Document:

Amended and Restated Limited Liability Limited Partnership Agreement

 Exhibit 10.43 
  
 AMENDED AND RESTATED 
  
 LIMITED LIABILITY LIMITED PARTNERSHIP AGREEMENT 
  
 OF 
  
 HDC NORTH BEACH DEVELOPMENT, LLLP 
  
 Among 
  
 DTRS NORTH
BEACH DEL CORONADO, LLC, 
  
 DCORO HOLDINGS, LLC,

  
 KSL DC NEWCO, LLC 
  
 AND 
  
 HDC DC CORPORATION 
  
 Dated: As of January 9, 2006 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE 1. FORMATION AND CONTINUATION
	  	2
			
	 Section 1.1
	  	 Organization; Continuation
	  	2
			
	 Section 1.2
	  	 Agreement; Effect of Inconsistencies with Act
	  	2
			
	 Section 1.3
	  	 Name
	  	2
			
	 Section 1.4
	  	 Effective Date
	  	2
			
	 Section 1.5
	  	 Term
	  	2
			
	 Section 1.6
	  	 Certificate of Limited Partnership
	  	3
			
	 Section 1.7
	  	 Registered Agent and Office
	  	3
			
	 Section 1.8
	  	 Principal Place of Business
	  	3
			
	 Section 1.9
	  	 Foreign Qualifications
	  	3
			
	 Section 1.10
	  	 Partner’s Qualifications
	  	3
		
	 ARTICLE 2. DEFINITIONS
	  	3
			
	 Section 2.1
	  	 General Interpretive Principles
	  	3
			
	 Section 2.2
	  	 Defined Terms
	  	4
		
	 ARTICLE 3. BUSINESS, PURPOSES AND POWERS
	  	15
			
	 Section 3.1
	  	 Business and Purpose
	  	15
			
	 Section 3.2
	  	 Powers
	  	15
			
	 Section 3.3
	  	 Limitations on Scope of Business
	  	17
		
	 ARTICLE 4. PARTNERS, CAPITAL CONTRIBUTIONS AND FINANCING
	  	17
			
	 Section 4.1
	  	 Identity of Partners and Percentage Interests
	  	17
			
	 Section 4.2
	  	 Capital Accounts
	  	18
			
	 Section 4.3
	  	 Additional Capital Contributions
	  	18
			
	 Section 4.4
	  	 Capital Accounts
	  	21
			
	 Section 4.5
	  	 Return of Capital Contributions
	  	22
			
	 Section 4.6
	  	 No Third Party Beneficiary Rights
	  	22
		
	 ARTICLE 5. ALLOCATIONS AND DISTRIBUTIONS
	  	23
			
	 Section 5.1
	  	 Distributions
	  	23
			
	 Section 5.2
	  	 Determination of Profits and Losses
	  	23

  

 i 

					
	 Section 5.3
	  	 General Allocation Rules
	  	24
			
	 Section 5.4
	  	 Priority Allocations
	  	25
			
	 Section 5.5
	  	 Income Tax Allocations/Other Accounting Principles
	  	28
			
	 Section 5.6
	  	 Transfers During Fiscal Year
	  	29
			
	 Section 5.7
	  	 Relevant Definitions
	  	29
			
	 Section 5.8
	  	 Income Tax Elections
	  	30
			
	 Section 5.9
	  	 Taxation as a Partnership
	  	30
			
	 Section 5.10
	  	 [Intentionally Omitted]
	  	30
			
	 Section 5.11
	  	 Assignees Treated as Partners
	  	30
			
	 Section 5.12
	  	 Tax Matters Partner
	  	30
		
	 ARTICLE 6. RIGHTS AND DUTIES OF PARTNERS
	  	31
			
	 Section 6.1
	  	 Management
	  	31
			
	 Section 6.2
	  	 Liability of Partners
	  	32
			
	 Section 6.3
	  	 Indemnification
	  	32
			
	 Section 6.4
	  	 Major Decisions
	  	32
			
	 Section 6.5
	  	 General Partner Compensation
	  	34
			
	 Section 6.6
	  	 Signing of Documents
	  	34
			
	 Section 6.7
	  	 Right to Rely on Authority of the General Partner
	  	35
			
	 Section 6.8
	  	 Outside Activities
	  	35
			
	 Section 6.9
	  	 Limitations on Powers of Partners
	  	35
			
	 Section 6.10
	  	 Prohibition Against Partition; Distribution in Kind
	  	35
			
	 Section 6.11
	  	 Limitations on the Company’s Activities
	  	36
		
	 ARTICLE 7. BOOKS OF ACCOUNT AND REPORTS; ACCESS TO RECORDS
	  	38
			
	 Section 7.1
	  	 Books, Records and Accounting Controls
	  	38
			
	 Section 7.2
	  	 Distribution of Financial Statements and Other Reports
	  	38
			
	 Section 7.3
	  	 Tax Information
	  	39
			
	 Section 7.4
	  	 Auditors
	  	39
			
	 Section 7.5
	  	 Banking
	  	39

  

 ii 

					
	 ARTICLE 8. TRANSFERS OF PARTNERSHIP INTERESTS AND ECONOMIC INTEREST
	  	39
			
	 Section 8.1
	  	 Partner’s or Assignee’s Right to Transfer
	  	39
			
	 Section 8.2
	  	 Conditions of Transfer
	  	40
			
	 Section 8.3
	  	 Partners’ Rights of First Offer
	  	40
			
	 Section 8.4
	  	 Non-Complying Transfers Void
	  	40
			
	 Section 8.5
	  	 Tag Along/Drag Along Rights
	  	40
			
	 Section 8.6
	  	 KSL Newco Put Right
	  	41
			
	 Section 8.7
	  	 KKR Partners Put Right
	  	41
			
	 Section 8.8
	  	 SHC North Beach Put Right
	  	42
			
	 Section 8.9
	  	 Additional Put Right Procedures
	  	42
			
	 Section 8.10
	  	 Closing Mechanics
	  	43
			
	 Section 8.11
	  	 Compliance with Loan Documents
	  	43
		
	 ARTICLE 9. ADMISSION OF ASSIGNEES
	  	43
			
	 Section 9.1
	  	 Rights of Assignees
	  	43
			
	 Section 9.2
	  	 Admission of Assignee as a Partner
	  	43
			
	 Section 9.3
	  	 Admission of Permitted Transferee as Partner
	  	44
		
	 ARTICLE 10. CONTRIBUTION EVENT; DEFAULT AND REMEDIES
	  	44
			
	 Section 10.1
	  	 Events of Default, Contribution Event
	  	44
			
	 Section 10.2
	  	 Percentage Interest Adjustment upon the Occurrence of a Contribution Event
	  	45
			
	 Section 10.3
	  	 Obligations of Defaulting or Non-Contributing Partner Continue
	  	46
			
	 Section 10.4
	  	 Violation of Section 6.4
	  	46
		
	 ARTICLE 11. [INTENTIONALLY OMITTED]
	  	46
		
	 ARTICLE 12. [INTENTIONALLY OMITTED]
	  	47
		
	 ARTICLE 13. CONFIDENTIALITY
	  	47
			
	 Section 13.1
	  	 In General
	  	47
			
	 Section 13.2
	  	 Protection
	  	47
			
	 Section 13.3
	  	 Statements Relating to Tax Treatment or Tax Structure
	  	48
			
	 Section 13.4
	  	 Survival
	  	48
		
	 ARTICLE 14. DISSOLUTION OF COMPANY
	  	48
			
	 Section 14.1
	  	 Events Causing Dissolution
	  	48

  

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	 Section 14.2
	  	 Winding Up
	  	49
			
	 Section 14.3
	  	 Application of Assets in Winding Up
	  	49
			
	 Section 14.4
	  	 Negative Capital Accounts
	  	50
			
	 Section 14.5
	  	 Termination
	  	50
		
	 ARTICLE 15. MISCELLANEOUS PROVISIONS
	  	50
			
	 Section 15.1
	  	 Subsidiary Entities
	  	50
			
	 Section 15.2
	  	 Amendment and Modification
	  	50
			
	 Section 15.3
	  	 Parties in Interest
	  	50
			
	 Section 15.4
	  	 Notices
	  	51
			
	 Section 15.5
	  	 Counterparts
	  	52
			
	 Section 15.6
	  	 Entire Agreement
	  	52
			
	 Section 15.7
	  	 Governing Law; Choice of Forum
	  	52
			
	 Section 15.8
	  	 Public Announcements
	  	53
			
	 Section 15.9
	  	 Headings
	  	53
			
	 Section 15.10
	  	 Binding Effect
	  	53
			
	 Section 15.11
	  	 Jury Trial Waiver
	  	53
			
	 Section 15.12
	  	 Attorneys’ Fees
	  	54
			
	 Section 15.13
	  	 Incorporation of Recitals
	  	54
			
	 Section 15.14
	  	 LLC Conversion
	  	54
			
	 Section 15.15
	  	 DC Corp REIT Election
	  	54
			
	 Section 15.16
	  	 Shareholders of DC Corp
	  	54
			
	 Section 15.17
	  	 Protective Actions
	  	54

  

					
	 EXHIBIT A
	  	-	  	North Beach Property Description
			
	 EXHIBIT B
	  	-	  	“Book-Up” to Partners’ Capital Accounts
			
	 EXHIBIT C
	  	-	  	Allocation Examples
			
	 EXHIBIT D
	  	-	  	Nominal Capital Contributions
			
	 EXHIBIT E
	  	-	  	Development Management Agreement
			
	 EXHIBIT F
	  	-	  	Guaranty Agreement

  

 iv 

 AMENDED AND RESTATED 
 LIMITED LIABILITY LIMITED PARTNERSHIP AGREEMENT 
  
 THIS AMENDED AND RESTATED LIMITED LIABILITY LIMITED PARTNERSHIP AGREEMENT (this “Agreement”) is made and entered into as of January 9, 2006 (the “Effective Date”), by and
among (i) DTRS NORTH BEACH DEL CORONADO, LLC, a Delaware limited liability company (hereinafter referred to as “SHC TRS”), (ii) KSL DC NEWCO, LLC, a Delaware limited liability company (hereinafter referred to as
“KSL Newco”), (iii) DCORO HOLDINGS, LLC, a Delaware limited liability company (hereinafter referred to as “KKR LP”) and (iv) HDC DC CORPORATION, a Delaware corporation (hereinafter referred to as
“DC Corp”). SHC TRS, KSL Newco, KKR LP and DC Corp are hereinafter referred to as the “Class A Limited Partners”. The General Partner and the Class A Limited Partners are hereinafter referred to as the
“Class A Partners”. DC Corp, SHC TRS and KSL Newco are hereinafter referred to as the “Class B Limited Partners”. The Class A Partners and the Class B Limited Partners are hereinafter referred to as the
“Partners”. 
  
 RECITALS 
  
 A. On August 8, 2005, certain of the Partners and other predecessor
partners formed CNL KSL North Beach Development, LP (the “Company”) as a Delaware limited partnership by filing the Certificate and entered into an Agreement of Limited Partnership on the same date (the “Original
Agreement”). The Company was formed to purchase the North Beach Property and to complete the North Beach Development Project. 
  
 B. On the date hereof, the Partners and/or certain of their affiliates have entered into that certain Amended and Restated Limited Partnership Agreement
(the “Hotel Partnership Agreement”) of SHC KSL Partners, L.P. (the “Hotel Partnership”) which governs such partners’ indirect ownership of the Hotel. 
  
 C. Pursuant to that certain Purchase and Sale Agreement, dated as of
October 31, 2005, by and among Recreation (as defined herein), KSL LP and SHC del Coronado, L.L.C. (the “Purchase Agreement”), the parties to this Agreement shall own the Partnership Interests described herein. 
  
 D. The parties hereto desire to enter into this Agreement for the purpose of
revising the Original Agreement to reflect the developments described in Recital C. The parties hereto further desire to amend and restate the Company’s certificate of limited partnership and to file a statement of qualification to
become a limited liability limited partnership. 

 NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements herein
contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Partners agree as follows: 
  
 ARTICLE 1. 
 FORMATION AND
CONTINUATION 
  
 Section 1.1 Organization;
Continuation. The Company was organized as a Delaware limited partnership pursuant to the Act on the date set forth in Recital A above. 
  
 Section 1.2 Agreement; Effect of Inconsistencies with Act. This Agreement amends and restates the Original Agreement in its entirety.
This Agreement supersedes the Original Agreement, which shall be of no further force or effect. The Partners agree to the terms and conditions of this Agreement, as it may from time to time be amended, supplemented or restated according to
its terms. The Partners intend that this Agreement shall be the sole source of the agreement among the parties with respect to the Property and the Company’s business and purpose. Except to the extent a provision of this Agreement expressly
incorporates federal income tax rules by reference to sections of the Code or Regulations or is expressly prohibited or ineffective under the Act, this Agreement shall govern, even when inconsistent with, or different from the provisions of the Act
or any other law. To the extent any provision of this Agreement is prohibited or ineffective under the Act, this Agreement shall be considered amended to the smallest degree possible in order to make such provision effective under the Act. If the
Act is subsequently amended or interpreted in such a way as to validate a provision of this Agreement that was formerly invalid, such provision shall be considered to be valid from the effective date of such interpretation or amendment. Each Partner
shall be entitled to rely on the provisions of this Agreement, and no Partner shall be liable to the Company or to any other Partner for any action or refusal to act taken in good faith reliance on this Agreement. The Partners and the Company agree
that the duties and obligations imposed on the Partners as such shall be those set forth in this Agreement, which is intended to govern the relationship among the Company and the Partners, notwithstanding any provision of the Act, fiduciary duties
or common law to the contrary. 
  
 Section 1.3
Name. The name of the Company shall be “HdC North Beach Development, LLLP”, and such name shall be used at all times in connection with the conduct of the Company’s business. The General Partner may, from time to
time, change the name of the Company upon notice to the other Partners. 
  
 Section 1.4 Effective Date. This Agreement shall become effective as of the Effective Date. 
  
 Section 1.5 Term. The Partnership shall continue until the Company is dissolved and its affairs wound up in accordance with this
Agreement and the Act. 
  

 2 

 Section 1.6 Certificate of Limited Partnership. On or before the date hereof, an
amended and restated Certificate was filed with the Secretary of State pursuant to the Act, together with a statement of qualification to become a limited liability limited partnership pursuant to Section 214 of the Act. The General Partner
shall take all other actions deemed by it to be necessary or appropriate from time to time to comply with all applicable requirements for the operation and, when appropriate, termination of the Company as a limited liability limited partnership
under the Act. 
  
 Section 1.7 Registered Agent and
Office. The Company’s registered agent for service of process and registered office in the State of Delaware shall be that Person and location reflected in the Certificate. The General Partner may, from time to time, change the
registered agent or office through appropriate filings with the Secretary of State. If the registered agent ceases to act as such for any reason or the registered office shall change, the General Partner shall promptly designate a replacement
registered agent or file a notice of change of address, as the case may be. 
  
 Section 1.8 Principal Place of Business. The Company’s principal place of business shall be located at the Hotel. The General Partner may change the location of the Company’s principal place of
business to anywhere within the United States from time to time. The General Partner shall make those filings and take those other actions required by applicable law in connection with the change and shall give notice to all Partners of the new
location of the Company’s principal place of business promptly after the change becomes effective. 
  
 Section 1.9 Foreign Qualifications. The Company shall qualify to do business as a foreign limited partnership in each jurisdiction in which the nature of its business requires such
qualification. The General Partner may select any Person permitted by applicable law to act as registered agent for the Company in each jurisdiction in which it is qualified to do business, and may replace any such Person from time to time.

  
 Section 1.10 Partner’s Qualifications.
Each Partner shall maintain its respective existence and good standing under the laws of its state of incorporation or formation, and its qualification to do business in such jurisdictions where such qualifications are required. 
  
 ARTICLE 2. 
 DEFINITIONS 
  
 Section 2.1 General Interpretive Principles. For purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires, (i) the terms defined in this Article
shall have the meanings assigned to them in this Article and include the plural as well as the singular, and the use of any gender herein shall be deemed to include the other genders; (ii) accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with GAAP (as defined herein); 

  

 3 

 
(iii) references in this Agreement to “Articles,” “Sections,” “subsections,” “paragraphs” and other subdivisions
without reference to a document are to designated Articles, Sections, subsections, paragraphs and other subdivisions of this Agreement; (iv) a reference to a subsection without further reference to a Section is a reference to such subsection as
contained in the same Section in which the reference appears, and this rule shall also apply to paragraphs and other subdivisions; (v) the words “hereto,” “herein,” “hereof,” “hereunder” and other words
of similar import refer to this Agreement as a whole and not to any particular provision; (vi) the word “including” means “including, but not limited to”; and (vii) all Schedules and Exhibits to this Agreement are
incorporated herein by this reference thereto as if fully set forth herein, and all references herein to this Agreement shall be deemed to include all such incorporated Schedules and Exhibits. 
  
 Section 2.2 Defined Terms. As used in this Agreement, the
following terms shall have the following respective meanings (unless otherwise expressly provided herein): 
  
 Act: The Delaware Revised Uniform Limited Partnership Act in its present form or as amended from time to time. 
  
 Actual Closing Costs: Actual costs incurred by the Company in
connection with the exercise of any North Beach Put Rights, including, without limitation, (i) any make-whole and/or prepayment penalties payable in connection with the refinancing of any indebtedness and the placing of new indebtedness in
connection with satisfying the North Beach Put Rights and (ii) all transfer, stamp and recording taxes imposed on the Transfer and all other closing costs. 
  

Additional Capital Contributions: The additional Capital Contributions required to be made by the Partners pursuant to
Section 4.3, including, as applicable, any Capital Contribution made by a Contributing Partner for a Non-Contributing Partner pursuant to Section 10.2. 
  
 Additional Contributions: As defined in Section 4.3(c). 
  
 Adjusted Basis: The basis for determining gain or loss for
federal income tax purposes from the sale or other disposition of property, as defined in Section 1011 of the Code. 
  
 Adjusted Capital Account Balance: As defined in Section 5.7(a). 
  
 Affiliate: and all derivations thereof, shall mean (a) as to any Person which is not an individual, any
other Person controlling, controlled by or under common control with such Person, including, without limitation, any partner, member, shareholder, officer or director of such Person, as the case may be, and (b) with respect to any Person who is
an individual, such individual’s parents, spouse, direct lineal or adoptive descendants, siblings, nieces, nephews and/or first cousins and/or one or more trusts created solely for 

  

 4 

 
the benefit of such individual or any such family members. For the purposes of this definition, the term “control” means the possession, directly
or indirectly, of the power to direct or cause the direction of management and policies of a Person, whether through ownership of voting securities or a partnership or membership interest, by contract or otherwise. 
  
 Agreement: This limited liability limited partnership agreement
in its present form or as amended, supplemented or restated from time to time. 
  
 Approved or Approved by the Class A Partners: Approved in writing (including e-mail) by the Class A Partners holding at least 60% of the Class A Percentage Interests, unless a lesser
percentage is herein specified. 
  
 Assignee: A
Person to whom a Partnership Interest is Transferred and who is not admitted as a Partner. 
  
 Bank Accounts: As defined in Section 7.5. 
  
 Business Day: Any day other than a Saturday, a Sunday, a day on which national banks in California or Illinois are not open for business or
are authorized by law to close. 
  
 Capital Account:
The capital account of a Partner maintained in accordance with Section 4.4. 
  
 Capital Call Notice: As defined in Section 4.3(b). 
  
 Capital Contribution: Any money or property from time to time contributed by a Partner to the Company, including the Initial Capital
Contribution and Additional Capital Contributions. 
  
 Capital Transaction: A transaction in which the Company (i) borrows money, (ii) sells, exchanges or otherwise disposes of all or any part of its Property, including a sale or other disposition pursuant to a
condemnation, or (iii) receives the proceeds of property damage insurance, or any other transaction that, in accordance with GAAP, is considered capital in nature. 
  
 Carrying Value: Carrying Value means, with respect to any asset, the Adjusted Basis of the asset, except as
follows: 
  
 (i) the initial Carrying Value of an
asset contributed by a Partner to the Company after the Effective Date shall be the gross fair market value of the asset, as agreed to by the Partners at the time the asset is contributed; 
  
 (ii) the Carrying Values of the Company’s assets shall
be adjusted to equal their respective gross fair market values, as reasonably determined by the Partners, 

  

 5 

 
as of the following times: (a) the acquisition of an additional interest in the Company by any new or existing Assignee or Partner in exchange for more
than a de minimis Capital Contribution; (b) the distribution by the Company to a Partner or an Assignee of more than a de minimis amount of property as consideration for all or part of a Partnership Interest or an Assignee’s
Economic Interest; and (c) the liquidation of the Company within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); but adjustments pursuant to clauses (a) and (b) above shall be made only if the Partners reasonably
determine that such adjustments are necessary or appropriate to reflect the relative economic interests of the Partners in the Company; 
  
 (iii) the Carrying Value of an asset of the Company distributed to a Partner shall be adjusted to equal the gross fair market value of the
asset on the date of distribution as reasonably determined by the Partners; and 
  
 (iv) the Carrying Values of the Company’s assets shall be increased (or decreased) to reflect any adjustments to the Adjusted Basis
of those assets pursuant to Sections 734(b) or 743(b) of the Code, but only to the extent that those adjustments are taken into account in determining Capital Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m) and
Section 4.4; but the Carrying Values shall not be adjusted pursuant to this clause (iv) to the extent the Partners reasonably determine that an adjustment pursuant to clause (ii) above is necessary or appropriate in connection
with a transaction that would otherwise result in an adjustment pursuant to this clause (iv). 
  
 If the Carrying Value of an asset is determined or adjusted pursuant to clauses (i), (ii) or (iv), such Carrying Value shall thereafter be adjusted by the Depreciation taken into account with respect to the asset
for purposes of computing Profit and Loss. 
  
 Certificate: The Certificate of Limited Partnership of the Company filed with the Secretary of State, as amended from time to time in accordance with the Act. 
  
 Class A Limited Partner or Class A Limited Partners: As defined in the Preamble. 
  
 Class A Partners: As defined in the Preamble. 

 
 Class A Partnership Interests: The Partnership
Interests of the Class A Partners. 
  
 Class A
Percentage Interests: The Percentage Interests of the Class A Partners. 
  
 Class B Limited Partners: As defined in the Preamble. 
  
 Class B Partnership Interests: The Partnership Interests of the Class B Limited Partners. 
  

 6 

 Class B Percentage Interests: The Percentage Interests of the Class B Limited Partners.

  
 Code: The Internal Revenue Code of 1986, as in
effect and hereafter amended. 
  
 Common Capital: A
Class A Partner’s initial Common Capital is reflected in Section 4.1(b). 
  
 Common Capital Balance: A Class A Partner’s Common Capital Balance, as of any day, shall equal the excess of: (x) the dollar value of the Common Capital assigned to such Class A
Partner under Section 4.1(b), over (y) the amount of cash distributed to such Class A Partner pursuant to Section 5.1(a)(iii) hereof. Such Common Capital Balance shall be decreased based on the date of any actual
distribution. In the event a Class A Partner transfers all or any portion of its Class A Partnership Interest in accordance with the terms of this Agreement, its transferee shall succeed to the Common Capital Balance to the extent it
relates to the transferred Class A Partnership Interest. 
  
 Company: The limited liability limited partnership continued pursuant to this Agreement, and any successor limited liability limited partnership that continues the business of the Company, and is a reformation or
reconstitution of the Company. 
  
 Completion
Guaranty: As defined in Section 1(c) of the Guaranty Agreement. 
  
 Contributing Partner: Any Class A Partner other than a Non-Contributing Partner. 
  
 Contribution Event: As defined in Section 10.1. 
  
 DC Corp Shares: All of the common stock of DC Corp owned by the equity owners of DC Corp. 
  
 Deadlock Response Period: As defined in
Section 4.3(c). 
  
 Defaulting Partner:
A Partner or Partners with respect to which an Event of Default has occurred and is continuing. 
  
 Demand: As defined in Section 4.3(d). 
  
 Depreciation: For each Fiscal Year, an amount equal to the depreciation, amortization or other cost recovery deduction allowable with
respect to an asset for such Fiscal Year, except that if the Carrying Value of an asset differs from its Adjusted Basis on the Effective Date or at the beginning of a subsequent Fiscal Year, Depreciation shall be determined in a manner permitted by
the Regulations promulgated under Section 704(c). To the extent consistent with such Regulations, Depreciation shall be an amount which bears the same ratio to the beginning Carrying Value as the federal income tax 

  

 7 

 
depreciation, amortization or other cost recovery deduction for the Fiscal Year (or part thereof) bears to such beginning Adjusted Basis. 
  
 Development Agreement: That certain Development Agreement dated
as of the Effective Date between the Company and KSL DC Development Management, LLC, attached hereto as Exhibit E. 
  
 Development Manager: KSL DC Development Management, LLC, a Delaware limited liability company. 
  
 Disabling Conduct: As defined in Section 6.3(a).

  
 Distribution or Distributions: A distribution of
cash by the Company to a Partner or an Assignee on account of a Partnership Interest pursuant to Section 5.1 or Section 14.3. 
  
 Document: As defined in Section 6.6. 
  
 Due Date: As defined in Section 4.3(b). 
  

Economic Interest: With respect to an Assignee, the Assignee’s rights to receive allocations of Profits and Losses and
Distributions. 
  
 Effective Date: As defined in the
Preamble. 
  
 Emergency Costs: Costs and expenses
required to (a) correct a condition that if not corrected would endanger imminently the preservation or safety of the Property or the safety of owners, tenants, guests or other persons lawfully on or using the Property, (b) avoid the
imminent suspension of any necessary service in or to the Property, or (c) prevent any of the Partners from being subjected imminently to criminal or substantial civil penalties or damages. 
  
 Environmental Indemnity Agreement: That certain Environmental
Indemnity Agreement dated as of the date hereof among GMAC and the Guarantors. 
  
 Equivalent Partner: As defined in Section 8.1(b). 
  
 Equivalent Percentage: As defined in Section 8.1(b). 
  
 Event of Default: As defined in Section 10.1. 
  
 Excluded Recourse Liability: As defined in
Section 4.3(d). 
  
 Fair Market Value:
For purposes of determining a North Beach Put Price, the amount at which a willing seller would sell and a willing buyer would buy the Property assuming that both parties are well-informed about the Property and the market for the 

  

 8 

 
Property, which amount shall be determined as of the date of the delivery of the applicable put notice or the Strategic/ROFO Sale Notice under the Hotel
Partnership Agreement and otherwise as follows: 
  
 (a) The Company and the party exercising a North Beach Put Right shall attempt in good faith to reach agreement as to the Fair Market Value of the Property. If such parties are unable to reach agreement as to such Fair Market Value within a
reasonable period, such parties shall attempt in good faith to agree on the appointment of a single appraiser who shall be instructed to determine such Fair Market Value within thirty (30) days after such appointment. 
  
 (b) If the Company and the party exercising a North Beach
Put Right are unable to agree to the appointment of a single appraiser, then each of such parties shall designate in writing an appraiser. Each such appraiser shall be instructed to submit to its counterpart, within thirty (30) days after
designation, its report setting forth such appraiser’s determination of the applicable Fair Market Value (the “Preliminary Appraised Value”). If the lower of the two Preliminary Appraised Values is equal to or greater than
ninety percent (90%) of the higher of such Preliminary Appraised Values, then the two such Preliminary Appraised Values shall be averaged and the result shall be the Fair Market Value. If the Fair Market Value is not determined pursuant to the
preceding sentence, the two appraisers shall within ten (10) days after their reports have been delivered be instructed to designate a third appraiser (the “Deciding Appraiser”). 
  
 (c) The Deciding Appraiser shall be instructed to deliver to
each of the Company and the party requesting an appraisal, within 30 days after the appointment of the Deciding Appraiser, its report setting forth its determination of which of the 2 Preliminary Appraised Values shall be the Fair Market Value. The
Deciding Appraiser shall be instructed that it must choose 1 of the two 2 Preliminary Appraised Values and may not determine any other value to be the Fair Market Value. The Deciding Appraiser’s determination shall be final and binding upon the
parties. 
  
 (d) Each appraiser appointed
pursuant to this Agreement shall be an independent, duly qualified appraiser affiliated with an established real estate appraisal company, and shall have at least five (5) years experience in performing appraisals of luxury hotel
properties which are located in California. 
  
 The costs and
expenses of an appraiser appointed pursuant to subsection (a), above, shall be borne by the Company and the party requesting a North Beach Put Right equally. Each of the Company and the party requesting a North Beach Put Right shall pay the costs
and expenses of the appraiser designated by such party pursuant to subsection (b), above, but the costs and expenses of the Deciding Appraiser shall be borne by the such parties equally. The Actual Closing Costs, other than the costs and 

  

 9 

 
expenses of an appraiser which shall be allocated as set forth in the preceding sentences, shall be deducted from the calculation of Fair Market Value.

  
 FF&E: Furniture, fixtures and equipment.

  
 Fiscal Quarter: Each calendar quarter in each
Fiscal Year. 
  
 Fiscal Year: The Fiscal Year means
(i) the calendar year, or (ii) any portion of the period described in clause (ii) for which the Company is required to allocate Profits, Losses or other items of Company income, gain, loss or deduction pursuant to Article 5 of
the Agreement. 
  
 GAAP: United States generally
accepted accounting principles consistently applied from accounting period to accounting period and within each such accounting period. 
  
 General Partner: SHC TRS in its capacity as the General Partner of the Company and any successor to SHC TRS as such general partner.

  
 GMAC: GMAC Commercial Mortgage Corporation, as
agent for the benefit of the certain lenders party to the GMAC Loan. 
  
 GMAC Loan: That obligations of the Company under that certain Building Loan Agreement dated as of the date hereof among the Company, GMAC and the other lenders party thereto, and any amendment, replacement or substitution
thereof. 
  
 Guarantor: Those certain Partners or
their Affiliates identified as Guarantors under the Guaranty Agreement or any substitutes or replacements thereof. 
  
 Guaranty Agreement: That certain Guaranty Agreement dated as of the date hereof among GMAC and each of the Guarantors, attached hereto as
Exhibit F, or any amendment, substitution or replacement thereof. 
  
 Guaranty Capital Call: As defined in Section 4.3(d). 
  
 Hotel: That certain 679-room luxury hotel located in Coronado, California, and known as the Hotel del Coronado, including all land,
improvements, fixtures, and appurtenances (as described in detail in the Hotel Partnership Agreement) owned by the Hotel Partnership (or one or more of its Subsidiary Affiliates). 
  
 Initial Capital Contributions: The Capital Contributions made by the Partners pursuant to
Section 4.2. 
  
 KKR Interests: As
defined in Section 8.7. 
  
 KKR North Beach Put
Right: As defined in Section 8.7. 
  

 10 

 KKR Partners: As defined in Section 8.7. 
  
 KKR Put Price: As defined in Section 8.7.

  
 KSL North Beach Put Right: As defined in
Section 8.6. 
  
 KSL LP Put Price: As
defined in Section 8.6. 
  
 Lender: The
lender under the GMAC Loan or such other lender to which the Company is obligated from time to time. 
  
 Limited Partner or Limited Partners: The Class A Limited Partners and the Class B Limited Partners. 
  
 Loan or Loans: Any obligation for borrowed money, and any
bonds, debentures, notes or other evidences of indebtedness that constitute an obligation and indebtedness of the Company or its Subsidiary Affiliates, including, without limitation, the GMAC Loan or any line of credit or other credit facility for
the Company’s (or its Subsidiary Affiliates’) working capital needs. 
  
 Loan Documents: Collectively, the security agreements, financing statements and all other related loan documents entered into in connection with a Loan. 
  
 Loan Guaranty: The obligation of a Guarantor pursuant to
any of the Loan Documents, including without limitation pursuant to the Guaranty Agreement or the Environmental Indemnity Agreement. 
  
 Losses: As defined in Section 5.2. 
  
 Management Rights: The rights, if any, of a Partner to participate in the management of the Company, including the rights to receive
information, to inspect and audit the books and records, and to vote on, consent to, or approve the action of the Company. 
  
 Maturity: With respect to any Loan, the maturity date of such Loan as set forth in the Loan Documents, including for this purpose the
maturity date or accelerated maturity date, if applicable, that results by virtue of an acceleration of the maturity date of a Loan pursuant to the terms of the Loan Documents. 
  
 Minimum Gain on Nonrecourse Liability: As defined in Section 5.7(b). 
  
 Minimum Gain on Partner Nonrecourse Debt: As defined in
Regulations Section 1.704-2(i). 
  
 Mortgage:
Any mortgage, deed of trust, or similar security document securing a Loan. 
  

 11 

 Necessary Expenditures: (a) all Emergency Costs, (b) all fees and reimbursements
owed by the Company under the Development Agreement and (c) all other expenditures whether or not of a recurring nature that are necessary for the Company to preserve, operate, maintain, improve or protect the Property or operate the business
of the Company, including insurance payments, real estate tax payments, interest payments on any Loans, utility costs, repair and maintenance costs, costs of compliance with federal, state and local laws, codes, rules or regulations, and any other
operating expenses or capital expenses provided for in the Development Agreement or otherwise Approved by the Class A Partners and including payment of the principal balance of a Loan upon its Maturity, but excluding payment of the principal
balance of a Loan prior to its Maturity, unless such payment is required pursuant to the terms of the Loan Documents or has otherwise been Approved by the Class A Partners. 
  
 Net Cash Flow: For any specified period, an amount equal to the sum of (i) all cash revenues received by
the Company (directly or through distributions from its Subsidiaries) during such period from any source and (ii) amounts set aside as reserves during earlier periods where, and to the extent, such reserves are determined by the General Partner
to be no longer reasonably necessary in the efficient conduct of the Company’s business (including its business conducted through its Subsidiaries, if any) reduced by the sum of (w) cash expenditures by the Company or its Subsidiaries
during such period for Development Fees (as defined in the Development Agreement), Development Costs (as defined in the Development Agreement), real estate taxes and other costs and expenses in connection with the normal conduct of the
Company’s business, (x) all payments by the Company or its Subsidiaries during such period for all costs and expenses (including legal fees) of obtaining a Loan and of principal of and interest due on all Loans and other obligations of the
Company for borrowed money to the extent approved pursuant to the terms of this Agreement and (y) such reserves as commercially reasonably established by the General Partner, but only to the extent the payments and expenditures described in
clauses (w) and (x) are not made from funds received as Capital Contributions or from cash reserves of the Company which were established during any earlier period. 
  
 Nominal Capital Contributions: As set forth on Exhibit D. 
  
 Non-Contributing Partner: A Partner or Partners with respect to
which a Contribution Event has occurred and is continuing. 
  
 Nondefaulting Partner: Any Partner other than a Defaulting Partner. 
  
 Nonrecourse Deductions: As defined in Regulations Section 1.704-2(b)(1). 
  
 North Beach Development Project: That certain limited term occupancy condominium project and related improvements currently under
construction on the Property and the related public improvements. 
  

 12 

 North Beach Property: The real property relating to the North Beach Property described on
Exhibit A hereto. 
  
 North Beach Put Rights:
Collectively or individually, as the context indicates, the KSL North Beach Put Right, the KKR North Beach Put Right and the Strategic North Beach Put Right. 
  
 Original Agreement: As defined in the Recitals. 
  
 Parallel Transfer: As defined in Section 8.1(c). 
  
 Partners: The Class A Partners and the Class B Limited Partners. 
  
 Partnership Interest: With respect to a Partner, the
Partner’s entire ownership interest in the Company and its Subsidiary Affiliates, including all of the Partner’s rights and obligations hereunder including, without limitation, its Economic Interest, Management Rights, voting rights and
the obligation to comply with the terms and provisions of this Agreement. 
  
 Percentage Interest: The percentage interest from time to time of each Partner in the Company, as set forth in Section 4.1, as such percentage interest is adjusted from time pursuant to any
provision of this Agreement that provides for such adjustment. 
  
 Permitted Transferee: An Affiliate of a Partner. 
  
 Person: An individual, corporation, trust, association, unincorporated association, estate, partnership, joint venture, limited partnership, limited liability company or other legal entity, including a governmental entity.

  
 Preferred Capital: A Class B Limited
Partner’s initial Preferred Capital is reflected in Section 4.1(c). 
  
 Preferred Capital Balance: A Class B Limited Partner’s Preferred Capital Balance, as of any day, shall equal the excess of: (x) the dollar value of the Preferred Capital assigned to such Class
B Limited Partner under Section 4.1(c), over (y) the amount of cash distributed to such Class B Limited Partner pursuant to Section 5.1(a)(ii) hereof. Such Preferred Capital Balance shall be decreased based on the date
of any actual distribution. In the event a Class B Limited Partner transfers all or any portion of its Class B Partnership Interest in accordance with the terms of this Agreement, its transferee shall succeed to the Preferred Capital Balance to the
extent it relates to the transferred Class B Partnership Interest. 
  
 Preferred Return: means twelve and one-half percent (12.5%) per annum of the average daily balance of each Class B Partner’s Preferred Capital Balance from the Effective Date and thereafter. The Preferred Return
shall be determined on the basis of a 

  

 13 

 
year of 365 or 366 days, as the case may be, for the actual number of days in the period for which the Preferred Return is being determined, on a cumulative
basis. The Partners agree that the Preferred Return is a market rate as of the Effective Time; provided, however, any Partner can require the Company to retain an independent reputable appraisal firm to determine the market rate for
the Preferred Return as of the Effective Date. 
  
 Profit: As defined in Section 5.2. 
  
 Prohibited Result: As defined in Section 15.17. 
  
 Property: shall mean all tangible and intangible property, real, personal, or mixed owned by the Company or in which the Company has a beneficial interest, including the North Beach Property. 

 
 Purchase Agreement: As defined in Recital C.

  
 Put Black-Out Period: As defined in
Section 8.9. 
  
 Recourse Liability: As
defined in Section 1(e) of the Guaranty Agreement. 
  
 Recreation: HdC Recreation Holdings I, LLC. 
  
 Regulations: The permanent and temporary regulations, and all amendments, modifications and supplements thereof, from time to time promulgated by the Secretary of the Treasury under the Code. 
  
 Secretary of State: The Secretary of State of the State of
Delaware. 
  
 Specially Designated National or Blocked
Person: (i) Persons designated by the U.S. Department of Treasury’s Office of Foreign Assets Control, or other governmental entity, from time to time as a “specially designated national or blocked person” or similar
status, (ii) a Person described in Section 1 of U.S. Executive Order 13224 issued on September 23, 2001, or (iii) a Person otherwise identified by government or legal authority as a Person with whom the Partners are prohibited
from transacting business. 
  
 Strategic
Interests: As defined in Section 8.8. 
  
 Strategic North Beach Put Right: As defined in Section 8.8. 
  
 Strategic REIT: means Strategic Hotel Capital, Inc. 
  
 Subsidiaries, or each a Subsidiary: such wholly-owned Persons, if any, formed by the General Partner as subsidiaries or subsidiary
Affiliates of the Company in connection with the business of the Company or any financing entered into by the Company, with each Partner hereto having the same or substantially similar rights under 

  

 14 

 
the governance or organizational documents of such Person as such Partner does under this Agreement. 
  
 Transfer and Transferred: A sale, assignment, transfer or other
disposition (voluntarily or by operation of law) of, or the granting or creating of a lien, encumbrance or security interest in, a Partnership Interest. 
  
 Unfulfilled Additional Contributions: As defined in Section 4.3(c). 
  
