Document:

Limited Waiver and Amendment to Term Credit Agreement

 Exhibit 10.2 
 LIMITED WAIVER AND AMENDMENT 
 Dated as of March 3, 2006 
 Citicorp North America, Inc., 
 as Administrative Agent and Collateral Agent

 Two Penns Way, Suite 200 
 New Castle, Delaware 19720

  

	 	Re:	Sunstone Hotel Partnership, LLC Term Credit Facility 

 Ladies and Gentlemen: 
 Reference is made to that certain Term Credit Agreement dated as of October 26, 2004, as amended,
among Sunstone Hotel Partnership, LLC (“Borrower”); Sunstone Hotel Investors, Inc. (“Parent Guarantor”) and the subsidiaries of the Borrower listed therein as subsidiary guarantors, as guarantors;
Citicorp North America, Inc. (“CNAI”), as administrative agent and collateral agent (“Agent”); the financial institutions identified therein as lenders (the “Lenders”) or lender
parties (the “Lender Parties”); Calyon New York Branch and Deutsche Bank Securities Inc., as co-documentation agents, and Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan
Stanley Senior Funding, Inc., as joint lead arrangers and joint book running managers (as amended prior to the date hereof, the “Credit Agreement”). Capitalized terms not otherwise defined herein shall have their respective
meanings set forth in the Credit Agreement. 
 On or about December 22, 2005, SHP Ogden, LLC (the “Ogden
Subsidiary”) ceased to be bound by its applicable Excluded Subsidiary Agreement. Borrower desires that the Ogden Subsidiary continue to be an Excluded Subsidiary for all purposes under the Credit Agreement and the other Loan Documents,
such that the Ogden Subsidiary shall not be required to execute and deliver a Guaranty Supplement or otherwise become a Guarantor, whether or not the Ogden Subsidiary incurs Non-Recourse Debt not prohibited by the Credit Agreement within the 90 day
period set forth in Section 5.01(j)(i) of the Credit Agreement. Subject to the terms and conditions of this Limited Waiver and Amendment (this “Agreement”), Agent and the Lenders are willing to waive such compliance to
such extent. 
 Furthermore, Borrower desires that the schedule amendment and document delivery requirements set forth in the last clause of
Section 5.01(j)(i) and in the proviso of Section 5.01(j)(ii) be modified, effective as of October 26, 2004, such that (i) to the extent necessary to make such Schedule 4.01(y) to the Credit Agreement accurate and complete,
Borrower shall provide an amended Schedule 4.01(y) to the Administrative Agent within 15 Business Days after the end of each calendar quarter, beginning with the calendar quarter ending March 31, 2006 and (ii) Borrower shall provide copies
of any new agreements in respect of Non-Recourse Debt identified in such amended Schedule 4.01(y) to the Administrative Agent promptly following any request by the Administrative Agent therefor. Subject to the terms and conditions of this Agreement,
Agent and the Lenders are willing to agree to the foregoing. 
 At the request of Borrower, and in consideration of the mutual undertakings
herein expressed, Agent and the Lenders hereby (x) agree that the Ogden Subsidiary shall continue to be an Excluded Subsidiary for all purposes under the Credit Agreement and the other Loan Documents, such that, among other things, the Ogden
Subsidiary shall not be required to execute and deliver a Guaranty Supplement or otherwise become a Guarantor, whether or not the Ogden Subsidiary incurs Non-Recourse Debt not prohibited by the Credit Agreement within the 90 day period set forth in
Section 5.01(j)(i) of the Credit Agreement; provided, however, that if the Ogden Subsidiary does not incur Non-Recourse Debt not prohibited by the Credit Agreement by December 31, 2006, the Ogden Subsidiary shall cease to be an

