Document:

Registration Rights Agreement

 Exhibit 10.23 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), is made and entered into as of June 28, 2005, between Sunstone Hotel Investors,
Inc., a Maryland corporation (the “Company”) and Security Capital Preferred Growth Incorporated, a Maryland corporation (together with its successors and assigns, the “Investor”). 
  
 WHEREAS, the Company, Sunstone Hotel Partnership, LLC (the “Operating
Partnership”) and the Investor have entered into the Series C Cumulative Convertible Redeemable Preferred Stock Purchase Agreement, dated as of April 27, 2005, pursuant to which the Investor agreed to purchase shares of Series C Cumulative
Convertible Redeemable Preferred Stock (the “Series C Preferred Stock”) of the Company (the “Purchase Agreement”); 
  
 WHEREAS, the Company, the Operating Partnership and the Investor have entered into Amendment No. 1 to the Purchase Agreement and Common Stock Purchase
Agreement dated as of the date hereof pursuant to which the Investor has agreed to purchase shares of common stock, par value $.01 per share, (“Common Stock”) of the Company (“Amendment No. 1”); 
  
 WHEREAS, the Company desires to provide the Investor with certain
registration rights with respect to the Series C Preferred Stock, the common stock of the Company into which it may be converted and the Common Stock purchased, or to be purchased, pursuant to the Purchase Agreement and Amendment No.1. 

 
 NOW, THEREFORE, in consideration of the foregoing, the parties hereto
agree as follows: 
  

	1.	DEFINITIONS. 

  
 As used in this Agreement, the following terms shall have the following respective meanings: 
  
 “Affiliate”: with regard to a Person, a Person that controls, is controlled by, or is under common control
with, such original Person. For purposes of this definition, “control” when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise; and the terms “affiliated,” “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Closing Price”: the reported last sale price of the Company’s common stock on the New York Stock
Exchange Composite Tape. 
  
 “Commission”: the
Securities and Exchange Commission or any other applicable Federal agency at the time administering the Securities Act. 
  
 “Company”: as defined in the preamble, and shall include, where the context requires any Person into which the Company is merged or with
which the Company is consolidated. 

 “Demand Registration”: an effective registration pursuant to a request made by the
Investor pursuant to Section 2.1. 
  
 “Exchange
Act”: the Securities Exchange Act of 1934, as amended. 
  
 “Overhang Risk”: a substantial risk that the sale of some or all of the Shares sought to be sold will substantially reduce the proceeds or price per Share to be derived from the sale. 
  
 “Person”: an individual, partnership, corporation, company
(including a limited liability company), trust or unincorporated organization, or a government or agency or political subdivision thereof. 
  
 “Resale Rules”: as defined in Section 3.3. 
  
 “Securities Act”: the Securities Act of 1933, as amended. 
  
 “Shares”: the shares of Series C Preferred Stock, the common stock of the Company into which it may be
converted and the Common Stock purchased, or to be purchased, by the Investor pursuant to Purchase Agreement and Amendment No.1, and any other securities that subsequently may be issued or issuable by the Company pursuant to the Purchase Agreement
or as a result of a stock split or dividend or other similar transaction involving the Shares and any securities into which the Shares may thereafter be changed or exchanged as a result of the reincorporation of the Company or merger, consolidation,
recapitalization or other similar transaction. 
  
 “Shelf
Registration”: an effective registration under Rule 415 of the Securities Act pursuant to Section 2.2. 
  
 “Violation”: as defined in Section 3.2(a). 
  

	2.	REGISTRATION RIGHTS. 

  
 2.1 Demand Registration. During the period from and after the date the Company is required to file a registration statement pursuant to Section 2.2
below, if the Company is not eligible to file a registration statement to register the resale of the Investor’s shares pursuant to Rule 415 under the Securities Act or has not filed the shelf registration statement pursuant to Section 2.2 of
this Agreement, the Investor may request the Company to file a registration statement to register the resale of some or all of the Investor’s Shares, which registration statement will contemplate the ability of the Investor to do an
underwritten offering. The Investor shall be entitled to one Demand Registration plus one additional Demand Registration for each class of equity security the Investor purchases pursuant to Section 6.7 of the Purchase Agreement. The Company’s
obligations in this Section 2.1 are subject to Section 2.3. 
  
 2.2 Shelf Registration. Promptly after the later of October 26, 2005 and the date on which the Shares are first issued under the Purchase Agreement, but in no event later than 30 days after the later of such dates, the Company shall
file a registration statement to register the resale of the Investor’s Shares pursuant to Rule 415 under the Securities Act. If the Company shall issue additional Shares to the Company pursuant to the Purchase Agreement or otherwise, 

  

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within the later of 30 days after the date of such issuance or October 26, 2005, the Company shall file an additional registration statement to register the
resale of such additional Shares pursuant to Rule 415 under the Securities Act. Following the effectiveness of a registration statement, the Investor shall be entitled, upon at least 30 days’ (in the case of an underwritten offering) or 2
business days’ (in all other cases) prior written notice to the Company, to sell such number of Shares as are then registered pursuant to such registration statement. The Investor shall also give the Company prompt written notice of the
consummation of such sale. The Company’s obligation to maintain the effectiveness of such registration statement shall terminate at such time as the Investor’s Shares are freely tradeable pursuant to the Resale Rules. The Company’s
obligations in this Section 2.2 are subject to Section 2.3. 
  
 2.3 Company’s Ability to Postpone. The Company shall have the right to postpone the filing or effectiveness of a registration statement under Section 2.1 and 2.2 and each proposed sale of Shares by the Investor under an
effective registration statement, for a reasonable period of time (not exceeding 90 days) (the “Blackout Period”) if the Company furnishes the Investor with a certificate signed by the Chief Executive Officer of the Company stating that
the Company’s board of directors (not including directors affiliated with the Investor, if any), in its good faith judgment, has determined that effecting the registration or sale at such time would adversely affect a material financing,
acquisition, disposition of assets or stock, merger or other comparable transaction or would require the Company to make public disclosure of information the public disclosure of which would have a material adverse effect upon the Company;
provided, however, that notwithstanding anything herein to the contrary, the Company shall only be entitled to exercise its rights under this Section 2.4 on one occasion during any 9-month period; provided further,
however, that during any such Blackout Period, the Company shall also delay the filing or effectiveness of any registration statement with respect to any securities of the Company or any other stockholders of the Company. 
  
 2.4 Registration Procedures. If and whenever the Company is required
by any of the provisions of this Article 2 to effect the registration of any of the Shares under the Securities Act, the Company shall use its best efforts to effect the registration and the sale of such Shares in accordance with the intended method
of disposition thereof, and pursuant thereto the Company shall as expeditiously as possible: 
  
 (a) prepare and, in the case of a Demand Registration, no later than 45 days after a request for a Demand Registration, file with the
Commission a registration statement with respect to such Shares and use its reasonable efforts to cause such registration statement to become effective and remain effective for as long as shall be necessary to complete the distribution of the Shares
so registered; provided, that before filing a registration statement or prospectus or any amendments or supplements thereto, the Company shall furnish to the counsel selected by the Stockholder copies of all such documents proposed to be
filed, to the extent specifically requested by such counsel, including documents that are to be incorporated by reference into the registration statement, amendment or supplement, which documents shall be subject to the review and reasonable comment
of such counsel; 
  
 (b) notify the Investor when
a Registration Statement has been filed and when it has become effective; 
  

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 (c) prepare and file with the Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective and to comply with the provisions of the Securities Act with respect to the sale or other disposition of all
Shares covered by such registration statement whenever the Investor shall desire to sell or otherwise dispose of the same; 
  
 (d) furnish to the Investor such numbers of copies of the registration statement, each amendment or supplement thereto, a summary
prospectus or other prospectus, including a preliminary prospectus or any amendment or supplement to any prospectus, in conformity with the requirements of the Securities Act, and such other documents, as the Investor may reasonably request, in
order to facilitate the public sale or other disposition of the Shares covered by such registration statement; 
  
 (e) use its reasonable efforts to register and qualify the Shares covered by such registration statement under such other securities or
blue sky laws of such jurisdictions as the Investor shall reasonably request, and do any and all other acts and things reasonably requested by the Investor to assist it to consummate the public sale or other disposition in such jurisdictions of the
Shares owned by the Investor, except that the Company shall not for any such purpose be required to qualify to do business as a foreign corporation in any jurisdiction wherein it is not so qualified or to file therein any general consent to service
of process; 
  
 (f) otherwise use its reasonable
efforts to comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve months, beginning with the
first fiscal quarter beginning after the effective date of the registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act; 
  
 (g) use its reasonable efforts to list such Shares on any securities exchange or interdealer quotation
system on which the shares of common stock of the Company are then listed, if the listing or quotation of such Shares is then permitted under the rules of such exchange or interdealer quotation system; 
  
 (h) if the Investor intends to dispose of their Shares
through an underwritten public offering, enter into and perform its obligations under an underwriting agreement, in customary and usual form, with the managing underwriter of such underwritten offering, including, without limitation, to obtain an
opinion of counsel to the Company and a “comfort letter” from the independent public accountants to the Company in the usual and customary form for such underwritten offering; 
  
 (i) upon receipt of written notice, pursuant to Section 2.2 hereof, from the Investor of its intention to
sell Shares, notify the Investor of the happening of any event of which it has knowledge as a result of which the prospectus included in the registration statement, as then in effect, contains an untrue statement of a material fact or omits to state
a material fact required to be stated therein or necessary to make the statements 

  

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therein not misleading in the light of the circumstances then existing, and, at the request of the Investor (subject to the Company’s ability to
postpone such filing pursuant to Section 2.3 hereof), the Company shall prepare a supplement or amendment to the prospectus so that, as thereafter delivered to the purchasers of such Shares, such prospectus shall not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; provided, that the Investor shall refrain from selling
any Shares until such supplement or amendment to the prospectus has been filed; 
  
 (j) make every reasonable effort to prevent the entry of any order suspending the effectiveness of the registration statement and, in the
event of the issuance of any such stop order, or of any order suspending or preventing the use of any related prospectus or suspending the qualification of any security included in such registration statement for sale in any jurisdiction, the
Company shall use its best efforts promptly to obtain the withdrawal of such order; 
  
 (k) make the Company’s executive officers available for presentations to investors to discuss the affairs of the Company at times
that may be mutually and reasonably agreed upon (including, without limitation, to the extent customary, senior management attendance at due diligence meetings with the underwriters and their counsel and road shows); and provide the Investor, the
underwriter and their respective counsel and accountants such access to its books and records, all as shall be necessary to conduct a reasonable investigation within the meaning of the Securities Act; and 
  
 (l) upon the request of the Investor, take any and all other
actions which may be reasonably necessary to complete the registration and thereafter to complete the distribution of the Shares so registered. 
  
 2.5 Underwritten Offering. 
  
 (a) If the proposed sale by the Investor in a Demand Registration or Shelf Registration is an underwritten offering, the Investor shall
(together with the Company as provided in Section 2.4(g)), enter into an underwriting agreement in customary and usual form with the managing underwriter selected for such underwriting by the Investor. The Investor hereby agrees that it may not
participate in any underwritten offering hereunder unless it (i) agrees to sell its Shares on the basis provided in the underwriting agreement and (ii) completes and executes all questionnaires, powers of attorney and other documents reasonably
required under the terms of the underwriting agreement or by the Company. 
  
 (b) If the managing underwriter in an underwritten offering advises that the number of Shares sought to be included in such offering would create an Overhang Risk, then the number of Shares to be sold by the Investor
participating in such offering shall be reduced to the number of Shares recommended by the managing underwriter on a pro rata basis with other shareholders entitled to participate in such offering. 
  

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 (c) The Investor may not make more than one underwritten offering whether pursuant to a
Demand Registration or Shelf Registration. For this purpose, “underwritten offerings” do not include block purchases from the Investor by brokers or dealers without any marketing efforts by the Company or the Investor. 
  

	3.	PROVISIONS APPLICABLE TO REGISTRATION RIGHTS. 

  
 3.1 Expenses. 
  
 (a) Except as set forth in Section 3.1(b), the expenses specified in the following sentence incurred in any Shelf Registration or Demand
Registration (or any attempted Shelf Registration or Demand Registration that is not consummated) of the Investor’s Shares under this Agreement shall be paid by the Investor. The expenses referred to in the preceding sentence shall be limited
to underwriters’ discounts or commissions or fees or fees of placement agents and fees and disbursements of counsel for the Investor. 
  
 (b) All other expenses incurred in any Shelf Registration or Demand Registration (or any attempted Shelf Registration or Demand
Registration that is not consummated) shall be paid by the Company, including, without limitation, (i) the expenses of its counsel, including fees and expenses related to the preparation, printing and distribution of the registration statement and
the prospectus used in connection therewith and any amendment or supplement thereto, (ii) any necessary accounting expenses, including any special audits which shall be necessary to comply with governmental requirements in connection with any such
registration, including the expense related to any comfort letters and (iii) expenses of complying with the securities or blue sky laws of any jurisdictions. 
  
 3.2 Indemnification. In the event the Investor’s Shares are included in a registration statement under Article 2: 
  
 (a) Indemnity by Company. Without limitation of any
other indemnity provided to the Investor, to the extent permitted by law, the Company will indemnify and hold harmless the Investor, the Affiliates, officers, directors and partners of the Investor, each underwriter (as defined in the Securities
Act), and each Person, if any, who controls the Investor or an underwriter (within the meaning of the Securities Act), against any losses, claims, damages, liabilities and expenses (joint or several) to which they may become subject under the
Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, liabilities and expenses (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations
(collectively a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statements (including any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto), (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading, or (iii) any other violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state 

  

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securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law, and the Company will reimburse
the Investor and its Affiliates, officers, directors or partners, underwriter and controlling person for any reasonable legal or other expenses incurred by them in connection with investigating or defending any such loss, claim, damage, liability,
expense or action; provided, however, that the Company shall not be liable to the Investor in any such case for any such loss, claim, damage, liability, expense or action to the extent that it arises out of or is based upon a Violation
which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by the Investor or any Affiliate, officer, director, partner or controlling person thereof as provided in
section 3.2(b) below; 
  
 (b) Indemnity by the
Investor. In connection with any registration statement in which the Investor is participating, the Investor will furnish to the Company in writing such reasonably necessary information as the Company reasonably requests for use in connection
with any such registration statement or prospectus and, to the extent permitted by law, will indemnify the Company, its directors and officers and each Person who controls the Company (within the meaning of the Securities Act or Exchange Act)
against any losses, claims, damages, liabilities and expenses resulting from any Violation, but only to the extent that such Violation is contained in any information furnished in writing to the Company by the Investor stated to be specifically for
use in such registration statement or prospectus (the furnishing of such reasonably necessary information by the Investor being a condition precedent to the Company’s obligation to cause the registration statement to become effective);
provided, that the obligation to indemnify will be several and not joint with any other Person and will be limited to the net amount received by the Investor from the sale of Shares, pursuant to such registration statement. 
  
 (c) Notice; Right to Defend. Promptly after receipt
by an indemnified party under this Section 3.2 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this
Section 3.2, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, if the indemnifying party agrees in writing that it will be responsible for any
costs, expenses, judgments, damages and losses incurred by the indemnified party with respect to such claim, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the
parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if the indemnified party reasonably believes that representation of
such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The
failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to the indemnified party under this Section 3.2 only if and to the
extent that such failure is prejudicial to its ability to defend such action, and the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party other than under
this Section 3.2. 
  

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 (d) Contribution. If the indemnification provided for in this Section 3.2 is held
by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party thereunder,
shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and
of the indemnified party on the other hand in connection with the statements or omissions which resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations. The relative fault of the indemnifying
party and the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying
party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. Notwithstanding the foregoing, the amount an Investor shall be obligated to
contribute pursuant to this Section 3.2(d) shall be limited to an amount equal to the proceeds to the Investor of the Shares sold pursuant to the registration statement which gives rise to such obligation to contribute (less the aggregate amount of
any damages which the Investor has otherwise been required to pay in respect of such loss, claim, damage, liability or action or any substantially similar loss, claim, damage, liability or action arising from the sale of such Shares). 
  
 (e) Survival of Indemnity. The indemnification
provided by this Section 3.2 shall be a continuing right to indemnification and shall survive the registration and sale of any securities by any Person entitled to indemnification hereunder and the expiration or termination of this Agreement.

  
 3.3 Rule 144. In order to permit the Investor to sell
the Shares it holds, if it so desires, from time to time pursuant to Rule 144 promulgated by the Commission or any successor to such rule or any other rule or regulation of the Commission that may at any time permit the Investor to sell its Shares
to the public without registration (“Resale Rules”), the Company will: 
  
 (a) comply with all rules and regulations of the Commission applicable in connection with use of the Resale Rules; 
  
 (b) make and keep adequate and current public information
available, as those terms are understood and defined in the Resale Rules, at all times; 
  
 (c) file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the
Exchange Act; 
  
 (d) furnish to the Investor so
long as it owns any Shares, forthwith upon request (i) a written statement by the Company that it has complied with the reporting 

  

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requirements of the Resale Rules, the Securities Act and the Exchange Act, (ii) a copy of the most recent annual or quarterly report of the Company and any
other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing an Investor of any rule or regulation of the Commission which permits the selling of any such Shares without
registration; and 
  
 (e) take any action
(including cooperating with the Investor to cause the transfer agent to remove any restrictive legend on certificates evidencing the Shares) as shall be reasonably requested by the Investor or which shall otherwise facilitate the sale of Shares from
time to time by the Investor pursuant to the Resale Rules. 
  
 3.4
Investor Status and Responsibilities. The Investor acknowledges the limitations that may be imposed upon the Investor under Section 10 of the Exchange Act and the rules and regulations thereunder in connection with the Investor’s sale or
transfer of Shares and agrees to sell or transfer any such Shares only subject to any such applicable limitations. 
  
 3.5 Piggyback Registration Rights. If the Company proposes to make an underwritten offering of its common stock or of other classes of securities
held by the Investor or if another holder of Shares proposes to make an underwritten offering, the Investor shall be entitled to sell Shares in such offering subject to compliance with Sections 2.5(a) and (b); provided, however, that
if the managing underwriter advises that the number of Shares sought to be included by the Investor in such offering would create an Overhang Risk, the number of Shares to be sold by the Investor will be reduced on a pro rata basis with other
shareholders entitled to participate in such offering to the extent not inconsistent with existing contractual obligations. The Investor may not include Shares in underwritten offerings pursuant to this Section 3.5 if the Investor owns Shares
representing less than 1% of the outstanding shares of Common Stock of the Company. The Company may grant other holders of its shares of common stock the right to include any or all of such holders’ shares in any registration statement filed on
behalf of the Investor, subject in the case of an underwritten offering to there not being an Overhang Risk. The Investor hereby expressly acknowledges that the Company has granted certain registration rights pursuant to the Registration Rights
Agreement, dated as of October 26, 2004, among the Company, Sunstone Hotel Investors, L.L.C., Sunstone/WB Hotel Investors IV, LLC, WB Hotel Investors, LLC and Sunstone/WB Manhattan Beach, LLC (the “Westbrook Registration Rights Agreement”)
and pursuant to the Registration Rights Agreement, dated as of the date hereof between the Company and BIP REIT Private, Ltd. (the BIP REIT Registration Rights Agreement”) and that the Company may use the same registration statement to satisfy
its obligations under the Westbrook Registration Rights Agreement, the BIP REIT Registration Rights Agreement and this Agreement. 
  

	4.	MISCELLANEOUS. 

  
 4.1 Amendment; Termination. This Agreement may be amended, modified or supplemented but only in writing signed by each of the parties hereto. This
Agreement shall terminate when the Investor no longer owns any Shares. 
  
 4.2 Notices. Any notice, request, instruction or other document to be given hereunder by a party hereto shall be in writing and shall be deemed to have been given, (a) when received if 

  

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given in person or by courier or a courier service, (b) on the date of transmission if sent by facsimile or email (which is confirmed) or (c) three business
days after being deposited in the U.S. mail, certified or registered mail, postage prepaid: 
  
 If to the Company, addressed as follows: 
  
 903 Calle Amanecer, Suite 100 
 San Clemente, California 92673 
 Attention: Jon D. Kline 
 Facsimile No.: (949)
369-3179 
 Email: jkline@sunstonehotels.com 
  
 with a copy to: 
  
 Sullivan & Cromwell LLP 
 1888 Century
Park East 
 Los Angeles, California 90067 
 Attention: Alison S. Ressler or Steven B. Stokdyk 
 Facsimile No.: (310) 712-8800 
 Email: resslera@sullcrom.com or stokdyks@sullcrom.com 
  
 If to the Investor, addressed as follows: 
  
 Security Capital Preferred Growth Incorporated 
 1 Bank One Plaza 
 10 S. Dearborn St., Suite 1400 
 Chicago, Illinois 60603 
 Attention: David E. Rosenbaum 
 Facsimile No.: 312-385-8333 
 Email:
drosenbaum@securitycapital.com 
  
 with a copy to: 
  
 Mayer, Brown, Rowe & Maw LLP 
 190 South LaSalle Street 
 Chicago, Illinois
60603 
 Attention: Edward J. Schneidman 
 Facsimile No.: (312) 701-7711 
 Email: eschneidman@mayerbrownrowe.com 
  
 or to such other individual or address as a party hereto may designate for itself by notice given as herein provided. 
  
 4.3 Waivers. The failure of a party hereto at any time or times to
require performance of any provision hereof shall in no manner affect its right at a later time to enforce the same. No waiver by a party of any condition or of any breach of any term, covenant, representation or warranty contained in this Agreement
shall be effective unless in writing, and no waiver in any one or more instances shall be deemed to be a further or continuing waiver of any such condition 

  

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or breach in other instances or a waiver of any other condition or breach of any other term, covenant, representation or warranty. 
  
 4.4 Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 4.5 Interpretation. The headings preceding the text of Articles and Sections included in this Agreement are for convenience only and shall not be
deemed part of this Agreement or be given any effect in interpreting this Agreement. The use of the masculine, feminine or neuter gender herein shall not limit any provision of this Agreement. The use of the terms “including” or
“include” shall in all cases herein mean “including, without limitation” or “include, without limitation,” respectively. Underscored references to Articles, Sections or Subsections shall refer to those portions of this
Agreement. 
  
 4.6 Governing Law. THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAWS PRINCIPLES. 
  
 4.7 Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. In
the event that any transferee of the Investor shall acquire Shares in any manner, whether by gift, bequest, purchase, operation of law or otherwise, such transferee shall, without any further writing or action of any kind, be entitled to receive the
benefits of and, if applicable, be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this Agreement. 
  
 4.8 Severability. If any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality or enforceability of
the other provisions hereof shall not be affected thereby, and there shall be deemed substituted for the provision at issue a valid, legal and enforceable provision as similar as possible to the provision at issue. 
  
 4.9 Entire Understanding. This Agreement sets forth the entire
agreement and understanding of the parties hereto with respect to the matters set forth herein and supersedes any and all prior agreements, arrangements and understandings among the parties. 
  
