Document:

Exhibit 10.49

 

JOINDER AND SUPPLEMENT AGREEMENT

 

This JOINDER AND
SUPPLEMENT AGREEMENT (this “Joinder Agreement”) dated as of August 25, 2005,
is made and executed by Douglas Emmett 2002, LLC, a limited liability company
organized under the laws of the State of Delaware (the “Borrower”) and DEG,
LLC, a limited liability company organized under the laws of the State of
Delaware (the “Co-Borrower”), and is made with reference to and is
attached to that certain Loan Agreement dated as of August 25, 2005 (as Modified
from time to time, the “Loan Agreement”) by and among the Borrower, the lenders
from time to time party thereto (the “Lenders”) and Eurohypo AG, New
York Branch, as agent for the Lenders (together with its successors and
assigns, the “Administrative Agent”). Capitalized terms used herein and
not otherwise defined have the meanings ascribed to such terms in the Loan
Agreement.

R E C I T A L S

 

WHEREAS, the Co-Borrower is the owner of certain
fee and leasehold interests in the Harbor Court Project (as such term is
defined in the Supplement to Joinder Agreement which is attached hereto and
forms a part hereof (the “Joinder Supplement”)) and the owner of certain
fee and leasehold interests in the Bishop Street Project (as such term is
defined in the Joinder Supplement) (the Co-Borrower’s right, title and
interests in and to the foregoing projects is referred to herein collectively
as the “Co-Borrower Projects”); and

 

WHEREAS, a portion of the proceeds of the
Loans will be used to repay certain indebtedness of the Co-Borrower secured by
the Co-Borrower Projects and otherwise to benefit Co-Borrower and the
Co-Borrower Projects; and

 

WHEREAS, the Borrower owns a ninety-eight
percent (98%) interest in the Co-Borrower, and the Co-Borrower will benefit
from the provision of credit to the Borrower and the Co-Borrower on the terms
set forth in the Loan Agreement and the other Loan Documents.

 

NOW,
THEREFORE, THE BORROWER AND THE CO-BORROWER HEREBY AGREE AS FOLLOWS FOR THE
BENEFIT OF THE ADMINISTRATIVE AGENT AND THE LENDERS:

 

1.                                       Joinder
and Assumption by the Co-Borrower. The Co-Borrower acknowledges and agrees
to the terms, conditions and provisions of the Loan Agreement and the other
Loan Documents (as supplemented by this Joinder Agreement and the Joinder
Supplement); agrees to become a co-borrower under the Loan Agreement and the
other Loan Documents (as supplemented by this Joinder Agreement and the Joinder
Supplement) with liability thereunder (subject to the terms of the Loan
Agreement, including, without limitation, Section 14.23 of the Loan
Agreement) joint and several with the Borrower; assumes, on a joint and several
basis with the Borrower, all of the agreements, acknowledgements, liabilities,
indemnities and obligations of the “Borrower” under the Loan Agreement and the
other Loan Documents (as supplemented by this Joinder Agreement and the Joinder
Supplement); makes all of the representations and warranties of and grants all
of the rights, remedies and waivers granted by the “Borrower” under the Loan
Agreement and the other Loan Documents; agrees that the Administrative Agent
and the Lender, shall have, with respect to the Co-Borrower and the

 

1

 

Co-Borrower Projects, all of
the rights, remedies, powers, privileges and immunities which they have with
respect to the Borrower and the Projects under the Loan Agreement and the Loan
Documents; and the Borrower and the Co-Borrower hereby acknowledge that the
effectiveness of the Commitments and the obligations of the Lenders to make the
Loans to the Borrower and the Co-Borrower are subject to conditions precedent
with respect to the Co-Borrower and the Co-Borrower Projects which are exactly
the same as those which apply to the Borrower and the Projects; IN EACH OF THE
FOREGOING CASES, as if (A) each reference in the Loan Agreement and the other
Loan Documents to the “Borrower” or any “Borrower Party” or “Borrower Parties”
(except (i) references to such terms contained in the definitions in Section
1.01 of the Loan Agreement, (ii) references to such terms contained in Loan
Documents to which Co-Borrower is not a party and (iii) as otherwise expressly
provided to the contrary in any of the Loan Documents), shall include, in
addition to the parties named therein, the Co-Borrower, jointly and severally
with the Borrower; (B) each reference in the Loan Agreement and the other Loan
Documents to any “Project” (including, without limitation, in any defined term
therein, but excluding references to such term contained in Loan Documents to
which Co-Borrower is not a party or as otherwise expressly provided to the
contrary in any of the Loan Documents) shall, where the applicable context
requires, mean and include both each Project and each Co-Borrower Project; and
(C) each reference in the Loan Agreement and the other Loan Documents
(including, without limitation, any defined term therein) to any Loan Document
shall mean any applicable Loan Document to which the Borrower or the
Co-Borrower is a party, if any. The Co-Borrower further agrees that an “Event
of Default” shall occur with respect to the Co-Borrower if any Event of Default
as defined in Article XII of the Loan Agreement shall occur with respect
to the Borrower or shall occur as if each reference to the “Borrower” contained
in such Article XII included both the Borrower and the Co-Borrower,
individually and collectively. The Borrower agrees that it has joint and
several liability for all of the Obligations of the Co-Borrower under the Loan
Agreement, as supplemented by this Joinder Agreement and the Joinder
Supplement, and the other Loan Documents.

 

2.                                       California
Civil Code Section 2954.10 Waiver. By initialing this provision where
indicated below, the Co-Borrower hereby makes each of the acknowledgments set
forth in Section 2.06(d) of the Loan Agreement. By initialing this
provision where indicated below, the Co-Borrower waives any rights it may have
under California Civil Code Section 2954.10, or any successor statute, and the
Co-Borrower confirms that the Lenders’ agreement to make the Loans at the
interest rate and on the other terms set forth in the Loan Agreement
constitutes adequate and valuable consideration, given individual weight by the
Co-Borrower, for the prepayment provisions set forth in Section 2.06 of
the Loan Agreement and hereby waives its rights under California Civil Code
Section 2954.10 as set forth in Section 2.06(d) of the Loan Agreement.

 

	
   

  	
   

  	
   

  
	
   

  	
  Co-Borrower’s Initials

  	
   

  

 

3.                                       Execution
and Delivery of Documents by the Co-Borrower. The Borrower and the
Co-Borrower shall jointly and severally execute the Notes for each Lender, each
of which shall evidence the Loans made by such Lender to the Borrower and the
Co-Borrower collectively. The Co-Borrower shall deliver to the Administrative
Agent those documents referred to in Sections 6.01(c), (d), (e),
(f), (g), (i), (j), (s), and (w) of
the Loan

 

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Agreement with respect to the Co-Borrower,
in each case in form and substance satisfactory to the Administrative Agent.

 

4.                                       Joinder
Supplement. The provisions set forth in the Supplement to Joinder Agreement
attached hereto as Exhibit A are made a part hereof and incorporated by
reference herein.

 

5.                                       Suretyship
Provisions.

 

5.1                                 Definitions
and Background. The parties to this Joinder Agreement each acknowledges and
agrees that the intention of the parties is that both the Borrower and the
Co-Borrower shall be direct, primary, joint and several obligors with respect
to all Obligations. However, in the event that for any reason either the
Borrower or the Co-Borrower (in such event, such party is referred to herein as
the “Secondary Obligor”) is held or deemed to be a guarantor of or
surety for the payment and performance of the obligations of the other (in such
event, such other party is referred to herein as the “Primary Obligor”)
under this Agreement, the Loan Agreement or any of the other Loan Documents
(such obligations are collectively referred to herein as the “Primary
Obligor Obligations” and all documents evidencing, securing or relating to
the Primary Obligor Obligation are referred to herein as the “Primary
Obligor Documents”), the Primary Obligor and Secondary Obligor hereby agree
as follows.