 ARTICLE 3. 
 BUSINESS, PURPOSES AND POWERS 
  
 Section 3.1 Business and Purpose. (a) The sole business and purpose of the Company shall be: 
  

(i) to acquire, own, hold, develop, construct, lease, operate, manage, maintain, mortgage, improve, repair, encumber, finance,
refinance, sell, redevelop, rehabilitate, improve and otherwise deal with and dispose of, directly or indirectly, through Subsidiaries, the Property; and 
  
 (ii) to conduct all activities reasonably necessary or desirable to accomplish the foregoing purposes and to do anything necessary or
incidental to any of the foregoing, which in each case, is not a breach of this Agreement; 
  
 (b) The Company may not engage in any other business or activity without the approval of all of the Class A Partners. 
  
 Section 3.2 Powers. Except as otherwise provided in this Section 3.2, the Company shall have all powers of a limited liability
limited partnership under the Act and the power to do all things necessary or convenient to operate its business and accomplish its purposes as described in Section 3.1, including the following: 
  
 (a) to hold, operate, manage and exercise rights with respect to all
Property; 
  
 (b) to sell, transfer, assign, convey, lease,
encumber or otherwise dispose of or deal with all or any part of the Property and any and all rights or interests therein; 
  
 (c) to incur expenses and to enter into and carry out contracts, agreements and guaranties necessary to accomplish the business and purposes of the
Company; 
  
 (d) to raise and provide such funds as may be
necessary to further the business and purposes of the Company and to borrow money, incur liabilities and issue promissory notes and other evidences of indebtedness, and to secure the same by security interest or other lien on all or any part of the
Property; 
  

 15 

 (e) to employ or retain, on behalf of the Company, such Persons as, the General Partner deems advisable
in the operation and management of the business of the Company, including such accountants, attorneys and consultants as the General Partner deems appropriate, on such commercially reasonable terms and at such commercially reasonable compensation as
the General Partner shall determine; 
  
 (f) to collect, receive
and deposit all sums due or to become due to the Company; 
  
 (g)
to hire and appoint agents and employees of the Company, to define their duties and to establish their compensation; 
  
 (h) to pay any and all taxes, charges and assessments that may be levied, assessed or imposed upon any Property; 
  
 (i) to demand, sue for, collect, recover and receive all goods, claims,
debts, moneys, interest and demands whatsoever now due or that may hereafter become due or belong to the Company, including the right to institute any action, suit, or other legal proceedings for the recovery of any property, or any part or parts
thereof, to the possession of which the Company may be entitled, and to make, execute and deliver receipts, releases and other discharges therefore under seal or otherwise; 
  
 (j) to make, execute, endorse, accept, collect and deliver any and all bills of exchange, checks, drafts and notes of the
Company; 
  
 (k) to defend, settle, adjust, compound, submit to
arbitration and compromise all actions, suits, accounts, reckonings, claims and demands whatsoever that now are or hereafter shall be pending between the Company and any Person (other than disputes between or among Partners), at law or in equity;

  
 (1) to form, organize, and operate the Subsidiaries in
accordance with their respective organizational documents and resolutions as in effect on the Effective Date or, if later, their respective dates of formation or organization; 
  
 (m) to enter into and conduct its activities in accordance with the Development Agreement and the GMAC Loan; 
  
 (n) to secure and maintain insurance against liability and property damage
with respect to the activities of the Company; and 
  
 (o) to do
and perform all acts and things necessary, appropriate, proper, advisable, incidental to, or convenient for, the furtherance and accomplishment of the business and purposes of the Company set forth in Section 3.1. 
  

 16 

 Section 3.3 Limitations on Scope of Business. Except for the authority expressly granted to the
General Partner in this Agreement, no Partner, attorney-in-fact, employee or other agent of the Company shall have any authority to bind or act for the Company or any other Partner in the carrying on of their respective businesses or activities.

  
 Section 3.4 GMAC Loan. The Partners acknowledge and agree
that, so long as the GMAC Loan is in effect, this Article 3 shall not be amended without GMAC’s prior written consent. 
  
 ARTICLE 4. 
 PARTNERS, CAPITAL
CONTRIBUTIONS AND FINANCING 
  
 Section 4.1 Identity of Partners
and Percentage Interests. 
  
 (a) Partners.
The Partners of the Company shall be the Class A Partners and the Class B Limited Partners. 
  
 (b) Class A Percentage Interests. The Class A Percentage Interests for the Class A Partners are as follows: 
  

							
	 Partner

	  	Class A Percentage
Interest

	 	 	Common Capital1

	 General Partner
	  	0.5000	%	 	 	—  
	 SHC TRS
	  	44.0686	%	 	$	4,806,000
	 KKR LP
	  	40.1865	%	 	$	4,334,000
	 KSL Newco
	  	14.2449	%	 	$	1,536,000
	 DC Corp
	  	1.0000	%	 	$	108,000

	1	Estimates—TBD at closing. The total equity for North Beach is approximately $24,600,000. The allocations among the Class A Partners and the Class B
Partners will be based upon the allocations that are applied in the Hotel Partnership Agreement. 

  

 17 

 (c) Class B Percentage Interests. The initial Class B Percentage Interests and Preferred
Capital of the respective Class B Limited Partners are as follows: 
  

							
	 Partner

	  	Class B Percentage
Interest

	 	 	Preferred Capital2

	 DC Corp
	  	71.6744	%	 	$	9,831,000
	 SHC LP
	  	14.0807	%	 	$	1,931,000
	 KSL Newco
	  	14.2449	%	 	$	1,954,000

  
 Section 4.2 Capital
Accounts. Upon the execution and delivery of this Agreement each Partner will have the Capital Account set forth on Exhibit B. 
  
 Section 4.3 Additional Capital Contributions. The Class A Partners shall be required to make Additional Capital Contributions to the Company,
for the purposes and in accordance with the procedures set forth below in this Section 4.3: 
  
 (a) Necessary Expenditures and Other Costs. If at any time and from time to time after the Effective Date, the General Partner determines
that the amount of the Company’s Necessary Expenditures exceeds the amount of funds then available to the Company from prior Capital Contributions, Property revenues, Loans and any reserves previously established by the Company, the
Class A Partners shall make Additional Capital Contributions to fund such Necessary Expenditures. All such Additional Capital Contributions shall be made by the Class A Partners in cash or current funds, pro rata, in proportion to their
respective Percentage Interests. 
  
 (b) Procedure For
Additional Capital Contributions Not Due to Deadlock. (i) If, as and when Additional Capital Contributions are (i) required as determined pursuant to Section 4.3(a) or (ii) Approved by the Class A Partners
pursuant to Section 6.4 hereof, the General Partner shall deliver to each Class A Partner a written notice requesting such Additional Capital Contributions (a “Capital Call Notice”). Any Capital Call Notice shall
specify the date (the “Due Date”) on or before which such funds are required by the Company, which shall be at least twenty-five (25) days after delivery of the Capital Call Notice except for Additional Capital Contributions
for Emergency Costs, which shall be payable within ten (10) days after delivery of the Capital Call Notice. The Capital Call Notice shall specify the use of the proceeds of the contributions to be made. Each Class A Partner shall, on or
before the Due Date, pay to the Company in cash or current funds such Class A Partner’s proportionate share of the amount specified in the Capital Call Notice in accordance with its Percentage Interest. For purposes of
Section 10.1(a), it 

	2	Estimates—TBD at closing. 

  

 18 

 shall be a Contribution Event as to a Class A Partner if the Class A Partner does not make the payment required
by any Capital Call Notice by the applicable Due Date. 
  
 (c)
Procedure For Additional Contributions In the Event of a Deadlock. In the event the General Partner is not able to obtain the Approval of the Class A Partners for an Additional Capital Contribution and the General Partner
determines that the failure to obtain Additional Capital Contributions would have a material and adverse effect on the Company, the General Partner may give written notice (a “Subscription Notice”) thereof to the Class A
Partners to such effect, setting forth in the Subscription Notice the amount or amounts which it believes to be required by the Company (the “Additional Contributions”), and the terms and conditions on which it proposes to obtain
the Additional Contributions. The terms and conditions of such Subscription Notice may include preferential rights on distributions and liquidation and class voting. The Subscription Notice shall include a term sheet detailing the terms of the
Additional Contributions (the “Term Sheet”). The Class A Partners shall have the right, for a period of thirty (30) days after the date of the Subscription Notice (the “Deadlock Response Period”), to
subscribe for their pro rata share (in accordance with their respective Class A Percentage Interests) of the Additional Contributions. During the Deadlock Response Period, the Class A Partners may commit to subscribe for some or all of any
Additional Contributions not taken up within the Deadlock Response Period (the “Unfulfilled Additional Contributions”). Any Unfulfilled Additional Contributions shall be either (i) sold to the Class A Partners pursuant to
their commitments to purchase such Unfulfilled Additional Contributions or (ii) re-offered to the other Class A Partners who have subscribed to make Additional Contributions as nearly as practicable in accordance with their Percentage
Interests. If the Class A Partners do not subscribe for all the requested Additional Contributions, the General Partner may offer to third parties all or some of the Additional Contributions in accordance with the terms and conditions offered
to the Partners. If, as a condition to subscribing for such Additional Contributions, a third party conditions its purchase on the acquisition of a minimum amount of Additional Contributions, the General Partner may, in its sole discretion, reduce
on a pro rata basis the amounts which the subscribing Class A Partners may acquire. If the General Partner is unable to obtain subscriptions for all of the amount of Additional Contributions (whether from existing Class A Partners or other
persons) within ninety (90) days, the General Partner may issue a revised Subscription Notice in accordance with this Section 4.3(c). Once Additional Contributions are fully subscribed, the General Partner shall prepare an amendment
to this Agreement reflecting any terms or any provisions included in the Term Sheet which require such an amendment, if any, and such amendment shall be deemed in full force and effect and the rights of all Partners shall be modified in accordance
therewith. 
  

 19 

 (d) Satisfaction of Loan Guaranty Obligations. 
  
 (i) General. In the event that a Guarantor receives a
demand under or with respect to any Loan Guaranty, including without limitation any Completion Guaranty, any guaranty with respect to a Recourse Liability (other than an Excluded Recourse Liability as described in subsection (iii) below), and
any guaranty pursuant to the Environmental Indemnity Agreement (each, a “Demand”), such Guarantor (other than the General Partner or its Equivalent Partner) shall notify the General Partner within 3 Business Days after receipt of
such Demand. Except for Excluded Recourse Liabilities, if any Demand is made to all of the Guarantors on a several basis in accordance with their respective Percentage Interests, the amount required to satisfy such Demand shall be deemed a Necessary
Expenditure of the Company to be funded by the Class A Partners as an Additional Capital Contribution. 
  
 (ii) Capital Calls for Loan Guaranty Obligations. If a Demand has been made to less than all Guarantors, the General Partner may
send a Capital Call Notice to any Guarantor that has not received a Demand setting forth the Guarantor’s several portion of the Loan Guaranty based on such Guarantor’s (or its Equivalent Partner’s) Percentage Interest. Such amount
shall be paid by the Guarantor to the Company, or as otherwise directed by the General Partner, within 5 Business Days after receipt of the Capital Call Notice. It shall be a Contribution Event as to any Guarantor (or its Equivalent Partner) that
does not make the payment required by any Capital Call Notice within the time period set forth in the preceding sentence. For purposes of calculating the 60-day notice period set forth in Section 10.2 hereof, each Contribution Event
contemplated by this Section 4.3(d) shall be deemed to occur on the date of the receipt of a Demand by the applicable Guarantor, or in the case of a Guarantor that has not received a Demand, on the date that the first Demand was received
by any other Guarantor with respect to a particular Loan Guaranty. Delivery of a Capital Call Notice pursuant to this Section 4.3(d)(i) and the Additional Capital Contribution arising therefrom are referred to herein as a
“Guaranty Capital Call”. 
  
 (iii) Excluded Recourse Liabilities. In the event that a Demand is made with respect to a Recourse Liability, and such Demand has been made to less than all Guarantors, then such Demand shall trigger a Guaranty Capital Call except
under the following circumstances (referred to herein as “Excluded Recourse Liabilities”): (A) the Recourse Liability arose from an action or omission of a Partner or its Affiliate taken without a reasonable belief by such
party that the action or omission was in the best interests of the Company; or (B) the Recourse Liability arose from an action or omission of a Partner or its Affiliate acting in its individual capacity and not on behalf of the Company as a
Partner or as the Development Manager (examples of which would include (solely for purposes of illustration and without limitation) delivery by a Guarantor of financial statements of such Guarantor containing material misrepresentations or transfers
of ownership interests in the Company as contemplated in Section 1(e)(ix) of the Guaranty Agreement). Accordingly, any amounts paid by a Guarantor under the 

  

 20 

 
circumstances described in the immediately preceding sentence shall not affect the Capital Accounts of the Partners and shall not be subject to dilution
under Section 10.2. 
  
 (e) Obligations to Make
Additional Capital Contributions. The obligations of the Class A Partners to make Additional Capital Contributions pursuant to this Section 4.3 are several and not joint. If no Class A Partner makes an Additional
Capital Contribution as required pursuant to clauses (a) and (b) of this Section 4.3, the General Partner shall attempt to raise such Additional Capital Contributions pursuant to Section 4.3(c). Notwithstanding anything to
the contrary herein, no Class A Partner shall be legally compelled to make Additional Capital Contributions pursuant to this Agreement, it being understood that a failure to make an Additional Capital Contribution may result in dilution in
accordance with Section 10.2. 
  
 Section 4.4 Maintenance
of Capital Accounts. (a) The Company shall establish and maintain a Capital Account for each Partner in accordance with the provisions of Section 704(b) of the Code and the Regulations thereunder. 
  
 (b) Each Partner’s Capital Account shall be maintained in accordance
with the following provisions: 
  
 (i) Each
Partner’s Capital Account shall be credited (increased) with the amounts of such Partner’s Capital Contributions (taking into account the amount of cash contributed to the Company by such Partner and the Carrying Value of any property
contributed to the Company by such Partner (net of any liabilities secured by such contributed property that the Company is considered to assume or take subject to under Section 752 of the Code)), such Partner’s distributive share of
Profits and any items in the nature of income or gain which are specially allocated to the Partner pursuant to Article 5, and the amount of recourse liabilities of the Company assumed by such Partner as described in
Section 1.704-1(b)(2)(iv)(c) of the Regulations or which are secured by any property distributed by the Company to such Partner; 
  
 (ii) Each Partner’s Capital Account shall be debited (decreased) with the amounts of cash and the Carrying Value of any property
distributed by the Company to such Partner pursuant to any provision of this Agreement (net of any liabilities secured by such contributed property that the Company is considered to assume or take subject to under Section 752 of the Code), such
Partner’s distributive share of Losses and any items in the nature of expenses or losses which are specially allocated to the Partner pursuant to Article 5, and the amount of any liabilities of the Partner assumed by the Company as
described in Section 1.704-1(b)(2)(iv)(c) of the Regulations; 
  
 (iii) If all or a portion of a Partner’s Partnership Interest is Transferred in accordance with the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it
relates to the Transferred Partnership Interest; and 
  

 21 

 (iv) In determining the amount of any liability for purposes of this
Section 4.4(b), Section 752(c) of the Code and any other applicable provisions of the Code and Regulations shall be taken into account. 
  
 This Section 4.4(b) and other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with
Regulations Section 1.704-1(b), and shall be interpreted and applied in a manner consistent with such Regulations. If the General Partner, with the advice of the Company’s independent certified public accountants or legal counsel,
reasonably determines that it is prudent to modify the manner in which the Capital Accounts, or any charges or credits thereto (including charges or credits relating to liabilities which are secured by contributions or distributed property or which
are assumed by the Company or by Partners), are computed in order to comply with such Regulations, the General Partner may make such modification, but only if it is not likely to have a material effect on the amounts to be distributed to any Partner
pursuant to Section 5.1 or pursuant to Section 14.3 upon the dissolution of the Company. The General Partner, with the Approval of the Class A Limited Partners, also shall make any adjustments that may be necessary or
appropriate to maintain equality between the Capital Accounts of the Partners and the amount of capital reflected on the Company’s balance sheet, as computed for book purposes, in accordance with Regulations Section 1.704-1(b)(2)(iv)(g).

  
 Section 4.5 Return of Capital Contributions. No Partner
or Assignee shall be entitled to demand the return of the Partner’s or Assignee’s Capital Account or Capital Contribution at any particular time, except upon dissolution of the Company. No Partner or Assignee shall be entitled at any time
to demand or receive property other than cash. Unless otherwise provided by law, no Partner or Assignee shall be personally liable for the return or repayment of all or any part of any other Partner’s or Assignee’s Capital Account or
Capital Contribution, it being expressly agreed that any such return of capital pursuant to this Agreement shall be made solely from the assets (which shall not include any right of contribution from a Partner or Assignee) of the Company.

  
 Section 4.6 No Third Party Beneficiary Rights. The
provisions of this Article 4 are not intended to be for the benefit of any creditor or any other Person (other than a Partner in its, his or her capacity as such) to whom any debts, liabilities or obligations are owed by (or who otherwise has
any claim against) the Company or any of the Partners; and no such creditor or other Person shall obtain any right under any of such provisions or shall by reason of any of such provisions make any claim in respect of any debt, liability or
obligation (or otherwise) against the Company nor any of the Partners. Nothing in this Section 4.6 shall impair or affect any security or pledge agreement granted by the Company to the holder of a Loan. 
  

 22 

 ARTICLE 5. 
 ALLOCATIONS AND DISTRIBUTIONS 
  
 Section 5.1 Distributions. Subject to applicable restrictions in any Loan Documents, Net Cash Flow shall be distributed as follows: 
  
 (a) Net Cash Flow. The General Partner shall distribute Net Cash Flow among the Partners, quarterly within
forty-five (45) days after the end of each Fiscal Quarter in the following order of priority: 
  
 (i) First, to the Class B Limited Partners, in proportion to their respective Class B Percentage Interests, until each Class B Limited
Partner has been distributed under this Section 5.1(a)(i) an amount equal to its aggregate Preferred Return; 
  
 (ii) Second, to the Class B Limited Partners, in proportion to their respective Class B Percentage Interests, until each Class B Limited
Partner’s Preferred Capital Balance is reduced to zero; 
  
 (iii) Third, to the Class A Partners, in proportion to their respective Common Capital balances, until each Class A Partner’s Common Capital Balance is reduced to zero; and 
  
 (iv) The balance, to the Class A Partners, in
proportion to their respective Class A Percentage Interests. 
  
 (b) Liquidating Distributions. Subject to Section 14.3, notwithstanding any provision of this Section 5.1 to the contrary, in the event the Company (or a Partner’s Partnership Interest therein) is
“liquidated” within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g), then a distribution of all cash and property, regardless of source, shall be made pursuant to this Section 5.1(b) to the Partners (or
such Partner, as appropriate), in accordance with their positive Capital Account balances, after all contributions, distributions and allocations have been made for all periods pursuant to this Agreement, in compliance with Treasury Regulations
Section 1.704-1(b)(2)(ii)(b)(2). 
  
 Section 5.2 Determination
of Profits and Losses. For purposes of this Agreement, the profit (“Profit”) or loss (“Loss”) of the Company for each Fiscal Year shall be the net income or net loss of the Company, as the case may be, for
such Fiscal Year as determined for Federal income tax purposes, but computed with the following adjustments: 
  
 (a) without regard to any adjustment to basis pursuant to Section 743 of the Code (except as provided in Section 5.2(g)); 
  
 (c) by taking into account items of deduction attributable to any Property of
the Company based upon the Carrying Value of the Property; 
  

 23 

 (d) by including as an item of gross income any tax-exempt income received by the Company; 
  
 (e) by treating as a deductible expense any expenditure of the Company
described in Section 705(a)(2)(B) of the Code; 
  
 (f) in the
event the Carrying Value of a Property is adjusted pursuant to clauses (ii) or (iii) of the definition thereof, the amount of such adjustment shall be taken into account as gain or loss from the disposition of such Property, shall be
treated as net gain or net loss referred to in paragraph (b) of this Section 5.2(f) and shall be excluded from the computation of Profit and Loss; and 
  
 (g) to the extent an adjustment to the Adjusted Basis of any asset of the Company pursuant to Sections 734(b) or 743(b) of
the Code is required by Regulations Section 1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as a result of a distribution other than in complete liquidation of a Partner’s Partnership Interest, the amount
of such adjustment shall be treated as an item of gain (if the adjustment increases the Adjusted Basis of the asset) or loss (if the adjustment decreases the Adjusted Basis of the asset) from the disposition of the asset shall be treated as net gain
or net loss referred to in paragraph (b) of this Section 5.2(g) and shall be excluded from the computation of Profits and Losses. 
  
 (h) Notwithstanding any other provisions of this definition, any items which are specially allocated pursuant to Section 5.4 hereof shall not
be taken into account in computing Profits or Losses. 
  
 Section 5.3
General Allocation Rules. 
  
 (a)
Profits. Except as otherwise provided in Section 5.4, Profits for any Fiscal Year shall be allocated among the Partners as follows: 
  

(i) First, to the Class B Limited Partners, in the same ratio and in reverse order of the allocations made to the Class B Limited
Partners under Section 5.3(b)(iii) for each Fiscal Year to the extent of the excess of (a) the allocations to each Class B Limited Partner of Losses pursuant to Section 5.3(b)(iii) for all current and all prior Fiscal
Years, over (b) allocations to each Class B Limited Partner of Profits pursuant to this Section 5.3(a)(i) for the current and all prior Fiscal Years; 
  
 (ii) Second, to the Class A Partners, in the same ratio and in reverse order of the allocations made to
the Class A Partners under Section 5.3(b)(ii) for each Fiscal Year to the extent of the excess of (a) the allocations to each Class A Partner of Losses pursuant to Section 5.3(b)(ii) for the current and all
prior Fiscal Years, over (b) allocations to each Class A Partner of Profits pursuant to this Section 5.3(a)(ii) for the current and all prior Fiscal Years; 
  

 24 

 (iii) Third, to the Class B Limited Partners, in proportion to their respective Class B
Percentage Interests, in an amount equal to the excess (if any) of: (x) the Preferred Return; over (y) any amounts previously allocated under Section 5.3(a)(i); and 
  
 (iv) Thereafter, to the Class A Partners, in proportion to their Class A Percentage Interests.

  
 (b) Losses. Except as otherwise provided in
Section 5.4, Losses for any Fiscal Year shall be allocated among the Class A Partners as follows: 
  
 (i) First, to the Class A Partners, in the same ratio and in reverse order of the allocations made to the Class A Partners under
Section 5.3(a)(iv) for each Fiscal Year to the extent of the excess of (a) the allocations to each Class A Partner of Profits pursuant to Section 5.3(a)(iv) for the current and all prior Fiscal Years, over
(b) allocations to such Class A Partner of Losses pursuant to this Section 5.3(b)(i) for the current and all prior Fiscal Years; 
  
 (ii) Second, to the Class A Partners, in proportion to and to the extent of the aggregate of each Class A
Partner’s respective Common Capital and any Additional Capital Contributions of such Partner after the Effective Date; 
  
 (iii) Third, to the Class B Limited Partners in proportion to and to the extent of the amounts necessary to reduce each Class B Limited
Partner’s respective Adjusted Capital Account Balance to zero; and 
  
 (iv) Thereafter, to the Class A Partners in proportion to their respective Class A Percentage Interests. 
  
 Section 5.4 Priority Allocations. The following allocations shall be made in the following order of priority: 
  
 (a) Minimum Gain Chargeback - Nonrecourse Liability. If there
is a net decrease in the Minimum Gain on Nonrecourse Liability during any Fiscal Year, the Partners shall be allocated items of income and gain for the Fiscal Year, before any other allocation of Company items described in Code Section 704(b)
is made for the Fiscal Year (and, if necessary subsequent Fiscal Years), in the amounts and in the proportions required by Regulations Sections 1.704-2(f) and 1.704-2(j)(2)(i). The allocations referred to in this paragraph shall be interpreted and
applied to satisfy the requirements of Regulations Section 1.704-2(f). 
  
 (b) Minimum Gain Chargeback - Partner Nonrecourse Debt. If there is a decrease in the Minimum Gain on Partner Nonrecourse Debt during a Fiscal Year, then any Partner who has a share of the Minimum Gain
on Partner Nonrecourse Debt at the beginning of the Fiscal Year shall be allocated items of income and gain for the Fiscal 

  

 25 

 
Year, before any other allocation of Company items described in Code Section 704(b) is made for the Fiscal Year (and, if necessary, subsequent Fiscal
Years), in the amounts and in the proportions required by Regulations Sections 1.704-2(i)(4) and 1.704-2(j)(2)(ii). The allocations referred to in this paragraph shall be interpreted and applied to satisfy the requirements of Regulations
Section 1.704-2(i)(4). 
  
 (c) Qualified Income
Offset. In the event a Limited Partner unexpectedly receives an adjustment, allocation or distributions described in Regulations Section 1.704-1(b)(ii)(d)(4), (5), or (6) which causes or increases a negative Adjusted Capital
Account Balance as of the end of any Fiscal Year, then items of income and gain for the Fiscal Year (and, if necessary, subsequent Fiscal Years) shall be allocated as quickly as possible among all Limited Partners who have such negative balances in
their Adjusted Capital Account Balances, pro rata, in proportion to their respective negative balances to the extent necessary to reduce the negative balance of each Limited Partner’s Adjusted Capital Account Balance to an amount equal to zero;
provided that an allocation pursuant to this Section 5.4(c) shall be made only if and to the extent that such Limited Partner would have such a negative balance in the Partner’s Adjusted Capital Account Balance after all other
allocations provided for in this Article 5 have been tentatively made as if this Section 5.4(c) were not a part of this Agreement. The allocations referred to in this paragraph shall be interpreted and applied to satisfy the
requirements of Regulations Section 1.704-1(b)(2)(ii)(d)(3). 
  
 (d) Gross Income Allocation. Each Class A Partner who has a deficit Capital Account at the end of any Fiscal Year which is in excess of the sum of the Partner’s share of Minimum Gain, the Partner’s share
of Partner Minimum Gain, and the amount such Partner is obligated to restore pursuant to the provisions of this Agreement shall be specially allocated items of Company income and gain in the amount of such excess as quickly as possible, provided
that an allocation pursuant to this Section 5.4(d) shall be made only if and to the extent that such Partner would have a deficit Capital Account in excess of such sum after all other allocations provided for in this Article 5
have been made as if Section 5.4(c) and this Section 5.4(d) were not a part of this Agreement. 
  
 (e) Nonrecourse Deductions. Nonrecourse Deductions for any Fiscal Year shall be specially allocated among the Partners, pro rata, in
accordance with the Profits or Losses allocated to them. 
  
 (f)
Partner Nonrecourse Debt Deductions. Partner Nonrecourse Deductions with respect to Partner Nonrecourse Debt shall be specially allocated among the Partner or Partners who bear the economic risk of loss with respect to such Partner
Nonrecourse Debt in the amounts and in the proportions required by Regulations Section 1.704-2(i)(1). The allocations referred to in this paragraph shall be interpreted and applied to satisfy the requirements of Regulations
Section 1.704-2(i). 
  

 26 

 (g) Allocation of Nonrecourse Indebtedness. Indebtedness of the Company for purposes of
Code Section 752 and Treasury Regulations Section 1.752-3 shall be allocated for each taxable year of the Company in accordance with the following: (i) first, in accordance with the amount of minimum gain of each Partner determined in
accordance with the provisions of Treasury Regulations Section 1.704-2, (ii) second, in accordance with the amount of Code Section 704(c) gain of each Partner determined in accordance with the provisions of Code Section 704(c)
and Treasury Regulations Section 1.704-3 including any “reverse Section 704(c) gain” described on Exhibit B, and (iii) any remaining nonrecourse indebtedness shall be allocated in accordance with the Class A
Percentage Interests; provided that the Company shall allocate Nonrecourse Indebtedness to the Class B Limited Partners to the extent necessary to prevent each Class B Limited Partner from having a “deemed distribution” in excess of such
Class B Limited Partner’s basis in its Partnership Interest. Each Partner hereby agrees to take no action without the approval of the other Partners which would shift the allocation of Nonrecourse Indebtedness among the Partners. 
  
 (h) Basis Adjustments. In any case where an adjustment to the
Adjusted Basis of any Company asset pursuant to Sections 734(b) or 743(b) of the Code is required (pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(2) or Regulations 1.704-1(b)(2)(iv)(m)(4)), to be taken into account in determining Capital
Accounts because of a distribution to a Partner in complete liquidation of the Partner’s interest in the Company, the amount of such adjustment to Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of
the asset) or loss (if the adjustment decreases such basis), and such gain or loss shall be specially allocated among the Partners in accordance with their Percentage Interests in the event that (i) Regulations
Section 1.704-1(b)(2)(iv)(m)(2) applies, or (ii) the Partners to whom such distribution was made in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies. 
  
 (i) Loss Limitation. Notwithstanding any provision of this Agreement to the contrary, in no event shall any
allocation of Loss or item thereof be made to any Limited Partner to the extent such allocation would create or increase a deficit balance in such Partner’s Adjusted Capital Account Balance. Any Loss or item thereof the allocation of which is
limited pursuant to the preceding sentence shall be allocated, subject to the provisions of this paragraph, to the other Partners. 
  
 (j) Ameliorative Allocations. The term “Regulatory Allocations” shall mean the allocations set forth in Section 5.4(a)
through Section 5.4(h). Offsetting special allocations of Company income, gain, loss or deduction shall be made so that, after such offsetting allocations are made, each Partner’s Capital Account is, to the extent possible, equal to
the Capital Account such Partner would have had if the Regulatory Allocations were not included in this Agreement. For this purpose, future Regulatory Allocations under Section 5.4(a) and Section 5.4(b) that are likely to
offset current Regulatory Allocations under Section 5.4(e) and Section 5.4(f) shall be taken into account. 
  

 27 

 Section 5.5 Income Tax Allocations/Other Accounting Principles. (a) For purposes of Sections 702 and
704 of the Code, or the corresponding sections of any future Federal internal revenue law, or any similar tax law of any state or other jurisdiction, the Company’s profits, gains and losses for Federal income tax purposes, and each item of
income, gain, loss or deduction entering into the computation thereof, shall be allocated among the Partners, to the extent possible, in the same proportions as the corresponding “book” items are allocated pursuant to
Section 5.3. 
  
 (b) Notwithstanding the provisions of
Section 5.5(a), each item of taxable income, gain, loss or deduction attributable to (i) any contributed property, and (ii) any other property of the Company the Carrying Value of which has been adjusted pursuant to clauses
(ii) or (iii) of the definition of Carrying Value, shall be allocated among the Partners in accordance with Section 704(c) of the Code, using such methods permitted by Section 704(c) of the Code and the Regulations thereunder as
may be selected by all the Partners, on the advice of the Company’s independent certified public accountants, so as to take into account the variation, at the time of contribution or adjustment to Carrying Value, between the Adjusted Basis and
the Carrying Value of such property, as required by Regulations Section 1.704-1(b)(4)(i) and Section 1.704-3. 
  
 (c) Notwithstanding any language in the Agreement to the contrary, the Partners hereto agree as of the Effective Date to adjust the Carrying Value of the
Property under Section 1.704-1(b)(2)(iv) of the Regulations to reflect fair market value of the Property because of the recapitalization of the Partnership Interests in Company into Class A Partnership Interests and Class B Partnership
Interests and to adjust (“book-up”) the Capital Accounts of the Partners to reflect the adjustment to the Carrying Value of the Property. The Carrying Value of the Property, each Partner’s Capital Account, and the “book-up”
to each Partner’s Capital Account, and the allocation of the adjusted Carrying Value among all the assets comprising the Property, all as agreed upon by the Partners in their commercially reasonable discretion, are reflected on Exhibit
B. The Partners hereby agree to use the “Traditional Method” under Section 1.704-3(b)(i) of the Regulations to take into account the variation between the adjusted Carrying Value of the Property (as allocated among the assets) and
the Adjusted Basis of such assets. 
  
 (d) In addition,
notwithstanding the provisions of Section 5.5(a), if any portion of the net gain from a Capital Transaction allocated among the Partners pursuant to Section 5.5(a) is characterized as ordinary income under the recapture
provisions of the Code, each Partner’s distributive share of taxable gain from the sale of the property that gave rise to such profit (to the extent possible) shall include a proportionate share of the recapture income equal to that
Partner’s share of prior cumulative Depreciation deductions with respect to the property that gave rise to the recapture income. In no event, however, shall any Partner be allocated ordinary income hereunder in excess of the amount of gain
allocated to the Partner under this Agreement. Any ordinary income that is not allocated to a Partner due to the gain limitation described in the previous sentence 

  

 28 

 
shall be allocated among those Partners whose shares of total gain on the sale, exchange or other disposition of the property exceed their respective shares
of Depreciation from those Company assets being disposed of, in proportion to their relative shares of the total allocable gain. 
  
 Section 5.6 Transfers During Fiscal Year. In the event of the Transfer of all or any part of a Partnership Interest (in accordance with the
provisions of this Agreement) at any time other than the end of a Fiscal Year, the share of net profit or net loss and items of income, gain, loss and expense (in respect of the Partnership Interest so Transferred) shall be allocated between the
transferor and the transferee as if the Partnership closed its books on the date of the transfer as described in Regulations Section 1.706-1(c). If during any Fiscal Year the Percentage Interests of the Partners are adjusted pursuant to any
provision of this Agreement that provides for such adjustment, the share of Profit or Loss of the Company for such Fiscal Year which is to be allocated among the Partners in proportion to their Percentage Interests shall be allocated among the
Partners in the same manner as provided in this Section 5.6 in the case of a Transfer of a Partnership Interest. 
  
 Section 5.7 Relevant Definitions. 
  
 (a) Adjusted Capital Account Balance. The term “Adjusted Capital Account Balance” shall mean with respect to any Partner or
Assignee, the balance, if any, in such Partner’s or Assignee’s Capital Account as of the end of the relevant Fiscal Year, after giving effect to the following adjustments: 
  
 (i) Credit to such Capital Account any amounts which such Partner or Assignee is obligated to restore
pursuant to any provision of this Agreement or is deemed to be obligated to restore pursuant to the penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and 
  
 (ii) Debit to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4),
1.704-1(b)(2)(ii)(d)(5) and 1.704-1(b)(2)(ii)(d)(6) of the Regulations. 
  
 The foregoing definition of “Adjusted Capital Account Balance” is intended to comply with the provisions of Section 1.704-1(b)(2)(ii)(A) of the Regulations and shall be interpreted consistently therewith. 
  
 (b) Minimum Gain. The term “Minimum Gain”
shall mean the aggregate amount of gain, if any, that would be realized by the Company if, in a taxable transaction, it disposed of all Company property subject to Nonrecourse Liabilities of the Company (as defined in Regulations
Section 1.704-2(b)(3)) in full satisfaction thereof (and for no other consideration). The Partners intend that Minimum Gain on Nonrecourse Liability shall be determined in accordance with the provisions of Regulations
Section 1.704-2(d)(1). 
  

 29 

 (c) Partner Minimum Gain. The term “Partner Minimum Gain” shall mean the
aggregate amount of gain, if any, that would be realized by the Company if, in a taxable transaction, it disposed of all Company property encumbered by Mortgages securing Partner Nonrecourse Debt of the Company (i.e., a nonrecourse debt for which
one or more of the Partners bears the economic risk of loss, and defined in Regulations Section 1.704-2(b)(4)), in full satisfaction thereof (and for no other consideration). The Partners intend that Partner Minimum Gain shall be determined in
accordance with the provisions of Regulations Section 1.704-2(i)(3). 
  
 Section 5.8 Income Tax Elections. In the event of a Transfer of all or part of a Partnership Interest (or of the interest of a partner or member in a partnership or limited liability company which is a Partner) while
this Agreement is in effect, the transferring Partner may (but shall not be obligated to) require the Company to make the election described in Section 754 of the Code. 
  
 Section 5.9 Taxation as a Partnership. The Company shall be treated as a partnership for federal income tax purposes,
and no Partner shall take any action inconsistent with such classification. 
  
 Section 5.10 [Intentionally Omitted] 
  
 Section 5.11 Assignees Treated as Partners. For all purposes of this Article 5, but for no other purpose, an Assignee of a Partnership Interest shall be treated as a Partner and each reference in this Article
5 to the Partners shall be deemed to include Assignees. 
  
 Section
5.12 Tax Matters Partner. The General Partner shall be the “tax matters partner” of the Company pursuant to Section 6231(a)(7) of the Code (the “Tax Matters Partner”). The Tax Matters Partner shall be
authorized and required to represent the Company (at the expense of the Company) in connection with all examinations of the affairs of the Company by any federal, state or local tax authorities, including any resulting administrative and judicial
proceedings, and to expend funds of the Company for professional services and costs associated therewith, and shall act in a manner consistent with its fiduciary duties to all Partners. The Tax Matters Partner shall take all actions necessary to
preserve the rights of the Partners with respect to audits and shall provide all Partners with notices of all such proceedings and other information as required by law. The Tax Matters Partner shall keep the Partners timely informed of its
activities under this Section 5.12. The Tax Matters Partner may prepare and file protests or other appropriate responses to such audits affecting the Company. The Tax Matters Partner shall select counsel to represent the Company in
connection with any audit conducted by the Internal Revenue Service or by any state or local authority. All costs and expenses incurred in connection with the foregoing activities, including legal and accounting costs, shall be borne by the Company.
Each Partner agrees to cooperate with the Tax Matters Partner and to do or refrain from doing any or all things reasonably required by the Tax Matters Partner in connection with the conduct of all such 

  

 30 

 
proceedings; provided, however, each Partner shall have the right to participate in administrative proceedings, to receive copies of all
information with respect to audits of the Company and to act in its own interest with respect to audit of its returns. 
  
 Section 5.13 Allocation Examples. Set forth on Exhibit C are hypothetical examples of the effect of the allocation provisions of Article 5,
including without limitation, Section 5.3. 
  
 ARTICLE 6.

 RIGHTS AND DUTIES OF PARTNERS 
  
 Section 6.1 Management. Subject to the provisions of Section 6.4, the business and affairs of the Company shall be managed under the
direction of the General Partner, who may exercise all powers of the Company and perform or authorize the performance of all lawful acts which do not by the Act or this Agreement require the consent of the Class A Limited Partners. The General
Partner on behalf of the Company is hereby authorized to enter into the Development Agreement and “Developer” pursuant to the Development Agreement is hereby delegated certain duties and obligations thereunder and is hereby authorized to
exercise such duties and obligations without further authorization (except as set forth in the Development Agreement). Matters requiring consent or approval of the “Owner” pursuant to the Development Agreement shall be decided by the
General Partner except any such decisions that would be considered Major Decisions hereunder. All of the Partners hereby approve the GMAC Loan and authorize the Company to borrow up to $59,000,000.00 under the GMAC Loan. The General Partner, on
behalf of the Company, is hereby authorized by all of the Partners to enter into the GMAC Loan and to execute and deliver all documents (of whatever kind of nature and, in each case, both original and amendatory) required by GMAC, including, without
limitation, promissory notes or amendatory, supplemental or additional collateral documents and deeds of trust as the General Partner may deem necessary, desirable or appropriate, all in such forms and containing such terms and conditions as the
General Partner may deem advisable and in the best interest of the Company. The General Partner on behalf of the Company is hereby authorized to enter into the GMAC Loan, which is hereby approved by all the Partners. The General Partner shall also
be responsible for the implementation of Major Decisions that are Approved by the Class A Partners. All acts of the General Partner within the scope of its authority shall bind the Company. The General Partner shall be SHC TRS. If the Strategic
Partners’ aggregate Class A Percentage Interest is less than ten percent (10%) (as the same shall be equitably adjusted in the future for future issuances of Partnership Interests), the Class A Partners, as a Major Decision, may
remove SHC TRS as the general partner. In such event, any Class A Partner (including the Strategic Partners) shall have the right to nominate, and, as a Major Decision, appoint a new general partner from among the Partners. If, in such event,
SHC TRS is replaced 

  

 31 

 
as the general partner, the Strategic Partners shall be entitled to exercise the KKR North Beach Put Right as if it applied to the Strategic Partners.