 4.10 Specific Performance. Each of the parties acknowledges that the
obligations undertaken by it pursuant to this Agreement are unique and that the other parties will not have an adequate remedy at law if it shall fail to perform any of its obligations hereunder, and each party therefore confirms that the right of
each other party hereto to specific performance of the terms of this Agreement is essential to protect the rights and interests of such parties. Accordingly, in addition to any other remedies that the parties may have at law or in equity, each party
shall have the right to have all obligations, covenants, agreements and other provisions of this Agreement specifically performed by each other party, and shall have the right to obtain preliminary and permanent injunctive relief to secure specific
performance and to prevent a breach or contemplated breach of this Agreement by each other party. 
  
 4.11 Reorganization. In connection with any merger, consolidation, sale of all or substantially all of the Company’s assets, the Company will
use its best efforts to take such actions, or to cause the other party to such transaction to take such actions, to ensure that the parties hereto have, immediately after consummation of such transaction, substantially the same rights in respect of
such other Person or the Company, as applicable, as they may have immediately prior to consummation of such transaction in respect of the Company under this Agreement. 
  
 *    *    *    *    * 
  

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 IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date and year first above
written. 
  

					
	 SUNSTONE HOTEL INVESTORS, INC.

			
	By:	 	 	 	/s/    JON D. KLINE        
	 	 	 Name:
	 	Jon D. Kline
	 	 	 Title:
	 	Executive Vice President
	
	SECURITY CAPITAL PREFERRED GROWTH INCORPORATED
			
	By:	 	 	 	/s/    CAROLINE M.
STEIMLE        
	 	 	 Name:
	 	Caroline M. Steimle
	 	 	 Title:
	 	Vice President

  
 [Signature Page
to Registration Rights Agreement]Purchase and Sale Agreement

 Exhibit 10.24 
  
 PURCHASE AND SALE AGREEMENT 
  

by 
  
 and 
  
 between 
  
 PIVOTAL CENTURY PLAZA HOTEL, L.L.C.,

 a Delaware limited liability company 
  
 “Seller” 
  
 and 
  
 HYATT DEVELOPMENT CORPORATION, 
 a Delaware corporation 
  
 “Purchaser” 
  
 The Century Plaza Hotel & Spa 
 Los Angeles, California 
  
 August 24, 2005 

  
 TABLE OF CONTENTS

  

					
	1.	  	DEFINITIONS	  	1
			
	2.	  	AGREEMENT OF PURCHASE AND SALE	  	14
			
	3.	  	PURCHASE PRICE	  	14
			
	4.	  	TITLE	  	16
			
	5.	  	DUE DILIGENCE	  	17
			
	6.	  	CLOSING	  	21
			
	7.	  	CLOSING COSTS	  	22
			
	8.	  	CONDITIONS PRECEDENT TO CLOSING	  	23
			
	9.	  	SELLER’S CLOSING DOCUMENTS	  	25
			
	10.	  	PURCHASER’S CLOSING DOCUMENTS	  	26
			
	11.	  	PRORATIONS, CLOSING ADJUSTMENTS & EMPLOYEES	  	27
			
	12	  	SELLER’S REPRESENTATIONS AND WARRANTIES	  	37
			
	13.	  	PURCHASER’S REPRESENTATIONS AND WARRANTIES	  	47
			
	14.	  	CONDUCT OF HOTEL BUSINESS PRIOR TO CLOSING	  	47
			
	15.	  	ESCROW	  	50
			
	16.	  	LIQUOR MATTERS	  	51
			
	17.	  	LOSS BY FIRE, OTHER CASUALTY OR CONDEMNATION	  	54
			
	18.	  	DEFAULT	  	56
			
	19.	  	BROKERS	  	59
			
	20.	  	MISCELLANEOUS	  	59

  
 Purchase and Sale
Agreement 
  
 EXHIBIT AND SCHEDULE LIST 
  

			
	 Exhibit

	  	 Description

	A	  	Legal Description of the Land
		
	B	  	Due Diligence Materials
		
	C	  	Form of Grant Deed
		
	D	  	Form of Bill of Sale
		
	E	  	Form of Assignment and Assumption Agreement
		
	F	  	Form of Assignment and Assumption of Trip Count Agreement
		
	G	  	Form of Resale Certificate
		
	H	  	Disclosure Statement
		
	I	  	Estoppel Certificates
		
	J	  	Title Exceptions on Schedule B to PTR
		
	1	  	Schedule of Equipment Leases
		
	2	  	Schedule of Leases
		
	3	  	Schedule of Service Contracts
		
	4	  	Schedule of Union Contracts
		
	5	  	Schedule of Property Analyses, Property Condition and Environmental Reports
		
	6	  	Schedule of Licenses and Permits
		
	7	  	Intentionally Deleted
		
	8	  	Schedule of Work in Progress
		
	9	  	Schedule of Liquor Licenses
		
	10	  	Schedule of Gift Certificates
		
	11	  	Schedule of Insurance

 PURCHASE AND SALE AGREEMENT 
  
 This PURCHASE AND SALE AGREEMENT (this “Agreement”) is entered into as of August 24, 2005, by and between
PIVOTAL CENTURY PLAZA HOTEL, L.L.C., a Delaware limited liability company, (“Seller”) and HYATT DEVELOPMENT CORPORATION, a Delaware corporation (“Purchaser”),with reference to the following Recitals: 
  
 RECITALS: 
  
 A. Seller is the owner of certain land in Los Angeles County, California
located at 2025 Avenue of the Stars, Los Angeles, and more particularly described in Exhibit A attached to this Agreement (the “Land”). The Land is improved with a hotel known as The Westin Century Plaza Hotel & Spa
containing approximately seven hundred twenty eight (728) guest rooms and suites, meeting, banquet, spa, restaurant, lounge, pool and other public areas (the “Hotel”). 
  
 B. Seller wishes to sell to Purchaser, and Purchaser wishes to purchase from Seller, the Hotel, and the personal property
and other rights and interests related thereto which, together, comprise the Property (as defined below), on the terms and subject to the conditions set forth in this Agreement. 
  
 AGREEMENT 
  
 NOW, THEREFORE, in consideration of the foregoing Recitals, the mutual agreements, covenants and promises set forth in this Agreement and for other good
and valuable consideration, the receipt, sufficiency and validity of which are hereby acknowledged, Seller and Purchaser agree as follows: 
  

	1.	DEFINITIONS . 

  
 (a) For purposes of this Agreement, the following terms shall have the meanings set forth below: 
  
 “Accountant” means Ernst & Young.

  
 “Accounts Payable” means all
accrued amounts owed by Seller (or by Hotel Operator as agent of Seller) as of the Proration Time and arising out of the ownership of the Property or operation of the Hotel, including the following: unpaid charges for utilities; amounts payable to
creditors from whom Inventory, FF&E, Expendables and other items have been purchased in connection with the ownership or operation of the Hotel, including amounts then owing under open purchase orders; and amounts payable with respect to the
Management Agreement, the Liquor Agreement, the 

 
Employee Agreement, the Union Contracts, the Service Contracts, the Parking Agreements, the Chilled Water Agreements (but only rights under such agreements
with respect to the Hotel retained under the Chilled Water Partial Assignment and not with respect to the Adjoining Project), the Equipment Leases, and any other Intangible Property, and with respect to maintenance, cleaning and other services
performed in connection with the operation of the Hotel other than pursuant to such agreements; provided, however, the term Accounts Payable shall not include Booking Deposits or Tenant Deposits. 
  
 “Accounts Receivable” means all accrued
amounts owed to Seller (or to Hotel Operator as agent of Seller) as of the Proration Time and arising out of the ownership or operation of the Hotel, whether or not past due and whether or not a bill or statement has been presented to the Person
owing such amount, including the following: lease rentals, percentage rentals, escalation rentals, operating cost pass-throughs and all other sums and charges payable by tenants under the Leases (except to the extent any of such items are prorated
in accordance with Section 11(e)); room, food and beverage charges (other than for alcoholic beverages); telephone or telecopy charges; valet charges; charges for other services or merchandise; charges for banquets, meeting rooms, catering
and the like; sales, use and occupancy taxes due from the consumers of goods and services; amounts owed to Seller pursuant to the Liquor Agreement; amounts owed from credit card companies pursuant to signed credit card receipts, whether or not such
credit card receipts have been delivered by Seller to the credit card companies; and deposits or prepayments made by or held for the account of Seller (including any utility deposits, any deposits under any Equipment Leases or Licenses and Permits
and any deposits or prepayments made by Hotel Operator for the account of Seller); provided, however, the term Accounts Receivable shall exclude any accounts receivable for which Seller receives a credit pursuant to Section 11(d)(i) with
respect to the night that straddles the Closing. 
  
 “Additional Rents” has the meaning given such term in Section 11(e)(ii). 
  
 “Adjoining Project” means that certain improved real property located at 2055 Avenue of the Stars, Los Angeles, and
formerly operated as the St. Regis Hotel, Los Angeles. 
  
 “Affiliate” shall mean a person or entity that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, an entity. For purposes of this definition,
“control” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting securities, by contract or otherwise.

  
 “Appurtenances” means all
rights, privileges, interests and easements owned by Seller and appurtenant to the Land, including any mineral rights relating to the Land and minerals, oil, gas and other hydrocarbon substances on or under the Land, 

  

 2 

 
water and water rights relating to the Land, the easements benefiting the Hotel created pursuant to the Declaration of Easements and all Surplus Trip Counts.

  
 “Bill of Sale” has the
meaning given such term in Section 9(b). 
  
 “Booking” means a booking, contract or other reservation for (A) the future use of guest rooms, banquet facilities, meeting rooms or other Hotel facilities and (B) off-site catering for which a Booking Deposit has been
received on behalf of Seller, or for which a written proposal has been made by or on behalf of Seller and accepted by the recipient of such proposal or for which a written proposal has been received and accepted by or on behalf of Seller (regardless
of whether a Booking Deposit has been received). 
  
 “Booking Deposit” means a room reservation, public function, banquet, or food and beverage deposit, or other deposit or fees for a Booking. 
  
 “Books and Records” means all books, records, financial statements and information,
correspondence and other files and information (whether stored in paper form, on computer hard drive or disk, CD Rom, DVD or in any other storage medium) owned by Seller or any Affiliate of Seller (whether in the possession or control of Seller or
such Affiliate or Hotel Operator as agent for Seller) which relate to the ownership of the Property or the operation of the Hotel, including employee files and records, guest history information for all individual and group accounts (subject to the
limitations described in Section 5(a) below) and records regarding technological systems of the Hotel, excluding, however, Seller’s limited liability company, partnership or corporate records, any internal appraisals or economic
evaluations of the Hotel prepared by or for the benefit of Seller, Seller’s accounting and income tax records and similar proprietary confidential, privileged or work product files or documents of Seller or Seller’s members. 
  
 “Business Day” has the meaning given such
term in Section 20(p). 
  
 “Cash on Hand” means all Hotel petty cash and cash in cash registers, house banks, vending machines, laundry machines, pay telephones and other cash-operated equipment as of the Proration Time (excepting any such cash not
owned by Seller or any Affiliate of Seller, e.g. cash in any bank or private ATM’s located at the Hotel). Amounts on deposit with a financial institution in Seller’s name (or in Hotel Operator’s name for the account of Seller) shall
not be considered Cash on Hand and such amounts shall remain the property of Seller. 
  
 “Chilled Water Agreements” means collectively (A) that certain Chilled Water, Heated Water and Steam Energy Agreement
dated as of December 27, 1979, by and between Century City, Inc. (a prior owner of the Property) and Central Plants, Inc., as 

  

 3 

 
modified by a letter agreement dated November 14, 1984, and (B) the Chilled Water Partial Assignment. 
  
 “Chilled Water Partial Assignment” means
that certain Partial Assignment of and Agreement Regarding Chilled Water Agreement dated as of January 25, 2005, by and between Seller and Avenue of the Stars Associates, LLC. 
  
 “Closing” and “Close” mean the consummation of the purchase and sale of
the Property in accordance with this Agreement as evidenced by the recordation of the Deed in the Official Records. 
  
 “Closing Date” means October 5, 2005, subject to any extension effected pursuant to the terms of Section 11(j)(2) or any
other express provision of this Agreement]. 
  
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any regulations, rulings, procedures and guidance issued by the Internal Revenue Service. 
  
 “Declaration of Easements” means that
certain Declaration of Easements identified as item 25 on Schedule B of the Preliminary Title Report. 
  
 “Deed” has the meaning given such term in Section 9(a). 
  
 “Department” has the meaning given such
term in Section 16(a). 
  
 “Deposit” has the meaning given such term in Section 3(a). 
  
 “Due Diligence Materials” refers to the documents, reports and materials relating to the Hotel described on Exhibit
B. 
  
 “Earthquake Escrow”
has the meaning given such term in Section 17(c). 
  
 “Earthquake Deposit” has the meaning given such term in Section 17(c). 
  
 “Earthquake-Related Damage” has the meaning given such term in Section 17(c). 
  
 “Employee Agreement” means that certain
agreement dated January 25, 1997, by and among Hotel Operator, Westin Los Angeles Payroll Company and Seller, as amended by that certain letter to Hotel Operator, WHC Payroll Company (successor in interest to Westin Los Angeles Payroll Company) and
Employee Company, dated as of January 25, 2005, as and to the extent relating to employment of the Hotel Employees. 
  

 4 

 “Employee Company” means Sheraton Operating Company (as successor to WHC
Payroll Company). 
  
 “Employee
Obligations” means obligations relating to, or arising with respect to, the Hotel Employees, including (i) wages, salaries, vacation and sick leave, fringe benefits and payroll taxes, (ii) worker’s compensation, employment
discrimination, sexual harassment and unfair labor claims, (iii) retirement benefits and employer contributions to pension plans, (iv) obligations under any of the Union Contracts or other agreement with unions representing the Hotel Employees, as
the case may be and as the context so requires, and (v) claims or penalties under applicable Legal Requirements governing employment matters. 
  
 “Environmental Laws” means all federal, state and local laws, ordinances and regulations governing the use, storage,
transportation or disposal of hazardous or toxic substances or materials in effect as of the date of this Agreement and applicable to the Property. 
  
 “Environmental Reports” has the meaning given such term in Section 12(a)(iv). 
  
 “Equipment Leases” means all leases, rental
or other agreements to which Seller (or Hotel Operator as agent for Seller) is a party for the use of any of the Expendables or FF&E, together with all supplements and amendments thereto, which leases and agreements are identified on Schedule
1 attached hereto. 
  
 “Estoppel
Certificate” has the meaning given such term in Section 8(a)(vi). 
  
 “Exchange Party” has the meaning given such term in Section 3(f). 
  
 “Excluded Claims” means (i) any claims now
or hereafter filed by Seller for refund or rebate with respect to the operation of the Hotel or the ownership of the Property for periods prior to the Closing Date (including claims for the refund or rebate of real property taxes and assessments for
periods prior to the Closing Date, subject to the prorations provisions of Section 11(b) below), and (ii) causes of action, claims and rights that Seller may have with respect to the period prior to the Closing Date for matters such as monetary
claims or claims for indemnification, defense or reimbursement against Hotel Operator, Employee Company, Liquor Concessionaire, the parties to the Parking Agreements, the Chilled Water Agreements, the Union Contracts, the Equipment Leases or the
Service Contracts, claims under any insurance policy maintained with respect to the Property (except claims under such insurance policies assigned to Purchaser pursuant to Section 17) and claims against former tenants or former occupants of
space in the Hotel for unpaid rent or other charges with respect to the period prior to the Closing Date. The Excluded Claims shall be retained by Seller. 
  

 5 

 “Expendables” means blankets, linens, tableware, china, glassware,
uniforms and other goods of an expendable nature which are located at the Hotel and owned or leased by Seller or any Affiliate of Seller (whether in the possession or control of Seller or such Affiliate or Hotel Operator as agent for Seller);
provided, however, the term Expendables shall not include FF&E, Inventory or Liquor Inventory. 
  
 “FF&E” means the furniture, furnishings, fixtures, machinery, equipment, tools, vehicles, appliances and artwork
located at the Hotel and owned or leased by Seller or any Affiliate of Seller (whether in the possession or control of Seller or such Affiliate or Hotel Operator as agent for Seller), including all furniture and furnishings for guest rooms, public
areas and non-public areas (such as kitchen, laundry and cleaning facilities, rooms for the use of employees, storage areas, front desk and administrative offices), floor and window coverings, decorative light fixtures and equipment;
provided, however, the term FF&E shall not include Expendables, Inventory or Liquor Inventory. 
  
 “General Assignment” has the meaning given such term in Section 9(c). 
  
 “Governmental Authorities” means all
federal, state, county, municipal and other local governmental authorities, and administrative, judicial and regulatory agencies thereof, having jurisdiction over the property or Person in question. 
  
 “Hotel” has the meaning given such term in
Recital A. 
  
 “Hotel
Employees” means all persons employed by Hotel Operator or Employee Company with respect to the Hotel pursuant to the Management Agreement and the Employee Agreement, respectively. 
  
 “Hotel Operator” means Westin North
American Management Company, a Delaware corporation, successor by merger to Westin Century City Management Co. 
  
 “Improvements” means the Hotel and all other buildings, structures, fixtures and improvements owned or leased by Seller
and located on the Land, and all apparatuses, equipment and appliances owned or leased by Seller and attached thereto, including curbs, landscaping and any underground utilities, elevators and escalators, heating and air conditioning systems, and
facilities used to provide utility services, refrigeration, ventilation, garbage disposal, recreation or other services for the Hotel. 
  
 “Intangible Property” means all of Seller’s interest in and to the following: Bookings and Booking Deposits, Leases
and Tenant Deposits, Equipment Leases, Service Contracts, Union Contracts, the Chilled Water Agreements (but only rights under such agreement with respect to the Hotel retained under the Chilled Water Partial Assignment and not with respect to the
Adjoining Project), the Parking Agreements, Names, IT Systems, warranties and guarantees relating to the Property, Licenses and 

  

 6 

 
Permits, plans and specifications for the Improvements, drawings, Books and Records, goodwill associated with the Hotel, and other items of intangible
personal property owned by Seller relating to the Hotel; provided, however, the term Intangible Property shall expressly exclude (i) any insurance policies relating to the Property in Seller’s name (which insurance policies will
not be assigned to Purchaser, other than with respect to insurance proceeds payable thereunder in the circumstances described in Section 17), (ii) any internal appraisals or economic evaluations of the Hotel prepared by or for the benefit of
Seller, (iii) the Excluded Claims, (iv) the Management Agreement, (v) the Employee Agreement, (vi) the Liquor Agreement, (vii) the Accounts Receivable, (viii) the Liquor Licenses, and (ix) the Liquor Inventory. 
  
 “Intervening Title Matters” has the meaning
given such term in Section 4(b). 
  
 “Inventory” means the stock in trade of the Hotel located at the Hotel and owned or leased by Seller or any Affiliate of Seller (whether in the possession or control of Seller or such Affiliate or Hotel Operator as agent
for Seller), including both (A) operating inventories and consumable inventories (including guest supplies, provisions, stores, food and non-alcoholic beverages, stationery, office supplies, operating supplies, fuel for furnaces and cleaners,
cleaning compounds and preparations) and (B) items held for retail sale in the ordinary course of business in any gift shop or drug store or retail portions of any health club, recreation area or other retail concession operated within the Hotel
(with such clause (B) items referred to as “Retail Inventory”); provided, however, the term Inventory shall not include any of foregoing items containing the name and/or logo “Westin” and/or
“Starwood”, Expendables, FF&E or Liquor Inventory. 
  
 “IT Systems” means all computer hardware, telecommunications and information technology systems located at the Hotel and owned or leased by Seller or any Affiliate of Seller (whether in the possession
or control of Seller or such Affiliate or Hotel Operator as agent for Seller) and all computer software used at the Hotel (subject to the terms of any applicable transferable third-party license agreements); provided, however, the term IT Systems
shall not include, any of the foregoing items that are owned by or licensed to the Hotel Operator or any Affiliate of Hotel Operator.  
  
 “Land” has the meaning given such term in Recital A. 
  
 “Leases” means all written leases,
subleases, licenses, concessions, and other forms of agreement, however denominated (other than Bookings), to which Seller (or Hotel Operator as agent for Seller) is a party and which grant to any party or parties (other than Seller or Hotel
Operator) the right of use or occupancy of any portion of the Hotel, and all amendments, guaranties, and other agreements affecting the same, which leases and agreements are identified on Schedule 2 attached hereto. 
  

 7 

 “Legal Requirements” means (i) all statutes, laws, ordinances, rules,
regulations, codes or other legal requirements promulgated by any Governmental Authority, including zoning, building and land use laws, the Americans With Disabilities Acts, as amended, and all Environmental Laws, and (ii) any judgment, injunction,
order or other similar requirement of any court or other adjudicatory authority to the extent that the Property is subject to the same. 
  
 “License & Permit Condition Items” has the meaning given such term in Section 8(a)(vii). 
  
 “Licenses and Permits” means all
certificates of occupancy and all zoning, subdivision, building, safety and health approvals and all other licenses, permits and entitlements issued by Governmental Authorities and held by Seller (or any Affiliate of Seller or Hotel Operator as
agent of Seller) with respect to the operation of the Hotel or the ownership of the Property, including those identified on Schedule 6 attached hereto; provided, however, the term Licenses and Permits shall not include (A) the Liquor Licenses
(which are owned by Liquor Concessionaire pursuant to the Liquor Agreement) or (B) any licenses or permits held by Hotel Operator (other than in its capacity as Seller’s agent) or any third party service provider in order for Hotel Operator or
such service provider legally to conduct business or to perform services at the Hotel. 
  
 “Limitation Period” has the meaning given such term in Section 12(c)(i). 
  
 “Liquor Agreement” means, collectively,
that certain (i) Liquor License Agreement executed by and among Seller, Hotel Operator and Liquor Concessionaire dated as of February 25, 1999, (ii) First Amendment to Liquor License Agreement by and among Seller, Hotel Operator and Liquor
Concessionaire dated as of January 25, 2005, (iii) letter agreement dated January 21, 1997, from Hotel Operator to Seller’s predecessor in interest, whereby Hotel Operator guarantees the performance by Liquor Concessionaire under agreements
with Seller, (iv) letter dated January 20, 2005, confirming such guaranty, (v) Agency and Reimbursement Agreement dated as of January 23, 1997 between Liquor Concessionaire and Hotel Operator and a Pledge of Collateral dated as of January 23, 1997
by Fred Kleisner and Liquor Concessionaire, as pledgor, in favor of Hotel Operator, as pledgee, and (vi) Amended and Restated Promissory Note dated as of January 23, 2005, by Liquor Concessionaire in favor of Seller. 
  
 “Liquor Concessionaire” means Westin CP
Beverage Company, Inc., a Delaware corporation. 
  
 “Liquor Deposit” has the meaning given such term in Section 16(a). 
  

 8 

 “Liquor Inventory” means all alcoholic beverages, and any fixtures,
equipment, glassware and other personal property used in the sale of alcoholic beverages, located at the Hotel or ordered for future use at the Hotel as of the Closing. 
  
 “Liquor License Bill of Sale” has the meaning given such term in Section 16(a).