 

5.2                                 Rights
of the Administrative Agent and Lenders. Without modifying or otherwise limiting
any of the Primary Obligor’s rights under the Loan Agreement or the other Loan
Documents with respect to any or all of the following acts, the Secondary
Obligor authorizes the Administrative Agent and the Lenders to perform any or
all of the following acts at any time in their sole discretion, all without
notice to the Secondary Obligor and without affecting the rights of the
Administrative Agent or the Lenders or the Secondary Obligor’s obligations
under the Loan Agreement and the Loan Documents:

 

(a)                                  The
Administrative Agent or the Lenders may alter any terms of the Primary Obligor
Obligations or any part thereof, including renewing, compromising, extending or
accelerating, or otherwise changing the time for payment of, or increasing or
decreasing the rate of interest on, the Primary Obligor Obligations or any part
thereof.

 

(b)                                 The
Administrative Agent or the Lenders may take and hold security for the Primary
Obligor Obligations, accept additional or substituted security therefor, and
subordinate, exchange, enforce, waive, release, compromise, fail to perfect and
sell or otherwise dispose of any such security.

 

(c)                                  The
Administrative Agent or the Lenders may direct the order and manner of any sale
of all or any part of any security now or later to be held for the Primary
Obligor Obligations, and the Administrative Agent or the Lenders may also bid
at any such sale.

 

(d)                                 The
Administrative Agent or the Lenders may apply any payments or recoveries from
the Primary Obligor, the Secondary Obligor or any other source, and any
proceeds of any security, to the Primary Obligor Obligations in such manner,
order and priority as the Administrative Agent or the Lenders may elect.

 

3

 

(e)                                  The
Administrative Agent or the Lenders may release the Primary Obligor from its
liability for the Primary Obligor Obligations or any part thereof.

 

(f)                                    The
Administrative Agent or the Lenders may substitute, add or release any one or
more guarantors or endorsers.

 

5.3                                 Obligations
of Secondary Obligor to be Absolute. The Secondary Obligor expressly agrees
that, until all Obligations have been paid and performed in full, the Secondary
Obligor shall not be released by or because of:

 

(a)                                  Any
act or event which might otherwise discharge, reduce, limit or modify the
Secondary Obligor’s obligations under the Loan Agreement or the other Loan
Documents;

 

(b)                                 Any
waiver, extension, modification, forbearance, delay or other act or omission of
the Administrative Agent or the Lenders, or any failure to proceed promptly or
otherwise against the Primary Obligor, the Secondary Obligor or any security;

 

(c)                                  Any
action, omission or circumstance which might increase the likelihood that the
Secondary Obligor may be called upon to perform under this Agreement or the
other Loan Documents or which might affect the rights or remedies of the
Secondary Obligor against the Primary Obligor; or

 

(d)                                 Any
dealings occurring at any time between the Primary Obligor and the
Administrative Agent or the Lenders, whether relating to the Primary Obligor
Obligations or otherwise.

 

The Secondary Obligor hereby
acknowledges that, absent this Section 5.3, the Secondary Obligor might have a
defense to its Obligations
as a result of one or more of the foregoing acts, omissions, agreements,
waivers or matters. The Secondary Obligor hereby expressly waives and
surrenders any defense to any liability on account of its Obligations based
upon any of such acts, omissions, agreements, waivers or matters.

 

5.4                                 Waivers
of Defenses. The Secondary Obligor waives:

 

(a)                                  Any
right it may have to require the Administrative Agent or the Lenders to proceed
against the Primary Obligor, proceed against or exhaust any security held from
the Primary Obligor, or pursue any other remedy in the Administrative Agent’s
or Lenders’ power to pursue;

 

(b)                                 Any
defense based on any claim that the Secondary Obligor’s obligations exceed or
are more burdensome than those of the Primary Obligor;

 

(c)                                  Any
defense based on:  (i) any legal
disability of the Primary Obligor; (ii) any release, discharge, modification,
impairment or limitation of the liability of the Primary Obligor to the
Administrative Agent or the Lenders from any cause, whether consented to by the
Administrative Agent or the Lenders or arising by operation of law or from any
bankruptcy or other voluntary or involuntary proceeding, in or out of court,
for the adjustment of debtor-creditor relationships (“Insolvency Proceeding”)
and (iii) any rejection or disaffirmance, of the 

 

4

 

Primary Obligor Obligations, or
any part thereof, or any security held therefor, in any such Insolvency
Proceedings;

 

(d)                                 Any
defense based on any action taken or omitted by the Administrative Agent or the
Lenders in any Insolvency Proceeding involving the Primary Obligor, including
any election to have their claim allowed as being secured, partially secured or
unsecured, any extension of credit by the Administrative Agent or the Lenders
to the Primary Obligor in any Insolvency Proceeding and the taking and holding
by the Administrative Agent or the Lenders of any security for any such
extension of credit;

 

(e)                                  All
presentments, demands for performance, notice of nonperformance, protests,
notices of protest, notices of dishonor, notices of acceptance of the
Obligations and of the existence, creation, or incurring of new or additional
indebtedness, and demands and notices of every kind, but only in Secondary
Obligor’s capacity as Secondary Obligor and not in its capacity as Primary Obligor
or as otherwise provided in the Loan Documents; and

 

(f)                                    Any
defense based on or arising out of any action of the Administrative Agent or
the Lenders described in Sections 5.2 or 5.3 above, subject to the provisions
of Section 5.2 and 5.3 above.

 

5.5                                 Impairment
of Subrogation Rights.

 

(a)                                  Upon
an Event of Default by the Primary Obligor, the Administrative Agent in its
sole discretion, without prior notice (except as required by the Loan Documents
or Applicable Law) to or consent of the Secondary Obligor, may elect to
foreclose either judicially or nonjudicially against any real or personal
property security it may hold for the Primary Obligor Obligations, or accept a
transfer of any such security in lieu of foreclosure, or compromise or adjust
the Primary Obligor Obligations or any part thereof or make any other
accommodation with the Primary Obligor, or exercise any other remedy against
the Primary Obligor or any security. No such action by the Administrative Agent
shall release or limit the liability of the Secondary Obligor, who shall,
subject to the provisions of Section 14.23(a) of the Loan Agreement, remain
liable for the Obligations after the action, even if the affect of the action
is to deprive the Secondary Obligor of any subrogation rights, rights of
indemnity, or other rights to collect reimbursement from the Primary Obligor
for any sums paid to the Administrative Agent or any Lender, whether
contractual or arising by operation of law or otherwise. The Secondary Obligor
expressly agrees that under no circumstances shall it be deemed to have any
right, title, interest or claim in or to any real or personal property held by
the Administrative Agent or any third party after any foreclosure or transfer
in lieu of foreclosure of any security for the Primary Obligor Obligations.