  
 Section 6.2 Liability of Partners. Except as otherwise
provided in Section 4.2 and Section 4.3, no Partner shall be obligated to make Capital Contributions to the Company. No Partner shall have any personal liability with respect to the liabilities or obligations of the Company.
The failure of the Company to observe any formalities or requirements relating to the exercise of its powers or the management of its business or affairs under this Agreement or the Act shall not be grounds for imposing personal liability on the
Partners for liabilities or obligations of the Company. 
  
 Section 6.3
Indemnification. (a) To the fullest extent permitted by the laws of the State of Delaware, each of the Partners shall be entitled to indemnity from the Company for any losses or expenses (including commercially reasonable legal fees and
costs of investigation) incurred by it with respect to any claim arising out of any act performed by it within the scope of the authority (if any) conferred on it by this Agreement or by the Company or the General Partner, except for acts by such
Partner of fraud, gross negligence, misrepresentation or willful misconduct (“Disabling Conduct”). 
  
 (b) No Partner or any Affiliate of any Partner shall be liable to the Company or any Partner for any loss or liability arising out of any act or omission
of such Partner on behalf of the Company unless such act or omission constitutes Disabling Conduct. 
  
 Section 6.4 Major Decisions. Notwithstanding anything in this Agreement to the contrary, and in addition to any decisions which, pursuant to the terms of this Agreement, require the consent
of the Partners, none of the following decisions involving the conduct of the business and affairs of the Company (the “Major Decisions”) shall be made unless proposed by the General Partner and Approved by the Class A
Partners: 
  
 (a) subject to Sections 8.6, 8.7, and
8.8, and except for the sale of condominiums in the ordinary course of the Company’s business in accordance with the Development Agreement, directly or indirectly selling, leasing or otherwise directly or indirectly disposing of or
transferring all or substantially all of the Property, or granting a Mortgage, pledge, encumbrance, lien or security interest in or on, all or any substantial part of the Property and/or assets of the Company, including the granting of options and
rights of first refusal. 
  
 (b) creating, incurring, assuming,
extending, materially modifying or otherwise becoming liable with respect to any Loan (including guarantees of the indebtedness or other obligations of any Person or of any Affiliate of the Company), other than (i) draws under the GMAC Loan in
an amount not in excess of the amount of capital required for the completion of the North Beach Development Project in accordance with the Development Agreement and the budget attached thereto (including any Permitted Variances to such budget, as
defined in the Development Agreement), (ii) to the extent no 

  

 32 

 
such line of credit or other credit facility is in place, Loans not in excess of One Million Dollars ($1,000,000) in the aggregate in the ordinary course of
the Company’s business and (iii) in the event the General Partner, in its sole discretion, determines to utilize indebtedness in connection with honoring a North Beach Put Right; 
  
 (c) issuance of additional Partnership Interests, except (i) as set
forth in Sections 4.3(c) and 10.2 and (ii) in the event the General Partner determines, in its sole discretion, to issue additional Partnership Interests in connection with honoring a North Beach Put Right; 
  
 (d) acquiring any material real property, whether improved or unimproved or
any interest therein; 
  
 (e) amending or waiving any material
rights in any agreement the entering into of which was a Major Decision, except as set forth in Section 15.2; 
  
 (f) material tax matters (including Federal and income items and elections); 
  
 (g) assigning any Property in trust for the benefit of creditors; 
  
 (h) confessing a judgment against the Company or its assets, or any portion
thereof, except as otherwise provided in any Loan Documents incurred on or before the Effective Date; 
  
 (i) entering into or materially amending, a contract between the Company, on the one hand, and a Partner, the Development Manager or any Affiliate of a
Partner, the Development Manager or the Company, on the other hand, or paying fees or other compensation (other than as expressly provided for in the Development Agreement which is hereby Approved by the Class A Partners) to a Partner, the
Development Manager or an Affiliate of a Partner, the Development Manager or the Company; 
  
 (j) entering into, materially modifying, materially amending, or terminating any development management or construction agreement for the Property, including the Development Agreement; 
  
 (k) except as otherwise provided in Article 14, dissolving,
liquidating and winding-up the affairs of the Company; 
  
 (l)
commencing, settling or dismissing litigation by or against the Company (other than proceedings against a Partner to enforce the Partner’s obligations under this Agreement), the outcome of which could have a material impact on the business or
operations of the Company or the Property; 
  
 (m) causing the
Company to engage in any business or activity other than those referred to in Section 3.1; 
  

 33 

 (n) requesting any Additional Capital Contributions for any amounts other than Necessary
Expenditures, provided, however, that (i) if the General Partner determines to utilize financing to honor the North Beach Put Rights but is unable to obtain financing on a commercially reasonable basis, the General Partner may
call for Additional Capital Contributions from the Class A Partners (other than the Class A Partner exercising its North Beach Put Right) without the consent of the Class A Partners and (ii) the General Partner may, in its sole
discretion, call for Additional Capital Contributions under Section 4.3(d) hereof without the consent of the Class A Partners; 
  
 (o) any capital expenditure in excess of the amounts permitted by the Development Agreement or the budget attached thereto (including any Permitted
Variances to such budget, as defined in the Development Agreement); 
  
 (p) any merger or consolidation with or into any Person or establishment of joint ventures, partnerships or other non-wholly owned Subsidiaries; 
  
 (q) applying Net Cash Flow to pay down the principal of any Loan other than any working capital line of credit or similar credit facility or any
indebtedness incurred in connection with honoring a North Beach Put Right, other than at Maturity or as otherwise required pursuant to the terms of any Loan Documents; 
  
 (r) appointment of a new general partner in accordance with Section 6.1; 
  
 (s) initial condominium sales prices determined at the time of the filing of
the condominium documents and any subsequent material change in condominium sales prices (which for the purposes of this subsection shall mean a variation of more than ten percent (10%)), the material terms of the condominium declaration, bylaws and
other material documents or agreements relating thereto and the form of unit sales contract, except for immaterial changes that do not affect the condominium sales prices, except as permitted above, and to correct ministerial errors; and 

 
 (t) any agreement or contract to do any of the foregoing except as
otherwise Approved. 
  
 Section 6.5 General Partner
Compensation. The General Partner shall not be compensated, as such, for its services as the general partner. However, the General Partner shall be reimbursed by the Company for all commercially reasonable out of pocket expenses paid or
incurred by it in the performance of its duties under this Agreement. 
  
 Section 6.6 Signing of Documents. The General Partner is authorized, in the name and on behalf of the Company, to sign and deliver all contracts, agreements, leases, notes, mortgages and other documents and instruments
(collectively, “Documents”) which are necessary, appropriate or convenient for the conduct of the Company’s day-to-day 

  

 34 

 
business and the furtherance of its purposes or which are necessary, appropriate or convenient to carry out Major Decisions Approved by the Class A
Partners pursuant to Section 6.4. 
  
 Section 6.7 Right
to Rely on Authority of the General Partner. No Person dealing with the General Partner shall be required to determine the authority of the General Partner to make any undertaking on behalf of the Company, or to determine any fact or
circumstance bearing upon the existence of the authority of the General Partner. Every Document executed by the General Partner shall be conclusive evidence in favor of every Person relying thereon or claiming thereunder that: 
  
 (a) at the time of the execution or delivery of the Document, the Company was
in existence and this Agreement was in full force and effect; 
  
 (b) the Document was duly approved by the General Partner or the Class A Partners in accordance with this Agreement and is binding upon the Company; and 
  
 (c) the General Partner was duly authorized and empowered to execute and deliver the Document for and on behalf of the
Company. 
  
 Section 6.8 Outside Activities. Each Partner and
any Person who is an Affiliate of a Partner may engage or hold interests in other business ventures of every kind and description for the Partner’s or the Affiliate’s own account, whether or not such business ventures are in direct or
indirect competition with the business of the Company and whether or not the Company has any interest therein. Neither the Company nor any of the Partners shall have any rights by virtue of this Agreement in such independent business ventures or to
the income or profits derived therefrom. 
  
 Section 6.9 Limitations
on Powers of Partners. Except as expressly authorized by this Agreement, no Partner shall, directly or indirectly, (i) resign, retire or withdraw from the Company, (ii) dissolve, terminate or liquidate the Company,
(iii) petition a court for the dissolution, termination or liquidation of the Company, or (iv) cause any property of the Company to be subject to the authority of any court, trustee or receiver (including suits for partition and
bankruptcy, insolvency and similar proceedings). 
  
 Section 6.10
Prohibition Against Partition; Distribution in Kind. Each Partner irrevocably waives any and all rights the Partner may have to maintain an action for partition with respect to any Property or any right to take any other action that
otherwise might be available to such Partner for the purpose of severing such Partner’s interest in the assets held by the Company from the interest of the other Partners. A Partner, regardless of the nature of its contribution, has no right to
demand and receive any distribution from the Company in any form other than cash. 
  

 35 

 Section 6.11 Limitations on the Company’s Activities. The Company shall do all things necessary
to preserve and keep in full force and effect its existence, rights (charter and statutory) and franchises; provided, however, that the Company shall not be required to preserve any such right or franchise if: the General Partner shall determine
that the preservation thereof is no longer desirable for the conduct of its business and that the loss thereof is not disadvantageous in any material respect to the Company. The failure of the Company to comply with any of the covenants contained in
this Agreement shall not affect the status of the Company as a separate legal entity or the limited liability of the Partners. The Company shall, except as otherwise permitted or set forth in this Agreement (including, without limitation, as a Major
Decision): 
  
 (i) correct any known misunderstanding regarding
its separate identity and not identify itself as a division of any other Person; 
  
 (ii) maintain its bank accounts, books of account, books and records separate from those of any other Person except as required by the Loan Documents, file its own tax returns (to the extent the Company is required to
file any tax returns) except to the extent that it is required by law to file consolidated tax returns; 
  
 (iii) maintain its own records, books, resolutions and agreements; 
  
 (iv) not commingle its funds or assets with those of any other Person nor participate in any cash management system with any
other Person; 
  
 (v) hold its assets in its own name; 

 
 (vi) conduct its business in its own name or in a name franchised or
licensed to it by an entity other than an Affiliate and strictly comply with all organizational formalities to maintain its separate existence, except for services rendered under a business management services agreement with an Affiliate that
complies with the terms contained in subsection (xxi) below, so long as the manager, or equivalent thereof, under such business management services agreement holds itself out as an agent of the Company; 
  
 (vii) (A) maintain its financial statements, accounting records and
other entity documents separate from those of any other Person, (B) in its financial statements, show its assets and liabilities separate and apart from those of any other Person except as required by GAAP in connection with the preparation of
consolidated financial statements, and (C) not permit its assets to be listed as assets on the financial statement of any other Person except as required by GAAP in connection with the preparation of consolidated financial statements;
provided, however, that any such consolidated financial statements referenced in clause (A) or (C) above shall contain a note indicating that it is a separate entity and that its separate assets and liabilities are neither
available to 

  

 36 

 
pay the debts of the consolidated entity nor constitute obligations of the consolidated entity; 
  
 (viii) not engage directly or indirectly in any business other than the actions required or permitted to be performed under
Section 3.1 or this Section 6.11; 
  
 (ix)
pay its own liabilities and expenses out of its own funds and assets; 
  
 (x) observe all limited partnership formalities, as applicable; 
  
 (xi) have no indebtedness other than the GMAC Loan; 
  
 (xii) not assume or guarantee or, become obligated for the debts of any other Person, hold out its credit as being available to satisfy the obligations of any other Person or pledge its assets for the benefit of any
other Person other than in connection with development of the Property; 
  
 (xiii) not acquire obligations or securities of its Partners or any other Affiliate; 
  
 (xiv) allocate fairly and reasonably any overhead expenses that are shared with any Affiliate, including, but not limited to, paying for shared office space and services performed by any employee of an Affiliate;

  
 (xv) maintain and use separate stationery, invoices and checks
bearing its name. The stationery, invoices, and checks utilized to collect its funds or pay its expenses shall bear its own name and shall not bear the name of any other entity unless such entity is clearly designated as being the other entity
agent; 
  
 (xvi) not pledge its assets for the benefit of any
other Person other than in connection with financings of the Property; 
  
 (xvii) hold itself out and identify itself as a separate and distinct entity under its own name or in a name franchised or licensed to it by an entity other than an Affiliate and not as a division or part of any other Person, except for
services rendered under a business management services agreement with an Affiliate that complies with the terms contained in subsection (xxi) below, so long as the manager, or equivalent thereof, under such business management services
agreement holds itself out as an agent of the Company; 
  
 (xviii)
maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual assets from those of any other Person; 
  
 (xix) not make loans to any Person or hold evidence of indebtedness issued by any other Person (other than cash and
investment-grade securities issued by an entity that is not an Affiliate of or subject to common ownership with such entity); 
  

 37 

 (xx) not identify its Partners or any Affiliate of any of them, as a division or part of it, and not
identify itself as a division of any other Person; 
  
 (xxi) not
enter into or be a party to, any transaction with its members, or Affiliates except in the ordinary course of its business and on terms which are intrinsically fair, commercially reasonable and are no less favorable to it than would be obtained in a
comparable arm’s-length transaction with an unrelated third party (it being agreed that the Development Agreement satisfies the foregoing condition); 
  
 (xxii) not have any of its obligations guaranteed by any Affiliate except as contemplated by the GMAC Loan; 
  
 (xxiii) not form, acquire or hold any subsidiary other than Subsidiaries in
connection with the development of the Property; and 
  
 (xxiv)
maintain an arm’s length relationship with its Affiliates and the Partners (it being agreed that Development Agreement satisfies the foregoing condition). 
  

ARTICLE 7. 
 BOOKS OF ACCOUNT AND
REPORTS; ACCESS TO RECORDS 
  
 Section 7.1 Books, Records and
Accounting Controls. The Company will: 
  
 (a) Books
and Records. Make and keep books, records and accounts which, in reasonable detail, accurately and fairly reflect the assets, liabilities and operations of the Company, in accordance with GAAP. 
  
 (b) Internal Accounting Controls. Maintain a system of internal
accounting controls sufficient to provide reasonable assurance that (a) transactions are executed in accordance with management’s general or specific authorization; (b) transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP; and (c) recorded assets will be compared with actual assets at reasonable intervals and appropriate action will be taken with respect to any differences. 
  
 Section 7.2 Distribution of Financial Statements and Other Reports.

  
 The General Partner shall cause the Company to prepare and
deliver to each Partner the following financial reports with respect to the Company: (i) within sixty (60) days after the end of each Fiscal Quarter (or such earlier date required under the Loan Documents), unaudited consolidated quarterly
financial statements, including a balance sheet, a statement of income and expense and a statement of cash flows, (ii) concurrently with the delivery to the holder of a Mortgage encumbering the Property, a copy of all financial statements and
other reports delivered by the Company to such holder, and (iii) within ninety (90) days after the end of each Fiscal Year, audited financial statements certified by an independent public accountant, including a balance sheet, a statement
of income 

  

 38 

 
and expense and a statement of cash flows, and the information necessary to enable the Partner to complete such Partner’s federal and state income tax
returns for such Fiscal Year. Notwithstanding the foregoing, the General Partner shall be entitled to rely upon, and incorporate into such statements, the financial statements and reports prepared by Development Manager under the Development
Agreement, and, for so long as KSL Newco or an Affiliate of KSL Newco is the Development Manager, the General Partner shall not be responsible for any delays in the delivery to the Partners of the reports described in this Section 7.2 if
and to the extent that there was any delay in the Development Manager’s delivery of the corresponding financial statements and reports under the Development Management Agreement. 
  
 Section 7.3 Tax Information. The General Partner will cause the Company to provide the Partners with draft Schedules
K-1 (and similar forms) and such additional information as the General Partner reasonably determines is necessary to support the Company’s tax reporting positions not less than thirty (30) days prior to the date the Company intends to file
its tax returns, as well as copies of the Partnership’s income tax returns and such other information as the Partners reasonably may require to satisfy their tax reporting and filing obligations. 
  
 Section 7.4 Auditors. The General Partner shall choose the external
auditors of the Company who shall be independent from the General Partner or its Affiliates, or as otherwise agreed to by all the Class A Partners. It is however understood that each Partner shall have the right to have the Company’s
financial statements audited by its independent auditors at its cost and expenses. 
  
 Section 7.5 Banking. Subject to the requirements of the Loan Documents, all funds of the Company shall be deposited in its name in such commercial bank or invested in such federally-insured savings and loan account or
accounts, in such U.S. Treasury obligations, or in such bank certificates of deposit, as the General Partner may determine (the “Bank Accounts”), and all funds of the Company shall not be commingled with the funds of another Person.
All withdrawals from any such Bank Account shall be made upon a check or order signed by any individual designated by the General Partner from time to time; but the General Partner may restrict the amounts that can be withdrawn by any such
individual. All such withdrawn funds shall only be used for Company purposes as provided in this Agreement and in accordance with the terms hereof. 
  
 ARTICLE 8. 
 TRANSFERS OF PARTNERSHIP
INTERESTS AND ECONOMIC INTEREST 
  
 Section 8.1 Partner’s or
Assignee’s Right to Transfer. (a) Except as expressly permitted in this Agreement, no Partner shall Transfer all or any part of its Partnership Interest. 
  

 39 

 (b) If at any time a Partner of the Hotel Partnership Transfers, directly or indirectly, all or any
portion of its Hotel Partnership Interests to any purchaser or transferee (including a Permitted Transferee), its Equivalent Partner hereunder shall Transfer the Equivalent Percentage of its Partnership Interests in the Company to the same purchaser
or transferee of the Hotel Partnership Interests. For purposes of this Agreement, “Equivalent Partner” means the same entity that is listed as a Partner in the Hotel Partnership Agreement (or any successor or assignee thereof);
provided that SHC TRS shall be deemed the Equivalent Partner of both SHC del GP, LLC and SHC del LP, LLC. A Partner’s “Equivalent Percentage” of the Partnership Interests to be transferred hereunder shall be the same Percentage
Interest which is Transferred under the Hotel Partnership Agreement; provided that the Percentage Interest of SHC del GP, LLC and SHC del LP, LLC under the Hotel Partnership Agreement shall be aggregated for purposes of determining the Equivalent
Percentage of SHC TRS pursuant to this Agreement. 
  
 (c)
Transfers of a Partnership Interest pursuant to Section 8.1(b) above are referred to from time to time herein as “Parallel Transfers”. 
  
 Section 8.2 Conditions of Transfer. Each Parallel Transfer shall be subject to all of the conditions of transfer set
forth in Section 8.2 of the Hotel Partnership Agreement. 
  
 Section 8.3 Partners’ Rights of First Offer. If the Transfer of Hotel Partnership Interests that gives rise to a Parallel Transfer hereunder is subject to the right of first offer provisions of
Section 8.3 of the Hotel Partnership Agreement, then such Parallel Transfer shall be subject to such provisions with respect to the Partnership Interests transferred hereunder. Each Offering Notice delivered under Section 8.3
of the Hotel Partnership shall include or be deemed to include the price payable for the Partnership Interests Transferred hereunder and the other terms and conditions of the Transfer set forth in Section 8.3 of the Hotel Partnership
Agreement, and the Partnership Interests transferred hereunder shall be offered together with the Hotel Partnership Interests under the same procedures set forth in Section 8.3 of the Hotel Partnership Agreement. 
  
 Section 8.4 Non-Complying Transfers Void. Any attempted direct or
indirect Transfer of all or any part of a Partner’s Partnership Interest or an Assignee’s Economic Interest that does not comply with the provisions of Section 8.2 hereof shall be null and void and of no legal effect.

  
 Section 8.5 Tag Along/Drag Along Rights. (a) Tag Along
Right. If a Partner under the Hotel Partnership Agreement exercises its tag along rights under Section 8.5 of the Hotel Partnership Agreement, the Equivalent Partner hereunder shall be deemed to have exercised tag along rights with
respect to the Parallel Transfer hereunder with all of the rights and obligations of a Tag Along Partner set forth in Section 8.5 of the Hotel Partnership Agreement. Accordingly, any tag along notice delivered by a Partner under
Section 8.5 of the Hotel Partnership Agreement shall include or be deemed to include an 

  

 40 

 
election by the Equivalent Partner hereunder to be treated as a Tag Along Partner and to sell the equivalent number of shares (on a relative basis) as sold
by such Partner under Section 8.5 of the Hotel Partnership Agreement. 
  
 (b) Drag Along Right. If the General Partner of the Hotel Partnership exercises its Drag Along Right under Section 8.5(b) of the Hotel Partnership Agreement, the General Partner of the Partnership
hereunder may exercise such Drag Along Right with respect to the Partnership Interests sold hereunder in the same manner and under the same terms and conditions set forth in Section 8.5(b) and (c) of the Hotel Partnership Agreement.

  
 Section 8.6 KSL Newco Put Right. (a) Subject to
Section 8.9, in the event that KSL LP exercises its KSL LP Put Right under Section 8.6 of the Hotel Partnership Agreement, KSL Newco shall automatically (without the giving of notice or any other action) be deemed to have
exercised the right (the “KSL North Beach Put Right”) to require the Company to purchase from KSL Newco the same portion of the Class A Partnership Interests and Class B Partnership Interests that are to be sold under the KSL
LP Put Right. The terms, conditions and procedures of the KSL North Beach Put Right, including with respect to closing, payment of the Put Price, the ability of the Company to sell the Property in lieu of honoring the KSL Put Price and the
allocation of Partnership Interests to be sold between Class A and Class B Partnership Interests, shall be the same or substantially similar to those set forth in Section 8.6 of the Hotel Partnership Agreement with respect to the
KSL LP Put Right; provided that the price of the Partnership Interests to be sold in the KSL North Beach Put Right shall be the “KSL Put Price” as set forth herein, notwithstanding the method for calculating the Put Price in the
Hotel Partnership Agreement (including any adjustments made as a result of the termination of the Hotel Management Agreement (as defined in the Hotel Partnership Agreement)). The “KSL Put Price” equals the amount that KSL Newco
would have received had the Property been sold for cash for an amount equal to the Fair Market Value of the Property and the resulting proceeds distributed in accordance with 5.1(a) hereof. 
  
 Section 8.7 KKR Partners Put Right. (a) Subject to
Section 8.9, in the event that KKR LP or an Affiliate of KKR LP exercises its KKR Partners Put Right under Section 8.7 of the Hotel Partnership Agreement, KKR LP and Recreation (the “KKR Partners”) shall
automatically (without the giving of notice or any other action) be deemed to have exercised the right (the “KKR North Beach Put Right”) to require the Company to purchase the entire Partnership Interest of KKR LP (collectively with
all of Recreation’s stock in DC Corp that is required to be purchased pursuant to the Hotel Partnership Agreement, the “KKR Interests”). The terms, conditions and procedures of the KKR North Beach Put Right, including with
respect to closing, payment of the Put Price and the ability of the Company to sell the Property in lieu of honoring the KKR Put Price, shall be the same as those set forth in Section 8.7 of the Hotel Partnership Agreement 

  

 41 

 
with respect to the KKR Partners Put Right; provided that the price of the KKR Interests to be sold in the KKR North Beach Put Right shall be the
“KKR Put Price” as set forth herein. The “KKR Put Price” equals the amount that the KKR Partners would have received had the Property been sold for cash for an amount equal to (i) the Fair Market Value of the Property
and the resulting proceeds distributed in accordance with 5.1(a) hereof minus (ii) 50% of the combined federal and state income taxes attributable to KKR LP’s ownership interest in DC Corp as if the proceeds of such sale were
distributed to the Partners in accordance with clause (i) and in turn by DC Corp to its equity owners. 
  
 Section 8.8 SHC North Beach Put Right. (a) In the event that the Strategic Partners shall have exercised the Strategic Partners ROFO/Sale Right under Section 8.8 of the Hotel Partnership
Agreement, SHC TRS shall automatically (without the giving of notice or any other action) be deemed to have exercised the right (the “Strategic North Beach Put Right”) to require the Company to purchase all of the common stock in DC
Corp held by the Strategic Partners and the entire Class A Partnership Interests of the Strategic Partners (the “Strategic Interests”). The terms, conditions and procedures of the Strategic North Beach Put Right, including with
respect to closing, payment of the Put Price, the ability of KKR LP and KSL Newco to acquire or assign the Strategic Interests and the ability of the Company to sell the Property in lieu of honoring the Strategic ROFO/Sale Price, shall be the same
or substantially similar to those set forth in Section 8.8 of the Hotel Partnership Agreement with respect to the Strategic Partners ROFO/Sale Right; provided that the price of the Strategic Interests to be sold in the Strategic North
Beach Put Right shall be the “Strategic Put Price” as set forth herein, notwithstanding the method for calculating the Strategic ROFO/Sale Price in the Hotel Partnership Agreement. The “Strategic Put Price” equals the
amount that the Strategic Partners would have received had the Property been sold for cash for an amount equal to the Fair Market Value of the Property and the resulting proceeds distributed in accordance with 5.1(a) hereof. 
  
 Section 8.9 Additional Put Right Procedures. Notwithstanding the
provisions of Sections 8.6 and 8.7, the following provisions shall apply to a KSL Put Right or a KKR Put Right: 
  
 (a) If either KSL Newco or the KKR Partners exercise their respective North Beach Put Rights, the other Class A Partner shall have fifteen
(15) days from the date of receipt of notice of such exercise to exercise its North Beach Put Right, failing which it shall not be entitled to exercise its North Beach Put Right until the one year anniversary of the date such notice was
received (the “Put Black-Out Period”). The General Partner, on behalf of the Company, shall decide within thirty (30) days of the fifteen (15) day period described in this Section 8.9 whether to honor the North Beach
Put Rights or to sell the Property. 
  
 (b) If the exercise of the
KSL North Beach Put Right and the KKR North Beach Put Right would, in the commercially reasonable judgment of the Strategic 

  

 42 

 
Partners, cause Strategic REIT to be required to consolidate the ownership of its investment in the Company on Strategic REIT’s books for GAAP
accounting purposes, the Strategic Partners shall have one hundred eighty (180) days, rather than ninety (90) days, to consummate the North Beach Put Right if they have not otherwise elected to sell the Property in lieu of honoring the
North Beach Put Right. In such event, the KSL Put Price or the KKR Put Price, as applicable, shall be determined as of the date of delivery of the KSL LP Put Notice or the KKR Partners Put Notice (in each case as defined in and delivered pursuant to
the Hotel Partnership Agreement), as applicable. 
  
 Section 8.10
Closing Mechanics. All closings of any purchase and sale of Partnership Interests and/or DC Corp Shares, as applicable, by and among the Company and/or the Partners under this Article 8 will be held at the Company’s principal
office. On or prior to any closing under this Article 8, the selling party and/or its Affiliates shall receive a release from any existing guarantees given by the selling party with respect to the Transferred Partnership Interest. At the
closing, the Company and/or the purchasing party, as applicable, shall agree to indemnify and hold harmless the selling party with respect to any future liabilities it may incur as a result of its having been a Partner (other than any liabilities
arising out of the selling party’s gross negligence or willful misconduct) and the selling party agrees to make customary representations and warranties as to the ownership of its Partnership Interest and/or DC Corp Shares, as applicable, and
the due authorization, execution and delivery of any documents executed in connection with such sale. 
  
 Section 8.11 Compliance with Loan Documents. (a) Notwithstanding anything to the contrary herein, any North Beach Put Right or any other Transfer contemplated by this ARTICLE 8 shall be subject to
and conditioned upon compliance with the terms of the GMAC Loan and may be prohibited by the applicable Lender under the GMAC Loan. Such compliance may include the substitution of a Loan Guaranty made by an Affiliate of a Partner in favor of the
Lender. 
  
 ARTICLE 9. 
 ADMISSION OF ASSIGNEES 
  
 Section 9.1 Rights of Assignees. The Assignee of a Partnership Interest has no management or voting rights and, unless the Assignee is a Permitted
Transferee, no right to become a Partner. The Assignee’s only rights are the Economic Interest allocable to the Transferred Partnership Interest. 
  
 Section 9.2 Admission of Assignee as a Partner. An Assignee shall be admitted as a Partner with all rights of the Partner who initially Transferred
the Partnership Interest to the Assignee, but only if (i) the Partner who initially Transferred the Partnership Interest so provides in the instrument of Transfer, (ii) the Assignee agrees in writing to be bound by the provisions of this
Agreement, and (iii) subject to Section 9.3, the Class A Partners consent in writing to the admission of the Assignee as a Partner. Each Class A Partner 

  

 43 

 
shall have the right to give or withhold its consent to the admission of the Assignee as a Partner in such Class A Partner’s sole and absolute
discretion. An Assignee who is admitted as a Partner shall have all the rights and powers and be subject to all the restrictions and liabilities of the Partner who originally Transferred the Partnership Interest. The admission of the Assignee as a
Partner, without more, shall not release the Partner who originally Transferred the Partnership Interest from any liability to the Company that exists before such admission. 
  
 Section 9.3 Admission of Permitted Transferee as Partner. A Permitted Transferee to whom a Partnership Interest is
Transferred or a Person to whom a Partnership Interest has been transferred pursuant to any Parallel Transfer made pursuant to the terms of Article 8 and/or arising from any Transfer under the Hotel Partnership Agreement shall be admitted as
a Partner, without the necessity of obtaining the written consent of the other Partners, only if the conditions described in clauses (i) and (ii) of Section 9.2 are satisfied. 
  
 ARTICLE 10. 
 CONTRIBUTION EVENT; DEFAULT AND REMEDIES 
  
 Section 10.1 Events of Default, Contribution Event. Each of the events in (a) below shall be deemed to be and is referred to in this Agreement as a “Contribution Event” and
each of the events in (b) through (d) shall be deemed to be and is referred to in this Agreement as an “Event of Default”: 
  
 (a) the failure by a Class A Partner to pay the Class A Partner’s share of an Additional Capital Contribution to the Company on or before
the Due Date; 
  
 (b) a default by a Partner in performing or
observing any of the provisions of this Agreement (other than those referred to in subsection (a) above or subsection (c) or (d) below, which events will not be remediable) which is not remedied by the Partner (i) within fifteen
(15) days after the Nondefaulting Partner gives a written notice to the Defaulting Partner, specifying the default, or (ii) in the case of a default which cannot in good faith be cured within fifteen (15) days, within such additional
period, if any, as may be reasonably required by the Defaulting Partner to cure the default in good faith provided that the Defaulting Partner commences the curing of the same within the fifteen (15)-day period (it being intended that, in connection
with any default which is not susceptible of being cured in good faith within fifteen (15) days, the time within which the Defaulting Partner is required to cure the default shall be extended for such additional period as may be reasonably
necessary to cure the default in good faith but in no event shall such additional period exceed ninety (90) days); 
  
 (c) Transfer by a Partner of the Partner’s Partnership Interest in a manner not permitted by Article 8; 
  

 44 

 (d) the taking of any of the following actions by a Partner (with respect to such Partner) pursuant to or
within the meaning of Title 11, Federal Bankruptcy Code (11 U.S.C.A.) or any similar federal or state law for the relief of debtors (“Bankruptcy Law”): 
  
 (i) commencing a voluntary case; 
  
 (ii) consenting to the entry of an order for relief against the Partner in an involuntary case; 
  
 (iii) consenting to the appointment of a receiver, trustee, assignee,
liquidator or similar official under any Bankruptcy Law (a “Custodian”) of the Partner or for all or substantially all of the Partner’s property; 
  
 (iv) making a general assignment for the benefit of the Partner’s creditors; or 
  
 (v) the entry by a court of competent jurisdiction of an order or decree
under any Bankruptcy Law that: 
  
 (A) is for
relief against a Partner in an involuntary case, which order or decree remains unstayed and in effect for ninety (90) days, 
  
 (B) appoints a Custodian of the Partner for all or substantially all of its property, which order or decree remains unstayed and in effect
for ninety (90) days, 
  
 (C) orders the
liquidation of the Partner, which order or decree remains unstayed and in effect for ninety (90) days, 
  
 If a Contribution Event or an Event of Default occurs, the Non-Contributing Partner or the Nondefaulting Partner, as the case may be, shall have the
applicable remedies set forth in Sections 10.2 or 10.4. 
  
 Section
10.2 Percentage Interest Adjustment upon the Occurrence of a Contribution Event. If a Contribution Event described in Section 10.1(a) occurs, any Contributing Partner shall have the option, but without imposing on it the
obligation, to contribute that portion of the Additional Capital Contribution which the Non-Contributing Partner was obligated, but failed, to contribute (and if more than one Contributing Partner exercises such option, or any other right or option
under this Article 10, such option or right shall be exercised by each Contributing Partner, pro rata in accordance with their respective Percentage Interests, or in such other manner as they may determine, and the term “Contributing
Partner” as used in this Article 10 shall mean the aggregate of such Contributing Partners who exercise such right or option). The option shall be exercised by giving written notice to the Non-Contributing Partner within sixty
(60) days after the occurrence of the Contribution Event. If any portion of the Non-Contributing Partner’s share of such Additional Capital Contribution is not so contributed by the Contributing Partner, the Contributing Partner shall have
the authority to admit 

  

 45 

 
one or more new Persons as limited partners (subject to the provisions of Section 8.2) who shall purchase a Partnership Interest determined in
accordance with clauses (i) and (ii) below by making a Capital Contribution to the Company in immediately available funds. If the Contributing Partner(s) and/or the new Partner contribute the Non-Contributing Partner’s share of such
Capital Contribution (as well as the Contributing Partner’s own share), the Percentage Interest of the Non-Contributing Partner shall be decreased such that, immediately after such decrease, the Percentage Interest of the Non-Contributing
Partner shall be a percentage equal to the Percentage Interest immediately prior to such decrease, less a percentage expressed as a fraction, the numerator of which is one hundred fifty percent (150%) multiplied by the amount of the Additional
Capital Contribution that such Non-Contributing Partner failed to contribute (but not below zero), and the denominator of which is the aggregate amount of the Nominal Capital Contributions made by all of the Class A Partners prior to or as of
such default, and concomitantly, the Percentage Interest of each of the Contributing Partners who contribute all or a portion of the Non-Contributing Partner’s share, or of a new Partner who contributes all or a portion of such share shall be
increased or established, as the case may be, by the same amount (if there is more than one Contributing Partner or there is a Contributing Partner and a new Partner, the Percentage Interests of such Partners shall be increased or established, as
the case may be, by a pro rata amount, in accordance with each party’s contribution, of the decrease calculated in accordance with this Section 10.2). 
  
 Section 10.3 Obligations of Defaulting or Non-Contributing Partner Continue. A Class A
Partner who is a Non-Contributing or Defaulting Partner shall continue to be obligated to make Additional Capital Contributions pursuant to Section 4.3. 
  
 Section 10.4 Event of Default; Violation of Section 6.4. (a) If there shall at any time be an
Event of Default, then any Nondefaulting Partner shall have the rights and remedies available at law or in equity. 
  
 (b) If there shall at any time be a violation or an attempted violation of any of the provisions of Section 6.4 hereof and any rights thereby
granted, then any Nondefaulting Partner shall, in addition to all rights and remedies at law or in equity, be entitled to a decree or order restraining such violation; it being hereby acknowledged and agreed that damages at law will not be an
adequate remedy for a breach or violation of the provisions set forth in Section 6.4. 
  
 ARTICLE 11. 
  
 [INTENTIONALLY OMITTED] 
  

 46 

 ARTICLE 12. 
  
 [INTENTIONALLY OMITTED] 
  
 ARTICLE 13. 
 CONFIDENTIALITY

  
 Section 13.1 In General. The
terms of this Agreement, and all other business, financial or other information relating directly to the conduct of the business and affairs of the Company or the relative or absolute rights or interests of any of the Partners (collectively, the
“Confidential Information”) that has not been publicly disclosed pursuant to authorization by the Partners is confidential and proprietary information of the Company and the Partners, the disclosure of which would cause irreparable
harm to the Company and the non-disclosing Partner(s). Accordingly, each Partner represents that it has not and agrees that it will not and will direct its members, shareholders, partners, directors, officers, agents, advisors and Affiliates not to,
disclose to any Person any Confidential Information or confirm any statement made by third Persons regarding Confidential Information until the Company has publicly disclosed the Confidential Information pursuant to consent by the non-disclosing
Partner and has notified each Partner that it has done so; provided, however, that any Partner (or its Affiliates) may disclose such Confidential Information (i) if required by applicable law or rule of any stock exchange, provided that before
making any disclosure of Confidential Information required by law or rule of any stock exchange, such disclosing Partner will notify the other Partners and provide them with a copy of the proposed disclosure containing such Confidential Information
and an opportunity to comment thereon before the disclosure is made, (ii) as reasonably necessary in connection with any transaction (including a Corporate Transaction Transfer) authorized pursuant to the terms of this Agreement, provided,
however, that, prior to disclosing Confidential Information to any Persons pursuant to this clause (ii), the disclosing Partner shall cause such Persons to enter into appropriate confidentiality agreements committing them to keep such Confidential
Information confidential and (iii) in the case of KKR LP, KSL Newco or their Affiliates, to their equity investors. 
  
 Section 13.2 Protection. Subject to the provisions of Section 13.1, each Partner agrees not to disclose any
Confidential Information to any Person (other than a Person agreeing to maintain all Confidential Information in strict confidence or a judge, magistrate or referee in any action, suit or proceeding relating to or arising out of this Agreement or
otherwise) or use any Confidential Information other than in connection with its performance under this Agreement, and to keep confidential all documents (including, without limitation, responses to discovery requests) containing any Confidential
Information. Each Partner hereby consents in advance to any motion for any protective order brought by any other Partner represented as being intended by the movant to 

  

 47 

 
implement the purposes of this Article 13 provided that, if a Partner receives a request to disclose any Confidential Information under the terms of a
valid and effective order issued by a court or governmental agency and the order was not sought by or on behalf of or consented to by such Partner, then such Partner may disclose the Confidential Information to the extent required if the Partner as
promptly as practicable notifies each of the other Partners of the existence, terms and circumstances of the order, consults in good faith with each of the other Partners on the advisability of taking legally available steps to resist or to narrow
the order, and if disclosure of the Confidential Information is required, exercises its best efforts to obtain a protective order or other reliable assurance that confidential treatment will be accorded to the portion of the disclosed Confidential
Information that any other Partner designates. The cost (including, without limitation, attorneys’ fees and expenses) of obtaining a protective order covering Confidential Information designated by such other Partner will be borne by the
Company. 
  
 Section 13.3 Statements Relating to Tax Treatment
or Tax Structure. Notwithstanding anything to the contrary in the foregoing provisions of this Section 13 or elsewhere in this Agreement, any Partner (and any employee, representative or other agent of any Partner) may disclose
to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to any Partner
relating to such tax treatment and tax structure; provided, however, that any such information and materials shall be kept confidential to the extent necessary to comply with any applicable securities laws. For purposes of the preceding sentence,
the tax treatment and tax structure of the transactions contemplated by this Agreement shall not be deemed to include the identity of the Partners, the location of the Property or the amount of any Partner’s Capital Contributions. The foregoing
authorization of disclosure is retroactively effective immediately upon commencement of the first discussions among the Partners regarding the transactions contemplated hereby, and the Partners aver and affirm that this tax disclosure authorization
has been given on a date which is no later than 30 days from the first day that any Partner (or any employee, representative, or other agent of a Partner) first made or provided a statement as to the potential federal income tax consequences that
may result from the transactions contemplated hereby. 
  