  
 “Liquor License Escrow” has
the meaning given such term in Section 16(a). 
  
 “Liquor License Escrow Holder” has the meaning given such term in Section 16(a). 
  
 “Liquor License Escrow Note has the meaning given such term in Section 16(a). 
  
 “Liquor Licenses” means those certain
liquor licenses issued by the California Department of Alcoholic Beverage Control to Liquor Concessionaire with respect to the Hotel, which Liquor Licenses are held by the Liquor Concessionaire pursuant to the terms of the Liquor Agreement,
including those identified in Schedule 9 attached hereto. 
  
 “Liquor Purchase Price” has the meaning given such term in Section 3(e). 
  
 “Losses” means claims, liabilities, losses, actions, demands, costs or expenses (including reasonable attorneys’
fees, charges and expenses). 
  
 “Management Agreement” means that certain Amended and Restated Operating Agreement dated February 25, 1999 between Hotel Operator and Seller, as amended to date. 
  
 “Minimum Offer Number” has the meaning
given such term in Section 11(j)(1). 
  
 “Must Removes” has the meaning given such term in Section 4(a). 
  
 “Names” means all trade names, trademarks, service marks, logos and other intellectual property rights owned by Seller or
any Affiliate of Seller (whether in the possession or control of Seller or such Affiliate or Hotel Operator as agent for Seller) and used by Seller in the operation of the Hotel or the ownership of the Property, including, without limitation,
Seller’s right, title and interest in the name “Century Plaza Hotel and Spa” and derivatives thereof and all names identifying any restaurant, conference facilities and guest rooms or suites; provided, however, the term
Names shall not include (i) the name “Westin” or any other trade name, trademark, service mark, logo or other intellectual property rights owned by Hotel Operator or any 

  

 9 

 
Affiliate, or (ii) any trade name, trademark, service mark, logo or other intellectual property right owned by any tenant under a Lease or any Person other
than Seller or its Affiliates, or (iii) any trade name, trademark, service mark, logo or other intellectual property right owned by Seller and formerly used in connection with the operation or ownership of the Adjoining Project or any part thereof.

  
 “Official Records” means the
official records of the County Recorder of Los Angeles County, State of California. 
  
 “Ordinary Hotel Operations Contracts” means any of the following entered into in the ordinary course of Hotel operations
and consistent with the Management Agreement and the approved Annual Plan (as defined in the Management Agreement): (A) any bona fide purchase orders with respect to Hotel supplies, operating equipment, food and beverage, items relating to repairs,
maintenance and replacement, and similar items ordered and delivered in the ordinary course of business, except to the extent that any of the foregoing involves material (as defined in Section 14(a)(ii)) contracts for goods or services to be
provided on an ongoing and post-Closing basis; (B) arrangements with media, advertising, airlines and travel professionals regarding the sales and marketing of the Hotel, except to the extent that any of the foregoing are to be provided on a
post-Closing basis and would involve material cost to the Hotel or involve the identification of the Hotel as part of Hotel Operator’s system of hotels; (C) Bookings that are scheduled to occur prior to the Closing Date; (D) licenses relating
to software used in the operations of the Hotel, except to the extent that any of the foregoing are to be provided on a post-Closing basis and would involve material cost to the Hotel or relate to the use of software proprietary to Hotel Operator or
its Affiliates; and (E) similar customary and non-material agreements executed by Hotel Operator as agent for Seller in the ordinary course of the Hotel operations. 
  
 “Parking Agreements” means that certain Covenant and Agreement Regarding Parking dated as
of August 5, 1988 and recorded in the Official Records on August 5, 1988 as Instrument No. 88-1238397, by and between AP Properties, Ltd. (a prior owner of the adjoining parking structure) and Century Plaza Hotel Limited Partnership (a prior owner
of the Hotel), as (i) amended by that certain Amendment to Covenant and Agreement Regarding Parking dated as of July 1, 1999 and recorded in the Official Records as Instrument No. 00-0018009, and (ii) modified by Section 16(m) of that certain
Agreement Regarding Parking Spaces (Tower Parcel) dated as of January 20, 2005 by and among Century City Garage Partners, L.P., Avenue of the Stars Associates, L.L.C. and Seller.  
  
 “Permitted Title Exceptions” shall refer to all matters described in the Preliminary Title
Report and all other matters affecting title to the Real Property, excepting solely: (A) any Must Removes; and (B) Intervening Title Matters which are not addressed pursuant to Section 4(b)(x) or Section 4(b)(y). 
  

 10 

 “Person” means any natural person, corporation, general or limited
partnership, limited liability company, association, joint venture, trust or estate, Governmental Authority or other legal entity. 
  
 “Personal Property” means all tangible personal property owned or leased by Seller or any Affiliate of Seller (whether in
the possession or control of Seller or such Affiliate or Hotel Operator as agent for Seller), which is located on the Land or in the Improvements, including Expendables, FF&E, Inventory and Cash on Hand, and is utilized by Seller (or Hotel
Operator as agent for Seller) in connection with the operation of the Hotel or ownership of the Property; provided, however, the term Personal Property shall not include the Liquor Inventory owned by Liquor Concessionaire pursuant to
the Liquor Agreement. 
  
 “Preliminary
Title Report” means that certain Preliminary Report covering the Real Property dated as of August 11, 2005 and prepared by Land America Lawyers Title Company under Reference No. 1451290 and File No. 09500971 - 70. 
  
 “Property” means, collectively, the Real
Property, the Personal Property and the Intangible Property. The Property shall exclude the Liquor Inventory, the Accounts Receivable, the Accounts Payable, the Management Agreement and the Liquor Licenses. 
  
 “Proration Time” means 11:59 p.m. Los
Angeles time on the day immediately preceding the Closing Date; provided, however, with respect to food and beverage services at bars, restaurants or lounges, the Proration Time means 3:00 a.m. Los Angeles time on the Closing Date.

  
 “Purchase Price” has the
meaning given such term in Section 3. 
  
 “Purchaser Indemnitees” means Purchaser’s affiliates, members, subsidiaries, lenders and shareholders, and the respective officers, directors, members, shareholders, employees, consultants, representatives, agents and
advisors of Purchaser and Purchaser’s affiliates, members, subsidiaries, shareholders and lenders, and their respective successors and assigns. 
  
 “Purchaser’s Closing Documents” has the meaning given such term in Section 10. 
  
 “Real Property” means, collectively, the
Land, the Improvements and the Appurtenances. 
  
 “Reconciliation” has the meaning given such term in Section 11(e)(ii). 
  

 11 

 “Rehired Employees” means any Hotel Employees that are hired by
Purchaser (or Purchaser’s designee, agent or contractor) pursuant to Section 11(j) below. 
  
 “Rep Breach Notice” has the meaning given such term in Section 12(b). 
  
 “Sales Tax” has the meaning given such term
in Section 11(b)(iii). 
  
 “Seller
Indemnitees” means Seller’s affiliates, members, subsidiaries and shareholders, and the respective officers, directors, members, shareholders, employees, consultants, representatives, agents and advisors of Seller and Seller’s
affiliates, members, subsidiaries and shareholders, and their respective successors and assigns. 
  
 “Seller’s Certificate” has the meaning given such term in Section 12(b). 
  
 “Seller’s Closing Documents” has the
meaning given such term in Section 9. 
  
 “Seller’s Possession or Control” means (i) in the possession of any officer, employee or other Person acting at the direction and subject to the control of Seller, or (ii) in the possession of any other Person from
whom Seller has the right and practical ability to obtain the item in question as and when may be required under this Agreement (which shall expressly include Hotel Operator and any executive staff employee of Hotel Operator if and to the extent
that Seller possesses such right and practical ability); provided, however, any reference in this Agreement to Seller’s Possession or Control of any documents or materials expressly excludes any such documents or materials that are (A) legally
privileged or constitute attorney work product, or (B) subject to a confidentiality agreement prohibiting their disclosure by Seller; provided, however, Seller shall use commercially reasonable efforts to obtain a waiver of such
confidentiality restriction. 
  
 “Service
Contracts” means all service, supply or maintenance contracts and agreements, license and royalty agreements and all other similar agreements for goods or services used in connection with the operation of the Hotel or the ownership of the
Property to which Seller (or Hotel Operator as agent for Seller) is a party, together with all supplements and amendments thereto, which contracts and agreements (excepting Service Contracts constituting Ordinary Hotel Operations Contracts) are
identified on Schedule 3 attached hereto; provided, however, the term Service Contracts shall not include the Management Agreement, the Liquor Agreement, the Union Contracts, the Employee Agreement, the Chilled Water Agreements, the Equipment
Leases, Bookings or the Parking Agreements. 
  
 “Settlement Statement” shall have the meaning given such term in Section 11(h)(ii). 
  

 12 

 “Specific Plan” means the Specific Plan for the Century City North
Specific Plan Area,” as adopted by the City Council of the City of Los Angeles enacted in 1981. 
  
 “St. Regis Trip Count Agreement” means that certain Trip Count Separation Agreement entered as of January 25, 2005, by
and between Seller and Avenue Of The Stars Associates, L.L.C., a Delaware limited liability company. 
  
 “Surplus Trip Counts” means the aggregate number of “Trips” (as defined in the St. Regis Trip Count Agreement)
(A) relating to the Adjoining Project and to which Seller has rights pursuant to the St. Regis Trip Count Agreement, and (B) which would have been generated by the Hotel (as determined under the Specific Plan), based on the use and room counts of
the Hotel as of the enactment of the Specific Plan in excess of the Trips actually generated by the Hotel (as determined under the Specific Plan) based upon the current use and room count of the Hotel as of the date of this Agreement. 
  
 “Survey” means that certain Revised ALTA
Survey of the Real Property dated June 27, 2005, prepared by JRN Civil Engineers, Inc. as File. No. 7998, as the same may be hereafter amended, together with that certain Subterranean Site Survey of the Real Property and the Adjoining Project dated
August 8, 2002, prepared by JRN Civil Engineers, Inc. as File. No. 6822, as the same may be hereafter amended. 
  
 “Tax Free Exchange” has the meaning given such term in Section 3(f). 
  
 “Temporary Permit” has the meaning given
such term in Section 16(b). 
  
 “Tenant Deposits” means all prepaid rentals and all security and other deposits paid by the tenants under the Leases and not earned as of the Proration Time. 
  
 “Termination Notice” has the meaning given such term in Section 20(d). 

 
 “Title Company” means Lawyers Title
Insurance Corporation. 
  
 “Title
Objections” has the meaning given such term in Section 4(a). 
  
 “Title Policy” has the meaning given such term in Section 8(a)(i). 
  
 “Trip Count Assignment” has the meaning given such term in Section 9(d). 
  
 “Union Contracts” shall mean the agreements
identified on Schedule 4 to this Agreement. 
  

 13 

 “Unopened” means, with reference to Liquor Inventory and any Inventory
of food and non-alcoholic beverages, all items that remain in unopened crates or cases or which otherwise are stored in new or sealed condition (including, without limitation, unopened bottles of alcoholic or non-alcoholic beverages) awaiting use in
any storage location and not in guest rooms or immediately in service at public bars or restaurants. 
  
 “WARN Acts” shall refer collectively to the WARN Act (29 U.S.C. §§ 2101-2109) and California Assembly Bill No.
2957, as codified in California Labor Code Section 1400 et seq. 
  
 (b) In this Agreement, unless a clear contrary intention appears, (i) a singular number includes the plural number and vice versa, (ii) reference to any gender includes each other gender, (iii) reference to any
Section, Recital or Exhibit means such Section or Recital of, or Exhibit to, this Agreement, (iv) the words “hereunder”, “hereof’, “hereto” and words of similar import are references to this Agreement as a whole and not
to any particular Section or other provision of this Agreement, and (v) the word “including” (with the correlative meaning “include”) shall be construed as if followed by the phrase “without limitation”. 
  
 2. AGREEMENT OF PURCHASE AND SALE. Subject to and upon the
terms and conditions set forth in this Agreement, Seller hereby agrees to sell to Purchaser, and Purchaser hereby agrees to purchase from Seller, all of Seller’s right, title and interest in and to the Property. 
  
 3. PURCHASE PRICE. The purchase price for the Property is Two
Hundred Ninety-Three Million Dollars ($293,000,000) (the “Purchase Price”), which shall be adjusted at Closing for the prorations pursuant to Section 11 below and shall be paid to Seller by Purchaser as follows: 

 
 (a) Within 2 Business Days following the execution of
this Agreement by Seller and Purchaser, Purchaser shall deposit the sum of Fifteen Million Dollars ($15,000,000) in immediately available funds with the Title Company (together with any interest accrued thereon, the “Deposit”).

  
 (b) Title Company shall hold the Deposit for
release, retention or application to the Purchase Price as contemplated under this Agreement. If the transaction contemplated by this Agreement is consummated, the Deposit shall be credited against the Purchase Price at Closing. If the transaction
contemplated by this Agreement is not consummated because of a default by Purchaser under this Agreement, the Deposit shall be retained by Seller as liquidated damages pursuant to Section 18(a). If the transaction contemplated by this
Agreement is not consummated because of a default by Seller under this Agreement, because Purchaser has terminated this Agreement pursuant to a provision of this Agreement expressly permitting 

  

 14 

 
Purchaser to do so, or if this Agreement is terminated by Seller pursuant to Section 8(c), the Deposit shall be returned to Purchaser. 
  
 (c) Not later than 10 a.m. Los Angeles time on the Closing
Date (which time shall be deemed material for all purposes), Purchaser shall deliver to Title Company, by wire transfer of immediately available funds, an amount equal the Purchase Price, less the amount of the Deposit and plus or minus the amounts
of any prorations, credits, adjustments and closing costs to be paid by or credited to Purchaser at the Closing pursuant to this Agreement. At the Closing, the Title Company shall disburse the Purchase Price to Seller (plus or minus the amounts of
any prorations, credits and closing costs to be paid by or credited to Seller at the Closing pursuant to this Agreement) by wire transfer of immediately available funds. 
  
 (d) Prior to the Closing Date, Seller and Purchaser (each acting reasonably and in good faith) shall
endeavor to agree upon the allocation of the Purchase Price among the assets comprising the Property and, upon reaching such agreement, shall execute a written acknowledgement of such allocation pursuant to Section 1060 of the Code. Notwithstanding
the foregoing, agreement on such an allocation is not a condition precedent to Closing, and if Seller and Purchaser are not able to agree upon such allocation, each party may allocate the Purchase Price for its own purposes in its sole discretion.

  
 (e) Seller and Purchaser acknowledge that
$50,000 of the Purchase Price shall be allocated to the Purchaser’s purchase of the Liquor Inventory and the Liquor Licenses pursuant to Section 16 of this Agreement (the “Liquor Purchase Price”). Purchaser shall be credited at
Closing for such amount paid by Purchaser into the Liquor License Escrow on the Closing Date pursuant to Section 16. 
  
 (f) Notwithstanding anything to the contrary in this Agreement, Seller acknowledges and agrees that Purchaser shall have the right at
Closing to exchange the Property in a transaction intended to qualify as a tax free exchange under Section 1031 of the Code (the “Tax Free Exchange”). If Purchaser so elects to effect a Tax Free Exchange pursuant to this Section
3(f), Purchaser shall provide written notice to Seller at least five (5) Business Days prior to Closing, in which case Purchaser may enter into an exchange agreement and other exchange documents with a “qualified intermediary” (as
defined in Treas. Reg. § 1.1031(k)-1(g)(4) of the Code) (the “Exchange Party”), pursuant to which Purchaser shall assign all of its right, title and interest (but without any assignment of or release from its liabilities) under
this Agreement to the Exchange Party. Seller shall execute and deliver such documents as may be required to complete the transactions contemplated by the Tax Free Exchange which are in form and substance reasonably acceptable to it, and otherwise
cooperate with the party making the Tax Free Exchange election in all reasonable respects to effect the Tax Free Exchange. Notwithstanding the foregoing in this Section 3(f), (i) the Tax Free Exchange shall not diminish either party’s
rights, nor increase either party’s liabilities, under this Agreement 

  

 15 

 
and (ii) Seller shall have no obligation to execute any agreement which would vest Seller in ownership of any property, expose Seller to any risk of a
violation of any Legal Requirement or impose on Seller any obligation materially inconsistent with the character and extent of Seller’s obligations under this Agreement. The party making the Tax Free Exchange election shall pay for all fees,
costs and expenses in connection therewith, including, without limitation, any reasonable costs or expenses incurred by Seller in connection with the Tax Free Exchange. 
  
 4. TITLE. 
  
 (a) Purchaser acknowledges receipt of the Preliminary Title Report, together with all documents and information pertaining to the
exceptions to title listed in such report and the Survey and further acknowledges that all matters described on Schedule B to the Preliminary Title Report (as set forth on Exhibit J to this Agreement) or disclosed on the Survey (excepting
solely any Must Removes) are approved by Purchaser and shall be deemed Permitted Title Exceptions, provided, however, that Seller agrees that the following exceptions to title (“Must Removes”) shall not be treated as
Permitted Title Exceptions (even if or to the extent set forth on the Preliminary Title Report or the Survey) and shall be removed at Seller’s sole cost and expense on or prior to the Closing Date: (i) any mortgage, deed of trust, security
agreement or other similar encumbrance securing monetary obligations of Seller, (ii) any federal or state income tax liens against Seller, (iii) any judgment liens against Seller, (iv) any inchoate mechanics’ or similar liens arising out of any
work of improvement performed at the Property by or on behalf of Seller (subject to prorations pursuant to Section 11 below), (v) any other exceptions to title objected to by Purchaser which Seller may remove solely by payment (or bonding
with maximum liability) of amounts which in the aggregate do not exceed One Hundred Fifty Thousand Dollars ($150,000) and (vi) any other exceptions to title created or acquiesced to by Seller or any Affiliate of Seller in breach of Section
14(b) below. Seller shall execute and deliver customary certifications and affidavits to the Title Company, including certifications and affidavits relating to the status of leases and mechanics’ liens, but shall not be required to escrow
any monies with the Title Company in connection therewith, unless (A) so required in connection with a certification or affidavit delivered in order to effect the removal from the Title Policy of a Must Remove or (B) Seller has so agreed to such an
undertaking pursuant to Section 4(b)(x) or (y) below. 
  
 (b) In the event that any matters of record not identified in the Preliminary Title Report or the Survey become known to Seller or Purchaser or otherwise arise only following the date of this Agreement
(“Intervening Title Matters”), such matters shall be treated as Permitted Title Exceptions only if (x) the Title Company is willing fully to insure over such matters by endorsement or otherwise, without the payment of any material
premium or charge other than premiums or charges Seller, in its discretion, shall undertake to bear, or (y) Seller affords an undertaking in writing on or 

  

 16 

 
prior to the Closing Date to effect a cure of such matters reasonably satisfactory to Purchaser. If Intervening Title Matters do not so constitute Permitted
Title Exceptions, Purchaser shall have the rights afforded in Section 8(a) below if Seller does not remove such items. In no event, however, shall any title exception created solely by any acts or omissions of Purchaser or its agents be
treated as an Intervening Title Matter or a Must Remove and Seller shall have no obligation to remove any such title exceptions as a condition to Purchaser’s obligation to close under this Agreement. The parties further agree that either party
shall have the right to postpone a scheduled Closing Date to a Business Day designated in a notice given to the other party not later than one Business Day prior to the scheduled Closing Date if Intervening Title Matters arise which would not
constitute a Permitted Title Exception under the provisions of this Section 4(b), provided that (1) such extension shall be for not more than 30 days and (2) during such extension period the party giving the notice of extension shall
exercise diligent efforts to pursue the elimination or other remedy for such Intervening Title Matters. 
  
 5. DUE DILIGENCE. 
  
 (a) Purchaser acknowledges that prior to the execution of this Agreement, Seller has delivered (or caused to be delivered) copies of the
Due Diligence Materials (other than the plans and specifications for the Improvements, which have been made available for Purchaser’s review at the Hotel). The foregoing documents and materials were delivered or made available to Purchaser to
accommodate and facilitate Purchaser’s due diligence with respect to the Property and, except as may be set forth in Section 12 below, Seller makes no representations or warranties regarding such documents and materials, including the accuracy
or thoroughness of the information contained in such documents and materials or the right of Purchaser to rely thereon. Purchaser further acknowledges that Purchaser has conducted (or had the opportunity to conduct, prior to the execution of this
Agreement, all of the due diligence studies, tests, investigations and inspections of the physical, environmental, economic, financial and legal matters condition of the Property and its ownership, use and operation as Purchaser deemed necessary or
appropriate under the circumstances to afford a commitment to acquire the Property pursuant to the terms and conditions of this Agreement, including, without limitation, review and approval of any of the following matters Purchaser deemed
appropriate: studies, tests, investigations and inspections of the physical and environmental condition of the Real Property and the Personal Property; compliance with all Legal Requirements; the Declaration of Easements, the Service Contracts, the
Parking Agreements, the St. Regis Trip Count Agreement, the Chilled Water Agreements, Equipment Leases, Leases, Bookings, Licenses and Permits (including the assignability thereof); economic analyses and forecasts prepared by or on behalf of
Purchaser; occupancy rates and market studies; insurance matters; and any and all other matters or materials described in subsection (b) below. Purchaser hereby specifically acknowledges its discretionary approval of all such matters and, except as
may be expressly set forth in Sections 4(b), 8, 12(b), 17 or 18, acknowledges the absence of any further condition, 

  

 17 

 
express or implied, to Purchaser’s obligation to close the acquisition of the Property in accordance with this Agreement. 
  
 (b) Subject to the provisions of Section 5(c) below,
Purchaser, its agents, employees, representatives and consultants nevertheless shall have the continuing right to review and inspect the physical, engineering, operational, legal, economic and environmental condition of the Property during the term
of this Agreement (provided that such right of continuing inspection and review shall not imply any further condition or right of termination based on such inspection and review), including, without limitation: (i) review of the Due Diligence
Materials and all other financial and other books and records and computer data relating to the operation of the Business or the ownership of the Property (including, without limitation, insurance policies, bills, invoices, receipts and other
general records relating to the income and expenses of the Hotel, sales and marketing information, booking and reservations reports, tenant records and correspondence relating to the Leases, records and correspondence relating to any contractors to
the Hotel, and Hotel Employee information) which are in Seller’s Possession or Control; (ii) review of all building plans, specifications and drawings, surveys and warranties for services and materials provided to the Hotel; (iii) review of
engineering, environmental and other reports and other documents prepared in connection with the construction, maintenance, repair, management or operation of the Hotel which are in Seller’s Possession or Control; (iv) review of the
Hotel’s compliance with all Legal Requirements, including all regulatory and governmental licenses and permits relating to the Hotel; (v) review of the status of all labor contracts and negotiations, including the Union Contracts; and (vi)
performance of environmental audits, non-destructive or minimally intrusive structural inspections, tenant interviews, interviews with the owner of the Adjoining Project and any other inspection or review that Purchaser deems necessary or advisable
to permit Purchaser, and its prospective lenders, if any, and their respective agents, representatives or consultants, to evaluate the Property. Seller shall have no obligation, however, to provide as part of any Due Diligence Materials provided to
Purchaser or to which Purchaser shall be afforded access: (A) any information or software proprietary to Hotel Operator and to which Seller has no right of ownership or review under the Management Agreement; (B) attorney-client communications,
attorney work product and property valuation documents; (C) any employee records, guest data or other information as to which any laws or regulations governing privacy would restrict such disclosure; or (D) Seller’s internal memoranda,
financial projections, budgets (except as prepared by Hotel Operator for Seller under the Management Agreement), appraisals, accounting and tax filings and records (except as prepared by Hotel Operator for Owner under the Management Agreement) and
similar proprietary or confidential information. Seller hereby authorizes Purchaser to provide copies of any Due Diligence Materials reviewed by Purchaser to such prospective lenders and their agents, employees, representatives or consultants
directly involved with the purchase of the Property, provided that Purchaser is not authorized to furnish any of the Due Diligence Materials to any other Person prior to the Closing without Seller’s prior 

  

 18 

 
written consent. Seller shall have no obligation or responsibility to provide any Due Diligence Materials directly to any such Persons. If this Agreement is
terminated for any reason whatsoever, Purchaser promptly shall return to Seller all of the Due Diligence Materials in the possession of Purchaser or any of its agents, employees, consultants or its prospective lenders or equity investors. This
Section 5(a) shall survive the termination of this Agreement. 
  