 

(b)                                 Regardless
of whether the Secondary Obligor may have made any payments to the
Administrative Agent or the Lenders, the Secondary Obligor hereby waives:  (i) all rights of subrogation,
indemnification, contribution and any other rights to collect reimbursement
from the Primary Obligor or any other party for any sums paid to the
Administrative Agent or the Lenders whether contractual or arising by operation
of law (including, without limitation, under Sections 2847 or 2848 of the
California Civil Code, under any provisions of the United States Bankruptcy
Code, or any successor or similar statutes) or 

 

5

 

otherwise, (ii) all rights to
enforce any remedy that the Administrative Agent or the Lenders may have
against the Primary Obligor, and (iii) all rights to participate in any
security now or later held by the Administrative Agent or the Lenders for the
Primary Obligor Obligations. The Secondary Obligor further agrees that, to the
extent the foregoing waiver is found by a court of competent jurisdiction to be
void or voidable for any reason, any rights of subrogation, reimbursement,
contribution and indemnification the Secondary Obligor may have against the
Primary Obligor or against any collateral or security, shall be junior and
subordinate to any rights the Administrative Agent or the Lenders may have
against the Primary Obligor, and to all right, title and interest the
Administrative Agent or the Lenders may have in any such collateral or
security. If any amount shall be paid to the Secondary Obligor on account of
any such subrogation, reimbursement, contribution or indemnification rights at
any time when all the Primary Obligor Obligations have not been paid in full,
such amount shall be held in trust by the Secondary Obligor and shall forthwith
be paid over to the Administrative Agent to be credited and applied against the
Primary Obligor Obligations, whether matured or unmatured, in accordance with
the terms of the Primary Obligor Documents. The waivers given in this Section
5.5(b) shall be effective until the Primary Obligor Obligations have been paid
and performed in full.

 

(c)                                  The
Secondary Obligor understands and acknowledges that, if the Administrative
Agent forecloses judicially or nonjudicially against any real property security
for the Primary Obligor Obligations, that foreclosure could impair or destroy
the ability that the Secondary Obligor may have to seek reimbursement,
contribution or indemnification from the Primary Obligor. The Secondary Obligor
further understands and acknowledges that in the absence of this Section 5.5,
such potential impairment or destruction of the Secondary Obligor’s rights, if
any, may entitle the Secondary Obligor to assert a defense to its liability on
account of the Obligations based on Section 580d of the California Code of
Civil Procedure as interpreted in Union Bank v. Gradsky,
286 Cal.App.2d 40 (1968). The Secondary Obligor freely, irrevocably and
unconditionally:  (i) waives and relinquishes
that defense and agrees that the Secondary Obligor will be fully liable for the
Obligations even though the Administrative Agent may foreclose judicially or
nonjudicially against any real property security for the Primary Obligor
Obligations; (ii) agrees that the Secondary Obligor will not assert that
defense in any action or proceeding which the Administrative Agent may commence
to enforce the Secondary Obligor’s liability on account of the Obligations,
(iii) acknowledges and agrees that the rights and defenses waived by the
Secondary Obligor hereunder on account of the Primary Obligor Obligations
include any right or defense that the Secondary Obligor may have or be entitled
to assert based upon or arising out of any one or more of Sections 580a, 580b
or 726 of the California Code of Civil Procedure or Section 2848 of the
California Civil Code; and (iv) acknowledges and agrees that the Lenders are
relying on this waiver in extending the credit to the Primary Obligor and the
Secondary Obligor, and that this waiver is a material part of the consideration
which the Administrative Agent and the Lenders are receiving for providing the
credit facilities under the Loan Agreement to the Primary Obligor.

 

(d)                                 The
Secondary Obligor waives any rights and defenses that are or may become
available to the Secondary Obligor on account of the Primary Obligor
Obligations by reason of Sections 2787 to 2855, inclusive, of the California
Civil Code.

 

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(e)                                  The
Secondary Obligor waives all rights and defenses that the Secondary Obligor may
have because the Primary Obligor Obligations are secured by real property. This
means, among other things, (i) the Lender may collect from the Secondary
Obligor and pursue any real or personal property pledged by the Secondary
Obligor without first foreclosing on any real or personal property collateral
pledged by the Primary Obligor; (ii) the amount of the Obligations for which
Secondary Obligor is liable may be reduced only by the price for which that
collateral is sold at the foreclosure sale, even if the collateral is worth
more than the sale price; and (iii) the Administrative Agent and the Lenders
may collect from the Secondary Obligor even if the Administrative Agent, by
foreclosing on the real property collateral, has destroyed any right the
Secondary Obligor may have to collect from the Primary Obligor. This is an
unconditional and irrevocable waiver of any rights and defenses the Secondary
Obligor may have because the Primary Obligor Obligations are secured by real
property. These rights and defenses include, but are not limited to, any rights
or defenses based upon Section 580a, 580b, 580d, or 726 of the Code of Civil
Procedure. In addition, Secondary Obligor waives all rights and defenses
arising out of an election of remedies by the Administrative Agent or the
Lenders, even though that election of remedies, such as a nonjudicial
foreclosure with respect to security for the guaranteed obligation, has
destroyed the Secondary Obligor’s rights of subrogation and reimbursement
against the Primary Obligor by the operation of Section 580d of the Code of
Civil Procedure or otherwise.

 

5.6                                 Revival
and Reinstatement. If the Administrative Agent or any Lender is required to
pay, return or restore to the Primary Obligor or any other person any amounts
previously paid on the Primary Obligor Obligations because of any Insolvency
Proceeding of the Primary Obligor, any stop notice or any other reason, the
obligation of the Secondary Obligor shall be reinstated and revived and the
rights of the Administrative Agent and the Lenders shall continue with regard
to such amounts, all as though they had never been paid.

 

5.7                                 The
Primary Obligor’s Financial Condition. The Secondary Obligor assumes full
responsibility for keeping informed of the Primary Obligor’s financial
condition and business operations and all other circumstances affecting the
Primary Obligor’s ability to pay and perform its obligations to the
Administrative Agent, and agrees that the Administrative Agent shall have no
duty to disclose to the Secondary Obligor any information which the
Administrative Agent may receive about the Primary Obligor’s financial
condition, business operations, or any other circumstances bearing on its
ability to perform.

 

5.7                                 Intent
of Waivers. The waivers and other provisions of this Section 5 are made by
the Secondary Obligor solely for itself and not on behalf of the Primary
Obligor. Furthermore, the waivers and other provisions of this Section 5 are
made by the Secondary Obligor solely in its capacity as a Secondary Obligor and
not in its capacity as a Primary Obligor. Nothing herein is intended to, or
shall, modify, or constitute a waiver or surrender by the Secondary Obligor of,
any right, remedy or defense that would otherwise be available to the Secondary
Obligor on account of its Obligations in its capacity as a Primary Obligor.

 

6.                                       Miscellaneous.
For all purposes of the Loan Agreement and the other Loan Documents, this
Joinder Agreement and the Joinder Supplement are “Loan Documents.”  The Loan Agreement contains certain
provisions which apply to the Loan Documents, and those provisions apply to
this Joinder Agreement and the Joinder Supplement, and are incorporated 

 

7

 

herein by this reference. Those
incorporated provisions include, without limitation, those relating to manner
of delivering notice, certain waivers (including waiver of jury trial),
submission to jurisdiction, the Borrower’s and Co-Borrower’s responsibility for
certain expenses, severability, manner for amendment and modification of this
Agreement, governing law and other matters. This Joinder Agreement may be
executed in any number of counterparts, each of which shall be an original, and
all of which, when taken together, shall constitute one and the same agreement.
Delivery of an executed signature page of this Joinder Agreement by facsimile
transmission shall be effective as delivery of a manually executed counterpart
hereof.

