Document:

Exhibit
10.2

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED BASED UPON A
REQUEST FOR CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 OF THE

SECURITIES EXCHANGE ACT OF 1934 AND HAVE BEEN SEPARATELY FILED

WITH THE SECURITIES AND EXCHANGE COMMISSION

SECOND
AMENDED AND RESTATED

LIMITED
LIABILITY COMPANY AGREEMENT

OF

W2005
KAPALUA/GENGATE HOTEL HOLDINGS, L.L.C.

THE
INTERESTS OF THE MEMBERS ISSUED UNDER THIS AGREEMENT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR THE
DISTRICT OF COLUMBIA.  NO RESALE OR
TRANSFER OF AN INTEREST BY A MEMBER IS PERMITTED EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF THIS AGREEMENT AND ANY APPLICABLE FEDERAL OR STATE SECURITIES
LAWS, AND ANY VIOLATION OF SUCH PROVISIONS COULD EXPOSE THE SELLING OR
TRANSFERRING MEMBER AND THE COMPANY TO LIABILITY.

Dated
as of March 28, 2007

TABLE
OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE 1

  	
   

  	
  DEFINITIONS

  	
   

  	
  2

  
	
  1.1

  	
   

  	
  Definitions

  	
   

  	
  2

  
	
  1.2

  	
   

  	
  Rules of Construction

  	
   

  	
  18

  
	
  1.3

  	
   

  	
  Terms Generally

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
  THE COMPANY AND ITS BUSINESS

  	
   

  	
  19

  
	
  2.1

  	
   

  	
  Continuation of the Company

  	
   

  	
  19

  
	
  2.2

  	
   

  	
  Company Name

  	
   

  	
  19

  
	
  2.3

  	
   

  	
  Term

  	
   

  	
  19

  
	
  2.4

  	
   

  	
  Filing of Certificate and Amendments

  	
   

  	
  19

  
	
  2.5

  	
   

  	
  Business; Scope of Members’ Authority

  	
   

  	
  19

  
	
  2.6

  	
   

  	
  Principal Office; Mailing Address; Registered Agent

  	
   

  	
  20

  
	
  2.7

  	
   

  	
  Names and Addresses of the Members

  	
   

  	
  20

  
	
  2.8

  	
   

  	
  Representations by the Members

  	
   

  	
  21

  
	
  2.9

  	
   

  	
  Control and Ownership of GHGP

  	
   

  	
  22

  
	
  2.10

  	
   

  	
  Control and Ownership of GKH

  	
   

  	
  23

  
	
  2.11

  	
   

  	
  OFAC and Patriot Act Compliance

  	
   

  	
  23

  
	
  2.12

  	
   

  	
  Indemnification

  	
   

  	
  24

  
	
  2.13

  	
   

  	
  Representations by the Company

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  	
  MANAGEMENT OF COMPANY BUSINESS; MAJOR DECISIONS

  	
   

  	
  25

  
	
  3.1

  	
   

  	
  Management and Control by the Managing Members

  	
   

  	
  25

  
	
  3.2

  	
   

  	
  Role of GHGP and Limitations on its Authority

  	
   

  	
  26

  
	
  3.3

  	
   

  	
  Management Agreements

  	
   

  	
  33

  
	
  3.4

  	
   

  	
  Acts of the Company and the Members

  	
   

  	
  33

  
	
  3.5

  	
   

  	
  Waiver of Rights by Non-Managing Members

  	
   

  	
  34

  
	
  3.6

  	
   

  	
  Sale of Property

  	
   

  	
  34

  
	
  3.7

  	
   

  	
  Purchase of Additional MLPC Property

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
  RIGHTS AND DUTIES OF MEMBERS; EVENTS OF DEFAULT

  	
   

  	
  38

  
	
  4.1

  	
   

  	
  Duties, Obligations and Compensation of Gengate

  	
   

  	
  38

  
	
  4.2

  	
   

  	
  Other Activities of the Members

  	
   

  	
  38

  
	
  4.3

  	
   

  	
  Indemnification

  	
   

  	
  38

  
	
  4.4

  	
   

  	
  Compensation of Members and their Affiliates;
  Goldman, Sachs & Co. as Exclusive Financial Advisor

  	
   

  	
  39

  
	
  4.5

  	
   

  	
  Dealing with Members

  	
   

  	
  40

  
	
  4.6

  	
   

  	
  Use of Company Property

  	
   

  	
  40

  
	
  4.7

  	
   

  	
  Designation of Tax Matters Member

  	
   

  	
  40

  
	
  4.8

  	
   

  	
  GKH and GHGP Rights Upon Default

  	
   

  	
  40

  
	
  4.9

  	
   

  	
  Events of Default

  	
   

  	
  41

  
	
  4.10

  	
   

  	
  Development Management Fee

  	
   

  	
  44

  
	
  4.11

  	
   

  	
  Marketing Rights of MLPC

  	
   

  	
  44

  
	
  4.12

  	
   

  	
  Residential Unit Sales Fee

  	
   

  	
  44

  
	
  4.13

  	
   

  	
  Sponsor Residential Space

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
  BOOKS AND RECORDS; REPORTS

  	
   

  	
  45

  
	
  5.1

  	
   

  	
  Books and Records

  	
   

  	
  45

  

 

 i
 

 

	
  5.2

  	
   

  	
  Availability of Books and Records; Return of Books
  and Records

  	
   

  	
  45

  
	
  5.3

  	
   

  	
  Reports and Statements; Annual Budgets and Business
  Plans

  	
   

  	
  45

  
	
  5.4

  	
   

  	
  Accounting Expenses

  	
   

  	
  46

  
	
  5.5

  	
   

  	
  Bank Account

  	
   

  	
  46

  
	
  5.6

  	
   

  	
  COGNOS Database

  	
   

  	
  47

  
	
  5.7

  	
   

  	
  Reportable Transactions

  	
   

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  	
  CAPITAL CONTRIBUTIONS, LOANS AND LIABILITIES

  	
   

  	
  47

  
	
  6.1

  	
   

  	
  Initial Capital Contributions and Initial Capital
  Accounts of the Members

  	
   

  	
  47

  
	
  6.2

  	
   

  	
  Capital Calls

  	
   

  	
  47

  
	
  6.3

  	
   

  	
  Failure to Fund Capital Contributions

  	
   

  	
  49

  
	
  6.4

  	
   

  	
  Dilution for Failure to Fund Capital Calls

  	
   

  	
  51

  
	
  6.5

  	
   

  	
  Capital of the Company

  	
   

  	
  51

  
	
  6.6

  	
   

  	
  Limited Liability of Members

  	
   

  	
  51

  
	
  6.7

  	
   

  	
  Dilution of MLPC

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  	
  CAPITAL ACCOUNTS, PROFITS AND LOSSES AND ALLOCATIONS

  	
   

  	
  52

  
	
  7.1

  	
   

  	
  Capital Accounts.

  	
   

  	
  52

  
	
  7.2

  	
   

  	
  Profits and Losses

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  	
  APPLICATIONS AND DISTRIBUTIONS OF AVAILABLE CASH

  	
   

  	
  56

  
	
  8.1

  	
   

  	
  Applications and Distributions

  	
   

  	
  56

  
	
  8.2

  	
   

  	
  Restoration of Excess Distributions

  	
   

  	
  58

  
	
  8.3

  	
   

  	
  Repayment of Member Loans

  	
   

  	
  59

  
	
  8.4

  	
   

  	
  Liquidation

  	
   

  	
  59

  
	
  8.5

  	
   

  	
  Limitations on Distributions

  	
   

  	
  59

  
	
  8.6

  	
   

  	
  Withholding Taxes

  	
   

  	
  59

  
	
  8.7

  	
   

  	
  Reimbursement

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
   

  	
  TRANSFER OF COMPANY INTERESTS

  	
   

  	
  60

  
	
  9.1

  	
   

  	
  Transfers of Interests by Members

  	
   

  	
  60

  
	
  9.2

  	
   

  	
  Assignment Binding on Company

  	
   

  	
  60

  
	
  9.3

  	
   

  	
  Substituted Members

  	
   

  	
  61

  
	
  9.4

  	
   

  	
  Acceptance of Prior Acts

  	
   

  	
  61

  
	
  9.5

  	
   

  	
  Additional Limitations

  	
   

  	
  61

  
	
  9.6

  	
   

  	
  Bring-Along Rights

  	
   

  	
  62

  
	
  9.7

  	
   

  	
  Tag-Along Rights

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
   

  	
  DISSOLUTION; WINDING UP AND DISTRIBUTION OF ASSETS

  	
   

  	
  62

  
	
  10.1

  	
   

  	
  Dissolution

  	
   

  	
  62

  
	
  10.2

  	
   

  	
  Winding Up

  	
   

  	
  63

  
	
  10.3

  	
   

  	
  Distribution of Assets

  	
   

  	
  63

  
	
  10.4

  	
   

  	
  Deemed Contribution and Distribution

  	
   

  	
  64

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
   

  	
  AMENDMENTS

  	
   

  	
  64

  
	
  11.1

  	
   

  	
  Amendments

  	
   

  	
  64

  
	
  11.2

  	
   

  	
  Additional Members

  	
   

  	
  64

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  64

  
	
  12.1

  	
   

  	
  Further Assurances

  	
   

  	
  64

  
	
  12.2

  	
   

  	
  Notices

  	
   

  	
  65

  

 

 ii
 

 

	
  12.3

  	
   

  	
  Headings and Captions

  	
   

  	
  65

  
	
  12.4

  	
   

  	
  Variance of Pronouns

  	
   

  	
  65

  
	
  12.5

  	
   

  	
  Counterparts

  	
   

  	
  65

  
	
  12.6

  	
   

  	
  Governing Law

  	
   

  	
  65

  
	
  12.7

  	
   

  	
  Consent to Jurisdiction

  	
   

  	
  66

  
	
  12.8

  	
   

  	
  Arbitration.

  	
   

  	
  66

  
	
  12.9

  	
   

  	
  Partition

  	
   

  	
  67

  
	
  12.10

  	
   

  	
  Invalidity

  	
   

  	
  67

  
	
  12.11

  	
   

  	
  Successors and Assigns

  	
   

  	
  67

  
	
  12.12

  	
   

  	
  Entire Agreement

  	
   

  	
  67

  
	
  12.13

  	
   

  	
  Waivers

  	
   

  	
  67

  
	
  12.14

  	
   

  	
  Maintenance as a Separate Entity

  	
   

  	
  67

  
	
  12.15

  	
   

  	
  Confidentiality.

  	
   

  	
  67

  
	
  12.16

  	
   

  	
  No Third Party Beneficiaries

  	
   

  	
  68

  
	
  12.17

  	
   

  	
  Power of Attorney.

  	
   

  	
  68

  
	
  12.18

  	
   

  	
  Construction of Documents

  	
   

  	
  69

  
	
  12.19

  	
   

  	
  Standards of Conduct for the Managing Members

  	
   

  	
  70

  
	
  12.20

  	
   

  	
  Partnership for Tax Purposes

  	
   

  	
  70

  
	
  12.21

  	
   

  	
  Time of Essence

  	
   

  	
  70

  

 

 iii
 

ANNEXES
AND SCHEDULES

	
  Annex
  A

  	
   

  	
  Description of RCK Property

  
	
  Annex B

  	
   

  	
  Description of Lease Tract

  
	
  Annex C

  	
   

  	
  Description of [*] Property

  
	
  Annex D

  	
   

  	
  Description of [*] Tract

  
	
  Annex E

  	
   

  	
  Description of [*] Tract

  
	
  Annex F

  	
   

  	
  Capital Improvement Program

  
	
  Schedule 2.9(a)

  	
   

  	
  Ownership Structure of GHGP

  
	
  Schedule 2.9(b)

  	
   

  	
  Organizational Documents of GHGP

  
	
  Schedule 2.10(a)

  	
   

  	
  Organizational Documents of GKH

  
	
  Schedule 2.10(b)

  	
   

  	
  Ownership Structure of GKH

  
	
  Schedule 2.13(b)

  	
   

  	
  Actions, Suits and Proceedings

  
	
  Schedule 3.4

  	
   

  	
  Representatives of Members

  
	
  Schedule 4.11

  	
   

  	
  Marketing Rights of MLPC

  
	
  Schedule 6.1

  	
   

  	
  Initial Capital Contributions

  
	
  Schedule 6.4

  	
   

  	
  Example of Dilution Calculation

  

 

 iv

CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED BASED UPON A
REQUEST FOR CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 OF THE

SECURITIES EXCHANGE ACT OF 1934 AND HAVE BEEN SEPARATELY FILED

WITH THE SECURITIES AND EXCHANGE COMMISSION

SECOND
AMENDED AND RESTATED

LIMITED
LIABILITY COMPANY AGREEMENT

OF

W2005
KAPALUA/GENGATE HOTEL HOLDINGS, L.L.C.

This
SECOND AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT, dated as of
March 28, 2007, by and between the following members of W2005 Kapalua/Gengate
Hotel Holdings, L.L.C. (the “Company”): (i) Whitehall Street Global Real
Estate Limited Partnership 2005, a Delaware limited partnership (“Whitehall
Street”); (ii) Whitehall Street Global Employee Fund 2005, L.P., a Delaware
limited partnership (“Whitehall Employee Fund”); (iii) Gengate Kapalua
Holdings GP, LLC, a Delaware limited liability company (“GHGP”) (iv)
Gengate Kapalua Holdings, LLC, a Delaware limited liability company (“GKH”);
and (v) MLP RCK, LLC, a Hawaii limited liability company (“MLPC”).

RECITALS

WHEREAS, the Company was formed as a limited liability company pursuant
to the Delaware Limited Liability Company Act (6 Del. C. Section 18-101, et seq.), as amended from time to time
(the “Act”), pursuant to a Certificate of Formation of the Company,
filed in the Office of the Secretary of State of the State of Delaware on
February 9, 2006;

WHEREAS, each of
Whitehall Street, Whitehall Employee Fund, GHGP and GKH entered into the
Limited Liability Company Agreement of the Company dated as of January 9, 2006
(the “Original LLC Agreement”);

WHEREAS, the Original LLC
Agreement was amended, superseded and restated in its entirety by the Amended
and Restated Limited Liability Company Agreement of the Company dated as of
March 13, 2006 (the “First Amended and Restated LLC Agreement”);

WHEREAS, the Company owns 100% of the limited liability company
interests in W2005 Kapalua/Gengate Hotel Mezzanine, L.L.C., a Delaware limited
liability company (“Kapalua Mezzanine”);

WHEREAS, Kapalua Mezzanine owns 100% of the limited liability company
interests in W2005 Kapalua/Gengate Hotel Senior Mezzanine, L.L.C., a Delaware
limited liability company (“Kapalua Senior Mezzanine”);

WHEREAS, Kapalua Senior Mezzanine owns 100% of the limited liability
company interests in W2005 Kapalua/Gengate Hotel Realty, L.L.C., a Delaware
limited liability company (“Kapalua/Gengate Realty”);

WHEREAS Kapalua/Gengate Realty is a party to
that certain Purchase and Sale Agreement, dated as of February 15, 2006, (the “RCK
Purchase Agreement”) by and among Kapalua/Gengate Realty, as buyer, and RCK
Hawaii, LLC, d/b/a RCK Hawaii – Maui, a Delaware limited liability company, as seller,
pursuant to which, Kapalua/Gengate Realty purchased the property commonly known
as The Ritz-Carlton Kapalua as more specifically described on Annex A hereto
(the “RCK Property”);

WHEREAS Kapalua/Gengate Realty is also a party
to that certain Sale, Purchase and Lease Termination Agreement, dated as of the
date hereof, by and among Kapalua/Gengate
Realty, as purchaser, the Company, and Maui Land & Pineapple Company, Inc.,
a Hawaii corporation that is the sole member of MLPC (“MLPC Parent”), as
seller (the “MLPC Lease Tract Purchase Agreement”) pursuant to which
Kapalua/Gengate Realty purchased the real property described on Annex B hereto
(the “Lease Tract”);

WHEREAS, the Company is also a party to that
certain [*] Agreement, dated as of the date hereof, by and among
Kapalua/Gengate Realty, as purchaser, the Company, and MLPC Parent, as seller
(the “[*] Agreement”) pursuant to which MLPC Parent granted
Kapalua/Gengate Realty (1) an [*] described on Annex C hereto (the “[*] Property”),
(2) an [*] described on Annex D hereto (the “[*] Tract”), and (3) a [*] described
on Annex E hereto (the “[*] Tract”);

WHEREAS, each of Whitehall
Street, Whitehall Employee Fund, GHGP and GKH desire to admit MLPC as a Member
and to amend and restate the First Amended and Restated LLC Agreement in its
entirety by entering into this Agreement with MLPC;

NOW, THEREFORE, the Members, by execution of this Agreement, do hereby
continue the Company as a limited liability company pursuant to the Act, upon
the following terms and conditions and hereby amend and restate the First
Amended and Restated LLC Agreement in its entirety as follows:

ARTICLE 1

DEFINITIONS

1.1                                 Definitions.  As used in this Agreement, the following
terms shall have the meanings set forth below:

“Act” shall have the meaning set forth in the Recitals.

“Additional Capital Contributions” shall have the meaning set
forth in Section 6.2.

“Adjusted Contribution” shall have the meaning set forth in
Section 6.4.

“Administrative Rights” shall mean any right of GHGP described
herein to take part in the governance, management, administration, operation or
control of the Company, including any right held by, or granted to, GHGP to
consent to, vote on or approve or otherwise participate in any action of the
Company, or to make any decision for, by or on behalf of the Company.

“Adverse Event” shall mean, with respect to any Person, the
occurrence of any Bankruptcy, any indictment or conviction of any crime, any
commission of fraud or any designation as a Specially Designated National or
Blocked Person.

“Affiliate” shall mean, with respect to any Person:  (i) any other Person that directly or
indirectly through one or more intermediaries controls or is controlled by or
is under common control with such Person; (ii) any other Person owning or
controlling ten percent (10%) or more of the outstanding voting securities of,
or other ownership interests in, such Person (or any other Person in which such
Person owns

 2
 

ten percent (10%) or more of the outstanding voting securities or
ownership interests); (iii) any officer, director, general partner or managing
member of such Person; and (iv) if such Person is an officer, director, general
partner or managing member of any Person, the Person for which such Person acts
in any such capacity.

“Agreement” shall mean this Second Amended and Restated Limited
Liability Company Agreement of the Company, as it may hereafter be amended or
modified from time to time.

“Annual Budget” shall mean the annual operating budget and
annual capital budget for the Company prepared by GHGP for approval pursuant to
Section 3.2(d)(5) and Section 5.3.

“Applicable Dilution Factor” shall mean (i) 1.5, with respect to
Additional Capital Contributions to fund (and payable pursuant to) Mandatory
Capital Calls and (ii) 1.0, with respect to Additional Capital Contributions
requested to be funded pursuant to Discretionary Capital Calls.

“Appointment Date” shall have the meaning set forth in Section
4.9(a)(v).

“Appraised Value” shall mean the dollar value determined by
agreement between the Whitehall Group and a Member or, failing such an
agreement prior to the Appointment Date, the determination of the value of the
Company Assets in accordance with the following procedure:

1.                                       The
Appraisers appointed by the Members in accordance with Section 4.9(a)(v) shall
each determine the value of the Company Assets (each, a “Valuation”) in
accordance with generally accepted professional appraisal standards and deliver
such determination in writing within thirty (30) days following the Appointment
Date.  The Whitehall Group and the
Defaulting Member shall each have the right to submit to those Appraisers
evidence with respect to value.

2.                                       If
the difference between the Valuations is less than an amount equal to five
percent (5%) of the lower Valuation, then the average of the Valuations shall
be the Appraised Value.

3.                                       If
the difference between the Valuations is greater than or equal to an amount
equal to five percent (5%) of the lower Valuation, then the Appraisers
appointed by the Members in accordance with Section 4.9(a)(5) shall appoint a
third Appraiser (the “Third Appraiser”) within ten (10) days after the
delivery of their respective Valuations. 
If the Appraisers appointed by the Members in accordance with Section
4.9(a)(v) cannot agree on a Third Appraiser within such time, then the
Whitehall Group and the Defaulting Member shall appoint a Third Appraiser within
ten (10) days thereafter.  If the
Whitehall Group and the Defaulting Member cannot agree on a Third Appraiser
within such time, then, upon the application of either party within five (5)
days thereafter, the Third Appraiser shall be selected by or on behalf of the
President of the Appraisal Institute upon the application of either party, who
shall be instructed to select the Third Appraiser within ten (10) days.

4.                                       The
Third Appraiser’s Valuation shall be the Appraised Value unless such Valuation
is higher than the highest Valuation of the Appraisers appointed by the Members
in accordance with Section 4.9(a)(v) or lower than the lowest Valuation of the
Appraisers appointed by the Members in accordance with Section 4.9(a)(v), in
which case the Appraised Value shall be such highest or lowest Valuation of the
Appraisers appointed by the Members in accordance with Section 4.9(a)(v), as
applicable.

 3
 

5.                                       If
any Appraiser appointed by the Members in accordance with Section 4.9(a)(v) or
the Third Appraiser becomes unable or unwilling to provide a Valuation, a
successor Appraiser shall be appointed in the same manner as the Person who is
unwilling or unable to perform.

6.                                       In
the event an Appraiser shall not deliver a Valuation within the time required
herein, then the Valuation of the Appraiser who delivers a Valuation first
shall be the Appraised Value.

“Appraiser” shall mean a certified member of the Appraisal
Institute with a national practice who has at least ten (10) years’ standing
and established experience in appraising hospitality properties in Hawaii.

“Approved Budget” shall mean the Annual Budget for the Budget
Year in question, in each case as approved in accordance with the provisions
hereof and as any of the same may be amended from time to time in accordance
with the provisions of this Agreement.

“Asset Manager” shall mean Gencom Asset Management Company,
L.P., a Texas limited partnership.

“Asset Management Agreement”, any asset management agreement,
entered into on or after the date of the First Amended and Restated LLC
Agreement, between the Company and/or any Subsidiary, on the one hand, and the
Asset Manager or any other Affiliate of either of the Gengate Members or any of
the Gengate Principals, on the other.

“Available
Capital Event Proceeds” shall mean the proceeds of a Capital Event after
deducting reasonable and/or customary expenses the Company or any Subsidiary
incurred in connection therewith.

“Available Cash Flow” shall
mean, for any specified period, the excess, if any, of

(A)                              the sum of (i) all cash receipts (other than
Available Capital Event Proceeds) of the Company and the Subsidiaries during
such period from whatever source, including receipts from the sale of
one or more dwelling units and/or residential units from dwelling and/or residential
development by the Company or a Subsidiary of the [*] Tract, the [*] Tract or
the [*] Site and (ii) any working capital and
reserves of the Company and the Subsidiaries existing at the start of such
period, less

(B)                              the sum of (i) all cash amounts paid or payable
(without duplication) in such period on account of any expenses of any type
whatsoever (including capital expenditures, operating expenses, fees due and
payable under the Property Management Agreement, the Asset Management Agreement
and this Agreement, taxes, amortization or other payments of principal and
interest on any debt of the Company and the Subsidiaries, expenses incurred in
connection with the satisfaction of any refinancing of the Property, the [*]
Site, the [*] Tract or Company Assets) other than expenses taken into account
in determining Available Capital Event Proceeds and (ii) any cash reserves that
are required to be funded by the terms of any Property Debt or that the
Managing Members (acting pursuant to Section 3.2(d)) reasonably determine may
be

 4
 

required
for the working capital, capital expenditures and future needs of the Company
and the Subsidiaries or, if the Managing Members have not yet made that
determination for that period, an amount equal to (x) one hundred five percent
(105%) of the amounts required for the working capital and capital expenditures
of the Company and the Subsidiaries as set forth in the Company’s Approved
Budget with respect to such period, or (y) if greater, the amount of reserves
for working capital held by the Company and the Subsidiaries on the first day
of such period (net, in each case, of the Company’s projected income for the
relevant period).

“Award” shall mean any compensation paid by any Governmental
Authority in connection with a Condemnation in respect of all or any part of
the Property.

“Bankruptcy” shall mean, with respect to the affected party: (i)
the entry of an Order for Relief under the Bankruptcy Code; (ii) the admission
by such party of its inability to pay its debts as they mature; (iii) the
making by it of an assignment for the benefit of creditors; (iv) the filing by
it of a petition in bankruptcy or a petition for relief under the Bankruptcy
Code or any other applicable federal or state bankruptcy or insolvency statute
or any similar law; (v) the expiration of sixty (60) days after the filing of
an involuntary petition under the Bankruptcy Code; or an involuntary petition
seeking liquidation, reorganization, arrangement or readjustment of its debts
under any other federal or state insolvency law, provided that the same shall not have been vacated, set
aside or stayed within such (60) sixty-day period; (vi) an application by such
party for the appointment of a receiver for the assets of such party; or (viii)
the imposition of a judicial or statutory lien on all or a substantial part of
its assets unless such lien is discharged or vacated or the enforcement thereof
stayed within sixty (60) days after the effective date of such lien.  With respect to a Member, the foregoing
definition of “Bankruptcy” is intended to replace and shall supersede and
replace the definition of “Bankruptcy” set forth in Section 18-101(1) and
18-304 of the Act.

“Bankruptcy Code” shall mean Title 11 of the United States Code,
as amended.

“Book Value” shall mean, with respect to any Company Asset, its
adjusted basis for federal income tax purposes, except that the initial Book
Value of any asset contributed by a Member to the Company shall be an amount
equal to the agreed gross fair market value of such asset, and such Book Value
shall thereafter be adjusted in a manner consistent with Treasury Regulations
Section 1.704-l(b)(2)(iv)(g) for revaluations pursuant to Section 7.1(b) and
for the Depreciation taken into account with respect to such asset.

“Budget Year” shall mean (i) the period beginning on the
Effective Date and ending on December 31, 2006 and (ii) any successive yearly
period (beginning January 1 and ending December 31) thereafter.

“Business Day” shall mean a day upon which banks in the City of
New York are authorized or required by law to be closed.

“Business Plan” shall mean, with respect to each Budget Year,
the Approved Budget for such Budget Year in effect together with the annual
strategic plan prepared by GHGP and approved in accordance with Section 3.2(d)
of this Agreement for such Budget Year (as the same may be modified in
accordance with the terms hereof).

 5
 

“Capital Account” shall mean, when used in respect of any
Member, the Capital Account maintained for such Member in accordance with Section
7.1, as said Capital Account may be increased or decreased from time to time
pursuant to the terms of this Agreement.

“Capital Call” shall mean any Mandatory Capital Call or
Discretionary Capital Call, delivered in accordance with Section 6.2 hereof, requesting
Additional Capital Contributions, which Mandatory Capital Call or Discretionary
Capital Call shall state (x) the total amount of Additional Capital
Contributions required to be made by all Members and (y) each Member’s pro rata share of such total Additional
Capital Contributions based on such Member’s Percentage Interest.

“Capital Contribution” shall mean, when used with respect to any
Member, the aggregate amount of capital contributed or deemed contributed to
the Company by such Member in accordance with Article 6 (including such Member’s
Initial Capital Contribution and any Additional Capital Contributions made by
such Member).

“Capital
Event” shall mean (i) a financing or refinancing (in whole or in part, and
including any refinancing effected by amendment or modification of an existing
financing) by the Company or any of its Subsidiaries of the Property Debt, (ii)
a sale or other disposition of the Property or (after acquisition thereof by
the Company or a Subsidiary) the [*] Site or [*] Tract, or any portion thereof
(other than items of personal property in the ordinary course of business but
including, without limitation, a sale in foreclosure) by the Company or any of
its Subsidiaries or of the Company’s interests in any of the Subsidiaries or
(iii) the receipt by the Company or any of its Subsidiaries of Insurance
Proceeds (other than business interruption insurance) or an Award, to the
extent not used to rebuild or restore the Property, [*] Site or [*] Tract;
provided, however, that (A) a new financing or refinancing of any debt incurred
by the Company or one or more of the Subsidiaries for purposes of construction
activity at the Property, the [*] Tract, the [*] Tract and/or the [*] Tract
shall not constitute a Capital Event and (B) the sale of a dwelling unit and/or
residential unit from dwelling and/or residential development by the Company or
a Subsidiary of the [*] Tract, the [*] Tract or the [*] Site shall not
constitute a Capital Event.

“Capital Improvements Budget” shall mean a detailed budget for
the Capital Improvement Program of the Property.  Any change, modification or reallocation to
or within the Capital Improvement Budget may be made only with the consent of
the Capital Members.

“Capital Improvement Program” shall mean the capital
improvements, deferred maintenance, environmental remediation, expansion,
modification and other work described in more detail in Annex F hereto, as such
schedule may be modified from time to time with the consent of the Capital
Members.

“Capital Member” shall mean each of Whitehall Street, Whitehall
Employee Fund, GKH, MLPC and any transferees of the foregoing permitted
hereunder, but only so long as any such Person continues in its capacity as a
equity member in the Company; and “Capital Members” shall mean each
Person described as a Capital Member, collectively.

“Certificate” shall mean the Certificate of Formation of the
Company filed with the Secretary of State of the State of Delaware on February
9, 2006.

“Closing Period” shall have the meaning set forth in Section
3.6(c).

“Code” shall mean the Internal Revenue Code of 1986, as amended,
or any corresponding provision(s) of succeeding law.

 6
 

“Company” shall mean W2005 Kapalua/Gengate Hotel Holdings,
L.L.C., a Delaware limited liability company, as said Company may from time to
time be hereafter constituted.