 (c) Purchaser’s exercise of the continuing rights of review and inspection set forth in Section 5(b) shall be subject to the following limitations: (A) any entry onto the Real Property by Purchaser, its
agents, employees, representatives or consultants shall be during normal business hours, following reasonable prior notice to Seller and subject to reasonable coordination with the Hotel Operator; (B) Purchaser shall not conduct any drilling, test
borings or other disturbance of the Real Property without Seller’s prior written consent to the scope of work, the proposed contractor (as to whom the consent shall not be unreasonably withheld or delayed) and the schedule for performance; (C)
any discussions or interviews with Hotel Operator, any tenant or either of their respective personnel, at Seller’s election, shall be conducted in the presence of Seller or its representatives; (D) any discussions or interviews with Hotel
Operator or any other employees at the Real Property shall be limited to (i) senior employees designated by Seller and (ii) interviews with Hotel Employees not employed under the Union Contracts regarding continued employment following the Closing
Date (which discussions or interviews shall be coordinated through Seller and, at Seller’s election, shall include a representative of Seller); (E) Purchaser shall exercise reasonable diligence not to disturb the use or occupancy or the conduct
of business at the Real Property; (F) Purchaser shall obtain and furnish to Seller a certificate of insurance showing that Purchaser has obtained a policy of commercial liability insurance (occurrence basis) with a combined single limit coverage of
at least Two Million Dollars ($2,000,000) naming Purchaser as an insured and Seller, Hotel Operator as additional insureds, issued by a responsible insurer with an A.M. Best’s Key Rating of at least AX approved by Seller (which consent shall
not be unreasonably withheld or delayed) and licensed and admitted in California to conduct business in California (such insurance policy shall expressly provide that such insurance may not be canceled or reduced in scope or coverage without at
least thirty (30) days’ prior written notice to Seller); (G) Purchaser shall repair any damage to the Property arising from these inspections and indemnify, defend and hold Seller and any employees, agents or representatives harmless from and
against all Losses resulting solely from these inspections (provided, however, Purchaser shall have no such indemnification obligation with respect to Losses arising from (x) the gross negligence or willful misconduct of Seller or (y) the mere
discovery of an pre-existing condition of the Property); and (H) Purchaser’s obligations imposed by this Section 5(c) shall survive termination of this Agreement. Notwithstanding anything in this Section or in Section 20(q) to the
contrary, Purchaser shall have the right to communicate with any (y) Governmental Authority or any official, employee, agent or representative thereof, with respect to the subject matter of such Governmental Authority’s authority over the

  

 19 

 
Property or the operation of the Hotel, provided that the results of any physical or environmental inspections, studies or tests performed by Purchaser in
connection with its inspection of the Property shall be subject to disclosure solely with Seller’s consent (which consent shall not be unreasonably withheld or delayed), and (z) any Person who prepared any Due Diligence Materials with respect
to the subject matter thereof, provided that any such communications with such Persons other than the Title Company, the preparer of the Survey and any Person who prepared any environmental, geotechnical, engineering or other reports with
respect to the physical condition of the Property shall be subject to Seller’s consent (which consent shall not be unreasonably withheld or delayed) and, at Seller’s election, any such communications shall be conducted in the presence of
Seller or its representatives. 
  
 (d) Purchaser
specifically acknowledges (i) that Purchaser has entered into this Agreement with the intention of making and relying upon its own investigation of the physical, environmental, economic and legal condition of the Property as contemplated above and
(ii) that Purchaser is not relying upon any representations and warranties, other than those specifically set forth in Section 12 below, made by Seller or anyone acting or claiming to act on Seller’s behalf. Subject to the express
representations and warranties set forth in Section 12 and in any document executed by Seller in connection with the transaction contemplated hereby, Purchaser further acknowledges that it has not received from Seller any accounting, tax,
legal, development planning, architectural, engineering, management or other advice with respect to this transaction and is relying solely upon the advice of its own advisors. Subject to Section 12 and any other express provisions of this
Agreement, Purchaser shall purchase the Property in an “as is, where is and with all faults” condition on the Closing Date and assumes the risk that adverse physical, environmental, governmental, economic or legal conditions may not have
been revealed by its investigation. Except with respect to any claims arising out of any breach of express covenants, indemnifications, representations or warranties under this Agreement, to the extent that they survive the Closing or (as to any
covenants or indemnifications) are expressly set forth under any document executed by Seller in connection with the transaction contemplated by this Agreement, Purchaser, for itself and its agents, Affiliates, directors, officers, members, partners,
shareholders, successors and assigns, hereby waives, releases and forever discharges Seller and the Seller Indemnitees from any and all Losses which Purchaser has or may have in the future, arising out of the physical, environmental, governmental,
economic or legal condition of the Property, including, without limitation, any rights, claims or demands for indemnification, contribution or recovery arising under any federal, state or local statute, rule or ordinance relating to liability of
property owners for environmental matters. Without limiting the generality of the foregoing, Purchaser acknowledges that Seller expressly disclaims and negates, as to Personal Property and fixtures and all of the other Property: (A) any implied or
express warranty of merchantability; (B) any implied or express warranty of fitness for a particular purpose; (C) any implied or express warranty of conformity to models or samples of materials; and (D) any implied or express warranty with respect
to 

  

 20 

 
the condition of the Property, its compliance with any Legal Requirements, the past or projected financial condition, performance, and operating results of
the Hotel (including income or expenses thereof or occupancy rates therefor) or the uses permitted on, the development requirements for, or any other matter or thing relating to the Property or any portion thereof, except, in each instance, as
otherwise expressly set forth in this Agreement and in any document executed by Seller in connection with the transaction contemplated hereby. Notwithstanding the foregoing, Seller’s acknowledges and agrees that the release set forth herein
shall not apply to third party claims for personal injury or property damage made by a Person (other than Purchaser, its agents, employees, representatives and consultants, any successors or assigns of Purchaser or any Affiliate of any such party)
if and to the extent based on an event or circumstance that occurred at the Property prior to the Closing Date, regardless of whether such claim was made before or after the Closing Date, including, without limitation, any litigation set forth in
Exhibit H, provided that the foregoing exclusion from the effect of the release shall not express or imply any affirmative indemnity or other obligations of Seller with respect to such matters. Purchaser acknowledges that, to the extent
required to be operative, the disclaimers of warranties contained in this Section are “conspicuous” disclaimers for purposes of any applicable Legal Requirement. For the foregoing purposes (without waiving the benefit of any express
covenants, representations or warranties set forth in this Agreement), Purchaser hereby specifically waives the provisions of any law of any jurisdiction the import of which is as follows: 
  
 A general release does not extend to claims which the creditor does not know or suspect to
exist in the creditor’s favor at the time of executing the release, which if known by the creditor must have materially affected a settlement with the debtor. Purchaser hereby specifically acknowledges that Purchaser has carefully reviewed this
Section 5(c) and discussed its import with legal counsel and that the provisions of this Section 5(c) are a material part of this Agreement. 
  

	
	
	 
	 Purchaser

  
 6.
CLOSING. Provided that all conditions precedent to Closing have then been satisfied or waived in accordance with this Agreement, the purchase and sale contemplated herein shall be consummated on the Closing Date. If the Closing has not
occurred by the Closing Date (other than as a result of a default under this Agreement, in which event the provisions of Section 18 shall control), any party not then in default under this Agreement thereafter may deliver a Termination
Notice. 
  

 21 

 7. CLOSING COSTS. Costs of the transaction contemplated by this Agreement shall be
allocated as follows: 
  
 (a) Purchaser and
Seller each shall pay one-half of the fees and charges of Title Company for acting as escrow holder under this Agreement. 
  
 (b) Purchaser shall pay (i) the fees for recording the Deed, (ii) all fees and costs in connection with Purchaser’s financing, if
any, not paid by Purchaser’s lenders (including the premium for a lender’s policy of title insurance and endorsements thereto), (iii) the premium for the ALTA extended coverage portion of the Title Policy, including the premiums for any
endorsements to the Title Policy that Purchaser requests which are not covered by the payment of the premium described in Section 7(c)(ii) below, (iv) the cost of any co-insurance and reinsurance required by Purchaser (or its lenders, if
any), and (v) the cost of any modifications or supplements to the Survey requested by Purchaser (or its lenders, if any). Nothing contained in this Agreement shall be deemed or construed to make the Closing contingent on Purchaser obtaining a loan
or commitment therefor. 
  
 (c) Seller shall pay
(i) all state, county and city documentary transfer taxes or stamp taxes imposed upon the conveyance of the Real Property to Purchaser, (ii) all premiums for any endorsements to the Title Policy for removing from the Title Policy any (A) Must
Removes or (B) exceptions which Seller has agreed to remove through such endorsements pursuant to Section 4(b)(x) or (y) above, (iii) the premium for the CLTA standard coverage portion of the Title Policy, and (iv) any commission due to
Eastdil Realty. 
  
 (d) Any other costs incurred
through the escrow with Title Company shall be apportioned in the manner customary in escrows for transactions similar to that contemplated in this Agreement. 
  

(e) Purchaser shall pay any fees, costs and expenses that may be payable to Governmental Authorities prior to or at the Closing in
order to transfer the Licenses and Permits in connection with Purchaser’s acquisition of the Property (in no event shall Seller be responsible for any such fees, costs or expenses payable in order to transfer any Licenses and Permits into
Purchaser’s name, or for the fees, costs or expenses of any consultants or advisors engaged by Purchaser in connection with the transfer of any Licenses and Permits). Purchaser shall be responsible for the payment of all fees, costs and
expenses that may be payable for Purchaser to obtain new or substitute Licenses and Permits. Notwithstanding the foregoing, the transfer of any of such Licenses and Permits, and Purchaser’s receipt of any new Licenses and Permits or any such
consents or approvals, shall not be a condition precedent to Purchaser’s obligation to consummate the transaction contemplated by this Agreement, nor shall any of the foregoing delay the Closing in any way. 
  
 (f) Except as otherwise expressly provided to the contrary
in this Agreement, each party shall pay all of its own legal, accounting, consulting and due 

  

 22 

 
diligence fees and costs and all other costs and expenses incurred by it in connection with the transaction contemplated by this Agreement. 
  
 8. CONDITIONS PRECEDENT TO CLOSING. 

 
 (a) Purchaser’s Conditions. The following are
conditions precedent to Purchaser’s obligation to consummate the transaction contemplated by this Agreement: 
  
 (i) Title Company shall have unconditionally committed to issue, upon the sole condition of the payment of its regularly scheduled premium
together with any additional premium required to issue the endorsements described below, an ALTA extended coverage Owner’s Policy of Title Insurance, with California CLTA endorsement nos. 100 (modified for an owner’s policy), 110.1
(modifying the policy form to eliminate any coinsurance provisions and any bankruptcy, insolvency and creditors’ rights exclusions from coverage), 116.1, 116.4, and any other endorsements as shall be agreed by Purchaser and Title Company in
writing, insuring that title to the Real Property is vested of record in Purchaser on the Closing Date subject only to the printed conditions and the Permitted Title Exceptions (the “Title Policy”); 
  
 (ii) Seller shall have timely performed, in all material
respects, all of the obligations required to be performed by Seller by the terms of this Agreement at or prior to the Closing Date; 
  
 (iii) All representations and warranties of Seller set forth in this Agreement shall be true and correct, in all material respects, as of
the Closing Date; 
  
 (iv) Seller shall
have delivered, or caused to be delivered, to Title Company Seller’s Closing Documents and any other items required to be delivered by Seller pursuant to the provisions of Section 9; 
  
 (v) Seller shall have caused the Management Agreement to be
terminated as of the Closing; and 
  
 (vi)
Purchaser shall have received estoppel certificates dated no earlier than thirty (30) days prior to the Closing Date (each, an “Estoppel Certificate”) from each of the other parties to the (A) Declaration of Easements, (B) Chilled
Water Agreements, (C) the Parking Agreements and (D) the Chilled Water Partial Assignment. The Estoppel Certificates shall be in the forms attached to this Agreement as Exhibits I-1, I-2, I-3 and I-4, in each case subject to (x) non-material
modifications, (y) notations of items which constitute Permitted Exceptions or items which are the subject of proration under this Agreement and (c) modifications thereof disclosing or to conform the same to the Due Diligence 

  

 23 

 
Materials or any information set forth on Exhibit H. Seller shall have the right to postpone a scheduled Closing Date to a Business Day designated in
a notice given to the other party not later than one Business Day prior to the scheduled Closing Date if the foregoing condition is not satisfied as of the scheduled Closing Date, provided that (1) Seller shall not have such right of
extension if Seller’s failure to secure the Estoppel Certificates is based on Seller’s failure to pursue the Estoppel Certificates with due diligence prior to the Closing Date, (2) any such extension shall be for not more than 30 days and
(3) during such extension period the parties shall exercise diligent efforts to pursue the receipt of the Estoppel Certificates. 
  
 (b) Seller’s Conditions. The following are conditions precedent to Seller’s obligation to consummate the transaction
contemplated by this Agreement: 
  
 (i) Purchaser
shall have timely performed, in all material respects, all of the obligations required to be performed by Purchaser by the terms of this Agreement at or prior to the Closing Date; 
  
 (ii) All representations and warranties of Purchaser set forth in this Agreement shall be true and correct,
in all material respects, as of the Closing Date; and 
  
 (iii) Purchaser shall have delivered, or caused to be delivered, to Title Company an amount equal to the Purchase Price, less the amount of the Deposit and plus or minus the amounts of any prorations, credits, adjustments and closing costs
to be paid by or credited to Purchaser at the Closing pursuant to this Agreement (by wire transfer of immediately available funds) and Purchaser’s Closing Documents. 
  
 (c) Failure or Waiver of Conditions Precedent. In the event any of the conditions set forth in
Section 8(a) or Section 8(b) are not fulfilled, the party benefited by such condition (and solely such party) may, by written notice to the other party, terminate this Agreement, whereupon all rights and obligations hereunder of each
party shall be of no further force and effect, provided that, subject to Section 18, no such termination shall relieve either party of any obligations or Losses arising as a consequence of a breach or default under this Agreement or with
respect to any claim under any indemnification or other provision expressly contemplated to survive termination of this Agreement. Either party may, at its election, at any time or times on or before the date specified for the satisfaction of the
condition, waive in writing the benefit of any condition set forth in Section 8(a) or Section 8(b) benefiting such party. In the event this Agreement is terminated as a result of the failure of any condition set forth in Section
8(a) (or as a result of any other event giving rise to a right on the part of Purchaser to terminate this Agreement), Seller shall direct the Title Company to return the full amount of the Deposit to Purchaser. 
  

 24 

 9. SELLER’S CLOSING DOCUMENTS. On the Business Day immediately
preceding the Closing Date, Seller shall deliver or cause to be delivered to Title Company the following (“Seller’s Closing Documents”): 
  

(a) A Grant Deed in the form of Exhibit C attached hereto (the “Deed”), duly executed and acknowledged by
Seller, conveying the Real Property to Purchaser; 
  
 (b) A Bill of Sale in the form of Exhibit D attached hereto (the “Bill of Sale”), duly executed by Seller, conveying the Personal Property to Purchaser; 
  
 (c) An Assignment and Assumption Agreement in the form of Exhibit E attached hereto (the
“General Assignment”), duly executed by Seller, assigning to Purchaser the Intangible Property (including, without limitation, rights and obligations under the Chilled Water Agreements and the Parking Agreements, but excluding
rights to the Surplus Trip Counts); 
  
 (d) An
agreement in the form of Exhibit F attached hereto assigning to Purchaser all of Seller’s rights to the Surplus Trip Counts relating to the Adjoining Project reserved to Seller pursuant to the St. Regis Trip Count Agreement (the
“Trip Count Assignment”) duly executed and acknowledged by Seller; 
  
 (e) An affidavit from Seller which satisfies the requirements of Section 1445 of the Code, a California Franchise Tax Board Form 590 (RE),
and any real estate transfer tax declaration or similar document as may be required under applicable Legal Requirements in connection with the conveyance of the Real Property, each duly executed by Seller (if applicable); 
  
 (f) The Seller’s Certificate; 
  
 (g) A resolution of Seller authorizing the sale of the
Property to Purchaser on the terms and conditions set forth in this Agreement and the execution of Seller’s Closing Documents, together with a good standing certificate issued by the Delaware Secretary of State with respect to Seller and
confirmation from the California Secretary of State that Seller is authorized to conduct business in the State of California; 
  
 (i) A certificate or registration of title for any vehicle constituting part of the Personal Property, duly executed by Seller, conveying
such vehicle to Purchaser; 
  
 (j) If not
delivered prior to such date, the Estoppel Certificates; 
  
 (k) A list of all Bookings scheduled to occur on and after the Closing, provided that Purchaser acknowledges that Seller must rely upon the Hotel Operator for the preparation and content of such listing and that
Seller’s obligation under this subsection (k) shall be limited to affording a direction to Hotel Operator to prepare such listing and delivering to Purchaser any listing so prepared. Seller shall have no liability 

  

 25 

 
for the form or content of such listing, provided that Seller shall include in the Seller’s Certificate delivered pursuant to Section 12(b)(i) a
representation, to Seller’s actual knowledge, of the accuracy of any such listing of Bookings delivered to Purchaser and Seller’s liability, if any, for the breach of such representation shall be governed by the provisions of Section 12(b)
and (c) below; 
  
 (l) Such other instruments and
documents (including a customary parties in possession affidavit, a customary mechanics’ lien affidavit, a preliminary settlement statement (which shall be subject to final reconciliation in accordance with the provisions of Section
11(h)), personal property tax forms and certificates, and notices to tenants under the Leases, and parties to the Service Contracts, the Union Contracts, the Parking Agreements, the Chilled Water Agreements and the Equipment Leases) as
reasonably may be required to transfer the Property to Purchaser in accordance with this Agreement. 
  
 Immediately after the Closing, Seller shall make available to Purchaser, at the Hotel, the Books and Records (and Seller shall exercise diligent and commercially reasonable efforts to ensure that Hotel Operator turns
over such Books and Records to Purchaser upon the Closing), the plans and specifications, any originals in Seller’s Possession or Control of the Leases, Union Contracts, Service Contracts, Equipment Leases, Chilled Water Agreements, Parking
Agreements, Licenses and Permits, and warranties and guarantees relating to the Property, together with any keys and combinations to locks in the Hotel. 
  
 10. PURCHASER’S CLOSING DOCUMENTS. On the Business Day immediately preceding the Closing Date, Purchaser shall deliver to Title Company
an amount equal to the Purchase Price, less the amount of the Deposit and plus or minus the amounts of any prorations, credits, adjustments and closing costs to be paid by or credited to Purchaser at Closing pursuant to this Agreement (by wire
transfer of immediately available funds), and the following documents (“Purchaser’s Closing Documents”): 
  
 (a) The General Assignment, duly executed by Purchaser; 
  
 (b) The Trip Count Assignment duly executed and acknowledged by Purchaser; 
  
 (c) A resale certificate in the form attached hereto as
Exhibit G; 
  
 (d) A closing certificate
from Purchaser reaffirming Purchaser’s representations and warranties (as updated and revised to reflect facts and circumstances that may have changed since the date of this Agreement); 
  
 (e) A resolution of Purchaser authorizing the purchase of
the Property from Seller on the terms and conditions set forth in this Agreement and the execution of 

  

 26 

 
Purchaser’s Closing Documents, together with a good standing certificate issued by the Secretary of State of the state of organization with respect to
Purchaser and, if qualification to do business in California is legally required to own the Real Property, confirmation from the California Secretary of State that Purchaser is authorized to conduct business in the State of California; 

 
 (f) A counterpart of each of the documents and
instruments to be delivered by Seller under Section 9 which require execution by Purchaser to the extent not enumerated in this Section 10; and 
  

(g) Such other instruments and documents (including any personal property tax forms and certificates and a preliminary settlement
statement (which shall be subject to final reconciliation in accordance with the provisions of Section 11(h)), as reasonably may be required to effect the transfer of the Property to Purchaser. 
  
 11. PRORATIONS, CLOSING ADJUSTMENTS & EMPLOYEES.

  
 (a) General. Except as otherwise
expressly provided in this Agreement, all income and expenses of the Property with respect to the period prior to the Proration Time shall be for the account of Seller and all income and expenses of the Property with respect to the period from and
after the Proration Time shall be for the account of Purchaser. 
  
 (b) Taxes & Insurance. 
  
 (i) Notwithstanding Section 11(a), there shall be no proration of amounts paid or payable for Seller’s insurance relating to the Property (which insurance, except as otherwise provided in Section
17, shall not be assigned to Purchaser; Purchaser shall be responsible for obtaining insurance coverage with respect to the Property for the period from and after the Proration Time, and Seller shall be entitled to any refunds with respect to
insurance relating to the Property obtained by Seller). 
  
 (ii) Real and personal property taxes, assessments and special district levies shall be prorated for the tax fiscal year in which the Closing Date occurs on the basis of the then most current tax bills available with
respect to the Property; Seller shall be charged with said proration for the period through the day prior to the Closing Date and Purchaser shall be charged with said proration for the period from and after the Closing Date. If the prorations are
not based on the actual tax bills for the tax fiscal year in which the Closing Date occurs, Seller and Purchaser shall re-prorate such taxes, assessments and levies based upon the actual tax bills within thirty (30) days after such tax bills are
received. Such proration shall satisfy the obligation of Seller to Purchaser with respect to all such taxes, assessments and levies on the Property for the tax fiscal year in which the Closing 

  

 27 

 
Date occurs. Purchaser shall acquire the Property subject to all taxes, levies and assessments levied against the Property after the Closing or which
otherwise constitute Permitted Title Exceptions (including any increase in ad valorem taxes on account of the transaction contemplated by this Agreement). Purchaser acknowledges that, as a result of the sale, the Property will be subject to
reassessment for purposes of real property taxes, and that any increase in real property taxes as a result of the sale to Purchaser shall be the sole responsibility of Purchaser. Notwithstanding anything to the contrary set forth in this Section
11(b)(ii), Seller shall be entitled to the full amount of all refunds and rebates resulting from any property tax appeals or requests for reassessments filed by Seller for tax years prior to the 2004-2005 tax year, and if Seller has filed a tax
appeal or request for reassessment for the 2005-2006 tax year, Seller and Purchaser shall share the amount of any rebate or refund resulting therefrom (after first paying to Seller all reasonable costs and expenses incurred by Seller in pursuing
such appeal or reassessment) in proportion to their respective periods of ownership of the Property for such tax year. For purposes of determining the rebate or refund resulting from a reassessment of the 2005-2006 tax year, all reasonable costs and
expenses of Seller incurred in connection with the filing and prosecution of such claim shall be deducted and paid to Seller before making the allocation set forth in the preceding sentence. The parties reproration obligations under this Section
11(b)(ii) shall survive Closing. 
  