 Section
13.4 Survival. The covenants contained in this Article 13 will survive the Transfer of the Partnership Interests of any Partner, the termination of this Agreement and/or the dissolution of the Company. 
  
 ARTICLE 14. 
 DISSOLUTION OF COMPANY 
  
 Section 14.1 Events Causing Dissolution. The Company shall be dissolved and its affairs wound up upon the consent in writing by the Partners, acting unanimously, that the Company shall be dissolved. 

 

 48 

 The Company shall not be dissolved by the resignation, withdrawal, bankruptcy or dissolution of a Partner
and the Company’s business shall continue pursuant to Section 17-801 of the Act. In the event of the withdrawal of the General Partner, within 90 days after such withdrawal, the Class A Limited Partners shall appoint, effective as of
the date of the withdrawal, a replacement general partner or general partners for the Company by the affirmative vote of the Class A Limited Partners owning at least sixty percent (60%) of the total Percentage Interests of all Class A
Limited Partners. 
  
 Section 14.2 Winding
Up. If the Company is dissolved, the General Partner shall proceed with dispatch and without any unnecessary delay to sell or otherwise liquidate all property of the Company. Any act or event (including the passage of time)
causing dissolution of the Company shall in no way affect the validity of, or shorten the term of, any lease, contract or other obligation entered into by or on behalf of the Company. The full rights, powers and authorities of the General Partner
shall continue so long as appropriate and necessary to complete the process of winding up the business and affairs of the Company. 
  
 Section 14.3 Application of Assets in Winding Up. Except as otherwise provided in Section 14.1, upon the occurrence
of an event described in Section 14.1, the Company shall continue solely for the purposes of winding up its affairs in an orderly manner, liquidating its assets, and satisfying the claims of its creditors and Partners. No Partner shall
take any action that is inconsistent with or not necessary to or appropriate for the winding up of the Company’s business and affairs. The General Partner (or in the event there is no general partner, any Partner elected by the Class A
Partners owning at least sixty percent (60%) of the Percentage Interests of the Class A Partners) shall be responsible for overseeing the winding up and dissolution of the Company and shall take full account of the Company’s
liabilities and assets and the assets shall be liquidated as promptly as is consistent with obtaining the fair value thereof, and the proceeds therefrom, to the extent sufficient therefore, shall be applied and distributed in the following order:

  
 (a) First, to pay any debts or liabilities of the Company, and
then to pay any costs and expenses of winding up and terminating the Company; 
  
 (b) Second, to establish any reserves which the General Partner reasonably determines to be necessary to provide for any contingent or unforeseen liabilities or obligations of the Company; but at the expiration of
such period of time as the General Partner determines to be advisable, the balance of the reserves remaining after the payment of such contingencies shall be distributed in the manner hereinafter provided in this Section 14.3;

  
 (c) Thereafter, in accordance with Section 5.1(a)
above. 
  

 49 

 Section 14.4 Negative Capital Accounts. In the event the Company is
“liquidated” within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g), (x) distributions shall be made pursuant to this Article 14 to the General Partner and Limited Partners who have positive Capital Accounts
in compliance with Regulations Section 1.704-1(b)(2)(ii)(b)(2), and (y) if the General Partner’s Capital Account has a deficit balance (after giving effect to all contributions, distributions, and allocations for all
taxable years, including the taxable year during which such liquidation occurs), such General Partner shall contribute to the capital of the Company the amount necessary to restore such deficit balance to zero in compliance with Regulations
Section 1.704-1(b)(2)(ii)(b)(3). If any Limited Partner or its Assignee has a deficit balance in its Capital Account (after giving effect to all contributions, distributions and allocations for all taxable years, including the
taxable year during which such liquidation occurs), such Person shall have no obligation to make any contribution to the capital of the Company with respect to such deficit, and such deficit shall not be considered a debt owed to the Company or to
any other Person for any purpose whatsoever. The Company has the right to retain any Distributions due a Partner to offset such Partner’s obligations hereunder. 
  
 Section 14.5 Termination. The Company shall terminate, except for the purpose of suits, other
proceedings, and appropriate action as provided in the Act, when all of its property shall have been disposed of and the net proceeds and liquid assets, after satisfaction of liabilities to Company creditors, shall have been distributed among the
Partners. The General Partner shall have authority to distribute any Company property discovered after dissolution, convey real estate, and take such other action as may be necessary on behalf of and in the name of the Company. 
  
 ARTICLE 15. 
 MISCELLANEOUS PROVISIONS 
  
 Section 15.1 Subsidiary Entities. Intentionally Omitted. 
  
 Section 15.2 Amendment and Modification. This Agreement may not be amended or modified except by an instrument in writing signed by all of the parties hereto; provided,
however, that an amendment (i) necessary in connection with the exercise of any North Beach Put Rights or (ii) that grants rights to a new Partner pursuant to Section 4.3(c) or Section 10.2 shall not require
an instrument in writing signed by any Partner other than the General Partner. 
  
 Section 15.3 Parties in Interest. This Agreement shall be binding upon and, except as provided below, inure solely to the benefit of each party hereto and their successors, assigns and transferees,
and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement. 
  

 50 

 Section 15.4 Notices. All notices and other communications hereunder shall be
in writing and shall be deemed given if delivered personally, telecopied, or mailed by registered or certified mail (return receipt requested), or sent by Federal Express or other recognized overnight courier, to the parties at the following
addresses (or at such other address for a party as shall be specified by like notice): 
  
 (a) If to the General Partner, SHC TRS or DC Corp, to: 
  
 Strategic Hotel Capital, Inc. 
 77 West Wacker 
 Suite 4600 
 Chicago, Illinois 60601

 Facsimile: 312-658-5794 

			
	 Attention:
	 	Laurence Geller
	 	 	Paula Maggio

  
 with a copy to:

  
 Perkins Coie LLP 
 131 South Dearborn Street 
 Suite 1700

 Chicago, Illinois 60603-5559 
 Facsimile: 312-324-9400 

			
	 Attention:
	 	Phillip Gordon

  
 (b) If to KSL
Newco, to: 
  
 c/o KSL Resorts 
 50-905 Avenida Bermudas 
 La Quinta,
California 92253 
 Facsimile: 760-564-8003 

			
	 Attention:
	 	Chief Financial Officer
	 	 	General Counsel

  
 with a copy to:

  
 Squire, Sanders & Dempsey 
 Two Renaissance Square 
 40 North Central
Avenue, Suite 2700 
 Phoenix, Arizona 85004 
 Facsimile: 602-253-8129 

			
	 Attention:
	 	Richard F. Ross

  

 51 

 (c) If to KKR LP, Recreation or DC Corp, to: 
  
 Kohlberg Kravis Roberts & Co. 
 9 West 57th Street 
 Suite 4200 
 New York, New York 10019 
 Facsimile:
212-750-0003 

			
	 Attention:
	 	John Saer
	 	 	Tagar Olson

  
 with a copy to:

  
 Simpson Thacher & Bartlett LLP 
 425 Lexington Avenue 
 New York, New York
10017 
 Facsimile: 212-455-2502 

			
	 Attention:
	 	Gary Horowitz

  
 Any of the above
addresses may be changed at any time by notice given as provided above; provided, however, that any such notice of change of address shall be effective only upon receipt. All notices, requests or instructions given in accordance herewith shall be
deemed received on the date of delivery, if hand delivered, on the date of receipt, if telecopied, three Business Days after the date of mailing, if mailed by registered or certified mail, return receipt requested, and one Business Day after the
date of sending, if sent by Federal Express or other recognized overnight courier. 
  
 Section 15.5 Counterparts. This Agreement may be executed and delivered (including by facsimile transmission) in one or more counterparts, all of which shall be considered one and the same agreement
and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart. 
  
 Section 15.6 Entire Agreement. This Agreement
constitutes the entire agreement of the parties hereto and supersedes all prior agreements, letters of intent and understandings, both written and oral, among the parties with respect to the subject matter hereof. 
  
 Section 15.7 Governing Law; Choice of Forum. This
Agreement shall be construed in accordance with and governed by the internal laws of the State of Delaware (without giving effect to such State’s conflicts of laws principles). Each of the parties hereto hereby irrevocably consents, to the
maximum extent permitted by law, that any action or proceeding relating to this Agreement or the transactions contemplated hereby shall be brought, at the option of the party instituting the action or proceeding, in any court of general jurisdiction
in New Castle County, Delaware, in the United States District Court 

  

 52 

 
for the State of Delaware or in any state or federal court sitting in the area currently comprising the District of Delaware. Each of the parties hereto
waives any objection that it may have to the conduct of any action or proceeding in any such court based on improper venue or forum non conveniens, waives personal service of any and all process upon it, and consents that all service of process may
be made by mail or courier service directed to it at the address set forth herein and that service so made shall be deemed to be completed upon the earlier of actual receipt or ten days after the same shall have been posted. Nothing contained in
this Section 15.7 shall affect the right of any party hereto to serve legal process in any other manner permitted by law. 
  
 Section 15.8 Public Announcements. Each Partner shall consult with each other before issuing any press release or otherwise
making any public statements with respect to this Agreement or the transactions contemplated hereby, except for statements required by law or by any listing agreements with any national securities exchange or the National Association of Securities
Dealers, Inc., or made in disclosures filed pursuant to the Securities Act of 1933, as amended and the regulations thereunder or the Securities Exchange Act of 1934, as amended and the rules thereunder. 
  
 Section 15.9 Headings. The headings in this
Agreement are for convenience of reference only and are not intended to be and shall not describe, interpret, define, or limit the scope, intent or extent of any of the provisions of this Agreement. 
  
 Section 15.10 Binding Effect. This Agreement shall
be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. 
  
 Section 15.11 Jury Trial Waiver. EACH PARTNER HEREBY WAIVES SUCH PARTNER’S RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF
THIS AGREEMENT AND THE BUSINESS RELATIONSHIP THAT IS BEING ESTABLISHED. THIS WAIVER IS KNOWINGLY, INTENTIONALLY AND VOLUNTARILY MADE BY EACH PARTNER. EACH PARTNER ACKNOWLEDGES THAT NO PERSON HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER
OF TRIAL BY JURY OR HAS TAKEN ANY ACTIONS WHICH IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. EACH PARTNER ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH PARTNER HAS ALREADY RELIED ON THIS WAIVER IN
ENTERING INTO THIS AGREEMENT AND EACH PARTNER WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTNER FURTHER ACKNOWLEDGES THAT EACH HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL (OR HAS HAD THE OPPORTUNITY TO BE
REPRESENTED) IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER. 
  

 53 

 Section 15.12 Attorneys’ Fees. In the event that a party hereto is
required t incurred by the Company o take any action or retains legal counsel to enforce any of the provisions of this Agreement or seek damages for breach of this Agreement, the prevailing party shall be paid, in addition to all other sums that may
be required to be paid, a commercially reasonable sum for the prevailing party’s attorneys’ fees and paralegal and related fees. 
  
 Section 15.13 Incorporation of Recitals. The recitals set forth above are incorporated and made a part of this Agreement as if
fully set forth herein. 
  
 Section 15.14 LLC
Conversion. Subject to compliance with the Loan Documents, the General Partner shall have the right to convert the form of organization of the Company from a limited partnership to a limited liability company at any time so
long as the economic interests, and the other rights under this Agreement of the Class A Limited Partners and the Class B Limited Partners are unaffected by the conversion. The Class A Limited Partners and the Class B Limited Partners
hereby agree to such conversion. The costs in connection with such conversion shall be borne by the Company. 
  
 Section 15.15 DC Corp REIT Elections. The Partners hereby acknowledge that DC Corp may elect to be treated as a (i) real estate investment trust (“REIT”) under
Code Section 856, or (ii) taxable REIT subsidiary under Code Section 856(l), for any taxable year and succeeding taxable years. The Partners and all shareholders of DC Corp agree to cooperate with actions reasonably required to
effectuate and qualify DC Corp as a REIT or taxable REIT subsidiary so long as (i) the economic interests, and the other rights under this Agreement of the Class A Limited Partners and the Class B Limited Partners are unaffected by the
election and (ii) the Company shall not bear the costs of the election and such costs shall be borne by the DC Corp shareholders who benefit from such election. 
  
 Section 15.16 Shareholders of DC Corp. Recreation and SHC del Coronado, L.L.C., as shareholders in
DC Corp, hereby acknowledge the provisions of this Agreement governing the relationship among those with economic interests in the Company and agree to abide by those principles in the governance of DC Corp. For example, transfers of DC Corp Shares
shall only be permitted on the same terms as the Transfer of Partnership Interests pursuant to the provisions of Article 8 of this Agreement. The foregoing shall be reflected in a shareholders’ agreement dated as of the date hereof
between Recreation and SHC del Coronado, L.L.C. 
  
 Section 15.17
Protective Actions. Notwithstanding any provision of this Agreement to the contrary, if any otherwise permitted action which may, or is required to, be taken, by the Company or a Partner under this Agreement would, in the
commercially reasonable judgment of the Strategic Partners, (i) cause Strategic REIT to be required to consolidate the ownership of its investment in the Company on Strategic 

  

 54 

 
REIT’s books for GAAP accounting purposes, (ii) trigger a property tax reassessment of the Property or (iii) jeopardize Strategic REIT’s
status as a real estate investment trust under the Code (a “Prohibited Result”), the Strategic Partners may cause the Company or the affected Partners to restructure or modify such action to the extent reasonably necessary to
prevent the Prohibited Result, provided such modification or restructuring does not affect the economic interests and other rights under this agreement of the Class A Limited Partners and the Class B Limited Partners, including, without
limitation, a triggering of a property tax reassessment. The costs in connection with such modification or restructuring shall not be borne by the Company but shall be borne solely by the General Partner or its Affiliates (other than the Company or
the Subsidiaries). 
  
 [REMAINDER OF PAGE LEFT BLANK
INTENTIONALLY; SIGNATURES APPEAR ON THE FOLLOWING PAGE.] 
  

 55 

 The undersigned parties have or caused to be signed this Amended and Restated Limited Liability Limited
Partnership Agreement of the Company as of the day and year first above written. 
  

			
	GENERAL PARTNER:
	
	 DTRS NORTH BEACH DEL
 CORONADO,
LLC,

	 a Delaware limited liability company

		
	By:	 	 /s/ J. C. Cyr

	 	 	 Name: J. C. Cyr
 Title:   Senior Vice President

	
	LIMITED PARTNERS:
	
	 DTRS NORTH BEACH DEL
 CORONADO,
LLC,

	 a Delaware limited liability company

		
	By:	 	 /s/ J. C. Cyr

	 	 	 Name: J. C. Cyr
 Title:   Senior Vice President

	
	HDC DC CORPORATION,
	 a Delaware corporation

		
	By:	 	 /s/ Nola S. Dyal

	 	 	 Name: Nola S. Dyal
 Title:   Vice President

	
	KSL DC NEWCO, LLC,
	 a Delaware limited liability company

		
	By:	 	 /s/ Steven S. Siegel

	 	 	 Name: Steven S. Siegel
 Title:   Vice President

  

 2 

			
	DCORO HOLDINGS, LLC,
	 a Delaware limited liability company

		
	By:	 	 /s/ Tagar Olson

	 	 	 Name: Tagar Olson
 Title:   Senior Vice President

	
	Approved and Agreed to with respect to
	Section 15.16:
	
	HDC RECREATION HOLDINGS I, LLC,
	 a Delaware limited liability company

		
	By:	 	 /s/ Nola S. Dyal

	 	 	 Name: Nola S. Dyal
 Title:   Vice President

	
	SHC DEL CORONADO, L.L.C.,
	 a Delaware limited liability company

		
	By:	 	 /s/ J. C. Cyr

	 	 	 Name: J. C. Cyr
 Title: Senior Vice President

  

 3 

 EXHIBIT A 
  

NORTH BEACH PROPERTY DESCRIPTION 
  
 REAL PROPERTY IN THE CITY OF CORONADO, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: 
  
 THAT PORTION OF PARCEL 1 OF PARCEL MAP NO. 13594, IN THE CITY OF CORONADO, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, FILED IN THE
OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON DECEMBER 14, 1984 AS FILE NO. 84-466433. TOGETHER WITH THAT PORTION OF BLOCK 2-A OF CORONADO BEACH SOUTH ISLAND, MAP NO. 376, IN THE CITY OF CORONADO, COUNTY OF SAN DIEGO, STATE OF
CALIFORNIA, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY NOVEMBER 12, 1886. AS SHOWN ON RECORD OF SURVEY NO. 5439, RECORDED APRIL 18, 1960 AS FILE NO. 79843, RECORD OF SURVEY NO. 6857, RECORDED MAY 9,
1967 AS FILE NO. 65237 AND RECORD OF SURVEY NO. 13724, RECORDED APRIL 17, 1992 AS FILE NO. 92-225189. MORE PARTICULARLY DESCRIBED AS FOLLOWS: 
  
 COMMENCING AT THE MOST NORTHWESTERLY CORNER OF SAID PARCEL 1 OF PARCEL MAP 13594, SAID POINT BEING ON THE SOUTHERLY RIGHT OF WAY OF R.H.
DANA PLACE, A VARIABLE WIDTH PUBLIC STREET, SAID POINT BEING ON THE ARC OF A NON-TANGENT 1025.37 FOOT RADIUS CURVE, CONCAVE NORTHERLY, A RADIAL LINE TO WHICH BEARS SOUTH 09°34’12” WEST, SAID POINT ALSO BEING THE TRUE POINT OF
BEGINNING; THENCE EASTERLY ALONG THE ARC OF SAID 1025.37 FOOT RADIUS CURVE, AND SAID SOUTHERLY RIGHT OF WAY, THROUGH A CENTRAL ANGLE OF 0°33’04”, 9.86 FEET TO A POINT OF REVERSE CURVATURE OF A NON-TANGENT 548.34 FOOT RADIUS CURVE,
CONCAVE NORTHERLY, A RADIAL LINE TO WHICH BEARS SOUTH 09°11’19” WEST; THENCE EASTERLY ALONG THE ARC OF SAID 548.34 FOOT RADIUS CURVE, AND CONTINUING ALONG SAID SOUTHERLY RIGHT OF WAY, THROUGH A CENTRAL ANGLE OF 4°45’02”,
45.46 FEET TO A POINT OF COMPOUND CURVATURE OF A NON-TANGENT 1025.37 FOOT RADIUS CURVE, CONCAVE NORTHERLY, A RADIAL LINE TO WHICH BEARS SOUTH 10°43’42” WEST; THENCE EASTERLY ALONG THE ARC OF SAID 1025.37 FOOT RADIUS CURVE, AND
CONTINUING ALONG SAID SOUTHERLY RIGHT OF WAY, THROUGH A CENTRAL ANGLE OF 7°38’09” 136.65 FEET TO A POINT ON THE ARC OF A TANGENT 130.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY, A RADIAL LINE TO WHICH BEARS NORTH
86°38’16” WEST; THENCE LEAVING SAID SOUTHERLY RIGHT OF WAY, SOUTHEASTERLY ALONG THE ARC OF SAID 130.00 FOOT RADIUS CURVE, THROUGH A CENTRAL ANGLE OF 57°10’51” 129.74 FEET; THENCE TANGENT FROM SAID CURVE, SOUTH
53°49’07” EAST 109.40 FEET; THENCE NORTH 36°10’53” EAST 7.67 FEET; THENCE SOUTH 53°49’07” EAST 94.08 FEET; THENCE SOUTH 72°27’35” EAST 14.49 FEET TO THE BEGINNING OF A NON-TANGENT 49.00 FOOT
RADIUS CURVE, CONCAVE 

 
NORTHEASTERLY, A RADIAL LINE TO WHICH BEARS NORTH 72°27’37” WEST; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID 49.00 FOOT RADIUS CURVE, THROUGH A
CENTRAL ANGLE OF 100°28’40”, 85.93 FEET; THENCE SOUTH 01°50’14” WEST 31.87 FEET; THENCE SOUTH 36°10’53” WEST 56.15 FEET; THENCE NORTH 53°49’07” WEST 26.55 FEET; THENCE SOUTH
36°10’53” WEST 26.08 FEET; THENCE NORTH 53°49’07” WEST 5.92 FEET; THENCE SOUTH 36°10’53” WEST 43.67 FEET; THENCE SOUTH 53°49’07” EAST 5.92 FEET; THENCE SOUTH 36°10’53” WEST 35.61
FEET; THENCE SOUTH 53°49’07” EAST 21.92 FEET; THENCE SOUTH 36°10’53” WEST 30.03 FEET; THENCE SOUTH 53°49’07” EAST 4.96 FEET; THENCE SOUTH 36°10’53” WEST 76.43 FEET; THENCE NORTH
58°48’28” WEST 21.66 FEET TO THE BEGINNING OF A TANGENT 186.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY, A RADIAL LINE TO WHICH BEARS SOUTH 31°11’32” WEST; THENCE NORTHWESTERLY ALONG THE ARC OF SAID 186.00 FOOT RADIUS
CURVE, THROUGH A CENTRAL ANGLE OF 49°17’30”, 160.02 FEET TO A POINT OF REVERSE CURVATURE OF A TANGENT 233.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY, A RADIAL LINE TO WHICH BEARS NORTH 80°29’02” EAST; THENCE
NORTHWESTERLY ALONG THE ARC OF SAID 233.00 FOOT RADIUS CURVE, THROUGH A CENTRAL ANGLE OF 15°36’05”, 63.44 FEET TO THE SOUTHEASTERLY LINE OF SAID RECORD OF SURVEY Nos. 5439, 6857 AND 13724; THENCE CONTINUING ALONG THE ARC OF SAID
233.00 FOOT RADIUS CURVE, THROUGH A CENTRAL ANGLE OF 3°52’46”, 15.78 FEET; THENCE TANGENT FROM SAID CURVE, NORTH 28°59’49” WEST 38.98 FEET TO THE BEGINNING OF A TANGENT 287.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY, A
RADIAL LINE TO WHICH BEARS NORTH 61°00’11” EAST; THENCE NORTHWESTERLY ALONG THE ARC OF SAID 287.00 FOOT RADIUS CURVE, THROUGH A CENTRAL ANGLE OF 23°39’42”, 118.52 FEET TO A POINT OF REVERSE CURVATURE OF A TANGENT 500.00
FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY, A RADIAL LINE TO WHICH BEARS SOUTH 37°20’29” WEST; THENCE NORTHWESTERLY ALONG THE ARC OF SAID 500.00 FOOT RADIUS CURVE, THROUGH A CENTRAL ANGLE OF 11°11’28”, 97.66 FEET TO A POINT
OF COMPOUND CURVATURE OF A TANGENT 145.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY, A RADIAL LINE TO WHICH BEARS SOUTH 48°31’57” WEST; THENCE NORTHWESTERLY ALONG THE ARC OF SAID 145.00 FOOT RADIUS CURVE, THROUGH A CENTRAL ANGLE OF
53°05’04”, 134.34 FEET TO THE NORTHWESTERLY LINE OF SAID RECORD OF SURVEY Nos. 5439, 6857 AND 13724; THENCE ALONG SAID NORTHWESTERLY LINE, NORTH 33°19’17” EAST (RECORD, NORTH 32°27’20” EAST ROS 5439,
NORTH 32°50’ WEST ROS 6857 AND 13724) 19.28 FEET TO THE NORTHWEST CORNER OF SAID RECORDS OF SURVEY, SAID CORNER ALSO BEING A NORTHWEST CORNER OF SAID PARCEL 1; THENCE ALONG A NORTHWESTERLY LINE OF SAID PARCEL 1, NORTH
33°19’17” EAST (RECORD NORTH 32°50’00” EAST) 25.25 FEET TO THE TRUE POINT OF BEGINNING. 
  
 THE ABOVE PROPERTY IS FURTHER SHOWN AND DESCRIBED AS “PARCEL C” IN THAT CERTAIN GRANT DEED-LOT LINE ADJUSTMENT EXECUTED BY CNL HOTEL DEL
PARTNERS, LP, A DELAWARE LIMITED PARTNERSHIP, RECORDED ON DECEMBER 6, 2005, AS DOCUMENT NO. 2005-1048453 OF OFFICIAL RECORDS. 
  

 2 

 EXHIBIT B 
  

“BOOK-UP” TO PARTNERS’ CAPITAL ACCOUNTS 
  

To be determined by the Partners subsequent to the Effective Date. 

 EXHIBIT C 
  

ALLOCATION EXAMPLES 
  
 To be determined by the Partners subsequent to the Effective Date. 

 EXHIBIT D 
  

NOMINAL CAPITAL CONTRIBUTIONS 
  

				
	 Class A Partners

	  	Nominal Capital
Contribution

	 DTRS North Beach del Coronado, LLC
	  	$	445.686
	 KSL DC Newco, LLC
	  	$	142.449
	 DCORO Holdings, LLC
	  	$	401.865
	 HdC DC Corporation
	  	$	10.000
	 	  	
	

	 Total
	  	$	1000.000
	 	  	
	

  

 3 

 EXHIBIT E 
  

DEVELOPMENT AGREEMENT 

 EXHIBIT F 
  

GUARANTY AGREEMENTPurchase and Sale Agreement

 Exhibit 10.48 
  
 PURCHASE AND SALE AGREEMENT 
  
 Between 
  
 LD GEORGETOWN PLAZA ASSOCIATES LLC, 
  
 SELLER, 
  
 And 
  
 SHC WASHINGTON, L.L.C., 
  
 PURCHASER, 
  
 For 
  
 FOUR SEASONS HOTEL, WASHINGTON D.C. 
 AND
RELATED PROPERTY 

 TABLE OF CONTENTS 
  

			
	 Section

	  	Page

	 1.      SALE AND PURCHASE, DESCRIPTION OF PROPERTY
	  	1
		
	 A.     The Property
	  	1
		
	 B.     Excluded from the Property
	  	4
		
	 2.      PURCHASE PRICE
	  	4
		
	 A.     Total Purchase Price
	  	4
		
	 B.     Payment of the Purchase Price
	  	5
		
	 C.     Additional Payments
	  	5
		
	 D.     Adjustments to Purchase Price
	  	5
		
	 E.     Allocation of Purchase Price
	  	5
		
	 3.      STATUS OF TITLE TO PROPERTY
	  	5
		
	 4.      TITLE REPORT, OBJECTIONS TO TITLE
	  	6
		
	 A.     Procedures, Seller’s Obligations
	  	6
		
	 B.     Acceptance or Termination
	  	7
		
	 5.      PURCHASER’S INVESTIGATIONS
	  	7
		
	 A.     Inspections
	  	7
		
	 B.     Due Diligence Materials
	  	8
		
	 C.     [Intentionally Omitted]
	  	8
		
	 D.     Operational Licenses
	  	8
		
	 E.     Violations
	  	8
		
	 6.      CLOSING, CLOSING DATE
	  	8
		
	 7.      REPRESENTATIONS AND WARRANTIES
	  	9
		
	 A.     Seller Representations and Warranties
	  	9
		
	 B.     Purchaser’s Representations and Warranties
	  	10
		
	 C.     Certain Limitations on Seller’s Representations and Warranties
	  	13
		
	 D.     Survival of Representations and Warranties
	  	14
		
	 8.      ENVIRONMENTAL
	  	14
		
	 9.      PRE-CLOSING COVENANTS AND OTHER MATTERS
	  	16
		
	 A.     Interim Operation
	  	16
		
	 B.     Art Work
	  	16
		
	 C.     Construction Work
	  	16
		
	 10.    ALCOHOLIC BEVERAGE CONTROL LICENSES
	  	18

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

			
	 	  	Page

	 A.     Transfer of ABC License
	  	18
		
	 B.     Stipulated License
	  	18
		
	 C.     Survival
	  	18
		
	 11.    CONDITIONS TO CLOSING
	  	19
		
	 A.     Purchaser’s Conditions
	  	19
		
	 B.     Seller’s Conditions
	  	19
		
	 12.    DOCUMENTS TO BE DELIVERED AT CLOSING
	  	19
		
	 A.     Seller’s Documents
	  	19
		
	 B.     Purchaser’s Documents
	  	21
		
	 13.    APPORTIONMENTS AND OTHER ECONOMIC ADJUSTMENTS
	  	21
		
	 A.     Items to be Apportioned
	  	21
		
	 B.     Deposits
	  	24
		
	 C.     Sales Taxes
	  	24
		
	 D.     Supplies and House Banks
	  	24
		
	 E.     Employee Wages and Other Compensation
	  	24
		
	 F.      Reconciliation and Final Payment; Intent of Section
	  	24
		
	 G.     Outstanding Principal of General Manager’s Mortgage Loan
	  	25
		
	 H.     Survival
	  	25
		
	 14.    ACCOUNTS RECEIVABLE AND PAYABLE
	  	25
		
	 A.     Accounts Receivable
	  	25
		
	 B.     Accounts Payable
	  	25
		
	 C.     Survival
	  	26
		
	 15.    TRANSACTION COSTS
	  	26
		
	 A.     Taxes and Recording Fees
	  	26
		
	 B.     Title and Survey
	  	26
		
	 C.     Third Party Fees
	  	26
		
	 D.     Survival
	  	26
		
	 16.    [INTENTIONALLY OMITTED]
	  	26
		
	 17.    SAFES AND BAGGAGE
	  	26
		
	 A.     Safes
	  	26
		
	 B.     Baggage
	  	26

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

			
	 	  	Page

	 C.     Survival
	  	26
		
	 18.    POST-CLOSING COVENANTS
	  	27
		
	 19.    BROKERAGE
	  	27
		
	 A.     Representation
	  	27
		
	 B.     Indemnity
	  	27
		
	 C.     Survival
	  	27
		
	 20.    TAX REDUCTION PROCEEDINGS
	  	27
		
	 21.    DAMAGE AND DESTRUCTION
	  	28
		
	 22.    CONDEMNATION
	  	29
		
	 23.    NOTICES
	  	29
		
	 24.    DEFAULT, REMEDIES
	  	30
		
	 A.     PURCHASER DEFAULT
	  	30
		
	 B.     SELLER DEFAULT
	  	31
		
	 25.    ENTIRE AGREEMENT
	  	31
		
	 26.    AMENDMENTS
	  	31
		
	 27.    WAIVER
	  	31
		
	 28.    PARTIAL INVALIDITY
	  	32
		
	 29.    SECTION HEADINGS
	  	32
		
	 30.    GOVERNING LAW
	  	32
		
	 31.    JURISDICTION
	  	32
		
	 32.    ATTORNEYS’ FEES, ACTIONS
	  	32
		
	 33.    FURTHER ASSURANCES
	  	32
		
	 34.    SUCCESSORS AND ASSIGNS
	  	33
		
	 35.    COUNTERPARTS
	  	33
		
	 36.    ASSIGNMENT
	  	33
		
	 37.    SURVIVAL
	  	33
		
	 38.    LIMITATION ON LIABILITY
	  	33
		
	 A.     No Personal Liability
	  	33
		
	 B.     Limits of Seller’s Liability
	  	34
		
	 39.    CONFIDENTIALITY
	  	34
		
	 A.     Press Releases
	  	34

  

 -iii- 

 TABLE OF CONTENTS 
 (continued) 
  

			
	 	  	Page

	 B.     Confidentiality
	  	34
		
	 C.     Survival
	  	35
		
	 40.    TIME PERIODS
	  	35
		
	 41.    SOIL CONDITION
	  	35

  

 -iv- 

 EXHIBITS 
  

			
	A	  	 Legal Description of the Land

	B	  	 Excluded FF&E

	C	  	 Equipment Leases

	D	  	 Service Contracts

	E	  	 Space Leases and Lease Deposits

	F	  	 Rooms Agreements

	G	  	 Trade Names and Marks

	H	  	 Escrow Agreement

	I	  	 Survey

	J	  	 Permitted Encumbrances

	K	  	 Manager Estoppel

	L	  	 Environmental Documents

	M	  	 Form of Deed

	N	  	 Form of Bill of Sale

	O	  	 Form of Assignment and Assumption of Service Contracts, Equipment Leases and Rooms Agreements

	P	  	 Form of Assignment and Assumption of Space Leases, Lease Deposits and Off-Site Rental Agreement

	Q	  	 Form of Omnibus Assignment of Receivables, Intangibles, Warranties and Licenses

	R	  	 Form of Assignment and Assumption of Reservations and Reservation Deposits

	S	  	 Form of Assignment and Assumption of Hotel Management Agreement

	T	  	 Form of License Agreement for Art Work

	U	  	 Due Diligence Materials

	V	  	 Form of Assignment of Deed of Trust Evidencing General Manager’s Mortgage Loan

	W	  	 Engineering Staff

	X	  	 Close-Out Work

	Y	  	 West Wing Exterior Work

	Z	  	 HVAC Work

  

 -v- 

 INDEX OF TERMS AND DEFINITIONS 
  

			
	 Term

	  	Page

	 ABC License
	  	18
	 Accounts Payable
	  	25
	 Accounts Receivable
	  	4
	 Administration
	  	18
	 Affiliate
	  	34
	 Agreement
	  	1
	 Anti-Money Laundering and Anti-Terrorism Laws
	  	11
	 Apportionment Date
	  	21
	 Appurtenances
	  	1
	 Art Work
	  	16
	 Art Work License
	  	16
	 Books
	  	3
	 Broker
	  	27
	 business days
	  	35
	 CERCLA
	  	15
	 Close-Out Work
	  	16
	 Closing
	  	9
	 Closing Date
	  	9
	 deemed to know
	  	14
	 Deposit
	  	5
	 Designated Person
	  	14
	 Due Diligence Materials
	  	8
	 Engineering Staff
	  	24
	 Environmental Documents
	  	14
	 Environmental Laws
	  	15
	 Equipment Leases
	  	2
	 Escrow Agent
	  	5
	 Escrow Agreement
	  	5
	 Executive Order
	  	11
	 FF&E
	  	2
	 General Manager’s Mortgage Loan
	  	4
	 Government List
	  	11
	 Hazardous Substances
	  	15
	 Hotel
	  	1
	 Hotel Employees
	  	24
	 Hotel Management Agreement
	  	2
	 House Banks
	  	4
	 HVAC Work
	  	17
	 Improvements
	  	1
	 Intangibles
	  	3
	 known to Seller
	  	14
	 Land
	  	1
	 Lease Deposits
	  	3
	 Licenses
	  	3
	 Louis Dreyfus
	  	10
	 Manager
	  	2
	 Manager Estoppel
	  	16
	 material part
	  	28, 29
	 notices
	  	29
	 Off-Site Rental Agreement
	  	3
	 Parking Agreement
	  	22
	 Permitted Encumbrances
	  	5
	 Plans and Specs
	  	3
	 Property
	  	4
	 Property Taxes
	  	22
	 Purchase Price
	  	4
	 Purchaser
	  	1
	 Purchaser’s Representatives
	  	14
	 RCRA
	  	15
	 Real Estate
	  	1
	 Receivables
	  	4
	 Reservation Deposits
	  	3
	 Reservations
	  	3
	 Retained Accounts Receivable
	  	25
	 Rooms Agreements
	  	3
	 Seller
	  	1
	 Seller’s Post-Closing Obligations
	  	34
	 Service Contracts
	  	2
	 Space Leases
	  	3
	 Stipulated License
	  	18
	 Supplies
	  	2
	 Survey
	  	5
	 Title Commitment
	  	6
	 Title Company
	  	6
	 to Seller’s knowledge
	  	14
	 to the knowledge of Seller
	  	14
	 Utilities
	  	3
	 Violations
	  	8
	 Warranties
	  	3
	 West Wing Exterior Work
	  	17
	 Work
	  	17

  

 -vi- 

 PURCHASE AND SALE AGREEMENT 
  
 THIS PURCHASE AND SALE AGREEMENT made as of January __, 2006 (the “Agreement”) by and between LD GEORGETOWN PLAZA
ASSOCIATES LLC (“Seller”), a Delaware limited liability company, having an office at 20 Westport Road, Wilton, Connecticut 06897, and SHC WASHINGTON, L.L.C. (“Purchaser”), a Delaware limited liability company having
an office at 77 West Wacker Drive, Suite 4600, Chicago, IL 60601. 
  
 RECITALS: 
  
 A. Seller is the owner of the
Property (as hereinafter defined) known as and by Street Nos. 2800, 2810 and 2822 Pennsylvania Avenue, N.W., Washington, D.C. 20007. The hotel known as the “Four Seasons Hotel, Washington, D.C.” (the “Hotel”) is operated
on a portion of the Property. 
  
 B. Seller desires to sell the
Property to Purchaser, and Purchaser desires to purchase the Property from Seller, on the terms and conditions hereinafter set forth. 
  
 NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties hereby agree as follows: 
  
 1. SALE AND PURCHASE, DESCRIPTION OF PROPERTY. 
  
 A. The Property. Seller agrees to sell, transfer, assign and convey,
or cause to be sold, transferred, assigned and conveyed, to Purchaser, and Purchaser agrees to purchase, all of Seller’s right, title and interest in and to: 
  
 (i) that certain plot, piece and parcel of land described in Exhibit A attached hereto (the
“Land”); 
  
 (ii) all easements,
rights of way, privileges, appurtenances, covenants, strips and gores pertaining to or benefiting the Land, if any, together with all right, title and interest of Seller, if any, in and to (a) any land within the right-of-way of any street,
road, avenue, open or proposed, public or private, in front of or adjacent to the Land or any portion thereof, to the center line thereof, and (b) all oil, gas and mineral rights appurtenant to the Land (collectively, the
“Appurtenances”); 
  
 (iii) all
buildings and improvements located on the Land (the “Improvements”; the Land, Appurtenances and Improvements being hereinafter sometimes collectively referred to as the “Real Estate”); 
  
 (iv) all tangible personal property and fixtures (which are
not part of the Improvements) of any kind attached to or located upon and used in connection with the ownership, maintenance, use or operation of the Hotel and the other portions of the Property as of the date hereof (or acquired by Seller and so
employed prior to Closing, as defined below), including, but not limited to, all furniture, fixtures, equipment, signs; all heating, lighting, plumbing, drainage, electrical, air conditioning, and other mechanical fixtures and equipment and systems;
all copy machines, computers, software, facsimile 

 
machines and other office equipment; all elevators, escalators, and related motors and electrical equipment and systems; all hot water heaters, furnaces,
heating controls, motors and boiler pressure systems and equipment; all shelving and partitions; all ventilating equipment, and all incinerating and disposal equipment; all spa and health club and fitness equipment and furnishings; all vans,
automobiles and other motor vehicles; all carpets, drapes, beds, furniture, furnishings, televisions, telephones and similar property; all stoves, ovens, freezers, refrigerators, dishwashers, disposals, kitchen equipment and utensils, tables,
chairs, plates and other dishes, glasses, silverware, serving pieces and other restaurant and bar equipment, apparatus and utensils; all audiovisual equipment, banquet equipment and laundry equipment; exclusive of (a) any personal property
leased under the Equipment Leases described below, (b) items belonging to Hotel guests and tenants under the Space Leases described below, (c) the items listed on Exhibit B, and (d) any property, including reservation
equipment, software, operating manuals, and other proprietary information, owned by the manager of the Hotel, Four Seasons Hotels Limited (the “Manager”) or its Affiliates, subject to the terms of the Hotel Management Agreement
(defined below) (collectively, the “FF&E”); provided, however, in all cases, subject to the rights of Manager under the Hotel Management Agreement with respect to any items bearing any tradenames, trademarks or logos belonging
to Manager or any of its Affiliates; 
  
 (v) all
merchandise, supplies, inventory and other items used for the operation and maintenance of guest rooms, guest services, restaurants, lounges, swimming pools, health clubs, and other common areas and recreational areas located within or relating to
the Improvements, including, without limitation, all food and beverage (alcoholic and non-alcoholic) inventory, office supplies and stationery, advertising and promotional materials, towels, washcloths, bedding and other linens, cleaning and
maintenance supplies, guest toiletries, napkins and tablecloths, china, flatware, glassware, paper goods, employee uniforms, and gift shop inventories and other items held for resale at the Hotel (collectively, the “Supplies”);
provided, however, in all cases subject to the rights of Manager under the Hotel Management Agreement with respect to any Supplies bearing any tradenames, trademarks or logos belonging to Manager or any of its Affiliates; 
  
 (vi) the leases of equipment, furnishings or other personal
property located on the Real Estate and used in connection with the operation of the Hotel and other portions of the Property, identified in Exhibit C, together with the rights to the property covered thereby (the “Equipment
Leases”); 
  
 (vii) the service,
maintenance, parking service management and other agreements in connection with the operation of the Hotel and the maintenance of the Real Estate and FF&E, identified in Exhibit D (the “Service Contracts”);

  
 (viii) the Second Amended and Restated Hotel
Management Agreement dated January 1, 1997, between Manager and Georgetown Plaza Associates (the “Hotel Management Agreement”); 
  

 2 

 (ix) the leases, licenses, concessions and other agreements granting any occupancy,
possessory or entry rights in or to the Real Estate, identified in Exhibit E (the “Space Leases”), including any prepaid rents or deposits held by Seller (or Manager) thereunder (the “Lease Deposits”);

  
 (x) all of Seller’s rights under that
certain Rental Agreement dated December 9, 2004 between Dittmar Company, as landlord and Georgetown Plaza Associates, as tenant for premises known as Apartment 1519, 4001 North 9th Street, Arlington, VA 22203 (the “Off-Site Rental
Agreement”); 
  
 (xi) the agreements
identified in Exhibit F, pursuant to which third parties have been given certain rights to rooms or services at the Hotel from and/or after the Closing Date (the “Rooms Agreements”); 
  
 (xii) the aggregate amount of any deposits
(“Reservation Deposits”) received by Seller (whether paid in cash or by credit card) as a down payment for reservations made for rooms, banquets, meals or other services to be supplied from and/or after the Closing Date (the
“Reservations”); 
  
 (xiii) the
books, records, files (including personnel files) and any customer, mailing or “frequent user” lists maintained solely in connection with the operation or promotion of the Hotel (and not any other property), including all non-proprietary
computer data bases containing any such information, but excluding any personal income tax records, any of the foregoing owned by the Manager and portions of employee files (such as medical records) to the extent a Seller is prohibited by applicable
law from disclosing the information contained therein (collectively, the “Books”); 
  
 (xiv) all goodwill of the Hotel and all of Seller’s rights, if any, in and to the tradenames, trademarks, service marks and logos
described on Exhibit G, but specifically excluding names, marks and logos which are owned by the Manager (the “Intangibles”); 
  
 (xv) to the extent assignable, all warranties, guaranties and indemnities with respect to the Real Estate and the FF&E for the benefit
of Seller (the “Warranties”); 
  
 (xvi) to the extent assignable, all licenses (including without limitation liquor, beer, wine, bar and similar licenses), permits (including without limitation health, swimming pool and elevator permits), certificates of occupancy, and
similar documents issued by any federal, state, district, or local authority in the name of Seller or any Affiliate of Seller and relating to the Hotel (the “Licenses”); 
  
 (xvii) all plans, drawings and specifications relating to the Hotel to the extent in Seller’s
possession or control (the “Plans and Specs”); 
  
 (xviii) all rights to water service, sanitary and storm sewer service, electrical service and gas service benefiting the Land and Improvements (the “Utilities”); 
  

 3 

 (xix) all cash on hand and other funds at the Hotel as of the Apportionment Date (defined
in Section 13 below), including till money (the “House Banks”); and 
  
 (xx) the outstanding receivables under (a) that certain note dated December 15, 1999 made by Christopher B. Hunsberger and Amy
L. Hunsberger to Seller evidencing the loan from Seller to Christopher B. Hunsberger and Amy L. Hunsberger in the original principal amount of $400,000 (the “General Manager’s Mortgage Loan”) and (b) all income or accounts
receivable for room, food and beverage and other sales and services at or from the Hotel for the period through the Apportionment Date (defined below) that have remained outstanding for a period less than or equal to ninety (90) days (the
“Accounts Receivable”; and, together with the outstanding balance of the General Manager’s Mortgage Loan, the “Receivables”). The Accounts Receivable shall include room charges for the night commencing on the
Apportionment Date and ending on the morning of the Closing Date, as well as income from food and beverage sales through 4:00 A.M. on the Closing Date. 
  
 The Land, the Appurtenances, the Improvements, the FF&E, the Supplies, the Equipment Leases, the Service Contracts, the Hotel Management Agreement,
the Space Leases, the Lease Deposits, the Off-Site Rental Agreement, the Rooms Agreements, the Reservations and Reservation Deposits, the Books, the Intangibles, the Warranties, the Licenses, the Plans and Specs, the Utilities, the House Banks and
the Receivables are hereinafter collectively called the “Property”. 
  
 B. Excluded from the Property. It is expressly agreed by the parties hereto that in addition to the specific exclusions set forth in Section 1.A above, the following shall not be included in the
Property to be sold hereunder: 
  
 (i) tax
deposits, utility deposits and other deposits held by parties other than Seller or the Manager, except for any transferable deposits assigned to Purchaser, for which Seller is to be reimbursed as herein provided; 
  
 (ii) any tax, insurance, FF&E, capital improvement
and/or other escrows, impounds or reserves held by the holder of any mortgage or deed of trust, the Manager or any other party, except to the extent such items are specifically assigned to Purchaser and for which Seller is reimbursed; and

  
 (iii) all checks, drafts, notes and other
evidence of indebtedness held at the Hotel on the Closing Date, and any balances on deposit with banking institutions relating to the Hotel (whether held by Seller or the Manager), exclusive of the House Banks. 
  
 2. PURCHASE PRICE. 
  
 A. Total Purchase Price. The total purchase price for the Property
(the “Purchase Price”) is the sum of ONE HUNDRED SIXTY EIGHT MILLION NINE HUNDRED THOUSAND AND NO/100 DOLLARS ($168,900,000.00). 
  

 4 

 B. Payment of the Purchase Price. The Purchase Price is payable by Purchaser as follows:

  
 (1) TEN MILLION AND NO/100 DOLLARS ($10,000,000.00) within one
business day following the execution hereof (the “Deposit”), by wire transfer of Federal funds to Commonwealth Land Title Insurance Company (the “Escrow Agent”), at the account designated in, and to be held by the
Escrow Agent pursuant to, the escrow agreement in the form of Exhibit H to be executed prior to or contemporaneously with the payment of the Deposit (the “Escrow Agreement”). The Deposit shall be paid to Seller at
Closing, and otherwise to the party entitled to receipt of the Deposit pursuant to the terms hereof. 
  
 (2) An amount equal to the Purchase Price, minus the Deposit, shall be paid in cash on the Closing Date by Purchaser causing said amount to be wire
transferred in immediately available Federal funds for credit to such bank account(s) as Seller shall designate in writing on or prior to the Closing Date. 
  
 C. Additional Payments. In addition to the Purchase Price, at the Closing Purchaser shall pay to Seller a sum equal to (i) Seller’s cost
for all liquor and beverages in unopened bottles (to the extent permitted by law), food not in process, items held for resale, and new and unused Supplies in unopened containers, (ii) the House Banks and (iii) the Receivables. 

 
 D. Adjustments to Purchase Price. Certain income and expenses
relating to the Property shall be prorated and adjusted in accordance with Section 13. If such computation shows that a net amount is owed by Purchaser to Seller, such amount shall be paid in cash to Seller by Purchaser on the Closing
Date. If the computation shows that a net amount is owed by Seller to Purchaser, such amount shall be credited against the cash portion of the Purchase Price. 
  

E. Allocation of Purchase Price. Prior to or at the Closing, Purchaser and Seller shall agree upon the allocation of the Purchase Price among
the Real Estate, FF&E, Supplies, Intangibles, and/or such other components of the Property as the parties may agree, which agreement shall be memorialized in a writing executed by each of Purchaser and Seller. In the event that Purchaser and
Seller are unable to agree upon the allocation of the Purchase Price prior to or at the Closing, then (i) $121,000,000.00 of the Purchase Price shall be allocated to Real Estate, (ii) not more than $7,000,000.00 of the Purchase Price shall
be allocated to FF&E and (iii) the remainder of the Purchase Price shall be allocated to Intangibles. 
  
 3. STATUS OF TITLE TO PROPERTY. 
  
 The Real Estate shall be sold, assigned and conveyed by Seller to Purchaser, and Purchaser shall accept same, subject only to the following (collectively,
the “Permitted Encumbrances”): 
  
 (i) the state of facts disclosed on the survey of the Property identified on Exhibit I (the “Survey”) and any additional state of facts which have arisen since the date of the Survey, provided such additional
state of facts to not render the title unmarketable; 
  
 (ii) the easements, conditions, covenants, restrictions, agreements, liens, leases, security interests and encumbrances for the Property set forth on Exhibit J; 
  

 5 

 (iii) provisions of all laws, ordinances and regulations affecting the Property,
including but not limited to zoning laws; 
  
 (iv) the occupancy rights of transient lodging guests; 
  
 (v) the Space Leases and Equipment Leases; 
  
 (vi) the liens of any real estate or personal property taxes, assessments, and water or sewer charges, provided the same are not yet due and payable, and subject to apportionment as provided in Section 13;
and 
  
 (vii) any other matter or thing affecting
the Property which Purchaser may expressly agree in writing to take subject to or to waive pursuant to the provisions of this Agreement. 
  
 4. TITLE REPORT, OBJECTIONS TO TITLE. 
  
 A. Procedures, Seller’s Obligations. Promptly after the execution of this Agreement, Purchaser shall order a title insurance report and
commitment (the “Title Commitment”) from Commonwealth Land Title Insurance Company (the “Title Company”) through its office in the District of Columbia (attention: David Nelson at (202) 312-5109), and such UCC
searches, Survey updates or new survey as Purchaser shall desire, and Purchaser shall furnish copies thereof to Seller within five (5) business days after receipt of the last of them, but in no event later than thirty (30) days from the
date hereof, along with legible copies of any recorded encumbrances disclosed therein and a written statement setting forth any exceptions to title (other than Permitted Encumbrances) disclosed therein which Purchaser is not required to accept under
the terms of this Agreement. Within ten (10) business days after timely receipt of Purchaser’s statement, Seller shall notify Purchaser of whether it intends to eliminate any or all such unacceptable exceptions. If Seller fails to deliver
such notice to Purchaser within such 10 business day period, Seller shall be deemed to have elected not to eliminate such exceptions. Seller shall be obligated to eliminate or remove (a) all mechanics’ and materialmen’s liens;
(b) all mortgages, deeds of trust, assignments of rent, UCC financing statements and other documents and instruments evidencing or securing any indebtedness encumbering the Property; (c) judgments and other liens and encumbrances affecting
the Property (other than Permitted Encumbrances) (x) which were created by Seller after the date hereof or (y) which may be removed, satisfied or discharged by the payment of a liquidated sum of money not to exceed $1,000,000 in the
aggregate; (d) exceptions for unfiled mechanics’ and materialmen’s liens and for parties in possession other than the tenants (or their assignees or sublessees) under the Space Leases and transient lodging guests; and
(e) exceptions for (x) that certain Agreement relating to Cable Television recorded September 16, 1984 as Instrument No. 34143 among the land records of the District of Columbia and (y) that certain lease evidenced by
Memorandum of Lease, Request for Notice recorded December 16, 1994 as Instrument No. 9400098 1 18 among the land records of the District of Columbia. Except as expressly set forth in the preceding sentence, Seller shall not be obligated to
remove, eliminate or cure any other title encumbrances to which Purchaser may object. Seller shall be entitled to reasonable adjournments of the Closing Date if additional time is needed to remove, eliminate or cure any title objection Seller is
required to remove or has agreed to remove. Notwithstanding any provision of this Agreement to the 

  

 6 

 
contrary, in lieu of satisfying any liens or encumbrances required to be satisfied under this Agreement, Seller may deposit with the Title Company such sum
of money or deliver to the Title Company such affidavits and certificates as may be required by the Title Company for the Title Company to omit such liens and encumbrances from any title insurance policy issued to Purchaser and to Purchaser’s
mortgage lender at the Closing. Seller may direct Purchaser to apply a portion of the Purchase Price to the satisfaction of any liens and encumbrances, provided that the Title Company will omit such liens and encumbrances from its title insurance
policy. If Seller so directs Purchaser, on the Closing Date Purchaser shall institute wire transfers, payable as directed by Seller, in an aggregate amount not exceeding the Purchase Price, to facilitate the satisfaction of any such liens or
encumbrances. 
  
 B. Acceptance or Termination. If Seller
is unwilling to eliminate any exceptions that it is not obligated to remove, or if Seller is unable (after using commercially reasonable, good faith efforts) to eliminate any exceptions it is obligated to remove or has agreed in writing to remove
(other than any such exceptions which can be removed upon the payment of a liquidated sum of money) within the time provided herein, Seller shall so notify Purchaser in writing and, within five (5) business days after receipt of Seller’s
notice, Purchaser shall notify Seller in writing of its intention to either (i) accept the Property subject to such exceptions without any abatement of the Purchase Price, in which event such exceptions shall no longer be objections to title
and shall be deemed to be for all purposes Permitted Encumbrances, Purchaser shall close hereunder notwithstanding the existence of same and Seller shall have no obligations whatsoever after the Closing with respect to Seller’s failure to
eliminate such exceptions, or (ii) terminate this Agreement by notice given to Seller, in which event Purchaser shall be entitled to a return of the Deposit, together with any interest accrued thereon, whereupon this Agreement shall terminate
and neither party hereto shall have any further obligations hereunder except for those expressly stated to survive the termination of this Agreement. 
  
 5. PURCHASER’S INVESTIGATIONS. 
  
 A. Inspections. Prior to the Closing Date, on not less than 48 hours prior notice to Seller, Seller shall permit Purchaser and Purchaser’s
agents and representatives to have reasonable access to the Property during normal business hours to physically inspect the Property, to conduct environmental and other tests and inspections (so long as such tests and inspections do not unreasonably
interfere with the use and occupancy of the Property by Seller, by guests or patrons of the Property, or by tenants) and to examine any Books located at the Property. The costs and expenses of Purchaser’s investigations shall be borne solely by
Purchaser. Requests for all such inspections and investigations shall be given to David Shepherd (whose contact information is included in Section 23 hereof), and a representative of Seller shall be entitled to accompany Purchaser’s
representatives or agents on all such inspections and investigations. Neither Purchaser, nor any of Purchaser’s agents or representatives, shall have any conversations or discussions with existing Hotel employees, except with the express
permission of Seller and upon such terms and conditions as Seller may dictate, or as otherwise permitted under this Agreement. Before conducting any invasive tests at the Property, Purchaser shall deliver to Seller evidence of general liability
insurance coverage reasonably acceptable to Seller in an amount not less than $1,000,000 combined single limit for personal injury and property damage naming Seller and its manager as additional insureds. In the event that the transaction
contemplated by this Agreement does not close for any reason, Purchaser shall have 

  

 7 

 
the obligation to repair any damage caused by Purchaser’s inspections and tests to the condition existing prior to Purchaser’s entry, and to remove
any liens placed on the Property by contractors or consultants retained by Purchaser in connection with its investigations, and Purchaser hereby indemnifies Seller from and against any liability, loss or expense resulting from Purchaser’s
inspections and its failure to so repair and/or remove. The terms of this Agreement and all information furnished by Seller to Purchaser in accordance with the provisions of this Agreement or obtained by Purchaser in the course of its investigations
shall be treated as confidential information by Purchaser, subject to the provisions of Section 39 below. Purchaser’s obligations and indemnities under this Section 5.A shall survive the termination of this Agreement.
Purchaser acknowledges that no facts, conditions or circumstances discovered during the course of any such investigations shall give Purchaser any right or reason to terminate this Agreement or to obtain any reduction in the Purchase Price, unless
such facts, conditions or circumstances represent a material breach of any of Seller’s representations and warranties set forth in Section 7.A, as provided for in Section 11.A. 
  
 B. Due Diligence Materials. Purchaser acknowledges that is has
received copies of the documents listed on Exhibit U hereto (the “Due Diligence Materials”). 
  
 C. [Intentionally Omitted]. 
  
 D. Operational Licenses. Prior to the date hereof, Purchaser shall have obtained, or determined that it will be able to obtain or retain, all
permits, licenses, approvals and other authorizations necessary or desirable to operate the Hotel and all restaurants, bars and lounges presently located in the Hotel, including, without limitation, the Stipulated License and the timely transfer of
the ABC License and such other licenses as shall be necessary for the continued on-premises sale and service of alcoholic beverages at the Hotel. To that end, subject to Section 10 hereof, Seller shall reasonably cooperate with
Purchaser, at Purchaser’s cost and expense, and Seller shall execute such transfer forms, license applications and other documents customarily required in such jurisdiction for Purchaser or its designees to obtain such permits, licenses,
approvals and other authorizations. 
  
 E. Violations.
Purchaser shall purchase the Property subject to any and all notes or notices of violations of law, or municipal ordinances, orders, designations or requirements whatsoever noted in or issued by any federal, state, district, municipal or other
governmental department, agency or bureau or any other governmental authority having jurisdiction over the Property (collectively, “Violations”), or any condition or state of repair or disrepair or other matter or thing, whether or
not noted, which, if noted, would result in a violation being placed on the Property. Seller shall have no duty to remove or comply with or repair any of the aforementioned Violations, or other conditions, and Purchaser shall accept the Property
subject to all such Violations, the existence of any conditions at the Property that would give rise to such Violations, if any, and any governmental claims arising from the existence of such Violations, in each case without any abatement of or
credit against the Purchase Price. 
  
 6. CLOSING, CLOSING
DATE. 
  
 Subject to the compliance or waiver of the various
conditions set forth herein, the payment of the balance of the Purchase Price, the delivery of the documents described in 

  

 8 

 
Section 12 and the performance of the various other obligations and activities contemplated to take place on the Closing Date (collectively, the
“Closing”) shall occur at 10:00 A.M. on February 28, 2006 (the “Closing Date”), at the office of Seller’s counsel, Paul, Hastings, Janofsky & Walker LLP, at 75 East 55th Street, New
York, New York. In lieu of a physical closing in New York, either party may elect to close in escrow with the Title Company, provided that notice of such election is given to the other party at least ten (10) business days prior to the Closing
Date. 
  
 7. REPRESENTATIONS AND WARRANTIES. 
  
 A. Seller Representations and Warranties. Seller represents and
warrants that, except as otherwise disclosed in the Due Diligence Materials: 
  
 (1) There are no leases, licenses, concessions or any other agreements giving anyone other than Seller and transient hotel guests a right to use or occupy the Property or any part thereof, except for the Space Leases
identified on Exhibit E. Except as set forth on Exhibit E, to Seller’s knowledge, each of said Space Leases is in full force and effect and there are no material defaults thereunder by either landlord or tenant. No rent
or additional rent due under the Space Leases has been paid beyond the current month. There are no security deposits or advance payments of rent being held by Seller pursuant to any of the Space Leases except as set forth on Exhibit E.
True and complete copies of each Space Lease have been made available to Purchaser. 
  
 (2) True and complete copies of each of the Equipment Leases, Service Contracts, and Rooms Agreements identified on Exhibits C, D, and F, respectively, have been made available to Purchaser, and there are no
other material equipment leases, service contracts, room agreements or other similar agreements affecting the ownership or operation of the Property that are not listed on said exhibits . To Seller’s knowledge, each of the Equipment Leases, the
Service Contracts, and Rooms Agreements is in full force and effect and there are no material defaults thereunder by any party. 
  
 (3) To Seller’s knowledge, there are no litigations, governmental or administrative proceedings, notices of Violations, or arbitrations presently
pending against Seller or the Property which, if adversely determined, would have a material adverse effect on the Property, including the financial condition or results of operation thereof. 
  
 (4) Except for liens and security interests to be released at Closing, all of
the FF&E, Intangibles, Receivables and Supplies are owned by Seller free and clear of all liens and encumbrances. 
  
 (5) Seller has not received written notice of any pending or threatened condemnation proceedings affecting the Property. 
  
 (6) Seller is not a “foreign person” for purposes of
Section 1445 of the Internal Revenue Code or any applicable regulations promulgated thereunder. 
  
 (7) No Hotel Employee (defined in Section 13.E below) is covered by a union contract, collective bargaining agreement or other written
employment agreement. Except for 

  

 9 

 
the Engineering Staff (defined in Section 13.E below) who are employed by an Affiliate of Seller, Seller has no employees working at the Property
and all Hotel Employees are employed by an Affiliate of the Manager. All payments required or requested by Manager or its Affiliates in connection with the General Managers’ International Retirement Plan have been made, and the general manager
of the Hotel is participating in the replacement for such plan that has been implemented by the Manager. 
  
 (8) Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware. Seller has full
power and authority to make, execute, deliver and perform this Agreement and neither the execution and delivery of this Agreement nor the consummation of any of the transactions contemplated herein will violate or contravene the provisions of any
agreement, order, judgment or directive to which it may be a party or by which it may be bound. The person executing this Agreement on behalf of Seller has been duly authorized to do so. 
  
 (9) A true and complete copy of the Hotel Management Agreement has been made available to Purchaser. 
  
 (10) Seller has not (i) made a general assignment for the benefit of
creditors, (ii) filed any voluntary petition in bankruptcy or suffered the filing of any involuntary petition by Seller’s creditors that remains pending, (iii) suffered the appointment of a receiver to take possession of all, or
substantially all, of Seller’s assets that remains pending, (iv) suffered the attachment or other judicial seizure of all, or substantially all of Seller’s assets that remains pending, (v) admitted in writing its inability to pay
its debts as they come due or (vi) made an offer of settlement, extension or composition to its creditors generally. 
  
 (11) A true and complete copy of the note evidencing the General Manager’s Mortgage Loan and the corresponding deed of trust has been made available
to Purchaser. As of November 30, 2005, the outstanding principal balance of the General Manager’s Mortgage Loan is $342,000.01. To Seller’s knowledge, there are no outstanding events of default under the General Manager’s
Mortgage Loan that have extended beyond applicable notice and cure periods. 
  
 (12) Louis Dreyfus Property Group, Inc. (“Louis Dreyfus”) has a net worth of not less than $50,000,000.00. 
  
 Each of the foregoing representations and warranties of Seller shall be deemed remade at and as of the Closing (subject to the provisions of
Section 9.A) and shall survive the Closing for a period of one (1) year. Seller shall update any exhibit attached hereto if required because of the provisions of Section 9.A. 
  
 B. Purchaser’s Representations and Warranties. Purchaser
represents and warrants as follows: 
  
 (1) Purchaser is a limited
liability company duly organized, validly existing and in good standing under the laws of Delaware. Purchaser has full power and authority to make, execute, deliver and perform this Agreement and neither the execution and delivery of this Agreement
nor the consummation of any of the transactions contemplated herein will violate or 

  

 10 

 
contravene the provisions of any agreement, order, judgment or directive to which it may be a party or by which it may be bound. The person executing this
Agreement on behalf of the Purchaser has been duly authorized to do so. 
  
 (2) (a) None of Purchaser or, to Purchaser’s actual knowledge, its affiliates, is in violation of any laws relating to terrorism, money laundering or the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Action of 2001, Public Law 107-56 and Executive Order No. 13224 (Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism) (the “Executive
Order”) (collectively, the “Anti-Money Laundering and Anti-Terrorism Laws”). 
  
 (b) None of Purchaser or, to Purchaser’s actual knowledge, its affiliates, is acting, directly or indirectly, on behalf of terrorists, terrorist
organizations or narcotics traffickers, including those persons or entities that appear on the Annex to the Executive Order, or are included on any relevant lists maintained by the Office of Foreign Assets Control of U.S. Department of Treasury,
U.S. Department of State, or other U.S. government agencies, all as may be amended from time to time. 
  
 (c) None of Purchaser or, to Purchaser’s actual knowledge, its affiliates or, without inquiry, any of its brokers or other agents, in any capacity in
connection with the purchase of the Property (i) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any person included in the lists set forth in the preceding
paragraph; (ii) deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order; or (iii) engages in or conspires to engage in any transaction that evades or
avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Money Laundering and Anti-Terrorism Laws. 
  
 (d) Purchaser understands and acknowledges that Seller may become subject to further anti-money laundering regulations, and
agrees to execute instruments, provide information, or perform any other acts as may reasonably be requested by Seller, for the purpose of: (i) carrying out due diligence as may be required by applicable law to establish Purchaser’s
identity and source of funds; (ii) maintaining records of such identities and sources of funds, or verifications or certifications as to the same; and (iii) taking any other actions as may be required to comply with and remain in
compliance with anti-money laundering regulations applicable to Purchaser. 
  
 (e) Neither Purchaser, nor any person controlling or controlled by Purchaser, is a country, territory, individual or entity named on a Government List, and the monies used in connection with this Agreement and amounts
committed with respect thereto, were not and are not derived from any activities that contravene any applicable anti-money laundering or anti-bribery laws and regulations (including funds being derived from any person, entity, country or territory
on a Government List or engaged in any unlawful activity defined under Title 18 of the United States Code, Section 1956(c)(7)). For purposes of this paragraph (“Government List” means any of (a) the two lists maintained by
the United States Department of Commerce (Denied Persons and Entities), (b) the list maintained by the United States Department of Treasury 

  

 11 

 
(Specially Designated Nationals and Blocked Persons), and (c) the two lists maintained by the United States Department of State (Terrorist Organizations
and Debarred Parties). 
  
 (3) Neither Purchaser nor any Affiliate
of Purchaser is a competitor of Manager, is of ill repute or is in any other manner a person, firm or corporation with whom or with which the average prudent businessman would not wish to associate in a commercial venture. 
  
 (4) PURCHASER HEREBY REPRESENTS THAT BY REASON OF ITS BUSINESS AND FINANCIAL
EXPERIENCE, AND THE BUSINESS AND FINANCIAL EXPERIENCE OF THOSE PERSONS RETAINED BY IT TO ADVISE IT WITH RESPECT TO ITS INVESTMENT HEREIN, PURCHASER HAS SUCH KNOWLEDGE, SOPHISTICATION AND EXPERIENCE IN BUSINESS AND FINANCIAL MATTERS SO AS TO BE
CAPABLE OF EVALUATING THE MERITS AND RISKS OF THE PROSPECTIVE INVESTMENT AND IS ABLE TO BEAR THE ECONOMIC RISK OF SUCH INVESTMENT. PURCHASER HAS HAD ADEQUATE OPPORTUNITY AND TIME TO REVIEW AND ANALYZE THE RISKS ATTENDANT TO THE TRANSACTIONS
CONTEMPLATED HEREIN WITH THE ASSISTANCE AND GUIDANCE OF COMPETENT PROFESSIONALS. 
  
 (5) PURCHASER ACKNOWLEDGES THAT IT HAS HAD TIME TO INSPECT, EXAMINE AND INVESTIGATE THE PROPERTY AND TO REVIEW THE DUE DILIGENCE DATA RELATING THERETO. PURCHASER REPRESENTS, WARRANTS AND AGREES THAT PURCHASER IS
RELYING SOLELY ON ITS OWN INSPECTIONS, EXAMINATIONS AND INVESTIGATIONS IN MAKING THE DECISION TO PURCHASE THE PROPERTY. 
  
 (6) EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH HEREIN, PURCHASER HAS NOT RELIED, AND IS NOT RELYING, UPON ANY INFORMATION,
DOCUMENTS, SALES BROCHURES, OR OTHER LITERATURE, MAPS OR SKETCHES, PROJECTIONS, PRO FORMAS, STATEMENTS, REPRESENTATIONS, GUARANTEES OR WARRANTIES (WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, MATERIAL OR IMMATERIAL) THAT MAY HAVE BEEN GIVEN OR MADE
BY OR ON BEHALF OF SELLER. 
  
 (7) PURCHASER IS PURCHASING THE
PROPERTY IN ITS “AS IS” CONDITION “WITH ALL FAULTS” AND WITHOUT ANY WARRANTIES, REPRESENTATIONS OR GUARANTIES OF ANY KIND, ORAL OR WRITTEN, EXPRESS OR IMPLIED, CONCERNING THE PROPERTY FROM OR ON BEHALF OF SELLER, EXCEPT AS MAY BE
EXPRESSLY SET FORTH HEREIN. PURCHASER ACKNOWLEDGES THAT, EXCEPT AS MAY BE EXPRESSLY SET FORTH HEREIN, SELLER HAS NOT, DOES NOT AND WILL NOT MAKE ANY REPRESENTATIONS, WARRANTIES OR GUARANTIES, OF ANY KIND, ORAL OR WRITTEN, EXPRESS OR IMPLIED,
CONCERNING THE PROPERTY INCLUDING, WITHOUT LIMITATION (I) THE QUALITY, ADEQUACY, STATE OF REPAIR OR PHYSICAL CONDITION OF THE PROPERTY INCLUDING, BUT NOT LIMITED TO, THE STRUCTURAL ELEMENTS, FOUNDATION, ROOF, APPURTENANCES, ACCESS, LANDSCAPING,
PARKING 

  

 12 

 
FACILITIES, ELECTRICAL, MECHANICAL, HVAC, PLUMBING, SEWAGE OR UTILITY SYSTEMS, FACILITIES OR APPLIANCES ON THE REAL ESTATE OR ANY PORTION THEREOF, (II) THE
QUALITY, NATURE, ADEQUACY OR PHYSICAL CONDITION OF SOILS OR GROUND WATER AT OR UNDER THE LAND, (III) THE EXISTENCE, QUALITY, NATURE, ADEQUACY OR PHYSICAL CONDITION OF ANY UTILITY SERVING THE REAL ESTATE, (IV) THE PROPERTY TAXES NOW OR HEREAFTER
PAYABLE ON THE PROPERTY OR THE VALUATION OF THE PROPERTY FOR PROPERTY TAX PURPOSES, (V) THE DEVELOPMENT POTENTIAL OF THE PROPERTY OR THE HABITABILITY, MERCHANTABILITY OR FITNESS, SUITABILITY OR ADEQUACY OF THE PROPERTY OR ANY PORTION THEREOF
FOR ANY PARTICULAR USE OR PURPOSE, (VI) THE ZONING OR OTHER LEGAL STATUS OF THE PROPERTY, (VII) THE COMPLIANCE BY THE PROPERTY OR OF THE BUSINESS CONDUCTED THEREON, OR ANY PORTION THEREOF, WITH ANY APPLICABLE CODES, LAWS, REGULATIONS, STATUTES,
ORDINANCES, COVENANTS, CONDITIONS OR RESTRICTIONS OF ANY GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY OR OF ANY OTHER PERSON OR ENTITY, (VIII) THE QUALITY OF ANY LABOR OR MATERIALS RELATING IN ANY MANNER TO THE PROPERTY, (IX) THE CONDITION OF
TITLE TO THE REAL ESTATE OR THE NATURE, STATUS AND EXTENT OF ANY LEASE, ENCUMBRANCE OR OTHER MATTER AFFECTING TITLE TO THE PROPERTY, OR (X) THE ENVIRONMENTAL CONDITION OF THE PROPERTY, INCLUDING ITS COMPLIANCE WITH ENVIRONMENTAL LAWS AND THE
PRESENCE OR NON-PRESENCE OF HAZARDOUS SUBSTANCES. 
  
 (8)
PURCHASER ACKNOWLEDGES THAT SELLER SHALL NOT BE LIABLE TO PURCHASER FOR ANY PROSPECTIVE OR SPECULATIVE PROFITS, OR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES, WHETHER BASED UPON CONTRACT, TORT OR NEGLIGENCE OR IN ANY OTHER MANNER ARISING
FROM THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 
  
 Each
of the foregoing representations and warranties of Purchaser shall be deemed remade at and as of the Closing and shall survive the Closing. 
  
 C. Certain Limitations on Seller’s Representations and Warranties. The representations and warranties of Seller set forth in
Section 7.A are subject to the following express limitations: 
  
 (1) Seller does not represent or warrant that any particular Space Lease, Equipment Lease, Rooms Agreement or Service Contract will be in force or effect as of the Closing or that the parties, other than Seller, to
any Space Lease, Equipment Lease, Rooms Agreement or Service Contract, will not be in default under their respective agreements; 
  
 (2) The expiration or termination of any Space Lease, Equipment Lease, Rooms Agreement or Service Contract shall not affect the obligations of Purchaser
hereunder or render any representation or warranty of Seller untrue; 
  

 13 

 (3) To the extent that Purchaser knows or is deemed to know prior to the Closing Date that Seller’s
representations and warranties are inaccurate, untrue or incorrect in any way, such representations and warranties shall be deemed modified to reflect Purchaser’s knowledge or deemed knowledge, as the case may be, provided if Seller knew that
such representation or warranty was inaccurate, untrue or incorrect at the time it was made, it will be deemed so modified only if the Closing occurs, and deemed modifications shall not be effective for the purposes of Sections 11.A(2) or
24.B. For purposes of this Agreement, Purchaser shall be (“deemed to know”) that a representation or warranty is untrue, inaccurate or incorrect to the extent that this Agreement, the Due Diligence Materials, the Title
Commitment, any survey, any UCC search, or any studies, tests, reports, or analyses prepared by or for Purchaser or any of its employees, agents, representatives or attorneys (all of the foregoing being herein collectively called the
“Purchaser’s Representatives”) contain information that is inconsistent with such representation or warranty; 
  
 (4) For purposes of this Agreement, “to Seller’s knowledge”, “to the knowledge of Seller”, or “known to
Seller” (or words of similar meaning) shall mean to the actual knowledge of David Shepherd (the “Designated Person”), after due inquiry of management, including the general manager of the Hotel, but otherwise without
independent investigation or inquiry by such individual and without any imputation to such individual or to Seller whatsoever, IT BEING FURTHER UNDERSTOOD THAT THE DESIGNATED PERSON IS ACTING PURELY IN A CORPORATE AND NOT A PERSONAL CAPACITY, SHALL
HAVE NO LIABILITY TO PURCHASER WHATSOEVER IN THE EVENT OF A BREACH, OMISSION OR OTHER INACCURACY OF ANY SELLER REPRESENTATION OR WARRANTY SET FORTH HEREIN OR IN ANY DOCUMENT EXECUTED AND DELIVERED BY SELLER PURSUANT HERETO, PURCHASER’S SOLE
REMEDY BEING LIMITED TO SELLER AND AS SET FORTH IN SECTION 24.B BELOW; 
  
 (5) As used in this Agreement, any reference to a written notice received by Seller shall mean actual documentary notice which, to the actual knowledge of the Designated Person, has been received by Seller from any
third party asserting a claim, liability, or violation against Seller or with respect to the Property and shall not include any constructive notice or any statement by a party other than the party giving notice that any such notice has been given;

  
 (6) Seller’s liability shall be limited as set forth in
Section 38 below. 
  
 D. Survival of
Representations and Warranties. The only representations, warranties and agreements of Seller or Purchaser hereunder that will survive the Closing are those that are specifically stated herein to survive. Any claim based upon any alleged breach
of any of Seller’s representations and warranties must be asserted in writing (in specific detail) within one (1) year after the Closing and any proceeding in respect thereof must be commenced within thirty (30) days after delivery of
such written notice. 
  
 8. ENVIRONMENTAL. 
  
 Seller’s knowledge concerning hazardous substances or materials in, on
or under the Property is limited solely to information contained in those documents (the “Environmental Documents”) identified on Exhibit L of this Agreement, which Seller represents are the only 

  

 14 

 
documents prepared since 1998 in Seller’s possession with respect to environmental matters at the Property. Seller makes no representations or
warranties whatsoever as to the accuracy of the information in the Environmental Documents (including, but not limited to, whether the Environmental Documents are complete with regard to identifying, characterizing the extent of or remediation of
Hazardous Substances at the Property) or as to the environmental condition of the Property or the compliance thereof with Environmental Laws. Purchaser acknowledges that it has hired environmental consultants and counsel to make an independent
analysis of information in the Environmental Documents and to make an independent inspection of the Property with respect to environmental conditions. Purchaser understands that it may later discover facts in addition to or different from the facts
which it now believes to be true, and that it may later discover claims or causes of action, the existence of which it does not now suspect, with respect to environmental conditions at the Property. Purchaser, on behalf of itself, its successors and
assigns, hereby releases, acquits and forever discharges Seller and each of Seller’s respective officers, employees, directors, shareholders, members, partners, agents, employees, attorneys, successors and assigns (which release shall operate
as a final and irrevocable general release) from all known and unknown claims and causes of action which Purchaser (including its successors and assigns) has now, has had in the past, or may have in the future with regard to the environmental
condition of the Property and the presence of Hazardous Substances thereon, and agrees that this general release may not be terminated or rescinded by Purchaser because of any later discovery of different or additional facts or any unknown or
unsuspected past claims or causes of action. As used herein, “Environmental Laws” shall mean all federal, state and local laws, statutes, rules, codes, ordinances, regulations orders, judgments, decrees, binding and enforceable
guidelines, binding and enforceable written policy and common law now or hereafter in effect and in each case as amended, or any judicial or administrative interpretation thereof, including any judicial or administrative order, consent decree or
judgment in each case, to the extent binding, relating to the environment, the protection of health or Hazardous Substances, including but not limited to the Comprehensive Environmental Response Compensation and Liability Act, 42 USC § 9601 et
seq. (“CERCLA”); the Resource Conservation and Recover Act, 42 USC § 6901 et seq. (“RCRA”); the Federal Water Pollution Control Act, 33 USC § 1251 et seq.; the Toxic Substances Control Act, 15 USC §
2601 et seq.; the Clean Air Act, 42 USC § 7401 et seq.; the Safe Drinking Water Act, 42 USC § 3803 et seq.; the Oil Pollution Act of 1990, 33 USC § 2701 et seq.; the Emergency Planning and the Community Right-to-Know Act of 1986, 42
USC § 11001 et seq.; the Hazardous Material Transportation Act, 49 USC § 1801 et seq.; and the Occupational Safety and Health Act, 29 USC § 651 et seq. (to the extent it regulates occupational exposure to Hazardous Substances);
any state and local or foreign counterparts or equivalents, in each case as amended from time to time; and “Hazardous Substances” shall mean (a) substances that are defined or listed in, or otherwise classified pursuant to, any
applicable law or regulations as “hazardous substances”, “hazardous materials”, hazardous wastes”, “toxic substances”, “pollutants”, “contaminants”, or other similar term intended to define,
list, or classify a substance by reason of such substance’s ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or petroleum derived substances, natural gas,
natural gas liquids, synthetic gas, drilling fluids, produced waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any flammable substances or explosives or
any radioactive materials, (d) asbestos in any form, (e) polychlorinated biphenyls, 

  

 15 

 
(f) mold, mycotoxins or microbial matter (naturally occurring or otherwise), and (g) infectious waste. The provisions of this Section 8
shall survive the Closing. 
  
