) 	 	 	(22.52	%) 
	 	1,879,723	  	  	 	1,728,965	  	 	 Taxes accruals
	  	 	150,758	  	 	 	8.72	% 
	 	275,101	  	  	 	265,525	  	 	 Utilities accruals
	  	 	9,576	  	 	 	3.61	% 
	 	411,752	  	  	 	367,793	  	 	 Other Accrued Liabilities
	  	 	43,959	  	 	 	11.95	% 
	 	165	  	  	 	165	  	 	 Payroll & Other Deductions
	  	 	—  	  	 	 	—  	  
	 	4,176	  	  	 	6,649	  	 	 Federal/Prov./State Retail Sales Tax Payable
	  	 	(2,473	) 	 	 	(37.19	%) 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	10,233,859	  	  	 	10,719,448	  	 	 Current Liabilites
	  	 	(485,589	) 	 	 	(4.53	%) 
	 	—  	  	  	 	360,000	  	 	 Future Tax
	  	 	(360,000	) 	 	 	(100.00	%) 
	 	828,480	  	  	 	724,117	  	 	 Deferred Compensation Plan
	  	 	104,362	  	 	 	14.41	% 
	 	58,503	  	  	 	102,968	  	 	 LT Liab. Willow Stream
	  	 	(44,466	) 	 	 	(43.18	%) 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	886,982	  	  	 	1,187,085	  	 	 Long Term Debt
	  	 	(300,103	) 	 	 	(25.28	%) 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	11,120,841	  	  	 	11,906,534	  	 	 Total Liabiltities
	  	 	(785,692	) 	 	 	(6.60	%) 
					
				  				 	 EQUITY
	  				 			
	 	(61,021,365)	  	  	 	(57,021,365	) 	 	 Owner’s Investment #1
	  	 	(4,000,000	) 	 	 	7.01	% 
	 	65,753,961	  	  	 	58,299,457	  	 	 Retained Earnings, Opening
	  	 	7,454,504	  	 	 	12.79	% 
	 	11,242,166	  	  	 	8,591,446	  	 	 Current Year Earnings
	  	 	2,650,720	  	 	 	30.85	% 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	76,996,127	  	  	 	66,890,903	  	 	 Retained Earnings, Closing
	  	 	10,105,224	  	 	 	15.11	% 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	15,974,762	  	  	 	9,869,538	  	 	 Total Shareholder Equity
	  	 	6,105,224	  	 	 	61.86	% 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	27,095,603	  	  	 	21,776,072	  	 	 Total Liabiltities & Shareholders’ Eqty
	  	 	5,319,531	  	 	 	24.43	% 
	 	 	 	  	 	 	 	 		  	 	 	 	 	 	 	 
	 	0	  	  	 	0	  	 	 Report out of Balance
	  	 	—  	  	 	 	—  	  
	 	0	  	  	 	0	  	 	 Out of Balance
	  	 	—  	  	 	 	—  	  
					
				  				 	Balance Sheet Ratio Analysis	  				 			
					
	 	1.0	  	  	 	0.7	  	 	Current Ratio	  				 			
					
	 	16.4	  	  	 	12.5	  	 	Accounts Receivable Turnover	  				 			
					
	 	2.4	  	  	 	1.8	  	 	Solvency Ratio	  				 			
					
				  				 	Activity Ratios	  				 			
					
	 	389.8	  	  	 	453.3	  	 	Food Inventory Turnover	  				 			
					
	 	2.4	  	  	 	1.8	  	 	Beverage Inventory Turnover	  				 			
					
				  				 	Profitability Ratios	  				 			
					
	 	38.4%	  	  	 	34.8	% 	 	Gross Operating Profit	  				 			
					
	 	27.5%	  	  	 	22.5	% 	 	Net Income	  				 			

  

					
	 Mth Compare Balance Sheet
	  	Page 70 of 70	  	 Report Run By: rbischof
 Date: 04/06/2011 1:36AM

 Schedule 2 
 TITLE POLICY 
 [SEE ATTACHED] 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 CHICAGO TITLE INSURANCE COMPANY 
 ALTA OWNER’S POLICY (2006)

 SCHEDULE A 
 PRO FORMA 
  

					
	 Policy Number
	 	 Date of Policy
	 	 Amount of Insurance

	 CT1103006-CT2946
	 	 Date of Recording of the Deed
	 	 $140,000,000.00

  

	1.	 Name of Insured: 

 FMT Scottsdale Owner, LLC, a Delaware limited liability company 
  

	2.	 The estate or interest in the land insured by this Policy is: 

A leasehold as created by that certain unrecorded lease dated September 30, 1985, executed by City of Scottsdale, as lessor, and
Scottsdale Princess Partnership, as lessee, and disclosed by Memorandum of Lease recorded December 2, 1986 at 86-664161, and thereafter an unrecorded First Amendment to Ground Lease dated November 17, 1986 and thereafter a Second Amendment
to Lease recorded April 6, 1986 in Recording No. 95-0191353 and re-recorded May 9, 1995 in Recording No. 95-0264201 and thereafter a Wall and Sign Agreement and Third Amendment to Ground Lease recorded May 28, 2003 in
Recording No. 2003-0675900; The Lessee’s interest was assigned to SHR Scottsdale X, L.L.C., a Delaware limited liability company and SHR Y, L.L.C., a Delaware limited liability company by Assignment recorded in Recording
No. 2006-1183784, and further assigned to FMT Scottsdale Owner by Assignment dated             , 2011 and recorded
                    , 2011 in Recording No.
                            , for its term of 99 years, upon and subject to all of the provisions
contained therein, as to Parcel 1; 
 Fee Simple as to Parcels 2 through 7; and Easement as to Parcels 8 through
13. 
  

	3.	 Title to the estate or interest in the land is vested in the Insured. 

 

	4.	 The land referred to in this Policy is described as follows: 

SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF. 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 LEGAL DESCRIPTION 
 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE
COUNTY OF MARICOPA, STATE OF ARIZONA AND IS DESCRIBED AS FOLLOWS: 
 Parcel No. 1: (Hotel Parcel) 

That portion of the South half of Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base and Meridian, Maricopa
County, Arizona, described as follows: 
 COMMENCING at the South one-quarter corner of said Section 35; 

THENCE North 00 degrees 08 minutes 41 seconds East, along the North-South mid-section line of said Section 35, a distance of 1206.58
feet to the POINT OF BEGINNING; 
 THENCE North 89 degrees 51 minutes 19 seconds West, 111.62 feet; 

THENCE North 05 degrees 04 minutes 10 seconds West, 34.51 feet to the beginning of a curve concave to the East having a radius of 75.00
feet; 
 THENCE Northerly along said curve through a central angle of 60 degrees 29 minutes 58 seconds, an arc distance of 79.19
feet to a point of reverse curvature with a curve concave to the Southwest and having a radius of 75.00 feet; 
 THENCE
Northeasterly, Northerly, and Southwesterly along said curve through a central angle of 168 degrees 47 minutes 48 seconds, an arc distance of 220.95 feet; 
 THENCE South 66 degrees 38 minutes 00 seconds West, 521.45 feet; THENCE North 07 degrees 07 minutes 02 seconds West, 47.49 feet; 
 THENCE North 88 degrees 18 minutes 25 seconds West, 29.86 feet; THENCE North 58 degrees 07 minutes 53 seconds West, 43.04 feet; 
 THENCE North 26 degrees 47 minutes 27 seconds West, 26.35 feet; 
 THENCE North 83
degrees 46 minutes 19 seconds West, 39.13 feet; THENCE North 27 degrees 44 minutes 13 seconds West, 177.75 feet; 
 THENCE North
89 degrees 49 minutes 06 seconds West, 103.52 feet; 
 THENCE South 00 degrees 01 minutes 45 seconds West, 18.00 feet;

 THENCE North 89 degrees 49 minutes 06 seconds West, 377.78 feet; 

THENCE North 00 degrees 01 minutes 45 seconds East, 756.50 feet 
 THENCE North 78 degrees 51 minutes 20 seconds East, 4.33 feet to the beginning of a curve concave to the South having a radius of 250.00 feet; 

THENCE Easterly along said curve through a central angle of 51 degrees 43 minutes 26 seconds, an arc distance of 225.69 feet; 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 THENCE South 49 degrees 25 minutes 14 seconds East, 59.77 feet; 
 THENCE North 40
degrees 34 minutes 36 seconds East, 352.13 feet to the beginning of a curve concave to the Southeast having a radius of 100.00 feet; 
 THENCE Northeasterly along said curve through a central angle of 49 degrees 35 minutes 38 seconds, an arc distance of 86.56 feet; 
 THENCE South 89 degrees 49 minutes 46 seconds East, 385.35 feet to the beginning of a non-tangent curve concave to the East having a radius of 500.00 feet, and a radial bearing to said beginning of South
73 degrees 52 minutes 17 seconds West; 
 THENCE Northerly along said curve through a central angle of 16 degrees 17 minutes 57
seconds, an arc distance of 142.24 feet; 
 THENCE South 89 degrees 49 minutes 46 seconds East, 55.5 feet to the beginning of a
non-tangent curve concave to the Northeast having a radius of 444.50 feet and a radial bearing to said beginning of North 89 degrees 46 minutes 46 seconds West; 
 THENCE Southeasterly along said curve through a central angle of 75 degrees 09 minutes 12 seconds, an arc distance of 583.04 feet; 
 THENCE South 74 degrees 58 minutes 57 seconds East, 6.41 feet to the North-South mid-section of said Section 35; 
 THENCE South 00 degrees 08 minutes 41 seconds West, along said mid-section line, 57.42 feet; 
 THENCE South 74 degrees 58 minutes 57 seconds East, 337.32 feet to the beginning of a curve concave to the Southwest having a radius of 300.00 feet; 

THENCE Southeasterly along said curve through a central angle of 35 degrees 25 minutes 14 seconds, an arc distance of 185.46 feet;

 THENCE South 39 degrees 33 minutes 43 seconds East, 125.23 feet to the beginning of a curve concave to the Northeast having a
radius of 1000.00 feet; 
 THENCE Southeasterly along said curve through a central angle of 11 degrees 27 minutes 33 seconds, an
arc distance of 200.00 feet; 
 THENCE South 38 degrees 58 minutes 44 seconds West, 55.50 feet; 

THENCE South 16 degrees 17 minutes 23 seconds West, 211.79 feet. 

THENCE North 89 degrees 51 minutes 19 seconds West, 270.00 feet; 

THENCE South 00 degrees 08 minutes 41 seconds West, 208.40 feet; 

THENCE North 89 degrees 51 minutes 19 seconds West, 148.26 feet; 

THENCE South 00 degrees 08 minutes 41 seconds West, 14.66 feet; 
 THENCE North 89 degrees 51 minutes 19 seconds West, 67.83 feet; 
 THENCE North 00
degrees 08 minutes 41 seconds East, 10.06 feet; 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 THENCE North 89 degrees 51 minutes 19 seconds West, 122.29 feet to the POINT OF BEGINNING; 
 EXCEPT one-half of all oil and mineral rights as reserved in instrument recorded in Book 124, page 39, records of Maricopa County, Arizona; and also 

EXCEPT all oil gas, other hydrocarbon substances, helium or other substances of a gaseous nature, coal, metals, minerals, fossils,
fertilizer of every name and description; and also 
 EXCEPT all uranium, thorium or any other material which is or may be
determined to be peculiarly essential to the production of fissionable materials whether or not of commercial value, as set forth in Section 37-231, Arizona Revised Statutes. 

Parcel No. 2: (Tennis Cottages Parcel) 
 That port of the Southwest one-quarter of Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, described as follows: 

COMMENCING at the South one-quarter corner of said Section 35; 

THENCE North 00 degrees 08 minutes 41 seconds East, along the North-South mid-section line of said Section 35, a distance of 1486.58
feet; 
 THENCE North 89 degrees 49 minutes 06 seconds West, 840.00 feet to the POINT OF BEGINNING; 

THENCE South 27 degrees 44 minutes 13 seconds East, 177.75 feet; 

THENCE South 83 degrees 46 minutes 19 seconds East, 39.13 feet; 
 THENCE South 26 degrees 47 minutes 27 seconds East, 26.35 feet; 
 THENCE South 58
degrees 07 minutes 53 seconds East, 43.04 feet; 
 THENCE South 88 degrees 18 minutes 25 seconds East, 29.86 feet; 

THENCE South 07 degrees 07 minutes 02 seconds East, 47.49 feet; 
 THENCE South 66 degrees 38 minutes 00 seconds West, 275.66 feet to the beginning of a curve concave to the Southeast having a radius of 150.00 feet; 

THENCE Southwesterly along said curve through a central angle of 12 degrees 08 minutes 15 seconds, an arc distance of 31.78 feet;

 THENCE South 54 degrees 29 minutes 46 seconds West, 446.31 feet; 

THENCE North 84 degrees 49 minutes 13 seconds West, 43.57 feet; 
 THENCE North 00 degrees 01 minutes 45 seconds East, 619.54 feet; 
 THENCE South 89
degrees 49 minutes 06 seconds East, 377.78 feet; 
 THENCE North 00 degrees 01 minutes 45 seconds East, 18.00 feet; 

THENCE South 89 degrees 49 minutes 06 seconds East, 103.52 feet to the POINT OF BEGINNING. 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 EXCEPT one-half of all oil and mineral rights as reserved in instrument recorded in Book 124, page 39, records of Maricopa County, Arizona; and also 

EXCEPT all oil gas, other hydrocarbon substances, helium or other substances of a gaseous nature, coal, metals, minerals, fossils,
fertilizer of every name and description; and also 
 EXCEPT all uranium, thorium or any other material which is or may be
determined to be peculiarly essential to the production of fissionable materials whether or not of commercial value, as set forth in Section 37-231, Arizona Revised Statutes. 

Parcel No. 3: (Golf Cottage Parcel) 
 That portion of the South one-half of Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, described as follows: 

COMMENCING at the South one-quarter corner of said Section 35; 

THENCE North 00 degrees 08 minutes 41 seconds East, along the North-South mid-section line of said Section 35, a distance of 692.16
feet to the POINT OF BEGINNING; 
 THENCE North 79 degrees 44 minutes 48 seconds West, 66.78 feet; THENCE North 05 degrees 04
minutes 10 seconds West, 504.79 feet; THENCE South 89 degrees 51 minutes 19 seconds East, 233.91 feet; THENCE South 00 degrees 08 minutes 41 seconds West, 10.06 feet; THENCE South 89 degrees 51 minutes 19 seconds East, 67.83 feet; 

THENCE North 00 degrees 08 minutes 41 seconds East, 14.66 feet; THENCE South 89 degrees 51 minutes 19 seconds East, 148.26 feet; THENCE
South 00 degrees 08 minutes 41 seconds West, 16.60 feet; THENCE South 89 degrees 51 minutes 19 seconds East, 102.00 feet; THENCE South 00 degrees 08 minutes 41 seconds West, 253.85 feet; THENCE North 79 degrees 44 minutes 48 seconds West, 295.00
feet; 
 THENCE South 10 degrees 15 minutes 12 seconds West, 92.82 feet to the beginning of a non-tangent curve concave to the
Southeast, having a radius of 45.00 feet, and a radial bearing to said beginning of North 39 degrees 43 minutes 18 seconds East; 
 THENCE Southwesterly along said curve through a central angle of 134 degrees 47 minutes 28 seconds, an arc distance of 105.86 feet; 

THENCE South 84 degrees 55 minutes 50 seconds West, 60.44 feet to a point on the North-South midsection line of said Section 35;

 THENCE South 00 degrees 08 minutes 41 seconds West, along said mid-section line, 164.69 feet to the POINT OF BEGINNING.

 EXCEPT one-half of all oil and mineral rights as reserved in instrument recorded in Book 124, page 39, records of Maricopa
County, Arizona; and also 
 EXCEPT all oil gas, other hydrocarbon substances, helium or other substances of a gaseous nature,
coal, metals, minerals, fossils, fertilizer of every name and description; and also 
 EXCEPT all uranium, thorium or any other
material which is or may be determined to be peculiarly essential to the production of fissionable materials whether or not of commercial value, as set forth in Section 37-231, Arizona Revised Statutes. 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 Parcel No. 4: 
 That portion of the Southeast quarter of Section 35,
Township 4 North, Range 4 East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, described as follows: 

COMMENCING at the Southeast corner of said Section 35; 
 THENCE North 00 degrees 08 minutes 48 seconds East, along the East line of said Southeast quarter, 2145.40 feet; 
 THENCE North 89 degrees 51 minutes 09 seconds West, 1858.64 feet to the POINT OF BEGINNING; 
 THENCE continuing North 89 degrees 51 minutes 09 seconds West, 782.42 feet to the West line of said Southeast quarter; 
 THENCE South 00 degrees 08 minutes 41 seconds West, along said West line 60.00 feet (57.42 feet, measured); 
 THENCE South 74 degrees 58 minutes 57 seconds East, 337.32 feet to the beginning of a curve concave Southwesterly, having a radius of 300.00 feet; 

THENCE Southeasterly along said curve through a central angle of 35 degrees 25 minutes 14 seconds, an arc distance of 185.46 feet;

 THENCE South 39 degrees 33 minutes 43 seconds East, 125.23 feet to the beginning of a curve concave Northeasterly, having a
radius of 1000.00 feet; 
 THENCE Southeasterly, along said curve, through a central angle of 06 degrees 22 minutes 13 seconds,
an arc distance of 111.18 feet; 
 THENCE North 44 degrees 04 minutes 04 seconds East, 211.86 feet; 

THENCE North 00 degrees 08 minutes 43 seconds East, 270.00 (267.42 feet, measured) feet to the POINT OF BEGINNING; 

EXCEPT one-half of all oil and mineral rights as reserved in instrument recorded in Docket 124, page 39, records of Maricopa County,
Arizona. 
 Parcel No. 5: 
 That portion of the Northeast quarter of the Southwest quarter of Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, described as
follows: 
 COMMENCING at the center of said Section 35; 

THENCE South 00 degrees 08 minutes 41 seconds West, along the North-South mid-section line of said Section 35, a distance of 232.27
feet to the POINT OF BEGINNING; 
 THENCE continuing South 00 degrees 08 minutes 41 seconds West, along said mid-section line,
431.30 feet; 
 THENCE North 74 degrees 58 minutes 57 seconds West, 6.41 feet to the beginning of a curve concave to the
Northeast, having a radius of 444.50 feet; 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 THENCE Northwesterly along said curve through a central angle of 75 degrees 09 minutes 12 seconds, an arc distance of 583.04 feet; 
 THENCE South 89 degrees 49 minutes 46 seconds East, 336.61 feet to the POINT OF BEGINNING; 
 EXCEPT one-half of all oil and mineral rights as reserved in instrument recorded in Docket 124, page 39, records of Maricopa County, Arizona. 

Parcel No. 6: 
 That portion of the Northeast quarter of the Southwest quarter of Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, described as
follows: 
 BEGINNING at the center Section 35; 
 THENCE South 00 degrees 08 minutes 41 seconds West, along the North-South mid-section line of said Section 35, a distance of 232.27 feet; 

THENCE North 89 degrees 49 minutes 46 seconds West, 392.11 feet; 

THENCE North 00 degrees 10 minutes 14 seconds East, 232.27 feet to the East-West mid-section line of said Section 35; 

THENCE South 89 degrees 49 minutes 46 seconds East, along said East-West mid-section line, 392.00 feet to the POINT OF BEGINNING;

 EXCEPT one-half of all oil and mineral rights as reserved in instrument recorded in Docket 124, page 39, records of Maricopa
County, Arizona. 
 Parcel No. 7: 
 That portion of the Northeast one-quarter of the Southwest one-quarter of Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, described
as follows: 
 COMMENCING at the center of said Section 35; 

THENCE North 89 degrees 49 minutes 46 seconds West along the East-West mid-section line of said Section 35, a distance of 392.00
feet to the TRUE POINT OF BEGINNING; 
 THENCE South 00 degrees 10 minutes 14 seconds West, 232.27 to the beginning of a curve
concave to the East having a radius of 500.00 feet; 
 THENCE Southerly along said curve through a central angle of 16 degrees
17 minutes 57 seconds an arc distance of 142.24 feet; 
 THENCE North 89 degrees 49 minutes 46 seconds West, 385.35 feet to the
beginning of a curve concave to the Southeast having a radius of 100.00 feet; 
 THENCE Southwesterly along said curve through a
central angle of 49 degrees 35 minutes 38 seconds, an arc distance of 86.56 feet to the point of tangency; 
 THENCE South 40
degrees 34 minutes 36 seconds West, 352.13 feet; 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 THENCE North 49 degrees 25 minutes 14 seconds West, 59.77 feet to the beginning of a curve concave to the Southwest having a radius of 250.00 feet; 

THENCE Northwesterly along said curve through a central angle of 51 degrees 43 minutes 26 seconds, an arc distance of 225.69 feet to the
point of tangency; 
 THENCE South 78 degrees 51 minutes 20 seconds West, 4.33 feet to the West line of said Northeast
one-quarter; 
 THENCE North 00 degrees 01 minutes 45 seconds East, 507.05 feet along said West line to the beginning of a
non-tangent curve concave to the Southeast having a radius of 805.00 feet and a radial bearing to said beginning being South 24 degrees 57 minutes 36 seconds East; 
 THENCE Northeasterly along said curve through a central angle of 25 degrees 07 minutes 50 seconds, an arc distance of 353.08 feet to the point of tangency said point lying on the North line of said
Northeast one-quarter; 
 THENCE South 89 degrees 49 minutes 46 seconds East, 589.90 feet along the North line of said Northeast
one-quarter to the POINT OF BEGINNING; 
 EXCEPT one-half of all oil and mineral rights as reserved in instrument recorded in
Docket 124, page 39, records of Maricopa County, Arizona. 
 Parcel No. 8: 

A nonexclusive easement for ingress and egress by or pursuant to that certain “Easement and Maintenance Agreement” dated
November 21, 1986 and recorded December 2, 1986 in Document No. 86-664157, records of Maricopa County, Arizona. 

Parcel No. 9: 
 A nonexclusive easement for ingress and egress by or pursuant to that certain “Reciprocal Easement and Maintenance Agreement” dated November 21, 1986 and recorded December 2, 1986 in
Document No. 86-664160, records of Maricopa County, Arizona. 
 Parcel No. 10: 

A nonexclusive easement for ingress and egress and utilities by or pursuant to that certain “Reciprocal Easement Agreement,
Construction and Maintenance Agreement, and Covenants, Conditions and Restrictions” dated April 19, 2006, and recorded April 19, 2006, in Document No. 20060523599, records of Maricopa County, Arizona. 

Parcel No. 11: 
 A nonexclusive easement for ingress and egress, utilities and other purposes by or pursuant to that certain “Declaration of Easements and Covenants, Conditions and Restrictions” dated
October 28, 1986, and recorded December 12, 1986, in Document No. 86-688089, records of Maricopa County, Arizona. 
 Parcel No. 12: 
 A nonexclusive easement for ingress and egress by or
pursuant to that certain “Master Declaration of Covenants, Conditions and Restrictions for Scottsdale Princess/Eagle” dated August 19, 1986, and recorded August 20, 1986, in Document No. 86-444862, records of Maricopa
County, Arizona. 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 Parcel No. 13: 
 An easement for roadway over that portion of Tracts 3A, 11
and 12, State Plat No. 16 - Core South, according to Book 324 of Maps, page 50, Records of Maricopa County, Arizona, lying within the Northwest quarter of Section 35, Township 4 North, Range 4 East, Gila and Salt River Base and Meridian,
depicted thereon as Princess Boulevard. 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 CHICAGO TITLE INSURANCE COMPANY 
 SCHEDULE B 

Policy No. CT1103006-CT2946 
 EXCEPTIONS FROM COVERAGE 
 This policy does not insure against loss or
damage (and the Company will not pay costs, attorneys’ fees or expenses) which arise by reason of: 
  

	 	1.	 Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the year 2011.

  

	 	2.	 Intentionally deleted. 

  

	 	3.	 Reservations, exceptions and provisions contained in the patent and in the acts authorizing the issuance thereof. 

 

	 	4.	 Water rights, claims or title to water, whether or not disclosed by the public records. 

 

	 	5.	 The right of entry to prospect for, mine and remove the minerals excepted from the description of said Land in Schedule A.

  

	 	6.	 ANY UNPAID personal property taxes not yet due and payable, which may become a lien on the property by reason of the leasehold interest in Parcel
No. 1. None due and payable as of Date of Policy. 

  

	 	7.	 Covenants, conditions, restrictions and easements but omitting any covenants or restrictions, if any, including but not limited to those based upon
race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or
restriction is permitted by applicable law, as set forth in the document 

 Recording No.:
86-444862 
  

	 	8.	 TERMS, COVENANTS, PROVISIONS and EASEMENTS contained in an “Easement and Maintenance Agreement” recorded in Document No. 86-664152.

 Thereafter a Clarification of Easement Rights recorded in Document No. 87-283748 and
Document No. 88-084414. 
  

	 	9.	 TERMS, COVENANTS, PROVISIONS and EASEMENTS contained in a “Declaration of Easements and Covenants, Conditions and Restrictions Buffer
Zone” recorded in Document No. 86-664153, and re-recorded in Document No. 87-092569. 

 Thereafter a Clarification of Easement Rights recorded in Document No. 87-283748 and Document No. 88-084414. 
  

	 	10.	 TERMS, COVENANTS and PROVISIONS of an “Easement and Maintenance Agreement” recorded in Document No. 86-664157.

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
  

	 	11.	TERMS, COVENANTS, PROVISIONS and EASEMENTS contained in a “Reciprocal Easement and Maintenance Agreement” recorded in Document No. 86-664160.

  

	 	12.	TERMS, COVENANTS AND PROVISIONS of a “Declaration of Easements and Covenants, Conditions and Restrictions” recorded in Document No. 86-688089.

 (Affects Parcel No. 11) 
  

	 	13.	EASEMENTS as shown on the plat of “Princess Views” recorded in Book 304 of Maps, page 46. 

Purpose: public utilities and vehicular non-access 
 (Affects Parcel No. 3) 
  

	 	14.	EASEMENT and rights incident thereto, as set forth in instrument: 

 Recorded in Document No. 87-367632 
 Purpose water line 

(Affects Parcel No. 2) 
  

	 	15.	EASEMENT and rights incident thereto, as set forth in instrument: 

 Recorded in Document No. 87-583827 
 Purpose telecommunication lines and
facilities 
 (Affects Parcel No. 4) 
  

	 	16.	EASEMENT and rights incident thereto, as set forth in instrument: 

 Recorded in Document No. 93-0663017 
 Purpose public street and public
utilities 
 As modified by Ordinance recorded as Document No. 19990222809, by which the City of Scottsdale vacated the public
right-of-way known as Princess Drive, subject to reservation for a public utility easement, emergency vehicle access easement and service vehicle access easement. 
  

	 	17.	UNRECORDED LEASE under the terms and conditions of an unrecorded lease made by: 

 Lessor: Scottsdale Princess Partnership, an Arizona general partnership 
 Lessee:
Southwestco Wireless, L.P., a Delaware limited partnership, dba Cellular One 
 Dated: November 14, 1995 

As disclosed by Memorandum of Lease Agreement 
 Recorded: November 28, 1995 
 Document No. 95-0729584 

(Affects No. 1) 
  

	 	18.	TERMS, COVENANTS AND PROVISIONS of a “Wall and Sign Agreement and Third Amendment to Lease” recorded in Document No. 2003-0675900. and the “Seventh
Amendment to Recreational Land Use Agreement” recorded in Document No. 2003-0674677. 

  

	 	19.	Intentionally deleted. 

  

	 	20.	TERMS, COVENANTS, PROVISIONS and EASEMENTS contained in a “Reciprocal Easement Agreement, Construction and Maintenance Agreement, and Covenants, Conditions and
Restrictions” recorded in Document No. 2006-0523599. 

 (Affects Parcel Nos. 1, 2 and 7) 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
  

	 	21.	 Intentionally deleted. 

  

	 	22.	 Intentionally deleted. 

  

	 	23.	 AGREEMENT according to the terms and conditions contained therein: 

 

			
	 Purpose Non-Disturbance Dated September 01, 2006 Recorded September 06, 2006

	 Document No. 2006-1183791

  

	 	24.	 AGREEMENT according to the terms and conditions contained therein: 

 

			
	 Purpose Hotel Management Dated September 01, 2006 Recorded September 06, 2006

	 Document No. 2006-1183792

 As assigned to Walton/SHR FSP, LLC by the instrument recorded                     , 2011 at
Recording No.             . 
  

	 	25.	 AGREEMENT according to the terms and conditions contained therein: 

 

			
	 Purpose Residential Expansion Dated September 01, 2006 Recorded September 06, 2006

	 Document No. 2006-1183793

  

	 	26.	 UNRECORDED LEASE under the terms and conditions contained therein made by: 

Lessor SHR Scottsdale, LLC, a Delaware limited liability company 

Lessee Verizon Wireless (VAW) LLC, a Delaware limited liability company, d/b/a Verizon Wireless 

Dated October 1, 1993 and thereafter amended 

As disclosed by Memorandum Recorded September 23, 2009 Document No. 2009-883923 

 

	 	27.	 Terms and conditions of the easement described as Parcel 13 in Schedule A. 

 

	 	28.	 Intentionally deleted. 

  

	 	29.	 A deed of trust to secure an indebtedness in the amount shown below, 

 

					
		 	 Amount:
	    	 $180,000,000.00

		 	 Dated:
	    	 September 1, 2006

		 	 Trustor/Grantor:
	    	 SHR Scottsdale X, L.L.C., a Delaware limited liability company and SHR Scottsdale Y, L.L.C., a Delaware limited liability company

		 	 Trustee:
	    	 First American Title Insurance Company

		 	 Beneficiary:
	    	 Citigroup Global Markets Reality Corporation, a New York corporation

		 	 Recording Date:
	    	 September 6, 2006

		 	 Recording No:
	    	 2006-1183787

		
		 	 An assignment of the beneficial interest under said deed of trust which names:

			
		 	 Assignee:
	    	 LaSalle Bank National Association, as Trustee for the Registered Holders of The Citigroup Commercial Mortgage Trust 2007-FL3, Commercial Mortgage Pass-Through
Certificates, Series 2007-FL3

		 	 Recording Date:
	    	 October 15, 2007

		 	 Recording No:
	    	 2007-111963

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 As modified by MEMORANDUM OF RESTRUCTURING AGREEMENT Dated: June     , 2011 by and among BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL
ASSOCIATION, AS TRUSTEE FOR THE REGISTERED HOLDERS OF CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3, Lender, SHR SCOTTSDALE, LLC, a Delaware limited liability company, Borrower, And DTRS
SCOTTSDALE, L.L.C., a Delaware limited liability company, Operating Lessee, recorded                      as Document No.
                     

As modified by ASSUMPTION AGREEMENT dated June     , 2011 by and among SHR SCOTTSDALE, L.L.C., a Delaware
limited liability company, Original Borrower. FMT SCOTTSDALE OWNER, LLC, a Delaware limited liability company, New Borrower, STRATEGIC HOTEL FUNDING, L.L.C., a Delaware limited liability company, Original Guarantor, WALTON STREET REAL ESTATE FUND
VI, L.P.; WALTON STREET REAL ESTATE FUND VI-Q, L.P.; WALTON STREET REAL ESTATE FUND VI-E, L.P.; WALTON STREET REAL ESTATE INVESTORS VI, L.P.; WALTON STREET REAL ESTATE PARTNERS VI, L.P.; WALTON STREET REAL ESTATE PARTNERS VI-NGE, L.P.; and WSC
CAPITAL HOLDINGS VI, L.P., each a Delaware limited partnership, collectively, New Guarantor, DTRS SCOTTSDALE, L.L.C., a Delaware limited liability company, Original Operating Lessee, WALTON/SHR FPH, LLC, a Delaware limited liability company, New
Operating Lessee and BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE REGISTERED HOLDERS OF CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3 COMMERCIAL MORTGAGE PASS-THROUGH
CERTIFICATES, SERIES 2007-FL3, Lender recorded                      as Document No.
                     

As modified by MODIFICATION AND SPREADER AGREEMENT dated June     , 2011 by and among, FMT SCOTTSDALE Owner,
LLC, a Delaware limited liability company, Borrower, WALTON/SHR FPH, LLC, a Delaware limited liability company. Operating Lessee and BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE
REGISTERED HOLDERS OF CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3, Lender, recorded
                     as Document No.
                    . 

As further modified by OPERATING LEASE SUBORDINATION AGREEMENT, dated as of June     , 2011 by and among, FMT
SCOTTSDALE OWNER, LLC, a Delaware limited liability company, as Fee Owner, Walton/SHR FPH, LLC, a Delaware limited liability company, as Operating Lessee, and BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL
ASSOCIATION, AS TRUSTEE FOR THE REGISTERED HOLDERS OF CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3, as Lender recorded
                     as Document No.
                    . 
  