 
Excluded Subsidiary on January 1, 2007 and shall be required to comply with the provisions of Section 5.01(j)(i) (without reference to the
provisions of this Agreement) within ten (10) Business Days thereafter, and (y) waive (i) compliance with all contrary provisions of the Credit Agreement solely to the extent necessary to effect the agreement set forth in clause
(x) above, and (ii) any Default or Event of Default that would occur under the Credit Agreement in the absence of the amendment set forth in clause (x) above and the waiver set forth in clause (y)(i) above. 
 Agent and the Lenders also hereby (a) agree that the Schedule amendment and document delivery requirements set forth in the last clause of
Section 5.01(j)(i) and in the proviso of Section 5.01(j)(ii) are hereby modified, effective as of October 26, 2004, such that (i) to the extent necessary to make Schedule 4.01(y) to the Credit Agreement accurate and complete,
Borrower shall provide an amended Schedule 4.01(y) to the Administrative Agent within 15 Business Days after the end of each calendar quarter, beginning with the calendar quarter ending March 31, 2006 and (ii) Borrower shall provide copies
of any new agreements in respect of Non-Recourse Debt identified in such amended Schedule 4.01(y) to the Administrative Agent promptly following any request by the Administrative Agent therefor and (b) waive (i) compliance with all
contrary provisions of the Credit Agreement solely to the extent necessary to effect such amendments set forth in clause (a) above, and (ii) any Default or Event of Default that would occur under the Credit Agreement in the absence of the
amendments set forth in clause (a) above and the waiver set forth in clause (b)(i) above. 
 Borrower and Parent Guarantor represent and
warrant that the factual matters described herein are true and correct in all material respects as of the date hereof. 
 The waivers,
agreements and amendments set forth herein shall be limited precisely as written, and nothing in this Agreement shall be deemed to (x) constitute (i) a waiver of any other Default or Event of Default or (ii) a waiver or amendment of
any other term, provision or condition of the Credit Agreement, any of the other Loan Documents or any other instrument or agreement referred to therein, or (y) except as set forth herein, prejudice any right or remedy that Agent or any Lender
Party may now have or may have in the future under or in connection with the Credit Agreement, the other Loan Documents or any other instrument or agreement referred to in any of them or in equity or at law. 
 This Agreement shall become effective as of the date first above written when, and only when, Agent shall have received (i) counterparts of this
Agreement executed by Borrower, Parent Guarantor, Agent and the Required Lenders or, as to any of the Lenders, advice satisfactory to Agent that such Lender has executed this Agreement, and (ii) the Consent attached hereto executed by each
Guarantor. 
 Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses of Agent in connection with the preparation,
execution, delivery and administration, modification and amendment of this Agreement and any instruments and documents to be delivered hereunder (including, without limitation, the reasonable fees and expenses of counsel for Agent) in accordance
with the terms of Section 9.04 of the Credit Agreement. 
 On and after the effectiveness of this Agreement, each reference in the
Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as amended by this Agreement. 
 The Credit Agreement (as modified to the extent specifically provided above), the Notes and each of the other Loan Documents, except to the extent of the
limited waivers specifically provided 

  

 2 

 
above, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. The execution, delivery and effectiveness
of this Agreement shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or of Agent under the Credit Agreement or any of the Loan Documents, nor constitute a waiver of any provision of the
Credit Agreement or any of the Loan Documents. This Agreement shall constitute a Loan Document. 
 If you agree to the terms and provisions
hereof, please evidence such agreement by executing and returning a counterpart of this Agreement to Malcolm K. Montgomery of Shearman & Sterling LLP by facsimile (646-848-7587), with four duplicate originals by overnight courier.

 [Balance of page intentionally left blank.] 
  

 3 

 This Agreement may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier shall
be effective as delivery of a manually executed counterpart of this Agreement. 
 This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York. 
  

			
	Very truly yours,
	
	SUNSTONE HOTEL PARTNERSHIP, LLC
		
	 By
	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

 (Signatures continued on next page) 
  

 S-1 

			
	Agreed as of the date first above written:
	
	 CITICORP NORTH AMERICA, INC.,
 as
Administrative Agent and Collateral Agent and as a Lender

		
	By	 	/s/ Jeanne M. Craig
		 	 Name: Jeanne M. Craig
 Title: Vice
President

 [Lender signatures continued on the following pages.] 
  