“Company Assets” shall mean all right, title and interest of the
Company in and to all or any portion of the assets of the Company, any property
(real, personal, tangible or intangible) or estate acquired in exchange
therefor, including specifically 100% of the equity interests in Kapalua
Mezzanine.

“Company Loan” shall have the meaning set forth in Section
6.2(c).

“Condemnation” shall mean a temporary or permanent taking by any
Governmental Authority, as the result or in lieu or in anticipation of the
exercise of the right of condemnation or eminent domain, of all or any part of
the Property or any interest therein or right accruing thereto, including any
right of access thereto or any change of grade affecting the Property or any
part thereof.

“Confidential Information” shall have the meaning set forth in
Section 12.15.

“Contributing Member” shall have the meaning set forth in
Section 6.3.

“Control” shall mean, when used with respect to any Person, the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities or other voting
interests, by contract or otherwise, and the terms “controlling” and “controlled”
shall have the meanings correlative to the foregoing.

“Credit Enhancement Fee” shall have the meaning set forth in
Section 4.4(a).

“Debtor Member” shall have the meaning set forth in Section 8.3.

“Deemed Distribution” shall have the meaning set forth in
Section 8.6.

“Default Notice” shall have the meaning set forth in Section
4.8(a).

“Default Purchase Notice” shall have the meaning set forth in
Section 4.9(a)(i).

“Default Purchase Price” shall have the meaning set forth in
Section 4.9(a)(ii).

“Default Rate” shall mean a rate of interest (compounded
monthly) equal to the lesser of (i)
the greater of (x) a fluctuating
rate of interest at fifteen percent (15%) per annum in excess of the prime rate
of interest publicly announced by Citibank, N.A. or its successors from time to
time and (y) twenty-five percent
(25%) per annum and (ii) the
maximum rate permitted by applicable law. 
Notwithstanding the foregoing, the Default Rate on a Member Loan made to
a Member who fails to fund a Discretionary Capital Call or on a Company Loan
made in connection with a Discretionary Capital Call shall mean a rate of
interest (compounded monthly) equal to the
lesser of (i) the greater of (x)
a fluctuating rate of interest at five percent (5%) per annum in excess of the
prime rate of interest publicly announced by Citibank, N.A. or its successors
from time to time and (y) fifteen
percent (15%) per annum and (ii)
the maximum rate permitted by applicable law.

“Delaware Court” shall have the meaning set forth in Section
12.7.

“Depreciation” shall mean, with respect to any Fiscal Year, all
non-cash deductions allowable under the Code, including all deductions
attributable to depreciation or cost recovery with respect to Company Assets,
including any improvements made thereto and any tangible personal property
located

 7
 

therein, or amortization of the cost of any intangible property or
other assets acquired by the Company, which have a useful life exceeding one
year; provided, however, that with respect to any Company
Asset whose tax basis differs from its Book Value at the beginning of such
Fiscal Year or other period, Depreciation shall be an amount which bears the
same ratio to such beginning Book Value as the depreciation, amortization or
other cost recovery deduction for such period with respect to such asset for
federal income tax purposes bears to its adjusted tax basis as of the beginning
of such Fiscal Year; provided, however, that if the federal income tax
depreciation, amortization or other cost recovery deduction for such Fiscal
Year is zero, Depreciation shall be determined using any reasonable method
selected by the Managing Members.

“[*] Agreement”
shall have the meaning ascribed to it in the MLPC Lease Tract Purchase
Agreement.

“Development Management Fee”  shall have the meaning set forth in Section
4.10.

“Discretionary Capital Call” shall
have the meaning set forth in Section 6.2.

“Dispute Notice” shall have the
meaning set forth in Section 4.8(a).

“Effective Date” shall mean the date
hereof.

“Electing Non-Triggering Party” shall
have the meaning set forth in Section 3.6(d).

“Election
Period” shall have the meaning set forth in Section 3.6(b).

“Environmental
Guaranty Payment” shall have the meaning set forth in Section 6.2(e).

“ERISA” shall mean the Employee Retirement Income Security Act
of 1974 (or any successor legislation thereto), as amended from time to time.

“[*] Sale and Purchase Agreement” shall have the meaning set
forth in the [*] Agreement.

“[*] Tract”
shall have the meaning ascribed to it in the Recitals.

“[*] Preferred Return”
shall mean an amount equal to $[*] of saleable residential space
developed by Kapalua/Gengate Realty on the [*] Tract entitled with the [*] and
a [*] in excess of [*] of saleable residential space, payable
in accordance with Section 8.1 from MLPC Residential Cash flow attributable
to dwelling and/or residential development by the Company or a Subsidiary of
the [*] Tract.  This is not intended to
be a guaranteed payment within the meaning of Code § 707.

“Event of Default” shall mean the occurrence of any one or more
of the following events:

1.                                       the gross negligence, fraud, defalcation (other than
a mere failure to meet an obligation that does not involve the misappropriation
of funds) or willful misconduct by the Asset Manager under or in connection
with  the occurrence, after the
expiration, without cure, of any applicable cure period, of any event (other
than a sale of the Property ) that would permit the termination by the Company
of the Asset Management Agreement;

 8
 

2.                                       the gross negligence, fraud, defalcation (other than
a mere failure to meet an obligation that does not involve the misappropriation
of funds) or willful misconduct by GHGP, 
GKH or any Gengate Principal in carrying out its duties and obligations
under or in connection with, or a material breach by GHGP, GKH or any Gengate
Principal of or under, this Agreement;

3.                                       any criminal indictment or conviction with respect to
(x) GHGP or GKH, (y) any Gengate Principal or any of the representatives of
Gengate listed on Schedule 3.4 or (z) any other officer, director,
general partner or managing member of GHGP or GKH or any Affiliate of GHGP or
GKH (if such officer, director, general partner or managing member is involved
in the management of the Property); provided, however, that in the event that
that an Event of Default is triggered pursuant to clause (z) above, if such
officer, director, general partner or managing member is terminated within
twenty-four (24) hours of the indictment or conviction and the Company is
reimbursed within ten (10) business days by GHGP or GKH for any damages the
Company has incurred as a result of any actions of such person, such criminal
indictment or conviction shall not be deemed an Event of Default;

4.                                       the occurrence of any Bankruptcy with respect to GHGP
or GKH; or

5.                                       the failure of GKH to fund any Mandatory Capital Call
made pursuant to Section 6.2(a)(i) or Section 6.2(a)(ii).

For purposes of (2)  above,
except as otherwise specified in this Agreement, to the extent any event or
circumstance constitutes a breach of this Agreement, such event or circumstance
shall not constitute an “Event of Default” until notice of such event or
circumstance shall have been delivered to GHGP or GKH in accordance with
Section 12.2 and such event or circumstance shall be unremedied on the date
that is: (i) twenty (20) days after delivery of such notice to GHGP or GKH, as
applicable, for any non-monetary default (or if such remedy, notwithstanding
the exercise of diligent efforts by GHGP or GKH, as applicable, cannot
reasonably be effected within such twenty (20)-day period, such longer period
as may be required to effect the same with the exercise of diligent, good faith
efforts, but in no event longer than the
first to occur of: (x) the date ninety (90) days from the initial
delivery of notice to GHGP or GKH, and
(y) the end of the cure period provided pursuant to the terms of any applicable
Loan Agreement or other agreement between the Company and any third party; provided that such longer period shall not
be available (and an Event of Default shall be deemed to have occurred on the
20th day) if such non-monetary default has or is reasonably likely to have a
material adverse effect on the Company) and (ii) five (5) days after delivery
of such notice to GHGP or GKH for any monetary default.  Furthermore, with respect to (1) or (2)
above, if the Asset Manager, GHGP or GKH take any action or fail to take any
action that would otherwise constitute an Event of Default triggered solely by
such entity’s gross negligence and if the damages incurred by the Company or
any of its Members as a result of the gross negligence can be cured by a
monetary payment, the Asset Manager, GHGP and GKH, collectively, shall have the
right, not more than twice over the term of the Company,  to cure such Event of Default by making,
within ten (10) Business Days after the occurrence of such gross negligence, a
monetary payment to the party that incurred such damages in an amount equal to
such damages; provided, however, that upon the third such occurrence of gross
negligence by any of the Asset Manager, GHGP or GKH (or any combination of
them) such event shall constitute an Event of Default and shall not be subject
to cure.

“Failed Contribution” shall have the meaning set forth in
Section 6.3.

“First Amended and Restated LLC Agreement” shall have the
meaning set forth in the Recitals.

 9
 

“Fiscal Year” shall mean the fiscal year of the Company, which
shall be the calendar year; but provided
that the first “Fiscal Year” shall be the period from March 13, 2006 until
December 31, 2006 and upon termination of the Company, “Fiscal Year”
shall mean the period from the end of the last preceding Fiscal Year to the
date of such termination.

“Funded Portion” shall have the meaning set forth in Section
6.3(a).

“Gengate Actual Promote” shall mean with respect to each
distribution made hereunder, the amount distributed to Gengate Members less the
amount that would have been distributed had such distribution been made on a
pro rata basis to all Capital Members in accordance with the Members’
Percentage Interests in effect at the time of such distribution.

“Gengate Guarantor”  shall
mean (i) Karim Alibhai, (ii) Mahmood Khimji, and (iii) each other member of
GHGP.  For avoidance of doubt, if any
Person shall hereafter become a member of GHGP, such Person shall execute this
Agreement as a Gengate Guarantor for purposes of Section 8.2.

“Gengate Members” shall mean, collectively, GHGP and GKH; and “Gengate
Member” shall mean each of GHGP and GKH.

“Gengate Principals” shall mean, collectively, Karim Alibhai and
Mahmood Khimji and such other Persons as may be approved in writing by
Whitehall Street or Whitehall Employee Fund (in its discretion) from time to
time.

“GHGP” shall have the meaning set forth in the Preamble.

“GKH” shall have the meaning set forth in the Preamble.

“Governmental Authority” shall mean any court, board, agency,
commission, office, central bank or other authority of any nature whatsoever
for any governmental unit (federal, State, county, district, municipal, city,
country or otherwise) or quasi-governmental unit whether now or hereafter in
existence.

“Gross Operating Profits” shall have the meaning set forth in
the Property Management Agreement.

“Gross
Revenues” shall have the meaning set forth in the Property Management
Agreement.

“[*]  Tract” shall have the meaning ascribed to
it in the Recitals.

“[*]  Preferred Return” shall mean an amount
equal to $[*] of saleable residential space developed by Kapalua/Gengate Realty
on the [*] Tract entitled with the [*] and a [*], payable
in accordance with Section 8.1 from MLPC Residential Cash flow attributable
to dwelling and/or residential development by the Company or a Subsidiary of
the [*] Tract.  This is not intended to
be a guaranteed payment within the meaning of Code § 707.

“Hotel”
shall have the meaning given to such term in the MLPC Lease Tract Purchase Agreement.

“Improvement Letter of Credit
Reimbursement Agreement” shall mean that reimbursement agreement between
one or more Members or Affiliates of the Whitehall Group on one hand, and the bank
or banks issuing the Improvement Letter of Credit on the other (which agreement
may be a separate agreement relating solely to such letter of credit or a
credit facility agreement relating to such letter of credit as well as other
extensions of credit).

 10
 

“Initial Capital Contribution” shall
mean, with respect to any Member, the aggregate initial capital contribution
made, deemed made or to be made by such Member as of the Effective Date
pursuant to Section 6.1 as shown on Schedule 6.1.

“Insurance Proceeds” shall mean the
proceeds of any policy of property or title insurance.

“Interest” shall mean the entire
limited liability company interest of a Member in the Company at any particular
time, including the right of such Member to any and all benefits to which a
Member may be entitled as provided in this Agreement, together with the
obligations of such Member to comply with all the terms and provisions of this
Agreement.

“Internal Rate of Return” shall mean,
with respect to an investment, the discount rate that would cause the net
present value of all cash inflows (i.e.,
Capital Contributions) relating to such investment and all cash out-flows (i.e., distributions from the Company to
the Members making such Capital Contributions on account of such investment
(whether from operating cash flow or capital transaction proceeds) to be equal
to zero dollars ($0).  A Member shall be
deemed to have received a specified Internal Rate of Return, with respect to
any Capital Contributions, when such Member has received a return of all such
Capital Contributions made by such Member plus
a cumulative, annually compounded, return on such Capital Contributions at the
specified rate per annum calculated commencing on the date such Capital
Contributions are made and compounded annually to the extent not paid on a
current basis, taking into account the timing and amounts of all previous
distributions of Available Cash Flow and Available Capital Event Proceeds made
by the Company to such Member and the timing and amounts of all previous
Capital Contributions made to the Company by such Member.  For purposes of computing such Internal Rate
of Return, (i) all cash in-flows and cash out-flows will be discounted to
present value using monthly measuring periods, (ii) any distribution of
Available Cash Flow and Available Capital Event Proceeds received by a Member,
or any Capital Contribution made by a Member, in either case at any time during
a particular month, shall be deemed to be received or made (as applicable) by
such Member on the first day of such month, (iii) amounts received by a Member
on account of a Company Loan made by such Member and Capital Contributions
returned to any Member pursuant to Section 6.2(c) hereof shall be disregarded
in calculating such Member’s Internal Rate of Return and shall not be deemed to
be a distribution, (iv) amounts received by a Lender Member on account of a
Member Loan from distributions that otherwise would have been made to the
Debtor Member shall be deemed received by the Debtor Member and not the Lender
Member for purposes of calculating the Internal Rate of Return and (v) amounts
received by a Member or its Affiliates as Credit Enhancement Fees shall be
disregarded.

“Investment” shall mean, relative to
any Person (i) any loan or advance made by such Person to any other Person
(excluding advances made to officers and employees in the ordinary course of
business); (ii) the purchase by such Person of any debt obligation of any other
Person; (iii) any contingent liability of such Person; and (iv) any ownership
or similar interest held by such Person in any other Person.

“IRS” shall mean the Internal Revenue
Service and any successor agency or entity thereto.

“Kapalua Mezzanine” shall have the
meaning set forth in the Recitals.

“Kapalua/Gengate Realty” shall have
the meaning set forth in the Recitals.

“Kapalua Senior Mezzanine” shall have
the meaning set forth in the Recitals.

 11
 

“Lease Tract” shall have the meaning
set forth in the Recitals.

“Lender Member” has the meaning set
forth in Section 8.3.

“List” shall mean the Specially
Designated Nationals and Blocked Persons List maintained by the Office of
Foreign Assets Control, Department of the Treasury, and/or on any other similar
list maintained by the Office of Foreign Assets Control pursuant to any authorizing
statute, executive order or regulation.

“Loan Agreements” shall mean those
loan agreements, mortgages, pledges, guaranties and the like secured by the
Company Assets, the Property or by which the Company is bound, whether now
existing or hereafter entered into.

“Loan Guaranty” shall mean a partial
or full guaranty of principal and/or interest in respect of any loan, a
guaranty of cost overruns or debt service or any other guaranty or assurance of
payment provided by a Member or its Affiliates to a lender.  For the avoidance of doubt, any agreement to
reimburse a bank that issues a letter of credit to or for the benefit of the
lender should be deemed to be a Loan Guaranty, but excluding any guaranty of
non-recourse carve-outs.

“Losses” shall have the meaning set
forth in Section 7.2.

“Major Decision” shall have the
meaning set forth in Section 3.1(a).

“Management Agreements” shall have the
meaning set forth in Section 3.3.

“Managing Members” shall mean initially, Whitehall
Street, Whitehall Employee Fund and GKH; provided, that if there is an Event of
Default, the Managing Members shall mean Whitehall Street and Whitehall
Employee Fund.

“Mandatory Capital Call” shall have the meaning set forth in
Section 6.2(a).

“Mandatory Capital Call Threshold” shall mean $35,000,000,
inclusive of the Capital Contributions funded through the Effective Date; provided, that if the Company or any of
its Subsidiaries enters into any future transactions that require the Capital
Members to contribute additional capital into the Company or to provide a Loan
Guaranty, the “Mandatory Capital Call Threshold” shall be increased by an
amount equal to such capital contribution and/or Loan Guaranty.

“Marketing Period” shall have the meaning set forth in Section
3.6(c).

“Material Action” shall have the meaning set forth in Section
13.1(b).

“Material Contract” shall mean any contract pursuant to which
the Company is obligated to pay or expend more than $100,000 in any Fiscal Year
or more than $250,000 in the aggregate, or to perform, or to engage a third
party or an Affiliate of GHGP or GKH to perform, material construction,
renovation or remodeling work on the Property.

“Member” shall mean each of Whitehall Street, Whitehall Employee
Fund, GHGP, GKH, MLPC and any transferees of the foregoing permitted hereunder,
but only so long as any such Person continues in its capacity as a equity
member in the Company; and “ Members” shall mean each Person described
as a Member, collectively.

 12
 

“Member-Funded Debt” shall mean any non-recourse debt of the
Company that is loaned or guaranteed by any Member and/or is treated as Member
non-recourse debt with respect to a Member under Treasury Regulations Section
1.704-2(b)(4).

“Member Loan” shall have the meaning set forth in Section
6.3(b).

“Minimum Gain” shall mean an amount equal to the excess of the
principal amount of debt, for which no Member is liable (“nonrecourse debt”),
over the adjusted basis of the Company Assets which represents the minimum
taxable gain that would be recognized by the Company if the nonrecourse debt
were foreclosed upon and the Company Assets were transferred to the creditor in
satisfaction thereof, and which is referred to as “minimum gain” in Treasury
Regulations Section 1.704-1(b)(4)(iv).  A
Member’s share of Minimum Gain shall be determined pursuant to Treasury
Regulations Section 1.704-2.

“MLPC” shall have the meaning set forth in the Preamble.

“MLPC Advance Capital Amount” shall mean an amount equal to
$4,090,909 minus an amount equal to MLPC’s pro rata
portion (based on the Percentage Interest of each Capital Member) of Mandatory
Capital Calls made and funded by the Capital Members (other than MLPC) in
accordance with Section 6.2 after the Effective Date.  For example, if there is a $5,000,000
Mandatory Capital Call after the Effective Date, an amount equal to MLPC’s pro
rata portion of that Mandatory Capital Call amount is $1,071,430 and from and
after the date such Mandatory Capital Call is funded by all Capital Members
(other than MLPC) the MLPC Advance Capital Amount will be $3,019,479 [which is
$4,090,909 minus $1,071,430].

“MLPC Advance Capital Amount Return” shall mean the actual
interest or other earnings on the MLPC Advance Capital Amount invested by the
Company as directed by MLPC in its discretion, during the particular period for
which such amount is used in a calculation.

“MLPC Capital Preferred Return” shall mean an amount equal to
(i) the MLPC Advance Capital Amount Return, multiplied times (ii) the MLPC Advance
Capital Amount as of the Quarterly Payment Date preceding the date on which the
MLPC Capital Preferred Return is to be paid; provided, however, that in the
case of the first payment of MLPC Capital Preferred Return, the interest rate
and the MLPC Advance Capital Amount shall be determined as of the Effective
Date.

“MLPC Event of Default” shall mean the occurrence of any one or
more of the following events:

6.                                       the
gross negligence, fraud, defalcation (other than a mere failure to meet an
obligation that does not involve the misappropriation of funds) or willful
misconduct by MLPC in carrying out its duties and obligations under or in
connection with, or a material breach by MLPC of or under, this Agreement;

7.                                       the
occurrence of any Bankruptcy with respect to MLPC or MLPC Parent;

8.                                       the
failure of MLPC to fund any Mandatory Capital Call made pursuant to Section
6.2(a)(i) or Section 6.2(a)(ii) which it is obligated to fund; or

9.                                       a default or event of default by MLPC Parent under
the MLPC Lease Tract Purchase Agreement, the [*] Agreement or the [*] Sale and
Purchase Agreement or [*] Tract Sale and Purchase Agreement.

 13
 

For purposes of (1)  above,
except as otherwise specified in this Agreement, to the extent any event or
circumstance constitutes a breach of this Agreement, such event or circumstance
shall not constitute a “MLPC Event of Default” until notice of such event or
circumstance shall have been delivered to MLPC in accordance with Section 12.2
and such event or circumstance shall be unremedied on the date that is: (i)
twenty (20) days after delivery of such notice to MLPC for any non-monetary
default (or if such remedy, notwithstanding the exercise of diligent efforts by
MLPC cannot reasonably be effected within such twenty (20)-day period, such
longer period as may be required to effect the same with the exercise of
diligent, good faith efforts, but in no event longer than the first to occur of: (x) the date ninety
(90) days from the initial delivery of notice to MLPC, and (y) the end of the cure period
provided pursuant to the terms of any applicable Loan Agreement or other
agreement between the Company and any third party; provided that such longer period shall not be available (and
a MLPC Event of Default shall be deemed to have occurred on the 20th day) if
such non-monetary default has or is reasonably likely to have a material
adverse effect on the Company) and (ii) five (5) days after delivery of such
notice to MLPC for any monetary default. 
Furthermore, with respect to (1) above, if MLPC takes any action or
fails to take any action that would otherwise constitute a MLPC Event of
Default triggered solely by such entity’s gross negligence and if the damages
incurred by the Company or any of its Members as a result of the gross
negligence can be cured by a monetary payment, MLPC shall have the right, not
more than twice over the term of the Company, 
to cure such MLPC Event of Default by making, within ten (10) Business
Days after the occurrence of such gross negligence, a monetary payment to each
party that incurred such damages in an amount equal to such damages; provided,
however, that upon the third such occurrence of gross negligence by MLPC, such
event shall constitute a MLPC Event of Default and shall not be subject to cure
in accordance with this sentence.

“MLPC Parent” shall mean Maui Land & Pineapple Company,
Inc., a Hawaii corporation that is the sole member of MLPC.

“Lease Tract” shall have the meaning set forth in the Recitals.

“MLPC Lease Tract Purchase Agreement” shall have the meaning set
forth in the Recitals.

“MLPC Preferred Returns” shall mean the [*] Preferred Return, [*]
Preferred Return and the [*] Preferred Return.

“MLPC Residential Development Cash Flow” shall mean Available
Cash Flow, Available Capital Event Proceeds, without reduction for MLPC
Preferred Returns or [*] Minimum Return (if any), attributable to dwelling
and/or residential development by the Company or a Subsidiary of, and
calculated separately for, each of (i) the [*] Site, (ii) the [*] Tract, and
(iii) the [*] Tract.

“Necessary Expenditures” shall mean all costs, expenditures or
amounts required to be expended, whether or not of a recurring nature, that
relate to the Property, the [*] Site or the [*] Tract, or to an existing
Company Asset and that a Member determines (i) are provided for in an Approved
Budget, (ii) are necessary for real estate taxes, insurance payments, costs of
restoring the assets of the Company or a Subsidiary after a casualty or
condemnation thereof, utility costs, costs of compliance with law, payments
with respect to mortgages and other liens, payments on or of operating expenses
of the Company or a Subsidiary (including any fees due and payable to the
Property Manager pursuant to the Property Management Agreement or any successor
property manager pursuant to a successor property management agreement or to
the Asset Manager pursuant to the Asset Management Agreement or any successor
asset manager pursuant to a successor asset management agreement), and any
other items that are of a comparable nature to repair, preserve, maintain or
protect the assets of the Company or a Subsidiary or (iii) are necessary to
make payments on or of contractual obligations and

 14
 

debts of the Company or a Subsidiary (including amounts, if any, owing
to any Member or Affiliate thereof to reimburse payments made by such Member or
Affiliate on account of the Company’s or a Subsidiary’s debts or on account of
guarantees of or relating to such debts).

“New York Court” has the meaning set forth in Section 12.7.

“Non-Contributing Member” shall have the meaning set forth in Section
6.3.

“Non-Managing Members” shall mean all of the Members other than
the Managing Members.

“Non-Triggering Party” shall have the meaning set forth Section
3.6(a).

“Objection Notice” shall have the meaning set forth in Section
5.3(b).

“[*] Agreement” shall have the meaning set forth in the
Recitals.

“Original LLC Agreement” shall have the meaning set forth in the
Recitals.

“Organizational Document” shall mean, with respect to any
Person: (i) in the case of a corporation, such Person’s certificate of incorporation
and by-laws, and any shareholder agreement, voting trust or similar arrangement
applicable to any of such Person’s authorized shares of capital stock; (ii) in
the case of a limited partnership, such Person’s certificate of limited
partnership, limited partnership agreement, voting trusts or similar
arrangements applicable to any of its partnership interests; (iii) in the case
of a limited liability company, such Person’s certificate of formation, limited
liability company agreement or other document affecting the rights of holders
of limited liability company interests; or (iv) in the case of any other legal
entity, such Person’s organizational documents and all other documents
affecting the rights of holders of equity interests in such Person.

“Percentage Interest” shall mean as of any date with respect to
any Member, (i) initially the percentage following such Member’s name in
Section 6.1(b) and (ii) thereafter the percentage obtained when such Member’s
Capital Contribution (or Adjusted Contribution if there was previously a
dilution under Section 6.4) is divided by the
aggregate Capital Contributions of all Members, as such percentage interest may
be adjusted from time to time pursuant to the terms of Article 6.

“Permitted Gengate Transferee” shall mean (i) any entity at
least eighty-five percent (85%) owned and exclusively controlled by Karim
Alibhai or Mahmood Khimji, (ii) any members of the immediate family (i.e.,
spouses, parents, aunts, uncles, brothers, sisters or children) of Karim Alibhai
or Mahmood Khimji, (iii) trusts established for the benefit of the individuals
identified in clause (ii), or (iv) any combination of the foregoing

“Permitted MLPC Transferee” shall mean a Person with respect to
which MLPC Parent shall directly or indirectly own at least 51% of the
beneficial interests and voting rights.

“Person” shall mean any individual, partnership, corporation,
limited liability company, trust or other legal entity.

“[*] Minimum Return” shall mean Priority Cash Flow Payments from
MLPC Residential Cash flow attributable to dwelling and/or
residential development by the Company or a Subsidiary of the [*] Site in a cumulative amount of $6,000,000. 
This is not intended to be a guaranteed payment within the meaning of
Code § 707.

 15

“[*] Site” shall have the meaning ascribed to it in the “[*] Agreement.

“[*] Preferred Return” shall mean an
amount equal to $[*] of saleable residential space on the [*] Site entitled
with the [*] and the “[*] in excess of [*] of saleable residential space,
payable in accordance with Section 8.1 from MLPC Residential Cash flow attributable
to dwelling and/or residential development by the Company or a Subsidiary of
the [*] Site, after payment of the [*] Minimum Return (it being agreed that the
[*] Preferred Return is only the amounts calculated as in this definition over
and above the [*] Minimum Return).  This is not intended to be a guaranteed
payment within the meaning of Code §707.

“Priority Cash Flow Payments” shall
have the meaning ascribed to it in Section 8.1(a).

“Profits” shall have the meaning set
forth in Section 7.2.

“Property” shall mean, collectively,
the RCK Property and the Lease Tract.

“Property Debt” shall mean any debt,
whether senior mortgage debt or mezzanine, incurred by the Company or one or
more of the Subsidiaries on or prior to the date hereof or any new debt
incurred in order to refinance such debt, together with any new (or refinanced)
debt relating to construction at any of the Property or (after acquisition
thereof by the Company or a Subsidiary) the [*] Tract, the [*] Tract
or the [ *] Tract.

“Property Management Agreement” means
any property management agreement or any replacement agreement providing for
the property management of the Property. 
Initially the term Property Management Agreement shall mean the Second
Amended and Restated Management Agreement, dated as of date hereof, by and
between Property Manager and Owner.

“Property Manager” means the entities
from time to time engaged to serve as the property manager for the Property.  Initially the Property Manager will be The
Ritz-Carlton Hotel Company, L.L.C., a Delaware limited liability company.  Notwithstanding anything to the contrary
contained herein, the “Property Manager” shall not be considered to be a
manager of the Company for purposes of the Act.

“Pro Rata Deposit Amount” shall have
the meaning set forth in Section 3.6(e).

“Pro Rata Portion” shall have the
meaning set forth in Section  3.6(e).

“Proposed Purchase Price” shall have
the meaning set forth in Section 3.6(a).

“Proposed Sale Notice” shall have the
meaning set forth in Section 3.6(a).

“Proposing Members” shall have the
meaning set forth in Section 9.6.

“Purchase Notice” shall have the
meaning set forth in Section 3.6(b).

“Purchase Notice Deposit” shall have the
meaning set forth in Section 3.6(f).

“Purchasing Entity” shall have the
meaning set forth in Section 3.6(e).

“Purchasing Party” shall have the
meaning set forth in Section 3.6(f).

 16
 

“Quarterly Payment Date,” when used with respect to the MLPC
Capital Preferred Return, means the beginning date of every calendar quarter,
starting on the date which is the first day of the first full
calendar month after ninety (90) days after the Effective Date.

“RCK Purchase Agreement” shall have
the meaning set forth in the Recitals.

“RCK Property” shall have the meaning
set forth in the Recitals.

“Reimbursed Member” shall have the
meaning set forth in Section 6.2(e).

“Residential Liquidation Value” shall
have the meaning set forth in Section 4.13.

“Residential Purchase Price” shall
have the meaning set forth in Section 4.13.

“Seller” shall have the meaning set
forth in the Recitals.

“Specially Designated National or Blocked
Person” shall mean (i) a person or entity designated by the U.S. Department
of Treasury’s Office of Foreign Assets Control from time to time as a “specially
designated national or blocked person” or similar status, (ii) a person or
entity described in Section 1 of U.S. Executive Order 13224, issued on
September 23, 2001, or (iii) a person or entity otherwise identified by
government or legal authority as a person with whom the Company or any of its
Members are prohibited from transacting business.