	 	30.	Assignment of Leases, Rents, Hotel Revenue and Security Deposits 

  

			
	 Executed by:
	  	SHR Scottsdale X, L.L.C., a Delaware limited liability company and SHR Scottsdale Y, L.L.C., a Delaware limited liability company
	 To:
	  	Citigroup Global Markets Realty Corporation, a New York corporation

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  

			
	Recording Date:	    	September 9, 2006
	Recording No:	    	2006-1183788
	and thereafter assigned to LaSalle Bank National Association, as Trustee for the Registered Holders of The Citigroup Commercial Mortgage Trust 2007-FL3, Commercial
Mortgage Pass-Through Certificates, Series 2007-FL3 recorded in Recording No. 2007-1119631

 As modified by
MEMORANDUM OF RESTRUCTURING AGREEMENT Dated: June     , 2011 by and among BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE REGISTERED HOLDERS OF CITIGROUP
COMMERCIAL MORTGAGE TRUST 2007-FL3, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3, Lender, SHR SCOTTSDALE, LLC, a Delaware limited liability company, Borrower, And DTRS SCOTTSDALE, L.L.C., a Delaware limited liability company,
Operating Lessee, recorded                      as Document No.
                     

As modified by ASSUMPTION AGREEMENT dated June     , 2011 by and among SHR SCOTTSDALE, L.L.C., a Delaware
limited liability company, Original Borrower. FMT SCOTTSDALE OWNER, LLC, a Delaware limited liability company, New Borrower, STRATEGIC HOTEL FUNDING, L.L.C., a Delaware limited liability company, Original Guarantor, WALTON STREET REAL ESTATE FUND
VI, L.P.; WALTON STREET REAL ESTATE FUND VI-Q, L.P.; WALTON STREET REAL ESTATE FUND VI-E, L.P.; WALTON STREET REAL ESTATE INVESTORS VI, L.P.; WALTON STREET REAL ESTATE PARTNERS VI, L.P.; WALTON STREET REAL ESTATE PARTNERS VI-NGE, L.P.; and WSC
CAPITAL HOLDINGS VI, L.P., each a Delaware limited partnership, collectively, New Guarantor, DTRS SCOTTSDALE, L.L.C., a Delaware limited liability company, Original Operating Lessee, WALTON/SHR FPH, LLC, a Delaware limited liability company, New
Operating Lessee and BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE REGISTERED HOLDERS OF CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3 COMMERCIAL MORTGAGE PASS-THROUGH
CERTIFICATES, SERIES 2007-FL3, Lender recorded                      as Document No.
                     

As modified by MODIFICATION AND SPREADER AGREEMENT dated June     , 2011 by and among, FMT SCOTTSDALE Owner,
LLC, a Delaware limited liability company, Borrower, WALTON/SHR FPH, LLC, a Delaware limited liability company. Operating Lessee and BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE
REGISTERED HOLDERS OF CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3, Lender, recorded
                     as Document No.
                    . 

As further modified by OPERATING LEASE SUBORDINATION AGREEMENT, dated as of June     , 2011 by and among, FMT
SCOTTSDALE OWNER, LLC, a Delaware limited liability company, as Fee Owner, Walton/SHR FPH, LLC, a Delaware limited liability company, as Operating Lessee, and BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL
ASSOCIATION, AS TRUSTEE FOR THE REGISTERED HOLDERS OF CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3, as Lender recorded
                     as Document No.
                    . 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
  

	 	31.	A financing statement as follows: 

  

			
	Debtor:	    	SHR Scottsdale X, L.L.C
	Secured Party:	    	Citigroup Global Markets Realty Corp
	Recording Date:	    	September 6, 2006
	Recording No.:	    	2006-1183789
	and thereafter assigned to LaSalle Bank National Association, as Trustee for the Registered Holders of The Citigroup Commercial Mortgage Trust 2007-FL3, Commercial
Mortgage Pass-Through Certificates, Series 2007-FL3 by instrument recorded in Recording No. 2007-1119632

  

	 	32.	A financing statement as follows: 

  

			
	Debtor:	    	SHR Scottsdale Y, L.L.C.,
	Secured Party:	    	Citigroup Global Markets Realty Corp
	Recording Date:	    	September 6, 2006
	Recording No.:	    	2006-1183790
	and thereafter assigned to LaSalle Bank National Association, as Trustee for the Registered Holders of The Citigroup Commercial Mortgage Trust 2007-FL3, Commercial
Mortgage Pass-Through Certificates, Series 2007-FL3 by instrument recorded in Recording No. 2007-1119633

  

	 	33.	Terms, covenants, conditions and provisions of the lease described or referred to in Schedule A. 

 

	 	34.	Intentionally deleted. 

  

	 	35.	Rights of tenants, as tenants only, under unrecorded leases, as shown on the attached Exhibit A. 

 

	 	36.	The following matters as shown on the ALTA/ACSM Survey prepared by Gabriel S. Rios, dated March 28, 2011, last revised June 3, 2011, as Job Number 103555:

  

	 	a.	Roadway meanders outside of the 30 foot ingress/egress and utility easement at various points, by a maximum distance of 13.0 feet; 

 

	 	b.	Encroachment of sign into the 71 foot public street and utilities easement; the 71 foot ingress-egress easement, public utility easement and emergency service vehicle
access easement; the 71 foot telecommunications easement; and the 111 foot buffer easement area along the north line of Parcel 1; 

  

	 	c.	Encroachment of building into the 12 foot waterline easement located in the north portion of Parcel 2; 

 

	 	d.	Encroachment of fence onto the property south and adjoining Parcel 2. 

 The Company hereby insures the Insured against loss or damage which the Insured shall sustain by reason of the entry of any court order or judgment which constitutes a final determination and denies the
right to maintain the existing improvements on the Land because of the encroachments specifically set forth above at Exception 36b. 
 ALTA 28 Endorsement approved as to Exception 36c. 
  

	 	37.	OPERATING LEASE SUBORDINATION AGREEMENT, dated as of June     , 2011 by and among, FMT SCOTTSDALE OWNER, LLC, a Delaware limited liability
company, as Fee Owner, Walton/SHR FPH, LLC, a Delaware limited liability company, as Operating Lessee, and 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  

	 	 
BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE REGISTERED HOLDERS OF THE CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3, as Lender recorded                      as Document No.
                    . 

  

	 	38.	UCC-1 naming WALTON/SHR FPH, LLC, as Debtor and BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE
REGISTERED HOLDERS OF THE CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3, as Secured Party recorded
                     as Document No.
                    . 

  

	 	39.	UCC-1 naming FMT SCOTTSDALE OWNER, LLC, as Debtor and BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR
THE REGISTERED HOLDERS OF THE CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3, as Secured Party recorded
                     as Document No.
                    . 

  

	 	40.	This policy is issued contemporaneously with a $60,000,000.00 policy of First American Title Insurance Company, Policy No. NCS 489447, all such contemporaneous policies
totaling $200,000,000.00, and it is understood and agreed that for all loss or aggregate losses against which said policies protect, the Company shall bear only 70.00% of any such loss, and in no event shall the Company be liable for loss in excess
of the face amount of this policy. 

 END 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 Exhibit A 
 Concession Agreement entered into as of July 1, 2009 by and between
DTRS Scottsdale, LLC (d/b/a Fairmont Scottsdale) (“Assignor”) and Go Rents; as assigned by Assignor to Walton/SHR FSH, LLC pursuant to that certain Assignment and Assumption Agreement dated
                    , 2011. 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 The Company insures against loss or damage sustained by the Insured by reason of: 
  

	1.	The existence, at Date of Policy, of any of the following unless expressly excepted in Schedule B: 

 

	 	a.	Present violations on the Land of any enforceable covenants, conditions, or restrictions, or any existing improvements on the Land that violate any building setback
lines shown on a plat of subdivision recorded or filed in the Public Records. 

  

	 	b.	Any instrument referred to in Schedule B as containing covenants, conditions, or restrictions on the Land that, in addition, (i) establishes an easement on the
Land; (ii) provides for an option to purchase, a right of first refusal, or the prior approval of a future purchaser or occupant; or (iii) provides a right of reentry, possibility of reverter, or right of forfeiture because of violations
on the Land of any enforceable covenants, conditions, or restrictions. 

  

	 	c.	Any encroachment of existing improvements located on the Land onto adjoining land, or any encroachment onto the Land of existing improvements located on adjoining land.

  

	 	d.	Any encroachment of existing improvements located on the Land onto that portion of the Land subject to any easement excepted in Schedule B. 

 

	 	e.	Any notices of violation of covenants, conditions, or restrictions relating to environmental protection recorded or filed in the Public Records.

  

	2.	Damage to existing buildings 

  

	 	a.	That are located on or encroach upon that portion of the Land subject to any easement excepted in Schedule B, which damage results from the exercise of the right to
maintain the easement for the purpose for which it was granted or reserved; 

  

	 	b.	Resulting from the future exercise of any right existing at Date of Policy to use the surface of the Land for the extraction or development of minerals excepted from
the description of the Land or excepted in Schedule B. 

  

	3.	Any final court order or judgment requiring the removal from any land adjoining the Land of any encroachment, other than fences, landscaping, or driveways, excepted in
Schedule B. 

  

	4.	Any final court order or judgment denying the right to maintain any existing building on the Land because of any violation of covenants, conditions, or restrictions, or
building setback lines shown on a plat of subdivision recorded or filed in the Public Records. 

 Wherever in this endorsement the
words “covenants, conditions, or restrictions” appear, they shall not be deemed to refer to or include the terms, covenants, conditions, or limitations contained in an instrument creating a lease. 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 As used in paragraphs 1.a. and 4, the words “covenants, conditions, or restrictions” do not include any covenants, conditions, or restrictions (a) relating to obligations of any type to
perform maintenance, repair, or remediation on the Land, or (b) pertaining to environmental protection of any kind or nature, including hazardous or toxic matters, conditions, or substances, except to the extent that a notice of a violation or
alleged violation affecting the Land has been recorded or filed in the Public Records at Date of Policy and is not excepted in Schedule B. 

This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the
policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this
endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 

 

			
		 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

 ALTA
Endorsement — Form 9.2-06 
 (Restrictions, Encroachments, Minerals – Owner’s Policy – Improved Land –
6/17/06) 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 AS TO PARCEL 1 THROUGH 6 ONLY 
 1. The Company insures against loss or damage
sustained by the Insured in the event that, at Date of Policy, 
  

	 	a.	According to applicable zoning ordinances and amendments, the Land is not classified zone C-2 PCD. 

 

	 	b.	The following use or uses are not allowed under that classification: Hotel/Resort. 

 

	 	c.	There shall be no liability under this paragraph 1 .b. if the use or uses are not allowed as the result of any lack of compliance with any conditions, restrictions, or
requirements contained in the zoning ordinances and amendments, including but not limited to the failure to secure necessary consents or authorizations as a prerequisite to the use or uses. The paragraph 1.c. does not modify or limit the coverage
provided in Covered Risk 5. 

 2. The Company further insures against loss or damage sustained by the Insured by reason of a final
decree of a court of competent jurisdiction 
  

	 	a.	Prohibiting the use of the Land, with any existing structure, as Insured in paragraph 1.b.; or 

 

	 	b.	Requiring the removal or alteration of the structure on the basis that, at Date of Policy, the zoning ordinances and amendments have been violated with respect to any
of the following matters: 

  

	 	i.	Area, width, or depth of the Land as a building site for the structure 

  

	 	ii.	Floor space area of the structure 

  

	 	iii.	Setback of the structure from the property lines of the Land 

  

	 	iv.	Height of the structure, or 

  

	 	v.	Number of parking spaces. 

 3. There shall be no
liability under this endorsement based on 
  

	 	a.	The invalidity of the zoning ordinances and amendments until after a final decree of a court of competent jurisdiction adjudicating the invalidity, the effect of which
is to prohibit the use or uses; 

  

	 	b.	The refusal of any person to purchase, lease or lend money on the estate or interest covered by this policy. 

This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the
policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this
endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 

 

			
	 	 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

ALTA Endorsement — Form 3.1-06 
 (Zoning – Completed Structure – 6/17/06) 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 AS TO PARCEL 7 ONLY 
 1. The Company insures against loss or damage sustained by the
Insured in the event that, at Date of Policy, 
  

	 	a.	According to applicable zoning ordinances and amendments, the Land is not classified zone: C-2 PCD. 

 

	 	b.	The following use or uses are not allowed under that classification: Hotel/Resort. 

 2. There shall be no liability under this endorsement based on 
  

	 	a.	Lack of compliance with any conditions, restrictions, or requirements contained in the zoning ordinances and amendments, including but not limited to the failure to
secure necessary consents or authorizations as a prerequisite to the use or uses. This paragraph 2.a. does not modify or limit the coverage provided in Covered Risk 5. 

 

	 	b.	The invalidity of the zoning ordinances and amendments until after a final decree of a court of competent jurisdiction adjudicating the invalidity, the effect of which
is to prohibit the use or uses. 

  

	 	c.	The refusal of any person to purchase, lease or lend money on the estate or interest covered by this policy. 

This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the
policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this
endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 

 

			
	 	 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

ALTA Endorsement — Form 3-06 
 (Zoning – Unimproved Land – 6/17/06) 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 The Company insures against loss or damage sustained by the Insured if, at Date of Policy, (i) the Land does not abut and have both actual vehicular and pedestrian access to and from Princess
Boulevard (the “Street”), (ii) the Street is not physically open and publicly maintained, or (iii) the Insured has no right to use existing curb cuts or entries along that portion of the Street abutting the Land. 

This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the
policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this
endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 

 

			
	 	 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

ALTA Endorsement — Form 17-06 
 (Access & Entry – 6/17/06) 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 The Company insures against loss or damage sustained by the Insured if, at Date of Policy (i) the easement identified Parcel 10 in Schedule A does not provide that portion of the Land identified as
Parcel 1 and Parcel 2 in Schedule A both vehicular and pedestrian access to and from Princess Boulevard, and the easement identified as Parcel 12 in Schedule A (Princess Drive) (collectively, the “Easements”), does not provide that
portion of the Land identified as Parcels 1 through 7 in Schedule A, both actual vehicular and pedestrian access to and from Princess Boulevard and Hayden Road, (the “Street”), (ii) the Street is not physically open and
publicly maintained, or (iii) the Insured has no right to use existing curb cuts or entries along that portion of the Street abutting the Easements. 
 This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements,
(iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 
  

			
	 	 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

ALTA Endorsement — Form 17.1-06 
 (Indirect Access & Entry – 6/17/06) 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 The Company insures against loss or damage sustained by the Insured by reason of: 
  

	1.	Those portions of the Land identified below not being assessed for real estate taxes under the listed tax identification numbers or those tax identification numbers
including any additional land: 

 215-08-001J (Affects a portion of Parcel 1) 

215-08-001K (Affects Parcel 4) 
 215-08-001L (Affects Parcel 5) 
 215-08-001M (Affects a portion of Parcel 7)

 215-08-001N (Affects Parcel 6) 
 215-08-00IX (Affects a portion of Parcel 1) 
 215-08-001Y (Affects a portion of
Parcel 1) 
 215-08-003A (Affects a portion of Parcel 1) 
 215-08-003B (Affects a portion of Parcel 1) 
 215-08-133 (Affects a portion of
Parcel 7) 
 215-08-135 (Affects Parcel 3) 
 215-08-003C (Affects Parcel 2) 
  

	2.	The easements, if any, described in Schedule A being cut off or disturbed by the nonpayment of real estate taxes assessed against the servient estate.

 This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms
and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an
express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 

 

			
	 	 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

ALTA Endorsement — Form 18.1-06 
 (Multiple Tax Parcel – 6/17/06) 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 The Company insures against loss or damage sustained by the Insured by reason of: 
  

	1.	The failure of the parcels of Land described in Schedule A to be contiguous; or 

 

	2.	The presence of any gaps, strips, or gores separating any of the contiguous boundary lines described above. 

This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the
policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this
endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 

 

			
	 	 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

ALTA Endorsement — Form 19-06 
 (Contiguity – Multiple Parcels – 6/17/06) 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 The Company insures against loss or damage sustained by the Insured by reason of the failure of The Fairmont Scottsdale Princess Resort, with an address of 7575 E. Princess Drive, Scottsdale, Arizona, to
be located on the Land at Date of Policy. 
 This endorsement is issued as part of the policy. Except as it expressly states, it does not
(i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous
endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 

 

			
	 	 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

ALTA Endorsement — Form 22-06 
 (Location – 6/17/06) 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 The Company insures against loss or damage sustained by the Insured by reason of the failure of the Land as described in Schedule A to be the same as that identified on the ALTA/ACSM Survey prepared by
Gabriel S. Rios, dated March 28, 2011, last revised June 3, 2011, as Job Number 103555. 
 This endorsement is issued as part of the
policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the
extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any
prior endorsements. 
  

			
	 	 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

ALTA Endorsement 25-06 (Same as Survey) 
 Adopted 10/16/08 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 AS TO PARCEL 1 ONLY 
  

	1.	As used in this endorsement, these terms shall mean the following: 

  

	 	a.	“Evicted” or “Eviction”: (a) the lawful deprivation, in whole or in part, of the right of possession insured by this policy, contrary to the
terms of the Lease or (b) the lawful prevention of the use of the Land or the Tenant Leasehold Improvements for the purposes permitted by the Lease, in either case as a result of a matter covered by this policy. 

 

	 	b.	“Lease”: the ground lease agreement described in Schedule A. 

  

	 	c.	“Leasehold Estate”: the right of possession for the Lease Term. 

  

	 	d.	“Lease Term”: the duration of the Leasehold Estate, including any renewal or extended term if a valid option to renew or extend is contained in the Lease.

  

	 	e.	“Personal Property”: chattels located on the Land and property which, because of their character and manner of affixation to the Land, can be severed from the
Land without causing appreciable damage to themselves or to the Land to which they are affixed. 

  

	 	f.	“Remaining Lease Term”: the portion of the Lease Term remaining after the Insured has been Evicted as a result of a matter covered by this policy.

  

	 	g.	“Tenant Leasehold Improvements”: Those improvements, including landscaping, required or permitted to be built on the Land by the Lease that have been built at
the Insured’s expense or in which the Insured has an interest greater than the right to possession during the Lease Term. 

  

	2.	Valuation of Estate or Interest Insured 

 If in
computing loss or damage it becomes necessary to value the Title as the result of a covered matter that results in an Eviction of the Tenant, then that value shall consist of the value for the Remaining Lease Term of the Leasehold Estate and any
Tenant Leasehold Improvements existing on the date of the Eviction. The Insured Claimant shall have the right to have the Leasehold Estate and the Tenant Leasehold Improvements valued either as a whole or separately. In either event, this
determination of value shall take into account rent no longer required to be paid for the Remaining Lease Term. 
  

	3.	Additional items of loss covered by this endorsement 

 If the Insured is Evicted, the following items of loss, if applicable, shall be included in computing loss or damage incurred by the Insured, but not to the extent that the same are included in the
valuation of the Title. 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 a. The reasonable cost of removing and relocating any Personal Property that the Insured has the right to remove and relocate, situated on the Land at the time of Eviction, the cost of transportation of
that Personal Property for the initial one hundred miles incurred in connection with the relocation, and the reasonable cost of repairing the Personal Property damaged by reason of the removal and relocation. 

b. Rent or damages for use and occupancy of the Land prior to the Eviction that the Insured as owner of the Leasehold Estate may be obligated to pay to
any person having paramount title to that of the lessor in the Lease. 
 c. The amount of rent that, by the terms of the Lease, the Insured must
continue to pay to the lessor after Eviction with respect to the portion of the Leasehold Estate and Tenant Leasehold Improvements from which the Insured has been Evicted. 
 d. The fair market value, at the time of the Eviction, of the estate or interest of the Insured in any lease or sublease made by Tenant as lessor of all or part of the Leasehold Estate or the Tenant
Leasehold Improvements. 
 e. Damages that the Insured is obligated to pay to lessees or sublessees on account of the breach of any lease or
sublease made by the Tenant as lessor of all or part of the Leasehold Estate or the Tenant Leasehold Improvements caused by the Eviction. 
 f.
Reasonable costs incurred by the Insured to secure a replacement leasehold equivalent to the Leasehold Estate. 
 g. If Tenant Leasehold
Improvements are not substantially completed at the time of Eviction, the actual cost incurred by the Insured, less the salvage value, for the Tenant Leasehold Improvements up to the time of Eviction. Those costs include costs incurred to obtain
land use, zoning, building and occupancy permits, architectural and engineering fees, construction management fees, costs of environmental testing and reviews, and landscaping costs. 
 This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements,
(iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements to it. 
  

			
	 	 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

ALTA Endorsement — Form 13-06 
 (Owner’s Leasehold – 6/17/06) 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 SUBJECT TO UNDERWRITING APPROVAL 
 ENDORSEMENT 

ATTACHED TO POLICY NO. CT1103006-CT2946 
 ISSUED BY 
 CHICAGO TITLE INSURANCE COMPANY 

The Company agrees that it will not assert the provisions of Exclusions from Coverage 3(a), (b), or (e) to deny liability for loss
or damage otherwise insured against under the terms of the policy solely by reason of the action or inaction or Knowledge, as of Date of Policy, of 
 [TO BE DETERMINED] 
 imputed to the entity identified in paragraph 3 of Schedule A
or to the Insured by operation of law, but only to the extent that the Insured acquired the Insured’s interest in entity as a purchaser for value without Knowledge of the asserted defect, lien, encumbrance, adverse claim, or other matter
insured against by the policy. 
 This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify
any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is
inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements to it. 

 

			
	 	 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

ALTA Endorsement — Form 15.2-06 
 (Nonimputation – Partial Equity Transfer – 6/17/06) 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 The Company hereby insures the Insured against loss which the insured shall sustain by reason of damage to existing or future improvements, including lawns, shrubbery or trees, resulting from the
enforcement of any of the reservations contained in the patent to said land as shown in Exception 3 of Schedule B. 
 This endorsement is issued
as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of
Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the
policy and of any prior endorsements. 
  

			
	 	 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

Patent Endorsement 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 The Company insures against loss or damage sustained by the Insured by reason of damage to existing or future improvements, including lawns, shrubbery or trees, resulting from the exercise of any right to
use the surface of the Land for the extraction or development of water excepted from the description of the Land or shown as a reservation in Schedule B. 
 This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements,
(iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 
  

			
	 	 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

CLTA 103.5-06 (03-09-07) 
 Exercise of Surface Rights for Extraction of Water Endorsement 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 The Company agrees that it will not interpose as a defense to a claim of coverage under this Policy the fact that a dissolution of the Insured Limited Liability Company has occurred, or a new Limited
Liability Company has been formed solely by reason of the withdrawal or replacement of one or more of the members of the original Insured Limited Liability Company so long as the Insured remains as the title holder, and no new Limited Liability
Company is explicitly formed. The Company reserves all of its rights and defenses under the Policy which it would have had against the Insured or its constituent members before or after any withdrawal or replacement. 

This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the
policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this
endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 

 

			
		 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

Fairway Endorsement (LLC or Partnership) 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 The Company insures against loss or damage sustained by the Insured by reason of: 
  

	 	(1)	damage to an existing building located on the Land, or 

  

	 	(2)	enforced removal or alteration of an existing building located on the Land, as a result of the exercise of the right of use or maintenance of the easement referred to
in Exceptions 7, 8, 9, 14, 15 and 16 of Schedule B for the purpose for which it was granted or reserved. 

 This endorsement is
issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount
of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of
the policy and of any prior endorsements. 
  

			
		 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

ATLA Endorsement 28-06 (Easement – Damage or Enforced Removal) 
 Adopted 10/16/08 

 This is a Pro Forma Policy furnished to or on behalf of the party proposed to be insured for
discussion only. It does not reflect the present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any coverage shown herein. Any such commitment
must be an express written undertaking issued on appropriate forms of the Company. 
  
 ENDORSEMENT 
 ATTACHED TO POLICY NO. CT1103006-CT2946 

ISSUED BY 

CHICAGO TITLE INSURANCE COMPANY 
 The Company insures against loss or damage sustained by reason of any final judgment enforcing the covenants, conditions and restrictions referred to in paragraphs 7, 8, 9, 10, 11, 12, 18 & 20 of
Schedule B, based upon a violation thereof on the Land prior to Date of Policy. 
 As used in this endorsement, the words
“covenants, conditions or restrictions” do not refer to or include any covenant, condition or restriction (a) relating to obligations of any type to perform maintenance, repair or remediation on the Land, or (b) pertaining to
environmental protection of any kind or nature, including hazardous or toxic matters, conditions or substances except to the extent that a notice of a violation or alleged violation affecting the Land has been recorded in the Public Records at Date
of Policy and is not excepted in Schedule B. 
 This endorsement is issued as part of the policy. Except as it expressly states,
it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a
previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 

 

			
		 	CHICAGO TITLE INSURANCE COMPANY
		
	 By:
	 	  

		 	Authorized Signatory

CLTA Form 100.5-06 (03-09-07) 
 CC&R’s, Violations 
 ALTA - Owner 

			
	
 

	  	

 ENDORSEMENT 

Attached to Policy No. NCS 489447 Owner’s Policy 
 Issued by 
 First American Title Insurance Company 

(“Co-Insurer”) 
 CO-INSURANCE ENDORSEMENT 
 Attached to and made a part of Chicago Title Insurance Company
(“Issuing Co-Insurer”) Policy No. CT1103006-CT2946 (“Co-Insurance Policy”). Issuing Co-Insurer and any other co-insurers are collectively referred to as “Co-Insurers.” 

 

	1.	Co-Insurer issues this endorsement as evidence of Co-Insurer’s liability under Co-Insurance Policy and directs that this endorsement be attached to the
Co-Insurance Policy adopting its Covered Risks, Exclusions, Conditions, Schedules and Endorsements, as follows: 

Amount and proportion of insurance and Aggregate Amount of Insurance under the Co-Insurance Policy: 

 

													
	Co-Insurers	  	Name and Address	  	 Policy
 Number
	  	Amount of
Insurance	 	  	Proportion of
Liability	 
	 Issuing Co-Insurer
	  	 Chicago Title Insurance Company
 171 N. Clark Street Chicago, IL 60601
	  	CT1103006-CT2946	  	$	140,000,000.00	  	  	 	70	% 
	 Co-Insurer
	  	First American Title Insurance Company 30 N. LaSalle Street Chicago, IL 60602	  	NCS 489447	  	$	60,000,000.00	  	  			
	 Aggregate Policy Amount
	  		  		  	$	200,000,000.00	  	  			

  

	2.	Each Co-Insurer shall be liable to the Insured under the Co-Insurance Policy only for the total of the loss and costs multiplied by its Proportion of Liability.

  

	3.	Any notice of claim and any other notice or statement in writing required to be given under the Co-Insurance Policy must be given to Co-Insurer at its address set forth
above. 

  

	4.	Any endorsement to the Co-Insurance Policy issued after the date of this Co-Insurance Endorsement must be signed on behalf of the Co-Insurer by its authorized officer
or agent. 

  

	5.	This Co-Insurance Endorsement is effective as of the Date of Policy of the Co-Insurance Policy. This Co-Insurance Endorsement may be executed in counterparts.

 This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms
and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an
express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 
 June     , 2011 
 American Land Title Association 

Endorsement 23-06 (Co-Insurance - Single Policy) 

Adopted 01/01/08 
  

			
	
 

	  	

			
	
 

	  	

 F.A. Special 
 Lack of Signatures 
 ENDORSEMENT 

Attached to Policy No. NCS-489447 Owner’s Policy 
 Issued By 
 First American Title Insurance Company 

The Company hereby assures the Insured that the Company will not deny liability under the policy or any endorsements issued therewith solely on the
grounds that the policy and/or endorsement(s) were issued electronically and/or lack signatures in accordance with Paragraph 15 (c) of the Conditions. 
 This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements,
(iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls.
Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 
 First
American Title Insurance Company 
  

					
	

	  	

	  	
	 Dennis J. Giimore
	  	 Timothy Kemp
	  	
	 President
	  	 Secretary
	  	

 

 

  

			
	
 

	  	

 Exhibit A-1 
 LEGAL DESCRIPTION OF FEE COMPONENT LAND 
 Parcel No. 2: (Tennis Cottages
Parcel) 
 That port of the Southwest one-quarter of Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base and
Meridian, Maricopa County, Arizona, described as follows: 
 COMMENCING at the South one-quarter corner of said Section 35;

 THENCE North 00 degrees 08 minutes 41 seconds East, along the North-South mid-section line of said Section 35, a distance
of 1486.58 feet; 
 THENCE North 89 degrees 49 minutes 06 seconds West, 840.00 feet to the POINT OF BEGINNING; 

THENCE South 27 degrees 44 minutes 13 seconds East, 177.75 feet; 
 THENCE South 83 degrees 46 minutes 19 seconds East, 39.13 feet; 
 THENCE South 26
degrees 47 minutes 27 seconds East, 26.35 feet; 
 THENCE South 58 degrees 07 minutes 53 seconds East, 43.04 feet; 

THENCE South 88 degrees 18 minutes 25 seconds East, 29.86 feet; 
 THENCE South 07 degrees 07 minutes 02 seconds East, 47.49 feet; 
 THENCE South 66
degrees 38 minutes 00 seconds West, 275.66 feet to the beginning of a curve concave to the Southeast having a radius of 150.00 feet; 
 THENCE Southwesterly along said curve through a central angle of 12 degrees 08 minutes 15 seconds, an arc distance of 31.78 feet; 
 THENCE South 54 degrees 29 minutes 46 seconds West, 446.31 feet; 
 THENCE North 84
degrees 49 minutes 13 seconds West, 43.57 feet; 
 THENCE North 00 degrees 01 minutes 45 seconds East, 619.54 feet; 

THENCE South 89 degrees 49 minutes 06 seconds East, 377.78 feet; 
 THENCE North 00 degrees 01 minutes 45 seconds East, 18.00 feet; 
 THENCE South 89
degrees 49 minutes 06 seconds East, 103.52 feet to the POINT OF BEGINNING. 
 EXCEPT one-half of all oil and mineral rights as reserved in
instrument recorded in Book 124, page 39, records of Maricopa County, Arizona; and also 

 EXCEPT all oil gas, other hydrocarbon substances, helium or other substances of a gaseous nature, coal,
metals, minerals, fossils, fertilizer of every name and description; and also 
 EXCEPT all uranium, thorium or any other material which is or
may be determined to be peculiarly essential to the production of fissionable materials whether or not of commercial value, as set forth in Section 37-231, Arizona Revised Statutes. 
 Parcel No. 3: (Golf Cottage Parcel) 
 That portion of the South one-half of
Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, described as follows: 
 COMMENCING at the South one-quarter corner of said Section 35; 
 THENCE North
00 degrees 08 minutes 41 seconds East, along the North-South mid-section line of said Section 35, a distance of 692.16 feet to the POINT OF BEGINNING; 
 THENCE North 79 degrees 44 minutes 48 seconds West, 66.78 feet; THENCE North 05 degrees 04 minutes 10 seconds West, 504.79 feet; THENCE South 89 degrees 51 minutes 19 seconds East, 233.91 feet; THENCE
South 00 degrees 08 minutes 41 seconds West, 10.06 feet; THENCE South 89 degrees 51 minutes 19 seconds East, 67.83 feet; 

THENCE North 00 degrees 08 minutes 41 seconds East, 14.66 feet; THENCE South 89 degrees 51 minutes 19 seconds East, 148.26 feet; THENCE
South 00 degrees 08 minutes 41 seconds West, 16.60 feet; THENCE South 89 degrees 51 minutes 19 seconds East, 102.00 feet; THENCE South 00 degrees 08 minutes 41 seconds West, 253.85 feet; THENCE North 79 degrees 44 minutes 48 seconds West, 295.00
feet; 
 THENCE South 10 degrees 15 minutes 12 seconds West, 92.82 feet to the beginning of a non-tangent curve concave to the
Southeast, having a radius of 45.00 feet, and a radial bearing to said beginning of North 39 degrees 43 minutes 18 seconds East; 

THENCE Southwesterly along said curve through a central angle of 134 degrees 47 minutes 28 seconds, an arc distance of 105.86 feet;

 THENCE South 84 degrees 55 minutes 50 seconds West, 60.44 feet to a point on the North-South mid-section line of said
Section 35; 
 THENCE South 00 degrees 08 minutes 41 seconds West, along said mid-section line, 164.69 feet to the POINT OF
BEGINNING. 
 EXCEPT one-half of all oil and mineral rights as reserved in instrument recorded in Book 124, page 39, records of
Maricopa County, Arizona; and also 
 EXCEPT all oil gas, other hydrocarbon substances, helium or other substances of a gaseous
nature, coal, metals, minerals, fossils, fertilizer of every name and description; and also 
 EXCEPT all uranium, thorium or any
other material which is or may be determined to be peculiarly essential to the production of fissionable materials whether or not of commercial value, as set forth in Section 37-231, Arizona Revised Statutes. 