 9. PRE-CLOSING COVENANTS AND
OTHER MATTERS. 
  
 A. Interim Operation. Seller hereby
covenants and agrees that between the date of this Agreement and the Closing, Seller shall use commercially reasonable efforts to cause the Hotel and the rest of the Property to be operated and maintained consistent with prior practice. Between the
date of this Agreement and the Closing, Seller and Manager shall be permitted to terminate or modify existing Equipment Leases, Service Contracts and Rooms Agreements, and to enter into new Equipment Leases, Service Contracts and Rooms Agreements on
commercially reasonable terms determined by Seller or Manager in the exercise of its good faith judgment. Seller will not terminate or modify any existing Space Lease or enter into any new Space Lease without the prior written consent of Purchaser,
which shall not be unreasonably withheld or delayed. If Purchaser fails to respond to a request for consent within ten (10) days after receipt of such request, such consent shall be deemed given. Seller shall provide Purchaser with copies of
any such terminations, modifications or new leases or agreements promptly after the execution thereof. Except in the ordinary course of business, or as permitted under Section 9.B below, Seller shall not transfer to any third party or
remove from the Hotel any FF&E after the date hereof, except for repair or replacement thereof with items of substantially similar quality. Seller will not take any action which will adversely affect title to the Property or cause the
representations and warranties set forth in Section 7.A above to be untrue as of the Closing Date. Seller shall timely notify Manager of the sale to Purchaser and shall use commercially reasonable efforts to obtain an estoppel
certificate from Manager in substantially the form attached hereto as Exhibit K (the “Manager Estoppel”). Seller shall also use commercially reasonable efforts to obtain estoppel certificates prior to Closing from tenants or
other parties as may be requested by Purchaser or its lender, but the receipt of such other estoppels shall not be a condition of Closing. Seller will not be obtaining any consents which may be required under the terms of any Equipment Leases or
Service Contracts in connection with their assignment to and assumption by Purchaser. 
  
 B. Art Work. The paintings, sculptures and other works of art located on the Property and identified in Exhibit B (the “Art Work”) are not owned by Seller and are not included in
the sale of the Property. However, Seller has agreed to cause the owner of the Art Work to enter into a license agreement with Purchaser’s affiliate at the Closing in the form of Exhibit T (the “Art Work License”).
Prior to the Closing, Seller and the owner of the Art Work shall have the right to remove and replace individual works of art on the same terms as those set forth in the Art Work License, as though the Art Work License had been previously executed.

  
 C. Construction Work. 
  
 (1) Seller will proceed with reasonable diligence, subject to force majeure
delays, on and after the date hereof, and to the extent not completed by the Closing Date, continuing after the Closing, to complete at its sole cost (i) the close-out work associated with the recent renovation of the east wing of the Hotel and
more specifically set forth on Exhibit X (the “Close-Out Work”), which Close-Out Work shall be completed on or before March 31, 2006, (ii) the work relating to exterior of the west wing of the Hotel and more
specifically set 

  

 16 

 
forth on Exhibit Y (the “West Wing Exterior Work”), which West Wing Exterior Work shall be completed in accordance with the
schedule set forth on Exhibit Y, (iii) the HVAC work more specifically set forth on Exhibit Z (the “HVAC Work”), which HVAC Work shall be completed on or before June 30, 2006 (the Close-Out Work,
West Wing Exterior Work and HVAC Work referred to collectively herein as the “Work”) and (iv) the renovations in progress as of the date hereof in Hotel rooms 469 and 477, which renovations shall (a) be completed on or
before the Closing and (b) upon completion render rooms Hotel 469 and 477 of comparable quality and finish with similarly-situated rooms located in the west wing of the Hotel. The scheduled completion dates for each of the foregoing Work are
subject to reasonable extensions to compensate for delays caused by circumstances beyond Seller’s reasonable control. 
  
 (2) Seller represents that there are no physical “punch-list” items associated with the Close-Out Work or the renovations to which it relates
that remain uncompleted or outstanding as of the date hereof. 
  
 (3) In connection with the HVAC Work, Seller shall: (i) submit for Purchaser’s prior written approval, which shall not be unreasonably withheld, detailed plans and specifications prepared by licensed and competent architects and
engineers, and (ii) submit for Purchaser’s prior written approval, which shall not be unreasonably withheld, the names, addresses and reasonable background information concerning all contractors, subcontractors and suppliers that will
perform or provide materials for such HVAC Work, together with the contracts therefor which shall be in reasonably customary form, including insurance requirements and indemnities for the benefit of Purchaser and the Manager. 
  
 (4) In connection with all Work, Seller shall: (i) obtain and deliver to
Purchaser interim and final contractor, subcontractor and supplier lien waivers and sworn statements for all such Work as it progresses, together with such other documents as may be reasonably required for Purchaser to update the title insurance
obtained pursuant to the Title Commitment and in connection with the transaction contemplated by this Agreement, in order to extend such title insurance to cover all work and materials in place, (ii) use union labor to the extent reasonably
required to preserve labor harmony at the Hotel, (iii) schedule as reasonably requested by Purchaser periodic meetings between Seller’s contractors and Purchaser, (iv) comply with such reasonable requirements as Purchaser and Manager
may impose concerning the manner and times in which such Work shall be done so as not to unreasonably interfere with the operations of the Hotel (it being understood that Purchaser shall permit Seller and its contractors to reasonably access the
Hotel to perform such Work and shall reasonably cooperate and cause the Manager to reasonably cooperate, with Seller to permit such work to be completed within the time frames set forth therefor), and (v) cause the Work to be performed
(1) in a professional, workmanlike manner, (2) in accordance with plans and specifications approved by Purchaser in writing as provided herein as to the HVAC Work and in accordance with Exhibit X as to the Close-Out Work and
Exhibit Y as to the West Wing Exterior Work, (3) so as to not to materially adversely affect the systems and equipment or the structure of the Improvements, and (4) in compliance with all legal requirements and the requirements
of the Management Agreement. 
  
 (5) Seller shall keep the
Property free from any mechanic’s, materialman’s or similar liens or encumbrances, and any claims therefor, in connection with the Work. Seller 

  

 17 

 
shall remove, or insure or bond over in a manner reasonably satisfactory to Purchaser, any such claim, lien or encumbrance within thirty (30) days after
the date Seller is notified of such lien or encumbrance. If Seller fails to do so, Purchaser may pay the amount thereof or take such other action as Purchaser deems reasonably necessary to remove such claim, lien or encumbrance. Any such amount so
paid and costs incurred by Purchaser in connection therewith will be immediately reimbursed by Seller to Purchaser upon demand, without limitation as to other remedies available to Purchaser. 
  
 (6) Seller hereby unconditionally, absolutely and irrevocably agrees to
indemnify and hold Purchaser and Manager harmless of, from and against any and all costs, claims, obligations, damages, penalties, causes of action, losses, injuries, liabilities and expenses, including, without limitation, reasonable
attorneys’ fees, arising in connection with the Work, unless caused by the negligent or wrongful act of the indemnified party or such party’s agent. 
  

(7) Seller and Purchaser acknowledge that Louis Dreyfus has agreed to guaranty Seller’s performance under this Section 9.C, pursuant
and subject to the terms of that certain Guaranty to be delivered at Closing. 
  
 (8) The provisions of this Section 9.C shall survive the Closing. 
  
 10. ALCOHOLIC BEVERAGE CONTROL LICENSES. 
  
 A. Transfer of ABC License. Alcoholic beverages are being sold at the Hotel pursuant to that certain Alcoholic Beverage Control License of the
“Retailer CH 02” license class, designated by license number 1852, with an expiry date of March 31, 2006, issued by the District of Columbia Alcoholic Beverage Regulation Administration (the “Administration”),
permitting the on-premises sale and service of alcoholic beverages at the Hotel subject to the terms and conditions thereof (the “ABC License”). Prior to the Closing Date, Purchaser shall make such applications to the Administration
as may be necessary to have the existing ABC License transferred to Purchaser or to an entity designated by Purchaser, which applications shall provide that the effectiveness of such transfer shall be conditioned upon the Closing hereunder, and
Seller shall cooperate with Purchaser in this regard, at Purchaser’s sole cost and expense. Purchaser shall use all reasonable efforts at Purchaser’s sole cost and expense to obtain the approval of the Administration for such transfer on
or before the Closing Date. 
  
 B. Stipulated License. In
order to assure that the Closing will not be delayed as a result of the processing of the transfer approval for the ABC License, Purchaser shall make contemporaneous application to the Administration for a temporary license to permit the continued
on-premises sale and service of alcoholic beverages at the Hotel after the Closing, pending the Administration’s approval of the transfer of the existing ABC License (the “Stipulated License”). Purchaser shall use all
reasonable efforts at Purchaser’s sole expense to obtain the Stipulated License prior to the Closing Date, and Seller shall likewise cooperate with Purchaser in this regard, at Purchaser’s sole cost and expense. 
  
 C. Survival. The provisions of this Section 10 shall
survive the Closing. 
  

 18 

 11. CONDITIONS TO CLOSING. 
  
 A. Purchaser’s Conditions. Satisfaction of each of the following conditions, any of which may be waived in
writing by Purchaser, shall be deemed a condition to Purchaser’s obligation to close hereunder: 
  
 (1) Seller shall be able to deliver title to the Property in accordance with the provisions of Sections 3 and 4 and shall be able to deliver
the documents referred to in Section 12.A. 
  
 (2)
Subject to Section 7.C, the representations and warranties set forth in Section 7.A shall be substantially true and correct in all material respects as of the Closing Date, with the exception of Exhibits which must be updated
at the Closing Date to reflect changes permitted under the terms of this Agreement. 
  
 (3) Seller shall have substantially performed, observed and complied with all of the pre-Closing covenants, agreements and conditions required by this Agreement to be performed, observed and complied with by it prior
to or as of the Closing. 
  
 (4) The Manager Estoppel shall have
been obtained. 
  
 B. Seller’s Conditions.
Satisfaction of each of the following conditions, any of which may be waived in writing by Seller, shall be deemed a condition to Seller’s obligation to close hereunder: 
  
 (1) Purchaser shall be able to deliver the balance of the Purchase Price and the documents referred to in
Section 12.B. 
  
 (2) The representations and
warranties set forth in Section 7.B shall be substantially true and correct in all material respects as of the Closing Date. 
  
 (3) Purchaser shall have substantially performed, observed and complied with all of the pre-Closing covenants, agreements and conditions required by this
Agreement to be performed, observed and complied with by it prior to or as of the Closing. 
  
 12. DOCUMENTS TO BE DELIVERED AT CLOSING. 
  
 A. Seller’s Documents. Seller, pursuant to the provisions of this Agreement, shall deliver or cause to be delivered to Purchaser on the Closing Date the following documents: 
  
 (1) A deed in the form attached as Exhibit M, conveying to
Purchaser fee simple title to the Real Estate, duly executed and acknowledged by Seller and in recordable form. 
  
 (2) A blanket bill of sale conveying, selling and transferring to Purchaser all of Seller’s right, title and interest in and to the FF&E and
Supplies, in the form annexed hereto as Exhibit N, duly executed by Seller (it being understood that no inventory of FF&E or Supplies 

  

 19 

 
shall be undertaken by Seller in connection therewith, except as required to comply with the provisions of Section 2.C). 
  
 (3) Subject to the provisions of Section 9.A hereof, an
assignment and assumption of the Service Contracts, Equipment Leases and Rooms Agreements, in the form of Exhibit O annexed hereto, duly executed by Seller and Purchaser. 
  
 (4) An assignment and assumption of the Space Leases and of any Lease Deposits held by Seller in connection therewith and of
the Off-Site Rental Agreement, in the form of Exhibit P annexed hereto, duly executed by Seller and Purchaser, together with Seller’s executed counterparts (or, if not available, copies) thereof and a notice to each of the tenants
thereunder informing them of such assignment and assumption. 
  
 (5) An omnibus assignment of Receivables, Intangibles, Warranties and Licenses in the form of Exhibit Q annexed hereto, duly executed by Seller. 
  
 (6) An assignment and assumption of the Reservations and Reservation Deposits in the form of Exhibit R annexed
hereto, duly executed by Seller and Purchaser. 
  
 (7) Certified
copies of Seller’s organizational documents and such resolutions or consents evidencing the authority of Seller to enter into and close the transactions described herein, as well as the authority of the person(s) executing the documents
described in this Section 12.A on behalf of Seller. 
  
 (8) Such other instruments and documents as may be required by the Title Company to eliminate exceptions for unfiled mechanics’ or materialmen’s liens, for the insolvency of Seller, for the occupancy of any party other than
tenants under the Space Leases and transient lodging guests, and to enable the title company to insure the “gap” between Closing and recordation of the deed, duly executed by Seller. 
  
 (9) Plans and specifications, technical manuals and similar material, for the
Improvements and the FF&E, if any, in Seller’s possession or control. 
  
 (10) An affidavit of an officer of Seller stating that Seller is not a “foreign person” within the meaning of Section 1445 of the Internal Revenue Code of 1954, as amended. 
  
 (11) The original Books, or, at Seller’s option, copies thereof.

  
 (12) The Manager Estoppel, duly executed by Manager and
Seller. 
  
 (13) An assignment and assumption of the Hotel
Management Agreement in the form of Exhibit S annexed hereto (or in such other form as reasonably requested by Manager), duly executed by Seller and Purchaser. 
  
 (14) An assignment of the note and deed of trust evidencing the General Manager’s Mortgage Loan substantially in the
form of Exhibit V annexed hereto, duly executed by Seller and in recordable form. 
  

 20 

 (15) The original note evidencing the General Manager’s Mortgage Loan, together with any such
allonge or endorsement thereof by Seller to Purchaser as may be reasonably requested by Purchaser. 
  
 (16) Such forms and certificates as may be required by applicable law to be filed or delivered in connection with the recording of the deed, including
form FP7, duly executed by the Seller and Purchaser. 
  
 (17) The
Art Work License in the form annexed hereto as Exhibit T, duly executed by the owner of the Art Work and Purchaser, together with any UCC-1 financing statements to be filed in connection therewith. 
  
 (18) A guaranty of Louis Dreyfus in form and substance to be reasonably
agreed upon between Seller and Purchaser prior to Closing, whereby Louis Dreyfus agrees to guaranty the performance of Seller’s obligations under Sections 9.C and 13.C of this Agreement, subject to an overall cap on liability of
$10,000,000. 
  
 (19) Any other documents reasonably required to
effectuate the transactions hereunder. 
  
 B. Purchaser’s
Documents. Purchaser, pursuant to the provisions of this Agreement, shall deliver or cause to be delivered to Seller on the Closing Date the following documents: 
  
 (1) Certified copies of Purchaser’s organizational documents and a duly executed Officer’s Certificate reasonably
acceptable to Seller certifying as to the authority of the persons executing the documents to be delivered by Purchaser on behalf of Purchaser or, in lieu thereof, an opinion of counsel reasonably acceptable to Seller with respect to the foregoing.

  
 (2) All of the documents listed in Section 12.A
above to be executed by Purchaser. 
  
 (3) Any documents required
or permitted under Section 10, subject to the terms and provisions of said Section 10, to be executed by Seller and Purchaser and that are obtained by Purchaser by Closing. 
  
 (4) Any other documents reasonably required to effectuate the transactions
hereunder. 
  
 13. APPORTIONMENTS AND OTHER ECONOMIC
ADJUSTMENTS. 
  
 A. Items to be Apportioned. The
following shall be prorated and apportioned between Seller and Purchaser as of 11:59 P.M. on the day immediately preceding the Closing Date (the “Apportionment Date”), except as otherwise expressly provided to the contrary
below: 
  
 (i) Property Taxes. Real estate
taxes, ad valorem taxes, personal property taxes, special assessments, sewer rents and taxes, and any other governmental 

  

 21 

 
tax or charge levied or assessed against the Property (collectively, the “Property Taxes”), shall be apportioned on the basis of the
respective periods for which each is assessed or imposed. If the Closing Date shall occur either before an assessment is made or a tax rate is fixed for the tax period in which the Closing occurs, the apportionment of such Property Taxes shall be
calculated on the basis of the prior year’s Property Taxes, but, after the assessment and tax rate for the current year are fixed, the apportionment thereof shall be recalculated and Seller or Purchaser, as the case may be, shall promptly pay
to the other the amount determined to be due based on such recalculation. 
  
 (ii) Utilities. The Utilities shall be apportioned (i) by having the utility companies servicing the Property make final meter readings on the Apportionment Date, the payment of which shall be
Seller’s responsibility, or (ii) if such readings cannot be obtained, on the basis of the most recent bills that are available, reasonably adjusted (if necessary) to reflect any changes in occupancy, temperature or other relevant variables
between the respective periods covered by such bills and the most recent relevant at period, to the extent such changes would have a material impact on the amount of the estimated charges for the most recent period for the utility in question. If
the apportionment is not based on an actual current reading, then, upon the taking of a subsequent actual reading, or upon receipt of a subsequent bill, such apportionment shall be recalculated and Seller or Purchaser, as the case may be, shall
promptly pay to the other the amount determined to be due upon such recalculation. Seller shall be reimbursed at Closing for any utility deposits assigned to Purchaser, but all amounts refundable under unassigned or unassignable utility arrangements
shall remain the property of Seller. 
  
 (iii)
Licenses. Prepaid fees or other charges for transferable Licenses, if any, shall be apportioned on the basis of the fiscal period covered by such License, but all amounts refundable under unassigned or unassignable Licenses shall remain
the property of Seller. 
  
 (iv) Service
Contracts, Equipment Leases. Amounts paid or payable under the Service Contracts, Equipment Leases and Off-Site Rental Agreement assigned to Purchaser shall be apportioned on the basis of the period covered by such payments. As regards the
incentive fee payable pursuant to that certain Parking Service Management Agreement (the “Parking Agreement”) dated February 1, 2001, between Seller and Towne Park, Ltd., as most recently amended July 1, 2002, such
incentive fee shall be apportioned based on a reasonable estimate by Seller. However, when the actual amounts payable for such fee are determined, the apportionment of such incentive fee shall be recalculated based on the “garage department
profit” (as such term is used in the Parking Agreement) attributable to the periods prior to and following the Apportionment Date. Based on such recalculation, Seller or Purchaser, as the case may be, shall to the extent necessary, adjust the
amount of the incentive fee apportionment by making an appropriate payment to the other based on such recalculation. 
  
 (v) Insurance Policies. Amounts paid or payable by the owner of the Hotel on account of the insurance policies obtained by Manager
for the Hotel shall be 

  

 22 

 
apportioned on the basis of the period covered by such payments, provided Purchaser continues to utilize such insurance. 
  
 (vi) Space Leases. All rents and other charges paid
or payable to Seller under the Space Leases shall be apportioned as of the Apportionment Date. At the Closing, Seller shall furnish to Purchaser a schedule of all minimum rents and other monthly charges, and an estimate of any percentage rents and
other variable charges under the Space Leases (including the current month), which rents and charges are then due and payable but remain unpaid (in the case of minimum rents and fixed charges) or which have accrued but have not been billed or paid
(in the case of percentage rents and other variable charges) and Seller shall receive a credit for all such unpaid rents and charges accrued (or estimated to have accrued) through the Apportionment Date. If any payments of rent or other fixed
charges are received by Seller after the Closing which are payable to Purchaser by reason of this allocation, such sum shall be promptly paid by Seller to Purchaser. Percentage rents and other variable charges under the Space Leases, which are not
fixed in amount, shall be apportioned based on a reasonable estimate by Seller, but, when the actual amounts are determined, the apportionment thereof shall be recalculated and Seller or Purchaser, as the case may be, shall adjust to the extent
necessary by making an appropriate payment to the other based on such recalculation. 
  
 (vii) Manager Fees. All fees and other charges and reimbursements due under the Hotel Management Agreement shall be apportioned as
of the Apportionment Date. 
  
 (a) Basic
Fee. The Basic Fee (as defined in the Hotel Management Agreement) shall be apportioned as of the Apportionment Date, based on amounts currently payable therefor on an interim basis pursuant to the Hotel Management Agreement. However, when the
actual amounts are determined, the apportionment of such Basic Fee shall be recalculated based on the Hotel Revenue (as defined in the Hotel Management Agreement) attributable to the periods prior to and following the Apportionment Date. Based on
such recalculation, Seller or Purchaser, as the case may be, shall to the extent necessary adjust the amount of the apportionment of the Basic Fee by making an appropriate payment to the other based on such recalculation. 
  
 (b) Incentive Fee. The Incentive Fee (as defined in
the Hotel Management Agreement) shall be apportioned based on the projected Net Cash Flow (as defined in the Hotel Management Agreement) for 2006, as reasonably estimated by Seller. However, when the actual amounts are determined, the apportionment
of such Incentive Fee shall be recalculated based on the Net Cash Flow attributable to the periods prior to and following the Apportionment Date. Based on such recalculation, Seller or Purchaser, as the case may be, shall to the extent necessary
adjust the amount of the apportionment of the Incentive Fee by making an appropriate payment to the other based on such recalculation. 
  
 (viii) Such other items as are provided for in this Agreement or as are normally prorated and adjusted in the sale of a hotel. 

 

 23 

 B. Deposits. Purchaser shall receive a cash credit in an amount equal to the sum of all
Reservation Deposits and Lease Deposits retained by Seller at the Closing. Seller hereby indemnifies and holds Purchaser harmless from and against all claims by and liabilities to any person resulting from Seller’s failure to pay over or credit
to Purchaser any Reservation Deposits or Lease Deposits. Purchaser hereby indemnifies and holds Seller harmless from and against all claims by and liabilities to any person resulting from Purchaser’s failure to honor or return any Reservation
Deposits or Lease Deposits paid or credited to Purchaser at the Closing. 
  
 C. Sales Taxes. All sales, use and occupancy taxes, if any, due or to become due in connection with revenues from the Hotel collected by Seller shall be paid by Seller, and all sales, use and occupancy taxes
due or to become due in connection with revenues collected by Purchaser (including all Receivables purchased by Purchaser, provided that the amount paid to Seller at Closing for the Receivables is net of all such taxes) shall be paid by Purchaser.
Seller and Purchaser shall each indemnify the other from and against any liability for unpaid sales, use or occupancy tax resulting from the indemnifying party’s failure to make the payments required under this Section 13.C. In
addition, Seller shall indemnify Purchaser from and against any liability for unpaid federal or District income and unincorporated business taxes owed by Seller. 
  
 D. Supplies and House Banks. Purchaser shall be obligated to pay to Seller an amount equal to (i) Seller’s
cost for all liquor and beverages in unopened bottles (to the extent permitted by law), food not in process, items held for resale, and new and unused Supplies in unopened containers, and (ii) any House Banks, as provided in
Section 2.C above. 
  
 E. Employee Wages and Other
Compensation. All unpaid wages or salaries and benefits of persons (the “Hotel Employees”) who are employed at the Hotel and under the direction of Manager, (but specifically excluding the engineering staff for the Property
listed on Exhibit W hereto (the “Engineering Staff”) which, as of the Closing Date, shall cease employment at the Hotel) accrued through the Apportionment Date, including any earned (but unused) vacation days accrued through
the Apportionment Date, and any employment taxes due thereon and any retirement plan, medical or other similar deductions therefrom or owed in connection therewith, shall be prorated as of the Apportionment Date. Seller and Purchaser hereby agree
that the Engineering Staff shall, as of the Closing Date cease to be employed at the Hotel and that any salaries, benefits or other payment obligations owed toward, and liabilities in respect of the cessation of employment of, such Engineering Staff
shall be the sole and exclusive responsibility of Seller. The parties hereto acknowledge that Manager is currently seeking bids from third-parties to perform as of or prior to the Closing Date the work at present performed by the Engineering Staff.

  
 F. Reconciliation and Final Payment; Intent of Section.
Seller and Purchaser shall cooperate after Closing to make a final determination of the prorations and adjustments required hereunder as soon as reasonably practicable, but in no event later than ninety (90) days after the Closing Date (except
with respect to any item which is not determinable within such time frame, as to which the time period shall be extended until such item is determinable). Upon the final reconciliation of the prorations and adjustments under this
Section 13, the party which owes the other party any sums hereunder shall pay such party such sums within ten (10) days after the reconciliation thereof. It is the intent of the parties, subject to the provisions hereof , that all
items herein which are subject to apportionment shall result in Seller receiving all of the 

  

 24 

 
economic benefits and burdens of the Hotel with respect to the period prior to the Closing Date, and Purchaser receiving all of the economic benefits and
burdens of the Hotel with respect to the period from and after the Closing Date. 
  
 G. Outstanding Principal of General Manager’s Mortgage Loan. Purchaser shall be obligated to pay to Seller an amount equal to the unpaid principal balance of General Manager’s Mortgage Loan.

  
 H. Survival. The provisions of this
Section 13 shall survive the Closing for a period of one (1) year (except with respect to any item which is not determinable within such time frame, as to which the time period shall be extended until such item is determinable and
with respect to the indemnity contained in Section 13.C, which shall survive the Closing for a period of two (2) years). 
  
 14. ACCOUNTS RECEIVABLE AND PAYABLE. 
  
 A. Accounts Receivable. The Accounts Receivable shall be identified on the Closing Date and assigned to Purchaser, and Seller shall deliver to
Purchaser a list of all such Accounts Receivable. Purchaser is purchasing all Accounts Receivable outstanding as of the Closing Date and Seller shall receive from Purchaser at the Closing for these Accounts Receivable an amount equal to 100% of the
face value of the Accounts Receivable. Purchaser shall be responsible for the payment of all commissions, referral fees and credit card fees relating to the Accounts Receivable and for remitting to the appropriate authorities all sales, use and
occupancy taxes collected as part of the Accounts Receivable, provided that the amount paid to Seller at Closing for the Accounts Receivable is net of all such commissions, fees and taxes. Purchaser shall use its commercially reasonable efforts to
collect any accounts receivable outstanding as of the Closing Date for a period in excess of ninety (90) days (the “Retained Accounts Receivable”) and shall pay on a monthly basis to Seller any such Retained Accounts Receivable
so collected minus a five percent (5%) collection fee to be retained by Purchaser. Any Retained Accounts Receivable that remain uncollected by Purchaser for a period in excess of one hundred twenty (120) days after the Closing Date shall
automatically revert to Seller for collection by Seller and Purchaser shall have no further rights or obligations with respect to such Retained Accounts Receivable. 
  
 B. Accounts Payable. Seller shall deliver to Purchaser at Closing a list of all outstanding trade payables and other
accounts payable with regard to the Hotel relating to any period of time prior to the Apportionment Date, excluding any sums payable under Service Contracts (the “Accounts Payable”), whereupon Purchaser shall assume the obligation
to pay all of the Accounts Payable on or before their respective due dates and Purchaser shall receive a credit against the Purchase Price in an amount equal to the total of such Accounts Payable. Purchaser shall indemnify, defend and hold harmless
Seller from and against any claim, liability, cost or expense (including reasonable attorneys’ fees) relating to the listed Accounts Payable, which obligation shall survive the Closing. Seller shall remain liable for the payment of all Accounts
Payable not specifically assumed by Purchaser pursuant to this Section 14(B), and shall indemnify, defend and hold harmless Purchaser from and against any claim, liability, cost or expense (including reasonable attorneys’ fees)
relating to such unassumed Accounts Payable, and other liabilities relating to contractual obligations, employee or employment matters, or other 

  

 25 

 
uninsured third party claims for injury or damage to persons or property in respect of the Hotel accruing prior to the Closing, which obligation shall
survive the Closing. 
  
 C. Survival. The provisions of
this Section 14 shall survive the Closing for a period of one (1) year. 
  
 15. TRANSACTION COSTS. 
  
 A. Taxes and Recording Fees. Purchaser and Seller shall each pay one-half of all transfer taxes, recordation taxes, sales taxes and/or documentary stamp taxes due in connection with the sale, transfer and conveyance of the Property.
Purchaser shall be solely responsible for all mortgage recording or indebtedness taxes and fees due in connection with Purchaser’s financing. 
  
 B. Title and Survey. Purchaser shall pay all fees, premiums and other charges for Purchaser’s owner’s title report and policy (including
the cost of all endorsements obtained by Purchaser) and all fees and charges for any Survey updates, new survey and UCC searches ordered by Purchaser. Purchaser shall also pay all title insurance premiums and other charges due for any lender’s
title insurance policy issued in connection with Purchaser’s financing. 
  
 C. Third Party Fees. Each party shall pay the fees and disbursements of its respective attorneys, advisors and consultants. 
  
 D. Survival. The provisions of this Section 15 shall survive the closing. 
  
 16. [INTENTIONALLY OMITTED] 
  
 17. SAFES AND BAGGAGE. 
  
 A. Safes. As there are no safes or safe deposit boxes (excluding
in-room safes) available to Hotel guests to which Seller holds duplicate keys or combinations, no Closing Date inventories or verification procedures are required with respect thereto. 
  
 B. Baggage. On the Closing Date representatives of Purchaser and Seller shall take an inventory of all baggage,
valises and trunks checked or left in the care of Seller at the Property. From and after the Closing Date, Purchaser shall be responsible for all baggage listed in said inventory and Purchaser hereby indemnifies and agrees to hold Seller harmless
from any liability therefor. Seller shall remain liable for any negligence or malfeasance with respect to such baggage which occurred prior to the Closing Date as well as for claimed omissions from said inventory, and hereby indemnifies and agrees
to hold Purchaser harmless from any liability therefor. 
  
 C.
Survival. The provisions of this Section 17 shall survive the Closing for a period of one (1) year. 
  

 26 

 18. POST-CLOSING COVENANTS. 
  
 Seller and Purchaser agree that from and after the Closing Date: 
  
 (a) Purchaser will make all Books transferred to Purchaser available for
inspection by Seller and its representatives during business hours on reasonable advance notice. 
  
 (b) Seller and Purchaser shall cooperate in timely making any filing required pursuant to Section 1060 of the Internal Revenue Code or any
regulations promulgated thereunder. 
  
 (c) Seller shall cooperate
with Purchaser, at Purchaser’s sole expense, in enforcing any rights under any unexpired Warranties given by persons other than Seller in connection with the Property. 
  
 The provisions of this Section 18 shall survive the Closing. 
  
 19. BROKERAGE. 
  
 A. Representation. Seller and Purchaser each warrant and represent to the other that it has not dealt or negotiated with any broker in connection
with this transaction other than Eastdil Realty Company, L.L.C. (the “Broker”), who shall be paid a fee by Seller pursuant to a separate agreement. 
  
 B. Indemnity. Seller and Purchaser each hereby agree to indemnify and hold the other harmless from and against any
and all claims, demands, causes of action, loss, costs and expenses (including reasonable attorneys’ fees) or other liability arising from or pertaining to any brokerage commissions, fees, or other compensation, which may be due to any other
brokers or persons retained by them in connection with this transaction, other than the Broker (as to which Seller will solely indemnify). Seller agrees to pay the Broker a commission pursuant to a separate agreement. 
  
 C. Survival. The provisions of this Section 19 shall
survive the Closing. 
  
 20. TAX REDUCTION PROCEEDINGS.

  
 During the term of this Agreement, Seller may institute and/or
continue any proceeding or proceedings for the reduction of the assessed valuation of the Property or any portion thereof for real estate taxes, or of any rate applicable thereto. Seller shall not settle or compromise any pending proceedings
concerning the taxes for the period in which the Closing occurs without Purchaser’s prior consent, which consent shall not be unreasonably withheld. The net amount of any tax refunds or credits (after deduction of all costs and expenses
thereof, including legal fees) with respect to any portion of the Property for a tax period in which the Closing occurs, shall be apportioned between Seller and Purchaser as of the Apportionment Date and promptly paid. All refunds or credits for
prior tax years belong solely to Seller. The provisions of this Section 20 shall survive the Closing. 
  

 27 

 21. DAMAGE AND DESTRUCTION. 
  
 If, subsequent to the date hereof but prior to the Closing Date, all or any part of the Property is damaged by fire or other
casualty, the following shall apply: 
  
 (a) If the damage or
destruction is of a material part of any Property, Seller shall notify Purchaser of such fact and Seller and Purchaser shall each have the option of terminating this Agreement by notice given to the other party, in which event Purchaser shall be
entitled to a return of the Deposit, together with any interest accrued thereon, whereupon this Agreement shall terminate and neither party hereto shall have any further obligations hereunder except for those expressly stated to survive the
termination of this Agreement. If neither Seller nor Purchaser elects to terminate this Agreement, Seller shall, at its option, either (i) proceed to repair the damage and restore the Property to the same condition as existed immediately prior
to the casualty, in which event Seller shall be entitled to adjourn the Closing Date for a period of time not to exceed one hundred eighty (180) days for the purpose of making such repairs and restoration, or (ii) turn over to Purchaser on
the Closing Date an amount equal to the net amount of any casualty insurance proceeds collected by Seller on account of said damage or destruction, and to the extent not so collected, to assign to Purchaser the right to receive and settle same, in
either case less any expense actually incurred by Seller in connection with any emergency repair by reason of such damage or destruction, provided that if the net amount of insurance proceeds to be turned over to Purchaser is not sufficient to pay
for the cost of repairing and restoring as provided above (based upon the reasonable estimate of Seller’s architect or contractor), Purchaser shall receive a credit against the Purchase Price in the amount of such reasonably estimated
shortfall. For purposes hereof, a “material part” shall mean any damage or destruction, the aggregate cost of repair or replacement of which exceeds twenty percent (20%) of the Purchase Price of the Property. 
  
 (b) If there is damage to or destruction by fire or other casualty of an
immaterial part of the Property, neither party shall have the right to exclude such Property from this transaction and the parties shall nonetheless consummate this transaction as to such Property in accordance with this Agreement, without any
abatement of the Purchase Price or any liability or obligation on the part of Seller by reason of said destruction or damage, provided, however, that in such event, Seller shall notify Purchaser of such fact and shall, at Seller’s option,
either (i) proceed to repair the damage and restore the Property to the same condition as existed immediately prior to the casualty, in which event Seller shall be entitled to adjourn the Closing Date for a period of time not to exceed one
hundred eighty (180) days for the purpose of making such repairs and restoration, or (ii) turn over to Purchaser on the Closing Date an amount equal to the net amount of any casualty insurance proceeds collected by Seller on account of
said damage or destruction, and to the extent not so collected, to assign to Purchaser the right to receive and settle same, in either case less any expense actually incurred by Seller in connection with any emergency repair by reason of such damage
or destruction, provided that if the net amount of insurance proceeds to be turned over to Purchaser is not sufficient to pay for the cost of repairing and restoring as provided above (based upon the reasonable estimate of Seller’s architect or
contractor), Purchaser shall receive a credit against the Purchase Price in the amount of such reasonably estimated shortfall. 
  

 28 

 22. CONDEMNATION. 
  
 If, subsequent to the date hereof but prior to the Closing Date, all or any portion of the Property is taken by eminent
domain or in the event of a change of legal grade at a Property caused by an act of governmental authority, Seller shall promptly give Purchaser written notice thereof, and the following shall apply: 
  
 (a) If a material part of the Property is taken, Seller or Purchaser may,
within ten (10) days after Purchaser’s receipt of Seller’s notice, by written notice to the other, elect to terminate this Agreement by notice given to the other party, in which event Purchaser shall be entitled to a return of the
Deposit, together with any interest accrued thereon, whereupon this Agreement shall terminate and neither party hereto shall have any further obligations hereunder except for those expressly stated to survive the termination of this Agreement.

  
 (b) If a material part of the Property is taken but neither
Seller nor Purchaser elects to terminate this Agreement pursuant to paragraph (a) above, or if an immaterial part of the Property is taken or in the event of a change of legal grade caused by an act of governmental authority, neither party
shall have any right to terminate this Agreement, and the parties shall nonetheless proceed to the Closing in accordance with this Agreement, without any abatement of the Purchase Price or any liability or obligation on the part of Seller by reason
of such taking, provided, however, that Seller shall, at the Closing, (i) assign and turn over, and Purchaser shall be entitled to receive and keep, the proceeds of any award or other proceeds of such taking which may have been collected by
Seller as a result of such taking, less any portion thereof applied to the cost of emergency repairs made by Seller prior to Closing, or (ii) if no award or other proceeds shall have been collected, deliver to Purchaser an assignment of
Seller’s right to any such award or other proceeds which may be payable to Seller as a result of such taking, less an amount equal to the cost of any emergency repairs made by Seller prior to Closing, which amount shall be paid to Seller by
Purchaser at Closing. 
  
 (c) For the purposes hereof, a
“material part” shall be deemed to mean any taking (i) which causes a reduction in the size of any of the buildings comprising the Improvements or materially interferes with the present use and operation of any of such
buildings, or (ii) which reduces the total area of the Land so that the land area available for parking is insufficient to service the Hotel thereon at maximum capacity or to provide the number of parking spaces required under current law
(considering any variance to which the Hotel is entitled), or (iii) which results in the elimination of the sole or any required means of legal ingress and/or egress from the Property to public roads, no comparable, convenient, legal substitute
ingress and/or egress being available. 
  

 29 

 23. NOTICES. 
  
 All notices, demands, requests or other communications (“notices”) required to be given or which may be
given hereunder shall be in writing and shall be sent by U.S. Express Mail, Fed Ex, UPS or any similar national overnight receipted courier service, addressed as follows: 
  

			
		
	If to Seller at:	  	 c/o Louis Dreyfus Property Group
 20 Westport
Road
 Wilton, Connecticut 06897
 Attention: David
Shepherd

		
	With copies to:	  	 Paul, Hastings, Janofsky & Walker LLP
 75 East 55th
Street
 New York, New York 10022
 Attention: Douglas A.
Raelson

		
	If to Purchaser, at:	  	 77 West Wacker Drive, Suite 4600
 Chicago, IL
60601
 Attention: General Counsel

		
	With copies to:	  	 Perkins Coie LLP
 131 South Dearborn Street, Suite
1700
 Chicago, IL 60603
 Attn: Phillip Gordon,
Esq.

  
 or to such other address or addresses
as the parties may designate from time to time by notice given in accordance with this Section 23. Notices may be given by counsel to the respective parties hereto with the same force and effect as if given by the parties themselves. Any
notice shall be deemed given and effective as of the date of receipt. The inability to deliver because of changed address of which no notice was given, or rejection or other refusal to accept any notice shall be deemed to be receipt of the notice as
of the date of such attempt to deliver or rejection or refusal to accept. 
  
 24. DEFAULT, REMEDIES. 
  
 A. PURCHASER DEFAULT. IF (I) PURCHASER SHALL FAIL TO CONSUMMATE THE PURCHASE OF THE PROPERTY FOR ANY REASON OTHER THAN SELLER’S DEFAULT, THE CONDITIONS TO PURCHASER’S OBLIGATIONS SET FORTH IN SECTION 11 HAVING
BEEN SATISFIED OR WAIVED, OR (II) IF PURCHASER SHALL OTHERWISE FAIL IN ANY MATERIAL RESPECT TO PERFORM ANY OF ITS MATERIAL OBLIGATIONS OR AGREEMENTS AS AND WHEN REQUIRED HEREUNDER, THEN SELLER SHALL HAVE THE RIGHT, AS SELLER’S SOLE AND
EXCLUSIVE REMEDY, TO TERMINATE THIS AGREEMENT ON NOTICE TO PURCHASER AND ESCROW AGENT AND TO RECEIVE, DRAW UPON AND KEEP THE DEPOSIT, AND THE PROCEEDS THEREOF, WITH ANY INTEREST EARNED THEREON, AS AND FOR LIQUIDATED DAMAGES AND FURTHER CONSIDERATION
FOR ENTERING INTO THIS AGREEMENT, AND, THEREUPON, THIS AGREEMENT SHALL BECOME NULL AND VOID AND NEITHER PARTY TO THIS AGREEMENT SHALL HAVE ANY FURTHER RIGHTS OR OBLIGATIONS HEREUNDER, EXCEPT FOR THOSE EXPRESSLY STATED TO SURVIVE THE TERMINATION
HEREUNDER, IT BEING THE UNDERSTANDING AND AGREEMENT OF THE PARTIES HERETO THAT THE ACTUAL DAMAGES, COSTS AND EXPENSES SUSTAINED BY SELLER IN THE EVENT OF PURCHASER’S DEFAULT ARE DIFFICULT, IF NOT IMPOSSIBLE, TO 

  

 30 

 
ASCERTAIN. ESCROW AGENT SHALL IMMEDIATELY DELIVER THE DEPOSIT (AND ANY PROCEEDS THEREOF OR INTEREST THEREON) TO SELLER UPON RECEIPT OF SUCH NOTICE OF
TERMINATION. NOTWITHSTANDING THE FOREGOING, IN THE EVENT OF ANY DEFAULT BY PURCHASER UNDER THIS AGREEMENT DUE TO A BREACH AFTER CLOSING OR ANY TERMINATION HEREOF OF ANY COVENANT, REPRESENTATION, INDEMNITY OR OTHER OBLIGATION WHICH SURVIVES THE
CLOSING OR ANY TERMINATION HEREOF, SELLER SHALL HAVE ANY AND ALL RIGHTS AND REMEDIES AVAILABLE AT LAW OR IN EQUITY BY REASON OF SUCH DEFAULT. 
  