 (iii)
Seller shall pay (1) all sales, revenue and excise taxes (and any surtax, interest and penalties thereon) (collectively, “Sales Tax”) payable with respect to Seller’s operation of the Hotel for periods prior to the Closing
Date, and (2) any Sales Tax due in connection with the sale to Purchaser of those items of Personal Property for which Sales Tax is payable. 
  
 (iv) Seller shall pay all room occupancy and use taxes due and payable with respect to the Hotel for the period prior to the Closing Date,
and Purchaser shall pay all room occupancy and use taxes due and payable with respect to the Hotel for the period on and after the Closing except that Seller and Purchaser each shall pay fifty percent (50%) of all room occupancy and use taxes due
and payable with respect to the Hotel for the entire night beginning on the day preceding the Closing Date (i.e., the night that straddles the Closing). 
  
 (c) Inventory and Cash on Hand. 
  
 (i) At the Closing, the Purchase Price shall be increased by an amount equal to the value (at Seller’s cost) of all (A) Retail
Inventory located at the Hotel as of the Proration Time and (B) Unopened Liquor Inventory and Unopened Inventory of food and non-alcoholic beverages (all as determined pursuant to the inventory to be conducted by representatives of Seller and
Purchaser as of the Proration Time, as set forth in Section 11(h)). 
  

 28 

 (ii) Subject to the proration of such cash received on account of the Closing Date in
accordance with Section 11(d), at the Closing, Seller shall deliver to Purchaser the Cash on Hand (which Cash on Hand shall be in an amount sufficient to continue Hotel operations consistent with the past practices of the Hotel in the
ordinary course of business), and the Purchase Price shall be increased by an amount equal to the Cash on Hand as of the Proration Time. Seller shall cause to be counted the amount of Cash on Hand as of the Proration Time and such amount shall be
inserted on the Settlement Statement, subject to Purchaser’s confirmation pursuant to Section 11(h). 
  
 (d) Property Income and Expense. 
  
 (i) (A) All Hotel receipts (whether in cash or accounts receivable) from guest room rentals and Hotel services prior to the Proration Time
shall belong to Seller, (B) Seller shall receive a credit in an amount equal to one half of the guest room rentals, whether in cash or accounts receivable, arising from occupancy for the entire night beginning on the day preceding the Closing Date
(i.e., the night that straddles the Closing), less one-half of any third-party collection costs such as travel agent commissions or credit card company charges for payment of such claims, and (C) all payments for Hotel services, whether in cash or
accounts receivable, arising from Hotel services provided beginning on the day preceding the Closing Date shall belong to Seller. One half of the guest room rentals, whether in cash or accounts receivable, arising from occupancy for the entire night
beginning on the day preceding the Closing Date (less one-half of any third-party collection costs such as travel agent commissions or credit card company charges for payment of such claims) and all receipts for guest room rentals and Hotel services
thereafter shall belong to Purchaser. 
  
 (ii)
All receipts and expenses from restaurant and bar operations at the Hotel to the closing hours of facility operations which commenced on the day preceding the Closing Date shall belong to, and be paid by, Seller. All thereafter accruing receipts and
expenses from restaurant and bar operations at the Hotel shall be for Purchaser’s account. 
  
 (iii) Postage meter rental and unused meter postage shall be prorated as of 12:01 a.m. on the Closing Date. 
  
 (iv) Purchaser shall purchase any and all Accounts
Receivable outstanding and unpaid for a period of 90 days or fewer and Seller shall receive a credit for such Accounts Receivable in the following amounts (in each case less the amount of any travel agent commissions or credit card company charges
for payment of the Account Receivable): 
  

	 	(A)	95% of the amount of any Accounts Receivable outstanding and unpaid for a period of 30 days or fewer; 

  

 29 

	 	(B)	90% of the amount of any Accounts Receivable outstanding and unpaid for a period of more than 30 but not more than 60 days; and 

  

	 	(C)	50% of the amount of any Accounts Receivable outstanding and unpaid for a period of more than 60 but not more than 90 days. 

  
 Neither party shall be debited or credited in the prorations process for any
Accounts Receivable outstanding and unpaid for a period of more than 90 days (the “Aged Receivables”), provided that (v) following the Closing Date, Purchaser shall exercise commercially reasonable efforts consistent with
Purchaser’s ordinary course policies and procedures for the collection of accounts receivable belonging solely to Purchaser to collect all Aged Receivables, (w) Purchaser and Seller shall divide 50%-50% any Aged Receivables so collected by or
on behalf of Purchaser (less any third-party collection costs, such as travel agent commissions, credit card company charges or collection agency fees incurred for payment of such claims), (x) Purchaser shall remit to Seller Seller’s 50% share
promptly following collection of any Aged Receivables, (y) no later than the 15th day of each calendar month after the Closing Date for a period of 12 calendar months (with reasonable extensions if and to the extent that Aged Receivables remain
outstanding as to which Purchaser is continuing to pursue collection), Purchaser shall deliver to Seller a written report of the amount of Aged Receivables collected (and any collection costs incurred) in the preceding month pursuant to this Section
11(d)(iv) and (z) Seller shall have a right of inspection and audit (upon reasonable prior notice and at Seller’s cost and expense) of books and records pertaining to the Aged Receivables. 
  
 (v) All Accounts Payable owing for goods and service
furnished prior to the Proration Time shall be paid by Seller in full prior to the Closing. Purchaser shall pay, as they become due and payable, all Accounts Payable relating to goods and services (including advertising) for the operation of the
Hotel for which orders have been placed but, as of the Proration Time, such goods and services have not yet been delivered or provided, provided that such goods and services are consistent with Seller’s past practices and are of a type
that will benefit the Hotel and provided further that Seller shall be responsible for the following Accounts Payable (the “Non-Assumed Accounts Payable”): (A) Accounts Payable to Hotel Operator on account of fees and
charges (as distinct from Hotel expenses paid by and reimbursable to Hotel Operator) payable under the Management Agreement, the Liquor Agreement (except if and to the extent such agreement remains effective following the Closing Date pursuant to
Section 

  

 30 

 
16(d) below) or the Employee Agreement or (B) Accounts Payable for the purchase of any FF&E carrying any trade name, trademark, service mark, logo or
other intellectual property rights owned by Hotel Operator. Seller shall indemnify and hold harmless Purchaser and the Purchaser Indemnitees from and against any and all Losses incurred by Purchaser and any Purchaser Indemnitees with respect to any
Non-Assumed Accounts Payable and any other Accounts Payable owing for goods and service furnished prior to the Proration Time. Purchaser shall indemnify, defend and hold harmless Seller and the Seller Indemnitees for, from and against any and all
Losses incurred by Seller or any Seller Indemnitees with respect to any Accounts Payable (other than Non-Assumed Accounts Payable) for goods and service furnished following the Proration Time. 
  
 (vi) Purchaser shall receive a credit on account of any
vouchers, coupons or other discounted or free services or accommodations that are scheduled or otherwise available to be made on or after the Closing Date (“Unredeemed Certificates”) in an aggregate amount determined by multiplying
(A) the aggregate of the face amounts of the Unredeemed Certificates, less (i) 50% of the face amount of each Unredeemed Certificate issued two years or more prior to the Closing Date, (ii) 25% of the face amount of each Unredeemed Certificate
issued at least one year but less than two years prior to the Closing Date and (iii) 10% of the face amount of each Unredeemed Certificate issued less than one year prior to the Closing Date, times (B) 90%. 
  
 (e) Rents. 
  
 (i) Rents payable by tenants under the Leases, shall be
prorated as of the Closing Date on a cash basis (i.e., any rent on account of the Closing Date itself shall be prorated to the account of Purchaser). Seller shall not receive a credit for any unpaid delinquent rents, but Seller shall retain the
right to seek to collect rents that were delinquent as of the Closing Date, provided that Seller shall have no right to bring any action for unlawful detainer or to disturb the rights of the applicable tenant under the applicable Lease. Any rental
payments received by Purchaser shall be applied first to current rents due, then to rents due during the month in which the Closing occurred, then to rents due prior to the month in which the Closing occurred. 
  
 (ii) Any percentage rent, escalation charges for real estate
taxes, parking charges, operating and maintenance expenses, escalation rents or charges, electricity charges, cost of living increases or any other charges of a similar nature other than fixed or base rent under the Leases (collectively, the
“Additional Rents”) shall be prorated as of the Closing Date between Purchaser and Seller on or before the date which is sixty (60) days following the end of the calendar year in which the Closing occurs based on the actual number
of days of the year and month which shall have elapsed as of the Closing Date. Prior to the end of the 

  

 31 

 
calendar year in which the Closing occurs, Seller shall provide Purchaser with information regarding Additional Rents which were received by Seller prior to
Closing and the amount of reimbursable expenses paid by Seller prior to Closing. On or before the date which is sixty (60) days following the end of the calendar year in which the Closing occurs, Purchaser shall deliver to Seller a reconciliation of
all expenses reimbursable by tenants under the Leases, and the amount of Additional Rents received by Seller and Purchaser relating thereto (the “Reconciliation”). Upon reasonable notice and during normal business hours, each party
shall make available to the other all information reasonably required to confirm the Reconciliation. In the event of any overpayment of Additional Rents by the tenants to Seller, Seller shall promptly, but in no event later than fifteen (15) days
after receipt of the Reconciliation, pay to Purchaser the amount of such overpayment and Purchaser, as the landlord under the particular Leases, shall pay or credit to each applicable tenant the amount of such overpayment. In the event of an
underpayment of Additional Rents by the tenants to Seller, Purchaser shall pay to Seller the amount of such underpayment within fifteen (15) days following Purchaser’s receipt of any such amounts from the tenants. 
  
 (f) Tenant and Booking Deposits. At the Closing,
Purchaser shall assume all of the rights and obligations of Seller under the Leases and Bookings arising after the Proration Time, including rights and obligations with respect to any Tenant Deposits, Booking Deposits prepaid rentals and other
amounts paid and not yet earned as of the Proration Time, and Purchaser shall receive a credit against the Purchase Price at the Closing in an amount equal to all such amounts (and, therefore, Seller shall have the right to retain any amounts
relating to such items on deposit in Seller’s account). The return or application of all prepaid rents and other unearned amounts paid under the Leases, Tenant Deposits and Booking Deposits as of the Proration Time shall be the obligation of
Purchaser after the Closing. 
  
 (g)
Guests’ Property. All baggage or other property of Hotel guests checked or left in Seller’s or Hotel Operator’s care (other than property left in Hotel safe deposit boxes) as of the Closing shall be listed in an inventory to be
prepared in duplicate by Seller and signed by Seller’s and Purchaser’s representatives on the Closing Date. From and after the Closing Date, Purchaser shall be responsible for all baggage and property listed in such inventory, and shall
indemnify, defend and hold Seller and the Seller Indemnitees harmless from and against all Losses relating thereto. Seller shall indemnify, defend and hold Purchaser and the Purchaser Indemnitees harmless from and against Losses for baggage and
property not listed in such inventory but shown to have been left in Hotel Operator’s care prior to the Closing Date (other than Losses caused by the gross negligence or willful misconduct of Purchaser or its employees or agents). Seller and
Purchaser shall use commercially reasonable efforts to require Hotel guests with property in safe deposit boxes to execute, during the evening prior to the Closing Date, an acknowledgement of any property left by such guest in Hotel safe deposit
boxes. 

  

 32 

 
The indemnification set forth in this Section 11(g) shall not extend to property set forth in any such acknowledgement (and from and after the
Closing, Seller will have no liability for any property set forth in any such acknowledgement). 
  
 (h) Proration Procedures. 
  
 (i) Not later than 9:00 p.m. Los Angeles time on the third Business Day prior to the scheduled Closing Date, Seller shall prepare and
deliver to Purchaser a draft settlement statement setting forth amounts to be prorated between Seller and Purchaser at the Closing, together with reasonable documentation supporting the information set forth in such settlement statement. The draft
settlement statement shall contain Seller’s good faith estimate of the amounts (based on facts and circumstances then known to Seller), as of the anticipated Proration Time, of real and personal property taxes, room occupancy and use taxes,
utility services, Inventory, Cash on Hand, rents and other amounts payable under the Leases, Tenant Deposits and Booking Deposits not earned, and any other amount to be prorated between Seller and Purchaser, or to be credited to either party,
pursuant to this Agreement. Purchaser shall review the draft settlement statement and, not later than 5:00 p.m. Los Angeles time on the Business Day prior to the scheduled Closing Date, Purchaser shall furnish to Seller any comments which Purchaser
may have with respect thereto, or any objection it may have to the amounts shown thereon, together with its reasons for such objection. Thereafter, Seller and Purchaser (each acting reasonably and in good faith) shall attempt to resolve, prior to
the Closing Date, any disagreement with respect to such draft settlement statement. 
  
 (ii) Seller and Purchaser shall cause the information set forth in the draft settlement statement to be updated with actual information
available as of the Proration Time (and representatives of both Seller and Purchaser shall participate in conducting any necessary inventories and compiling and verifying any necessary information as of the Proration Time (including any utility
meter readings) for purposes of updating such settlement statement). Not later than 9:00 a.m. Los Angeles time on the Closing Date, Seller shall deliver to Title Company and Purchaser a settlement statement for purposes of the Closing (the
“Settlement Statement”), which statement shall include the matters on which Seller and Purchaser have agreed pursuant to Section 11(h)(i), as updated with actual information as of the Proration Time (and, with respect to any
matter on which Seller and Purchaser still disagree as of such time, Seller’s good faith determination of the amount in question as of the Proration Time will be used for purposes of Closing, subject to reconciliation after the Closing pursuant
to Section 11(h)(iii)). The amounts shown in such settlement statement shall be used in determining the amounts due to Seller and Purchaser at the Closing, and Title Company shall rely conclusively thereon in settling the accounts of
Purchaser and Seller. 
  

 33 

 (iii) As soon as reasonably practicable after the Closing (but in no event later than
ninety (90) days after the Closing (except for amounts to be reprorated pursuant to Section 11(b) and under the Reconciliation pursuant to Section 11(e)), Seller and Purchaser (acting reasonably and in good faith) shall reconcile
between themselves, outside of escrow, the amounts to be prorated pursuant to this Agreement, using any updated information with respect to such matters then available. Each party shall provide to the other party reasonable access to the books,
records, computer runs and other documents relating to the Hotel which contain information relevant to completing the final reconciliation. If the final reconciliation of prorations, as agreed to between Purchaser and Seller, shows any amount due
from Seller to Purchaser, or vice versa, the party owing such amount shall pay such amount (in immediately available funds) within five (5) Business Days after reaching agreement on the final reconciliation. 
  
 (iv) If Seller and Purchaser are unable to agree on a final
reconciliation of the amounts to be prorated pursuant to this Agreement within ninety (90) days after the Closing, either party may submit the matter to the Accountant for determination. The Accountant shall review the information presented by
Seller and Purchaser regarding the proration matters on which Seller and Purchaser disagree, and shall determine the matter in a manner consistent with the provisions of this Section 11 as a neutral arbitrator. The Accountant’s
determination shall be binding and conclusive upon both parties and enforceable in any court of competent jurisdiction. Seller and Purchaser each shall pay fifty percent (50%) of the fees, charges and other expenses of the Accountant for making such
determination. If the Accountant’s determination discloses that either Seller or Purchaser owes any sum to the other parry, the party which owes such sum shall pay the full amount thereof within fifteen (15) Business Days after the
Accountant’s determination. 
  
 (i) Basis
of Prorations. For purposes of the foregoing prorations, (i) all prorations shall be made on an actual daily basis, and (ii) all items of revenue and expense with respect to Hotel operations shall be classified and determined in accordance with
the 9th edition of the Uniform System of Accounts for Hotels, published by the American Hotel & Motel Association. 
  
 (j) Employees. 
  
 (1) Seller shall, as of the Closing Date, terminate (or cause Hotel Operator or the Employee Company to terminate) all Hotel Employees as
of the Closing Date. Purchaser shall make offers to rehire, as of the Closing Date, (A) all Hotel Employees covered by any of the Union Contracts and (B) at least 

  

 34 

 
the number of additional Hotel Employees required to be rehired so as not to trigger any notice requirements under the WARN Acts (the “Minimum Offer
Number”). All such offers to rehire shall be for the same or comparable positions or job classifications, and with comparable wages or salary levels and benefits substantially similar in the aggregate for the individual employee as
immediately prior to the Closing Date. Subject to the undertaking to offer employment to the Minimum Offer Number, Purchaser’s determination of whether to extend offers to any Hotel Employees not covered by a Union Contract shall be a matter of
Purchaser’s discretion based on its determination of the Property’s post-Closing staffing needs. Purchaser affirmatively represents and warrants to Seller that, as of the Closing Date, Purchaser intends to make offers to rehire the Minimum
Offer Number of Hotel Employees. Any reference to the Purchaser making offers to rehire or hire Hotel Employees in this Section 11(j)(1) and anywhere else in this Agreement shall be deemed to be satisfied if a designee of Purchaser, including
any manager of the Hotel, makes such offer or is the employer for such purposes, provided that such employer’s identity satisfies any pertinent requirements of any applicable Union Contracts or California or Federal law. Subject to each of the
specific undertakings set forth in this Section 11(j)(1), the terms of any offers to rehire Hotel Employees shall be established by Purchaser. 
  
 (2) Based on the foregoing representations, warranties and covenants, Seller and Purchaser agree that the sale of the Property to
Purchaser will not trigger any notice requirements under the WARN Acts. Therefore, Seller has no obligation to, and does not intend to, provide any WARN Acts notices to the Hotel Employees prior to the Closing Date. Notwithstanding the foregoing,
provided that Seller affords Purchaser written notice of such election not later than five (5) Business Days following the date of this Agreement, (A) Seller may elect to afford such notices if and to the extent that the Hotel Operator
requires or requests such delivery or if any notice requirement otherwise is determined to be applicable to the sale of the Property under the WARN Acts or applicable state law and (B) delay the Closing Date to a Business Day in the future
sufficient to allow the expiration of the statutory sixty (60) day notice period under the WARN Acts, plus two Business Days. 
  
 (3) Seller shall either pay (or cause to be paid), in full, as of the Closing Date all Employee Obligations accrued, vested and unpaid as
of the Proration Time or, to the extent permitted by applicable law, shall afford a full credit to Purchaser in the total amount of any such Employee Obligations that pertain to any Rehired Employees. Effective as of the Closing Date, (x)
Purchaser shall accept and assume the obligations under and be bound by the Union Contracts with Local 1877 of the Service Employees International Union and those Hotel Employees who are members of Local 501 of Operating Engineers/ Painters &
Allied Trades District Council No. 36, (y) Purchaser shall recognize the 

  

 35 

 
unions that are parties to the other Union Contracts as the lawful representatives of any Rehired Employees represented by such unions (provided that
Purchaser shall not be obligated to assume any such other Union Contract and specifically expresses its intent not to assume any such other Union Contracts) and (z) Purchaser shall be responsible for all Employee Obligations with respect to the
Rehired Employees accruing or vesting from and after the Closing Date or for which Purchaser has received the foregoing credit. From and after the Closing Date, Seller shall have no further duty, obligation or liability with respect to any Rehired
Employees (i) under any Legal Requirement governing employment matters accruing from and after the Closing Date, (ii) under any of the Union Contracts in effect with respect to Rehired Employees or with respect to any Employee Obligations with
respect to the Rehired Employees accruing from and after the Closing Date, or (iii) with respect to any Employee Obligations with respect to the Rehired Employees accruing prior to the Closing Date for which Purchaser received a credit against the
Purchase Price, and all of the foregoing matters shall be the responsibility of Purchaser. Seller shall retain all Employee Obligations with respect to (A) any “withdrawal liability” under the Employee Retirement Income Security Act (as
amended from time to time, and any regulations, rulings and guidance issued pursuant thereto) arising as a result of the consummation of the transactions contemplated herein, and (B) Hotel Employees that are not Rehired Employees, including any
severance and COBRA obligations. 
  
 (4) Subject
to the provisions and limitations set forth in Section 12(c), Seller shall indemnify, defend and hold Purchaser and the Purchaser Indemnitees harmless from and against any and all Losses arising from or relating to (x) any violation (or
alleged violation) by Seller of any Legal Requirement governing employment matters, or of any collective bargaining agreement (including the Union Contracts) in effect with respect to Hotel Employees, occurring prior to the Closing Date, and (y) any
claims asserted by any Hotel Employees, any union representing any Hotel Employees, Hotel Operator, Employee Company or another Person, based upon any Employee Obligations accruing (and vesting if such Employee Obligations require vesting) prior to
the Closing Date (other than Employee Obligations for which Purchaser received full credit against the Purchase Price pursuant to Section 11(j)(3) above, which shall be the responsibility of Purchaser), and (C) all Employee Obligations
retained by Seller as provided in Section 11(j)(3) above. 
  
 (5) Purchaser shall indemnify, defend and hold Seller and the Seller Indemnitees harmless from and against any and all Losses arising from or relating to (w) any violation (or alleged violation) of the WARN Acts, any
other Legal Requirement or any Union Contract which sets forth minimum requirements for the number or content of offers of employment to be made to the Hotel Employees, (x) any claims by any Hotel Employee or any union representing any 

  

 36 

 
Hotel Employee based on Purchaser’s determination not to afford an offer for employment (excepting, however, any claims for severance or COBRA or other
Employee Obligations retained by Seller pursuant to Section 11(j)(3) above), (y) any claims asserted by any Rehired Employees, any union representing any Rehired Employees or another Person, relating to or arising from any violation (or
alleged violation) by Purchaser of any Legal Requirement governing employment matters, or of any Union Contract or other collective bargaining agreement in effect with respect to Rehired Employees, occurring on or after the Closing Date, and (z) any
claims asserted by any Rehired Employees, any union representing any Rehired Employees or another Person, based upon any Employee Obligations accruing from and after the Closing Date, or any Employee Obligations accruing prior to the Closing Date
for which Purchaser received full credit against the Purchase Price pursuant to Section 11(j)(3). 
  