 Parcel No. 4: 
 That portion of the Southeast quarter of Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, described as follows: 

COMMENCING at the Southeast corner of said Section 35; 
 THENCE North 00 degrees 08 minutes 48 seconds East, along the East line of said Southeast quarter, 2145.40 feet; 
 THENCE North 89 degrees 51 minutes 09 seconds West, 1858.64 feet to the POINT OF BEGINNING; 
 THENCE continuing North 89 degrees 51 minutes 09 seconds West, 782.42 feet to the West line of said Southeast quarter; 
 THENCE South 00 degrees 08 minutes 41 seconds West, along said West line 60.00 feet (57.42 feet, measured); 
 THENCE South 74 degrees 58 minutes 57 seconds East, 337.32 feet to the beginning of a curve concave Southwesterly, having a radius of 300.00 feet; 

THENCE Southeasterly along said curve through a central angle of 35 degrees 25 minutes 14 seconds, an arc distance of 185.46 feet;

 THENCE South 39 degrees 33 minutes 43 seconds East, 125.23 feet to the beginning of a curve concave Northeasterly, having a
radius of 1000.00 feet; 
 THENCE Southeasterly, along said curve, through a central angle of 06 degrees 22 minutes 13 seconds,
an arc distance of 111.18 feet; 
 THENCE North 44 degrees 04 minutes 04 seconds East, 211.86 feet; 

THENCE North 00 degrees 08 minutes 43 seconds East, 270.00 (267.42 feet, measured) feet to the POINT OF BEGINNING; 

EXCEPT one-half of all oil and mineral rights as reserved in instrument recorded in Docket 124, page 39, records of Maricopa County,
Arizona. 
 Parcel No. 5: 

That portion of the Northeast quarter of the Southwest quarter of Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base and
Meridian, Maricopa County, Arizona, described as follows: 
 COMMENCING at the center of said Section 35; 

THENCE South 00 degrees 08 minutes 41 seconds West, along the North-South mid-section line of said Section 35, a distance of 232.27
feet to the POINT OF BEGINNING; 
 THENCE continuing South 00 degrees 08 minutes 41 seconds West, along said mid-section line,
431.30 feet; 

 THENCE North 74 degrees 58 minutes 57 seconds West, 6.41 feet to the beginning of a curve
concave to the Northeast, having a radius of 444.50 feet; 
 THENCE Northwesterly along said curve through a central angle of 75
degrees 09 minutes 12 seconds, an arc distance of 583.04 feet; 
 THENCE South 89 degrees 49 minutes 46 seconds East, 336.61 feet
to the POINT OF BEGINNING; 
 EXCEPT one-half of all oil and mineral rights as reserved in instrument recorded in Docket 124,
page 39, records of Maricopa County, Arizona. 
 Parcel No. 6: 
 That portion of the Northeast quarter of the Southwest quarter of Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, described as
follows: 
 BEGINNING at the center Section 35; 
 THENCE South 00 degrees 08 minutes 41 seconds West, along the North-South mid-section line of said Section 35, a distance of 232.27 feet; 

THENCE North 89 degrees 49 minutes 46 seconds West, 392.11 feet; 
 THENCE North 00 degrees 10 minutes 14 seconds East, 232.27 feet to the East-West mid-section line of said Section 35; 
 THENCE South 89 degrees 49 minutes 46 seconds East, along said East-West mid-section line, 392.00 feet to the POINT OF BEGINNING; 
 EXCEPT one-half of all oil and mineral rights as reserved in instrument recorded in Docket 124, page 39, records of Maricopa County, Arizona. 
 Parcel No. 7: 
 Intentionally Omitted. 

Parcel No. 8: 
 A nonexclusive
easement for ingress and egress by or pursuant to that certain “Easement and Maintenance Agreement” dated November 21, 1986 and recorded December 2, 1986 in Document No. 86-664157, records of Maricopa County, Arizona.

 Parcel No. 9: 
 A
nonexclusive easement for ingress and egress by or pursuant to that certain “Reciprocal Easement and Maintenance Agreement” dated November 21, 1986 and recorded December 2, 1986 in Document No. 86-664160, records of Maricopa
County, Arizona. 
 Parcel No. 10: 

 A nonexclusive easement for ingress and egress and utilities by or pursuant to that certain “Reciprocal
Easement Agreement, Construction and Maintenance Agreement, and Covenants, Conditions and Restrictions” dated April 19, 2006, and recorded April 19, 2006, in Document No. 20060523599, records of Maricopa County, Arizona. 

Parcel No. 11: 
 A nonexclusive
easement for ingress and egress, utilities and other purposes by or pursuant to that certain “Declaration of Easements and Covenants, Conditions and Restrictions” dated October 28, 1986, and recorded December 12, 1986, in
Document No. 86-688089, records of Maricopa County, Arizona. 
 Parcel No. 12: 

A nonexclusive easement for ingress and egress by or pursuant to that certain “Master Declaration of Covenants, Conditions and Restrictions for
Scottsdale Princess/Eagle” dated August 19, 1986, and recorded August 20, 1986, in Document No. 86-444862, records of Maricopa County, Arizona. 
 Parcel No. 13: 
 An easement for roadway over that portion of Tracts 3A, 11 and 12,
State Plat No. 16 - Core South, according to Book 324 of Maps, page 50, Records of Maricopa County, Arizona, lying within the Northwest quarter of Section 35, Township 4 North, Range 4 East, Gila and Salt River Base and Meridian, depicted
thereon as Princess Boulevard. 

 Exhibit A-2 
 LEGAL DESCRIPTION OF LAND SUBJECT TO GROUND LEASE 
 Parcel No. 1: (Hotel
Parcel) 
 That portion of the South half of Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base and Meridian,
Maricopa County, Arizona, described as follows: 
 COMMENCING at the South one-quarter corner of said Section 35;

 THENCE North 00 degrees 08 minutes 41 seconds East, along the North-South mid-section line of said Section 35, a distance
of 1206.58 feet to the POINT OF BEGINNING; 
 THENCE North 89 degrees 51 minutes 19 seconds West, 111.62 feet; 

THENCE North 05 degrees 04 minutes 10 seconds West, 34.51 feet to the beginning of a curve concave to the East having a radius of 75.00
feet; 
 THENCE Northerly along said curve through a central angle of 60 degrees 29 minutes 58 seconds, an arc distance of 79.19
feet to a point of reverse curvature with a curve concave to the Southwest and having a radius of 75.00 feet; 
 THENCE
Northeasterly, Northerly, and Southwesterly along said curve through a central angle of 168 degrees 47 minutes 48 seconds, an arc distance of 220.95 feet; 
 THENCE South 66 degrees 38 minutes 00 seconds West, 521.45 feet; THENCE North 07 degrees 07 minutes 02 seconds West, 47.49 feet; 
 THENCE North 88 degrees 18 minutes 25 seconds West, 29.86 feet; THENCE North 58 degrees 07 minutes 53 seconds West, 43.04 feet; 
 THENCE North 26 degrees 47 minutes 27 seconds West, 26.35 feet; 
 THENCE North 83
degrees 46 minutes 19 seconds West, 39.13 feet; THENCE North 27 degrees 44 minutes 13 seconds West, 177.75 feet; 
 THENCE North
89 degrees 49 minutes 06 seconds West, 103.52 feet; 
 THENCE South 00 degrees 01 minutes 45 seconds West, 18.00 feet;

 THENCE North 89 degrees 49 minutes 06 seconds West, 377.78 feet; 

THENCE North 00 degrees 01 minutes 45 seconds East, 756.50 feet 
 THENCE North 78 degrees 51 minutes 20 seconds East, 4.33 feet to the beginning of a curve concave to the South having a radius of 250.00 feet; 

THENCE Easterly along said curve through a central angle of 51 degrees 43 minutes 26 seconds, an arc distance of 225.69 feet; 

 THENCE South 49 degrees 25 minutes 14 seconds East, 59.77 feet; 

THENCE North 40 degrees 34 minutes 36 seconds East, 352.13 feet to the beginning of a curve concave to the Southeast having a radius of
100.00 feet; 
 THENCE Northeasterly along said curve through a central angle of 49 degrees 35 minutes 38 seconds, an arc
distance of 86.56 feet; 
 THENCE South 89 degrees 49 minutes 46 seconds East, 385.35 feet to the beginning of a non-tangent
curve concave to the East having a radius of 500.00 feet, and a radial bearing to said beginning of South 73 degrees 52 minutes 17 seconds West; 
 THENCE Northerly along said curve through a central angle of 16 degrees 17 minutes 57 seconds, an arc distance of 142.24 feet; 
 THENCE South 89 degrees 49 minutes 46 seconds East, 55.5 feet to the beginning of a non-tangent curve concave to the Northeast having a radius of 444.50 feet and a radial bearing to said beginning of
North 89 degrees 46 minutes 46 seconds West; 
 THENCE Southeasterly along said curve through a central angle of 75 degrees 09
minutes 12 seconds, an arc distance of 583.04 feet; 
 THENCE South 74 degrees 58 minutes 57 seconds East, 6.41 feet to the
North-South mid-section of said Section 35; 
 THENCE South 00 degrees 08 minutes 41 seconds West, along said mid-section
line, 57.42 feet; 
 THENCE South 74 degrees 58 minutes 57 seconds East, 337.32 feet to the beginning of a curve concave to the
Southwest having a radius of 300.00 feet; 
 THENCE Southeasterly along said curve through a central angle of 35 degrees 25
minutes 14 seconds, an arc distance of 185.46 feet; 
 THENCE South 39 degrees 33 minutes 43 seconds East, 125.23 feet to the
beginning of a curve concave to the Northeast having a radius of 1000.00 feet; 
 THENCE Southeasterly along said curve through a
central angle of 11 degrees 27 minutes 33 seconds, an arc distance of 200.00 feet; 
 THENCE South 38 degrees 58 minutes 44
seconds West, 55.50 feet; 
 THENCE South 16 degrees 17 minutes 23 seconds West, 211.79 feet. 

THENCE North 89 degrees 51 minutes 19 seconds West, 270.00 feet; 
 THENCE South 00 degrees 08 minutes 41 seconds West, 208.40 feet; 
 THENCE North 89
degrees 51 minutes 19 seconds West, 148.26 feet; 
 THENCE South 00 degrees 08 minutes 41 seconds West, 14.66 feet; 

 THENCE North 89 degrees 51 minutes 19 seconds West, 67.83 feet; 

THENCE North 00 degrees 08 minutes 41 seconds East, 10.06 feet; 
 THENCE North 89 degrees 51 minutes 19 seconds West, 122.29 feet to the POINT OF BEGINNING; 
 EXCEPT one-half of all oil and mineral rights as reserved in instrument recorded in Book 124, page 39, records of Maricopa County, Arizona; and also 

EXCEPT all oil gas, other hydrocarbon substances, helium or other substances of a gaseous nature, coal, metals, minerals, fossils,
fertilizer of every name and description; and also 
 EXCEPT all uranium, thorium or any other material which is or may be
determined to be peculiarly essential to the production of fissionable materials whether or not of commercial value, as set forth in Section 37-231, Arizona Revised Statutes. 

 Exhibit A-3 
 LEGAL DESCRIPTION OF VACANT LAND 
 Parcel No. 7: 

That portion of the Northeast one-quarter of the Southwest one-quarter of Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base
and Meridian, Maricopa County, Arizona, described as follows: 
 COMMENCING at the center of said Section 35; 

THENCE North 89 degrees 49 minutes 46 seconds West along the East-West mid-section line of said Section 35, a distance of 392.00 feet
to the TRUE POINT OF BEGINNING; 
 THENCE South 00 degrees 10 minutes 14 seconds West, 232.27 to the beginning of a curve concave
to the East having a radius of 500.00 feet; 
 THENCE Southerly along said curve through a central angle of 16 degrees 17 minutes
57 seconds an arc distance of 142.24 feet; 
 THENCE North 89 degrees 49 minutes 46 seconds West, 385.35 feet to the beginning of
a curve concave to the Southeast having a radius of 100.00 feet; 
 THENCE Southwesterly along said curve through a central angle
of 49 degrees 35 minutes 38 seconds, an arc distance of 86.56 feet to the point of tangency; 
 THENCE South 40 degrees 34
minutes 36 seconds West, 352.13 feet; 
 THENCE North 49 degrees 25 minutes 14 seconds West, 59.77 feet to the beginning of a
curve concave to the Southwest having a radius of 250.00 feet; 
 THENCE Northwesterly along said curve through a central angle
of 51 degrees 43 minutes 26 seconds, an arc distance of 225.69 feet to the point of tangency; 
 THENCE South 78 degrees 51
minutes 20 seconds West, 4.33 feet to the West line of said Northeast one-quarter; 
 THENCE North 00 degrees 01 minutes 45
seconds East, 507.05 feet along said West line to the beginning of a non-tangent curve concave to the Southeast having a radius of 805.00 feet and a radial bearing to said beginning being South 24 degrees 57 minutes 36 seconds East; 

THENCE Northeasterly along said curve through a central angle of 25 degrees 07 minutes 50 seconds, an arc distance of 353.08 feet to the
point of tangency said point lying on the North line of said Northeast one-quarter; 
 THENCE South 89 degrees 49 minutes 46
seconds East, 589.90 feet along the North line of said Northeast one-quarter to the POINT OF BEGINNING; 
 EXCEPT one-half of all
oil and mineral rights as reserved in instrument recorded in Docket 124, page 39, records of Maricopa County, Arizona. 

 Exhibit B 
 EXCLUDED PERSONAL PROPERTY 
 Any personal property owned by
(i) any tenants under the Leases, (ii) any lessor of such property under any Operating Agreement, (iii) any guest of the Hotel, (iv) any third party possessing the right to situate personal property at the Hotel pursuant to a
Permitted Exception, (v) any service provider under an Operating Agreement using such equipment in connection with the performance of such service, (vi) Operator, or (vi) any agent, employee or invitee of any of the foregoing.

 Exhibit C-1 
 LEASE SCHEDULE 
  

					
	 Company Name
	  	 Expiration Date
	  	 Description

			
	 Verizon Wireless
	  	 September 30, 2014
	  	 Rooftop Rental - Cell Site

			
	 Verizon Wireless
	  	 March 31, 2012
	  	 Rooftop Rental - Cell Site

			
	 Go Rentals
	  	 June 30, 2011
	  	 Auto Rental

			
	 American Audio Visual
	  	 November 30, 2011
	  	 Audio Visual Services

			
	 Transtyle
	  	 Month to Month
	  	 Limousine Service

			
	 Lodgenet
	  	 January 2012
	  	 Television / In-room Movies

			
	 Innovative Transportation/ Driver Provider
	  	 January 31, 2013
	  	 Group Transportation Service

 Exhibit C-2 
 OPERATING AGREEMENT SCHEDULE 
 Bar Management Agreement dated February 1, 2008

 Restaurant Management Agreement dated February 11, 2008 
 Golf Facility Reservations and Use and Licensing Agreement dated December 20, 1985 
 R and R
Retail, LLC 
 American Audio Visual Center, Inc. 
 S. Sherman & Associates, Inc. (food purchasing – 60 day cancellation notice) 
  

 
  

					
	Company Name	  	Expiration Date	  	Description
			
	 Rubicon
	  	 December 31, 2011
	  	 MarketVision Subscription

			
	 Cision US Inc
	  	 December, 2011
	  	 Media Monitoring

			
	 StarCite
	  	 December, 2011
	  	 Marketing Package Facility

			
	 Cvent
	  	 December, 2011
	  	 Marketing Package Mtg Site

			
	 Scottel Voice and Date
	  	 August 30, 2011
	  	 Service on Telephone Equipment

			
	 TIG Global
	  	 January , 2012
	  	 Independent website maint/SEO

			
	 GoConcierge.net
	  	 Upon Termination
	  	 License Agreement-concierge network

			
	 R & G Vent Cleaning
	  	 N/A
	  	 Kitchen Exhaust Hood Cleaning

			
	 Johnson Controls
	  	 February 28, 2011
	  	 Chiller Maintenance

			
	 Siemens Building Technology
	  	 May 14, 2011
	  	 Building Energy Mgmt. System

			
	 Inncom International
	  	 N/A
	  	 Guest Room Energy Mgmt. System.

			
	 Kone Elevators
	  	 July 31, 2011
	  	 Elevator Maintenance

			
	 Chem-Aqua
	  	 March 31, 2012
	  	 Water Treatment

			
	 Simplex Grinnell
	  	 December 31, 2011
	  	 Fire alarm system maintenance

			
	 Titan Power
	  	 August 31, 2011
	  	 UPS & Telephone switch

					
			
		  		  	 rectifer

			
	 Empire Power Systems
	  	 October 31, 2011
	  	 Emergency Generator Maintenance

			
	 Valley Crest Landscape Maintenance
	  	 Month to Month
	  	 Landscape Maintenance

			
	 Jani-King of Phoenix
	  	 February 7, 2012
	  	 Night / Window cleaners

			
	 Waste Management Inc
	  	 N/A
	  	 Waste Removal

			
	 Waste Management Inc
	  	 N/A
	  	 Waste Removal

			
	 Western Exterminator
	  	 May 15, 2012
	  	 Pest Control / Exterminating

			
	 Assa Abloy
	  	 December 31, 2011
	  	 Ving Card Maintenance

			
	 Avery Dennison/Monarch Nationwide
	  	 February 25, 2012
	  	 Printer Maintenance

			
	 Truly Nolen Pest Control
	  	 March 1, 2012
	  	 Termite Coverage

			
	 MTECH - Hotsos
	  	 March 31, 2012
	  	 MTEC HOTSOS - maint

			
	 Micros Systems, Inc
	  	 June 26, 2011
	  	 Micros 9700 maint

			
	 Springer-Miller Systems, Inc
	  	 December 31, 2011
	  	 spa POS maint

			
	 ADP, Inc
	  	 December 31, 2011
	  	 time & attendance maint

			
	 Meeting Matrix International, Inc
	  	 August 31, 2011
	  	 Meeting Matrix

			
	 Dataworks, Inc
	  	 August 31, 2011
	  	 retail inventory system maint

			
	 Resource Software International
	  	 April 22, 2011
	  	 Call Acctg System Maint

			
	 Trackit, LCC
	  	 June 30, 2011
	  	 TrackIT

			
	 Sage Accpac International
	  	 November 30, 2011
	  	 Accpac

			
	 Southern Datacom
	  	 August 31, 2011
	  	 Protobase

			
	 Open Table
	  	 December 31, 2011
	  	 Open Table - The grill at TPC

			
	 Open Table
	  	 December 31, 2011
	  	 Open Table - La Hacienda

			
	 Open Table
	  	 May 20, 2011
	  	 Open Table - Bourbon Steak

			
	 Micros Systems Inc
	  	 April 30, 2011
	  	 Opera

 Exhibit C-3 
 EQUIPMENT LEASE SCHEDULE 
 Postage Meter - Pitney Bowes Global Financial Services, LLC

 Exhibit D-1 

SPECIAL WARRANTY DEED1 
 KNOW ALL MEN BY THESE PRESENTS: 
 That [SHR SCOTTSDALE, L.L.C.
/ SHR SCOTTSDALE Z, L.L.C.], a Delaware limited liability company, hereinafter called the “Grantor”, in consideration of the sum of Ten Dollars ($10.00) and other valuable consideration paid to the Grantor by FMT
SCOTTSDALE OWNER, LLC, a Delaware limited liability company, whose address is 900 N. Michigan Ave., Suite 1900, Chicago, Illinois 60611, hereinafter called the “Grantee”, the receipt of which is hereby acknowledged, does hereby
grant, bargain, sell and convey unto the Grantee and its successors and assigns: 
 ALL of those
certain parcels of land situate at 7575 East Princess Drive, Scottsdale, AZ (herein the “Land”), described in Exhibit “A” attached hereto and made a part hereof, subject to the encumbrances mentioned in said
Exhibit “A”; 
 AND the reversions, remainders, rents, issues and profits thereof, together
with all buildings, improvements, tenements, rights, easements, privileges and appurtenances to the same belonging or appertaining or held and enjoyed therewith, and all of the estate, right, title and interest of the Grantor both at law and in
equity therein and thereto (collectively, the “Property”); 
 TO HAVE AND TO HOLD the same unto
the Grantee and its successors and assigns, forever, subject to the encumbrances mentioned in said Exhibit “A”; 
 AND the Grantor, for itself and its successors, hereby covenants with the Grantee and its successors and assigns: THAT the Grantor has good right to grant and convey the Property unto the Grantee as
aforesaid; that the same are free and clear of and from all encumbrances made or suffered by the Grantor, except, however, for the encumbrances mentioned in said Exhibit A; 

AND Grantor hereby specially warrants the title to the Property and will defend the same against the lawful claims
(excluding those arising out of the encumbrances described above) of all persons claiming by, through and under Grantor, but none others, excluding, however, all Permitted Exceptions as described in that certain purchase and sale agreement among the
grantor and grantee, and other parties. 
 IN WITNESS WHEREOF, the Grantor has executed this instrument this
         day of
                                        ,
2011. 
  

			
	  
	 	 ,        

			
	 a
	 	  

 

	1 	 When document is broken out it must be in recordable form and a separate deed must be prepared for the contiguous land.

 
			
	 By
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 Grantor

					
	 STATE OF
	  	 )
	  	
		  	 )
	  	 SS:

	 COUNTY OF
	  	 )
	  	

 On this          day of
                    , 2011, before me appeared
                                        
and
                                        ,
to me personally known, who, being by me duly sworn, did say that they are
                                        
and
                                        ,
respectively, of
                                        ,
a
                                        ;
that such instrument was signed on behalf of such corporation by authority of its
                                        ;
and said
                                        
and
                                        
acknowledged such instrument to be the free act and deed of such. 
  

			
	Signature:	 	  

	Name:	 	  

	Notary Public
		
	State of	 	

			
		
	My commission expires:	 	  

 Exhibit “A” to Deed 

Property 

 Exhibit D-2 

ASSIGNMENT AND ASSUMPTION OF GROUND LEASE2 
 THIS ASSIGNMENT AND ASSUMPTION OF GROUND LEASE (this “Assignment”) is made and entered into as of this          day of
                    , 2011 (“Effective Date”), by and between SHR Scottsdale, L.L.C., a Delaware limited liability company
(“Assignor”), and FMT SCOTTSDALE Owner, LLC, a Delaware limited liability company (“Assignee”). 
 RECITALS 
 (A) The City of Scottsdale, a municipal corporation
(the “City”), as “Lessor,” and Assignor, as “Lessee,” entered into that certain Ground Lease dated December 30, 1985 (a memorandum of which, titled Memorandum of Ground Lease and Right of First Refusal to
Purchase, was recorded December 2, 1986 in the Official Records of Maricopa County as document number 86 664161), as amended by that certain First Amendment to Ground Lease dated November 17, 1986, that certain Second Amendment to Ground
Lease dated April 4, 1995, and that certain Wall and Sign Agreement and Third Amendment to Ground Lease dated December 23, 2002 (as amended, the “Ground Lease”). 

(B) Pursuant to the Ground Lease, Assignor leases certain real property located in the City of Scottsdale, Sate of
Arizona (the “Ground Leased Property”), which Property is more particularly described in Exhibit A attached hereto. 
 (C) The Ground Leased Property is adjacent to certain real property owned in fee by Assignor (the “Fee Property” and together with the Ground Leased Property, the
“Property”). 
 (D) The Property is improved by a hotel facility commonly known as “The
Fairmont Scottsdale Princess” (the “Hotel”). 
 (E) Assignor and Assignee are parties to
that certain Purchase and Sale Agreement dated                     , 2011 (the “Purchase Agreement”), whereby Assignee has
agreed to purchase the Hotel from Assignor. As a condition of the sale, Assignor is required to assign its right, title, and interest in and to the Ground Lease to Assignee. 

(F) Assignor now desires to assign its right, title, claim and interest in, to, and under the Ground Lease to Assignee
and Assignee desires to accept the assignment thereof, subject to the terms and conditions of this Assignment. 
 AGREEMENT

  
  

	2 	 When document is broken out it must be in recordable form. 

 NOW, THEREFOR, FOR GOOD AND VALUABLE CONSIDERATION, the receipt of which is hereby
acknowledged, effective as of the Effective Date (as defined below), the parties hereby agree as follows: 
 1.
Assignor has obtained consent from the City pursuant to the terms of the Ground Lease to the assignment of the Ground Lease to the Assignee. 
 2. Assignor hereby assigns, transfers and conveys unto Assignee all of Assignor’s right, title, claim and interest in, to, and under the Ground Lease, including, without limitation, all of
Assignor’s right, title claim and interest in, to and under all Improvements, as the term is defined in the Ground Lease. 
 3. Assignee hereby accepts the aforesaid assignment and assumes and covenants and agrees, for the benefit of Assignor and the City, faithfully to keep and perform each and all of the terms, covenants,
agreements and conditions of the Ground Lease to be performed by the lessee thereunder, including the making of all payments due to the City when due and payable. 

4. Assignee shall indemnify, defend, protect and hold Assignor harmless from and against any and all liabilities and
obligations of lessee under the Ground Lease first arising after the Effective Date. 
 5. In the event of any
litigation between Assignor and Assignee arising out of this Assignment, the losing party shall pay the prevailing party’s costs and expenses of such litigation, including, without limitation, reasonable attorneys’ fees. 

6. This Assignment shall be binding on and inure to the benefit of the parties hereto, their heirs, executors,
administrators, successors in interest and assigns. 
 7. This Assignment shall be governed by and construed in
accordance with the laws of the State of Arizona. 
 8. This Assignment is delivered pursuant to the Purchase
Agreement. 
 9. Assignee acknowledges that, except as provided herein and in the Purchase Agreement, the
conveyance of the Ground Lease herein is specifically made “as-is” and “where-is,” without any representations or warranties express or implied, including, without limitation, implied warranties of fitness for any particular
purpose or merchantability or any other warranties whatsoever. Assignee has not relied and will not rely on, and Assignor is not liable for or bound by, any express or implied warranties, guaranties, statements, representations or information
pertaining to the Ground Lease or relating thereto (including specifically, without limitation, information packages distributed with respect to the Property) made or furnished by Assignor, the Property manager, or any agent or real estate broker
representing or purporting to represent Assignor, to whomever made or given, directly or indirectly, orally or in writing. 
 10. This Assignment may be executed in any number of counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument.

 [no further text on this page; signatures appear on the following page] 

 IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment as of the day and year first written
above. 
  

			
	ASSIGNOR:
	
	SHR Scottsdale, L.L.C.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 

					
	 STATE OF
	  	 )
	  	
		  	 )
	  	 SS:

	 COUNTY OF
	  	 )
	  	

 On this          day of
                    , 2011, before me appeared
                                        
and                                     , to me personally
known, who, being by me duly sworn, did say that they are
                                        
and
                                        ,
respectively, of
                                        ,
a
                                        ;
that such instrument was signed on behalf of such corporation by authority of its Board of Directors; and said
                                        
and
                                        
acknowledged such instrument to be the free act and deed of such corporation. 
  

			
	Signature:	 	  

	Name:	 	  

	Notary Public
	
	State of

			
		
	My commission expires:	 	  

 
			
	ASSIGNEE:
	
	FMT SCOTTSDALE Owner, LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 

					
	 STATE OF
	  	 )
	  	
		  	 )
	  	 SS:

	 COUNTY OF
	  	 )
	  	

 On this          day of
                    , 2011, before me appeared
                                        
 and
                                        ,
to me personally known, who, being by me duly sworn, did say that they are
                                        
and
                                        ,
respectively, of
                                        ,
a
                                        ;
that such instrument was signed on behalf of such corporation by authority of its Board of Directors; and said
                                        
and
                                        
acknowledged such instrument to be the free act and deed of such corporation. 
  

			
	Signature:	 	  

	Name:	 	  

	Notary Public
	
	State of

			
		
	My commission expires:	 	  

 Exhibit E 
 BILL OF SALE 
 SHR Scottsdale, L.L.C., a Delaware limited
liability company, SHR Scottsdale Z, LLC, a Delaware limited liability company, and DTRS Scottsdale, L.L.C., a Delaware limited liability company, as seller, and FMT Scottsdale Owner, LLC, a Delaware limited liability company (“New
Hotel Owner”) and Walton/SHR FPH, LLC, a Delaware limited liability (“New Operating Tenant”), as purchaser, have entered into that certain Purchase and Sale Agreement dated as of
                    , 2011 (the “Purchase Agreement”). 

For good and valuable consideration, the receipt of which is hereby acknowledged, SHR Scottsdale, L.L.C., a Delaware
limited liability company, and DTRS Scottsdale, L.L.C., a Delaware limited liability company (collectively, “Seller”), does, as of this          day of
                    , 2011, hereby sell, transfer and convey to New Hotel Owner (“Purchaser”), without recourse or warranty,
any and all personal property, (the “Personal Property”); all inventory (the “Inventory”); all plans and specifications (“Plans and Specifications”); and Balance Sheet Assets (“Balance Sheet
Assets”), as each is defined in the Purchase Agreement owned by Seller and used exclusively in connection with the operation of that certain real property commonly known as The Fairmont Scottsdale Princess and located at 7575 East Princess
Drive, Scottsdale, AZ, and more particularly described in Exhibit A attached hereto and incorporated herein by reference (the “Property”). 

Purchaser acknowledges that the sale of the Personal Property is specifically made “as-is” and
“where-is,” without any representations or warranties express or implied, including, without limitation, implied warranties of fitness for any particular purpose or merchantability or any other warranties whatsoever. Purchaser has not
relied and will not rely on, and Seller is not liable for or bound by, any express or implied warranties, guaranties, statements, representations or information pertaining to the Personal Property or relating thereto (including specifically, without
limitation, information packages distributed with respect to the Property) made or furnished by Seller, the Property manager, or any agent or real estate broker representing or purporting to represent Seller, to whomever made or given, directly or
indirectly, orally or in writing. Notwithstanding the foregoing, Purchaser does not hereby waive its rights to rely on and otherwise with respect to representations and warranties expressly set forth in the Purchase Agreement. 

This Bill of Sale may be executed in any number of counterparts, each of which shall be deemed an original and all of
which, when taken together, shall constitute one and the same instrument. 
 [Next page is signature page] 

 IN WITNESS WHEREOF, Seller and Purchaser have executed this Bill of Sale as
of the date first above written. 
  

			
	SELLER:
	
	SHR Scottsdale, L.L.C., a Delaware limited liability company
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	DTRS Scottsdale, L.L.C., a Delaware limited liability company
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	PURCHASER:
	
	FMT Scottsdale Owner, LLC, a Delaware limited liability
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 EXHIBIT A TO BILL OF SALE 

LEGAL DESCRIPTIONS 
 (see attached) 

 Exhibit F 
 ASSIGNMENT AND ASSUMPTION OF LEASES 
 THIS ASSIGNMENT AND
ASSUMPTION OF LEASES (this “Assignment”) dated as of                     , 2011 (“Effective Date”) is
entered into by and among SHR Scottsdale, L.L.C., a Delaware limited liability company, and DTRS Scottsdale, L.L.C., a Delaware limited liability company (individually and collectively, as the context requires, “Assignor”), and
Walton/SHR FPH, LLC, a Delaware limited liability (“Assignee”). 
 W I T N E S S E T H 

WHEREAS, Assignor is the lessor under those certain lease agreements identified on Exhibit B attached hereto (the
“Leases”) executed with respect to that certain real property commonly known as The Fairmont Scottsdale Princess and located at 7575 East Princess Drive, Scottsdale, AZ (the “Property”) as more fully described in
Exhibit A attached hereto and incorporated herein by reference; 
 WHEREAS, Assignor and SHR Scottsdale Z
LLC, a Delaware limited liability company, as seller, and FMT Scottsdale Owner, LLC, a Delaware limited liability company (“New Hotel Owner”), and Walton/SHR FPH, LLC, a Delaware limited liability (“New Operating
Tenant”), as purchaser, have entered into that certain Purchase and Sale Agreement dated as of                     , 2011 (the
“Purchase Agreement”) conveying the Property; and 
 WHEREAS, Assignor desires to assign its
interest as lessor in the Leases to Assignee, and Assignee desires to accept the assignment thereof; 
 Now,
THEREFORE, in consideration of the promises and conditions contained herein, the parties hereby agree as follows: 
 1. Effective as of the Effective Date (as defined below), Assignor hereby assigns to Assignee all of its right, title and interest in and to the Leases. 