 

7.                                       Limitation
of Liability. The provisions of Section 14.23(a) of the Loan
Agreement shall apply to the terms of this Joinder Agreement.

 

[signatures appear on the next page]

 

8

 

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

 

	
   

  	
  DEG, LLC, a
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Douglas
  Emmett Realty Advisors,

  
	
   

  	
   

  	
  its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ William
  Kamer

  	
   

  
	
   

  	
   

  	
   

  	
  William
  Kamer

  
	
   

  	
   

  	
   

  	
  Senior Vice
  President

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
   

  
	
   

  	
  DEG, LLC

  
	
   

  	
  c/o Douglas
  Emmett Realty Advisors

  
	
   

  	
  808 Wilshire
  Boulevard, Suite 200

  
	
   

  	
  Santa
  Monica, California 90401

  
	
   

  	
  Attention:  Jordan L. Kaplan and William Kamer

  
	
   

  	
  Telecopier
  No.:  (310) 255-7702

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DOUGLAS
  EMMETT 2002, LLC

  
	
   

  	
  a Delaware
  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DOUGLAS
  EMMETT REALTY

  
	
   

  	
   

  	
  ADVISORS,

  
	
   

  	
   

  	
  a California
  corporation, its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ William
  Kamer

  	
   

  
	
   

  	
   

  	
   

  	
  William
  Kamer

  
	
   

  	
   

  	
   

  	
  Senior Vice
  President

  

 

9

 

SUPPLEMENT TO JOINDER AGREEMENT

 

This SUPPLEMENT TO
JOINDER AGREEMENT (this “Supplement”) is attached to and forms a part of
the JOINDER AND SUPPLEMENT AGREEMENT (the “Joinder Agreement”) dated as
of August 26, 2005 executed by and among DEG, LLC, a limited liability company
organized under the laws of the State of Delaware (the “Co-Borrower”), and
Douglas Emmett 2002, LLC, a limited liability company organized under the laws
of the State of Delaware (the “Borrower”) for the benefit of Eurohypo
AG, New York Branch, as Administrative Agent, and the Lenders from time to time
party to that certain Loan Agreement (the “Loan Agreement”) dated as of August
26, 2005. Capitalized terms used but not defined herein shall have the meanings
assigned them in the Loan Agreement and the Joinder Agreement.

IN ADDITION TO
AND WITHOUT LIMITING THE COVENANTS AND REPRESENTATIONS AND WARRANTIES OF
BORROWER AND CO-BORROWER CONTAINED IN THE JOINDER AGREEMENT AND THE LOAN
AGREEMENT, BORROWER AND CO-BORROWER FURTHER AGREE AS FOLLOWS:

 

1.                                      Modifications
to the Loan Agreement. The Loan Agreement is hereby Modified as follows:

 

(a)                                  The
RECITALS shall be supplemented as follows:

 

“The
Co-Borrower is the owner of (a) (i) a fee simple interest in certain
condominium apartments listed on Schedule 1A-2 (the “Fee Apartments”)
constituting part of that certain office building project listed in Schedule
1A-1 to the Supplement to the Joinder Agreement (the “Supplement”)
attached to the Joinder Agreement commonly known as Harbor Court, in the City
and County of Honolulu, State of Hawaii, on certain land more fully described
in Schedule 1B-1 attached to the Supplement (the “Harbor Court
Project”) and (ii) a leasehold interest in certain condominium apartments
listed on Schedule 1A-2 (the “Leasehold Apartments”) constituting
part of the Harbor Court Project, and (b) a fee simple interest and a leasehold
interest in that certain office building listed in Schedule 1A-1 attached
to the Supplement known as 1132 Bishop Street, in the City and County of
Honolulu, State of Hawaii, on certain land more fully described in Schedule
1B-1 attached to the Supplement attached to the Joinder and Supplement (the
“Bishop Street Project”) (the rights of the Co-Borrower with respect to
each such building and to the land on which each such building is located,
together with the rights of the Co-Borrower with respect to any air rights and
other rights, privileges, easements, hereditaments and appurtenances thereunto
relating or appertaining thereto, all Improvements thereon, together with all
fixtures and equipment required for the operation thereof, all personal
property related to the foregoing and all other items described in the granting
clause of the Deed of Trust relating to each such building and interest in land
is referred to as a “Project” and collectively, the “Projects”). Schedule
1B-3 attached to the Supplement sets forth a description of each ground
lease (each such ground lease, as the same may be supplemented, amended,
modified, renewed or extended, is referred to herein as a “Ground Lease”)
under which the Co-Borrower holds it ground leasehold interest in each Project.”

 

(b)                                 The
following new definitions shall be added to the Loan Agreement:

 

1

 

(i)                                     ““Bishop
Place Ground Lease” has the meaning assigned to such term in Schedule
1B-3 attached to the Supplement attached to the Joinder and Supplement.”;

 

(ii)                                  ““Bishop
Place Project” has the meaning assigned to such term in the Recitals
as supplemented by the Supplement attached to the Joinder and Supplement.”;

 

(iii)                               ““Condominium
Declaration” shall mean that certain Declaration of Condominium Property
Regime dated May 16, 1994, filed in the Office of the Assistant Registrar of
the Land Court of the State of Hawaii as Land Court Document No. 2150143, and
recorded in the Bureau of Conveyances of the State of Hawaii as Document No.
94-090241, as amended.”;

 

(iv)                              ““Ground
Lease” shall mean collectively, the Bishop Place Ground Lease and the
Harbor Court Ground Lease.”;

 

(v)                                 ““Ground
Lease Estoppel” shall mean each of the estoppels each in form and substance
satisfactory to the Administrative Agent which have been executed, dated and
delivered by each Ground Lessor to the Administrative Agent (on behalf of the
Lenders) prior to the Closing Date.”;

 

(vi)                              ““Ground
Lessor” shall mean collectively, (i) the lessor who is party to the Bishop
Place Ground Lease and (ii) the lessor who is party to the Harbor Court Ground
Lease, as identified on Schedule 1B-3 attached to the Supplement
attached to the Joinder and Supplement.”;

 

(vii)                           ““Harbor
Court Fee Estate” shall mean the Underlying Fee Estate subject to the
Harbor Court Ground Lease.”;

 

(viii)                        ““Harbor
Court Ground Lease” has the meaning assigned to such term in Schedule
1B-3 attached to the Supplement attached to the Joinder and Supplement.”;

 

(ix)                                ““Harbor
Court Project” has the meaning assigned to such term in the Recitals
as supplemented by the Supplement attached to the Joinder and Supplement.”; and

 

(x)                                   ““Underlying
Fee Estate” shall mean, for the portion of each Project that is subject to
a Ground Lease, those interests consisting of the fee simple interest in the
land of such Project subject to such Ground Lease and the rights of the Ground
Lessor under such Ground Lease, exclusive of any such interests which are owned
by the Co-Borrower and encumbered pursuant to the Deeds of Trust on the Closing
Date.”.

