Document:

EX-10.3

ASSIGNMENT AND ASSUMPTION OF

REAL ESTATE PURCHASE AND SALE AGREEMENT

THIS ASSIGNMENT AND ASSUMPTION OF REAL ESTATE PURCHASE AND SALE AGREEMENT (this “Assignment”)
is made and entered into this 15th day of September, 2008, by and between GRUBB & ELLIS REALTY
INVESTORS, LLC, a Virginia limited liability company (“Assignor”), and G&E Apartment REIT Canyon
Ridge, LLC, a Delaware limited liability company, (“Assignee”).

WHEREAS, Assignor entered into that certain Real Estate Purchase and Sale Agreement dated as
of July 10, 2008 (“Purchase Agreement”) for that certain real property known as Apartments at
Canyon Ridge, 3868 Central Pike Road, Hermitage, Tennessee, with Apartments at Canyon Ridge, LLC, a
Delaware limited liability company (“Seller”), and

WHEREAS, Assignor wishes to assign to Assignee its rights pursuant to the Purchase Agreement,
relating to the purchase of that certain real property, with all improvements and appurtenances
thereto more particularly described in the Purchase Agreement.

NOW, THEREFORE, in consideration of the premises, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor hereby
assigns to Assignee all of Assignor’s right, title and interest in and to the Purchase Agreement in
order to expressly confer upon Assignee all of the benefits of a successor, assign or nominee of
Assignor under the Purchase Agreement.

Nothing in this Assignment shall be deemed to release Assignor from being directly liable to
Seller under the Purchase Agreement.

By executing this Assignment, Assignee hereby accepts the assignment of and assumes the
obligations set forth in the Purchase Agreement, as aforesaid.

Assignor will indemnify, defend and hold harmless Seller for any damages, including reasonable
attorneys fees and litigation costs from any suit, claim, demand or proceeding arising out of the
Assignment or by a breach of this Assignment.

Assignor hereby covenants and warrants to Seller that Assignee is the only assignee of the
Purchase Agreement and Assignee hereby covenants and warrants to Seller that Assignee (i) is in
good standing under the laws of the State in which the Property is located; (ii) all documents
executed by Assignee which are to be delivered to Seller at Closing are or at the Closing will be
duly authorized, executed, and delivered by Assignee, and are or at the Closing will be legal,
valid, and binding obligations of Assignee, and do not and at the Closing will not violate any
provisions of any agreement to which Assignee is a party or to which it is subject; (iii) Assignee
shall furnish all of the funds for the purchase of the Property (other than funds supplied by
institutional lenders which will hold valid mortgage liens against the Property) and such funds
will not be from sources of funds or properties derived from any unlawful activity; and (iv)
Assignee is a sophisticated investor with substantial experience in investing in assets of the same
type as the Property and has such knowledge and experience in financial and business matters that
Assignee is capable of evaluating the merits and risks of an investment in the Property.

This Assignment shall be governed by, and construed in accordance with, the laws of the State
of Tennessee. This Assignment may be executed in counterparts, including facsimile counterparts,
each of which shall be deemed an original and all of which shall constitute one and the same
instrument.

IN WITNESS WHEREOF, Assignor and Assignee have caused this Assignment to be executed as of the
date and year first set forth herein.

	 
	ASSIGNOR
	GRUBB & ELLIS REALTY INVESTORS, LLC, a Virginia limited liability company

By: /s/ Andrea R. Biller

Its: Executive Vice President

	ASSIGNEE

	 

	G&E APARTMENT REIT CANYON RIDGE, LLC, a Delaware limited liability company

By: /s/ Shannon K S Johnson

Its: Authorized Signatory

	Consented to by Seller:

	 