“Subsidiaries” shall mean,
collectively, Kapalua/Gengate Realty, Kapalua Senior Mezzanine and Kapalua
Mezzanine and any new, single purpose entity formed to develop or own any of
the [*] Tract, the [*] Tract or the [*] Site.

“Substituted Member” shall mean any
Person admitted to the Company as a Member pursuant to the provisions of
Section 9.3.

“Tax Matters Member” shall mean the “tax
matters partner” as designated by Section 4.7.

“[*] Property” shall have the meaning set forth in the
Recitals.

“[*] Sale and Purchase Agreement’ shall have the meaning set forth in the [*]
Agreement.

“Third-Party Purchase Price” shall
have the meaning set forth in Section 3.6(c).

“Third -Party Purchaser” shall have the meaning set forth in Section
3.6(c).

“Transfer” shall mean (i) with respect to the Whitehall Group or
MLPC, any transfer, sale, resignation, pledge, hypothecation, encumbrance,
assignment or other disposition of all or any portion of the Interest of such
Member or the proceeds thereof (whether voluntarily, involuntarily, by
operation of law or otherwise), (ii) in the case of the Gengate Members only,
any transfer, sale, resignation, pledge, hypothecation, encumbrance, assignment
or other disposition of any stock, partnership interest, beneficial interest or
other ownership interest in such Member (whether directly or indirectly and
whether voluntarily, involuntarily, by operation of law or otherwise).

“Transferee” shall mean any Person who receives from any Member,
via transfer, sale, resignation, pledge, hypothecation, encumbrance, assignment
or other disposition, any portion of the Interest of such Member or the proceeds
thereof (whether voluntarily, involuntarily, by operation of law or otherwise).

 17
 

“Treasury Regulations” shall mean the regulations promulgated
under the Code, as such regulations are in effect on the Effective Date.

“Triggering Party” shall have the meaning set forth Section
3.6(a).

“Uniform System” shall mean the Ninth Revised Edition of the
Uniform System of Accounts for Hotels, published by the American Hotel and
Motel Association, as amended from time to time.

“Whitehall Employee Fund” shall mean Whitehall Street Global
Employee Fund 2005, L.P., a Delaware limited partnership.

“Whitehall Group” shall mean, collectively, Whitehall Street and
Whitehall Employee Fund and any permitted transferee or assignee of all or any
portion of the Interest held by any of the foregoing as of the Effective Date
(but only for so long as any such Person continues in its capacity as a Member
of the Company).

“Whitehall Notional Distributions” shall mean the distribution
of Available Cash Flow and Available Capital Event Proceeds that would have
been made to the Whitehall Group pursuant to Section 8.1(b) and Section 8.1(c)
if such distributions had been made on a pro
rata basis to all Members in accordance with the Members’ Percentage
Interests in effect at the time of such distribution.

“Whitehall Street” shall mean Whitehall Street Global Real
Estate Limited Partnership 2005, a Delaware limited partnership.

1.2                                 Rules
of Construction.  This Agreement is
not subject to the principle of construing its meaning against the party that
drafted it, and each Member acknowledges that it was represented by its own
counsel in connection with its negotiation and drafting.  Whenever in this Agreement any of the Members
are permitted or required to make a decision or take an action:  (i) in its “discretion” or under a grant of
similar authority or latitude, such Member shall be entitled to consider only
such interest and factors as it desires, including its own interests, and shall
have no duty or obligation to give any consideration to any interest of or
factors affecting the Company or the other Members, or (ii) in its “good faith”
or “reasonable discretion” or under another expressed standard, the Member
shall act under such express standard and shall not be subject to any other or
different standard imposed by this Agreement or any other agreement
contemplated herein or by relevant provisions of law or in equity or otherwise,
provided that nothing in this Section
1.2 shall be interpreted to purport to eliminate the duty of good faith and fair
dealing inherent in every contract

1.3                                 Terms
Generally.  For all purposes of this
Agreement, except as otherwise expressly provided or unless the context
otherwise requires:

(a)                                  the terms defined in this Article (or elsewhere
herein) include both the plural and the singular;

(b)                                 the words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Agreement as a whole and not to
any particular Article, Section or other subdivision; and

(c)                                  the words “including” and “include” and
other words of similar import shall be deemed to be followed by the phrase “without
limitation.”

 18
 

ARTICLE 2

THE COMPANY AND ITS BUSINESS

2.1                                 Continuation of the
Company.  The Members have approved
this Agreement as the governing agreement of the Company.  Each of the 
Members hereby agrees to continue the business and the Company, in the
form of the Company and in accordance with the terms hereof and pursuant to the
Act.

2.2                                 Company Name.  The business of the Company shall be
conducted under the name of  “W2005
Kapalua/Gengate Hotel Holdings, L.L.C.” in the State of Delaware and under such
name or such assumed names as the Members deem necessary or appropriate to
comply with the requirements of any other jurisdiction in which the Company may
be required to qualify as a foreign limited liability company.  Legal and beneficial title to any properties,
real and personal, which may at any time during the term of the Company be
owned or leased by the Company shall be held in the name of the Company.

2.3                                 Term.  The term of the Company commenced on the date
the Certificate was filed with the Secretary of State of the State of Delaware
and shall continue in full force and effect until terminated following
dissolution as hereinafter provided.  The
existence of the Company as a separate legal entity shall continue until the
cancellation of the Certificate as provided in the Act.

2.4                                 Filing of
Certificate and Amendments.  The
Certificate was filed with the Secretary of State of the State of Delaware and
the Members agree that Alan Kava was the authorized signatory for such purpose
in accordance with the meaning of Section 18-204 of the Act.  The Members hereby agree to execute and file
any required amendments to the Certificate and shall do all other acts
requisite for the constitution of the Company as a limited liability company
pursuant to the laws of the State of Delaware, or any other applicable law, as
well as the qualification of the Company as a foreign limited liability company
under the laws of, or the right otherwise to do business in any state in which
the Members determine it is necessary or desirable to have such qualification
or right to do business.  Pursuant to
Section 18-201(d) of the Act, this Agreement shall be effective as of the
Effective Date.

2.5                                 Business; Scope of
Members’ Authority.

(a)                                  The Company is organized and formed for the purpose
of, directly or indirectly, acquiring, owning, dealing with, financing,
maintaining, operating, improving, developing, leasing, marketing, refinancing
and selling the Property and the Subsidiaries. 
The Company is empowered to do any and all acts and things necessary,
appropriate, incidental to or convenient to accomplish the purposes described
herein, and has authority to (i) enter into, perform and carry out contracts of
any kind, (ii) incur obligations and liabilities of any kind, (iii) borrow
money and issue evidences of indebtedness, whether secured or unsecured, and
(iv) acquire, own, manage, improve and transfer any real or personal property
(or any interest therein).

(b)                                 Except as otherwise expressly and specifically
provided in this Agreement, no Member shall have any authority to bind, to act
for, to sign for or to assume any obligation or responsibility on behalf of,
any other Member.  Neither the Company
nor any Member shall, by virtue of executing this Agreement, be responsible or
liable for any indebtedness or obligation of any other Member incurred or
arising either before or after the Effective Date, except that the Company only
(and not any Member) shall have those joint responsibilities, liabilities,
indebtedness, or obligations expressly assumed by the Company pursuant hereto
as of the Effective Date or incurred after the Effective Date pursuant to and
as limited by the terms of this Agreement.

 19
 

(c)                                  Each member of the Whitehall Group, Adam Brooks,
Elizabeth Burban, Brahm Cramer, Stephen Iorio, Jerome Karr, Alan Kava, Jonathan
Langer, Roy Lapidus, Vivian Mandis, Justin Metz, Robert Bloom, Josephine
Scesney and Peter Weidman is hereby designated as an “authorized person” within
the meaning of the Act. Any one of such authorized persons is hereby authorized
and shall execute, deliver and file any other certificates or documents (and
any amendments and/or restatements thereof) on behalf of the Company.

2.6                                 Principal Office;
Mailing Address; Registered Agent. 
The principal office and mailing address of the Company shall be 85
Broad Street, New York, New York 10004, Attention:  Chief Financial Officer.  The Company may change its place of business
and/or mailing address to such location or locations as may at any time or from
time to time be determined by GHGP and approved the Whitehall Group.  The name and address of the Company’s
registered agent is The Corporation Trust Company, Corporation Trust Center,
1209 Orange Street, Wilmington, New Castle County, Delaware 19801.

2.7                                 Names and Addresses
of the Members.  The names and
addresses of the Members are as follows:

Whitehall Street Global Real Estate Limited
Partnership 2005

85 Broad Street

New York, New York  10004

Attention:  Chief Financial Officer

Whitehall Street Global Employee Fund 2005, L.P.

85 Broad Street

New York, New York  10004

Attention:  Chief Financial Officer

Gengate Holdings GP, LLC 

c/o Gencom Group

801 Brickell Avenue, Penthouse 2

Miami, Florida 
33131

Attention:  Karim Alibhai

Gengate Kapalua Holdings, LLC

c/o Gencom Group

801 Brickell Avenue, Penthouse 2

Miami, Florida  33131

Attention:  Karim Alibhai

MLP RCK, LLC

c/o Maui Land & Pineapple Company, Inc.
 120 Kane Street

Kahului, Hawaii  96733-6687

Attention: Mr. Robert Webber

 20
 

2.8                                 Representations
by the Members.

(a)                                  Each Member represents, warrants, agrees and
acknowledges that:

(1)                                  it is a corporation,
limited liability company, or limited partnership, as applicable, duly
organized or formed and validly existing and in good standing under the laws of
the state of its organization or formation; it has all requisite corporate,
company or limited partnership power and authority to enter into this
Agreement, to acquire and hold its Interest and to perform its obligations
hereunder; and the execution, delivery and performance of this Agreement has
been duly authorized by all necessary corporate, company or limited partnership
action;

(2)                                  its
execution and delivery of this Agreement and the performance of its obligations
hereunder will not (i) conflict with, result in a breach of or constitute a
default (or any event that, with notice or lapse of time, or both, would
constitute a default) or result in the acceleration of any obligation under any
of the terms, conditions or provisions of any other agreement or instrument to
which it is a party or by which it is bound or to which any of its property or
assets is subject, (ii) conflict with or violate any of the provisions of its
Organizational Documents, or (iii) violate any statute or any order, rule or
regulation of any court or governmental or regulatory agency, body or
officials;

(3)                                  such
Member has obtained any consent, approval, authorization or order of any court
or governmental agency or body required for the execution, delivery and
performance by such Member of its obligations hereunder;

(4)                                  there
is no action, suit or proceeding pending against such Member or, to its
knowledge, threatened in any court or by or before any other governmental
agency or instrumentality that would prohibit its entering into, or that could
have a material adverse effect on its ability to perform its obligations under
this Agreement;

(5)                                  this
Agreement is a binding agreement on the part of such Member enforceable against
such Member in accordance with its terms;

(6)                                  neither
it nor any of its Affiliates has employed any broker or finder, or incurred any
liability for any brokerage commission or finder’s fee, in connection with any
of the transactions contemplated by this Agreement;

(7)                                  each
Member has been advised to engage and has engaged its own counsel (whether
in-house or external) and such other advisers as such Member deems necessary
and appropriate; by reason of its business or financial experience, or by
reason of the business or financial experience of such Member’s own attorneys,
accountants and financial advisors who are not Affiliates of the Company or any
other Member and who are not compensated, directly or indirectly, by the
Company or any other Member or any Affiliate thereof, it is capable of
evaluating the risks and merits of an investment in the Interest and of
protecting its own interests in connection with this investment (nothing in
this Agreement shall be construed to allow any Member to rely upon the counsel
acting for another Member or to create an attorney-client relationship between
such counsel and such other Member, it being understood and agreed that
Sullivan & Cromwell LLP is acting as counsel to the Whitehall Group and not
the Company or any other Member);

(8)                                  this
Agreement and all agreements, instruments and documents herein provided to be
executed or caused to be executed by it are duly authorized, executed and
delivered by and are binding upon it;

 21
 

(b)                                 Each Member represents, warrants, agrees and
acknowledges that:

(1)                                  (x)
it and each of its beneficial owners is an “accredited investor” (as defined in
Rule 501 of Regulation D promulgated under the Securities Act of 1933, as
amended) and (y) it is acquiring the Interest for investment purposes for its
own account only and not with a view to or for sale in connection with any
distribution of all or any part of the Interest;

(2)                                  it
is financially able to bear the economic risk of an investment in the Interest,
including the total loss thereof;

(3)                                  no
Person has at any time expressly or impliedly represented, guaranteed, or
warranted to it that it may freely transfer the Interest, that a percentage of
profit and/or amount or type of consideration will be realized as a result of
an investment in the Interest, that cash distributions from Company operations
or otherwise will be made to the Members by any specific date or will be made
at all, or that any specific tax benefits will accrue as a result of an
investment in the Company; and

(4)                                  it
has consulted with its own attorneys, accountants and financial advisors
regarding all legal, tax and financial matters concerning an investment in the
Company and the tax consequences of participating in the Company and it will
look solely to, and rely upon, its own advisers with respect to the tax
consequences of this investment.

(c)                                  GHGP represents, warrants, agrees and acknowledges
that neither it nor any ultimate beneficial interest holder in it that holds
through a flow-through entity for tax purposes is a “qualified organization”
within the meaning of Section 514(c)(9)(C) of the Code.

(d)                                 GKH represents, warrants, agrees and acknowledges
that neither it nor any ultimate beneficial interest holder in it that holds
through a flow-through entity for tax purposes is a “qualified organization”
within the meaning of Section 514(c)(9)(C) of the Code.

2.9                                 Control and
Ownership of GHGP.

(a)                                  GHGP agrees that it shall at all times cause the
Gengate Principals or their respective Permitted Gengate Transferees to
maintain exclusive control (which control shall be exercisable without the
consent or approval of any other Person) over the business and affairs of
GHGP.  GHGP represents and warrants that
(i) attached hereto as Schedule 2.9(a) are true and complete copies of
the Organizational Documents of GHGP, (ii) the ownership of GHGP (as of the
Effective Date) is as is set forth on Schedule 2.9(b) and (iii) the
Gengate Principals have exclusive control (which control is exercisable without
the consent or approval of any other Person) over the business and affairs of
GHGP.  GHGP hereby represents that the
ownership chart attached hereto as part of Schedule 2.9(a) is accurate
in all respects.  GHGP covenants and
agrees that at no time shall the Gengate Principals, together with their
respective Permitted Gengate Transferees, own less than ninety-five percent
(95%) of the legal and beneficial ownership and economic interests it currently
owns in GHGP, as set forth in the ownership chart attached hereto as part of Schedule
2.9(a)

(b)                                 GHGP covenants and agrees that in the event of the
occurrence of any Adverse Event with respect to (i) any Gengate Principal or
any of the representatives of GHGP listed on Schedule 3.4 or (ii) any
other officer, director, general partner or managing member of GHGP or any
Affiliate of GHGP (if such officer, director, general partner or managing
member is involved in the management or oversight of the Property), GHGP shall
take such steps as the Whitehall Group may deem necessary or appropriate to
ensure that the individual who is the subject of such Adverse Event shall have
no direct or indirect involvement in the business or affairs of the Company or
with the Property or any Company Assets;

 22
 

(c)                                  GHGP covenants and agrees that in the event of the
occurrence of a Transfer by GHGP, GHGP shall notify Whitehall Street and
Whitehall Employee Fund of the identity of any owner of a Permitted Gengate
Transferee;

(d)                                 the Gengate Principals agree that they shall at all
times maintain exclusive control (which control shall be exercisable without
the consent or approval of any other Person) over the business affairs of their
investment in GHGP; and

(e)                                  any breach of the terms of this Section 2.9(a), (c),
or (d), regardless of whether the same is within the control of GHGP or any of
its controlling persons, shall be deemed a material breach by GHGP of the terms
of this Agreement and shall not be subject to cure or remedy by GHGP.

2.10                           Control and Ownership of
GKH.

(a)                                  GKH agrees that it shall at all times cause the
Gengate Principals or their respective Permitted Gengate Transferees to
maintain exclusive control (which control shall be exercisable without the
consent or approval of any other Person) over the business and affairs of
GKH.  GKH represents and warrants that
(i) attached hereto as Schedule 2.10(a) are true and complete copies of
the Organizational Documents of GKH, (ii) the ownership of GKH (as of the
Effective Date) is as is set forth on Schedule 2.10(b) and (iii) the
Gengate Principals have exclusive control (which control is exercisable without
the consent or approval of any other Person) over the business and affairs of
GKH.  GKH covenants and agrees that at no
time shall the Gengate Principals, together with their respective Permitted
Gengate Transferees, own less than ninety-five percent (95%) of the legal and
beneficial ownership and economic interests it currently owns in GKH, as set
forth in the ownership chart attached hereto as part of Schedule 2.9(a);

(b)                                 GKH covenants and agrees that in the event of the
occurrence of any Adverse Event with respect to (i) any Gengate Principal or
any of the representatives of GKH listed on Schedule 3.4 or (ii) any
other officer, director, general partner or managing member of GKH or any
Affiliate of GKH (if such officer, director, general partner or managing member
is involved in the management or oversight of the Property), GKH shall take
such steps as the Whitehall Group may deem necessary or appropriate to ensure
that the individual who is the subject of such Adverse Event shall have no
direct or indirect involvement in the business or affairs of the Company or
with the Property or any Company Assets;

(c)                                  GKH covenants and agrees that in the event of the
occurrence of a Transfer by GKH, GKH shall notify Whitehall Street and
Whitehall Employee Fund of the identity of any owner of a Permitted Gengate
Transferee;

(d)                                 the Gengate Principals agree that they shall at all
times maintain exclusive control (which control shall be exercisable without
the consent or approval of any other Person) over the business affairs of their
investment in GKH; and

(e)                                  any breach of the terms of this Section 2.10(a), (c),
or (d), regardless of whether the same is within the control of GKH or any of
its controlling persons, shall be deemed a material breach by GKH of the terms
of this Agreement and shall not be subject to cure or remedy by GKH.

2.11                           OFAC
and Patriot Act Compliance.

(a)                                  Each Member represents and warrants that (i) such
Member and each Person owning  a ten
percent (10%) or greater interest in such Member (A) is not currently
identified on the List,

 23
 

and (B) is not a Person with whom a citizen
of the United States is prohibited to engage in transactions by any trade
embargo, economic sanction, or other prohibition of United States law,
regulation, or Executive Order of the President of the United States and (ii)
such Member has implemented procedures, and will consistently apply those
procedures, to ensure the foregoing representations and warranties remain true
and correct at all times.  This Section
2.11(a) shall not apply to any Person to the extent that such person’s interest
in the Member is through either (A) a Person (other than an individual) whose
securities are listed on a national securities exchange, or quoted on an
automated quotation system, in the United States, or a wholly-owned subsidiary
of such a Person or (B) an “employee pension benefit plan” or “pension plan” as
defined in Section 3(2) of ERISA.

(b)                                 Each Member shall comply with all requirements of law
relating to money laundering, anti-terrorism, trade embargos and economic
sanctions, now or hereafter in effect and shall immediately notify the other
Members in writing if any of the forgoing representations, warranties or
covenants are no longer true or have been breached or if the Member has a
reasonable basis to believe that they may no longer be true or have been
breached.

2.12                           Indemnification.  The representations, warranties and covenants
of the Members set forth in Section 2.8, Section 2.9 and Section 2.10 are made
as of the Effective Date and shall survive the Effective Date
indefinitely.  To the fullest extent
permitted by law, each Member agrees to indemnify, defend, and hold the Company
and the other Members harmless against all claims, demands, actions, obligations,
causes of action and losses, including reasonable fees of counsel, suffered or
incurred by, or asserted against, any of them relating to or arising from any
inaccuracy in or breach of such representation, warranty or covenant.

2.13                           Representations
by the Company.

(a)                                  The Company hereby
represents and warrants to the Capital Members that it has no outstanding
liabilities, contingent or otherwise, except in connection with, arising out of
or in any way relating to the Property, the transactions set forth in the MLPC
Lease Tract Purchase Agreement and the activities and transactions that the
Company is permitted by the terms hereof and of the [*] Agreement to undertake
and/or the related financings incurred by the Company or its Subsidiaries
and/or any instruments delivered in connection with any of the foregoing.

(b)                                 Except as set forth on
Schedule 2.13(b), the Company hereby represents and warrants to MLPC
that, to the knowledge of the Company, (i) there are no actions, suits, or
proceedings pending, or threatened against the Company or the Subsidiaries in
existence on the date hereof (collectively, the “Warranting Parties”),
or the Property, or affecting any of the Warranting Parties’ rights with
respect to the Property, before or by any federal or state governmental agency
or instrumentality, including without limitation, any claims of violations of
by any agent of employee of any of the Warranting Parties of any labor laws
violations or insufficient funding of pension plans of any of the Warranting Parties,
(ii) no Warranting Party received any notice of any such actions, suit or
proceedings, and (iii) there are no attachments, executions, assignments, or
judgments for the benefit of creditors of any of the Warranting Parties
relating to the same.  As used in this
Section 2.13(b) or in Section 2.13(c) or Section 2.13(d), when a representation
and warranty is given “to the knowledge of the Company,” it shall mean to the
actual knowledge of any of Troy Bennett, Karim Alibhai, or Greg Denton.

(c)                                  The Company hereby
represents and warrants to MLPC that, to the knowledge of the Company, (i) the
delivered financial statements dated December 31, 2006 for the Hotel fairly
present the results of operation of the Hotel for the periods indicated
(subject to year-end audit adjustments in the case of unaudited statements),
are true, complete and correct in all material respects, and were prepared in
accordance with generally accepted accounting principles (as adjusted to
conform to the Uniform System

 24
 

of Accounts for Hotels, Eighth Revised Edition) applied on a consistent
basis, (ii) there has been no material adverse change in the results of the
operations of the Hotel, since December 31, 2006, and (iii) all federal, state
and local employment taxes, payroll taxes, excise taxes, occupancy or
entertainment taxes, ad valorem taxes, liquor taxes, and sales or use taxes due
and payable by any of the Warranting Parties as of the date hereof in
connection with the ownership or operation of the Hotel have been paid and all returns
filed.

(d)                                 To the Company’s
knowledge, the Company has made available to MLPC all written materials,
instruments, documents, lists, schedules, items and records relating to the
Hotel, and copies thereof delivered by the Company to MLPC were true and
complete copies of the corresponding document in the Company’s possession.

ARTICLE 3

MANAGEMENT OF COMPANY BUSINESS; MAJOR DECISIONS

3.1                                 Management and
Control by the Managing Members.

(a)                                  Except as otherwise specifically set forth in this
Agreement, the Managing Members shall each have the right, authority,
discretion and power to conduct, control and manage on behalf of the Company
the business and affairs of the Company and to do all things necessary,
appropriate or desirable (in the reasonable discretion of the Managing Members)
to carry on the business of the Company, and are hereby authorized to execute
and deliver on behalf of the Company any and all documents, contracts,
certificates, agreements and instruments of any kind, and to take any action of
any kind and to do anything and everything the Managing Members deem necessary,
desirable or appropriate in accordance with the provisions of this Agreement
and applicable law; provided, however,
any and all of the actions listed in Section 3.2(d) (each, a “Major Decision”)
shall require the approval of the Managing Members as provided in Section
3.2(d).  Subject to the provisions of
Section 4.8, if any of the Managing Members determine that an Event of Default
has occurred, the Whitehall Group shall have the right to limit or eliminate
such authority and duties of GHGP and GKH effective upon delivery of written
notice to GHGP or GKH.  Persons dealing
with the Company are entitled to rely conclusively upon the right, power,
authority and direction of the Managing Members as herein set forth.  The Managing Members may consult with legal
counsel, accountants, appraisers, management consultants, investment bankers
and other consultants and advisers selected by the Managing Member, and any act
taken or omitted to be taken in reliance upon the opinion of such Persons as to
matters within such Person’s professional or expert competence shall be
presumed to have been done or omitted in good faith and not to constitute gross
negligence or willful misconduct.

(b)                                 Except as otherwise expressly and specifically
provided in this Agreement, no Person who is at any time a Non-Managing Member
shall have any authority to bind, to act for, to execute any document or
instrument on behalf of or to assume any obligation or responsibility on behalf
of the Company or any other Member.

(c)                                  For purposes of making any of MLPC Preferred Returns
and [*] Minimum Return, included in the authority granted to the Managing
Members under Section 3.1(a), the Managing Members shall have the authority to,
and shall, determine in their reasonable discretion whether there is any MLPC
Residential Development Cash Flow attributable to dwelling and/or residential
development by the Company or a Subsidiary of each of (i) the [*] Site, (ii)
the [*] Tract, and (iii) the [*] Tract and, if so, the amount thereof.  MLPC shall have the right to audit the
Managing Members determination of MLPC Residential Development Cash Flow
available for payment of the MLPC Preferred Return or [*]

 25
 

Minimum Return (as applicable).  For the avoidance of doubt, such MLPC
Preferred Returns and [*] Minimum Return, if made, shall not be deemed to be
distributions to MLPC pursuant to Article 8 hereof.

3.2                                 Role of GHGP and
Limitations on its Authority.

(a)                                  GHGP shall have the right and the duty to manage the
day-to-day business of the Company, to perform duties customary for an asset
manager of property comparable to the Property, and to implement the decisions
made on behalf of the Company by any of the Managing Members in accordance with
the terms of this Agreement and applicable laws and regulations, and shall have
such other rights and powers as are granted to GHGP hereunder and as Whitehall
Street or Whitehall Employee Fund may from time to time expressly delegate to
GHGP.  GHGP agrees that it (or its
Affiliates) shall devote the necessary time and effort to the Company and its
business for the purpose of conducting the business of the Company and carrying
out GHGP’s responsibilities as set forth herein in a prudent manner and that
any breach of the obligation set forth in this sentence shall be deemed a
material breach of this Agreement. 
Without limiting the generality of the foregoing but subject to the
other provisions in Article 3, GHGP shall have the right and the duty, to do,
accomplish and complete using (and subject to the availability of) the Company’s
funds, for and on behalf of the Company with reasonable diligence and in a
prompt and businesslike manner, exercising such care and skill as a prudent
owner with sophistication and experience in owning, operating and managing
properties like the Property would exercise in dealing with its own property,
all of the following:

(1)                                  supervise
and oversee the Property Manager to confirm their performance in accordance
with the Property Management Agreement, as applicable, and promptly reporting
deficiencies to the Company in reasonable detail together with proposed  actions to be taken in respect thereto;

(2)                                  verify
that appropriate insurance is maintained by each contractor performing work on
the Property with respect to the Capital Improvement Program;

(3)                                  assisting
in obtaining a loan and any and all other necessary financing required to carry
out the purposes of the Company;

(4)                                  except
to the extent that the Property Manager is required to do the same under its
respective property management agreement, demand, receive, acknowledge and, if
the approval of the Managing Members has been obtained, institute legal action
for recovery of any and all revenues, receipts and considerations due and
payable to the Company, in accordance with prudent business practices;

(5)                                  keep
all books of account and other records of the Company and deliver in a timely
manner all reports in the manner provided in Article 5 below (it being
understood that  GHGP will be dependent
on the Property Manager preparing and delivering property specific
information);

(6)                                  to
the extent any funds from the Property come into GHGP’s or GKH’s possession,
promptly remit such funds to the Company’s bank account in the manner provided
in Article 5 below and not commingle such funds with the funds of any other
Person;

(7)                                  prepare
in a timely manner for approval in accordance with the terms hereof, and
implement the Capital Improvement Budget;

 26
 

(8)                                  except
to the extent that the Property Manager is required to do the same under its
the Property Management Agreement, coordinate the defense of any claims,
demands, suits or legal proceedings made or instituted against the Company or
the Members by other parties, through legal counsel for the Company engaged in
accordance with the terms of this Agreement; deliver to the Managing Members
prompt notice of the receipt of any material claim or demand or the
commencement of any suit or legal proceeding and promptly provide the Managing
Members all information relevant or necessary thereto;

(9)                                  except
to the extent that the Property Manager is required to do the same under the
Property Management Agreement, comply with the terms and provisions of the Loan
Agreements or other loan documents assumed or executed by the Company or its
Subsidiaries including the terms and conditions of any note, mortgage and/or
loan document evidencing the financing of the purchase of the Property
(provided, that GHGP acknowledges that it, and not the Property Manager, is
primarily responsible for the Capital Improvement Program and ensuring that the
Capital Improvement Program does not conflict with the terms of the Loan
Agreements and other material agreements);

(10)                            except
to the extent that the Property Manager is required to do the same under the
Property Management Agreement, during the term of this Agreement, promptly
comply with all present and future laws, ordinances, orders, rules, regulations
and requirements of all federal, state and municipal governments, courts,
departments, commissions, boards and officers, the requirements of any
insurance policy (or any insurer thereunder) covering the Property (and any
improvements thereon), any national or local Board of Fire Underwriters, or any
other body exercising functions similar to those of any of the foregoing, which
may be applicable to the Property (and any improvements thereon) and the
operation and management thereof, and when and to the extent approved by any of
Whitehall Street or Whitehall Employee Fund, GHGP shall contest (or shall
assist the Members in contesting) the validity or application of any such law,
ordinance, order, rule, regulation or requirement (provided, that GHGP
acknowledges that it, and not the Property Manager, is primarily responsible
for the Capital Improvement Program and ensuring that the Capital Improvement
Program does not conflict with any present and future laws, ordinances, orders,
rules, regulations and requirements of all federal, state and municipal
governments, courts, departments, commissions, boards and officers, the
requirements of any insurance policy (or any insurer thereunder) covering the
Property (and any improvements thereon), any national or local Board of Fire
Underwriters, or any other body exercising functions similar to those of any of
the foregoing, which may be applicable to the Property);

(11)                            oversee
the Property Manager with respect to the hiring and terminating of the staff at
the Property, except in the case of the general manager, whose termination shall
require the consent of the Whitehall Group and MLPC;

(12)                            except
to the extent that the Property Manager is required to do the same under its
Property Management Agreement, perform or cause to be performed all other
services that are reasonably necessary or required for the acquisition,
ownership and maintenance, marketing, and operation by the Company of the
Property or otherwise required to be performed by GHGP pursuant to this
Agreement and not otherwise prohibited hereunder;

(13)                            supervise
the Property Manager with collection of all room charges, rents, income and
other amounts payable to the Company, and deposit such funds into the accounts
set up pursuant to Section 5.5;

 27
 

(14)                            supervise
the promotion of the Property through advertisements in various media and
promotional materials, including the production and distribution of all
correspondence associated with the promotion and operation of the Property
(i.e., newspapers, press releases, invitations, status reports); include
specific public relations or advertising campaigns in the Business Plan each
applicable Fiscal Year for Managing Members’ approval in accordance with the
terms hereof prior to implementation;

(15)                            except
to the extent that the Property Manager is required to do the same under the Property
Management Agreement, assist Managing Members in reviewing files, conducting
physical inspections of the Property, reviewing and assessing any liens on or
other encumbrances to the title of the Property, and securing environmental
reports, and making recommendations to Managing Members regarding potential
claims with respect to the Property pursuant to any agreement with respect to
the Property; provided, that GHGP acknowledges that it, and not the Property
Manager, is primarily responsible for these duties in with respect to the
Capital Improvement Program;

(16)                            if
the Property is to be sold, assist the Triggering Party in negotiating a
sale  in accordance with this Agreement,
and assist the Triggering Party in effecting a closing of the transaction
between Company and the purchaser;

(17)                            supervise
the Property Manager, leasing agents, building contractors working on
improvements or other repairs or renovations of existing improvements with
respect to the Capital Improvement Program;

(18)                            proposing
building contractors to the Managing Members;

(19)                            with
respect to the Capital Improvement Program, observe and manage the performance
of all contractors performing renovations and related work including direct
observation during the progress thereof; make final review of the completed
work and approving bills for payment; obtain the necessary receipts, releases,
waivers, discharges and assurances to keep the Property free from mechanics’
and materialmen’s liens and other claims; and coordinate the review and
approval of such work by any lender whose approval is required under any loan
to which the Company or any Subsidiary is a party;

(20)                            performing,
or causing the performance of, all other services reasonably necessary or
required for the implementation of the Capital Improvement Program by the
Company to they extent such services are not otherwise prohibited to be
performed, or caused to be performed, by GHGP pursuant to the terms of this
Agreement; and

(21)                            selling
dwelling units and/or residential units from dwelling and/or residential
development by the Company or a Subsidiary of the [*] Tract, the [*] Tract or
the [*] Site, provided that such sales are made for consideration consistent
with the Approved Budget.