 

(c)                                  The
following definitions shall be Modified as set forth below:

 

(i)                                     Clause
(a) of the definition of “Operating Expenses” shall be restated as
follows: “(a) allocated amounts on account of Insurance Premiums, Real Estate
Taxes and all rentals due under the Ground Leases, prorated on an annual basis,”;
and

 

(d)                                 The
following Sections shall be Modified as follows:

 

2

 

(i)                                     Restate
Section 6.01(k)(i) as follows:  “(i)
each insuring the Administrative Agent for the benefit of the Lenders in an
amount equal to the aggregate amount of the Commitments (to the extent
advanced) in effect on the Closing Date (with a tie-in endorsement satisfactory
to the Administrative Agent) that (A) the Borrower is lawfully seized and
possessed of a valid and subsisting fee simple interest in the Projects owned
by the Borrower and (B) the Co-Borrower is lawfully seized and possessed of a
valid and subsisting fee simple interest in the Fee Apartments, a valid and
subsisting leasehold interest in the Leasehold Apartments, a valid and
subsisting fee simple interest in the portion of the Bishop Place project owned
by the Co-Borrower in fee simple and a valid and subsisting leasehold interest
in the portion of the Bishop Place Project that is subject to the Bishop Place
Ground Lease, and that the Deeds of Trust constitute valid fee simple and
leasehold deed of trust liens on the Projects, as applicable, subject to no
Liens other than Permitted Title Exceptions and”;

 

(ii)                                  Restate
Section 6.01(q) as follows: 
(q)    “Estoppels.
(i) Estoppel certificates in form and substance satisfactory to the
Administrative Agent from tenants covering at least seventy five percent (75%)
of all the leased space in the Projects, except to the extent that the
Administrative Agent agrees in writing to defer the receipt of any tenant estoppel
certificate to a date subsequent to the Closing Date, in which case the
Borrower shall use commercially reasonable efforts to obtain such deferred
estoppel certificates as promptly as possible following the Closing Date and
(ii) the Ground Lease Estoppels. For purposes of this requirement, it is agreed
that the form tenant estoppels required by any applicable Approved Lease shall
be acceptable to the Administrative Agent.”;

 

(iii)                               Add
a new Section 6.01(dd): (dd)    “Ground
Lease Estoppels. The Ground Lease Estoppels executed by each Ground Lessor.”;

 

(iv)                              Add
the following sentences to the end of Section 7.10:  “The sole members of Co-Borrower on the date
hereof are Borrower’s Member and HBRCT LLC, a Hawaii limited liability company.
The sole manager of Co-Borrower on the date hereof is Borrower’s Manager.”;

 

(v)                                 Replace
the first and second sentences of Section 7.12 with the following:  “On the Closing Date, (i) the Borrower will
own and on such date will have good, indefeasible and insurable fee simple
title to the portion of the Projects (other than the Co-Borrower Projects)
consisting of real property free and clear of all Liens, other than Permitted
Title Exceptions, (ii) the Co-Borrower will own and on such date will have
good, indefeasible and insurable fee simple title to the portion of the Bishop
Place Project that is not subject to the Bishop Place Ground Lease consisting
of real property free and clear of all Liens, other than Permitted Title
Exceptions, (iii) the Co-Borrower will own and on such date will have good,
indefeasible and insurable fee simple title to the Fee Apartments consisting of
real property free and clear of all Liens, other than Permitted Title
Exceptions, and (iv) the Co-Borrower will own and on such date will have good,
indefeasible and insurable title to the leasehold estates created by each
Ground Lease free and clear of all Liens, other than Permitted Title
Exceptions. On the Closing Date, (i) the Borrower will own or (in compliance
with Section 9.04(d)) lease and will have good title 

 

3

 

to all other
portions of the Projects (other than the Co-Borrower Projects) free and clear
of all Liens, other than Permitted Title Exceptions and rights of equipment
lessors under equipment leases currently in effect which comply with the
requirements set forth in Sections 9.02(h) and 9.04(d) and (ii) the Co-Borrower
will own or (in compliance with Section 9.04(d)) lease and will have good title
to (a) all other portions of the Fee Apartments and the Leasehold Apartments
and (b) all other portions of the Bishop Place Project, in each case, free and
clear of all Liens, other than Permitted Title Exceptions and rights of
equipment lessors under equipment leases currently in effect which comply with
the requirements set forth in Sections 9.02(h) and 9.04(d).”;

 

(vi)                              Restate
the last sentence of Section 7.12, as follows:  “There are no outstanding options to purchase
or rights of first refusal to purchase affecting the Projects except as set
forth in the Harbor Court Ground Lease relating to the Harbor Court Project.”;

 

(vii)                           Add
the following sentence at the end of Sections 7.15, 7.20 and 7.24:
“The representations and warranties in this Section pertaining to the
Co-Borrower and the Harbor Court Project shall only apply to the Fee Apartments
and the Leasehold Apartments and not to the portions of the Harbor Court
Project owned by the owner’s association or other condominium owners.”;

 

(viii)                        Add
the following sentence at the end of Sections 7.26:  “Notwithstanding the foregoing, the
Administrative Agent and the Lenders acknowledge that the Property Manager
delegates certain managing and leasing services for the Co-Borrower Projects to
third parties selected from time to time by the Property Manager.”;

 

(ix)                                Replace
“Reserved” in Section 7.34 with the following:

 

“7.34                 Ground
Lease. The Co-Borrower has heretofore delivered to the Administrative Agent
a true, correct and complete copy of each Ground Lease and none of the Ground
Leases has been further Modified. Each Ground Lease is in full force and effect
and, except as may be disclosed in the Ground Lease Estoppel for such Ground
Lease furnished to the Administrative Agent, the Co-Borrower is not in default
thereunder. To the best of the Co-Borrower’s knowledge, except as may be
disclosed in the Ground Lease Estoppel for such Ground Lease furnished to the
Administrative Agent, neither Ground Lessor is in default under any material
covenant or obligation set forth in the applicable Ground Lease.”;

 

(x)                                   At
the end of Section 8.02(b), the text “affecting any of the Co-Borrower
Parties or any Project;” shall be restated as follows:  “affecting any of the Co-Borrower Parties,
any Project or any Ground Lease;”;

 

(xi)                                Restate
Section 8.02(d) as follows:  “(d)    promptly after the Co-Borrower
knows or has reason to believe (i) that any default has occurred by the
Co-Borrower or Ground Lessor under any Ground Lease or the Co-Borrower has
received a written notice of default from the Ground Lessor under any Ground
Lease or (ii) any default has occurred by the Co-Borrower or tenant under any
Major Lease or the Co-Borrower 

 

4

 

has received a written notice of default from the tenant under any
Major Lease, a notice of such default;”;

 

(xii)                             In
Section 8.02(e) after the text “copies of” insert the text “any material
notices or documents sent to or received by the Co-Borrower pursuant to any
Ground Lease;”;

 

(xiii)                          The
following new subsection (j) is added to Section 8.05:

 

“(j)                               Harbor
Court  Insurance Program. Notwithstanding anything to the contrary
contained herein, it is understood and agreed that the Administrative Agent and
the Lenders have reviewed and approved the existing insurance program (the “Existing
AOAO Insurance Program”) (including, without limitation, the coverages,
deductibles, carriers, ratings, reinsurance and other terms and provisions of
such policies) maintained by the owner’s association of the Harbor Court
Project (the “AOAO”) pursuant to the Condominium Declaration and,
notwithstanding any discrepancies between the Existing AOAO Insurance Program
and the insurance requirements set forth in Section 8.05 (the “Insurance
Requirements”), the Existing AOAO Insurance Program shall be deemed to
satisfy the Insurance Requirements with respect to the Harbor Court Project. If
and to the extent any insurance maintained under the Existing AOAO Insurance
Program exceeds the Insurance Requirements, the AOAO or Co-Borrower may reduce
the insurance maintained under the Existing AOAO Insurance Program to standards
that meet or exceed the standards set forth in the Insurance Requirements.”