2. Effective as of the Effective Date, Assignee hereby assumes all of Assignor’s obligations under the Leases and
agrees to indemnify Assignor against and hold Assignor harmless from any and all cost, liability, loss, damage or expense, including without limitation, attorneys’ fees, accruing or arising out of the lessor’s obligations under the Leases
first arising after the Effective Date. 
 3. This Assignment shall be binding on and inure to the benefit of
the parties hereto, their heirs, executors, administrators, successors in interest and assigns. 
 4. This
Assignment shall be governed by and construed in accordance with the laws of the State of Arizona. 
 5.
Assignee acknowledges that, except as provided in the Purchase Agreement, the conveyance of the Leases herein is specifically made “as-is” and “where-is,” without any representations or warranties express or implied, including,
without limitation, implied 

 
warranties of fitness for any particular purpose or merchantability or any other warranties whatsoever. Assignee has not relied and will not rely on, and Assignor is not liable for or bound by,
any express or implied warranties, guaranties, statements, representations or information pertaining to the Leases or relating thereto (including specifically, without limitation, information packages distributed with respect to the Property) made
or furnished by Assignor, the Property manager, or any agent or real estate broker representing or purporting to represent Assignor, to whomever made or given, directly or indirectly, orally or in writing. 

6. This Assignment is delivered pursuant to the Purchase Agreement. 

7. This Assignment may be executed in any number of counterparts, each of which shall be deemed an original and all of
which, when taken together, shall constitute one and the same instrument. 
 [Next page is signature page] 

 IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment as
of the day and year first above written. 
  

			
	ASSIGNOR:
	
	SHR Scottsdale, L.L.C., a Delaware limited liability company
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	DTRS Scottsdale, L.L.C., a Delaware limited liability company
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	ASSIGNEE:
	
	Walton/SHR FPH, LLC, a Delaware limited liability
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 EXHIBIT A TO ASSIGNMENT OF LEASES 

LEGAL DESCRIPTION 
 (see attached) 

 EXHIBIT B TO ASSIGNMENT OF LEASES 

Leases 

(See Attached) 

 Exhibit G 
 ASSIGNMENT AND ASSUMPTION - GENERAL 
 THIS ASSIGNMENT AND
ASSUMPTION - GENERAL (this “Assignment”) is made and entered into as of this          day of
                    , 2011 (“Effective Date”), by and among SHR Scottsdale, L.L.C., a Delaware limited liability company, and
DTRS Scottsdale, L.L.C., a Delaware limited liability company (individually and collectively, as the context may require, “Assignor”), and FMT Scottsdale Owner, LLC, a Delaware limited liability company (“New Hotel
Owner”) and Walton/SHR FPH, LLC, a Delaware limited liability (“New Operating Tenant”) (New Hotel Owner and New Operating Tenant are herein collectively referred to as, “Assignee”). 

W I T N E S S E T H: 
 WHEREAS, Assignor and SHR Scottsdale Z LLC, a Delaware limited liability company, as seller, and New Hotel Owner and New Operating Tenant, as purchaser, have entered into that certain Purchase and Sale
Agreement dated as of                     , 2011 (the “Purchase Agreement”) conveying the Property; and 

WHEREAS, pursuant to the Purchase Agreement, Assignor desires to assign certain of its interests to Assignee, and
Assignee desires to accept the assignment thereof; and 
 WHEREAS, capitalized terms used but not otherwise
defined herein shall have the meaning ascribed to such terms in the Purchase Agreement. 
 NOW, THEREFORE, for
good and valuable consideration, the receipt of which is hereby acknowledged, effective as of the Effective Date (as defined below), Assignor hereby assigns and transfers unto Assignee all of its right, title, claim and interest in and under:

 (A) all warranties and guaranties (express or implied) made by or received from any third party with respect
to any building, building component, structure, fixture, machinery, equipment, or material situated on, contained in any building or other improvement situated on, or comprising a part of any building or other improvement situated on, any part of
the Property “Warranties”); 
 (B) all of the Operating Agreements; 

(C) all of the Licenses; 
 (D) all Equipment Leases 
 (E) any Intangibles; 

(F) the Intellectual Property; 
 (G) Books; 

 (H) Reservations; and 

(I) Reservation Deposits. 
 ASSIGNOR AND ASSIGNEE FURTHER HEREBY AGREE AND COVENANT AS FOLLOWS: 
 1. Effective as of the Effective Date, Assignee hereby assumes all of the owner’s obligations under the Operating Agreements, Warranties, Licenses, Equipment Leases, Intangibles, Intellectual
Property, Books, Reservations, and Reservation Deposits, and agrees to indemnify Assignor against and hold Assignor harmless from any and all cost, liability, loss, damage or expense, including, without limitation, attorneys’ fees, accruing or
arising out of the owner’s obligations thereunder first arising after the Effective Date. 
 2. This
Assignment shall be binding on and inure to the benefit of the parties hereto, their heirs, executors, administrators, successors in interest and assigns. 
 3. This Assignment shall be governed by and construed in accordance with the laws of the State of Arizona. 
 4. This Assignment is delivered pursuant to the Purchase Agreement. 
 5. Assignee acknowledges and agrees that, except as provided in the Purchase Agreement, the conveyance of the Operating Agreements, Warranties, Licenses, Equipment Leases, Intangibles, Intellectual
Property, Books, Reservations, and Reservation Deposits is specifically made “as-is” and “where-is,” without any representations or warranties express or implied, including, without limitation, implied warranties of fitness for
any particular purpose or merchantability or any other warranties whatsoever. Assignee has not relied and will not rely on, and Assignor is not liable for or bound by, any express or implied warranties, guaranties, statements, representations or
information pertaining to the Operating Agreements, Warranties, Licenses, Equipment Leases, Intangibles Intellectual Property, Books, Reservations, or Reservation Deposits or relating thereto (including specifically, without limitation, information
packages distributed with respect to the Property) made or furnished by Assignor, or any agent or broker representing or purporting to represent Assignor, to whomever made or given, directly or indirectly, orally or in writing. 

6. This Assignment may be executed in any number of counterparts, each of which shall be deemed an original and all of
which, when taken together, shall constitute one and the same instrument. 
 [Next page is signature page] 

 IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment as
of the day and year first above written. 
  

			
	ASSIGNOR:
	
	SHR Scottsdale, L.L.C., a Delaware limited liability company
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	DTRS Scottsdale, L.L.C., a Delaware limited liability company
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	ASSIGNEE:
	
	FMT Scottsdale Owner, LLC, a Delaware limited liability company
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	Walton/SHR FPH, LLC, a Delaware limited liability
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 Exhibit H 
 [NOTICE TO TENANTS] 

                    , 2011

  

			
	To:	 	  

	  

	  

Re: Notice of Lease Assignment 
 Premises: The Fairmont Princess Scottsdale 
 Ladies and Gentlemen: 

Please be advised that the Premises have been acquired by, and the Lessor’s interest in your lease and your security
deposit (if any) have been assigned, to Walton/SHR FPH, LLC, a Delaware limited liability company (“New Owner”). 
 Notwithstanding the foregoing, Fairmont Hotels & Resorts (U.S.) Inc. remains the manager of the Hotel and, therefore, you shall continue to pay all future rental and other payments under your
lease to Fairmont as agent for the New Owner. 
 [continued on next page] 

 Very truly yours, 

 

			
	Prior Owner:
	
	SHR Scottsdale, L.L.C., a Delaware limited liability company
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	DTRS Scottsdale, L.L.C., a Delaware limited liability company
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 Exhibit I 
 FIRPTA AFFIDAVIT 
 Section 1445 of the Internal
Revenue Code provides that a transferee of an interest in real property located in the United States must withhold tax if the transferor is a foreign person. To inform the transferee that withholding of tax is not required upon the disposition by
[SHR Scottsdale, L.L.C. / SHR Scottsdale Z, L.L.C.], a Delaware limited liability company (“Transferor”), of its interest in real property in the United States, the undersigned hereby certifies the following on behalf of Transferor:

 1. Transferor is not a foreign corporation, foreign partnership, foreign limited
liability company, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations);3 
 2. Transferor’s U.S. employer identification number is
[                    ] and 
 3. Transferor’s address is: 
 c/o Strategic Hotels &
Resorts, Inc. 
 200 West Madison Street 

Suite 1700 
 Chicago, Illinois 60606 
 Transferor understands that this
Certificate may be disclosed to the Internal Revenue Service by transferee and that any false statement contained herein could result in punishment by fine, imprisonment, or both. 

Under penalties of perjury I declare that I have examined this Certificate and to the best of my knowledge and belief it
is true, correct and complete, and I further declare that I have authority to sign this Certificate on behalf of Transferor. 

Dated as of
                        , 2011. 

 

			
		 	TRANSFEROR:
		
		 	 [SHR SCOTTSDALE, L.L.C. / SHR
 SCOTTSDALE Z, L.L.C.]

		
	By:	 	  

	Name:	 	  

	Title:	 	  

 

	3 	 To be updated if transferor is a disregarded entity. 

 Exhibit J 
 When Recorded, Return To: 
 Perkins Coie LLP 

131 South Dearborn Street 
 Suite 1700 
 Chicago, Illinois 60603-5559 

Attention:        Daniel G.M. Marre 

ASSIGNMENT AND ASSUMPTION OF HOTEL AGREEMENTS 

This Assignment and Assumption of Hotel Management Agreement (“Assignment”) is entered into as of
June 9, 2011 (the “Effective Date”), by and among DTRS SCOTTSDALE, L.L.C., a Delaware limited liability company (“Assignor”), WALTON/SHR FPH, LLC, a Delaware limited liability (“Assignee”),
FAIRMONT HOTELS & RESORTS (U.S.) INC., a corporation formed under the laws of Delaware (“Operator”), and SCOTTSDALE PRINCESS PARTNERSHIP, a general partnership formed under the laws of Arizona (the “Employment
Company”; and together with the Operator, the “Operating Parties”). 
 R E C I T A L S 

A. Assignor and Operator are parties to that certain Hotel Management Agreement dated as of September 1, 2006, as
amended by a First Amendment to Hotel Management Agreement made as of                     , 2007 [sic], by a Second Amendment to Hotel
Management Agreement made as of January 1, 2010, and a letter agreement dated as June 9, 2011 (the “HMA”) relating to the real property located in Scottsdale, Arizona commonly known as the “Fairmont Scottsdale
Princess” and legally described on Exhibit A attached hereto (the “Hotel”). 
 B. A
Memorandum of Hotel Management Agreement dated as of September 1, 2006 was recorded in the Official Records of the Maricopa County Recorder on September 9, 2006 as Document No. 20061183792 (the “Memorandum of HMA”).

 C. Pursuant to the HMA, Operator provides certain hotel management services to the Hotel. All capitalized
terms in this Assignment not defined herein shall have the same meanings as set forth in the HMA. 
 D.
Employment Company and Assignor are the current parties in interest to that certain Hotel Employment Agreement dated September 1, 2006 for provision of hotel employment services and related agreements (the “Employment
Agreement”). 

 E. Assignor, Operator, and Gerber Group Scottsdale, LLC
(“Gerber”) are parties to that certain Bar Management Agreement dated February 1, 2008 (the “Bar Agreement”). 
 F. Assignor, Operator The Mina Group LLC (“Mina”) are parties to that certain Restaurant Management Agreement dated February 11, 2008 (the “Restaurant Agreement”).

 G. SHR Scottsdale, L.L.C. (“Seller”), Operator and PGA Tour, Inc. (“PGA”),
Tournament Players Club of Scottsdale, Inc. (“TPC”) are parties to that certain the Golf Facility Reservations and Use and Licensing Agreement dated December 20, 1985 (as amended, “Golf Agreement”; and together
with the HMA, Employment Agreement, Bar Agreement, and Restaurant Agreement, the “Operating Agreements”). 
 H. Pursuant to the terms of a Purchase and Sale Agreement dated as of         , 2011 among Seller, Assignor and Assignee, among others (the “Purchase
Agreement”), an affiliate of Assignor is selling the Hotel to an affiliate of Assignee, and an affiliate of Assignee is purchasing the Hotel from an affiliate of Assignor. 

I. In connection with the sale of the Hotel, Seller and Assignor desire to assign all of their respective right, title
and interest in the Operating Agreements to Assignee, and Assignee desires to accept such assignment and to assume all of Seller’s and Assignor’s respective obligations under the Operating Agreements, all on the terms and conditions set
forth herein. 
 A G R E E M E N T 
 NOW, THEREFORE, in consideration of their mutual promises, the parties agree as follows: 
 1. Each of Seller and Assignor hereby assigns, sells, transfers, sets over and delivers unto Assignee as of the Effective Date, all of Seller’s and Assignor’s respective right, title and
interest in and to the Operating Agreements. Assignee hereby accepts such Assignment, agrees to assume, perform, pay and discharge in full when due all of Assignor’s liabilities and obligations under or pursuant to the Operating Agreements, and
agrees to indemnify Assignor and Seller against and hold Assignor and Seller harmless from any and all cost, liability, loss, damage or expense, including, without limitation, attorneys’ fees, accruing or arising out of the obligations
thereunder first arising after the Effective Date. Operator and Employment Company hereby consent to such assignment by Seller and Assignor. 
 2. This Assignment shall be binding on and inure to the benefit of the parties hereto, their heirs, executors, administrators, successors in interest and assigns. 

3. This Assignment shall be governed by and construed in accordance with the laws of the State of Arizona. 

4. This Assignment is delivered pursuant to the Purchase Agreement. 

 5. Assignee acknowledges and agrees that, except as provided in the Purchase
Agreement, the assignment of the Operating Agreements is specifically made “as-is” and “where-is,” without any representations or warranties express or implied, including, without limitation, implied warranties of fitness for any
particular purpose or merchantability or any other warranties whatsoever. Assignee has not relied and will not rely on, and Assignor is not liable for or bound by, any express or implied warranties, guaranties, statements, representations or
information pertaining to the Operating Agreements made or furnished by Assignor, or any agent or broker representing or purporting to represent Assignor, to whomever made or given, directly or indirectly, orally or in writing. 

6. This Assignment may be executed in any number of counterparts, each of which shall be deemed an original and all of
which, when taken together, shall constitute one and the same instrument. 
 [Next page is signature page]. 

 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the
day and year first above written. 
  

			
	ASSIGNOR:
	
	 DTRS SCOTTSDALE, L.L.C., a Delaware limited
 liability company

		
	By:	 	  

	Name:	 	Robert T. McAllister
	Title:	 	Senior Vice President, Tax
	
	SELLER:
	
	 SHR SCOTTSDALE, L.L.C., a Delaware limited
 liability company

		
	By:	 	  

	Name:	 	Robert T. McAllister
	Title:	 	Senior Vice President, Tax
	
	ASSIGNEE:
	
	 WALTON/SHR FPH, LLC, a Delaware limited
 liability company

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	OPERATOR:
	
	 FAIRMONT HOTELS & RESORTS (U.S.)
 INC., a corporation formed under the laws of
 Delaware

		
	By:	 	  

	Name:	 	  

	Title:	 	  

[signatures continue on the next page] 

 
							
	 EMPLOYMENT COMPANY:

	
	 SCOTTSDALE PRINCESS PARTNERSHIP, an
 Arizona general partnership

		
	 By:
	  	 CP Hotels (Scottsdale 1) Inc.,

		  		 	 a Delaware corporation, general partner

				
		  		 	 By:
	 	  

		  		 	 Name:
	 	  

		  		 	 Title:
	 	  

		
	 By:
	  	 CP Hotels (Scottsdale 2) Inc.,

		  		 	 a Delaware corporation, general partner

				
		  		 	 By:
	 	  

		  		 	 Name:
	 	  

		  		 	 Title:
	 	  

  

 ACKNOWLEDGMENT 

 

					
	 STATE OF ILLINOIS
	  	         )
	 	
		  	         )
	 	 ss.

	 COUNTY OF COOK
	  	         )
	 	

 The foregoing instrument was acknowledged before me this
         day of                     , 2011, by Robert T. McAllister, as Senior Vice President,
Tax of DTRS SCOTTSDALE, L.L.C., a Delaware limited liability company, on behalf of the limited liability company. 
  

	
	  

	Notary Public

  

	
	My Commission Expires:
	
	  

 

					
	 STATE OF ILLINOIS
	  	         )
	 	
		  	         )
	 	 ss.

	 COUNTY OF COOK
	  	         )
	 	

 The foregoing instrument was acknowledged before me this
         day of                     , 2011, by Robert T. McAllister, as Senior Vice President,
Tax of SHR SCOTTSDALE, L.L.C., a Delaware limited liability company, on behalf of the limited liability company. 
  

	
	  

	Notary Public

  

	
	My Commission Expires:
	
	  

									
	 STATE OF
	 		 	 	 	)	 	
		 		 		 	)	 	 ss.

	 COUNTY OF
	 		 	 	 	)	 	

 The foregoing instrument was acknowledged before me this
         day of                     , 2011, by
                                         
       , as
                                         
        of. WALTON/SHR FPH, LLC, a Delaware limited liability company, on behalf of the limited liability company. 

 

	
	  

	Notary Public

  

	
	My Commission Expires:
	
	  

 

									
	 STATE OF
	 		 	 	 	)	 	
		 		 		 	)	 	 ss.

	 COUNTY OF
	 		 	 	 	)	 	

 The foregoing instrument was acknowledged before me this
         day of                     , 2011, by
                                         
       , as
                                         
        of FAIRMONT HOTELS & RESORTS (U.S.), Inc., a Delaware corporation, on behalf of the corporation. 

 

	
	  

	Notary Public

  

	
	My Commission Expires:
	
	  

									
	 STATE OF
	 		 	 	 	)	 	
		 		 		 	)	 	 ss.

	 COUNTY OF
	 		 	 	 	)	 	

 The foregoing instrument was acknowledged before me this
         day of                     , 2011, by
                                         
       , as
                                         
        of CP HOTELS (SCOTTSDALE 1) INC., a Delaware corporation, as a general partner of, and on behalf of SCOTTSDALE PRINCESS PARTNERSHIP, an Arizona general partnership. 

 

	
	  

	Notary Public

  

	
	My Commission Expires:
	
	  

 

									
	 STATE OF
	 		 	 	 	)	 	
		 		 		 	)	 	 ss.

	 COUNTY OF
	 		 	 	 	)	 	

 The foregoing instrument was acknowledged before me this ____ day of
______________, 2011, by ___________________________, as ________________________________ of CP HOTELS (SCOTTSDALE 2) INC., a Delaware corporation, as a general partner of, and on behalf of SCOTTSDALE PRINCESS PARTNERSHIP, an Arizona general
partnership. 
  

	
	  

	Notary Public

  

	
	My Commission Expires:
	
	  

 EXHIBIT A 
 Legal Description 

 Exhibit K 
 ASSET MANAGEMENT AGREEMENT 
 [attached behind] 

 Exhibit L-1 
 MASTER PARTNERSHIP AGREEMENT 
 [attached behind] 

 Exhibit L-2 
 NEW OPERATING TENANT AGREEMENT 
 [attached behind] 

 Exhibit M 
 MORTGAGE INDEBTEDNESS TERM SHEET 

 Exhibit N 
 HOTEL AGREEMENTS ESTOPPEL 

                   
         , 2011 
 FMT Scottsdale Owner, LLC 

Walton/SHR FPH, LLC 
 c/o Strategic
Hotels & Resorts, Inc. 
 200 West Madison 
 Suite 1700 
 Chicago, Illinois 60606 
 Attention: General Counsel 
 Telecopy: (312) 658-5799 

 

	 	Re:	 The Fairmont Princess Scottsdale 

 Ladies and Gentlemen: 
 Reference is made to that certain Hotel
Management Agreement dated as of September 1, 2006 between DTRS Scottsdale, L.L.C. (“Seller”) and Fairmont Hotels & Resorts (U.S.) Inc. (“Operator”), as amended by a First Amendment to
Hotel Management Agreement made as of                             , 2007 [sic], a Second Amendment to
Hotel Management Agreement made as of January 1, 2010, and a letter agreement dated [            ], 2011 (collectively, the “Hotel Management Agreement”)
for the management and operation of The Fairmont Princess Scottsdale Princess in Scottsdale, Arizona (the “Hotel”). 
 Reference is made to that certain Hotel Employment Agreement dated September 1, 2006 (the “Employment Agreement”) for provision of hotel employment services and related
agreements between Seller and Scottsdale Princess Partnership, a general partnership formed under the laws of Arizona (the “Employment Company”). 

The Seller has informed Operator and the Employment Company that the Seller intends to sell the Hotel to FMT Scottsdale
Owner, LLC, a Delaware limited liability company (the “Purchaser”). As part of such sale, the Seller will assign the Operating Agreement to Walton/SHR FPH, LLC, a Delaware limited liability company and an affiliate of
Purchaser (“Operating Tenant”). In connection therewith, each of Operator and the Employment Company hereby acknowledges, certifies and represents to the Purchaser and the Operating Tenant as follows: 

1. Neither the Hotel Management Agreement nor the Employment Agreement has been further modified or amended and is in
full force and effect and there are no other agreements between the Seller and Operator or the Seller and the Employment Company with respect to the operation or management of the Hotel. 

 2. There are no defaults, claims, rights of set-off, defenses or disputes
under the Hotel Management Agreement or the Employment Agreement, and no events have occurred which with the giving of notice or the passage of time or both could become a default under the Hotel Management Agreement or the Employment Agreement.
There are no pending arbitration proceedings under the Hotel Management Agreement or the Employment Agreement. 

3. No payments or other sums are past due to Operator under or pursuant to the Hotel Management Agreement or the
Employment Agreement, and there are no outstanding amounts owed to Seller under the Hotel Management Agreement or the Employment Agreement that are past due. 
 4. Operator has not assigned any of its rights under the Hotel Management Agreement and, to the best of its knowledge, Seller has not assigned any of its rights under the Hotel Management Agreement prior
to the assignment to the Operating Tenant, other than to the current mortgagee of the Hotel. Employment Company has not assigned any of its rights under the Employment Agreement and, to the best of its knowledge, Seller has not assigned any of its
rights under the Employment Agreement prior to the assignment to the Operating Tenant, other than to the current mortgagee of the Hotel. 
 5. The Basic Fee under the Hotel Management Agreement is [                    ]. There is no
accrued and unpaid Incentive Fee under the Hotel Management Agreement for any calendar year prior to calendar year 2011. 
 6. The Initial Operating Term (as defined in the Hotel Management Agreement) commenced on September 1, 2006 and shall terminate on December 31, 2036 and there are three ten-year renewal options.

 7. The Seller has approved the annual budget for calendar year 2011. 

8. Each of Operator and the Employment Company consents to the transfer of the Hotel to Purchaser and the assignment of
the Hotel Management Agreement and the Employment Company to the Operating Tenant. 
 Operator and Employment
Company understand that the Purchaser will be purchasing the Hotel and that the Operating Tenant will be assuming the Hotel Management Agreement and the Employment Agreement in reliance on this Estoppel Certificate and that Operator and Employment
Company will be bound by the terms hereof. This Estoppel Certificate shall inure to the benefit of the Purchaser, the Operating Tenant, their lenders and their successors and assigns. 

[signatures appear on the next page] 

 
							
	Very truly yours,
	
	FAIRMONT HOTELS & RESORTS (U.S.) INC.
		
	By:	 	  

	Title:	 	  

	
	SCOTTSDALE PRINCESS PARTNERSHIP, an Arizona general partnership
		
	By:	 	CP Hotels (Scottsdale 1) Inc.,
		 	a Delaware corporation, general partner
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

		
	By:	 	CP Hotels (Scottsdale 2) Inc.,
		 	a Delaware corporation, general partner
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

 

 Exhibit O 
 SELLER ESTOPPEL 

                   
         , 2011 
 FMT Scottsdale Owner, LLC 

Walton/SHR FPH, LLC 
 c/o Strategic
Hotels & Resorts, Inc. 
 200 West Madison 
 Suite 1700 
 Chicago, Illinois 60606 
 Attention: General Counsel 
 Telecopy: (312) 658-5799 

 

	 	Re:	 The Fairmont Princess Scottsdale 

 Ladies and Gentlemen: 
 Reference is made to that certain Purchase
and Sale Agreement dated as of             , 2011 between SHR SCOTTSDALE, L.L.C., a Delaware limited liability company (“SHR”), DTRS
SCOTTSDALE, L.L.C., a Delaware limited liability company (“DTRS”), and SHR SCOTTSDALE Z, LLC, a Delaware limited liability company (“SHR Z”) (SHR, DTRS, and SHR
Z are collectively referred to as, “Seller”), and FMT Scottsdale OWNER, LLC, a Delaware limited liability company (“Hotel Owner”), WALTON/SHR FPH, LLC, a
Delaware limited liability (“Operating Tenant”) (New Hotel Owner and New Operating Tenant are herein collectively referred to as “Purchaser”). 

The Seller has informed Operator that the Seller intends to sell the Hotel to Hotel Owner. And as part of such sale, the
Seller will assign the Agreements (defined below) to Operating Tenant. In connection therewith, Seller hereby acknowledges, certifies and represents to the Purchaser as follows: 

 

	 	1.	 None of (i) that certain Bar Management Agreement among Seller, Fairmont Hotels & Resorts (U.S.) Inc.
(“Operator”), and Gerber Group Scottsdale, LLC (“Gerber”) dated February 1, 2008 (“Bar Agreement”), (ii) that certain Restaurant Management Agreement among Seller,
Operator, and The Mina Group LLC (“Mina”) dated February 11, 2008 (“Restaurant Agreement”) and (iii) the ceratin Golf Facility Reservations and Use and Licensing Agreement among, PGA Tour,
Inc. (“PGA”), Tournament Players Club of Scottsdale, Inc. (“TPC”), Seller, and Operator dated December 20, 1985 (as amended, “Golf Agreement”, together with the Bar Agreement and
the Restaurant 

	 	 
Agreement, the “Agreements”) have been modified or amended and each such Agreement is in full force and effect. 

 

	 	2.	 There are no defaults, claims, rights of set-off, defenses or disputes under any of the Agreements, and no events have occurred which with the
giving of notice or the passage of time or both could become a default under any of the Agreements. There are no pending arbitration proceedings under any of the Agreements. 

 

	 	3.	 No payments or other sums are past due to Seller under or pursuant to any of the Agreements and there are no payments or other sums are past due to
any of Gerber, Mina, PGA or TPC. 

  

	 	4.	 Seller has not assigned any of its rights under any of the Agreement and, to the best of its knowledge, other than to the current mortgagee of the
Hotel. 

 Seller is also assigning to the Hotel Owner its rights in that
certain Lease dated as of December 30, 1985, by and between the City of Scottsdale, Arizona, as landlord (the “City”), and SRH Scottsdale, L.L.C., as successor to the Scottsdale Princess Partnership, as
tenant, (the “Seller”) as amended by amendments dated as of November 17, 1986, April 4, 1995, December 23, 2002 (including both a 3rd amendment and a Wall and Sign Agreement) (the “Ground Lease”) and reflected in a Memorandum of
Ground Lease and Right of First Refusal dated as of November 21, 1986. The Fairmont Scottsdale Princess (the “Hotel”) is built, in part, on the leased premises referred to in the Ground Lease. In connection therewith,
the Seller further acknowledges, certifies and represents to the Purcahser as follows: 
  

	 	5.	 The Ground Lease has not been further modified or amended other than as set forth above, is in full force and effect, and there are not any other
agreements between the Seller and the City with respect to the premises leased pursuant to the Ground Lease. 

  

	 	6.	 All payments or other sums due to the City pursuant to the Ground Lease have been paid through
            , 2011. 

  

	 	7.	 There are no defaults, claims, rights of set-off, defenses or disputes under the Ground Lease, and no events have occurred which with the giving of
notice or the passage of time or both could become a default under the Ground Lease. There are no pending arbitration proceedings under the Ground Lease. 

Seller understands that the Purchaser will be purchasing the Hotel and that the Operating Tenant will be leasing the
Hotel in reliance on this Estoppel Certificate and that Seller will be bound by the terms hereof. This Estoppel Certificate shall inure to the benefit of the Purchaser, the Operating Tenant, their lenders and their successors and assigns.

			
	Very truly yours,
	
	SELLER:
	
	 SHR SCOTTSDALE, L.L.C., 
 a Delaware limited liability company

		
	By:	 	 
	Its:	 	
	
	 DTRS SCOTTSDALE, L.L.C., 
 a Delaware limited liability company

		
	By:	 	 
	Its:	 	
	
	 SHR SCOTTSDALE Z, L.L.C., 
 a Delaware limited liability company

		
	By:	 	 
	Its:	 	

 Exhibit P 
 GROUND LEASE ESTOPPEL 

                   
         , 2011 
 FMT Scottsdale Owner, LLC 

c/o Strategic Hotels & Resorts, Inc. 

200 West Madison 
 Suite 1700 

Chicago, Illinois 60606 
 Attention: General
Counsel 
 Telecopy: (312) 658-5799 
  

	 	Re:	 The Fairmont Princess Scottsdale 

 Ladies and Gentlemen: 
 Reference is made to
that certain Lease dated as of December 30, 1985, by and between the City of Scottsdale, Arizona, as landlord (the “City”), and SRH Scottsdale, L.L.C., as successor to the Scottsdale Princess Partnership,
as tenant, (the “Seller”) as amended by amendments dated as of November 17, 1986, April 4, 1995, December 23, 2002 (including both a 3rd amendment and a Wall and Sign Agreement) (the “Ground Lease”) and reflected in a Memorandum of
Ground Lease and Right of First Refusal dated as of November 21, 1986. The Fairmont Scottsdale Princess (the “Hotel”) is built, in part, on the leased premises referred to in the Ground Lease. 

The Seller has informed the City that the Seller intends to sell the Hotel and assign the Ground Lease to FMT Scottsdale
Owner, LLC, a Delaware limited liability company (the “Purchaser”). In connection therewith, the City hereby acknowledges, certifies and represents to the Purchaser as follows: 

1. The Ground Lease has not been further modified or amended other than as set forth above, is in full force and effect,
and there are not any other agreements between the Seller and the City with respect to the premises leased pursuant to the Ground Lease. 
 2. All payments or other sums due to the City pursuant to the Ground Lease have been paid through             , 2011. 

3. There are no defaults, claims, rights of set-off, defenses or disputes under the Ground Lease, and no events have
occurred which with the giving of notice or the passage of time or both could become a default under the Ground Lease. There are no pending arbitration proceedings under the Ground Lease. 

 The City understands that the Hotel Owner will be purchasing the Hotel and
assuming the Ground Lease in reliance on this Estoppel Certificate and that City will be bound by the terms hereof. This Estoppel Certificate shall inure to the benefit of the Purchaser and its lenders and its successors and assigns. 

Very truly yours, 
 City of ScottsdaleRestructuring Agreement

 Exhibit 10.3 
 RESTRUCTURING AGREEMENT 
 Dated effective as of June 9, 2011 

By and Among 

SHR SCOTTSDALE, L.L.C., a Delaware limited liability company, as Borrower, 

STRATEGIC HOTEL FUNDING, L.L.C., 
 a Delaware limited liability company, as Guarantor 
 DTRS SCOTTSDALE,
L.L.C., a Delaware limited liability company, as Operating Lessee 
 and 

BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO 

LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE REGISTERED 

HOLDERS OF THE CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3 
 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3 
 as Lender

 RESTRUCTURING AGREEMENT 

THIS RESTRUCTURING AGREEMENT (this “Agreement”) is entered into effective as of June 9, 2011 by and among
BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE REGISTERED HOLDERS OF THE CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2007-FL3 (“Lender”), SHR SCOTTSDALE, L.L.C., a Delaware limited liability company (“Borrower”), DTRS SCOTTSDALE, L.L.C., a Delaware limited liability company (“Operating
Lessee”) and STRATEGIC HOTEL FUNDING, L.L.C., a Delaware limited liability company (“Guarantor”). Borrower, Operating Lessee and Guarantor are sometimes collectively referred to herein as
“Borrower Parties.” 
 RECITALS 

The following recitals are a material part of this Agreement: 
 A. Pursuant to that certain Loan And Security Agreement dated September 1, 2006, as amended by that certain Amendment to Loan and Security Agreement dated May 9, 2007 (as amended, the
“Loan Agreement”), Citigroup Global Markets Realty Corp. (“Original Lender”) made a loan in the principal sum of $140,000,000.00 (the “Loan”) to Borrower, which Loan is
evidenced by that certain Note dated September 1, 2006, as amended by that certain Amendment to Promissory Note dated May 9, 2007, in the original principal amount of $140,000,000.00 (as amended, the “Note”).

 B. The Loan is further evidenced and secured by the following: 

(i) that certain Fee and Leasehold Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases,
Rents, Hotel Revenue and Security Deposits dated September 1, 2006, recorded in the real estate records of Maricopa County, Arizona as Document No. 2006-1183787, as amended by that certain Omnibus Amendment to Loan Documents dated
May 9, 2007 (the “Omnibus Amendment”) (as amended, the “Security Instrument”) encumbering certain property located in Maricopa County, Arizona (the “Property”), as more
particularly described in the Security Instrument; 
 (ii) that certain Assignment of Leases, Rents, Hotel Revenues and Security
Deposits dated September 1, 2006, recorded in the real estate records of Maricopa County, Arizona as Document No. 2006-1183788, as amended by the Omnibus Amendment (as amended, the “Assignment of Leases”);

 (iii) that certain Account and Control Agreement dated September 1, 2006, as amended by the Omnibus Amendment (as
amended, the “Account Agreement”) between the Original Lender, Cash Management Bank, Borrower and Operating Lessee; and 
 (iv) that certain Trademark Security Agreement dated as of September 1, 2006, as amended by the Omnibus Amendment (as amended, the “Trademark Agreement”) between Borrower and
Original Lender. 