 (k) Termination of Management Agreements. Seller shall cause the Management Agreement to be terminated as of the Closing Date and
shall indemnify and hold harmless Purchaser and Purchaser Indemnitees from and against any and all Losses incurred by Purchaser and Purchaser Indemnitees based on the claims of the Hotel Operator or its Affiliates arising out of the termination of
the Management Agreement, the Employee Agreement or the Liquor Agreement (excepting any Hotel costs and expenses constituting Losses which are specifically payable by Purchaser pursuant to the prorations or other provisions of this Agreement).

  
 (n) Survival. The provisions of this
Section 11 shall survive the Closing. 
  
 12.
SELLER’S REPRESENTATIONS AND WARRANTIES. 
  
 (a) Seller hereby represents and warrants to Purchaser that the following are true and correct as of the date hereof, except as otherwise set forth in Exhibit H hereto or as disclosed in any of the Due
Diligence Materials: 
  
 (i) Power and
Authority of Seller. Seller is a limited liability company, duly organized and validly existing in the State of Delaware and has qualified to do business in the State of California. Seller has the requisite right, power and authority to own the
Property, operate the Hotel, sell and convey the Property to Purchaser as provided herein, and has taken all limited liability company action necessary to authorize the execution, delivery and performance of this Agreement. Seller has obtained all
consents and approvals necessary for Seller’s execution, delivery and performance of this Agreement, and the performance by Seller of Seller’s obligations hereunder will not constitute a default under the terms and provisions of any
material agreement, document or instrument to which Seller is a party or by which Seller is bound. 
  

 37 

 (ii) Validity of Agreement. This Agreement constitutes, and all other documents
required by this Agreement to be executed by Seller, shall constitute when so executed, the valid and binding obligation of Seller, enforceable against Seller in accordance with their respective terms, except to the extent that enforcement may be
limited by applicable bankruptcy, insolvency, moratorium and other principles relating to or limiting the rights of contracting parties generally. This Agreement does not conflict with or result in a breach of, or constitute a default under, any
Legal Requirements, any provision of Seller’s organizational or governing documents, or any other agreement, document or instrument to which Seller is a party or by which Seller is bound or result in the creation or imposition of any lien or
encumbrance on the Property or any portion thereof, any of which would materially and adversely affect the ability of Seller to perform its obligations under this Agreement. Seller has obtained all consents, approvals, authorizations or orders of
any court, Governmental Authority or other third party, if any, required for the execution, delivery and performance by Seller of this Agreement and all other documents to be executed and delivered by Seller pursuant to this Agreement. 

 
 (iii) Licenses and Permits and Other Approvals. To
Seller’s actual knowledge, Schedule 6 sets forth a correct and complete list of the Licenses and Permits required by any Governmental Authority for the operation of the Hotel as it is currently being operated or the ownership of the
Property and Seller has delivered to Purchaser or afforded Purchaser access to a true and complete copy of all such the Licenses and Permits in Seller’s Possession or Control. To Seller’s actual knowledge, except as set forth in
Schedule 6, Seller has not received any notice from any Governmental Authority of (1) any violation, suspension, revocation or non-renewal of any Licenses and Permits that has not been cured or dismissed, or (2) any failure by Seller to
obtain any certificates of occupancy, zoning subdivision, building, safety and health approvals or other licenses, permits or entitlements required for the operation of the Hotel or the ownership of the Property that has not been cured or dismissed.

  
 (iv) Hazardous Materials. To
Seller’s actual knowledge, (A) Schedule 5 sets forth a correct and complete list of all property condition and environmental assessments, reports and studies relating to the Property in Seller’s Possession or Control (the
“Environmental Reports”), (B) Seller has delivered to Purchaser a true and complete copy of the Environmental Reports, (C) there are no pending proceedings or inquiries by any Governmental Authority relating to or arising under any
Environmental Laws with respect to the Property, (D) Seller has not received written notice from any Governmental Authority threatening any such proceeding or inquiry and (E) Seller has not received written notice from any Governmental Authority of
an uncured violation of Environmental Laws with respect to the Property. 
  
 (v) Litigation. To Seller’s actual knowledge, (A) there are no pending actions, suits, arbitrations, claims or proceedings, at law or in equity, affecting the Property, Seller’s interest therein, the
operation of the Business or the Hotel Employees 

  

 38 

 
other than as listed on Exhibit H attached to this Agreement, (B) Seller has not received any written notice threatening any such action, suit,
arbitration, claim or proceeding, (C) Seller has not received any court filing, formal written charge or complaint or written request for arbitration, mediation, administrative hearing or similar legal or quasi-legal proceeding with respect to the
Property, Seller’s interest therein, the operation of the Hotel or the Hotel Employees, and no injunction, decree, order, writ or judgment is outstanding with respect thereto. To Seller’s actual knowledge, Seller has provided to Purchaser
all non-privileged, non-work product, written information in Seller’s Possession or Control with respect to any of the proceedings described in the immediately preceding sentences. In the event any of such proceedings described in this
Section 12(a)(v) is initiated prior to Closing, Seller shall advise Purchaser thereof in writing within the earlier of: (A) five (5) Business Days, or (B) the Closing. 
  
 (vi) Legal Requirements. To Seller’s actual knowledge, (A) Seller has not received written notice from any Governmental Authority of a violation of any Legal Requirements with respect to the
Property or the Hotel that has not been cured or dismissed, (B) no such uncured or undismissed violations exist and (C) Seller has not received a written notice from any such Governmental Authority of an investigation into any such potential
violation. To Seller’s actual knowledge, there exists no violation of any Legal Requirements or Licenses and Permits materially affecting the operation of the Property. Notwithstanding the provisions of this Section 12(a)(vi) to the
contrary, as to the Americans With Disabilities Act, as amended, Seller’s representation and warranty is qualified as follows: subsequent to Seller’s acquisition of the Hotel, Seller undertook a full renovation of the Hotel in accordance
with plans and specifications prepared by licensed architects and approved by Governmental Authorities. Following completion of the renovation, the Hotel was inspected by Governmental Authorities and such Governmental Authorities issued to Seller a
final certificate of occupancy with respect to the Hotel, as renovated. As such, Seller’s representation and warranty to its actual knowledge that there exists no violation of the American With Disabilities Act, as amended, is based solely upon
the issuance to Seller of a final certificate of occupancy for the Hotel following the renovation previously undertaken by Seller. 
  
 (vii) Land Use Regulations: Agreements with Governmental Authorities. To Seller’s actual knowledge, there are no pending
condemnation, zoning or other land use proceedings or special assessment proceedings with respect to the Property or the use thereof and Seller has not received written notice from any Governmental Authority threatening any such proceeding. Seller
has not entered into any agreements or commitments with Governmental Authorities that will be binding on the Property after the Closing and which would (A) affect the operations of or the entitlements applicable to the Property, (B) require the
owner of the Property to make improvements to the Property or make dedications or off site improvements for the benefit of adjoining properties, or (C) make additional expenditures with respect to the operation of the Property. 
  

 39 

 (viii) Other Contracts. Seller has not entered into any currently effective
contracts for the sale of the Property, nor, to Seller’s actual knowledge, do there exist any currently effective rights of first refusal or options to purchase the Property. To Seller’s actual knowledge, Seller has not received written
notice of any default or breach under any of the covenants, conditions, restrictions, rights of way or easements affecting the Property including the Declaration of Easements. Seller has delivered to Purchaser a true and complete copy of the St.
Regis Trip Count Agreement, the Parking Agreements and the Chilled Water Agreements. Except as shown on Exhibit H, there are no amendments, modifications, supplements or guarantees to any of such agreements. To Seller’s actual knowledge,
Seller has not received or given any written notice of a default under the terms of any such agreements that has not been cured and no event has occurred or circumstance exists which, with notice or the passage of time, would result in a default by
Seller or the other party thereunder. 
  
 (ix)
Leases. To Seller’s actual knowledge, there are no written leases or occupancy agreements presently in effect and Seller has not entered into any oral leases or occupancy agreements which will affect the Property following the Closing,
except the Bookings and the Leases listed on Schedule 2 attached to this Agreement and except as otherwise may be agreed to in writing by Purchaser prior to the Closing Date. To Seller’s actual knowledge, Seller has delivered to
Purchaser a true and complete copy of all Leases listed on Schedule 2 and Schedule 2 accurately sets forth all the Tenant Deposits under such Leases. Except as shown on Schedule 2 or Exhibit H attached to this Agreement,
to Seller’s actual knowledge: (A) there are no amendments, modifications, supplements or guarantees to said Leases, (B) Seller has not received or given any written notice of default under the terms of any Lease, (C) no event has occurred or
circumstance exists which, with notice or the passage of time, would result in a default by Seller or the other party thereunder, (D) all brokerage, leasing and other commissions and tenant improvement credits or contributions due under any such
Leases have been fully performed and the cost thereof paid and full, (E) the Leases are in full force and effect and there is no dispute with any tenants under any Leases regarding such Leases, (F) none of the Tenant Deposits has been applied
towards the obligations of such party in accordance with the Leases, (G) none of the Tenant Deposits is in the form of a letter of credit or any other form other than cash, and (H) no rent payable under the Leases has been paid by any tenant more
than one (1) month in advance. 
  
 (x) Service
Contracts. To Seller’s actual knowledge, there are no service, supply or maintenance contracts and agreements, license and royalty agreements or other similar agreements for goods or services used in connection with the operation of the
Hotel or the ownership of the Property to which Seller (or Hotel Operator as agent for Seller) is a party which will affect the Property following the Closing and which are not subject to cancellation (without payment of a penalty or cancellation
fee) upon thirty (30) days written notice, except the Union Contracts, the Equipment Leases, the Parking Agreements, the Chilled Water Agreements, Service Contracts constituting Ordinary 

  

 40 

 
Hotel Operations Contracts and the contracts listed on Schedule 3 attached to this Agreement and except as otherwise may be agreed to in writing by
Purchaser prior to the Closing Date, at Purchaser’s discretion. To Seller’s actual knowledge, Seller has delivered to Purchaser a true and complete copy of the Service Contracts listed on Schedule 3 attached to this Agreement.
Except as shown on Schedule 3, to Seller’s actual knowledge, there are no amendments, modifications, supplements or guarantees to the Service Contracts identified on such Schedule. To Seller’s actual knowledge, Seller has not
received or given any written notice of a default under the terms of any such Service Contracts that has not been cured and no event has occurred or circumstance exists which, with notice or the passage of time, would result in a default by Seller
or the other party thereunder. 
  
 (xi) Union
Contracts. To Seller’s actual knowledge, there are no collective bargaining agreements (written or oral) which will affect the Property following the Closing, except the Union Contracts listed on Schedule 4 attached to this
Agreement. To Seller’s actual knowledge, Seller has delivered to Purchaser a true and complete copy of all the Union Contracts listed on Schedule 4. Except as shown on Schedule 4, to Seller’s actual knowledge, there are no
written amendments, modifications, supplements or guarantees to the Union Contracts. Except as set forth on Exhibit H, to Seller’s actual knowledge, Seller has not received or given any written notice of a default under the terms of any
of the Union Contracts that has not been cured and no event has occurred or circumstance exists which, with notice or the passage of time, would result in a default by Seller or the other party thereunder.  
  
 (xii) Equipment Leases. To Seller’s actual
knowledge, there are no leases, purchase money security agreements or similar agreements for any equipment, machinery, vehicles, furniture or other Personal Property to which Seller (or Hotel Operator as agent for Seller) which will affect the
Property following the Closing, except for the Equipment Leases listed on Schedule 1 attached to this Agreement and except as otherwise may be agreed to in writing by Purchaser prior to the Closing Date, at Purchaser’s sole discretion.
To Seller’s actual knowledge, Seller has delivered to Purchaser a true and complete copy of the Equipment Leases listed on Schedule 1. Except as shown on Schedule 1, to Seller’s actual knowledge, there are no amendments,
modifications, supplements or guarantees thereto. To Seller’s actual knowledge, Seller has not received or given any written notice of a default under the terms of any such Equipment Lease that has not been cured and no event has occurred or
circumstance exists which, with notice or the passage of time, would result in a default by Seller or the other party thereunder. 
  
 (xiii) Title to Personal Property. Except as set forth on Exhibit H, to Seller’s actual knowledge, Seller has legal
title to all tangible Personal Property, which shall be free and clear of all liens and encumbrances as of the Closing, other than the lessors’ rights under the Equipment Leases listed on Schedule 1. 
  

 41 

 (xiv) Hotel Employees. To Seller’s actual knowledge, all current Hotel
Employees are employed by the Hotel Operator or the Employee Company pursuant to the Management Agreement and/or the Employee Agreement, respectively. To Seller’s actual knowledge, Seller is not a party to any written employment or compensation
agreement with any of the Hotel Employees other than the Union Contracts, the Management Agreement and the Employee Agreement. Seller has provided Purchaser with a list of Hotel Employees prepared by Hotel Operator at Seller’s request and shall
exercise reasonable and diligent efforts to cause Hotel Operator to update such listing as of the Closing Date. Purchaser acknowledges that Seller must rely upon the Hotel Operator for the preparation and content of such listings and that Seller
shall have no liability for the form or content of such listings, provided that Seller shall include in the Seller’s Certificate delivered pursuant to Section 12(b)(i) a representation, to Seller’s actual knowledge, of the accuracy of any
such listing and Seller’s liability, if any, for the breach of such representation shall be governed by the provisions of Section 12(b) and (c) below. 
  
 (xv) Hypothecation of Rents. None of the rents or other amounts due or to become due under the Leases, none of the Booking Deposits
and none of the room or other charges payable by Hotel guests have been assigned, encumbered or subjected to any liens by Seller (other than liens in favor of Seller’s lender, CR Structured Finance B, L.P., which liens will be released and
terminated as of the Closing). 
  
 (xvi)
Non-Foreign Status. Seller is not a “foreign person” as defined in Section 1445(f)(3) of the Code. 
  
 (xvii) Work-in-Progress. To Seller’s actual knowledge, no construction, repair, remodeling or renovation work is in progress
with respect to the Property, except for in the “Work-in-Progress” described on Schedule 8 attached to this Agreement. Seller has provided Purchaser with true and complete copies of all contracts and agreements in Seller’s
Possession or Control related to such “Work-in-Progress.” 
  
 (xviii) Financial Statements. To Seller’s actual knowledge, the financial statements for the years ended December 31, 2004 and December 31, 2003 and year-to-date financial statements from January through
June 2005 provided to Purchaser with respect to the Hotel have been prepared in accordance with GAAP and the Uniform System of Accounts and present fairly, in all material respects, the operations of the Hotel for the periods covered by such
financial statements, subject to standard year-end adjustments for any year-to-date financial statements. 
  
 (xix) Bankruptcy. Seller has not filed any petition in bankruptcy or other insolvency proceedings or proceedings for reorganization
of Seller or for the appointment of a receiver or trustee for all or any substantial part of the Property, nor has Seller made any assignment for the benefit of its creditors or filed a petition for an arrangement, or 

  

 42 

 
entered into an arrangement with creditors or filed a petition for an arrangement with creditors or otherwise admitted in writing its inability to pay its
debt as they become due. 
  
 (xx) Gift
Certificates. To Seller’s actual knowledge, Schedule 10 sets forth a correct and complete list of all vouchers, coupons or other discounted or free services or accommodations that are outstanding as of the date hereof. 
  
 (xxi) Insurance. To Seller’s actual knowledge,
Schedule 11 sets forth a correct and complete summary of the insurance policies maintained by Seller with respect to the Hotel. To Seller’s actual knowledge, Seller has not received any notice of a breach or default under any such
insurance policy which has not been cured or dismissed, or the cancellation of such insurance policy. 
  
 As used in this Agreement, the term “Seller’s actual knowledge” means the current actual, subjective knowledge of Francis Najafi and Henry Vickers, without independent inquiry or investigation.
Notwithstanding anything to the contrary in this Agreement, information possessed by or known to any Person other than the listed individuals (including the Hotel Operator, Employee Company, Liquor Concessionaire, or Seller’s consultants,
agents and advisors or their respective employees or representatives) shall not be imputed or attributed to Seller or the named individuals. All of the representations and warranties contained herein are qualified by any written disclosures
made to Purchaser by or on behalf of Seller prior to the Closing Date, and (subject to subsection (b) below) by any fact or circumstance discovered by or disclosed to a Purchaser Knowledge Party prior to the Closing Date from any source (including
as a result of Purchaser’s studies, tests, inspections and investigations). As used in this Agreement, the term “Purchaser Knowledge Party” means any of Steven Goldman, Tiffany Leadbetter and Daniel Schor. 
  
 (b) Closing Certificate. 
  
 (i) Seller shall deliver to Purchaser on the Closing Date a
certificate (the “Seller’s Certificate”) updating the representations and warranties set forth in this Section 12 as of the Closing Date. If, however, after the date of this Agreement, Seller obtains actual knowledge
(such term to have the meaning given to “Seller’s actual knowledge” in Section 12(a) above) of any matters which make any of such representations or warranties untrue in any material respect, Seller shall disclose such matters
to Purchaser as promptly as feasible and in any event in the Seller’s Certificate. The effect of (x) the mere passage of time (e.g. the expiration of a contract pursuant to its terms), (y) ordinary course operations of the Hotel permitted in
Section 14 or (z) liabilities which shall remain solely Seller’s pursuant to the terms of this Agreement and not affect the Hotel following the Closing Date shall not be a matter making any representation or warranty untrue in any
material respect. In the event the Seller’s Certificate discloses any 

  

 43 

 
matters which make any of Seller’s representations or warranties untrue in any material respect as of the Closing Date, or in the event that a Purchaser
Knowledge Party otherwise becomes aware prior to the Closing Date of any matters which make any of Seller’s representations or warranties untrue in any material respect (in either case, a “Rep Inconsistency”), then Purchaser
shall elect by written notice to Seller given not later than the earlier of (i) five (5) days after receiving notice of such matter from Seller or Purchaser’s acquisition of knowledge of such matter, or (ii) the Closing Date (a “Rep
Breach Notice”), to (A) waive such matters and complete the purchase of the Property in accordance with the terms of this Agreement or (B) terminate this Agreement; provided, however, that should Purchaser elect to terminate
this Agreement pursuant to this Section 12(b) Seller shall have the right, but not the obligation, to attempt to cure any such Rep Inconsistency, in which event the Closing Date shall be extended by up to twenty (20) days at Seller’s
election in order to permit Seller to attempt such cure. Purchaser’s failure to deliver to Seller the Rep Breach Notice pursuant to this Section 12(b) shall be deemed Purchaser’s election to waive any such Rep Inconsistencies and
complete the purchase of the Property in accordance with the terms of this Agreement. Purchaser’s election or deemed election to Close on the Closing Date notwithstanding such knowledge, discovery or disclosure to or by a Purchaser Knowledge
Party of the untruth of any representation or warranty shall be deemed an unconditional election to waive any right to make any claim on account of such untruth and Seller shall have no liability for any of such matters upon such waiver. Moreover,
if Purchaser is entitled to and elects to terminate this Agreement based on a breach or untruth of any representation or warranty as of the Closing Date, Seller shall be liable (subject, however, to all of the limitations set forth in Section
12(c) below) for the inaccuracy or untruth of a representation or warranty as of the Closing Date, if and only if the breach was duly identified in a Rep Breach Notice and Seller intentionally failed to disclose such untruth or inaccuracy as of
the date of this Agreement or such untruth or inaccuracy as of the Closing Date is caused by Seller’s intentional and material breach of any express covenant set forth in this Agreement. Any Rep Breach Notice from Purchaser to Seller shall set
forth in reasonable detail the character of the Rep Inconsistency breach. In the event this Agreement is terminated pursuant to this Section 12(b), the entire amount of the Deposit shall be returned to Purchaser. Nothing in this Section
12(b) shall limit or be deemed to limit Purchaser’s right to allege a default by Seller pursuant to Section 18(b). 
  
 (ii) Notwithstanding any provision of this Agreement to the contrary, Purchaser specifically acknowledges that, even if such matters might
otherwise represent Rep Inconsistencies or Intervening Title Matters, no 

  

 44 

 
statement or notice from, and no action by, any union (or representative or agent of any union) party to any of the Union Agreements following the date of
this Agreement (relating to the Property) shall be treated as a Rep Inconsistency or an Intervening Title Matter, provided that if any union files a lawsuit or other proceeding and an injunction, temporary restraining order or other similar
equitable relief is granted by a court of competent jurisdiction prior to Closing that has the legal effect of enjoining the Closing, the Closing shall be delayed for thirty (30) days and Seller shall not be in default under this Agreement (other
than to the extent that such action was triggered by and related to Seller’s breach of an express covenant set forth in this Agreement), and (1) Seller shall exercise all commercially reasonable diligent efforts (and Purchaser shall afford
reasonable assistance and collaboration in such efforts), including, without limitation, appearing in such legal proceedings in an effort to terminate such injunction, temporary restraining order or other similar equitable relief within thirty (30)
days after the originally scheduled Closing, and (2) if Seller fails in its attempt to resist such action other legal or equitable proceedings to effect or end such injunction, temporary restraining order or other similar equitable relief within
thirty (30) days after the originally scheduled Closing, either Purchaser or Seller shall have the right to terminate this Agreement, in which event Purchaser shall receive a return of its full Deposit. In the event any such action was taken as a
result of Seller’s breach of an express covenant set forth in this Agreement, Purchaser shall have all rights and remedies under this Agreement relating to such breach. 
  
 (c) Post-Closing Claims. 
  
 (i) Seller’s covenants, indemnities, warranties and representations contained in this Agreement and in
any document executed by Seller pursuant to this Agreement shall survive the Closing or the termination of this Agreement, as set forth in this Agreement for a period commencing on the Closing Date and ending 270 days following the Closing Date;
provided, however, the representations and warranties of Seller set forth in Section 12(a)(i), Section 12(a)(ii), Section 12(a)(xvi) and Section 12(a)(xx) shall survive the Closing Date until the expiration
of the applicable statute of limitations (in each case, the “Limitation Period”). Purchaser shall provide written notice to Seller prior to the expiration of the applicable Limitation Period of any alleged breach of such covenants,
indemnities, warranties or representations and shall allow Seller thirty (30) days within which to cure such breach, or, if such breach cannot reasonably be cured within thirty (30) days, an additional reasonable time period, so long as such cure
has been commenced within such thirty (30) days and 

  

 45 

 
diligently pursued. If Seller fails to cure such breach after written notice and within such cure period, Purchaser’s sole remedy shall be an action at
law for damages as a consequence thereof, which must be commenced, if at all, within the applicable Limitation Period; provided, however, that if within the applicable Limitation Period Purchaser gives Seller written notice of such a
breach and Seller notifies Purchaser of Seller’s commencement of a cure, commences to cure and thereafter terminates such cure effort, Purchaser shall have an additional 30 days from the date of termination of such cure effort within which to
commence an action at law for damages as a consequence of Seller’s failure to cure. The Limitation Period referred to herein shall apply to known as well as unknown breaches of such covenants, indemnities, warranties or representations.
Purchaser’s waiver and release set forth in Section 5(c) shall apply fully to Losses under such representations and warranties. Purchaser specifically acknowledges that such termination of liability as of the close of the Limitation
Period represents a material element of the consideration to Seller. 
  