 

(xiv)                         Restate
Section 8.07(i) as follows:  “maintain
or cause to be maintained the Projects owned by the Borrower in good condition
and repair in a manner consistent with a Class-A office building located in the
relevant submarket in which such Project is located in Los Angeles County,
California, and, subject to the terms of the applicable Ground Lease and, in
the case of the Harbor Court Project, subject to the terms of the Condominium Declaration,
Co-Borrower shall maintain or cause to be maintained the Projects owned by the
Co-Borrower in good condition and repair in a manner consistent with a Class-A
office building located in the relevant submarket in which such Project is
located in Honolulu County, Hawaii, and make all reasonably necessary repairs
or replacements thereto;”;

 

(xv)                            Add
the following subparagraph (vi) to Section 8.07:

 

“(vi)                        Notwithstanding
the foregoing, the provisions of this Section 8.07 shall be subject to
(i) in the case of the Bishop Place Project, the applicable terms of the Bishop
Place Ground Lease and (ii) in the case of the Harbor Court Project, the
applicable terms of the Harbor Court Ground Lease and the Condominium
Declaration.”;

 

(xvi)                         Add
the following subsection (c) to Section 8.11:

 

“(c)                            Notwithstanding
the foregoing, the provisions of this Section 8.11 shall only apply to
the portions of the Co-Borrower Projects that are owned or leased by
Co-Borrower; provided, however, that nothing in this subsection (c)
shall be construed as 

 

5

 

limiting the
provisions of Sections 8.11(a)(viii) and 8.11(b)(ii) as they
pertain to the Co-Borrower Projects.”;

 

(xvii)                      Add
the following sentence to the end of Section 8.12(a):  “Nothing herein shall prohibit the Property
Manager, in the exercise of its business judgment, from delegating
responsibilities under the Property Management Agreement to Affiliates of the
Borrower or Co-Borrower or other third parties licensed to conduct such
activities in the State of Hawaii.”;

 

(xviii)                   Replace
“Reserved” in Section 8.20 with the following:

 

“8.20  Ground Lease.

 

(a)                              The Co-Borrower shall pay or cause to be
paid all rents, additional rents and other sums required to be paid by the Co-Borrower,
as tenant under and pursuant to the provisions of each Ground Lease on or
before the date on which such rent or other charge is payable. Upon request of
the Administrative Agent, the Co-Borrower shall deliver to the Administrative
Agent evidence reasonably satisfactory to the Administrative Agent that all
such rents and other sums payable, pursuant to each Ground Lease, which are
then due and payable, have been paid.

 

(b)                             The Co-Borrower shall diligently perform
and observe all of the terms, covenants and conditions of each Ground Lease on
the part of the Co-Borrower, as tenant thereunder, to be performed and observed
prior to the expiration of any applicable grace period therein provided and do
everything necessary to preserve and to keep unimpaired and in full force and
effect each Ground Lease.

 

(c)                              The Co-Borrower shall promptly notify the
Administrative Agent of the giving of any notice by the lessor under any Ground
Lease to the Co-Borrower of any default by the Co-Borrower, as lessee thereunder,
and promptly deliver to the Administrative Agent a true copy of each such
notice.

 

(d)                             The Co-Borrower shall enforce each
covenant or obligation of each Ground Lease in accordance with its terms.

 

(e)                              Upon the request of the Administrative Agent,
the Co-Borrower shall cooperate with the Administrative Agent and the Lenders
and, to the extent such conditions have not already been satisfied by each
lessor’s execution and delivery of the applicable Ground Lease Estoppel, do
such acts as are within its rights and powers to cause the Administrative Agent
or its successor on behalf of the Lenders to be deemed a “leasehold mortgagee”
or its equivalent under each Ground Lease during all times prior to the
satisfaction of the Obligations in full.

 

(f)                                The Co-Borrower shall deliver to each
Ground Lessor under each Ground Lease, if requested by the Administrative Agent
or any successor, written notice of the identity of each successor to the
Administrative Agent.

 

6

 

(g)                             The Co-Borrower shall furnish to the
Administrative Agent all information that the Administrative Agent may
reasonably request from time to time concerning each Ground Lease and the
Co-Borrower’s compliance with each Ground Lease.

 

(h)                             The Co-Borrower, promptly upon learning
that any lessor under any Ground Lease has failed to perform the terms and
provisions under such Ground Lease and immediately upon learning of a rejection
or disaffirmance or purported rejection or disaffirmance of any such Ground
Lease pursuant to any state or federal bankruptcy law, shall notify the
Administrative Agent thereof. Promptly after execution of any amendment to the
Deed of Trust covering any Project subject to a Ground Lease, the Co-Borrower
shall notify the applicable lessor in a form satisfactory to the Administrative
Agent of the execution and delivery of the Deed of Trust or such amendment. The
Administrative Agent shall have the right, but not the obligation, to give any
lessor under any Ground Lease at any time any notice described in this
subsection or otherwise relating to the Deed of Trust or the Loans.

 

(i)                                 The Co-Borrower shall promptly notify the
Administrative Agent of any request that any party to any Ground Lease makes
for arbitration or other dispute resolution procedure pursuant to any such
Ground Lease and of the institution of any such arbitration or dispute
resolution. The Co-Borrower hereby authorizes the Administrative Agent to
participate in any such arbitration or dispute resolution but such
participation shall not, unless an Event of Default exists, be to the exclusion
of the Co-Borrower. The Co-Borrower shall promptly deliver to the
Administrative Agent a copy of the determination of each such arbitration or
dispute resolution mechanism.

 

(j)                                 If after an Event of Default the
Administrative Agent or its designee shall acquire or obtain a new ground lease
following a termination of any Ground Lease, then the Co-Borrower shall have no
right, title or interest whatsoever in or to such new Ground Lease, or any
proceeds or income arising from the estate arising under any such new Ground
Lease, including from any sale or other disposition thereof. The Administrative
Agent or its designee shall hold such new ground lease free and clear of any
right or claim of the Co-Borrower.

 

(k)                              In the case of any Project subject to a
Ground Lease, and without limiting any provision in the applicable Deed of
Trust, upon the acquisition by the Co-Borrower or any Affiliate of the
Underlying Fee Estate in the portion of such Project that is subject to a
Ground Lease there shall be no merger of the leasehold estate under the Ground
Lease with such Underlying Fee Estate without the prior written consent of the Administrative
Agent, except as expressly permitted in Section 9.14.

 

(l)                                 Notwithstanding anything to the contrary
contained in the Loan Agreement or the other Loan Documents, Sections
9.01(a) and 9.03 of the Loan Agreement shall not prohibit a merger
of the Co-Borrower into the Borrower or the transfer of all of the interests in
the Co-Borrower or all of the Co-Borrower Projects to the Borrower, subject in
each case to the Liens and security interests created by the Loan Documents.