 S-2 

  

			
	[Lender signature page]
	
	Merrill Lynch Capital Corporation,
	 as a Lender

		
	By	 	/s/ John C. Rowland
		 	 Name: John C. Rowland
 Title: Vice
President

 [Signatures continued on next page] 
  

 S-3 

  

			
	[Lender signature page]
	
	MORGAN STANLEY SENIOR FUNDING, INC.
	 as a Lender

		
	By	 	/s/ Eugene F. Martin
		 	 Name: Eugene F. Martin
 Title: Vice
President
           Morgan Stanley Senior Funding, Inc.

			
		
	By	 	  
		 	 Name:
 Title:

 [Signatures continued on next page] 
  

 S-3 

  

			
	[Lender signature page]
	
	BARCLAYS BANK PLC
	 as a Lender

		
	By	 	/s/ Haejin Baek
		 	 Name: Haejin Baek
 Title: Vice
President

			
		
	By	 	  
		 	 Name:
 Title:

 [Signatures continued on next page] 
  

 S-3 

  

			
	[Lender signature page]
	
	Wachovia Bank, National Association,
	 as a Lender

		
	By	 	/s/ Dean R. Whitehill
		 	 Name: Dean R. Whitehill
 Title: Vice
President

			
		
	By	 	  
		 	 Name:
 Title:

 [Signatures continued on next page] 
  

 S-3 

  

			
	[Lender signature page]
	
	Bank of America, N.A.
	 as a Lender

		
	By	 	/s/ Lesa J. Butler
		 	 Name: Lesa J. Butler
 Title: Senior Vice
President

 [Signatures continued on next page] 
  

 S-3 

  

			
	[Lender signature page]
	
	 GRAYSON & CO
 BY: BOSTON
MANAGEMENT AND RESEARCH
 AS INVESTMENT ADVISOR,

	 as a Lender

		
	By	 	/s/ Michael B. Botthof
		 	 Name: Michael B. Botthof
 Title: Vice
President

			
		
	By	 	  
		 	 Name:
 Title:

 [Signatures continued on next page] 
  

 S-3 

  

			
	[Lender signature page]
	
	 SENIOR DEBT PORTFOLIO
 BY: BOSTON
MANAGEMENT AND RESEARCH
 AS INVESTMENT ADVISOR,

	 as a Lender

		
	By	 	/s/ Michael B. Botthof
		 	 Name: Michael B. Botthof
 Title: Vice
President

			
		
	By	 	  
		 	 Name:
 Title:

 [Signatures continued on next page] 
  

 S-3 

  

			
	[Lender signature page]
	
	BEAR STEARNS CORPORATE LENDING INC.
	 as a Lender

		
	By	 	/s/ Victor Bulvacchelli
		 	 Name: Victor Bulvacchelli
 Title: Vice
President

  

 S-3 

 CONSENT 
 Dated as of March 3, 2006 
 Each of the undersigned, as Guarantor under the Guaranty set forth in Article
VII of the Term Credit Agreement dated as of October 26, 2004, in favor of Agent and the other Secured Parties identified in the Credit Agreement referred to in the foregoing Limited Waiver and Amendment (the
“Guaranty”), hereby consents to such Limited Waiver and Amendment and hereby confirms and agrees that notwithstanding the effectiveness of such Limited Waiver and Amendment, the Guaranty is, and shall continue to be, in full
force and effect and is hereby ratified and confirmed in all respects. 
  

			
	SUNSTONE HOTEL INVESTORS, INC.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	BUY EFFICIENT, L.L.C.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	ROCHESTER BEVFLOW, INC.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	ROCHESTER RIBM LESSEE, INC.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	RTS LESSEE, INC.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

 [Signatures continued on next page] 
  

 C-1 

			
	SHP DT BEVFLOW, INC.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	SUNSTONE HOTEL TRS LESSEE, INC.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	 SUNSTONE HOTELS, LLC

		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	SUNSTONE NAPA MERLOT LESSEE, INC.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	SUNSTONE NAPA, L.L.C.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	SUNSTONE HOTELS ROCHESTER, L.L.C.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	SUNSTONE OUTPARCEL, L.L.C.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

 [Signatures continued on next page] 
  

 C-2 

			
	 SUNSTONE PLEDGECO, LLC

		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	SUNSTONE ROCHESTER OUTPARCEL, L.L.C.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	SUNSTONE WINDY HILL, L.L.C.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	SUNSTONE WINDY HILLS LESSEE, INC.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	TTS FACILITIES, LLC
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	WB SUNSTONE-BOISE, INC.
		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	 WB SUNSTONE-BOISE, LLC