For the purposes of the foregoing, where GHGP is responsible
for “supervising” any person other than the Property Manager, but is unable to
terminate such person, GHGP shall not be responsible for the failure of such
Person to perform as long as such failure was not caused by the gross
negligence of GHGP.  For purposes of (11)
above, to the extent GHGP has the right pursuant to a Property Management
Agreement to approve the hiring and terminating of the staff at the Property,
GHGP shall obtain the approval of MLPC before exercising such right.

 28
 

(b)                                  Notwithstanding anything to the contrary contained
herein, GHGP shall not be construed to be a “manager” of the company for
purposes of the Act.

(c)                                  To the fullest extent permitted by law, the
Non-Managing Members shall indemnify and hold harmless the Company and each of
the Managing Members and their Affiliates from and against any and all claims,
demands, losses, damages, liabilities, lawsuits and other proceedings,
judgments and awards, and costs and expenses (including, but not limited to,
reasonable attorneys’ fees) arising, directly or indirectly, in whole or in
part, out of any breach of the provisions of Section 3.2(d) by such
Non-Managing Member or any Affiliate of such Non-Managing Member.

(d)                                 Notwithstanding anything to the contrary set forth in
this Agreement, the following actions and decisions may not and shall not be
taken, carried out, or implemented by any Member without the prior written
direction or consent of (i) either Whitehall Street or Whitehall Employee Fund
and (ii) either GKH or MLPC; provided, however, that GKH shall have no
consent right under this Section 3.2(d) upon the occurrence and during the
continuance of an Event of Default and that MLPC have no consent right under
this Section 3.2(d) upon the occurrence and during the continuance of an MLPC
Event of Default:

(1)                                  to
the extent that an Approved Budget is not yet in effect for the current Budget
Year, incur any capital, operating or other expenditures (including, but not
limited to, expenditures relating to tenant improvements or any other material
construction, renovation or remodeling work) on behalf of the Company in
respect of the Property that (x) have not been previously approved in writing
by (i) either Whitehall Street or Whitehall Employee Fund and (ii) unless and until
an Event of Default occurs, GKH or (y) is not permitted by Section 5.3(b); provided, however, GHGP
may (and may direct the Property Manager to) incur such capital or operating
expenditures (up to a maximum of $50,000) upon one (1) day prior notice to the
Managing Members, in case of an emergency, which in GHGP’s reasonable
discretion is necessary in order to avoid immediate loss to the Property, or
with such shorter or no prior notice (but subsequent notice as soon as
reasonably possible) to the extent that one (1) day’s prior notice would
jeopardize the viability of the Property or the health, safety or welfare of
persons located thereon; provided further,
that such emergency expenses referred to in the preceding proviso shall not
exceed $100,000 in the aggregate in any Fiscal Year without the approval of (i)
either Whitehall Street or Whitehall Employee Fund, (ii) MLPC, and (iii) unless
and until an Event of Default occurs, GKH;

(2)                                  [intentionally
omitted];

(3)                                  except
as set forth in Section 3.6, Section 4.13 or Section 9.1, sell, transfer,
assign, pledge, hypothecate or otherwise dispose of any portion or all of any
of the Property, a Company Asset (except that GHGP may (and may direct the
Property Manager to) dispose of immaterial items of personal property in the
ordinary course of business or as previously approved in the Business Plan
and/or the Annual Budget) or the Company (i.e., any of
the Whitehall Group may sell the entire Company and “drag-along” the
Non-Managing Members), and/or enter into any binding agreement to do any of the
foregoing (or enter into any amendment, renegotiation, modification, supplement
or extension of any such agreement previously approved by (i) either Whitehall
Street or Whitehall Employee Fund, (ii) MLPC, and (iii) unless and until an
Event of Default occurs, GKH in accordance with this Agreement);

(4)                                  approve
or disapprove of any proposed Business Plan or any material changes or
modifications to any Business Plan except as provided in Sections 3.2(d)(1) and
(2);

 29
 

(5)                                  approve
or disapprove of any Annual Budget or any material changes to any Approved
Budget except as provided in Sections 3.2(d)(1) and (2);

(6)                                  approve
or disapprove the Capital Improvement Program or any material changes or
modifications to the Capital Improvement Program;

(7)                                  approve
or disapprove the Capital Improvement Budget or any material changes to the
Capital Improvement Budget;

(8)                                  enter
into any Material Contract other than in accordance with an Approved Budget;

(9)                                  except
as set forth in Section 3.7, acquire or lease (whether as lessee or lessor) any
land or other real property or interest therein or any other material asset
other than in accordance with a Business Plan;

(10)                            exercise
or waive any rights or remedies of the Company under the MLPC Lease Tract
Purchase Agreement, the RCK Purchase Agreement, the [*] Agreement, the [*] Agreement,
or under any documents or agreements ancillary to any of the foregoing
agreements;

(11)                            take
any action in respect of the Property relating to environmental matters other
than to obtain environmental studies and reports, conduct (or arrange for)
evaluations and analyses thereof and obtain appropriate permits; provided, however, that
each of the Members is hereby authorized (upon prior notice to the other
Members) to take such action as may be reasonably required to mitigate or
eliminate any material environmental condition that poses imminent danger to
human health or safety; provided further,
that such emergency expenses referred to in the preceding proviso shall not
exceed $100,000 in the aggregate in any Fiscal Year without the approval of the
(i) either Whitehall Street or Whitehall Employee Fund, (ii) MLPC, and (iii)
unless and until an Event of Default occurs, GKH;

(12)                            to
the fullest extent permitted by law, dissolve and wind-up the Company or elect
to continue the Company or elect to continue the business of the Company;

(13)                            either
(i) incur, renew, refinance or pay or otherwise discharge indebtedness of the
Company ( other than ordinary course trade payables incurred in accordance with
the Approved Budget or approved Credit Improvement Budget) or (ii) use Company
funds to extend credit, make an Investment, make a loan or become a guarantor
or surety for debt of another party;

(14)                            modify
(i) any loan documentation executed by the Company or (ii) any other material
agreement the execution of which required the approval of the Managing Members
and GKH, except for the purpose of the preceding clause (ii), if such
modification is consistent with a Business Plan;

(15)                            institute
proceedings to adjudicate the Company bankrupt, or consent to the filing of a
bankruptcy proceeding against the Company, or file a petition or answer or
consent seeking reorganization of the Company under the Bankruptcy Code or any
other similar applicable federal, state or foreign law, or consent to the
filing of any such petition against the Company, or consent to the appointment
of a receiver or liquidator or trustee or assignee in bankruptcy or insolvency
of the Company or of its property, or make an assignment for the benefit of
creditors of the Company, or admit in writing the Company’s inability to pay
its debts generally as they become due;

 30

(16)                            take
any action that would constitute an event of default under any loan agreement
or other loan document to which the Company is a party;

(17)                            organize
or form any subsidiary of the Company;

(18)                            change
the nature of the business of the Company;

(19)                            admit
a new Member or Substituted Member of the Company;

(20)                            subject
to Article 11, amend this Agreement, the Certificate or any other
Organizational Document of the Company;

(21)                            merge,
convert or consolidate the Company with or into another Person (or engage in
any other transaction having substantially the same effect);

(22)                            make
or revoke any tax election by or on behalf of the Company;

(23)                            file
any tax return or tax report on behalf of the Company;

(24)                            make
any public or private offering for the sale of equity interests or securities
issued by the Company;

(25)                            settle
a property insurance claim or condemnation action involving a claim in excess
of $50,000 or that, when added to all other insurance or condemnation claims
during a single Fiscal Year, exceeds $100,000;

(26)                            retain
legal counsel for the Company (other than Sullivan & Cromwell LLP) or
institute any legal action involving a claim in excess of $50,000 or that, when
added to all other claims made during a single Fiscal Year, exceeds $100,000;
settle a legal action for an amount in excess of $50,000 that is not covered by
insurance, or that, when added to all other settlements made during a single
Fiscal Year that are not covered by insurance, exceeds $50,000; or confess any
judgment against the Company;

(27)                            select
the Company’s accountants and independent auditors which shall be one of the
Big 4 accounting firms; make any accounting decisions for the Company (other
than those specifically provided for in other Sections of this Agreement); or approve
any financial statements prepared by the Company’s auditors;

(28)                            make
or agree to any changes to the zoning of the Property or approve the terms and
provisions of any restrictive covenant or easement agreement affecting the
Property or any portion thereof (other than utility easements and the like
granted or released in the ordinary course and other than as set forth in the
Business Plan);

(29)                            make
a Capital Call other than as provided in Section 6.2;

(30)                            execute
or terminate any office, retail or other commercial lease, or modify any such
lease in a manner that waives any substantive right of the Company;

 31
 

(31)                            amend,
modify or waive any provision of the Property Management Agreement or the Asset
Management Agreement, provided, however,
that Whitehall Street or Whitehall Employee Fund may amend, modify or waive any
provision of the Asset Management Agreement (pursuant to its terms) without the
consent of GKH;

(32)                            approve
or disapprove of a creditors’ plan, the filing of an involuntary petition of
bankruptcy or the dismissal or discharge of a claim of bankruptcy in connection
with bankruptcy proceedings involving any Person with respect to which the
Company is a creditor;

(33)                            make
distributions to the Members other than pursuant to Section 8.1;

(34)                            subject
to any reserves authorized by an Approved Budget or the Capital Improvement
Budget, establish and maintain reserves;

(35)                            cause
the Company to hire any employees (as employees of the Company);

(36)                            take
any action with respect to the Company or the Property that involves or relates
to, or cause the Company to enter into any agreement with, GHGP, GKH, the
Property Manager, any Gengate Principal or any Affiliate of any of the
foregoing;

(37)                            take
any action that reasonably would be expected to have a material adverse effect
on the assets, liabilities, income or expenses of the Company;

(38)                            take
any action or give or withhold any consent, waiver or approval or exercise any
right that is specifically delegated to or requires the approval pursuant to the
terms of this Section 3.2(d);

(39)                            in
the event the Company has or forms any subsidiary, take any action on behalf
of, relating to or affecting such subsidiary of the type described in clauses
(1) through (39) of this Section 3.2(d) including by granting consent to such
action in the Company’s capacity as the managing member or owner of such
subsidiary; or

(40)                            sell
any dwelling unit and/or residential unit from dwelling and/or residential
development by the Company or a Subsidiary of the [*] Tract, the [*] Tract or
the [*] Site for consideration not consistent with the Approved Budget.

Notwithstanding the foregoing limitations, GHGP shall have the
authority to take any action necessary for the purpose of carrying out the
Approved Budget or the Business Plan.

The Members acknowledge and approve the Company’s execution and
delivery of the MLPC Lease Tract Purchase Agreement, the [*] Agreement, the [*] Agreement and the
Company’s consummation of the transactions contemplated thereby and the
performance by the Company of its obligations thereunder.

(e)                                  Notwithstanding anything to the contrary set forth in
this Agreement, the following actions and decisions may not and shall not be
taken, carried out, or implemented by any Member without the prior written direction
or consent of any two of (i) either Whitehall Street or Whitehall Employee
Fund, (ii) GKH, and (iii) MLPC; provided, however, that GKH shall have
no consent right under this Section 3.2(e) upon the occurrence and during the
continuance of an Event of 

 32
 

Default and that MLPC have no consent right under this Section 3.2(e)
upon the occurrence and during the continuance of an MLPC Event of Default:

(1)                                  to
the extent that an Approved Budget is in effect for the current Budget Year,
incur, or cause the Company to incur, any capital, operating or other
expenditures on behalf of the Company that would, individually or in the
aggregate, cause such expenditures to be greater than one hundred four percent
(104%) of the amount set forth in the appropriate line item relating to such
expenditures in an Approved Budget; provided, however, GHGP may (and may direct the Property Manager to)
incur such excess capital or operating expenditures upon one (1) day prior
notice to the Members, in case of an emergency, which in its reasonable
discretion is necessary in order to avoid immediate loss to the Property, or
with such shorter or no prior notice (but a subsequent notice as soon as
possible) to the extent that one (1) day prior notice would jeopardize the
viability of the Property or the health, safety or welfare of persons located
thereon; provided, further, that such emergency
expenses referred to in the preceding proviso shall not exceed $100,000 in the
aggregate in any Fiscal Year without the approval as required by this Section
3.2(e); or

(2)                                  with
respect to Section 3.2(d)((7) above, incur on behalf of the Company or
cause the Company to incur up to an additional $300,000, in the aggregate, of
expenses in excess of the Capital Improvement Budget with respect to any expenses
incurred or to be incurred in connection with the implementation of the Capital
Improvement Program.

(f)                                    Persons dealing with the Company are entitled to rely
conclusively upon the right, power, authority and direction of GHGP as
expressly herein set forth.  GHGP may
consult with legal counsel, accountants, appraisers, management consultants,
investment bankers and other consultants and advisers selected by it, and any
act taken or omitted to be taken in reliance upon the opinion of such Persons
as to matters within such Person’s professional or expert competence shall be
presumed to have been done or omitted on good faith and not to constitute gross
negligence or willful misconduct.

3.3                                 Management
Agreements.  Whitehall Street and
Whitehall Employee Fund shall have the exclusive responsibility, power and
authority to deal with the  Asset
Manager, individually or collectively, on behalf of the Company in connection
with the Asset Management Agreement, to give any consent, approval or direction
required of or permitted by the Company as “Owner” thereunder, to make
calculations as to the fees payable in accordance with the terms of the Asset
Management Agreement and to exercise any termination provisions contained
therein.  In the event of a termination of
the Asset Management Agreement in accordance with its terms, the Members shall
collectively appoint a successor asset manager.

3.4                                 Acts of the Company
and the Members.

(a)                                  Whenever in this Agreement or elsewhere it is
provided that consent is required of, a demand shall be made by, or acts shall
be performed by or at the direction of Whitehall Street or Whitehall Employee
Fund, all such consents, demands and acts are to be made, given or performed
upon the consent of any of the Persons listed on Schedule 3.4 attached
hereto under the heading “Representatives of the Whitehall Group”, each of whom
shall be vested with the authority of Whitehall Street and Whitehall Employee
Fund, until such time, if any, as MLPC and either GHGP or GKH shall receive a
notice from Whitehall Street or Whitehall Employee Fund designating one or more
replacement representatives.

(b)                                 Whenever in this Agreement or elsewhere it is
provided that consent is required of, a demand shall be made by, or acts shall
be performed by or at the direction of GHGP or GKH, all

 33
 

such consents, demands and acts are to be
made, given or performed upon the consent of any of the Persons listed on Schedule
3.4 attached hereto under the heading “Representatives of Gengate”, each of
whom shall be vested with the authority of GHGP and GKH, until such time, if
any, as MLPC and either Whitehall Street or Whitehall Employee Fund shall
receive a notice from GHGP or GKH 
designating one or more replacement representatives.

(c)                                  Whenever in this
Agreement or elsewhere it is provided that consent is required of, a demand
shall be made by, or acts shall be performed by or at the direction of MLPC,
all such consents, demands and acts are to be made, given or performed upon the
consent of any of the Persons listed on Schedule 3.4 attached
hereto under the heading “Representatives of MLPC”, each of whom shall be
vested with the authority of MLPC, until such time, if any, as either Whitehall
Street or Whitehall Employee Fund and either GHGP or GKH shall receive a notice
from MLPC designating one or more replacement representatives.

3.5                                 Waiver of Rights by
Non-Managing Members.

(a)                                  To the fullest extent permitted by law, except as
specifically set forth herein, each of the Non-Managing Members hereby waives
any rights it may have to (i) consent to, (ii) request appraisal rights with
respect to or (iii) otherwise approve, any merger or combination (or other
transaction having substantially the same effect) of the Company or the
Subsidiaries, any sale, contribution or other disposition of the Property or
the Company or the Subsidiaries, and releases each of the Managing Members and
its Affiliates from any claims that the Non-Managing Members might have had
with respect to such rights had they not been waived.

(b)                                 The Gengate Members and MLPC acknowledge that any
member of the Whitehall Group and any Affiliate thereof (including Goldman,
Sachs & Co. or Goldman Sachs Mortgage Company) may, in its discretion,
elect to make a loan to complete the acquisition of the Property by Kapalua/Gengate
Realty and the Non-Managing Members hereby waive and release, to the fullest
extent permitted by law, any defense, claim, counterclaim, right of set off, or
other right to the enforcement of such loan (i) based upon or relating to
lender liability or similar grounds to challenge, limit, impair or otherwise or
otherwise restrict the rights or remedies of the lender, (ii) that any member
of the Whitehall Group has any conflict of interest in acting both as a
creditor of the Company and as an owner of an interest in the Company, (iii)
that such enforcement constitutes a breach of Whitehall Street’s or Whitehall
Employee Fund’s fiduciary or other duties to the Company, and, to the fullest
extent permitted by law, the Non-Managing Members hereby waive and release and
agree not to assert or raise any such defense, claim, counterclaim, right of
set off, or other right to the enforcement of such loan.

3.6                                 Sale of Property.   Notwithstanding anything to the contrary
herein, except as provided in Section 3.2(a)(21), (i) the Property may not be
sold without the consent of GKH or the Whitehall Group prior to March 13, 2009
and (ii) at any time from and after March 13, 2009, either of the Whitehall
Group or GKH shall have the right, acting alone and without the consent or
approval of any other Member,  to
commence the marketing of, and cause the sale of, the Property subject only to
a right of first offer in favor of the other Members pursuant to the following
provisions:

(a)                                  The party desiring to sell the Property (the “Triggering
Party”) shall give written notice (the “Proposed Sale Notice”) to
each of the other Members (each, a “Non-Triggering Party” and,
collectively, the “Non-Triggering Parties”) setting forth the proposed purchase
price (the “Proposed Purchase Price”) of the proposed sale.

(b)                                 Each Non-Triggering Party electing to purchase the
Property (an “Electing Non-Triggering Party”) shall have thirty (30) days (the
“Election Period”) after receiving the Proposed Sale Notice to make such
election by giving written notice thereof (the “Purchase Notice”) to the
Triggering Party, with a copy to each other Non-Triggering Party, within the
Election Period.

 34
 

(c)                                  If none of the Non-Triggering Parties timely delivers
a Purchase Notice together with a Purchase Notice Deposit as required by
Section 3.6(f), then none of the Non-Triggering Parties shall have any further
right to purchase the Property, except as may be expressly provided for below
in this Section 3.6(c), and the Triggering Party shall have the right to
cause the Company to enter into an agreement to sell, and to sell, the Property
to an independent third party which  is
not an Affiliate of any Member (“Third-Party Purchaser”) at any time or
times during a one hundred eighty (180) day period (such period, the “Marketing
Period”; it being agreed and understood that the Triggering Party shall
have the right to end the Marketing Period at any time prior to the end of such
180-day period upon notice to the Non-Triggering Parties), which period shall
commence on the earlier of (A) the first day after the Election Period expires
and (B) such time (if any) as each Non-Triggering Party has notified the
Triggering Party that the Non-Triggering Party will not be purchasing the
Property (whether individually or jointly with any other Non-Triggering Party
or Parties), for aggregate gross consideration which is not less than 95% of
the Proposed Purchase Price (excluding (i.e., without deducting from the
consideration offered by the Third-Party Purchaser) any customary prorations to
such consideration determined as of the date of the closing of the sale of the
Property, transfer taxes, legal fees and other closing costs payable by the
Company or any of its Subsidiaries or any brokerage commissions that would
actually be payable to any third-party broker) (the “Third-Party Purchase
Price”).  If during the Marketing
Period, the Triggering Party receives an offer for less than 95% of the
Proposed Purchase Price, then the Triggering Party, if it wishes to accept such
offer, shall so notify each Non-Triggering Party.  Within thirty (30) days after receiving such
notice (and, if such notice is given within thirty (30) days prior to the
expiration of the Marketing Period, the Marketing Period shall be extended
day-by-day to give effect to the thirty (30) day notice period of this
sentence), each Non-Triggering Party shall again have the right to deliver to
the Triggering Party a Purchase Notice. 
If an agreement is executed during the Marketing Period but the closing
under such agreement does not occur within forty-five (45) days after the end
of the Marketing Period (the “Closing Period”), provisions of this
Section 3.6 will apply as to any sale of the Property occurring after such
forty-five (45) day period. None of the Non-Triggering Parties shall have the
right to approve, object to or interfere with any sale under, and conforming
to, this Section 3.6(c) irrespective of the terms of the sale
(the Triggering Party being fully authorized and empowered to execute and
deliver all necessary documents, agreements and instruments on behalf of the
Company and any of its Subsidiaries and to make representations and warranties
on the Company’s and any of its Subsidiaries’ behalf).  In connection with the sale of the Property,
(i) the Members agree to cooperate fully and in good faith to deliver any
materials reasonably requested by the potential purchaser (all of which shall
be provided, to the extent reasonably available, within three (3) Business Days
of request (or earlier if such earlier time period is reasonable)) and to use
their reasonable best efforts to cause the sale of the Property and (ii) the
Non-Triggering Parties agree to cooperate fully and in good faith with the
Triggering Party in the assumption by any potential purchaser of the Property
Debt documentation (as long as the Equity Members and their Affiliates who are
party to any such documents are released from any liabilities that accrue after
the date of such assumption), including promptly delivering to underlying
lender any documents requested by the Triggering Party or the underlying
lender, executing any documents or agreements required by the Triggering Party
or the underlying lender in connection with any such assumption (to the extent
such documents or agreements do not materially increase such party’s
liabilities or obligations) and agreeing to remain liable on any guaranties in
respect of the New Senior Debt documentation for the periods during which  such Equity Members or their Affiliates owned
any direct or indirect interest in the Property.  During the Marketing Period, none of the
Equity Members or their Affiliates shall have the right to bid for the
Property.

 35
 

(d)                                 If only one Non-Triggering Party elects to purchase
the Property within the Election Period, then such exercise shall be deemed to
create a contract between that Non-Triggering Party, which (by so exercising)
becomes an “Electing Non-Triggering Party,” on one hand, and the Company, on
the other hand, pursuant to which the Electing Non-Triggering Party irrevocably
agrees to acquire the Property for the Proposed Purchase Price (subject to
customary closing prorations) and the closing date for such sale shall be sixty
(60) days after the making of such election, and the provisions of Section 3.6(f)
shall apply.

(e)                                  If two or more Non-Triggering Parties elect to
purchase the Property within the Election Period, then:

(1)                                  such
exercise shall be deemed to create an agreement between all of those Electing
Non-Triggering Parties to form, and they shall form, a separate entity owned by
all of them for the purpose of acquiring the Property (the “Purchasing
Entity”), with each Electing Non-Triggering Party to own a percentage of the
Purchasing Entity equal to its Pro Rata Portion, unless all of those Electing
Non-Triggering Parties agree to different ownership;

(2)                                  such
exercise shall be deemed to create a contract between the Purchasing Entity, or
all of the Electing Non-Triggering Parties (jointly or severally), on the one
hand, and the Company, on the other hand, pursuant to which the Purchasing
Entity, or all of the Electing Non-Triggering Parties (jointly or severally),
irrevocably agrees to acquire the Property for the Proposed Purchase Price
(subject to customary closing prorations) at a closing that shall occur within
sixty (60) days after the expiration of the Election Period, and the provisions
of Section 3.6(f) shall apply; and

(3)                                  the
Triggering Party shall only retain a portion of each Electing Non-Triggering
Party’s Purchase Notice Deposit that is equal to such Electing Non-Triggering
Party’s Pro Rata Portion (the “Pro Rata Deposit Amount”) and shall return that
portion of the Purchase Notice Deposit in excess of the Pro Rata Deposit Amount
to such Electing Non-Triggering Party within fifteen (15) days after the
expiration of the Election Period.

For
purposes of this Section 3.6, “Pro Rata Portion” means, with respect to an
Electing Non-Triggering Party, a percentage determined by dividing (a) the
Percentage Interest of such Electing Non-Triggering Party, by (b) the aggregate
Percentage Interests of all of the Electing Non-Triggering Parties.

(f)                                    Simultaneously with the delivery of the Purchase
Notice (and as a condition to the effectiveness of such Purchase Notice), each
Electing Non-Triggering Party shall deliver to the Triggering Party a deposit
by wire transfer of immediately available federal funds in an amount equal to
$5,000,000 (together with interest accrued thereon, the “Purchase Notice
Deposit”).  If the Non-Triggering
Party fails to deliver the Purchase Notice Deposit in the manner described
above, then the Non-Triggering Party shall be deemed to have failed to exercise
the Purchase Option. Except as described in Section 3.6(e)(iii),
the Purchase Notice Deposit shall be non-refundable to the Electing Non-Triggering
Part(ies) in the event of a failure by an Electing Non-Triggering Party or the
Purchasing Entity to consummate the purchase of the Property on the relevant
closing date (other than solely by reason of a default by the Triggering Party
or the failure of the representations listed below to be true in all material
respects), in which case the Triggering Party may terminate (or cause the
termination of) the contract created by the Proposed Sale Notice and the
Purchase Notice and (A) the Triggering Party may retain the Purchase Notice
Deposit or, if applicable, the Pro Rata Deposit Amounts of the Purchase Notice
Deposits not returned pursuant to Section 3.6(e)(iii) as liquidated damages for
the benefit and account of the Triggering Party 
only and (B) the Triggering Party shall be free to sell at any time the
Property to any Person and on any terms as the Triggering Party may determine
in its discretion, without any consent or approval of any other Member and
without having to comply with any of the terms of this Section 3.6.  The parties agree that damages to the
Triggering Party will be difficult and impracticable to ascertain in

 36
 

connection with a default by an Electing
Non-Triggering Party or the Purchasing Entity under this Section 3.6 and
the retention of the Purchase Notice Deposit or, if applicable, the Pro Rata
Deposit Amounts of the Purchase Notice Deposits 
by the Triggering Party is a reasonable estimate of such damages from
such default and shall not be considered a penalty.  If the sale of the Property fails to occur on
the relevant closing date solely by reason of a default by the Triggering Party
(other than as a result of any default by an Electing Non-Triggering Party or
the Purchasing Entity), then, at the election of the Electing Non-Triggering
Party or, if applicable, the Purchasing Entity (the “Purchasing Party”), (x)
the contract created by the exercise or exercises of the Proposed Sale Notice
shall be terminated and the Purchase Notice Deposit shall be refunded to the
Purchasing Party; or (y) the Purchasing Party may seek specific performance of
such contract, but shall have no other rights or remedies by reason of such
breach. If the closing of the sale of the Property to the Purchasing Party
occurs, then Purchase Notice Deposit or, if applicable, the Pro Rata Deposit
Amounts of the Purchase Notice Deposits not returned pursuant to Section
3.6(e)(iii) shall be applied towards the Purchase Price at closing.  The Triggering Party shall, and shall cause
the Company to, execute such instruments of transfer as are customarily
executed and reasonably requested to evidence and consummate the transfer of
the Property to the Purchasing Party; provided, however, that such documents
shall indicate that the sale of the Property is on an “As-Is,” “Where Is,”
“With-All-Faults” basis with no representations, warranties or indemnities
whatsoever, other than representations to the effect that each of the relevant
selling entities is duly organized and existing, that it is authorized and
empowered to effect the sale, that it has duly executed and delivered all
closing documents to which it is a party, that the execution, delivery and
performance of such documents does not violate any applicable law or material
agreement to which it is a party or by which it or the Company Assets are
bound.