	APARTMENTS AT CANYON RIDGE, LLC, a Delaware limited liability company

By: PRINCIPAL REAL ESTATE

INVESTORS, LLC, a Delaware limited

liability company, its authorized

signatory

By: /s/ Johnna Donahue

Johnna E. Donahue

Senior Acquisition Consultant

By: /s/ Cara A. Underwood

Cara A. Underwood

Investment Director-Asset ManagementFiled by Bowne Pure Compliance

Exhibit 10.1

THIRD AMENDMENT TO MORGANS LAS VEGAS, LLC

LIMITED LIABILITY COMPANY AGREEMENT

THIS THIRD AMENDMENT (“Amendment”) is made effective as of the 23rd day of September, 2008
(“Effective Date”), by and between MORGANS/LV INVESTMENT LLC, a Delaware limited liability company
(“Morgans”), and ECHELON RESORTS CORPORATION, a Nevada corporation (“Boyd”). Morgans and Boyd may
hereinafter be referred to singularly as a “Party” or “Member” or collectively as the “Parties” and
the “Members”.

W I T N E S S E T H:

WHEREAS, Morgans and Boyd entered into a certain Limited Liability Company Agreement, dated
January 3, 2006, for the formation of the Company (the “Original Agreement”).

WHEREAS, Morgans and Boyd amended the Original Agreement pursuant to that certain First
Amendment to Morgans Las Vegas, LLC Limited Liability Company Agreement made effective as of May
15, 2006 (the “First Amendment”).

WHEREAS, Morgans and Boyd further amended the Original Agreement pursuant to that certain
Second Amendment to Morgans Las Vegas, LLC Limited Liability Company Agreement made effective as of
June 30, 2008 (the “Second Amendment” and together with the Original Agreement and the First
Amendment, the “Operating Agreement”).

WHEREAS, the Members have jointly decided to delay the construction of the Hotels based upon
credit market conditions and the availability of satisfactory financing.

WHEREAS, the Members desire to extend the Outside Start Date and make certain other
modifications and amendments to the Operating Agreement.

NOW, THEREFORE, for and in consideration of the mutual promises of the Members and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Members agree as follows:

A. Incorporation of Recitals/Definitions. The foregoing recitals are hereby incorporated
herein and made a part hereof as if fully set forth herein. Unless specifically defined herein, all defined terms used in this Amendment shall have the same meanings as those
set forth in the Operating Agreement.

 

 

 

B. Operative Amendments.

1. Revised Definitions

The following definitions of the Operating Agreement are hereby amended and restated in their
entirety to read as follows:

“Outside Start Date” shall mean December 31, 2009.

2. New Definition

The following new definitions shall be added to the Operating Agreement:

“Early Termination Notice” shall mean a notice provided by either Morgans or Boyd as
set forth in Section 4.03(c).

“Operating Agreement” or “Agreement” shall mean the Morgans Las Vegas, LLC
Limited Liability Company Agreement, dated as of January 3, 2006, between Morgans and Boyd, as
amended by the First Amendment to Morgans Las Vegas, LLC Limited Liability Company Agreement, dated
as of May 15, 2006; the Second Amendment to Morgans Las Vegas, LLC Limited Liability Company
Agreement, dated as of June 30, 2008; and the Third Amendment.

“Third Amendment” shall mean the Third Amendment to Morgans Las Vegas, LLC Limited
Liability Company Agreement, dated as of September 23, 2008.

3. Modifications to Operating Agreement; Outside Start Date

Section 4.03 is hereby deleted in its entirety and replaced with the following:

“Section 4.03 Modifications to Operating Agreement; Outside Start Date.