 C. The Loan is further evidenced and secured by that certain Guaranty of Recourse
Obligations dated September 1, 2006, as amended by the Omnibus Amendment (as amended, the “Recourse Guaranty”) executed by Guarantor in favor of Original Lender, and that certain Environmental Indemnity dated
September 1, 2006, as amended by the Omnibus Amendment (as amended, the “EIA”) executed by Guarantor in favor of Original Lender (the Recourse Guaranty and the EIA are sometimes collectively referred to herein as the
“Guaranties”). 
 D. The Loan Agreement, the Note, the Security Instrument, the Assignment of Leases,
the Account Agreement, the Trademark Agreement, the Guaranties and all other documents evidencing, securing or executed in connection with the Loan are sometimes referred to in this Agreement collectively as the “Loan
Documents” All capitalized terms used in this Agreement that are not otherwise defined herein shall have the meanings ascribed to them in the Loan Documents, as in effect on the date of this Agreement. Original Lender has assigned its
interests in the Note, Security Instrument, the Loan Agreement and other Loan Documents to Lender and Lender is the current holder thereof. 
 E. The outstanding principal balance of the Loan as of the date hereof, prior to giving effect to the terms of this Agreement, is $140,000,000.00 (such principal balance, together with all interest
accrued thereon pursuant to the Loan Documents and all other amounts that may be or become payable under the Loan Documents are referred to in this Agreement collectively as the “Indebtedness”). 

F. Simultaneously with the transactions contemplated by this Agreement and the Assumption Agreement (defined below), the Mezzanine Loan
has been purchased by the indirect owner of equity in the New Borrower and retired in full in connection with the capitalization of the New Borrower (the “Mezzanine Loan Redemption”). 

G. Simultaneously with the transactions contemplated by this Agreement and the Assumption Agreement (defined below), Lender shall receive
payment of (i) $7,000,000.00, which has been applied by Lender to payment of a portion of the outstanding principal balance of the Loan (the “$7,000,000 Mortgage Loan Pay Down”), and (ii) sufficient funds to pay the Costs
and Expenses (as hereinafter defined). 
 H. Simultaneously with the transactions contemplated by this Agreement and the
Assumption Agreement (defined below), Lender shall receive payment of a deposit (the “CAPEX Deposit”) in the amount of $21,400,291.41, which amount shall be deposited by Lender in the CAPEX Reserve Account pursuant to
Section 16.6 of the Loan Agreement (as modified by this Agreement). 
 I. On or before the date of this Agreement,
Borrower has delivered to Lender, and Lender has approved: (i) the Budget for the period through the end of the Fiscal Year in which the date of this Agreement occurs, (ii) the preliminary project budget for the construction of expanded
ballroom and meeting facilities at the Property (the “Renovation Project”) attached hereto as Exhibit B, and (iii) the timeline for construction of the Renovation Project and meeting space launch attached hereto
as Exhibit C. 

  
 2 

 J. On or before the date of this Agreement, Borrower has delivered to Lender an Interest
Rate Cap Agreement with an Acceptable Counterparty, with a term through the Fourth Extended Maturity Date (as hereinafter defined), a notional amount of $133,000,000.00 and a strike rate equal to the LIBOR Cap Strike Rate, and otherwise upon terms
and conditions acceptable to Lender, in its sole discretion, together with (i) a Collateral Assignment of Interest Rate Cap Agreement executed by Borrower, (ii) an acknowledgement and consent to such collateral assignment executed by the
Acceptable Counterparty, and (iii) a Counterparty Opinion. 
 K. On or before the date of this Agreement, Borrower has
delivered to Lender the Amendment to Hotel Management Agreement dated as of the date of this Agreement, by and between Operating Lessee and Fairmont Hotels & Resorts (U.S.) Inc. (“Manager”), attached hereto as
Exhibit D (the “Amendment to Management Agreement”), and Borrower has requested Lender’s consent to the Amendment to Management Agreement. 
 L. On or before the date of this Agreement, Guarantor has delivered to Lender that certain Completion Guaranty with respect to the completion of the Renovation Project. 

M. As of the date of this Agreement, Lender has obtained all necessary confirmations from the applicable Rating Agencies with respect to
the terms of this Agreement. 
 N. Borrower and Guarantor have requested that Lender agree to the extension of the term of the
Loan and agree to modify the terms of the Loan, all in accordance with the terms and conditions of this Agreement. Lender is willing to extend the term of the Loan and otherwise modify the terms of the Loan subject to and in accordance with the
terms and conditions of this Agreement. 
 NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the sufficiency and receipt of which is hereby acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows: 
 1. Definitions. 
 (a) All references in the Loan Documents to the
“Mezzanine Account”, “Mezzanine Borrower”, “Mezzanine Lender”, “Mezzanine Lender Monthly Debt Service Notice Letter”, “Mezzanine Loan”, “Mezzanine Loan Agreement”, “Mezzanine Loan Debt
Service”, “Mezzanine Loan Default Notice”, “Mezzanine Loan Default Revocation Notice”, “Mezzanine Loan Documents”, “Mezzanine Note”, Mezzanine Pledge” and “Permitted Mezzanine Transfer” are
hereby deleted in their entirety. 
 (b) The definition of “Best of Borrower’s Knowledge” set forth in
Section 1.1 of the Loan Agreement is hereby amended by deleting “Ryan Bowie” and inserting “Tom Healy” in place thereof. 
 (c) The definition of “LIBOR Cap Strike Rate” set forth in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and replaced with the following: “LIBOR Cap Strike
Rate” shall mean 4.00%.” 

  
 3 

 (d) The definition of “Title Policy” set forth in Section 1.1 of the Loan
Agreement is hereby amended by inserting “and all updates and/or date-down endorsements thereto” after “ALTA mortgagee title insurance policy” in the first line thereof. 

(e) Immediately upon assignment and assumption of the Loan in accordance with Section 4 of this Agreement, the definition of
“Ultimate Equity Owner” set forth in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and replaced with the following: “Ultimate Equity Owner” shall mean each of Strategic Hotel Funding, L.L.C. and
Walton Acquisition REOC Master VI, L.L.C. Any reference in the Loan Agreement to the “Ultimate Equity Owners” shall mean either “Ultimate Equity Owner.” 
 2. Extension of Maturity Date. (a) Lender and Borrower hereby extend the Third Extended Maturity Date to December 31, 2013 (the “Fourth Extended Maturity
Date”). All references in the Note, the Loan Agreement and the other Loan Documents to the “Maturity Date” shall be deemed references to December 31, 2013 or such other date on which the final payment of the Principal
Amount under the Note becomes due and payable as provided in the Note or as provided in the Loan Agreement, whether at such stated maturity date, by declaration of acceleration, or otherwise. 

(b) Section 5 of the Note is hereby amended by adding the following subsection (c) at the end thereof: 

“(c) Fifth Extension Option. Borrower shall have the option (the “Fifth Extension
Option”) to extend the Fourth Extended Maturity Date for one (1) additional term (the “Fifth Extension Term”) of fifteen (15) months and nine (9) days, from the Fourth Extended Maturity Date to
April 9, 2015 (the “Fifth Extended Maturity Date”), upon satisfaction of the following conditions (the “Fifth Extension Conditions”): 

(i) Borrower shall have given written notice (the “Fifth Extension Notice”) to the Lender not less
than thirty (30) days prior to the Fourth Extended Maturity Date, of its election to exercise the Fifth Extension Option; 
 (ii) no Event of Default shall have occurred and be continuing on either the date on which the Fifth Extension Notice is delivered to Lender or on the commencement date of the Fifth Extension Term;

 (iii) Borrower shall have purchased and delivered to Lender an Extension Interest Rate Cap Agreement for the
Fifth Extension Term from or with an Acceptable Counterparty, with a notional amount equal to the outstanding Principal Amount as of the Fourth Extended Maturity Date (taking into account the reductions in the Principal Amount described in this
Section 5(c)), and a strike rate equal to the LIBOR Cap Strike Rate, together with (i) a Collateral Assignment of Interest Rate Cap Agreement executed by Borrower, (ii) an acknowledgement and consent to such collateral
assignment executed by the Acceptable Counterparty, and (iii) a Counterparty Opinion; 

  
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 (iv) The Property shall have a DSCR as of the Fourth Extended Maturity Date
of 1.25:1 or greater (as calculated on a trailing twelve month basis), provided, however, that if the foregoing DSCR is not achieved as of the Fourth Extended Maturity Date but all of the other Fifth Extension Conditions have been satisfied as of
such date, Borrower may elect to make to Lender on the Fourth Extended Maturity Date a partial payment of the Principal Amount in an amount sufficient to cause the DSCR requirement to be satisfied, which funds shall be applied by Lender to reduce
the outstanding Principal Amount. The payment by Borrower to Lender of such amount shall constitute the satisfaction of the condition set forth in this clause (iv) with respect to the Fifth Extension Option; 

(v) On or before the Fourth Extended Maturity Date, Borrower shall have delivered to Lender written evidence, satisfactory
to Lender in its reasonable discretion, that the Renovation Project has been completed and that Borrower has received from the applicable Governmental Authority all certificates of occupancy necessary for the occupancy and operation of the completed
improvements; 
 (vi) As of the Fourth Extended Maturity Date, the then-current balance of the Excess Cash
Reserve Account plus any amounts that had been previously on deposit in the Excess Cash Reserve Account but were applied by Lender to reduce the outstanding Principal Amount pursuant to Section 16.7 (“Previous Excess Cash
Paydowns”) shall be equal to or greater than $16,000,000.00, provided, however, that if the then-current balance of the Excess Cash Reserve Account plus Previous Excess Cash Paydowns is less than $16,000,000.00 as of such date, Borrower
may elect to deposit with Lender additional funds in the amount sufficient to increase the balance of the Excess Cash Reserve Account plus Previous Excess Cash Paydowns to $16,000,000.00; 

(vii) On the Fourth Extended Maturity Date, Borrower shall have delivered its written request to Lender that Lender
disburse from the Excess Cash Reserve Account funds in an amount, when added to the aggregate amount of all Previous Excess Cash Paydowns, equal to the greater of (A) the then-current balance of the Excess Cash Reserve Account, or
(B) $16,000,000.00, and Lender shall have applied such funds to reduce the outstanding Principal Amount in such order and priority as Lender shall determine in its sole discretion; and 

(viii) Borrower shall have paid to Lender a processing fee in an amount equal to 0.75% of the then outstanding Principal
Amount (taking into account the reductions in the Principal Amount described in this Section 5(c)), which fee shall be deemed to be fully earned upon Lender’s receipt thereof.” 

3. Amendment to Management Agreement; Budget Approval. (a) Lender hereby consents to the Amendment to Management
Agreement attached hereto as Exhibit D. 
 (b) Borrower and Operating Lessee hereby acknowledge and agree that Lender
shall be entitled to exercise all of the rights of Operating Lessee to approve any “Annual Budget” 

  
 5 

 
for each Fiscal Year pursuant to Section 4.1 of the Management Agreement and neither Operating Lessee nor Borrower shall approve any such Annual Budget without having first obtained
Lender’s prior written approval of such Annual Budget, which approval shall be exercised in a manner consistent with the Management Agreement. Immediately upon Operating Lessee’s receipt thereof, Operating Lessee shall deliver the Proposed
Annual Budget (as defined in the Management Agreement) to Lender for review and Operating Lessee and Borrower shall cooperate with Lender with respect to Lender’s review and approval of, and objections to, the Proposed Annual Budget all of
which shall be done in accordance with Section 4.1 of the Management Agreement. On or before the date of this Agreement, Operating Lessee has notified Manager in writing that Operating Lessee has granted to Lender the right to exercise
all of Operating Lessee’s approval rights with respect to the Annual Budget pursuant to Section 4.1 of the Management Agreement and Operating Lessee shall obtain Manager’s written acknowledgement of, and agreement to the
provisions of this Section 3.1(b). Upon approval by Lender, the Annual Budget shall be the “Budget” for all purposes under the Loan Documents. 
 4. Transfer of Property; Assumption of Loan; Additional Parcel; Lender Consent. 
 (a) Immediately after the execution and delivery of this Agreement, Borrower shall: 
 (i) convey the Property to FMT Scottsdale Owner, LLC, a Delaware limited liability company (“New Borrower”), the membership interests of which are indirectly owned 50% by a Close
Affiliate of Guarantor and 50% by Walton Scottsdale Investors VI, L.L.C., a Close Affiliate of Walton Acquisition REOC Master VI, L.L.C.; 
 (ii) assign to New Borrower all of Borrower’s right, title and interest in and under the Ground Lease; 
 (iii) assign to New Borrower all of Borrower’s right, title and interest in and to the Trademark Collateral (as defined in the Trademark Agreement); 

(iv) terminate the Operating Lease and cause New Borrower to enter into a new operating lease, effective as of the date of this
Agreement, between New Borrower and Walton/SHR FPH, LLC, a Delaware limited liability company (the “New Operating Lessee”), and cause Operating Lessee to assign to New Operating Lessee all of Operating Lessee’s right,
title and interest in and under the Hotel Management Agreement, and, upon execution of such new operating lease and assignment of the Hotel Management Agreement, all references in the Loan Agreement and the other Loan Documents to the
“Operating Lessee” shall be deemed to be references to the New Operating Lessee. 
 (b) Immediately after the
execution and delivery of this Agreement, Borrower shall cause to be fully executed and delivered to Lender: 
 (i) the
Assumption Agreement in form attached hereto as Exhibit E (the “Assumption Agreement”), whereby Borrower and Operating Lessee assign to New Borrower, and New Operating Lessee, respectively, and New Borrower and New
Operating Lessee assume, all of the obligations of Borrower and Operating Lessee, respectively, under the Loan Documents; 

  
 6 

 (ii) the Guaranty of Recourse Obligations, Completion Guaranty and Environmental Indemnity
whereby Walton Street Real Estate Fund VI, L.P., Walton Street Real Estate Fund VI-Q, L.P., Walton Street Real Estate Fund VI-E, L.P., Walton Street Real Estate Investors VI, L.P., Walton Street Real Estate Partners VI, L.P., Walton Street
Real Estate Partners VI-NGE, L.P., and WSC Capital Holdings VI, L.P., each a Delaware limited partnership (individually, collectively and jointly and severally, the “Additional Guarantor”), guarantee to Lender
all of the obligations described therein; 
 (iii) the Subordination of Operating Lease, whereby the interests of New Operating
Lessee under the replacement operating lease are subordinated to the Loan; and 
 (iv) all such other documents necessary to
evidence the transfer of the Property and the assignment and assumption of the Loan described in the foregoing documents. 
 (c)
Lender and Borrower hereby acknowledge and agree that, in order to provide adequate land to construct and operate the Renovation Project, the vacant parcel of land described in Exhibit F attached hereto (the “Additional
Parcel”) shall be added to the Property and the collateral for the Loan upon the execution and delivery of this Agreement. Borrower shall cause to be executed and delivered, on the date of this Agreement, a deed conveying the Additional
Parcel to New Borrower and shall cause New Borrower and New Operating Lessee to execute and deliver to Lender a Modification and Spreader Agreement whereby the lien of the Security Instrument is spread to encumber the Additional Parcel. 

(d) Borrower Parties shall obtain all necessary third-party consents to the foregoing transfers, conveyances and assignments, if any, and
shall deliver to Lender written evidence of all such third-party consents. 
 (e) Upon the execution and delivery of all of the
documents described in this Section 4, Lender hereby consents to the conveyance of the Property by Borrower to New Borrower, the assignment by Borrower to New Borrower of the Ground Lease, the assignment by Borrower and assumption by New
Borrower of the Loan, the execution of the New Operating Lease, the assignment of the Hotel Management Agreement and the addition of the Additional Parcel to the Property and collateral for the Loan. 

5. Consent to Ground Lease Amendment. Upon approval thereof by the City of Scottsdale, as ground lessor, Borrower intends
to enter into, or cause New Borrower to enter into, the Ground Lease Amendment attached hereto as Exhibit G. Lender hereby consents to the execution of such Ground Lease Amendment, provided that such Ground Lease Amendment is, in form and
substance, identical in all material respects to Exhibit G attached hereto. 
 6. Cash Management.
(a) Section 3.1.5 and Section 3.1.6 of the Loan Agreement are hereby deleted in their entirety and replaced with the following: 
 “3.1.5 Monthly Funding of Sub-Accounts. (a) Upon the occurrence and during the continuance of an Event of Default, Borrower hereby irrevocably authorizes Lender to transfer (and,
pursuant to the Account Agreement shall irrevocably authorize Cash Management Bank to execute any corresponding instructions of Lender) all funds then on deposit in the Holding Account, Sub-

  
 7 

 
Accounts, the Excess Cash Reserve Account and the other reserve accounts under the Loan Agreement, at Lender’s election in its sole discretion, to Lender or as directed by Lender in its sole
discretion. Provided no Event of Default has occurred and is then continuing, Borrower hereby irrevocably authorizes Lender to transfer (and, pursuant to the Account Agreement shall irrevocably authorize Cash Management Bank to execute any
corresponding instructions of Lender), and Lender shall transfer (and hereby instructs Cash Management Bank to transfer pursuant to disbursement instructions from Lender), from the Holding Account on each Business Day, or as soon thereafter as
sufficient funds are in the Holding Account to make the applicable transfers, funds in the following amounts and in the following order of priority: 
 (i) at any time that Manager does not reserve for or otherwise set aside and pay Impositions and Other Charges directly, funds in an amount equal to the Monthly Tax Reserve Amount and any other amounts
required pursuant to Section 16.1 for the month in which the Payment Date immediately following the date of the transfer from the Holding Account occurs shall be transferred to the Tax Reserve Account; 

(ii) at any time when the insurance required to be maintained pursuant to this Agreement is provided under a blanket
policy in accordance with Article VI hereof and the premiums in respect of such blanket policy are not paid or caused to be paid before such premiums become due and payable or at any time that Manager does not pay, reserve for or otherwise
set aside and pay, premiums with respect to the Insurance Requirements, funds in an amount equal to the Monthly Insurance Reserve Amount for the month in which the Payment Date immediately following the date of the transfer from the Holding Account
occurs shall be transferred to the Insurance Reserve Account, or following an Event of Default or an Insurance Reserve Trigger, funds sufficient (calculated on a monthly basis from the Insurance Reserve Trigger until the month in which the premium
is due) to permit Lender to pay insurance premiums for the insurance required to be maintained pursuant to the terms of this Agreement and the Security Instrument on the respective due dates therefor (up to a maximum amount equal to the aggregate
annual insurance premium required hereunder) shall be transferred to the Insurance Reserve Account, and Lender shall so pay such funds to the insurance company having the right to receive such funds; 

(iii) funds in an amount equal to the amount of Debt Service due on the Payment Date for the month in which the Payment
Date immediately following the date of the transfer from the Holding Account occurs shall be transferred to the Current Debt Service Reserve Account; 
 (iv) at any time that Manager does not reserve or otherwise set aside for FF&E in accordance with the terms of the Management Agreement, funds in an amount equal to the Monthly FF&E Reserve Amount
for the month in which the Payment Date immediately following the date of the transfer from the Holding Account occurs shall be transferred to the FF&E Reserve Account; 

  
 8 

 (v) funds in an amount equal to the Operating Expenses of the Property for
the month in which the Payment Date immediately following the date of the transfer from the Holding Account occurs, as set forth in the Budget, shall be transferred to the Operating Expense Sub-Account; 

(vi) funds in an amount equal to the Lender Approved Portion of the Asset Management Fee (as hereinafter defined) earned
in the month immediately prior to the month in which the Payment Date occurs shall be transferred to the Asset Management Fee Sub-Account; 
 (vii) prior to the Fourth Extended Maturity Date, subject to the provisions of Section 3.1.5(b), funds in an amount equal to the balance (if any) remaining or deposited in the Holding Account
after the foregoing deposits (such remainder being hereinafter referred to as “Excess Cash Flow”) shall be transferred to the Excess Cash Reserve Sub-Account; and 

(viii) during the Fifth Extension Term, if applicable, Excess Cash Flow shall be transferred as follows: (A) fifty
percent (50%) of the Excess Cash Flow shall be transferred to the Excess Cash Reserve Sub-Account, and (B) fifty percent (50%) of the Excess Cash Flow shall be transferred to the Borrower’s Account (or to a third-party account as
directed by Borrower), free of any Lien or continuing security interest. 
 (b) Notwithstanding anything to the
contrary contained herein or in the Security Instrument, but subject to Section 7.3, to the extent that Borrower shall fail to pay any mortgage recording tax, costs, expenses or other amounts pursuant to Section 19.12 of this
Agreement within the time period set forth therein, Lender shall have the right, at any time, upon five (5) Business Days’ notice to Borrower, to withdraw from the Holding Account, an amount equal to such unpaid taxes, costs, expenses
and/or other amounts and pay such amounts to the Person(s) entitled thereto. 
 3.1.6 Payments from Sub-Accounts.
(a) Borrower irrevocably authorizes Lender to make and, provided no Event of Default shall have occurred and be continuing, Lender hereby agrees to make (and hereby instructs Cash Management Bank to make), the following payments from the
Sub-Accounts to the extent of the monies on deposit therefor: 
 (i) if notified (timely) by Borrower or
otherwise determined by Lender in its reasonable discretion that Manager will not pay Impositions or Other Charges, funds from the Tax Reserve Account to Lender sufficient to permit Lender to pay (or otherwise to Borrower to reimburse Borrower for)
(A) Impositions and (B) Other Charges, on the respective due dates therefor, and Lender shall so pay such funds to the Governmental Authority having the right to receive such funds (or shall reimburse Borrower or Operating Lessee upon
confirmation of payment by transfer to the Borrower’s Account (or to a third-

  
 9 

 
party account as directed by Borrower) free of any Lien or continuing security interest); 
 (ii) at any time when the insurance required to be maintained pursuant to this Agreement is provided under a blanket policy in accordance with Article VI hereof and the premiums in respect of such
blanket policy are not paid or caused to be paid before such premiums become due and payable or at any time that Manager does not pay, reserve for or otherwise set aside and pay, premiums with respect to the Insurance Requirements and otherwise
following an Insurance Reserve Trigger, funds from the Insurance Reserve Account to Lender sufficient to permit Lender to pay insurance premiums for the insurance required to be maintained pursuant to the terms of this Agreement and the Security
Instrument, on the respective due dates therefor, and Lender shall so pay such funds to the insurance company having the right to receive such funds; 
 (iii) funds from the Current Debt Service Reserve Account to Lender sufficient to pay Debt Service on each Payment Date, and Lender, on each Payment Date, shall apply such funds to the payment of the Debt
Service payable on such Payment Date; 
 (iv) if notified (timely) by Borrower or otherwise determined by Lender
in its reasonable discretion that Manager will not reserve for FF&E as required under the Management Agreement, and provided Borrower shall have complied with the procedures set forth in Section 16.4, funds from the FF&E Reserve
Account to the Borrower’s Account to pay for FF&E; 
 (v) funds from the Operating Expense Sub-Account
to Borrower sufficient to pay the Operating Expenses of the Property as set forth in the Budget; 
 (vi) funds
from the Asset Management Fee Sub-Account to Borrower by transfer to the Borrower’s Account (or to a third-party account as directed by Borrower) free of any Lien or continuing security interest; and 

(vii) all funds then on deposit in the Excess Cash Reserve Sub-Account to Lender to be deposited into the Excess Cash
Reserve Account. 
 If and to the extent any Guarantor or any Affiliate of a Guarantor (other than Borrower or
Operating Lessee) makes a payment of any Imposition, any insurance premium under a blanket policy or capital expenditure or overhead charge which qualifies as an Operating Expense, with respect to the Property and such expense is provided for in the
Budget, provided no Event of Default has occurred and is continuing, such Guarantor or Affiliate will be entitled to receive reimbursement from the Manager, Lender, or the applicable Sub-Account established hereunder or under the Management
Agreement and such payment shall not be required to be re-deposited into the Collection Account. 

  
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 (b) The “Lender Approved Portion of the Asset Management
Fee” shall be an annual fee payable to an Affiliate of Borrower or any Guarantor with respect to the Property in an amount equal to 1% of the “Total Revenues” (as defined in the Hotel Management Agreement) each Fiscal Year,
provided that, if the Property experiences negative cash flow during any 3-month period, as determined by Lender on a trailing 3 month basis, the Lender Approved Portion of the Asset Management Fee shall be reduced to 0.25% of the “Total
Revenues” (as defined in the Hotel Management Agreement) of the Property for such Fiscal Year. 
 (c)
Borrower hereby acknowledges and agrees that, notwithstanding anything to the contrary set forth herein, upon the occurrence and during the continuance of an Event of Default, all funds then on deposit in the Sub-Accounts, at Lender’s election
in its sole discretion, shall be disbursed to Lender or as directed by Lender in its sole discretion.” 
 (b) Pursuant to,
and in accordance with, the Account Agreement, Lender hereby instructs Cash Management Bank to establish the following new Sub-Accounts: (i) the Operating Expense Sub-Account, (ii) the Asset Management Fee Sub-Account, and (iii) the
Excess Cash Reserve Sub-Account. 
 7. Borrower Covenants. (a) Lender and Borrower hereby amend Article
V of the Loan Agreement by adding the following Section 5.4 to the end thereof: 
 “Section
5.4 Non-Interference. Borrower, Guarantor and Additional Guarantor, each for itself and its respective Affiliates that it Controls, hereby covenant and agree that: (a) such parties shall cooperate fully with and assist in
Lender’s exercise of its rights and remedies under the Loan Documents or under applicable laws, including foreclosure of the Security Instrument and certain other Loan Documents and appointment of one or more receivers to take possession of the
Property, as determined by Lender in its sole discretion; and (b) no such party shall (i) take any action of any kind or nature whatsoever, directly or indirectly, to delay, oppose, avoid, contest, impede, obstruct, hinder, enjoin or
otherwise interfere in any manner with Lender’s exercise of its rights and remedies under the Loan Documents or under applicable law, or (ii) allege, assert or otherwise pursue any claim, defense, affirmative defense, counterclaim, cause
of action, setoff or other right it may have against Lender relating to Lender’s exercise of its rights and remedies under the Loan Documents or applicable law, nor shall such party cause, conspire with, collude with, act in concert with,
solicit, encourage or support any other Person to do, in doing or in attempting to do any of the foregoing.” 
 (b) By
executing this Agreement, Guarantor joins in and agrees to be bound by the covenants set forth in Section 5.4 of the Loan Agreement. 

  
 11 

 8. CAPEX Reserve Account. The following new Section 16.6 is added
at the end of Article XVI of the Loan Agreement: 
 “Section 16.6 CAPEX Reserve Account.
(a) Borrower has deposited with Lender funds in the amount of $21,400,291.41 (the “Original CAPEX Reserve Deposit Amount”) to be deposited into an account maintained by Lender (the “CAPEX Reserve
Account”), which funds shall be held by Lender as additional collateral to secure the payment of the Indebtedness and (provided no Event of Default shall have occurred and is then continuing) disbursed by Lender to pay costs and
expenses incurred in the construction of the Renovation Project (the “Renovation Costs”) pursuant to the budget for the Renovation Project approved by Lender (as the same may be revised pursuant to this
Section 16.6, the “Approved Project Budget”) and in accordance with this Section 16.6. Lender and Borrower acknowledge that the plans and specifications for the Renovation Project have not been
completed and not all bids for the Renovation Project have been delivered to Borrower as of the date of the Approved Project Budget and Borrower agrees that it shall complete all such plans and specifications by no later than September 6, 2011,
and obtain all such bids by no later than October 10, 2011. Upon completion of the plans and specifications for the Renovation Project, Borrower shall submit the same to Lender for approval, which approval shall not be unreasonably withheld,
conditioned or delayed. Upon Lender’s approval of such plans and specifications and Borrower’s receipt of all bids for construction of the Renovation Project, to the extent necessary, Borrower shall submit to Lender for approval by Lender,
in its reasonable discretion, a revised project budget for the Renovation Project showing all changes to the Approved Project Budget resulting from the bids received, and, upon Lender’s approval thereof, such revised project budget shall be
deemed to be the Approved Project Budget. Upon Lender’s approval of such revised project budget, the amount required to be deposited into the CAPEX Reserve Account under this Section 16.6 shall be adjusted to be an amount equal to
one hundred ten percent (110%) of the total amount of the Approved Project Budget (the “Adjusted CAPEX Reserve Deposit Amount”) and Borrower shall deposit with Lender additional funds in an amount equal to the difference
between the Original CAPEX Reserve Deposit Amount and the Adjusted CAPEX Reserve Deposit Amount. If the Adjusted CAPEX Reserve Deposit Amount is less than the Original CAPEX Reserve Deposit Amount, then Lender shall disburse to Borrower funds from
the CAPEX Reserve Account in an amount equal to the difference between the Original CAPEX Reserve Deposit Amount and the Adjusted CAPEX Reserve Deposit Amount. The CAPEX Reserve Account shall at all times be maintained “in balance” such
that at all times sufficient funds remain in the CAPEX Reserve Account to pay all remaining costs of completion of the Renovation Project and, in the event insufficient funds remain in the CAPEX Reserve Account to keep the CAPEX Reserve Account
“in balance” Borrower shall deposit sufficient additional funds into the CAPEX Reserve Account to re-balance the CAPEX Reserve Account, 

  
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 (b) Provided that no Event of Default shall have occurred and be continuing, Borrower shall
have the right to request disbursements from the CAPEX Reserve Account to pay Renovation Costs (not more frequently than once in any thirty (30) day period) by delivery of the following to Lender: (i) a construction draw request on the
form attached hereto as Exhibit H, and attaching all applicable invoices paid or to be paid in the amount sought to be paid or reimbursed, lien waivers or releases and other appropriate supporting information reasonably acceptable to Lender;
(ii) an Officers’ Certificate (A) stating that all elements of the Renovation Project to be funded or reimbursed by the requested disbursement have been completed in good and workmanlike manner and in accordance with all Legal
Requirements and the Approved Project Budget, such certificate to be accompanied by a copy of any license, permit or other approval by any Governmental Authority required to commence and/or complete the elements of the Renovation Project to which
such disbursement relates, (B) stating that each contractor or material supplier identified in the draw request has been paid or will be paid in full (or for so much as is then due and payable to such Person) upon such disbursement, and
(C) certifying that all funds previously disbursed from the CAPEX Reserve Account have been applied by Borrower toward the Renovation Costs for which they were disbursed and the funds being requested will be applied to pay or reimburse for
materials or work permitted hereunder and done in accordance herewith. Upon Lender’s approval of the foregoing submissions by Borrower, which approval shall not be unreasonably withheld or delayed, Lender shall disburse funds from the CAPEX
Reserve Account to pay or reimburse the Renovation Costs described in such submissions (subject to retainage of 10% as described in the construction draw request form attached hereto as Exhibit H). Notwithstanding anything to the contrary set
forth herein, Lender, in its reasonable discretion, may require, at Borrower’s expense, in connection with the final request for disbursement of funds from the CAPEX Reserve Account, (x) a title search for the Property indicating that the
Property is free from all Liens, claims and encumbrances other than Permitted Encumbrances, (y) an inspection of the Property by Lender or an Independent Architect, and (z) a copy of a certificate of completion from an Independent
Architect. Promptly following satisfaction of all requirements for the final disbursement of funds from the CAPEX Reserve Account as set forth above and after payment of all costs of the Renovation Project, all remaining funds in the CAPEX Reserve
Account shall be transferred by Lender to the Excess Cash Reserve Account and shall be held in the Excess Cash Reserve Account pursuant to Section 16.7 of this Agreement, and Lender shall acknowledge that the Completion Guaranty is
satisfied and released.” 
 9. Excess Cash Reserve Account. The following new Section 16.7 is
added at the end of Article XVI of the Loan Agreement: 
 “Section 16.7 Excess Cash Reserve Account. Provided
that no Event of Default has occurred and is then continuing, on each Payment Date in accordance with Section 3.1.5 and 3.1.6 of this Agreement, Lender shall deposit, or cause to be deposited, all Excess Cash Flow for such month
into an account maintained by 

  
 13 

 
Lender (the “Excess Cash Reserve Account”). All amounts deposited into and held in the Excess Cash Reserve Account pursuant to this Section 16.7 shall
hereinafter be referred to as the “Excess Cash Reserve Funds”. Funds held in the Excess Cash Reserve Account shall be held by Lender as additional collateral to secure the payment of the Indebtedness and Borrower shall have
no right to receive disbursements of or otherwise make use of any such Excess Cash Reserve Funds. Notwithstanding anything to the contrary set forth herein, Lender may, but shall have no obligation to, disburse funds from the Excess Cash Reserve
Account from time to time, in Lender’s sole discretion, to (i) prepay the Principal Amount of the Loan or (ii) pay any costs and expenses related to the Property or the Loan, all as may be determined in Lender’s sole discretion.
If Borrower exercises the Fifth Extension Option, then upon Borrower’s written request and provided that no Event of Default shall have occurred and is then continuing, Lender shall disburse the then-current balance of the Excess Cash Reserve
Funds in accordance with Section 5(c) of the Note.” 
 10. Exculpation.
(a) Section 18.1.2 of the Loan Agreement is hereby amended by adding the following to the end thereof: 

“(m) any loss, damage, cost or expense incurred by or on behalf of Lender by reason of the failure of New Borrower or New Operating
Lessee to qualify to do business in the State of Arizona as of the execution and delivery of the Assumption Agreement (provided that, upon delivery to Lender of certificates from the Secretary of State of Arizona evidencing that New Borrower and New
Operating Lessee are qualified to do business in Arizona, the parties shall have no further obligation under this paragraph (m). 
 18.1.2.1. Notwithstanding anything to the contrary in this Agreement, the Note or any of the Loan Documents, the Obligations shall be fully recourse to Borrower, and Lender’s waiver of its right to
assert personal liability for the Obligations against the Exculpated Parties as set forth in Section 18.1.1 of this Agreement shall be deemed inoperative and of no force or effect, upon any breach by Borrower, Guarantor, or their
respective Affiliates of the covenants set forth in Section 5.4 of this Agreement.” 
 (b) Guarantor hereby
acknowledges and agrees that the Guaranteed Obligations under the Recourse Guaranty shall include the obligations set forth in Section 18.1.2.1 of the Loan Agreement. 