		
	By:	 	/s/ Jon D. Kline
		 	 Name: Jon D. Kline
 Title: Vice
President

 [Signatures continued on next page] 
  

 C-3 

			
	 SUNSTONE JAMBOREE, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	 SUNSTONE JAMBOREE LESSEE, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	WB SUNSTONE-LAKE OSWEGO, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	 WB SUNSTONE-LAKE OSWEGO, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	WB SUNSTONE-PORTLAND, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	 WB SUNSTONE-PORTLAND, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	WB SUNSTONE-RIVERSIDE, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

 [Signatures continued on next page] 
  

 C-4 

			
	 WB SUNSTONE-RIVERSIDE, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title:Vice
President

  

			
	WESTBROOK HOTEL CO-INVESTMENT PARTNERS IV, L.L.C.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	WESTBROOK HOTEL PARTNERS IV, L.L.C.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	 WHP BEVFLOW, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	WHP TEXAS BEVERAGE-1, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	WHP TEXAS BEVERAGE-2, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

  

 C-5Limited Waiver and Amendment to Revolving Credit Agreement

 Exhibit 10.3 
 LIMITED WAIVER AND AMENDMENT 
 Dated as of March 3, 2006 
 Citicorp North America, Inc., 
 as Administrative Agent and Collateral Agent

 Two Penns Way, Suite 200 
 New Castle, Delaware 19720

  

	 	Re:	Sunstone Hotel Partnership, LLC Revolving Credit Facility 

 Ladies and Gentlemen: 
 Reference is made to that certain Revolving Credit Agreement dated as of October 26, 2004, as amended,
among Sunstone Hotel Partnership, LLC (“Borrower”); Sunstone Hotel Investors, Inc. (“Parent”) and the subsidiaries of the Borrower listed therein as subsidiary guarantors, as guarantors; Citicorp North
America, Inc. (“CNAI”), as administrative agent and collateral agent (“Agent”); the financial institutions identified therein as lenders (the “Lenders”) or lender parties (the
“Lender Parties”); Calyon New York Branch and Deutsche Bank Securities Inc., as co-documentation agents, and Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley Senior
Funding, Inc., as joint lead arrangers and joint book running managers (as amended prior to the date hereof, the “Credit Agreement”). Capitalized terms not otherwise defined herein shall have their respective meanings set
forth in the Credit Agreement. 
 Borrower desires to cause the Holiday Inn Hotel located at 2005 Highland Avenue, Hollywood, California (the
“Hollywood Asset”) to be released as a Borrowing Base Asset pursuant to Section 5.02(d)(ii)(C) of the Credit Agreement. Section 5.04(b)(iv) of the Credit Agreement prohibits any Borrowing Base Asset other than the
Marriott Hotel located at 3425 Solano Avenue, Napa, California (the “Napa Asset”) to account for greater than 25% of the aggregate Adjusted Net Operating Income for all Borrowing Base Assets unless approved by the Required
Lenders. Following the release of the Hollywood Asset, the Napa Asset and the Hyatt Regency Hotel located at 1107 Jamboree Road, Newport Beach, California (the “Newport Beach Asset”) will each account for greater than 25% of
the aggregate Adjusted Net Operating Income of all Borrowing Base Assets. Accordingly, Borrower and Parent have requested that Agent and the Lenders waive compliance with the terms of Section 5.04(b)(iv) of the Credit Agreement solely to the
extent necessary to permit (i) the Napa Asset to account for not greater than 30% of the aggregate Adjusted Net Operating Income of all Borrowing Base Assets, and (ii) the Newport Beach Asset to account for not greater than 30% of the
aggregate Adjusted Net Operating Income of all Borrowing Base Assets. Subject to the terms and conditions of this Limited Waiver and Amendment (this “Agreement”), Agent and the Lenders are willing to agree to waive such
compliance to such extent. 
 In addition, on or about December 22, 2005, SHP Ogden, LLC (the “Ogden
Subsidiary”) ceased to be bound by its applicable Excluded Subsidiary Agreement. Borrower desires that the Ogden Subsidiary continue to be an Excluded Subsidiary for all purposes under the Credit Agreement and the other Loan Documents,
such that the Ogden Subsidiary shall not be required to execute and deliver a Guaranty Supplement or otherwise become a Guarantor, whether or not the Ogden Subsidiary incurs Non-Recourse Debt not prohibited by the Credit Agreement within the 90 day
period set forth in Section 5.01(j)(i) of the Credit Agreement. Subject to the terms and conditions of this Agreement, Agent and the Lenders are willing to waive such compliance to such extent. 