(g)                                 Notwithstanding anything to the contrary, the
Triggering Party shall, subject to and in accordance with this Section 3.6,
have full right, power and authority (acting alone and without the consent of
any other Member) to execute, deliver and perform, for and in the name of the
Company, any and all documents, agreements and instruments, and to take any
other actions as may be required or desirable for the purpose of transferring
the Property to a Third-Party Purchaser, or the Purchasing Entity, as the case
may be.

(h)                                 Except as otherwise expressly provided herein, each
party shall bear its own legal fees and expenses in connection with a sale
under this Section 3.6, and the Triggering Party and the Purchasing
Party shall each indemnify the other against claims for brokers’ fees and
commissions.  Unless otherwise provided
in the offer from a Third-Party Purchaser, the Company shall bear any debt
repayment or assumption fees and the Company shall bear any closing costs, as
well as all costs of marketing the Property and any legal fees incurred as
seller.  If there would be substantial
transfer tax or other costs savings achieved by structuring a sale to the  Purchasing Party pursuant to this Section 3.6
as a sale of the Triggering Party’s Interest in the Company instead of the
Property, then, at the option of either the Triggering Party or the Purchasing
Party, either the Triggering Party or the Purchasing Party may elect to have
the Triggering Party’s Interest transferred to the Purchasing Party in which
case all of the provisions of this Section 3.6 shall apply mutatis
mutandis, with such changes as are appropriate to reflect the fact that
Interests rather then the Property are being sold; provided, however, that if
the Triggering Party elects to structure the sale as a sale of the Triggering
Party’s Interest, then the Triggering Party shall also provide representations
to the Purchasing Party as to ownership of its Interest free and clear of all
liens and encumbrances.

3.7                                 Purchase of
Additional MLPC Property. 
Notwithstanding anything to the contrary stated herein, if the [*] Tract
or the [*] Tract is purchased this agreement shall automatically be amended
without the need of any further documentation to amend the definition of
“Property” to include the description of the newly acquired [*] Tract or [*]
Tract.

 37
 

ARTICLE 4

RIGHTS AND DUTIES OF MEMBERS; EVENTS OF DEFAULT

4.1                                 Duties, Obligations
and Compensation of Gengate.

(a)                                  In addition to such duties as are described elsewhere
in other provisions of this Agreement, GHGP, in consultation with the Property
Manager and the Asset Manager, shall, using (and subject to the availability
of) the Company’s funds: (i) prepare and deliver to the Managing Members (or
cause to be prepared and delivered to the Managing Members) an Annual Budget
and a proposed Business Plan for each Budget Year (provided that Property
Manager provides GHGP with the information requested by GHGP that is reasonably
necessary to prepare such Annual Budget and proposed Business Plan); (ii)
deliver to the Managing Members promptly upon its receipt, copies of all (x)
summonses and complaints served on the Company or GHGP (as a Member of the
Company or otherwise relating to or affecting the Company) and (y) notices of
default on any loan or other indebtedness of the Company or on any liens
against the Property or any Company Asset; and (iii) to the extent otherwise
permitted under this Agreement and except to the extent that the Property
Manager is required to do the same under its respective property management
agreement, take such steps as may be necessary or appropriate to cause the
Company or any Subsidiary to comply with the terms of any Loan Agreements and
other material agreements to which the Company or any Subsidiary is a party or
by which the Company or any Subsidiary is bound (and shall take reasonably
appropriate steps to cure any non-compliance to the extent permitted under this
Agreement and will otherwise promptly notify the Managing Members of any non-compliance);
provided, that GHGP acknowledges that it, and not the Property Manager, is
primarily responsible for the Capital Improvement Program and ensuring that the
Capital Improvement Program does not conflict with the terms of the Loan
Agreements and other material agreements.

(b)                                 In the event GHGP shall fail to perform or comply
with, or to cause the performance of or compliance with, any obligation or duty
imposed on it pursuant to this Agreement, then, without limiting any other
remedy available to any of Managing Members, any of the Managing Members shall
have the right (but not the obligation) to perform or comply with, or cause the
performance of or compliance with, such obligation, at the cost or expense of
the Company.

4.2                                 Other Activities of
the Members.  Each Member may engage
or invest in any other activity or venture or possess any interest therein
independently or with others.  None of
the Members, the Company, their respective Affiliates or any other Person
employed by, related to or in any way affiliated with any Member or the Company
shall have any duty or obligation to disclose or offer to the Company or the
Members, or obtain for the benefit of the Company or the Members, any other
activity or venture or interest therein. 
Except as may be set forth in any other agreement, none of the Company,
the Members, their respective Affiliates, the creditors of the Company or any
other Person having any interest in the Company shall have (A) any claim, right
or cause of action against any Member or any other Person employed by, related
to or in any way affiliated with, any Member by reason of any direct or
indirect investment or other participation, whether active or passive, in any
such activity or venture or interest therein or (B) any right to any such
activity or venture or interest therein or the income or profits derived
therefrom.

4.3                                 Indemnification.  No Member shall be liable, responsible or
accountable in damages or otherwise to the Company, any third party or to any
other Member for (i) any act performed within the scope of the authority
conferred on such Member by this Agreement except for the gross negligence,
fraud or willful misconduct of such Member in carrying out its obligations
hereunder, (ii) such Member’s failure or refusal to perform any act, except
those required by the terms of this Agreement, (iii) such

 38
 

Member’s performance of, or failure to perform, any act on the
reasonable reliance on advice of legal counsel to the Company or (iv) the
negligence, dishonesty or bad faith of any agent, consultant or broker of the
Company selected, engaged or retained in good faith and with reasonable
prudence.  To the fullest extent
permitted by law, in any threatened, pending or completed action, suit or
proceeding, each Member and its directors, officers, and managing members shall
be fully protected and indemnified and held harmless by the Company against all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, proceedings, costs, expenses and disbursements of any kind or nature
whatsoever (including, without limitation, reasonable attorneys’ fees, costs of
investigation, fines, judgments and amounts paid in settlement, actually
incurred by such Member in connection with such action, suit or proceeding) by
virtue of its status as Member or with respect to any action or omission taken
or suffered in good faith as a Member or otherwise for or on behalf of the
Company, other than liabilities and losses resulting from the gross negligence,
fraud or willful misconduct of such Member; provided, however, such
Member shall not be so indemnified for any acts determined to be in
contravention of an express term of this Agreement, if any.  The indemnification provided by this Section
4.3 shall be recoverable only out of the assets of the Company, and no Member
shall have any personal liability (or obligation to contribute capital to the
Company) on account thereof.

4.4                                 Compensation of
Members and their Affiliates; Goldman, Sachs & Co. as Exclusive Financial
Advisor.

(a)                                  No Member or any Affiliate of any Member, shall be
entitled to compensation from the Company in connection with any matter that
may be undertaken in connection with the fulfillment of its duties and
responsibilities hereunder, except (i) as provided in this Section 4.4, Section
4.10, Section 4.12, Section 4.13 or Article 8; (ii) as set forth in the Asset
Management Agreement; or (iii) as set forth in an Approved Budget.  The Members recognize that in connection with
a Loan Guaranty or other recourse obligation provided or incurred by a Member
(or an Affiliate of a Member) to a lender providing financing to the Company,
the Subsidiaries or the Property (other than limited, customary recourse
carve-outs to a non-recourse financing, such as fraud and misappropriation and
environmental indemnities), the Member (or such Affiliate) providing or
incurring such guaranty or other recourse obligation shall be paid by the
Capital Members other than MLPC an aggregate fee equal to two percent (2%) per
annum of the amount of such guaranty or other recourse obligation (the “Credit
Enhancement Fee”).  Any amounts
received as Credit Enhancement Fees shall not be deemed to be a distribution to
or should affect the Capital Account of the Member providing such Loan Guaranty
or recourse obligations.

(b)                                 The Members covenant and agree that the Company will
retain Goldman, Sachs & Co. (as well as such Affiliate(s) as Goldman, Sachs
& Co. may designate from time to time) to provide all financial advisory,
sales advisory and investment banking services to the Company, including,
without limitation, in connection with any sale, financing, refinancing,
merger, combination, contribution, disposition or similar transaction involving
the Company or the Property.  If Goldman,
Sachs & Co. (and/or its Affiliate(s)) agrees to accept such engagement,
Goldman, Sachs & Co. (and/or such Affiliate(s)) shall be entitled to
receive from the Company (upon completion of any such transaction) its
customary fees and commissions for such services and its customary
indemnification.  In the event that
Goldman, Sachs & Co. (and/or such Affiliates(s)) procures any loan for the
Company, Goldman, Sachs & Co. (and/or such Affiliate(s)) shall be entitled
to a fee equal to one percent (1%) of the total amount of such loan procured.  Other than an origination fee to be paid to a
lender providing financing for any Property or the Company Assets, no other
fees shall be paid to any other Person in connection with the financing of any
Property, the Company Assets or the Company. 
Goldman, Sachs & Co. (and/or such Affiliate(s)), shall be third party beneficiaries of this
Section and shall have the right to enforce the terms of this Section to their
fullest extent.

 39
 

4.5                                 Dealing with
Members.  The fact that a Member, an
Affiliate of a Member, or any officer, director, employee, partner, consultant
or agent of a Member, is directly or indirectly interested in or connected with
any Person employed by the Company to render or perform a service, or any
Person from or to whom the Company may buy or sell any assets or property or
have other business dealings, shall not prohibit the Company from employing
such Person or from dealing or transacting business with such Person on market
terms, and neither the Company nor any of the other Members shall have any
right in or to any income or profits derived therefrom by reason of this
Agreement.  The foregoing is not intended
to modify the restrictions on the authority of any Member under Section 3.2(d).

4.6                                 Use of Company
Property.  No Member shall make use
of the funds or property of the Company, or assign its rights to specific
Company property, other than for the business or benefit of the Company.  Employees of the Members shall have the right
to stay at the Property without charge to the extent that such stay is related
to the Company’s business. Title to the Company Assets shall be deemed to be
owned by the Company as an entity, and no Member, individually or collectively,
shall have any ownership interest in such Company Assets or any portion thereof.  All Company Assets shall be recorded as the
property of the Company on its books and records, irrespective of the name in
which legal title to such Company Assets is held.

4.7                                 Designation of Tax
Matters Member.  Whitehall Street
shall act as the “tax matters partner” of the Company, as provided in the
regulations pursuant to Section 6231 of the Code.  Each Capital Member hereby approves of such
designation and agrees to execute, certify, acknowledge, deliver, swear to,
file and record at the appropriate public offices such documents as may be
deemed necessary or appropriate to evidence such approval.  To the extent and in the manner provided by
applicable Code sections and regulations thereunder, the Tax Matters Member (a)
if required shall furnish the name, address, profits interest and taxpayer
identification number of each Capital Member to the IRS and (b) shall inform
each Capital Member of administrative or judicial proceedings for the
adjustment of Company items required to be taken into account by a Member for
income tax purposes and shall provide each Capital Member the opportunity to
participate in such proceedings at such Capital Member’s sole expense.  Each Capital Member hereby reserves all
rights under applicable law, including the right to retain independent counsel
of its choice at its expense.

4.8                                 GKH and GHGP Rights
Upon Default.  Upon the occurrence of
a Event of Default:

(a)                                  The Whitehall Group may deliver to GKH a notice,
describing the nature of the Event of Default (such notice, a “Default
Notice”).

(b)                                 If the Default Notice alleges the occurrence of any
Event of Default of the type described in clauses (3), (4) or (5) of the
definition of “Event of Default” (even if any other type of Event of Default is
also alleged), then the removal of GKH as Managing Member and termination of
GHGP’s rights to assume, take or consent to any action or decision by the
Company, along with any other remedies the Whitehall Group chooses to exercise
pursuant to Section 4.9, will be effective automatically and immediately upon
delivery.

(c)                                  If the Default Notice alleges only the occurrence of
an Event of Default of the type described in clauses (1) or (2) of the
definition of “Event of Default” (after the expiration without cure of any cure
period provided in clauses (1) or (2)) then, unless either an arbitration award
or judicial determination (whether or not the Managing Members, the Company or
the Whitehall Group is a party to the proceeding giving rise to the award or
determination) has already been issued confirming the occurrence of any event
that would constitute an Event of Default, or a Gengate Member has acknowledged
in writing the existence of facts that are the basis for the Default Notice (in
either which event, no contest of the Default Notice and its consequences may
be made by a Gengate Member),  GKH

 40
 

may, within 10 days after delivery of the
Default Notice, contest such allegation by delivering written notice (a “Dispute
Notice”) within that 10-day period to the Whitehall Group and submitting
the matter to arbitration in accordance with the provisions of Section
12.8.  The only issue that may be
determined by an arbitration commenced in response to a Default Notice is
whether an Event of Default of the type described in clauses (1) or (2) of the
definition of “Event of Default” existed on or after the date that Default
Notice was delivered.

(d)                                 If GKH fails to give a Dispute Notice within that
10-day period, then (A) it will be automatically and conclusively deemed that
the allegations in the Default Notice are true, (B) GKH will automatically be
removed as a Managing Member effective on the last day of that 10-day period
and (C) the Whitehall Group may exercise all of its rights hereunder,
including, but not limited to, those specified in Section 4.9.

(e)                                  If GKH timely delivers a Dispute Notice and submits
the matter to arbitration, and the arbitration panel determines that one or
more of the events described in the Default Notice did occur, or otherwise
determines that an Event of Default has occurred, then (A) GKH will
automatically be removed as the Non-Managing Member effective on the day the
arbitration panel issues its determination and (B) the Managing Member may
exercise all of its rights hereunder, including, but not limited to, those
specified in Section 4.9.

(f)                                    Pending the determination of the arbitration panel,
GKH and GHGP will remain Members and GKH will continue to be a Managing Member
and GHGP will continue to have Administrative Rights and the Whitehall Group
may not exercise any rights or remedies in respect of the Event of Default that
is the subject of the Dispute Notice.

(g)                                 If the arbitration panel determines that none of the
events described in the Default Notice occurred and that no other Event of
Default has occurred, then (A) GKH will not be removed as the Non-Managing
Member and (B) the Whitehall Group may not exercise its rights with respect to
the Default Notice that gave rise to the arbitration (but the Managing Member
will not be precluded from delivering Default Notices upon the occurrence of
any other Event Default or from exercising its rights with respect to those
Default Notices).

4.9                                 Events of Default.  Notwithstanding anything to the contrary
contained in this Agreement but subject to the provisions Section 4.8, at any
time from and after the occurrence of an Event of Default:

(a)                                  The Whitehall Group (or any Person or Persons
designated by the Whitehall Group) shall have the right to purchase the
Interest of the Gengate Members, and each Gengate Member shall be required, and
hereby agrees, to sell its Interest to the Whitehall Group (or its designee),
in accordance with and subject to the following terms:

(i)                                     Any member of the Whitehall Group may deliver to a
Gengate Member a default notice (a “Default Purchase Notice”) describing
with reasonable specificity the nature of the Event of Default it caused and
stating that the Whitehall Group will exercise its right to purchase the
Interest of GHGP and GKH.  A Default
Purchase Notice shall also specify a closing date for such purchase and sale,
which date shall be not less than twenty (20) nor more than one hundred twenty
(120) days after the date of delivery of such Default Purchase Notice.  Failure by a member of the Whitehall Group to
deliver a Default Purchase Notice shall not constitute a waiver of an Event of
Default (or any other breach or default). 
No Event of Default (or any other breach or default) shall be waived nor
shall any duty to be performed be altered or modified except by written
instrument signed by the Managing Members. 
One or more waivers or failure to give notice of an Event of Default
shall not be construed as a waiver of a subsequent or

 41
 

continuing Event of Default.  The
Whitehall Group may elect to proceed in any manner permitted in this Agreement
(and to pursue any other remedies available at law or in equity) with respect
to each Gengate Member regardless of how the Whitehall Group elects to proceed
with respect to the other Gengate Member.

(ii)                                  The purchase price for the Interest of any Gengate
Member (the “Default Purchase Price”) shall be (x) in the case of
purchase by the Whitehall Group upon an Event of Default caused by (A) a breach
of this Agreement and/or an event (other than the sale of the Property) that
would permit the termination by the Company of the Asset Management Agreement,
(B) Bankruptcy of GHGP, GKH or the Asset Manager or (C) gross negligence of
GHGP, GKH or the Asset Manager, an amount equal to the cash amount such Gengate
Member would have received as a liquidating distribution (excluding any amount,
if any, that would have been payable to such Gengate Member as its portion of
the Actual Promote) under Article 10 hereof if the Company had sold all of the
Company Assets on the date of such purchase by the Whitehall Group (or their
designee(s)) for a sales price equal to one hundred percent (100%) of the
Appraised Value of the Company Assets (less a reasonable estimate of the costs
and expenses, including reasonable and customary brokerage commissions, that
would have been incurred by the Company, as seller, in making such sale) and
(y) in any other case, an amount equal to the lesser of (a) the Capital
Contributions made by such Defaulting Member less distributions previously made
to such Defaulting Member and (b) the cash amount such Gengate Member would
have received as a liquidating distribution (excluding any amount that would
have been payable to such Defaulting Member as its portion of the Actual
Promote) under Article 10 hereof if the Company had sold all of the Company
Assets on the date of such purchase by the Whitehall Group (or its designee(s))
for a sales price equal to ninety-five percent (95%) of the Appraised Value of
the Company Assets (less a reasonable estimate of the costs and expenses,
including reasonable and customary brokerage commissions, that would have been
incurred by the Company, as seller, in making such sale).  The costs of obtaining any such Appraised
Value shall be borne by the Gengate Members and shall be deductible against the
Default Purchase Price.  The calculation
of the liquidating distribution hereunder for the Default Purchase Price shall
be made by the independent certified public accountants who then act as the
Company’s auditors.

(iii)                               Upon receipt of the final determination of the Default
Purchase Price, the Whitehall Group shall have the right, by notice given
within thirty (30) days of being notified of such determination, to revoke the
Default Purchase Notice and, in such case, (i) the Whitehall Group shall have
no obligation to purchase the Defaulting Member’s Interest and (ii) the
Whitehall Group shall reimburse the Gengate Members for their out-of-pocket
costs associated with obtaining the Appraised Value.

(iv)                              In the event that the Whitehall Group elects under
this Section 4.9(a) to purchase any Gengate Member’s Interest in the Company
and, after receipt of the Appraised Value, still wishes, in its discretion, to
consummate such purchase, the Default Purchase Price shall be paid to such
Gengate Member on the closing of the purchase of such Interest.  Simultaneously with the receipt of the
Default Purchase Price, such Gengate Member shall execute and deliver, and, in
such event and for such purpose, such Gengate Member hereby irrevocably constitutes
and appoints each member of the Whitehall Group (and any of its successors or
assigns) as a true and lawful attorney-in-fact to execute and deliver for and
on such Gengate Member’s behalf, all documents that may be necessary, in the
opinion of counsel for the Whitehall Group, to effect a transfer of such
Gengate Member’s entire Interest to the Whitehall Group (or their
designee(s)).  The Whitehall Group shall
take such Interest of such Gengate Member subject to, and shall assume and
agree to pay, such Gengate Member’s share of all

 42
 

liabilities of the Company as of the date of such sale.  Closing costs and all other charges (except
for payment of transfer and gains taxes, which shall be payable by such Gengate
Member) involved in closing the sale shall be divided pro rata (in accordance with their
relative Percentage Interests) between such Gengate Member on the one hand, and
the Whitehall Group on the other (except each party shall pay its own
attorneys’ fees). Such Gengate Member shall transfer its Interest free and
clear of all liens, encumbrances and adverse claims (other than by, through or
under the Company).  In the event that
such Gengate Member shall have created or suffered any such unauthorized liens,
encumbrances or other adverse interest against its Interest or such Gengate
Member is a Debtor Member on any Member Loan, the Whitehall Group shall, to the
fullest extent permitted by law, be entitled to either an action for specific
performance to compel such Gengate Member to have such adverse interests
removed and to have such Member Loan repaid in full from the proceeds of the
sale of such Interest, in which case the closing date shall be adjourned for
such purpose, or to an appropriate offset against the Default Purchase Price.

(v)                                 If the Whitehall Group and any Gengate Member shall
be unable to agree earlier to the Appraised Value then the Whitehall Group and
such Gengate Member shall each, within five (5) days after the date that is
thirty (30) days after the delivery of a Default Purchase Notice (the “Appointment
Date”), appoint an Appraiser to determine the Appraised Value of the
Company Assets.

(vi)                              For purposes of this Section 4.9(a), (x) “Gengate
Member” shall be deemed to include the Gengate Member, together with all
Transferees of any portion of the Interest of the Gengate Member held as of the
Effective Date and (y) “Interest” shall be deemed to include the Interest of
the Defaulting Member and the Interest of any Transferee referred to in
preceding clause (x).

(b)                                 In addition to its remedies under Section 4.9(a), if
GHGP or GKH is the Defaulting Member, the Whitehall Group may, in its
discretion, elect to divest GHGP of its Administrative Rights and/or GKH of it
consent rights with respect to Major Decisions, to terminate the Asset
Management Agreement and/or to withhold from the Gengate Members any amounts
otherwise distributable to either of the Gengate Members on account of or
pursuant to 8.1(b)(vi)(a), Section 8.1(b)(vi)(a), 8.1(c)(iv)(a) and Section
8.1(c)(v)(a).  Upon such divestiture, (i)
the Whitehall Group shall have the right to assume such Administrative Rights
or to designate another Person (which may be an Affiliate of the Whitehall
Group) to so assume, in which case, in the Whitehall Group’s discretion, any
amounts otherwise distributable to the Gengate Members on account of or
pursuant to 8.1(b)(v)(a), Section 8.1(b)(vi)(a), 8.1(c)(iv)(a) and Section
8.1(c)(v)(a) may instead be distributable to such designee.  This Section 4.9(b) shall not constitute a
waiver of, or exculpation from, claims by, or indemnification from, the Company
with respect to any matter arising prior to the divestiture of GHGP
Administrative Rights or termination of the Asset Management Agreement.

(c)                                  Notwithstanding anything to the contrary herein, none
of the rights and remedies granted to any members of the Whitehall Group in
this Section 4.9 shall be deemed an exclusive remedy of the members of the
Whitehall Group or their Affiliates, but shall be in addition to all other
rights and remedies available to any of them whether under the terms of this
Agreement (including, without limitation, Section 8.1(d)), at law, in equity or
otherwise.

(d)                                 Each of GHGP and GKH hereby grants to the Whitehall
Group a first priority, perfected security interest (within the meaning of the
Uniform Commercial Code in effect in the State of Delaware) in its respective
Interest as security for its obligation, under the terms and conditions
specified in this Section 4.9, to Transfer its Interest to the Whitehall Group
(or its designee).  If GHGP and GKH

 43
 

defaults with respect to such Transfer
obligation, the Whitehall Group shall have the right to exercise all of the
rights and remedies of a secured party under the applicable law, with respect
to GHGP’s and GKH’s.  Each of GHGP and
GKH hereby authorizes the Whitehall Group to take, and agrees to take within
five (5) days after any request by the Whitehall Group, all actions as the
Whitehall Group may be reasonably necessary as determined by the Whitehall
Group to ensure that the Whitehall Group can perfect and realize on such
security interest, including the execution, delivery and filing of financing
statements or similar instruments. This Agreement is intended to constitute a
security agreement within the meaning of the Uniform Commercial Code in effect
in the State of Delaware.  Nothing in
this Section 4.9(f) shall be deemed to limit or override (prior to the
occurrence of an Event of Default) any Transfer rights granted to the
principals of GHGP or GKH pursuant to Section 9.1(b) or Section 9.1(c) or any
other right of GHGP or GKH in respect of its Interest pursuant to this
Agreement.

4.10                           Development Management
Fee. Asset Manager or its designee shall be paid an
administration/development management fee (“Development Management Fee”)
in an amount equal to, with respect to the Capital Improvement Program, four
percent (4%) of the aggregate hard and soft costs of such renovation (exclusive
of land costs). The Development Management Fee shall be paid monthly in arrears
in twelve (12) equal installments on the tenth (10th) Business Day of each
following month during the time in which the Property is undergoing renovations
contemplated by the Capital Improvement Program (based on the budgeted project
cost, with a reconciliation on completion).

4.11                           Marketing Rights of MLPC.  So long as MLPC is a member of the Company,
MLPC, or its designee, shall have those certain marketing rights set forth on Schedule 4.11
attached hereto, subject to the rights of Property Manager under the Property
Management Agreement.

4.12                           Residential Unit Sales
Fee.  Upon the closing of the sale of
a dwelling unit and/or residential unit by the Company or one of its
Subsidiaries to any Third Party Purchaser, the Company shall pay Asset Manager
or its designee a dwelling unit/residential unit sales fee equal to one percent
(1%) of sales price paid by the purchaser.

4.13                           Sponsor Residential Space.  GKH and its principals shall be permitted to
acquire up to 3,000 square feet of the residential space located on the
Property at a per square foot price equal to (i) the aggregate amount of
Capital Contributions plus the aggregate amount of outstanding Property Debt
divided by (ii) the total number of square feet of saleable residential space
on the Property (the “Residential Purchase Price”); provided, that GKH
and its principals shall not sell any residential space they acquire without
the prior written consent of Whitehall Street or Whitehall Employee Fund, for
at least five (5) years following the purchase of such residential space.  Upon the earlier of the sale of the Property,
the sale or transfer of GKH’s or the Whitehall Group’s entire Interest in the
Company or the liquidation of the Company, an amount equal to (i) the total
square feet of residential space purchased by GKH multiplied by (ii) difference
of the average per square foot sales price of the residential space (net of
customary sales commissions and closing to the extent Company does not have to
pay same) over the Residential Purchase Price (the “Residential Liquidation
Value”) shall be deducted from GKH’s Capital Account, or in the event that
GKH’s Capital Account is less than the Residential Liquidation Value, any
excess Residential Liquidation Value remaining after deducting the GKH’s
Capital Account shall be deducted from distributions of profit that would
otherwise be given to GKH and GHGP by the Company pursuant to Section 8.1.  Notwithstanding the foregoing, in the event
that all the Capital Contributions made by the Whitehall Group are not returned
to the Whitehall Group after such sale, transfer or liquidation taking into
account the adjustment of GKH’s and GHGP’s Capital Account and profit
distributions pursuant to the preceding sentence, instead of taking the actions
set forth in the preceding sentence, GKH or its affiliates shall either (i)
relinquish the residential space they acquired and sell it at market rate or
(ii) directly reimburse the Whitehall Group for its unreturned capital
contributions up to the amount equal to the Residential Liquidation Value.

 44
 

4.14                           Square Footage
Calculations.  For purposes of this Agreement, all square
footage calculations shall be made utilizing the Building Owners and
Managers Association “Standard Method for Measuring Floor Area.”

ARTICLE 5

BOOKS AND RECORDS; REPORTS

5.1                                 Books and Records.  At all times during the continuance of the
Company, GHGP shall keep or cause to be kept true and complete books and
records of the Company in which shall be entered fully and accurately each
transaction of the Company.  Such books
and records shall be kept on the basis of the Fiscal Year in accordance with
the accrual method of accounting, and shall reflect all transactions of the
Company in accordance with generally accepted accounting principles.  The books and records shall reflect that for
the Fiscal Year ending December 31, 2006, MLPC became a member on the Effective
Date.

5.2                                 Availability of
Books and Records; Return of Books and Records.  All of the books and records referred to in
Section 5.1 (which shall include an executed copy of this Agreement and the
Certificate, and any amendments thereto), shall at all times be maintained at
the principal office of the Company or such other location as the Managing
Members shall reasonably approve (which other location, upon such approval,
shall be communicated to all of the Members), and upon reasonable notice to
GHGP, shall be open to the inspection and examination of the Members or their
representatives during reasonable business hours.  If GHGP has been divested of its
Administrative Rights pursuant to Section 4.9(b) or has voluntarily ceased to
manage or administer the day-to-day business of the Company as contemplated by
Section 3.1, Section 3.2 and Section 4.1 (or if GHGP shall no longer be a
Member), GHGP shall deliver immediately to Whitehall Street or Whitehall Employee
Fund or to such Person as may be designated in writing by Whitehall Street or
Whitehall Employee Fund) copies of all documents, files, books, papers,
computer files, records and accounts relating to the Property, the Company
Assets or the Company that are in the possession of GHGP, GKH or any of its
Affiliates.