 B. SELLER DEFAULT. IF (I) SELLER SHALL FAIL TO CONSUMMATE THE SALE OF THE PROPERTY FOR ANY REASON OTHER THAN PURCHASER’S DEFAULT, THE
CONDITIONS TO SELLER’S OBLIGATIONS SET FORTH IN SECTION 11 HAVING BEEN SATISFIED OR WAIVED, OR (II) IF SELLER SHALL OTHERWISE FAIL IN ANY MATERIAL RESPECT TO PERFORM ANY OF ITS MATERIAL OBLIGATIONS OR AGREEMENTS AS AND WHEN REQUIRED
HEREUNDER, OR (III) IF ANY REPRESENTATION OR WARRANTY MADE BY SELLER HEREIN SHALL HAVE BEEN MATERIALLY INCORRECT WHEN MADE OR WHEN RATIFIED AT CLOSING, THEN PURCHASER SHALL HAVE THE RIGHT, AS PURCHASER’S SOLE AND EXCLUSIVE REMEDY, TO PURSUE
EITHER ONE OF THE FOLLOWING: (X) TO TERMINATE THIS AGREEMENT BY NOTICE TO SELLER AND ESCROW AGENT WHEREUPON THE DEPOSIT (INCLUDING ANY PROCEEDS THEREOF OR INTEREST THEREON) SHALL BE RETURNED TO PURCHASER BY ESCROW AGENT; OR (Y) SEEK
SPECIFIC PERFORMANCE OF THIS AGREEMENT, PROVIDED THAT ANY ACTION OR PROCEEDING SEEKING SUCH RELIEF IS COMMENCED NO LATER THAN THIRTY (30) DAYS AFTER THE CONTEMPLATED CLOSING DATE. NOTWITHSTANDING THE FOREGOING, IN THE EVENT OF ANY DEFAULT BY
SELLER UNDER THIS AGREEMENT DUE TO A BREACH AFTER CLOSING OR ANY TERMINATION HEREOF OF ANY COVENANT, REPRESENTATION, INDEMNITY OR OTHER OBLIGATION WHICH SURVIVES THE CLOSING OR ANY TERMINATION HEREOF, PURCHASER SHALL HAVE ANY AND ALL RIGHTS AND
REMEDIES AVAILABLE AT LAW OR IN EQUITY BY REASON OF SUCH DEFAULT. 
  
 25. ENTIRE AGREEMENT. 
  
 This Agreement contains
all of the terms agreed upon between the parties with respect to the subject matter hereof. 
  
 26. AMENDMENTS. 
  
 This
Agreement may not be changed, modified or terminated, except by an instrument executed by all of the parties hereto. 
  
 27. WAIVER. 
  
 No provisions or conditions of this Agreement may be waived by either party hereto except in writing. No waiver by either Seller or Purchaser of any
failure or refusal of the 

  

 31 

 
other party to comply with its obligations hereunder shall be deemed a waiver of any other or subsequent failure or refusal to so comply by such other party.

  
 28. PARTIAL INVALIDITY. 
  
 If any term or provision of this Agreement or the application thereof to any
person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable,
shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 
  
 29. SECTION HEADINGS. 
  
 The headings of the various sections of this Agreement have been inserted only for the purposes of convenience, and are not part of this Agreement and
shall not be deemed in any manner to modify, explain, expand or restrict any of the provisions of this Agreement. 
  
 30. GOVERNING LAW. 
  
 This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York applicable to contracts made and to be performed
entirely within the State of New York. 
  
 31.
JURISDICTION. 
  
 Any action or proceeding concerning this
Agreement shall be commenced only in a state or federal court of competent jurisdiction located in the State of New York, County of New York, and the parties hereby expressly and irrevocably submit themselves to the jurisdiction of said courts and
waive any objections they may now or hereafter have based on venue and/or forum non-conveniens. In any legal action or proceeding, the parties hereby waive their right to trial by a jury. 
  
 32. ATTORNEYS’ FEES, ACTIONS. 
  
 Should either party employ an attorney or attorneys to enforce any of the provisions hereof or to protect its interest in
any manner arising under this Agreement, the non-prevailing party in any such action or proceeding (the finality of which is not legally contested) shall pay to the prevailing party all costs, damages, fees and expenses, including reasonable
attorneys’ fees, expended or incurred in connection therewith. 
  
 33. FURTHER ASSURANCES. 
  
 Seller and Purchaser
will do, execute, acknowledge and deliver all and every such further acts, deeds, conveyances, assignments, notices, transfers and assurances as may be reasonably required by any party hereto or by the Title Company in order to consummate the
transactions contemplated by this Agreement. However, the foregoing shall not be deemed to (i) require Seller or Purchaser to expend a sum of money which they could not reasonably have 

  

 32 

 
anticipated on the date of execution of this Agreement, or (ii) require Seller or Purchaser to incur any liability beyond that expressly provided for in
this Agreement. 
  
 34. SUCCESSORS AND ASSIGNS. 

 
 This Agreement and all covenants, representations, warranties and
indemnities herein shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
  
 35. COUNTERPARTS. 
  
 This Agreement may be executed in several counterparts, each of which when so executed and delivered shall be deemed an original and all of which taken
together shall constitute but one and the same instrument. Executed counterparts may be delivered by facsimile or other means of electronic transmission. 
  
 36. ASSIGNMENT. 
  
 This Agreement may not be assigned by Purchaser without the prior written consent of Seller, which Seller may grant or deny in its sole and absolute
discretion; provided, however, that Purchaser shall be permitted to assign this Agreement without the prior consent of Seller to any entity wholly owned and controlled by Purchaser or that is under common control with Purchaser, provided
(i) notice thereof is given to Seller at least ten (10) business days prior to the Closing, (ii) Purchaser and its assignee enter into a written assignment and assumption agreement in which the assignee assumes all of Purchaser’s
obligations hereunder, and (iii) a copy of such assignment and assumption agreement is delivered to Seller. In the event of any such permitted assignment, any references in this Agreement to Purchaser shall be construed to mean the assignee to
which the Purchaser named herein shall have assigned its rights under this Agreement, and which shall have assumed, all of the obligations of the Purchaser under this Agreement. Notwithstanding the assumption of this Agreement by such assignee, the
Purchaser named herein shall remain liable for all of the Purchaser’s obligations hereunder and shall not be deemed to be released as a result of such permitted assignment and assumption. 
  
 37. SURVIVAL. 
  
 Except as may be expressly set forth herein, none of the covenants,
representations, warranties and indemnities of either party hereto shall survive the Closing or the delivery of the deed. Provided that notice of such claim as may give rise to liability under any indemnity contained herein is given prior to the
expiration of the period set forth for such indemnity’s lapse, the liability relating to such notice and indemnity shall continue until resolved or finally adjudicated. 
  
 38. LIMITATION ON LIABILITY. 
  

A. No Personal Liability. No officer, director, member, partner, shareholder, employee, agent or other representative of either Seller or
Purchaser shall have any personal liability under this Agreement. 
  

 33 

 B. Limits of Seller’s Liability. Seller shall have no liability for the breach of any
representation, warranty, covenant, indemnity or other obligation expressly stated to survive the Closing hereunder (collectively, “Seller’s Post-Closing Obligations”), unless and until the aggregate amount of Purchaser’s
out-of-pocket damages and expenses directly resulting from such breaches shall exceed $100,000. Furthermore, Seller’s aggregate liability under this Agreement for the breach of any and all of Seller’s Post-Closing Obligations, including
but not limited to those post-closing obligations set forth in Sections 7, 10, 13, 14, 15, 17, 18, 19 and 20, but specifically excluding fraud or intentional misconduct, shall in no event exceed $10,000,000. 
  
 39. CONFIDENTIALITY. 
  
 A. Press Releases. Neither Seller nor Purchaser nor any Affiliate of
either (as used in this Agreement, “Affiliate” shall have the meaning ascribed to it in Rule 12b-2 of the General Rules and Regulations under the Securities and Exchange Act of 1934, as amended, and, when used in connection with
Seller or Purchaser shall include each officer, director, member or partner thereof) shall issue any press release nor otherwise make public any information with respect to this Agreement or the transactions contemplated hereby prior to the Closing
Date, without the prior written consent of the other. Notwithstanding the foregoing, either party or its Affiliates may issue press releases and may refer to this Agreement and the transactions contemplated hereby in any filing pursuant to
securities laws or stock exchange listing obligations or as required by law or advised by counsel to be in accordance with law, provided that, with respect to any press release, the other party has been provided with an opportunity to review and
comment upon such release, although any changes to such release proposed by such other party shall be made in the sole discretion of the party issuing the press release. No press release shall contain any inaccurate or misleading information. After
the Closing has occurred hereunder, there shall be no restrictions on the issuance of press releases by any party hereunder. 
  
 B. Confidentiality. Until such time as a press release has been issued, and then only to the extent of the information disclosed in such press
release, neither Seller nor Purchaser shall discuss or disclose the existence of this transaction, the terms of this Agreement or the identity of the parties hereto with any other person or entity, including Hotel Employees, except for those
employees, prospective lenders, advisors, attorneys, consultants and other professionals required to implement the terms of this Agreement or to assist in Purchaser’s due diligence and who have agreed to maintain the confidentiality of the
transaction and the information they receive, and except to the extent required by law or advised by counsel to be in accordance with law. Except to the extent otherwise provided herein, required by law or advised by counsel to be in accordance with
law, until the consummation of the transactions contemplated by this Agreement, Purchaser shall hold, and shall cause its Affiliates to hold, the Due Diligence Materials confidential. The Due Diligence Materials shall not be disclosed, discussed or
made known to any person without the prior written consent of the Seller, except to the employees, officers or directors of Purchaser or any of its Affiliates, to Purchaser’s prospective lenders and their counsel, to any prospective hotel
franchisors, any marketing company employed to do feasibility studies, or any investment banking, accounting, legal or other professional advisers, or to any environmental or engineering consultants with whom Purchaser desires to consult in
connection with the proposed transaction, and provided that all such persons have agreed to maintain the confidentiality of the transaction and of the information they receive. 
  

 34 

 C. Survival. The provisions of this Section 39 shall survive the Closing or the
termination of this Agreement. 
  
 40. TIME PERIODS.

  
 If the final day of any time period or limitation set out in
any provision of this Agreement falls on a Saturday, Sunday or legal holiday under the laws of the State of New York or of the Federal government, then and in such event the time of such period shall be extended to the next day which is not a
Saturday, Sunday or legal holiday. As used herein, the term “business days” shall mean any day which is not a Saturday, Sunday or legal holiday in the State of New York. 
  
 41. SOIL CONDITION. 
  
 In accordance with the provisions of §42-608 of the District of Columbia Code, according to the “Soil Survey of the District of Columbia”
(prepared by the United States Department of Agriculture, Soil Conservation Service, and issued July 1976) at page 50 and map sheet 9 at the back of the publication, the condition of the soil of the Land is that of “Urban Land” (Ub).
Further information concerning the characteristic of the soil and the Land may be obtained from a soil testing laboratory, the District of Columbia Department of Environmental Services or the Soil Conservation Service of the Department of
Agriculture. 
  

 35 

 IN WITNESS WHEREOF, Seller and Purchaser have caused this Agreement to be executed the day and year first
above written. 
  

					
	 SELLER:

	
	LD GEORGETOWN PLAZA ASSOCIATES LLC,
a Delaware limited liability company
		
	 By:
	 	LD Property Management Inc., its manager
			
	 	 	 By:
	 	 /s/ David Shepherd

	 	 	 	 	Name: David Shepherd
	 	 	 	 	Title:   Vice President
	
	PURCHASER:
	
	SHC WASHINGTON, L.L.C., a Delaware limited liability company
		
	 By:
	 	 /s/ James E. Mead

	 	 	Name: James E. Mead
	 	 	 Title:   Executive Vice President
             and Chief Financial Officer

 EXHIBIT A 
  

Legal Description of the Land 
  
 Lots 30 and 31 in the subdivision made by Georgetown Plaza Associates in Square 1195, as per plat recorded in Liber 165 at folio 142 of the Records of the Office of the
Surveyor for the District of Columbia. 
  
 ALSO, Part of Lot 1 in Square 25 in
Holmead’s Addition to Georgetown, now known as Square 1195, in the City of Washington, also part of Lot 12 in Square 25, in Deakins, Lee and Casanave’s Addition to Georgetown, now known as Square 1195, in the City of Washington, described
in accordance with a Plat of Computation recorded in Survey Book 172 at page 72, of the Records of the Office of the Surveyor of the District of Columbia, as follows: 
  
 BEGINNING for the same at a point in the Southerly line at Pennsylvania Avenue Northwest, distant Southeasterly 63.10 feet from the
Southeast corner of 29th Street and Pennsylvania Avenue; and running thence Southeasterly along said line of Pennsylvania Avenue, 13.34 feet to the center line of the party wall between premises 2822 and 2820 Pennsylvania Avenue; thence South 00
degrees 15 minutes West along said center line and a prolongation thereof, 58.96 feet; thence West, 12.50 feet to intersect a South prolongation of the center line of the party wall between premises 2822 and 2822 1/2 Pennsylvania Avenue; thence
North 00 degrees 15 minutes East along said prolongation and said center line of said party wall 63.67 feet to the place of beginning. 
  
 NOTE: At the date hereof the above described land is designated on the Records of the Assessor of the District of Columbia for taxation purposes as Lot 815 in Square
1195. 
  

 A-1 

 EXHIBIT B 
  

Excluded FF&E 
  

 B-1 

 EXHIBIT C 
  

Equipment Leases 
  

 C-1 

 EXHIBIT D 
  

Service Contracts 
  

 D-1 

 EXHIBIT E 
  

Space Leases and Lease Deposits 
  

	1.	Lease dated October 22, 1996 between Georgetown Plaza Associates and Guarisco Gallery, Ltd. 

  

	 	a)	First Amendment to Retail Lease dated December 18, 2002. 

  
 Note: no security deposit. 
  

	2.	Lease dated March 30, 2005 between Georgetown Plaza Associates and Yannick Lubiato and Corrine Lubiato. 

  
 Note: Security Deposit of $28,200.00. 
  

	3.	Lease dated February 5, 1992 between Georgetown Plaza Associates and George and Denise Ozturk. 

  

	 	a)	First Amendment to Retail Lease dated July 16, 1997. 

  

	 	b)	Second Amendment to Retail Lease dated May 19, 2005. 

  
 Note: no security deposit. 
  

	4.	Lease dated November 6, 1996 between Georgetown Plaza Associates and Pardoe Real Estate, Inc. 

  

	 	a)	Tenant/Owner Agreement—Revision #4 dated October 24, 1997. 

  

	 	b)	Letter dated December 15, 1998 notifying Landlord of the sale and transfer of Pardoe Real Estate, Inc. to NRT, Inc. 

  

	 	c)	Letter Agreement dated March 14, 2002 for temporary signage and notification of name change. 

  

	 	d)	Letter dated April 18, 2002 with trade name change from NRT, Inc. to NRT Mid-Atlantic, Inc. dba Coldwell Banker Residential Brokerage. 

  

	 	e)	Trade Name Change Amendment dated July 19, 2002. 

  
 Note: no security deposit. 
  

	5.	Lease dated April 24, 2001 between Georgetown Plaza Associates and SNH Designe Corp. 

  
 Note: no security deposit. 
  

	6.	Lease dated April 24, 2001 between Georgetown Plaza Associates and SNP, Inc. 

  
 Note: no security deposit. 
  

	7.	Lease dated 2000 between Georgetown Plaza Associates and Kalama Beach Corporation II, as modified by the revised pages attached to the letter from tenant to landlord dated
March 19, 2001, showing tenant as Kalama Gifts and Sundries LLC (which has been designated the April 2, 2001 Amendment). 

  
 Note: [no security deposit.] 
  

 E-1 

 EXHIBIT F 
  

Rooms Agreements 
  

 F-1 

 EXHIBIT G 
  

Trade Names and Marks 
  
 None. 
  

 G-1 

 EXHIBIT H 
  

Escrow Agreement 
  
 ESCROW AGREEMENT 
  
 COMMONWEALTH LAND TITLE INSURANCE COMPANY, located at 1015 15th Street, N.W., Suite 300, Washington, D.C. 20005, hereinafter referred to as “Escrow
Holder”, hereby agrees to act as escrow agent in connection with the $10,000,000.00 (the “Escrow Deposit”) to be wired to Escrow Holder’s trust account described on Exhibit A pursuant to a certain Purchase and
Sale Agreement by and between LD GEORGETOWN PLAZA ASSOCIATES LLC, with an address c/o Louis Dreyfus Property Group, 20 Westport Road, Wilton, CT 06897, as Seller, and SHC WASHINGTON, L.L.C., a Delaware limited liability company, with an address at
77 West Wacker Drive, Suite 4600, Chicago, IL 60601, as Purchaser, dated January     , 2006 (the “Purchase Agreement”) for the sale of the property described in the Purchase Agreement. 
  
 Escrow Holder agrees to hold such funds in escrow in accordance with the terms and provisions
of this Agreement, until the following conditions are met: 
  
 Upon receipt of an
executed W-9 Form from Purchaser stating Purchaser’s Federal Tax Identification Number
                                , the Escrow Deposit shall be placed in an
interest-bearing account (the “Account”) and all interest accrued thereon shall belong to the party entitled to receive the Escrow Deposit. 
  

	1.	Escrow Holder is acting solely as a stakeholder hereunder. Escrow Holder’s duties shall be determined solely by the express provisions of this Agreement and are purely
ministerial in nature. Escrow Holder shall disburse the Escrow Deposit pursuant to written instructions of the parties hereto. Notwithstanding the foregoing, if either Seller or Purchaser notifies Escrow Holder that the other party is in default
under the Purchase Agreement (a “Notice of Default”) and demands that the Escrow Deposit be delivered to it, Escrow Holder shall deliver the Escrow Deposit to the demanding party on the fifth (5th) business day after receipt of
such Notice of Default, unless the other party notifies Escrow Holder of its objection to such delivery prior thereto. Any Notice of Default given to Escrow Holder shall also be given simultaneously to the party claimed to be in default in
accordance with paragraph 5 below. If a dispute arises between the parties regarding the disposition of the Escrow Deposit, Escrow Holder shall continue to hold the Escrow Deposit until it has received joint instructions from Seller and Purchaser or
until otherwise instructed pursuant to a court order. 

  

	2.	 If a dispute arises and proceedings regarding the disposition of the Escrow Deposit are not begun and diligently continued, Escrow Holder may, but is not required
to take such affirmative steps as Escrow Holder may, at its option, elect in order to terminate its duties as escrow agent, including retaining counsel and bringing an appropriate action or proceeding for leave to deposit the Escrow Deposit with a
court of competent jurisdiction and commencing an action for interpleader (Purchaser and Seller agreeing that (i) such commencement of an action for interpleader shall terminate Escrow Holder’s duties hereunder and (ii) Purchaser and
Seller are jointly and severally responsible for any and 

  

 H-1 

	 	 
all fees incurred by Escrow Holder (including attorney’s fees) in the event Escrow Holder is required to commence an action for interpleader). Upon
delivery of the funds as provided herein, Escrow Holder shall be fully relieved and discharged of any further responsibility and liability hereunder. 

  

	3.	Escrow Holder shall not be liable for, and the parties hereto each release Escrow Holder from, any mistake of fact or error of judgment or any acts or omissions of any kind unless
caused by Escrow Holder’s willful misconduct or gross negligence. Escrow Holder shall be entitled to rely on any instrument or signature believed by it to be genuine and may assume that any person purporting to give any writing, notice, or
instruction in connection with this Agreement is duly authorized to do so by the party on whose behalf such writing, notice, or instruction is given. Upon delivery of the funds as provided herein, Escrow Holder shall be fully relieved and discharged
of any further responsibility and liability hereunder. 

  

	4.	The undersigned hereby jointly and severally indemnify Escrow Holder for and hold Escrow Holder harmless against any loss, liability, or expense incurred by Escrow Holder that
arises out of or is in connection with the acceptance of or the performance of its duties under this Agreement, as well as the costs and expenses, including reasonable attorneys’ fees and disbursements, of defending against any claim or
liability arising under this Agreement or of commencing any action or proceeding authorized under this Agreement or of otherwise pursuing Escrow Holder’s rights under this Agreement, unless caused by Escrow Agent’s willful misconduct or
gross negligence. 

  

	5.	Any notice to any of the parties hereto shall be in writing and either delivered by hand or overnight receipted delivery by U.S. Express Mail, Fed Ex, UPS, or other nationally
recognized overnight delivery service, to the parties at the addresses set forth above, with a copy to the respective attorneys for Seller and Purchaser at the addresses set forth below. Notices to Escrow Holder shall be addressed to the attention
of David P. Nelson. Each notice shall be deemed given (i) on the same day, if delivered by hand, or (ii) on the following business day, if sent by overnight delivery. Notices may be given on behalf of Seller and Purchaser by their
respective counsel listed below. 

  

			
	 Attorney for Seller:
	  	Paul, Hastings, Janofsky & Walker LLP
	 	  	 75 East 55th Street

	 	  	 New York, New York 10022

	 	  	 Attn: Douglas A. Raelson, Esq.

	 	  	 Telephone No.: (212) 318-6850

	 	  	 Telecopy No.: (212) 230-7644

		
	 Attorney for Purchaser:
	  	 Perkins Coie LLP

	 	  	 131 South Dearborn Street, Suite 1700
 Chicago, IL 60603

	 	  	 Attn: Phillip Gordon, Esq.

	 	  	 Telephone No.: (312) 324-8600

	 	  	 Telecopy No.: (312) 324-9600

  

 H-2 

	6.	In the event of any discrepancy between the provisions of this Escrow Agreement and the provisions of the Purchase Agreement, the provisions of this Escrow Agreement shall control.
This Agreement shall be binding on the parties hereto and their respective successors and assigns. This Agreement shall be governed by and construed in accordance with New York law. 

  
 Dated: As of January     , 2006

  

			
	 COMMONWEALTH LAND TITLE 
 INSURANCE
COMPANY, AS ESCROW
 HOLDER

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

 H-3 

													
	 Accepted and Approved
	 	 	 	 Accepted and Approved

			
	 Seller:
	 	 	 	 Purchaser:

			
	 LD GEORGETOWN PLAZA ASSOCIATES LLC
	 	 	 	 SHC WASHINGTON, L.L.C.

					
	 By:
	 	 LD Property Management Inc., its manager
	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 Name:

	 	 	 By:
	 	 	 	 	 	 	 	 	 	 Title:

	 	 	 	 	 Name:
	 	 David Shepherd
	 	 	 	 	 	 
	 	 	 	 	 Title:
	 	 Vice President
	 	 	 	 	 	 

  

 H-4 

 EXHIBIT A 
  

WIRE INSTRUCTIONS 
  

			
	BANK NAME:	  	 Bank of America, N.A.
 1850 Gateway Boulevard

Concord, CA 94524

		
	ABA NO:	  	0260-0959-3
		
	ACCOUNT NAME:	  	 LANDAMERICA FINANCIAL GROUP, INC./
 COMMERCIAL
SETTLEMENTS, INC. ESCROW ACCOUNT

		
	ACCOUNT NO.:	  	4126177525
		
	RE:	  	 Advise:             David Nelson
 File:                   10808987/05-002260

  

 H-5 

 EXHIBIT I 
  

Survey 
  
 ALTA/ACSM Land Title Survey, Lots 30 & 31 Square 1195, Recorded in the Surveyor’s Office of the District of Columbia in Book 165 Page 142 and Assessment Lot 815, Instrument 21906 Northwest, Washington,
District of Columbia, prepared by Fowler Associates, Inc. as of December 1986 and last updated and recertified April 1, 2004 by James M. Fowler, Jr. 
  

 I-1 

 EXHIBIT J 
  

Permitted Encumbrances 
  

	(1)	Public space (vault) rental subsequent to June 30, 2006, not yet a lien. 

  

	(2)	Rights of way for sewers granted to the District of Columbia by instruments recorded April 1, 1909 in Liber 3210 at pages 308, 309 and 312 among the land records of the
District of Columbia. 

  

	(3)	Deed of Easement for pedestrian ingress and egress recorded July 28, 1981 as Instrument No. 24206 among the land records of the District of Columbia.

  

	(4)	Rights reserved to the District of Columbia to operate, maintain or reconstruct utilities located on the portion of 28th Street closed as shown in Liber No. 132 at folio 138 of
the Records of the Office of the Surveyor for the District of Columbia among the land records of the District of Columbia. 

  

 J-1 

 EXHIBIT K 
  

Form of Manager Estoppel 
  
 ESTOPPEL CERTIFICATE 
  
                     , 2006 
  

	To:	SHC Washington, L.L.C. 

  

	Re:	Hotel: Four Seasons Hotel Washington 

 Owner:
LD Georgetown Plaza Associates LLC, a Delaware limited liability company, successor by conversion to Georgetown Plaza Associates, a New York general partnership 
 Operator: Four Seasons Hotels Limited 
 Second Amended and Restated Hotel Management Agreement dated
as of January 1, 1997 
  
 SHC Washington, L.L.C., a Delaware
limited liability company (the “Purchaser”), has requested that the undersigned, Four Seasons Hotels Limited, a corporation amalgamated under the laws of the Province of Ontario, Canada (“Operator”), as the operator
under that certain Second Amended and Restated Hotel Management Agreement dated as of January 1, 1997 as amended by a letter dated February 10, 2005 (the “Management Agreement”), by and between Operator and Georgetown
Plaza Associates, a New York general partnership and predecessor-in-interest to LD Georgetown Plaza Associates LLC, a Delaware limited liability company (“Owner”), certify to Purchaser certain matters as set forth below. All
capitalized terms used but not otherwise defined herein shall be defined as provided in the Management Agreement. 
  
 The following statements are made with the knowledge that Purchaser and its successors and permitted assigns under the Purchase and Sale Agreement dated
January                     , 2006 between Owner and Purchaser may rely on them in connection with the purchase of the Project. Operator, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby certifies to Purchaser that the following statements are true and correct as of the date hereof and agrees with Purchaser as follows: 

 

	 	1.	The Management Agreement is in full force and effect and has not been modified or amended in any respect whatsoever. To the knowledge of Operator, the Management Agreement embodies
the entire agreement and understanding between Owner and Operator with respect to the subject matter of the Management Agreement. A true, complete, and correct copy of the Management Agreement is attached hereto as Exhibit A.

  

 K-1 

	 	2.	Operator has not given any notice of any default by Owner under the Management Agreement that has not been cured as of the date hereof, nor has Operator received from Owner any
notice of any default by Operator under the Management Agreement that has not been cured as of the date hereof. To the knowledge of Operator, no default or event under the Management Agreement on the part of either Owner or Operator has occurred,
for which either party would be entitled as of the date hereof to give notice of default under the Management Agreement, terminate the Management Agreement, or exercise any other remedies for a breach or default thereunder by the other party.

  

	 	3.	To the knowledge of Operator, no dispute exists under the Management Agreement (notice of which has been given by Owner or Operator to the other) relating to Owner’s funding of
working capital to Operator for the operation of the Project or relating to the funding of any capital improvements to the Project, which has not been resolved as of the date hereof. 

  

	 	4.	Operator has made no advances of funds or any other payments, in either case in the nature of a loan to Owner except for a loan secured by a Deed of Trust dated April 30, 2004
in the original principal amount of $5,000,000 which, in accordance with the provisions of a Loan Agreement dated April 30, 2004 between Owner and Operator, is required to be repaid by Owner immediately upon the occurrence of, and as a
condition of, among other things, any direct or indirect sale, transfer or assignment of all or any part of the Project. 

  

	 	5.	Neither Operator, nor to Operator’s knowledge, Owner has received any notice in writing of any present violation of any federal, state, county or municipal laws, regulations,
ordinances, orders or directives relating to the use, operation or condition of the Project which has not been cured as of the date hereof 

  

	 	6.	To Operator’s knowledge, all amounts due and payable to Operator under the Management Agreement which are required to be paid on or prior to the date hereof have been paid in
full. As used in this paragraph, “Operator’s knowledge” means the actual knowledge of the Director of Finance of the Project without due inquiry or investigation and without any personal liability on the part of the Director of
Finance of the Project. The Refurbishing Fee and the Centralized Purchasing Fee payable to Operator in connection with the renovation of the Hotel completed in 2005 has been paid in full. As of the date hereof, the amount of (a) the Corporate
Sales and Marketing Charge is 0.87% of budgeted Hotel Revenue, (b) the Corporate Advertising Charge is 0.6% of budgeted Hotel Revenue, and (c) the Centralized Reservation Service Charge is Cdn.$49.00 per month per guest room in the
Project. As of the date hereof, there are no deferred Basic Fees payable to Operator 

  

	 	7.	The amount of funds held in the Capital Reserve on December 31, 2005 was $4,035.86. 

  

	 	8.	The person signing this letter on behalf of Operator is a duly authorized officer of Operator. 

  

 K-2 

 The foregoing acknowledgements are given by Operator solely in its capacity as operator under the
Management Agreement without prejudice to any rights arising under any other contract or agreement to which it is a party. 
  
 [Signature Page Follows Immediately] 
  

 K-3 

 THIS ESTOPPEL CERTIFICATE has been executed as of the date set forth above. 
  

			
	OPERATOR:
	
	 FOUR SEASONS HOTELS LIMITED, 
 a
corporation amalgamated under the laws of the Province of Ontario, Canada

		
	 By:
	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 
		
	 By:
	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 

  

 K-4 

 EXHIBIT A TO ESTOPPEL CERTIFICATE 
  
 Management Agreement 
  
 (See Attached) 
  

 K-5 

 EXHIBIT L 
  

Environmental Documents 
  

 L-1 

 EXHIBIT M 
  

Form of Deed 
  
 WHEN RECORDED RETURN TO: 
  
 SPECIAL WARRANTY DEED 
  
 THIS DEED, made this          day of
                    , 2006, by and between LD Georgetown Plaza Associates LLC, a Delaware limited liability company, successor by conversion
to Georgetown Plaza Associates, a New York general partnership, having an address c/o Louis Dreyfus Property Group, 20 Westport Road, Wilton, CT 06897 (“Grantor”); and SHC Washington, L.L.C., a Delaware limited liability company,
having an office at 77 West Wacker Drive, Suite 4600, Chicago, IL 60601 (“Grantee”). 
  
 WITNESSETH 
  
 That for and in consideration of the sum of Ten Dollars ($10.00), cash in hand paid, and other good and valuable consideration, receipt whereof is hereby acknowledged, Grantor does hereby grant, bargain, sell and convey, with special
warranty of title, unto Grantee, its successors and assigns, in fee simple absolute, all that certain parcel of land (the “Land”), together with the improvements, rights, privileges and appurtenances thereunto belonging, situate and
being in the District of Columbia, and more particularly described on Schedule 1 attached hereto and made a part hereof; 
  
 TOGETHER WITH all of Grantor’s right, title and interest, if any, in or to all and singular the tenements, hereditaments, easements, rights of way,
reservations, privileges, appurtenances and interests in leases, including without limitation, minerals, oil and gas rights, air, water and development rights, road, easements, streets and ways adjacent to the Land, and in profits or rights or
appurtenances in any way belonging or pertaining to the Land; 
  
 TOGETHER WITH all of Grantor’s right, title and interest, if any, in or to (i) all minerals, oil, gas and other hydro-carbon substances on or under the Land, (ii) all adjacent strips, streets, roads, alleys and
rights-of-ways, public or private, open or proposed, (iii) all easements, hereditaments, whether or not of record, and (iv) all access, air, water, riparian, development (including without limitation transferable development rights),
utility and solar rights. 
  
 AND Grantor, for itself, its
successors and assigns, warrants that Grantor has lawful authority to sell and convey said property, and warrants specially the property hereby conveyed and will execute such further assurances of said property as may be requisite. 
  

 M-1 

 This conveyance is subject to all matters of record, including those described on Schedule 2
attached hereto. 
  
 IN WITNESS WHEREOF, Grantor has caused this
Special Warranty Deed to be executed as of the day and year first written above. 
  

									
	WITNESS:	 	 	 	 LD GEORGETOWN PLAZA ASSOCIATES LLC,

	 	 	 	 	 a Delaware limited liability company

				
	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 Name: 
	 	 
	 	 	 	 	 	 	 Title:
	 	 

  

 M-2 

					
	 DISTRICT OF COLUMBIA
	  	*	  	 TO WIT:

  
 I HEREBY CERTIFY, that
on this          day of                     , 2006, before me, the undersigned Notary Public of
said jurisdiction, personally appeared
                                        
                        , known to me (or satisfactorily proven) to be the person whose name is subscribed to the within
instrument, who acknowledged himself/herself to be the
                                        
         of LD Georgetown Plaza Associates LLC, a
                                        
             (the “Company”), and that as such, being authorized to do so, acknowledged that he/she executed the foregoing and annexed document on behalf of the Company,
for the purposes therein contained and acknowledged the same to be the act and deed of said Company and that he/she delivered the same as such. 
  
 WITNESS my hand and Notarial Seal. 
  

	
	
	 
	 Notary Public

  
 My Commission Expires: 
  

 M-3 

 EXHIBIT N 
  

Form of Bill of Sale 
  
 BILL OF SALE 
  
 KNOW ALL MEN BY THESE PRESENTS, that LD Georgetown Plaza Associates LLC, a Delaware limited liability company, successor by conversion to Georgetown Plaza
Associates, a New York general partnership, having an address c/o Louis Dreyfus Property Group, 20 Westport Road, Wilton, CT 06897 (“Seller”), for Ten Dollars ($10.00) and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, paid by SHC Washington, L.L.C., a Delaware limited liability company, having an office at 77 West Wacker Drive, Suite 4600, Chicago, IL 60601 (“Purchaser”), has bargained and sold and by
these presents does grant and convey unto Purchaser, its successors and assigns, all of Seller’s right, title and interest in and to the FF&E and Supplies located at the Property known as and by Street Nos. 2800, 2810 and 2822 Pennsylvania
Avenue, Washington, D.C., as such terms are defined in that certain Purchase and Sale Agreement between Seller and Purchaser dated January __, 2006 (the “Sale Agreement”). 
  
 TO HAVE AND HOLD the Personal Property unto Purchaser, its successors and
assigns, forever, “as is”, without any representation, warranty or recourse whatsoever, express or implied, including, without limitation, any representation as to merchantability or fitness for a particular purpose, except as otherwise
expressly set forth in the Sale Agreement. 
  
 IN WITNESS WHEREOF,
Seller has duly executed this Bill of Sale as of the              day of
                    , 2006. 
  

			
	 SELLER:

	
	 LD Georgetown Plaza Associates LLC

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

 N-1 

 EXHIBIT O 
  

Form of Assignment and Assumption of Service Contracts, 
 Equipment Leases and Rooms Agreements 
  
 ASSIGNMENT AND ASSUMPTION OF SERVICE CONTRACTS, 
 EQUIPMENT LEASES AND ROOMS AGREEMENTS

  
 THIS AGREEMENT, made this
             day of                         , 2006, by
and between LD Georgetown Plaza Associates LLC, a Delaware limited liability company, successor by conversion to Georgetown Plaza Associates, a New York general partnership (“Assignor”), and SHC Washington, L.L.C., a Delaware
limited liability company, (“Assignee”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, by Purchase and Sale Agreement dated as of January __, 2006, by and between Assignor and Assignee (the “Sale Agreement”;
capitalized terms used but not otherwise defined herein shall be defined as provided in the Sale Agreement), Assignee has agreed to purchase from Assignor, and Assignor has agreed to sell to Assignee, certain property located at Street Nos. 2800,
2810 and 2822 Pennsylvania Avenue, Washington, D.C., and more particularly described in the Sale Agreement (the “Property”); and 
  
 WHEREAS, Assignor desires to assign to Assignee as of the date hereof Assignor’s interest in each and all of those certain service, maintenance and
supply contracts set forth on Schedule 1 annexed hereto (the “Service Contracts”), those certain equipment leases set forth on Schedule 2 annexed hereto (the “Equipment Leases”), and those certain
room agreements set forth on Schedule 3 annexed hereto (the “Room Agreements”), and Assignee desires to accept such assignment and assume the obligations of Assignor under the Service Contracts, Equipment Leases, and
Room Agreements from and after the date hereof; 
  
 NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree as follows: 
  
 1. Assignor hereby assigns, sets over and transfers unto Assignee to have and to hold from and after the date hereof all of the right,
title and interest of Assignor in, to and under the Service Contracts, Equipment Leases, and Room Agreements, and Assignee hereby accepts the within assignment and assumes and agrees with Assignor to perform and comply with and to be bound by all
the terms, covenants, agreements, provisions and conditions of the Service Contracts, Equipment Leases, and Room Agreements on the part of Assignor thereunder accruing on and after the date hereof, in the same manner and with the same force and
effect as if Assignee had originally executed the Service Contracts, Equipment Leases, and Room Agreements. 
  
 2. Assignee hereby unconditionally, absolutely and irrevocably agrees to indemnify and hold Assignor harmless of, from and against any and
all costs, claims, obligations, damages, penalties, causes of action, losses, injuries, liabilities and expenses, including, without limitation, reasonable attorneys’ fees, accruing under the Service Contracts, Equipment Leases, and Room
Agreements on and after the date hereof. 
  

 O-1 

 3. This Agreement shall not be construed as a representation or warranty by Assignor as
to the transferability of the Service Contracts, Equipment Leases or Rooms Agreements and Assignor shall have no liability to Assignee in the event that any or all of the Service Contracts (i) are not transferable to Assignee or (ii) are
cancelled or terminated by reason of this assignment or any acts of Assignee, it being understood that the assignments herein are made without representation, warranty or recourse of any kind express or implied, except as otherwise expressly set
forth in the Sale Agreement. 
  
 4. This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 
  
 5. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which counterparts taken together
shall constitute one and the same agreement. 
  
 [Signature
Page Follows] 
  

 O-2 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first
above written. 
  

			
	 ASSIGNOR:

	
	 LD Georgetown Plaza Associates LLC

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

	
	 ASSIGNEE:

	
	 SHC Washington, L.L.C.