(a) As soon as practicable after the date hereof and in any event prior to the
Contribution Date, the Members shall seek to agree upon modifications to this Agreement (to
be approved by each Member, in its sole and absolute discretion) to provide for (i) a
reduced Percentage Interest for each Member in the Company (and in connection therewith,
the Members may elect to obtain additional third party equity to cover any shortfall in the
required equity for the Project as a result of such reduction), (ii) a reduction in
Morgans’ Capital Commitment, and in Morgans’ and Boyd’s respective Capital Contribution
obligations, to an amount equal to (x) Morgans’ and Boyd’s pro rata share of

 

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Predevelopment Costs incurred by the Company through the date of the Third Amendment
pursuant to the Predevelopment Budgets previously approved by Morgans and Boyd, together
with the payments made pursuant to Section 6(a) and Section 6(b) of the Third Amendment,
plus (y) Morgans’ and Boyd’s pro rata share of Predevelopment Costs incurred by the
Company from October 1, 2008 through December 31, 2009 pursuant to the new Predevelopment
Budget as described in Section 7 of the Third Amendment, plus (z) such additional
amounts (if any) as may be determined by each of Morgans and Boyd in their sole discretion,
respectively, (iii) such other amendments to this Agreement that either Member deems
appropriate as a result of such reductions. In amplification and not in limitation of the
foregoing, and notwithstanding anything to the contrary in this Agreement, the definition
of Morgans Capital Commitment set forth in Section 1.01 of this Agreement, and the Capital
Contribution amounts and requirements of each Member as set forth in Section 5.01(b) and
5.01(c) of this Agreement, shall be null, void and of no further force or effect unless and
until the Members mutually agree upon amendments to such provisions as described in the
preceding sentence.

(b) Notwithstanding anything to the contrary contained herein, if for any reason (i)
the Contribution Date has not occurred on or prior to the Outside Start Date (including as
a result of the issuance of an Early Termination Notice) or (ii) the Members have not, upon
the occurrence of the Outside Start Date, amended this Agreement in writing to reduce their
Percentage Interests, and to make such other amendments to this Agreement as provided in
Section 4.03(a), either Member may dissolve the Company. Upon such dissolution (or
dissolution pursuant to Section 4.03(c) below), this Agreement shall terminate, and neither
Member shall have any claim against the other Member for any costs or expenses incurred or
spent as of such dissolution date, including but not limited to the Predevelopment Costs
funded by such Member and any other such pursuit costs incurred by such Member nor shall
either Member have any other liability or obligation to each other of any kind pursuant to
this Agreement except for (i) any costs or expenses incurred by the Company or Members
prior to such dissolution date, that have not been the subject of a funded Capital Call
Notice, to the extent such costs and expenses are consistent with the Predevelopment
Budget, and (ii) any obligations or liabilities that expressly survive the termination of
this Agreement as provided in this Section 4.03.

(c) Either Member may also dissolve the Company and terminate this Agreement prior to
the Outside Start Date, for any reason in its sole discretion, upon twenty (20) days prior
written notice to the other Member with a reference to this Section 4.03(c) (an “Early
Termination Notice”).

(d) In the event of any dissolution of the Company and termination of this Agreement
by either Member pursuant to this Section 4.03 following the passage of the Outside Start
Date or upon the issuance of an Early Termination Notice by Morgans or Boyd, then neither
Party shall be entitled to the use or ownership of any plans, specifications, drawings,
reports, test results or other materials

 

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prepared by or on behalf of the Company with respect to the Project, without the prior
written consent of the other Party. Each Party unconditionally and irrevocably waives and
releases all claims against the other Party arising in connection with such dissolution and
termination, including (without limitation) any claims alleging a failure of the other
Party to negotiate in good faith; provided, however, nothing contained herein shall relieve
the Members’ obligations to fund or reimburse amounts provided for under the Predevelopment
Budget as of such dissolution or termination date or otherwise provided under Section
4.03(b) above. The provisions of this Section 4.03 shall survive the dissolution of the
Company or the termination or expiration of this Agreement.”