5.3                                 Reports and
Statements; Annual Budgets and Business Plans.

(a)                                  For each Fiscal Year, GHGP shall send to each Person
who was a Capital Member at any time during such Fiscal Year, by no later than
February 28 of the succeeding Fiscal Year, an annual report of the Company
including an annual balance sheet, profit and loss statement and a statement of
changes in financial position, and a statement showing distributions to the
Members all as prepared in accordance with generally accepted accounting
principles consistently applied (as modified by the Uniform System of Accounts)
and audited by the Company’s independent public accountants, which initially
shall be PricewaterhouseCoopers or another nationally recognized accounting
firm (as the Whitehall Group shall decide), and a statement showing allocations
to the Members of taxable income, gains, losses, deductions and credits, as
prepared by such accountants (it being acknowledged that GHGP’s obligations
hereunder are not to guaranty timely delivery of audits, tax returns or similar
third-party work product, and the failure of the auditor or another third party
to make such delivery shall not itself constitute Event of Default hereunder on
the part of GHGP).  For each quarter of
each Fiscal Year, GHGP shall send to each Person that was a Member at any time
during such quarter, within forty-five (45) days after the end of such quarter,
(i) quarterly financial statements of the Company, including a quarterly
balance sheet, profit and loss statement and a statement of changes in
financial position, and a statement showing distributions to the Members, all
as prepared in accordance with generally accepted accounting principles
consistently applied (as modified by the Uniform System of Accounts) and (ii)
such tax estimates as any such Member shall reasonably request.  In addition, GHGP shall send to each Member
(i) within thirty (30) days after the end of each month of each Fiscal Year a
monthly report

 45

setting forth such financial and operating
information of the Company on a cash basis, in form and substance approved by
the Managing Members and GKH (acting reasonably) after the Effective Date, (ii)
by no later than February 28 of each Fiscal Year, completed IRS Schedules K-1
prepared by the Company’s accountants and (iii) such other information
concerning the Company and reasonably requested by any Member as is necessary
for the preparation of each Member’s federal, state and local income or other
tax returns (it being acknowledged that GHGP’s obligations hereunder are not to
guaranty timely delivery of audits, tax returns or similar third-party work
product, and the failure of the auditor or another third party to make such
delivery shall not itself constitute Event of Default hereunder on the part of
GHGP.  GHGP shall prepare and deliver
timely to the lender under any Loan Agreement or other loan documents to which
the Company is a party all reports and statements required by such lender.

(b)                                 Not later than (i) November 1, 2006, GHGP shall
prepare or cause to be prepared for the Capital Members’ review an Annual
Budget with respect to the Budget Year commencing on January 1, 2007, and (ii)
November 1 of the prior Budget Year with respect to each subsequent Budget
Year, GHGP shall prepare or cause to be prepared for the Managing Members’
review for the Budget Year in question, an Annual Budget for the Company and a
proposed Business Plan.  Not later than
thirty (30) days after receipt by the Managing Members of an Annual Budget,
proposed Business Plan or a proposed update to the foregoing (or such longer
period as the Whitehall Group may request on notice to GHGP), either Whitehall
Street or Whitehall Employee Fund may deliver a notice (an “Objection Notice”)
to GHGP stating that such Managing Member objects to any information contained
in or omitted from such Annual Budget, proposed Business Plan or update and
setting forth the nature of such objections. 
With respect to all or any portion of such Annual Budget, proposed
Business Plan or update as to which no Objection Notice is delivered prior to
such thirtieth (30th) day (or such longer period as the Whitehall Group may
have requested), the Annual Budget, proposed Business Plan or update, or the
applicable portion thereof, will be deemed to have been accepted and consented
to in accordance with Section 3.2(d)(4) or (5). 
If the Objection Notice is timely delivered, GHGP shall modify the
Annual Budget, proposed Business Plan or update, in accordance with any of the
Managing Members’ objections, and shall resubmit the same to the Managing
Members for the Managing Members’ approval within fifteen (15) days thereafter,
and any of the Managing Members may deliver further Objection Notices (if any)
within fifteen (15) days thereafter (in which event, the re-submission and
review process described above in this sentence shall continue until the Annual
Budget, proposed Business Plan or update in question is accepted and consented
to by the Managing Members or deemed to be so accepted and consented to with
Section 3.2(d)(4) or (5)).  As to any
portion of an Annual Budget that is the subject of an Objection Notice, the
Annual Budget for the immediately preceding Budget Year shall be deemed to
control (adjusted upwards by four percent (4%) per each disputed line-item)
pending resolution of the disputed items in accordance with Section 3.2(d)(4)
or (5) and this Section 5.3(b).

5.4                                 Accounting Expenses.  All out-of-pocket expenses payable to
Persons, including the Property Manager pursuant to the Property Management
Agreement, the Asset Manager pursuant to the Asset Management Agreement or GHGP
in connection with the keeping of the books and records of the Company and the
preparation of audited or unaudited financial statements and federal, state and
local tax and information returns required to implement the provisions of this
Agreement or required by any governmental authority with jurisdiction over the
Company shall be borne by the Company as an ordinary expense of its business to
the extent set forth in an Approved Budget.

5.5                                 Bank Account.  To the extent that the Company does not
request the Asset Manager to do so, GHGP shall, as soon as reasonably
practicable, establish and maintain segregated bank accounts in the Company’s
name and for the Company’s business, which accounts shall, to the extent
reasonably practicable, be interest-bearing. 
The signature of an authorized representative of Whitehall Street shall
be required for any withdrawal or check, other than payments made in accordance
with an Approved Budget, in excess of $25,000 (or upon notice to GHGP, such
greater amount as either Whitehall Street or

 46
 

Whitehall Employee Fund may from time to time determine).  Withdrawals or checks not in excess of
$25,000 (or upon notice to GHGP, such greater amounts as Whitehall Street or
Whitehall Employee Fund may from time to time determine) and withdrawals or
checks made in accordance with an Approved Budget may be made by an authorized
representative of GHGP to the extent that GHGP is permitted hereunder to incur
the expense or other liability paid or discharged with the proceeds of such
withdrawal or check without the prior consent or approval of Whitehall Street
or Whitehall Employee Fund.  Any account
that GHGP establishes must at all times have at least one officer of Whitehall
Street or Whitehall Employee Fund acting as an authorized signatory for the
account and shall allow for such authorized signatory to withdraw money from
the Accounts without the consent of GHGP. GHGP will not open any other bank
accounts to hold or receive funds belonging to the Company or any Subsidiary.

5.6                                 COGNOS Database.  GHGP understands that the Whitehall Group
have developed a database for monitoring investments called “COGNOS” and hereby
agrees to cooperate with the Whitehall Group in providing the data required for
such database.

5.7                                 Reportable
Transactions.  Each Member agrees to
notify the Company in writing if (a) it intends to treat any of the
transactions described in or contemplated by this Agreement as a “reportable
transaction” within the meaning of Treasury Regulations Section 1.6011-4 or (b)
it is classified as an individual or corporation for U.S. federal income tax
purposes.

ARTICLE 6

CAPITAL CONTRIBUTIONS, LOANS AND LIABILITIES

6.1                                 Initial Capital
Contributions and Initial Capital Accounts of the Members.

(a)                                  As of the Effective Date, the Members have funded
Capital Contributions in the amounts set forth in Schedule 6.1 hereto.  The Members recognize that, at the Effective
Date MLPC is deemed to have contributed $7,500,000 as a Capital Contribution;
of that amount, $4,090,909 has been contributed by MLPC in lieu of later
Additional Capital Contributions pursuant to Mandatory Capital Calls, as
contemplated by the last sentence of Section 6.2.  The MLPC Advance Capital Amount shall be invested
by the Company as directed by MLPC in its discretion from time to time.

(b)                                 As of the Effective Date, the Members shall have the
initial Percentage Interests as set forth below:

	
  Member

  	
   

  	
  Percentage Interest

  	
   

  
	
  Whitehall Street

  	
   

  	
  40.4234

  	
  %

  
	
  Whitehall Employee Fund

  	
   

  	
  10.6480

  	
  %

  
	
  GKH

  	
   

  	
  27.5000

  	
  %

  
	
  GHGP

  	
   

  	
  0.0000

  	
  %

  
	
  MLPC

  	
   

  	
  21.4286

  	
  %

  
	
  Total

  	
   

  	
  100.0000

  	
  %

  

 

6.2                                 Capital Calls.  Any Managing Member may, at any time or
times, require all Capital Members, and all Capital Members hereby agree, to
make additional cash capital contributions (“Additional Capital
Contributions”) in an amount up to the Mandatory Capital Call Threshold
(for the avoidance of doubt any funds necessary in excess of the Mandatory
Capital Call Threshold may be the

 47
 

subject of a Discretionary Capital Call pursuant the immediately
following sentence) to the Company that (i) any Managing Member determines is
necessary to fund the costs and expenses of the Capital Improvement Program
including costs with respect thereto that are in excess of the Capital
Improvement Budget, (ii) any Managing Member determines is necessary to
reimburse Whitehall Group for any amounts paid by the Whitehall Group or its
Affiliates pursuant to any Loan Guaranty, including the Improvement Letter of
Credit Reimbursement Agreement and/or (iii) any Managing Member determines is
necessary to fund any Necessary Expenditure (Capital Calls pursuant to clauses
(i), (ii) and (iii) referred to herein as “Mandatory Capital Calls”). In
addition, any Managing Member may, with the approval of all of the other
Members, at any time or times, require all Capital Members, and all Capital
Members hereby agree, to make Additional Capital Contributions to the Company
in excess of the Mandatory Capital Call Threshold that (A) such Managing Member
determines are necessary to fund the costs and expenses of the Capital
Improvement Program including costs with respect thereto that are in excess of
the Capital Improvement Budget, (B) any Managing Member determines is necessary
to reimburse Whitehall Group for any amounts paid by the Whitehall Group or its
Affiliates pursuant to any Loan Guaranty, including the Improvement Letter of
Credit Reimbursement Agreement and/or (C) such Managing Member determines is
necessary to fund any Necessary Expenditure, and (D) such Managing Member
determines is otherwise necessary to fund expenses or liabilities of the
Company (Capital Calls pursuant to clauses (A) through (D) are referred to
herein as “Discretionary Capital Calls”).  Any Capital Call (i) shall be made by written
notice sent to all of the Capital Members, such written notice shall be any
Managing Member acting alone (in the case of a Mandatory Capital Call), or by
all of the Managing Members acting together (in the case of Discretionary
Capital Call), (ii) shall provide not less than thirty (30) days’ advance
notice before the Additional Capital Contributions requested thereby are due
and payable, and (iii) shall be apportioned pro rata among the Capital Members in accordance with each
Capital Member’s Percentage Interest. 
Notwithstanding the foregoing, MLPC shall not be subject to a Mandatory
Capital Call until such time as a total of $27,500,000 has been contributed by
the other Members ($35,000,000 less MLPC’s capital contribution of $7,500,000).

(a)                                  If any Capital Member (or an Affiliate thereof)
agrees to provide a Loan Guaranty, any reimbursement the Company shall disburse
to such Capital Member shall include interest at a rate of fifteen percent
(15%) per annum from the date such amounts are funded.

(b)                                 If one or more of the Managing Members makes a
Capital Call in accordance with Section 6.2(a), and any Capital Member fails to
make the capital contributions required to be made pursuant to such Capital
Call, then (i) such Managing Member may elect to rescind such Capital
Call by delivering notice of the election within sixty (60) days after such
Capital Call was made (in which event any amounts funded by the Capital Members
will be refunded to them and will not be deemed to be Capital Contributions)
and (ii) failing such election by Whitehall Street or Whitehall Employee Fund
within such sixty day (60) period, each of the other Capital Members may elect
either to fund all or some of the Failed Contribution and to proceed in the
manner described in Section 6.3 or not to fund any portion of the Failed
Contribution.  If none of the Capital
Members elect to fund any portion of the Failed Contribution pursuant to
Section 6.3, then the entire amounts funded by such other Capital Members shall
be treated as a Capital Contribution and the Non-Contributing Member will be
deemed to have a Failed Contribution equal to the total amount of Capital
Contributions funded by such other Capital Members pursuant to such Capital
Call multiplied by the Percentage Interest of such Non-Contributing Member
immediately prior to such Capital Call, the other Capital Members will be
treated as having funded such Failed Contribution proportionately (based on
their relative Percentage Interests), and the consequences described in Section
6.3 below shall apply. Alternatively, if the other Capital Members so elect
unanimously, they may treat (i) the entire amount funded by such other Capital
Members with respect to such Capital Call as a loan (a “Company Loan”)
by such other Capital Members to the Company, which Company Loan shall (i) be
senior in priority of payment to any amounts otherwise distributable to the
Capital Members hereunder and (ii) bear interest at the Default Rate.  Any payments made by the

 48
 

Company on such Company Loan shall be applied
first to interest and then to principal and shall not be deemed distributions
from the Company to the Contributing Member nor affect the Capital Accounts of
the Capital Members.  A Contributing
Member may, at any time prior to full repayment of such Company Loan, elect, in
its discretion, to terminate such Company Loan and have (x) the entire
outstanding principal and accrued and unpaid interest (as of the date of such
termination) be treated as a Capital Contribution made by such Contributing
Member on the date of such termination, (y) the Non-Contributing Member’s
Percentage Interest diluted as set forth in Section 6.4, with the portion of
the outstanding principal and accrued and unpaid interest (as of the date of
such termination) attributable to the amount funded by the Contributing Member
on behalf of the Non-Contributing Member in connection with such Capital Call
deemed to be and treated as the amount of the Funded Portion and (z) the
Capital Accounts of the Contributing Member and the Non-Contributing Member
adjusted accordingly.  At any time, the
Company may tender full payment of a Company Loan to a Contributing Member and
such Contributing Member may either accept such payment or elect to proceed
pursuant to the immediately preceding sentence.

(c)                                  If at any time after
the Effective Date the Members enter into any agreement concerning
contributions to the capital of the Company, MLPC Parent will execute such
agreement along with MLPC in order to evidence its agreement to take such
actions as are necessary to cause MLPC to comply with the terms of such
agreement.

(d)                                 To the extent MLPC
chooses to make any Additional Capital Contribution pursuant to a Discretionary
Capital Call, MLPC may, in its discretion direct the Company to apply any MLPC
Preferred Return due but not yet paid by the Company under Section 8.1 (“Unpaid
Preferred Return Amount”) as such Additional Capital Contribution.  If the Unpaid Preferred Return Amount is less
than the amount of Additional Capital Contribution to be made by MLPC, and MLPC
elects to contribute money to make up such shortfall, then MLPC shall pay the
balance of such Additional Capital Contribution that it elects to contribute as
and when required by this Section 6.2. 
If the Unpaid Preferred Return Amount is greater than the amount of
Additional Capital Contribution to be made by MLPC, then that portion of the
Unpaid Preferred Return Amount which equals the Additional Capital Contribution
amount shall be applied by the Company as such Additional Capital Contribution
and the excess of the Unpaid Preferred Return Amount over the Additional
Capital Contribution amount shall be distributed as provided in Section 8.1.  Nothing in this Section 6.2(e) is intended to
modify any other provision of this Agreement relating to a failure of MLPC to
fund an Additional Capital Contribution pursuant to a Discretionary Capital
Call.

(e)                                  To the extent any
Member, or its Affiliate, makes a payment pursuant to a guaranty entered into
between such Member, or its Affiliate, and any Lender, for breaches of an
environmental indemnity in favor of such Lender (“Environmental Guaranty
Payment”), an amount equal to the Environmental Guaranty Payment shall be
treated as a Capital Contribution hereunder and such Member’s Capital Account
shall be credited accordingly; provided, however, that if such Member, or its
Affiliate, is reimbursed by the other Members pursuant to a contribution
agreement, or other obligation to reimburse such Member, or its Affiliate (“Reimbursed
Member”), the Reimbursed Member’s Capital Account shall only be increased
for the amount of the Environmental Guaranty Payment that is not reimbursed,
and such reimbursing Members’ Capital Accounts shall be adjusted to the extent
such Member has reimbursed the Reimbursed Member.

6.3                                 Failure to Fund
Capital Contributions.  If any
Capital Member shall fail to make a capital contribution required pursuant to a
Capital Call in the amount and within the time periods specified therein (such
Capital Member herein referred to as a “Non-Contributing Member”),
the Managing Members shall give notice of such failure to all other Capital
Members and the amount of the capital contribution not funded by the Non-Contributing
Member (such amount is herein referred to as the

 49
 

“Failed Contribution”) and, within two (2) Business Days after
receiving notice of such failure, any Capital Member or Capital Members that is
or are not in default with respect to the Failed Contribution or any
contribution required to be made in connection with such Capital Call may fund
all or part of such Failed Contribution (each such funding Capital Member is
hereinafter referred to as a “Contributing Member”).  If more than one Capital Member desires to be
a Contributing Member, each such Capital Member shall have the right to fund a
portion of such Failed Contribution pro rata
in proportion to the relative Percentage Interests of such Contributing
Members. At any time after funding all or part of a Failed Contribution, the
Contributing Members may elect to treat the entire amount as one of the
following (and if there is more than one Contributing Member, each such
Contributing Member may separately make its own election);

(a)                                  A Contributing Member may at any time (even after
first electing to proceed under paragraph (b) or paragraph (c) below) elect to
treat the portion (the “Funded Portion”) of the Failed Contribution
funded by such Contributing Member as a Capital Contribution by such
Contributing Member with the dilution of the Non-Contributing Member provided
for in Section 6.4 below.

(b)                                 A Contributing Member may elect to treat the Funded
Portion as a loan (a “Member Loan”) by such Contributing Member to the
Non-Contributing Member, which Member Loan shall be treated as (i) a demand
loan made by the Contributing Member to the Non-Contributing Member (bearing
interest at the Default Rate) followed by (ii) a capital contribution by such
Non-Contributing Member to the Company. 
Any such Member Loan (to the extent of unpaid principal and interest)
shall be recourse only to the Non-Contributing Member’s Interest and shall be
repaid directly by the Company on behalf of the Non-Contributing Member (A)
from any amounts that would otherwise be distributable to the Non-Contributing
Member pursuant to Section 8.1 or Section 10.3 hereof and (B) the proceeds of
any sale of the Non Contributing Member’s Interest made pursuant to the terms
hereof, prior to such Non-Contributing Member receiving any distributions from
the Company or any such proceeds.  Any
Available Cash Flow, Available Capital Event Proceeds or proceeds of
liquidation used to repay such Member Loan shall be applied first to interest
and then to principal and shall not be deemed distributions from the Company to
the Contributing Member nor affect the Capital Account of the Contributing
Member. A Contributing Member may, at any time prior to full repayment of such
Member Loan, elect, in its discretion, to terminate such Member Loan and have
(x) the entire outstanding principal and accrued and unpaid interest (as of the
date of such termination) be treated as a Capital Contribution made by such
Contributing Member on the date of such termination, (y) the Non-Contributing
Member’s Percentage Interest diluted as set forth in Section 6.4, with the
entire outstanding principal and accrued and unpaid interest (as of the date of
such termination) deemed to be and treated as the amount of the Funded Portion
and (z) the Capital Accounts of the Contributing and Non-Contributing Members
adjusted accordingly.  At any time, a
Non-Contributing Member may tender full payment of a Member Loan to a
Contributing Member and such Contributing Member may either accept such payment
or elect to proceed pursuant to the immediately preceding sentence.  Each Member Loan shall be evidenced by a
promissory note.

(c)                                  A Contributing Member may elect to treat the entire
amount funded by such Capital Member with respect to the Capital Call relating
to the Failed Contribution (i.e.,
both the Funded Portion and the amounts attributable to the Contributing Member’s
pro rata share of such Capital Call) as a Company Loan by such Contributing
Member to the Company, which Company Loan shall (i) be senior in priority of
payment to any amounts otherwise distributable to the Members hereunder and
(ii) bear interest at the Default Rate. 
Any payments made by the Company on such Company Loan shall be applied
first to interest and then to principal and shall not be deemed distributions
from the Company to the Contributing Member nor affect the Capital Accounts of
the Capital Member.  A Contributing
Member may, at any time prior to full repayment of such Company Loan, elect, in
its discretion, to terminate such Company Loan and have (x) the entire outstanding
principal and accrued and unpaid interest (as of the date of such termination)
be treated as a Capital Contribution made by such

 50
 

Contributing Member on the date of such
termination, (y) the Non-Contributing Member’s Percentage Interest diluted as
set forth in Section 6.4, with the portion of the outstanding principal and
accrued and unpaid interest (as of the date of such termination) attributable
to the amount funded by the Contributing Member on behalf of the
Non-Contributing Member in connection with such Capital Call deemed to be and
treated as the amount of the Funded Portion and (z) the Capital Accounts of the
Contributing and Non-Contributing Member’s adjusted accordingly.  At any time, the Company may tender full
payment of a Company Loan to a Contributing Member and such Contributing Member
may either accept such payment or elect to proceed pursuant to the immediately
preceding sentence.

6.4                                 Dilution for
Failure to Fund Capital Calls.  If
one or more Contributing Members elects to treat the Funded Portion funded by
such Contributing Member as a Capital Contribution, the Percentage Interest of
each such Contributing Member shall automatically be increased effective on the
date of such election by a percentage equal to the quotient (rounded
up to the nearest one hundredth of one percent) obtained when (x) the product of the Applicable Dilution Factor multiplied by the Funded Portion funded by such Contributing
Member is divided by (y) the excess, if any, of
(i) the sum of all Members’ Capital Contributions as of such date (including
the Funded Portions) over (ii) the amount of all distributions (not in excess
of the Capital Contributions funded as of such date) made pursuant to Section
8.1(b) or Section 8.1(c), (it being agreed and understood that the number
specified in this clause (y) shall not be less than zero (0)).  The Percentage Interest of the
Non-Contributing Member shall automatically be decreased effective on the date
of such election by the aggregate amount of the increase in the Percentage
Interests of all Contributing Members as a result of the failure of the
Non-Contributing Member to fund the applicable Additional Capital
Contribution.  After determining the
adjusted Percentage Interests, each Member shall be deemed, as of any date, solely
for purposes of further calculations and adjustments of each Member’s
Percentage Interest, to have made a Capital Contribution equal to such Member’s
adjusted Percentage Interest multiplied by the total Capital Contributions made
by all Members as of such date (such deemed contribution being referred to as
the “Adjusted Contribution”).  The
Capital Account of each Member shall be adjusted accordingly and any subsequent
adjustments to Percentage Interests pursuant to this Section 6.4 shall take
into account such previous adjustments.  Schedule
6.4 attached hereto illustrates the manner in which the parties intend the
dilution formula set forth in this Section 6.4 to be calculated.

6.5                                 Capital of the
Company.  No Member shall be entitled
to withdraw or receive any interest or (except as otherwise expressly provided
herein) other return on, or return of, all or any part of its Capital
Contribution, or to receive any Company property (other than cash) in return
for its Capital Contribution.

6.6                                 Limited Liability
of Members.  Except as provided in
the Act, no Member shall be bound by, nor be personally liable for, the
expenses, liabilities, indebtedness or obligations of the Company solely by
reason of being a Member.  Except as
provided in the Act, the liability of each Member shall be limited solely to
the amount of its Capital Contribution; provided, however, that after a Member has received a distribution
from the Company, such Member may be liable to the Company for the amount of
the distribution, but only to the extent required hereby or by the Act.  Except as otherwise expressly provided by the
Act, the debts, obligations and liabilities of the Company, whether arising in
contract, tort or otherwise, shall be the debts, obligations and liabilities
solely of the Company, and no Member shall be obligated personally for any such
debt, obligation or liability of the company solely by reason of being a Member
of the Company.

6.7                                 Dilution of MLPC.  Notwithstanding anything to the contrary
herein, if MLPC’s Percentage Interest would otherwise be diluted or reduced in
accordance with Section 6.4 below ten percent (10%) as a result of MLPC’s
failure to fund an Additional Capital Contribution or a Mandatory Capital Call,
then the Contributing Members in such instance may elect to treat the Funded
Portion

 51
 

funded by such Contributing Members as a Capital Contribution only to
the extent that such treatment does not result in MLPC’s Percentage Interest
being diluted or reduced below ten percent (10%) pursuant to Section 6.4.  The amount of such Funded Portion not treated
as a Capital Contribution shall be treated by each of the Contributing Members
as a Member Loan, with the terms set forth in Section 6.3(b) and with the
addition that each of the Member Loans shall also be repaid directly by the
Company on behalf of MLPC as the Non-Contributing Member from any amounts that
would otherwise be payable to MLPC (it being agreed that no such repayment
shall be made prior to, and any such payment shall be subordinate to, (i) payment
of the $2,500,000 “[*] Payment” due under Section 3 of the MLPC Lease Tract
Purchase Agreement, (ii) payment of the $6,000,000 “Minimum Return” due under
Section 2(a) of the [*] Sale and Purchase Agreement to be entered into pursuant
to the [*] Agreement, and (iii) payment of the $2,000,000 “[*] Payment” due
under Section 2(a) of the “[*] Sale and Purchase Agreement to be entered into
pursuant to the “[*] Agreement).

ARTICLE 7

CAPITAL ACCOUNTS, PROFITS AND LOSSES AND ALLOCATIONS

7.1                                 Capital Accounts.

(a)                                  The Company shall maintain a Capital Account for each
Member in accordance with federal income tax accounting principles.  Each Member’s Capital Account as of the
Effective Date will be equal to the initial Capital Contribution made by such
Member pursuant to Section 6.1.

(b)                                 The Capital Account of each Member shall be increased
by (i) the amount of any cash and the agreed Book Value of any property (net of
liabilities encumbering such property) as of the date of contribution of any
property subsequently contributed as a Capital Contribution to the capital of
the Company by such Member, (ii) the amount of any Profits allocated to such
Member and (iii) such Member’s pro rata share
(determined in the same manner as such Member’s share of Profits pursuant to Section
7.2) of income of the Company that is exempt from tax.  The Capital Account of each Member shall be
decreased by (i) the amount of any Losses allocated to such Member, (ii) the
amount of distributions to such Member and (iii) such Member’s pro rata share (determined in the same
manner as such Member’s share of Losses pursuant to Section 7.2) of any other
expenditures of the Company that are not deductible in computing Company
Profits or Losses and which are not chargeable to capital account.  In all respects, the Members’ Capital
Accounts shall be determined in accordance with the detailed capital accounting
rules set forth in Treasury Regulations Section 1.704-1(b)(2)(iv) and shall be
adjusted upon the occurrence of certain events as provided in Treasury
Regulations Section 1.704-1(b)(2)(iv)(f).

(c)                                  A transferee of all (or a portion) of an Interest
shall succeed to the Capital Account (or portion of the Capital Account)
attributable to the transferred Interest.

7.2                                 Profits and Losses.

(a)                                  The profits and losses of the Company (“Profits”
and “Losses”) shall be the net income or net loss (including capital
gains and losses), respectively, of the Company determined for each Fiscal Year
in accordance with the accounting method followed for federal income tax
purposes except that in computing Profits and Losses, all depreciation and cost
recovery deductions shall be deemed equal to Depreciation and gains or losses
shall be determined by reference to Book Value rather than tax basis.

 52
 

(b)                                 Whenever a proportionate part of the Profits or
Losses is allocated to a Member, every item of income, gain, loss, deduction or
credit entering into the computation of such Profits or Losses or arising from
the transactions with respect to which such Profits or Losses were realized
shall be credited or charged, as the case may be, to such Member in the same
proportion; provided, however, that “recapture income,” if any,
shall be allocated to the Members who were allocated the corresponding
depreciation deductions.

(c)                                  If any Member transfers all or any part of its
Interest during any Fiscal Year, or obtains its Interest during a Fiscal Year,
or its Interest is increased or decreased, Profits and Losses attributable to
such Interest for such Fiscal Year shall be apportioned between the transferor
and transferee or computed as to such Members, as the case may be, ratably on a
daily basis, provided in all events that any such apportionment shall be
permissible under the Code and applicable regulations thereunder.

(d)                                 For all purposes, including federal, state and local
income tax purposes, Profits shall be allocated each year among all the Members
as follows:

(i)                                     First, pro rata among
all the Members in proportion to the amounts allocated and previously allocated
pursuant to Section 7.2(e)(vi) hereof until the amount allocated and
previously allocated pursuant to this Section 7.2(d)(i) equals the amount
allocated and previously allocated pursuant to Section 7.2(e)(vi) hereof;

(ii)                                  Second, among all the Members in proportion to the amounts
distributable and previously distributed pursuant to Section 8.1(b)(i) and
Section 8.1(c)(i) hereof other than as a return of capital (including amounts
that would be distributable (x) on a sale or other disposition of all or
substantially all of the Company Assets, notwithstanding that such proceeds
will be distributed pursuant to Article 10 hereof or (y) if the Company had
adequate cash to fulfill its distribution requirements under Section 8.1(b)(i)
and Section 8.1 (c)(i) hereof) until the amount allocated and previously
allocated pursuant to this Section 7.2(d)(ii) (and not reversed by Section
7.2(e)(v) hereof) equals such distributed or distributable amounts;

(iii)                               [Intentionally Omitted]

(iv)                              Fourth, among all the Members in proportion to the amounts
distributable and previously distributed pursuant to Section 8.1(b)(iii) and
Section 8.1(c)(ii) hereof (including amounts that would be distributable (x) on
a sale or other disposition of all or substantially all of the Company Assets,
notwithstanding that such proceeds will be distributed pursuant to Article 10
hereof or (y) if the Company had adequate cash to fulfill its distribution
requirements under Section 8.1(b)(iii) and Section 8.1(c)(ii) hereof) until the
amount allocated and previously allocated pursuant to this Section 7.2(d)(iv)
(and not reversed by Section 7.2(e)(iii) hereof) equals such distributed or
distributable amounts;

(v)                                 Fifth, among all the Members in proportion to the
amounts distributable and previously distributed pursuant to Section 8.1(b)(iv)
and Section 8.1(c)(iii) hereof (including amounts that would be distributable
(x) on a sale or other disposition of all or substantially all of the Company
Assets, notwithstanding that such proceeds will be distributed pursuant to
Article 10 hereof or (y) if the Company had adequate cash to fulfill its
distribution requirements under Section 8.1(b)(iv) and Section 8.1(c)(iii)
hereof).