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

 O-3 

 Schedule 1 
  
 Service Contracts 
  

 O-4 

 Schedule 2 
  
 Equipment Leases 
  

 O-5 

 Schedule 3 
  
 Rooms Agreements 
  

 O-6 

 EXHIBIT P 
  

Form of Assignment and Assumption of Space Leases, Lease Deposits and Off-Site Rental Agreement 
  
 ASSIGNMENT AND ASSUMPTION OF SPACE LEASES, LEASE DEPOSITS AND OFF-SITE RENTAL AGREEMENT

  
 ASSIGNMENT AND ASSUMPTION OF SPACE LEASES, LEASE DEPOSITS
AND OFF-SITE RENTAL AGREEMENT, dated                     , 2006, between LD Georgetown Plaza Associates LLC, a Delaware limited liability
company, successor by conversion to Georgetown Plaza Associates, a New York general partnership, having an office c/o Louis Dreyfus Property Group, 20 Westport Road, Wilton, CT 06897 (“Assignor”) and SHC Washington, L.L.C., a
Delaware limited liability company, having an office at 77 West Wacker Drive, Suite 4600, Chicago, IL 60601 (“Assignee”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, Assignor has this day sold and conveyed to assignee the real
property more particularly described in Schedule 1 annexed hereto and made a part hereof (the “Premises”). 
  
 NOW, THEREFORE, in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration paid by Assignee to Assignor, the
receipt and sufficiency of which are hereby acknowledged, Assignor hereby assigns, transfers and conveys to Assignee all of Assignor’s right, title and interest, if any, as landlord in and to (i) the leases, licenses and other occupancy
agreements affecting the Premises and all guarantees thereof set forth on Schedule 2 annexed hereto and made a part hereof (collectively, the “Leases”), and (ii) the security deposits and/or prepaid rents made under the
Leases and set forth on Schedule 3 annexed hereto and made a part hereof (collectively, the “Lease Deposits”) and all of Assignor’s right, title and interest, if any, as tenant under that certain Rental Agreement dated
December 9, 2004 between Dittmar Company, as landlord and Georgetown Plaza Associates, as tenant, for premises known as Apartment 1519, 4001 North 9th Street, Arlington, VA 22203 (the “Off-Site Rental Agreement”). 

 
 TO HAVE AND TO HOLD the same unto Assignee, its successors and assigns,
forever, from and after the date hereof, subject to the terms, covenants, conditions and provisions of the Leases. 
  
 ASSIGNEE HEREBY ACCEPTS the foregoing assignment, acknowledges receipt of the Lease Deposits, assumes and agrees to perform all of the obligations of
Assignor under the Leases, accruing from and after the date hereof; and agrees to hold or apply all of the Lease Deposits in accordance with the terms of the Leases under which the Lease Deposits were made. 
  
 Assignee hereby unconditionally and irrevocably waives any and all claims and
causes of action of any nature whatsoever it may now or hereafter have against Assignor or Assignor’s Affiliates, and hereby unconditionally and irrevocably fully releases and discharges Assignor and Assignor’s Affiliates from any and all
liability whatsoever which may now or hereafter accrue in favor of Assignee against Assignor or Assignor’s Affiliates, in connection with or arising out of 

  

 P-1 

 
the Leases, Lease Deposits and Off-Site Rental Agreement as to matters in connection therewith that accrue on or after the date hereof. 
  
 This Assignment and Assumption of Space Leases, Lease Deposits and Off-Site
Rental Agreement is made without any covenant, warranty or representation by, or recourse against, Assignor or Assignor’s Affiliates of any kind whatsoever, except as may be expressly set forth in that certain Purchase and Sale Agreement
between Assignor and Assignee dated January __, 2006. 
  
 IN
WITNESS WHEREOF, this Assignment and Assumption of Space Leases, Lease Deposits and Off-Site Rental Agreement has been executed on the date and year first above written. 
  

			
	 ASSIGNOR:

	
	 LD Georgetown Plaza Associates LLC

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

	
	 ASSIGNEE:

	
	 SHC Washington, L.L.C.

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

 P-2 

 SCHEDULE 1 
  

DESCRIPTION OF THE LAND 
  
 Lots 30 and 31 in the subdivision made by Georgetown Plaza Associates in Square 1195, as per plat recorded in Liber 165 at folio 142 of the Records of the Office of the
Surveyor for the District of Columbia. 
  
 ALSO, Part of Lot 1 in Square 25 in
Holmead’s Addition to Georgetown, now known as Square 1195, in the City of Washington, also part of Lot 12 in Square 25, in Deakins, Lee and Casanave’s Addition to Georgetown, now known as Square 1195, in the City of Washington, described
in accordance with a Plat of Computation recorded in Survey Book 172 at page 72, of the Records of the Office of the Surveyor of the District of Columbia, as follows: 
  
 BEGINNING for the same at a point in the Southerly line at Pennsylvania Avenue Northwest, distant Southeasterly 63.10 feet from the
Southeast corner of 29th Street and Pennsylvania Avenue; and running thence Southeasterly along said line of Pennsylvania Avenue, 13.34 feet to the center line of the party wall between premises 2822 and 2820 Pennsylvania Avenue; thence South 00
degrees 15 minutes West along said center line and a prolongation thereof, 58.96 feet; thence West, 12.50 feet to intersect a South prolongation of the center line of the party wall between premises 2822 and 2822 1/2 Pennsylvania Avenue; thence
North 00 degrees 15 minutes East along said prolongation and said center line of said party wall 63.67 feet to the place of beginning. 
  
 NOTE: At the date hereof the above described land is designated on the Records of the Assessor of the District of Columbia for taxation purposes as Lot 815 in Square
1195. 
  

 P-3 

 SCHEDULE 2 
  

LEASES 
  

	1.	Lease dated October 22, 1996 between Georgetown Plaza Associates and Guarisco Gallery, Ltd. 

  

	 	a)	First Amendment to Retail Lease dated December 18, 2002. 

  

	2.	Lease dated March 30, 2005 between Georgetown Plaza Associates and Yannick Lubiato and Corrine Lubiato. 

  

	3.	Lease dated February 5, 1992 between Georgetown Plaza Associates and George and Denise Ozturk. 

  

	 	a)	First Amendment to Retail Lease dated July 16, 1997. 

  

	 	b)	Second Amendment to Retail Lease dated May 19, 2005. 

  

	4.	Lease dated November 6, 1996 between Georgetown Plaza Associates and Pardoe Real Estate, Inc. 

  

	 	a)	Tenant/Owner Agreement - Revision #4 dated October 24, 1997. 

  

	 	b)	Letter dated December 15, 1998 notifying Landlord of the sale and transfer of Pardoe Real Estate, Inc. to NRT, Inc. 

  

	 	c)	Letter Agreement dated March 14, 2002 for temporary signage and notification of name change. 

  

	 	d)	Letter dated April 18, 2002 with trade name change from NRT, Inc. to NRT Mid-Atlantic, Inc. dba Coldwell Banker Residential Brokerage. 

  

	 	e)	Trade Name Change Amendment dated July 19, 2002. 

  

	5.	Lease dated April 24, 2001 between Georgetown Plaza Associates and SNH Designe Corp. 

  

	6.	Lease dated April 24, 2001 between Georgetown Plaza Associates and SNP, Inc. 

  

	8.	Lease dated 2000 between Georgetown Plaza Associates and Kalama Beach Corporation II, as modified by the revised pages attached to the letter from tenant to landlord dated
March 19, 2001, showing tenant as Kalama Gifts and Sundries LLC (which has been designated the April 2, 2001 Amendment). 

  

 P-4 

 SCHEDULE 3 
  

LEASE DEPOSITS 
  
 Lease dated March 30, 2005 between Georgetown Plaza Associates and Yannick Lubiato and Corrine Lubiato: Security Deposit of $28,200.00. 
  

 P-5 

 EXHIBIT Q 
  

Form of Omnibus Assignment of Receivables, Intangibles, Warranties and Licenses 
  
 ASSIGNMENT OF RECEIVABLES, INTANGIBLES, WARRANTIES, LICENSES, BOOKS, AND PLANS AND SPECS 
  
 THIS ASSIGNMENT OF INTANGIBLES, WARRANTIES ,LICENSES, BOOKS, AND PLANS AND
SPECS (this “Assignment”) is made as of                     , 2006, between LD Georgetown Plaza Associates LLC, a Delaware
limited liability company, successor by conversion to Georgetown Plaza Associates, a New York general partnership, having an office c/o Louis Dreyfus Property Group, 20 Westport Road, Wilton, CT 06897 (“Assignor”) and SHC
Washington, L.L.C., a Delaware limited liability company, having an office at 77 West Wacker Drive, Suite 4600, Chicago, IL 60601 (“Assignee”). 
  

This Assignment is being delivered pursuant to that certain Purchase and Sale Agreement between Assignor and Assignee dated as of January
        , 2006 (as amended, the “Sale Agreement”). Capitalized terms not otherwise defined herein shall have their respective meanings as set forth in the Sale Agreement. 
  
 For and in consideration of the sum of Ten Dollars ($10.00) and other good
and valuable consideration paid by Assignee to Assignor, the receipt and sufficiency of which are hereby acknowledged, Assignor hereby conveys, assigns, sells, grants, transfers, sets over, and delivers to Assignee, its successors and assigns, all
of Assignor’s right, title and interest in and to the Receivables, Intangibles, Warranties, Licenses, Books, and Plans and Specs. 
  
 This Assignment is made without representation, warranty (expressed or implied) or recourse of any kind, except as otherwise expressly set forth in the
Sale Agreement. 
  
 This Assignment shall be binding upon and
shall inure to the benefit of the Assignee, its successors and assigns. 
  
 [Remainder of this page left blank intentionally. Signature page follows.] 
  

 Q-1 

 IN WITNESS WHEREOF, Assignor does hereby execute and deliver this Assignment as of the date and year
first above written. 
  

			
	 ASSIGNOR:

	
	 LD Georgetown Plaza Associates LLC

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

 Q-2 

 EXHIBIT R 
  

Form of Assignment and Assumption of Reservations and Reservation Deposits 
  
 ASSIGNMENT OF RESERVATIONS AND RESERVATION DEPOSITS 
  
 THIS ASSIGNMENT OF RESERVATIONS AND RESERVATION DEPOSITS (this
“Agreement”) made and entered into this          day of                 , 2006, between LD
Georgetown Plaza Associates LLC, a Delaware limited liability company, successor by conversion to Georgetown Plaza Associates, a New York general partnership, having an address c/o Louis Dreyfus Property Group, 20 Westport Road, Wilton, CT 06897
(“Assignor”) and SHC Washington, L.L.C., a Delaware limited liability company, having an office at 77 West Wacker Drive, Suite 4600, Chicago, IL 60601 (“Assignee”). 
  
 W I T N E S S E
T H: 
  
 Assignor, in consideration of Ten
Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby assigns to Assignee all of Assignor’s right, title and interest, in and to the Reservations and Reservation
Deposits in the amount of $                    , which is the aggregate amount of all Reservation Deposits held by Assignor. Assignee
acknowledges that, simultaneously with the execution hereof, Assignee has received a credit against the purchase price in the amount of
$                     from Assignor, representing such Reservation Deposits. 
  
 TO HAVE AND TO HOLD unto Assignee and its successors and assigns to its and their own use and benefit forever. 

 
 All capitalized terms not herein defined shall have the meaning ascribed
to them in that certain Purchase and Sale Agreement dated as of January     , 2006, by and between Assignor and Assignee (the “Sale Agreement”). 
  
 This Assignment is made by Assignor without representation, warranty or
recourse, expressed or implied, except as otherwise expressly set forth in the Sale Agreement. 
  
 (Signature Page Follows) 
  

 R-1 

 IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment of Reservation Deposits as of the
date first above written. 
  

			
	ASSIGNOR:
	
	LD Georgetown Plaza Associates LLC
		
	 By:
	 	 
	 	 	Name:
	 	 	Title:
	
	ASSIGNEE:
	
	SHC Washington, L.L.C.
		
	 By:
	 	 
	 	 	Name:
	 	 	Title:

  

 R-2 

 EXHIBIT S 
  

Form of Assignment and Assumption of Hotel Management Agreement 
  
 ASSIGNMENT AND ASSUMPTION OF HOTEL MANAGEMENT AGREEMENT 
  
 THIS ASSIGNMENT AND ASSUMPTION OF HOTEL MANAGEMENT AGREEMENT (this
“Assignment”), dated as of                              , 2006 (the
“Effective Date”) by and among LD Georgetown Plaza Associates LLC, a Delaware limited liability company, successor by conversion to Georgetown Plaza Associates, a New York general partnership, having an address c/o Louis Dreyfus
Property Group, 20 Westport Road, Wilton, CT 06897 (“Assignor”), SHC Washington, L.L.C., a Delaware limited liability company, having an address at 77 West Wacker Drive, Suite 4600, Chicago, IL 60601 (“Assignee”),
and Four Seasons Hotels Limited, a corporation amalgamated under the laws of the Province of Ontario, Canada (“Four Seasons”) 
  
 W I T N E S S E T H: 
  
 WHEREAS, by Purchase and Sale Agreement dated as of January __, 2006, by
and between Assignor and Assignee (the “Sale Agreement”), Assignee has agreed to purchase from Assignor, and Assignor has agreed to sell to Assignee, certain property comprising the Four Seasons Hotel, Washington, D.C. and located
at Street Nos. 2800, 2810 and 2822 Pennsylvania Avenue, Washington, D.C., and more particularly described in the Sale Agreement (the “Property”); and 
  
 WHEREAS, Assignor desires to assign to Assignee all of Assignor’s right, title and interest in and to the Hotel
Management Agreement described on Schedule 1 annexed hereto (the “Hotel Management Agreement”) from and after the Effective Date, and Assignee desires to accept such assignment and assume the obligations of Assignor
thereunder from and after the Effective Date. 
  
 NOW, THEREFORE,
in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree as follows: 
  
 1. Assignor hereby assigns, sets over and transfers unto Assignee to have and to hold from and after the Effective Date all of the right,
title and interest of Assignor in, to and under the Hotel Management Agreement, and Assignee hereby accepts the within assignment and assumes and agrees with Assignor and Four Seasons (a) to perform and comply with and to be bound by all the
terms, covenants, agreements, provisions and conditions of the Hotel Management Agreement on the part of Assignor thereunder accruing on and after the Effective Date, in the same manner and with the same force and effect as if Assignee had
originally executed the Hotel Management Agreement and (b) that the Hotel Management Agreement shall continue in full force and effect. 
  
 2. Assignee hereby unconditionally, absolutely and irrevocably agrees to indemnify and hold Assignor harmless of, from and against any and
all costs, claims, obligations, damages, penalties, causes of action, losses, injuries, liabilities and expenses, 

  

 S-1 

 
including, without limitation, reasonable attorneys’ fees, accruing under the Hotel Management Agreement on and after the Effective Date. 
  
 3. Assignee hereby represents and warrants to Four Seasons
that: 
  
 (a) it is the legal and beneficial
owner of the Hotel effective on the Effective Date; 
  
 (b) it is not a competitor of Four Seasons; and 
  
 (c) it is not of ill repute or in any other manner a person, firm or corporation with whom or with which the average prudent businessman would not wish to associate in a commercial venture. 
  
 4. This Assignment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns. 
  
 5. This Assignment shall be governed and construed and enforced in accordance with the laws of the State of New York. 
  
 6. This Assignment may be executed in counterparts, each of which shall be deemed an original and all of which counterparts taken together
shall constitute one and the same agreement. 
  
 7. Four Seasons acknowledges that the form and substance of this Assignment satisfies the requirements of Section 15.01(a) of the Hotel Management Agreement. 
  
 [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] 
  

 S-2 

 IN WITNESS WHEREOF, the undersigned have duly executed this Assignment as of the day and year first
hereinabove written. 
  

			
	ASSIGNOR:
	
	LD GEORGETOWN PLAZA ASSOCIATES LLC
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

	
	ASSIGNEE:
	
	SHC WASHINGTON, L.L.C.
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

	
	FOUR SEASONS:
	
	FOUR SEASONS HOTELS LIMITED
		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

		
	 By:
	 	 
	 	 	 Name:

	 	 	 Title:

  

 S-3 

 Schedule 1 
  
 Hotel Management Agreement 
  

 S-4 

 EXHIBIT T 
  

Form of License Agreement for Art Work 
  
 ART WORK LICENSE 
  
 License Agreement (this “Agreement”) dated as of February 28, 2006, is between William Louis-Dreyfus (“Licensor”) and DTRS
Washington, L.L.C., a Delaware limited liability company (“Licensee”). 
  
 RECITALS 
  

	 	A.	As of the date hereof, Licensee has acquired a leasehold interest in real property in Washington, D.C. on which is located a hotel, managed by Four Seasons Hotels Limited under
contract with Licensee, and other improvements (collectively, the “Hotel”). The Hotel is a luxury hotel that wishes to display original and distinctive works of art on its premises to attract sophisticated clientele and benefit its
business. 

  

	 	B.	Licensor maintains a collection of artworks (as owner or, in some cases, as agent for an undisclosed principal), some of which have been displayed in the Hotel pursuant to an
arrangement between Licensor and the former owner of the Hotel. Licensor has derived tangible and intangible benefits from this display arrangement, including, but not limited to, exposure of the Hotel’s clientele to the artwork and the
potential increase in the value of the collection related to such display. 

  

	 	C.	This Agreement reflects the wishes of Licensor and Licensee to set forth the terms on which Licensor’s artworks will continue to be displayed in the Hotel.

  
 AGREEMENTS 
  
 1. Art Objects. 
  

	 	(a)	Works of art covered by this Agreement (each an “Object” and, collectively, the “Objects”) are the works of art in Licensor’s collection that
Licensor has caused or will cause to be delivered to the Hotel for display, excepting only those that have been removed as provided herein from the Hotel’s premises by Licensor or with Licensor’s consent other than for temporary storage
during Hotel renovations. 

  

	 	(b)	As of the date of this Agreement, the Objects are the items set forth on the “Schedule of Art Objects” attached to and hereby made a part of this Agreement.

  

	 	(c)	Licensor may cause the Schedule of Art Objects to be amended from time to time to remove or add one or more Objects as works of art are removed from or delivered to the Hotel’s
premises by Licensor as provided herein. Such revised Schedule of Art Objects, when dated and signed by Licensor and Licensee, will replace the Schedule of Art Objects then in effect and constitute a part of this Agreement. 

 

 T-1 

	 	(d)	The failure to so amend the Schedule of Art Objects will not (i) preclude an Object from being covered under this Agreement or (ii) cause a work of art that has been
removed as provided herein from the Hotel’s premises by Licensor or with Licensor’s consent to be deemed an Object. 

  
 2. License. 
  

	 	(a)	Licensor grants to Licensee the right to display the Objects in their current (or other mutually agreed) locations in the Hotel, subject to the terms of this Agreement, including
without limitation Licensor’s removal rights as provided herein. 

  

	 	(b)	Licensee acknowledges and agrees that Licensee does not have and will not obtain any other rights or interests in respect of any of the Objects (and hereby waives any and all such
other rights and interests that it may have), including, without limitation, ownership of any Object, title to any Object, intellectual property rights in any Object, or interest in the value of any Object. 

  

	 	(c)	Licensor shall not be obligated to make available any minimum number of Objects to Licensee, subject to Section 5(a), or to include any particular work(s) of art among the
Objects Licensor makes available to Licensee. 

  

	 	(d)	Licensee shall not be obligated to display any Object(s) or any particular Object. 

  
 3. Payment. 
  
 In consideration of the license granted under Section 2 above, Licensee will pay Licensor an annual amount of $50,000, payable
quarterly in arrears . (The first such quarterly payment will be made on or promptly following March 31, 2006 and shall be prorated to cover the period commencing on the date hereof.) At Licensor’s request, but not more frequently than
annually, the amount of such annual payment will be increased by the amount of the increase, if any, in the cost to Licensor of insuring the Objects, not to exceed 5% of the then current annual payment. 
  
 4. Licensee’s Duties and Obligations.

  

	 	(a)	Licensee acknowledges that each of the Objects is a unique work of art of material value and that, subject to Licensor’s rights under this Agreement, Licensee will be in
exclusive possession and control of the Objects at all times. Accordingly, Licensee will: 

  

	 	(i)	Cause all of its employees and contractors to use a high degree of care in handling the Objects, which shall in any event be at least the same degree of care and diligence persons
of ordinary prudence would use in handling their own similar property; 

  

	 	(ii)	 Not move any Object or permit any Object to be moved from its location (other than to protect the Object in case of danger or emergency or to protect the Object in
case of renovations or construction) without Licensor’s consent, which consent 

  

 T-2 

	 	 
will not be unreasonably withheld, provided that if such removal is to protect the Object in case of renovation or construction, Licensee will provide
Licensor reasonable notice and opportunity to have the Object moved by Licensor; 

  

	 	(iii)	Notify Licensor promptly if Licensee has actual knowledge that damage to any Object has occurred or is reasonably likely; 

  

	 	(iv)	Cause the Objects to be dusted on a routine basis in accordance with reasonable instructions, if any, provided by Licensor, and not provide or permit others to provide any other
cleaning or maintenance of any Object, except in accordance with instructions from Licensor. 

  
 Licensee will permit Licensor and Licensor’s agents or contractors to have access to the Objects at all reasonable times to inspect, clean and
maintain them and to remove them temporarily for cleaning or maintenance. 
  

	 	(b)	Licensee will cooperate with Licensor for the purpose of protecting the interest of Licensor in the Objects (or the interest of the undisclosed principal for whom Licensor is acting
as agent in respect of certain Objects), including without limitation by: 

  

	 	(i)	Not representing to anyone that Licensee owns or has an ownership or security interest in any Object; 

  

	 	(ii)	Not causing or consenting to, or knowingly permitting, any lien or other encumbrance to be placed on any Object; 

  

	 	(iii)	Executing amended Schedules of Art Objects as contemplated by Section l(c) above; and 

  

	 	(iv)	Executing Uniform Commercial Code financing statements if and as requested by Licensor. Licensee authorizes Licensor to file (A) this Agreement in the real estate records of
the City of Washington D.C. and (B) financing statements, precautionary or otherwise, disclosing Licensor’s interest in the Objects, without Licensee’s signature, as Licensee’s attorney-in-fact. 

  

	 	(c)	Licensee represents that, prior to the date of this Agreement, Licensee has (i) not represented to anyone that it owns (or will acquire) or has (or will acquire) an ownership
or security interest in any Object, and (ii) not caused or consented to, nor knowingly permitted, any lien or other encumbrance to be placed on any Object. 

  

	 	(d)	To the extent this Agreement, including Section 5 below, permits Licensor to remove any or all of the Objects, Licensee will cooperate with Licensor’s removal, including
without limitation by permitting Licensor and Licensor’s agents or contractors to have access to the Objects at all reasonable times to remove them. 

  

 T-3 

	 	(e)	Licensee will pay or reimburse Licensor for all personal property, use and other similar taxes, impositions and charges that may be imposed upon or in connection with, or assessed
against, the Objects in connection with their ownership, delivery to or display in the Hotel or against this Agreement (collectively, “Personal Property Taxes”), provided Licensee will not be responsible for more than $50,000 of any such
Personal Property Taxes due during each twelve month period during the term hereof commencing on the date hereof (“License Year”), such amount to be prorated for any partial License Year, it being agreed that Licensor will be responsible
for the Personal Property Taxes in excess of such amount in any Lease Year. If the amount of Personal Property Taxes exceeds $50,000 for any License Year, Licensor may notify Licensee that it elects to terminate this Agreement, and unless Licensee
notifies Licensor within 10 business days after Licensor’s notice that it will pay such excess for such License Year , this Agreement shall terminate 90 days after the effective date of Licensor’s notice. In the event of such termination
the Objects shall be removed subject to the terms hereof that govern removal at the end of the term of this Agreement. 

  

	 	(f)	As to Objects Licensee requires Licensor to remove before the end of the term pursuant to Section 5(b)hereof (unless Licensee requests that all Objects be removed), Licensee
will pay or reimburse Licensor for reasonable out-of-pocket packing, shipping, installation and removal costs incurred by Licensor in connection with their return to Licensor. 

  
 5. Licensor’s Rights and Obligations.

  

	 	(a)	Licensor may remove from the Hotel any Object(s) it wishes to have removed at a mutually convenient time but in no event longer than 90 days from the date Licensor provides Licensee
with notice of such removal, provided Licensor shall (unless such removal is a temporary removal of such Object(s) in connection with a loan thereof to a museum for temporary display) concurrently provide substitute Object(s) of appropriate size for
the location of the Object(s) being removed and of a quality consistent with the overall collection maintained by Licensor. Upon the death of Licensor, and for the duration of this Agreement after that event, such notice period shall be reduced to
60 days. 

  

	 	(b)	Licensor shall, subject to Licensee’s obligation pursuant to Section 4(f), remove from the Hotel any or all Object(s) Licensee wishes to have removed within 90 days after
Licensor receives a notice from Licensee requesting that removal, unless Licensee requests that all or substantially all Objects be removed, in which case they shall be removed within 6 months of such notice, and in the case of removal pursuant to
this Section 5(b) Licensor shall have no obligation to replace such Objects. If greater than 25 % of the Objects in the aggregate are removed, the payments to be made pursuant to Sections 3 and 4(e) shall be proportionately reduced based
upon the number of Objects remaining compared to the number of Object(s) included on the Schedule of Art Objects attached hereto. 

  

 T-4 

	 	(c)	The physical installation, relocation or removal of any Object(s) as provided herein, whether at Licensor’s or Licensee’s request, will be made only by Licensor’s
representatives unless Licensor otherwise consents in writing. 

  

	 	(d)	Except as to specific expenses expressly imposed on Licensor in other sections of this Agreement, Licensor will not be liable to Licensee on account of the Objects, the
installation, relocation or removal of any Object, or any other condition or circumstance relating to the Objects or this Agreement, including, without limitation, for damages resulting from loss of business profits, business interruption, or any
incidental damages or other economic consequential damages, excepting only the cost of repairing physical damage to the Hotel that would not have occurred but for the negligence of Licensor or its representatives in installing, relocating or
removing an Object. 

  

	 	(e)	Licensor may, but shall not be obligated to, place a label on or next to each Object displayed in the Hotel identifying some or all of (i) the Object’s title, dimensions
and media, (ii) the name and nationality of the artist who created it, (iii) the artist’s dates of birth and/or death, (iv) the date the Object was created, and (v) information regarding ownership of the Object. Any such
label shall be in a form and location and of a quality approved by Licensee (or by the manager of the Hotel on behalf of Licensee), it being agreed that such approval shall not be unreasonably withheld and that the form, location and quality of
labels currently in use are approved for this purpose. 

  

	 	(f)	All rights and duties accorded to Licensor in this Agreement may be exercised or performed by Licensor’s agents and contractors appointed by Licensor from time to time.
Licensor shall take all reasonable actions to ensure that any such agents and contractors cooperate with Licensee to minimize any inconvenience to the Hotel’s clientele. 

  
 6. Insurance; Risk of Loss. 
  
 Licensor will cause the Objects to be insured at Licensor’s expense for such risks and
in such amounts as he deems to be appropriate. As between Licensor and Licensee, Licensor will have the risk of loss, destruction, theft, damage, and vandalism, to or of the Objects, and Licensee will not be liable to Licensor for loss, destruction,
theft, damage, and vandalism, to or of any Object, except if and to the extent that the loss, destruction, theft, damage or vandalism occurs in connection with a breach by Licensee of its obligations under this Agreement. Licensee shall not be named
as an additional insured under any insurance policy (or policies) taken out by Licensor under which the Objects may be covered. 
  
 7. Schedule. 
  
 Licensor represents that the Schedule of Art Objects includes all of the Objects as of the date of this Agreement. 
  

 T-5 

 8. Non-assignment. 
  
 Licensee shall not assign or sublicense any of its rights under this Agreement except to an affiliate. Any other attempted assignment or
sublicense by Licensee shall be void and ineffective. Licensor may assign all or any part of Licensor’s rights and obligations under this Agreement. Subject to the foregoing, Licensor’s and Licensee’s obligations and rights under this
Agreement shall be binding upon and inure to the benefit of their permitted successors and assigns, and to any trustees, administrators and/or executors of Licensor’s estate. 
  
 9. Sale of Hotel; Disclosure. 
  
 In the event of (a) the sale by Licensee of any interest in any part of the Hotel or (b) the transfer of voting control of
Licensee to a person who does not hold that control on the date of this Agreement, or is not an affiliate of such controlling party, Licensee shall provide Licensor such reasonable advance notice of such transaction as may be necessary for Licensor
to take any actions Licensor deems necessary or advisable, in Licensor’s sole discretion, to protect the Objects and his interest in the Objects, subject to the terms of this Agreement, including without limitation the termination of this
Agreement as provided in Section 14(D). Such notice shall be delivered reasonably promptly, and in no event shall such notice be delivered less than 30 days prior to the closing of such sale. Prior to such sale or transfer, Licensee shall
disclose to the purchaser or transferee that the Objects are owned by an individual who is not a party to the transaction and not by Licensee. Licensee shall not, without the prior consent of Licensor, identify such individual as Licensor or
otherwise disclose to any such purchaser that Licensor is the owner of any Object, except in connection with a permitted assignment of this Agreement and to Licensee’s representatives, and except as may be required by law. 
  
 10. Notices. 
  
 All notices and communications given by either party under this Agreement must be written
and personally delivered or sent by U.S. mail, with return receipt requested or by nationally recognized courier service or by facsimile addressed, if to: 
  
 Licensor, to: 
  
 William Louis-Dreyfus 
 c/o Louis Dreyfus Holding Company Inc. 
 200 Park Avenue, 33rd Floor 
 New York, NY 10166-3399 
 Facsimile Number: (212) 818-9373 
  

 T-6 

 With a copy to: 
  
 Akin Gump Strauss Hauer & Feld LLP 
 590 Madison Avenue 

New York, NY 10022 
 Attention: Patrick Fenn, Esq. 
 Facsimile Number: (212) 872-1002 
  
 Licensee, to: 
  
 DTRS Washington, L.L.C. 
 77 West Wacker Drive, Suite 4600 
 Chicago, IL 60601 
 Attention: General Counsel 
 Facsimile Number: (312) 658-5799 
  
 with a copy to: 
  
 Perkins Coie LLP 
 131 South Dearborn Street, Suite 1700 
 Chicago, IL 60603 
 Attn: Phillip Gordon, Esq. 
 Facsimile Number: (312) 324-9400 
  
 11. Choice of Law; Forum. 
  
 This Agreement will be governed by the laws of the State of New York without giving effect
to any principles relating to conflict of laws, and each of Licensee and Licensor submits to the jurisdiction of the State and the Federal courts in New York for the resolution of all disputes relating to this Agreement. 
  
 12. Entire Agreement. 
  
 This Agreement contains the entire agreement between Licensee and Licensor regarding the
subject matter hereof and may be amended only by a writing signed by both Licensee and Licensor. 
  
 13. Cooperation. 
  
 Each party shall reasonably cooperate with, and take such action as may be reasonably requested by the other party in order to carry out the provisions and purposes of
this Agreement, and the transactions contemplated hereunder, including, without limitation, protecting Licensor’s property interest in the Objects. Without limiting the generality of the foregoing, Licensee agrees that (i) it will make
reasonable efforts to obtain, without cost to it, the acknowledgement of this Agreement as provided on the signature page hereof by Four Seasons Hotels Limited (provided that the obtaining of such acknowledgment shall not be a condition to the
effectiveness of this 

  

 T-7 

 
Agreement), and (ii) if the management of the Hotel changes during the course of this Agreement, Licensee will request that any and all subsequent
management entities execute substantially similar acknowledgements and agreements or such other agreements as may be reasonably necessary to protect Licensor’s interest in the Objects. 
  
 14. Termination. 
  
 This Agreement shall continue through March 31, 2010, and for annual 12 month periods
thereafter unless either Licensor or Licensee gives the other not less than 6 months advance notice prior to the end of the then current term that it elects not to renew this Agreement. This Agreement may be terminated as of an earlier date
(A) by Licensor following the breach of this Agreement by Licensee if such breach is not cured, or commenced to be cured and thereafter diligent efforts taken to complete such cure, within thirty (30) days after notice of breach from
Licensor specifying the breach, (B) by Licensee if it elects for all of the Objects to be removed pursuant to Section 5(b) or by Licensor as provided in Section 4(e), (C) by Licensor on six months notice following the replacement
of Four Seasons Hotels Limited with any other person as manager of the Hotel that is not of equal standing, (D) upon the closing of a sale or transfer as contemplated by Section 9 if Licensor does not consent to the assignment of this
Agreement to the purchaser, or (E) by Licensor upon not less than one year’s notice following the death of William Louis-Dreyfus (if Licensor is then such individual, or any trustee, executor or administrator of his estate, or any trust,
partnership or similar entity established for the benefit of one or more members of his family to which this Agreement had been assigned by Licensor during his lifetime). In the event of any termination under this Section, Licensee shall pay to
Licensor a pro rata portion of the payment provided in Section 3 above relating to the period preceding the date of such termination. Notwithstanding the foregoing, this Agreement will not terminate until all the Objects have been removed from
the Hotel and are in the custody and control of Licensor or an agent or contractor Licensor may designate to receive such Objects in the event of a termination under this Section. The provisions of this Agreement which by their nature should survive
(including Sections 2(b), 4(f), 5(c) and (d), 13 and 16 hereof) shall survive any termination of this Agreement. 
  
 15. Licensor’s Representations and Disclaimer. 
  
 Licensor represents that Licensor has the power and authority to enter into this Agreement and to grant the license granted hereunder with
respect to the Objects. Licensor makes no, and Licensor hereby disclaims any and all, other representations or warranties regarding the Objects, express or implied, including without limitation representations or warranties regarding ownership of
the Objects, excepting only the express representation contained in Section 7 hereof. 
  
 16. Licensor’s Right of First Offer. 
  
 In the event Licensee determines, in its sole discretion, to permanently remove (it being understood that this would not apply to a
temporary removal in connection with construction or renovation work) the two-part sculpture by Raymond Mason that is affixed to the exterior of the Hotel in the courtyard prior to March 31, 2010, Licensor shall have the right of first offer to
purchase such sculpture within 60 days after notice to Licensor by Licensee of its election to remove the sculpture, which notice shall include the price as which it is offering to sell such sculpture, in which case Licensor if it purchases shall
comply at its expense with all legal requirements in connection with such removal. 
  
 [NO FURTHER TEXT ON THIS PAGE] 
  

 T-8 

 Agreed, 
  

									
	 	 	 	 	 DTRS WASHINGTON, L.L.C.

				
	 	 	 	 	By:	 	 
	 William Louis Dreyfus
	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 

  
 Four Seasons Hotels Limited
acknowledges receiving a copy of this Agreement along with the attached Schedule of Art Objects and makes the representations in Section 4(c) as if it were Licensee. Four Seasons Hotels Limited agrees to cooperate with Licensee and Licensor in
carrying out the purposes of this Agreement and, in particular, to comply with Sections 4(a), 4(b)(i), 4(b)(ii), 4(d) and 5(c) as if it were Licensee. 
  

									
	 FOUR SEASONS HOTELS LIMITED
	 	 	 	 
				
	By:	 	 	 	 	 	 Date: February 28, 2006

	 	 	 Name:
	 	 	 	 	 	 
	 	 	 Title:
	 	 	 	 	 	 
				
	By:	 	 	 	 	 	 Date: February 28, 2006

	 	 	 Name:
	 	 	 	 	 	 
	 	 	 Title:
	 	 	 	 	 	 

  

 T-9 

 Schedule of Art Objects 
  
 The following schedule identifies and describes the Art Objects and the locations of each within the Hotel as of February 28, 2006.

  
 [ATTACHED] 
  

 T-10 

 EXHIBIT U 
  

Due Diligence Materials 
  

 U-1 

 EXHIBIT V 
  

Form of Assignment of Deed of Trust Evidencing General Manager’s Mortgage Loan 
  
 ASSIGNMENT OF DEED OF TRUST 
  
 by 
  
 LD GEORGETOWN PLAZA ASSOCIATES LLC, a Delaware limited liability company, 
 having an
address c/o 
 Louis Dreyfus Property Group 
 20 Westport Road 
 Wilton, CT 06897 
 (“Assignor”) 
  
 to 
  
 SHC WASHINGTON, L.L.C., a Delaware limited
liability company, 
 having an address at 
 77 West Wacker Drive, Suite 4600 
 Chicago, IL 60601 
 (“Assignee”) 
  

			
	 Dated:
 as of
                         , 2006
  
 Premises:
 11621 Luvie Court

Montgomery County,
 Potomac, Maryland, 20854
	  	 Record and Return to:
 ________________________
 ________________________
 ________________________
 Attn: ________________________
 Re: ________________________

  

 V-1 

 ASSIGNMENT OF DEED OF TRUST 
  
 KNOW that LD GEORGETOWN PLAZA ASSOCIATES LLC, a Delaware limited liability company, successor by conversion to Georgetown
Plaza Associates, a New York general partnership, having an address c/o Louis Dreyfus Property Group, 20 Westport Road, Wilton, CT 06897 (the “Assignor”), in consideration of $10.00 and other good and valuable consideration the
receipt and sufficiency is recognized hereby, paid by SHC WASHINGTON, L.L.C., a Delaware limited liability company, having an office at 77 West Wacker Drive, Suite 4600, Chicago, IL 60601 (the “Assignee”), hereby assigns, grants,
sells and transfers to, and the Assignee’s successors, transferees and assigns forever, all of the right, title and interest of the Assignor in and to the security instrument (the “Instrument”) listed on Schedule 1 to
this Assignment attached hereto and made a part hereof by this reference. 
  
 Together with the note(s) or other obligations described in such Instrument and all obligations secured by the Instruments now or in the future. 
  
 The foregoing assignment of Instrument, note(s) and other obligations is made by Assignor without recourse and without
representations or warranties of any kind or nature, whether express or implied. 
  
 This Assignment of Security Instrument is not subject to the provisions of Section 275 of the Real Property Law as it is an assignment in the secondary market. 
  
 [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK] 
  

 V-2 

 IN WITNESS WHEREOF, the Assignor has duly executed this Assignment as of this
             day of             , 2006. 
  

			
	LD GEORGETOWN PLAZA ASSOCIATES LLC
		
	By:	 	 
	 	 	Name:
	 	 	Title:

  

			
	STATE OF	  	)
	 	  	:ss.
	COUNTY OF	  	)

  
 BE IT REMEMBERED, that
on this              day of                         ,
2006 before me, the subscriber, personally appeared                         , who, being by me duly sworn on his/her oath,
does make proof to my satisfaction that (s)he is the                      of LD Georgetown Plaza Associates LLC, a Delaware limited liability
company, the company named in the within instrument; that the execution as well as the making of the within instrument by                     
has been duly authorized by the members of said company; that (s)he signed and delivered the said instrument as such                     
aforesaid; that the within instrument was signed and delivered by him/her as and for his/her voluntary act and deed and as and for the voluntary act and deed of LD Georgetown Plaza Associates LLC. 
  

	
	 
	 Notary Public

	
	My commission expires on
                                       
 .

  

 V-3 

 Schedule 1  
  
 Schedule of Instrument 
  
 Deed of Trust, dated December 16, 1999 by Christopher B. Hunsberger and Amy L. Hunsberger in favor of Georgetown Plaza Associates, dba Four Seasons Hotel, Washington
(predecessor-in-interest to LD Georgetown Plaza Associates LLC, a Delaware limited liability company) and recorded in the land records of Montgomery County, Maryland on December 20, 1999 in Liber 17756 at folio 699. 
  

 V-4 

 EXHIBIT W 
  

Engineering Staff 
  

	1.	G. Bartone; 

  

	2.	M. Harpold; 

  

	3.	J. Likos; 

  

	4.	L. McGrane; 

  

	5.	S. Mehta; and 

  

	6.	T. Villegas. 

  

 W-1 

 EXHIBIT X 
  

Close-Out Work 
  

 X-1 

 EXHIBIT Y 
  

West Wing Exterior Work 
  

 Y-1 

 EXHIBIT Z 
  

HVAC Work 
  

 Z-1

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