4. Section 5.09 and the Deposit

Section 5.09 is hereby deleted in its entirety. Contemporaneously with the execution and
delivery of this Third Amendment, Boyd shall return to Morgans by wire transfer (x) the Deposit in
the amount of $30,000,000, plus (y) fifty percent (50%) of the interest earned on the
Deposit through September 21, 2008, in the amount of $1,047,645.54, less the $1,541,714
amount described in Section 6(d) hereof. Boyd shall retain fifty percent (50%) of the interest
earned on the Deposit. Morgans and Boyd agree that this reimbursement constitutes a complete and
final release and satisfaction of each Member’s obligations related to or arising from the Deposit,
provided that (a) each Member is responsible for all income taxes payable in respect of its portion
of such interest on the Deposit, and (b) Boyd shall promptly wire to Morgans (or Morgans shall be
entitled to a credit in the Company’s records for) fifty percent (50%) of all interest accrued on
the Deposit in Boyd’s account after September 21, 2008.

5. Additional Modifications

(a) The following provisions of the Operating Agreement are hereby deleted from the Operating
Agreement: (i) Definition of “Construction Loan Guaranty”; (ii) Second sentence of definition of
“Cost Overruns”; (iii) “Echelon Place Cost Overrun”; (iv) Section 4.01; (v) Section 5.01(b) and
5.01(c); (vi) Section 5.02; (vii) Section 5.06(a) and Exhibit K; (viii) Section 9.03; and (ix)
Section 9.06.

(b) The letter agreement between Morgans and Boyd dated May 15, 2006 is hereby terminated and
is null, void and of no further force or effect.

6. Certain Payments

(a) Morgans and Boyd hereby approve, and agree to fund, a Capital Call in the aggregate amount
of $3,946,009 in respect of certain pre-development costs identified in a letter from Boyd to
Morgans dated September 12, 2008 (the “9/12/08 Invoice”). Morgans and Boyd agree that the payment
of such Capital Call by both Parties is reflected in the net payment from Boyd to Morgans set forth
in Section 6(d) below, and such net payment constitutes a complete and final release and
satisfaction of Morgans’ obligations, and the Company’s obligations to Boyd, related to or arising
from the 9/12/08 Invoice and the costs described therein. Boyd shall pay all costs set forth in
the

 

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9/12/08 Invoice by the date fifteen (15) business days after the later of (x) the date of this
Amendment, or (y) receipt of an invoice for the applicable cost, and Boyd shall have no further
claim against Morgans or the Company for the costs described in the 9/12/08 Invoice or any costs
for similar or related items unless specifically set forth in the revised Predevelopment Budget
described in Section 7 hereof. Morgans and Boyd shall each receive Capital Contribution credit for
fifty percent (50%) of the amount of the Capital Call described in this Section 6(a).

(b) Morgans and Boyd further approve, and agree to fund, a Capital Call in the aggregate
amount of $862,581 in respect of certain close-out obligations to third parties and reimbursable
expenses paid or to be paid by Morgans on behalf of the Company, as provided by Morgans to Boyd in
a schedule dated September 22, 2008 (the “9/22/08 Invoice”). Morgans and Boyd agree that the
payment of such Capital Call by both parties is reflected in the net payment set forth in Section
6(d) below, and such net payment constitutes a complete and final release and satisfaction of
Boyd’s obligations, and the Company’s obligation to Morgans, related to or arising from the 9/22/08
Invoice and the costs described therein. Morgans shall pay all costs set forth in the 9/22/08
Invoice by the date fifteen (15) business days after the later of (x) the date of this Amendment,
or (y) receipt of an invoice for the applicable cost and Morgans shall have no further claim
against Boyd or the Company for the costs described in the 9/22/08 Invoice or any costs for similar
or related items unless specifically set forth in the revised Predevelopment Budget described in
Section 7 hereof. Morgans and Boyd shall each receive Capital Contribution credit for fifty
percent (50%) of the amount of the Capital Call described in this Section 6(b).

(c) The amounts described in this Section 6 represent a complete, final and binding
determination of all unpaid Predevelopment Costs incurred by or on behalf of the Company through
September 30, 2008.

(d) The wire transfer from Boyd to Morgans of $31,047,645.54 shall be reduced by $1,541,714,
for a total net payment of $29,505,931.54, which represents the net amount payable by Boyd to
Morgans after taking into account certain outstanding Capital Call amounts owed by Boyd and Morgans
to the Company and certain amounts owed by the Company to each of Boyd and Morgans, and which
calculations have been approved in writing by Boyd and Morgans.