 53
 

(e)                                  For all purposes, including federal, state and local
income tax purposes, Losses shall be allocated each year among all the Members
as follows:

(i)                                     First, pro rata among
all the Members in proportion to the amounts allocated and previously allocated
pursuant to Section 7.2(d)(vi) hereof until the amount allocated and previously
allocated pursuant to this Section 7.2(e)(i) equals the amounts allocated and
previously allocated pursuant to Section 7.2(d)(vi) hereof;

(ii)                                  Second, pro rata among
all the Members in proportion to the amounts allocated and previously allocated
pursuant to Section 7.2(d)(v) hereof until the amount allocated and previously
allocated pursuant to this Section 7.2(e)(ii) equals the amounts allocated and
previously allocated pursuant to Section 7.2(d)(v) hereof;

(iii)                               Third, pro rata among
all the Members in proportion to the amounts allocated and previously allocated
pursuant to Section 7.2(d)(iv) hereof until the amount allocated and previously
allocated pursuant to this Section 7.2(e)(iii) equals the amounts allocated and
previously allocated pursuant to Section 7.2(d)(iv) hereof;

(iv)                              Third, pro rata among
all the Members in proportion to the amounts allocated and previously allocated
pursuant to Section 7.2(d)(iii) hereof until the amount allocated and
previously allocated pursuant to this Section 7.2(e)(iv) equals the amounts
allocated and previously allocated pursuant to Section 7.2(d)(iii) hereof;

(v)                                 Fourth, pro rata among
all the Members in proportion to the amounts allocated and previously allocated
pursuant to Section 7.2(d)(ii) hereof until the amount allocated and previously
allocated pursuant to this Section 7.2(e)(v) equals the amounts allocated and
previously allocated pursuant to Section 7.2(d)(ii) hereof; and

(vi)                              Thereafter, pro
rata among all the Members in proportion to their Percentage
Interests.

(f)                                    Notwithstanding Sections 7.2(d) and (e) hereof:

(i)                                     For federal income tax purposes but not for purposes
of crediting or charging Capital Accounts, depreciation or gain or loss
realized by the Company with respect to any property that was contributed to
the Company or that was held by the Company at a time when the Book Value of
the Company Assets was adjusted pursuant to the third sentence of Section
7.1(b) shall, in accordance with Section 704(c) of the Code and Treasury
Regulation Sections 1.704-1(b)(2)(iv)(d) and (f) and 1.704-3(a)(9), be
allocated among the Members in a manner which takes into account the
differences between the adjusted basis for federal income tax purposes to the
Company of its interest in such property and the fair market value of such
interest at the time of its contribution or revaluation.

(ii)                                  If there is a net decrease in the Minimum Gain of the
Company during a taxable year (including any Minimum Gain attributable to
Member-Funded Debt), each Member at the end of such year shall be allocated,
prior to any other allocations required under this Article 7, items of gross
income for such year (and, if necessary, for subsequent years) in the amount
and proportions described in Treasury Regulation Sections 1.704-2(g) and
1.704-2(i)(4).

(iii)                               Notwithstanding the allocations provided for in
Sections 7.2(d) and (e), no allocation of an item of loss or deduction shall be
made to a Member to the extent such allocation would cause or increase a
deficit balance in such Member’s Capital Account as of the end of the taxable
year to which such allocation relates. 
If any Member receives an adjustment, allocation or distribution that
causes or increases such a deficit balance, taking into account the

 54
 

rules of Treasury Regulation Sections 1.704-1(b) (2)(ii)(d)(4), (5) and
(6), such Member shall be allocated (after taking into account any allocations
made pursuant to Section 7.2(f)(ii)) items of income and gain in an amount and
manner to eliminate the Member’s Capital Account deficit attributable to such
adjustment, allocation or distribution as quickly as possible.  For purposes of this Section 7.2(f)(iii),
there shall be excluded from a Member’s deficit Capital Account balance at the
end of a taxable year of the Company (a) such Member’s share, determined in
accordance with Section 704(b) of the Code and Treasury Regulation Section
1.704-2(g) of Minimum Gain (provided
that in the case of Minimum Gain attributable to Member-Funded Debt, such
Minimum Gain shall be allocated to the Member or Members to whom such debt is attributable
pursuant to Treasury Regulation Section 1.704-2(i)) and (b) the amount, if any,
that such Member is obligated to restore to the Company under Treasury
Regulation Section 1.704-1(b)(2)(ii)(c).

(iv)                              Notwithstanding the allocations provided for in
subsection (i) of this Section 7.2(f) and Sections 7.2(d) and (e), if there is
a net increase in Minimum Gain of the Company during a taxable year of the
Company that is attributable to Member-Funded Debt then first Depreciation, to
the extent the increase in such Minimum Gain is allocable to depreciable
property, and then a proportionate part of other deductions and expenditures
described in Section 705(a)(2)(B) of the Code, shall be allocated to the
lending or guaranteeing Member (and to joint lenders or guarantors in
proportion to their relative obligations), provided
that the total amount of deductions so allocated for any year shall not exceed
the increase in Minimum Gain attributable to such Member-Funded Debt in such
year.

(v)                                 Any special allocation under Sections 7.2(f)(ii)
through (iv) shall be taken into account in computing subsequent allocations of
Profits and Losses of any item thereof pursuant to this Article 7 so that the
net amount of any items so allocated and the Profits, Losses and all items
thereof allocated to each Member pursuant to this Article 7 shall, to the
extent permissible under Sections 704(b) and 514(c)(9) of the Code and the
Treasury Regulations promulgated thereunder, be equal to the net amount that
would have been allocated to each Member pursuant to this Article 7 if such
special allocation had not occurred.

(vi)                              In
the event MLPC receives a distribution pursuant to Section 8.1(a)(vi), income
and gain shall be specifically allocated to MLPC in the minimum amount required
to cause the cumulative amounts of items of income and gain allocated to MLPC
since the date of this Agreement pursuant to this Section 7.2(f)(vi) to equal
the cumulative amount of the distribution to MLPC pursuant to Section
8.1(a)(vi).

(vii)                           The Members intend that the allocations provided for
in this Article 7 should cause the Capital Account of each Member immediately
prior to the liquidation of the Company (after making allocations under this
Article 7 for the year of the liquidation) to be equal to the liquidating
distributions to be received by such Member pursuant to Section 10.3(3) hereof.
If any Member’s Capital Account at such time differs from the liquidating
distributions to be received by such Member pursuant to Section 10.3(3) hereof,
then notwithstanding the allocation provisions of this Article 7 but subject to
the limitations in this Section 7.2(f), the Company shall specially allocate
Profits and Losses (including, if necessary, gross items of income and
deduction) to the Members in the year of its liquidation as is necessary to
cause the Capital Account of each Member to be equal (or, if not possible, as
close to equal as possible) to the liquidating distributions to be received by
such Member pursuant to Section 10.3(3) hereof.

(g)                                 No Member shall be responsible to restore or repay to
the Company or any other Member any deficit in such Member’s Capital Account
existing at any time.

 55
 

ARTICLE 8

APPLICATIONS AND DISTRIBUTIONS OF AVAILABLE CASH

8.1                                 Applications
and Distributions.

(a)                                  Distributions of Available Cash Flow and Available
Capital Event Proceeds shall be made to the Members by Whitehall Street on
behalf of the Company in accordance with Section 8.1(b) and Section 8.1(c)
within sixty (60) days after the end of each quarter of each Fiscal Year,
subject to the terms of any indebtedness of the Company to the contrary.  Excluding the payments set forth in Sections
8.1(b)(i) and 8.1(c)(i) which such payments shall have priority over the items
listed in Sections 8.1(a)(i), (ii), (iii), (iv), (v) and (vi) (“Priority
Cash Flow Payments”), no distributions of Available Cash Flow or Available
Capital Event Proceeds will be made to any Member until all of the following
have occurred:

(i)                                     first,
accrued and unpaid interest on the Property Debt has been paid in full;

(ii)                                  second,
when the amounts described in clause (i) above are paid in full, (i) any and
all outstanding principal on the Property Debt that is due and payable has been
paid in full or (ii), if a Capital Event has occurred, the outstanding principal
balance of the Property Debt has been paid in full to the extent required by
the terms of the Property Debt;

(iii)                               third,
when the amounts described in clause (ii) above are paid in full, all other
expenses of the Company that are due and payable (whether capital or operating)
have been paid in full;

(iv)                              fourth,
when the amounts described in clause (iii) above are paid in full, any amounts
required by the Management Agreement or any loan agreement to be deposited in a
FF&E reserve have been funded;

(v)                                 fifth,
when the amounts described in clause (iv) above are paid in full all Company
Loans and all interest accrued thereon have been repaid in full; and

(vi)                              sixth,
when the amounts described in clause (v) above are paid in full, an amount
equal to the MLPC Capital Preferred Return shall be paid to MLPC quarterly,
beginning on the first Quarterly Payment Date after the Effective Date.

In the case of clause (v), if there shall be more than one Company Loan
outstanding, the Company shall pay the Capital Member with Company Loans
outstanding pro rata in
proportion to the relative principal amounts of Company Loans (including
accrued and unpaid interest) that each such Member has outstanding as a
percentage of total outstanding Company Loans made by all Members (first the
Company shall pay any accrued interest (at the Default Rate) and then shall pay
the principal amount thereof, until all such Members have received the full
amount of principal and accrued interest on such Company Loans).

 56
 

(b)                                 All Available Capital Event Proceeds shall be
distributed in the following order of priority (and the calculations described
in the following clauses shall be made as of the date of each distribution, on
a cumulative basis) after payment of the amounts specified in clauses (i)
through (v) of Section 8.1(a):

(i)                                     First, subject to Section 6.2(d), to satisfy any and
all accrued “[*] Minimum Return.

(ii)                                  Second, subject to Section 6.2(d), to satisfy any and
all accrued MLPC Preferred Returns.

(iii)                               Third, to the Capital Members, pro rata in accordance with their relative
Percentage Interests, until each such Capital Member shall have received,
taking into account the amount and timing of all prior distributions under this
Section 8.1(b)(i) and Section 8.1(c)(i), a cumulative annual preferred return
of twelve percent (12%) per annum on such unreturned Capital Member’s Capital
Contributions (but not a return of such Capital Contributions).

(iv)                              Fourth, to the Capital Members pro rata in proportion to their relative
Percentage Interests, then in effect, until each such Capital Member shall have
received  the return of one-hundred
percent (100%) of its Capital Contributions).

(v)                                 Fifth, (a) provided
that an Event of Default has not occurred, sixty percent (60%) of the remaining
Available Capital Event Proceeds to GHGP and (b) the remainder to the Capital
Members pro rata in accordance
with their relative Percentage Interests until GHGP has received distributions
made pursuant to Section 8.1(b) and 8.1(c) equal to 20% of all distributions
made to all Members pursuant to Section 8.1(b)(i), (iii), (iv) and Section
8.1(c).

(vi)                              Sixth, (a) provided
that an Event of Default has not occurred, twenty percent (20%) of the
remaining Available Capital Event Proceeds to GHGP and (b) the remainder to all
Capital Members pro rata in
accordance with their relative Percentage Interests.

To the extent MLPC
has elected pursuant to Section 6.2 to make an Additional Capital Contribution
pursuant to a Discretionary Capital Call and on or prior to the date such
Additional Capital Contribution is required to be paid to the Company there is
any accrued but unpaid distribution under clause (i) or (ii) of this Section
8.1(b), such unpaid distribution amount shall be fully credited toward
satisfaction of MLPC’s Additional Capital Contribution (up to the full amount
of Additional Capital Contribution due but not previously paid by MLPC).

(c)                                  All Available Cash Flow shall be distributed in the
following priority after payment of the amounts specified in clauses (i)
through (v) of Section 8.1(a):

(i)                                     First, subject to Section 6.2(d), to satisfy any and
all accrued “[*] Minimum Return.

(ii)                                  Second, subject to Section 6.2(d), to satisfy any and
all accrued MLPC Preferred Returns.

(iii)                               Third, to the Capital Members, pro rata in accordance with their relative
Percentage Interests, until each such Capital Member shall have received,
taking into account the amount and timing of all prior distributions under this
Section 8.1(c)(i) and Section 8.1(b)(i), a cumulative preferred return of
twelve percent (12%) on such unreturned Capital Member’s Capital Contributions
(but not a return of such Capital Contributions).

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(iv)                              Fourth, (a) provided
that an Event of Default has not occurred, sixty percent (60%) of the remaining
Available Cash Flow to GHGP and (b) the remainder to the Capital Members pro rata in accordance with their relative
Percentage Interests until GHGP has received distributions made pursuant to
Section 8.1(b) and 8.1(c) equal to 20% of all distributions made to all Members
pursuant to Section 8.1(b)(i), (iii), (iv) and Section 8.1(c).

(v)                                 Fifth, (a) provided
that an Event of Default has not occurred, twenty percent (20%) of the
remaining Available Cash Flow to GHGP and (b) the remainder to all Capital
Members pro rata in accordance
with their relative Percentage Interests.

To the extent MLPC
has elected pursuant to Section 6.2 to make an Additional Capital Contribution
pursuant to a Discretionary Capital Call and on or prior to the date such
Additional Capital Contribution is required to be paid to the Company there is
any accrued but unpaid distribution under clause (i) or (ii) of this Section
8.1(c), such unpaid distribution amount shall be fully credited toward
satisfaction of MLPC’s Additional Capital Contribution (up to the full amount
of Additional Capital Contribution due but not previously paid by MLPC).

(d)                                 Notwithstanding the terms of Section 8.1(b) or
Section 8.1(c) and subject to Section 4.8, if an Event of Default shall have
occurred and is continuing, then, at the election of a Whitehall Street or
Whitehall Employee Fund, the amount of Gengate Actual Promote that would
otherwise be distributable to the Defaulting Member shall not be distributed to
such Defaulting Member but shall be distributed instead to the Members in
proportion to their Percentage Interests, and appropriate adjustments shall be
made in the allocations to be made pursuant to Article 7; provided, however,
that both Whitehall Street and Whitehall Employee Fund shall have the right, in
their discretion, to provide for the payment to one or more successor managers
or consultants of the Company all or a portion of Company Assets (regardless
whether such manager or consultant is a Member and regardless whether such
manager or consultant is an Affiliate of a member of the Whitehall Group) or
all or a portion of the amounts that would otherwise be distributed to the
Gengate Member as its allocable portion of the Gengate Actual Promote had it
not been subject to an Event of Default and to the extent permissible under
Section 704(b) of the Code and the Treasury Regulations promulgated thereunder,
appropriate adjustments shall be made in the allocations to be made pursuant to
Article 7.

8.2                                 Restoration
of Excess Distributions.

(a)                                  If any Gengate Actual Promote payments have
previously been made and, subsequently, the cumulative Internal Rate of Return
for the Capital Members has been reduced as a result of a Capital Contribution
being made pursuant to Section 6.2 or otherwise, then the parties hereto
shall make appropriate adjustments to the amounts previously distributed or
paid to them (and GHGP shall return all or a portion of the Gengate Actual
Promote payments to the Company) to the extent necessary so that the balance of
the Gengate Actual Promote payments retained by GHGP (after giving effect to
such adjustments) does not exceed the amount GHGP should have received pursuant
to Section 8.1(b)(v)(a) and (vi)(a) and 8.1(c)(iv)(a) and (v)(a)
if such additional contributions had been taken into account at the time of the
previous calculations(s) of the amounts payable to GHGP pursuant to such
Sections.  For the avoidance of doubt,
the clawback in this Section 8.2(a) is intended to limit GHGP to a total
amount of Gengate Actual Promote Payments equal to what GHGP would have been
entitled to on a “look back” basis taking into account the amount and timing of
each contribution and distribution.

(b)                                 Notwithstanding anything to the contrary set forth
herein, if any Gengate Actual Promote payments have previously been made and
upon the (i) the direct or indirect sale of the Property, (ii) the sale of the
Whitehall Group’s entire Interest in the Company or GKH’s entire  Interest in the Company or (iii) the sale or
liquidation of the Company or the Company Assets, the Whitehall Group has not
received a cumulative Internal Rate of Return of at least  twelve percent (12%),  GHGP shall return all or a portion of the
Gengate Actual Promote payments to the Whitehall Group to the extent necessary
to

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provide the Whitehall Group with a cumulative Internal Rate of Return
of twelve percent (12%) taking into account (x) the timing and amount of all
Capital Contributions made by, and all the distributions of Available Cash Flow
and Available Capital Event Proceeds received, by the Members and (y) the
Gengate Actual Promote payments previously received by GHGP and not yet
returned to GHGP pursuant to this Section 8.2.

(c)                                  If distribution adjustments are made pursuant to this
Section 8.2, then, to the extent permissible under Sections 704(b) and
514(c)(9) of the Code and the Treasury Regulations promulgated thereunder,
appropriate adjustments shall be made in the allocations to be made pursuant to
Article 7.  Gengate Guarantor has
executed this agreement for the purpose of guaranteeing the full payment and
performance of any Gengate Member under this Section 8.2.

8.3                                 Repayment of Member
Loans.  If any Member shall be a
borrower under one or more Member Loans (a “Debtor Member”), then any
distributions that would otherwise be payable to such Debtor Member pursuant to
Section 8.1 or Section 10.3 shall instead be paid to the Capital
Member or Capital Members that made such Member Loans (each, a “Lender
Member”) first to pay any accrued interest at the Default Rate and then to
pay the principal amount thereof, until such Member Loans (including any
accrued and unpaid interest) shall be repaid in full.  In the event there are two or more Lender
Members with respect to any Debtor Member, distributions under this Section
8.3 or Section 10.3 shall be made pro rata to
each Lender Member in proportion to the relative principal amount of Member
Loans (including accrued and unpaid interest) that such Lender Member has
outstanding as a percentage of total outstanding Member Loans made to such Debtor
Member by all Lender Members.  Any
amounts distributed pursuant to this Section 8.3 shall for all other
purposes of this Agreement be treated as if distributed to the Debtor Member.

8.4                                 Liquidation.  Subject to Article 10 hereof, in the
event of the sale or other disposition of all or substantially all of the
Company Assets, the Company shall be dissolved and the proceeds of such sale or
other disposition shall be distributed in liquidation as provided in Section
10.3(b), except that to the extent that the Company receives a purchase
money note or notes in exchange for all or a portion of such assets, the
Company shall continue in existence until such purchase money notes or notes
have been paid in full.

8.5                                 Limitations on
Distributions.  Notwithstanding any
provision to the contrary contained in this Agreement, the Company shall not be
required to make a distribution to a Member on account of its interest in the
Company if such distribution would violate Section 18-607 of the Act or
any other applicable law.

8.6                                 Withholding Taxes.  The Company shall be entitled to (i) withhold
any taxes that are required to be withheld from distributions made by the
Company to any Member and (ii) pay any taxes that it is required to pay with
respect to a Member’s allocable share of the taxable income realized by the
Company (including, but not limited to, any estimated taxes that the Company is
obligated to pay with respect to a Member’s share of the estimated or actual
income of the Company).  All amounts
withheld or paid by the Company pursuant to the preceding sentence (the “Deemed
Distribution”) shall, for purposes of this Agreement, be deemed to have
been distributed to the Member in respect of which the tax was withheld or
paid.  If, in any Fiscal Year, the Deemed
Distributions and actual distributions made by the Company to a Member in such
Fiscal Year exceeds the amount that the Company is required to distribute to
such Member under Section 8.1 hereof in such Fiscal Year, then such
Member shall be required to contribute such excess to the Company within 30
days of the close of the Fiscal Year and the allocations to be made under
Article 7 hereof for such Fiscal Year shall be made as if such excess amount
had not been distributed to such Member.

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8.7                                 Reimbursement.  Notwithstanding the foregoing, if (i) any Capital Member
shall from time to time make a payment or incur any cost or expense pursuant to
or on account of any Loan Guaranty and (ii) a Capital Member makes a Capital
Call pursuant to Section 6.2 regarding such guaranty, then upon
receiving the corresponding capital contribution, the Company shall reimburse
the Member or Members for any amounts that are funded pursuant to or as a
result of such guaranty.

ARTICLE 9

TRANSFER OF COMPANY INTERESTS

9.1                                 Transfers of Interests
by Members.

(a)                                  Each Member in the Whitehall Group shall have the
right to sell, convey or transfer (i) all or any portion of its Interest to
GKH, GHGP or Permitted Gengate Transferees or to MLPC, (ii) all or any portion
of its Interest to any Affiliate of any Member in the Whitehall Group without
restriction, except as set forth in Sections 9.2, 9.4 and 9.5 (at the time of
such Transfer, the term “Whitehall Group” shall include each such assignee) and
(iii) all but not a portion of its Interest to any Person other than those
listed in clause (i) and clause (ii) above subject, in the case of clause (iii)
only, to the right of GKH to reasonably approve the identity of the
assignee.  At all times except if a transfer
pursuant to clause (i) or (iii) of the immediately preceding sentence has
occurred, Whitehall Street, Whitehall Employee Fund or Persons controlled by
Whitehall Street or Whitehall Employee Fund (or any successor to all or a
substantial portion of the business conducted by Whitehall Street or Whitehall
Employee Fund as of the Effective Date) shall, after such Transfer, at all
times have control over the business and affairs of the Whitehall Group.

(b)                                 The direct or indirect owners of the Gengate Members
shall have only the right to Transfer direct or indirect ownership interests in
a Gengate Member only to Permitted Gengate Transferees.

(c)                                  MLPC shall only have the right to Transfer ownership
interests in the Company to a Permitted MLPC Transferee.

(d)                                 Except as provided in Sections 3.2(d)(3), 3.6(h),
4.9(a), 9.1(a), 9.1(b), 9.1(c), 9.6, and 9.7, no Member shall engage in or
permit a Transfer without the prior consent of all other Members and in strict
compliance with the provisions of this Article 9.  Any purported Transfer in violation of this
Article 9 shall, to the fullest extent permitted by law, be void and shall not
bind the Company, and the Member making such purported Transfer shall, to the
fullest extent permitted by law, indemnify and hold the Company and the other
Members harmless from and against any federal, state or local income taxes, or
transfer taxes, including transfer gains taxes, arising as a result of, or
caused directly or indirectly by, such purported Transfer.

(e)                                  The giving of any consent to a Transfer in any one or
more instances shall not limit or waive the need for such consent in any other
or subsequent instance.

(f)                                    In the event that any party elects to Transfer its
Interest in the Company, such party shall bear 100% of the transfer taxes
payable in connection with such sale.

9.2                                 Assignment Binding
on Company.  No Transfer of all or
any part of the Interest of a Member permitted to be made under this Agreement
shall be binding upon the Company unless and until a duplicate original of such
instrument of Transfer, duly executed and acknowledged by the assignor or
transferor, has been delivered to the Company, and such instrument evidences
(i) the written acceptance

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by the Transferee of all of the terms and provisions of this Agreement,
(ii) the Transferee’s representation that such Transfer was made in accordance
with all applicable laws and regulations and (iii) the consent to the Transfer
of the Interest required pursuant to Section 9.1(c), if any.  In addition, a Person to whom a Transfer may
be made pursuant to this Article 9, other than pursuant to Section 9.1(a), may
also be required, in the reasonable discretion of a Managing Member, and as a
condition precedent to its becoming a Transferee to make certain
representations, warranties and covenants to evidence compliance with U.S.
federal and state securities laws including, but not limited to,
representations as to its net worth, sophistication and investment intent.

9.3                                 Substituted Members.

(a)                                  Members who Transfer all of their Interests pursuant
to an assignment or assignments permitted under this Agreement shall cease to
be Members of the Company except that unless and until a Substituted Member is
admitted in its stead, the assigning Member shall not cease to be a Member of
the Company under the Act and shall retain the rights and powers of a Member
under the Act and hereunder, provided that
such assigning Member may, prior to the admission of a Substituted Member,
assign its economic interest in its Interest, to the extent otherwise permitted
under Article 9.  Any Person who is an
assignee of any portion of the Interest of a Member and who has satisfied the
requirements of Article 9 shall become a Substituted Member only when (i) GHGP
(or, if GHGP has been divested of its Administrative Rights pursuant to Section
4.9(b), a designee of the Whitehall Group) has entered such assignee as a
Member on the books and records of the Company, which GHGP is hereby directed
to do upon satisfaction of such requirements, and (ii) such assignee shall have
paid all reasonable legal fees and filing costs in connection with the
substitution as a Member.  For the
avoidance of doubt, if a Permitted Gengate Transferee at any time ceases to be
a Permitted Gengate Transferee for any reason and had been previously admitted
to the Company as a Substituted Member, such transferee shall automatically and
immediately cease to be a Member and, instead, shall be deemed an assignee of
only the economic interest of the transferor.

(b)                                 Any Person who is an assignee of all or any portion
of the Interest of a Member but who does not become a Substituted Member and
desires to make a further assignment of any such Interest, shall be subject to
all the provisions of this Article 9 to the same extent and in the same manner
as any Member desiring to make an assignment of its Interest.

9.4                                 Acceptance of Prior
Acts.  Any person who becomes a
Member, by becoming a Member, accepts, ratifies and agrees to be bound by all
actions duly taken pursuant to the terms and provisions of this Agreement by
the Company prior to the date it became a Member and, without limiting the
generality of the foregoing, specifically ratifies and approves all agreements
and other instruments as may have been executed and delivered on behalf of the
Company prior to said date and which are in force and effect on said date.

9.5                                 Additional
Limitations.  Notwithstanding
anything contained in this Agreement, no Transfer shall be made, and any Member
shall have the right to prohibit and may refuse to accept any Transfer, unless
(i) registration is not required under the Securities Act of 1933, as amended,
in respect of such Transfer; (ii) such Transfer does not violate any applicable
federal or state securities, real estate syndication, or comparable laws; (iii)
such Transfer will not be subject to, or such Transfer, when aggregated with
prior Transfers in accordance with applicable law will not result in the
imposition of, any state, city or local transfer taxes, including, without
limitation, any transfer gains taxes, unless such assignor pays such taxes; and
(iv) such Transfer will not cause the Company to be treated as a “publicly-traded
partnership” within the meaning of Section 7704 of the Code.  Whitehall Street or Whitehall Employee Fund
may elect prior to any Transfer to require a reasonable opinion of counsel with
respect to any of the foregoing matters.

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9.6                                 Bring-Along Rights.  In the event that Whitehall Group and/or its
permitted transferees (the “Proposing Members”) propose to Transfer
their Interests to any Persons, other than an Affiliate of a member of the
Whitehall Group or a Person described in Section 9.1(a)(i), the Proposing
Members may upon not less than fifteen (15) Business Days’ prior notice require
a Gengate Member and/or Permitted Gengate Transferees and MLPC to Transfer
their Interests at the price and upon the terms and conditions of such proposed
Transfer.  Each Member shall use its best
efforts to cooperate with any Transfer pursuant to this Section and shall take
all necessary and desirable actions in connection with the consummation of the
Transfer as are reasonably requested by the Proposing Members, including the
provision of representations, warranties or indemnifications; provided that no Member shall be required
to incur any out-of-pocket expenses in connection with such Transfer that are
not reimbursed to such Member; and provided
further that no such Member shall be required to provide
representations, warranties or indemnifications in connection with any such
Transfer that would result in an aggregate liability in excess of such Member’s
proceeds from such Transfer. The aggregate proceeds received from the Transfer
of interests pursuant to this Section 9.6 shall be allocated and distributed to
the selling Members in accordance with the distribution allocation provisions
of Article 8.

9.7                                 Tag-Along Rights.  If the Proposing Member does not exercise its
Bring-Along Rights pursuant to Section 9.6, it shall nonetheless give each
other Member and each Permitted Gengate Transferee not less than fifteen (15)
Business Days’ prior notice of its proposed Transfer (including the price and
other material terms thereof) and shall not Transfer its Interests to any
Person, other than such Proposing Member’s Affiliates, the Whitehall Group or
the Whitehall Group’s Affiliates or a Person described in Section 9.1(a)(i),
unless each other Member is given the opportunity, to be exercised in a writing
to the Proposing Member within fifteen (15) Business Days after receipt of the
Proposing Member’s notice, to Transfer its Interests at the price and upon the
same terms and conditions of such proposed Transfer.  The aggregate proceeds received from the
Transfer of the Member’s Interests pursuant to this Section 9.7 shall be
allocated among and distributed to the selling Members in accordance with the
distribution allocation provisions of Article 8.

ARTICLE 10

DISSOLUTION; WINDING UP AND DISTRIBUTION OF ASSETS

10.1                           Dissolution.

(a)                                  The Company shall be dissolved and its affairs shall
be wound up only upon the first to occur of the following (a “Dissolution
Event”):

(1)                                  the
entry of a decree of judicial dissolution under Section 18-802 of the Act;

(2)                                  the
termination of the legal existence of the last remaining Member or the
occurrence of any other event which terminates the continued membership of the
last remaining Member in the Company unless the business of the Company is
continued in a manner permitted by this Agreement or the Act. Upon the
occurrence of any event that causes the last remaining Member to cease to be a
Member of the Company, to the fullest extent permitted by law, the personal
representative of such member is hereby authorized and directed to, and shall,
within ninety (90) days after the occurrence of the event that terminated the
continued membership of such Member in the Company, agree in writing (i) to
continue the Company and (ii) to the admission of the personal representative
or its nominee or designee, as the case may be, as a Substitute Member of the
Company, effective as of the occurrence of the event that terminated the
continued membership of the last remaining Member in the Company;

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(3)                                  the
sale or other disposition of all of the Company Assets and receipt of the final
payment of any installment obligation received as a result of any such sale or
disposition;

(4)                                  a
dissolution of the Company pursuant to Section 8.3; or

(5)                                  the
written direction of the Managing Members.