 Furthermore, Borrower desires that the schedule amendment and document delivery requirements set forth in
the last clause of Section 5.01(j)(i) and in the proviso of Section 5.01(j)(ii) be modified, effective as of October 26, 2004, such that (i) to the extent necessary to make such Schedule 4.01(y) to the Credit Agreement accurate
and complete, Borrower shall provide an amended Schedule 4.01(y) to the Administrative Agent within 15 Business Days after the end of each calendar quarter, beginning with the calendar quarter ending March 31, 2006 and (ii) Borrower shall
provide copies of any new agreements in respect of Non-Recourse Debt identified in such amended Schedule 4.01(y) to the Administrative Agent promptly following any request by the Administrative Agent therefor. Subject to the terms and conditions of
this Agreement, Agent and the Lenders are willing to agree to the foregoing. 
 At the request of Borrower, and in consideration of the
mutual undertakings herein expressed, Agent and the Lenders hereby waive (a) Parent’s compliance with the provisions of Section 5.04(b)(iv) of the Credit Agreement solely to the extent necessary to permit (i) the Napa Asset to
account for not greater than 30% of the aggregate Adjusted Net Operating Income of all Borrowing Base Assets, and (ii) the Newport Beach Asset to account for not greater than 30% of the aggregate Adjusted Net Operating Income of all Borrowing
Base Asset, and (b) any Default or Event of Default that would occur under the Credit Agreement in the absence of the waiver set forth in clause (a) above. Also at the request of Borrower, and in consideration of the mutual undertakings
herein expressed, Agent and the Lenders hereby (x) agree that the Ogden Subsidiary shall continue to be an Excluded Subsidiary for all purposes under the Credit Agreement and the other Loan Documents, such that, among other things, the Ogden
Subsidiary shall not be required to execute and deliver a Guaranty Supplement or otherwise become a Guarantor, whether or not the Ogden Subsidiary incurs Non-Recourse Debt not prohibited by the Credit Agreement within the 90 day period set forth in
Section 5.01(j)(i) of the Credit Agreement; provided, however, that if the Ogden Subsidiary does not incur Non-Recourse Debt not prohibited by the Credit Agreement by December 31, 2006, the Ogden Subsidiary shall cease to be an
Excluded Subsidiary on January 1, 2007 and shall be required to comply with the provisions of Section 5.01(j)(i) (without reference to the provisions of this Agreement) within ten (10) Business Days thereafter, and (y) waive
(i) compliance with all contrary provisions of the Credit Agreement solely to the extent necessary to effect the agreement set forth in clause (x) above, and (ii) any Default or Event of Default that would occur under the Credit
Agreement in the absence of the amendment set forth in clause (x) above and the waiver set forth in clause (y)(i) above. 
 Agent and
the Lenders also hereby (a) agree that the Schedule amendment and document delivery requirements set forth in the last clause of Section 5.01(j)(i) and in the proviso of Section 5.01(j)(ii) are hereby modified, effective as of
October 26, 2004, such that (i) to the extent necessary to make Schedule 4.01(y) to the Credit Agreement accurate and complete, Borrower shall provide an amended Schedule 4.01(y) to the Administrative Agent within 15 Business Days after
the end of each calendar quarter, beginning with the calendar quarter ending March 31, 2006 and (ii) Borrower shall provide copies of any new agreements in respect of Non-Recourse Debt identified in such amended Schedule 4.01(y) to the
Administrative Agent promptly following any request by the Administrative Agent therefor and (b) waive (i) compliance with all contrary provisions of the Credit Agreement solely to the extent necessary to effect such amendments set forth
in clause (a) above, and (ii) any Default or Event of Default that would occur under the Credit Agreement in the absence of the amendments set forth in clause (a) above and the waiver set forth in clause (b)(i) above. 
 Borrower and Parent represent and warrant that, following the effectiveness of this Agreement, the release of the Hollywood Asset as a Borrowing Base
Asset will not otherwise result in a default under Section 5.04 of the Credit Agreement or any other provision of the Credit Agreement. Borrower and Parent further represent and warrant that the factual matters described herein are true and
correct in all material respects as of the date hereof. 
  