 (ii) Notwithstanding any provision of this Agreement to the contrary, Seller’s liability following the Closing Date for breach of any covenants, indemnities, representation or warranty with respect to the
Property (other than those set forth in Section 12(a)(i), Section 12(a)(ii), Section 12(a)(xvi) and Section 12(a)(xx)) shall be limited to claims involving Losses to Purchaser in excess of (1) One Thousand Dollars
($1,000) and (2) an aggregate of Two Hundred Thousand Dollars ($200,000) as to all claims; provided, however, if the Losses exceed this amount, Purchaser shall be entitled to indemnification for the entire amount of such claims. Unless and
until Purchaser’s Losses based upon Seller’s breaches of any representations or warranties (other than those set forth in Section 12(a)(i), Section 12(a)(ii), Section 12(a)(xvi) and Section 12(a)(xxii)) reach
such minimum thresholds, Purchaser may not advance any claim based upon such breach. In addition, Seller’s aggregate liability for any and all claims arising out of Seller’s covenants, indemnities, representations and warranties shall not
exceed an aggregate amount of Six Million Dollars ($6,000,000). In computing the aggregate amount of claims for the foregoing purposes, the amount of any claim shall be deemed to be an amount net of any insurance proceeds and any indemnity,
contribution or other similar payments or rights of payment Purchaser actually collects from any third party. 
  
 (iii) Subject to applicable principles of fraudulent conveyance, in no event shall Purchaser seek satisfaction for any obligation from any
shareholders, officers, directors, employees, agents, legal representatives, 

  

 46 

 
successors or assigns of such trustees or beneficiaries, nor shall any such Person have any personal liability for any such obligations of any Seller.

  
 13. PURCHASER’S REPRESENTATIONS AND
WARRANTIES. Purchaser hereby represents and warrants to Seller that the following are true and correct as of the date hereof, which representations and warranties shall be remade as to the Closing pursuant to the closing certificate
described in Section 10(d): 
  
 (a)
Power and Authority of Purchaser. Purchaser is a corporation duly organized and validly existing in the State of Delaware will be as of the Closing Date duly qualified to transact business in the State of California, has the requisite right,
power and authority to purchase the Property from Seller as provided herein, and Purchaser has taken all action necessary to authorize the execution, delivery and performance of this Agreement. Purchaser has obtained all consents and approvals
necessary for Purchaser’s execution, delivery and performance of this Agreement, and the performance by Purchaser of Purchaser’s obligations hereunder will not constitute a default under the terms and provisions of any material agreement,
document or instrument to which Purchaser is a party or by which Purchaser is bound. 
  
 (b) Validity of Agreement. This Agreement constitutes, and all other documents required by this Agreement to be executed by
Purchaser, shall constitute when so executed, the valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with their respective terms, except to the extent that enforcement may be limited by applicable bankruptcy,
insolvency, moratorium and other principles relating to or limiting the rights of contracting parties generally. This Agreement does not conflict with or result in a breach of, or constitute a default under, any Legal Requirements, any provision of
Purchaser’s organizational or governing documents, or any other agreement, document or instrument to which Purchaser is a party or by which Purchaser is bound, any of which would materially and adversely affect the ability of Purchaser to
perform its obligations under this Agreement. Purchaser has obtained all consents, approvals, authorizations or orders of any court, Governmental Authority or other third party, if any, required for the execution, delivery and performance by
Purchaser of this Agreement and all other documents to be executed and delivered by Purchaser pursuant to this Agreement. 
  
 14. CONDUCT OF HOTEL BUSINESS PRIOR TO CLOSING. During the period from the date of this Agreement until the earlier of (i) the Closing Date,
or (ii) the termination of this Agreement: 
  
 (a) Seller shall operate and shall use commercially reasonable efforts to cause Hotel Operator to operate the Property in the ordinary course of business consistent with the past practices of Seller. Notwithstanding the foregoing, without
Purchaser’s prior written approval (which approval shall be given or held in Purchaser’s sole discretion exercised in good faith), Seller shall not amend, renew, modify or terminate 

  

 47 

 
any existing Leases, material Service Contracts, material Equipment Leases, Union Contracts or other agreements affecting the Property or the Hotel,
provided that: 
  

	 	(i)	Seller shall have the right to enter into or amend any Ordinary Hotel Operations Contracts and to accept Bookings and Booking Deposits for periods after the Closing in the ordinary
course of business, and, after the Closing, Purchaser shall honor any such Bookings and Booking Deposits in accordance with their terms; provided, however, (A) Seller shall not (i) transfer or cancel any Bookings scheduled to occur on
or after the Closing Date, other than as requested without solicitation by the guest or customer or otherwise in the ordinary course of business consistent with past practices of Seller, or (ii) accept any Bookings scheduled to occur on or after the
Closing Date other than in the ordinary course of business consistent with past practices of Seller and (B) Purchaser shall have no obligation to honor Bookings made pursuant to Hotel Operator’s rewards programs; and 

 

	 	(ii)	for the foregoing purposes, a new or amended Service Contract or Equipment Lease shall not be treated as “material” unless it requires expenditures of more than
Twenty-Five Thousand Dollars ($25,000) or more or will survive the Closing and is not terminable on thirty (30) days’ notice without penalty or premium. 

  

	 	(iii)	Seller shall have the right to continue good faith bargaining with respect to the currently expired Union Contract with the Hotel and Restaurant Employers Council of Southern
California and the AFL-CIO Laundry and Dry Cleaning International Union, Local No. 52, provided that Seller may not enter into a new or renewed contract with such union without the prior written consent of Purchaser (which approval shall be
given or withheld in Purchaser’s sole discretion exercised in good faith). 

  

	 	(iv)	Notwithstanding the provisions of Section 20(q) below, Seller shall have the right to afford any notices pertaining to the existence or terms of this Agreement as may be required
under any of the Union Contracts, provided that any such notice shall be subject to the prior approval of Purchaser, which approval shall not be unreasonably withheld or delayed (taking into account the deadlines for such notice as set forth in the
Union Contracts). 

  
 Purchaser acknowledges that
the Hotel is managed and operated by Hotel Operator pursuant to the Management Agreement, and that Seller shall be deemed to 

  

 48 

 
have discharged its obligations under this Section 14(a) so long as Seller (A) does not expressly approve any action of Hotel Operator or give
instructions or directions to Hotel Operator which are, in either case, inconsistent with the terms of this Section 14(a) and (B) takes all commercially reasonable actions consistent with its rights under the Management Agreement to ensure
Hotel Operator’s compliance with the foregoing. At all times prior to and at the Closing, Seller shall reasonably cooperate, at no cost or expense to Seller, and shall use commercially reasonable efforts to cause the Hotel Operator reasonably
to cooperate, at no cost or expense to Seller or Hotel Operator, with Purchaser and Purchaser’s employees and representatives to assist in an orderly transition of the operation of the Hotel, including affording reasonable access to the Hotel,
the Books and Records and senior Hotel Employees designated by Hotel Operator to serve in the capacity of liaisons for the transition process. 
  
 (b) Seller shall exercise commercially reasonable efforts to ensure that the Property is operated and maintained in a manner consistent
with past practices and that the existing levels and coverages of insurance listed on Schedule 11 are maintained, and Seller shall not voluntarily cause (whether by Seller’s acts or omissions) any new encumbrance or lien to be recorded
against the Property (other than inchoate mechanics’ liens arising from work performed at the request of Seller and permitted under this Agreement) or intentionally take any action (other than as may be permitted pursuant to this Section) that
would render any of the representations or warranties of Seller set forth in Section 12 to be incorrect in any material respect as of the Closing Date. 
  

(c) Seller shall not, without the prior written consent of Purchaser (which consent shall not be unreasonably withheld or delayed),
make any modifications or alterations to the Real Property other than in the ordinary course of business, and except for modifications and alterations which are the subject of any agreement in effect as of the date of this Agreement. 
  
 (d) Seller shall not sell, convey, assign, encumber or
otherwise transfer the Real Property or any portion thereof or interest therein (except for leases entered into by Seller, or by Hotel Operator as agent for Seller and approved by Purchaser in accordance with Section 14(a)), nor enter into
any agreements to do the same, whether directly or indirectly. 
  
 (e) Except in accordance with the ordinary course of business of the Hotel as described in Section 14(a) above, no material portion of the FF&E, Expendables or Inventory will be removed from the Real
Property without the written consent of Purchaser, unless replaced prior to the Closing Date with FF&E, Expendables or Inventory of comparable or higher quality and value. 
  

 49 

 (f) Seller shall promptly deliver to Purchaser a copy of any notice received by Seller
prior to the Closing Date from, or any notice given by Seller prior to the Closing Date to, (i) any Governmental Authority alleging a violation of any Legal Requirement, or (ii) a party to any Service Contract, Lease, Union Contract, Equipment
Lease, the Management Agreement, the Liquor Agreements, the Employee Agreement, the Parking Agreements, the Chilled Water Agreements alleging a breach or default by Seller under any such document. Seller shall exercise good faith efforts to deliver
to Purchaser any other material notices given or received by Seller during the term of this Agreement from any Governmental Authority or under the enumerated agreements or other agreements affecting the Property (excepting Bookings and Ordinary
Hotel Operations Contracts), provided that Seller shall not be in breach of this Agreement based on a failure to do so notwithstanding such good faith efforts. 
  

15. ESCROW. 
  
 (a) Title Company as Escrow Holder: Instructions. An escrow for the purchase and sale contemplated by this Agreement has been or
will promptly be opened by Purchaser and Seller with Title Company for the delivery of the Deposit to Title Company in accordance with Section 3(a) and for the consummation of the transaction contemplated by this Agreement. On or before the
Closing Date, Seller and Purchaser shall each deliver escrow instructions to Title Company consistent with this Section 15, and the parties shall deposit in escrow the funds and documents described below. 
  
 (b) Deposits into Escrow. 
  
 (i) Seller shall deposit, or cause to be deposited, into
escrow with Title Company, not later than 10 a.m. Los Angeles time on the Closing Date, the items described in Section 9. Title Company shall use the foregoing documents and instruments to Close the transaction contemplated by this Agreement
only if and when: (1) Title Company holds for the account of Seller all sums to be paid by Purchaser to Seller at the Closing; (2) Title Company has received Purchaser’s Closing Documents pursuant to Section 10; and (3) Title Company can
and will issue the Title Policy concurrently with the Closing. 
  
 (ii) Purchaser shall deposit, or cause to be deposited, into escrow with Title Company not later than 10 a.m. Los Angeles time on the Closing Date: 
  
 (1) The balance of the Purchase Price as set forth in Section 3; 
  
 (2) The additional amount, if any, necessary to pay
Purchaser’s share under this Agreement of the closing costs, expenses and prorations of this transaction; and 
  
 (3) Purchaser’s Closing Documents. 
  

 50 

 Title Company is hereby authorized to use said funds, instruments and documents to Close the transaction
contemplated by this Agreement only if and when: (x) Title Company has received the Deed and the other Seller’s Closing Documents pursuant to Section 9; and (y) Title Company is prepared to issue the Title Policy concurrently with the
Closing. 
  
 (c) Close of Escrow. Provided
that Title Company has not then received written notice from Purchaser or Seller of the failure of any condition to the Closing or of the termination of this Agreement, and only if and when Purchaser and Seller have deposited with Title Company the
documents and funds required by this Agreement and Title Company is prepared to issue the Title Policy concurrently with the Closing, Title Company shall: 
  
 (i) Deliver to Purchaser (1) the Deed by causing it to be recorded in the Official Records, and cause the Deed to be mailed to Purchaser
after it has been recorded; and (2) the other Seller’s Closing Documents. 
  
 (ii) Deliver to Seller (1) the Purchase Price, adjusted for the prorations pursuant to Section 11 and any other credits or debits
to the Purchase Price expressly provided in this Agreement; and (2) the Purchaser’s Closing Documents. 
  
 (iii) Deliver to Purchaser any funds deposited by Purchaser, and any interest earned thereon, in excess of the amount required to be paid
by Purchaser hereunder. 
  
 (iv) Issue the Title
Policy to Purchaser. 
  
 (d) Real Estate
Reporting Person. Title Company shall be designated the “real estate reporting person” for purposes of Section 6045 of the Code and regulations promulgated thereunder. Upon consummation of the transaction contemplated by this
Agreement, Title Company shall file a Form 1099 information return and send the statement to Seller as required under the foregoing Code section and regulations. 
  
 16. LIQUOR MATTERS 
  

(a) Seller agrees to transfer and to exercise diligent efforts to cause the Liquor Concessionaire to convey to Purchaser the Liquor
Licenses and all Liquor Inventory situated at the Hotel as of the Closing Date. Purchaser agrees to purchase the Liquor License and the Liquor Inventory, all subject to the terms and conditions set forth herein. The consummation of the purchase and
sale of the Liquor License contemplated by this Agreement (the “Liquor License Escrow”) shall take place concurrently with or as soon as possible after the Closing for the purchase and sale of the Property as described 

  

 51 

 
herein. Not later than three (3) Business Days following the date of this Agreement, Purchaser shall file or cause to be filed with the California Department
of Alcoholic Beverage Control (the “Department”) an application for the transfer of the Liquor Licenses to Purchaser and shall prosecute such application with due diligence and Purchaser and Seller shall open the Liquor License
Escrow with Bank of America (the “Liquor License Escrow Holder”) in accordance with the provisions of the Alcoholic Beverage Control Act and Title 4, California Code of Regulations, to provide for the transfer of the Liquor Licenses
and the Liquor Inventory through the Liquor License Escrow, following approval by the Department of Purchaser’s application for the transfer of the Liquor Licenses. In connection with such transfer and purchase, Purchaser shall deposit into the
Liquor License Escrow a promissory note (the “Liquor License Escrow Note”) in the principal amount of $50,000 payable to the Liquor License Escrow Holder on demand pending the closing of the Liquor License Escrow. Purchaser shall
deposit into the Liquor License Escrow on the Closing Date, in cash, the Liquor Purchase Price (less any amount previously drawn on Liquor License Escrow Note), to be held by Liquor License Escrow Holder pending the closing of the Liquor License
Escrow (and upon the deposit of such cash the Liquor License Escrow Note shall be returned to Purchaser). Purchaser shall use diligent efforts, at Purchaser’s sole expense, to obtain the approval of the applicable Governmental Authorities for
the transfer of the Liquor Licenses and the Liquor Inventory. Seller shall exercise commercially reasonable efforts to cooperate (and shall cause the Liquor Concessionaire to cooperate) with Purchaser in the transfer of the Liquor Licenses.
Purchaser shall pay all fees required by the Department in connection with the transfer of the Liquor Licenses. The Liquor License Escrow shall close or terminate, as applicable, at such time as the Department either approves or disapproves the
application for the transfer of the Liquor Licenses to Purchaser and has notified the Liquor License Escrow Holder of such approval or disapproval. Following the close of the Liquor License Escrow, Purchaser shall comply with all Legal Requirements
regarding the Liquor License and the Liquor Inventory. In the event this Agreement shall be terminated prior to Closing, the Liquor License Escrow shall terminate and any funds deposited therein, including the Liquor Deposit, shall be returned to
Purchaser. Seller agrees in connection with the application for the transfer of the Liquor Licenses to cooperate with Purchaser in supplying information reasonably requested by the Department and executing any necessary documents for filing with the
Department or as otherwise required to be executed or recorded by the Department. Prior to the Closing Date, Seller shall deposit into the Liquor License Escrow a bill of sale (the “Liquor License Bill of Sale”) conveying the Liquor
Licenses and the Liquor Inventory to Purchaser. In accordance with applicable Legal Requirements, upon the close of the Liquor License Escrow, the Liquor License Escrow Holder is instructed to use funds in the Liquor License Escrow to make payment
to creditors for any outstanding amounts owed for the Liquor Licenses and the Liquor Inventory and to invest all funds held in the Liquor License Escrow as Seller shall direct and to pay all interest earned thereon, or any portion thereof not
required to satisfy the claims of creditors of Seller with respect to the Liquor Licenses and the Liquor Inventory whose claims accrued prior to the Closing 

  

 52 

 
Date, to Seller upon the close of the Liquor License Escrow. Purchaser agrees to indemnify, defend and hold Seller harmless from and against any Losses
arising out of Seller’s cooperation with Purchaser prior to the close of the Liquor License Escrow, which indemnity shall survive the Closing. Seller and Purchaser shall execute and deliver to Liquor License Escrow Holder such appropriate
escrow instructions as may be necessary to implement the foregoing provisions. 
  
 (b) Seller shall assist Purchaser in filing an application for a Temporary Retail Permit to Transferee of Licensed Premises (the
“Temporary Permit”) with the Department to permit Purchaser to sell alcoholic beverages at the Hotel prior to the consummation of the Liquor License Escrow and the transfer of the Liquor Licenses. In no event shall Seller be
required to transfer to Purchaser any Liquor Inventory which is located at or held for use in the Hotel unless and until Purchaser has obtained a valid and effective Temporary Permit to operate, completed the transfer of the Liquor Licenses or
obtained another permanent license entitling Purchaser to sell alcoholic beverages at the Hotel. 
  
 (c) Seller’s cooperation with respect to the transfer of the Liquor Licenses (i) shall be at no material cost or expense to Seller,
(ii) shall not expose Seller to any continuing liability with respect to the operation of the Hotel or the sale of alcoholic beverages therefrom after the date of Closing (subject to the provisions of Section 16(d)(ii)(A)), and (iii) shall
not obligate Seller to postpone the date of Closing (subject to the provisions of Section 16(d)(ii)(B)). 
  
 (d) If (i) a Temporary Permit has not been issued as of the date of Closing and (ii) the existing Liquor Licenses have not been
transferred effective as of such date, in each case for any reason whatsoever (excluding solely material defaults by Seller or Purchaser under this Agreement for which the non-defaulting party would have the remedies for such breach afforded under
this Agreement), at Seller’s sole election (exercisable by written notice to Purchaser): 
  
 (A) The Closing shall occur as scheduled, but Seller shall cooperate or cause Liquor Concessionaire to cooperate with Purchaser and afford
Purchaser the right legally to direct and conduct uninterrupted alcoholic beverage sales on the Property under the Liquor Licenses by execution of reasonable and customary liquor assets lease and operational agreements consistent with Department
requirements to be entered into among the parties for a term not to exceed one hundred twenty (120) days after Closing; or 
  
 (B) The Closing Date and Purchaser’s obligation to Close the purchase of the Hotel shall be delayed for a period not to exceed sixty
(60) days. 
  
 In the case of either election, Seller shall continue during the
defined period to cooperate in Purchaser’s efforts to have a Temporary Permit issued and to have the existing Liquor 

  

 53 

 
Licenses transferred to Purchaser in accordance with the terms of this Section. It shall be the sole responsibility and risk of Purchaser, however, to
arrange for such transfer of the Liquor Licenses, the issuance of a Temporary Permit or, in the alternative at Purchaser’s sole election, the issuance to Purchaser of new liquor licenses for the Hotel. If, therefore, at the end of the one
hundred twenty (120) day period described in clause (A) above, such Temporary Permit to operate has not been issued, the existing Liquor Licenses have not been transferred and no new liquor licenses for the Hotel have been issued, the lease and
operational agreements nevertheless shall terminate. Similarly, if at the end of the additional sixty (60) day period described in clause (B) above, Purchaser has not secured such Temporary Permit, the Liquor Licenses have not been transferred and
no new liquor licenses for the Hotel have been issued, the Closing nevertheless shall be consummated in accordance with this Agreement and such issuances shall not be a condition to Purchaser’s obligations; provided, however, that
in the event that such Temporary Permit to operate has not been issued or the existing Liquor Licenses have not been transferred due to non-compliance by Seller with Legal Requirements or Department regulations or Seller’s failure to cooperate
or to cause the Liquor Concessionaire to cooperate with Purchaser, this Agreement shall terminate and Purchaser shall be entitled to the return of the Deposit and all interest accrued thereon. 
  
 17. LOSS BY FIRE, OTHER CASUALTY OR CONDEMNATION. 

 
 (a) If prior to the Closing Date the Property, or any
material part thereof, is destroyed or materially damaged (as defined in Section 17(e), Purchaser shall have the right, exercisable on or before the earlier of (i) fifteen (15) days after receiving written notice of such destruction or
material damage, or (ii) one (1) Business Day prior to Closing Date, either (A) to terminate this Agreement by delivering a Termination Notice, or (B) to accept the Property in its then condition and to proceed with the Closing with a reduction in
the Purchase Price in the amount of the deductible for the applicable insurance coverage. To permit such election, if the Closing Date would otherwise have been fifteen (15) days or fewer following the notice of destruction or material damage, the
Closing Date shall be automatically extended to the sixteenth (16th) day following such notice. Purchaser’s
failure to deliver a Termination Notice on or before the earlier of (x) said fifteen (15) day period, or (y) one (1) Business Day prior to the Closing Date shall be deemed Purchaser’s election to proceed under clause (B) above. If Purchaser
elects (or is deemed to elect) to proceed under clause (B) above, (1) Seller shall not compromise, settle or adjust any claims to such insurance proceeds without Purchaser’s prior written consent (which consent shall not be unreasonably
withheld or delayed), (2) Purchaser shall receive at the Closing an assignment of all of Seller’s rights to any insurance proceeds payable by reason of such destruction or material damage, and (3) Seller shall have no duty or obligation to
repair or restore such destruction or material damage. 
  

 54 

 (b) If prior to the Closing Date there is any non-material damage to the Property,
Purchaser shall accept the Property in its then condition and proceed with the Closing with a reduction in the Purchase Price in the amount of the deductible for the applicable insurance coverage. In such event, (i) Seller shall not compromise,
settle or adjust any claims to such proceeds without Purchaser’s prior written consent (which consent shall not be unreasonably withheld or delayed), (ii) Purchaser shall receive at the Closing an assignment of all of Seller’s rights to
any insurance proceeds payable by reason of such damage, and (iii) Seller shall have no duty or obligation to repair or restore such damage. 
  
 (c) If prior to the Closing Date the Property, or any material part thereof (as defined in Section 17(e)), is subject to a taking
or a threatened taking by a Governmental Authority, Purchaser shall have the right, exercisable on or before the earlier of (i) fifteen (15) days after receiving written notice of such taking, or (ii) one (1) Business Day prior to the Closing Date,
either (i) to terminate this Agreement by delivering a Termination Notice, or (ii) to accept the Property in its then condition and to proceed with the Closing without an abatement or reduction in the Purchase Price. Purchaser’s failure to
deliver a Termination Notice on or before the earlier of (i) said fifteen (15)-day period, or (ii) one (1) Business Day prior to the Closing Date, shall be deemed Purchaser’s election to proceed under clause (ii) above. If Purchaser elects (or
is deemed to elect) to proceed under clause (ii) above, (x) Seller shall not compromise, settle or adjust any claims to such award without Purchaser’s prior written consent (which consent shall not be unreasonably withheld or delayed), (y)
Purchaser shall receive at the Closing an assignment of all of Seller’s rights to any condemnation award payable by reason of such taking (and to the extent that Seller has theretofore received any such condemnation award and not applied the
proceeds thereof to the repair or restoration of the Property, Purchaser shall receive a credit against the Purchase Price for any amounts so received by Seller), and (z) Seller shall have no duty or obligation to repair or restore the portion of
the Property remaining after such taking. 
  