(6)                                  No
Member shall have the right to (i) withdraw or resign as a Member of the
Company, (ii) redeem, or otherwise require redemption of, its Interest or any
part thereof or (iii) to the fullest extent permitted by law, dissolve itself
voluntarily.

(b)                                 Notwithstanding any other provision of this Agreement,
the Bankruptcy of any of the Members shall not cause said Member to cease to be
a Member of the Company and upon the occurrence of such an event, the business
of the Company shall continue without dissolution.  To the fullest extent permitted by law, the
Company shall not be dissolved or terminated solely by reason of the
Bankruptcy, removal, withdrawal, dissolution or admission of any Member.

10.2                           Winding Up.

(a)                                  In the event of the dissolution of the Company
pursuant to Section 10.1, any of Whitehall Street or Whitehall Employee Fund
may wind up the Company’s affairs.

(b)                                 Upon dissolution of the Company and until the filing
of a certificate of cancellation as provided in the Act, the Managing Members
or a liquidating trustee, as the case may be, may, in the name of, and for and
on behalf of, the Company, prosecute and defend suits, whether civil, criminal
or administrative, gradually settle and close the Company’s business, dispose
of and convey the Company’s property, discharge or make reasonable provision
for the Company’s liabilities, and distribute to the Members in accordance with
Section 10.3 any remaining assets of the Company, all without affecting the
liability of Members, including the Member participating in the winding up of
the Company’s affairs, and without imposing liability on any liquidating
trustee.

(c)                                  Upon the completion of winding up of the Company, the
Managing Members or a liquidating trustee, as the case may be, shall file a
certificate of cancellation of the Certificate in the Office of the Delaware
Secretary of State as provided in the Act. 
The existence of the Company as a separate legal entity shall continue
until cancellation of the Certificate as provided in the Act.

10.3                           Distribution of Assets.  Upon the winding up of the Company, the
assets shall be distributed as follows:

(1)                                  to
the satisfaction of debts and liabilities of the Company owed to creditors
(whether by payment or the making of reasonable provision for payment thereof),
in order of priority as provided by law, other than debts and liabilities owed
to Members, including to the payment of expenses of the liquidation and to the
setting up of any reserves that the Managing Members or the liquidating
trustee, as the case may be, shall determine are reasonably necessary for any
contingent, conditional or unmatured liabilities or obligations of the Company;

(2)                                  to
the satisfaction of debts and liabilities of the Company owed to Members; and

 63
 

(3)                                  to
the Capital Members in accordance with their respective Capital Account
balances after allocation of Profits and Losses for the period ending
immediately prior to such distribution.

Notwithstanding
the foregoing, and subject to Section 18-804 of the Act, distributions to a
Member pursuant to this Section 10.3(3) shall only be made after payment in
full of any Member Loans owed to the Lender Members out of such distributions
and such payments shall be deemed a distribution to the Debtor Members followed
by the payment provided for in this sentence.

10.4                           Deemed Contribution and
Distribution.  In the event the
Company is liquidated within the meaning of Treasury Regulations section
1.704-1(b)(2)(ii)(g) but no dissolution of the Company pursuant to Section 10.1
hereof has occurred, the assets of the Company shall not be liquidated, the
Company’s liabilities shall not be paid or discharged, and the Company’s
affairs shall not be wound up. Instead, solely for United States federal income
tax purposes, the Company shall be deemed to have contributed all of its assets
and liabilities to a new partnership in exchange for an interest in such new
partnership and, immediately thereafter, the Company will be deemed to
liquidate by distributing interests in the new partnership to the Members.

ARTICLE 11

AMENDMENTS

11.1                           Amendments.  This Agreement, other than Articles 6 and 7
and Sections 8.1, 8.2, 9.1, and 11.1 may be amended from time to time by the
unanimous consent of the Managing Members, provided, however, that any
amendment to Articles 6 and 7 and Sections 8.1, 8.2, 9.1 and 11.1 shall not,
without the consent of each Member, reduce the amounts distributable to any
Member (in a manner that is not pro rata with
respect to all Members), increase the obligations or liabilities of any Member
hereunder, or otherwise materially impair the rights of any Member under this
Agreement.  No amendment, modification,
supplement, discharge or waiver hereof or hereunder shall require the consent
of any Person not a party to this Agreement. 
Except as otherwise provided in this Section 11.1, this Agreement may
not be amended or supplemented , and no provisions hereof may be modified or
waived, except by an instrument in writing signed by each of the Members.  Notwithstanding the foregoing, no consent of
any Member other than the Managing Members shall be required for an amendment
or restatements entered into to reflect any Transfer made pursuant to Section
9.1(a).

11.2                           Additional Members.  If this Agreement shall be amended as a
result of adding or substituting a Member, the amendment to this Agreement shall
be signed (i) by the Whitehall Group, (ii) unless and until there is an Event
of Default, by GKH other than in connection with a Transfer made pursuant to Section
9.1(a), (iii) unless and until there is an MLPC Event of Default, by MLPC
other than in connection with a Transfer made pursuant to Section 9.1(a), (iv)
by the Person to be added or substituted and (v) by the assigning Member, if
any.  In making any amendments, GHGP
shall prepare and file for recordation such documents and certificates as shall
be required to be prepared and filed.

ARTICLE 12

MISCELLANEOUS

12.1                           Further Assurances.  Each party to this Agreement agrees to
execute, acknowledge, deliver, file and record such further certificates,
amendments, instruments and documents, and to do all such other acts and
things, as may be required by law or as, in the reasonable judgment of the
Manager Members, may be necessary or advisable to carry out the intent and
purpose of this Agreement.

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12.2                           Notices.  Unless otherwise specified in this Agreement,
all notices, demands, elections, requests or other communications that any
party to this Agreement may desire or be required to give hereunder shall be in
writing and shall be given by depositing the same in the United States mail,
first-class postage prepaid, certified mail, return receipt requested, or by a
recognized overnight courier service providing confirmation of delivery, or by
facsimile transmission (with confirmation of receipt) to the addresses set
forth in Sections 2.6 and 2.7, as applicable, or at such other
address as may be designated by the addressee thereof (which in the case of the
Company, shall be designated by the Managing Members) upon written notice to
all of the Members.  All notices given pursuant
to this Section 12.2 shall be deemed to have been given on the date of
delivery as established by the return receipt, courier service conformation (or
the date on which the return receipt, or courier service confirms that
acceptance of delivery was refused by the addressee), or facsimile confirmation
received by the sender.  Copies of all
notices shall also be delivered to the following:

If a notice is delivered to any of the Managing Members,
then a copy shall also be delivered to:

Sullivan & Cromwell LLP

125 Broad Street

New York, New York  10004

Attention:  Anthony J. Colletta, Esq.

Facsimile:  (212) 558-3588

Maui Land & Pineapple Company, Inc.

120 Kane Street

Kahului, Hawaii  96733-6687

Attention:  Mr. Robert Webber

If a notice is delivered to a Gengate Member, then a
copy shall also be delivered to:

Gardere
Wynne Sewell LLP

3000 Thanksgiving Tower

Dallas, Texas  75201

Attention:  Clifford J. Risman

Facsimile:  214-999-3287

12.3                           Headings and Captions.  All headings and captions contained in this
Agreement and the table of contents hereto are inserted for convenience only
and shall not be deemed a part of this Agreement.

12.4                           Variance of Pronouns.  All pronouns and all variations thereof shall
be deemed to refer to the masculine, feminine or neuter, singular or plural, as
the identity of the person or entity may require.

12.5                           Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall constitute an original and all of which, when
taken together, shall constitute one Agreement. 
Furthermore, this Agreement may be executed by telecopier or other
facsimile signature and any such signature shall be deemed an original for all
purposes.

12.6                           Governing Law.  THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE,
WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.

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12.7                           Consent to Jurisdiction.  To the fullest extent permitted by law, each
party hereto hereby irrevocably consents and agrees, for the benefit of each
party, that any legal action, suit or proceeding against it with respect to its
obligations, liabilities or any other matter under or arising out of or in
connection with this Agreement and with respect to the enforcement,
modification, vacation or correction of an award rendered in an arbitration
proceeding may be brought in any state or federal court located in the Borough
of Manhattan, The City of New York (a “New York Court”), and hereby
irrevocably accepts and submits to the non-exclusive jurisdiction of each such
New York Court, with respect to any such action, suit or proceeding.  Each party hereto also hereby irrevocably
consents and agrees, for the benefit of each other party, that any legal
action, suit or proceeding against it may also be brought in any state or
federal court located in the State of Delaware (a “Delaware Court”), and
hereby irrevocably accepts and submits to the non-exclusive jurisdiction of
each such Delaware Court with respect to any such action, suit or
proceeding.  To the fullest extent
permitted by law, each party hereto waives any objection which it may now or
hereafter have to the laying of venue of any of the aforesaid actions, suits or
proceedings brought in any such New York Court or Delaware Court and hereby
further waives and agrees not to plead or claim in any such New York Court or
Delaware Court that any such action, suit or proceeding brought therein has
been brought in an inconvenient forum; provided, that
nothing in this Section 12.7 shall be construed to waive any objection
that any legal proceedings should be stayed or dismissed in favor of
arbitration as provided by Section 12.8. 
Each party agrees that (i) to the fullest extent permitted by law,
service of process may be effectuated hereinafter by mailing a copy of the
summons and complaint or other pleading by certified mail, return receipt
requested, at its address set forth above and (ii) all notices that are
required to be given hereunder may be given by the attorneys for the respective
parties.

12.8                           Arbitration.

(a)                                  Arbitration shall be
the exclusive method for resolution of any claims or disputes arising in
connection with this Agreement, and the determination of the arbitrators shall
be final and binding (except to the extent there exist grounds for vacating an
award under applicable arbitration statutes and/or decisional precedents) on
the Members.  The parties agree that
judgment on the determination and award of such arbitrators may be entered in
any court having jurisdiction.  Each
party shall bear its own costs in any arbitration.

(b)                                 The number of arbitrators shall be three, each of
whom shall be disinterested in the dispute or controversy and shall be
impartial with respect to all parties hereto. 
If the claim or dispute arising in connection with this Agreement is
between two parties only, each disputing party shall appoint one arbitrator
within ten (10) business days of notice from a party that arbitration is
requested and the third arbitrator shall be appointed by the two initial
arbitrators within ten (10) business days of appointment of the two initial
arbitrators.  If the claim or dispute
arising in connection with this Agreement is between more than two parties, the
American Arbitration Association shall appoint the three arbitrators within ten
(10) business days of notice from a party that arbitration is requested.  For purposes of this Section 12.8(b),
in determining whether a claim or dispute is a “two-party” or a “more than
two-party” dispute, all of the members of the Whitehall Group shall
collectively be deemed to be one party.

(c)                                  The place of arbitration shall be the Borough of
Manhattan, The City of New York.  The
arbitration shall be conducted in the English language.  To the extent that an issue is not expressly addressed
in this Agreement, the arbitrators shall resolve such dispute or controversy in
accordance with good commercial practice. 
The arbitrators shall decide such dispute in accordance with the law of
the State of New York.  The arbitrators
shall decide such dispute within forty-five (45) days of selection of the third
arbitrator.  They shall apply the
commercial arbitration rules of the American Arbitration Association.

 66
 

12.9                           Partition.  The Members hereby agree that no Member nor
any successor-in-interest to any Member shall have the right to have the
property of the Company partitioned, or to file a complaint or institute any
proceeding at law or in equity to have the property of the Company partitioned,
and each Member, on behalf of itself, its successors, representatives, heirs
and assigns, hereby waives any such right.

12.10                     Invalidity.  Every provision of this Agreement is intended
to be severable.  The invalidity and
unenforceability of any particular provision of this Agreement in any
jurisdiction shall not affect the other provisions hereof, and this Agreement
shall be construed in all respects as if such invalid or unenforceable
provision were omitted.

12.11                     Successors and Assigns.  This Agreement shall be binding upon the
parties hereto and their respective successors, executors, administrators,
legal representatives, heirs, legal assigns and assigns permitted hereunder and
shall inure to the benefit of the parties hereto and, except as otherwise
provided herein, their respective successors, executors, administrators, legal
representatives, heirs, legal assigns and assigns permitted hereunder.  No Person other than the parties hereto and
their respective successors, executors, administrators, legal representatives,
heirs, legal assigns and permitted assigns shall have any rights or claims
under this Agreement.

12.12                     Entire Agreement.  This Agreement, together with all Schedules
and Exhibits attached hereto (which are incorporated herein by this reference),
supersedes all prior agreements among the parties with respect to the subject
matter hereof and contains the entire Agreement among the parties with respect
to such subject matter.

12.13                     Waivers.  No waiver of any provision hereof by any
party hereto shall be deemed a waiver by any other party nor shall any such
waiver by any party be deemed a continuing waiver of any matter by such party.

12.14                     Maintenance
as a Separate Entity.  The Company
shall maintain books and records and bank accounts separate from those of its
Affiliates; shall at all times hold itself out to the public as a legal entity
separate and distinct from any of its Affiliates (including in its operating
activities, in entering into any contract, in preparing its financial
statements, and on its stationery and any signs it posts), and shall cause its
Affiliates to do the same and to conduct business with it on an arm’s-length
basis; shall not commingle its assets with assets of any of its Affiliates;
shall not guarantee any obligation of any of its Affiliates; and shall keep
minutes of all meetings of the Members. 
Failure of the Company, or any Member on behalf of the Company, to
comply with any of the foregoing covenants shall not affect the status of the
Company as a separate legal entity or the limited liability of a Member.

12.15                     Confidentiality.

(a)                                  The Members agree not
to disclose or permit the disclosure of any of the terms of this Agreement or
of any other confidential, non-public or proprietary information relating to
the Property or the business of the Company (collectively, “Confidential
Information”), provided that
such disclosure may be made (i) to any Person who is a partner, officer,
director or employee of such Member or counsel to or accountants of such Member
solely for their use and on a need-to-know basis, provided that such Persons are notified of the Members’
confidentiality obligations hereunder, (ii) with the prior consent of the
Managing Members, (iii) subject to the next paragraph, pursuant to a subpoena
or order issued by a court, arbitrator or governmental body, agency or
official, or (iv) to any lender providing financing to the Company.

 67
 

(b)                                 In the event that a Member shall receive a request to
disclose any Confidential Information under a subpoena or order, such Member
shall (i) promptly notify the Whitehall Group and GKH thereof, (ii) consult
with and notify the Whitehall Group and GKH on the advisability of taking steps
to resist or narrow such request and (iii) if disclosure is required or deemed
advisable, cooperate with notify the Whitehall Group and GKH in any attempt it
may make to obtain an order or other assurance that confidential treatment will
be accorded the Confidential Information that is disclosed.

(c)                                  No Member shall issue or publish any press release,
tombstone or other public communication about the formation or existence of the
Company without the express written consent of 
the Managing Members. 
Notwithstanding the foregoing, GHGP and GKH shall have the right to
issue ordinary course public communications from time to time in connection
with the marketing or promotion of the Property, provided that the names of the members of the Whitehall
Group, The Goldman Sachs Group, Inc., Goldman, Sachs & Co., Goldman Sachs
or any derivation of any of the foregoing shall not appear in any such public
communication.

(d)                                 The provisions of this Section 12.15 were
negotiated in good faith by the parties hereto, and the parties hereto agree
that such provisions are reasonable and are not more restrictive than necessary
to protect the legitimate interests of the parties hereto.  It is the intention of the parties hereto
that if any restriction or covenant contained herein is held to be for a length
of time that is not permitted by applicable law,  or is any way construed to be too broad or to
any extent invalid, such provision shall not be construed to be null, void and
of no effect, but to the extent such provision would be valid or enforceable
under applicable law, a court of competent jurisdiction shall, to the fullest
extent permitted by law, construe and interpret or reform such provision to
provide for a restriction or covenant having the maximum time period and other
provisions (not greater than those contained herein) as shall be valid and
enforceable under applicable law.

(e)                                  Each of the parties to the proposed transactions
described herein (and each employee, representative or other agent thereof) may
disclose to any and all persons, without limitation of any kind, the tax
treatment and tax structure of the transactions described herein and all
materials of any kind (including opinions or other tax analyses) that are
provided to such party relating to such tax treatment and tax structure.  However, any information relating to the tax
treatment or tax structure shall remain subject to the confidentiality
provisions hereof (and the foregoing sentence shall not apply) to the extent
reasonably necessary to enable the parties, their respective affiliates, and
their respective affiliates’ directors and employees to comply with applicable
securities laws.  For this purpose, “tax
structure” means any facts relevant to the federal income tax treatment of the
proposed transaction but does not include the identity of the parties or their
respective affiliates

12.16                     No Third
Party Beneficiaries.  Other than as
set forth in Section 4.4(b), this Agreement is not intended and shall not be
construed as granting any rights, benefits or privileges to any Person not a
party to this Agreement.  Without
limiting the generality of the foregoing, no creditor of the Company or of any
Member shall have any right whatsoever to require any Member to contribute
capital to the Company.

12.17                     Power of
Attorney.

(a)                                  Each of the
undersigned does hereby irrevocably constitute and appoint each of Whitehall
Street and Whitehall Employee Fund and, for so long as it retains
Administrative Rights, GHGP, with full power of substitution, as its true and
lawful attorney, in its name, place and stead, to execute, acknowledge, swear
to, deliver, record and file, as appropriate and in accordance with this
Agreement (i) all amendments to the original Certificate required or permitted
by law or the provisions of this Agreement, (ii) all certificates and other
instruments requiring execution by the Members or any of

 68
 

them and deemed necessary or advisable by Whitehall Street and
Whitehall Employee Fund or GHGP to qualify or continue the Company as a Company
wherein the members have limited liability in the jurisdictions where the
Company may be conducting its operations, (iii) all instruments requiring
execution by the Members or any of them and that Whitehall Street and Whitehall
Employee Fund or GHGP deems appropriate to reflect a change or modification of
this Agreement or the Company in accordance with this Agreement, including,
without limitation, the substitution of assignees as Substituted Members
pursuant to Section 9.3 (provided,
however, that, any such
modification is otherwise in accordance with this Agreement), and (iv) all
conveyances and other instruments deemed necessary or advisable by the Managing
Members to effect the dissolution and termination of the Company in accordance
with this Agreement.  In addition, each
of the undersigned does hereby irrevocably constitute and appoint Whitehall
Street and Whitehall Employee Fund with full power of substitution, as its true
and lawful attorney, in its name, place and stead, to execute, acknowledge,
swear to, deliver, record and file any document, contract, certificate,
agreement, guaranty, indemnity or instrument necessary, in Whitehall Street’s
and Whitehall Employee Fund’s judgment, to implement, facilitate or effectuate
any Major Decision.  Nothing contained in
this Section 12.17 shall empower GHGP to take any action requiring the
consent of any of the Managing Members hereunder unless such consent is first
obtained.

(b)                                 The powers of attorney granted pursuant to this Section
12.17 are coupled with an interest and shall be irrevocable and survive and
not be affected by the subsequent death, incapacity, disability, Bankruptcy or
dissolution of the grantor; may be exercised by Whitehall Street, Whitehall
Employee Fund or GHGP either by signing separately as attorney-in-fact for each
Member or Whitehall Street, Whitehall Employee Fund or GHGP acting as
attorneys-in-fact for all of them; and shall survive the delivery of an
assignment by a Member of the whole or any fraction of its Interest, except
that, where the whole of such Member’s Interest has been assigned or diluted in
accordance with this Agreement, the power of attorney of the assignor shall
survive the delivery of such assignment for the sole purpose of enabling Whitehall
Street, Whitehall Employee Fund or GHGP to execute, acknowledge, swear to,
deliver, record and file any instrument necessary or appropriate to effect such
substitution.  In the event of any
conflict between this Agreement and any document, instrument, conveyance or
certificate executed or filed by either Whitehall Street, Whitehall Employee
Fund or GHGP pursuant to such power of attorney, this Agreement shall control.

(c)                                  Each Member shall execute and deliver to either
Whitehall Street, Whitehall Employee Fund or GHGP, within five (5) days after
the receipt of Whitehall Street’s, Whitehall Employee Fund’s or GHGP’s request
therefor, such further designations, powers of attorney and other instruments
as Whitehall Street, Whitehall Employee Fund or GHGP deems necessary or
appropriate to carry out the provisions of this Agreement.

(d)                                 Notwithstanding the foregoing provisions of this Section
12.17, in the event that GHGP has been divested of its Administrative
Rights pursuant to Section 4.9(b) or has voluntarily ceased to manage or
administer the day-to-day business of the Company as contemplated by Section
3.2 and Section 4.1, then, in either case, the power of attorney
granted to GHGP pursuant to this Section 12.17 shall immediately be revoked and
terminated.

(e)                                  Each of Whitehall Street, Whitehall Employee Fund and
GHGP hereby agrees that prior to exercising any of its rights pursuant to this Section
12.17, such Member shall to the extent reasonably practicable provide to
the other Member reasonable notice of such action.

12.18                     Construction
of Documents.  The parties hereto
acknowledge that they were represented by counsel in connection with the
review, negotiation and drafting of this Agreement and that this Agreement
shall not, be subject to the principle of construing their meaning against the
party that drafted same.

 69
 

12.19                     Standards
of Conduct for the Managing Members. 
Whenever in this Agreement any of the Managing Members are permitted or
required to make a decision or take an action: 
(i) in its “discretion” or under a grant of similar authority or
latitude, such Managing Member shall be entitled to consider only such interest
and factors as it desires, including its own interests, and shall have no duty
or obligation to give any consideration to any interest of or factors affecting
the Company or the other Members, or (ii) in its “good faith” or “reasonable
discretion” or under another expressed standard, the Managing Member shall act
under such express standard and shall not be subject to any other or different
standard imposed by this Agreement or any other agreement contemplated herein
or by relevant provisions of law or in equity or otherwise, provided that nothing in this Section 12.19 shall be
interpreted to purport to eliminate the duty of good faith and fair dealing
inherent in every contract.

12.20                     Partnership
for Tax Purposes.  The Members hereby
agree that the Company shall be treated as a partnership for tax purposes under
U.S. federal, state and local income tax laws. 
In furtherance of the foregoing agreement, neither the Company nor any
of its Members will take any action or position or make any election for U.S.
federal, state or local income tax purposes, in a tax return or otherwise,
inconsistent with the classification of the Company as a partnership for U.S.
federal, state and local income tax purposes, including, for the avoidance of
doubt, any election under Treasury regulations Section 301.7701-3 to treat the
Company as a corporation for U.S. federal income tax purposes.

12.21                     Time of
Essence.  Time is of the essence in
the performance of each and every term of this Agreement.

[SIGNATURE PAGE FOLLOWS]

 70

IN WITNESS WHEREOF, the parties hereto have executed this Amended and
Restated Limited Liability Company Agreement as of the day and year first above
written.

	
   

  	
  THE MEMBERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  WHITEHALL STREET GLOBAL REAL
  ESTATE LIMITED PARTNERSHIP 2005

  
	
   

  	
   

  
	
   

  	
  By:

  	
  WH Advisors, L.L.C. 2005, its
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
             /S/
  PETER WEIDMAN

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Peter Weidman

  
	
   

  	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WHITEHALL STREET GLOBAL EMPLOYEE
  FUND 2005, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Whitehall Street Employee Funds
  2005 GP, L.L.C.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
             /S/
  PETER WEIDMAN

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Peter Weidman

  
	
   

  	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENGATE KAPALUA HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  Gengate Kapalua LP, LLC, its Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   /S/ KARIM ALIBHAI

  
	
   

  	
   

  	
  Name: Karim Alibhai

  
	
   

  	
   

  	
  Title: Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENGATE KAPALUA HOLDINGS GP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Gengate Kapalua LP, LLC, its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   /S/ KARIM ALIBHAI

  
	
   

  	
   

  	
  Name: Karim Alibhai

  
	
   

  	
   

  	
  Title: Manager

  
										

 

[SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

 

	
   

  	
   

  	
  MLP RCK, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Maui Land & Pineapple
  Company, Inc.,

  
	
   

  	
   

  	
   its Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
             /S/
  RYAN CHURCHILL

  
	
   

  	
   

  	
  Name: Ryan Churchill

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
             /S/
  ROBERT I. WEBBER

  
	
   

  	
   

  	
  Name: Robert I. Webber

  
	
   

  	
   

  	
  Title: Chirf Financial Officer & Senior Vice
  President

  
				

 

[SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

 

	
   

  	
  For purpose of Section 6.2(c) only:

  
	
   

  	
   

  
	
   

  	
  MAUI LAND & PINEAPPLE COMPANY,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  For purpose of Section 8.2 only:

  
	
   

  	
   

  
	
   

  	
  THE GENGATE GUARANTORS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /S/ MAHOOD KHIMJI

  
	
   

  	
  MAHMOOD KHIMJI

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /S/ KARIM ALIBHAI

  
	
   

  	
  KARIM ALIBHAIExhibit 10.3

 

TERMINATION OF MEMORANDUM OF
HOTEL GROUND LEASE AND 

SHORT FORM OF SECOND AMENDED AND RESTATED HOTEL GROUND LEASE

THIS TERMINATION OF
MEMORANDUM OF HOTEL GROUND LEASE AND SHORT FORM OF SECOND AMENDED AND RESTATED
HOTEL GROUND LEASE made as of the 27 day of March, 2007, between W2005
KAPALUA/GENGATE HOTEL REALTY, L.L.C., a Delaware limited liability company (“Lessee”), and MAUI LAND &
PINEAPPLE COMPANY, INC., a Hawaii corporation (“Lessor”),

W  I  T  N  E  S
S  E  T  H:

WHEREAS, Lessor and NI
Hawaii Resort, Inc. a Hawaii corporation (“Original Lessee”)
entered into that certain unrecorded Hotel Ground Lease dated February 24, 1996
(the “Original Lease”), pursuant to which
Lessor leased to Original Lessee the land described on Exhibit ”A” hereto
(the “Land”), and in connection therewith
executed a Memorandum of Hotel Ground Lease, dated February 24, 1996 (the “Memorandum”), which was recorded in
the Bureau of Conveyances of the State of Hawaii as Document No. 96-046331 (the
“Lease”); and

WHEREAS, the Original Lease
was amended from time to time and, as amended, the rights of Original Lessee
thereunder were assigned to and assumed by RCK Hawaii, LLC dba RCK Hawaii-Maui,
a Delaware limited liability company (“RCK Hawaii”),
pursuant to that certain Assignment of Ground Lease dated September 27, 2000,
which was recorded in the Bureau of Conveyances of the State of Hawaii as
Document No. 2000-135421; and

WHEREAS, Lessor and RCK
Hawaii entered into that certain unrecorded Second Amended and Restated Hotel
Ground Lease (the “Lease”)
effective as of January 31, 2001, amending and restating the Original
Lease; and

WHEREAS, to provide notice
of the Lease, Lessor and RCK Hawaii executed that certain Short Form of Second
Amended and Restated Hotel Ground Lease as of January 31, 2001, which was
recorded in the Bureau of Conveyances of the State of Hawaii as Document No.
2001-018415 (the “Short Form Lease”);
and

WHEREAS, the rights and
obligations of RCK Hawaii under the Lease were assigned to and assumed by
Lessee pursuant to that certain Assignment and Assumption of Lessee’s Interest
in Ground Lease and Related Agreements dated March 13, 2006, between RCK
Hawaii and Lessee, which was recorded in the Bureau of Conveyances of the State
of Hawaii as Document No. 2006-053675; and

WHEREAS, on this day, Lessor
and Lessee have terminated the Lease; and

WHEREAS, Lessor and Lessee
desire to terminate the Memorandum and Short Form Lease, to reflect the
termination of the Lease;

NOW,
THEREFORE, for and in consideration of the recitals and mutual covenants
contained herein, Lessor and Lessee hereby terminate the Memorandum and Short
Form Lease, and acknowledge and agree that the Land shall hereafter not be
burdened by such instruments.

WITNESS THE EXECUTION HEREOF
as of the date hereinabove first written.

	
   

  	
  W2005 KAPALUA/GENGATE HOTEL
  REALTY, L.L.C.,

  
	
   

  	
  a Delaware
  limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  W2005 Kapalua/Gengate Hotel Senior Mezzanine,

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

  
	
   

  	
   

  	
  Its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  W2005 Kapalua/Gengate Hotel Mezzanine,

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

  
	
   

  	
   

  	
  Its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  W2005 Kapalua/Gengate Hotel

  Holdings, L.L.C., a Delaware limited

  liability company, Its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Gengate Kapalua Holdings GP,

  LLC, a Delaware limited liability

  company, a member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Gencom Kapalua GP,

  LLC, a Delaware limited

  liability company, Its

  managing member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ GREG DENTON

  
	
   

  	
   

  	
  Greg Denton,

  
	
   

  	
   

  	
  Its Vice
  President

  

 

[Signature
Page for Termination of Memorandum of Hotel Ground Lease

and Short Form of Second Amended and Restated Hotel Ground Lease]

WITNESS THE EXECUTION HEREOF
as of the date hereinabove first written.

	
  

  	
  MAUI LAND & PINEAPPLE
  COMPANY, INC.,

  a Hawaii corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ RYAN CHURCHILL

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ryan Churchill

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Senior Vice
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ ROBERT I. WEBBER

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert I. Webber

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Chief Financial
  Officer & Senior Vice President

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