11. Recitals; Status and Effect of Loan Documents. Each Borrower Party acknowledges, confirms, and agrees as to itself only
and to the extent applicable to such Borrower Party, that the matters as to Borrower, Operating Lessee and Guarantor stated in the Recitals set forth above are true and accurate in all respects, are a material part of this Agreement, are hereby
incorporated by reference, and may be relied upon for all purposes by the parties and that as of the date hereof: 

  
 14 

 (a) The Loan Documents have been duly authorized, executed, and delivered to Lender, remain
in full force and effect as originally written or as modified herein or as previously modified by mutual written agreement of the parties, and are valid, binding and enforceable against each Borrower Party, to the extent applicable to such Borrower
Party, in accordance with their respective terms, subject only to applicable bankruptcy, insolvency and similar laws affecting rights of creditors generally, and subject as to enforceability, to general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law). 
 (b) All liens and security interests created in favor of Lender
under the Loan Documents have been validly created and duly perfected as encumbrances upon all property and collateral of Borrower in first or other priority expressly represented by the Borrower or other Person in the Loan Documents. 

(c) All indebtedness created under the Loan Documents is, as of the date hereof, validly and unconditionally owing in full to Lender, in
accordance with the terms thereof, as modified hereby, without any defense or offset whatsoever, and Borrower Parties have no defenses, claims, counterclaims, or other rights that could be asserted to impair, delay, or adversely affect Lender’s
receipt of full payment and performance of all obligations owed to Lender by Borrower Parties with respect to the Loan. 
 12.
Warranties and Representations. 
 (a) Each Borrower Party unconditionally and irrevocably ratifies, remakes and
confirms as to itself only, all warranties and representations previously made by it in the respective Loan Documents to which it is a party, as of the date hereof, except (x) to the extent, if any, that the provisions of this Agreement reflect
variances from such existing warranties and representations with respect to facts and circumstances existing on the date hereof, (y) to the extent that such warranties and representations expressly relate to a specified earlier date, in which
event such warranties and representations are remade as of such earlier date, and (z) as follows: 
 (i) The warranty and
representation set forth in Section 4.1.42 of the Loan Agreement is hereby amended by deleting “Scott Dalecio, Claude Brock, Eric Resnick and Peter McDermott” and inserting “Tom Healy and Cory Warning” in place thereof.

 (ii) The warranties and representations in Sections 4.1.1, 4.1.2 and 4.1.3 of the Loan Agreement are not remade as of the
date of this Agreement by any Borrower Party. 
 (b) Borrower Parties further warrant and represent to Lender that: 

(i) Each Borrower Party (other than a Borrower Party who is an individual) is duly organized, validly existing, and in good standing
under the laws of its state of organization and is duly qualified as a foreign entity and is currently in good standing in each state in which such qualification is required for the conduct of its business as it is currently being conducted
(including, as applicable, the state where the Property is located). 

  
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 (ii) Each Borrower Party that is not an individual has full authority and due capacity to
execute, deliver, and perform this Agreement and all documents, instruments and agreements executed in connection herewith to which it is a party. Such execution, delivery, and performance has been duly authorized as required under such Borrower
Party’s organizational documents (if any) or under applicable law, and the individuals and entities executing this Agreement on such Borrower Party’s behalf have been duly authorized and empowered to bind such Borrower Party by such
execution. 
 (iii) This Agreement has been duly executed and delivered to Lender by each Borrower Party and is valid, binding,
and enforceable against each of them in accordance with its terms, subject only to applicable bankruptcy, insolvency and similar laws affecting rights of creditors generally, and subject as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law). 
 (iv) Neither the execution and delivery of
this Agreement nor the performance of its terms and compliance with its conditions will conflict with or result in a breach of any of the terms, conditions or provisions of or constitute a violation or default under any organizational document of
such Borrower Party or any contract, agreement, or to the knowledge of each Borrower Party, applicable law, regulation, judgment, writ, order or decree to which such Borrower Party or the Property is subject. 

(v) All documents and information furnished by any Borrower Party to Lender with respect to the Loan in connection with this Agreement
are complete and accurate in all material respects, and none contains any misrepresentation or misstatement of a material fact or omits to state a material fact. 
 (vi) To the Best of Borrower’s Knowledge, no Event of Default has occurred and is continuing under any Loan Document. 
 (vii) The organizational structure of Borrower, after the transactions contemplated by this Agreement and the Assumption Agreement, is accurately depicted by the schematic diagram attached hereto as
Exhibit I. 
 13. Ratification of Guarantor Obligations. 

(a) Guarantor hereby (i) ratifies the Guaranties and confirms that the Guaranties and all waivers, covenants and agreements therein
remain in full force and effect for the benefit of Lender, (ii) reaffirms its continuing liability for payment and/or performance of all obligations owed to Lender under the Guaranties, without any defense or offset whatsoever, to the same
extent as if the Guarantor had executed and delivered each Guaranty to Lender again on the date of this Agreement, and (iii) confirms that the Guaranties have not been modified or amended and that Guarantor’s liabilities under the
Guaranties have not been limited, impaired or affected in any manner by any existing or previous event, fact or circumstance. 

(b) Guarantor further acknowledges and agrees that (i) its execution of this Agreement is not required under the Guaranties or under
any other Loan Document, (ii) Guarantor would remain fully liable to Lender for all obligations owed under the Guaranties with respect to the Loan as modified by this Agreement whether or not the Guarantor executed this

  
 16 

 
Agreement or entered into any of the agreements herein, (iii) Lender has and shall continue to have the right, but shall not be obligated, to further modify any or all of the terms of the
Loan or the Loan Documents, extend the maturity of the Loan, obtain or release collateral or security for the Loan, pursue or forbear in the pursuit of remedies, and take any or all other actions Lender is authorized to take under the respective
Guaranties, this Agreement or any other Loan Document without giving notice to, obtaining any consent, approval or agreement from, or obtaining execution of any document by Guarantor, (iv) the fact that Lender requested Guarantor’s
execution of this Agreement does not constitute or establish any course of conduct or course of dealing that modifies any provision of any Guaranty or affect Guarantor’s liability thereunder in any manner, and (v) Lender shall have the
full benefit of this Agreement and the Guaranties without any obligation to obtain any future ratification, reaffirmation, consent, waiver or other agreement from Guarantor. 
 (c) Commencing on the date of this Agreement and continuing until the Fourth Extended Maturity Date (as the same may be extended pursuant to the Fifth Extension Option), Guarantor shall deliver to Lender,
annually within one hundred twenty (120) days after the end of each Fiscal Year, audited financial statements with respect to Guarantor’s financial performance and condition, which financial statements shall be in accordance with the
requirements of Section 11.2.3 of the Loan Agreement. 
 14. Modifications to Loan Documents. The
parties agree that the Loan Documents are hereby modified in all respects necessary to give effect to the provisions of this Agreement, and only in such respects, and the provisions of this Agreement shall control over any contrary or inconsistent
provisions of any other Loan Document. In all other respects all Loan Documents shall remain in full force and effect and unmodified. All of Lender’s liens, security interests, priorities, rights, and remedies under the Loan Documents shall
continue in full force and effect as security for the Loan following the modification thereof by this Agreement. All references in any Loan Document to any other Loan Document shall hereafter be construed to refer to such other Loan Document as
modified by this Agreement. For all purposes of all Loan Documents, this Agreement shall be included within the definition of the term “Loan Documents.” 

15. Releases and Indemnifications. The Borrower Parties and their respective past, present and future partners,
shareholders, members, managers, officers, directors, employees, agents, attorneys, representatives, successors, assigns, subsidiaries, affiliates, parents, direct and indirect equity holders, owners, and predecessors in interest and all persons or
entities claiming by, through, or under any of them (and their respective successors and assigns the “Borrower Releasing Parties”) hereby: 
 (a) acknowledge, agree and affirm that, as of the date hereof, none of them possesses any claims, defenses, offsets, rights of recoupment or counterclaims of any kind or nature against or with respect to
the enforcement or administration of the Loan or the Loan Documents (including any aspect of the origination, administration or enforcement thereof) or any knowledge of any facts or circumstances that might give rise to or be the basis of any such
claims, defenses, offsets, rights of recoupment or counterclaims; 
 (b) remise, release, acquit and forever discharge
(i) each Lender, and its predecessors in interest, affiliates, subsidiaries, participants or assigns, and all of their respective 

  
 17 

 
past, present, and future shareholders, members, directors, managers, officers, employees, attorneys, advisers, consultants, servicers, representatives or agents and (ii) Original Lender and
its affiliates, subsidiaries, participants or assigns, and all of their respective past, present, and future shareholders, members, directors, managers, officers, employees, attorneys, advisers, consultants, servicers, representatives or agents
(collectively, the “Lender Released Parties”) from any and all manner of debts, accounts, bonds, warranties, representations, covenants, promises, contracts, controversies, agreements, liabilities, obligations, expenses,
damages, judgments, executions, actions, claims, demands and causes of action of any nature whatsoever, whether at law or in equity, whether known or unknown, that any of Borrower Releasing Parties now have or may hereafter have by reason of any
act, omission, matter, cause or thing which has occurred or happened during the period from the beginning of the world to and including the date this Agreement is executed and delivered by all parties hereto, solely with respect to matters arising
out of or relating to the Loan and the Loan Documents, including the origination, funding, servicing or administration thereof and any other agreement or transaction between any of the Borrower Releasing Parties and any of the Lender Released
Parties concerning the Loan, except as such may have been caused by the gross negligence or willful misconduct of one or more Lender Released Parties (all of the foregoing released claims are sometimes referred to as the “Borrower Party
Released Claims”), provided, however, that nothing herein shall be deemed to release Lender from any of its obligations under this Agreement; 
 (c) acknowledge that, subsequent to the execution of this Agreement, they may discover Borrower Party Released Claims that are now unknown to or unanticipated by them, including unknown or unanticipated
Borrower Party Released Claims that arise from, are based upon, or relate to one or more of the statements (in the recitals or other provisions of this Agreement) concerning the subject matter of this Agreement that the parties have agreed upon or
acknowledged as accurate herein, the existence of which Borrower Party Released Claims, if known to a Borrower Party at the execution of this Agreement, may have materially affected its decision to execute this Agreement. Borrower Parties
acknowledge that they are assuming the risk that such unknown or unanticipated Borrower Party Released Claims exist, and agree that the releases granted by Borrower Parties and the agreements concerning indemnification of the Lender Released Parties
made by Borrower Parties in this Agreement shall apply to and are effective with respect to all such Borrower Party Released Claims. Borrower Parties expressly waive the benefits of any state, federal, or other law providing that a general release
does not extend to claims that a releasing party does not know or suspect to exist in its favor when the releasing party executes the release, and that if known by the releasing party must or may have materially affected the releasing party’s
settlement with the released party; 
 (d) agree, jointly and severally, to indemnify and save harmless the Lender Released
Parties from and against all liability, loss, cost, expense, or damage, including reasonable attorneys’ and other professional fees and litigation expenses, suffered or incurred by any Lender Released Party with respect to the assertion by any
Borrower Releasing Parties after the date of this Agreement against a Lender Released Party of any Borrower Party Released Claim; 
 (e) acknowledge that Lender is specifically relying upon the Borrower Parties’ acknowledgments and agreements in this Section 15 in executing this Agreement, and

  
 18 

 
that in the absence of such agreements Lender would be unwilling to agree to the advances provided for in this Agreement; and 

(f) agree that all releases and discharges by any of the Borrower Releasing Parties in this Agreement shall have the same effect as if
each released or discharged matter had been the subject of a legal proceeding, adjudicated to final judgment from which no appeal could be taken and therein dismissed with prejudice. 

16. Waiver of Automatic Stay; Supplemental Stay. The Borrower Parties unconditionally and irrevocably acknowledge and agree
that: 
 (a) if any bankruptcy proceeding is commenced by or against any Borrower Party, Borrower is a “single asset real
estate entity” and “cause” for termination of the automatic stay exists and Lender shall be entitled, subject to the approval of a court of competent jurisdiction, to the immediate entry of an order granting Lender relief from the
automatic stay imposed by Section 362 of the United States Bankruptcy Code (the “Bankruptcy Code”). Borrower Parties consent to the entry of such order and Borrower Parties agree that in no event will they object
to or oppose Lender’s motion seeking relief from the automatic stay. Borrower Parties further agree that upon Lender’s request from time to time they shall execute and file all documents and take all other actions Lender may deem necessary
or appropriate to enable Lender to obtain stay relief and exercise all of its rights and remedies for collection and enforcement of the Loan. 
 (b) Borrower Parties shall not seek or request any other party to seek a supplemental stay or any other relief, whether injunctive or otherwise, under Section 105 or any other provision of the
Bankruptcy Code, to stay, interdict, condition, reduce or inhibit the ability of Lender to enforce any rights it has, under the Loan Documents or otherwise, against any Borrower Party or against the Property. 

(c) Lender, as a material inducement to enter into this Agreement, has specifically bargained for the concessions set forth in this
Section 16 and that this Agreement may be deemed conclusive evidence as to such negotiated ongoing intention of the Parties and that it is intended to be the primary element in determining if cause exists for granting such concessions.

 17. Additional Documents; Further Assurances. Each party to this Agreement shall at any time, and from time to
time, upon the written request of any other party to this Agreement, sign and deliver such further documents and do such further acts and things as the other party may reasonably request to effect the purposes of this Agreement. 

18. Time is of the Essence. Time is of the essence with respect to all agreements and obligations of the parties to this
Agreement contained herein. 
 19. Entire Agreement; Written Modifications Only. This Agreement, the exhibits
attached hereto, and the Loan Documents constitute the sole and entire agreement between the parties with respect to the subject matter hereof, and there are no other covenants, promises, agreements or understandings regarding the same. This
Agreement, including the provisions of 

  
 19 

 
this Section 19, may not be modified except by written amendment to this Agreement signed by the parties affected by the same. 

20. No Third-Party Beneficiaries. This Agreement is solely for the benefit of the parties hereto and no persons other than
the undersigned and the Released Parties shall be entitled to claim or receive any benefit by reason of this Agreement. 
 21.
Due Diligence Performed; Parties Fully Informed; No Right to Rely. Each Borrower Party hereby warrants, represents and agrees that it has, by itself and with the assistance of counsel (or, if without the assistance of counsel, such
party having of its own volition chosen not to seek such assistance), performed any and all due diligence and investigation it deems necessary or desirable in connection with making a fully informed decision to enter into and sign this Agreement.
Borrower Parties are relying on their own investigations and their own decision-making processes in determining to sign this Agreement, are not relying on the representations or omissions of each other or of Lender in so doing, and fully understand
the terms and provisions of this Agreement and of the documents contemplated hereby. 
 22. Severability. If any
one or more of the provisions of this Agreement are deemed unenforceable, the remainder of this Agreement shall, at the sole option of Lender, remain enforceable in accordance with its original terms to the fullest extent possible. 

23. Delay Not a Waiver. Neither the failure nor any delay on the part of Lender to exercise any right, power or privilege
under this Agreement or under any document executed in connection herewith shall operate as a waiver of such right, power or privilege and any single or partial exercise of any such right, power or privilege shall not preclude any other or further
exercise thereof. 
 24. Successors and Assigns. This Agreement shall be binding on and shall inure to the benefit
of each party’s permitted successors and assigns. 
 25. Construction of Provisions. The following rules of
construction are applicable for the purposes of this Agreement and all documents and instruments supplemental hereto unless the context clearly requires otherwise: 
 (a) All references herein to numbered sections or to lettered exhibits are references to the sections hereof and the exhibits annexed hereto. 

(b) The terms “include,” “including,” and similar terms shall be construed as if followed by the phrase “without
being limited to” or the phrase “without limitation,” as the context may require. 
 (c) Words of masculine,
feminine or neutral gender shall mean and include the correlative words of the other genders, and words importing the singular number shall mean and include the plural, and vice versa. 

(d) No inference in favor of or against any party hereto shall be drawn from the fact that such party has drafted any portion of this
Agreement or any other Loan Document. 

  
 20 

 (e) All references to the Loan shall be deemed to include all existing or future
modifications, amendments, extensions, restatements, or replacements of the Loan made by mutual written agreement of the parties. 
 (f) The terms “person” and “party” shall mean any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated organization,
association, corporation, institution, entity or government (whether federal, state, county, city, municipal or otherwise, including an instrumentality, division, agency, body or department thereof). 

26. Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed an original
and all of which together shall constitute one and the same document, binding upon all the parties hereto notwithstanding that all such parties are not signatories to the same counterpart. This Agreement shall become effective when all parties
hereto have executed a counterpart hereof. A signature of a party by facsimile or other electronic transmission shall be deemed to constitute an original and fully effective signature of such party. 

27. Governing Law; Jurisdiction. The provisions of Section 19.3 of the Loan Agreement are incorporated herein by
reference. 
 28. Costs and Expenses. Without limiting any other provision of this Agreement or any other Loan
Document relating to payment of expenses, Borrower shall, pay or reimburse Lender on the date of this Agreement and, thereafter, promptly after written demand, all fees, costs and expenses actually incurred by Lender and its loan servicers,
attorneys, Rating Agencies, advisors and consultants in connection with this Amendment, including, without limitation, recording fees, title insurance premiums and other title charges (collectively the “Costs and Expenses”).

 [Remainder of Page Intentionally Left Blank] 

  
 21 

 IN WITNESS WHEREOF, the parties hereto have caused this Restructuring Agreement to be
duly executed by their duly authorized representatives, all as of the day and year first above written. 
  

							
	BORROWER:	 		 	SHR SCOTTSDALE, L.L.C. a Delaware limited liability company
				
		 		 	By:	 	 /s/ Robert T. McAllister

		 		 	Name: Robert T. McAllister
		 		 	Title: Senior Vice President, Tax
			
	GUARANTOR:	 		 	STRATEGIC HOTEL FUNDING, L.L.C., a Delaware limited liability company
				
		 		 	By:	 	 /s/ Robert T. McAllister

		 		 	Name: Robert T. McAllister
		 		 	Title: Senior Vice President, Tax
			
	OPERATING LESSEE:	 		 	DTRS SCOTTSDALE, L.L.C., a Delaware limited liability company
				
		 		 	By:	 	 /s/ Robert T. McAllister

		 		 	Name: Robert T. McAllister
		 		 	Title: Senior Vice President, Tax

							
			
	LENDER:	 		 	BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE REGISTERED HOLDERS OF THE CITIGROUP COMMERCIAL
MORTGAGE TRUST 2007-FL3 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3
				
		 		 	By:	 	KeyCorp Real Estate Capital Markets, Inc. as Special Servicer
				
		 		 	By:	 	 /s/ C. Meade Hubby

		 		 		 	Name: C. Meade Hubby
		 		 		 	Title: Vice President, Special Servicing

 EXHIBIT A 

INTENTIONALLY DELETED 

 EXHIBIT B 

PRELIMINARY PROJECT BUDGET FOR RENOVATION PROJECT 

 Ballroom Addition 

Fairmont Scottsdale 

Preliminary Development Budget 
 REVISED June 3, 2011 
 SUMMARY 

 

																					
	Item	  	Quantity	 	 	U/M	 	  	Cost	 	  	Extension	 	  	Remarks	 
						
	 Construction + FF&E
	  				 				  				  				  			
						
	 Ballroom Addition
	  	 	1	  	 	 	ea	  	  	$	17,543,158.77	  	  	$	17,543,158.77	  	  			
						
	 Sub-total
	  				 				  				  	$	17,543,158.77	  	  			
						
	 Construction + FF&E Total
	  				 				  				  	$	17,543,158.77	  	  			
						
	 OSE
	  				 				  				  				  			
						
	 China, glass, silver, smallwares
	  	 	1	  	 	 	ls	  	  	$	175,000.00	  	  	$	175,000.00	  	  			
						
	 Sub-total
	  				 				  				  	$	175,000.00	  	  			
						
	 OSE Total
	  				 				  				  	$	175,000.00	  	  			
						
	 Fees & Miscellaneous
	  				 				  				  				  			
						
	 Fees
	  				 				  				  				  			
	 Architecture
	  	 	1	  	 	 	ea	  	  	$	608,190.00	  	  	$	608,190.00	  	  			
	 Structural
	  	 	1	  	 	 	ea	  	  	$	77,600.00	  	  	$	77,600.00	  	  			
	 Civil
	  	 	1	  	 	 	ea	  	  	$	95,545.00	  	  	$	95,545.00	  	  			
	 MEP
	  	 	1	  	 	 	ea	  	  	$	131,920.00	  	  	$	131,920.00	  	  			
	 Parking
	  	 	1	  	 	 	ea	  	  	$	18,430.00	  	  	$	18,430.00	  	  			
	 Landscape
	  	 	1	  	 	 	ea	  	  	$	36,860.00	  	  	$	36,860.00	  	  			
	 Kitchen
	  	 	1	  	 	 	ea	  	  	$	29,100.00	  	  	$	29,100.00	  	  			
	 Lighting
	  	 	1	  	 	 	ea	  	  	$	28,130.00	  	  	$	28,130.00	  	  			
	 Interior Design
	  	 	1	  	 	 	ea	  	  	$	   —	  	  	$	  —	  	  			
	 Acoustic Consultant
	  	 	1	  	 	 	allow	  	  	$	5,000.00	  	  	$	5,000.00	  	  			
	 Soils Consultant
	  	 	1	  	 	 	allow	  	  	$	4,000.00	  	  	$	4,000.00	  	  			
	 A/V Consultant
	  	 	1	  	 	 	allow	  	  	$	32,495.00	  	  	$	32,495.00	  	  			
	 FF&E Purchasing Agent
	  	 	1	  	 	 	allow	  	  	$	25,000.00	  	  	$	25,000.00	  	  			
	 Project Manager
	  	 	1	  	 	 	allow	  	  	$	400,000.00	  	  	$	400,000.00	  	  			
	 Consultant Reimbursables
	  	 	8	% 	 				  				  	$	119,381.60	  	  			
						
	 Miscellaneous
	  				 				  				  				  			
						
	 Site Signage
	  	 	1	  	 	 	allow	  	  	$	50,000.00	  	  	$	50,000.00	  	  			
	 Permits
	  	 	1	  	 	 	allow	  	  	$	75,000.00	  	  	$	75,000.00	  	  			
						
	 Fees & Miscellaneous Total
	  				 				  				  	$	1,736,651.60	  	  			
						
	 Project Sub-Total
	  				 				  				  	$	19,454,810.37	  	  			
	 Capitalized Interest
	  				 				  				  	$	  —	  	  			
						
	 PROJECT TOTAL
	  				 				  				  	$	19,454,810.37	  	  			

 Ballroom Addition 

Fairmont Scottsdale 

Preliminary Development Budget 
 REVISED June 3, 2011 
 DETAIL 

 

																					
	Item	  	Quantity	 	  	U/M	 	  	Cost	 	  	Extension	 	  	Remarks	 
						
	 General Construction
	  				  				  				  				  			
						
	 General construction estimate
	  				  				  				  				  			
	 General Construction (building)
	  	 	57,261	  	  	 	sft	  	  	$	194.63	  	  	$	11,144,422.13	  	  			
	 Site (landscaped)
	  	 	57,261	  	  	 	sft	  	  	$	20.00	  	  	$	1,145,220.00	  	  			
	 General Conditions
	  	 	1	  	  	 	ls	  	  	$	1,033,606.14	  	  	$	1,033,606.14	  	  			
	 Bonds, Insurance, Data Management
	  	 	1	  	  	 	ls	  	  	$	328,788.50	  	  	$	328,788.50	  	  			
	 Taxes, Overhead & Fee
	  	 	1	  	  	 	ls	  	  	$	1,669,672.00	  	  	$	1,669,672.00	  	  			
						
	 Sub-total
	  				  				  				  	$	15,321,708.77	  	  			
						
	 General Construction Total
	  				  				  				  	$	15,321,708.77	  	  			
						
	 Interior Finishes (CFCI)
	  				  				  				  				  			
						
	 Sub-total
	  				  				  				  	$	—  	  	  			
						
	 CFCI total
	  				  				  				  	$	—  	  	  			
						
	 Interior Finishes (OFCI)
	  				  				  				  				  			
						
	 Carpet
	  	 	5,500	  	  	 	syd	  	  	$	34.00	  	  	$	187,000.00	  	  			
	 Carpet pad
	  	 	5,500	  	  	 	syd	  	  	$	4.50	  	  	$	24,750.00	  	  			
	 Vinyl wall covering
	  	 	3,000	  	  	 	lyd	  	  	$	10.00	  	  	$	30,000.00	  	  			
						
	 Sub-total
	  				  				  				  	$	241,750.00	  	  			
						
	 OFCI total
	  				  				  				  	$	241,750.00	  	  			
						
	 FF&E/ Loose Furnishings
	  				  				  				  				  			
						
	 Seating
	  				  				  				  				  			
	 Banquet chairs
	  	 	2000	  	  	 	ea	  	  	$	115.00	  	  	$	230,000.00	  	  			
	 Banquet tables
	  	 	1	  	  	 	ls	  	  	$	35,000.00	  	  	$	35,000.00	  	  			
	 Prefunction seating
	  	 	1	  	  	 	ls	  	  	$	40,000.00	  	  	$	40,000.00	  	  			
						
	 Casegoods & Tables
	  				  				  				  				  			
	 Prefunction tables
	  	 	1	  	  	 	ls	  	  	$	50,000.00	  	  	$	50,000.00	  	  			
						
	 Drapery & Soft Goods
	  				  				  				  				  			
	 Window treatment
	  	 	1	  	  	 	ls	  	  	$	60,000.00	  	  	$	60,000.00	  	  			
						
	 Decorative Lighting
	  				  				  				  				  			
	 Ballroom pendants
	  	 	1	  	  	 	allow	  	  	$	350,000.00	  	  	$	350,000.00	  	  			
	 Ballroom sconces
	  	 	30	  	  	 	ea	  	  	$	1,350.00	  	  	$	40,500.00	  	  			
	 Prefunction lighting
	  	 	1	  	  	 	ls	  	  	$	85,000.00	  	  	$	85,000.00	  	  			
	 Bathroom sconces
	  	 	24	  	  	 	ea	  	  	$	550.00	  	  	$	13,200.00	  	  			
						
	 Art, Mirrors & Accessories
	  				  				  				  				  			
	 Art & Accessories
	  	 	1	  	  	 	ls	  	  	$	75,000.00	  	  	$	75,000.00	  	  			
	 Portable stage
	  	 	6	  	  	 	ea	  	  	$	8,500.00	  	  	$	51,000.00	  	  			
						
	 Sub-total
	  				  				  				  	$	1,029,700.00	  	  			
						
	 FF&E/ Loose Furnishings Total
	  				  				  				  	$	1,029,700.00	  	  			

 Ballroom Addition 

Fairmont Scottsdale 

Preliminary Development Budget 
 REVISED June 3, 2011 
 DETAIL 

 

																					
	 Specialties & Miscellaneous
	  				  				  				  				  			
						
	 Kitchen equipment
	  	 	1	  	  	 	ls	  	  	$	650,000.00	  	  	$	650,000.00	  	  			
	 A/V
	  	 	1	  	  	 	ls	  	  	$	300,000.00	  	  	$	300,000.00	  	  			
	 Interior signage
	  	 	1	  	  	 	ls	  	  	$	35,000.00	  	  	$	35,000.00	  	  			
						
	 Sub-total
	  				  				  				  	$	950,000.00	  	  			
						
	 Specialties total
	  				  				  				  	$	950,000.00	  	  			
		  				  				  				  	 	 	 	  			
						
	 Categories Total
	  				  				  				  	$	17,543,158.77	  	  			
						
	 Tax
	  				  				  				  	$	—  	  	  	 	FF&E exempt in AZ	  
						
	 Total
	  				  				  				  	$	17,543,158.77	  	  			

 EXHIBIT C 

TIMELINE FOR RENOVATION PROJECT 

	
	

 EXHIBIT D 

AMENDMENT TO MANAGEMENT AGREEMENT 

 FAIRMONT HOTELS & RESORTS (U.S.), INC. 

June 9, 2011 
 DTRS Scottsdale, L.L.C.

 c/o Strategic Hotels & Resorts, Inc. 
 200 West Madison Street 
 Suite 1700 
 Chicago, Illinois 60606 
 Ladies and Gentlemen: 

 

	RE:	Hotel Management Agreement for the Fairmont Scottsdale dated as of September 1, 2006 between DTRS Scottsdale, L.L.C. and Fairmont Hotels & Resorts
(U.S.) Inc., as amended by a First Amendment to Hotel Management Agreement made as of                     , 2007 [sic] a Second Amendment to
Hotel Management Agreement made as of January 1, 2010, and a letter agreement dated June 9, 2011 (the Hotel Management Agreement as amended, hereinafter referred to as the “Scottsdale HMA”) 

This letter agreement shall serve to amend the Scottsdale HMA. This letter agreement shall not be construed to amend, modify or supplement the Scottsdale
HMA other than with respect to the understandings expressly set forth herein. Capitalized terms used in this letter agreement and not otherwise defined herein shall have the meanings given such terms in the Scottsdale HMA. 

Operator and Owner agree as follows: 
  

	1.	Recital Paragraph A of the Scottsdale HMA is hereby deleted and the following substituted therefor: 

 

	 	A.	SHR Scottsdale, L.L.C., a Delaware limited liability company, is the fee owner of the Hotel (“Fee Owner”). Fee Owner has leased the Hotel to Owner.

  

	2.	Subject to paragraphs 3 and 4 below, the Basic Fee to be paid to the Operator under the Scottsdale HMA for the Fiscal Year commencing on January 1, 2012 (the
“Reduction Date”), and for each Fiscal Year thereafter, shall be reduced from 5% to 3% of Total Revenues of the Hotel for such Fiscal Year, provided that each of the following conditions (the “Reduction Conditions”) shall have
been satisfied: 

  

	 	a)	Operator shall have previously approved, which approval shall not be unreasonably withheld, delayed, or conditioned, the Owner’s plans for the construction at the
Hotel of approximately 60,000 square feet of new meeting space (“New Meeting Space”) as being, in accordance with the HMA, of quality consistent with the Standard and the basic architectural and design characteristics of the Hotel and that
the construction thereof should minimize disruptions and interference with Hotel Operations; and 

  

	 	b)	 Owner shall have secured all required building permits for the commencement and conduct to completion of the New Meeting Space and work shall have
commenced with at least the foundations poured and some commencement of vertical construction, 

 DTRS Scottsdale, L.L.C. 
 June 9, 2011 
 Page 2 

 

 provided, however, that if for any reason construction of the New Meeting Space ceases
for 60 consecutive days in any 90-day period, or Owner otherwise fails diligently to conduct construction activities in pursuit of the completion of the entire New Meeting Space, the Basic Fee percentage shall revert to the applicable percentage set
forth above until such diligent construction recommences. 
  

	3.	In the event that the New Meeting Space is not completed in accordance with the plans above approved, and furnished and available for the permanent and uninterrupted
use of the Hotel on or before March 31, 2013, then from and after such date the Basic Fee payable under the Scottsdale HMA shall revert to 5% of Total Revenues for the period from such date until the last day of the month in which the New
Meeting Space is completed in accordance with the plans above approved, and furnished and available for the permanent and uninterrupted use of the Hotel. 