 

(m)                           Co-Borrower shall be permitted to transfer
the Co-Borrower Projects (either with or without the Projects owned by the
Borrower) on the same terms and conditions as set forth in Section
9.03(a)(iii) of the Loan Agreement; provided, however, that
no such transfer 

 

7

 

of the Co-Borrower Projects to a Qualified Successor Entity shall be
permitted unless either (i) the Borrower shall transfer the Projects owned by
the Borrower to the same Qualified Successor Entity or to another Qualified
Successor Entity that qualifies as such pursuant to the same clause (i.e.,
clause (I), (II) or (III) of the definition of Qualified Successor Entity set
forth in the Loan Agreement), or (ii) direct or indirect Equity Interests in
the Borrower are transferred to a Person that controls, is controlled by or is
under common control with the Qualified Successor Entity to which the
Co-Borrower Projects are transferred and such transfer of Equity Interests is
otherwise permitted by the Loan Agreement.”

 

(xix)                           Insert a new Section 9.03(a)(ix) as
follows:  “(ix) Transfers by HBRCT LLC, a
Hawaii limited liability company, or any successor in interest thereto, of its
direct or indirect ownership or other Equity Interests in the Co-Borrower.”;

 

(xx)                              The text “(except for the Permitted Public
REIT Transfer, any Transfer of publicly-traded stocks in the Permitted Public
REIT or any Transfers following a Permitted Public REIT Transfer that are
permitted by Section 9.03(a)(viii))” in the second sentence of the last
paragraph of Section 9.03 shall be restated as follows:  “(except for the Permitted Public REIT
Transfer, any Transfer of publicly-traded stocks in the Permitted Public REIT,
any Transfer permitted by Section 9.03(a)(ix) or any Transfers following
a Permitted Public REIT Transfer that are permitted by Section 9.03(a)(viii))”;

 

(xxi)                           Insert a new Section 9.04(i) as
follows:

 

“(i)                               Additional
Indebtedness relating to Harbor Court Project. Indebtedness of the
Co-Borrower for borrowed money incurred in connection with the assumption by
the Co-Borrower of the financing which encumbers the Harbor Court Fee Estate as
of the Closing Date in connection with the Co-Borrower’s acquisition of the
Harbor Court Fee Estate in accordance with the Harbor Court Ground Lease; provided
that Co-Borrower complies the provisions set forth in Section 9.14.”;

 

(xxii)                        Add the following sentence to the end of
the last paragraph of Section 9.12: 
“The Administrative Agent and the Lenders acknowledge that the Harbor
Court Project is subject to the Condominium Declaration which may be amended
without the Administrative Agent’s approval as necessary in order to effectuate
Transfers permitted by the Loan Documents.”;

 

(xxiii)                     Replace “Reserved” in Section 9.14
with the following:

 

“9.14                     Ground
Lease. The Co-Borrower shall not (a) surrender any leasehold estate created
by any Ground Lease or terminate or cancel any Ground Lease without the prior
written consent of the Administrative Agent and the Required Lenders; (b)
without the Administrative Agent’s prior written consent, cause, agree to, or
permit to occur any subordination, or consent to the subordination of, such
Ground Lease to any mortgage, deed of trust or other Lien encumbering (or that
may in the future encumber) the estate of the lessor under the Ground Lease in
any premise(s) demised to the Co-Borrower under a Ground Lease (other than a
subordination or consent to subordination expressly required by the terms of
the 

 

8

 

Ground Lease); (c) grant any
consent, approval or waiver under, or agree to any termination, cancellation or
modification of any Ground Lease, in each case, without the prior written
consent of the Administrative Agent and, in the case of any material consent,
approval, waiver or modification, the prior written consent of the Required
Lenders, except where the collateral for the Loans consists of both the
leasehold and entire fee interests in the portion of the Project covered by
such Ground Lease and such consent, approval, waiver or modification has no
Material Adverse Effect on the Lenders or on the security interests in such
Project held for their benefit. Any such surrender of the leasehold estate
created by such Ground Lease or termination, cancellation or Modification of
such Ground Lease not permitted pursuant to the foregoing terms of this Section
9.14 shall be void ab initio and of no force and effect. Notwithstanding
the foregoing, if, in connection with the Co-Borrower’s acquisition of the
entirety of the Underlying Fee Estate of a Project, other than the acquisition
of the Harbor Court Fee Estate, (i) the Co-Borrower grants to the
Administrative Agent on behalf of the Lenders a first priority perfected Lien
on the entirety of such Underlying Fee Estate (together with all other right,
title and interest of the Co-Borrower in and to such Project), on the same
terms, covenants and conditions as are set forth in the form of Deed of Trust used
for the fee portion of such Project, (ii) the Co-Borrower delivers to the
Administrative Agent concurrently with the recordation of such Deed of Trust
(or an amendment to the Deed of Trust for such Project providing with respect
to the Underlying Fee Estate (and all other right, title and interest of the
Co-Borrower in and to such Project) the same terms, covenants and conditions as
are set forth in the form of Deed of Trust used for the fee portion of such Project)
a Title Policy obtained from the Title Insurer at the Co-Borrower’s sole cost
and expense which complies with the requirements of Section 6.01 of this
Agreement and amendments to all Loan Documents (in form and substance
satisfactory to the Administrative Agent, and as reasonably required by the
Administrative Agent) relating to such Project confirming that all of the
Co-Borrower’s representations, warranties, covenants and obligations and all of
the rights, remedies and benefits of the Administrative Agent and the Lenders
thereunder with respect to such Project apply to the Underlying Fee Estate of
such Project together with all other right, title and interest of the
Co-Borrower in and to such Project, and (iii) the Co-Borrower pays all
reasonable costs and expenses of the Administrative Agent incurred in
connection with such acquisition and amendment in accordance with Section
14.03, then, so long as no Event of Default then exists, the Co-Borrower
may elect to terminate the Ground Lease for such Project upon at least thirty
(30) days’ prior written notice to the Administrative Agent at any time
following the end of any preference period, if any, applicable to the encumbrance
of the Underlying Fee Estate in favor of the Administrative Agent, without any
further consent of the Administrative Agent or any Lender, unless, in the
reasonable opinion of the Administrative Agent or the Required Lenders
delivered by a written notice to the Co-Borrower prior to the end of such
thirty (30) day period, such termination would have any Material Adverse
Effect. Notwithstanding the foregoing, if the Co-Borrower notifies the
Administrative Agent of its intention to make such acquisition and requests the
Administrative Agent to determine whether it or the Required Lenders would
claim that the termination of the applicable Ground Lease in connection with
the Co-Borrower’s acquisition of the Underlying Fee Estate in compliance with
this Section 9.14 would have a Material Adverse Effect, the failure of
the Administrative Agent or the Required Lenders to assert such claim within
thirty (30) days after receiving such notice shall be deemed an election by the
Administrative Agent and the Required Lenders not to assert such claim for
purposes of this Section 9.14. Such deemed election shall not be binding
on the Administrative Agent or the 

 

9

 

Required Lenders with respect
to any acquisition consummated more than one hundred eighty (180) days
following the Co-Borrower’s request for such determination. Notwithstanding the
foregoing, or anything to the contrary contained in this Agreement, if
Co-Borrower elects to exercise its option to purchase the Harbor Court Fee
Estate, as set forth in the Harbor Court Ground Lease, then Co-Borrower shall
be permitted to assume the existing financing on the Harbor Court Fee Estate,
and the Administrative Agent and each Lender acknowledges and agrees that it
shall not be entitled to a Lien on the Harbor Court Fee Estate; provided,
however, that (A) Co-Borrower shall be prohibited from merging the
leasehold estate under the Harbor Court Ground Lease with the Harbor Court Fee
Estate, and (B) Co-Borrower shall not be permitted to terminate the Harbor
Court Ground Lease”;

 

(xxiv)                    The
following sentence is added at the end of Section 9.15:  “Nothing herein shall prohibit the Property
Manager, in the exercise of its business judgment, from delegating
responsibilities under the Property Management Agreement to Affiliates of the
Borrower or Co-Borrower or other third parties licensed to conduct such
activities in the State of Hawaii.”; and

 

(xxv)                       Insert
a new Section 10.04 as follows:

 

(xxvi)                    “10.04   Certain Limitations.
The provisions of Article X shall be subject, with respect to the Co-Borrower
Projects, to the terms of the applicable Ground Lease and, in the case
of the Harbor Court Project, to the terms of the Condominium Declaration.”; and

 

(xxvii)                 Replace
“Reserved” in Section 12.01(q) with the following:  “(q)    The
Co-Borrower shall default under the Ground Lease and such default is not cured
within the applicable notice and cure periods provided therein; or”.