 2 

 The waivers, agreements and amendments set forth herein shall be limited precisely as written, and
nothing in this Agreement shall be deemed to (x) constitute (i) a waiver of any other Default or Event of Default or (ii) a waiver or amendment of any other term, provision or condition of the Credit Agreement, any of the other Loan
Documents or any other instrument or agreement referred to therein, or (y) except as set forth herein, prejudice any right or remedy that Agent or any Lender Party may now have or may have in the future under or in connection with the Credit
Agreement, the other Loan Documents or any other instrument or agreement referred to in any of them or in equity or at law. 
 This Agreement
shall become effective as of the date first above written when, and only when, Agent shall have received (i) counterparts of this Agreement executed by Borrower, Parent, Agent and the Required Lenders or, as to any of the Lenders, advice
satisfactory to Agent that such Lender has executed this Agreement, and (ii) the Consent attached hereto executed by each Guarantor. 
 Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses of Agent in connection with the preparation, execution, delivery and administration, modification and amendment of this Agreement and any instruments and
documents to be delivered hereunder (including, without limitation, the reasonable fees and expenses of counsel for Agent) in accordance with the terms of Section 9.04 of the Credit Agreement. 
 On and after the effectiveness of this Agreement, each reference in the Credit Agreement to “this Agreement”, “hereunder”,
“hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the
Credit Agreement, shall mean and be a reference to the Credit Agreement, as amended by this Agreement. 
 The Credit Agreement (as modified
to the extent specifically provided above), the Notes and each of the other Loan Documents, except to the extent of the limited waivers specifically provided above, are and shall continue to be in full force and effect and are hereby in all respects
ratified and confirmed. The execution, delivery and effectiveness of this Agreement shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or of Agent under the Credit Agreement or any of the
Loan Documents, nor constitute a waiver of any provision of the Credit Agreement or any of the Loan Documents. This Agreement shall constitute a Loan Document. 
 If you agree to the terms and provisions hereof, please evidence such agreement by executing and returning a counterpart of this Agreement to Malcolm K. Montgomery of Shearman & Sterling LLP by facsimile
(646-848-7587), with four duplicate originals by overnight courier. 
 [Balance of page intentionally left blank.] 

 

 3 

 This Agreement may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier shall
be effective as delivery of a manually executed counterpart of this Agreement. 
 This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York. 
  

			
	Very truly yours,
	
	SUNSTONE HOTEL PARTNERSHIP, LLC
		
	By	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

  

			
	SUNSTONE HOTEL INVESTORS, INC.
		
	By	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice
President

 (Signatures continued on next page) 
  

 S-1 

			
	Agreed as of the date first above written:
	
	 CITICORP NORTH AMERICA, INC.,
 as
Administrative Agent and Collateral Agent and as a Lender

		
	By	 	 /s/ Jeanne M. Craig

		 	 Name: Jeanne M. Craig
 Title: Vice
President

  

			
	 MERRILL LYNCH CAPITAL CORPORATION,
 as a Lender

		
	By	 	 /s/ John C. Rowland

		 	 Name: John C. Rowland
 Title: Vice
President

  

			
	 MORGAN STANLEY SENIOR FUNDING, INC.
 as a Lender

		
	By	 	 /s/ Eugene F. Martin

		 	 Name: Eugene F. Martin
 Title: Vice
President

  

			
	 BARCLAYS BANK PLC
 as a
Lender

		
	By	 	 /s/ Haejin Baek

		 	 Name: Haejin Baek
 Title: Vice
President

  

			
	 CALYON NEW YORK BRANCH
 as a Lender

		
	By	 	  
		 	 Name:
 Title:

		
	By	 	  
		 	 Name:
 Title:

 [Signatures continued on next page] 
  

 S-2 

					
	 GRAYSON & CO. 
 as a Lender

		
	By:	 	 BOSTON MANAGEMENT AND RESEARCH,
 as
investment advisor

			
		 	By:	 	 /s/ Michael B. Botthof

		 		 	 Name: Michael B. Botthof
 Title: Vice
President

  

			
	 DEUTSCHE BANK TRUST COMPANY AMERICAS
 as a Lender

		
	By	 	 /s/ Brenda Casey

		 	 Name: Brenda Casey
 Title:
Director

		
	By	 	 /s/ Joanna Soliman

		 	 Name: Joanna Soliman
 Title: Vice
President

  

			
	 BEAR STEARNS CORPORATE LENDING INC.
 as a Lender

		
	By	 	  
		 	 Name:
 Title:

  

			
	 UBS LOAN FINANCE LLC, 
 as a
Lender

		
	By	 	  
		 	 Name:
 Title:

		
	By	 	  
		 	 Name:
 Title:

  

			
	 SENIOR DEBT PORTFOLIO (FORMERLY KNOWN AS EATON VANCE PRIME FUND, INC.)
 as a Lender

		
	 By:
	 	 BOSTON MANAGEMENT AND RESEARCH
 as Investment
Advisor

		
	By	 	 /s/ Michael B. Botthoff

		 	 Name: Michael B. Botthoff
 Title: Vice
President

  

 S-3 

 CONSENT 
 Dated as of March 3, 2006 
 Each of the undersigned, as Guarantor under the Guaranty set forth in Article
VII of the Revolving Credit Agreement dated as of October 26, 2004, in favor of Agent and the other Secured Parties identified in the Credit Agreement referred to in the foregoing Limited Waiver and Amendment (the
“Guaranty”), hereby consents to such Limited Waiver and Amendment and hereby confirms and agrees that notwithstanding the effectiveness of such Limited Waiver and Amendment, the Guaranty is, and shall continue to be, in full
force and effect and is hereby ratified and confirmed in all respects. 
  

			
	BUY EFFICIENT, L.L.C.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	ROCHESTER BEVFLOW, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	ROCHESTER RIBM LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	RTS LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	SHP DT BEVFLOW, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

 [Signatures continued on next page] 
  

 C-1 

			
	SUNSTONE HOTEL TRS LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	 SUNSTONE HOTELS, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	 SUNSTONE NAPA MERLOT LESSEE, INC.

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	SUNSTONE NAPA, L.L.C.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	SUNSTONE HOTELS ROCHESTER, L.L.C.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	SUNSTONE OUTPARCEL, L.L.C.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

 [Signatures continued on next page] 
  

 C-2 

			
	 SUNSTONE PLEDGECO, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	SUNSTONE ROCHESTER OUTPARCEL, L.L.C.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	SUNSTONE WINDY HILL, L.L.C.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	SUNSTONE WINDY HILLS LESSEE, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	 TTS FACILITIES, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	WB SUNSTONE-BOISE, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	 WB SUNSTONE-BOISE, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

 [Signatures continued on next page] 
  

 C-3 

			
	 SUNSTONE JAMBOREE, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	 SUNSTONE JAMBOREE LESSEE, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	WB SUNSTONE-LAKE OSWEGO, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	 WB SUNSTONE-LAKE OSWEGO, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	WB SUNSTONE-PORTLAND, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	 WB SUNSTONE-PORTLAND, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	WB SUNSTONE-RIVERSIDE, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

 [Signatures continued on next page] 
  

 C-4 

			
	 WB SUNSTONE-RIVERSIDE, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	WESTBROOK HOTEL CO-INVESTMENT PARTNERS IV, L.L.C.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	WESTBROOK HOTEL PARTNERS IV, L.L.C.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	 WHP BEVFLOW, LLC

		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	WHP TEXAS BEVERAGE-1, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

			
	WHP TEXAS BEVERAGE-2, INC.
		
	By:	 	 /s/ Jon D. Kline

		 	 Name: Jon D. Kline
 Title: Vice President

  

 C-5

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