  

	4.	In the event that the New Meeting Space is not completed in accordance with the plans above approved, and furnished and available for the permanent and uninterrupted
use of the Hotel on or before the third anniversary of the Reduction Date, the difference in Basic Fees from the Reduction Date calculated at 3% of Total Revenues rather than 5% of Total Revenues shall be immediately payable by Owner to Operator.

  

	5.	 On the Reduction Date and whether or not the Reductions Conditions have been satisfied, the Incentive Fee Threshold shall be permanently reduced to the
sum of (a) $15,000,000 plus (b) an amount equal to 10% of any capital (“Additional Capital”) that either or both of Owner or Fee Owner has contributed to pay for Capital Expenditures from and after the Reduction Date (or from and
after the date hereof if contributions for Capital Expenditures would constitute Additional Capital in the Fiscal Year 2011) beyond amounts expended from the Replacement Reserve on account of Capital Improvements to the Hotel required or permitted
under this Agreement (and, for avoidance of doubt, the Incentive Fee Threshold shall be increased by 10% of all Additional Capital incurred pursuant to this letter agreement for the New Meeting Space, but not for any expenditures incurred in
connection with the conversion or development of any portion of the Hotel Facilities to a use which is not part of the Hotel or Hotel Related Facilities). The parties agree that with respect to Additional Capital funded by Owner or Fee Owner, such
amount described in subsection (b) above shall be calculated as follows: the Incentive Fee Threshold shall be increased by an amount equal to (A)(i) 10% of the amount of any Additional Capital fundings on account of each Capital Improvement as
of the first day of the calendar quarter following the completion of such Capital Improvement project (i.e. the date that a certificate of occupancy or its equivalent has been issued to evidence such completion or the Capital Improvements are
otherwise put into full service at the Hotel) multiplied by (ii) (x) .75 for the calculation as of the first day of the 2nd calendar quarter, (y) .50 for the calculation as of the first day of the 3rd calendar quarter and (z) .25 for the calculation as of the
first day of the 4th calendar quarter; and (B) as of
the commencement of each Fiscal Year, by 10% of the full amount of such Additional Capital fundings on account of completed Capital Improvement projects during the immediately preceding Fiscal Year. 

 

	6.	In the event the Basic Fee shall be subject to reduction as prescribed by paragraphs 2 through 4 above, but is also subject to reduction in accordance with subsections
9.1 (A) or (B) of the Scottsdale HMA for a Rooms Addition Project, the above paragraphs and such subsections may operate independent of each other but there will be no further reduction of the Basic Fee on account of the application of
both sets of provisions at the same time (i.e. between the New Meeting Space provisions and Rooms Addition Project provisions, whichever then provide for the lower percentage of Basic Fee payable will apply, without double counting).

 DTRS Scottsdale, L.L.C. 
 June 9, 2011 
 Page 3 

 

	7.	Owner will cause the transfer of the Residential Expansion Parcel, as such is defined in a Residential Expansion Parcel Agreement between Scottsdale Princess
Partnership (“SPP”) and SHR Scottsdale Z, LLC as of September 1, 2006 and recorded in the real estate records of Maricopa County, Arizona on September 9, 2006 as Document No. 20061183793 (the “REP Agreement”), to Fee
Owner or the same entity which shall, at such time, own the Lands (the “REP Transfer”). Fee Owner, Owner, Operator, and Scottsdale Princess Partnership, agree that: 

 

	 	a)	there shall be deemed to be excluded from the Residential Expansion Parcel for all intents and purposes under the REP Agreement that portion of the Residential
Expansion Parcel to be used for parking or other ancillary uses in connection with the New Meeting Space (the “New Meeting Space Portion”); and 

  

	 	b)	the REP Transfer is not a sale of such Residential Expansion Parcel to which the provisions of section (1) of the REP Agreement providing for a remittance of net
profit from such transaction shall apply, and each of Operator and SPP confirms that such provisions shall not apply until there is a subsequent sale of the Residential Expansion Parcel to an independent third party unaffiliated with the then owner
of same; and 

  

	 	c)	the limitations set forth in Section (5)(a) of the REP Agreement shall not apply to the New Meeting Space Portion; and 

 

	 	d)	at any time after the completion of the New Meeting Space, each of Fee Owner and SPP shall, upon the request of the other, execute, deliver, and record an amendment to
the REP Agreement in the real estate records of Maricopa County, Arizona reflecting the changes to the REP Agreement set forth in this paragraph 7 of this letter agreement. 

 

	8.	The Scottsdale HMA is hereby amended to include the Residential Expansion Parcel (including the New Meeting Space Portion) within the definitions of Lands, and hence
Hotel Facilities, under the Scottsdale HMA 

 The terms and conditions of this letter agreement shall be binding upon the
successors and assigns of the Parties and of the additional parties acknowledging this letter agreement. 
 If this letter agreement accurately
sets forth our understandings, please execute this letter agreement in the space provided below and return one signed original to Operator’s attention. 
 [SIGNATURES ON FOLLOWING PAGE] 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 DTRS Scottsdale, L.L.C. 
 June 9, 2011 
 Page 4 

 

			
	 Very truly yours,

	
	 FAIRMONT HOTELS & RESORTS (U.S.) INC.,
 a Delaware corporation

		
	 By:
	 	 /s/ Iain R. Morton

	 Name:
	 	Iain R. Morton
	 Title:
	 	Senior Vice President
General Counsel, Americas Region
	
	AGREED AND ACCEPTED:
	
	 DTRS SCOTTSDALE, L.L.C.,
 a Delaware limited liability company

		
	 By:
	 	 /s/ Robert T. McAllister

	 Name:
	 	Robert T. McAllister
	 Title:
	 	Senior Vice President, Tax

 JOINDER: 

SHR Scottsdale, L.L.C., a Delaware limited liability company, and Scottsdale Princess Partnership, a general partnership formed under the laws of the
State of Arizona, hereby join this letter agreement for the sole purpose of binding themselves under the provisions of paragraph 7 of this letter agreement. 
  

											
	 SHR SCOTTSDALE, L.L.C.,
 a Delaware limited liability company
	 		 	 SCOTTSDALE PRINCESS PARTNERSHIP,
 an Arizona general partnership

					
	By:	 	 /s/ Robert T. McAllister
	 		 	By:	 	CP Hotels (Scottsdale 1) Inc., a Delaware corporation, general partner
	 Name:
	 	Robert T. McAllister	 		 		 
	 Title:
	 	Senior Vice President, Tax	 		 		 		 	
		 		 		 		 	By:	 	 /s/ Iain R. Morton

		 		 		 		 	Name:	 	Iain R. Morton
		 		 		 		 	Title:	 	 Senior Vice President

General Counsel, Americas Region

					
		 		 		 	By:	 	CP Hotels (Scottsdale 2) Inc., a Delaware corporation, general partner
						
		 		 		 		 	By:	 	 /s/ Iain R. Morton

		 		 		 		 	Name:	 	Iain R. Morton
		 		 		 		 	Title:	 	 Senior Vice President

General Counsel, Americas Region

 EXHIBIT E 

ASSUMPTION AGREEMENT 

 When Recorded Return To: 
 Kevin D. Bird 
 Polsinelli Shughart PC 
 700 W. 47th Street, Suite 1000 
 Kansas City, Missouri 64112 

Loan No. 10037091 
  

 
 (space above reserved for
Recorder’s use) 
 ASSUMPTION AGREEMENT 
 Dated June     , 2011 
 By and Among 

SHR SCOTTSDALE, L.L.C., a Delaware limited liability company 
 Original Borrower 
 FMT SCOTTSDALE OWNER, LLC, a Delaware limited liability
company 
 New Borrower 
 STRATEGIC HOTEL FUNDING, L.L.C., a Delaware limited liability company 
 Original
Guarantor 
 WALTON STREET REAL ESTATE FUND VI, L.P.; WALTON STREET REAL ESTATE 

FUND VI-Q, L.P.; WALTON STREET REAL ESTATE FUND VI-E, L.P.; WALTON 
 STREET REAL ESTATE INVESTORS VI, L.P.; WALTON STREET REAL ESTATE 
 PARTNERS VI,
L.P.; WALTON STREET REAL ESTATE PARTNERS VI-NGE, L.P.; and 
 WSC CAPITAL HOLDINGS VI, L.P., each a Delaware limited partnership

 collectively, New Guarantor 
 DTRS SCOTTSDALE, L.L.C., a Delaware limited liability company 
 Original
Operating Lessee 
 WALTON/SHR FPH, LLC, a Delaware limited liability company 

New Operating Lessee 
 And 
 BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO

 LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE REGISTERED 

HOLDERS OF THE CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3 
 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3 
 Lender

  
 1 

 ASSUMPTION AGREEMENT 

THIS ASSUMPTION AGREEMENT (“Agreement”) is made as of the
             day of June, 2011 (the “Effective Date”), by and among FMT SCOTTSDALE OWNER, LLC, a Delaware limited liability company, whose address is c/o
Strategic Hotels & Resorts, 200 W. Madison, Suite 1700, Chicago, Illinois 60606 (“New Borrower”); SHR SCOTTSDALE, L.L.C., a Delaware limited liability company, whose address is c/o Strategic Hotels &
Resorts, 200 W. Madison, Suite 1700, Chicago, Illinois 60606 (“Original Borrower”); BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE REGISTERED HOLDERS OF THE
CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3, whose address is c/o KeyCorp Real Estate Capital Markets, Inc., 11501 Outlook, Suite 300, Overland Park, Kansas 66211
(“Lender”); STRATEGIC HOTEL FUNDING, L.L.C., a Delaware limited liability company, whose address is c/o Strategic Hotels & Resorts, 200 W. Madison, Suite 1700, Chicago, Illinois 60606 (“Original
Guarantor”); WALTON STREET REAL ESTATE FUND VI, L.P., a Delaware limited partnership, WALTON STREET REAL ESTATE FUND VI-Q, L.P., a Delaware limited partnership, WALTON STREET REAL ESTATE FUND VI-E, L.P., a
Delaware limited partnership, WALTON STREET REAL ESTATE INVESTORS VI, L.P., a Delaware limited partnership, WALTON STREET REAL ESTATE PARTNERS VI, L.P., a Delaware limited partnership, WALTON STREET REAL ESTATE
PARTNERS VI-NGE, L.P., a Delaware limited partnership, and WSC CAPITAL HOLDINGS VI, L.P., a Delaware limited partnership, all having an address at c/o Walton Street Capital, L.L.C., 900 N. Michigan Avenue, Suite 1900,
Chicago, Illinois 60611 (individually and collectively, the “New Guarantor”); DTRS SCOTTSDALE, L.L.C., a Delaware limited liability company, whose address is c/o Strategic Hotels & Resorts, 200 W. Madison, Suite
1700, Chicago, Illinois 60606 (“Original Operating Lessee”); and WALTON/SHR FPH, LLC, a Delaware limited liability company, whose address is c/o Strategic Hotels & Resorts, 200 W. Madison, Suite 1700, Chicago,
Illinois 60606 (“New Operating Lessee”). New Borrower, Original Borrower, New Guarantor, Original Guarantor, New Operating Lessee and Original Operating Lessee are sometimes referred to collectively as the “Borrower
Parties,” and collectively, the Borrower Parties and Lender are the “Parties”. 
 RECITALS:

 A. Original Borrower borrowed from Citigroup Global Markets Realty Corp. (“Original Lender”), the
principal sum of $140,000,000.00 (the “Loan”) for the financing of certain property located in Maricopa County, Arizona, legally described on Exhibit A attached hereto and by this reference made a part hereof (such real
estate, together with all improvements thereon and personal property associated therewith, is hereinafter collectively called the “Property”). Lender is the current owner and holder of all right, title and interest in the Loan and
the Loan Documents (as hereinafter defined). 
 B. The Loan was made pursuant to that certain Loan and Security Agreement dated
September 1, 2006, as amended by that certain Amendment to Loan and Security Agreement dated May 9, 2007 (as amended, the “Loan Agreement”), and is evidenced by that certain Note dated September 1, 2006, as amended by
that certain Amendment to Promissory Note dated May 9, 2007 (as amended, the “Note”). 

  
 2 

 C. The Loan is further evidenced and secured by that certain Fee and Leasehold Deed of
Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents, Hotel Revenue and Security Deposits dated September 1, 2006, recorded in the real estate records of Maricopa County, Arizona as Document
No. 2006-1183787, as amended by that certain Omnibus Amendment to Loan Documents dated May 9, 2007 (the “Omnibus Amendment”) (as amended, the “Security Instrument”) and that certain Assignment of Leases,
Rents, Hotel Revenues and Security Deposits dated September 1, 2006, recorded in the real estate records of Maricopa County, Arizona as Document No. 2006-1183788, as amended by the Omnibus Amendment (as amended, the “Assignment of
Leases”). 
 D. The Loan is further evidenced and secured by that certain Account and Control Agreement dated
September 1, 2006, as amended by the Omnibus Amendment (as amended, the “Account Agreement”) and that certain Trademark Security Agreement dated as of September 1, 2006, as amended by the Omnibus Amendment (as amended, the
“Trademark Agreement”). 
 E. The Loan is further evidenced and secured by that certain Guaranty of Recourse
Obligations dated September 1, 2006, as amended by the Omnibus Amendment (as amended, the “Recourse Guaranty”) executed by Original Guarantor, that certain Environmental Indemnity dated September 1, 2006, as amended by the
Omnibus Amendment (as amended, the “EIA”) executed by Original Guarantor, and that certain Completion Guaranty dated as of the date of this Agreement (the “Completion Guaranty”) executed by Original Guarantor (the
Recourse Guaranty, the EIA and the Completion Guaranty are sometimes collectively referred to herein as the “Guaranties”). 
 F. The Loan Agreement, the Note, the Security Instrument, the Assignment of Leases, the Account Agreement, the Trademark Agreement, the Guaranties and all other documents and instruments evidencing and/or
securing the Note which have been executed on or before the Effective Date by Original Borrower or others in connection with or related to the Loan, including this Agreement, any assignments, security agreements, financing statements, guaranties,
indemnity agreements, cash management agreements, letters of credit, escrow agreements or escrow/holdback arrangements, all as modified and amended by that certain Restructuring Agreement dated as of the date of this Agreement, between Lender,
Original Borrower, Original Guarantor and Original Operating Lessee (the “Restructuring Agreement”), together with all amendments, modifications, substitutions or replacements thereof, are sometimes herein collectively referred to
as the “Loan Documents.” The Loan Documents are hereby incorporated by this reference as if fully set forth in this Agreement. All capitalized terms used in this Agreement that are not otherwise defined herein shall have the
meanings ascribed to them in the Loan Documents, as in effect on the date of this Agreement. 
 G. Lender and KeyCorp Real
Estate Capital Markets Inc. (“KeyCorp”) entered into a certain Pooling and Servicing Agreement pursuant to which Lender, among other things, authorized KeyCorp to act as servicer on Lender’s behalf and as Lender’s agent
with respect to the subject matter hereof. 
 H. Original Borrower and Original Operating Lessee desire to transfer all of their
respective right, title and interest in and to the Property to New Borrower and New Operating Lessee. To the extent that such transfer requires the consent of Lender under the Loan 

  
 3 

 
Documents, Original Borrower and Original Operating Lessee have requested that Lender consent to such transfer and permit New Borrower to assume the Loan. Subject to the terms and conditions of
this Agreement, Lender is willing to consent to the transfer of the Property to New Borrower and New Operating Lessee and the assumption of the Loan by New Borrower. 
 Agreement 
 NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 
 1. Assumption. 
 (a) New Borrower hereby (i) assumes and agrees to pay
the unpaid balance due and owing under the Loan Documents, together with interest thereon, all in accordance with the terms of the Loan Documents, and (ii) agrees to perform from and after the Effective Date all of the other obligations of
Original Borrower under the Note, Security Instrument and other Loan Documents and be bound by, comply with and perform each and every other covenant, condition, agreement, representation, warranty, waiver, consent, acknowledgment and obligation of
Original Borrower under the Loan Documents with the same force and effect as if New Borrower itself had executed and delivered each and every Loan Document. Without limiting the generality of the foregoing, New Borrower’s assumption includes
the assumption of all obligations, liabilities, and waivers of Original Borrower set forth in the Loan Documents, including, without limitation, the liabilities of Original Borrower as and to the extent set forth in Article 18 of the Loan Agreement.
The foregoing assumption by New Borrower is absolute and unconditional. 
 (b) New Operating Lessee hereby agrees to perform
from and after the Effective Date all of the obligations of Original Operating Lessee under the Note, Security Instrument and other Loan Documents and be bound by, comply with and perform each and every other covenant, condition, agreement,
representation, warranty, waiver, consent, acknowledgment and obligation of Original Operating Lessee under the Loan Documents with the same force and effect as if New Operating Lessee itself had executed and delivered each and every Loan Document
which has been heretofore executed or delivered by the Original Operating Lessee. New Borrower and, as applicable, New Operating Lessee, shall henceforth be deemed to be the “Mortgagor,” “Assignor,” “Trustor,”
“Grantor,” “Indemnitor” and/or “Borrower” under each of the Loan Documents. The foregoing assumption by New Operating Lessee is absolute and unconditional. 

(c) New Guarantor hereby agrees to execute and deliver to Lender on the date of this Agreement New Guarantor’s Guaranty of Recourse
Obligations, Environmental Indemnity and Completion Guaranty whereby New Guarantor has agreed to be jointly and severally liable with Original Guarantor for all of the obligations of Original Guarantor under the Guaranties. All references to the
Guarantor in the Loan Documents shall henceforth be deemed to include both Original Guarantor and New Guarantor. 

  
 4 

 2. Consent. Effective upon the satisfaction of, and subject to, all the terms and
conditions set forth in this Agreement, Lender consents to: (a) the conveyance by Original Borrower and Original Operating Lessee to New Borrower and New Operating Lessee of all of Original Borrower’s and Original Operating Lessee’s
respective rights, title, and interest in and to the Property; (b) the assumption by New Borrower of all of Original Borrower’s obligations and liabilities under the Loan Documents upon the terms and conditions set forth herein; and
(c) the assumption by New Operating Lessee of all of Original Operating Lessee’s obligations and liabilities under the Loan Documents upon the terms and conditions set forth herein. 

3. Ratification, Estoppel and Release. 
 (a) New Borrower hereby ratifies and reaffirms (i) each grant, pledge, assignment and conveyance to Lender of (and New Borrower and New Operating Lessee grant, pledge, assign and convey to Lender a
lien on, pledge of, and security interest in, the Property pursuant to the terms of the Security Instrument, including all rights, interests and property hereafter acquired, and all products and proceeds thereof and additions and accessions
thereto), and (ii) that as of the Effective Date, all of the terms, covenants and provisions of the Loan Documents remain in full force and effect, without modification, except as necessary to implement the terms and provisions of this
Agreement and all the representations and warranties in the Loan Documents are true and correct without modification, except as set forth in the Restructuring Agreement and except as necessary to implement the terms and provisions of this Agreement.

 (b) Original Borrower ratifies and reaffirms that as of the Effective Date, all of the terms, covenants and provisions of the
Loan Documents remain in full force and effect, and that the representations and warranties in the Loan Documents are true and correct with respect to Original Borrower, without modification, except as set forth in the Restructuring Agreement and
except necessary to implement the terms and provisions of this Agreement. 
 (c) Original Guarantor hereby ratifies and
reaffirms that as of the Effective Date, all of the terms, covenants and provisions of the Loan Documents remain in full force and effect and that the representations and warranties in the Loan Documents are true and correct with respect to Original
Guarantor as “Guarantor” and/or “Indemnitor” thereunder, without modification, except as necessary to implement the terms and provisions hereof. 
 (d) New Borrower on this date has made a principal payment of $7,000,000.00 with respect to the Note and the Parties acknowledge that upon application of such payment as of the Effective Date of this
Agreement, the outstanding principal amount of $133,000,000.00 was owing on account of the Note and interest has been paid through June 9, 2011. 
 (e) Original Borrower hereby assigns to New Borrower all of Original Borrower’s right, title and interest in and to any escrow and/or reserve funds or accounts held by Lender. New Borrower hereby
ratifies and confirms its obligations to continue to deposit the required deposits into such escrow and/or reserve funds or accounts as required under the Loan Documents. In addition, New Borrower on this date has paid a deposit (the
“CAPEX Deposit”) to Lender in the amount of $21,400,291.41, which amount has been deposited by Lender in the 

  
 5 

 
CAPEX Reserve Account pursuant to Section 16.6 of the Loan Agreement (as modified by the Restructuring Agreement). Following such deposit to the CAPEX Reserve Account, the parties
hereto hereby acknowledge and confirm that the balance in the CAPEX Reserve Account held by Lender is $21,400,291.41 and the balance of each of the other escrow and/or reserve accounts held by Manager as of June 9, 2011, was as follows:

  

					
	 Tax and Insurance Reserve Account:
	  	$	1,050,525.00	  
	 FF&E Reserve Account:
	  	$	1,499,562.82	  

 (f) Each Borrower
Party hereby remises, releases and forever discharges Lender and all of Lender’s officers, directors, agents, loan servicing agents, special servicing agents, employees, attorneys, subsidiaries, affiliates, successors, assigns and any other
person or entity acting for or on behalf of Lender (collectively, the “Released Lender Parties”), of and from any and all actions, causes of action, damages, demands, costs, expenses, claims, indebtedness, liabilities and
obligations, except as such may have been caused by the gross negligence or willful misconduct of one or more Released Lender Parties, and further waives any and all defenses and setoffs, whether such claims, defenses and setoffs are known or
unknown, disclosed or undisclosed, whether in law or in equity, and relating, in any manner whatsoever, to this Agreement, the Loan, the Note or any of the other Loan Documents or the Property in connection with any matter arising prior to the
Effective Date. Each Borrower Party acknowledges that, subsequent to the execution of this Agreement, it may discover claims that are unknown or unanticipated at the time this Agreement was executed, including unknown or unanticipated claims that
arose from, are based upon, or relate to, matters for which the release is given the Released Lender Parties in this subparagraph, and that, if known on the date it executed this Agreement, may have materially affected its decision to execute this
Agreement. Each Borrower Party acknowledges that it is assuming the risk of such unknown or unanticipated claims and agrees that this Agreement applies thereto. Each Borrower Party expressly waives the benefits of any applicable statutory provision
prohibiting, conditioning or restricting the release of unknown or future claims or any of the claims being released pursuant to this Agreement. 
 (g) The Borrower Parties acknowledge and agree that all waivers, discharges and releases herein contained are a material inducement for Lender entering into this Agreement, and constitute an essential
part of the consideration bargained for and received by Lender under this Agreement. 
 4. Intentionally Deleted. 

5. Representations and Warranties. 
 (a) Each Borrower Party unconditionally and irrevocably ratifies, remakes and confirms as to itself only, all warranties and representations previously made by it in the respective Loan Documents to which
it is a party, as of the date hereof, except (x) to the extent, if any, that the provisions of this Agreement reflect variances from such existing warranties and representations with respect to facts and circumstances existing on the date
hereof, and (y) to the extent that such warranties and representations expressly relate to a specified earlier date, in 

  
 6 

 
which event such warranties and representations are remade as of such earlier date. Additionally, each Borrower Party represents and warrants as to itself as follows: 

(i) it has full power, authority, legal right and capacity to execute, deliver and perform their respective obligations
under this Agreement and the other Loan Documents, the Loan Documents, including, without limitation, this Agreement, constitute valid, enforceable and binding obligations of such party, and as of the Effective Date, there are no counterclaims,
defenses or offsets of any nature whatsoever to any of its respective obligations under the Loan Documents; and 

(ii) subject to paragraph (d) of this Section 5 below, it is duly organized, validly existing and
in good standing under the laws of its state of organization and is duly qualified to transact business and is in good standing in the State where the Property is located. 
 (b) New Borrower further represents and warrants that any funds used by New Borrower for its acquisition of the Property have been contributed as capital contributions and are not secured directly or
indirectly by an interest in New Borrower or any other collateral that has been assigned to Lender under the Loan 
 (c)
Original Borrower and Original Guarantor hereby represent and warrant to Lender, New Borrower and New Guarantor that, as of the Effective Date, no Default or Event of Default, nor any event which, with the passage of time or the giving of notice (or
both) would constitute a Default or Event of Default, has occurred and is continuing under any of the Loan Documents. 
 (d)
Each of New Borrower and New Operating Lessee represents and warrants that, on or before the Effective Date, such party has filed all necessary documents with the State of Arizona to qualify to do business in such State, but, as of the Effective
Date, neither party has received confirmation of such qualification from the State of Arizona. Each of New Borrower and New Operating Lessee hereby agrees to use its best efforts to obtain confirmation of its qualification to do business in Arizona
as soon as possible after the Effective Date and, upon receipt of such confirmation, to deliver to Lender a certificate from the Secretary of State of Arizona evidencing such party’s qualification to do business in Arizona. 

6. Further Documents, Etc. The Borrower Parties each hereby agree to execute and deliver to Lender, and/or authorize the filing
and/or recording by Lender of, any and all further documents and instruments required by Lender to effectuate the transaction contemplated by this Agreement, to create, perfect and/or modify the liens and security interests granted to Lender under
the Loan Documents and/or to give effect to the terms and provisions of this Agreement, including, without limitation, appropriate UCC financing statements or amendments. Lender acknowledges receipt of the following on or before the Effective Date:
(i) certified copies of all documents relating to the organization and formation of New Borrower, New Operating Lessee and New Guarantor, together with all appropriate original documentation evidencing New Borrower’s, New Operating
Lessee’s and New Guarantor’s existence and good standing; (ii) appropriate documentation evidencing the authority of the signers to execute this Agreement; (iii) such legal opinions as may be required by Lender; (iv) title
endorsements to Lender’s title 

  
 7 

 
insurance policy or a replacement Lender’s title insurance policy providing the equivalent coverage; (v) evidence that all insurance required under the Loan Documents is current;
(vi) a current copy of the Management Agreement; and (vii) evidence of payment of all fees, costs and expenses required by Section 7 hereof. 
 7. Costs and Expenses. Original Borrower and/or New Borrower hereby agree to pay any and all fees, costs and expenses, including but not limited to attorneys’ fees and the premium for
endorsements to Lender’s title insurance policy or a replacement Lender’s title insurance policy, incurred by Lender in connection with the negotiation, preparation, filing and/or recording of this Agreement and all other documents and
instruments executed pursuant to this Agreement and/or to create, perfect or modify the liens, security interests, assignments and/or pledges contemplated hereunder. Concurrently with the execution of this Agreement, New Borrower and/or Original
Borrower shall pay Lender all costs and expenses incurred by Lender in connection with the transfer of the Property and the assumption of the Loan. 
 8. No Reliance. New Borrower and New Operating Lessee acknowledge that in consummation of this assumption, New Borrower and New Operating Lessee have not relied on any representations by Lender
regarding the Property, the title thereto or any other matter. 
 9. Miscellaneous. 

(a) This Agreement shall be binding upon the parties hereto and their respective heirs, executors, personal and legal representatives,
successors and assigns. 
 (b) Wherever Lender’s judgment, consent or approval is required under this Agreement, or Lender
shall have an option, election or right of determination under this Agreement that something is satisfactory or not (“Decision Power”), such Decision Power shall be exercised in the sole and absolute discretion of Lender unless
otherwise expressly stated to be reasonably exercised. 
 (c) If any term, covenant or condition of this Agreement shall be held
to be invalid, illegal or unenforceable in any respect, the validity or enforceability of the remaining provisions shall not in any way be affected. 
 (d) This Agreement, and any provisions hereof, may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of any Party, but only
by an agreement in writing signed by the Party against whom enforcement of any modification, amendment, waiver, extension, change, discharge or termination is sought. 
 (e) The following rules of construction are applicable for the purposes of this Agreement and all documents and instruments supplemental hereto unless the context clearly requires otherwise: All
references herein to numbered or lettered Sections or to numbered or lettered Schedules or Exhibits are references to the Sections hereof and the Schedules and Exhibits annexed hereto or otherwise identified in connection herewith. The terms
“include,” “including,” and similar terms shall be construed as if followed by the phrase “without being limited to.” Words of masculine, feminine or neuter gender shall mean and include the correlative words of the
other genders, and words importing the singular number shall mean and 

  
 8 

 
include the plural, and vice versa. The term “person,” when used herein, means any natural person, corporation, general or limited partnership, limited liability company, association,
joint venture, trust, estate, governmental authority or other legal entity, in each case whether in its own or a representative capacity. No inference in favor of or against any party hereto shall be drawn from the fact that such party has drafted
any portion of this Agreement. 
 10. Governing Law; Venue. The provisions of Section 19.3 of the Loan Agreement are
incorporated herein by reference. 
 11. Counterparts. This Agreement may be executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

12. No Impairment. All of the Property described in the Security Instrument and the other Loan Documents shall remain in all
respects subject to the lien, charge and encumbrance of the Security Instrument and the other Loan Documents. Nothing in this Agreement shall be deemed to or shall in any manner prejudice or impair any of the Loan Documents or any security granted
or held by Lender for the Loan or the original priority of the Security Instrument or any of the other Loan Documents. This Agreement shall not be deemed to be nor shall it constitute any alteration, waiver, annulment or variation of the lien and
encumbrance of the Security Instrument or any of the other Loan Documents or the terms and conditions of or any rights, powers or remedies under such documents, except as expressly set forth herein. 

13. Notice. Any notice required or permitted to be given under this Agreement or under any of the other Loan Documents must be in
writing and given (a) by depositing the same in the United States mail, addressed to the Party to be notified, postage prepaid and registered or certified with return receipt requested; (b) by delivering the same in person to such Party;
(c) by transmitting a facsimile copy to the correct facsimile phone number of the intended recipient; or (d) by depositing the same into the custody of a nationally recognized overnight delivery service addressed to the Party to be
notified. In the event of mailing, notices shall be deemed effective three (3) days after posting; in the event of overnight delivery, notices shall be deemed effective on the next business day following deposit with the delivery service; and
in the event of personal service or facsimile transmissions, notices shall be deemed effective when delivered. For purposes of notice, the addresses of the Parties shall be as follows, and the Loan Documents are hereby amended to include the
addresses set forth below: 
  

			
	Original Borrower:	  	SHR SCOTTSDALE, L.L.C
		  	c/o Strategic Hotels & Resorts
		  	200 W. Madison, Suite 1700
		  	Chicago, Illinois 60606
		  	Attn: Paula Maggio
		  	Facsimile: (312) 658-5794
		
	 With a copy of any notice
 to
Original Borrower to:
	  	Perkins Coie LLP
		  	131 S. Dearborn
		  	Chicago, Illinois 60603

  
 9 

			
		  	Attn: Bruce A. Bonjour
		  	Facsimile: (312) 324-9650
		
	New Borrower:	  	FMT SCOTTSDALE OWNER, LLC
		  	c/o Strategic Hotels & Resorts
		  	200 W. Madison, Suite 1700
		  	Chicago, Illinois 60606
		  	Attn: Paula Maggio
		  	Facsimile: (312) 658-5794
		
	 With a copy of any notice
 to
New Borrower to:
	  	Perkins Coie LLP
		  	131 S. Dearborn
		  	Chicago, Illinois 60603
		  	Attn: Bruce A. Bonjour
		  	Facsimile: (312) 324-9650
		
	Lender:	  	c/o KeyCorp Real Estate Capital Markets, Inc.
		  	11501 Outlook, Suite 300
		  	Overland Park, Kansas 66211
		  	Facsimile: (877) 379-1625
		
	 With a copy of any notice
 to
Lender to:
	  	Daniel Flanigan, Esq.
		  	Polsinelli Shughart PC
		  	700 W. 47th Street, Suite 1000
		  	Kansas City, Missouri 64112
		  	Facsimile: (816) 753-1536
		
	Original Guarantor:	  	STRATEGIC HOTEL FUNDING L.L.C.
		  	c/o Strategic Hotels & Resorts
		  	200 W. Madison, Suite 1700
		  	Chicago, Illinois 60606
		  	Attn: Paula Maggio
		  	Facsimile: (312) 658-5794
		
	 With a copy of any notice
 to
Original Guarantor to:
	  	Perkins Coie LLP
		  	131 S. Dearborn
		  	Chicago, Illinois 60603
		  	Attn: Bruce A. Bonjour
		  	Facsimile: (312) 324-9650
		
	New Guarantor:	  	c/o Walton Street Capital, L.L.C.
		  	900 N. Michigan Avenue, Suite 1900
		  	Chicago, Illinois 60611

  
 10 

			
		  	Attn: General Counsel
		  	Facsimile: (312) 915-2881
		
	 With a copy of any notice
 to
New Guarantor to:
	  	Latham & Watkins LLP
		  	233 South Wacker Drive
		  	Suite 5800
		  	Chicago, Illinois 60606
		  	Attn: Gary E. Axelrod
		  	Facsimile: (312) 993-9767
		
	Original Operating Lessee:	  	DTRS SCOTTSDALE, L.L.C.
		  	c/o Strategic Hotels & Resorts
		  	200 W. Madison, Suite 1700
		  	Chicago, Illinois 60606
		  	Attn: Paula Maggio
		  	Facsimile: (312) 658-5794
		
	 With a copy of any notice
 to
Original Operating Lessee to:
	  	Perkins Coie LLP
		  	131 S. Dearborn
		  	Chicago, Illinois 60603
		  	Attn: Bruce A. Bonjour
		  	Facsimile: (312) 324-9650
		
	New Operating Lessee:	  	WALTON/SHR FPH, LLC
		  	c/o Strategic Hotels & Resorts
		  	200 W. Madison, Suite 1700
		  	Chicago, Illinois 60606
		  	Attn: Paula Maggio
		  	Facsimile: (312) 658-5794
		
	 With a copy of any notice
 to
New Operating Lessee to:
	  	Perkins Coie LLP
		  	131 S. Dearborn
		  	Chicago, Illinois 60603
		  	Attn: Bruce A. Bonjour
		  	Facsimile: (312) 324-9650

 15.
WAIVER OF TRIAL BY JURY. The provisions of Section 19.7 of the Loan Agreement are incorporated herein by reference. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 11 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

							
	Original Borrower:	 		 	SHR SCOTTSDALE, L.L.C., a Delaware limited liability company
				
		 		 	By:	 	  

		 		 	Name:	 	Robert T. McAllister
		 		 	Title:	 	Senior Vice President, Tax

  

			
	STATE OF                     	 	)
		 	) ss
	COUNTY OF                 	 	)

 On this     
day of June in the year 2011, before me,
                                        ,
a Notary Public in and for said State, personally appeared Robert T. McAllister , who being by me duly sworn did say that he is the Senior Vice President, Tax, of SHR SCOTTSDALE, L.L.C., a Delaware limited liability company, and that the
within instrument was signed on behalf of said limited liability company by authority of its members, and acknowledged said instrument to be the free act and deed of said limited liability company for the purposes therein stated. 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written. 