 

10

 

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

 

	
   

  	
  DEG, LLC, a
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Douglas
  Emmett Realty Advisors,

  
	
   

  	
   

  	
  its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ William
  Kamer

  	
   

  
	
   

  	
   

  	
   

  	
  William
  Kamer

  
	
   

  	
   

  	
   

  	
  Senior Vice
  President

  
	
   

  	
   

  
	
   

  	
  Address for
  Notices:

  
	
   

  	
   

  
	
   

  	
  DEG, LLC

  
	
   

  	
  c/o Douglas
  Emmett Realty Advisors

  
	
   

  	
  808 Wilshire
  Boulevard, Suite 200

  
	
   

  	
  Santa
  Monica, California 90401

  
	
   

  	
  Attention:  Jordan L. Kaplan and William Kamer

  
	
   

  	
  Telecopier
  No.:  (310) 255-7702

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DOUGLAS
  EMMETT 2002, LLC

  
	
   

  	
  a Delaware
  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  DOUGLAS
  EMMETT REALTY

  
	
   

  	
   

  	
  ADVISORS,

  
	
   

  	
   

  	
  a California
  corporation, its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ William
  Kamer

  	
   

  
	
   

  	
   

  	
   

  	
  William
  Kamer

  
	
   

  	
   

  	
   

  	
  Senior Vice
  President

  

 

1

 

SCHEDULE
1A-1

 

LIST OF
PROJECTS OWNED BY CO-BORROWER

 

	
  1.

  	
  Bishop Place

  
	
   

  	
  1132 Bishop Street

  
	
   

  	
  Honolulu, HI

  
	
   

  	
   

  
	
  2.

  	
  Harbor Court

  
	
   

  	
  55 Merchant Street

  
	
   

  	
  Honolulu, HI<Page>

                                                                     EXHIBIT 4.1

NUMBER                                                                     UNITS
U-__________

SEE REVERSE FOR
CERTAIN DEFINITIONS

                             TAILWIND FINANCIAL INC.
                                                              CUSIP: 874023 20 3

                UNITS CONSISTING OF ONE SHARE OF COMMON STOCK AND
                ONE WARRANT TO PURCHASE ONE SHARE OF COMMON STOCK

     THIS CERTIFIES THAT ______________________________________________ is the
owner of ____________________ Units.

     Each Unit ("UNIT") consists of one (1) share of common stock, par value
$.01 per share ("COMMON STOCK"), of Tailwind Financial Inc., a Delaware
corporation (the "Corporation"), and one warrant (the "WARRANT"). The Warrant
entitles the holder to purchase one (1) share of Common Stock for [$6.00/$7.20]
per share (subject to adjustment). The Warrant will become exercisable on the
later of (i) the Corporation's completion of an acquisition of one or more
assets or operating businesses through a merger, capital stock exchange, asset
or stock acquisition, exchangeable share transaction or other similar business
combination and (ii) _____________________ [one year after the effective date of
the registration statement relating to the initial public offering of the
Units], and will expire unless exercised before 5:00 p.m., New York City time,
on ____________, 2010 [four years after the effective date of the registration
statement relating to the initial public offering of the Units], or earlier upon
redemption (the "EXPIRATION DATE"). The Common Stock and Warrants comprising the
Units represented by this certificate are not transferable separately prior to
___________, 2006, subject to earlier separation in the discretion of Deutsche
Bank Securities Inc. The terms of the Warrants are governed by a Warrant
Agreement, dated as of _______, 2006, between the Corporation and American Stock
Transfer & Trust Company (the "WARRANT AGENT") and are subject to the terms and
provisions contained therein, all of which terms and provisions the holder of
this certificate consents to by acceptance hereof. Copies of the Warrant
Agreement are on file at the office of the Warrant Agent at 59 Maiden Lane,
Plaza Level, New York, New York 10038, and are available to any Warrant holder
on written request and without cost.

     This certificate is not valid unless countersigned by the Transfer Agent
and Registrar of the Corporation.

     Witness the facsimile seal of the Corporation and the facsimile signature
of its duly authorized officers.

                             TAILWIND FINANCIAL INC.
                                    CORPORATE
                                    DELAWARE
                                      SEAL
                                      2006

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By:
    --------------------------------         --------------------------------
             President                              Assistant Secretary

Countersigned By:
                   -----------------
                    [Transfer Agent]

                             TAILWIND FINANCIAL INC.

The Corporation will furnish without charge to each unit holder who so requests,
a statement of the powers, designations, preferences and relative,
participating, optional or other special rights of each class of stock or series
thereof of the Corporation and the qualifications, limitations, or restrictions
of such preferences and/or rights.

The following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM - as tenants in common       UNIF GIFT MIN ACT - ______Custodian ______
TEN ENT - as tenants by the entireties                   (Cust)          (Minor)
JT TEN  - as joint tenants with                          under Uniform Gifts to
          right of survivorship and                      Minors Act ___________
          not as tenants in common                                    (State)

     Additional Abbreviations may also be used though not in the above list.

     FOR VALUE RECEIVED, ___________________________ HEREBY SELL, ASSIGN AND
TRANSFER UNTO

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

_____________________________________

_____________________________________

________________________________________________________________________________
  (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

________________________________________________________________________________

________________________________________________________________________________

_______________________________________________________________________ UNITS
REPRESENTED BY THE WITHIN CERTIFICATE, AND DO HEREBY IRREVOCABLY CONSTITUTE AND
APPOINT ________________ ATTORNEY TO TRANSFER THE SAID UNITS ON THE BOOKS OF THE
WITHIN NAMED CORPORATION WITH FULL POWER OF SUBSTITUTION IN THE PREMISES.

DATED:
      --------------          ------------------------------------------

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                                       NOTICE: The signature to this assignment
                                       must correspond with the name as written
                                       upon the face of the certificate in every
                                       particular, without alteration or
                                       enlargement or any change whatever.

Signature(s) Guaranteed:

--------------------------------------
THE SIGNATURE(S) MUST BE GUARANTEED BY
AN ELIGIBLE GUARANTOR INSTITUTION
(BANKS, STOCKBROKERS, SAVINGS AND LOAN
ASSOCIATIONS AND CREDIT UNIONS WITH
MEMBERSHIP IN AN APPROVED SIGNATURE
GUARANTEE MEDALLION PROGRAM, PURSUANT TO
SECURITIES AND EXCHANGE COMMISSION RULE
17Ad-15).

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]