7. Predevelopment Budget

Morgans and Boyd agree that, notwithstanding anything to the contrary contained in the
Operating Agreement, each Member shall fund fifty percent (50%) of the Predevelopment Costs (which
fifty percent (50%) amount shall not exceed $418,713.84 for each Member) set forth in the revised
9/19/08 Predevelopment Budget covering the period from October 1, 2008 through December 31, 2009,
which Predevelopment Budget is hereby approved by the Parties and supersedes any prior
Predevelopment Budget. The amounts set forth in such revised Predevelopment Budget shall be funded
pursuant to Capital Calls issued in accordance with the terms of the Operating Agreement; provided,
however, the Members agree that any amounts required to be funded by either Member

 

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pursuant to any pending or future Capital Call Notice shall be netted against any funds
required to be paid to any such Member (or its affiliates) by the other Member or the Company in
respect of the cost items described in such Capital Call Notice, such that the Members shall only
be required to fund a Capital Call if and to the extent that the amount to be reimbursed to such
Member for cost items described in such Capital Call Notice is less than fifty percent (50%) of the
amounts requested in the Capital Call Notice.

8. Exhibit “E”

The Members agree that notwithstanding anything to the contrary contained in the Operating
Agreement, as amended herein, and to the extent not otherwise prohibited, neither Member is
permitted to act unilaterally with respect to the following, which shall be a Joint Decision
effective the date of this Third Amendment, and added as (v) to Exhibit “E” of the Operating
Agreement.

“(v) Entry by the Company, or any of the Members on behalf of the Company, into any agreement
or commitment inconsistent with the Predevelopment Budget, as revised by the Third Amendment, or
which would otherwise require funding by any Member in excess of such revised Predevelopment
Budget.”

C. Counterparts. This Amendment may be executed in one or more counterparts, each of which
shall be deemed to be the same document. The provisions of this Amendment shall survive any
termination or dissolution of the Company.

D. No Other Amendments. Except as specifically amended hereby, all of the other terms and
conditions of the Operating Agreement remain in full force and effect in accordance with its terms.

E. Governing Law. All questions concerning the construction, validity, and interpretation of
this Amendment will be governed by and construed in accordance with the internal law (and not the
law of conflicts) of Delaware.

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the Parties have executed this Amendment as of the day and year first
above set forth.

	 	 	 	 	 	 
	 	MORGANS/LV INVESTMENT LLC

 	 
	 	By:	Morgans Group LLC
 	 
	 
	 	 	 
	 	 	By:	                                                  /s/ Marc Gordon
 	 
	 	 	Name:  	Marc Gordon 	 
	 	 	Title:	Chief Investment Officer and Executive
 Vice
President, Capital Markets	 
	 

	 	 	 	 	 	 
	 	ONLY TO THE EXTENT NECESSARY TO GIVE EFFECT TO THIS AMENDMENT:

Morgans Hotel Group Co.

 	 
	 	 	By:	/s/ Marc Gordon
 	 
	 	 	Name:  	Marc Gordon 	 
	 	 	Title:	Chief Investment Officer and
Executive
 Vice
President, Capital Markets	 
	 

[Signatures Continue on Next Page]

 

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[Signatures Continued]

	 	 	 	 	 	 
	 	ECHELON RESORTS CORPORATION

 	 
	 	 	By:	/s/ Robert Boughner
 	 
	 	 	Name:  	Robert Boughner  	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 	 
	 	ONLY TO THE EXTENT NECESSARY TO GIVE EFFECT TO THIS AMENDMENT:

BOYD GAMING CORPORATION

 	 
	 	 	By:	/s/ Paul J. Chakmak
 	 
	 	 	Name:  	Paul J. Chakmak 	 
	 	 	Title:  	EVP & COO 	 
	 

 

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