 

	
	  

	Notary Public in and for Said County and State
	
	  

	(Type, print or stamp the Notary’s name below his or her signature.)

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

							
	New Borrower:	 		 	FMT SCOTTSDALE OWNER, LLC, a Delaware limited liability company
				
		 		 	By:	 	  

		 		 	Name:	 	Robert T. McAllister
		 		 	Title:	 	Senior Vice President, Tax

  

			
	STATE OF                     	 	)
		 	) ss
	COUNTY OF                 	 	)

 On this     
day of June in the year 2011, before me,
                                        ,
a Notary Public in and for said State, personally appeared Robert T. McAllister , who being by me duly sworn did say that he is the Senior Vice President, Tax, of FMT SCOTTSDALE OWNER, LLC, a Delaware limited liability company, and that the
within instrument was signed on behalf of said limited liability company by authority of its members, and acknowledged said instrument to be the free act and deed of said limited liability company for the purposes therein stated. 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written. 

 

	
	  

	Notary Public in and for Said County and State
	
	  

	(Type, print or stamp the Notary’s name below his or her signature.)

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

							
	Original Guarantor:	 		 	STRATEGIC HOTEL FUNDING, L.L.C., a Delaware limited liability company
				
		 		 	By:	 	  

		 		 	Name:	 	Robert T. McAllister
		 		 	Title:	 	Senior Vice President, Tax

  

			
	STATE OF                     	 	)
		 	) ss
	COUNTY OF                 	 	)

 On this     
day of June in the year 2011, before me,
                                        ,
a Notary Public in and for said State, personally appeared Robert T. McAllister, who being by me duly sworn did say that he is the Senior Vice President, Tax, of STRATEGIC HOTEL FUNDING, L.L.C., a Delaware limited liability company, and that
the within instrument was signed on behalf of said limited liability company by authority of its members, and acknowledged said instrument to be the free act and deed of said limited liability company for the purposes therein stated. 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written. 

 

	
	  

	Notary Public in and for Said County and State
	
	  

	(Type, print or stamp the Notary’s name below his or her signature.)

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

											
	New Guarantor:	 		 	WALTON STREET REAL ESTATE FUND VI, L.P., a Delaware limited partnership
				
		 		 	By:	 	Walton Street Managers VI, L.P., its general partner
					
		 		 		 	By:	 	WSC Managers VI, Inc., its general partner
						
		 		 		 		 	By:	 	  

		 		 		 		 	Name:	 	  

		 		 		 		 	Title:	 	  

 

			
	STATE OF                     	 	)
		 	) ss
	COUNTY OF                 	 	)

 On this     
day of June in the year 2011, before me,
                                        ,
a Notary Public in and for said State, personally appeared
                                        ,
who being by me duly sworn did say that s/he is the
                                        
of WSC Managers VI, Inc., a Delaware corporation, the General Partner of Walton Street Managers VI, L.P., a Delaware limited partnership, the General Partner of WALTON STREET REAL ESTATE FUND VI, L.P., a Delaware limited partnership, and that
the within instrument was signed on behalf of said limited partnership by authority of its partners, and acknowledged said instrument to be the free act and deed of said limited partnership for the purposes therein stated. 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written. 

 

	
	  

	Notary Public in and for Said County and State
	
	  

	(Type, print or stamp the Notary’s name below his or her signature.)

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

											
	New Guarantor:	 		 	WALTON STREET REAL ESTATE FUND VI-Q, L.P., a Delaware limited partnership
				
		 		 	By:	 	Walton Street Managers VI, L.P., its general partner
					
		 		 		 	By:	 	WSC Managers VI, Inc., its general partner
						
		 		 		 		 	By:	 	  

		 		 		 		 	Name:	 	  

		 		 		 		 	Title:	 	  

 

			
	STATE OF                     	 	)
		 	) ss
	COUNTY OF                 	 	)

 On this     
day of June in the year 2011, before me,
                                        
, a Notary Public in and for said State, personally appeared
                                        ,
who being by me duly sworn did say that s/he is the
                                        
of WSC Managers VI, Inc., a Delaware corporation, the General Partner of Walton Street Managers VI, L.P., a Delaware limited partnership, the General Partner of WALTON STREET REAL ESTATE FUND VI-Q, L.P., a Delaware limited partnership,
and that the within instrument was signed on behalf of said limited partnership by authority of its partners, and acknowledged said instrument to be the free act and deed of said limited partnership for the purposes therein stated. 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written. 

 

	
	  

	Notary Public in and for Said County and State
	
	  

	(Type, print or stamp the Notary’s name below his or her signature.)

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

											
	New Guarantor:	 		 	WALTON STREET REAL ESTATE FUND VI-E, L.P., a Delaware limited partnership
				
		 		 	By:	 	Walton Street Managers VI, L.P., its general partner
					
		 		 		 	By:	 	WSC Managers VI, Inc., its general partner
						
		 		 		 		 	By:	 	  

		 		 		 		 	Name:	 	  

		 		 		 		 	Title:	 	  

 

			
	STATE OF                         
	 	)
		 	) ss
	COUNTY OF                     	 	)

 On this     
day of June in the year 2011, before me,
                                        ,
a Notary Public in and for said State, personally appeared
                                        ,
who being by me duly sworn did say that s/he is the
                                        
of WSC Managers VI, Inc., a Delaware corporation, the General Partner of Walton Street Managers VI, L.P., a Delaware limited partnership, the General Partner of WALTON STREET REAL ESTATE FUND VI-E, L.P., a Delaware limited partnership,
and that the within instrument was signed on behalf of said limited partnership by authority of its partners, and acknowledged said instrument to be the free act and deed of said limited partnership for the purposes therein stated. 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written. 

 

	
	  

	Notary Public in and for Said County and State
	
	  

	(Type, print or stamp the Notary’s name below his or her signature.)

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

											
	New Guarantor:	 		 	WALTON STREET REAL ESTATE INVESTORS VI, L.P., a Delaware limited partnership
				
		 		 	By:	 	Walton Street Managers VI, L.P., its general partner
					
		 		 		 	By:	 	WSC Managers VI, Inc., its general partner
						
		 		 		 		 	By:	 	  

		 		 		 		 	Name:	 	  

		 		 		 		 	Title:	 	  

 

			
	STATE OF                         
	 	  )
		 	  ) ss
	COUNTY OF                     	 	  )

 On this
     day of June in the year 2011, before me,
                                        ,
a Notary Public in and for said State, personally appeared
                                        ,
who being by me duly sworn did say that s/he is the
                                        
of WSC Managers VI, Inc., a Delaware corporation, the General Partner of Walton Street Managers VI, L.P., a Delaware limited partnership, the General Partner of WALTON STREET REAL ESTATE INVESTORS VI, L.P., a Delaware limited
partnership, and that the within instrument was signed on behalf of said limited partnership by authority of its partners, and acknowledged said instrument to be the free act and deed of said limited partnership for the purposes therein stated.

 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written.

  

	
	  

	Notary Public in and for Said County and State
	
	  

	(Type, print or stamp the Notary’s name below his or her signature.)

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

											
	New Guarantor:	 		 	WALTON STREET REAL ESTATE PARTNERS VI, L.P., a Delaware limited partnership
				
		 		 	By:	 	Walton Street Managers VI, L.P., its general partner
					
		 		 		 	By:	 	WSC Managers VI, Inc., its general partner
						
		 		 		 		 	By:	 	  

		 		 		 		 	Name:	 	  

		 		 		 		 	Title:	 	  

 

			
	STATE OF                         
	 	  )
		 	  ) ss
	COUNTY OF                     	 	  )

 On this
     day of June in the year 2011, before me,
                                        ,
a Notary Public in and for said State, personally appeared
                                        ,
who being by me duly sworn did say that s/he is the
                                        
of WSC Managers VI, Inc., a Delaware corporation, the General Partner of Walton Street Managers VI, L.P., a Delaware limited partnership, the General Partner of WALTON STREET REAL ESTATE PARTNERS VI, L.P., a Delaware limited
partnership, and that the within instrument was signed on behalf of said limited partnership by authority of its partners, and acknowledged said instrument to be the free act and deed of said limited partnership for the purposes therein stated.

 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written.

  

	
	  

	Notary Public in and for Said County and State
	
	  

	(Type, print or stamp the Notary’s name below his or her signature.)

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

											
	New Guarantor:	 		 	 WALTON STREET REAL ESTATE PARTNERS
 VI-NGE, L.P., a Delaware limited partnership

				
		 		 	By:	 	Walton Street Managers VI, L.P., its general partner
					
		 		 		 	By:	 	WSC Managers VI, Inc., its general partner
						
		 		 		 		 	By:	 	  

		 		 		 		 	Name:	 	  

		 		 		 		 	Title:	 	  

 

			
	STATE OF                         
	 	  )
		 	  ) ss
	COUNTY OF                     	 	  )

 On this
     day of June in the year 2011, before me,
                                        ,
a Notary Public in and for said State, personally appeared
                                        ,
who being by me duly sworn did say that s/he is the
                                        
of WSC Managers VI, Inc., a Delaware corporation, the General Partner of Walton Street Managers VI, L.P., a Delaware limited partnership, the General Partner of WALTON STREET REAL ESTATE PARTNERS VI-NGE, L.P., a Delaware limited partnership,
and that the within instrument was signed on behalf of said limited partnership by authority of its partners, and acknowledged said instrument to be the free act and deed of said limited partnership for the purposes therein stated. 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written. 

 

	
	  

	Notary Public in and for Said County and State
	
	  

	(Type, print or stamp the Notary’s name below his or her signature.)

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

											
	New Guarantor:	 		 	WSC CAPITAL HOLDINGS VI, L.P., a Delaware limited partnership
				
		 		 	By:	 	Walton Street Managers VI, L.P., its general partner
					
		 		 		 	By:	 	WSC Managers VI, Inc., its general partner
						
		 		 		 		 	By:	 	  

		 		 		 		 	Name:	 	  

		 		 		 		 	Title:	 	  

 

			
	STATE OF                         
	 	  )
		 	  ) ss
	COUNTY OF                     	 	  )

 On this
     day of June in the year 2011, before me,
                                        ,
a Notary Public in and for said State, personally appeared
                                        ,
who being by me duly sworn did say that s/he is the
                                        
of WSC Managers VI, Inc., a Delaware corporation, the General Partner of Walton Street Managers VI, L.P., a Delaware limited partnership, the General Partner of WSC CAPITAL HOLDINGS VI, L.P., a Delaware limited partnership, and that the
within instrument was signed on behalf of said limited partnership by authority of its partners, and acknowledged said instrument to be the free act and deed of said limited partnership for the purposes therein stated. 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written. 

 

	
	  

	Notary Public in and for Said County and State
	
	  

	(Type, print or stamp the Notary’s name below his or her signature.)

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

					
	Original Operating Lessee:	 	DTRS SCOTTSDALE, L.L.C., a Delaware limited liability company
			
		 	By:	 	  

		 	Name:	 	Robert T. McAllister
		 	Title:	 	Senior Vice President, Tax

  

			
	STATE OF                         
	 	  )
		 	  ) ss
	COUNTY OF                     	 	  )

 On this
     day of June in the year 2011, before me,
                                        ,
a Notary Public in and for said State, personally appeared Robert T. McAllister, who being by me duly sworn did say that he is the Senior Vice President, Tax, of DTRS SCOTTSDALE, L.L.C., a Delaware limited liability company, and that the
within instrument was signed on behalf of said limited liability company by authority of its members, and acknowledged said instrument to be the free act and deed of said limited liability company for the purposes therein stated. 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written. 

 

	
	  

	Notary Public in and for Said County and State
	
	  

	(Type, print or stamp the Notary’s name below his or her signature.)

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

					
	New Operating Lessee:	 	WALTON/SHR FPH, LLC, a Delaware limited liability company
			
		 	By:	 	  

		 	Name:	 	Robert T. McAllister
		 	Title:	 	Senior Vice President, Tax

  

			
	STATE OF                         
	 	  )
		 	  ) ss
	COUNTY OF                     	 	  )

 On this
     day of June in the year 2011, before me,
                                        ,
a Notary Public in and for said State, personally appeared Robert T. McAllister, who being by me duly sworn did say that he is the Senior Vice President, Tax, of WALTON/SHR FPH, LLC, a Delaware limited liability company, and that the within
instrument was signed on behalf of said limited liability company by authority of its members, and acknowledged said instrument to be the free act and deed of said limited liability company for the purposes therein stated. 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written. 

 

	
	  

	Notary Public in and for Said County and State
	
	  

	(Type, print or stamp the Notary’s name below his or her signature.)

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 
  

							
	Lender:	 	BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE REGISTERED HOLDERS OF THE CITIGROUP COMMERCIAL
MORTGAGE TRUST 2007-FL3 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3
			
		 	By:	 	 KeyCorp Real Estate Capital Markets, Inc.,
 an Ohio corporation,
 as Authorized Agent

				
		 		 	By:	 	  

		 		 	Name:	 	C. Meade Hubby
		 		 	Title:	 	Vice President, Special Servicing

  

			
	STATE OF MISSOURI	 	  )
		 	  ) ss.
	COUNTY OF JACKSON	 	  )

 On this
     day of June, 2011, before me, the undersigned notary public, personally appeared C. Meade Hubby, the Vice President, Special Servicing of KeyCorp Real Estate Capital Markets, Inc., an Ohio corporation, the authorized
agent for BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE REGISTERED HOLDERS OF THE CITIGROUP COMMERCIAL MORTGAGE TRUST 2007-FL3 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES,
SERIES 2007-FL3, known to me to be the person who executed the document on behalf of BANK OF AMERICA, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE REGISTERED HOLDERS OF THE CITIGROUP
COMMERCIAL MORTGAGE TRUST 2007-FL3 COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-FL3 and acknowledged to me that s/he executed the same for the purposes therein stated. 

 

	
	  

	Notary Public in and for Said County and State
	
	  

	(Type, print or stamp the Notary’s name below his or her signature)

  

			
	My Commission Expires:
		
	  
	 	

 EXHIBIT A 
 LEGAL DESCRIPTION 

 EXHIBIT F 

Legal Description of Additional Parcel 
 Parcel No. 7: 
 That portion of the Northeast one-quarter of the Southwest one-quarter
of Section 35, Township 4 North, Range 4 East of the Gila and Salt River Base and Meridian, Maricopa County, Arizona, described as follows: 
 COMMENCING at the center of said Section 35; 
 THENCE North 89 degrees 49
minutes 46 seconds West along the East-West mid-section line of said Section 35, a distance of 392.00 feet to the TRUE POINT OF BEGINNING; 
 THENCE South 00 degrees 10 minutes 14 seconds West, 232.27 to the beginning of a curve concave to the East having a radius of 500.00 feet; 

THENCE Southerly along said curve through a central angle of 16 degrees 17 minutes 57 seconds an arc distance of 142.24 feet; 

THENCE North 89 degrees 49 minutes 46 seconds West, 385.35 feet to the beginning of a curve concave to the Southeast having a radius of
100.00 feet; 
 THENCE Southwesterly along said curve through a central angle of 49 degrees 35 minutes 38 seconds, an arc
distance of 86.56 feet to the point of tangency; 
 THENCE South 40 degrees 34 minutes 36 seconds West, 352.13 feet; 

THENCE North 49 degrees 25 minutes 14 seconds West, 59.77 feet to the beginning of a curve concave to the Southwest having a radius of
250.00 feet; 
 THENCE Northwesterly along said curve through a central angle of 51 degrees 43 minutes 26 seconds, an arc
distance of 225.69 feet to the point of tangency; 
 THENCE South 78 degrees 51 minutes 20 seconds West, 4.33 feet to the West
line of said Northeast one-quarter; 
 THENCE North 00 degrees 01 minutes 45 seconds East, 507.05 feet along said West line to
the beginning of a non-tangent curve concave to the Southeast having a radius of 805.00 feet and a radial bearing to said beginning being South 24 degrees 57 minutes 36 seconds East; 

THENCE Northeasterly along said curve through a central angle of 25 degrees 07 minutes 50 seconds, an arc distance of 353.08 feet to the
point of tangency said point lying on the North line of said Northeast one-quarter; 
 THENCE South 89 degrees 49 minutes 46
seconds East, 589.90 feet along the North line of said Northeast one-quarter to the POINT OF BEGINNING; 
 EXCEPT one-half of all
oil and mineral rights as reserved in instrument recorded in Docket 124, page 39, records of Maricopa County, Arizona. 

 EXHIBIT G 

GROUND LEASE AMENDMENT 

 DRAFT 
 WHEN RECORDED RETURN TO: 
 CITY OF SCOTTSDALE 

ONE STOP SHOP/RECORDS 
 (Tom Beat) 

7447 East Indian School Road, Suite 100 

Scottsdale, AZ 85251 
 FOURTH
AMENDMENT TO GROUND LEASE 
 THIS FOURTH AMENDMENT TO GROUND LEASE (this “Amendment”) is made and entered into as
of this      day of                     , 2011, by and between the City of Scottsdale, an Arizona municipal
corporation (the “Lessor”) and FMT Scottsdale Owner, LLC, a Delaware limited liability company which is the assignee of SHR Scottsdale, L.L.C., a Delaware limited liability company formerly known as SHR Scottsdale X, L.L.C., a Delaware
limited liability company and successor by merger to SHR Scottsdale Y, L.L.C., a Delaware limited liability company (collectively, “Lessee”) (with Lessor and Lessee being referred to herein, collectively, as the “Parties”)

 RECITALS 
 A.
Lessor, as lessor, and Scottsdale Princess Partnership, an Arizona general partnership, as lessee (“Original Lessee”) entered into that certain Ground Lease dated December 30, 1985 (a memorandum of which, titled Memorandum of Ground
Lease and Right of First Refusal to Purchase, was recorded December 2, 1986 in the Official Records of Maricopa County, Arizona (the “Official Records”) as document number 86-664161), as amended by that certain First Amendment to
Ground Lease dated November 17, 1986, that certain Second Amendment to Ground Lease dated April 4, 1995 and recorded on April 6, 1995 in the Official Records as document number MCR95-0191354, and that certain Wall and Sign Agreement
and Third Amendment to Ground Lease dated May 19, 2003 and recorded May 28, 2003 in the Official Records as document number MCR2003-0675900 (as amended, the “Ground Lease”). 

B. The Ground Lease was assigned to SHR Scottsdale X, L.L.C., a Delaware limited liability company and SHR Scottsdale Y, L.L.C., a Delaware limited
liability company (“Scottsdale Y”), as tenants-in-common, pursuant to that certain Assignment and Assumption of Ground Lease dated as of September 1, 2006 and recorded in the Official Records on September 6, 2006 as document
number 2006-1183784, and Lessee is successor by merger to Scottsdale Y. 
 C. The Ground Lease was assigned to FMT Scottsdale Owner, LLC, a
Delaware limited liability company, pursuant to that certain Assignment and Assumption of Ground Lease dated as of                     , 2011
and recorded in the Official Records on                     , 2011 as document number
                    . 

  

					
		 	Exhibit “A”	 	Contract No. 86-0224
		 	Page 1 of 4	 	

 D. Pursuant to the Ground Lease, Lessee leases from Lessor certain real property located in the City of
Scottsdale, State of Arizona (the “Ground Leased Property”), which Property is more particularly described in Exhibit “A” attached hereto. 
 E. The Ground Leased Property is adjacent to certain real property owned in fee by Lessee (the “Fee Property” and together with the Ground Leased Property, the “Property”). 

F. The Property is improved by a hotel facility commonly known as “The Fairmont Scottsdale Princess” (the “Hotel”). 

G. The Parties desire to amend the Ground Lease on the terms and conditions set forth herein. 

AGREEMENT 
 NOW,
THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, effective as of the Effective Date (as defined below), the parties hereby agree as follows: 

1. Minimum Base Rent. The minimum annual base rent (the “Base Rent”) for each of the calendar years 2011 through 2014
shall be $1,500,000. 
 2. Rent. In addition to the Base Rent, Lessee shall pay Rent as follows: 

a. For the calendar years 2011 through 2014: 2.0% of Gross Sales up to $75,000,000 and 1.25% of Gross Sales in excess of $75,000,000

 b. For the calendar years 2015 through 2019: 1.5% of Gross Sales 

c. For the calendar years 2020 and beyond: 2.0% of Gross Sales 
 provided, however; in the event that the Ground Leased Property secured indebtedness of Lessee in an amount in excess of $150,000,000 in any full calendar year, then the Base Rent shall
increase to 2.0% of Gross Sales for such calendar year. 
 3. Space Expansion. This Amendment shall be subject to the
completion of the ballroom and meeting space expansion substantially similar to that described in Exhibit A attached hereto by year-end 2013. Additionally, this Amendment shall be null and void and of no further force or effect in the event of a
Bankruptcy or Foreclosure against or initiated by, Lessee. 
 4. Term. The Term of the Ground Lease is hereby extended
twenty-five (25) years so that the Term of the Ground Lease now expires on                      2110. 

  

					
		  	Exhibit “A”	  	Contract No. 86-0224
		  	Page 2 of 4	  	

 5. Debt Restructuring. On or before the date of this Amendment, Lessee shall provide
Lessor evidence that the mortgage loan with the existing lender under that certain Loan and Security Agreement dated as of September 1, 2006 (the “Loan”) between Lessee and Citigroup Global Markets Realty Corp. (together with its
successors and assigns, the “Lender”) encumbering the Hotel has been modified and extended. 
 6.
Miscellaneous. This Amendment shall be binding on and inure to the benefit of the parties hereto, their heirs, executors, administrators, successors in interest and assigns. This Amendment shall be governed by and construed in accordance with
the laws of the State of Arizona. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument. 

IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as of the day and year first written above. 

 

					
	Lessee:	 	FMT SCOTTSDALE OWNER, LLC, a Delaware limited liability company,
			
		 	By:	 	 DRAFT

		 	Name:	 	  

		 	Title:	 	  

		
	Lessor:	 	The City of Scottsdale
			
		 	By:	 	 DRAFT

		 	Name:	 	  

		 	Title:	 	  

  

					
		  	Exhibit “A”	  	Contract No. 86-0224
		  	Page 3 of 4	  	

					
	
STATE OF                     

	  	)	  	
		  	)ss.	  	
	County of                     	  	)	  	

 The foregoing instrument was acknowledged before me this
             day of                     , 2011, by
                    , as
                     of
                    , a
                     the
                     of
                     on behalf of
                    . 
  

	
	  

	Notary Public

  

	
	My Commission Expires:
	  
  

 

					
	
STATE OF                     

	  	)	  	
		  	)ss.	  	
	County of                     	  	)	  	

 The foregoing instrument was acknowledged before me this
             day of                     , 2011, by
                    , as
                     of
                    , a
                     the
                     of
                     on behalf of
                     
  

	
	  

	Notary Public

  

	
	My Commission Expires:
	  
  

  

					
		  	Exhibit “A”	  	Contract No. 86-0224
		  	Page 4 of 4	  	

 EXHIBIT H 

FORM OF CONSTRUCTION DRAW REQUEST 

 EXHIBIT 

Borrower’s Draw Request Certificate 
 KeyCorp Real Estate Capital Markets, Inc. 
 11501 Outlook, Suite 300 

Overland Park, Kansas 66211 
 ATTN: CASH
MANAGEMENT DEPARTMENT 
 LOAN NO. 10037091 
  

	RE:	Application for Disbursement in connection with a loan in the original principal amount of $140,000,000.00 (Loan #10037091) to FMT Princess Owner, LLC, a Delaware
limited liability company (“Borrower”). 

  

	 	1.	Pursuant to that certain Loan and Security Agreement, dated as of September 1, 2006, as amended by that certain Amendment to Mortgage Loan and Security Agreement
dated May 9, 2007, and that certain Restructuring Agreement dated June     , 2011 (as amended, the “Loan Agreement”) between Borrower and Bank of America, National Association, successor by merger to LaSalle
Bank National Association, as Trustee for the registered holders of the Citigroup Commercial Mortgage Trust 2007-FL3, Commercial Mortgage Pass-Through Certificates, Series 2007-FL3 (“Lender”), Borrower hereby requests a disbursement of
funds from the CAPEX Reserve Account as indicated on the completed standard AIA Form G702 and Form G703 attached hereto. We acknowledge that this amount is subject to inspection, verification, and available funds. 

Funding Instructions 
  

	 	2.	This Borrower’s Certificate is to be utilized only in satisfaction of costs and charges with respect to the Project and Improvements thereon as shown on the
standard AIA Form G702 and Form G703 (which require and are not valid without the signatures of the General Contractor, Borrower and Architect)and the completed Borrower Soft and Hard Cost Requisition Form, executed by an Authorized
Representative of Borrower, attached hereto. 

  

	 	3.	The Borrower agrees to provide, if requested by Lender, a Vendor Payee Listing showing the name and the amount currently due each party to whom Borrower is obligated
for labor, material and/or services supplies. This information would be provided in support of the disbursements set forth in paragraph 1 hereof. 

  

	 	4.	The Borrower also certifies and agrees that: 

	 	(a)	It has complied with all duties and obligations required to date to be carried out and performed by it pursuant to the terms of the Loan Agreement;

  

	 	(b)	No Event of Default as defined in the Loan Agreement, nor any event, circumstance or condition which with notice or the passage of time or both would be an Event of
Default, has occurred and is continuing and; 

  

	 	(c)	All Change Orders or changes to the Schedule of Values have been submitted on standard AIA G701 form (which requires and is not valid without the signatures of
the General Contractor, Borrower and Architect) to and approved by Lender to the extent required under the Loan Agreement; 

  

	 	(d)	All funds previously disbursed have been used for the purposes as set forth in the Loan Agreement; 

 

	 	(e)	All outstanding claims for labor, materials and/or services furnished prior to this draw period have been paid or will be paid from the proceeds of this disbursement;

  

	 	(f)	All construction prior to the date of this Borrower’s Draw Request Certificate has been accomplished in accordance with the Plans and Specifications approved by
Lender; 

  

	 	(g)	All sums advanced by Lender will be used solely for the purpose of paying costs of the Project owing as shown on the attached AIA Form G702 and Form G703 and Borrower
Soft and Hard Cost Requisition Form and no disbursement requested hereunder has been the basis for any prior disbursement funds under the Loan Agreement; 

  

	 	(h)	Lender shall withhold ten percent (10%) of the total amount then due the General Contractor and the various contractors, subcontractors and material suppliers for
costs of the Construction from the amount disbursed. The retained amounts (the “Retainage”) will be disbursed only at the time of the final disbursement of funds from the CAPEX Reserve Account provided, however, upon the satisfactory
completion of one hundred percent (100%) of the work with respect to any trade (including any trade performed by the General Contractor) or the delivery of all materials pursuant to a purchase order in accordance with the Plans and
Specifications as certified by the Architect and the General Contractor, Lender may decide on a case by case basis (but shall not be obligated) to permit Retainage with respect to such trade or order, as the case may be, to be disbursed to Borrower
upon the Lender’s approval of all work and materials and Lender’s receipt of a final waiver of lien with respect to such completed work or delivered materials; 

  
 2 

	 	(i)	Any requests for disbursements which in whole or in part relate to materials, equipment or furnishings which Borrower owns and which are not incorporated into the
Improvements as of the date of the request for disbursement, but are to be temporarily stored at the Project, shall be accompanied by evidence satisfactory to Lender that (i) such stored materials are included within the coverages of insurance
policies carried by Borrower, (ii) the ownership of such materials is vested in Borrower free of any liens and claims of third parties, (iii) such materials are properly insured and protected against theft or damage, (iv) the
materials used in the construction are not commodity items but are uniquely fabricated for the construction, and (v) the stored materials are physically secured and can be incorporated into the Project within forty five (45) days. Lender
may require separate Uniform Commercial Code financing statements to cover any such stored materials; 

  

	 	(j)	Lender may in its sole discretion, but shall not be obligated to, approve disbursements for materials stored off-site, in which event all of the requirements of
paragraph (i) above shall be applicable to such disbursement as well as any other requirements which Lender may, in its sole discretion, determine are appropriate under the circumstances; 

 

	 	(k)	There are no liens outstanding against the subject project or its equipment except for Lender’s liens and security interests as agreed upon in the Loan Agreement;

  

	 	(l)	The amount of undisbursed funds held in the CAPEX Reserve Account is sufficient to pay the cost of completing the Project in accordance with the Plans and
Specifications and Project Budget approved by Lender as modified by Lender in approved Change Orders; 

  

	 	(m)	All representations and warranties contained in the Loan Agreement are true and correct as of the date hereof. 

 

	 	(n)	The undersigned understands that this certification is made for the purpose of inducing Lender to make a disbursement to Borrower and that, in making such disbursement,
Lender will rely upon the accuracy of the matters stated in this Certificate. 

  

	 	5.	[FINAL DISBURSEMENT ONLY] Disbursement of funds from the CAPEX Reserve Account hereby requested are subject to the receipt by Lender, in those states where applicable,
of a certificate from the issuing title company stating that no claims have been filed of record which adversely affects the title of Borrower to the Project, subsequent to the filing of the Lender’s Security Instrument.

  

	 	6.	The terms used in this Borrower’s Draw Request Certificate have the same meaning and definitions as those set forth in the Loan Agreement.

  
 3 

	 	7.	The Borrower, or authorized signer, certifies that the statements made in this Borrower’s Certificate and any documents submitted herewith and identified herein
are true and has duly caused this Borrower’s Certificate to be signed on its behalf by the undersigned Authorized Representative. 

  

			
	DATE:	 	  

	
	BORROWER:
	
	FMT PRINCESS OWNER, LLC, A
	Delaware limited liability company
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 4 

 ATTACHMENTS 

 

	1.	Completed and signed Borrower Soft and Hard Cost Requisition Form; 

  

	2.	Completed and signed AIA Form G702 and Form G703; 

  

	3.	General Contractor’s sworn statements and unconditional waivers of lien; 

 

	4.	All subcontractors’, material suppliers’ and laborers’ conditional waivers of lien, covering all work, paid with the proceeds of prior draw requests;

  

	5.	Such invoices, contracts or other supporting data as Lender may require to evidence that all costs for which disbursement is sought; 

 

	6.	Paid invoices or other evidence satisfactory to Lender that fixtures and equipment, if any, have been paid for and are free of any lien or security interest therein;

  

	7.	Copies of any proposed or executed Change Orders on standard AIA G701 form which have not been previously furnished to Lender; 

 

	8.	Copies of all construction contracts (including subcontracts) which have been executed since the last disbursement, together with any Bonds obtained or required to be
obtained; and 

  

	9.	All Required Permits and all other Governmental Approvals then needed in connection with the Project. 

  
 5 

 EXHIBIT I 

ORGANIZATIONAL CHART 

 FAIRMONT SCOTTSDALE PRINCESS 

FINAL STRUCTURE

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