 (d)
If prior to the Closing Date any non-material portion of the Property is subject to a taking or a threatened taking by a Governmental Authority, Purchaser shall accept the Property in its then condition and proceed with the Closing without an
abatement or reduction in the Purchase Price. In such event, (i) Seller shall not compromise, settle or adjust any claims to such award without Purchaser’s prior written consent (which consent shall not be unreasonably withheld or delayed),
(ii) Purchaser shall receive at the Closing an assignment of all of Seller’s rights to any condemnation award payable by reason of such taking (and to the extent that Seller has theretofore received any such condemnation award and not applied
the proceeds thereof to the repair or restoration of the Property, Purchaser shall receive a credit against the Purchase Price for any amounts so received by Seller), and (iii) Seller shall have no duty or obligation to repair or restore the portion
of the Property remaining after such taking. 
  

 55 

 (e) For purposes of this Section 17, damage to the Property or a taking of a
portion thereof shall be deemed to involve a material portion thereof if the reasonably estimated cost of restoration or repair of such damage or the amount of the condemnation award with respect of such taking shall exceed Ten Million Dollars
($10,000,000), or in the case of a taking, such taking has a material adverse effect on the operation of the Hotel, the parking available at the Hotel, or access to the Hotel. 
  
 (g) Seller shall give Purchaser written notice of any taking, threatened taking, damage or destruction of
the Property, promptly after learning of the same. 
  
 18.
DEFAULT. 
  
 (a) Purchaser Default.

  
 (i) IF PURCHASER DEFAULTS IN ITS OBLIGATION
TO CLOSE THE PURCHASE OF THE PROPERTY ON THE CLOSING DATE, SELLER’S SOLE REMEDY (SUBJECT TO THE PROVISO IN SECTION 18(a)(iii)) SHALL BE TO RETAIN THE DEPOSIT AS FULL, AGREED AND LIQUIDATED DAMAGES, AND SELLER’S RETENTION OF THE
DEPOSIT SHALL BE SELLER’S SOLE REMEDY WITH RESPECT TO SUCH PURCHASER DEFAULT. 
  
 (ii) THE PARTIES HERETO EXPRESSLY AGREE AND ACKNOWLEDGE THAT IN THE EVENT OF A DEFAULT BY PURCHASER IN ITS OBLIGATION TO CLOSE THE
PURCHASE OF THE PROPERTY ON THE CLOSING DATE, SELLER’S ACTUAL DAMAGES WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO ASCERTAIN, THAT THE AMOUNT OF THE DEPOSIT REPRESENTS THE PARTIES’ REASONABLE ESTIMATE OF SUCH DAMAGES, AND THAT SUCH
AMOUNT IS NOT UNREASONABLE UNDER THE CIRCUMSTANCES EXISTING AT THE TIME THIS AGREEMENT WAS MADE WITHOUT LIMITING THE GENERALITY OF THE FOREGOING: SELLER WILL INCUR ADMINISTRATIVE COSTS IN THE NEGOTIATION AND REVIEW OF THIS AGREEMENT AND OTHER
DOCUMENTS RELATING TO THIS TRANSACTION, AND WILL INCUR DAMAGES BY WITHDRAWING THE PROPERTY FROM THE OPEN MARKET. THE PAYMENT OF SUCH AMOUNTS AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE
SECTIONS 3275 OR 3369. 
  
 (iii) IF PURCHASER
DEFAULTS IN ITS OBLIGATION TO CLOSE THE PURCHASE OF THE PROPERTY ON THE CLOSING DATE AND TITLE COMPANY THEN HOLDS ANY PORTION OF THE DEPOSIT THEN, PROMPTLY UPON RECEIPT OF A WRITTEN NOTICE FROM SELLER (A COPY OF WHICH NOTICE SELLER SHALL SEND TO
PURCHASER), TITLE COMPANY (NOTWITHSTANDING ANY CONFLICTING INSTRUCTION THAT PURCHASER 

  

 56 

 
MAY DELIVER TO TITLE COMPANY BUT SUBJECT TO TITLE COMPANY’S LEGAL RIGHTS OF INTERPLEADER) SHALL DISBURSE TO SELLER, IN IMMEDIATELY AVAILABLE FUNDS, SUCH
AMOUNT THEN HELD BY TITLE COMPANY. SELLER SHALL HAVE NO OTHER REMEDY AT LAW FOR PURCHASER’S DEFAULT IN ITS OBLIGATION TO PURCHASE THE PROPERTY ON THE CLOSING DATE, PROVIDED THAT THE PROVISIONS OF THIS SECTION 18(a) SHALL NOT LIMIT
ANY OF SELLER’S (A) EQUITABLE RIGHTS OR REMEDIES AGAINST PURCHASER FOR BREACH OF THIS AGREEMENT OR (B) RIGHTS AND REMEDIES AGAINST PURCHASER ARISING OUT OF PURCHASER’S INDEMNITY, RESTORATION OR CONFIDENTIALITY OBLIGATIONS CONTAINED IN THIS
AGREEMENT. 
  
 SELLER’S
INITIALS:                                      
               PURCHASER’S INITIALS:
                                     
  
 (b). Seller Default. 
  
 (i) If Seller should default under this Agreement on or
prior to the Closing Date, then, Purchaser, as its remedy for such default, shall have the right: 
  
 (A) to terminate the Agreement, receive a return of the Deposit, in which case the Deposit shall be returned to Purchaser pursuant to
Section 3, and recover monetary damages from Seller, up to an aggregate maximum amount of Six Million Dollars ($6,000,000) plus Purchaser’s actual out-of-pocket third-party expenses incurred directly in connection with the negotiation of
this Agreement and the conduct of due diligence and other activities preparatory to the consummation of the transaction contemplated by this Agreement, provided that Purchaser shall be deemed to have elected to receive back solely the Deposit
and no further damages if Purchaser fails to file an action for damages against Seller in a court having jurisdiction in the county and state in which the Property is located, on or before sixty (60) days following the date upon which Closing was to
have occurred; 
  
 (B) to proceed to Closing, in
which case Purchaser shall be deemed to have waived such default upon the earlier of the consummation of the Closing or Purchaser’s prior written confirmation of the waiver of the identified default (which Seller shall have the right to require
of Purchaser in any event in connection and concurrent with any Closing); or 
  
 (C) seek specific performance of this Agreement (which may include a claim for (i) attorneys fees and costs incurred should Purchaser be
the prevailing party in such action for specific performance plus (ii) up to One Million Dollars (($1,000,000) of any other verifiable out-of-pocket costs or expenses paid to an unaffiliated third party suffered by Purchaser based directly on
Seller’s default), provided that Purchaser (x) first shall have 

  

 57 

 
deposited all documents and funds required of Purchaser pursuant to Section 10 and shall have been (and shall continue to be) ready, willing and able to
perform under this Agreement, (y) Purchaser shall be deemed to have waived its right to pursue specific performance if Purchaser fails to file a suit for specific performance against Seller on or before sixty (60) days following the scheduled
Closing Date and (z) Purchaser acknowledges and agrees that if Purchaser files an action for specific performance and it is subsequently determined that such action for specific performance was wrongfully or improperly filed, Seller will be
materially damaged as a result thereof and shall be entitled to any actual damages as Seller may suffer as a result of such action. Purchaser shall not have, and hereby waives, absolutely and irrevocably, the right to record a notice of pendency of
action affecting the Real Property except in connection with a specific performance action permitted pursuant to the provisions of this Section. 
  
 In no event shall Sellers be liable to Purchaser for any consequential or punitive damages based upon any breach of this Agreement, including breaches of
representation or warranty. Subject to applicable principles of fraudulent conveyance, in no event shall Purchaser seek satisfaction for any obligation from any shareholders, officers, directors, employees, agents, legal representatives, successors
or assigns of such trustees or beneficiaries, nor shall any such Person have any personal liability for any such obligations of any Seller. Notwithstanding the foregoing, if Seller should fail to maintain assets as, when and in the amount required
to cover any claims of Purchaser based on Seller’s breach of this Agreement for which Seller is liable under this Agreement, Buyer shall have the right to proceed against the members of Seller and, to the extent of any deficits in the assets of
such members, their respective upstream beneficial owners, (A) to the extent of any such deficit in the assets of Seller and (B) pro rata among such members or owners based on the assets of Seller distributed to such member or owner, in all cases
subject to all the limitations in character, time and amount applicable to any claim against Seller. 
  
 (ii) If Purchaser’s termination of this Agreement is based on a breach or untruth of any representation or warranty or a breach of
any covenant in this Agreement other than Seller’s obligations to effect the Closing set forth in Section 9, (A) any claim for damages upon such termination based on a breach of representation and warranty or covenant shall be subject to the
additional limitations set forth in Section 12(c) above and (B) Seller shall bear no liability beyond return of the Deposit and recovery of its actual out-of-pocket third-party expenses unless (1) the inaccuracy or untruth of the
representation or warranty as of the Closing Date was duly identified in a Rep Breach Notice and Seller intentionally failed to disclose such untruth or inaccuracy as of the date of this Agreement or such untruth or inaccuracy as of the Closing Date
was caused by 

  

 58 

 
Seller’s intentional and material breach of any express covenant set forth in this Agreement or (2) the breach of the material covenant by Seller was
intentional and material. In the event of either clause (1) or (2) immediately above, Purchaser shall have the remedies available to it in Section 18(b)(i). 
  
 19. BROKERS. Purchaser represents and warrants to Seller that Purchaser has not entered into an agreement with
or incurred any obligation to any finders, brokers or agents in connection with the transaction contemplated by this Agreement, and Purchaser shall indemnify, defend and hold Seller and the Seller Indemnitees harmless from and against any and all
Losses relating to claims for brokerage commissions, finder’s fees or other compensation payable in connection with the transaction contemplated by this Agreement resulting from the acts or omissions of Purchaser. Seller represents and warrants
to Purchaser that Seller has not entered into an agreement with or incurred any obligation to any finders, brokers or agents in connection with the transaction contemplated by this Agreement excepting Eastdil Realty, and Seller shall indemnify,
defend and hold Purchaser and the Purchaser Indemnitees harmless from and against any and all Losses relating to claims for brokerage commissions, finder’s fees or other compensation payable in connection with the transaction contemplated by
this Agreement resulting from Eastdil Realty or any other acts or omissions of Seller. Nothing in this Agreement shall be construed to confer any third-party benefit on broker or any other person not a party hereto with respect to this Agreement.
The provisions of this Section 19 shall survive the Closing or termination of this Agreement. 
  
 20. MISCELLANEOUS. 
  
 (a) Waiver of Performance. Either party may waive the satisfaction or performance of any conditions or agreements in this Agreement
which have been inserted for its own and exclusive benefit, so long as the waiver is in writing specifying the waived condition or agreement and is delivered to the other party hereto and to the Title Company. 
  
 (b) Section Headings; Exhibits. The headings in this
Agreement are for reference purposes only and shall not be used for limiting or interpreting the meaning of any provision. All exhibits and schedules attached to this Agreement are incorporated herein by this reference. 
  
 (c) Notices. All notices, consents or other
communications to be delivered pursuant to this Agreement shall be in writing and shall be deemed delivered and received when made in writing and transmitted by personal delivery, legible and confirmed telecopy transmission (if followed immediately
by delivery by another means permitted under this Section 20(c)), recognized overnight courier service or United States Postal Service registered or certified mail, return receipt requested, postage prepaid, addressed to the respective
parties as follows (and/or to such other address(es) as a party may from time to time designate in writing): 
  

			
	If to Purchaser:	  	c/o Hyatt Hotels Corporation
	 	  	71 South Wacker Drive
	 	  	Chicago, Illinois 60606
	 	  	Telecopy No. (312) 780-5281
	 	  	Attn: Mr. Steven R. Goldman, and
	 	  	          General Counsel

  

 59 

			
	With a copy to:	  	Kirkland & Ellis LLP
	 	  	200 East Randolph Drive
	 	  	Chicago, Illinois 60601
	 	  	Telecopy No. (312) 861-2200
	 	  	Attn: Stephen G. Tomlinson, P.C.
	 	  	          and Gary E. Axelrod, Esq.
		
	If to Seller:	  	c/o AEW Capital Management L.P.
	 	  	World Trade Center East
	 	  	Two Seaport Lane
	 	  	Boston, Massachusetts 02210-2021
	 	  	Telecopy No. (617) 261-9555
	 	  	Attention: Henry Vickers
		
	With a copy to:	  	c/o Pivotal Group, Inc.
	 	  	The Esplanade, Suite 700
	 	  	2555 East Camelback Road
	 	  	Phoenix, Arizona 85016
	 	  	Telecopy No. (602) 956-2311
	 	  	Attention: J. Jahm Najafi
		
	With a copy to:	  	Heller Ehrman White & McAuliffe LLP
	 	  	333 Bush Street
	 	  	San Francisco, California 94104
	 	  	Telecopy No. (415) 772-6268
	 	  	Attention: Brian Smith
		
	If to Title Company:	  	Lawyers Title Insurance Corporation
	 	  	The Esplanade
	 	  	Suite 700
	 	  	2425 East Camelback Road
	 	  	Phoenix, Arizona 85016
	 	  	Telecopy No. (602) 954-7006
	 	  	Attention: Judy Sorenson

  

 60 

 Any such notice, consent or other communication shall be deemed delivered and received upon actual delivery or attempted
delivery (as evidenced by receipt), or upon completion of telecopy transmission (as evidenced by telecopier confirmation sheet). 
  
 (d) Notice of Termination. Whenever any party has the right to terminate this Agreement, such party shall give written notice to
the other party and to Title Company that it has elected to do so (a “Termination Notice”). Upon the delivery of a Termination Notice which a party is entitled to give under the terms of this Agreement, this Agreement shall
terminate, the Deposit shall be returned to Purchaser (except that, in the circumstances described in Section 18(a), the Deposit shall be retained by Seller as liquidated damages), and any other money or documents then held by Title Company
shall be returned to the party depositing the same, and neither party shall have any further rights, obligations or liabilities under this Agreement, except as expressly set forth in this Agreement. 
  
 (e) Amendments. This Agreement may be amended only by
written agreement signed by both of the parties hereto. 
  
 (f) Time of the Essence. All times provided for in this Agreement for the performance of any act will be strictly construed, time being of the essence. 
  
 (g) Counterparts. This Agreement may be executed in
any number of counterparts and by each party on separate counterparts, each of which when executed and delivered shall be deemed an original and all of which when taken together shall constitute one and the same instrument. 
  
 (h) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REFERENCE TO ITS CONFLICT-OF-LAW RULES AND PRINCIPLES. 
  
 (i) Attorneys’ Fees and Costs. In any action or proceeding between the parties hereto seeking the enforcement or
interpretation of any of the terms or provisions of this Agreement, the successful or prevailing party shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses and its reasonable attorneys’ fees,
charges and expenses actually incurred. For purposes of this Agreement, the term “attorneys’ fees, charges and expenses” (and words of similar import) means the fees and expenses of counsel to a party hereto, which may include
expenses of investigation, printing, imagining, word or data processing, duplicating and other expenses, facsimile, air freight charges, and fees billed for law clerks, paralegals and other persons not admitted to the bar but performing services
under the supervision of an attorney, and the costs and fees incurred in connection with appellate proceedings, the enforcement or collection of any judgment obtained in any such proceeding, and any case or proceeding under the United States
Bankruptcy Code. 
  

 61 

 (j) Entire Agreement. This Agreement, and the documents to be executed and
delivered by Seller and Purchaser at the Closing, contain the entire agreement and understanding of the parties with respect to the transaction contemplated by this Agreement, and supersede any and all oral or written agreements between the parties
hereto regarding the Property which are prior in time to this Agreement. Neither Purchaser nor Seller shall be bound by any prior understanding, agreement, promise, representation, warranty or stipulation, express or implied, not specified herein.

  
 (k) Further Assurance. Purchaser and
Seller agree to take, or cause to be taken, all actions, to do, or cause to be done, all things necessary, proper or advisable, including executing all documents and instruments reasonably required, to consummate the purchase and sale contemplated
by this Agreement, provided that no such action or execution of documents or instruments shall increase or otherwise modify or affect the duties or obligations of the parties hereto. 
  
 (l) Successors and Assigns. This Agreement shall be
binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. Notwithstanding the foregoing, neither party may assign or transfer this Agreement or any interest herein without the prior written consent of the other
party (which consent may be withheld in the sole discretion of the non-assigning party). Notwithstanding the foregoing sentence, Purchaser may, provided that Purchaser provides to Seller the full legal name of its assignee at least four (4) Business
Days prior to the Closing Date, assign this Agreement and any of the rights or obligations of Purchaser to (A) an entity directly or indirectly controlled by, in control of, or under common control with Purchaser, or (B) an entity for whom Purchaser
or an Affiliate shall be engaged to manage the Hotel from and after the Closing, provided that, in either case (i) the entity to which Purchaser assigns this Agreement assumes in writing, for the benefit of Seller, all of Purchaser’s
obligations and liabilities under this Agreement, (ii) the proposed assignee ratifies, for the benefit of Seller, all of the representations, warranties and covenants of Purchaser set forth in this Agreement, and (iii) Purchaser shall not be
released from its obligations under this Agreement unless and until the Closing occurs. Further, if Purchaser wishes to so assign this Agreement, Purchaser shall deliver to Seller, for informational purposes only, reasonable information regarding
the principal investors, partners or participants comprising the assignee (which information Seller agrees not to disclose to third parties other than its Affiliates). 
  
 (m) Severability. If any term or provision of this Agreement is held to be unenforceable by a court
of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect to the fullest extent permitted by law. 
  
 (n) Authority. Each individual executing this Agreement on behalf of Seller or Purchaser represents and warrants that he or she is
duly authorized to execute and deliver this Agreement on behalf of such entity. 
  

 62 

 (o) Construction of Agreement. The language in all parts of this Agreement shall
be construed in all cases simply according to its fair meaning and not strictly for or against any of the parties hereto. As used in this Agreement, the term “Seller” shall include the respective successors and permitted assigns of
Seller, and the term “Purchaser” shall include the successors and permitted assigns of Purchaser. 
  
 (p) Business Days. If the date on which or by which any action is required to be taken pursuant to the terms hereof is not a
Business Day, then such action need not be taken on such date or by such date, but may be taken on or by the next succeeding Business Day with the same force and effect as if taken on or by such date. For the purposes hereof, “Business
Day” shall mean any day other than (i) Saturday or Sunday or (ii) a day on which commercial banks in Los Angeles, California are authorized or required by applicable law or executive order to close. 
  
 (q) Confidentiality. Subject to the provisions of
Section 2.4(a) above, Purchaser and Seller agree to maintain the confidentiality of (i) all information in respect of the Property or the sale as contemplated in this Agreement that is not public information, (ii) the existence of the transaction
contemplated by this Agreement and the terms thereof, and (iii) the results of any inspections, studies or tests performed by Purchaser in connection with its inspection of the Property; excepting only disclosure to its (or its Affiliates’)
respective directors, officers, employees, advisors, investors, agents, lenders and consultants to the extent necessary to conduct its investigations and perform its obligations hereunder or as otherwise required by law; no other disclosure of any
such information shall be made except in compliance with the provisions of any separate written confidentiality agreement which the parties may, or may not, enter into in the future. Except as may be required by applicable laws or the applicable
rules and regulations of any Governmental Authority or stock exchange, neither Seller nor Purchaser shall issue any press release, public statement or other such publicity without the prior written review and consent of the other party. The
undertakings of Purchaser and Seller under this Section subsection (q) shall extend to all Affiliates of Purchaser and all agents, employees, advisors, consultants and prospective lenders of Purchaser who receive any information with respect to the
Hotel or the transaction contemplated by this Agreement (it being understood that Purchaser will inform such recipients of the confidential nature of such information and shall direct such recipients to treat such information as confidential). The
obligations of Seller under this Section subsection (q) shall extend to all Affiliates of Seller.  
  
 (r) Waiver of Jury Trial. SELLER AND PURCHASER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY OF THE DOCUMENTS TO BE EXECUTED AND DELIVERED AT THE CLOSING, OR ANY DEALINGS BETWEEN THEM RELATING TO THE PURCHASE AND SALE OF THE PROPERTY. The scope of this waiver is intended 

  

 63 

 
to be all-encompassing of any and all disputes that may be filed in any court and that relate to the subject matter of this transaction, including contract
claims, tort claims, and all other common law and statutory claims. Seller and Purchaser acknowledge that this waiver is a material inducement to enter into this Agreement, that each has already relied on the waiver in entering into this Agreement,
and that each will continue to rely on the waiver in their related future dealings. Seller and Purchaser each represent and warrant to the other that each has reviewed this waiver with its legal counsel, and that each knowingly and voluntarily
waives its jury trial rights following consultation with legal counsel. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER APPLIES TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT OR THE DOCUMENTS TO BE EXECUTED AND DELIVERED AT THE CLOSING. In the event of litigation, this Agreement may be filed as a written consent to a trial by the court. 
  
 (s) No Joint Venture. Nothing contained in this
Agreement shall be deemed or construed to create any partnership, joint venture or other relationship between Seller and Purchaser (other than the relationship of seller and purchaser). No term or provision of this Agreement is intended to be, or
shall be, for the benefit of any Person other than Seller and Purchaser. 
  
 (t) Submission of Agreement. The submission of this Agreement to Purchaser or its brokers, agents or attorneys for review shall not be deemed an offer to sell the Property to Purchaser, and no agreement with
respect to the purchase and sale of the Property shall exist unless and until this Agreement is executed and delivered by both Seller and Purchaser. 
  

 64 

 IN WITNESS WHEREOF, Seller and Purchaser have caused their duly authorized representatives to execute
this Agreement as of the date first above written. 
  

							
	SELLER:
	
	PIVOTAL CENTURY PLAZA HOTEL, L.L.C.
		
	By:	 	 Pivotal CPH I L.L.C.

	 	 	 Its Administrative Member

		
	By:	 	 Pivotal Group X, L.L.C.

	 	 	 Its Managing Member

	 	 	 	 	 	 	 
			
	 	 	By: 	 	 F. Francis Najafi, Trustee of the F.

	 	 	 	 	 Francis Najafi Family Trust

	 	 	 	 	 Its Administrative Member

	 	 	 	 	 	 	 
				
	 	 	 	 	By: 	 	 /s/ Francis Najafi

	 	 	 	 	 	 	 F. Francis Najafi,

	 	 	 	 	 	 	 Its Trustee

	
	PURCHASER:
	
	 HYATT DEVELOPMENT CORPORATION,
 a Delaware corporation

		
	By:	 	/s/ Habib M. Enayetullah
	 Name:
	 	 Habib M. Enayetullah

	 Is:
	 	 Vice President

  

			
	ACKNOWLEDGED AND AGREED
	
	TITLE COMPANY:
	
	LAWYERS TITLE INSURANCE COMPANY
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 65

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